The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 08-Nov-2019 | Report No: PIDISDSA26352 Sep 23, 2019 Page 1 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Myanmar P168107 Myanmar Peaceful and Prosperous Communities Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) EAST ASIA AND PACIFIC 25-Nov-2019 10-Mar-2020 Social Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Republic of the Union of Ministry of Agriculture, Myanmar Livestock and Irrigation Proposed Development Objective(s) To increase access to improved basic infrastructure and economic opportunities for rural communities in selected conflict-affected townships of Myanmar in a conflict-sensitive manner. Components Mechanisms to strengthen collaboration Improving basic infrastructure and services Improving rural livelihoods Implementation support PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 250.00 Total Financing 225.00 of which IBRD/IDA 200.00 Financing Gap 25.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 200.00 Sep 23, 2019 Page 2 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) IDA Credit 200.00 Non-World Bank Group Financing Counterpart Funding 25.00 Borrower/Recipient 25.00 Environmental Assessment Category B-Partial Assessment Decision The review did authorize the team to appraise and negotiate Other Decision (as needed) B. Introduction and Context Country Context 1. Myanmar has some of the world’s longest-running civil conflicts, with upwards of one third of the country’s 330 townships (and almost one quarter of the country’s population) affected. These conflicts are predominantly concentrated in the country’s periphery, which is home to most of its many ethnic minority groups (known as “ethnic nationalities� in Myanmar). At the heart of these conflicts are issues of ethnic rights and local control of decisions and resources for local development. 2. At present, Myanmar is in the midst of a triple transition: from military rule to democratic governance, from a state-controlled to a market-oriented economy, and from decades of conflict with ethnic minorities to an effort at finding peace. These transitions remain incomplete and continue to face setbacks and challenges. Nonetheless, the on-going efforts across these three dimensions offer the best hope in a generation for a peaceful and prosperous country with opportunities for all its people. 3. A cornerstone of Myanmar’s transitions has been a historic peace initiative aimed at ending the myriad ethnic conflicts that have beset Myanmar’s border areas since independence. This has included a series of bilateral ceasefires starting in 2012, including in January 2012 with the Karen National Union (KNU). In October 2015, the government and eight ethnic armed organizations (EAOs) signed the Nationwide Ceasefire Agreement (NCA), which set out to mark a change from decades of armed conflict to efforts at a political solution to address the historic grievances of Myanmar’s ethnic minorities, including for increased autonomy, recognition and control over their affairs. Two more EAOs signed the NCA in subsequent years. Sep 23, 2019 Page 3 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) 4. The civilian government that came to power following historic elections in November 2015 has confirmed the priority it attaches to the peace process, and has sought to move from the current ceasefire arrangements towards lasting peace. This has included a series of national conferences that brought together leaders of ethnic armed organizations (EAOs), the Myanmar military (Tatmadaw) and the civilian government to identify areas of shared concern and opportunities for political progress. It has also included dialogue with EAOs that have not yet signed the NCA to join the political process. 5. Despite these efforts, the peace process remains fragile and uneven, with conflict increasing in some areas. A 17-year ceasefire with the Kachin Independence Organization (KIO) broke down in 2011 and led to renewed fighting in the country’s northeast. An estimated 100,000 people in Kachin and Shan States have been living in displacement camps or camp-like situations since 2011. 6. Rakhine State has seen particularly high levels of violence. Over the past decades, Rakhine State has seen multiple rounds of conflict, most recently in August 2017 when deadly violence led to the forced displacement of more than 730,000 Muslims who self-identify as Rohingya1 into Bangladesh. This violence has exacerbated communal tensions and deepened social fractures. Rakhine State suffers from underdevelopment, intercommunal conflict and lingering grievances toward the central government. The Muslim community in Rakhine disproportionately suffers from all dimensions of exclusion, including landlessness and monetary poverty. Muslims and other minorities also live under stringent mobility restrictions that have a profound impact on the livelihoods of affected communities and the economic and social development of the state. It is estimated that about 600,000 Muslims remain in Rakhine State, a number that includes the vast majority of the close to 130,000 people in internally displaced persons camps in Central Rakhine. In recent months, new violence resulting from clashes between the military and the Arakan Army, a Buddhist ethnic Rakhine insurgent group, has led to more deaths and displacement. 7. As part of an effort to build trust and create opportunities for communities that were affected by conflict, the government has sought the World Bank’s support in the design and financing of a “Peaceful and Prosperous Communities� project. The proposed project would seek to increase access to improved basic infrastructure and economic opportunities for rural communities in conflict-affected areas of Myanmar, including by building mechanisms to foster engagement and trust between communities, EAOs and governments at the township, state and union levels. As the PPCP is focused on conflicts that are being addressed through the national peace process, no activities under this project are envisaged for Rakhine. 1In line with the Report of the Advisory Commission on Rakhine State (2017), the remainder of the document will refer to those who self-identify as Rohingya as “Muslims� or “the Muslim community in Rakhine�. This does not include the Kaman Muslims in Rakhine or other Muslims in the country. Sep 23, 2019 Page 4 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) Sectoral and Institutional Context 8. The combination of high levels of insecurity and decades of underinvestment in rural areas has left communities in conflict-affected areas – many of which are among the poorest in Myanmar – facing significant gaps in access to essential infrastructure, limited service provision and low human development indicators. The 2017 Myanmar Living Conditions Survey found that the border areas of Kachin, Kayin, Mon and Shan states, and Tanintharyi region, each of which have been affected by conflict, have some of the worst measures of access to basic social services and participation in economic activities. For example, Kayin and Tanintharyi have the highest percentage of households using unimproved water sources, and, along with Rakhine, the lowest percentage of households with access to basic sanitation. Kayin, Mon, and Shan states have the highest percentage of people 15 years and older who report being illiterate, and similarly report among the highest levels of innumeracy for the same age group. Gross enrollment rates for both middle and high school are also among the worst in the country in Kayin, Tanintharyi, Mon and Shan, as are labor force participation rates (for those 15 years old and above) in Kachin, Kayin and Mon states. Of those townships considered to be conflict-affected (based on a recent study by The Asia Foundation), 77 percent fall in the bottom half of the multi-dimensional disadvantage index (MDI-2) recently developed by the World Bank and the Myanmar Department of Population (see Figure 1).2 3 9. Both the majority ethnic Bamar and minority ethnic nationalities communities have been affected by the conflicts, which over the decades have included violence associated with armed conflicts, large scale displacement and allegations of a range of human rights violations committed by many parties to the conflicts, including the military and EAOs. Although the recent ceasefires have not addressed the fundamental grievances underlying the conflict, they have greatly reduced the number of armed clashes and improved security, increasing the ability of communities to travel safely to access markets and services. 10. While reduced levels of conflict have led to tangible improvements for communities, socio-economic recovery remains constrained, both by lower levels of financing for development programs in conflict-affected areas and by the absence of mechanisms to deliver such programs at scale and in ways that generate trust. Multiple factors converge in Myanmar’s conflict-affected areas to create a uniquely complex operating environment. First, the long duration of these conflicts has shaped the nature of the state in these areas and the experience of communities interacting with government authorities, including a very limited – and heavily security-focused – presence. Second, perceptions are shaped by a long legacy of development projects being used to further state-building aims, generating significant negative externalities, or being used to “buy the peace� by benefitting primarily local elites and powerholders. Third, the lack of direct oversight of security forces and activities by the civilian government, combined with coordination challenges between the union, state and local levels of government, generate a high potential for misunderstandings. Finally, prior to independence a number of the conflict-affected areas of the country were independent principalities or fell under separate administrative arrangements during colonial rule. In recent decades, many of the EAOs have developed their own service delivery mechanisms in areas such as healthcare and education.4 These parallel systems continue to exist today and 2 Burke, Adam, Nicola Williams, Patrick Barron, Kim Joliffe and Thomas Carr (2017). Contested Areas of Myanmar. Yangon: The Asia Foundation. 3 The multidimensional disadvantage index (MDI) uses data from the 2014 census to compare relative levels of non-monetary poverty across all townships in the country. The index uses indicators relating to household education, health, water and sanitation, housing, employment and assets. MDI-2 places more weight on households with multiple disadvantages, and therefore is considered the more sensitive measure of the depth of poverty. 4 These and other services in conflict-affected areas of the Southeast have traditionally received support from external sources such as NGOs, UN and other development agencies. An assessment done as part of the PPCP preparation (“Donor Landscape of Southeastern Myanmar�) found that financing for health, education and WASH has remained relatively constant over the past Sep 23, 2019 Page 5 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) provide a key source of legitimacy for EAOs in an environment where their security role – as a result of the ceasefire agreements – is less vital. Suspicion by local communities, reluctance by EAOs and limited capacity of government combine to create a highly uncertain operating environment at a time when a final peace agreement, inclusive of a comprehensive political settlement, has not yet been reached. 11. Despite on-going challenges, the current peace process, and the Figure 1: Multi-Dimensional Disadvantage provisions of the Nationwide Ceasefire Agreement (NCA), offer the potential Index by Townships for progress on socio-economic development. At present, the peace process aims to advance progress on political, security and development tracks. On the political side, regular high-level dialogue through a series of national peace conferences aims to address underlying political grievances. On the security side, the NCA established the Joint Ceasefire Monitoring Committee (JMC) mechanism, which consists of tripartite mechanisms at the union and state levels bringing together government, Tatmadaw and EAOs to review and resolve ceasefire violations. On service delivery, chapter six of the NCA makes specific provisions for coordination between government and EAOs to increase socio- economic support and livelihood opportunities for conflict-affected communities through its provisions for “interim arrangements�. These arrangements were conceived to guide service delivery and governance of development support between EAOs and government in the period between initial ceasefires and a comprehensive political settlement, and potentially beyond. However, and despite some encouraging progress in specific sectors, these interim arrangements have not yet been operationalized in a structured manner that allows support to be increased at scale. 12. Extensive consultations by the team have indicated a strong desire on the part of many stakeholders to find a way to increase access to services, essential infrastructure and livelihood opportunities in a way that builds trust among communities, ethnic armed organizations, and government. In particular, a strong desire exists among both government and a range of Source: MOLIP and World Bank (2018) development partners to scale up support to Myanmar’s conflict-affected areas. However, few mechanisms exist to do so at scale in a way that ensures programs would support a positive feedback loop of interactions, especially when operating in a complex and highly diverse environment. Operationalizing, testing and scaling such structures would be an important element of the proposed project. C. Proposed Development Objective(s) Development Objective(s) (From PAD) 13. The Project Development Objective is to increase access to improved basic infrastructure and economic opportunities for rural communities in selected conflict-affected townships of Myanmar in a conflict-sensitive manner. 3-5 years, but that there are some wide variations in focus and emphasis that put in question the long-term sustainability of these funds. Sep 23, 2019 Page 6 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) Key Results 14. The PPCP aims to increase access to basic infrastructure and improve the quality of existing infrastructure facilities depending upon the priorities of project communities. The Project will also improve economic opportunities for rural households by supporting a variety of on and off-farm activities. All these activities will be carried out in an inclusive, participatory manner, with joint decision-making by Government, EAOs and communities. 15. The PDO level indicators are: a) Households with increased access to improved infrastructure due to the project (%) b) Increase in agricultural production (%) c) Satisfaction of communities, EAOs and government stakeholders with project-supported activities (%) d) Increased involvement by communities and ethnic organizations in local development planning (number) D. Project Description 16. The project will consist of four components as follows. a. Component 1: Mechanisms to strengthen collaboration (US$8 million, of which US$7 million IDA). This component would seek to establish mechanisms for building trust and collaboration between government, EAOs and communities to facilitate collaboration on components 2 and 3, and to allow the PPCP to achieve scale and sustainability. Activities under this component are grouped under three sub-components. The first would support the establishment of joint planning and decision- making mechanisms at union, state and township levels, including a union-level multi-stakeholder forum to include representatives of the union government, Chief Ministers of participating states, and EAO leadership to review results under the PPCP, identify lessons learned and provide policy directions. Mechanisms for joint EAO-Government engagement and planning under the project will also be strengthened at the state/region and township levels, building on existing models. The second sub-component would support on-going and enhanced stakeholder engagement with a particular focus on local civil society groups, including youth and faith groups, communications and outreach activities, and the establishment of effective feedback loops and joint accountability mechanisms, including through a grievance handling mechanism. The third subcomponent would establish mechanisms for regular monitoring, reflection and adaptive learning, including a project management information system that allows for public access to project data, social audits and other feedback mechanisms. The component would finance training, consultant services, equipment, communications materials and incidental operating costs associated with meetings, materials, learning events, and information systems, etc. b. Component 2: Improving basic infrastructure and services (US$143 million, of which US$115 million IDA). This component would support community-centered, demand-driven processes of identifying and implementing basic infrastructure investments at village and village tract levels, and activities that would indirectly support joint government-EAO service delivery particularly in the areas of health and education. The component will have three distinct parts: sub-component 2.1 will finance four rounds of block grants for village-level infrastructure (including small roads, bridges, Sep 23, 2019 Page 7 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) water systems, off-grid electrification or grid extension support, rehabilitation and expansion of schools, health clinics or other community buildings, etc.); sub-component 2.2 will finance medium- size inter-village or village tract infrastructure (similarly for roads, bridges, water systems, etc., but of larger scale than under sub-component 2.1); and sub-component 2.3 will finance grants for activities that would help to improve joint service provision between Government and ethnic service providers particularly in the areas of health and education . This component would finance block grants for sub-projects executed by villages, civil works (for sub-component 2.2), goods, consultant services and incidental operating costs. The joint decision-making mechanisms to be established under component 1 would support the approval and oversight of these sub-components, and would seek to foster linkages with other Union and state/region government programs to ensure sustainability in basic service delivery as well as in delivering high quality complex infrastructure such as electrification (see below, “lessons learned�). c. Component 3: Improving rural livelihoods (US$79 million, of which US$60 million IDA) . This component would support rural productive activities that increase economic opportunities for conflict-affected communities, with activities grouped into two sub-components. The first would support activities that focus on on-farm and off-farm technical training, provision of extension services, entrepreneurial support, inputs and information. The second sub-component would aim to increase access to finance through grants and training to establish village development funds (VDFs) that would be managed by village committees in accordance with procedures agreed upon with the World Bank. The VDFs would operate as community level revolving funds that provide micro-credit to village-based businesses. While allowing for flexibility in defining the final guidelines, the VDFs will follow some core principles including: approval of loan by the village VDF committee, use of funds for rural business purposes (i.e., not for consumption), priority involvement of female-headed households, minimum and maximum number of members (with an estimated average of 10), use of prevailing revolving credit rates of interest to ensure sustainability of the fund, etc. Based on preliminary assessments of the potential project areas, the types of local micro-enterprises that may be supported include tractor services for land preparation and harvesting, seed nursery and seed propagation services, and livestock banks, etc. The component would finance block grants for component 3.1 beneficiaries (based on approved livelihood group proposals) and for the VDFs, consultant services (for training and extension support), other training costs, and incidental operating costs. d. Component 4: Implementation Support (US$20 million of which US$18 million IDA). Activities under this component will support effective project management systems for financial management, procurement, social and environmental safeguards management at the union, state and township levels, as well as supervision and coordination between implementing agencies, regular reporting on project implementation, annual audits, etc. This component would also include a robust project evaluation system to measure overall project impact, and to support specialized studies to inform Government and the World Bank on specific issues that are fundamental to the project’s performance. The component would finance small civil works (for minor repairs of Government offices), goods (office equipment, furniture and vehicles), consultant services, training costs, and incidental operating costs. 17. The project would initially focus on the Southeast region of the country where political dialogue between government and EAOs is well-established, ceasefire agreements have generally held and recovery and development activities have been expanding and delivering results. This progress is reflected in the shift from Sep 23, 2019 Page 8 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) emergency and humanitarian support to more developmental programming among development actors and the recent return of refugees from Thailand. While incidents of violence have reduced over time in these states, large segments of the population, and the economic and social dynamics in this area of the country, remain conflict- affected and vulnerable to relapsing back into violent conflict. Overall, it is estimated that the PPCP would ultimately cover 20 conflict-affected townships. The project proposes to start in two townships in each of three conflict-affected states in the Southeast – Kayin, Kayah and Mon. After two years of project implementation, it is proposed that the project take stock of progress and experiences, as well as review the state of the national peace process, to determine the next phase of project expansion, including potentially to other states/regions. It is expected that an additional six townships would be added by the third year, and the remaining eight townships covered under the project by no later than the fourth year of implementation. This approach implies that the project would have a duration of seven years. 18. The project would seek to foster coordination between Government and EAOs in supporting the socio- economic recovery of conflict-affected communities. Such collaboration is provided for in Chapter 6, Article 25 of the National Ceasefire Agreement (NCA) signed between the Government and two of the three main EAOs in the project area (the KNU and the NMSP), and subsequently ratified by Myanmar’s parliament. Similar commitments to coordination on socio-economic development issues are included in the bilateral ceasefire agreement signed with the third principal EAO (the KNPP). Through the mechanisms supported under and described in component 1, EAOs at the state level would be involved in the identification of project townships and the prioritization of sub-projects to be financed under component 2.2 and of service delivery support initiatives to be financed under component 2.3. The proposed activities build on areas where there is a track record of successful government-EAO collaboration. For example, in education, the National Education Strategic Plan provides a policy framework for developing a partnership mechanism to support the participation of different education service providers in basic education reforms. Similarly, the National Health Plan (2017-21) explicitly recognizes the contribution of ethnic health providers (an umbrella term referring to a range of organizations such as health departments of EAOs as well as ethnic or community-based organizations with varying degrees of connection to EAOs) in service provision for a considerable segment of the population, and expresses its intent to promote further alignment among the different service providers, through more engagement with ethnic health providers, NGOs and private-for-profit providers. However, EAOs would not play a direct implementation role in the PPCP and would not be recipients of project funds. 19. While Myanmar's EAO landscape is fractured following decades of conflict, there is one principal EAO in each of the three states to be initially covered under the PPCP, which on account of its size, territorial control, and service provision is recognized as a lead EAO interlocutor by government and development partners.5 The team closely reviewed the track record of these EAOs, including their commitment to service provision, their track record collaborating with government and development partners, and their overall organizational profile. Drawing on township conflict assessments to be carried out by the Bank, the project anticipates using a similar approach for inclusion of additional EAOs as the project expands, including criteria such as (i) being signatory to the National Ceasefire Agreement (NCA) or a bilateral ceasefire agreement with government that commits actors to non-violence; (ii) generally recognized control or influence in any part of one of the project townships; and (iii) a willingness to engage with the project. 5These are the Karen National Union (KNU) in Kayin State, the Karenni National Progressive Party (KNPP) in Kayah State and the New Mon State Party (NMSP) in Mon State. Sep 23, 2019 Page 9 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) E. Implementation 20. As a multi-sectoral and multi-leveled project, the institutional and implementation arrangements of the PPCP are inherently complex. The complexity of the project reflects the wide range of development needs that face communities affected by conflict in Myanmar, and the need to engage at all levels of government and EAO authority to ensure effective implementation. Nonetheless, the project design has sought to concentrate responsibilities for key project functions in a lead ministry department and areas of investment at the level of township and below. This concentration of implementation responsibility and project investments reflects the predominantly rural nature of the challenges facing conflict-affected communities and will improve the likelihood of successful implementation. 21. The project will support conflict-affected communities in Myanmar, focusing on those communities where ceasefires have brought a sufficient level of security to allow communities to move from a focus on survival to accessing services and rebuilding livelihoods, with activities taking place at the state/region, township and community levels. An estimated two million people in approximately 20 townships are ultimately expected to directly benefit from project investments and support. Within a township, the project will cover all villages (both registered and unregistered) for equity purposes and operational efficiency. Returnees would also be eligible for support under the project per normal operational procedures. It is projected that the activities supported under component 2 will benefit all residents of the estimated 20 townships, while the livelihoods support under component 3 will directly benefit about 60 percent of households in the target townships, with an additional 25 percent of households benefitting indirectly (through training and secondary employment generation). 22. Within conflict-affected areas, townships will be selected based on poverty, impact of conflict and operational accessibility. The selection criteria would also include state/region government commitment as reflected in willingness to co-manage and cost-share activities, openness of EAOs to facilitate implementation and clustering of townships to improve efficiencies. The targeting process will draw on data from the multi- dimensional disadvantage index, developed jointly by the Department of Labor, Immigration and Population and the World Bank as an indicator of need, and a discussion at the state level between local government and relevant ethnic armed organizations to identify degree of conflict-affectedness. A shortlist of qualified townships would be reviewed and final selection confirmed by government and local stakeholders. Institutional and Implementation Arrangements 23. At Union level the Department of Rural Development of the Ministry of Agriculture, Livestock and Irrigation (MoALI) will lead project implementation. MoALI is currently successfully implementing a number of World Bank-financed projects, and both the rural development and agricultural services departments have a staffing presence in all of Myanmar’s townships. Moreover, the Department of Rural Development has established a unique track record in leading government engagement with EAOs during its implementation of the national community-driven development project. Building on this implementation capacity and existing relationships with EAOs will allow the project to begin implementation quickly, and provide a useful point of reference for other involved government ministries, including the Ministry of Health and Sports, the Ministry of Education, the Ministry of Construction, the Ministry of Electricity and Energy, etc. 24. The office of the Chief Minister of each participating state or region would be responsible for managing component 2.2 (intermediate level infrastructure) and component 2.3 (service support grants). This office, which is supported by the General Administration Department at state/region level, would establish a Sep 23, 2019 Page 10 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) State/Region Implementation Unit that would be staffed with state/region level personnel with relevant project management skills. As the states and regions of Myanmar have almost no experience with directly implementing World Bank financed activities, these implementation units would be supported by a state/region technical support teams contracted under the project to ensure application of relevant fiduciary and safeguard requirements. State/region governments also would be responsible for activities under component 1 of the project. This would include facilitating the regular joint Government-EAO mechanisms for consultation, discussion and decision making at township and state/region levels, and working closely with DRD on key component 1 activities such as the grievance system and MIS in order to extend these systems to cover components 2.2 and 2.3. The state/region government would also be responsible for ensuring engagement with line departments for other services to be supported under the project—including health, education (social affairs), energy, forestry, etc. 25. The Chief Ministers will play a leading role, together with relevant EAO representatives, in ensuring that overall project implementation is feasible and effective at sub-national level. Three types of structures are envisioned at this level to support implementation: a state/region policy and coordination mechanism (the State Coordination Committee), a state/region implementation meeting that would directly involve EAOs, and specific sectoral working groups. All three structures and mechanisms would be supported under component 1 of the project. These structures build on the experiences of Chief Ministers in facilitating such dialogues on development matters with EAOs, for example by the Chief Minister in Kayin State with the KNU, or the “3+3� arrangement established in Mon State with the NMSP in support of the Nippon Foundation financing, and similar experiences in the health sector or on community forestry. Service support grants (component 2.3) would be utilized to facilitate these joint sectoral activities through capacity building and training. 26. At township level, project implementation will be led by DRD for component 2.1 and all of component 3, and by state/region governments, acting through the township administration, for components 2.2 and 2.3. DRD will contract with Facilitating Partners (FPs)—generally international or large national NGOs-- to provide assistance to help initiate project implementation and build capacity of government counterparts during the initial project period at township levels. This will help to accelerate start up, augment technical capacities of implementing departments and would also help mitigate potential concerns on the part of EAOs regarding Government extension into areas under mixed or EAO control. In certain instances, FPs might work with and through local CBOs with local knowledge, networks, and trust to facilitate access and operations in communities in such areas. 27. Given the close link between the project and the ongoing peace process, strategic leadership and guidance for the project will be provided at the Union level by a steering body consisting of key policy and technical ministries. The Union Steering Committee (USC) would include representatives of the National Reconciliation and Peace Center (NRPC), State Counselor’s Office, the Ministry of Investment and Foreign Economic Relations, Ministry of Union Government, Ministry of Agriculture, Livestock and Irrigation, Ministry of Education, of Health and Sports, other line ministries involved in project implementation and representatives of state/region governments participating in the project. This steering committee would help ensure continued consistency between the peace process and the project’s efforts, approve the PPCP’s overall operational procedures, ensure appropriate coordination across sectors and between levels of government, review annual project progress and advise on opportunities for enhanced support of the peace process and for possible project expansion. Two broad stakeholder platforms would be supported under the project to facilitate feedback. These are: (i) an annual EAO Forum to facilitate discussion of experiences and lessons learned both within and outside of the project; and (ii) an annual multi-stakeholder review that would specifically review project implementation Sep 23, 2019 Page 11 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) processes and results to inform any changes or adaptations for future implementation. 28. Multiple mechanisms would be created or enhanced at state/region and township levels to support coordination, governance and feedback. As noted above, a state/region implementation meeting would be established at state/region level to support continuous dialogue with EAO representatives and facilitate project implementation. At township level, the project would seek to enhance the existing Township Planning and Implementation Committee structure to formally involve EAOs in local level planning discussions. Consultation and stakeholder review mechanisms would also be put in place to support feedback and transparency under the project. These mechanisms include township stakeholder consultation meetings and annual multi-stakeholder reviews, and state/region sectoral working groups. . F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) The project will support activities in conflict-affected areas of the country, with an initial focus on the Southeast. Overall, the project will cover 20 conflict-affected townships, but plans to start in two townships in each of three conflict affected states of Kayin, Kayah, and Mon. After two years of project implementation, the project will take stock of progress, experiences, and the state of the peace process, to determine the next round of project expansion, including potentially to other States/Regions. It is expected that an additional eight townships would be added by the third year, and the remaining six townships by no later than the fourth year of implementation. The project will not expand into Rakhine. The three states are geographically diverse. Much of their terrain consists of highlands and mountainous areas including large areas of flat and arable land, notably in Mon and Kayin States. The River Thanlwin, which originates from the Tibetan Plateau, and runs for about 2,400 km to its mouth on the Gulf of Martaban, runs through all three states. The states are still forested although coverage continues to decline at a rapid rate. The forests contain impressive biodiversity including wildlife sanctuaries, geographical significant reserve and with natural reserve areas in Mon and Kayin states. The natural disaster risks present in the areas include flooding, earthquake, landslide, fire, etc. Southeastern Myanmar also contains the majority of the country’s landmine affected townships. Within conflict affected States/Regions, townships will be selected based on poverty, conflict, and operational accessibility. Within a township, the project will cover all villages (both registered and unregistered) for equity purposes and operational efficiency. Returnees would also be eligible for support under the project. Specific demographic, social, cultural and political characteristics of communities in each of the three states are discussed in more detail in the social assessment. G. Environmental and Social Safeguards Specialists on the Team Martin Fodor, Environmental Specialist Wasittee Udchachone, Environmental Specialist Alkadevi Morarji Patel, Social Specialist Sep 23, 2019 Page 