Government of Nepal Ministry of Forests and Environment Nepal Forests for Prosperity Project Environmental and Social Commitment Plan (ESCP) March 8, 2020 i ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Government of Nepal will implement the Forests for Prosperity Project (the Project), with the involvement of the following ministries/agencies/units: Ministry of Forests and Environment (MoFE); REDD Implementation Center (REDD IC); Forests for Prosperity Project Management Unit (PMU); Ministries of Industry, Tourism, Forest and Environment (MoITFE) of Provincial Governments 2 and 5 and their respective Provincial Project Management Units (PPMUs); and selected Local Governments (municipalities) within Provinces 2 and 5. The International Bank for Reconstruction and Development (The World Bank), hereinafter the “Bank�, has agreed to provide financing for the Project. 2. The Government of Nepal, through MoFE, will implement material measures and actions so that the Project is implemented in accordance with the Environmental and Social Standards (ESSs). This Environmental and Social Commitment Plan (ESCP) sets out these material measures and actions and any specific documents or plans, as well as the timing for each of these. 3. The Government of Nepal will also comply with the provisions of any other Environmental and Social (E&S) documents required under the Environmental and Social Framework and referred to in this ESCP, such as the Environmental and Social Management Framework (ESMF) (which incorporates an Indigenous Peoples Planning Framework and a Resettlement Policy Framework), the Stakeholder Engagement Plan (SEP) and the Environmental and Social Management System (ESMS) for Financial Intermediaries, and the timelines specified in those E&S documents. Framework referred to in this ESCP. This includes, for example, Environmental and Social Management Plans (ESMPs), Resettlement Action Plans (RAPs) and Indigenous Peoples Plans (IPPs) according to the timelines specified in those documents. 4. The Government of Nepal is responsible for compliance with all requirements of this ESCP even when implementation of specific measures and actions is conducted by one or more of the ministries, agencies or units referenced in 1 above. 5. Implementation of the material measures and actions set out in this ESCP will be monitored and reported to the Bank by the Government of Nepal as required in this ESCP and by the conditions of the legal agreement. The Bank will monitor and assess progress and completion of the material measures and actions of this ESCP throughout the implementation of the Project. 6. As agreed by the Bank and the Government of Nepal, this ESCP may be revised from time to time during Project implementation, to reflect adaptive management of Project changes, unforeseen circumstances or in response to an assessment of Project performance conducted under the ESCP itself. In such circumstances, the Government of Nepal will agree to the changes with the Bank and will update the ESCP to reflect such changes. Agreement on changes to the ESCP will be documented through an exchange of letters signed between the Bank and the Government of Nepal. The Government of Nepal will promptly disclose the updated ESCP. 7. Where Project changes, unforeseen circumstances, or Project performance result in changes to the risks and impacts during Project implementation, the Government of Nepal shall provide additional funds, if needed, to implement actions and measures to address such risks and impacts. These may include negative environmental and social impacts related to sustainable forest management (SFM) and private forestry, e.g. biodiversity loss, monocultures, forest degradation; waste disposal and other pollution from forest-based enterprises; health and safety impacts, e.g. work-related accidents; cultural heritage (including chance finds and requests for cultural heritage 1 conservation or similar); and gender based violence and sexual exploitation and abuse as described in the table below. 2 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILITY MONITORING AND REPORTING A REGULAR REPORTING: • Every six months from the start to PMU Regular monitoring reports on the environmental, social, health and throughout Project implementation. safety (ESHS) performance of the Project, including but not limited to the implementation of the ESCP, status of preparation and implementation of Environmental and Social documents required under the ESCP and/or ESMF, stakeholder engagement activities and functioning of the grievance mechanism(s) will be prepared and submitted to the Bank. B INCIDENTS AND ACCIDENTS: • The Bank will be notified within 72 PMU/PPMUs The Bank will be notified promptly of any incident or accident hours after learning of the incident or related to the Project which has, or is likely to have, a significant accident. adverse effect on the environment, affected communities, the • A report will be provided within a public or workers, including any accidents during harvesting and timeframe acceptable to the Bank, as other SFM-related activities, forest fires, discharge of pollutants requested. from any forest-based industries, as well as any public outcry related to Project-supported activities. Enough details regarding the incident or accident, indicating the immediate measures taken or that are planned to be taken to address the incident, and any information provided by any contractor or supervising entity, as appropriate will be provided. Subsequently, as per the Bank’s request, a report on the incident or accident proposing any measures to prevent its recurrence will be prepared and submitted. C CONTRACTORS MONTHLY REPORTS: • Bi-monthly or on request from the Contractors/PMU/PPMUs. All contractors involved in any Project activities will provide bi- PMU/PPMUs (in the case of specific PMU/PPMUs to ensure that this monthly monitoring reports to the PMU/PPMUs, which will be incidents or unexpected situations). requirement is included as a submitted to the Bank upon request. clause in the relevant contracts 3 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILITY D THIRD-PARTY MONITORING • At mid-term and during the final year PMU External or third-party ESMF monitoring (independent audit) will be of project implementation (twice conducted to ensure that all safeguards are being properly addressed during the life of the project). and that mitigation measures are being implemented where these are required. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE: • An organizational structure including MoFE, Government of Nepal An organizational structure with qualified staff and resources to Technical Staff with Environmental MoITFE support the management of environmental and social risks of the and Social Standards knowledge and Project will be established and maintained at the federal level (in relevant experience will be the PMU) and at the Provincial Level (in the two PPMUs) to ensure established within 60 days of Project full compliance with the ESMF and ESMPs, as relevant. effectiveness. Technical specialists in the PMU and PPMUs will have knowledge • The organizational structure, and experience covering all aspects of the ESSs and will have specific including Technical Staff with said responsibility for ensuring that these Standards are met. specialist knowledge and experience, will be maintained throughout Project implementation. 1.2 ENVIRONMENTAL AND SOCIAL ASSESSMENT: • The ESMF has already been prepared PMU/PPMUs Regular updates as required for the adoption and implementation of which includes the results of the ESMF of the Project, including Environmental and Social Impact Environmental and Social Assessment Assessment of Project activities and other instruments developed for the Project and procedures for such as SEP and ESMPs, will be ensured. ESIA and E&S measures of all proposed Project activities. • Implementation of the ESMF including the mitigating measures specified will continue throughout the project cycle. 4 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILITY 1.3 MANAGEMENT TOOLS AND INSTRUMENTS: • Environmental and Social Screening PPMUs and implementing units ESMF and SEP for the Project have already been developed. of activities will be done at the of participating Local proposal stage, as specified in the Governments with support Environmental and Social Screening of proposed activities in ESMF, and consistent with ESS 1 from PMU as required accordance with the ESMF prepared for the Project, and, thereafter, preparation, adoption, and implementation of site-specific which will determine the ESMP Environmental and Social Management Plans (ESMPs) as required, requirements for the activity. will be implemented. • If ESMP is required, it will be developed and disclosed before the activity is implemented. • ESMPs developed will be implemented throughout the Project implementation period. 1.4 MANAGEMENT OF CONTRACTORS: • Prior to the preparation of PPMUs and implementing units All the relevant aspects of the ESCP and ESMF prepared for the procurement documents and prior to of participating Local Project including the Labor Management Procedures will be signature of contracts. Governments with support incorporated into the environmental, social, health and safety from PMU as required • Implementation of the management specifications of the procurement documents with contractors and tools and instruments required service providers. throughout Project implementation. Environmental and social obligations will be included in all bidding • Supervision of contractors documents including the contractual agreements. It will be ensured throughout Project implementation. that the contractors comply with the environmental, social, health and safety specifications of their respective contracts. ESS 2: LABOR AND WORKING CONDITIONS 5 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILITY 2.1 LABOR MANAGEMENT PROCEDURES: • Generic LMP will be developed based PMU/PPMUs with funding from Labor Management Procedures (LMP) will be developed as outlined on existing national legislation and the Project budget in the ESMF and consistent with national legislation and ESS 2 ESS2 for the full range of activities to addressing all issues including the applicable requirements be covered by the project, within 2 regarding non-discrimination and equal opportunities. months of signing the project It will be ensured that LMP will be updated, maintained and agreement. implemented throughout the Project period and that they are • Customized LMP will be developed as available to Project workers and all sub-contractors engaged. required before specific activities commence. • LMP to be applied throughout Project implementation. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS: • The GRM will be made operational PMU/PPMUs with funding from An effective and functional grievance redress mechanism (GRM) for prior to engaging Project workers and Project resources and Project workers will be established and maintained as outlined in maintained throughout Project Contractors’ budgets the generic LMP developed for the Project, consistent with ESS 2 implementation. and national labor laws. Related labor and employment provisions • Information about the GRM is will be made easily accessible and promptly disclosed to the Project disseminated to Project workers workers. The developed GRM for workers will be included in the throughout Project implementation. Project Operation Manual (POM). 