E4142REPÚBLICA 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, February 2013

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LIST OF ACRONYMS ANE National Roads Administration CBNRM Community-Based Natural Resource ManagementDA District Administration DCC District Consultative Council DNA National Directorate for WaterDNE National Directorate for EnergyDNPO National Directorate for Planning DNAPOT National Directorate for Land Planning DNPA National Directorate for Environmental Promotion and Education DPA Provincial Directorate of Agriculture DPCA Provincial Directorate for the Coordination of Environmental AffairsDPOPH Provincial Directorate of Public Works and Housing EA Environmental Assessment EDM Electricidade de MoçambiqueEIA Environmental Impact Assessment EMP Environmental Management PlanESIA Environmental and Social Impact AssessmentESMF Environmental and Social Management FrameworkESMP Environmental and Social Management PlanFAO Food and Agriculture OrganizationFIPAG Water Supply Investment and Asset Management FundGAZEDA Special Economic Zones OfficeGDP Gross Domestic ProductGOM Government of MozambiqueIDA International Development AssociationIDCF Innovation and Demonstration Catalytic FunMAE Ministry of State Administration MCA Millennium Challenge AccountMCC Millennium Challenge CorporationMDP Municipal Development Project MICOA Ministry for the Coordination of Environmental AffairsMINAGRI Ministry of Agriculture MISAU Ministry of HealthMOF Ministry of Finance MOPH Ministry of Public Works and Housing MSME Micro Small and Medium EnterprisesNCSD National Commission for Sustainable Development NEMP National Environmental Management Programme NGO Non-Governmental OrganizationPARPA Action Plan for the Reduction of Absolute Poverty PCU Project Coordination UnitPDD District Development Plans (Plano Distrital de Desenvolvimento)PDPF Provincial Directorate of Planning and Finance PDUT District Land Use PlanPEPA Environmental Quality Standards of Mozambique ProjectsPLPP Provincial level project personnel (with monitoring responsibilities)PPU Provincial Project UnitPRS Poverty Reduction StrategyRAP Resettlement Action Plan

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RPF Resettlement Policy FrameworkSDAE District Services of Economic ActivitiesSDMAS District Services of Women, Social Affairs and Health SDPI District Services of Planning and InfrastructureToR Terms of Reference UCA Coordination and Support Unit UNDP United Nations Development ProgramWB World BankWHO World Health Organization ZVDA Zambezi Valley Development Agency

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ACKNOWLEDGEMENTS The preparation of the ESMF comes under the Integrated 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 regulations are 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.

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TABLE OF CONTENTS

LIST OF ACRONYMS I

ACKNOWLEDGEMENTS III

TABLE OF CONTENTS IV

EXECUTIVE SUMMARY VIII

SUMÁRIO EXECUTIVO XIV

1- INTRODUCTION 18

2 PROJECT DESCRIPTION 18

2.1 Project Development Objectives and Principles 18

2.2 Project Components 18

2.3 Anticipated sub-Project types under the Project 18

2.4 Sub-project activities ineligible for funding 18

3 PROJECT IMPLEMENTATION ARRANGEMENTS 18

3.1 Implementation by Component 18

4 DEVELOPMENT CONTEXT IN MOZAMBIQUE AND THE PROJECT AREA 18

4.1 General Country Development Context and Project Relevance 18

5 - PROJECT TARGETED AREAS 18

5.1 Location 18

5.2 Physical Environment 185.2.1 The Zambezi Valley (Tete, Manica, Zambezia and Sofala Provinces) and Angonia Growth Pole 185.2.2 Nacala Development Corridor (Niassa and Nampula provinces) and Nacala Growth Pole 18

5.3 Biological Environment 185.3.1 The Zambezi Valley (Tete, Manica, Zambezia and Sofala Provinces) and Angonia Growth Pole 185.3.2 Nacala Development Corridor (Niassa and Nampula Provinces) and Nacala Growth Pole 18

5.4 Socio-economic Situation 18

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5.4.1 The Zambezi Valey (Tete, Manica, Zambezia and Sofala Provinces) and Angonia Growth Pole 185.4.2 Nacala Corridor (Tete, Niassa and Nampula Provinces) and Nacala Growth Pole 18

6- WORLD BANK SAFEGUARDS POLICIES 18

6.1 Environmental Assessment (OP/BP 4.01) 18

6.2 Pest Management (OP 4.09) 18

6.3 Involuntary Resettlement (OP/BP 4.12) 18

6.4 Natural Habitats (OP/BP 4.04) 18

6.5 Physical Cultural Resources (OP/BP 4.11) 18

7 LEGAL AND INSTITUTIONAL FRAMEWORK FOR ENVIRONMENTAL AND SOCIAL MANAGEMENT IN MOZAMBIQUE 18

7.1 Legal Framework 187.1.1 Adherence to International and Regional Conventions and Protocols 187.1.2 Approval of Domestic Policy and Legal Instruments 18

7.2 Institutional Framework 18

8 ENVIRONMENTAL AND SOCIAL CONCERNS OF TARGETED AREAS 18

9 POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS AND MITIGATION MEASURES 18

9.1 Potential adverse environmental and social impacts 18

9.2 Other potential adverse socio-economic impacts 18

9.3 Potential positive impacts 18

9.4 Measures to mitigate negative impacts 18

10 GUIDELINES FOR SUB-PROJECT SCREENING, PREPARATION, APPRAISAL, APPROVAL AND MONITORING 18

10.1 Screening of Project Activities and Sites 18

10.2 Assigning the Appropriate Environmental and Social Categories 18

10.3 Carrying out Environmental and Social Work 18

10.4 Environmental and Social Checklist: 18

10.5 Environmental and Social Impacts Assessment (ESIA) 18

10.6 Subproject Review and Approval 18

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10.7 Participatory Public Consultation and Disclosure 18

10.8 Annual Monitoring Reports and review 18

10.9 Environmental and Social Audit 18

10.10 Other Important Issues 1810.10.1 Integration and harmonization with the district land use plans 18

11 GUIDELINES FOR ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN AND MONITORING REQUIREMENTS 18

11.1 Environmental and Social Management Plan (ESMP) 18

11.2 Pest Management Plan 18

11.3 Involuntary Resettlement (Resettlement Action Plan) 18

12 TRAINING AND CAPACITY BUILDING REQUIREMENTS 18

12.1 Institutional Capacity Assessment and Analysis 18

12.2 Proposed Training and Awareness Programs 18

12.3. Technical Assistance (TA) 18

13 ESMF MONITORING REQUIREMENTS 18

14 PROPOSED ESTIMATED IMPLEMENTATION BUDGET. 18

REFERENCES 18

List of Figures

Figure 1: Overview of the Project Area (Zambezi Valley and Nacala Corridor).....................................................................................................................viiiFigure 2: The main development corridors in Mozambique..................18Figure 3: The Districts of the Zambezi Valley..............................................18Figure 4: The Project districts in Nacala Corridor.....................................18Figure 5: Angonia growth pole...........................................................................18Figure 6: Nacala growth pole.............................................................................18Figure 7: Various water uses in the Zambezi Valley (Shire River)......18Figure 8: Men and women selling maize in the informal markets of Tete City.......................................................................................................................18Figure 9: Land use planning session in Morrumbala District (Zambezia Province)...............................................................................................18

List of Tables

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Table 1: Population of the Zambezi Valley by districts............................18Table 2: Population of Nacala Corridor by districts..................................18Table 3: Safeguard Policies Triggered by the Project..............................18Table 4: Measures to mitigate negative impacts........................................18Table 5: Estimated budget for ESMF implementation.............................18

List of Annexes

Annex 1: Status Quo of Preparation of District Land Use Plans in the Project Area (provinces)......................................................................RAnnex 2: Environmental and Social Screening Form for subprojects RAnnex 3: Preliminary Environmental Information Sheet....................RAnnex 4: Checklist for environmental and social impacts..................RAnnex 5: Environmental and Social Clauses..................................................RAnnex 6: Summary of Main Issues from the Public Participation/Consultation Process....................................................................RAnnex 7: Good Agricultural Practices - Hygiene and Safety...................RAnnex 8: List and Contacts of People Consulted..........................................RAnnex 9: Terms of Reference for the Formulation of the ESMF, PMP and RPF.........................................................................................................................R

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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

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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.

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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

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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 Project life 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 recording accelerated growth rates, which are supported by high levels of assistance from Development Partners. The growth rates result from the efforts in the field of macroeconomic policy management and strengthening the enabling environment for promotion of domestic and foreign private investment. Economic growth has been driven by (i) foreign direct investment in mega projects and operating large-scale high-value agricultural products such as cotton, sugar and tobacco, (ii) the favorable agricultural growth, and (iii) infrastructure rehabilitation projects, including roads.

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However, despite the remarkable growth, the country continues to be among the world's poorest. The country is in the 184th position among 187 countries in terms of human development index. A number of institutional and other constraints continue to hamper the delivery of basic social services.

The country’s economy is characterized by a very small number of mega projects on the one hand, and the family and informal sector, on the other, which encourages imbalances in development and affects diversification of production and access to the benefits of the development by a significant proportion of the population. Investments in infrastructure such as roads, water supply and sanitation, energy, telecommunications, etc. should continue to play a role in this process of stabilization and gradual elimination of imbalances. 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 Policies and 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

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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.Given the multisectorality and complexity of the project, and to ensure appropriate implementation and monitoring of social and environmental issues, the ESMF recommends the recruitment of (i) Two Social and Environmental Safeguard Specialists to be co-located in the ZVDA in Tete (1) and GAZEDA, Nacala (1) and (ii) a Communications Officer with a good knowledge of environmental and social safeguards for the PCU based in Maputo to timely liaise with these 2 provincial safeguards specialists. These three staff will work closely with MICOA at both central and provincial levels and be responsible for the proper handling of Environmental, Social and Communication dimensions of the project throughout its life cycle. These staff will be trained by WB Safeguards Specialists, and in close collaboration with MICOA.

Environmental and Social Management Plans (ESMP)

Where relevant, site specific Environmental and Social Impacts Assessment (ESIA) with a costed Environmental and Social Management Plan (ESMP) or just an Environmental and Social Management Plans (ESMP) will be prepared so that the Project (i) avoids activities that could result in adverse environmental and social impacts on resources or areas considered as sensitive; (ii) prevents the occurrence of negative environmental and social impacts; (iii) prevents any future actions that might adversely affect environmental and social resources; (iv) limits or reduces the degree, extent, magnitude or duration of adverse impacts by scaling down, relocating, redesigning elements of the project; (v) repairs or enhances affected resources, such as natural habitats or water resources, particularly when previous development has resulted in significant resource degradation; (vi) restores affected resources to an earlier (and possibly more stable and productive) state, typically ‘background / pristine’ condition; and (vii) creates, enhances or protects the same type of resources at another suitable and acceptable location, compensating for lost resources.

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Moreover, the ESMF includes standard Environmental and Social Clauses (ESC), which will be included in all bidding documents and in the various contracts (contractual clauses) for the design, construction and appropriate operation of the interventions to be adopted for simple subprojects. Contractors for simple projects will be responsible for the implementation of these Environmental and Social Clauses during construction and will need to recruit qualified staff, responsible for environment/social and health and safety issues, to do this. Contractors for more complex subprojects will need to prepare and implement their own Environmental and Social Impacts Assessment (ESIA) and associated Environmental and Social Management Plan (Contractor ESMP). Contractors will need to employ qualified environmental/social, health and safety specialist(s) for this purpose. In all cases the Supervising Engineer will be required by contractual arrangement to supervise the adequate implementation of the Environmental and Social Clauses and the Contractor ESMPs. Once reviewed and cleared by ASPEN (the Africa Regional Safeguards Advisory Unit) the ESMF will be publicly disclosed both in-country and at the InfoShop prior to the project appraisal.

Pest Management Plan (PMP) and a Resettlement Policy Framework (RPF)

A separate Pest Management Plan (PMP) and a Resettlement Policy Framework (RPF) have been prepared to be used along with the ESMF. As for the ESMF, the RPF and PMP will also be reviewed and cleared by ASPEN and then publicly disclosed both in-country and at the InfoShop prior to project appraisal.

The PMP will assist in the implementation of the WB approach/vision and the GOM’s strategy that promote integrated pest management (IPM) approaches, such as biological control, cultural practices, and the development and use of crop varieties that are resistant or tolerant to the pest. In addition to agricultural insect pests and plant diseases, pests also include weeds, birds, rodents, and human or livestock disease vectors. Finally, the PMP also includes mitigations measures to reduce the impacts on human health, such as the adequate selection and safe use of pesticides, safe storage of pesticides and the safe disposal of pesticide containers. People who are vulnerable are elderly people, children, women and illiterate farmers, and require special attention.

The RPF will also ensure that involuntary resettlement is avoided where feasible, or minimized, exploring all viable alternative project designs. Where it will not be feasible to avoid resettlement, a Resettlement Action Plan (RAP) will be prepared and disclosed accordingly. Project Affected People (PAP) will be compensated and/or assisted prior to the start of any construction activity. Resettlement activities will be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. PAPs will be meaningfully consulted and be given opportunities to participate in planning and implementing resettlement programs. PAPs will be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-

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displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher”.

Training and Capacity Building

Extensive training and capacity building will be carried out in order to prepare relevant institutions at the various levels to plan, implement, monitor and evaluate the different aspects involved in sound environmental and social management as elaborated in this ESMF in particular, and in both the PMP and RPF.

Based on needs identification a specific institutional and human capacity building program for environmental and social management, as well as human health and safety will be developed as part of the Project. Beneficiary institutions will be the Ministry for the Coordination of Environmental Affairs (MICOA), especially at its provincial and district levels, relevant line ministries at its provincial and district levels (e.g. agriculture, public works, energy, health, education, MMAS and MPD, etc.), including local authorities (e.g. municipalities and others such as CSOs). The details of the capacity-building program and the institutions to be supported at provincial and/or local level, still has to be developed.

Practical ways of reaching out to all target groups will need to be devised for training and capacity needs assessments as well as for delivery of the training. The “Learning by Doing” approach will be given utmost priority.

Monitoring

Monitoring will also be fundamental to ensure that the objectives set forth in the ESMF and the ESIAs/ESMPs are being achieved satisfactorily and where there are nonconformities, timely corrective action can be taken. The Project Management Team will have the overall responsibility for coordinating and monitoring implementation of the ESMF.

Estimated Project Budget

The total cost for implementing this ESMF and for preparing and implementing the site specific ESIAs/ESMPs stands at US$ 600,000.00.

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SUMÁRIO EXECUTIVO Introdução

O QGSA descreve uma série de princípios que devem ser seguidos pelo Governo de Moçambique na implementação do Projecto Integrado de Pólos de Crescimento (PROJECTO), através do qual o Banco Mundial (BM) vai apoiar a estratégia do Governo de Moçambique (GOM) na promoção do crescimento inclusivo e de base alargada.

O enfoque do apoio será sobre os dois principais pilares do Plano de Acção para a Redução da Pobreza (PARP, 2011-14) (i) aumento da produção / produtividade agrária, (ii) aumento do emprego através de intervenções orientadas para fortalecer o dinamismo do sector privado para impulsionar o crescimento económico e acelerar a criação de emprego.

O projecto será implementado no (i) Vale do Zambeze, e (ii) Corredor de Nacala, . Devido a uma combinação de factores estas zonas do país estão a testemunhar crescimento sem precedentes que é impulsionado, em grande parte, pelas operações de mineração (principalmente do carvão) em Moatize (Tete). O enfoque inicial será sobre dois pólos de desenvolvimento seleccionados de forma cuidadosa, nomeadamente Angonia (compreendendo os distritos da Angónia, Tsangano e Macanga, na província de Tete) e Nacala (cidade de Nacala Porto e vila de Nacala-a-Velha, respectivamente).

Figura 1: A area do Projecto (Vale do Zambeze e Corredor de Nacala)

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Em consulta permanente e estreita com o GOM o Banco Mundial irá garantir que o interesse estratégico de inclusão, diversificação, criação de emprego e de oportunidades de geração de renda seja realizado em torno dos mega projectos na área do projecto. Infra-estruturas que sejam prioritárias serão identificadas, projectadas e construídas e vai haver actividades de formação, capacitação e demonstração. Isto será complementado pelo fortalecimento de um ambiente favorável, bem como a adopção de medidas adequadas para a monitoria e avaliação das intervenções.

Componentes do Projecto

O projecto terá quatro componentes principais, com a seguinte alocação preliminar de fundos:

Componente 1: Apoio ao Crescimento do Polo do Agronegócio na província de Tete, no Vale do Zambeze (EUA $ 39,0 milhões): O objectivo desta componente é o de fornecer apoio integrado para a melhoria da infra-estrutura local seleccionada e para a execução privada de investimentos públicos orientados sobretudo para aumentar a produção dos pequenos agricultores, ligando a agricultura familiar e o das MPMEs às cadeias de fornecimento/consumo emergentes assim como para aumentar as actividades de agro-processamento no Vale do Zambeze. Os investimentos em infra-estrutura local incidirão sobre os distritos de Angónia, Tsangano e Macanga, na Província de Tete, com vista a melhorar duas principais estradas rurais que ligam áreas agrícolas a estradas primárias e que darão aos produtores acesso aos mercados ao longo de todas as estações do ano. Esta componente está dividida em duas subcomponentes, nomeadamente: Sub-componente 1 Melhoramento da infra-estrutura local (EUA $ 21,5 milhões), que será composta por (A) Reabilitação de Estradas de Acesso ao Mercado, (B) Pequenas obras públicas e de anexos. Sub-componente 1B: Fundo Catalítico de Inovação e Demonstração (FCID) sobre investimentos no Vale do Zambeze (alocação da IDA no valor de: EUA $ 17,5 milhões, total: EUA $ 35,0 milhões) para melhorar a capacidade dos pequenos agricultores/MPMEs no Vale do Zambeze para terem acesso aos mercados através de investimentos privados orientados para o mercado complementados por investimentos públicos.

Componente 2: Apoio à Nacala Zona Económica Especial (ZEE) no Corredor de Nacala (EUA $ 43,0 milhões): O objectivo desta componente éo de fornecer apoio para o desenvolvimento do Corredor de Nacala. As actividades da componente centram-se sobre (a) melhoramento da infra-estrutura para o desenvolvimento da ZEE de Nacala (sistema de abastecimento de água e uma estrada de acesso), e (b) apoiar a execução privada de investimentos públicos para aumentar a produção dos pequenos agricultores, ligar os pequenos agricultores às cadeias emergentes de fornecimento/consumo, e aumentar as actividades de agro-processamento. Esta componente também encontra-se subdividida em duas subcomponentes: Sub-componente 2A: Melhoramento da infra-estrutura física da ZEE de Nacala (EUA 30,5 milhões dólares americanos) e Sub-componente 2B: Fundo Catalítico de Inovação e Demonstração (FCID) sobre investimentos no Corredor de Nacala (alocação da IDA no valor de EUA $ 12,5 milhões, Total: EUA $ 25,0

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milhões), com objectivos e modalidade semelhantes ao que foi especificado na Sub-componente 1B.

Componente 3: Desenvolvimento e Capacitação Institucional (EUA $ 10,0 milhões): O objectivo desta componente é o de fornecer apoio multi-anual aos principais órgãos públicos para reforçar a sua capacidade de planificar, coordenar e executar programas de investimento público e multilaterais. Ao nível nacional, o foco será na capacitação do recém-criado Departamento de Investimentos Públicos dentro do MPD. Ao nível provincial as actividades de capacitação vão centrar-se sobre a ADVZ e o GAZEDA com algum apoio às autoridades provinciais e municipais. A componente financiará (i) equipamentos, formação e consultorias para a planificação, coordenação e implementação de programas de investimento público, (ii) equipamentos, formação e consultorias para o ADVZ e outras agências do sector público no Vale do Zambeze, e (iii) a formação, equipamentos e consultorias para o GAZEDA e outras agências do setor público no Corredor de Nacala.

Componente 4: Implementação do Projecto (EUA $ 8,0 milhões): Os investimentos no âmbito desta componente serão para apoiar as operações da UCP no MPD o que inclui dois gestores de projectos regionais localizados, respecivamente, na ADVZ e no GAZEDA para coordenar e apoiar a implementação do projecto. AO componente irá sapoiar os custos de implementação do projecto, incluindo: (i) Pessoal da UCP (ii) Custos operacionais da UCP, (iii) Consultores para a ANE para complementar a capacidade de supervisão dos contratos, (iv) Gestor do Fundo da FCID e custos de preparação inicial do projecto, (v) a formação e estudos de consultoria (vi) recolha, compilação e análise de dados e estabelecer um sistema de monitoria e de avaliação do projecto, (vii) as garantias de gestão, incluindo a formação, preparação de PARs, EIASs e PGASs e acompanhamento da implementação dos instrumentos de salvaguarda, e para (viii) a avaliação de impacto.

As intervenções físicas serão sob a forma de:

Estradas, equipamentos, instalações e facilidades logísticas distritais/municipais, incluindo fornecimento de água urabana (Nacala Porto);

Estradas vicinais, irrigação em pequena escala, pequenas barragens de irrigação e fornecimento de energia

Facilidades de adicionamento de valor para o agronegócio.

Arranjos para a Formulação e Implementação do Projecto

Será adotado um processo consultivo e participativo na identificação e selecção de projectos concretos e finais a serem considerados para financiamento. Entre outros, as províncias e distritos irão rever os seus planos estratégicos de desenvolvimento e garantir que os seus planos e projectos se tornem em parte do Projecto.

Os princípios e requisitos básicos do QGSA serão aplicado durante todo o ciclo de vida do Projecto.

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A preparação do projecto está sobre a responsabilidade geral do MPD. Será formado um Comité de Gstão do Projecto dirigido pelo MPD e que reunirá os principais actores envolvidos com o PROJECTO (ZVDA, GAZEDA, MPD, MICOA, MMAS, MTC, MOPH and MINAGRI) que irá apoiar na gestão do projecto e garantir que as partes envolvidas curciais paraticipam na sua gestão.

Contexto de Desenvolvimento

O Projecto acontece numa altura em que a economia moçambicana está a registar taxas de crescimento aceleradas, que são apoiadas por altos níveis de assistência dos Parceiros de Desenvolvimento. As taxas de crescimento são resultado dos esforços no domínio da gestão da política macroeconómica e do fortalecimento do ambiente propício para a promoção do investimento privado nacional e estrangeiro. O crescimento económico tem sido impulsionado por (i) investimento directo estrangeiro em mega projectos e que operam em larga escala em produtos de alto valor agrícola tais como açúcar, algodão e tabaco, (ii) o crescimento agrícola favorável, e (iii) projectos de reabilitação de infra-estrutura, incluindo estradas.

No entanto, apesar do crescimento notável, o país continua a estar entre os mais pobres do mundo. O país está na posição 184 entre 187 países em termos de índice de desenvolvimento humano. Existe uma série de constrangimentos institucionais e outras restrições que continuam a dificultar a prestação de serviços básicos.

A economia do país é caracterizada por um número muito reduzido de grandes projectos, por um lado, e o sector familiar e informal, por outro, o que encoraja desequilíbrios no desenvolvimento e afecta a diversificação da produção e o acesso aos benefícios do desenvolvimento por uma significativa proporção da população. Investimentos em infra-estrutura, como estradas, abastecimento de água e saneamento, energia, telecomunicações, etc. devem continuar a desempenhar um papel neste processo de estabilização e eliminação gradual dos desequilíbrios. Reforçar as pequenas e médias empresas (PME) é visto como chave para mudar a situação prevalecente.

As duas regiões que definem a área do projecto são ricas e diversificadas em termos do ambiente físico, biológico e socioeconómico receptor. As intervenções precisam de ser adequadamente planificadas, implementadas, monitoradas e avaliadas para garantir que o ambiente receptor não seja prejudicado.

Políticas de Salvaguardas do Banco Mundial e Regulamentos do GOM

O objectivo do QGSA é o de garantir que Políticas de Salvaguardas do Banco Mundial e que os regulamentos ambientais e sociais relevantes do GOM sejam rigorosamente respeitadas. O Projecto irá desencadear cinco das 10+2 Salvaguardas e Políticas do Banco Mundial, nomeadamente, Avaliação Ambiental (OP / BP 4.01), Gestão de Pragas (OP 4.09), Reassentamento Involuntário (OP / BP 4.12), Habitats Naturais (OP/BP 4.04), Recursos Físico Culturais (OP/BP 4.11), assim como as Directrizes do

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Grupo do Banco Mundial sobre o Ambiente, Saúde e Segurança Gerais, Desenvolvimento do Turismo, Directrizes de SSA aplicáveis ao Agribusiness/Produção de Alimentos, de Abril de 2007. O QGSA tomou medidas para dar respostas às pontenciais preocupações relacionadas quer como as OP/BP 4.04 (Habitats Naturais) e OP/BP 4.11 (Recursos Físicos Culturais). Foi preparado um Quadro de Política de Reassentamento (QPR) para ir de encontro à Política de Salvaguarda de Reassentamento Involuntário (OP/BP 4.12) e foi preparado um Plano da Gestão de Pragas para ir de encontro à (OP 4.09). Estes dois documentos foram preparados em separado e devem ser utilizados em conjunto com este QGSA.

O QGSA também será implementado à luz da reforma do GOM no sector do ambiente, em termos de: (a) adesão e adopção de uma série de convenções e protocolos regionais e internacionais de protecção ambiental e de conservação; (b) aprovação de um conjunto significativo de legislação com implicações directas e indirectas para a protecção ambiental e social; (c) criação de instituições públicas específicas e/ou o fortalecimento de instituições existentes dedicadas à gestão ambiental e social no país.

Tanto as políticas de salvaguarda do Banco Mundial como os regulamentos do GOM serão aplicados para garantir que o potencial de afectar negativamente os recursos terrestres, solos, recursos hídricos, da vegetação e da sociedade em geral seja adequadamente gerido e os impactos positivos sejam realçados.

Formulação e Selecção de Subprojectos

Como parte do QGSA haverá um processo de selecção para (i) determinar que actividades de construção e reabilitação são susceptíveis de ter potenciais impactos ambientais e sociais, (ii) determinar o nível de acção ambiental necessária, incluindo se uma AIAS/PGAS ou apenas um simples PGAS são necessários ou não, (iii ) determinar as medidas de mitigação apropriadas para lidar com os impactos adversos, (iv) incorporar medidas de mitigação nos subprojectos financiados pelo PPID, (v) indicar a necessidade de preparação de um Plano de Acção de Reassentamento (RAP), que será elaborado em conformidade com o Quadro da Política de Reassentamento (RPF), também preparado para o Projecto, (vi) facilitar a revisão e aprovação da construção e propostas de reabilitação, e (vii) fornecer orientações para o monitoramento de parâmetros ambientais durante a implementação e funcionamento das actividades dos subprojectos.

Dada o carácter multissectorial e a complexidade do projecto, e para garantir a implementação e monitorização adequadas das questões sociais e ambientais, o QGSA recomenda que se recrute (i) DoisEspecialistas de Salvaguarda Social e Ambiental para trabalhar com o GDVZ e com o GAZEDA; (ii) o recrutamento de um Oficial de Comunicação comm bons conhecimentos de salvaguardas ambientais e sociais para a UCP com base em Maputo, para que de forma atempada possa trabalhar com os dois especialistas provinciais de salvaguardas. Estas três pessoas trabalhrão de forma estreita com o MICOA queer ao nível central quer provincial e serão responsáveis pela gestão adequada das dimensões Ambientais, Sociais e de Comunicação do projecto. Este pessoal vai ser formado por especialistas de salvaguarda do BM e em estreita colaboração com o MICOA.

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Planos de Gestão Ambiental e Social (PGAS)

Onde for relevante site serão preparados Estudos de Impacto Ambiental e Social (EIAS) contendo um Plano de Gestão Ambiental e Social orçamentado ou simplesmente serão preparados Planos de Gestão Ambiental e Social (PGAS) para que o Projecto (i) evite actividades que possam resultar em impactos ambientais e sociais negativos, bem como recais sobre recursos ou áreas consideradas sensíveis, (ii) previna a ocorrência de impactos ambientais e sociais negativos, (iii) impeça quaisquer acções futuras que possam afectar negativamente recursos ambientais e sociais, (iv) limite ou reduza o grau, extensão, magnitude e duração dos impactos adversos por intermédio da minimização, deslocação, redesenho de elementos do projecto, (v) reparação ou melhoramento de recursos afectados, como os habitats naturais ou recurssos hídricos, especialmente quando desenvolvimentos anteriores tenham resultado em significativa degradação dos recursos; (vi) restauração de recursos afectados ao estado anterior (e, possivelmente, estado mais estável e produtivo), tipicamente mais natural, e (vii) crie, melhora ou proteja o mesmo tipo de recursos num outro local adequado e aceitável, compensando recursos perdidos.

Para além disso, o QGAS inclui Cláusulas Sociais e Ambientais (CSA) padrão que serão incluídas em todos os documentos de concurso e contratos (claúsulas contratuais) relacionados com o desenho, construção e funcionamento adequado das intervenções a ser adoptadas como subprojectos simples. Os empreiteiros de projectos simples serão responsáveis pela implementação destas Cláusulas Sociais e Ambientais durante a construção e, nesse sentido, precisarão de recrutar pessoal qualificado para ser responsável pelas questões ambientais/sociais e de saúde e segurança. Para os subprojectos mais complexos o Especialista de Salvaguarda do QGAS vai preparar uma Avaliação de Impacto Ambiental e Social (AIAS)/PGAS. Com base nos documentos dos PGAS os empreiteiros a envolver em subprojectos mais complexos precisarão de preparar e implementar os seus próprios Planos de Gestão Ambiental e Social (PGAS dos Empreiteiros). Os Empreiteiros precisarão de empregar especialistas ambientais/sociais, de saúde e segurança para este efeito. Em todos os caso, os arranjos contratuais vão exigir que o Engenheiro de Supervisão supervisione a implementação adequada das Cláusulas Sociais e Ambientais e dos PGAS dos Empreiteiros. O QGAS será aprovado pelo Banco Mundial depois de ser divulgado em público no país e na InfoShop antes da avaliação do projecto.

Plano de Gestão de Pragas (PGP) e Quadro da Política de Reassentamento (RPF)

Em separado foram preparados o Plano de Gestão de Pragas (PGP) e Quadro da Política de Reassentamento (RPF) para ser usados em conjunto com este QGSA. Tal coomo o QGAS, os PGP e QPR serão aprovados pelo Banco Mundial depois de ser divulgados em público no país e na InfoShop antes da avaliação do projecto.

O PMP vai ajudar na implementação da abordagem e da visão assim como das estratégias do BM e do GOM que promovem abordagens sobre a Gestão Integrada de Pragas (GIP), tais como o controlo biológico, práticas

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culturais e para o desenvolvimento e uso de variedades resistentes ou tolerantes às pragas. Para além das pragas de insectos e doenças das plantas, as pragas incluem ervas daninhas, aves, roedores, e vectores de doenças humanas ou de animais. Por fim, o PGP também inclui medidas de mitigação com vista a reduzir impactos sobre a saúde humana, como é o caso da adequada seleccão e uso seguro de pesticidas, armazenamento seguro de pesticidas e a deposição segura dos contentores de pesticidas. As pessoas que são vulneráveis a estas substâncias são as pessoas idosas, crianças, mulheres e agricultores analfabetos e requerem atenção especial.

O RPF também irá garantir que o reassentamento involuntário seja evitado sempre que possível, ou minimizado, explorando todas as alternativas dos projectos que sejam viáveis. Onde não for possível evitar o reassentamento, será, em conformidade, preparado e publicitado um Plano de Acção do Reassentamento (PAR). As pessoas afectadas pelo projecto (PAPs) serão compensadas e/ou apoiadas antes do início de quaisquer actividades de construção. As actividades de reassentamento serão concebidas e executadas como programas de desenvolvimento sustentável, fornecendo recursos de investimento suficientes para permitir que as pessoas deslocadas pelo projecto possam compartilhar os benefícios do projecto. As pessoas afectadas pelo projecto serão significativamente consultadas e terão a oportunidade de participar na planificação e implementação dos programas de reassentamento. As pessoas afectadas pelo projecto serão assistidas nos seus esforços para melhorar os seus meios e padrões de vida, ou pelo menos para restaurá-los, em termos reais, a níveis prevalecentes antes do início da implementação do projecto, conforme o que vai ser melhor”.

Formação e Capacitação

Haverá extensa formação e capacitação a fim de preparar as instituições relevantes aos diferentes níveis para planificar, implementar, monitorar e avaliar os diferentes aspectos envolvidos na gestão ambiental e social tal como elaborado neste QGSA em particular, e no PGP e QPR.

Com base na identificação das necessidades de formação será desenvolvido um programa específico de fortalecimento institucional e humano e da capacidade de gestão ambiental e social assim como de saúde e segurança humanas como parte do Projecto. As instituições beneficiárias serão o Ministério para a Coordenação da Acção Ambiental (MICOA), particularmente aos níveis provincial e distrital, os ministérios relevantes (por exemplo, agricultura, obras públicas, energia, recursos minerais, saúde, educação, MMAS e MPD, etc), incluindo autoridades locais (municípios por exemplo, e outros, como OSC). Os detalhes do programa de capacitação e as instituições que serão apoiadas e a que nível: provincial e/ou local, ainda terão que ser desenvolvidos.

Deverõ ser elaboradas formas práticas de atingir todos os grupos-alvo para a avaliação das necessidades de formação e capacitação, bem como para a realização da formação. Será dada prioridade à abordagem de “aprender a fazer fazendo”.

Monitoria

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A monitoria também será fundamental para garantir que os objectivos estabelecidos no QGSA e nas AIASs / PGASs sejam alcançados de forma satisfatória e onde não houver conformidade para que se possa, em tempo útil, introduzir alterações. A Equipa de Gestão do Projecto terá a responsabilidade geral pela coordenação e acompanhamento da execução do QGSA.

Orçamento Estimativo do QGSA

A implementação do QGASdos respectivos AIASs/PGAs specificos nos diferentes sítios estão orçados em EUA 600,000.00.

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1- INTRODUCTION The purpose of this study/consultancy is to provide an Environmental and Social Management Framework (ESMF) for the proposed Integrated Growth Poles Project (the 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 Governments Plano de Acção de Redução da Pobreza (PARP, 2011-14) (i) increasing agricultural production/productivity; (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 over a period of 6 years and it is expected to contribute significantly in meeting important development objectives embraced by the GOM in terms of diversifying the economy and making it more inclusive. This will be fundamental in a context in which it is increasingly acknowledged that the country’s economy is becoming polarized by having some big enterprises on one hand and a wide number of informal SMEs, mostly micro enterprises, on the other hand. This fuels imbalances in development and hampers access to the benefits of the development by a significant proportion of the population1. Significant investments in infrastructure such as roads, water supply and sanitation, electricity, etc. should continue to play a role in this process of stabilization and gradual elimination of imbalances as should the creation of a business environment in which SMEs can become competitive, grow and diversify.

