INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA7845 Public Disclosure Copy Date ISDS Prepared/Updated: 21-Apr-2014 Date ISDS Approved/Disclosed: 21-Apr-2014 I. BASIC INFORMATION 1. Basic Project Data Country: Uzbekistan Project ID: P133703 Project Name: Horticulture Development Project (P133703) Task Team Dilshod Khidirov Leader: Estimated 17-Apr-2014 Estimated 10-Jun-2014 Appraisal Date: Board Date: Managing Unit: ECSAR Lending Investment Project Financing Instrument: Sector(s): Agricultural extension and research (23%), SME Finance (77%) Theme(s): Rural markets (100%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Financing (In USD Million) Total Project Cost: 160.00 Total Bank Financing: 150.00 Public Disclosure Copy Financing Gap: 0.00 Financing Source Amount Borrower 10.00 International Bank for Reconstruction and Development 150.00 Total 160.00 Environmental B - Partial Assessment Category: Is this a No Repeater project? 2. Project Development Objective(s) The project development objective is to enhance the productivity and profitability of horticulture sector in the project area. 3. Project Description The project components will be: (i) Agricultural Support Services, (ii) Access to Credit, and (iii) Project Management. Page 1 of 12 Component 1: Agricultural Support Services (US$32.03 mln). This component will (i) strengthen the capacity of participating research institutes and plant protection services to provide demand Public Disclosure Copy driven, participative technology transfer that will help the farmers to respond to the emerging market opportunities; (ii) enhance the capacity of farmers to improve quality and productivity of their product, as well as to identify and respond to market opportunities both domestically and in export markets; (iii) improve the country’s food safety management system, as well as ensure their regulatory harmonization with international food safety requirements. Sub Component 1.1 Institutional Support Services. This sub-component will support the strengthening of the capacity of the participating institutions to undertake applied research and genetic material multiplication activities so that they can better provide the technological bases for the horticulture production systems to be supported under the project. It will also aim to enhance the human, institutional and technical capacity of the research institutes to improve the safety and quality of fruits and vegetables to local consumers and export markets. The specific activities to be supported include: a) Strengthening the participating research institutes. The project will: (i) strengthen the capacity of the research institutes to develop pest surveillance maps focusing on horticulture crops, to forecast pest outbreaks and disseminate the same to the farmers; (ii) strengthen the laboratories by supplying equipment, renovating the laboratories, and training the laboratory staff to improve the quality of soil testing and pest and disease identification and prevention; and (iii) establish modern storage facilities for elite potato seeds in the Research Institute for Vegetables Melons and Potato (RIVMP) to decrease dependency on imports. b) Industry Standards. The project will assist producers in adopting good production and handling practices according to various internationally recognized food safety systems. Drawing on international experience, the project would support the development a modern food safety system tailored to country’s horticulture sector, including improving the regulatory framework, control Public Disclosure Copy policy, sampling and inspection procedures, accreditation and management rules, tools and training of relevant stakeholders. The project will support: (i) preparation of a study to assess the gaps between existing domestic rules/regulations and food safety practices in the field, gaps between current food safety practices in Uzbekistan and the required international standards, and identify options to bridge these gaps; (ii) the development of manuals for horticulture product quality management and packaging requirements, for various products in various countries where products from Uzbekistan are or could be exported; and (iii) technical assistance to private-public voluntary associations for the collection and dissemination of information about private-sector standards in domestic and destination markets. IFC will participate in these activities through the Agribusiness Standards Advisory Program, focusing on bridging the gap between sector/industry needs and policy requirements. The project will also organize study visits to the selected countries to familiarize the Uzbek officials and technical specialists with regulatory f rameworks and the ways/methods food safety risks are evaluated, managed and communicated. Sub Component 1.2 Market-led agricultural technology transfer. This sub-component aims to bridge the knowledge and experience gap related to new production techniques, storage, post-harvest handling (PHH), as well as marketing and business management knowledge. The knowledge management and market information system to be developed under the project will create greater transparency and