Regional Economic Development Project

Kyrgyz Republic

Public Disclosure Authorized

Public Disclosure Authorized ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK

Public Disclosure Authorized

Bishkek December 2, 2019

Table of Contents LIST OF ABBREVIATIONS AND ACRONYMS ...... 4 EXECUTIVE SUMMARY ...... 5 1. PROJECT BACKGROUND AND SCOPE OF THE ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK ...... 13 1.1. PROJECT APPROACH AND POTENTIAL BENEFICIARIES ...... 13 1.2. PROJECT COMPONENTS AND PROPOSED INVESTMENTS ...... 14 1.3. SCOPE AND OBJECTIVES OF ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK ...... 17 2. ENVIRONMENTAL AND SOCIAL ASSESSMENT POLICY AND REGULATORY FRAMEWORK ...... 19 2.1. KYRGYZ REPUBLIC NATIONAL ENVIRONMENTAL LEGISLATION AND ESA PROCEDURES ...... 19 2.1.1. Constitution ...... 19 2.1.2. Natural Resources and Environment Legislation ...... 19 2.1.3. ESA Regulations ...... 21 2.1.4. ESA Standards ...... 21 2.2. LEGISLATION OF THE KYRGYZ REPUBLIC IN THE SPHERE OF SOCIAL ASSESSMENT, LAND ACQUISITION AND RESETTLEMENT ...... 23 2.3. LOCAL GOVERNMENTS OPERATE IN CLOSE COOPERATION WITH STATE AUTHORITIES TO CREATE CONDITIONS FOR THE IMPLEMENTATION OF THE CONSTITUTIONAL RIGHTS OF CITIZENS OF THE KYRGYZ REPUBLIC TO PARTICIPATE IN RESOLVING ISSUES OF STATE AND LOCAL IMPORTANCE.THE WORLD BANK ENVIRONMENTAL AND SOCIAL STANDARDS ...... 25 2.4. PROJECT RISKS ASSESSMENT ...... 33 3. NATIONAL ESA INSTITUTIONAL FRAMEWORK ...... 34 4. BASELINE ANALYSIS ...... 36 4.1. LOCATION AND SIZE ...... 36 4.2. PHYSICAL ENVIRONMENT ...... 38 4.3. TOPOGRAPHY AND DRAINAGE ...... 38 4.4. LAND USE ...... 39 4.5. BIOLOGICAL ENVIRONMENT ...... 39 4.6. PROTECTED AREAS ...... 40 4.7. SOCIO – ECONOMIC BACKGROUND ...... 41 4.8. CULTURAL HERITAGE ...... 43 5. SOCIO-ECONOMIC AND GENDER ANALYSIS ...... 45 5.1. DEMOGRAPHY ...... 45 5.2. INCOME ...... 45 5.3. GENDER ANALYSIS ...... 47 5.4. KEY BENEFICIARIES ...... 48 5.4.1. VULNERABLE OR DISADVANTAGED SUBGROUPS AMONG PROJECT BENEFICIARIES ...... 48 5.5. STAKEHOLDER SEGMENTATION/ PRIORITIZATION ...... 49 6. OPPORTUNITIES AND CONDITIONS FOR PARTICIPATION OF INTERESTED PARTIES IN THE DEVELOPMENT PROCESS ...... 50 6.1. CITIZEN ENGAGEMENT ...... 50 6.2. PROPOSED CITIZEN ENGAGEMENT MECHANISMS ...... 51 7. POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS...... 52 7.1 ADVERSE ENVIRONMENTAL RISKS AND IMPACTS ...... 52 7.2. ADVERSE SOCIAL RISKS AND IMPACTS ...... 70 7.2.1 OVERVIEW OF POTENTIAL SOCIAL RISKS AND IMPACTS ...... 70 EXCLUSION RISKS FACING THE PROJECT BENEFICIARIES’ SUB-GROUPS ...... 71 8. ENVIRONMENTAL AND SOCIAL ASSESSMENT RULES AND PROCEDURES ...... 82 8.1. Main stages of environmental and social assessment and the role of involved parties...... 82 8.1.2. ESA process: step-by-step ...... 82 8.2. Screening of sub-project activities and identification of ESA Instruments ...... 83 8.3. Types of ESA instruments and ESIA/ESMP Review Process ...... 85 8.4. Project Monitoring and Evaluation ...... 87 8.5. Screening Process in Land Acquisition and Resettlement ...... 87 8.6. Resettlement Policy Framework (RPF) ...... 88 9. ADDRESSING REQUIREMENTS UNDER ESSS ...... 90 10. MONITORING PLANS ...... 103 11. ESA REPORTING RESPONSIBILITIES ...... 104 12. INSTITUTIONAL ARRANGEMENTS AND CAPACITY FOR ESMF IMPLEMENTATION ...... 105 12.1 Project coordination ...... 105 12.2 Project Implementation Unit ...... 105

12.3 Beneficiaries and Contractors’ responsibilities ...... 105 12.4 ESA capacity building activities ...... 106 13. GRIEVANCE REDRESS MECHANISM ...... 108 13.1 Introduction ...... 108 13.2 World Bank Grievance Redress System ...... 108 13.3 Project GRM ...... 108 14. ESMF DISCLOSURE AND PUBLIC CONSULTATIONS ...... 110 14.1 ESMF DISCLOSURE ...... 110 14.2 ESMF PUBLIC CONSULTATIONS ...... 110 ANNEXES ...... 111 ANNEX 1. TYPES OF ECONOMIC ACTIVITIES SUBJECT TO EIA ACCORDING NATIONAL LEGISLATION ...... 112 ANNEX 2. PROPOSED LIST OF INVESTMENTS AND TA ACTIVITIES ...... 114 ANNEX 3. SCREENING OF RISKS CATEGORIES OF PROPOSED TYPES OF SUBPROJECTS...... 116 ANNEX 4. EXCLUSION LIST ...... 119 ANNEX 5. ENVIRONMENTAL SCREENING CHECKLIST - FORMS ...... 120 ANNEX 6. RESULTS OF ENVIRONMENTAL AND SOCIAL SCREENING ...... 125 ANNEX 7. ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT REPORT OUTLINE ...... 126 ANNEX 8. INDICATIVE OUTLINE OF ESMP ...... 128 ANNEX 9. ENVIRONMENTAL MANAGEMENT PLAN CHECKLIST (FOR SMALL SCALE CONSTRUCTION/REHABILITATION SUB-PROJECTS) ...... 130 ANNEX 10. ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN (ESMP) CHECKLIST FOR SMALL SCALE ROAD REHABILITATION PROJECTS ...... 136 ANNEX 11. IMPACTS, CAUSES, CONSEQUENCES AND MITIGATION MEASURES FOR SUB-PROJECTS IN AGRICULTURE PRODUCTION SECTOR ...... 145 ANNEX 12. IMPACTS, CAUSES, CONSEQUENCES AND MITIGATION MEASURES FOR SUB-PROJECTS IN AGRO- PROCESSING & FOOD PRODUCTION SECTORS ...... 164 ANNEX 13. SOCIAL SCREENING CHECK LIST ...... 174 ANNEX 14. ASBESTOS CONTAINING MATERIAL MANAGEMENT PLAN (EXAMPLE) ...... 176 ANNEX 15. HEALTH, SAFETY AND WELLBEING INSPECTION CHECKLISTS ...... 178 ANNEX 16. PEST MANAGEMENT PLAN ...... 192 ANNEX 17. MINUTES OF ESMF PUBLIC CONSULTATION ......

LIST OF ABBREVIATIONS AND ACRONYMS

ABCC Agri-Business Competitiveness Center АСМ Asbestos-containing materials ARAP Abbreviated Resettlement Action Plan ARIS Community Development and Investment Agency CC Civil Code DDR Due Diligence Report DMS Detailed Measurement Survey DSEI Draft Statement of the Environmental Impact EHS Environment, Health and Safety General Guidelines EIA Environmental Impact Assessment ES Environmental Specialist ESA Environmental and Social Assessment ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FS Feasibility Study GRM Grievance Redress Mechanism H&S Health and Safety HH Household IFIs International Financial Institutions IP Indigenous People IPM Integrated Pest Management IR Involuntary Resettlement LAR Land Acquisition and Resettlement LC Land Code MoAFIM Ministry of Agriculture, Food Industry and Melioration MoCIT Ministry of Culture, Information and Tourism MoH Ministry of Health NGO Non-governmental organization OHS Occupational and Health and Safety ОP Operational Policy PAP Project Affected Persons PCB Polychlorinated Biphenyl PCR Physical Cultural Resources PIU Project Implementation Unit POM Project Operational Manual PPE Personal Protective Equipment RAP Resettlement Action Plan RED Regional Economic Development Project RoW Right of Way RPF Resettlement Policy Framework SAEPF State Agency for Environmental Protection and Forestry SEE State Environmental Expertise SEI Statement of the Environmental Impact SIA Social Impact Assessment SIC State Investment Committee SS Safeguards Specialist TOR Terms of Reference USD United State Dollar WB World Bank WBG World Bank Group

Executive Summary

Project objective. The Project Development Objective (PDO) is to support the Government of Kyrgyz Republic (GoKR) to enhance regional economic development through targeted interventions in selected sectors in the Osh region. Project components and activities. The Project is composed of the following components:

Component 1: Strengthening Regional Economic Planning and Regulatory Functions (US$ 5.5 million). This component will comprise two sub-components: Sub-component 1.1: Enhancing Regional Economic Planning (US$ 1.5 million). This sub-component will support the development and implementation of a Regional Economic Development Plan. The Plan will seek to identify, inter alia, policies, priority actions and institutional requirements for effective integrated regional economic planning and development of the region and its main economic corridors. The plan will be developed by the subnational government and will focus on identifying opportunities to boost regional economic potential through inclusive, integrated and climate smart initiatives. Financing will also be allocated for specific capacity building opportunities for the staff of public institutions to enable them to better manage and promote the assets generated under the project and enable the private sector to offer improved services. Sub-Component 1.2: Improving basic agricultural services and regulatory functions (US$ 4.0 million). Financing will be provided to upgrade facilities located in Osh city and the region relating to food safety functions within the mandate of the MAFIM and other line ministries. This will include financing for laboratory equipment and upgrading of facilities at border control points and expanding sampling capacity at the district/rayon level. Investments will also finance upgrading food safety quality infrastructure in Osh city/region within GosStandard, Food Laboratory (Sanepidnadzor), Veterinary Service and small food safety laboratories in local markets. Financing under the project will also be channeled to upgrade seed certification and soil analysis functions in Osh in order to support investments in upgrading production and productivity in the second component. For the seed laboratory this will include upgrading the existing lab in Osh to achieve International Seed Testing Association (ISTA) certification. Similarly, targeted investment will be provided for Osh Technological University and Osh Agricultural College to upgrade their equipment base and to incorporate agricultural export markets requirements, food safety regulations, HAACP, and modern food processing technologies for short term and long-term training. Infrastructure investments will upgrade existing facilities and will be guided by a detailed feasibility assessment in the first year to refine technical specifications and design. Component 2: Strengthening Agri-Food Supply Chains and SMEs (US$ 25.5 million). This component will facilitate the development of partnerships between agri-businesses and small agricultural producers to finance targeted investments that improve quality and expand production/processing volumes. The component will utilize a value chain development or productive partnership approach that is based on facilitating and organizing producer groups to meet specific market requirements and link with buyers/aggregators or processing enterprises. Financing for activities within a partnership will take place through two windows. The first window is a public investments window that will finance public services and infrastructure critical to improving the functioning of the value chain targeted in the partnership. In particular, Window 1 will finance: (i) technical assistance and training for producers and other services around quality assurance, pest and disease control and food safety improvements; and (ii) public infrastructure rehabilitation (i.e. access road repairs, electricity infrastructure, and other agriculture related infrastructure) critical to functioning of the value chain. A second matching grants window will finance productive investments that introduce new technologies or support post-harvest processing capacity among individual producers or producer groups within the partnership. In particular, the matching grants window will finance investments related to the adoption of innovative technologies (particularly climate resilient or resource efficient technologies) including appropriate equipment, new crop or livestock varieties and farm inputs; and post-harvest facilities (such as facilities for storage, washing, grading, packing, pre-cooling, cold storage) for specific producer groups. Investments under the public investment window (window 1) will be 100 percent financed by the project. Matching grants (window 2) will be governed by additional grant agreements signed with direct recipients

and will be co-financed by farmers/producer groups at the level of 25 percent in cash or in kind. In the case of larger agri-business participants in the partnership (for example, processors or trade and logistic centers), cooperation will be in line with best practice principles for public-private cooperation and participants will be required to develop formal supply chain linkages to producers within the partnership. The overall budget limit for each public partnership supported under the project (the combined total of Window 1 and/or Window 2) would be $1 million. The ceilings for the matching grants window for individual producers may not exceed $10,000 per producer or, if awarded to the group and financing a group owned asset, may not exceed $200,000 per producer group. Component 3: Catalyzing investments for tourism and urban development (US$ 22.0 million). The sub-components are: Sub-component 3.1: Upgrading Osh and Uzgen Urban Cores and Tourism Circuits (US$ 19.0 million). For tourism development and urban regeneration, the project will finance infrastructure investments in the participating cities (e.g. Osh and Uzgen) and tourism circuits (e,g. Kara-Shoroo, Kyrgyz- Ata, Abshyr-Ata) to improve the tourism image of these areas and address the need for targeted, area-based urban upgrading and complementary infrastructure, services and connectivity, to improve livability. This will include investments in, inter alia, (1) enhancement of public spaces and upgrading of street networks and associated infrastructure; (2) adaptation and rehabilitation of selected cultural heritage and public buildings; (3) improvements in urban mobility and other urban infrastructure upgrading; (4) improvements in selected basic infrastructure and services that are part of larger networks when deemed necessary to address bottlenecks hindering urban functionality and/or complement the long-term functionality and increased effectiveness of area-specific urban upgrading efforts; (5) upgrading of vehicular, pedestrian and multi-modal accesses, including upgrading of bridges to reduce congestion points; (6) rehabilitation and improvements/modernization of trunk infrastructure, including water supply and sewage networks, where required; (7) support to solid waste management systems; (8) upgrading of storm water drainage systems, if necessary; and (8) preparation of necessary feasibility studies, detailed designs (including urban design studies), and construction supervision for the above listed activities. Sub-Component 3.2: Tourism Product Development, Marketing and Promotion (US$ 3.0 million). This sub-component will provide support to public entities at both the national and subnational levels, especially to: (1) the Department of Tourism (under the Ministry of Culture, Information and Tourism) for improved monitoring and evaluation, marketing and promotion of the Kyrgyz Republic as an emerging destination at the targeted international markets, (2) the Department of Tourism and the relevant regional government entities to develop a comprehensive tourism strategy for the Osh Region, which shall identify opportunities for sector development and offer solutions and a roadmap to address shortcomings; (3) the Kyrgyz Tourism State Enterprise for investment attraction, training and marketing; (4) public and private sector in Osh to improve destination management in Osh Region covering tourism marketing, promotion, local outreach campaign and media coverage, as well as tour packaging with bordering countries and tourism industries; (5) regional and local administrations to plan and implement cultural events for tourism development, (6) central, regional and local agencies to provide support with performance monitoring & evaluation activities (e.g. measuring tourist arrivals/number of visitors, spending, opinions, occupancy rates, increases in tourism-related investments, and gender aspects) and e-governance initiatives (e.g. an online platform/one-stop service center for tourists, or support to host application on the cloud services); (v) museum and national park administration to have set plans for sustainable site management of cultural and natural heritage; and (vi) other key tourism-related organizations/associations and the private sector representatives for skilled workforce development and capacity building. Component 4: Supporting Tourism and Rural SME Development through Small Grants (US$ 3.0 million). The project will support SME development through a training and small grant program targeting tourism and rural SMEs and startups. The small grants program will aim to support the launching of new enterprise activities in rural areas and diversification and expansion of tourism services. In tourism, small grants will be expected to improve the capacity, and the quality and range of services offered, which could result in inter-linked activities, inter alia, in the areas of gastronomy tourism and eco-tourism. The program will follow a phased approach, where the accommodation managers/staff, tour operators and tour guides will undergo a robust training program and those who will complete it successfully will be eligible to apply for financing. Other services providers and SMEs will be required to submit a sound business plan for their proposed activities. Technical support in business plan development will be provided by the project. Start-

ups financed under the program will be eligible for financing to scale-up their activities after the proven record of successful utilization of funds (presenting books, payment of taxes, generating employment, etc.). Component 5: Implementation Support, Monitoring and Evaluation (US$ 4.0 million) This component will support project implementation, including the project’s monitoring and evaluation system, communication strategy, application of safeguard instruments, training and financing of incremental operating costs of the PIE. Project location. Recognizing the multi-sectoral and integrated nature required for regional development, RED will help to focus support on one pilot region – Osh region, and include the city of Osh and the other identified growth poles1 and clusters within the region. The selection of Osh as the pilot region is based on the regional and spatial analysis which shows Osh as one of the key lagging regions, yet with abundant assets and potential. The challenges faced by Osh region includes low GDP per capita, low skilled labor, low market accessibility and low level of infrastructure and services. Hence RED intends to address these key challenges through interventions in infrastructure and services improvements, facilitating and targeting Small and Medium Enterprises (SMEs) development, as well as institutional strengthening in the two important economic sectors – agriculture and tourism with urban development as an enabler to regional and sectoral growth. Project potential environmental risks and impacts. The proposed project investments targeted at productive partnerships and development of agro-processor supply chain linkages, rehabilitation of sanitary and phytosanitary infrastructure and seed and breed multiplication facilities and support of agriculture supply chain may generate along with positive social and economic impacts (increased production, products and goods which would result in creation of new jobs and respectively, more employment and increased income; improving of business environment, introduction of advanced agricultural technologies and techniques, contribution to poverty reduction and food safety) and a series of environmental risks and impacts. These risks and impacts can be summarized as follows: (a) agricultural production: soil erosion, loss of soil productive capacity, soil compaction, soil pollution, surface and underground water pollution, loss of biodiversity; (b) agro-processing: contribution to surface water pollution, wastes generation, odor; (c) small scale construction and/or rehabilitation of the existing premises: soil and air pollution; acoustic, construction wastes, and potential asbestos issues, etc. Similarly, the proposed investments targeted at development of tourism and urban centers, infrastructure and public buildings construction and rehabilitation, as well as supporting tourist SMEs, may also generate, along with positive social and economic impacts (improvements to priority touristic sights and clusters; regional infrastructure and services/amenities to attract tourists and retain residents, and pilot public-private cooperations to support and strengthen SMEs in the tourism sector) a series of environmental risks and site specific, and temporary impacts, such as noise, dust, increased pollution with solid wastes, air and water pollution, potential asbestos issues, potential impacts of physical cultural heritage resources, etc., as well as entail health hazards and labor safety risks. Some indirect environmental impacts might be generated under the proposed TA activities, in particular for preparing site development concepts, detailed subproject designs for the selected priority investments in agriculture and urban development sector, as during the implementation phase, if the designed urban development and/or agriculture business development planning documents, didn’t integrate the safeguards requirements, can generate a series of adverse environmental impacts and risks.

Project environmental risk rating. Overall, most of identified environmental risks and impacts are expected to be typical for small scale construction/rehabilitation works, as well as agriculture and food processing activities and will be temporary by nature, site specific, moderate in scale and can be easily mitigated by applying best construction practices and relevant mitigation measures. At the same time, due to the high uncertainty over sectoral policy priorities and directions, and diverse areas of potential investments, as well as weak knowledge of implementing entity of the ESF requirements, the project environmental risks at Appraisal stage are assessed as Substantial.

Potential social impacts and resettlement issues. The sub-projects and grants to be implemented under the project will generate a great number of both direct and indirect positive impacts. Direct positive impacts

1 In Osh region, the identified regional cities/growth poles according to the Government’s Regional Development Strategy (2018-2022) include Osh City, Uzgen, Kara-Suu and Sary-Tash. 7

will be generated by increased production, products and goods which would result in creation of new jobs and respectively, more employment and increased income. Indirect positive impacts will relate to overall improving of business environment, introduction of advanced agricultural technologies and techniques, contribution to poverty reduction and food safety. Potential indirect adverse social impacts can be related to increase water pollution and health risks due to more usage of chemicals in agriculture. Under Component 2 the project will provide the matching grants window to finance investments related to the adoption of innovative technologies, supporting value chains. Under Component 4 the project will support SME development through a training and small grant program targeting tourism and rural SMEs and startups. The strengthening agri-food supply chains and SMEs subcomponent may be used to finance investments in technological plants, equipment, expansion of orchards, and greenhouses. The Environmental and Social Management Plan (ESMP) will be part of operational procedures.

Due to the potential investments under Components 2 and 3 which could necessitate some temporary and/or permanent physical and economic displacement or induce changes in land use or land access in the areas of certain activities. For example, these could include sewerage, water supply, drainage system, roads, and transport linkage improvements and other type of transformative investments in improving livability, tourism, and agro-industry. However, the nature and extent of interventions and the impacts thereof are currently not known and will become clearer when investment activities are chosen. An RPF will be prepared and disclosed prior to appraisal. In case designs of and investments for subprojects are identified, RAP(s) to be also prepared by appraisal.

Project social risks rating. Social risk is considered to be Substantial. The Project area is characterized by: (1) Past inter-ethnic relation conflict – the project area is exposed to conflict and fragility risks which may have a bearing on the project outcomes. (2) Geographical features – territory is covered by mountainous area and valley, making it difficult to improve connectivity to markets and deliver infrastructure and basic public services. The region is highly exposed to natural hazards and disaster risks. Livelihoods of households are heavily dependent on natural resources and agriculture which are inextricably linked to environmental and climate vulnerabilities. (3) Economic situation – high rate of unemployment in particular among youth and significant dependency of household income on remittances which is vulnerable to external economic conditions and fluctuations. (4) Weak institutions – local governments and communities are still limited in their capacity to undertake participatory approaches to governance and development. This weak state-society relationship has been a trigger for conflicts, due to poor management and inequitable distribution of public services, resources, and employment opportunities. Project social risks mostly concern (i) exclusion risk of vulnerable or disadvantaged groups and (ii) potential risk of physical and economic displacement. On the exclusion risk, it is concerned about ensuring vulnerable and disadvantaged groups such as low-income and geographically isolated smallholder farmers, rural producers, women, and youth, female-headed households, disabled and elderly people to benefit from the project, specifically from components 2 and 3. Government capacity in providing an enabling environment for an inclusive private sector reaching out to smallholder farmers, rural producers, and agro- processors is weak. Under the proposed Component 2 and 3 the project will finance civil works that could necessitate some temporary and/or permanent physical and economic displacement or induce changes in land use or land access in the areas of certain activities. Potential project interventions would extend to rejuvenation of Osh city downtown core through improvements to urban roads, non-motorized network for pedestrian and cyclists, upgrading of city parks and public spaces, waterfronts, community and social facilities, exploration of smart-city ideas (such as provision of wifi and hotspots around the city or key tourist sights, or applications to enhance information access etc.). And in Uzgen city this will include improvements to urban roads, pedestrian bridges, upgrading of city parks and public spaces, community, and social facilities, etc. However, the nature and extent of interventions and the impacts thereof are currently not known and will become clearer when investment activities are chosen and designed.

Overall project environmental and social risks. Considering the potential environmental and social risks, described above, as well as the high uncertainty over sectoral policy priorities and directions, and diverse areas of potential investments the overall project environmental and social risks are assessed as Substantial.

Relevance of Environmental and Social Standards (ESS) and triggered WB Operational Policies (OPs). All ESSs but ESS 7 (Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities) and ESS 9 (Financial Intermediaries) are relevant to the project. In terms of triggering 8

WB Operational Policies, while the OP 7.60: Projects in Disputed Areas does not apply and is not triggered by the project, the OP 7.50 on International Waters is triggered. The proposed activities will be in the Osh Region of the Kyrgyz Republic, which is located on the Ak-Bura river, a tributary of the Syr-Darya River that is shared by the Kyrgyz Republic, Kazakhstan, Tajikistan, and Uzbekistan and thus an international waterway according to OP 7.50. The proposed investments will include rehabilitation of field-level irrigation systems, and rehabilitation and improvement of existing water supply and sanitation infrastructure in Osh and Uzgen city. These investments are proposed to be relatively small-scale of rehabilitation nature and are not expected to lead to increased water abstraction or increased volume of discharged waste waters and will not extend any existing schemes. The Project will not adversely impact the quality or quantity of water flows to the other riparians and will also not be adversely affected by the other riparians' possible water use. An exception to the notification requirements according to paragraph 7 (a) of OP 7.50 was approved by the Regional Vice President on November 22, 2019. Environmental and Social Management Framework (ESMF). Scope of project Environmental and Social Management Framework. As before project appraisal it is not possible to identify all activities and the subprojects that will be financed, in accordance with the ESS1, the borrower prepared the Environmental and Social Management Framework (ESMF), which specifies rules and procedures for the activities and subprojects’ Environmental and Social Impact Assessment (ESIA) and for preparing Environmental and Social Management Plans (ESMPs). The ESMF will guide the ESIA process and covers the following: (i) rules and procedures for environmental and social screening of project activities and subprojects to be supported under the project; (ii) guidance for conducting subprojects ESIA and/or preparing simple ESMP or ESMP Checklist which would include the monitoring plans; (iii) mitigation measures for possible impacts of different proposed activities and subprojects to be supported by the project; (iv) safety measures while applying pesticides and a template for the Pest Management Plan (PMP); (v) requirements for monitoring and supervision of implementing of ESIA/ESMPs, implementation arrangements; (vii) overview of the capacity of ARIS (the project implementing entity) for E&S risk management and capacity building activities that would include other parties (the Productive Partnerships Selection Committee and Small Grants Program Committee) on mitigating potential environmental and social risks and conducting subproject-level ESIA. Furthermore, the ESMF specifies ARIS will need to prepare a SA as part of SIA process that includes: (i) stakeholder identification/mapping; (ii) stakeholder analysis of expectations, concerns, and issues; (iii) assessments of positive and negative impacts; and (iv) a social management plan to mitigate the negative impacts and enhance positive benefits.

Resettlement Policy Framework (RPF). The ESS5 is considered relevant due to the potential investments under Components 2 and 3 which could necessitate some temporary and/or permanent physical and economic displacement or induce changes in land use or land access in the areas of certain activities. For example, these could include sewerage, water supply, drainage system, roads, and transport linkage improvements and other type of transformative investments in improving livability, tourism, and agro- industry. However, the nature and extent of interventions and the impacts thereof are currently not known and will become clearer when investment activities are chosen. An RPF will be prepared and disclosed prior to appraisal. In case designs of and investments for subprojects are identified, RAP(s) to be also prepared by appraisal.

Borrower’s Environmental and Social Commitment Plan. The ESCP specifies the main responsibilities and actions to be undertaken by the MoE and the implementing agency (ARIS) to ensure project compliance with the WB ESSs and in particular: (a) conducting environmental and social screening for all project activities via ESMP/ESMP Checklist covering the above aspects; (b) application of the ESMF and RPF to all project activities, including the need to prepare site specific ESMPs and Resettlement Action Plans; (c) reporting on environmental and social performance of all activities on a biannual reports; (d) ensuring transparency in providing project environmental safeguards and ensuring all ESIA and/or ESMPs are disclosed and publicly consulted with all interested parties; (e) maintaining through the whole period of project implementation human capacity to ensure project activities ESIA and ESMP supervision and monitoring and providing adequate reporting to the implementing agency and to the WB; (f) preparation and adherence to the Environment, Social, Health and Safety Code of Conduct by works contractors; and (g) implementing and reporting on (i) Stakeholders Engagment Plan; (ii) Labor Management Plans (LMP); and Grievance Redress Mechanism.

ESA supervision and reporting. The status of the compliance with the ESMPs’ requirements shall be provided by the contractors to the ARIS, and then to the Bank by the ARIS in form of their semi-annual report. Environmental and social monitoring during sub-projects implementation should provide information about key environmental and social aspects of the sub-projects, particularly its environmental impacts, social consequences of impacts and the effectiveness of taken mitigation measures. Such information enables the ARIS to evaluate the success of mitigation measures as part of project supervision and allows corrective action(s) to be implemented in a timely manner, when needed.

The Resettlement Action Plan implementation monitoring will involve (i) administrative monitoring to ensure that implementation is on schedule and problems are dealt with on a timely basis and (ii) overall monitoring to assess status of project affected persons in terms of compensation and assistance and alternate land allocation with land development etc. Monitoring will include daily planning, implementation, feedback and troubleshooting, individual affected person file maintenance, community relationships, dates for consultations, number of appeals placed and progress reports

Integration of the ESMPs into project documents. The ESMP provisions will form part of the design documents for the project and will be included in construction contracts for selected subprojects, both into specifications and bills of quantities. Respectively the Contractors will be required to include the cost of ESMP requirements in their financial bids and required to comply with them while implementing the project activities. The bidding documents for selecting the contractors will include specifications that would ensure effective implementation of environmental, health and safety performance criteria by the winning bidder.

ESMF implementing arrangements. To ensure coordination and flow of information and timely decision making on strategic and programmatic aspects at the highest level, the project will be overseen by an Inter- Ministerial Working Committee (IMWC), formed with participation of the Deputy Minister or director level representatives from various relevant line ministries and government agencies. The Community Development and Investment Agency (ARIS) is the project implementing agency, while the Ministry of Economy will provide overall coordination of the project. ARIS has had extensive experience working with the World Bank (WB) as well as multiple development partners to prepare and implement projects. The Agency has in its staff highly experienced environmental and social safeguards specialists, which have participated in the past organized WB safeguards training, including training on the new WB ESF. Based on the results of the WB supervision missions on last projects under ARIS implementation (Third Rural Water Supply and Sanitation Project, and the Urban Development Project) specified projects, the IRIS ARIS environmental management performance was always qualified as satisfactory. Its team currently is managing the Urban Development Project (UDP) and will be supplemented with additional capacity to take on the preparation of the RED. The ARIS is well experienced with implementing all donor-financed projects on agriculture and water resource management and they have a good record of working hand-in- hand with the line ministries to deliver specific programs. At same time, the ARIS has limited expeince and knowledge on addressing the requirements which are related to new World Bank Environmental and Social Standrads and in particular those related to labor and working conditions and labor safety issues; community health and safety; incidence reporting protocols; etc. The project will support necessary capacity building activities in specified areas.

World Bank Assistance in complying with the ESSs. The Bank’s environmental and social specialists will provide support to ARIS to ensure smooth implementation of the Project activities in consistency with the applicable Environmental and Social Standards of the Bank. Regular site visits will be carried out to monitor the compliance of the contractors with good construction practices and other requirements to be specified in site-specific ESMPs. Additionally, the social specialists will be reviewing the consistency of land acquisition with the requirements of the RPF and RAPs to be prepared for project activities. The Bank task team will provide guidance in, and review, key environmental and social monitoring documents, such as ESMPs, RAPs, RAP Completion Reports, and quarterly progress reports and support PEC and BT in meeting its commitments set out in ESCP.

Citizen engagement. During preparation, the project activities have been identified through a participatory process engaging national, regional and local stakeholders. In addition, the studies for urban regeneration of Osh and Uzgen city cores were conducted in a participatory manner. All relevant stakeholders (including 10

women and youth) have been engaged (including the public and private sector and representatives from local communities), study results have been presented, and citizen inputs have been considered for the project design. Also, the indicative long list of investments has been informed by citizens’ views and a tourism rapid assessment. During implementation, the project will continue to pro-actively involve citizens and beneficiaries (including women and youth groups) across project activities and ensure their genuine engagement in the finalization of detailed designs. Under the project’s first component, the development of regional strategies and action plans will remain participatory and would be finalized only based on in-depth stakeholder engagement. The project’s second component investments in sub-projects would be demand driven and involve extensive awareness raising and open call for interested participants. For Citizen Engagement purposes, the project will utilize the following mechanisms: (i) participatory urban design through place-making, which is a collaborative, community-driven approach including citizens and the local community into urban design activities, (ii) participatory monitoring of ongoing construction works, which will include community representatives to evaluate the implementation of the investments, (iii) periodic “Open Door Days”, organized like consultative workshops inviting local citizens and SMEs interested in implementing grant activities and providing guidance and information on the grant program (tailored to applicant needs). These events will aim to also involve vulnerable local citizens and ensure that dialogues are established to assess needs and gaps and further improve grant programs, and (iii) a dedicated and already institutionalized Grievance Redress and Beneficiary Feedback Mechanism for the matching/small grant program, which will be actively promoted in the project. This mechanism will ensure that various avenues of contact and information are utilized (including telephone and widely used web apps such as Facebook, WhatsApp, and Viber). Information with contact phone numbers, the ARIS web site, and a QR code will be displayed at the respective city halls and at all construction sites. For the small grants program, information for interested applicants will be offered through the announcements (posters) in public places and at easy to access information boards. Finally, all citizen engagement activities will include meaningful discussions of climate change and sustainability issues relevant to the respective communities and explanations on how the proposed activities and investments will address the issues of climate change adaptation (and mitigation, where possible).

Grievance Redress Mechanism (GRM). Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project- level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org

The proposed Grievance redress mechanism within the ESMF helps complaint handling system to be functional, transparent and responsive, and where appropriate, strengthen government systems. ARIS uses the Beneficiary Feedback Mechanism (BFM) which is an information system for management of grievances put forward by the Program affected persons or any other person from the Program communities. The main objective of the beneficiary feedback mechanism is obtaining prompt, objective information, evaluating and reviewing grievances (applications, proposals, complaints, requests, positive feedbacks), at all stages of program implementation. In addition, the BFM strengthens communication with program beneficiaries, provides channels for feedback, identifies and address issues and increases transparency and accountability. All grievances and appeals received from citizens are delivered to the corporate system for further processing and follow-up.

ESMF public consultations and information disclosure. For ESMF development, project sites were visited and number of meetings conducted with the main stakeholders. Draft version of ESMF with main RPF and GRM related provisions were presented during public consultations. Draft version of ESMF in local language was published on Agency’s website (http://www.aris.kg/files/media/4/4722.pdf) on October 23, 2019 and with advertisement about planning public consultations. Moreover, information about the 11

planning consultation was distributed through Osh oblast administration as well – municipalities. The ESMF public consultations were held on November 6 in Osh city. Representatives from all districts of Osh oblast, participating towns, business unions, Osh and Uzgen cities departments on culture and architecture, state inspectorate on environmental and nature protection, and others are attended meetings. In total, nearly 90 participants attended the meeting. Brief information about the project, components, implementation agencies, ESMF was also presented in the meeting. During the public consultations, information about the project, anticipated environmental and social impacts, proposing mitigation measures, environmental and social assessment procedure were presented to the meetings’ participants. Proposed GRM was discussed as well. ESMF and RPF documents were published on Implementing Agency’s website and further, before project Appraisal, will be published on WB external website.

1. PROJECT BACKGROUND AND SCOPE OF THE ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK

The Project Development Objective is to support the Government of Kyrgyz Republic to enhance regional economic development through targeted interventions in the selected sectors in the Osh region. Through these, the project will support economic and regional development in an integrated manner and in a spatially identified area, furthering creation of job opportunities for growth and poverty reduction.

The Regional Economic Development Project responds to the request by the Government of Kyrgyz Republic to support their regional development efforts as outlined in the Regional Development Strategy (2019-2022) around four priorities and three cross-cutting themes. The Strategy seeks to significantly boost economic development through simultaneous efforts in four priority areas, namely: (i) closing infrastructure gaps; (ii) creating a more attractive investment environment (including through sound macroeconomic policies, investment promotion initiatives and tax reform); (iii) implementing PPP solutions and improving public assets management; and (iv) strengthening and deepening the financial sector.

1.1. Project approach and potential beneficiaries

Consistent with the Government’s priorities, the proposed project is envisioned as a multi-sectorial project and will include core investments in local and territorial development as well as support to agriculture, transport, private sector development etc. as relevant. Project interventions will identify a tailored package of investments/activities aimed at: (i) boosting each regions’ unique economic potential and eliminating binding constraints, while supporting the (ii) convergence of living standards; and (iii) strengthening the local capacity to provide municipal infrastructure and services.

The project will focus support on one pilot region, Osh Oblast, and include Osh city as well as potentially other identified growth poles2 within the Osh region. Based on the regional and spatial analysis, the selected pilot region– Osh, , are the key lagging ones and share common challenges in terms of low GDP per capita, low skilled labor, low market accessibility and low level of infrastructure and services. Special attention will be paid to: (i) address critical gaps in public infrastructure and services for urban areas and connectivity to rural production areas to enhance integration with regional and global markets; (ii) create enabling environment for economic sectors and private business through targeted and strategic investments; and (iii) identify and enhance opportunities for local economic and livelihood development. Support to the other regions of the Kyrgyz Republic could be realized through future follow- on phases to this project once the piloted approach in Osh will be successful.

The priority investments in selected pilot region and cities are being identified through a participatory process engaging national, regional and local level stakeholders. Key considerations include the needs and gaps of the participating regions and localities, as well as the ability of the investments to maximize development impact and exploit synergies with existing and planned World Bank operations and as well as those supported by the Government, other development partners and the private sector.

The project activities will be implemented in Osh and Uzgen cities, other districts of Osh oblast. The primary beneficiaries for this project are the inhabitants of participating regions and municipalities (both urban and rural), SMEs from the agricultural and tourism sectors, agricultural producers and visitors who will benefit directly from improved accessibility, connectivity and infrastructure and services. Both male and female inhabitants of participating localities are also expected to indirectly benefit from increased job opportunities. Indirect beneficiaries will be the aggregate number of visitors to the cities (for work, visit to markets, administrative, tourism and other purposes). Government counterparts and associated entities will benefit from the project mainly through Component 1 initiatives on institutional and capacity strengthening. These include: (i) at the central level - Ministry of Economy; Department of Tourism under the Ministry of Culture, Information and Tourism; Ministry of Agriculture, Food Industry and Melioration,

2 The list of identified growth cities according to the Government’s Regional Development Concept (2018-2022) includes, among others, Osh and Uzgen cities in Osh region. 13

Agribusiness Competitiveness Center (ABCC); and (ii) at the regional and local level - the regional Government in Osh Oblast, local administrations of Osh city, Uzgen City, and various districts within the Osh Oblast. The Project area is presented in the map below.

Figure 1: Project area

1.2. Project components and proposed investments

The RED project will focus on enabling regional economic development with a focus on catalyzing private sector development, and on building the capacity of urban centers to serve as the hubs for regional development. Project interventions will include a tailored package of investments and activities aimed at: (i) boosting the region’s economic potential (ii) elevating living standards; and (iii) strengthening the institutional and private sector capacity in the target areas. Component 1: Strengthening Regional Economic Planning and Regulatory Functions (US$ 5.5 million). Interventions proposed under this component are aimed at building capacity for regional economic development planning at the central and regional levels and enabling relevant departments of the Ministry of Agriculture, Food Industry and Melioration (MAFIM) in the Osh region to fulfill their mandate of provision of key public services, including effective regulation. This component will comprise two sub- components: Sub-component 1.1: Enhancing Regional Economic Planning (US$ 1.5 million). This sub-component will support the development and implementation of a Regional Economic Development Plan. The Plan will seek to identify, inter alia, policies, priority actions and institutional requirements for effective integrated regional economic planning and development of the region and its main economic corridors. The plan will be developed by the subnational government and will focus on identifying opportunities to boost regional economic potential through inclusive, integrated and climate smart initiatives. Financing will also be allocated for specific capacity building opportunities for the staff of public institutions to enable them to better manage and promote the assets generated under the project and enable the private sector to offer improved services. While the focus largely will be on Osh city and region, the key staff of the relevant ministries (for example, the Ministry of Economy (MOE), the Ministry of Culture, Information and Tourism, the MAFIM) will also benefit from capacity building activities to enhance their knowledge for better regional development planning, coordination, and policy making. Support will be provided for the sustainable and long-term use of the selected assets developed and regenerated under the project by developing plans and required instruments. The sub-component will also promote sustained coordination between the center and the region through the use of appropriate technologies and practices (for example, digital platform for regional development investments prioritization and selection). Sub-Component 1.2: Improving basic agricultural services and regulatory functions (US$ 4.0 million). This sub-component will improve the infrastructure and services that underpin agri-food marketing and trade in Osh with a focus on strengthening capacity for sanitary and phytosanitary (SPS) 14

control, food quality, and basic services. Financing will be provided to upgrade facilities located in Osh city and the region relating to food safety functions within the mandate of the MAFIM and other line ministries. The project will complement ongoing investments that have been initiated to upgrade SPS capacity in line with the standards for the EEU and the WTO by financing remaining gaps. This will include financing for laboratory equipment and upgrading of facilities at border control points and expanding sampling capacity at the district/rayon level. Investments will also finance upgrading food safety quality infrastructure in Osh city/region within GosStandard, Food Laboratory (Sanepidnadzor), Veterinary Service and small food safety laboratories in local markets. Financing under the project will also be channeled to upgrade seed certification and soil analysis functions in Osh in order to support investments in upgrading production and productivity in the second component. For the seed laboratory this will include upgrading the existing lab in Osh to achieve International Seed Testing Association (ISTA) certification. Similarly, targeted investment will be provided for Osh Technological University and Osh Agricultural College to upgrade their equipment base and to incorporate agricultural export markets requirements, food safety regulations, HAACP, and modern food processing technologies for short term and long-term training. Infrastructure investments will upgrade existing facilities and will be guided by a detailed feasibility assessment in the first year to refine technical specifications and design. Component 2: Strengthening Agri-Food Supply Chains and SMEs (US$ 25.5 million). This component will facilitate the development of partnerships between agri-businesses and small agricultural producers to finance targeted investments that improve quality and expand production/processing volumes. The component will utilize a value chain development or productive partnership approach that is based on facilitating and organizing producer groups to meet specific market requirements and link with buyers/aggregators or processing enterprises. The aim of investments will be to: (a) improve access to market as well as quality and consistency in the supply of relevant outputs; (b) stimulate alliances within the supply chain; and (c) reduce risk or transaction costs for value chain participants, including risks related to climate change. The project will facilitate the development of individual productive partnerships that will be selected on a demand-driven basis during implementation. A productive partnership is expected to cover multiple producer groups in one value chain and include potential beneficiaries across the value-chain - farmers, collectors, processors, traders, and exporters. Each productive partnership will be expected to target a specific market opportunity; be owned by a lead farmer group, producer organization or cooperative; identify an investment program targeting critical constraints; and include bona fide market opportunities with identified buyers/partners. Each partnership will be governed by a framework agreement between ARIS, the lead producer group and the buyer/aggregator or processing enterprise. Financing for activities within a partnership will take place through two windows. The first window is a public investments window that will finance public services and infrastructure critical to improving the functioning of the value chain targeted in the partnership. In particular, Window 1 will finance: (i) technical assistance and training for producers and other services around quality assurance, pest and disease control and food safety improvements; and (ii) public infrastructure rehabilitation (i.e. access road repairs, electricity infrastructure, and other agriculture related infrastructure) critical to functioning of the value chain. A second matching grants window will finance productive investments that introduce new technologies or support post-harvest processing capacity among individual producers or producer groups within the partnership. In particular, the matching grants window will finance investments related to the adoption of innovative technologies (particularly climate resilient or resource efficient technologies) including appropriate equipment, new crop or livestock varieties and farm inputs; and post-harvest facilities (such as facilities for storage, washing, grading, packing, pre-cooling, cold storage) for specific producer groups. A partnership may define an investment program including both windows or one window alone. The sequence of implementation of activities within the partnership and the two financing windows will be determined by the specific partnership proposal. Investments under the public investment window (window 1) will be 100 percent financed by the project. Matching grants (window 2) will be governed by additional grant agreements signed with direct recipients and will be co-financed by farmers/producer groups at the level of 25 percent in cash or in kind. In the case of larger agri-business participants in the partnership (for example, processors or trade and logistic centers), cooperation will be in line with best practice principles

for public-private cooperation and participants will be required to develop formal supply chain linkages to producers within the partnership. The overall budget limit for each public partnership supported under the project (the combined total of Window 1 and/or Window 2) would be $1 million. The ceilings for the matching grants window for individual producers may not exceed $10,000 per producer or, if awarded to the group and financing a group owned asset, may not exceed $200,000 per producer group. The detailed criteria for selection of the value chain and the productive partnership will be defined in the Productive Partnerships Manual. Key criteria for selection include existence of a market or buyer, potential for job creation or engagement of many small-scale farmers, sustainable comparative advantage or competitiveness, inclusion of women and youth. The selection and award process will also include a feasibility study that will inform the development of business plans and detailed proposals. Given that many farmers are women, productive partnerships are expected to generate positive impacts for women and the criteria for selection will prioritize those demonstrating inclusion of youth, women and vulnerable groups. Component 3: Catalyzing investments for tourism and urban development (US$ 22.0 million). This component will leverage the unique natural and cultural assets of the Osh region and its cities and finance foundational and enabling investments supporting: (i) integrated packages of improvements of priority touristic sites and clusters; (ii) regional infrastructure, services and amenities to address key bottlenecks for improved tourism quality and conditions; (iii) urban amenities that will enhance the livability of urban centers to attract tourists and retain residents, and (iii) pilot public-private cooperation to attract private investments in the tourism sector. The sub-components are: Sub-component 3.1: Upgrading Osh and Uzgen Urban Cores and Tourism Circuits (US$ 19.0 million). The Osh region has untapped potential to attract domestic and international tourists to visit the many natural and cultural attractions it has to offer. Osh is the second largest city in the country and the gateway to the south and the Fergana Valley, while Uzgen has been identified as one of the growth poles in the region with recognized potential to grow its incipient tourism sector. For tourism development and urban regeneration, the project will finance infrastructure investments in the participating cities (e.g. Osh and Uzgen) and tourism circuits (e,g. Kara-Shoroo, Kyrgyz-Ata, Abshyr-Ata) to improve the tourism image of these areas and address the need for targeted, area-based urban upgrading and complementary infrastructure, services and connectivity, to improve livability. This will include investments in, inter alia, (1) enhancement of public spaces and upgrading of street networks and associated infrastructure; (2) adaptation and rehabilitation of selected cultural heritage and public buildings; (3) improvements in urban mobility and other urban infrastructure upgrading; (4) improvements in selected basic infrastructure and services that are part of larger networks when deemed necessary to address bottlenecks hindering urban functionality and/or complement the long-term functionality and increased effectiveness of area-specific urban upgrading efforts; (5) upgrading of vehicular, pedestrian and multi-modal accesses, including upgrading of bridges to reduce congestion points; (6) rehabilitation and improvements/modernization of trunk infrastructure, including water supply and sewage networks, where required; (7) support to solid waste management systems; (8) upgrading of storm water drainage systems, if necessary; and (8) preparation of necessary feasibility studies, detailed designs (including urban design studies), and construction supervision for the above listed activities. The component will also initiate and support a Public-Private Cooperation (PPC) mechanism, which will finance public infrastructure to attract private investment in tourism in towns and villages across the region, where private sector entities are willing to invest but require complementary public infrastructure to make their investment viable (e.g., public infrastructure within vicinity of the investments, road/sidewalk, water/sanitation, etc.). Investments under this initiative will be limited to the determined ratio (e.g. 1 to 4) of the investments provided by the private sector. The PPC initiative will follow a specified screening and selection process, which will be set out in the Project Operations Manual, developed by the PIE and acceptable to the Bank.

Sub-Component 3.2: Tourism Product Development, Marketing and Promotion (US$ 3.0 million). This sub-component will provide support to public entities at both the national and subnational levels, especially to: (1) the Department of Tourism (under the Ministry of Culture, Information and Tourism) for improved monitoring and evaluation, marketing and promotion of the Kyrgyz Republic as an emerging destination at the targeted international markets, (2) the Department of Tourism and the relevant regional

government entities to develop a comprehensive tourism strategy for the Osh Region, which shall identify opportunities for sector development and offer solutions and a roadmap to address shortcomings; (3) the Kyrgyz Tourism State Enterprise for investment attraction, training and marketing; (4) public and private sector in Osh to improve destination management in Osh Region covering tourism marketing, promotion, local outreach campaign and media coverage, as well as tour packaging with bordering countries and tourism industries; (5) regional and local administrations to plan and implement cultural events for tourism development, (6) central, regional and local agencies to provide support with performance monitoring & evaluation activities (e.g. measuring tourist arrivals/number of visitors, spending, opinions, occupancy rates, increases in tourism-related investments, and gender aspects) and e-governance initiatives (e.g. an online platform/one-stop service center for tourists, or support to host application on the cloud services); (v) museum and national park administration to have set plans for sustainable site management of cultural and natural heritage; and (vi) other key tourism-related organizations/associations and the private sector representatives for skilled workforce development and capacity building. Component 4: Supporting Tourism and Rural SME Development through Small Grants (US$ 3.0 million). The project will support SME development through a training and small grant program targeting tourism and rural SMEs and startups. The small grants program will aim to support the launching of new enterprise activities in rural areas and diversification and expansion of tourism services. In tourism, small grants will be expected to improve the capacity, and the quality and range of services offered, which could result in inter-linked activities, inter alia, in the areas of gastronomy tourism and eco-tourism. The program will follow a phased approach, where the accommodation managers/staff, tour operators and tour guides will undergo a robust training program and those who will complete it successfully will be eligible to apply for financing. Other services providers and SMEs will be required to submit a sound business plan for their proposed activities. Technical support in business plan development will be provided by the project. Start- ups financed under the program will be eligible for financing to scale-up their activities after the proven record of successful utilization of funds (presenting books, payment of taxes, generating employment, etc.). To address the issues of low rates of women participation in the labor and in access to finance, described in paragraph 6, the Small Grants Program will give preferences to women. Female applicants for the training program will be given a priority at the selection stage as well. This will give women an opportunity to gain practical knowledge and skills in doing business in the hospitality sector or rural entrepreneurship. When scoring business-plans for financing, women applicants will be given additional points. The same approach will be used for youth to promote young entrepreneurs at the local level. The Small Grants Program will be guided by a Small Grants Handbook, which will be developed by the PIE. Disbursement under this component will be subjected to the approval of the Handbook by the Bank. Component 5: Implementation Support, Monitoring and Evaluation (US$ 4.0 million) This component will support project implementation, including the project’s monitoring and evaluation system, communication strategy, application of safeguard instruments, training and financing of incremental operating costs of the PIE.

1.3. Scope and objectives of Environmental and Social Management Framework

Scope of project Environmental and Social Management Framework. As before project appraisal it is not possible to identify all activities and the subprojects that will be financed, in accordance with the ESS1, the borrower prepared the Environmental and Social Management Framework (ESMF), which specifies rules and procedures for the activities and subprojects’ Environmental and Social Impact Assessment (ESIA) and for preparing Environmental and Social Management Plans (ESMPs). The ESMF will guide the ESIA process and covers the following: (i) rules and procedures for environmental and social screening of project activities and subprojects to be supported under the project; (ii) guidance for conducting subprojects ESIA and/or preparing simple ESMP or ESMP Checklist which would include the monitoring plans; (iii) mitigation measures for possible impacts of different proposed activities and subprojects to be supported by the project; (iv) safety measures while applying pesticides and a template for the Pest Management Plan (PMP); (v) requirements for monitoring and supervision of implementing of ESIA/ESMPs, implementation arrangements; (vii) overview of the capacity of ARIS (the project implementing entity) for E&S risk management and capacity building activities that would include other parties (Productive Partnerships Selection Committee and Small Grants Program Committee) on mitigating potential environmental and 17

social risks and conducting subproject-level ESIA. Furthermore, the client will need to prepare a SA as part of SIA process that includes: (i) stakeholder identification/mapping; (ii) stakeholder analysis of expectations, concerns, and issues; (iii) assessments of positive and negative impacts; and (iv) a social management plan to mitigate the negative impacts and enhance positive benefits.

In addition, the ESMF covers general mitigation measures for possible impacts of different proposed activities to be supported by the project; implementation arrangements for project environmental and social aspects, relevant capacity building activities, consultation process etc. This ESMF is the document focused on the overall project implementation. During the implementation of the further project activities, potential safeguard issues will be screened to determine the scope and types of safeguards instruments that would be required. Specific ESMPs for investments identified during project implementation will be prepared in due time before works may commence. The RPF information, part of this ESMF, serves to assess and mitigate potential social impacts associated with land acquisition and economic or physical displacement of population required for the project.

This ESMF identifies the responsibilities of project stakeholders, procedures for environmental and social safeguards screening, review and approval, monitoring and reporting requirements, as well as plans to enhance institutional capacity through capacity building activities. It also offers sample terms of reference for carrying out environmental impact assessments (EIAs) and Guidelines for carrying out resettlement action plans (RAP/ARAPs). The ESMF serves as an environmental and social safeguards instrument to provide the framework to both the relevant government agencies and private investors for preparing and implementing further infrastructure subprojects. Finally, this ESMF will be an integrated part of the Project Operation Manual (PoM) along with the Operational Manuals for matching grant scheme under the component 2 Strengthening Agri-Food Supply Chains and SMEs and component 4 Supporting Tourism and Rural SME Development through Small Grants and is applicable to all linked investments financed in the project areas regardless of their funding source or implementing agency.

2. ENVIRONMENTAL AND SOCIAL ASSESSMENT POLICY AND REGULATORY FRAMEWORK

2.1. Kyrgyz Republic National Environmental Legislation and ESA Procedures

2.1.1. Constitution

The supreme legislative instrument in the Kyrgyz Republic is the Constitution of the Kyrgyz Republic, 2010 (latest revision 2016), hereafter referred to as ‘the Constitution’. All laws must comply with the Constitution, and only the parliament may amend it, change or pass laws or ratify international agreements. Under the Constitution, the Kyrgyz Republic is a parliamentary democratic republic, with a popularly elected president, a nominated prime minister, and a 120-seat unicameral legislative assembly.

2.1.2. Natural Resources and Environment Legislation

The Constitution establishes the basic principles of natural resource and environmental management, including the right of KR citizens to access the primary sources of life while the main resources (land, water and subsoil) are the common property of the people and belong to the state. Based on these principles, a legal framework has been developed to regulate relations between natural resource users and the state (UNDP 2007a). The most significant relevant legislation includes:

(a) Law on Environmental Protection, 1999, which provides state policy and the general legal framework for natural resource utilization and environmental protection; (b) Law on Ecological Expertise, 1999, which empowers the SAEPF to undertake State Environmental Reviews (SERs) of proposed projects; (c) Law on Surface Water Protection, 2009, which provides a framework for protection of water bodies, including development and approval of water protection activities and defining rules and enforcing sanctions for violations.

In addition to legislation that pertains directly to environment and natural resources, the Kyrgyz national legal framework includes laws in other substantive areas with relevance to the Project. Chief among these are laws concerning labor and occupational health and safety, and cultural heritage protection. These are addressed as follows.

The Constitution offers protections for workers, stipulating that they are entitled to labor conditions in which basic requirements for safety and hygiene in the workplace are met. The Ministry of Labor and Social Development has primary responsibility for overseeing occupational health and safety. Key relevant legislation includes the Law of the Kyrgyz Republic on Occupational Safety, 2003, the Labor Code of the Kyrgyz Republic, 2004, and individual regulatory norms. The KR joined the International Labor Organization on March 31, 1992. A review by that organization in 2008 concluded that the Law of the Kyrgyz Republic on Occupational Safety met international norms and standards, though it also identified a lack of trained state inspectors to ensure enforcement (ILO 2008).

The Constitution also guarantees state protection to historical monuments. The Law on Protection and Use of Historic-Cultural Heritage, 1999 (last revised 2014) establishes a system for the protection of objects of local, state and international historical or cultural importance, with the Ministry of Education and Science having custodial authority. The Ministry maintains the official state cultural heritage register, which lists over 5,000 items of local, state and international importance. Legislation most relevant to the Project is summarized in

Table 1.

Table 1 – Relevant Kyrgyz Republic Environmental Legislation

Purpose / Content Legislation Year Passed (Amended)

Provides state policy and the general legal framework for 1999 natural resource utilization and environmental protection, Law on Environmental (2002, 2003, 2004, 2005, including environmental impact assessment, setting Protection 2009, 2013, 2014, 2015, environmental standards, and the legal regime for protected 2016) areas. It establishes the basic principles of environmental policy and determines global, national and local environmental The Environmental 2009 (2012) issues; priorities in the field of environmental protection at Safety Concept of KR the national level as well as tools to ensure environmental safety. Provides the legislative framework for the SAEPF to Law on Ecological 1999 undertake SER and approval of EIAs. Defines (in general) Expertise (2003, 2007, 2015) projects requiring environmental assessment and SER. Regulates the use and protection of water resources, including prevention of negative impacts, and seeks to improve cooperation and enforcement. Law on Water 1994 Regulates the quantity and quality of water released into the Resources (1995, 2012, 2013, 2016) environment, and prohibits the discharge of industrial, household and other wastes into water bodies. Provides water protection zones, where activities that can negatively impact water quality are prohibited. 1999 Law on Drinking (2000, 2003, 2009, 2011, Regulates drinking water availability and its quality. Water 2012, 2014) Regulates the organization, protection and use of biosphere Law on Special 1994 reserves; national parks; other protected areas with unique Protected Natural (2011) natural areas, flora or fauna or cultural heritage values; and Territories protected areas for recreational use. Sets out legal standards for biosphere reserves, with the goal of preservation, restoration and use of areas rich in natural Law on Biosphere and cultural heritage, and supporting long-term sustainable 1999 Reserves No. 48 economic and social development, including recreation, restoration of natural resources, long-term ecological control, monitoring and education. Regulates the use, protection, and reproduction of flora. Key tenets include preservation of biodiversity and growth 2001 Law on Protection and of wild plants and ecosystems; restoration and preservation (2003, 2007, 2009, 2010, Use of Flora of rare, endangered, and endemic species; and use and 2016) restoration of natural vegetation resources based on scientific principles. Regulates commercial fisheries with a view to conservation 1997 Law on Fisheries and development of fish stocks, increasing aquaculture, and (1998, 2008, 2013) meeting the fish product needs of the population. Establishes that fauna is the property of the national state. Regulates protection of fauna during infrastructure design 1999 and construction, including faunal species’ habitat, Law on Wildlife (2003, 2014, 2015) migration routes and areas for nesting and breeding. Provides definitions of wildlife, rare and endangered species, wildlife protection, and use of wildlife. Establishes a unified legal base regulating the use, 2005 Water Code protection and development of water resources to ensure (2012, 2013, 2016) sufficient and safe supply and environmental preservation. Provides the legislative framework for defining, specifying Rules on Protection of standards for the quality of water bodies used for fisheries Surface Waters of the 2016 and irrigation and enforcing regulations regarding Kyrgyz Republic discharges to water bodies, among other things. Law on the Protection 1999 Regulates ambient air quality and air quality management. of Ambient Air (2003, 2005) 21

Purpose / Content Legislation Year Passed (Amended)

Law on Protection and Establishes a system for protecting items of local, state and 1999 Use of Historic- international historical or cultural importance. Includes (2014, 2015, 2017) Cultural Heritage definitions of key terms and types of protected objects. Law of the Kyrgyz Provides the basis for regulation of working conditions, Republic on 2003 including workplace safety features, workplace safety Occupational Safety procedures, and workplace hygiene.

2.1.3. ESA Regulations

There are over 20 regulations in place to support the above-mentioned laws with respect to the protection of wildlife. The most relevant of these are the Regulation on Protection and Use of Fish Resources and Aquatic Organisms, 1994 and Regulation on Protection of Fish Resources and their Habitats, 2008, which prescribe measures to ensure the conservation of fish resources and their habitats during economic activities, establishment of sanitary and protective zones along shorelines, and the prohibition of pollution of shoreline areas by municipal and other wastes. Another relevant regulatory instrument is the List of Rare and Threatened Animal and Plant Species included in the Red Data Book of Kyrgyzstan, 2005 (amended 2009), known locally as the ‘Red Book’.3 Species included in the Red Book – and their habitats – are protected by law, and proposed development projects must incorporate measures to avoid negative impacts, as well as mitigation measures designed to prevent habitat destruction and species extirpation or extinction.

A series of instructions and decrees support the cultural heritage law. These include:

(a) Decree of the President on Measures to Promote the Studies of Historic and Cultural Heritage of the Peoples of Kyrgyzstan, dated January 27, 2012 №18; (b) State List of Monuments of History and Culture in Kyrgyz Republic of National Status, approved by the government on August 20, 2002 № 568; (c) Instruction on Registration, Protection, Restoration, and Use of Historic and Cultural Monuments of Kyrgyz Republic, approved by the government on August 20, 2002; (d) Local ‘Lists of Monuments of Regional Importance’ approved by local authorities in compliance with the Law on Protection and Use of Historic-Cultural Heritage (Article 10).

The key legislation governing occupational health and safety, including at construction sites (the Law of the Kyrgyz Republic on Occupational Safety, 2003) is supported by the Labor Code of the Kyrgyz Republic, 2004, as well as other regulatory norms.

2.1.4. ESA Standards

Environmental standards that are relevant to the Project are identified as follows. Key elements of some of these standards, such as tables showing allowable limits of pollutants. The relevant standards include: Technical Regulation for Potable Water Safety (2011), which establishes microbiological, parasitological and chemical maximum allowable concentrations (MACs) for potable water from centralized urban water supply systems and non-centralized sources (e.g., community wells).

Rules for Protection of Surface Waters (2016, No. 128), which establishes ambient standards for surface water used for potable water, recreation, fisheries and irrigation. The rules regulate the discharge into water bodies of all wastewaters, including domestic, industrial, rainfall and snow-melt waters, road washings, runoff from built-up areas, discharge waters of ameliorative systems, drain waters and mine waters. The rules also regulate economic activities, such as water engineering, that may cause adverse impacts on surface waters. The rules apply to all water bodies, including rivers, streams, lakes and reservoirs.

3 The Red List categorization provides taxonomic, conservation status and distribution information on plants and animals which have been globally evaluated using the IUCN Red List Categories and Criteria. This system is designed to determine the relative risk of extinction, and the main purpose of the IUCN Red List is to catalogue and highlight flora and fauna which are facing a high risk of global extinction (i.e. those listed as Critically Endangered or Endangered). The former Soviet Union originally provided a Red List of species known as the Red Data Book for its territories, and this name is still used in the KR. 22

Hygiene Standard 2.1.5.1315-03 (2004), which establishes standards for the quality of water bodies used for domestic and potable water supply and recreational purposes. Adapted from Russian Federation standards, this standard is typically used only when a particular parameter of interest is not covered by the Rules for Protection of Surface Waters (2016).

Hygiene Standard 2.1.6.1338-03 (June 10, 2004 No. 64-04), which sets MACs for pollutants in outdoor air in urban and rural settlement areas. The MACs are designed to prevent human health impacts from air pollutants and are used when establishing allowable emission levels from industries.

SNIP 2.04.03-85-Sewerage (External Networks and Facilities), which establishes criteria for hydraulic capacity calculations for sewerage networks and wastewater system design, and specifies standards for components of wastewater management systems, including sewerage and treatment plants.

SNIP 3.05.04-85 (External networks, water supply and sewerage facilities), which identifies specifications for pipes, water supply and wastewater plants, tanks, pressure mains and gravitational pipelines.

Kyrgyz Republic Noise Standards, which are adapted from Russian Federation noise standards. The standards were promulgated as Collection of the Most Important Records on Sanitary and Anti- epidemiological Issues; Volume 2, Part 1 (Information Publishing Centre of Goskomsanepidnadzor, Russian Federation, 1994).

KR Law on Sanitary, Epidemiological Well Being of the Population No. 60, July 26, 2001, which aims to ensure sanitary-epidemiological wellbeing of the people of the Kyrgyz Republic and is used to enforce guarantees given by the state to the people to exercise their right to their health protection and to the healthy environment.

In respect of monitoring the Soviet standards: GOST 17.2.3.01-86. Rules for Air Quality Control in Settlements (1986) and RD 52.04.186-89 Manual on Atmospheric Pollution Control (1989) adopted by Kyrgyz Republic will apply, as shown in the following table.

The main normative documents governing the environmental protection activities are:

2.1.5. Legal framework for ESA

The legal framework for environmental assessment in the country comprise several laws and regulation.

The Law on Environmental Expertise4 ensures compliance of economic and other activities with environmental requirements. This Law is applied to projects that may have environmental impact, including feasibility studies as well as projects for construction, reconstruction, development, re-equipment, other projects that may have environmental impact, regardless of their estimate cost and title or ownership type.

The law obliges the project initiator to submit necessary documentation related to the project and its environmental impact to the state environmental expertise. The Expert Commission of the State Agency on Environment Protection and Forestry is responsible for review of the submitted documentation. Positive decision of the State Environmental Expertise is required to trigger financing or implementation of the project. Negative opinion will ban implementation of the project. One of the main opportunities for citizen’s participation and their associations in decision making on environmental protection and rational nature management is public environmental expertise. Two types of environmental review are implemented in the Kyrgyz Republic: State Environmental Expertise and Public Environmental Expertise.

The Law of KR on General Technical Regulations on Ensuring Ecological Safety in the Kyrgyz Republic5 sets general requirements on ensuring ecological safety during design and operation of economic and other activities involving production, storage, transportation and utilization of products. Based on the Law the risk categories for each subproject will be determined to fix arrangements for EIA.

4 Dated June 16, 1999 # 54 (with amendments and additions dated June 11, 2003 # 102; February 26, 2007 # 21) 5 Dated May 8, 2009 # 151 (with amendments and additions dated March 6, 2012 # 19) 23

Environmental impact assessment is carried out according to the following regulations: • Regulations on the procedure for environmental impact assessment in the Kyrgyz Republic (13 February 2015, #60); • Regulations on the procedure of the state ecological examination in the Kyrgyz Republic (7 May 2014, #248); • Law "On Ecological Expertise" No.54 dtd. 1999, (with amendments as of 04 May 2015), • Law "On Environmental Protection" No.53 dtd. 1999, and • Law "General technical regulation on environmental safety."No.151 dtd. 2009.

Environmental assessment in the Kyrgyz Republic is founded on two subsystems: (i) OVOS (the Russian acronym for “Assessment of Environmental Impacts”), and (ii) Ecological Expertise (State Environmental Review, SER). Based on a “list”, project screening is done to determine whether a project is the subject to environmental assessment or not. For cases that this is required, an OVOS is conducted by an OVOS consultant hired by a Project Proponent. The environmental assessment proceeds the EIA documents which will be subjected for further reviews.

The resulting EIA/IEE is then presented for public consultations, after which revisions are done according to the public’s feedback. Subsequently, the OVOS report, Statement of Environmental Consequences, and other supporting documentations are submitted for the State Environmental Review (SER). After which the project will be approved, rejected or send for reexamination.

Continuation of the SER depends on the project but cannot be more that 3 months after submission by the Initiator of the project with all EIA/IEE documents to SER. Public Environmental Review (PER) is organized and conducted by the initiation of the local people, local administrations and Civil societies, registered in the Kyrgyz Republic. The outputs of public environmental review is directed to the agency, which is implementing the state environmental expertise and to the agency, which is responsible for the decisions of implementing of the expertise objects.

Public Consultation had been held for the IEE during Feasibility Stage. The outputs of the public consultation are incorporated in the Public Environmental Review (PER) which can be done both stage of the OVOS or also initiated in parallel to the SER. The SER duration depends on the complexity of the project but should not exceed 3 months after submission of all the OVOS documents for the SER by the Project Proponent.

2.2. Legislation of the Kyrgyz Republic in the sphere of social assessment, land acquisition and resettlement

The legal and policy framework of the project is based on national laws and legislations related to land acquisition and compensation policy in the Kyrgyz Republic and WB ESS 5 – Land Acquisition, Restrictions on Land Use, and Involuntary Resettlement. Based on the analysis of applicable laws and policies and WB’s Policy requirement, project related LAR principles have been adopted.

The Constitution of the Kyrgyz Republic (June 27, 2010), Article 12 provides that: (i) the Kyrgyz Republic recognizes diversity of ownership forms and guarantees the equal legal protection to private, state, municipal and other types of ownership (article 12, clause 1); (ii) Land can be in private, municipal and other types of ownership with an exception of pasturelands that cannot be held in private ownership (article 12, clause 5); (iii) Ownership is inviolable, and no one can be dispossessed of property arbitrarily. Property can be acquired by the state against the person’s (party’s) will only based on a court ruling (article 12, clause 2); and (iv) Acquisition of property for the public purposes, as defined in the national laws, can be carried out only through court ruling and with fair and prior payment of compensation for the affected property, as well as for other costs (article 12, clause 2).

Civil Code (8 May 1996, No. 15; last amended 06 August 2018 No. 88)

The Civil Code (CC) provides that a party whose rights are violated can claim full compensation for losses, unless the national legislation or the agreements (contracts) prepared in line with the national legislation indicate the contrary (article 14, clause 1). The CC also specifies that the compensable losses include: (i) Costs that the party concerned has incurred or was going to incur in order to reinstate the party’s right (article 14, clause 2); (ii) Losses or damages of the property (article 14, clause 2); and

Lost profit that the party was supposed to receive under normal conditions, if the party’s rights were not violated (opportunity costs) (article 14, clause 2). In regard the compensation for losses caused by the state agencies and local self-government, article 15 states that the losses incurred on a citizen or legal entity as a consequence of illegal actions (or inactivity) of state agencies, bodies of local self-government or officials of these bodies, including issuance by a state body of an act that does not comply with legislation, are subject to compensation by the state, as well as local self-government authorities in the cases foreseen under the law.

Land Code (2 June 1999, No. 45; last amended 30 July 2019 No. 107) Article 68 of the Land Code (LC) defines withdrawal of land plot for state and public needs and provides that: (i) Land can be acquired (purchased) for state and public purposes based on agreement between the authorized body and landowner or land user. In case the land owner or land user disagrees with the acquisition (purchase), the authorized body can, within two (2) months, turn to the court with the request to carry out the acquisition with the payment to the owner or land user of the compensation for the land from the date of official denial of landowner/land-user (article 68, clause 1); (ii) When determining compensation for the land being acquired, it should reflect the market value of the right to the land and associated structures, losses that the land owner or land user incurs, and liabilities to third parties (article 68, clause 3); and (iii) When acquiring land for the state or public purposes with the consent of the land owner or land user, the owner/user can be allocated replacement land with the value of this land to be counted towards compensation for the land acquired.

The Land Code specifies that the right to the land and associated structures can be terminated, among others, when land is needed for state or public purposes. (article 66, clause 1). The acquisition of the land for state and public needs can be affected only after payment of the value of the right to the land plot and compensation for losses (article 66, clause 4). The land owner or user has the right to claim the compensation, as specified by the legislation of the Kyrgyz Republic (article 49, clause 1, sub-clause 5).

Finally, the Land Code (article 78, clause 2) also specifies the use regime with regards to the lands of common use. It particularly indicates that lands of common use in settlements, towns, and villages (e.g. roads, streets, squares, sidewalks, driveways, park bands, boulevards, mini parks, water bodies, etc.) cannot be in private ownership, and only in exceptional instances can be rented by the authorized state body to legal entities and individuals for a maximum of 5 years. The authorized state body may permit construction of light-weight structures on the lands of common use (clause 78, clause 3).

Law on State Registration of Rights of Immovable Properties and Associated Transactions (22 December 1998 No.153, last amended 6 August 2018 No.88). This law states that State registration of rights of immovable properties and associated transactions is a legal act of recognition and confirmation of rights to immovable properties and their encumbrances (restrictions), as well as real estate transactions, providing protection for the rights and encumbrances (restrictions), except as provided in this Law (article 1). Any other document or entitlements and their limitations, are subject to mandatory registration in accordance with article 4 of this Law, submitted to the registration authority not later than thirty days from the date of the (drafting) of the above document (article 7).

The property rights, which are not subject to the registration, but are recognized and protected by the state include (article 6): 25

• Access rights to the communication lines, pipelines, geodesic localities, and other pieces of infrastructure meant for public use; • Rights of spouses, children, and other individuals; • Temporary rights, lease or sub-lease for a period of under 3 years; • Actual use rights for the primary or preferential use of the property; • Rights arising from the taxation requirements; • Encumbrances arising from the common rules on healthcare, public safety, environmental protection etc.

Regulation on Assets Valuation

The valuation of the assets is carried out based on the Temporary rules for the valuators and valuation companies (Government Resolution, as of 21 August 2003, No 537), Valuation standards for the valuators (Government Resolution, 03 April 2006, No 217) and other provisions of national legislation.

Law on Grievances (4 March 2007, No.67 last amended on 27 July 2016, No. 151). The Law on Grievances provides that the grievance from the Kyrgyz Republic citizens should be registered, given due consideration, and addressed in an equitable, timely and accountable manner (article 2 and 4). Every citizen has the right to apply personally or through his representative to state authorities, local authorities and their officials, who are obliged to provide a reasoned response within the time period established by law (article 4). The grievance registered with the state agency or the local government should be processed within 14 working days, it can be prolonged exceptionally for no longer than 30 days (article 8).

Labor Code (4 August 2004 No. 106, last amended on 26 June 2018 No. 62). Labor Code is the fundamental legislative act aimed to regulate all labor matters arising in the Kyrgyz Republic. This Code governs employment relationships and other relations, directly related, directed to protection of the rights and freedoms of the parties of employment relationships, establishment of the minimum guarantees of the rights and freedoms in the sphere of work. Article 9 of the Code prohibits discrimination and guarantees that all citizens have equal rights to work; discrimination in labor relations is prohibited. Any differences, non-admission or preference, denial of employment, regardless of nationality, race, gender, language, religion, political beliefs, social status, education, property, leading to a violation of equality of opportunities in the field of labor, are prohibited.

Law on local self-government (15 July 2011 No.101, last amended 8 August 2019 No.118) This Law establishes the principles of local self-government organization at the level of the administrative- territorial units, defines the role of local self-government in the exercise of public authority, establishes the organizational and legal foundations of their activities, establishes the competence and principles of relations between local authorities and public authorities, state guarantees of local law communities on self- government.

Local self-government is carried out, among the others, on the principles of: - openness and responsibility of local governments to the local community and the exercise by them of their functions in the interests of the local community; - the will of citizens through a system of local self-government, as well as through the citizens meetings and kurultai; - protection of the rights and legally protected interests of local communities; - publicity and consideration of public opinion.

Local governments operate in close cooperation with state authorities to create conditions for the implementation of the constitutional rights of citizens of the Kyrgyz Republic to participate in resolving issues of state and local importance.

2.3. The World Bank Environmental and Social Standards

The World Bank Environmental and Social Framework sets out the World Bank’s commitment to sustainable development, through a Bank Policy and a set of Environmental and Social Standards that are

designed to support Borrowers’ projects, with the aim of ending extreme poverty and promoting shared prosperity.

The Environmental and Social Standards6 set out the requirements for Borrowers relating to the identification and assessment of environmental and social risks and impacts associated with projects supported by the Bank through Investment Project Financing. The Bank believes that the application of these standards, by focusing on the identification and management of environmental and social risks, will support Borrowers in their goal to reduce poverty and increase prosperity in a sustainable manner for the benefit of the environment and their citizens.

The standards will: (a) support Borrowers/Clients in achieving good international practice relating to environmental and social sustainability; (b) assist Borrowers/Clients in fulfilling their national and international environmental and social obligations; (c) enhance nondiscrimination, transparency, participation, accountability and governance; (d) enhance the sustainable development outcomes of projects through ongoing stakeholder engagement.

The ten Environmental and Social Standards establish the standards that the Borrower and the project will meet through the project life cycle, as follows in Table 2:

6 www.worldbank.org/en/projects-operations/environmental-and-social-framework/brief/environmental-and-social-standards and http://projects-beta.vsemirnyjbank.org/ru/projects-operations/environmental-and-social-framework/brief/environmental-and- socialstandards

Table 2 – WB Environmental and Social Standards and their relevance to the current project

Environmental and Relevant to Main requirements and conducted activities to meet ESMF provisions in terms of addressing ESSs Social Standards this Project them requirements (yes or no) ESS 1 - Assessment and Yes ESS1 sets out the Client’s responsibilities for assessing, The project environment and social risks are rated as Management of managing and monitoring environmental and social risks substantial. The risks are due to the fragile social and Environmental and and impacts associated with each stage of a project environmental conditions, high uncertainty over sectoral Social Risks and supported by the Bank through policy priorities and directions, and diverse areas of Impacts Investment Project Financing, in order to achieve potential investments and inexperience of the client environmental and social outcomes consistent with the delivering ESF. Towards addressing them, following Environmental and Social Standards (ESSs). instruments have been prepared: (i) Environment and As required by this standard, the ESIA should be conducted Social Management Framework (ESMF): (ii) Social based on current information, including a description and Assessment based Inclusion Plan; (iii) Stakeholder delineation of the project and any associated aspects, and Engagement Plan (SEP); (iv) Resettlement Policy environmental and social baseline data at an appropriate Framework (RPF); and (v) Labor Management Procedures level of detail sufficient to inform characterization and (LMP). identification of risks and impacts and mitigation measures. The ESMF covers applicable ESF Standards and the World The assessment evaluates the project’s potential Bank Group’s Environmental Health and Safety environmental and social risks and impacts, with a particular Guidelines. The ESMF has checklists for determining attention to those that may fall disproportionally on where and when site specific Environment and Social disadvantaged and/or vulnerable social groups; examine Impact Assessments (ESIAs)/Management Plans (ESMPs) project alternatives; identify ways of improving project and Resettlement Plans (RAPs) will be necessary (for selection, siting, planning, design and implementation in resettlement, the criteria are also in the RPF). The ESMF order to apply the mitigation hierarchy for adverse also contains generic ESMP checklists for small-scale environmental and social impacts and seek opportunities to construction and local roads improvement and enhance the positive impacts of the project. maintenance envisaged by the project, rehabilitation and maintenance of water resources and water supply networks, waste disposal, and other investments that improve local living conditions, including those related to social infrastructure. ESS 2 – Labor and Yes ESS2 recognizes the importance of employment creation Based on the ESS2 requirements the client prepared the Working Conditions and income generation in the pursuit of poverty reduction LMP, specifying direct workers contractors and and inclusive economic growth. Borrowers can promote subcontractors. sound worker- management relationships and enhance the Direct workers. The implementing agency, ARIS, follows development benefits of a project by treating workers in the the national labor legislation and practices when hiring project fairly and providing safe and healthy working project staff. ARIS staff is not public /civil servants, as they conditions. ESS2 applies to project workers including are hired on contract basis for the implementation of a wide fulltime, part-time, temporary, seasonal and migrant range of development projects. The Agency applies two workers. types of employment contract: a one- year employment

Considering specified requirements, the Borrower must agreements and short-term service contracts. Majority of develop and implement written labor management staff are permanent staff with one-year employment procedures applicable to the project. These procedures agreements with fixed monthly wage rates. All the should set out the way in which project workers will be recruiting procedures are documented and filed in the managed, in accordance with the requirements of national folders. Monthly timesheets are also filed and kept law and this ESS. The procedures should address the way in accurately. Forty hour per week employment is practiced which this ESS will apply to different categories of project and recorded on paper. workers including direct workers, and the way in which the Contractors. The Contractors follow the legal provisions of Borrower will require third parties to manage their workers the Kyrgyz Republic Labor Code. ARIS will also procure in accordance with ESS2. services of local service providers/civil works vendors at the national and local level. They will recruit local staff and issue employment contracts and service contracts for the employed people. The Contractors will have to follow Occupation Safety and Health rules, which include among others strictly implementation established norms and procedure H&S which depends on type on conducting works, usage of PPE, training activities and monitoring. Sub-contractors. The sub-contractors (including local private firms) will be recruited by the contractors to implement project activities in the project areas. They are obliged to follow the local labor legislation and regulations during the sub-project implementation. The ESMF includes sections on Environment Health and Safety (EHS) including specific instruments that will need to be prepared either by the client or the contractor prior to commencement of works (ESH checklists, codes of conduct; safety training etc.). Civil works contracts will incorporate social and environmental mitigation measures based on the WBG EHS Guidelines and the ESMF. All civil works contracts will include industry standard Codes of Conduct that include measures to prevent Gender Based Violence/Sexual Exploitation and Abuse (GBV/SEA). GBV assessment too has been done. A locally based Grievance Redress Mechanism (GRM) specifically for direct and contracted workers will be provided. ESS 3 – Recourse and Yes ESS3 recognizes that economic activity and urbanization The ESMF covers issues of resource efficiency and Efficiency, Pollution often generate pollution to air, water, and land, and consume pollution prevention and management, - Prevention and finite resources that may threaten people, ecosystem it requires that the ESIA studies and proposed mitigation Management services and the environment at the local, regional, and measures related to relevant requirements of ESS3, global levels. The current and projected atmospheric including raw materials, water use, air pollution, hazardous

concentration of greenhouse gases (GHG) threatens the materials, and hazardous waste are included within scope welfare of current and future generations. At the same time, of the site specific ESMPs, as relevant. more efficient and effective resource use, pollution prevention and GHG emission avoidance, and mitigation technologies and practices have become more accessible and achievable. This ESS sets out the requirements to address resource efficiency and pollution1 prevention and management throughout the project life cycle consistent with GIIP. ESS 4 – Community Yes ESS4 recognizes that project activities, equipment, and Community health and safety, such as the disruption of Health and Safety infrastructure can increase community exposure to risks and normal traffic patterns, and risks from unauthorized entry impacts. In addition, communities that are already subjected to the construction areas resulting in accidents, use of to impacts from climate change may also experience an agrichemicals, etc., - all these will be mitigated through acceleration or intensification of impacts due to project implementation of the ESMPs, which will include relevant activities. measures in this regard, including the provision of fences ESS4 addresses the health, safety, and security risks and to enclose areas of civil works, and the posting of warning impacts on project-affected communities and the signs and information in construction areas, providing corresponding responsibility of Borrowers to avoid or training and demonstrational activities, etc. minimize such risks and impacts, with particular attention to As specified in the ESMF, the project involves civil works, people who, because of their particular circumstances, may which require labor force to be supplied mostly locally, - it be vulnerable. is anticipated that due to the nature and scope of rehabilitation activities the level of labor influx will be insignificant so the associated risks will be low and manageable. ESS 5 – Land Yes ESS5 recognizes that project-related land acquisition and Land acquisition and resettlement is not expected to be a Acquisition, restrictions on land use can have adverse impacts on major issue for project activities requiring rehabilitation, Restrictions on Land communities and persons. Project-related land acquisition or however, it is expected to be involuntary resettlement Use, and Involuntary restrictions on land use may cause physical displacement activities in subprojects requiring a rehabilitation and new Resettlement (relocation, loss of residential land or loss of shelter), constructions of tourism facilities. Towards addressing economic displacement (loss of land, assets or access to such a situation, the Client has prepared a Resettlement assets, leading to loss of income sources or other means of Policy Framework (RPF), which describes the next steps livelihood), or both. The term “involuntary resettlement” on preparing and implementing resettlement action plans refers to these impacts. (RAP). The framework clarifies resettlement principles, Experience and research indicate that physical and organizational arrangements, and design criteria to be economic displacement, if unmitigated, may give rise to applied to subprojects or project components to be prepared severe economic, social and environmental risks: production during project implementation. systems may be dismantled; people face impoverishment if Once the subproject or individual project components are their productive resources or other income sources are lost; defined and the necessary information becomes available, people may be relocated to environments where their the framework will be expanded into a specific resettlement productive skills are less applicable and the competition for action. Project activities that will cause physical and/or

resources greater; community institutions and social economic displacement will not commence until such networks may be weakened; kin groups may be dispersed; specific plans have been finalized and approved by the and cultural identity, traditional authority, and the potential Bank. for mutual help maybe diminished or lost. Where Social screening is carried out to identify for possible social involuntary resettlement is unavoidable, it will be impacts and involuntary resettlement (IR). This ESMF minimized and appropriate measures to mitigate adverse provide a template to screen possible social impacts and IR impacts on displaced persons (and on host communities before the appraisal of each subprojects in Regional receiving displaced persons) will be carefully planned and Economic Development Project (RED). implemented. ESS 6 – Biodiversity Not relevant ESS6 recognizes that protecting and conserving biodiversity The activities envisaged by the project are small in scale Conservation and and sustainably managing living natural resources are and expected to be carried out in participating cities or the Sustainable fundamental to sustainable development. Impacts on existing agricultural lands, therefore, the standard is not Management of Living biodiversity can therefore often adversely affect the delivery currently relevant. However, as specified in the ESMF Natural Resources of ecosystem services. ESS6 recognizes the importance of document, site-specific potential risks for biodiversity will maintaining core ecological functions of habitats, including be assessed for each individual subproject and, if need be, forests, and the biodiversity they support. All habitats relevant mitigation measures will be included in the support complexities of living organisms and vary in terms ESMPs. All activities/subprojects located in natural of species diversity, abundance and importance. This ESS habitats (including wetlands, forests, mountain pastures, also addresses sustainable management of primary etc.) will be ineligible for the project financing and the production and harvesting of living natural resources. ESMF provides clear guidance and criteria on avoiding This standard aims to safeguard natural habitats and their project activities in natural habitats and any other protected biodiversity; avoid significant conversion or degradation of lands. critical natural habitats, and to ensure sustainability of services and products which natural habitats provide to human society. ESS 7 - Indigenous Not relevant as Peoples/Sub-Saharan there are no such African Historically social groups in Underserved the project area. Traditional Local Communities

ESS 8 – Cultural Yes ESS8 recognizes that cultural heritage provides continuity As the project activities might include rehabilitation of Heritage in tangible and intangible forms between the past, present cultural heritage sites, the ESMF includes a section on and future. It sets out measures designed to protect cultural protection of Cultural Heritage as well as proper "chance heritage throughout the project life cycle. The requirements find" procedures to be included in site specific of ESS8 apply to cultural heritage regardless of whether or ESIA/ESMPs and checklists. Although overall the small- not it has been legally protected or previously identified or scale activities envisaged are not expected to have direct disturbed - to intangible cultural heritage only if a physical physical impact on the heritage monuments, indirect component of a project will have a material impact on such

cultural heritage or if a project intends to use such cultural impacts from project financed activities will be closely heritage for commercial purposes. The Borrower will looked at and mitigation measures provided in the ESMF. implement globally recognized practices for field-based The document provides also the national requirements study, documentation and protection of cultural heritage in specified in the Law on Protection and Use of Historical connection with the project, including by contractors and and Cultural Heritage (1999), which establishes legal other third parties. A chance finds procedure is a project- norms for protection and use of tangible historical and specific procedure which will be followed if previously cultural heritage on the territory of the Kyrgyz Republic. unknown cultural heritage is encountered during project The law defines in case when construction/rehabilitation activities. It will be included in all contracts relating to works start before adopting new regulation, it will be construction of the project, including excavations, expediently to include in requirements for sub-contractor’s demolition, movement of earth, flooding or other changes in tender documents the conditions mentioned above (for the physical environment. related experience and specific background). To prevent damage to the existing objects/ sites of cultural heritage a Management Plan has to be prepared. The Contractor should respect and establish protection zones, procedures, management plans, in accordance to the plan and should be coordinated with MoCIT KR and local municipalities. ESS 9 – Financial Not relevant ESS9 recognizes that strong domestic capital and financial The project will not use Financial Intermediary bodies. Intermediaries markets and access to finance are important for economic development, growth and poverty reduction. FIs are required to monitor and manage the environmental and social risks and impacts of their portfolio and FI subprojects, and monitor portfolio risk, as appropriate to the nature of intermediated financing. The way in which the FI will manage its portfolio will take various forms, depending on a number of considerations, including the capacity of the FI and the nature and scope of the funding to be provided by the FI. FIs are required to develop and maintain, in the form of an Environmental and Social Management System (ESMS), effective environmental and social systems, procedures and capacity for assessing, managing, and monitoring risks and impacts of subprojects, as well as managing overall portfolio risk in a responsible manner. ESS 10 – Stakeholder Yes This ESS recognizes the importance of open and transparent Project preparation has done an extensive mapping the Engagement and engagement between the Borrower and project stakeholders stakeholders. Individuals and groups likely to be affected Information Disclosure as an essential element of good international practice. (direct beneficiaries) have been identified. They include: Effective stakeholder engagement can improve the the inhabitants of participating regions and municipalities environmental and social sustainability of projects, enhance (both urban and rural) as well as agricultural products project acceptance, and make a significant contribution to value-chain participants (farmers, local communities,

successful project design and implementation. The client traders, workers, contractors and transporters) and visitors will engage with stakeholders throughout the project life who will benefit directly from improved accessibility, cycle, commencing such engagement as early as possible in connectivity and infrastructure and services. Mapping of the project development process and in a timeframe that other interested parties such as government agencies/ enables meaningful consultations with stakeholders on authorities, CSOs and Private Sector, which may differ project design. The nature, scope and frequency of between subprojects, will be done during implementation. stakeholder engagement will be proportionate to the nature Given the highly diverse stakeholder profile and that their and scale of the project and its potential risks and impacts. expectations and orientation as well as capacity to interface In consultation with the Bank, the Borrower will develop with the project are different, a Stakeholder Engagement and implement a Stakeholder Engagement Plan (SEP) Plan (SEP) has been developed which identified and will proportionate to the nature and scale of the project and its continue to identify impediments during implementation as potential risks and impacts. well, if any, at reaching out to stakeholders and reflect/ build capacity of the client in engaging with stakeholders. The client has also developed a Grievance Redress Mechanism (GRM) to enable stakeholders air their concerns/ comments/ suggestions, if any.

2.4. Project risks assessment

As part of the environmental and social procedures, The Bank classifies all projects into one of four classifications: High Risk, Substantial Risk, Moderate Risk or Low Risk. In determining the appropriate risk classification, the Bank takes into account relevant issues, such as the type, location, sensitivity, and scale of the project; the nature and magnitude of the potential environmental and social risks and impacts; and the capacity and commitment of the Client to manage the environmental and social risks and impacts in a manner consistent with the Environmental and Social Standards7.

Although the potential project environmental risks would be typical for agriculture and construction activities, temporary and moderate in scale, predictable, and easily mitigable, considering the high uncertainty over sectoral policy priorities and directions, and diverse areas of potential investments, as well as weak knowledge of implementing entity of the ESF requirements, the project environmental risks at Appraisal stage are assessed as Substantial.

Social Risk Rating is “Substantial” as project areas are intrinsically diverse regions and are exposed to conflict and fragility risks which will have a bearing on the project outcomes; (i) inter-ethnic relations – inter-regional and international/cross border risks; (ii) geographical – certain sections could get excluded due to wide disparities within the regions – 95% of the territory is covered by mountains and valleys, making it difficult for better connectivity, delivering infrastructure and basic public services; (iii) economic risks – high rate of unemployment in particular among youth and significant dependency of household income on remittances which is vulnerable to external economic conditions and fluctuations; (iii) social risks – certain sections could get excluded either due to inherent structural deficiencies and/ or due to elite capture; and (iv) institutional risks – inadequate capacity of Ministry of Economy in ESS application. While the first two risks remain external to the project, the remaining has been addressed. The project, by design, will avoid undertaking any such activity which will result in physical and/ economic displacement. The social impacts are expected to be typical for small scale construction/rehabilitation works, temporary by nature and site specific, and can be easily mitigated by applying best construction practices and relevant mitigation measures. All social risks are identifiable and could be mitigated.

Taking all the above into account, overall risk rating can be qualified as ‘substantial’.

7 Only those ESS which are relevant for the project are covered

3. NATIONAL ESA INSTITUTIONAL FRAMEWORK

Identified potential government institutions and self-governing bodies to be engaged in RED are outlined in the Relevant Institutions Matrix in Table 3. They are divided into categories based on at what administrative level(s) the institutions represent: National, oblast, district, township/administrative unit of several villages/communities, or village.

Table 3: Relevant Government Institutions and Self-Governing Bodies involved in project implementation

Institution National level Oblast Rayon and City Ayil Aymak category (region) (district) (village level)

Government Government Office Oblast District and Ayil Aymak Administrations Administration town Administration and local self- administrations. governing bodies

Line Ministries Inter-Ministerial - - - and Agencies Working Committee (IMWC) Ministry of Inter-Regional - - Economy Department in the South Region Ministry of - District Department Agriculture, Food of agriculture Industry and development Melioration (MoAFIM) State Agency on Territorial - - Environment Department Protection and Forestry (SAEPF)

State agency on land - District/Town - resources/State branch institution “Cadatsre” State technical and Regional Regional - Environmental Department Department Safety Inspectorate Department of Regional Regional - Sanitary and Department Department Epidemiological Surveillance under Ministry of Health Ministry of Culture, Regional - - Information and Department Tourism

Inter-Ministerial Working Committee (IMWC). To ensure coordination and flow of information and timely decision making on strategic and programmatic aspects at the highest level, the project will be overseen by IMWC, formed with participation of the Deputy Minister or director level representatives from various relevant line ministries and government agencies (eg. Prime Minister’s Office, President’s Office, the Ministry of Finance (MOF), the MAFIM, ABCC, Ministry of Culture, Information and Tourism, Department of Tourism, Gosstroy, and Governor of the Osh region). This committee will be chaired at the level of Prime Minister’s Office with the MOE providing secretariat support.

Ministry of Economy. The Ministry of Economy of the Kyrgyz Republic develops and implements state policy in the field of macroeconomic, antimonopoly, tariff, licensing, investment, foreign economic, fiscal 35

policies, policies in the field of public-private partnerships, state material reserves, economic and regional development. The task of the Ministry is to ensure socio-economic progress and sustainable development of the Kyrgyz Republic.

The Ministry of Agriculture, Food Industry and Melioration of the Kyrgyz Republic. The Ministry of Agriculture, Food Industry and Melioration (MoAFIM) of the Kyrgyz Republic is responsible for implementation of the state policy in the field of agriculture, land, irrigation and land reclamation infrastructure, and processing industry. The goal of the Ministry is to ensure food security, development of agricultural production and processing industry of the Kyrgyz Republic.

The tasks of the Ministry are: - formation of a unified state policy for the development of agriculture, water, fisheries and the processing industry, as well as for ensuring veterinary-sanitary, phytosanitary safety and safe handling of pesticides and agrochemicals; ensuring the state’s domestic needs for agricultural products and increasing the country's export potential; identifying priority areas and strategies for the development of innovative research, based on the needs of producers and processors of agricultural products, as well as national interests, promoting the implementation of the achievements of science and technology in the practice of production;

The State Agency for Environmental Protection and Forestry. The State Agency for Environmental Protection and Forestry (SAEPF) is the key institution responsible for the establishment and implementation of environmental policy in Kyrgyz Republic. The Department of the State Ecological Expertise and Environmental Management under the SAEPF is responsible for reviewing environmental assessment documents. The State Ecological Expertise procedure is mandatory to any plans or projects with anticipated adverse impact on the environment and if activity is listed in law on EIA. According to the law, no project shall be considered fully operational without positive opinion of the State Ecological Expertise.

Ministry of Health (Department of Sanitary and Epidemiological Surveillance). The Ministry of Health develops and approves sanitary regulations, rules, and hygienic standards, carries out state sanitary supervision over their observance as well as methodological supervision of the work of sanitary and epidemiological services, regardless of their departmental subordination.

The State institution “Cadastre” under the State Agency for Land Resources, - under the Government of the Kyrgyz Republic (hereinafter referred to as the State Institution “Cadastre”) is a subordinate unit of the State Agency for Land Resources under the Government of the Kyrgyz Republic, conducting land cadastre, cadastral mapping, registration of rights to real estate and transactions with it, and providing state protection of registered rights to real estate.

The State Inspectorate for Technical and Environmental Safety. The State Inspectorate for Technical and Environmental Safety (SITES) is the exercise of state supervision and control over ensuring compliance with safety standards for life and health of people, flora and fauna, the environment and prevention of negative consequences.

The Ministry of Culture, Information and Tourism. The Ministry of culture, information and tourism is responsible for implementation of a unified state policy in the fields of culture, information and tourism; preservation, use and development of historical and cultural heritage; creating conditions for the development of folk art, citizen participation in cultural life and the organization of leisure activities of the population; making proposals on creating favorable investment conditions for the development of tourism facilities and infrastructure; promoting the growth of the quality of services provided by the tourism sector; and formation and support of a positive image of the Kyrgyz Republic as a country favorable for tourism.

4. BASELINE ANALYSIS

4.1. Location and Size

The Kyrgyz Republic is a landlocked country in the mountainous part of Central Asia (Figure 2). The area of country is 199.9 thousand km². The Kyrgyz Republic is a landlocked country with mountainous terrain. It is bordered by Kazakhstan to the north, Uzbekistan to the west and southwest, Tajikistan to the southwest and China to the east. Its capital and largest city is Bishkek.

Figure 2. Map of Kyrgyz Republic

The project will be implemented in two towns of Osh oblast of the Kyrgyz Republic: Osh and Uzgen Cities, and in other districts and municipalities of Osh oblast. Locations of the selected cities within Osh oblast are presented on the Figure 3.

Figure 3. Administrative map of Osh Oblast

• The Osh Oblast occupies an area of 29,200 km2 and has a population of 1.176 million people. Osh Oblast is comprised of seven districts: Alai, Aravan, Kara-Kulja, Kara-Suu, Nookat, Uzgen, and Chon-Alai. The Oblast has 3 cities and 2 towns, 85 rural districts/aiyl okmots (AO), and 467 rural settlements (2015 data).

• Uzgen district was formed in December 1928. The Uzgen district borders on the east with the Kara- Kulja district of the Osh oblast, in the north the Suzak region of the Jalal-Abad region, in the south the Alai region of the Osh region, in the west the Andijan region of Uzbekistan. The total area of the district is 3.4 thousand square km and population is over 270 thousand people (2017 data).

• City of Uzgen is the administrative center of the Uzgen district of the Osh region. Located 54 km north-east of the city of Osh, on the right bank of the Karadarya River (Syr Darya basin). On the Bishkek-Osh highway. Uzgen is a medium-sized city with a network of outlets and providing various services (including the services of enterprises for processing agro-industrial products for nearby rural territories).

• Kara-Suu district was formed in 1935. The Kara-Suu district borders on the east with the Uzgen district of the Osh oblast, in the north the Andijan region of Uzbekistan, in the south the Alay district of Osh oblast, in the west the Aravan and Nookat districts of Osh oblast. The total area of the district is 3.6 thousand square km and population is over 390 thousand people (2015 data).

• Nookat district borders on the east with the Kara-Suu district of the Osh oblast, in the north the Aravan district of Osh oblast, in the south the Chon-Alai region of the Osh region, in the west the Kadamjay region of Batken oblast. The total area of the district is 3.2 thousand square km and population is over 270 thousand people (2015 data).

• Alay district was formed in December 1928. The Alay district borders on the east with the Kara- Kulja district of Osh oblast, in the north the Kara-Suu district of Osh oblast, in the south the China, in the west Chon-Alay of Osh oblast. The total area of the district is 7.6 thousand square km and population is over 80.6 thousand people (2015 data).

• Chon-Alay district was formed in December 1992. The Alay district borders on the east with the Alay district of Osh oblast, in the north the Nookat of Osh oblast and Kadamjay district of Batken oblast, in the south the China, in the west Tajikistan. The total area of the district is 7.6 thousand square km and population is over 80.6 thousand people (2015 data).

• Aravan district borders on the east with the Kara-Suu district of Osh oblast, in the north the Andijan region of Uzbekistan, in the south and west Nookat region of Osh oblast. The total area of the district is 1.3 thousand square km and population is over 119 thousand people (2015 data).

4.2. Physical environment

4.2.1. Climate and Rainfall

The country's climate is influenced chiefly by the mountains, the Kyrgyz Republic's position near the middle of the Eurasian landmass, and the absence of large enough water bodies to influence weather patterns. Those factors create a distinctly continental climate that has significant local variations such as fluctuations in the air temperature, precipitation, hours of sunshine, solar radiance and cloudiness. By climatic conditions, the Kyrgyz Republic is divided into several climatic belts (Figure 4). Frosty weather persists until the end of February and intrusions of cyclones from the south-west during the cold period of the year bring humid, tropical air from the Mediterranean and the Arabian seas, with heavy precipitation in Fergana Valley and on the slopes around it.

Figure 4. Climate classification of the Kyrgyz Republic.

The climate of Osh Oblast is characterized by vertical zonation. Flat valleys and the foothill zone are characterized by hot summers (up to 28°C) and moderately cool and snowless winters. The highest precipitation levels are in Uzgen district and reach up to 1,000 mm/year. The lowest precipitation levels are in Chon-Alai and Aravan districts (up to 300 mm/year).

4.3. Topography and Drainage

The Osh region includes the northern slopes of the Trans-Alay mountain range, and the southeastern part of the Fergana mountain ranges. Alai mountain system has almost latitudinal strike and is characterized by relatively flat northern slope complicated by a series of sharply defined foothill ridges. The northern slopes of the Trans-Alay mountain range are high with altitudes ranging from 2,200 to 7,134 masl (e.g. Lenin Peak). The southeastern part of the Fergana range is characterized by a pronounced zonal relief structure. Ferghana Valley, the eastern part of which is in the Osh region, is relatively flat with an altitude from 800- 39

1.000 masl. It is replaced by the adyr zone (up to 1500 m), then the area of advanced high foothills and mountain ranges (up to 2000 m), and finally by the alpine zone (up to 3500-5000 m).

4.3.1. Soils and Geology

One of the most distinctive features of the geological structure of the Kyrgyz Tien Shan is the presence of two megacomplexes of its constituent rocks. The lowest of these is represented by a highly dislocated variety of sedimentary, igneous and metamorphic rocks of Paleozoic and pre-Paleozoic age, and the upper consists of weakly metamorphosed mainly continental sedimentary Mesozoic and Cenozoic strata. The layers of the lower megacomplex are composed by numerous ranges of the Tien Shan and foundation of the intermountain basins, and Cenozoic deposits fill intermountain basins and foothills. The orogenic system divides the territory of the Kyrgyz Republic into three parts: Northern, Middle and Southern Tien Shan. Osh Oblast belongs to the Southern Tien Shan.

The Hercynian fold system of the Southern Tien Shan is located southward of the folded structures of the Middle Tien Shan. The South Tien Shan fold system belongs to the sedimentary and volcanic strata of the middle and upper Paleozoic. Lower Paleozoic and Precambrian rocks make up the base of the Hercynian folded complexes. Most outcrops of the Lower Paleozoic deposits are limestone, chert, clay and siliceous shales, sandstones containing fossils Cambrian and Ordovician.

In the lower parts of the region at an altitude of 900-1,500 masl there are gray soils (light, dark and typical ones). At altitudes of 1,500-3,000 masl there are different subtypes of brown soil (typical, carbonate), and in the more humid areas under spruce forests there are dark brown leached soils. In the subalpine zone there are meadow-steppe and mountain meadow soils

4.3.2. Hydrology

Lakes and Rivers in Osh Oblast. The Ak-Bura River, which bisects Osh, is part of the Naryn River basin. The Naryn River rises in the Tian Shan mountains and flows west through the Fergana Valley into Uzbekistan. Here it merges with the Kara Darya River to form the Syr Darya. The Ak-Bura River starts in the mountains approximately 150 km south of Osh and flows roughly in a northerly direction through Osh and into Uzbekistan and the Naryn River basin. It has a water catchment area of 2,430 km2 with an average altitude of 3,030 masl. Papan Reservoir, constructed in 1981, is approximately 20 km upstream of Osh City center.

4.4. Land Use

The most important problems in land use are soil erosion and salinization in improperly irrigated farmland. An estimated 60% of the Kyrgyz Republic's land is affected by topsoil loss, and 6% by salinization, both problems with more serious long-term than short-term effects. Uncertain land tenure and overall financial insecurity have caused many private farmers to concentrate their capital in the traditional form— livestock—thus subjecting new land to the overgrazing problem.

Osh oblast has 129211 hectares of irrigated land, of which 123941 hectares are in good condition, 2524 hectares in satisfactory and 3992 hectares (2%) in unsatisfactory due to the close occurrence of UGV - 2746 hectares, due to salinization of soils 1098 hectares.

The issue is especially acute in Uzgen and Aravan regions. In these areas, it is necessary to strengthen control over the reclamation state. So, for example, in the Uzgen district it is necessary to repair and restore 66 old wells and build 20 new ones, in the Aravan region to repair and restore 45 wells, in the Kara-Suu district to create an observation network and in the Nookat region to restore 26 idle wells. 2300 ha of irrigated land are prone to overgrowing with reeds. (data from the Ministry of Agriculture and Land Reclamation of the Kyrgyz Republic).

4.5. Biological environment

4.5.1. Fauna 40

The fauna of Osh Oblast is diverse: in the walnut-fruit forests there are foxes, wolves, badgers, weasels, brown bear, wild boar, roe deer, and porcupine; and in the high mountains there are mountain goats and snow leopards.

4.5.2. Flora

The world largest walnuts and fruit forests located in the KR covering 70,000 hectares. They represent a unique natural formation and primarily grow in Ferghana and Chatkal ranges at the elevation of 1,000-2,200 masl.

Vegetation is typically zoned by altitude. To the north, in the foothills (adyrs), at altitudes up to 1,500 masl there is wormwood-ephemeral-halophytic semi-desert vegetation. Higher at the slopes of the foothills and low mountains up to 2,000 m, there are fescue feather grass steppes with piliferous couch grass westward and bulbous barley and saryndyz to the east. At 3,000 masl there are juniper forests and woodlands in combination with fescue-feather grass and meadow steppes are located. Above 3,000 masl subalpine and meadow steppe begins interspersed with rocks. In the east, where there is more rainfall, fescue-feather grass steppes are followed by alpine meadows. Above there is the forest zone, where there are walnut-fruit (mainly on the slopes of the Fergana ridge), maple, juniper and fir forests. At an altitude of 3,000 m, subalpine meadow and meadow steppe, dominated by the rocky ridges and rocky slopes appear. To the south, in the Alai Valley, in the lower parts (up to 3000 m) there are subalpine and alpine meadows, prairies, grasslands and alpine desert steppes.

4.6. Protected Areas

There are 17 State Reserves and Natural Parks that represent the national system of Specially Protected Areas in the KR (Table 4).

Special Protected areas in the project area. As noted in Table 4, there is one State Reserve (Zapovedniks) in Osh Oblast, namely Kulun-Ata. In addition, there are two National Natural Parks, Kara-Shoro and Kyrgyz-Ata. In addition, approximately 20-30 km southeastward from Osh City there is the Ak-Bura Wildlife (Zoological) Refuge covering an area of 13.5 thousand ha. However, some of these State Reserves, Natural Parks or Wildlife Refuges general access zones (main entrances) likely to be affected by project small-scale activities focused on improvement of tourist infrastructures, like solid waste collection points, sanitation infrastructure, information points & signages.

Table 4: List of Natural Specially Protected Areas

# Name of protected Area Square (ha) Year of Province/ Distance from establishment Oblast project cities State reserves 1. Besh-Aral 81,600 1979 Jalal-Abad 2. Sary-Chelek 23,868 1959 Jalal-Abad 3. Padysha-Ata 15, 846 2003 Jalal-Abad 4. Karatal-Japyryk 21, 264 1994 Naryn 5. Naryn 36,969 1983 Naryn 6. Sarychat-Ertash 72, 080 1995 Issyk-Kul 7. Issyk-Kul 19, 086 1948 Issyk-Kul 8. Kulun-Ata 24,000 2004 Osh 90 km 9. Kara-Buura 68,445 2006 Talas National Natural parks 1. Besh-Tash 32,441 1997 Talas 2. Saimaluu-Tash 32,000 2002 Jalal-Abad 3. Ala-Archa 4,000 1976 Chui 4. Chong-Kemin 126,514 1997 Chui 5. Salkyn-Tor 10,000 2001 Naryn 6. Kara-Kol 38,256 1997 Issyk-Kul 7. Kara-Shoro 8,450 1996 Osh 75 km 8. Kyrgyz-Ata 11,172 1992 Osh 43 km Source: State Agency on Environmental Protection and Forestry, 2006; The Kyrgyz Republic: Environment and Natural Resources for Sustainable Development, Bishkek, 2007.

4.7. Socio – economic background

4.7.1. Economy

Agriculture is by far the most important livelihood activity in the KR, contributing to one-third of GDP and employing two-thirds of the population. Industrial processing, the second most productive sector, also highly depends on the agricultural sector for provision of raw goods (GFDRR 2014). Significant subjects of agriculture, forestry and fishing. January 1, 2018 over 429 thousand actives registered in the republic economic entities operating in the field of agriculture, forestry and fishing. Of these, about 323 thousand, or 75.4 percent of the total number of such entities, came from peasant (farmer) enterprises, 105 thousand entities, or 24.6 percent from individual entrepreneurs engaged in agricultural production. A significant number of such business entities accounted for Osh Oblast - 116.5 thousand, or 27.2 percent of the total, Jalal-Abad - 98.8 thousand, or 23.0 percent, and Chui Oblast - 65.5 thousand, or 15.3 percent.

The number of private farms increased from 318,815 in 2009 to 356,642 in 2012, dropping the average arable land holding from 2.73 ha to 2.5 ha per farm. Agriculture is important sector in the Osh Oblast economy, and the oblast generates more than 20 percent of the KR’s cereal production, about 40 percent of its potatoes, and about 20 percent of fruits and vegetables (Table 5). There is a significant opportunity to increase agricultural growth, given the potential advantages of trade access and export markets within the Eurasian Economic Union, WTO and increasingly open Central Asia regional markets.

Table 5. Main crops and livestock production in Osh oblast in 2018

Gross Percentage to harvest, tons 2017 Grains - only in weight after refinement (without legumes, rice and 294126,2 98,9 buckwheat) wheat (in weight after refinement) 88834,6 90,2 Barley (in weight after refinement) 30033,6 110,2 corn for grain 175258,0 102,2 Raw cotton (in test weight) 31997,0 117,4 Oilseeds-total 5259,6 74,9 Potato 204418,1 101,0 Vegetables 167928,9 99,2 Melons 55841,3 102,1 Fruits and berries 52894,1 102,5 Cattle and poultry for slaughter (in live weight) 83008,8 101.5 Raw milk, tons 316156,1 101.8 Wool, tons 2287,4 100.6 Source: NSC Osh oblast Yearbook 2017/2018

Tourism is a promising sector for economic development in the KR because of its ability to generate jobs and income, and because it is one of the few industries that has expanded in the post-independence era. The KR in general and the Osh Oblast in particular have significant tourism potential due to a combination of natural resources, diversified landscapes, and unique cultural heritage. However, currently this potential is only partially exploited due to (i) the remoteness of the country from major markets and limited access to regional markets; (ii) underdeveloped transport and tourism infrastructure; and (iii) insufficient hospitality skills and marketing efforts.

Osh Oblast is one of the important tourist sites in the KR. Attractions include the scenic beauty and environmental interest of the Alay mountains; horseback riding in the mountains and foothills; community- based tourism for those wishing to sample traditional local ways of life; and a variety of important cultural and historical sites and monuments. Several architectural monuments, like Historical, cultural and natural museum - "Sulayman-Too" reserve, The Uzgen Historical and Cultural Complex "Uzgen" and the historical and cultural complex “Shax Fazil”, “Shah-Fazil” mausoleum were included in the priority historical and natural sites of the Kyrgyz Republic included in the State tourism sector development program for 2019-2023.

In terms of financial performance, Table 6 contains the revenues of tourism firms for 2015 broken down by specialization and location. Clearly, tour operators and travel agencies are most active in the capital city of Bishkek and Issyk-Kul province, accounting for 63.4% and 31.6%, respectively, of the total receipts, where the share of revenue of Osh Oblast is negligible.

Table 6. Revenue by type of service and location in 2015, millions of Kyrgyz soms

Tourist & Resorts, Hotels, Restaurants, Total travel firms sanatoria, guestrooms cafeteria other facilities Bishkek city 860.9 -- 2.532.2 4.264.5 7,657.6 Osh city 52.3 5.3 100.4 992.7 1,150.7 Issyk-Kul oblast 429.1 648.1 360.5 223.3 1,661.0 Chui oblast 6.1 28.1 35.4 610.6 680.2 Naryn oblast 2.2 2.6 11.5 32.9 49.2 Osh oblast 3.0 18.9 12.8 498.9 533.6 Batken oblast -- -- 10.1 368.4 378.5 Talas oblast 3.3 -- 33.5 109.7 146.5 Total 1,356.9 769.3 3,211.8 8,312.9 13,650.9 Source: KNSC, 2016. Tourism in the Kyrgyz Republic, 2011-2015

4.8. Cultural Heritage

WB ESS8 on Cultural Heritage recognizes that cultural heritage provides continuity in tangible and intangible forms between the past, present and future. People identify with cultural heritage as a reflection and expression of their constantly evolving values, beliefs, knowledge and traditions. Cultural heritage, in its many manifestations, is important as a source of valuable scientific and historical information, as an economic and social asset for development, and as an integral part of people’s cultural identity and practice. ESS8 sets out measures designed to protect cultural heritage throughout the project life cycle.

Physical cultural resources (PCR) are movable or immovable objects, sites, structures, natural features and landscapes that have archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance. PCRs may be located in urban or rural settings and may be above or below ground or under water. Their cultural interest may be at the local, provincial, national, or international level. These PCRs could include graves and cemeteries; religious buildings (intact or in ruins) and objects; sacred caves, forests, hills or cliffs; and historical artifacts, tools, relics and memorials. such as cultural, religious, historical or archaeological sites, including sacred sites, graveyards and burial places, that might be affected during proposed civil works;

4.8.1. Primary Data Sources

The Kyrgyz Republic is maintaining list of PCRs, an invaluable source of baseline data, which were carefully examined during the archeological survey.

• State List of Republican Values Monuments of History and Culture of the Kyrgyz Republic (as amended by Decree of the Government of the Kyrgyz Republic, August 11, 2003 #503, November 14, 2003 #718, August 10, 2004 #590, December 9, 2004 #904, December 18, 2004 #943, June 27, 2005 #60, July 29, 2005 #326) consists of two parts. • Lists of historical and cultural monuments of local importance on the regional and district levels is almost completely duplicate State List of republican values Monuments of History and Culture of the Kyrgyz Republic.

The first part is a list of historic settlements and other populated areas of the Kyrgyz Republic, with a large number of historical and cultural monuments, urban ensembles, as well as containing ancient cultural layers (Bishkek, Osh, Uzgen, Safid-Bulan).

The second part is in tabular form with a numbered list of sites (number of objects, the name, the typological identity, dating, address (location of the monument). information about the precise location of any PCR is not provided to reduce the risk of theft, information about historical dates of many objects is left blank.

4.8.2. PCRs in the Project Area

Several architectural monuments, like Historical, cultural and natural museum - "Sulayman-Too" reserve, The Uzgen Historical and Cultural Complex "Uzgen" and the historical and cultural complex “Shax Fazil”, “Shah-Fazil” mausoleum were included in the priority historical and natural sites of the Kyrgyz Republic included in the State tourism sector development program for 2019-2023.

The Osh oblast territory has a long history of human occupation dating back more than 3,000 years, and the area has extensive PCRs, including:

a. Stone Age tools; bronze and gold relics of the Saka tribe dating from 600 BCE to 500 CE; b. Petroglyphs, depicting hunters and animals, some from the late Bronze age (1,500 BCE) and others from the Saka period; c. Burial grounds from various times including the Saka period; d. Medieval towns, monuments, stone sculptures, and other relics from the period of Turkish control from 600 to 1200 CE; e. Sites along the Silk Road, one route of which is believed to have passed through current territory of Osh oblast; and 44

f. Sites, buildings and monuments from the Soviet period.

There are believed to be thousands of cultural and historic monuments in the Osh oblast territory, which are under government protection. According to KR legislation, these monuments may be sub-divided into three major groups: (i) protected monuments with national status; (ii) protected monuments of regional or local importance; and (iii) identified monuments without legal protection. Cultural landscapes, or landscapes modified by ancient human activity, are also recognized as a form of cultural heritage in the KR, though their legal definition and protection status is not clearly formulated in the current legislation and regulations. Cultural landscapes may be classified as being of particular interest in terms of history, such as landscapes associated with historical events.

Many cultural and historic sites collectively form archaeological complexes. For example, petroglyphs are often arranged in mounds in fields, and these sites in many cases are situated near ancient tombs, stone sculptures, ancient settlements, bronze and iron artifacts, and so on. Archaeological complexes are a subcategory of cultural landscapes. Studies undertaken by local archaeologists and monitoring by local museums indicate that the region’s cultural sites are at risk, primarily due to uncontrolled economic development (agriculture, urban expansion) and allocation of land plots that occurs in an uncontrolled manner without compliance with relevant KR legislation.

5. SOCIO-ECONOMIC AND GENDER ANALYSIS

5.1. Demography

As of January 1, 2017, the total population of Osh oblast according to the National Statistical Committee of the Kyrgyz Republic is 1,3 million people, representing 20.6% of the KR population. Districts distribution of the population includes, 84.1 thousand in Alay district; Aravan district 127.5 thousand people; Kara-Kulja district 97.3 thousand people; Kara-Suu district 416.6 thousand people; Nookat district 280.6 thousand people; Uzgen district 264.6 thousand people; Chon-Alai district 30.1 thousand people. Administrative center of the region is Osh city, as a separate administrative unit of republican significance it has a permanent population of 285.4 thousand people.

There are 3 cities, 86 aiyl aimaks and 474 rural settlements in the region. The average population density is 42.4 people per km2, though in mountainous areas the population density is lower than the valleys and the border area with Uzbekistan where the population density can reach 300-400 persons/km². Approximately 70% of the Province’s population lives in rural areas.

Population demographics in Osh Oblast over recent years have been characterized by a birth rate higher than the national average and a mortality rate equal to the national average, resulting in a population growth rate of 2.4 percent in 2017, versus the national average growth rate of 1.9 percent. The area also experienced a negative although gradually decreasing migration balance, mostly due to the growing difficulties with naturalization in the Russian Federation, the primary emigration destination; in 2015 and 2016 the Osh Oblast lost only around 400 persons per year (NSC 2017).

Ethnic composition of the Osh Region according to the 2009 National Census (de jure population) is provided in Table 7:

Table 7: Ethnic composition of Osh Oblast.

Ethnic group Population Proportion of population

Kyrgyzs 758,036 68.6%

Uzbeks 308,688 28.0% Uygurs 11,181 1% Turks 10,934 1% Tajiks 6,711 0.6% Azerbaijanis 3,224 0.3% Russians 1,552 0.1% Tatars 1,337 0.1%

Dungans 793 0.1%

Other groups 1,792 0.2%

5.2. Income

The official and most reliable data on average income, expenditure and poverty levels are from the National Statistical Office in Bishkek. There are five cities in Osh Oblast8, so the average income levels may be somewhat lower than other urban areas of the country average figures, whereas expenditure, and poverty levels are higher than the country average figures.

8 The five cities in Osh Oblast are: Uzgen, Kara-Suu, Nookat, Gulcho, and Aravan.

Table 8 shows the average monthly incomes and expenditures per person from 2016 to 2017 for the urban areas of Osh Oblast and for all urban areas of the country.

Table 8: Monthly Incomes & Expenditures, Urban Areas, Osh Oblast and Kyrgyz Rep.

Year Monthly Income per Person in Urban Monthly Expenditure per Person in Areas Urban Areas (in KGS) (in KGS) Osh Oblast Kyrgyz Rep. Osh Oblast Kyrgyz Rep. 2016 3958,0 4655,2 3680,2 3408,3 2017 4500,9 5172,3 3943,9 3807,6 Source: National Statistical Committee, 2017

The urban population of Osh Oblast experienced an increase in the average monthly income per person of 13% from 2016 to 2017, i.e. over a two-year period. For all urban areas of the country, the increase in average monthly income per person during the same period was 27%. During all two years, the recorded average monthly income per person for all urban areas of the country was higher than for the five cities of Osh Oblast.

In 2017, for urban areas of Osh Oblast, for two years the average monthly income was higher than the average monthly expenditure. However, as is often the case, the monthly average income and expenditure figures mentioned in the table above should be used with much caution. Particularly, the recorded increase in the average monthly income per person from 2016 to 2017 for the urban areas of Osh Oblast appears high. This could indicate that there might have been changes in the data collection and/or registration processes.

The 2009 Census gives an unemployment rate of approximately 11% for the urban areas of Osh oblast. The unemployment rate for women (17%) was substantially higher than for men (8%). However, it is important to note that these data are several years old and possibly not accurate anymore.

The National Statistical Committee has registered the following poverty levels for 2012 and 2013 for Osh Oblast and for the national level.

Table 9: Levels of Poverty, 2012 and 2013, Osh Oblast and National Figures9

Osh Oblast Kyrgyz Republic Year Urban Rural Total Urban Rural Total 2012 54.8% 50.0% 51.4% 35.4% 39.6% 38.0% 2013 59.9% 42.0% 43.4% 28.5% 41.4% 37.0% Poverty definitions: 2012 - expenditure of up 26,181.89 KGS/person/year 2013 - expenditure of up 27,768.50 KGS/person/year Source: National Statistical Committee

The data available show that in 2013 approximately 60% of the urban population of Osh Oblast were poor.

In 2013, the poverty level for urban areas in Osh Oblast was more than double the average poverty level for all urban areas of the country, which was 29%. It was also substantially higher than the poverty level in Bishkek, where the recorded poverty level was 20%. Talas Oblast had the lowest urban poverty level. The recorded average poverty level in all urban areas of the country decreased by 7% from 2012 to 2013, while it increased by 5% in the urban areas of Osh Oblast.

The poverty levels registered for the urban areas of Osh Oblast in 2010 and 2011 were 47% and 48%, respectively, i.e. substantially lower than in 2012 and 2013. This indicates a trend of increasing poverty in

9 Information obtained from National Statistical Committee of the Kyrgyz Republic. This has been published in the document: Poverty Level of the Population of the Kyrgyz Republic 2007-2010, 2013 (“Sbornik”). 47

the urban areas of Osh Oblast. However, the poverty level for all urban areas of the country also increased substantially from 2010 to 2012. This indicates that the data collection and/or registration processes might have changed during these years. Interestingly, the poverty level in all urban areas of the country started decreasing from 2012 to 2013, while it continued to increase in the urban areas of Osh Oblast.

The Kyrgyz Republic’s HDI value and rank. The Kyrgyz Republic’s HDI value for 2017 is 0.672— which put the country in the medium human development category—positioning it at 122 out of 189 countries and territories. Between 1990 and 2017, the Kyrgyz Republic’s HDI value increased from 0.618 to 0.672, an increase of 8.8 percent. Table A reviews the Kyrgyz Republic’s progress in each of the HDI indicators. Between 1990 and 2017, the Kyrgyz Republic’s life expectancy at birth increased by 4.8 years, mean years of schooling increased by 2.3 years and expected years of schooling increased by 1.4 years. The Kyrgyz Republic’s GNI per capita decreased by about 4.8 percent between 1990 and 201710.

5.3. Gender analysis

In the National Development Strategy 2018-2040 and in the Program and Plan of the Government of the Kyrgyz Republic for the transition to sustainable development for 2013-2017. (SDAP) issues of the role of women, family and gender development are included in the priority areas and offer a fairly wide range of tasks and measures aimed at integrating the gender dimension in the country's sustainable development.

In 2012, for the first time, a long-term National Strategy for Achieving Gender Equality until 2020 was developed and adopted (approved by the Government of the Kyrgyz Republic dated June 27, 2012 No. 443), which was determined by the need to strengthen gender policy mechanisms in the context of deepening social inequality caused by political and economic crises of recent years11.

However, gender inequality remains a challenging issue especially related to economic and political empowerment. Women are less likely to be employed and, when employed, they earn on average 30 percent less than men. The difference in employment rates between males and females in Osh City had increased up to 45 percent in 2017. The gap in wage levels between men and women has also widened between 2013 and 2017, indicating a severe lack of appropriate economic opportunities that could potentially lead to serious social as well as economic issues. Actions are thus needed to enhance women’s participation in civic, political and economic activity – mainly through reversing the still elevated maternal mortality rate, closing the gap between male and female labor force participation, and reducing the disparity in wages.

According to the study “Women 2030” of NGO “Alga” (2018)12, women from Osh oblast work mostly in public sectors: education, social and health care. These jobs are financed from the state budget and characterized by lower-wages. Women also work at low-wage seasonal agricultural jobs, as there is the risk that hired work contracts do not adhere to the agreed wages. Alongside their employment, women are still responsible for housework (cooking, cleaning, washing and managing the heating of the household in winter months) and caring for children and elderly family members.

Over a long period of time, the share of women in the total population of the republic remains unchanged - 50.5%, many of whom live in rural areas and work in agriculture. Female employment has always formed an integral part of the labor force, especially in rural areas of country. Women have played an important role in sustaining the economy and contributing to family income through subsistence farming. Barriers to women’s entrepreneurship and employment are evident and range from household responsibilities to capacity and access limitations. Barriers reported, but not limited to 1) expectations to shoulder the burden of household responsibilities; 2) the need to manage household affairs while men migrate for labor; 3) limited access to financial resources.

10 http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/KGZ.pdf 11 This has been published in the document: gender aspects of the Sustainable Development in the Kyrgyz Republic, https://www.undp.org/content/dam/kyrgyzstan/Publications/sustainable-development/SD_gender_ru.pdf 12 https://www.women2030.org/wp-content/uploads/2018/11/GA_Alga-draft-final-12-nov-2.pdf 48

Gender based violence (GBV), approximately 95 percent victims of violent crimes in the Kyrgyz Republic are women. Domestic violence is widespread, affecting nearly one third of women and girls aged 15 to 49. Seven percent of women have suffered from violence during pregnancy and three percent of women aged 30 years and above have experienced sexual violence13.

In 2017, the Kyrgyz Republic adopted a new law "On Safeguarding and Protection Against Domestic Violence", the product of three years of joint advocacy by women’s CSOs of the country. The law improves protection measures for survivors and addresses implementation gaps in the previous domestic violence legislation14.

The accompanying Law on Amending Certain Legislative Acts of the Kyrgyz Republic on the Prevention and Protection of Domestic Violence, changes elements of the Administrative Code and other relevant laws. An important feature is that any victim of domestic violence, regardless of whether criminal proceedings are opened or not, can avail of the provisions. These include key rights, such as access to safe shelter, and medical and mental health services15.

According to Human Rights Watch (HRW) 2019 Report, long-term human rights concerns still persists in the Kyrgyz Republic, even as blatant attacks on media freedoms became less frequent, and the President of the Kyrgyz Republic appeared to seek more constructive engagement with civil society. Violence against women, including bride-kidnapping, and impunity for torture persisted. As authorities have stepped up counter-extremism measures, criminalizing possession of extremist materials, the overbroad definition of extremism, and breaches of due-process have led to human rights violations. In September, the Kyrgyz Republic’s Prime Minister signed a decree initiating ratification of the United Nations Convention on the Rights of Persons with Disabilities (CRPD), which the Kyrgyz Republic signed in 201116.

5.4. Key Beneficiaries

The beneficiaries for this project are the inhabitants of participating cities of Osh and Uzgen Cities and Osh oblast (both urban and rural), SMEs from the agricultural and tourism sectors, agricultural producers and visitors who will benefit directly from improved accessibility, connectivity and infrastructure and services. Both male and female inhabitants of participating localities are also expected to indirectly benefit from increased job opportunities. Indirect beneficiaries will be the aggregate number of visitors to the cities (for work, visit to markets, administrative, tourism and other purposes).

Osh regional authorities and Central Government counterparts will benefit from the project mainly through Component 3 initiatives on institutional and capacity strengthening. These include: (i) at the central level - Ministry of Economy; Department of Tourism under the Ministry of Culture, Information and Tourism; Ministry of Agriculture, Food Industry and Melioration (MoAFIM), Agribusiness Competitiveness Center (ABCC); and (ii) at the regional and local level - the regional Government in Osh Oblast, local administrations of Osh city, Uzgen City, and various districts within the Osh Oblast.

5.4.1. Vulnerable or disadvantaged subgroups among project beneficiaries

According to FAO National Gender Profile of the Kyrgyz Republic’s agricultural and rural livelihoods (2016), migration has a deep impact on the family members who stay behind, especially in rural communities of the country and Osh oblast in particular. Wives of migrants who remain behind, “carry a heavy burden of work within the household after their husbands leave”, especially as children and elderly family members are more likely to be excused from household work due to age, health issues or needing to concentrate on studies. Women are generally fulfilling their traditional role as carers for family members and the household, while also taking on roles usually undertaken by men, such as tending livestock and carrying out physically heavy agricultural work.

13 https://eeas.europa.eu/sites/eeas/files/kyrgyzstan_final_report_09.01.2018_approved_workshop_final.pdf 14 https://www.women2030.org/wp-content/uploads/2018/11/GA_Alga-draft-final-12-nov-2.pdf 15 https://eeas.europa.eu/sites/eeas/files/kyrgyzstan_final_report_09.01.2018_approved_workshop_final.pdf 16 https://www.hrw.org/world-report/2019/country-chapters/kyrgyzstan 49

The older generation, especially elderly women, also play an important role in raising their grandchildren and tending livestock or carrying some agricultural work, because a large number of Kyrgyz women migrate with their spouses.

Also, youth in rural communities are engaged in tending livestock & animal husbandry and leading farming practices in their land plots for further supply of grown agriculture products to wholesale buyers in agriculture value-chain directly or through lead farmers, who oversee production process, aggregate products and pay to the farmers. Youth in urban areas are involved in tourism and hospitality sector activities, like gastronomy, accommodation and transportation, in order to earn for living and support their households.

A lot of poor and low-income population, as well as population located in geographically isolated parts of the Osh region, are not sufficiently productive or do not have enough funds and assets to participate in agriculture producer groups and tourism sectors.

Disabled people of Osh oblast are potential project beneficiaries, as the project seek to create disabled people friendly conditions at the rehabilitated tourism and city infrastructure and promote their participation in tourism start-up and agribusiness components of the projects.

5.5. Stakeholder Segmentation/ Prioritization

This section identifies the key stakeholders of the project and summarizes their stakes in the proposed project activities. The stakeholder mapping process identifies the key stakeholders and assess their roles and responsibilities in the successful implementation of the project.

5.1.1 Identification

Following are the primary and secondary stakeholders of the project.

Primary stakeholders • Tourism and Agriculture SMEs • Osh and Uzgen Cities • ABCC (MoAFPLR) • Local communities

Secondary stakeholders • Relevant government departments (MoE, MoA, MoCIT) • Other tourism organizations).

5.1.2 Assessment of Role of Stakeholders

Different stakeholders may have different roles in the project’s implementation. The role assessment of stakeholders is based on five (05) parameters i.e. their contribution in the project; legitimacy of involvement; willingness of stakeholders to get engaged; influence of stakeholders and their necessity of involvement. These parameters are rated as high, medium and low based on the category and type of stakeholders.

Table 10 indicates that the Tourism and agribusiness enterprises, Osh and Uzgen Cities authorities and Osh oblast and districts authorities, local communities and government departments have the most significant roles in the successful implementation of the project. These stakeholders should be taken on board for making decisions related to the project and their consent and suggestions must be respected.

Table 10: Stakeholders’ role assessment rates

Stakeholder Contribution Legitimacy Willingness to Influence Necessity of Engage Involvement

High: The High: Cities are High: Cities are Osh and Uzgen High: Directly project planning the active in High: Well- Cities involved in cannot be project implementation known group Authorities project activities implemented activities of the project without Cities High: ABCC is High: ABCC is High: Must be ABCC High: Directly planning the active in High: Well- taken on board (Ministry of involved in project implementation known group for better Agriculture) project activities activities of the project planning. Tourism and High: Base of High: Controls High: Must be High: Eager to Agribusiness the business and High: Direct the major taken on board enhance the Enterprises backbone of beneficiary portion of for better business. tourism. economy. planning. High: The High: The project project is High: Local will be a focused to community is High: Controls Local High: Direct complete failure enhance keen to get the local Communities beneficiary without livelihood and engaged in the business involvement of economy of the project. local communities. communities. Low: Medium: Low: A separate Medium: Eager Other tourism Medium: Run Relatively Controls a business runner to enhance the organizations adventure clubs. unknown portion of group. business. groups. tourism. High: Government High: High: High: wants regional High: Cannot Government Unsustainable Government Government development proceed without plans and without has the highest departments through government finances the government influence on tourism and approvals. activities. support. the project. agribusiness development. Low: Medium: Medium: Medium: Eager Civil Society Medium: Work Relatively Controls a Indirect to enhance the Organizations for development unknown portion of beneficiary business. groups. tourism.

6. OPPORTUNITIES AND CONDITIONS FOR PARTICIPATION OF INTERESTED PARTIES IN THE DEVELOPMENT PROCESS

6.1. Citizen Engagement

During preparation of this project, the project activities have been identified through a participatory process engaging national, regional and local stakeholders. In addition, the studies for urban regeneration of Osh and Uzgen city cores were conducted in a participatory manner. All relevant stakeholders (including women and youth) have been engaged (including the public and private sector and representatives from local communities), study results have been presented, and citizen inputs have been considered for the project design. Also, the indicative long list of investments has been informed by citizens’ views and a tourism rapid assessment.

Citizen engagement in decision-making and project implementation processes are given special attention in the Kyrgyz Republic.

According to the Constitution of Kyrgyz Republic the people exercise their power directly in elections and referenda, as well as through a system of state bodies and local self-government on the basis of this Constitution and laws.

Law of Kyrgyz Republic on local self-government (15 July 2011 No.101, last amended 8 August 2019 No.118) states that local self-government is carried out, among the others, on the principles of (i) the willingness of citizens through the local self-government system, as well as through the citizens meetings and (ii) publicity and consideration of public opinion.

The Law of Kyrgyz Republic on Jamaats (Communities) and their associations (21 February 2005 No.36, last amended 18 July, 2014 No. 144) defines the order, principles of formation and activities of zhamaats (communities) and their associations created in villages, cities, and also regulates their relations with authorities government and local government, legal and individuals and aims to create legal and organizational framework for social mobilization in Kyrgyz Republic, provision of state guarantees to jamaats (communities) and their associations on self-government.

According to the Law "On the Ecological Expertise" citizens can conduct an independent public environmental examination. Although the conclusion of the public environmental examination has a recommendatory character, the conclusions of such examination shall be considered when preparing the Conclusion of the State Environmental Examination.

6.2. Proposed citizen engagement mechanisms

During preparation, the project activities have been identified through a participatory process engaging national, regional and local stakeholders. In addition, the studies for urban regeneration of Osh and Uzgen city cores were conducted in a participatory manner. All relevant stakeholders (including women and youth) have been engaged (including the public and private sector and representatives from local communities), study results have been presented, and citizen inputs have been considered for the project design. Also, the indicative long list of investments has been informed by citizens’ views and a tourism rapid assessment.

During implementation, the project will continue to pro-actively involve citizens and beneficiaries (including women and youth groups) across project activities and ensure their genuine engagement in the finalization of detailed designs. Under the project’s first component, the development of regional strategies and action plans will remain participatory and would be finalized only based on in-depth stakeholder engagement. The project’s second component investments in sub-projects would be demand driven and involve extensive awareness raising and open call for interested participants.

For Citizen Engagement purposes, the project will utilize the following mechanisms: (i) participatory urban design through place-making, which is a collaborative, community-driven approach including citizens and the local community into urban design activities, (ii) participatory monitoring of ongoing construction works, which will include community representatives to evaluate the implementation of the investments, (iii) periodic “Open Door Days”, organized like consultative workshops inviting local citizens and SMEs interested in implementing grant activities and providing guidance and information on the grant program (tailored to applicant needs). These events will aim to also involve vulnerable local citizens and ensure that dialogues are established to assess needs and gaps and further improve grant programs, and (iii) a dedicated and already institutionalized Grievance Redress and Beneficiary Feedback Mechanism for the matching/small grant program, which will be actively promoted in the project. This mechanism will ensure that various avenues of contact and information are utilized (including telephone and widely used web apps such as Facebook, WhatsApp, and Viber). Information with contact phone numbers, the ARIS web site, and a QR code will be displayed at the respective city halls and at all construction sites. For the small grants program, information for interested applicants will be offered through the announcements (posters) in public places and at easy to access information boards.

Finally, all citizen engagement activities will include meaningful discussions of climate change and sustainability issues relevant to the respective communities and explanations on how the proposed activities and investments will address the issues of climate change adaptation (and mitigation, where possible).

To establish systemized CE, PIU established close contact with representatives of communities and local NGOs.

On the website of the Implementing Agency - ARIS there is a page where any citizen of the Republic will be able to leave his feedback, suggestions, questions on projects implemented by the Agency. For its part, ARIS publishes not only general information about each project, but also planned activities, that allows citizens to receive timely information about projects, leave a message on any issue. In addition, the "hot line" telephone numbers calling by which any citizen can speak is published on the website.

7. POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS

7.1 Adverse Environmental Risks and Impacts

7.1.1 Overview of potential environmental risks and impacts

Conducted ESA concluded that the project will generate mostly positive socio-economic benefits due to the improvement of tourism and agriculture related activities environmental conditions on the participating cities and in the region. Rehabilitation of urban and tourism infrastructures will significantly improve living conditions, water supply and sanitation, solid waste management, would reduce the level of pollutants emissions which will overall have significant effects on the health of population and environment of cities in general. Similarly, agriculture related activities would generate a series of positive social and economic impacts such as increased production, products and goods which would result in creation of new jobs and respectively, more employment and increased income; improving of business environment, introduction of advanced agricultural technologies and techniques, contribution to poverty reduction and food safety. The proposed activities and financing agricultural subprojects will also strengthen the sustainability of agriculture in the region, which overall combine implementation of new technologies, policies, and activities aimed and also integrating socioeconomic principles with environmental concerns so as to maintain or enhance agricultural production, reduce the risk of diminishing productivity, protect natural resources, develop the capacity to map pests and diseases and improve quality and food safety standards, all with a view to be economically viable, socially acceptable and technically feasible.

The proposed project activities might also generate a series of various adverse environmental and social impacts. These impacts would be associated with generation of wastes, noise, dust, and air pollution, health hazards and labor safety issues, etc., due to civil works under the urban and tourism infrastructure development as well as related to agriculture production or processing activities. All of them are expected to be typical for small scale construction/rehabilitation works, temporary by nature and site specific, and can be easily mitigated by applying best construction practices and relevant mitigation measures.

An initial proposed list of investments and TA activities (Annex 2) and the summary of their potential environmental risks and impacts along with the generic mitigation measures are presented in Table 11 below. Additionally, for different types of agricultural and agro-processing subprojects that might be supported under the access to finance subcomponent potential risks and impacts along with the typical mitigation measures are presented in the Annexes 11, 12. The proposed measures could be used for development of ESMPs for selected sub-projects.

Table 11: Potential project environmental risks and impacts

EXPECTED ADVERSE PROPOSED TYPES OF Nо ENVIRONMENTAL RISKS MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS AND IMPACTS

I. Urban and tourism related activities A. Investments activities 1 Street lighting upgrading; • Waste generation including ✓ Segregate wastes on recycled and non-recycled; ▪ Repairing of existing pillars; construction (package materials,✓ Recycled wastes utilize (sell) to relevant organizations; ▪ Replace old pillars with new ones; used and hazardous (containing ✓ Non-recycled utilize to municipal landfills; ▪ Installing new pillars where needed; mercury) wastes; ✓ Some of replacing pillars could be re-used for other parts of city or neighboring settlements; ▪ Replacements of bulbs; ✓ Dispose replaced bulbs contained mercury in accordance with national regulation17; ✓ Timely dispose all wastes from construction sites (within 1 day).

✓ Apply watering of construction sites and roads inside settlements during dry season; ✓ Cover transported bulk materials; • Dust pollution; ✓ Control speed limitation for vehicles during movement inside of settlements - no more than 40 km/h.

✓ Operation of noisy equipment shall be conducted between 7 am and 7 pm only; ✓ Limitation on speed for vehicles;

✓ Contractor has to comply with requirements of the Law of the Kyrgyz Republic on Occupational Safety, • Noise pollution and vibration; 2003, the Labor Code of the Kyrgyz Republic, 2004, and individual regulatory norms and standards on work and health safety18, IFC EHS Guidelines (2007) ✓ Construction sites will be properly lightened and fenced; clear signs will be placed with indication of conducting works; • Health and safety of workers ✓ Contractor and PIU will inform population about anticipated works in the settlement in advance; and community (risk of electric shock, falling objectives from ✓ Avoid cutting trees as much as possible. If cutting trees is unavoidable, to compensate losses in height and etc.) accordance with KR Law on protection and use of flora19 Risk of losses trees and vegetation during installing of new pillars 2 Parks, playgrounds, and other• Dust generation ✓ The same as for subproject # 1 (dust generation)

17 Hazardous waste management procedure in the territory Kyrgyz Republic. No. 885 of 28.12.2015 18 Construction Norms and Rules KR 12-02:2017. Organization of Construction works. 19 Kyrgyz Republic Law on Protection and use of flora from 2001

EXPECTED ADVERSE PROPOSED TYPES OF Nо ENVIRONMENTAL RISKS MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS AND IMPACTS public spaces improvements • Noise pollution ✓ The same as for subproject # 1 (noise pollution)

• Waste generation ✓ Segregate wastes on recycled and non-recycled; ✓ Recycled wastes utilize (sell) to relevant organizations; ✓ Non-recycled utilize to municipal landfills; ✓ Timely dispose all wastes from construction sites (within 1 day) 3 Intra city transport: • Generation of construction✓ The same as for subproject # 2 (waste generation) ▪ Construction/rehabilitation of bus wastes terminals and stops; ✓ The same as for subproject # 1 (dust generation) ▪ Construction of car parking areas; • Dust pollution; ▪ Installing streetlights and road signs ✓ The same as for subproject # 1 (noise pollution and vibration) • Noise pollution and vibration; ✓ The same as for subproject # 1 (H&S of workers and community) • Health and safety of workers and community

4 Roads rehabilitation: • Air pollution ✓ All contractors and subcontractors’ vehicles and techniques must comply with technical requirements • Widening of existing roads (within and have to pass regular inspection as indicated into the national standards20; the ROW); ✓ Prohibit open burning of solid wastes generated from construction activities; Road resurfacing ✓ Near dwellings or public places engine idling should not exceed 5 minutes • Construction of bicycle trial; • Rehabilitation of walkways ✓ The same as for subproject # 1 (dust generation)

✓ Segregate wastes on recycled and non-recycled; • Dust pollution; ✓ Recycled wastes utilize (sell) to relevant organizations; ✓ Non-recycled utilize to municipal landfills; • Waste generation including ✓ Storage hazardous wastes in specially equipped places, preventing leakage pollution of soil and construction and hazardous ground water (road paint, bitumen residuals); ✓ Timely dispose all wastes from construction sites (within 1 day)

✓ Operation of noisy and heavy equipment shall be conducted between 7 am and 7 pm only; ✓ Limitation on speed for vehicles;

20 Regulation on the procedure for technical inspection of vehicles #239 from 03.05.2015

EXPECTED ADVERSE PROPOSED TYPES OF Nо ENVIRONMENTAL RISKS MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS AND IMPACTS • Noise pollution and vibration; ✓ For the areas where construction/rehabilitation works will be implemented close to cultural/historical heritages or old buildings usage of heavy techniques on the distance closer than 2 meters will be prohibited. All works which may generated vibration, need to be conducted manually

✓ Prohibit refilling of cars and repairing works next to water courses; ✓ Avoid direct discharge of wastes and waste water into the water courses

✓ The same as for subproject #1 (losses trees and vegetation)

• Water pollution (if construction ✓ The same as for subproject # 1 (H&S of workers and community) works will be conducted next to work courses)

• Cutting trees

• Health and safety of workers and community 5 ▪ Bridge rehabilitation – extension• Air pollution ✓ The same as for subproject # 4 (air pollution) of existing automobile bridge ▪ Construction small scale new• Dust generation ✓ The same as for subproject # 1 (dust generation) bridges, including pedestrian ones • Waste generation ✓ The same as for subproject # 4 (waste generation)

• Noise pollution and vibration; ✓ The same as for subproject # 4 (noise pollution and vibration)

• Water pollution ✓ The same as for subproject # 4 (water pollution)

• Health and safety workers and✓ The same as for subproject # 1 (H&S of workers and community) community ✓ The population needs to be informed in advance about planning works; • Limited access to road (in case✓ Bypass roads need to be agreed with Road Policy and to be presented to public prior starting of extension of existing construction works; automobile bridge) ✓ Proper signs and information need to be placed at the construction sites

6 ▪ Drainage extension • Soil degradation ✓ The top soil of about 30 cm depth shall be removed and stored separately during excavation work, and ▪ Widening of existing drains after completion of the main construction the same soil shall be replaced on the top, in unpaved areas;

EXPECTED ADVERSE PROPOSED TYPES OF Nо ENVIRONMENTAL RISKS MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS AND IMPACTS ▪ Rehabilitation of existing drains ✓ To minimize soil compaction, movement of all type techniques will be allowed only through agreed ▪ Drilling of new shallow assess roads; wells/rehabilitation of existing for ✓ Contractors will be required to use only authorized carriers with getting all necessary permissions per flood control and reduction with respective national legislation; installation of pumps ✓ Storage of hazardous materials, techniques and vehicles refueling, and repair works will be prohibited on construction sites. All these types of works need to be conducted at the special equipped workshops and stations

✓ The same as for subproject # 4 (waste generation)

✓ The same as for subproject #1 (losses trees and vegetation)

✓ The same as for subproject # 4 (noise pollution and vibration)

✓ The same as for subproject # 4 (air pollution and dust generation)

• Waste generation ✓ The following procedure needs to be implemented: • do not disturb any chance find further until an assessment by competent professionals is made and • Losses of trees actions are identified; • Notify relevant authorities of found objects or sites by cultural heritage experts; • Noise and vibration pollutions • to fence-off the area of finds or sites to avoid further disturbance; • to assess found objects or sites by cultural heritage experts; • Air pollution and dust generation• to identify and implement actions consistent with the requirements of the OP 4.11 on Physical Cultural Resources and national law; • Chance finds • when needed, to train project personnel and project workers on chance find procedures.

✓ The same as for subproject # 1 (H&S of workers and community)

• Health and safety workers and community 7 ▪ Extension and rehabilitation of For construction period water supply networks • Air pollution and dust✓ The same as for subproject # 4 (air pollution and dust generation) ▪ Construction/rehabilitation of generation; water reservoirs ✓ The same as for subproject # 6 (soil degradation) ▪ Overhead water tanks • Losses of fertilized soil; ▪ Construction or rehabilitation of pumping stations 57

EXPECTED ADVERSE PROPOSED TYPES OF Nо ENVIRONMENTAL RISKS MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS AND IMPACTS ▪ Rehabilitation of water intakes • Waste generation (including✓ In addition to action recommended for subproject # 4 (waste generation) special attention needed to used asbestos pipes); be paid asbestos pipes – they should not be touched and excavated. New pipes have to be laid next to old pipes;

✓ The same as for subproject #1 (losses trees and vegetation) • Losses of trees and crops; ✓ Provides temporary bridges for shops and houses which were blocked due to project works. ✓ Inform population in advance about planning works • Temporary blockage of access to✓ Set up construction works in the way which will minimize time of blockage shops and houses public facilities such as shops, houses and etc. ✓ The same as for subproject # 4 (noise pollution and vibration)

✓ The same as for subproject # 1 (H&S of workers and community) • Noise and vibration pollution

• Health and safety for workers✓ The same as for subproject #6 (chance finds) and communities

• Chance finds ✓ Beneficiary should receive official confirmation from the State Committee on Geology and Mineral For operation period Resources on existing reservoirs and operational capacity of ground water wells • Soil collapsing due to over extracting water from wellfield; ✓ Discharging chemical’s reagents residual into water stream without treatment will be prohibited. Special procedure of utilization of such reagents, indicated in Standards for Drinking Water, 2011 has to be implemented. • Generation of wastes including hazardous materials; ✓ Conduction of awareness program on proper and timely waste water disposal for population in the project area; • Increasing of sewage due to✓ Ensure proper maintenance of the septic tanks and timely removal sludge from tanks increasing of supplied water

8 ▪ Sewerage network extension and• Air pollution and dust✓ The same as for subproject # 4 (air pollution and dust generation) rehabilitation; generation; ▪ Rehabilitation of sewage ✓ The same as for subproject # 4 (noise pollution and vibration) pumping stations • Noise and vibration pollution ▪ Septic Tanks ✓ The same as for subproject # 7 (waste generation) 58

EXPECTED ADVERSE PROPOSED TYPES OF Nо ENVIRONMENTAL RISKS MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS AND IMPACTS • Waste generation (including used asbestos pipes); ✓ The same as for subproject #1 (losses trees and vegetation) • Losses of trees; ✓ The same as for subproject # 7 (temporary blockage) • Temporary blockage of access to public facilities such as shops, houses and etc. ✓ The same as for subproject # 1 (H&S of workers and community) • Health and safety for workers and communities ✓ The same as for subproject # 6 (Chance finds) • Chance finds 9 Solid waste management systems: ▪ Construction of collection points • Air pollution and dust generation✓ The same as for subproject # 4 (air pollution and dust generation) ▪ Improvement of solid wastes landfill • Noise pollution (during✓ The same as for subproject # 4 (noise pollution and vibration) construction of collection points) ✓ The same as for subproject # 4 (waste generation) • Waste generation 10 Cultural heritage rehabilitation/ • Air pollution and dust generation✓ The same as for subproject # 4 (air pollution and dust generation) reconstruction and conservation • Noise pollution ✓ The same as for subproject # 1 (noise pollution)

• Vibration ✓ Avoid usage techniques which could generate vibration level which exceed norms in 94 dB21 (10 meters from vibration source)

• Wastes generation ✓ The same as for subproject # 4 (waste generation)

• Risk of damage historical✓ Develop Specific Environmental Management Plan in accordance guidelines provided Chapter 5.6 building due to project works ✓ The same as for subproject # 1 (H&S of workers and community) • Health safety of workers and community;

21 Standard threshold for historical building in 94dB is established by Swiss Association of Standardization, (1992) 59

EXPECTED ADVERSE PROPOSED TYPES OF Nо ENVIRONMENTAL RISKS MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS AND IMPACTS 11 ▪ Underground electric cabling (for• Waste generation including✓ The same as for subproject # 4 (waste generation) magistral lines) construction wastes; ▪ Overhead electric cabling ▪ New distribution electrical• Chance finds; ✓ The same as for subproject #6 (chance finds) transformers; ▪ Installing of short segments of• Losses of trees; ✓ The same as for subproject #1 (losses trees and vegetation) new distribution lines or replacing of obsolete pillars; • Noise and vibration ✓ The same as for subproject # 4 (noise pollution and vibration)

• Health safety of workers and✓ The same as for subproject # 1 (H&S of workers and community community; 12 Purchasing of public utilities• Waste generation ✓ The same as for subproject # 4 (waste generation) equipment; transportation means and etc. 13 Reconstruction, modernization of• Air pollution and dust generation✓ The same as for subproject # 4 (air pollution and dust generation) heating systems, (replacement or modernization of the heat source• Noise and vibration pollution ✓ The same as for subproject # 1 (noise pollution) such as: burner, boiler or external sources); • Waste generation ✓ The same as for subproject # 4 (waste generation) ▪ Buildings retrofitting and insulation; • Health safety of workers and✓ The same as for subproject # 1 (H&S of workers and community) ▪ Installation of solar panels; community; ▪ Replacement of old heating pipes under roads to be rehabilitated • Socio-economic impacts✓ The same as for subproject # 7 (temporary blockage) (temporary blockage of access to public facilities such as shops, houses and etc.) 14 Smalls scale construction of• Air pollution and dust✓ Prior to commencement of rehabilitation works at the building where asbestos materials contained in public facilities (information generation; roof and thermo isolation, to develop Asbestos Management Plan for each site. centers; visitor centers;• Noise pollution (during✓ The same as for subproject # 4 (air pollution and dust generation) maintenance facilities; storage construction of collection facilities): points); ✓ The same as for subproject # 1 (noise pollution) ▪ Repair/replacement of external doors and windows, window• Waste generation; ✓ The same as for subproject # 4 (waste generation) optimization; ▪ Small scale refurbishing activities ✓ The same as for subproject # 1 (H&S of workers and community) 60

EXPECTED ADVERSE PROPOSED TYPES OF Nо ENVIRONMENTAL RISKS MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS AND IMPACTS inside the premises (e.g. walls• Health safety of workers and repainting, tiling, installation of community cable ducts, new water-pipes) ▪ Replacement of the asbestos roofs

15 Installing antennas for providing• Waste generation ✓ The same as for subproject # 4 (waste generation) WIFI services • Health safety of workers and✓ The same as for subproject # 1 (H&S of workers and community) community 16 Small Grants for Tourism enterprise• Various small-scale risks and✓ Proposed measures can be identified in the above lines, depending on the proposed activities under start-ups impacts or no such risks, these grants depending on the types of proposed activities which are specified above B. TA activities 17 ▪ Preparing site development• Various indirect environmental✓ The TORs for the concept papers, feasibility studies and subproject designs should specify the concepts, detailed subproject risks and impacts (depending on Environmental and social assessment requirements. designs for the selected priority proposed types of investments investments specified above) during the implementation phase 18 Preparing sites management plans • No impacts ✓ 19 TA for Department of Tourism for• No impacts ✓ improved monitoring and evaluation, marketing and promotion 20 TA for destination management in• No impacts ✓ Osh and Uzgen cities - Tourism marketing, promotion, media coverage and destination management 21 Capacity Building for Public and• No Impacts ✓ Private Sector in tourism services 22 Capacity Building for Kara-Shoro• No Impacts ✓ Park management II. Agriculture related activities A. Investment activities

EXPECTED ADVERSE PROPOSED TYPES OF Nо ENVIRONMENTAL RISKS MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS AND IMPACTS (i) Strengthening agri-food supply chains and SMEs 1 Providing financing through• Various risks and impacts✓ The proposed mitigation measures are specified in Annexes 11, 12. competitive matching grants to depending on subproject agro-enterprises and with an specifics and scale – see emphasis on value chain (with a Annexes 11, 12. focus on include select fruit products (cherries, apricots, plums) and early season vegetables, as well as meat and dairy processing. (ii) Improving basic agricultural services and regulatory functions 3 Upgrading the lab in Osh City• Air pollution and dust✓ Prior to commencement of rehabilitation works at the building where asbestos materials contained in with additional equipment and generation; roof and thermo isolation, to develop Asbestos Management Plan for each site in accordance with civil works for refurbishing of its• Noise pollution (during Appendix 12. facilities: construction of collection ▪ Repair/replacement of external points); ✓ The same as for subproject # 4 (air pollution and dust generation) doors and windows, window optimization; • Waste generation; ✓ The same as for subproject # 1 (noise pollution) ▪ Small scale refurbishing activities inside the premises (e.g. walls• Health safety of workers and✓ The same as for subproject # 4 (waste generation) repainting, tiling, installation of community cable ducts, new water-pipes) ✓ The same as for subproject # 1 (H&S of workers and community) ▪ Replacement of the asbestos roofs 4 Upgrade border post lab• Air pollution and dust✓ The same as for subproject # 4 (air pollution and dust generation) infrastructure and civil works for generation; office refurbishing. • Noise pollution (during✓ The same as for subproject # 1 (noise pollution) ▪ Repair/replacement of external construction of collection doors and windows, window points); ✓ The same as for subproject # 4 (waste generation) optimization; ▪ Small scale refurbishing activities• Waste generation; ✓ The same as for subproject # 1 (H&S of workers and community) inside the premises (e.g. walls repainting, tiling, installation of• Health safety of workers and cable ducts, new water-pipes). community 5 Animal byproducts disposal and• Air pollution and dust✓ The same as for subproject # 4 (air pollution and dust generation) upgrading the animal waste generation; disposal system in Osh city by ✓ The same as for subproject # 1 (noise pollution) purchasing incinerators.

