The World Bank Sustainable Solid Waste Management Project (P500526) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 11/21/2023 | Report No: ESRSC03953 Feb 07, 2025 Page 1 of 9 The World Bank Sustainable Solid Waste Management Project (P500526) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P500526 Investment Project Financing (IPF) SWEEP 2025 Operation Name Sustainable Solid Waste Management Project Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Bosnia and Bosnia and Herzegovina EUROPE AND CENTRAL Urban, Resilience and Herzegovina ASIA Land Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date Ministry of Finance Federation Bosnia and Herzegovina 19-Feb-2025 27-Mar-2025 and Treasury, Bosnia Ministry of Environment and Tourism and Herzegovina Estimated Concept Total Project Cost Public Disclosure Review Date 16-Nov-2023 65,600,000.00 Proposed Development Objective To improve solid waste management service delivery in participating cantons and municipalities. 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 an integrated SWM approach which addresses not only gaps in physical infrastructure and equipment but also institutional and operational sustainability issues. Improving solid waste management service is essential to green and resilient urban development and sets the participating cities on a long-term path toward a circular economy, in which resources are re-used and waste is minimized. the project is anticipated to yield multiple benefits of an attractive urban environment that supports economic growth and increased livability for residents while helping the country in its path toward climate goals. The project’s integrated approach towards solid waste management is reflected in three main components: Component 1 (Institutional Strengthening for Solid Waste Feb 07, 2025 Page 2 of 9 The World Bank Sustainable Solid Waste Management Project (P500526) Management) through technical assistance will support institutional strengthening and capacity building at both entity and municipal/cantonal levels to improve framework conditions for solid waste management in BiH, assist the path towards EU accession, and support implementation of the BiH ESAP 2030+. Focus areas include i) economic instruments for waste reduction, reuse, and recycling, and cost recovery and long-term financial sustainability, and ii) public information campaigns and incentives for individual behavior change. Component 2 (Support for Sustainable Waste Management Based on Integrated Waste Management and Circular Economy) will finance the improvement of waste collection infrastructure and equipment (including source separation), the development of recycling and composting facilities and pilots, the construction and/or expansion of sanitary landfills and the closure and rehabilitation of dumpsites and unsanitary landfills. Investments under Component 2 will target the regional and municipal levels in both entities. Component 3 (Performance Based Grants) will promote long-term sustainability in the SWM sector by incentivizing performance improvements that enhance sound environmental and financial practices in SWM. The project will follow a framework approach and support selected municipalities, cantons and/or public utility companies in FBiH and RS through loans for eligible sub-projects under component 2 outlined above. The Federal Ministry of Environment and Tourism (FMoET) in FBiH Ministry of Physical Planning, Civil Engineering and Ecology (MPPCEE) of RS will host the project implementing units (PIUs), which will be responsible for the selection of sub-projects, strategic guidance, and overall coordination. The project will be open to all municipalities, cantons and public utility companies and be based on expressed needs, sector priorities at entity level, and a set of criteria that assess the likelihood of implementation success of sub-projects, including i) project readiness and ii) borrowing capacity of participating municipalities, cantons and public utility companies. The WB will also support the entity ministry counterparts to ensure that regional sanitary landfill construction subprojects will be in line with a revised and iterated regional approach for waste management which is to be a part of the development of entity-level SWM plans. Public Disclosure D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings The Project is nationwide and will cover FBIH and RS. The sub project investments may involve expansion of existing sites as well as development of new waste management facilities. The sites for investments shall be identified during the implementation phase of the project based on the feasibility studies. The selection of municipalities and cantons and facilities for development shall be guided by eligibility criteria agreed upon for the Project. Expansion of landfill sites or new landfill sites may require acquisition of land and resettlement. Typically, the Roma people and other poor and vulnerable persons depend on landfill sites for waste collection for their livelihoods. Since 2000, the municipal waste management sector has been under reform driven by the EU policy framework. To align with the EU’s Landfill Directive, the country needs to close down or rehabilitate non-compliant landfills and dumpsites. Awareness-raising measures