E4142

REPÚBLICA DE MOÇAMBIQUE

MINISTÉRIO DA PLANIFICAÇÃO E DESENVOLVIMENTO

DIRECÇÃO NACIONAL DE SERVIÇOS DE PLANEAMENTO

Mozambique Integrated Growth Poles Project

(P127303)

ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF)

Draft Final

Maputo, February2013

1

LIST OF ACRONYMS

ANENational Roads Administration

CBNRMCommunity-Based Natural Resource Management

DADistrict Administration

DCCDistrict Consultative Council

DNANational Directorate for Water

DNENational Directorate for Energy

DNPONational Directorate for Planning

DNAPOTNational Directorate for Land Planning

DNPANational Directorate for Environmental Promotion and Education

DPAProvincial Directorate of Agriculture

DPCAProvincial Directorate for the Coordination of Environmental Affairs

DPOPHProvincial Directorate of Public Works and Housing

EAEnvironmental Assessment

EDMElectricidade de Moçambique

EIAEnvironmental Impact Assessment

EMPEnvironmental Management Plan

ESIAEnvironmental and Social Impact Assessment

ESMFEnvironmental and Social Management Framework

ESMPEnvironmental and Social Management Plan

FAOFood and Agriculture Organization

FIPAGWater Supply Investment and Asset Management Fund

GAZEDASpecial Economic Zones Office

GDPGross Domestic Product

GOMGovernment of Mozambique

IDAInternational Development Association

IDCFInnovation and Demonstration Catalytic Fun

MAEMinistry of State Administration

MCAMillennium Challenge Account

MCCMillennium Challenge Corporation

MDPMunicipal Development Project

MICOA Ministry for the Coordination of Environmental Affairs

MINAGRI Ministry of Agriculture

MISAU Ministry of Health

MOFMinistry of Finance

MOPHMinistry of Public Works and Housing

MSMEMicro Small and Medium Enterprises

NCSDNational Commission for Sustainable Development

NEMP National Environmental Management Programme

NGONon-GovernmentalOrganization

PARPAAction Plan for the Reduction of Absolute Poverty

PCUProject Coordination Unit

PDDDistrict Development Plans (Plano Distrital de Desenvolvimento)

PDPFProvincial Directorate of Planning and Finance

PDUTDistrict Land Use Plan

PEPAEnvironmental Quality Standards of Mozambique Projects

PLPPProvincial level project personnel (with monitoring responsibilities)

PPUProvincial Project Unit

PRSPoverty Reduction Strategy

RAPResettlement Action Plan

RPFResettlement Policy Framework

SDAEDistrict Services of Economic Activities

SDMASDistrict Services of Women, Social Affairs and Health

SDPIDistrict Services of Planning and Infrastructure

ToRTerms of Reference

UCACoordination and Support Unit

UNDPUnited Nations Development Program

WBWorld Bank

WHOWorld Health Organization

ZVDAZambezi Valley Development Agency

1

ACKNOWLEDGEMENTS

The preparation of the ESMF comes under theIntegrated Growth Poles Project (Project),which is the World Bank (WB) support to the Government of Mozambique (GOM) strategy for inclusive and broad-based growth. The ESMF is meant to ensure that relevant World Bank Safeguards Policies and GOM environmental and social regulationsare strictly adhered to in the design and implementation of specific subprojects.

The author, Mario Souto, wishes to thank all those who offered their valuable time to provide all kinds of information and data including in-depth perspectives during interviews and discussions and those who shared documents prior to and during the preparation of this document.

Special words of appreciation and acknowledgement go to managers and technical staff of government institutions and public companies who are the main stakeholders of this Project. They were committed and worked tirelessly to ensure that they gave their outmost feedback such that issues and concerns were conveyed adequately during the long and fruitful discussions. Reference is made to institutions such as MICOA, MINAGRI, CFM, FIPAG, GAZEDA, ZVDA, Provincial and District Governments.

