INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA8299 Public Disclosure Copy Date ISDS Prepared/Updated: 27-Mar-2014 Date ISDS Approved/Disclosed: 26-Mar-2014, 28-Mar-2014 I. BASIC INFORMATION 1. Basic Project Data Country: China Project ID: P144270 Project Name: China Economic Transformation and Institutional Capacity Building (P144270) Task Team Chorching Goh Leader: Estimated 26-Mar-2014 Estimated 22-May-2014 Appraisal Date: Board Date: Managing Unit: EASPC Lending Investment Project Financing Instrument: Sector(s): Central government administration (60%), Sub-national government administration (40%) Theme(s): Macroeconomic management (45%), Other public sector governance (15%), Environmental policies and institutions (20%), Social safety n ets (20%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Public Disclosure Copy Financing (In USD Million) Total Project Cost: 36.70 Total Bank Financing: 35.00 Financing Gap: 0.00 Financing Source Amount Borrower 1.70 International Bank for Reconstruction and Development 35.00 Total 36.70 Environmental B - Partial Assessment Category: Is this a Yes Repeater project? 2. Project Development Objective(s) Project Development Objectives are to (i) inform China’s policy making and (ii) strengthen capacity to implement priority reform areas articulated in China’s Five-Year Plans. 3. Project Description Page 1 of 5 Building on the experiences of previous technical cooperation projects, the proposed project intends to establish a simpler and more manageable component structure to promote smoother implementation. To allow flexibility to adapt to rapid changes in China’s economic and social Public Disclosure Copy landscape in the coming years, the project is structured into two components: (A) Analytical outputs (viz. knowledge product generation and dissemination); and (B) Implementation support, project management, and capacity building activities. Component A. Analytical Outputs (Knowledge products generation and dissemination) Types of analytical outputs include sectoral research, technical studies, and topical reports. The following six thematic areas will be priorities anticipated in China’s development: 1. Fiscal and financial reform 2. Economic restructuring 3. Rural and urban integration 4. Green economy 5. Reforms in the innovation eco-system 6. Public services (education, health care, and social welfare.) Component B. Implementation Support, Project Management and Capacity Building Activities Activities to be supported include: 1. Various types of training and knowledge sharing (local/abroad) 2. Overseas study in technical areas and scholarships for professional development of senior officials in foreign universities/institutes. 3. Secondment programs to international organizations 4. Institution building (e.g., workshops, seminars, and courses) 5. Information platforms and information systems Management 6. Implementation support at the central and also subproject levels (e.g., financial management, Public Disclosure Copy budget oversight and disbursement, record keeping, procurement, monitoring and evaluation) The project implementation is expected to take place over a five-year period. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) National wide. Feng Ji ( EASCS ) Zeng Jun ( EASCS ) 5. Environmental and Social Safeguards Specialists Feng Ji (EASCS) Jun Zeng (EASCS) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes See Section II.A(1) BP 4.01 Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Page 2 of 5 Pest Management OP 4.09 No Public Disclosure Copy Physical Cultural Resources OP/ No BP 4.11 Indigenous Peoples OP/BP 4.10 No According to the project design, the project will not support policy studies in areas that indigenous people communities as defined by the Bank’s OP4.10 are collective attached to, or present in or not. Involuntary Resettlement OP/BP No Due to the nature of the project, it is not expected 4.12 that the project will support any civil works, or directly lead to investment on any civil works. Involuntary resettlement is not expected. Safety of Dams OP/BP 4.37 No Projects on International No Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No 7.60 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Public Disclosure Copy Environmental safeguards The project mainly supports technical assistance activities on reform facilitation and policy research. No civil works will be financed under the project. Samples of potential sub-projects proposals (i.e. research/study) were reviewed by the Bank team. It is found that police recommendations may have some environment and social impacts, especially on theme 3 (rural and urban integration) and 4 (green economy). Environmental Assessment (OP4.01) is triggered. The project is classified as a Category B project. Social safeguards Due to the nature of the project, it is not expected that the project will support any civil works, or directly lead to investment on any civil works. Involuntary resettlement is not expected. The project will be implemented in phases and the first batch is identified and selected during project preparation. The first batch of project will not support policy studies in areas that indigenous people communities as defined by the Bank’s OP4.10 are collective attached to, or present in or not. However, it is not yet clear whether other batches of the project will support policy studies in areas that IP communities are present in or not. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: See Section II A(1) Page 3 of 5 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A Public Disclosure Copy 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. Given that sub-projects will be identified and proposed for financing on an annual-basis during the implementation, the project uses a framework approach, which is a flexible project design used when the principles of a project and the criteria for sub-project selection are determined before appraisal, but individual activities cannot be identified and appraised before the World Bank’s Board of Directors approves the project. To support this framework approach, an Environmental and Social Management Framework (ESMF) has been prepared and will be incorporated into the Operation Manual. The ESMF will guide the environment and social safeguard compliance during implementation of sub-projects. All subprojects will be screened for potential environmental and social impacts, and mitigation and management measures will be developed in line with the agreed ESMF. Environmental and social impact screening, mitigation and management measures development and implementation will follow these steps: Step 1 - Screening for potential environmental and social safeguard impacts and proposing safeguards documents required according to Chinese regulations and World Bank policies; Step 2 - Review of the safeguards screening and determination of the safeguards documents; Step 3 - Preparation of safeguard documents, consultation and disclosure; Step 4 - Review and clearance of the safeguard documents, and supervision; The ESMF defines the roles and responsibilities of the PMO, SMOs in implementation and supervision of sub-projects. The PMO will be responsible for safeguards screening, for proposing the categorization of each sub-project, and for supervising of the preparation of the safeguards instruments. The choice of instruments for each sub-project depends on the nature and magnitude Public Disclosure Copy of its potential impacts. SMOs would be responsible for preparing all safeguards instruments. Capacity building activities may include (i) engagement of experienced environmental and social experts; and (ii) safeguards training on environmental and social safeguards policies, good practices, implementation supervision and monitoring. PMO, under the International Department of the Ministry of Finance, PRCs, have worked on previous similar projects (e.g. TCC5). PMO is familiar with domestic environmental and social safeguards policies which are close to Bank policies. A recent due diligence review of the safeguards issues have been conducted for all sub-projects implemented under TCC5. It was confirmed that no outstanding safeguard issues were found. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders include central Governmental department, provincial and municipal/ prefecture level governments, academies, and sectors etc. During the project preparation of ESMF, and the stages of the project design, public consultations were conducted. The ESMF specifies that public consultation is requested for the safeguards documents for subprojects, where applicable. The ESMF was locally disclosed on March 21, 2014 on the website of MOF and at the Bank InfoShop on March 21,2014. B. Disclosure Requirements Page 4 of 5 Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 21-Mar-2014 Date of submission to InfoShop 21-Mar-2014 Public Disclosure Copy For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure China 21-Mar-2014 Comments: If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Public Disclosure Copy Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader: Name: Chorching Goh Approved By Regional Safeguards Name: Mary C.K. Bitekerezo (RSA) Date: 27-Mar-2014 Advisor: Sector Manager: Name: Sudhir Shetty (SM) Date: 28-Mar-2014 Page 5 of 5