E4591 REV ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector June 2014 1 1. Preface Present Environmental and Social Management Framework (ESMF) is an integral part of the Operations Manual of the Biological Farming Association Elkana prepared for the purposes of implementing the World Bank and Japan Social Development Fund (JSDF) supported project - Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector, in compliance with the national policies and regulations as well as with the safeguard policies of the World Bank. ESMF covers environmental, cultural, and social aspects of project management. ESMF refers to the possibility of involuntary resettlement in the course of the project implementation. However mechanisms of handling involuntary resettlement are not covered by this ESMF because Elkana has a self-standing Resettlement Policy Framework (RPF), which provides guidance for identifying in what circumstances the resettlement policy applies, as well as for developing and implementing Resettlement Action Plans (RAPs). 2. Project Context In June 2010, the Government approved the State Strategy on the Regional Development of Georgia for 2010-2017 (Government resolution no. 172), prepared by the Ministry of Regional Development and Infrastructure (MRDI). The objectives of the strategy are to create a favorable environment for regional socio-economic development and to improve living standards. These objectives will be attained through balanced socio-economic development, increased competitiveness, and greater socio-economic equality among the regions. Georgia intends to fully tap its potential to promote sustainable tourism in promising regions. An investment by the Government of $300 million between 2005 and 2011 in the economic and physical revitalization of cities such as Tbilisi, Signagi, Mtskheta, Batumi, and Kutaisi was a key factor in the increase of tourists from 560,000 in 2005 to 2.7 million in 2011.1 The number of tourists to Georgia is projected to reach 6.2 million by 2014.2 However, Georgia is yet to realize its full tourism potential by investing in other promising regions. The government is now looking towards an integrated and demand-driven approach to sustainable tourism in secondary and historic cities. Sectoral and Institutional Context Kakheti and Imereti Regional Context. Located in the Eastern part of the country, Kakheti is the largest region in Georgia, with an area of approximately 11,300 km² and eight municipalities. It has about 404,000 inhabitants, at a population density of 35 persons per km². 3 It is one of the poorest regions in the country, with a poverty rate of 25%, slightly above the country average of 24%.4 The current unemployment rate is about 11%, which is below the Georgia average of 16%. The relatively low unemployment rate is attributed to the rural character of the region, in which a large section of the population is involved in low productivity agricultural self-employment. The Imereti Region is located in the western part of the country and occupies a territory of approximately 6,552 km². It consists of 12 administrative districts, 10 cities, 3 towns, and 529 1 Georgia National Tourism Administration. Statistics and Reports (2013). http://gnta.ge/stats/portal/ 2 Ibid 3 National Statistics Office of Georgia. Database (2013). 4 Ibid villages. It has about 703,485 inhabitants, at a density of 107 persons per km².5 The poverty rate in the region is 14%, and the unemployment rate is 11%.6 Kakheti and Imereti have great potential for tourism development that can boost the regional economies. Services, especially tourism, have become increasingly significant in the two regions, generating about 60% value added in Kakheti, and 73% value added in Imereti.7 Widely recognized as a region of ancient culture, Kakheti is home to several ancient and unique monuments in Georgia. It is also known as the cradle of vine and wine. Approximately 178,000 visitors travelled to Kakheti in 2011, including overnight tourists and day excursionists.8 This is estimated to be an increase of over 48% from the preceding year, and the number is expected to increase to over 250,000 visitors per year with improved infrastructure and institutional capacity from Regional Development Project (RDP). Imereti is home to numerous churches, castles, archeological monuments, and museums. The region also has 3 protected territories,9 12 unique caves and 9 Spa Resorts. 740,000 visitors travelled to the region in 2010.10 The Imereti Tourism Development Strategy projects an increase of tourists to 1.20 million by 2016 and to 2 million by 2020.11 The projected growth in the tourism market provides an opportunity for the participation of poor and vulnerable groups in the expansion of micro, small, and medium-sized enterprises (MSMEs) in the tourism sector. As the tourism market expands, there will be an increase in demand for goods and services provided by locally-owned MSMEs. Current tourism-related enterprises in Kakheti and Imereti include the provision of agricultural products, crafts, souvenirs, and various services. Viticulture is a common agricultural activity, and both regions are well-known for the local production of wine. Both regions produce a wide variety of fruits and vegetables, cattle and dairy products, which supply tourism businesses and visitors. The production of handmade souvenirs, carpets, and crafts for sale is also a common tourism-related activity among local populations. Services provided by local residents include walking tours, the provision of affordable housing for visitors, and edutainment shows in which local residents showcase local traditions and culture. There are numerous opportunities for the participation of poor and vulnerable groups in such enterprises, which would help to raise incomes and alleviate poverty among host populations. The expanding tourism sector also provides an opportunity to increase local ownership of tourism development by engaging local community members in the planning and implementation of tourism-related activities. Small works that engage neighborhood groups in community-driven maintenance initiatives is one way to engage local communities—especially the poor and vulnerable amongst them—in tourism development. This would not only increase local ownership of tourism development, but it would also provide linkages for poor and vulnerable communities to 5 Ibid 6 Ibid 7 Georgia National Tourism Administration. Statistics and Reports (2013). http://gnta.ge/stats/portal/ 8 Ibid 9 A widely accepted definition of protected territories is provided by the International Union for Conservation of Nature as: "A clearly defined geographical space, recognized, dedicated and managed, through legal or other effective means, to achieve the long-term conservation of nature with associated ecosystem services and cultural values." [ 10 Ibid 11 Georgia National Tourism Agency. (2012). Imereti Tourism Development Strategy 3 the local economy, and sustainably preserve social and cultural heritage. Community mobilization approaches that encourage community members, including Internally Displaced People (IDPs), to collaborate with each other would help to build social capital by defining and acting on common goals. Despite the increased opportunities for participation in the tourism sector, poor and vulnerable communities and individuals face significant constraints in fully exploiting them. One constraint is in access to financial services. In the context of high interest rates and collateral requirements, poor and vulnerable groups are often unable to access credit to finance entrepreneurial ventures. Coupled with a dearth of training opportunities for enterprise skills, poor and vulnerable groups may find it particularly difficult to benefit from the increase in tourism-related business opportunities. Another significant constraint is limited social capital among these groups. In Georgia, social networks are especially important for disseminating information about employment opportunities, facilitating contacts, and making connections that are useful for collaboration in business ventures. Poor and vulnerable groups are at risk of exclusion from broader social networks and may be unable to benefit from the opportunities they present. These groups are also at risk of exclusion from community-driven efforts in tourism development, and the social and economic benefits of such initiatives. A prominent vulnerable group in Georgia in general, and in Kakheti and Imereti in particular, is IDPs. As other poor and vulnerable groups, IDPs face significant challenges in accessing financial services and inclusion in wider social networks. However, these challenges are especially acute in the lives of IDPs. Without privatized housing or land to use as collateral, many IDPs are unable to access credit. Chronic unemployment often compounds the problem. As recent arrivals to the local communities, coupled with residence in physically segregated collective centers, IDPs are often not fully part of broader social