The World Bank Colombia Sustainable Development Of Family Farming (P180676) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 10/24/2023 | Report No: ESRSC03878 Feb 07, 2025 Page 1 of 10 The World Bank Colombia Sustainable Development Of Family Farming (P180676) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P180676 Investment Project Financing (IPF) SDAFF 2026 Operation Name Colombia Sustainable Development of Family Farming Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Colombia Colombia LATIN AMERICA AND Agriculture and Food CARIBBEAN Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date THE REPUBLIC OF Ministerio de Agricultura y Desarrollo 15-Jan-2025 15-Jul-2025 COLOMBIA Rural Estimated Concept Total Project Cost Review Date Public Disclosure 19-Oct-2023 268,800,000.00 Proposed Development Objective The Program Development Objectives (PrDO) is to enhance agriculture income and resilience to climate change of family farmers in selected rural areas. The Project Development Objective (PDO) is to increase market access and strengthen resilience to climate risks of family farmers in selected regions of Colombia. In case of an Eligible Crisis or Emergency, respond promptly and effectively to it. 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 Phase 1 of the project focuses on the Caribbean Region of Colombia, Santander, and Antioquia (CRCS&A), covering the departments of La Guajira, Cesar, Magdalena, Bolivar, Sucre, Atlántico, Córdoba, Santander, and Antioquia. This region is home to 18 million people, including 5.8 million in rural areas, and contains 1.2 million family farms, accounting for 52% of Colombia’s total. The project prioritizes five geographic clusters identified for agrarian reform while extending benefits to other areas, reaching 205,000 beneficiaries, including 186,000 direct beneficiaries and 19,300 indirect Feb 07, 2025 Page 2 of 10 The World Bank Colombia Sustainable Development Of Family Farming (P180676) beneficiaries, representing approximately 52,000 rural households. Beneficiaries include family farmers and their producer organizations (POs), such as cooperatives and community associations engaged in agriculture, livestock, forestry, and aquaculture, with representation from indigenous peoples, Afro-descendants, and Raizal communities. The project is estimated to cost USD 268.8 million, funded by USD 250 million from IBRD, USD 8 million from the Food System 2030 grant, USD 1.7 million from the Korean-World Bank Partnership Facility, and USD 9.1 million in co-financing from POs. The project includes six components. Component 1: Accelerating the Delivery of Agricultural Innovations includes subcomponents on scaling agricultural innovation for family farmers, enhancing the transfer of agricultural innovations, and institutional strengthening for agricultural innovation, led by AGROSAVIA. Component 2: Strengthening Agricultural Extension Services focuses on improving enabling conditions (including registries, the National Agricultural Extension Fund, and monitoring and evaluation) and delivering extension services to family farmers, led by ADR with support from MADR. Component 3: Agroindustry Development and Access to Markets includes subcomponents on pre- investment in sustainable agriculture businesses, implementing business plans, and strengthening market access, led by ADR. Component 4: Policy Analysis and Repurposing Support focuses on assessing, testing, and scaling innovative policies and coordinating the program’s learning agenda, led by MADR. Component 5: Contingency Emergency Response Component (CERC) is designed to address crises, disasters, and health emergencies, led by MADR and ADR. Component 6: Project Management and Coordination includes administrative activities, audits, and evaluations, managed through dedicated units in MADR, ADR, and AGROSAVIA. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings The project will finance TA (services, training, capacity building) and small/medium scale works to improve existing Public Disclosure infrastructure. Positive environmental and social impacts are expected. The locations have not been defined, interventions are not expected to take place on environmental protected areas or areas of high biodiversity value or result in natural loss. E&S selection criteria will be considered, as an exclusion list in the POM, to avoid intervention in: (a) protected areas national and local environmental protected areas; (b) flood and subsidence-prone areas; (c) areas of unmitigable risk; (d) areas that are not compatible with the permitted land use; (e) areas where conflict or land disputes might be considered; (f) to prioritize interventions in areas that minimize deforestation; (g) sites which involve land acquisition or restrictions resulting in physical and/or economic displacement, among others. The Project’s scope is nationwide and will develop farming in rural areas. Beneficiaries are family farmers and producer organizations, with special focus on women, youth and indigenous peoples (IP) – ethnic groups as known in Colombia –. Attention must be given to ensure accessibility to all stakeholders, especially IPs, women and youth, regarding opportunities for beneficiaries to access financial institutions to support their investment activities (component 3), as well as transfer of agricultural innovations and social appropriation of knowledge (subcomp 2.3). Physical interventions are limited to improving agriculture research stations (physical infrastructure and laboratories) (subcomp. 