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46436-002: Samoa Agribusiness Support Project

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46436-002: Samoa Agribusiness Support Project Environmental and Social Monitoring Report 2nd 2017 Semi-Annual Report 29 March 2018 Samoa: AgriBusiness Support Project Prepared by Samuelu Sesega for the Ministry of Finance, Government of Samoa and the Asian Development Bank. This environmental and social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Safeguards Monitoring Report Project: ADB Samoa AgriBusiness Support Program (SABS) Reporting Period: 1 July – 31 December, 2017 Status: Draft Date: 29 March 2018 TABLE OF CONTENTS Section Page No. List of Abbreviations 4 1 Introduction 5 1.1 Overview of Project 5 1.2 Summary of agribusinesses monitored 6 2 Environmental and Social Safeguards 10 3 SABS and the Environmental and Social Management System (ESMS) 10 4 Agribusinesses for ESMF Compliance 11 4.1 Methodology 11 4.2 Rating Compliance 13 5 Monitoring Results 13 6 Findings and Conclusions 20 7 Recommendations 20 8 Annex 1 – Brief Descriptions of all Agribusinesses Monitored 21 ‐ 34 8.1 Samoa Coconut Clusters, Vaitele 21 8.2 T H Plantation, Aleisa 23 8.3 Samoa Meats Supplies, Alaoa 25 8.4 Farm Supplies Ltd, Nuu 26 8.5 Samoa Koko, Asau 27 8.6 Ms Sunshine Farms, Tuanai 28 8.7 Strickland Brothers Ltd, Vaitele 31 8.8 SVGreen, Aleisa 33 2 8.9 Mailelani Cosmetics 35 8.10 HealthyMe! Hydroponics 37 8.11 Ata Frozen taro 38 3 Abbreviations ACEO Assistant Chief Executive Officer ADB Asian Development Bank ADB SPS Asian Development Bank Safeguards Policy Statement ANZ Australia‐New Zealand Bank BSP Bank of the South Pacific CEO Chief Executive Officer EIA Environmental Impact Assessment ER Effectiveness Rating EMP Environmental Management Plan ESMS Environment and Social Management System FI Financial Intermediaries FM Facility Manager GOS Government of Samoa GRM Grievance Redress Mechanism MNRE Ministry of Natural Resources and Environment MOF Ministry of Finance PEAR Preliminary Environmental Assessment Report PM Project Manager PMU Project Management Unit PUMA Planning and Urban Management Agency SABS ‐ Samoa Agribusiness Support Project SCB Samoa Commercial Bank SROS Scientific Research Organization of Samoa SSA Social Safeguards Advisor SSMR Semi‐annual Safeguards Monitoring Reporting TL Team Leader 4 1. INTRODUCTION Semi‐annual safeguards monitoring reporting (SSMR) is a requirement of the Samoa AgriBusiness Support (SABS) Project agreement between Government of Samoa (GOS) and the Asian Development Bank (ADB). Preparation of the SSMR is one of the deliverables under the Social Safeguards Advisor’s (SSA) contract. The purpose of the SSMR is to document the status of safeguards compliance for all Financial Intermediaries (FIs) and subprojects or agribusinesses supported under the Samoa AgriBusiness Support (SABS) Project through approved FIs. This is the fourth 6‐monthly monitoring report for the Samoa AgriBusiness Support (SABS) Project. It covers both environmental and involuntary resettlement (IR) compliance for the period 1 July – 31 December 2017. 1.1 Brief Overview of the Project The SABS Project is financed by an ADB grant to the Government of Samoa (GoS). Approved in June 2014, the SABS aims to support the strengthening of the agribusiness sector by improving access to finance for eligible agribusiness enterprises. Funds are accessed by eligible and qualified agribusinesses through the following four financial intermediaries (FI): ANZ Bank, Bank of the South Pacific (BSP), Samoa Commercial Bank (SCB) and National Bank of Samoa (NBS). SABS’ focus is to address the key financial and capacity limitations in selected agribusinesses that have sound prospects for commercial success and which will contribute to the higher level objectives of value addition, employment, trade and rural incomes. The project has three outputs: Output 1 – Improved access to finance for selected agribusiness enterprises to address the lack of suitable financing instruments, the risk awareness of commercial banks to lend long term to the sector, the overall liquidity constraints in the financial sector, and the shortage of capital in the agribusiness sector. Output 2 – Business Support Services provided by the project to partner companies to help build their capacity in a broad range of areas which are critical to business success and adherence to environmental and social safeguards. Output 3 – Project Management: This involves a Project Management Unit (PMU) to be established within the Ministry of Finance (MOF) to be responsible for financial control, procurement and reporting. Project implementation is supported by a Project Management Unit (PMU) consisting of a Project Manager handling project finances and administration, a Project Assistant, and two specialists ‐ a Facility Manager with responsibility for financial, banking and business management due diligence, and planning for all agribusiness proposals considered for SABS support, and a Social Safeguards Advisor (SSA) with responsibility for ensuring FI and agribusiness’ compliance with ADB safeguards policies and GoS safeguards laws and regulations. The PMU is located within the Ministry of Finance (MOF). 