understanding of the market and help attract additional investments. The project will support the value chain development through building productive value chains/productive Page 2 of 12 partnerships; establishing an Association of Fruits and Vegetable Industry; developing an evaluative study on the country’s export and domestic marketing policies; and arran ging visits to various trade events. These activities would help farmers and policy makers increase competitiveness of the sector, Public Disclosure Copy as well as develop understanding about the strategic direction for horticultural sector development in Uzbekistan and provide information about new markets opportunities and possibilities that exist. a) Knowledge Management and Market Information System (KMMIS). This sub-component aims to increase horticulture productivity by strengthening farmer access to and awareness about improved production technologies and practices. It will support provision of demand driven extension services for horticulture crops through a variety of approaches, including participative bottom up planning, exposure visits, trainings, demonstrations, field days, and use of media and information technology. Special attention will be given to the inclusion of vulnerable groups (such as women, elderly, youth, unemployed) in such activities. This subcomponent will finance the establishment of a web-based KMMIS, where all technological and market information will be collected, processed, analyzed and disseminated via various channels (electronic, publications, mass- media, training, etc). Topics to be covered include the efficient and sustainable production and post- harvest practices for meeting volume, timing, quality requirements of different markets (both domestic and export markets – current and potential) and business management knowledge. This sub-component will support the preparation of four types of studies: (i) existing markets for existing products, (ii) new potential markets for existing products, (iii) market situation and outlook for products, which are produced in Uzbekistan, (iv) market situation and outlook for new products. b) Demonstrations of Improved Technologies and Practices. The sub-component will support the establishment of demonstration plots (e.g. open field and greenhouse vegetables and potatoes, fruits & berries, post-harvest handling and storage). These demonstration plots will be conducted in volunteer farmer’s fields where new technologies can be demonstrated by the participating research institutes, input and equipment suppliers and implementing agency’s team of international advisors to farmers. Modular training programs for all issues related to record keeping and marketing will also be developed jointly with participating research institutes to help farmers improve efficiency of their Public Disclosure Copy businesses and quality of their produce. The component will also support a limited number of study tours. c) Value Chain Development: The project will support the value chain development through (i) building of value chains/productive partnerships; (ii) establishing the Fruits and Vegetable Association; (iii) promoting trade through involvement of horticultural producers in various national and international trade events; and (iv) assessing export and domestic marketing policies of Uzbekistan, and developing a set of policy recommendations to address existing challenges. (i) Value Chain/Productive Partnership Development. The project will promote building of value chains and productive partnerships between producers and processors, producers and traders, etc. This activity will include market/demand research for the specific type of product to be sold, training of the chain participants, technical advice on inputs and technologies, sales and marketing advice, etc. (ii) Fruits and Vegetable Industry Association of Uzbekistan. The sub-component will support the establishment of the Fruits and Vegetable Industry Association of Uzbekistan. The Association will represent interests of the horticulture industry in Uzbekistan; play an active role in encouraging technological innovation for production, packing, handling, storing and processing of produce; and support the development and extension of applied research that benefits the horticultural sector. The Page 3 of 12 Association will assist targeted farmers to come together to assemble quantities and varieties of produce in sufficient quantity to supply buyers and build farmer market power. The Association will closely work with the research institutes as well as farmers, traders an d processors, and will Public Disclosure Copy eventually become the voice of the industry and serve as a communication vehicle between private and public sectors. International and local consultants will develop a strategy, action plan and manual on operationalization of the Associati on. (iii) Trade Promotion. The project will support producer participation in national and international trade shows to promote investments and exports, and to improve quality of production, marketing and investment decisions. The project will also organize visits of large buyers from key countries to Uzbekistan (e.g. a group of supermarket procurement managers and buyers from leading i mport companies from Russia could be invited). This set of activities will also include support for studies to learn from countries with advanced horticultural subsectors about successful policies (Chile, Holland, South Africa, Turkey and USA). These studies will be complemented by study tours for the policy makers. (iv) Assessment of export and domestic marketing policies in Uzbekistan: This subcomponent will support studies and workshops to review the current export and domestic horticulture policy and regulatory framework in Uzbekistan, assess it impact and examine options for improving it to promote more rapid growth of the horticultural se ctor, drawing international best practice experience. Component 2: Access to Credit (US$118.5 mln). The subcomponent aims to enhance access to financial services for farmers and agribusinesses operating in Uzbekistan’s horticulture sector, to enable them to undertake the investments to strengthen their productivity and competitiveness. It will support activities including the purchase of new cultivars, seeds/seedlings, water-saving irrigation facilities (such as drip irrigation), cold storage and other cold chain facilities, and value added handling/processing equipment and facilities. The component will build on the experience gained during Second Rural Enterprise Support Project (RESP II) which has achieved sizeable results with Public Disclosure Copy the provision of financial services to Uzbekistan’s agricultural enterprises. The component will further expand access to investment financing through additional lending resources for use by banks and leasing companies for on-lending to farmers and agribusiness. The project will also support introduction of new financial products to support development of value chains in the sector. Potential PFIs: The PFIs under the project are Hamkor Bank, Mikrokreditbank, Qishloq Qurilish Bank, Turon Bank (all PFIs under the on-going Second Rural Enterprise Support Project), as well as new potential PFIs: InfinBank, Ipak Yoli Bank, Ipoteka Bank, Xalq Bank. Uzbekleasing. They have all been pre-qualified for undergoing due diligence. The nine potential PFIs are interested to support development of the horticulture sector and working with such borrowers, as well as their interest to participate in the training offered by the project. There is scarcity of long-term resources in the banking sector, which is one of the main issues hindering investment lending to agriculture. This derives from the situation that outside of donor projects, the overwhelming majority of deposits in the banking sector are demand deposits and thus they are not suitable for long-term lending. The project will attempt to alleviate the lack of long-term financing for the horticulture sub-sector by providing funding with a 20-year maturity to the banking sector to be revolved in the PFIs. Sub-component 2.1: Credit Line for Banks and Leasing Companies (IBRD Loan of US$107.89 mln and Sub-borrower contribution of US$1 0 mln). This sub-component will finance investment and working capital loans, principally for agribusinesses operating in the horticultural sector. The current Page 4 of 12 needs of agribusinesses for financing far exceed the long-term funds available to commercial banks, as shown by the high demand for investment funds under RESP II. Particularly, attention will be focused on investments supporting the enhanced competitiveness of the sector, access to new Public Disclosure Copy technologies, value addition in the sector, and improved market access through encouraging establishment of linkages between farmers, processors and traders. In addition, the project would introduce a range of innovative structured finance products, to support development of market linkages and value chains, encouraging collaboration among the various participants of the value chains. Similarly to RESP II, the funds will be on-lent by the Ministry of Finance to qualified participating financial institutions (PFIs), i.e., commercial banks and leasing companies. The implementation of this component will be carried out by the Rural Restructuring Agency (RRA), which has prior extensive experience in implementing World Bank projects, including with credit lines (Rural Enterprise Support Projects 1 and 2, as well as the Additional Financing to the RESP II – a credit line of US$40 million). The Ministry of Finance, representing the Borrower, the RRA and each qualified PFI will sign a Subsidiary Loan Agreement for the purposes of implementing the project’s credit line. A separate Operational Manual for the Credit Line will determine the criteria, eligible activities, detailed withdrawal procedures, and responsibilities of all parties implementing the Credit Line. Key terms and conditions of the credit line: (a) Sub-loans will not be used to finance activities that involve child or forced labor in any form. The activities of all potential Project beneficiaries will be pre-screened and regularly monitored to ensure that they are not related in any form to child or forced labor. Should child or forced labor cases be found, the right of the Beneficiary to use the proceeds of the sub-loans will be suspended and terminated, and declared to be immediately due and payable to the PFI. The PFI will return the funds to the RRA, and this amount will be canceled from the Bank loan. The PFI will be disqualified from further participation in t he project’s Credit Line and the PFI’s entire outstanding sub-loan portfolio financed by the project will be transferred to another PFI for servicing. Public Disclosure Copy (b) Sub-loans will not be used to finance activities that involve land acquisition or resettlement of people or loss of assets or income. (c) The PFIs will receive the credit line proceeds under the framework of the Subsidiary Loan Agreeme nt and on-lend to eligible beneficiaries for implementation of eligible sub-projects in accordance with the Operational Manual, and their banking considerations. (d) The PFIs will receive credit line proceeds for up to 20 years, inclusive of a grace period of 7 years, and repay the principal amount to the MOF over the period of 13 years in equal semi-annual payments, upon expiration of the grace period. Any amounts, received as repayment from the sub- borrowers and not needed for repayment to the MOF, the PFIs will revolve internally, providing new sub-loans/leases in compliance with the PDO and the operational guidelines for the credit line. (e) The funds will be available both in Uzbek Sums (UZS) and US Dollars, based on the demand of the sub-borrowers. The MOF will assume the foreign exchange risk on the portion of the credit line funds channeled through the PFIs for on-lending to the ultimate beneficiaries. (f) The proposed interest rates to the PFIs are: (i) The interest rate for Subsidiary Loans denominated in US Dollars shall be equivalent to the Page 5 of 12 base rate, which will be the prevailing interest rate at which the Borrower shall have received loan proceeds from the World Bank plus a spread of not less than 2% set by the Borrower from time to time, and agreed to by the Bank, to compensate the Borrower for the administrative costs associated Public Disclosure Copy with the Subsidiary Loan; (ii) The interest rate for Subsidiary Loans denominated in UZ Sums shall be equivalent to the base rate, which will be the prevailing interest rate at which the Borrower shall have received loan proceeds from the World Bank plus a spread of not less than 7% set by the Borrower from time to time, and agreed to by the Bank, to compensate the Borrower for: (1) the administrative costs associated with the Subsidiary Loan; and (ii) provide a small premium to compensate for the risks associated with currency exchange. (g) The maximum loan/lease size will be up to US$2 million, to ensure financing for larger loans to invest in cold storages and agro-processing equipment, as well as to support entire value chain development. Working capital loans will be up to US$200,000 for up to 18 months, and the value chain financing products will have the maximum loan size of up to US$2 million and maturity will depend on the nature of the transaction this loan will finance. (h) The maximum maturity of the sub-loans/leases will not exceed 10 years or the amortization period of the asset, whichever is shorter. The actual size and maturity of the loans/leases will depend on the type of investment financed, profitability of the activity, cash-flows generated, collateral, and other baking considerations. (i) Maximum financing share: The project will finance up to 100% of the sub-loans/leases in US Dollars, while requiring 20% co-financing from the PFIs for UZ Sum sub-loans/leases. The sub- borrowers will be required to contribute 20% of the sub-project financing for both USD and UZ Soums. Sub-component 2.2: Technical Assistance to PFIs (tentatively US$0.6 million). Given the novelty of Public Disclosure Copy the non-traditional financial products to support value chain development, the project will implement a capacity building program for the financial institutions involved in the project. The training program will build on the Investment Lending and Leasing in Agriculture training carried out under the RESP II. The training program will cover: (i) value chain financing products; and (ii) tree-crop financing methodologies. The PFIs will receive training on applicability of the new financial products in lending to horticulture-related activities, assessing the suitability and effectiveness of these new financial products, and on mitigation of the related risks. The training will be about 5 days long, and will be targeting loan officers and branch managers of PFIs. An international bank training company will be hired under the project, to do the initial training, as well as transfer this specific knowledge to a local bank training company, which will take over the training activities at the later stages of the project. For the PFIs trying to test value chain financing products, a longer-term (resident) Technical Assistant (TA) will be provided, to ensure that PFIs can appropriately structure the deal and manage the risks. In addition, all PFIs will have to undergo Environmental Training. The project will collaborate with IFC on PFI training in the