The World Bank Philippines Civil Service Modernization Project (P180649) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 10/15/2024 | Report No: ESRSA03751 Oct 25, 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 29-Oct-2024 06-Nov-2024 Philippines Estimated Decision Total Project Cost Review Date Public Disclosure 04-Sep-2024 69,555,000.00 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 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 Individual and Agency Capabilities for Human Resource Management to lead and coordinate the reform process; (b) Systems and Technologies for Effective Human Resource Management including the introduction of technological infrastructure to automate HR/personnel and payroll data; and (c) Project Management and Change Management to support HRM transformation including the creation of a Project Management Unit and the Oct 25, 2024 Page 2 of 8 The World Bank Philippines Civil Service Modernization Project (P180649) 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 The project has three components, namely: (i) Strengthening individual and agency capabilities for HRM; (ii) Systems and technologies for effective HRM; and (iii) Project management and change management. All components are primarily investments in soft infrastructure and capacity building within the Civil Service Commission (CSC) and National Government Agencies (NGAs). Component 1 seeks to develop the capacity of the CSC to lead and coordinate the civil service reform process. It will assist the CSC to strengthen its internal HRM policies and practices to achieve PRIME-HRM Level III Certification, including support for a possible internal organizational restructuring. It will also help the CSC develop a business continuity plan to prepare against any future crisis situation. In addition, Component 1 aims to strengthen strategic HRM in selected NGAs. Under Component 1, the country’s HRM framework, the Program to Institutionalize Meritocracy and Excellence in Human Resource Management (PRIME-HRM), will be updated to strengthen and ensure consistency with contemporary, global HRM practices. An accompanying e-Portal will also be developed to streamline agency self- assessment and CSC validation processes. At the same time, Component 1 will build capacity in Human Resource Management Offices (HRMOs) by developing an HR Certification System and providing support for capacity building, Public Disclosure learning, and knowledge management, through: (i) the development and delivery of e-learning courses; (ii) support for participation in relevant learning opportunities (such as study tours, scholarships, twinning arrangements, conferences, or short-term secondments); and (iii) support for research, publications, and training and certification of knowledge management professionals, among others. Meanwhile, Component 2 focuses on developing and establishing systems for HRM and workforce planning. This includes support for: (i) an integrated, government-wide, web-based Human Resources and Payroll Management Information System (HRPMIS) that will improve efficiency and enable evidence-based HR policymaking; (ii) digitization of the CSC’s and NGAs’ HR records which are currently held in paper files, through the implementation of HRPMIS and an associated review and update of the CSC’s records retention and disposal policy; and (iii) the hardware and network connectivity requirements for the HRMPIS. The HRMPIS will be hosted in the Government’s existing central cloud and data center infrastructure, which can be upgraded with project financing to meet the system requirements as needed. The HRMPIS should have a network architecture and design that can withstand and quickly recover from various disruptions, faults, or attacks. Component 2 will also support bolster the cybersecurity and data privacy posture of the CSC with the capability to withstand, respond to, and recover from cybersecurity threats and incidents while still maintaining its core functions. Finally, Component 3 provides support for project management and change management, including the establishment of a Project Management Unit (PMU) within the CSC. The Project will primarily be contained within the offices of the CSC and its partner implementing NGAs. All of the agencies have central offices within Metro Manila. The CSC has 16 regional offices across the country, none located in Oct 25, 2024 Page 3 of 8 The World Bank Philippines Civil Service Modernization Project (P180649) conflict-affected areas. The NGAs 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 NGAs – 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 This is the first engagement of the CSC with the World Bank on the ESF. There is also no experience with 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 following international and national laws. 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 the disposal of electronic wastes. These are good foundations for understanding ESS 2, ESS 3, and ESS 10 which are the main environment and social standards relevant to the Project. During project preparation, the CSC has designated a team of directors as environmental and social focal points who worked on the ESCP, SEP, and ECOPs. Public Disclosure II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Low A.1 Environmental Risk Rating Low 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 HRM capability of the CSC and NGAs, and establishing systems for HRM and workforce planning. 