Integrated Safeguards Data Sheet (Appraisal Stage) - DZ-Improved Desert Ecosystems and Climate Resilient Oases - P128082

INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA3290 Public Disclosure Copy Date ISDS Prepared/Updated: 13-Dec-2013 Date ISDS Approved/Disclosed: 14-Dec-2013 I. BASIC INFORMATION 1. Basic Project Data Country: Algeria Project ID: P128082 Project Name: DZ-Improved Desert Ecosystems and Climate Resilient Oases (P128082) Task Team Li Song Leader: Estimated 17-Jan-2014 Estimated 20-May-2014 Appraisal Date: Board Date: Managing Unit: MNSEE Lending Specific Investment Loan Instrument: GEF Focal Land degradation Area: Sector(s): Irrigation and drainage (70%), General water, sanitation and flood protection sector (30%) Theme(s): Land administration and management (60%), Environmental policies and institutions (20%), Water resource management (20%) Public Disclosure Copy Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Financing (In USD Million) Total Project Cost: 31.40 Total Bank Financing: 0.00 Financing Gap: 0.00 Financing Source Amount Borrower 24.00 Global Environment Facility (GEF) 7.40 Total 31.40 Environmental B - Partial Assessment Category: Is this a No Repeater project? 2. Global Environmental Objective(s) The Project Development Objectives are to increase adoption of climate resilient approaches to Page 1 of 10  desert ecosystem management and to improve access to alternative livelihoods in selected pilot oases. 3. Project Description Public Disclosure Copy There is a clear need to improve the livelihoods of people living in rural (desert) areas to help them utilize scarce natural resources in a more sustainable and profitable manner and to facilitate adaptation to both climate and social changes likely to put even great demands for resource use efficiency into play in the future. This is expected to result from leverage of successful pilot participatory development activities that support environmentally and socially sustainable livelihood improvement in a small number of communities that represent different types of oases in the Algerian desert. A powerful tool for the sustainable and fruitful management of the sensitive ecosystems of desert regions is called “integrated management of desert ecosystems”, or IMDE. For the purposes of this project, IMDE is defined as an integrated approach to management focusing on enabling economic opportunities specific to deserts that integrate the health and diversity of the desert biome with the vast potential for innovative livelihood opportunities that also sustain valuable repository knowledge linked to adaptive practices. It is intended that such an approach ultimately enhance desert livelihood opportunities and increase the resilience and adaptation responses of desert communities and ecosystems to projected pressures, in particular climate change impacts. IMDE provides a methodology in which all relevant government sectors work together, in a transparent and decentralized way, and in close cooperation with desert residents and stakeholders. The objective of this locally based management is to ensure that any development that occurs in this sensitive area does so in an environmentally and socially sustainable fashion. It is an approach which links development to sustainable management of ecologically sensitive and protected/ conservation areas, promotes co-management of resources between government and local stakeholders, and integrates management by government through cooperation of sectors. Because of the fragility of desert ecosystems generally, IMDE requires that all development sectors (e.g. Public Disclosure Copy agriculture, tourism, public works, local government, etc.) plan and integrate their annual work programs to be complementary and to recognize the very real possibility of unintended consequences across sectors. Presently, the existing 5 year plan of the Ministry of Agriculture, SNAT, and other sector plans follow basically traditional processes requiring little local participation in development. The process appears to have limited impacts of Government investment in the South. As such, “business as usual” will not be sufficient to deliver what is needed to address environmental, social and development issues in the South over the long run, and the current system is deeply engrained in the Government and will not be easy to change. What the project can do to leverage a change to this top-down approach to development planning is to present real examples of the potential benefits of combining environmental and social protection into the agriculture and rural development sector planning model. It can also introduce an element of local stakeholder participation in the prioritization of sector development investment in their localities. Existing government and community systems necessary to support a program of integrated desert management are in place, but there is a strong need for capacity building, particularly in support of spatial planning at the local level and on specific management methodologies. Project financing will complement existing government programs in the pilot areas, making them more environmentally and socially sustainable. The project will be supported by an US$7.4 million Page 2 of 10  grant, from the GEF and the Special Climate Change Fund. It will finance activities that complement existing Government programs that reduce environmental degradation and improve rural livelihoods in the country’s South. The Project concentrations on two broad agendas. These are: (i) capacity Public Disclosure Copy building (training, legislative support, equipment) in the integrated management of desert ecosystems (IMDE) for all concerned stakeholders (e.g. central governments, wilayas, managers, development agents, researchers, local beneficiaries, associations); and (ii) pilot investments to the IMDE in selected demonstration areas. Component 1. Strengthen capacity for integrated management of desert ecosystems (IMDE). This component will strengthen the capacity of all concerned stakeholders in desert areas for an IMDE that supports mitigation of and adaptation to climate change. Specifically, the component will: • provide training to farmers (e.g. on efficient use of water, agricultural practices resilient to climate change, etc.), local associations (e.g. on improving marketing of local handicrafts, promote eco-tourism) and selected public actors (e.g. on improving the management of water resources). • share knowledge among the project’s partner agencies and across the countries participating to the MENA-DELP regional program (Morocco, Jordan and Tunisia). This consists in organizing training workshops on IMDE for public institutions and other stakeholders at the central level (such as the Steering Committee, PCU, PMU); raising awareness events; exchange of visits among national and local partners of the project and other actors; field trips and study tours to learn about good practice experiences related to oasis management; and promoting the CNDRB as a centre of excellence for the IMDE. • organize a start-up and a final workshop as well as other events to promote GoA’s replication of successful project activities. The final workshop will include participation of stakeholders to: (i) check and validate the project’s results and success; (ii) identify the investments considered the most successful in each pilot site; (iii) support an action plan for the GoA replication of the successful investments at a larger scale. Public Disclosure Copy Expected results: Stakeholders receive training to better adapt to and mitigate climate change. Good practice experiences are shared among stakeholders. A final workshop will generate a path for expanding and replicating successful investments at a larger scale. Component 2. Piloting the IMDE approach through investments. This component will support climate-resilient and mitigation investments that improve livelihoods and conserve biodiversity. For each pilot area, it includes the activities presented below : • Tamentit and Sidi Ahmed Timmi. (i) define a framework to guide the actions funded by the GoA’s development programs in these sites; (ii) improve agricultural production (e.g. rehabilitate palm trees by introducing climate-resilient species and a suitable drainage system); (iii) support alternative income generating activities, such as black pottery and eco-tourism (including solar energy for water heating and cooking), and create/strengthen a maintenance system for solar equipments; (iv) improve water management (e.g. assess the current state of foggaras and rehabilitate them through modern maintenance tools and techniques). • Taghit-Guir. (i) develop a management plan for oasis and conduct studies on desertification and soil degradation; (ii) rehabilitate the irrigation systems for palm groves and use of treated wastewater (e.g. connecting treated wastewater with palm groves, introducing equipments based on Page 3 of 10  renewable energy); (iii) support alternative income generating activities, such as eco-tourism (including solar energy for water heating) and create/ strengthen a maintenance system for solar equipments. Public Disclosure Copy • In Guezzam. (i) define a framework to guide the actions funded by the GoA’s development programs in In Guezzam; (ii) increase agricultural and pastoral production as well as the supply of local markets (e.g. introducing pumping system based on renewable energy and equip it with maintenance system); (iii) support alternative income generating activities (e.g. leather). In addition, in Moulay Lahcen, the project will develop a conceptual program based on an integrated vision to create a small agricultural village that operates sustainably and is able to adapt to climate change. • Tinerkouk. (i) establish a system to monitor natural environment; (ii) prepare management plans for the protected area and for the CNDRB; (iii) improve agricultural production and management of water resources (e.g. rehabilitate palm groves, assess the current state of foggaras); (iv) support alternative income generating activities (e.g. eco-tourism, including solar energy for water heating; local handicrafts), and create/strengthen a maintenance system for solar equipments. Expected results: Oasis management plans are developed. Irrigation systems are rehabilitated and maintained. Water is used efficiently in agriculture (drip irrigation, treated wastewater). Renewable energy is promoted for water pumping and water heating in ecolodges. New variety of palms is introduced and palm productivity is improved. Income generating activities are promoted (eco- tourism, handicrafts). A system to monitor natural environment is established. A conceptual program for creating a small agricultural village is developed. Component 3. Project management. This component will support the establishment and management of a fully functioning project monitoring and evaluation (M&E) system within the Project Coordination Unit (PCU) at the MATE and the Project Management Unit (PMU) at the MADR. It will cover the cost of M&E, the costs of functioning and operation (equipment, material, and travel expenses for the PMU and PCU) and consulting services. Public Disclosure Copy Expected results: PCU and PMU are established and operational. Adequate management and coordination of project activities is ensured. The M&E system of the project is established and operational. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) Four sites have been selected based on consultations with MATE and MADR: Taghit (wilaya of Bechar), In Guezzam (wilaya of Tamanrasset), Tamentit and Tinerkouk (wilaya of Adrar). The selection was based on two major criteria: representativeness for different types of oases and various types of vulnerability to climate change in Algeria desert areas. They host important biodiversity (date varieties, plants with high level of endemism, endangered wildlife), traditional values (ksour, artisanal products), and an exceptional endowment with renewable energy (solar, wind). All sites suffer from hyper-arid climate, low rainfalls and high summer temperatures. However, each of them faces distinct situations and challenges, as presented below. TAMENTIT and SIDI AHMED TIMMI Current situation. Located in wilaya of Adrar, the commune covers 6,900 km2 and has 9,900 inhabitants. The main economic activity is growing palm trees. An ancient system, called foggara, Page 4 of 10  provides water for irrigation and households. This traditional system unified communities throughout centuries, thus aquiring important social and cultural values. In 2001, the oasis became a wetland of International Importance under Ramsar Convention. Currently, it covers 41 foggaras, that Public Disclosure Copy irrigate about 750 ha of palm trees. Other activities, such as sales of local products and handicrafts (e. g. black pottery) are developed on a small scale. Challenges. Maintaining foggaras requires hard physical work. This is not attractive for youth, who prefer to search for better jobs in the country’s north. As a result, many foggaras became silted and non-functional, and less water is available for irrigation. In addition, there is insufficient drainage around palm trees, which increases soil salinity. Overall, little water availability and soil salinity have led to degraded palm areas and reduced revenues to farmers; this accelerates youth migration to the country’s north. In this context, the main challenge is how to keep the foggaras operational, while diversifying farmers’ revenues. TAGHIT-GUIR Current situation. The area is situated in the center of the wilaya of Bechar. It covers about 8,000 km2 and has 6,500 inhabitants. It has unique scenic beauty due to its varied landscapes: dunes, wadis and palm trees, which form a 15 km line along the Great Western Erg. The area hosts more than 300 varieties of palm species and includes flora of high endemism and endangered animal species (Dorca gazelles, etc.). Growing palm trees and camel breeding are the main sources of livelihood, followed by other irrigated crops. The area benefits from surface water, which is used for irrigated agriculture and drinking water. Other activities – such as tourism, handicrafts – have been developed on a limited scale. Challenges. Despite the variety of palm species, the palms in the oasis are severely affected by raw sewage discharge from the nearby towns directly into the oued or seasonal river that nourishes the oasis itself. In addition, some palm trees suffer from diseases, such as Bayoudh. As a result, palm groves are increasingly degraded or dying. This substantially reduces farmers’ revenue and Public Disclosure Copy stimulates migration to the country’s north. IN GUEZZAM Current situation. The site is located on the southern tip of the wilaya of Tamanrasset, which is in the deep Sahara on the border with Niger. It covers 46,800 km2 and has 16,100 people, of which 50 percent are nomads. In recent years, the droughts have reduced the available forage on the traditional rangelands in this area; consequently, some nomads turned to hybrid agro-pastoralism to diversify their livelihoods, often with the encouragement of GoA programs. The area benefits from an important aquifer, found at 400 m depth, which can irrigate about 4,000 ha. The main economic a ctivities include livestock breeding by nomads, and small-scale irrigated agriculture (vegetables and palms) by the sedentary population. Challenges. Despite good groundwater availability, there are insufficient wells that allow water provision for irrigating agriculture and livestock breeding. Thus, a large share of population is abandoning the area, in favor of other cities. TINERKOUK Current situation. This is a protected area located in the north of wilaya of Adrar. It is situated on Page 5 of 10  high mountain dunes and covers six oases. It extends on 20,200 km2 and has 15,800 people. The area is of exceptional landscape quality, with pristine dunes, unique bodiversity (e.g. gazelles, mountain sheep), an ancient fortress and traditional houses (ksours) - which offer high potential for eco- Public Disclosure Copy tourism. Water is supplied directly from groundwater (for five oases) and foggaras (for one oasis). The main activity is growing palm groves, vegetables and fruit trees. Other activities, such as handicrafts, are developed on a limited scale (e.g. Fatis carpets). Challenges. Intense sand storms cause siltation of irrigation systems, which reduce agricultural production and biodiversity. In addition, groundwater is overexploited, leading to decline of water table. 