Vietnam Inclusive Innovation Project Enterprise Development Ageny

Ministry of Planning and Investment

Enterprise Development Agency

Vietnam Inclusive Innovation Project

ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK

(Final Draft) VIETNAM INCLUSIVE INNOVATION PROJECT – ENTERPRISE DEVELOPMENT AGENY

January, 2013

VIETNAM INCLUSIVE INNOVATION PROJECT – ENTERPRISE DEVELOPMENT AGENY

Table of Contents 1. Introduction 3 1.1 Project description:...... 3 1.2 Project management and personnel...... 5 1.3 Scope of the ESMF...... 6 2. Environmental legislation applicable to the projects 6 3. Project potential impacts and mitigation measures 9 3.1 Project potential impacts...... 9 3.2 Mitigation measures...... 9 4. Institutional Arrangement and Capacity for Environmental Management 9 4.1 Institutional Arrangement...... 9 4.2 Institutional Capacity...... 12 5. Environmental Management Procedures for subprojects under Components 1 and 2 12 5.1 Environmental and Social Screening...... 13 5.2 Preparation of EIA/EPC/EMP...... 15 5.3 Public consultation and disclosure of EIA/EMP/EPC...... 16 5.4 Monitoring...... 17 5.5 Reporting and documentation...... 17 6. Environment Management Procedures for upgrading activities for institutions under Component 3 31 7. Capacity building and Training Plan 32 8. Estimated Cost for ESMF implementation 32 9. Public Consultation and Disclosure of Project ESMF 33 ANNEX 1: ENVIRONMENTAL AND SOCIAL SAFEGUARDS CHECKLIST...... 35 ANNEX 2: ENVIRONMENTAL IMPACT SCREENING FORM...... 38 ANNEX 3: Environmental Management Plan (EMP) Model...... 40 ANNEX 4: CHANCE-FIND PROCEDURES...... 45 ANNEX 5: Environmental Code of Practice (ECOPs)...... 46

ABBREVIATIONS AND ACRONYMS BoP Bottom of Pyramid EDA Enterprise Development Agency (MPI) EPC Environmental Protection Commitment EIA Environmental Impact Assessment EMP Environmental Management Plan ESMF Environment and Social Management Framework FM Financial Management FMM Financial Management Manual GDP Gross Domestic Product GKTP Global Knowledge Transfer and Partnership GM Grant Manual GoV Government of Vietnam GRA Global Research Alliance ICB International Competitive Bidding ICT Information and Communication Technology IE Initial Environment MPI Ministry of Planning and Investment MoST Ministry of Science and Technology NDCs National Development Challenges NDCC National Development Challenges Council MoH Ministry of Health MoNRE Ministry of Natural Resource and Environment NIMM National Institute of Medical Materials NHTM National Hospital of Traditional Medicine NAFOSTED National Foundation for Science and Technology Development PFIs : Participating Financial Institutions PIA Project Implementation Agency PIU Project Implementation Unit PMU Project Management Unit POM Project Operational Manual PSC Project Steering Committee R&D Research and Development RTDI Research and Technology Development Institute SBV State Bank of Vietnam SEDS Social and Economic Development Strategy (2011~2020) SME Small and Medium Enterprise SOEs Statement of Expenditures STI Science and Technology Innovations THM Traditional Herbal Medicine ToR Terms of Reference VAST Vietnam Academy of Science and Technology VIIP Vietnam Inclusive Innovation Project WA Withdrawal Application WB World Bank

1. Introduction The Government of Vietnam has requested World Bank to finance the Vietnam Inclusive Innovation Project (VIIP) (herein refer to as the Project). The Project will focus on development of high-performance and affordable solutions to address the needs of the Base of Pyramid population, including through providing support to SMEs to acquire, adopt, create and use of technology and innovation. The VIIP will comply with applicable Vietnamese environmental regulations and the World Ban k Environmental and Social and Safeguard Policies. By design, the Project will not finance any in novations and technologies which cause significant adverse environmental and social impacts. Po tential impacts, if there is any, would not be irreversible and will be at low and medium scale, mit igable and manageable. The project therefore has been classified as category B and an Environme ntal and Social Management Framework (ESMF) is developed by EDA as part of Project prepara tion to ensure that all the financed subprojects corresponding to innovative technology developm ent/adaptation/creation would be implemented in an environmentally and socially sustainable ma nner. The ESMF will screen all innovation technologies to determine their eligibility regarding environmental and social safeguards. The ESMF includes a procedure to develop and implement relevant measures to mitigate the impacts; specifies institutional arrangement, cost for implementing screening, preventive, mitigation measure and monitoring. The ESMF will be integrated into the Project Operational Manual and deliberately reflected in the subproject application forms to ensure that environmental and social issue will be considered together with other requirement during project implementation.

1.1 Project description:

Project Objectives

The Project Development Objective (PDO) is to adopt, upgrade and develop inclusive inno vations for the benefit of the Base of Pyramid (BoP) population. This will be achieved by stre ngthening Vietnam's capacity to undertake inclusive innovation, including financing developmen t, adaptation, adoption, scaling up and commercialization of inclusive technologies, and improv ing Research and Development Institutions’ (RDIs’) and Small and Medium Enterprises’ (SME s’) technological and innovation capabilities thereby enhancing their competitiveness Project Components The project with an IDA Credit of US$55 million will consist of the following four components: i. Developing Inclusive Technologies ii. Scaling up and Commercialization of Inclusive Technologies iii. Capacity Building and Global Knowledge Transfer iv. Project Management, Monitoring and Evaluation

Component I: Developing Inclusive Technologies. The project will support the development of inclusive technologies that will help address the problems of the BoP population, through competitive grants, based on public calls for proposals and transparent selection criteria. This component will provide support for: (i) developing technological solutions to address a few National Development Challenges (NDCs); (ii) developing, acquiring, adapting and upgrading inclusive technologies by enterprises and grassroot innovators. The project will focus on key priority themes which could have a quick and significant impact for the BoP population and in which Vietnam has a strong tradition, capacity and strategic interest, as reflected in Vietnam’s 2011-2020 Social and Economic Development Strategy (SEDS). The priority themes to be supported under the project are selected by a National Development Challenges Council in Vietnam as: (i) Traditional Herbal Medicine (THM); (ii) Information and Communications Technologies (ICT) Applications (as a tool for the delivery of services to the BoP), and (iii) Agriculture/Aquaculture applications. Other themes may be considered during project implementation by the Project Steering Committee (PSC). While developing actual solutions, the project will also provide ancillary benefits in the strengthening of the capacity (see Component III) of the key participating institutions Component II: Scaling up and Commercialization of Inclusive Technologies. This component will provide loans and matching grants to private enterprises for upgrading, scaling up and commercialization of inclusive technologies. This will include (i) support for scaling-up, commercialization and sustainable production of inclusive technologies dealing with manufacturing of products and services for the BoP; (ii) funding to private sector SMEs 1 for the acquisition, adoption and use of technology and innovations in priority areas with significant potential for technological up-gradation and growth. The general eligibility criteria for subproject selection under Component I and II include: a) existing or new technologies applicable to Vietnam, b) readiness to adoption/adaptation and cost reduction potential; c) provide solutions to address the needs of BoP and are affordable, durable, and environmentally friendly; d) time-bond deliverables with 2-3 years to reach the prototype stage or have the potential to commercialize in Vietnam within 2 years; e) multi-disciplinary applications of new ideas/ technologies; f) collaboration among RDIs, enterprises, local and international partners, researchers/ innovators to ensure quality and commercialization potential. See Annex 2 for details on funding arrangement and subproject selection criteria. Component III: Capacity Building and Global Knowledge Transfer. The project will support capacity building of key Vietnamese national institutions for the sustainable development and delivery of inclusive technologies in the priority areas supported under the project a) enhancing technology, quality and clinical trial of traditional herbal medicine products; b) enhancing innovation grant management capacity; c) enhancing capacity in technology transfer and commercialization, intellectual property rights protection. Component IV: Project Management, Monitoring and Evaluation. The project will provide support to EDA PMU and PIUs in NAFOSTED and PFIs for project management, coordination,

1 SMEs are defined as independent production and business establishments registered in Vietnam wi th a total registered capital of less than VND 10 billion or total employee fewer than 300 people as p er government regulation. Page 6 VIETNAM INCLUSIVE INNOVATION PROJECT – ENTERPRISE DEVELOPMENT AGENY capacity building, oversight, monitoring and evaluation, reporting and audits to enable them to perform its responsibility for project coordination and management.

Project area: Nationwide as the innovation activities could take place anywhere in Vietnam

Type of potential subprojects: a. The potential subprojects of VIIP Project will lie under the following themes Traditional Herbal Medicine (THM)

 Quality enhancement in cultivation, production, manufacturing, distribution and marketing of herbal medicines.

 Technology upgrading for cultivation, production, manufacturing, distribution a nd marketing with GMP standards (entire value chain of herbal medicine develop ment).

b. Information and Communication Technology (ICT)applications

 Enhance the availability, relevance and access to information and contents target ed at the BoP.

 Develop/ design affordable, durable and user friendly ICT devices / applications for the benefits of BoP.

 Develop the appropriate databases for SMEs and farmers.

 Develop the advanced software for the big quantity of databases and support to e asily export the databases

c. Agriculture/ Aquaculture applications

 Develop technology solutions to reduce post harvest losses in agri/ aquaculture p roducts.

 Develop clean energy/ energy efficient solutions for use by villagers and farmers to improve life quality and productivity.

 Improve quality and safety of agri/aquaculture products.

Other themes may be considered during project implementation by the Project Steering Committ ee (PSC). While developing actual solutions, the project will also provide ancillary benefits in th e strengthening of the capacity (see Component III) of the key participating institutions

1.2 Project management and personnel Name of Project: Vietnam Inclusive Innovation Project Name of Donor: The World Bank (WB) / International Development Agency (IDA) Line Agency: Ministry of Planning and Investment (MPI) a) Contact Address: No 6B, Hoang Dieu Street, Quan Thanh ward, Ba Dinh District, Hanoi b) Phone: 04.37349755; Fax: 04.37349755 Project Owner: Enterprise Development Agency a) Contact Address: No 6B, Hoang Dieu Street, Quan Thanh ward, Ba Dinh District, Hanoi b) Tel: 080 43854 / Fax: (84-4) 37342189 Project duration: 5 years: 2013-2017 Total Project Budget: USD $ 55.625 million, of which: a) ODA Funds: USD $ 55.0 million b) Counterpart Funds: 12,5 billion VND, equivalent to USD $ 0.625 million Type of ODA: ODA concessional loan - IDA Credit

1.3 Scope of the ESMF The ESMF will be used to screen and manage potential environmental and social impacts arising from implementation of subprojects under components I and II. It also sets out requirements for activities of upgrading facilities for institutions under component III of VIIP Project.

2. Environmental legislation applicable to the projects 2.1 Vietnamese Environmental Legislations  Law on Environment Protection, No 52/2005/QH11 dated 12 December 2005  Decree No.29/2011/ND-CP dated on April 18, 2011 by Government on provisions on SE A/EIA and environmental protection commitment  Circular No. 26/2011/TT-BTNMT dated on July 18, 2011 by MONRE on details provisio n of some articles of the Government’s Decree No.29/2011/ND-CP dated on April 18, 20 11 on provisions on SEA/EIA and environmental protection commitment  Decree No. 21/2008/ND-CP dated on February 28, 2008 of the Government amending an d supplementing a number of articles of the Government’s Decree No. 80/2006/ND-CP d ated on August 9, 2006  Decree No. 80/2006/ND-CP dated 09 August 2006 by Government, providing details gui delines for implementation of the Law on Environment Protection No. 52/2005/QH11

 Law on water resources No. 1998/QH adopted by Vietnam social republic parliament, ses sion X, third time dated 20/5/1998.  Decree No. 179/1999/ND-CP dated 30/12/1999 of Prime Minister on water resource law implementation.  Decree No. 149/2004/ND-CP dated 27/7/2004 of Prime Minister on Regulations of permi ssion for surveying, exploitation, using water resource, discharge into water source;  Decree No. 38/2011/NĐ-CP dated on May 26, 2011 on revising and supplementing some articles of Decree No. 149/2004/ND-CP;  Decree No. 81/2006/ND-CP dated August 9, 2006 by Government: Decree on sanction of administrative violations in the domain of environmental protection  Decree No. 117/2009/ND-CP dated 31 December 2009 by Government on handling of vi olations in the area of environment protection  Decree No. 73/2010/ND-CP on administrative penalization security and society issues  Decree No. 59/2007/ND-CP dated 09/4/2007 of Prime Minister on Solid waste managem ent;  Circular No. 12/2011/TT-BTNMT on management of hazardous substance  Circular No. 12/2006/TT – BTNMT dated 26/12/2006 of MONRE on guidelines of practi ce condition, document procedures, registration, practice permit, code for hazardous wast e management;  Decision No. 23/2006/QD-BTNMT dated 26/12/2006 of Ministry of Natural resources an d environment on hazardous waste catalogue;  Decree No. 13/2003/ND-CP dated 19/2/2003 of Prime Minister on articles regulating haz ardous waste types and their transportation on road;  Circular No. 02/2009/TT-BTNMT dated 10/03/2009 of Ministry of Natural resources and environment on regulations of waste water receiving capacity of water resource  Law on Vietnam technical regulations No. 68/2006/QH11 dated 29/6/2006.  The Vietnamese Good Agricultural Practice for production of fresh fruit and vegetables (VietGAP) Vietnam National Technical Regulations/Standards, include:  QCVN 05:2009/BTNMT-National technical regulations on ambient air quality;  QCVN 06:2009/BTNMT-National technical regulation on hazardous substances in ambient air;  QCVN 07:2009/BTNMT – National technical regulation on limit of hazardous wastes;

 QCVN 14:2008/BTNMT-National technical regulation on domestic wastewater;  QCVN 19:2009/BTNMT-National technical regulation on industrial emission of dust and inorganic substances.  QCVN 20:2009/BTNMT-National technical regulations on industrial emission of some organic substances.  QCVN 26:2010/BTNMT: Acoustic – Noise from public area and residence. Maximum allowable noise; TCVN 3985:1999: Acoustic – Allowable noise level at working areas.  QCVN 27:2010/BTNMT: National technical regulation on vibration  QCVN 39:2011/BTNMT - National technical regulation on Water Quality for irrigated agriculture  QCVN 40:2011/BTNMT: National Technical Regulation on Industrial Wastewater.  Water quality standards: TCVN 7222 : 2002: General environmental requirements of centralized wastewater treatment plants;  Solid waste standards: TCVN 6705-2000: Non-hazardous waste. Classification; TCVN 6706-2000: Hazardous waste. Classification. If new relevant regulation and standards are issued during the Project implementation, then the new regulations and standard shall be followed.

2.2 World Bank Safeguard Policies and Guidelines  OP 4.01: Environmental Assessment2 The OP 4.01 is triggered as the project may cause some minor adverse environmental and social impacts associated with supported innovative sub-projects under Components I and II, and upgrading activities of laboratories from selective institutions under Component II I.  Public Consultation and Information Disclosure OP4.01 requires during the EA process, that project-affected groups and local nongovernmental organizations (NGOs) be consulted about the project's environmental aspects and takes their views into account. OP 4.01 further requires that such consultations are initiated as early as possible during project preparation and throughout project implementation as necessary to address EA-related issues that affect them. As per the World Bank’s Policy on Disclosure of Information and OP4.01 all Environmental Assessment reports will be disclosed locally in Vietnam and also at the Info shop in Washington DC.  The World Bank Group Environmental, Health & Safety (EHS) General Guidelines

2 For more details about WB guidelines and Policies, please visit Bank websites: http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/EXTPOLICIES/EXTSAFEPOL/0,,menuPK:584441~pagePK:641684 27~piPK:64168435~theSitePK:584435,00.html and http://www.ifc.org/ifcext/sustainability.nsf/Content/EHSGuidelines Page 10 VIETNAM INCLUSIVE INNOVATION PROJECT – ENTERPRISE DEVELOPMENT AGENY

The EHS Guidelines are technical reference documents with general and industry-specifi c examples of Good International Industry Practice (GIIP), as defined in IFC's Performan ce Standard 3 on Pollution Prevention and Abatement. The EHS Guidelines contain the performance levels and measures that are normally acce ptable to The World Bank Group and are generally considered to be achievable in new fa cilities at reasonable costs by existing technology. When host country regulations differ from the levels and measures presented in the EHS Guidelines, projects are expected to achieve whichever is more stringent. If less stringent levels or measures are appropriate in view of specific project circumstances, a full and de tailed justification for any proposed alternatives is needed as part of the site-specific envir onmental assessment. This justification should demonstrate that the choice for any alterna te performance levels is protective of human health and the environment.

3. Project potential impacts and mitigation measures

3.1 Project potential impacts The project will include a number of innovative sub-projects under grant and/or loan under component 1 and 2. In addition, it includes upgrading activities of laboratories from two RDTIs under component 3. Given the exact nature and location of innovative subprojects under component 1 and 2 are not identified prior to appraisal; the relevant impacts associated with these subprojects are mostly unknown. The known impacts may include safety issue and disposal of waste from RDTIs and SMEs during subproject implementation and operation. The impacts relating to upgrading of laboratories under component 3 may include during construction minor, short term impact relating to generation of noise, dust, and waste and safety concern; and during operation the issue of waste management and laboratory safety. The subprojects’ potential impacts, if any, are expected to be localized, varying from small medium scale and can be managed through good design and good management practices during Project implementation and operation. The Project is not expected to have significant adverse impacts and thus has been classified as category B Project

3.2 Mitigation measures As the subprojects are not identified by appraisal, the site-specific impacts of subprojects are not yet known until implementation phase. Nevertheless, during implementation, the mitigation measures for generic impacts associated with the upgrading of laboratories under component 3 e.g. generation of dust, noise, waste water, solid waste, and traffic and labor safety - are described in the Environmental Codes of Practices (ECOPs). These mitigation measures are applied to construction and/or minor construction activities and shall be implemented by the contractor implementation construction phase. The ECOPs will be included into the bidding documents and relevant contract documents.

4. Institutional Arrangement and Capacity for Environmental Management

4.1 Institutional Arrangement The broad framework for project implementation has been worked out between EDA and the World Bank. EDA will be the responsible Government agency for the overall planning, coordination and implementation of the project. A Project Steering Council (PSC) is being formulated as a policy advisory body to MPI for the project. PSC members will be proposed as participation of ministerial leaders. Specific members of PSC will be defined before negotiation. The Director General of EDA will be the Secretary of the PSC. It is expected to meet every six months to provide policy advice and review project progress. PSC would not be involved in the routine implementation of the project. Consequently, the WB proposal designates the entire selection process to NAFOSTED (for all grants) and the selected PFIs (for loans). Agencies like NAFOSTED and Commercial Banks are best suited to the specific implementation roles under the project. Institutional arrangement for Project implementation is demonstrated in the Figure 1 below:

Gov’t of Viet Nam Project Steering World Bank Council Ministry of Planning & (PSC)

Enterprises Development Agency (EDA)

Project Management Unit(PMU)

Component I Component II Component III Component IV EDA/PMU/ NAFOSTED PFIs/NAFOSTED EDA/PMU

Overall mgmt. of grants to Overall mgmt. of grants & Overall R&Ds loan to SMEs implementation TA/training management; Beneficiary selection Proposal selection criteria Study tour criteria Proposal evaluation Coordination; Proposal evaluation process Equipment; M&E process Funds management Funds management R&D NHTM NIMM R&D Enterprises/SMEs Institutions/R&D Institutions VAST Institutions HUST Page 12 VIETNAM INCLUSIVE INNOVATION PROJECT – ENTERPRISE DEVELOPMENT AGENY

Figure 1: Institutional arrangement for Project Implementation The responsibility of key stakeholders for ESMF implementation is listed in the Table 1

Table 1: Institutional arrangement for ESMF implementation

No Organizations Responsibilities 1 Ministry of Investment - Responsible for overall coordination of Project implementation including and Planning (MPI)/ safeguard execution. Project Management Unit - Provide training and technical assistance as necessary to strengthen capacity (PMU) under EDA for environmental staff/consultant under EDA and NAFOSTED. - Update the ESMF as necessary, taking into the lesson learnt during Project implementation. - Allocate staff /consultant responsible for ensuring social and environmental compliance of institute upgrading activities under Component 3. The role of staff/consultant but not limited to the following:  Preparation of environmental documents to ensure the environmental compliance and safety during upgrading process.  Monitoring the implementation of environment and safety compliance by contractor/equipment supplier during upgrading process and by beneficiary institutes during 1st year of operation.  Report on implementation including environmental compliance to WB for review. 2 Project Implementing - Allocate qualified staff and/or consultants to be responsible for ensuring Unit (PIU) under environmental and social safeguard compliance of the subprojects under NAFOSTED Components 1 and 2. The role of the allocated staff and/or consultant include but not limited to the followings:  Screening, reviewing and appraisal of Environmental Safeguard Documents and monitoring reports from subproject owners’ i.e. granted institutions and financed SMEs.  Monitoring the implementation of mitigation measures by subproject owners.  Report on subproject implementation including environmental compliance to WB for review. 3 Participating Financial - Rely on NAFOSTED system to ensure the social and environmental Institution (PFIs) compliance of sub-loans under Component 2 4 Subproject owners under - To carry out measures to mitigate impacts as specified in approved Components 1 &2 environmental safeguard documents (EIA/EPC/EMP) - Internal monitoring and reporting the sub-project implementation, including environmental safeguard compliance to PIU for reviewing 5 Contractors and - Contractor and equipment supplier: carry out mitigation measures during equipment suppliers, implementation beneficiary institutes - Beneficiary institutes: carry out mitigation measures and environmental under Component 3 compliance during operation 6 Local authorities - Approving Environmental Report (EIA/EPC) and carry out environmental including DONRE monitoring as mandated by GoV regulations

7 World Bank - Provide guidance to PMU, PIU and PFIs in project implementation including ESMF execution Note: sub-project owner here refer to as granted/financed institution and enterprises under component 1 and 2

4.2 Institutional Capacity The MPI/EDA may have some previous experience in carry out WB financed projects. However, the staffs that had experience on safeguard management of these previous projects may not be available to be assigned as Staff Officer for VIIP project. NAFOSTED may allocate qualified staff who understands well GoV environmental regulation under its relevant Science Committee. However, NAFOSTED has never been carried out WB funded project and therefore does not have experience of the World Bank’s safeguard policies. The current capacity of NAFOSTED and EDA regarding ESMF implementation, therefore, is considered to be limited. The Project will require the allocation of qualified environmental staff under EDA and NAFOSTED to oversee environment and social safeguard issues and necessary training will be carried out to strengthen capacity of EDA and NAFOSTED in implementing safeguard requirements

5. Environmental Management Procedures for subprojects under Components 1 and 2 This section describes the actions to be followed by other actors – as specified in section 3 – to implement World Bank safeguard policies and GoV environmental requirements at each stage of subproject implementation and preparation. These include: - Environmental and social screening - Preparation of Environment Assessment Report (EIA/EMP/EPC). - Public Consultation and Disclosure - Monitoring - Reporting The Environmental Management Procedures described in details in section 5.1 -5.5. In addition, the Environmental Management for subproject under components 1 and 2 is summarized in Table 3.

