The World Bank Productive Economic Inclusion In Lebanon (P180905) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 03/20/2024 | Report No: ESRSC04191 Feb 07, 2025 Page 1 of 7 The World Bank Productive Economic Inclusion In Lebanon (P180905) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P180905 Investment Project Financing (IPF) Productive Economic 2025 Inclusion in Lebanon Operation Name Productive Economic Inclusion in Lebanon Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Lebanon Lebanon MIDDLE EAST AND Social Protection & Jobs NORTH AFRICA Borrower(s) Implementing Agency(ies) Estimated Board Date René Moawad René Moawad Foundation (RMF) 18-Jul-2024 Foundation (RMF) Estimated Concept Total Project Cost Public Disclosure Review Date 26-Mar-2024 2,707,000.00 Proposed Development Objective The objective of the proposed project is to improve the welfare of low-income Lebanese households through productive economic inclusion. B. Is the operation 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 Activities The objective of the pilot is to improve livelihood opportunities for 1,500 households that are current beneficiaries of the ESSNP. Therefore, the PEIL Project complements the ESSNP by improving household welfare and resilience through productive economic inclusion. It strengthens sustainable pathways out of poverty by reducing household dependence on government assistance. To achieve the intended objectives of the pilot, it will be composed of the following three components, based on well-evaluated programs around the world : (1) designing a data-driven economic inclusion program for Lebanon; (2) implementing the pilot program; and (3) monitoring and evaluation to quantify the impact and Feb 07, 2025 Page 2 of 7 The World Bank Productive Economic Inclusion In Lebanon (P180905) cost-effectiveness of the pilot. Through these activities, the project aims to inform the scale up of an economic inclusion program across Lebanon. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings The Productive Economic Inclusion in Lebanon project (PEIL) is a small grant project ($2.71 million). The pilot does not involve any infrastructure or civil works. It is comprised of three components as mentioned above, and will select 1,500 beneficiaries that are current beneficiaries of the Emergency Social Safety Net Project (ESSN), and that meet specific criteria based on poverty and vulnerability levels, education qualifications and past work experience. The pilot aims to improve the household welfare and resilience of the selected beneficiaries through productive economic inclusion. . The beneficiaries may most likely be selected from Mount Lebanon and Akkar geographic regions of Lebanon based on the high concentration of social safety net beneficiaries in those regions. Lebanon is divided into four distinct physiographic regions: the coastal plain in the west, the Lebanon mountain range in the middle, the Beqaa valley in the east, and the Anti-Lebanon mountains in far east near the borders with Syria. Large socio-economic disparities exist in the country, with the North and Bekaa governorates having the poorest populations and lowest socioeconomic indicators. According to the multi-dimensional poverty index of Lebanon (World Bank, May 2022), across the eight governorates, Akkar and Bekaa are the poorest, with approximately a third of Lebanon’s MPI- poor residing in Mount Lebanon where about 41% of the population of Lebanon reside. The economic crisis has increased the poverty rate, which reached 82% in 2021, up from 45% in 2019, 30% in 2018, and 27.4% in 2011–2012. Vulnerable Lebanese households face challenges accessing food, healthcare, education, and other basic services. Public Disclosure Unemployment rate reached 30% in 2022 up from 11% in 2019 (ACAPS, 2022) and as a result demand for employment opportunities across the country is high. About 1.5 million Syrian refugees put strains on already fragile services in Bekaa and Baalback regions and increase vulnerability. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts The project is proposed to be implemented by Rene Mouawad Foundation (RMF), through a grant provided by the World Bank Group. The Rene Mouawad Foundation (RMF) is a national Lebanese NGO that has been working since 1991 across Lebanon with the mission to promote social, economic, and rural development in Lebanon and the MENA region. This is RMF’s first WB financing project and the first project under the World Bank’s Environmental and Social Framework (ESF). The RMF team has a safeguards and gender specialist who has limited knowledge and experience on the WB ESF and safeguards requirements and will need support to follow up on the preparation of the ESF instruments and the implementation thereafter of the ESF requirements. The WB team will provide continuous support as needed and throughout the project life-cycle. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate A.1 Environmental Risk Rating Low Feb 07, 2025 Page 3 of 7 The World Bank Productive Economic Inclusion In Lebanon (P180905) The environmnetal risk rating is rated low. The project will not have any civil or construction works or operation of machineray that would generate waste, cause environmental nuisance or pose risks to the environment. The project interventions are soft in nature, such as conducting surveys, providing training, mental health support, and child care support that are associated with no or low/negiligble impacts on the environment. Moderate A.2 Social Risk Rating The social risk is rated moderate. The project pilot will select 1,500 beneficiaries from the current Emergency Social Safety Net (ESSN) (P173367) beneficiary households to provide self employment opportunities to one working-age member of 1,500 selected households in Mount Lebanon and Akkar regions, based on the high concentration of social safety net beneficiaries in those regions. The current ESSN is focused predominantly on 160,000 beneficiary Lebanese HHs (further to the recent 2ND AF where the coverage was expanded from 105,000 to 160,000 beneficiary households.) and regardless of ethnic/religious sects. All beneficiary HHs under ESSN belong to at least one of four vulnerable categories: (1) female-headed HHs; (2) HH has an elderly (aged 65 or more); (3) HH has a disabled member; and (4) HH has a child (aged under 18). ESSN targets poor Lebanese HH that meet specified criteria and does not include refugee communities. Additional details on the ESSN beneficiaries can be found in the relevant E&S instruments under the 2ND AF which have been cleared and disclosed (April, 2023). The criteria for selection of beneficiaries under this pilot will be based on poverty and vulnerabiltiy levels, education qualifiations, skills and past work experience. Therefore, PEIL complements the ESSN by improving households welfare and resilience through productive economic inclusion thus having predominantly positive social impacts. In addition, the project will ensure that at least 50 percent of program participants are female. Some adverse risks include the perception of exclusion of certain vulnerable groups from the project benefits, the risk of insufficient communication of project specificities and Public Disclosure risk of a weak functioning grievance mechanism. These risks will be mitigated through effective communication campaigns, focus group discussions and consultation with project stakeholders including vulnerable groups, and the establishment of a robust grievance mechanism. B. Relevance of Standards and Policies at Concept Stage B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant The project will not have any civil or construction works or operation of machineray that would generate waste, or cause environmental nuisances or risks. It is mainly associated with positive social impacts as it will help improve the economic conditions of the selected beneficiaries further segmented from the current pool of beneficiaries under the ESSN, will contribute to a decrease in the number of HHs living under the extreme poverty line, will increase and build HH resilience, and will provide access to social care services including mental health support, and childcare support. The RMF PMU will add an addendum to the ESSN SIA to outline the project description of this pilot and will acknowledge the mitigation measures of the ESSN SIA and will commit to it as part of the ESCP. The social risks related to possible perception of exclusion of vulnerable groups and miscommunication of the project will be managed through the SEP which will be prepared before appraisal. ESS10 - Stakeholder Engagement and Information Disclosure Relevant Feb 07, 2025 Page 4 of 7 The World Bank Productive Economic Inclusion In Lebanon (P180905) Stakeholder include beneficiaries of the project who will be selected from the current ESSN cash transfer beneficiary HHs, other interested parties like NGOs representing the poor Lebanese HHs, Presidency of the Council of Ministers (PCM) which is the implementing agency for the ESSN , child care support service providers and mental health support service providers, and vulnerable groups which include those potential beneficiaries who do not know how to read or write, the elderly, those who have no access to the internet or other social media networks, female- headed HHs, and poor Lebanese HHs from the DAEM registry. The SEP will be prepared before appraisal and will identify all stakeholders, and will outline the modalities for engagement in a continuous and constructive manner . The RMF social safeguards specialist will also coordinate with the social safeguards specialist of the ESSN PMU throughout the project life cycle. ESS2 - Labor and Working Conditions Relevant The project will include (i) direct workers who will be comprised of the members of the Rene Mouawad Foundation (RMF) which is the project implementing agency, and (ii) contracted workers in coaching and life-skills trainings, financial literacy trainings and social care services such as mental health support, childcare support for children less than 5 years of age. The precise number of direct workers and contracted workers is not determined at this time. The RMF will prepare a stand-alone Labour Management Procedures (LMP) which will be cleared and disclosed by the project appraisal. A grievance mechanism will be established specifically for the project workers, and this will be outlined in the LMP. ESS3 - Resource Efficiency and Pollution Prevention and Management Not Currently Relevant Public Disclosure This ESS is not currently relevant. ESS4 - Community Health and Safety Relevant This ESS4 is relevant. While the project activities are not associated with infrastructure or civil works that may have an impact on community health and safety, the nature of the project activities may result in a risk of sexual exploitation and abuse and sexual harassment (SEA/SH) due to male and female project workers working in close proxmity and with low-level potential of limited supervision. The RMF will prepare minimum mitigation measures and actions to manage the risks of gender-based violence (GBV) and sexual exploitation and abuse and sexual harassment (SEA/SH) such as awareness raising, signing of codes of conduct by all project workers as identified in ESS2 and a GM sensitive to SEA/SH. The project will not include any security forces. These requirements will be incorporated as part of the LMP and in line with the provisions of the ESCP. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Not Currently Relevant This ESS is not currently relevant as this project does not require land acquisition, does not impact negatively on assets, or cause loss of assets. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Not Currently Relevant Resources This ESS is currently not relevant. Feb 07, 2025 Page 5 of 7 The World Bank Productive Economic Inclusion In Lebanon (P180905) ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities ESS7 is not currently relevant for this project because there are no indigenous peoples in Lebanon. ESS8 - Cultural Heritage Not Currently Relevant No risks/impacts on tangible or nontangible cultural resources, as there are no physical interventions by the project. ESS9 - Financial Intermediaries Not Currently Relevant No FIs will be used to disburse the funds. B.2 Legal Operational Policies that Apply OP 7.50 Operations on International Waterways No OP 7.60 Operations in Disputed Areas No B.3 Other Salient Features Use of Borrower Framework No The Borrower Framework will not be considered Public Disclosure Use of Common Approach No The common approach is not being considered C. Overview of Required Environmental and Social Risk Management Activities C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by Appraisal? The selected implementing agency will prepare the following instruments prior to appraisal: • The Stakeholder Engagement Plan (SEP) • The Labour Management Procedures (LMP) • The Environmental and Social Commitment Plan (ESCP) • Annex to the Social Impact Assessment (SIA) of the Emergency Social Safety Net (ESSN) project to describe the project description of this proposed pilot and to acknowledge mitigation measures under the ESSN SIA. All instruments will be cleared and disclosed prior to the appraisal stage. The ESCP will include provisions that the implementing agency will ensure that the mitigation measures for SEA/SH are included in the stand-alone LMP. The implementing agency’s safeguards and gender specialist will monitor satisfactory implementation of the cleared and disclosed instruments and will prepare progress reports in line with the provisions Feb 07, 2025 Page 6 of 7 The World Bank Productive Economic Inclusion In Lebanon (P180905) of the ESCP. The safeguards and gender specialist will attend relevant trainings, workshops and capacity building on the World Bank’s ESF requirements and the WB team will provide continuous and close support throughout the project life-cycle. III. CONTACT POINT World Bank Task Team Leader: Fahmina Rahman Title: Social Protection Specialist Email: frahman1@worldbank.org TTL Contact: Angela Elzir Job Title: Senior Social Protection Specialist Email: aelzir@worldbank.org IV. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Public Disclosure Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects V. APPROVAL Task Team Leader(s): Fahmina Rahman, Angela Elzir ADM Environmental Specialist: Linda Khalil ADM Social Specialist: Zeina Azar Feb 07, 2025 Page 7 of 7