INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC3247. Date ISDS Prepared/Updated: 11/28/2007 I. BASIC INFORMATION. A. Basic Project Data
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1 Date ISDS Prepared/Updated: 11/28/2007 I. BASIC INFORMATION A. Basic Project Data INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC3247 Country: Madagascar Project ID: P Project Name: Local Development and Decentralization Program Task Team Leader: Philippe Auffret Estimated Appraisal Date: February 11, Estimated Board Date: May 15, Managing Unit: AFTH3 Lending Instrument: Specific Investment Loan Sector: Other social services (20%);General education sector (20%);Health (20%);General water, sanitation and flood protection sector (20%);Roads and highways (20%) Theme: Decentralization (P);Municipal governance and institution building (P);Administrative and civil service reform (S);Tax policy and administration (S);Other accountability/anti-corruption (S) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 0.00 EC: European Commission B. Project Objectives [from section 2 of PCN] The overall development objective of the program is to improve public service delivery through the financing of basic infrastructure and the provision of capacity building at local level. The program seeks to enhance the capacity of local authorities to utilize participatory and transparent planning, budgeting, implementation, and monitoring systems and to strengthen the capacity of service providers (prestataires de services). It will also assist in improving local revenues and transfers to CTs and STDs. Finally, an important objective of this program is to harmonize existing donor-support in the area of local development (see above) and provide a vehicle for future local development initiatives, including mining areas.
2 To reach this objective, the program will support the Government in the elaboration of its decentralization and deconcentration strategy, and in its implementation. The program will provide financial and capacity development support to the collectivitã s territoriales (communes and possibly regions), and will seek to strengthen the services techniques dã concentrã s so that they can better support communes and regions. Principal output indicators may include: (i) overall resources (central capital and recurrent transfers, own revenues) and staff available to collectivitã s territoriales, (ii) overall resources and staff available to services techniques dã concentrã s, (iii) number of collectivitã s territoriales who are able to prepare development plans and budgets through adequate process, (iv) number of collectivitã s territoriales who receive LDF grants, (v) number of collectivitã s territoriales with annual audit records, (vi) number of local projects operated and maintained satisfactorily, (vii) increase in number of people satisfied by LDF activities. C. Project Description [from section 3 of PCN] The program is expected to have 4 components: Component 1: Support to the decentralization process. In coordination with other Bank activities such as the Governance and Institutional Development Program (PGDI), the PRSCs and the health SWAp, this component consists of activities to (i) support the formulation and implementation of the decentralization and deconcentration strategy, and alignment with sectoral strategies, (ii) strengthen central-local fiscal framework to support local revenue mobilization, ensure adequate transfers to STDs and CTs including for O&M of basic infrastructure, (iii) strengthen STDs to respond to incremental demands for their services, Component 2: Capacity building. This component will support the development of a national capacity building strategy for CTs, provide capacity building grants to CTs, and provide capacity building to service providers (prestataires de service). Component 3: Infrastructure grants to Collectività s Territoriales. This component will finance local infrastructure investments through a central-local intergovernmental transfer. For the duration of this project, grant funds are expected to be channeled through the recently created public agency Fonds de Developpement Local (FDL). Component 4: Support to program implementation, and Monitoring and Evaluation (M&E). This component will support, project management, monitoring, evaluation and audits of the account of the program and accounts of all grant beneficiaries. It will also finance activities to ensure transparency and accountability and engage beneficiaries in the process of verifying outcomes. D. Project location (if known) Rural and urban locations. E. Borrower s Institutional Capacity for Safeguard Policies [from PCN] The environmental classification of the project is Category B.
