The World Bank Youth Employment Transformation Initiative (P160696) Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 03-Jun-2019 | Report No: PIDISDSA24109 Jan 04, 2019 Page 1 of 16 The World Bank Youth Employment Transformation Initiative (P160696) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Nepal P160696 Youth Employment Transformation Initiative Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) SOUTH ASIA 03-Jun-2019 29-Aug-2019 Social Protection & Jobs Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Nepal Ministry of Labor, Employment and Social Security Proposed Development Objective(s) To improve employment services and labor market outcomes, especially for youth. Components Strengthening of Employment Promotion Systems and Services Improving labor market outcomes of the vulnerable Project management, monitoring and evaluation, and capacity building PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 120.00 Total Financing 120.00 of which IBRD/IDA 120.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 120.00 IDA Credit 120.00 Jan 04, 2019 Page 2 of 16 The World Bank Youth Employment Transformation Initiative (P160696) 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. Over the past decade, Nepal’s economy has performed reasonably well. Growth averaged 4.3 percent (at market prices) over 2005-15. Although declining as a share in the economy, agriculture continues to play a large role, contributing over 30 percent of value-added. The service sector has grown in importance, accounting for half of value-added in recent years. Industry and manufacturing have grown more slowly and their relative share in the economy has averaged 16 percent of GDP over the past decade. Similarly, exports continue to struggle, while imports are fueled by remittances. However, remittance as a share of GDP has recently been on a declining trend due to lower oil prices that have impacted economic prospects in those countries with large Nepalese migrants. Inflation was in single digits for most of the past decade, with the peg of the Nepalese rupee to the Indian rupee providing a nominal anchor. Fiscal balances remained sustainable owing to strong revenue growth and modest spending. The incidence of poverty, measured against the national poverty line, fell by 19 percentage points between 2003/04 and 2010/11. In 2010/111, 15 percent of the population was counted as poor. Most multidimensional indicators of poverty also showed improvements across regions in Nepal. However, these gains remain vulnerable to shocks and setbacks, as evidenced by the 2015 earthquakes which were followed by trade disruptions resulting in GDP growth of 0.6 percent in 2016, the lowest in 14 years. 2. Data released by the Central Bureau of Statistics (consisting of a revision of the FY2017 growth rate and an updated estimate for FY2018), show that growth has been strong, despite the external shock from floods. In mid-August 2017, the worst flood in decades destroyed 64,000 hectares of standing crop, contributing to an estimated reduction in the agriculture growth rate from 5 to 2.8 percent (in FY2017 and FY2018, respectively). This contributed to a reduction in overall GDP growth from 7.9 to 6.3 percent in FY2018. Government revenue continued to perform well but spending also picked up significantly in FY2017 compared to previous years. Nevertheless, ambitious expenditure targets envisioned in the budget have not been met and the quality of spending has not improved with 60 percent of the capital spending occurring in the last quarter. Also, spending pressures have increased in the first half of FY2018 due to fiscal transfers, as well as spending on elections, capital goods and the transition to 1Poverty data were last updated in 2010. The World Bank will be collaborating with the Central Bureau of Statistics to update national poverty estimates using the Annual Household Survey data (2013/14 – 2016/17) and prepare the next Nepal Living Standard Survey. Jan 04, 2019 Page 3 of 16 The World Bank Youth Employment Transformation Initiative (P160696) federalism. High inflation in the past two years has moderated sharply due to moderating inflation in India and improving supply side constraints. 3. Inflation slowed to 4.2 percent (y-o-y) in December 2017 but increased to 6 percent (y-o-y) in March 2018 owing to a sharp uptick in vegetable prices. Meanwhile, credit growth slowed to 16.7 percent (y/y) in early 2018 compared to its peak of 31.9 percent in 2017; but deposits growth continued to decline, pushing up interest rates. On the external side, the cumulative effect of a sharp trade balance deterioration and a slow growth of remittances is putting significant pressure on the current account. Economic activity, affected by the worst floods in decades, is particularly affecting agriculture output. This contributed to the slowdown in growth from its peak of 7.9 percent in FY2017 to an estimated 6.3 percent in FY2018. 4. A new government, backed by an unprecedented majority in Parliament, took office on February 15, 2018. This follows successful elections for all three tiers (local, state and federal) of the new state architecture defined by the 2015 constitution, marking a protracted-but-successful conclusion of a political transition that began with the signing of the Comprehensive Peace Agreement in November 2006. At the sub-national level, funds, functions and functionaries hitherto managed by the central, district and village authorities are moving to the seven new provinces and 753 local governments for which new legislation, institutions and administrative procedures are being formalized as constitutionally prescribed. This profound level of state restructuring is expected to result in improved outreach and service delivery in the medium term but is likely to take time before becoming fully operational. Sectoral and Institutional Context 5. Nepal’s labor force remains overwhelmingly rural and informal. Nepal is still a largely agrarian economy with low labor productivity. Agriculture contributes only 28 percent of the gross domestic product (GDP).2 However, 70 percent of Nepal’s jobs are in agriculture. Over 80 percent of the population lives in rural areas and close to 90 percent of all jobs are in the informal sector.3 Only 17 percent of the labor force had wage jobs (13 percent of them in the private sector and 4 percent in the public sector). Wage employment is concentrated in urban areas. Urbanization has been fueled by the migration of rural population to more urban districts for jobs as young men seek opportunities mainly into low-skilled service activities. The main challenge in urban areas, is the lack of good employment opportunities. 6. Nepal’s emerging demographic transition offers the possibility of a significant dividend, if the emerging youth workforce can be channeled into more productive jobs. In 2011, of the total population of 26.5 million, nearly 21 percent was between 16 and 25 years, and 41 percent between 16 and 40 years, providing the country with an ongoing opportunity to benefit from the first demographic dividend.4 Nepal’s emerging demographic transition will reduce the dependency ratio steadily up to 2030. The labor force participation (LFP) is high (83 percent in 2016).5 Youth unemployment in Nepal is low by 2 “Composition of Gross Domestic Product by ISIC Division (at current prices).� April 25, 2018. Central Bureau Of Statistics (C BS). The Government of Nepal. 3 Around 35 percent of jobs are in self-employment. and fully 46 percent are unpaid family jobs. Unpaid family jobs account for 57 percent of all agricultural jobs and are especially common among youth and females (Nepal LFS 2008 and Understanding the Labor Market Decisions and Outcomes of Nepal’s Young Adults.� 2017. World Bank Group). 4 Census, 2011, Global Monitoring Report 2015/16 5 “Understanding the Labor Market Decisions and Outcomes of Nepal’s Young Adults.� 2017. World Bank Group. These statistics Jan 04, 2019 Page 4 of 16 The World Bank Youth Employment Transformation Initiative (P160696) international standards, ranging from 1 to 5 percent, depending on the gender and the youth cohort. 7. Most young market entrants get absorbed in low-income jobs in the informal sector or in unskilled jobs abroad, but are dissatisfied with their employment. The labor force is growing by around 400,000 a year. Most employed workers report that they found work through friends or family, and the main difficulty they experience in finding employment is insufficient employment opportunities or low remuneration offered. These young workers are dissatisfied with their employment, at a rate that is much higher than for workers in other SWTS-surveyed country.67 8. Females face additional challenges in accessing the labor market. Females are less likely to be out of the labor force (and not in education/training) and are also less likely to be searching for work when available. Between 2003/4 and 2010/11, participation of women in in the labor force declined by 6 percentage points.8 Women in the formal sector represent less than 1.5 percent of overall employment (CBS, 2009). Only 13 percent of SMEs in Nepal are fully or partially owned by women entrepreneurs. Less than 20 percent of women own assets, which limits women’s access to formal credit due to lack of collateral. Under such circumstances, women often rely on their own funds or informal borrowing, which tends to restrict their investment, and thus, the scale of operations. Moreover, there are significant gender pay gaps, with women’s pay an estimated 59.5 percent of men’s pay.9 Women also face workplace harassment and violence. Other constraints include the absence of separate toilets, inflexible working hours, lack of support and grievance mechanisms. 9. The Government of Nepal (GoN) has recognized, as a priority, the centrality of jobs challenge and creation of employment opportunities, especially for the youth.10 The budget speech for FY 2018/19 prioritized promotion of sectors that can create job opportunities, setting an ambitious target of creating 500,000 jobs in this fiscal year. The two new laws (Labor Act and Contributory Social Security Act approved in 2017) are expected to improve industrial relations.11 The Right to Employment Act, approved in 2018, specifies provisions relating to the right to employment guaranteed in Article 33 of the Constitution of Nepal. Following this, the GoN announced the Prime Minister’s Employment Program (PMEP). This flagship program envisions guaranteeing minimum employment of 100 days of work in labor-intensive public work programs (PWP) or a subsistence wage in absence of work.12 The PMEP targets unemployed individuals for short term employment and prioritizes, by design, the most vulnerable and envisions the are comparable to unemployment rates of 2 percent to 7 percent for youth cohorts within the 15–34 age group reported in the 2014–15 Nepal Annual Household Survey (NAHS) report (Government of Nepal 2016). 6 Elder, Sara 2014 7 Consistent with this, according to the 2012/13 Annual Household Survey conducted by Central Bureau of Statistics (CBS), Nepal has a labor underutilization rate of 27.8 per cent (Jobs and Skills for Youth: Review of Policies for Youth Employment of Nepal. July 2016. The International Labor Organization) 8 The female labor force participation was about 79.6% in 2016, is still higher than that of other South Asian countries. 9 This gender pay gap could be partially attributed to the difference in the working hours. 10 For the purposes of the project, youth are defined as individuals aged 16 –34 years. This definition largely overla ps with Nepal’s official definition (ages 15–40 years); it is consistent with the “extended youth� definition applied in other research internationally; and it is appropriate, given that sizable shares of men and women ages 15–24 years (24 percent and 17 percent, respectively, in 2010–11) are still attending education institutions. Because Nepalese law considers individuals as children at age 15 (Government of Nepal 2000), this project sets the minimum age for youth at 16. 11 Pandey, Jyoti. 2018. “Youth Sensitivity of Labor Laws and Policies,� in Youth Employment in Nepal ed. by Raju, Dhushyanth and Rajbhandary, Jasmine. World Bank Group. 12 Most of these jobs are expected to be created through local development activities at the local level in construction or rehabilitation of local infrastructure. Jan 04, 2019 Page 5 of 16 The World Bank Youth Employment Transformation Initiative (P160696) establishment of Employment Service Centers in each local level. 10. Nonetheless, the country is experiencing a complex set of job challenges, both on the supply and demand side of labor. On the labor supply side, while shortage of skilled labor has been an important constraint to growth, this is currently being addressed through another World Bank financed project on Enhanced Vocational Education and Training Project II (EVENT II). However, there continues to be a lack of a systematic approach to supporting young women and men to (re)enter the labor market. This is further exacerbated by a lack of a robust information system that allows the GoN to fully understand the needs of the labor market. On the labor demand side, domestic jobs growth has been constrained by multiple factors surrounding private sector development (and thus labor demand), including competitiveness and business climate challenges; financial sector weaknesses; a weak-supporting environment for entrepreneurship; and significant infrastructure gaps. Institutional Context 11. At the central level, MOLESS is responsible for labor and employment policies in the country. MOLESS’ major functions include plan and program formulation, implementation, and monitoring and evaluation of labor and employment policies, the provision of employment services, job creation, data collection and analysis on the labor market, social security of laborers, management of relationship between workers and employers, with trade unions and other labor agencies, and labor permits both, domestic (for foreign workers) and international (for Nepali workers in foreign employment). Through the recently announced PMEP, MOLESS will be establishing Employment Service Centers in each of the Local Governments. 12. The new constitution has identified exclusive and concurrent powers regarding labor and employment between the federal, provincial, and local government. The Local Governance Act, 2017 further details out the roles and functions of the local governments around labor and employment. These include: (i) establishment of employment information system; (ii) information management of domestic and foreign laborers as well as Nepali labor force in foreign employment; (iii) data collection and management of competent human resources in different sectors; (v) management and operation of employment information centers; (vii) financial literacy and skills training for labor force going in foreign employment; and, (viii) social and economic reintegration of returnee migrant workers. 13. The GoN with support from donors has several initiatives underway. These initiatives address some of the important market and policy failures and institutional constraints relevant to job creation (access to employment support programs, slow economic growth, and improving jobs outcomes for youth). However, there is still need for an integrated set of supply side and demand side interventions in Nepal to improve youth jobs outcomes, anchored in a robust set of goals. 14. The proposed project on Youth Employment Transformation Initiative will aim to address gaps in the labor supply side interventions and complement ongoing initiatives on the labor demand side. On the labor supply side, the project will aim to address the lack of a systematic approach to the provision and management of employment promotion services and systems to support jobseekers. On the labor demand side, the project will aim to generate short term temporary employment opportunities for the most vulnerable which can improve their short and medium term productivity. The focus on youth will Jan 04, 2019 Page 6 of 16 The World Bank Youth Employment Transformation Initiative (P160696) address high risks of fragility and conflict, which has been discussed above. C. Proposed Development Objective(s) Development Objective(s) (From PAD) To create quality jobs and enhance labor market outcomes, especially for youth. Key Results 15. The project aims to support an integrated set of supply side interventions to improve job outcomes, especially for youth. The project’s performance in achieving its development objective would be measured through the following key indicators:  Number of Employment Service Centers (ESCs) which are established and functional  Share of people (disaggregated by gender and age group) supported by the project who take up a training, temporary work, or employment opportunity within twelve months of registration (Percentage) D. Project Description 16. In order to achieve its development objectives, the project, over a five-year period is expected to support three components. Component 1: Strengthening of Employment Promotion Systems and Services [ 44.5 million USD] 17. The objective of Component 1 is to support the GoN in building a platform for systematic approach to provision of employment promotion services. Activities supported by Component 1 will build the foundation for: (i) effective delivery of PMEP; (ii) increased access to employment and training opportunities, including those generated under project Components 2; and (iii) an integrated approach to social protection and employment promotion services. The component will achieve this through: (i) support to establishing functional employment service centers and (ii) development of a holistic national employment information management system (EIMS) to support program management and employment policy formulation. Component 1a: Increasing access to employment opportunities 18. This sub-component will support effective and systematic provision of employment promotion and unemployment support services by strengthening the Employment Service Centers in the Local Governments to deliver their functions. The core functions of ESC are outreach; registration of the unemployed and other jobseekers; profiling and referral to relevant jobs, including placement into temporary employment programs, and other employment promotion services tailored to beneficiaries’ needs and aspirations; and to ensure effective delivery of minimum employment through temporary employment. The ESCs will support PMEP to effectively and efficiently deliver minimum employment and reach the targeted beneficiaries. Given that young females are likely to face additional challenges while entering and navigating the labor market, selected ESCs will provide additional services for females, such Jan 04, 2019 Page 7 of 16 The World Bank Youth Employment Transformation Initiative (P160696) as “ready to work job clubs� in selected locations.13 19. The sub-component will utilize synergies with existing government and donor projects that focus on provision of employment promotion services (such as skill training, apprenticeship and on-the-job training, self-employment and enterprise development support and safe migration information provided). Component 1b: Development of holistic national employment information management system (EIMS) 20. Component 1b will support enhancement and integration of information management systems for the efficient and effective functioning of employment promotion services in Nepal (including PMEP). This will include assessments of existing systems, identification of needed design enhancements, hardware and software procurement and capacity building necessary to ensure that information from these systems is effectively utilized for program management and policy making. The assessments and enhancements will be made around four areas: (i) Strengthening of unemployment and jobseeker registration, monitoring, and updating functions in ESC MIS; (ii) Enhancement of temporary employment module in the MIS including managing the temporary employment which will include modules for enrollment, payment, grievance redress mechanism and citizen engagement.; (iii) Expansion of jobs portal functionality; (iv) System integration into a holistic EIMS. The holistic EIMS will integrate information from all these systems in a way that will allow the GoN to track placements and generate statistics on unemployed, jobseekers,14 employers, job listings, local and national skills demand, and existing employment support programs. Component 2: Improving labor market outcomes of the vulnerable (USD 67 million) 21. Component 2 aims to supports skills and productivity enhancement for poor and vulnerable job- seekers through on-the-job training and life skills training along with temporary employment aligned to the Prime Minister Employment Program (PMEP). 22. The design of this component follows the international practices that combine cash incentives and training (which includes skill training, mentorship, financial literacy, and soft skills trainings) to increase the employability of beneficiaries. Such integrated package seeks to not only provide temporary employment but also to address some of the main constraints (such as lack of relevant skills, for example) that prevent the poor and vulnerable unemployed from accessing the labor market. 23. More specifically, this Component will support government initiative of providing temporary employment and on-the-job technical and life skills training to the unemployed (focusing on youth) registered in the Employment Service Centers. Upon selection, the beneficiaries will receive the following package of support: (a) 100 days of temporary employment in maintenance of public assets and provision of services; and (b) up to 50 days of on-the-job training and life skills. 13 Job club and soft-skill training services will be provided only in a few select locations where they are predicted to be the most needed and utilized (resulting in coverage of approximately 20% of all ESCs). 14 Information on unemployed and jobseekers will be disaggregated by gender, caste, age, location, etc. Jan 04, 2019 Page 8 of 16 The World Bank Youth Employment Transformation Initiative (P160696) Component 2a - Temporary employment in maintenance of public assets and provision of services 24. The component will finance cash benefits for an average of 40 individuals per LG15, benefiting around 30,000 individuals and creating about 4.5 million workdays a year. Moreover, the selection of the beneficiaries will ensure a gender balance of workers. The cash benefits for temporary employment are defined as a daily remuneration set as the minimum wage rate as per PMEP guidelines. 25. This activity will complement temporary employment opportunities financed through the LG development plans and aims at improving access to and quality of services by maintaining the functionality of key public assets and supporting provision of services. Temporary work could be in sectors including (a) maintenance and cleaning of roads16, irrigation canals, schools, community centers and health facilities, public parks, water taps/wells/pumps; (b) afforestation; (c) provision of child and elderly care support, (d) delivery youth sports activities, and (e) support to reading clubs in primary schools. 26. Cash benefits will be paid electronically to each beneficiary by the LGs. The project funds will be made available to LGs as conditional grants. The project will not finance inputs such as material, equipment and safety gears for the selected tasks. Financing of this inputs will reside with LGs. Component 2b - Improving employability of the beneficiaries 27. The on-the-job training activities are expected to increase skills for temporary employees as well as to increase their employability to access other employment opportunities. The training will be delivered through short on-the-job training modules focused on specific trades. These modules will be designed based on existing curricula in consultation with TVET stakeholders in Nepal. No certification will be provided to the beneficiaries. The proposed on-the-job training activities will be defined in the POM. 28. The life-skills sessions are expected to promote goal-setting, decision-making, among beneficiaries and financial literacy to promote some behavioral changes and help them engage in more productive and sustainable activities, enabling them to become less vulnerable to shocks, and “graduate� from poverty. The life-skills sessions will build on existing knowledge and experience in Nepal including the Adolescent Girls Employment Initiative (AGEI) and other World Bank-financed projects around the globe, including the Benin Youth Employment Project. It will also address gender issues through delivery of specific sessions on women’s empowerment and gender, including modules on reproductive health and family planning. The proposed set of life-skills modules will be defined in the POM. 29. This activity will finance the design and implementation of on-the-job and life-skills training activities. The design of the training modules and training of trainers will be outsourced by the PMU. Component 3: Project Management, Monitoring and Evaluation and Capacity Building (USD 8.5 million) 30. Component 3 will support: (a) the establishment and maintenance of effective implementation arrangements at federal and local levels; (b) the set-up of a monitoring and evaluation mechanism to track 15Nepal has 753 Local G300overnments 16For roads, the activity will build on the experiences of road maintenance groups in Rural Access Program (RAP) and Strengthening National Rural Transport Program (SNRTP). Jan 04, 2019 Page 9 of 16 The World Bank Youth Employment Transformation Initiative (P160696) the progress (spot checks, beneficiary feedback mechanisms, a grievance redress system, and policy reviews) and conduct evaluation (including a robust impact evaluation); and (c) capacity building programs for project implementation, management, PMEP service delivery, and cross-components activities. 31. For capacity building, this component will cover training on general project management, and support the communication with government agencies, partners, civil societies, private sector, beneficiary and other stakeholders. Orientation workshops and knowledge sharing events will be conducted periodically. To strengthen the PMEP service delivery, this component will also support the development and delivery of training materials and Training of Trainers (TOT). Capacity building activities to LGs will aim to improve their administrative capacity of ESCs to deliver their core functions and manage temporary employment plus programs. Additional capacity building around financial management will also be provided, particularly to ensure appropriate reporting back of project financing. E. Implementation Institutional and Implementation Arrangements 32. The implementing agency of this project will be Ministry of Labor, Employment and Social Security (MOLESS). The project is closely aligned with the government’s flagship program, the Prime Minister’s Employment Program (PMEP) that is under MOLESS. The implementation arrangements have been closely aligned with the institutional set-up of PMEP. 33. An Inter-ministerial Project Steering Committee (PSC) will be established, chaired by MOLESS Secretary, to provide policy guidance and cross-sectoral coordination. The PSC would consist of senior officials from the National Planning Commission, Ministries of Finance, Industry, Physical Infrastructure, Office of the Prime Minister (as per the Steering Committee in the Right to Employment Act) as well as representatives of ministries of Agriculture, Education, Youth, Tourism, and up to 2 representatives of private sector. A Project Technical Committee (PTC) with sub-committees consists of officials and technical experts of relevant ministries/agencies as well as the private sector will also be set up to provide technical guidance to the proposed Project. 