Report No.:

INTEGRATEDSAFEGUARDSDATASHEET APPRAISAL STAGE

Date prepared/updated: November 14, 2013/November 25, 2013

I. Basic Information

1 B . P . tD t . as1c ro_1ec a a Country: Egypt I Project ID: Pl28526

I Additional Project ID (if any) : NIA Project Name: Egypt Development Marketplace 2013 Task Team Leader: Drew von Glahn Estimated Appraisal Date: N/ A I Estimated Board Date: Managing Unit: WBIIN I Lending Instrument: Grants Sector: SME Finance Theme: Micro, Small, and Medium Enterprise Support IBRD Amount (US$m.): 0 IDA Amount (US$m.): 0 GEF Amount (US$m.): 0 PCF Amount (US$m.): 0 Other financing amounts by source: $675,000 Environmental Category: B Is this a transferred project I Yes r 1 NofX] Simplified Processing I Simple [] Repeater Is this project processed under OP 8.00 (Rapid Response to Crises Yes [ ] and Emergencies)

2. Project Objectives:

] No lXJ

The main objectives of the Egypt Development Marketplace (DM) program are to create jobs, alleviate poverty, and promote an inclusive and equitable economic development model in Egypt More specifically, the Egypt DM will focus on providing fmancial and technical support to existing social enterprises to help them scale-up their impact~ strengthen their institutional capacity, and create more jobs.

The Egypt DM aims to directly contribute to initially creating jobs for at least 100 poor young men and women with a focus on poverty pockets in rural Egypt. Intermediate goals include supporting 27 existing social enterprises scale-up their impact and develop financially viable business models. Through this scaling-up support, these social enterprises are expected to create additional jobs as they continue to grow over the coming few years.

3. Project Description:

Development Marketplace (DM) is a competitive grant program (housed in the World Bank and administered by the World Bank Institute) that identifies and funds innovative, early stage social

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enterprises - within different countries - with high potential for development impact that are scalable and/or replicable. The Egypt DM aims to directly contribute to creating jobs for at least 100 poor young men and women, and indirectly contribute to alleviating poverty of at least 200 individuals, with a focus on poverty pockets in rural Egypt. Intermediate goals include supporting 27 social enterprises scale-up their impact (distributed across 12 Governorates in Egypt).

An additional intermediate goal is to nurture the nascent ecosystem of funders, corporates, DFis, foundations and technical service providers to support the growth and sustainability of the social enterprises. This will have a deep long term impact on the private sector's ability to address the social needs such as livelihood and the delivery of key basic services (e.g. education, health, sanitation, etc). By engaging and supporting these players, the Egypt DM also aims to contribute to strengthening the eco-system of entrepreneurship and social impact investment in Egypt.

While the Egypt DM is being managed and coordinated by the WBI, the Egypt DM is a collaborative effort supported by internal and external partners. Financial and technical support has been pledged by a number of local organizations and foundations as well as bilateral and multilateral international donor organizations and private sector corporations. JFC and WB country team are intricately involved in the goals, design and implementation of the DM program. Additionally, over twenty-five external partners were similarly engaged.

Egypt DM program, in partnership with the country team and IFC, will support the grantees during the project implementation period of 12 months.

Targeted Sectors:

The focus of the program will be on agriculture supply chains in order to reach some of the poorest young men and women in rural areas and help them secure sustainable livelihoods for themselves and their families. Those include rural-based agricultural waste management, clean energy and food processing (employing poor rural youth in general), as well as handicrafts/fair trade programs (mainly employing poor rural young women). These enterprises largely op~rate in the rural impoverished area of the Upper Nile.

More specifically, the 27 projects fall under the following sub-sectors and activities:

A) Food processing/production: • Bee-hives honey production and packaging • Production and drying of vegetables (i.e. tomato paste production and sun-dried

tomatoes) • Processing and packaging of vegetables and fruit (i.e.

pomegranate) • Dairy production (cheese, milk, yogurt and other milk derivatives)

B) Agricultural waste management: • Composting rice straw waste into animal fodder • Composting rural household wastes and livestock wastes into organic fertilizers

• Linkages with post-harvest stations and packaging facilities

C) Handicrafts and small manufacturing: • Handicrafts from agricultural waste such as palm trees • Rural women-produced traditional handicrafts such as tapestry, weaving,

traditional scarves, intricate and detailed sewing, silk products, etc. • Pottery • Clothes manufacturing • Furniture manufacturing

D) Animal farming: • Poultry and rabbit farming

E) Vocational Development: • Training on vocational skills (i.e. training mechanics on agricultural machinery

maintenance and repair) • Training on customer services (i.e. hospitality services for tourism industry) • Training on business planning, marketing, etc.