1

TABLE OF CONTENTS

LIST OF ACRONYMS

ACKNOWLEDGEMENTS

TABLE OF CONTENTS

EXECUTIVE SUMMARY

SUMÁRIO EXECUTIVO

1- INTRODUCTION

2 PROJECT DESCRIPTION

2.1 Project Development Objectives and Principles

2.2 Project Components

2.3 Anticipated sub-Project types under the Project

2.4 Sub-project activities ineligible for funding

3 PROJECT IMPLEMENTATION ARRANGEMENTS

3.1 Implementation by Component

4 DEVELOPMENT CONTEXT IN MOZAMBIQUE AND THE PROJECT AREA

4.1 General Country Development Context and Project Relevance

5 - PROJECT TARGETED AREAS

5.1 Location

5.2 Physical Environment

5.2.1 The Zambezi Valley (Tete, Manica, Zambezia and Sofala Provinces) and Angonia Growth Pole

5.2.2 Nacala Development Corridor (Niassa and Nampula provinces) and Nacala Growth Pole

5.3 Biological Environment

5.3.1 The Zambezi Valley (Tete, Manica, Zambezia and Sofala Provinces) and Angonia Growth Pole

5.3.2 Nacala Development Corridor (Niassa and Nampula Provinces) and Nacala Growth Pole

5.4 Socio-economic Situation

5.4.1 The Zambezi Valey (Tete, Manica, Zambezia and Sofala Provinces) and Angonia Growth Pole

5.4.2 Nacala Corridor (Tete, Niassa and Nampula Provinces) and Nacala Growth Pole

6- WORLD BANK SAFEGUARDS POLICIES

6.1 Environmental Assessment (OP/BP 4.01)

6.2 Pest Management (OP 4.09)

6.3 Involuntary Resettlement (OP/BP 4.12)

6.4 Natural Habitats (OP/BP 4.04)

6.5 Physical Cultural Resources (OP/BP 4.11)

7 LEGAL AND INSTITUTIONAL FRAMEWORK FOR ENVIRONMENTAL AND SOCIAL MANAGEMENT IN MOZAMBIQUE

7.1 Legal Framework

7.1.1 Adherence to International and Regional Conventions and Protocols

7.1.2 Approval of Domestic Policy and Legal Instruments

7.2 Institutional Framework

8 ENVIRONMENTAL AND SOCIAL CONCERNS OF TARGETED AREAS

9 POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS AND MITIGATION MEASURES

9.1 Potential adverse environmental and social impacts

9.2 Other potential adverse socio-economic impacts

9.3 Potential positive impacts

9.4 Measures to mitigate negative impacts

10 GUIDELINES FOR SUB-PROJECT SCREENING, PREPARATION, APPRAISAL, APPROVAL AND MONITORING

10.1 Screening of Project Activities and Sites

10.2 Assigning the Appropriate Environmental and Social Categories

10.3 Carrying out Environmental and Social Work

10.4 Environmental and Social Checklist:

10.5 Environmental and Social Impacts Assessment (ESIA)

10.6 Subproject Review and Approval

10.7 Participatory Public Consultation and Disclosure

10.8 Annual Monitoring Reports and review

10.9 Environmental and Social Audit

10.10 Other Important Issues

10.10.1 Integration and harmonization with the district land use plans

11 GUIDELINES FOR ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN AND MONITORING REQUIREMENTS

11.1 Environmental and Social Management Plan (ESMP)

11.2 Pest Management Plan

11.3 Involuntary Resettlement (Resettlement Action Plan)

12 TRAINING AND CAPACITY BUILDING REQUIREMENTS

12.1 Institutional Capacity Assessment and Analysis

12.2 Proposed Training and Awareness Programs

12.3. Technical Assistance (TA)

13 ESMF MONITORING REQUIREMENTS

14 PROPOSED ESTIMATED IMPLEMENTATION BUDGET.

References

List of Figures

Figure 1: Overview of the Project Area (Zambezi Valley and Nacala Corridor)

Figure 2: The main development corridors in Mozambique

Figure 3: The Districts of the Zambezi Valley

Figure 4: The Project districts in Nacala Corridor

Figure 5: Angonia growth pole

Figure 6: Nacala growth pole

Figure 7: Various water uses in the Zambezi Valley (Shire River)

Figure 8: Men and women selling maize in the informal markets of Tete City

Figure 9: Land use planning session in Morrumbala District (Zambezia Province)

List of Tables

Table 1: Population of the Zambezi Valley by districts

Table 2: Population of Nacala Corridor by districts

Table 3: Safeguard Policies Triggered by the Project

Table 4: Measures to mitigate negative impacts

Table 5: Estimated budget for ESMF implementation

List of Annexes

Annex 1: Status Quo of Preparation of District Land Use Plans in the Project Area (provinces)

Annex 2: Environmental and Social Screening Form for subprojects

Annex 3: Preliminary Environmental Information Sheet

Annex 4: Checklist for environmental and social impacts

Annex 5: Environmental and Social Clauses

Annex 6: Summary of Main Issues from the Public Participation/Consultation Process

Annex 7: Good Agricultural Practices - Hygiene and Safety

Annex 8: List and Contacts of People Consulted

Annex 9: Terms of Reference for the Formulation of the ESMF, PMP and RPF

1

EXECUTIVE SUMMARY

Introduction

The ESMF outlines a number of principles and prerogatives to be adhered to by the Government of Mozambique in the implementation of the Integrated Growth Poles Project (Project), through which the World Bank (WB) will support the Government of Mozambique (GOM) strategy for inclusive and broad-based growth.

