INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA14 Public Disclosure Copy Date ISDS Prepared/Updated: 25-Oct-2011 I. BASIC INFORMATION 1. Basic Project Data Country: Montenegro Project ID: P122785 Project Name: HIGHER EDUCATION and RESEARCH FOR COMPETITIVENESS PROJECT (P122785) Task Team Leader: Roberta Malee Bassett Estimated Appraisal Date: 28-Oct-2011 Estimated Board Date: 20-Dec-2011 Managing Unit: ECSHD Lending Instrument: Specific Investment Loan Sector: Tertiary education (100%) Theme: Education for the knowledge economy (67%), Regulation and competition policy (33%) Financing (In USD Million) Financing Source Amount Borrower 0.00 International Bank for Reconstruction and Development 20.00 Total 20.00 Environmental Category: B - Partial Assessment Is this a Repeater project? No 2. Project Objectives The Project development objective is to strengthen the quality and relevance of higher education and research in Montenegro through creating a transparent finance system and a coherent quality assurance system and by strengthening research and development capabilities. 3. Project Description This project is organized around four components: Public Disclosure Copy Component 1: Higher Education Finance Reforms and Implementation of Quality Assurance Norms This component would finance activities to implement the goals of the Strategy through such measures as improving the administrative capacity of the Council of Higher Education and the Higher Education Department, through activities such as study visits and technical assistance, to support the membership in the European Quality Assurance Register for Higher Education (EQAR) and ENQA. It would also finance a sector-wide evaluation of the Universities, which includes baseline, and follow-up studies. The assessment of Bologna implementation would be part of these studies, as well as the assessment of learning environment. Some identified needs of individual faculties would be financed under implementation of the grants subcomponent. Finally, this component would also financed one tracer study and skills and two knowledge labor market studies (one benchmark and one results study), which includes technical assistance for designing such studies and carrying out the related proposed methodologies. Component 2: Human Capital Development through Internationalization Initiatives This component would address cross-border opportunities in two ways: (i) establishing a facilitation agency, which would serve as a clearinghouse for all information regarding international opportunities for students and academic staff; and (ii) funding the development and implementation of a targeted scholarship scheme for graduate and post-graduate students, as well as mechanisms to attract international staff to Montenegrin higher education institutions, into fields deemed nationally important. The activities would also support a feasibility study to examine the potential of introducing some basic changes, such as greater use of English language in the classrooms and provision of subsidized housing, for instance, to lure foreign scholars and students. Finally, as a bridge to Component 3, internationalization efforts can and ought to be embedded into every ambitious academic program, as it would be in the competitively awarded (and well-funded) posts at newly established CoEs. Component 3: Establishing a Competitive Research and Innovation Environment The component would support the development of the criteria defining the CoE and their governance framework and the establishment of one pilot CoE, to be identified through competitive selection criteria, as established in the law. It is envisioned that existing faculties and research institutes would compete, either on their own or in consortia, to establish this CoE. It would help the GoM to prepare the necessary assessments of upgrading and skills gaps and feasibility studies to establish the centers, including co-finance upgrading of equipment, providing technical assistance and training in strategic areas, and funding the development of partnerships with private sector and international research centers. To support larger, more impactful R&D subproject that nurture international collaboration and have a high potential to generate commercial innovations, the Project would provide for a significant expansion of the competitive National Project's research grants program. Under this Page 1 of 3 component, the grants would be awarded to Montenegrin research institutions or firms that wish to initiate a programmatic R&D project together with an international partner. Component 4: Project Management and Monitoring and Evaluation This component was designed to build capacity within MoES and MoS to manage the day-to-day implementation of the HERIC Project, as well as monitor and evaluate its impact. It would support the establishment of a minimal Project Management Team (PMT). This component would finance Public Disclosure Copy the salaries of PMT staff, and financial audits. This component would also finance consultant services of the Technical Service Unit (TSU) within the MoF. Lastly, this component would provide funds for M&E studies. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The Project would be implemented nationally. 