are required to reduce waste generation and promote reuse and recycling. Only around 70 % of the population is covered by waste management services, although the coverage varies significantly between urban (80-90 %) and rural areas (40- 45 %). BiH BiH relies heavily on landfills for waste disposal, with over 94% of the collected waste being sent to these sites. Currently, many of these sanitary landfills require additional investments for adequate operation. Moreover, some regions do not have regional sanitary landfills and municipalities in these regions rely on their own unsanitary landfills, or illegal dumpsites. Poor management of these sites leads to environmental and Social problems such as polluted soil and groundwater, which pose Community Health and Safety risks. Further, these illegal dumpsites increase the risk of further pollution and contamination downstream and in surrounding areas, which is further exacerbated by more severe rainfalls in the future, driven by climate change. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts Feb 07, 2025 Page 3 of 9 The World Bank Sustainable Solid Waste Management Project (P500526) The responsibility for planning and preparinging legislation inwaste management lies with the Ministry of Environment and Tourism in FBiH (FMET) and the Ministry of Spatial Planning, Civil Engineering and Ecology in RS (MSPCEE). Funds for Environmental Protection are established in FBiH and in RS to collect environmental fees and penalties as well as statistical information on waste generation, collection and treatment. FMET and MSPCEE will host the project management units (PMUs), which will be responsible for the selection of sub-projects, strategic guidance, and overall coordination. The implementing agencies have identified environmental and social focal points who will coordinate the preparation of E&S due diligence documents prior to appraisal. Once the PMUs are established each will be staffed with one Environmental Specialist and one Social Specialist who will coordinate the environmental and social risk management of the project including the preliminary identified environmental and social risks such as Land Acquisition and Involuntary Resettlement, impact on Roma population and Social Exclusion & potential social unrest from expansion of existing facilities/building new facilities. Both FMET and MSPCEE have prior experiences in implementing World Bank projects but not in implementing projects under the requirements of the ESF. Given that the proposed project has multiple activities that require a larger degree of coordination among line ministries at the State, entity cantonal (in Federation) and municipal levels, Project Implementation Teams (PITs) will be established at municipal and cantonal level to implement eligible sub-projects in coordination with the PMUs. The PITs will be staffed with E&S focal points responsible for day-to-day E&S implementation support and monitoring of specific subprojects and activities. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial Public Disclosure A.1 Environmental Risk Rating Substantial The current Environmental risk rating is Substantial. Activities in improving regional and municipal solid waste infrastructure include civil works on constructing new and expanding existing landfills, installing landfill gas and leachate treatments facilities, and closing and remediation of existing dumpsites. Civil works may have to be carried out above and below ground, and associated with tangible environmental impacts. Nevertheless, these impacts are of medium magnitude and reliable mitigation measures can be readily designed and Borrower has necessary experience in implementing and managing these risks. It is important to note that resulting environmental effects of dumpsite closure and remediation are expected to be significantly positive given the very poor current environmental baseline conditions of illegal dumpsites identified as key existing risks and ongoing impacts that the Project seeks to mitigate. The impacts associated with expansion (or new construction) of sanitary landfill sites would include improper collection and treatment of leachate; emission of methane and other harmful gases, impact the existing land uses, natural habitats, traffic increase, noise and odor pollution, air pollution, etc. Substantial A.2 Social Risk Rating The Social Risk Rating of the Project is Substantial. The proposed Project will benefit the wider population of the country by increasing coverage of waste managements systems and by rehabilitating unsensitized landfills which have impact, inter alia, on health and safety of nearby communities. However, a portion of the planned activities are likely to adversely affect different vulnerable groups in the country as well as communities that are hosting project activities. At this time, the main potential adverse social impacts of the Project are identified as:(i) impact on vulnerable groups, such as Roma - the closing of existing landfills as envisaged in component 2 will have a impact on livelihood for waste pickers; (ii) social unrest in regard to possible extending of existing landfills or building new ones Feb 07, 2025 Page 4 of 9 The World Bank Sustainable Solid Waste Management Project (P500526) in populated