The World Bank Djibouti Digital Foundations Project (P174461) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 11/16/2020 | Report No: ESRSC01709 Nov 16, 2020 Page 1 of 9 The World Bank Djibouti Digital Foundations Project (P174461) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Djibouti MIDDLE EAST AND NORTH P174461 AFRICA Project Name Djibouti Digital Foundations Project Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Digital Development Investment Project 2/7/2021 5/27/2021 Financing Borrower(s) Implementing Agency(ies) MEFIP -- Ministère de ANSIE -- Angence Nationale l’Economie et des des Systemes de Finances, Chargé de d'Information de l'Etat Industrie et de la Planfication Public Disclosure Proposed Development Objective The project development objective is to assist the Government in creating a favorable environment for the introduction of competition and private sector investment, and to promote the adoption of digital skills and services. Financing (in USD Million) Amount Total Project Cost 10.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] Djibouti has a lot to gain by building a strong and inclusive digital economy and harnessing the power of technological innovation. Djibouti Vision 2035 acknowledges the role of ICTs as a “powerful tool for increasing production, competitiveness and improving well-being”. In fact, the development of the ICT sector and the digital economy can contribute to economic growth through its respective added value, while in parallel stimulating the growth of other Nov 16, 2020 Page 2 of 9 The World Bank Djibouti Digital Foundations Project (P174461) sectors, by fostering productivity, innovation and entrepreneurship, and in turn driving job creation and economic diversification. By accelerating digital transformation and leapfrogging, Djibouti’s position as an essential trade hub could be strengthened. For instance, the digital economy could catalyse an ecosystem of platforms for transport, logistics and distribution. Similarly, Djibouti could take advantage of its ICT infrastructure to promote outsourceable activities such as call centers and business process outsourcing. The proposed operation Djibouti Digital Foundations Project (“Digital Djibouti”) seeks to be transformational in that it would support deep and systemic change in the telecommunications/ICT sector with the potential for large-scale impact on the growth of the digital economy in Djibouti. It aims to help Djibouti harness its digital potential by mobilizing the public and private sectors, ensuring that more citizens and businesses have access to quality and affordable internet connectivity, that local digital services are easily accessible online to stimulate demand, and that the digital economy becomes an engine for growth, innovation and job creation. This vision will require a long-term commitment to enable the necessary sectoral policy reforms to be carried out in order to stimulate competition and private sector investment in ICTs, foster innovation, and train a new generation of citizens and digital champions capable of using the technology. The project would be organized around the following components: 1. Digital ecosystem and connectivity -- This component is designed to help Djibouti further lay the groundwork for accelerating the emergence of a vibrant, inclusive and safe digital economy, by creating a favorable legal and regulatory environment and by improving the delivery of broadband connectivity to key institutions, especially for education, 2. Digital transformation and skills -- This component aims to build on on the evolving ICT market structure and the Public Disclosure additional digital connectivity provided under Component 1 to promote digital transformation and skills development. It will seek to promote digital literacy capabilities, in order to increase digital inclusion and literacy, and to stimulate demand for digital solutions through support to the creation of a vibrant digital ecosystem. 3. Project management -- Overall coordination of the project, including procurement, financial management, communications, safeguards, monitoring and evaluation. 4. Contingent Emergency Response Component (CERC). D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] Although Djibouti is the landing site of eight major undersea fiber optic cables and has become an ICT gateway for its neighbors in East Africa, most Djiboutians do not benefit from the country’s powerful infrastructure of submarine cables. The ICT sector is marked by incomplete coverage of the territory, high prices and poor quality of service, which is limited to the state-owned monopoly provider, Djibouti Telecom. Broadband services in Djibouti remains inaccessible for the majority of the population. Overall, Djibouti’s mobile broadband coverage remains below the regional average, with around 30 percent of the population still not covered by mobile broadband in 2017, according to the Global System for Mobile Communications Association (GSMA). Rural connectivity significantly lags behind, as Djibouti Telecom does not cover most localities in the interior of the territory, which implies that the vast majority of the rural population has no mobile broadband coverage. A 2014 study (Gelvanovska et al.) estimated that the price of fixed broadband in Djibouti in 2014 would absorb roughly the whole income of the poorest 60 percent of the population. Limitations of high prices and poor services are further Nov 16, 2020 Page 3 of 9 The World Bank Djibouti Digital Foundations Project (P174461) exacerbated by the lack of access to electricity, with only 60% of households in the country connected and a much lower rate in the interior regions of the country. In sum, high-speed internet access remains unaffordable and inaccessible but for the wealthiest inhabitants or firms. Project activities will mainly take place in Djibouti-ville for the implementation of Component 1 (support to institutional reforms and technical assistance to key agencies) and Component 3 (capacity-building in digital entrepreneurship). Although the list of beneficiary establishments under Component 2 has not yet been defined, project activities under this component are expected to take place across the country and especially in rural areas with poor connectivity. Access to internet and ICT has become increasingly urgent in light of the COVID-19 pandemic and the need to speedy communication and access to virtual services. D. 2. Borrower’s Institutional Capacity The implementing agency will be the Ministry of Communications, Posts and ICT (MCPT). The MCPT has little experience in managing donor-funded projects, and none in managing WB-funded operation. To build the capacity of MCPT and build on its previous experience, the National Agency of Government Information Systems (Agence Nationale des Systemes de d'Information de l'Etat – and the acronym ANSIE in French), which have extensive experience in WB-funded operations, will implement the project up to project effectiveness. That said, none of the agencies have experience in implementing projects that apply the Environmental and Social Framework (ESF). Therefore, the implementing agencies will be subject to an in-depth Environmental and Social institutional capacity assessment. Relevant gaps mitigation measures will be proposed to ensure ESF requirements compliance. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS Public Disclosure A. Environmental and Social Risk Classification (ESRC) Moderate Environmental Risk Rating Moderate Although the project activities will not involve civil works/rehabilitation, the project component 1, will allow the acquisition of equipment (laptops, printers etc) to facilitate the work of the authority leading to an increase of electronic wastes, increase of energy consumption and potentially occupational health and safety concerns for project workers in the COVID-19 context. The project is therefore classified as moderate risk, given the weak capacity of the implementing agencies to manage environmental and social risks. Moreover, the potential adverse risks and impacts on human populations and/or the environment are not likely to be significant, temporary and/or reversible, low magnitude, site specific and can be easily mitigated in a predictable manner. Social Risk Rating Moderate Key social potential risks and impacts of the project include (i) the risk of elite capture and exclusion of vulnerable and disadvantaged groups and individuals from accessing project benefits; (ii) the risk of exposure or propagation of SARS-Cov-2 during the implementation of activities, both in terms of community exposure and exposure of project workers; (iii) risks associated with labor conditions and the protection of the labor force. The sexual exploitation and abuse screening tool has been applied and the risks have been rated to be low. Given that these risks are low in magnitude and that they can be easily mitigated in a predictable manner, the social risks of the project are rated as moderate. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered Nov 16, 2020 Page 4 of 9 The World Bank Djibouti Digital Foundations Project (P174461) B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: This standard is relevant. The project will generate electronic wastes, increase of energy consumption and potentially for occupational health and safety concerns. Other risks include potential for elite capture and the exclusion of vulnerable groups and individuals from accessing project benefits, such as households below poverty levels, students and entrepreneurs living in areas with poor connectivity, may be excluded from project benefits due to poor targeting or insufficient funds. With regards to sexual exploitation and abuse and sexual harassment, the risks are considered to be low. The risk of exposure or propagation of SARS-Cov-2 as a result of project activities implementation has been identified as a transversal risk. Given that the project’s potential adverse risks and impacts on human populations and/or the environment are not likely to be significant and can be easily mitigated in a predictable manner, the environmental and social risks are deemed as moderate. The Borrower will prepare, adopt and implement an Environmental and Social Management Framework (ESMF). The ESMF will set out the principles, rules, guidelines and procedures to assess the environmental and social risks and impacts. The ESMF will consider the CERC component and will develop an e-waste management plan in accordance with good international industrial practices (GIIP). The ESMF will assess social impacts and describe the ways in which the project will benefit previously excluded groups and individuals in accessing internet and digital services. The document will detail the criteria and rationale for selecting beneficiary educational establishments, health centers and community centers. Moreover, the ESMF will include sanitary measures to minimize the risks of propagating or being exposed to SAR-cov-2 through the implementation of project activities. The borrower will also prepare, adopt Public Disclosure and implement Labor Management Procedures (LMP) and a Stakeholder Engagement Plan (SEP), which are described below. The ESMF, LMP and SEP will be prepared and disclosed prior to appraisal. Areas where “Use of Borrower Framework” is being considered: The use of the Borrower Framework is not being considered for this project. ESS10 Stakeholder Engagement and Information Disclosure This standard is relevant. The project will involve various stakeholders. Primary stakeholders include beneficiary students and their parents, patients and health center personnel, entrepreneurs and other individuals who may benefit from greater access to internet. MTCP, the Ministry of Education and Professional Education, and the Ministry of Health are also primary stakeholders. Secondary stakeholders include civil society organizations, business associations and women’s groups. Other interested stakeholders include the public at large and other associated government agencies and ministries which have not been identified at this stage. Vulnerable stakeholders include households below poverty levels as well as those living in areas without access to a cell phone network, internet and electricity. The implementing agency will prepare a Stakeholder Engagement Plan (SEP) that will inform stakeholders about the nature of the Project, its environmental and social risks, ways to access the grievance mechanism, as well as provide more details on the methods of engagement. Given the context of the COVID-19 pandemic, virtual means of communication or any means minimizing face-to-face interactions, such as the use of trucks with loud speakers, will Nov 16, 2020 Page 5 of 9 The World Bank Djibouti Digital Foundations Project (P174461) be favored whenever possible. Face-to-face meetings will be limited to 10 individuals or less with appropriate physical distancing and mask wearing. The SEP will follow national laws and guidelines as well as guidance and technical notes from the World Health Organization (WHO) and the World Bank on consultation and stakeholder engagement in the context of COVID-19. 