networks. The psychosocial impacts of displacement such as residual feelings of loss, depression, alcoholism and listlessness are compounded by the day-to-day pressures of poverty among IDPs.12 These challenges pose significant constraints for IDPs to participate in the growing tourism sector and to benefit from the opportunities in entrepreneurship and community development. Among poor and vulnerable groups in Kakheti and Imereti, women face gender-related constraints that further prevent them from participating in the development of the tourism sector. Women face significant gender barriers in the local investment climate, despite their potential for business and job creation. As of 2011, the labor force participation rate of women in Georgia was 55.8%, compared to 76.5% for men.13 Most are self-employed, often working for family farms or in businesses for no remuneration. In the aftermath of the crises in 2008, the poverty rate among female-headed households is estimated to have increased at a rate twice as high as that for male- headed households, particularly in rural areas. Among IDPs, those classified as living in extreme poverty or other forms of extreme vulnerability often consist of female-headed households and 12 The World Bank. (2013). Supporting the livelihoods of Internally Displaced Persons in Georgia. http://imagebank.worldbank.org/servlet/WDSContentServer/IW3P/IB/2013/07/03/000333037_20130703101637/Rend ered/PDF/791740WP0Georg0Box0377356B00PUBLIC0.pdf 13 National Statistics Office of Georgia. Database (2013). http://www.geostat.ge/index.php?action=page&p_id=1145&lang=eng 4 widows. The higher risk for poverty and vulnerability among women often constrains them from participating in entrepreneurial ventures. Collateral requirements, high interest rates for loans, and a scarcity of gender-sensitive training opportunities for enterprise skills pose significant challenges for the participation of women in the expanding tourism sector. 3. Development Objective, Expected Results, and Design of the Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector Project A. Proposed Development Objective The development objective is to support employment generation and increase household incomes for targeted poor and vulnerable communities in the Kakheti and Imereti regions by helping them to (i) start/grow micro, small, and medium-sized enterprises in the tourism sector and (ii) implement small works in the vicinity of cultural heritage sites. An estimated 2700 poor and vulnerable people, including IDPs, will directly benefit from this project. This number corresponds to the number of jobs created through the support to the creation of MSMEs and small works in the vicinity of cultural heritage sites aimed at improving visitation experience of tourists. The grant will equip local poor and vulnerable individuals with competitive matching grants, know-how and information, for the creation of no less than 500 MSMEs in cultural and tourism-related industries. These are expected to provide employment to 4 people each on average, for a total of 2000 jobs. The small works for the improvement and maintenance of the access to the cultural heritage sites will require less skill, as they will mostly consist of physical labor. The number of beneficiaries from this activity is expected to be 700. Expected Results The following outcomes are expected from the JSDF project, as measured by the listed indicators: DEVELOPMENT OUTCOME INDICATORSi Project Baseline End Target (a) Development of the cultural/tourism sector 0 500 (measured by the number of MSMEs started/expanded using the project’s matching grants, segregated by gender and IDPs) (b) Increased employment opportunities, (measured by 0 2,700 the number of new jobs created, segregated by gender and IDPs) (c) Increased household income of beneficiaries, Average across all 20% increase (measured by the difference in monthly income of targeted households to at household participatory households due to their activities in the be determined in level tourism sector between the start and end of the project, baseline once segregated by gender and IDPs) beneficiaries selected (d) Improved entrepreneurial capacity (measured by the 0 500 number of persons benefiting from technical assistance, segregated by gender and IDPs) (e) Implemented sub-projects for the improvement of the 0 60 areas along the access routes and in the vicinity of cultural heritage sites (measured by the number of 5 communities interventions) B. Project Design Proposed Project Components The Empowering Poor Communities and Micro-entrepreneurs in the Georgia Tourism Sector Project will provide complementary activities to the RDP and RDP II that will galvanize the impact of the expanding tourism sector for the poorest and most vulnerable, and increase local community ownership of tourism development. The project consists of the five components: Component 1: Assessments (US$ 82,680). (i) Market Assessment. Knowledge of current and potential markets for tourism-related MSMEs in Kakheti and Imereti, and the desired products and services from these enterprises is crucial to the proper design of the Technical Assistance and Capacity Building activities. Product and service offerings for potential further development were identified in the tourism value chain analysis conducted in Kakheti,14 and the Imereti Tourism Development Strategy.15 Potential offerings included cultural heritage activities, wine heritage, and nature and adventure activities. These analyses were used to inform the improvement of basic infrastructure, the development of a more skilled workforce at the institutional level, product improvements, and more effective marketing and promotion of the region. There is a need however for further analysis of the role of MSMEs in the provision of needed products and services, and the markets for such offerings. The Terms of Reference for this consultancy will be developed before project effectiveness and will be ready at the onset of the Grant. The market assessment will be completed within four months of JSDF financing. (ii) MSMEs and gender assessment. This assessment will be carried out with the objective of better understanding MSMEs and vulnerable groups’ role, including women, in the local economy. An analysis will be undertaken of the economic constraints faced by vulnerable groups, in particular women, and the potential of their sectors of activity to be linked to the tourism and agro-processing sectors. Baseline indicators will be drawn from these analyses. This output will closely inform the design of components 2 and 3. Unlike the market assessment, existing data on MSMEs and gender is largely available from official national data records and only needs to be revised in light of the proposed activities of the grant. Results will be available at the onset of financing by JSDF. The results of the above assessments will be collected in a database that will show baseline indicators, and ongoing progress. These will be used to inform the impact assessment. Component 2: Technical Assistance and Capacity Building (US$ 220,800). (i) Provide training to MSMEs. This sub-component will include management and other skills development, advisory services, training on access to markets (particularly tourism), and product development. The goal is to address the constraints of poor and vulnerable groups in 14 Solimar International, Inc. (2012), “Kakheti Tourism Development Part I: Value Chain Analysis” 15 Georgia National Tourism Agency. (2012). “Imereti Tourism Development Strategy” 6 accessing networks and know-how to tap into the tourism sector opportunities. Gender- sensitive training will be provided for women among the targeted beneficiaries. This component will be shaped by the results of the market and gender assessments. Training activities will be undertaken under the stewardship of the implementing agency, Elkana, in coordination with other NGOs as needed. Component 3: Support to MSMEs (US$ 1,080,000). (i) Matching grants will be provided in the maximum amount of US$ 2,000 to eligible beneficiaries to start or expand their businesses/enterprises. The matching grant will be utilized to support the production of goods and services related to cultural heritage for micro-entrepreneurs currently not targeted by the RDPs. This may include agro-processed foods, guiding services, handcrafts, performing arts, and other cultural industries. The grant will cover activities such as equipment, services, product promotion, and the acquisition of technical and market information. The details of the sub-grants will be provided in the Operations Manual that will be prepared before project implementation. The grant facility will be accessible on a repeat basis for scaling-up the initial enterprise based on the performance of the first grant (including number of people employed by the enterprise). Beneficiaries receiving funds to expand their operations will be required to hire at least one person who will benefit from their business and thus provide employment opportunities (it is expected that on average, the supported micro-enterprises will contain 3-4 employees). Selected beneficiaries can get support (maximum 50% of the estimated costs of their planned productive investment) for upgrade or purchase of technical equipment (e.g. pasteurization device, wine bottling equipment, fat measuring device, sewing machines, etc.) or building material. The beneficiaries’ contribution will cover rehabilitation of properties/work space and be at least 50% of the needed sum. Transparent eligibility criteria and selection processes are described in the project manual and will be further developed and adopted on the basis of the market and gender assessments. Eligible Activities will include, inter alia,:  Agro-processing,  Guiding services,  Handicrafts,  Performing arts,  Hospitality venues and services (cafes, restaurants, B&B, etc.)  