Integrated Safeguards Data Sheet s4

INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC3192

Date ISDS Prepared/Updated: 11/13/2007

I. BASIC INFORMATION

A. Basic Project Data

Country: Lao People's Democratic Project ID: P087716 Republic Project Name: LA- Khammouane Rural Livelihoods Project Task Team Leader: Steven N. Schonberger Estimated Appraisal Date: February 11, Estimated Board Date: May 15, 2008 2008 Managing Unit: EASRE Lending Instrument: Specific Investment Loan Sector: General agriculture, fishing and forestry sector (30%);Sub-national government administration (30%);Crops (20%);Irrigation and drainage (20%) Theme: Rural markets (P);Rural services and infrastructure (P);Rural policies and institutions (P);Decentralization (P);Other environment and natural resources management (P) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 7.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 0.00 FRANCE: French Agency for Development 0.85 NETHERLANDS, Govt. of THE (Except for MOFA/Min of Dev. Coop 1.23 2.08

B. Project Objectives [from section 2 of PCN] The primary objective of the project is to help the province achieve sustainable economic development and poverty alleviation. This objective would be achieved through the following intermediary project outcomes; • Promotion of private sector investment through better linkages between rural produces and markets, with infrastructure, organizational support, and advanced knowledge; • Improved rural productivity through direct intervention in areas of severe poverty, provision of necessary rural infrastructure, and support for the diversification of production systems and improved technology; and • Enhanced provincial level capacity to ensure optimal allocation of public resources and accountability in service delivery. C. Project Description [from section 3 of PCN] The Khammouane Rural Livelihoods Project (KRLP) will be implemented over a period of six years (2008-2014). The components, as they stand at the moment and as provisionally agreed with provincial stakeholders, are briefly described below.

Component 1: Local development and livelihoods support. This component consists of four sub-components: (i) the District Development Fund (DDF); (ii) the Provincial Development Fund (PDF); (iii) the Village Livelihood Support component; and (iv) technical assistance and capacity building support for strengthening local public expenditure and financial management in general. In this way, the component would support the investment at all levels from the provincial level to the villages, and ensure adequate management capacity. These are summarily described in the following sections: (i) The District Development Fund (DDF) will operate as a substantial financial and support facility made up of three elements Basic Block Grants, Workfare Block Grants, and Conditional Cash Transfer Block Grants. The DDF will provide the districts with financial resources with which to fund a range of infrastructure and service delivery investments in support of poverty alleviation. (ii) The Provincial Development Fund (PDF) will begin to roll-out in FY 2011-2012 and will make modest annual allocations to the province, intended to finance provincial level investment expenditures in five key sectors (agriculture, education, health, transport and business development) which benefit all districts. (iii) Village Livelihood Support Subcomponent will provide households in selected villages of Khammouane province with access to resources and capacity-building with which to increase the asset base and enhance the livelihoods of individuals and households in a sustainable way. This subcomponent would be made up of three inter-related elements the first being the provision of seed capital to village groups on either a poverty-targeted grant basis or as matching grants for village savings groups, named the Village Livelihood Support Component (VLSC),the second being capacity building and support for such village groups (with a view to ensuring longer term sustainability of VLSC investments), and the third being a farmer support facility, through which poor rural households will be able to acquire knowledge of new or improved farming and related technology through the Provinces agriculture extension services. This subcomponent would help the 50 poorest villages which are not yet covered by any existing village support programs funded by other donors or the government.

Component 2: Xe Bang Fai irrigation.This component will (a) support feasibility studies for irrigation; (b) carry out priority rehabilitation works; and (c) explore the possibilities for supporting dry season cropping, as an alternative approach to deal with the wet season flood risk. For the new irrigation schemes in Ngomalath, this component will support the development of about 500 hectares located in the most upstream area, where communities have long been engaged in intensive rice farming.

Component 3: Provincial Capacity Development. This component will address the project objective of enhanced provincial level capacity to ensure optimal allocation of public resources and accountability in service delivery.

Component 4: Project coordination and support. Project implementation will be supported by a small provincial coordination section (PCS) within the Office of Governor of the Khammouane Province

D. Project location (if known) The project will be implemented in Khammouane province in its first years, in a limited number of districts, but gradually covering all nine districts in the province. Most of the investment under Component 1 would take place in the villages, as district and province capitals where human settlements have already developed. For the investment to be supported by Component 2, a specific location identified during the preparation stage is the Tha Thot irrigation area in Gnomalath surrounding the NT2 downstream channel. While those identified for small flood protection scheme (Hatsayfong area and Thong Katha system) are located in the lower part of the Xe Bang Fai River. Major land used in the Tha Thot area is paddy field with existing irrigation while that along Xe Bang Fai is paddy field and villages, including Buddhist temples. Other specific areas for two small irrigation schemes along the lower Xe Bang Fai will be identified during further preparation.

The population of Khammouane province is ethnically heterogeneous, with almost 40% of the total population being made up of ethnic minorities. For the most part, ethnic minority populations inhabit the upland and eastern parts of the province, whilst the Lao Loum population is generally located in the Mekong valley and immediately adjacent areas.

E. Borrower’s Institutional Capacity for Safeguard Policies [from PCN] Lao PDR has a relatively well-developed environmental impacts assessment (EA) and social safeguards policies to different degrees, but implementation is weak, and capacity is low. The infrastructure related activities of the project will be implemented by the Khammouane province through the Department of Irrigation (DOI) and the provincial and district offices. These agencies have limited direct experience with the World Bank safeguard policy but some (such as Gnommalat, Mahaxai, etc.) have some exposure to the Bank safeguards requirements through their participation in the planning and implementation of the downstream program for the Nam Thuen 2 project. Given that most of the civil works and related infrastructure are small in nature, the safeguard risks are considered small. However, sufficient support to implement the identified safeguards measures during implementation will be built into the design of the project.

F. Environmental and Social Safeguards Specialists Ms Manida Unkulvasapaul (EASRE) Mr Chaohua Zhang (SASDS) Mr Sybounheung Phandanouvong (EASSO)

II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) X The project (Components 1 and 2) will involve small scale civil works including rural road and infrastructure, small irrigation, and flood protection scheme (mini-polder), and major negative impacts on the local environment and local communities are not expected. A quick assessment will be conduct to develop (a) an environment and social safeguard screening Safeguard Policies Triggered Yes No TBD framework (ESSF) to ensure that adverse impacts will be identified and adequately mitigated and (b) a specific requirement to be include in the bidding document, including a monitoring forms and for monitoring performance of the contractor. The activities may involve small land acquisition and ethnic groups and these will be addressed through the involuntary resettlement and Indigenous peoples policies. Clearance of limited unexploded ordinance (UXO) - left over from Indochina war-era bombing - associated with the investment to be carried out under the project may be necessary. Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X The project will not procure any pesticides. However, providing additional water for irrigation may increase the pesticides and fertilizer usages. The EA assessment will identify the scope and extent of the impact and prepare a practical strategy and/or pest management framework to minimize the use of chemical fertilizers and toxic pesticides at least for the project area. Training will be provided to the farmers. The project will be designed to adopt an Integrated Pest Management (IPM), and promote organic farming, and/or other approach appropriate to the specific areas. An IPM program will be developed and training will be provided to the farmers Extensive experience on organic farming has been well developed in the northeast part of Thailand, thus if possible, the project will promote connection and sharing of knowledge and experience between Thai and Lao practitioners. For the relatively infertile soils, with small amount of animal manures locally available, combining IPM with better understanding of limits to crop production in an Integrated Crop Management (ICM) approach will be considered. The EA assessment will identify the scope and extent of this impact and prepare a detailed plan for implementation of the The pest management framework will incorporate the need for a small field study of soil fertility limitations, particularly the micronutrients, potassium and phosphorus so that a rational and balanced approach to fertilizer use, minimizing wastage and maximizing crop output, can be developed. A guideline for preparation of an action plan (and cost) for each specific site will also be proposed. IPM or promotion of the organic farming, including sharing of experience and networking with Thailand. To maintain consistency and complimentarity of this project with NT2, the data and the pest management plan prepared for the NT2 project will be reviewed and applied as much as possible. Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Ethnic minorities live in Boulapa, Gnommalat, and along some stretches of the Xe Bang Fai river. They are among the targeted project beneficiaries. An Indigenous People Development Framework will be developed. The framework will also be mainstreamed in various project planning and implementation instruments toensure adequate consultation and communication with the local population during the planning and implementation of the project and deliver culturally appropriate development measures. Involuntary Resettlement (OP/BP 4.12) X The project will not involve physical relocation, but may involve minor land acquisition for some capital investment. A resettlement policy framework (RPF) will be developed to ensure that if land acquisition is required, adequate actions will be carried out to minimize and mitigate the negative impacts. The RPF will draw upon the extensive work done in conjunction with Safeguard Policies Triggered Yes No TBD NT2, in particular the detailed social assessments carried out for all downstream villages as well as results of consultations with villagers regarding impacts and preferred mitigation strategies resulting from NT2. The RPF will also draw upon the more recent experience under NT2 in terms of Government capacity and appropriate mechanisms for reaching consensus on the extent and form of compensation.

During project implementation, the Borrower will also prepare Resettlement Action Plans (RAPs) following the agreed resettlement policy framework, once the exact locations of the areas needed for the project are known. Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X

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: 11/15/2007

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 timing1 should be specified in the PAD-stage ISDS. EA/SA assessment*: October - December 2007

[*The activities will include, but should not be limited to, an initial assessment of the potential negative impacts on natural habitats, cultural property, and local communities given due attention to the scope and extent of the impacts of pesticides use, land requirements, and construction work. Quantitative data on type and amount of fertilizer and pesticides used in the area should be collected from concerned agencies and through consultation with local farmers as much as possible. A practical strategy and action plan (and cost) to minimize the use of chemical fertilizers and toxic pesticides (at least for the project area) either through the use of IPM and/or promotion of organic farming should be developed in close consultation with the concerned agencies and local farmers. These will be included in the project design. For mini-polder scheme, potential impact on fish migration will be investigated, and (if possible) various design options to minimize the potential impacts will be identified. Expected outputs will include (i) ESSF, including specific requirement to be included in the bidding document and monitoring of contracts, (ii) an Action plan to minimize the use of pesticides and fertilizer, (iii) Resettlement Policy Frameworks (RPFs), (iv) an Indigenous

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. Peoples Planning Frameworks (IPPFs), and (v) a community consultation procedures, especially with the ethnic people. If land acquisition is anticipated for the first year activities, a simple Resettlement Plans (RPs) and/or Indigenous Peoples Plans (IPPs) will be prepared].

IV. APPROVALS

Signed and submitted by: Task Team Leader: Mr Steven N. Schonberger 11/13/2007 Approved by: Regional Safeguards Coordinator: Mr Panneer Selvam Lakshminarayanan 11/13/2007 Comments: Sector Manager: Mr Rahul Raturi Comments: