The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) Additional Financing Appraisal Environmental and Social Review Summary Appraisal Stage (AF ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 11/18/2021 | Report No: ESRSAFA286 Nov 18, 2021 Page 1 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) BASIC INFORMATION A. Basic Project Data Country Region Borrower(s) Implementing Agency(ies) Mozambique AFRICA EAST Republic of Mozambique / Ministry of Agriculture and Ministry of Economy and Rural Development Finance (MADER) Project ID Project Name P178070 Northern Crisis Recovery Project - Additional Financing Parent Project ID (if any) Parent Project Name P176157 Northern Crisis Recovery Project Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Urban, Resilience and Investment Project 11/10/2021 12/17/2021 Land Financing Public Disclosure Proposed Development Objective The Project Development Objective is to improve access to basic services and economic opportunities for internally displaced persons and host communities in targeted areas of Northern Mozambique Financing (in USD Million) Amount Current Financing 100.00 Proposed Additional Financing 100.00 Total Proposed Financing 200.00 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] Nov 18, 2021 Page 2 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) The proposed multi-sector crisis response project will support the Government of Mozambique to improve the delivery of urgent basic services to the IDPs, hosting communities, and people remaining in fragile areas either recently liberated or likely to fall into conflict. The project will initially prioritize the immediate recovery needs by focusing on the provision of basic services and the restoration of livelihoods. These interventions will ensure complementarity with ongoing humanitarian efforts and strengthen Bank joint-work and coordination with traditional partners such as the UN and AfDB and other emerging non-traditional partners. In addition, the project will also lay down elements needed for a transition to the longer-term development of core infrastructure, while building longer- term crisis preparedness and response capacity to participating communities. With respect to job creation, the project’s design includes the possibility of employing IDPs to provide education and health services, among other critical services. Through the participation of the affected communities, the project will ensure that interventions are aligned with their needs and establish a grassroots process for facilitating social cohesion, mitigating conflict, and rebuilding state-society relations. The project design will be guided by the following principles: (a) addressing immediate needs through early recovery activities; (b) empowering local and national authorities for leadership and oversight of the delivery of services; c) engaging directly with partners on the ground and instituting direct third-party implementation arrangements; (d) engaging early in complex crises to help clients in transitioning from early to medium-term recovery and resilience- building activities; (e) maximizing flexibility and quick-disbursing components; and (f) investing in medium-term recovery and resilience-building for the sustainability of interventions. Public Disclosure D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] Like the Parent Project, the Additional Financing (AF) aims at supporting the early recovery of communities affected by the conflict in Northern Mozambique by providing access to basic services, strengthening livelihoods, and restoring core infrastructure required for a resilient recovery. However, it will focus on the recently liberated districts of Mocímboa da Praia, Quissanga, Palma and Muidumbe in Cabo Delgado Province. AF activities of relevance to the ESF include scale up of the parent project under: Component 1 including (i) mental health and psychological support to returning IDPs, especially women and children; (ii) identification and registration of IDPs; Component 2 financing livelihood support for returning IDPs, covering agriculture and fisheries support; Component 3 including (i) provisioning of prefabricated modules for temporary offices of public administration; (ii) reconstruction and equipment of education, health, and public buildings; (iii) rehabilitation of water supply systems and sanitation, and (iv) recovery of electricity; and Component 4 providing technical assistance to finance additional overall support required to implement the enhanced scope. Based on field assessments done by Government in August-September; and in consultation with Development Partners, the urgent recovery activities are under Component 3. Depending on the pace of the returning of IDPs, other activities under Components 1 and 2 already included, will also be covered by this AF. All activities considered in the AF are already covered under the PDO and components of the parent project, and the additional deliverables will extend the total number of beneficiaries associated with this operation. Nov 18, 2021 Page 3 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) The parent project will continue to target Internally Displaced Persons (IDPs) and host communities. It will focus on Mozambique’s northern provinces of Cabo Delgado, Nampula, and Niassa. These provinces, including the recently liberated districts, are among the richest in terms of natural resources, where terrestrial and marine protected areas play a critical role in contributing to the resilience of communities through the provision of ecosystem services—not only as food, shelter and medicine—but also climate change mitigation such as cyclone or flood protection. Miombo is the dominant forest ecosystem in these three northern provinces, where most of Mozambique’s poor reside and depend on the woodlands for their basic livelihood necessities. Despite its high concentration of natural and biodiversity assets, these three provinces have recorded the highest poverty rates (Niassa with 67%, Nampula with 65% and Cabo Delgado with 50%) in the country and have neither benefitted from a peaceful situation in the wake of the civil war, nor from robust post-conflict economic growth. Northern Mozambique faces multiple and intersecting challenges including exposure to natural hazards and climate change, historical legacies of conflict and violence, widespread poverty, limited state presence, scarce delivery of basic services, exposure to the illicit economy through its poorly-policed coastline and porous borders, and an escalating armed and violent insurgency. The security situation in the Northern provinces of Mozambique has degraded significantly