The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) Integrated Safeguards Data Sheet Restructuring Stage Restructuring Stage | Date ISDS Prepared/Updated: 28-Nov-2018| Report No: ISDSR26134 Regional Vice President: Hafez M. H. Ghanem Country Director: Elisabeth Huybens Senior Global Practice Director: Riccardo Puliti Practice Manager/Manager: Charles Joseph Cormier Task Team Leader: Alassane Agalassou The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) . I. BASIC INFORMATION 1. BASIC PROJECT DATA Project ID Project Name Access to Basic Services in Rural Areas and Capacity P144135 Building Project Task Team Leader(s) Country Alassane Agalassou Gabon Approval Date Environmental Category 17-Sep-2015 Partial Assessment (B) Managing Unit Is this a Repeater project? GEE07 PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 60.00 Total Financing 60.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 60.00 2. PROJECT INFORMATION Current Project Development Objective The project development objectives (PDO) are to expand access to water and energy services in targeted rural areas and to establishmechanisms to improve sustainability of service provision. . The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) A. PROJECT DESCRIPTION 1. The project has the following three components: a. Component A: Expansion of access to basic services in rural areas by providing access to electricity and water in targeted rural areas (individual and social-public areas), through: (i) rehabilitation and construction of rural electrification infrastructure, including installation of solar home systems and mini-grid solutions; (ii) construction and installation of wells and water pipes for drinkable water; and (iii) provision of goods and equipment required for the purpose. b. Component B: Implementation support, supervision and monitoring and evaluation (M&E) by: (i) Carrying out a program of activities aimed at ensuring sustainability in the electricity and water sector, through capacity building and technical assistance in technical, financial and contractual areas to key selected actors. (ii) (a) Development and completion of a master plan for access to basic services in the Borrower's rural areas covering, inter alia, rural electrification and water supply and related technical options on a village-by-village basis; (b) development of related environmental and social impact studies; and (c) provision of engineering expertise for implementation support purposes.(iii) Development and implementation of a communication, education and awareness program in targeted rural areas, including the implementation of a health campaign aimed at raising awareness on the benefits of clean water. (iv) Support to the Borrower in the areas of Project coordination, supervision, financial management, procurement, monitoring and evaluation, audits, and preparation and supervision of implementation of the Safeguards Instruments and preparation of related surveys, including through the provision of Training, Operating Costs, goods and services for the required purpose c. Component C: Capacity building and sectoral technical assistance by: (i) Strengthening the capacity of the MERH, CNEE, ARSEE and private operators to better manage the energy sector by developing and implementing a module-based training program (including on-the-job daily training and workshops) in the areas of, inter alia, planning, operation and maintenance, and management of basic rural services. (ii). Carrying out a program of activities aimed at assisting the MERH in strategic decision making and implementation in related sectors through, inter alia: (i) provision of technical assistance; (ii) development of electricity and water codes; (iii) update of the national electricity transmission and generation master plan; and (iv) the preparation of analytical and sector work focused studies. 2. While Components B and C have registered improvement in implementation progress since 2017 when the loan agreement was declared effective, the implementation of Component A has not advanced notably to comply with the disbursement conditions in the Loan Agreement. 3. The Project was designed to be a cornerstone operation for a larger rural water and electrification program to be financed by the Government of Gabon (GoGA) and other donors and to finance broader sector analytics to support the GoGA’s efforts to establish sector reforms and sustainability of overall service The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) provision in the water and energy sectors. As such, the project aims to finance a new model to create a market for basic water and energy services in rural areas based on two pillars: (a) delegation of responsibility for service provision to specialized O&M operators; and (b) sustainable long-term financing combining cost recovery and subsidies. The project’s focus is on villages located outside of the SEEG (national Water and Electricity utility) perimeter that are too distant from urban and peri-urban areas to be connected to the water and electricity networks in five years’ time starting 2015. Water and electricity services will be provided to households and to public buildings (for example, schools, clinics, community centers, police stations, and religious buildings) under the Project. Streets lighting will also be supported under the Project B. PROJECT STATUS Overall 4. Progress towards achievement of PDO has been very slow due to lack of progress in the major Component A (Expansion of access to basic services in rural areas) representing 75 percent of the financing due to non-compliance with the disbursement conditions of that component. The Loan Agreement stipulates that no withdrawal shall be made under Category (1), until and unless the Borrower has: (a) recruited the first O&M Operator; and (b) prepared and submitted to the Bank an O&M Financing Framework, in form and substance acceptable to the Bank. The Borrower has not recruited an O&M operator and has not submitted a satisfactory O&M Financing Framework. The GoGA recently indicated its willing to adopt a new and sustainable operation and maintenance mechanism utilizing SEEG (Société d’Eau et de electricity du Gabon) as the new operator of rural investment to be done under the project. Overall disbursements of the Project are approximately 23.9 percent (US$14million) after two years of implementation. Most of the disbursements have occurred in the latter half of FY18. DESCRIPTION OF PROPOSED CHANGES 5. This Restructuring Paper proposes to restructure the Project as follows: 6. Original design: The Project was originally designed to finance a new model to create a market for basic water and energy services in rural areas based on two pillars: (i) delegation of responsibility for service provision to specialized O&M operators; and (ii) sustainable long-term financing combining cost recovery and subsidies. The O&M operators were to be competitively selected and were to be in charge of installing equipment (including rehabilitation of old systems), carrying out O&M, and recovering payment for service in their regional service areas. In addition, the Project’s focus was on villages located outside of the SEEG perimeter that are too distant from urban and peri-urban areas to be connected to the water and electricity networks. 7. This design will be changed under the restructuring. The Project will not delegate responsibility for service provision to specialized O&M operators. Going forward, SEEG, will be responsible for O&M of service The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) provision. This includes maintaining assets constructed under component A and applying national tariffs to the provision of electricity and water services. The Project will finance activities in localities where the SEEG grid can be extended and decentralized localities that will be managed by SEEG. This means some initial localities that are too distant from SEEG coverage will be dropped. 8. Change in sustainability mechanism of assets financed by the project: the new mechanism will be based on the “centralized� approach through extension of SEEG’s concession to villages that will be connected through extension of existing networks of SEEG or decentralized electrified localities. Once connected, these localities are included de facto within the concessionary area and their management is transferred to the SEEG. The regional Directorate of SEEG will oversee operation and maintenance of rural localities inclusive of the assets financed under this project through its decentralized departments in each province of Gabon. These departments are responsible for operation and maintenance of water and electricity assets and delivery of basic services to customers in urban and rural areas in each province of Gabon. These departments will be reinforced to better carry out operation and maintenance activities in all project areas. 9. Component A: (i) This Component will no longer finance installation of solar home systems since remote small localities with few people have been dropped under the new design. In addition, since O&M operators will not be utilized, SEEG will be technically involved in the implementation of these activities. The new design will adapt the rural electrification model and project areas accordingly by integrating grid extension electrification under this component, incorporating additional new localities and dropping other localities in the pilot areas; and (ii) the Component will finance new activity on rehabilitation and extension of water networks in rural localities operated by SEEG to provide sufficient potable water to the rural population; and (iii) will support human capital development through financing water points and latrines to schools and health centers. 10. Component B: No activity will be dropped. 11. Component C: No activity will be dropped. A new activity will be financed under this Component, namely, provision of advisory services for the SEEG reforms. This new activity help GoGA to have onboard a reputable international advisory firm to support SEEG’s reforms. 12. Implementation Arrangements: The institutional arrangements will be revised to include SEEG in the steering committee of the project and as technical focal point for implementation of activities under Component A. SEEG will provide technical assistance for network extension activities and mini-grids and water supply activities. The PIU will continue to be responsible for the Project’s technical and fiduciary aspects. 13. Safeguards implementation from 2014 to 2018: The borrower prepared an Environmental and Social Management Framework (ESMF) for the parent project. The ESMF reviewed and approved by the Bank and disclosed in-country and at the Bank’s InfoShop on October 9, 2014. The ESMF sets forth guidelines and procedures for the environmental and social screening process and the preparation of Environmental and Social Impact Assessments (ESIAs) for sub-projects/site specific ESIA. As per ESMF requirements, the environmental and social screening of some subprojects in 44 localities (these localities are no longer The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) considered in this restructuring) was carried out in December 2017 and ToR for an ESIA submitted for NO on January 12, 2018. However, the preparation of these instruments is still pending for the purpose of structuring and change of project areas and civil works were not undertaken. Grievance Redress Mechanism was elaborated by the PIU and will integrate a communication plan and specific gender and GBV’s arrangements to ensure that all stakeholders are actively involved in project’s activities and are fully aware of all grievance’s uptake channels and management mechanisms. To bolster implementation of the safeguard instruments, the PIU, in July 2018, recruited an Environmental Specialist and a Social development Specialist on a full-time basis. . 1. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN) Location: Rural Areas and peri-urban areas of the Republic of Gabon. The project exact activities location is not known yet. 2. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM FNU Owono Owono, Social Specialist Cyrille Valence Ngouana Kengne, Environmental Specialist SAFEGUARD_TABLE 3. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation The original project was categorized as B and the proposed restructuring will not trigger new safeguards policies, and is therefore categorized as B. Potential environmental and social risks and impacts of the project for the most part are expected to remain minimal, site-specific and manageable to an acceptable level. The Environmental and Social Management Framework (ESMF) has been updated to consider Environmental Assessment (OP) (BP 4.01) Yes additional activities and new locations and related environmental and social issues. The ESMF includes standard methods and procedures, and along with appropriate institutional arrangements for screening projects activities, reviewing, implementing, and monitoring specific ESIAs to prevent adverse risks and impacts, as well as cumulative impacts. The updated report was disclosed in country and at the Bank’s Imagebank on May 16, 2019. The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) This project will develop a master plan for access to basic services in the Borrower’s rural areas covering, inter alia, rural electrification and water supply. The envisioned Master plan is likely to have environmental and social impacts when implemented through future programs or projects. Terms of References for the master plan for access to basic services will then incorporate environmental and social considerations. There will be an agreement/agreed ToRs with the client on the need and process to incorporate environmental and social considerations into the master plan development process. Once the location and scope of the investments to be financed under component 1 will be decided by the Government of Gabon, as needed, RAPs will be prepared and disclosed to the Bank's satisfaction, and payment of eventual compensation (to be financed by the Government) completed prior to commencement of any works. Performance Standards for Private Sector No Activities OP/BP 4.03 No risks and impacts on natural habitats are not anticipated. There will be no (in) direct degradation or loss of natural habitats (whether in a park or not), because targeted areas under the Natural Habitats (OP) (BP 4.04) No restructured Project are not located in national parks. They are not anticipated risks and impacts on forests because this project does not entail the construction of High voltage transmission lines , Forests (OP) (BP 4.36) No which require largest Right of Way width .The restructured Project will not finance activities in areas designated as Forests. Pest Management (OP 4.09) No This project will not involve pest management. This policy is triggered as the Component 1 of the project will support the construction of wells and Physical Cultural Resources (OP) (BP 4.11) Yes water pipes to scale up access to drinkable water. Holy/secret sites such as sacred groves, sacred The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) forests, etc. may be affected. Activities will involve excavations and earth movement. The ESMF has included clear procedures that will be required for identification, protection of cultural property from theft, and treatment of discovered artifacts, and that will be included included in standard bidding documents. It also provides procedures for handling with “chance finds� during implementation project activities This policy was triggered as it is known that Baka are settled in Gabon in general and some may be in the project area. Since the exact location of the activities is not yet defined, the borrower has prepared an Indigenous People Planning Framework (IPPF) for the original project that has been updated and will guide the project Indigenous Peoples (OP) (BP 4.10) Yes implementation in the areas that the screening process will reveal Indigenous People Presence. The updated IPPF was disclosed in country and at Imagebank on May16, 2019. The Involuntary Resettlement policy is triggered as some households may be in the vicinity of lines to be constructed and land may need to be acquired that results in involuntary resettlement and/or restrictions of access to livelihoods and resources. A Resettlement Policy Framework (RPF) was prepared and disclosed in-country on October 9, 2014 and at the Bank’s InfoShop on October 10, 2014. An updated report was disclosed in country Involuntary Resettlement (OP) (BP 4.12) Yes on May16,2019 and at the Bank’s Imagebank on May 16, 2019. Once the location and scope of the investments to be financed under component 1 will be decided by the Government of Gabon, as needed, RAPs will be prepared and disclosed to the Bank's satisfaction, and payment of eventual compensation (to be financed by the Government) completed prior to commencement of any works. This project does not involve the construction of Safety of Dams (OP) (BP 4.37) No new or rehabilitation or use of existing dams. The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) Projects on International Waterways (OP) No Activities do not affect international waterways (BP 7.50) Projects in Disputed Areas (OP) (BP 7.60) No Activities will not be implemented in disputed areas KEY_POLICY_TABLE I. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. SUMMARY OF KEY SAFEGUARD ISSUES 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. The potential environmental and social impacts of the infrastructure investments under the proposed Project are expected to be generally minimal. Localized impacts may occur, thus requiring appropriate mitigation. In light of envisioned Project activities, there are two Environmental World Bank Safeguard policies applicable to this operation: Environmental Assessment (OP 4.01) and Physical Cultural Heritage (OP. 4.11). Two social safeguards policies are triggered for the project and will guide the implementation of the project: Indigenous Peoples (OP/BP 4.10) and Involuntary Resettlement (OP 4.12) The ESMF prepared by the client identifies social and environmental impacts that are likely expected during the works and exploitation phases. The most likely are the following: Social impacts : • social conflicts related to inadequate sites choice; • disruption of the free movement of people; • Disruption of socio-economic activities; • Risk of social conflicts due to non-local access to jobs; • Risk of loss of private land; • Spread of the SIT/HIV/AIDS; • Risk of involuntary resettlements and loss of socio-economic assets; • Risk of accidents in work; • risk of injury (electrocution); • risk of labor influx • risk of Gender Based Violence ( GVB Environmental impacts : • disturbance and degradation of natural habitats (forests) • Trees cutting along the transmission lines; • risk of local soil erosion. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. The project activities are not anticipating long term and large scale indirect impacts. The most likely indirect impact that can be anticipated is the SIT/HIV/AIDS spreading. The people that are contaminated could spread the disease. 3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) The access to rural electrification and rural water infrastructures remain very weak (15% and 39% respectively) with regard of the Government set specific quantitative targets to be reached by 2025 (80% access for both rural electrification and rural water infrastructure). As the project intends to contribute to reach the government target, no project alternatives exist. 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. To address safeguards issues the borrower has prepared three safeguards key instruments that will guide the project implementation: 1- the Environmental and Social Management Framework (ESMF) was updated and disclosed on May 16, 2019. The ESMF prescribes project arrangements for the preparation, review, approval and implementation of the activities that will be financed under the project. 2- an Indigenous People Planning Framework (IPPF) which was approved and disclosed on October 9, 2014. The IPPF was updated and disclosed on May 16, 2019. The IPPF provides information on the location of Indigenous people in areas likely to be affected by the project. The IPPF provides information to "judge the positive and negative impacts of the project on Indigenous Populations� 3- A Resettlement Policy Framework (RPF) which was approved and disclosed both in Country and the Bank’s Infoshop was updated and disclosed on May 16, 2019 . The RPF identifies principles to be followed in the event of temporary land acquisition, the damage or removal of assets such as crops and trees, and the acquisition of land. 4-A Grievance Redress Mechanism was elaborated by the PIU and will integrate a communication plan and specific gender and GBV’s arrangements to ensure that all stakeholders are actively involved in project’s activities and are fully aware of all grievance’s uptake channels and management mechanisms. The Borrower has also organized an extensive public consultation during the whole safeguards instruments preparation process and the consultation will continue throughout project implementation. The Implementing Agency of the project has already implemented World Bank projects. The structure has an acceptable capacity to implement world bank safeguards policies. In addition, it was agreed that for this project, environmental and social daily implementation of the project will be carried out by one (01) an Environmental Specialist recruited and One (01) Social Development Specialist who will be recruited by the Project Coordination Unit of the project, while the whole environmental and social issues will be supervised by the General Directorate of Environment and Protection of Nature none as «Direction Générale de l’Environnement et de la Protection de la Nature (DGEPN)». (DGEPN) will receive all relevant support from CNTIPPEE(PIU) to ensure satisfactory supervision of social and environmental issues of the project. 5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders that will be part of the project are those who will be located in the five provinces that expect to host the project activities (Estuaire, Moyen-Ogoué, Ngounié, Nyanga, Ogoué Ivindo). This includes : • Persons affected by loss of assets ; • Local collectivities ; • Local and traditional authorities ; • Local Organizations ; • Local Associations ; • Local public administrations ; • National and international organizations ; The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) • National and International NGOs. The Borrower has already organized an extensive public consultation during the whole safeguards instruments preparation process and the consultation will continue throughout project implementation. DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS ENV_TABLE Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission for disclosure 16-May-2019 16-May-2019 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors “In country� Disclosure Country Date of Disclosure Gabon 16-May-2019 Comments RESETTLE_TA BLE Resettlement Action Plan/Framework Policy Process Date of receipt by the Bank Date of submission for disclosure 16-May-2019 16-May-2019 “In country� Disclosure Country Date of Disclosure Gabon 16-May-2019 Comments INDIG ENOUS_TA BLE Indigenous Peoples Development Plan/Framework The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) Date of receipt by the Bank Date of submission for disclosure 16-May-2019 16-May-2019 “In country� Disclosure Country Date of Disclosure Gabon 16-May-2019 Comments COMPLIANCE_TABLE C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL EA_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review Yes and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes PCR_TABLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse Yes impacts on cultural property? IP_TABLE OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate) Yes been prepared in consultation with affected Indigenous Peoples? If yes, then did the Regional unit responsible for safeguards or Practice Manager Yes review the plan? If the whole project is designed to benefit IP, has the design been reviewed and Yes approved by the Regional Social Development Unit or Practice Manager? IR_TABLE The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135) OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework Yes (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Practice Manager Yes review the plan? PDI_TABLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for Yes disclosure? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups Yes and local NGOs? ALL_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the monitoring Yes of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower Yes and the same been adequately reflected in the project legal documents? II. APPROVALS Task Team Leader(s) Alassane Agalassou Approved By Safeguards Advisor Hanneke Van Tilburg 20-May-2019 Practice Manager/Manager Charles Joseph Cormier 20-May-2019 . The World Bank RESTRUCTURING ISDS Access to Basic Services in Rural Areas and Capacity Building Project (P144135)