The World Bank RESTRUCTURING ISDS Integrated Dairy Productivity Improvement Project (P155412) Integrated Safeguards Data Sheet Restructuring Stage Restructuring Stage | Date ISDS Prepared/Updated: 01-Feb-2018| Report No: ISDSR24218 Regional Vice President: Cyril E Muller Country Director: Lilia Burunciuc Senior Global Practice Director: Juergen Voegele Practice Manager/Manager: Julian A. Lampietti Task Team Leader: David Tuchschneider The World Bank RESTRUCTURING ISDS Integrated Dairy Productivity Improvement Project (P155412) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. . I. BASIC INFORMATION 1. BASIC PROJECT DATA Project ID Project Name P155412 Integrated Dairy Productivity Improvement Project Task Team Leader(s) Country David Tuchschneider Kyrgyz Republic Approval Date Environmental Category 29-Nov-2016 Partial Assessment (B) Managing Unit Is this a Repeater project? GFA03 PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 5.12 Total Financing 5.12 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 5.00 IDA Credit 2.75 IDA Grant 2.25 Non-World Bank Group Financing Counterpart Funding 0.12 LOCAL: BENEFICIARIES 0.12 The World Bank RESTRUCTURING ISDS Integrated Dairy Productivity Improvement Project (P155412) 2. PROJECT INFORMATION Current Project Development Objective The Development Objective of the Project is to enhance dairy animal productivity and milk quality on beneficiary farms. . Note to Task Teams: End of system generated content, document is editable from here. 3. PROJECT DESCRIPTION Changes are proposed for all components, as described in the following. (a) Strengthening Public and Private Services in the Dairy Sector. Component 1 will be refocused on strengthening service delivery systems to support small farmers’ achievement of market quality standards for milk and creation and consolidation of farmer linkages with selected dairy processor companies. To achieve this, the sub-components will be modified as follows: (i) Sub-component 1A will be renamed “Quality Platform for the Milk Value Chain�. The focus will move from establishing a general platform for public-private sector dialogue to: designing and implementing a digital platform for milk collection and the provision of equipment for milk collection, cooling, quality testing, and data entry in milk collection points. The equipment will be provided to milk collection point operators including milk-processing companies, independent operators or farmer groups, under terms and conditions which will be described in detail in the Project Operational Manual including, inter alia, selection and eligibility criteria for beneficiaries, the types of eligible goods, the beneficiary’s obligation to adopt and use the digital milk quality platform, as well as the recipient’s compliance with sanitary requirements. Up to 130 collection points would be expected to join the platform. (i) Sub-Component 1B will be renamed “Support to the Regional Centers for Veterinary Diagnostics�. It was originally envisaged that the project would support the government’s initiative of cattle identification and registration, but this activity will be excluded since it has already been financed by GoK. Funding will be directed instead to: upgrading veterinary control and surveillance capacity, by providing resources for two newly built regional laboratories in the selected Project area (Karakol and Balykchi). Funding for this activity will encompass: (i) equipment; (ii) start-up consumables; and (iii) technical and managerial assistance for capacity building. (ii) Sub-Component 1C, procurement of high quality semen straws to ensure early breeding improvement in the Project area, will include the means to deliver the service to beneficiaries. (iii) Sub-component 1D, Establishment of up to three veterinary check points, will be eliminated as investment in physical infrastructure for veterinary check-points is deemed premature to achieve disease-free status. The World Bank RESTRUCTURING ISDS Integrated Dairy Productivity Improvement Project (P155412) (b) On-farm productivity enhancement. Component 2 envisages a large-scale training and capacity building program for small dairy farmers with the objective of delivering the basic knowledge and skillset for improved dairy cattle productivity and milk quality. While this continues to be an important and relevant project activity, this restructuring will reduce the component’s target from 12,000 to 6,000 households in order to re -allocate funds to the Revolving Fund in Component 3. The component will include (i) a contract with a local Consulting and Training Company that will develop and carry out the training, and (ii) procurement of goods and works for demonstration farms and trainees. The component will focus on the following specific outputs: (i) training delivered for 240 farmer groups (farmer field schools), and (ii) farmer technical assistance in marketing to help farmer groups establish linkages with dairy processors. Each training program will include 7 technical modules and marketing support and will be delivered over a period of 8 months. (c) Farm-level investments. Component 3 will be expanded to include a larger number of Sub-financing recipients, raising the target from 1,500 to 2,000 beneficiaries. In addition, the ceiling amount per beneficiary will be raised from US$ 1,000 to US$ 1,200. (d) Project management. Component 4 will be re-enforced to: (i) increase the project’s footprint in Issyk Kul; (ii) incorporate on-line, real-time systems for monitoring and evaluation; and (iii) link the M&E systems to the milk processors’ dairy procurement system. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. . 4. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN) Issyk-kul Oblast has been selected as the project area based on the results of a feasibility study carried out in February 2015. The study concluded that Issyk-kul Oblast is suitable for dairy value chain development considering its geographical setting (it is surrounded by mountain ranges, which is a natural barrier for restricting animal movement); the abundance of pastures; farmers’ willingness to adapt and adopt new technologies; the support of the Oblast’s Governor’s office and local authorities; the existence of a direct milk collection system from farmers; suitable level of competitiveness between buyers; good milk production growth rates; and closeness to Kazakhstan. The Oblasts covers about 80,000 households (rural population of 330,000 people) and 106,000 dairy cows (cattle population of about 220,000). 5. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM John Bryant Collier, Environmental Specialist Kristine Schwebach, Social Specialist Volodymyr Tykhyy, Environmental Specialist SAFEGUARD_TABLE 6. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation The World Bank RESTRUCTURING ISDS Integrated Dairy Productivity Improvement Project (P155412) This OP is triggered as a series of proposed project activities (upgrading of the veterinary laboratories; investments for improving the animal herd; inputs for pasture improvements; small agricultural equipment; farm infrastructure improvement including animal housing, waste management, purchasing of inputs and machinery for feed and fodder production; agro-processing and milk collection and cooling equipment; silage Environmental Assessment (OP) (BP 4.01) Yes production; etc.) might generate various environmental and social impacts. All these impacts are expected to be typical for small scale construction/rehabilitation works or for various agricultural processing activities, temporary by nature and site-specific and can be easily mitigated by applying best construction and/or agro- processing practices and relevant mitigation measures. None of the described activities has been executed prior to this restructuring. Implementing Agencies for the project are the Performance Standards for Private Sector No Ministry of Agriculture, Food Industry and Activities OP/BP 4.03 Melioration and the Ministry of Finance. Project activities will be carried out in settlements Natural Habitats (OP) (BP 4.04) No and on agricultural lands far from natural habitats. Project activities will be carried out in settlements Forests (OP) (BP 4.36) No and on agricultural lands without forests. The project will not support purchasing and use of pesticides, but within the trainings the issues of Pest Management (OP 4.09) Yes integrated pest management and safe usage of the pesticides and acaricides will be covered, thus raising public and farmers awareness. Two veterinary laboratories which will be upgraded Physical Cultural Resources (OP) (BP 4.11) No are not on the list of cultural resources. Indigenous Peoples (OP) (BP 4.10) No N/A The project will not support any sub-projects where Involuntary Resettlement (OP) (BP 4.12) No involuntary resettlement might be required Safety of Dams (OP) (BP 4.37) No N/A Projects on International Waterways (OP) No N/A (BP 7.50) Projects in Disputed Areas (OP) (BP 7.60) No N/A KEY_POLICY_TABLE II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT The World Bank RESTRUCTURING ISDS Integrated Dairy Productivity Improvement Project (P155412) A. SUMMARY OF KEY SAFEGUARD ISSUES 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. The proposed project activities (upgrading equipment for veterinary analytical laboratories; investments in improving the animal heard; purchasing of inputs and machinery for feed and fodder production; animal shelter improvement; agro-processing and milk collection and cooling equipment; etc.) might generate a series of various adverse environmental and social impacts. These impacts would be associated with noise, dust, air and water pollution, health hazards and labor safety issues, etc. All of them are expected to be typical for small scale construction/rehabilitation works or for various agricultural processing activities, temporary by nature and site specific and can be easily mitigated by applying best construction and/or agro-processing practices and relevant mitigation measures. The grants and sub-projects to be implemented under the on farm investments will also generate some direct and indirect positive economic and social impacts. Direct positive impacts will be generated by increased milk production, which would result in creation of new jobs and increased income. Indirect positive impacts will relate to overall improving of business environment, introduction of advanced agricultural diary technologies and techniques, contribution to poverty reduction and food safety. The project will not support any activities that would trigger the OP on Natural Habitats. The project will be implemented in non-afforested areas and thus no impacts on the forests' status are expected. Although the project will not support purchasing and use of pesticides, the farmers routinely use them while producing animal fodder as well as acaricides to control ticks and other ectoparasites and thus OP on Pest Management is triggered. To ensure the safe usage of chemicals the ESMF specifies the project will support TA activities in this aspect, providing public awareness and training for farmers. The project will not finance any activities that might trigger involuntary resettlement issues. Any infrastructure constructed under the project will be: (a) located on land already owned by participants and, (b) will be screened to ensure that it is free of legal encumbrance, or informal use or occupation by others who lack formal title. Due to effectiveness delays, financing of activities has not been executed prior to this restructuring.The project restructuring encompasses refocusing of project activities, reallocation of funds between components, a minor adjustment of the institutional implementation arrangements and simplification of the Results Framework. This minor restructuring does not include triggering new safeguards. The ESMF has been updated by the Client to reflect the changes in project design. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. As specified above the long term impacts are positive and associated with the improving of business environment, introduction of advanced agricultural diary technologies and techniques, contribution to poverty reduction and food safety. 3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A The World Bank RESTRUCTURING ISDS Integrated Dairy Productivity Improvement Project (P155412) 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. To address potential project impacts the client prepared an Environmental and Social Management Framework (ESMF) which is aimed at specifying the set of mitigation, monitoring, and institutional measures to be taken during the project implementation to eliminate adverse environmental and social impacts, offset or reduce them to acceptable levels. The document provides the World Bank’s and national rules and procedures for project Environmental Impacts Assessment (EIA), identify potential environmental impacts of the project (both positive and negative), and outlines rules and procedure for the sub-project environmental screening, specifying appropriate preventive actions and mitigation measures (including appropriate monitoring plan) to prevent, eliminate or minimize any anticipated adverse impacts on the environment. The ESMF also suggests a series of environmental issues to be included in the proposed project TA activities - training, preparing and disseminating guidebooks and implementing demonstration activities on the following: (a) education of veterinary specialists on managing sector environmental and social impacts; (b); sound manure management; (c) practicing silage production and measures to ensure appropriate handling and disposal of the "silage liquor"; and (d) promoting Integrated Pest Management while producing fodder and usage of acaricides in livestock production. The ESMF contains also a section on Environmental Guidelines which provides rules and procedures for EA of selected grants and sub-projects, based on which an EMP Checklist will be prepared, disclosed and consulted in the selected localities. The ESMF and EMPs provisions will form part of the design documents for the project, and will be included in contracts for proposed activities, both into specifications and bills of quantities. Respectively the Contractors will be required to include the cost of EMP requirements in their financial bids and required to comply with them while implementing the project activities. Ministry of Agriculture and Melioration and the Ministry of Finance will be the Implementing Agencies for the project. The Agribusiness Competitiveness Center (ABCC) and the Credit Line Management Unit (CLMU) of the Ministry of Finance will be responsible for implementation of the technical assistance and credit line activities, respectively. The ABCC and CLMU have prior extensive experience in implementing Bank-financed projects. Similar to the previous projects, CLMU will be responsible for project-related procurement activities, financial management as well as for sub-projects and grants Environmental Assessment. The evaluation of the EA institutional capacity has shown that although CLMU has basic capacities to perform its duties concerning EA and enforcing the ESMF provisions, there is need for additional capacity building activities, especially for the new Environmental Specialist as well as for commercial banks who will participate in the project implementation. In this regard the Project will support additional training activities to ensure the environmental requirements and the ESMF provisions would be fully implemented. 5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. ABCC and CLMU disseminated the draft summary ESMF in Russian and Kyrgyz language in its institutions and to other relevant ministries and agencies for review and comments on February 10 and 16, 2016, also posting it for wide public on the web-page of the MoF. On February 26, 2016, they conducted a public briefing and consultation on this document. Overall the meeting concluded that the draft ESMF document covered practically all potential impacts and possible mitigation measures. The draft ESMF was revised after the meeting taking into account inputs from the consultation. The final version of the EMF was disclosed in the country and in the WB Infoshop and will be used by the government agencies during the project implementation. The World Bank RESTRUCTURING ISDS Integrated Dairy Productivity Improvement Project (P155412) DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS ENV_TABLE Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission for disclosure 26-Oct-2018 06-Nov-2018 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors “In country� Disclosure Country Date of Disclosure Kyrgyz Republic 12-Nov-2018 Comments Ministry of Finance website disclosed November 7, 2018: http://minfin.kg/userfiles/ufiles/2018/kppms_rdesu_06.11.2018.pdf Russian version of ESMF disclosed November 12, 2018: http://www.agroprod.kg/index.php?aux_page=aux4 PEST_TABLE Pest Management Plan Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank Date of submission for disclosure 02-Mar-2016 08-Mar-2016 “In country� Disclosure Country Date of Disclosure Kyrgyz Republic 26-Feb-2016 Comments COMPLIANCE_TABLE C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL EA_TABLE The World Bank RESTRUCTURING ISDS Integrated Dairy Productivity Improvement Project (P155412) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review Yes and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes PM_TABLE OP 4.09 - Pest Management Does the EA adequately address the pest management issues? Yes Is a separate PMP required? No 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 NA team include a Pest Management Specialist? PDI_TABLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for Yes disclosure? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups Yes and local NGOs? ALL_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the monitoring Yes of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower Yes and the same been adequately reflected in the project legal documents? III. APPROVALS The World Bank RESTRUCTURING ISDS Integrated Dairy Productivity Improvement Project (P155412) David Tuchschneider Task Team Leader(s) Artavazd Hakobyan Approved By Practice Manager/Manager . Note to Task Teams: End of system generated content