Integrated Safeguards Datasheet s7

INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE

I. Basic Information Date prepared/updated: 07/08/2009 Report No.: AC3512 1. Basic Project Data Country: Vietnam Project ID: P090723 Project Name: Vietnam Livestock Competitiveness and Food Safety Task Team Leader: Xiaolan Wang Estimated Appraisal Date: June 3, 2009 Estimated Board Date: November 10, 2009 Managing Unit: EASVS Lending Instrument: Specific Investment Loan Sector: Animal production (55%);Health (35%);Agricultural extension and research (10%) Theme: Rural services and infrastructure (40%);Rural policies and institutions (40%);Other rural development (20%) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 65.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 13 .00 13.00 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] or OP 8.00 (Rapid Response to Crises and Emergencies)

2. Project Objectives The project development objectives (PDO) are to increase the production efficiency of household-based livestock producers, to reduce the environmental impact of livestock production, processing and marketing, and to improve food safety in livestock product supply chains (mainly meat) in selected provinces. The project would contribute to the achievement of the higher-level objective of improving the overall competitiveness of the domestic livestock production.

3. Project Description The project will operate at both national and provincial levels and consists of three components: Component A: Upgrading Household-Based Livestock Production and Market Integration (US$68.21 million). This component would support the improvement of competitiveness of household-based livestock production, food safety and hygiene along the meat supply-chain linking household producers, slaughterhouses and local meat markets, and environmental management of livestock waste. This would be achieved through three sub-components implemented by the Departments of Agriculture and Rural Development (DARDs) in each of the project provinces. Component B: Strengthening Central-Level Livestock and Veterinary Services (US $4.19 million). This component would support strengthening capacity of the Department of Livestock Production (DLP) and Department of Animal Health (DAH) under MARD in developing and monitoring the implementation of animal health including livestock disease, bio-security, animal production technology, food safety, and livestock waste management policies and technical standards. The component would finance: (a) consultant services to review and update the GAHP standards and guidelines and to carry out strategic studies; (b) the training of trainers in GAHP (e.g., production efficiency, disease control and prevention, regulatory enforcement for DLP, and, integrated risk management and meat inspection for DAH); (c) piloting of innovative approaches (e.g., breed quality certification, true-labeling feed quality certification); (d) equipment and incremental costs for DLP to monitor livestock breed and feed quality and for DONRE to monitor livestock waste management and environmental compliance; and (e) equipment and incremental costs for DAH to support disease surveillance and prevention and meat inspection at the provincial level, as well as upgrading of collection and monitoring of zoo-sanitary and food safety data. Component C: Project Management and Monitoring and Evaluation (US$6.66 million). This component would support project implementation through the strengthening of coordination of the various government agencies at central, provincial and district levels, and the monitoring and evaluation of project activities and impact. This component would be implemented by a Project Coordination Unit (PCU) appointed by MARD at national level and Provincial Project Management Units (PPMUs) at the provincial level. The component would finance: (a) an international Chief Technical Assistant (CTA) and national consultants to strengthen the project management capacity of the PCU and PPMUs; (b) equipment and incremental staff and operating costs for PCU and PPMUs; and (c) project monitoring and evaluation (M&E) through consultant services, training, workshops and studies.

4. Project Location and salient physical characteristics relevant to the safeguard analysis The proposed project will be implemented in 12 cities and provinces. Four provinces or cities namely Ha Noi, Ho Chi Minh City, Thai Binh and Dong Nai will participate in the first phase of the Project.

Ha Noi, the Capital of Vietnam is located along the banks of the Red river. Ha Noi covers an area of 3.3 millions square kilometers, with a population of 6.23 millions people. National highway No.1 runs from Hanoi to Ho Chi Minh City, highway No. 6 joins Ha Tay with North-Western part of the country.

In 2008, Hanoi has approximate 1.67 millions pigs, 224,000 cows, 27,500 buffalos and 14 millions poultry. Pigs have been raised in 457,000 households (averaged 3-4 pigs/households) and larger scale farms with average size of 64 heads. In Hanoi there are 6 commercial swine slaughterhouses and the other two at the same scale for poultry. The remaining more than 200 slaughter houses have been operating in residential areas in ways and conditions that hygiene and environmental standards and requirements are not met.

