The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 25-Mar-2019 | Report No: PIDISDSA25871 Mar 01, 2019 Page 1 of 13 The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Rwanda P164130 Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA 22-Mar-2019 30-Apr-2019 Social, Urban, Rural and Resilience Global Practice Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Finance and Ministry in Charge of Economic Planning Emergency Management, Development Bank of Rwanda Proposed Development Objective(s) To improve access to basic services and economic opportunities for refugees and host communities, and support environmental management, in the target areas in Rwanda Components Access to Basic Services and Socio-economic investments Economic Opportunity Environmental Management Project Management/M&E PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 60.00 Total Financing 60.00 of which IBRD/IDA 60.00 Financing Gap 0.00 DETAILS -NewFinEnh1 Mar 01, 2019 Page 2 of 13 The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) World Bank Group Financing International Development Association (IDA) 60.00 IDA Credit 35.00 IDA Grant 25.00 Environmental Assessment Category B-Partial Assessment Decision The review did authorize the team to appraise and negotiate B. Introduction and Context Country Context Rwanda’s economic success over the last decade is widely recognized. The country is one of Africa’s fastest growing economies with growth averaging more than 7 percent every year since 2000. The sustained growth has seen GDP per capita increase from $242 in 2000 to $748 by 2017. Poverty was reduced to 38.2 percent (from 44.9% in 2011 and 39.1% in 2014) and extreme poverty to 16.0 percent (from 24.1% in 2011 and 16.3% in 2014) in 2017.1 Nevertheless, with a GDP per capita of US$748 (2017), Rwanda remains one of the poorest countries in the world and incidence of poverty remains particularly high in rural areas. The country’s impressive progress has been built on stability, good governance and a strong drive for results. International governance rankings place Rwanda at the average of middle-income countries. The country scores particularly well on government effectiveness, control of corruption, rule of law and regulatory quality. The strength of public institutions represents an important comparative advantage over most other countries in the region. Rwanda is looking to leverage its institutional advantage by pursuing an ambitious agenda to reach upper middle-income status by 2035 and high-income status by 2050. Growth has been driven by the expansion of agriculture and rural development. The country is now focusing on second-generation economic reforms and structural transformation. To reach these goals, the government has identified a modern agriculture/food sector, increased trade and regional integration, well-managed urbanization and major investments in human capital as its main priorities. Rwanda’s Vision 2050 and National Strategy for Transformation 1 recognize the pivotal role that the private sector will need to play to achieve these goals. Sectoral and Institutional Context 1National Institute of Statistics of Rwanda (2018). Rwanda Poverty Profile Report, 2016/17. See http://www.statistics.gov.rw/publication/eicv-5-rwanda-poverty-profile-report-201617 Mar 01, 2019 Page 3 of 13 The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) While Rwanda is peaceful and stable today, forced displacement has long been a feature of the region . Instability in neighboring Democratic Republic of Congo (DRC) and Burundi has seen many people flee to Rwanda, with the country hosting 150,448 refugees and asylum seekers (47% from Burundi and 52% from DRC).2 Burundian refugees arrived in 2015, but some of the Congolese have been in the country since the 1990s (See Box 1). Additional influxes cannot be ruled out given ongoing socio-political tensions in the region. Around 90 percent of refugees in Rwanda live in the six Camps spread across the country, with the remainder living in urban locations, mostly Kigali. The camps are jointly managed by the Ministry in Charge of Emergency Management (MINEMA) and the United Nations High Commissioner for Refugees (UNHCR). Refugee demography is balanced, with 51% being female and 49% male. Women and children make up 76% of the refugee population, while 3% are elderly. Rwanda has responded progressively to the challenge of forced displacement. The World Bank, in consultation with UNHCR, has confirmed that Rwanda’s refugee protection framework is adequate. Rwanda is a signatory to the 1951 Refugee Convention. The 2014 Law Relating to Refugees complies with international law. Rwanda has signed on to the Comprehensive Refugee Response Framework (CRRF), a new global instrument built around the notion of including refugees in communities from the very beginning of displacement – that they can become self-reliant and active contributors to local economies when they gain access to education and labor markets. In March 2019 the government also completed a Strategic Plan for Refugee Inclusion 2019-2024, which describes how it will implement commitments to support refugee inclusion into national education and health systems and to promote greater economic opportunity and self-reliance. The government has also offered a pathway to naturalization for refugees, though few have taken up the offer due to either a desire to eventually return home or hopes of third country resettlement. The protracted refugee presence has had mixed impacts at the local level. On one hand, the refugee population can be a burden on a country in which 56 percent of people still live below the international poverty line. On the other, refugees bring skills and potential to contribute to Rwanda’s development goals. The establishment of camps has affected food availability and strained basic services in the districts hosting refugees. Some local school populations have increased by more than 300 percent. Several camps have been set up in mountainous areas, leading to soil erosion and storm water run-off into agricultural land. Deforestation has also occurred as refugees gather wood and non-timber forest products for cooking fuel and other purposes. Offsetting the negative effects, refugees have contributed to the local economy in the host districts through labor and trade. The Socio-economic Inclusion of Refugees and Host Communities Project will be one of the main tools through which the government will implement its commitments in the Strategic Plan for Refugee Inclusion. Poverty in five of the six districts hosting refugees is higher than the national average. Nyamagabe (which hosts the Kigeme camp) and Gisagara (which hosts the Mugombwa camp) are the two poorest districts in the country, with poverty levels of 69 and 55 percent respectively. Host communities suffer from the same development constraints as refugees – limited employment opportunities, poor quality education and a dependence on low- income agriculture for livelihood. While relations are generally good between refugees and hosts, the project will promote continued peaceful co-existence by mitigating the negative impacts of refugee presence, by providing equitable access to project benefits to both groups and by promoting joint economic activity. 2UNHCR. Data as of 30 November 2018. See https://www.unhcr.org/rw/wp-content/uploads/sites/4/2019/01/November- 2018-Operational-Update.pdf Mar 01, 2019 Page 4 of 13 The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) C. Proposed Development Objective(s) Development Objective(s) (From PAD) To improve access to basic services and economic opportunities for refugees and host communities, and support environmental management, in the target areas in Rwanda Key Results Achievement of the PDO would be measured against the following proposed key results: 1. Beneficiaries with improved access to social and economic infrastructure and services, disaggregated by type of service and target group, including refugees and host community members (number) 2. Beneficiaries of economic opportunity activities that report an increase in income, disaggregated by gender and target group, including refugees and host community members (number) 3. Direct project beneficiaries (number), of which percent of females (percentage) 4. People provided with improved environmental conditions in refugee hosting districts (number) D. Project Description Component 1: Access to Basic Services and Socio-economic investments (US$ 39 million) This component will finance subprojects to address the strain that refugee populations place on education, health and water services. It can also support facility construction or upgrade and training for technical and vocational education. The component will also support socio-economic investments to upgrade or rehabilitate roads connecting refugees and host communities to economic opportunities and market infrastructure near the camps to promote economic activity and social integration. Component 2: Economic Opportunities (US$ 9 million) Activities under this component will contribute to refugee economic integration and economic growth in the six districts that host refugee camps by promoting entrepreneurship and employment for both host community members and refugees. The component will aim to: • Economically empower refugees and host communities, in remote and rural areas through access to finance and employment opportunities; • Stimulate private investments, sectoral development and economic development; and • Improve social cohesion by making opportunities available to refugees and host communities and encouraging joint ventures. Component 3: Environmental Management (US$ 9 million) This component will minimize the environmental impacts of the presence of refugees by supporting the: (a) rehabilitation of ravines caused by the establishment of refugee camps; and (b) construction of reservoirs to harvest stormwater to limit stormwater run-off into host communities and make water available for productive use (irrigation; fish ponds, livestock water, etc.). These activities would reduce a major source of social tension Mar 01, 2019 Page 5 of 13 The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) and economic loss between refugees and host communities and address an urgent public safety issue in the targeted camps. Component 4: Project Management/M&E (US$ 3 million) This component would strengthen the technical and administrative capacity of the government to manage the project and support the ongoing development of policy approaches to refugee inclusion. E. Implementation Institutional and Implementation Arrangements Overall responsibility for project implementation will lie with Project Coordination Unit (PCU) lodged in the Single Project Implementation Unit of the Ministry in Charge of Emergency Management (MINEMA). In line with the government’s decentralization policy, implementation of activities under component one will be led by the district governments that host refugee camps. The Development Bank of Rwanda (BRD) will implement component two. MINEMA will directly implement component 3. An inter-agency Project Steering Committee will provide strategic guidance and ensure that project activities align with national policies and standards. . F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) The project will operate in the districts that host Rwanda’s six refugee camps – Kirehe, Gatsibo, Gicumbi, Karongi, Nyamagabe and Gisagara. These districts are spread across the country from areas near the border with the Democratic Republic of Congo in the west to those adjacent to Tanzania in the east. The establishment of the camps, several which are located in remote, mountainous areas, has generated environmental impacts, including: (i) deforestation; (ii) erosion and soil run-off into agricultural lands; and (iii) depletion of water tables. The project is expected to mitigate some of these effects through drainage systems, ravine rehabilitation, reservoir construction and the improvement of water systems. The project aims to improve basic services and economic opportunities for refugees and host communities. Under the access to basic services component, the project plans public works such as the construction of schools, health centers, water systems, markets and roads. This component poses risks and has potential negative impacts to the environment. The project also has a component on environmental management where it plans to rehabilitate the natural environment around the camps. The risk of the proposed construction works to the environment is moderate. The potential impacts are confined to the implementation sites and are relatively easy to mitigate. The proposed subprojects could potentially displace some people or require land acquisition, triggering OP 4.12 � Involuntary Resettlement. The project has prepared a Resettlement Policy Framework (RPF), as subprojects are not yet clearly defined. Once subprojects are clear, the client will have to prepare subproject site-specific Resettlement Action Plans (RAPs). Where applicable, Project Affected People (PAPs) will have to be compensated before the start of any civil works. The project is intended to benefit both refugees and host communities. These PAPs and other relevant stakeholders (including local governments, civil society organizations and private sector interests) have been adequately consulted during the preparation. MINEMA has undertaken a stakeholder mapping and consultation Mar 01, 2019 Page 6 of 13 The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) exercise and prepared a stakeholder engagement plan to address identified issues during consultations and to ensure that the concerns of the PAPs and other stakeholders, including host communities, are taken into consideration during project preparation, in line with World Bank safeguards policies. G. Environmental and Social Safeguards Specialists on the Team George Bob Nkulanga, Social Specialist Emmanuel Muligirwa, Environmental Specialist SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) The project will support construction in and around the refugee camps and host communities that will potentially have an impact on the environment. The civil works will mainly constitute the construction of schools, health centers, water systems, markets, surface water reservoirs, ravine rehabilitation and rural road(s). The identified potential risks and impacts to the environment include soil compaction, dust emissions, vegetation clearing and noise. Environmental Assessment OP/BP 4.01 Yes Although the actual subproject implementation sites are yet to be determined, they constitute the districts hosting refugee camps. An Environmental and Social Management Framework (ESMF), which describes measures proposed to address the potential negative impacts, has been prepared and submitted to the Bank for review and approval. It will be disclosed before appraisal. Performance Standards for Private Sector No Activities OP/BP 4.03 The proposed construction works under the project are not envisaged to affect natural habitats. Natural Habitats OP/BP 4.04 No However, potentially negative environmental impacts have been assessed during ESMF preparation. It is not envisaged that the project will require Forests OP/BP 4.36 No clearing of forested areas or significant extraction of Mar 01, 2019 Page 7 of 13 The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) forest products to attain the development objectives. The project is not envisaged to procure pesticides or pesticide equipment or lead to substantial increase Pest Management OP 4.09 No in pesticide use. The purchase of pesticides is prohibited under the project. The construction works are expected to be undertaken in the confines of existing settlements. Preparation of the ESMF demonstrated that it is Physical Cultural Resources OP/BP 4.11 Yes unlikely that Physical Cultural Resources (PCR) will be affected. However, the ESMF provides a management plan including “Chance Finds� procedures. There are no known indigenous peoples in the Indigenous Peoples OP/BP 4.10 No project targeted areas. The policy is not triggered. District governments have advised that public land will be available for all subproject investments. However, construction works could still potentially require land acquisition. As the site-specific Involuntary Resettlement OP/BP 4.12 Yes subprojects are yet to be defined, a Resettlement Policy Framework as been prepared. Once subprojects and sites are clear, the client will have to prepare subproject site-specific Resettlement Action Plans (RAPs) where necessary. The project proposes to construct surface water reservoirs as part of an integrated ravine rehabilitation integration. The reservoirs will reduce water runoff into the host communities and will also harvest storm water for productive use (e.g., irrigation, fisheries). Safety of Dams OP/BP 4.37 Yes The standard reservoir design is eight meters, so would likely constitute a small dam under OP 4.37. Appropriate dam safety measures will be prepared upon finalizing the reservoir detailed designs. The project does not negatively affect the use and Projects on International Waterways protection of international waterways. Nor will any No OP/BP 7.50 of the investments or project financed activities be located on international waterways. None of the investments, project financed activities Projects in Disputed Areas OP/BP 7.60 No or operations will be located in disputed areas. Mar 01, 2019 Page 8 of 13 The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) 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 plans to implement works such as road upgrading; market infrastructure; construction, rehabilitation and upgrading of schools, health facilities and water supply systems; ravine rehabilitation and construction of surface water reservoirs. These activities are likely to generate negative environmental and social impacts that will require the preparation and implementation of corresponding management plans. The potential environmental risks and impacts, which are generic to construction works, include soil compaction, dust emissions, vegetation clearing and noise. It is anticipated that construction activities will be implemented through labor intensive public works, with employment to be made available to refugees and host communities. The Project Coordination Unit will ensure that sites meet minimum operational health and safety requirements. No large scale or irreversible impacts are anticipated due to the scope and nature of the project components. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The project is not anticipated to have indirect or long-term significantly adverse impacts and the project sites are not close to any protected areas. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. As the project is designed to target refugees and host communities, the project has not considered alternatives to avoid or minimize adverse impacts. However implementation will seek to minimize potential adverse environment and social impacts. 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 client has prepared the following instruments in compliance with the triggered safeguards policies: (i) Environmental and Social Management Framework (ESMF); (ii) Stakeholder Engagement Plan (SEP); and (iii) Resettlement Policy Framework (RPF). The ESMF and RPF were consulted upon and disclosed locally and in the Bank’s external website on March 25, 2019. The SEP, which is not required for project approval, will be disclosed in April 2019. Although the Ministry in charge of Emergency Management (MINEMA) Single Project Implementation Unit (SPIU) lacks experience in implementing World Bank safeguards policies, it has recruited two safeguards specialists. The safeguards team will undertake environmental and social safeguards due diligence of all the subprojects and activities financed under the project, working with district government officials where appropriate. The team will also oversee the implementation of the above instruments as well the subproject Environmental and Social Management Plans (ESMPs) and Resettlement Action Plans (RAPs). World Bank safeguards staff will provide training and mentoring to the SPIU personnel and to staff from project implementation partners, throughout project implementation. The SPIU has allocated sufficient budget to ensure safeguards-related activities are properly implemented and monitored. Rwanda Development Bank (BRD) will implement component 2 of the project. BRD has experience working with the bank and has two safeguards specialists that will support the implementation of component 2 of the project. The project will avoid involuntary land acquisition by using public land where available as the first option and where land acquisition is unavoidable, a Resettlement Action Plan will be prepared, and full compensation will be done before the start of any Mar 01, 2019 Page 9 of 13 The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) civil works The borrower will establish Grievance Redress Committees (GRC) to handle grievances that might arise during project implementation. The GRCs will be trained on how to handle grievances from the community and are expected to continue doing so through the life of the project. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders for the project include host communities and refugees, government institutions at the national and district level, non-governmental organizations, financial institutions, international and United Nations organizations and the private sector. Consultations on the project design overall, the ESMF, SEP and the RPF were held with these stakeholders in Kigali and each of the six project districts, including the targeted refugee camps. Minutes of the consultations are annexed to the ESMF and RPF. MINEMA has also prepared a Stakeholder Engagement Plan (SEP), which elaborates in detail a proposed engagement process that would continue for the duration of the project. The ESMF and RPF have been cleared by the Bank and disclosed by the client and the Bank on the following dates: Instrument Local Disclosure Date Bank Disclosure Date ESMF March 25, 2019 March 25, 2019 RPF March 25, 2019 March 25, 2019 The SEP, which is not a requirement for project approval, will be cleared and disclosed in April 2019. B. Disclosure Requirements OPS_EA_DISCLOSURE_TABLE Environmental Assessment/Audit/Management Plan/Other For category A projects, date of Date of receipt by the Bank Date of submission for disclosure distributing the Executive Summary of the EA to the Executive Directors 27-Feb-2019 22-Mar-2019 "In country" Disclosure Rwanda 25-Mar-2019 Comments The ESMF was disclosed on the World Bank external website and in-country on March 25. OPS_RA_D ISCLOSURE_T ABLE Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank Date of submission for disclosure Mar 01, 2019 Page 10 of 13 The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) 27-Feb-2019 25-Mar-2019 "In country" Disclosure Rwanda 25-Mar-2019 Comments The RPF was disclosed on the World Bank external website and in-country on March 25. C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OPS_EA_COMP_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review and approve the EA report? No Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OPS_ PCR_COM P_TA BLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? Yes OPS_IR_ COMP_TA BLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? Yes If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? No OPS_SD _COMP_ TABLE OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? No Have the TORs as well as composition for the independent Panel of Experts (POE) been reviewed and approved by the Bank? NA Mar 01, 2019 Page 11 of 13 The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) Has an Emergency Preparedness Plan (EPP) been prepared and arrangements been made for public awareness and training? NA OPS_ PDI_ COMP_TA BLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for disclosure? No Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? No All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? No CONTACT POINT World Bank Matthew Stephens Senior Social Development Specialist Borrower/Client/Recipient Ministry of Finance and Economic Planning Ronald Nkusi Director, External Finance Unit ronald.nkusi@minecofin.gov.rw Implementing Agencies Mar 01, 2019 Page 12 of 13 The World Bank Socio-economic Inclusion of Refugees & Host Communities in Rwanda Project (P164130) Ministry in Charge of Emergency Management Veneranda Ingabire Coordinator, Single Project Implementation Unit vingabire@minema.gov.rw Development Bank of Rwanda Eric Rutabana CEO e.rutabana@brd.rw FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): Matthew Stephens Approved By Safeguards Advisor: Practice Manager/Manager: Robin Mearns 25-Mar-2019 Country Director: Yasser El-Gammal 25-Mar-2019 Mar 01, 2019 Page 13 of 13