following manner: (i) IFC will provide comments on the terms of reference and training manuals for the PFI training under HDP; (ii) the bank training program under the project will incorporate information on the work done by IFC at Hamkorbank, including, the experiences of setting up an agricultural lending unit, and a credit scoring product that IFC has developed (along with other similar products, to allow for choice); and (iii) regular reviews of the joint activities under the Access to Finance component will take place to Page 6 of 12 ensure coordination and complementarity. Component 3: Project Management (US$9.47 mln). The component will be focused on Public Disclosure Copy strengthening the Rural Restructuring Agency (RRA’s) capacity for project management, monitoring and evaluation through the provision of goods, consultant services, training and financing of incremental operating costs. This component will: (i) support operation of RRA, and finance overall project management, as well as contract administration, procurement, and financial management; and (ii) establish a robust performance based Management Information System (MIS) and beneficiary satisfaction survey, and arrange for data collection and reporting on key performance output and impact indicators, through baseline surveys, participatory assessments, mid-term review and final evaluation. In addition, the RRA will arrange awareness raising activities, as well as training of beneficiaries on national legislation against child and forced labor. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project will be implemented in eight regions of Uzbekistan, namely Andijon, Jizzak, Ferghana, Kashkadarya, Karakalpakstan, Namangan, Samarkand, and Tashkent. All these regions, with the exception of Karakalpakstan, are the country’s top fruits and vegetables producing regions, with the largest total area planted to horticultural crops. These regions are also known for their favorable climate conditions for growing horticultural products. The Karkalpakstan region is included as it is one of the poorest regions in the country, where agriculture diversification offers opportunities for improving rural livelihoods. The HDP activities will complement the proposed South Karakalpakstan Water Resources Management Improvement Project. 5. Environmental and Social Safeguards Specialists Mark C. Woodward (ECSSO) Arcadii Capcelea (ECSEN) Jennifer Shkabatur (ECSSO) Public Disclosure Copy Ekaterina Romanova (ECSSO) 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 Yes Physical Cultural Resources OP/ No BP 4.11 Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP No 4.12 Page 7 of 12 Safety of Dams OP/BP 4.37 No Public Disclosure Copy 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 proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The project triggers two WB OPs and specifically OP 4.01 on Environmental Assessment and OP 4.09 on Pest Management. The OP 4.01 is triggered as the project aims to support a series of activities which will generate some environmental and social impacts. These impacts are addressed in the EMF which includes also pest management plan that addresses the potential purchase of pesticides under the Credit Line and includes a screening checklist, mitigating measures and a program that supports the implementation of an integrated pest management (IPM) program as potential alternative to the use of pesticides. In addition, the project will support training, technical assistance and demonstration in support of the IPM program. The project is not expected to have any significant or irreversible environmental impacts and is classified as Environmental Category “B”. The Credit component will on-lend to farmers and business related to horticulture (including, but not limited to provision of farming services, storage, distribution and cooling facilities, processing, financing of agricultural inputs, including pesticides, seeds and planting , etc.). The majority of credit line subprojects/projects components would fall under the Category B which might cause limited significant impacts, for which the Public Disclosure Copy Bank requires a simple Environmental Assessment and/or a preparation of an Environmental Management Plan. All subprojects under the Credit Line will be screened and none on Category A will be supported. It is also expected that many of supported subprojects will not have environmental impacts at all and will fall under the Category C projects. Generally investments in agricultural production, agro-processing and storage and cooling facilities, are not expected to cause significant adverse environmental and social impacts; they will not be located in protected areas, critical habitats or culturally or socially sensitive areas; and will not entail increase in the amount of water abstracted from existing rivers or have any other impact on the water source or local hydrological regime. Their potential adverse environmental impacts might be summarized as follows: (a) agricultural production: soil erosion, loss of soil productive capacity, soil compaction, soil pollution, surface and underground water pollution, health and environmental risks associated