The World Bank Agriculture Modernization Project (P168014) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 06/09/2019 | Report No: ESRSC00599 Jun 09, 2019 Page 1 of 12 The World Bank Agriculture Modernization Project (P168014) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) North Macedonia EUROPE AND CENTRAL ASIA P168014 Project Name Agriculture Modernization Project Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Agriculture Investment Project 11/6/2019 2/12/2020 Financing Borrower(s) Implementing Agency(ies) Ministry of Finance Ministry of Agriculture, Forestry and Water Economy Proposed Development Objective(s) Public Disclosure Improve competitiveness and strengthen public institutions in the agriculture sector. Financing (in USD Million) Amount Total Project Cost 40.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The project will include the following component: Component 1: Promoting agriculture sector competitiveness. This component aims at enhancing farm-level competitiveness and fostering agricultural produce aggregation and market integration. It includes support to establish: (i) an advisory one-stop shop that will connect producers and agro-processors to a wide range of know-how and targeted quality advisory servces; and (ii) agriculture purchasing and distribution centers. Component 2: Strengthening institutional capacity for public sector support. This component aims at enhancing public support services, including the capacity to design and deliver support to the agriculture sector. It will: (i) strengthen the Sector for Rural Development of the Ministry of Agriculture Forestry and Water Economy Sector in its policy Jun 09, 2019 Page 2 of 12 The World Bank Agriculture Modernization Project (P168014) design and monitoring functions, (ii) support the Paying Agency increase its capacity to implement newly accredited rural infrastructure measures, and (iii) support the Food Safety Agency. Component 3: Project Management. This component will provide overall coordination and implementation of project activities. D. Environmental and Social Overview D.1. Project location(s) and salient characteristics relevant to the ES assessment [geographic, environmental, social] The project will be implemented country-wide, supporting the construction of up to three collection centers at the locations to be identified during the implementation phase, establishment of a comprehensive system for processing and disposal of Animal By-Products (ABPs), including contsruciton of a rendering plant and ABP disposal facilities at a locaiton to be identified at a later stage, and refurbishment of the existing office premises of the Agency for Financial Support in Agriculture and Rural Development (AFSARD) in Skopje. Macedonia is a land-locked country located in the central part of Balkan Peninsula with an area of 25,333 sq km and population of approximately 2 million, half living in Skopje. The country’s terrain is mostly hilly, located between the Shara and Rhodope mountains, with the valley of Vardar between them. Three large lakes —Ohrid, Prespa and Dojran — are located on the southern borders, bisected by the frontiers with Albania and Greece. The region is seismically active and has been the site of destructive earthquakes in the past. Macedonia’s comparative advantages in agriculture lie in abundant labor, fertile soils, a range of moderate continental and Mediterranean micro-climates in the South (though with water deficiencies and occasional droughts in parts of the country) and natural upland pastures. About 49% of the total land area, or 1.16 million hectares (ha), is agricultural, split evenly between cultivable land and pastures; 37 percent% of land is forest, Public Disclosure the rest includes lakes and urban areas. Agricultural growth is largely determined by a growing but fluctuating crop sub-sector, with livestock making a stable but smaller contribution to agricultural productivity. The agriculture sector contributes 11% to GDP. Despite reasonably large share of rural population (42.9%), the share of full-time agricultural employment is only 17.9% because of the high share of part-time and informal employment. The agri-food industry is an important manufacturing industry in the country in terms of turnover (22.8%), employment (19%) and geographic footprint. Importantly, agri-food industry turnover is evenly distributed geographically, which underlines the unique role that agriculture can play in promoting growth and jobs in rural areas. Primary agricultural production remains caught in a low-productivity-low-income trap. With an average farm size less than 2ha and agricultural producers being semi-subsistent (48%), selling surplus production to local markets, production at scale, innovation and integration are not possible. Over 40% of agricultural holders were under 45 years of age in 2013. Structural constraints faced by the sector impede the younger farmers from realizing their potential on and off the farm and participating in the food value chain. Smaller agricultural producers and agri-food businesses lack access to new technologies, market opportunities, quality agricultural knowledge and skills in various areas, including business management and domestic and international marketing. Smaller producers, participate mainly in short value chains that typically end at local green or wholesale markets. As contract farming is not widely used in the country, transactions remain largely ad hoc and contract breaches and delayed payments are frequent issues. Current post- harvest operations further undermine product freshness and quality, while often providing products that are unsorted, of lower grade, and unsuitably packed for transport. The Project aims to support primary agricultural producers, cooperatives, primary producing agrobusiness as well as agro-processors. The vulnerability, small primary agricultural producers, comes mostly as combination of scale of production and lack of predictability of the revenues. This segment of farmers are part of value chain on ad hoc basis, with only predictable income from subsidies. The exact scale of informality will be further determined. Jun 09, 2019 Page 3 of 12 The World Bank Agriculture Modernization Project (P168014) D. 2. Borrower’s Institutional Capacity The project will be implemented by the Ministry of Agriculture, Forestry and Water Economy (MAFWE). Other agencies such as Advisory Agency or AFSARD, may also be involved in project implementation. The MAFWE will be responsible for handling environmental and social aspects related to the project activities. Its capacity is weak. While the MAFWE implemented Bank funded projects in the past, the last one was closed back in 2012, and there is a gap in respective knowledge and skills. Within the organizational structure of MAFWE, there is no dedicated unit to manage the environmental and social risks and impacts. In order to ensure the implementation of ESSs, the project will support full-time environmental and social consultancy services for MAFWE. The project will also support training sessions to designated MAFWE staff to assist with building a long-term and sustainable capacity at the institutional level. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Environmental Risk Rating Moderate The environmental risk is rated as Moderate because the project envisages new small-scale construction at up to three locations, and construction of the ABP processing plant and disposal faciliities at a location to be identified at a later stage. The civil works associated with the collection centers’ construction will most likely include typical ‘building envelope’ such as construction of walls, roofing, flooring, plastering, electrification, installation of heating systems, connection to sewage grid, with estimated square of each individual center not to exceed 2,000 m2. The scope of the Public Disclosure refurbishment works will most likely include renovation of the ceiling and wall cover, replacement of windows and doors, fixing the lighting, and some finishing works (painting, etc.). While the location for the construction of the ABP processing plant and disposal facilities, as well as the capacity of the facilities, are not known at this stage, it is anticipated that the potential environmental risks of the implementation of civil works will be those related to site/vegetation clearance, necessity to manage construciton waste and excessive materials, generation of waste waters, noise, dust and fumes due to the use of construction machinery. During the operational phase of the ABP processing and disposal facilities, the main risks will be assoicated with generaiton of odor to be minimized/mitigated, and organic wastes to be treated and disposed safely. The proposed works have relatively limited environmental footprint. Potential environmental risks and impacts are predictable, not significant in magnitude and site-specific with low probability of serious adverse effects to human health and/or environment. Certain risks might be related to the provision of services connecting producers and agro-processors to a wide-range of know-how and targeted quality advisory services related to biodiversity protection, sustainable water use and water management, etc. Those risks can be mitigated by ensuring high quality of the advisory services, which will promote incorporation of best environmental management practices in the agricultural development. While the current capacity of the implementing agency is assessed as weak, well-defined screening procedures will be put in place to ensure that the locations are selected so that to avoid environmentally sensitive areas and minimize potential environmental risks of the small-scale construction. The quality of the advisory services will be ensured throughout the project life, and capacity will be built under the project to sustain the achievements. Social Risk Rating Moderate The social risk is rated moderate. Project social risk mostly concerns ensuring vulnerable and small farmers benefit from the project, most notably from components 1 and 2. Government capacity in reaching out to small producers Jun 09, 2019 Page 4 of 12 The World Bank Agriculture Modernization Project (P168014) and agro-processors is low. Because of heavy engagement with EU delegation - the MAFWE is being prepared for negotiation start with EU whereby agriculture is complex chapter, this made available 50 mil euros for agriculture in last 7 year budget cycle, the Ministry gained and has a solid track record in engaging with organized (and formal) producers, and farmer groups, however, has limited experience engaging with small producers who tend to be unorganized, informal and dispersed in diverse locations. The project is good chance that the Ministry mainstreams inclusion of marginalized in their general consultation process both for policy preparations and policy implementation (definition of support measures). The issue is not the formality but the capacity of the Ministry which will be strengthened with the project. Risks and impacts related to land loss are expected to be limited, and it is possible to avoid land impacts. Component 1 will finance new constructions of collection centers and cooling facilities and will upgrade current building of Agency for the Support of Agriculture. There is possibility that some of the locations could be in the private land but it is not likely that significant physical or economic displacement would result as there is a sufficient choice of the parcels to ensure that the chosen sites are outside inhabited areas. Although the Ministry does not have in house experience with OP 4.12 there is cadre of consultants in Macedonia with abundance experience whom the project can hire as consultants. The plan is that the Ministry will hire expertise for environmental and social safeguards for this project, so the land acquisitions for the collection centers, if