(ESRS Appraisal Stage) - Appraisal Environmental and Social Review Summary Appraisal Stage

Public Disclosure Authorized

                                        The World Bank
                                        Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)
Public Disclosure Authorized

                                              Appraisal Environmental and Social Review Summary
                                                                           Appraisal Stage
Public Disclosure Authorized

                                                                     (ESRS Appraisal Stage)
       Public Disclosure

                                                        Date Prepared/Updated: 04/05/2021 | Report No: ESRSA01395
Public Disclosure Authorized

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The World Bank
                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     BASIC INFORMATION

                     A. Basic Project Data

                     Country                       Region                           Project ID                     Parent Project ID (if any)

                     Mozambique                    AFRICA EAST                      P176157

                     Project Name                  Mozambique: Northern Crisis Recovery Project (NCRP)

                     Practice Area (Lead)          Financing Instrument             Estimated Appraisal Date       Estimated Board Date

                     Urban, Resilience and         Investment Project               3/19/2021                      4/27/2021
                     Land                          Financing

                     Borrower(s)                   Implementing Agency(ies)

                     Republic of Mozambique /      Ministry of Agriculture and
                     Ministry of Economy and       Rural Development
                     Finance                       (MADER)

                     Proposed Development Objective
Public Disclosure

                     The Project Development Objective is to improve access to basic services and economic opportunities for internally
                     displaced persons and host communities in targeted areas of Northern Mozambique

                     Financing (in USD Million)                                                                                          Amount

                      Total Project Cost                                                                                                     100.00

                     B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF
                     Policy, para. 12?

                     C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and
                     Relationship to CPF]
                     The proposed multi-sector crisis response project will support the Government of Mozambique to improve the
                     delivery of urgent basic services to the IDPs, hosting communities, and people remaining in fragile areas either
                     recently liberated or likely to fall into conflict. The project will initially prioritize the immediate recovery needs by
                     focusing on the provision of basic services and restoration of livelihoods. These interventions will ensure
                     complementarity with ongoing humanitarian efforts and strengthen Bank joint-work and coordination with traditional
                     partners such as the UN and AfDB and other emerging non-traditional partners. In addition, the project will also lay
                     down elements needed for a transition to the longer-term development of core infrastructure, while building longer-

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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     term crisis preparedness and response capacity to participating communities. With respect to job creation, the
                     project’s design includes the possibility of employing IDPs to provide education and health services, among other
                     critical services. Through the participation of the affected communities, the project will ensure that interventions are
                     aligned with their needs and establish a grassroots process for facilitating social cohesion, mitigating conflict, and
                     rebuilding state-society relations.

                     The project design will be guided by the following principles: (a) addressing immediate needs through early recovery
                     activities; (b) empower local and national authorities for leadership and oversight of the delivery of services; c)
                     engaging directly with partners on the ground and instituting direct third-party implementation arrangements; (d)
                     engaging early in complex crises to help clients in transitioning from early to medium-term recovery and resilience-
                     building activities; (e) maximizing flexibility and quick-disbursing components; and (f) investing in medium-term
                     recovery and resilience-building for the sustainability of interventions.

                     D. Environmental and Social Overview
                     D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic,
                     environmental, social]
                     The project aims at supporting the early recovery of communities affected by the conflict in Northern Mozambique by
                     providing access to basic services, strengthening livelihoods and restoring core infrastructure required for a resilient
Public Disclosure

                     Project activities of relevance to the ESF include: Internally Displaced Persons (IDPs) registration in relocation sites
                     and host communities as well as activities for building social cohesion and resilience to conflict and provision of health
                     services (Component 1); cash for work programs, provision of agriculture and fisheries inputs; provision of kits for
                     micro and small business development; and training on entrepreneurship and business management (Component 2);
                     rehabilitation and construction of water and sanitary services, education and health infrastructure and services; and
                     construction of community services and amenities (Component 3); and technical capacity for project implementation,
                     environmental and social standards, reporting, and monitoring and evaluation (Component 4).

                     Targeted communities supported by the project will focus on Mozambique’s northern provinces of Cabo Delgado,
                     Nampula, and Niassa. These provinces are among the richest in terms of natural resources, where terrestrial and
                     marine protected areas play a critical role in contributing to the resilience of communities, through the provision of
                     ecosystem services, not only as food, shelter and medicine, but also climate change mitigation such as a cyclone or
                     floods protection. Miombo is the dominant forest ecosystem in these three northern provinces, where most of
                     Mozambique’s poor reside and depend on the woodlands for their basic livelihood necessities. Despite its high
                     concentration of natural and biodiversity assets, these three provinces have recorded the highest poverty rates
                     (Niassa with 67%, Nampula with 65% and Cabo Delgado with 50%) in the country and have neither benefitted from a
                     peaceful situation in the wake of the civil war, nor from robust post-conflict economic growth. Northern Mozambique
                     faces multiple and intersecting challenges including exposure to natural hazards and climate change, historical
                     legacies of conflict and violence, widespread poverty, limited state presence and scarce delivery of basic services,
                     exposure to the illicit economy through its poorly-policed coastline and porous borders, and an escalating armed and
                     violent insurgency. The security situation in the Northern provinces of Mozambique has degraded significantly in the
                     past few years, due to armed attacks in the gas-rich province of Cabo Delgado, which have claimed about 3,000 lives

