BiH WATER AND SANITATION SERVICES MODERNIZATION PROJECT ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK FOR REPUBLIKA SRPSKA December 2020 BiH WATER AND SANITATION SERVICES MODERNIZATION PROJECT ESMF RS Table of Contents 1 EXECUTIVE SUMMARY.............................................................................................................................6 2 INTRODUCTION ..................................................................................................................................... 11 2.1 Brief Project Description ........................................................................................................................ 11 2.1.1 Objectives ..................................................................................................................................... 11 2.1.2 Components .................................................................................................................................. 11 2.1.3 Risk rating ..................................................................................................................................... 12 2.1.4 Implementation Arrangements .................................................................................................... 12 2.1.5 Timeline ........................................................................................................................................ 12 2.2 Objectives of this Environmental and Social Management Framework ................................................ 13 2.3 Basic Information About the Project Area ............................................................................................. 13 3 BASELINE ENVIRONMENTAL CHARACTERISTICS OF THE PROJECT AREA ................................................ 16 3.1 Geographic, Topographic and Geological Characterization ................................................................... 16 3.2 Climate ................................................................................................................................................... 17 3.3 Climate Change ...................................................................................................................................... 18 3.4 Water Quality ......................................................................................................................................... 20 3.4.1 General information ..................................................................................................................... 20 3.4.2 Use of freshwater resources ......................................................................................................... 21 3.4.3 Urban waste waters ...................................................................................................................... 23 3.4.4 Surface water quality .................................................................................................................... 24 3.5 Waste Management ............................................................................................................................... 25 3.6 Biodiversity and Protected Areas ........................................................................................................... 26 3.6.1 Habitats and Flora ......................................................................................................................... 26 3.6.2 Fauna ............................................................................................................................................ 27 3.6.3 Protected Areas ............................................................................................................................ 29 3.6.4 Potential Natura 2000 sites .......................................................................................................... 30 3.7 Cultural and Historical Heritage ............................................................................................................. 32 4 BASELINE SOCIO-ECONOMIC CHARACTERISTICS OF THE PROJECT AREA ................................................ 33 4.1 Demography ........................................................................................................................................... 33 4.1.1 Demography in Municipalities/Cities covered by the Project during the First Year ..................... 34 4.2 Rural and Urban Areas ........................................................................................................................... 34 4.2.1 Rural and Urban Areas in Municipalities/Cities covered by the Project during the First Year ..... 34 4.3 Key Economic Indicators ........................................................................................................................ 34 4.4 Local Economy of the Project Area ........................................................................................................ 35 4.4.1 Local Economy in Municipalities/Cities covered by the Project during the First Year.................. 35 i BiH WATER AND SANITATION SERVICES MODERNIZATION PROJECT ESMF RS 4.5 Impacts of Climate Change and Water Pollution on Local Economy ..................................................... 36 4.6 Employment ........................................................................................................................................... 36 4.7 Poverty ................................................................................................................................................... 37 4.8 Labor Conditions .................................................................................................................................... 37 4.9 Main Gender and Citizens Engagement Gaps Relevant to this Project .................................................. 38 4.10 Gender-based Violence, Sexual Harassment, Sexual Exploitation and Abuse ....................................... 39 4.11 Vulnerable Groups.................................................................................................................................. 39 5 LEGAL FRAMEWORK .............................................................................................................................. 41 5.1 The World Bank Requirements .............................................................................................................. 41 5.1.1 The World Bank Environmental and Social Framework (2016) .................................................... 41 5.2 Overview of Environmental and Social Requirements ........................................................................... 46 5.2.1 Environmental Assessment Procedure ......................................................................................... 46 5.2.2 Waste Management Regulations.................................................................................................. 48 5.2.3 Water Management Regulations .................................................................................................. 49 5.2.4 Construction Regulations .............................................................................................................. 49 5.2.5 Land acquisition ............................................................................................................................ 50 5.2.6 Regulations on Working Conditions ............................................................................................. 50 6 INSTITUTIONAL STRUCTURE .................................................................................................................. 52 6.1 BiH Level Institutions .............................................................................................................................. 52 6.2 RS Level Institutions ............................................................................................................................... 52 7 ENVIRONMENTAL AND SOCIAL RISK ASSESSMENT ................................................................................ 54 7.1 ESSs Relevant to the Project ................................................................................................................... 54 7.2 Preliminary Identification of Potential E&S Impacts .............................................................................. 55 7.3 Environmental and Social Requirements for the Project ....................................................................... 59 7.4 Environmental and Social Screening Process (Step-by-Step) ................................................................. 63 7.5 Labor Management ................................................................................................................................ 69 7.6 Monitoring and Reporting ...................................................................................................................... 70 8 PUBLIC CONSULTATIONS PROCESS ........................................................................................................ 71 ANNEXES ....................................................................................................................................................... 72 A. Sites of Cultural and Historical Heritage in Municipalities of the RS ...................................................... 73 B. Generic Environmental and Social Management Plan for the Project ................................................... 75 C. Indicative outline of ESIA .......................................................................................................................