Page 1 INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC2322 Date ISDS Prepared/Updated: 09/06/2006 I. BASIC INFORMATION A. Basic Project Data Country: Russian Federation Project ID: P100563 Project Name: Microfinance Infrastructure Development Project Task Team Leader: Samir M. Suleymanov Estimated Appraisal Date: January 10, 2007 Estimated Board Date: July 17, 2007 Managing Unit: ECSSD Lending Instrument: Specific Investment Loan Sector: Micro- and SME finance (100%) Theme: Other financial and private sector development (P);Rural markets (P);Rural services and infrastructure (S);Regulation and competition policy (S) IBRD Amount (US$m.): 50.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER 50.00 50.00 B. Project Objectives [from section 2 of PCN] The Objective of the proposed World Bank Project on Microfinance Infrastructure Development would be to assist the Government in developing a sustainable, safe and sound national financial cooperative system in order to enhance access to financial services by the poorer and underserved segments of the population, especially in the rural areas. Under this overarching objective the Project would aim to: (a) provide assistance to develop and implement an appropriate legal and regulatory framework; (b) establish an integrated system of FCs through technical assistance, institution building, and infrastructure support; and (c) strengthen the technical capacity of the financial cooperative system. C. Project Description [from section 3 of PCN] Component 1: Enabling Environment for the Financial Cooperative System. The project would support the creation of an enabling legal and regulatory framework for the FC system through: (i) Establishing a Single Regulatory Body responsible for supervising, monitoring, developing and implementing the Federal Law, and the management of a unified information system on financial cooperatives. The subcomponent would include a comprehensive training program for Page 2 the staff of the Regulatory Body to perform its functions, and a capacity building program on supervision; (ii) Improving the Legal Framework governing cooperatives, focusing on clarifying the status, attributes, and roles of the FC system; as well as strengthening the role and capacity of contributing elements, such as credit bureaus and rating services. Component 2: Institutional Development. The project would support the transition of the financial cooperative system to new legislation, standards, norms, rules and regulations. Special monitoring indicators would be developed to assess the performance of these cooperatives and their impact. The Component would include (i) Technical Assistance to Financial Cooperatives for the consolidation and integration of this industry and the development of the institutional structure for the cooperative system, based on the newly developed laws and regulations; (ii) TA and Training system for Cooperative Staff in such areas as credit evaluation, risk assessment, financial management, accounting, asset liability management, governance, agricultural credit and services tailored to rural areas, and impact assessment; as well as the establishment of training centers; (iii) Assistance in the Establishment of a Mutual Insurance System, including the development of norms and standards for a unified specialized system of deposit insurance; and strengthening the current system of credit disability and life insurance; (iv) Audit Capacity Development; and (v) The Establishment and Licensing of Central Liquidity Funds. Component 3: IT Capacity Development. The project would provide for the design and implementation of an internet based platform for financial management, accounting, and monitoring of FCs, with real-time access for the regulator and relevant service groups. The component would finance the design and implementation of required software systems, and installation of essential hardware. Institutional and member information would also be made available for agricultural marketing and communications purposes. Component 4: Project Management, Monitoring, and Evaluation. This component would finance the project management function, as well as periodic monitoring and evaluation. This would be undertaken by a Project Management Unit (PMU) selected by the Ministry of Finance. An Inter-Agency Working Group would be established to oversee project implementation. Further implementation arrangements would need to be discussed to ensure that the views of the cooperative system are reflected in project design and implementation. D. Project location (if known) To be determined. It is planned so far that the Project would be implemented nation-wide, starting with areas with well-developed cooperative systems. E. Borrower’s Institutional Capacity for Safeguard Policies [from PCN] To be determined. The Borrower, through the establishment of project management unit will develop/acquire adequate capacity for implementation of a project of this type. The Ministry of Finance (MOF) has been designated as a counterpart for the project. Project Management Unit staff will be trained to carry out the evaluation and monitoring of project activities according to environmental safeguards if any. F. Environmental and Social Safeguards Specialists Ms Maria L. Amelina (ECSSD) Page 3 Mr Vladimir V. Tsirkunov (ECSSD) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X Environmental Category: C - Not Required III. SAFEGUARD PREPARATION PLAN A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: 10/05/2006 B. For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS: N/A C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing 1 should be specified in the PAD-stage ISDS. No specific safeguard related studies are yet needed. IV. APPROVALS Signed and submitted by: Task Team Leader: Mr Samir M. Suleymanov 08/29/2006 Approved by: Regional Safeguards Coordinator: Mr Ronald N. Hoffer 09/05/2006 Comments: Cleared as a "C" assuming only very minor renovation is required for IT equipment installation. Sector Manager: Ms Marjory-Anne Bromhead 09/05/2006 Comments: 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. Page 4