EXPECTED ADVERSE PROPOSED TYPES OF Nо ENVIRONMENTAL RISKS MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS AND IMPACTS • Noise pollution (during✓ The same as for subproject # 4 (waste generation) construction of collection points); ✓ The same as for subproject # 1 (H&S of workers and community)

• Waste generation;

• Health safety of workers and community 6 Upgrading seed and breed• Air pollution and dust✓ The same as for subproject # 4 (air pollution and dust generation) multiplication facilities. generation; ▪ Repair/replacement of external• Noise pollution (during✓ The same as for subproject # 1 (noise pollution) doors and windows, window construction of collection optimization; points); ✓ The same as for subproject # 4 (waste generation) ▪ Small scale refurbishing activities inside the premises (e.g. walls• Waste generation; ✓ The same as for subproject # 1 (H&S of workers and community) repainting, tiling, installation of cable ducts, new water-pipes) • Health safety of workers and community

B. TA activities Promoting agriculture export, business development and entrepreneurship 7 Capacity building for Osh technical• No impacts ✓ agricultural college 8 Training on business planning,• No Impacts ✓ financial literacy and management

7.1.2 Potential environmental risks and impacts associated with conducting civil works

Such risks and impacts typically include the following:

Dust generation will occur during conduction of most types of construction/rehabilitation works that are related to earth works, movement of vehicles, rehabilitation of buildings, etc. Especially, risk of dust pollution will increase during the windy weather. The magnitude of impact will increase when construction/rehabilitation works will be conducted close to living area. Taking in account nature of most of the works this impact is expected to be short term with moderate risk and it could be easily mitigated by implementation of measures recommended in the Table 11. However, more additional measures (more often watering, installation of dust screen) could be required for sub-projects related to construction of new ground water intake and networks, rehabilitation of bridges, etc. Waste generation – under the program two types of wastes will be generated: non-hazardous and hazardous. Non-hazardous wastes will be generated during the most part of construction works and will be represented by demolishing parts of existing roads, buildings, pipes. Storage of such wastes in areas close to settlement and untimely or improper disposal may impact on air quality, dust generation and disturbance of neighboring settlements. Besides these wastes, used welding rods, packing materials, woods will be generated as well. During rehabilitation of water supply and sewage networks old pipes maybe excavated for replacement by new ones. Old metal pipes could be re-used as a scrap. However, old asbestos pipes will have to be not touched and not excavated. Hazardous wastes – it is expected that during project works implementation two types of hazardous materials will need a special attention – (i) asbestos contained in the roofs, and (ii) lead containing paints. Air pollution - During construction stage pollutants emissions will be caused by earth works, construction/demolishing activities and exhaust gases from vehicles. Improper waste management, particularly burning of construction and domestic wastes may lead to air pollution. This impact could be minimized through implementation of standard good practice. Risk of losses trees vegetation - impact may occur during pipe laying works, installation of pillars, construction/extension bridges, rehabilitation and construction of water supply and sewage networks. As a rule, construction works on pipe laying will be conducted along existing roads. Therefore, the impact is expected to be minimal since contractors will be requested to avoid felling trees as much as possible. However, if felling trees is unavoidable, compensations need to be paid to owner of trees or SAEPF in accordance with Kyrgyz Republic Law “on Protection and use of flora” from 2001. Some crops could be affected if construction of water supply pipe will go through agricultural lands. Agricultural losses could be minimized if construction works will be conducted in post harvesting period. However, if it is not possible, compensation for lost crops will be paid in accordance with RAP. Water pollution – for project sites, when project activities will be conducted next to the water courses the surface water could be polluted due to improper placement of excavated soil, improper storage of construction materials, leakage of fuel and lubricates from construction machinery, washing of vehicles and techniques without proper treatment. Chance finds – some of the project cities can be located in places where presence a chance of finding archeological heritage. It may happen during earth works, especially during soil excavation for tranches under water supply and sewage network construction/rehabilitation sub-projects. Socio-economic impacts – sub-project works may lead to losses of standing crops, temporary blockage of access to small shops, houses also may lead to losing population income. In additional, improper housekeeping practice, untimely construction and domestic wastes disposal will negatively impact on socio-economic environment. Implementation of the best practice and close work with local population will mitigate these impacts.

7.1.3. Health and safety risks for workers and community during civil works

For community - Inadequate lighting and fencing of construction sites inside of settlement areas can be dangerous for pedestrians and vehicles especially during the night time. Increasing of traffic due to trucks and vehicles movements to construction sites, temporary closing of roads during pipe lying inside of settlements may cause inconvenience for local population as well. In addition, pipe lying will cause temporary blockage of household access.

Untimely and inefficient disposal of solid waste and improper sanitary conditions generated by the construction workers at construction sites may cause pollution of the surrounding environment and affect the health of local people. Moreover, a movement of heavy tracks may destroy or deteriorate conditions of roads inside settlements.

For workers - Safety and health non-compliance may create a risk for construction workers. The Contractors will have to follow Occupation Safety and Health rules, which include among others strictly implementation established norms and procedure H&S which depends on type on conducting works, usage of PPE, training activities and monitoring. In addition, all workers need to be introduced to working procedure with hazardous materials (such as asbestos materials, PCBs etc.). Contractors have to provide workers with appropriate living conditions: safe water supply, washing conditions, rooms for rest and etc.

7.1.4. Potential impacts of agriculture related activities and subprojects

Potential Benefits and Impacts – of strengthening agri-food supply chains and SMEs subcomponent: The objective of this subcomponent is to bridge the knowledge and experience gap related to new production, storage, post-harvest handling (PHH), and marketing knowledge and experience in Osh region of the Kyrgyz Republic. The component would provide a package of technical assistance and services aimed at expanding production/processing volumes with a focus on raising productivity among small producers and linking them to aggregators or processing enterprises. The project would adopt a demand-driven approach during implementation in order to respond to market demand and engage interested agri-businesses. This would require an initial awareness raising and mobilization step to identify specific supply chain actors for participation and the competitive selection of sub-projects. Taking into consideration abovementioned the proposed project activities would provide many environmental and social benefits such as improved farmer skills in land conservation and IPM practices.

Potential Benefits and Impacts –Strengthening agri-food supply chains and SMEs: The objective of this component is to financial assistance s for agribusinesses operating in the Kyrgyz Republic’s agricultural sector, towards enhanced competitiveness of the sector, improved quality and food safety standards, and establishment of market linkages. While generally the project will provide many environmental and social benefits, it may also cause some negative impacts. Expansion of areas under horticulture and intensified other agricultural practices, agro – processing could result in increased water use and use of inputs, including pesticides and chemical fertilizers. The project may also support import of alien varieties of fruits, nuts and vegetables, which could result in loss of native species biodiversity and introduction of new pests and diseases, which could be aggravated by climate change effects already being seen in the Kyrgyz Republic. Overall, the sub-projects anticipated for financing under this subcomponent if not adequately implemented, may cause some environmental impacts related to: (a) increased pollution of ground and surface waters due to soil erosion, use of fertilizers and pesticide, as well as the processing of agricultural products; (b) threats to human health and wildlife due to poor handling of fertilizers and pesticides; (c) increased siltation of water bodies due to soil erosion; (c) solid wastes during processing of agricultural products.

Potential Benefits and Impacts: Pesticides usage: Increasing pesticide applications can lead to pesticide residue (including heavy metals) build up in the soil. Pesticides and fertilizers can migrate to both surface waters and groundwater resulting in contamination of these two sources and leading to damaged aquatic ecosystems and threatened health to downstream users. Indirectly it is possible the development of pests resistant to pesticides and/or destruction of natural enemies of crop pests, both of which can lead to even greater use of pesticides. In assisting borrowers to manage pests that affect agriculture, the Bank supports a strategy that promotes the use of biological or environmental control methods and reduces reliance on 65

synthetic chemical pesticides. In Bank-financed projects, the borrower addresses pest management issues in the context of the project's environmental assessment.

Use of pesticides is a common practice in the Kyrgyz Republic, and hence it may occur under the RED components that provide matching grants to small and medium size agribusinesses, whether it is financed by the project or not. However, the application of pesticides in the project areas is not expected to be significant, given the small size of the individual farmer land holdings.

Potential Cumulative Impacts (Component 2): Assuming if all mitigation is carried out on all sub-projects for which financing is provided, there will still be residual effects, that when considered in total, could have an overall significant effect on the environment. The major environmental concerns, as described in sections above, are water pollution and soil erosion, and the consequences and secondary effects that erosion will cause.

Considering the small size of most sub-projects, it would be easy to dismiss the negative effects that each sub-project might have on the environment. For instance, it is anticipated that small farmers will request modest matching grants for the purchase of basic farm inputs of seed, fertilizers, fuel. Such a grant to a single farmer would present little environmental concern and many such small grants spread throughout the total project area would have a relatively negligible effect. However, if by chance many requests for grants originated from the same area, and more importantly from the same watershed, the cumulative effect of all of the small (negligible) effects could be significant.

Cumulative effect is important in spatial terms, as indicated above, and over time. For instance, a grant for seed purchase has no negative impact, and in fact, has much the opposite with an increased production and return to the farmer. However, the same grant provided for more than two years in a row could promote poor crop and land management and disrupt a relatively current good agricultural management system characterized by long rotations. By avoiding a crop rotation program, the farmer can deplete the fertility and organic content of his soil and further promote soil erosion. Over time there would be a cumulative effect.

Farmers should not be denied grants based on their location, but if patterns appear to show concentrations of them (e.g. fertilizers) in one watershed, the ARIS environmental specialist should alert local environmental authorities and the local safeguards specialists in Osh city for special monitoring of the situation. If the cumulative effects have the potential to become severe, providing financing for the activity should be suspended.

Another example applied to small and medium enterprises is the application of grants for rehabilitation or for the start-up of new businesses. With agro-processing and other agrobusinesses, the environmental concerns usually focus on air emissions and effluent discharge. In the case of air emissions, there are usually standards in place that guide the concentration of various emissions at the stack. Although each industrial activity may have emission controls within well-established national standards, cumulatively, all enterprises in one region (e.g. in a small closed valley with poor air circulation) could significantly contribute to the deterioration of overall air quality, resulting in an impact on human health. Similarly, for water quality, several enterprises releasing effluents into a water body could cumulatively affect the quality of the water in a significant manner even though each enterprise may be releasing very small amounts of effluent that meet set standards.

The other aspect of cumulative effects of the overall project is the accumulation of many small impacts over the full range of project-funded activities. That is, the cumulative impact of all small impacts as a result of several grants for agricultural machinery purchase, added to the cumulative impact of all of the small impacts from the non-farm enterprises. The overall cumulative impact could be significant. Since many of these activities can influence water quality, the overall effect on water quality could be significant.

In order to prevent the risk of adverse cumulative environmental effects, a brief environmental analysis will be made of the portfolio every year by the ARIS environmental specialist and reported to the relevant authorities in the SAEPF and the World Bank.

7.1.5. Potential Impacts associated with livestock activities

Overall livestock related activities might generate a series of potential impacts as follows:

• Environmental impacts of potential expansion of livestock, including the management of cattle manure and increased pressure on grazing lands; • Potential risks of degradation or changing species composition in the pastures due to overgrazing as well as soil losses because of erosion, and a reduction in soil productivity caused by alteration of the vegetation status and composition. • Environmental pollution during animals feeding. Livestock feed includes hay, grain (sometimes supplemented with protein, amino acids, enzymes, vitamins, mineral supplements, hormones, heavy metals, and antibiotics), and silage. Feed can become unusable waste material if spilled during storage, loading, and unloading or during animal feeding. Waste feed, including additives, may contribute to the contamination of storm-water runoff, primarily because of its organic matter content22.

Manure management. Mammalian livestock production generate significant quantities of animal waste, mainly in the form of un-metabolized nutrients excreted as manure. Manure contains nitrogen, phosphorus, and other excreted substances which may result in air emissions of ammonia and other gases and may pose a potential risk of contamination to surface or groundwater resources through leaching and runoff. Manure also contains disease-causing agents such as bacteria, pathogens, viruses, parasites, and prions, which may also potentially affect soil, water, and plant resources (for human, livestock, or wildlife consumption). Most of the animal waste is generated at housing, feeding, and watering locations. Following are the summary of positive and negative potential impacts for manure application here:

Positive environmental impacts • Soil fertilization by manure application: decomposition of the organic material by microorganisms produces carbon dioxide (CO2), water and minerals of plant nutrients as N, P, S and metals. The mineralization is the transformation of organically bound elements into plant available nutrients. Application of manure to crop land or pastures will reduce the requirements of artificial fertilizer. • Soil fertility improvement: organic matter that remains one year after application is assumed to be part of the soil organic matter and will decompose gradually over the years, releasing plant nutrients. • Improvement of the soil structure stability. Organic matter is also involved in the physical properties of soil e.g. porosity, aeration water holding capacity, it improved soil structure and reduces the soil vulnerability to erosion. • Improvement of inorganic fertilizer potentiality: organic matter in soil increases the capacity of absorption of minerals, reducing the loss of the elements brought in the fertilizers. Absorbed elements are gradually released for plant nutrition.

Negative environmental impacts • Runoff of manure and manure components into surface water, contributing to water pollution. • Leaching of nitrate and phosphorus into the ground water, contributing to underground water pollution. • Ammonia emissions: before and during storage, and during application in the field. • Emission of NOx: this is formed as a by-product of the denitrification process. • Emission of methane formed upon decomposition of manure under anaerobic conditions. • Air pollution. Dairy cows and their manure produce greenhouse gas emissions which contribute to climate change. • Large amount of animal wastes may be produced by livestock and poultry breeding, mainly the indigested nutrients contained in the animal excretion. The excreted matters such as nitrogen and

22WB Environmental, Health, and Safety Guidelines for Mammalian Livestock Production (http://www.ifc.org/wps/wcm/connect/e2cfd90048855333ae04fe6a6515bb18/Final%2B- %2BMammalian%2BLivestock%2BProduction.pdf?MOD=AJPERES

phosphorus contained in the livestock and poultry excrement will give off ammonia and other gases in the air, may pollute surface water and ground water resources by means of filtration and runoff. In addition, animal excrement contains many pathogenic elements, such as bacteria, pathogens, virus, parasite and viroid, which may cause adverse impact on the soil, water and plant resources (those plants may be the food source for human, livestock and poultry and wild animals). Most of animal wastes are possibly found inside the house, livestock and poultry farm and watering place. Animal wastes can be classified into the liquid, mud and solid (depending on the content of solid) by its form. The animal waste management system can be utilized to reduce above adverse impacts by following functions: collect, transport, store, treat and utilize (but discard) the wastes.

Overall it is expected the project will not contribute to expansion of the livestock – it would make its contribution to reduction of number of heads directed on improving of heard quality and the project focus is replacing of more numerous herds with less but more productive animals.

Impacts of chemicals. These impacts can be expected from use of insecticide/acaricide livestock dips applied directly to livestock or to structures (e.g. barns and housing units) and to control pests (e.g. parasites and vectors) using dipping vats, sprayers, and foggers. Pesticides can also be used to control predators. The potential pollutants from pesticides include the active and inert ingredients, diluents, and persistent degradation products. Pesticides and their degradation products may enter groundwater and surface water in solution, in emulsion, or bound to soil particles. Pesticides may, in some instances, impair the uses of surface waters and groundwater. Some pesticides are suspected or known to cause chronic or acute health hazards for humans as well as adverse ecological impacts.

Acaricides are the major chemicals used to control ticks and other ectoparasites. As the ticks take animal blood meal, they also transmit disease causing organisms to not only the livestock but also man they present a strong constraint to livestock production in the project area. To reduce their impacts the farmers routinely use the conventional control methods which include the use of chemical Acaricides and give some partial results albeit shortcomings like the presence of chemical residues in milk, meat and the development of tick resistant strains. A wide range of Acaricides exist for use against ticks of domestic animals and livestock among one of the many methods used to control ticks. Documented in the project area Acaricides include arsenics, chlorinated hydrocarbons, organophosphates, carbamates and synthetic pyrethroids which are sold under the following names: Ivermektin, Inter-Ivermetin, Ivertet, Flyblock, Ecomektin, Cypek, Santomektin, Diazinon “Lucy”, Solfisan, Ivermek Gold, Vilmektin, Rolenol, Ivermekvet. They are applied through, dipping, spraying, spot treatment or hand dressing.

Usually farmers do not wear any protective clothing during the administration of acaricides. Dermal exposure to these pesticides is usually overlooked or underestimated by farmers in KR although the pesticides are capable of binding to the skin, extracting lipids out of the skin or rendering it permeable to other similar toxic chemicals. Pesticides residues in meat and milk are likely to be higher in livestock products produced by smallholder rural farmers. Inappropriate trading, labelling and use of acaricides and anti-helminths in the project area raises concerns about food safety and public health. Because of their large use, these chemicals pose health risks to non-target species, including people, domestic and companion animals, wildlife, and aquatic species.

Impacts of the animal diseases. Animal diseases can enter a facility with new animals, on equipment, and on or people. Some diseases can weaken or kill large numbers of animals at an infected facility. From this point of view, the project impacts will be positive as the project will support a series of activities for diseases control, through better veterinary services, vaccinations, veterinary points. The main areas of environmental risk from the project activities are: (i) the inadvertent spread of the viruses during culling, transport and disposal of carcasses, animal waste, litter, and used protective gear; (ii) contamination of surface and groundwater from use of disinfectants; (iii) laboratory bio-safety and waste management.

In addition, minor environmental disturbances may occur during renovation of laboratories and vaccine storage facilities.

7.1.6. Dairy and meat agro-processing impacts

Sub-projects related to dairy and meat processing which might be implemented under the project activities will generate a great number of both direct and indirect positive impacts.

Direct positive impacts will be generated by increased livestock products processing activities which would result in creation of new jobs and respectively, more employment and increased income. Indirect positive impacts will relate to overall improving of agricultural production and business environment, introduction of advanced agricultural and livestock technologies and techniques & quality standards at enterprises. In addition, use of advanced machinery & equipment, providing additional value to produced agricultural production enhancement competitiveness of domestic production and products, will contribute to poverty reduction and food safety, improvement of country’s socio-economic conditions in urban and rural areas and others

Despite their important contribution to overall and agricultural development, livestock processing industries can also give rise to undesirable environmental side-effects. Left unchecked, like any other industry, livestock industry can create environmental pollution or hazards in various ways: the discharge of organic or hazardous wastes into water supplies; the emission of dust or gases that affect air quality and produce toxic substances; and the use of dangerous machinery that can put the safety and health of workers at risk.

In dairy and meat processing sector - production/processing production of cheese, yogurts; butter; other dairy products as well as of meat and its sub-products the main impacts are related to surface water pollution through increased concentrations of pollutants in wastewater effluents and their treatment, waste management, emissions to air, mostly dust and odor, acoustic, vibration, water and energy consumption, labor hazards.

Air emissions from mammalian livestock production include ammonia (e.g. management of animal waste), methane and nitrous oxide (e.g. animal feeding and waste management), odors (e.g. animal housing and waste management), bioaerosols, and dust (e.g. feed storage, loading, and unloading, feeding, and waste management activities).

Special risk materials (SRM) are tissues in cattle that contain the agent that may transmit bovine spongiform encephalopathy (BSE), transmissible spongiform encephalopathy (TSE), or scrapie disease if reprocessed into animal feed. The human disease, Creutzfeldt-Jakob Disease (CJD), may result from human consumption of products from animals infected with BSE. Although not typically used for food, processing activities may accidentally result in the mixing of SRM tissue with meat products produced for human consumption. Therefore, SRM should be carefully separated from carcasses before their processing into commercially valuable by-products, whether for human or animal consumption.

The overall potential adverse impact can be from high to moderate, primarily due to human health threat. Following are the main potential adverse impacts of dairy and livestock agro-processing: • Contribution to surface water pollution/wastewater from silk solids (e.g. protein, fat, carbohydrates, and lactose), salting activities during cheese. It can lead to significant organic content, high salinity levels; creation of other pollutants as acids, alkali, and detergents, etc. as well as pathogenic microorganisms and viruses; • Soil, groundwater and surface waters can be polluted, and solid waste amount can be increased due to production processes, nonconforming products and product losses, grid and filter residues, sludge from centrifugal separators and wastewater treatment, and packaging waste; • Air pollution and air emissions as well as dust level can be caused by dairy and livestock processing activities and lead to fine milk powder residues in the exhaust air from the spray drying systems and bagging of product; • Dairy and livestock processing facilities are related to on-site wastewater treatment facilities, in addition to fugitive odor emissions from filling/emptying milk tankers and storage silos what can increase the odor level in area.

• Dairy and livestock processing facilities consume considerable amounts of energy and can strengthen stress on natural resources.

The risks of pollution are relatively smaller at the initial stages of preservation and transformation, but they may increase with the level of physical and chemical alteration, particularly in the industries using dated equipment and technology (new technologies are less polluting than old ones in terms of wastes and emissions per unit of output). The size of the industry may be an important factor, but not determinant. The smaller-scale industries can also generate scattered pollutants with a cumulative effect in a given geographic region. In general terms, waste products may occur as waste water, solid material, volatile compounds or gases that are emitted into the air.

Wastewater. An important environmental impact of the animal processing industry results from the discharge of wastewater. The dairy and livestock processing require the use of water and respectively produces a lot of wastewater. The strength and composition of pollutants in the wastewater evidently depend on the nature of the processes involved. Discharge of wastewater to surface waters affects the water quality in three ways: • The discharge of biodegradable organic compounds (BOC’s) may cause a strong reduction of the amount of dissolved oxygen, which in turn may lead to reduced levels of activity or even death of aquatic life. • Macro-nutrients (N, P) may cause eutrophication of the receiving water bodies. Excessive algae growth and subsequent dying off and mineralization of these algae, may lead to the death of aquatic life because of oxygen depletion. • Livestock industrial effluents may contain compounds that are directly toxic to aquatic life.

Suspended Solids (SS). Suspended solids are insoluble organic and inorganic particles present in wastewater. SS is mainly material that is too small to be collected as solid waste. It does not settle in a clarifier either. Discharge of SS increases the turbidity of water and causes a long-term demand for oxygen because of the slow hydrolysis rate of the organic fraction of the material. This organic material may consist of fat, proteins and carbohydrates. The natural biodegradation of proteins (from for instance milk), will eventually lead to the discharge of ammonium. Ammonium oxidation into nitrite and nitrate by nitrifying bacteria, leads to an extra consumption of oxygen. Eutrophication. Nitrogen (N). In wastewater Nitrogen is usually present as fixed in organic material or as ammonium. Occasionally also nitrate may be present (this may be the case in dairy industries where HNO3 is used for cleaning operations). Nitrogen and phosphorus (P) removal can be achieved through special wastewater purification systems, which are based on either biological or physic-chemical processes. Solid waste. Livestock by-products that are not used in any way will be referred to as solid waste. They must be dumped. The following types of solid waste may be distinguished: (a) toxic compounds. These compounds require special attention, e.g. special dumping grounds; (b) organic compounds. These compounds may require attention under certain conditions because of hygienic reasons or because during decomposition ill odor or leaching problems may arise; (c) non degradable compounds. These may be dumped at regular dumping grounds.

Air pollution. An important factor with respect to environmental impact is whether the produced milk and meat products are processed at home or in a factory. Home processed livestock products hardly offer any environmental problems as little waste is produced (mainly air pollution from heating and some pollution of cleaning water with milk and meat residuals) and as the concentration of the waste is generally low.

Impacts of investments in improving the animal heard. The proposed project activities on investments in improving the animal heard might generate a series of various environmental and social impacts, positive and negative. Positive impacts attribute mainly to socio-economic environment. Negative impacts attribute to water, air and soil pollution, odor, health risks, loss of biodiversity and habitats, etc. Potential social impacts. The sub-projects to be implemented under the on mentioned investments will generate a great number of both direct and indirect positive impacts. Direct positive impacts will be generated by increased livestock production due to animal heard improvement, which would result in creation of new jobs and respectively, and increased income. Indirect positive impacts will relate to overall improving of business environment, contribution to poverty reduction and food safety.

Potential adverse environmental impacts can include the following: • Solid waste generated during mammalian livestock production (waste feed, animal waste, and carcasses, as well as various kinds of packaging (e.g. for feed and pesticides), used ventilation filters, unused / spoilt medications, used cleaning materials, and sludge from wastewater treatment if present (which may contain residual amounts of growth enhancers and antibiotics, among other hazardous constituents); • Odor and air emissions; • Waste waters; • Hazardous materials used throughout the livestock production cycles (e.g. disinfecting agents, antibiotic and hormonal products); • Animal diseases.

Positive impacts. It is expected that Project will have beneficial impacts in these areas as there will be less animals and more productive ones. Also, it means fewer animals required for the same production volume and less pressure on pastures; improved quality of production and respective products for markets, including foreign ones; increased farm incomes; improved rural economic situation, etc.

A Summary of environmental and social risks and impacts for the different types of subprojects that might be supported under the Strengthening agri-food supply chains and SMEs subcomponent is presented in Annexes 11 and 12. They also contain necessary mitigation measures which are aligned with the best international practices. These annexes are based on the WB EHS Guidelines.

7.2. Adverse social risks and impacts

7.2.1 Overview of potential social risks and impacts

Conducted SA concluded that the Project will generate mostly positive socio-economic benefits due to the improvement of urban infrastructure services environmental conditions on the participating cities. Rehabilitation of urban infrastructure will significantly improve living conditions, water supply and sanitation, solid waste management that makes the population living in the project areas comfortable. As a result of rehabilitation and new construction works, the number of households connected to drinking water supply, sewerage system will be increased which will overall have significant effects on living conditions of population in general. At the same time the proposed project activities can generate a series of various adverse social impacts. Here are a few potential social impacts associated with RED:

Land acquisition and resettlement. The construction/rehabilitation activities under some local infrastructure subprojects may result no large-scale land acquisition and resettlement, temporary closure of existing routes/ pathways during the execution stage of sub-projects and may cause access restrictions to homes, land plots or other private or public.

In addition to the ESMF (ESMP), a Resettlement Policy Framework (RPF) is prepared for the project to address social impacts such as land acquisitions, access restrictions due to community level social and economic infrastructure subprojects. When details of the project sites and investments / subprojects are available, the need for further site-specific Resettlement Action Plans (RAP) or abbreviated RAPs (ARAPs) will be assessed, in accordance with the RPF.

Loss of public trees. The construction/rehabilitation activities may also led to cutting of public trees. In this case cutting can’t be prevented and a new tree of the same species is to be planted as a compensation measure at the respective location. Plantings shall be conducted after technical works have been completed. Planting time shall be restricted to spring (March till April) and/or autumn (September till October). Quality of newly to be planted trees shall be 16 to 18 cm of stem circumference in 1,5 m minimum height.

Temporary limitation of access to public spaces, schools, medical organizations due to construction works and temporary termination of water and sewerage services. The construction and /or rehabilitation of public infrastructure and buildings can trigger some inconvenience to the public. The site specific ESMPs prepared under the project will include, as necessary, a mitigation measures to reduce

potential risks through consultations with local authorities will be carried out on each of the construction site before the civil works begin and pre-information of residents will take place before the start of each activity which causes such kind of restrictions.

Labor risks. Labor risks related to forced and child labor and associated with contracted workers at subproject level. Subprojects will be implemented by local contractors and most contracted workers will be hired locally and there is a risk of unaccounted working hours and lack of compensation for overtime. Such type of labor risks is considered low given the small size of subproject investments and the ARIS’s adherence to the national labor code which also prohibits child and forced labor.

Labor risk associated with an influx of temporary workers. As most of local level constructions under the project will be done though contractors, adequate care and measures will be taken to avoid any violation of use of labor, accidents, or disputes with local communities due to use of outside labor force for constructions. The site specific ESMPs prepared under the project will include, as necessary, a mitigation measures to reduce potential adverse impacts and risks and the public consultations will be carried out each of the construction site before the civil works begin.

Gender based violence (GBV) risk. Approximately 95 percent victims of violent crimes in The Kyrgyz Republic are women. Domestic violence is widespread, affecting nearly one third of women and girls aged 15 to 49. Seven percent of women have suffered from violence during pregnancy and three percent of women aged 30 years and above have experienced sexual violence23. GBV risk assessment shall be carried out by ARIS for each subproject with civil construction elements and mitigation options are required to be integrated into ESMP.

Mitigation measures to avoid/reduce Labor and GBV risks. Bidders for civil work contracts will be required to express commitment to develop Contractor’s LMP when selected and prior to the start of civil works. All civil works contracts will include industry standard Codes of Conduct that include measures to prevent Gender-Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have a written contract with their workers materially consistent with objective of ESS2, in particular regarding child and forced labor. According to the leadership, the ARIS heavily relies on the donor-funded projects and has approved budgets per project and cannot exceed the budget ceilings.

Damage to cultural/historical sites. During rehabilitation of cultural/historical sites the impacts such as loss of cultural/historical site (if any) and temporary limitation of access, forced labor, labor influx, child labor. Consult relevant authorities and host communities to identify all sites of cultural significance, avoid of all sites of cultural significance, compensate affected persons and communities for the loss and follow the measures on labor related risks given above.

Exclusion risks facing the project beneficiaries’ sub-groups. The beneficiaries for the project are both urban and rural inhabitants of participating cities of Osh and Uzgen Cities and Osh oblast: may include female headed households, elderly headed households, youth, disabled population as well as poor & low-income population. It may also include individuals without sector specific education and background and population living in geographically isolated parts of Osh oblast.

Meaningful participation of the above-mentioned beneficiaries’ sub-groups may be hindered when people lack access to project information, financial and material resources, including income, land and housing.

Therefore, in order to guarantee full involvement of the beneficiaries, it is important for ARIS to start with an initial full project area level Social Assessment for both agribusiness and tourism components to identify subgroups of project beneficiaries and drivers of exclusion/the challenges they face in accessing project benefits. The result of SA will be used to do a more in-depth assessment on exclusion risks and to further refine the selection criteria, modes of engagement, design of TA activities, etc., to address the risk.

23 https://eeas.europa.eu/sites/eeas/files/kyrgyzstan_final_report_09.01.2018_approved_workshop_final.pdf

Under component 2, the detailed criteria for selection of the value chain and the productive partnership will be defined in the Productive Partnerships Manual. Key criteria for selection include existence of a market or buyer, potential for job creation or engagement of many small-scale farmers, sustainable comparative advantage or competitiveness, inclusion of women and youth. The selection and award process will also include a feasibility study that will inform the development of business plans and detailed proposals. Given that many farmers are women, productive partnerships are expected to generate positive impacts for women and the criteria for selection will prioritize those demonstrating inclusion of youth, women and vulnerable groups.

Small-grants program under component 4 will follow a phased approach, where the accommodation managers/staff, tour operators and tour guides will undergo a robust training program and those who will complete it successfully will be eligible to apply for financing. Other services providers and SMEs will be required to submit a sound business plan for their proposed activities. Technical support in business plan development will be provided by the project. Start-ups financed under the program will be eligible for financing to scale-up their activities after the proven record of successful utilization of funds (presenting books, payment of taxes, generating employment, etc.). To address the issues of low rates of women participation in the labor and in access to finance, the Small Grants Program will give preferences to women. Female applicants for the training program will be given a priority at the selection stage as well. This will give women an opportunity to gain practical knowledge and skills in doing business in the hospitality sector or rural entrepreneurship. When scoring business-plans for financing, women applicants will be given additional points. The same approach will be used for youth to promote young entrepreneurs at the local level. The Small Grants Program will be guided by a Small Grants Handbook, which will be developed by the PIE. Disbursement under this component will be subjected to the approval of the Handbook by the Bank.

ARIS will conduct social assessment during the early phase of project implementation for components 2 and 4 that includes more in-depth assessment on exclusion risks; stakeholder identification/mapping; stakeholder analysis of expectations, concerns, and issues; assessments of positive and negative impacts; and a social management plan to mitigate the negative impacts and enhance positive benefits.

Social assessment will need to be concrete and situation-specific to provide the baseline information for designing the social exclusion mitigation and preparing inclusion strategy. ARIS team should begin by identifying and analyzing issues using broad sectoral and region-specific information. The analysis should determine what the key social and institutional issues are in relation to project objectives; identify the key stakeholder groups in this context and determine how relationships between stakeholder groups will affect or be affected by the project; and identify expected social development outcomes and actions proposed to achieve those outcomes. As part of the social assessment, ARIS will identify groups that are vulnerable and disadvantaged, examine the nature and root causes of their vulnerability. ARIS will refine/formulate special project components or targeting mechanisms to strengthen opportunities for these groups. Social risk and vulnerability analysis would: • Identify and assess the social risks of adverse social impacts, especially on vulnerable and disadvantaged groups. • Identify the risks caused by political instability; conflict; ethnic, religious, or social tensions; and endemic corruption. • Identify and assess the risk of weak country ownership or opposition to the project by powerful stakeholders that may undermine the project’s development objectives. • Identify and assess institutions that may oppose or lack resources to implement the project. • and other as per the project component design. The TORs for these activities under agribusiness and tourism development components have to be based on the provisions in the ESMF and include the ESSs requirements, as relevant.

Capacity building activities will include guidance on identifying such impacts and preparing ESIAs and ESMPs. Additionally, the selection, design, contracting and monitoring and evaluation of subprojects will 73

be consistent with the guidelines set out in the annexes. To address identified impacts, the implementing agency and its branches, the subprojects beneficiaries and contractors have to undertake a series of mitigation measures, which should be clearly defined in the site specific ESMP to be prepared.

Other potential risks, impacts and mitigation measures (except the risks related to civil works and social exclusion)

Low capacity of the parties involved in implementation of the ESMF. ESMF implementation requires specific knowledge for all parties involved in its implementation, especially for implementing agency. Respectively, the project will support relevant trainings on knowledge and information on topics such as the ESMF implementation, ESMF/ESMP reporting, World Bank Guidelines. The hired Consultant will provide respective training for ARIS’s and Social Safeguards Specialist on WB ESS standards requirements, ESMF, ESMP and RAP preparation and further assistance in monitoring of the RAP and ESMP.

Risk of Project not meeting expectations among local stakeholders. High expectations from local stakeholders participating in the tourism and agribusiness development components, could be another risk. Such expectations, if not met, could lead to discontent and resentment, which in turn could lead to disruptive actions against the Project or those involved with the Project. This risk will be mitigated through careful management of expectations from the start of Project by ARIS convening the outreach and introductory meetings related to agriculture activities and tourism small grants programs. Individuals that are not awarded loans or grants, may experience a sense of failure which in turn could result in discontent and resentment. Project Team or consultants will make sure to follow up with these individuals to try and find other opportunities. The Project will depend on established NGOs with good local knowledge and insight into the sensitivities at the local level.

Poor management of investments (project management and oversight). Given that most local agri- and tourism business actors have some little experience commercial projects, training will be provided on the principles and practice of commercial project, the project procedures for social accountability, gender related inclusion and equality, and project procedures (mitigating environmental risks, preparing Environmental and Social Impact Assessments (ESIAs) and Environmental and Social Management Plans (ESMPs)). This capacity building will be complemented by training on Agribusiness and Tourism Associations level — local development planning, infrastructure planning, operations, and project management—to deepen skills in participating business structures and enhance capacity to manage inclusive and responsive investments.

The summary of potential social risks and impacts along with the generic mitigation measures are presented in the Table 12 below.

Table 12: Potential project social impacts

PROPOSED TYPES OF EXPECTED ADVERSE Nо MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS SOCIAL IMPACTS

I. Urban and tourism related activities A. Investments activities 1 Civil Street lighting Loss of public trees; Avoid cutting trees as much as possible. If cutting trees is unavoidable, a new tree of the same species upgrading; Temporary land acquisition; is to be planted as a compensation measure at the respective location. Plantings shall be conducted ▪ Repairing of existing pillars; Business income loss (temporary after technical works have been completed. Planting time shall be restricted to spring (March till ▪ Replace old pillars with new and permanent); April) and/or autumn (September till October). Quality of newly to be planted trees shall be 16 to 18 ones; Loss of trees; cm of stem circumference in 1,5 m minimum height. ▪ Installing new pillars where Temporary limitation of access to✓ Contractor shall carry out the replacement /construction works within the safety zones/RoW without needed; public spaces, schools, medical damaging to structures belonging to households. Social screening shall be carried out for possible ▪ Replacements of bulbs organizations due to construction permanent/temporary impacts. In case of IR then RAP/ARAP shall be developed. works and temporary termination✓ The contractor shall inform local citizens in the project area through the web site, newspapers, local of water and sewerage services; TV or other means about possible restriction of access within the construction site in advance. Forced labor, labor influx, child Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works labor and GBV. contracts will include industry standard Codes of Conduct that include measures to prevent Gender- Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have a written contract with their workers, in particular with regard to child and forced labor. Develop and implement a grievance procedure and raise awareness of grievance procedures amongst affected communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each subproject with civil construction elements and mitigation options are required to be integrated into ESMP. 2 Parks, playgrounds, and other Temporary limitation of access to✓ The contractor shall inform local citizens in the project area through the web site, newspapers, local public spaces improvements public spaces, schools, medical TV or other means about possible restriction of access within the construction site in advance. organizations due to construction Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works works and temporary termination contracts will include industry standard Codes of Conduct that include measures to prevent Gender- of water and sewerage services; Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have a written contract with their workers, in particular regarding child and forced labor. Develop and Forced labor, labor influx, child implement a grievance procedure and raise awareness of grievance procedures amongst affected labor and GBV; communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each subproject with civil construction elements and mitigation options are required to be integrated into ESMP. 3 Intra city transport: Permanent/temporary land ✓ Social screening shall be carried out for possible permanent/temporary impacts. If any losses ▪ Construction/rehabilitation of acquisition; identified to PAPs, then ARAP/RAP shall be developed.

PROPOSED TYPES OF EXPECTED ADVERSE Nо MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS SOCIAL IMPACTS

bus terminals and stops; Loss of trees; ✓ The contractor shall inform local citizens in the project area through the web site, newspapers, local ▪ Construction of car parking Business income loss (temporary TV, other means about possible restriction of access within the construction site in advance. areas; and permanent); Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works ▪ Installing street lights and road Temporary limitation of access to contracts will include industry standard Codes of Conduct that include measures to prevent Gender- signs public spaces, schools, medical Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have organizations due to construction a written contract with their workers, in particular regarding child and forced labor. Develop and works and temporary interruption implement a grievance procedure and raise awareness of grievance procedures amongst affected of services; communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate Forced labor, labor influx, child adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each labor and GBV. subproject with civil construction elements and mitigation options are required to be integrated into ESMP. 4 Roads rehabilitation: Damage to existing roads; ✓ Adopt appropriate engineering technology to minimize damage to existing roads. • Widening of existing roads Permanent/temporary land ✓ Social screening shall be carried out for possible permanent/temporary impacts. If any losses (within the ROW); acquisition; identified to PAPs, then ARAP/RAP shall be developed. Road resurfacing Loss of trees; ✓ The contractor shall inform local citizens in the project area through the web site, newspapers, local • Construction of bicycle trail; Business income loss (temporary TV, other means about possible restriction of access within the construction site in advance. • Rehabilitation of walkways and permanent); Use utility survey map to identify existing underground facilities along the corridor before Temporary limitation of access to✓ excavation works to prevent damage and disruption of services, to restore the site to the original public spaces, schools, medical condition. organizations due to construction Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works works and temporary termination contracts will include industry standard Codes of Conduct that include measures to prevent Gender- of water and sewerage services; Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have Damage to existing underground a written contract with their workers, in particular regarding child and forced labor. Develop and facilities such as communication implement a grievance procedure and raise awareness of grievance procedures amongst affected and electrical cables, sewage pipes communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate and other service lines; adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each Forced labor, labor influx, child subproject with civil construction elements and mitigation options are required to be integrated into labor and GBV; ESMP. 5 ▪ Bridge rehabilitation – Permanent/temporary land✓ Social screening shall be carried out for possible permanent/temporary impacts. If any losses extension of existing acquisition; identified to PAPs, then ARAP/RAP shall be developed. automobile bridge Loss of trees; ✓ Use utility survey map to identify existing underground facilities along the corridor before ▪ Construction small scale new Business income loss (temporary✓ excavation works to prevent damage and disruption of services, to restore the site to the original bridges, including pedestrian and permanent); condition. ones Damage to existing underground✓ Bypass roads need to be agreed with Road Policy and to be presented to public prior starting facilities, limited access to road (in construction works. case of extension of the existing✓ automobile bridge); ✓ 76

PROPOSED TYPES OF EXPECTED ADVERSE Nо MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS SOCIAL IMPACTS

Temporary limitation of access; 6 ▪ Drainage extension Permanent/Temporary land✓ Social screening shall be carried out for possible permanent/temporary impacts. If any losses ▪ Widening of existing drains acquisition; identified to PAPs, then ARAP/RAP shall be developed. ▪ Rehabilitation of existing Temporary limitation of access to The contractor shall inform local citizens in the project area through the web site, newspapers, local drains public spaces; TV or other means about possible restriction of access within the construction site in advance. ▪ Drilling of new shallow Damage to existing underground Use utility survey map to identify existing underground facilities along the corridor before excavation wells/rehabilitation of existing facilities such as communication works to prevent damage and disruption of services, to restore the site to the original condition. for flood control and and electrical cables, sewage pipes Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works reduction with installation of and other service lines; contracts will include industry standard Codes of Conduct that include measures to prevent Gender- pumps Forced labor, labor influx, child Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have labor and GBV; a written contract with their workers, in particular with regard to child and forced labor. Develop and implement a grievance procedure and raise awareness of grievance procedures amongst affected communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each subproject with civil construction elements and mitigation options are required to be integrated into ESMP. 7 ▪ Extension and rehabilitation Permanent/temporary land Social screening shall be carried out for possible permanent/temporary impacts. If any losses of water supply networks; acquisition; identified to PAPs, then ARAP/RAP shall be developed. ▪ Drilling of new deep-water Loss of trees; Use utility survey map to identify existing underground facilities along the corridor before excavation wells; Business income loss (temporary works to prevent damage and disruption of services, to restore the site to the original condition. ▪ Construction/rehabilitation of and permanent); Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works water reservoirs; Damage to existing underground contracts will include industry standard Codes of Conduct that include measures to prevent Gender- ▪ Overhead water tanks; facilities such as communication Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have ▪ Construction or rehabilitation and electrical cables, sewage pipes a written contract with their workers, in particular regarding child and forced labor. Develop and of pumping stations; and other service lines; implement a grievance procedure and raise awareness of grievance procedures amongst affected Forced labor, labor influx, child communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate labor and GBV; adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each Limited supply of drinking water; subproject with civil construction elements and mitigation options are required to be integrated into ESMP. Develop and implement water management plan with full participation of all water users. The contractor shall inform local citizens in the project area through the web site, newspapers, local TV, other means about possible restriction of access within the construction site in advance. 8 ▪ Sewerage network extension Damage to existing underground Use utility survey map to identify existing underground facilities along the corridor before excavation and rehabilitation; facilities; works to prevent damage and disruption of services, to restore the site to the original condition. ▪ Rehabilitation of sewage Permanent/Temporary land Social screening shall be carried out for possible permanent/temporary impacts. If any losses pumping stations; acquisition; identified to PAPs, then ARAP/RAP shall be developed. ▪ Septic Tanks; Loss of trees; 77

PROPOSED TYPES OF EXPECTED ADVERSE Nо MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS SOCIAL IMPACTS

Business income loss (temporary Develop and implement sewerage management plan with full participation of all existing users who and permanent); are connected to sewerage system. The contractor shall inform local citizens in the project area Limited connection to sewerage through the web site, newspapers, local TV or other means about possible restriction of access within system; the construction site in advance. Forced labor, labor influx, child Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works labor and GBV; contracts will include industry standard Codes of Conduct that include measures to prevent Gender- Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have a written contract with their workers, in particular regarding child and forced labor. Develop and implement a grievance procedure and raise awareness of grievance procedures amongst affected communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each subproject with civil construction elements and mitigation options are required to be integrated into ESMP. 9 Solid waste management Permanent/ Temporary land Social screening shall be carried out for possible permanent/temporary impacts. If any losses systems: acquisition; identified to PAPs, then ARAP/RAP shall be developed. ▪ Construction of collection Loss of trees; Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works points; Business income loss (temporary contracts will include industry standard Codes of Conduct that include measures to prevent Gender- ▪ Improvement of solid waste and permanent); Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have landfill; Forced labor, labor influx, child a written contract with their workers, in particular regarding child and forced labor. Develop and labor and GBV; implement a grievance procedure and raise awareness of grievance procedures amongst affected communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each subproject with civil construction elements and mitigation options are required to be integrated into ESMP. 10 Cultural heritage Damage of Cultural/Historical✓ Consult relevant authorities and host communities to identify all sites of cultural significance, avoid rehabilitation and Sites; of all sites of cultural significance; Compensate affected persons and communities for the loss. conservation Forced labor, labor influx, child Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works labor and GBV; contracts will include industry standard Codes of Conduct that include measures to prevent Gender- Limited access to Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have cultural/Historical sites; a written contract with their workers, in particular regarding child and forced labor. Develop and implement a grievance procedure and raise awareness of grievance procedures amongst affected communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each subproject with civil construction elements and mitigation options are required to be integrated into ESMP. The contractor shall inform local citizens in the project area through the web site, newspapers, local TV or other means about possible restriction of access within the construction site in advance. 78

PROPOSED TYPES OF EXPECTED ADVERSE Nо MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS SOCIAL IMPACTS

11 ▪ Underground electric cabling Damage to existing underground Use utility survey map to identify existing underground facilities along the corridor before excavation (for magistral lines) facilities; works to prevent damage and disruption of services, to restore the site to the original condition. ▪ Overhead electric cabling Limited supply of electricity; ✓ Develop and implement electricity supply management plan with full participation of all existing ▪ New distribution electrical Permanent/Temporary land users. The contractor shall inform local citizens in the project area through the web site, newspapers, transformers; acquisition; local TV or other means about possible restriction of access within the construction site in advance. ▪ Installing of short segments of Loss of trees; Social screening shall be carried out for possible permanent/temporary impacts. If any losses new distribution lines or Business income loss (temporary identified to PAPs, then ARAP/RAP shall be developed. replacing of obsolete pillars; and permanent); Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works Forced labor, labor influx, child contracts will include industry standard Codes of Conduct that include measures to prevent Gender- labor and GBV; Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have a written contract with their workers, in particular regarding child and forced labor. Develop and implement a grievance procedure and raise awareness of grievance procedures amongst affected communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each subproject with civil construction elements and mitigation options are required to be integrated into ESMP. 12 Purchasing of public utilities No social impact ✓ equipment; transportation means and etc. 13 ▪ Reconstruction, Temporary limitation of access to The contractor shall inform local citizens in the project area through the web site, newspapers, local modernization of heating public spaces; TV, other means about possible restriction of access within the construction site in advance. systems, (replacement or Forced labor, labor influx, child Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works modernization of the heat labor and GBV; contracts will include industry standard Codes of Conduct that include measures to prevent Gender- source such as: burner, boiler Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have or external sources); a written contract with their workers, in particular regarding child and forced labor. Develop and ▪ Buildings retrofitting and implement a grievance procedure and raise awareness of grievance procedures amongst affected insulation; communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate ▪ Installation of solar panels; adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each ▪ Replacement of old heating subproject with civil construction elements and mitigation options are required to be integrated into pipes under roads to be ESMP. rehabilitated 14 Small scale construction of Temporary limitation of access to The contractor shall inform local citizens in the project area through the web site, newspapers, local public facilities (information public spaces TV, other means about possible restriction of access within the construction site in advance. centers; visitor centers; Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works maintenance facilities; storage contracts will include industry standard Codes of Conduct that include measures to prevent Gender- facilities): Forced labor, labor influx, child Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have ▪ Repair/replacement of external labor and GBV a written contract with their workers, in particular regarding child and forced labor. Develop and 79

PROPOSED TYPES OF EXPECTED ADVERSE Nо MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS SOCIAL IMPACTS

doors and windows, window implement a grievance procedure and raise awareness of grievance procedures amongst affected optimization; communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate ▪ Small scale refurbishing adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each activities inside the premises subproject with civil construction elements and mitigation options are required to be integrated into (e.g. walls repainting, tiling, ESMP. installation of cable ducts, new water-pipes) ▪ Replacement of the asbestos roofs 15 Installing antennas for No social impact ✓ providing WIFI services 16 Small Grants for Tourism Various small-scale impacts✓ Proposed measures can be identified in the above lines, depending on the proposed activities under enterprise start-ups depending on the types of proposed these grants. activities which are specified above. B. TA activities 17 ▪ Preparing site development Various indirect Social risks and✓ The TORs for the concept papers, feasibility studies and subproject designs should specify the concepts, detailed subproject impacts (depending on proposed Environmental and social assessment requirements. designs for the selected priority types of investments specified investments above) during the implementation phase. 18 Preparing sites management No impacts ✓ plans 19 TA for Department of Tourism No impacts ✓ for improved monitoring and evaluation, marketing and promotion 20 TA for destination management No impacts ✓ in Osh and Uzgen cities - Tourism marketing, promotion, media coverage and destination management 21 Capacity Building for Public No Impacts ✓ and Private Sector in tourism services 22 Capacity Building for Kara- No Impacts ✓

PROPOSED TYPES OF EXPECTED ADVERSE Nо MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS SOCIAL IMPACTS

Shoro Park management II. Agriculture related activities A. Investment activities (i) Strengthening agri-food supply chains and SMEs 1 Providing financing through Various small-scale impacts,✓ Proposed measures can be identified in the above lines, depending on the proposed activities under matching grants to agro- depending on the types of these grants. enterprises and with an proposed activities which are✓ emphasis on value chain (with a specified above. focus on include select fruit products (cherries, apricots, plums) and early season vegetables, as well as meat and dairy processing. (ii) Improving basic agricultural services and regulatory functions 3 Upgrading the lab in Osh City Forced labor, labor influx, child Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works with additional equipment labor and GBV contracts will include industry standard Codes of Conduct that include measures to prevent Gender- and civil works for Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have refurbishing of its facilities: a written contract with their workers, in particular regarding child and forced labor. Develop and ▪ Repair/replacement of external• implement a grievance procedure and raise awareness of grievance procedures amongst affected doors and windows, window communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate optimization; adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each ▪ Small scale refurbishing subproject with civil construction elements and mitigation options are required to be integrated into activities inside the premises ESMP. (e.g. walls repainting, tiling, ✓ installation of cable ducts, new water-pipes) ▪ Replacement of the asbestos roofs 4 Upgrade border post lab Forced labor, labor influx, child Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works infrastructure and civil works labor and GBV contracts will include industry standard Codes of Conduct that include measures to prevent Gender- for office refurbishing. • Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have ▪ Repair/replacement of external a written contract with their workers, in particular regarding child and forced labor. Develop and doors and windows, window implement a grievance procedure and raise awareness of grievance procedures amongst affected optimization; communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate ▪ Small scale refurbishing adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each activities inside the premises

PROPOSED TYPES OF EXPECTED ADVERSE Nо MEASURES TO PREVENT/MITIGATE NEGATIVE IMPACTS SUBPROJECTS SOCIAL IMPACTS

(e.g. walls repainting, tiling, subproject with civil construction elements and mitigation options are required to be integrated into installation of cable ducts, new ESMP. water-pipes). ✓ 5 Animal byproducts disposal No Impact ✓ and upgrading the animal waste disposal system in Osh city by purchasing incinerators. 6 Upgrading seed and breed Forced labor, labor influx, child Develop Contractor’s LMP when selected and prior to the start of civil works. All civil works multiplication facilities. labor and GBV contracts will include industry standard Codes of Conduct that include measures to prevent Gender- ▪ Repair/replacement of external Based Violence/Sexual Exploitation and Abuse (GBN/SEA). All contractors will be required to have doors and windows, window a written contract with their workers, in particular regarding child and forced labor. Develop and optimization; implement a grievance procedure and raise awareness of grievance procedures amongst affected ▪ Small scale refurbishing communities. In case of lack of local skilled workers, the ESMP shall be developed to mitigate activities inside the premises adverse social impacts due to labor influx. GBV risk assessment shall be carried out by ARIS for each (e.g. walls repainting, tiling, subproject with civil construction elements and mitigation options are required to be integrated into installation of cable ducts, new ESMP. water-pipes). B. TA activities Promoting agriculture export, business development and entrepreneurship 7 Capacity building for Osh No impacts ✓ technical agricultural college. 8 Training on business planning, No Impacts ✓ financial literacy and management.

