INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE

Report No.: ISDSC9381 Public Disclosure Authorized

I. BASIC INFORMATION A. Basic Project Data

Country: Africa Project ID: P148853 Project Name: EA Regional Transport, Trade and Development Facilitation Project (Second Phase of Program) (P148853) Task Team Tesfamichael Nahusenay Mitiku Leader(s):

Public Disclosure Authorized Estimated 23-Mar-2015 Estimated 110Jun-2015 Appraisal Date: Board Date: Managing Unit: GTIDR Lending Investment Project Financing Instrument: Sector(s): Rural and Inter-Urban Roads Highways (55P), Public administration- Transportation (20%), General information and communications sector (15%), General industry and trade sector (10%) Theme(s): Trade facilitation and market access (50%), Regional integration (30%), Infrastructure services for private sector development (20%) Financing (In USD Million) U Total Project Cost: 578.00 Total Bank Financing: 500.00 Public Disclosure Authorized Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 78.00 International Development Association (IDA) 500.00 Total 578.00 Environmental A - Full Assessment Category: Is this a No Repeater project?

Public Disclosure Authorized B. Project Objectives 13. The objective of the Second Project is to enhance regional connectivity and integration of with its Eastern Africa neighboring countries, and 's access to sea ports. 14. The proposed project helps the north western part of Kenya and south eastern part of South Sudan to boost export oriented agricultural development by facilitating increased agricultural production along the - Eldoret corridor, endowed with abundant natural resources, through improved transport, trade facilitation, ICT access, as well as the development of export processing O U zones. The proposed program contributes to the overarching goal of facilitating and lowering the cost of intra-regional trade to support regional cooperation and integration of economies in the sub-region.

15. The overall program will be implemented in a series of three projects (SOP). The first project of the program (Phase 1), focused on South Sudan has been approved in May 2014, and supported the improvement of part of the Juba-Nakodol road in the territory of South Sudan and implementation of trade and development facilitation measures, including a new fiber optic link. This second project -Phase 2- will focus on the improvement of the road infrastructure and implementation of trade and development facilitation in the Kenyan territory. The third project - Phase 3- will focus on enhanced support to trade facilitation measures along the Juba-Nakodol- Eldoret corridor and completing the upgrading of the Juba-Eldoret road. This Project Concept Note applies to SOP 2 - the second project. C. Project Description KENYA

17. Component 1: Upgrading Critical Road Infrastructure (US$300 million). This component will support the upgrading of approximately 270 km of the Nadapal-Lockichar road section of the Juba-Nadapal-Eldoret Corridor and related supervision costs.

18. Component 2: Facilitation of Regional Transport, Trade and Development (US$20 million). This component supports promotion of sound transport, trade and development facilitation measures, increasing the efficiency of the corridor. This includes:

Sub-component 2(a): Support to KRA in the implementation of transport, trade and development facilitation, including: (a) harmonization of customs procedures; (b) Establishing One Stop Border Post (OSBP) at the Kenya side of Nadapal, through a design-build (DB) arrangement; (c) the provision of advisory services and equipment for the strengthening of the cross-border management unit of KRA; and (d) Support to the implementation of an integrated border management system.

Sub-component 2 (b): Support to KeNHA, including: (a) Support to corridor performance monitoring; (b) Support to national corridor management committees; (c) Enhancing social infrastructure and social services delivery, including Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome (HIV/AIDS) prevention, and Road Safety along the corridor.

Sub-component 2 (c): Support to MoTI, including: (a) Support to provision of site and services at rest stops, export processing zones and storage facilities, as well as certification of export products and simplifying the process for import-export, in the Kenyan territory; and (b) Connecting export processing zones, rest stops and community centers and service centers along the corridor with ICT, in the Kenyan territory.

19. Component 3: Institutional Development and Program Management (US$5 million)

Sub-component 3(a): Strengthening of KeNHA's and MoTI's institutional capacity through the provision of advisory services and training. Sub-component 3(b): Provision of advisory services, training and logistical support, including office equipment, materials and supplies, and Operating Costs as required to sustain the management and coordination of Project implementation activities, including audits, and monitoring and evaluation of O the execution of the Project.

20. Component 4: Connecting Nadapal with Fiber Optics (US$5 million). Construction of a fiber optic cable, alongside the part of the Juba -_Eldoret road located in the Recipient's territory, between Nadapal and Lokichoggio, and rehabilitation of the fiber optic between Marich Pass and Lokichoggio in the Republic of Kenya.

21. In parallel with the implementation of the second project in Kenya, South Sudan will implement upgrading of critical infrastructure, as well as trade and development facilitation activities, under the first project and other development partner's support. In addition to completing the upgrading of the road section in the South Sudan territory, the establishment of an OSBP and overloading control weigh bridge at Nadapal, as well connecting export processing zones, rest stops and community centers and service centers along the corridor with ICT, in the territory of South Sudan will be implemented under the third project, anticipated to start in 2017.,

The Third in a Series of Project:

22. Support for upgrading of road infrastructure (Investment requirement to be determined depending on the resources to be leveraged for the second phase-up to US$750 million). This includes:

(a) Upgrading of the Juba-Nadapal corridor in South Sudan - Upgrading of the remaining section between and Nadapal road from the first phase. The African Development Bank (AfDB) is expected to support the upgrading of Torit - Lobira (about 70 km - US$100 million), while the European Investment Bank (EIB) may provide support to the upgrading of part of the - Nadapal section. The total cost required to complete the road upgrading in the South Sudan territory is estimated at about US$300 million, including the contribution from AfDB; O (b) Asset management contract to maintain the sections upgraded under design and build o arrangement in South Sudan; and

(c) Support for the Upgrading of the remaining sections of Nadapal-Eldoret road in Kenya - Support to the upgrading of approximately 170 km of the Lodwar -Marich Pass section of the Juba- Nadapal-Eldoret corridor (US$200 million). The Nadapal-Eldoret road which will not be under upgrading contract will be maintained by KeNHA to ensure all season passability. The section between Marich Pass and Eldoret estimated at US$200 million is expected to be financed by Japan International Cooperation Agency (JICA). The European Union (EU)/EIB and AfDB have also expressed interest to provide support to part of the road between Lodwar and Marich Pass that will not be financed by the World Bank.

(d) The third project would also focus on enhanced support to trade and development facilitation measures along the Juba-Eldoret corridor, while completing the upgrading of any remaining sections of the road.

23. The first project focused on supporting the upgrading of part of the road sections in South Sudan territory and implementation of trade and development facilitation measures. The total cost was estimated at US$255 million. The Provisional Scale of the overall Program is estimated at about US$1.3 billion. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) Considering the sequence of the three projects as described above, the physical characteristics of the proposed project are as follows:

11. The proposed road segments within Kenya boundary, Eldoret- Nadapal, to be upgraded under the proposed program is about 595 km and is on the main road corridor linking Tanzania, Kenya and South Sudan. It runs in South-North direction on the Western part of Kenya. The southern part of the general area of the road is densely populated and with high agricultural potential. The road also passes through two large towns Eldoret and Kitale. The northern part, bordering South Sudan is largely sparsely populated and less developed. The section from Eldoret to Lokichoggio is paved, while the Lokichoggio-Nadapal section is unpaved. The improvement will be carried out within the existing right of way. Part of the Nadapal - Marich -Eldoret road is expected to be financed by the World Bank and other development partners in the second project and the remaining part will be upgraded in the third project.

12. The Juba - Nadapal- Eldoret road traverses the south-eastern part of South Sudan and north- western part of Kenya. The section in South Sudan, the Nadapal to Juba Road is an interstate road that links the Central Equatoria and states. There are numerous villages alongside the road, with a varying population. The total length of the road from Nadapal to Juba (Nesitu Junction) is approximately 340 km of unpaved road, which provides transport connectivity between Juba and the district headquarters, towns and villages of Juba, Torit, Budi and Kapoeta Counties in Central and Eastern Equatoria states. The road also passes through significant townships and trading centers i.e. Nadapal, Narus, Kapoeta, Lobira, Torit, Liriya, Ngangal and Nesitu junction which marks the end point of the project road in South Sudan. The road serves as a regional and international corridor linking the hinterland of South Sudan with markets in Kenya and international markets through the port of .

