ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) Deposit Protection Office Lao Democratic People’s Republic/ Deposit Protection Office Financial Safety Net Strengthening Project (P169194) ENVIRONMENTAL and SOCIAL COMMITMENT PLAN (ESCP) January 15, 2020 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) Deposit Protection Office ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Lao People’s Democratic Republic Deposit Protection Office will implement the Financial Safety Net Project (the Project), with the involvement of The Bank of Lao PDR. The International Development Association (hereinafter the Association) has agreed to provide financing for the Project. 2. The Deposit Protection Office will implement material measures and actions so that the Project is implemented in accordance with the Environmental and Social Standards (ESSs). This Environmental and Social Commitment Plan (ESCP) sets out material measures and actions, any specific documents or plans, as well as the timing for each of these. 3. The Deposit Protection Office will also comply with the provisions of any other E&S documents required under the ESF and referred to in this ESCP and the timelines specified in those E&S documents. 4. The Deposit Protection Office is responsible for compliance with all requirements of this ESCP even when implementation of specific measures and actions is conducted by the Bank Of Lao PDR. 5. Implementation of the material measures and actions set out in this ESCP will be monitored and reported to the Association by the Deposit Protection Office as required by the ESCP and the conditions of the legal agreement, and the Association will monitor and assess progress and completion of the material measures and actions throughout implementation of the Project. 6. As agreed by the Association and the Deposit Protection Office, this ESCP may be revised from time to time during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to assessment of Project performance conducted under the ESCP itself. In such circumstances, the Deposit Protection Office will agree to the changes with the Association and will update the ESCP to reflect such changes. Agreement on changes to the ESCP will be documented through the exchange of letters signed between the Association and the Deposit Protection Office. The Deposit Protection Office will promptly disclose the updated ESCP. 7. Where Project changes, unforeseen circumstances, or Project performance result in changes to the risks and impacts during Project implementation which were occurred by the Deposit Protection Office, the Deposit Protection Office shall use its own budget or contingency fund of the project to implement actions and measures to address such risks and impacts. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) Deposit Protection Office MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY MONITORING AND REPORTING A REGULAR REPORTING Six monthly throughout Project DPO, DPO focal points for Environmental implementation. and Social Safeguards/Public Awareness The Deposit Protection Office (DPO) will prepare and submit to the Association regular monitoring reports on the environmental, social, health and safety (ESHS) performance of the Project, including the implementation of the ESCP, status of preparation and implementation of E&S documents required under the ESCP, stakeholder engagement activities, functioning of the grievance mechanism(s). B INCIDENTS AND ACCIDENTS Notify WB (the Association) within 48 hours DPO/DPO focal point after learning of the incident or accident. The DPO will promptly notify the Association through WB of any Submit to WB (the Association) within 10 incident or accident related to the Project which has, or is likely to have, days incident report a significant adverse effect on the environment, the public or workers. Provide sufficient detail regarding the incident or accident, indicating immediate measures taken or that are planned to be taken to address it. Subsequently, as per the Association’s request, prepare a report on the incident or accident and propose any measures to prevent its recurrence. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE An organizational structure including the DPO focal point for Environmental and one specialist will be established within 30 Social Safeguards The DPO will establish and maintain an organizational structure with days after Project effectiveness. The qualified staff and resources to support management of E&S risks. organizational structure, including the specialists, should be maintained throughout Project implementation 1.2 MANAGEMENT TOOLS AND INSTRUMENTS Establish within 30 days after Project DPO HR Officer and Consultant effectiveness and before contracting or The DPO will establish the Regulation on Project Workers Management employment of Project workers. related to labour and working standards in relation for contracted and volunteer workers to ensure alignment with the standards of the ESCP. The relevant policies and instruments will be implemented throughout the duration of the Project. 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) Deposit Protection Office ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT Establish within 30 days after Project DPO HR Officer and Consultant effectiveness and before contracting or The DPO will establish the policies related to the labor and working employment of Project workers. conditions for project workers, subcontractors and volunteers to ensure alignment with the ESF and implement these policies. The relevant policies and instruments will be implemented throughout the duration of the Project. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Grievance mechanism developed prior to DPO HR Officer and Consultant engaging Project workers and operational The DPO establish, communicate, maintain, and operate a grievance throughout Project implementation. mechanism for all Project workers consistent with ESS2. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 OFFICE MANAGEMENT RULE Base on the BOL notice periodically A focal person within DPO and Consultant throughout Project implementation. There will be no materials to be sourced, neither waste generated directly from project’s proposed activities. However, sustainable use of resources including energy and water will be promoted in the operation of the DPO. The management reflects resource efficiency and pollution prevention in the office’s area such as energy saving, plastic and solid waste management (reuse, recycle and recover) will be based on current BOL notice on energy efficiency. 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) Deposit Protection Office ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 7.1 ENGAGEMENT WITH INDIGENOUS PEOPLES 3 months after effectiveness DPO/DPO focal point The DPO will include provisions for addressing issues of language, physical distance, and other possible barriers towards inclusion of ethnic groups into the Public Awareness Strategy and Feedback and Grievance Mechanism for the Project and implemented in a manner acceptable to the Bank. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT By effectiveness DPO Focal Point The DPO has prepared a draft public awareness strategy, which will be presented for Board approval. The strategy will be updated throughout project implementation. Beneficiary surveys will be undertaken during project implementation and will inform updates of public awareness strategy. 10.2 PROJECT GRIEVANCE MECHANISM By effectiveness DPO Focal Point The DPO will prepare, adopt, communicate, and maintain and operate a grievance mechanism, as described in the public awareness strategy. CAPACITY SUPPORT (TRAINING) CS1  Training to commercial banks and Deposit-taking Microfinance Six months after effectiveness; at least DPO Public Awareness Focal Point in Institutions on public awareness and handling customer annually after cooperation with Lao Banker’s inquiries/feedback Association, Microfinance Association and Consultant 5|Page