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ASSESSMENT of ENVIRONMENTAL and SOCIAL SYSTEM AGAINST Pforr POLICY and DIRECTIVE

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ASSESSMENT of ENVIRONMENTAL and SOCIAL SYSTEM AGAINST Pforr POLICY and DIRECTIVE Public Disclosure Authorized People’s Republic of China Hunan Subnational Governance and Public Service Delivery Program Environment and Social Systems Assessment (ESSA) Public Disclosure Authorized (Draft) November 2020 Public Disclosure Authorized Prepared by the World Bank Public Disclosure Authorized I Acronyms CEB County Education Bureau CEM Community Engagement Manual COP Construction Organization Plan COVID-19 Coronavirus Disease 2019 CPMO County Program Management Office CTB County Transport Bureau DLI Disbursement–Linked Indicators DRC Development and Reform Commission EEB Ecology and Environment Bureau EHS Environmental, Health and Safety EIA Environmental Impact Assessment EPL Environmental Protection Law ESSA Environmental and Social Systems Assessment GBV Gender-based violence GIIP Good International Industrial Practice GRM Grievance Redress Mechanism HLG High-Level Government LURPI Land Use for Rural Public Infrastructure HPMO Hunan Program Management Office MEE Ministry of Ecology and Environment MEP Ministry of Environmental Protection MNR Ministry of Natural Resources MWR Ministry of Water Resources NDRC National Development and Reform Commission NHC National Health Commission NHFPC National Health and Family Planning Commission NPC National People’s Congress MOC Ministry of Construction MOEM Ministry of Emergency Management MOF Ministry of Finance MOR Ministry of Railway MOT Ministry of Transport OHS Occupational Health and Safety PAP Program Action Plan PAGS Provincial Administration of Government Services PC People’s Congress PDO Program Development Objective PDOE Province Department of Education PDOF Province Department of Finance PDOT Province Department of Transport PDRC Province Development and Reform Commission PFM Public Fiscal Management PforR Program for Results PMO Program Management Office PPE Personal Protection Equipment QSSS Quality and Safety Supervision Station SC State Council SA Social Assessment SAWS State Administration of Work Safety SOP Standard Operating Procedure II TABLE OF CONTENTS EXECUTIVE SUMMARY ................................................................................................................... 1 SECTION I: INTRODUCTION .......................................................................................................... 6 1.1 Objective and Scope of the ESSA .................................................................................... 6 1.2 Methodology .................................................................................................................... 6 SECTION II: PROGRAM DESCRIPTION ..................................................................................... 8 2.1 Program Background........................................................................................................ 8 2.2 The PforR Program ........................................................................................................ 10 2.3 Institutional Arrangement .............................................................................................. 12 SECTION III: POTENTIAL ENVIRONMENTAL AND SOCIAL EFFECTS .................... 13 3.1 Environmental and Social Screening ......................................................................... 13 3.2 Environmental and Social Context ............................................................................. 13 3.3 Potential Environmental and Social Benefits and Risks .......................................... 15 SECTION IV: ENVIRONMENTAL MANAGEMENT SYSTEM ........................................... 20 4.1 Legal Framework Applicable to the PforR .................................................................... 20 4.2 Implementation of Environmental Management Systems ............................................ 31 4.3 Environmental Management Agencies and Capacity .................................................... 35 SECTION V: SOCIAL MANAGEMENT SYSTEM.................................................................... 40 5.1 Legal Framework Applicable to the Program ........................................................... 40 5.2 Implementation of Social Management Systems ....................................................... 47 5.3 Performance of Social Safeguards Management Agencies and Capacity ............... 54 SECTION VI: ASSESSMENT OF ENVIRONMENTAL AND SOCIAL SYSTEM AGAINST PforR POLICY AND DIRECTIVE ............................................................................. 58 6.1 Assessment of Environmental Management Systems against Core Principles ...... 58 6.2 Assessment of Social Management Systems against Core Principles ...................... 60 SECTION VII: STAKEHOLDERS CONSULTATION ............................................................. 68 SECTION VIII: CONCLUSIONS AND RECOMMENDATIONS .......................................... 69 Annex 1: Environmental and Social Risks Screening ................................................................... 72 Annex 2: List of Applicable Environmental and Social Laws and Regulations ..................... 75 Annex 3: Summary of Consultation Workshop ............................................................................. 83 Annex 4: OHS Guidelines for Civil Works ..................................................................................... 90 Annex 5: Template of the Community Engagement Manual (CEM) ....................................... 94 III IV EXECUTIVE SUMMARY This report summarizes the key findings and recommendations of the Environmental and Social System Assessment (ESSA) for the proposed Hunan Subnational Governance and Public Service Delivery Program for Results (the Program). The Program will strengthen institutions for intergovernmental fiscal management and delivery of key rural services in Hunan Province, with due attention to the equity and quality of road services and compulsory education in eight pilot counties1. The proposed PforR is expected to contribute to two result areas: Results Area 1: Strengthened institutions for intergovernmental fiscal management and transparency. This Result Area will contribute to enhancing the fiscal sustainability and enabling strategic allocation of public finance. The interventions supported under this result area focus on addressing the intergovernmental fiscal management challenges to unleash the PFM enhancement at county level. Results Area 2: Result–oriented financing for enhanced public services. The result area 2 will contribute to improved intergovernmental management and transfers to improve service delivery in rural roads and compulsory education. RA 2.1 Enhanced asset management and financing of rural roads will support a shift away from higher level provincial mandates for new road construction to a set of enabling measures that would allow the counties to re-balance expenditures towards asset management, thus contributing to sustainable rural transport services provision, expenditure efficiency, and fiscal sustainability. RA 2.2 Enhanced result-oriented financing of compulsory education aims to promote equitable and effective compulsory education in rural counties by supporting the province in strengthening intergovernmental fiscal transfers for compulsory education and conducting annual comprehensive evaluation of education performance in the eight participating counties. Implementation of activities under the Program will rely on the existing national and provincial legal frameworks and institutional system for managing environmental and social aspects. The purpose of this ESSA is to provide a comprehensive review of relevant environmental and social systems and procedures in China and Hunan, identify the extent to which the national and provincial systems are consistent with the PforR Bank Policy and the PforR Bank Directive, and recommend necessary actions to address identified gaps as well as opportunities to enhance performance during implementation. Potential Environmental and Social Effects An environmental and social risk screening has been conducted for the Program-supported activities during preparation of the ESSA, which concluded that the overall environmental and social risks of this Program are rated as moderate. Program Environmental Benefits and Risks The physical activities under the Program will focus on rehabilitation and maintenance of rural roads and improvements of rural school conditions (infrastructure and equipment). The proposed Program is expected to have environmental benefits of increased road and traffic safety to rural communities. Additionally, this operation will contribute to the resilience of rural roads to natural disasters (e.g., floods and landslides) through improved management and adequate maintenance of road assets. The anticipated adverse environmental effects of the Program are not expected to be significant considering the nature and limited scale of physical activities involved, and the exclusion of activities that might be located in sensitive environmental areas. Typical environmental impacts are mostly related to construction activities which are likely to be temporary and site-specific. Potential environmental impacts of the Program include: temporary impacts of dust, noise, waste disposal and traffic disturbance during construction; temporary soil erosion and limited loss of surface vegetation; temporary and limited disturbance to wildlife; small labor influx and community disturbance; occupational health and safety issues; potential impacts on chance-find physical cultural resources;
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