The World Bank Socio-economic Inclusion Of Refugees & Host Communities In Rwanda Project Phase Ii (P181483) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 09/11/2024 | Report No: ESRSC04462 Sep 27, 2024 Page 1 of 9 The World Bank Socio-economic Inclusion Of Refugees & Host Communities In Rwanda Project Phase Ii (P181483) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P181483 Investment Project Financing (IPF) Jya Mbere Phase II 2025 Operation Name Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project Phase II Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Rwanda Rwanda EASTERN AND Social Sustainability and SOUTHERN AFRICA Inclusion Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date Ministry of Finance & Development Bank of Rwanda, 15-Oct-2024 27-Nov-2024 Economic Planning Ministry in Charge of Emergency Management, Rwanda Transport Development Agency Public Disclosure Estimated Concept Total Project Cost Review Date 26-Jun-2024 66,670,000.00 Proposed Development Objective To improve access to basic services and economic opportunities to promote self-reliance for refugees and host communities in the target areas in Rwanda. 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 project will support access to basic services and economic opportunity for refugees and the communities hosting them in Rwanda. Activities will be organized around three components. Component 1: Access to Services and Socio- economic Investments. This will support infrastructure construction, rehabilitation and upgrading to help address the impact of the refugee presence on basic services (education - primary, secondary and TVET; health; and water and sanitation). Infrastructure investments will also support the government's policy to integrate refugees into national Sep 27, 2024 Page 2 of 9 The World Bank Socio-economic Inclusion Of Refugees & Host Communities In Rwanda Project Phase Ii (P181483) service delivery systems and move away from expensive, parallel camp-based systems. This component will also support economic infrastructure to promote economic activity, trade and access to markets, including roads and market facilities. This component will be implemented in the five refugee hosting districts (RHDs) in Rwanda - Gatsibo, Gisagara, Karongi, Kirehe and Nyamagabe. Component 2: Economic Opportunity. Under this component the project will support host community and refugee businesses with a combination of capacity-building on financial literacy, business planning and business management and access to finance through participating financial institutions. Component assistance will be available to host communities in the five RHDs and to refugees nationwide. In addition, in two pilot districts, the project will support grassroots livelihood to help start-ups who are not bankable to build savings and generate income. Successful beneficiaries of the grassroots pilot will be linked to financial institutions for access to finance. Component 3: Project Management, M&E, Capacity-Building, Research and Learning. This component will support the Single Project Implementation Units (SPIUs) at the three implementing agencies - the Ministry in Charge of Emergency Management, the Development Bank of Rwanda and the Rwanda Transport Development Agency - and the participating districts to manage the project. The component will also include an allocation for two full census rounds of the tailored Rwanda Refugee Self-Reliance Index (RRSRI). The project is expected to run from 2024 to 2029. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings The proposed Phase II of the "Jya Mbere" project will focus on enhancing self-reliance among refugees and host communities in Rwanda. The project will support infrastructure development and job creation, with investments in economic and social infrastructure while discontinuing environmental management activities from Phase I. Phase II will continue to support Public Disclosure the five refugee-hosting districts and expand the economic opportunity component nationwide, encouraging camp- based refugees to move to urban centers. The project aims to integrate refugees into national systems and prioritize climate-resilient standards. Infrastructure activities such as road construction and rehabilitation, construction of health facilities and upgrade of markets are expected to carried out outside the camps. Institutional beneficiaries will include the Ministry in Charge of Emergency Management (MINEMA), the Development Bank of Rwanda (BRD), the Rwanda Transport Development Agency (RTDA), and refugee-hosting districts. Beneficiaries will include a significant proportion of women (50%) and youth (25%), focusing on economic opportunities and grassroots livelihood support. The project is also expected to benefit refugee and host community businesses through access to finance and capacity- building, with a focus on micro, small, and medium enterprises (MSMEs), cooperatives, and joint ventures between refugees and Rwandan nationals. Additionally, the rural livelihood and self-reliance pilot will support non-bankable community members through participatory village planning and livelihood grants. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts The client has prepared the Environmental and Social Management Framework (ESMF), Stakeholder Engagement Plan (SEP), and Resettlement Policy Framework (RPF) under Phase I of the project, complying with the triggered safeguard policiesThese documents were disclosed locally and on the Bank’s website on March 25, 2019. The Single Project Implementation Units (SPIUs) at MINEMA, BRD, and RTDA, appointed during Phase I, have experienced safeguard specialists familiar with World Bank policies and standards. The current environment and social risk rating is substantial and the perfomance rating for phase 1 is more or less satisfactory.However, there is need for improvement Sep 27, 2024 Page 3 of 9 The World Bank Socio-economic Inclusion Of Refugees & Host Communities In Rwanda Project Phase Ii (P181483) in timely and content reporting which should be considered for phase 2. The client is currently conducting an E&S completion audit, and lessons learnt from the report will be considered for phase 2 preparation and implementation. The project has established a well functioning GRM system and currently all received complaints have been handled and resolved. The same mechanism will be adopted for Phase 2. The project will transition from safeguard policies in Phase I to the Environmental and Social Framework (ESF) in Phase II . Staff will be trained on the ESF during preparation to ensure compliance from the start of implementation. The safeguards team will continue due diligence on all subprojects and activities , working with district officials and overseeing the implementation of the ESMF, SEP, RPF, ESMPs, and RAPs. The World Bank E&S team will provide ongoing training and mentoring to SPIUs personnel and project implementation partners throughout the project implementation. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial A.1 Environmental Risk Rating Substantial The proposed environmental risk rating for Phase II of the project is Substantial, as no large-scale or irreversible impacts are anticipated due to the scope and nature of the project components. Risks and impacts mainly relate to civil works activities, including infrastructure upgrading and rehabilitation, such as education and health facilities, water systems, TVET centers, road upgrades to the Mahama refugee camp, and market infrastructure. Also, water resource management, pollution (air, noise, water), solid and hazardous waste management, habitat disruption, and occupational and community health and safety risks to site workers and communities, associated with construction Public Disclosure activities are anticipated. The environmental risks and impacts are predictable, mainly temporary, site-specific, and reversible unlikely to cause adverse effects, which can be mitigated through appropriate and readily available mitigation measures. Substantial A.2 Social Risk Rating The proposed social risk rating for Phase II of the project is Substantial. The project scope primarily includes the construction and rehabilitation of economic infrastructures such as TVETs, markets, and roads, as well as social infrastructures like health facilities. The proposed projectactivities will involve land acquisition and/or physical or economic relocation whichpotentially affect several Project Affected Persons (PAPs), including vulnerable groups such as children, women, and persons with disabilities. Women and children are particularly vulnerable to Sexual Exploitation and Abuse/Sexual Harassment (SEA/SH) from contractors' workers, while the safety and mobility of persons with disabilities may be compromised. Both groups are likely to face discrimination or unequal treatment during employment. Project-related risks include (i) inadequate assessment and delayed compensation processes, (ii) insufficient stakeholder engagement, (iii) lack of access to functioning Grievance Redress Mechanisms for PAPs, workers, and other stakeholders, (iv) social exclusion, and potential Gender-Based Violence (GBV)/Sexual Exploitation and Abuse (SEA) of minors. To mitigate these risks, the project will prepare and implement a RAP, ESMP, ESIA, GBV/SEA plan, SEP, and LMP to meet relevant ESSs. B. Relevance of Standards and Policies at Concept Stage B.1 Relevance of Environmental and Social Standards Sep 27, 2024 Page 4 of 9 The World Bank Socio-economic Inclusion Of Refugees & Host Communities In Rwanda Project Phase Ii (P181483) ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant The Phase II of the project will involve construction, upgrading, and rehabilitation of basic service infrastructure such as education, health facilities, water systems, TVET centers, road upgrading to the Mahama refugee camp, and market infrastructure, along with support for MSMEs and cooperatives, which present potential environmental, social, and OHS risks and impacts. These may include 1) land disturbance; 2) habitat disruption; 3) water resource management issues; 4) air, noise, and water pollution; 5) poor management of solid and hazardous waste (construction, medical, e-waste and agricultural waste); 6) OHS risks from construction and rehabilitation activities; 7) Increased resource consumption and 8) inadequate technical capacity of the PIU to manage E&S risks in line with the ESF. To address these risks and impacts, an ESMS, ESMF will be prepared in line with the World Bank's ESF. These commitments will be incorporated into the ESCP. ESS10 - Stakeholder Engagement and Information Disclosure Relevant An inclusive stakeholder engagement process will be critical for the successful implementation of the Phase II of the project. For Component 1, which focuses on infrastructure development, consultations with key government departments, local authorities, and community leaders will be necessary to align priorities and ensure community needs are met. For Components 2, the PIU will conduct timely dissemination