2.2); the implementation of experience showcases, pilot farms, demonstration plots (subcomp. 2.3); and to the necessary infrastructure for the operation of regional agrologistics platforms and the development of family farmers fairs and rural markets (subcomp. 3.3). There are low potential Occupational Health and Safety risks related to small/medium scale work. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts The Ministry of Agriculture and Rural Development (MARD) will be responsible for project implementation. It has broad experience with Bank-financed projects and has adequate technical capacity developing projects under the Bank’s E&S Feb 07, 2025 Page 3 of 10 The World Bank Colombia Sustainable Development Of Family Farming (P180676) safeguard policies. It is satisfactorily implementing the CO Sustainable Low Carbon Development in Orinoquia Region Project (P160680) and currently preparing the BioCarbon Emission Reductions Program Orinoquia (P178872) under the ESF. An institutional assessment of MARD, AGROSAVIA and Rural Development Agency (ADR) will be undertaken to define institutional arrangements, the Project Steering Committee (PSC) for the MPA, the Project Implementation Unit (PIU), the Operation Manual and E&S capacity gaps. Training needs will be included in the ESCP. The PIU will coordinate and monitor E&S management through its E&S team and will be responsible for compliance with national regulations, the Bank’s Environmental and Social standards (ESS), the Stakeholders Engagement Plan (SEP), Labor Management Procedures (LMP), E&S requirements integrated in the POM, E&S Management Plans (ESMP), Indigenous Peoples Planning Framework (IPPF) if necessary and all commitments set in the Environmental and Social Commitment Plan (ESCP). It will carry out these responsibilities in close coordination with relevant entities (i.e., AGROSAVIA, ADR). Arrangements between the PIU E&S team and other relevant areas within MARD will be defined during preparation in the Appraisal ESRS and ESCP. The possibility of the MARD hiring specialized external consultants to prepare the E&S instruments during preparation will be reviewed. The WB will support MARD by reviewing TORs to ensure they comply with ESF requirements and by supporting the counterpart once established. The Bank will provide guidance and support to MADR for the development of the project’s environmental and social management instruments. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Public Disclosure A.1 Environmental Risk Rating Moderate The environmental risk for Operation 1-Phase 1 is Moderate: (i) the potential risks can be temporary, predictable and/or reversible, with the possibility of avoiding or reversing them; (ii) the activities associated to management TA are not considered to generate negative environmental risks and impacts, also the environmental management will consider the downstream potential risks and impacts of the TA; and (iii) the Borrower's experience developing projects with the WB ESS implementation requirements is limited. The implementation of some agricultural pilots or on-site activities by small producers could generate some minor environmental aspects and impacts: (i) generation of dangerous waste; (ii) air emissions from machines and equipment; (iii) noise; (iv) water use; (v) alteration of soil conditions and water sources; (vi) risk of fire; (vii) loss of vegetation cover and potential impact on flora species; (viii) impact on fauna; (ix) landscape alteration; among others. Potential risks and hazards for occupational health and safety that may be associated with on-site activities may include: (i) biological risk due to exposure to animal stings or bites; (ii) exposure to hazardous chemicals and waste; (iii) exposure to climatic factors (high temperatures, rains and storms). The risk rating considers the Technical Assistance (TA) activities that support the drafting of policies, programs, plans, strategies, laws and/or regulations, capacity building and other activities that could have some potential direct or indirect/downstream E&S impacts. The locations to be supported under the Operation1-phase 1 have not yet been defined, but these interventions are not expected to take place in national environmental protected areas. The criteria that can contribute to the selection of the locations of components will consider environmental aspects. There are potential OHS risks of medium magnitude, considering that there will be some investments in small-scale infrastructure. Feb 07, 2025 Page 4 of 10 The World Bank Colombia Sustainable Development Of Family Farming (P180676) Moderate A.2 Social Risk Rating Social risk rating for Operation 1 Phase 1 is Moderate considering: (i) activities do not have high potential of harming people; (ii) risks and impacts are not likely to be significant, complex or large; (iii) potential impacts are low in magnitude, predictable and expected to be temporary and reversible, with the possibility of avoiding or reversing them, and being easily mitigated in a predictable manner; (iv) TA, including potential downstream impacts, is not expected to generate negative social risks and impacts. Overall, social impacts are considered to be positive. Activities consist mostly of TA and capacity building, with some minor infrastructure works under subcomp. 