8. ENVIRONMENTAL AND SOCIAL ASSESSMENT RULES AND PROCEDURES

8.1. Main stages of environmental and social assessment and the role of involved parties

Each project activity and subproject under access to finance subcomponent will undergo an ESA procedure, as follows:

8.1.1. ESA stages

Environmental assessment in The Kyrgyz Republic is a national procedure of environmental impact assessment when the project initiator determines adverse environmental impacts, ensures public participation, evaluates consequences of such impacts and proposes measures for their mitigation. ESIA is carried out for activities subject to obligatory environmental review according to the Law of the Kyrgyz Republic “General Technical Regulations on Ensuring Ecological Safety in the Kyrgyz Republic”. The list of such activities is attached as Annex 1. ESIA is founded on two subsystems: (i) OVOS (the Russian acronym for “Assessment of Environmental Impacts”), and (ii) Ecological Expertise (State Environmental Review, SER). Based on a “list”, project screening is done to determine whether a project is the subject to environmental assessment or not. For cases that this is required, an OVOS is conducted by an OVOS consultant hired by a Project Proponent. The environmental assessment proceeds produce the ESIA documents which will be subjected for further reviews.

The resulting ESIA/IEE is then presented for public consultations, after which revisions are done according to the public’s feedback. Subsequently, the OVOS report, Statement of Environmental Consequences, and other supporting documentations are submitted for the State Environmental Review (SER). After which the project will be approved, rejected or send for reexamination.

Continuation of the SER depends on the project but cannot be more that 3 months after submission by the Initiator of the project with all ESIA/IEE documents to SER. Public Environmental Review (PER) is organized and conducted by the initiation of the local people, local administrations and Civil societies, registered in the Kyrgyz Republic. The outputs of public environmental review are directed to the agency, which is implementing the state environmental expertise and to the agency, which is responsible for the decisions of implementing of the expertise objects.

Public Consultation supposed to be held for the IEE during Feasibility Stage. The outputs of the public consultation should be incorporated in the Public Environmental Review (PER) which can be done both stage of the OVOS or also initiated in parallel to the SER. The SER duration depends on the complexity of the project but should not exceed 3 months after submission of all the OVOS documents for the SER by the Project Proponent.

8.1.2. ESA process: step-by-step

Implementing Agency/PIU environmental and social staff will carry out a rapid assessment of the likely environmental impact and the potential for involuntary resettlement, that will be based on the requirements of national legislation and WB ESSs, completing the screening form presented in the Annex 5. Subproject activities will be also checked against WB criteria for High Risk Projects. The Screening Checklist on Social Issues should be also filled out for this purpose, see Annex 13.

This will make it possible to identify the type and scale of potential environment and social risks and impacts and determine to which risk category the subproject should be attributed. Generally, the significance of impacts and risks, contribute to resulting ESA categorization will depend on the type and scale of the subproject, its location, sensitivity of environmental issues, and the nature and magnitude of potential risks and impacts.

Type and scale of projects. Subprojects that are considered as “High Risk Subprojects” will not be financed. A “High Risk” rating generally would entail the following impacts (a) significantly impact on human populations, including settlements and local communities (b) alteration of environmentally important areas, including wetlands, native forests, grasslands, and other “critical” natural habitats and ecosystem services;

(c) direct pollutant discharges that are large enough to cause degradation of air, water or soil, endangered species and “critical” habitats; (d) largescale physical disturbances of the site and/or surroundings; (e) extraction, consumption or conversion of substantial amounts of forest and other important natural habitats, including above and below ground and water-based ecosystems; (f) measurable modification of hydrologic cycle; (g) hazardous materials in more than incidental quantities; and (h) involuntary displacement of people and other significant social disturbances.

Location. There are a number of locations which should be considered while deciding to rate the project as “High Risk”: (a) in or near sensitive and valuable ecosystems and “critical” habitats — juniper forests, wetlands, wild lands, vulnerable soils, and particular habitats of endangered rare and endemic species; (b) in or near areas with archaeological and/or historical sites or existing cultural and social institutions; (c) in densely populated areas, where resettlement may be required or potential pollution impact and other disturbances may significantly affect communities; (d) in regions subject to heavy development activities or where there are conflicts regarding the allocation of natural resources; along watercourses, in aquifer recharge areas or in reservoir catchments used for potable water supply; and on lands or waters containing valuable resources (such as fisheries, minerals, medicinal plants, prime agricultural soils). Subprojects located in the proximity of such areas will be classified as High-Risk projects and will not be considered for support by the RED.

Sensitivity. Sensitive issues may include (but are not limited to): conversion of wetlands, potential adverse effects on endangered species and habitats as well as protected areas or sites, involuntary resettlement, impacts on international waterways and other transboundary issues, and toxic waste disposal.

Magnitude. There are several ways in which magnitude can be measured, such as the absolute amount of a resource or ecosystem affected, the amount affected relative to the existing stock of the resource or ecosystem, the intensity of the impact and its timing and duration. In addition, the probability of occurrence for a specific impact and the cumulative impact of the proposed action and other planned or ongoing actions may need to be considered. Considering the scale of the proposed subprojects, it is expected that the magnitude of their environmental impacts will be low to moderate, and their social impacts will be moderate to substantial. Therefore, only subprojects that are rated as “Substantial Risk” or lower will be considered for RED support. Annex 2 provides guidance on the various types of activities that could be proposed for RED subprojects, as well as the different environmental categories and suggested EA instruments for each of them.

Results of the screening will be reflected in the screening form presented in the Annex 6. While the ESF risk ratings are the governing categories, they generally correspond to the Kyrgyz categories as follows:

High Risk subprojects (which are excluded from the project) correspond with National categories (a) I and II; Substantial Risk subprojects correspond with National Category III and will require either a site (b) specific ESIA and an ESMP; Moderate Risk subprojects fall between National Categories III and IV and will require in some (c) cases a partial ESIA and or an ESMP or – an ESMP checklists; and (d) Low Risk subprojects correspond with National Category IV and require no further EA.

In addition to High Risks subprojects the Bank will also not finance several types of subprojects which are specified in the WB exclusion list, - see Annex 4.

8.2. Screening of sub-project activities and identification of ESA instruments

For Substantial Risk subprojects a site-specific Environmental and Social Impact Assessment (ESIA) (see ESIA Report Outline presented in the Annex 7) or an ESMP will be required to identify, evaluate and to prevent potential environmental and social risks and impacts. The mitigation measures for the identified impacts and risks will be incorporated into the project design of the ESMP (see Annex 8 with the format of the ESMP) or ESMP checklist (see Annex 9 with the ESMP Checklist for small scale construction and rehabilitation activities). The site-specific ESIA and ESMPs for Substantial risk subprojects will be prepared by the hired by the subproject beneficiaries Consultants under the supervision of the Implementing

Agency PMU, while for moderate and low risk subprojects by the hired by beneficiaries Consultants or the Contractors.

The purpose of the ESMP is to improve the environmental and social aspects of subprojects by minimizing, mitigating or compensating for negative effects. Environmental and Social Management Plan Checklists will be used mostly for Moderate Risk subprojects that are likely to have minor environmental impacts, and that are typical for small scale construction and rehabilitation investments. The ESMP Checklist has three sections: (a) Part 1 constitutes a descriptive part (“site passport”) that describes the project specifics in terms of physical location, the project description and list of permitting or notification procedures with reference to relevant regulations. Attachments for additional information can be supplemented if needed; (b) Part 2 includes the environmental and social screening in a simple Yes/No EMS format as well as specifies mitigation measures; and (c) Part 3 is a monitoring plan for activities carried out during the rehabilitation activities.

For Substantial and Moderate Risk subprojects it is necessary to disclose the ESA documents and conduct public consultations with the project affected people and interested parties. For all projects that would require a site-specific ESIA and ESMP should be organized face to face consultations. For that purpose, it is necessary to disclose in advance the EA document (about two weeks) on the Implementing Agency and on involved municipalities websites as well as providing hard copies to local public administrations and key interested parties (environmental authorities). During the consultations, the subproject applicants will register all comments and suggestions on improving the site-specific ESIA/ESMP documents and will prepare relevant reports to be included in the final version of the EA documents. Furthermore, other specific information related to the project activities and ESA should be also publicly available on-line on the Implementing Agency website. In some cases, the public consultation can be done virtually receiving relevant questions/proposals on-line and taking them into consideration while finalizing the subprojects ESMPs, - such consultations can be done only in the case when it is clear no any direct impacts on local population is expected, - mostly when the proposed activities are located far away from the residential areas and will not have adverse impacts on environmentally sensitive areas such wetlands, forests, legally protected areas, etc. Similarly, in the case of ESMP Checklist for rehabilitation of existing facilities, the public consultation can be done virtually. As described above, only in some cases, as per national legislation and when it is necessary to conduct a site-specific ESIA and prepare an ESMP, the subproject beneficiaries or their Contractors must submit all EA documents for approval to the oblast level State Ecological Expertise, which will issue a decision, to be used for approving and/or rejecting subproject proposals.

The final approval of infrastructure and agricultural subprojects is provided by ARIS – only once all EA documents have been prepared, accepted, and, if needed, preliminary approval is provided by the State Ecological Expertise. ARIS and subproject beneficiaries will then sign an agreement which will include statements on compliance with all EA documents. Tables 13 and 14 indicate the process flow for the risk management instruments development:

Table 13. ESMF Instruments Development for Urban and Tourism Infrastructure Investments

a) ARIS or FPs (engineers or technical specialists) conduct screening of the subproject with regard to prohibited/excluded activities; b) If the subproject passes the screening for the list of prohibited/excluded activities, ARIS specialists assist Contractors to complete Section 1 of the Environmental Screening table; Step 1. c) Based on the Environmental Checklist, the environmental category and the type of EA to be conducted is determined– either a partial ESIA or an ESMP; d) The results of the screening, including potential negative impacts and possible measures to mitigate impacts, are presented to Small Grants Program Committee during subproject prioritization meetings held at the Municipality level by the Contractors. a) If the subproject requires a complete site-specific ESIA and ESMP it should be referred to Implementing Agency for further action. Step 2. b) For Substantial and Moderate Risk subprojects, Implementing Agency specialist notes potential environmental risks and indicates how they will be prevented/mitigated in the Environmental Screening Table. If the subproject is selected for funding, ARIS specialists assist to the contractors to prepare the Step 3. ESIA and ESMP or ESMP Checklist

Notes: In the case of Substantial Risk small-scale construction and reconstruction activities the requirement is to apply the WB Environmental and Social Plan Management Checklist to address potential environmental impacts; ARIS assist the contractors to organize its disclosure of the draft partial ESIA or ESMP Checklist Step 4. and organizes a public consultation, involving NGOs, community representatives, affected groups, etc. Formal minutes will be prepared to record inputs provided by the participants. The contractors can proceed to implementation once the partial ESIA, ESMP or ESMP Checklist, Step 5. is completed and updated based on community consultations. a. The subproject applicant will submit the full set of environmental documents for consideration and further decision on funding; Step 6. b. Upon approval of subprojects, ARIS will complete subproject appraisal and proceed with signing of the financing agreement with respective sub-project beneficiaries. The ARIS and Contractor conducts periodical supervision, monitoring and reporting, as per Step 7. agreed monitoring plan. Step 8. Monitoring and reporting results will be included in the ARIS quarterly and annual reports.

Table 14. ESMF Instruments Development for Agriculture Investments

a) ARIS or FPs conduct screening of the subproject with regard to prohibited/excluded activities; b) If the subproject passes the screening for the list of prohibited/excluded activities, ARIS completes Section 1 of the Environmental Screening table; c) Based on the Environmental Checklist, the environmental category and the type of EA to be Step 1. conducted is determined– either a partial ESIA or an ESMP; d) The results of the screening, including potential negative impacts and possible measures to mitigate impacts, are presented to Productive Partnerships Selection Committee during subproject prioritization meetings held at the PIU level by ARIS and subproject beneficiaries. a) For Substantial and Moderate Risk subprojects, ARIS specialist notes potential environmental Step 2. risks and indicates how they will be prevented/mitigated in the Environmental Screening Table. If the subproject is selected for funding, ARIS specialists review the ESIA and ESMP or ESMP Checklist Step 3. Notes: In the case of Substantial Risk small-scale construction and reconstruction activities the requirement is to apply the WB EHS Guidelines to address potential environmental and social impacts; ARIS assist the subproject beneficiaries to disclose the draft partial ESIA or ESMP Checklist and Step 4. organizes a public consultation, involving community representatives, affected groups, etc. Formal minutes will be prepared to record inputs provided by the participants. The subproject beneficiaries can proceed to their implementation once the partial ESIA, ESMP or Step 5. ESMP Checklist, is completed and updated based on community consultations. a. The subproject applicant will submit the full set of environmental documents for consideration and further decision on funding; Step 6. b. Upon approval of subprojects, ARIS will complete subproject appraisal and proceed with signing of the financing agreement with respective sub-project beneficiaries. Step 7. ARIS conducts periodical supervision, monitoring and reporting, as per agreed monitoring plan. Step 8. Monitoring and reporting results will be included in the ARIS quarterly and annual reports.

8.3. Types of ESA instruments and ESIA/ESMP review process

As explained above, for all subprojects and activities with Substantial and/or Moderate risks a site-specific ESIA will be conducted and/or an ESMPs will be prepared in accordance with the project Environmental and Social Management Framework (ESMF). These will be the responsibility of beneficiaries, supported by Consultants and Contractors. The ESMP and or the ESMP checklist documents must form an annex of bidding and contracts documents for construction works. In addition, the Labor Management Procedures will also form a part of bidding documents for construction works. Implementation of ESMPs on the ground will be the part of the construction contractor’s task, however in case of any non-compliance, the municipalities (for urban and tourism subprojects), or the subproject beneficiaries will inform the ARIS which is expected to take corrective action as the primary responsible party.

Distribution of the responsibilities of all parties involved in the project is given in Table 15. The ESIA studies and preparation and implementation of ESMPs is expected to cost only a small fraction of design and construction cost, as most mitigation measures will be very generic, off-the-shelf, and implementable without specialized skills, experience or equipment. Moreover, it is assumed that most of the cost is covered in the bid proposals. For all substantial risk subprojects and for first three moderate risks subprojects, ARIS will submit site specific ESMPs to WB for prior review. When the WB is confident that ARIS has demonstrated that the process is accurate, WB will transfer this prior review to post review.

Table 15: Roles and Responsibilities

Responsible Party Responsibilities • Review, acceptance and disclose ESMF, SEP and RAP on WB’s official website; • Review the site-specific ESMPs and RAPs for all subprojects with World Bank substantial risks as well as for first three sub-projects with moderate risks.; • Review labor management procedures; • Conduct implementation support and supervision missions in order to ensure that the Project is following WB ESS requirements; • Prepare and implement the ESMF and RPF and submit for Bank approval; • Disclose the ESMF and RPF on Implementing Agency website; • Prepare ESMPs and RAPs according to ESMF and RPF; • Submit ESMPs and RAPs to the WB for prior review; • Perform the quality control and review of ESMPs and RAPs; • Disclose ESMPs and RAPs on the official website of Implementing Agency and incorporate ESMPs and RAPs into bidding documents; • Prepare Labor Management procedures; • Assign field specialists for the environmental and social monitoring; • Perform inspections of the implementation of ESMP by the construction contractor, make recommendations and decide whether additional measures are needed or not; • Implement RAPs on site and provide regular reporting on implementation to WB; • In case of non-compliance, ensure that the contractor eliminates the noncompliance and inform the WB about the noncompliance; • Prepare, update and implement a Stakeholder Engagement Plan (SEP) that considers vulnerable groups in addition to paying attention to the gender Implementing Agency (ARIS) aspect of the Project; • Hold consultation meetings, and prepare and distribute leaflets or other informative documents to inform communities, recruit a community liaison officer on project, and its impacts and construction schedule as well as rights and entitlements of PAPs; • Set up a multi-level GRM, monitor and address grievances related to the project under specified timelines; • Provide guidance to the construction contractor and engineering supervision firm. • Summarize the environmental and social issues related to project implementation to WB in regular progress reports; • Be open to comments from affected groups and local environmental authorities regarding environmental aspects of project implementation. Meet with these groups during site visits, as necessary; • Coordinate and liaise with WB supervision missions regarding environmental and social safeguard aspects of project implementation; • Conduct regular monitoring activities for the implementation of site specific ESMPs and RAPs; and • Prepare/design training and tools for Implementing Agency’s local (branch level) staff and community representatives. • Implement ESMPs on site, if required can revise the ESMP together with Contractor Implementing Agency; • Implement labor management procedures;

• Manage the grievance mechanism at the contractor, communicate grievances to Implementing Agency regularly through ESMP monitoring reports; • Monitor site activities on a regular basis (daily, weekly monthly etc.); • Prepare the ESMP progress reports for the review of Implementing Agency; and • Compensate or fix all damages occurred during construction (i.e. damages to crops, infrastructure) as set out by the ESMP or RAP/RPF. • Ensure that ESMP is implemented correctly and in a timely manner by the contractor; • Ensure timely and successful implementation of RAPs; • Perform environmental and social monitoring as defined in ESMF and RPF Beneficiaries/Clients and sub project specific ESMPs and RAPs; and • Collect information on environmental and social issues (including completed LC activities) for progress reports submitted to the WB and make sure that these are all compliant with the Bank’s requirements.

8.4. Project monitoring and evaluation

Component 5 will support Monitoring and Evaluation (M&E) activities to track, document, and communicate the progress and results of the project. An M&E team within ARIS will be responsible for overall compilation of progress and results. This Component will finance ARIS to prepare project reporting—semi-annual reports and quarterly unaudited IFRs—that will be submitted to the World Bank. This Component will also finance an MIS, which ARIS will establish and utilize for project monitoring, automatic generation of project reports, project transparency (sub-project information will be publicized on maps), and citizen feedback.

ARIS M&E team will quality of the community mobilization and other inclusion, voice, and agency activities with communities will be measured through community scorecards, which will be discussed and verified, along with financial records and project implementation records, in social audit meetings. Feedback and grievances received through the Beneficiary Feedback Mechanism will also be included in the semiannual reporting. Implementing Agency’s M&E team will collate and analyze these semi-annual assessments of outcomes and perception-based results and enter them into the MIS and include them in quarterly and annual reports to be submitted to the WB.

Results measurements will focus primarily on the outcomes defined in the results framework and the set of output indicators defined in the POM. This Component will also finance midline and end line project monitoring surveys to assess the PDO-level results indicators. Implementing Agency will be responsible for producing a completion report which draws on the MIS data and surveys prior to project completion.

8.5. Screening process in land acquisition and resettlement

The Bank undertakes screening of each proposed project for which it will provide funding in order to determine the appropriate extent and type of the involuntary resettlement to be conducted. Identification of the impacts and categorization of the subprojects is done as early as possible during subproject investment planning by the PIU and the project implementer through the procedure of social screening. The subproject shall be screened again on the other stages of its implementation, if the design, project scope is being revised and/or new project component(s) are being added. The following steps of the screening procedure needs to be followed:

1. Identify potential social risks and their significance • Collect project map superimposed on the cadastral and/or Google earth map if available. The boundary of the land needed for the project, including all safety and buffer zones, assess roads, utilities to be relocated, etc. should be made available on the map based on the available draft or detailed design. The boundary could be superimposed on the Cadastral map and/or on the Google earth map to understand potential impact of the proposed design, including illegally used land plots.

• Review available information and collect additional information required from different relevant sources if needed. At least, land use documents relevant to the subproject area should be available. • Conduct field visit if needed. • Identify any associated activity needed for sub-project.

Fill the screening form attached and identify: physical and economic displacement, including RoW clearance, direct and/or indirect impacts, full and/or partial, past, present, future, preconstruction and construction, operation stage impacts, including restrictions on easement rights and land use; impacts on vulnerable groups.

2. Identify possibility of avoiding of the impact through modifications to the subproject design and/or subproject scope. • Determine category of the project based on resettlement impacts. The Bank will review the risk classification assigned to the project on a regular basis, including during implementation, and will change the classification where necessary, to ensure that it continues to be appropriate. Any change to the classification will be disclosed on the Bank’s website.

3. Table 16 below summarized subproject categorization indicators, respective planning documents to be prepared and eligibility for the Project financing.

Table 16: Subcomponent Categorization and Resettlement Planning Requirements

Subproject Eligibility for Project Resettlement Planning No. of Affected People Category Financing Impact Requirement 200 or more PAPs experience major impacts: Not eligible for -Physical displacement and/or Severe Significant Full RAP project financing -Loss of 10 % or more of their productive assets

Not eligible for Less than 200 people experience High High Abbreviated RAP project financing major impacts No loss of assets and incomes or Due Diligence Eligible for project Low displacement None Report with financing screening form attached

4. Document screening process in a Social Screening Check List tool following the structure proposed in the Annex 13.

5. Start screening process if project scope and/or design are revised. The screening and categorization of impact on involuntary resettlement will be initiated by ARIS either with its own social safeguard specialist and other relevant staff or, if there are no such skills, with the help of external consultants. The social screening report will be prepared by the Consultant or ARIS’s Social Safeguard Specialist and reviewed by Authorized person of the Implementing Agency and PIU Director for clearance. The Social Safeguard Specialist and Director at PIU will finally endorse the social screening and safeguard categorization of the proposed sub-project.

8.6. Resettlement Policy Framework (RPF)

RPF provides a framework to appropriately identify, address and mitigate adverse socioeconomic impacts that may occur due to the implementation of subprojects that involve the involuntary acquisition of land and the subsequent resettlement of affected families. RPF also serves the following specific purposes:

• Review the existing legal framework, compare with Bank ESS-5 for gaps, if any, and indicate gap filling measures; • Describe the approach to taking of private land, assets and other common property resources;

• Valuation process of impacted assets; • the process of preparation of SIA and RAPs and their review by PIU; • Defining of the cut-off date for Title and Non-Title holders; • Consultation mechanisms/approaches to be adopted including disclosure of safeguards instruments; and • Monitoring and Evaluation arrangements including Grievance Redress Mechanisms role/responsibilities of different stakeholders.

RPF sets out principles for safeguards management, procedures to screen and survey social impacts and prepare Resettlement Action Plans to mitigate the same, lays down, cut off dates, entitlements with eligibility criteria for providing compensation and resettlement benefits, livelihood restoration, implementation arrangements necessary to implement the action plans to mitigate impacts in the course of implementing subprojects of RED.

The corresponding document for other social and economic impacts not associated with land takings and restrictions is an environmental and social management framework.

In frame of RED’s design stage an alternative design will be taken to avoid or minimize adverse impacts on private landowners and those non-title holders who have been using state lands with or without authorization. To minimize adverse impacts, the following principles shall be adopted: • Avoid or minimize acquisition of private lands unless absolutely required through analysis of alternatives; • Avoid or minimize involuntary resettlement and loss of land, structures, other assets and incomes by exploring all viable options; • Use as much state lands as possible which are free of encroachment and other encumbrances • Alternative designs will be considered in order that the project may not affect objects and sites like places of worship, cemeteries and structures that are considered socially and religiously important.; and • Incorporating the gender considerations in social management, resettlement planning and implementation process.

In case of the project has thus triggered ESS5. The scale of impact on access, assets, livelihoods or land acquisition will have to be confirmed by ARIS once the detailed design has been completed.

To avert any negative social or economic impacts on persons losing access to land, assets and income as a result of the project, a full RPF has been prepared based on the World Bank’s Environmental Social Standards on “Involuntary Resettlement”. For any project component requiring land acquisition, specific RAPs consistent with the principles in this RPF will be submitted to the Bank for approval when detailed investment planning information and the detailed scope of the civil works becomes available, and the extent of the land acquisition needed for the investment is known.

9. ADDRESSING REQUIREMENTS UNDER ESSs

9.1 Requirements and actions for addressing potential risks and impacts while conducting civil works

To address identified above risks and impacts associated with the civil works under the ESS1, ESS2 and ESS4, it would be necessary to undertake a series of activities and implement mitigation measures which should be clearly specified in the construction contracts and enforced by the client. These would include the following:

Organizational measures. Before starting the construction/rehabilitation activities it is necessary to inform the local construction and environment inspectorates and communities about upcoming activities in the media and/or at publicly accessible sites (including the site of the works). Furthermore, it is necessary to have in place all legally required permits. All works should be carried out in a safe and disciplined manner designed to minimize impacts on neighbouring residents and environment. Construction workers should be properly dressed, having when necessary respirators and safety glasses, harnesses and safety boots.

Protection of air quality and dust minimization. During construction/rehabilitation activities it is necessary to use debris-chutes above the first floor and to keep demolition debris in controlled area, spraying with water mist to reduce debris dust. It is also necessary to suppress dust during pneumatic drilling/wall destruction by ongoing water spraying and/or installing dust screen enclosures at site. It is strictly prohibited burning of construction/waste material at the site. For the transportation of any other dusty material to the rehabilitation site watering or covering of the cargo should be implemented. Reduction of dust on rehabilitation site during dry season of the year can be accomplished by watering the ground surface. Workers that perform the works should be introduced with protective closes and respirators.

Noise reduction. Before any beginning of the work it is recommended to inform all potentially affected parties and especially the neighbours either directly or through local billboards or newspapers on the rehabilitation activities. The noise should be limited by using good management practice and limiting works on regular daily shift (during the vacation time) and or after the school classes. The construction equipment and machinery used should be calibrated according to the Noise Standards.

Construction wastes and spills. As a general requirement is that the existing building elements to be rehabilitated (walls, ground cement slabs etc.) should be carefully rehabilitated and the construction wastes should be sorted and removed in an organized way and disposed on an authorized land filed. All valuable materials (doors, windows, sanitary fixtures, etc.) should be carefully dismantled and transported to the storage area assigned for the purpose. Valuable materials should be recycled within the project or sold. Wastes wherever possible should be minimized, separated and handled accordingly. When wastes are separated, they are more manageable. Some materials like doors or ceramics sinks might be usable on the site again. Non-usable materials should be taken to appropriate place for recycling. For non-recyclable wastes, in agreement with local councils the wastes will be deposited on authorized landfill. Open burning and illegal dumping of any waste is strictly prohibited. In addition to solid wastes, some amounts of hazardous wastes will be produced on the site: like the remaining from paints, enamels, oiled packaging, oils, material contaminated with oil, insulation material, etc., which have to be collected and handed over to the local self-government body authorized for collection and transportation of hazardous waste.

Temporary storage of materials (including hazardous). Stockpiling of construction material should be avoided if possible. If not, construction material should be stored on the construction site, and protected from weathering. Hazardous materials like paints, oils, enamels and others should be kept on impermeable surface, and adsorbents like sand or sawdust should be kept for handling small spillage.

Ensuring workers health and safety. The personal should have protective equipment, rubber gloves, respirators, goggles and breathing mask with filter, as well as helmets. Prior starting civil works, all workers must pass labor safety training course. In addition, it is necessary to carry out the routine inspection of the machinery and equipment for purpose of the trouble shooting and observance of the time of repair, training and instruction of the workers engaged in maintenance of the machinery, tools and equipment on safe methods and techniques of work. Special attention should be paid to welding operations. It is prohibited to distribute the faulty or unchecked tools for work performance as well as to leave off hand the mechanical

tools connected to the electrical supply network or compressed air pipelines; to pull up and bend the cables and air hose pipes; to lay cables and hose pipes with their intersection by wire ropes, electric cables, to handle the rotating elements of power driven hand tools.

Specific requirements and mitigation measures for handling asbestos containing materials and lead containing paints. In the case of rehabilitation of various buildings, it might be founded Asbestos Containing Materials, which should be handled is a specific manner, to ensure workers safety. For such types of subprojects, prior conduction construction works, contractor will have to develop Asbestos Management Plan in template provided in Annex 14. The Asbestos-Containing Materials Management Plan (ACMMP) describes and evaluates the risk of contractors (and others) encountering asbestos-containing material (ACM) at the Project construction sites during the implementation stage of the project; and it provides a procedure for dealing quickly and safely with any ACM that may be found. The WB ESS1 Environmental Assessment requires that WB-funded projects apply pollution prevention and control technologies and health and safety measures that are consistent with international good practice, as reflected in international standards such as the IFC/World Bank Environmental, Health and Safety General Guidelines (2007). If national legislation differs from these standards, the borrower is required to achieve whichever is more stringent. There is national Hazardous waste management procedure of Kyrgyz Republic #855 dated from 28.12.2015 covering disposal of ACM24 in The Kyrgyz Republic. However, the procedure does provide clear description of handling ACM, therefore, the ACMMP follows the World Bank Guidelines. The main principles of the ACMMP is (i) prompt and effective action to contain and deal appropriately with the ACM (including safe management and disposal); and (ii) maintaining the safety of site personnel and the general public always. The ACMMP is designed for use by Contractor, RPCU and the Project Implementation Unit (PIU) to manage the ACM risk over the project, and, by contractors to deal efficiently with any ACM they or their workers encounter. The procedural element of the ACMMP is therefore designed to provide straightforward instructions that can be easily and quickly understood without the need for specialist knowledge and without referring to other sources.

The general approach while handling this material is that constructors avoided crushing/destruction of asbestos plates from the roofs and or from the walls insulation and deposited them in an organized manner on the construction sites. Also, the constructors should avoid releasing asbestos fibers into the air from being crushed. It is also imperative while working with asbestos plates the workers must wear special closing, gloves and respirators. If the use of asbestos-containing materials (ACM) it is anticipated for the roof renovation, it is necessary to provide brief information about alternative non-asbestos materials, their availability and the rationale for the material choice made. Once the presence of ACM in the existing infrastructure has been presumed or confirmed and their disturbance is shown to be unavoidable, incorporate the following requirements in the EMP for construction works: • Develop a plan for doing works involving removal, repair and disposal of ACM in a way that minimizes worker and community asbestos exposure. The plan should include: (i) Containment of interior areas where removal will occur in a negative pressure enclosure; (ii) Protection of walls, floors and other surfaces with plastic sheeting; (iii) Removal of the ACM using wet methods and promptly placing the material in impermeable containers; (iv) Final clean-up with vacuum equipment and dismantling of the enclosure and decontamination facilities; (v) Disposal of the removed ACM and contaminated materials in an approved landfill; (vi) Inspection and air monitoring as the work progresses, as well as final air sampling for clearance, by an entity independent of the contractor removing the ACM;

• Require that the construction firms/and or individuals employed during the construction have received training in relevant health and safety issues;

24 KR Sanitary Norms SanPin 2.2.3.013-03 “Work with asbestos and ACM” was one of a number of pieces of legislation deregulated in 2009. Notwithstanding their lack of legal status, as the most recently-available local standard, the regulations were referred to in preparing the ACMMP and the protocol for handling and disposal of ACM (see Section 3) incorporates soil covering requirements from the SanPin.

• Provide for all construction workers with personal protection means, including respirators and disposable clothing; • Require that the beneficiary or the selected contractor notifies authorities of the removal and disposal according to applicable regulations and cooperates fully with representatives of the cognizant agency during all inspections and inquiries.

For lead containing paints and the rest of hazardous wastes the above mentioned national hazardous waste management procedure and standard best practice need to be applied – collection and storage in the special designated and equipped places with proper labeling, timely disposal, etc.

9.2 Specific measures for safe agricultural chemicals management and addressing ESS2 and ESS4 requirements

General remarks. Although the project will not support purchasing and use of mineral fertilizers and pesticides, the farmers routinely use acaricides to control ticks and other ectoparasites. Furthermore, to a limited extent they also purchase on their own agro-chemicals for improved agricultural production which might cause impacts on the environment and on the farmers’ health. By reducing pesticide use, agriculture and livestock production operators may reduce not only the environmental impacts of their operations, but also production costs. Pesticides should be managed to avoid their migration into off-site land or water environments by establishing their use as part of an Integrated Pest Management (IPM) strategy and as documented in a Pesticide Management Plan (PMP) (see Annex 16 with main requirements for a PMP). The following stages should be considered when designing and implementing an IPM strategy, giving preference to alternative pest management strategies, with the use of synthetic chemical pesticides as a last option.

The objective of ESMF in this regard is to encourage adoption of Integrated Pest Management approach and increase beneficiaries’ awareness of pesticide-related hazards and good practices for safe pesticides use and handling. This will be done by providing relevant information dissemination and training. Below are presented key issues that should be reflected in the training curricular.

Principles of the Integrated Pest Management25. The primary aim of pest management is to manage pests and diseases that may negatively affect production of crops so that they remain at a level that is under an economically damaging threshold. Pesticides should be managed to reduce human exposure and health hazards, to avoid their migration into off-site land or water environments and to avoid ecological impacts such as destruction of beneficial species and the development of pesticide resistance. The IPM consists of the judicious use of both chemical and nonchemical control techniques to achieve effective and economically efficient pest management with minimal environmental contamination. IPM therefore may include the use of: a) Mechanical and Physical Control; b) Cultural Control; c) Biological Control, d) rational Chemical Control. Although IPM emphasizes the use of nonchemical strategies, chemical control may be an option used in conjunction with other methods. Integrated pest management strategies depend on surveillance to establish the need for control and to monitor the effectiveness of management efforts.

Alternatives to Pesticide Application. Where feasible, the following alternatives to pesticides should be considered: • Rotate crops to reduce the presence of pests and weeds in the soil ecosystem; • Use pest-resistant crop varieties; • Use mechanical weed control and / or thermal weeding; • Support and use beneficial organisms, such as insects, birds, mites, and microbial agents, to perform biological control of pests;

25This section is based on the World Bank Group in the Environmental, Health, and Safety Guidelines prepared in 2007.

• Protect natural enemies of pests by providing a favourable habitat, such as bushes for nesting sites and other original vegetation that can house pest predators and by avoiding the use of broad- spectrum pesticides; • Use animals to graze areas and manage plant coverage; • Use mechanical controls such as manual removal, traps, barriers, light, and sound to kill, relocate, or repel pests.

Pesticide Application. If pesticide application is warranted, users are recommended take the following actions: • Train personnel to apply pesticides and ensure that personnel have received applicable certifications or equivalent training where such certifications are not required; • Review and follow the manufacturer’s directions on maximum recommended dosage or treatment as well as published reports on using the reduced rate of pesticide application without loss of effect, and apply the minimum effective dose; • Avoid routine “calendar-based” application, and apply pesticides only when needed and useful based on criteria such as field observations, weather data (e.g. appropriate temperature, low wind, etc.), • Avoid the use of highly hazardous pesticides, particularly by uncertified, untrained or inadequately equipped users. This includes: • Pesticides that fall under the World Health Organization Recommended Classification of Pesticides by Hazard Classes 1a and 1b should be avoided in almost all cases, to be used only when no practical alternatives are available and where the handling and use of the products will be done in accordance with national laws by certified personnel in conjunction with health and environmental exposure monitoring; • Pesticides that fall under the World Health Organization Recommended Classification of Pesticides by Hazard Class II should be avoided if the project host country lacks restrictions on distribution and use of these chemicals, or if they are likely to be accessible to personnel without proper training, equipment, and facilities to handle, store, apply, and dispose of these products properly; • Avoid the use of pesticides listed in Annexes A and B of the Stockholm Convention, except under the conditions noted in the convention and those subject to international bans or phase outs; • Use only pesticides that are manufactured under license and registered and approved by the appropriate authority and in accordance with the Food and Agriculture Organization’s (FAO’s) International Code of Conduct on the Distribution and Use of Pesticides; • Use only pesticides that are labelled in accordance with international standards and norms, such as the FAO’s Revised Guidelines for Good Labelling Practice for Pesticides; • Select application technologies and practices designed to reduce unintentional drift or runoff only as indicated in an IPM program, and under controlled conditions; • Maintain and calibrate pesticide application equipment in accordance with manufacturer’s recommendations. Use application equipment that is registered in the country of use; • Establish untreated buffer zones or strips along water sources, rivers, streams, ponds, lakes, and ditches to help protect water resources; • Avoid use of pesticides that have been linked to localized environmental problems and threats.

Pesticide Handling and Storage. Contamination of soils, groundwater, or surface water resources, due to accidental spills during transfer, mixing, and storage of pesticides should be prevented by following the hazardous materials storage and handling recommendations. These are the following: • Store pesticides in their original packaging, in a dedicated, dry, cool, frost-free, and well aerated location that can be locked and properly identified with signs, with access limited to authorized people. No human or animal food may be stored in this location. The store room should also be designed with spill containment measures and sited in consideration of potential for contamination of soil and water resources; • Mixing and transfer of pesticides should be undertaken by trained personnel in ventilated and well- lit areas, using containers designed and dedicated for this purpose. • Containers should not be used for any other purpose (e.g. drinking water). Contaminated containers should be handled as hazardous waste and should be disposed in specially designated for hazardous

wastes sites. Ideally, disposal of containers contaminated with pesticides should be done in a manner consistent with FAO guidelines and with manufacturer's directions; • Purchase and store no more pesticide than needed and rotate stock using a “first-in, first-out” principle so that pesticides do not become obsolete. Additionally, the use of obsolete pesticides should be avoided under all circumstances; a management plan that includes measures for the containment, storage and ultimate destruction of all obsolete stocks should be prepared in accordance to guidelines by FAO and consistent with country commitments under the Stockholm, Rotterdam and Basel Conventions. • Collect rinse water from equipment cleaning for reuse (such as for the dilution of identical pesticides to concentrations used for application); • Ensure that protective clothing worn during pesticide application is either cleaned or disposed of in an environmentally responsible manner • Maintain records of pesticide use and effectiveness.

Safety issues in mineral fertilizers usage and handling. Similarly, as in the case of usage of pesticides, fertilizers usage may provide important benefits for forage production, they also pose certain risks associated with accidental expose of environment and of farmers during their inappropriate handling and usage. To avoid adverse environmental impacts while using mineral fertilizers it is necessary to comply strictly with a series of requirements, stipulated in the existing legal documents as well as in the fertilizers Guidelines for their handling. The rules and procedures of production, storage, transportation and usage of the mineral fertilizers are reflected in a relatively small number of documents, and most of them were adopted at the time of the USSR.

Main requirements while using mineral fertilizers. The usage of different mineral fertilizers should be done depending on such factors as type and quality of the soil, type of the crop, system of crop rotation, weather and climate conditions, ways and terms of their application.

Provisions with regard to fertilizers storage: • Keep stocks of fertilizers, and soil amendment materials to the minimum required. • Ensure that the storage facility is appropriately secured. • Fertilizers and soil amendment materials are not to be stored in contact with ground surfaces. • Storage areas/facilities are to weather-proofed and able to exclude runoff from other areas. • Do not store in close proximity to heat sources such as open flames, steam pipes, radiators or other combustible materials such as flammable liquids. • Do not store with urea. • Do not contaminate fertilizers, and soil amendment materials with other foreign matter. • In case of fire flood the area with water. • If augers are used to move the material to ensure that any residue(s) in the immediate area is cleaned up. • Dispose of empty bags in the appropriate manner.

Provisions with regard to fertilizers field usage: • Keep fertilizer amounts to a minimum and covered to avoid unnecessary expose to open air. • Keep spreaders and air seeders that are left in the field overnight covered. • Cover spreader and air seeders between jobs. • Ensure that the drill, air seeder and/or fertilizer box is completely empty at the end of each day. If the drill, air seeder and/or fertilizer box cannot be fully emptied fill to capacity prior to storage for the night. • Do not store dry urea with dry ammonium nitrate.

Ensuring minimization of hazards associated with inappropriate handling and usage of fertilizers: The Table 19 below provides information about typical hazard scenarios that that may arise in conjunction with the procurement, handling and storage of fertilizers as well as the recommended measures to control the potential risks.

Table 19: Typical hazard scenarios and recommended measures in the case of mineral fertilisers handling

Likely Hazard Scenario Recommended Control Strategy Spillage • Ensure all storage areas and/or facilities are secure and appropriate. • Ensure all fertilizer products can be contained within the storage area and/or facility selected. • Provide appropriate equipment and materials to clean up a spillage Transportation and delivery Cover any loads of fertilizer products whilst in transit. of goods Ensure that deliveries of fertilizer products are made at appropriate times. Do not accept any containers of fertilizer products that are damaged and/or leaking. Ensure that any spillages that occur during delivery are cleaned up appropriately. Drift of dust from storage Keep fertilizer products covered and/or sealed. areas and/or facilities Clean up spillages promptly. Keep “in use” stocks to the minimum required. Staff responsible for storage areas and/or facilities to will ensure that the drift of dust beyond the perimeter is kept to a minimum. Storage areas - Keep floor surfaces swept clean of fertilizer to prevent tracking by people and/or Floors vehicles beyond the perimeter. Sweep up and dispose of spillages in a timely and appropriate manner. Cross contamination of • Keep each fertilizer product will in a separate storage container and/or position within product the facility and/or area. • Confusion of Product • Maintain an accurate storage manifest/register. • Keep products and blends are always segregated. • Ensure all storage bays and bins are clearly labelled. • Ensure all storage, loading and blending plant and equipment is cleaned from all residues when changing from one product to another. Do not store product in bags that are not correctly stamped. Occupational Health and• Contact between fertilizer products, people and livestock will be minimized. Safety Risk Assessments Risk Assessments are required to be conducted on the procurement, storage and handling of fertilizer products. Contact with people and • Managers will develop, implement and monitor the effectiveness of hazard livestock management procedures. • All persons using fertilizer products are to adhere to the hazard management procedures and adopt safe working practice and ensure that direct contact with fertilizer and the inhalation of fertilizer dust is minimized. • Managers are to ensure that staff is made aware of any national and industry regulations which have to be observed. Personal Protective • Staff must be provided with appropriate PPE when using fertilizer products. Equipment Lack of appropriate warning Managers must ensure that appropriate safety warning signs and/or information is safety signage and displayed/ available regarding nature of hazards and risk control measures. information Poor housekeeping and/or • All staff is responsible for implementing sound housekeeping practices in storage areas routine maintenance and arranging regular routine maintenance for all equipment used. • Defective &/or Conduct regular inspection & testing of equipment and infrastructure to identify what unserviceable plant & maintenance requirements equipment

Incorrect or inappropriate Fertilizer blends to be prepared using the right raw materials in the appropriate mixtures of product proportions. All products will be loaded into spreaders etc., in the right condition to the right weight. No training Staff will undertake appropriate training. Lack of appropriate records All relevant records and documentation to be kept and maintained e.g. training records, &/or documentation risk assessments, maintenance schedules, recipes for fertilizer blends, MSDS’s etc.

Ensuring safe application of acaricides in livestock, silk production and beekeeping. To reduce the impacts of ticks and other ectoparasites farmers routinely use Acaricides which are applied through, dipping, spraying, spot treatment or hand dressing. Dipping provides a highly effective method of treating animals with Acaricides for the control of ticks. The disadvantage of this method however is the initial construction cost and the cost of Acaricide which make this method unattractive for small scale ranching operations. The method involves immersion of animals in a dipping tub containing solution of chemicals.

The spraying method of tick control is not as efficient as dipping. It involves the use of fluid Acaricides applied to animals by means of a spray. The spraying equipment is portable and needs only small amounts of Acaricides to be mixed for the application. The Acaricides may not be thoroughly applied to all parts of the animal body hence it is less efficient than the dipping method of application. The 2 methods mentioned above, dipping and spraying may not exposed ticks in the inner parts of the ear, under part of the tail, the tail brush and the areas between the teats and the legs in cattle with large udder, to the Acaricides and hence may escape treatment. The process of applying Acaricides to these areas by hand is termed hand dressing or spot treatment. The advantage here is that the method is more effective and economical in terms of cost of Acaricide as spot treatment is restricted to only selected areas instead of the whole animal. The disadvantage however is that the process is time consuming and laborious.

To reduce inappropriate handling and improve usage of acaricides and anti-helminths at recommended doses, the labelling of parasiticides in the project area should be packaged in suitable containers with instruction in the national/Russian language, include the use of containers graduated by pictorial symbols or pictograms illustrating animal size and corresponding quantities of the drug required for treatment. Also, biological and integrated parasite management methods should be encouraged and taught to rural farmers to reduce the use of pervasive veterinary parasiticides. Stringent policies and efforts by Government of Kyrgyz Republic are also required to regulate the importation, distribution and marketing of agrochemicals. All specified measures will be promoted via the training Program supported under the project.

9.3 Specific mitigation measures for livestock related subprojects

Ensuring bio-safety and waste management and preventing inadvertent spread of the animal diseases. The Project will finance essential equipment, consumables and reagents, staff training and technical assistance for the veterinary laboratories and veterinary posts to be installed. A focus of the training activities will be on laboratory waste management by basing training and upgrades to laboratory infrastructure and equipment on “International Best Practice in Safety of Research Laboratories” developed by the US National Institutes of Health (see Annex 1). Design of upgrades for veterinary laboratory and posts will include facilities for safe disposal of wastes and contaminated materials. Construction and renovation work associated with rehabilitation of laboratory and veterinary posts will be carried as specified above, ensuring the implementation of all mitigation measures specified in the EMP Checklist. The EMP Checklist will be included as part of the construction/rehabilitation contracts. In addition, waste generated in upgraded laboratory facilities will be managed using existing national guidelines that are consistent with international good practice.

Carcass. To prevent infectious illness and odor as well as the generation of vector, it is required to take proper measures to manage and rapidly disposal of carcass. The operator should implement the actual management and disposition system and not recycle carcass as animal feed. It is recommended to reduce mortality by taking proper animal-care and prophylactic measures. Livestock and poultry died of disease shall be timely disposed of and not allowed to be casually discarded, sold or reused as feed. While collecting carcass, proper storage is required, if necessary, refrigeration should be taken to prevent decomposition. It is feasible to bury carcass at the site if no other carcass disposal methods are issued by local authority. Landfill site, regardless of its location, should be accessible for excavating equipment. The site with soil stability and low permeability should be equipped with insulation layer strong enough to separate the area from houses and water sources to prevent pollution caused by odor from buried decaying matters or filtered matters.

Animal waste. Livestock and poultry excrement collection system: for the ground designed with groove, the livestock and poultry excrement should be pushed falling into the underground storage zone; for the ground designed without groove, it is necessary to scrape and wipe the floor and flush with water. For the

livestock and poultry excrement used for farmland fertilizer, since it contains dangerous chemical and biological elements, it is necessary to make careful analysis of potential impact beforehand. Some treatments to some extent and preparations as well as proper application ratio may be required before utilizing the excrement as fertilizer.

To reduce the pollution of livestock and poultry excrement to the surface water, ground water and air as much as possible, it is recommended to select proper feeds according to the nutrient requirement in different production and growth stage of animal; select the feeds low in protein and amino acid; by grinding feeds, to improve absorptivity and reduce the consumption of feed, thus less livestock and poultry excretion will be produced (while increasing the livestock and poultry yield); select the high-quality and pollution-free feeds (for instance, the content of pesticide and dioxin must be known or not exceed the standard requirement) with content of additives like copper and zinc not exceeding the required amount for animal’s healthy growth. It is necessary to regularly collect solid wastes (such as the bedding and excrement) and refrain from leaving the wastes overnight. To reduce the storm runoff in the storage system, the dry livestock and poultry excrement or garbage from the farm should be stored in a place with cover or ceiling. In addition, the following management techniques are recommended to further reduce the impacts of water runoff from poultry operations: reduce water use and spills from animal watering by preventing overflow of watering devices and using calibrated, well-maintained self-watering devices; install vegetative filters to trap sediment; install surface water diversions to direct clean runoff around areas containing waste.

