INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized I. Basic Information Date prepared/updated: 06/05/2006 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE Report No.: AC Basic Project Data Country: Madagascar Project ID: P Project Name: Irrigation and Watershed Management Project Task Team Leader: IJsbrand Harko de Jong GEF Focal Area: M-Multi-focal area Global Supplemental ID: P Estimated Appraisal Date: June 5, 2006 Estimated Board Date: October 12, 2006 Managing Unit: AFTS1 Lending Instrument: Specific Investment Loan Sector: Irrigation and drainage (50%);Agro-industry (30%);Crops (20%) Theme: Other rural development (P);Other trade and integration (S) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): GEF Amount (US$m.): 7.20 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 0.00 LOCAL COMMUNITIES Environmental Category: A - Full Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) [ ] No [ ] 2. Project Objectives The development objective of the project is to sustainably increase agricultural productivity in four high potential watershed and their associated irrigation schemes. 3. Project Description The proposed project comprises three technical components covering three strategic orientations. A fourth component includes Program Management. In accordance with the???growth poles??? approach, the project proposes four similar sub-projectsin the four regions concerned: Andapa, Marovoay, Itashy Region, and Lac Aloatra??? Sahamaloto scheme. (i) Agricultural Development: to improve access to markets and to sustainably intensify and diversify irrigated and rainfed agricultural systems in the project???s watersheds. (ii) Irrigation Development: to improve management, maintenance and sustainability of irrigation services provision in four large-scale irrigation schemes through rehabilitation of irrigation infrastructure, capacity strengthening of stakeholders and clarification of roles and responsibilities, and establishment of an appropriate incentive framework.

2 (iii) Watershed Development: the sustainable management of the watershed including irrigated schemes, to preserve the natural heritage, to benefit from the production potential of the natural resource, and therefore contribute to improved living conditions and incomes of the rural population. (iv) Program Management: to use project resources in accordance with its purposes and procedures, to set up a political framework that is favorable to extending the project to the national level. 4. Project Location and salient physical characteristics relevant to the safeguard analysis Madagascar has a high natural erosion rate, as a consequence of its soil types and heavy rainfall, often linked to cyclones. This high natural erosion rate has been exacerbated by deforestation of erosion prone fragile soils, frequent bush fires and unsustainable agricultural practices in the watersheds, which made most of the watershed soils infertile and marginal for agricultural and livestock production. Livestock grazing makes it necessary to frequently burn low quality pastures, which lead to strongly aggravates land degradation and manmade erosion in the watersheds. This pattern of severe land degradation has lead over the years to reduced agricultural production and increased poverty. This, together with increased land scarcity, in the four high potential sites, has increased the pressure on the watersheds and has lead to increased deforestation and pressure on the globally important biodiversity resources in the upper and lower watersheds in three of the selected project sites: Marojejy National Park, the South Anjanaharibe Special Reserve, and the Makira Conservation Site all located in the upper watersheds around the Andapa irrigation scheme; the Ankarafantsika National Park located in the upper Maravoay watershed; and the Lake Alaotra Ramsar site. In Itasy agriculture is practiced on very steep slopes, which are in other places are obligatory kept under a forest cover to minimize erosion. Slash and burn agriculture is still practiced mainly at the Andapa site. These unsustainable agricultural practices together have exacerbated the already high natural erosion rates. Downstream irrigation schemes have been over time exposed to increasingly severe sedimentation and flooding, severely hampering irrigated rice production and increasing poverty. The impact of the environment on the agricultural production systems is severe. This situation was made worse by the absence of adequate maintenance of these schemes. 5. Environmental and Social Safeguards Specialists Mr Mohamed Arbi Ben-Achour (AFTS1) Mr Robert A. Robelus (AFTS1)

3 6. Safeguard Policies Triggered No Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Cultural Property (OPN 11.03) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The Madagascar Irrigation and Watershed Management Project has as an objective to reverse the trend of land degradation by rehabilitating, improving the management of and increasing the production in the existing irrigation schemes in the four selected project sites and by stabilizing or reversing land degradation in the watersheds through the promotion of more sustainable and higher productive agro-ecological practices. It is expected that these agro-ecological practices will reduce soil erosion and over time will reduce sedimentation in the downstream irrigation schemes. On a short term basis it is expected that these agro-ecological practices will significantly increase agricultural production of traditional and new crops in the watersheds and reduce poverty. One of the requirements for increased production will be the integration of agriculture and livestock (use of dung as fertilizer and organic soil conditioner). It is also expected that intensified agricultural practices will reduce or stabilize agricultural expansion and reduce the pressure on the remaining high biodiversity resources in the upper watersheds and on the marshlands in Lake Alaotra. It is expected that the project will have mostly beneficial environmental and social impacts. One of the project components is the watershed management component, which would normally be the Environmental and Social Management Plan (ESMP). The environmental and social management measures have been almost fully integrated into the project component designs. The beneficial environmental and social impacts have been demonstrated by the Regional Environmental and Social Assessment (RESA) prepared by the borrower. The main positive environmental impact will be the improvement in environmental services of the watersheds through the adoption of agroecological production systems and improved management of pastures, which will stabilize or reduce erosion rates, and increase agricultural production and incomes. However, intensified agricultural production needs more inputs in the form of chemical fertilizers and pesticides. The borrower has prepared a Pest and Pesticide Management Plan (PPMP) to mitigate the health and environmental impacts of increased pesticide use.

4 It is at present not clear if farmers will be able to afford and maintain the financing of increased inputs. Irrigation schemes in Madagascar are main sources of waterborne diseases, such as malaria and urinary and intestinal bilharzia and diarrhea. The four selected project sites are no exception. The Environmental and Social Management Plan (ESMP) has included measures to reduce these diseases in order not to impair the production capacity of the farmers and improve their quality of life. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The major potential environmental risk would be that through the success of the project by increasing agricultural production in the watersheds, the influx of migrants from other areas of Madagascar would be stimulated. These migrants would increase the already high pressure on land in the four project watershed areas, which could lead to further deforestation in the high biodiversity sites, and further clearing of reed lands in Lake Alaotra for rice production. The increased influx of migrants into the fragile watersheds could also lead to increased use of steep hills for agricultural production, which could again increase erosion rates. This is why land zoning and the empowerment of farmers and farmer???s groups to manage these lands are of fundamental importance. The transfer of land management to these groups would regulate the natural resource base of the watersheds to newcomers and facilitate improved sustainable management of these resources. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Feasible alternatives are the no project alternative and the project without a watershed management component. The no project alternative would allow further deterioration of the irrigation schemes and the watersheds with consequent negative impacts on poverty, agricultural production and negative impacts on the globally significant biodiversity sites and over-time eventually likely abandonment of these agro-ecosystems. The alternative without the watershed management component would leave the irrigation systems exposed to large sediment loads, which would endanger the investments made in the irrigation schemes. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. Safeguard Instruments prepared by the borrower. The borrower prepared a Regional Environmental and Social Assessment (RESA), a Pest and Pesticide Management Plan (PPMP) and a Resettlement Policy Framework (RPF). Borrower capacity and Implementation and monitoring of ESMP. The borrower???s capacity to supervise the implementation and monitor the implementation of the Environmental and Social Management Plan (ESMP) will be strengthened. One of the Technical Assistance to financed under the project needs to be qualified in environmental

5 and social management and will be responsible for the adequate implementation and monitoring of the implementation of the ESMP as part of his or her responsibility. Parts of the ESMP will be implemented by service providers under contract. If needed the capacity of these service providers will be strengthened. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Key Stakeholders. Key stakeholders are the farmers in the irrigation schemes and in the watersheds, the local Directorates of Agriculture, who will implement the program, other local government agencies and international conservation NGOs. Public consultation. Public consultation has been carried out on the Terms of Reference of the Regional Environmental and Social Assessment and on the draft report. This is conform OP Public consultation has also been carried out during the preparation of the RPF. This is conform OP Disclosure. The Regional Environmental and Social Assessment, the Pest and Pesticide Management Plan and the Resettlement Policy Framework have been disclosed at the four project sites, in the capital and in the Infoshop in Washington. The Executive Summary of the RESA has been sent to the Board. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Date of receipt by the Bank 03/14/2006 Date of "in-country" disclosure 03/13/2006 Date of submission to InfoShop 04/04/2006 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Date of receipt by the Bank 03/14/2006 Date of "in-country" disclosure 03/13/2006 Date of submission to InfoShop 03/20/2006 Pest Management Process: Date of receipt by the Bank 03/14/2006 Date of "in-country" disclosure 03/13/2006 Date of submission to InfoShop 03/20/2006 * If the project triggers the Pest Management and/or Cultural Property, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why:

6 C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP Environment Assessment Does the project require a stand-alone EA (including EMP) report? If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? OP/BP Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? OP Pest Management Does the EA adequately address the pest management issues? Is a separate PMP required? If yes, has the PMP been reviewed and approved by a safeguards specialist or SM? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? OP/BP Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? OP/BP Forests Has the sector-wide analysis of policy and institutional issues and constraints been carried out? Does the project design include satisfactory measures to overcome these constraints? Does the project finance commercial harvesting, and if so, does it include provisions for certification system? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank s Infoshop? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? No N/A No N/A N/A

7 Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr IJsbrand Harko de Jong 04/27/2006 Environmental Specialist: Mr Robert A. Robelus 04/27/2006 Social Development Specialist Mr Mohamed Arbi Ben-Achour 04/27/2006 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Warren Waters 04/27/2006 Comments: Sector Manager: Mr Frank Fulgence K. Byamugisha 04/27/2006 Comments: