UGANDA: Investing in Forests and Protected Areas for Climate Smart Development Project Draft Environmental and Social Management Framework January 13, 2020 i EXECUTIVE SUMMARY Project Background: Uganda’s natural forests are being lost and degraded at one of the highest rates in the world despite their importance for tourism and role they play in supporting other natural resource-based activities. The total net loss of Uganda’s forests between years 2000-2015 was estimated at 1.8 million ha, making an average annual loss rate of 4%. The drivers of forest loss and degradation include; agricultural expansion, wood extraction for energy, increased urbanization due to high population growth, free grazing animals and wildfires. Although Uganda has a legal and policy framework to protect forest and other wildlife areas, implementation has been weak and forest laws are unevenly enforced. In order to conserve and sustain forest cover, Government of Uganda has designed the Investing in Forests and Protected Areas for Climate Smart Development Project that will be financed by World Bank (WB) and Government of Uganda (GoU). Project implementation is led by the Ministry of Water and Environment (MWE), jointly with the Ministry of Tourism, Wildlife and Antiquities (MTWA), Uganda Wildlife Authority (UWA), and National Forestry Authority (NFA). Overall, the proposed project is expected to have environmental and social impacts that are highly positive. Consistent with the intent and approach of the REDD+ program, this project contributes to reduced deforestation and forest degradation within target landscapes of Uganda. It will also promote and improve the following: forest management and restoration; management and conservation of protected forest areas and adjacent landscapes; sustainable management of community forests and other wooded landscapes; and enhance livelihoods and economic opportunities for communities and businesses. Project Development Objectives: To improve sustainable management of forests and protected areas and increase benefits from forests in target landscapes. Methodology: This ESMF has been developed based on literature review and stakeholders’ consultations. Reviewed documents include those that comprise the policy and legislative framework for the Government of Uganda (GoU), the World Bank’s Environmental and Social Standards (ESS)1, the World Bank’s Country Partnership Framework2 (CPF), the World Bank’s assessment of country systems for environmental and social risk management 3 , the Gender Analysis report 4 , the Process Framework draft report 5 and District Development Plans, Management Plans for Central Forest Reserves, Management Plans for National Parks and 1 The World Bank (2017). ENVIRONMENT AND SOCIAL FRAMEWORK 2 World Bank (2016). Country Partnership Framework for the Republic of Uganda for the Period FY16-21 3 World Bank (2019). Assessment of Uganda’s Country Systems for the Management of Environmental and Social Risks and Impacts throughout the Project Cycle. July 25, 2019 4 A Gender Assessment Note (14 December 2019). Uganda Investing in Forests and Protected Areas for Climate-Smart Development Project (P170466) 5 The Process Framework draft report ii Wildlife Reserves, 630 Stakeholders Engagement Reports from different levels such as relevant Ministries, Government Agencies, District Local Government, CSOs, NGOs, and World Bank as elaborated in table 10 in chapter 9 of this ESMF report. Location of the Project Area: The Project’s geographical focus is on selected priority areas in western and northwestern Uganda, which includes the Albert Water Management Zone (AWMZ) and West Nile part of Upper Nile Water Management Zone. Component 3 of the project, which focusses on issues linked to host communities and refugees, will be implemented in 17 districts, in Albert Rift (Hoima, Kagadi, Kakumiro, Kamwenge, Kibaale, Kikuube, Kiryandongo, Kyegegwa) and West Nile (Adjumani, Amuru, Arua, Koboko, Lamwo, Madi Okollo, Moyo, Obongi, and Yumbe). Project Components: The Project will focus on four main components, namely; i) Improved management of protected areas; ii) Increased revenues and jobs from forests and wildlife protected areas; iii) Improved landscape management in refugee hosting areas; and iv) Project management and monitoring. Baseline Environmental and Social Information: Baseline information for the Project area has been discussed in three main categories namely physical (topography, soils, geology, hydrology and climate), biological (flora, fauna and protected areas) as well as the socio-economic environment (population, and economic activities) for all districts that have been earmarked for implementation activities under component 3. It was not possible to discuss project areas for component 1 and 2 because specific areas for some activities have not been identified at this time of writing this report. Hence such areas will be studied in detail during preparation of site specific ESMPs. Policy, Legal and Institutional Framework: Both the World Bank Environmental and Social Framework (ESF) and the relevant GoU legislation relevant to the Project have been considered in relation to the applicable policy, legal and administrative framework within which this ESMF has been prepared. The Government of Uganda in close collaboration with The World Bank and other development partners undertook a comprehensive country systems assessment for management of environmental and social risks and impacts throughout projects7. Although the assessment is not specific to forestry and climate change-related projects, it is noted that Uganda has adequate policies and laws regarding management of environmental and social risks/impacts. However, there are constraints on the implementation of the policies and laws due to a lack of legal provisions for ensuring effective implementation and enforcement, and by inadequate capacity for ensuring that environmental and social issues are properly addressed. 6 TABLE 10: LISTING ALL STAKEHOLDER ENGAGEMENTS THAT HAVE TAKEN PLACE SINCE 2016 7 World Bank (2019). Assessment of Uganda’s Country Systems for the Management of Environmental and Social Risks and Impacts throughout the Project Cycle. July 25, 2019 iii Stakeholders Engagement: Meaningful engagement with stakeholders is necessary for project implementation and sustainability. Engagements to date have been guided by ESS 10 Stakeholder Engagement and Information disclosure. Guidelines for inclusion and working with stakeholders including those with disabilities, have been discussed. The project has had extensive stakeholder engagement from early stages of the project identification and preparation, with project affected parties and other interested parties, including Batwa indigenous peoples. Stakeholders included beneficiary populations and communities, district technical officers and politicians from lower level local councils (LCs) to Constituency (LC1), officials at the Water Management Zone level, stakeholders from key sectoral ministries at thecentral level, and Members of Parliament (MPs). Application and screening of activities The ESMF has outlined mechanisms for the screening of proposed project activities and identified potential environmental and social impacts and their subsequent management. The ESMF also describes the working arrangements between the project implementing institutions and other relevant institutions for the implementation of proposed risk measures and indicated requirements for institutional capacity building. Grievance Redress Mechanism (GRM): ESS10 requires establishment of a functional GRM for each project, for an effective avenue for expressing concerns and achieving remedies for communities to ensure sustainability of the Project. The Project GRM will be augmented by the World Bank’s Grievance Redress Service, which provides an easy way for Project-effected communities and individuals to submit World Bank projects related complaints. Potential impacts and mitigation measures: The positive impacts of this project outweigh the potential negatives impacts. These include; ecosystem services benefits; improved law enforcement; direct project benefits to local communities; creation of employment; reduced costs/risks in restoration of the protected areas; and climate change effect managed/avoided. Negative impacts identified include possible impacts due to establishment of tree nurseries and afforestation through small plantations and localized impacts within protected areas where small infrastructure (such as park gates, buildings, patrol stations) are to be built. They also include those associated with the anticipated civil works (labor influx impacts on host and refugee communities, social exclusion, exacerbation of gender issues, etc.). Stakeholder consultations identified the need to engage and include Batwa indigenous peoples in the management of conservation areas to which they have cultural attangement, particularly through enhanced engagement in existing and expanded collaborative forest management and collaborative resource management groups. A preliminary Vulnerable and Marginalized Groups Framework has been prepared to address issues related to the Batwa engagement. Vulnerable and Marginalized Groups Plans will be prepared for specific sites as part of the planning of detailed implementation activities. The assessment also identified potential gender discrimination and marginalization of some vulnerable groups in the iv region. Mitigation measures have been proposed following ESF mitigation