Covering an area of 1,542 km2, Thai Binh province is located in a flat area and has a population density of 1,183 people/km2. Rural population accounts for 94,2% of the province's total population. The province borders within the Gulf of Tonkin to the east, with Nam Dinh and Ha Nam provinces to the south and southwest, with Hai Duong, Hung Yen to the northwest, and with Hai Phong City to the north.

Pigs account for 72% of Thai Binh's total livestock production. The province's livestock production plan focus on household farms and prioritize food safety.Livestock production planning goes along with improved waste management from farm level to slaughtering house and markets.

Dong Nai province is located in the southeast of Viet Nam, with an area of 5,894.73 km2. Population in 2006 density of 380,37 people/km2. Dong Nai is situated on the economic hub of southern Viet Nam. Dong Nai province has an advantage traffic system with many backbone national roads crossing such as National route 1A, national route 20, National route 51, North - South railway lines.

Dong Nai Province has a river density of about 0.5 km/km2. Most of rivers and springs are concentrated in the northern region and along the Dong Nai River in the south - western region.

Ho Chi Minh City is located 1,760 km south of Hanoi. The average elevation is 19 meters above sea level. It borders with Tay Ninh and Binh Duong provinces to the north, Dong Nai and Ba Ria-Vung Tau provinces to the east, Long An Province to the west and the East Sea to the south. The rainy season, with an average rainfall of about 1,800 mm annually (about 150 rainy days per year), usually begins in May and ends in late November. The dry season lasts from December to April.

In 2007, Ho Chi Minh City has 367,000 pigs, 104,000 buffaloes and 99,000 cows.Pigs are mainly raised in three suburban districts including Cu Chi, Binh Chanh and Hoc Mon. Most (98.2%) of the total 61,645 dairy cows have been raised at households level. The city's livestock production planning focus on breeding. Cao Bang province is located in the north east region of Vietnam, bordered with Quang Tay province of China to the north. Cao Bang has a total land area of 6,690 km2, mostly limes stone mountain mixed with earth hills. The average elevation is 200 m above sea level and higher near the border with China. The province has many dense forests. Hai Duong province is located in the Red River Delta. The province is bordered with six provinces and cities namely Bac Ninh, Bac Giang, Quang Ninh, Hai Phong, Thai Binh and Hung Yen. The province has a developed transport system comprising of railway, waterway, national and provincial highway.

Hung Yen province has a natural land area of 932 km2 and a population of 1.1 millions people in 2008. The province share border with five cities and provinces including Ha Noi, Bac Ninh, Hai Duong, Ha Nam and Thai Binh

Hai Phong City is located at 102 km north of Hanoi. Hai Phong City has a total land area of approximately 152 ha. Hai Phong city is bordered with Quang Ninh Province to the north, with Hai Duong and Thai Binh provinces to the west and the south, respectively, and with the East Sea to the east. Hai Phong City has a dense river system with density from 0.6 - 0.8 km/km2 Thanh Hoa Province is located at 150 km south of Hanoi, border with the east sea and three provinces. The province has a population of 3.67 millions people. Total land area is approximately 1.1 millions ha. Topographically, the province is divided into three regions, including mountains and hilly areas, flat plains intervented with limestone mountains, and coastal plains with elevation averaged from 3 to 6 m.

Thanh Hoa is located in area with annual rainfalls of 1,600 - 2,300 mm. There are 90 - 130 rainy days each year. Water resource is abundant with four major river systems including Hoat, Ma, Chu and Yen rivers. The province has 484,000 ha of forested land which accounts for 44% total land area. Forests are biological diverse.

Nghe An province is bordered with Thanh Hoa in the North with similar physical and climate conditions. Population density is at 183 people/km2. Topographically, the province is lowered from northwest to southeast, hills and mountains account for 83% of total land areas. Nghe An has approximately 745,000 ha of forested land and a dense river system (0.7 km/km2).

Lam Dong province has in three highlands which are upstream of seven large river systems. Topographically, the province comprises of mostly high mountain intersected by flat valleys. Average elevation is from 800 to 1000m. Total land area is 9,772 square kilometers. Road network has been developed to district centers however not all the communes are yet accessible by vehicles.

Long An province is bordered with Ho Chi Minh City and Tay Ninh City to the south, with Cambodia to the north, with Dong Thap province to the west, and with Tien Giang province to the south. Long An is affected by irregular semi tidal from the East Sea through the Soai Rap river mouth.

Ethnic Population in project areas: Ethnic minorities are found in 7 out of 12 proposed project provinces with the highest proportions in Cao Bang and Lam Dong provinces (95.3% and 22.9% respectively). Other provinces having ethnic minority population are Thanh Hoa, Nghe An, Ha Tay (merged with Hanoi recently) and Dong Nai. Therefore, OP4.10 on Indigenous Peoples is triggered. In the two rapidly urbanized provinces, Ha Tay and Dong Nai, however, the ethnic minority population is limited (1% in Ha Tay and less than 4% in Dong Nai). The Muong and Tay ethnic groups in these two provinces are fully integrated with the dominant Kinh group. They have adopted Kinh language, dress and economic systems and therefore do not maintain a distinct cultural or social identity. 5. Environmental and Social Safeguards Specialists Ms Lan Thi Thu Nguyen (EASVS) Ms Ly Thi Dieu Vu (EASVS)

6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X 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

II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The proposed project would support the development of pilot Livestock Planning Zones (LPZ), an existing or proposed land area that local authorities designate for livestock production promotion. Project fund will be used to upgrade small access roads, electricity and water supply, waste and wastewater treatment facilities. Similar investments would also be allocated to small scale district slaughterhouses and meat markets. LIFSAP would also provide investments on non-structural works regarding animal health services such as vaccination, disease control and surveillance etc.

The potential impacts of the proposed project include increased livestock waste and wastewater generation from pilot LPZs or slaughterhouses. Such waste and wastewater have potential to cause negative impacts on local air, soil and water, and affect public health due to high contents of nutrient, pathogens and gases.The Project has included in its design a matching grant program to design and build livestock waste and wastewater treatment facilities for farms in LPZs and slaughterhouses. The type of chemicals to be provided under LIFSAP for pest control purpose shall be in compliance with MARD Decision No. 23/2007/ QD-BNN dated 28 March 2007 in which the lists of usable / banned pesticides in Vietnam was included. Storage, transport, usage, disposal of such chemicals shall comply with the relevant articles regulated in the Ordinance on Plant Protection and Quarantine issued at Decision no 36/2001/pl-ubtvqh10 by the National Assembly on 25 July 2001, and MARD Decision No. 145/2002/QD-BNN dated 18 December 2002.

OP 4.12 on Involuntary Resettlement

The project is expected to have marginal adverse impacts with respect to land acquisition and resettlement. Involuntary resettlement could potentially occur as a result of: (i) land acquisition for small-scale infrastructures; and (ii) transfers of land between farmers, on a less than voluntary basis, to form or consolidate a designated LPZ. It was anticipated that limited level of land acquisition will be entailed as the result of the investment in small scale infrastructures (eg. road, electricity, and water and sewage schemes) in the LPZs and for the meat-market upgrading. Each of the small infrastructures is anticipated to have low-intensive impact. Land for the LPZs would mainly take the form of voluntary self-exchange among farmers who have land in the potential zones and those who are outside but wish to do livestock production in the zones. Three main forms of self-arrangements were practiced in the visited provinces, including a) selling and buying of Land Use Right Certificate by negotiation between farmers; b) renting of land and c) swapping of land between farmers. Therefore, involuntary land acquisition for the LPZs themselves will be minimized. However, if the consultation process indicates that some land in the designated LPZs or elsewhere is being vacated on a less than voluntary basis, then the land acquisition activities will follow the principles and approaches set out in the Resettlement Policy Framework (RPF) and a Resettlement Plan (RP) will be developed with specific mitigation measures for identified items involving involuntary land acquisition.

