KOSGEB DEVELOPMENT OF BUSINESSES AND ENTREPRENEURSHIP FOR SYRIANS UNDER TEMPORARY PROTECTION AND TURKISH CITIZENS PROJECT ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK APRIL 2019 ENVıRONMENTAL AND SOCıAL REVıEW PROCEDURES History The project will be implemented through KOSGEB. Its environmental category has been defined as Category B, and sub-projects will be Category B and C projects, which imply environmentally and socially low or minimum risk. Based on the planned scope of the project, the only triggered World Bank (WB) safeguard policy is OP 4.01 (Environmental Assessment). Since the investments under the project cannot be defined until the project is started to be implemented, an environmental and social management framework (ESMF) has been prepared. This ESMF will be integrated into the operational manual of KOSGEB and to the commitment agreement to be concluded between KOSGEB and sub-project sponsors. Based on the planned scope of the project, environmental and social risks are low, and no other safeguard policy has been triggered. Since the sub-projects under the project cannot be defined until the project is started to be implemented, an environmental safeguards review framework has been prepared to assist in environmental and social review procedures. The operations of sub-project sponsors will be executed in compliance with the Environment Law of the Ministry of Environment and Urbanization (MoEU) and the World Bank’s DB environmental and social policies. Environmental Impact Assessment (EIA) process is run to identify the potential positive or negative impacts of proposed sub-projects, prevent or minimize the negative impacts that may harm the environment and to evaluate the measures to be taken to control and supervise sub- project implementation. The sub-projects to be financed under KOSGEB grant project must be subject to an environmental and social review process consisting of procedures defined by KOSGEB in this section. KOSGEB will be responsible for successful implementation of the project. At the first implementation step, KOSGEB must define the following types of sub-project proposals as INELIGIBLE for finance under this project, and thus reject such proposals: a) If the project is a Category A1 project b) If the sub-project is an Annex-B project c) If the sub-project is covered by the WB’s policy on Safety of Dams (OP/BP 4.37), e.g. if the project involves the construction or rehabilitation of a dam or if achievement of any of the project objectives depends on an existing dam); d) If the sub-project triggers WB policy on Natural Habitats (OP/BP 4.04), i.e. if the project site is within a natural conservation area or if the project activities would result in changes in natural habitats (critical and non-critical natural habitats); e) If the sub-project triggers WB policy on Projects on International Waterways (OP/BP 7.502), e.g.: is the investment3 is would result in uses or pollution that would change 1 World Bank categorization is defined in Section VI.2. 2 This policy applies to the following types of international waterways: (i) any river, canal, lake, or similar body of water that forms a boundary between, or any river or body of surface water that flows through, two or more states; (ii) any tributary or other body of surface water that is a component of any waterway described above; and (iii) any bay, gulf, strait, or channel bounded by two or more states or, if within one state, recognized as a necessary channel of communication between the open sea and other states--and any river flowing into such waters. the quality and quantity of water in international waterway, as defined in OP/BP 7.50; or f) If the sub-project supports any investment that requires land acquisition or an associated involuntary resettlement, as defined in the World Bank’s policy on Involuntary Resettlement (OP/BP 4.12). The sub-project sponsor needs to apply to KOSGEB for the finance of sub-project after obtaining all environmental permits and approvals required under Turkish legislation. KOSGEB must screen the project according the World Bank’s categorization (Category A, B or C) based on OP 4.01. After this screening, if the sub-project is categorized as Category A according to WB criteria, then the sub-project sponsor must be informed that the project is not eligible for finance. Only sub-projects which are categorized as category B or Category C, and which do not involve construction activities, can be financed under this project. According to WB’s OP 4.01, project categorization must be done by taking into consideration the following criteria: (a) Category A: A proposed project is classified as Category A if it is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. EA for a Category A project examines the