2.3 OCCUPATIONAL HEALTH AND SAFETY MEASURES: • Contractual obligations will be PMU/PPMUs with funding from Occupational Health and Safety (OHS) measures consistent with ESS maintained throughout Project Project budget 2, the Environmental, Health and Safety (EHS) Guidelines and implementation. FIs, i.e. lending institutions for relevant national legislation will be prepared and incorporated into • OHS measures will be developed FBEs/ SMEs receiving Project site-specific ESMPs. These will include emergency preparedness and before commencement of works at support response measures, Project workers’ training to enhance awareness any of the sites. of possible risks (PPE, first aid measures, including for exposure to chemicals, firefighting equipment, etc.), and protocols for local • LMPs will be applied throughout community safety. Project implementation. 6 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILITY ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND • ESMPs will be developed as required PMU/PPMUs and MANAGEMENT: before the activity is commenced. implementation units of Local Resource efficiency and pollution prevention and management Governments. • Stand-alone Pest Management Plans measures, including recycling and re-use options, water/energy (PMP) will be prepared in all cases of FIs, i.e. lending institutions for efficiency features for the Project, are discussed in the ESMF will be significant direct purchasing and FBEs/ SMEs receiving Project incorporated, wherever applicable, into the design of each activity, usage of pesticides or if significant support and implemented through the ESMPs prepared under action 1.3 pest management issues are above. anticipated; otherwise, it will be included as part of the ESMPs. Screening of activities will determine if a PMP is required. • The Pest Management Plans will be acceptable to the Bank. Once approved, the measures therein will be continued throughout the implementation period of the activity. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 TRAFFIC AND ROAD SAFETY: • ESMPs will be developed as required PMU/PPMUs and participating As required, measures and actions to asses and manage traffic and before the relevant activities are Local Governments and road safety risks during timber, fuelwood and other forest products implemented. Contractors. transportation within the Project or its activities will be developed and implemented. Assessment and management of traffic and road safety risks will be included in the ESMPs to be developed under action 1.3 above. 7 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILITY 4.2 COMMUNITY HEALTH AND SAFETY: • Requirement for ESMPs will be PMU/PPMUs and participating Measures and actions to assess and manage specific risks and determined during the screening of Local Governments and impacts to communities arising from Project activities, including, activities including for FBEs receiving Contractors. inter alia, behavior of Project workers, response to emergency Project support. FIs, i.e. lending institutions for situations, forest fires, accidents during logging and harvesting, • If required, site-specific ESMPs will be FBEs/ SMEs receiving Project leakage of gas, chemicals and other pollutants from FBEs, etc. will prepared before the relevant support be ensured by including the measures and actions specified in the activities are implemented. site-specific ESMPs that will be developed and implemented in accordance with the ESMF and consistent with the relevant national • ESMPs will be implemented laws. throughout the Project implementation. 4.3 GENDER BASED VIOLENCE AND SEXUAL EXPLOITATION AND • The Gender Action Plan will be PMU/PPMUs ABUSE: prepared within six months of project FIs, i.e. lending institutions for A detailed Gender Action Plan with activities, budget, targets and approval. FBEs/ SMEs receiving Project indicators will be developed. As one way to address gendered risks/ • If required, GBV Action Plans will be support barriers and constraints for women and vulnerable groups in Project prepared before the relevant interventions, Gender Based Violence (GBV) risks of Project activities are implemented. activities will be assessed during the screening of the activities. If the risk is Moderate, Substantial or High, stand-alone GBV Action • The GBV Action Plans will be Plans will be prepared, adopted and implemented to assess and acceptable to the Bank. Once manage the risks of GBV and sexual exploitation and abuse (SEA). approved, the measures therein will be continued throughout the implementation period of the activity. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT 8 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILITY 5.1 RESETTLEMENT PLANS: • RAPs will be prepared and disclosed PMU/PPMUs It is highly unlikely that Project activities will require [involuntary] prior to issue of bids for land acquisition or restrictions on land use leading to physical corresponding civil works. and/or economic displacement. Just the same, a Resettlement • Any RAPs prepared will be acceptable Policy Framework (RPF) has been prepared and annexed to the to the Bank prior to the ESMF for the Project, as a precautionary measure. commencement of the works. Preparation, adoption and implementation of Resettlement Action Plans (RAPs), as required in accordance with ESS 5 and consistent with the requirements of the RPF, will be implemented in a manner acceptable to the Bank in the event this should be required1. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6. BIODIVERSITY RISKS AND IMPACTS: • Measures and actions to assess and PMU/PPMUs As per ESMF requirements, screening of each activity will be carried manage risks and impacts on out and biodiversity-related risks and impacts of the activities will be biodiversity will be carried out during identified. Accordingly, the Project will implement the mitigation the preparation of site-specific hierarchy to avoid adverse impacts, minimize and restore ESMPs and within the planning and biodiversity. For any activities with the potential to have significant implementation of activities being adverse impacts on biodiversity, a stand-alone Biodiversity supported by the Project. Management Plan will be prepared. • Biodiversity Management Plans will be prepared before the relevant activities are implemented. • The Biodiversity Management Plans will be acceptable to the Bank. Once approved, the measures therein will be continued throughout the implementation period of the activity. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 1 No activities implemented through this project will restrict the use of natural resources in parks or protected areas. 9 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILITY 7.1 INDIGENOUS PEOPLES PLAN: • IPPs will be prepared and disclosed PMU/PPMUs If required, Indigenous Peoples Plans (IPPs) will be prepared, prior to the commencement of the disclosed and implemented consistent with the requirements of the designated activities. Indigenous Peoples Planning Framework (IPPF) that has been • The IPP will be implemented as prepared for the Project, consistent with ESS 7. needed in the Project. 7.2 FPIC: • As and when required. PMU/PPMUs Under particular circumstances, free, prior and informed consent (FPIC) will be obtained from indigenous peoples affected by Project activities, consistent with the requirements of the IPPF and ESS 7. ESS 8: CULTURAL HERITAGE 8.1 CHANCE FINDS: • The chance finds procedure will be Contractors/PMU/PPMUs A chance finds procedure for cultural heritage, consistent with the developed before the relevant relevant national legislation and ESS 8, will be part of all contracts or activities are implemented. activities involving any excavation, movement of earth or related • The procedure will be implemented changes in the physical environment under the Project. as needed throughout the Project cycle. 8.2 CULTURAL HERITAGE MANAGEMENT PLANS: • If required, the Plans will be prepared PMU/PPMUs If required, Cultural Heritage Management Plans will be prepared, and disclosed after the screening of adopted and implemented consistent with the requirements of ESS activities and before the 8. commencement of the works. • The Plans will be implemented throughout the Project cycle. ESS 9: FINANCIAL INTERMEDIARIES 10 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILITY 9.1 ENVIRONMENT AND SOCIAL MANAGEMENT SYSTEM: • Within 12 months of project PMU/PPMUs, FIs It will be ensured that any FI that will be involved in channelling effectiveness. financing to SMEs/FBEs, together with the wholesaler, has • Once established, the ESMSs will be established an ESMS satisfactory to the Bank and the FIs have maintained throughout Project established sufficient organizational capacity and competency to implementation. maintain the ESMS throughout the life of the Project. 9.2 SENIOR MANAGEMENT REPRESENTATIVE: • Within 12 months of project PMU/PPMUs, FIs It will be ensured that senior management representatives are effectiveness. designated from the FIs that will on-lend to SMEs/FBEs to have overall accountability for the environmental and social performance of the forest enterprise activities. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN: • The SEP will be finalized and PMU/PPMUs A draft Stakeholder Engagement Plan (SEP) has already been disclosed before Project appraisal. prepared for the Project. It will be updated, adopted and • The SEP will be implemented implemented consistent with the ESS 10. throughout the Project implementation period. 10.2 PROJECT GRIEVANCE REDRESS MECHANISM: • The GRM, forming part of the SEP, PMU/PPMUs/Local A Grievance Redress Mechanism (GRM) for the overall Project has will be acceptable to the Bank prior Government Judicial been prepared as part of the SEP. This will be improved as required, to Project appraisal. Committees adopted, and maintained as described in the SEP. • The GRM will be implemented throughout the Project implementation. CAPACITY SUPPORT (TRAINING) 11 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILITY CS1 Various capacity-building events and trainings have been proposed • Capacity building and training PMU/PPMUs in the ESMF and SEP for different target groups. All the trainings activities will be initiated within six proposed will be provided as specified in these documents. months of effectiveness of the Furthermore, it will be ensured that capacity building events and project. trainings for Indigenous People and Local Communities (IPLCs) in the Project areas will be conducted through and in coordination with the Dedicated Grant Mechanism (DGM) Steering Committee so that funds allocated for DGM are utilized efficiently for the effective capacity building of IPLCs for the implementation of the Project. The trainings will be provided for stakeholders, communities, and Project workers on different topics such as: • Stakeholder mapping and engagement • Specific aspects of environmental and social assessment • Emergency preparedness and response • Community health and safety. CS2 Capacity building events and trainings for Project staff in Federal, • Capacity building and training MoFE, MoITFEs, PMU/PPMUs Provincial and Local Governments will be provided on various topics activities will be initiated within six including: months of effectiveness of the project. • Occupational health and safety • Stakeholder mapping and engagement • Specific aspects of environmental and social assessment • Emergency preparedness and response • Community health and safety. • Content and implementation of the ESMF and ESCP • Other topics as relevant. 12