with agro-chemicals use, loss of biodiversity; (b) agro-processing: contribution to surface water pollution, wastes generation, odor; (c) manufacturing: air pollution, waste waters, solid waste generation; (d) construction: soil and air pollution; acoustic, aesthetics impacts, etc. All these impacts are expected to be easily mitigated through sound project design and implementation practices. As the project may finance the purchasing of fertilizers/pesticides as well as may create conditions which may lead to increased use of pesticides even if not financed by the project, among other important potential project risks are health risk as well as the risks of undermining the Page 8 of 12 sustainability and productivity of the agro-ecological system (e.g., destroying natural enemies of crop pests; causing development of pesticide resistance among pests, etc.). Thus the OP 4.09 is triggered. Public Disclosure Copy It is also necessary to mention that sub-projects that are to be supported under the New Credit Line Project Component will generate both direct and indirect positive social impacts. Direct positive impacts will be generated by increased production of products and goods which could result in creation of new jobs and, respectively, more employment and increased income. Indirect positive impacts are expected to relate to the overall improvement of business environment in the agricultural sector, increased exports and enterprises, more secured domestic market position, introduction of advanced technologies and techniques, creation of new opportunities for access to foreign markets, enhancement of competitiveness of domestic production and products, contribution to poverty reduction and food security, and an improvement of country's socio- economic conditions. As all proposed activities are likely to be implemented within the existing agricultural land and settlement boundaries, the proposed project will likely not have an impact on wildlife and natural habitats and thus, OP/BP 4.04 (Natural habitats) is not triggered. It is also expected there will be no impact on physical cultural resources, which are generally not placed in the vicinity of agricultural land. Therefore OP/BP 4.11 "Physical Cultural Resources" is not triggered. Private businesses will be eligible to become project beneficiaries under the condition that their activities do not involve any form of child or forced labor, they have not acquired and/or would not acquire land for the needs of activities to be supported with the project proceeds, through a process which involved and/or would involve officially supported expropriation. Additionally, project funds will not support any sub-loans used to invest in a business which would require the involuntary displacement of existing occupants or economic users of any plot of land, regardless of its current ownership, or loss of, or damage to, assets including standing crops, kiosks, fences and other. The project operational manual will define a screening procedure to be filled by PFIs, Public Disclosure Copy and the implementing agency will closely monitor the screening procedure, with the support of the Bank task team. With these restrictions in place, the project does not trigger OP/BP 4.12 "Involuntary Resettlement". 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The cumulative impact of the activities which might be supported by the proposed project is expected to be mostly positive and includes improved knowledge on best agricultural and manufacture practices, with consequent improvements in the status of the environment in the country , as well as improved employment opportunities. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The task team has analyzed the possible implications of a "no project" scenario and concluded that in the absence of the proposed Bank financing there is an increased probability for negative economic and social consequences in the country, stemming from the deterioration of country's macroeconomic situation. 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. The HDP is proposed to be managed and implemented by the Rural Restructuring Agency (RRA), Page 9 of 12 an institution that is currently implementing the Second Rural Enterprise Support Project, GEF Climate Change and Land Degradation Project, and other donors’ projects. The RRA has already established office premises in the country’s capital, with trained and professional staff that have Public Disclosure Copy experience implementing agriculture and rural development projects. Due to the complexity of the implementation of the large number of components under the RESP II, the necessity to directly liaise with regional and district government, and the importance of constant access to project beneficiaries (farmers in project regions), the RRA has also established small offices in the eight project regions. At present the regional offices provide day-to-day management of implementation activities, as well as fulfilling monitoring and reporting functions. The RRA has adequate capacity and sound track record under the RESP II that ensures sufficient experience and capacity to effectively implement the HDP. It will recruit