Targeted Social Enterprises:

The grant beneficiaries are existing social entrepreneurs with projects that aim to create jobs and/or to deliver a range of social and public services to low-income groups and are in need of scale-up financing. This includes social entrepreneurs with existing operational pilot projects that possess a proof of concept that have potential for scaling/replicating impact. The social enterprises can be either for- profit or non-profit oriented projects registered under Egyptian law.

Beneficiaries Targeted by the Social Enterprises:

In line with the global DM strategy, the Egypt DM will target the lowest three dcciles of young rural Egyptian men and women.

Activities:

To fulfill its mission and achieve its objectives, the Egypt DM will carry out the following three key activities:

Activity 1: Providing Financial Support:

Grants to Existing Social Enterprises: With the main goal of strengthening their operational capacity and thereby drive the organization's social impact. For each social enterprises will receive a grant ofUS$25K. 'Ibe grant is to invest in their organizations as well as to acquire goods and services that would enable them to scale up their operations.

Activity 2: Providing Training, Market Access & Mentoring Services:

In addition to financial support through grants, technical assistance and mentoring are an integral part of the DM model and wa.<; strongly emphasized throughout consultations with different Egyptian stakeholders. Pre-selection technical support (targeted to finalists) included workshops on 1) communication skills, 2) proposal-writing, 3) budgeting and 4) social impact/monitoring & evaluation. Post-selection technical support (targeted to grantees) would include standardized business training as well as more customized services covering areas such as financial management and planning as well as other technical skills customized depending on sector of activity. The capacity building services benefit from the engagement ofthe IFC's Climate Change team.

Activity 3: Work with local and international partners to build a sustainable ecm.ystem.

A group oftwenty-five capital providers/funders, advisors and corporate partners have come together around the DM Egypt 2013. In order to ensure that local social enterprises can flourish and scale their impact, it is critical that there is a supportive operating environment. This group of similarly committed organizations offer the opportunity for the community to take ownership of the potential and future of the social enterprise sector. The DM Egypt looks to provide assistance in the design and sustainability of such partnerships.

4. Project Location and salient physical characteristics relevant to the safeguard analysis:

The 27 social enterprises under the Egypt DM are distributed across 12 Governorates in Egypt with the majority located in Upper Egypt (southern part of the country). The program is providing small grants of$25,000 to 27 social enterprises operating along the agricultural supply chain in rural Egypt. The 27 social enterprises being funded by the program are targeting poor, unemployed, low-skilled individuals (with a focus on gender inclusion). The projects that shall be undertaken by the social enterprises aim are labor-intensive and focused on job creation and enhancing the economic opportunities of the poor. Several projects aim at addressing environmental hazards in their communities through composting of agricultural waste into organic fertilizers or using it as inputs into other industries.

5. Environmental and Social Safeguards Specialists on the Team:

Suiko Y oshijima (MNSEE)

6. Safeguard Policies Triggered (please explain why)

Environmental Assessment (OPIBP 4.01) Natural Habitats (OPIBP 4.04) Forests (OP/BP 4.36)_ Pest Management (OP 4.09) Physical Cultural Resources (OPIBP 4.11) lndi2enous Peoples (OP/BP 4.10) Involuntary Resettlement (OPIBP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Watenvays (OPIBP 7.50) Projects in Disputed Areas (OPIBP 7.60)

II. Key Safeguard Policy Issues and Their Management

A. Summary of Key Safeguard Issues

Yes No X

X

X

X

X

X

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X

X

X

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 majority of sub-projects funded by the Development Marketplace are expected to be activities which can provide substantial economic and environmental benefits rather than causing disturbances. Each activity is also expected to be small scale (no more than US$25,000 per sub­project) and labor intensive where impacts would be very limited.

The main environmental risks of 27 selected sub-projects are those associated with nuisances (dust, odors, and noise), solid waste management, and environmental health and safety on the worksite, therefore, such impacts can be addressed by following standard environmental measures.

Accordingly, the project is classified as Category "B" in accordance with World Bank Operational Policy 4.01 Environmental Assessment. OP 4.09 Pest Management is also triggered because some sub-projects include agricultural activities and might involve the use of pesticide. However, it is not anticipated that the sub-projects in general will result in the promotion of widespread pesticide use. The checklist is designed to identify the potential use of pest management activities in sub-projects and, as needed, recommend simple measures.

OP4.04 is not triggered it was confirmed by local team members that none of27 projects will be located within sensitive or protected areas such as Nile islands. OP 4.12 on involuntary resettlement does not apply as none of the eligible activities involve land acquisition or restriction of access to land or resources.

There are no potential large-scale, significant and/or irreversible impacts associated with this project.

2. Describe any potential indirect and/or long tenn impacts due to anticipated future activities in the project area:

No cumulative impacts are expected. The work will be small scale and it is very unlikely to cause long term impacts.