34. MOLESS will set up a Project Management Unit (PMU) to oversee the overall project implementation, manage the day-to-day operations and provide guidance and training to LGs. The PMU will be led by a Project Director, the Joint Secretary within MOLESS heading the PMEP. The component managers will be the 2 Under Secretaries of the PMEP, with one leading for component 1 and 2, and the other leading on component 3. In addition, there will be a MOLESS Finance officer, a PMEP accounts officer and two PMEP section officers. The PMU will consist of MOLESS staff and consultants (who will be financed under the Project). The consultants in the PMU include 1 Financial management specialist, 2 procurement specialists (reducing to one in year 2), 1 environmental safeguards specialist, 1 social safeguards specialist, 1 Communications specialist, 1 IT/Management Information specialist, 1 monitoring and evaluation expert and 1 project officer. The number of consultants at PMU will be reviewed regularly and can be reduced as the PMU capacity increases. Project Management Unit (PMU) housed in MOLESS will oversee the overall implementation of the project activities, administer day-to-day operations that include management of procurement, financial management safeguards, and monitoring and evaluation (M&E). Jan 04, 2019 Page 10 of 16 The World Bank Youth Employment Transformation Initiative (P160696) 35. At the provincial and local levels, the proposed Project will align with the PMEP institutional arrangements as appropriate. As such in each of the seven provinces, there will be a Provincial Project Coordinator, who will be the Under Secretary of provincial Ministry of Social Development. The Provincial Coordinator will carry out monitoring and evaluation activities and maintain coordination between the local levels and the center. S/he will be supported by an assistant to be financed by the Project. 36. At the local levels, the LGs, with the support of ESC staff, will be responsible for project management covering basic functions of financial management, procurement and safeguards. One of the personnel supported by the project financing will have administrative responsibilities. . F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) Project locations and activities will be across the country G. Environmental and Social Safeguards Specialists on the Team Jaya Sharma, Social Specialist Annu Rajbhandari, Environmental Specialist SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Anticipation of some possible minor civil works Environmental Assessment OP/BP 4.01 Yes financed through the Local governments under component 2 Performance Standards for Private Sector No Activities OP/BP 4.03 Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No . Pest Management OP 4.09 No Physical Cultural Resources OP/BP 4.11 No Indigenous People and vulnerable communities exist Indigenous Peoples OP/BP 4.10 Yes throughout Nepal and they are the intended Jan 04, 2019 Page 11 of 16 The World Bank Accelerating Inclusive Jobs Growth for Youth in Nepal (P160696) beneficiaries. Since beneficiary selection under the program will be done nationwide this policy has been triggered. Involuntary Resettlement OP/BP 4.12 No Safety of Dams OP/BP 4.37 No Projects on International Waterways No OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 No 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 proposed project activities are not expected to cause significant adverse environmental impacts and may be summarized as follows: minor rehabilitation/maintenance of community assets through temporary employment of the vulnerable. But these potential environmental impacts are minor and can be easily managed during project implementation. There will be no involuntary land acquisition. Some minor civil works anticipated under the project will be limited within the existing premises of the beneficiary institutions. Positive social impacts are anticipated under the project. The proposed activities aim to improve employment services and labor market outcomes programs, especially for youth. This includes activities especially target vulnerable community including youth, women, indigenous people, unemployed among others. Nepal has fifty-nine officially recognized indigenous groups, which make up 38% of the population. The National Federation of Indigenous Nationalities has classified the IP (known as Adivasi Janajati in Nepal) into five different categories according to their economic and social features. Of these five sub-groups, the two most-disadvantaged are referred to as 'endangered' and 'highly marginalized groups.' . Besides the endangered and highly marginalized IPs, Nepal also has significant numbers of other equally vulnerable groups including Dalits, women, people with disabilities, poor, etc. These groups continue to experience marginalization, exclusion and discrimination because of their social and economic identities. Nepal Jobs Project aims to ensure inclusion and provide equal access of these groups to quality employment services, training, short term and long term job opportunities and as such, they are direct beneficiaries of the project. However, specific concerns to be addressed with respect to these vulnerable groups, including endangered and highly marginalized IPs, are: poor access to information, discrimination, and access to information in languages they understand and use, including in their mother tongues or linguistic groups, to name a few. In addition particularly for women, work based harassment and gender based violence can be additional challenges. In addition particularly for women, lack of quality jobs, work based harassment, gender based violence, lack of family support can be additional challenges. Women belonging to IPs face additional challenges and require special needs due to language, location, differing gender roles and responsibilities, social norms. Business- women/women entrepeneurs also face additional barriers in the marketplace. Jan 04, 2019 Page 12 of 16 The World Bank Accelerating Inclusive Jobs Growth for Youth in Nepal (P160696) 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The minor maintenance works (under component 2) is not expected to have any negative long term impact. In terms of social impact, the project aims to improve access of vulnerable groups, especially youth to employment services and short and long term employment linked opportunities. In terms of social impact, there will be no expansion or widening of the infrastructures to be maintained. The maintenance works will be carried out on those infrastructures where construction is done prior to the involvement of the project. The project takes a broader gender equality and social inclusion approach in improving access of vulnerable groups, especially women, youths to employment services and short and long term employment linked opportunities. Mitigation measures and actions are developed to address any adverse impact on these groups. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. NA 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. The Government of Nepal drafted an ESMF, which included both Environment Management Framework (EMF) and VCDF, for the project. EMF establishes the procedures for addressing the potential environmental impacts and outlines environmental assessment procedures and mitigation requirements for the activities to be supported under the project. It provides details on procedures, criteria and responsibilities for subproject screening, preparing of subproject specific Environmental Management Plan implementing and monitoring. VCDF was prepared as a part of ESMF. It provides procedural guidelines for screening of target groups, consultation, incentive mechanisms, grievance redressal mechanisms and proposes actions plans to ensure that intended IPs and vulnerable groups benefits. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders for these project include government representatives of Ministry of Labor, Employment and Social Security, other ministries including Ministry of Education, Ministry of Industry, Commerce and Supplies, Ministry of Youth, Provincial and Local Governments, local communities, and youth (and youth representative organizations) and the private sector. For revision of ESMF, consultations were carried out with key stakeholders including IPs and vulnerable groups. The consultation was held on January 24, 2019. Consultation with these stakeholders will continue during implementation. The draft ESMF was published on the MOLESS website prior to the consultation. The revised ESMF was again published on the MOLESS website on May 29, 2019, and also reflected the removal of one component. During implementation the safeguards documents will be disclosed at project locations. Jan 04, 2019 Page 13 of 16 The World Bank Accelerating Inclusive Jobs Growth for Youth in Nepal (P160696) 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 29-May-2019 03-Jun-2019 "In country" Disclosure Nepal 29-May-2019 Comments MOLESS disclosed the draft ESMF on their public website prior to their consultation with stakeholders. However, as a significant component was later dropped, MOLESS disclosed the revised ESMF on their public website. The revised ESMF reflects the removal of one component, and associated reduction of project budget. OPS_I P_DIS CLOSURE_TA BLE Indigenous Peoples Development Plan/Framework Date of receipt by the Bank Date of submission for disclosure 29-May-2019 03-Jun-2019 "In country" Disclosure Nepal 29-May-2019 Comments MOLESS disclosed the draft ESMF on their public website prior to their consultation with stakeholders. However as a significant component was later dropped, MOLESS disclosed the revised ESMF on their public website. The revised ESMF reflects the removal of one component, and associated reduction of project budget. 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_I P_COM P_TA BLE Jan 04, 2019 Page 14 of 16 The World Bank Accelerating Inclusive Jobs Growth for Youth in Nepal (P160696) 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? NA OPS_ PDI_ COMP_TA BLE 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 Jasmine Rajbhandary Sr Social Protection Specialist Jan 04, 2019 Page 15 of 16 The World Bank Accelerating Inclusive Jobs Growth for Youth in Nepal (P160696) Borrower/Client/Recipient Nepal Shree Krishna Nepal Ministry of Finance sknepal40@mof.gov.np Implementing Agencies Ministry of Labor, Employment and Social Security Mahesh Prasad Dahal Secretary maheshdahal19@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 Task Team Leader(s): Jasmine Rajbhandary Approved By Safeguards Advisor: Practice Manager/Manager: Antonia T. Koleva 19-Jun-2019 Country Director: Faris H. Hadad-Zervos 20-Jun-2019 Jan 04, 2019 Page 16 of 16