in the past few years due to armed attacks in the gas-rich province of Cabo Delgado since 2017. As of September 2021, around 1.3 million people have been affected by the crisis, including 863,000 displaced persons, of which 48 percent are children. The situation has improved in the past few months as the joint forces liberate the district north of Cabo Delgado. The COVID-19 pandemic could further deepen poverty in a region that already suffers from some of the worst socio-economic and development indicators in the country as well as the crisis caused by Cyclone Kenneth in 2019. Cabo Delgado (82,625 km² and 2,320,261 inhabitants) is the northernmost province of Mozambique, bordering the Public Disclosure country of Tanzania and the provinces of Nampula and Niassa. It is the district most impacted by the conflict, where the largest insurgencies and other illegal activities are concentrated. It is also expected to have large investments in the gas sector in the next 15-20 years in the southern districts, from where many of the displaced people have moved to seek shelter in the provinces of Nampula and Niassa. Former forest areas have been transformed into urban settlements, making Nampula the most populous province in Mozambique (79 010 km² and 5,759,000 inhabitants). Poverty and malnutrition rates are the highest in the country. Nampula has received most of the Internally Displaced Persons (IDPs) from Cabo Delgado. Although exposed to extreme weather events, Northern Mozambique’s long coastline teems with rich marine life and is estimated to be the livelihood source for hundreds of remote coastal communities. Niassa (129,056 km2 and 1,810,794 inhabitants) is Mozambique’s least densely populated province and has the largest forest surface area in the country. This province houses Mozambique’s largest protected area, the Niassa National Reserve (42,000 km2) which supports Mozambique’s largest elephant population. Mozambique is one of Africa’s countries most vulnerable to climate change. Particularly the northern coastal district is frequently exposed to a number of climate hazards including floods and cyclones, as well as affected by incremental climate change such as temperature increases and changes in rainfall, and the impacts of rising sea level. Climate- related hazards, such as severe floods and cyclones (Idai and Kenneth in 2018) in the central and northern region, are having a cumulative and devastating impact on the population, public services and infrastructures that is insufficiently prepared. The AF targeted area falls under the north-eastern part of Cabo Delgado and covers approximately 11,000 km2 with most districts being contiguous and bordering the Indian Ocean, except Muidumbe which is inland. The Quirimbas Archipelago Biosphere Reserve, Quirimbas National Park and the dry coastal forest are outstanding areas of Nov 18, 2021 Page 4 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) conservation importance that falls entirely or partially within the AF geographic area of intervention. The northern Cabo Delgado Province is not a cyclone-prone region. D. 2. Borrower’s Institutional Capacity The parent project and AF will be implemented by the Ministry of Agriculture and Rural Development (MADER) which is relying on the National Sustainable Development Fund (FNDS) to manage the environmental and social risks and impacts of the project. No changes in the institutional arrangements are foreseen. FNDS has hired UNOPS to manage several project activities including E&S. FNDS is under the MADER administration and has experience of implementing and supervising safeguards aspects including the current projects such as Landscape - P149620, MOZFIP - P160033, MOZBIO II - P166802, Zambezia ERP - P164524, Northern Mozambique Rural Resilience Project (MozNorte) - P174635 and Sustainable Rural Economy Program (SREP) - P172657. FNDS has competitively selected qualified environmental and social specialists (4 at the central level and 6 at the province level including 1 in Nampula and 1 in Cabo Delgado) which are familiar with Bank guidelines and procedures on environmental and social (E&S) risk management. However, FNDS has limited experience in managing projects under the Environmental and Social Framework (ESF) with 2 projects recently approved by the WB (SREP - P174002 and MozNorte - P174635) using the ESF. As such, it is still necessary to strength FNDS capacity through provision of technical assistance and training to improve the procedures and processes of E&S risk supervision, particularly under the context of fragility, conflict and violence, not only within the FNDS but also with the local level partners, private or public, institutions and stakeholders. The training will include topics such as Environmental and Social Standards, occupational and community health and safety, emergency preparedness and response, gender-based violence risk mitigation, preparation and implementation of ESMPs and RAPs, etc. UNOPS is responsible for preparing and implementing risk management instruments with oversight from FNDS. As such, the Parent Project ESMF and RPF has been prepared, consulted upon Public Disclosure and disclosed. Moreover, FNDS has designated one social and one environmental focal point to the Parent Project which will extend their scope of work to cover the AF activities and coverage area. UNOPS has appointed one environmental specialist, one social specialist, community development specialist and one GBV/SEA/SH specialist to implement the Parent Project activities. It will appoint another environmental, another social specialist and another GBV/SEA/SH specialist to cover the AF activities. These positions are thought to be adequate since they will only cover the 5 districts of the AF which have similar environmental and social risks to the Parent Project thus likely to require similar efforts. It will also strengthen and continue to implement the ESF capacity building action plan agreed upon with the Association. The same arrangements of the Parent Project will be applied to the AF. At this stage. Additionally, the project will rely on multiple implementing partners (the Ministry of Land and Environment [MITA]; the Ministry of Health [MISAU]; Ministry of Education and Human Development (MINEDH), the Ministry of Gender, Child and Social Action [MGCAS]; Ministry of Public Works, Housing and Water Resources [MOPHRH]; Ministry of Sea, Inland Waters and Fisheries [MIMAIP]and the National Institute of Disaster Management [INGC]) with varying capacity at local and central levels. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) High Environmental Risk Rating High The environmental risk rating is 'high' mainly due to the potential adverse risks and impacts from scale up of construction and operation of infrastructure for basic services in recently liberated districts which are the primary focus of the AF. Key environmental risks and impacts stemming from Component 1 are associated with transmission Nov 18, 2021 Page 5 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) of communicable diseases (COVID-19) that could arise through IDP’s registration and workers and public gathering for capacity building workshops and trainings as well as biomedical waste generated from provisioning of health services. Like for the parent project, the AF under, Component 2, will finance provision of agriculture and fisheries inputs likely to lead to an increasing loss of habitat through land clearing, community work and related risks of injuries and accidents. This component will also provide kits for micro and small business development, although the range of activities to be financed is not yet known, no significant risks to critical and natural habitats or health and safety issues are expected. Moreover, there are occupational and community health and safety risks inherent to the use of materials, equipment and tools during cash for work programs or construction protection dikes, ponds and multipurpose water tanks. Component 3 will continue to finance temporary and permanent infrastructure rehabilitation or construction multi-purpose boreholes, classrooms, health units, toilets, latrine slabs, water tanks, hand-washing points, etc., as well as construction and rehabilitation of public administration infrastructures and restoration of power supply systems, as new activities. Key environmental risks and impacts are associated with the civil works interventions and include soil, vegetation, marine and coastal habitats and fauna disturbance and degradation due to excavations and earth movements for preparation of construction sites; soil and water bodies contamination through uncontrolled spillages and wastewater from temporary ablutions and resettlement houses; waste generation and handling (both solid and sewage) from use of fossil fuel based machinery and equipment, nuisance and road traffic safety issues to the community as well as occupational health and safety concerns related with the use of construction equipment, vehicles and machinery to direct, contracted and community workers. Other activities under Component 2 (training on entrepreneurship and business management) and Component 4 (strengthening the fiduciary and environmental and social standards) are mostly technical assistance (TA) activities that fall under Type 3 (capacity building activities) which have more diffuse and induced impacts, often playing out Public Disclosure over a longer term. The Environmental Risk Rating of the parent project and AF also considers the varying capacity of the multiple implementing partners and direct third-party implementation institutions to manage potential risks, particularly under the new ESF requirements. FNDS, the implementing agency, has limited experience in managing environmental risks and impacts under the ESF, although the third-party institution (UNOPS) that has been contracted has experience applying the ESF in recent Bank projects. From the above, the parent project and AF is High Risk because is complex with multiple areas of intervention and of large scale with possibility to affect sensitive locations such as natural habitats and critical habitats. Moreover, insurgent attacks are outside of project control and may have impact on supervision and monitoring and overall ES performance and outcomes as the situation evolves. Social Risk Rating High The Social risk rating of the parent project and the AF is assessed as High. All activities considered for this AF are already covered under the PDO and parent Project components. They are expected to have positive social and economic impacts by financing urgent recovery activities that have been pre-identified under the Plan of Reconstruction of Cabo Delgado (PRCD), for the recently liberated districts of Mocimboa da Praia, Palma, Quissanga and Muidumbe. The will provide access to basic services, strengthening livelihoods and restoring core infrastructure required for a resilient recovery. Potential social risks are related to the following: (i) the project will involve interventions that may cause land acquisition and resettlement; (ii) these interventions will require manpower to be hired, mostly locally, although specialized manpower is to be recruited outside the project area which could lead to labour influx with potential risk of conflict with the local community and Gender-Based Violence/Sexual Exploitation and Abuse/ Sexual Harassment risks; (iii) potential risk of elite capture and exclusion from the project benefits or of conflict if targeting of program beneficiaries (cash for work, etc.) is not carefully planned and consulted upon with IDPs and local host communities; (iv) security risks due to the context of armed conflict in Cabo Delgado; and (v) Nov 18, 2021 Page 6 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) health risks to workers and communities from the spread of COVID-19 during IDP registration, public consultations, civil works and gatherings. The AF focus primarily on expanding the scope of activities under Component 3 in the newly liberated districts, that include but are not limited to: (i) provisioning of prefabricated modules (container type) for temporary offices of public administration; (ii) reconstruction and equipping of education, health, and public administration buildings; (iii) rehabilitation of water supply systems and sanitation; and (iv) restoration of electricity. Component 3 will use labor for construction activities. While most of the labour force is expected to be recruited from local areas, the influx of labor for civil works is a risk to be considered. This will need to be managed both in terms of working conditions for labor, health and safety of workers, camp management (if and when required) as well as the increased risk of Sexual Exploitation and Abuse/Sexual Harassment (SEA/SH) due to labor influx. Under Component 2 the provision of livelihood support for returning IDPs, cash for work programs for youth and women; provision of seeds, distribution of vouchers for inputs, and extension services to agriculture/farmers and inputs to fisheries; and of kits for micro and small business development poses the risk of elite capture and will require appropriate measures to ensure targeting of beneficiaries is undertaken in a transparent manner with clear selection criteria. These activities also pose a risk of social conflict between internally displaced people and host communities requiring appropriate awareness raising and continuous monitoring. This potential risk will be reduced since the AF focus in returning of IDPs only to their original areas in the newly liberated districts. Training on entrepreneurship and business management under component 2 and cash for works programme also pose a risk of GBV/SEA/SH and increased risk of infectious diseases such as COVID-19 requiring the use of appropriate measures to avoid and minimize such risks. Although FNDS has developed some experience in E&S risk management in WB financed projects (especially in conservation areas), the capacity of the multiple implementing partners, including UNOPS, and other direct third-party implementation institutions to manage potential risks needs to be assessed and Public Disclosure improved as required. FNDS has no prior experience with ESF requirements. 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: Like the parent project, the AF activities are expected to support the early recovery of communities affected by the conflict in Northern Mozambique but specifically in the recent liberated districts of north-eastern Cabo Delgado Province, by providing access to basic services, strengthening livelihoods and restoring core infrastructure required for a resilient recovery, achieving these outcomes implies a number of environmental and social risks and impacts that will be identified throughout the environmental and social assessment process foreseen under ESS1. The main environmental risks and impacts that will stem from AF are very similar to the parent project and will be generated through construction, development and operation of core infrastructure for basic services such as water and sanitation, education, health, energy and construction of community infrastructure. These civil works are likely to create disturbance and degradation of soil, vegetation, marine and coastal habitats and fauna; soil and water bodies contamination; waste generation and management; air pollution, dust, noise and vibration; road traffic, community and occupational health and safety hazards. The parent project and AF are also expected to increase the area of land to be cleared and cultivated as direct impact of financing agricultural kits and an increase of the fishing effort and possibly overfishing as a direct impact for financing fishing kits. Moreover, Component 2 will also provide kits for Nov 18, 2021 Page 7 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) micro and small business development which may generate minor or negligible risks to critical and natural habitats or health and safety issues since the Exclusion List and an Environmental and Social Screening Form already included in the parent project ESMF will be applied to the AF to exclude any potential and significant negative risks and impacts. Major social risks and impacts that will stem from the AF (increased project geographical areas to newly liberated areas) are very similar to the parent project, consisting of land acquisition and resettlement due to infrastructure construction, rehabilitation and improvements, land identification and demarcation process for IDP sites and support to agriculture, labor management issues and possibly labor influx, GBV/SEA/SH risks due to construction and training activities and social marginalization and conflict between IDPs and host communities. Risks related to exclusion of marginalized groups such as women/women headed households, children/child headed households, persons with disabilities, etc., pose a risk to the successful implementation of project activities. Despite the announcement of newly liberated district and actions to ensure IDPs return to their original areas, the prevailing security situation in in neighboring districts in Cabo Delgado heightens the project’s social risk. The low capacity for ESF supervision also adds to the overall social and environmental risk. In addition, the fact that many IDPs are disperse in several locations and some settled in new areas will pose and adverse risk for stakeholder engagement to coordinate a safe return to liberated areas. To mitigate the environmental and social risks and impacts, the project will develop and implement site specific Environment and Social Management Plans. Other instruments to be prepared include: Labor Management Procedures, Chance Finds Procedures, and Emergency Response Plan as necessary for managing risks and impacts related to any civil works and security issues. Any construction and rehabilitation of infrastructure will develop and implement an ESMP that will be reviewed and approved by the Bank before the start of construction. The Technical Assistance (TA) provided under Components 1 and 4 will require that the Terms of Reference (ToRs) for Public Disclosure the TA outputs includes relevant requirements of the ESF and the ToRs will be reviewed by the Bank to ensure, among the things that all relevant ESF aspects have been included. The risks of transmission of communicable diseases, i.e., COVID-19—through face-to-face meetings, trainings and workshops—will be mitigated using specific contingency protocols for COVID-19 prevention. Due to the security situation in Cabo Delgado, a Security Risk Assessment (SRA) and a Security Management Plan may be prepared subject to confirmation through the SRA. This Assessment and Plan will present means for delivery of activities in the context of the evolving security situation, including the recently liberated areas of the AF activities. The SRA and SMP is a standalone document being prepared and will be updated to cover the AF geographical areas during AF implementation as the project will not work in conflict-affected areas. Other contextual risks to the project are related to climate change impacts and vulnerability. However, according to Anadarko's 2014 environmental impact study, the AF targeted northern districts of Cabo Delgado do not face frequent high flood and cyclone impacts like the remaining areas of the parent project. Therefore, the Borrower will update the Risk Hazard Assessment (RHA) and Emergency Response Plan (ERP) taking into consideration the principle of proportionality. There are risks of increasing expectations among IDPs and the eventual increase in the number of people arriving in the temporary and relocation sites but this is beyond the control of the project. However, through the upcoming strategy being developed by the GoM and the Social Assessment planned under the project, a better understanding of scalability of interventions and impacts on host communities can be provided. These should inform the project in Nov 18, 2021 Page 8 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) coordinating a response to the situation with other implementing partners and developing outreach and communication mechanisms to ensure that influx is managed across other refugee hosting sites. In reviewing possible cumulative impacts, although is difficult to compile a comprehensive list of existing and planned developments in the AF area at this stage as this crisis situation unfolds, it was noted that there are other World Bank existing and planned operations (Northern Mozambique Rural Resilience Project - P174617; Human Capital and Preventing Conflict Escalation in Mozambique - P175298; and Mozambique Northern Urban Development Project - P175266) as well as other initiatives that are part of the Plan for the Reconstruction of Cabo Delgado that have the potential of cumulative incremental negative environmental impacts such as areas of vegetation being cleared, exposure to dust emissions, noise and vibration, community health and safety issues, etc., in the Northern Region. Therefore a Regional Environmental and Social Impact Assessment (RESIA) is being prepared as part of the PPA for all WB projects listed above and working in Northern Mozambique. The ToR has been submitted by the Borrower and is being reviewed by the Bank to ensure the RESIA determines the collective risks and impacts of significance of activities taking place. The RESIA TOR will be updated to take into account the geographic expansion that the AF brings. Once the RESIA is completed, the Bank and the Borrower will agree on an action plan to implement its findings and recommendations, including updating any existing E&S instruments. The project is yet to hire a service provider to provide independent review of project implementation and verification of project results, including adherence to all aspects of the Project Operations Manual and the ESCP, SEP and all ESHS Instruments. This will be applied to the AF as well. The project Environmental and Social Commitment Plan (ESCP) and Stakeholder Engagement Plan (SEP) have been updated to include the material measures and actions required Public Disclosure for the parent project and AF to meet the ESSs over a specified timeframe and commitments to undertake the required assessments and production of the necessary instruments for the Project. Mitigation measures for site-specific impacts will be managed through the implementation of required environmental and social management instruments to be prepared for each one of the proposed subprojects. To date, no site-specific instruments (EIAs, ESMPs, RAPs, etc.) have been prepared that require updates. Instead, project instruments that have been prepared, consulted upon and disclosed (ESMF and RPF) will be updated and redisclosed during implementation. Moreover, as per last ISR current rating for all relevant ESS is Satisfactory. Relevant capacity building measures have been included in the parent project ESCP such as an assessment report and capacity building action plan. However, it will be further strengthened to reflect the scale up of activities within 60 days of AF effectiveness. In conclusion, the following instruments will be updated during project implementation since the AF is being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12: an Environment and Social Management Framework (ESMF) including as annexes the Chance Finds Procedures (CFP), Labor Management Procedures (LMP) including a worker’s GRM, Risk Hazard Assessment (RHA), a Social Assessment (SA), Emergency Response Plan (ERP), Resettlement Policy Framework (RPF), a standalone Security Risk Assessment (SRA) and Security Risk Management Plan (SRMP) for Cabo Delgado, a GBV/SEA/SH Risk Assessment and Action Plan, and a Stakeholder Engagement Plan (SEP) including a GRM. Since site specific ESIAs/ESMPs or RAPs have not been prepared yet, these will not be updated. ESS10 Stakeholder Engagement and Information Disclosure Nov 18, 2021 Page 9 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) ESS 10 is assessed as relevant for both parent project and AF. The Borrower will ensure the adoption of a consistent, comprehensive, coordinated and culturally appropriate approach for the purpose of engaging stakeholders and disclosing project related information to stakeholders. The Project has a multitude of Implementing Agencies across various sectors such as Ministry of Land and Environment [MITA]; the Ministry of Health [MISAU]; Ministry of Education and Human Development (MINEDH); the Ministry of Gender, Child and Social Action [MGCAS]; Ministry of Public Works, Housing and Water Resources [MOPHRH]; Ministry of Sea, Inland Waters and Fisheries [MIMAIP] and the National Institute of Disaster Management [INGC]; international stakeholders such as UNOPS and International Organization for Migration (IOM); and local stakeholders such as NGOs, CBOs, IDPs, host communities and local government institutions. The existing Stakeholder Engagement Plan (SEP) developed under the parent Project has been updated to reflect the AF activities in recently liberated areas. It outlines a road map for consultation, stakeholder mapping exercise, details of types, frequency and approach to consultations, information-sharing, active inclusion and complaints management of stakeholders. The public consultation process and specific activities proposed to engage stakeholders during project preparation has been detailed in the draft SEP. The SEP will be further updated within three months of AF effectiveness. It will outline means of consultation, especially in a COVID-19 situation in line with World Bank guidance, including the Technical Note on “Public Consultations and Stakeholder Engagement in WB-supported operations when there are constraints on conducting public meetings”, as well as the GoM’s own policies. Adequate measures will be in place to ensure that consultations are inclusive and take into consideration vulnerable groups (illiterate persons, women, persons with disabilities, the elderly, etc.). Such groups will be consulted through an identification process and targeted consultations and assessments to ensure their inclusion in Project activities. Public Disclosure District and provincial governments, local authorities and community leaders will require close support and capacity building to effectively engage with stakeholders and project beneficiaries and to avoid possible exclusion of vulnerable groups. A feedback system will ensure that stakeholders are informed about how their views have been integrated in project implementation. The SEP will be updated regularly by the PIU staff. A Grievance Management Procedure will be set up at the PIU and operationalized at the IDP and host community level to ensure that any complaints are adequately addressed. The Project Grievance Redress Mechanism (GRM) detailed as a specific section of the SEP, is GBV/SEA/SH sensitive to deal with such complaints appropriately. The implementing agencies will provide stakeholders with timely, relevant, understandable and accessible information, and consult with them in a culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination and intimidation. 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 to the parent project and AF. Despite the mental health and psychological support to returning IDPs under Component 1 and identification and registration of IDPs under Component 2 activities are not related to civil works, it will require the recruitment of third parties, contracted and community workers. Construction activities under Component 3 will require the recruitment and employment of direct, contracted, primary supply and community workers (under cash-for-work activities). To ensure fair labor practices and health and safety of workers during the construction and operational phases of the project, the borrower will take into consideration the Mozambican Labor Laws and ESS2 on labour and working conditions. It is not clear at this stage if the project will use Nov 18, 2021 Page 10 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) community works as a social protection strategy. However, in case labor is provided by the community as a contribution to the project, or for the purpose of fostering community- driven development, or reason to provide a social safety net or providing targeted assistance in fragile and conflict- affected situations, community workers and labor issues will be addressed through the update of the Parent Project Labor Management Procedures (LMP), which will also follow OHS principles. Moreover, the requirements of paragraphs 34 to 38 of ESS4 will apply to community workers. The borrower developed measures for the identification and mitigation of parent project Occupational Health and Safety risks associated with the construction, rehabilitation, operation and maintenance aspects to be financed under Component 3 in line with ESS2 as part of the ESMF, including a LMP, and will update both taking into consideration the scale up and new geographical areas of the AF. The borrower will be responsible for ensuring that Labor Management Procedures (LMP) are implemented accordingly throughout the parent project and the AF life cycle. The first ISR from last July noted that most Environmental and Social instruments were still under preparation and no activities had started on the ground, since then the ESMF has been prepared and approved which includes a Labor Management Procedures that details on how workers are going to be managed throughout project implementation and include guidelines for a worker’s GRM for all types of workers. The ESMPs will also include procedures on investigation and reporting of incidences and non-conformance, emergency preparedness and response procedures, and continuous training and awareness of workers. The Project will need to also ensure that Labor Management Procedures (LMP) are consistent with the provisions of the World Bank’s ESS2, which specifies that all contractors and sub-contractors must ensure that there is no forced or Public Disclosure child labor employed during construction. The LMP prepared for the parent project includes provisions to ensure fair wages in line with local legislation and provide contractual hiring of workers (both male and female), adequate payment for overwork and other measures and will be applied to AF. If a Labor Camp is established for construction purposes, the facility must follow guidelines established by the Project to ensure safe and hygienic living conditions. A labor GRM will need to be developed and implemented by Contractors. The LMP will guide the production and implementation of any site specific plans including specification of responsibilities at sub-project implementation stage by all stakeholders to address labor management requirements. ESS3 Resource Efficiency and Pollution Prevention and Management ESS3 is currently considered relevant to the parent project and AF. Civil works and waste management services under Component 3 are likely to continue to pose risks related to soil pollution from construction debris (cement, metal, plastic, glass, etc.), water body contamination sewage (blackwater and graywater) from ablution blocks, land clearing and habitat conversion, air pollution and GHG emission from use of machinery and equipment based on fuel engines, uncontrolled spillages of fuel, oil and lubricants. Similar impacts and risks are expected from new activities such as the construction and rehabilitation of public administration infrastructures and restoration of power supply systems. The filling of an Environmental and Social Screening form for both parent project and AF will determine the need to prepare ESMPs to manage any pollution resulting from civil works. Moreover, Component 2 will invest in agriculture kits but will not involve use of pesticides and fertilizers, and therefore not will not imply pest management issues. The AF scale up of parent project activities are expected to generate minimal quantities of GHGs. However, to reduce Nov 18, 2021 Page 11 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) these emissions in remote areas where there is no electricity network to connect during civil works and operation phase of infrastructures as well as provision of health, education and social services, the project will prioritize off-grid and clean energy solutions such as solar panels instead of fossil fuel-powered generators. Moreover, like the parent project, the AF will adopt WBG General Environment, Health and Safety Guidelines (EHSGs) and other guidelines relevant for the project activities: Annual Crop Production, Perennial Crop Production, Aquaculture, and Mammalian Livestock Production. Moreover, since the AF will finance rehabilitation of water supply systems and sanitation, recovery of electricity and rehabilitation and construction of health, education and public infrastructures and in doing so will use resources and raw materials such as water, energy, minerals, timber, etc. As such, the following specific aspects in relation to ESS3 were screened during project preparation to identify the potential for environmental issues during: (i) resource extraction and raw materials sourcing; (ii) transportation of resources and raw material; and (iii) use of resources and application of raw materials including cement, sand, timber, aggregates and sticks. The extraction of water from rivers or inert materials from quarries and borrow pits during construction will require environmental licenses and permits as per national legislation. The transportation of cargo or fluid hazardous materials will follow WBG ESH General Guidelines on Transport of Hazardous Materials and GIIP to avoid spillages. Water use and energy consumption for IDPs and host communities during operation phase are likely to be significant but will be determined during implementation phase through a site-specific ESMPs. However, since the project design includes the Building Back Better principles for a greener, sustainable, and resilient construction, where feasible the project will include provision for use of rainwater harvest, solar panels, etc., including other adequate measures for improving the efficient consumption of energy, water, and raw materials, as well as any other resources as relevant as described in Public Disclosure the ESMF. ESS4 Community Health and Safety ESS4 is considered relevant to both the parent project and AF as the proposed activities may pose community and safety risks to nearby communities. Civil works such as constructing water and sanitation systems, dykes, hospitals and schools may generate traffic and road safety hazards associated with road obstructions, diversions or closures to give room to works with concomitant increased traffic volume on public roads and risks of accidents. This will be exacerbated by the increased flow of trucks to provide humanitarian assistance to IDPs. The civil works may also generate dust, noise, vibration, waste, soil and water pollution that will have impact on surrounding communities. To address these risks, the site-specific ESMPs will outline detailed management and mitigation measures for community health and safety management (including Waste Management Plan, Traffic and Road Safety Management Plan) during civil works rehabilitation and refurbishment of social and economic infrastructures as well as during deliveries of hazardous materials, and/or storage, transportation and disposal, as needed. It is not clear at this stage if the project will use community works as a social protection strategy. However, in case labor is provided by the community as a contribution to the project, or for the purpose of fostering community- driven development, or reason to provide a social safety net or providing targeted assistance in fragile and conflict- affected situations, community workers and labor issues will be addressed through preparation of Labor Management Procedures (LMP), which will also follow OHS principles. Moreover, the requirements of paragraphs 34 to 38 of ESS4 will apply to community workers. Nov 18, 2021 Page 12 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) It is not envisaged that the project will significantly affect ecosystem services which in turn may result in adverse health and safety risks and impacts to surrounding communities. Minor or negligible impacts are expect to affect only the provisioning ecosystem services due to harvest of raw materials (including lumber, building poles, thatch grass, wild fruits, fuel wood). Particularly, given the expected slight increase in demand from the new arrived IDPs in hosting communities and resettlement areas, which will need to also rely on natural resources harvest to meet their essentially needs. This impact is however, expected to be temporary, reversible and of low magnitude. Impacts on the health, safety and well-being of workers and project-affected communities stem from two main areas: firstly from ongoing COVID-19 public health crisis. The project has health risks including transmission of communicable diseases (COVID-19) during IDP’s registration in relocation sites and host families and workers and public gatherings for building social cohesion, capacity building workshops and training as well as beneficiaries registration and payment of direct cash transfer. This will be mitigated through the use of an appropriate COVID-19 prevention protocol as well as a COVID-19 screening sheet to assess the risk of exposure of communities. This sheet will be mandatory for FNDS and other local implementing partners and third-party agencies, and they will be required to (i) prepare or update and implement their COVID-19 safety contingency plan, and (ii) comply with social distancing policies to minimize worker illness. To ensure COVID-19 risks are addressed under project implementation, training sessions will be organized for those involved. Moreover, Technical Note: Public Consultations and Stakeholder Engagement in WB-supported operations when there are constraints on conducting public meetings and WHO COVID-19 Guidelines will be considered to minimize and mitigate COVID-19 risks. Public Disclosure Other H&S risks consist of GBV/SEA/SH that are possible within an office environment, public works programs, construction activities, during IDP’s registration in relocation sites and among host communities and during training. These risks will be assessed through a GBV/SEA/SH Assessment and Action Plan. It will be implemented across all activities. A SEA/SH risk assessment will be undertaken for the Project. Based on this assessment, the Project will produce a SEA/SH action plan to ensure that any risks emerging from project interventions especially in the context of labor use are adequately addressed. A Code of Conduct on SEA/SH for all workers is expected to be in place. Moreover, due to recent insurgency attacks on civilians in Cabo Delgado and the vulnerability that this causes to local communities, the Borrower is conduct a Security Risk Assessment (SRA) and preparing a Security Management Plan (SMP) to determine the level of security required for project workers, assets, and activities as well as identifying mitigation measure to avoid or minimize risks and impacts posed by these security arrangements to those within and outside the project site as per the WB’s Good Practice Note (GPN) on Assessing and Managing the Risks and Impacts of the Use of Security Personnel. The SRA and SMP will be further updated to reflect the geographical areas of the AF. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement ESS5 is considered relevant as Component 3 will finance community infrastructure construction, land demarcation, infrastructure rehabilitation and expansion (water supply systems and sanitation facilities) and attention centers for IDPs. These activities will require screening of impacts and the production of Resettlement Action Plans where required. Additionally, land acquired for IDP sites and for agriculture land will also be screened, according to criteria and procedures set out in an RPF, for impacts and appropriate instruments including RAPs will be prepared where Nov 18, 2021 Page 13 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) required by the RPF. Agriculture land will be provided to IDPs and host communities will be accompanied with a certificate stating temporary ownership and will also be screened in accordance with criteria set out in the RPF to determine if any remedial measures are needed, including in the case of retroactive financing. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ESS6 is considered relevant to the parent project and AF at this time. As the exact locations of physical infrastructure are not identified, the potential risks and impacts relevant to ESS6 are not known. It is expected that activities will mostly occur within the natural and modified habitats in rural areas. Initial screening for critical habitats at parent project geographical areas has been conducted using the IBAT tool and the following sites were identified: Cabo Delgado province: Quirimbas National Park and World Heritage Site; Niassa province: Niassa Special Reserve, Lake Niassa Partial Reserve, and Njesi plateau Key Biodiversity Area (KBA); Nampula province: Netia KBA and the following Forest Reserves: Derre, Mepalué, Ribaué, Mecuburi, Matibane and Baixo Pinda. The same methodology was applied to the targeted districts of the AF and no new critical habitats were found, but the ones already identified under the parent project for the Cabo Delgado province: Quirimbas National Park and World Heritage Site. Therefore an E&S checklist to screen out critical habitats and other important habitats and forest ecosystems has been prepared and included in the ESMF and will be employed in these sites for both the parent project and AF. Even though some civil works (construction, rehabilitation and expansion) planned under the parent project and AF will focus on, or next to, already existing infrastructure, it will also necessitate limited physical interventions (e.g., land clearing, resource use, temporary diversion of watercourses or roads to allow culverts or bridge repairs) that Public Disclosure could negatively impact the biodiversity or living natural resources. Moreover, the construction of core infrastructure for basic services such as water and sanitation systems, health centers, and schools may also require vegetation clearing, opening of temporary access roads or borrow, use of natural resources as construction materials, etc. In addition, there are other activities susceptible to negatively affecting biodiversity conservation: financing agriculture and fishing kits which has the potential to lead land clearing and unintentionally convert critical habitats, biodiversity loss, and overexploitation of marine resources. In order to avoid these risks, the Borrower will not implement any project including for AF activities that has the potential to convert critical habitat and kill or harvest IUCN Red List threatened species or national protected species. The guidelines for preparation of ESIAs/ESMPs as part of the ESMF includes measures to identify, assess and mitigate any significant impacts on natural habitats, including as needed the preparation and implementation of a Biodiversity Management Plan. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities ESS7 is considered not relevant to the Parent Project and this AF based on available information, as there are no known Indigenous People/Sub Saharan African Historically Underserved Traditional Local Communities in Mozambique. ESS8 Cultural Heritage ESS8 is considered relevant for both the parent project and AF. Like the project, the AF will finance the rehabilitation and expansion of existing infrastructure and construction of new infrastructure under Component 3. These activities may entail site clearing, and earth works that could have an impact on tangible and intangible cultural heritage Nov 18, 2021 Page 14 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) features located within the project footprint and underground. As the locations of the project, and the likelihood of occurrence of cultural heritages features, are now known, the parent project and AF will screen and avoid potential cultural heritage sites in each sub-project and incorporate chance find procedures. The Chance find procedure will form part of the sub-project specific ESMP and will address potential impacts of civil works on tangible and intangible cultural heritage sites consistent with ESS8. General guideline for Chance Find Procedures have been included in the project ESMF and will be updated to reflect the AF geographical area. ESS9 Financial Intermediaries ESS9 is not relevant to the Parent Project or the proposed AF interventions as no financial intermediaries will be used. B.3 Other Relevant Project Risks The risk of social conflict between IDPs and host communities is relevant to the project. Additionally, marginalized groups can be excluded from project benefits unless measures are in place to identify them and to ensure that activities include such groups. A robust Social and Conflict Assessment will assess issues related to impact of conflict on IDPs and host communities, influx dynamics, dynamics of marginalization and recommend measures for including marginalized communities in project benefits. The Project instruments will be updated and subsequently prepared in accordance with the recommendations of this assessment. C. Legal Operational Policies that Apply Public Disclosure 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 use of Borrower Framework is not being considered in part or in all. IV. CONTACT POINTS World Bank Contact: Lizardo Narvaez Marulanda Title: Senior Disaster Risk Management Specialist Nov 18, 2021 Page 15 of 16 The World Bank Northern Crisis Recovery Project - Additional Financing (P178070) Telephone No: 202-458-2024 Email: lnarvaez@worldbank.org Contact: Xavier Agostinho Chavana Title: Disaster Risk Management Specialist Telephone No: Email: xchavana@worldbank.org Borrower/Client/Recipient Borrower: Republic of Mozambique / Ministry of Economy and Finance Implementing Agency(ies) Implementing Agency: Ministry of Agriculture and Rural Development (MADER) V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Public Disclosure Task Team Leader(s): Xavier Agostinho Chavana, Lizardo Narvaez Marulanda Practice Manager (ENR/Social) Africa Eshogba Olojoba Cleared on 18-Nov-2021 at 05:57:48 GMT-05:00 Safeguards Advisor ESSA Ning Yang (SAESSA) Concurred on 18-Nov-2021 at 08:51:14 GMT-05:00 Nov 18, 2021 Page 16 of 16