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 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, as well as the introduction of the HRMPIS, which will replace manual, paper-based systems in personnel and payroll management. 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. Oct 25, 2024 Page 4 of 8 The World Bank Philippines Civil Service Modernization Project (P180649) Low A.2 Social Risk Rating 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, 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, 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. As such, an LMP was no longer required. Requirements related to ESS2 including having a GRM for workers has been made part of the ESCP. Use of primary suppliers remains unclear but the provisions of the ESF on such will be applied if triggered during project implementation. B. Environment and Social Standards (ESS) that Apply to the Activities Being Considered B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant The Project is national level in scope and will support activities to improve the functioning of the civil service. Activities are primarily focused on improving the HRM capability of the CSC and NGAs, establishing systems for HRM and workforce planning, including the needed ICT equipment, and supporting project and change management. The Public Disclosure 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 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 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 of the 38 early adopter agencies 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 has been prepared that address the requirements under ESS 10 including having a functional GRM and most importantly, detailing 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 Oct 25, 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 for trainings and other capacity-building activities. 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 includes ESS 2 requirements such as establishing a GRM for workers. Use of primary suppliers remains unclear but the provisions of the ESF on such will be applied if triggered during project implementation. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant There is a 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) that are unserviceable (e.g., Commission on Audit Circular No. 89-296). An Environmental Code of Practice (ECOP) has been prepared to provide the overall framework for the efficient management and disposal of all electronic and electrical wastes, packaging wastes and other hazardous materials (E-wastes) at end-of-life of equipment as part of good environmental practice and in compliance with existing relevant environmental laws and regulations. The ECOP is fundamentally anchored on the commitment of the Civil Service Commission to strictly adhere to the highest level of transparency, best practices, and sustainability in waste management in the country. It will be integrated into the Project Operations Manual, as well as in the relevant standard procurement documents, and will elaborate the guidance on the management of disposal at end- Public Disclosure of-life of the ICT equipment. ESS4 - Community Health and Safety Not Currently Relevant 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 Land will not be required under the Project. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Not Currently Relevant Resources 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 There will be no Indigneous Peoples as defined in the ESF that will be involved in the Project. ESS8 - Cultural Heritage Not Currently Relevant Oct 25, 2024 Page 6 of 8 The World Bank Philippines Civil Service Modernization Project (P180649) The Project is not expected to involve cultural heritage including chance finds. ESS9 - Financial Intermediaries Not Currently Relevant 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 B.3 Other Salient Features Use of Borrower Framework In Part The implementation of the ECOP on e-waste that has been prepared for the project will use the CSC policies and requirements on the supply and property management process, focusing on the overall aspects of procurement, delivery, inspection and acceptance of goods and items, custodianship, and disposal of unserviceable property and equipment of the Commission. It will also rely on the monitoring and enforcement of relevant authorities such as the Commission on Audit (COA) and the Department of Environment and Natural Resources (DENR) as outlined in the ECOP and to be elaborated in the POM. Public Disclosure Use of Common Approach No There will be no co-financiers. 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 implementation? - Environmental Codes of Practice (ECOP) on Electrical and Electronic Wastes (E-wastes) to be integrated into the Project Operations Manual (POM) and the standard procurement documents of relevant project activities before implementation - Stakeholder Engagement Plan adopted at effectiveness - ESCP containing provisions related to ESS 2 and ESS 3 among others III. CONTACT POINT World Bank Task Team Leader: Davit Melikyan Title: Senior Public Sector Specialist Email: dmelikyan@worldbank.org Oct 25, 2024 Page 7 of 8 The World Bank Philippines Civil Service Modernization Project (P180649) 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 Public Disclosure Oct 25, 2024 Page 8 of 8