areas; (iii) tariff increase for solid waste services which is envisaged under policy amendments under component 1 and which will affect the entire population of the country but will have a disproportionate effect on those who already are economically disadvantaged ; and (iv) involuntary resettlement and physical & economic displacement/loss of livelihoods related to expansion of existing landfills and creation of new ones. These risks will be further explored during project preparation and will be laid out in more detail in, inter alia, the A-ESRS. Since specific locations of Project interventions will not be identified prior to the start of Implementation, a framework approach will be used to identify, to the extent possible, potential environmental and social risks and impacts.. Prior to Appraisal the implementing agencies will prepare for each entity an Environmental and Social Management Framework (ESMF), a Resettlement Policy framework (RPF), a Stakeholder Engagement Plan (SEP), Labor Management Procedures (LMP) and the Environmental and Social Commitment Plan (ESCP). 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 Given that the Project envisages a framework approach without pre-identification of the individual sub-projects, the ESMF will be prepared in line with the WB ESF, ESSs, and EHSGs on waste management facilities, and include all Project activities. It will describe the ES processing and instruments (eg. ESIAs, ESMPs or ESMP Checklists) planned for the specific sub-projects. The Project will likely adversely impact vulnerable groups by increase of tariffs, and loss of livelihood for waste pickers. The preliminary identified vulnerable groups include: Roma, low-income and Public Disclosure economically marginalized households; retired, elderly, people with disabilities; single-parent headed households. To manage the potential ES risks and impacts, the key E&S documentation to be prepared by the Borrower before appraisal will include ESMF, SEP, LMP and RPF. The Borrower will disclose these instruments before Project Appraisal in local and English languages and carry out consultations with stakeholders. ESS10 - Stakeholder Engagement and Information Disclosure Relevant The Borrower will prepare a Stakeholder Engagement Plan (SEP) which will include engagement for both Project affected parties (PAPs) and other interested parties (OIPs). Stakeholder engagement will be one of the key cornerstones of the project. It is anticipated that activities around expansions of existing or creation of new landfills may cause resistance in the local communities who as a rule oppose landfills in inhabited areas. Therefore, a transparent, clear and closed stakeholder feedback loop and ensuring that feedback is incorporated into project design and implementation decision-making will be key factors for project success. The project will also involve a diverse set of stakeholders at multiple levels and across sectors, which may be challenging for effective stakeholder coordination during project preparation and implementation. The SEP will outline general principles and to identify stakeholders and plan for an engagement process in accordance with ESS10. ESS2 - Labor and Working Conditions Relevant The project will have (i) direct workers hired to implement the project (PMU and PITs) and (ii) and contracted workers engaged by the contractors and sub-contractors. The project will not engage community workers. However, the engagement of primary supply workers, as per ESS2 definition, will be assessed during project preparation. To Feb 07, 2025 Page 5 of 9 The World Bank Sustainable Solid Waste Management Project (P500526) adequately manage risks related to labor and working conditions, the Borrower will prepare labor management procedures (LMP) prior to appraisal. The LMP will, inter-alia, outline responsibilities for managing labor and working conditions issues, policies and procedures to manage labor risks and OHS risks (including OHS standards that will be applied to the workers hired by the contractors and sub-contractors), minimum working age and the age verification procedure, contractor management and grievance mechanism for workers. The LMP will also include a Code of Conduct and a requirement to carry out SEA/SH sensitization and prevention trainings. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant The construction works financed under sub-components will include generation and management of waste which could be contaminated as its composition is unknown. There are also risks of soil, surface and ground water contamination due to leachate. The plans will explore ways to reduce the waste generation, introduce recycling, and investigate how the wastes are collected, stored and transported from the site, considering the protection of the surrounding environment. All waste management activities will include adequate mitigation and rehabilitation practices, as appropriate, given that waste management will be improved due to the improved collection, segregation, and disposal facilities. The wastewater/leachate from the landfills and methan gases will be collected and treated. The works can result in significant water and soil impacts and air pollution. The specific requirements will be integrated into the ESMF, and within each site specific ESIAs and ESMPs. ESS4 - Community Health and Safety Relevant Main community health safety nuisances will arise from odour, dust, litter and scavengers from these facilities. There Public Disclosure will also be a risk of explosion of compressed methane. Other major issue will be aesthetics - new landfill sites can negatively affect the visual landscape, reducing the aesthetic appeal of the area and potentially impacting property values. Protection of communities from these impacts and improving the overall environmental situation in the vicinity of the project sites will be integrated into the design of specific sub-projects and procedures for the operational period. Significant volume of traffic is expected to be generated during reclamation works. As it is possible that the works will be carried out near the inhabited areas the traffic management plans will be prepared and accordingly followed. The community health and safety impacts will be addressed in site specific E&S (eg. ESIAs, ESMPs or ESMP Checklists) assessments, in line with the ESMF. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant Projects activities, as part of comp 2, indicate that impacts related to land acquisition will be low to midscale and in relation to expansion of already existing landfills and creation of new ones. At this stage it is not certain whether the Project will require physical displacement. To manage the aforementioned risks the Client will, prior to appraisal, prepare an RPF, which will guide the preparation of subproject specific RPs during implementation, as needed. Furthermore, impacts on livelihoods are expected in relation to closing of unsanitary landfills which will impact livelihood generation of waste pickers (preliminary data shows 5-10 waste pickers operate per landfill) and cause potentially significant economic displacement. The adverse impact that the project will have on them will be assessed in the ESMF, while the RPF will contain specific provisions on livelihood restoration and improvement as well as guidance for preparation of livelihood restoration plans where needed. Feb 07, 2025 Page 6 of 9 The World Bank Sustainable Solid Waste Management Project (P500526) ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources Given that the Project involves both expanding existing landfill sites and building new ones ESS 6 is relevant. However, majority of these facilities are likely to be planned for construction near urban areas, and hence are expected to have minimal effects on natural habitats and biodiversity. The ESMF will encompass procedures for assessing the impacts on biodiversity and developing mitigation measures in the ESIAs and ESMPs for each subproject. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities This standard is not relevant, given that there are no indigenous communities as defined by ESS7. ESS8 - Cultural Heritage Relevant While it's currently not anticipated that landfill expansion or construction activities will be situated near known cultural or archaeological heritage sites, the implementation of civil works, particularly excavation, still carries the potential to inadvertently impact cultural heritage. Hence, the ESMF and the site-specific ESIAs and ESMPs will incorporate "chance find procedures." These procedures will be followed by contractors in case there is any risk of chance discoveries during project-supported activities. ESS9 - Financial Intermediaries Not Currently Relevant Public Disclosure 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 C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by Appraisal? Feb 07, 2025 Page 7 of 9 The World Bank Sustainable Solid Waste Management Project (P500526) Prior to Appraisal, the Borrower will prepare, to a level acceptable to the World Bank, consult upon, and disclose the following documents: 1. SEP with GM and start implementing as early as possible during project preparation, 2. ESMF 3. LMP 4. RPF 5. ESCP *Possible issues to be addressed in the Borrower's Environmental and Social Commitment Plan (ESCP) The ESCP will include the following main provisions: - Site specific ESIA or ESMPs to be prepared prior to start of any works - Labor Management Procedures: to be implemented throughout project implementation; - SEP: to be implemented throughout the project cycle and updated when necessary and ensure that the Grievance Mechanism is adequately operational and documented with an appeals mechanism available; -Preparation of site specific RAPs and Livelihood Restauration Plans as per provisions of the RPF prior to any activities implying land take - Dedicated Environmental & Social focal points will be designated to follow up on the E&S requirements; Public Disclosure III. CONTACT POINT World Bank Task Team Leader: Noriko Oe Title: Senior Urban Development Specialist Email: noe@worldbank.org TTL Contact: Marcus John Jin Sarn Lee Job Title: Senior Urban Economist Email: mlee1@worldbank.org IV. FOR MORE INFORMATION CONTACT Feb 07, 2025 Page 8 of 9 The World Bank Sustainable Solid Waste Management Project (P500526) 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): Noriko Oe, Marcus John Jin Sarn Lee ADM Environmental Specialist: Ivana Ivicic ADM Social Specialist: David Jorge Baringo Ezquerra Public Disclosure Feb 07, 2025 Page 9 of 9