Attachement 2 Public Disclosure Authorized GOVERNMENT OF MADAGASCAR VICE PRIME MINISTER FOR ECONOMIC PROGRAMS Integrated Growth Poles Project Environmental and Social Assessment Public Disclosure Authorized English Language Summaries of Environmental and Social Safeguards Instruments Public Disclosure Authorized Public Disclosure Authorized March 8, 2005 Attachment 2 Page 2 of 64 Environmental and Social Impact Management Framework (ESMF) With the financial support of the World Bank, the Government of Madagascar is planning to implement the Integrated Growth Poles Project (IGZP). This project consists of an extensive multi-sector development program that has to be carried out in three strategic regions of the country: the district of Nosy Be, the Antananarivo / Antsirabe axis and the district of Tolagnaro. The main initiatives planned within the IGPP framework include, among others, the setting up of export processing zones in the Antananarivo / Antsirabe sector, tourism development in Nosy Be and mining in Tolagnaro. Several other activities are planned in each of the poles, in particular the construction and rehabilitation of urban and port infrastructures. As the World Bank will be helping to finance the IGZP, the project must comply with the Bank’s safeguard policies to ensure that the planned investments will not have a major impact on the natural and human milieus. This environmental and social management framework (ESMF) defines the rules under which the subprojects within the IG2P will be evaluated. It also includes some direction for setting up a regional planning process that is respecfful of environmental and social concerns in the Project’s different growth poles. The ESMF objectives are to define the environmental and social evaluation process for the IG2P subprojects so as to respect the World Bank’s safeguard policies and Madagascar’s environmental laws, by ensuring that the most stringent of the requirements prevail. It should be noted that this ESMF constitutes one of the three policy frameworks of the IG2P, the two others being the policy frameworks for involuntary resettlement and cultural property. This ESMF begins by describing the context dictated by the Poverty Reduction Strategy, which constitutes the strategic basis for development planning in the country. The aim of this strategy is in effect to promote rapid, long-lasting development that will cut Madagascar’s poverty rate in half within 10 years. The organizational context of the IG2P and the frameworks for policies, laws and institutions are described one at a time below. It is important to properly understand all of these provisions, as they will have to be taken into account during the planning, evaluation and carrying out of these IG2P subprojects. Attachment 2 Page 3 of 64 jet Pales Intbgres de Cmissance VICE PRIMATWRE CHARGEE OES PRCGRPMMES ECONOMIQUES Data FIvrrer 2035 Projet 0513072 Location of the Growth Poles Attachment 2 Page 4 of 64 This ESMF continues by presenting the regional planning process proposed for the IG2P. The purpose of this process is to better integrate the environmental and social dimensions into the regional development and more specifically, into the medium- and long-term development endeavours in each of the poles. It also aims to rationalize future subprojects that have not been sufficiently defined within the growth poles. This step constitutes an absolute pre-requisite, in order to guarantee a certain amount of uniformity and cohesion of the development processes in the different growth poles, and to ensure that the proposals are technically consistent and that the parties concerned are supportive. Four main themes stemming from the Poverty Reduction Strategy have been chosen to structure the proposed regional planning process: (i) the State as catalyst for, and regulator of, development, (ii) the region as the driving force for regional integration, (iii) the urban district as the development engine, and (iv) the public-private partnership. These themes give rise to a series of guiding principles and guidelines. The regional planning in these IG2P growth poles will then be carried out using a methodical, practical approach. Following the recommendations on regional planning, the process for environmental and social evaluation of the IGPP subprojects is presented in detail in Chapter 7 of this ESMF. The aim of this process is to apply the World Bank’s safeguard policies and Madagascar’s environmental laws, by ensuring that the most stringent of the requirements prevail. This process has six stages: (i) screening, (ii) scoping, (iii) evaluating the environmental and social impact, (iv) appraisal of environmental and social studies, (v) environmental and social monitoring, and finally (vi) the environmental and social auditing. In particular, this process allows for verification of the applicability of each of the World Bank’s safeguard policies and the nature and the significance of the environmental and social studies to be conducted (impact study, resettlement plan, etc.). Attachment 2 Page 5 of 64 E IG2P Process for Screening and Analysis of Subprojects Attachment 2 Page 6 of 64 Resett Ieme nt PoI icy Framework ( RPF) The Government of Madagascar, in collaboration with the World Bank, intends to undertake a multi-sector development initiative in three key regions designated as “growth poles”: AntananarivolAntsirabe in the centre of the country, Fort-Dauphin (Tolagnaro) in the south and Nosy Be in the north. This effort, designated under the name Integrated Growth Pole Project (IG2P), is aimed at creating synergy among the different public and private participants around a priority area for intervention for each pole (Free-trade Export-processing Zones in Antananarivo/Antsirabe, mining in Tolagnaro (Fort-Dauphin) and tourism in Nosy Be). Technical studies and collaboration/consultation workshops have been conducted for the Project with a view to clarifying and confirming the sub-projects identified to date. It has also received environmental and social assessments so that the anticipated investments cause as little damage as possible and deliver the maximum advantages to the environment and to the population living in these regions. When the activities or sub-projects envisaged within the Project Framework were defined, all precautions were taken, as far as was possible, so that no-one would suffer, or no property would sustain, damage or loss during and following the implementation of the Project. Nevertheless, involuntary resettlement of populations will be inevitable for certain of the sub- projects identified to date. Thus the Government of Madagascar has prepared this Policy Framework for Resettlement (PFR) in compliance with its legislation and the requirements of the World Bank, in particular Operating Policy OP 4.12 relative to the involuntary resettlement of populations. The PFR establishes, among other things, the regulatory framework for Malagasy laws and the World Bank’s safeguard policies, principles for resettlement, operating procedures for awarding titles, eligibility criteria for people or groups of people affected, and applicable mechanisms for public consultation. The PFR will guide the development of Resettlement Plans (RP) that will be required for some sub-projects identified within the framework of the Project. The sub-projects identified for investment during the first year of implementation of the IG2P and that require the development of an RP are the following: Nosy Be ring road (Nosy Be regional pole) Attachment 2 Page 7 of 64 Repair of the urban section of RN13 (Fort-Dauphin regional pole) QMM mining project (Fort-Dauphin regional pole). A National Coordination Cell for the IG2P, possessing a legal and financial personality, was established by Decree No 2004 - 724 of July 20, 2004 dealing with the creation, organization and functioning of the National Coordination Cell for the Integrated Growth Poles Project. This Cell is jointly supervised by the Vice-Prime Minister for Economic Programs and the Minister of Finance. The Cell is the Preparation and Coordination Agency for the future Integrated Growth Poles Project, and is responsible for defining, implementing and monitoring preparatory activities for the Project. This is also the central vehicle for liaison among technical and financial partners, private and public partners and non-governmental organizations (NGO) associated with preparations for the Project. The guiding principles upon which this Policy Framework for Resettlement is based are as follows: Involuntary resettlement and the acquisition of land must be avoided, as far as is possible, or minimized as much as possible, by studying all viable alternatives in the design of the sub-projects; In cases where the acquisition of properties or livelihoods cannot be avoided, an improvement in the livelihoods of the people affected, or at least the re-establishment of those livelihoods, must be ensured in real terms, at the same level as before the resettlement or at the level prior to the implementation of the project, depending on whichever is more advantageous to them; In cases where resettlement or the acquisition of land cannot be avoided, particular attention will be paid to the needs of vulnerable groups among the people affected, as the Government of Madagascar acknowledges that certain economic, social, environmental and natural conditions may increase the vulnerability of people and households; The people affected must be consulted and have the opportunity to participate