The World Bank Philippines Civil Service Modernization Project (P180649) Concept Environmental and Social Review Summary Concept Stage ( ESRS Concept Stage) For Official Use Only Date Prepared/Updated: 05/21/2024 | Report No: ESRSC04306 May 27, 2024 Page 1 of 8 The World Bank Philippines Civil Service Modernization Project (P180649) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P180649 Investment Project Financing (IPF) PCSMP 2025 Operation Name Philippines Civil Service Modernization Project Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Philippines Philippines EAST ASIA AND PACIFIC Governance Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date Republic of the Civil Service Commission 15-Jul-2024 30-Sept-2024 Philippines Estimated Concept Total Project Cost For Official Use Only Review Date 26-Sept-2023 69,550,000.00 Proposed Development Objective To improve the efficiency and the quality of human resource and payroll management in selected national government agencies in the Philippines civil service. 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 [Description imported from the Concept Data Sheet in the Portal providing information about the key aspects and components/sub-components of the project] The proposed project will focus on the intersection of digital transformation, human resource management and organizational development (HRM&OD), improved service delivery and responsiveness to citizens. The following areas have been identified as components of a program to improve the functioning of the Philippines civil service: (a) Strengthening HRM Capabilities including the capacity of the CSC to lead and coordinate the reform process; (b) Digital Transformation of HRM in the Civil Service including the introduction of technological infrastructure to automate May 27, 2024 Page 2 of 8 The World Bank Philippines Civil Service Modernization Project (P180649) HR/personnel and payroll data; and (c) Change Management and Communication to Support HRM Transformation including the creation of a Project Management Unit and the development and implementation of change management and communications strategy. Improving bureaucratic efficiency through the acceleration of digital transformation in government is a key priority of the Government of the Philippines. This proposed project will support the development of a smart and future-ready civil service capable of delivering the public goods and services expected in a "middle class society." D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings [Description of key features relevant to the operation’s environmental and social risks and opportunities (e.g., whether the project is nationwide or regional in scope, urban/rural, in an FCV context, presence of Indigenous Peoples or other minorities, involves associated facilities, high-biodiversity settings, etc.) – Max. character limit 2,000] The project has three components, namely: (i) Strengthening the HRM capabilities of the CSC; (ii) Digital transformation of HRM in the civil service; and (iii) Change management and communication to support HRM transformation. All components are primarily investments in soft infrastructure and capacity building within the Civil Service Commission (CSC) and its partner implementing agencies such as the Department of Budget Management (DBM), Department of Information and Communications Technology (DICT), and the National Economic and Development Authority (NEDA), including but not limited to: development of an HR Competency Framework; establishment of an HR Certification System; strengthening and simplification of HRM frameworks, policies, and procedures; capacity building for HR-related learning and knowledge management; and digitalization of HR services for government, in addition to support for For Official Use Only change and project management. The Project will be contained within the offices of the CSC and its partner implementing agencies. All of the agencies have central offices within Metro Manila. The CSC has 16 regional offices across the country, none of which are located in conflict-affected areas. Partner implementing agencies likewise have offices at various levels of the government across different regions. The Project will not be implemented in communities and will not involve Indigenous Peoples as defined in the ESF. The overall environmental risk based on project type, location, and scale is assessed as low. As noted, the project is mostly investing in soft infrastructure, which will be bounded by the physical offices of the CSC and its partner implementing agencies – therefore, most physical considerations regarding the project location are not directly relevant. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts [Description of Borrower’s capacity (i.e., prior performance under the Safeguard Policies or ESF, experience applying E&S policies of IFIs, Environmental and social unit/staff already in place) and willingness to manage risks and impacts and of provisions planned or required to have capabilities in place, along with the needs for enhanced support to the Borrower – Max. character limit 2,000] This is the first engagement of the CSC with the World Bank on the ESF. There is also no recent experience on the old safeguards policies. However, the CSC is an independent body that ensures compliance with labor welfare, non- discrimination, performance and other standards in the civil service in accordance with international and national laws. May 27, 2024 Page 3 of 8 The World Bank Philippines Civil Service Modernization Project (P180649) The CSC also leads the responsibility for implementing the Citizen's Charter which ensures transparency, social accountability and participation of multi-stakeholders. The CSC also ensures compliance of government services to key legal provisions of the Labor Code of the Philippines and other national laws on non-discrimination of marginalized and vulnerable groups. As a national government agency, the CSC complies with relevant policies and regulations on solid waste management, including on the disposal of electronic wastes. These are good foundations for understanding ESS 2, ESS 3, and ESS 10 which are the main social standards relevant to the Project. The CSC has yet to designate environmental and social focal points. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Low A.1 Environmental Risk Rating Low [Summary of key factors contributing to risk rating, in accordance with the ES Directive and the Technical Note on Screening and Risk Classification under the ESF – Max. character limit 2,000] As currently designed, the potential adverse risks and impacts of the Project on people and the environment are likely to be minimal or negligible. Project activities are focused on improving the capacity and digitizing the management of the CSC. There are no physical/civil works expected, nor will any hard infrastructure investment plan be prepared under the Project. Hence, there are no impacts anticipated on greenfield or brownfield sites, nor are there any cumulative or transboundary environmental impacts expected, including on habitats and biodiversity. The project’s For Official Use Only key physical footprint will stem mainly from the procurement, installation, and operation of information and communications technology (ICT) systems (e.g., computers, servers, peripheral devices, etc.) under Component 2: Digital transformation of HRM in the civil service. Automated systems will be introduced by the project to replace manual systems in personnel and payroll management and improve the efficiency of the CSC Human Resources Management Information System (HRMIS). The potential environmental impact that can be anticipated from this activity may come from the improper post-use/end-of-life disposal of waste electronic equipment (e-waste) which could cause environmental risk if not addressed. However, the country has mandatory green public procurement and waste management policies that would address the issue. Policies and regulations on green public procurement of commonly-used supplies and equipment, and e-waste management are in place and embedded in government agency guidelines and procedures that will mitigate the potential risk from Component 2. Overall, the project has no direct contact with the physical environment and environmental impacts and risks are manageable. Therefore, the risk classification is assessed to be low. A.2 Social Risk Rating Low [Summary of key factors contributing to risk rating, in accordance with the ES Directive and the Technical Note on Screening and Risk Classification under the ESF – Max. character limit 2,000] Given the nature of the interventions and activities, there will be no land acquisition and involuntary resettlement, no threats on the health and safety of communities including vulnerable groups and Indigenous Peoples, and no risks on cultural heritage. As the Project only involves the bureaucracy and just a few offices at this time, stakeholder risks are limited and confined. However, risks related to confidentiality of information need to be seriously looked into and mitigated through clear procedures related to access to information to be outlined in the Stakeholder Engagement Plan. With no civil works and project activities limited to capacity-building and installation of equipment/software, May 27, 2024 Page 4 of 8 The World Bank Philippines Civil Service Modernization Project (P180649) labor requirements are limited. This coupled with the Labor Code of Philippines being aligned with ESS 2, risks related to labor and working conditions are low. Should a single firm be contracted to supply equipment/software, primary suppliers would need to be involved. This will be determined at appraisal. The ESCP will include provisions related to ESS 2 and no Labor Management Procedures will be prepared. [Summary of key factors contributing to risk rating. This attribute is only for the internal version of the download document and not a part of the disclosable version – Max. character limit 2,000] 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 [Optional Explanation - Max. character limit 1,000] The Project is national level in scope and will support activities to improve the functioning of the civil service. Activities are mainly capacity building to strengthen human resources (HR) management, introduce digital transformation, and support change management. The Project will introduce technological infrastructure to automate HR/personnel and payroll data. While, in general, this activity will not pose significant environmental impacts, the post-use or end-of-life disposal of waste electronic equipment (e-waste) could be of environmental For Official Use Only concern, even if not expected in the project duration, if not properly addressed. An Environmental Codes of Practice (ECOP) covering ICT procurement, property management, and the proper disposal of e-waste should be prepared and integrated in the Project Operations Manual (POM) and relevant procurement documents. No further environmental risk assessment is required after the initial screening unless there's a material change in project design. ESS10 - Stakeholder Engagement and Information Disclosure Relevant [Optional Explanation - Max. character limit 1,000] Aside from the CSC, the main stakeholders are the 3 partner agencies (DBM, DICT, and NEDA) as well as all the HR personnel who will be involved in capacity-building and all civil servants who will be affected by the improved systems and those who will be asked to join relevant surveys or similar activities. There will be no communities involved. Indigeneity, gender, SOGI are not expected to come into play as vulnerability is in terms of data privacy which everyone will be subjected to. As such, there is a need to secure confidentiality of all information that would be migrated from manual forms/systems to technologically advanced platforms. A Stakeholder Engagement Plan will be prepared at appraisal to address all the requirements under ESS 10 including establishing a functional GRM and most importantly, to detail how confidentiality will be ensured during and after the process of migration , i.e., who will have access to what, and what will be done if confidentiality is breached. ESS2 - Labor and Working Conditions Relevant [Optional Explanation - Max. character