INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Public Disclosure Copy Report No.: ISDSC6390 Date ISDS Prepared/Updated: 21-Feb-2014 Date ISDS Approved/Disclosed: 30-Nov-2015 I. BASIC INFORMATION A. Basic Project Data Country: Brazil Project ID: P129342 Project Name: Piaui: Pillars of Growth and Social Inclusion Project (P129342) Task Team Michael Drabble Leader(s): Estimated 22-Oct-2015 Estimated 21-Dec-2015 Appraisal Date: Board Date: Managing Unit: GED04 Lending Investment Project Financing Instrument: Sector(s): Secondary education (50%), Health (20%), General agriculture, fishing and forestry sector (10%), General public administration secto r (10%), General water, sanitation and flood protection sector (10%) Theme(s): Education for all (50%), Health system performance (20%), Public expenditure, financial management and procurement (10%), Rural poli cies and institutions (10%), Rural services and infrastructure (10%) Public Disclosure Copy Financing (In USD Million) Total Project Cost: 1133.69 Total Bank Financing: 120.00 Financing Gap: 0.00 Financing Source Amount Borrower 1013.69 International Bank for Reconstruction and Development 120.00 Total 1133.69 Environmental B - Partial Assessment Category: Is this a No Repeater project? B. Project Objectives 17. The objective of the Project is to support the Government of Piaui to achieve: (i) equitable, inclusive and environmentally sustainable human and economic development in Piauí; and, (ii) more efficient and effective public management in these areas. C. Project Description The proposed Sector-wide Approach (SWAp) Investment Loan in the amount of US$120 million to the GoPi would finance Eligible Expenditures Programs (EEPs) under Component 1 and Technical Public Disclosure Copy Assistance under Component 2 aimed at reducing vulnerability, particularly in rural areas, by making economic and human development more equitable, inclusive and environmentally sustainable. EEPs and Disbursement-Linked Indicators (DLIs) would target interventions and results in the following areas: (i) income generation for poor rural farmers; (ii) access, improvement of learning environment and retention in secondary education; (iii) access to healthcare for patients with chronic non communicable diseases; and (iv) strengthening of public sector management. An integrated approach among the aforementioned areas is crucial to foster social and productive inclusion in Piauí and, consequently, to break the poverty cycle. This SWAp complements and leverages policy and institutional reforms enacted by the GoPi in the “Piauí Green Growth and Inclusion DPL” (“DPL 1”) completed in 2012 and the “Piauí Inclusive Production for Sustainable Development DPL” (“DPL 2”) under preparation. The development objectives and sectors included in the proposed SWAp and DPL 2 are fully aligned. Component 1: Equitable, inclusive and environmentally sustainable human and economic development (estimated total cost: US$400 million; Bank: US$105 million) Sub-component 1.1 Promote Income Generation for Poor Rural Farmers. Provision of support for the implementation of EEPs and DLIs, including programs to: (i) strengthen integrated land tenure regularization and land administration by (1) expanding the regularization (i.e.: joined land tenure and environmental regularization) of agricultural land occupation in the state for both small, medium and large farmers as well as Quilombola communities; and (2) hiring contractual services for geo- referencing, cartographic and titling processes; (ii) promote employment and income growth in rural areas by (1) assisting small rural producers to engage more effectively in profitable businesses through PROGERE ; and (2) fostering a transition towards more sustainable agricultural practices; and (iii) improve access to water resources by (1) financing the State Registry of Water Users Public Disclosure Copy (CEARH); (2) identifying the distribution of water resources within the state and at different periods versus demand; and (3) designing and implementing action plans to minimize the effects of draught, which particularly impact the most vulnerable groups. Sub-component 1.2: Improve Access, Learning Environment and Retention in SE. Provision of support for the implementation of EEPs and DLIs, including programs to: (i) increase access in SE through support for the expansion of: 1.) SE distance learning program and 2.) STE; and, (ii) improve learning environment and retention in SE through support for the expansion of: 1.) full-time school; 2.) learning acceleration programs in both FE and SE; and; 3.) the “Live More” scholarship (“Bolsa Mais Viver”). Sub-Component 1.3: Expand access to healthcare for patients with chronic diseases. Provision of support for the implementation of EEPs, including programs to: (i) expand targeted screening to identify patients with chronic diseases; (ii) develop and implement State protocols for diagnosis and treatment chronic diseases; (iii) train FHT in the management of patients with chronic diseases; (iv) develop and deliver technical support to primary health care teams in the management and prevention of chronic diseases; (v) create five specialized centers focusing on exams and consultations for patients with chronic diseases; and, (vi) provide incentives for performance to PHC teams. Component 2: More efficient and effective public management through cross-sectoral technical assistance (Estimated total cost: US$15 million; Bank: US$15 million). This component would provide technical assistance to strengthen the Borrower’s public management in the following areas: Public Disclosure Copy (i) integrated land tenure regularization and land administration to increase capacity for supervision and management of information and data regarding land; (ii) support for studies and evaluations, as well as the implementation of monitoring systems and support for program beneficiaries to guarantee employment and income growth in rural areas; (iii) support for studies and establishment of monitoring systems to improve educational evaluation and policy-based evidence in the choice of key interventions implemented under Sub-component 1.2. One suggested activity would be the carrying out of diagnostic and preparation of a state teacher professional development plan to palliate for the lack of a teacher policy and training plan for teachers, school directors and education administrators; (iv) support for health diagnoses and evaluation and administration focused on neglected and chronic non communicable diseases; and, (v) support for establishment of monitoring systems and capacity building for improved public sector management, including financial management and procurement (See Annex 5 for a tentative list of proposed activities for each sector). D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) State of Piaui E. Borrowers Institutional Capacity for Safeguard Policies The State of Piauí has some experience with Bank Safeguards and has at its disposal the gamut of state environmental agencies to analyze, monitor and supervise environmental safeguards. During preparation the institutional capacity of state agencies involved with the implementation of the different components of the project will be assessed by the team, which will also define a strategy for strengthening the institutional capacity of these agencies as necessary. F. Environmental and Social Safeguards Specialists on the Team Alberto Coelho Gomes Costa (GSURR) Public Disclosure Copy Ernesto Sanchez-Triana (GENDR) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment Yes Given the nature and scale of proposed investments OP/BP 4.01 in environmental regularization, and in the health and education sectors, which should not have significant adverse impacts, a category B is proposed. As currently described, the proposed project consists of an eligible expenditures program in the health, education, water management and rural development sectors that involve strengthening sector procedures and carrying out civil works in urban (adaptation of existing buildings or construction of new annexes) and rural (improve access to water resources) settings and technical assistance for strengthening public sector management in education, health, rural development, public administration and environment (including mainly the regularization of rural land tenure and water resource management). Based on the preliminary assessments undertaken, the project Public Disclosure Copy is expected to have an overall positive impact on the environment as it seeks to promote the environmental compliance of rural properties through the regularization of land tenure and implementation of the rural environmental cadaster, which requires landholders to define legal reserves and permanent protection areas within rural properties, recuperating vegetative cover when necessary. Additionally, rural development activities will support the dissemination of production practices that are more environmentally sustainable. The proposed project will also carry out civil works to adapt, expand or build school buildings and health units. The impact of these works should be small and localized, in urban areas, and are expected to occur in land currently owned and occupied by the state education and health agencies. As no specific project activities are expected to be defined prior to appraisal, the client will prepare an Environmental and Social Management Framework (ESMF) which will include environmental and social assessments, to provide guidance on potential issues that could arise during Project implementation and Public Disclosure Copy mitigation measures, including measures to be taken to avoid potential social conflict that could result from project activities. The ESMF will include an Environmental Management Plan and an Environmental Manual for Civil Works, which should also include guidance on proper building adaptations for adequate management of health care waste. The ESMF will also include an analysis of any economic or social impact project activities, including Technical Assistance, might have on vulnerable groups, traditional communities or poor rural communities. The ESMF will include: i) the existing environmental and social baseline conditions of the affected areas and communities (area of influence within state of Piaui) - with special focus on the assessment of the three social groups that are claiming for recognition of their indigenous identity; ii) the full range of the proposed infrastructure interventions and agriculture production activities; Public Disclosure Copy iii) screening criteria for sub-projects; iv) environmental management tools and mitigation measures applicable during the design, construction and operations of the sub-projects; v) an assessment of the potential social and environmental impacts of the activities proposed under the technical assistance component in order to define the approach needed for considering environmental and social aspects within the TA; vi) screening provisions for evaluating potential impacts on Physical Cultural Resources; vii) the criteria for documenting voluntary land donations; viii) the results of the public consultation on the draft of the ESMF; ix) the legal provisions; x) the institutional provisions – which is a particularly important issue, given the limited institutional capacity for environmental and social management and the multiplicity of sectors involved. The ESMF report will be submitted to the Bank by appraisal stage, and will be disclosed and disseminated through the executing agencies websites, and will be consulted with key stakeholders. Public Disclosure Copy Natural Habitats OP/BP 4.04 Yes Activities under the proposed Project should lead to positive impacts on natural habitats, such as their conservation and recovery in private properties. Thus, OP 4.04 is triggered and the ESMF will include criteria and necessary management measures to insure that potential impacts on sensitive biodiversity areas are taken into account, and guidance on the proper restoration of sensitive habitats, including for the improvement or preservation of natural corridors when possible The screening mechanisms of the ESMF will ensure that activities that result in significant conversion or degradation of critical habitats would not be eligible and that those that do have some impact will have mitigation measures. Forests OP/BP 4.36 Yes This Project will contribute to the conservation of the Cerrado and Caatinga biomes in private landholdings in the state of Piauí. It is expected to have a positive impact by promoting the restoration and/or preservation of Legal Reserves and Permanent Preservation Areas in private lands, in compliance with the Brazilian Forest Code, through Public Disclosure Copy implementation of the rural environmental cadaster. The ESMF to be prepared should consider the requirements of OB/BP 4.36 whenever restoration activities are being planned, and include guidance on the use of native species. It will also include screening mechanisms to ensure that investments under the Technical Assistance Component which could affect the management of forests or the welfare of forest dependent communities are properly assessed and that measures are included to ensure that any adverse impacts (if any) on forests be mitigated. Pest Management OP 4.09 Yes Although the project will not support the purchase or increased use of pesticides and other agricultural chemicals as defined under the policy, some of the agricultural activities selected for project support may make use of these substances. The ESMF under preparation will assess these activities and define guidance for reducing the environmental impact of using pesticides according to the principles of OP 4.09, and suggest incentive measures for the adoption of Integrated Pest Management and agro- ecological practices where possible. It will also assess whether pesticides will be used as part of construction works and make the corresponding Public Disclosure Copy recommendations according to OP 4.09. Physical Cultural Resources Yes Some sub-project investments could result in OP/BP 4.11 physical interventions with small earthworks involving the chance finds of physical cultural resources. The ESMF will include specific screening provisions for evaluating potential impacts on cultural resources and will provide specific guidance on the chance finds procedures. Indigenous Peoples OP/BP No The team has conducted a screening exercise and 4.10 determined that in the project areas there are no indigenous peoples that fulfill the four characteristics of the Indigenous Peoples Operational Policy. In the state of Piauí, there are three social groups that are currently claiming recognition of their Indigenous Identities (they call themselves as the Cariri, the Codó-Cabeludo and the Tabajara peoples), but they do not fulfill the four criteria set by OP 4.10 to identify Indigenous peoples: (a) despite of the self- identification as members of a distinct indigenous cultural group, they are not recognized by others as indigenous peoples; (b) they hold no collective attachment to geographically distinct habitats or Public Disclosure Copy ancestral territories in the project area and to the natural resources in these habitats and territories; (c) they do not hold customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and (d) they do not keep an indigenous language different from the official language of the country or region. The Social Assessment of the project – to be part of the project s ESMF – will include a section focusing on these three groups to verify the degree of vulnerability they face and the barriers they encounter in accessing public policies and programs and, subsequently, the team will consider if they require a distinct treatment for social inclusion purposes. Involuntary Resettlement OP/ Yes OP 4.12 is triggered because some activities under BP 4.12 Sub-component 1.2 aiming to promote employment and income growth in rural areas may require land acquisition and have adverse impacts related with involuntary resettlement. As these activities cannot be known during project preparation, an Involuntary Resettlement Framework will be prepared by the client. The Involuntary Resettlement Framework will address all cases in which land acquisition is related with (i) activities that cannot technically be Public Disclosure Copy implemented in another location, (ii) the affected households do not willingly agree to donate land or assets for the community sub-project without compensation, or (iii) the criteria for “voluntary asset donation” are not met. The criteria for documenting voluntary land donations currently discussed to be included under the RPF are also included in the ESMF as part of the broader screening exercise. The client will carry out a screening exercise to assess land tenure and land occupation issues related with the areas needed for civil works related with the construction of five specialized health centers focusing on exams and consultations for patients with chronic diseases (Sub-component 1.5). This exercise will identify if the civil works will require or not involuntary land taking with potentially adverse impacts related with involuntary resettlement. If involuntary land taking will take place, then OP 4.12 will be triggered and the required Involuntary Resettlement Plans or Abbreviated Resettlement Plans will be prepared by the client before appraisal and in compliance with Public Disclosure Copy OP 4.12 principles and guidelines. The team will also assess whether activities related with land titling may require or not the involuntary taking of land by the state. Initially, activities to be supported will include solely the regularization and titling of state owned lands that (a) have been traditionally occupied by poor rural people, Quilombola and other traditional communities and (b) have been occupied in “good faith” by agricultural developers in the Cerrado biome. Being this as it may and as OP 4.12 “does not apply to disputes between private parties in land titling projects,” the team will request that the client undertakes a social assessment and implement measures to minimize and mitigate adverse social impacts related with land titling, especially those affecting poor and vulnerable groups (OP 4.12, Footnote # 8). If land titling activities may require the involuntary taking of lands by the state and as these areas will certainly not be identified prior to appraisal, then the team will require that the client prepare an Involuntary Resettlement Framework in compliance with the OP 4.12. It is worth noticing that involuntary physical and/or economic displacement is not envisaged as part of Public Disclosure Copy activities related with environmental regularization and, therefore, OP 4.12 may not be applied to them because of two reasons that shall be taken into consideration: a) Although it could be conceived that private landholders may face enhanced application of existing legislation as a result of the regularization process that might impact their livelihood, such restrictions will occur on private land, will not be connected to the creation of legally designated parks or protected areas and, therefore, their impacts would fall under the Bank's EA policy (OP 4.01). b) OP 4.12 does not apply to regulations of natural resources on a regional level carried out with the purpose of promoting their sustainability (OP 4.12, Footnote # 8). If there be need of applying the policy to the land regularization component (in the unlikely event there was need of involuntary land acquisition), the Resettlement Policy Framework under preparation to address the issues under Sub-Component 1.1 will be expanded and updated. Public Disclosure Copy Safety of Dams OP/BP 4.37 No This policy is not triggered since the project will not finance any dams nor will it rely on the operations of existing dams. Projects on International No This policy is not triggered since the project will not Waterways OP/BP 7.50 affect any international waterways as defined under the policy. Projects in Disputed Areas OP/ No This policy is not triggered as the project will not BP 7.60 work in any disputed areas as defined under the policy. III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 17-Mar-2014 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS: A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: B. For simple projects that will not require a QER, the target date for preparing the PAD- stage ISDS: Not applicable C. Time frame for launching and completing the safeguard-related studies that may be needed. Not applicable The specific studies and their timing should be specified in the PAD-stage ISDS. IV. APPROVALS Public Disclosure Copy Task Team Leader(s): Name: Michael Drabble Approved By: Safeguards Advisor: Name: Francis V. Fragano (SA) Date: 30-Nov-2015 Practice Manager/ Name: Reema Nayar (PMGR) Date: 30-Nov-2015 Manager: 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.