3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts:

N/A

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:

OP 4.01 is triggered and the Integrated Assessment Framework (lAF) including safeguards checklist and good practice mitigation measures are prepared. Each sub-project completed the screening by filling out the IAf'. The IAF was reviewed by the task team supported by an environmental specialist and recommendations were made to enhance mitigation measures utilizing the good practices mitigation measures prepared as part of the IAF. Since the social enterprises arc not familiar with the World Bank safeguards policies and the capacity is weak, close support and monitoring should be provided by the WBI Task team with technical support from the region.

Egypt DM STC will include training on good practice mitigation measures to 27 social cnterpri~es which will be provided as part of the post-selection technical support.

5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people:

The competition's outreach was initiated in December 2012. Key stakeholders involve the NGOs that applied for the competition and went through 3 rounds of assessment prior to final selection. A capacity building workshop /training was organized in April 2013 pre-selection and training on good environmental practice will be covered as part of post-selection technical support.

B. Disclosure Requireme11ts Date

Environmental Assessment/ Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Date of receipt by the Bank NIA Date of "in-country" disclosure NIA

Date of submission to InfoShop TBD as soon as ISDS is

cleared For category A projects, date of distributing the Executive NIA Summary of the EA to the Executive Directors

Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? NIA Date of receipt by the Bank NIA

Date of "in-country" disclosure N/A Date of submission to Info Shop NIA

Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank NIA Date of "in-country" disclosure N/A Date of submission to InfoShop N/A

Pest Management Plan: Was the document disclosed prior to appraisal? NIA Date of receipt by the Bank N/A Date of "in-country" disclosure NIA Date of submission to InfoShop N/A

* If the project triggers the Pest Management and/or Physical Cultural Resources policies, 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:

C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting)

OPIBP 4.01 - Environment Assessment Does the project require a stand-alone EA (including Yes [ x] No [] N/A [] 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 4.04- Natural Habitats Would the project result in any significant conversion or Yes [ ] No [] N/A [X] 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 4.09 - Pest Management Does the EA adequately address the pest management Yes [ x] No [] N/A [] issues? Is a separate PMP required? Yes [ ] No[x] NIA [] If yes, has the PMP been reviewed and approved by a safeguards specialist or Sector Manager? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? OP/BP 4.11- Physical Cultural Resources

Does the EA include adequate measures related to Yes [ ] No [ ] NIA ( x] culturalproperty? Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on physical cultural resources? OPIBP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Yes [ ] No L ] N/A [X] Framework (as appropriate) been prepared in consultation with affected Indigenous Peoples? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? If the whole project is designed to benefit IP, has the design been .reviewed and approved by the Regional Social Development Unit? OPIBP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy Yes [ ] No [ ] N/A [ X] framework/process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Manager review and approve the plan/policy fTamework/process framework? OP/BP 4.36- Forests Has the sector-wide analysis of policy and institutional Yes [ ] No [ ] N/A [X] 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? OPIBP 4.37 - Safety of Dams Have dam safety plans been prepared? Yes [ ] No [ ] N/A [X] Have the TORs as well as composition for the independent Panel of Experts (POE) been reviewed and approved by the Bank? Has an Emergency Preparedness Plan (EPP) been prepared and arrangements been made for public awareness and training? OPIBP 7.50- Pro.iects on International Watenvays I lave the other riparians been notified of the project? Yes [ ] NoL l N/A[x] If the project falls under one of the exceptions to the notification requirement, has this been cleared with the Legal .Department, and the memo to the RVP prepared and sent? What are the reasons for the exception? Please explain: lias the RVP approved such an exception?

OPIBP 7.60 - Pro.iects in Disputed Areas

Has the memo conveying all pertinent information on the Yes [ ] No[ ] NIA [X] international aspects of the project, including the procedures to be followed, and the recommendations for dealing with the issue, been prepared Does the PAD/MOP include the standard disclaimer referred to in the OP? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to Yes [ x] No [] NIA [] the World Bank's Infoshop? Have relevant documents been disclosed in-country in a Good practices will be translated and public place in a form and language that are shared with the enterprises. understandable and accessible to project-affected groups and local NGOs? All Safesruard Policies Have satisfactory calendar, budget and clear institutional Yes [ x] No [] N/A [] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been Yes included in the project cost? Does the Monitoring and Evaluation system of the Yes project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been Yes agreed with the borrower and the same been adequately reflected in the project legal documents?

D. Approvals

Sif(ned and submitted by: Name Date Task Team Leader: Drew von Glahn (WBIIN) November 20,

2013 Environmental Specialist: Suiko Yoshijima (MNSEE) November 20,

2013 Social Development Specialist Additional Environmental and/or Social Development Specialist(s):

Approved by: Regional Safeguards Coordinator: Tak~a~ for Maged Hamed, MNAOS November

26,20 13 Comments:

Sector Manager: Comments:

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