Promotion and marketing of products, services and destinations,  Other cultural industries. Ineligible activities include:  Activities whose nature is not in compliance with the Eligible Activities listed above  Activities that require land acquisition  Activities that will have a negative environmental impact Grant Selection Criteria will include: 7  Rationale (correspondence with an existing demand or validated rationale for a projected demand)  Soundness of the business plan (cost-effectiveness, reasonable return on investment based on 3 years operations)  Number of jobs created  Compliance with National and Local Laws and Regulations16  Ability to match grant amount requested in financial and/or in-kind contribution17 (ii) Support will be provided to MSMEs to enhance their business development capacity, and build credit with local financial institutions. This will include consultations, meetings, and workshops that will link entrepreneurs with local business associations and financial institutions. Guidance will be provided to the entrepreneurs on preparing loan applications, negotiating the terms of the loans, and better understanding the appraisal requirements of financial institutions. This is intended to address the constraints poor and vulnerable groups face in accessing credit even after the completion of the project. A detailed design and operational arrangement with the local financial institutions for achieving long-term bankable activities will be further developed and confirmed by the results from the MSMEs and gender assessment. Component 4: Community Mobilization for Implementation of Small Works at Targeted Cultural Heritage Sites (US$ 741,520). The JSDF grant will support community mobilization and small works at targeted cultural heritage sites using the following process/activities: (i) Community mobilizers/facilitators will work closely with communities in developing clear and transparent criteria for the grant facility; disseminating information and organizing meetings with residents and local Community Based Organizations (CBOs); developing feasible sub-project ideas; overseeing implementation of small works by the CBOs; ensuring that applicants have the qualifications corresponding to the type of activity proposed (mostly labor); ensuring transparency of the processes to avoid elite capture; and liaising between the community and the funding facility. (ii) A stakeholder dialogue platform will be created that will include: selected applicants, municipal authorities, and representatives from the two Regional Development Projects (Municipal Development Fund - MDF, the National Cultural Heritage Protection Agency - NCHPA and the Georgian National Tourism Administration -GNTA). This is intended to encourage partnerships, accountability and sustainability, ensure that small works are 16All activities funded under the grant facility must comply with all national and local laws and building by-laws, including but not limited to, those for cultural heritage and environmental protection. 17 In-kind contributions include goods, materials, works and services, such as labor, construction materials and/or equipment. Technical experts in the Grant Approval Committee will certify the accuracy of the in-kind contribution values. 8 conducted by individuals with the appropriate skills, and that interventions remain within the scope of this grant. The platform will be created at the start of the JSDF grant and will meet at least twice a year to discuss the project implementation. It will be facilitated by Elkana with close support from MDF/NCHP and local municipalities. (iii) Community driven initiatives will be supported for the improvement of cultural heritage sites and access. The grant facility will fund community driven initiatives that engage neighborhood groups in protecting their own heritage through maintenance initiatives such as cleaning, access to sites, signage and interpretation, under the stewardship of the NCHPA. Those activities will be small scale initiatives not currently financed under RDP and RDP II. The grantees will be required to contribute up to 20% of project costs in cash or in kind. The size of the grant supporting the community driven initiatives shall not exceed USD 60,000. Component 5: Participatory Monitoring and Impact Evaluation and Project Management and Administration (US$ 375,000) (i) Participatory Monitoring and Impact Evaluation Participatory monitoring: This activity will build upon community mobilization activities carried out under component 4 and train selected staff of municipalities to oversee participatory monitoring activities. Specific activities will include: a) the development of impact indicators and other performance measures for quantifiable results; b) a beneficiaries' assessment at the onset and at the end of the project. A consultant to document lessons learned through grant implementation will be recruited. A workshop will be held to present the results and findings of the JSDF project, and will be distributed to all stakeholders. A Beneficiary feedback mechanism will be put in place by Elkana at the project start to collect and address project beneficiaries’ feedback. Results will be monitored and reported annually. Impact evaluation: Annual surveys will be carried out to monitor the impact of provided training and matching grants and to compare results to baseline data. Additionally, these surveys will cover both control and treatment groups so that the Donor and the WBG will have real evidence of poverty and vulnerability reductions as a result of the proposed grant. (ii) Project Management and Administration This subcomponent will cover the incremental operating costs of the NGO managing the activities. 4. Introduction to the Environmental and Social Management Framework This ESMF is a technical day-to-day guide for implementing Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector Project in the environmentally and socially responsible manner and with full preservation of cultural heritage of the region. It provides guidance for screening subproject proposals for the risks of deteriorating natural environment, damaging cultural heritage, and resulting in negative social impacts. Based on the outcome of risk 9 identification, EMF offers two formats for environmental, cultural heritage, and social review and for planning mitigation measures. EMF also carries uniform templates to facilitate conduct of subproject screening, review, and management planning procedures. 5. Environmental Compliance of the Project Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector Project must be implemented in full compliance with the national legislation, including laws, regulations, and standards governing environmental management, social protection, and preservation of cultural heritage of the country. As far as the World Bank provides core financing for the project implementation, the safeguard policies of the World Bank also apply. The Project is classified as environmental Category B with subproject rating as higher or lower risk category B. Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector Project triggers the following safeguard policies of the World Bank: OP/BP 4.01 Environmental Assessment OP/BP 4.11 Physical Cultural Resources OP/BP 4.12 Involuntary Resettlement The project carries investment components in support to infrastructure development and therefore triggers OP/BP 4.01 Environmental Assessment. Based on the principles of the OP/BP 4.01, most of the expected investment subprojects fall under environmental Category B, while some may be environmental Category C. The entire project is ranked as environmental Category B. All subprojects will require examination of environmental and social risks and risks to the cultural/historic heritage. Based on the outcome of risk assessment and classification of subprojects, subproject-specific sets of risk mitigation measures will be developed and environmental and social monitoring of works will be planned. Depending on the level of risk to be assessed in the process of environmental screening of subproject proposals, present ESMF proposes differing scope and format of environmental due diligence. OP/BP 4.11 Physical Cultural Resources is triggered to ensure that restoration/conservation of historical buildings and works in the immediate proximity to the cultural and natural heritage sites do not affect structural stability of the existing constructions and do not depreciate historical and aesthetic value of heritage sites. OP/BP 4.12 is triggered to address the cases of possible involuntary land acquisition under the targeted investments. Because the location and footprint of these investments will not be known until implementation, the RPF is prepared and RAPs for individual subprojects will be developed as needed in line with the RPF and resettlement measures implemented prior to commencement of civil works at any given subproject site. The World Bank operational policies also require that all investment designs reflect results of public participation and integrate governmental interests along with those of private businesses and 10 civil society. In this spirit, Elkana will ensure that the preparation of EMPs for subprojects includes consultation with affected parties and public disclosure of the associated documents. 6. Sub-project Screening and Approval The purpose of sub-projects’ screening (Attachments 1 and 2) is to identify the main threats and benefits it carries for the natural environment, social strata, and cultural heritage. Risks associated with various sub-projects may vary. Environmental screening is a tool for filtering out sub-projects that are detrimental for environment and for identifying a need for environmental management planning (Attachment 1). Likelihood of high risk sub-project that fall under environmental Category A is almost non-existent. No Category A sub-project may be supported under JSDF- financed project. Such sub-projects are ineligible. For eligible sub-projects which imply physical works and are classified as environmental Category B, an Environmental Management Checklist for Small Construction and Rehabilitation Activities has to be filled out (Attachment 3 to this ESMF). If no physical works are to be financed, or if the planned works are not expected to have any tangible impact on the environment, then they are classified as environmental Category C and do not require further environmental work. Social screening is also part of the sub-projects’ screening and approval process. It allows identifying a need for applying OP/BP 4.12 Involuntary Resettlement to a particular sub-project, in which case the next steps and actions will be guided by the Resettlement Policy Framework prepared for JSDF-financed project. Social and cultural resource screening of sub-projects will be carried out using the special screening form (Attachment 2). Outcomes of environmental, social, and cultural screening of sub-project applications are an integral part of the decision-making on the final approval of these applications. 7. Environmental and Social Review and Environmental Management Planning The purpose of environmental and social review of a proposed subproject is to assess and analyze potential risks for the natural environment, cultural heritage, and social strata; specify expected impacts, their scope, magnitude and duration; examine alternatives to the proposed design and technological approaches; identify ways of mitigating expected negative impacts (as well as the possible ways of enhancing positive impacts); estimate costs associated with application of the recommended mitigation measures; and develop a scheme for monitoring application of the prescribed mitigation measures. Potential impacts at the construction phase as well as during operation of the infrastructure supported from the project must be considered in the process of the environmental review. Development of an environmental management and monitoring plans is an integral part of the environmental review process. Environmental Management Checklist for Small Construction and Rehabilitation Activities (Attachment 1) is a tool for environmental management planning for low risk small scale projects. It is a template to be filled in with short information about the location of a subproject site, 11 physical and natural environment around it, land ownership, legislation pertaining subproject implementation, and the specific types of activities required for a subproject implementation. Based on these types, the Checklist provides generic sets of mitigation measures applicable to them. Environmental management and monitoring plan has to be developed by the subproject proponent to specify how the mitigation measures will be applied and how their application will be tracked. 8. Public Consultation The project - Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector - was prepared with intense and meaningful consultation with all stakeholders, including top management of several line ministries, Governors of Kakheti and Imereti and their offices, governing and self-governing bodies of the target municipalities of Kakheti and Imereti Regions, representatives of the private sector in Imereti and Kakheti, and Georgia generally, professionals from various academic fields, and most importantly - local communities which will be direct beneficiaries of the project activities, but will also experience direct impacts from the construction and operation of the infrastructure to be provided under the project. Draft EMPs will be disclosed nation-wide, with particular attention to their availability for local communities, in the language and format convenient for them. EMPs will be open for commenting and consultation meetings will be held to facilitate local participation. Public opinion will be considered in finalization of draft EMPs and the documental evidence of the conducted consultation process will be attached to EMPs and kept on file. 9. Environmental Liabilities of Elkana Contractors The EMPs must be finalized prior to tendering works packages and included in the tender documentation, so that potential bidders are aware of environmental performance standards expected from them and are able to reflect that in their bids. Larger scale and discrete mitigation measures shall be included in the Bills of Quantities and priced respectively. An EMP becomes an integral part of a works contract upon its conclusion and their implementation is mandatory for a contractor. Elkana as a client of construction works will be responsible for enforcing compliance of contractor with the terms of the contract, including adherence to the EMP. For minor infringements, an incident which causes temporary but reversible damage, the contractor will be given 48 hours to remedy the problem and to restore the environment. If restoration is done satisfactorily during this period, no further actions will be taken. If it is not done during this period, Elkana may arrange for another contractor to do the restoration, and deduct the cost from the offending contractor’s next payment. For major infringements, causing a long-term or irreversible damage, there will be a financial penalty up to 1% of the contract value in addition to the cost for restoration activities. 12 10. Environmental Monitoring Environmental monitoring will be an integral part of Elkana’s supervisory work in the course of the project implementation. Elkana will be responsible to ensure that on-site managers of works contractors are familiar with EMPs and instruct workers/personnel on the compliance with these EMPs. Elkana will demand from works contractors timely submission of environmental permits for the operation of asphalt/concrete plants (if owned); licenses for the extraction of rock, gravel, and send (if operating quarries); and written agreements with local authorities on the disposal of waste. Elkana will conduct regular on-site monitoring of civil works to verify contractors’ adherence to the requirements set out in EMPs, to identify any outstanding environmental issues or risks, and to ensure proper application of the prescribed remedial actions. In case of recorded incompliance with EMPs, Elkana will instruct contractors on the corrective measures and closely monitor their further progress. 11. Reporting Documenting of environmental supervision of subprojects is mandatory. Monthly monitoring reports will be generated by filling out field monitoring checklists (Attachment 6 to this ESMF), reflecting quality and extent of the application of each mitigation measure prescribed by EMPs. Information provided in checklists should be supported with photo material taken on-site and dated. Environmental chapters of quarterly progress reports on the project implementation shared with the World Bank will carry more comprehensive, analytical information on the status of environmental performance under the Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector Project, including overview of deviations/violations of EMPs encountered over the report period, instructions given to the works contractors for addressing any weaknesses or identified issues, and follow-up actions on the revealed outstanding matters. Prompt notification of the World Bank on any accidents, emergencies, and unforeseen issues which may occur in the course of works and directly or indirectly affect environment, physical cultural resources, personnel of works providers, and or communities residing in the vicinity of a project site is mandatory regardless timelines of reporting. 