The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 10/26/2021 | Report No: ESRSA01678 Oct 26, 2021 Page 1 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Sudan AFRICA EAST P176870 Project Name SECOND Sudan Sustainable Natural Resources Management Project Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Environment, Natural Investment Project 10/14/2021 11/22/2021 Resources & the Blue Financing Economy Borrower(s) Implementing Agency(ies) H.E Jibril Ibrahim Ministry of Agriculture and Mohamed Forestry Proposed Development Objective Public Disclosure to increase the adoption of sustainable land and water management practices in targeted landscapes and to increase capacity for managing environmental and social risks. Financing (in USD Million) Amount Total Project Cost 50.00 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] Sudan has five major ecological zones from north to south, namely desert, semi-desert, low-rainfall savanna, high- rainfall savanna, and mountain vegetation. The diverse ecological zones have allowed the country to support different food, cash, and industrial crops. In addition, Sudan has rich renewable natural capital comprising forests, rangelands, arable lands, water resources, wildlife and biodiversity. Forests and rangelands cover 35.6% of Sudan’s total area. These resources, along with the ecosystem and environmental services they provide, represent a major contribution to the national economy and local livelihoods. Oct 26, 2021 Page 2 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) Sudan has a wide range of environmental legislation, but implementation is weak. Sudan was among the first African countries to formulate comprehensive environmental legislation. There are now more than 150 laws and regulations that govern the country’s environment and natural resources, covering key issues such as land tenure, rangelands, forests, water, and protected areas. Some aspects of these laws and regulations, i.e., related to institutional mandates and enforcement, are now out of date given the recent government transition and institutional changes. The Environment Protection Act (EPA) 2001 represents an ‘umbrella’ for many such laws. However, the enforcement and implementation of environmental and natural resources legislation has been very weak due to: (i) a lack of financial resources and equipment; (ii) insufficient technical capacities; (iii) weak institutional arrangements, including an overlapping and unclear set of mandates; (iv) lack of or weak land-use planning; (v) insufficient information and updated data; and (vi) weak community involvement. Furthermore, federal, state and local governments are overwhelmed by the scale and complexity of the challenges confronting sustainable environmental and natural resources management. The project follows the full re-engagement of Sudan with the World Bank. The proposed project directly supports and aligns with several objectives and cross-cutting themes of the World Bank’s Country Engagement Note (CEN) for Sudan (FY21-FY22). The CEN acknowledges that Sudan’s natural resources are crucial economic assets and as an agrarian economy, climate change poses significant impacts. It contributes to CEN-Focus Area 2: (contributing to a renewed social contract) particularly with regards to support for rural development and for building resilience (objectives 2.2 and 2.3 of the CEN). As the economy grows, and WB and development partners implement their re- engagement plans, there will be a pressing need to strengthen and expand the country’s capacity to manage environmental and social risks. The proposed project will support the Government of Sudan’s efforts to strengthen its Public Disclosure institutional and organizational capacities for environmental management. The proposed project aims to scale-up geographical coverage of the SSNRMP by targeting five additional climate- vulnerable states namely, Red Sea, Sennar, Blue Nile, West Kordofan, and South Kordofan. Selection of specific project sites as well as tailoring of specific project activities will be carried out during project preparation. The SSNRMP2 will also continue providing institutional support in the ongoing SSNRMP phases across the eight states (Kassala, White Nile, Gezira, Northern State, River Nile, North Kordofan, Gedaref, and Khartoum). The project has three integrated components: Component 1: Strengthening the Institutional and Organizational Capacity for Environmental and Social Management System (Indicative: US$6 million): This component will enhance the functionality of key institutions involved in managing natural resources such as the Higher Council for Environment and Natural Resources (HCENR ) and Environment Councils at the State levels. This component will support the government to clearly define institutional mandates/divisions of responsibility, vertically between Federal and State Level entities, and horizontally between different sectoral agencies. Key activities under this component will include: (i) provision of investment packages for Environmental Councils at federal and state levels to enable them to undertake the full range of functions for which HCENR is responsible, including on environmental and social risk management and compliance, and environmental and natural resource sustainability. Packages will include (i) environmental and social monitoring equipment, vehicles, communications equipment, office equipment and office renovations; and (ii) technical assistance support for the development and piloting of training packages for HCENR and state level Environment Council staff, with a focus on CBNRM, environmental and social risk management and compliance monitoring. Interventions under this component Oct 26, 2021 Page 3 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) will improve the quality of environmental and social monitoring and enhance climate resilient natural resource management options. Component 2: Community-based Sustainable Management of Natural Resources and Biodiversity Conservation, and Sustainable Livelihoods (Indicative: US$38 million): This component will focus on soil and water management as well as biodiversity conservation activities through the gazetting of forest reserves; restoration of native vegetation by reforestation, enrichment planting, natural regeneration, sand dune stabilization, effective implementation of sustainable forest and rangeland management plans, and establishment and rehabilitation of water harvesting and storage facilities, thereby also providing climate change mitigation and adaptation benefits. Activities under this component will also include supporting biodiversity conservation and improving inclusive protected area management in selected states with a focus on biosphere reserves. The project, through this component, will carry out situational analysis and baseline study to inform community-based management planning, as well as support community-based assessment of potential areas for forest restoration. The component will scale-up successful and proven models for CBNRM developed and piloted under the SSNRMP and expand them into targeted areas across the additional 5 states. Specific areas of CBNRM’s activities would include: (i) collaborative forestry management, (ii) community soil and water conservation practices, (iii) participatory rangeland management (iv) participatory development and implementation