Preventing environmental pollution and ensuring sound manure management. Proper manure management refers to capture, storage, treatment, and utilization of animal manures in an environmentally sustainable manner. It can be retained in various holding facilities. Animal manure (also referred to as animal waste) can occur in a liquid, slurry, or solid form. It is utilized by distribution on fields in amounts that enrich soils without causing water pollution or unacceptably high levels of nutrient enrichment. Manure management is a component of nutrient management. One of the key factors of animal waste management is the design of one or more storage structures (ponds, tanks, and/or dry stacks) that can store the waste generated for time period recommended by the state and local regulatory agency. It is also necessary further reduce the moisture content of dry poultry excreta (e.g. by blowing dry air over it or by conveying ventilation air through the manure pits) and minimize the surface area of manure in storage.

To address all pollution risks associated with manures, slurries and grazing animals, particularly in bathing water catchments, it is essential to apply following approaches, the main individual components of which are as follows: • minimizing dirty water around the steading; • better nutrient use; • a risk assessment for manure and slurry; • managing water margins. • avoid spreading close to domestic or public buildings; • spread livestock slurries and manures when the wind direction is away from public/residential areas and areas designated for their conservation value; • avoid, where possible, spreading in the hours of darkness. • locate any field heap of farmyard manure: • at least 10m away from any clean surface water or field drain or watercourse and at least 50m from any spring, well or borehole; and • as far away from residential housing as possible. • spread livestock manures only when field and weather conditions are suitable to prevent water pollution.

Pollution risk can occur at all stages of handling livestock slurry and manures, including collection, storage, transportation and land application. At all times, the quantity of material requiring to be collected, stored and applied to land should be minimized. The risk of pollution occurring is usually higher with liquid systems than with solid based systems. Minimize the unroofed steading areas to which stock have access, or alternatively roof these areas where practical. It is needed always to separate uncontaminated water from dirty water and prevent it from entering the handling system.

Many farms have existing drainage systems to allow run-off from roads and yards to discharge to local watercourses. This drainage can carry silt, chemicals, Fecal Indicator Organisms [FIOs] and other materials, thereby causing a risk of pollution. It may be possible to make use of properly sited and designed ponds to deal with this currently uncollected drainage and minimize pollution risks. Farmers should draw up a Manure Management Plan (also known as Farm Waste Management Plans). Professional advice should be provided from relevant (mandated) agencies. There are also other examples of mitigation measures that can be followed26.

Implementation of project trainings activities for capacity building and knowledge improvement in area of sound manure management, proper and advanced feeding practices, application of IPM approaches, etc., can also ensure positive environmental impacts on pastures status. Environmental assessments for proposed sub-projects in area of fodder production or animal breeding or other will be conducted which will consider existing pastures which can be potentially affected both negatively or positively, and site-specific environmental and social management plan with mitigation measures will be developed as a part of ESA report. The project would support additional TA activities to strengthen the existing institutional capacities to ensure that effective ESAs are conducted, ESMPs are implemented properly and monitoring systems are put in place. Involved parties will have responsibilities on implementation of specific ESMP and mandated bodies (persons) will conduct relevant monitoring on regular basis.

Mitigation of potential impacts of the meat and dairy – processing activities. Production of meat and its sub-products as well as of cheese, yogurt, butter and other dairy products are associated with waste waters, solid waste management, emissions and labor safety. These require typical mitigation measures, well known which include the following: • Avoid meat and milk, product, and by-product losses; • Install grids to reduce or avoid the introduction of solid materials into the wastewater drainage system; • Adopt best-practice methods for facility cleaning systems, using approved chemicals and / or detergents with minimal environmental impact and compatibility with subsequent wastewater treatment processes; • Where possible and subject to sanitary requirements, segregate solid process waste and nonconforming products; • Optimize product filling and packaging equipment to avoid product- and packaging-material waste; • Optimize the design of packaging material to reduce the volume of waste; • Plastic waste from packaging cuttings can be reused, or should be sorted as plastic waste for off- site recycling or disposal, etc.

Recommended measures to prevent and control dust emissions during dairy processing activities mainly consist of the installation of exhaust ventilation equipped with dry powder retention systems (e.g. cyclones or bag filters). Bag filters are generally favored over wet scrubbing methods, as they use significantly less energy, generate less or no wastewater, and produce less noise. The presence of hot air and fine dust creates fire and explosion impacts. All modern spray dryers should be equipped with explosion release mechanisms and fire prevention systems. Measures to be taken to minimize potential negative environmental impacts depend on their type, magnitude, combination and distribution. All of them are expected to be typical, temporary by nature and site specific and can be easily mitigated by applying relevant mitigation measures. Furthermore, the project would support additional TA activities to strengthen the existing institutional capacities to ensure that effective ESAs are conducted, ESMPs are implemented properly and monitoring systems are put in place. Attention would be those activities resulting in water, soil and air pollution, and soil erosion.

Prevention and response-focused activities are expected to have a positive environmental impact, as the investments in facilities, equipment, and training for veterinary and public health service staff and laboratories will improve the effectiveness and safety over existing animal diseases handling and testing procedures by meeting international standards established by the World Organization for Animal Health (OIE) and the World Health Organization (WHO).

26http://www.gov.scot/Publications/2005/03/20613/51370

9.4 Ensuring Occupational Health and Safety (OHS) issues

OHS issues must be covered in all supervision and monitoring activities. That means specifically asking whether there have been any incidents, checking logs and the availability and use of protective and preventative equipment. Respectively, the safeguards sections of all progress reports include statements indicating that the PIU have checked occupational health and safety issues, and existing procedures in this regard, and asked if there have been any serious incidents or fatalities. Similarly, the PIU will ensure that at the project launch workshop and in the operational manual contain adequate provisions for occupational health and safety.

The relevant text on OHS to be included in the progress reports might be as follows: The project has reported X Occupational Health and Safety (OHS) incidents since its start. Of these, X are classified as SEVERE, X as SERIOUS, and X as INDICATIVE. All incidents are confirmed accounted through the Environment and Social Incident Response Toolkit (ESIRT) (see below). During this mission period, the PIU checked with all contractors and consultants if any OHS incidents occurred, either reported or not yet reported. The PIU found (EITHER) (i) no new incidents occurred during this supervision period, or (ii) X incidents occurred (include classification, brief description of event and follow-up actions, and confirmation event was reported via SIRT)].

The World Bank Environment and Social Incident Response Toolkit helps to manage incidents consistently by providing clear guidance on how to classify the incident’s severity, how to provide a proportional response according to severity, and clarifies roles and responsibilities. ESIRT also requires a root cause analysis to be done by the Borrower when there is a severe incident.

“Incident” is defined as an accident, incident, or negative event resulting from failure to comply with identified Safeguards measures OR conditions that occur because of unexpected or unforeseen Safeguards risks or impacts during project implementation. Examples of Safeguards incidents include: fatalities, serious accidents and injuries; social impacts from labor influx; sexual exploitation and abuse (SEA) or other forms of gender-based violence (GBV); major environmental contamination; child labor; forced labor; risks and adverse impacts from temporary project induced labor influx; loss of biodiversity or critical habitat; loss of physical cultural resources; and loss of access to community resources. In most cases an incident is an accident or a negative impact arising if the contractor does not comply with the WB security policy or unforeseen events which occurred during the Project implementation.

The WB ESIRT does not replace monitoring procedures and implementation of regular monitoring of the implementation of the project safeguard provisions. The document includes the following six stages of the incident management and reporting process:

Stage 1. Informing the PIU, local authorities, the WB, the public, providing urgent health care and providing the necessary safety measures for workers. All measures must be taken immediately. In parallel, all necessary data about the incident are collected - its scope, degree of danger to public health and environment, location, cause of occurrence, duration, what decisions are taken by the Executor, what actions should be taken next, etc. Stage 2. Assess severity of the incident. The Executor should promptly provide information to the WB about the incident and its degree of danger. Stage 3. Notification. The Executor is preparing an incident notification for the WB. Submission of a notification in the event of an incident should be determined when signing a contract with the Contractor. Stage 4. Investigation of the incident. The Executor provides any information requested by the WB and does not prevent to visit the incidence scene. The Executor is also obliged with the assistance of the Contractor to analyze the causes of the incident and to document the information received. The Executor may need to involve external experts in investigation of the incident. The term of the investigation should not exceed 10 days after the incident. The findings of the investigation should be used by the Executor and the Contractor to develop corrective actions and draw up a corrective action plan (CAP) to avoid any future repetition of what happened. Besides, the conclusions should be submitted to the WB. Stage 5. Corrective Action Plan. The Executor develops a CAP with specific actions, responsibilities, implementation dates and monitoring program and discusses it with the WB. In case of serious incidents,

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the WB and the Executor agree on a set of measures to eliminate the major causes of sources for such incidents. The CAP indicates actions, duties and terms that should be performed by the Executor and the Contractor. The Executor is responsible for implementation of the CAP. The CAP may include development or modernization of technical measures to protect the environment and prevent further pollution, conduct training, including on issues of emergency health care, compensation for insurance claims of injury or death. If the WB considers that the CAP measures are not effective, and/or the Executor has shown unwillingness or inability to take corrective measures, the WB may consider a decision on complete or partial suspension of the loan payments until such actions are taken, or in some cases it may consider a question of cancellation of the whole or part of the Project after its suspension. Stage 6 Monitoring execution of the CAP. The Executor performs the CAP, monitors execution of individual CAP items and provides a report on implementation to the WB. For supervision of OHS issues during the project implementation which include civil works, the PIU Environmental Specialist may use, as appropriate, the “Health, Safety and wellbeing inspection Checklists” see Annex 15.

The proposed above scheme and stages of subproject beneficiaries and of ARIS in the case of OHS accidents are mandatory and will be implemented through the whole project implementation.

9.5 Specific requirements for subprojects with potential risks and impacts on Biodiversity (ESS6)

As specified above, the requirements of this standard are not relevant for the project. To ensure there will be project impacts on biodiversity, the environmental and social impact assessment for all project activities and subprojects will screen them, as set out in ESS1 and ESS6, will consider direct, indirect and cumulative project-related impacts on habitats and the biodiversity they support. This assessment will consider threats to biodiversity, including habitat loss, hydrological changes, nutrient loading, pollution and incidental take. Furthermore, in accordance with the Law of the Kyrgyz Republic “On Specially Protected Natural Areas” (2011) (Chapter 3. State Natural Parks and Article 21. Regime of use of state natural parks) it permits conduct of construction works on the territories of the State natural parks in the zone of limited economic activity, where administrative and tourist facilities are located. The economic activities (the construction and operation of hotels, campsites, museums and other tourist services) which will improve functioning of the state natural park to serve its visitors. Where the environmental and social assessment has identified potential risks and impacts on biodiversity or habitats, the proposed sub-projects will be excluded from financing.

Considering specified above requirements in WB ESS6 and in national legislation, ARIS will ensure during the ESIA all potential impacts on natural habitats and protected areas will be identified. In the case the proposed projects and activities will cause adverse impacts on such sites, they will be excluded from the project financing. Furthermore, no any activities or projects, proposed within the legally protected areas, which are qualified within so call critical habitats will be financed, - within these areas might be supported only those activities which will not have any impacts on the physical environment but may facilitate their activities by installing some banners, fencing the areas, organizing solid waste management by providing containers, creating tourist stops, etc. Furthermore, all staff of construction companies which will operate in the vicinity of natural habitats or protected areas will be strictly prohibited from hunting, foraging, logging or other damaging activities. Additionally, for large trees in the vicinity of the project activities, there will be required to mark and protect them with by fencing them, protecting the root system and avoiding any damage to the trees. Lastly, the project any activities involving extraction of construction material from unlicensed borrow pits, quarries or waste dumps in adjacent areas, especially within national habitats.

9.6 Requirements for subprojects with impacts on Cultural Heritage

As specified above, the project might in some cases rehabilitate facilities which are included in the list national or local PCRs. It is expected that these rehabilitation and restoration works will mainly include primarily repair and upgrading of buildings and may also cover some interior utility networks (electricity, water, heating, a/c, etc.) and landscaping. As required by the WB ESS8 and National legislation, rehabilitation of each such site will be done in accordance with principles of good practice in the cultural heritage field. The task team that would be assigned for project design would include a safeguard specialist and/or a PCRs specialist knowledgeable in aspects of heritage preservation, based on an agreed PCRs

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management plan which will be consulted with all interested parties and will consider received stakeholder suggestions and inputs. Additionally, the project might support a series of subprojects related to various civil works that would involve significant excavations, demolition, movement of earth, or other changes in the physical environment, during which unexpectedly might be found physical cultural resources. To address this issue all such subprojects will have special clauses in all contracts for civil works on “chance finds procedure” which will set out how chance finds associated with the subproject will be managed.

These will specify the following: (a) do not disturb any chance find further until an assessment by competent professionals is made and actions are identified; (b) notify relevant authorities of found objects or sites by cultural heritage experts; (c) to fence-off the area of finds or sites to avoid further disturbance; (d) to conduct an assessment of found objects or sites by cultural heritage experts; (e) to identify and implement actions consistent with the requirements of the ESS 8 – Cultural Heritage and national law; and (f) when needed, to train project personnel and project workers on chance find procedures.

As the project also might support rehabilitation of facilities which constitute Physical Cultural Resources the subproject ESIA should be following the WB ESS8 on PCRs and national requirements in this regard. Respectively, while developing the site specific ESMPs, the facilities’ administrations, in consultation with the national authorities, relevant PCRs experts, and relevant project-affected groups, identify appropriate mitigation measures to address the impacts on PCRs. Such measures may include (a) documentation; (b) conservation or rehabilitation in situ; and (c) relocation and conservation or rehabilitation. During rehabilitation or restoration of cultural heritage structures, the facilities’ administration will maintain the authenticity of form, construction materials and techniques of the structure(s) in compliance with applicable national and subnational laws and/or zoning regulations and in accordance with GIIP. Depending on the nature and the scale of the proposed civil works and respectively on the risks and impacts of the subproject, these measures and actions can be specified in a stand-alone Cultural Heritage Management Plan (CHMP) that is consistent with the country’s overall policy framework and national legislation and considers institutional capabilities regarding physical cultural resources. The CHMP will include an implementation timeline and an estimate of resource needs for each mitigation measure. As part of the public consultations required in the EA process, in documenting the presence and significance of physical cultural resources, assessing potential impacts, and exploring avoidance and mitigation options the consultative process for the physical cultural resources subprojects includes relevant project-affected groups, concerned government authorities, and nongovernmental organizations. Among other interested parties, should be included project affected parties, including individuals and communities within the country who use or have used the cultural heritage within living memory, as well and national or local regulatory authorities that are entrusted with the protection of cultural heritage and nongovernmental organizations and cultural heritage experts, including national and international cultural heritage organizations. The findings of the physical cultural resources component of the EA are disclosed as part of, and in the same manner as, the ESA reports.

9.7 ESA requirements for the existing enterprise

For expansion of existing facilities or where change of technology is proposed, or when the farmers are asking for matching grants for seeds; mineral fertilizers and agricultural machinery purchasing an environmental audit may be required, and/or environmental due diligence procedure, depending on the nature of the sub-project. Such procedure would include collecting and checking relevant information and documents regarding environmental performances of selected enterprise (see Table 23).

Table 23 - Environmental eligibility checklist for the existing enterprise and screening criteria for the proposed project

No. Criteria N/A Yes No Comments

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1 Does the enterprise have a valid If no, (a) all required operating permit, licenses, licenses/permits/approvals etc. approvals etc.? must be obtained prior to project approval; or (b) the project investment must include funds to obtain them.

2 Does the enterprise meet all If no, (a) the facility must take national environmental regulations corrective measures to meet all regarding air emissions, water environmental regulations prior to discharges and solid waste project approval, or (b) the management? investment must include funds to meet them. 3 If the enterprise has any significant If the enterprise has outstanding outstanding environmental fees, liabilities, it must take corrective fines or penalties or any other measures to remove them prior to environmental liabilities (e.g. project approval. pending legal proceedings involving environmental issues etc.) will the investment be used to correct this condition? 4 If any complaints were raised by If yes, the PFIs should examine the local affected groups or NGOs nature of the complaints and regarding conditions at the facility, actions taken to address them. If will the investment be used to there are significant unresolved remedy these complaints? complaints, the PFIs should consult with the WB regarding appropriate actions.

9.9 Transboundary impacts on International waters

The OP 7.50 on International Waters is triggered by the project. The proposed activities will be located in the Osh Region of the Kyrgyz Republic, which is located on the Ak-Bura river, a tributary of the Syr-Darya River that is shared by the Kyrgyz Republic, Kazakhstan, Tajikistan, and Uzbekistan and thus an international waterway according to OP 7.50. The proposed investments will include rehabilitation of field- level irrigation systems, and rehabilitation and improvement of existing water supply and sanitation infrastructure in Osh and Uzgen city. These investments are proposed to be relatively small-scale of rehabilitation nature and are not expected to lead to increased water abstraction or increased volume of discharged waste waters and will not extend any existing schemes. The Project will not adversely impact the quality or quantity of water flows to the other riparians and will also not be adversely affected by the other riparians' possible water use. An exception to the notification requirements according to paragraph 7 (a) of OP 7.50 was approved by the Regional Vice President on November 22, 2019.

9.10 World Bank Assistance in complying with the ESSs

The Bank’s environmental and social specialists will provide support to ARIS to ensure smooth implementation of the Project activities in consistency with the applicable Environmental and Social Standards of the Bank. Regular site visits will be carried out to monitor the compliance of the contractors with good construction practices and other requirements to be specified in site-specific ESMPs. Additionally, the social specialists will be reviewing the consistency of land acquisition with the requirements of the RPF and RAPs to be prepared for project activities. The Bank task team will provide guidance in, and review, key environmental and social monitoring documents, such as ESMPs, RAPs, RAP Completion Reports, and quarterly progress reports and support PEC and BT in meeting its commitments set out in ESCP.

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10. MONITORING PLANS

The environmental and social issues included within the mitigation measures will monitored and supervised by the project beneficiaries, contractors and local specialists appointed by the Implementing Agency. Although the environmental and social impacts are expected to be moderate or low, the potential negative environmental and social impacts are planned to be prevented or mitigated during the construction and operation stages. Environmental and social monitoring system starts from the preparation phase of the subproject through the operation phase in order to prevent negative impacts of the project and observe the effectiveness of mitigation measures. This system helps the WB and the Client to evaluate the success of mitigation as part of project supervision and allows taking an action when needed. The monitoring system provides technical assistance and supervision when needed, early detection of conditions related to mitigation measures, follows up on mitigation results, and provides information of the project progress.

Environmental and social monitoring to be implemented by the Implementing Agency/PIU must provide information about key environmental and social aspects of the subprojects, particularly the project environmental and social impacts and the effectiveness of taken mitigation measures. Such information enables to evaluate the success of mitigation as part of project supervision and allows corrective action(s) to be implemented, when needed. In this regard the Monitoring Plan identifies monitoring objectives and specifies the type of monitoring, and their link to impacts and mitigation measures. Specifically, the monitoring section of the ESMP provides: (a) a specific description, and technical details, of monitoring measures, including the parameters to be measured, methods to be used, sampling locations, frequency of measurements; and, (b) monitoring and reporting procedures to: (i) ensure early detection of conditions that necessitate particular mitigation measures, and (ii) furnish information on the progress and results of mitigation. A Monitoring Plan Format is presented in the Part C of the ESMP Checklist enclosed in this document in Annex 7.

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11. ESA REPORTING RESPONSIBILITIES

ARIS E&S Officers will monitor all subprojects that it finances to ensure conformity to safeguard requirements during construction, operation and maintenance. They will ensure full compliance with the contract conditions and the ESMP. Final payment to the contractor should be contingent on the final inspection, with attention to the requirement to restore the site to its original condition upon completion of rehabilitation activities.

The environmental monitoring of the rehabilitation sites will include regular observations of soil and water and vegetation within and around the rehabilitation sites; the involvement of the environmental inspectors in monitoring and evaluation will help in developing systematic environmental monitoring on rehabilitated sites.

ARIS’s E&S Officers will visit to sub-project sites as and when necessary. Based on safeguard performance of different subprojects, they will advise on the subsequent disbursements that should be done for the contractors awarded a contract to implement subprojects under the RED. If it is found that there is an ESMF and/or ESF noncompliance, further disbursements will be stopped until ESF compliance is ensured. In addition, in the project areas the PIU will be responsible for the environmental and social monitoring activities identified above as part of the preventive actions and mitigation measures proposed to address potential adverse impacts. This monitoring will be incorporated into the overall project monitoring plan required by the World Bank as part of project performance. As part of its environmental and social monitoring activities, ARIS will conduct random inspections of project sites to determine the effectiveness of measures taken and the impacts of subproject activities on the surrounding environment. ARIS is also responsible for processing, addressing and monitoring complaints and other feedback, including that on environmental and social issues.

Also, ARIS will be responsible for ESMP reporting and will:

• Record and maintain the results of project supervision and monitoring throughout the life of the project. It will present summary progress reports on ESMF/ESMP implementation and the E&S aspects of subprojects on a semi-annual basis to the World Bank, and as part of this reporting, provide updates on any RED related as grievances/feedback that was received, that has been addressed and that may be pending. • Prepare quarterly reports on the progress of implementation of measures proposed by the ESMP for selected subprojects; • Prepare annual reports on the environmental impacts originated during implementation of subprojects and analyze the efficiency of mitigation measures applied to minimize negative consequences; • Prepare outlines and requirements for Contractors’ reports on environmental protection and mitigation measures, and review Contractor’s monitoring plan and reports; and, • Present the impact of mitigation and environmental and social protection measures for general public via specific publications or/and by annual public seminars.

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12. INSTITUTIONAL ARRANGEMENTS AND CAPACITY FOR ESMF IMPLEMENTATION

This section describes all involved actors in the ESMF implementation and an assessment of their capacities to perform their duties. Based on that it will be necessary to propose a set of concrete capacity building and strengthening of involved institutions to assess and control the environmental and social impacts of the potential types of subprojects for inspection and enforcement to comply with existing and proposed legislation and any other requirements needed to ensure fulfillment of the proposed environment monitoring at national and local level.

12.1 Project coordination

The Ministry of Economy (MoE) will be the project coordination Ministry responsible for overall project coordination (including with the President’s Office, Prime Minister’s Office, MoF and line ministries and departments). MoE will also overall manage the RED through its Regional Development Department, with the MoE Deputy Minister having overall responsibility for ensuring smooth and high-quality project implementation. MoE responsibilities will further include reviewing and endorsing annual work plans and budget (prepared by ARIS), providing relevant technical inputs, especially on a strategic and policy level or on issues related to economic promotion matters.

12.2 Project Implementation Unit

The Community Development and Investment Agency (or ARIS) will be the project implementation entity (PIE) responsible for: • all fiduciary (eg. procurement, financial management, preparation of annual reports, budgets etc.); and • safeguards (eg. assessments, document preparation and embedding safeguard specialists in local and regional gov to carry out supervision, monitoring and compliance) functions for the RED.

The ARIS is led by a Project Director and has staff capacity in procurement, financial management, and technical sectors. The PIU will hire also a Safeguards Specialist (SS) which will oversee overall coordination of individual ESMF and ESMPs implementation, reporting to Implementing Agency and to the WB regarding safeguards issues, as well as of integrating safeguards requirements into biding and contracting documents. He/she also will be responsible for interaction with the environmental authorities, local implementing agencies ensuring an efficient implementation of safeguards documents and will undertake, randomly, field visits and environmental and social supervision and monitoring, assessing environmental and social compliance at worksites, advising project municipalities on environmental and social safeguards issues. ARIS SS will be, also, responsible for identifying EA training needs for all parties involved in ESMF/ESMPs implementation.

In additional to a SS specialist based in Bishkek, one local Environmental and one Social Safeguards Specialists will be also hired in Osh city. They will have the main duties of ensuring that the project activities are implemented in compliance with the WB ESSs, site specific safeguards documents such as Environmental and Social Impacts Assessment (ESIA) studies and preparing the Environmental and Social Management Plans (ESMPs) and Resettlement Action Plans (RAPs) and following national ESA rules and procedures.

12.3 Beneficiaries and Contractors’ responsibilities

The actual investments will be carried out by contractors selected through the public tendering process. They should operate in full compliance with national environmental and social legislation and with the ESMPs requirements. Further, the contractors are obliged to follow regulative requirements of the national law related to traffic safety, occupational health and safety; fire safety; environmental protection; and community health and safety. All ESMPs’ associated activities will be financed by the contractors. The contractors will also be requested to designate a person in charge of environmental, social, health and safety issues and for implementing the ESMP. Similarly, in order to ensure an efficient implementation of the ESMPs, the subprojects’ beneficiaries, in most cases these are local municipalities, will also appoint

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responsible persons with the main tasks of supervising subproject implementation and reporting to the ARIS in case of any environmental or social non-compliance.

12.4 ESA capacity building activities

The implementation of the ESMF requires specific knowledge for all parties, including beneficiaries and operators that will be engaged in the different phases of the project implementation. Respectively, the project will support relevant trainings on knowledge and information on topics such as the ESMF implementation, ESMF/ESMP reporting, World Bank Guidelines, management of hazardous materials, etc. For this purpose, before the civil works will start, the Implementing Agency will hire a Consultant with knowledge on the environmental and social management requirements for Kyrgyz Republic, along with substantial knowledge on World Bank safeguards policies and requirements which will provide ESA training.

The training will include the basic requirements of the WB and National safeguards rules and procedures, as well as case studies in this regard. The training activities will continue also during the project implementation when the consultant will provide on the job training regarding environmental and social monitoring and supervision. The proposing the Project’s capacity building on environmental and social aspects will cover three main directions: i) PIU’s capacity on ESMF implementation during sub-projects selection process and sub-project construction stages – the hired Consultant will provide respective training for ARIS’s and ABCC’s staff and SS on WB ESS standards requirements, ESMF, ESMP and RAP preparation and further assistance in monitoring of the RAP and ESMP. The training could be conducted in Osh city. Other relevant staff members of PIU can participate at the training in order to widen familiarization of the ESMF. ii) Implementing Agency’s capacity as well as the Committee for Value Chain Sub-Project Selection and Small Grants Program Committee, - on overall environmental performance during the projects’ operation – the Consultant jointly with PIU’s SS will develop and conduct training program on general overview of WB safeguards ESS and national environmental and social requirements. The target of this training will be presentation of WB’s safeguards and national environmental requirements for different types (categories) of the projects and further needed actions. iii) Beneficiaries’ Capacity on development of ESIA, ESMP. Since the program will be implemented during several years and more sub-projects will be proposed for inclusion in the program, the Consultant will provide training for local agencies involved in preparation of EA report and conduction national EA. The training will be dedicated to harmonization of process of WB’s EISA and national EA. The target will be to educate EA developers and specialist from local environmental agencies to prepare the documents which meet WB safeguards standards as well.

A separate training on handling, collection and disposal of hazardous materials (asbestos materials) for ARIS’s SS and contractors will be provided by the Consultant before starting respective works. As per national requirements the contractors will have to conduct OH&S training for workers with indication in special logbook which will be kept on each construction site.

For the project sustainability it is important along with physical interventions, institutional improvements and financial enhancing, to increase people awareness on the project related topics, particularly waste management, water supply and sanitation aspects. It is proposed, that hired Consultant in collaboration with national NGOs and relevant agencies will develop awareness program which will cover three mentioned above topics and delivered to the target groups through seminars.

During construction and operation, Implementing Agency for Substantial and Moderate Risk subprojects, is also responsible for providing funding for installation and other activities to minimize any hazardous environmental impacts to be included in the subproject costs. The amount of required funding will depend on the technique/technologies used for implementing mitigation measures and their scale, number, variety and other factors.

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In order to ensure successful ESMF implementation, funding is also required to finance capacity building activities. Since it is difficult to prepare budget estimates for capacity building at this stage, this information will be included in the procurement plan. The tentative plan of capacity building and training plan is presented below.

Table 24. Tentative plan for capacity building and training program

Time and tentative Tentative Name of training duration of the Recipients Organizer cost training ARIS, Overview on WB ESSs on Committee for safeguards and their Value Chain During first year of implementation during the Sub-Project Project ARIS, 1 project cycle. National Selection and 3,000 USD implementation Consultant Environmental requirements for Small Grants Duration – 1 day project preparation and Program implementation Committee Local authorities Before sub-projects Implementation of ESMF, ARIS, 2 selection and approval ARIS’ SSs 3,000 USD ESMP, RPF and ARAP/RAP Consultant Duration - 2 days ARIS; Committee for 3,000 USD Value Chain each. Total Before project Sub-Project Development of ARIS, 9,000 for 4 implementation on the Selection and Gender Action and CE Plans Consultant two cities ground 2 days Small Grants and one Program oblast Committee Local authorities 3,000 USD ARIS SSs; each. Total OH&S, Handling and disposal Before starting ARIS, 5 Contractors; 9,000 two of hazardous materials respective works 1 day Consultant Local authorities cities and one oblast Continuously during General Public, Consultant, 6 Awareness program, the program Main 20,000 USD ARIS implementation stakeholders Continuously during ARIS’s SSs; Consultant the program Committee for implementation Value Chain 3,000 USD Sub-Project each. Total Selection and 7 Citizen Engagement Component 9,000 two Small Grants cities and Program one oblast Committee; Local Authorities Total 53,000 USD

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13. GRIEVANCE REDRESS MECHANISM

13.1 Introduction

In order to receive and facilitate the resolution of affected peoples’ concerns, complaints, and grievances about the project’s environmental performance an environmental GRM is proposed for the project. When and where the need arises, this mechanism will be used for addressing complaints that may arise during the implementation of project. The GRM addresses affected people's concerns and complaints promptly, using an understandable and transparent process that is gender responsive, culturally appropriate, and readily accessible to all segments of the affected people at no costs and without retribution. The mechanism is not impeding access to the KR judicial or administrative remedies. The project proponent will appropriately inform the affected people about the mechanism before the commencement of any civil works.

13.2 World Bank Grievance Redress System

Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank’s attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects- operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org.

13.3 Project GRM

ARIS uses the Beneficiary Feedback Mechanism (BFM) which is an information system for management of grievances put forward by the Program affected persons or any other person from the Program communities.

The main objective of the beneficiary feedback mechanism is obtaining prompt, objective information, evaluating and reviewing grievances (applications, proposals, complaints, requests, positive feedbacks), at all stages of program implementation. In addition, the BFM strengthens communication with program beneficiaries, provides channels for feedback, identifies and address issues and increases transparency and accountability.

The tools and approaches used for dissemination of information about the BFM are as follows: • presentation of information by the BFM specialists to local city and village authorities, AO, deputies of the local kenesh; • presentation of information at public hearings, trainings conducted by ARIS staff, the BFM team conducts an entire information campaign in the communities; • banners in district administrative buildings in cities and villages; • BFM section at the official program website.

All grievances and appeals received from citizens are delivered to the corporate system for further processing and follow-up.

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Channels for submitting grievances

1.Hotline: +996(550)70-05-22, (calls are 1. Grievances are recorded in the BMF logbook received around the clock, the conversation will be under incoming correspondence and are recorded); considered if the following information is present: 2. WhatsApp: +996(770)70-05-22, (instant • Full name; messaging system for mobile devices with voice • address of registration and residence or and video support); telephone number; 3. Social networks (Facebook МОС АРИС); • content of the grievance; 4. Web-site address: www.aris.kg. • other reference information. 5. Verbal or written grievance received during the on-site working meetings; If a grievance lacks any of the above data, it is 6. Incoming correspondence via courier to ARIS recorded in the logbook under incoming reception; correspondence of the BFM and the results of the 7. Incoming correspondence by e-mail: grievance will be published in the media at the [email protected] local level, on ARIS website or made public at the 8. CO ARIS tel.: +996 (312) 301805 (reception) session of the Village and City Keneshs (Councils). 9. CO ARIS address: 102 Bokonbayeva St., 2. Grievances are entered into the BFM Bishkek, Kyrgyz Republic configuration in the 1C system for analysis and monitoring. 3. Grievances may be submitted anonymously. Confidentiality shall be insured in all cases.

Receiving Grievances When receiving a grievance, the following points are determined:

• Type of grievance; • Category of the grievance; • Persons responsible for review and execution of the grievance; • Deadline for grievance resolving; • Agreed actions. After the type of action is determined, the BFM specialist registers details regarding the actions in the incoming correspondence journal, and then in the BFM configuration of the 1C system.

The applicant will receive a notification by the BFM specialist by phone or through other BFM channels: • Full name of the executor (Program officer) to whom the grievance was forwarded; • Deadline for execution (minimum 10 days, maximum 30 days from the registration date); • The deadline and actions are determined in accordance with the ARIS instructions for handling the grievance.

Notification. Notification will be registered in the outgoing correspondence logbook. The BFM specialist will assist the applicant at all stages of his grievance and ensure that his grievance is properly handled. In case the affected person is not satisfied with the decision resulting from the consideration of grievance, he / she has the right to appeal. Appeal claim is considered by the special ARIS Review Committee on consideration of appeals. ARIS Executive Director will form the Review Committee for consideration of appeals from Program managers and heads of departments, who will conduct hearings of appeal. The Appeals Review Committee will consist of 15-17 persons, of which, two are BFM members and two are persons independent from the Program implementation units and the Government of the Kyrgyz Republic. After review of the appeal, if the citizen / beneficiary is unsatisfied with the solution, he/she has the right to appeal the decision in a judicial procedure. General information on reported grievances (reference number, type of a grievance), their status and evolving problems will be included in regular Program reports submitted.

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14. ESMF DISCLOSURE AND PUBLIC CONSULTATIONS

14.1 ESMF disclosure

The environmental and social assessment process was done by involving all interested parties. The ESMF draft document in local language was published on Agency’s website (http://www.aris.kg/files/media/4/4722.pdf) on October 23, 2019 and with advertisement about planned public consultations. Moreover, information about the planning consultation was distributed through Osh oblast administration as well – municipalities. Furthermore, as part of information disclosure process a number of meetings have been conducted with involved parties, particularly, officials from district and city hakimiats, specialists of oblast and district level utilities (water supply companies, municipal solid waste treatment companies, municipal cities beatification department, land cadaster, architectural department, the Ministry of Culture, Information and Tourism and others. During the meeting the project team discussed with various experts planned activities under the project and introduced WB ESS requirements.

14.2 ESMF public consultation

The ESMF public consultation was held on November 6, 2019 in Osh city. Representatives from all districts of Osh oblast, participating towns, business unions, Osh and Uzgen cities departments on culture and architecture, state inspectorate on environmental and nature protection, and others are attended meetings (see list of participants in the Annex 17). In total, nearly 90 participants attended the meeting.

Brief information about the project, components, implementation agencies, ESMF was also presented in the meeting. During the public consultations, information about the project, anticipated environmental and social impacts, proposing mitigation measures, environmental and social assessment procedure were presented to the meetings’ participants. Proposed GRM was discussed as well.

During the meeting it was explained, that final version of ESMF, which has incorporated comments, received during PC will be re-published on Agency’s website and on WB external website. At the end the ARIS specialists shared their contact information for further comments, suggestions and clarifications on ESMF. The Summary of the raised issues and provided answers are presented in the Annex 18. Overall the document was largely accepted by all participants and no major comments to revise the document have been received.

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ANNEXES

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Annex 1. Types of economic activities subject to EIA according National legislation

1. Power engineering facilities: 1) central heating and power plants, heat power-stations, hydroelectric power stations; 2) industrial installations for production of electricity, steam and hot water; 3) gas-, oil-, oil products- and hot water pipelines; 4) high-voltage power transmission line; 5) warehouses for oil and oil products, gas and solid fuel; 6) ash dumps. 2. Reservoirs. 3. Enterprises engaged in extraction and processing of oil, oil products and gas. 4. Production of construction materials (cement, asphalt, asbestos sheeting, asbestos-cement pipes). 5. Farming: 1) farming intensification projects; 2) projects for land property management and reorganization; 3) projects for water resources management for farming purposes; 4) projects for land reclamation for changing the land use type; 5) poultry production units, intensive livestock units and fish farms; 6) land improvement projects. 6. Mining industry: 1) exploration and actual mining; 2) mineral output (carbonate of lime, basalt, salt, sand, gravel, clay, etc.); 3) coal miming; 4) ore mining; 5) ore treatment; 6) fabrication of base, rare and precious metals; 7) dispose and burial of waste, including hazardous and toxic waste. 7. Metal processing industry: 1) machine-building industry; 2) manufacturing of semiconducting materials; 3) air and railway transport repair services; 4) manufacturing of radio- and television equipment; 5) foundry and metal-rolling production. 8. Glass production. 9. Production of pharmaceutical drugs, biological and protein substances. 10. Chemical industry. 11. Food industry: 1) fats and oils production; 2) meat and dairy products production; 3) sugar production; 4) tobacco production; 5) wine, spirits production; 6) alcohol production; 7) brewing; 8) canned food production. 12. Textile, leather and paper making industry: 1) primary processing of leather and fur; 2) chipboard, board and fiberboard industries; 3) leather industry; 4) paper making industry; 5) dye industry; 6) manufacturing of industrial rubber. 13. Warehouses for toxic, hazardous and radioactive substances. 14. Waste water treatment facilities, stack gas cleaning facilities. 15. water intake systems for ground water. 16. water supply systems in residential areas, hydro land reclaiming systems. 113

17. Construction of motor-roads and railways. 18. Airports, fly ground, testing ground, inland ports, motordrome. 19. Construction of leisure and tourist facilities. 20. Arranging of industrial hub. 21. Waste water network. 22. Mountain lifts and ski passes. 23. Disposal, recycling and burial of industrial and consumer waste. 24. Refueling stations. 25. Motor vehicle service and presale preparation stations.

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Annex 2. Proposed list of investments and TA activities

1 Development of selected detailed designs 2 OSH: Craftsmen Street Revitalization (works) 3 OSH: Urban Regeneration of Osh City (roads, parks and other public spaces, pedestrian bridges across river, utilities, etc.) 4 Osh: Water Intake Facility Rehabilitation 5 Public-Private Cooperation (boosting investment by delivery of public infra for investment attraction) 6 Suleiman-Too: Arranging Tourism Infra by the Mosque and Fine Arts Museum 7 Suleiman-Too: Museum and Complex Upgrades 8 Suleiman-Too: Museum Exhibition Organization (inc. Goods) 9 Uzgen: Museum Exhibition and Goods 10 Uzgen: Museum Revitalization 11 Uzgen: Museum Site and Visitor Management Plan 12 Uzgen: Urban Regeneration of Uzgen City (roads, parks and other public spaces, utilities, etc.) 13 Abshir-Ata: Tourist Infra Upgrades (incl. goods and works) 14 Abshyr-Ata: Rehabilitation of the access road (15 km) 15 Arrangement of rest stops along the main circuits 16 Infra support for improved boarder crossing services at the border with Tajikistan and Uzbekistan 17 Kara-Shoro Park: Improvements and upgrades, as suggested by the site development plan (works and goods) 18 Kara-Shoro Park: Rehabilitation of the access road (10 km) 19 Kyrgyz-Ata: Rehabilitation of access road (11 km) 20 Kyrgyz-Ata: Tourism Infrastructure upgrades (including works and goods) 21 Rehabilitation of the access road to Tajik Boarder (25 km) 22 Abshir-Ata: Site development concept, detailed designs for the selected priority investments and site management plan 23 Capacity Building for Public and Private Sector in tourism services (including the use of technology) 24 Kara-Shoro Park: Capacity Building for the park management 25 Kara-Shoro Park: Development Concept and detained designs for selected investments 26 Kyrgyz-Ata: Development concept, detailed designs and management plan 27 OSH: Craftsmen Street Development concept and detailed designs for selected investments 28 OSH: Development concept and guidelines for Jaima Bazaar in Osh 29 Small Grants for Tourism enterprise start-ups 30 Suleiman-Too: Site and Visitor Management Plan 31 TA for Department of Tourism for improved monitoring and evaluation, marketing and promotion 32 TA for destination management in Osh (covering Uzgen) - Tourism marketing, promotion, media coverage and destination management 33 Osh oblast: Providing financing to agro-enterprises and with an emphasis on value chain (with a focus on include select fruit products (cherries, apricots, plums) and early season vegetables, as well as meat and dairy processing. 34 Osh oblast: Providing competitive matching grants targeting small scale producer or common interest groups adopting new technologies 35 Osh city: Upgrading the lab in Osh City with additional equipment and civil works for refurbishing of its facilities 36 Osh oblast: Upgrade border post lab infrastructure and civil works for office refurbishing.

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37 Osh city: Animal byproducts disposal and upgrading the animal waste disposal system in Osh city by purchasing incinerators 38 Osh oblast: Upgrading seed and breed multiplication facilities. 39 Osh city: TA for Capacity building for Osh technical agricultural college 40 TA for Training on business planning, financial literacy and management

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Annex 3. Screening of Risks Categories of Proposed Types of Subprojects

# PROJECT COMPONENTS WB KR Note Required AND ACTIVITIES action/type of ESA instrument Component 1: Strengthening Institutional capacity for regional development 1 1.1 Capacity building for Osh region and Ministries at the central level:

▪ Establishment and/or upgrading of LR - No civil works No actions after IT infrastructure/facilities; filling ESC

▪ Procurement of laboratory LR - Minor civil works ESMP Checklist equipment, reagents, field equipment, farm machineries and vehicles;

Human resource development, LR - No actions after including training (short and long filling ESC term), workshops, seminars, conferences and study tours 1.2. Promoting agriculture LR - No actions after export, business development filling ESC and entrepreneurship - – collection and processing of relevant information through website, extension service and awareness raising campaign

Extension centers; ▪ development of extension materials MR/LR and training of trainers in the - LR- if no civil works LR - No actions after extension centers; filling ESC; For MR –ESMP Checklist ▪ procurement of equipment, digital LR - LR- if no civil works No actions after tools, farm machinery, vehicles, filling ESC and demonstration materials, including inputs, field equipment, and audio-visual materials

Farm cooperatives and productive partnerships – ▪ TA for capacity building LR - No actions after filling ESC

TA for development business plan SR/MR 3/4 Integration of ESA requirements into TOR for conducting FS/Business Plan

1.4. Providing support to public and private sector for tourism development Extension centers; LR - No actions after ▪ development of extension materials filling ESC and training of trainers in the extension centers;

LR- if no civil works

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# PROJECT COMPONENTS WB KR Note Required AND ACTIVITIES action/type of ESA instrument ▪ procurement of equipment, digital LR - No actions after tools, farm machinery, vehicles, filling ESC and demonstration materials, including inputs, field equipment, and audio-visual materials ▪ -

Component 2: Supporting Rural Enterprise Growth 2.1 Strengthening agri-food supply chains and SMEs: ▪ Construction of logistics MR 4/3 3 – for centers with Category 3 - DSEI, infrastructure; refrigerators with SEC, Site specific capacity more than ESIA, ESMP 50 tn, 4- for less than Checklist 50tn Category 4 – DSEI, Site specific ESIA, ESMP Checklist

▪ Purchasing new logistics and other LR - No actions after equipment filling ESC

▪ Intensive orchards and greenhouses MR 4 DSEI, ESIA/ESMP

▪ Horticulture processing and storage facilities MR 4/3 3 – for facilities with For Category 3 – refrigerators with DSEI, SEC, ESMP capacity more than 50 tn, 4- for less than For Category 4 - 50tn DSEI, ESMP

▪ Adoption of climate-smart water- Overall risk is saving technologies for intensive SR/MR 4 moderate, but in SR - DSEI, ESIA, orchards and greenhouses some cases, it could ESMP be Substantial MR - DSEI, ESMP ▪ Intensive dairy and meat MR 4 DSEI, ESMP processing facilities ▪ Improving basic agricultural services and regulatory functions: MR 4 If construction will New area - DSEI, Rehabilitation of office, be implemented in Partial ESIA, ESMP laboratories and buildings new area – partial ESIA will be Existing area – DSEI, required ESMP Checklist

MR - ESMP Checklist ▪ rehabilitation/renovation (of existing), LR - No actions after ▪ refurbishment (of both new and filling ESC existing);

SPS investments: MR 4 DSEI, ESMP ▪ Construction of infrastructure Checklist (laboratory building and border inspection points) and equipment

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# PROJECT COMPONENTS WB KR Note Required AND ACTIVITIES action/type of ESA instrument for pest identification for the Central laboratory of SPQI and the border inspection points;

Capacity development for pest control to perform phytosanitary No actions after inspection, testing and certification LR - filling ESC actions regarding key exporting crops; Improved seed/breeding stock.

▪ Procurement of laboratory MR/LR - MR – if civil works MR - ESMP equipment, reagents, field will be needed for Checklist equipment, farm machineries and installation vehicles; equipment

Small Grants for tourism LR/MR MR in the case of ESMP Checklist for development – support SMEs small-scale MR grants through financial and technical construction assistance to improve their activities capacity, and the quality and diversification of services.

Component 3: Catalyzing investments for tourism and urban development 3.1 Upgrading Osh and Uzgen Urban Cores and Tourism Circuits: MR 4/3 Category 3 - DSEI, ▪ Construction infrastructure; SEC, Site specific ESIA, ESMP Checklist

Category 4 – DSEI, Site specific ESIA, ESMP Checklist

Purchasing new equipment LR - No actions after filling ESC

Basic infrastructure, services and LR - No Actions after ESC amenities for regional circuits – collection and processing of relevant information through website, extension service and awareness raising campaign

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Annex 4. Exclusion list27

The Exclusion List defines the types of projects that WB does not finance.

The WB does not finance the following projects:

• Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements, or subject to international bans, such as pharmaceuticals, pesticides/herbicides, ozone depleting substances, PCB's, wildlife or products regulated under CITES. • Production or trade in weapons and munitions. • Production or trade in alcoholic beverages (excluding beer and wine). • Production or trade in tobacco. • Gambling, casinos and equivalent enterprises. • Production or trade in radioactive materials. This does not apply to the purchase of medical equipment, quality control (measurement) equipment and any equipment where IFC considers the radioactive source to be trivial and/or adequately shielded. • Production or trade in unbonded asbestos fibers. This does not apply to purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20%. • Drift net fishing in the marine environment using nets in excess of 2.5 km. in length.

A reasonableness test will be applied when the activities of the project company would have a significant development impact, but circumstances of the country require adjustment to the Exclusion List.

27 Based on IFC Exclusion list. See; https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/company- resources/ifcexclusionlist#2007 120

Annex 5. Environmental Screening Checklist - Forms

Form 1

ENVIRONMENTAL SCREENING CHECKLIST

Part 1 (to be completed by Sub-project beneficiary)

1. Project Name:

2. Brief Description of sub-project to include: nature of the project, project cost, physical size, site area, location, property ownership, existence of on-going operations, plans for expansion or new construction.

3. Will the project have impacts on the environmental parameters listed below during the construction or operational phases? Indicate, with a check, during which phase impacts will occur and whether mitigation measures are required.

Construction Operational Mitigation Environmental Component Phase Phase Measures Terrestrial environment Land & soil degradation: Will the project involve land excavation? Generation of solid wastes, including toxic wastes? Soil and underground water pollution Air quality Will the project provide pollutant emissions? Aquatic environment Water Quantity: will the project involve water use? Water Quality / Pollution: Will the project contribute to surface water pollution Socio-economic environment Will the project assure non-deterioration of human health, occupational safety and non-disturbance of residents living near project area? Does the project require public consultation to consider local people environmental concerns and inputs? Social impacts

Subproject beneficiary

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ENVIRONMENTAL SCREENING CHECKLIST

Part 2 (to be completed by the ARIS based on the findings of the environmental screening process)

1. Sub-project Environmental Category (A, B or C) _____ (if project is categorized as A, no needs to fill next paras – sub-project could not be included into the project)

2. Is project activities will be implemented: a) in or near sensitive and valuable ecosystems — wetlands, wild lands, and habitat of endangered species - ____ (yes or no) b) in or near areas with archaeological and/or historical sites or existing cultural and social institutions - ____ (yes or no) c) in densely populated areas, where resettlement may be required or potential pollution impact and other disturbances may significantly affect communities - _(yes or no) d) in regions subject to heavy development activities or where there are conflicts in natural resource allocation; along watercourses, in aquifer recharge areas or in reservoir catchments used for potable water supply; and on lands or waters containing valuable resources (such as fisheries, minerals, medicinal plants, prime agricultural soils) - _(yes or no)

If any “yes” - the sub-project will be excluded from the Program

3 Environmental Assessment required (yes or no) _____ (the next paras must be filled only for category B sub-projects)

3. Types of required EA documents (circle round the required): a) partial ESIA, including site assessment and Environmental and Social Management Plan (ESMP) for Category B sub-projects; b) Environmental and Social Management Plan for small scale Category B sub-projects; c) ESMP checklists for small scale Category B sub-projects; d) Draft Environmental Impacts Statement (for categories 2-4 (Kyrgyz) sub-projects) e) Statement on Environmental Consequences (only for category 2-3 (Kyrgyz) sub-projects)

4. What environmental and social issues are raised by the sub-project? ______

10. If an environmental and social impact assessment is required, what are the specific issues to be addressed? ______

11. What is the time frame and estimated cost of conducting the ESIA? ______

Conclusion (could the sub-project be included in the program and if yes, under which conditions): ______

Environmental Screener: Date: ENVIRONMENTAL SCREENING CHECKLIST

Part 3 Final Environmental Assessment Checklist

(to be completed by the ARIS based on review of the mitigation proposed and the environmental impact 122

assessment (if required))

Was an Environmental and Social Impact Assessment needed? (Y or N) ___ If yes, was it done? ___

Was an Environmental and Social Management Plan prepared? (Y or N) ______

Are the mitigation measures to be included in project implementation adequate and appropriate? (Y or N) ______

Will the project comply with existing pollution control standards for emissions and wastes? (Y or N) _____ If No, will an exemption be sought? ______

Is an Environmental Monitoring Plan necessary? (Y or N) ___ If so, has it been prepared? (Y or N) ___ Approved by the PIU? ______

What follow-up actions are required by the proponent, the RPCU and PIU? ______

Were public consultations held concerning potential environmental impacts of the proposed sub-project? (Y or N) _____ Were minutes recorded? (Y or N) _____

Dates Participants ______

Project Officer: Date:

Environmental Screener: Date:

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ENVIRONMENTAL SCREENING CHECKLIST

Part 4. Final Environmental Assessment Checklist (2)

(to be completed by the ARIS based on review of the mitigation proposed and the environmental and social impact assessment (if required))

Is the project documentation complete? If not, what is missing?

Are land use and resource use permits required? If so, have they been received?

Are discharge permits required for solid waste? If so, have they been received?

Are discharge permits required for wastewater discharge? If so, have they been received?

Is there a sanitary inspection required? Has a permit been issued?

Has the environmental assessment been received and approved?

Is there potential for soil degradation or contamination? If yes, have appropriate prevention or mitigation measures been planned and budgeted?

Is there potential for water quality degradation or contamination? If yes, have appropriate prevention or mitigation measures been planned and budgeted?

Is there potential for air quality degradation or contamination? If yes, have appropriate prevention or mitigation measures been planned and budgeted?

Is there a threat to the biological environment? If yes, have appropriate prevention or mitigation measures been planned and budgeted?

Is there potential for adverse impacts on the social environment? If yes, are there necessary prevention, mitigation or compensation measures planned and budgeted?

Was the level of public involvement in design and planning and public consultation sufficient? Were public concerns raised in the consultation process adequately addressed?

What is the desired level, frequency and scope of environmental monitoring during the construction phase?

What is the desired level, frequency and scope of environmental monitoring during the operational phase?

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Form 2

Field site visit checklist

Project Name: Date/time of Visit: Rayon: Visitors:

Current activity and site history • Who is the site contact (name, position, contact information)? • What is the area of the site to be used for project activities? • What are current users of the site? • What were previous uses of the site (give dates if possible)? • Are there any encroachers or illegal users of the site whose livelihoods or assets are going to be affected by the project?

Environmental Situation • Are there sensitive sites nearby (nature reserves, cultural sites, historical landmarks)? • Are there water courses on the site? • What is the terrain or slope? • Does the site experience flooding, waterlogging or landslides? Are there signs of erosion? • What are the neighboring buildings (e.g. schools, dwellings, industries) and land uses? Estimate distances. • Will the proposed site affect transportation or public utilities?

Licenses, Permits and Clearances • Does the site require licenses or permits to operate the type of activity proposed? Are these available for inspection? • What environmental or other (e.g., health, forestry) authorities have jurisdiction over the site?

Water Quality Issues • Does the proposed activity use water for any purposes (give details and estimate quantity). What is the source? • Will the proposed activity produce any effluent? (estimate quantity and identify discharge point) • Is there a drainage system on site for surface waters or sewage? Is there a plan available of existing drainage or septic systems? • How waste water is managed (surface water courses, dry wells, septic tanks)?

Soils • What is the ground surface (agricultural land, pasture, etc.)? • Will the project damage soils during construction or operations? • Will the project affect the landscape significantly (draining wetlands, changing stream courses)

Biological environment • Describe vegetation cover on the site. • Is there information about rare or threatened flora and fauna at or near the site? If yes, would the project have an impact or increase risk to the species? • Obtain a list of vertebrate fauna and common plants of the site (if available). • Note potential negative impacts on biota if project proceeds.

Visual Inspection Procedures • Try to obtain a site map or make a sketch to mark details. • Take photos, if permitted. • Walk over as much of the site as possible, including boundaries, to note adjacent activities. • Note any odors, smoke or visual dust emissions, standing water, etc.

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Annex 6. Results of Environmental and Social Screening

Any subproject applications that includes activities that coincide with those included in the lists of excluded subprojects for financing and that which may have significant environmental risks will be disqualified. If the answer to one of the following questions is YES, the subproject application shall be excluded.

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Annex 7. Environmental and Social Impact Assessment Report Outline

Where an environmental and social impact assessment is prepared as part of the environmental and social assessment, it will include the following: (a) Executive Summary • Concisely discusses significant findings and recommended actions. (b) Legal and Institutional Framework • Analyzes the legal and institutional framework for the project, within which the environmental and social assessment is carried out, including the issues set out in ESS1, paragraph 26. • Compares the Borrower’s existing environmental and social framework and the ESSs and identifies the gaps between them. • Identifies and assesses the environmental and social requirements of any co-financiers. (c) Project Description • Concisely describes the proposed project and its geographic, environmental, social, and temporal context, including any offsite investments that may be required (e.g., dedicated pipelines, access roads, power supply, water supply, housing, and raw material and product storage facilities), as well as the project’s primary suppliers. • Through consideration of the details of the project, indicates the need for any plan to meet the requirements of ESS1 through 10. • Includes a map of sufficient detail, showing the project site and the area that may be affected by the project’s direct, indirect, and cumulative impacts. (d) Baseline Data • Sets out in detail the baseline data that is relevant to decisions about project location, design, operation, or mitigation measures. This should include a discussion of the accuracy, reliability, and sources of the data as well as information about dates surrounding project identification, planning and implementation. • Identifies and estimates the extent and quality of available data, key data gaps, and uncertainties associated with predictions. • Based on current information, assesses the scope of the area to be studied and describes relevant physical, biological, and socioeconomic conditions, including any changes anticipated before the project commences. • Takes into account current and proposed development activities within the project area but not directly connected to the project. (e) Environmental and Social Risks and Impacts • Takes into account all relevant environmental and social risks and impacts of the project. This will include the environmental and social risks and impacts specifically identified in ESS2–8, and any other environmental and social risks and impacts arising as a consequence of the specific nature and context of the project, including the risks and impacts identified in ESS1, paragraph 28. (f) Mitigation Measures • Identifies mitigation measures and significant residual negative impacts that cannot be mitigated and, to the extent possible, assesses the acceptability of those residual negative impacts. • Identifies differentiated measures so that adverse impacts do not fall disproportionately on the disadvantaged or vulnerable. • Assesses the feasibility of mitigating the environmental and social impacts; the capital and recurrent costs of proposed mitigation measures, and their suitability under local conditions; and the institutional, training, and monitoring requirements for the proposed mitigation measures. • Specifies issues that do not require further attention, providing the basis for this determination. (g) Analysis of Alternatives • Systematically compares feasible alternatives to the proposed project site, technology, design, and operation—including the “without project” situation—in terms of their potential environmental and social impacts. • Assesses the alternatives’ feasibility of mitigating the environmental and social impacts; the capital and recurrent costs of alternative mitigation measures, and their suitability under local conditions; and the institutional, training, and monitoring requirements for the alternative mitigation measures. • For each of the alternatives, quantifies the environmental and social impacts to the extent possible, and attaches economic values where feasible. 127

(h) Design Measures • Sets out the basis for selecting the particular project design proposed and specifies the applicable EHSGs or if the ESHGs are determined to be inapplicable, justifies recommended emission levels and approaches to pollution prevention and abatement that are consistent with GIIP. (i) Key Measures and Actions for the Environmental and Social Commitment Plan (ESCP) • Summarizes key measures and actions and the timeframe required for the project to meet the requirements of the ESSs. This will be used in developing the Environmental and Social Commitment Plan (ESCP). (j) Appendices • List of the individuals or organizations that prepared or contributed to the environmental and social assessment. • References—setting out the written materials both published and unpublished, that have been used. • Record of meetings, consultations and surveys with stakeholders, including those with affected people and other interested parties. The record specifies the means of such stakeholder engagement that were used to obtain the views of affected people and other interested parties. • Tables presenting the relevant data referred to or summarized in the main text. • List of associated reports or plans.

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Annex 8. Indicative outline of ESMP

An ESMP consists of the set of mitigation, monitoring, and institutional measures to be taken during implementation and operation of a project to eliminate adverse environmental and social risks and impacts, offset them, or reduce them to acceptable levels. The ESMP also includes the measures and actions needed to implement these measures. The Borrower will (a) identify the set of responses to potentially adverse impacts; (b) determine requirements for ensuring that those responses are made effectively and in a timely manner; and (c) describe the means for meeting those requirements. Depending on the project, an ESMP may be prepared as a stand-alone document or the content may be incorporated directly into the ESCP. The content of the ESMP will include the following:

(a) Mitigation • The ESMP identifies measures and actions in accordance with the mitigation hierarchy that reduce potentially adverse environmental and social impacts to acceptable levels. The plan will include compensatory measures, if applicable. Specifically, the ESMP: (i) identifies and summarizes all anticipated adverse environmental and social impacts (including those involving indigenous people or involuntary resettlement); (ii) describes—with technical details—each mitigation measure, including the type of impact to which it relates and the conditions under which it is required (e.g., continuously or in the event of (iii) contingencies), together with designs, equipment descriptions, and operating procedures, as appropriate; (iv) This may be particularly relevant where the Borrower is engaging contractors, and the ESMP sets out the requirements to be followed by contractors. In this case the ESMP should be incorporated as part of the contract between the Borrower and the contractor, together with appropriate monitoring and enforcement provisions. (v) estimates any potential environmental and social impacts of these measures; and (vi) takes into account, and is consistent with, other mitigation plans required for the project (e.g., for involuntary resettlement, indigenous peoples, or cultural heritage). (b) Monitoring • The ESMP identifies monitoring objectives and specifies the type of monitoring, with linkages to the impacts assessed in the environmental and social assessment and the mitigation measures described in the ESMP. Specifically, the monitoring section of the ESMP provides (a) a specific description, and technical details, of monitoring measures, including the parameters to be measured, methods to be used, sampling locations, frequency of measurements, detection limits (where appropriate), and definition of thresholds that will signal the need for corrective actions; and (b) monitoring and reporting procedures to (i) ensure early detection of conditions that necessitate particular mitigation measures, and (ii) furnish information on the progress and results of mitigation. (c) Capacity Development and Training • To support timely and effective implementation of environmental and social project components and mitigation measures, the ESMP draws on the environmental and social assessment of the existence, role, and capability of responsible parties on site or at the agency and ministry level. • Specifically, the ESMP provides a specific description of institutional arrangements, identifying which party is responsible for carrying out the mitigation and monitoring measures (e.g., for operation, supervision, enforcement, monitoring of implementation, remedial action, financing, reporting, and staff training). • To strengthen environmental and social management capability in the agencies responsible for implementation, the ESMP recommends the establishment or expansion of the parties responsible, the training of staff and any additional measures that may be necessary to support implementation of mitigation measures and any other recommendations of the environmental and social assessment. (d) Implementation Schedule and Cost Estimates • For all three aspects (mitigation, monitoring, and capacity development), the ESMP provides (a) an implementation schedule for measures that must be carried out as part of the project, showing phasing and coordination with overall project implementation plans; and (b) the capital and recurrent cost estimates and sources of funds for implementing the ESMP. These figures are also integrated into the total project cost tables. 129

(e) Integration of ESMP with Project • The Borrower’s decision to proceed with a project, and the Bank’s decision to support it, are predicated in part on the expectation that the ESMP (either stand alone or as incorporated into the ESCP) will be executed effectively. Consequently, each of the measures and actions to be implemented will be clearly specified, including the individual mitigation and monitoring measures and actions and the institutional responsibilities relating to each, and the costs of so doing will be integrated into the project’s overall planning, design, budget, and implementation.

(v) A list of associated reports such as resettlement plans or social assessments that were prepared for the project.

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Annex 9. Environmental Management Plan Checklist (for small scale construction/rehabilitation sub-projects)

General Guidelines for use of ESMP checklist:

For low-risk construction projects, such as minor roads rehabilitation works or the construction of bicycle paths, the ECA (Europe and Central Asia) safeguards team developed an alternative ESMP (environmental and social management plan) format to provide an opportunity for a more streamlined approach to mainstreaming the World Bank’s environmental safeguards requirements into projects which (a) are small in scale or by the nature of the planned activities have a low potential environmental impact, (b) are located in countries with well-functioning country systems for environmental assessment and management. The checklist-type format has been developed to ensure that basic good practice measures are recognized and implemented, while designed to be both user friendly and compatible with the World Bank’s safeguards requirements.

The ESMP checklist-type format attempts to cover typical key mitigation measures to civil works contracts with small, localized impacts or of a simple, low risk nature. This format provides the key elements of an ESMP to meet the minimum World Bank Environmental Assessment requirements for Category B projects under OP 4.01. The intention of this checklist is that it offers practical, concrete and implementable guidance to Contractors and supervising Engineers for simple civil works contracts. It should be completed during the final design phase and, either freestanding or in combination with any environmental documentation produced under national law (e.g. ESIA reports), constitute an integral part of the bidding documents and eventually the works contracts.

The checklist ESMP has the following sections:

Part 1 includes a descriptive part that characterizes the project, specifies institutional and regulatory aspects, describes technical project content, outlines any potential need for capacity building and briefly characterizes the public consultation process. This section should indicatively be up to two pages long. Attachments for additional information may be supplemented as needed. Part 2 includes a screening checklist of potential environmental and social impacts, where activities and potential environmental issues can be checked in a simple Yes/No format. If any given activity/issue is triggered by checking “yes”, a reference to the appropriate section in the table in the subsequent Part 3 can be followed, which contains clearly formulated environmental and social management and mitigation measures. Part 3 represents the environmental mitigation plan to follow up proper implementation of the measures triggered under Part 2. It has the same format as required for MPs produced under standard safeguards requirements for Category B projects. Part 4 contains a simple monitoring plan to enable both the Contractor as well as authorities and the World Bank specialists to monitoring due implementation of environmental management and protection measures and detect deviations and shortcomings in a timely manner.

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Part 1. Project Information

INSTITUTIONAL & ADMINISTRATIVE ARRANGEMENTS Country Project title Scope of project and activity Institutional arrangements WB Project Management Local Counterpart and/or Recipient (names and contacts) (Project Team Leader)

Implementation Safeguard Local Counterpart Supervision Local Inspectorate Contactor arrangements Supervision Supervision (Name and contacts)

SITE DESCRIPTION Name of site Describe site location Attachment1: Site Map [ ]Y / [ ]N Who owns the land? Geographic description LEGISLATION Identify national & local legislation & permits that apply to project activity PUBLIC CONSULTATION Identify when / where the public consultation process took place INSTITUTIONAL CAPACITY BUILDING Will there be any capacity [ ], if Yes, Attachment 2 includes the capacity building program building? (Yes/No)

Beneficiary: Signature: Date:

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ENVIRONMENTAL /SOCIAL SCREENING Will the site activity Activity Status Additional references include/involve any of theA. Building rehabilitation [ ] Yes [ ] No See Section B below following: B. New construction [ ] Yes [ ] No See Section B below C. Individual wastewater treatment system [ ] Yes [ ] No See Section C below D. Historic building(s) and districts [ ] Yes [ ] No See Section D below E. Acquisition of land28 [ ] Yes [ ] No See Section E below F. Hazardous or toxic materials29 [ ] Yes [ ] No See Section F below G. Impacts on forests and/or protected areas [ ] Yes [ ] No See Section G below H. Handling / management of medical waste [ ] Yes [ ] No See Section H below I. Traffic and Pedestrian Safety [ ] Yes [ ] No See Section I below

ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST A. General Conditions Notification and Worker Safety (a) The local construction and environment inspectorates and communities have been notified of upcoming activities (b) The public has been notified of the works through appropriate notification in the media and/or at publicly accessible sites (including the site of the works) (c) All legally required permits have been acquired for construction and/or rehabilitation (d) All work will be carried out in a safe and disciplined manner designed to minimize impacts on neighboring residents and environment. (e) Workers will comply with international good practice (always hardhats, as needed masks and safety glasses, harnesses and safety boots) (f) Appropriate signposting of the sites will inform workers of key rules and regulations to follow. B. General Rehabilitation Air Quality (a) During interior demolition use debris-chutes above the first floor and /or Construction (b) Keep demolition debris in controlled area and spray with water mist to reduce debris dust Activities (c) Suppress dust during pneumatic drilling/wall destruction by ongoing water spraying and/or installing dust screen enclosures at site (d) Keep surrounding environment (side-walks, roads) free of debris to minimize dust (e) There will be no open burning of construction / waste material at the site (f) There will be no excessive idling of construction vehicles at sites Noise (a) Construction noise will be limited to restricted times agreed to in the permit (b) During operations the engine covers of generators, air compressors and other powered mechanical equipment should be closed, and equipment placed as far away from residential areas as possible Water Quality (a) The site will establish appropriate erosion and sediment control measures such as e.g. hay bales and / or silt

28 The project will support construction of new buildings only in the case when land acquisition is not necessary and there are no any resettlement issues; for such cases the investor should have the landownership title as well as has to prove the land at the moment of sub-projects application is not occupied or used even illegally 29 Toxic / hazardous material includes and is not limited to asbestos, toxic paints, removal of lead paint, etc.

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ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST fences to prevent sediment from moving off site and causing excessive turbidity in nearby streams and rivers. Waste management (a) Waste collection and disposal pathways and sites will be identified for all major waste types expected from demolition and construction activities. (b) Mineral construction and demolition wastes will be separated from general refuse, organic, liquid and chemical wastes by on-site sorting and stored in appropriate containers. (c) Construction waste will be collected and disposed properly by licensed collectors (d) The records of waste disposal will be maintained as proof for proper management as designed. (e) Whenever feasible the contractor will reuse and recycle appropriate and viable materials (except asbestos) C. Individual wastewater Water Quality (a) The approach to handling sanitary wastes and wastewater from building sites (installation or reconstruction) treatment system must be approved by the local authorities (b) Before being discharged into receiving waters, effluents from individual wastewater systems must be treated in order to meet the minimal quality criteria set out by national guidelines on effluent quality and wastewater treatment (c) Monitoring of new wastewater systems (before/after) will be carried out D. Historic building(s) Cultural Heritage (a) If the building is a designated historic structure, very close to such a structure, or located in a designated historic district, notify and obtain approval/permits from local authorities and address all construction activities in line with local and national legislation (b) Ensure that provisions are put in place so that artifacts or other possible “chance finds” encountered in excavation or construction are noted, officials contacted, and works activities delayed or modified to account for such finds. E. Acquisition of land Land Acquisition Plan/Framework (a) If expropriation of land was not expected and is required, or if loss of access to income or damage to assets of legal or illegal users of land was not expected but may occur, that the bank Task Team Leader is consulted. (b) The approved by the Bank Land Acquisition Plan (if required by the project) will be implemented prior to start of project works. F. Social Risk Public relationship management (a) Assign local liaison person who is in charge of communication with and receiving requests / Management complaints from local population. (b) Consult local communities to identify and proactively manage potential conflicts between an external workforce and local people. (c) Raise local community awareness about sexually transmitted disease risks associated with the presence of an external workforce and include local communities in awareness activities. (d) Scheduled works beyond irrigation season to the extent possible in order to avoid/minimize service disruption. Inform local population about construction and work schedules, interruption of services, traffic detour routes and provisional bus routes, blasting and demolition, as appropriate. (e) Limit construction activities at night. When necessary, carefully schedule night work and inform affected community beforehand. (f) Properly mark and fence work site (g) No temporary storage of construction materials and waste occurs within cultivated land plots or any type of private property

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ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST (a) Allocate areas for temporary storage of construction materials and waste so that free movement of traffic and pedestrians is not hindered Labor management (a) To the extent possible, do not locate work camps in close proximity to local communities. (b) Locate and operate workers’ camps in consultation with neighboring communities. (c) Recruit unskilled or semi-skilled workers from local communities to the extent possible. Where and when feasible, worker skills training, should be provided to enhance participation of local people. (d) Provide adequate lavatory facilities (toilets and washing areas) in the work site with adequate supplies of hot and cold running water, soap, and hand drying devices. Establish a temporary septic tank system for any residential labor camp without causing pollution of nearby watercourses. (b) Raise awareness of workers on overall relationship management with local population, establish the code of conduct in line with international practice and strictly enforce them, including the dismissal of workers and financial penalties of adequate scale. G. Toxic Materials Asbestos management (c) If asbestos is located on the project site, mark clearly as hazardous material (d) When possible, the asbestos will be appropriately contained and sealed to minimize exposure (e) The asbestos prior to removal (if removal is necessary) will be treated with a wetting agent to minimize asbestos dust (f) Asbestos will be handled and disposed by skilled & experienced professionals (g) If asbestos material is be stored temporarily, the wastes should be securely enclosed inside closed containments and marked appropriately (h) The removed asbestos will not be reused Toxic / hazardous waste management (a) Temporarily storage on site of all hazardous or toxic substances will be in safe containers labeled with details of composition, properties and handling information (b) The containers of hazardous substances should be placed in an leak-proof container to prevent spillage and leaching (c) The wastes are transported by specially licensed carriers and disposed in a licensed facility. (d) Paints with toxic ingredients or solvents or lead-based paints will not be used H. Affects forests and/or Protection (a) All recognized natural habitats and protected areas in the immediate vicinity of the activity will not be protected areas damaged or exploited, all staff will be strictly prohibited from hunting, foraging, logging or other damaging activities. (b) For large trees in the vicinity of the activity, mark and cordon off with a fence large tress and protect root system and avoid any damage to the trees (c) Adjacent wetlands and streams will be protected, from construction site run-off, with appropriate erosion and sediment control feature to include by not limited to hay bales, silt fences (d) There will be no unlicensed borrow pits, quarries or waste dumps in adjacent areas, especially not in protected areas.

Environmental Monitoring Plan (Example)

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When Cost What Where How Why Who (Define the (if not included Phase (Is the parameter to be (Is the parameter (Is the parameter to (Is the parameter (Is responsible for frequency / or in project monitored?) to be monitored?) be monitored?) being monitored?) monitoring?) continuous?) budget) site access at the site check if design and before launch of safety of general marginal, within Contractor, traffic management project planning construction public, budget Engineer foresee diligent availability of waste at the site procedures timely detection of disposal facilities waste disposal During activity bottlenecks preparation hazardous waste inventory in site vicinity visual / analytical if before start of marginal, within (asbestos) on site in doubt rehabilitation budget; works before public and (prepare special construction material Contractor’s visual / research in approval to use workplace health account for quality control (eg. paints / store / building toxic materials materials and safety analyses at PIU) solvents) yard databases dust generation on site and in Visual daily avoidance of public marginal, within Contractor, immediate nuisance budget Engineer noise emissions neighborhood, consultation of locals daily close to potential impacted residents During activity waste and wastewater visual, analytical if daily / continuous avoidance of supervision types, quality and volumes at discharge suspicious count of negative impacts on points or in waste transports off ground/ surface surface drainage soundness storage facilities site, check flow rates waters and runoff routes for daily / continuous ensuring proper wastewater waste management and disposal

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Annex 10. Environmental and Social Management Plan (ESMP) Checklist for small scale road rehabilitation projects

General Guidelines for use of ESMP checklist:

The checklist ESMP has the following sections:

Part 2 includes a screening checklist of potential environmental and social impacts, where activities and potential environmental issues can be checked in a simple Yes/No format. If any given activity/issue is triggered by checking “yes”, a reference to the appropriate section in the table in the subsequent Part 3 can be followed, which contains clearly formulated environmental and social management and mitigation measures.

Part 3 represents the environmental mitigation plan to follow up proper implementation of the measures triggered under Part 2. It has the same format as required for MPs produced under standard safeguards requirements for Category B projects.

Part 4 contains a simple monitoring plan to enable both the Contractor as well as authorities and the World Bank specialists to monitoring due implementation of environmental management and protection measures and detect deviations and shortcomings in a timely manner.

Part 2 and 3 have been structured in a way to provide concrete and enforceable environmental and social measures, which are understandable to non-specialists (such as Contractor’s site managers) and are easy to check and enforce. The ESMP should be included in the BoQ (bill of quantities) and the implementation priced by the bidders. Part 4 has also been designed intentionally simple to enable monitoring of key parameters with simple means and non-specialist staff.

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The Checklist ESMP will be completed separately for each individual investment, based on site-specific conditions.

CONTENTS

1. General Project and Site Information

2. Safeguards Information

3. Mitigation Measures

4. Monitoring Plan

PART 1: GENERAL PROJECT AND SITE INFORMATION

INSTITUTIONAL & ADMINISTRATIVE Country Project title Scope of project and activity Institutional WB Project Local Counterpart and/or Recipient arrangements (Project Team Management (Name and contacts) Leader)

Implementation Safeguard Local Counterpart Local Contactor arrangements Supervision Supervision Inspectorate (Name and contacts) Supervision

SITE DESCRIPTION Name of site Describe site location Attachment 1: Site Map [ ]Y [ ] N Who owns the land? Description of geographic, physical, biological, geological, hydrographic and socio- economic context Locations and distance for material sourcing, especially aggregates, water, stones? LEGISLATION Identify national & local legislation & permits that apply to project activity PUBLIC CONSULTATION

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Identify when / where the public consultation process took place INSTITUTIONAL CAPACITY BUILDING Will there be any [ ] N or [ ]Y if Yes, Attachment 2 includes the capacity building program capacity building?

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PART 2: SAFEGUARDS SCREENING AND TRIGGERS

ENVIRONMENTAL /SOCIAL SCREENING FOR SAFEGUARDS TRIGGERS Activity/Issue Status Triggered Actions J. Roads rehabilitation [ ] Yes [ ] No If “Yes”, see Section A below K. New construction of small traffic infrastructure [ ] Yes [ ] No If “Yes”, see Section A below Will the site L. Impacts on surface drainage system [ ] Yes [ ] No If “Yes”, see Section B below activity M. Historic building(s) and districts [ ] Yes [ ] No If “Yes”, see Section C below include/involve 30 any of theN. Acquisition of land [ ] Yes [ ] No If “Yes”, see Section D below 31 following?? O. Hazardous or toxic materials [ ] Yes [ ] No If “Yes”, see Section E below P. Impacts on forests and/or protected areas [ ] Yes [ ] No If “Yes”, see Section F below Q. Risk of unexploded ordinance (UXO) [ ] Yes [ ] No If “Yes”, see Section G below R. Traffic and Pedestrian Safety [ ] Yes [ ] No If “Yes”, see Section H below

30 Land acquisitions includes displacement of people, change of livelihood encroachment on private property this is to land that is purchased/transferred and affects people who are living and/or squatters and/or operate a business (kiosks) on land that is being acquired. 31 Toxic / hazardous material includes but is not limited to asbestos, toxic paints, noxious solvents, removal of lead paint, etc.

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PART 3: MITIGATION MEASURES ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST 0. General Conditions Notification and Worker (g) The local construction and environment inspectorates and communities have been notified of Safety upcoming activities (h) The public has been notified of the works through appropriate notification in the media and/or at publicly accessible sites (including the site of the works) (i) All legally required permits have been acquired for construction and/or rehabilitation (j) The Contractor formally agrees that all work will be carried out in a safe and disciplined manner designed to minimize impacts on neighboring residents and environment. (k) Workers’ PPE will comply with international good practice (always hardhats, as needed masks and safety glasses, harnesses and safety boots) (l) Appropriate signposting of the sites will inform workers of key rules and regulations to follow. A. General Air Quality (g) During excavation works dust control measures shall be employed, e.g. by spraying and moistening Rehabilitation and /or the ground Construction Activities (h) Demolition debris, excavated soil and aggregates shall be kept in controlled area and sprayed with water mist to reduce debris dust (i) During pneumatic drilling or breaking of pavement and foundations dust shall be suppressed by ongoing water spraying and/or installing dust screen enclosures at site (j) The surrounding environment (side-walks, roads) shall be kept free of soil and debris to minimize dust (k) There will be no open burning of construction / waste material at the site (l) All machinery will comply with Polish emission regulations, shall well maintained and serviced and there will be no excessive idling of construction vehicles at sites Noise (c) Construction noise will be limited to restricted times agreed to in the permit (d) During operations the engine covers of generators, air compressors and other powered mechanical equipment shall be closed, and equipment placed as far away from residential areas as possible Water Quality (b) The site will establish appropriate erosion and sediment control measures such as e.g. hay bales and / or silt fences to prevent sediment from moving off site and causing excessive turbidity in canalization and nearby streams and rivers Waste management (f) Waste collection and disposal pathways and sites will be identified for all major waste types expected from excavation, demolition and construction activities. (g) Mineral construction and demolition wastes will be separated from general refuse, organic, liquid and chemical wastes by on-site sorting and stored in appropriate containers. (h) Construction waste will be collected and disposed properly by licensed collectors (i) The records of waste disposal will be maintained as proof for proper management as designed. (j) Whenever feasible Contractor will reuse and recycle appropriate and viable materials (except when containing asbestos)

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B. Impacts on surface Water Quality (d) There will be no unregulated extraction of groundwater, nor uncontrolled discharge of process drainage system waters, cement slurries, or any other contaminated waters into the ground or adjacent streams or rivers; the Contractor will obtain all necessary licenses and permits for water extraction and regulated discharge into the public wastewater system. (e) There will be proper storm water drainage systems installed and care taken not to silt, pollute, block or otherwise negatively impact natural streams, rivers, ponds and lakes by construction activities (f) There will be procedures for prevention of and response to accidental spills of fuels, lubricants and other toxic or noxious substances (g) Construction vehicles and machinery will be washed only in designated areas where runoff will not pollute natural surface water bodies C. Historic building(s) Cultural Heritage (c) If construction works take place close to a designated historic structure, or are located in a designated historic district, notification shall be made and approvals/permits be obtained from local authorities and all construction activities planned and carried out in line with local and national legislation. (d) It shall be ensured that provisions are put in place so that artifacts or other possible “chance finds” encountered in excavation or construction are noted and registered, responsible officials contacted, and works activities delayed or modified to account for such finds. D. Acquisition of land Land Acquisition (e) If expropriation of land was not expected but is required, or if loss of access to income of legal or Plan/Framework illegal users of land was not expected but may occur, that the Bank’s Task Team Leader shall be immediately consulted. (f) The approved Land Acquisition Plan/Framework (if required by the project) will be implemented E. Social Risk Public relationship (h) Assign local liaison person who is in charge of communication with and receiving requests / Management management complaints from local population. (i) Consult local communities to identify and proactively manage potential conflicts between an external workforce and local people. (j) Raise local community awareness about sexually transmitted disease risks associated with the presence of an external workforce and include local communities in awareness activities. (k) Scheduled works beyond irrigation season to the extent possible in order to avoid/minimize service disruption. Inform local population about construction and work schedules, interruption of services, traffic detour routes and provisional bus routes, blasting and demolition, as appropriate. (l) Limit construction activities at night. When necessary, carefully schedule night work and inform affected community beforehand. (m) Properly mark and fence work site (n) No temporary storage of construction materials and waste occurs within cultivated land plots or any type of private property Allocate areas for temporary storage of construction materials and waste so that free movement of traffic and pedestrians is not hindered Labor management (e) To the extent possible, do not locate work camps in close proximity to local communities.

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(f) Locate and operate workers’ camps in consultation with neighboring communities. (g) Recruit unskilled or semi-skilled workers from local communities to the extent possible. Where and when feasible, worker skills training, should be provided to enhance participation of local people. (h) Provide adequate lavatory facilities (toilets and washing areas) in the work site with adequate supplies of hot and cold running water, soap, and hand drying devices. Establish a temporary septic tank system for any residential labor camp without causing pollution of nearby watercourses. Raise awareness of workers on overall relationship management with local population, establish the code of conduct in line with international practice and strictly enforce them, including the dismissal of workers and financial penalties of adequate scale. F. Toxic materials Asbestos management (i) If asbestos is located on the project site, it shall be marked clearly as hazardous material (j) When possible, the asbestos will be appropriately contained and sealed to minimize exposure (k) The asbestos prior to removal (if removal is necessary) will be treated with a wetting agent to minimize asbestos dust (l) Asbestos will be handled and disposed by skilled & experienced professionals (m) If asbestos material is be stored temporarily, the wastes should be securely enclosed inside closed containments and marked appropriately. Security measures will be taken against unauthorized removal from the site. (n) The removed asbestos will not be reused Toxic / hazardous waste (e) Temporarily storage on site of all hazardous or toxic substances will be in safe containers labeled management with details of composition, properties and handling information (f) The containers of hazardous substances shall be placed in an leak-proof container to prevent spillage (g) The wastes shall be transported by specially licensed carriers and disposed in a licensed facility. (h) Paints with toxic ingredients or solvents or lead-based paints will not be used G. Affected forests, Ecosystem protection (e) All recognized natural habitats, wetlands and protected areas in the immediate vicinity of the wetlands and/or activity will not be damaged or exploited, all staff will be strictly prohibited from hunting, foraging, protected areas logging or other damaging activities. (f) A survey and an inventory shall be made of large trees in the vicinity of the construction activity, large trees shall be marked and cordoned off with fencing, their root system protected, and any damage to the trees avoided (g) Adjacent wetlands and streams shall be protected from construction site run-off with appropriate erosion and sediment control feature to include by not limited to hay bales and silt fences (h) There will be no unlicensed borrow pits, quarries or waste dumps in adjacent areas, especially not in protected areas. H. Risk of unexploded Hazard to human health (a) Before start of any excavation works the Contractor will verify that the construction area has been ordinance (UXO) and safety checked and cleared regarding UXO by the appropriate authorities I Traffic and pedestrian Direct or indirect hazards (b) In compliance with national regulations the Contractor will ensure that the construction site is safety to public traffic and properly secured and construction related traffic regulated. This includes but is not limited to

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pedestrians by • Signposting, warning signs, barriers and traffic diversions: site will be clearly visible and the construction public warned of all potential hazards activities • Traffic management system and staff training, especially for site access and near-site heavy traffic. Provision of safe passages and crossings for pedestrians where construction traffic interferes. • Adjustment of working hours to local traffic patterns, e.g. avoiding major transport activities during rush hours or times of livestock movement • If required, active traffic management by trained and visible staff at the site for safe passage for the public • Ensuring safe and continuous access to all adjacent office facilities, shops and residences during construction

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PART 4: MONITORING PLAN (EXEMPLARY, TO BE EXPANDED AS NEEDED)

Who How When Cost What Where Why (Is (Is the parameter (Define the (if not included Phase (Is the parameter to (Is the parameter to (Is the parameter responsible to be frequency / or in project be monitored?) be monitored?) being monitored?) for monitored?) continuous?) budget) monitoring?) site access at the site check if design before launch of safety of general marginal, within Contractor, traffic management and project construction public, budget Engineer planning foresee availability of waste at the site diligent timely detection disposal facilities procedures of waste disposal bottlenecks During hazardous waste in site vicinity before start of marginal, within activity inventory (asbestos) on site visual / rehabilitation budget; preparation analytical if in works public and (prepare special construction material Contractor’s store / doubt before approval workplace health account for quality control (eg. building yard to use materials and safety analyses at PIU) paints / solvents) visual / research in toxic materials databases dust generation on site and in visual daily avoidance of marginal, within Contractor, immediate consultation of public nuisance budget Engineer noise emissions neighborhood, close locals daily to potential impacted residents

During waste and wastewater at discharge points visual, analytical daily / continuous avoidance of activity types, quality and or in storage if suspicious negative impacts supervision volumes facilities count of waste on ground/ transports off surface waters surface drainage site, check flow daily / continuous ensuring proper soundness rates and runoff waste routes for management and wastewater disposal

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Annex 11. Impacts, Causes, Consequences and Mitigation measures for sub-projects in Agriculture Production Sector32

9-1 Mammalian livestock production* 9-2 Poultry production* 9-3 Annual crop production & plantation crop production, including orchards and vineyards* 9-4 Seeds 9-5 Fertilizers application 9-6 Pesticides application 9-7 Agricultural machinery (tractors, winnowers, sowing machines, etc.) 9-8 Vehicles 9-9 Buildings for crop stock, machinery and other agricultural needs

*Resource: Environmental, Health, and Safety Guidelines. World Bank Group, 2007. http://www.ifc.org/ifcext/sustainability.nsf/Content/EnvironmentalGuidelines

32 Mitigation measures presented here will be complemented by relevant monitoring activities once the specific EMP for a subproject will be developed.

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Table 9-1. Mammalian livestock production Environmental issues/ Sources/ causes Consequences Prevention/ mitigation Remarks impacts required Overall Potential Impact: MODERATE TO HIGH Contribution to soil, surface Animal wastes can be either Damage to environment Wastes should be managed and Animal waste management water and groundwater liquid, slurry, or solid, disposed appropriately systems involve the pollution from generated depending on the collection, transport, storage, wastes solids content treatment, and utilization Solid waste includes waste (rather than disposal) of the feed, animal waste, and waste to reduce such adverse carcasses. impacts

• Waste Feed Livestock feed includes hay, To maximize the efficiency of grain and silage. the operation and minimize wasted feed Other wastes include various kinds of packaging, used cleaning materials, and sludge from septic tanks Most of the animal waste is generated at housing, feeding, and watering locations • Animal Waste Migration of contaminants - To arrange manure storage Manure may be used as a to and pollution of surface facilities to prevent soil, surface fertilizer on agricultural land water, groundwater and air water and groundwater after careful assessment of pollution potential impacts due to the - Minimize the surface area of presence of hazardous manure in storage chemical and biological -Locate manure stacks away constituents from water bodies - Place dry manure or litter in a covered or roofed area; - Check for storage systems leakage regularly (e.g. inspect tanks for corrosion of seams) -Conduct manure spread only . Ensure that manure is as part of well planned applied to agricultural land strategy that considers potential only during periods that are risks to health appropriate for

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its use as plant nutrient (generally just before the start of the growing season)

Mammalian meet processing -Reduce mortalities through Animal carcasses should be Animal Carcasses proper animal care and disease properly managed and prevention; quickly disposed to prevent -Store carcasses until the spread of odors collection, using cooling if necessary, to prevent putrefaction; - Where no authorized collection of carcasses is available, on-site burial may be one of the only viable alternatives, if allowed by the competent authorities Contribution to surface and Livestock operations Effluents due to runoff from To reduce discharges to surface Techniques for treating underground water pollution/ generate on-point source livestock housing, feeding, water and groundwater from industrial process wastewater Wastewater Some facilities may also and watering, waste mammalian livestock in this sector include: include point sources which management facilities, and operations: - Sedimentation for typically require collection areas of land application of - Reuse water used for cleaning suspended solids reduction and treatment prior to final manure milking equipment to clean - Biological treatment, discharge the milking parlor; typically anaerobic followed - Reduce water use and spills by aerobic from animal watering by treatment, for reduction of preventing overflow soluble organic matter -Implement buffer zones to (BOD); surface water bodies, avoiding - Biological nutrient removal land spreading of manure for reduction in nitrogen and within these areas; phosphorus; - To reduce water consumption, - Chlorination of effluent especially where it may be a when disinfection is required limited natural resource Air pollution/ Air Emissions Air emissions include Ammonia gas has a sharp - Consider the sitting of new The livestock account for 9% ammonia, methane, odors, and pungent odor can act as facilities taking into account of anthropogenic CO2 and dust (e.g. form feed an irritant when present in distances to neighbors and the emissions (mostly from storage, loading, and high enough concentrations. propagation of odors; deforestation / land use unloading) - Control the temperature, changes for grazing and humidity, and other pasture for feed crops), 37%

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environmental factors of of anthropogenic methane manure storage to reduce emissions (mostly from emissions; enteric fermentation by - Consider composting of ruminants), and 65 percent of manure to reduce odor anthropogenic nitrous oxide emissions; emissions, the majority of - Reduce emissions and odors which from manure. during land application Methane has 23 times the activities by applying a few global warming potential centimeters below the soil (GWP) of CO2, while nitrous surface and by selecting oxide has 296 times the GWP favorable weather conditions of CO2. By improving (e.g. wind blowing away from livestock production inhabited areas); efficiency, producers can - If necessary, apply chemicals both increase profits and (e.g. urinase inhibitors) weekly reduce methane emissions. to reduce conversion of Methane can also be nitrogen to ammonia produced from microbial - Control the temperature, action in manure humidity, and other environmental factors of manure storage to reduce methane and nitrous oxide emissions; - Implement pasture/grazing management techniques to reduce nitrous oxide and Dust reduce visibility, cause methane emissions; • Dust respiratory problems, and - Install dust-collection systems facilitate the transport of at dusty operations, such as odors and diseases feed grinding; - Prevent overgrazing of pastureland; - Implement fugitive-dust- control measures, such as wetting frequently traveled dirt roads, as necessary Soil and water pollution/ Pesticides may be applied Pesticides and their - Pesticides should be Integrated Pest Management Pesticides directly to livestock or to degradation products may managed to avoid their (IPM) inter alia include: infra-structures. enter groundwater and migration into off-site land or - Maintain structures to keep

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Pesticides can also be used to surface water in solution, in water environments by out pests (e.g. plug holes, control predators emulsion, or bound to soil establishing their use as part of seal gaps around doors and particles. an integrated pest management. windows); Some are s known to cause - Use mechanical controls to chronic or acute health - If the application of pesticides kill, relocate, or repel pests; hazards for humans as well is warranted, spill prevention - Use predators to control as adverse ecological and control measures consistent pests impacts with the recommendations applicable to pesticides and other potential hazardous materials should be followed.

- Use of less harmful (non- persistent) pesticides;

- Not to apply more pesticides than needed;

- To ensure appropriate pesticides handling to avoid contaminated surface runoff, etc. Other impacts • Environmental damage Livestock access to creeks, Contaminating the water - Prevent animals’ access to rivers, and other natural with animal waste, surface water bodies using water sources; destroying riparian habitat, fences, buffer strips or other eroding the stream banks physical barriers;

• Overgrazing Alteration of the vegetation Soil losses and a reduction -Prevent overgrazing of composition and associated in soil productivity pastureland through use of: organisms in rangelands o Rotational grazing systems based on seasonal and local ecosystem resilience (e.g. riparian zones); o through properly evaluated pasture capacities, which are from 0,3 conv. cattle capita per ha on degraded lands to 1,5 conv. cattle capita on good

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lands; - Use of stabling; • Soil erosion - Not to pasture in early spring and late autumn; - Use of livestock trails to reduce soil trampling and • Loss of Biodiversity gully formation

-Prior or more intensive land use for livestock production, survey the area to identify natural and modified habitat types and ascertain their biodiversity value; - Ensure that any natural or modified habitat to be converted to livestock production does not contain critical habitat, - Ensure minimum disturbance to surrounding areas when managing livestock Animal diseases Animal diseases can enter a Some diseases can weaken - Control farm animals, facility with new animals, on or kill large numbers of equipment, personnel, and wild equipment, and on or people animals at an infected or domestic animals entering facility the facility; - Vehicles that go from farm to farm should be subject to special precautions such as limiting their operation, etc. - Sanitize animal housing areas; - Identify and segregate sick animals and develop procedures for adequate removal and disposal of dead animals Residual Impact Assuming Full Mitigation: LOW– MODERATE; Risk: LOW

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Table 9-2. Poultry production Environmental issues/ Sources/ causes Consequences Prevention/ mitigation Remarks impacts required Overall Potential Impact: MODERATE TO HIGH Soil, groundwater and surface Solid waste generated during Contribution to soil water pollution/ Wastes poultry production includes pollution, surface water and waste feed, animal waste, groundwater pollution carcasses, and sediments and sludge from on-site wastewater treatment Other wastes include various kinds of packaging, used cleaning materials, etc

Poultry feed primarily Contamination of storm - Protect feed from exposure to • Waste Feed consists of corn and soy, water runoff, primarily due rain and wind during although other grains, pulses, to organic matter content processing, storage, transport root crops, and substances of and feeding; animal origin. The feed is - Maintain feed storage, typically supplemented with transport and feeding systems amino acids, enzymes, in good working condition; vitamins, mineral fertilizer; supplements, and may - For waste feed which cannot contain hormones antibiotics, be recycled due to potential and heavy metals biosecurity issues, alternative disposal methods should be secured in consultation with local health authorities

• Animal Waste Manure contains ammonia, Air emissions of ammonia - Match feed content to the Collection, transport, storage, nitrogen, phosphorus, and and other gases - a potential specific nutritional treatment, utilization and other excreted substances risk of contamination to requirements of the birds in disposal of the waste. Manure such as hormones, surface or groundwater their different production / is sometimes composted, but antibiotics, and heavy metals, resources through leaching growth stages; can also be stored in stacking as well as bacteria and and runoff - Ensure that manure storage sheds, roofed storage areas, pathogens Pollution soil, water and facilities are arranged to outside and either covered or food resources prevent manure contamination uncovered, or occasionally in of surface water and ground ponds until it is ready for

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water (e.g. use of concrete transport to a disposal site or floors, etc.) land application area. - Keep waste as dry as Manure may be used as a possible, including by fertilizer on agricultural land minimizing amount of water after careful assessment of used during cleaning; potential impacts due to the - Minimize the surface area of presence of hazardous manure in storage; chemical and biological - Locate manure piles away constituents from water bodies, - Check for leakage regularly (e.g. inspect tanks for corrosion of seams), - Place dry manure or litter in a covered or roofed area; • Poultry Carcasses Poultry carcasses should be properly and quickly managed Land spread manure directly as they are a significant source after batch cleaning and only of disease and odors, and can during periods that are attract vectors. appropriate for its use as - Reduce mortalities through plant nutrient (generally just proper animal care and disease before start of the growing prevention; season) - Where no authorized collection of carcasses is available, on-site burial may be one of the only viable alternatives, if allowed by the authorities Contribution to surface and Runoff from poultry housing, Contamination of surface -Reduce water use and spills Possible techniques for groundwater pollution/ feeding, and watering; water and groundwater with from animal watering by wastewater treatment: Wastewater from waste storage and nutrients, ammonia, preventing overflow - Sedimentation for Application of manure, may sediment, pesticides, - Install vegetative filters to trap suspended solids reduction generated non-point source pathogens, and feed sediment; - Biological treatment for effluents due to runoff additives, such as heavy - Install surface water reduction of soluble organic metals, hormones, and diversions to direct clean runoff matter (BOD); antibiotics. around areas containing waste - Chlorination of effluent Effluents from poultry - Implement buffer zones to when disinfection is required; operations typically have a surface water bodies, as - Dewatering of residuals and high content of organic appropriate to local conditions composting or land

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material, as well as nutrients and requirements; application of wastewater and suspended solids - Avoiding land spreading of treatment residuals of manure close to water bodies acceptable quality -To reduce water consumption, especially where it may be a limited natural resource Air pollution/ Air Emissions Include primarily ammonia, To minimize emissions Odors and dust

• Ammonia and Odors Ammonia gas deposition - Consider the sitting of new into surface waters may facilities taking into account contribute to distances to neighbors and the euthrophication. propagation of odors; Release of ammonia gas - Consider composting of also reduces the nitrogen manure to reduce odor content and, therefore, the emissions; fertilizer value of the - Reduce emissions and odors manure during land application activities by applying a few centimeters below the soil surface and by selecting favorable weather conditions (e.g. wind blowing away from inhabited areas); - If necessary, apply chemicals (e.g. urinate inhibitors) weekly to reduce conversion of nitrogen to ammonia • Dust Reduce visibility, cause respiratory problems, and - Implement fugitive dust- facilitate transport of odors control measures (e.g. wetting and diseases vehicle parking lots and frequently traveled dirt roads, as necessary) Water and soil pollution/ Pesticides may be applied Pesticides and their - Maintain structures to keep Pesticides should be managed Pesticides use directly to birds or to infra-. degradation products may out pests (e.g. plug holes, seal to avoid their migration into Pesticides can also be used to enter groundwater and gaps around doors and off-site land or water control predators. surface water in solution, in windows); environments by emulsion, or bound to soil - Use mechanical controls (e.g. establishing their use as part particles. Pesticides traps, barriers, light, and of an Integrated Pest

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may, in some instances, sound) to kill, relocate, or repel Management (IPM) impair the uses of surface pests; waters and groundwater. - Use predators to control pests. Some pesticides are known -Protect natural enemies of to cause pests by providing a favorable chronic or acute health habitat (e.g. bushes for hazards for humans as well nesting sites and other as adverse ecological indigenous vegetation) that can impacts house pest predators; - Use good housekeeping practices; - Consider covering manure piles with geotextiles (which allow water to enter the pile and maintain composting activity) to reduce fly populations; - If pesticides are used, identify in the IPM plan the need for the pesticide and evaluate their effectiveness, to ensure that the pesticide with the least adverse impact is selected Animal Diseases Animal diseases can enter a Some diseases can weaken To minimize the facility with new animals, or or kill large numbers of potential for the spread of equipment, and on people. animals at an infected poultry pathogens: facility. Both poultry - Establish sound biosecurity manure and carcasses protocols for the entire poultry contain pathogenic operation that control animals, organisms which can infect feed, equipment, and personnel, humans, for example viruses entering the facility such as Avian Influenza - Prevent the interaction of wild (strain HN51), and parasites birds with feed, as this such as parasitical worms interaction could be a factor in the spread of avian influenza from sparrows, crows, etc. - Vehicles that go from farm to farm (e.g. transport of veterinarians, farm suppliers, buyers, etc.) should be

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subject to special precautions such as limiting their operation to special areas - Sanitize bird housing areas; - Identify and segregate sick birds and adequately remove and dispose dead birds Residual Impact Assuming Full Mitigation: LOW– MODERATE; Risk: LOW

Table 9-.3. Annual crop production & plantation crop production Overall Potential Impact: MODERATE Environmental issues/ Sources/ causes Consequences Prevention/ mitigation Remarks impacts required Water Consumption Water intake for irrigation: Stress on water resources - Select crops compatible with Water management for water availability in the area; annual crop production - Maximize the use of available should aim to optimize crop precipitation (“rain yield, while conserving the harvesting”), where feasible, quantity and quality of water by: resources o Reducing runoff by methods such as conservation tillage, terraces, and raised ridges that follow the land contour o Reduce seepage losses in channels o Control weeds on inter-row strips and keep them dry o Avoid over and under- irrigation to decrease potential for soil salinization o Maintain border vegetation in canals and drainage systems Soil erosion and loss of Poor management especially Soil degradation Soil loss prevention practices: productive capacity due to excessive use of Soil erosion may be - Use crops suited or adapted to machinery and over-intensive enhanced by heavy rain the local climate and soil farming practices falls, conditions; storms, and steep or long - In areas with steep slopes, slopes, and may contribute carefully consider planting

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to subsequent sedimentation zones and the direction of of surface water bodies planting in relation to land contours to avoid erosion caused by precipitation or irrigation; - Use stone barriers, vegetative cross-slope barriers, terraces, or drainage and diversion canals to prevent wind and water erosion; - Use appropriate machinery to avoid soil compaction caused by excessively heavy equipment; - Use plant cover or intercrops and shelterbelts to reduce erosion from wind and heavy rain; - Increase the organic matter content in the soil by applying organic matter such as crop residues, compost, and manure to protect the soil physically from sun, rain, and wind and to feed soil biota; - Consider adding lime to soil maintain stable pH levels Soil, groundwater and surface Application Contamination of soil, The preference should be given Pesticides should be managed water pollution/ Pesticides groundwater and surface to alternative pest management to avoid their migration into water by pesticides/ strategies, with the use of off-site land or water impact on human health and synthetic chemical pesticides as environments biodiversity a last option. Pesticide Application If pesticide application is warranted, then the following measures are recommended: -Train personnel to apply pesticides; -Review the manufacturer’s directions on maximum

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recommended dosage or treatment, and apply the minimum effective dose; -Avoid the use of banned and obsolete pesticides - Use only pesticides that are labeled in accordance with international standards and norms; - Use certified application equipment; - Establish untreated buffer zones or strips along water sources, rivers, streams, ponds, lakes, and ditches to help protect water resources -Store pesticides in their original packaging, in a dedicated, dry, and well aerated location; - Mixing and transfer of pesticides should be undertaken by trained personnel in areas, dedicated for this purpose; - Purchase and store no more pesticide than needed Surface water pollution/ Nutrients input from area Eutrophication of surface - Balance nutrient application, Nutrients under the crop production water/ dissolved oxygen including considering the use of (mainly from mineral depletion reduced or no soil tillage fertilizers) techniques, nutrient recycling, one-pass soil preparation and sowing; - Use crop rotation methods to enable cultivation of leguminous plants with nitrogen fixation capabilities; - Use plants to cover the soil, especially during a fallow period to reduce loss of nutrients;

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- Incorporate organic waste materials into soils rather than burning; - Avoid excess fertilization; - Assess soil acidity, which is important for achieving maximum uptake of phosphates; - Not to apply solid or liquid manure directly onto grazing areas or edible crops Loss of biodiversity Soil degradation, Loss of Genetic Resources - Where possible, maximize fragmentation and and Variability reuse of residue from the disturbance of habitats, etc. previous crop on the soil surface; - Reduce soil preparation to maintain the structure of soil Ecosystems; - Utilize field borders to provide wildlife corridors around fields used for annual crop production; - Provide buffer zones on farmland bordering natural or semi-natural habitats; - Ensure protection of the natural enemies of pests by providing favorable habitats, such as hedges, nesting sites, and original vegetation, to house pest predators; and - Promote the use of organic agricultural practices to the extent feasible Soil pollution/ Crop residues Often relate to pesticide -Recycle crop residues and and other solid waste containers and other organic materials by obsolete, expired pesticides leaving the materials in the fields, plowing, and / or composting; -Manage expired and unwanted

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pesticides as hazardous wastes Air pollution/ Air emissions Fuel combustion by-products -Manage emissions from resulting from the operation mechanized farm equipment of mechanized equipment or both mobile and stationary; from combustion by-products - Reduce particulate matter from the disposal or emissions by avoiding burning; destruction of crop residues. - Avoid unintended emissions of persistent organic pollutants (POPs) which may arise from open burning of pesticide treated agricultural wastes Residual Impact Assuming Full Mitigation: LOW– MODERATE; Risk: LOW

Table 9-4. Seeds Overall Potential Impact: MODERATE Potential Impacts Causes Consequences Mitigation/prevention required Remarks Soil, groundwater and Surface water pollution by Avoid excess fertilization (for other surface water pollution/ Use nutrients resulting in water fertilize-related measures refer to of chemical fertilizers, and bodies eutrophication Table B-.3 Annual Crop Production pesticides Water and soil pollution by & Plantation Crop Production); pesticides/ impact on human -Avoid the use of banned and health and biodiversity obsolete pesticides - Use only pesticides that are labeled in accordance with international standards and norms (for other pesticide-related measures refer to Table B-3 Annual Crop Production & Plantation Crop Production) Risk for introduction of Transfer of introduced genes Genetic drift into other areas - Use certified crop seeds that do genetically modified plant to other species (possibly where GMOs are not wanted not contain seeds from seed weedy or invasive), invasive alien species; unanticipated impact on -The introduction of GMO crops beneficial insects, or increased should be assessed for

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pest resistance. Another compliance with the existing host concern related to country regulatory framework for the introduction or export of such introductions plants and plant products is the potential for introduction of pests Residual Impact Assuming Full Mitigation: LOW– MODERATE; Risk: LOW

Table 9-5. Fertilizers application Overall Potential Impact: MODERATE TO HIGH (cumulative impact) Direct Impacts Causes Consequences Mitigation Required Remarks Soil degradation/ Reduction Reliance on chemical Modified soil structure and -Apply organic matter, such as To develop application rates in soil organic content fertilizers which do not have reduction in soil moisture manure, to replace chemical and best land husbandry and an organic component – less holding capacity; increase in fertilizers to the extent crop rotation plans reliance on compost material soil acidity. In the long run, practical; and manure for meeting soil possible loss of productivity as -Incorporate manure into the fertility requirements. a result of insufficient soil soil or apply between growing moisture; loss of soil’s natural crops to improve plant fertility utilization of nutrients and thereby reduce nutrient loss, etc. Air pollution Emission of greenhouse gases Contribution to global - Where feasible, use biofuels from chemical fertilizers. warming resulting in climate instead of fossil energy to change reduce net GHG emissions; - Adopt reduced tillage options to increase the carbon storage capacity of soils Water pollution Nutrient enrichment of water Eutrophication of water bodies -Time the application of crop To develop and implement bodies from fertilizer runoff Modified aquatic ecosystems nutrients using meteorological the most appropriate to the . information to avoid, where area land and crop practices feasible, application during or Impact form a single close to precipitation events; husbandry will not be -Use appropriate technical significant but cumulatively, equipment for spraying over many husbandries manure; within the same watershed -Establish buffer zones, strips, the impact could be or other “no-treatment” areas significant along water sources, rivers,

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streams, ponds, lakes, and ditches to act as a filter to catch potential runoff from the land Probable Residual Impact Assuming Full Mitigation: LOW – MODERATE

Table 9-6. Pesticides application* Significance of Overall Potential Impact: HIGH (cumulative impact) Potential Impacts Causes Consequences Mitigation Required Remark Diseases/ Illness Improper handling, Increased healthcare costs; Proper handling and use of application and storage of lost work time; lost family pesticides; pesticides. income. Proper storage of pesticides; Consumption of crops with Use only approved pesticides; high levels of pesticide Sanitary measures (proper residues cleaning, washing, etc.) (for other pesticide-related measures refer to Table B-3) Soil contamination Residual pesticides in soil. Loss of soil productivity; Use of approved pesticides long term loss / altered soil and recommended application micro-fauna important to soil rates, scheduling and mode of / plant relationships. application (for other pesticide-related measures refer to Table B-3) Loss of biodiversity Pesticide ingestion by fauna. Loss of fauna Use of approved pesticides and recommended application rates, scheduling and mode of application (for other pesticide-related measures refer to Table B-3) Water pollution Ground and surface water Impaired health of local and Use of approved pesticides International waterways may contamination. downstream water and recommended application be affected. consumers; increased health rates, scheduling and mode of Pesticide use not likely costs; lost work time; lost application (for other significant on a single family income pesticide-related measures husbandry but cumulatively Damage to aquatic refer to Table B-3) on many farms within the ecosystems same watershed, impact could Loss of biodiversity. be significant Probable Residual Impact Assuming Full Mitigation: MODERATE; Risk: HIGH

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* Note: More detailed description of the pesticides application and handling is presented in the Table C-.3. Annual crop production & plantation crop production of current volume and Chapter “Pest Management Issues” in Volume I.

Table 9-7. Agricultural Machinery (tractors, winnowers, sowing machines, etc.) Significance of Overall Potential Impact: MODERATE TO HIGH Potential Impacts Causes Consequences Mitigation Required Remarks Soil and water pollution Contamination from machine Loss of soil productivity Good practices to be carried This is a minor impact and fuels and lubricants. Decrease of crop production out by equipment operators awareness to operators to Deterioration of potable Agricultural machinery should refuel under safe conditions water quality be kept in good conditions is all that would be required. Fuels and lubricants are to be stored and handled in devoted areas, etc. Air pollution CO2 releases Contribution to greenhouse To ensure that all machinery gasses and global warming. engines are efficient and well maintained Soil erosion Tillage against the contour Increase surface runoff Tillage on the contour To advise farmers on proper contributing to increased tilling techniques with surface water bodies tractors alluviation Reduced soil percolation capacity, etc. Soil compaction Use of heavy machinery Soil erosion and alluviation Ensure equipment of a size Large farms require more of water bodies that suitable for soil conditions machinery Poor water permeability of the soil profile/ decrease of soil moisture, etc. Probable Residual Impact Assuming Full Mitigation: LOW

Table 9-8. Vehicles Potential Overall Impact: LOW Potential Impacts Causes Consequences Mitigation Required Remarks

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Air pollution CO2 emissions Contribution to global Efficient engines warming/ climate change. Where possible, to use-biofuel Soil and water pollution Use, handing and storage of Leakages into soil and To maintain engine in fuel and lubricants groundwater goodconditions to avoid machine oil leakages To use specially organized sites for handling and storage of fuel and lubricants For other measures refer to Table C-13. Fuel & Lubricants’ Storage and Handling Probable Residual Impact Assuming Full Mitigation: LOW; Risk: LOW

Table 9-9. Buildings for crop stock, machinery and other agricultural needs Potential Overall Impact: LOW Potential Impacts Causes Consequences Mitigation Required Remarks Soil degradation/ Loss of Improper location of Reduced income from lower Location of buildings in sites This is not likely to be an productive topsoil buildings amount of crop production with low soil productivity; important consideration Proper design to minimize area under construction For other measures refer to Table E-1 Construction activities Residual Impact Assuming Full Mitigation: LOW; Risk: LOW

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Annex 1233 Impacts, Causes, Consequences and Mitigation measures for sub-projects in Agro- processing & Food production Sectors

D-1 Poultry & meet processing* D-2 Dairy* D-3 Vegetable oil processing* D-4 Vegetable processing and canning* D-5 Flour milling D-6 Warehousing

*Resource: Environmental, Health, and Safety Guidelines. World Bank Group, 2007. http://www.ifc.org/ifcext/sustainability.nsf/Content/EnvironmentalGuidelines

33 Mitigation measures presented here will be complemented by relevant monitoring activities once the specific EMP for a subproject will be developed.

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Table D-1. Poultry & meet processing Overall Potential Impact: HIGH (due to human health threat) Environmental issues/ Sources/ causes Consequences Prevention/ mitigation Remarks impacts required Soil, groundwater and surface Slaughtering and rendering Poultry: the carcass yield is, Poultry: Provision of adequate water pollution/ Solid organic activities on average, 75% of the live slurry storage capacity for wastes and by-products bird weight excreta until it is transported for disposal or for use as agricultural fertilizer Meet: Waste products and Meet: continuously collect by- by-products of slaughtering products dry and segregated processes. from each other, along the The quantity of by-products length of the slaughter-line and from cattle often exceeds throughout animal by-products 50%of the animal’s live treatment; optimise bleeding weight, and 10 to 20% for and the collection of blood; use pigs sealed, storage, handling and Special Risk Materials charging facilities for animal (SRM by-products .

Animal and birds diseases

Birds: Highly Pathogenic Batch of birds delivered to Other birds and human Poultry: Birds must be stored Avian Influenza (HPAI) the slaughterhouse is diseases. separately to avoid contact with suspected of infection with healthy birds Highly Pathogenic Avian - HPAI should be suspected Influenza (HPAI) when the dead-on-arrival frequency is abnormally high, and in connection with other symptoms ( - If HPAI is confirmed, the entire carcass of the dead birds should be handled as high risk material and transported safely to a rendering facility. - The slaughterhouse should be cleaned and disinfected, and a minimum operational shutdown of 24 hours should be applied, 166

etc. Livestock: bovine spongiform Livestock: should be separated encephalopathy (BSE), etc. and transported to external facilities in separate containers for treatment and final disposal. - Tissue of a livestock treated as Special Risk Material should be destroyed through incineration with a minimum gas temperature of 850oC; - Collecting animals not approved by veterinary inspection and segregating them from animal materials sent by the slaughterhouse for off-site rendering Soil and water pollution/ Poultry and meat processing Surface water, groundwater Poultry: Sludge Treatment and operators and soil pollution - Reuse of high-quality, low Disposal risk by-products; - Disposal of fat at landfills if it cannot be used for biogas production Livestock: -Reuse materials that may be separated from pretreatment processes in the manufacture of high-quality by-products (e.g. pet food or technical fat for manufacturing); -If no other alternatives are feasible, dispose of fat at landfills

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Surface and groundwater Poultry processing activities Poultry & Meet: Poultry: pollution/ Wastewater Effluents with high content - Organic materials to collect of organic matter, nitrogen, separately for recycling; phosphorus, residues of -Ensuring that leakage from chemicals, pathogens animal by-product storage containers are avoided; -Use of dripping trays to collect blood to transport to the blood tank rather than into the wastewater stream; Application of appropriate tank and equipment cleaning procedures -Choosing cleaning agents and application rates that do not have adverse impacts on the environment, or on wastewater treatment processes and sludge quality for agricultural application Meet process activities Meet: - Prioritize the removal of solid waste before it enters the wastewater stream; - Collect blood for use in food, feed or in the pharmaceutical industry; -Prevent direct runoff to water courses, especially from manure storage areas, etc

Water Consumption Poultry & Meet processing Stress on water resources - Optimizing water operations consumption for rinsing and cooling without jeopardizing food safety; -Prefer a dry-cleaning process areas before cleaning with water Air pollution/ Air emissions Poultry & meet processing Poultry: • Odor -Maintenance of clean live bird 168

handling areas by removing fecal matter and dead birds on a daily basis; -Reducing the inventory of raw carcasses, waste, and byproducts and minimizing any storage to short periods of time in a cold, closed, well- ventilated area. - Dead birds, waste, and byproducts should not be stored in open spaces, where possible

Meet: singeing, scalding, lair Meet: Odor may often be Meet: age, wastewater treatment the most significant form of -Consider the location of new and rendering air pollution facilities, taking into account proper distances to neighbors and the propagation of odors; Pasteurize organic material before processing it to halt biological processes that generate odor; -Clean pens and livestock yards on a timely basis; -Empty and clean fat traps frequently • Dust Meet: -Clean and maintain a sufficient level of humidity in pens and livestock yards; Reduce fugitive dust by minimizing surface areas with exposed soil surfaces, and by planting hedges or erecting fences to minimize wind turbulence, etc. Energy Consumption Heating of water and Stress on natural resources Poultry & Meet: producing steam for process - Control of water applications, cleaning levels and recirculation of

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purposes and operation of water; mechanical and electrical - Improvement in cooling equipment, refrigeration, and efficiency by insulating air compressors refrigeration room / areas and doors; installation of an automatic door closing mechanism, etc. Probable Residual Impact Assuming Full Mitigation: LOW

Table D-2. Dairy Overall Potential Impact: HIGH (primarily due to human health threat) Environmental issues/ Sources/ causes Consequences Prevention/ mitigation Remarks impacts required Contribution to surface water Silk solids (e.g. protein, fat, Significant organic content, To prevent contamination of pollution/ Wastewater carbohydrates, and lactose) high salinity levels; other wastewater: Salting activities during pollutants: acids, alkali, and -Avoid milk, product, and by- cheese detergents, etc. as well as product losses; pathogenic microorganisms -Install grids to reduce or avoid and viruses the introduction of solid materials into the wastewater drainage system; -Adopt best-practice methods for facility cleaning systems, using approved chemicals and / or detergents with minimal environmental impact and compatibility with subsequent wastewater treatment processes Soil, groundwater and surface Production processes Nonconforming products -Where possible and subject to water pollution/ Solid Waste and product losses, grid and sanitary requirements, filter residues, sludge from segregate solid process waste centrifugal separators and and non-conforming products; wastewater treatment, and -Optimize product filling and packaging waste packaging equipment to avoid product- and packaging- material waste; 170

-Optimize the design of packaging material to reduce the volume of waste - Plastic waste from packaging cuttings can be reused, or should be sorted as plastic waste for off-site recycling or disposal, etc. Air Pollution/ Air Emissions Dairy processing activities Fine milk powder residues Installation of exhaust in the exhaust air from the ventilation equipped with dry • Dust spray drying systems and powder retention systems (e.g. bagging of product cyclones or bag filters • Odor Dairy processing -Ensure wastewater treatment facilities are related to on-site facilities are properly wastewater treatment designed and maintained for the facilities, in addition to anticipated wastewater load; fugitive odor emissions from - Keep all working and storage filling/emptying milk areas clean; tankers and storage silos - Empty and clean the fat trap frequently (e.g. daily emptying and weekly cleaning); -Minimize stock of waste and by-products and store for short periods in cold, closed, and well-ventilated rooms Energy consumption Dairy processing facilities Stress on natural resources -Reduce heat loss by : Approximately 80% of the consume considerable - Using continuous, instead of energy requirements are for amounts of energy batch, pasteurizers; thermal uses to generate hot - Partially homogenizing milk water and produce steam for to reduce the size of heat process applications (e.g. exchangers; pasteurization, evaporation, - Improve cooling efficiency and milk drying) and cleaning purposes. The remaining 20% is used as electricity to drive processing machinery, refrigeration, ventilation, and lighting Probable Residual Impact Assuming Full Mitigation: NONE

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Table D-3. Vegetable oil processing Overall Potential Impact: LOW Environmental issues/ Sources/ causes Consequences Prevention/ mitigation required Remarks impacts Soil, groundwater and surface Vegetable oil processing -Use uncontaminated sludge and The amount of waste water pollution/ Solid waste activities generate significant effluent from on-site generated depends on the and by-products quantities of organic solid wastewater treatment as fertilizer quality of the raw waste and by-products. in agricultural materials and the use or . Other solid wastes from the applications; reprocessing of the vegetable oil -Dispose of contaminated sludge discarded materials into manufacturing process from wastewater commercially viable by- include soap stock and spent treatment at a sanitary landfill or products acids from chemical refining by incineration. of crude oil; spent bleaching - Reduce product losses through earth containing gums, better production control (e.g. metals, and pigments; monitor and adjust air humidity to deodorizer distillate from the prevent product steam distillation of refined losses caused by the formation of edible oils; mucilage from molds on edible degumming; and spent materials) catalysts and filtering aid from the hardening process Contribution to surface water Oil washing and -Use emulsion breaking pollution/ Wastewater neutralization (waters contain techniques to segregate high BOD organic, high content of and COD oils from wastewater; suspended solids, organic - Use grids to cover drains in the nitrogen, and oil and fat, and production area and to may contain pesticide prevent solid wastes and residues from the treatment concentrated liquids from of the raw materials entering the wastewater stream; - Select disinfection chemicals to match the cleaning operation being applied on the process equipment to the type of problem; - Apply cleaning chemicals using the correct dose and application; -When feasible, replace phosphoric acid with citric acid in degumming 172

Water consumption Vegetable oil facilities Stress on water resources - When economically viable, require significant amounts consider the use of physical of water for crude oil refining instead of chemical production (cooling water), refining to reduce water chemical neutralization consumption; processes, and subsequent - Recover condensate from washing and deodorization heating processes and reuse; - Close the cooling water circuit and re-circulate cooling waters Air pollution/ Air Emissions Vegetable oil processing Combustion byproducts To prevent and control dust: • Particulate matter Dust: - from processing such as NOx, SOx, PM, - Ensure proper maintenance of of raw materials, including volatile organic compounds cleaning, screening, and cleaning, screening, and (VOCs), and greenhouse crushing equipment to reduce crushing gases (CO and CO2) emissions of fugitive dust; - Reduce odor emissions with a caustic, alkaline, or ozone scrubber system • Volatile Organic Compounds Use of oil-extraction To prevent and control VOCs: - - (VOCs) solvents, normally hexane Ensure the efficient recovery of solvent by distillation of the oil from the extractor; - Management strategy is a • Exhaust Gases reduction in energy demand, use of cleaner fuels; - Application of emissions controls, where required, etc. Water and energy Heating of water and Stress on water and other To use energy and water save consumption producing steam for process natural resources technologies and machinery applications (especially for soap splitting and deodorization) and cleaning processes Refrigeration and compressed air Illness Cold pressed oil contains Severe diseases resulting in Use alternative pressing process high amounts of fatty acids lower labor efficiency and and pesticide residues. income Injuries Open machinery Lost productivity, work Safety instructions; safety clothing days and income. where appropriate (e.g. hard hats); 173

protective guards on all machinery. Probable Residual Impact Assuming Full Mitigation: NONE

Table D-4. Vegetable processing and canning Overall Potential Impact: LOW Potential Impacts Causes Consequences Mitigation Required Remarks Water pollution Residue from vegetable and Damage to aquatic ecosystems Compost vegetative waste. fruits allowed to be dumped (high organic resulting in into surface waters. dissolved oxygen depletion). Soil, groundwater and Raw material, canning Recycle metal back to metal processor. surface water pollution/ material scrap, etc. Solid waste Diseases/ illness Canning uses lead solder for Lead (Pb), a carcinogen, is Use tin (Sn) for soldering or adopt can seams cumulative in humans other appropriate sealing methods. Injuries Open machinery Lost labor efficiency &income Safety instructions; safety clothing where appropriate (e.g. hard hats); protective guards on all machinery. Residual Impact Assuming Full Mitigation: NONE; Risk: LOW

Table D-5. Flour milling Overall Potential Impact: LOW Potential Impacts Causes Consequences Mitigation Required Remarks Soil and water pollution/ Wheat husks left from milling Recover bran; Solid waste dumped at municipal disposal Use for animal feed site Injuries Open machinery. Lost labor efficiency and Safety instructions; safety clothing income. where appropriate (e.g. hard hats); protective guards on all machinery. Illness Flour dust Respiratory irritation Provide masks to workers Residual Impact Assuming Full Mitigation: NONE; Risk: LOW Table D-6. Warehousing Overall Potential Impact: LOW Potential Impacts Causes Consequences Mitigation Required Remarks Only those during sitting, construction and decommissioning phases. Residual Impact Assuming Full Mitigation: NONE; Risk: LOW

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Annex 13. Social Screening Check List

Instructions (i) PIU/ Subproject implementer unit assigned34 with help of experts if needed: completes the form. (ii) The classification of a project is a continuing process. If there is a change in the project components, project design or/and site PIU/Subproject Implementer assigned completes and submits a new form. The old form is attached for reference. (iii) Screening is filled in for all type of subprojects financed under the Project. 1. Project name: 2. Subproject name: 3. Location (Province, city, village) 4. Infrastructure to be constructed (all types including assess roads, infrastructure etc.): 5. Screening is done First Time ______Time, (mention the reason)______6. Project/subproject start date 7. Project/subproject completion date 8. Screening date 9. Field visit conducted: No, Yes, (add dates and locations in the field) 10. Description of the Subproject Give a brief introduction to the sub-project and its components, their objectives and benefits. Details about existing conditions of the facilities and proposed civil works with scope Available design maps earmarking site and proposed activities in order to explain work. Superimpose the map on the Google earth if available. Whether this is purely rehabilitation of existing facilities or will involve any new works. Is this sub-project closely linked to any other activity not funded under the Project? Will this sub-project involve any ancillary impact/ activity away from the work site? Not Observations, Questions Yes No Known remarks Impacts Due to Land Acquisition/ Donation 1. Is the ownership status and current usage of land to be used for the construction known? (provide details in the remarks). Please, add is

the site chosen for this work free from encumbrances and is in possession of the subproject implementer? 2. Is land for material mobilization or transport for the civil work available within the existing plot (Right of Way)? If not, provide the details on that land location, availability etc. 3. Would the Project potentially involve temporary or permanent and full or partial physical displacement? (Specify in the remarks what type of displacement is anticipated) 4. Would the Project potentially involve temporary or permanent and full or partial economical displacement (e.g. loss of assets or access to resources due to land acquisition/ donation or access restrictions – even in the absence of physical relocation)? (Specify in the remarks what type of displacement is anticipated) 5. Is there any impact on illegal land use practices? Are there any non- titled people who are living/doing business on the proposed site/project locations that will be used for civil work? If yes, provide in the Note Section details on any temporary or permanent impact on them? 6. If the site is privately owned, can this land be purchased through

negotiated settlement? 7. Will the land owners donate the land plot for the project? 8. Will there be loss of shelter and/or residential land due to land

acquisition/ donation?

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9. Will there be loss of any productive assets due to land

acquisition/donation? 10. Will there be losses of crops, trees, and fixed assets due to land

acquisition/donation? 11. Will there be loss of businesses or enterprises due to land

acquisition/donation? 11. Will there be loss of income sources and means of livelihoods due

to the subproject land acquisition/donation? 12. Will any social or economic activities be affected by land use

related changes? 13. Will people lose access to natural resources, communal facilities, services or other assets as a result of land acquisition/donation or project implementation? Provide details in the remarks. 14. Will project result in land use restrictions and/or easement rights?

Provide details in the remarks. 15. Will access to land and resources owned communally or by the state

be restricted? 16. Are there any previous land acquisitions happened and the identified land has been already acquired? Provide details in the Note section. 17. Are there any land acquisition happening in frame of this project but without financing of the World Bank? Provide details in the Note section. Data on Impact and Vulnerable Groups 18. Is land area needed for the project known? (Provide estimates in the

Remarks, including status of ownership, area, type of land use etc.) 19. Is there any estimate of the likely number of persons that will be

displaced by the Project? 20. Are any of them poor, female-heads of households, or vulnerable to

poverty risks? Provide some estimate Gender 21. Is there a likelihood of impacts on gender equality and/or the

situation of women and girls? 22. Would the Project potentially reproduce discriminations against women based on gender, especially regarding access to assets, opportunities and benefits? 23. Would the Project potentially limit women’s ability to use, develop and protect natural resources, taking into account different roles and

positions of women and men in accessing environmental goods and services? Decision on categorization After reviewing the answers above, a sub-project’s category is determined.35 Prepared by ______Date ______Approved by______Date ______Note: Attach additional information on the project, as necessary. For example, maps, photos, expert conclusions, minutes of meeting etc.

35 In category A projects land acquisition in a project affects more than 200 people, takes more than 10 percent of any holding, and/or involves physical relocation of population. In category B projects land acquisition in a project affects less than 200 people, takes more than 10 percent of any holding, and/or involves physical relocation of population. In Category C project, there is no any impact.

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Annex 14. Asbestos Containing Material Management Plan (Example)

Applicability The Asbestos Containing Material Management Plan (ACMMP) applies to all project construction or reconstruction sites and any related areas. Contractors employed by Project are legally responsible for their construction sites and related areas and must follow the provisions of the Project ACMMP within those locations. Specifically, this procedure must be used to ensure the safe handling, removal and disposal of any and all Asbestos Containing Materials (ACM) from those areas.

Immediate Action On discovering ACM on a Project site the contractor must: a) Stop all work within a 5 m radius of the ACM and evacuate all personnel from this area; b) Delimit the 5 m radius with secure fencing posts, warning tape and easily visible signs warning of the presence of asbestos; c) If the site is in an inhabited area, place a security guard at the edge of the site with instructions to keep the general public away; d) Notify the RPCU’s Safeguards Specialist and arrange an immediate site inspection. Equipment To remove asbestos from a construction site, contractors must provide the following equipment: a) Warning tape, sturdy fence posts and warning notices; b) Shovels; c) Water supply and hose, fitted with a garden-type spray attachment; d) Bucket of water and rags; e) Sacks of clear, strong polythene that can be tied to close; f) Asbestos waste containers (empty, clean, sealable metal drums, clearly labelled as containing asbestos). Personal Protective Equipment (PPE) All personnel involved in handling ACM must wear the following equipment, provided by the contractor: g) Disposable overalls fitted with a hood; h) Boots without laces; i) New, strong rubber gloves; j) A respirator is not normally required if there are only a few pieces of ACM in a small area, and if the ACM is damp; k) There must be no smoking, eating or drinking on a site containing ACM. Decontamination Procedure 1: Removing small pieces of ACM a) Identify the location of all visible ACM and spray each lightly but thoroughly with water; b) Once the ACM is damp, pick up all visible ACM with shovels and place in a clear plastic bag; c) If ACM debris is partially buried in soil, remove it from the soil using a shovel and place it in the plastic bag; d) Insert a large label inside each plastic bag stating clearly that the contents contain asbestos and are dangerous to human health and must not be handled; e) Tie the plastic bags securely and place them into labelled asbestos waste containers (clean metal drums) and seal each drum; Soil that contained ACM debris must not be used for backfill and must instead be shovelled by hand into asbestos waste containers; f) At the end of the operation, clean all shovels and any other equipment with wet rags and place the rags into plastic disposal bags inside asbestos waste containers. Decontamination Procedure 2: Removing ACM-contaminated backfill a) If soil containing ACM debris has inadvertently been used for backfill this must be sprayed lightly with water and shovelled out by hand to a depth of 300 mm and placed directly into asbestos waste containers (i.e. not stored temporarily beside the trench); b) Any ACM uncovered during the hand shovelling must be placed in a clear plastic bag; c) Once the trench has been re-excavated to 300 mm, if there is no visible ACM remaining, the trench may be refilled by excavator using imported clean topsoil.

Disposal

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ACM should be disposed of safely at a local hazardous-waste disposal site if available, or at the city municipal dumpsite after making prior arrangement for safe storage with the site operator. • The Contractor must arrange for the disposal site operator to collect the sealed asbestos waste containers as soon as possible and store them undisturbed at the disposal site. • At the end of construction Contractors must arrange for the disposal site operator to bury all ACM containers in a separate, suitably-sized pit, covered with a layer of clay that is at least 250 mm deep. a) Personal Decontamination At the end of each day, all personnel involved in handling ACM must comply with the following decontamination procedure: • At the end of the decontamination operation, clean the boots thoroughly with damp rags; • Peel off the disposable overalls and plastic gloves so that they are inside-out and place them in a plastic sack with the rags used to clean the boots; • If a disposable respirator has been used, place that in the plastic sack, seal the sack and place it in an asbestos waste container; • All personnel should wash thoroughly before leaving the site, and the washing area must be cleaned with damp rags afterwards, which are placed in plastic sacks as above. b) Clearance and Checking-Off • The decontamination exercise must be supervised by site supervisors (engineering or environmental). • After successful completion of the decontamination and disposal, the Contractor should visually inspect the area and sign-off the operation if the site has been cleaned satisfactorily. • The contractor should send a copy of the completion notice to the RPCU, with photographs of the operation in progress and the site on completion.

TRAINING

RPCU’s Environmental Specialist may hire the specialized companies to conduct training on ACCMP implementation for Contractors staff and RPCU and PIU. The training will include a session focusing on ACM, which covered: a) Risks of contact with ACM; b) Responsibilities for dealing with ACM on project’s construction sites; c) The Project’s ACMMP and the Protocol for site clean-up; d) Awareness-raising for the contractors’ workforce.

COST ESTIMATE Costs incurred by contractors in implementing the ACMMP are included in their budget in ESMP budget.

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Annex 15. Health, Safety and Wellbeing Inspection Checklists

Project name: Project no:

Project location:

Inspection team: Inspection date:

Note: Full compliance record Y=Yes and record positive findings – For partial compliance record N=No and record findings to correct. N/A Close-out Item Y Comments and Corrective actions if required By Initials N (date) 1.0 Plant and Equipment Plant in sound condition? Daily pre-start checks completed? Safety items/faults recorded in

pre-start checklist? Lights, signals, beepers working? Fire extinguishers fitted/charged? Seat belts installed/worn? Speed limits posted/observed? Driver/operator ticketed/licenced? Warning signs/stickers in place? PPE worn for type of plant? Worker and Other separation

acceptable? High visibility clothing worn? Spotters being used during plant

operations? Safe operations being observed by

all?

2.0 Cranage and Rigging Operator, dog man, rigger,

Trained/certified? Log book/maintenance records? Daily pre-start checks completed? Any oil or diesel leaks? Load charts/certificates available? All Rigging gear tagged/colour

code? Rigging gear/slings good

condition? Rigging gear/slings stored

correctly? Fire extinguishers fitted/charged? 2 tag lines available? Hooks, clasps, shackles good

working order and condition? Outriggers used, stabilized pads

and correct set-up? PPE available and worn?

3.0 Motor Vehicles

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4wd roll-over bar fitted?

Brakes, warning lights operating?

Glass in clean condition?

Fire extinguishers/fitted/charged?

Seat belts installed/worn?

Reverse beeper operating?

Qualified operators for on-site plant and equipment appointed? Operators are provided with refresher training? First aid kitted fitted/supplied and stocked?

4.0 Power Tools Tools, cords in good condition?

Correct tools used for the job?

Guards on tools in place?

Tools/leads/cords tagged/correct colour and recorded? RCDs fitted, including portable generators? RCDs tested and results recorded? Terminal boxes with covers? Switch boards locked, access, phone number for access? Electrical leads protected from damage? PPE available and worn? Specialized PPE for special work (face/eyes/gloves) provided and worn? Earth stake in place on generators (unless earth bonding on generator)?

5.0 Compressed Air Compressor fitted with silenced unit? Fire Extinguisher available? All valves operational and correct?

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Note: Full compliance record Y=Yes and record positive findings – For partial compliance record N=No and record findings to correct. N/A Close-out Item Y Comments and Corrective actions if required By Initials N (date) Inspection – Tags on machine/tools with details recorded? Whip checks/chains on hoses fitted? Drip tray provided under diesel engine fill point? Specific PPE for Workers using air tools (AVG/Hearing Protection/etc.)? Manifolds tested and identified effective? Exhaust fumes from compressor away from working area/location?

6.0 Flammable Gases and

Liquids Containers/drums clearly marked with contents? Safety Data Sheets is available

/current? Correct separation of cylinders? Storage area well ventilated? Cylinders stored out of sun/heat? Gas cylinders vertical, secured/chained? Fire extinguishers available

/charged? No smoking and hazard signs in place and visible? Cylinder caps in available and use? Bunds/drip trays available and in place? All inspection/colour coded tags used and legible? Empty/Full cylinders segregated, stored and secured?

7.0 Welding and Cutting Hot work permit in place/used? All hoses fitted with 2 Flash Back arrestors (Cylinder/Torch end)? Electrical leads protected? Screen in place when welding is being carried out? Gas bottles on trolley and restrained? Fire extinguisher in place at work point? All equipment inspected/tags current?

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Note: Full compliance record Y=Yes and record positive findings – For partial compliance record N=No and record findings to correct. N/A Close-out Item Y Comments and Corrective actions if required By Initials N (date) Cylinder caps in use and secured in place? Specific PPE available and being used? Fireproof blankets available and in place? Signage in positioned and placed to notify workers and others? Drip trays under stationary diesel- powered machines? Flammable material separated as required by the permit?

8.0 Materials Handling, Storage Material stored, secured and/or stacked safely? Traffic control in storage and access area? Manual lifting operations safe and correct for material handling? Mechanical aids for lifting available and used? Materials weather protected (Sun,

Rain, Storm etc.)? Signage is in place to notify workers and others? No temporary or permanent water holding areas to favour mosquito breeding? Spotters available to manage traffic and worker movement and control? Adequate space for vehicles to manoeuvre around/through compound?

9.0 Hazardous Substances Safety Data Sheets available at location? Hazardous/Chemical (HazChem) storage with good ventilation? Eye wash, showers, and hand wash facility? Hazardous liquids in suitable bund facility? No smoking signs displayed? Correct PPE available and being worn? Signage for HazChem displayed and visible? Correct spill kits available and stocked?

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Note: Full compliance record Y=Yes and record positive findings – For partial compliance record N=No and record findings to correct. N/A Close-out Item Y Comments and Corrective actions if required By Initials N (date) HazChem containers appropriately labelled? HazChem certified handlers appointed? HazChem test certification required and certificates displayed/available?

10.0 Work at Height Fall protection (barricades, railings) in place to prevent falls? Access to working at height is adequate and safe? Exclusion zones are in place and effective for the area? Ladders used are inspected/tagged? Are ladders used for access only? Are ladders secure (top & bottom) to prevent movement - 1m over, 1m < / 4m>?? Are industrial ladders used for the work being undertaken? Are harness available and required/worn and used correctly? Is the work permit required, completed in full and sign-off obtained by all involved? Are all penetrations covered/cover secured – wording ‘hole below’? Are ladders stored/maintained/protected correctly?

11.0 Scaffold Are Scaftags/Registers in place (signed off) and current as required for inspection requirements? Is scaffolding erected where needed for the work activities? Is the scaffolding erected by

Competent/Certified persons? Are access to platforms in place, hand, mid-rails, toe boards in place secure and safe? Floor openings coverings – As above in 10.0 Working at height? Safety harness available, worn and used during erection of scaffolding?

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Note: Full compliance record Y=Yes and record positive findings – For partial compliance record N=No and record findings to correct. N/A Close-out Item Y Comments and Corrective actions if required By Initials N (date) Foundations support for type of scaffolding adequate for loading, sound and secure? Warning signage in place, visible to all workers and others? Is the Scaffolding adequate for the job/activities being carried out? The scaffolding complies with design drawings (Temporary Works)? What type of Scaffolding is provided – basic, special, suspended, hanging?

12.0 Excavations and Trenching Daily checks completed by competent person and recorded? Checks for underground services performed prior to excavation? Underground services located prior to excavation (hand digging, HydroVac)? Are sufficient and adequate barricaded in place to prevent falls into excavations? Are ladders used/secured for a safe means of access and egress in/out of excavation? Is the excavation >1.5 metres deep shored, battered benched? Is the excavated material away from the cut face (1 metre)? Is the excavation/trench width adequate for working activities? Is Air quality checks being done prior/during work activities and are the readings recorded? Is the excavation/trench Benching/Battering/Shoring adequate?

13.0 Formwork/Concrete Work Are design drawings available for the temporary works and sign-off obtained? Is the temporary works erected in accordance with design drawings? Is the temporary works inspected prior to and during pour? Is the Formwork In good order and safe condition?

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Note: Full compliance record Y=Yes and record positive findings – For partial compliance record N=No and record findings to correct. N/A Close-out Item Y Comments and Corrective actions if required By Initials N (date) Is the Formwork process/JSEA covers “do not drop” when being stripped? Penetrations covered and cover secured/fixed with words – ‘hole below’? All Vertical bars are covered and protected with anti-implament devices All waste concrete controlled and disposed of correctly?

14.0 Traffic Management

(Pedestrian and Vehicle) Traffic Management Plan(s) approved by the Engineer? Traffic control and signs checked every 2 hourly for compliance with the plan? Road traffic rules/signs being obeyed by workers and others? Barriers and signage adequate for the work activities? Are proactive measures in place to prevent pedestrians and vehicles entering active working areas? Parking rules are obeyed by workers and others? Speed limits obeyed by workers and others? Dust suppression systems being operated and adequate for the whole operation? Lighting available and adequate for the tasks during dusk/night operations? Driving habits being observed comply with on-site requirements? Haul roads sign posted, marked, maintained and have adequate edge bund for usage? Traffic awareness workshops held – Schools, churches, community meetings etc.? TMP distributed to all workers, drivers, operators working on- site? Are weekly safety awareness and enhancement meetings held and attended by everyone? Traffic light system used, maintained and is manned?

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Note: Full compliance record Y=Yes and record positive findings – For partial compliance record N=No and record findings to correct. N/A Close-out Item Y Comments and Corrective actions if required By Initials N (date) Maximum traffic diversions for work activities – 5 Km rural – 1 Km urban? Minimum lane width for traffic movement – single 3.5m – two- way 7.5m Roads maintained in a safe and trafficable condition at all times? Has the contractor prepared a response plan for deteriorating road conditions/environment? Has the Contractor prepared a detailed completion report?

15.0 Housekeeping Specific waste bins available and in place/used emptied/lids? Waste bins to segregated items used on-site (Wood, Steel Recycle)? All work areas are tidy and with safe access to all locations? On-site sewage/septic tanks are controlled and not allowed to overflowing? Walkways and passages demarcated/tidy/safe and maintained? Shelter from sun/rain provided and maintained? Signage legible, clean, visible and appropriate? Waste containers for cigarette butts provided and used? Lighting adequate provided within facilities and to work locations? Hi Glare locations identified, and workers advised/informed to avoided? Security site fencing installed around hazards/compound? Site fencing in good order and condition with appropriate signs advising “Authorised Entry Only”? Office areas in a clean, tidy and hygienic condition? Storage areas clearly defined, tidy and maintained? Appropriate signs to inform visitors, workers and others fixed and visible to all?

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Note: Full compliance record Y=Yes and record positive findings – For partial compliance record N=No and record findings to correct. N/A Close-out Item Y Comments and Corrective actions if required By Initials N (date) 16.0 Fire Prevention Adequate number of Fire extinguishers available and in place? All extinguishers have clear and ready access to uplift? All extinguishers inspection tags up to date? Appropriate signage in place to inform those in the area? Correct Firefighting procedure displayed? Emergency contact Numbers’ displayed (fire, ambulance, police)? No smoking enforcement/signs displayed? Extinguishers suitable type/size for environment? Company vehicles fitted with fire extinguishers? Emergency response plan displayed and understood by all in the area?

17.0 First Aid Facilities 1st Aid person(s) on site for the number of workers in the area? 1st Aid kit stocked, maintained and stocks are within expire date? Emergency contact numbers for first aiders is displayed around site? Signage for response is adequate and visible for all to see/read? All shifts operations are adequately covered? Emergency plan displayed and understood by all workers? A clinic provided with suitable equipment and staff to provide treatment for workers? Medical doctor appointed and a nurse with two years’ experience?

18.0 Health / Amenities Mess Rooms/Toilets clean, hygienic and tidy condition? Mess rooms and toilets adequate for numbers and size of workforce?

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Note: Full compliance record Y=Yes and record positive findings – For partial compliance record N=No and record findings to correct. N/A Close-out Item Y Comments and Corrective actions if required By Initials N (date) Female toilet provided with additional personal equipment provided? Soap and paper towels available and maintained? Wash your hands signs legible and displayed? Correct drinking water supply available? Food storage adequate for all types of environments? Quit smoking signage visible and displayed? Fitness for work signage visible and displayed? UV Protection cream available, used and maintained? Hazard/Incident reporting system in place? Vehicle available for treatment and transport of injured worker/visit to medical centre? The breeding sites (stagnant water ponds) for mosquitoes are eliminated? Is a medical clinic, with all necessary medication provided? Has any outbreak of illness of an epidemic nature occurred? Is a plan in place to manage an outbreak of illness?

19.0 Asbestos Removal JSEA prepared to cover the removal of asbestos and engagement of workers prior to it being issued? Is the correct PPE available and being used? Is the asbestos material being contained correctly? Are the correct disposal methods being used and the appropriate dockets available and completed in full)? Is the Asbestos Contractor an approved remover with current certification?

20.0 Lasers Is appropriate signage in place and visible to all in the area?

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Note: Full compliance record Y=Yes and record positive findings – For partial compliance record N=No and record findings to correct. N/A Close-out Item Y Comments and Corrective actions if required By Initials N (date) Is the equipment being used positioned so as Not erected at eye level? Has a Laser Safety Officer been appointed on-site for (class 2 or 3A)?

21.0 Noise Has a noise assessment been conducted to identify if any excessive levels exist? Has any personnel monitoring been carried out in noisy areas? Is the correct PPE available, been issued, worn and maintained by the workers and others? Is the correct signage erected to inform workers and others as required? Is a medical assessment conducted with each worker exposed to high noise levels?

22.0 Explosive Power tools Are Operators trained and hold the correct certification? Are warning signs visible and in place to warn workers and others? Is the correct PPE available, been issued, worn and maintained by the workers using the tool and other in close proximity? Is the tool placed in a secure container? Does the tool display and has current certification?

23.0 Confined spaces Has the Hazard/Risks been

Identified for the confined space? Has a JSEA been prepared with the engagement of the workers and, issued? Is air monitoring completed prior to entry and during work within the confined space and recorded? Is breathing apparatus available and used by workers and have they received the required training?

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Note: Full compliance record Y=Yes and record positive findings – For partial compliance record N=No and record findings to correct. N/A Close-out Item Y Comments and Corrective actions if required By Initials N (date) Is a rescue plan developed and appropriate rescue equipment available? Is an entry permit prepared and complete correctly? Are all those involved trained and competent workers for the confined space work? Standby/Spotter are in place and trained to respond? All Isolation of external hazards are in place, checked and verified complete? All workers familiar with confined space requirements?

24.0 Explosives Has a Blasting Management Plan been prepared and approved by the Engineer? Site location/plan approved by the

Engineer? Storage facility designed and approved for the explosives? Transportation of explosives is in compliance with legislative controls and procedures? Controls during blasting operations are in-place and effective? Blasting operations under the control of a qualified and certified Blaster? The Engineer is notified within the specified time-lines set within the contract? Buildings and services are provided with adequate protection to prevent damage from flying debris? All precautions are in-place to ensure no harm to individuals during blasting operations? Police control traffic movement within 400 m of the blasting operations? All signs are in place to warn others of the blasting operations? The use of a Vibro-metre is in place during blasting? Weather condition have been assessed (Lighting Storms etc.)?

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Note: Full compliance record Y=Yes and record positive findings – For partial compliance record N=No and record findings to correct. N/A Close-out Item Y Comments and Corrective actions if required By Initials N (date) 24.0 Other – Specify Activity: JSEA reviewed by all relevant workers? JSEA controls being implemented and review as required? Has the work environment changed since commencement? Does the JSEA require revision and has this been done on a regular basis?

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CLOSE OUT OF PREVIOUS CORRECTIVE ACTIONS

Have all the hazards/risks identified and documented in the previous site safety inspection checklist dated (insert date) ___/___/______been rectified.

Yes/No If No give details: -

Name: Signature:

Position: Date:

Reviewed by Project Manager.

Name: Signature:

Date:

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Annex 16. Pest Management Plan

A PMP should be prepared in all cases of significant direct purchasing and usage of pesticides or if significant pest management issues are anticipated in individual subprojects that are to be financed under Component 2 of the project. The applicants will be required to complete a pest management screening checklist (Annex 2, Form 1 Section 3.1) along with the matching grants application. This screening checklist will require information on the (i) significance of the pest management issues to be addressed (ii) type, amount and anticipated extent of usage of pesticides: (iii) proposed storage, disposal and usage practices to be employed; and (iv) potential environmental impacts. Based on a scoring scheme that is defined in this document, a determination would be made if a full blown PMP would be needed. The content of the PMP should apply to all the activities and individuals working. It should be emphasized also that non-chemical control efforts will be used to the maximum extent possible before pesticides are used. The PMP should be a framework through which pest management is defined and accomplished. The Plan should identify elements of the program to include health and environmental safety, pest identification, and pest management, as well as pesticide storage, transportation, use and disposal. The PMP is to be used as a tool to reduce reliance on pesticides, to enhance environmental protection, and to maximize the use of integrated pest management techniques.

The PMP shall typically contain pest management requirements, outlines the resources necessary for surveillance and control, and describes the administrative, safety and environmental requirements. The Plan should provide guidance for operating and maintaining an effective pest management program / activities. Pests considering in the Plan may be weeds and other unwanted vegetation, crawling insects and other vertebrate pests. Without control, these pests provoke plants’ deceases. Adherence to the Plan will ensure effective, economical and environmentally acceptable pest management and will maintain compliance with pertinent laws and regulations. The recommended structure of a PMP is presented in the Attachment 2.

Reviewing and approving PMP. As handling and usage of pesticides and other chemicals might cause harm to the environment and to the farmers’ health, in the case of such types of subprojects the beneficiaries have to prepare a PMP that is attached to the subproject proposal, including the following information: (a) types of pesticides and fertilizers and its amount; (b) storage conditions; (c) ways of field usage; (d) measures to be undertaken to control possible hazard scenarios; and (e) responsible person. The subproject proposal along with the PMP will be reviewed by the PFIs and by the RRA Environment Specialist who will provide his approval. These documents are also subject to World Bank prior review for the first two such types of subprojects from the each PFI. Based on experience of the RESP II, it is anticipated that the use of pesticides and pest management would not be significant and could be addressed through training, extension and technical support to improve farmer awareness on the safe application, storage and disposal of pesticides and the pest management through extension, training and demonstration in IPM approaches.

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Annex 17. Minutes of ESMF and RPF public consultations

Discussed main topics:

Project description and its components; potential planning project activities, national environmental, social legislation (about Land acquisition and resettlement) and relevant WB ESS requirements, identified social and environmental impacts and mitigation measures, safeguards documents needed to be developed under the RED for each sub-project, type of land acquisition and resettlement impacts, the content of RPF and RAP; eligible for compensation people, impacts and losses subject for compensation; GRM; assistance to vulnerable and severally affected households; further stages of the final RAP preparation if any impact; evaluation of compensation; further stages of the Project implementation;

Raised issues and provided answers: Question/comments Answer Due to the nature of tourism and city infrastructure Yes, you are absolutely right that we may expect improvement activities I suspect there will be a lot of complaints from the participating cities population. As we complaints from the population. presented, the Beneficiaries Feedback Mechanism (BFM) will be established by Implementing Agency – ARIS in order to manage grievances from the population. Project works related to internal roads construction or Sure, during the any project activity road construction or placement of water and sewerage pipes may force to water pipes route design stage an inventory of all trees will cut the trees and will project consider any trees be conducted and replacement will be done with ration 1:2. replantation? Are there any cost-sharing requirements for the Yes, surely project has cost-sharing element for the country or for the project beneficiaries? Are there any country. sub-loans or grants requirements? Currently Project Administration Manual (PAM) is under preparation and it will stipulate necessary requirements for loans and grants co-financing elements, since any proposal submitted for funding have to be economically feasible, since you will apply for loan. In any case, when this project will be launched you can discuss your proposal with Agency and FIs specialists and try to apply for the sub-loan.

Regarding the project components, what are the As it was presented, the project will have three priority directions within the components? components. Component 1 will support capacity building activities that would strengthen the role of the local, regional and central governments in tourism, urban development and agriculture. Components 2 aims to strengthening agri-food supply chains and improve access to finance and Component 3 will support stimulation of investments for tourism and urban development.

Will this project pay attention to the environmental Yes, this impact was also reviewed during ESMF side of the agricultural sub-loans? Since population development and ESMF document has certain section on may complain on location of livestock farms. impacts from agricultural activities of the projects and necessary mitigation actions were also provided. As a mitigation measure it was proposed to check of potential sub-loans on meeting environmental protection requirements. Also, project will train and provide adequate instruments for participating PFIs on screening and monitoring agricultural sub-loans. It is very good that you will request to conduct ESA Yes, environmental screening and ESA will be mandatory for the sub-loans. We had evident in the near past, for all sub-loans. when big enterprises were built without proper EA, as a result the enterprise negatively impacted on the people living in surrounded area. Finally, the enterprise had to be moved to another place.

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What is the project implementation period? It is expecting that project will start in 2021 and duration of the project so far is planned for six years. But this will be clear after finalization of the project.

Will this project only be implemented in Osh oblast or This project is designed for implementation only for Osh in the whole country? oblast within the frame of Regions Development Program. However, after successful implementation it can be replicated in Batken and Naryn Oblasts as well. Representative of Disabled Society of Osh oblast, will Unfortunately, project is designed to finance tourism and this project finance business project on establishment agriculture related projects and project may consider if of sewing shop by our Society? your society will propose projects related to tourism sector, i.e. handicrafts shops or something else.

Representative of Disabled Society of Osh oblast, one The aim of this event today was to hear all stakeholders’ more question, will this project consider provision of questions and suggestions. Surely, project designs of the comfort conditions for disabled people in the cities’ tourism and transport infrastructures for rehabilitated tourism and city infrastructures, since rehabilitation will consider creation of favorable there are no such conditions available in the city conditions for disabled people. infrastructures now not talking about tourist sites.

We have problem with hills erosion in Alay district It is unlikely, since the project will support and in the oblast well, so will this project finance entrepreneurship development. For the sub-project that plantation of trees which require less irrigation water you mentioned you may apply for other environmental in order to diminish erosion issues in the oblast. Will funds such as GEF and others. it be possible? What are the requirements on collateral on sub-loans? Now the project is on preparation stage. The procedure of sub-loans application and approval will be established by PFIs. More clarifications you can later get from Agency. What organization is responsible for covering the As stated, before the valuation will be carried out based on independent valuators services cost? Who will cover defined entitlement matrix in accordance with compensation costs? requirements of ESS5 and national legislation. PIU will involve independent licensed appraisal company for the valuation of compensation and allowances for all type of losses, and the cost of appraisal will be covered by the Project. Compensation costs of land acquisition or involuntary resettlement will be covered from the Municipalities budget.

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Photos:

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Lists of participants

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