OP 4.10 on Indigenous Peoples

Ethnic minorities are found in 7 out of 12 proposed project provinces with the highest proportions in Cao Bang and Lam Dong provinces (95.3% and 22.9% respectively). Other provinces having ethnic minority population are Thanh Hoa, Nghe An, Ha Tay (merged with Hanoi recently) and Dong Nai. Therefore, OP4.10 on Indigenous Peoples is triggered. In the two rapidly urbanized provinces, Ha Tay and Dong Nai, however, the ethnic minority population is limited (1% in Ha Tay and less than 4% in Dong Nai). The Muong and Tay ethnic groups in these two provinces are fully integrated with the dominant Kinh group. They have adopted Kinh language, dress and economic systems and therefore do not maintain a distinct cultural or social identity While the proposed LIFSAP is anticipated to have positive impacts on the incomes of ethnic minorities through strengthened household-based producer food chain and livestock production, attention is needed to ensure that ethnic minorities are informed and consulted on the project activities and that they participate and benefit from the project. Government of Vietnam's policy on Ethnic Minorities is similar to the World Bank policy OP 4.10. A draft Ethnic Minority Development Framework (EMDF) has been developed for the project. The draft EMDF will be reviewed and found satisfactory to IDA. Each participating province having ethnic minority population must formally adopt the EMDF before it is eligible for project financing and subsequent Ethnic Minority Development Plans will be developed.

2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: A potential long term indirect impact to be considered in the project is the safety of the humans and the environment when dealing with animals or chemicals during daily livestock production practice (in contact with animal, manure handling or using chemicals for fly or pest control). Mitigation measures to address potential issues during design, construction and operation phases have been included in EMF to minimize these impacts.

3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. In addition to the matching grant program to supports household farms to build bio- digesters for livestock waste and wastewater treatment facilities, the Project would also consider secondary treatment options through lagoons or fishponds. Recycling of manure would also be carried out under the proposed project.

4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. Environment: An Environmental Management Framework (EMF) has been prepared in line with the existing Vietnamese environmental management requirements and the Bank's environmental safeguard policies. The EMF proposes a framework for environmental management in LIFSAP, which covers: (i) environmental activities incorporated into project design; (ii) mechanisms for environmental screening, requirements on environmental assessment and management procedures for LPZs and slaughterhouses; (iii) environmental checklists and management plans for infrastructures provided by LIFSAP; (iv) the measures to mitigate the potential environmental impacts related to non-structural investments. LPZs and slaughterhouses are classified into two groups based on MONRE's Decree 21/2008 in order to identify environmental document preparation requirements. The EMF provides detailed guidelines on both screening and classification and on the preparation of environmental assessment documents: - LPZs containing 1000 pigs or 20,000 poultry equivalent will have to prepare EIAs. No physical investments in the LPZs will be financed in the first year of the project. All EIAs will be subjected to the World Bank's review and approval. Environmental Protection Commitments (EPC) would be required for smaller LPZs.The first four EPCs, one from each province/city participating in the first phase of the Project, will be subjected to WB review. - LIFSAP will not fund slaughterhouses that would require an EIA (capacity exceeding 1000 heads per day). Therefore Environmental Protection Commitments would be required. Checklists and samples of environmental management plans have been developed for other small infrastructure to be financed by LIFSAP. These checklists and plans shall form parts of the EPC which is required for small-scale infrastructure. The EMF also included specific measures for mitigating potential environmental impacts related to non- structural works under LIFSAP. The mitigation measures such as provision of protective equipment or training on safety rules etc. will be applied as needed.

The Borrower is the Ministry of Agriculture and Rural Development (MARD). MARD has assigned the Department of Livestock Production (DLP) of preparing and coordinating LIFSAP project. The Borrower possesses adequate capacity for implementing the Project's Environmental Management Framework described above, given their extended experience in previous IDA/other internationally funded projects. DLP has also set up its Livestock Environment Management Division (EMD) in April 2008. On the other hand, an Environmental and Social Safeguard Officer will be appointed at the Central Project Management Unit. He/she, together with EMD staff, will take part in the implementation of the project's environmental activities and be responsible for implementing and supervising the project's social and environmental safeguard procedures. An international environmental/ livestock waste management specialist and a qualified national environmental consultant will be recruited to provide technical inputs for the detail design and implementation of the environmental activities and management framework.

At provincial level, technical staff at DONRE/DARD will also be assigned to take part in environmental capacity building, monitoring and management activities. Adequate budget has been allocated for the implementation of the environmental activities, mitigation measures and monitoring.

Social: During the project preparation, an international consultant team with social development expertise was hired to carry out the Social Assessment and to help PCU to develop a Resettlement Policy Framework and an Ethnic Minority Development Framework. The preparation of the Resettlement Plans and Ethnic Minority Development Plans will be guided by these policy frameworks.

Training will be provided to project staff for implementing/supervising the Environmental Management Plans, Ethnic Minority Development Plans and Resettlement Plans.

5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders of the Project are: - The Ministry of Agriculture and Rural Development (MARD) - The Department of Livestock Production (DLP) under MARD - The Department of Animal Health under MARD (DAH) - The Provincial Department of Livestock Production (DARDs) - The Provincial Department of Natural Resource and Environment (DONRE) - The Provincial /Regional Veterinary Department - Household Farm owners at the existing and proposed LPZs - Slaughterhouse owners and workers - Management boards and meat businessmen at meat market financed by LIFSAP - Other people affected by the construction and operation of small-scale infrastructure financed by LIFSAP

The draft EMF, EMDF and RPF have been disclosed at the Bank's InfoShop and Vietnam Development Information Center. The Vietnamese version of such documents will be further disclosed at provincial level before Project negotiation.

Public consultation will be conducted during the preparation of safeguard documents for LPZs and other physical investments such as Environmental Management Plans, Resettlement Plans and/or Ethnic Minority Development Plan, where applicable. The final draft of these documents shall be shall be disclosed at public accessible place in project commune. The EIA and EMP of LPZs shall be disclosed at the Bank.

B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 04/28/2009 Date of "in-country" disclosure 04/29/2009 Date of submission to InfoShop 04/29/2009 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 04/28/2009 Date of "in-country" disclosure 04/29/2009 Date of submission to InfoShop 04/29/2009 Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 04/28/2009 Date of "in-country" disclosure 04/29/2009 Date of submission to InfoShop 04/29/2009 Pest Management Plan: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank N/A Date of "in-country" disclosure N/A Date of submission to InfoShop N/A * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: No stand-alone Pest Management Plan was prepared but relevant issues were addressed in the Environmental Assessment.

C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting)

OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Sector Manager (SM) Yes review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the No credit/loan? OP 4.09 - Pest Management Does the EA adequately address the pest management issues? Yes Is a separate PMP required? No If yes, has the PMP been reviewed and approved by a safeguards specialist or N/A SM? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as Yes appropriate) been prepared in consultation with affected Indigenous Peoples? If yes, then did the Regional unit responsible for safeguards or Sector Yes Manager review the plan? If the whole project is designed to benefit IP, has the design been reviewed Yes and approved by the Regional Social Development Unit or Sector Manager? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process Yes framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Yes Manager review the plan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Yes Infoshop? Have relevant documents been disclosed in-country in a public place in a Yes form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities Yes been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the Yes monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the Yes borrower and the same been adequately reflected in the project legal documents? D. Approvals

Signed and submitted by: Name Date Task Team Leader: Ms Xiaolan Wang 05/19/2009 Environmental Specialist: Ms Ly Thi Dieu Vu 05/04/2009 Social Development Specialist Ms Lan Thi Thu Nguyen 05/04/2009 Additional Environmental and/or Social Development Specialist(s): Approved by: Sector Manager: Ms Hoonae Kim 06/02/2009 Comments: