Southern Agricultural Growth Corridor of Tanzania (SAGCOT)
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Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Government of Tanzania Southern Agricultural Growth Corridor of Tanzania (SAGCOT): Environmental and Social Management Framework (ESMF) Public Disclosure Authorized August 2013 The world’s leading sustainability consultancy FINAL FRAMEWORK Government of Tanzania Southern Agricultural Growth Corridor of Tanzania (SAGCOT): Environmental and Social Management Framework (ESMF) July 2013 RFP Number: Pa/082/hq/S/Sagt/pmu/7 ERM Project Number: 0159588 For and on behalf of Environmental Resources Management Approved by: Eamonn Barrett Signed: Position: Partner Date: 07 July 2013 This report has been prepared by Environmental Resources Management the trading name of Environmental Resources Management Limited, with all reasonable skill, care and diligence within the terms of the Contract with the client, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client. We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk. Cover graphic: indicative map of SAGCOT prepared by SAGCOT Centre Ltd. ENVIRONMENTAL RESOURCES MANAGEMENT LIMITED INCORPORATED IN THE UNITED KINGDOM WITH REGISTRATION NUMBER 1014622 REGISTERED OFFICE: 2ND FLOOR, EXCHEQUER CRT, 33 ST MARY AXE, LONDON, EC3A 8AA EXECUTIVE SUMMARY PROGRAM AND PROJECT BACKGROUND AND DESCRIPTION The overall SAGCOT Program is broadly identified as a public-private partnership intended to improve the incomes, employment opportunities and food security of smallholder farmers across the southern corridor of Tanzania. This will be done by linking them to internationally competitive supply chains and accelerating commercial agricultural development, in particular by using foreign direct investment attracted by the removal of policy and infrastructural constraints to competitiveness and by facilitated access to land. The SAGCOT area lies along an existing road, rail and power corridor running from Dar es Salaam west through Iringa to Mbeya and beyond. Initially investments will be focused on six areas with high potential for quick agricultural development ("clusters"), including the Kilombero Valley. Over the next 20 years the initiative aims to bring 350,000 ha of land into commercial production, increase annual farming revenues by US$1.2 billion, and lift some 450,000 farming households out of poverty. PROPOSED WORLD BANK SUPPORT TO SAGCOT The Government of Tanzania (GoT) has requested support from the International Development Agency (IDA, part of the World Bank) to finance projects in the SAGCOT area through the Catalytic Fund related to strengthening smallholder-business linkages (see Component 2 below). The proposed World Bank support ("the Project") will be in the form of a Specific Investment Loan (SIL). The Project comprises three focused components within the overall SAGCOT Program: Component 1: Strengthening of SAGCOT Support Institutions (total US$16.3 million, IDA US$8.5 million). The objective of this component would be to strengthen the capacity of the main SAGCOT support institutions in order to pursue their functions of information and data provision, support of investment planning and guidance, government/private sector intermediation, business enabling environment and investment promotion. Component 2: Strengthening Smallholder-Business Linkages (total US$74.0 million, IDA US$46.3): The objective of this component would be to link smallholder farmers in agricultural value chains. The component would (a) expand the number of smallholders linked to agribusinesses in successful commercial partnerships and (b) improve the revenues derived by smallholders and rural communities from these partnerships in the form of growth in agricultural productivity growth, income and employment. Component 3: Project Management and Evaluation (total US$2.2 million, IDA US$2.2 million): The component would establish project management and M&E systems and provide office equipment, transportation and technical assistance services. It would support the coordination between implementation agencies at all levels and with other government programs and institutions and the capture of implementation lessons from development of value chain development. It would also include support for establishing and operating the project’s progress and impact M&E system. WORLD BANK SAFEGUARD REQUIREMENTS AND ESMF OBJECTIVES The World Bank-financed Project has triggered World Bank OP 4.01: Environmental Assessment, OP 4.04: Natural Habitats, OP 4.36: Forests, OP 4.09: Pest Management, OP 4.10: Indigenous Peoples, OP 4.12: Involuntary Resettlement, OP4.11: Physical Cultural Resources, and OP 4.37: Safety of Dams. In order to satisfy the requirements of the World Bank’s OP 4.01 (Environmental Assessment), the following documents have been prepared: (i) an Environmental and Social Management Framework (presented herein); (ii) a Resettlement Policy Framework (RPF); and (iii) a Stakeholder Analysis, Participation and Consultation Plan; (ii). Additionally a Strategic Regional Environmental and Social Assessment (SRESA) of the SAGCOT Program has been prepared and is currently being finalized ) ENVIRONMENTAL RESOURCES MANAGEMENT ESMF - SAGCOT i The objective of the ESMF is to outline the mandatory procedures to be applied to the World Bank- financed SAGCOT Project investments to ensure the effective management of associated environmental and social issues. It seeks to both enhance environmental and social development benefits of the project and mitigate any adverse impacts, in line with GOT and World Bank policies and guidelines on management of environmental and social issues. Since the precise locations and potential impacts of future subprojects are not known, and cannot be identified prior to appraisal, the ESMF provides the basis for the environmental and social preparation needed for the subproject investments to be supported under Component 2. Most of the investments that are being financed by the World Bank are expected to have moderate environmental and social impacts, but some of the investments may have significant impacts and thus the project is Category A for Environmental Assessment. The ESMF comprises a main body with supporting information assembled into several annexes. The main body of the ESMF (a) establishes clear procedures and methodologies for the environmental and social assessment, review, approval and implementation of investments to be financed under the SAGCOT Catalytic Fund (Component 2); (b) specifies appropriate roles and responsibilities and outlines the necessary reporting procedures for managing and monitoring environmental and social concerns related to Project investments; (c) determines the training, capacity building and technical assistance needed to successfully implement the provisions of the ESMF; and (d) proposes a budget to implement the recommendations outlined in this document. The ESMF will apply to all SAGCOT supported investments funded under Component 2 only. Activities funded under Component 1 are not expected to trigger any safeguards policies, given their focus on institutional capacity building and do not include any civil works. That said, Component 1 capacity building activities will include efforts to improve environmental and social management within project agencies. The annexes contain relevant material referenced throughout the document. The Operational Tools and Guidelines provide the resources needed for implementing the Catalytic Fund Subproject Environmental and Social Review, Appraisal, Monitoring and Reporting Process. Regarding resettlement, since the extent and location of project investments is not known at this time, and any potential resettlement will only be identified when sub-projects are being assessed, the RPF establishes the resettlement objectives and principles, organisational arrangements and funding mechanisms for any resettlement associated with the World Bank-financed SAGCOT Project. In order to evaluate the environmental and social issues associated with the broader SAGCOT Program, the overarching objective of the SAGCOT SRESA is to improve the investment decisions of all the different stakeholders by identifying environmental and social issues (both opportunities and constraints) and mainstreaming them into the development planning process. The SRESA aims to look at broader cumulative impacts associated with the broader SAGCOT Program, along with other ongoing activites within the Project Area. Toward this aim, the SRESA includes a scenario analysis of more detailed environmental and social issues in one prominent cluster (the Kilombero Cluster) in order to: i) identify potential Program and Project impacts; ii) highlight areas where future work is needed to manage those impacts; and (iii) iii) develop an initial database for monitoring project- related agribusiness investment impacts in the Corridor. The scenario assessment and monitoring approaches may be applied to a broader range of investment clusters by the SAGCOT Centre and related government authorities. ENVIRONMENTAL AND SOCIAL CONTEXT The southern corridor covers approximately one third of mainland Tanzania and is aligned east-west along a backbone