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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     and displaced nearly 500,000 people since it began in 2017. This situation multiplies by the crisis caused by Cyclones
                     Idai and Kenneth in 2019, and most recently by the COVID-19 pandemic, could further deepen poverty in a region that
                     already suffers from some of the worst socio-economic and development indicators in the country.

                     Cabo Delgado (82,625 km² and 2,320,261 inhabitants) is the northernmost province of Mozambique; bordering the
                     country of Tanzania and the provinces of Nampula and Niassa. It is most impacted by the conflict, where the largest
                     insurgencies and other illegal activities are concentrated. It is also expected to have large investments in the gas
                     sector in the next 15-20 years in the southern districts, from where many of the displaced people have moved to seek
                     shelter in the provinces of Nampula and Niassa. Former forest areas have been transformed into urban settlements,
                     making Nampula the most populous province in Mozambique (79 010 km² and 5,759 000 inhabitants). Poverty and
                     malnutrition rates are the highest in the country. Nampula has received most of the Internally Displaced Persons
                     (IDPs) from Cabo Delgado. Although exposed to extreme weather events, Northern Mozambique’s long coastline
                     teems with rich marine life and is estimated to be the livelihood source for hundreds of remote coastal communities.
                     Niassa (129,056 km2 and 1,810,794 inhabitants) is Mozambique’s least densely populated province and has the
                     largest forest surface area in the country. This province houses Mozambique’s largest protected area, the Niassa
                     National Reserve (42,000 km2) which supports Mozambique’s largest elephant population.

                     Mozambique is one of Africa’s most vulnerable countries to climate change and particularly the northern coastal
                     district are frequently exposed to a number of climate hazards – including floods and cyclones, as well as affected by
                     incremental climate change such as temperature increases and changes in rainfall, and the impacts of sea level rise.
                     Climate related hazards such as severe floods and cyclones in the central and northern region are having a cumulative
Public Disclosure

                     and devastating impact on a population and public services and infrastructures that is insufficiently prepared e.g.
                     Cyclone Idai and Kenneth in 2018.
                     D. 2. Borrower’s Institutional Capacity
                     The project will be implemented by the Ministry of Agriculture and Rural Development (MADER) which will rely on the
                     National Sustainable Development Fund (FNDS) to manage the environmental and social risks and impacts of the
                     project. FNDS will hire UNOPS to manage several project activities including E&S. FNDS is under the MADER
                     administration and has experience of implementing and supervising safeguards aspects including the current projects
                     such as Landscape -P149620, MOZFIP - P160033, MOZBIO II - P166802 and Zambezia ERP - P164524. FNDS has
                     competitively selected qualified environmental and social specialist (4 at the central level and 6 at the province level
                     including 1 in Nampula and 1 in Cabo Delgado) which are familiar with Bank guidelines and procedures on
                     environmental and social (E&S) risks management. However, FNDS has no experience in managing projects under the
                     Environmental and Social Framework (ESF) although it has 2 projects under preparation (Sustainable Rural Economy
                     Program - P174002 and Northern Mozambique Rural Resilience Project - P174635) using the ESF. As such, it would be
                     necessary to strength FNDS capacity through provision of technical assistance and training to improve the procedures
                     and processes of E&S risk supervision, particularly under the context of fragility, conflict and violence, not only within
                     the FNDS but also with the local level partners, private or public, institutions and stakeholders. The trainings will
                     include topics such as Environmental and Social Standards, occupational and community health and safety,
                     emergency preparedness and response, gender-based violence risk mitigation, preparation and implementation of
                     ESMPs and RAPs, etc. UNOPS will be responsible for preparing and implementing risk management instruments with
                     oversight from FNDS. Additionally, the project will rely on multiple implementing partners (the Ministry of Land and
                     Environment [MITA]; the Ministry of Health [MISAU]; Ministry of Education and Human Development (MINEDH), the
                     Ministry of Gender, Child and Social Action [MGCAS]; Ministry of Public Works, Housing and Water Resources

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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     [MOPHRH]; Ministry of Sea, Inland Waters and Fisheries [MIMAIP]and the National Institute of Disaster Management
                     [INGC]) with varying capacity at local and central levels.