13. The project screening identified a number of negative environmental and social impacts; however, all of them can be minimized (or avoided) through implementation of the appropriate mitigation measures. The project involves widening the road within the existing right-of-way: the carriage way is proposed to be maintained at 7m width, with 2m shoulder on each side of the road. New quarry sites are being identified to be developed for material extraction for the road construction. The road upgrading work may require cutting some trees. Some spots of swampy areas may exist alongside the road, in particular this problem gets pronounced during the rainy season, as along some parts of the road standing water creates ponds and marshlands. It will also require temporary expropriation of some farm land (for material sites and diversions). Work camps will require careful siting and supervision to avoid stress on resources for surrounding communities (e.g. water, fuel).

14. The project, when completed, is expected to have positive environmental and social impacts in the long term, as it will facilitate economic and social development thereby promoting improvement in livelihood of the population in the project influence area. It will also improve drainage and seasonal river crossings, thus reducing runoff from the road. 15. The road upgrading project in both Kenya and South Sudan will follow the existing route and the civil works will be carried out within the existing right of way. On the Kenyan territory around West Pokot, between Lokichar and Kapenguria there is a South Turkana National Reserve area crossed by the proposed existing road and animal passing corridors were observed, which may O U require provision of animal under pass and fencing along the section of the road frequently crossed by animals to direct them to the under pass. Given the scale and nature of the proposed project, the anticipated environmental impacts are reversible and no significant adverse environmental impacts are expected, as the proposed project activities involve road upgrading, minor widening and raising the level of the road within the existing right-of-way. Therefore, the environmental assessment category (EA) for this project is assigned to be category B.

16. For the road sections in Kenya draft Environmental and Social Impact Assessment (ESIAs) and Resettlement Action Plan (RAPs) have been prepared. However, the safeguard instruments have to be updated based on the final design, consulted upon and disclosed before appraisal. Environmental and Social Monitoring Framework (ESMF), Resettlement Policy Framework (RPF), ToRs for Social Assessment (SA) for Eldoret - Nadapal road have been prepared, consulted upon, and disclosed in-country and at the InfoShop on November 26, 2013, and will guide the updating of the safeguards instruments. ESIA, RAP and draft SA Report for Juba-Nadapal road have been prepared, consulted upon, and disclosed in-country and at the InfoShop. The ESIA and RAP were disclosed on November 11, 2013, while the draft SA was disclosed on November 25, 2013.

17. The project triggers OP/BP 4.01 (Environmental Assessment), Natural Habitats (OP/BP 4.04), Physical and Cultural Resources (OP/BP 4.11) and Involuntary Resettlement (OP/BP 4.12). The project also triggers OP 4.10 in Kenya and South Sudan. In both cases, the vast majority of people in the project meet the criteria for OP 4.10; therefore, Indigenous Peoples Plans do not need to be prepared, but Social Assessments will be carried out for the Kenya part, consulted upon and disclosed before appraisal. The findings of the Social Assessment, including the process used in fostering free, prior, and informed consultations leading to broad community support of the project; a grievance redress mechanism; addressing adverse impacts and/or providing benefit-sharing; establishing monitoring, evaluation, and reporting during implementation relating to the communities, will all be included in the project as social risk mitigation measures and benefits. E. Borrowers Institutional Capacity for Safeguard Policies 18. The Kenya National Highways Authority (KeNHA) will be responsible for the implementation of the road upgrading in Kenya. KeNHA has an Environmental and Social Management Unit that has been responsible for handling safeguard aspects of road projects supported by the World Bank and other development partners. KeNHA has sufficient experience in preparation and implementation of safeguard instruments based on World Bank safeguards policies and principles.