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 This standard is relevant. Key workers under the project include direct workers such as civil servants working for the Ministry of MCPT and ANSIE. The project will require contracted workers such as experts providing the technical assistance to the ministries, consultants supporting the digital awareness campaigns. Primary suppliers include Djibouti telecom and other international cable suppliers (e.g. EC Cable, SEACOM as well as international IT suppliers The project is not expected to generate labor influx. Key risks associated with this standard include health and safety (OHS) risks, primary among which is exposure to SARS-Cov-2. Other risks relate to compliance with generic labor and working conditions. Finally, although the risk of sexual exploitation and abuse is deemed to be low, the risk of sexual harassment in the workplace cannot be entirely eliminated. The Borrower will prepare Labor Management Procedures (LMP) that includes requirements for: working conditions Public Disclosure and terms of employment; nondiscrimination and equal opportunity; worker’s organizations; child labor and minimum age; forced labor; grievance mechanisms; maintenance of training records and documentation and reporting of occupational accidents, diseases and incidents, emergency prevention and remedies for injuries, disability and disease – including a protocol to mitigate the spread of the COVID-19 and manage cases associated with the workforce. All these requirements will also be included into contractual agreements with suppliers together with appropriate noncompliance remedies. ESS3 Resource Efficiency and Pollution Prevention and Management This standard is relevant. The project activities will generate an increase of energy consumption and consequently increase of GHG emissions due to the expansion use of ICT equipment and increase use of internet. The project present Risks/Impacts linked to generation of electronic wastes. The ESMF will assess all these risks/impacts and mitigate them through the e waste management plan. ESS4 Community Health and Safety This standard is relevant. The main risk to community health is the potential of exposure and spreading of SARS-Cov-2 as a result of implementing project activities. There is also a potential of hazardous materials (ex. Batteries) due to an increased e-waste to seep in resources used by the communities. Nov 16, 2020 Page 6 of 9 The World Bank Djibouti Digital Foundations Project (P174461) The screening tool was applied and the risks of sexual exploitation and abuse are rated low. While some of the activities under Component 2 will take place in the poorest areas of the country (Tadjourah and Obock), most are limited to Djibouti-ville. The project is not expected to generate labor influx. It is unlikely that the project will require the involvement of security forces, although this will be confirmed during the preparation of the ESF instruments. The ESMF will assess all these risks/impacts and propose the relevant mitigation measures. OHS measures to prevent the exposure of the communities to COVID-19 and other communicable diseases will be integrated in the ESMF in line with the WHO guidelines and the Presidential decree N° 2020-080/PR/PM, such as making handwashing stations available, implementing social distancing measures and mask wearing. Additional measures to the e-waste management plan will be integrated to the ESMF (community outreach, school collection systems, etc.). Measures to prevent and sanction incidents of sexual harassment and sexual exploitation and abuse will also be integrated into the ESMF. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement This standard is not relevant. The project does not involve land acquisition. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources This standard is not relevant at this stage. There is no constructions/civil works under this project. Public Disclosure ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities There are no communities in Djibouti that fulfill this ESS' definition of indigenous people. ESS8 Cultural Heritage This standard is not relevant. There is no constructions/civil works under this project. ESS9 Financial Intermediaries This standard is not relevant. There is no financial intermediary involved in this project. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE Nov 16, 2020 Page 7 of 9 The World Bank Djibouti Digital Foundations Project (P174461) A. Is a common approach being considered? No Financing Partners NA B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: The following documents will be prepared, adopted and disclosed prior to appraisal: *Environmental and Social Management Framework (ESMF), which includes an electronic waste management procedure *Labor Management Procedures (LMP) *Stakeholder Engagement Plan (SEP) Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): * The Borrower will designate a focal point in the PIU for the implementation of all ESF instruments – prior to project effectiveness. The Borrower will prepare, adopt and implement the Electronic waste management plan *The Borrower will implement all the ESF instruments outlined above. Public Disclosure C. Timing Tentative target date for preparing the Appraisal Stage ESRS 01-Jan-2021 IV. CONTACT POINTS World Bank Contact: Timothy John Charles Kelly Title: Lead Digital Development Specialist Telephone No: 5358+6050 / 251-011-5176050 Email: tkelly@worldbank.org Borrower/Client/Recipient Borrower: MEFIP -- Ministère de l’Economie et des Finances, Chargé de Industrie et de la Planfication Implementing Agency(ies) Implementing Agency: ANSIE -- Angence Nationale des Systemes de d'Information de l'Etat V. FOR MORE INFORMATION CONTACT Nov 16, 2020 Page 8 of 9 The World Bank Djibouti Digital Foundations Project (P174461) 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): Timothy John Charles Kelly Practice Manager (ENR/Social) Pia Peeters Recommended on 16-Nov-2020 at 05:14:14 GMT-05:00 Safeguards Advisor ESSA Gael Gregoire (SAESSA) Cleared on 16-Nov-2020 at 14:25:15 GMT-05:00 Public Disclosure Nov 16, 2020 Page 9 of 9