INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA2581 Public Disclosure Copy Date ISDS Prepared/Updated: 02-Apr-2013 Date ISDS Approved/Disclosed: 19-Jan-2013, 04-Apr-2013 I. BASIC INFORMATION 1. Basic Project Data Country: Vietnam Project ID: P117394 Project Name: Fostering Innovation through Research, Science and Technology (FIRST) (P117394) Task Team Suhas D. Parandekar Leader: Estimated 10-Jan-2013 Estimated 29-May-2013 Appraisal Date: Board Date: Managing Unit: EASHE Lending Specific Investment Loan Instrument: Sector: Tertiary education (100%) Theme: Education for the knowledge economy (100%) Financing (In USD Million) Total Project Cost: 110.00 Total Bank Financing: 100.00 Total Cofinancing: Financing Gap: 0.00 Public Disclosure Copy Financing Source Amount BORROWER/RECIPIENT 10.00 International Development Association (IDA) 100.00 Total 110.00 Environmental B - Partial Assessment Category: Is this a No Repeater project? 2. Project Objectives The project development objective is to support science, technology and innovation in Vietnam by improving the utilization of global scientific and research networks, enhancing the effectiveness of project-aided Research and Development (R&D) institutions, and encouraging the development of innovative technology enterprises. 3. Project Description The proposed Project consists of the following three components: (i) Knowledge Policy Page 1 of 7 Development, (ii) Supporting Government Research Institute (GRI) Reform and Enterprise Innovation, and (iii) Project Management and Policy Research Program on Project Activities. Public Disclosure Copy Component 1: Knowledge and Policy Development Subcomponent 1 (a): Research on and Pilot Implementation of Policies to Attract Overseas Talented Experts – This subcomponent includes carrying out research on, and developing and piloting the implementation of policies intended to attract talented experts residing abroad, in order to conduct scientific research and foster innovation in Vietnam, through: (i) reducing the information barriers and connecting scientific and innovation networks abroad with GRIs and innovation driven enterprise in Vietnam networks; and (ii) provision of Foreign Talents Science, Technology and Innovation (STI) Grants to selected scientific researchers and/or public or private research institutions interested in liaising/interacting with scientific and entrepreneurial talents overseas. Subcomponent 1 (b): Strengthening Results Measurement in Science, Technology and Innovation – This subcomponent comprises upgrading and modernizing the collection, dissemination, and use of science and technology and innovation statistics from enterprises and research institutions, including: (i) carrying out of research and development, and innovation surveys based on international standards; (ii) publishing yearbooks on science, technology and innovation statistics; (iii) develop a monitoring and evaluation framework to measure the effectiveness and efficiency of research and development institutions in both public and private sectors; (iv) strengthening the National Agency for Scientific and Technological Information's (NASATI’s) institutional capacity to conduct technology mapping exercises and technology innovation gap analyses for selected productive sectors; and (v) setting up a national science, technology and innovation database. Component 2: Supporting Government Research Institutes Reform and Enterprises Innovation Subcomponent 2 (a): Supporting Government Research Institutes Reform – This subcomponent will provide approximately fifteen (15) GRI STI Grants to selected GRIs in selected Priority Sectors, in Public Disclosure Copy order for them to implement their GRI Conversion Plans to evolve from traditionally managed organizations towards autonomous market-driven institutions. The GRIs will be selected from four priority sectors identified in Law 21/2008/QH12 on High Technology: (i) information and communications technology (ICT); (ii) bio-technology and agriculture; (iii) advanced materials; and (iv) mechanical manufacturing and automation. Subcomponent 2 (b): Enterprises Innovation – This subcomponent will provide: (i) New Enterprises STI Grants to competitively selected, recently established technology enterprises for the implementation of New Enterprises Proposals; (ii) Research and Innovation Consortium STI Grants to selected enterprises, research institutes and universities (“Phase I – Research and Innovation Consortium STI Grant�), or consortia thereof (“Phase II - Research and Innovation Consortium STI Grant�), for the development and implementation of Consortia Project Proposals. Subcomponent 2 (c): Establishment of the National Core Technology Laboratory for Mechanical Manufacturing Automation and Embedded Technology – This subcomponent will develop the architectural designs, and carrying out the civil works for the construction and habilitation of national laboratory for mechanical manufacturing automation and embedded technology in Hoa Lac High- Tech Park (HHTP) in order to pioneer a government-owned-privately-operated public-private partnership arrangement. Page 2 of 7 Component 3: Project Management and Policy Research Program on Project Activities Subcomponent 3 (a): Project Management – This subcomponent will strengthen the institutional Public Disclosure Copy capacity of the Ministry of Science and Technology (MOST) in order to implement the Project and comply with the fiduciary, monitoring and evaluation, and reporting requirements thereunder. Subcomponent 3 (b): Policy Research Program on Project Activities – This sub-component will carry out policy research programs on Project activities. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project location is nationwide since proposed activities can take place anywhere in Vietnam. 5. Environmental and Social Safeguards Specialists Nghi Quy Nguyen (EASVS) Thuy Cam Duong (EASVS) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes BP 4.01 Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 No Physical Cultural Resources OP/ No BP 4.11 Public Disclosure Copy Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP No 4.12 Safety of Dams OP/BP 4.37 No Projects on International No Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No 7.60 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: Environment: OP/BP 4.01. Environmental Assessment. OP/BP 4.01 is triggered by the proposed project. The Page 3 of 7 following two project activities under Component 2 have the potential for adverse environmental impact: (i) the construction of the building that will house the National Core Technology Laboratory for Mechanical Manufacturing Automation and Embedded Technology (VINALAB- Public Disclosure Copy MAMET) at Hoa Lac High Tech Park (HHTP); and (ii) subproject activities to be undertaken by project-supported Government Research Institutes (GRIs) and enterprises. The project may cause potential adverse environmental impacts including the generation of dust, noise, solid waste and wastewater as well as issues relating to traffic and labor safety management. However, these impacts are expected to be localized, varying from moderate to low levels and manageable through good design, appropriate mitigation measures and close monitoring during implementation and operation. In addition, the operation of the laboratory may create some long-term impacts such as the generation of domestic/industrial wastewater and solid waste. These, again, can be mitigated by waste disposal management. Subprojects to be implemented by grant recipient GRIs and private enterprises also have the potential for minor environmental impacts. These subprojects will support Research and Development (R&D) activities at each of the grant receiving organizations and can include equipment purchase and rehabilitation/upgrading of facilities. In the case of rehabilitation and equipment purchase, potential small-scale impacts include the generation of dust, noise, solid waste, and wastewater. The potential adverse environmental impacts are not significant or of large scale, consequently the project is classified for environmental impact as a category ‘B’ project. OP 4.09 Pest Management. OP 4.09 is not triggered by the proposed project as it was determined during appraisal that the project will not finance the procurement of harmful chemical pesticides nor will the project encourage the use of such pesticides. However, it is noted that the project will provide grants for as yet unidentified GRIs, university research departments and enterprises. It is also noted that agriculture and bio-technology sectors are identified as one of the five identified priority sectors for the project, therefore grant receiving institutes or enterprises may be involved Public Disclosure Copy in agricultural research. Said agricultural research may involve experimentation in a laboratory setting that could involve the use of pesticides by technical staff for research purposes. The project implementing agency will ensure that any such limited use of pesticides will be in accordance with an integrated pest management (IPM) approach and national regulations and will not pose any significant health or environmental risk. Social: OP 4.10 Indigenous People. OP 4.10 is not triggered by the proposed project. An early screening was conducted by the Bank’s social specialist and the MOST team. The screening included a meeting with the HHTP Management Board, a series of site visits and review of relevant documents. The screening concluded that there are no ethnic minority communities present in the project area. OP 4.12 Involuntary Resettlement. OP 4.12 is not triggered by the proposed project. Since one of the project activities includes the construction of a building to house VINALAB-MAMET, the Bank’s social specialist reviewed the social assessment regarding the acquisition and clearance of the land for the laboratory. The social assessment, conducted by a qualified specialist, found that VINALAB-MAMET is planned to be established on a small parcel of land, approximately 2 ha, which will be within the R&D Section (229ha) of HHTP. The assessment concluded that the land Page 4 of 7 planned to be used for the VINALAB-MATMET was cleared in the period 2008-2010 and there are no legacy issues regarding resettlement or compensation left over from that period. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities Public Disclosure Copy in the project area: Environment: The potential minor long-term environmental impacts include the generation of waste water and solid waste from the VINALAB-MAMET during its operation, and from beneficiary GRIs and enterprises’ subprojects, which involve research activities. Beneficiary organizations will be required to comply with relevant national requirements on waste management and good management practices as described in the Word Bank Group’s Environmental, Health & Safety (EHS) General Guidelines. Social: The project has no direct, indirect and long-term social impacts in the project area. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse 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. Environment: As part of the project preparation, the Project Preparation Unit (PPU) under MOST has developed an Environmental and Social Management Framework (ESMF) to ensure that activities during implementation and operation shall be in compliance with the World Bank safeguard policies and national environmental management regulations. The ESMF is in accordance with the Bank Public Disclosure Copy safeguard policies and requirements, as well as with the national regulations on environmental assessment and management. The ESMF has been approved by MOST and included in the Project Implementation Manual to ensure that the environmental issue will be considered together with other requirement during project implementation. The ESMF covers: (i) a screening process to exclude ineligible activities/subprojects; (ii) impact assessment and development of mitigation measures, including the Environmental Codes of Practice (ECOPs) for construction/minor construction activities; (iii) safeguards documentation preparation and clearance; (iv) safeguard implementation, supervision, monitoring, and reporting; (v) institutional arrangement and budget for safeguard implementation; and (vi) institutional strengthening and capacity building programs for the safeguards implementing entities. The ESMF also includes an Environmental Management Plan (EMP) with generic guidelines and requirements to manage potential impacts associated with the establishment of VINALAB-MAMET during design, construction and operation. It also includes standardized ECOPs which describe measures for impacts associated with construction/ minor construction activities. The ECOPs and other subproject site specific mitigation measures will be included in the bidding documents and contracts and closely monitored by subproject owners and supervision engineers. The Central Project Management Unit (CPMU) will have the overall responsibility for safeguard implementation including providing guidance regarding safeguards requirements and carry out environmental monitoring to ensure that GRIs and enterprises adequately meet safeguards Page 5 of 7 compliance. In addition, the CPMU and HHTP will be responsible for implementing safeguards requirements related to the establishment of the VINALAB-MAMET. GRIs and enterprises will be responsible for implementation of safeguards requirements of subprojects and activities under Public Disclosure Copy Component 2. As FIRST is the first World Bank financed project to be carried out by MOST, the capacity of the CPMU and GRIs and enterprises regarding compliance with Bank safeguards policies therefore is considered limited. The Project will require the allocation of qualified staff under the CPMU to oversee environment and social safeguard issues, and training will be provided as necessary to strengthen the capacity of the CPMU and grant recipients regarding the implementation of safeguard requirements. Social: A qualified consultant with experience and knowledge on the Bank’s requirements was selected by MOST to conduct the social assessment to inform the project design. The social assessment concluded that there are no legacy resettlement issues in the construction of VINALAB-MAMET, which is the only project activity involving civil works. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders for safeguard implementation include CPMU under MOST, beneficiary GRIs and enterprises. Other stakeholders include local authorities, the management body of HHTP and contractors for construction and equipment supply. During the social assessment, consultation with relevant stakeholders, including government officials, researchers, and potentially affected households were conducted in the form of focus group discussions or in-depth interviews where participants could express their views on the project’s impacts as well as design. During the preparation of the ESMF, meaningful consultations with related stakeholders were Public Disclosure Copy conducted twice: (i) once before the term of reference (TOR) for the ESMF was prepared; and (ii) once when the draft ESMF was finalized. Consultation with beneficiary GRIs and enterprises could not be conducted as grant recipients have not yet been identified. In addition, the VINALAB-MAMET is located on the vacant land in HHTP and there are no identified potential affected people. Therefore, at project level, the public consultations of the ESMF were conducted with MOST, the management body of HHTP and local consultants. The concerns and feedback during the consultations were taken into account and reflected in the final ESMF. Prior to appraisal, the ESMF has been disclosed locally in Vietnamese at the PMU office and at the Department of International Relations in MOST and at the Vietnam Information Development Center (VIDC) in Hanoi. In addition, the ESMF has been disclosed in English in the InfoShop in Washington, D.C. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 16-Jan-2013 Date of submission to InfoShop 17-Jan-2013 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Page 6 of 7 "In country" Disclosure Vietnam 16-Jan-2013 Comments: Public Disclosure Copy If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] Public Disclosure Copy include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader: Suhas D. Parandekar Approved By Sector Manager: Name: Luis Benveniste (SM) Date: 04-Apr-2013 Page 7 of 7