19. The proposed project will be implemented by the Project Management Team (PMT) under the Ministry of Transport, Roads and Bridges (MTRB), which was responsible for the implementation of the transport projects supported by the Multi Donor Trust Fund for South Sudan (MTDF-SS). While the PMT is familiar with Bank's safeguards policies and implementation procedures, the capacity of the PMT to manage the safeguards however has been severely lacking and needs to be further strengthened to shoulder the additional tasks. Adequate Technical Assistance would be essential if MTRB is committed to managing the social and environmental impacts of road construction, especially when the state Ministry of Transport and Roads of the Eastern Equatorial State would be involved in project planning and monitoring that has absolutely no experience in managing construction projects. In the long term, this will help in knowledge transfer and support the strengthening of the capacity of the State. The South Sudan Roads Authority (SSRA) is under establishment and the responsibilities of implementing this project would be transferred to SSRA when it will be fully operational and becomes capable of managing major projects. 0 20. MTRB has established an Environment and Social Management Unit (ESMU), which is part of the PMT, however; the ESMU has only one environmental expert. The key responsibilities of the ESMU include: (a) Updating the ESIA prepared for the proposed road; (b) orientation and training of the PMT staff (both at MRB and in the State offices); (c) leading/providing over-sight on the implementation of the RAP and ESMPs; (d) review of monitoring reports submitted by the contractors ESMP implementation; (e) conducting regular visits to project sites to monitor the implementation of ESMP; and (f) providing guidance and inputs to the PMT and contractor on environment and social management aspects. The first project (phase 1) has a provision for environmental and social specialists. Moreover, under the first project has a provision for engaging an independent safeguards firm to support MTRB in the implementation of the RAP and monitoring the implementation of the ESMP in the entire Juba-Nadapal sections. F. Environmental and Social Safeguards Specialists on the Team Alexandra C. Bezeredi (OPSOR)

II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment Yes Road rehabilitation works entail a number of OP/BP 4.01 potential site-specific impacts including cutting of vegetation, soil erosion, sedimentation of water bodies, temporary realignments of stream channels for bridge construction/rehabilitation, generation of construction solid wastes, noise and dust pollution, etc. These impacts may result from ground disturbance, operation of equipment, and labor force housing, quarry and borrow site operation and various ancillary activities during the construction and rehabilitation works. ESIAs for the project describe potential environmental and social impacts and the respective mitigation and recommended design enhancement measures of the proposed Project.

3 ESIAs (together with ESMP and a monitoring plan) for Kenya sections were developed (based on the contract arrangements) in July 2013: (i) Lesseru - Marich Pass, (ii) Marich Pass - Lodwar, and (iii) Lodwar - Nadapal. The ESIAs will be updated, consulted upon and publicly disclosed in Kenya and in the Bank InfoShop prior to project appraisal.

In addition, as the detailed design of the project was not available at the time of the draft ESIA preparation, an Environmental and Social Management Framework (ESMF) has been prepared by KeNHA for the Eldoret-Nadapal road section and disclosed disclosed on November 26, 2013, locally and at the infoshop.

The ESMF will provide an overall guidance in regards to policies and procedures for the updating of the ESIA.

The ESIA for the Juba-Nadapal section in the territory of South Sudan was disclosed locally and at the Infoshop on November 11, 2013. Natural Habitats OP/BP 4.04 Yes This policy is triggered as the proposed road will pass through two wildlife corridors: (i) Kidepo in South Sudan - a seasonal migratory route where animal crosses to find food and water depending on the yearly season), and (ii) South Turkana National Reserve in Kenya - a migratory route for elephants and buffalos. The project is expected to create a temporary impediment on existing seasonal wildlife movements. There is also a risk of introduction of invasive alien species along the road corridor. This section of the road requires appropriate design measures and interventions to be implemented together with robust monitoring program both during project construction and operation phases. Such monitoring program will be designed, based on the consultations with relevant stakeholders: South Sudan Ministry of Tourism and Wildlife and Kenya Wildlife Service. The potential impacts of the proposed operation on natural habitats will be addressed in the environmental safeguards instruments (ESIAs) to be updated for Kenyan sections, which will describe detailed mitigation measures to be included in the contractor bid document to be implemented during construction and operation phases. The project activities will not result in conversion, degradation or restoration of natural habitats or critical natural habitats. Forests OP/BP 4.36 No The road improvement will follow the existing alignment with some widening, which is not expected to impact on forest resources, although the project may involve cutting some trees. In Kenya, the road will pass near Kamatira forest, however the road upgrade will follow existing right-of-way and will not require tree cutting within the forest plantation. Pest Management OP 4.09 No The proposed road project does not involve activities that require pesticide use. Neither direct purchase of pesticides nor financing activities that use pesticides will be supported by the project. Therefore this policy is not triggered. Physical Cultural Resources Yes Although the draft ESIA for Eldoret - Nadapal OP/BP 4.11 sections and the final ESIA for Juba-Nadapal reports identified no PCR along the proposed road, the road works and ancillary activities may encounter some PCR, therefore this policy is triggered. To mitigate or address issues regarding potential impact on the PCR, the project ESIAs include procedure for identification and management of chance finds. If existence of physical/cultural resources is confirmed, the ESIA will be updated to include a Physical/ Cultural management plan. In any case, "Chance Find" procedures will be included in the contract documents. In Kenya, the project will work with County authorities and National Museums of Kenya in case of such finds during civil works. South Sudan is a newly emerging nation and its cultural heritage resources are not yet known. The project will adopt the Chance Finds procedures of the Environmental and Social Screening and Assessment Framework (ESSAF). Indigenous Peoples OP/BP Yes In Kenya, the implementing agency (KeNHA) will 4.10 soon launch a study to conduct a social assessment (SA) to evaluate the project's potential positive and adverse effects on the Vulnerable and Marginalized Groups, and to examine project alternatives to avoid scenarios where adverse effects may be significant. If majority of the project affected people are Turkana or Pokot, no standalone instrument will be prepared, however, the project design includes culturally appropriate socio-economic activities to address social vulnerability within the project activities. The assessment will conducted based on the SA TOR disclosed on November 26, 2013, locally and at the infoshop.

In South Sudan, almost all ethnic groups meet the OP 4.10 criteria; and a draft Social Assessment Report has been disclosed on November 25, 2013. Involuntary Resettlement OP/ Yes In Kenya, the road crosses 4 counties (Uasin Gishu, BP 4.12 Trans Nzoia, West Pokot and Turkana). The proposed activities will be implemented within the existing road reserve. The extent of the required compensation and/or resettlement is expected to be moderate (based on the project screening) and will be determined as part of the RAP preparation for this section of the road. The project screening established that the scale of resettlement is not significant and concentrated within townships along the road. Most compensation and resettlement will involve removal of temporary structures, cutting some trees and relocation of a few permanent structures. Draft RAPs for Kenya side of the project, focusing on Lodwar- Lokichoggio-Nadapal sections of the road, have been submitted for Bank review in August 2013.

As the detailed design reports for the Eldoret - Nadapal sections were not available at the time of the draft RAP preparation, a Resettlement Policy Framework (RPF) outlines the procedures and policies to be pursued when preparing RAPs, has been prepared and disclosed on November 26, 2013. This RPF will guide the revision of the draft RAPs for the three sections between Eldoret and Nadapal.

In South Sudan, the project involves road widening, within the existing right-of-way. The road upgrading will require relocating (basically moving back the properties within the existing open land) of about 180 households and 154 small road side businesses, this will require expropriation of 375 ha of land and 517 land segments with different land use characteristics (predominantly farm lands) will be partially affected, along the Juba-Nadapal section. A RAP has been prepared and disclosed on November 11,2013. Safety of Dams OP/BP 4.37 No The project will not finance construction or rehabilitation of any dams as defined under this policy. Projects on International No Project does not affect any international waterways, Waterways OP/BP 7.50 thus the policy is not triggered. Projects in Disputed Areas OP/ No The project does not operate in any disputed areas, BP 7.60 therefore the policy is not triggered.

III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 30-Nov-2014

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. B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timingi should be specified in the PAD-stage ISDS: November 30, 2014 O IV. APPROVALS Task Team Leader(s): Name: Tesfamichael Nahusenay Mitiku Approved By: Regional Safeguards Name: Alexandra C. Bezeredi (RSA) Date: 17-Mar-2015 Advisor: Practice Manager/ Name: Supee Teravaninthorn (PMGR) Date: 17-Mar-2015 Manager: