INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Public Disclosure Copy Report No.: ISDSC1705 Date ISDS Prepared/Updated: 19-Nov-2012 I. BASIC INFORMATION A. Basic Project Data Country: Armenia Project ID: P127791 Project Name: Community Agricultural Resource Management and Competitiveness Project (P127791) Task Team Nicolas Ahouissoussi Leader: Estimated 00-undefined-0000 Estimated 20-Dec-2012 Appraisal Date: Board Date: Managing Unit: ECSAR Lending Specific Investment Loan Instrument: Focal Area: Land degradation Sector: Agricultural extension and research (100%) Theme: Climate change (75%), Other environment and natural resources management (25%) Financing (In USD Million) Financing Source Amount Public Disclosure Copy BORROWER/RECIPIENT 0.00 Global Environment Facility (GEF) 0.90 Total 0.90 Environmental B - Partial Assessment Category: Is this a No Repeater project? B. Global Environmental Objective(s) The Project Development Objective is to improve productivity and sustainability of pasture/livestock livelihood systems in selected communities. The project is thematically consistent with the Land Degradation Focal Area of GEF and will contribute towards Strategic Objective 1 - Maintain or improve flows of agro-ecosystem services to sustain livelihoods of local communities, and Strategic Objective 3 - Reduce pressures on natural resources from competing land uses in the wider landscape. C. Project Description The Project is supplemental to the ongoing IDA-financed Community Agricultural Resource Management and Competitiveness (CARMAC) project and includes three out of four components financed from IDA credit: (1) Community Pasture/Livestock Management System; (2) Strengthening Support Services; and (3) Project Management and Monitoring and Evaluation. Competitive Grants Public Disclosure Copy Program (CGP) is the component of the ongoing CARMAC project which will not be supported from the GEF grant proceeds. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project is located in the selected mountainous communities in Armenia where livestock is a main source of livelihood, and which are dependent on grassland and pasture ecosystems. The project will also support interventions at the national level. E. Borrowers Institutional Capacity for Safeguard Policies Because the project will not finance any types of interventions which are not part of the ongoing IDA-financed CARMAC project, the Environmental Management Plan (EMP) prepared and used for the active project will be applied to the GEF-funded activities as well. EMP is of a framework nature, which describes potential environmental impacts of all components of the project and provides measures for mitigating these impacts. EMP recommendations are built into the project, as provision are in place to reflect them in the designs of pasture infrastructure and other construction works, as well as into the guidelines for developing pasture management plans and operating of veterinary service centers. Ministry of Agriculture of the Republic of Armenia will be the implementing agency for the project, while its day-to-day management will be provided by PIU under this Ministry. This arrangement is similar to the one applied to the implementation of the ongoing IDA-financed CARMAC project. The PIU has extensive experience gained through the implementation of the World Bank financed RESCAD (completed) and CARMAC (ongoing) projects, including management of the environmental safeguards. PIU produces site-specific EMPs for civil works to be undertaken on the pastures as part of the pasture management plans. To date the Bank has reviewed and approved Public Disclosure Copy thirty such EMPs. Field visits to randomly selected field sites revealed no environmental damage from works on the pastures. Most of the pasture infrastructure is currently under construction. Once the new watering points for cattle are operational, communities should adopt planned restrictions on the most degraded pastures to allow for their natural regeneration. Discussions with project beneficiary communities showed their good mobilization and readiness to go for the selective use of pastures. PIU also follows environmental procedures established for the CGP. Environmental screening of applications is being carried out and for the activities classified as environmental Category B the site-specific EMPs are being developed. So far no application has required preparation of a pest management plan. Environmental performance of grant recipients is generally satisfactory, one weak point being farm waste management. This is mostly due to absence of relevant regulations, institutional set-up, and infrastructure across the country rather than the behavior of grant recipients. Nonetheless, environmental damage from CGP activities is minimal because of small scale of operations and a widespread on-farm reuse of the main types of the organic waste, while the economic benefit for communities grossly surpasses it. F. Environmental and Social Safeguards Specialists on the Team Darejan Kapanadze (ECSEN) Kosuke Anan (ECSSO) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes Short term modest negative environmental Public Disclosure Copy BP 4.01 impacts of the project interventions are mostly limited to small construction and rehabilitation works to improve access roads and other infrastructure of pastures and premises of veterinary service delivery centers. Grant- financed small agricultural and agro-processing sub-projects in rural areas may also have potential adverse impacts on the natural resources and environment due to generally low awareness of rural communities of the risks associated with waste disposal, pesticide use and other farming practices. The project is designed not only to mitigate these risks, but also to disseminate knowledge about good agricultural practices for the use beyond its scope and lifetime. Environmental screening of the proposed project revealed prevalence of the expected positive long term impacts on the biodiversity and landscapes of the alpine meadows of the country and possible modest short term negative environmental impacts confined to the activity areas. Medium risks of improper disposal of various types of organic waste from the Public Disclosure Copy beneficiary animal farms, processing entities, and veterinary service centers were also noted. Based on the above, OP/BP 4.01 Environmental Assessment is triggered and the project is classified as environmental category B. Natural Habitats OP/BP 4.04 No The project will support restoration of the degraded over-used pastures located closer to the residential areas through improving access to- and providing enabling light infrastructure for more remote pasture lands. Regeneration of the degraded pastures will be beneficial for retaining diversity of grasses and shrubs in these areas. As for a potential threat of damaging natural habitats in the remote areas by bringing cattle there while degraded lands are allowed to regenerate, as well as later on as part of rotational use of pastures - it is virtually non- existent, because any intervention into pasture use patterns supported under the project will be based on the professionally developed pasture management plans. Such plans will serve the purpose of decreasing negative environmental impacts of grazing, which is essential for Public Disclosure Copy pasture productivity and sustainability. No pasture management plan will recommend or allow a grazing pattern which threatens natural habitats. Forests OP/BP 4.36 No Pest Management OP 4.09 Yes Pest Management is also triggered by the project. Although its mainstream activities do not require procurement and use of agrochemicals, procurement of minor amounts of pesticides for fodder production is not excluded. Also, triggering of OP 4.09 will ensure that any recommendations on the pest and pesticide management issued by the project- supported providers of advisory services are based on the basics of Integrated Pest Management and are least harmful for the environment. Physical Cultural Resources OP/ No BP 4.11 Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP No The Bank Policy on Involuntary Resettlement 4.12 (OP/BP 4.12) is not triggered, as the project will not involve land acquisition or physical Public Disclosure Copy displacement. Restriction of access to natural resources will only result from community decision-making processes, deemed satisfactory to the Bank, which provides for identification of appropriate measures to mitigate any adverse effects on vulnerable members of the community. Safety of Dams OP/BP 4.37 No Projects on International No Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No 7.60 III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 14-Dec-2012 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS: 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. There no specific studies required for this project since it is linked to an ongoing project. IV. APPROVALS Public Disclosure Copy Task Team Leader: Name: Nicolas Ahouissoussi Approved By: Regional Safeguards Name: Agnes I. Kiss (RSA) Date: 19-Nov-2012 Coordinator: Sector Manager: Name: Dina Umali-Deininger (SM) Date: 25-Nov-2012 Public Disclosure Copy