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Integrated Safeguards Data Sheet (Initial)

Section I - Basic InformationDate ISDS Prepared/Updated: 03/13/2003A. Basic Project Data (from PDS)I.A. 1. Project StatisticsCountry: MONGOLIA Project ID: P077778Project: TA: Economic Capacity Building TA Task Team Leader Vera SongweAuthorized to Appraise Date: March 20, 2003 IBRD Amount ($m):Bank Approval: June 5, 2003 IDA Amount ($m): 8.03Managing Unit. EASPR Sector: General public administration sector (100%)Lending Instrument: Technical Assistance Loan (TAL) Theme: Macroeconomic management (P); OtherStatus: Lending public sector governance (P); Other economic

management (S)

I.A.2. Project Objectives (From PDS):The development objective of the proposed Economic Capacity-building Technical Assistance Credit(ECTAC) is to support medium-term macroeconomic stabilization through improved public expendituremanagement and public administration refonm. This will enable the Govemment of Mongolia toimplement its Economic Growth and Poverty Reduction Strategy (EGPRS) in a fiscally disciplinedenvironment. Specific actions by the authorities to implement the Strategy are proposed to be supportedby the International Development Association (IDA) through a series of single-tranche PovertyReduction Support Credits (PRSCs) over the next three years. The project will provide the core technicalassistance and institution-building support to the Government so that it can effectively design,implement, monitor and sustain the poverty reduction program proposed to be supported through thePRSCs.

Specifically, the project will provide capacity-building technical assistance for enhancing theeffectiveness of public expenditures in reducing poverty through:* Effective implementation of the landmark Public Sector Management and Finance Law (PSMFL)by Strengthening of Public Expenditure Management processes and systems* Modernizing Public Administration and the Civil Service.

The activities under the ECTAC components will strengthen the budget preparation, budget fonnulation,execution and oversight processes, increase public sector accountability, and enhance thepoverty-reducing impact of public expenditures

l.A 3. Project Description (From PDS):

Components:

1. Strengthening Public Expenditure Processes:(i) Disciplining budget preparation, planning and fonnulation(ii) Developing budget and expenditure planning processes at the agency level(iii) Improving budget execution and accountabilityStrengthening budget oversight and monitoring processes

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2ISDS

2. Modemizing the Public Administration and the Civil Service(i) Strengthening Civil Service Management Capacity and Professionalism(it) Establishing a Human Resource Management and Information System (HRMIS)(iii) Rationalizing the Civil Service Wage Bill, Employment and IncentivesStrengthening Accountability for Performance3. Implementation Arrangements

I.A.4. Project Location: (Geographic location, information about the key enviromnental and socialcharacteristics of the area and population likely to be affected, and proximity to any protected areas, or sitesor critical natural habitats, or any other culturally or socially sensitive areas)

B. Check Environmental Classification: C (Not Required)

Comments.

C Safeguard Policies Triggered (from PDS)(click on I for a detailed desciption or click on the policy number for a brief description)

Policy TriggeredEnvironmental Assessment (OP 4.01, BP 4.01, GP 4.01) (U Yes 0 NoNatural Habitats (OP 4.04, BP 4.04, GP 4.04) 9) Yes * No

Forestry (OP 4.36, GP 4.36) Q) Yes * No

Pest Management (OP 4.09) (9 Yes * No

Cultural Property (OPN 11.03) Yes * No

Indigenous Peoples (OD 4.20) (_) Yes * No

Involuntary Resettlement (OP/BP 4.12) ( Yes 0 No

Safety of Dams (OP 4.37, BP 4.37) ( Ycs * No

Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) ( Yes 0 No

Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* (_) Yes * No

Section 11 - Key Safeguard Issues and Their ManagementD. Suinmiary of Key Safeguard Issues. Pleasefill in all relevant questions 1f informalion is not available,describe steps to be taken to obtain necessary data.

3ISDS

II D la. Describe any safeguard Issues and impacts associated with the proposed project Identify anddescribe any potential large scale, significant and/or irreversible impacts

11 D. Ib. Descnbe any potential cumulative impacts due to application of more than one safeguard policy ordue to multiple project component.

II D. Ic Describe any potential long term impacts due to anticipated future activities in the project area.

II.D.2. In light of 1, describe the proposed treatment of alternatives (if required)

H.D.3. Describe arrangement for the borrower to address safeguard issuesNot applicable.

Hl.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure onsafeguard policies, with an emphasis on potentially affected people.The preparation of the EGPRS has been extensively participatory. The challenge will be to devise a wayto continue the participatory process into the implementation phase of the EGPRS, particularly throughthe implementation of the PRSCs and the ECTAC. Improvements in treasury management and reportingwill improve access to budget information and policy planning for civil society and other keystakeholders. Parallel financing through a PRSP Trust Fund will assist in developing and strengthening inthe capacity of civil society to monitor the implementation of the EGPRS agenda.

The formation of a National Civil Society Advisory Council is being discussed to monitor and coordinatecivil society participation in the implementation of the EGPRS. This Council will perhaps also reviewimplementation of the PRSC and the ECTAC.

In addition, the proposed Service Delivery Survey (to be financed through the PHRD Grant forpreparation of the PRSC) affords opportunity for direct participation of and feedback from keystakeholders. Periodic surveys are proposed to be conducted during the implementation period to assessthe impact of the reforms and to take corrective measures to improve implementation.

E. Safeguards Classification (select in SAP) Category is determined by the highest impact in any policy.Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy istriggered the provisions of that policy apply.

[S. - Significant, cumulative and/or irreversible impacts; or significant tecluhical and institLtional risksin management of one or more safeguard areas

S2 - One or more safeguard policies are triggered, but effects are limited in their impact and aretechnically and institutionially manageable

[X] S3. - No safeguard Issues[ SF. - Financial internediary projects, social development funds, community driven development or

similar projects which require a safeguard framework or programmatic approach to addresssafeguard issues.

4ISDS

F. Disclosure Requirements

Environmental Assessnment/Analysis/Management Plan Expected ActualDate of receipt by the BankDate of "in-country" disclosureDate of submission to InfoShopDate of distributing the Exec. Summary of the EA to the ExecutiveDirectors (For category A projects)

Resettlement Action Plan/Framework: Expected ActiualDate of receipt by the BankDate of "in-country" disclosureDate of submission to InfoShop

Indigenous Peoples Development Plan/Framework: Expected ActualDate of receipt by the BankDate of "in-country" disclosureDate of submission to InfoShop

Pest Management Plan: Expected ActualDate of receipt by the BankDate of "in-country" disclosureDate of submission to InfoShop

Dam Safety Management Plan Expected ActtalDate of receipt by the BankDate of "in-country" disclosureDate of submission to InfoShop

If in-country disclosure of any of the above documents is not expected, please explain why.

Si2ned and submitted by Name DateTask Team Leader' Vera Songwe 02/21/03Project Safeguards Specialists 1: Naoya Tsukamoto/Person/World Bank 03/01/03Project Safeguards Specialists 2: Bruce M. Harris/Person/World Bank 03/07/03Project Safeguards Specialists 3.

Approved by: Name DateRegional Safeguards Coordinator: Glenn S Morgan 03/11/03CommentsREGIONAL SAFEGUARDS UNITS DIRECTOR: Maria Teresa Serra

Sector Manager/Director Tamar Manuelyan Atinc 02/21/03