The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 10/27/2021 | Report No: ESRSC01152 Oct 27, 2021 Page 1 of 13 The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Rwanda AFRICA EAST P171462 Project Name Commercialization and De-Risking for Agricultural Transformation Project Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Agriculture and Food Investment Project 10/28/2021 12/16/2021 Financing Borrower(s) Implementing Agency(ies) Ministry of Finance and Development Bank of Economic Planning Rwanda, Rwanda Agriculture and Animal Resources Development Board Public Disclosure Proposed Development Objective The Project will aim to improve commercialization and access to financial services in selected agricultural value chains. The target beneficiaries will be farmers’ cooperatives, commercial farmers and small and medium-sized agri- enterprises (agri-SMEs), operating primarily in the following selected value chains: rice, maize, and horticulture. Financing (in USD Million) Amount Total Project Cost 300.00 B. Is the project 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 [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] Oct 27, 2021 Page 2 of 13 The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) The project will be structured around four components: C1 - Value Chain and Infrastructure Development, C2 - Agricultural Finance and Insurance, C3 - Contingency Emergency Response Component, and C4 - Project Management and Capacity Building. The components are strongly interlinked, as they would be jointly addressing the binding constraints to Rwanda’s agriculture transformation from a subsistence sector to a knowledge-based value creating sector. Land constraints and fragmentation, limited access to finance, insufficient skills, and weak market and value chain linkages are the main challenges Rwanda is facing to making the leap to a market-driven agri-food system. In response, Component 1 will focus on strengthening market and value chain linkages and on improving land use efficiency for commercial agricultural production. It will build up demand for financial services that can unlock investments to modernize and grow the agri-food sector. Component 2 will address the supply-side of financial services for agriculture, by leveraging and deploying private sector capital and strengthening the provision of instruments to de-risk the sector. Component 3 will be a Contingent Emergency Response Component (CERC). Component 4 will focus on Project Management. At the heart of this transformation are cooperatives and agri-SMEs, who aggregate production, services and risks and can effectively establish links upstream and downstream their respective value chains. The project will follow a holistic value chain approach, with a focus on agri-food value chains that have been chosen based on their market and growth potential: rice, maize, and horticulture. The project will mainstream climate smart agriculture technology to build resilience across all components and will leverage innovation, data analytics and disruptive technologies throughout all its activities. Equally, it will promote partnerships around innovation and productive/market infrastructure development (to include irrigation, and storage/processing facilities), and aim to Public Disclosure address both supply- and demand-side constraints affecting agricultural investments. At the same time, it will promote as appropriate private sector participation, fully in line with operationalizing the principles of Maximizing Finance for Development (MFD) in the agriculture and food sector and value-chains and with the Government’s new strategic orientation towards greater private sector role in agriculture and food. The project will apply a clear gender lens both in its design and in its implementation, with the aim to ensure that barriers to women’s access to productive assets, services and information are mitigated. As such, the scope of project activities and eligibility criteria will be reflective of the relevant gender needs, while the results framework will ensure that indicators include a gender disaggregation, where applicable. Most importantly, the project design and implementation will be fully informed by the Government’s Gender and Youth Mainstreaming Strategy (April 2019) in agriculture, which includes specific provisions on how to address gender gaps across five priority areas: (i) financial services; (ii) markets and value chain representation; (iii) extension support, inputs and technologies; (iv) institutional mainstreaming capacity; and (v) empowerment and decision-making. D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] The Project intends to improve commercialization and access to financial services in selected agricultural value chains. The site specifics for subprojects have not been identified at this stage, however, the project will be implemented countrywide. The Project target beneficiaries will include farmers’ cooperatives, commercial farmers and small and medium-sized agri-enterprises involved in the target value chain of Rice, Maize and Horticulture. Oct 27, 2021 Page 3 of 13 The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) Component 1 is Value chain and Infrastructure development with focus on strengthening market and value chain linkages and improving land use efficiency for commercial agricultural production. Through this component, the project will invest in Productive assets (equipment and facilities) for cooperatives and agri-SMEs to help them aggregate, preserve, process and store their produce for value addition. These may include: threshers, dryers, warehousing, collection centers, packing stations, refrigerated trucks, cold storage centers amongst others. The E&S risks and impacts associated with investments in productive assets will vary from low to moderate depending on location of the investments, size and type of equipment or facilities financed by the project. The project will deploy matching grant model with an option of borrowing for this subcomponent of productive assets. In component 1 also, the project will finance seed production and multiplication, rehabilitation of existing irrigation schemes and development of new irrigation schemes, improve land husbandry and mobilize water users into associations for efficient water use and crop diversification. There will be moderate to substantial E&S risks and impacts associated with infrastructure works for irrigation and in the case of land husbandry activities on marshland reclamation and land terracing for adjacent hillslopes for slope stability. Component 2 will address the supply-side of financial services for agriculture, by leveraging and deploying private sector capital and strengthening the provision of instruments to de-risk the sector. Component 3 will be a Contingent Emergency Response Component (CERC). Component 4 will address critical skills gaps. Component 2 will involve Financial intermediaries (FIs) , providing credit line for long-term agriculture finance, enhancing existing partial credit guarantee (PCG) scheme , strengthen institutional capacity of FIs already involved in agricultural finance and as well strengthen linkages between credit and agricultural insurance. The Component 2 will be led by the Development Public Disclosure Bank of Rwanda (BRD), the wholesale FI, which will on lend to commercial FIs, Micro Finance Institutions (MFIs) , SACCOs and support insurance companies develop acceptable products. The E&S risks will be managed through BRD's Environment and Social management System (ESMS). The proposed Project would be complementary to other Bank-financed interventions in agriculture in Rwanda. The Rwanda Sustainable Agricultural Intensification and Food Security Project (SAIP, P164520) is focusing on improving productivity, food security and market access of beneficiaries in selected value chains. While SAIP has a focus on smallholder beneficiaries and on increasing their productivity and food and nutrition security, the proposed project will have an integrated focus on promoting agri-food commercialization; in this context, irrigation will be included selectively in value chains and geographies where it has the potential to expand marketable volumes through commercial production. Additionally, a second Program for Results operation, the Transformation of Agriculture Sector Program Phase 2 (P161876), is supporting the implementation of Rwanda’s PSTA4; the Strategic Plan aims at strengthening the capacity of the Ministry of Agriculture and Animal Resources to create the enabling environment that would encourage greater private sector investments and increased commercialization across key value chains. D. 2. Borrower’s Institutional Capacity The project will be implemented by the Rwanda Agriculture and Animal Resources Development Board (RAB) and the Development Bank of Rwanda (BRD). A Project Implementation Unit (PIU) will be housed in RAB with responsibility for overall coordination and management of the project, while BRD, will implement all activities under Component 2 (Agriculture Finance and Insurance), and Sub-component 4.2 (Capacity Building for Agriculture Finance and Insurance of the Project). Oct 27, 2021 Page 4 of 13 The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) MINAGRI, RAB and BRD have been responsible for implementing several World Bank-funded projects in a satisfactory manner. These include the Land Husbandry, Water Harvesting and Hillside Irrigation Project and the Third Rural Sector Support Project (both closed), the Sustainable Agricultural Intensification and Food Security Project (SAIP, ongoing), as well as the Renewable Energy Fund Project, the Housing Finance Project, the Socio-economic Inclusion of Refugees and Host Communities in Rwanda Project. RAB currently has one environmental specialist and one social development specialist for the PIU under SAIP. With this new operation, District safeguards capacity to manage environment and social risks will require staffing and training on the Environment and Social Framework (ESF) and the related ten Environment and Social Standards (ESS). RAB capacity assessment will further be assessed during the project preparation. BRD will provide both wholesale credits to Participating Financial Institutions (PFIs), Insurance companies and direct lending to private Agri-SMEs. BRD is already providing retail agricultural loans to private enterprises. BRD currently has an existing Environmental and Social Management System (ESMS) and no dedicated staff for Environmental and Social (E&S) Risk Management. The E&S risks are currently handled by an Agronomist and the overall risks department of BRD. The ESMS for BRD and other FIs that will be participating the project will be further assessed during project preparation in line with ESS9. Given the multi-sectoral interfaces of this project , a Steering Committee will be established to ensure strategic guidance and oversight during project implementation. The Committee, chaired by MINAGRI and co-chaired by MINECOFIN and will include representatives of relevant government agencies (such as Ministry of Trade and Industry, RAB, National Agricultural Export Development Board – NAEB, BRD, etc.), private sector, and other stakeholders. Public Disclosure Other players in the project will include the commercial banks, microfinance institutions and saving and credit cooperatives ( SACCOs). All these institutions will need to be oriented on ESFs and specific standards where applicable. There is opportunity to inbuilt E&S capacity building into component 4 which already has capacity building subcomponent. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial Environmental Risk Rating Substantial The multi-sectoral nature of the project coupled with the broad agricultural activities to be financed countrywide presents Substantial Environmental risk rating. Environmental, Health and Safety (EHS) risks and impacts are expected under Components 1, 2, and 3. Component 1, will finance investments in productive assets (equipment and facilities like threshers, warehouses, dryers, cold storage centers, packing stations etc) , irrigation infrastructures, land husbandry and agro-inputs ( seeds, fertilizers and agrochemicals). The EHS risks and impacts will arise from infrastructure works for irrigation and in the case of land husbandry activities on marshland reclamation and land terracing for adjacent hillslopes for slope stability. Also during implementation phases for example there are health and safety risks for workers and communities in case of irrigation dams constructed, noise / air pollution, waste management in case of equipment an facilities. Additionally, under the land husbandry subcomponent, the project will consolidate land for large scale production of targeted commercial viable crops like Rice, maize and Horticulture. This expansion/consolidation of farms coupled with intensification of existing low technology system will require significant use of agrochemicals which presents substantial risks and impacts. Oct 27, 2021 Page 5 of 13 The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) Component 2 will support existing Agri-SMEs and there is a likelihood that these may have pre-existing / ongoing environment, health and safety (EHS) issues/risks like inappropriate use of agrochemicals, poor waste management practices, air pollution etc. Component 2 also supports FIs including insurance companies, commercial banks, Micro finance institutions and SACCOs whose Environmental and Social Management System either partially exist or are non existent thus needing to strengthened/developed. Generally, the potential environmental, health and safety impacts are expected under this component will be site specific, local, reversible and temporary and can be mitigated through appropriate mitigation measures. All project activities that are likely to pose substantial environment risks will require appropriate mitigation measures to be integrate in the project design to reduce the risks. The project risk will further be assessed during project appraisal. Activities under component 4 involving skills development for cooperatives, financial and insurance companies would not be expected to have direct environmental impacts. Social Risk Rating Substantial The project will potentially involve significant land acquisition and resettlement due to the nature of the activities to be implemented under component one of the project that include irrigation schemes, on-farm infrastructure, such as greenhouses, warehousing, cold chain and pack houses among a number of subprojects to be implemented. Some of the supported on-farm infrastructure (green houses, warehousing, cold chain) will be privately owned and constructed through FIs. Others, especially those determined to be public goods, will be directly fully or partially financed by the project. More clarity will be provided during preparation. As there is a high dependence on biomass for household energy needs (used by 80 % of the population) and increasing urbanization (at 4.4% per year) creates significant pressure on natural resources already, notably land, water, and forests with over 60% of households cultivate less than 0.7ha, and 30% cultivate less than 0.2ha. The pressure to avail more land for large scale Public Disclosure commercialization may give rise to limited degree of social conflict which should be properly addressed during project design and through the implementation of the SEP. There are concerns related to land consolidation for irrigation schemes and terracing and the redistribution of plot in the irrigation schemes. Further assessment of these social risk posed by this new operation will be assessed during the preparation of this project and appropriate mitigation measures will be integrated in the project design. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: The project proposes to undertake basic infrastructure works that could include, Irrigation infrastructure, small-scale irrigation technology, solar pumps, water meters, on-farm infrastructure, such as greenhouses, warehousing, cold chain and pack-houses,processing and value addition infrastructure, such as dryers, shellers, or mills, will help increase commercialization. The potential environmental and social risks and impacts from the works will include the generic construction works risks and impacts that include the envisaged intensified use of agrochemicals on consolidated farm lands presents associated risks like surface and underground water pollution, non targeted species loss, soil pollution and human poisoning. These likely risks and impacts will be systematically identified, assessed and taken into account when developing a pesticide management plan. Other environmental concerns are the sustainability of water extracted for irrigation, aquatic