The World Bank Integrated Landscape Management in Watersheds (P170848) Public Disclosure Authorized

For Official Use Only

Public Disclosure Authorized Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage)

Date Prepared/Updated: 12/10/2020 | Report No: ESRSA01204 Public Disclosure Public Public Disclosure Authorized Public Disclosure Authorized

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BASIC INFORMATION

A. Basic Project Data

Country Region Project ID Parent Project ID (if any)

Dominican Republic LATIN AMERICA AND P170848 CARIBBEAN

Project Name Integrated Landscape Management in Dominican Republic Watersheds

Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date

Environment, Natural Investment Project 12/15/2020 1/29/2021 For Official Use Only Resources & the Blue Financing Economy

Borrower(s) Implementing Agency(ies)

Ministry of Economy, Ministry of Environment and Planning and Natural Resources Development

Proposed Development Objective The objective of the proposed GEF project is to strengthen integrated landscape management in targeted watersheds in the Dominican Republic. Public Disclosure Public

Financing (in USD Million) Amount

Total Project Cost 4.06

B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No

C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The project will address identified challenges for the successful maintenance of landscapes and biodiversity, namely inter-sectoral coordination, uptake of sustainable agricultural practices, and restoration of critical landscapes. The proposed operation is based on a participatory, multi-sector, and Integrated Landscape Management (ILM) approach that considers upstream and downstream impacts across priority sectors and regions within the Yuna and Yaque del Norte watersheds. Project activities will be specifically focused on ways to contribute to Land Degradation Neutrality

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(LDN) while ensuring the sustainability of productive systems, including through prioritization criteria for the locations where investments will be made. The PDO will be achieved through four components: Component 1 seeks to create an enabling environment for ILM across the contiguous jurisdiction of Yaque del Norte and Yuna watersheds, with a focus on governance, policies, and implementation arrangements. Components 2 and 3 will focus on critical hotspots for testing innovative approaches for reducing land degradation and biodiversity loss. Component 2 consists of testing and scaling up sustainable production systems to improve productivity, water use efficiency, and biodiversity conservation, while Component 3 targets the restoration of biodiversity and hydrological ecosystem services in critical ecosystems through activities like agroforestry systems for coffee and cacao, restoration of degraded areas, and sustainable livelihood alternatives. Component 4 covers project monitoring and management. Each component contributes strategically to the achievement of the PDO, by respectively (i) providing a platform for governance and land use zoning and planning based on science, social inclusion of vulnerable populations, and learning through participation that lead to agreements on a shared vision for the watershed and future monitoring of long-term trends; (ii) strengthening the technical capacity of the country to promote and monitor the adoption of sustainable For Official Use Only production in rice systems in the lower watershed to reduce environmental impacts to surrounding and downstream ecosystems; (iii) conserving and restoring key ecosystems in terms of water recharge and ecosystem structural diversity through biodiversity friendly productive activities and crops; and (iv) developing the capacity to monitor and evaluate the environmental trends and effects, such as changes in habitat connectivity, system-level water footprints, and biodiversity trends.

D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] The project will operate in the Dominican Republic and will focus on an Integrated Landscape Management (ILM) approach for sustainable management of natural resources, considering upstream/downstream impacts in the Yaque Public Disclosure Public del Norte and the Yuna watersheds. Component 1, which consists of technical assisstance activities will be implemented throughout both watersheds, whereas project activities under Component 2 (sustainable rice production) and 3 (restoration of biodiversity and hydrological services in critical ecosystems) will take place within a defined landscape unit for the project. This landscape unit encompasses the Yuna Watershed territory and some municipalities of the northern part of the Yaque del Norte Watershed that are part of the "Mother of Waters" area which is of great importance for water provision to local communities and its biodiversity. The Yaque del Norte and Yuna watersheds constitute the Valley, which is the major agricultural production region in the country. Both watersheds are of great importance to the country due to the biodiversity they host and the ecosystem services these areas provide. Given the wide altitudinal range (from 2800 to 0 meters), multiple ecosystems are present in the landscape hosting important biodiversity of the Caribbean region.

The Yaque del Norte watershed (with an area of 689,113 ha) located on the northwest region of the country, is the largest and most important watershed, covering 14.6% of the country. This watershed hosts the largest in the country – the Yaque del Norte River which their main (Jimenoa, Bao, Ámina, Mao, Guayubín y Maguaca) feed approximately 75 micro watersheds that are critical for water supply for urban populations, meeting the needs of agricultural and industrial sectors, and providing a source for hydroelectric power generation. Agriculture practices cover 20% of the watershed's area and require about 80% of the total water available. The remaining watershed area corresponds to forests, scrub and grasslands, mangroves, and urban areas. Urban areas use about 12% of the

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watershed's water. Water balance in the Yaque del Norte Watershed is projected to be in deficit by 2025. Over 34% of the watershed is part of the National System of Protected Areas, which includes 6 different categories of protected areas totaling to 25 protected areas: (i) 4 of Strict Protection; (ii) 3 National Parks; (iii) 4 Mangroves; (iv) 3 Natural Monuments; (v) 2 Habitat Management Areas; (vi) 5 Natural Reserves; and (vi) 4 Protected Landscapes. Some of these parks have been largely reforested, and serve an important function for controlling erosion and surface water runoff for the country, decreasing the spread of household and agricultural waste.

The Yuna watershed (with an area of 290,549 ha) located on the northeast region of the country is considered a cornerstone piece that allows a continuous and biologically diverse landscape creating a pathway for environmental flows that goes from the upper and lower montane humid forests of the central highlands to the coastal lowland forests, wetlands, mangroves, and seagrasses that extend into the Samaná Bay and towards the . The Samana Bay, is the largest semi-enclosed bay in the Caribbean, which contains the most extensive mangrove and shrimp fisheries in the country, and is considered as the most important sanctuary for humpback whales in the North For Official Use Only Atlantic. The Yuna watershed contains 12 protected areas, classified as follows: (i) 6 National Parks; (ii) 2 Scientific Reserves; (iii) 3 Scenic Routes; and, (iv) 1 Natural Monuments.

Both watersheds face severe deforestation, forest and land degradation, soil erosion, and are vulnerable to extreme weather events ( and droughts) whose severity is likely to increase due to climate change. Agricultural production is the primary driver of deforestation and forest degradation in the country, which results in overexploitation of water resources and overuse of agrochemicals and pesticides. The decline in water availability is driven by deforestation and soil degradation, from the expansion of unsustainable agricultural practices, cattle ranching, inadequate land management planning, and reduced precipitations. In the lower sections of both watersheds, inefficient rice production systems demand increasing water resources, generating GHG emissions (methane), and contributing to soil and water contamination through agrochemicals and pesticide runoff. Rice is the main contributor to agricultural production value-added in the country and represents 14% of agriculture GDP. It

Public Disclosure Public constitutes an important source of jobs and is considered a strategic crop in terms of food security, as represents the main staple of the Dominican diet. Approximately 30,000 farmers are dedicated to rice production, of which about 50% are small producers with less than 3 hectares, and in total, about 300.000 people are directly employed by the sector. Additionally, small rice producers do not seem to be organized in robust associations such as the cocoa or coffee sectors, which increases their vulnerability to potential productive and socioeconomic changes.

The territory of the Yaque del Norte watershed is shared by 21 municipalities, belonging to the provinces of La Vega, Santiago, Valverde, Santiago Rodríguez, Monte Cristi, and Dajabón and its waters also supply the inhabitants of the Espaillat province, through the Cibao Central aqueduct. There is a population of approximately 1.8 million inhabitants in the entire watershed. In general, the population in the Yaque del Norte River Watershed represents 15.89% of the Dominican population. Most of the population is concentrated in the province of Santiago, with 66% of its inhabitants. The Yaque del Norte region is home to important agricultural and industrial sectors, especially in Santiago, its main development pole. Rice production is the main agricultural activity. Banana production is also important, specifically in Monte Cristi and Valverde. Another agro-economic activity is the production of coffee and cocoa. In addition, cattle ranching has been developed in the watershed. In the upper part of the watershed, an informal economy has developed, based mainly on handicrafts and the cassava industry (food derived from cassava). Mining is also booming due to mining deposits and salt production. Land uses for agriculture represent 42.6% of the total surface of the watershed. This includes areas with intensive annual crops in 16.7 % (115,113 ha), with rice as the most important crop. Subsistence agriculture occupies 9% distributed on hillside, slope, and rocky ground. Perennial

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crops occupy 2.5%, almost exclusively formed by coffee distributed in the most southeastern sector of the upper watershed. Pastures occupy 14.3 % of the territory, including both natural and intensive pastures, where there is a strong footprint of livestock activity. Other coverages in the watershed include savannah vegetation, sparse vegetation, rural areas, dams, and water bodies such as lagoons and lakes. The extreme poverty index of the watershed is below the national index, reaching maximum values of 8.8 %.

The Yuna River Watershed is the second largest in the country and comprises 23 municipalities, belonging to the provinces of La Vega, Monseñor Nouel, Sánchez Ramírez, Espaillat, Hermanas Mirabal, Samaná, and Duarte. It is estimated that the total population is 1,3 million inhabitants, approximately 12.7% of the Dominican population. The watershed is one of the most important agricultural regions within the context of the country's agricultural development, with frequent agrarian reform initiatives led by the Dominican government aimed at promoting rice production in its lower part. The Yuna hydrographic region has the largest area of productive soils, generating more than 50% of the rice consumed in the country, as well as bananas, corn, beans, coffee, and cocoa, among others. For Official Use Only Another relevant economic activity is cattle, specifically dairy and meat production, as well as poultry and pork farming. In addition, the two largest mining operations in the country are located in the watershed, extracting ferronickel, gold and silver. The Pueblo Viejo mine, located in the middle watershed, is the largest gold mine in the Americas and the fourth largest extraction of Ferro-nickel in the world. These exploitations have created numerous social problems and significant environmental impacts. The seven provinces that make up the watershed have higher levels of poverty than at the national level (30.5%), with the province of Samaná being the most affected (56%). However, the indices of extreme poverty do not exceed the national level (10.4%), although the provinces of Samaná (8.8%) and Duarte (8.4%) have the highest indices in the watershed. D. 2. Borrower’s Institutional Capacity The institutional arrangements for the project will be multi-sectoral, to mirror the activities to be implemented. These will include a Steering Committee (SC), an Advisory Committee (AC), a Project Director, and a Project Implementation Unit (PIU). MARN will be the implementing agency and designated recipient of the GEF, and will establish the PIU.

