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E-841 V. June 2003 Public Disclosure Authorized

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E-841 V. June 2003 Public Disclosure Authorized E-841 V. June 2003 Public Disclosure Authorized , - - Public Disclosure Authorized Public Disclosure Authorized Social and Environmental Assessment Final Report .7-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. Prepared for: Ministry of Tourism, Environment and Natural Resources, Zambia The World Bank Public Disclosure Authorized June 2003 HABICO Planning + Architecture Ltd. i I I I I I i I I I I SEED Project - Social and Environmental Assessment Zambia SEED Project Social and Environmental Assessment Executive Summary Introduction The Government of the Republic of Zambia (GRZ) and the World Bank are cooperating to develop a project in support of economic expansion and diversification - the SEED Project. This Social and Environmental Assessment is among a number of pre-appraisal assessments required to ensure compliance with World Bank policies, GRZ development goals and strategies, and confirm the most effective use of the proposed credit facility. HABICO Planning + Architecture Ltd. was contracted by the GRZ in late April 2003, through the Ministry of Tourism, Environment and Natural Resources (MTENR), to undertake this Assessment for completion by 30 May 2003. Objective The overall objective of this Assessment is to: Develop and provide a clear and systematic process for the effective assessment of any potential environmental and social impacts that may result from the proposed project activities ensuring full compliance with applicable Zambian laws as well as the World Bank's Safeguard Policies. The results of the Social and Environmental Assessment will be an integral part of project formulation and implementation to improve results. Methodology A 4-person consulting team (2 foreign, 2 local) completed the work in Zambia through a combination of document review, field assessment and personal interviews, both formal and informal with as wide a range of potential stakeholders as possible. SEED Project SEED is a multi-component project including support to: * Tourism * Agribusiness Linkages * Gemstone Mining Sector * Small and Medium Enterprise Investment Fund Assessment For each of these components the Assessment established the context, identified potential issues and impacts, both negative and positive, and prepared a recommended list of mitigation actions for negative impacts, and supporting actions for positive impacts. A proposed Monitoring Programme is put forward along with checklists to screen activities in the Agribusiness component and during the processing of applications for SME funding. Impact Summary In summary, SEED has the potential to generate a large number of positive impacts assuming the recommended supporting actions are implemented. A number of potential Govemment of the Republic of Zambia/Wodd Bank j HABICO SEED Project - Social and Environmental Assessment negative impacts are identified, but all can be relatively easily mitigated. What is important at this point is to be aware of negative possibilities and ensure that the appropriate mitigating actions are commenced in the detailed Project Design and Implementation stages. In this way, the majority of potential negative impacts can, in fact, be turned into positive developments. Summary Recommendations Detailed recommendations for mitigation and support actions are provided throughout this Assessment and need not be repeated here. However, a number of overriding and cross- cutting recommendations should be highlighted. 1. Institutional Coordination The need for serious work on creating some form of integrated and coordinated institutional forum is essential in Project areas to ensure that a full range of stakeholder interests are considered in the planning, implementation and management of the Project and related activities. This must rise above the separate agendas of individual agencies. Coordination and integration is the first perquisite to implementing all of the recommended mitigation and supporting actions put forward in this Assessment. 2. Mitigation, Support and Monitoring This Assessment, and presumably those to follow, contain a significant number of recommended mitigation actions, support activities and monitoring programmes. To ensure success of the SEED Project, and achieve maximum benefit from the investment, it is strongly recommended that the appropriate institutional arrangements be made, and resources allocated, to ensure they are, in fact, implemented. 