                     A. Environmental and Social Risk Classification (ESRC)                                                              High

                     Environmental Risk Rating                                                                                           High
                     The environmental risk rating is considered 'high' mainly due to the potential adverse risks and impacts from
                     construction and operation of infrastructure for basic services.

                     Key environmental risks and impacts stemming from Component 1 are associated with transmission of communicable
                     diseases (COVID-19) that could arise through IDP’s registration and workers and public gathering for capacity building
                     workshops and trainings as well as biomedical waste generated from provisioning of health services.

                     Under Component 2, the provision of agriculture and fisheries inputs will lead to an increasing habitat loss through
                     land clearing, community work and related risks of injuries and accidents. This component will also provide kits for
                     micro and small business development, although the range of activities to be financed is not yet known, no significant
                     risks to critical and natural habitats or health and safety issues are expected. Moreover, there are occupational and
                     community health and safety risks inherent to the use of materials, equipment and tools during cash for work
                     programs or construction protection dikes, ponds and multipurpose water tanks.
Public Disclosure

                     Component 3 will finance temporary and permanent infrastructure rehabilitation or construction multi-purpose
                     boreholes, classrooms, health units, , toilets, latrine slabs, water tanks, hand-washing points, etc. Key environmental
                     risks and impacts are associated with the civil works interventions and include soil, vegetation, marine and coastal
                     habitats and fauna disturbance and degradation due to excavations and earth movements for preparation of
                     construction sites; soil and water bodies contamination through uncontrolled spillages and wastewater from
                     temporary ablutions and resettlement houses; waste generation and handling (both solid and sewage); from use of
                     fossil fuel based machinery and equipment, nuisance and road traffic safety issues to the community as well as
                     occupational health and safety concerns related with the use of construction equipment, vehicles and machinery to
                     direct, contracted and community workers.

                     Other activities under Component 2 (training on entrepreneurship and business management) and Component 4
                     (strengthening the fiduciary and environmental and social standards) are mostly technical assistance (TA) activities
                     that fall under Type 3 (capacity building activities) which have more diffuse and induced impacts, often playing out
                     over a longer term.

                     The Environmental Risk Rating also takes into account the varying capacity of the multiple implementing partners and
                     direct third-party implementation institutions to manage potential risks, particularly under the new ESF requirements.
                     FNDS the implementing agency has no prior experience in managing environmental risks and impacts under ESF,
                     although the third-party institution (UNOPS) to be contracted has experience applying the ESF in recent Bank projects
                     elsewhere but not in Mozambique.

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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     From the above, the project is considered to be High Risk because is complex with multiple areas of intervention and
                     of large scale with possibility to affect sensitive locations such as natural habitats and critical habitats. Moreover,
                     insurgent attacks are outside of project control and may have impact on supervision and monitoring and overall ES
                     performance and outcomes as the situation evolves.
                     Social Risk Rating                                                                                                      High
                     The Social risk rating of the Project is assessed as High. Project activities are expected to have positive social and
                     economic impacts such as providing access to basic services, strengthening livelihoods and restoring core
                     infrastructure required for a resilient recovery. Potential social risks are related to the following: (i) the project will
                     involve interventions that may cause land acquisition and resettlement (ii) these interventions will require man power
                     to be hired mostly locally although specialized manpower is to be recruited outside the project area which could lead
                     to labour influx with potential risk of conflict with the local community and Gender-Based Violence/Sexual
                     Exploitation risks; (iii) potential risk of elite capture and exclusion from the project benefits or of conflict if targeting
                     of program beneficiaries (cash for work etc.) is not carefully planned and consulted upon with IDPs and local host
                     communities ; (iv) Security risks due to the context of armed conflict in Cabo Delgado and (iv) health risks to workers
                     and communities from spread of COVID-19 during IDP registration, public consultations, civil works and gathering.

                     Component 3 will focus on infrastructure construction (protection dikes, ponds and water retention tanks for
                     agriculture), infrastructure rehabilitation and expansion (water supply systems and sanitation facilities), and is
                     expected to lead to some land acquisition although the extent of land that is needed for these interventions is not
                     clear at this stage. The construction of attention centers, sports sites etc is also expected to lead to land and
                     livelihood loss and, where agriculture land is provided to IDPs, possible impacts on livelihoods of host communities
Public Disclosure

                     can be expected leading to some resettlement and other livelihood impacts on local people.

                     Components 3 will use labor for construction activities. While most of the labour force is expected to be recruited
                     from local areas, the influx of labor for civil works is a risk to be considered. This will need to be managed both in
                     terms of working conditions for labor, health and safety of workers, camp management (if and when required) as well
                     as the increased risk of Sexual Exploitation and Abuse/Sexual Harassment (SEA/SH) due to labor influx.

                     Under Component 2 the provision of cash for work programs for youth and women; of agriculture and fisheries
                     inputs; and of kits for micro and small business development poses the risk of elite capture and will require
                     appropriate measures to ensure targeting of beneficiaries is undertaken in a transparent manner with clear selection
                     criteria. These activities also pose a risk of social conflict between internally displaced people and host communities
                     requiring appropriate awareness raising and continuous monitoring. Training on entrepreneurship and business
                     management under component 2 and cash for works programme also pose a risk of GBV/SEA/SH and increased risk of
                     infectious diseases such as COVID 19 requiring the use of appropriate measures to avoid and minimize such risks.

                     Although FNDS has developed some experience in E&S risk management in WB financed projects (especially in
                     Conservation areas), the capacity of the multiple implementing partners, including UNOPS, and other direct third-
                     party implementation institutions to manage potential risks needs to be assessed and improved as required. FNDS has
                     no prior experience with ESF requirements.

                     The low capacity for assessment, planning and implementing measures on social risk mitigation as well as the security
                     situation in Cabo Delgado means that the social risk is High.

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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     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:
                     While the project activities are expected to support the early recovery of communities affected by the conflict in
                     Northern Mozambique by providing access to basic services, strengthening livelihoods and restoring core
                     infrastructure required for a resilient recovery, achieving these outcomes implies a number of environmental and
                     social risks and impacts that will be identified throughout the environmental and social assessment process foreseen
                     under ESS1.

                     The main environmental risks and impacts will stem from construction, development and operation of core
                     infrastructure for basic services such water and sanitation, education, health and construction of community
                     infrastructure. These civil works are likely to create disturbance and degradation of soil, vegetation, marine and
                     coastal habitats and fauna; soil and water bodies contamination; waste generation and management; air pollution,
                     dust, noise and vibration; road traffic, community and occupational health and safety hazards. The project is also
                     expected to increase the area of land to be cleared and cultivated as direct impact of financing agricultural kits and an
                     increase of the fishing effort and possibly overfishing as a direct impact for financing fishing kits. Moreover,
                     Component 2 will also provide kits for micro and small business development which may generate minor or negligible
Public Disclosure

                     risks to critical and natural habitats or health and safety issues since a Negative List and an Environmental and Social
                     Screening Form will be used to exclude any potential and significant negative risks and impacts.

                     Major social risks consist of land acquisition and resettlement due to infrastructure construction and improvements,
                     land identification and demarcation process for IDP sites and support to agriculture, labor management issues and
                     possibly labor influx, GBV/SEA/SH risks due to construction and training activities and social marginalization and
                     conflict between IDPs and host communities. Risks related to exclusion of marginalized groups such as
                     women/women headed households, children/child headed households, persons with disabilities, etc., pose a risk to
                     the successful implementation of project activities. The prevailing security situation in Cabo Delgado heightens the
                     project’s social risk. The low capacity for ESF supervision also adds to the overall social and environmental risk.

                     To mitigate the environmental and social risks and impacts, the project will develop and implement site specific
                     Environment and Social Management Plans. Other instruments to be prepared include: Labor Management
                     Procedures, , “Chance Finds” Procedures, Emergency Response Plan, as necessary for managing risks and impacts
                     related to any civil works and security issues. Any construction and rehabilitation of infrastructure will develop and
                     implement an ESMP that will be reviewed and approved by the Bank before the start of construction. The Technical
                     Assistance (TA) provided under Components 1 and 4 will require that the Terms of Reference (ToRs) for the TA
                     outputs includes relevant requirements of the ESF and the ToRs will be reviewed by the Bank to ensure, among other
                     things that all relevant ESF aspects have been included. The risks of transmission of communicable diseases i.e.
                     COVID-19, through face-to-face meetings, trainings and workshops will be mitigated using specific contingency
                     protocols for COVID-19 prevention.

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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     Since most of the land to be required for IDP hosting sites and agriculture has already been identified, a screening
                     process will be used to establish social impacts. Where such impacts are found, appropriate compensation measures
                     will need to be in place which may include the preparation of Resettlement Action Plans (RAPs). For all infrastructure
                     works, screening will identify the need to prepare RAPs. RAPs will be implemented before any civil works are
                     initiated. Labor Management Procedures (LMPs) will be prepared by the project and appropriate plans and measures
                     implemented by Contractors in relation to labor management, labor influx and camp management where required. A
                     GBV/SEA/SH risk assessment will be conducted that will outline relevant measures that need to be implemented in
                     line with risk. Emergency Response Plan (ERP) will be prepared to ensure workers and community health and safety
                     from chemical, physical and biological hazards (fire, spillages, venomous and poison wildlife) during civil works as well
                     as from natural disasters (floods, storms, cyclones, etc.).The Project will undertake a Social Assessment (SA) to ensure
                     that information can be used to appropriately tailor assistance to the specific conditions and needs of different IDP
                     groups particularly marginalized households and people. It will also inform other instruments to ensure risks of social
                     conflict between displaced people and host communities are duly taken into consideration.

                     The security situation in Cabo Delgado will be analyzed in a Security Risk Assessment (SRA) and a Security
                     Management Plan may be prepared subject to confirmation through the SRA. This Assessment and Plan will present
                     means for delivery of activities in the context of the evolving security situation. The SRA and SMP will be part of a
                     standalone document to be prepared during project implementation as the project will not work in conflict-affected

                     Other contextual risks to the project are related to climate change impacts and vulnerability that the northern
Public Disclosure

                     provinces face frequently, particularly the coastal districts which are high flood and cyclone risk zones. As such the
                     Borrower will conduct a Risk Hazard Assessment (RHA). The RHA will be guide the design and implement an
                     Emergency Response Plan (ERP).

                     There are risks of increasing expectations among IDPs and the eventual increase in the number of people arriving in
                     the temporary and relocation sites but this is beyond the control of the project. However, through the upcoming
                     strategy being developed by the GoM and the Social Assessment planned under the project, a better understanding
                     of scalability of interventions and impacts on host communities can be provided. These should inform the project in
                     coordinating a response to the situation with other implementing partners and developing outreach and
                     communication mechanisms to ensure that influx is managed across of other refugee hosting sites.

                     Moreover, at this stage it is not expected that project interventions will require complementarity with ongoing
                     humanitarian efforts from traditional partners such as the UN and AfDB and other emerging non-traditional partners,
                     however in case this situation arise during implementation an Environmental and Social screening will determine if
                     these proposed subprojects and activities can be considered Additional Facilities and the ESF standards will apply as
                     such the project will prepare appropriate instruments for its implementation.

                     In reviewing for possible cumulative impacts, although is difficult to compile a comprehensive list of existing and
                     planned developments in the project area at this stage as this crisis situation unfolds, it was noted that there are
                     other World Bank planned operations (Northern Mozambique Rural Resilience Project - P174617; Human Capital and
                     Preventing Conflict Escalation in Mozambique - P175298; Urban Upgrading in the North of Mozambique - P175266;
                     and Sustainable Rural Economy Program - P174002) that have the potential of cumulatively incrementing some

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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     negative environmental impacts such as area of vegetation being cleared, exposure to dust emissions, noise and
                     vibration, community health and safety issues, etc., in the Northern Region. As such an Regional Environmental and
                     Social Impacts Assessment (RESIA) will be conducted during project implementation to the determine the collective
                     risks and impacts significance of activities taking place. The RESIA will most likely be prepared jointly by all WB
                     projects listed above and working in the Northern Mozambique. Once the Assessment is completed the Bank and the
                     Borrower will agree on action plan to implement its findings and recommendations, including updating any existing
                     E&S instruments.

                     The project will hire service provider to provide independent review of project implementation and verification of
                     project results, including adherence to all aspects of the Project Operations Manual and the ESCP, SEP and all ESHS

                     The project Environmental and Social Commitment Plan (ESCP) and Stakeholder Engagement Plan (SEP) include the
                     material measures and actions required for the project to meet the ESSs over a specified timeframe and
                     commitments to undertake the required assessments and production of the necessary instruments for the Project.
                     Mitigation measures for site-specific impacts will be managed through the implementation of required
                     environmental and social management instruments to be prepared. Relevant capacity building measures have been
                     included in the ESCP such as an assessment report and capacity building action plan that will be prepared and
                     approved within 60 days of Project Effectiveness and implemented throughout Project implementation.

                     In conclusion, the following instruments will be prepared during project implementation: An Environment and Social
Public Disclosure

                     Management Framework document and/or equivalent Guidelines for Subproject screening and ESIA/ESMP
                     preparation; ESIA/ESMPs for specific subprojects, Resettlement Policy Framework (RPF), Chance Finds Procedures
                     (CFP), Labor Management Procedures (LMP) including a worker’s GRM, Risk Hazard Assessment (RHA), a Social
                     Assessment (SA), Emergency Response Plan (ERP), a standalone Security Risk Assessment (SRA) and possibly a
                     Security Risk Management Plan (SRMP) for Cabo Delgado, a GBV/SEA/SH Risk Assessment and Action Plan, site
                     specific Resettlement Action Plans and a Stakeholder Engagement Plan (SEP) including a GRM.

                     ESS10 Stakeholder Engagement and Information Disclosure
                     ESS 10 is assessed as relevant. The Project has a multitude of Implementing Agencies across various sectors such as
                     Ministry of Land and Environment [MITA]; the Ministry of Health [MISAU]; Ministry of Education and Human
                     Development (MINEDH),; the Ministry of Gender, Child and Social Action [MGCAS]; Ministry of Public Works, Housing
                     and Water Resources [MOPHRH]; Ministry of Sea, Inland Waters and Fisheries [MIMAIP]and the National Institute of
                     Disaster Management [INGC], international stakeholders such as UNOPS, IOM; and local stakeholders such as NGOs,
                     CBOs, IDPs, host communities and local government institutions.

                     A Stakeholder Engagement Plan (SEP) has been developed by the Project to outline a road map for consultation,
                     information-sharing, active inclusion and complaints management of stakeholders. The SEP will be further updated
                     within three months of effectiveness. It will outline means of consultation, especially in a COVID-19 situation in line
                     with World Bank guidance, including the Technical Note on “Public Consultations and Stakeholder Engagement in
                     WB-supported operations when there are constraints on conducting public meetings”, as well as and GoM’s own
                     policies. Adequate measures will be in place to ensure that consultations are inclusive and take into consideration

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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     vulnerable groups (illiterate persons, women, persons with disabilities, the elderly, etc.) A feedback system will
                     ensure that stakeholders are informed about how their views have been integrated in project implementation. The
                     SEP will be updated regularly by the PIU staff. A Grievance Management Procedure will be set up at the PIU and
                     operationalized at IDPs and host community level to ensure that any complaints are adequately addressed. The
                     Project Grievance Redress Mechanism (GRM) will be detailed as a specific section of the SEP.

                     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
                     ESS2 is relevant to this project. Construction activities under Component 3 will require the recruitment and
                     employment of direct, contracted, primary supply and community workers (under cash-for-work activities). To
                     ensure fair labour practices and health and safety of workers during the construction and operational phases of the
                     project, the borrower will take into consideration the Mozambican Labor Laws and ESS2 on labour and working

                     The borrower will develop and implement measures for the identification and mitigation of project Occupational
                     Health and Safety risks associated with the construction, rehabilitation, operation and maintenance aspects to be
                     financed under Component 3 in line with the ESS2. The borrower will be responsible for ensuring that Labour
                     Management Procedures (LMP) within the first three months of effectiveness. Labour Management Procedures will
                     detail how workers are going to be managed throughout the project cycle and will include guidelines for a worker’s
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                     GRM for all types of workers. The ESMPs will also include procedures on investigation and reporting of incidences and
                     non-conformance, emergency preparedness and response procedures and continuous training and awareness to
                     workers. A SEA/SH risk assessment will be undertaken for the Project. Based on this assessment, the Project will
                     produce a SEA/SH action plan to ensure that any risks emerging from project interventions especially in the context
                     of labor use are adequately addressed. A Code of Conduct on SEA/SH for all workers is expected to be in place.

                     The Project will need to also ensure that Labor Management Procedures (LMP) are consistent with the provisions of
                     the World Bank’s ESS2, which specifies that all contractors and sub-contractors must ensure that there is no forced or
                     child labor employed during construction.

                     The LMP will include provisions to ensure fair wages in line with local legislation and provide contractual hiring of
                     workers (both male and female), adequate payment for overwork and other measures. If a Labor Camp is established
                     for construction purposes, the facility must follow guidelines established by the Project to ensure safe and hygienic
                     living conditions. A labor GRM will need to be developed and implemented by Contractors. The LMP will guide the
                     production and implementation of any site specific plans including specification of responsibilities at sub-project
                     implementation stage by all stakeholders to address labor management requirements.

                     ESS3 Resource Efficiency and Pollution Prevention and Management
                     ESS3 is currently considered relevant to the project. Civil works and waste management services under Component 3
                     may pose risks related to soil pollution from construction debris (cement, metal, plastic, glass, etc.), water bodies

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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     contamination sewage (blackwater and graywater) from ablution blocks, land clearing and habitat conversion, air
                     pollution and GHG emission from use of machinery and equipment based on fuels engines, uncontrolled spillages of
                     fuel, oil and lubricants. The filling of an Environmental and Social Screening form will determine the need to prepare
                     an ESMPs to manage any pollution resulting from civil works. Moreover, the Component 2 will invest in agriculture
                     kits but will not involve use of pesticides and fertilizers and therefore not will not imply pest management issues..
                     The use of military personnel or police to protect projects personnel and assets are unlikely since the project will only
                     intervene in non active conflict areas. Project activities are expected to general minimal quantities GHGs, however to
                     reduce this emissions in remote areas where there is no electricity network to connect during civil works and
                     operation phase of infrastructures as well as provision of health, education and social services, the project will
                     prioritize off-grid and clean energy solutions such as solar panels instead of fossil fuel powered generators.

                     Moreover, the project will adopt WBG General Environment, Health and Safety Guidelines (EHSGs) and other
                     particular guidelines relevant for the project activities: Annual Crop Production, Perennial Crop Production,
                     Aquaculture, Mammalian Livestock Production.

                     ESS4 Community Health and Safety
                     ESS4 is considered relevant to the project as the proposed activities may pose community and safety risks to nearby
                     communities. Civil works such constructing water and sanitation systems, dykes, hospitals and schools may generate
                     traffic and road safety hazards associated with road obstructions, diversions or closures to give room to works with
Public Disclosure

                     concomitant increased traffic volume on public roads and risks of accidents. This will be exacerbated by the increased
                     flow of trucks to provide humanitarian assistance to IDPs. The civil works may also generate dust, noise, vibration,
                     waste, soil and water pollution that will have impact on surrounding communities. To address these risks, the site-
                     specific ESMPs will outline detailed management and mitigation measures for community health and safety
                     management (including Waste Management Plan, Traffic and Road Safety Management Plan) during civil works
                     rehabilitation and refurbishment of social and economic infrastructures as well as during deliveries of hazardous
                     materials, and/or storage, transportation and disposal, as needed.

                     It is not clear at this stage if the project will use community works as a social protection strategy. However, in case
                     labor is provided by the community as a contribution to the project, or for the purpose of fostering community-
                     driven development, or reason to provide a social safety net or providing targeted assistance in fragile and conflict-
                     affected situations, community workers and labor issues will be addressed through preparation of Labor
                     Management Procedures (LMP), which will also follow OHS principles. Moreover, the requirements of paragraphs 34
                     to 38 of ESS4 will apply to community workers.

                     It is not envisage that the project will significantly affect ecosystem services which in turn may result in adverse
                     health and safety risks and impacts to surrounding communities. Minor or negligible impacts are expect to affect only
                     the provisioning ecosystem services due to harvest of raw materials (including lumber, building poles, thatch grass,
                     wild fruits, fuel wood). Particularly, given the expected slight increase in demand from the new arrived IDPs in hosting
                     communities and resettlement areas, which will need to also rely on natural resources harvest to meet their
                     essentially needs. This impact is however, expected to be temporary, reversible and of low magnitude.

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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     Impacts on the health, safety and well-being of workers and project-affected communities stem from two main areas:
                     firstly from ongoing COVID-19 public health crisis.

                     The project has health risks including transmission of communicable diseases (COVID-19) during IDP’s registration in
                     relocation sites and host families and workers and public gatherings for building social cohesion, capacity building
                     workshops and training as well as beneficiaries registration and payment of direct cash transfer. This will be mitigated
                     through the use of an appropriate COVID-19 prevention protocol as well as a COVID-19 screening sheet to assess the
                     risk of exposure of communities. This sheet will be mandatory for FNDS and other local implementing partners and
                     third-party agencies, and they will be required to (i) prepare or update and implement their COVID-19 safety
                     contingency plan, and (ii) comply with social distancing policies to minimize worker illness. To ensure COVID-19 risks
                     are addressed under project implementation, training sessions will be organized for those involved. Moreover,
                     Technical Note: Public Consultations and Stakeholder Engagement in WB-supported operations when there are
                     constraints on conducting public meetings and WHO COVID-19 Guidelines will be considered to minimize and
                     mitigate COVID-19 risks.

                     Other H&S risks consist of GBV/SEA/SH that are possible both within an office environment, public works programs,
                     construction activities, during IDP’s registration in relocation sites and among host communities and during training.
                     These risks will be assessed through a GBV/SEA/SH Assessment and Action Plan. It will be implemented across all

                     ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement
Public Disclosure

                     ESS5 is considered relevant as Components 3 will finance community infrastructure construction, land demarcation,
                     infrastructure rehabilitation and expansion (water supply systems and sanitation facilities) and attention centers for
                     IDPs. These activities will require screening of impacts and the production of Resettlement Action Plans where
                     required. Additionally, land acquired for IDP sites and for agriculture land will also be screened, according to criteria
                     and procedures set out in an RPF ,for impacts and appropriate instruments including RAPs will be prepared where
                     required by the RPF. Agriculture land will be provided to IDPs and host communities will be accompanied with a
                     certificate stating temporary ownership and will also be screened in accordance with criteria set out in the RPF to
                     determine if any remedial measures are needed, including in the case of retroactive financing.