Public Disclosure Public The Project Director will be a senior official from MARN's Vice-Ministry of Land and Water, responsible for carrying out the commitments to the United Nations Convention to Combat Desertification (UNCCD) and therefore to the GEF Land Degradation focal area. The PIU will consist of dedicated, full time, and qualified personnel (hired or designated) that will include a general coordinator and the following specialists: financial, procurement, monitoring and evaluation, and environmental and social (E&S) specialists (one of each). The PIU will be responsible for project implementation and coordination within all involved parties. The PIU will report to the Project Director. The PIU will be also in charge of carrying out ongoing capacity building to the implementing entities at the national and local levels throughout project implementation. The PIU will develop and implement an environmental and social training plan that will include topics such as the Environmental and Social Framework (ESF) of the World Bank, the E&S instruments prepared for the project, participatory monitoring and evaluation for the projects, among other topics as detailed in draft ESCP Environmental and Social Commitment Plan (ESCP) of the project. Project implementation will also involve the Ministry of Agriculture (MA) and MEPyD. The E&S Specialists will support the management of E&S risks including environmental, social, health, safety (ESHS), labor, stakeholder engagement among other relevant aspects, and other tasks associated with supervision, monitoring, reporting, and training related to the Environmental and Social Standards of the World Bank. MARN has demonstrated capacity and experience preparing and implementing projects with the Bank, such as the "Resilient Agriculture and Integral Management of Natural Resources in the River Watersheds of Yaque del Norte and Ozama-Isabela" (P163260; recently dropped), the "National Strategy for Reducing Emissions for Deforestation and Degradation" (P151752), and the "FCPF Carbon Fund Dominican Republic Emissions Reduction Program" (P161182). MARN also has previous experience working with the GEF projects and has

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successfully executed a total of 40 GEF projects in thematic areas such as Biodiversity Conservation, Coastal Zone Management, National Protected Area Systems, Sustainable Land Management, among others.

Additional activities to further strengthen the institutional capacity of MARN and the MA for the management of ESHS aspects include training on the application of the ESF during all project activities. Capacity building measures have been included as part of the Environmental and Social Commitment Plan (ESCP) prepared for the project. The Bank will continue to provide continuous guidance and support to these Ministries and the PIU, once established, for the update and completion of the project’s E&S instruments required by the ESF, as well as to provide capacity building and support during project implementation. The PIU will develop and implement an environmental and social training plan for project beneficiaries that will include topics such as the Environmental and Social Framework (ESF), the E&S instruments prepared for the project, participatory monitoring and evaluation for the projects, and others. This Plan will be presented to the Bank no later than three (3) months after the Project Effectiveness date.

For Official Use Only The SC will be composed by the MARN (Chair); MA; and the Ministry of Economy, Planning, and Development (MEPyD). The SC will make strategic decisions to guide the implementation of the operation, as well as approve the Annual Operations Plan (AOP) and the budget. The AC will include technical officers from different departments within the MARN (Protected Areas and Biodiversity, Forest Resources, International Cooperation, Social Participation, and Gender); Ministry of Agriculture (Vice-Ministries of Planning and Extension, BioArroz, and the Agroforestry Unit); MEPyD (Land Use Planning Directorate and the Water Board); and others, such as the Dominican Institute of Agricultural and Forest Research (IDIAF), National Institute of Hydraulic Resources (INDRHI), Presidential Commission for the Yaque del Norte River Watershed, Technical Coordination Group (GTI), Dominican Federation of Municipalities (FEDOMU), Biodiversity Table, Food and Agriculture Organization of the United Nations (FAO), Inter-American Institute for Cooperation on Agriculture (IICA), Dominican Institute for Coffee (INDOCAFE), Cocoa Commission, Plan Sierra, producers associations, and boards. The AC will ensure coordination and synergies among the different stakeholders involved, according to the Integrated Landscape Management (ILM) approach. The AC will

Public Disclosure Public provide inputs for the AOP and the budget to be approved by the SC and will hold quarterly meetings.

II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS

A. Environmental and Social Risk Classification (ESRC) Substantial

Environmental Risk Rating Moderate The environmental risk rating of the project has been determined as Moderate. Overall, the project will promote the adoption of more sustainable and resilient land-use practices that will contribute to the conservation of local and globally important ecosystems and biodiversity, reduce forest and soil degradation, control erosive processes, promote water efficiency practices, improve land use planning, and contribute to GHG emissions reductions. The project will also promote good agricultural practices, including the reduction of agrochemical and pesticide use in rice production and agroforestry systems.