3. Consuftation Programmes One of the biggest threats to Project success is a lack of stakeholder consultation beginning at the very earliest stages of the Project and continuing on an ongoing basis throughout. Although a series of initial information sessions was reportedly held during SEED preparation, many feel the process was a one-off exercise, excluded many interested parties, and has not continued with regular updates. Consultation must be more than one-way information presentations and should provide ample opportunity for stakeholder inputs to shape the final product. 4. Communication Strategy A communication strategy should be an integral part of ongoing stakeholder consultation. This should be developed early and take the form of regular Project Newsletters to stakeholders, radio and TV broadcasts, newspaper coverage, community workshops, and a variety of other media. The SEED Project is sufficiently complex and wide-ranging that community confusion and misunderstanding is likely. 5. Project Coordination There are a number of related development initiatives either planned or underway in the various Project areas. SEED and the other projects can mutually benefit by ensuring that activities are integrated, adjusted as necessary, and complementary. Govemment of the Republic of Zambia/World Bank j HABICO SEED Project -Social and Environmental Assessment 6. Follow-Up Assessments There are admitted shortcomings to this Assessment due both to time allowed for the work, and the preliminary early stage of other Project components. This Assessment lacks detailed assessment of site-specific activities and an understanding of the magnitude of many Project activities, and, consequently, the magnitude of the resulting impacts. Detailed follow-up socio-economic and environmental assessments are recommended when Project details are confirmed. An important linkage must be made with the work of the separate Resettlement Action Plan, which is also constrained at the moment due to Project status. Government of the Republic of Zambia/World Bank j HABICO I I I I i I I II SEED Project - Social and Environmental Assessment Table of Contents Executive Summary .............................................. i 1. Institutional Coordination .. ii 2. Mitigation, Support and Monitoring.. ii 3. Consultation Programmes .. ii 4. Communication Strategy.. ii 5. Project Coordination.. ii 6. Follow-Up Assessments.. iii List of Abbreviations and Acronyms .......................... v Photos .......................... i 1.0 Introduction .. 1 1.1 Background ............................ 1 1.2 Objectives of the Assessment ............................ 1 1.2.1 Social Objectives ............................ 1 1.2.2 Environmental Objectives ............................ 1 1.2.3 Cross-Cutting Objectives ............................ 2 1.3 Scope of the Assessment .......................... 2 1.3.1 Geographic ............................ 2 1.3.2 Aspects Considered ............................ 2 1.3.3 Level of Detail ............................ 3 1.4 Layout of the Report .. 3 2.0 The SEED Project .3 2.1 SEED Project Objective .. 3 2.2 National Context .. 3 2.3 Developmental Context .. 4 2.3.1 Transitional National Development Plan (TNDP) 2002-2005 .............................. 4 2.3.2 Poverty Reduction Strategy Paper (PRSP) ...................................................... 4 2.3.3 Comprehensive Development Framework (CDF) ................................................ 4 2.3.4 Zambia Country Assistance Strategy (CAS) ...................................................... 4 2.4 Components ...................................................... 4 2.4.1 Tourism ...................................................... 4 2.4.2 Agribusiness Linkages ...................................................... 5 2.4.3 Gemstone Sector ...................................................... 5 2.4.4 Small and Medium Enterprise (SME) Investment Fund ....................................... 5 3.0 Institutional, Legal and Regulatory Context .. 6 3.1 Institutional Context ........................................................... 6 3.1.1 Residents of the Project Area ........................................................... 6 3.3.2 Ministry of Tourism, Environment and Natural Resources (MTENR) ................... 6 3.3.3 Ministry of Finance and National Planning (MFNP) ............................................. 7 3.3.4 Ministry of Local Government and Housing (MLGH) ........................................... 7 3.3.5 Ministry of Commerce and Industry (MCI) ........................................................... 7 3.3.6 Ministry of Lands (ML) .7 3.3.7 Deputy Minister's Office, Southern Province (DMSP) .7 3.3.8 Kazungula District (KD) .7 3.3.9 Livingstone District (LD) .7 3.3.10 Livingstone City Council (LCC) ,.7 3.3.11 Mukuni, Sekute, Musokotwane Traditional Communities .8 3.3.12 Livingstone Business District Association .8 3.3.13 Livingstone Chamber of Commerce .8 3.3.14 Private Sector Business Associations .8 3.2 Legal and Regulatory Context .......................................................... 8 3.2.1 The Constitution
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