additional specialists (Procurement, Financial Management, Environment, M&E, etc.) and they will be trained in Bank’s procedures. The Bank will continue to provide regular implementation support. As of today, compliance with the Environmental Management Framework under the RESP II & GEF project has been generally satisfactory. The performance of the RRA environmental specialist will be closely monitored with additional support provided if needed. While RESP II did not trigger any social safeguards (like the current project), the project unit has done a commendable job of addressing a range of other social issues such as gender (jobs for women) and child labor. A social assessment has been prepared and identified social issues to be addressed throughout the project implementation. The project team will continue this effort to build capacity on social issues with the project unit. The project will be subject to a World Bank-managed Third Party Monitoring (TPM) and Feedback Mechanism (FBM), financed through a separate Trust Fund that focus on child and forced labor issues. With an aim to eliminate child and forced labor, the World Bank and Government of Uzbekistan have agreed on an initial list of projects which would be subject to TPM and FBM and this project is one of them. The objectives of the TPM/FBM will be to collect evidence on the potential use of child or forced labor by project beneficiaries or in project areas and it will implemented by an international consulting firm with experience in social auditing. In order to address safeguards policy issues the RRA prepared an Environmental Management Public Disclosure Copy Framework (EMF). The EMF document outlines environmental assessment procedures and mitigation requirements for the subprojects which will be supported by the Credit Line. It provides details on procedures, criteria and responsibilities for subprojects preparing, screening, appraisal, implementing and monitoring. The document also includes Environmental Guidelines and Best Practices for different types of proposed subprojects providing analysis of potential impacts and generic mitigation measures to be undertaken for subprojects in agricultural production, agro- processing and storage and cooling manufacturing sectors at all stages - from identification and selection, through the design and implementation phase, to the monitoring and evaluation of results. Furthermore, the EMF provides a monitoring plan format which considers monitoring indicators, timing, methods, institutional responsibilities, etc. in all phases of project's implementation. Also a pest management plan is included in the EMF to address the potential purchase of pesticides under the Credit Line that includes a screening checklist, mitigating measures and a program that supports the implementation of an integrated pest management (IPM) programs as potential alternative to the use of pesticides. The project will support training, technical assistance and demonstration in support of the IPM program. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. As a part of Safeguard Policies a consultation workshop was held with project stakeholders on February 13, 2014 where the representatives of the State Government organizations, commercial Page 10 of 12 organizations and NGO’s in the field of environment and pest management as well as with representatives of local commercial banks and Rural Restructuring Agency participated. A lively discussion followed on many aspects of the project for the component of Access to Credit, Public Disclosure Copy screening mechanism for checking sub-loans and implementation arrangements, etc. The draft EMF was disclosed in country on February 17, 2014. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 19-Feb-2014 Date of submission to InfoShop 10-Mar-2014 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure Uzbekistan 17-Jan-2014 Comments: Pest Management Plan Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 19-Feb-2014 Date of submission to InfoShop 10-Mar-2014 "In country" Disclosure Uzbekistan 17-Feb-2014 Comments: 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. Public Disclosure Copy 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 Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? If yes, then did the Regional Environment Unit or Sector Yes [ ] No [ ] NA [ ] Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP 4.09 - Pest Management Does the EA adequately address the pest management issues? Yes [ ] No [ ] NA [ ] Is a separate PMP required? Yes [ ] No [ ] NA [ ] If yes, has the PMP been reviewed and approved by a Yes [ ] No [ ] NA [ ] safeguards specialist or SM? Are PMP requirements included in project design?If yes, does the project team include a Pest Management Specialist? Page 11 of 12 The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Public Disclosure Copy 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 [ ] 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: Name: Dilshod Khidirov Approved By Regional Safeguards Name: Agnes I. Kiss (RSA) Date: 18-Apr-2014 Advisor: Sector Manager: Name: Dina Umali-Deininger (SM) Date: 21-Apr-2014 Public Disclosure Copy Page 12 of 12