3 The project is expected to fund sub-projects (such as market places, schools, community clinics, public offices, roads, etc.) of a similar nature and scope as those under the projects of the Bank supported FID (Fonds d Interventions de Developpement). Therefore similar to FID s subprojects it is expected that the environmental impacts of the sub-projects of the Local Development Fund (LDF) will be minor and can be well mitigated and minimized. The project will allow the local population to improve their access to basic public service and will result in improved living conditions. In Madagascar, the Ministry of the Environment, Water, and Forests has an Environmental Impact Assessment Policy and a National Environmental Management Authority, the National Office of Environment (NOE). It ensures the evaluation of the environmental impact of projects. It conducts the review of environmental impact studies and validates environmental management plans. The Ministry is represented at the regional and district levels. F. Environmental and Social Safeguards Specialists Mr Jorge E. Uquillas Rodas (AFTCS) Mr Paul-Jean Feno (AFMMG) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) The project has a category B rating. The investments under this project will focus on the improvement of the delivery of basic services and are expected to result in improved living conditions. The investments under the project will be sectorally varied, given that they will be determined by local level priorities which will differ from one local government to another and cannot be determined a priori. The types of investments are common community development projects whose potential environmental and social effects are well understood, unlikely to be significant, and readily manageable. The main potential environmental issues associated with the project include soil erosion (construction and during road use), health effects to construction workers during construction, land disturbance (construction), waste management for schools, markets place, and community clinics, and noise (primarily during construction). Following the National law on the Protected areas, it is not possible to build infrastructures within protected areas in Madagascar. Therefore, there will be no direct impacts on protected areas. 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) Land acquisition, compensation and resettlement of people may be inevitable for certain categories of sub-projects. This is a social issue of critical concern to the Government and the World Bank, as its impact on poverty if left unmitigated, is negative, immediate and can be wide spread. The infrastructure projects developed in several localities by the collectivitã s territoriales could resultin involuntary resettlement and lands acquisition. These could occur in the case of the widening of roads, the construction of markets, schools, community clinics, etc. While the Ministry of Decentralization could apply the National Law on Land Acquisition, this
4 Safeguard Policies Triggered Yes No TBD is not considered to be sufficient according to the Bank Policy on the Involuntary Resettlement OP Therefore, it is proposed to prepare a Resettlement Policy Framework for the Local Development Fund (LDF) project. Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) Environmental Category: B - Partial Assessment III. SAFEGUARD PREPARATION PLAN A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: 12/17/2007 B. For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS: N/A C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing 1 should be specified in the PAD-stage ISDS. The Environment and Social Management Framework (ESMF): the sub-projects of the future LDF are demand driven and can only be known once the target group/beneficiaries know their budget envelope and have set their priorities. Hence, at the time of the preparation of the project now in the offing, these sub-projects have not yet been identified. The Environmental Law in Environment and the Environmental Assessment Operational Policy 4.01 of the Bank require the Government of Madagascar (represented technically by the Ministry of Decentralization) to prepare an Environment and Social Management Framework (ESMF). An ESMF will be developed and will establish a mechanism that will determine and assess future potential environmental and social impact of the sub-projects under the proposed Local Development Fund (LDF). It further helps to establish mitigation, monitoring and institutional measures to be taken during the planning, budgeting, implementation and operation of the sub-projects. This will help to eliminate or minimize adverse environmental and social impact to acceptable levels. The Resettlement Policy Framework (RPF): A Resettlement Policy Framework (RPF) will be prepared by the Government and approved by the Bank in compliance with the Bank s safeguard policies, related to the Involuntary Resettlement Operational Policy This framework sets the guidelines for the resettlement plans that would have to be prepared for any sub-project that triggers this policy. This policy will be triggered when a sub-project causes the involuntary taking of land and other assets resulting in relocation or loss of shelter; loss of assets or access to assets; and loss of income sources or means of livelihood, 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.
5 whether or not the affected persons must move to another location. The RPF sets out the guidelines for the resettlement plans that would have to be prepared for any sub-project that triggers this policy. The resettlement plans will have to be submitted to the Ministry of Decentralization for approval but would also have to be approved by the Bank before the sub-projects are financed. The Ministry of Decentralization is required to disclose both documents (RPF and ESFM) in-country as a separate and stand alone document so that it is accessible by the general public, local communities, project-affected groups, NGOs and other stakeholders. It will also be shared at the infoshop of the World Bank. The revised ESMF and the RPF will be disclosed before the appraisal date of the project. The SMU has agreed to accept transfer of the safeguard responsibilities. IV. APPROVALS Signed and submitted by: Task Team Leader: Mr Philippe Auffret 11/28/2007 Approved by: Regional Safeguards Coordinator: Mr Warren Waters 11/28/2007 Comments: Sector Manager: Ms Laura Frigenti 11/28/2007 Comments:
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