The project includes both technical assistance as well as investment activities in sustainable rice production and land restoration aimed at the conservation of biodiversity and the provision of hydrological services in critical ecosystems within the targeted watersheds. Technical assistance activities aim to strengthen landscape governance through

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inter-institutional coordination, capacity building, and improved information systems at the national and local level related to sustainable watershed management. Investment activities consist of sustainable rice production demonstration plots and land restoration activities including (i) shade-grown coffee and cacao agroforestry systems; (ii) restoration and protection of riverbanks, wetlands, and riparian forests; (iii) restoration of degraded and fragmented ecosystems; and (iv) livelihood diversification through environmentally sustainable alternatives within the Yuna and Yaque del Norte Watersheds. Possible negative impacts are expected to be site-specific, short-term, and reversible. Key environmental risks and impacts of the project, include: (i) loss or conversion of natural and semi- natural vegetated land to other types of land cover classes (if good practices in land restoration are not applied correctly); (ii) water overuse for seedling production in nurseries and sustainable rice production (even though this practice is expected to reduce the water needs by up to 60% compared to traditional rice production); (iii) introduction of invasive species through reforestation and/or agroforestry activities; (iv) potential contamination due to the use of agrochemicals and pesticides in rice production and agroforestry systems; and (v) occupational health and safety (OHS) hazards for the workforce due to the careless use of machinery and equipment and from apiculture For Official Use Only activities (exposure to bee venom and smoke, among others). The ESMF prepared for the project includes measures to manage these risks and impacts in accordance with the mitigation hierarchy and in an appropriate manner to the scale and nature of the activities. In addition, the ESMF includes an exclusion list of activities that are not eligible for finance. Social Risk Rating Substantial The proposed social risk rating for the project is Substantial. While the overall social benefits are expected to be positive, identified social risks and impacts include: (i) project workers exposure to the COVID-19 virus and transmission to local communities, (ii) transmission of the virus within local communities and beneficiaries, especially during workshops, (iii) economic displacement due to access restrictions as part of Component 3 that could impact vulnerable and resource dependent groups, (iv) conflicts over competing interests and demands of different land and water users (in light of water scarcity), (v) the need to consider tradeoffs between different stakeholder interests and warrant off elite capture and (vi) the COVID-19 pandemic poses a challenge for stakeholder engagement and Public Disclosure Public disclosure of information. No physical displacement is envisaged under the project. The project includes a strong focus on inclusive stakeholder engagement through the Stakeholder Engagement Plan (SEP), particularly regarding small producers, community/day/rotating workers, migrant workers (primarily Haitian), women and youth.

The Bank will review the Environmental and Social Risk Classification (ESRC) on a regular basis throughout the project life cycle to ensure it continues to accurately reflect the level of risk the project presents.

B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered

B.1. General Assessment

ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: This Standard is relevant.

Under Component 1, the project will retroactively finance immediate relief and response measures, which will include the procurement of different goods and services that may include: rental for private transport equipment, fuel payments, distribution of food/non-food items, PPE to affected populations, short term and long term sheltering,

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among others yet to be defined. Given the nature of these activities and through the adoption of appropriate E&S mitigation measures as described below, these activities are expected to have low to moderate risks and impacts. Project activities under Component 2 will include rehabilitation and reconstruction work of existing public and community infrastructure that was severely damaged/destroyed by the cyclones (expected to take place within existing/previous footprints), technical assistance related to infrastructure work, including survey and design for some high priority facilities requiring major renovation or new construction, and retroactive financing of urgent repairs to damaged public buildings and housing, temporary and measures to restore basic services and usage of public infrastructure such as bailey or modular bridges. These activities are expected to result in significant environmental and social risks and impacts. The risk management approach to be adopted, implemented, monitored, and supervised is detailed below. Component 3 will finance capacity building and institutional strengthening activities including the costs of equipment, services and small works necessary for the good performance of the agency’s tasks, policy design, and a financial support program for the reconstruction of private housing and technical assistance activities, including a pilot asset management of infrastructure consisting of criticality analysis, improved For Official Use Only technical/design standards, and preventative maintenance programs. Project activities under this component will be grounded in existing national laws and policies and the Bank’s Environmental and Social Framework (ESF).

The core project instrument to assess and manage environmental and social risks and impacts will consist of a project-level Environmental and Social Management Framework (ESMF). This ESMF will be developed, consulted and disclosed within 60 days of project Effectiveness (the draft ESMF has been both disclosed in-country and on the Bank’s website prior to Appraisal). The ESMF will include Environmental and Social Screening Checklists for risk classification of site-specific project activities, which will set forth the requirements for - site-specific Environmental and Social Impact Assessments (ESIAs) and Environmental and Social Management Plans (ESMPs) as deemed necessary based on the initial screening and risk classification. The ESMF will also include generic environmental and social risk procedures/codes of practice in line with the World Bank’s ESF and the WBG’s Environmental Health and Safety Guidelines and other good international industry practices that can be quickly and easily adapted and tailored

Public Disclosure Public to specific site-specific project activities and incorporated into site-specific ESMPs and bid documents, covering, among other aspects: construction management impact management such as noise, dust, vibrations, worksite housekeeping etc.; occupational health and safety, community health and safety, COVID-19 transmission prevention and response; debris management; hazardous materials management; traffic safety; worker camp management; GBV/SEA risk management procedures; a worker Code of Conduct; guidelines for universal access design in line with ESS4; and measures to avoid/mitigate potential impacts on natural habitats.

During preparation and prior to Project Effectiveness, the Bank will prepare a stand-alone Social Assessment as part of the Bank’s due diligence and in coordination with local IPAH organizations to assess current damages and provide detailed information, including differentiated impacts to other vulnerable groups, as well as vulnerable groups within the IPAH population. The Social Assessment will outline the commitments and inclusion mechanisms for IPAHs and other vulnerable groups, including socio-culturally relevant methodologies for participation in prioritization processes for infrastructure, participation in the design of housing models, and to promote the opportunities of job creation within the reconstruction efforts. The Social Assessment will provide a survey of the different donor and other financial institutions providing resources and aid to affected communities and will identify common areas of intervention and propose guidelines for an articulated and coordinated approach. The results and content of this Social Assessment are expected to inform and support the identification of risks in the ESMF and the IPADP described under ESS7 below.