5 1.2. Summary of Agribusinesses Monitored for this report Fourteen (14) agribusinesses are covered in this report, two less than previously reported. Seven (7) are operational with varying support from SABS; one (1) is on‐hold temporarily, and six (6) are at various preparatory stages of designing and planning. SABS safeguards scrutiny commences early in the sub‐project identification and design stage with initial site assessment for EA and IR critical to determining safeguards feasibility/acceptability. In this way, Category A proposals are eliminated early and Category B and C proposals are assisted in their planning and design. The table below summarizes each agribusiness, status, the safeguards category assigned for environment (EA) and social impacts (IR) respectively, and the safeguards issues of priority for on‐going monitoring. 6 No. Name of SABS Environmental IR screening Issues of Concern for Monitoring supported Screening subproject Cat C 1 Samoa Coconut Clusters, Cat C Env – Operations have been relocated entirely to a new site, a customary owned land Vaitele, Upolu Is belonging to one of the Principals. The key issues on this new site is the management of waste water and by‐products during operational phase (coconut shells, coconut water, Product(s) ‐ virgin wastewater from cleaning operation; extraction and disposal of used oils from centrifuge); coconut oil IR ‐ none 2 Mailelani Cosmetics, Cat C Cat C Env ‐ waste water management during operational phase. Papauta, Wastewater volume is low, and impact is minimum but is not managed in accordance with Upolu Is; best practice. Products – scented IR ‐ none coconut‐oil based body oils, lotions soaps, etc.. 3 T & H Plantation Ltd, Cat B Cat C Env – Continued sound management of by‐products and wastes (peelings, used oil, plastic) Aleisa, Upolu Is other municipal wastes including used oil containers and packaging waste during operation. Products – taro, bananas, IR ‐ none and breadfruit chips (snacks) 4 SVM Green, Aleisa, Upolu Cat C Cat C Env ‐ Management of pesticides and other agro‐chemicals during operation; possible Is expansion into new areas – loss of forests and natural habitats. Horticultural produce – IR ‐ none fresh cabbages, tomatoes, green peppers, etc. Savaii Koko, Asau & 5 Cat C Cat C Management of by‐products; dry cocoa pods, dry reject cocoa beans’; Vaisala, Savaii Is IR ‐ none Products – dried cocoa beans; No. Name of SABS Environmental IR screening Issues of Concern for Monitoring supported Screening subproject 6 Samoa Meats Supplies, Cat C Cat C Env ‐ Management of solid and liquid wastes, and by‐products (hide, meat offcuts, bones) Alaoa, Upolu Is during operation; Products beef/assorted IR ‐ none meat cuts; 7 Ms Sunshine Farms, Cat C Cat C Solid waste management; (municipal solid waste; reject cocoa beans); Tuanai, Upolu Is. IR ‐ none Products – dried cocoa beans 8 Healthy Me! Cat C Cat C Env – none Hydroponics, Papauta, IR – Confirmation of land lease agreement with new landowner.. Vailima Upolu Is Produce – assorted vegetables (cabbages, tomatoes, etc.); 9 Island Shopper Butchery, Cat B Cat C Construction impacts for slaughter house; management of waste from slaughter house and Lalomalava. butchery during operation. Products – beef/assorted This Project is progressing under its own funding (from Samoa Development Bank which is meat cuts not a FI under the SABS) with SABS providing technical assistance in the form of business support, advice on slaughterhouse design and on safeguards requirements. No. Name of SABS Environmental IR screening Issues of Concern for Monitoring supported Screening subproject 10 Schwalger Plantation Cat C Cat C Land ownership – extent of customary land to be involved remains to be clarified; Expansion proposal, management of agrochemicals during operation; management of goat population; possible Patamea, Savaii loss of native forests or sensitive ecosystems; Products – taro; beef, This is a proposal still under review and assessment. Two site assessment visits have been possibly
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