5.1 Environmental and Social Screening 5.1.1 Subproject classification criteria The purpose of screening is to determine the subproject eligibility for WB funding and to identify subproject potential impacts and consequently the appropriate instrument to manage those impacts. By design, the VIIP Project only triggers the Bank safeguard policies OP/BP 4.01 Environment Assessment. Any subproject triggering other safeguard policies will be excluded from Bank financing. In addition, the subprojects which cause significant impacts will not be eligible for Bank financing. According to the OP/BP 4.01, the WB classifies the projects based on the extent and potential severity of the impacts. A project which causes significant adverse environmental impacts that are diverse, irreversible and unprecedented is categorized as A and for this project, a full environmental assessment (EA) needed to be prepared. Category B projects are those with less significant adverse impacts which are site-specific, few if any of them are irreversible; and in most cases mitigation measures can be designed more readily than for Category A projects. Category B project will require preparation of Environmental Management Plan (EMP) or an EIA with scope narrower than that of category A The project that causes minimal or no adverse impacts is categorized as C and beyond screening, no environmental assessment is required. GoV legal documents, i.e. Decree No29/2011/ND-CP, use a list of Project type to classify projects. i. The projects belong to the list in Annex II of Decree No29 are subjected to Environmental Impact Assessment (EIA) elaboration. In addition, for those projects belonging to Annex III, which cause potential high adverse impacts, an EIA report needs to be prepared and approved by MONRE instead of local authorities. ii. The subprojects/activities subject to prepare and register for an Environmental Protection Commitment (EPC) include: o Investment projects having nature, scale and capacity which are not listed or under th e level prescribed in the list in the Annex II of this Decree o Activities of production, business, or services which are not required to formulate inv estment project but shall generate waste during its implementation The differences in GoV and WB category approaches may lead to different requirements on potential subprojects. To address any potential the inconsistency and to ensure that the selection of sub-projects will strictly follow the GoV regulation, the WB safeguard policies and project design, the subprojects/activities under VIIP Project Support is classified in 5 types as follows:

- IE-type (in-eligible type): subprojects that are ineligible for financing include: a) those subprojects which cause significant, diverse, irreversible and unprecedented environmental impacts corresponding to WB category A classification impacts b) those belong to Annex III of Decree No29/2011/ND-CP - EIA-type: the subprojects that belong to the list in Annex II of Decree No29/2011/ND-CP. They are subprojects/activities with impacts that are site-specific, not irreversible, and can be readily identified and standard preventative and/or remedial measures can be designed more readily.  It is required that an EIA for each sub-project be prepared and approved by related prov incial people’s committee. An EMP that meets World Bank’s requirements will be integr ated into the EIA. The content of an EMP can be found in Annex 3. - EPC-type: those subprojects/activities subjected to EPC preparation and registration as regulated by Decree No29. It is required that an EPC for each sub-project be prepared and approved by related distr ict/commune-level people’s committee. An EMP that meets WB’s requirements will be i ncorporated into the EPC. - EMP-type: the subprojects are classified neither in EIA-type nor in EPC-type but they may generate dust, noise, solid waste and waste water and labor safety issues during subproject cycle; for example research subproject/activity. It is required an EMP in accordance with World Bank’s safeguard policies. The EMP wi ll be approved by PIU under NAFOSTED. - C-type: the project that causes minimal or no adverse environmental impact It requires no further environmental assessment 5.1.2 First level: Safeguard policies screening For each subproject, PIU environmental staff/consultant will refer to the project proposal and to fill in an “ENVIRONMENTAL AND SOCIAL SAFEGUARDS CHECKLIST” as introduced in Annex 1. By design, the Project will not trigger any Bank safeguard policies except OP 4.01 – Environmental Assessment and not finance any technology or activity which causes significant adverse, irreversible impacts. In addition, to avoid any impacts on the misuse of pesticide to human health and environment, by design, the Project will not support the procurement of pesticide and pesticide equipment application. The Project will not finance any activity that may lead to a substantial increase in use of pesticides and subsequent increase in health and environmental risk. The project will also exclude any activity/subproject that may maintain or expand present pest management practices

VIETNAM INCLUSIVE INNOVATION PROJECT – ENTERPRISE DEVELOPMENT AGENY that are unstable, not based on an integrated pest management (IPM) approach and/or pose significant health and environmental risk. Eligibility:  If the subprojects only bring about positive impacts and/or causing no adverse impact, it is appraised as environmental eligible and beyond screening, no environmental requirements is needed.  If sub-projects implementation triggers any of the Bank safeguard policies beyond OP4.01 Environmental Assessment, it is considered as ineligible for financing  If the sub-project implementation triggers OP/BP 4.01, the 2nd level screening is required 5.1.3 Second-level: Impacts screening Base on the nature, scale, extent of subprojects/activities and their impacts, the NAFOSTED envi ronment officer will classify them into EIA-type, EPC-type and EMP-type or C-type as describe d in section 5.1.1 above. The screening result should be recorded the Environmental Screening F orm as attached in Annex 2. The NAFOSTED PIU environment officer must send to the WB the list of propose sub-projects and screening result at two screening levels as specified in Annex 1 and Annex 2. The WB may randomly screen about 5-10% of total proposed sub-projects to evaluate the screening process. If the WB does not satisfy with capacity of PIU in screening process, the EDA shall provide additio nal strengthening measures to enhance capacity.

5.2 Preparation of EIA/EPC/EMP Subproject owners will prepare an EIA/ EPC/EMP for each subproject at preparation phase, i.e. i n parallel with the preparation of Economic-Technical Report (ETR) or Feasibility Study (FS) an d conduct public consultations and information disclosure as guided in section 5.3. Specifically: - EPC-type subprojects: The subproject owners will develop one EPC and get approval from ap propriate local authorities. - EIA-type subprojects: The subproject owners will prepare TOR for the EIA report and send to PIU under NAFOSTED for prior review. Upon clearance, subproject owner should proceed to hi re a consultant to prepare the EIA report. The draft EIA report will be reviewed by NAFOSTED. The WB may randomly prior review up to 30 % of draft EIAs to ensure that the potential impacts are considered and adequately addressed. After the draft EIA is cleared by NAFOSTED and/or WB, the sub-project owner will get it approved from appropriate local authority. The EIA/EPC content, format and approval process is regulated in Decree No 29/2011/ND-C P and CirNo 26/2011/MONRE. - EMP-type subproject: The subproject owner will develop one EMP to address potential adverse impacts. The content of the EMP can be referred to in Annex 3 - For subproject which have a recently approved EIA or EPC

For subproject which an EIA and EPC has already been approved by GoV authorities, the NAFOSTED environment staff/consultant will make a due diligence to assess the adequacy of these reports. If any insufficiency is identified, the subproject owner will have to prepare one Environmental Management Plan (EMP) with supplementary measures, subjected to NAFOSTED prior review and approval. A commitment of MOU signed between subproject owners and NAFOSTED PIU in allocating resources for implementing EMP is the condition for grant/loan disbursement. The content of EMP can be found in ANNEX 3 Note: Project does not support any new construction work and the safeguard policy on Physical Cultural Resources (OP4.11) is not triggered. However, during subproject implementation, chance-find procedures shall be included into EA documents and contracts to guide the sub-project owner and contractors on necessary step to be taken in case of finding archeological artifacts. The chance-find procedures are described in ANNEX 4.

5.3 Public consultation and disclosure of EIA/EMP/EPC

Public consultation

During preparation of EIA/EMP/EPC, the subproject owners will conduct public consultation to ensure that potential affected people understand subproject and their concern will be adequately addressed via mitigation measures during subproject design, implementation and operation.

Concretely, during EIA preparation, the sub-project owner will consult commune-level People Committee and representatives of residential community and organization which is directly affected by the project. During EMP/EPC preparation, the subprojects owners will consult with the potential affected people. The public consultation can be either in the form of questionnaire or community meeting. The subproject owner will present potential affected people negative/positive impacts of the subproject and proposed mitigation measures and monitoring process as proposed in draft EIA/EMP/EPC and take their view into account.

The public consultation activities - including date, location, and publication form, comment from consulted people and response from subproject owner - shall be documented in the final EIA/EMP/EPC report.

Public consultation is required for enterprise but not for research institute because the characteristics of research activities are unique and it is most likely that affected household regarding to such is identified.

Disclosure of EA documents During sub-project preparation, all EIA/ EMP/ EPC for subprojects must be disclosed in a timely manner, in an accessible place, in a form and language understandable to stakeholders. In addition, a package including EIA/EMP/EPC final reports, approval documents and any other environmental certificates will be disclosed at WB library (VDIC) in Hanoi before loan/grant agreement.

5.4 Monitoring During subproject/activity implementation, the mitigation measures outlined in EIA/EMP/EPC should be monitored to ensure that they are implemented in a timely and adequately. In some case, it is necessary to take additional measures to ensure that all arising impacts are adequately addressed. Internal monitoring Each subproject owner should carry out internal monitoring during implementation. For EPC- type project, the internal monitoring by subproject own staff is sufficient. For EIA-type project, the subproject owner may use its own staff for monitoring if it is certified as capable by PIU. In most cases, it needs to hire the consultant to carry out internal monitoring. In this case, TOR for consultant shall be prepared by sub-project owner and approved by NAFOSTED. PIU monitoring In addition to internal monitoring, the PIU environmental staff/consultant will monitor the environmental and social safeguard compliance of subprojects on periodic basis as committed in the EIA documents. Generally, it will be twice per year for EIA-type sub-project and one per year for EPC-type subproject. The monitoring shall be conducted during implementation and 1st year of sub-project operation phase.

5.5 Reporting and documentation Reporting: The subproject owner will prepare periodic reports on implementation of mitigation measures and internal monitoring as scheduled in EIA/EMP/EPC reports. These reports shall be sent to PIU under NAFOSTED prior to scheduled date of external monitoring by PIU. The PIU will provide the bi-annual report on project implementation and safeguard compliance and send them to WB for reviewing. Also, the PIU shall send the report to PMU for documentation.

Documentation It is the responsibility of the sub-project owners to obtain any necessary licenses or permits which is required approval of any Vietnamese environmental authorities during project implementation and operation phases. PIU and the sub-project owners are responsible for record and keep all safeguard documents including Environmental and social safeguard checklist, Environmental Impact Screening Form, confirmation on Public Disclosure, Licenses and permits, environmental monitoring report from each subproject investment.

Table 3: Summarization of Environmental Management Procedures for subproject under Component 1 and 2

Phase Subproject owners NAFOSTED -PIU WB

Subproject Step1: Screening identification 1.1 Prepare basic information and 1.1 Screening 1.1 Review on random basis and submit to PIU under NAFOSTED for - Screening to exclude subprojects confirm the appropriateness of screening. triggering Bank safeguard policies other NAFOSTED reviewing than OP/BP 4.01. - Screen to categorize project as IE-type, EIA-type, EPC-type or C-type - Submit project information and screening results to WB for reviewing

1.2. If the project is determined as 1.2 Assess the report on borrower 1.2 Review on random basis to EIA-type, prepare and submit to institutional capacity to carry out ensure the acceptability of NAFOSTED the report on its safeguard requirement. institutional capacity of institutional capacity to carry out subproject owner environmental safeguard

1.2 Require the sub-project owner to prepare the EA documents (EIA/EPC/EMP) corresponding to the category of each subproject. - For EIA subproject, require the subproject owner to prepare the EIA report. - For EPC-type subproject, require the subproject owner to prepare the EPC

- For EMP-type subproject, require the subproject owner to prepare an EMP - For C-type subproject, no further environmental process is required - If the subproject owner present a recent approved EIA/EPC, conduct an environmental due diligence and request the sub-borrower to prepare an EMP as necessary

Sub-project Step 2: EA preparation preparation 2.1 For EIA-type subproject, prepare 2.1 Review the TOR submitted by 2.1 Random on random basis the TOR for EIA preparation and send subproject owner. Send the TOR for WB the TOR for EIA-subjected to PIU for review for random review project ensure that it is - Clear the content of TOR acceptable

2.2 Prepare EIA/EMP/EPC as required by GoV and WB regulations

Step 3: Public consultation and disclosure, approval of EA report

3.1 Conduct public consultation with potential affected people about the content of EIA/EMP/EPC 3.2 For EIA-type project, also consult with commune/ward authorities 3.3 Incorporate inputs from public consultation into the final EIA/EPC/EMP report 3.4 Disclose the EIA/EMP/EPC report at public place

Step 4: Finalization and Approval of EA report

4.1 Finalize EIA/EPC/EMP report, 4.1 Review the EIA/EMP/EPC, send to 4.1 Review on random basis to submit to NAFOSTED for reviewing WB for random review ensure that it is acceptability

WB may review the first two reports of each type: EIA, EPC, EMP

4.2 4.2 4.2 Disclose the approval - For subproject needed to prepare - Approve the EMP package (approved report and additional EMP, send the EMP to document) in Vietnam NAFOSTED for approval Development Information - Send the safeguard approval package to Center (VDIC) in Hanoi - For EIA/EPC type: send the EIA/EPC, WB for recording acceptable by NAFOSTED to appropriate authorities for approval. Send the approval package to NAFOSTED.

Sub-project Step 5: Monitoring and Reporting Implementation - Implement the mitigation measures - Carry out monitoring on the - Review to ensure the via contractors implementation of safeguard acceptability of the - Conduct internal monitoring on requirements and internal monitoring environmental monitoring contractor implementation of safeguard - Prepare the environmental monitoring report requirement. Frequency: regular basis- report and send to WB for review - Carry out monitoring on daily. random basis during annual - Send the biannually safeguard supervision mission monitoring report to NAFOSTED

6. Environment Management Procedures for upgrading activities for institutions under Component 3 Preparation During preparation period, the PMU staff/consultant under EDA will to prepare an EMP to address any potential impacts associated with the upgrading activities of institutions under component 3. The content of EMP shall include brief description of upgrading activity, potential impacts and relevant mitigation measures, monitoring plan, public consultation, institutional arrangement and cost for environmental safeguard implementation. EMP template can be found in ANNEX 3. The content of draft EMP must be consulted and agreed with beneficiary institutions. The mitigation measures as specified in the EMP generally should include those conducted in during design, implementation and operation phases. The mitigation measures during detail design shall be carried out by PMU/design consultant. The mitigation measures during rehabilitation period shall be carried out by contractor while the beneficiary institutions shall be responsible for carrying out mitigation measures during operation phase. As the minor civil work/rehabilitation activities might cause impacts and nuisance to nearby surroundings, generation of dust, noise, waste water, solid waste, traffic and labor safety. These impacts needed to be avoid and mitigated through good construction practices. The mitigation measures for impacts during minor construction/rehabilitation period are included in the ECOPs (see ANNEX 5). They shall be carried out by contractor during rehabilitation/construction period. The PMU shall include ECOPs into the bidding and contract documents. The PMU shall send the draft EMP to WB for prior review and then approve it. The final approved EMP will be sent to WB for disclosed in WB library (VDIC). In addition, the approved EMP will be disclosed at beneficiary institutions. Note: Project does not support any new construction work and the safeguard policy on Physical Cultural Resources (OP4.11) is not triggered. However, chance-find procedures shall be included rehabilitation contracts to guide the contractors on necessary step to be taken in case of finding archeological artifacts during upgrading of selective institutions. The chance-find procedures are described in ANNEX 4.

31 VIETNAM INCLUSIVE INNOVATION PROJECT – ENTERPRISE DEVELOPMENT AGENY

Implementation During implementation, the PMU environmental officer/consultant shall conduct monitoring the contractor and equipment suppliers in implementing mitigation measures as specified in the ECOPs. The PMU shall report on the safeguard implementation as a part of Progress Report. Operation During the 1st year of operation, the PMU shall monitor the implementation of environmental compliance by beneficiary institutions. The monitor will be carried out twice a year when applicable and the PMU shall include the monitoring result in the Progress Report to WB for review.

7. Capacity building and Training Plan Based on actual demands, a capacity building and training program for relevant agencies is established as shown in the table below. The cost for capacity building program is included in cost for safeguard implementation. Table 4: Proposed programs on capacity building on environmental management

Training content Objects Training time Responsibility Budget

Training on the EDAPMU During PMU in A part of safeguard Safeguard staff; subproject’s coordination environmental implementation PIU staff preparation stage with consultant Environmental contract Subproject Consultant owners Beneficiary institutions

8. Estimated Cost for ESMF implementation The estimated cost for ESMF implementation is a part of Project cost and is provided in Table 5.

Table 5: Estimated cost for safeguard implementation

Total Description Time Unit cost (USD) NAFOSTED/PIU PIU - Carry out environmental management for subprojects environmental under Component 1 & 2 including staff/consultant + Environmental screening + Review to ensure the adequacy of safeguard document 5 years 69915 i.e. EIA/EPC/EMP prior to submission + Monitoring implementation of safeguard compliance by subproject owners under component 1&2.

EDA/PMU

- Capacity building related to safeguard implementation Local for PIU, PMU and beneficiaries staff. Environment - Preparation of EMP for institutions upgrading under safeguard 5 years 7000 component 3 specialist in PMU - Monitoring safeguard compliance by contractors and beneficiary institutions under component 3

TOTAL EXPENSES 78,915

9. Public Consultation and Disclosure of Project ESMF During preparation of ESMF, meaningful consultations have been conducted with key stakeholders of VIIP project including NAFOSTED, one potential PFI and EDA some institutions i.e. Vietnam Academy of Science and Technology (VAST), National Institute of Medical Materials (NIMM), National Hospital of Traditional Medicine (NHTM). Detailed of the public consultation is shown in Table 6. The concerns/feedbacks from stakeholders have been incorporated into the final ESMF. At Project level, the final draft of the ESMF has been disclosed locally in NAFOSTED, EDA and one potential PFI Offices and at Vietnam Development Information Center (VDIC) in Vietnamese language and in the WB InfoShop in Washington DC in English language prior to the appraisal mission.

Table 6: Public consultation and information disclosure of the ESMF

Objective Participants Time Consultation results The first round Dissemination of project Representatives of During number of meeting with Discussion information; Collection of EDA, NAFOSTED, potential beneficiaries and environmental baseline NHTM, NIMM, workshop Saturday 3/10/2012 information; identification VAST, HUST at Workshop Woman Center of potential environmental Hotel, Hanoi issues during the project implementation Dissemination of the Representatives of Thursday 01/11/2012 at Agreement of the content content first draft ESMF EDA, NAFOSTED, workshop for comment on FS NHTM, NIMM, including ESMF preparation in VAST, HUST Kim Boi Hotel, Hoa Binh Dissemination of the Representatives of During number of Meetings Meeting note and Aide content first draft ESMF EDA, NAFOSTED, with World Bank pre-appraisal Memoir NHTM, NIMM, mission from November 5-15, VAST, HUST 2012 The second round Disclosure of the second Public on website uploaded your news plus Public awareness draft ESMF attached file to bussiness.gov.vn with follow link: http://www.business.gov.v n/newsevents.aspx?id=13068

Discussion about the Representatives of Workshop for reviewing final Representatives of content second draft EDA, NAFOSTED, draft FS including ESMF in participants agree with ESMF NHTM, NIMM, Yen Bai, Ba Vi, Hanoi, dated content of second draft VAST, HUST 12/12/2012-13/12/2012 ESMF. Disclosure Final version EDA, NAFOSTED, Via email dated 03/12/2013 Agreement of the content. of ESMF Officially written opinions specific in reply email

ANNEXES

ANNEX 1: ENVIRONMENTAL AND SOCIAL SAFEGUARDS CHECKLIST With all subprojects/activities under Component 1, 2 and 3 under VIIP, the EDA/NAFOSTED environmental staff/consultant will do screening to determine the eligibility of the subproject. The PMU/PIU environmental staff and/or consultant will complete checklist. By indicating “yes” to any safeguard policy other than Environment Assessment – OP4.01, the project is considered as not eligible Note: if any policy is triggered by the sub-project, the project’s owner must indicate the severity of the potential impact as instructed in the Table below. If not, the sub-project will be considered as environmentally non-eligible. Note: If any policy is triggered by the subproject, the project’s owner must indicate the severity of the potential impact as instructed in the Table below. If not, the subproject will be considered as safeguard ineligible.

Subproject Name:

SAFEGUARD Identification of Possible Please check one box: Provide your POLICY Safeguard issue(s) response here, if applicable: Environmental Does the project have the No Yes Assessment potential for adverse If yes, indicate here the environmental or social risks potential severity of the and impacts in its area of impact and proposed influence? project design elements that will help prevent potential adverse impacts. Natural The World Bank does not No Yes Habitats finance projects that degrade If yes, indicate here either or convert critical habitats proposed alternative site(s) (protected areas or sites or if no alternative sites important for biodiversity). are available, proposed Do the project activities have project design elements the potential to cause that will help prevent significant conversion (loss) potential adverse impacts. or degradation of non-critical natural habitats? (The loss can occur either directly (e.g. construction activities) or indirectly (through human activities induced by the project). Pest Are any pesticides or No Yes Management procurement of pesticide If yes, indicate the equipment being financed by proposed project design the project? elements (Integrated Pest Does the project introduce Management) that will new pest management No help prevent potential practices or expand or alter adverse impacts. If yes, existing pest management indicate here proposed practices? project design elements

Are there other project No that will help prevent activities that may lead to potential adverse impacts substantially increased pesticide use? Does the project include the No manufacture or disposal of environmentally significant quantities of pest control products? Forests Does the project have the No Yes potential to have an impact on If yes, indicate the the health and quality of potential severity of the forests or the rights and impact and proposed welfare of people and their project design elements level of dependence upon or that will help prevent interaction with forests? potential adverse impacts. Does the project aim to bring No Yes about changes in the If yes, indicate whether the management, protection, or management will ensure utilization of natural forests sustainability of the forest or plantations? resources. Safety of Dams Are any project activities No related to the construction of a large-scale dam? Cultural Would project activities No Yes Property likely adversely affect If yes, indicate the physical cultural resources? potential severity of the These could be temples, impact and proposed burial sites, or archeological project design elements sites. that will help prevent potential adverse impacts. Projects in Are project activities being If yes, please contact the International conducted in international No World Bank for further Waterways waterways? information. Projects in Will the project be working If yes, please contact the Disputed Areas where there are different No World Bank for further countries that are claimants to information. disputed areas? Involuntary Is there any possibility that No Yes Resettlement project activities would If yes, indicate the displace persons potential severity of the involuntarily? Please note impact and describe that displacement includes project activities that loss of land or other assets would assist displaced caused by: (i) relocation or persons in their efforts to loss of shelter; (ii) loss access improve or at least restore to assets in protected areas their standards of living. resulting in adverse impacts on livelihoods; (iii) loss of income sources or means of livelihood, whether or not the affected people must move to another location. If land is acquired and no person is involuntarily displaced, the

policy is not triggered.

Indigenous Would the project likely have No Yes Peoples (ethnic negative impacts on ethnic If yes, indicate the severity minorities) minorities or have the of the potential impact potential to bring positive (positive or negative) and benefits to ethnic minorities? proposed project design elements that will help prevent potential adverse impacts or ensure appropriate access to positive benefits.

