Turkey - Second Privatization Social Support Project

Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 04/25/2005 Report No.: AC1446 1. Project Statistics Country: Turkey Project ID: P094167 Project Name: Privatization Social Support Project 2 Task Team Leader: John A. Innes Estimated Appraisal Date: April 4, 2005 Estimated Board Date: June 14, 2005 Managing Unit: ECSHD Lending Instrument: Specific Investment Loan Sector: Compulsory pension and unemployment insurance (70%);Vocational training (20%);Micro- and SME finance (10%) Theme: Social safety nets (P);Social risk mitigation (S);Education for the knowledge economy (S);Small and medium enterprise support (S) IBRD Amount (US$m.): 480.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER 120.00 120.00 Environmental Category: C - Not Required Simplified Processing Simple [] Repeater [X] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [ ] 2. Project Objectives The development objective of the proposed Second Privatization Social Support Project (PSSP2) is to support the Government's privatization program through mitigating the negative social and economic impact of the privatization of SOEs. The objective of the privatization program is to enhance the efficiency and competitiveness of the Turkish economy and thereby help in meeting the market demands of EU accession. 3. Project Description The PSSP2 will achieve this through three closely related components, namely: (i) Job Loss Compensation (JLC) to assist workers made redundant as a result of the privatization process; (ii) Labor Redeployment Services (LRS) to help affected workers find alternative employment; and (iii) Management, Monitoring and Evaluation (MME) to ensure effective implementation and assess the social impact of privatization. (a) JLC: The objective of this component is to ameliorate the temporary negative social and economic impact of job loss compensation on workers displaced during privatization of SOEs. This component will finance severance and related payments, as regulated by law, to workers displaced by job loss due to the privatization of SOEs. It is Page 2 expected that a total of 29,000 workers will receive these benefits at a total cost of Euro 420 million. Very limited local technical assistance (TA) will be used to assist in the implementation of JLC. (b) LRS: The objective of this component is to provide labor redeployment services to workers who have been displaced by the privatization of SOEs, including secondary layoffs, to assist them in rapidly re-entering the labor market. The component will finance a variety of LRS, including job counseling, placement services, labor retraining, business advisory services and temporary community employment through the Turkish Employment Agency (ISKUR), and small business incubators through the Small and Medium Industry Development Agency (KOSGEB). LRS will be delivered to workers in 21 SOEs being privatized; and to approximately 18,000 unemployed workers through sub-contractors to ISKUR and KOSGEB. Small amounts of TA, training and goods will be provided to ISKUR and KOSGEB to assist in program implementation and build up their capacity. (c) MME: The objective of this component is to monitor the social impact of the Privatization program and manage the PSSP effectively as a whole. The component will finance: (i) surveys to evaluate the effectiveness of the JLC and LRS in mitigating the social costs of labor redundancies resulting from employment and privatization on selected communities; and (ii) undertake in-depth socio-economic analyses of specific communities where privatization has taken place. The component will also finance limited TA and minor goods to: (i) coordinate project execution, and manage the resources of the project; (ii) procure all Bank-financed goods and services for implementing agencies; (iii) operate the financial management system (FMS) according to the Bank's financial management requirements; (iv) act as liaison between the technical agencies and the World Bank; (v) ensure that annual audits are completed in keeping with Bank standards, and (vi) mange the MME studies from with the technical support of the Directorate General of Research (EKA) in Treasury. 4. Project Location and salient physical characteristics relevant to the safeguard analysis National. 5. Environmental and Social Specialists on the Team Page 3 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Cultural Property (OPN 11.03) X Indigenous Peoples (OD 4.20) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X II. 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: No major issues. Best practice environmental and occupational health/safety issues will be included in training provided to beneficiaries of microbusiness incubators. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: None. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Not applicable. 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. Not applicable. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Not applicable. B. Disclosure Requirements Date * If the project triggers the Pest Management, Cultural Property and/or the Safety of Dams policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: Not applicable. Page 4 C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) BP 17.50 - Public Disclosure Have relevant safeguard policies documents been sent to the World Bank's Infoshop? 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? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr John A. Innes Environmental Specialist: Mr Ibrahim Akcayoglu Social Development Specialist Mr John A. Innes Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Ronald N. Hoffer Comments: Sector Manager: Mr Hermann A. von Gersdorff 04/20/2005 Comments: