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THE GOVERNMENT of PAPUA NEW GUINEA Public Disclosure Authorized

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THE GOVERNMENT of PAPUA NEW GUINEA Public Disclosure Authorized E2311 V1 THE GOVERNMENT OF PAPUA NEW GUINEA Public Disclosure Authorized PRODUCTIVE PARTNERSHIP IN AGRICULTURE PROJECT (PPAP) DRAFT ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK Public Disclosure Authorized Volume 1 December 5, 2009 Public Disclosure Authorized Public Disclosure Authorized Page | ii Contents Executive Summary ..............................................................................Error! Bookmark not defined. 1.0 Introduction .......................................................................................................................................1 2.0 Description Of The Proposed Project................................................................................................4 3.0 Baseline Data...................................................................................................................................10 4.0 Description Of World Bank Environmental And Social Safeguards Policies And Triggers ..........22 5.0 Administrative, Policy, Legislative And Regulatory Framework...................................................28 6.0 Environmental Management Plan ...................................................................................................34 7.0. Institutional Assessment and Framework For Environmental And Social Management...............58 8.0 Environmental and Social Planning, Review and Clearing Process For PPAP ..............................60 9.0 ESMF Implementation Budget........................................................................................................63 Annex 1: Verification of Safeguards Policies triggered by PPAP Sub .................................................64 Projects..................................................................................................................................................64 Annex 2: Outline for an Environmental and Social Impact Assessment Report...................................67 Annex 3: Guidelines for an Environmental and Social Management Plan ...........................................69 (ESMP)..................................................................................................................................................69 Annex 4: Environmental And Social Screening Form..........................................................................70 Annex 6: Generic Guidelines for Preparing and Implementing a Public..............................................75 Consultation Plan for an ESIA..............................................................................................................75 Annex 7: Environmental And Social Appraisal Form (ESAF)............................................................77 Annex 8: Environmentally Sensitive Areas (ESA’S) And Ecosystems In PNG...................................80 Annex 9: Provision of a TOR for the Environmental Specialist..........................................................81 List of Tables Table 1: Temperature and Rainfall of the PPAP provinces ..................................................................11 Table 2: Major Soil Orders in PNG.......................................................................................................13 Table 3: Endemicity of land and freshwater vertebrates of PNG..........................................................14 Table 4: Herpetofauna (native species) of Papua New Guinea.............................................................17 Table 5: Some Economic, Social and Environmental Indicators for PNG ...........................................21 Table 6: Summary of the Requirement of Bank Safeguard Policies triggered by the PPAP................27 Table 7: Sample of Feeder Roads in EHP & ARB for Environmental Screening Purposes................36 Table 8: Description of the sub projects in the PPAP ...........................................................................43 Table 9: Proposed Mitigation and Monitoring Measures for Coffee and Cocoa ..................................45 Table 10: Propose Mitigation and Monitoring Measures for Minor Roads and Paths..........................47 Table 11: Proposed Mitigation and Monitoring Measurs for Wharves and Jetties...............................55 Table 12: Potential PPAP Sub Project Types, Environmental & Social Concerns and Probable Category* ..............................................................................................................................................61 List of Figures Figure 1: Department of Agriculture and Livestock Structure................................................................1 Figure 2: EIA Process in PNG ..............................................................................................................30 Figure 3: Regulatory Streams under the Environmental Act 2000 (DEC 1996)...................................32 Page | iii Page | 1 1.0 Introduction Background Following the Government of Papua New Guinea’s (GoPNG) request for World Bank support to the agriculture sector, the GoPNG and the World Bank agreed in March 2008 on the concept and the outline of the proposed PNG Productive Partnerships in Agriculture Project (PPAP). In April 2008, the Secretary for DNPM formally confirmed by letter, on behalf of Government, its endorsement of the project concept. Project preparation was carried out in 2009 and the ESMF is one of the instruments prepared to support the implementation of the PPAP. The proposed PPAP will be one of Government’s programs contributing towards the goals of PNG’s National Agriculture Development Plan (NADP) and complementing other government initiatives. The focus of the PPAP is on the coffee and the cocoa industries, given their strategic importance for the rural economy and in view of the challenges that those industries are facing. Within those two major industries, the proposed PPAP would provide, over several years, the predictable and continued support required to implement some of the structural changes necessary to improve their performance and sustainability – and maintain their competitiveness in global markets- by strengthening core institutions and improving the delivery of support services and infrastructure for smallholders. The development objective of the proposed project would be to improve the performance and the sustainability of value chains in cocoa- and coffee-producing areas, in order to improve the livelihoods of smallholder cocoa and coffee producers. This would be achieved through strengthening industry coordination and institutions, expanding and strengthening linkages between smallholder farmers and agribusiness for the provision of technologies and services, and through the provision of critical market access infrastructure. Key outcomes would be that: (i) smallholder farmers adopt efficient, market responsive and sustainable production practices leading to an increase in their income; (ii) demand-driven productive partnerships are established with the help of public support; and (iii) key infrastructure bottlenecks in the targeted value chains are addressed. The proposed project would include the following components: Component 1: Institutional strengthening and industry coordination Component 2: Productive partnerships Component 3: Market access infrastructure Environmental and social safeguards instruments Component 2 and 3 of the PPAP follow a demand-driven approach and therefore the specific locations of PPAP activities are not known at the time of project preparation. Hence, the laws of the Independent State in Papua New Guinea and Operational Policy 4.01 of the Bank require the Government of Papua New Guinea (GoPNG) to prepare an Environmental and Social Management Framework (ESMF). The ESMF establishes the guidelines and procedures to be followed to determine and assess future potential environmental and social impacts of activities to be financed under PPAP, and then to set out mitigation, monitoring and institutional measures to be taken during implementation and operation of the project to Page | 2 eliminate, offset, or reduce any potentially adverse environmental and social impacts to acceptable levels. Furthermore, in compliance with the World Bank’s OP 4.12 on Involuntary Resettlement, GoPNG has prepared a Compensation Policy Framework (CPF). The CPF constitutes volume 2 of this ESMF The GoPNG is further required to disclose both documents (the draft and final ESMF and CPF) in country as two separate and stand alone documents so that they are accessible by the general public, local communities, potential project-affected groups, local NGOs and all other stakeholders. The draft and final documents will also be disclosed at the Infoshop of the World Bank. Finally, as per World Bank policy OP4.09, Government is also required to prepare an Integrated Pest Management Plan (IPMP). The IPMP constitutes volume 3 of this ESMF. Structure of the ESMF The ESMF consists of three volumes: (i) This volume (volume 1) (ii) The CPF (volume 2) and (iii)The IPMP (volume 3). The key highlights in this volume of the ESMF (volume 1) are as follows: a) Environmental and social baseline data which will provide the basis for the environmental and social management process. The information contains data on Papua New Guinea's bio-physical environmental features such as its climate, geology and geomorphology, soils, flora and fauna, protected area, wildlife management areas and critical habitats. On social aspects, the report discusses the main features of Papua New Guinea's population, political
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