of integrated land management plans, (v) community-based fishery and mangrove forest management, (vi) demonstration agro-forest practices through farmer field schools and (vi) development of SLWM extension support that suit local social and environmental contexts. The proposed CBNRM activities will be implemented through village development committees (VDCs). In targeted sites where there are existing VDCs, the Public Disclosure project will work through them and support their development, and in areas where there are no VDCs, the project will support the establishment of new VDCs. Support to the VDCs will include training on business development, entrepreneurship, microfinance, craft skills, leadership, nursery techniques, as well as support the organization of communities in associations (cooperatives) around specific NRM livelihood initiatives. The component will also seek to invest in activities that generate green jobs based on activities linked to sustainable and climate resilient natural resource and environmental management, and from strengthening and building existing value chains for natural resource commodities and products. Such activities can encompass value addition through crop processing, bee keeping, establishment of nurseries, poultry production, sustainable fishing, wood and non- timber forest production, and community management of grazing areas and livestock corridors. This will also include introduction of improved stoves to reduce pressure on tree biomass. Furthermore, the established community nurseries will provide seeds and seedlings to support improving and recovering degraded rangelands and forests. This component, throughout its all activities, will aim to promote social cohesion and empower women and youth in targeted areas, especially in green job activities. Building on the REDD+ Private Sector Engagement Strategy report and the Forest Landscape Restoration Assessment studies, this component will endeavor to inform the private sector in the development of sustainable value chains of natural resources commodities and products, as well as support the development of a guidance framework for public-private investment in SLWM. This component, through various procurement methods, will finance technical assistance, training, investments, goods, works, services and operational costs related to the promotion of wider adoption of community-based NRM practices in arable land, forests and rangelands in the targeted communities. Component 3: Project Coordination, Management and Reporting (Indicative: US$6 million): This project intends to support project management at Federal and State levels, including financing for project staffing, operational costs and Oct 26, 2021 Page 4 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) monitoring, evaluation and reporting. The proposed project will follow similar institutional and implementation arrangements as the SSNRMP, with an expanded regional and state reach to cover the new five states (section C of the PAD provides more detailed information on the institutional and implementation set up). This component will also support impact evaluations of interventions to learn lessons that can be scaled up through subsequent phases of support. Activities under this component will help build MoAF and HCENR capacity for geospatial applications to strengthen environmental monitoring. D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] The proposed Second Sudan Natural Resources Management Project (SSNRMP2) aims to increase the adoption of sustainable land and water management practices in targeted landscapes and to increase capacity for managing environmental and social risks. Geographically, the SSNRMP2 will specifically scale-up geographical coverage of the Sudan's ongoing Sustainable Natural Resources Management Project by targeting five additional states—namely Red Sea, Sennar, Blue Nile, West Kordofan, and South Kordofan—which cover about 30.44% of the country’s total area. The project will also support diversifying livelihood opportunities based on value chains from sustainably managed natural resources. Institutional support will also be provided to federal and state-level institutions responsible for the state-management of natural resources and environmental risks. This will be in support of decentralized roles and mandates for environmental management. The SSNRMP2 will also ensure providing continuous institutional support Public Disclosure in the ongoing SSNRMP’s phases across the eight states (Kassala, White Nile, Gezira, Northern State, River Nile, North Kordofan, Gedaref, and Khartoum). Selection of specific SSNRMP2 sites, as well as tailoring of specific project activities/subprojects, will be carried out during project implementation. As the specific sites for the project are not yet identified, it is not possible at this stage to prepare site and activity specific environmental and social risk management measures. Hence, adopted a framework approach which will outline the principles, policy requirements and templates for screening (comprising questions relevant to determination of contribution of each subproject to cumulative impacts) and preparing site specific management plans based on the result of the screening procedure. Sudan’s land area is 1.88 million km2, of which 72% is desert and sparsely populated, with low-intensity pastoralism and pockets of gold mining. Central and southern parts consist of the semi-arid Sahel belt and humid savannah where most of the population live, and rain-fed and irrigated agriculture. Oil is produced in the Sahel. The west of the country is dedicated to rain-fed cultivation and pastoralism, where most of the gum Arabic is produced. Sudan has substantial freshwater resources; almost half of the Nile River Basin lies within its borders. It has significant but poorly developed groundwater reserves. It has also a diversity of plants, animals, forests, wildlife and habitats within diverse environmental systems which provide the basis for livelihood and sustainable social and economic development. The specific locations and salient features related to the proposed project’s intervention areas are briefly described as follows. Red Sea State (218,887 km2): It is located on the coast of the Red Sea and is named after it. It is characterized by sandy soils and vegetation that germinates only after rare rain showers. There are also some shrubs around waterways; and pastures are found on the fringes of seasonal valleys and around some oases. Also, the Red Sea hill area is characterized by a rich diversity of trees and plants. The Sudanese continental Red Sea coastline is also part of Oct 26, 2021 Page 5 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) the Red Sea State. Vegetation in these areas is sparse, consisting of scattered halophytes and grasses, and mangrove forests on the coast. Mangrove lagoons and channels are an important habitat for birds, animals and marine organisms including fish, crustaceans and mollusks, plankton, and phytoplankton. Sanganeb and Dungonab Marine Protected Areas were declared marine national parks in 1990 and 2005 respectively and World Heritage Sites in 2016. They form the nucleus of a national network representing the different habitats and biodiversity of the Sudanese coastal and marine environments and a strong base for ecotourism. Sanganeb Marine National Park is designed to protect a