limit 1,000] May 27, 2024 Page 5 of 8 The World Bank Philippines Civil Service Modernization Project (P180649) Project workers will include all civil servants who will directly work to implement the Project and consultants who will be hired to for trainings and other capacity-building activities. During appraisal, the involvement of primary suppliers will be determined as contracting for equipment could only come from one company including installation, testing, etc. Given the nature of project activities, labor requirements will be minimal and child labor and forced labor are unlikely to be encountered. As the Labor Code of the Philippines is aligned with ESS2 and international standards for decent work, abiding by the law would be sufficient to manage the minimal risks related to labor and working conditions under the Project. As such, in lieu of a Labor Management Procedures and as provided for in ESS 2 footnote 9, the ESCP at appraisal will inlcude ESS 2 requirements such as establishing a GRM specific for workers, and if applicable contain provisions related to primary suppliers. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant [Optional Explanation - Max. character limit 1,000] There is potential environmental impact from the procurement, use, and end-of-life disposal of ICT equipment to be supported by the Project. This is assessed to be minimal and manageable. The government has policies and regulations in place on green public procurement (e.g., Green Public Procurement Board resolutions) and on the disposal of any government assets (including equipment) which are unserviceable (e.g., Commission on Audit Circular No. 89-296). The ECOP to be prepared, and integrated in the POM as well as in the relevant standard procurement documents, will elaborate the guidance on the management of disposal at end-of-life of the ICT equipment. For Official Use Only ESS4 - Community Health and Safety Not Currently Relevant [Optional Explanation - Max. character limit 1,000] Project activities are confined where equipment will be installed and trainings/capacity building conducted. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Not Currently Relevant [Optional Explanation - Max. character limit 1,000] Land will not be required under the Project. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Not Currently Relevant Resources [Optional Explanation - Max. character limit 1,000] This standard is currently not relevant for the proposed project activities and, hence, not considered. The Project does not include activities that involve any civil or rehabilitation works that would affect biodiversity or natural resources. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities [Optional Explanation - Max. character limit 1,000] May 27, 2024 Page 6 of 8 The World Bank Philippines Civil Service Modernization Project (P180649) There will be no Indigneous Peoples as defined in the ESF that will be involved in the Project. ESS8 - Cultural Heritage Not Currently Relevant [Optional Explanation - Max. character limit 1,000] The Project is not expected to involve cultural heritage including chance finds. ESS9 - Financial Intermediaries Not Currently Relevant [Optional Explanation - Max. character limit 1,000] The Project will not involve financial intermediaries B.2 Legal Operational Policies that Apply OP 7.50 Operations on International Waterways No OP 7.60 Operations in Disputed Areas No For Official Use Only B.3 Other Salient Features Use of Borrower Framework No [Optional explanation – Max. character limit 1,000] The Project will use the ESF. Use of Common Approach No [Optional Explanation including list of possible financing partners – Max. character limit 1,000] There will be no co-financiers. B.4 Summary of Assessment of Environmental and Social Risks and Impacts [Description provided will not be disclosed but will flow as a one time flow to the Concept Stage PID – Max. character limit 5,000] The environmental risks and impacts of the Project is assessed to be low. The Project will not finance activities that will involve civil works nor prepare an infrastructure investment plan that will generate any potential environmental impacts. It will not involve project activities that will expose project beneficiaries or stakeholders to be exposed to potential environmental risks and impacts. Post-use or end-of-life disposal of waste electronic equipment to be procured and installed as part of Component 2 activities could be of environmental concern. Although not expected during the project period, the potential impact from the improper disposal of e-waste will be mitigated by preparing an Environmental May 27, 2024 Page 7 of 8 The World Bank Philippines Civil Service Modernization Project (P180649) Codes of Practice (ECOP) and integrating it into the Project Operations Manual (POM) and the standard procurement documents of relevant project activities. 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? [Description of expectations in terms of documents to be prepared to assess and manage the project’s environmental and social risks and by when (i.e., prior to Effectiveness, or during implementation), highlighted features of ESA documents, other project documents where environmental and social measures are to be included, and the related due diligence process planned to be carried out by the World Bank, including sources of information for the due diligence - Max. character limit 3,000] - Environmental Codes of Practice (ECOP) on Electronic Wastes (E-wastes) by Appraisal - ECOP on E-Waste to be integrated into the Project Operations Manual (POM) and the standard procurement documents of relevant project activities before Implementation - Stakeholder Engagement Plan - ESCP containing provisions related to ESS 2 and ESS 3 among others III. CONTACT POINT For Official Use Only Contact Point Task Team Leader: Davit Melikyan Title: Senior Public Sector Specialist Email: dmelikyan@worldbank.org IV. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects V. APPROVAL Task Team Leader(s): Davit Melikyan ADM Environmental Specialist: Agnes Chung Balota ADM Social Specialist: Marivi Amor Jucotan Ladia May 27, 2024 Page 8 of 8