13 Attachment 1 Environmental Screening of Sub-projects (A) IMPACT IDENTIFICATION Has the sub-project a tangible impact on the environment? What are the significant beneficial and adverse environmental effects of the sub-project? Does the sub-project have any significant potential impact on the local communities? What impact has the sub-project on the human health? (B) MITIGATION MEASURES What alternatives to the sub-project design have been considered and what mitigation measures are proposed? Have concerned communities been involved and have their interests and knowledge been adequately taken into consideration in sub- project preparation? (D) CATEGORIZATION AND CONCLUSION Conclusion of the environmental screening: Sub-project is declined Sub-project is accepted Sub-project is classified as environmental Category B and needs EMP Sub-project is classified as environmental Category C and does not need EMP 14 Attachment 2 Social and Cultural Resource Screening of Sub-projects Social safeguards screening information Yes No Is the information related to the affiliation and ownership status of land 1 and/or building aimed for sub-project intervention available and verifiable? (The screening cannot be completed until this is available) Will the project reduce other people’s access to their economic 2 resources, such as land, pasture, water, public services or other resources that they depend on? Will the project result in resettlement of individuals or families or 3 require the acquisition of land (public or private, temporarily or permanently) for its development? Will the project result in the temporary or permanent loss of crops, 4 fruit trees and household infra-structure (such as granaries, outside toilets and kitchens, etc)? If answer to any above question (except question 1) is “Yes”, then OP/BP 4.12 Involuntary Resettlement is applicable and mitigation measures should follow this OP/BP 4.12 and the Resettlement Policy Framework. Cultural resources safeguard screening information Yes No Will the subproject be implemented in the vicinity of a cultural heritage 5 site? Will the project require excavation near any historical, archaeological 6 or cultural heritage site? If answer to question 5 is “yes”, then OP/.BP 4.11 Physical Cultural Resources is applicable. In this case, sub-project proponent must provide evidence that consultation was held with and an agreement on this sub-project was obtained from an authorized representative of culture and heritage protection authority. If answer to question 5 is “Yes”, then OP/BP 4.11Physical Cultural Resources is applicable and possible chance finds must be handled in accordance with OP/BP and relevant procedures provided in this EMF. 15 Attachment 3 Environmental Management Checklist for Small Construction and Rehabilitation Activities General Guidelines for use of EMP checklist: For low-risk topologies, such as school and hospital rehabilitation activities, the ECA safeguards team developed an alternative to the current EMP format to provide an opportunity for a more streamlined approach to preparing EMPs for minor rehabilitation or small-scale works in building construction, in the health, education and public services sectors. The checklist-type format has been developed to provide “example good practices” and designed to be user friendly and compatible with safeguard requirements. The EMP checklist-type format attempts to cover typical core mitigation approaches to civil works contracts with small, localized impacts. It is accepted that this format provides the key elements of an Environmental Management Plan (EMP) or Environmental Management Framework (EMF) to meet World Bank Environmental Assessment requirements under OP 4.01. The intention of this checklist is that it would be applicable as guidelines for the small works contractors and constitute an integral part of bidding documents for contractors carrying out small civil works under Bank-financed projects. The checklist has three sections: Part 1 includes a descriptive part that characterizes the project and specifies in terms the institutional and legislative aspects, the technical project content, the potential need for capacity building program and description of the public consultation process. This section could be up to two pages long. Attachments for additional information can be supplemented when needed. Part 2 includes an environmental and social screening checklist, where activities and potential environmental issues can be checked in a simple Yes/No format. If any given activity/issue is triggered by checking “yes”, a reference is made to the appropriate section in the following table, which contains clearly formulated management and mitigation measures. Part 3 represents the monitoring plan for activities during project construction and implementation. It retains the same format required for EMPs proposed under normal Bank requirements for Category B projects. It is the intent of this checklist that Part 2 and Part 3 be included into the bidding documents for contractors, priced during the bidding process and diligent implementation supervised during works execution. 16 PART A: GENERAL PROJECT AND SITE INFORMATION INSTITUTIONAL & ADMINISTRATIVE Project title Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector Sub-Project title Scope of site-specific activity Institutional arrangements Task Team Leader: Safeguards Specialist: (WB) Nicolas Perrin Darejan Kapanadze (env.) Nino Metreveli (social) Implementation Implementing Works supervisor: Works contractor: arrangements entity: Elkana (tbd) (Borrower) (insert) SITE DESCRIPTION Who owns the building to be constructed/extended/ reconstructed? Who owns the land allocated for sub-project? Who uses the land (formal/informal)? Description of physical and natural environment, and of the socio-economic context around the site Which of the project intervention sites does sub- project related to and how? LEGISLATION National & local legislation & permits that apply to project activity PUBLIC CONSULTATION When / where the public consultation process took / will take place ATTACHMENTS Attachment 1: Site plan / photo Attachment 2: Construction permit (as required) Attachment 3: Agreement for construction waste disposal Other permits/agreements – as required 17 PART B: SAFEGUARDS INFORMATION ENVIRONMENTAL /SOCIAL SCREENING Activity/Issue Status Triggered Actions A. Building rehabilitation [ ] Yes [ ] No See Section A below B. New construction [ ] Yes [ ] No See Section A below Will the site C. Individual wastewater treatment system [ ] Yes [ ] No See Section B below activity D. Historic building(s) and districts [ ] Yes [ ] No See Section C below include/involve any of the E. Acquisition of land18 [ ] Yes [ ] No See Section D below following? F. Hazardous or toxic materials19 [ ] Yes [ ] No See Section E below G. Impacts on forests and/or protected areas [ ] Yes [ ] No See Section F below H. Handling / management of medical waste [ ] Yes [ ] No See Section G below I. Traffic and Pedestrian Safety [ ] Yes [ ] No See Section H below 18 Land acquisitions includes displacement of people, change of livelihood encroachment on private property this is to land that is purchased/transferred and affects people who are living and/or squatters and/or operate a business (kiosks) on land that is being acquired. 19 Toxic / hazardous material includes but is not limited to asbestos, toxic paints, noxious solvents, removal of lead paint, etc. 18 PART C: MITIGATION MEASURES ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST 0. General Conditions Notification and (a) The local construction and environment inspectorates and communities have been notified Worker Safety of upcoming activities (b) The public has been notified of the works through appropriate notification in the media and/or at publicly accessible sites (including the site of the works) (c) All legally required permits have been acquired for construction and/or rehabilitation (d) The Contractor formally agrees that all work will be carried out in a safe and disciplined manner designed to minimize impacts on neighboring residents and environment. (e) Workers’ PPE will comply with international good practice (always hardhats, as needed masks and safety glasses, harnesses and safety boots) (f) Appropriate signposting of the sites will inform workers of key rules and regulations to follow. A. General Air Quality (a) During interior demolition debris-chutes shall be used above the first floor Rehabilitation and /or (b) Demolition debris shall be kept in controlled area and sprayed with water mist to reduce Construction Activities debris dust (c) During pneumatic drilling/wall destruction dust shall be suppressed by ongoing water spraying and/or installing dust screen enclosures at site (d) The surrounding environment (sidewalks, roads) shall be kept free of debris to minimize dust (e) There will be no open burning of construction / waste material at the site (f) There will be no excessive idling of construction vehicles at sites Noise (a) Construction noise will be limited to restricted times agreed to in the permit (b) During operations the engine covers of generators, air compressors and other powered mechanical equipment shall be closed, and equipment placed as far away from residential areas as possible Water Quality (a) The site will establish appropriate erosion and sediment control measures such as e.g. hay bales and / or silt fences to prevent sediment from moving off site and causing excessive turbidity in nearby streams and rivers. Waste management (a) Waste collection and disposal pathways and sites will be identified for all major waste types expected from demolition and construction activities. (b) Mineral construction and demolition wastes will be separated from general refuse, organic, liquid and chemical wastes by on-site sorting and stored in appropriate containers. 19 (c) Construction waste will be collected and disposed properly by licensed collectors (d) The records of waste disposal will be maintained as proof for proper management as designed. (e) Whenever feasible the contractor will reuse and recycle appropriate and viable materials (except asbestos) B. Individual Water Quality (a) The approach to handling sanitary wastes and wastewater from building sites (installation or wastewater treatment reconstruction) must be approved by the local authorities system (b) Before being discharged into receiving waters, effluents from individual wastewater systems must be treated in order to meet the minimal quality criteria set out by national guidelines on effluent quality and wastewater treatment (c) Monitoring of new wastewater systems (before/after) will be carried out (d) Construction vehicles and machinery will be washed only in designated areas where runoff will not pollute natural surface water bodies. C. Historic building(s) Cultural Heritage (a) If the building is a designated historic structure, very close to such a structure, or located in a designated historic district, notification shall be made and approvals/permits be obtained from local authorities and all construction activities planned and carried out in line with local and national legislation. (b) It shall be ensured that provisions are put in place so that artifacts or other possible “chance finds” encountered in excavation or construction are noted and registered, responsible officials contacted, and works activities delayed or modified to account for such finds. ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST D. Acquisition of land Land Acquisition (a) If expropriation of land was not expected but is required, or if loss of access to income of Plan/Framework legal or illegal users of land was not expected but may occur, that the Bank’s Task Team Leader shall be immediately consulted. (b) The approved Land Acquisition Plan/Framework (if required by the project) will be implemented E. Toxic Materials Asbestos management (a) If asbestos is located on the project site, it shall be marked clearly as hazardous material (b) When possible the asbestos will be appropriately contained and sealed to minimize exposure (c) The asbestos prior to removal (if removal is necessary) will be treated with a wetting agent to minimize asbestos dust (d) Asbestos will be handled and disposed by skilled & experienced professionals (e) If asbestos material is being stored temporarily, the wastes should be securely enclosed 20 inside closed containments and marked appropriately. Security measures will be taken against unauthorized removal from the site. (f) The removed asbestos will not be reused Toxic / hazardous (a) Temporarily storage on site of all hazardous or toxic substances will be in safe containers waste management labeled with details of composition, properties and handling information (b) The containers of hazardous substances shall be placed in an leak-proof container to prevent spillage and leaching (c) The wastes shall be transported by specially licensed carriers and disposed in a licensed facility. (d) Paints with toxic ingredients or solvents or lead-based paints will not be used F. Affected forests, Protection (a) All recognized natural habitats, wetlands and protected areas in the immediate vicinity of the wetlands and/or activity will not be damaged or exploited, all staff will be strictly prohibited from hunting, protected areas foraging, logging or other damaging activities. (b) A survey and an inventory shall be made of large trees in the vicinity of the construction activity, large trees shall be marked and cordoned off with fencing, their root system protected, and any damage to the trees avoided (c) Adjacent wetlands and streams shall be protected from construction site run-off with appropriate erosion and sediment control feature to include by not limited to hay bales and silt fences (d) There will be no unlicensed borrow pits, quarries or waste dumps in adjacent areas, especially not in protected areas. G. Disposal of medical Infrastructure for (a) In compliance with national regulations the contractor will insure that newly constructed waste medical waste and/or rehabilitated health care facilities include sufficient infrastructure for medical waste management handling and disposal; this includes and not limited to:  Special facilities for segregated healthcare waste (including soiled instruments “sharps”, and human tissue or fluids) from other waste disposal; and  Appropriate storage facilities for medical waste are in place; and  If the activity includes facility-based treatment, appropriate disposal options are in place and operational H Traffic and Direct or indirect (a) In compliance with national regulations the contractor will insure that the construction site is Pedestrian Safety hazards to public traffic properly secured and construction related traffic regulated. This includes but is not limited and pedestrians by to construction  Signposting, warning signs, barriers and traffic diversions: site will be clearly visible and activities the public warned of all potential hazards  Traffic management system and staff training, especially for site access and near-site 21 heavy traffic. Provision of safe passages and crossings for pedestrians where construction traffic interferes.  Adjustment of working hours to local traffic patterns, e.g. avoiding major transport activities during rush hours or times of livestock movement  Active traffic management by trained and visible staff at the site, if required for safe and convenient passage for the public.  Ensuring safe and continuous access to office facilities, shops and residences during renovation activities, if the buildings stay open for the public. 22 PART D: MONITORING PLAN What Where How When Why Who Activity (Is the (Is the (Is the (Define the (Is the (Is responsible parameter to be parameter to be parameter to be frequency / or parameter being for monitored?) monitored?) monitored?) continuous?) monitored?) monitoring?) 1. Type of activity 2. Type of activity 3. Type of activity ….. 23 Attachment 4 Field Environmental Monitoring Checklist Site location Name of contractor Name of supervisor Date of site visit Status of civil works Status Documents and activities to be examined Comments Yes Partially No N/A Contractor holds license for extraction of natural resources Contractor holds permit for operating concrete/asphalt plant Contractor holds agreement for final disposal of waste Contractor holds agreement with service provider for removal of household waste from site Work site is fenced and warning signs installed Works do not impede pedestrian access and motor traffic, or temporary alternative access is provided Working hours are observed Construction machinery and equipment is in standard technical condition (no excessive exhaust and noise, no leakage of fuels and lubricants) Construction materials and waste are transported under the covered hood Construction site is watered in case of excessively dusty works Contractor’s camp or work base is fenced; sites for temporary storage of waste and for vehicle/equipment servicing are designated 24 Contractor’s camp is supplied with water and sanitation is provided Contractor’s camp or work base is equipped with first medical aid and firefighting kits Workers wear uniforms and protective gear adequate for technological processes (gloves, helmets, respirators, eye- glasses, etc.) Servicing and fuelling of vehicles and machinery is undertaken on an impermeable surface in a confined space which can contain operational and emergency spills Vehicles and machinery are washed away from natural water bodies in the way preventing direct discharge of runoff into the water bodies Construction waste is being disposed