of information and solicit feedback from refugees, host communities, MSMEs, cooperatives, and other interested parties. A Stakeholder Engagement Plan (SEP) consistent with ESS10 will be prepared, documenting the process of consultation and identifying relevant stakeholders to be engaged throughout the project cycle. The SEP will outline the characteristics and interests of the relevant stakeholder groups, the timing, and methods of engagement throughout the life of the project. The SEP will Public Disclosure be disclosed prior to project appraisal. ESS2 - Labor and Working Conditions Relevant This standard is relevant as the project is planning to employ number of skilled and unskilled labor during the construction works and working conditions are to be monitored to ensure there are no risks and impacts. The proposed project activities will involve direct workers, contracted workers, and primary supply workers mainly for the construction works on the rehabilitation of roads and other facilities. A number of workers during the construction of the infrastructures is expected to be employed by contractors and sub-contractors and may involve day laborers. The ESMF and Site-specific ESMP, will assess major labor risks including risks of child labor and forced labor, labor influx and GBV, in particular SEA/SH, and Occupational Health and Safety (OHS) risks. The project will commit (through the ESCP) to develop the Labor Management Procedures (LMP) submitted and cleared before project appraisal, covering all types of workers and include process to manage labor influx issues. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant The Phase II of the project activities are anticipated to generate several risks and impacts related to resource efficiency and pollution prevention and management. These include dust emissions from road upgrading/rehabilitation, excavation activities, and borrow pit operations, as well as increased pressure on wood fuel, water and land resources. Additionally, the project is expected to generate solid and hazardous waste construction, medical, e-waste and agricultural waste. To address these concerns, an Environmental and Social Management Framework (ESMF) and the Environment and Social Management System (ESMS) will be prepared in line to the World Bank's Environment and Social Framework (ESF) for Phase II, incorporating mitigation measures aligned with relevant Sep 27, 2024 Page 5 of 9 The World Bank Socio-economic Inclusion Of Refugees & Host Communities In Rwanda Project Phase Ii (P181483) World Bank Environmental, Health, and Safety (EHS) guidelines and GIIPs. These measures will be detailed in site specific Environmental and Social Management Plans (ESMPs) and other appropriate management plans. ESS4 - Community Health and Safety Relevant This standard is relevant to activities under component 1 which focuses on infrastructure development. Exposure to dust, noise, hazardous construction wastes, and traffic-related incidents associated with the proposed Phase II of the project activities are anticipated to pose risks to community health and safety. These risks will be thoroughly assessed during the preparation of the ESMF based on the lessons learnt from phase 1, appropriate mitigation measures incorporated into the site specific Environmental and Social Management Plans (ESMPs). For component 2, the ESMS of the institution will be cater for activities that pose risks on community health and safety. The client will be required to comply with the community health and safety requirements as stipulated in WBG EHS guidelines and the incident reporting and management procedures should any accidents/incidents occur. Furthermore, to address the risk of GBV/SEA/SH and ensure the safety of refugee and host communities. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant Sub-component 1(a): involving construction, upgrading or rehabilitation of basic education and health facilities and water systems, and Sub-component 1(b): supporting construction, upgrading and/or rehabilitation of markets] infrastructure to promote economic activity, connect remote refugee and host populations to markets and to strengthen the access of traders and entrepreneurs to the refugee and host populations. These activities are likely to cause Land Acquisition, Restrictions on Land Use and Involuntary Resettlement. To mitigate the anticipated social Public Disclosure impacts associated to land acquisition, involuntary resettlement etc in addition to the site specific RAP, a Resettlement Policy Framework (RPF) will also be developed prior to appraisal. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources ESS6 is relevant to the Phase II of the project, although with minor risks and impacts on biodiversity and natural resources, as the project activities are planned for already existing sites and not located in natural or critical habitats. Expected risks and impacts on biodiversity include land and habitat degradation when primary suppliers obtain raw materials (such as sand and gravel) extracted legally or illegally from environmentally sensitive areas, as well as vegetation clearance for the construction of contractors' camps/laydown areas and road construction. To mitigate these risks, an exclusion criterion will be established and included in the Environmental and Social Management Plans (ESMP) to avoid adverse impacts on biodiversity. The project will ensure proper siting, screening of subprojects, and preparation of the site specific ESMP that should inform project design. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities There are no African Historically Underserved Traditional Local Communities as defined by ESS7 in the project area. ESS8 - Cultural Heritage Relevant Sep 27, 2024 Page 6 of 9 The World Bank Socio-economic Inclusion Of Refugees & Host Communities In Rwanda Project Phase Ii (P181483) The ESS8 is relevant because the project may negatively affect tangible and non-tangible cultural heritage during rehabilitation and construction activities which involve excavations and movement of earth material. Through the environmental and social impact assessment, project site specific risks and impacts on cultural heritage shall be identified. If during E&S assessment cultural heritage is identified, mitigation measures to avoid these impacts needs to be identified and implemented in line with mitigation hierarchy and where appropriate, a cultural Heritage Management Plan will be needed if significant impacts are expected. However, the ESMF prepared under phase 1 of the project demonstrates that it is unlikely that Physical Cultural Resources (PCR) will be affected. The ESMF will have an annex for chance find procedure. ESS9 - Financial Intermediaries Relevant The project includes Development Bank of Rwanda (BRD) as an implementing agency that will implement activities under component 2 in Economic opportunities. Phase II will continue to support refugee and host community businesses through a combination of capacity-building and access to finance through PFIs, while adding a grassroots livelihood pilot. BRD has an existing Environmental and Social Management System (ESMS) which was assessed during the parent project Mid term review. BRD will update its ESMS to align with the ESF requirements in compliance with the World Bank Environmental and Social Framework (ESF), ESS9, ESS1, ESS5, ESS8 and other relevant ESSs. This is expected before project effectiveness and included in the ESCP. B.2 Legal Operational Policies that Apply Public Disclosure 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 Use of Common Approach No 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? Actions to be completed prior to Bank Board Approval: Prepare and disclosure of ESMF, RPF, LMP,SEP and the ESCP to align with the World Bank's Environment and Social Framework (ESF) Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): Sep 27, 2024 Page 7 of 9 The World Bank Socio-economic Inclusion Of Refugees & Host Communities In Rwanda Project Phase Ii (P181483) - Preparation and disclosure of ESMF for Phase II of the project to align with the World Bank's Environment and Social Framework (ESF). The ESMF will include solid and hazardous waste management Plan, traffic management Plan; Incident reporting procedures for the project; and Capacity building of implementing agency in ESF and ESSs; - Preparation, consultation and disclosure of ESIA/ ESMP for subprojects - Preparation and disclosure of Labor Management Procedures (LMP) - Preparation and disclosure of the Resettlement Policy Framework (RPF) - Preparation and disclosure of the Stakeholder Engagement Plan ( SEP) - Preparation and disclosure of solid and hazardous waste management Plan - Development and implementation of a proportional Environment, Health and Safety (EHS) plan in line with WBG EHS Guidelines, emergency preparedness procedures: this can also be an annex to the ESMF. Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): The following instruments and actions will need to be agreed and included in the ESCP, so the government of Rwanda will be responsible for: 1) Inclusion in the Project Implementation Manual (PIM) the requirements to apply the ESIA, ESMF,ESMS, SEP, LMP, RPF, and all other ESF plans environmental and social risk management instruments prepared. 2) Requirements to work with the MINEMA on the assignment of dedicated environment and social staff a condition of effectiveness. 3) The preparation and incorporation of GBV/SEA/SH management requirements, environmental, occupational health, social safeguards and safety clauses in bid documents and contracts for contractors to ensure application of all 10 ESS, including the SEP. 4) Development and implementation of Site-Specific Plans including Environmental and Social Impact Assessment Public Disclosure reports and accompanying ESMPs as required under the ESMF, Resettlement Plans as required under the RPF. 5) Stakeholder Engagement Plans, Grievance Redress Mechanism s and Emergency Response Plans as required per each ESS. 6) ESF and risk management capacity building plan for the MINEMA, BRD and Other stakeholders . 7) Monitoring and reporting requirements on environmental and social risk management, grievances and accidents and incidences as required under the ESS and relevant national legislations. 8) Capacity building measures for project staff. III. CONTACT POINT World Bank Task Team Leader: Matthew Stephens Title: Lead Social Development Specialist Email: mstephens@worldbank.org TTL Contact: Mariko Yamamoto Job Title: Social Development Specialist Email: myamamoto1@worldbank.org Sep 27, 2024 Page 8 of 9 The World Bank Socio-economic Inclusion Of Refugees & Host Communities In Rwanda Project Phase Ii (P181483) TTL Contact: Ivan Emmanuel Mwondha Job Title: Senior Transport Specialist Email: imwondha@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): Matthew Stephens, Mariko Yamamoto, Ivan Emmanuel Mwondha ADM Environmental Specialist: Yacob Wondimkun Endaylalu ADM Social Specialist: Chantal Umulinga K Public Disclosure Sep 27, 2024 Page 9 of 9