The focus of the support will be on the two main pillars of the Government’s Plano de Acção de Redução da Pobreza (PARP, 2011-14) (i) increasing agricultural production/productivity; and (ii) employment through targeted interventions to strengthen the dynamism of the private sector to drive economic growth and accelerate job creation.

The project will be implemented in the (i) Zambeze Valley; (ii) Nacala Corridor, which due to a combination of factors are witnessing unprecedented growth fueled largely by mining (mainly coal) operations in Moatize (Tete province). Initial focus will be on two carefully selected growth poles, namely Angonia (comprising the districts of Angonia, Tsangano and Macanga districts in Tete province) and Nacala (Nacala Porto and Nacala-a-Velha city and town, respectively).

Figure 1: Overview of the Project Area (Zambezi Valley and Nacala Corridor)

In permanent and close consultation with the GOM the World Bank will ensure that the strategic interest of inclusion, diversification, creation of employment and income generating opportunities are created around the mega projects in the project area. Priority infrastructure will be identified, planned and built and training, capacity building and demonstration activities will be carried out. This will be complemented by the strengthening of the enabling environment as well as the adoption of adequate measures for intervention monitoring and evaluation.

Project Components

The project will have four main components with the following preliminary allocation of funds:

Component 1: Support for the Tete agribusiness growth pole in the Zambezi Valley (US$ 39.0 million): The objective of this component is to provide integrated support for the upgrading of targeted local infrastructure and privately-executed public investments primarily oriented towards increasing smallholder production, linking smallholder farms and MSMEs to emerging supply chains, and increasing agro-processing activities in the Zambezi Valley. The local infrastructure investments will focus on the districts of Angonia, Tsangano, and Macanga in Tete Province to upgrade two key rural roads linking agricultural areas to primary roads that will provide producers all weather access to markets. This component is subdivided into two subcomponents, namely: Sub-component 1A: Upgrading of local infrastructure (US$ 21.5 million) that will consist of the (A) Rehabilitation of Market Access Roads, and (B) Minor civil and ancillary works.Sub-component 1B: Innovation and Demonstration Catalytic Fund (IDCF) investments in the Zambezi Valley (IDA allocation: US$17.5 million, Total: US$35.0 million) to improve the ability of smallholder farms/MSMEs in the Zambezi Valley to access markets through market-oriented private and complementary public investments.

Component 2: Support for the Nacala Special Economic Zone (SEZ) in the Nacala Corridor (US$ 43.0 million):The objective of this component is to provide support for the development of the Nacala Corridor. Activities are focused on (a) upgrading last-mile infrastructure for the development of the Nacala SEZ (water supply system and an access road), and (b) supporting privately-executed public investments to increase smallholder production, link smallholder farms to emerging supply chains, and increase agro-processing activities. This components is also subdivided into two subcomponents: Sub-component 2A: Upgrading of Nacala SEZ physical infrastructure (US$ 30.5 million) and Sub-component 2B: Innovation and Demonstration Catalytic Fund (IDCF) investments in the Nacala Corridor (IDA allocation US$12.5 million, Total: US$25.0 million), with similar objectives and modality as those expressed for Sub-component 1B.

Component 3: Institutional Development and Capacity Building (US$10.0 million): The objective of this component is to provide multi-year support to key public agencies to strengthen their capacity to plan, coordinate and implement public and multilateral investment programs. At the National level the focus will be on building capacity of the newly established Department of Public Investments within MPD. At the Provincial level the capacity building activities will focus on ZVDA and GAZEDA with some support for the Provincial and Municipal authorities. The component will finance (i) Training, equipment and consultancies for planning, coordination and implementation of public investment programs, (ii) training, equipment and consultancies for the ZVDA and related public sector agencies in the Zambezi Valley, and (iii) training, equipment and consultancies for GAZEDA and related public sector agencies in the Nacala Corridor.

Component 4: Project Implementation (US$8.0 million):Investments under this component will support the operations of the PCU in MPD which includes two regional Project Managers co-located in ZVDA and GAZEDA to coordinate and support Project implementation. The component will support project implementation costs including: (i) PCU staff (ii) PCU operating costs, (iii) consultants for ANE to supplement contract supervision capacity, (iv) IDCF Fund Manager and initial project preparation costs, (v) training and consulting studies (vi) data collection, compilation and analysis and establishing a Project monitoring and evaluation system, (vii) safeguards management including training, preparation of RAPs, ESIAs and ESMPs and monitoring of implementation of safeguards instruments (viii) impact evaluation.

Physical interventions will be in the form of:

  • Roads, utilities, district/municipal facilities and logistics facilities including urban water supply (Nacala Porto);
  • Feeder roads
  • Value-adding facilities for commercial agribusiness.