any, would be limited in space and impact. The most important social risk concerns stakeholder engagement and the challenge here will be how to engage and empower the smallest and vulnerable farmer families to have a say and gain and become part of the value chain that the project will support through the collection centers. The project should emphasize that special section in the stakeholder engagement both during the preparation and implementation is properly designed and implemented to Public Disclosure outreach and incorporate smaller and vulnerable farmers. Also, a task for the project would be that the Ministry builds capacity to mainstream engagement of vulnerable in their regular cycle of policy designs and policy implementation. Ministry due to engagement with EU and preparing itself for the EU Common Agriculture Policy has good track record in stakeholder engagement but this is mostly with interest groups and important producers and agro-processors. The Project should build capacity in the Ministry to include also the poorest farmers in the process. Labor related social risks are low. Labor related issues will not be a major challenge when it comes to contract workers (i.e. employees of civil works contractors), but they may be relevant to employees of project beneficiaries, especially with the seasonal workers. Based on experience with contracts of similar monetary value, both in WB and Govt projects of this size, the work contractors will be national companies and the labor will come from surrounding areas of where the collection centers will be built. Hence no labor influx is envisaged. There might be risks related to the management of employees of project beneficiaries (i.e. small producers and agro-processors), i.e. how they treat full time employees and seasonal workers. Formalizing seasonal employment has been challenge until now in Macedonia. This aspects will be further assessed during preparation and appropriate measures will be undertaken. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: Jun 09, 2019 Page 5 of 12 The World Bank Agriculture Modernization Project (P168014) The environmental impacts and risks are associated with Component 1 of the project that will support civil works including construction of up to three new collection centers of a relatively small size and refurbishment of the existing AFSARD office premises in Skopje, and will provide advisory services including those introducing best environmental management practices into the agricultural development (biodiversity protection, water management etc.); and with Component 2 which will support the establishment of ABP processing and disposal system/facilities. Specific environmental impacts will be defined and assessed once the location of specific sites are known. It is anticipated that the implementation of civil works (new construction and refurbishment) may cause certain typical adverse environmental impacts, such as temporary distortion to natural landscapes and surrounding communities, generation of construction and domestic wastes and waste waters, need to handle excessive materials (if any), noise and dust from construction machinery and works, etc. Certain impacts are also expected to occur during the operation of the collection centers, mainly related to the management of domestic waste and waste water. The operaiton of the ABP processing and disposal facilities will be assoicated with such environmental impacts as odor and generation of organic wastes waste waters. Respective mitigation measures will have to be proposed to duly address those impacts. The proposed project will neither finance purchase of pesticides nor result in increased use of other agro-chemicals. These typical environmental impacts as well as the legislative and regulatory framework, procedures, outline and institutional responsibilities of the preparation of site-specific Environmental and Social Management Plans (ESMPs) will be assessed and considered in the Environmental and Social Management Framework (ESMF) to be developed and disclosed, after reviewed and cleared by the Bank, by the Borrower prior to the project appraisal in November 2019. The ESMF will describe in detail the process for selection of locations for the collection centers and the ABP processing plant and disposal facilities to be constructed, and suggest a set of screening criteria which will ensure that potentially sensitive areas are avoided, and environmental footprint is Public Disclosure minimized. The ESMF will also address environmental and social aspects of technical assistance to be provided to agro-businesses under Component 1 (advisory services to connect producers and agro-processors, and consultancy services to assist agro-businesses on increasing productivity and efficiency). Site-specific impacts and mitigation measures will be duly addressed through site-specific environmental due diligence documents (Environmental and Social Management Plans - ESMPs) to be prepared by the Client once the locations of new construction/new facilities and premises to be refurbished are known. The preparation and disclosure of site-specific ESMPs shall be duly reflected in the Environmental and Social Commitment Plan (ESCP) to be prepared by the Borrower and approved by the Bank prior to the project appraisal. Applicable Social Risks associated with Land Acquisition, Restrictions on Land Use and Involuntary Resettlement could be related to Component 1 in case public land could not be allocated for the collection centers to be built. Impacts related to land acquisition are negligible, if at all, because there is a sufficient choice of the parcels to ensure that the chosen sites are outside inhabited areas. Initial screening will be conducted as provided in the RPF so that the land used for the center does not cause physical or economic displacement. In the unlikely event that some economic or physical displacement occurs, such impacts will be addressed through RPF. Proposed mitigation measures related land acquisition are highlighted under ESS 5. There is a high probability that small full-time farmers are excluded, and this would be primary producers who are small, up to 1 ha scattered land plot, and mostly rely by family labor and receive small seasonal support. This segment could have maximum positive impacts from the new services and establishment of the collection centers near to their operation. Client would undertake assessment how to reach small farmers as well, this will be described and elaborated in a saection of the Stakeholder Engagement Plan, so they can benefit from the establishment of the centers and new services. Measure will be defined so the outreach accesses as much as possible small farmers as well. Labor Issues - The project at this stage is unable to estimate the number of workers or labor required. However, the footprint is expected to be small, one to maximum three collection centers will be built which will require lands of about 1000 to 3000 thousand Jun 09, 2019 Page 6 of 12 The World Bank Agriculture Modernization Project (P168014) square meters each. Majority of contract workers (skilled and unskilled) is expected to be hired from the local communities close to the project sites. Thus, it is not expected that there will be labor influx related issues. One issue might be hiring and treatment of seasonal workers by the beneficiaries. The ESA will further examine working conditions of seasonal agriculture workers in general and will implement measures to address potential gaps with ESS2. Community Health and Safety - Project’s civil works will mainly be undertaken in limited areas. Given that the works will be in greenfield there will be no interference of daily activities and the works. No heavy machinery and construction related traffic is expected. GRM- The project design will incorporate a comprehensive project-wide GRM which will enable a broad range of stakeholders to channel concerns, questions, and complaints to the PIU (and where necessary to other actors at the local level). Particular attention will be paid to ensure informal workers and small producers who may face risks of exclusion have avenues to voice concerns. Areas where “Use of Borrower Framework” is being considered: Given the weak capacity of the project implementing agency and national environmental authorities to handle project related environmental and social aspects, and considering existing deficiencies in the legislation framework related to the integration of social aspects into the environmental due diligence, the Borrower’s framework will not be used for the project as a whole, nor for any of its parts. ESS10 Stakeholder Engagement and Information Disclosure Stakeholder engagement is key and critical to the success and sustainability of the project development objectives. In consultation with the Bank team, the counterpart agency will prepare and implement an inclusive Stakeholder Engagement Plan (SEP) proportionate to the nature and scale of the project and in order to address risks and impacts Public Disclosure identified through consultative processes to be carried out during preparation. For the component one the direct stakeholders for the project will be food processors and direct agriculture producers, which include cooperatives and individual farmers, but also those farmers organized but not associated in a cooperatives with the producers. Other Interested Party includes public sector agencies supporting small and medium enterprises, the association of small and medium enterprises as well as unemployed who would be interested in growth of the sector which may generate new job opportunities. Stakeholders for the component two are however more general and include all actors in the agriculture sector. The Stakeholder Engagement Plan will have separate section on how to identify, outreach and seek feedback from the vulernarble relevant for this proejct. These would be very small full time farmers that are left and unorganzied. The sectiosn of the SEP will provide solution how this segement of the beneficiaries will reach benefits from the project. Both from the supply side the public sector - respective agencies, departments - as well as from the demand side the primary producers, processors as well as others such as suppliers of the inputs or traders. MAFWE (Ministry of Agriculture Forestry and Water Economy) has a good track record in involving stakeholders to discuss policies and measures given that MAFWE uses substantial EU TA and direct funds for which the stakeholder engagement is a prerequisite. Specific attention will be given to strategies and mechanisms to ensure that small and vulnerable farmers such as female headed households are given the adequate knowledge and platforms so they can have equal bargaining power and access to the use of the collection centers and that these groups are targeted in the capacity building and knowledge sharing activities of the project. Draft SEP will be prepared and disclosed as early as possible and prior to Appraisal. With the start of the preparation of the ESMF, the client will seek stakeholder feedback and opportunities for proposed future engagement, ensuring that all consultations are inclusive and accessible (both in format and location) and through channels that are suitable in the local context. If major changes are made to the SEP during project preparation or implementation, a revised SEP should be publicly disclosed. The SEP will describe processes of meaningful consultations with all stakeholders throughout the project life cycle paying Jun 09, 2019 Page 7 of 12 The World Bank Agriculture Modernization Project (P168014) special attention to the inclusion of small farmers. The project will provide stakeholders with timely, relevant, understandable and accessible information, and consult with them in a culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination and intimidation. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions For both components, Project Implementation Unit will consist of seconded staff from entity ministries and agencies (classified as government civil servants under ESS2, para 8) and consultants (direct workers). Employers of project supported entrepreneurship intermediaries and SMEs (employees of project beneficiaries) as well as those working for the contractors of the civil works, will be considered as contracted workers under ESS2. There might be risks related to the management of employees of project beneficiaries (i.e. small producers and agro-processors), i.e. how they treat full time employees and seasonal workers. Formalizing seasonal employment has been challenge until now in Macedonia. This aspects will be further assessed during preparation and appropriate measures will be undertaken All requirement of ESS2 such as preparation of contractor’s labor management procedures (C-LMP), development of GRM for direct and contracted workers, will apply to direct and contracted workers.(including the employees of the project beneficiaries, this is how this risk is planned to be addressed) For government civil servants, the Borrower will screen for sever OHS issues, but they will remain otherwise subject to the terms and conditions of their existing public-sector employment or agreement. The OHS aspects will be duly considered by the project ESMF and incorporated into all site-specific ESMPs for both new construction and refurbishment. In Macedonia, labor related Public Disclosure practices are governed by the specific Labor Codes (Law on Labor Relations, Law on Safety at Work, Law on Construction, Rulebook on minimal requirements for safety and health at work for temporary and mobile construction sites, Rulebook on minimal requirements for workers health and safety at workplace) which includes provisions on non-discrimination, minimum employment age, protection of workers, freedom of association and dispute resolution and work environment standards. For all workers (direct and contracted) but civil servants, the Borrower will prepare Labor Management Procedures in line with ESS2 and specific labor related GRM, which will be part of the bidding documents as section of ESMP. The project at this stage is unable to estimate the number of workers or labor required. However, the footprint is expected to be small and majority of the labor (skilled and unskilled) is expected to be hired from the local communities close to the project. No major labor influx is expected ESS3 Resource Efficiency and Pollution Prevention and Management This standard is relevant to project Components 1 and 2 and activities (TA) that focus on agricultural knowledge support related to agro-production and agro-processing technologies and to the environmentally sustainable irrigation practices, to be provided by the one-stop advisory shop. With respect to civil works under Components 1 and 2, the project will involve the use of construction materials such as sand and gravel, and water and energy resources. The project ESMF will underline the main principles of resource efficiency and pollution prevention, and respective ESMPs will provide for specific requirements (and specify good practices) to contractors to introduce the efficient use of resources in the construction and renovation processes such as optimized use of electricity, water re- use, etc. Environmental damage due to improper management of construction waste, domestic waste and excess materials may cause expansion of project's environmental footprint. These risks and required types of mitigation Jun 09, 2019 Page 8 of 12 The World Bank Agriculture Modernization Project (P168014) measures will be determined by respective ESMPs. The ESMP on the constrcution of ABP processign and disposal facilities will address the impacts related to the operation of the plant and disposal facilities, which may cause generation of odor, and requires proper management and disposal of organic wastes and waste water to be generated by the technological process. The implementing agency shall commit to require from the selected works contractors to develop a detailed Waste Management Plan (WMP) prior to start of the civil works, and enforce its implementation by contractors. WMPs shall address specific information on estimated volumes of various types of wastes, arrangements for their temporary storage and final placement, and clearances/permits for waste disposal obtained from relevant national authorities. Specific Waset Management Plan shall be developed by the desingers for the operaiton of the ABP processing and disposal facilities. Specific arrangements for re-use or recycling of particular types of wastes as well as agreement on hand-over to secondary users shall be included where feasible. The engineering designs of the collection centers and ABP facilities shall incorporate water/energy efficiency features to minimize the use of resources during their operation. Technical assistance to be provided under Component 1 will also cover the aspects of resource efficiency, environmentally sustainable use of pesticides and introduction of IPM in agricultural production, and pollution prevention in agro-businesses. ESS4 Community Health and Safety Adverse impacts on the health and safety of surrounding communities are anticipated during the construction and refurbishment works, due to the generation of wastes, noise, dust, use of heavy construction machinery, and transportation of construction materials. The operation of the ABP facilities to be constructed under the project may also be associated with adverse impacts, such as odor and generation of organic wastes and waste waters. The types Public Disclosure of communities and PAPs, the types and magnitude of potential negative impacts as well as adequate measures to mitigate the anticipated impacts will be highlighted in the ESMF and defined by site-specific ESMPs. Those ESMPs, once prepared will be duly disclosed and discussed with communities likely to be affected, to raise awareness of the project activities, educate people on potential and precautionary measures to be taken by contractors, including site safety and access restrictions. The project’s civil works will mainly be undertaken in limited areas which will not be in residential areas. Engineering design of the centers and ABP facilities will incorporate measures to mitigate the impacts of odor, and to safely manage wastes generated during their operation. The project design will incorporate a comprehensive project-wide GRM which will enable a broad range of stakeholders to channel concerns, questions, and complaints to the PIU (and where necessary to other actors at the local level). Also, labor influx is not expected because most of the labor will come from the local areas, however, it will be further ascertained during preparation. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement The project through Component 1 will finance construction of the collection centers, and through Component 2 construciton of ABP processgin and disposal facilities. Once the regions will be selected if there is no available public land in appropriate locations than the center will be built in the private land and thus there will be a need for land acquisition, though highly unlikely. The project will exclude building the collection centers if potential land acquisition will cause resettlement or livelihood impacts. In rare cases if there is no publicly available land than the centers will be built in a private assets that are not used. The screening will be defined in the social section of the ESMF. Once sub-projects are defined, and necessary information becomes available, the project will prepare site specific Resettlement Action Plans to manage land acquisition in situation where no public land is available. Jun 09, 2019 Page 9 of 12 The World Bank Agriculture Modernization Project (P168014) ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources This standard is relevant to project Components 1 and 2, with respect to construction and renovation works, and to the technical assistance to be provided to agro-producers and ago-processors. The project area is the entire country, which includes several protected areas, sites of high ecological value, and natural water bodies (rivers and lakes). In order to ensure that project activities will not cause adverse impacts on biodiversity and living natural resources, the project ESMF will provide for a set of environmental and social screening criteria which will be applied to sub-projects (construction collection centers and ABP processing and disposal facilities, and office premises refurbishment) in order to ensure that any risks of impacting biodiversity and natural resources are avoided or minimized. Respective mitigation hierarchy will be applied through the development of site-specific ESMPs. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities This ESS is not relevant because no indigenous people are known to reside in Macedonia ESS8 Cultural Heritage The ESMF will describe in detail chance find procedures and institutional responsibilities, and will provide an overview of major cultural heritage objects country-wide. Site-specific ESMPs will consider the potential impacts in detail, which would depend on the sites and the fact whether any given site is characterized by any tangible or intangible cultural heritage. If any cultural heritage objects, or intangible cultural heritage, are identified during the preparation of site-specific ESMPs, respective provisions will be incorporated which would call for the civil works to Public Disclosure be conducted in such a way as to avoid any potential adverse impacts on historical monuments and other tangible and intangible cultural heritage. ESS9 Financial Intermediaries This ESS is not relevant because no financial intermediaries are party to the project implementation modality. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE A. Is a common approach being considered? Yes Financing Partners EU plans to partially finance construction of a rendering plant. If EU funding is confirmed, the Government requested the Bank to co-finance the construction of a rendering plant under the project framework. This activity has been Jun 09, 2019 Page 10 of 12 The World Bank Agriculture Modernization Project (P168014) included into the project scope under Component 2 (Sub-component 2.3.), however, remains subject to further clarification during the project preparation. Should this be confirmed, an ESF will apply. B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: - Preparation, disclosure and consultation of the ESMF before Appraisal; - Preparation and disclosure of the Stakeholder Engagement Plan before Appraisal; - Preparation and disclosure of the Resettlement Policy Framework (RPF) before Appraisal; - Labor management procedures and respective GRM as part of ESMF Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): - Preparation, disclosure and implementation of site-specific ESMPs; - Strengthening and maintaining of the institutional capacity of MAFWE - Preparation of RAPs on need basis. C. Timing Tentative target date for preparing the Appraisal Stage ESRS 01-Nov-2019 Public Disclosure IV. CONTACT POINTS World Bank Contact: Silvia Mauri Title: Sr Agricultural Spec. Telephone No: 5250+249 Email: smauri@worldbank.org Borrower/Client/Recipient Borrower: Ministry of Finance Implementing Agency(ies) Implementing Agency: Ministry of Agriculture, Forestry and Water Economy V. FOR MORE INFORMATION CONTACT Jun 09, 2019 Page 11 of 12 The World Bank Agriculture Modernization Project (P168014) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Silvia Mauri Practice Manager (ENR/Social) Paola Agostini Recommended on 05-Jun-2019 at 09:03:15 EDT Safeguards Advisor ESSA Nina Chee (SAESSA) Cleared on 09-Jun-2019 at 14:21:45 EDT Public Disclosure Jun 09, 2019 Page 12 of 12