This goal will also be achieved by supporting on-going efforts from donors in the following fields:

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1 Report No: I <--Please check for duplicates! Integrated Safeguards Data Sheet (Updated) Date ISDS Prepared/Updated: 02/13/2002 Section I - Basic Information Report No A. Basic Project Data Country: GAMBIA, THE Project ID: P Project: GATEWAY PROJECT Task Team Leader: Michel Audige Authorized to Appraise Date: October 2, 2001 IBRD Amount ($m): Bank Approval: February 28, 2002 IDA Amount ($m): Managing Unit: AFTTR Sector: MT - Trade Policy Reform Lending Instrument: Adaptable Program Loan (APL) Status: Lending I.A.2. Project Objectives: The development goal of Phase 1 is to lay the foundation for expanded private investment export-oriented production and employment, through the establishment of the Free Zone and an improved institutional environment. This objective will be achieved by: Establishing a self-sustaining Gambia Investment Promotion and Free Zone Agency (GIPFZA) Marketing and facilitating local and foreign investments in well-targeted economic sectors Developing a 10 ha. pilot Free Zone (FZ) at the airport Promoting privately financed and operated FZ-related businesses, including teleport services Helping the government to implement its divestiture strategy Mitigating any social and/or environmental impacts that could result from project implementation Preparing the APL 2, including a better interface between the FZs and the population along the Gambia River. This goal will also be achieved by supporting on-going efforts from donors in the following fields: Building business and technical skills among private and public sector actors Facilitating administrative procedures for private enterprise creation, investment, and operations in tourism, trade services, and agriculture sub-sectors Modernizing ports and airport services and streamlining customs clearance procedures. I.A.3. Project Description: A. Physical Investment for a new Free Zone at the airport This component will establish the physical infrastructure necessary for an operational Free Zone (FZ) at the airport. It includes (i) infrastructure to enable the Free Zone at the airport, including common users facilities and utilities; and (ii) consulting services for supervising works.

2 B. Establishment of GIPFZA. This component will establish the GIPFZA as a self-sustaining entity that manages the FZs and promotes trade and investment. It will include (i) operational support to GIPFZA; (ii) technical assistance; (iii) consulting services to complete and implement marketing plans and market surveys; (iv) consulting services for investment promotion; and (v) studies (River-Free Zones Interface, a Trade & Transport facilitation survey, a Quality Management Systems (QMS) Audit for the Customs & Excise Department). C. Support to the Gambia Divestiture Agency This component supports the Government agenda for privatization. It will include (i) technical assistance to support the Government Divestiture Program; (ii) divestiture safeguarding and monitoring; and (iii) divestiture consensus building through national and international camp. D. Capacity-Building This component includes training activities for both the public and the private sectors directly involved in investment and Free Zone-related businesses. Training will include quality management and control processes, the ISO certification concept, and information about US and European markets' access regulations for products originating from ACP countries. I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) The Free Zone site is located at the Banjul Airport. B. Check Environmental Classification: A (Full Assessment) Comments: An Environmental Impact Assessment (EIA) of the Gateway Project began in May 2000 under the auspices of the EIA Working Group of the Gateway Project Task Force. During the study, numerous field and office consultations took place. Specific consultations occurred to discuss the EIA Inception Report (July 4, 2000) and the Draft Final Report (September 28, 2000). The final EIA report was submitted in October 2000, along with a draft Environmental and Social Management Plan (ESMP). In order to present and discuss publicly these two documents, which were updated in May 2001, a consultative meeting was held at the Senegambia Beach Hotel on 26th June As a follow-up to the consultative meeting, a three-week public review process was launched in early July The documents were placed in all the administrative commissioners offices and municipalities, as well as at the National Assembly and the National Library. The NEA then collated the comments from the public and sent them to the consultants for their Final ESMP Report. The EIA treated five alternative FZ sites, but finally focused on the two sites chosen in the IDI/Jebel Ali Free Zone Authority Feasibility Study - the airport site and the Bund Road site for the port. However, the detailed engineering design and further environmental investigations revealed that the Bund Road site was unsuitable because (i) the soil and geotechnical characteristics make it prone to flooding and unsuitable to support buildings and warehouses at a reasonable cost; and (ii) this is a potential "RAMSAR" site. Consequently, the Bund Road site has been dropped -2 -

3 from the Project. During the operations phase, the environmental impacts will depend on the kinds of economic activities carried out in the FZ. Since these activities have not been defined, the EIA carried out a broad generic assessment of a range of activities, such as food and fish processing, electronics/assembly, cotton spinning, and wood furniture making. C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) Yes Forestry (OP/GP 4.36) Yes Natural Habitats (OP/BP 4.04) No Safety of Dams (OP/BP 4.37) No Pest Management (OP 4.09) No Involuntary Resettlement (OP/BP 4.12) No Indigenous Peoples (OD 4.20) No Cultural Property (OP 4.11) No Projects in Disputed Territories (OP/BP/GP 7.60)* No Projects in International Waterways (OP/BP/GP 7.50) No *By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D.1a. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. While only the EA related to both airport and Bund Road sites, the ESMP only focuses on the airport because the Bund Road site development has been dropped during project preparation for the reasons explained above. The revised ESMP includes a summary, in matrix format, of the environmental and social issues related to the development of the airport site and the mitigating measures. To facilitate implementation of the ESMP, the impacts and mitigation measure have been separated for (i) the construction phase and (ii) the operations phase, and the responsibility for each measure has been clearly assigned. For the construction phase, there will be many common impacts and mitigation measures, which will be implemented through contract clauses. For the operations phase, a standard format and guidelines for completing activity-specific EIAs and EMPs has been defined. At minimum, the ESMP will provide sample guidelines from the World Bank Pollution Abatement Handbook on potential activities. The expected potential environmental and social impacts that were identified and addressed in the ESMP are related to dust generation during construction, odors' emission, increase of noise and road traffic, and attraction of people to the neighboring villages. II.D.1b. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. -3 -