The geographical area selected for implementing the Project, namely the (i) Zambeze Valley; and (ii) Nacala Corridor. The provinces and districts in these two areas and particularly Tete and Nampula provinces are witnessing unprecedented growth fueled largely by mining (mainly coal) operations in Moatize (Tete province). Plans to transport coal from Moatize to Nacala after crossing successively parts of Tete province (Moatize), Malawi and the districts of Niassa and Nampula provinces within the Nacala Corridor are at an advanced stage. 2015 may witness the circulation of the first trains transporting coal from the origin in Moatize to the export point in Nacala-a-Velha port. Other similar operations are planned to follow suit by other investors in coal mining. These will place the Zambeze Valley and parts of the Nacala Corridor and other adjacent areas (e.g. the provinces of Tete, Zambezia, Niassa and Cabo Delgado) in a situation never seen before in terms of coal related mega operations.

If concrete measures are not adopted and put in place now it is not only an opportunity of using mega developments as anchors for overall socioeconomic development that will be missed, but also these developments in themselves will possibly exacerbate the existing imbalances in the country’s economy, which could fuel increasing social unrests throughout/along the growth corridor from Te to Nampula provinces. Thus, the Project comes at a right time.

1 Carlos Nuno Castel-Branco (2008) "The Mega Projects in Mozambique: What Contribution to National Economy?" Civil Society Forum on Extractive Industries, Natural History Museum (Maputo), 27 and 28 November 2008.

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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 to specifically respond to the expectations of local beneficiaries. Efforts will be made to create an enabling environment including the adoption of adequate measures for intervention monitoring and evaluation, drawing lessons learned and improve the interventions at hand as well as apply them in other relevant areas across the country.

Infrastructure development (e.g. roads, feeder roads, urban water supply, power generation/distribution facilities, etc.) in particular but also other interventions will have positive and negative implications on the receiving natural and socioeconomic environment. In line with the GOM and WB principles and guidelines related to environmental and social management, such interventions should be designed, implemented and operated in such a way as to avoid causing harm to both the natural and social environment.

The Environmental and Social Management Framework (ESMF) is meant to be a guide to the screening of the proposed Project interventions (sub-projects) to ensure that they do not affect negatively the natural and social environment. The ESMF is particularly relevant in a situation where there is still an unclear definition of the project interventions, as is the case of the Project at this stage. The ESMF outlines a number of principles, which include:

A systematic procedure for participatory screening for sub-project sites and sub-project activities for environmental and social considerations;

A step-by-step procedure for predicting the main potential environmental and social impacts of the planned sub-project activities;

A typical environmental and social management plan for addressing negative externalities in the course of sub-project implementation (planning, construction and operation);

A step by step monitoring and evaluation system for implementation of mitigation measures; and

An outline of recommended capacity building measures for environmental and social planning and monitoring of the sub-project activities; and

A budget to ensure that the Project has adequate resources to meet its own interests, especially financial resources for the preparation and implementation sub-projects ESIAs, ESMPs and RAPs

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

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2 PROJECT DESCRIPTION The Integrated Growth Poles Project (the Project) intends to support the government’s strategy for inclusive and broad-based growth. Focus will be on the three main pillars of the Governments Poverty Reduction Plan/Plano de Acção de Redução da Pobreza (PARP, 2011-14)2 (i) increasing production and productivity in agriculture and fisheries; (ii) promoting employment; and (iii) fostering human and social development. Two supporting pillars will focus on fostering good governance and preserving macroeconomic stability. The proposed growth poles project will contribute towards supporting two of the main pillars through targeted interventions to strengthen the private sector and drive both economic growth and job creation.

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

1. Component 1: Support for the Tete agribusiness growth pole in the Zambezi Valley (US$ 39.0 million)

2. Component 2: Support for the Nacala Special Economic Zone (SEZ) in the Nacala Corridor (US$ 43.0 million)

3. Component 3: Institutional Development and Capacity Building (US$10.0 million)

4. Component 4: Project Implementation (US$8.0 million)

2.1 Project Development Objectives and Principles

The Project Development Objectives (PDO) are to improve the performance of local enterprises and smallholder farms in the Zambezi Valley and Nacala Corridor and particularly in the provinces of Tete and Nampula. It intends to support selective, targeted, integrated interventions in Tete and Nampula to improve the business environment, improve access to infrastructure and skills and strengthen the capacity of both public sector institutions and the domestic private sector to test and monitor and evaluate practical solutions in the implementation of the relevant SME development strategy.

2.2 Project Components The Project will include the following four components with preliminary respective estimates of fund allocations:

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 2 CM (Maio 2011) “Plano de Acção para a Redução da Pobreza (PARP) 2011-2014 – Aprovado na 15ª Sessão Ordinária do Conselho de Ministros de 3 de Maio de 2011”, Maputo, Moçambique

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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. The support for privately-executed public investments will be through the Innovation and Demonstration Catalytic Fund (IDCF) which will be targeted at scaling up existing investments (and attracting new investments) in outgrower type schemes, skills and vocational training and business linkages between MSMEs and large enterprises. The two sub-components are (a) upgrading of local infrastructure, and (b) Innovation and Demonstration Catalytic Fund (IDCF)

Sub-component 1A: Upgrading of local infrastructure (US$ 21.5 million)

(A) Rehabilitation of Market Access Roads (US$ 20.0 million).

The Tete Provincial Roads Strategy highlights roads N303, N322, R605, N302, R603/604 and R605 as being priority roads for investment and maintenance3.The MPD and ZVDA have further prioritized roads R605, R604 and N302 because of the high population concentration around these roads and the significant constraints on agricultural production; and the technical and economic assessment of upgrading R605, R604 and N302 concluded that upgrading R605 and R604 would lead to the maximum economic benefits. The project will finance the upgrading of market access roads, with a particular focus on the feasibility of R604, R605, and N302. Emergency works to rehabilitate the roads have been going on for some time, and ANE has been following Bank guidelines for their environmental and social management; the EMP will be updated to include additional mitigation measures once the sites and works have been finalized.

This sub-component will be implemented by the Fundo de Estradas (FE)/ANE through a Project Agreement with FE as the implementing agency and a sub-loan agreement between the FE and the MPD. A Designated Account will be opened by FE in a commercial bank. The responsibility for project implementation will be with the FE (as the legally autonomous entity for managing the collection and disbursement of road sector funds) while planning and implementation of the road works will be the responsibility of ANE. Responsibility for procurement, disbursement and management of the roads contracts financed under the Project will be with ANE. Disbursements from IDA will be made on the basis of incurred eligible expenditures. IDA would then make advance disbursements of the credit by making deposits into the FE Designated Account. The project implementing agency will submit quarterly progress reports to the PCU which, will, semi-annually evaluate the agencies performance against agreed targets. The fiduciary, safeguard, and monitoring and evaluation systems used will be the ones used by the agency and acceptable to the World Bank. The Project will also provide additional resources to 3 Details can be seen in the Provincial Roads Strategy for Tete Province, commissioned by the Provincial Government in 2010, with the participation of District Administrations, ANE headquarters and Tete delegation, the Fundo de Estradas, and a consultant from DFID. Província de Tete (2010) ‘Estratégia de Estradas’, November 2010.

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supplement ANE’s capacity for project supervision and performance monitoring.

In order to promote greater local participation and employment as well as establish capacity for sustained road maintenance beyond the Project duration, the FE/ANE are expected to bundle the road rehabilitation and maintenance works under a single contract with disbursements for maintenance made according to established performance-based criteria.4 The contract is expected to be an output and performance based road contract (OPRC) that is awarded through a competitive selection process that compares fixed lump-sum prices for bringing a road to a certain service level and then maintaining it at that level for a specified period. The monthly lump-sum remuneration for the contractor will cover all physical and non-physical maintenance services except for unforeseen emergency works, which will be remunerated separately. In addition to the above, the contract is also expected to stipulate that routine maintenance works must be sub-contracted to local maintenance brigades (Micro Empresas Rurais Associativas) that are organized and trained by the primary contractor. This arrangement will provide a single point of contact that will facilitate supervision and performance monitoring as well as align incentives between the contractor and the Government that is expected to reduce the administrative costs of performance monitoring.5

(B) Minor civil and ancillary works (US$1.5 million).

Activities financed under this sub-component will include repair and rehabilitation of office buildings including those of the ZVDA as well as upgrading of electricity, water and sanitation facilities for these buildings. These activities will be implemented by the PCU in collaboration with the ZVDA.

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)

The objective of the Innovation and Demonstration Catalytic Fund (IDCF) is to improve the ability of smallholder farms/MSMEs in the Zambezi Valley to access markets through market-oriented private and complementary public investments. The IDCF investments will have a catalytic role, demonstrating the incremental returns that can be achieved through access to technology and markets. The IDCF will therefore support linkages between medium and large firms and smallholder farms/MSMEs through targeted investments in public goods and services6 that will be executed by the private sector.

4 Based on Procurement of Works and Services under Output- and Performance-based Road Contracts and Sample Specifications, World Bank (2006).5 Based on the experience of the World Bank Infrastructure Services Project in Malawi, the administrative costs of performance monitoring were reduced from about 30% of contract value for community contracting to about 10% under this indirect community contracting model6 Examples of public good and services include demonstration centers, warehouses, packing houses, grading centers, cold storage, mechanization, certification, and training.

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The current market failures that are preventing smallholder farmers/MSMEs to access markets require a group of interventions that cannot be addressed with a traditional matching grant approach that provides just technical assistance. In this case, there is a significant requirement for a package of works, goods and service,s which have a public nature, such as extension services, warehouses, demonstration and training centers, and certification providers. The public sector has traditionally provided such infrastructure, goods and services. However, due to information asymmetries, the public sector does not have adequate access to the information required to provide the type of infrastructure, goods, and services. Examples of this include the limited coverage of extension services, and the construction of processing centers that do not have the required demand by the private sector. Therefore, under the IDCF, the implementation of such investments will be carried out by private entities with market-knowledge and by public entities in collaboration with the private sector. Specific eligibility criteria for project proposals have been prepared and are presented as an Annex of the Project Document.

The IDCF will be demand-driven and allocations will be made through a competitive selection process based on demonstrated evidence of benefits to smallholder farms and MSMEs through business linkages. Two types of business linkages will be supported under this sub-component:

1. Linking smallholder farms to agribusiness value chains: The objective of the IDCF is to catalyze business models where individual smallholder farmers or farmer associations partner with agribusiness firms to access existing or new markets. A typical qualifying investment for IDCF support would have a significant farm outreach component with the estimated value of direct support to farm households of at least 50 percent of the total investment. The direct involvement of farmers needs to be an essential part of the commercial partnership for eligibility of IDCF support. The IDCF investments are expected to increase the number of smallholder farmers who are able to enter the new and demanding markets in the Zambezi Valley and Nacala Corridor. An example of this partnership is the supply of fruits and vegetables to the catering companies that serve the mining sector in Tete. The marketing of the horticultural products can only be done through an organization that understands the demand and is able to aggregate the products as there is a certain minimum scale of production. Consequently, the current demand is being supplied by imports from places such as a South Africa and Brazil. Nonetheless, at the moment mining companies (e.g. Rio Tinto) are expressing interest to underwrite purchasing contracts for locally-sourced food, which can lead in the long run to access to better quality products at potentially lower prices. In this regard, the districts of Angonia and Tsangano have tremendous potential to supply the catering companies that serve the mining sector, but farmers cannot achieve the economies of scale, nor have access to the technology required to produce the type and quantity of product required to enter the mining value chain. The IDCF will support investment proposals, where agribusinesses together with farmers develop mutually commercially attractive agreements for the production and commercialization of

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high quality farm products, with the agribusiness investor expected to perform the marketing role in partnership with the farmers. Examples of supported activities are outgrower schemes, packing houses, grading centers, processing, warehouses, and cold storage facilities. These investments will be implemented by the private agribusiness firm under a contractual arrangement with the IDCF Manager. Each IDCF investment is expected to range in cost from approximately $500,000 to $1,500,000, which will include investments in infrastructure, equipment and services.

2. Linking MSMEs to the mining value chains: The objective of the IDCF here is to catalyze partnerships between private and public service providers and MSMEs to access existing and new market opportunities emerging from the large investments. The IDCF investments are expected to increase the number of MSMEs that are able to provide services as sub-contractors or vendors to Tier 1 or Tier 2 suppliers to the large investors. The investments are also expected to increase the number of skilled workers and the range of skills available in the local labor market. Lessons from linkages programs point out to the strength that can be gained when both the public and private sectors are involved (Pan American Energy, Argentina), with the public sector taking a vital role in facilitating partnerships in strategically important sectors (UNIDO-Microsoft partnership), and that successful examples can motivate and inspire (Unilever, Kenya)7. As an example, mining companies such as a Vale and Rio Tinto have strict quality, health safety and environment (HSE) standards, which local vendors need to comply with8. In this case, Tier 1 and Tier 2 suppliers as well as public and/or private service providers who are able and willing to provide the required training and certification of local MSMEs would be eligible for IDCF support. Examples of typical activities are the establishment of training centers and skills programs and quality certification programs. The IDCF investments will support a private service provider, or a public institution that demonstrates a partnership with the private sector or international service provider to deliver these services. This is to ensure that public sector proposals are market-tested and meet the immediate requirements of the local economy as well as the services provided are of acceptable quality. Each subproject is expected to range in cost from approximately $300,000 to $900,000, which will include investments in infrastructure, equipment and services.

Component 2: Support for the Nacala Special Economic Zone (SEZ) in the Nacala Corridor (US$ 43.0 million)

7 Jenkings et al. (2007). Business Linkages: Lessons, Opportunities, and Challenges. 8 In the case of Mozal, the SME Empowerment Linkages Program trained local SMEs to enable them to bid, win, and deliver on construction contracts that met Mozal standards. This was followed by MozLink with the objective to develop the SMEs’ capacity to a level where the local company is competitive and qualifies to bid for work with Mozal as well as other large companies. The results include an increase in local procurement from 40 to 250 companies (from 2002 to 2007) with annual local purchasing increasing from $5 million to $13 million (from 2001 to 2005). The performance of SMEs in the areas of quality, management, maintenance, and safety improved on average by 20 percent.

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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. The infrastructure investments are critical to improve the performance of existing businesses and attract new investors to the SEZ. The support for privately-executed public investments will be through the Innovation and Demonstration Catalytic Fund (IDCF) which will be targeted primarily at scaling up existing investments (and attracting new investments) in outgrower type schemes and skills and vocational training in the Nacala Corridor.

Sub-component 2A: Upgrading of Nacala SEZ physical infrastructure (US$ 30.5 million)

a. Expansion of water supply (US$ 24.5 million).

Expansion of water supply capacity to Nacala is critical for the success of the Nacala SEZ. The current water supply infrastructure is insufficient to meet current demand leading to severe water shortages. The existing water supply system in Nacala consists of approximately 74.6kms of network pipelines with 7,705 connections. The main water source is from the Muecula dam with the Mpaco and Mutuzi well fields supplementing this supply. However, the total coverage is low, with less than 55% of the city’s population having access to the water supply system and production from the source is limited, providing a constraint to further expansion efforts. The Project investments under this sub-component will expand both production capacity and the distribution network in Nacala, which is anticipated to increase supply to the SEZ by about 3,000 m3/day. In addition, there will be a substantial increase in supply for the local population.

The investments to be financed under this Project are an integral part of the wider investment program under the World Bank-financed 'Water Services and Institutional Support (WASIS) Project as follows:

i. Wells Field Development. This will consist of the drilling of boreholes in the existing M’Paco and Mutuzi well fields to be equipped with submersible pumps, pipe work, fittings required to connect the boreholes to the transmission main, electrical equipment, and electrical connections.

ii. Transmission Lines. The transmission mains will connect the M’paco and Mutuzi well fields to the distributions' centers. It is estimated that the length will be about 20 km and the diameter no greater than 400 mm. The exact diameters and lengths will be determined after the confirmation of the total flow from each well field at the end of the drilling and testing. The material to be used is ductile iron except if any unusual substance may be found in the water from the well fields.

iii. Distribution Centers. The existing Distribution Centers in Nacala require rehabilitation and new Distribution Centers are required as part of the works to supply water to the higher zones and to

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accommodate the additional water supply. The capacity and location of the Distribution Centers will be confirmed after the confirmation of the total flow from each well field at the end of the drilling and testing.

iv. Distribution Networks. Some of the depleted existing network needs to be replaced and the connections transferred to the new lines in order to reduce water losses. About 110 km of PVC pipe, ranging from 50mm to 400 mm diameter, will be required to extend the network and replace the above-mentioned sections. Some 26,000 water meters will be procured for additional connections.

v. Consultant Services. Consultant services will be required to identify the most viable long term source and to prepare bidding documents for construction. Consultant services will also be required for the supervision of the construction of the three projects for Transmission Lines, Distribution Networks as well as the Distribution Centers and Reservoirs. It is expected that there will be two supervision contracts: for the transmission/reservoirs and for the distribution network.

These investments are forecast to satisfy medium-term demand from Nacala until approximately 2017, after which a longer term supply source will need to be found. According to the Baker Report of 20069, water demand in Nacala will exceed supply capacity of 35,000 m3/day by around 2017. Medium-term solutions may include a desalination plant, which is more expensive per unit, but provides a guaranteed supply, and can be deployed in short period of time. A study on long-term water supply options will be financed under this project to assess the feasibility of new potential sources of water supply. The study may consider the dam sites, a desalination plant, the new wells fields identified in the Additional Groundwater Investigations, Nacala Report for Aquifer Assessment (Burnside August 2011), and other potential options. The preparation of this study will assist FIPAG to plan for further developments in Nacala and will help to provide reassurances to the private sector that additional demand requirements are being planned for and will be met.

The national water agency, FIPAG, will be responsible for the procurement, disbursement and management of the contracts financed under this sub-component. There will be a specific Project Agreement signed by FIPAG and a sub-loan agreement signed between FIPAG and the Government. A Designated Account will be opened by FIPAG in a commercial bank. FIPAG is the legally autonomous agency, which since its establishment in 1998 has been directly involved with the implementation of a large number of projects financed by the World Bank and other development partners. The fiduciary, safeguards, and monitoring and evaluation systems used by FIPAG are integral parts of the agency and are acceptable to the World Bank. The project will be implemented by FIPAG staff implementing the WASIS project. Disbursements from IDA will be made on the basis of incurred eligible expenditures/transaction-based disbursements. IDA would then make advance disbursements of the Credit by making deposits into the FIPAG Designated Account. FIPAG will submit quarterly progress 9 Baker (2006), ‘Nacala Dam and Reservoir Revised Technical Review and Interim Report’, October 1st, 2006. Report prepared by Michael Baker Jr, Inc as part of the Millennium Challenge Corporation (MCC) Mozambique Water & Sanitation Project for the Transatlantic Programs Centre US Army Corps of Engineers.

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reports to the PCU, which, will semi-annually evaluate FIPAG’s performance against agreed targets.

b. Rehabilitation of Nacala Porto – Nacala-a-Velha link road (R702) and bridges (US$ 6.0 million).

The project will examine the feasibility of rehabilitating Road R702, which is a critical access road linking the Nacala port and city (Nacala Porto) with the new port and heavy industrial area (Nacala-a-Velha). Emergency works to rehabilitate the road have been going on for some time, and ANE has been following Bank guidelines for their environmental and social management. The EMP will be updated to include additional mitigation measures once the sites and works on this road have been finalized.

c. Minor civil and ancillary works (US$0.5 million).

Activities financed under this sub-component will include repair and rehabilitation of office buildings including those of the Nacala Municipality as well as upgrading of electricity, water, ICT and sanitation facilities for these buildings as well as site demarcation and fencing of industrial plots for the Nacala SEZ. These activities will be implemented by the PCU in collaboration with GAZEDA and Provincial authorities.

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)

The objectives and modality of the IDCF in the Nacala Corridor are similar to that in Sub-component 1B. As mentioned earlier, the same Fund Manager will manage the IDCF in both the Zambezi Valley and Nacala Corridor.

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. Specific activities that will be financed under this component include: (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.

Sub-Component 3A: Strengthening capacity for planning, coordination and implementation of public investment programs under MPD (US$3.0 million). The current public investment management capacity of Government is relatively weak, and will be

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severely tested by the projected increase in fiscal resources and the country’s drive to address infrastructure gaps through public investments. This stresses the need for strengthening the Government’s capacity to manage public investments – to enhance the way in which public investment projects are planned, selected and monitored. The GoM has begun a process to strengthen their ability to better manage public investment, putting in place critical elements of an appropriate framework, such as the creation of an inter-ministerial Project Selection Committee, chaired by MPD as well as efforts to strengthen the technical capacity of the Directorate for Investment and Cooperation (DIC) in MPD. While the main responsibilities for the preparation of investment projects will be with the line Ministries, the Project Selection Committee will be responsible for evaluating projects at the technical level, before projects are considered by the Council of Ministers. A technical group based in DIC has been set up to support the work of the Project Selection Committee. MPD has prepared a draft Integrated Investment Program which is a first attempt at prioritizing public investments in the short to medium term. However, there are still missing elements that will be necessary to enhance the Government’s capacity in this area.

The Project will primarily strengthen the role that MPD and more specifically DIC has in ensuring a more effective integrated public investment program. To that end, it will focus on a number of the elements discussed above in which MPD’s role is more prominent. While MPD is responsible for the quality of the overall public investment portfolio, the projects will clearly be only as good as line ministries prepare or implement them. Implementation will only be possible if integrated within the annual budget by the Ministry of Finance. In that sense, the project, while focusing its capacity building activities on MPD, will also work with other relevant agencies as appropriate. More concretely, the subcomponent will provide support to MPD in the areas of investment planning, formal project appraisal, independent review of appraisal, project selection and budgeting and basic completion review and evaluation.

An improved public investment management system will severely test the convening and coordinating role that MPD can play. While MPD has a central role in the development of a system and reviewing its implementation, line ministries will remain responsible for the preparation, appraisal and implementation of projects and the Ministry of Finance for the budgeting process. The public investment management system will only improve and result in a more effective public investment management pipeline to the extent that line ministries and the Ministry of Finance participate in the efforts. MPD will therefore need to improve in the way it communicates with other agencies, develop a set of user-friendly processes and tools in accordance with existing capacities, and put in place a process that is transparent and therefore owned by the rest of Government. The project therefore will also provide technical assistance to improve the way MPD communicates and discusses reforms with other government agencies and the public at large.

Sub component 3B: Strengthening capacity of the ZVDA and Provincial authorities in the Zambezi Valley (US$ 3.5 million)

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The ZVDA was established in April 2011 to replace the Zambezi Planning Office (GPZ) as the lead planning and coordination agency for the development of the Zambezi Valley. The Zambezi Valley geographical area of intervention includes all the 12 districts of Tete Province, 9 districts of Zambezi Province, 7 districts of Sofala Province and 4 districts of Manica Province, extending 225,000 square kilometers (25 percent of Mozambique) and including almost 25 per cent of the total population of Mozambique. The sub component will provide support to strengthen technical capacity within the ZVDA for planning, coordination, investment promotion and facilitation, governance, monitoring and impact evaluation and strategic communications.

Subcomponent 3C: Strengthening capacity of GAZEDA and Provincial authorities in the Nacala Corridor (US$ 3.5 million)

GAZEDA and the Nacala Municipality and Customs require support in the planning, regulation, management and operation of the Nacala SEZ in order to strengthen its attractiveness for investors and enhance its business growth potential. Besides the infrastructure constraints (lack of reliable water and power supply and a poor road network) investors in the SEZ face a range of business environment challenges. The business environment in the SEZ can be significantly improved through streamlining procedures for investment approval, access to land and investment incentives. In addition, investors are concerned about crime and security of their investments including land expropriation. GAZEDA has a small dedicated team that will benefit from systematic training and exposure to international good practice in developing, promoting, marketing and managing SEZs including providing after care services. The institutional arrangements for the effective implementation of the SEZ could be clarified and strengthened including securing a private master developer/manager for the industrial zones. GAZEDA needs to be sufficiently empowered to promote and market clearly demarcated and transparently priced serviced industrial plots in the SEZ. The master planning process for the SEZ also could be improved with the preparation of phased, detailed zoning plans and establishing development guidelines and standards.

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 including a Project Coordinator, two Project Manager, a Senior Procurement Specialist, a Senior Financial Management Specialist, an Accountant, a Monitoring and Evaluation and Communications Specialist, two Social and Environmental Safeguards Specialists in Tete and Nacala and two Private Sector Development/Linkages Specialists (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) Social and Environmental safeguards management including training, preparation of RAPs, ESIAs/ ESMPs and implementation and monitoring of safeguards recommendations (viii) impact evaluation to

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determine whether Project interventions are impacting key outcomes including design and implementation of randomized controlled trial impact evaluations or other instruments including regression discontinuity and matching design.

2.3 Anticipated sub-Project types under the ProjectPhysical interventions will be in the form of:

Roads, utilities, district/municipal facilities and logistics facilities including for cross-border trade;

Feeder roads Value-adding facilities for commercial agribusiness.

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 other the provinces and districts will review their strategic development plans and ensure that relevant plans and projects become part of the Project.

2.4 Sub-project activities ineligible for fundingSub-projects not eligible for funding include those that:

Involve the significant conversion or degradation of critical natural habitats;

Are in locations that are ecologically sensitive such as forests, wetlands, and other unique habitats;

Are located in gazetted national parks, wildlife reserves, controlled hunting areas or forest reserves;

Imply the construction of large dams as defined in OP/BP 4.37 Safety of Dams, as well as small dams, which would trigger OP/BP 4.37 and the World Bank Policy of Projects on International Waterways OP/BP 7.50;

Involve activities already covered by other sources of financing or are already included in other national, regional public development programs and where financing has been secured;

Involve sub-projects which need large-scale land acquisitions from communities;

Involve growing or purchase of tobacco or drugs; Financing of Genetic Modified Organisms will need to be in

compliance of Mozambican legislation and will need an in-depth analysis of their beneficial or negative impacts before a decision on financing will be taken. It is recommended that these sub-projects not be eligible;

Clear selection criteria for the collaboration with investors will be developed with the objectives to minimize the environmental impacts as well as risks of significant social impacts, such as land grabbing.

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3 PROJECT IMPLEMENTATION ARRANGEMENTS

3.1 Implementation by Component The lending instrument selected for this project is the Specific Investment Loan (SIL). This flexible instrument allows the financing of different activities (consultants, equipment and works). Under IDA rules for Mozambique, the project will be financed as 100 percent credit (the Financing).

The Ministry of Planning and Development (MPD) will be the responsible Ministry for this Project. The agencies under MPD, the ZVDA, and GAZEDA will be responsible for the coordination and oversight of implementation in the Angonia Growth Pole and the Zambezi Valley and the Nacala growth pole/Nacala Corridor respectively.

Additional consultation with important stakeholders at the provincial, district and community levels will be carried out to ensure that local NGOs, the private sector and communities at large, particularly women, youth and most vulnerable groups participate in the updating of existing plans and strategies in a way that is in line with Project overall intentions.

A new and specific Project Coordination Unit (PCU) will be established under MPD for this Project. Until then, the existing Project Implementation Unit (PIU) for the NDPFP Project within the MPD will function as the interim PCU led by the Interim Project Coordinator. The PCU will provide for overall fiduciary management, monitoring and evaluation, project oversight, and coordination. The new PCU will consist of a Technical Project Coordinator, Operational Coordinator, Senior Financial Management Specialist, Senior Procurement Specialist, an M&E Specialist, and an Accountant, who will be hired under the PPA. The M&E Specialist will liaise with the Safeguards and Communication Specialist to timely report on the handling of safeguards. Reporting will be the responsibility of a Project Manager appointed by MPD who will be supported by a PIU in MPD. The Project Manager will report to the Steering Committee chaired by MPD.

A Project Manager reporting to the Project Coordinator will be co-located in the ZVDA office in Tete. The Project Manager will liaise with the various agencies in the Provinces, Municipalities and Districts and coordinate/support day-to-day implementation of the Project activities especially under Subcomponent 3B. The Project will support strengthening capacity of the ZVDA and will provide support for a Private Sector Development/ Linkages Specialist (who will be the focal point for the IDCF Manager), an Impact Evaluation/Communications Specialist and a Social and Environmental Safeguards Specialist.

A Project Manager reporting to the Project Coordinator will be co-located in the GAZEDA office in Nacala. The Project Manager will liaise with the various agencies in the Provinces, Municipalities and Districts and coordinate/support day-to-day implementation of the Project activities especially under Subcomponent 3C. The project will support strengthening

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capacity of GAZEDA and will provide support for a SEZ Technical Advisor, a Private Sector Development/Linkages Specialist (who will be the focal point for the IDCF Manager), an Impact Evaluation/Communications Specialist and a Social and Environmental Safeguards Specialist.

Component 2A (expanding water supply) will be implemented by FIPAG, the water supply asset holding agency responsible for investments in urban water supply. There will be a specific Project Agreement signed by FIPAG and a sub-loan agreement signed between FIPAG and the Government. A Designated Account will be opened by FIPAG in a commercial bank.

There will be a specific Project Agreement signed with Fundo de Estradas/Roads Fund (FE) and a sub-loan agreement signed between FE and the Government. A Designated Account will be opened by the implementing agency in a commercial bank. The responsibility for project implementation will be with the FE, the legally autonomous entity for managing the collection and disbursement of road sector funds, while planning and implementation of road works will be the responsibility of ANE, the National roads administration responsible for the management of classified roads in Mozambique.

The Project Steering Committee will be chaired by MPD and consist of representatives from the ZVDA, GAZEDA, MPD, MICOA, MTC, MOPH and MINAGRI. The Steering Committee will meet once every quarter to review Project Progress Reports and provide oversight and support for effective project implementation.

In line with international good practice, a private contractor on a performance-based contract will manage the IDCF scheme. The Fund Manager will be responsible for the effective promotion, implementation, coordination and monitoring & evaluation for each of windows and managing units, along with the management of the Fund’s learning and communication function together with a grievance and conflict resolution functions. The Fund Manager must have permanent presence focus areas of the Facility: the Nacala Development Corridor and the Zambezi Valley, with the possibility of expansion based on market needs. He/she will also be responsible for ensuring that funded projects report on a scheduled basis, and that disbursement and administration of approved grants takes place within the required governance framework. The fund manager will also be responsible for ensuring that evaluation of funded initiatives takes place, with relevant learning captured and communicated. The details of the facility will be outlined in detail in the Project Operations Manual. Details on implementation arrangements, and more particularly on Procurement and Financial Management arrangements, have also been provided as an annex of the project document.

A Project Preparation Advance (PPA) of US$3 million is in place to support the Interim Project Coordination Unit (PCU) and to provide preliminary technical assistance for the preparation of various preparatory studies (including the preparation of the required safeguards documents) and other required design activities.

Given that the activities in Tete are more diverse and spread over rural areas, and the activities supporting the Nacala SEZ are simpler and

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straightforward, both will be based at ZVDA in Tete. The two staff will work as a team to support each other and to back each other up, and will coordinate their activities so that data collection trips and efforts can be leveraged to support both the M&E and the project’s impact evaluations. The two staff will work in partnership with staff at GAZEDA, ZVDA, INE, MINAGRI, and SDAE, to take advantage of and further strengthen existing capacity and resources on this front. The World Bank’s Africa Gender Innovation Lab will provide the technical supervision of the impact evaluations, will work closely with the two staff, and will provide support in a way that builds the capacity of the Government to measure the impact of programs and policies.

This project incorporates impact evaluation as an integral part of the project. This reflects the desire expressed by stakeholders not only to take stock of and review the project’s achievements, but to also identify the underlying mechanisms and constraints affecting its mode of functioning, so as to provide direction for the later wave of catalytic grants issued under this grant, as well as to inform future investments.

The project team and the government will jointly decide which impact evaluation questions are of highest priority. For now, the following possible impact evaluations have been identified: (i) Impact of road improvements on agriculture; (ii) Impact of out grower schemes on smallholder farmers, (iii) Impacts and spillover of impacts of job creation within the Nacala Special Economic Zone, potentially including analyzing the impacts of these jobs on women’s empowerment; and (iv) Impacts of an agricultural extension program designed explicitly to target female farmers. Each impact evaluation that is carried out will require the full cooperation of the entities involved in implementing the interventions being evaluated.

Efforts will be made to set up randomized controlled trial impact evaluations, as these are the gold standard for creating a treatment group and a control group from prospective project beneficiaries. However, where this is not possible, due to political or practical constraints, other rigorous designs will be used as alternatives. For example, regression discontinuity which compares individuals from just above and below a cut-off line; or a matching design that matches each beneficiary within a treated area to a similar person or household in a non-treated area.

The Integrated Growth Poles Project is fully anchored within the strategy laid out in the PARP, which will help to ensure Mozambique’s continuing commitment to the programs laid out in the Project. The Project aims to support programs that will have a long-term impact on private sector development in Tete and Nampula. The support provided to regional, municipal, and district planning will continue beyond the life of the Project. Government authorities have expressed a strong interest in this planning support. In addition, the infrastructure component is also intended to have a long lasting impact on the two provinces.

The public investments supported under the Catalytic Fund will continue to function and support the beneficiary private investments and out-grower farmers after the end of the Project with the potential of transfer of ownership of the assets to the farmers. The investments in strengthening

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the capacity of the public training and standards institutions will also continue to have an impact beyond the Project.

Government institutions to be supported by the Project will continue operating after the Project closes. These institutions include those supported for the spatial and land use planning under Component 3, along with the ZVDA and GAZEDA.

The implementation arrangements under this Project will be established only for its duration; however they will support capacity building within key Government agencies.

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4 DEVELOPMENT CONTEXT IN MOZAMBIQUE AND THE PROJECT AREA

To better understand some of the issues that will determine the design, environmental licensing, implementation and management of the project planned interventions, it is important to briefly make notes of the development context in the country in general, and the project area in particular.

4.1 General Country Development Context and Project Relevance

Mozambique has a total area of approximately 800,000 km² and a population of 20.4 million inhabitants (INE, 2007). Its GDP per capita is estimated at 318 USD. The country is bordered to the east by the Indian Ocean, with which it forms a border of more than 2,500 km that is a major port of entry and exit of goods to the country itself and the hinterland countries bordering Mozambique, namely South Africa, Swaziland, Zimbabwe, Malawi and Zambia. To the north, the country is bordered by Tanzania, which also has direct access to the Indian Ocean. This geographic positioning of the country’s ports has resulted, from the colonial period, in the development of three important corridors in the east-west direction and vice versa, meant precisely to serve neighboring countries. These are the corridors of Maputo, Beira and Nacala, which have railway lines as one of their main components. Other components of the corridors are highways, power transmission lines and communications (see Figure 1).

Figure 2: The main development corridors in Mozambique

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Source: World Bank (2010)

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After about a decade of centralized economy and just over 16 years of armed conflict from the mid-1990s, the Mozambican economy has been recording accelerated growth rates on an annual average of 7% in real terms, which is supported by high levels of assistance from Development Partners. The growth rates result from the efforts in the field of macroeconomic policy management and strengthening the enabling environment for promotion of domestic and foreign private investment. Notwithstanding the effects of external shocks with negative impacts on the economy and society, the country tends to register high rates of economic growth, which is accompanied by a climate of political and macroeconomic stability with average inflation rates in the order of a single digit. Economic growth has been driven by (i) foreign direct investment in mega projects10 and operating large-scale high-value agricultural products such as cotton, sugar and tobacco, (ii) the favorable agricultural growth at the family sector level, and (iii) infrastructure rehabilitation projects, including roads.

However, despite the remarkable ongoing growth progress, the country continues to be among the world's poorest and heavily dependent on foreign aid. The most recent rating by the United Nations11 indicates that Mozambique is in the 184th position among 187 countries in terms of human development index. A number of institutional constraints and other constraints continue to hamper the delivery of basic services (including water supply, sanitation, education and health services) and there are many challenges that remain. In 2010, MPD published data indicating that between 2002-3 and 2008-9 there was a slight increase in the incidence of poverty (consumption), which rose from 54.1% to 54.7%. Rural poverty was the worst in that regard although in recent years urban poverty is increasingly becoming a serious concern.

The Government intends to implement a second set of structural reforms that will take advantage of the prevailing macroeconomic climate. The main targets of these reforms are: (i) the public sector, (ii) fiscal policy, (iii) governance and, (iv) the business environment, including the creation of an enabling environment for the establishment and development of small and medium-sized enterprises (SMEs).

More recent analyses have highlighted the fact that the Mozambican economy is characterized by a very small number of mega projects on the one hand, and the family and informal sector, on the other. This presents itself as encouraging imbalances in development and particularly with respect to the diversification of production and access to the benefits of the development by a significant proportion of the population12. Among other things, investments in infrastructure such as roads, water supply and sanitation, energy, telecommunications, etc. should continue to play a role in this process of stabilization and gradual elimination of imbalances.

10 e.g. Aluminium Smelter (Mozal), gas exploration (SASOL), Moma heavy minerals and coal in Tete province for a number of actors.11 UNDP (2011) “Human Development Report 2011, Sustainability and Equity: A Better Future for All”12 Carlos Nuno Castel-Branco (2008) "The Mega Projects in Mozambique: What Contribution to National Economy?" Civil Society Forum on Extractive Industries, Natural History Museum (Maputo), 27 and 28 November 2008.

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Strengthening small and medium size enterprises (SMEs) is seen as key to changing the prevalent situation.

SMEs (both formal and informal) represent about 98.6% of all enterprises, employing 43% of the workers and accounting for 76% of the total sales. Trade and service sectors form the bulk of business units, with commerce and retail businesses accounting for close to 60%, restaurants and accommodation 20% and manufacturing less than 10%. Most of these SMEs typically grow informally and as a reaction to immediate market deficiencies.

Studies show that despite the SMEs’ importance in national economic development and poverty alleviation they lack growth perspectives, due in part to the entrepreneurs’ and workers’ poor education and training skills, cumbersome regulations, high cost of credit and poorly developed basic socioeconomic infrastructure.13 As a result, local entrepreneurs tend to diversify into a large number of relatively small and uncompetitive businesses rather than grow promising small businesses into large ones that could reach out to more people and offer more income generation opportunities (job creation, gender mainstreaming, etc.).

In 2007, the government approved the “Strategy for the Development of Small and Medium Size Enterprises in Mozambique.” The strategy underscores the central role SMEs are expected to play as drivers of employment, competitiveness, diversification and innovation, including SMEs’ role in mobilizing social resources. The strategy relies on three major pillars:

Improve the business environment for SMEs Strengthen SMEs’ technological and management capacities

(capacity building) Give strategic support (e.g. to exporters and high-tech firms, etc.)

The reduction of transaction costs for SMEs is also given high priority. Among other provisions, the strategy introduces the notion of a ‘negative licensing system’, which means that any SME that applies for a license is automatically licensed unless the competent authority explicitly objects the application for justified reasons. It also advocates simplification of the arbitrary inspection and tax systems. The subsequent “Strategy for Improving the Business Climate”, approved in 2008, deals with these issues in more detail.

Another aspect that needs to be addressed in the Mozambican economy has to do with the fact that due to historical factors a significant number of development sectors (roads, railways, energy, telecommunications, etc.) have focused mainly on serving the region in detriment of domestic needs. The largely functional corridors of Maputo, Beira and Nacala, which link Mozambique to South Africa, Swaziland, Botswana, Zimbabwe, Malawi and Zambia, respectively, are a good illustration of this phenomenon.

These three corridors have efficient railways and road facilities including telecommunications and energy that are in dire contrast with the only and

13 M. Krause and F. Kaufman, “Industrial Policy in Mozambique”, 2011.

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deficient road linking the south to the north (N1) of the country. More internal roads and corridors could play a crucial role in revitalizing the domestic economy, and ultimately with tangible impacts on the regional economy as well.

Under such a context, the project is highly relevant. Through its four major components, it will support government’s efforts in the establishment of the necessary infrastructure network, pilot and demonstrate viable socioeconomic interventions, assist in capacity building and provide adequate monitoring and evaluation mechanism that will benefit the project areas in particular, and country as a whole.

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5 - PROJECT TARGETED AREAS 5.1 Location

In broad terms the project area comprises two important Mozambican clusters in the central and northern regions, namely: (i) the Zambezi Valley; and (ii) the Nacala Corridor.

(i) The Zambezi Valley covers 35 districts in the four provinces of Tete, Manica, Zambezia and Sofala and as shown in Figure 2, below.

In the four provinces the 35 districts falling under the Zambezi valley are:

Manica Province: Bárue, Guro, Macossa and Tambara; Sofala Province: Caia, Chemba, Cheringoma, Gorongosa, Maríngue,

Muanza and Marromeu Tete Province: Angónia, Cahora Bassa, Changara, Chifunde, Chiúta,

Cidade de Tete, Luenha, Macanga, Mágoe, Marávia, Moatize, Mutarara, Tsangano and Zumbu;

Zambézia Province: Morrumbala, Mopeia, Chinde, Milange, Mocuba, Maganja da Costa, Namacurra, Inhassunge, Nicoadala and Quelimane.

Figure 3: The Districts of the Zambezi Valley

(ii) Nacala Corridor covers 12 districts from, traditionally, the two provinces of Niassa and Nampula and now Tete, due to the current extension of the Corridor to Moatize from where the coal originates and is planned to be exported through Nacala.

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In the three provinces the 12 districts falling under Nacala Corridor are:

Tete Province: Moatize Niassa Province: Mecanhelas and Cuamba Nampula Province: Malema, Ribaue, Nampula (Rapale),

Nampula City, Meconta, Monapo, Mossuril, Nacala-a-Velha and Nacala Porto.

Figure 4: The Project districts in Nacala Corridor

Within these two broader clusters, the project will focus on a limited number of areas and districts. Within the Zambezi Valley, focus will be on Tete Province, on the Angonia growth pole, comprising the districts of Angonia, Tsangano, and Macanga districts.

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Figure 5: Angonia growth pole

While in Nacala Corridor the project will focus on the Nacala growth pole (Nacala SEZ), covering the districts of Nacala Porto and Nacala-a-Velha both in Nampula Province.

Figure 6: Nacala growth pole

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In Tete province the project will target increasing agricultural production and processing, while in Nampula it will target light manufacturing and logistics.

This initial definition of the project boundaries may be refined as more spatial details become available.

5.2 Physical Environment5.2.1 The Zambezi Valley (Tete, Manica, Zambezia and Sofala Provinces) and Angonia Growth Pole

Geology

The geology of the mentioned provinces above is comprised by 3 periods: The Achaean, Proterozoic and Phanerozoic.

Achaean Era comprises rocks older than 2 500 Ma, and typically consists of supracrustal greenstone belts surrounded by granitoid-dominated basement complexes. Rock units in Mozambique, which were demonstrated as belonging to this age period, include small exposures of paragneiss and tonalite, as well as more extensive units forming the Manica Group, the Munhinga Group, the Mavonde Complex and the Mudzi Complex.

The Manica and Munhinga groups are typical of supracrustal greenstone belts, whereas the Mavonde and Mudzi complexes represent granitoid basements. The Manica and Munhinga groups overlie the granitoid dominated by Mavonde Complex.

The Proterozoic Era extends from 2 500 Ma to 550 Ma. In the area, lithostratigraphic units which fall into this time period include the Rushinga Group, the Gairezi Group and the Chíduè Formation, Zâmbuè Supergroup, Fíngoè Supergroup, Báruè Complex, Chimoio Group, Mualádzi Group, Angónia Group, Chidzolomondo Group, Cazula Group and Nampula Supergroup. In the field, the most important rocks are two mica gneisses, silimanite gneisses and leucocratic quartz-feldspar gneisses.

The Proterozoic rocks extend to the foliated and unfoliated granitoids distributed along the area, forming the most prominent iceberg.

The geology of Phanerozoic is complex and could be simplified by the Sedimentary basins along the Zambezi River trend and volcanic all from de Karoo and the rest of post karoo sediments.

The most important rocks of Karoo age are found in Moatize Basin, Mucanha-Vúzi Basin and Zumbo area. Sandstones, mudstones and coal are the most important rocks units.

The economic geology of the Zambezi Valley is characterized by coal, gold, iron ore, and gems stones from pegmatite and dimension stones.

Soils

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The soils in the four provinces are directly linked with the geology. In the crystalline and Proterozoic terrain, the soil is classified as Franco-Clayey-Sandy reddish with lighter surface layer, depth variable, and intermediate fertility and susceptible to erosion.

Some patches of thin soils and shallow, rocky and unsuitable for agriculture are located in the Zambezi valley.

The southwest soils (Manica and Tete) have the predominance of Franco-Clayey-Sandy Brownish whose fertility evolved from intermediate to good, few spots of very heavy soils, gray and black and poorly drained soils can be found. To the east, Sandy Soils and immature coastal dunes area found.

The soils in the three districts of Angonia growth pole are deep to moderately deep with a strong water retention capacity and consequently very fertile.

Climate

For the highest altitude of Tete14, Manica, Sofala and Zambezia Provinces, the rainfall vary from 800 to 1200 mm and is the most productive zone in terms of agriculture and thus it is densely populated. The three districts forming the Angonia growth pole in northern Tete province, namely Angonia, Tsangano and Macanga are the most productive in terms of agriculture.

Specifically for the southern zone of Tete Province, including the districts of Changara, Cahora-Bassa, Moatize, Mutarara, Tete City and Chiúta the annual rainfall is around 600 mm, and is the poorest in terms of agriculture.

The Tropical Dry Climate, which occupies a small strip to the left of the Zambezi River and the entire region to the right except for a small strip in Mutarara district has an average annual maximum temperatures of around 32° C and the maximum rainfall of 180 mm.

The Climate Modified by Altitude covers entirely the high altitude areas and the average maximum temperatures is around 26° C with a maximum average precipitation of approximately 360 mm. In the Angonia growth pole specifically the annual mean temperatures is around 20° C. During the cold season these oscillate between 14 and 16° C.

The Humid Tropical Climate occupies all costal line of Zambezia and Sofala. The annual temperature varies from 25 to 35° C, with the minimum temperatures observed in June/July and maximum in January/December and maximum precipitation of 250 mm in January.

Hydrology and Water Resources

The four provinces, Manica, Sofala, Tete and Zambezia are gneissic and granitic in terms of terrain, except the costal districts and the karoo areas. 14 This includes the three districts within the Angonia growth pole, i.e. Angonia, Tsangano and Macanga.

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The soil profile, main faults, inclination of the topography and deep weathering control the water resources and reserves. The area has a potential of surface and underground water. The fist is more important in the costal line as the sand dunes accumulate enormous quantity of ground waters. The ground water is also encountered in the major faults and deep weathered granites and light gneisses and for the good location and exploitation, geophysical studies must be completed in the professional manner.

The surface water is controlled by tree major rivers and two artificial lakes (Cahora Bassa and Chicamba Real, in Tete and Manica Provinces, respectively). Three hydrographic basins are known: The Shire, Zambezi and Pungue. The most important rivers in the region are Zambezi, Luia, Luenha, Shire and Pungue.

The three districts forming the Angonia growth pole have a series of small rivers, which contribute significantly for the wealth of water resources in the region. Tsangano is the most endowed in this regard. It has the following main rivers Calidzipiri, Lhangue, Chiritse, Nhamanzi, Mphonfi Maavudzi and Modzi.

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

Geology

A limited Phanerozoic rocks, located in Nacala Porto and Nacala-a-Velha Districts, characterize the Nacala Corridor. The representative rocks in this area are limestone and sandstones.

The rest of the territory is comprised of Proterozoic rocks of Nampula, Unango, Marrupa, Monapo and Ocua Complexes.

In all the complexes, the older rocks are composed of high and cyclically deformed and metamorphosed gneisses of various origins and evolutions. The most relevant characteristic of these gneisses is the low topographic fractures. An elongated E-W hill and concordant foliation is the second characteristic of the described gneisses. The rocks vary from dark two mica gneisses to leucocratic quartz-feldspatic gneisses. The late Proterozoic rocks of this area are composed of under formed granites of Murrupula, Malema, Ribawe and Niassa Suites.

The economic geology of the region is characterized by the presence of limestone for cement, in the Nacala region and frequent mineralized pegmatite with gemstones and rare earth elements in the Proterozoic terrain. Presently, Iron is being exploited in Ribawe District. Unsuccessful prospects of Uranium have been located at Niassa Suite. Gold rush has been identified in most places, from deep weathered quartz pegmatite veins in the gneisses (Murrupula and Marrupa Districts).

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Soils

The area is divided in two terrains, the western terrain was formed as a consequence of alteration of crystalline rocks and the eastern formed as the result of sedimentary rocks. The coast of Nacala Porto, Nacala-a-Velha, Mossuril is characterized by light soils - clayey sand, brown well-drained, stratified alluvial soils and coarse textured, yellowish sandy soils with good to excessive drainage.

The western land is predominantly constituted by medium textured red soils and clay grayish brown soils from low to moderately weathered rocks. These soils are red clay soils, characterized by depth and high retention capacity for water. Most of the cotton farms are found at these areas in the Nampula and eastern districts of Niassa. Cassava, maize, potatoes, tobacco and varieties of bens are also produced in these soils.

The river valleys are dominated by alluvial soils (fluvisols), dark, deep, heavy texture and average to moderately drained, subject to regular flooding (FAO, 1995).

Climate

In the Provinces of Nampula and Niassa, are known two types of climates: tropical humid climate and tropical climate modified by altitude.

The Humid Tropical Climate occupies all Nampula and eastern sector of Niassa Province. The annual temperature varies from 25 to 35 ° C, with the minimum temperatures observed in June/July and maximum January/December and maximum precipitation of 250 mm in January.

The Climate Modified by Altitude is observed at Lichinga region with annual average maximum temperatures of around 26 ° C and a maximum average precipitation of approximately 360 mm. The average monthly temperature in warmer months: October, November, December, January and February is around 28-29 ° C and in the coldest months, June and July of 22 ° C.

Hydrology and Water Resources

The two provinces, Nampula and Niassa are gneissic and granitic terrain, except the costal districts. The soil profile, main faults and deep weathering, control the water resources and reserves. The area has a potential of surface and underground water. The later type is predominantly found in the major faults and deep weathered granites and light gneisses and for exploration, geophysical studies must be completed in the professional manner.

The surface water is controlled by two major rivers and several lakes in the western limit of Niassa Province. Two hydrographic basins are known: The Lúrio, in the South and Lugenda in the west.

From east to west the Monapo, Mecuburi, Mepuiqui, Lalaua, Malema, Lurio, Muandas, Lugenda Rivers are the most important, flowing during

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the whole year. Most of these rivers flow from high to low altitude, giving a potential of hydropower projects in the area, as projected in Malema District. The Amaranba, Niassa and Chiuta Lakes are the biggest lakes within the area.

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5.3 Biological Environment

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

Land use and Land cover

The vegetation of Tete Province along the Zambezi River and Cahora Bassa Dam is mostly dominated by tall (>12 m) and largely mono-specific Mopane woodland, extending across the Zambezi in the east. In some area along the river banks there are stands of Lonchorcarpus capassa, Lannea, Sclerocarya, Combretum imberbe, Ziziphus mucronata and Adansonia digitata and Dispyros melispiformes. North of the river and dam, Acacia nigrescens and mixed woodlands occur in low laying areas and tall Brachystegia woodland on higher grounds in the north east.

The low land palm savanna occupies areas of Mopeia district and consists of Borrassus aethiopicum with Terminalia sericea, Kiggelia pinnata. Maytenus sp., Annona senegalensis, Diplorhynchus condylocarpon, and Hyphaene crinite.

The dry deciduous woodland is widespread in Tete province and with stands of Brachystegia bohemii it co-occurs with Julbernardia globiflora. The western areas of Zambezia Province the Brachystegia bohemii occurs with Brachystegia spiciformis, Adansonia digitata and Sterculia communities of the Shire valley.

The semi-decidous miombo occupies areas of north of Sofala and Manica Provinces at altitudes between 600 and 900m and the woody species are Brachystegia spificiformes, Julbernardia globiflora, B. bohemii, Pterocarpus angolensis, Pilistigma thonningii, Swartzia madagascariensis, Dombeya sp, Burkea Africana, Vitex payos, Cussonia spicata and Milletia stuhmannii.

Protected areas and areas of Biological Importance

The network of protected areas in the Zambezi valley include the Gorongoza National Park (in the Rift Valley), which has 5,370 square kilometers and the Marromeu National Reserve located in the floodplains of Zambezi Delta which has a surface of 1500 square kilometers. The greater Marromeu Ramsar Site, proclaimed after signing the Ramsar Convention encompasses the Marromeu National Reserve and the hunting concession areas number 8 (310 square km), Number 10 (2000 square km), Number 11(1930 square km), Number 12 (2960 square km), number 14 (1350 square km) and Number 15 (2300 square km). These hunting concession areas are locations of concentration of large and medium size mammals (zebras, buffalos, wild beasts, lions, kudu, waterbucks, elands, hartebeest, warthog, reedbuck, leopards and elephants among other species).

The Rift valley floodplain cover most of the Zambezia and Sofala Provinces and include the river and lake Urema, Pungue River, Zambeze River and is dominated by a variety of aquatic habitats which include the submerged

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aquatic vegetation (Ceratophyllum demersum, Lagarosiphon spp,. Potamogenon spp., Najas interrupta, Otellia esserta), floating vegetation (Azzola nilotica, Eichhornia crassipes, Lemna sp, Pistia stratiodes, Wolffia spp. and Trappas natans), herds include Nimphaea capensis, N. carulata, N. indica, Ultracularia stellaris, Alternanthera sessiles, Ipomoea stolonifera, Marsilia minuta and Neptuna olaracea) and grasses (Echinochloa pyramidalis, Echinochloa stagnina, Oryza longistaminata, Paspalidium obtusifolium, Vassia cuspidata) and emergent aquatic vegetation which include the species Cyperus indica, C. digitatus, Cyperus papyrus, Sesbania mossambicensis, Sesbania sesban, Phragmithes mauritiana and Typha sp).

Lake Cahora Bassa, is a deep water artificial lake, forming a large fresh water pelagic environment along mountain ridges. Its fish diversity consists of 54 species belonging to 16 families. There is also Lake Urema in the Gorongosa National Park.

The tchuma-tchato wildlife area located south of the Tete province near the border with Zimbabwe is known as an area of large abundance of mammals in the mopane woodland. Buffalos, Rhinos and other species occur in this area, such as the wattled crane, which is globally endangered.

In Zambezia Province the areas of biological importance include the Derre Forest reserve, which occupies a surface of 170000 hectares. In Sofala Province the Nhamitanga Forest Reserve (1067 hectares) and the Nhampakwe forest reserve (17hectares) are some other areas of biological importance

Of special relevance in the Zambezia Province are the Namuli Mountains and the Mount Mabu, which have been recently discovered as areas of high endemism of amphibians, reptiles and birds in the Gurue District.

The mangroves of Zambezi River Delta system are the largest know in Mozambique and comprise an area of biological importance.

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

Land use and Land cover

Most of the area along the Nacala Corridor from Nacala, Monapo, Namialo, Macuburi, Nampula, Ribawe, Cuamba and Mandimba has been extensively modified by agriculture. Extensive familiar agriculture for crops such as cassava, peanuts, maize, beans, and for cash crops such as cotton and orchards of cashew trees and other fruit species are common. The land cover of the Mandimba district at the western part of the corridor consists of highlands and swamps from Lake Chilwa. The vegetation cover consists of Decidous dry Miombo, with a coastal mosaic of baobab woodland which is the belt comprised by Adansonia digitata, Sterculia appendiculata, Pteleopsis myrtifolia and Milletia stuhlmanii, Brachystegia sp. in the east. There is also a coastal strip consisting of trees Androstachys jonhsonii (mecrusse), Icuria dunensis, (a recently described species in 2000), Afzelia quanzensis, Albizia forbesii, Albizia glaberrima, Balanites maughanii,

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Brenabiodendron carvalhoi, Fernandoa magnifica, Lannea sp, Markhamia obtusifolia, Mimusops caffra, Monotes sp, Ozoroa sp Schrebera trichoclada and Sclerocarya birrea. Hymenocardia ulmoides is the dominant shrub species.

To the west towards Nampula the vegetation consists of high rainfall moist miombo type found at Mecuburi forest reserve which is the Brachystegia woodland, dominated over large areas by Brachystegia spiciformes, sometimes co-dominated with Julbernardia globiflora. Other dominant species occurring are Brachystegia bussei, Brachystegia boehmii and Brachystegia utilis. Typical species fairly frequent are Afzelia quanzensis, Burkea Africana, Combretum molle, Combretum zeyheri, Cordyla Africana, Crossopteryx febrifuga, Dipllorhynchus candylocarpon, Erythina livingstoniana, Hyphaena petersiana, Lannea stuhlmanii, Maprounea Africana, Milletia stuhlmanii, Olax dissitiflora, Piliostigma thonmingii, Pterocarpus angolensis, Strychnos madagascariensis, Strychnos spinosa, Sclerocarya birrea, Terminalia sericea, Uapaca kirkiana, Uapaca nitida, Schrebrera trichoclada and the bamboo Oxystenanthera abyssinica.

The shrub layer or small trees consists of Annona senegalensis, Cleistochlamys kirkii, Dalbergia melanoxylon, Deimbolia sp., Dielsiothamnus divaricatus, Flacourtia indica, Grewia sp. Hollarhena pubescens, Hugonia orientalis, Monodora grandidieri, Monodara junodii, Ochna sp and Vangueria infausta. Toward high water table plant species are Gardenia ternifolia, Parinari cutarateifolia, Syzygium guinensee and Combretum sp.

The other vegetation types found at M’palue and Ribaue forest consists of semi-decidous miombo forest dominated by trees species Julbernardia globiflora, Uapaca, Sterculia and stands of bamboo (Oxytananthera sp). Galery forests occur along the rivers and are composed by trees Milicia excels, Xylopia sp., Harrungana madagascariensis, Trema orientalis, Breonardia salicina, Syzygium owariense. Mountains slopes patches consist of closed canopy forest mixed with bamboo

Decidous woodland (near Cuamba) consists of Brachystegia boehmii, B. utilis and Julbernardia globiflora with Faurea, Cussonia, etc. In grey loam it is accompanied by Burkea Africana, Erythrophleum africanum, Psedolachnostilis maprouneifolia, Diplorhynchus condylocarpon, Swartzia madagascariensis, Lonchocarpus, Combretum and Ostryderris spp. In grey clay soils the transition is to Sclerocarya birrea, Lonchocarpus capassa, Kigelia Africana, Albizia Harvey. Acacia species (Acacia polyacantha, Acacia rehmanniana, Acacia sieberiana and Acacia nigrescens) occur in low alluvium poorly drained soil including species such as Ficus sp, Albizia harvey and Albizia versicolor.

Dambos vegetation occur on the basement of the inselbergs in rhodic ferrasoils and chromic ferrasoils), but also in haplic lixisoils and haplic ferrasoils

In Nampula the main economic activity is agriculture. However, there are some closed woodlands of semi-decidous miombo at the Administrative posts of Mutivane, Rapale, Anchilo and Namaita. In these woodland there are timber tree species of Milletia stuhlmanii, Afzelia quanzensis,

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Pterocarpus angolensis, Dalbergia malanoxylon and Androstachys johnsonii. The wildlife is diverse and includes monkeys, bush pigs, reptiles, duikers and crocodiles as well as several bird species. The agriculture area is about 68 thousand ha. The main staple food crops are maize and cassava. These are complemented by cash crops such as cashew, cotton, tobacco, peanuts and vegetables. Environmental problems of Nampula district are erosion in urban areas and deforestation as well as excessive exploitation of forest and wildlife resources. Wood and charcoal has been exploited for domestic consumption.

In Ribawe, the agriculture consists of 35 thousands plots occupying 34% of the district area. Three agriculture systems are practiced: the first consist of low highland farming where cassava, maize and beans, but also rice in the dambos are cultivated. The second system cultivates essentially sorghum, occasionally mixed with cassava and maize. Cotton is the predominant cash crops. However, recently there has been an increased production of tobacco, which seems to be replacing cotton production areas. The livestock breeding is under developed at present, but was very important in the past (before independence). Several species of timber occur in the district including pod mahogany (Afzelia quanzensis), teak (Pterocarpus angolensis), mecrusse (Androstachys johnsonii), panga-panga (Milletia stuhlmanii), black ebony (Dalbergia melaxylon), among other species. Timber is used locally in the construction. Ribaue district has deforestation problems around the district capital because of use of domestic firewood. Local mining industry used to exploit a mineral (cauline), which currently is not operational.

In Cuamba, there are three types of agriculture the one on the highlands consisting of maize, cassava, beans and peanuts, the second consisting of sorghum (mapira) consociated with cassava and maize and the third agriculture type consists of cotton, which is the main cash crop. Wood and timber are exploited and the district has some serious level of deforestation. There are 35 thousand agriculture plots occupying only 16 percent of the district area. Livestock breeding is less practiced, targeting goats and fowls.

Mecanhelas district has as undulating relief with inselbergs and dambos. The vegetation consists of dry miombo, with few dambos at the valleys of the inselbergs.

Agriculture is the main economic activity carried out by the family sector. Three systems are practiced: the farming in the highlands for maize, peanuts, cassava and beans. The second system consists of rice farming at the valleys on modified dambos. The third farming system consists of cotton farming. The district has 32 thousand farming plots occupying 21% of the district area.

Hunting of wildlife (reedbuck, duikers and hares) and fishing in the river waters are the supplemental activities of the population.

Protected Areas and Areas of Biological Importance

The Nacala Corridor has a network of forestry reserves, which include Mecuburi (195 400 ha), Matibane (4200 ha), which protects Incuria

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dunensis species, Mplawe (5100 ha) and Ribawe (5200 ha). All were gazetted in 1950 to ensure preservation of mosaics of natural vegetation as the areas along this corridor is extensively modified for agriculture. Other areas of Biological importance at the western end of this Corridor are Lake Chilwa and Lake Amarambas (at Mandimba), which drains the water into Lugenda River. Lake Amaramba has a surface of 4350 ha of open water and 4,000 ha of swamp and lies 635 m above sea level. Lake Chilwa , at an altitude of 622 m above sea level, covers an area of 185,000 ha including its lacustrine swamp which extends into Mozambique.

The Lake Niassa contains exceptional biodiversity of endemic fish species (191 species from 22 general species described) of cichlid family. The number of species known consists of 320 species of eight fish families. The wetlands around these two lakes are habitat for amphibians and migratory water birds. The Shire River and the marshy alluvial plains (called elephant swamp) areas are also areas of biological importance adjacent to Lake Niassa. The upstream Lugenda River and the Entrelagos region are areas of biological importance as well.

The mangroves and coral reefs of Nacala Harbor are also areas of significant biological importance.

5.4 Socio-economic Situation

As shown in Tables 1, and 2 (below) the entire targeted project area represents roughly 7,104,366 inhabitants, i.e. close to 36% of the overall country’s population, in 2007.

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

The Zambezi Valley occupies an area of approximately 225,000 Km2, which represents around 27.7% of the country’s surface. It has a population of 5,011,892 inhabitants, which is close to 25% of Mozambique's population, 56% of the population of the 4 Provinces in the Central Region that forms the Zambezi Valley (Table 1).

A wide variety of soil, subsoil, climate and energy production resources can be found in the region.

With the exception of Tete province the central region is known for contributing significantly to the phenomenon of increased poverty in Mozambique. Actually, recent data published by MPD (2010) indicate that between 2002-3 and 2008-9 there was a slight worsening of poverty incidence (consumption), which decreased from 54.1% to 54.7%. This is accompanied by gender disparities and other social imbalances under which women, the elderly and people with disabilities are hardest hit.

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

However, in Tete the incidence of poverty declined significantly which may have to do with the increased access to employment associated with the emergence of large economic enterprises in the region. In the last 5-6 years, Tete province, with particular emphasis on Tete City and Moatize town, has been witnessing an accelerated growth. Tete/Moatize and the Zambezi Valley in general have come to the limelight recently for possessing one of the largest and richest coal deposits in the world (coal-iron). In addition to coal, the region has significant deposits of natural gas, rare metals, such as niobium-tantalum, gold, fluorite, tin, heavy mineral sands and pegmatite minerals. In addition to the re-development of the Moatize coalfields, a number of mining projects have been identified and are expected to be developed in the years to come. Mining related projects will form the anchors around which developments in other areas such as agriculture, tourism, industry, etc. will have the chance to flourish. Some of these developments are already happening and they can be easily seen in and around Tete city and Moatize town.

The Zambezi River valley has huge potential for agricultural and agro-processing development. The region has 5.5 million hectares of arable land, making up about 15% of Mozambique’s total arable land. Of this, about 2.5 million hectares have potential for intensive farming. The total potential of irrigated land is estimated at about 1.5 million hectares, which makes up about 45% of Mozambique’s total irrigation potential.

The Angonia growth pole formed by Angonia, Tsangano15 and Macanga has the richest natural conditions for the practice of agriculture in Tete province and occupy a privileged position in the entire Zambezi Valley in particular and Mozambique in general. Due to their natural wealth for the practice of agriculture, Angonia and Tsangano, in particular, have witnessed the development of commercial farming since the colonial period. After independence in 1975 most of the farms owned by the colonial settlers were transformed into state16 and/or cooperative farms. Eventually they collapsed due to a combination of factors. It was during the 15 Tsangano district came into being after it was split from Angonia district following the restructuring of districts in the 1990s.

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colonial period and during the years shortly after independence that most of the agricultural infrastructures, including most of the small dams were built, particularly in Angonia and Tsangano.

Macanga district is relatively pristine. In spite of also being considerably endowed for the practice of agriculture at the same level as Angonia, Tsangano the area has remained relatively dormant over the years. This offers a series of opportunities and challenges, which PROJECT and its stakeholders will need to capture and work upon creatively.

The three districts represent around 32% of the population in Tete province. With a population density of 91 and 44, Angonia and Tsangano districts, respectively, are among the most densely populated in Tete province and the country in general. This can be seen as a reflection of their strong economic potential. Conversely, high population densities in these three districts also mean that land can be relatively scarce when seen from a certain perspective, notably when reference is made to cleared land close to basic amenities such as roads and markets. Angonia and Tsangano are known for having considerable land disputes in some of its areas. Local authorities indicated that at present the size of plots in the hands of emerging indigenous commercial farmers is of 15 ha in average. They foresee that it will be difficult to find bigger plots in the traditional areas. The solution would be to open up new areas. However, the steep nature of the terrain in the three districts can be expected to come as an obstacle in materializing this.

The government has established the Zambezi Valley Development Agency (ZVDA) to coordinate the development of this important Valley. It has also established a series of development initiatives targeting the region in an attempt of realizing its potential, namely: Sustainable Irrigation Project (PROIRI), Market-Led Smallholder Development Project in the Zambezi Valley as well as other private sector initiatives that cover agriculture, water supply, sanitation, housing, tourism, education, etc.

16 CAIA – the agricultural and industrial agro-industrial complex of Angonia is one of the most well-known state enterprises even developed in Mozambique.

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Table 1: Population of the Zambezi Valley by districts

Project Region Provinces Districts PopulationZambezi Valley Tete Angónia 298.815

Cahora Bassa 86.641Changara 156.545Chifunde 100.243Chiúta 75.410Cidade de Tete 155.870Macanga 110.873Mágoè 68.852Marávia 82.874Mutarara 207.010Tsangano 169.392Zimbo 56.350Moatize 215.092Luenha 31.249

Manica Báruè 137.352Guro 68.347Macossa 27.187Tambara 41.775

Zambézia Chinde 119.898Milange 498.635Mopeia 115.291Mocuba 300.628Maganja da Costa 276.881Namacurra 186.410Inhassunge 91.196Nicoadala 231.850Cidade de Quelimane 193.343Morrumbala .913

Sofala Caia 115.612Chemba 63.981Gorongosa 117.129Maringué 75.135Cheringoma 34.093Muanza 25.225Marromeu 117.795

Total 5,011,892Source: INE (2007)

Despite the climate of growth and economic prosperity, Tete Province, which is now the epicenter of the Zambezi Valley, is, in terms of Human Development, a province with high poverty rates and a low rate of coverage of water supply and sanitation (HDI report, 2005). With an HIV prevalence of 14 percent, Tete Province is one of the hardest hit by HIV/AIDS in Mozambique. The national average is 16 percent among adults (DPS Tete, 2007). In 2006, cases and mortality associated with HIV/AIDS increased by

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34.6%. There are reasons to believe that the huge influx of people to the province related with the mining operations is aggravating these figures. No official estimates have yet been made available but the current aggravated trends in HIV/AIDS prevalence in the province can be expected to affect future economic development of the province. However, in education, Tete province is above the national average. Linked with the increased job opportunities a series of education institutions have been established and/or expanded in Tete covering all levels and a multitude of technical and professional subjects.