biodiversity consideration, competing demand for water for Oct 27, 2021 Page 6 of 13 The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) other purposes, siltation of wetland, rivers and water reservoir due to erosion from steep slopes, likely effluent discharge to the environment and air pollution from the Agro-processing facilities, noise, dust emissions, vegetation clearance, soil erosion, accidents and injuries among others. The project could also involve some agricultural encroachers in the marshland areas considered government land who will need to be compensated or resettled in accordance with ESS5 if identified. The severity of these risks and impacts will further be assessed project locations have been identified. The project offers an opportunity for gender and disability-inclusion. The project will apply a clear gender lens both in its design and in its implementation, with the aim to ensure that barriers to women’s access to productive assets, services and information are mitigated. As such, the scope of Project activities and eligibility criteria will be reflective of the relevant gender needs, with the while the results framework will ensure that indicators include a gender disaggregation, where applicable. This approach will be mainstreamed into the project design. It is envisaged that the project will prepare the following instruments: Resettlement Policy Frame Work (RPF), Environment and Social Management Framework (ESMF) , Environmental and Social Impact Assessments (ESIAs) for designed irrigation schemes, Integrated pest management plan; Labor Management Procedures (LMP) and Stakeholders Engagement Framework (SEF). The E&S instruments will be prepared and disclosed prior to appraisal in country and on the Bank’s external website. Details of the disclosure dates will be agreed upon and included in the Environment and Social Commitment Plan (ESCP). The instruments prepared will incorporate relevant guidance from the World Bank’s Environmental, Health and Safety Guidelines (EHSG) i.e. general and sector specific guidelines. During project implementation, also ESIA's, ESMPs and RAPs will be prepared. Since Component 2 of the project will involve FIs, the ESMS of BRD and other Participating Financial Institutions ( MFIs, Insurance Companies, Commercial Banks) will be Public Disclosure assessed during the project preparatory phases and time bound action plan developed for strengthening any identified gaps. The agriculture sector has been funded by the bank for a number of projects that include Rural Sector Support Project (I-III), Agriculture Program for Results, and with these projects various safeguards were prepared (ESMF,RPF, RAPs, ESMPs, ESSA) and implemented. Rwanda has a law governing agrochemicals (including pesticides) in Rwanda https://www.minagri.gov.rw/fileadmin/user_upload/documents/Law_and_Regulations/Agrochemical_Law_- _Official_Gazette_no_37_of_10.09.2012__2_.pdf). The bank funded Feeder Roads program will contribute to this project with linking agriculture production areas and markets by constructing all weather feeder roads. During implementation, coordination between both implementing agencies, MINAGRI/RAB and RTDA, will be needed to ensure planned feeder roads serve better agriculture areas to be supported by the project. The Project will be structured around four components. The components are strongly interlinked, as they would be jointly addressing the binding constraints to Rwanda’s agriculture transformation from a subsistence sector to a knowledge-based value creating sector. Land constraints and fragmentation, limited access to finance, insufficient skills, and weak market and value chain linkages are the main challenges Rwanda is facing to making the leap to a market-driven agri-food system. In response, Component 1 will focus on strengthening market and value chain linkages and improving land use efficiency for commercial agricultural production. At the same time, it will build up demand for financial services that can unlock investments to modernize and grow the agri-food sector. In turn, Component 2 will address the supply-side of financial services for agriculture, by leveraging and deploying private sector capital and strengthening the provision of instruments to de-risk the sector. BRD’s ESMS and other PFIs such as MFIs, commercial Banks and Insurance companies will be further assessed prior to appraisal. Component 3 is Oct 27, 2021 Page 7 of 13 The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) Contingent Emergency Response Component (CERC) which will be triggered incase of situations of urgent need of assistance and Capacity Constraints. Component 4 will address critical skills gaps. At the heart of this transformation are cooperatives and agri-SMEs, who aggregate production, services and risks and can effectively establish links upstream and downstream their respective value chains Areas where “Use of Borrower Framework” is being considered: The project will rely on the Bank ESF during project preparation and implementation. The location, nature and scale of planned works have not been confirmed yet. ESS10 Stakeholder Engagement and Information Disclosure The project implementation is likely to involve several stakeholders that include the following, the Ministry of Agriculture, Rwanda Agriculture Board (RAB), Districts, Rwanda Environment Management Authority (REMA), Cooperatives, Rwanda Development Bank, Ministry of Finance, economically-displaced squatters, community members around the irrigation schemes, NGOs, CSOs, and marginalized community members. The client will prepare a Stakeholder Engagement Framework (SEF) that will be disclosed prior to appraisal. Further assessment of the required level of stakeholder engagement for this operation will be assessed during the project preparation process. Public Disclosure B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions Anticipated key labor and working conditions risks and impacts are mainly associated with the planned construction works under component one, the anticipated occupational health and safety risks from civil works and use of agrochemicals. The project will put in place child labor prevention mechanism in the design of the project. The client must provide appropriate measures for the protection of vulnerable project workers such as women and people with disabilities. The majority of those involved will be local community members. As such, these employees will remain subject to the terms and conditions of their existing public-sector employment. Due to the discreet nature of the activities to be implemented under this project under component one, labor camps and influx are not anticipated. These individuals will however be subject to the requirement of ESS2 in relation to labor and working conditions including occupational health and safety and grievance mechanisms. Likewise, any technical consultants contracted by the Project will also need to adhere to such standards. To ensure health and safety of workers during the construction and operational phases of the project, a Health, Safety and Environmental (HSE) plan, in line with Good International Industry Practice (GIIP) and WBG EHS guidelines will be prepared as part of the ESMF. During operation, this will include detailed requirements for the transport, handling and disposal of chemicals/ reagents and other hazardous materials. The plan will include procedures on incident investigation and reporting, recording and reporting of non-conformances, emergency preparedness and response procedures and continuous training and awareness to workers. In addition, the project will need to develop and implement written labor management procedures that will set out the way in which project workers will be managed. The LMP will be prepared prior to Appraisal. Oct 27, 2021 Page 8 of 13 The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) ESS3 Resource Efficiency and Pollution Prevention and Management Although there will be further assessment of the relevance of this ESS, the envisaged intensified use of agrochemicals on consolidated farm lands presents associated risks to surface and underground water pollution, non targeted species loss, soil pollution and human poisoning. These likely risks and impacts will be systematically identified, assessed and taken into account when developing a pesticide management plan. The project intends to develop irrigations schemes in different sizes and the operation of an irrigation scheme involves significant water use. The designs of irrigation schemes have to adapt efficient water use technics and also acquire water user permits from competent authorities before the use of the water. The irrigation schemes also use large quantities of fertilizers if not well managed could end up polluting the surrounding sources of drinking and cause health risks to the communities. All potential risks and appropriate mitigation will further be assessed during the preparation process of this project. The project will include estimate of gross GHG emissions . The project's mitigation potential and net carbon balance from GHG emissions and carbon sequestration due to project implementation will be assessed. As the project activities have a potential of high water use for agriculture purposes, a dedicated study will be conducted to inform the project design and avoid significant adverse impacts on communities and the environment. The requirements of ESS3 will be integrated into the ESMF and subsequent ESIAs/ESMPs. Public Disclosure ESS4 Community Health and Safety The project will involve construction of irrigation schemes and use of agro-chemicals which could have direct impact on ecosystem services that may result in adverse health and safety to and impacts on affected communities. The ESIAs will include risk/hazard assessment and appropriate mitigation measures in view of risks posed by hazardous chemicals to the community. If investments into irrigation dams are identified as feasible during project preparation, dam safety measures and emergency preparedness will be development commensurate to the risks posed by the size of the dams. The client will also identify project potential risks and impacts on ecosystem services that might be exacerbated by climate change such as food and water supply, flood regulating regimes. Also as the project will involve civil works, the community health and safety issues related to this project could potentially include, sexual exploitation and abuse. The following will be further assessed during project preparation: Health and safety risks likely to be caused by incidences of labor influx as a result of the project; Gender-Based Violence (GBV) or Sexual Exploitation and Abuse (SEA) which may arise from interactions with community members. Oct 27, 2021 Page 9 of 13 The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) A preliminary GBV risk assessment rated this proposes as low risk project. The use of security personal is not envisaged. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement The project activities are likely to require acquisition of land for subproject activities under component one. The borrower will prepare a Resettlement Policy Framework (RPF) and disclose it prior to project appraisal. The anticipated resettlement is temporary and mainly economical. The scope of the land acquisition anticipated under this project will further be assessed during the project preparation and appropriate mitigation measures integrated in the project design. The voluntary land donation process is not anticipated under this project. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ESS6 is considered relevant. The project is considering investments into the irrigation schemes whose locations may include marshland, modified habitats with significant biodiversity, including tree plantations serving as wildlife migration corridors; livestock pastures serving as grazing for wildlife; horticultural fields that provide pollen and nectar for bees and other pollinators; or wetlands of unidentified importance. The use of agrochemicals also posses risks to non target species on land and aquatic ecosystem and below ground biodiversity. However, the project implementation sites are likely to be located in modified landscapes i.e. already used for agricultural activities. The ESMF will include specific measures to avoid or minimize this negative impacts including Public Disclosure elements for screening and applying mitigation hierarchy for the above risks. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities Relevance of this ESS will be further assessed during project preparation as part of the ESA process. At this stage the project sites are not yet identified. We expect to explore the relevance of this standard as we get more information especially about selected locations for the subproject sites. ESS8 Cultural Heritage Relevance of this ESS will be further assessed during project preparation as part of the ESA process. Although no impacts to cultural heritage are anticipated, the project will incorporate “chance find” procedures in the ESMF when physical cultural resources are encountered during construction. ESS9 Financial Intermediaries Relevance of this ESS will be further assessed during project preparation as part of the ESA process. The project component 2 on agriculture finance and insurance will operate through commercial banks and microfinance institutions to support the agricultural sector with financial tools and services. BRD’s the identified Financial Institution (FIs) which will carry out direct lending to private agricultural enterprises and on lends to other FIs. The Oct 27, 2021 Page 10 of 13 The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) ESMS of BRD and other FIs such as MFIs, commercial Banks and Insurance companies that will be involved in this project will be assessed prior to appraisal. The Participating Financial Intermediaries (PFIs) as once identified will be required to put in place and maintain an Environmental , Social Management System (ESMS) to identify, assess, manage and monitor the E&S risks and impacts of their subprojects on an ongoing basis. Access to finance will allow agri-food producers and other value chain actors to contribute to the acquisition of equipment, infrastructure, inputs, setting or upscaling agriculture processing facilities, etc. that they need to improve their performance C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways Yes OP 7.60 Projects in Disputed Areas TBD III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE A. Is a common approach being considered? No Financing Partners IFC and IBRD Public Disclosure IFC expects to be a collaborative partner to the project through engagement in Advisory Services technical assistance. This IFC work would support agriculture firms and businesses in agriculture value chains as well as government in the areas of knowledge, capacity building and regulatory and legal reforms – especially where work will crowd in private sector engagement, facility investment and to open or create markets. This support can be provided across all components, but with a specific focus on Component 1 and Component 3 (policy-related activities). B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: Preparation of the following instruments: 1. SEF 2. RPF 3. LMP 4. ESMF 5. ESIAs for designed Irrigation schemes 6. ESMS for BRD ( enhancement) 7. ESCP Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): Water balance study Oct 27, 2021 Page 11 of 13 The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) Preparation of ESIAs/ESMPs including risk/hazard assessments Preparation of RAPs Preparation of agro-chemical management plan - IPM E&S Audit Dam safety assessment C. Timing Tentative target date for preparing the Appraisal Stage ESRS 18-Jan-2021 IV. CONTACT POINTS World Bank Contact: Winston Dawes Title: Senior Agriculture Economist Telephone No: 25-D-2023522302 Email: wdawes@worldbank.org Contact: Brice Gakombe Title: Financial Sector Specialist Telephone No: 5396+3316 / 250-252-591-316 Email: bgakombe@worldbank.org Borrower/Client/Recipient Public Disclosure Borrower: Ministry of Finance and Economic Planning Implementing Agency(ies) Implementing Agency: Development Bank of Rwanda Implementing Agency: Rwanda Agriculture and Animal Resources Development Board V. 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 VI. APPROVAL Task Team Leader(s): Winston Dawes, Brice Gakombe Practice Manager (ENR/Social) Robin Mearns Recommended on 29-Jun-2020 at 13:16:14 GMT-04:00 Safeguards Advisor ESSA Peter Leonard (SAESSA) Cleared on 27-Oct-2021 at 16:14:31 GMT-04:00 Oct 27, 2021 Page 12 of 13 The World Bank Commercialization and De-Risking for Agricultural Transformation Project (P171462) Public Disclosure Oct 27, 2021 Page 13 of 13