2.2 (agriculture research station improvements) and 3.3 (infrastructure necessary for the operation of regional agrologistics platforms) which will probably imply the hiring of small numbers of labor force. It is not clear at this stage the type and extent of the infrastructure required for subcomp. 3.3. Data collection on potential beneficiaries (subcomp.1.2), including through geo-localization technology, must guarantee private data is protected and used for the sole purpose of benefiting family farmers under the Project. Stakeholder engagement in rural areas is a key factor, particularly to include women, youth and indigenous peoples as special interest groups among family farmers which will benefit from the Project. Regarding IPs, the main risk will be a lack of efficient and culturally appropriate engagement that respects and integrates their agricultural customs and knowledge to ensure Project appropriation. The possibility exists of impacting their intangible cultural heritage related to traditional farming practices. Social impacts and risks will be better assessed once details are confirmed during preparation. The risk of exclusion will be assessed following the Directive on Addressing Risks and Impacts on Disadvantaged or Vulnerable Individuals or Groups. Public Disclosure 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 E&S impacts will be managed through Stakeholder Engagement Plan (SEP), Indigenous Peoples Planning Framework (IPPF) if necessary, Labor Management Procedures (LMP) and E&S requirements in the Project’s Operation Manual (POM), prepared by appraisal and included in the ESCP. E&S Management Plan (ESMP) will be prepared prior to implementation of subprojects. TA activities will be carried out based on TORs acceptable to the WB and considering downstream impacts. ESS1 p. 14-18 requirement will apply to TA activities as appropriate to the nature of risks. TORs, work plans and documents defining scope and outputs of TA activities will be drafted consistently with ESS and will be described in the POM and reflected in the ESCP. A social and gender gap assessment will be undertaken during preparation to inform the inclusion of those at risk of exclusion and develop a Gender Action Plan (GAP). The POM will include a section on CERC to cover relevant risks depending on the context. ESS10 - Stakeholder Engagement and Information Disclosure Relevant The Stakeholder Engagement Plan will include a strong communication and engagement strategy to reach out to interested parties to facilitate a common understanding of the vision, values and community needs through a neutral, nonthreatening and constructive manner. This strategy will consider the distinct and special needs of disadvantaged and vulnerable social groups (women, youth and indigenous communities). A citizen engagement indicator will be included in the results framework (Percent of beneficiaries satisfied with project interventions, disaggregated by Feb 07, 2025 Page 5 of 10 The World Bank Colombia Sustainable Development Of Family Farming (P180676) gender, youth, and indigenous communities). The project will design and implement a GM with accessible channels for receiving and managing complaints (including a website, telephone lines and physical mailing address). MARD, AGROSAVIA and ADR will design and implement an Ombudsman Office with a dedicated free phone line, website and e-mail address. The project Results Framework will include an indicator to monitor grievances. ESS2 - Labor and Working Conditions Relevant Types of workers have not been defined yet. They will probably include direct and contracted workers for TA, for works to improve agriculture research stations (subcomp. 2.2) and for implementation of experience showcases, pilot farms and demonstration plots (subcomp. 2.3). Civil servants, if involved, will remain subject to terms and conditions of their public sector employment agreement and to ESS2 provisions on Protecting the Work Force and Occupational Health and Safety (OHS). Community workers might also be involved under subcomp. 2.2, 2.3 and 3.3. The risk of child labor will be assessed during preparation. LMP will be prepared with a code of conduct for all Project workers, a GM specific to labor issues and SEA/SH prevention measures. The ESCP will include OHS management guidelines through policies, legal requirements plans and procedures, responsibilities, emergency plan, registration, investigation of accidents, training to avoid accidents/incidentes, among others. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant To manage the risk of increased use of agricultural chemicals due to increased cultivation intensity and potential impacts on activity sites. The project will promote best practices in the application of fertilizers and chemicals. Given subcomponent 1.1 there are potential risks of e-waste. Management measures for these inputs, and their associated Public Disclosure waste, must be included in the E&S requirements of the POM and ESMPs to be developed during implementation for site-specific activities, as needed. The E&S requirements of the POM and the ESMPs will specify in more detail the activities that will be implemented at the level of each site and activity. Project´s phase 1 activities are not expected to be significant sources of GHG emissions, so GHG estimates will not be required in accordance with paragraph 16 of the ESS3; also, there is a potential positive impact regarding the reduction of GHG during project implementation given the use of smart technologies. ESS4 - Community Health and Safety Relevant The project does not involve significant risks to the health and safety of the community, although the optimization and improvement of agricultural practices may generate future risks and impacts such as: (i) disturbances due to the generation of discharges, emissions, and noise; (ii) generation of diseases due to inadequate management of inputs and waste; iii) traffic accidents; among others. It is expected that these impacts will be controlled and mitigated through the adoption of the World Bank's ESS and EHSGs. The contractors with whom field activities will be carried out will provide workers with appropriate training and safety equipment. The risks associated with community health and safety, including SEA/SH, will be also evaluated during preparation of the E&S requirements included in the POM, and the measures to address them will be described and will be addressed through the aforementioned site-specific ESMPs. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Not Currently Relevant This standard is not currently relevant. According to the information available at this stage, the Project is not expected to involve any land acquisition or restrictions resulting in physical and/or economic displacement. However, Feb 07, 2025 Page 6 of 10 The World Bank Colombia Sustainable Development Of Family Farming (P180676) impacts on land are not clearly defined yet and the relevance of this standard will be revised during preparation once project activities affecting land (i.e., the implementation of experience showcases, pilot farms and demonstration plots under subcomponent 2.3) are designed in more detail. At this stage, it is expected that land use will be done on a voluntary basis. Exclusion areas due to conflict or land disputes might be considered, this issue will be evaluated during preparation, also to help ensure that activities do not have unintended consequences and undermine the land tenure claims of communities, including indigenous peoples. An exclusion list will be included in the POM as part of ineligible expenditures. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources The project will not affect protected or sensitive areas nor natural habitats. The improvement of agricultural practices may generate some impacts on biodiversity such as: (i) Loss of vegetation cover; (ii) impact on flora and fauna; (iii) introducing invasive species; (iv) improper use of agrochemicals. The E&S requirements of the MOP will provide guidelines to avoid adversely impacting the living natural resources and measures to ensure that activities do not disturb or cause destruction of any natural and critical habitats. The MOP will include an "exclusion list" to select the locations that: (a) Avoid intervention in environmentally sensitive areas, legally protected areas or in areas with loss of natural and critical habitats; (b) Avoid intervention in areas of unmitigable risk; (c) Avoid intervention in areas that are not compatible with the permitted land use; (d) Implement technologies with less impact. Currently there are not land use changes in relation to habitats. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Relevant Public Disclosure Local Communities Based on the social assessment, the engagement strategy will enhance the inclusion and participation of IPs in an efficient and culturally appropriate manner to ensure accessibility and appropriation through a proper process of consultation and design of benefit sharing. Significant downstream adverse effects are not expected, although it is possible that IPs may not fully access downstream benefits facilitated by TA. Proper engagement must be conducted to ensure their active participation in project design and the determination of implementation arrangements, as well as to financial institutions to support their investment activities (comp. 3). These risks will be addressed and mitigated by E&S requirements in the POM, the stakeholder engagement and the TORs to be prepared for TA activities. During preparation it will be defined if IP engagement can be structured through the SEP and complying with ESS7, or if an Indigenous Peoples Planning Framework (IPPF) will be necessary. ESS8 - Cultural Heritage Relevant Direct, indirect or cumulative impacts on cultural heritage under the Project have not been identified at Concept stage. However, the ecosystems within the Project area, once specified, may have cultural importance for communities, including indigenous peoples, and/or specific physical cultural resources may need to be considered as part of the design and implementation. Impacts on intangible cultural heritage of indigenous peoples related to land is a possibility and will be defined following site selection. The E&S requirements of the POM will include measures to evaluate tangible and intangible cultural resources and guide mitigation measures if cultural heritage is affected by activities. It will include a chance finds procedure. Provisions for inclusive consultations will be integrated as part of Feb 07, 2025 Page 7 of 10 The World Bank Colombia Sustainable Development Of Family Farming (P180676) the SEP, including with relevant authorities of cultural resources in compliance with national laws and regulations, communities and other stakeholders on the ground. ESS9 - Financial Intermediaries Not Currently Relevant 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 Use of Common Approach No C. Overview of Required Environmental and Social Risk Management Activities Public Disclosure C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by Appraisal? An institutional capacity assessment of MARD, AGROSAVIA and ADR will be conducted in terms of E&S risk management during preparation, once the detailed implementation arrangements are defined and the preparation of the E&S instruments has advanced in terms of identifying the risks and impacts along with relevant management needs and requirements. Preparation, disclosure and consultation of advanced drafts of the following instruments are expected prior to Appraisal: Stakeholder Engagement Plan (SEP) including a Grievance Mechanism (GM); POM; if necessary, Indigenous Peoples Planning Framework (IPPF) with specific GM; and Environmental and Social Commitment Plan (ESCP). SEP, POM and IPPF must be disclosed and finalized no longer than 90 days after Effectiveness. Labor Management Procedures (LMP) including GM for Project workers, code of conduct and SEA/SH measures must be finalized prior to initiation of activities or to the hiring of workers, whatever occurs first. The negotiated ESCP will include the commitment to: • Disclose, consult, finalize, implement and update as needed during implementation the SEP, POM, LMP and, if needed, IPPF. • Submit biannual progress reports to the WB during implementation, no later than 30 days after the end of each period. Feb 07, 2025 Page 8 of 10 The World Bank Colombia Sustainable Development Of Family Farming (P180676) • Designate environmental and social specialists responsible for the management of E&S risks and impacts in accordance with the applicable ESS and the E&S risk management instruments before Project Effectiveness and will then maintain this designation throughout the implementation. • Implement LMP in accordance with local regulations and ESS2 and incorporate them as part of the consulting contracts and agreements with the participating entities, and to prevent child and forced labor. • OHS management guidelines for workers, will be included in the E&S requirements of the POM and relevant training will be provided during implementation, in line with ESS2 and the WB Group EHS Guidelines. • Terms of References (TORs) for project-financed activities to be reviewed by the Bank to ensure that ESF requirements are effectively integrated into the activities and their outputs. • It will provide training to participating entities, consultants, service providers and Project workers on ESS, incident reporting, code of conduct and application of the E&S management instruments. If the delivery of innovation or technology transfer includes mechanization, depending on the risks, training to avoid accidents or incidents. • Budget, staffing and operational arrangements for ESF implementation requirements. • E&S requirements of the POM will include a specific section on CERC once activities under component 5 have been agreed. The ESCP will be reviewed periodically, if necessary, during implementation of the activities to reflect adaptive management of changes and unforeseen circumstances related to the activities or in response to evaluation of the performance. The borrower will disclose the updated ESCP. Public Disclosure III. CONTACT POINT World Bank Task Team Leader: Eirivelthon Santos Lima Title: Senior Agriculture Economist Email: elima@worldbank.org TTL Contact: Francisco Javier Bueso Ucles Job Title: Senior Agriculture Economist Email: fbuesoucles@worldbank.org IV. FOR MORE INFORMATION CONTACT Feb 07, 2025 Page 9 of 10 The World Bank Colombia Sustainable Development Of Family Farming (P180676) 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): Eirivelthon Santos Lima, Francisco Javier Bueso Ucles ADM Environmental Specialist: Olga Carolina Rojas Orjuela ADM Social Specialist: Juan Cambreleng Contreras Public Disclosure Feb 07, 2025 Page 10 of 10