12 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) The project is rated as Category B as it will finance small-scale demand-driven infrastructure and livelihood interventions in rural communities, with limited and manageable footprint and impacts. The infrastructure to be financed will typically include small roads, village water supply systems, rehabilitation of classrooms and health centers etc. Temporary negative impacts will be related to typical small-scale construction activities. Specific investments that pose social or environmental risks that cannot be mitigated (degradation of natural habitats, protected forests, or cultural resources) would be included in the project's negative list of ineligible investments. Potential adverse impacts from project activities are expected to be site-specific with limited and manageable footprint. Any activities requiring land acquisition or restrictions on land use will not be eligible under the project. Environmental Assessment OP/BP 4.01 Yes The project is considered high risk based on operating in conflict settings and potential exclusion of minorities and other vulnerable or disadvantaged groups or women, to decision-making processes and access to project benefits. A social assessment has been undertaken to understand the potential for risk and impacts as a result of project. The assessment also addresses the need to ensure benefits reach all groups including ethnic groups when they are present in the project area. The project will manage these risks by incorporating participatory and inclusive processes into the design of the project across all components. The subprojects under component 2.1 and 2.2 will be identified by communities and by village-tract representatives, with Civil Society Organisations (CSOs) and Ethnic Armed Organisations (EAOs) inputs. Livelihood groups at village level would identify livelihood subprojects under component 3. Sep 23, 2019 Page 13 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) The specific project locations and activities in those locations are not known at this time. Therefore, an Environmental and Social Framework (ESMF) has been prepared, which details how risks will be identified and managed during project implementation. The ESMF will apply to all subprojects at each stage of project implementation. The draft ESMF was formally disclosed in country on 9 September 2019 and the Social Assessment on 10 September 2019. Consultations on the instruments have taken place in Kayin, Mon, and Kayah States (October 2-22, 2019). Results of the consultations, to date, have been incorporated in the final draft of the ESMF. This policy is not triggered as the project does not Performance Standards for Private Sector support any private sector led economic No Activities OP/BP 4.03 development that will be designed, owned, constructed and/or operated by a Private Entity. This policy is triggered because of the potential negative impacts that subproject activities might have on natural habitats. While these activities are expected to be small scale and with overall limited impacts that can be adequately mitigated, the policy is triggered for precautionary reasons to ensure that Natural Habitats OP/BP 4.04 Yes any physical interventions (including those proposed in known reserved or declared national forests zones) will not adversely impact or lead to the degradation of critical or other natural habitats. The ESMF provides for the screening of potential project impacts and how safeguard issues under this policy should be addressed during project implementation. This policy is triggered because of the possibility that some villages to be supported under the project are within classified forests and that implementation of project livelihood activities in such villages may involve utilization of natural forests or plantations. Environmental impacts of such subprojects are Forests OP/BP 4.36 Yes expected to be minimal, site-specific and manageable. Since the project is designed to be community demand-driven, there is a possibility that the project may support community forest activities. Support would be limited to small-scale community forestry activities. Sep 23, 2019 Page 14 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) Procedures for screening and managing potential impacts on forest and for promoting sustainable use of forests, which could include community forest activities, is included in the ESMF. An EMP would likely be required in case of sub-projects that involve community forest activities. In Myanmar, the 2018 Forest Law and the 2019 Community Forestry Instructions are the key regulations that provide a framework of support for community forestry, including requirements on areas where community forests can be established, preparation of management plans of community forests, permission and prohibitions from the Forest Department, as well as reporting requirements. The management plan would cover, among others, establishment of forest plantation, conservation of existing forest, rules and regulation of user groups, and fund management. These requirements would be included in sub-project EMPs, as well as in the project operation manual. Activities that would cause significant conversion or degradation of critical natural forest areas will not be eligible for project support. The project will not promote the use of pesticides, insecticides and herbicides and other dangerous chemicals. However, the project's possible support of irrigation infrastructure and for rural livelihoods support might lead to an increased use of pesticides. The ESMF includes a procedure for Pest Management OP 4.09 Yes screening/assessing potential use of pesticide and a simple pest management plan, as well as mandating training in integrated pest management, to ensure that the pesticides used have negligible or minimal impact on environment and people. This policy is triggered due to the possibility of subproject implementation in, or in the vicinity of, a physical cultural heritage site. It is anticipated that impacts on PCR from subprojects activities are likely Physical Cultural Resources OP/BP 4.11 Yes to be minimal/limited, site specific and manageable because: (i) infrastructure works that the project will support are small-scale; and (ii) investments detrimental to cultural resources will not be eligible Sep 23, 2019 Page 15 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) under the PPCP project. The ESMF includes guidance on screening, assessing and identifying measures to avoid or mitigate and monitor impacts on physical cultural resources, and on chance-find procedures. The policy is triggered since ethnic group communities are present in the project areas. A project level social assessment has been undertaken. The project will carry out free, prior, informed consultations with all villagers, including ethnic minority groups in the project areas, as part of project implementation to ensure broad community support for project activities. This process will be led by Community Facilitators employed and trained under the project, and guided by the Indigenous Indigenous Peoples OP/BP 4.10 Yes Peoples Planning Framework (IPPF), prepared as part of and included in the ESMF. This process will be embedded in the participatory social assessments and the village development planning process that underpins project support in all communities. As such, for those communities with ethnic minority groups that require an Indigenous Peoples Plan (IPP), the Village Tract Development Plan (VTDP) will meet the requirements and reflect a process of free, prior, and informed consultation of any ethnic groups at village level. OP 4.12 has not been triggered as (i) the majority of the infrastructure that will be constructed/upgraded will be on existing footprints and therefore none or very little land would be required, (ii) if land is required this will be done through voluntary land donation (VLD) processes, and (iii) where assets may be present, those that can be moved or harvested will be, and those that can’t be would also be treated as per the voluntary donation procedures. Involuntary Resettlement OP/BP 4.12 No As part of the consultations undertaken during preparation, strong concerns were raised relating to adverse impacts from development, specifically in relation to land loss and displacement. Development in Myanmar’s southeast has long been associated with extractive or large-scale infrastructure projects which have adversely impacted local populations. As such, a recurring message throughout consultations was to ensure that infrastructure development would be of a scale Sep 23, 2019 Page 16 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) and nature that it would not cause land loss or displacement. To address these concerns the project would be designed so as avoid to involuntary resettlement. Under the project, any activities requiring land acquisition or restrictions on land use, which would trigger OP 4.12, will not be eligible for financing. The negative list excludes all activities requiring relocation and involuntary land acquisition. Voluntary donations are eligible only if a subproject can be implemented in another location than where it is planned and only for minor impacts and only for households benefiting from the sub-project. The ESMF includes procedures for screening of all activities for impacts on land, and procedures, including a protocol for VLD. Managing similar small land impacts through VLD or adjusting the site of subproject activities has been successfully applied under another Bank-supported project (NCDDP) by the government's lead implementing agency for the PPCP (the Department of Rural Development-- DRD). NCDDP has implemented more than 20,000 sub-projects with no land acquisition and which thorough monitoring and supervision has documented. DRD has successfully applied VLD procedures, resolved grievances as they arise, managed the re-siting of subproject locations, and has systems in place to document and report on this. In any instances when VLD and procedures are not acceptable to any affected household, the subproject would be re-sited or considered ineligible. This policy is not triggered as the project will not finance the construction of any new dams or the rehabilitation of existing dams including structural and or operational changes. The project will also not finance irrigation or water supply subprojects that will depend on the storage and operation of an Safety of Dams OP/BP 4.37 No existing dam or a dam under construction for the supply of water. The project may, however, finance small-scale water intake/diversion structures such as box or pipe culverts, weirs, water gates, etc. (not more than 1.5 m. in height) which are not classified as dams under OP 4.37. Sep 23, 2019 Page 17 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) This policy is triggered because the current project areas may include townships located along the River Thanlwin/Salween which rises on the Tibetan Plateau, and then flows for about 2,400 km to its mouth on the Gulf of Martaban. Therefore, the project will not finance any new sub-projects that may use water from any international waterway including the River Thanlwin or its tributaries in Kayah State and the northern part of Kayin State up river of where the Thanlwin meets the border of Thailand. However, the project may support: i) minor modifications/rehabilitation or expansion of existing schemes (i.e. small scale water supply or irrigation schemes or pico-hydropower) that might draw on the River Thanlwin or waters from its tributaries; and ii) new construction or the rehabilitation/expansion of existing schemes on Thanlwin tributaries downstream of the confluence of the River Moei with the River Thanlwin, where the Projects on International Waterways Thanlwin changes its course to flow exclusively in Yes OP/BP 7.50 Myanmar territory. Therefore, the project is not expected to adversely affect the quality or quantity of water flows to other riparian countries and will not be adversely affected by other riparian countries’ possible water use. On this basis, the proposed project does not require riparian notification in accordance with paragraph 7(c) of OP 7.50, and the task team has secured an exemption to the riparian notification requirement (approved Sept 30, 2019). Given that the project will be expanded to cover other conflict-affected townships of the country that are not yet identified, a reassessment of the potential impacts on international waterways will be carried out when the areas of project expansion are identified. This will initially happen after approximately 2 years of project implementation. Adjustments to the restrictions or sub-project negative list of the environmental safeguard instrument would be made at that time. Sep 23, 2019 Page 18 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) This policy is not triggered as the project Projects in Disputed Areas OP/BP 7.60 No interventions are not in disputed areas and will be wholly within the borders of Myanmar. 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: The project is rated category “B� in line with the WB OP/BP 4.01 on Environmental Assessment as it will finance small to medium-scale infrastructure and livelihood interventions in rural communities. Typical works considered for financing include rehabilitation or construction of schools, community centers, health posts, small rural roads, rural water supply systems and sanitation facilities, and the rehabilitation of small-scale irrigation scheme. The project may also support minor repairs or rehabilitation of Government buildings required for project management. Livelihood support activities will include on-farm and off-farm technical training, provision of extension services, inputs and information, entrepreneurial support, establishment and/or expansion of village savings and loan associations that could support the financial needs of agricultural production groups, or for off-farm entrepreneurial activities. Small- scale community forestry activities may also be supported. The project will initially begin implementation in 3 states, namely Mon, Kayin and Kayah, and in six townships within these states. Ultimately the project will cover 20 townships, possibly in other states or regions, which would be identified during the course of implementation. In the initial 3 states, participating townships could potentially be located along the River Thanlwin/Salween, an international waterway. Therefore, project activities may include minor modifications/rehabilitation or expansion of existing schemes (water supply, irrigation or pico-hydro) that may draw on the River Thanlwin or its tributaries. New investments that depend on the waters from the main river or tributaries to the Thanlwin/Salween would only be allowed downstream of the confluence of the Moei river where the Thanlwin changes its course to flow exclusively on Myanmar territory. The project will not finance new construction of sub- projects that may use water from River Thanlwin or its tributaries in Kayah State and the northern part of Kayin State. Similarly, some subprojects could be located in known parks and/or reserved forests areas where communities are living for years. The project will not support activities that involve development of new settlements or expansion of existing settlements in critical habitats, PAs or areas proposed for certain levels of national protection (e.g., reserved forests). The project will, however, support activities in settlements already exist in those areas, proposals for funding should be in compliance with any local regulations on land management and other provisions of the protected area management plan. The project will also allow rehabilitation of existing infrastructure which has already been developed (e.g., existing paths or tracks for tourism purposes) is allowable if the respective subproject investment is in line with the park development/management plan, and subject to agreement of Union authorities. These descriptions are included in the negative list of the ESMF. Potential adverse impacts from project activities are expected to be site-specific with limited and manageable footprint. New construction of infrastructure that has the potential to cause significant impacts (e.g. degradation of natural habitats, protected forests, or cultural resources) will not be eligible for financing, as well as any activities requiring land acquisition or restrictions on land use. Sep 23, 2019 Page 19 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) From an environmental perspective, the impacts of these small-medium scale works and livelihood supports activities are expected to be localized and can be prevented or reduced to acceptable levels through the use of Environmental Codes of Practice (ECOPs) or Environmental Management Plans (EMPs) that provide for good practices for construction and livelihood related activities. Such potential temporary impacts are related among other thing to: (i) air pollution/dust, noise, vibration from construction; (ii) improper disposal of wastewater from livelihood activities/construction or operations of civil works; (iii) temporary pollution of soil and surface waters due to accidental spillage of fuel from construction activities; (iv) safety hazards including worker safety; (v) sourcing of construction materials; (vi) community health risk related to use of pesticide; (vii) risk due to presence of unexploded ordinances (UXO) or landmines in sub-project areas or transportation route. Since the exact location of sub-projects and activities are not known at the time of appraisal, an ESMF which includes screening forms and guidelines for the application of Environmental Codes of Practice (ECOPs), a simplified Environmental Management Plan (EMP), Physical Cultural Resources (PCR) management framework and chance find procedures, Pest Management Plan (PMP) and Landmines risk management and chance find procedures consistent with applicable safeguards policies. The ESMF has been prepared by the DRD to guide the preparation of site-specific environmental and social safeguard instruments when sub-project activities and locations are identified. To further limit potential safeguards risks associated with sub-projects, those exceeding a value of 60,000,000 kyat (about US$40,000) would require a prior review and no objection from the World Bank. While the project aims to deliver both social and economic benefits, the project also has the potential to generate adverse social impacts due to the the sensitive locations targeted. The project will operate in conflict settings and has the potential for exclusion of minority groups and/or other vulnerable or disadvantaged groups or women to decision- making processes and access to project benefits. A social assessment has been undertaken to understand the potential for risk and impacts as a result of project. The assessment also addresses the need to ensure benefits reach all groups including ethnic groups when they are present in the project area. The adverse impacts are predictable and will be managed by incorporating participatory and inclusive processes into the design of the project across all components. The identification process for sub-projects will engage communities and where relevant, Civil Society Organisations (CSOs) and Ethnic Armed Organisations (EAOs). Any activities requiring land acquisition or restrictions on land use will not be eligible under the project. Project benefits include improved infrastructure and economic opportunities that will take into consideration the needs of different groups in a community. These benefits have the potential for improved knowledge, education, health and well-being. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Overall, the project's greatest risk of Indirect adverse impacts on the environment and human health may emerge from an increased use of chemical fertilizers and pesticide as a result of improved irrigation or livelihood support activities financed under the project. Therefore, the ESMF has included requirements for training on pesticide handling and management and integrated pest management to the farmers in the areas where new or rehabilitated irrigation systems would be supported under Component 2, and where Component 3 would support increased agriculture production that might increase the use of pesticides. All other adverse environmental impacts are believed to be small-scale, site-specific and temporary that can be avoided or mitigated through the application of simple ECOPs or other actions identified through EMPs Potential indirect social impacts include project benefits of improved knowledge, education, health and well-being. Potential indirect adverse social impacts may emerge if engagement processes do not take into account the barriers to participation by the different groups that make up a community, potentially leading to further excluding those that Sep 23, 2019 Page 20 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) are vulnerable, landless, and/or marginalized from receiving project benefits. To mitigate this, the project would ensure and monitor the proper timing of engagement and activities and access to information taking into account needs of women, single parent-headed households, different ethnic groups and their representatives, those with limited literacy, and or otherwise marginalized. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. At the overall project level, no alternatives were considered to avoid or minimize adverse impacts given that the assessment of the task team and safeguard specialists is that the negative impacts are minimal, widely dispersed and manageable, and far outweighed by the positive social, environmental and economic impacts of the project as a whole. However, at sub-project level, communities would review and consider sub-project options for financing from the perspective of an alternative analyses taking into account feasible alternative, technology design and operation. 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. A social assessment and an Environmental and Social Management Framework (ESMF) have been prepared to understand and address social and environmental risks that may emerge at the subproject level. The design of the safeguards approach to and instruments for the PPCP has benefited greatly from the NCDDP implementation experience. Key lessons learned include: (i) the effective use of ECOPs and EMPs as safeguards instruments appropriate for CDD type activities; (ii) the use of visual safeguards materials (including in major ethnic languages) for use at the community level; (iii) use of the participatory social assessment to facilitate safeguards implementation and particularly the engagement of marginalized groups, (iv) development of a training of trainers program on safeguards provided for technical facilitators; (v) successful track record of the Department of Rural Development (DRD) in working with other line departments to support safeguards issues that emerged, including on training and capacity building of project staff and community members on cultural resources and on dealing with chance landmine finds in conflict-affected areas. Finally, six years of NCDDP implementation involving more than 20,000 sub-projects, showed that ECOPs were sufficient to manage and mitigate most risks from these small-scale sub-projects, with EMPs not needed for most of the sub-projects given the limited scale of the associated environmental impacts. In the case of Involuntary Resettlement, while the Policy was triggered, its application has not been necessary and small land impacts have been managed through Voluntary Land Donation (VLD) or adjustment of site of subproject activities. PPCP will continue to apply these good practices learned in project design, implementation and monitoring. An initial capacity development needs assessment for understanding and managing social and environmental risk and impact has been undertaken as part of the project preparation. Support has been identified at different institutional levels. At the Union level, the lead project implementing agency will be the DRD which have staff at the national level who are familiar with World Bank safeguards policies. The DRD has extensive experiences implementing on-going NCDDP project with Satisfactory safeguards performance. DRD has experience on providing training on safeguards requirements to township level implementing staff, implementing, supervising and reporting on safeguards. The current NCDDP MIS tracks key safeguard measures-- including reporting on VLD cases-- and progress reports cover these issues. The DRD has assigned three staff and consultants to works on safeguards preparation of PPCP. The Union level DRD will focus on ensuring the systems for managing environmental and social risk are in place and Sep 23, 2019 Page 21 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) functioning including trainings. This includes the need to have sufficient and experience social and environmental specialists to support the implementation of the ESMF. The specialists may require specific training on key social and environmental safeguards instruments. Below Union level, state DRD staff capacity will need to be developed for the implementation of the requirements under the ESMF. At the township level and below, where all project investments that have safeguard implications are located, adequate capacity exists within Township DRD for safeguards implementation under component 2.1 (village infrastructure) and component 3 (livelihoods support). However, specific training may be required for implementation of Operations Manual, including applicable safeguards procedures. Furthermore, project field staff (facilitators) who undertake engagement with villages, including on applicable safeguard policies such as minor repair and operational guidance during subproject implementation, may need training on inclusive engagement. This training of township and village staff is incorporated in the project plans and budget. The State Governments that lead implementation of the medium-scale infrastructure component (component 2.2) will contract out technical supervision and safeguard support at township level to qualified consultant firms. The contracted consultant undertakes the initial environmental and social impact screening for all investments under component 2.2, propose mitigation measures, and would be responsible for monitoring implementation of safeguards by works contractors under this component. At the village tract and village level, training and capacity building will be provided under the project for village-level volunteers, the safeguard subcommittee members, and Village Committee and Village Tract Committee members. These community members, with support from project facilitators, will ensure the preparation and application of all relevant safeguard instruments (including screening and application of the project negative list) and safeguards monitoring. During the first year of implementation, the DRD will develop the detailed training capacity building plan to address the capacity constraints identified above. The PPCP will invest heavily in capacity development at all levels to ensure that subprojects are implemented in an environmental and socially sustainable manner and in line with ESMF requirements. DRD will draw on community training materials already prepared under the NCDDP, which are simple (including simplified sections of the project operations manual kept at the community level for reference during subproject implementation) and prioritize the use of illustrations (comics and photos on safeguard issues and requirements, grievance handling, fraud and corruption issues, etc.) to be accessible to community members who are illiterate. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. As part of the PPCP preparation process, to date approximately 100 separate consultations on overall needs and project design options and elements have been carried out with over 800 individuals representing approximately 70 groups (see below). These consultations have been conducted in six central urban locations at national and state-level (Yangon, Nay Pyi Taw, Hpa-an, Mawlamyine, Loikaw, Taungoo,), seven potential townships (Bilin, Thandaunggyi, Thandaung, Leiktho, Hlaingbwe, Kyainseikyi, Hpasaung and Hpruso) and rural communities where the project is likely to be implemented. These consultations covered all aspects of project design and implementation including safeguard policies and procedures. Formal in-country disclosure of the draft ESMF took place on 9 September 2019 and the draft Social Assessment on 10 Sep 23, 2019 Page 22 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) September 2019. Consultations on the draft instruments has taken place in Kayin, Mon and Kayah States on October 2, 3 and 23, 2019, and at national level in Naypyidaw on October 25, 2019. Relevant comments from these consultations have been incorporated in the revised instruments. Further consultations will be held, and adjustments to the ESMF made, as additional states or regions are engaged in the project, and when participating townships are identified. Engagement methods to date have included: one-on-one meetings; formal and informal group presentations; focus group discussions; key informant interviews; and the sharing of information on the project. The approach and format of the consultations took into consideration cultural appropriateness, and barriers to language, literacy, and participation. Specific stakeholder groups consulted with to date include: 1) Potentially affected and beneficiary communities and their representatives: More specifically, this group consists of women, men, youth and elders from different ethnic groups (Kayin, Mon, Pa-O, Shan and Kayah/Karenni). Most villages are predominantly of one ethnic group but a few visited are composed of two or more groups. In addition, some villages visited include specific ethnic groups who are living outside of their main state (e.g., a Mon village in Kayin State, Kayin village in Mon State, Shan village in Kayah State, etc.) These consultations involved approximately 500-550 community members from eighteen villages from eight townships of Mon, Kayin and Kayah States. 2) Village/Township government: Representatives from GAD at different levels such as village administrator and/or village tract administrator and/or township administrator and members other government departments including DRD, GAD, Livestock, Agriculture, and Members of Parliament. A total of 10 meetings were conducted in eight townships in Mon, Kayin and Kayah States. 3) State government: Chief Minister, cabinet members, sectoral department directors that include Social Welfare, Energy, Finance, Budget, GAD, DRD, and Energy. Six state-level consultations took place in the capitals of the three initial target States for the PPCP-- Hpa-An, Mawlamyine and Loikaw. 4) Union government: Consultations have been carried out with representatives of the ministries of Planning and Finance, of Home Affairs, of Security and Border Affairs, DRD, Department of Agriculture, Department of Foreign Economic and Development (FERD), the State Counselors Office (SCO), the upper and lower houses of Parliament (Amyotha HluFPw and Pyithu HluFPw), and the National Reconciliation and Peace Center (NRPC). A series of consultation meetings were conducted with FERD, SCO, NRPC and DRD for implementation arrangements and other project details. Two multi-ministerial consultation workshops were also conducted with 20-30 senior level government representatives (Director to Director General) in Nay Pyi Taw. 5) Civil society: Civil society organizations and networks, youth organizations, women organizations, and human rights organizations were consulted in Yangon, Mon, Kayin and Kayah States. At least two large group consultation meetings (15-30 people) were carried out in Hpa-An and Loikaw, one large group meeting in Mawlamyine and Yangon and about 10-15 bilateral meetings in Mawlamyine, Hpa-an and Loikaw. 6) Representatives from several EAOs: About 40 in all from the NMSP, KNU, Karen National Liberation Army- Peace Council (KNLA-PC), Democratic Karen Buddhist Army (DKBA), Karenni National Progressive Party (KNPP)) at district, state and higher levels. Sep 23, 2019 Page 23 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) 7) Extension staff of the NCDDP working in likely project areas: About 90 facilitators including CFs and TFs working in NCDDP project areas of conflict-affected townships in Mon, Kayin and Kayah States. 8) Development partners: Representatives of several development partners at national level who make up the Southeast Myanmar Working Group and the Development, Humanitarian and Peace Support Group (EU, USAID, DFID, Swiss, New Zealand, DFAT, Sweden, etc.), and members of UN-INGO coordination groups in Mawlamyine, Hpa-An, and Loikaw have been consulted. In addition to extensive consultations in Myanmar, consultations were also undertaken on the Thai side of the Thai- Myanmar border (Chiang Mai, Mae Hong Son and Mae Sot), where a number of the EAOs anticipated to be involved in the project maintain their headquarters. This complemented dialogue with EAO representatives in Myanmar, but allowed for a discussion with a broader range of EAO senior leadership. This practice is consistent with broader EAO engagement in the peace process, where both the Myanmar government and other development partners active in Myanmar regularly hold dialogue with EAOs in Thailand to complement discussions taking place inside Myanmar. B. Disclosure Requirements OPS_EA_DISCLOSURE_TABLE Environmental Assessment/Audit/Management Plan/Other For category A projects, date of Date of receipt by the Bank Date of submission for disclosure distributing the Executive Summary of the EA to the Executive Directors 09-Sep-2019 30-Sep-2019 "In country" Disclosure Myanmar 09-Sep-2019 Comments The Environmental and Social Management Framework (ESMF) was disclosed on 09 September 2019 and the Social Assessment was disclosed on 10 September 2019. OPS_I P_DIS CLOSURE_TAB LE Indigenous Peoples Development Plan/Framework Date of receipt by the Bank Date of submission for disclosure 09-Sep-2019 30-Sep-2019 "In country" Disclosure Myanmar 09-Sep-2019 Comments Sep 23, 2019 Page 24 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) The Indigenous Peoples Planning Development Framework, which forms part of the ESMF, was disclosed on 09 September 2019. The Social Assessment was disclosed on 10 September 2019. OPS_ PM_D ISCLOSURE_TAB LE Pest Management Plan Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of submission for disclosure Yes 09-Sep-2019 30-Sep-2019 "In country" Disclosure Myanmar 09-Sep-2019 Comments The Pest Management Plan, which forms part of the ESMF, was disclosed on 09 September 2019. OPS_PM_ PCR_TABLE 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 (to be filled in when the ISDS is finalized by the project decision meeting) OPS_EA_COMP_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 and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OPS_ NH_COM P_TABLE OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? No If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? No OPS_ PM_COM P_TABLE Sep 23, 2019 Page 25 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) OP 4.09 - Pest Management Does the EA adequately address the pest management issues? Yes Is a separate PMP required? Yes If yes, has the PMP been reviewed and approved by a safeguards specialist or PM? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? Yes OPS_ PCR_COM P_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 impacts on cultural property? Yes OPS_I P_COM P_TABLE OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate) been prepared in consultation with affected Indigenous Peoples? Yes If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? Yes If the whole project is designed to benefit IP, has the design been reviewed and approved by the Regional Social Development Unit or Practice Manager? Yes OPS_F O_COM P_TABLE OP/BP 4.36 - Forests Has the sector-wide analysis of policy and institutional issues and constraints been carried out? NA Does the project design include satisfactory measures to overcome these constraints? NA Does the project finance commercial harvesting, and if so, does it include provisions for certification system? NA OPS_ PIW_COMP_ TABLE OP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? NA If the project falls under one of the exceptions to the notification requirement, has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? Sep 23, 2019 Page 26 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) Yes Has the RVP approved such an exception? Yes OPS_ PDI_ COMP_TAB LE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for disclosure? Yes 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 and local NGOs? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes CONTACT POINT World Bank Sean Bradley Lead Social Development Specialist Nikolas Myint Senior Social Development Specialist Borrower/Client/Recipient Republic of the Union of Myanmar Sep 23, 2019 Page 27 of 28 The World Bank Myanmar Peaceful and Prosperous Communities Project (P168107) Implementing Agencies Ministry of Agriculture, Livestock and Irrigation Khant Zaw Director General kzaw.dda@gmail.com FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Sean Bradley Task Team Leader(s): Nikolas Myint Approved By Safeguards Advisor: Peter Leonard 14-Nov-2019 Practice Manager/Manager: Susan S. Shen 15-Nov-2019 Country Director: Degi Young 20-Nov-2019 Sep 23, 2019 Page 28 of 28