The World Bank RESTRUCTURING ISDS Youth Economic Inclusion Project (P158138)

Public Disclosure Authorized

Integrated Safeguards Data Sheet Restructuring Stage Public Disclosure Authorized

Restructuring Stage | Date ISDS Prepared/Updated: 24-Mar-2020| Report No: ISDSR29037

Public Disclosure Authorized

Regional Vice President: Ferid Belhaj Country Director: Jesko S. Hentschel Regional Director: Keiko Miwa Practice Manager/Manager: Anush Bezhanyan, Jean Pesme Task Team Leader(s): Johanne Buba, Amadou Dem

Public Disclosure Authorized

The World Bank RESTRUCTURING ISDS Youth Economic Inclusion Project (P158138)

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I. BASIC INFORMATION

1. BASIC PROJECT DATA

Project ID Project Name P158138 Youth Economic Inclusion Project Task Team Leader(s) Country Johanne Buba, Amadou Dem

Approval Date Environmental Category

11-Sep-2017 Partial Assessment (B) Managing Unit HMNSP

PROJECT FINANCING DATA (US$, Millions)

SUMMARY-NewFin1

Total Project Cost 60.00 Total Financing 60.00 Financing Gap 0.00

DETAILS-NewFinEnh1

World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 60.00

2. PROJECT INFORMATION

The World Bank RESTRUCTURING ISDS Youth Economic Inclusion Project (P158138)

PROG_INF O Current Program Development Objective The Project Development Objective is to improve economic opportunities for targeted disadvantaged youth in the selected Governorates of the Borrower.

In the context of this project, “economic opportunities” are defined as the chance to improve (a) earnings of target youth, and (b) access to wage or self-employment for target youth. The reduction of gaps between male and female beneficiaries for accessing key economic opportunities is an integral part of the project.

Proposed New PDO The Project Development Objective is (a) to improve economic opportunities for targeted disadvantaged youth in the Selected Governorates of the Borrower; and (b) support the Borrower’s efforts to mitigate impacts of the COVID-19 pandemic on jobs and household incomes in all Governorates.

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3. PROJECT DESCRIPTION

Overall project status. The Project Development Objective (PDO) is to improve economic opportunities for targeted disadvantaged youth in the selected Governorates of the Borrower. The Youth Economic Inclusion Project (Moubadiroun) was approved by the World Bank’s (the Bank) Board of Directors on September 11, 2017. The Project Loan Agreement was signed on October 14, 2017 and after delayed ratification by the Parliament the Project became effective on May 11, 2018.

Overall Project’s progress towards PDO achievement is rated moderately satisfactory and overall implementation performance is moderately unsatisfactory. But the project implementation has started to gain pace turn around as a result of a more efficient and organized project implementation unit (PIU) and intensive implementation support. A couple of pilot activities have been successfully launched and a new micro-enterprise center (IBNI) has been operational since early March 2020 in Daouer Hicher ( governorate). Several activities are being tested under this pilot and the lessons learned will guide the implementation of the project in the targeted governorates.

At approval, the project contains three components: i) Component 1 - “Identifying and Connecting Target Youth to Jobs” (US$17.47 million); ii) Component 2 – “Supporting Job Creation” (US$32.7 million); and iii) Component 3 – “Building Effective and Accountable Program Delivery” (US$6.33 million). The financing consisted of a loan of Euro 52.7 million (US$60 equivalent at the time of negotiations).

Environmental and Social (E&S) rating for the parent project. Indeed, the PIU has yet to recruit the Safeguards Specialist required to manage and provide due diligence for the ESMF implementation. The Grievance Redress Mechanism is not yet in place, although the procurement process is ongoing. Nevertheless, some rehabilitation works were already carried out in Daouer Hicher, in January and February 2020, during which the PIU used simplified check lists to follow up on the implementation of the mitigation measures.

The World Bank RESTRUCTURING ISDS Youth Economic Inclusion Project (P158138)

Other E&S related changes. The covenant related to “Signature of a convention between the Ministère de la Formation Professionnelle et de l’Emploi (MFPE) and the ANPE, the National Agency of Environment Protection” will be dropped. The full time E&S focal point will be supported by a part time E&S specialist.

COVID-19 crisis. On March 2nd, 2020, the Government of Tunisia (GoT) confirmed its first case of COVID-19. Since then, the number of confirmed cases has been rising every day, reaching 1,022 as of May 5th, 2020. To slowdown the spread of the virus, the GoT has instituted a number of restrictions, including a shutdown of land and air borders, as well as nation- a wide quarantine, a temporary shutdown of non-essential businesses and a curfew from 6 p.m. to 6 a.m. The GoT’s request for the restructuring was officially communicated to the Bank in a letter dated March 30th, 2020, to support social and economic measures announced by GoT to limit the negative impacts of the lockdown.

Proposed restructuring. The project restructuring will: (i) contribute (within the scope of the project) to the GoT’s effort to reduce the impact of the shock on businesses (of all sizes) by providing a counter-cyclical policy response to protect vulnerable households and workers and mitigate job losses, especially in sectors the most affected by the national lockdown; and (ii) improve project’s implementation.

The changes to be introduced include: (i) addition of a new Component “Emergency and post-COVID-19 support to vulnerable groups and private sector firms” to provide immediate and post-confinement cash transfers to self-employed and artisans and grants to micro, small and medium enterprises; (ii) change to the PDO to reflect the newly added Component; (iii) revisions to the Result Framework to reflect the relevant changes; and (iv) amendment of two legal covenants, yet to be met.

Risk assessment and mitigations measures of the new component 4. There are no additional environmental risks associated with the implementation of the activities of the newly added component. However, the social assessment concluded that some social risks would be expected as some businesses will not receive any cash transfers or grant. To mitigate these potential risks, the project will: (i) rely on existing grievance redress mechanisms already put in place by the Ministry of Social Affairs; (ii) use online platforms for registration; (iii) communicate clearly about the eligibility criteria; and (iv) run some consultations for key eligibility criteria. .

4. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN)

Restructuring. Activities extended to all governorates for Component 4. Parent project. To allow proper learning and potential scaling-up, the project will focus on a diversified set of seven governorates (*): (a) four (, , and ) located in the two (2) lagging regions of the Center West and North West (common as well to the World Bank Integrated Landscape Management Project (ILMP, P151030); (b) one in a poor peri-urban area of the Great Tunis region, Manouba; (c) one in the lagging Region of the South West, Kibili, given its geographical location, socio-economic situation and the scarcity of donors’ projects; and (d) , for its diversified economic potential and its proximity to the North and Center West lagging regions. Overall, the combined selection criteria included a balance between (i) presence in lagging regions (using the Regional Development Index); (ii) diversity of socioeconomic exclusion and jobs challenges; (iii) absolute numbers of Social Safety Net (SSN) beneficiaries (PNAFN/Subsidized Health Card); and (iv) potential synergies and complementarity with donors' interventions. In order to facilitate project implementation and learning, a phased approach will be adopted. The Project will start in five governorates

The World Bank RESTRUCTURING ISDS Youth Economic Inclusion Project (P158138)

(Jendouba, Kasserine, Kairouan, Manouba and Sfax) during its first three years, while Siliana and Kibili will be added during the next three years. Key regional public actors will be provided with the opportunity to participate in all capacity-building opportunities, regardless of the phasing approach. (*) Tunisia is currently organized into 24 governorates that can be aggregated into seven administrative regions. Greater Tunis, North East and Centre East are considered “leading regions.” North West, Centre West, South East and South West are considered “lagging regions.”

5. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM

Markus Friedrich Vorpahl, Social Specialist Mohamed Adnene Bezzaouia, Environmental Specialist SAFEGUARD_TABLE 6. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation Restructuring:

The inclusion of the COVID-19 response component will not change the Project’s environmental and social safeguards category B. However, Component 4, especially the cash transfers, comes with additional risks that will be mitigated through an updated Environmental and Social Management Framework (ESMF) and the use of a well- established existing grievance mechanism in the Ministry of Social Affairs (MoSA).

The ESMF prepared for the parent project has been updated to include the new component, an Environmental Assessment (OP) (BP 4.01) Yes additional Occupational Health and Safety (OHS) specific procedure to manage working conditions under the COVID 19 situation, precautionary approach to minimize COVID19 transmission during consultations, and measures to mitigate for potential social risks. The updated ESMF will keep the same negative list of projects excluded from the support, and the same social and environmental screening processes and mitigation measures.

As spelled out in the tripartite Convention and the decree published on April 14th, 2020, the MoSA is responsible for selecting beneficiaries for Component 4.1 and for addressing grievances. One of this Ministry’s responsibilities is to provide cash

The World Bank RESTRUCTURING ISDS Youth Economic Inclusion Project (P158138)

transfers to poor and vulnerable households. This Ministry was also in charge of providing one-time cash transfers in the COVID-19 context. As such, they have various channels for addressing grievances, including a website, a hotline and a widespread network of local offices (260 in total).

Parent project:

The project is categorized as a B. It is anticipated that the effects of the project will be limited, easily mitigated and manageable and not irreversible.

The project with its Subcomponent 2.1 (Support for Value Chain Development) and Subcomponent 2.2 (Support to Microenterprise Creation) entails the building of small civil works that have the potential to generate site-specific environmental impacts. However, the project also targets value chain investments in potentially high-risk sectors, such as agriculture, that pose significant risks related to child and forced labor, OHS, and biodiversity impacts/land-use changes, as well as management, and use and disposal of hazardous materials. Investments in small, newly created microenterprises can also generate potential adverse impacts. These risks will also be taken into account and mitigated. All the other project components primarily relate to institutional development, technical assistance and capacity building. An ESMF was prepared since the exact activities and localizations to be financed under component 2 are not known.This ESMF developed a negative list of projects excluded from the support as well as a positive list of sectors to be financed by the project based on the Bank’s due diligence, the assessment of the environmental and social risks, the impacts of various sectors, and the capacity to manage those risks and impacts. The ESMF was consulted and discussed with various stakeholders (involving representatives of the main national, regional and local institutions and non- governmental organizations) during a national workshop (Tunis March 7,2017). The final version of the ESMF was disclosed in-country through the Ministry of Vocational Training and Employment’s

The World Bank RESTRUCTURING ISDS Youth Economic Inclusion Project (P158138)

(MVTE) website on May 17, 2017 and also through the World Bank's external website on the same day.

Performance Standards for Private Sector No The project will not involve private sector activities. Activities OP/BP 4.03 The project will not finance sub-projects impacting Natural Habitats (OP) (BP 4.04) No critical habitats or protected areas. The project will not finance subprojects impacting Forests (OP) (BP 4.36) No forests areas and forest resources. The project will not support the use or involve Pest Management (OP 4.09) No investments in pesticides or other related products. Physical and cultural resources, if located in the project areas, will not be impacted. There are no Physical Cultural Resources (OP) (BP 4.11) No heavy excavations planned. In addition, no large scale infrastructure interventions are planned under the project. The project's activities will have no impacts on indigenous populations as defined under the Indigenous Peoples (OP) (BP 4.10) No Indigenous Peoples policy OP 4.10, and therefore this policy is not triggered. Component 2 of the Project is expected to finance small enterprises through targeted grants. This financing will not cover physical interventions nor civil works that would trigger physical or economic involuntary displacement. The largest investment could be of the kind of storage facility for small and medium enterprises, which would use existing facilities to upgrade, or acquire necessary facility enlargement areas through commercial transactions. Therefore, the Bank’s Involuntary Involuntary Resettlement (OP) (BP 4.12) No Resettlement policy OP 4.12 will not be triggered. The ESMF includes a safeguards screening mechanism which will ensure that activities requiring involuntary resettlement are not financed under the project. Both the ESMF and the Project operational manual will include guidance to screen sub projects to ensure that no activities triggering involuntary resettlement as defined under OP 4.12, including land acquisition, economic displacement, and displacement of users on public land, will be financed under the project. Safety of Dams (OP) (BP 4.37) No The project will not construct or rely on dam. Projects on International Waterways (OP) No The project will not affect international waterways. (BP 7.50) Projects in Disputed Areas (OP) (BP 7.60) No The project is not located in a disputed area.

The World Bank RESTRUCTURING ISDS Youth Economic Inclusion Project (P158138)

KEY_POLICY_TABLE II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT

A. SUMMARY OF KEY SAFEGUARD ISSUES

1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. Restructuring:

The inclusion of the COVID-19 response Component will not change the Project’s environmental and social safeguards category. However, the inclusion of COVID19-related activities, in particular the cash transfers, will result in additional risks related to the inclusion/exclusion of participants, but they will be mitigated.

The ESMF prepared for the parent project was updated to include an additional occupational and OHS specific procedure to manage working conditions under the COVID-19 situation as well as mitigation measures for any grievances linked to cash transfers and COVID-19-related grants. The updated ESMF will keep the same negative list of projects excluded from the support, and the same social and environmental screening processes and mitigation measures for the rest of the Project.

The updated ESMF will be consulted and disclosed in country and on the World Bank external website on May 27, 2020.

Parent project:

Social Aspects and Safeguards The project includes interventions to tackle supply-side barriers for jobs access linked to poverty and gender, and to boost investments at the firm level to generate job creation in promising sectors. Targeted segments include disadvantaged youth 18-35 years old and work-able members of SSN beneficiary households, as well as disadvantaged youth who are not covered by these SSN programs. The project design was informed by widespread consultations. Civic engagement mechanisms are built in Component 3 through an innovative report card mechanism. Components 1, 2, and 3 of the project are primarily offering process improvement, institutional development, technical assistance and capacity building. The social impacts of the project are expected to be positive. Since the geographic areas and exact activities to be financed under Component 2 are not yet defined, an ESMF was prepared and includes the safeguards screening mechanism. All activities with major or irreversible impacts on the environment and the populations will be excluded.

Environmental Safeguards. The project is classified as category B since its investments will be limited, not irreversible, and easily controllable and manageable. A draft ESMF was prepared by the MVTE and was presented to various stakeholders during a national workshops (in Tunis on March 7, 2017). The ESMF proposes key mitigation measures and guidance for their implementation. The ESMF was disclosed on May 17,2017 in-country through the MVT’s website and on the World Bank's external website on the same day. Project activities will follow the environmental screening process through the Environmental and Social Diagnostic Fact Sheet (FDES) to identify potential negative impacts of sub-projects on the human and biophysical environment. Based on the FDES, an Environmental and Social Management Plan (ESMP) or an Environmental and Social Information Fact Sheet will be required to identify expected risks. Proposed mitigation measures will be included in

The World Bank RESTRUCTURING ISDS Youth Economic Inclusion Project (P158138)

the Terms and Specifications documents for operators and entrepreneurs. Site-specific ESMPs will be prepared, reviewed, approved and disclosed in-country prior to the commencement of any civil works. A full-time environmental and social specialist will be recruited to follow up on compliance and mitigation measures implementation.

2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. No potential indirect and/or long term impacts were identified by the ESMF.

3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A

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. Restructuring:

Within fifteen (15) days after the Project restructuring approval date, a full time Environmental and Social (E&S) focal point will be designated among the PIU staff to follow up on the E&S safeguards instrument implementation. The project will hire, three (3) months after the Project restructuring approval date, a part time E&S specialist to support the E&S focal point and the PIU for E&S related activities (preparation of the ESMP, monitoring, reporting and training).

The Borrower is familiar with Bank safeguards policies and processing procedures.

5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Key project stakeholders include Ministère de la Formation Professionnelle et de l’Emploi (MFPE) and the relevant regional administration representatives at the governorate level, the Ministry of Environment and Local Affairs and civil society organizations.

The ESMF was publicly shared during a national workshop (March 17, 2017). The ESMF allowed the identification of potential social and environmental impacts. It points to key mitigation measures and guidance for their implementation. The final version of the ESMF was disclosed in-country through the MFPE's website on May 17, 2017, and disclosed on the World Bank’s external website on the same day.

DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS

ENV_TABLE Environmental Assessment/Audit/Management Plan/Other

The World Bank RESTRUCTURING ISDS Youth Economic Inclusion Project (P158138)

Date of receipt by the Bank Date of submission for disclosure 13-May-2020 27-May-2020 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors

“In country” Disclosure

COMPLIANCE_TABLE C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL

EA_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes

If yes, then did the Regional Environment Unit or Practice Manager (PM) review Yes and approve the EA report?

Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes

PDI_TABLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for Yes disclosure?

Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups Yes and local NGOs?

ALL_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies?

Have costs related to safeguard policy measures been included in the project Yes cost?

Does the Monitoring and Evaluation system of the project include the monitoring Yes of safeguard impacts and measures related to safeguard policies?

Have satisfactory implementation arrangements been agreed with the borrower Yes and the same been adequately reflected in the project legal documents?

The World Bank RESTRUCTURING ISDS Youth Economic Inclusion Project (P158138)

III. APPROVALS

Johanne Buba Task Team Leader(s) Amadou Dem

Approved By

Safeguards Advisor Nina Chee 20-May-2020

Practice Manager/Manager

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