INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Public Disclosure Copy Report No.: ISDSC2564 Date ISDS Prepared/Updated: 17-May-2013 Date ISDS Approved/Disclosed: 18-Jun-2013 I. BASIC INFORMATION A. Basic Project Data Country: Georgia Project ID: P133828 Project Name: Irrigation and Land Market Development Project (P133828) Task Team Peter Goodman Leader: Estimated 04-Feb-2014 Estimated 03-Apr-2014 Appraisal Date: Board Date: Managing Unit: ECSAR Lending Specific Investment Loan Instrument: Sector(s): Irrigation and drainage (90%), General agriculture, fishing and forestry sector (10%) Theme(s): Rural services and infrastructure (90%), Land administration and management (10%) Financing (In USD Million) Total Project Cost: 79.00 Total Bank Financing: 50.00 Public Disclosure Copy Total Cofinancing: Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 10.00 International Bank for Reconstruction and Development 25.00 International Development Association (IDA) 25.00 International Fund for Agriculture Development 19.00 Total 79.00 Environmental B - Partial Assessment Category: Is this a No Repeater project? B. Project Objectives The Project Development Objective (PDO) is to improve the delivery of irrigation and drainage services in selected areas and to ensure owners of irrigated or drained land in selected areas have registered land titles. C. Project Description The Project will consist of three components: (i) Component 1 - Irrigation and Drainage Improvement; (ii) Component 2 -Land Market Development; and (iii) Component 3 - Project Public Disclosure Copy Management. The Project budget will be US$75 million including US$50 million (IDA/ IBRD), US $15 million (IFAD) (to be confirmed), plus a government contribution which is assumed to be US $10 million (to be confirmed). The allocation of funding is provisionally expected to be as follows: Component 1 - Irrigation and Drainage Improvement (US$70 million); (ii) Component 2 - Land Market Development (US$ 4 million) and (iii) Component 3 Project Management (US$1 million). Component 1: Irrigation and Drainage Improvement Component ($74 million): This Component will involve three sub components: (i) Irrigation and Drainage Rehabilitation and Modernization; (ii) Institutional Strengthening of Irrigation and Drainage Institutions; and (iii) Water User Capacity Building on On-Farm Water Management and Agronomy. (i) Irrigation and Drainage Rehabilitation and Modernization Sub Component: This subcomponent would finance the rehabilitation and modernization of selected irrigation and drainage systems. It would support the rehabilitation of primary and secondary (off-farm) canals, tertiary (on-farm canals), small dams where necessary, and any other major structures as needed in the project areas. The Project will restore previously irrigated and drained areas only, and not build new schemes. Based on an assumed average cost of US$1500 per ha, (according to the recent IFAD supplementary financing design report) project funding would be sufficient to rehabilitate approximately 49,000 ha. While a large part of the rehabilitation will involve reconstruction of original systems, there will be opportunities to modernize water control and delivery structures, including automation of headworks or introduction of SCADA (supervisory control and data acquisition) to monitor and control water distribution in some of the larger canal systems. Low- pressure drip and sprinkler systems may also be employed in some schemes to improve water use efficiency. Public Disclosure Copy The United Amelioration Service Company of Georgia (UASCG) is currently undertaking a detailed inventory of infrastructure and preparing preliminary assessments of rehabilitation needs on all irrigation and drainage schemes which will inform the selection of schemes throughout the Project. Based on information collected to date, three schemes have been provisionally selected from a short- list of 15 schemes, subject to further legal, socio-economic and technical assessments. The three schemes proposed for rehabilitation include: - Zeda Ru (3,581 ha, 4,300 beneficiaries). Repair and rehabilitation of the entire on-farm system including cleaning and lining of secondary and tertiary canals, and structures along them such as intakes, cross-regulators, hydro-posts, outlets, crossings and culverts. - Kvemo Samgori (22,000 ha, 23,000 beneficiaries): Initially, the headworks for Kvemo Samgori Irrigation Scheme that requires replacement of the electro-mechanical works including connection to the power grid, installation of a standby power generator, replacement of obsolete electric and mechanical equipment, installation of an automatic control system for headworks operation, and construction and rehabilitation of structures such as water measurement devices. Further rehabilitation of off-farm and on-farm systems will follow in subsequent contracts. - Algeti Reservoir and Tbilisi-Kumisi Irrigation System (4,800 ha, 4000 beneficiaries): Rehabilitation and reconstruction of exiting dam structures and irrigation system primary and secondary canals including installation of equipment for instrumentation and monitoring of dam performance, rehabilitation of a dam gate, rehabilitation of a spillway, and cleaning and lining of canal structures along it such as intakes, cross-regulators, hydro-posts, outlets, crossings and culverts. (ii) Institutional Strengthening of Irrigation and Drainage Institutions Sub Component: Public Disclosure Copy This Sub Component will strengthen the capacity of key institutions, including the UASCG and Water User Associations (WUAs) to promote more sustainable management of irrigation and drainage systems. To improve the efficiency of water delivery, build capacity for design and rehabilitation, improve maintenance of irrigation and drainage systems and raise cost recovery, the Project will finance: - Off-Farm System Management including: (a) The development of proposals for organizational restructuring of the UASCG to undertake rehabilitation, maintenance, water delivery, WUA development and the preparation of operating procedures for the resulting department staff. Restructuring will include transformation of the existing UASCG water user support unit in UASCG into a WUA Support Unit (WUASU) discussed further below; (b) Design and installation of improved UASCG data management systems for asset operation and maintenance, water delivery, billing and financial management and associated training for UASCG staff; (c) Training of UASCG staff in modernization of irrigation schemes and funding of study tour to learn about the application of new technology in other countries; (d) Upgrading and equipping UASCG offices, procurement of vehicles and irrigation maintenance equipment subject to an assessment of the current inventory. - On-Farm System Management including: (a) Legal reviews and drafting of legal amendments for the improvement of the legal framework for Water User Associations; (b) Establishment of WUASU field offices including the purchase of office facilities, equipment and vehicles; (c) Operating costs for the WUASU to undertake public awareness, social mobilization, and support legal registration of WUAs; (d) Operating costs of the UASCG WUASU to provide of legal, organization development, financial and technical advice and training to WUA once established; (e) Establishment of WUA including the costs of office facilities and equipment; (f) Provision of machinery and equipment to WUA (or alternatively local service providers) for irrigation maintenance. - Improvement of Design Capacity: Long term maintenance of rehabilitated systems will also require improved design capacity. There are currently an insufficient number of irrigation design engineers Public Disclosure Copy in Georgia, particularly with skills in modernization of irrigation systems. The Project will finance the costs of employing and training young interns in Georgian Water Project during the life of the Project, to gain experience in irrigation design and help create a cadre of designers which can be contracted by Georgian Water Project, UASCG or WUA in future. (iii) Water User Capacity Building on On-Farm Water Management and Agronomy Sub Component: It is expected that other donors (notably USAID) are likely to take a lead in the institutional development of a public agricultural extension service. The Project will fund the preparation of extension material and delivery of specific advice to water users on target irrigation schemes on: (i) efficient on farm water-use; and (ii) opportunities for diversification post-irrigation rehabilitation; and (iii) associated agronomic practices. Training will include a focus on addressing issues of particular relevance to women and will encourage strong participation of women. This would be delivered by the emerging public extension servi ce and agricultural service centers in close cooperation with donors supporting their development. Component 2. Land Market Development: The Project will support: (i) the establishment of land rights based on land surveys and registered titles in areas benefiting under the Irrigation and Drainage Improvement Component; and (ii) creation of a land information system – to improve the quality of land information available to buyers and sellers and as a basis for improved MOA planning. The National Agency for Public Registry (NAPR) will be the key Project partner for this component. Public Disclosure Copy Component 3. Project Management Component: This component would finance overall project management, including coordination and technical supervision of the implementation, financial management, procurement, and monitoring and reporting on implementation progress. The Project triggers several safeguard policies: OP/BP 4.01 Environmental Assessment, OP4.09 Pest management, OP/BP 4.12 Involuntary resettlement, and OP/BP 7.50 Projects on International waterways. A need for triggering Op/BP 4.37 Safety of Dams and OP/BP 7.60 Projects in Disputed Areas will be examined during the Project preparation and the final decision will be taken by appraisal. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The Project will be implemented county-wide. Individual investments may be made in any irrigated and drained area of the country. Most of these investments will not be finally selected by the time of Project preparation. Schemes provisionally selected for the Project support in the early stage of implementation are located within Tetriskaro, Marneuli, Sagarejo, Sighnaghi, Gurjaani, Kareli and Gori. E. Borrowers Institutional Capacity for Safeguard Policies The MoA of Georgia will be the Project implementing agency. It has acted in this capacity for several World Bank supported projects in the past. This Ministry also has vast experience of collaborating with other multilateral and bilateral development agencies. It is expected that a Project Implementation Unit (PIU) will be established (most likely within the MoA) and will be responsible for fiduciary management, monitoring and evaluation. Key technical partners will be the Amelioration Policy Department and the Land Department of the MoA, as well as the NAPR. Public Disclosure Copy F. Environmental and Social Safeguards Specialists on the Team Darejan Kapanadze (ECSEN) Joanna Peace De Berry (ECSSO) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes The Project will help to improve irrigation and BP 4.01 drainage efficiency in several existing deteriorated schemes. This would imply rehabilitation or replacement of damaged hydraulic structures, and cleaning and lining of canals. No new schemes will be constructed and no new agricultural areas will be covered with irrigation/drainage services. Scheme rehabilitation will improve service provision to the areas currently covered and could allow service delivery to some of the areas previously served, but later cut-off due to deterioration of the infrastructure. The Project will improve efficiency of water use by decreasing water loss during transportation through the rehabilitation Public Disclosure Copy and upgrading of damaged canals, and by educating, training and advising farmers on optimal planning of irrigation and the use of new technologies. Activities proposed for the Project support trigger OP/BP 4.01 Environmental Assessment. Based on the nature and scope of the planned physical works, the Project is classified through environmental screening as Category B. Its expected environmental and social impacts are low to medium. The Project does not carry risks of destroying natural habitats, damaging forest stands, significantly altering hydrology of the natural waterways, or affecting other ecosystems in any tangible and/or irreversible ways. The Project will support works on the schemes most of which are not identified at the Project preparation phase, though the nature and scope of these works are well known upfront and will be mostly similar in various locations. An Environmental and Social Management Framework (ESMF) will be developed to cover all key aspects of screening, risk assessment, Public Disclosure Copy environmental evaluation and management planning of the schemes to be rehabilitated. Environmental screening of sub-project proposals will be part of their selection for the Project support. Screening will imply examination of water availability for the proposed irrigation schemes. ESMF will provide sufficient information on the expected impacts and needed mitigation measures of all proposed investments. Depending on the complexity and associated risks of individual sub-projects, their environmental assessment (EA) may be required, resulting in the production of an EA report, including an Environmental Management Plan (EMP). In most cases, though, it is expected that completion of a simplified Environmental Management Checklist for Small Construction and Rehabilitation Activities would be sufficient. ESMF will carry detailed guidance on the selection and application of relevant tools for environmental review and mitigation Public Disclosure Copy planning. It will provide instructions on the calculation and establishment of water intake limits for the selected irrigation schemes, so that the minimal ecological flow is preserved for protecting aquatic ecosystems of rivers. Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 Yes The project aims at improving water availability and drainage for the serviced areas and, possibly, restoration of some agricultural areas back to irrigation/drainage. It is anticipated that because of improved services delivery, agriculture will intensify in the coverage areas, which could entail more intensive usage of pesticides. Hence, OP 4.09 Pest Management is triggered despite the fact that the Project will not finance their purchase and/or support to their application. While there is no need to develop a Pest Management Plan, promotion of good pest and pesticide management practices will be included into the Project design. Namely, brochures, fliers, and posters on the sound and safe handling of pesticides, including Public Disclosure Copy information on the Integrated Pest Management (IPM), will be disseminated within the Project coverage areas. Linkages will be established with other donor-supported programs supporting development of agricultural extension services and vocational training in order to examine options for supplemental coverage of the project beneficiary farmers with TA aimed at the promotion of good agricultural practice and IPM. Water User Associations will play pivotal role in promotion of good agricultural practice to farmers. Physical Cultural Resources OP/ No BP 4.11 Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP Yes The rehabilitation of primary-, secondary- and 4.12 tertiary-level irrigation infrastructure may necessitate land acquisition, although every attempt will be made to agree rehabilitation design plans that minimize land acquisitions. The policy is triggered and a Resettlement Public Disclosure Copy Policy Framework (RPF) will be prepared for the project and disclosed in country and via the World Bank prior to Appraisal. Should land acquisition be required, the RPF will guide the development of site specific Resettlement Action Plans (RAPs) to ensure that the possible risks of resettlement, loss of land and loss of income are mitigated. Safety of Dams OP/BP 4.37 TBD Projects on International Yes Most of the irrigation schemes of East Georgia, Waterways OP/BP 7.50 including those provisionally identified for the Project support, abstract water from trans- boundary rivers Mtkvari and Alazani, or their tributaries. Water drained from the agricultural lands in West Georgia is discharged to the rivers draining into the Black Sea. Project interventions will not increase water intake or discharge beyond the designed parameters of the existing schemes, because they will be strictly limited to the rehabilitation of the existing irrigation and drainage infrastructure without altering of their original capacities. Therefore, while OP/BP 7.50 Projects on International Waterways is triggered, Public Disclosure Copy communication between the riparian states on the project interventions is deemed unnecessary. A waiver on the notification will be sought by the Project team from ECAVP. Projects in Disputed Areas OP/BP TBD 7.60 III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 31-Aug-2013 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS: ESMF will be drafted, publicly disclosed and discussed with the national stakeholders before appraisal. Site-specific EAs, as required, and/or EMPs for three schemes included in the first year work plan will also be drafted, disclosed, and discussed with stakeholders, with the emphasis on consultation with local communities. EAs/EMPs for other schemes will be developed later, during the Project implementation phase, once the schemes are identified and their designs become available. RPF will be drafted, disclosed, and discussed with national stakeholders by appraisal. Site-specific 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. RAPs will be prepared, as required, for individual investment activities once the designs are ready and resettlement needs are known. RAPs will be disclosed and discussed with stakeholders once drafted, will be finalized, and implemented prior to commencement of works at any given site. Public Disclosure Copy IV. APPROVALS Task Team Leader: Name: Peter Goodman Approved By: Regional Safeguards Name: Date: Coordinator: Sector Manager: Name: Dina Umali-Deininger (SM) Date: 18-Jun-2013 Public Disclosure Copy