4 II.D.lc Describe any potential long term impacts due to anticipated future activities in the project area. Longer term impacts will depend on the kinds of economic activities carried out in the FZ. Given the broad range of potential activities and the level with which they may intensify in the area, such as food and fish processing, electronics/assembly, cotton spinning, and wood furniture making, unmanaged growth and poor management could lead to irreversible damage. II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) The National Environment Agency (NEA) has been designated to monitor, in close coordination with the GIPFZA, the Project's overall impact on the environment. Central to this assignment is the safeguarding of environmental and social concerns. A Memorandum of Understanding will be signed between the NEA and GIPFZA to state clearly the role of NEA during the project processing cycle and the relationships of the agency with GIPFZA. This role will lie in assessing, controlling, and enforcing that all activities related to the Gateway Project are environmentally and socially sound. To this effect, the NEA will require the capacity to review all proposed activities, assess all potential environmental and social impacts, liaise and coordinate with other authorities with responsibilities in the relevant areas and subjects, and issue specific measures to promoters of proposed activities to prevent or reduce negative impacts. Furthermore, it will require the capacity to monitor the effects of on-going activities and the effectiveness of the ESMP. Another basic principle in the ESMP is that of having the polluter pay for environmental and social degradation or problems the activities may cause. This includes not only the off-setting, remedying, or prevention of negative impacts but also to contribute to whatever is required to analyze, study, and monitor possible impacts on the natural and social environment. II.D.3. Describe arrangement for the borrower to address safeguard issues The Gambian Government is strongly committed to protecting its environment. During the preparation phase of the Gateway Project, several workshops were held to present and discuss with all stakeholders the findings of the preparation studies. In order to ensure a friendly environmentally development of the FZ, a Memorandum of Understanding has been passed and signed between GIPFZA and the NEA on January 4, As part of the MOU, NEA is to provide GIPFZA with technical advise especially with: (i) prior review of any proposed investment in the FZ to determine if they are covered in the ESMP, (ii) requirement of EIA and EMP for activities not covered in ESMP, (iii) coordination of the implementation of the ESMP, subsequent EIAs and EMPs, and (iv) permanent monitoring of the compliance with the recommendations detailed in these documents. II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The project preparation studies (feasibility study, engineering design, Environment Impact Assessment) have been supervised by a Project Task Force Committee housed in the DOSTIE that includes representatives from (i) governmental agencies (DOSTIE, NEA, GCAA, DOSFEA); (ii) public - 4 -

5 enterprises (GPA, GAMTEL); and (iii) the private sector (Chamber of Commerce, Jimpex). The task force has discussed and finalized the terms of reference for these studies, and has participated in the finalization of the project design, the contents of each project component, project phasing, financing, the triggers, and performance indicators. As part of project preparation, 120 participants from both the public and private sectors gathered at a first public seminar in April 1999 to present Government strategy towards the development of Free Zones in the Gambia. A second workshop was held in June 2000 to present the main findings of the updated feasibility study carried out in 1994 and to reach consensus on the Project's rationale and design. Project design also integrates the concerns and prospects of the local and foreign private sector in The Gambia through several meetings of the Project Team with this sector during preparation missions. The Project will provide the infrastructure to facilitate investment and a competitive incentive package, as well as the reforms that will be implemented in the port and airport, and the creation of the one-stop shop will streamline trade and enterprise creation, thereby responding to the issues raised by investors. In regard to the investors' other concern - high interest rates - the Project will work in close coordination with the IMF Program. Finally, given the sensitive nature of environment in The Gambia, the Project has been designed in close coordination with both the National Environment Agency and the Department for Forestry and Natural Parks, and addresses the concerns of these departments. The ESMP has indicated that there are no major social issues associated with the development of the airport Free Zone site. Social development outcomes, mainly increased employment, will be implemented through the contractors, developers, and investors. Preferences for local employment are generally expressed in contract documents and agreements with the developers. E. Safeguards Classification. Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. I S1. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas [XI S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable I S3. - No safeguard issues I SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan: Expected Actual 8/15/2001 9/6/2001 9/5/

6 Date of distributing the Exec. Summary of the EA to the ED (For category A projects) 9/5/ /26/2001 Resettlement Action Plan/Framework: Expected Actual Indigenous Peoples Development Plan/Framework: Expected Actual Pest Management Plan: Expected Actual Dam Safety Management Plan: Expected Actual If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Michel Audige 02/04/2002 Project Safeguards Specialists 1: Kristine M. Ivarsdotter/Person/World Bank 02/04/2002 Project Safeguards Specialists 2: Nina Chee/Person/World Bank 02/04/2002 Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Charlotte S. Bingham 02/04/2002 Sector Manager/Director: Maryvonne Plessis-Fraissard 02/04/2002 For a list of World Bank news releases on projects and reports, click here - 6 -