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Great Lakes Trade Facilitation (GLTF) Project for Uganda

Environmental and Social Management Framework for Border Post/Market Projects

The Ministry of Trade Industry and Cooperatives (MTIC) in collaboration with other Government agencies intends to implement a Great Lakes Trade Facilitation (GLTF) project focusing on improving regional infrastructure and in particular remove both at and behind the border constraints to regional trade. The project will support efforts for reducing nontariff barriers to intraregional trade, by improving regional environments for business and by supporting regional measures to improve governance. In addition the project is designed to address underlying sources of conflict as well as poverty and under-development at the Ugandan border with Democratic Republic of Congo (DRC), as well as contributing to the attainment of key regional commitments on Peace and Security. Cross-border trade will be used as a toll for stimulating and facilitating agricultural trade and increasing resilience and social cohesion

Project Description

The Project Development Objective (PDO) of GLTFP is to facilitate cross-border trade by increasing the capacity for commerce and reducing the costs faced by traders, especially small-scale and women traders, at targeted locations in the borderlands.

The GLTFP consists of 4 Components: (1) Improving core trade infrastructure and facilities in the border areas, (2) Implementation of Policy and Procedural Reforms and Capacity Building to Facilitate Cross Border Trade in Goods and Services (3) Performance Based Management in Cross Border Administration and (4) Implementation support, Communication, Monitoring and Evaluation. Of the total of US$ 79 million of the World Bank, the allocation to the Government of Uganda will be US$ 10 million. The counterpart funding from the Government of Uganda is US $3 million.

The Government of Uganda will implement the project with funding from World Bank and targeting three border crossing points to the Democratic Republic of Congo-namely, Bunagana, Mpondwe and Goli. Interventions under the project will include improving corer infrastructure and facilities at the border posts, undertaking procedural reforms to facilitating cross border trade, promoting performance based border management in cross border trade administration and ensuring effective communication, monitoring and evaluation. Of these, the major allocation will be in Mpondwe, whereas investments / sub-projects in Goli and Bunagana will be minor.

The Border post/ market infrastructure is the largest component of the Project and is planned to cost about 70% of the total budget. The component seeks to improve existing customs offices, border crossing roads and road junctions, drainage systems including sanitation facilities and green spaces through landscaping. Improvements to core infrastructure and facilities will be implemented under two subcomponents, one on improving border infrastructure and facilities and the second on establishing Border Markets. In the first phase the border market aspects will be limited to analytics undertaking feasibility and impact studies, assessing product value chains and establishing mechanisms for enhancing the system, development of Master Plans and implementation of the enterprise development and value addition component of the program. Construction of the physical border markets will be covered in the second phase.

The project shall be managed through a Steering Committee comprised of representatives from various Ministries, Internal Affairs, MTIC, MFPED, MAAIF and MOWT. The Ministry of Trade, Industry and Cooperatives (MTIC) will be responsible for the overall coordination of the project and will chair the Steering Committee. The policy mandates and composition of the Steering Committee is illustrated in the table 2.

A technical Working Group (TWC) will provide oversight, guidance and advisory functions to the Project implementation Units. The TWC will develop TORS, review reports and provide guidelines and way forward on the outputs and reports developed under the GLTF Project. The composition of the TWC is indicated in table 3.

Project Management Units, the main one in the MTIC and the other in the MOWT ministry of works and transport shall be responsible for executing and managing day-to-day operations of the activities under their respective components.

Project environmental category

In accordance with the Bank’s safeguard policies and procedures, including OP/BP/GP 4.01 Environmental Assessment, the project category is B.  As during appraisal it is not possible to identify which sub-project or grant will be financed, it is necessary to prepare an Environmental & Social Management Framework (ESMF), which would specify all rules and procedures for the sub-projects EA.

About Environmental and Social Management Framework (ESMF)

The Environmental and Social Management Framework (ESMF) is intended for the border posts/ market component of the GLTF project. It describes the proposed GLTF components, identifies likely social and environmental impacts and proposes management measures to control socio-environmental effects during project implementation. More to this, the ESMF provides management measures as guidelines for carrying out environmental screening and assessments including initial examinations, Environmental Impact Assessment (EIA), and preparation of the Environmental Management Plan (EMP) to mitigate project induced negative environmental impact and to enhance positive environmental and social impacts.

Potential socio-environmental impacts likely to arise from project implementation have been predicted and mitigation actions proposed. The ESMF provides information on the expected encumbrances on the sites to be developed, procedures to be followed in acquiring land for the site, institutions that will be responsible for mitigating social and environmental impacts including their capacity gaps, mechanism for addressing grievances emanating from implementation of the project and mechanism for managing and monitoring acquisition of the land and relocations that may take place.

The ESMF indicates also the relevant policies and laws governing land acquisition, compensations where it is required in the process of developing the site and the institutions to coordinate the process. In preparing the document, relevant environment and social safeguard practices and compliance of the World Bank were reviewed.

The ESMF specifies no Category A investments / sub-projects will be supported under the project. Under institutional arrangements, the project will also support training and capacity building of investments / sub-project beneficiaries and their consultants / contractors. Lastly, the ESMF specifies the rules and procedures for the EA documents’ disclosure, grievance management and public consultation.

Potential Socio-Environmental Impacts of the Border Post/Market infrastructure Component of the GLTF Project

Potential impacts (beneficial and negative) of proposed GLTF project are broadly discussed in section 7 and show that actual impacts and their significance may be site-specific and dependent on type of infrastructure under development.

A summary of positive social impacts of GLTF projects are provided in table below.

 

Project component

Benefit/ impact

1 a

Improvement of border post infrastructure at Bunagana, Mpondwe and Goli

Enhanced cross border trade traffic flow and security, movement towards coordinated one stop border, improved revenue collection, improved border transport infrastructure and facilities, reduced travel time and cost, improved drainage in and around the border posts, enhanced public health of the communities, and generally improved environment for people to live and work

1 b

Establishment of Border Markets

Enhanced exports due to increased border market infrastructure, increased incomes and employment opportunities for border communities including the disadvantaged groups

2.

Policy Reforms to Facilitate Cross Border Trade

Improved border crossing regulatory framework, movement towards coordinated one stop border posts, and enhanced cooperation to facilitate trade in services especially logistics, financial and key professional services.

3

Capacity Building to Facilitate Cross Border Trade

Enhanced institutional capacity, approved approach to cross border trade management, and enhanced regional coordination of STR programs.

Table below outlines a summary of negative environmental impacts proposed GLTF border infrastructure development from construction to post- construction phase.

  1. 1.

Impact on wetlands due to improper management of cut to spoil resulting into loss of wetland cover:

  1. 2.

Impact on human health resulting from contaminations due to improper management of construction waste management, dust plumes from construction operations

  1. 3.

Impacts related to sourcing of materials including the staining of dwellings and traded goods by dust from haulage

  1. 4.

Impact on local watercourses and hydrology including soil erosion, damage to water sources around the construction sites

  1. 5.

Noise and vibrations during construction that may affect site dwellings, commercial establishments and institutions.

  1. 6.

Impact on local air quality during road use

  1. 7.

Resultant climate change impacts in form of increased extreme heat, induced luxuriant vegetation growth and heavy storms and flooding

Impact on cultural heritage sites in and around the site

  1. 9.

Visual blight and contamination due to improper decommissioning

10.

Gender and disability related impacts including compromised privacy of women on foot bridges,

too high foot bridges for women and the elderly.

11.

Economic impacts in form of temporary severance of access to business premises, displacement of taxi stages and commuter and markets

12.

Aesthetic impacts inform of temporally impairment of visual amenity of the sites where projects are undertaken, flooding, pollution and low flows in streams and rivers:

Implementation arrangements for the project and ESMF

The lead agency responsible for the implementation is the Ministry of Trade, Industry & Cooperatives (MTIC). For the investments / sub-projects to be implemented under Component 1.1, the Ministry of Works & Transport (MoWT) will be responsible in entirety. For the initiatives on all other components, they shall be implemented byMTIC, the lead institution, supported by the following agencies - Immigration, Uganda Revenue Authority, Agriculture and Uganda Bureau of Statistics will be involved. For the ESMF implementation, the PMU within the MTIC will be responsible for the day-to-day management. The PMU will include a Safeguards-In-charge, who will coordinate all the safeguards functions, across the entire project. In the MoWT, a project team will be responsible for the day-to-day management. An engineer will be assigned as the safeguards-in-charge to coordinate both the MTIC and with the contractors and consultants associated with the investments / sub-projects. Direct environmental and social impacts are only envisaged in Component 1, and hence safeguards capacity has been planned. For the remaining components, there are no direct environmental and social impacts and no specific capacity additions are required. Representatives of Ministries, consultants and contractors will be trained on this ESMF, World Bank Polices, NEMA requirements, ESIA and ESMP.

Budget Estimates for the GLTF Project

GLTF Project is estimated to cost US $ 13 million, and will be implemented over a period of 5 years from 2015 to 2020. The project will also provide funds for institutional development by building the capacity for lead agencies to enable effectively implement, manage and monitor the project.

A specific budget estimate for compensations and implementation of other environmental mitigations that will be involved has not been made because the size and area scope of operation on some sites are not yet known.

Public Consultation and Disclosure

Preparation of the ESMF followed undertaking field visits and consultations with key stakeholders both public and private sectors players including, border agencies, Local Government Authorities, cross border traders, local communities and the main implementing agencies such as NEMA, MOWT, UNRA, MFPED and MTIC, among others. Consultations provided understanding and enabled identification of environmental concerns. These consultations include both field-level consultations and with the agencies at the national level.

During the EIA review, the public will be given additional opportunity for ensuring that their views and concerns have been adequately addressed in the EIA. Any earlier omissions or oversight about the project effects will be raised at this stage. The ESMF together with the RPF will be disclosed for a minimum period of 60 days (until 13 June) to allow for the public to raise any other concerns before the project approval process can proceed.

Read More: GLTF-Environmental and Social Management Framework for Border Post/Market Projects

 



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