The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) Integrated Safeguards Data Sheet Restructuring Stage Restructuring Stage | Date ISDS Prepared/Updated: 08-Nov-2018| Report No: ISDSR26003 Regional Vice President: Carlos Felipe Jaramillo Country Director: Paloma Anos Casero Regional Director: Luis Benveniste Practice Manager/Manager: Emanuela Di Gropello Task Team Leader(s): Marcelo Becerra, Daniela Pena De Lima The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. . I. BASIC INFORMATION 1. BASIC PROJECT DATA Project ID Project Name P129342 Piaui: Pillars of Growth and Social Inclusion Project Task Team Leader(s) Country Marcelo Becerra, Daniela Pena De Lima Brazil Approval Date Environmental Category 21-Dec-2015 Partial Assessment (B) Managing Unit HLCED PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 1,133.69 Total Financing 1,133.69 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 120.00 Non-World Bank Group Financing Counterpart Funding 1,013.69 Borrower/Recipient 1,013.69 The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) 2. PROJECT INFORMATION PROG_INF O Current Program Development Objective The objective of the project is to: (a) reduce dropout of students in public secondary education; (b) increase access to diagnosis and treatment for patients with chronic diseases; (c) expand the registration of groundwater users in rural areas and land tenure regularization; and (d) increase the participation of poor family farmers in rural productive value chains. . Note to Task Teams: End of system generated content, document is editable from here. 3. PROJECT DESCRIPTION Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. . 4. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN) Piauí is located in the Brazilian Northeast region, known by severe drought periods. Rainfall in the State is complex, varying from 2,000 mm to less than 500 mm in some spots. In most parts of the State, the annual precipitation is smaller than 1,000 mm, and potential evaporation by far exceeds precipitation. The rainy season lasts four months, from February to May, but has considerable year-to-year and decade-to-decade variability. The Parnaiba Watershed, second largest in the Northeast region, drains most of the State. This watershed is sub-divided, for administrative purposes, in twelve sub-basins, with distinct characteristics. The drainages located in the central and east portion of the State are commonly intermittent, due to the semi-arid climate and hydrogeology conditions. Some sub-basins, such as the Gurguéia, have more water resources, attracting occupation and economic activities. The State has high potential aquifers located in the Parnaiba Sedimentary Basin, with water resources estimated in 4.500 hm³. However, underground water use is still limited. Piauí has distinct physiographical characteristics. The southwest region has characteristics similar to the Brazilian Central Plateau, with the Cerrado Biome occurrence. The south and central regions have the semi-arid climate, and the Caatinga Biome. The coastal region, north, also has distinct characteristics, with wet lands and coastal vegetation. Atlantic Forest vegetation also occurs in localized spots. The Cerrado, (the Brazilian savanna), is a strategic biome due economic and environmental reasons, and, also, for food security. Notwithstanding its ecological and socio- economic importance, the Cerrado has suffered a rapid alteration in the last three decades due to human The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) occupation. There has been growing pressure to open up new lands for increasing meat and grain production for exports. Currently, the Cerrado is responsible for over one half of Brazil's soybean production. Estimates indicate that deforestation in the Cerrado biome is proportionally more severe than that of the Amazon biome. Between 2002 and 2008, Amazon deforestation represented 3.2 percent of the biome, with 82 percent of the original forested area remaining. Over the same period, the Cerrado biome lost 4.1 percent of its cover and only 52 percent of the area covered by native vegetation remains. The Cerrado in Piaui, southeast region, is considered the Country last “agriculture frontier,� and is facing serious threats. The rapid expansion of agriculture in the region has caused natural vegetation to be converted to alternative land uses, especially large soybean plantations. The other major Biome in Piauí is the Caatinga, one of the richest dry forests in the world. It encompasses the drier part of northeastern Brazil, and has very complex transition zones with Cerrado, Atlantic forest and Amazon, which have allowed a considerable biotic interchange among these regions during the evolutionary time. The Caatinga is the dominant vegetation in Piauí, which has several distinctive types of Caatinga vegetation. The Caatinga covers most of the State south and central areas, which have been occupied for centuries. A large portion of the Caatinga has been altered for agriculture development, goat and cattle grazing. Intense erosion and desertification has been identified in the State central portion. Overall the Project is expected to have a positive social impact and pro-poor effects, particularly in the state’s rural areas. Levels of poverty and extreme poverty remain very high in Piauí; 21.3 percent of the 3.18 million inhabitants live in extreme poverty. Piaui also faces high levels of inequality. Income distribution remains highly unequal: the 20 percent poorest live with a monthly per capita income of R$ 85.70, while the 20 percent richest have a monthly per capita income of R$ 1.349,37. Piaui’s Gini coefficient was 0.57 in 2012, which is above the national coefficient of 0.53 and the second highest among Brazilian states. This situation is exacerbated in rural areas, where 54 percent of residents are considered poor and 40 percent live in extreme poverty. In urban areas, the share of the population living with earnings smaller than one and smaller than three minimum wages are 17.8 and 64.7 percent, respectively; whereas in rural areas, they equal 39.2 and 87.7 percent. The average per capita household monthly income of the rural population is just 47 percent of the state average and 38 percent of the same average among the urban population. The bottom quarter of the rural population lives with average per capita household monthly incomes that are only 32 percent of their urban counterparts. Rural poverty is directly related with poor family farmers, especially in the semi-arid regions, who derive their income mostly from subsistence, small-scale and rain- fed agriculture characterized by rudimentary techniques (such as slash-and-burn agriculture) and low productivity. Land concentration and lack of tenure regularization contribute importantly to rural poverty in Piaui. Land distribution in Piaui is highly unequal, with the Gini coefficient in excess of 0.85 and increasing. Family farms comprise 90.0 percent of the rural landholdings in the state, but holds just 39.5 percent of the agricultural areas. The average area of family farming landholdings equal 17.0 hectares, whereas the average area of non-family farming landholdings equals 233.2 hectares. A share of 60.7 percent of the landholdings in the state has an area smaller than 10 hectares and they hold only 3.1% of the total agricultural area. Meanwhile, a proportion of 0.5 percent of the landholdings has more than 1,000 hectares and hold 35.1 percent of the total agricultural land. The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) The small-scale agriculture often takes place in non-titled land areas and relies on outdated techniques and the high incidence of uncertainty and conflicts in land affect the most the security and the livelihood of the vulnerable. In spite of the progress made in the past 10 years, land titles are still insecure in Piaui. In 2006, only 53 percent of the family farmers and 62 percent of the non-family farmers held secure land titles and the lack of land title has significant socioeconomic implications. Land tenure insecurity is especially harsh for poor communities living in public lands (including Quilombola settlements and smallholders engaged in subsistence family agriculture), because their livelihoods continue to be heavily reliant on the lands which they are at risk of losing if their occupation is not regularized. It is estimated that there may be nearly 200 traditional Afro-descendent communities in the state of Piaui. They may comprise more than 10,000 families, who traditionally occupy an area of approximately 670,000 hectares. Nevertheless, the overlap with other land categories is not clear and there are just five quilombola communities already been regularized. They occupy an area of 21,215 hectares (0.1 percent of the state territory). Prioritized quilombola communities are the most vulnerable group among the rural poor. Poverty is also strongly related to water scarcity, which increases the vulnerability of poor rural families – particularly those living in the drought prone areas of the semi-arid region – to extreme climate events and has led to an increasing of conflicts over water uses due to the lack of clear regulation and allocation of water rights. Poverty hits harder women rural producers, who are taking an increasing productive role in rural areas, but remain constrained to unpaid work or low profitable sectors and activities in spite of a reversed gender gap in education attainments. Gender gaps in income remain high; gender-based violence is on the rise; and the state lacked till recently the institutional governance framework needed to promote gender-smart policies, foster women s empowerment and agency and overcome gender imbalances. Combining investments for productive inclusion, sustainable agriculture, and efficient allocation of natural resources, and secure land tenure, the Project will likely contribute to a reduction in poverty and an increase in the adaptive capacity of poor small farms to deal with climate variability and extreme climate events because it will promote livelihood diversification, enable the adoption of new technologies and increase access to credit and financing lines, technical assistance for subsistence family farmers. A priority focus on women’s productive inclusion and rights may also contribute to gender equity. Finally, the activities to be supported in the education and health sectors are targeted to ensure that the primary beneficiaries are the poor. Water scarcity and long drought periods are among the major hurdles for the Piauí State’s population welfare improvement. 5. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM Alberto Coelho Gomes Costa, Senior Social Development Specialist Ana Luisa Gomes Lima / Augusto Ferreira Mendonça, Environmental Specialist SAFEGUARD_TABLE 6. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) The Project was classified as Category B, given the nature and scale of the investments, which do not present potential to cause significant adverse environmental and social impacts. The expected environmental and social impacts are limited in scope, localized, and temporary. Component 2 (technical assistance to strengthen the Borrower’s public management) and Subcomponent 1.3 (Expanding the registration of groundwater users) involve, mainly, technical assistance and institutional strengthening, (e.g. capacity building), of the state public administration, with limited social and environmental implications. Subcomponent 1.1 (Improving retention in public secondary education) and Subcomponent 1.2 (Expanding access to health care for patients with chronic diseases) may include small civil works to adapt, expand or build small health clinics, as well as refurbish existing secondary schools. The environmental impacts of these works are also small and localized, and are expected to occur in land currently owned and occupied by the government entities, inside urban areas. Environmental Assessment (OP) (BP 4.01) Yes The environmental assessment concluded that Subcomponent 1.4 (Strengthening real property rights) is expected to cause overall environmental and social benefits, as it seeks to promote land tenure regularization, improving the welfare of rural communities and the preservation of natural habitats. Subcomponent 1.5 (Strengthening participation of rural family farmers in rural productive value chains) is limited to small scale and low impact activities, promoting the dissemination of environmentally sustainable practices, resulting in minor impacts and risks to the environment. Additionally, supported rural development activities are limited to small scale and low impact activities, promoting the dissemination of environmentally sustainable practices. The project may include small civil works to adapt, expand or build small health clinics, as well as refurbish existing secondary schools. The environmental impacts of these works are also small and localized, and are expected to occur in land currently owned and occupied by the government The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) entities, inside urban areas. Originally, the client prepared an Environmental and Social Management Framework (ESMF), including an environmental and social impacts assessment, a resettlement policy framework, and a simplified pest management plan, to provide guidance on potential issues that could arise during Project implementation. The ESMF scope was defined with the Bank Safeguards specialists’ support, and includes mitigation measures, to avoid potential social conflict that could result from project activities. The ESMF comprises an environmental management plan for land regularization, income generation activities and health clinics development, and an analysis of economic or social impact that the project activities might have on vulnerable groups, traditional communities or poor rural communities. The revised ESMF incorporates a more robust section on the social impact assessment and a special section and an annex on traditional communities and how they will participate in project activities. According to the Social Assessment included in the ESMF, there is a wide range of traditional communities in Piaui's territory, among which the following stand out: quilombola communities (in total, 83 communities certified by Fundação Cultural Palmares); the self- declared indigenous (in the municipality of Piripiri there are the peri-urban nuclei of Itacoatiara, Tucuns and Colher de Pau and the rural communities of Canto da Várzea and Oiticica; in the municipality of Lagoa de São Francisco, the Aldeia Nazaré; in the municipality of Queimada Nova , the community of Serra Grande; the Bom Jesus community, the Barra do Correntina community, the Baixa Grande do Ribeiro community, the Morro D'�gua community; the Currais community, the Pirajá and Laranjeira communities; and the Santa Filomena community, the communities. Sete Lagoas and Vão de Vico); and the extractive, riverside and brejeira communities in the semi-arid regions of the Caatinga and the Cerrado. These traditional communities have the The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) characteristics that are common to regional family farming: economic dependence on extractive and agricultural activities based on various seasonal sources of income (a combination of small family- based crops with large areas of collective use for collection, hunting and pastoral activities) focused primarily on family consumption and exploited according to a deep knowledge of natural cycles through simple technologies with low environmental impact. Its economic assets are reduced; the household and the relationships of kinship, compadrio and neighborhood are essential for economic life and for the reproduction of families as units of production and consumption. In other words, they are located relatively to the margin of the market economy and are organized in a production system based on the work of family labor, on the intensive and supposedly low environmental impact use of natural resources and oriented towards subsistence. The ESMF also includes guidance for the construction works, addressing construction sites management criteria, waste disposal measures, and overall supervision and oversight measures. Additionally, the client prepared a health waste management plan for the clinics future operation, and a specific environmental management plan for the rural productive chains, Progere II. The ESMF Report was early disclosed and distributed through the SEPLAN-PI website, for consultation with key stakeholders in June 2014. The referred ESMF report was submitted to the Bank shortly after that. The ESMF was updated in August 2015 to include provisions related to two additional production chains to be supported by Progere II, manioc farming and manioc flour production, and backyard horticulture. The two new production chains do not trigger additional environmental safeguards and do not change the project category. The Updated Report was disclosed for consultation and submitted to the Bank. The restructuring added a new sub-component, supporting the emergency response to COVID-19 pandemic, notably testing campaigns. The new The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) sub-component demanded adjustments in the ESMF, complementing the EHS provisions for health facilities, considering the World Bank Covid template for preparing Infection Control and Waste Management Plans (ICWMP), notably the measures related to emergency response plan (commensurate with the risk levels posed by the supported activities), institutional arrangement and capacity building, monitoring and reporting. The ESMF Report was updated again during project restructuring and now comprises (i) an environmental management plan for land regularization, income generation activities, complementary EHS requirements for the health clinics development and Covid-19 response activities, (ii) an analysis of economic or social impact that the project activities might have on vulnerable groups, traditional communities or poor rural communities and (iii) a protocol defining measures to prevent the exposure of project workers and communities to Covid-19 according to the World Bank and WHO guidelines. It was disclosed through the SEPLAN-PI website in November 2020. The Project relies on the State Network of Sectoral Ombudsman Offices – coordinated by the General Ombudsman Office as its Grievance Redress Mechanism avoiding the unnecessary duplication of structures and contributing to the strengthening of this network. The General Ombudsman Office (ruled by the robust Brazilian legislation on Access to Information, transparency and rights of users of public services that require the establishment of Ombudsman Offices in all public agencies at the Federal, State and Municipal level). Requests of information and complaints can be registered through the following channels: (a) website: www.ouvidoriageral.pi.gov.br; (b) E- mail: atendimento@ouvidoriageral.pi.gov.br; (c) FAX: (86) 3216-4473; (d) Postal Box: 131; (e) three- digit toll-free phone line: 162; (f) the Ombudsman Complaint Boxes placed in several state agencies and in the places of events that convene large audiences; and (g) in person at the Ombudsman Office head-quarter (Praça Marechal Deodoro, 790 Centro - Teresina – PI). Additionally, all implementing agencies have their own sectoral The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) Ombudsman Offices, which are integrated with the General Ombudsman Office. The latest provides periodical reports on complaints related with the project. Performance Standards for Private Sector No Activities OP/BP 4.03 Overall, the Project may generate positive impacts on natural habitats and protected areas. The land regularization program will promote the preservation of the permanent protection areas and legal reserves, as the restoration of degraded areas in private properties. OP 4.04 was triggered and the ESMF included criteria and management procedures to avoid potential impacts on sensitive Natural Habitats (OP) (BP 4.04) Yes biodiversity areas and protected areas. The ESMF also has specific procedures for the land regularization program, aiming to improve the preservation of natural corridors, fragile ecosystems and areas with relevant biodiversity. Additionally, Progere II Environmental Management Plan has specific guidelines, looking to mitigate negative impacts on natural habitats. The Project does not support any activity that may cause negative impacts on the health and quality of forests. Therefore, OP 4.36 – Forests - was triggered on a precautious basis, considering the potential induced impacts of the land regularization activities. Actually, the Project will contribute to the conservation and restoration of the Cerrado and Caatinga biomes, avoiding deforestation of natural vegetation in parts of private rural holdings (all land on steep slopes, along watercourses (up to a given distance from Forests (OP) (BP 4.36) Yes the margin) or in the vicinity of springs, protecting environmental services and values of natural vegetation. The ESMF considers the requirements of OP/BP 4.36 whenever restoration and plantation activities are being planned. According to the new Forest Code, landholders have to request previous authorization from the State Environmental Agencies to use fire, where this practice is a part of agroforestry and forestry production system. Additionally, the Forest Code states that indigenous people and traditional communities do not have to request authorization The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) to use fire as agriculture practice. It also determines that Federal, State and Municipal Governments need to prepare and keep updated contingency plans to combat forest fires, whereas the Federal Government needs to develop the National Fire Management Policy, which includes the use of burning as well as combat and prevention of forest fires. The proposed Project will assist prevention activities, promotes training and capacity buildings activities and focus on wild fire prevention in the Cerrado biome on private landholdings. The project will not support the purchase or increased use of pesticides and other agricultural chemicals as defined under this Policy, however, some of the agricultural activities selected for project support may make use of these substances. The ESMF adopted checklists for screening sub-projects/activities and negative lists for exclusion activities with potentially high negative impacts. Additionally, the ESMF also included a simplified Pest Management Plan Pest Management (OP 4.09) Yes addressing the specific environmental impacts and health & safety aspects of the production activities supported by PROGERE II, specifically cashew plantation, manioc farming and horticulture. The Plan provides guidance for reducing the environmental impact of using pesticides according to the principles of OP 4.09, and recommends the adoption of integrated pest management and agro-ecological practices where possible. The theme was, further, detailed in the Progere II Environmental Management Plan. The Project will not support land regularization or any other type of activity in areas with known physical cultural resources, but the Op 4.11 was triggered on a precautious basis, due to the fact that Piaui has relevant archeological sites, such as Physical Cultural Resources (OP) (BP 4.11) Yes the National Park Serra da Capivara and the National Park Serra da Confusão. The ESMF has checklists for screening sub-projects/activities and negative lists for excluding activities and land regularization, in areas with physical cultural resources (mainly archeological sites) occurrence. Additionally, the ESMF has procedures for The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) screening any known cultural property in the Project area and incorporate ‘chance find’ procedures in the event that culturally significant resources are discovered during the Project implementation. The ‘chance find’ procedures were defined in accordance with IPHAN and the Bank requirements. OP 4.10 Indigenous Peoples is not triggered because there are no evidences of the presence in the area of intervention of the Project of distinct, vulnerable, social and cultural groups possessing the following characteristics in varying degrees: (a) self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; (b) collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories (c) customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and (d) an indigenous language, often different from the official language of the country or region Bibliographic research on secondary sources and a number of consultation meetings (between March Indigenous Peoples (OP) (BP 4.10) No and September 2019) with groups who self- identify as members of distinct indigenous cultural groups (but do not fulfill the four criteria set by OP 4.10) have been carried out as part of a social assessment to decide on the triggering or not of OP 4.10. The undertaking of this social assessment was driven by the acknowledgement of (a) the ongoing processes of ethnogenesis lived by Tabajara, Cariri and Gamela communities in the State of Piauí and (b) the proposal of a state law on their recognition by the State of Piauí. According to this law, local communities and social groups will be acknowledged by the State on exclusive basis of self-identification (not meeting the four criteria considered for triggering OP 4.10). These groups may benefit from project supported activities as part of a strategy for attendance of disadvantaged, vulnerable and traditional communities, which addresses the findings of the consultations carried out and includes the carrying The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) out of an anthropological study on selected traditional communities (including the self- identified Indigenous Peoples groups). OP 4.12 is triggered in a precautionary mode because activities supported by the project under Subcomponent 1.3 (Expanding land regularization for small farmers and quilombola communities) and, particularly those associated with regularization of Quilombola lands may lead to adverse impacts related with the involuntary resettlement of dwellers who do not identify themselves as Quilombolas. Although these situations are expected to be minor, the client has prepared an Resettlement Policy Framework (RPF), aligned with both the relevant State and Federal Legislation and the World Bank Operational Policy on Involuntary Resettlement (OP 4.12). Although some activities under Sub-component 1.4 (Strengthening rural productive chains to increase income of poor farmers) may require land acquisition, these areas will be acquired through voluntary land donation and but this type of transaction in itself also does not require the Involuntary Resettlement (OP) (BP 4.12) Yes triggering of the Policy. The ESMF and RPF define the criteria for ensuring and documenting voluntary land donations, including the evidences that the supported activities could technically be implemented in another location and the donators were aware they do not need to donate the land and freely agreed to donate the land for the community sub-project without compensation. OP 4.12 does not apply to activities such as those proposed under Sub-component 1.5 (Expanding the registration and allocation of water resources), because it “does not apply to regulations of natural resources on a national or regional level to promote their sustainability, such as watershed management, groundwater management, fisheries management, etc� (OP 4.12, footnote #8). This exemption holds, for example, when the program imposes restrictions on the use of natural resources, such as limitations on pumping from aquifers. Finally, the land areas required for implementing The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) and making operational five specialized centers for chronic diseases, under Sub-component 1.2 (Expanding access to healthcare for patients with chronic diseases) have been previously identified, assessed with regards to land tenure rights and this screening exercise concluded that they (i) are stately owned and (ii) free of occupants. The ESMF/RPF bring the list of areas selected for building these health facilities, their localization and land tenure status. In any way all activities are screened to ensure whether they need or do not land acquisition or have or not adverse impacts related with restriction of access to natural resources as stated in the Project’s RPF. The Project relies on the State Network of Sectoral Ombudsman Offices – coordinated by the General Ombudsman Office as its Grievance Redress Mechanism avoiding the unnecessary duplication of structures and contributing to the strengthening of this network. The General Ombudsman Office (ruled by the robust Brazilian legislation on Access to Information, transparency and rights of users of public services that require the establishment of Ombudsman Offices in all public agencies at the Federal, State and Municipal level). Requests of information and complaints can be registered through the following channels: (a) website: ; (b) E- mail: atendimento@ouvidoriageral.pi.gov.br; (c) FAX: (86) 3216-4473; (d) Postal Box: 131; (e) three- digit toll-free phone line: 162; (f) the Ombudsman Complaint Boxes placed in several state agencies and in the places of events that convene large audiences; and (g) in person at the Ombudsman Office head-quarter (Praça Marechal Deodoro, 790 Centro - Teresina – PI). Additionally, all implementing agencies have their own sectoral Ombudsman Offices, which are integrated with the General Ombudsman Office. The latest provides periodical reports on complaints related with the project. This policy is not triggered since the project will Safety of Dams (OP) (BP 4.37) No not finance any dams nor will it rely on the operations of existing dams. The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) This policy is not triggered since the project will Projects on International Waterways (OP) No not affect any international waterways as defined (BP 7.50) under the policy. This policy is not triggered as the project will not Projects in Disputed Areas (OP) (BP 7.60) No work in any disputed areas as defined under the policy. KEY_POLICY_TABLE II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. SUMMARY OF KEY SAFEGUARD ISSUES 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. The ESMF concluded that only subcomponents 1.2: Expanding access to healthcare for patients with chronic diseases, .3: Expanding land regularization for small farmers and Quilombola communities, and 1.4 Strengthening rural productive chains to increase income of poor might generate environmental impacts. The project does not entail any potential large scale and/or significant irreversible negative impacts, and the only identified potential negative environmental impacts are due to the construction of small clinics, refurbishment of schools, and the small-scale income generation activities, such as cashew plantation and manioc farming. The small works may cause limited and temporary impacts, including waste generation and disposal, dust emission, noise pollution, water use and wastewater discharge, potential contamination of surface and underground water, besides occupational health and safety risks inherent to the construction activities. The rural income generation activities may also generate localized impacts, including conversion of habitats by removing existing vegetation for plantations, soil erosion, dust emission, water use and potential contamination of surface and underground water. Mitigation of the impacts will be achieved based on country system requirements and the ESMF. However, the expected environmental benefits of the land tenure regularization, would greatly surpass such negative impacts. The expected environmental benefits from land regularization are significant. The regularization process takes into account diverse environmental requirements defined by the new Forest Code. Legal reserves in Piauí encompass 30% for the properties in the Cerrado Biome and 20% in the Caatinga Biome, and their definite location must take into consideration regional environmental aspects. The land regularization environmental management framework includes procedures that can generate cumulative positive impacts to preservation of natural corridors, fragile ecosystems and areas with relevant biodiversity. Land titles are key for deforestation control, allowing the demarcation of legal reserves and permanent protection areas, as enabling the identification of the persons accountable for illegal deforestation activities. The alternative to land regularization is a “no action� scenario, with continuity of the current situation. At this time, protected areas within private properties are not recognized, neither managed, properly, by land occupants. Additionally, the “no action scenario� favors the increasing degradation of important Biomes, such as the Cerrado. Eligible activities for the Sub-component 1.4 Strengthening rural productive chains to increase income of poor farmers is limited to six production chains: cashew plantation, bee-keeping, goat raising, fruit processing and small handicraft production, manioc farming and manioc flour production, and backyard horticulture, all in small scale operations and with minimum environmental impacts. The ESMF uses checklists for screening investment proposals The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) and negative lists for excluding activities with potentially high negative impacts. The GovPi prepared a specific environmental management plan for this sub-component, which details the Progere II environmental procedures. Environmental impacts related to the refurbishment/expansion of secondary schools are limited and localized and can be effectively managed and mitigated. Environmental impacts associated with the subcomponent 1.2: Expanding access to healthcare for patients with chronic diseases are restricted to the construction and operation of five small clinics. The clinics will be constructed in urban areas, with minimum or negligible marginal impacts due construction. The Client prepared a Health Waste Management Plans (PGRSS) for the clinics, addressing health waste handling and disposal, applicable to the Covid-19 testing waste management and disposal. The ESMF was updated to incorporate protocols to prevent the exposure of project workers and communities to Covid-19 according to the World Bank and WHO guidelines. It was disclosed through the SEPLAN-PI website in November 2020.. The ESMF and the RPF also concluded that only Sub-Component 1.3: Expanding land regularization for small farmers and quilombola communities might generate social impacts related with involuntary physical displacement of populations. People living within Quilombola territories may not identify themselves as Quilombolas and may not want their landholdings be included in the collective land title conferred to the Quilombola community. As this situation might represent a source of potential social conflict, Brazilian and state legislation on Quilombola land regularization ensures that: (i) these people have full opportunity to assert their rights over the lands they hold within the claimed Quilombola Territory; (ii) private property can be separated from Quilombola communal land if agreed upon with the community; (iii) full compensation for privately owned land and facilities when there is no such agreement with the community, with a preference to land for land compensation in the situations involving small landholders (Presidential Decree 4887, November 20, 2003, and Piauí State Law 5995, August 1st, 2006). Additionally, potential social conflicts due to activities for Quilombola land regularization in this Project are less plausible because the Project will only regularize the claims of Quilombola communities settled in publicly owned areas. Positive social impacts have been associated with the different Components and subcomponents. Land regularization might (i) increase land tenure security for small landholders, traditional communities and poor and socially vulnerable rural populations, (ii) reduce land conflicts due to the superimposition of claims and fraudulent land titles, and (iii) expand the market opportunities for their produce. Sustainable Production Practices might also contribute to strengthen family farming and production chains by overcoming barriers to access to technical assistance and to introduce new technologies, leading to income generation and contributing to poverty reduction. These impacts on family farming might also contribute to gender equity because (a) land titles will be issued in name of the family s male and female household heads, (b) most of the prioritized production chains intensively engage women groups, and (c) women groups will be a priority target of these interventions. Activities in the education sector might contribute to retain young people (male and female) in secondary schools and to improve their skills and qualification for accessing the formal job market. Given the strong association between low educational attainments and poverty in Brazil, these activities focused on the public education system and on municipalities with high poverty levels might also have a pro-poor impact. Positive social impacts are also expected from activities envisaged on the health sector as they will mostly address the neglected diseases which are deeply associated with poverty. Eventually, the ESMF concluded that activities envisaged under Subcomponent 1.5 Expanding the registration and allocation of water resources might not generate negative environmental and social impacts insofar as water users register and better allocation of water resources will be preceded by outreach, information and awareness raising campaigns engaging multiple stakeholders. Additionally, these activities might have pro-poor effects because they might contribute to reduce inefficient water use by large producers as well as to increase access to water rights by subsistence and small producers leading to increases in their productivity, incomes and coping capacity to deal with The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) water scarcity. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. The ESMF did not identify any negative potential indirect and/or long-term impacts due to anticipated future activities in the project area. The Project shall produce long term positive, indirect and cumulative impacts on the environment, as the land regularization program favors the recovery and protection of the margins of water bodies, as well as the native native vegetation within the APPs and RLs. The delimitation of RLs, looking to improve the local ecosystems sustainability (e.g. improvement of fauna corridors), shall result in positive environmental cumulative impacts. 3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. The ESMF did not identify Project implementation alternatives that could avoid or minimize negative impacts. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. An Environmental and Social Management Framework (ESMF) – including a social impact assessment – and a Resettlement Policy Framework (RPF) have been prepared by the client in compliance with the World Bank’s Operational Policies triggered by this operation. The ESMF was updated to incorporate protocols to prevent the exposure of project workers and communities to Covid-19 according to the World Bank and WHO guidelines. It was disclosed through the SEPLAN-PI website in November 2020 The State of Piauí has some experience with Bank Safeguards and has at its disposal the gamut of state environmental agencies to analyze, monitor and supervise environmental safeguards. The team assessed the Client’s institutional capacity to implement the Safeguard policies, concluding that institutional arrangements and technical assistance is necessary. The Project involves several State Secretariats and agencies under the coordination of SEPLAN. A Project Implementation Unit was established under SEPLAN, including an Environmental and Social Safeguards Specialist who is responsible for coordinating with the executing State Secretariats and ensure compliance with the safeguards Operational Policies of the World Bank triggered by the project and the principles and procedures consolidated in the Project’s ESMF and RPF. Considering the activities supported by the project and their location, it is expected that land acquisition and potential adverse impacts considered under OP 4.12 may only occur in the processes of regularization of Quilombola territories (which may have people who do not see themselves as Quilombolas inside their boundaries) or through voluntary donation by beneficiaries of the rural development subprojects supported by Progere. Activities envisaged in the Education and Health sectors have been screened and they will be exclusively located within lands already owned by the state or municipal governments. The implementation of the mitigation measures envisaged under the Project’s ESMF do not require complex institutional provisions. SDR has a long experience with Rural Poverty Projects (PCPRs) funded by the Bank, and do not need major The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) adjustments to comply with Safeguards policies. Considering the activities under Progere, the ESMF recommends the hiring two environmental experts, to support the existing staff. SDR also hired experts on traditional communities and gender issues. Additionally, the Technical Assistance component of the Project supported the strengthening of the State’s General Ombudsman Office, which is used as the Project’s GRM to avoid the unnecessary duplication of structures. During the Project preparation, the GovPi issued a Decree integrating the processes of INTERPI and SEMAR, and establishing the State Geo-processing Laboratory (CGEO), with the goal of offering high quality cartographic and land use information, to support the environmental and land regularization programs. The technical assistance component will support the Client on staff training, as the purchase of equipment, software and satellite images, for the CGEO implementation. 5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders include: principals, teachers and students of state public schools; health workers and users of public health services; family and small-scale farmers, and rural labor unions; Quilombola communities and statewide Quilombola organizations; other traditional communities from the Cerrado biome; municipal authorities and staff of state and federal agencies. Stakeholders have broadly supported the activities included in the Project. Some of them expressed concerns about the ability of the state – due to weak institutional capacity – to implement the activities and achieve the expected results on the Project s timeframe. The strong and broad technical assistance component was devised to include the activities needed to strengthen the state’s institutional capacities. An Environmental and Social Management Framework (ESMF) – including a social impact assessment and a special section and an annex on traditional communities and how they will participate in project activities – and a Resettlement Policy Framework (RPF) have been prepared by the client in compliance with the World Bank’s Operational Policies triggered by this operation. The ESMF and the RPF were available for public consultation in the website of the Government of Piauí from June 13 to July 15, 2014. A public consultation meeting was held in Teresina at June 24, 2014, focusing on the potential environmental and social impacts and the mitigation measures identified and proposed for the Project. The meeting was widely advertised and more than one hundred people and institutions have received invitation letters. Forty people – representing state agencies, municipalities, civil society organizations, scholars, producers groups and public servants – have taken part on this meeting. Minutes and photographic registers of the meeting have been prepared. Inputs provided through the website and in presence consultation processes have been incorporated to the ESMF and the RPF as appropriate. DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS ENV_TABLE Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission for disclosure 22-Oct-2015 03-Nov-2015 The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors “In country� Disclosure Country Date of Disclosure Brazil 03-Nov-2015 Comments RESETTLE_TABLE Resettlement Action Plan/Framework Policy Process Date of receipt by the Bank Date of submission for disclosure 22-Oct-2015 (original) 23-Oct-2015 12-Nov-2020 (restructuring) “In country� Disclosure Country Date of Disclosure Brazil 23-Oct-2015 Comments PEST_TABLE Pest Management Plan Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank Date of submission for disclosure 13-Jun-2014 19-Jun-2014 “In country� Disclosure Country Date of Disclosure Brazil 19-Jun-2014 Comments The Pest Management Plan was disclosed as part of the Project's Environmental and Social Management Framework. The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) COMPLIANCE_TABLE C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL EA_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review Yes and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the Yes credit/loan? NH_TABLE OP/BP 4.04 - Natural Habitats PM_TABLE OP 4.09 - Pest Management Does the EA adequately address the pest management issues? Yes Is a separate PMP required? No If yes, has the PMP been reviewed and approved by a safeguards specialist or PM? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? PCR_TABLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse Yes impacts on cultural property? IR_TABLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process Yes framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Practice Yes Manager review the plan? Is physical displacement/relocation expected? No Is economic displacement expected? (loss of assets or access to assets that No leads to loss of income sources or other means of livelihoods) The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) FO_TABLE OP/BP 4.36 - Forests Has the sector-wide analysis of policy and institutional issues and constraints Yes been carried out? Does the project design include satisfactory measures to overcome these Yes constraints? Does the project finance commercial harvesting, and if so, does it include No provisions for certification system? PDI_TABLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for Yes disclosure? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups Yes and local NGOs? ALL_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the Yes monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal Yes documents? III. APPROVALS Marcelo Becerra Task Team Leader(s) Daniela Pena De Lima The World Bank RESTRUCTURING ISDS Piaui: Pillars of Growth and Social Inclusion Project (P129342) Approved By Practice Manager/Manager Emanuela di Gropello . Note to Task Teams: End of system generated content