project's potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" situation), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. For a Category A project, the borrower is responsible for preparing a report (normally an EIA). (b) Category B: A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas--including wetlands, forests, grasslands, and other natural habitats--are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measures can be designed more readily than for Category A projects. The scope of EA for a Category B project may vary from project to project, but it is narrower than that of Category A EA. Like Category A EA, it examines the project's potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance, usually in an EIA, preliminary EIA, checklist, etc. For some Category B projects, Environmental and Social Management Plan (ESMP) or another instrument (e.g. environmental audit) may be sufficient. (c) Category C: A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EA action is required for a Category C project. 3 Sub-project applications may involve investments / activities relating to use of water (e.g. installation of more powerful / efficient water pumps, revisions that may change wastewater characterization in some industrial plants, etc.). In such a case, whether the activities involved in the sub-project affect international waterways has to be investigated by the FI bank. If there is an international waterway to be affected by the investment, the FI cannot finance them from the WB funds. Furthermore, the FDI must check whether there is any transboundary impact, and such an impact is confirmed, then the application must not be financed from the WB funds. As mentioned above, for Category B projects, partial EIA or ESMP may need to be prepared according to OP 4.01, depending on the nature of project. For Category B and C sub-projects, one of the following three options applies: a. If a Category B sub-project is covered by Annex-I according to Turkish EIA Regulation, then a Turkish EIA report must be sent to MoEU for eligibility. Partial EA (Environmental Assessment) is expected to be required for such projects under OP 4.01. In this case, the existing EIA is checked and whether it satisfies WB requirements pursuant to OP 4.01, or any gap that needs to be covered, will be determined. Here, it must be noted that an additional public consultation meeting may be needed on a clear ESMP and EIA document that clearly and concretely outline all mitigation and safeguard measures for highly potential deficiencies. However, Category B sub-projects that involve large scale construction activities are not expected under the project. Still, construction / modification works that may arise as a result of machinery / equipment purchase under the project may require preparation of ESMP if their environmental impacts are significant. In this context, KOSGEB will inform sub-project sponsors about the nature of other relevant gaps and the additional work required to meet the WB requirements. b. If a Category B sub-project is covered by Annex-II according to Turkish EIA Regulation, then a Project Information File (PID) must be sent to the related Provincial Directorate of MoEU instead of an EIA report. Such projects are expected to require ESMP under OP 4.01. As mentioned above, sub-projects involving large scale construction activities will not be evaluated under this project, but only minor construction / modification works to be required as a result of machinery / equipment procurement may be included. If these activities have environmental and special impacts, it may be necessary for KOSGEB to prepare sub-project specific ESMP. Since Turkish EIA Regulation does not require ESMP and public consultation meeting for Annex-II projects, these may be considered as gaps that need to be filled by sub- project sponsors. KOSGEB will review the related documents and determine the additional requirements of the WB. c. If a Category C sub-project is subject to neither Annex-I nor Annex-II according to Turkish EIA Regulation (i.e. if it is a “No-Annex” project) then there will not be any environmental documentation most probably. Still, the sub-project sponsor may need to organize a public consultation meeting to meet the WB requirements. It must be noted that the installations of existing building and the extension of existing buildings are often regarded as “No-Annex” “No-EIA” project according to Turkish EIA Regulation; but they may be categorized as Category B project by the WB. In such cases, as mentioned above, environmental documentation will not be required under Turkish legislation, but a simple ESMP may need to be prepared to meet the requirements of OP 4.01. Renovation works that cover only the replacement of machinery / equipment