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The ESMF will further detail institutional roles and responsibilities, monitoring and reporting requirements, and an estimated budget for environmental and social management, including capacity building measures. The ESMF will include a mapping of institutions in charge of GBV prevention and response that should be referred to, where relevant, in environmental and social assessments of each project activity, complemented by criteria for GBV training for key stakeholders, including municipal and ring-fenced provider staff. Site-specific ESIAs and ESMPs shall need to be consulted and disclosed locally before proceeding with the investment, and those developed for high risk project activities (as per criteria to be specified in the ESMF) will be carried out by independent consultants (separate from engineering design teams) and will also require prior review and approval by the Bank. Retroactive financing activities under Component 1 and 2 will meanwhile be subject to one or more an Environmental and Social Audits prior to approval for financing; the parameters and the TORs for the audit as well as both positive and negative lists of expenditures which may or may not be considered eligible from a social and environmental perspective will be agreed with the Bank and included in the Project Operational Manual. However, the preparation of these TORs will For Official Use Only be prioritized to accommodate the urgency to finance immediate relief and response measures. The TORs for the feasibility studies requiered by the Project will be reviewed by the Bank to ensure the requirements of the ESF are reflected accordingly. Additionally, the Bank will review the TORs for civil works' feasibility studies to ensure ESF requirements are reflected accordingly.

The draft Environmental and Social Commitment Plan (ESCP) prepared for the project includes all the measures and actions to ensure compliance with the ESF and the project’s E&S instruments, as well as related implementation details, including monitoring and reporting activities.

ESS10 Stakeholder Engagement and Information Disclosure

Public Disclosure Public The COVID-19 pandemic poses a challenge for stakeholder engagement and disclosure of information, as stakeholder engagement and consultation processes cannot be conducted as per normal ESS10 requirements. As long as COVID related restrictions place limitations on traditional forms of stakeholder engagement, the requirements of ESS10 will be met by implementing actions such as (i) avoiding public gatherings (taking into account national restrictions), including public hearings, workshops and community meetings; (ii) conducting consultations in small-group sessions, where small-group gatherings are permitted, or make all reasonable efforts to conduct meetings through online channels where gatherings are not permitted; (iii) diversifying means of communication and rely more on social media and online channels, including, where possible, the creation of dedicated online platforms and chatgroups appropriate for the purpose, based on the type and category of stakeholders; or (iv) employing traditional channels of communications (TV, newspaper, radio, dedicated phone-lines, and mail) when stakeholders to do not have access to online channels or do not use them frequently as these can also be highly effective in conveying relevant information to stakeholders, and allow them to provide their feedback and suggestions. These and other measures are set out in the World Bank's "Technical Note: Public Consultations and Stakeholder Engagement in WB-supported operations when there are constraints on conducting public meetings" (March 20, 2020).

Stakeholder engagement is at the core of project design, with a communication and awareness raising campaign as a central element. Throughout project preparation, the different project stakeholders have been actively engaged through interinstitutional workshops to align policies, objectives and incentives related to land use planning,

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multisector workshops on integrated landscape management and the development of sustainability indices. The main stakeholders are private and public sector governance institutions and organizations: small- and medium-sized producers; landscape committees; National Water Board (Mesa de Agua); the Interinstitutional Technical Group of Ministry of Environment and Natural Resources (MARN-GTI); local water committees (comités locales de agua); Extension and Capacity Building Service from the Ministry of Agriculture, MEPyD; and INDRHI.

MARN has drafted a Stakeholder Engagement Plan (SEP) for the project which outlines a) the key stakeholders (direct and indirect); b) how they will engaged; c) how often the engagement will occur throughout the project; d) how feedback and grievances will be solicited, recorded, responded to and monitored throughout the project duration; e) who will be responsible for this engagement; f) timeline for this engagement; g) budget and human resources, among other details. The SEP includes differentiated measures to allow the effective participation of those identified as disadvantaged or vulnerable, focusing on small farmers without linkages with formal organizations, migrant population and women. Dedicated approaches are required for communication with such differently affected groups For Official Use Only so they can obtain the information they need regarding the issues that will potentially affect them (positively or negatively). Appropriate communication material will be developed to ensure engagement with migrant workers (such as material in Haitian Creole). Dedicated workshops will be organized with women to ensure their participation in project activities and the promotion of women’s participation in management committees. The draft Stakeholder Engagement Plan (SEP) will disclosed prior to Appraisal and will be finalized, adopted and re-disclosed 30 days after project effectiveness.

B.2. Specific Risks and Impacts

A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions

Public Disclosure Public This Standard is relevant given the need for direct, contracted, community, or primary supply workers associated with project activities and investments. It is also expected that government civil servant personnel will be associated with the project. For government civil servants involved in project implementation and oversight, ESS 2 paragraphs 17 to 20 - Protecting the Work Force, and paragraphs 24 to 30 - Occupational Health and Safety are applicable. Labor influx related impacts are not expected. The number of workers is not known at this time. The Borrower has drafted Labor Management Procedures (LMP) as part of the ESMF. Through the LMP, the Borrower will promote transparency in terms and conditions of employment, nondiscrimination and equal opportunity, and establish a GRM for Project Workers. The ESMF includes an OHS Plan in line with the World Bank Group EHS Guidelines to ensure the health and safety of workers during project implementation and which includes requirements of the use of Personal Protective Equipment (PPE), emergency preparedness, and response procedures. Key OHS hazards associated with Components 2 and 3 include: (i) musculoskeletal injuries through repetitive motions in awkward positions; (ii) injuries due to the use of equipment and machinery; (iii) respiratory distress; (iv) noise-induced hearing loss; (v) exposure to pesticides and other hazardous chemicals, among others. Site-specific ESMPs to be prepared during implementation will include specific OHS measures in accordance with the type of work/activity to ensure the health and safety of workers. These will be in line with the WBG EHS Guidelines and will comply with national regulations. To mitigate the risk of a spread of the COVID-19 virus, the ESMF also includes a COVID-19 Response Plan, which includes measures for infection control and prevention, as well as case management during the implementation phase of the project. The nature of the pandemic requires occupational health and safety (OHS) training in line with good international

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practice to be considered in all contracts with Project Workers. Training will be delivered in order to limit exposure to the virus, communicate provisions for treatment if exposed, and to avoid transmission to Project training beneficiaries. The project will not engage child or forced labor, as defined under ESS2.

ESS3 Resource Efficiency and Pollution Prevention and Management This Standard is relevant as there are potential sources of pollution from implementing the project activities under Components 2 and 3. The ESMF includes generic mitigation measures to prevent and minimize the environmental risks resulting from the implementation of these activities, and all site-specific ESMPs will be required to include these measures with more specificity. Some mitigation measures include the following:

Water: The project will have different water requirements for the plantation production and management stages. Water will be required for irrigation purposes during the plantation production stage (seedlings in nurseries) of For Official Use Only sustainable rice, coffee and cacao plants (agroforestry), and species for reforestation purposes. During the plantation management stage, water required for sustainable rice production is expected to be limited mainly because this improved practice is anticipated to reduce the water needs by up to 60%. Water for irrigation purposes is expected to be provided through existing irrigation schemes. Depending on the location of some of the existing irrigation schemes within these watersheds, there is the possibility that water will be retrieved from fed by dams (dam safety requirements are detailed in ESS4 below). The rehabilitation, modernization, and/or upgrading of existing irrigation systems is not is eligible for project financing. Water provision for the plantation management of agroforestry and reforestation activities is expected to be solely from rainwater. As such, these activities will be planned and carried out during the rainy season. During implementation, each subproject will further screen and assess water access and provision following the guidelines detailed in the ESMF. Specific mitigation measures, including water provision and usage, will be included in subproject ESMPs, as appropriate. The need for assessment of potential cumulative impacts of water use upon communities and the environment will be determined on a case by case basis, and the Bank will

Public Disclosure Public support MARN in the identifying and implementing appropriate mitigation measures. The findings of studies to be developed related to water under Component 1, will be considered in subproject ESMPs to be developed during implementation, and additional mitigation measures will be included in the ESMPs, as necessary.

Agrochemicals and pesticides: The project will minimize and control the use of low toxicity pesticides in project activities under Components 2 and 3 (seedlings in nurseries, sustainable rice production, agroforestry, and restoration) and promote the use of organic fertilizers to the extent possible. However, the procurement of pesticides is not allowed in the project. The ESMF includes mitigation measures to mitigate the risks from the use of agrochemicals and pesticides, and includes an Integrated Pest Management Plan (IPMP) to guide the use of ecologically-based pest control and support the safer and more efficient use of agrochemicals and pesticides in the project. These measures will guide the preparation of site-specific IPMPs as part of subproject ESMPs as needed. Regarding pollution due to the use of pesticides, the ESMF includes measures and best practices according to the WBG EHS Guidelines to reduce agricultural discharge to surface water through runoff of pesticides, agrochemicals, and manure or leaching of nitrogen into groundwater.

Waste management: Any waste generated by project activities will be disposed according to national regulations, this ESS, and WBG EHS Guidelines. The construction and operation of beehives may also incur in wood and oil waste that would need to be properly managed (materials needed for the construction of beehives will be obtained from

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certified timber suppliers). Organic waste will be managed as a productive asset for the elaboration of soil amendments (organic fertilizers). All other types of waste generation will be managed according to the requirements included in the Integrated Waste Integrated solid waste management plan as part of the ESMF. Site-specific ESMPs to be prepared during implementation will include measures for common and hazardous waste management, as necessary.

GHG emissions: As part of project preparation, an estimate of the project's greenhouse gas mitigation potential was prepared using the Ex-Ante Carbon-balance tool (EX-ACT) of the Food and Agriculture Organization of the United Nations (FAO). Over the 20-year period considered for the analysis, the gross GHG emissions from the project are expected to amount to 278,175 tCO2-eq, with the key sources being sustainable rice production and agrochemical inputs. However, when considering the emission in the without project scenario, the project will result in a net carbon sink of 531,409 tCO2-eq. The largest contributions to the expected emission reductions are expected to result from sustainable rice production practices (compared to traditional systems) by 253,483tCO2-eq, followed by carbon For Official Use Only sequestration in agroforestry systems equal to 212,795 tCO2-eq. The improved application of agrochemical inputs is also expected to result in emissions reductions equal to 49,233 tCO2-eq.

