Uganda - Poverty Reduction Support CreditSecond Poverty Reduction Support Credit Project

Report No. 23498 Report No: I073671 <--Please check for duplicates! Integrated Safeguards Data Sheet (Initial) Date ISDS Prepared/Updated: 12/19/2001 Section I - Basic Information A. Basic Project Data Country: UGANDA Project ID: P073671 Project: Poverty Reduction Support Credit II Task Team Leader: Satu Kristiina Kahkonen Appraisal Date: January 28, 2002 IBRD Amount ($m): Bank Approval: April 23, 2002 IDA Amount ($m): 150.00 Managing Unit: AFTM2 Sector: KY - Other Economic Policy Lending Instrument: Poverty Reduction Support Credit (PRC) Status: Lending I.A.2. Project Objectives: Like PRSC1, PRSC2 will support the implementation of Uganda's poverty reduction strategy as summarized in the PRSP. The specific objective of PRSC2 is to improve public service delivery, given that poor public service performance is one of the key constraints to economic development and poverty reduction. In particular, PRSC2 will continue supporting the reform program adopted under PRSC1, and further refine and expand it to cover selected aspects of rural development. The reform program will support efforts to improve efficiency of public expenditures and public sector management with the aim to improve access to and quality of education, health, and water and sanitation services. In addition to these services that raise the quality of life of the poor, PRSC2 will expand the reform program to support the implementation of Government's Plan for the Modernization of Agriculture (PMA). The program will be expanded to support efforts to promote an enabling environment for rural development, including steps to improve the effectiveness of agricultural research and advisory services, and the promotion of rural finance, district and community roads, and sustainable resource management, with the aim to raise the income of the poor. I.A.3. Project Description: PRSC2 will support activities in the following areas: 1. Public expenditure and budgetary management: (i) align expenditures with PRSP priorities; (ii) include donor-financed projects and wage bill in the medium-term expenditure framework; (iii) reduce deviations from the budget; (iv) streamline inter-governmental fiscal transfers; (v) enhance results-orientation of sector expenditure programs; (vi) streamline and strengthen monitoring and evaluation arrangements. 2. Cross-cutting public sector reforms: (i) public service management (public sector pay reform, improve payroll management, control expansion of public administration, launch a public service reform); (ii) public procurement (update the legal and regulatory framework, reform procurement arrangements, strengthen enforcement of procurement rules and regulations, improve efficiency of National Medical Stores); (iii) financial management (update the legal and regulatory framework, improve accounting and reporting, strengthen audit structures and practices, implement regular expenditure tracking surveys); (iv) transparency (improve access to public information); (v) civil society participation (develop NGO policy and code  of conduct); (vi) detection, investigation and prosecution of corruption; (vii) legal and judicial reform (implement commercial justice reforms to enhance enforcement of commercial contracts). 3. Promoting enabling environment for rural development: (i) research and technology (improve responsiveness and impact of publicly funded agricultural research); (ii) agricultural advisory services (increase access and effectiveness of agricultural advisory services); (iii) rural finance (develop legal and regulatory framework for microfinance); (iv) land (implement the 1998 Land Act in a prioritized manner, promote access to land by women and children/orphans); (v) environment (integrate environmental sustainability concerns in government programs). 4 Improve quality of education: (i) primary education (reduce pupil-teacher ratio, pupil-textbook ratio, pupil-classroom ratio); (ii) post-primary education (develop and implement a strategy for the expansion of post-primary education). 5. Improving health care: (i) health care financing (rationalize health care financing); (ii) drug procurement and management (strengthen procurement and management of drugs and medical supplies); (iii) human resources (increase human resources for health); (iv) health infrastructure (improve health infrastructure). 6. Increase access to and reliability, affordability, and sustainability of water supply and sanitation (WSS) services: (i) rural WSS (strengthen decentralized planning, preparation, implementation, and management; improve central government's capacity to provide technical assistance to districts; utilize the local private sector for WSS delivery; develop a strategy for national hygiene promotion, sanitation, and communication); (ii) small towns WSS (introduce a new management framework); (iii) urban WSS (introduce commercial operations, improve financial sustainability). In each of the sectors included in the PRSP, sector plans are prepared by sector working groups which include government officials, donors, NGOs, and private sector representatives. I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) PRSC2 will be coordinated by the Ministry of Finance, Planning and Economic Development (MOFPED), and implemented by central and line ministries, districts, small towns, and communities across the country. B. Check Environmental Classification: B (Partial Assessment) Comments: Environmental Classification Approved by Environmental Assessment Team Based on its coverage and the nature of planned activities described above, PRSC2 is a sectoral adjustment credit. Consequently, the operational policy on environmental assessment (OP4.01) applies. While not known at this time, the actual magnitude of the potentially adverse environmental effects (associated with expanding access to education and - 2 -  health services, district road maintenance, agricultural development, WSS delivery) is expected to be modest. On this basis, the environmental category assigned to PRSC2 is B. A separate environmental assessment is not required, but the analysis will be contained in an Annex to the President's Report, as agreed at the concept review stage. In view of the updated Bank disclosure policy, the Annex will be disclosed. Pest management and resettlement issues are discussed in the Environmental Annex but no specific Pest Management Plan or Resettlement Action Plan is required, because these issues are national in scope and no specific investment requires such a plan. C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) Yes Forestry (OP/GP 4.36) No Natural Habitats (OP/BP 4.04) No Safety of Dams (OP/BP 4.37) Yes Pest Management (OP 4.09) No Involuntary Resettlement (OP/BP 4.12) No Indigenous Peoples (OD 4.20) No Cultural Property (OP 4.11) No Projects in Disputed Territories (OP/BP/GP 7.60)* No Projects in International Waterways (OP/BP/GP 7.50) No *By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D.la. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. The potential adverse environmental and social effects associated with PRSC2 are mainly related to (i) medical waste handling and disposal, (ii) district road maintenance, (iii) borehole drilling (depending on location), (iv) design and construction of WSS facilities, and (v) handling and use of agricultural inputs, in particular, pesticides. Overall, the biophysical and social impacts of these impacts are expected to be modest. II.D.lb. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. II.D.lc Describe any potential long term impacts due to anticipated future activities in the project area. II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) Treatment of alternatives is carried out through the sectoral strategy building, supported by ongoing IDA-funded investment projects in various -3 -  sectors (such as roads, agricultural research and technology, agricultural extension). Priority setting has been increasingly devolved to district and sub-county governments, and the central government is providing technical assistance to districts for this effort. Bringing environmental and social safeguards into policy making is included in capacity-building initiatives supported by IDA and other donors. Also, the PRSC2 reform program is supporting efforts to integrate sustainability concerns in government programs. II.D.3. Describe arrangement for the borrower to address safeguard issues PRSC2 is a follow-up to PRSC1 under which the borrower has adopted measures to control and mitigate any adverse environmental effects that could result from the implementation of the activities described above. An environmental monitoring plan has been put in place, and environmental and social safeguard indicators have been included in the PRSC monitoring plan. In PRSC2, further monitoring indicators have been developed for the new sectors to be covered under the operation. For example, the goal of improved productivity of resources used in agriculture is likely to include contributions from fertilizers and agricultural chemicals. A set of measures has been recommended to mitigate possible negative impacts of excessive use of agrochemicals. At the same time, capacity will be assessed generally and the work of building sectoral guidelines for good practices in environment and social safeguard management will begin in earnest. Uganda has adopted environmental impact assessment (EIA) regulations in 1998, and the National Environmental Management Agency (NEMA) has developed environmental impact assessment guidelines that cover the actual identification of biophysical and social effects, public hearing, code of conduct of EIA practitioners, environmental inspectors, and environmental easement. It has also started to establish EIA units in line ministries. Under PRSC2, the Government intends to start developing environmental guidelines across the range of public programs, in order to mainstream environmental considerations at the levels of both Ministries and various tiers of sub-national government, while the Prime Minister's Permanent Secretary's Office will continue the development of national standards for involuntary resettlement. II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Stakeholder consultation will be critical in two areas. The first one is community WSS services. DWD currently uses community workers and staff trained in social work to undertake community outreach programs. This work will continue under PRSC2. The decentralization process has devolved priority setting to political processes at local levels which have remained very open and participatory, and are deliberately designed for accountability, transparency, and increased public control. In addition, special consultative efforts will be undertaken in secondary education planning, natural resource management, and the formalization of land rights. These consultations will be an important tool aimed at building ownership for the programs and reducing inter-and intra-community resource conflicts. -4-  E. Safeguards Classification. Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. I S1. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas [XI S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable I S3. - No safeguard issues I SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan: Expected Actual Date of receipt by the Bank 1/4/2002 Date of "in-country" disclosure 1/8/2002 Date of submission to InfoShop 1/11/2002 Date of distributing the Exec. Summary of the EA to the ED (For category A projects) Resettlement Action Plan/Framework: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Indigenous Peoples Development Plan/Framework: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Pest Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Dam Safety Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Satu Kristiina Kahkonen 1/7/2002 Project Safeguards Specialists 1: Dan R. Aronson/Person/World Bank 1/7/2002 Project Safeguards Specialists 2: Rusdian Lubis/Person/World Bank 1/7/2002 Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Charlotte S. Bingham 1/7/2002 Sector Manager/Director: Frederick Kilby 1/7/2002 For a list of World Bank news releases on projects and reports, click here Lucy Njuguna -5-  M:\InfoShop - Tonya's weekly directories\January 18, 2002\I073671.txt January 15, 2002 2:10 PM - 6 -