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

The current geographical structure of the Corridor has its point of origin in the western province of Tete precisely in the Moatize district. It moves into the west-east direction towards the border with Malawi in the area of Kambulatsitsi for about 200km, after crossing the Malawian territory, to successively cover the provinces of Niassa and Nampula, flowing into the coastal zone, in Nacala (Nacala Porto and Nacala-a-Velha). As seen from the table below, the districts in Nacala Corridor represent 2,092,471 people or close to 10% of the country’s population (INE, 2007).

Table 2: Population of Nacala Corridor by districts

Project Region Provinces Districts Population

Nacala Corridor

Niassa Cuamba 184.773Mecanhelas 156.885

Nampula

Cidade de Nampula 471.717Malema 164.898Meconta 154.843Monapo 304.060Mossuril 116.301Nacala Porto 206.449Nacala-a-Velha 88.807Rapale 57.491Ribáuè 186.250

Total 2,092,474

The 3 provinces and 12 districts that form the Corridor are part of the 11 provinces and 147 districts under which Mozambique is administratively organized. In some cases, the provincial boundaries and to a certain extent the district define distinct ethno linguistic groups, which is not the case in others. A brief description of the Corridor by regions is presented below.

Tete Province

The stretch of the Corridor located in Tete Province pertains to the district of Moatize and crosses three administrative posts: Moatize and Kambulatsitsi Zóbue. The railway line from Moatize to Malawi is planned to

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originate from Moatize Town and follow along the existing rail line to Kambulatsitsi to then continue from there to Zóbue Town, on the border with Malawi. In total, it will extend for approximately 63 kilometers, in Tete province. According to CFM/current planning it is very likely that there will be many more railway lines originating from Moatize/Tete using the Nacala Corridor or parallel to it, e.g. Chiuta-Nacala and Nhamayabwe-Nacala.

The province of Tete, in central Mozambique, has an area of 97,285 km² and a population of 1,783,967 inhabitants (INE, 2007). The results of the 2007 Census also indicate that between 1997 and 2007, the province had a population increase of nearly 43.5%. In addition to its political stability, which, among other is reflected in the fact that from 1994, the year of the first democratic elections to the latest two elections (2008 and 2009), the province went from a majority supporting RENAMO to FRELIMO in a peaceful way. The growth trend in the province is rather associated with several others factors, such as its economic potential and the recent mega-investments in the coal mining sector (Vale, Rio-Tinto, Jindal, Coal India, Reddys Global Industries, Lda, King Ho, etc.) pouring in the province. With this ongoing growth trend, Tete Province17 has moved within a decade from the fifth (1997) to the third (2007) most populous province in the country.

The province shares borders with Malawi, northeast, Zambia to the east, Zimbabwe and Sofala and Manica in the south. It is thoroughly crossed by the Zambezi River and is in its middle it has Cahora Bassa, which is among the largest dams in Africa with a lake-size reservoir. The three districts that form the Angonia growth pole share border with Malawi. This has had a strong economic and social significance. Among other factors, Malawi has offered alternative markets for the products originating from these districts at the same time that it has been a source of land and natural resource conflicts as land and natural resource deprived Malawians increase their presence in the districts looking for land and natural resources.

The Province was severely affected by the civil war that ended in 1992. The insecurity caused by war left marks that are still present, as exemplified by the anti-personnel mines left in the ground, the rural exodus towards urban areas, especially to the city of Tete and thousands of refugees in neighboring countries (Malawi, Zambia and Zimbabwe). The new situation of political stability and security, as well as the climate of economic prosperity has led, in recent years, to the gradual return of much of the refugee population.

The growth is mainly due to two factors: the natural population growth, coupled with the effects of the aforementioned internal and external migration flows that are stimulated by the climate of economic prosperity of the province. However, despite this rapid population growth, the population density of the province (18.2 hab./km2) is still below the national average (25.8 inhabitants/km2).

Although the agriculture, forestry and fisheries are the activities that occupy most of the population of the province, it is the energy sector through the hydroelectric Cahora Bassa, which represents the greatest

17 - The provincial capital is the city of Tete, that lies at about 1,570 km northwest of Maputo City

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contribution to the GDP (Gross Domestic Product) of the Province. INE data for 2008 estimate that this contribution exceeded 40% in 2007.

Agriculture is the main economic activity of the province. This activity is carried out mainly by the family sector and although it is oriented to the livelihoods of smallholder sector it is also characterized by the production of cash crops (mainly tobacco18, cotton and paprika) that contribute significantly to agricultural profile of the province and the livelihood of families. Examples of this type of agriculture can be found in the districts of Angónia, Tsangano, Maravia, Mutarara and Moatize. These districts are also highly productive in food crops such as maize, beans, wheat and a series of vegetables. Angónia and Tsangano in particular are net producers of potatoes, which are sold country-wide and also exported to Malawi.

Underdeveloped agricultural markets form one of the biggest constraints to increasing agricultural production and deriving benefits from this activity to develop the country and the well-being of the producers and local communities. Poor roads, lack of storage facilities, absence of processing units work as disincentives for producers. In the same way as other rich producing areas spread throughout the country, in many parts of Tete province, including in the three districts that form the Project area Angonia Growth Pole, it is common to see people trying to sell their produce directly to potential buyers on the streets. A maize and wheat-processing unit is in the process of being installed in Angonia in an attempt to change this situation. However, the process has been progressing slowly and the unit is not yet operational.

In Moatize these trend also prevail. Agriculture is the predominant activity and is developed by local communities, precisely at the level of each family structure; mainly in rain fed conditions and using rudimentary techniques that influence moderate productivity level. Much of the farming developed by households is intended essentially for self-consumption. The main crops include maize, sorghum, millet, peanuts and beans. In riparian areas, some families use the low areas for the production of vegetables. Although in modest quantities/amounts, smallholders/family units also produce some cash crops for sale to companies operating in the region (tobacco and cotton).

Notwithstanding the challenges, Tete province is ahead of most provinces in the use of agro-chemicals, including pesticides by small and medium size farmers. These are particularly related with tobacco and cotton production.

18 Although this crop is not eligible under the Project.

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

Other economic activities in the project area include animal husbandry, artisanal fishing and informal trade, especially between the Mozambique and Malawi boarder and/or Mozambique and Zimbabwe borders. The Province has a long standing tradition of livestock, especially cattle and goats. Livestock is, in terms of economic importance, the second activity in the province.

Fishery is predominantly artisanal, of small-scale, oftentimes meant to support the livelihoods of households. This is an important activity along the local rivers. Reportedly, fishermen capture seven different species of fish, Labeo congoro being the largest of the species being caught.

Tete province is rich in mineral resources and is endowed with vast agricultural and tourism potential (angling in Cahora Bassa, hunting activities made possible by abundant wildlife that still exists in parts of the province, etc.). The province has attracted migrants from various parts of the country and the region (including individuals from the neighboring Zimbabwe and Malawi) in search of better conditions of life and work.

Because of its abundant mineral resources (mainly the vast coal deposits), the Province is now the scene of large-scale projects, attracting the attention of major international investors such as JSPL Mozambique Lda Mineral Resources, Vale Mozambique, Riversdale (Rio Tinto) and ETA Star, with the first three already having mining licenses and in the process of implementing their projects.

However, the increase in job and income generating opportunities cannot disguise the fact that the enormous influx of people to the province, particularly to Tete and Moatize, has been associated with a significant number of concerns. There is considerable (i) land taking from people/poor communities as seen by the recent resettlement experience from Vale; (ii) land and property speculation that is leaving thousands landless and making housing unaffordable for many.

Existing and planned developments have the potential of creating a situation where local people will be forced to live outside their own province of origin due to lack of land for resettlement as more land has been and is likely to be taken by developments such as the Mpanda Nkuwa Dam and a various mining concessions (i.e. Jindal, Rio Tinto and Vale, etc.).

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

Sound and long term planning is required to ensure that development is inclusive and contributes to improve the living standards of local people.

Niassa and Nampula Provinces

From Entre-Lagos at the border with Malawi to Nacala the Corridor extends over a stretch of 526 km, which includes the districts of Mecanhelas and Cuamba in Niassa province and the districts of Malema, Ribáue, Mecuburi, Nampula (Rapale), Meconta, Monapo, Mossuril, Nacala-a-Velha and Nacala Porto in Nampula province. Additionally, the Corridor covers the cities of Nampula and Cuamba in Niassa and Nampula, respectively.

The provinces of Niassa and Nampula combine characteristics significantly different, manifested, firstly, by the low population density (8 inhabitants per km²) and considerable isolation of the first (Niassa) and, secondly, the high population density (49 inhabitants per km²) and marked integration by the second (Nampula), which has some of the major business centers in the country and thus in the region. These two provinces also can be characterized by a relative distinction between their inland areas (districts of Mecanhelas and Cuamba in Niassa and Malema, Ribáue, Mecuburi Rapale, Nampula, and Meconta Monapo in Nampula) and the coastal districts (Mossuril and Nacala).

However, the districts of the two provinces crossed by the Corridor have enough similarities and tend to define a specific ethno-linguistic and socio-economic unit, which can be defined as the interior of Nampula and south of Niassa. Most people are Macua spread between Christian and Muslim (INE, 2007). There are also similarities in population density from 15 inhabitants/km2 (in Mecanhelas - twice the density of the Niassa province, i.e. 8), and 56 inhabitants per km2 in Nampula province (especially in the coastal areas).

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This mosaic defines well an area that is generally very rich in terms of natural resources due to the relative abundance of rivers and streams that translates into very fertile arable soils favorable (characteristics of the traditional agriculture in the country, known to be very productive). In fact, Malema district is known to be the "breadbasket" of Nampula province, mainly due to its rich arable soils. However, in general, the nine districts in this northern region have similar agro-ecological conditions and are important producers of food crops particularly maize, sorghum, cassava, sweet potato, beans, peanuts and others, including a variety of fruits, as well as cash crops such as tobacco, cotton and cashew nuts.

Despite all the favorable natural conditions for agricultural production and land availability, data from the district profiles (MAE, 2005) also indicate that not all households in the districts under study, particularly in rural areas, produce enough food to meet their yearly consumption. Usually, households have food reserves to cover only between 2.5 to 4 months. Data also show that at least 5% of households are generally vulnerable. Women, children, elderly and / or chronically ill or disabled persons usually head the most vulnerable families. To counteract the food vulnerability, a considerable proportion of households resort to survival strategies that include participation in "food for work" initiatives promoted by various development assistance agencies e.g. the World Food Program, Save the Children, INGC, as well as in some IDA/Donor-funded operations, especially in the field of infrastructure/civil works development. They also resort to collecting wild fruits, collection and/or sale of firewood, charcoal, reed, cuttings, traditional beverage (amarula, palm oil, sorghum and/or cashew beers), hunting and sometimes formal employment, mainly by men, in the surrounding townships and villages. One main reason for this situation could be the nonexistence and relative weakness of rural markets, weak agricultural technologies and yields, along with other reasons that could explain the low productivity of natural resources in Mozambique, particularly in the rural areas.

It is worth noting that the City of Nampula is the third largest city after Maputo and Matola and that because of its unifying role of business activities in the northern part of the country the city is also known as the "Capital of the North". Monapo town was once a major industrial center, which declined right after independence and particularly during the war-years that ended in 1992.

The coastal districts of Nampula located in the project area including Mossuril, Nacala-Porto and Nacala-a-Velha are characterized by high population density (76 in Nacala is substantially above the average of the province 49) despite the fact that Mossuril is not a perfect example in this respect (population density of 34). Apart from producing food crops, typical of Mozambique, these districts also have a strong tradition of producing cash crops such as cotton and cashew nuts.

Nacala Porto district and particularly the city with the same name has been witnessing unprecedented growth in the last few years. The city has one of the deepest natural ports in Africa. It is strategically important not only to Mozambique but also to the neighboring landlocked countries such as Malawi.

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Nacala Porto is the second largest urban center in Nampula province and an important trade center for the whole region. The main development factor is the Bengo Bay that offers one of the deepest natural ports in African continent. Thanks to the port, Nacala has become an important terminal of different transport routes, including the national road nr 8 (EN8) that connects Nacala with Nampula; the national road 106 (EN106), which links Nacala City with the northern towns of Pemba and Montepuez in Cabo Delgado province; and the Nacala railway. The rail network covers an area of 920 km and is divided into two rail lines, one from Nacala to Lichinga (800 km), including the extension of Lumbo (42km) and other from Cuamba to Entre-Lagos on the border with Malawi, with a length of 77km (MAE, 2002).

The city used to host a military airport, which the Government is currently transforming into an international civil aviation airport. It will link Nacala to the rest of the country and the continent. This can be expected to translate into renewed economic growth and developments for the entire region and the country as the existing intentions are consolidated. In light of this the rehabilitation and expansion of the 9 km linking the future airport to the city is seen as highly justified.

In other areas there have been intensive construction operations going on in Nacala Porto, which are likely to radically transform the city’s internal dynamics and turn into one of the major economic hubs in northern Mozambique.

Developments in Nacala Porto are being complemented by those occurring and/or planned to take place in Nacala-a-Velha, the neighboring district. The capital of Nacala-a-Velha is expected to have the second deep water port by 2015 when Vale Moçambique will start it coal-exporting operations using Nacala Corridor. Indications are that other developments will follow suit, which in combination will transform the area defined by both the capitals of Nacala Porto and Nacala-a-Velha into one of the fastest economic growing areas in Mozambique and eastern and southern Africa. In 2007 the government decided to establish Nacala Special Economic Zone with the aim of ensuring that the various development initiatives for this important economic area are adequately coordinated. GAZEDA (Special Economic Zones Office) was subsequently established to coordinate the various initiatives.

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6- WORLD BANK SAFEGUARDS POLICIES In line with the project characteristics, it is to be expected that agriculture and public works will have expressive weight within PROJECT. It is particularly in the agricultural sector that the inability to take advantage of the vast natural and social opportunities offered by the country to diversify its economy, create employment and income opportunities for a large majority is most felt. Due to its focus on agricultural and basic general infrastructure and systems development PROJECT will finally trigger only five of the 10+2 World Bank Operational 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). These Safeguard Policies are briefly reviewed and described below.

Table 3: Safeguard Policies Triggered by the Project

Safeguard Policies Triggered Yes NoEnvironmental Assessment (OP/BP 4.01) XNatural Habitats (OP/BP 4.04) XForests (OP/BP 4.36) XPest Management (OP 4.09) XPhysical Cultural Resources (OP/BP 4.11) XIndigenous Peoples (OP/BP 4.10) XInvoluntary Resettlement (OP/BP 4.12) XSafety of Dams (OP/BP 4.37) XProjects on International Waterways (OP/BP 7.50) XProjects in Disputed Areas (OP/BP 7.60) X

6.1 Environmental Assessment (OP/BP 4.01)The World Bank’s environmental assessment operational policy requires that all proposed Bank-funded projects, no matter the source of funding be screened for potential environmental and social impacts. The policy is triggered if a project is likely to have adverse environmental and social risks and impacts in its area of influence. Likewise, each proposed subproject activity is required to undergo the same social and environmental screening process to be qualified for funding, i.e. the systematic usage of both the Environmental and Social Screening Form (ESSF) and the Check-list. Moreover, according to OP/BP 4.01 the Bank classifies proposed projects into one of four categories, depending on the type, location, sensitivity, and scale of the project and the nature and magnitude of its potential environmental and social impacts:

Category A: A proposed project is classified as Category “A” if it is likely to have significant adverse environmental and social impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. EA for a Category A project examines the project's potential negative and positive environmental and social impacts, compares them with those of feasible alternatives (including the "without project" situation), and recommends any measures needed to prevent, minimize, mitigate or compensate for adverse impacts and improve environmental and social performance. For a

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Category A project, the borrower is responsible for preparing safeguards documents, normally either an Environmental and Social Management Framework (ESMF) when the physical footprint of a project is unknown by appraisal, or an Environmental and Social Impact Assessment (ESIA with an Environmental and Social Management Plan [ESMP]), or an Environmental Audit/Risk Assessment whenever the physical footprint of a project activity is known prior/by appraisal.

Category B: A proposed project is classified as Category “B” if its potential adverse environmental and social impacts on human populations or environmentally and socially important areas, including wetlands; forests, grasslands, and other natural habitats, are less adverse than those of Category “A” projects. These impacts are site-specific and easier to deal with; few if any of them are irreversible; and in most cases appropriate mitigation measures can be readily designed. The scope of ESIA for a category “B” project may vary from project to project, but it is narrower than that of a category “A” ESIA. Like Category A ESIAs, it examines the project's potential negative and positive environmental and social impacts and recommends any measures needed to prevent, minimize, mitigate or compensate for adverse impacts while improving the project environmental and social performance. For simple Category B projects with very limited/low social and environmental impacts the preparation of Environmental and Social Management Plan (ESMP) that builds upon an ESMF might be sufficient. Likewise, the preparation of an abbreviated RAP that builds upon an RPF might suffice; but this will be further dealt with under OP/BP 4.12 below.

Category C: A proposed project is classified as Category “C” if it is likely to have minimal or no adverse environmental and social impacts. Beyond screening, no further ESMF/ESIA or ESMP or RPF/RAP action is required for a Category “C” project. Nonetheless, being a category C project doesn’t necessarily prevent a project to ensure adequate monitoring of both environmental and social aspects of projects that are beyond safeguards.

Category FI: A proposed project is classified as Category FI if it involves investment of Bank funds through a financial intermediary, in sub-projects that may result in adverse environmental and social impacts."

Mainly because of its limited environmental and social impacts the Project had been now classified as a Category “B” project.; and since the sub-projects have not yet been clearly identified the World Bank required the preparation of an ESMF, which is a screening tool to screen sub-projects for potential environment and social impacts. Most of the subprojects will fall under Category B and some under Category C. In fact, the only infrastructure the project will be financing will be some rural feeder roads to link production areas to the main roads as well as to other areas of particular interest (railway, transformation/industrial units, important trade centers, etc.). Based on the outcome of the social and environmental screening, to be done by the Environmental, Social, Health and Safety Specialists, which will work in the two provinces, once defined, sub-projects will need to prepare a simple ESIA/ESMP, a freestanding ESMP, and an abbreviated RAP or no-action needed. The costs for the preparation of these ESIAs/ESMPs, freestanding ESMPs or RAPs need to be included into the Project budget. The outcome of the screening and the

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determination of the subproject Category will need to be confirmed and approved by MICOA to verify compliance with Mozambique’s EIA Policy. Though World Bank policies and procedures are those to be followed, the TORs for these ESIAs would also need to be approved by both MICOA and the World Bank.

Furthermore, to ensure good compliance with OP/BP 4.04 (Natural Habitats) and OP/BP 4.11 (Physical Cultural Resources), the ESMF has made some provisions to ensure that adequate measures are taken to minimize the negative impacts that may occur. Like for this ESMF, OP/BP 4.01 also requires that prior to sub-project appraisal, both the GOM through the Ministry for the Coordination of Environmental Affairs (MICOA) and the World Bank will approve and disclose the ESIA/ESMP, freestanding ESMP and RAP documents, which need to have an Executive Summary in English and Portuguese in publicly accessible places in the sub-project areas and on the website of the MPD, as well as on the Infoshop website of the World Bank in Washington DC. The disclosure will need to be announced in the local newspapers and on the local radio (the transcripts of these disclosure announcements need to be sent to the World Bank for records keeping). The disclosure will provide beneficiaries, affected groups and local NGOs the chance to comment on the sub-project. A notebook and pencils need to be present at the disclosure sites as means for stakeholders’ comments. The time for providing comments will be minimum 1 month. Relevant comments need to be included in the final ESIA, ESMP or RAP documents. The GOM, as the owner of the safeguards documents, must officially submit the approved and disclosed safeguards instruments/documents to the Bank and authorize IDA to disclose the documents at its Infoshop in Washington DC. By making the ESMF, a Pest Management Plan (PMP) and RPF documents available to the public prior to project appraisal, the proposed project will be in compliance with the World Bank Access to Information Policy, and hence ready for Board approval for funding.Subprojects also need to be in compliance with the applicable World Bank Environmental, Health and Safety (EHS) Guidelines of April 2007. These are i) General EHS Guidelines; ii) some of the Agribusiness/Food Production EHS Guidelines; iii) Tourism and Hospitality Development EHS Guidelines; and iv) Electric Power Transmission and Distribution EHS Guidelines.

6.2 Pest Management (OP 4.09)

Any World Bank financed project that stimulates the use of pesticides will need to prepare and disclose prior to project appraisal a Pest Management Plan (PMP). Further, the procurement of any pesticide in a Bank-financed project is contingent on an assessment of the nature and degree of associated risks, taking into account the proposed use and the intended users. With respect to the classification of pesticides and their specific formulations, the Bank refers to the World Health Organization’s Recommended Classification of Pesticides by Hazard and Guidelines to Classification (Geneva: WHO 1994-95). The following criteria apply to the selection and use of pesticides in Bank-financed projects:

a) They must have negligible adverse human health effects;b) They must be shown to be effective against the target species;

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c) They must have minimal effect on non-target species and the natural environment. The methods, timing, and frequency of pesticide application are aimed at minimizing damage to natural enemies;

d) Their use must take into account the need to prevent the development of resistance in pests.

At a minimum, pesticide production, use and management should comply with FAO’s Guidelines for Packaging, Use and Storage of Pesticides, Guidelines on Good Labeling Practice for Pesticides, and Guidelines for the Disposal of Waste Pesticide Containers on the Farm. The Bank does not finance formulated products that fall into WHO classes IA and IB, or formulations of products in Class II, if (a) the country lacks restrictions on their distribution and use; or (b) they are likely to be used by, or be accessible to, lay personnel, farmers, or others without training, equipment, and facilities to handle, store, and apply these products properly.

The proposed project triggers OP 4.09 the World Bank Safeguard Policy on Pest Management, since it will support agricultural development, it will support post-harvest pest control to minimize post-harvest pest damage through the program’s improved technology adoption by farmers. Procurement of pesticides will not be financed until it becomes evident that local capacity exists to adequately manage their environmental and social impacts in compliance with OP 4.09 as described above, particularly with regards to health and safety aspects that are directly linked to human health conditions affecting women, the poor and most vulnerable groups of the community, such as toddlers, elderly and handicapped.

Given the pest management issues to be dealt with under this project a separate Pest Management Plan (PMP) has been prepared and will be disclosed prior to project appraisal. The PMP should be used as part of this ESMF.

6.3 Involuntary Resettlement (OP/BP 4.12)

Under the World Bank Safeguard Policy (OP/BP 4.12 - “Involuntary Resettlement”) resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs. Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources and means to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in the planning and implementation of resettlement programs.

Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher.

The World Bank also adopts a broader view on involuntary resettlement by not restricting it to its usual meaning, i.e. "physical displacement". Depending on the cases, a resettlement action may include (i) loss of land

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or physical structures on the land, including business; (ii) the physical movement, and (iii) the economic rehabilitation of project affected persons (PAPs), economic displacement, in order to improve (or at least restore) the levels of income or livelihood prevailing before the action causing the resettlement has taken place”. The policy applies whether or not the person has to move from the area.

A Resettlement Policy Framework (RPF) for the Project has been prepared to guide involuntary resettlement operations issues such as land acquisition by setting forth the basic principles and prerogatives to be followed by the recipient once the physical footprint of the project intervention area is known (i.e. elaboration of site specific Resettlement Action Plans-RAPs). Thus, this document (i.e. the ESMF) will not elaborate on resettlement issues but rather be used together with the standalone RPF. However, the subproject screening procedure described in this ESMF should also screen for resettlement issues and determine if OP/BP 4.12 will need to be further triggered and how much detailed the needed RAP will/must be. The Project overall budget should include in addition to the implementation of this RPF, sufficient funds to finance the preparation and implementation of site specific RAPs prepared for sub-projects.

6.4 Natural Habitats (OP/BP 4.04)

This policy applies to sub-projects, which could have a potential impact on important natural habitats outside protected areas, protected areas. Significant conversion of natural habitat is allowed under this policy if there are no viable alternatives, but the affected natural habitat needs to be compensated by an ecologically similar area of the same or larger size and the area needs to be better managed and protected. Subprojects involving the significant conversion of critical natural habitat, i.e. protected areas or critical natural habitat areas outside protected areas where endemic or endangered species mentioned on the IUCN Red List species are living and which could be severely affected or made extinct cannot be financed. The ESMF has made some provisions to ensure that adequate measures are taken to minimize the negative impacts that may occur.

6.5 Physical Cultural Resources (OP/BP 4.11)

This policy applies to sub-projects where important physical cultural resources (i.e. archeological sites, special architecture, important cemeteries or where unique immaterial cultural resources) exist or are affected. In case none of these physical cultural resources exist in a sub-project area, the bidding documents and the contractor contracts need to include a “Chance Find Procedure”, which specifies that in case that during construction an important arte-fact is found, construction is stopped and the responsible Mozambican authorities are warned and involved in an investigation of the site. Construction can only resume after the green light has been given by the responsible Mozambican authorities. The ESMF has made some provisions to ensure that adequate measures are taken to minimize the negative impacts that may occur.

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7 LEGAL AND INSTITUTIONAL FRAMEWORK FOR ENVIRONMENTAL AND SOCIAL

MANAGEMENT IN MOZAMBIQUE Similar to what happened in most countries in Africa after the Rio Conference on Sustainable Development in 1992; Mozambique has been undertaking an enormous legal and institutional reform trend. The reform extends to the environmental sector. It has been under implementation in the form 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 legislation with direct and indirect implications to environmental protection; (c) creation of specific public institutions or strengthening of existing institutions dedicated to both environmental and social management.

7.1 Legal Framework

7.1.1 Adherence to International and Regional Conventions and Protocols

In terms of adherence to and adoption of a series of international and regional environmental protection and conservation conventions and protocols the following should be mentioned:

General principles:

Mozambique has been adhering to a series of international legal instruments that relate to the need of being proactive in environment protection and conservation. Under line 2 of article 18 of the country’s Constitution, the rules of international law have the same value in domestic law and once ratified by the Parliament and Government they become constitutional normative acts. In light of alinea 1 of article 18, "treaties and international agreements duly approved and ratified, are enacted in the Mozambican legal order".

Important international and regional treaties and conventions ratified so far include:

o The UN Convention on Biodiversity ratified by Resolution n.º 2/94, of 24 of August: this is aimed at "the conservation of biological diversity, the sustainable use of its components and fair and equitable sharing of benefits arising from the use of genetic resources, including by appropriate access to genetic resources and appropriate transfer of relevant technologies, taking into account all rights over those resources and technologies, as well as through adequate funding”. This international instrument, advocates the conservation of ecosystems and natural habitats and maintenance and recovery of viable populations of species in their natural surroundings. It is an essential foundation for the creation, development and protection of conservation areas in the country, which sometimes can be endangered by carrying out oil

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and gas operations and other industrial operations without due regard to the provisions of environmental legislation

o Convention on the Protection, Management and Development of Marine and Coastal Environment in East Africa, ratified by Resolution n.º 17/96, of 26 of November: it highlights a series of measures to protect and conserve the marine and coastal environment of the Party States, particularly in terms of preventing and combating pollution and the protection of the regions’ flora and fauna against the growing threats caused by many human activities.

o African Convention on Nature and Natural Resources Conservation ratified by the Parliament’s Steering Committee through Resolution n.º 18/81, of 30 December: is aimed at ensuring the conservation, use and development of land, water, forest and wildlife resources of Member States, bearing in mind not only the general principles of nature conservation, but also the best interests of the communities themselves

o Protocol related to Wildlife Conservation and its application in the SADC, ratified by Resolution n.º 14/2002, of 5 of March: it is aimed at establishing common approaches and support to conservation and sustainable use of wildlife resources relating to the effective enforcement of laws in the region and within the domestic laws of each Party State.

o Resolution n.º 21/81, of 30 of December, by the Cabinet that turns Mozambique into an UICN member: among other it is aimed at encouraging and facilitating cooperation amongst governments, international organizations and people interested in nature conservation and its resources.

o September 2000 and Millennium Development Goals of September 2000, through which the GOM accepted and reiterated that the country’s development depends on a variety of factors influencing each other mutually. Eight goals were selected to be achieved by 2015 (see MDG). Health, education, water and sanitation occupy a central position in the commitments.

Other important international and regional conventions and protocols ratified by the Mozambican State include:

o Vienna Convention for the Protection of the Ozone Layer and the Montreal Protocol on Substances that Deplete the Ozone Layer (Resolution No. 8/93 of 8 December);

o United Nations Framework Convention on Climate Change – UNFCCC (Resolution No. 1/94 of August 24, 1994);

o Kyoto Protocol (Resolution No. 10/2004 of 28 July);o Convention on International Trade in Endangered Species – CITES

(Resolution No. 20/81 of December 30);o Cartagena Protocol on Biosafety (Resolution No. 11/2001 of 20

December);o United Nations Convention to Combat Desertification and Drought

(Resolution No. 20/96 to November 26);o Stockholm Convention on Persistent Organic Pollutants and (POPs)

(Resolution No. 19/96 of November 26, 1996);

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o Basel Convention on the Control of Trans boundary Movements of Hazardous Wastes and Their Disposal (Resolution 18/96 to November 26, 1996);

o Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade (Resolution 10/2009 of 29 September. The Convention entered into force in Mozambique in July 2010)

7.1.2 Approval of Domestic Policy and Legal Instruments

General Legislation

The Constitution

Mozambique’s 2004 Constitution includes two fundamental environmental pylons, namely: “the right of every citizen to live in a clean environment and the responsibility to protect this right” as well as recognition of environmental protection as a public interest.

The country’s fundamental law contains a series of general legal provisions aimed at preventing and controlling pollution and erosion; integration of environmental concerns into sectorial policies; promotion of the integration of environmental values in educational policies and programs; ensuring the rational use of natural resources while maintaining their capacity for renewal, ecological stability and human rights of future generations. It is also concerned with the promotion of land use planning with a view to ensure an adequate location of activities and a sensible socio-economic development.

Poverty reduction strategies19

At the macroeconomic level, PARP III20 defines the main policy guidelines leading to the integration of the environment, social and environmental health issues into the poverty alleviation strategy. As part of those priorities for the environment, sanitation ranks first, highlighting the direct relationship between conditions of access to water and sanitation, poverty and the health status of the population. Poor health and poverty are seen as closely linked. Under “sanitation, health and environmental”, the health subsector has been placed at the top of the agenda in the fight against poverty.

The Environmental Law n.º 20/97, of 1 of October 1997

This Act is “aimed at defining the legal bases for a correct use and management of the environment and its components for the realization of a system of sustainable development in the country”.

Article 4 of the Environment Law establishes a range of basic legal principles, which highlight: the principle of rational use and management of environmental components, with a view to further improve the quality of 19 There have been three poverty reduction strategies guiding the country’s development since 1996.20 Poverty Reduction Action Plan 2011-2014

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life of citizens and the maintenance of biodiversity and ecosystems; the precautionary principle, whereby the environmental management should prioritize the establishment of systems to prevent acts that could be harmful to the environment, to prevent the occurrence of significant negative environmental impacts or irreversible damage, regardless of the existence of scientific certainty about the occurrence of such impacts, and the principle of global and integrated vision of the environment as a set of interdependent natural ecosystems, which must be managed so as to maintain their functional balance.

This law has formed the basis for defining specific environmental laws and regulations.

The Environmental Impacts Assessment (EIA) Regulation, approved by Decree n.º 45/2004, of 29 of September

Mozambique has developed comprehensive regulations to cover the EIA process, which are included in the Regulation of the Process for Environmental Impact Assessment21. The regulations are in line with the world’s environmental and social management best practices, including World Bank recommendations and procedures.

There are three main specific objectives of any EA exercise:

Screening and scoping of the proposed developments in terms of their potential impacts on the natural and social receiving environment, indicating both its beneficial outcomes and adverse effects. The initial screening is meant to determine the scope of the Environmental and Social Impacts Assessment (ESIA) required prior to approval of interventions. If any investment is likely to have significant adverse environmental impacts that are sensitive, diverse or unprecedented (Category A), the ESIA will be more stringent than if the investment has impacts which are less adverse, site-specific, mostly reversible and where adequate mitigation measures can be designed (Category B). For investments with multiple sub-projects, this screening is often done in the form of a checklist of potential impacts included in standard Environmental and Social Management Frameworks (ESMFs).

The actual Environmental Impacts Assessment (ESIA), which assesses the potential impacts of the investment in detail and evaluates alternatives.

Proposal of measures to be taken in order to avoid, mitigate and/or eliminate adverse effects both at the planning, design and installation stages, and during operation and eventual decommissioning of the project. This is generally done in the form of an Environmental and Social Management Plan (ESMP), which is normally an intrinsic part of the ESIA.

The Scoping Exercise, ESIA and the Environmental and Social Management Plan (ESMP) are components of particular importance in any EA process. Scoping primarily explores fundamental issues and identifies

21 Decree 45/2004 of September 29, 2004 and Decree 42/2008 of November 04, 2008.

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any potentially significant positive and negative environmental (and social) impacts associated with the proposed development, helping to determine the scope of the Environmental and Social Impacts Assessment. An ESMF and an ESMP include in an annex Environmental and Social Clauses (ESC), which serves as a guide for the contractor during construction. One of these clauses is the “Chance Find Procedure” mentioned earlier. These ESC should be included in the bidding documents and in Constructions Companies Contracts for systematic compliance during project construction.

The ESIA regulation also foresees that the Draft Scoping/TOR and Draft ESIA/ESMP should be subject to public debate with the objective of:

Keeping Interested and Affected Parties (PI&As) informed about key issues and findings of each stage of the ESIA;

Gathering concerns and interests expressed by various project stakeholders;

Obtaining contributions/opinions from stakeholders in terms of avoiding/minimizing possible negative impacts and maximize positive impacts of the project; and

Supporting the social dialogue and identifying from the onset, stakeholders’ perceptions and expectations. This can contribute to the action planning and effective communication in order to minimize the impacts of the project. The process also allows for rethinking the project’s technical aspects

Specific public participation aspects are regulated by Diplomas 129/2006 and 130/2006 and other related regulatory instruments.

Certain interventions might require people to be resettled. The Regulation of the Environmental and Social Impacts Assessment Process, which governs the EIA process in Mozambique, says very little about resettlement, except in its Annex I, point 1. Infrastructures, line a), where it states “under environmental licensing, all interventions requiring people to be resettled will be considered as Category A Activities”.

After many years of not having a single instrument to guide resettlement planning and action on August 8, 2012 the Cabinet approved Decree 31/2012, the new “Regulation on the Resettlement Process Resulting from Economic Activities”. This regulation fills a longstanding void in this regard. However, as it stands, this new regulation contradicts a lot with the applicable World Bank Operational Safeguards Policy (OP/BP 4.12) in various angles/domains as highlighted below

Article 15 indicates that a Resettlement Action Plan is part of the Environmental Impact Assessment, as per Decree 45/2004, of September 29 of the latter process;

Decree 31/2012 makes no provision of Framework as a starting point in situations where project intervention area’s footprints are not known; nor does it provide (i) basic characteristics to trigger resettlement, (ii) entitlement eligibility criteria, and/or (iii) room for grievance redress mechanism upon which PAP can rely upon for peaceful resolution of their concerns.

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Moreover, for the most of this new Decree, it seems worth stressing out that its practical implications are still to be tested and assessed. Preliminary indications are that it does not solve the need to be specific in certain areas of the resettlement process, which continue to be spread over a series of legal documents. Thus, it will continue to be necessary to creatively combine those documents to devise the best measures to be adopted in relation to specific issues. In fact, Mozambique legislation guiding involuntary resettlement is spread over a series of legal documents dealing with land, general rights, compensation, etc. To counteract potential inconsistencies derived from using laws and regulations that are not always easy to harmonize, most of the resettlement procedures undertaken to date by development initiatives in Mozambique have followed the OP/BP 4.12 of the World Bank on Involuntary Resettlement, which is systematically endorsed by the Government, as one of the member-countries. The Policy covers the involuntary taking of land, as well as restriction of access to means of livelihood.

Whenever an investment is likely to result in involuntary resettlement, a Resettlement Policy Framework (RPF) the borrower should be prepared, defining the principles, organizational arrangements, criteria for eligibility and compensation, grievance redress mechanisms and monitoring processes to be adopted. Once the Social Screening process (also included in the ESMF environmental and social screening form – ESSF) has determined with certainty that resettlement will be needed, a Resettlement Action Plan (RAP) is further prepared, approved and implemented prior to the physical implementation of the civil works activities. The details are presented in the RPF already mentioned above, which has been prepared as a standalone document as part of the Project.

Regulation to Prevent Pollution and Protect Marine and Coastal Environment, approved by Decree n.º 45/2006, of 30 of November

This instrument has, as its aim: to prevent and limit pollution from illegal discharges from ships, platforms or land-based sources, off the coast of Mozambique and the establishment of legal bases for the protection and conservation of areas in the sea, lake and river, beaches and fragile ecosystems that are public domain. It also categorizes the various activities and determines the levels of their acceptability. It also deals with land-based sources of marine pollution.

The Forests and Wildlife Law (Law n.º 10/99, of 7 of June) and specific regulations

Among other aspects, the law defines the protection and conservation of specific biodiversity components as well as certain flora and fauna species found in certain places

The Land Law (Law n.º 19/97, of 1 of October)

The law and its Regulation 66/98, provide the basis to define access rights, land use rights and procedures for the acquisition and use of land title by the communities and individuals. The same law and the regulation embodies key aspects defined in the constitution in relation to the land such as the maintenance of the land as state property and that land cannot

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be sold as well as the absence of a "land market" per se in the country. Among other aspects it defines “areas meant to meet public interest” as belonging to public domain. It also protects customary and community rights over land.

The Land Planning Law (Law n.º 19/2007 of 18 of July) and its regulation

It establishes a number of important principles for environmental protection in the context of regional planning. Line 1 of article. 5 of this Act, states “land use planning aims to ensure the organization of national space and sustainable use of natural resources, noting the country's economic legal, administrative, cultural and material conditions favorable to social development and, to promote the quality of life, the protection and conservation of the environment. It establishes hierarchical responsibilities among central, provincial, district and local governments in land use planning processes.

National Water Law in 1991 and the National Water Policy from 199522

Under the water law and policy the following principles are adhered to: (i) water supply and sanitation services should be provided in accordance with the demand and economic capacity of the users; (ii) tariffs should allow for the recovery of operational and maintenance costs, and later contribute to investment and sustainability of the systems; and (iii) in as far as possible water supply and sanitation services should be decentralized to autonomous local agencies. Under the water law and policy, water and sanitation are formally dealt with as a unity although sanitation is seen as still being in a situation of relative disadvantage.

A process of separation of functions and roles and responsibilities of the various role players has been underway. In water, water resources and bulky water production roles have been separated from water supply asset holding and from water services management. A regulatory entity has also been established with the mandate of keeping a balance between government and private sector management at the same time that consumers are given a voice in infrastructure planning and management. The government retains the role of policy formulation and general promotion. However, in practical terms the country is still going through a transition process with government interfering across the entire sector doing cumulatively policy formulation, regulation, implementation and management of services. Nonetheless, there has been enormous progress made in both implementation and institutional adaptation.

The Law on Local State Administration no 8/2003 and Decree no

15/2000 on Local Authorities

These legal instruments expand the level of control and responsibility to local authorities for local development and decentralization.

Mine (14/2002) and Oil (3/2001) Laws 22 Updated in 2007

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The Law n. º 14/2002 of 26 June regulates the terms of exercising the rights and duties relating to the use and exploitation of mineral resources with respect for the environment, considering their rational use and benefit to the national economy. The same law stipulates that "the right to use and exploit mineral resources shall be exercised in accordance with the best and safest mining practices, in compliance with the environmental quality standards established by law and with a view to developing a long-term sustainability”. Specific areas in which sustainability should be materialized include: a) reconnaissance b) exploration and research; c) mining; d) treatment and processing, e) marketing or other uses of the mineral product, and f) other related purposes. In its turn Law 3/2001 of February 21 is governed by the same principles as stipulated above and regulates oil production in the country.

Pesticides Regulation (Ministerial Diploma nr 153/2002, of 11 of September)

This is a joint regulation between the ministries of agriculture, health and environment aimed at regulating the importation, distribution, production, disposal and use of agrarian pesticides for the protection of animal and public health purposes. It requires all operators active in the importation, distribution, production of pesticides to be registered. It also classifies the various pesticides in three major categories, where those of Class III and II are the least lethal and those of Class I are the most lethal. It also regulates the labeling and packaging of pesticides, as ways of facilitating identification and protecting the environment and particularly public health.

Occupational Health and Safety

Occupational health and safety combine provisions from different legal instruments namely: the Constitution, the Labor Law and a series of provisions from subordinate legislation, much of it inherited from the colonial period. ILO conventions, especially Convention no 17, related with compensation for workplace accidents as well as ILO Convention no 18, regarding compensation for occupational illnesses, also apply.

The Constitution (Article 85) states that all workers have a right to a fair wage, rest and vacation and to a safe and hygienic work environment. The Labor Law (Articles 216 through 236) indicates that workers have the right to work under hygienic and safe conditions and that employers have the obligation to create such conditions and to inform workers regarding the risks associated with specific tasks that they are supposed to perform. This could be in the form of safety equipment and work clothing to prevent accidents and negative effects on workers’ health. Under the Labor Law employers and workers are expected to work together to ensure health and safety at the work place. Companies with high risk of accidents or occupational hazards are required to establish workplace safety committees to ensure compliance with health and safety norms investigate the causes of accidents and organize preventive measures. Such committees must include representatives of both the employer and the workers.

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The Labor Law also stipulates that industry-specific regulations on health and workers’ safety may be established by ministerial diploma, by the Minister of Labor, the Minister of Health or the Minister in charge of the specific sector. It is worth mentioning that in 2008 (December) the Ministry of Health approved its specific guidelines in this regard (MISA/DNAM (December 2008) – “Guidelines on Safety and Health in the Workplace”, Maputo, Mozambique).

Large size companies (i.e. with more than 100 employees) and companies carrying out strenuous, unhealthy or highly dangerous activities must have health units on site. Medical professionals are supposed to regularly examine workers to determine, among others, if they are well enough to do the work called for in their contracts. HIV/AIDS tests fall outside such a provision. For certain sectors and in line with their specific provisions regular health checks are mandatory. Such is the case of workers dealing with food and beverages.

7.2 Institutional Framework

The GOM established the Ministry for the Coordination of Environmental Affairs (MICOA), in 1994. MICOA has been refining its approach to tackle environmental management by adopting medium to long-term strategies and policies. In more recent times, focus has been on (i) integration of land use planning into decentralized planning, (ii) reduction of the people living in environmentally risky and sensitive areas; (iii) environmental education and promotion; and (iv) regulation and supervision of natural resources management activities. These aspects are enshrined in the Environmental Strategy for Sustainable Development 2007-2017 (EADS). MICOA is a coordinating entity in recognition of the fact that environmental management is the result of a combination of interventions by a series of development sectors and stakeholders at various levels. Main areas of intervention include policy formulation, general promotion, planning, research/technologies, investment in infrastructures and other relevant areas, regulation, surveillance, extension/education/awareness creation, etc. The understanding of environment as a crosscutting subject coordinated by MICOA has led to the definition of environmental line ministries to integrate the other ministries/sectors that deal directly with the main environmental components, i.e. soil and subsoil, water, air and the biotic components (plant and animal). In general, these can also subdivided into two major categories:

(i) Those depending directly on natural resources as their main source of raw materials (inputs) comprise:

1. Agriculture (land and forests)2. Fisheries (fishery resources)3. Mines (mineral resources)4. Public works and housing (water and land)

(ii) Those whose outputs depend largely on the supply of environmental services comprise:

5. Energy (water, mineral resources, biotic elements for bio fuels, etc.)6. Tourism (landscape and wildlife)7. Health (water and infrastructures)

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At present, the list of environmental line ministries includes, but it is not limited to:

Energy: Energy production and distribution (electricity, fuels and renewable energy);

Agriculture: Plant and animal production, forests and wildlife, land and cadaster, agricultural irrigation and agricultural research and extension ;

Health: health including environmental health as part of public health;

Mining/Mineral Resources: Geology, mines and fossil fuels; Public Works and Housing: Water, buildings, roads and bridges,

housing and urbanization; Tourism: Tourism and respective hotel industry as well as

conservation areas related with tourism; Fisheries: Fisheries’ management and inspection, fisheries research

and technologies.

PROJECT planning, implementation, monitoring and evaluation can substantially benefit from this institutional arrangement for sustainable management of environmental and social factors. As indicated, to begin with, the Project Steering Committee will be chaired by MPD and will consist of representatives from the ZVDA, GAZEDA, MPD, MICOA, MMAS MTC, MOPH and MINAGRIRI. This institutional arrangement is also meant to ensure that all relevant sectors and institutions have a voice in all important stages of PROJECT development, including in environmental and social implications of the project.

It should be mentioned that although there has been increased harmonization between the GOM Regulations and the WB Safeguards Policies, differences in a number of areas and aspects remain. Under the Project whenever there is a conflict between national legislation and World Bank safeguards policies, the later prevails.

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8 ENVIRONMENTAL AND SOCIAL CONCERNS OF TARGETED AREAS

In addition to contacts with central level institutions in Maputo city, the districts of Nampula City, Nampula Rapale and Mecuburi, in Nampula province, Moatize, Mutarara and Tete, in Tete province as well as Morrumbala in Zambezia province were visited between 23 and 26 October 2012 for reconnaissance and preliminary assessment of the field conditions and initial public consultation with local stakeholders. During the final stage of project formulation and after clarification of its initial geographical boundaries and general orientation the districts of Nampula city, Nacala Porto and Nacala-a-Velha in Nampula province and those of Tete City, Angonia, Tsangano and Macanga, in Tete were visited from 17 to 22 January 2013. The latter visit was aimed at presenting to and getting feedback from main stakeholders on project’s structure and contents and the impacts that it is likely to be associated with as well as ways of dealing with its different aspects. Details about the public consultation process are presented in Chapter 10 of this document.

Extensive literature review was also carried out with the purpose of identifying key environmental and social concerns in the project areas.

From the public consultation that has been conducted so far, the following issues seem to deserve special attention:

Land use planning: In compliance The Land Planning Law (Law n.º 19/2007 of 18 of July) and its respective regulation the districts have been instructed to prepare and have been preparing district and inter-district land use plans, while towns and cities and respective governments including municipalities work on urban plans within the areas under their jurisdiction. In line with the law, the plans are aimed at:

(i) guaranteeing the right to land occupation for people and local communities;

(ii) re-qualifying urban areas, which due to a combination of factors, including the war that ended in 1992, have been growing in an unplanned way in many places;

(iii) identifying and enhancing capabilities; (iv) preserving the ecological balance of soil quality and fertility; (v) ensuring compatibility and coordinate environmental and social

policies and strategies and socio-economic development; (vi) optimizing management of natural resources; and (vii) managing land conflicts.

In most cases, these plans have not yet been completed but they are seen as important instruments in deciding the siting of interventions including those expected to fall under the Project. Local and central level stakeholders, are of the opinion that in a practical way, the Project should endeavor to support the smooth completion of the land use plans as part of the process of deciding the best location of the various interventions is seen as highly relevant. Since this component is no longer part of the project what is left is for the project to try to align its interventions with the existing land use plans. Annex 1 presents the status quo of the preparation

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of District Land Use Plans (PDUT), which can be used to enlighten the Project approach. The annex does not include municipal land use plans. It shows that the districts of Nacala Porto, Nacala-a-Velha and Macanga have their PDUT prepared (in 2009 (Nacala Porto and Macanga) and 2010 (Nacala-a-Velha)) and that Angonia and Tsangano are yet to prepare such plans.

It should also be noted that even where PDUT exist in some cases the quality of such instruments is not adequate. Assistance might be needed to bring them up to the required standard.

Widespread resettlement processes: people living in a number of areas within the project boundaries e.g. in and around Tete/Moatize and Nacala Corridor (Nacala Porto and Nacala-a-Velha), as well as the margins of the main rivers (e.g. Zambezi and Shire), have been subject to a series of resettlement processes in the last few years. The resettlement processes were done as a way of opening space for investment projects (coal operations, construction and rehabilitation of railways, ports, roads, water supply systems, etc.) and protection against recurring flooding. Local stakeholders from these districts are also of the opinion that the Project interventions should be planned, designed and implemented in such a way as to avoid huge resettlement and particularly resettling the same people and/or communities that have been subject to resettlement by previous interventions, and/or resettling more people of the same community. In the event of that happens (i.e. additional resettlement) that could be extremely disruptive to local livelihoods, and hence source of potential social conflicts that, if not well managed/contained could hinder the overall project outcome, and to a certain level, cause a possible reputational risk to both the WB and the GoM.

Protection of areas of special importance (conservation/protected areas and wetlands): as seen in the description of the receiving natural environment together the two major areas of the project space are rich in areas of special importance such as conservation and protected areas as well as wetlands, including protect species. WB and GOM requirements for managing those areas in a sustainable manner will have to be adhered to in all Project interventions. A list of protected areas and species, including those in the IUCN red-list will be compiled as part of the ESMF to serve as the guide for PROJECT in terms of conservation.

Assisting all categories of farmers to increase their production and productivity: for agricultural promotion, a rapid assessment indicates that in the three districts selected to form the Angonia Cluster (i.e. Angonia, Tsangano and Macanga), finding sizable portions of land, bigger than 20-30 ha to allocate to small and medium commercial farmers, will not be easy. Even commercial farmers will have to rely on smaller portions of land. Under such circumstances, it suggested that all categories of farmers be assisted to increase their production and productivity with the land that they have and will have available in the short to medium term rather than focusing on providing some of them with bigger farms of 100 ha or more, which will definitely be difficult to find. At present, the average plot size in the hands of small commercial farmers hardly exceeds 15 ha in Angonia and Tsangano. While the family sector farms are between 1 to 5 ha. Experiences in other countries shows that with adequate organization and

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structures, dedicated agricultural technical assistance, market linkages and general assistance even farmers with 1-2 ha of land can play a significant role in agriculture development that feeds national and international markets.

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9 POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS AND MITIGATION MEASURES

As stated in Chapter 2 of this document the project will have four main components:

1. Component 1: Support for the Tete agribusiness growth pole in the Zambezi Valley

2. Component 2: Support for the Nacala Special Economic Zone (SEZ) in the Nacala Corridor

3. Component 3: Institutional Development and Capacity Building 4. Component 4: Project Implementation

Activities under these four components will affect the different environmental and social components in different ways. The environmental components to be directly affected include:

land resources on which the proposed small-scale infrastructure, such as rural feeder roads, a water supply pipeline, warehouses and other buildings, etc. will be built;

air quality, which has the potential to be negatively affected by dust generated from the various construction/rehabilitation and project operations;

soils which may be polluted with pesticides; water resources including freshwater and seawater (Nacala Porto

and Nacala-a-Velha), which will be affected by the discharge of fertilizers, nutrients, different chemicals to be used for pest management, water abstraction, diversions, and debris from civil works, oil spills, etc.;

vegetation which may have to be cleared to pave the way for new farming areas and roads; and

communities, which will generally benefit from the project, but at times could be negatively affected, e.g. the risk of the loss of land and/or loss of assets.

The preliminary identification of Project potential environmental and social impacts was done considering the environmental and social components that are likely to be affected by the Project activities. This was done through literature review of projects implemented in the same areas and through public consultation with key stakeholders, particularly community representatives, local leaders and key informants and professional judgment.

9.1 Potential adverse environmental and social impactsThe environmental and social impacts will result from the project activities under components 1 and 2. These impacts relate to the final design, construction and operation of rural feeder roads in the Angonia area, roads in the Nacala area, urban water supply and electricity transmission line in Nacala as well as other physical infrastructure, such as warehouses for agricultural products. Further impacts will be caused by the increased use of fertilizers and agro-chemicals, including herbicides and pesticides, as well as installation and operation of agro-processing and storage facilities.

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Adequate selection criteria for investors will need to be applied to avoid the risk that communities lose the access to their land. Large-scale investors, which need to acquire large land areas will not be supported. In Tete, in particular, there have been negative experiences in this regard in recent times. The project should, by all means, avoid the repetition of such experiences. In addition, investors who want to introduce genetically modified organisms (GMOs), grow tobacco and drugs will not be supported.

For all environmental and social impacts the applicable World Bank Group Environmental, Health and Safety (EHS) Guidelines of April 2007 will need to be applied. Especially the General EHS Guidelines and the Agribusiness and Food Production EHS Guidelines will need to be applied. The applicable Agribusiness and Food Production EHS Guidelines will be applied to the Agro-processing facilities from investors who are associated with Project financed activities. Also the Electric Transmission and Distribution EHS Guidelines will apply.

Although the expected environmental and social impacts will be limited in extension, the following negative environmental and social impacts can be expected:

Soil

During construction activities, soil erosion may be caused by exposure of soil surfaces to rain and wind during site clearing, earth moving, and excavation activities. Improper grading of land may also cause drainage and erosion problems. The resulting soil particles may be transported into surface drainage networks and rivers, thus, affecting the quality of natural water systems and ultimately the biological systems using the waters. Water may accumulate in excavated pits potentially leading to the breeding of insects and other infectious organisms, which could increase the prevalence of malaria and bilharzia. Accidental spill of oil or lubricant may infiltrate into the soil and enter surface or groundwater. Increased use of fertilizers and agro-chemicals (pesticides) will also affect soil quality.

Air Emissions

Construction and rehabilitation activities of rural feeder roads, access road, transmission line and water mains to the Nacala SEZ, agro-processing facilities, buildings, etc. are usually associated with the release of dust generated from land clearing, excavation and movement of earth materials, cut and fill operations, contact of construction machinery with bare soil, and exposure of bare soil and soil piles to wind. The use of construction equipment and power generators is expected to release exhaust related pollutants such as carbon dioxide (CO2), nitrogen oxides (NOx), sulfur oxides (SOx), particulate matter (PM) and hydrocarbons (HCs). Agro-processing facilities can cause air pollution. The air emission standards in the applicable World Bank Group Agribusiness and Food Production Environmental, Health and Safety Guidelines, as well as the General Environmental, Health and Safety Guidelines need to be applied. The cleaning and rehabilitation of fuel oil tanks in oil storage facilities may generate volatile organic compound (VOC) emissions. For small operations as the ones expected under PROJECT air emissions during rehabilitation/construction and operation phases tend to be confined to the

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immediate vicinity of the rehabilitation/construction and operation sites and will have insignificant impacts on air quality. Adequate preventive, design and management measures will suffice to prevent such emissions from being harmful to people and surrounding biophysical setting.

Noise

During construction/rehabilitation and operation activities, noise may be caused by the operation of pile drivers and demolition machines, earth moving and excavation equipment, generators, concrete mixers, cranes as well as fuel oil tank erection and pipe laying works. The increased noise level may impact on construction workers and nearby residential areas. However, most of the impact will be limited to the works’ implementation phase and will end when the works are complete. Noise levels may not exceed 55 dB during day time and 45 dB during the night in residential areas and 70 dB in industrial areas during all times during the day and night.

Solid and Liquid Wastes

Solid and liquid wastes will be produced during construction and operation. This solid and liquid waste needs to be managed. Non-dangerous wastes can be disposed of in urban landfills. Hazardous wastes, such as used oils need to be disposed in an environmentally sound manner. They are normally disposed off through a contractual arrangement with the oil suppliers, who will take the waste oils away for recycling.

Rehabilitation of fuel storage facilities may involve the removal of contaminated soils around fuel dispensers, piping, and tanks. Depending on the type and concentration of contaminants present, such soils may need to be managed as hazardous wastes. In addition, bulky, inert and contaminated solid waste items are likely to be generated during the rehabilitation of fuel storage facilities such as damaged tanks. If improperly managed such wastes may constitute an environmental problem. These facilities will need to be removed and disposed of in an environmentally sound manner by the contractors.

Water Quality

Surface water pollution may result from uncontrolled discharges into freshwater or brackish water rivers (e.g. Nacala Porto and Nacala-a-Velha). Accidental spills of oil, polluted runoff from polluted areas and sediment transport. The latter impact is particularly significant when rehabilitation and / or construction activities occur within or in close proximity to surface water such as in the case of the rehabilitation and/or construction of heavy fuel oil supply facilities on the coastal strip. Polluted water flowing into surface water bodies could impact the aquatic organisms and affect the quality of life of downstream water users when river waters are involved. Many people are still using river water as a source for drinking water. Groundwater contamination may occur from percolation of oil and lubricants into soil. Nevertheless, waters disturbed by rehabilitation and construction activities are likely to recover when sediment or other pollution is controlled and natural processes are permitted to replenish. Agro-processing facilities can cause water pollution. The effluent standards

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in the applicable World Bank Group Agribusiness and Food Production Environmental, Health and Safety Guidelines, as well as the General Environmental, Health and Safety Guidelines need to be applied.

Flora and Fauna

Stream pollution by sediments from rehabilitation and construction activities often consists of suspended and settable solid particles that may coat, bury, suffocate or abrade living organisms such as eggs, larvae, fish, etc. Many aquatic invertebrates and fish may undergo changes in population density and community composition if high concentrations of suspended solids occur. Aquatic vegetation may be adversely affected by a reduction in photosynthesis due to high turbidity. Dredging may also increase turbidity and sediment load and reintroduce into suspension bottom sludge trapping toxic precipitates. The toxic sludge may be ingested or concentrated in freshwater or marine plant and animal species and biologically magnified in the food chains. Detonations from blasting for in-stream foundation excavations may produce underwater shock waves potentially injuring or killing fish in their sphere of influence.

Accidental oil spills in aquatic ecosystems can cause significant mortality in aquatic organisms. These spills need to be prevented at all means by locating fueling and machine maintenance stations at least 100 meter from rivers.

The installation of power transmission lines and towers in forest areas requires the clearing of tall trees within the rights-of-way/corridors of impact to prevent power outages through contact of branches with transmission lines and towers, ignition of forest fires, corrosion of steel equipment, blocking of equipment access and interference with critical grounding equipment. The construction of power generation facilities and sub-stations as well as the installation of water transmission mains and water distribution networks (Nacala Porto) also requires the clearing of trees and vegetation. Therefore, construction activities may result in loss of forests and plant cover, disturbance and loss of fauna habitats, weakening and degradation of soils, disturbance of the natural landscape and morphology. Thus, the adequate selection of the location of a facility or the right of way of transmission/distribution lines for electricity and water supply can significantly reduce impacts on biodiversity. The losses of trees need to be compensated in the same area.

Health and Safety

Safety issues may arise during the rehabilitation and construction phases if community’s access to works’ sites is not controlled. People may be injured by construction machinery or may fall in open trenches (roads, water supply and other works).

The rehabilitation/construction and operation of fuel supply facilities are associated with the risk of release of flammable material due to accidental damages to the fuel tanks from works-induced activities, such as landslides

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or collapse of tall structures such as cranes, and broken pipelines from works-induced vibration.

Health and safety measures at the construction sites, as described in the World Bank Environmental, Health and Safety Guidelines need to be applied and enforced by the contractors. These include the wearing of protective clothing, masks, construction site boots, helmets, gloves and others.

Pesticide Use and Management

The general use and management of pesticides including transport, storage and re-use by women and illiterate people can be associated with a multitude of risks to the users themselves and the social and natural environment. The management measures foreseen in the PMP need to be thoroughly applied to prevent any hazards from happening.

Socio-Economic

The rehabilitation and construction phase will generate a number of short-term job opportunities for the local people, as well as new opportunities to improve livelihoods for local communities and reduce poverty.

If adequate measures are not put in place, there will also be some potential negative socio-economic impacts, especially related to loss of land through the wrong selection of investors (land-grabbing) and loss of land and property as a consequence of involuntary resettlement. There is also a potential risk to the disturbance of physical cultural resources, and the potential negative impact of the influx of external workers, including foreign workers.

The installation of water supply pipelines in agricultural, housing and commercial lands may cause damage to cultivated crops (depending on how and when the land is taken from farmers to be passed on to PROJECT subprojects and other related initiatives), housing components (e.g. fences, walls, etc.) informal businesses (kiosks/vending stalls and barracas), including on components of other public and private utilities (e.g. telecommunication and electricity poles along the roads). This could be potentially associated with social problems such as the loss of houses and structures on the land, and facilities, and the potential negative impacts on livelihoods of the communities who lived on the land or used it for cultivation.

At the social level, there could be increased tensions between farmers with regard to land issues or between pastoralists and farmers related to wandering livestock. In some of the districts this is already a serious problem, which, if not adequately managed, could get worse as PROJECT progresses.

Activities that may also result in negative impacts are:

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the use of Genetically Modified Organisms (GMOs), which would make farmers for 100% dependent on multi-nationals and could have other negative impacts on poverty levels and health;

the introduction and adoption of innovative practices (cultural itineraries, post-harvest practices), e.g. through the increased use of fertilizers and pesticides;

support to semi-industrial processes and packaging, e.g. increased use of antibiotics to control diseases.

Overall, the project activities could have negative impacts on certain aspects of local livelihoods, housing, social and economic infrastructure and natural resources, not only because of the facilities and infrastructure that will be provided, but especially because of the influx of local, regional and even international investors and workers.

The environmental and social risk factors and challenges of the project will be: (i) unauthorized occupation (and non-consensual) of land belonging to local people; (ii) increased population, certainly due to an increasing number of influx because of the numerous mining concessions and/or economic boom in the region, which will result in increased needs of land; (iii) work conflicts and disputes for work between local people and people from other parts of the country and/or outside the country; (iv) the likely widespread of STIs including HIV/AIDS.

In addition to agriculture and housing land as described above, the influx of additional agricultural investors and of an external work force also has the potential to result in the need of increased infrastructure for water supply, sanitation, schools and health centers.

Physical Cultural Resources

In Mozambique it is common for projects of this nature to interfere negatively with sites of cultural, religious or historic importance (e.g. family and community cemeteries and other sacred places). Upon discovery of graves, cemeteries, cultural sites of any kind, including ancient heritage, relics or anything that might or believed to be of archeological or historical importance during any stage of project development, such findings should be immediately reported to the Project Management in order to ascertain the measures to be taken to protect such historical or archaeological resources. All forms of inappropriate removal/disposal should be avoided.

9.2 Other potential adverse socio-economic impactsResettlement

Although limited in size, it was observed that resettlement could take place in the project intervention areas. The potentially affected structures are permanent houses, shops, temporary sale points, food vending areas, farmed areas (crops), trees belonging to local people/entities, etc., which are very close to the existing roads or within the sites to be proposed sites for different interventions, e.g. roads, feeder roads, water supply water mains and distribution network, etc. Specific reference is made to interventions such as the installation of water mains and distribution network in yet undetermined sites in Nacala, the upgrading of the R605

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from N304 near Mphulu through Tsangano to Ulongwe (103.5 km); and R604 from N304 near Ulongwe through Domue to Furancungo (112.5 km) in Tete, etc. mainly due to their linear nature and the limited level of encroachment, in most cases, if not all, an abbreviated resettlement action plan (RAP) will suffice as in each case only a limited number of people and assets are likely to be affected.

Increase in HIV/AIDSs and STDs Cases

The spread of HIV/AIDS is likely to increase, especially during infrastructure development and construction, when workers from outside the region are brought into to it to live for long periods without their respective spouses. During operation interaction with truck drivers and other external workers with local women could be an open door for HIV/AIDS and/or ISTs propagation, especially among poor households, women and a younger generation often used as sex-workers to be self-sustained or sustain their families. Contractors should develop and implement an HIV/AIDS-IST prevention plan, which should include the training as an awareness raising campaign of their workers and the surrounding communities, provision of sufficient and free condoms of good quality to their work force, provide treatment for workers who are infected, etc.

Work/job conflicts between local people and external work force (national, regional and international)

If not adequately managed there could be real conflicts and/or misunderstandings surrounding the criteria for hiring of an external work force. Without clear criteria and communication local people might look at the hiring of external work force as unjust and detrimental to their immediate interest. This has the potential to cause conflicts and disruptions, including violence.

9.3 Potential positive impacts

Improvement of local infrastructure and particularly rural feeder roads, meant to connect agricultural producers to markets will lead to the adding of value to local agricultural products. The districts have specific roads that they regard as high priority and which they see as fundamental to facilitate liaison with the railway and make it possible for local farmers to use both the road and railway to transport their goods to the markets and processing centers.

The improvement of local infrastructure can also be expected to lay the foundations for the extension of telecommunication and internet networks (mobile), electricity and other amenities, which will contribute to making local economy more modern and competitive, as well as improve people’s livelihoods, habits (i.e. way of thinking and conducting their daily lives) and way of socializing (increase inter-village/inter-community exchanges, etc.).

Implementation of the Project will, among others, stimulate private investment in the agricultural sector. Serious constraints may be lifted by the establishment of basic infrastructure while providing considerable

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support to the private sector institutions and national as well as foreign initiatives throughout value chains.

In environmental terms, the project will result in better management of natural resources surrounding planned interventions.

In social terms, the positive impacts of project activities could be brought by external investors introducing new production systems, technologies and practices. It is expected that these investments will contribute to improved technology and farming systems (e.g. horticulture and rice cultivation), reduction of post-harvest losses, improving revenue and marketing conditions, a better utilization of production processing; broadening the range of products, strengthening the skills of the various actors in the rice and horticultural sectors (producers, traders, transporters, traders, etc.).

At the community level, in addition to the availability, accessibility and affordability of transport and telecommunication services, the expected impacts will be: improved food security, reducing the risk of hunger, improving nutrition and increased protein intake, and the creation of new and development of agricultural employment (reduction of unemployment and the exodus of young people, the creation of local employment opportunities, improved living conditions. Additionally, the project will open rural feeder roads that will facilitate production and economic flux within and among provinces and districts.

The project will provide opportunities for development of horticulture in the project area: (i) private actors will develop horticultural sectors - including high value-added products for export, (ii) models of win-win partnership between rural communities and private investors can be expected to emerge.

The project has the potential to strengthen the existing police and protection structures to ensure the safety of goods and people.

In summary, the following positive impacts can be expected, and hence further expanded:

Positive impacts of rural roads by facilitating rural/rural-urban trade (availability, accessibility and affordability).

Increased and improved water supply in the Nacala SEZ; Positive impacts of processing, storage and packaging facilities.

These will protect crops against insects and rodents, maintaining product quality, increasing life standards and consequently contribute to food security for rural populations and the general population;

9.4 Measures to mitigate negative impacts

A preliminary list of measures to be adopted to mitigate potential and significant negative impacts of the project is presented in the table below. Due to the localized and temporary nature of rehabilitation and

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construction works, fast recovery of the minor impacts will take place after construction is finished.

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Table 4: Measures to mitigate negative impacts

Potential negative impacts Mitigation measuresSoil and groundwater: During construction and rehabilitation: accidental discharge of on-site wastewater, hydrocarbons and chemicals can adversely affect groundwater and soil in the area;

Top soil management

During operation: Pollution of water and soil from pesticides and fertilizers and erosion from agricultural areas.

Soil erosion problems associated with construction

During construction: Mitigation measures include proper storage of hydrocarbons and dangerous chemicals on site and the installation of natural, concrete or synthetic liners beneath oil and chemical storage tanks and the placement of these structures within a bunded impermeable concrete structure of 110% the volume of the largest tank. Other important measures include proper surface drainage during both the construction and operation phases, minimization of on-site water and chemical usage (oil, lubricants and fuel), as well as limiting the exposure of the soil to accidental releases of pollutants. Chemicals used on-site should preferably be non-toxic and readily biodegradable. Fueling areas should have a concrete slab so that petrol and oil cannot escape into the environment. Drainage systems in maintenance areas should be equipped with an oil/water separator;

During construction put the top-soil apart and place it back on top after construction has finished.

During operation: Implementation of the provisions of the Pest Management Plan Only use approved pesticides Adequate disposal of obsolete pesticides Compliance with prescribed doses of pesticides Control of the periods of pesticide application Promoting the use of organic manure Training of stakeholders on the use of agro-chemical inputs Observance of recommendations for the use of fertilizers and pesticides bio control Rational use of fertilizers and pesticides Awareness and training of farmers Apply contour line farming in order to avoid erosion.

Focus on existing quarries and construction areas: Rehabilitation of affected areas, e.g. quarries and other construction areas. Put in place vegetative filters to filter sediments out of run-off. Rehabilitation works should start as soon as possible after the construction work is finished.

Air emissions: release of dust from land clearing, excavation and movement of earth materials, cut and fill operations, contact of construction machinery with bare soil, and exposure of bare soil and soil piles to wind.

Control techniques for minimizing PM emissions involve watering of surfaces, chemical stabilization, or reduction of surface wind speed with windbreaks or source enclosures. Covering the road surface with a new material of lower silt content, such as covering a dirt road with gravel or slag has also proved to be efficient. Regular maintenance practices, such as grading of gravel roads, also help to retain larger aggregate sizes on the traveled portion of the road and thus help reduce emissions.Low cost measures also include:

Proper site enclosure through appropriate hoarding and screening; On-site mixing and unloading operations;

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Potential negative impacts Mitigation measures

Agro-processing facilities from project associated investors

Proper handling of cement material; Maintaining minimal traffic speed on-site and on access roads to the site; Covering all vehicles hauling materials likely to give off excessive dust emissions; Ensuring adequate maintenance and repair of construction machinery and vehicles; Avoiding burning of material resulting from site clearance; Covering any excavated dusty materials or stockpile of dusty materials entirely by impervious

sheeting; Proper water spraying when necessary; The provision of water troughs at entry and exit points to prevent the carryover of dust emissions,

beyond the construction site

Measures to reduce truck traffic emissions include proper truck maintenance and the adoption of a traffic management plan while avoiding congested routes. Regarding on-site construction equipment, proper maintenance procedures and the quality of diesel fuel used are important to reduce emissions. Equipment should also be turned off when not in use, to reduce power needs and emissions of pollutants.

Agro-processing facilities can cause air pollution. The air emission standards in the applicable World Bank Group Agribusiness and Food Production Environmental, Health and Safety Guidelines, as well as the General Environmental, Health and Safety Guidelines need to be applied.

Noise: noise levels emitted during the construction/rehabilitation and operation may exceed acceptable noise level standards

Agro-processing facilities from project

Mitigation measures to be adopted mainly during construction and operation to minimize noise levels include but are not limited to:

Enclosing the site with barriers/fencing Effectively utilizing material stockpiles and other structures, where feasible, to reduce noise from

on-site construction activities Choosing inherently quiet equipment Operating only well-maintained mechanical equipment on-site Keeping equipment speed as low as possible Shutting down or throttling down to a minimum equipment that may be intermittent in use, between

work periods Utilizing and properly maintaining silencers or mufflers that reduce vibration on construction

equipment during construction works Restricting access to the site for truck traffic outside of normal construction hours Proper site logistics and planning Limiting site working hours if possible Scheduling noisy activities during the morning hours Informing the locals when noisy activities are planned

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Potential negative impacts Mitigation measuresassociated investors Enforcing noise monitoring

Agro-processing facilities can cause noise pollution. The noise emission standards in the applicable World Bank Group Agribusiness and Food Production Environmental, Health and Safety Guidelines, as well as the General Environmental, Health and Safety Guidelines need to be applied.

Solid and liquid wastes:during construction/rehabilitation and operation, there will be generation of construction and operation debris as a result of various construction and operation activities

Hydrocarbons (waste oils)

Agro-processing facilities from project associated investors

The generated solid materials can be used for reclamation purposes whenever applicable. However, care should be taken to ensure the absence of contaminated fill material and the adequacy of the physical and chemical properties of such material to limit potential adverse impacts on water and soil and ensure project safety. Construction and demolition wastes can also be minimized through careful planning during the design stage, by reducing or eliminating over-ordering of construction materials to decrease waste generation and reduce project costs. The contractor should carry out sorting of construction and demolition wastes into various categories and adopt re-use/recycle on site whenever deemed feasible.Chemical wastes generated during the construction phase include containers that were used for storage of chemical wastes on site, the chemical residue as well as contaminated material. Rehabilitation of fuel storage facilities may involve the removal of contaminated soils around fuel dispensers, piping, and tanks, as well as bulky, inert and contaminated solid waste items such as damaged tanks. Storage of hazardous waste should take place in a separate area that has an impermeable floor, adequate ventilation and a roof to prevent rainfall from entering. In addition all chemical wastes should be clearly labeled in Portuguese and, stored in corrosion resistant containers and arranged so that incompatible materials are adequately separated. General refuse generated on-site during the construction phase should be stored in enclosed labeled bins or compaction units separate from construction and chemical wastes. General refuse is generated largely by food service activities on site, therefore, where feasible, reusable rather than disposable dishware should be promoted. Aluminum cans, glass, plastics, wood and metals may be recovered from the waste stream by individual collectors if they are segregated and made easily accessible, so separate, labeled bins for their storage should be provided.

Hydrocarbons should be stored on an impermeable concrete floor with concrete bunding. It should be negotiated with the new oil supplier to take back the waste oils for recycling by a MICOA authorized recycler.

When rehabilitating areas where, at present, oil storage are located and sites are hydrocarbon contaminated, it will be necessary to clean up the site completely before starting any rehabilitation activities. A rapid environmental audit will need to be conducted to identify the action plan for site clean-up.

Agro-processing facilities can cause solid waste pollution. The solid waste management practices in the applicable World Bank Group Agribusiness and Food Production Environmental, Health and Safety

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Potential negative impacts Mitigation measuresGuidelines, as well as the General Environmental, Health and Safety Guidelines need to be applied.

Water quality: the primary sources of potential impacts to water quality will be from pollutants from site runoff, accidental spills, which may enter surface waters (marine and river) directly or through the storm drainage system

Agro-processing facilities from project associated investors

Surface run-off from the construction site should be directed into storm drains through adequately designed sand/silt removal facilities such as sand traps, silt traps and sediment basins. If oil is present, oil/water separators should be installed, which should be regularly cleaned. Channels, earth bunds or sand bag barriers should be provided onsite to properly direct storm water to silt removal facilities before discharge into the surrounding waters. Silt removal facilities should be maintained with deposited silt and grit being regularly removed after each rainstorm to ensure that these facilities are functioning properly at all times. Moreover, the rainwater pumped out from trenches or foundation excavations should be discharged into storm drains via silt removal facilities and not directly to the aquatic environment. Open stockpiles of construction materials on site should be covered with tarpaulin or similar fabric during rainstorm events to prevent the washing away of construction materials, while earthworks should be well compacted as soon as the final surfaces are formed to prevent erosion especially during the wet season. Water used in vehicle and plant servicing areas, vehicle wash bays and lubrication bays should be collected and connected to foul sewers via an oil/grease trap. Oil leakage or spillage should be contained and cleaned up immediately. Spent oil and lubricants should be collected and stored for recycling or proper disposal and should be stored on impermeable and bunded surfaces. All fuel tanks and chemical storage areas should be provided with locks. Fuel tanks should be placed in concrete bunded areas of 110% of the volume of the largest fuel tank.

The contractor should also prepare guidelines and procedures for immediate cleanup actions following any spillages of oil, fuel or chemicals.Sewage from toilets, kitchens and similar facilities should be contained in sanitary cesspools before being transported by trucks to a nearby wastewater treatment plant. As for the wastewater generated from concreting, plastering, internal decoration, cleaning work and other similar activities, it should undergo large object removal by bar traps at drain inlets.

Agro-processing facilities can cause water pollution. The water effluent standards in the applicable World Bank Group Agribusiness and Food Production Environmental, Health and Safety Guidelines, as well as the General Environmental, Health and Safety Guidelines need to be applied.

Flora and fauna: stream pollution by sediments from rehabilitation and construction activities by suspended and settable solid particles that may coat, bury, suffocate or abrade living organisms. Many aquatic invertebrates and fish may undergo changes in population density and community composition if high

To minimize stream pollution by sediments, it is recommended to reduce or prevent soil erosion from the construction site by:

Scheduling construction/rehabilitation to avoid heavy rainfall periods (i.e., during the dry season) to the extent practical

Contouring and minimizing length and steepness of slopes Protecting to stabilize exposed areas Install sediment traps, e.g. reed screens Re-vegetating areas promptly

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Potential negative impacts Mitigation measuresconcentrations of suspended solids occur. Aquatic vegetation may be adversely affected by a reduction in photosynthesis due to high turbidity.

Accidental hydrocarbon spill will have a detrimental impact on aquatic life.

Deforestation, soil degradation through erosion, habitat destruction may occur during clearing

Designing channels and ditches for post-construction flows

Additional measures include: Carefully select right-of ways/corridors of impact to avoid important natural areas such as wild lands

and sensitive habitats Utilize appropriate clearing techniques (hand clearing vs. mechanized clearing) Maintain native ground cover beneath lines Replant disturbed sites soon after construction/rehabilitation Manage right-of-ways/corridors of impact to maximize wildlife benefits

General implementation and enforcement of good agricultural practices and crop management, e.g. contour line farming, in order to reduce erosion.

Prevent accidental hydrocarbon spills by storing hydrocarbons into concrete bunded areas and equip areas where hydrocarbons are used with oil/grease/water separators.

Compensate lost trees in the same area. Install erosion prevention and control measures as mentioned above. Avoid sensitive habitat by fencing the area, so that the habitat cannot be entered by trucks and workers.

Health and safety: occurrence of accidents (direct and indirect) to workers on-site, pedestrians, and machine operators or passengers during construction/rehabilitation and operation

Occupational health and safety measures should include: Restriction of access to the construction site by proper fencing with site boundaries adjoining roads,

streets or other areas accessible to the public should undergoing high enough fencing along the entire length except for a site entrance or exit

Establishment of buffering areas around the site Provision of guards on entrances and exits to the site Installation of warning signs at the entrance of the site to prohibit public access Provision of training about the fundamentals of occupational health and safety procedures Provision of appropriate personal protective equipment (PPE) (impermeable latex gloves, working

overalls, safety boots, safety helmets, hearing protecting devices for workers exposed to high noise levels, and lifesaving vests for construction sites near water bodies)

Ensuring that workers can swim (at work sites near water) and that lifesaving rings are available at the worksite, near water

Ensuring that the protective material is being used wherever it is required Ensuring that especially sensitive or dangerous areas (like areas exposed to high noise levels, areas

for especially hazardous work etc.) are clearly designated Ensuring that all maintenance work necessary for keeping machines and other equipment in a good

state will be regularly carried out.

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Potential negative impacts Mitigation measures

Development of agriculture might increase the prevalence of water-borne diseases (intestinal and urinary bilharzia and malaria)

Ensuring that the workers (and especially those doing hazardous work or otherwise exposed to risks) are qualified, well trained and instructed in handling their equipment, including health protection equipment

In case blasting is required the Contractor should work according to an approve Blasting Plan, which need to be approved by the Supervising Engineer and the Client

Provision of adequate loading and off-loading space Development of an emergency response plan Provision of on-site medical facility/first aid Provision of appropriate lighting during night-time works Implementation of speed limits for trucks entering and exiting the site

Regarding hazardous substances, the following measures should be implemented: Ensuring that hazardous substances are being kept in suitable, safe, adequately marked and locked

storing places Ensuring that containers of such substances are clearly marked, and that material safety data sheets

are available Ensuring that all workers dealing with such substances are adequately informed about the risks,

trained in handling those materials, and trained in first aid measures to be taken in the case of an accident.

Designating an area where contaminated materials and hazardous waste can be stored for proper disposal according to environmental guidelines in force in the country and as specified in the applicable World Bank Group Environmental, Health and Safety Guidelines of April 2007.

Regarding waterborne and water-related diseases substances, the following measures should be implemented by the contractor:

The adoption of good housekeeping practices for ensuring hygiene on site The elimination of pools of stagnant water, which could serve as breeding places for mosquitoes

The provision of bed nets for workers living on site. Ideally, these nets should be treated with an insecticide

The appropriate elimination of waste of all types, including wastewater

Monitor the prevalence of intestinal and urinary bilharzia and malaria. If the prevalence increases implement the following:

Distribute long-lasting insecticidal impregnated mosquito bed nets (LLINs) to affected communities, to control malaria

Mass treatment of high risk groups with praziquantel need to be carried out to control intestinal and urinary bilharzia

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Potential negative impacts Mitigation measures Minimize contact with infected water by requiring people to wear boots and gloves Support to access to drinking water and autonomous sanitation facilities Reduce fecal and urinary pollution of surface waters by prohibiting defecation and urine in water

and putting in place sanitation systems (latrines, etc.) Educate affected communities with regard to these water-borne diseases Follow WHO guidelines

Socioeconomic impact including resettlement, reduction of arable and pastoral land, prevention of HIV/AIDS and influx of external workers: potential loss of land or land use, interruptions to means of livelihood, disturbances to cultural resources, and influx of foreign workers

Select project sites and rights-of-way (ROW) in a consultative and participatory manner so to avoid important social, agricultural, and cultural resources and avoid areas of human activity

Utilize alternative designs to reduce land and ROW width requirements and minimize land use impacts

Ensure a high rate of local employment to minimize influx of foreign contract workers: preferred preference to local people in order to avoid social conflicts

Manage resettlement in compliance with the World Bank Safeguard Policy on Involuntary Resettlement OP/BP 4.12

Prevention of STDs, HIV/Aids: Create awareness and educate workers and nearby communities. Provide free, sufficient, good quality condoms for personnel. Provide treatment for infected personnel

Supply and enforce wearing protective equipment (helmets, boots, dress, gloves, masks, goggles, etc.) by workers

Strictly follow government instructions on the hiring of foreign workers and clarify criteria for hiring them

Favor local labor where the required skills are available Environmental management of construction waste (installation of litter bins, regular collection and

disposal in authorized sites) Awareness on respect for local customs Dissemination of the use of farmyard manure Rational use of mineral fertilizers (avoiding excess nitrogen fertilizer) Leave land fallow to restore soil fertility Cover bare soil with a vegetation cover to reduce soil erosion Educate and training of farmers

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The planning and implementation of mitigation measures will be done under the guidance and responsibility of the two safeguard staff at ZVDA and GAZEDA and contracted out on a competitive basis to service providers.

Contractors for simple subprojects will be mainly responsible for the implementation of the SECs (Social and Environmental Clauses), which will be included in the bidding documents and will be part of their contractual obligations.

For more complex projects the Contractors will be required to prepare and implement their own Contractor Environmental and Social Management Plan (CESMP). For this purpose they will need to employ qualified staff. These requirements will need to be included in the bidding documents and in their contracts.

The Supervising Engineers will by contractual arrangements be made responsible for the adequate implementation of the SECs and CESMPs. The Supervising Engineer will need to employ qualified staff for this purpose.

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10 GUIDELINES FOR SUB-PROJECT SCREENING, PREPARATION, APPRAISAL,

APPROVAL AND MONITORINGThere will be the need to ensure that potential environmental and social impacts are adequately addressed through the institutional arrangements and procedures used by the Project interventions for managing the identification, preparation, approval, environmental licensing, implementation, monitoring, evaluation and auditing of sub-projects.

The Project has been classified as Category B project. Most of the sub-projects fall within this category, while some will be Category C. As per both Mozambican and WB regulations Category B projects require less stringent ESIA/ESMP processes due to the fact that the environmental and social impacts are easier to deal with; few if any of them have irreversible effects; and in most cases appropriate mitigation measures can be readily designed. As is the case with any intervention environmental and social best practices recommend that negative impacts be avoided and/or minimized and that adequate and implementable mitigation and management measures be put in place early enough where avoidance is not feasible.

The key to environmental and social management is the environmental and social screening process, which may or may not result in the preparation of a full ESIA/ESMP document, a freestanding ESMP or no action need to be taken. The screening process should follow the Safeguard Policy OP 4.01/BP on Environmental Assessment of the World Bank and the Mozambican Regulations for Environmental and Social Impact Assessment. The screening process will be carried out at specific sub-project sites in the field once they have been identified. The environmental and social screening process is necessary to identify if the subprojects will cause environmental and social impacts. The environmental and social screening is part of the preparation and approval process of subprojects financed by the Project.The objectives of the ESMF screening process include:

a) determine which construction/rehabilitation and operation activities are likely to have potential negative environmental and social impacts;

b) determine the level of environmental and social work required, including whether an ESIA/ESMP or a freestanding ESMP is required or no action need to be taken;

c) determine appropriate mitigation measures for addressing adverse impacts;

d) incorporate mitigation measures into the development plans for the subproject;

e) indicate the need for a Resettlement Action Plan (RAP), which would be prepared in line with the Resettlement Policy Framework (RPF), prepared for the Project;

f) facilitate the review and approval of the construction/rehabilitation and operation proposals; and

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g) provide guidance for monitoring environmental and social parameters during the implementation and operation of project activities;

h) ensure the final environmental and social evaluation of the project.The extent of environmental and social work that might be required, prior to the commencement of construction/rehabilitation works, and during operation will depend on the outcome of the screening process.

Below, critical aspects to be adopted to avoid/minimize negative impacts as well as mitigate and manage them correctly are suggested.

10.1 Screening of Project Activities and Sites

Depending on the size, nature and perceived environmental consequences of a project Mozambican Regulation for ESIA (Decree 45/2004) provides for three project categories, namely A, B and C. Where it is clear that project activities fall under Category B, a simplified ESIA and RAP needs to be carried out. The screening process will be used to determine the appropriate types of environmental follow-up measures, depending on the nature, scope, and significance of the expected environmental and social impacts from each of the Project subproject activities.

Both the Environmental and Social Screening Form (ESSF in Annex 2.) and the Annex 3 of Decree 45/2004 will be completed by ZVDA/GAZEDA Environmental, Social, Health and Safety staff. The screening forms, when correctly completed, will facilitate the:

identification of potential environmental and social impacts and the identification of health and safety risks;

determination of their significance; assignment of the appropriate environmental category; and determination of the need to conduct an ESIA/ESMP, a freestanding

ESMP and/or to prepare Resettlement Action Plans (RAPs) where required or determine that no action need to be taken.

The responsible MICOA structure on Provincial or District level will need to confirm the abovementioned screening process to comply with Mozambican environmental legislation, the screening process will be conducted in the following manner:

Preparation activities for the screening process will include a desk appraisal of the intervention (e.g. construction/rehabilitation and operation plans) for sub-project related infrastructure.

Subsequent to the desk appraisal of the interventions, the initial screening of the proposed sub-project activities will be verified in the field, with the Environmental and Social Screening Form (ESSF) prepared by the Project Safeguard staff. The District Environmental Officers, stationed at the SDPI and/or municipalities, will do the verification. Subsequently, they will oversee the preparation and implementation of the required measures.

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10.2 Assigning the Appropriate Environmental and Social CategoriesThe ESSF, when completed, will provide information on the assignment of the appropriate environmental and social category to a particular subproject. The Provincial Departments of Environmental Impact Assessment in collaboration with the Environmental and Social Specialists from the Project Coordination/ZVDA/GAZEDA will be responsible for categorizing a subproject as either A, B or C. It is not expected that any of the subprojects will be Category A through the application of OP/BP 4.01.

Category A and more complex Category B sub-project activities would have significant and long-term adverse environmental and social impacts and therefore would require an ESIA/ESMP and/or RAP, in accordance with Mozambican legal requirements. Category B projects are those with one or a few potentially significant adverse impacts, which would require an Environmental and Social Management Plan (ESMP) to address specific impacts during project construction or operation, but not a full ESIA. Category C projects would not involve any significant adverse environmental impacts; they would therefore not require an ESIA or a specific ESMP, but they would require adherence to good environmental practices, including any applicable Environmental and Social Clauses to be included in the Contractor’s Contracts.

The assignment of the appropriate environmental category will be based on the provisions of the World Bank Operational Policy (OP 4.01/BP) on Environmental Assessment and the Mozambican ESIA Guidelines.

According to the Mozambican Regulation projects requiring Resettlement Action Plans (RAPs) fall automatically under Category A and these would be reviewed and approved by MICOA’s National Directorate of Environmental Impact Assessment in Maputo and should be consistent with the Resettlement Policy Framework. The ESIA, ESMP or RAP should be disclosed in country at the project sites and on the MPD website and the World Bank Infoshop prior to commencement of any project construction activities. In addition, Project Affected People (PAP) should have been compensated before any construction activity can start. Since the WB policies will apply under this project, in the specific case of resettlement MICOA’s role will be mainly confined to confirming the fact that the sub-projects are not associated with massive resettlement as to fall under Category A.

10.3 Carrying out Environmental and Social WorkAfter reviewing the information provided in the Environmental and Social Screening Form (ESSF) and the Preliminary Environmental Information Sheets and having determined the appropriate environmental and social category, the Provincial Directorate of Environment in close collaboration with the Project Coordinating Unit will determine whether (a) the application of simple mitigation measures outlined in the Environmental and Social Checklist (Annex 4) and Environmental and Social Clauses for Contractors (Annex 5) will suffice (Category C); whether (b) an Environmental and Social Management Plan (but no ESIA) needs to be prepared to address specific environmental impacts (Category B); or

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whether (c) a full ESIA/ESMP will need to be carried out (Category A or complex Category B).

10.4 Environmental and Social Checklist: The Environmental and Social Checklist in Annex 4 will be completed by the two qualified Environmental and Social Specialists of the Project Coordination Unit. Most of the subprojects will be categorized as Category B, which may not require a full ESIA, and will benefit from the application of mitigation measures outlined in the checklist. In situations where the screening process identifies the need for land acquisition, a RAP shall be prepared and disclosed consistent with OP/BP 4.12 guidelines.

If there is already an existing design for a subproject, the Provincial Directorate of Environment in collaboration with ZVDA/GAZEDA and the SECU will assess the potential environmental and social impacts on the chosen site and on the community and will recommend modification of the design or the location in order to mitigate or reduce these potential impacts.

10.5 Environmental and Social Impacts Assessment (ESIA)Certain subprojects will be found to require an ESIA. In such a case, the ESIA would identify and assess the potential environmental and social impacts of the proposed activities, evaluate alternatives, as well as design and implement appropriate mitigation, management and monitoring measures. These measures would be captured in the Environmental and Social Management Plan (ESMP) which will be prepared as part of the ESIA Document.

Where required, preparation of the ESIA that includes an ESMP, and the preparation of the RAP will be carried out by the Borrower in consultation with the relevant stakeholders, including potentially affected persons. Environmental and Social Specialists of the Project Implementation Units, in close consultation with the Provincial Directorate of Environment and/or DNAIA and on behalf of the District Governments or Municipalities, will arrange for the (i) preparation of ESIA/ESMP or RAP terms of reference; (ii) recruitment of a consultant to carry out the ESIA/ESMP or RAP; (iii) public consultations and participation; and (iv) review and approval of the ESIA/ESMP or RAP following the national ESIA and RAP approval process. ESIAs, ESMPs and RAPs also need to be sent to the World Bank for approval and disclosure.

10.6 Subproject Review and ApprovalThe Environmental and Social Specialists at ZVDA/GAZEDA will fill in the environmental and social screening forms and identify the mitigation measures presented in the environmental and social checklists or additional ones not mentioned in the checklists in order to classify the sub-project. Where an ESIA/ESMP or a freestanding ESMP has been carried out, the Environmental and Social Specialists in collaboration with the Provincial Directorate of Environment/DNAIA will review the reports to ensure that all environmental and social impacts have been identified and that effective mitigation measures have been proposed, including

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institutional arrangements for the implementation of the ESMP and a budget.

Based on the results of the above review process, and discussions with the relevant stakeholders and potentially affected persons, the ZVDA/GAZEDA Environmental and Social Specialists, in case of sub-projects that do not require an ESIA/ESMP or a freestanding ESMP will make recommendations to the Municipal or District Government to go ahead with the project implementation.

It is a known fact that at present it is mainly at the provincial and central levels that solid capacity exists for conducting the ESIA/ESMP processes. At the district and municipal levels such capacity is either non-existent or weak. To ensure that all stages of the process including the verification of screening forms is completed correctly for the various sub-project locations and activities, training will be provided to members of the SDPI and Municipalities. Technical advice and training on environmental and social impacts assessment and implementation of mitigation measures will be provided by a contracted safeguards specialist or by the Environmental and Social Specialists at ZVDA/GAZEDA, with assistance of World Bank safeguard specialists.

10.7 Participatory Public Consultation and DisclosureLocal people and communities as well as their representatives need to be continuously involved in the decision-making related to the diversity of Project interventions. The various pieces of Mozambican legislation on land issues place public consultation and participation at the top of the agenda. The Project will ensure that the provisions in those regulatory documents are strictly followed. Local people/communities and their representatives are properly placed to take care of the needs of local stakeholders and to promote the local resource management capacity.

The public participation process (PPP) is an intrinsic component of the ESIA/ESMP process with the following main objectives:

Keep Project Interested and Affected Parties (PI&APs) informed about key issues and findings of each stage of the ESIA;

Gather concerns and interests expressed by various project stakeholders;

Obtain contributions/opinions of stakeholders in terms of avoiding/minimizing possible negative impacts and maximize positive impacts of the project.

Finally, support the social dialogue and identify from the onset, stakeholders’ perceptions and expectations, which can contribute to the action planning and effective communication in order to minimize the impacts of the project. The process also allows for rethinking the project’s technical aspects.

For the PPP to be effective there are norms and procedures to be observed throughout.

The ESIA/ESMP process emphasizes the clear need for frequent interaction and communication between the general public, parties affected by the

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proposed Project, local NGOs, external interested and concerned organizations, as well as Project scientists and engineers.

Each aspect of the technical investigations generally includes a data collection and verification phase, followed by analysis and evaluation, then synthesis and conclusions. The findings of each phase are communicated as appropriate to external parties.

In terms of the ESIA Regulations in force in Mozambique (Decree 45/2004 and Diplomas 129/2006 and 130/2006 and other related regulatory instruments) mandatory public consultation meetings mark the end of each main phase, e.g. scoping and definition of terms of reference as well as a public consultation on the draft final ESIA document. Under Mozambican legislation, these should be announced at least 15 days prior to the meeting day. In addition to being invited by public notices, a certain number of participants to these meetings should be directly invited by letters of invitation drafted by the Consultant, issued, and distributed by the project developers. In this case the PCU would be at the forefront in ensuring that relevant stakeholders are invited and participate in the meetings.

During the meetings, the ESIA team in collaboration with the developers’ (PCU/ZVDA/GAZEDA) representatives and the engineering team, maintain PI&APs informed of the main issues and findings of each phase and collect concerns and interests expressed by the various project stakeholders. Public meetings are non-technical in nature and are expected to contribute to get stakeholders' inputs in terms of avoiding/minimizing possible negative impacts and optimizing the positive impacts of the subproject.

It is fundamental that by all means the Project does not contribute in any way to create land conflicts and/or exacerbate any such conflicts. Projects, such as this, have as objective to create jobs, construct infrastructure and introduce modern technologies, but if not planned and conducted properly they can also contribute to increase the number of landless people, make local food insecurity worse, cause environmental damages, stimulate rural-urban migration, etc., which are project outcomes to be avoided.

In compliance with both the GoM regulation and World Bank guidelines, before a sub-project is approved, the applicable documents (ESIA, ESMP and/or RAP) must be made available for public review at a place easily accessible to beneficiary communities (e.g. at a local government office, at the DNAIA/DPCA/SDPI/SDAE), and in a form, manner and language that can easily understood, including the non-technical summaries of the main documents. They must also be forwarded to the World Bank for approval and disclosure at the Public Information Center in Maputo and at the World Bank Infoshop in Washington DC. Especially as part of ESIAs/ESMPs and RAPs public consultation and participation processes, Mozambican guidelines also have similar pre-requisites, which should be strictly followed under the Project.

During the preparation of the ESMF public consultation was carried out. Two main phases were considered. The first was during the initial stage (in October 2012) as way of getting the preliminary views from main stakeholders on possible project characteristic and impacts as well as on issues that should deserve particular attention. The second took place after

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the draft of the ESMF, PMP and RPF (in January 2013) with the aim of informing stakeholders about the project structure and contents, including the project geographical boundaries and to get their views on issues to be reexamined, project’s possible environmental and social impacts and possible ways of mitigating them. The feedback received from stakeholders has been integrated in many sections of the three documents including the ESMF and are also summarized in Annex 6. It also includes the names of the people that have been consulted. As stated earlier, the final ESMF will be disclosed in-country and in the World Bank Infoshop prior to appraisal.

10.8 Annual Monitoring Reports and reviewMonitoring of the compliance of project implementation with the mitigation measures defined in its ESIA/ESMP, PMP and/or RAP will be carried out jointly with communities, the Environmental and Social Specialists of the Project Coordination Units, MICOA’s local representatives, extension workers and the Service Provider (i.e. CSO) responsible for implementing the Project.

District (SDPI) and municipal authorities should supervise the monitoring activities and are required to report annually on sub-project activities during the preceding year. The information to be included in these annual reports to capture experience with implementation of the ESMF procedures will be included in an annex to be prepared as part of the annual report, which will be used as a guide.

Compliance monitoring comprises on-site inspection of activities to verify that measures identified in the ESMP, PMP and/or RAP are being implemented. This type of monitoring is similar to the normal tasks of a supervising engineer whose task will be by contractual arrangement to ensure that the Contractor is adhering to the contractual obligations with regard to environmental, social, health and safety practices during construction, as prescribed in the Social and Environmental Clauses (SEC) included in the bidding documents and Contracts or as described in the Contractor ESMP.

MICOA, through DPCA and DNAIA (or an external consultant) will have the responsibility of conducting the environmental, social, health and safety inspection. An annual inspection report must be submitted (together with the monitoring report) to the MPD and the World Bank for review and approval.

Independent local consultants, local NGOs or other service providers that are not otherwise involved with the Project, thus independent, may carry out annual reviews. Annual review should evaluate the annual monitoring report from district authorities and the annual inspection report from DPCA/DNAIA.

It is worth pointing out that annual reviews are not normal for ESIAs/ESMPs with the current practices. The Project Coordination Unit at central (PPCU) and provincial levels (ZVDA and GAZEDA) need to make dedicated efforts to ensure that this work is done properly.

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10.9 Environmental and Social Audit An external independent environmental, social, health and safety audit will be carried out at mid-term of project implementation and at the end of the project. The audit team will report to the MPD and the World Bank, who will deal with the implementation of any corrective measures that are required. The audits are necessary to ensure that (i) the ESMF process is being implemented appropriately, and (ii) mitigation measures are being identified and implemented accordingly. The audit will be able to identify any amendments in the ESMF approach that are required to improve its effectiveness.

The Audit Reports will include: A summary of the environmental, social, health and safety

performance of the sub-projects, based on the ESIAs, ESMPs, RAPs, PMP and the implementation of the Environmental and Social Clauses in the Contractor Contracts and Contractor ESMPs;

A presentation of compliance and progress in the implementation of the sub-projects ESMPs;

A summary of the environmental and social monitoring results from individual sub-projects monitoring measures (as set out in the sub-project ESMPs).

The main tasks of the audit will be to:

Consider the project description; Indicate the objective, scope and criteria of the audit; Verify the level of compliance by the developer with the conditions of

the ESMP, PMP, RAP, Environmental and Social Clauses and Contractor ESMPs;

Evaluate the developer’s knowledge and awareness of and responsibility for the application of relevant legislation;

Review existing project documentation related to all infrastructure facilities and designs;

Examine monitoring programs, parameters and procedures in place for control and corrective actions in case of emergencies;

Examine records of incidents and accidents and the likelihood of future occurrence of the incidents and accidents;

Inspect all buildings, premises and yards in which manufacturing, testing and transportation takes place within and without the project area, as well as areas where goods are stored and disposed of and give a record of all significant environmental, social, health and safety risks associated with such activities;

Examine and seek views on health and safety issues from the project employees, the local and other potentially affected communities; and

Prepare a list of health and safety and environmental and social concerns of past and on-going activities.

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10.10 Other Important Issues10.10.1 Integration and harmonization with the district land use plans

In addition to defining the district as the main territorial planning unit the GOM, through the Land Planning Law (Law n.º 19/2007 of 18 of July) and its regulation, requires all districts to have land use plans. As stated above district land use plans are meant to provide adequate zoning for interventions based on suitability of the different land areas and respective pre-conditions. These plans are a way of exercising holistic and integrated approach to land resources management, including strategic planning. The siting of subprojects will benefit immensely from being harmonized with the district land use plans. An adequate zoning at the district and/or municipal level should be able to provide sound guidance regarding the best siting for each specific subproject.

However, due to a multitude of reasons most of the districts are still in the process of finalizing these plans. It is possible that by the time the Project will be implemented these plans will not yet be available in their final form. In some other cases existing plans will not of the best quality and the Project should endeavor to assist in revising the plans to bring them up to standard.

Given the complexity of this phased project, it is Highly Recommended to employ, as part of the project management by ZVDA and GAZEDA, qualified Safeguards Specialists. It is also recommended to employ a Communication Officer in the Project Coordination Unit in Maputo. This staff will have the overall responsibility to ensure due and timely compliance with the agreed recommendations in the safeguards documents. These specialists will participate in the joint supervisions mission with the WB and subsequently ensure timely implementation of agreed Safeguards Action Plans (SAP).

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11 GUIDELINES FOR ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN AND

MONITORING REQUIREMENTS11.1 Environmental and Social Management Plan (ESMP)

A site specific ESMP should be conducted as part of the ESIA process, as per the Regulamento do Processo de Avaliação do Impacto Ambiental (RPAIA)'s point (g) of Article 12, and should include the “monitoring of impacts, prevention plans, as well as accident contingencies”.

In an ESMP, various mitigation measures are organized into a well-formulated plan to guide the planning, design, construction and operation of the planned interventions. Under the ESIA/ESMP process and particularly under this ESMF, what is described below should be viewed as dynamic, which may require updating or revision during the implementation of the activities.

An effective ESMP for specific sub-projects will be a practical document, which will precisely set out both the goals and actions required in mitigation.

The ESMP covers a set of measures that need to be taken to ensure that impacts are dealt with in the following hierarchical order23:

Avoidance: avoiding activities that could result in adverse impacts. Avoiding resources or areas considered as sensitive

Prevention: preventing the occurrence of negative environmental and social impacts and/or preventing such an occurrence from having negative environmental and social impacts

Preservation: preventing any future actions that might adversely affect an environmental and social resource. Typically achieved by extending legal protection to selected resources beyond the immediate needs of the project

Minimization: limiting or reducing the degree, extent, magnitude or duration of adverse impacts. This can be achieved by scaling down, relocating, redesigning elements of the project

Rehabilitation: repairing or enhancing affected resources, such as natural habitats or water sources, particularly when previous development has resulted in significant resource degradation

Restoration: restoring affected resources to an earlier (and possibly more stable and productive) state, typically ‘background / pristine’ condition

Compensation: creation, enhancement or protection of the same type of resource at another suitable and acceptable location, compensating for lost resources

As stated above, the management measures set forth in the ESMPs for more complex sub-projects and the Environmental and Social Clauses (SECs) for simple sub-projects will be included in the bidding documents 23 Ref: The World Bank. Environment Department. January 1999. Environmental Management Plans. Environmental Sourcebook Update. Number 25

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and in the various contractual clauses for the design, construction and appropriate operation of the interventions to be adopted. All construction contracts should comply with the Environmental and Social Clauses and if relevant with the ESMP and Contactor ESMP prepared for the specific sub-project. Their implementation is the responsibility of the contractors. The Supervising Engineers will be required to monitor the adequate implementation of these clauses, ESMPs and CESMPs. For complex sub-projects the contractors will be required to prepare and implement his/her own Contractor ESMP and should employ an experienced environmental, health and safety specialist for this purpose. The Supervising Engineers will be required by contractual arrangement to supervise the adequate implementation of these Contractor ESMPs, other ESMPs or SECs and should employ an experienced environmental, health and safety officer for this purpose.

A series of steps to be followed to ensure that agriculture under the Project follows the best practices this document includes an annex on Good Agricultural Practices - Hygiene and Safety (Annex 7), which should be creatively followed where the Project will be supporting agricultural sub-projects.

The additional management actions may include the preparation of Integrated Pesticides Management Plans (PMPs) and/or Resettlement Action Plans (RAPs).

11.2 Pest Management Plan

Agricultural subprojects can raise a host of pest management issues, such as:

New land-use development or changed cultivation practices in an area;

Expansion of agricultural activities into new areas; Diversification into new agricultural crops, particularly if these tend

to receive high usage of pesticides - e.g. cotton, sugar cane, vegetables and rice, as well as increased doses of chemical fertilizers;

Intensification of existing low-technology agriculture systems

Both the WB and the GOM support strategies that promote integrated pest management (IPM) approaches, such as biological control, cultural practices, and the development and use of crop varieties that are resistant or tolerant to the pest. The purchase of pesticides may be permitted when their use is justified under an IPM approach and if sufficient capacity exists for pest and pesticide management.

In addition to agricultural insect pests and plant diseases, pests also include weeds, birds, rodents, and human or livestock disease vectors.

Mozambican regulation on pesticides and World Bank Safeguard Policy on Pest Management OP 4.09 conform to the specifications of the World Health Organization (WHO) and Food and Agriculture Organizations of the United Nations (FAO). There are no specific policies about pest management and crop protection in the context of IPM approaches in

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Mozambique. Research into plant health and to a certain extent IPM approaches are carried out by IIAM (National Agrarian Research Institute) and the Faculty of Agronomy and Forestry (FAEF) of the Eduardo Mondlane University (UEM). Under these agencies, IPM research will continue and the knowledge will be passed on to extension services as it becomes available.

Given the complexities of the pest management issues under a project like this a separate Pest Management Plan has been prepared and disclosed, which should be used as part of this ESMF.

11.3 Involuntary Resettlement (Resettlement Action Plan)

Both, the Mozambican legislation Decree 31/2012 (“Regulation on the Resettlement Process Resulting from Economic Activities”) and other relevant national laws and regulations (see Chapter 7) as well as the World Bank Safeguards Policy on Involuntary Resettlement (OP/BP 4.12) will apply to any sub-project with implications on land expropriation. In cases where the Mozambican regulation differs from OP/BP 4.12, therefore OP/BP 4.12 prevails.

As extensively explained in Chapters 6 and 7 the policies in force require that the following approach be adopted in dealing with resettlement issues:

“Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs. Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs.

Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher”.

In terms of definition the WB adopts a broad view and the phenomenon “is not restricted to its usual meaning - that is "physical displacement," it also includes economic displacement. Depending on the cases, a resettlement action may include (i) loss of land or physical structures on the land, including business, (ii) the physical movement, and (iii) the economic rehabilitation of project affected persons (PAPs) in order to improve (or at least restore) the levels of income or livelihood prevailing before the action causing the resettlement has taken place”. This is also endorsed by the Mozambican authorities.

Given the complexity of issues to be dealt with under involuntary resettlement a Resettlement Policy Framework (RPF) has been prepared and must be used together with this ESMF.

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12 TRAINING AND CAPACITY BUILDING REQUIREMENTS

Successful implementation of the Project will depend among others on the effective implementation of the environmental and social management measures outlined in the ESIAs/ESMPs, PMP and RAPs. Training and capacity building will be necessary for the key stakeholders to ensure that they have the appropriate knowledge and skills to implement the environmental and social management plans.

12.1 Institutional Capacity Assessment and Analysis

Descriptions made in Chapter 7 clearly show that there has been considerable progress in institutional, legal and regulatory processes related with environmental and social management in Mozambique. However, coordination and law enforcement remain a serious challenge.

The Ministry for the Coordination of Environmental Affairs (MICOA) is entrusted with the responsibility of “promoting sustainable development through the practical leadership and execution of the country’s environmental policy”. However, it is a Ministry that is relatively new compared to other traditional ministries (e.g. agriculture, public works, education, health, MPD and MMAS, etc.) and it has been facing real problems to advance its coordinating role and responsibilities.

The various institutions, development strategies, laws and regulations are still in need of harmonization to ensure that they achieve common goals within the sector. Human and material investments are required to translate the various provisions into concrete actions. This is further compounded by the fact that most of the country’s inhabitants are active in the informal sector, which makes it very difficult to regulate them.

Based on needs identification a specific institutional and human capacity-building program for environmental and social management will have to be developed as part of the Project. Beneficiary institutions might be the Ministry for the Coordination of Environmental Affairs (MICOA) at its various levels, mainly the provincial and district levels, relevant line ministries at provincial and district levels, e.g. agriculture, public works, energy, mineral resources, health, education, MMAS and MPD, etc., including local authorities (e.g. municipalities and others such as CSOs). A detailed capacity-building program will be developed during implementation, with a focus on strengthening the District, Municipal and Provincial structures responsible for environmental and social management.

The District Services of Planning and Infrastructure (SDPI), which have a unit that deals with environmental matters at the district level, should be given special attention to build their capacity to manage the ESIA/ESMP and RAP processes. So far, these processes are managed mainly at the provincial and central level. Only limited number of districts (e.g. Moatize) have made significant strides in getting actively and competently involved in ESIA/ESMP and RAP processes. In as far as possible lessons learned

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from Moatize experience should be replicated in Angonia, Tsangano, Macanga, Nacala Porto and Nacala-a-Velha as part of the Project planning and implementation.

To deal with the various and complex issues related with communication, coordination, capacity building and institutional strengthening there will be qualified Safeguard Specialists and a Communication Officers in the two provinces stationed at ZVDA and GAZEDA.

12.2 Proposed Training and Awareness Programs

The general objective of the training and awareness programs for implementation of the ESIAs/ESMPs, PMP and RAPs is to:

sensitize the various stakeholders on the linkages between environment and social impacts and Project subprojects, particularly rural feeder roads, agriculture development, agro-industry, water supply, energy, education, health, etc.;

demonstrate the role of the various key players in the implementation and monitoring of the safeguards instruments (ESMF-ESIA/ESMP, RPF/RAP, PMP, etc.);

sensitize representatives and leaders of community groups and associations (who will in turn convey the message to their respective communities) on the implementation and management of the mitigation measures; and on their roles in achieving environmental and social sustainability;

ensure that both provincial and district level personnel are able to provide leadership and guidance as well as supervise the implementation of their components in the ESIA/ESMP, RPF/RAP, PMP, etc.;

ensure that participants are able to analyze the potential environmental and social impacts, and competently prescribe mitigation options as well as supervise the implementation of management plans;

strengthen local NGOs and teams of extension workers to provide technical support to the farmers.

The stakeholders have different training needs for awareness raising, sensitization, and comprehensive training, namely:

awareness-raising for participants who need to appreciate the significance or relevance of environmental and social issues, that go even beyond just safeguards (i.e. gender mainstreaming, social accountability and/or grievance redress mechanism, etc.);

sensitization for participants who need to be familiar with the ESIA/ESMP, PMP and RAP and to monitor its implementation; and

Comprehensive training for participants who will need to understand the potential adverse environmental and social impacts and who will at times supervise implementation of mitigation measures and report to relevant authorities.

Practical ways of reaching all target groups will need to be devised for training and capacity needs assessments as well as for delivery of the

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training. The “Learning by Doing”24 approach in relative detriment of studies and other forms of advice and assistance will be given priority consideration. The training of trainers is also seen as a relevant approach as it will assist in the creation of basic conditions for sustainability and replication of the interventions. The outcomes of such a process will live beyond the life span of the Project.

12.3. Technical Assistance (TA)

In due course the need for short, medium and long term Technical Assistance will be assessed. The results will be used to devise the best approach to deploying TA to the project.

Particularly important in TA will be to ensure that the various external inputs from different providers of goods and services to the project are aligned and harmonized with the Project’s ultimate goals. Capacity building and transference of knowledge and skills for MPD, MMAS, MICOA and the overall environmental and social sector will be at the center of the activities to be carried out.

24 In which relevant personnel at the various levels are exposed to examples of good practices and/or where they learn by seeing and/or doing how things are approached and done.

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13 ESMF MONITORING REQUIREMENTS Monitoring will be fundamental to ensure that the objectives set forth in the ESMF and the ESIAs/ESMPs, PMP and RAPs are being achieved satisfactorily and where there are nonconformities to, timely, introduce changes. This will be a continuous process and will include compliance and outcome monitoring. The aim is to verify key concerns on compliance with the ESMF, implementation progress and extent of effective consultation and participation of local communities.

The Project Management Team, especially the two safeguard specialists, will have the overall responsibility for coordinating and monitoring the implementation of the ESMF. They will have to conduct sensitization programs to inform stakeholders about the framework, how it works and what will be expected of them. They will undertake continuous compliance monitoring and evaluation to ensure that:

All project activities are implemented according to the environmental and social management requirements of this ESMF, PMP and RPF and, where applicable, specific Environmental and Social Management Plans (ESMPs);

Problems arising during implementation are being addressed early enough to avoid any spill-over that could subsequently hinder the outcomes of the project (i.e. issues of Grievance Redress Mechanism); and

Environmental and social mitigation or enhancement measures, designed as per this ESMF or additional environmental and social mitigation measures identified during project implementation and/or ESIA/ESMP preparation, are reflected within specific ESMPs, CESMPs and monitoring plans.

The Project Management Team (PMT) will consult and coordinate with the appropriate government agencies on social and environmental monitoring. Quarterly progress reports will be prepared and circulated to all relevant entities covering aspects such as:

Implementation schedule; Extent of community involvement; Allocation of funds; Problems arising as well as solutions devised, during

implementation; and Efficiency of contractors in fulfilling their environmental, social,

health and safety management contractual obligations; Efficiency of Supervising Engineers in fulfilling their environmental,

social, health and safety monitoring contractual obligations.For major project activities, the Project will procure an external independent consultant/firm to (i) conduct the monitoring and evaluation of the sub-project activities, and (ii) verify the effectiveness of measures for mitigation of negative impacts and enhancement of positive impacts. The Independent consultant/Firm will develop a detailed monitoring and evaluation plan (including questionnaires and inventory forms) from terms of reference, based on the ESMPs and CESMPs submitted to and approved by the GOM and the WB/IDA.

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14 PROPOSED ESTIMATED IMPLEMENTATION BUDGET.

Below is the itemized budget for preparing and implementing the ESMF and respective ESIAs/ESMPs, , including monitoring, evaluation, auditing and capacity building.

Table 5: Estimated budget for ESMF implementation

Item Total Amount in US$ESMF ImplementationSub-project identification, preparation and monitoring assistance 50,000.00General technical assistance 50,000.00Monitoring and inspection 50,000.00Annual review and audits 50,000.00Training and Capacity BuildingAt central level 50,000.00Extension workers and other technical personnel at the grassroots level 50,000.00Producers’ associations and SMEs, NGO, CBO 50,000.00Preparation and implementation of ESIAs, ESMPs, RAPsPreparation and implementation of ESIAs, ESMPs 250,000.00

Total 600,000.00

The total cost of preparing and implementing ESMF , and the ESIAs/ESMPs under this document stands at US$ 600,000.00.

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References Carlos Nuno Castel-Branco (2008) "The Mega Projects in Mozambique: What Contribution to National Economy?" Civil Society Forum on Extractive Industries, Natural History Museum (Maputo), 27 and 28 November 2008CEDSIF, (date). Terms of Reference for support to the development of SGMCM, Maio 2011. “Plano de Acção para a Redução da Pobreza (PARP) 2011-2014 – Aprovado na 15ª Sessão Ordinária do Conselho de Ministros de 3 de Maio de 2011”, Maputo, Moçambique.CNCS, 2009. “HIV/SIDA em Moçambique”, Maputo, MoçambiqueFourth High Level Forum on Aid Effectiveness (HLF-4, 29 November-1 December 2011), Busan, KoreaGOM, 2005. Strategic Plan for the Environment Sector 2005 – 2015GOM, 2011. Poverty Reduction Action Plan (PARP) 2011-2014, approved May 3rd, 2011GOM, 2012. Government Five-Year Plan (PQG) 2010-2014 approved in April 2010.GOM, 2012. Simplified Matrix for Environment, 2012INE (2009). “Recenseamento Geral da População e Habitação – Resultados Definitivos”, Maputo, Moçambique.Memorandum of Understanding RDE – SCC, 2011-07-05MICOA, 2007. Environmental Strategy for Sustainable Development, EADS, December 2007MICOA, 2011. “Relatório do Estado do Ambiente em Moçambique”, Maputo, Moçambique.MICOA, 2011. Budget summaries for PES 2011, by programme, ESPS II executing agency.MICOA/INE , 2010. “Compêndio de Estatísticas do Ambiente”, Maputo, MoçambiqueMozambique Country Report, The Economist Intelligence Unit, May 2011MPD, 2010. “Report on the Millennium Development Goals”, Maputo, MozambiqueUNDP, 2011. “Human Development Report 2011, Sustainability and Equity: A Better Future for All”, 1 UN Plaza, New York, NY 10017, USA.United Nations Redd Programme (UN-REDD), 2012. “Readiness Preparation Proposal for Mozambique”, Maputo, Mozambique

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Annexes

A

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

B

Zambezi Valley

PROVÍNCIA ORDEM TOTAL DE PLANOS

DISTRITOS COM PLANOS ELABORADOS ANO DE ELABORAÇÃO DISTRITOS SEM

PLANOS

ZAMBÉZIA

40 1 Mocuba 2009 Namarroi41 2 Pebane 2009 Gurué42 3 Alto Molócué 2009 Lugela43 4 Namacurra 200944 5 Mangaja da Costa 200945 6 Chinde 200946 7 Morrumbala 201147 8 Mopeia 2011

Total de distritos sem Planos = 3

48 9 Gilé 201149 10 Nicoadala 201250 11 Ile 201251 12 Milange 201252 13 Inhassunge 2012

Total de Distritos Com Planos = 13Source: MICOA (2012)

C

PROVÍNCIA ORDEM TOTAL DE PLANOS

DISTRITOS COM PLANOS ELABORADOS ANO DE ELABORAÇÃO DISTRITOS SEM

PLANOS

TETE

53 1 Zumbo 200954 2 Mágoé 2009 Angónia55 3 Chiúta 2009 Tsangano56 4 Changara 2009 Cahora Bassa57 5 Macanga 2009

Total de Distritos sem Planos = 4

58 6 Chifunde 200959 7 Marávia 200960 8 Moatize 201061 9 Mutarara 2012

Total de Distritos Com Planos = 8Source: MICOA (2012)

D

PROVÍNCIA ORDEM TOTAL DE PLANOS

DISTRITOS COM PLANOS ELABORADOS ANO DE ELABORAÇÃO DISTRITOS SEM

PLANOS

SOFALA

62 1 Nhamatanda 200963 2 Muanza 200964 3 Machanga 200965 4 Cheringoma 200966 5 Chemba 200967 6 Buzi 200968 7 Maríngue 200969 8 Caia 201170 9 Marromeu 201171 10 Gorongoza 201272 11 Dondo 201273 12 Chibabava 2012

Total distritos com Planos = 12Source: MICOA (2012)

E

PROVÍNCIA ORDEM TOTAL DE PLANOS

DISTRITOS COM PLANOS ELABORADOS ANO DE ELABORAÇÃO DISTRITOS SEM

PLANOS

MANICA

74 1 Sussudenga 2009 Macossa75 2 Gondola 2009 Mossurize76 3 Barué 201177 4 Guro 2011

Total de Distritos sem Planos = 2

78 5 Machaze 201179 6 Manica 201180 7 Tambara 2012

Total de distritos com Planos =7Source: MICOA (2012)

F

Nacala Corridor (excluding Tete)PROVÍNCIA ORDEM TOTAL DE

PLANOSDISTRITOS COM PLANOS

ELABORADOS ANO DE ELABORAÇÃO DISTRITOS SEM PLANOS

NIASSA

17 1 Muembe 2010 Mecula18 2 Lago 2011 Cuamba19 3 Sanga 2011 Nipepe20 4 Mavago 2011 Metarica21 5 Majune 2011 Mecanhelas22 6 Marrupa 2012 Mandimba23 7 Maúa 2012 Ngaúma24 8 Lichinga 2012

Total de Distritos com Planos = 8Total de Distritos sem Planos = 7

Source: MICOA (2012)

G

PROVÍNCIA ORDEM TOTAL DE PLANOS

DISTRITOS COM PLANOS ELABORADOS ANO DE ELABORAÇÃO DISTRITOS SEM

PLANOS

NAMPULA

25 1 Mossuril 2009 Moma26 2 Ilha de Moçambique 2008 Mongicual27 3 Nacala - Porto 2009 Eráti28 4 Angoche 2008 Memba29 5 Nacala -a- Velha 2010 Nacarôa30 6 Mongovolas 201131 7 Murrupula 201132 8 Monapo 201033 9 Nampula Rapale 2011

Total Distritos Sem Planos = 5

34 10 Muecate 201135 11 Mecuburi 201136 12 Malema 201237 13 Ribaúe 201238 14 Meconta 201239 15 Lalaua 2012

Total de distritos com Planos = 15Source: MICOA (2012)

H

Annex 2: Environmental and Social Screening Form for subprojects

Nr of order :……………… Date of filling

This ESSF form is designed to assist in the environmental and social screening of Project sub-projects to be executed in the field on-site.Subproject Location :………………………………………………………Project Leaders:……………………………………………………

Part A: Brief description of the subproject………………………………………………………………………………………………

Part B: Identification of environmental and social impacts

Environmental and social concerns Yes

No Remarks

Sector resourcesWill the subproject require large volumes of construction materials from the local natural resources (sand, gravel, laterite, water, wood construction, etc.)?Does it require vast clearing or acquisition of land areas, will it use GMOs or grow tobacco and drugs?BiodiversityWill the subproject cause impacts on endemic, rare, vulnerable species (i.e. IUCN Red List species) and / or important economic, ecological, physical cultural resources and componentsAre there any areas of environmental or ecological sensitivity that could be adversely affected by the subproject? E.g., forests, wetlands (lakes, rivers, seasonal floodplains), etc.Protected areasDoes the subproject area (or its components) have impact on protected areas (national parks, national reserves, protected forests, a World Heritage Site, etc.)If the subproject is outside protected areas, but at a short distance from protected areas, could it adversely affect the ecology within the protected area? (e.g. interference with the flight of birds, migration of mammals)Geology and SoilsFrom the geological or soil point of view are there unstable areas (erosion, landslide, collapse)?Are there any areas at risk of soil salinization?Landscape/aestheticsWill the subproject have any adverse effect on the aesthetic value of the landscape?Historical, archaeological or cultural sitesHas the subproject the potential to change one or several historic, archaeological, cultural sites, or require excavations?

I

Environmental and social concerns Yes

No Remarks

Loss of assets and otherDoes the subproject trigger the temporary or permanent loss of natural or critical natural habitat, crops, agricultural land, grazing, fruit trees, houses and domestic infrastructure?PollutionIs the subproject likely to cause a high levels of noise?Has the subproject the potential to generate significant amounts of solid and liquid wastes? (i.e. waste oils, high BOD effluents, heavy metals, other toxic chemicals, pesticides, fertilizer pollution, etc.)If "yes" has the subproject client prepared a plan for waste collection and disposal or management?Is there Environmental and Social Management Capacity and Equipment?Is there any risk that subproject could affect the quality of surface water, groundwater, drinking water sourcesHas the subproject any potential of affecting the atmosphere and causing air pollution (dust, PM10, various gases such NOx, SO2, etc.)LifestyleDoes the subproject have any potential of causing alterations in the lifestyle of local people?Could the subproject lead to the accentuation of social inequalities?Does the subproject have the potential to lead to incompatible uses of resources or to social conflicts between different users or is there a risk that local communities could lose the access to their land or lose the use rights of their land?Health and SafetyDoes the subproject have the potential to lead to risks of accident for workers and communities?Does the subproject have the potential to cause risks to the health of workers and the communities? (i.e. HIV/Aids)Does the subproject have the potential to lead to an increase in the population of disease vectors? Malaria, Intestinal and Urinary Bilharzia and othersLocal IncomesDoes the subproject create temporary or permanent jobs?Does the subproject promote the increase of agricultural production and/or create other income generating activities?Gender ConcernsDoes the subproject promote the integration of women and other vulnerable groups and provide them access to resources such as irrigated

J

Environmental and social concerns Yes

No Remarks

agriculture, markets, etc.?Does the subproject take into account the concerns of women and does it encourage their involvement in decision-making?

Public Consultation and ParticipationHave public consultation and participation been sought?Yes____ No___If “Yes”, briefly describe the measures taken to this effect.

Part C: Mitigation For all "Yes" given answers briefly describe the measures taken to that effect.

Part D: Project classification and environmental and social work No environmental and social work needed …………………..

Freestanding ESMP or SECs) ………………….. ESIA with an Environmental and Social Management Plan (ESMP) Contractor ESMP

Project classified as category:

A B C

K

Annex 3: Preliminary Environmental Information Sheet

FICHA DE INFORMAÇÃO AMBIENTAL PRELIMINAR

1. Nome da actividade:

2. Tipo de actividade:

a) Turística Industrial Agro-pecuária Outro

Especifique

b) Novo X Reabilitação Expansão

3. Identificação do(s) proponente(s):

4. Endereço/contacto:

______________________________________________________________________________________________________________________________________

5. Localização da actividade:

5.1 Localização administrativa:

5.2 Meio de inserção:

Urbano Rural

6. Enquadramento no zoneamento:

Espaço habitacional Industrial Serviço Verde

7. Descrição da actividade:

7.1 Infra-estruturas da actividade, suas dimensões e capacidade instalada (juntar sempre que possível as peças desenhadas e escritas da actividade):

7.2 Actividades associadas:

7.3 Breve descrição da tecnologia de construção e de operação:

7.4 Actividades principais e complementares:

L

7.5 Tipo, origem e quantidade da mão-de-obra:

7.6 Tipo, origem e quantidades de matéria-prima :

7.7 Produtos químicos citados cientificamente a serem usados: (caso a lista seja longa deverá produzir-se em anexo)

7.8 Tipo, origem e quantidade de consumo de água e energia:

7.9 Origem e quantidade de combustíveis e lubrificantes a serem usados:

7.10 Outros recursos necessários:_________________________________________________________________________________________________________________________________________________________________________________________________________

8. Posse de terra (situação legal sobre a aquisição do espaço físico): _________________________________________________________________________________________________________________________________________________________________________________________________________

9. Alternativas de localização da actividade:

(Motivo da escolha do local de implantação da actividade e indicando pelo menos dois locais alternativos)_________________________________________________________________________________________________________________________________________________________________________________________________________

10. Breve informação sobre a situação ambiental de referência local e regional:

10.1 Características físicas do local de implantação da actividade:

Planície Planalto Vale Montanha

10.2 Ecossistemas predominantes:

Rio Lago Mar Terrestre

10.3 Zona de localização:

Zona Costeira Zona do interior Ilha

10.4 Tipo de vegetação predominante:

Floresta Savana Outros (especifique)___

M

A vegetação é dominada por gramíneas, pinheiros casuarinos, coqueiros e arbustos e árvores indígenas.

10.5 Uso do solo de acordo com o plano de estrutura ou outra política vigente:

Machamba Habitacional Industrial

Protecção Outros ( Especifique)_________________________

10.6 Infra-estruturas principais existentes ao redor da área da actividade:

11. Informação complementar através de mapas

Outra informação pertinente que julgar relevante.

Local, data (dia/mês/ano)

N

Annex 4: Checklist for environmental and social impacts

Peojwxct Activities Issues to be addressed

Yes No If yes,

Agricultural development, rehabilitation of rural feeder roads, construction of water mains and construction and operation of storage, packaging and agro-processing facilities

Will there any loss of vegetation during the construction and operation of the agricultural subprojects?

Are there adequate services and plans for liquid and solid waste disposal during construction and operation?

Will the waste and trash generated during the construction and operational phases of the subprojects be cleaned up and disposed off?

Will there be fire equipment and safety equipment on-site in case of an emergency or accident during construction and operation?

Is there any risk of pollution of groundwater, surface water or soil by the subproject activities?

Is there any risk of air pollution by subproject activities, e.g., agro-industry processes?

Are there any environmentally sensitive areas in the vicinity of the area of operations that may be negatively impacted?

Are there impacts on the health of local residents and the implementing and operating staff?

Are there any impacts of waterborne diseases on local communities, e.g., malaria and bilharzia?

Are there visual impacts caused by construction and infrastructure?

Are there any odors that may come from the disposal of waste from agricultural activities?

Are there human settlements or sites of cultural, religious or historical importance near the subproject site?

Will there be any conflicts/disturbances between local people and external people working for the project?

Will the project interfere with any

If yes, draw appropriate mitigation measures described in Chapter 9 and the Annex 7. Good Agricultural Practices

O

physical/cultural resources?

P

Annex 5: Environmental and Social Clauses

The environmental and social clauses presented below will be integrated into Contracts for the Design, Construction, Operation and Maintenance of PROJECT subprojects.

a. Prior arrangements for carrying out works

Compliance with laws and regulations:

The Contractor and its subcontractors must: know, respect and enforce laws and regulations in force in the country in regard to the environment, disposal of solid and liquid waste, air emission and effluent standards and allowed noise levels, hours of work, etc.; take all appropriate measures to minimize harm to the environment and people; take responsibility for any claims related to environmental non-compliance.

Permits and approvals before work

Any work carried out must be preceded by obtaining information with regard to permits (e.g., environmental permit) and administrative permissions. Before starting work, the Contractor shall obtain all permits necessary for carrying out the work under the contract: authorizations are issued by local communities, forest services (in the case of deforestation, pruning, etc.), mining services (in case of quarries and borrow sites), hydraulic services (in case of use of public water points), the Labor Inspection, network managers, etc. Before starting any works, the Contractor shall consult with the residents with whom he can make arrangements to facilitate the progress of the subproject implementation.

Meeting before starting works

Before starting work, the Contractor and the Project Manager, under the supervision of the Client, shall hold meetings with government officials, representatives of the population in the project area and relevant technical services to inform them about the consistency and duration of works, routes involved and locations likely to be affected. This meeting will enable the Client to collect people’s suggestions, raise awareness on environmental and social issues and their relationships with the workers.

Identification of concessionaire networks

Before starting works, the Contractor shall investigate a procedure for identifying concessionaire networks (water, electricity, telephone, sewer, etc.) on a plan that will be formalized by Minutes of Meetings signed by all parties (Contractor, works supervisor, concessionaires).

Release of public and private domain

The Contractor should be aware of the fact that the perimeter of a public utility related to the operation is the perimeter that may be affected by the works. Work can only begin in the affected areas by private companies when they are released as a result of an expropriation process.

Q

Environmental and social management program

The Contractor shall prepare and submit for approval by the Project Manager a detailed project environmental and social management program including: (i) a site plan showing the location of the site and the various areas of the site for project components and locations, (ii) a site plan for waste management indicating the types of waste, the type of collection considered, the storage, the method and location of disposal; (iii) the information and awareness program specifying targets, themes and selected consultation modality; (iv) a plan for accident management and health protection stating the risks of major accidents which endanger the health or safety of staff and / or public security measures and / or health protection to be applied in the context of an emergency plan. The Contractor shall also prepare and submit, for approval by the prime contractor, a plan to protect the environment of the site, which includes all security measures to protect the site and forward a site decommissioning plan at the end of works.

The environmental and social management program will also include: the organization of staff in charge of environmental, health and safety management with an indication of the officer in charge of the Project Environmental Health and Safety Department, description of the methods to reduce negative environmental, social, health and safety impacts, the water supply and sanitation management plan, the list of agreements made with the owners and current users of private sites, etc.

b. Construction Plant and Work Camp Rules

Location standards

The Contractor shall construct temporary construction facilities in order to cause the least disturbance possible to the environment, preferably in areas already cleared or disturbed when such sites exist, or on sites that will be reused at a later stage for other purposes. The Contractor shall strictly prohibit the establishment of a base camp within a protected area.

Display rules and staff awareness

The Contractor shall display a clearly visible internal regulation in the various camp facilities specifically prescribing: respect for local customs, protection against STI / HIV / AIDS, hygiene rules and safety and environmental measures. The Contractor shall educate its staff in regard to respect for customs and traditions of the people of the area where the works are being performed and the risks of STDs and HIV / AIDS.

Use of local labor

The Contractor shall engage (besides his technical staff) as much labor as possible from the area where the works are being performed. Failing to find qualified personnel on site, it is permitted to bring a workforce from outside the work area.

Child labor

R

Harmful Child Labor, which consists of the employment of children that is economically exploitative, or is likely to be hazardous to or interfere with, the child's education, or to be harmful to the child's health, or physical, mental, spiritual, moral or social development should not be allowed.

Respect for working hours

The Contractor shall ensure that work schedules comply with the laws and regulations in force. Any waiver is subject to the approval of the project manager. Wherever possible (except in exceptional cases provided by the prime contractor), the Contractor shall avoid performing work during the rest hours, Sundays and holidays.

Protection of site personnel

The Contractor shall make available to site personnel prescribed working clothes and in good condition and all accessories and safety protection to their activities (helmets, boots, belts, masks, gloves, goggles, etc.). The Contractor shall ensure scrupulous use of protection equipment on site. Permanent monitoring should be carried out for this purpose and, in case of violation, enforcement actions (warning, layoff, dismissal) must be applied to personnel.

Person(s) Responsible for Health, Safety and Environment

The Contractor shall appoint Health / Safety / Environment Officer(s), who will ensure that the hygiene, safety and environmental protection rules are strictly followed by all and at all levels of performance, both for workers and the population as well as others in contact with the site. He will locate health centers closest to the site to allow its staff to have access to first aid in case of accident. The Contractor shall prohibit access to the site by the public, protect it with tags and signs, indicate different access and take all order and security measures to avoid accidents.

Appointment of staff on duty

The Contractor shall provide care, supervision and safety maintenance of the site including out of hours on-site presence. Throughout the construction period, the Contractor shall have personnel on call outside working hours, every day without exception (Saturday, Sunday and holidays), day and night, to take action with regard to any incident and/or accident that may occur in connection with the works.

Measures against traffic barriers

The Contractor shall avoid blocking public access. He must constantly maintain and guarantee the movement and access of residents during construction. The Contractor shall ensure that no excavation or trench is left open at night without proper signage approved by the Project Manager. The Contractor shall ensure that temporary deviations allow for passage without danger.

S

c. Decommissioning of construction sites

General Rules

Upon releasing a site, the Contractor leaves the premises to their own immediate use. He cannot be released from his obligations and responsibilities without ensuring that the site is in good condition. The Contractor shall carry out all the necessary works for rehabilitation of the site and restore it to its initial or almost initial state. All equipment, materials, polluted soil, etc. will be removed and cannot be abandoned on site or surrounding area.

Once the work is completed, the Contractor shall: (i) remove temporary buildings, equipment, solid and liquid waste, leftover materials, fences, etc. (ii) rectify faults in drainage and treat all excavated areas; (iii) reforest areas initially deforested with appropriate species in relation to local forest services; (iv) protect the remaining dangerous works (well, open ditches, slopes, projections, rehabilitate quarries, etc.); (vi) install functional pavements, sidewalks, gutters, ramps and other structures essential for public service. After the removal of all equipment, a report on the rehabilitation of the site must be prepared and attached to the minutes of the reception of the works.

Protection of unstable areas

During the execution of works in unstable environments, the Contractor shall take the following precautions not to accentuate the instability of the soil: (i) avoid heavy traffic and overload in the zone of instability; (ii) retain as much as possible the vegetation or restore it using native species where there are erosion risks.

Control the execution of environmental and social clauses

The Project Manager, whose team should include an environmental expert who is part of the mission control team, shall verify compliance and the effectiveness of the implementation of the environmental and social clauses by the Contractor.

Notification

The Project Manager shall notify the Contractor of any event of default or non-performance of environmental and social measures. The Contractor shall rectify any breach of the regulations duly notified to him by the Project Manager. Costs of restarts or additional works arising from non-compliance shall be borne by the Contractor.

Sanction

T

Pursuant to contractual non-compliance with environmental and social clauses, duly noted by the Project Manager, may be grounds for termination of the contract. The Contractor whose contract has been terminated due to non-implementation of environmental and social clauses may be subject to sanctions up to suspension of the right to bid for a period determined by the Client, with a reduction on the price and blocking the pay back of the guarantee.

Reception of the works

Failure to follow these terms exposes the Contractor to provisional or final refusal of acceptance of the works, by the reception Commission. The implementation of each environmental and social measure may be subject to partial acceptance involving relevant departments.

Obligations under the guarantee

The obligations of the Contractor run until the final reception of the works that will happen only after the complete execution of the works to improve the environment as stated in the contract.

d. Environmental and Social Clauses

Works signage

Prior to the opening of construction sites and whenever necessary the Contractor shall place, pre-signage and signage within an appropriate distance in line with the laws and regulations in force.

Measures for the movement of construction equipment

During the works, the Contractor shall limit vehicle speeds on site by installing signs and flag bearers. In residential areas, the Contractor shall establish the schedule and route for heavy vehicles, which must circulate outside the sites to minimize nuisances (noise, dust, risk of accidents and traffic congestion) and carry approval of the project manager.

Only strictly necessary materials will be tolerated on the site. Outside access, designated crossing places and work areas, it is prohibited to operate construction equipment.

The Contractor shall ensure that the speed limit for all vehicles on public roads, will be a maximum of 60 km / h on rural roads and 40 km / h in urban areas and through villages. Drivers exceeding these limits shall be subject to disciplinary action up to and including dismissal. The installation of speed humps or water spraying in settlements will be recommended in order to reduce the risk of accidents and reduce the nuisance of dust.

Vehicles of the Contractor shall, at all times, comply with the requirements of the Highway Code in force, particularly with regard to the weight of the laden vehicle.

U

The Contractor shall, during the dry season and depending on water availability, regularly spray water on dusty roads/tracks used by its transport equipment to avoid dust, especially in populated areas.

Protection of crossing areas and agricultural activities

The work schedule should be established in such a way as to minimize disruption of agricultural activities. The main periods of activity (ploughing, sowing, harvesting, drying, etc.) must be known in particular to adapt the construction schedule to these agricultural activities. The Contractor shall identify where crossings for animals, livestock and people are needed. Again, the involvement of the population is paramount.

Protection of wetlands, fauna and flora

It is forbidden for the Contractor to establish temporary installations (storage areas and parking, or paths to circumvent works, etc.) in wetlands, including the filling of existing temporary pools. In the case of vegetated areas, the Contractor must adapt to the local vegetation and be careful not to introduce new species without consulting the forestry services. For all deforested areas lying outside the ROW and required by the Contractor for the purposes of its works, the top soil must be kept separate and restored afterwards.

Protection of sacred sites and archaeological sites

The Contractor shall take all necessary measures to respect the cultural and cultural sites (cemeteries, sacred sites, etc.) existing in the vicinity of the works and not interfere them with. For this purpose he must first identify their type and location before starting the works.

If, during construction, remains of places of interest for worship, historic or archaeological value are discovered, the Contractor shall follow the following procedure: (i) stop work in the area, (ii) immediately notify the Project Manager who must take steps to protect the site to avoid destruction by defining a protection perimeter on the site within which no activity shall be carried on, and (iii) to refrain from removing and moving objects and relics. The work must be suspended within the scope of protection until the national body responsible for historic and archaeological sites has given permission to continue.

Measures for logging and deforestation

In the case of deforestation, felled trees must be cut and stored in locations approved by the Project Manager. Local residents should be aware of the possibility that they can make use of this timber at their convenience. Felled trees should not be left on site or burned or fled under the earth materials. Felled trees should be compensated in natura or in monetary value, depending on the existing laws.

Liquid Waste Management

V

The Contractor shall prevent spills and wastewater discharge, oil and all kinds of pollutants in surface water or groundwater or on soils. The Project Manager will provide treatment methods, disposal procedures, disposal sites and drainage locations to the Contractor.

Solid waste management

The Contractor shall deposit the garbage in bins to be emptied and sealed periodically. In case of evacuation of the site by trucks, bins should be sealed to prevent the waste spillage. For hygiene reasons, and in order to not attract vectors daily collection is recommended, especially during hot periods. The Contractor shall dispose of or recycle the wastes in an environmentally sound manner. For this purpose the Contractor should store waste in labeled containers. The Contractor shall deliver the waste, if possible, to existing disposal sites.

Protection against noise pollution

The Contractor shall limit construction noise in order not to disturb residents, either by excessively long duration, or by their extension outside of normal working hours. Thresholds are not to exceed 55 decibels (dB) during the day and 45 decibels at night.

Prevention against STD / HIV / AIDS and related diseases

The Contractor shall inform and educate staff on the risks of STD / HIV / AIDS. He must make sufficient and good quality condoms available to staff free of charge to be used against STDs and HIV / AIDS infections. Local communities should also be informed about the risks of STDs and HIV / Aids.

The Contractor shall inform and educate employees on safety and health at work. He must maintain the safety and health of workers and local populations and take appropriate measures for this purpose. The Contractor shall provide the following preventive measures against the health and safety risks: (i) enforce the wearing of masks, uniforms and other appropriate footwear and equipment; and (ii) systematically install a medical clinic at the construction site and provide free medications necessary for emergency care on site for the staff.

Site journal

The Contractor shall maintain a log yard, which will record complaints, violations, accidents or incidents that have a significant impact on the environment or impacts on the local communities. The site log is unique to the site and notes must be written in ink. The Contractor shall inform the general public and local residents in particular, about the existence of this journal, with an indication of where it can be accessed.

Equipment maintenance and equipment projects

W

The Contractor shall comply with the maintenance standards for construction equipment and vehicles and conduct refueling and lubricant in a place designated for this purpose. Refueling should take place on a concrete slab. Fuel tanks should be placed within a concrete bund of 110% volume the volume of the fuel tank or tanks. Oil/water separators should be installed where there is a risk of pollution with hydrocarbons, e.g., at vehicle maintenance sites. On the site, provision of absorbent materials and insulators (pillows, sheets, tubes and peat fiber, etc.) as well as sealed containers clearly identified for receiving petroleum residues and waste, must be present. The Contractor shall perform, under constant surveillance, handling of fuel, oil or other contaminants, including the transfer to avoid spillage. The Contractor shall collect, process and recycle all waste oil, and waste in operations and maintenance or repair of machinery. It is forbidden to discharge any hydrocarbons or other dangerous chemicals into the environment or on the construction site.

The Contractor shall drain the waste oils in sealed drums and retain oils to return it to the supplier (recycling). Used spare parts must be sent to the landfill or disposed off in another environmentally acceptable manner.

Washing areas and areas for maintenance of equipment and vehicles must be from concrete and equipped with a collection system for oils and fats, with a slope oriented to prevent the flow of pollutants to areas with bare soil. Concrete mixers and equipment for the transportation and installation of the concrete should be washed in the areas provided for this purpose.

Dust control

The Contractor shall select the location of crushers and similar equipment based on noise and dust they produce. Goggles and dust masks are mandatory.

X

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

Mozambique Integrated Growth Poles Project(PROJECT -- P127303)

ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF)

Summary of the Public Participation/Consultation Process

Y

1. Introduction

In addition to general discussions with a multitude of project interested people, during the preparation of the Project’s ESMF, PMP and RPF concerted efforts were made to get a number of well-identified stakeholders to provide elaborated feedback on a series of issues related to Project formulation, implementation and management, including environmental and social issues. Identified stakeholders cover individuals from central level institutions (e.g. GAZEDA, CFM, ZVDA, MICOA) to the provinces (DPCA and DPA) and districts (mainly district administrators and district directors of services).

The process was divided into two main phases. The first phase took place between 23 and 26 October 2012 during reconnaissance and preliminary assessment of the field conditions in order to inform stakeholders about the general project concept and get their preliminary views on a number of issues. This phase continued until the formulation of the first draft ESMF in November/December 2012. The second took place between 17 and 22 January 2013 and was aimed at presenting to and getting feedback from main stakeholders on project’s structure and contents and the impacts that it is likely to be associated with as well as ways of dealing with its different aspects.

Annex 8 of the ESMF document presents the list of people that were consulted as part of this process. The lines that follow make a summary of the main issues raised by the consulted people during the interviews and discussions.

Z

First Phase

Issues Categories of Stakeholders

Main Opinions Remarks

The Project as a contribution to the diversification of the economy in the Zambezi Valley and Nacala Corridor and support to the attainment of PRSP

District authorities Besides mining and transport, both the Zambezi Valley and Nacala Corridor are very rich in diversity of natural resources including water and land to sustain other economic activities including agriculture, tourism, industry, etc. and benefit a larger population basis. They should not become coal production and coal transport corridors only. In this regard, the project is welcome, it should be closely linked to existing district, and provincial strategic development plans. There is no need to start from scratch. The provinces and districts have already identified a number of projects which should be considered to be part of the Project

Provincial authorities Same as the district authorities

Nampula province highlighted the fact that Nacala Corridor is an area with a strong potential to diversify the economy by resuscitating important economic areas such as agriculture, forests, tourism, mining, etc. The province has formulated its own Provincial Strategic Plan for the period 2010-2020. The strategic document identifies the province’s potential and priority areas for investment

Nampula province provided its 2010-2020 Provincial Strategic Plan

Central level institutions including ZVDA and GAZEDA, CFM, FIPAG, etc.

The Project concept is indisputably relevant at this stage of the country’s development and in light of the development trends of these two

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Issues Categories of Stakeholders

Main Opinions Remarks

clusters, i.e. Zambezi Valley and Nacala Corridor. However, in order to fully materialize the concept there is a need to mobilize much more resources. The initial amount being considered (around 100 mil US$) will not be enough. The inconveniences stemming from this limitation of resources can be offset by focusing on a compact number of areas instead of trying to cover the two regions entirely.

There is no doubt that the country needs more corridors (roads and railways) in order to take advantage of its vast and rich natural resources. The big investors behind coal and other resources only have eyes on access to the Indian Ocean, i.e. in the old East-West direction for the circulation of goods and people in detriment of other internal directions. Although not confirmed yet and at the pre-feasibility stage in most cases there are several railway lines being considered to link Tete with Mozambican ports, which will exacerbate this phenomenon. Initiatives like these are welcome in order to bring some balance and take advantage of the markets to be created by the economic boom ignited by mining in Tete.

Other issues to be taken into consideration in project design,

District authorities The Project should support the districts and municipalities in their efforts to prepare land use plans. The siting of the subprojects should be done in line with sound land use planning at

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Issues Categories of Stakeholders

Main Opinions Remarks

implementation and the local levelProvincial authorities NACentral level institutions including ZVDA and GAZEDA, CFM, FIPAG, etc.

The project may be associated with new challenges, as it has considerable elements of regional planning/implementation. This approach is not yet a common practice in the country. Institutions are used to plan and act following administrative boundaries defined by provinces, districts, etc. Inter-provincial and inter-district initiatives are not yet a norm. There might be the need to clearly define who does what and where. Otherwise, there could be confusion and conflicts over implementation, management, operation and maintenance of infrastructures spread over different jurisdictions.

PROJECT’s role in district/municipal land use plans should be highlighted. In as far as possible the siting of T subprojects should be informed by sound land use planning

MICOA (DNAPOT) provided the current status quo on the preparation of District Land Use Plans.

Second Phase

Issues Categories of Stakeholders

Main Opinions Remarks

On focusing on two limited growth poles of Nacala and Angonia

District authorities As a matter of fact Angonia, Tsangano and Macanga are the most endowed districts in Tete and the Zambezi Valley in general. They can form an excellent platform in the process of trying to link mega-projects with local

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Issues Categories of Stakeholders

Main Opinions Remarks

initiatives.Provincial authorities Linking the consumption market that is growing

in Tete and Moatize with highly productive areas of Tete such as Angonia, Tsangano and Macanga has been in the minds of a series of economic agents. If well managed the Project has the potential to make positive demonstrations.

The provincial government has been working on these linkages and it is now evident that there is a clear need to increase production and productivity, improve quality, introduce processing and packaging, transport, marketing and general exposure to markets

Central level institutions including ZVDA and GAZEDA, CFM, FIPAG, etc.

The approach of investing the available resources only in five districts is an important step forward in terms of doing things that will be tangible. It is important that whatever is going to be done be visible and have visible impacts in order to provoke the necessary level of buy-in and have more entities interested in this concept. This is how more resources can be made available to spread the concept to other areas. Spreading few resources over a large area would be counterproductive.

From now on the project should move carefully and ensure that lessons are acquired and disseminated accordingly.

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Issues Categories of Stakeholders

Main Opinions Remarks

Other considerations and practical issues

District authorities The three districts of Angonia, Tsangano and Macanga have considerable agricultural irrigation experience, mainly by gravity, although in some cases they adopt practices that are damaging to the environment. It is will be important to invest on demonstration, training and capacity building in order to eliminate the negative practices over time.

The three districts have been making an inventory of the dams requiring rehabilitation for agricultural irrigation (mainly Angonia and Tsangano). They have also been identifying and making inventories of areas with potential to develop irrigation schemes. PROJECT should assist in fine-tuning this work and use the existing base to get started.

While Angonia and Tsangano have been under intensive exploitation, Macanga is relatively pristine. Not much has been going on in this district and activities will have to start from scratch in many area. This can be seen as an opportunity on one hand but also as a challenge on the other.

Macanga provided a list of three (3) irrigation schemes in need of rehabilitation and six (6) new points with potential to develop such schemes. These are accompanied by a preliminary budget estimate.

Angonia made reference to the existence of six (6) small irrigation dams units territory, of which only three (3) are operational. There was also a power

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Issues Categories of Stakeholders

Main Opinions Remarks

generating dam which is now out of operation.

Provincial authorities The average size of farm plots in the hands of small commercial producers in Angonia, Tsangano and Macanga is 15 ha. Under current circumstances it will be difficult to find bigger plots.

Through Moatize, Tete province has developed considerable experience of involving the districts (through the SDPI) in the ESIA/ESMP process. Coupled with targeted capacity-building the existing experience could be replicated in the three districts in Angonia Growth Pole.

The Project should make funds available to bring SDPIs personnel to the provincial capitals to be part of the ESIA/ESMP subproject review teams.

Under the procedures in force the review of projects (i.e. subprojects) is done at the provincial level by inter-ministerial working groups. SDPI should be part of this process as the subprojects go through the various stages of the ESIA/ESMP review processes.

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Issues Categories of Stakeholders

Main Opinions Remarks

Central level institutions including ZVDA and GAZEDA, CFM, FIPAG, etc.

The project is focusing excessively on Nacala Porto. It should consider doing something substantial in Nacala-a-Velha. There is a need to consider, for example, that the water system that is going to be supported has most of its components in Nacala-a-Velha territory. It is starting to look bad that Nacala Porto is getting all the support and benefits25 while Nacala-aVelha watches. This was started by the MCC/MCA project and if nothing is done will be continued by the Project.

The suggestion of having GAZEDA managing most of the rehabilitation of the 9 km road linking the future airport to the city of Nacala Porto may need to be reexamined. GAZEDA may not have the capacity and resources to do this adequately. ANE should be given an important role irrespectively of where the funds are going to be allocated.

Construction camps for works (roads, water supply, irrigation, etc.) should be provided with adequate toilet and ablution facilities. There have been negative experiences with other projects in this regard which the Project should by all means avoid

25 The water system is already under rehabilitation under MCC/MCA interventions, covering a series of components such as sources (Nacala Dam), water treatment plant, what transmission, etc.

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Annex 7: Good Agricultural Practices - Hygiene and Safety

Environmentally and Socially Friendly Agricultural Farming Systems Technical steps

Environmental and social measures

Clearing (felling of trees and shrubs)

• Reforestation of the waste land areas as a compensation• Development of low-lying flood plains for crop production, but leaving

high biodiversity wetland areas untouched

Fertilization • Development of improved farming system by applying improved technology

• Training on the safe selection, use, storage and disposal of agricultural inputs

• Training on compost making techniques• Train communities on how to improve their nutrition• Reduction of agricultural production losses and wastage• Reuse of agricultural by-products• Integration of short-cycle crops, i.e. 3 months, short stem rice

Treatment plant

• Promotion of integrated pest management• Training on safe pesticide selection, use, storage and disposal• Application of knowledge to get healthy crops, avoid or manage diseases• Adoption of best practices for monitoring insects and knowledge of the

life cycle of pests• Use of natural predators and ecological characteristics• Practice of Biological Control• Adoption of short cycle varieties selected for durable resistance to pests

Cropping systems

• Development of agricultural systems and irrigated lowland systems for year-round production

• Regular monitoring of the quality of water for irrigation to avoid contamination of food crops

• Recycling of crop residues and animal waste• Use of animal traction and shelterbelts• Promotion of home gardens

Measures of good agricultural practices integrating environmental and social sustainability aspects

Improving seed quality (seed production techniques)• Enhance the features of improved seeds taking the environmental and dimensions

into account, i.e. good ground cover to reduce erosion, short growing season so that more crops per year are feasible

• Organize the production and dissemination of improved seeds• Disseminate intensification techniques to improve the competitiveness of produced

crops• Improve harvesting and post-harvest techniques in order to reduce losses

Improvement of production systems and natural resource base:• Control erosion with legumes• Improved fertility including alley cropping with legumes• Use of cover crops• Reduce the decline of soil fertility through a better agriculture - livestock integration• Monitoring of Soil Fertility• Program for Research on Integrated Management of soil nutrients• Research Programs on more Sustainable Agricultural Systems leading to an

Enhanced and Sustainable Production System• Dissemination of technical erosion control

Sustainable agricultural crop production• Controlling erosion and rapid depletion of soil organic reserves, the restoration of

soil fertility and sustainable land management

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• Develop research on technologies that optimize the use of new sources of accessible and sustainable organic fertilizers

• Minimize the effects of mechanized practices (choice of agricultural machinery and equipment suited to the agro-ecological zones for cultivation, etc.).

Improving food quality• Ensure quality of food (hygienic, packaging, transportation, storage and processing• Prioritize the establishment of a system of risk analysis and critical control point

(HACCP hazard analysis of critical control point)

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Annex 8: List and Contacts of People Consulted

Nr.

Name Institution Position

1 Juma Taratibo District Administration/Ribaue

Administrator

2 Armindo Gove District Administration/Rapale

Administrator

3 Hilario Anapakala District Administration/Mecuburi

Administrator

4 Constantino antonio Ribaue Municipality Mayor5 Fernando Manuel SDAE Mutarara Director6 Rogerio Ajulai SDPI Mutarara Director7 Elizabeth Lundo District

Administration/MorrumbalaSecretary Permanent

8 Felicidade Muiocha Provincial Government/Nampula

Governor's Office Nampula/ UCODIN

9 Roberto Mito Albino Agencia do Zambeze Director10 Odete Simeão CFM Project Manager11 Paulo Covele CFM GIS Technician12 Moniz Candido SDPI Morrumbala Administrator13 Isabel Senda MICOA/DNAPOT Director14 Nico Branquinho

GuerraSDEJT/Morrumbala Planning Technician

15 Tome Manuel SDMAS/Morrumbala Director16 Branquinho Ferro

NhombeGAZEDA Delegate in Nacala

17 Fidelis Ussene FIPAG Nacala Porto Financial Manager/Acting Delegate in Nacala

18 Adriando bata FIPAG Nacala Porto Water Supply Technical Officer19 Florêncio Alves Provincial Directorate of

Agriculture in TeteAgricultural Hydraulics Officer

20 Leonardo Protássio Provincial Directorate of Agriculture in Tete

Agrarian Technician/Agricultural Services Department in Tete

21 Gerson Pedro Daúde District Services of Economic Activities Angonia

Agronomist Director of SDAE

22 Antonio Dique District Services of Economic Activities Macanga

Agronomist Director of SDAE

23 Jernonimo C. Alane District Services of Economic Activities Tsangano

Agronomist Director of SDAE

24 Hermenegildo Pacale Provincial Directorate for the Coordinationn of Environmental Affairs

Head of Environmental Management Department/Acting DPCA Director

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

MINISTÉRIO DA PLANIFICACAO E DA DISENVOLVIMENTODIRECÇÃO NACIONAL DE SERVIÇOS DE PLANEAMENTO

Mozambique Integrated Growth Poles Project

(P127303)

Terms of Reference for Consulting Services

Assignment title Preparation of Safeguards instruments for the Project: Environmental and Social Management Framework (ESMF including PMP) and Resettlement Policy Framework Contract

duration(90 days)

50 days for ESMF & PMP and overall lead40 days for RPF

Primary assignment location

Provinces of Tete and Nampula, and along the Growth Corridor (Tete to Nampula/Nacala )

Maputo, October, 2012

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Final-

A. Context and Objectives of the Assignment

The proposed Integrated Growth Poles Project (Project) is a US$100 million investment lending operation financed by the World Bank under the World Bank Country Partnership Strategy (CPS, 2012-2015). It will support the government’s strategy for inclusive and broad-based growth. The Project is expected to contribute towards supporting two of the three main pillars of the Governments Plano de Acção de Redução da Pobreza (PARP, 2011-14) (i) increasing agricultural production/productivity; (ii) employment through targeted interventions to strengthen the dynamism of the private sector to drive economic growth and accelerate job creation. The development objective of the Project is to improve the performance of enterprises and smallholder farms in the provinces of Tete and Nampula. The project preparation is under the overall responsibility of MPD.

World Bank safeguard policies guidelines require that MPD effectively assesses and mitigates the potential environmental and social impacts of the proposed project activities. At concept note stage, it was agreed that the Project’s environment and social category/rating would be A, later confirmed by MICOA. Furthermore, the project has triggered the following six (06) safeguards policies, namely OP/BP4.01 (Environmental Assessment), OP4.09 (Pest Management), OP/BP4.12 (Involuntary Resettlement), OP/BP4.04 (Natural Habitats), OP/BP 4.11 (Physical Cultural Resources) and OP/BP 7.50 (Projects in International Waterways). As a result of the above, MPD is required to prepare two major standalone safeguards instruments: an Environmental and Social Management Framework (ESMF) including a Pest Management Plan (PMP) and a Resettlement Policy Framework (RPF) in addition to a Strategic Environmental and Social Assessment (SESA) and a Comprehensive Social Impacts Assessment (CSIA).

The World Bank will support the Government of Mozambique in the preparation of the two major safeguard instruments. The primary objective of this assignment is to prepare, under two separate documents, an Environmental and Social Management Framework (ESMF) that includes a Pest Management Plan (PMP) and a Resettlement Policy Framework (RPF). The ESMF-PMP will be prepared with the aim to effectively assess and mitigate the potential environmental and social impacts of future sub-project activities under the Project, including issues related to natural habitats (OP/BP 4.04) and physical cultural resources (OP/BP 4.11). The RPF will be prepared with the aim to present the basic principles and procedures to be followed when a sub-project activity is identified as having potential impacts on land rights, assets or access to assets and which will entail ceding of land and/or potential assets by affected persons or entities in return for replacements and/or other forms of restoration.

Preparing these two required standalone safeguard instruments allows both the Government and the World Bank to agree on principles and processes, so that these need not be discussed for every sub-project. It

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also allows project stakeholders and beneficiaries to undertake specific sub-projects without having to re-negotiate fundamental agreements on a case-by-case basis.

B. Scope of the Assignment

Based on the objective of the assignment described above, the Consultants will be required to work in Maputo as well as to travel extensively to the project implementation area, namely Tete and Nampula. The Consultants will liaise with the overall Project preparation team (Maputo, Tete and Nampula), technical staff from MPD, MICOA, MINAGRI/DNSA, MMAS, MIREM and other relevant strategic stakeholders at both the central and provincial levels. The Consultants will also liaise with the relevant World Bank staff and staff from other donors engaged in environment and social activities in the Project area known as the Tete-Nacala Growth Corridor via Ilha de Mozambique. In fact, new interventions to be developed under the Growth Poles Project include assessment of potential tourism activities are currently being conducted in Ilha de Mocambique in Nampula. Hence, the proposed intervention for the Macuti side would promote the establishment of socially responsible and environmentally sound community based tourism activities for sustainable economic development of marginalized communities in Ilha de Mozambique. Moreover, the project will further be looking at the possibility of supporting the sustainable development of Tourism sector in the mainland of Ilha de Mozambique through financing access roads to Lumbo and Sancul (as foreseen on the Master Plan prepared under the Arco Norte project). With a special emphasis on field work, the Consultants will interact with

local actors such as NGO, SDAE extension workers and technical staff, potential beneficiary groups, and others. The desk review will include among other: environmental and social policies, strategies and approaches prevailing in the country; environmental and social analyses recently carried out under other relevant projects co-financed or not by the World Bank; the sub-project screening, approval, implementation and monitoring process (if available); review of on-going Sustainable Development (SDN) projects co-financed by the World Bank; provisions in the national laws for public consultations and participation requirements on social and environmental aspects and potential risks.

The ESMF (including a PMP) and RPF documents are each expected to include information on the following:o Executive Summary : A non-technical executive summary in both

Portuguese and Englisho Project Description : Provide a brief description of the project, with

emphasis on components with activities which will trigger environmental and social impacts

o Impacts : Identify, assess and – to the extent possible – quantify the potential environmental and social impacts and risks in the intervention zone of the subprojects

o Public/Stakeholders Consultation and Participation : Bearing in mind that this is a social and environmental category A project, propose steps and timeline to ensure that World Bank requirements on public consultation and participation are being met in full. Present the

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outcomes of a participatory and inclusive public consultation conducted by the Consultants with various categories of beneficiary stakeholders in the selected provinces. Outline the community’s perception of/and reaction to the project and suggest ways of retrofitting their main views and concerns in the project design, implementation and monitoring and evaluation. Include minutes of all consultation meetings for each document, highlighting i.e. gender and vulnerable groups distribution), and describing how communities have been identified.

o Public Consultation and Participation Plan (PCPP) : Develop a participatory and inclusive public consultation plan that could be easily followed up at the local level for the environmental and social screening process for the subprojects, as well as during the planning stages of the sub-project activities. As a category A project, at least two participatory public consultations with various stakeholders that include women, youth and most vulnerable groups of the project targeted communities in each province would have to be undertaken during the preparation of these safeguards instruments; one during the first phase of the preparation (between week 2 and 5) and the second one prior to the approval and public disclosure of the final reports.

o Legal Framework : Review of the national laws (incl. traditional and customary practices) governing the environment and natural resources (for ESMF) and governing the appropriation of land (or other assets) (for RPF). Identify potential discrepancies between national laws (such as the Decree No. 45/2004 of September 29, 2004, and Decree No. 31/2012 of August 8, 2012) and World Bank policies (mainly OP/BP4.01, OP 4.09, OP/BP 4.04, OP/BP 4.11 and OP/BP4.12) and establish mechanisms for a converging implementation.

o Implementing Agency : Identify/propose individuals/organization/agency responsible for jointly implementing the ESMF and the RPF. Assess the government’s and implementing agency’s technical and administrative capacities to manage the project’s potential environmental and social issues, and propose – as appropriate – viable mitigation measures to reinforce their technical and practical capacities in this regard, taking into consideration the relevant environmental and social policies, legal, regulatory and administrative frameworks in place.

o Safeguards Policies : Review the World Bank environment and social safeguards policies including those not yet triggered by the project and make recommendations regarding their applicability to the Project. Recommendations pertaining to the treatment of applicable safeguards policies in the context of the sub-projects should also be formulated.

o Public Disclosures : Bearing in mind that this is a social and environmental category A project, propose steps and timeline to ensure that public disclosures of key findings are adequately implemented, and in synch with the overall project preparation calendar.

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In addition to the above, the ESMF-PMP should specifically cover the following:

o Develop an environmental and social screening form (ESSF) to assist in determining potential impacts of the sub-projects proposed for the Project funding.

o Establish a process for assigning environmental and social categories to the sub-projects.

o Develop an environmental and social checklist combined with relevant mitigation measures to be applied to the various sub-projects that do not require a separate environmental and social impacts assessment (ESIA).

o Establish a process for environmental and social impacts analysis (ESIA) for sub-projects requiring a separate ESIA (i.e. preparation of terms of reference, selection of consultants to carry out site specific ESIAs, public consultations and participation).

o Establish a Land use screening mechanism for site specific RAPs to determine whether or not a full/abbreviated Resettlement Action Plan (RAP) will need to be prepared based on guidance and standards set forth in the RPF.

o Propose institutional arrangements for the review and clearance of screening results and site specific ESIAs and/or RAPs reports, as well as for the implementation of mitigation measures, and the related participatory monitoring and evaluation.

o In the context of subprojects, assess the potential environmental and social impacts of pesticides usages during the agriculture campaign, and – wherever appropriate- of solid wastes during small dams and canals construction or rehabilitation activities for irrigated agro-business operations; make appropriate, implementable and manageable recommendations on how to sustainably mitigate them in a participatory manner.

o Where appropriate, propose measures to deal with liquid (used oil and chemical pesticides) and solid waste during operation and/or maintenance of subprojects activities, particularly with regard to agribusiness related irrigation water supply, rural sanitation and health care facilities (where adequate). General cumulative environmental and social issues, directly or indirectly related to other sectors (water and sanitation, energy, transport, etc.), are expected to be further dealt with in the proposed Strategic Environment and Social Assessment (SESA) as well as the Comprehensive Social Impacts Assessment (CSIA) studies to be launched around the same time as the ESMF and RPF.

The ESMF should, in addition to the PMP, also include a comprehensive Environmental and Social Management Plan (ESMP) for the Project. This plan should include – as appropriate – institutional arrangements, time horizons and cost estimates for the implementation of mitigation measures and the monitoring of their implementation, ESIA training provisions, and participatory and inclusive public consultations. The ESMP-PMP as well as the RAP, SESA and CSIA will later be merged with the Project Operation’s Manual.

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Building upon the ESMF, the RPF should specifically cover the following:

o Screening and Preparing the Resettlement Action Plans (RAPs): Describe the process for determining if a site specific RAP is needed as well as the process for preparing and approving the various site specific RAPs. Describe the process by which individual RAPs for the proposed subprojects activities will be submitted to project authorities, reviewed, and approved. Describe how entitlements to compensation will be delivered. Clearly state who will be responsible for ensuring the resettlement process is carried out as required by World Bank policy guidelines;

o RAP Implementation : Describe implementation process and mechanisms

o Impact Magnitude : Estimate the magnitude of tangible impacts, population impacted, estimated period for temporary restriction to access to certain assets or income generating areas, estimated budget for replacing impacted assets, and potential challenges to project staff in implementing project activities

o Compensation Eligibility and Valuation : Establish eligibility criteria; describe Government’s methods of valuing impacted assets; explain the methods used for inventorying assets, assigning values for each type of asset, and process for finalizing agreements with project affected persons (PAP).

o Grievance Redress Mechanisms : Describe the mechanisms available to PAP for complaints about project impacts. Show accessibility of grievance redress mechanism (i.e. language, distance and cost) and what recourse/ appeal from local grievance may be available to PAP. Assess transparency and adequacy of grievance redress mechanism and ensure that “victims” have access to third-party appeals (freely) to ensure no conflict of interest with project activities.

o Funding : Describe viable arrangements for funding resettlement compensation and replacement of impacted assets. Include estimate of overall costs of resettlement including technical training and other accompanying social measures to ensure that PAPs are “better-off” afterwards.

o Participatory Monitoring & Evaluation : Provide an appropriate and transparent mechanism for effective participatory monitoring and evaluation of the implementation of resettlement operations. Describe how the subprojects implementation will be effectively monitored and evaluated, and at what frequency. Propose mechanisms ensuring that participatory M&E results are successfully fed back into project implementation.

o Template for a Resettlement Action Plan: Provide a generic description of the contents of individual RAPs for the subprojects activities. The template should include: nature of the subproject, magnitude of impacts, baseline census of people impacted including assets impacted, socio-economic information of impacted persons, entitlements of affected people, description of resettlement sites, programs for improving, or at least restoring, livelihoods and standards of living, subproject resettlement budget, grievance

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redress mechanisms and implementation schedule. As stated above, like the ESMF-PMP, the RAP template will also be incorporated into the Project Operations Manual.

C. Expected Outputs & Deliverables 

All outputs and reports are expected to be compiled in one final report for the ESMF (that includes a PMP) and one final report for the RPF. Both reports are required to be delivered by the Consultants to MPD in hard copy (3 sets of each report) as well as in electronic form on CD-ROM (3 discs, each including ESMF/PMP and RPF) no later than 90 (ninety) calendar days after the signing of the contract. All intermediary outputs and final reports should be in English with an executive summary (including main conclusions and where applicable, recommendations) for each report in both English and Portuguese language. The table herebelow provides an overview of the expected outputs for each phase, the primary work location and estimated time required for their completion. The Consultants are also expected to be invited by the the project team to present the main findings of the assignment. Hence, the Consultants will be required to produce a PowerPoint presentation in both Portuguese and English summarizing the main findings of the ESMF-PMP and the RPF.

Phase Expected Outputs Primary work location

Indicative time for completion

Phase 1 : Review of the relevant documentation

Listing of the documentation reviewedPotential lessons learned for next phases

Off-site, Maputo

3 days

Phase 2 : Rapid field assessment, appraisal, first consultations with stakeholders (incl. affected communities)+ Field assessment & preparation of draft final reports

Issues notes and minutes of meetings with various stakeholders including consultations with at least 2-3 communities per province. See also various outputs of ESMF-PMP and RPF under paragraph B Scope of the Assignment

On-site, Tete and Nampula via Ilha de Mocambique and Nacala

22 days

Phase 3 : Further field assessment and submission for review of draft final reports

Draft Reports that among others: (i) include the outputs of Phase 1&2, (ii) provides a summary account and details of outcomes of the activities carried out under Phase 2, (iii) provides detailed description of the way forward to implement the next phases, (iv) proposes a chronogram for the remaining activities, (v) proposes an

On-site, Tete and Nampula (including Ilha de Mocambique and Nacala)

30 days

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outline for the ESMF-PMP & RPF reports + Review of draft reports.

Phase 4: Incorporate first feedback from MPD & WB, draft final report writing,

Deliverable: Submission of draft final ESMF-PMP and RPF reports, CDROMs, revised PowerPoint presentation + Approval and public disclosure

Maputo 15 days

Phase 5: Field assessment + Second phase of public consultation (2-3/Province)

Public Disclosure at Provincial and District levels + Further discussions with locals.

Off-site, Tete, Nampula or Maputo

5 days

Phase 6: Evaluating the findings and completing the draft ESMF-PMP and RPF, presentation of final main results.

Deliverable: PowerPoint presentation, Final ESMF-PMP and RPF based on the agreed draft and including all components of ESMF-PMP and RPF under paragraph B Scope of the Assignment

Maputo 10 days

Phase 7: Incorporating final feedback from MPD and WB & submission of Final Reports.

Public disclosure of all Safeguards instruments both in-country and at the InfoShop prior to appraisal.

Maputo 5 days

GRAND TOTAL 90 Days

PAYMENT SCHEDULE : Payments will be made as follows : 40% at the launch of the consultancy ; 30% upon delivery of the Draft Reports, and the remaining 30% upon delivery of the Final Reports.

D. Consultant qualifications, expertise required and specific task

For this assignment, MPD is seeking to recruit one Individual Consultant with the profile here-below:

o Social/Environment/Natural Resources/Agriculture or Rural Water Engineering Specialist ( Task Team Leader ) : with at least 8 years of relevant experience in sub-Saharan Africa, with an emphasis on environmental and social impacts assessments in agribusiness/ private sector development and/or rural water management, and preferably experienced with similar assignments. A good knowledge of the Mozambican agriculture sector, rural development and/or environmental issues and policies prevailing in Mozambique is highly desirable. A University degree (preferably PhD) in one of the relevant disciplines is required. Ability to communicate and write in English or Portuguese, with a basic understanding of the other language is required. Understanding/speaking a local language would be a plus.The consultant is responsible for the coordination and delivery of both the RPF and the ESMF that includes a PMP, as well as preparation of

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PowerPoint presentation, and related activities. In that regards, s/he is responsible for not only ensuring that the RPF links back to the ESMF-PMP, so to avoid disconnect between the 2 documents, but for the quality review of the safeguards documents prior to its submission to MPD/MICOA and the World Bank.

o Overall, the consultant shall have at least 6 years of relevant experience in sub-Saharan Africa, including on community-driven or local development, with an emphasis on social impacts assessments in agriculture and/or rural water management, and preferably experienced with similar assignments. A good knowledge of the Mozambican rural sector and social development issues and policies prevailing in Mozambique is highly desirable.

The total number of paid days for the Team Leader for this assignment is not expected to exceed ninety (90) days.

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