exclusively in the designated locations Extraction of natural construction material takes place strictly under conditions specified in the license Excess material and topsoil generated from soil excavation are stored separately and used for backfilling / site reinstatement as required Works taken on hold if chance find encountered and communication made to the State agencies responsible for cultural heritage preservation Upon completion of physical activity on site, the site and contractor’s camp/base cleared of any remaining left-over from works and harmonized with surrounding landscape 25 Attachment 5 Minutes of Stakeholders’ Meeting in Kutaisi Public Consultation Meeting Minutes Environmental Management Framework Resettlement Policy Framework In order to discuss the Environmental and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF) prepared for the Empowering Poor Communities and Micro- Entrepreneurs in the Georgia Tourism Sector Project, stakeholder meeting was held in the Civic Engagement Centre of Kutaisi, Imereti on 17th June, 2014. Population of the region was informed about the public hearing in advance through the announcements posted on the information boards of Gamgeoba building. Also, the documentation was sent by e-mail to the project-affected municipalities. At the meeting were discussed the environmental and resettlement legal reqirements of Georgia and safeguard policies of the World Bank. The structure, contents, legal background and reqirements of the ESMF and RPF which are the part of the Operations Manual of Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector Project. Those present: Name Organization Mariam Jorjadze Elkana, Director Tamaz Dundua Elkana, Program Manager Alexander Bagdadze Elkana, Imereti Representative based in Kutaisi Public Consultation was attended by attorneys of the territorial entities of the municipalities of Imereti region and representatives of local population (see annexed photos). List of attendees (interested population) is attached below: 26 Kutaisi, the Centre for Civic Engagement, 17.06.14 27 During the meeting:  Brief description of Project and sub-projects under Empowering Poor Communities and Micro- Entrepreneurs in the Georgia Tourism Sector Project (presentation in Georgian attached)  Introduction to the Resettlement Policy Framework (RPF)  Policy, Legal and Administrative Framework  The World Bank Policy, Safeguards and Georgian Legislation  Principles of Resettlement and Land Acquisition Adopted for the Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector Project  Eligibility and Entitlements  Implementation  Agreements  Grievance Redress Mechanism  Outline of a Resettlement Action Plan  Introduction to the Environmental Management Framework  Environmental Compliance of the Project  Subproject Screening and Approval  Environmental Review and Environmental Management Planning  Public Consultation  Environmental Liabilities of Elkana Contractors  Environmental Monitoring  Reporting  Involvement of population in consultation processes. The presentation was folowed by debates. the Q&A session held by the Elkana staff is given in the below table. Question/Comment Response When will the project The project has not been started yet. It is expected that the implementation start? agreement will be signed by September 2014. In this case the first works will start in the beginning of 2015. Will the local population be The Project development objective is to generate employment employed? and increase household incomes for poor and vulnerable communities in the Kakheti and Imereti regions by supporting them to (i) start/grow micro, small, and medium-sized enterprises in the tourism sector and (ii) implement small works in the vicinity of cultural heritage sites. Therefore the project will support only those sub-projects that are focused on local communities and local employment. 28 Who are project direct The main beneficiaries are poor and vulnerable communities beneficiaries? and individuals in the Kakheti and Imereti regions of Georgia, including IDPs. There will be an emphasis on targeting women. Beneficiaries include local entrepreneurs interested in starting a business, home-based enterprises, women-managed enterprises which traditionally employ large groups of women in areas relevant to tourism (such as hand-crafts, guest-houses, cafes/restaurants, and souvenir shops), and organic food processing businesses. Other members of the local community will have a chance to participate in community- driven small works initiatives around cultural heritage sites. The project will provide complementary activities to the Regional Development Project (RDP) and RDP II that will galvanize the impact of the expanding tourism sector for the poorest and most vulnerable, and increase local community ownership of tourism development. What type of grants will be Matching grants will be provided in the average amount of offered and on what US$ 2,000 to eligible beneficiaries to start or expand their conditions? businesses/enterprises. The matching grant will be utilized to support the production of goods and services related to cultural heritage for micro-entrepreneurs currently not targeted by the RDPs. This may include agro-processed foods, guiding services, handcrafts, performing arts, and other cultural industries. The grant will cover activities such as equipment, services, product promotion, and the acquisition of technical and market information. The details of the sub-grants will be provided before the grant call is announced. It is planned that the grant facility will be accessible on a repeat basis for scaling-up the initial enterprise based on the performance of the first grant (including number of people employed by the enterprise). Beneficiaries receiving funds to expand their operations will be required to hire at least one person who will benefit from their business and thus provide employment opportunities (it is expected that on average, the supported micro-enterprises will contain 3-4 employees). Selected beneficiaries can get support (maximum 50% of the estimated costs of their planned productive investment) for upgrade or purchase of technical equipment (e.g. pasteurization device, wine bottling equipment, fat measuring device, sewing machines, etc.) or building material. The beneficiaries’ contribution will cover rehabilitation of properties/work space and be at least 50% of the needed sum. Transparent eligibility criteria and selection processes will be developed and adopted on the basis of the market and gender assessments and public consultations. In addition, community driven initiatives will be supported for the improvement of cultural heritage sites and access. The grant facility will fund community driven initiatives that engage neighborhood groups in protecting their own heritage through maintenance initiatives such as cleaning, access to sites, signage and interpretation, under the stewardship of the 29 NCHPA. Those activities will be small scale initiatives not currently financed under RDP and RDP II. The grantees will be required to contribute up to 20% of project costs in cash or in kind. The size of the grant supporting the community driven initiatives shall not exceed USD 60,000. Are regional CBOs eligible In the sub-grant component for community driven initiatives for grants? local CBOs are eligible for grants. If an affected person is No land acquisition will take place within the project. There against receiving the might be only the cases of temporary loss of incomes due to compensation stipulated in the community or MSME investments that might cause the Resettlement Action Plan, disruption in livelihoods. Resettlement impacts would mainly how will the property be relate to temporary relocation and/or loss of income or purchased and reimbursed in productive assets due to implemented MSME and community this case? sub-projects. Is it already determined The project carries investment components in support to according to the infrastructure development and therefore triggers OP/BP 4.01 environmental policy of the Environmental Assessment. Based on the principles of the WB to which environmental OP/BP 4.01, most of the expected investment subprojects fall category do the sub-projects under environmental Category B, while some may be belong? environmental Category C. The entire project is ranked as environmental Category B. All subprojects will require examination of environmental and social risks and risks to the cultural/historic heritage. Based on the outcome of risk assessment and classification of subprojects, subproject- specific sets of risk mitigation measures will be developed and environmental and social monitoring of works will be planned. 30 Attached: Photos of the meeting Meeting in Kutaisi, the Centre for Civic Engagement, 17.06.2014 31 Attachment 6 Minutes of Stakeholders’ Meeting in Telavi Public Consultation Meeting Minutes Environmental Management Framework Resettlement Policy Framework In order to discuss the Environmental and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF) prepared for the Empowering Poor Communities and Micro- Entrepreneurs in the Georgia Tourism Sector Project, stakeholder meeting was in the Centre for Civic Engagement of Telavi, Kakheti on 19th June, 2014. Population of the region was informed about the public hearing in advance through the announcements posted on the information boards of Gamgeoba building. Also, the documentation was sent by e-mail to the project-affected municipalities and distributed through Caucasian Environmental NGO Network (see attached). At the meeting were discussed the environmental and resettlement legal reqirements of Georgia and safeguard policies of the World Bank. The structure, contents, legal background and reqirements of the ESMF and RPF which are the part of the Operations Manual of Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector Project. Those present: Name Organization Mariam Jorjadze Elkana, Director Gia Rukhadze Elkana, Administration Officer Public Consultation was attended by attorneys of the territorial entities of the municipalities of Imereti region and representatives of local population (see the photos blow). List of attendees (interested population) is attached below: 32 Telavi, the Centre for Civic Engagement, 19.06.14 33 The following main topics were presneted during the meeting:  Brief description of Project and sub-projects under Empowering Poor Communities and Micro- Entrepreneurs in the Georgia Tourism Sector Project  Introduction to the Resettlement Policy Framework (RPF)  Policy, Legal and Administrative Framework  The World Bank Policy, Safeguards and Georgian Legislation  Principles of Resettlement and Land Acquisition Adopted for the Empowering Poor Communities and Micro-Entrepreneurs in the Georgia Tourism Sector Project  Eligibility and Entitlements  Implementation  Agreements  Grievance Redress Mechanism  Outline of a Resettlement Action Plan  Introduction to the Environmental Management Framework  Environmental Compliance of the Project  Subproject Screening and Approval  Environmental Review and Environmental Management Planning  Public Consultation  Environmental Liabilities of Elkana Contractors  Environmental Monitoring  Reporting  Involvement of population in consultation processes. The presentation was folowed by debates. the Q&A session held by the Elkana staff is given in the below table. Question/Comment Response When will the project The project has not been started yet. It is expected that the implementation start? agreement will be signed by September 2014. In this case the first works will start in the beginning of 2015. Who are project direct The main beneficiaries are poor and vulnerable communities and beneficiaries? individuals in the Kakheti and Imereti regions of Georgia, including IDPs. There will be an emphasis on targeting women. Beneficiaries include local entrepreneurs interested in starting a business, home-based enterprises, women-managed enterprises which traditionally employ large groups of women in areas relevant to tourism (such as hand-crafts, guest-houses, cafes/restaurants, and souvenir shops), and organic food processing businesses. Other members of the local community will have a chance to participate in community-driven small 34 works initiatives around cultural heritage sites. The project will provide complementary activities to the Regional Development Project (RDP) and RDP II that will galvanize the impact of the expanding tourism sector for the poorest and most vulnerable, and increase local community ownership of tourism development. What type of grants will be Matching grants will be provided in the average amount of US$ offered and on what 2,000 to eligible beneficiaries to start or expand their conditions? businesses/enterprises. The matching grant will be utilized to support the production of goods and services related to cultural heritage for micro-entrepreneurs currently not targeted by the RDPs. This may include agro-processed foods, guiding services, handcrafts, performing arts, and other cultural industries. The grant will cover activities such as equipment, services, product promotion, and the acquisition of technical and market information. The details of the sub-grants will be provided before the grant call is announced. It is planned that the grant facility will be accessible on a repeat basis for scaling-up the initial enterprise based on the performance of the first grant (including number of people employed by the enterprise). Beneficiaries receiving funds to expand their operations will be required to hire at least one person who will benefit from their business and thus provide employment opportunities (it is expected that on average, the supported micro-enterprises will contain 3-4 employees). Selected beneficiaries can get support (maximum 50% of the estimated costs of their planned productive investment) for upgrade or purchase of technical equipment (e.g. pasteurization device, wine bottling equipment, fat measuring device, sewing machines, etc.) or building material. The beneficiaries’ contribution will cover rehabilitation of properties/work space and be at least 50% of the needed sum. Transparent eligibility criteria and selection processes will be developed and adopted on the basis of the market and gender assessments and public consultations. In addition, community driven initiatives will be supported for the improvement of cultural heritage sites and access. The grant facility will fund community driven initiatives that engage neighborhood groups in protecting their own heritage through maintenance initiatives such as cleaning, access to sites, signage and interpretation, under the stewardship of the NCHPA. Those activities will be small scale initiatives not currently financed under RDP and RDP II. The grantees will be required to contribute up to 20% of project costs in cash or in kind. The size of the grant supporting the community driven initiatives shall not exceed USD 60,000. Are regional CBOs eligible for In the sub-grant component for community driven initiatives local grants? CBOs are eligible for grants. Does the project consider The project will start with Market and Gender assessments. This gender aspects? component will be carried out with the objective of better understanding MSMEs and vulnerable groups’ role, including women, in the local economy. It is planned to provide Gender- sensitive training for the targeted beneficiaries. In addition the 35 project will consider different demands and expectations of male and female beneficiaries as part of the beneficiary feedback mechanisms. Are women/female groups There will be an emphasis on targeting women, beneficiaries specifically targeted by the include local entrepreneurs interested in starting a business, project? home-based enterprises, women-managed enterprises which traditionally employ large groups of women in areas relevant to tourism (such as hand-crafts, guest-houses, cafes/restaurants, and souvenir shops), and organic food processing businesses. In terms of participation, the project will ensure that women are adequately represented in the consultations and in the working groups supervising the project implementation. If an affected person is against No land acquisition will take place within the project. There receiving the compensation might be only the cases of temporary loss of incomes due to the stipulated in the Resettlement community or MSME investments that might cause disruption in Action Plan, how will the livelihoods. Resettlement impacts would mainly relate to property be purchased and temporary relocation and/or loss of income or productive assets reimbursed in this case? due to implemented MSME and community sub-projects. Is it already determined The project carries investment components in support to according to the environmental infrastructure development and therefore triggers OP/BP 4.01 policy of the WB to which Environmental Assessment. Based on the principles of the OP/BP environmental category do the 4.01, most of the expected investment subprojects fall under sub-projects belong? environmental Category B, while some may be environmental Category C. The entire project is ranked as environmental Category B. All subprojects will require examination of environmental and social risks and risks to the cultural/historic heritage. Based on the outcome of risk assessment and classification of subprojects, subproject-specific sets of risk mitigation measures will be developed and environmental and social monitoring of works will be planned. By the end of the meeting a local media group took interviews and posted the information on KakhetiNews webpage: http://www.kakhetinews.ge/ge/voice-of-kakheti/news/biologiur-mecnierebata-asociaciam-elkana-telavsi- sexvedra-gamarta-video 36 Attached: Photos of the meeting Meeting in Telavi, the Centre for Civic Engagement, 19.06.14 37 Attached: Project Information distributed through CENN network 38 Attachment 6 Project Presentation document for Stakeholders’ Meetings in Kutaisi and Telavi 39 40