                     ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources
                     The ESS6 is considered relevant to the project at this time. As the exact locations of physical infrastructure are not
                     identified, the potential risks and impacts relevant to ESS6 are not known. It is expected that activities will mostly
                     occur within the natural and modified habitats in rural areas. Initial screening for critical habitats at project
                     geographical area has been conducted using IBAT tool and the following sites were identified: Cabo Delgado
                     province: Quirimbas National Park and World Heritage Site; Niassa province: Niassa Special Reserve, Lake Niassa
                     Partial Reserve, Njesi plateau KBA; Nampula province: Netia KBA and the following Forest Reserves: Derre, Mepalué,
                     Ribaué, Mecuburi, Matibane and Baixo Pinda. The exactly physical intervention areas, 20 relocation sites, are known
                     and none overlaps with the above critical habitats , except for Quirimbas National Park and World Heritage Site which
                     also partial covers the districts of Meluco, Ancuabe and Metuge where the project will also intervene. As such a ES

                    Apr 05, 2021                                                                                                      Page 12 of 15
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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     check-list to screen critical habitats and other important habitats and forest ecosystems will be employed in these

                     Even though some civil works (construction, rehabilitation and expansion) planned under the project will focus on or
                     next to already existing infrastructure, it will also necessitate limited physical interventions (e.g. land clearing,
                     resource use, temporary diversion of watercourses or roads to allow culverts or bridges repairs) that could negatively
                     impact the biodiversity or living natural resources. Moreover, the constructions of core infrastructure for basic
                     services such as water and sanitation systems, health centers, schools may also require vegetation clearing, opening
                     of temporary access roads or borrow, use of natural resources as construction materials, etc. In addition, there are
                     others activities susceptible to negatively affect biodiversity conservation: financing agriculture and fishing kits which
                     has the potential to lead land clearing and unintentionally convert critical habitats, biodiversity loss, overexploitation
                     of marine resources. In order to avoid these risks, the Borrower will not implement any project activities that have
                     potential to convert critical habitat and kill or harvest IUCN Red List of threatened species or national protected
                     species. As such a E&S Checklist to screen out these habitats and species will be developed. The guidelines for
                     preparation of ESIAS/ESMPS will include measures to identify, assess and mitigate any significant impacts on natural
                     habitats, including as needed the preparation and implementation of a Biodiversity Management Plan.

                     ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities
                     ESS7 is not assessed as relevant as there are no known Indigenous People/Sub Saharan African Historically
                     Underserved Traditional Local Communities in Mozambique.
Public Disclosure

                     ESS8 Cultural Heritage
                     The project will finance the rehabilitation and expansion of existing infrastructure and construction of new
                     infrastructure under Component 3. These activities may entail site clearing, and earth works that could have an
                     impact on tangible and intangible cultural heritage features located within the project footprint and underground. As
                     the locations of the project, and the likelihood of occurrence of cultural heritages features are now known; project
                     will screen and avoid potential cultural heritage sites in each sub-project and incorporate “chance find” procedures.
                     The “Chance find” procedure will form part of the sub-project specific ESMP and will address potential impacts of civil
                     works on tangible and intangible cultural heritage sites consistent with ESS8.

                     ESS9 Financial Intermediaries
                     ESS9 is not relevant to the proposed project interventions, as no financial intermediaries will be used.

                     B.3 Other Relevant Project Risks
                     The risk of social conflict between IDPs and between IDPs and host communities is relevant to the project.
                     Additionally, marginalized groups can be excluded from project benefits unless measures are in place to identify them
                     and to ensure that activities include such groups. A robust Social and Conflict Assessment will assess issues related to
                     impact of conflict on IDPs and host communities, influx dynamics, dynamics of marginalization and recommend

                    Apr 05, 2021                                                                                                      Page 13 of 15
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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     measures for including marginalized communities in project benefits. The Project instruments will be updated and
                     subsequently prepared in accordance with the recommendations of this assessment.

                     C. Legal Operational Policies that Apply

                     OP 7.50 Projects on International Waterways                                                                        No

                     OP 7.60 Projects in Disputed Areas                                                                                 No

                    B.3. Reliance on Borrower’s policy, legal and institutional framework, relevant to the Project risks and impacts

                     Is this project being prepared for use of Borrower Framework?                                                      No

                     Areas where “Use of Borrower Framework” is being considered:
                     None or part of the Borrower Framework will be used.

                     IV. CONTACT POINTS
Public Disclosure

                     World Bank
                     Contact:             Lizardo Narvaez Marulanda           Title:             Senior Disaster Risk Management

                     Telephone No:        202-458-2024                        Email:             lnarvaez@worldbank.org

                     Borrower:             Republic of Mozambique / Ministry of Economy and Finance

                     Implementing Agency(ies)
                     Implementing Agency: Ministry of Agriculture and Rural Development (MADER)

                     V. FOR MORE INFORMATION CONTACT

                    Apr 05, 2021                                                                                                  Page 14 of 15
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                               Mozambique: Northern Crisis Recovery Project (NCRP) (P176157)

                     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):               Lizardo Narvaez Marulanda

                     Practice Manager (ENR/Social)      Africa Eshogba Olojoba Cleared on 02-Apr-2021 at 16:00:42 GMT-04:00

                     Safeguards Advisor ESSA            Peter Leonard (SAESSA) Concurred on 05-Apr-2021 at 12:07:37 GMT-04:00
Public Disclosure

                    Apr 05, 2021                                                                                              Page 15 of 15
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