ESS4 Community Health and Safety This Standard is considered relevant given that project activities under Component 2 and 3 may expose communities to health and safety risks, especially to those communities that are immediately close to the project sites. These risks include exposure to pesticides and other agrochemicals, smoke and bee venom from apiculture activities, transmission of communicable diseases (such as COVID-19 and others). The ESMF evaluates potential community health and safety issues related to all project activities and outlines processes for detailed site-specific screening and management, as well as generic measures for ensuring community health and safety under the project. The project will include the promotion and training on health and safety matters, including on integrated pest management to

Public Disclosure Public secure the prevention of adverse health impacts among producers and adjacent communities. A risk factor is related to COVID-19 where poor community engagement practices, group trainings or mass gatherings of people could raise exposure risk to workers and beneficiaries, which could lead to further spread of the disease through the project. As mitigation measures, the Borrower will implement provisions to prevent or minimize the spread of COVID-19 to the community as detailed in COVID-19 Response Plan included in the ESMF and in accordance with the SEP provisions.

Taking into account that both watersheds are vulnerable to natural disaster risks, including coastal , potential earthquakes, hydrometeorological storms, and fires among others, the ESMF includes an Emergency Response Plan to address potential natural disaster events that may endanger the health and safety of the community. Site-specifics ESMPs will include procedures to manage and mitigate these risks accordingly.

The Standard's requirements related to dam safety are also applicable to the project, as water for irrigation purposes for plantation production and management required for Components 2 and 3 may depend on the storage and operation of existing dams located within the Yaque del Norte and Yuna watersheds. Since the exact location of project activities under Components 2 and 3 remains undefined at this stage, subproject ESMPs will require to carry out during implementation a further assessment of the sites, water sources, and dependence on dams. Upon the results of these assessments, and if determined that water for irrigation purposes relies on existing dam(s) or dams

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under construction (DUC), the project will be required to comply with paragraphs 8 to 13 of ESS4-Annex 1 Safety of dams.

ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement This Standard is relevant. The project will not involve the taking of land, although the Project restoration of biodiversity and hydrological services in critical ecosystem activities under Component 3 developed in the upper watersheds could result in access restrictions. The Borrower has prepared a Process Framework in line with ESS5 to address any potential economic displacement related to restrictions in access to resources. Components 2 and 3 of the Project include investments to support interventions with co-financing through other projects. Land planning activities included in Component 1 could imply the changes in land use planning however ESS 5 does not apply in such cases of land use planning or the regulation of natural resource use (ESS5, para. graph 8). Therefore, impacts For Official Use Only associated with planning measures are will be addressed through the ESA in relation to ESS1. It is expected that the planning process and methodologies will fully integrate the consideration of social impacts regarding relocation of rice production activities that would be displaced. Relevance of this ESS will be further assessed if the initial project design changes. A Process Framework (PF) has been drafted to cover impacts related to access restrictions. It will be finalized, adopted and disclosed 30 days after project effectiveness.

ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources This Standard is relevant as project activities will be implemented in environmentally sensitive areas for biodiversity conservation. The project has a multisectoral and integrated spatial approach at the landscape level targeting an area that encompasses the Yuna Watershed and some municipalities of the northern part of the Yaque del Norte Watershed. Both watersheds face severe forest degradation and soil erosion in the upper part affecting ecosystems

Public Disclosure Public services, as well as overexploitation of water resources and excessive use of agrochemicals in the middle and lower parts that compromise the productivity of rice crops (considered a strategic crop for food security) which require large amounts of water.

The project area encompasses a total of 37 National Protected Areas (25 in the Yaque del Norte and 12 in the Yuna watershed, respectively) of different national categories, including Strict Protection Area, National Parks, Natural Monuments, Natural Reserves, Habitat Management Areas, Scientific Reserves, Protected Landscapes, and Scenic Routes. In addition, one of the Protected Areas in the Yuna watershed (Manglares del Bajo Yuna National Park) is a designated Ramsar Site. This large subtropical coastal wetland with estuarine characteristics, a predominance of mangroves, and many watercourses is located in the Samana Bay, which hosts important biodiversity values. Multiple ecosystems hosting important biodiversity are present in both watersheds. The Yuna watershed (with a total area of 290,549 ha) connects ecosystems such as the Upper and Lower Montane Humid Forests to the important lowland coastal forests, wetlands, mangrove swamps, seagrass beds, and marine areas. The Yaque del Norte (with a total area of 689,113 ha) has a rich biodiversity with different types of ecosystems, including very humid and low montane forest, humid montane and low forest, very humid subtropical forest, subtropical humid forest.

Furthermore, this watershed is of great importance at a national level due to the ecosystem-provisioning services that they provide (several of the country's main rivers are formed in this watershed and have a direct contribution to

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the national water network). A rapid biodiversity screening of the project area through the Integrated Biodiversity Assessment Tool (IBAT) identified a total of 1955 species present in the two watersheds, of which 80% are birds, 14% are amphibians, 3% are plants, and 2% are mammals. About 86.6% of these species are classified as of least concern, 2.5% are near threatened, 3.4% are vulnerable, 1.9% are endangered, and 1.27% are critically endangered, according to the Red List of Threatened Species of the International Union for Conservation of Nature (IUCN) (4.43% were not recognized by IBAT). In addition, the project area is important for bird conservation with a total of 8 Important Bird Areas (IBAs) (4 located in the Yaque del Norte and 4 in the Yuna watershed, respectively), which host a total of 1 critically endangered, 7 endangered, 34 vulnerable, and 14 near threatened bird species. It's worth noting that the Los Haitises's IBA located in the Yuna watershed, which hosts the Critically Endangered Ridgway's Hawk (Buteo ridgwayi), is also recognized under other international designations, such as the Alliance for Zero Extinction (AZE) sites. Through the promotion of sustainable agricultural practices and the restoration of degraded critical landscapes, the project is expected to have an overall positive impact on biodiversity conservation, forest management, and the provision of ecosystem services in priority areas within the two watersheds. Through the improvement of rice For Official Use Only production practices under Component 2, the project aims to lower the use of agrochemical and water usage, resulting in a reduction of agrochemicals in surface water runoff, improve water availability for other uses and preservation of ecosystems and the biodiversity they contain. Project activities under Component 3, are expected to reverse negative impacts through restoration programs in the upper watershed resulting in forest growth and carbon sequestration, recovery of aquifer recharge, and water availability. However, some project activities may pose a risk if they are not properly identified and mitigated, including (i) land use and land cover change from primary forests to agricultural plantations, silvopastoral systems and/or agroforestry systems; (ii) inappropriate selection of species for that do not consider the environmental characteristics (biodiversity, types of soil, water requirements, vulnerability of pest and disease) of the areas to be reforested; (iii) introduction of invasive species on reforestation and/or agroforestry activities; and, (iv) excessive and unnecessary use of agrochemicals/pesticides during plantation production and/or during rice production that could harm or be toxic to non-target living organisms posing a risk to habitats and biodiversity. Public Disclosure Public The ESMF includes mitigation measures to properly address these risks following the mitigation hierarchy and considering good practices in line with the WBG EHS Guidelines. The ESMF also includes Biodiversity Management Guidelines to provide guidance for biodiversity conservation and management in accordance with the requirements of this Standard. These measures will be considered during the preparation of subproject ESMPs during implementation, as necessary. The ESMF also includes an exclusion list of ineligible activities to be financed under the project, such as: (i) activities within natural protected areas that are not contemplated in their management plans; (ii) activities that promote land use changes from forestry to agriculture; (iii) conversion, deforestation, degradation, or any other alteration of natural habitats, among others. For project activities under Component 3, particularly those that include agroforestry systems and promotion of non-timber forest products, subproject ESMPs will need further assessment to determine how the requirements as set out in paragraph 35 (b) of ESS6 will be implemented and complied.

The findings of the studies to be prepared under Component 1, will be taken into account during the preparation of subproject ESMPs as appropriate.

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ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities The standard is not relevant. Previous safeguards assessments for World Bank supported Projects: “Resilient Agriculture and Integral Management of Natural Resources in the River Basins of Yaque del Norte and Ozama- Isabela” (P163260), “National Strategy for Reducing Emissions for Deforestation and Degradation” (P151752), and the “FCPF Carbon Fund Dominican Republic Emissions Reduction Program” (P161182), concluded that there are no distinct Indigenous Peoples in the Dominican Republic that fulfill the four characteristics indicated under OP 4.12, which is covered by paragraph 8 of ESS7.

ESS8 Cultural Heritage The standard is relevant. The project is not expected to have a negative impact on cultural heritage but a Cultural, Tangible and Intangible Heritage Protection Procedure was developed and included as part of the ESMF to be used in case of the identification or cultural heritage at site-specific ESMPs during implementation. For Official Use Only

ESS9 Financial Intermediaries The standard is not relevant. FI's are not part of this project.

C. Legal Operational Policies that Apply

OP 7.50 Projects on International Waterways No

OP 7.60 Projects in Disputed Areas No Public Disclosure Public

B.3. Reliance on Borrower’s policy, legal and institutional framework, relevant to the Project risks and impacts

Is this project being prepared for use of Borrower Framework? No

Areas where “Use of Borrower Framework” is being considered: None

IV. CONTACT POINTS

World Bank Contact: Rodrigo Martinez Fernandez Title: Natural Resources Economist

Telephone No: 5756+8271 / 57-1-3238271 Email: [email protected]

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Contact: Viviana Maria Eugenia Perego Title: Agriculture Economist

Telephone No: +1-202-473-9896 Email: [email protected]

Borrower/Client/Recipient Borrower: Ministry of Economy, Planning and Development

Implementing Agency(ies) Implementing Agency: Ministry of Environment and Natural Resources

V. FOR MORE INFORMATION CONTACT

For Official Use Only The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects

VI. APPROVAL

Task Team Leader(s): Rodrigo Martinez Fernandez, Viviana Maria Eugenia Perego

Practice Manager (ENR/Social) Maria Gonzalez de Asis Cleared on 09-Dec-2020 at 09:48:59 GMT-05:00 Public Disclosure Public

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