5. Environmental and Social Safeguards Specialists Amy Evans (ECSS1) 6. Safeguard Policies Triggered Yes No Explanation Environmental Assessment OP/BP 4.01 ✖ This safeguard policy is triggered because the proposed project will finance the establishment of one pilot Center of Excellence in Montenegro (location not yet known) and the expansion of the existing national research grants program. The project will not finance major civil works or new construction, but is likely to finance minor works (e.g. renovations) within the Center of Excellence (CoE) and grantee institutions. The research grants and CoE may involve lab waste management and biosecurity issues, which are addressed in the EMF. Natural Habitats OP/BP 4.04 ✖ Forests OP/BP 4.36 ✖ Pest Management OP 4.09 ✖ Physical Cultural Resources OP/BP 4.11 ✖ Indigenous Peoples OP/BP 4.10 ✖ Involuntary Resettlement OP/BP 4.12 ✖ Safety of Dams OP/BP 4.37 ✖ Projects on International Waters OP/BP 7.50 ✖ Projects in Disputed Areas OP/BP 7.60 ✖ Public Disclosure Copy II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: OP 4.01 is triggered by the Project as it will finance the establishment of one pilot Center of Excellence in Montenegro and the expansion of the existing national projects research grants in areas of significant national interest. These funds could be use to purchase lab equipment, the operation of which would generate waste. The project will not finance major civil works, and new construction of buildings or schools is not envisaged. Minor scale refurbishment works (e.g. repainting, window alterations, etc) might be needed to adjust the activities that will be hosted within the Center of Excellence and the grantee institutions. The location of the pilot CoE and grantee institutions are not yet established, but it would not be located in any buildings under special cultural protection. The project will also finance the technological equipment for the pilot Center of Excellence and other research institutions. The research grant program will be awarding large scale grants for advanced research (maximum U$500,000) through a competitive process. A negative list of activities that will not be supported by this research program activities (e.g. IFC Exclusion List) will be agreed with the Borrower and included in the Environmental Management Framework (EMF) developed for the project. The potential environmental impact of the CoE and grant sub-projects will be assessed through a screening procedure based on the WB Environmental Assessment safeguard policy (OP/BP/ GP 4.01 on Environmental Assessment), WB Pollution Prevention and Abatement Handbook (PPAH) and the relevant laws and bylaws of the GoM, in particular the Waste Management Law (Official Gazette of the RM, No. 80/05), and the Law on Integrated Prevention and Pollution Control (IPPC) (Official Gazette of the RM No 80/05). The environmental screening procedure outlined in the EMF will become an integrated part of the Grants Operational Manual. When the screening procedure indicates that environmental impacts may occur, a specific Environmental Management Plan (EMP) will be developed for the object (CoE or grant sub-project). The EMP will identify mitigation measures recommended for the assessed adverse environmental impacts. Sub-projects that are screened as category "A" will not be eligible for funding. HERIC is not expected to present any large scale, significant or irreversible negative environmental impacts. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: There are no indirect negative long-term impacts anticipated as a result of this project. Modernization and upgrading of research facilities is expected to result in adoption of good laboratory practices, including for waste management. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Page 2 of 3 The EMF provides an exclusion list and screening process to avoid investments that would meet category "A" conditions or that would trigger any of the other Bank safeguards policies. The EMF provides guidance for preparation of sub-project EMPs to mitigate and monitor environmental risks. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. An Environmental Management Framework (EMF) has been disclosed and consulted prior to appraisal. The EMF includes a screening Public Disclosure Copy checklist for the pilot CoE and candidate research grant recipients to establish the sub-project environmental category. When indicated based on the screening (e.g., category B sub-projects), a sub-project EMP will be prepared and incorporated into the sub-project Grant Agreement. Guidance for preparation of the sub-project EMP is provided in the EMF. Ministry of Science (MoS) as implementing agency for Component 3, Establishing a Competitive Research and Innovation Environment, will be responsible for implementation of the EMF as this is the only component that triggers safeguards policies. MoS will recruit a local environmental specialist funded under HERIC to advise and assist with implementation of the project with respect to environmental safeguards. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Key stakeholders include universities, research institutions and commercial science innovators. MoS conducted a stakeholder consultation on the EMF on 21 Oct 2011. MoS invited directly a wide range of representative stakeholders to the consultation meeting, including from Ministry of Education, Environmental Protection Agency/Ministry of Tourism and Environment, Universities, Research Institutes, environmental NGOs, industry or trade associations and media. Comments received from participants were reflected in the final version of the EMF. MoS has disclosed the draft EMF by posting the draft document (in Montenegrin) on the websites of MoS and the Ministry of Education and Sports prior to the stakeholder consultation meeting. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 17-Oct-2011 Date of "in-country" disclosure 18-Oct-2011 Date of submission to InfoShop 25-Oct-2011 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) Public Disclosure Copy OP/BP/GP 4.01 - Environment Assessment Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes [ ] No [ ] NA [ ] The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Yes [ ] No [ ] NA [ ] Have relevant documents been disclosed in-country in a public place in a form and language Yes [ ] No [ ] NA [ ] that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for Yes [ ] No [ ] NA [ ] the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Yes [ ] No [ ] NA [ ] Does the Monitoring and Evaluation system of the project include the monitoring of safeguard Yes [ ] No [ ] NA [ ] impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same Yes [ ] No [ ] NA [ ] been adequately reflected in the project legal documents? III. APPROVALS Signed and submitted by: Name Date Task Team Leader: Sreypov Tep 25-Oct-2011 Approved By: Regional Safeguards Coordinator: Agnes I. Kiss (RSA) 25-Oct-2011 Comments: Sector Manager: Alberto Rodriguez (SM) 25-Oct-2011 Comments: Page 3 of 3