unique geological structure in which steep slopes rise more than 800 m from the sea floor; and it is the only widely recognized atoll in the Red Sea with pristine living reefs and populations of reef fauna, including commercially important fish stocks. The rest four of the states (West and South Kordofan, Sennar, and Blue Nile) are situated in an almost contiguous band in the south of the country, stretching from center of the country to the eastern border with Ethiopia. These states share many ecological and socioeconomic similarities, such as rainfall characteristics (they have higher and more reliable rainfall than much of the rest of the country), land degradation, decline of productivity, reduction in biodiversity, effects of climate change accompanied by socio-economic problems. Sennar (37,844 km2) and Blue Nile (45,844 km2) States: They fall under Savannah grasslands which occur at transition zones between semi-desert and forests where rainfall is too marginal for some tree species. This zone is characterized by mixed herbaceous non-woody vegetation including scattered trees and shrubs. Savannas are classified as either low-rainfall or high-rainfall. Low-rainfall savannas are again classified according to whether they occur in clay soil or sandy soil. Low-rainfall clay savannas cover the central plains of Sennar and Blue Nile states. Most Public Disclosure livestock, rain-fed and irrigated agricultural projects, as well as the gum belt, are situated in low-rainfall savanna. Irrigated forests. (e.g., Eucalyptus microtheca, the most widely planted exotic tree species) are found in the Blue Nile and Kordofan States. Sennar State hosts Dinder National Park, the largest reserved area. Sennar and Blue Nile cover 4.3 percent and 4.1 percent respectively from the country’s total arable land (i.e., around 68.2 million hectares of arable land, which makes up about 36.2 per cent of the country). West Kordofan (111,373 km2) and South Kordofan (158,355 km2) States: They fall under high-rainfall savannas, defined as receiving 800 mm or more annual rainfall, and are dominated by perennial broad-leaved trees. They are good for pasture and are dominated by the Baggara tribes during summer periods. The Nuba Mountains/Hills, an area located in South Kordofan, are characterized by a rich diversity of flora and fauna. Also, South Kordofan accounts for more than a third of Sudan’s total tree cover; almost 51 percent of the state is planted with trees. It is also home to a group of indigenous ethnic groups known collectively as the Nuba peoples. A freshwater lake called Lake Keilak is found in South Kordofan which supports fish, species and avifauna, while Lake Keilak. It hosts many migratory bird species as well. The Kordofan states cover about 35.6 percent of the country’s arable land. Sudan has been characterized by high prevalence of poverty and inequality with marked spatial disparities. According to the household survey from 2014/15, the national poverty level was 36.1%, with approximately 11.15 million Sudanese residents living in poverty. However, since 2014/15, Sudan has gone through severe economic and social problems that likely deteriorated the living standards of the vulnerable, underserved, remote, pastoral populations and that have been further intensified by the COVID19 pandemic. The escalating food prices that Sudan has been experiencing since 2018 contributed to the shortages of food and fuel. Early in 2021, the country has been experiencing increases in health and transport prices. These developments have likely impacted populations differently by region and socioeconomic status. Oct 26, 2021 Page 6 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) Those most vulnerable, including the IDPs, conflict-affected communities and refugees, are struggling due to high food prices, cash and fuel shortages and the disruption of basic services. The economic and social impacts of COVID- 19, climate change, desertification and locust infestation have further exacerbated existing natural resource conflicts and threaten the sustainability of a tenuous transitional arrangement. These hardships are not only threatening people's lives but create serious protection risks that give rise to violations and abuse, including gender-based violence. The country is comprised of a vast array of different ethnic groups, who practice sedentary agriculture and pastoralism and harmoniously lived together for a long period. The project covers five out of eighteen states in Sudan. It should pay attention to pastoralists who are on the move, and remote communities who may have unique sociocultural institutions. On the gender inequality index, the country is ranked 140th. GBV, including early marriage, and other widespread sexual abuse and exploitation, often are common and linked to the broader ethnic-related conflicts in the country, greatly affects women and girls’ education. Sudan remains essentially rural with the majority of the population dependent on the country’s natural resources for their livelihoods. It is estimated that agriculture (crops, livestock, and forestry) contributes 11% of GDP (with livestock accounting for 50% of the production) and employs more than 80% of the total population. Traditional farming accounts for 60-70% of the agricultural output and is largely subsistence production based on shifting cultivation and livestock rearing. Most of the inhabitants live by subsistence farming. 46.5% of the population in Sudan lives below the official poverty line of which 58% live in the rural area. FAO estimates that more than 9 million of Sudan’s Public Disclosure population is currently facing a food crisis due to increasing food shortages, food price hikes, high inflation, unemployment, and loss of livelihood assets and income sources. Throughout the country, millions are still unable to return to their places of origin because of the protracted armed conflict and other situations of violence. D. 2. Borrower’s Institutional Capacity The preparation and implementation of the proposed project (SSNRMP-2) is led by the Ministry of Agriculture and Forestry (MoAF), in close coordination with the Higher Council for Environment and Natural Resources (HCENR), the Ministry of Animal Resources (MAR), and the Ministry of Irrigation and Water Resources (MIWR). The MoAF and the HCENR have experience in implementing Bank supported projects including the SSNRMP (P129156, P161304, P169003) and Sudan REDD+ Readiness (P152322); and SSNRMP PCU has successfully managed E&S risks, retaining safeguards consultancy and resolving implementation issues, with the project maintaining Moderately Satisfactory performance rating. Whereas, the MAR and MIWR are new to preparing and implementing Bank supported projects. The MAR, MIWR, HCENR are new to the Bank’s Environmental and Social Framework (ESF). Besides, at the state level, given all five states have not been supported through the parent project, they are new to Bank support and requirements. The ongoing SSNRMP is being implemented in eight states with National and state level project coordination units including environment and social experts at the National level, focal persons at the state level supported by community mobilizers at a locality level. The proposed project (through component 3) will establish state Implementation Units in targeted states with implementation arrangements analogous to the SSNRMP, with an expanded national and state level reach to cover the new five states. The project will support the existing SSNRMP’s national PCU, which will be further equipped with additional staffing including three Assistant Project Coordinators. This will ensure coherence between the two projects while building on and strengthening the expertise of the national PCU, which includes environmental specialist, social specialist, civil engineering consultant, water management specialist, and Sustainable Land Oct 26, 2021 Page 7 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) Management consultant, among others. At the state SPIUs, there will be project coordinator, M&E specialist, environmental expert, social expert, and community mobilizer, among others. As needed, the project will call on the services of communication specialists and environmental experts; and the environmental expert and social expert for each state will be responsible for environmental and social risk management at the state level. In addition, the project will provide support to the steering committees at federal and state levels and will also help build MoAF and HCENR capacity for geospatial applications to strengthen natural resources and environmental management and monitoring. The project will extend support to further strengthen the geoportal system that is being developed under the ongoing SSNRMP to ensure that it covers adequate database of biophysical information and SLM interventions for better informed strategies. Overall, the E&S staffing, compliance monitoring and reporting, and capacity development requirements is included in the Environmental and Social Commitment Plan (ESCP). Based on E&S risk management capacity assessments, a capacity building action plan will be prepared as part of the Environmental and Social Management Framework (within 45 days after project effectiveness prior to implementing any activity under component 2 of the project (disbursement condition under Section III.B.1 of Schedule 2 to the Financing Agreement) and implemented accordingly. The implementing agencies, through the budget earmarked for component 3, will establish and maintain organizational capacity and competency to manage E&S risks of the project. The project (through component 1) will also carry out an assessment of the institutional setup for environmental and social risk management in Sudan to help address the gaps within the government’s system at the federal, State, and local levels (such as being led by the HCENR). Such an assessment is vital for streamlining the environmental issues Public Disclosure between the federal and state-level authorities and between the federal level institutions. It will also support the enforcement of the ESIA guidelines for 2021 and provide the needed technical and logistical support to enable the effective enforcement of the ESIA guidelines at the various levels. This is an added advantage to build the E&S risk management capacity of relevant stakeholders and ensure compliance with the project’s ESF instruments (ESCP, LMP, SEP, ESMF). The national Project Coordination Unit (PCU) with the state Project Implementation Units (SPIUs), the relevant government institutions and the steering committees at federal and state level shall support the implementation of the project and monitor compliance with the requirements of the WB ESF and the Project’s ESF instruments. The National PCU shall establish and maintain one environment expert, one social expert, and one Community Mobilization Officer for each State of the five targeted states. The PCU shall prepare environmental and social monitoring reports quarterly and annually and share them with the World Bank and those concerned as well. The Environmental Regulatory Agency will review and endorse site specific environmental and social risk management instruments (ESIA/ESMP) for subprojects and monitor compliance with the regulatory requirements. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial Environmental Risk Rating Substantial Oct 26, 2021 Page 8 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) The project’s environmental risk rating is substantial considering mainly the potential risks & impacts of public works subprojects (subcom. 2.1. Community-based Sustainable Management of Natural Resources and Biodiversity Conservation), livelihoods activities (subcom. 2.2), & the limited institutional capacity of the implementing entities for E&S management & assessment at all levels. Although the SSNRMP2 subprojects are aimed at enhancing the environment & increasing the productive capacity of the natural resource base, they also have the potential for adverse environmental impacts on human populations &/or the biophysical environment if their location, design or construction do not follow good environmental & social practices. Based on the experience of the previous phases of the SSNRMP, these environmental risks, without diligent implementation of the ESMF, could arise from site- specific impacts such as a) disturbance of environmentally sensitive areas or downstream ecosystems by soil-and- water conservation subprojects, despite being intended to improve the environment, might be badly designed or sited; b) salinization, water logging or pollution resulting from small-scale irrigation/water harvesting subprojects; & c) disruption of downstream ecosystems or water flows by water subprojects. Other risks & impacts include contamination of soil & water resources due to the use of agrochemicals in small-scale irrigation & agroforestry activities; water-borne and water-related diseases, including malaria, related to small dam and water harvesting schemes; community and occupational health and safety issues; and introduction of invasive species through reforestation/afforestation activities. Environmental risks from the livelihoods support activities (subcomponent 2.2) such as crop processing, beekeeping, nurseries establishment , poultry production, forage farming & feed processing, sheep & goat fattening, & community-based fishery activities arise from the potential cumulative effects of large numbers of households in the same area all undertaking the same activities. Furthermore, the expansion of the SSNRMP to almost the entire country and the limited institutional capacity for environmental and social management and assessment at all levels increases the environmental risk. The inclusion of capacity building Public Disclosure component for NRM system & the environmental and social regulatory bodies in this project would help to mitigate some of these risks. The preparation of a comprehensive policy framework that deals with sustainable forest and land use management may have direct and/or indirect environmental risks & impacts; thus, its preparation will be subjected to strategic environmental and social assessment (SESA) to evaluate the E&S aspects of the proposed policy; & a draft SESA is due by July 30, 2022. Thus, the terms of reference for: a) the preparation of the proposed policy framework (under component 1), b) the capacity building program (under component 1), & c) the project coordination & management (component 4) are required to incorporate the objectives & principles of the ESSs to ensure that activities and outputs are consistent with the WB ESF and satisfactory to the Bank. Overall, most of the impacts are expected to be site-specific, reversible & addressed through standard mitigation measures and compliance with the WB ESSs that apply to the project. To this end, the project has prepared the SEP & ESCP to be disclosed prior to project appraisal and will prepare an Environmental & Social Management Framework including rapid cumulative impact assessment, integrated pest management plan, security management plan, small dam safety guidelines, etc., prior to implementing any activity under component 2 of the project (disbursement condition under Section III.B.1 of Schedule 2 to the Financing Agreement), that comprise proportionate mitigation measures to address the potential E&S risks and impacts. Social Risk Rating Substantial The social benefits of the project manifest through, creating livelihood opportunities, jobs that are women and youth inclusive and institutional capacity building for environmental and social risk management. The project planning and implementation using a community-based NRM process shall define its approach to address the challenges faced by women and youth. The project will be working in conflict prone states and will adopt a conflict- sensitive approach. The overall fragility in Sudan is largely due to economic shocks which disproportionately affect the poor and vulnerable groups. The conflict situation varies in intensity from Darfur to North Kordofan and Eastern Oct 26, 2021 Page 9 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) States. The project will closely coordinate with the FCV team to ensure the project does not exacerbate conflict and components and activities are tailored to contribute to broader social cohesion. Project preparation and implementation will pay attention to the diverse sources of conflict and fragility and tailor the mitigation measures by adopting a conflict sensitive approach during preparation. The project intends to carry out a conflict analysis to derive tailored conflict resolution mechanisms in the target project areas. The growing civic space and activism signals for an enhanced space for structured stakeholder engagement and feedback mechanism, including for project beneficiary communities. The project has developed a Stakeholder Engagement Plan (SEP) to identify relevant stakeholders including beneficiaries, method of engagement, frequency of engagement with a responsible entity for implementation at different stages of the project preparation and implementation. The SEP will provide an indicative sketch of the project GRM for strengthening/establishment in the project intervention areas. Sudan has a diverse people with varied cultural, linguistic and livelihoods backgrounds. The project shall undertake a focused social assessment for people meeting the requirements of ESS7 to determine the communities including pastoral and agro-pastoral groups. The broader social development challenges—such as vulnerable groups, IDPs, refugees— will be covered in the ESMF. Further, a potential social risk may arise due to the increase in the volume of investment and inadequate institutional capacity on the regulatory side, and lack of counterpart entities for strengthening social risk management at national and state levels. 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 Public Disclosure Overview of the relevance of the Standard for the Project: This standard is relevant to the proposed project and serves as an umbrella to cover potential environmental and social risks and impacts. The project is expected to generate positive environmental and social benefits in the targeted States and beneficiary communities. It will improve sustainable land management and resilience as well as contribute to the livelihood security of vulnerable communities. mainly from project activities under Component 2. Component 2 activities will include, among others, soil and water management, establishment and rehabilitation of water harvesting and storage facilities, biodiversity conservation activities that restore native vegetation by reforestation, enrichment planting, natural regeneration, sand dune stabilization, the effective implementation of sustainable forest and rangeland management plans, and livelihoods support activities. The proposed project also avails of an opportunity to strengthen and support establishment of the environmental and social risk management system (component 1) at the national and state levels. Potential environmental risks and impacts could arise from these activities are expected include: (i) disturbance of environmentally sensitive areas or downstream ecosystems; (ii) salinization, water logging or pollution resulting from small-scale irrigation subprojects, and contamination of soil and water resources due to the use of fertilizers and pesticides in small-scale irrigation an agroforestry activities; and water-borne and water-related diseases, including malaria, related to small dam and water harvesting schemes;; and (iii) disruption of downstream ecosystems or water flows by water subprojects (and to address this issue, a preliminary/rapid cumulative impact assessment (RCIA) with a mitigation and monitoring plan will be prepared as part of the ESMF). For small dams, measures including institutional arrangements required for their construction and management will be reflected in ESMF comprising generic safety guidelines for small dams. Oct 26, 2021 Page 10 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) Component 1 will support the preparation of a comprehensive policy framework that deals with sustainable forest and land use management may have direct and/or indirect environmental risks and impacts which will require SESA to evaluate the E&S aspects of the proposed policy. Thus, the terms of reference (ToR) for the preparation of the proposed policy framework, capacity building program (component 1) and the project coordination and management (component 3) shall require incorporating the objectives and principles of the relevant ESSs in order to ensure that activities and outputs are consistent with the WB. The environmental risk mitigation measures will rely on sequenced short- and long-term measures to address the potential environmental risks and impacts while working on long term institutional capacity. The potential social risks encompass, (i) challenges with robust targeting system for project benefits in the targeted project areas, (ii) insufficient community engagement and inadequate adherence to the community based NRM guideline leading to grievances on project related benefits leading to elite capture, including green jobs, (iii) conflict and fragility from diverse sources could induce risks in targeted States, (iv) increasing demand for participation in project planning and implementation and inclusion to sharing project benefits, (v) gender-based violence, (vi) inducing access and use restrictions for pastoralists during legalization, demarcation of protected areas and livestock routes, (vii) potential effects on refugees and IDPs as the targeted States embrace sustainable natural resources management practices, and (viii) inadequate environmental and social risk management institutional capacity at National and State levels. The project has prepared the ESF instruments (Stakeholder Engagement Plan (SEP) and Environmental and Social Commitment Plan (ESCP) to be disclosed prior to project appraisal) that comprise proportionate mitigation measures Public Disclosure to address the potential environmental and social risks and impacts. Also, the project shall prepare, prior to implementing any activity under component 2 of the project (disbursement condition under Section III.B.1 of Schedule 2 to the Financing Agreement), the following environmental and social risk management instruments proportionate to the identified potential risks and impacts. These include: (i) Environmental and Social Management Framework (ESMF), covering environmental and social baseline of the project; review of relevant national policy, institutional and regulatory frameworks; broader social development issues (conflict, vulnerable groups, IDPs, refugees, SEA/SH risks assessment and action plan); environmental and social risks/impacts and mitigation measures; project coordination and implementation arrangements; capacity building and training; environmental and social screening process; exclusion list of activities/subprojects that have significant risk on biodiversity, cultural heritage and use of funds to purchase pesticides or fertilizers; ToRs for the preparation of site specific ESSs instruments (such as ESIA/ESMP); integrated pest management plan; Rapid Cumulative Impact Assessment ( RCIA) with a monitoring plan; generic safety guidelines for small dam construction and management; chance finds procedures for cultural heritage, and a summary of relevant WBG EHS guidelines. The proposed sub project activities are not anticipated to involve land acquisition. However, sub projects could involve natural resource access and use restriction, that require preparation, and disclosure of a process framework. (ii) a GBV/SEA risk assessment and plan, (iii) Labor Management Procedure, (iv) an essential social assessment for people meeting the requirements of ESS7, and (v) A security management plan, based on specific targeted State information on the security situation. Also, site-specific ESSs instruments (such as ESIAs or ESMPs as required) for SSNRMP2 subprojects will be prepared to inform the selection and design of the subprojects, implemented, and monitored during implementation. The MoAF Oct 26, 2021 Page 11 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) shall establish and maintain a Project Coordination Unit (PCU), at the national level, with qualified staff and resources (through component 3) to support the management of environmental and social risks and impacts of the Project, including (i) one Environmental Specialist, and (ii) one Social Specialist (and they will be responsible for environmental risk management at the national level). Further, the State MoAFs shall deploy project coordinator, M&E specialist, environmental expert, social expert, and community mobilization officer, among others. ESS10 Stakeholder Engagement and Information Disclosure The objective of stakeholder engagement is to incorporate views from all stakeholders through meaningful consultations and feedback to improve the environmental and social sustainability of the project, enhance its acceptance, and make a significant contribution to successful project design and implementation. The project will follow due process in engaging stakeholders at different stages of project preparation and implementation. As the preparation follows a condensed procedure, it will be transferring a broader stakeholders consultation aspect to the implementation phase using the community based NRM procedure. The COVID-19 situation has restricted mobility, set limits on the number of people for face-to-face meetings, along with the precautionary prevention measures. Despite the limitations of COVID-19 indicated above, and following a condensed procedure for preparation, sensitizing the project objectives and activities with stakeholders is being carried out through ongoing consultations and will continue throughout the project cycle from preparation through implementation and monitoring. The project’s success depends on the active participation of various institutional multi-stakeholders. Public Disclosure The main stakeholders of the project will include (a) government institutions involved in environment and natural resources management through technical and logistical support, (b) project beneficiaries, including local communities, women, youth, and vulnerable/marginalized groups, and (c) NGOs and other interested stakeholders. The project will establish effective communication channels among various stakeholders including project beneficiary communities. This will be guided by a comprehensive stakeholder engagement/consultation plan (SEP). The SEP will outline the stakeholder engagement methods, timing/frequency, responsible entity, budget, identify various relevant stakeholders to the proposed project objective. A project specific grievance redress mechanism (GRM), proportionate to the potential environmental and social risks and impacts of the project, will also be developed through inclusive and participatory approach and put in place to respond to concerns and grievances of project-affected parties in a timely manner. Further, the overall GRM principles, structure, and function will be outlined in the ESMF as well. The client is expected to ensure that all activities are aligned with WHO guidance on COVID-19 risk communications (https://www.who.int/emergencies/diseases/novel-coronavirus-2019/technical-guidance) and the GoS, Ministry of Health COVID-19 Infection Prevention and Control as per the guidance notes. 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 The project workers will include (i) project staff at national, state and local levels, (ii) consultants, and (iii) community workers in NRM and soil and water conservation work. The potential risks relevant to this ESS encompass: (i) child and forced labor in NRM and SWC works and green jobs, (ii) safety risks and workplace accidents during NRM and soil Oct 26, 2021 Page 12 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) and water conservation work, (iii) inadequate consultation to defining principles for voluntary community labor (if mobilized). The risks and mitigation measures include: (i) defining minimum working age and adopting no child and forced labor on the project activities, (ii) use of codes of conduct, (iii) measures to ensure that community labor is provided on a voluntary basis, and (iv) ensuring proportionate occupational health and safety trainings and contract provisions, including PPE, first aid, medical emergency management, among others. The project will therefore prepare Labor Management Procedures ( prior to implementing any activity under component 2 of the project (disbursement condition under Section III.B.1 of Schedule 2 to the Financing Agreement) outlining the national provisions, requirements under ESS2 and other ESSs including OHS aspects, clarification of the minimum age and the project’s commitment prohibiting child labor and forced labor, commitment to non-discrimination, and inclusion of a worker’s grievance redress mechanism in the LMP for project staff, and community workers on subprojects, among others. ESS3 Resource Efficiency and Pollution Prevention and Management This standard is relevant as the project will have direct and/or indirect consequences for resource efficiency and pollution management. The livelihoods support activities (including crop processing, establishment of nurseries, poultry production, forage farming and feed processing, sheep and goat fattening, and small-scale irrigation schemes) require efficient use of fodder, water and/or other resources. Further, the livelihoods support activities and the public works related to community-based sustainable management of natural resources and biodiversity conservation will have limited environmental pollution problems (such as noise, dust, and air/greenhouse gas emissions); soil disturbance and degradation related to afforestation/reforestation and other public works, including Public Disclosure soil and water conservation works; and salinization, water logging or pollution resulting from small-scale irrigation/water harvesting activities. Most SSNRMP2 water harvesting schemes will be micro-scale, but some can be expected to incorporate a small dams and will have the potential for the use of agrochemicals, with their associated risks of water and soil pollution, and risks to humans arising from mishandling and the absence of protection. To manage these risks and impacts, the project will use, among others, the GoS laws and guidelines and the WBG EHS Guidelines for Annual Crop Production(https://www.ifc.org/wps/wcm/connect/766c4c6e-e4b1-41ef-a980- 3610bce404e8/Annual+Crop+ Production+EHS+ Guidelines_2016+FINAL.pdf?MOD=AJPERES&CVID=lfe82iC); EHS Guidelines for Poultry Production (https://www.ifc.org/wps/wcm/connect/26828301-873b-4497-99f0- 5b7e9123dcfe/Final%2B-%2BPoultry%2BProduction.pdf?MOD=AJPERES&CVID=jkD2FoC); and IFC Good Practice Note on Improving Animal Welfare in Livestock Operations (https://www.ifc.org/wps/wcm/connect/c39e4771-d5ae- 441a-9942-dfa4add8b679/IFC+Good+Practice+Note+Animal+Welfare+2014.pdf?MOD=AJPERES&CVID=kGxNx5m) and WBG General EHS Guidelines, which are in line with the WB ESF, and will be reflected in the ESMF along with waste management plan for small-scale activities, including small-dam construction, and further detailed in site specific environmental and social risk management instruments (such as ESIAs/ESMPs) for subprojects during implementation. While commercial level production and processing activities are not anticipated, these technical reference documents are relevant to the proposed project components and activities. Further, the project (through component 2) will have a target of at least 179,000 ha for afforestation/reforestation which has a potential to sequestrate 90 million tons of carbon dioxide equivalent. Regarding agrochemicals, the project prohibits the use of project funds to purchase pesticides or fertilizers. Nonetheless, some farmers (through taking advantage of the project support) may choose to purchase and use agrochemicals to boost their agricultural production and productivity. As a result, the agrochemicals residues could Oct 26, 2021 Page 13 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) pollute the local environment, including soil and water resources. Thus, the ESMF includes integrated pest management plan (IPMP), including management of related wastes, and requires SPIU staff to provide information and training on use of IPMP, including acceptable and unacceptable pesticides and will encourage farmers to comply with the WB ESF, GoS laws/regulations and international standards of use and storage. Although the irrigation/water harvesting subprojects are not expected to have significant risk profiles, based on their scale, the ESMF includes procedures for screening small-scale irrigation/water harvesting subprojects to identify those with impacts on surface and ground water, including assessment of current and planned uses of water within the watershed, assessing short- and long-term cumulative impacts on communities, other users, and the ecosystem services. In this regard, a rapid cumulative impact assessment with a mitigation/monitoring plan at a project level will be prepared as part of the ESMF prior to implementing any activity under component 2 of the project (disbursement condition under Section III.B.1 of Schedule 2 to the Financing Agreement). The oversight of mitigating measures will be the responsibility of the community mobilizers, backed up by technical support from the state agriculture office, and coordination of monitoring by the PCU. Also, site-specific ESSs instruments (e.g., ESIAs/ESMPs), incorporating requirements of ESS3 and others, for subprojects will be prepared, implemented and monitored during the project implementation as per the ESMF, RCIA with its mitigation/monitoring plan, and other relevant ESF instruments. ESS4 Community Health and Safety Public Disclosure ESS4 applies to the project principally in respect of health and safety arising from the construction and operation of the subprojects. The risks to community health and safety arise principally from: (i) occupational hazards while working as a community worker on a subproject construction site; (ii) risks to community members inadvertently on, or in the vicinity of, a subproject construction site; and (iii) risks to all and any community members from accidents or failures of a subproject during operations. Security communities and project beneficiaries and project workers particularly in conflict affected areas and active conflict areas present a potential risk, exacerbated due to remoteness. It will be important therefore to conduct awareness activities and ensure contribution of actors engaged to put measures in place, including engagement with communities as well as security personnel, when needed, to minimize security risks that may adversely affect the implementation of the activities and present a risk to project beneficiaries and project workers. The project shall conduct a security assessment to inform preparation of a Security Management Plan (SMP) commensurate to the potential security risks, when the localities in the respective States are identified during project implementation. The risks to community workers and those in the vicinity are covered by the provisions of the LMP under ESS2. Risks to community members from accidents or failures of subprojects during operation could arise from: • Humans and animals falling into a community water-harvesting scheme • Human health being impacted by exposure to polluted water and soil (due to use of agrochemicals) from water, crop production/processing and agroforestry subprojects and other livelihoods support activities Oct 26, 2021 Page 14 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) • Human health and safety being impacted by exposure to introduction/increase in water related diseases (such as malaria); air, soil and water pollution; and potential risk of COVID-19 infection within and around project sites The risks from water storage facilities such as water-harvesting schemes, and subprojects supplying water for human consumption, and livelihoods activities will be included in the ESMF and addressed by: • The incorporation of good safety practice features in the subproject design • Supervision of water subproject and livelihood support activities implementation by technical staff • Awareness-creation and training by the community mobilizer of the community in the management and use of the subprojects • For small dams, measures including institutional arrangements required for their construction and management will be reflected in the generic safety guidelines for small dams (as part of ESMF). The project work involves NRM and soil and water conservation work in the targeted five states using community and contracted labor. Also, due to the nature of public works, engagement of project workers and consultants, the potential risks and impacts of sexual exploitation and abuse cannot be ruled out. Hence, the project will prepare a proportional SEA/SH action plan informed by an assessment as part of the ESMF. Overall, the risks to the community in the proposed project activities will be outlined in the ESMF along with proposed mitigation measures. Also, site- specific ESSs instruments (e.g. ESIAs/ESMPs), incorporating requirements of ESS4, for subprojects will be prepared, implemented and monitored during the project implementation as per the ESMF, including the rapid cumulative impact assessment (RCIA), and other relevant ESF instruments. Public Disclosure ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement The proposed project does not anticipate acquiring any land. However, the proposed activities, under component two, involve restrictions on land use and access to natural resources that cause a community or groups within a community to lose access to resource usage where they have traditional or customary tenure, or recognizable usage rights people used to depend on for their livestock and livelihoods. The activities include, (i) collaborative forestry management, (ii) community soil and water conservation practices, (iii) participatory rangeland management (iv) participatory development and implementation of integrated land management plans, (v) community-based fishery and mangrove forest management, (vi) demonstration agro-forest practices through farmer field schools. The project will follow a community based natural resources management planning and implementation procedure. The potential risks to the proposed activities shall be managed through a defined process framework outlining for key steps to follow during implementation of activities that involve access and use restriction to natural resources and protected areas. The process framework key principles will not apply to restrictions of access to natural resources under community-based natural resource management projects is assessed and determined to the satisfaction of the Bank to establish that the community decision-making process is adequate and reflects voluntary, informed consensus, and that appropriate measures have been agreed and put in place to mitigate adverse impacts, if any, on the vulnerable members of the community. The project will prepare a process framework prior to implementing any activity under Component 2 of the Project, prepare, approve, and disclose PF (disbursement condition under Section III.B.1 of Schedule 2 to the Financing Agreement). ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources Oct 26, 2021 Page 15 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) The SSNRMP2, which is limited to community subprojects implemented in inhabited areas, together with the ESMF screening procedure for subprojects, is designed to eliminate any subproject or identify project design solutions that would have negative impacts on forests, natural or critical habitats, or protected areas of high biodiversity value. For those subprojects, where such impacts are unavoidable, subproject specific ESIA will identify potential impacts and propose relevant mitigation measures to minimize such impacts, which will be included in the ESMPs for subprojects. The PCU environmental specialist and social specialist at the national level, and SPIU environmental expert and social expert along with a community mobilization officer for each state, in collaboration with the state agriculture relevant staff, will monitor impacts of such subprojects, utilizing the project ESMF, to ensure that the standards of ESS6 are maintained, including the sustainable management of living resources and prohibition on the introduction of alien species. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities Sudan is a diverse country and home for people with varied cultural, linguistic and livelihoods background. The project shall undertake a focused social assessment based on the requirements of ESS7 to determine the presence of communities including pastoral and agro-pastoral groups. A social assessment will be prepared, consulted up on and disclosed prior to implementing any activity under component 2 of the project (disbursement condition under Section III.B.1 of Schedule 2 to the Financing Agreement). If IP/SSAHTLCs are identified and the relevance of ESS7 is determined, an IPP will be prepared prior to implementing any activity under component 2 of the project (disbursement condition under Section III.B.1 of Schedule 2 to the Financing Agreement). Public Disclosure ESS8 Cultural Heritage Since some of the subprojects (e.g., small-scale irrigation/water harvesting) can involve excavation, movement of earth, or other changes in the physical environment, ESS8 applies to the Project. Sudan is rich in tangible cultural heritage, particularly in the form of both natural and human-made religious sites, and undocumented as well as documented archeological sites. There is thus a risk of subprojects involving earth-moving (such as small-scale irrigation subprojects) encountering, disturbing and possibly destroying, cultural heritage. These risks to cultural heritage will be addressed by the Project as follows: (i) subprojects likely to be implemented within, or in the vicinity of, a known cultural heritage site will be eliminated in the ESMF Screening process, (ii) unexpected encounters with cultural heritage artefacts during subproject implementation will be addressed by a Cultural Heritage Chance-Finds Procedure that requires the community mobilizer to take up the matter with the relevant local government office. Further, based on the result of screening, site-specific ESSs instruments (ESIAs/ESMPs), including chance finds procedure/ESS8 requirements, for subprojects will be prepared, implemented and monitored during the project implementation. ESS9 Financial Intermediaries Not relevant at this stage. B.3 Other Relevant Project Risks Oct 26, 2021 Page 16 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) Given the political tensions and security risks, monitoring of the project may require close attention to issues on communal conflicts. Equally, remote monitoring and supervision mechanisms will need to be put in place, as likely access issues will arise in some areas. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways Yes Exemption memo in accordance with Paragraph 7a being processed. 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: Not Applicable. IV. CONTACT POINTS Public Disclosure World Bank Contact: Dora Nsuwa Cudjoe Title: Senior Operations Officer Telephone No: +1-202-458-5887 Email: dcudjoe@worldbank.org Contact: Nigel Ross Hughes Title: Senior Natural Resources Management Specialist Telephone No: 5358+6153 / 1-202-53586153 Email: rhughes@worldbank.org Borrower/Client/Recipient Borrower: H.E Jibril Ibrahim Mohamed Implementing Agency(ies) Implementing Agency: Ministry of Agriculture and Forestry V. FOR MORE INFORMATION CONTACT Oct 26, 2021 Page 17 of 18 The World Bank SECOND Sudan Sustainable Natural Resources Management Project (P176870) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Nigel Ross Hughes, Dora Nsuwa Cudjoe Practice Manager (ENR/Social) John Muratha Kinuthia Cleared on 21-Oct-2021 at 09:24:56 GMT-04:00 Public Disclosure Oct 26, 2021 Page 18 of 18