Date Screen by Verified by (Full name and signature) (Sign and stamp by the PMU/PIU director)

ANNEX 2: ENVIRONMENTAL IMPACT SCREENING FORM After referring to each sub-project proposal and their relevant “Environmental and Social Safeguards check list, the PMU/PIU (please specify) and its consultant is required to fill in the Environmental Impact Screening Form to determine the magnitude of positive and negative impacts that each subproject can bring about and thus to decide if the subproject is environmentally eligible.

Sub-Project Name:

1. Determination of Subproject Type EIA-type  EPC-type  EMP-type  C-type 

2. Reason for the subproject type characterization Assessment of Potential impact caused by sub-project implementation: the magnitude of potential impact and the ready level for designing the mitigation measures

Socio-environmental issue Yes No comment Will the implementation and associated activities cause: (Instruction: Where possible, give quantitative information in “comments” column when the answer is “yes” for the case that no mitigation measures applied FIRTST-PMU can add questions at the end of this table and give the answer if additional issues are identified. 1. Clearance of trees at construction sites, camps, or storage areas? 2. Water pollution (increased turbidity due to construction wastes or construction materials, fuels from construction sites come into water bodies), or localized flooding due to wastewater from construction site? 3. Noise, dusts and vibrations generated from construction plants (e.g. noise from trucks) and construction activities (e.g. pilling, concrete mixing etc)? 4. Generation of waste? 5. Landscape degradation at site exploited for filling materials? 6. Increased land sliding potentials at excavated sites? 7. Traffic disturbance due to the transportation and temporary loading of construction materials, and/or construction activities? 8. Damages to crops, existing infrastructure?

Socio-environmental issue Yes No comment 9. Interruption of existing public services (irrigation, power supply, telecommunication phone line etc)? 10. Safety risks to local community, particularly children, and workers? 11. Limit access to water by local water users, or limit access to other public services? 12. Graves, explosive materials, cultural/ archeological objects are exposed? 13. Erosion during operation phase of rehabilitated irrigation works? 14. Disrupt access to households? 15.etc

3. Conclusions Is the subproject environmentally eligible? Yes  No 

4. If there is any approved safeguard documents was obtained? Yes  No  If yes, please specify and provide the date of the obtained safeguard documents.

5. What further Environmental Assessment report should be prepared and getting approval by the subproject owner?

EIA-type  EPC-type  EMP-type  None 

Date Verified and Screened by Full name and signature of Staff/Consultant

ANNEX 3: Environmental Management Plan (EMP) Model FOR Inclusive Innovation Sub-Project

1. Sub-Project description Provide pertinent background for parties who may conduct the SEMP, whether they are government agencies/sponsors, consultants or NGOs. Include a brief description of the major components of the proposed project, a statement about its need and objectives, the implementing agency, a brief history of the project (including alternatives considered), its current status and timetable, and the identities/natures of any associated projects. A summary description of the environmental setting should be provided.

2. Applicable Environmental Legislations

Identify laws, regulations and guidelines likely to govern the conduct of the assessment or specify the content of its report. They may include any or all of the following:

 World Bank Operational Policy; i.e "Environmental Assessment; Public Consultation and Information Disclosure and The World Bank’s Environmental, Health and Safety

 National laws and/or regulations on environmental reviews and impact assessments;

 Regional, provincial or communal environmental assessment regulations; and

 EA regulations of any other financing organizations involved in the project.

Identify design or operating standards that project components must meet to be in compliance with environmental safeguards. This will include, for example, air emission standards and occupational health and safety requirements.

3. Overview of Adverse Impacts and Mitigate Measures Summary of impacts: Predicted adverse environmental and social impacts (and any uncertainties about their effects) for which mitigation is necessary should be identified and summarized.

Description of mitigation measures: Each measure should be briefly described in relation to the impact(s) and conditions under which it is required. These should be accompanied by, or referenced to, designs, development activities (including equipment descriptions), operating procedures, and implementation responsibilities. Proposed mitigation measures to facilitate public consultation should be clearly described and justified.

The presentation of adverse impacts and mitigation measures can be as follows:

Activities Environmental Mitigating Responsibility Date Measures Impacts/Issue (Start/End)

Design Phase

Sub-Project implementation phase

Sub-Project Operation phase

4. Institutional Arrangements Responsibilities for mitigation, monitoring, and supervision should be defined along with arrangements for information flow, especially for coordination between agencies responsible for mitigation. This is especially important for projects requiring cross-sectoral/Institutional integration. In particular, the EMP specifies who is responsible for undertaking the mitigating and monitoring measures, e.g., for enforcement of remedial actions, monitoring of implementation, training, financing, and reporting. Institutional arrangements should also be crafted to maintain support for agreed enforcement measures for environmental protection. Where necessary, the EMP should propose strengthening the relevant agencies through such actions as: establishment of appropriate organizational arrangements; appointment of key staff and consultants; and, arrangements for counterpart funding and on-lending.

4.1 Organizations The organizations in charge of implementation and supervision of the mitigation and monitoring measures can be described via a chart. For example:

MPI Vietnam The World Bank

PMU Under EDA

Equipment suppliers and contractors (where Sub projects applicable) PIU/NAFOSTED

Department of Natural Resources & Environment (DONRE)

4.2 Responsibilities These stakeholders may be involved in the sub-project environmental management. The responsibilities of the relevant stakes holders in each sub-project should be represented as bellows

No Organization Responsibilities 1 Subproject owner 2 Design Engineer 3 PIU/PMU 4 Contractors/Equipment Suppliers 5 Consultant 6 Environmental Consultant 7 Etc

5. Monitoring and Reporting

5.1 Description of monitoring program (where applicable) The EMP identifies monitoring objectives and specifies the type of monitoring required; it also describes performance indicators which provide linkages between impacts and mitigation measures identified in the EA report, parameters to be measured, methods to be used, sampling location and frequency of measurements, detection limits (as appropriate) and definition of thresholds to signal the need for corrective actions. Monitoring and supervision arrangements should be agreed by the sub-project owner and PIU/PMU the Bank and the borrower to: ensure timely detection of conditions requiring remedial measures in keeping with good practice; furnish information and the progress and results of mitigation and institutional strengthening measures; and, assess compliance with national and Bank environmental safeguard policies.

MONITORING PLAN

What Where How When Standard Monitoring Responsibility Report to / Time parameter applied Cost frequency is the is the is the (Start/End is to be parameter parameter parameter to What is the Date) monitore? to be to be be cost of monitore? monitored/ monitored- equipment or type of frequency of contractor monitoring measurement charges to equipment? or continuous perform monitoring

5.2 Supervision of Contingency Plan Preparation, training activities (where applicable) For example: contingency plan against fire risk

5.3 Environmental Compliance Framework For example Compliance framework for equipment suppliers

6. Capacity Building/Training Plan (where applicable)

Organizer Course Participants Frequency Duration Content Budget

7 Budget Cost estimates: These should be specified for both the initial investment and recurring expenses for implementing all measures defined in the EMP, integrated into the total project costs and factored into loan negotiations. It is important to capture all costs – including administrative, design and consultancy, and operational and maintenance costs – resulting from meeting required standards or modifying project design.

8. Consultation and Public Disclosure Presenting the results of Consultation and Public Disclosure

9. Other Information Include here lists of data sources, project background reports and studies, relevant publications, and other items to which the consultant's attention should be directed.

ANNEX 4: CHANCE-FIND PROCEDURES

Specific procedures are to be applied in case of archeological artifact finds. The diagram below identifies steps to be taken. The sub-project owner will be responsible for the overall coordination and reporting. The chance find procedures will be included in all contracts and sub-project owner and contractors will be responsible to implement them.

Archeological artifacts found during Temporarily stop implementation, sub-project implementation and install the protection fence, immediately contact the sub-project (Contractor) owner

All parties record the scene

Subproject owner report in writing to Department of Culture, Implement next steps under Information and Tourism (DCIT) guidance of DCIT Subproject owner shall also report to NAFOSTED/EDA for information

ANNEX 5: Environmental Code of Practice (ECOPs)

ISSUES/RISKS MITIGATION MEASURE

1. Dust generation/  The Contractor implement dust control measures to ensure that the generation of dust is minimized and is no Air pollution t perceived as a nuisance by local residents, maintain a safe working environment, such as: - water dusty roads and construction sites; - covering of material stockpiles; - Material loads covered and secured during transportation to prevent the scattering of soil, sand, materials, or dust; - Exposed soil and material stockpiles shall be protected against wind erosion. 2. Noise and vibrati  All vehicles must have appropriate “Certificate of conformity from inspection of quality, technical safety and on environmental protection” following Decision No. 35/2005/QD-BGTVT; to avoid exceeding noise emission from poorly maintained machines. 3. Water pollution  Portable or constructed toilets must be provided on site for construction workers. Wastewater from toilets as well as kitchens, showers, sinks, etc. shall be discharged into a conservancy tank for removal from the site or discharged into municipal sewerage systems; there should be no direct discharges to any water body.  Wastewater over permissible values set by relevant Vietnam technical standards/regulations must be collecte d in a conservancy tank and removed from site by licensed waste collectors.  At completion of construction works, water collection tanks and septic tanks shall be covered and effectively sealed off.  Do not allow waste, litter, oils or foreign materials into water sources  Do not wash cars or machinery in natural water sources

 A comprehensive listing of sources and location of wastewater discharge will be prepared and maintained  Appropriate operating procedure will be undertaken for minimization of wastewater (such as neutralizing pre disposal treatment, etc.) 4. Drainage and sed  The Contractor shall follow the detailed drainage design included in the construction plans, to ensure drainag imentation e system is always maintained cleared of mud and other obstructions.  Areas of the site not disturbed by construction activities shall be maintained in their existing conditions. 5. Solid waste  At all places of work, the Contractor shall provide litter bins, containers and refuse collection facilities.  Solid waste may be temporarily stored on site in a designated area approved by the Construction Supervision Consultant and relevant local authorities prior to collection and disposal.  Waste storage containers shall be covered, tip-proof, weatherproof and scavenger proof.  No burning, on-site burying or dumping of solid waste shall occur.  Recyclable materials such as wooden plates for trench works, steel, scaffolding material, site holding, packa ging material, etc shall be collected and separated on-site from other waste sources for reuse, for use as fill, o r for sale.  If not removed off site, solid waste or construction debris shall be disposed of only at sites identified and app roved by the Construction Supervision Consultant and included in the solid waste plan. Under no circumstan ces shall the contractor dispose of any material in environmentally sensitive areas, such as in areas of natural habitat or in watercourses. 6. Chemical or haza  Used oil and grease shall be removed from site and sold to an approved used oil recycling company. rdous wastes  Used oil, lubricants, cleaning materials, etc. from the maintenance of vehicles and machinery shall be collect ed in holding tanks and removed from site by a specialized oil recycling company for disposal at an approve d hazardous waste site.  Store chemicals in safe manner, such as roofing, fenced and appropriate labeling.

 Do not use unapproved toxic materials, including lead-based paints

7. Disruption of veg  Areas to be cleared should be minimized as much as possible. etative cover and  The Contractor shall remove topsoil from all areas where topsoil will be impacted on by rehabilitation activit ecological resour ies, including temporary activities such as storage and stockpiling, etc; the stripped topsoil shall be stockpile ces d in areas agreed with the Construction Supervision Consultant for later use in re-vegetation and shall be ade quately protected.  The application of chemicals for vegetation clearing is not permitted.  Prohibit cutting of any tree unless explicitly authorized in the vegetation clearing plan.  When needed, erect temporary protective fencing to efficiently protect the preserved trees before commence ment of any works within the site.  The Contractor shall ensure that no hunting, trapping shooting, poisoning of fauna takes place. 8. Traffic managem  Before construction, carry out consultations with local government and community and with traffic police. ent  Significant increases in number of vehicle trips must be covered in a construction plan previously approved. Routing, especially of heavy vehicles, needs to take into account sensitive sites such as schools, hospitals, an d markets.  Installation of lighting at night must be done if this is necessary to ensure safe traffic circulation.  Place signs around the construction areas to facilitate traffic movement, provide directions to various compo nents of the works, and provide safety advice and warning.  Employing safe traffic control measures, including road/rivers/canal signs and flag persons to warn of dange rous conditions.

 Avoid material transportation for construction during rush hour.  Signpost shall be installed appropriately in both water-ways and roads where necessary. 9. Interruption of ut  Provide information to affected households on working schedules as well as planned disruptions of water/po ility services wer at least 2 days in advance.  Any damages to existing utility systems of cable shall be reported to authorities and repaired as soon as possi ble. 10. Restoration of aff  Cleared areas such as disposal areas, site facilities, workers’ camps, stockpiles areas, working platforms and ected areas any areas temporarily occupied during construction of the project works shall be restored using landscaping, adequate drainage and revegetation.  Soil contaminated with chemicals or hazardous substances shall be removed and transported and buried in w aste disposal areas. 11. Worker and publi  Training workers on occupational safety regulations and provide sufficient protective clothing for workers in c Safety accordance with applicable Vietnamese laws.  Install fences, barriers, dangerous warning/prohibition site around the construction area which showing pote ntial danger to public people.  The contractor shall provide safety measures as installation of fences, barriers warning signs, lighting system against traffic accidents as well as other risk to people and sensitive areas.  If previous assessments indicate there could be unexploded ordnance (UXO), clearance must be done by qua lified personnel and as per detailed plans approved by the Construction Engineer.  Do not use of alcohol by workers during work hours  Do not work without safety equipment (including boots and helmets) 12. Communication  The contractor shall coordinate with local authorities (leaders of local communes, leader of villages) for agre with local comm ed schedules of construction activities at areas nearby sensitive places or at sensitive times (e.g., religious fes

unities tival days).  Copies in Vietnamese of these ECOPs and of other relevant environmental safeguard documents shall be ma de available to local communities and to workers at the site.  Disseminate project information to affected parties (for example local authority, enterprises and affected hou seholds, etc) through community meetings before construction commencement.  Provide a community relations contact from whom interested parties can receive information on site activitie s, project status and project implementation results.  Inform local residents about construction and work schedules, interruption of services, traffic detour routes a nd provisional bus routes, blasting and demolition, as appropriate.  Notification boards shall be erected at all construction sites providing information about the project, as well as contact information about the site managers, environmental staff, health and safety staff, telephone numbe rs and other contact information so that any affected people can have the channel to voice their concerns and suggestions.  Do not create nuisances and disturbances in or near communities 13. Chance find proc If the Contractor discovers archeological sites, historical sites, remains and objects, including graveyards and/or edures individual graves during excavation or construction, the Contractor shall:  Stop the construction activities in the area of the chance find;  Delineate the discovered site or area;  Secure the site to prevent any damage or loss of removable objects. In cases of removable antiquities or sen sitive remains, a night guard shall be arranged until the responsible local authorities or the Department of C ulture and Information takes over;  Notify the Construction Supervision Consultant who in turn will notify responsible local or national authorit ies in charge of the Cultural Property of Viet Nam (within 24 hours or less);

 Relevant local or national authorities would be in charge of protecting and preserving the site before decidin g on subsequent appropriate procedures. This would require a preliminary evaluation of the findings to be p erformed. The significance and importance of the findings should be assessed according to the various criter ia relevant to cultural heritage; those include the aesthetic, historic, scientific or research, social and econom ic values;  Decisions on how to handle the finding shall be taken by the responsible authorities. This could include cha nges in the layout (such as when finding an irremovable remain of cultural or archeological importance) con servation, preservation, restoration and salvage;  If the cultural sites and/or relics are of high value and site preservation is recommended by the professionals and required by the cultural relics authority, the Project’s Owner will need to make necessary design change s to accommodate the request and preserve the site;  Decisions concerning the management of the finding shall be communicated in writing by relevant authoriti es;  Construction works could resume only after permission is granted from the responsible local authorities con cerning safeguard of the heritage.