The World Bank Angola Social Safety Nets (P169779) Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 05/22/2019 | Report No: ESRSA00184 May 23, 2019 Page 1 of 10 The World Bank Angola Social Safety Nets (P169779) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Angola AFRICA P169779 Project Name Angola Social Safety Nets Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Social Protection & Jobs Investment Project 5/20/2019 6/27/2019 Financing Borrower(s) Implementing Agency(ies) Ministerio das Financas Ministerio da Accão Social, Familia e Promocão da Mulher, Fundo de Apoio Social Public Disclosure Proposed Development Objective(s) The objectives of the project are to provide temporary income support to poor households in selected areas of the Angolan territory, and strengthen delivery mechanisms for a permanent social safety net system. Financing (in USD Million) Amount Total Project Cost 320.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] Angola is developing a new model of growth as the current one, based on oil wealth, has reached its limits in delivering poverty reduction and shared prosperity. One of the main challenges facing the country in developing this more inclusive growth model is to protect the poor and vulnerable while supporting economic diversification. The government has started to reform the social contract by shifting away from universal subsidies towards a poverty- targeted safety net system. To achieve these objectives, the project would support three components: Component 1: Cash transfer program to poor households (US$ 260 million). This component would support the design and May 23, 2019 Page 2 of 10 The World Bank Angola Social Safety Nets (P169779) implementation of the systems that would enable temporary cash transfers to households in the bottom 40% to mitigate the impacts of the subsidy reform. The program would seek to reach one million households in 40 municipalities which concentrate the urban poor. 1.A. Key permanent delivery systems to implement social safety nets (US$ 15 million). The delivery systems would include a management information system with the following modules: registry, beneficiary targeting, payment, monitoring and evaluation, and grievance redress mechanisms. 1.B. Cash transfers (US$ 245 million). Monthly transfers of Kz. 5,000.00 (approx. US$ 15.00) would last for twelve months. Component 2: Development of an effective safety net (SSN) system (US$ 50 million). This component would strengthen the capacity of MASFAMU, FAS and partner institutions to set-up a safety net system at the central, provincial and municipal level. It would support the on-going decentralization of social assistance. 2.A. Communication strategy about the subsidy reform and the safety net programs (US$ 5 million): 2.B. Complementary interventions supporting investments in productive inclusion (US$ 20 million) and human capital (US$ 25 million) at municipal level Component 3: Project management (US$ 10 million). The project will be implemented by the Ministry of Social Action, Family and Promotion of Women and the Social Support Fund. A Project Implementation Support Unit, housed in the Social Support Fund, will be responsible for the implementation of specific activities and liaison with participating municipalities. A multi-sectoral committee led by the President's Secretary for Economic Affairs and including representatives from the Ministry of Finance, Ministry of Economy and Planning, the Ministry of Social Action, Family and Promotion of Women and the Social Support Fund will provide overall guidance to the project. D. Environmental and Social Overview D.1. Project location(s) and salient characteristics relevant to the ES assessment [geographic, environmental, social] The objectives of the project are to strengthen the risk management capacity of poor households in selected areas, Public Disclosure including those affected by the subsidy reforms, and to strengthen the delivery mechanisms for the development of a permanent social safety net system during a five years period (2019-2023). The project will focus on poor and vulnerable households among the bottom 40 percent, in the municipalities that concentrate the largest number of urban poor households. Forty (40) municipalities in eighteen (18) provinces , with the highest number of urban poor, house approximately one million households in the two lowest quintiles. Overall, these one million cash transfer beneficiary households would be roughly equally distributed among rural and urban areas of these municipalities, which are geographically dispersed across the country. The focus on this group can be justified given the nature of products targeted by the subsidy reform: water, transport, electricity and fuel. The selection of this group also aligns with the Government’s National Development Plan 2018-22 axis about “Human Development and Social Welfare”. This group is also the target of the newly launched Unified Social Registry, which the project would strengthen. Following registration in the Unified Social registry and targeting, project beneficiaries will benefit from a temporary cash transfer (Component 1). The cash transfers seek to reach the 40 percent poorest in the selected municipalities, that would be the most affected by the subsidy reform. Targeting is based on poverty maps at the municipality-level and proxy-means test at the household level. Documented gender inequality in the country suggests that the marginal impact of the transfers would be higher if they reached women. It is estimated that a significant proportion of beneficiary households will be households with a single female adult earner (approximately 40 percent of households self-report as female-headed). The project complements existing and planned interventions, including the DPO series, the support to the decentralization and support to the water sector and health and education systems. The project will also aim for gender parity amongst beneficiaries (50% male and 50% female) and ensure the participation of female-headed households. A subset of the cash transfer program beneficiaries would be referred to existing productive inclusion activities (Component 2), in selected municipalities. In addition the project would support technical assistance to strengthen coordination in social sectors and provide grants to up to thirty (30) May 23, 2019 Page 3 of 10 The World Bank Angola Social Safety Nets (P169779) municipal Integrated Centers for Social Assistance (CASI) for activities such as providing incentives to bring drop-out children/youth back to school, prevent early marriage or teenage pregnancy, access mother and child and reproductive health services, and support to health fairs, victims of domestic violence, and social inclusion of teenagers and youth. D. 2. Borrower’s Institutional Capacity The project will be jointly implemented by the Ministry of Social Action, Family and Promotion of Women (MASFAMU) and the Social Action Fund (FAS), a semi-autonomous agency under the jurisdiction of the Ministry of Territorial Administration (MAT). MASFAMU’s mandate is to design, coordinate and implement social policies and programs for the most vulnerable population groups, to fight poverty, defend and strengthen family welfare, the promotion of women, community development and guarantee women’s rights in terms of gender equality and equity while FAS supports and contributes to the promotion of sustainable participative development among the poorest or vulnerable populations, through poverty alleviation and economic stabilization programs. FAS and MASFAMU already collaborate on the implementation of safety net programs. It is expected that FAS manages Components 1 and 2 A while MASFAMU would focus on Component 2B. Given the expanded scope of the Environmental and Social Framework (ESF) and the client’s unfamiliarity with the ESF, overall the Borrower’s institutional capacity to implement the project under the ESF may be considered weak even though FAS is already implementing a Bank-financed project. Capacity gaps/ strengthening measures linked to the implementation of the Environmental and Social Standards are captured in the ESMF and Environmental and Social Commitment Plan (ESCP). The PIU will ensure that a full time Gender and Social Safeguards Specialist is hired during the early implementation period of the project to lead the implementation of the ESSs relevant for the project. The Social Specialist will be responsible for implementing the GBV/SEA risk mitigation measures and the operation of an effective GRM. Public Disclosure II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Environmental Risk Rating Moderate The environment risk rating is classified as Moderate. Adverse environmental risks and impacts related as a result of project activities are anticipated to be minimal or negligible because the project will include no civil works. Public health risks and impacts related to occupational health and safety (OHS) are expected related to support for productive inclusion activities, which may include activities in the agricultural sector, however these activities are assessed to be small in scale and impacts are expected to be managed through application of readily available mitigation measures. Social Risk Rating Moderate The social risk rating is classified as moderate. The main project activities will include household registration in the unified social registry, cash transfers, communication activities, each of which should be well defined, socially inclusive, and include beneficiaries’ consultations. On-demand registration in selected areas will be accompanied with a strong operational communication (Component 2B) and the implementation of an effective grievance redress mechanism at the community-level to address potential issues as close to the source as possible. Cash transfers have proven effective in mitigating the potential poverty impacts of subsidy reforms on the poor, especially in urban areas. Social risks could include some local conflict over the cash transfer process and productive inclusion activities (for example between eligible and ineligible people or within families), Gender-based Violence (GBV)/Sexual Exploitation May 23, 2019 Page 4 of 10 The World Bank Angola Social Safety Nets (P169779) and Abuse (SEA) risks that are already contextual and could be exacerbated by the project, and cultural issues arising from implementing the program in IP/SSAHUTLC communities. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: Project activities include unconditional cash transfers, and referral of a subset of households to complementary interventions including providing skills and grants to poorer household members, to promote self-employment and entrepreneurship, increase local productivity and enhance linkages with other existing Government initiatives. Based on the outcome of project identification meetings with the Implementing Agency and Bank review of the performance of the on-going implementation similar activities by FAS, the potential for indirect environmental impacts to cash transfers beneficiaries have been identified. In addition, while the overall social benefits are expected to be positive, identified social risks and impacts are related to gender inequality, social inclusion, sexual exploitation and abuse (SEA), gender-based violence (GBVIP/SSAHUTLCs, and legacy issues relating to heightened vulnerability status of beneficiaries who may have previously been subject to forcible relocation due to the war. Since beneficiaries are located in the municipalities which hold the highest number of urban poor, they may be in peri- urban and rural areas of the municipalities and productive inclusion activities may include small agricultural activities. The project has prepared an Environmental and Social Management Framework (ESMF) that provides general environmental and social baseline information relevant to the project; assessed anticipated E&S risks and impacts Public Disclosure based on subproject typologies; described how subprojects will be reviewed and screened, including the type and timing of any subproject E&S assessment instruments; and detailed the institutional arrangements for E&S assessment, management, supervision and reporting. The ESMF addresses potential direct and indirect environmental impacts, as well as social risks and impacts such as social inclusion, resource competition/inter and intra-household conflict, and any relevant legacy issues. SEA and GBV risks will be managed through measures included in the ESMF. A Vulnerable Groups Policy Framework (VGPF) has been prepared to address engagement with Vulnerable Groups that meet the requirements of ESS 7. Social risks expected to be avoided or mitigated through project design include support for specific outreach activities to ensure female-headed households can access registration points and encourage the issuance of beneficiary ATM cards to one woman or the main couple in households. Encouraging the issuance of ATM cards will also avoid potential risks related to use of security personnel for distribution of cash benefits. ESS10 Stakeholder Engagement and Information Disclosure The project has prepared a Stakeholder Engagement Plan (SEP) to ensure early, continuous and inclusive stakeholder engagement (including vulnerable/disadvantaged groups). The SEP supports external and internal communication campaigns to explain program processes and rules and will support the implementation of a grievance redress mechanism to address questions from beneficiaries and non-beneficiaries and resolve any potential conflicts linked to the exclusion of some households from transfers. The beneficiaries of the project will be households which are among the 40 percent poorest. It is expected that 40% of them will be female-headed households and they will be split roughly equally between urban and rural areas of the targeted municipalities. This category of households may be difficult to reach, as they live in informal settlements which poses identification problems. The neighborhood May 23, 2019 Page 5 of 10 The World Bank Angola Social Safety Nets (P169779) commissions (Comissões de Bairro) will provide key relays to enhance outreach. Other key stakeholders include IP/SSAHUTLCs and other vulnerable groups (such as the elderly, youth and disabled). In addition, the government has recently emphasized the importance of enhancing transparency in beneficiary selection. The strengthening of the Social Registry can greatly enhance the targeting of social safety nets. This registry will provide a cross-cutting tool, with key data on vulnerable households and individuals (age, level of education, occupation etc.) and will be used assist the government in optimizing targeting and enhancing transparency for beneficiary selection in social programs. Application of ESS10 stakeholder engagement and disclosure of information is a central part of the Angola Social Safety Nets that will be closely monitored through the SEP. It will also be complementing ESS7 through continuous culturally-sensitive and inclusive consultations. The SEP will outline the characteristics and interests of the relevant stakeholder groups and timing and methods of engagement throughout the life of the project. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions The PIU will include direct workers, contract workers and civil servants, with support from consultants to provide technical assistance on specific tasks. Angola’s labor law includes measures compatible with the requirements of ESS 2, including: work and terms of employment; hiring based on the principle of equal opportunities and fair treatment; non-discrimination with respect to any aspects of the employment relationship, such as recruitment and hiring; compensation (including wages and benefits); access to training; assignment of duties, promotion, termination of employment contract or retirement, and disciplinary measures. There are also adequate protection and assistance Public Disclosure measures to deal with the vulnerabilities of project workers, including specific groups of workers, such as women, disabled persons, and migrant workers. The project does not engage child or forced labor. Productive inclusion grants will support activities that are currently under implementation by beneficiaries, which may have low OHS risks. The Labor Management Procedure (LMP) addresses OHS for project workers and requirements for ensuring OHS plans are prepared and implemented to ensure that specific provisions to address workers’ health and safety related issues are provided in the ESCP. The OHS plans are based on practical guidelines to include procedures for the use of adequate personal protective equipment. The project includes a labor GRM, based on Angolan labor law. ESS3 Resource Efficiency and Pollution Prevention and Management Risks and impacts related to resource efficiency and pollution prevention and management are expected to be negligible. The cash transfers are not assessed in the ESMF to have any direct or indirect adverse environmental impacts. Productive inclusion grants may go to small businesses with minor risks and impacts related to pollution. However, any use of proceeds for the productive inclusion grants for construction or any activity that is anticipated to result in significant adverse environmental risks and impacts will be screened out through the Environmental and Social Screening Checklist (ESSC) as part of the ESMF. Any recourse to the use of pesticides through productive inclusion activities related to the agriculture sector will not supported under the project. In addition, the project is not expected to include significant use of water or impacts on water quality or expected to produce significant greenhouse gas emissions. ESS4 Community Health and Safety May 23, 2019 Page 6 of 10 The World Bank Angola Social Safety Nets (P169779) The main risks identified at this stage include increases in GBV around the receipt of cash transfers by a woman (within households or at payment points), and SEA risks linked to sexual favors for registration. The GBV measures in the ESMF are aimed at minimizing the risks of gender-based violence, intra-household violence and sexual abuse and exploitation, and they include outreach to local communities and codes of conduct, where necessary. The project will ensure that payment points and productive inclusion activities apply the principles of universal access. Use of security personnel will be avoided through encouraging the issuance of ATM cards for distribution of cash benefits. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement The project is not expected to involve land acquisition leading to economic or physical displacement. No productive inclusion activity will be approved if they would require involuntary displacement or resettlement or if there is a grievance about land that is currently being filed or is unresolved. Should there be a situation where land acquisition results in economic or physical displacement, then the project will prepare, consult upon and disclose RAPs/ARAPs. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources This ESS is not expected to be relevant as the Project will not finance any activities that involve direct, indirect or cumulative risks and impacts related to habitats biodiversity conservation, and sustainable management of living natural resources. Adverse risks and impacts related to ESS6 will be screened out through the ESSC. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities Public Disclosure The project will be implemented throughout Angola and with the objective to reach the poorest 40 percent households. IP/SSAHUTLCs, such as the San, a minority indigenous group with a population scattered in the provinces of Huila, Cunene, Namibe, and Kuando Kubango, may be registered and eligible for the cash transfers and productive inclusion activities. The project will also screen for other groups that may meet the requirements of ESS 7. Special arrangements will be developed and integrated into the Operational Manual and Vulnerable Groups Planning Framework (VGPF) for the project to engage with and assist such Vulnerable Groups populations through culturally appropriate methods and experienced organizations. It is presumed that the cash transfers targeted to indigenous households would have positive impacts given their greater poverty levels. The VGPF includes an initial socio-cultural assessment to better understand the Vulnerable Groups and provide guidance on their inclusion in the project. The project grievance redress mechanism will be culturally appropriate and accessible to these groups. Once the presence of IP/SSAHUTLCs is confirmed in the project area (based on the social assessment), Vulnerable Groups Plans will be prepared, consulted upon, cleared by the Bank and disclosed. ESS8 Cultural Heritage This ESS is not expected to be relevant as the project is not expected to finance cash transfer that have direct or indirect environmental and social risks or impacts on tangible or intangible cultural heritage. ESS9 Financial Intermediaries This ESS is not relevant since the project activities will not involve any financial intermediaries. May 23, 2019 Page 7 of 10 The World Bank Angola Social Safety Nets (P169779) B.3 Other Relevant Project Risks In the context of the subsidy reform, the project will support key interventions such as communication to garner support for the reform and cash transfers to mitigate the potential negative impacts of price increases on the poor. However, the reform is expected to mostly affect richer households and key economic sectors such as energy and transport. In a context where the government has little fiscal space to maneuver, political instability and civil unrest may follow the actual removal of subsidies, which would contribute to the contextual risk of the project. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No III. BORROWER’S ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) DELIVERABLES against MEASURES AND ACTIONs IDENTIFIED TIMELINE ESS 1 Assessment and Management of Environmental and Social Risks and Impacts Public Disclosure ENVIRONMENTAL AND SOCIAL ASSESSMENT: The Government will develop and implement the 06/2019 Environmental and Social Management Framework (ESMF). ESS 10 Stakeholder Engagement and Information Disclosure STAKEHODER ENGAGEMENT: The government will finalize and implement the Stakeholder Engagement 06/2019 Plan (SEP). ESS 2 Labor and Working Conditions OCCUPATIONAL HEALTH AND SAFETY: The Government will ensure that Municipalities develop and 12/2019 implement an Occupational Health and Safety (OHS) Plan. LABOR MANAGEMENT: The government will develop and implement the Labor Management Procedure 06/2019 (LMP) consistent with ESS2. ESS 3 Resource Efficiency and Pollution Prevention and Management ENVIRONMENTAL AND SOCIAL ASSESSMENT: The Government will develop and implement the Environmental and Social Management Framework (ESMF). ESS 4 Community Health and Safety May 23, 2019 Page 8 of 10 The World Bank Angola Social Safety Nets (P169779) GENDER BASED VIOLENCE/SEXUAL EXPLOITATION AND ABUSE: The government will develop and 06/2019 implement a GBV/SEA Action Plan. ESS 5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement ESS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ESS 7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities VULNERABLE GROUPS: The Government will finalize and implement a Vulnerable Groups Planning 06/2019 Framework (VGPF) consistent with the requirements of ESS 7. ESS 8 Cultural Heritage ESS 9 Financial Intermediaries Public Disclosure B.3. Reliance on Borrower’s policy, legal and institutional framework, relevant to the Project risks and impacts Is this project being prepared for use of Borrower Framework? No Areas where “Use of Borrower Framework” is being considered: The project does not propose to rely on the Borrower’s E&S Framework in whole or in part. IV. CONTACT POINTS World Bank Contact: Manuela Ravina da Silva Title: Jr Professional Officer Telephone No: 5220+33231 / Email: mravinadasilva@worldbank.org Contact: Nadia Henriqueta Gabriel Tembe Title: Consultant Bilale Telephone No: Email: ntembebilale@worldbank.org Contact: Santiago Estanislao Olmos Title: Consultant May 23, 2019 Page 9 of 10 The World Bank Angola Social Safety Nets (P169779) Telephone No: Email: solmos@worldbank.org Contact: Alexandra C. Bezeredi Title: Lead Social Development Specialist Telephone No: 458-5055 Email: abezeredi@worldbank.org Contact: Benjamin Burckhart Title: Senior Social Development Specialist Telephone No: 5330+8051 / Email: bburckhart@worldbank.org Contact: Brandon Enrique Carter Title: Senior Environmental Specialist Telephone No: 473-9858 Email: bcarter@worldbank.org Contact: Paulo Jorge Temba Sithoe Title: Environmental Specialist Telephone No: 5333+2330 / Email: psithoe@worldbank.org Borrower/Client/Recipient Borrower: Ministerio das Financas Implementing Agency(ies) Implementing Agency: Ministerio da Accão Social, Familia e Promocão da Mulher Public Disclosure Implementing Agency: Fundo de Apoio Social V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Benedicte Leroy De La Briere Safeguards Advisor ESSA Hanneke Van Tilburg (SAESSA) Concurred on 22-May-2019 at 20:32:33 May 23, 2019 Page 10 of 10