are also regarded as No-Annex” “No-EIA” project according to Turkish EIA Regulation (as long as the resulting wastes, emissions, wastewater discharges, etc. do not substantially change the result of that replacement process) and they may be categorized as Category C under the WB safeguard policies. At the time of initial application, the project sponsor will declare the category of the activity to be funded by grant, according to EIA Regulation, will declare that the activity is No-Annex if it is not covered by the annexes, and will submit supporting documents (e.g. EIA No-Annex letter) at the final application stage together with other application documents, to KOSGEB. In addition, the grant recipient will undertake to comply with all permits required under the Environment Law. The project is not expected to lead to large-scale, significant and/or irreversible impacts. It is anticipated that the sub-projects to be financed will consist mostly of supporting manufacturing activities within existing buildings and thus will not involve large scale construction works. However, by using the Screening Forms, KOSGEB should verify that the existing facility/activity is compliant with the Turkish environmental legislation and all necessary permits and approvals have been obtained. In addition, the sub-project grant recipient must undertake that all labor health and safety measures are taken pursuant to the national labor legislation, for the activity to be financed from the grant, will inform KOSGEB of any accident involving an injury that occurs at the workplace within three working days and KOSGEB will share that information with the WB within three working days. Since projects involving any type of land acquisition are not eligible for finance, KOSGEB will make sure that all the planned works will be carried out in the existing factory / production buildings and/or on existing lands owned by industrial zones and that investment assessments confirm that the related areas are currently not occupied by any other person or is not used for any economic activity. With regard to cultural assets, local municipalities are responsible for enforcing Turkish laws and regulations including those governing cultural heritage. Relevant provisions will be incorporated into business contracts requiring that construction works be stopped, and relevant authorities are informed immediately if a contractor finds or comes across a chance- find. Since the national legislation on protection of cultural assets is already strict, it is anticipated that no extra requirement will need to be satisfied under the WB safeguard policies. Once the environmental conditions are determined and the sub-project file is prepared together with relevant permits and explanations, KOSGEB will evaluate the proposed grant application. KOSGEB will monitor compliance with the environmental obligations established by legal authorities and the requirements of WB safeguard policies. Public Consultation and Grievance Mechanism Under the project, a public consultation meeting will be organized both to provide information about the project and introduce this ESMF. Information about this meeting will be announced to the community in advance so that interested people can participate. In addition, KOSGEB will initiate and maintain a grievance redress mechanism (GRM) for the project beneficiaries to submit their requests and concerns/feedback related to the project. This mechanism can be established through existing communication channels of KOSGEB. Since Category A sub-projects are not eligible for finance under this project, the WB public disclosure and consultation requirements for Category A projects will not be discussed in this document. However, according to Turkish EIA Regulation, Annex-I projects are obliged to organize a public consultation meeting during the early stages of EIA process, when EIA report is prepared. According to Turkish EIA Regulation Public Consultation meeting must be announced on the website of MoEU, local and national newspapers, brochures, ads and public statements (minimum 10 days prior to the date of meeting). During the Public Consultation meeting, the consultant makes a brief and clear presentation to the public and receives comments from the public to be incorporated into the EIA preparation process. Furthermore, before EIA decision is taken, the final draft of EIA report must be disclosed to the public. Before an “EIA Positive” or “EIA Negative” decision issued, and the report is finalized, all comments received from the public have to be taken into consideration. This public disclosure and consultation method seem to be sufficient to meet the WB’s requirements for Category B projects. Therefore, no additional procedure would be required apart from the consultation and disclosure requirements under Turkish legislation. If the sub-project is a Category B project, and Annex-II according to Turkish EIA Regulation, then a public consultation meeting would not be required under Turkish legislation, but a public consultation meeting would be needed for compliance with the WB policies. Furthermore, a document that summarizes impacts that may occur when the sub-project will be implemented, and associated mitigation measures, (this could be a draft EIA or an informative document that provides the same information) must be disclosed to the public in advance (approximately 3-4 weeks before the public consultation meeting) (on the website and in hardcopy, in local language). In order to effectively disseminate this information to all related parties, announcements about the disclosure of this environmental documentation must be published through all appropriate mass communication means. However, as mentioned earlier, this project is not expected to involve any large-scale Category B sub-project applications, which require preparation of EIA report or ESMP and involve construction works. Ass mentioned in previous sections, only minor construction / modification works to be required as a result of machinery / equipment procurement may be evaluated under this project and could require preparation of ESMP. In such a case, public consultation will be done to introduce the sub-project as well as the ESMP. Records of informatory meetings are summarized and added in the sub-project ESMPs and progress reports. In case of a Category B project that is categorized as “No Annex” or “Nor EIA” according to Turkish EIA Regulation, then it would be necessary to organize a public consultation meeting form compliance with OP 4.01. KOSGEB, together with the sub-project sponsor, will decide on the format of public consultation meeting based on local conditions. It will be ensured that all parties relating to the project participate in the public consultation meeting. In addition, the WB will disclose the ESMF, which is a part of the Grant Agreement between MoIT and WB, on a publicly accessible website before the Grant Agreement is effective. After the preliminary evaluation process, KOSGEB will share the related fact finding reports and environmental and social documentation with the WB, through frequent progress reports. There is no consultation / disclosure requirement for Category C projects. Environmental and Social Review Process (World Bank) Grant recipients will apply to KOSGEB for the grant, after obtaining the required environmental permits from MoEU or related Provincial Directorates of MoEU. Given the time limitations in the model to be set up by KOSGEB, these EIA and related environmental documents will be requested from eligible enterprises at the final application process instead of all applicants. It is the responsibility of KOSGEB to conduct the WB screening of sub- projects and make the initial categorization based on the criteria outlined above. To help the WB fulfill obligations under Turkish EIA Regulation, for the first three sub-project applications, KOSGEB will provide the WB with information on the proposed category of sub-projects (Category B or C) and justifications thereof, and the WB will advice about the additional activities required to meet the requirements for notification to the sub-project sponsor. This practice would help screen all types of potential Category A projects and Category B and C projects that require ESMP. After this “pilot” period, if WB and KOSGEB agree, the WB will convert the screening and environmental assessment process to “ex-post” review. After screening, KOSGEB must review environmental quality certificates in order to define all types of gaps / non-compliance pursuant to the WB safeguards policies. If case of any gap, KOSGEB must require additional activities (documents, minutes of public consultation meetings, etc.) from the sub-project sponsors / grant recipients. Accordingly, if there is an EIA report or PID, KOSGEB must check whether the document clearly specifies all impacts and related mitigation measures together with conditions of monitoring. Environmental assessments and review procedures will be subject to review by the WB supervision missions. WB will be entitled to conduct ex-ante or ex-post reviews for all projects. The review of environmental assessments must verify that the screening has been conducted consistently and properly, that the work is of satisfactory quality, that the recommendations communicated when approvals are issued are followed, that all documents are properly presented and recorded, and that the ex-post review conditions after the approval of MoEU provincial Directorate and other public authorities are satisfied. During the implementation of sub-project, WB missions will supervise the overall screening process, and the implementation of environmental recommendations for the selected sub- borrowers/project. The WB supervision mission will also check the environmental permits collected in compliance with the sub-project objectives. Therefore, KOSGEB must archive all documents and make their available upon request by WB. Annex A: Environmental Screening Forms Environmental Assessment Screening Form and Environmental Preliminary Preparation Forms (to be used for existing facilities) are provided below. ENVIRONMENTAL ASSESSMENT MONITORING FORM (to be filled out by KOSGEB) Sub-project Owner/Developer: Name of Sub-Project: Brief Description Brief description of the sub-project (nature of the sub-project, cost of sub-project, physical sizes [aRea of facility, yearly production, etc.], whether there is any property transfer or ongoing activities, plans for extension [nature of new investment, change of type or production capacity] or new construction: estimated potential impact on production) Screening Category according to Ministry of ANNEX-I [ ] Environment and Urbanization – Turkish Legislation ANNEX -II [ ] NO- ANNEX [ ] Environmental Permit according to Turkish EIA POSITIVE [ ] Legislation EIA NOT NECESSARY [ ] NO NEED FOR OFFICIAL APPROVAL [ ] Screening Category according to WB INELIGIBLE IN FOLLOWING CATEGORY B CATEGORY C Safeguard Policies CASES: [ ] [ ] - Category A [ ] - Under Annex-B of this Manual [ ] - The sub-project triggers the WB policy on Natural Habitats [ ] - The sub-project triggers the WB policy on Safety of Dams [ ] - The sub-project triggers the WB policy on International Waterways [ ] - The sub-project triggers the WB policy on Involuntary Resettlement [ ] Next Steps for Environmental Assessment (if ESMP available [ ] No ESMP [ ] EA Document Not Necessary the sub-project is eligible) (only for Category C projects) - ESMP Necessary [ ] ESMP sufficient [ ] [ ] - Environmental Checklist ESMP not sufficient, needs to be revised Necessary [ ] [ ] Next Steps for Public Consultation (if the sub- Public Consultation (PC) Activities and PC Activities and Documents PC Activities NOT Necessary project is eligible) Documents sufficient NOT sufficient (only for Category C projects) - Public Consultation meeting / [ ] [ ] disclosure of environmental documents needed to inform the public [ ] Additional comments to improve ESMP and PC Activities DATE: DEVELOPER KOSGEB PROJECT OFFICER REPRESENTATIVE SIGNATURES: SIGNATURES: PRELIMINARY ENVIRONMENTAL PREPARATION FORM FOR EXISTING FACILITIES (to be filled out by sub-project sponsors) Sub-project sponsor: Name of sub-project: Location Organized Industrial Zone [ ] [ ] Industrial Parcel [ ] Other (please explain): Is there land acquisition? NO YES [ ] [ ] Does the project involve NO YES If YES, please describe in terms of potential environmental impacts machinery/equipment investment? [ ] [ ] Is there any construction/renovation NO YES If YES, please describe in terms of potential environmental impacts activities in the scope of the project? [ ] [ ] Will the grant support a new business NO YES If YES, please describe briefly area or production type (as different [ ] [ ] from ongoing activities)? Valid Environmental Permits EIA Positive or EIA Not Necessary YES NO N/A [ ] [ ] [ ] YES NO N/A EXPIRED Emission Permit [ ] [ ] [ ] [ ] YES NO N/A EXPIRED Wastewater Discharge [ ] [ ] [ ] YES NO N/A EXPIRED Wastewater Connection [ ] [ ] [ ] YES NO N/A EXPIRED Deep Sea Discharge [ ] [ ] [ ] YES NO N/A EXPIRED Hazardous Waste Storage (Temporary) [ ] [ ] [ ] YES NO N/A EXPIRED Hazardous Waste Transfer [ ] [ ] [ ] YES NO N/A EXPIRED Reclamation Plan for Mining Facilities [ ] [ ] [ ] YES NO N/A APPLICATION Environmental e-Permit [ ] [ ] [ ] FILED [ ] Is there any pending environmental fine Other (please explain): If YES, please explain: or an ongoing lawsuit / investigation? YES NO DATE: [ ] [ ] DEVELOPER REPRESENTATIVE SIGNATURES : Annex B: List of ineligible sub-projects 1. Commercial activities regarding habitats and products, which are prohibited within the framework of CITES Convention. 2. Release of genetically modified organisms to wild life. 3. Production, distribution and sales of prohibited pesticides and herbicides. 4. Trawl fishing. 5. Radioactive products 6. Hazardous waste storage, processing and disposal 7. Production of equipment and materials containing CFC, halone and other substances regulated under Montreal Protocol 8. Manufacturing of electrical equipment containing more than 0.005% PCB (polychlorinated biphenyls) in weight. 9. Manufacturing of asbestos containing products 10. Nuclear reactors and parts 11. Processes or unprocessed tobacco, and tobacco processing machinery