Project Formulation and Implementation Arrangements

A consultative and participatory process will be adopted in the identification and selection of specific and final sub-projects to be considered for funding. Among others the provinces and districts will review their strategic development plans and ensure that relevant plans and projects become part of the Project.

The ESMF basic principles and requirements will be applied throughout the entire Projectlife cycle.

The project preparation is under the overall responsibility of MPD. A Steering Committee chaired by MPD and bringing together the main sectors involved in the Project (ZVDA, GAZEDA, MPD, MICOA, MMAS, MTC, MOPH and MINAGRI) will assist in project management and ensure that relevant stakeholders participate in its management.

Development Context

The Project happens at a time when the Mozambican economy is recordingacceleratedgrowth rates, whichare supportedby high levels ofassistance fromDevelopment Partners. Thegrowth ratesresult from theeffortsin the field ofmacroeconomic policy managementand strengtheningtheenabling environment forpromotion ofdomestic and foreignprivate investment. Economic growthhas been drivenby (i) foreign direct investment inmegaprojectsand operatinglarge-scalehigh-valueagricultural productssuch as cotton, sugar and tobacco, (ii) the favorableagricultural growth, and (iii) infrastructure rehabilitation projects, including roads.

However, despitethe remarkable growth,the country continues tobe amongthe world's poorest. The country is in the 184th position among 187 countries in terms of human development index. A number ofinstitutional andother constraintscontinue to hamper thedelivery of basic social services.

The country’s economyis characterized by avery small number ofmegaprojectson the one hand, and thefamilyand informalsector, on the other, which encourages imbalancesin developmentand affects diversification of production andaccess to the benefitsof thedevelopment bya significant proportionof the population. Investments in infrastructure such asroads, water supply and sanitation, energy, telecommunications, etc.should continue to playarole in thisprocess of stabilizationand gradualelimination ofimbalances. Strengthening micro, small and medium size enterprises (MSMEs) is seen as key to changing the prevalent situation.

The two regions that define the project area are rich and diverse in terms of the receiving physical, biological and socioeconomic environment. Interventions need to be adequately planned, implemented, monitored and evaluated to ensure that such environment is not adversely affected.

World Bank Safeguards Policiesand GOM Regulations

The objective of the ESMF is to ensure that relevant World Bank Safeguards Policies and GOM environmental and social regulations are strictly adhered to. The Project has triggered five of the World Bank’s 10+2 Safeguards Policies, namely, Environmental Assessment (OP/BP 4.01), Pest Management (OP 4.09), Involuntary Resettlement (OP/BP 4.12), Natural Habitats (OP/BP 4.04) and Physical Cultural Resources (OP/BP 4.11), as well as adhered to the World Bank Group General Environmental, Health and Safety Guidelines (EHS), Tourism and Hospitality Development EHS Guidelines and the applicable Agribusiness/Food Production EHS Guidelines from April 2007. The ESMF has made provision to address potential concerns afferent to both OP/BP 4.04 (Natural Habitats) and OP/BP 4.11 (Physical Cultural Resources). A Resettlement Policy Framework (RPF) has been prepared to satisfy the Involuntary Resettlement (OP/BP 4.12) Safeguard Policy requirements and a Pest Management Plan (PMP) has been prepared to satisfy OP 4.09 requirements. These two documents have been prepared separately and should be used together with this ESMF.

The Project will also be implemented in light of the GOM reform in the environmental sector in terms of: (a) adherence to and adoption of a series of international and regional environmental protection and conservation conventions and protocols; (b) approval of a significant set of legislations with direct and indirect implications to environmental and social protection; (c) creation of specific public institutions and/or strengthening of existing institutions dedicated to both environmental and social management in the country.

Both WB safeguards policies and GOM regulations will be applied to ensure that potential negative environmental and social impacts on land resources, soils, water resources, biodiversity, vegetation, local communities and the society at large are adequately managed and positive impacts are enhanced.

Subproject Formulation and Selection

As part of the ESMF a social and environmental screening process will help (i) determine which construction or rehabilitation activities are likely to have potential negative environmental and/or social impacts; (ii) determine the level of environmental and social work required, including whether an ESIA/ESMP or a freestanding ESMP will be required or not; (iii) determine appropriate mitigation measures for addressing adverse impacts; (iv) incorporate mitigation measures into the subprojects financed by the Project; (v) indicate the need for the preparation of a Resettlement Action Plan (RAP), which would be prepared in line with the Resettlement Policy Framework (RPF), prepared for the Project; (vi) facilitate the review and approval of the construction and rehabilitation proposals; and (vii) provide guidance for monitoring environmental and social parameters during the implementation and operation of subproject activities.