5. Environmental and Social Safeguards Specialists Djibril Doucoure (MNSEE) Andrew Michael Losos (MNSEE) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes Planned interventions could include modifying BP 4.01 agricultural, irrigation, or drinking water systems. Some activities may include construction of works, though likely on a small scale limited to small municipal infrastructure. Natural Habitats OP/BP 4.04 Yes The project will include activities in a protected area. In addition, it is likely that endemic or sensitive species may be found in the project pilot areas. Forests OP/BP 4.36 No Pest Management OP 4.09 No Public Disclosure Copy Physical Cultural Resources OP/ Yes Project activities in proximity of ancient BP 4.11 settlements (ksours) may require action under this policy. Chance finds policy will be included in site-specific ESMPs. Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP No 4.12 Safety of Dams OP/BP 4.37 No Projects on International Yes The project will involve the small-scale taking Waterways OP/BP 7.50 of groundwater from an aquifer which straddles the Algeria-Niger border at In Guezzam. The nature of the activity involved represents only minor additions or alterations to the existing scheme and therefore does not require notification of fellow riparian states (in this case, Page 6 of 10  Niger) as provided in paragraph 7(a) of OP/BP 7.50. Projects in Disputed Areas OP/BP No Public Disclosure Copy 7.60 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: The project is expected to have significant positive environmental impacts. By taking a more integrated approach to desert ecosystem management, the project will bring mutually reinforcing improvements which will help Algeria to develop its desert regions in a more sustainable manner and reduce the pressure on stressed oasis ecosystems. The above notwithstanding, due attention has been paid to the possible negative environmental impacts of ALG-DELP. Considering the programmatic nature of the project, and the fact that all activities in all sites have not yet been precisely identified, an ESIAF has been developed. The ESIAF presents the environmental and social sensitivities of the four project sites along with the institutional and regulatory context operative in Algeria and contains an Environmental and Social Management Framework (ESMF). The ESIAF provides blueprints for the assessment of environmental and social risk at each site, and the preparation of either a site-specific Environmental Impact Notice (EIN) or simple mitigation measures for each site as required. The ESMF also provides an estimate of costs and staffing requirements for the implementation of all safeguards measures for the project. The project involves environmental interventions and therefore triggers the World Bank Environmental Assessment Policy (OP/BP 4.01) and is assigned to Category B. The policies on Natural Habitats (OP/BP 4.04) and Physical Cultural Resources (OP/BP 4.11) are also triggered because of the possibility that endemic or sensitive species or historical artifacts may be found in Public Disclosure Copy areas affected by project activities. All of these policies have been considered in preparing the ESIAF and relevant mitigating measures will be prescribed in individual Site-Specific ESMPs. The project does not finance activities involving involuntary resettlement, thus the OP/BP 4.12 on Involuntary Resettlement will not be triggered. Any activity involving lands will only be carried out on public lands where resettlement is not required or on private lands where voluntary participation of the landholder is documented in writing. In addition, this project will not create any new restrictions to livelihoods located in protected areas. However, in the desert, access to water is at least as important as access to land. Therefore, any modifications made to the foggaras or any other system providing water will need to be done in a transparent and equitable fashion that benefits all members of the community without restricting access. The safeguard policy on International Waterways (OP 7.50) is triggered for this operation. The Tin Seririne aquifer straddles the border between Algeria and Niger in the central Sahara desert. This is a small, productive aquifer, which is connected to the larger aquifer of the Irhazer- Lullemeden basin shared between Niger and Mali. In Guezzam, one of the sites of the proposed project, is located on this aquifer, and water from it will be used for activities under the project. The project’s intervention in the vicinity of the Tin Seririne aquifer represents only minor additions and alterations to the existing scheme, and the project therefore qualifies for an exception to the requirement that Algeria notify Niger under paragraph 7(a) of OP 7.50. Page 7 of 10  2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: This project is not expected to incur any indirect or long-term negative impacts due to anticipated Public Disclosure Copy future impacts in the project area. Natural resource use (e.g. groundwater, agroforestry in oases) is monitored and controlled by the relevant government ministries (Ministries of Water Resources, Agriculture and Rural Development, etc.), so any replication of project activities involving natural resources will be subject to this national control regime. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Several alternatives were considered during project preparation. These included ‘no-project’ alternative and technical alternatives. The present situation of the desert areas is extremely vulnerable to climate change, particularly considering the already limited water supply, the arid climate and the unsustainable agriculture. Under these circumstances and without a new approach to sustainable desert management, many desert areas are not in a state to provide a sustainable living to the inhabiting communities. Thus, the no-project alternative was deemed to lead to a poorer environmental outcome than the project alternative. The technical alternatives involved primarily a choice of project sites: at the beginning of project preparation, about seven pilot sites were considered. However, the focus on too many scattered sites could easily dilute the effectiveness of the project. Therefore, to increase project effectiveness and reduce costs, the team agreed to focus on only four pilot sites. 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 MATE will be the Government agency responsible for the general coordination and implementation of the project, while the responsibility for executing project activities is shared with MADR. To address all safeguards policy issues, an ESIAF - which includes an Environmental and Social Management Framework (ESMF) - has been developed for this project. It considers all environmental and social issues, participation, as well as hydrological issues for all Public Disclosure Copy project sites. In addition, the ESIAF prescribes a methodology for identifying the impacts and mitigation measures related to environmental and social impacts at each project site, and includes these in site-specific EINs or simple mitigation measures. MATE and MADR have sufficient capacity to implement the required safeguards measures for the project through their regional services. These services are accustomed to environmental assessment and to implementation of mitigating measures for projects undertaken under national law, and none of the measures prescribed under the ESMF or likely to be prescribed in site- specific EINs for this project presents a novel challenge for these ministries. The safeguards procedures outlined in the ESIAF have been designed to correspond as closely as possible to those in effect under Algerian law and therefore maximise familiarity and efficiency from the point of view of the government officials who will apply them. At the same time, they do impose additional requirements to meet all the provisions of the World Bank safeguards. Training specific to the Bank safeguards policies will be provided and any capacity gaps identified will be addressed through additional strengthening measures as required. In addition, the Environmental Assessment Evaluation Directorate of MATE will validate the environmental categorisation of each sub-project proposed for funding by authorities at the local level. This will ensure adequate quality control over the assessment of environmental risks associated with sub-projects. Page 8 of 10  5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The communities living in the pilot areas (Tinerkouk, In Guezzam, Taghit-Guir and Tamentit/Sidi Public Disclosure Copy Ahmed Timmi) are the primary beneficiaries of the project. These include primarily farmers, nomads, and associations that will benefit from works and goods for implementing concrete options to improve resilience to climate change, training, study tours and awareness campaigns. In addition, women and youth will benefit from specific project activities (e.g. strengthening associations and creating value chains for handicrafts). These beneficiaries will count about 15,600 people, of which about 30 percent women. Public consultations were conducted jointly by MADR and MATE staff accompanied by World Bank specialists with the populations of the project sites during preparation, and their findings have been used to inform the preparation of the ESIAF. Further consultations will be undertaken for the preparation of individual Site-Specific EINs. In addition, local people will be included as members of the local committees managing sub-projects, giving them a direct voice and influence in the management of project activities in their area. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 24-Oct-2013 Date of submission to InfoShop 05-Dec-2013 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure Algeria 04-Dec-2013 Comments: Website of CNDRB, an agency of MATE. Paper copies available in civil offices at project sites. Public Disclosure Copy If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? If yes, then did the Regional Environment Unit or Sector Yes [ ] No [ ] NA [ ] Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or Yes [ ] No [ ] NA [ ] degradation of critical natural habitats? Page 9 of 10  If the project would result in significant conversion or Yes [ ] No [ ] NA [ ] degradation of other (non-critical) natural habitats, does the Public Disclosure Copy project include mitigation measures acceptable to the Bank? OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural Yes [ ] No [ ] NA [ ] property? Does the credit/loan incorporate mechanisms to mitigate the Yes [ ] No [ ] NA [ ] potential adverse impacts on cultural property? OP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? Yes [ ] No [ ] NA [ ] If the project falls under one of the exceptions to the Yes [ ] No [ ] NA [ ] notification requirement, has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? Has the RVP approved such an exception? Yes [ ] No [ ] NA [ ] The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Public Disclosure Copy Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader: Name: Li Song Approved By Regional Safeguards Name: Nina Chee (RSA) Date: 14-Dec-2013 Advisor: Sector Manager: Name: Charles Joseph Cormier (SM) Date: 14-Dec-2013 Page 10 of 10