Attachment J10 - IEE.pdf

INITIAL ENVIRONMENTAL EXAMINATION (IEE)

REQUEST FOR CATEGORICAL EXCLUSION (RCE)

Project/Activity Data:

Project/Activity Name: Urban Connect Activity Amendment No Geographic Location(s): Philippines Implementation Start Date: 1/3/2022 End Date: 12/31/2027 Bureau Tracking ID:

Tracking ID of Related RCE/IEE (if any):

Tracking ID of Other, Related Analyses (if any):

Organizational/Administrative Data

Implementing Operating Unit(s): Philippines Total Estimated Cost: $20 million

If amended, specify previous funding amount:

If amended, specify new funding total:

Prepared by: John Avila Date Prepared: 5/5/2021

Environmental Compliance Review Data

Environmental Determination(s):

Categorical Exclusion: [ X ] Negative Determination with Conditions: [ X ] Positive Determination: [ ] Deferral: [ ]

IEE Expiration Date: 12/31/2027

Additional Analyses/Reporting Required

Climate Risk Rating(s): Low ___X___ Moderate __X____ High ______

Asia 22-010

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION

PROJECT/ACTIVITY NAME: Urban Connect Activity

Bureau Tracking ID: ______________________

Clearance:

Office Director, Clearance __/s/ JGoebel_________ __7/14/21_________

Jeff Goebel Date

Mission Environmental Officer Clearance ______/s/____________ ______5/20/21_______

Marian C. Navata Date

Regional Environmental Advisor Clearance _____/s/____________ ______12/01/21____

Shamenna Gall Date

Acting Deputy Mission Director Clearance ____/s/JTGJTG/clear_________ _____12/2/21________

Jeff Goebel Date

APPROVAL:

Acting Mission Director /s/ 12/2/2021 Sean Callahan Date

CONCURRENCE:

Bureau Environmental Officer ________________ _________________ William Gibson Date

///////s/s/s/s/// Sean Callahan 12/9/21

William L Gibson Digitally signed by William L Gibson Date: 2021.12.13 08:46:01 -05'00'

1.0 PROJECT/ACTIVITY DESCRIPTION

1.1 PURPOSE AND SCOPE

The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22 CFR 216), is to provide a preliminary review of the reasonably foreseeable effects on the environment of the USAID intervention described herein and recommend determinations and, as appropriate, conditions, for these activities. Upon approval, these determinations become affirmed, per 22 CFR 216 and specified conditions become mandatory obligations of implementation. This IEE also documents the results of the project/activity level Climate Risk Management process in accordance with USAID policy (specifically, ADS 201mal).

This IEE is a critical element of USAID’s mandatory environmental review and compliance process meant to achieve environmentally sound activity design and implementation. Potential environmental impacts should be addressed through formal environmental mitigation and monitoring plans (EMMPs) and/or Environmental Assessments (EAs), if needed.

1.2 PROJECT/ACTIVITY DESCRIPTION

The primary goal of Urban Connect Activity is to promote inclusive and resilient economic growth of Cities Development Initiative (CDI) cities by (1) enhancing local economic development and (2) improving public service delivery. To advance local economic development, this activity will (1a) improve the enabling environment for private investment and enterprise growth, and (1b) to strengthen inter-LGU coordination and connectivity. To improve public service delivery, this activity will (2a) strengthen public financial management and (2b) advance e-government solutions. As a cross cutting objective, this activity will engage the private sector, promote resilience especially on climate and disaster-related, and ensure gender and social inclusion.

Upon approval of this document, the determinations become affirmed Threshold Decisions, per Agency

22 CFR 216.

TABLE 1: ENVIRONMENTAL DETERMINATIONS

Tasks/Activities Categorical Exclusion Citation (if applicable)

Negative Determination

Positive Determination1

Deferral2

Objective 1: Local Economic Development Enhanced

Categorical Exclusion

22 CFR 216.2

(c)(2)(i), (iii), (v) and (xiv)

2 Deferrals must be cleared through an Amendment to this IEE prior to implementation of any deferred activities.

1 Positive Determinations require preparation of a Scoping Statement and Environmental Assessment.

Objective 1a: Business Enabling Environment Improved

Objective 1b: Inter-LGU Coordination and Connectivity Strengthened

Categorical Exclusion

22 CFR 216.2

(c)(2)(i), (iii), (v) and (xiv)

Objective 2: Public Service Delivery Improved

Objective 2a: Public Financial Management Strengthened

Objective 2b: Strengthen Local Education and Health Boards

Categorical Exclusion

22 CFR 216.2

(c)(2)(i), (iii), (v) and (xiv)

Objective 2b:

E-government Solutions Advanced

Categorical Exclusion

22 CFR 216.2

(c)(2)(i), (iii), (v) and (xiv)

X

Cross-cutting objectives Categorical Exclusion

22 CFR 216.2

(c)(2)(i), (iii), (v) and (xiv)

X

Program support Categorical Exclusion

22 CFR 216.2

(c)(2)(i), (iii), (v) and (xiv)

As a general background, cities are the drivers of economic growth, employment generation and improved quality of life. Cities are also centers for learning and innovation, entrepreneurship, market opportunities, and infrastructure development. Rapid economic growth is usually associated with urbanization as labor moves from the rural-agricultural sector to urban-centered industry and services.

Agglomeration and scale economies, as proximity and density reduce the per capita costs of providing infrastructure and services, as well as creating knowledge spillovers and specialization is also associated with the growth of cities. Urban living is linked with higher levels of literacy and education, better health, lower fertility and a longer life expectancy, enhanced opportunities for cultural and political participation and, overall, a better quality of life.

However, urbanization has already led to increasing demands on local governments often straining their capacity to respond. As urban populations grow, there are increasing pressures on the city’s food security, housing, land use, water and sanitation, and public transport among others. The benefits from urbanization are often uneven. Many urban residents, particularly the urban poor, lack access to basic services and infrastructure, such as safe and accessible drinking water, education, and health care as well as face problems of congestion, mobility, sanitation, and waste collection. Problems of equal access, resilience, productivity and sustainability, to name a few, often lead to uneven development and can constrain long-term growth. Given the high concentration of population and economic activities in urban areas, cities have become particularly vulnerable to the COVID-19 pandemic. How cities cope with COVID impacts in areas such as pandemic response and recovery and vaccine distribution and logistics as well as local governance, transport and mobility, socio-economic conditions, environmental quality and urban design, in general, will be also important to consider. The Implementing Partner will furnish all personnel, materials, equipment, supplies, facilities, services and perform all activities necessary for, or incidental to, the performance of work to accomplish the tasks below:

Objective 1: Local economic development enhanced

As urban populations continue to grow, there is growing demand for cities to attract more investment, generate jobs and increase incomes. Many LGUs have sought to promote local economic development but very often lacked information and technical expertise on how to effectively implement them or how to scale these projects. Many local initiatives in industry development tended to be alike, particularly in locations that were similarly endowed. Moreover, increasing urbanization has given rise to issues, such as traffic and infrastructure development, that transcend local boundaries and impact on economic growth of cities. Growing urban populations have led to spill-over effects to neighboring localities and created the development of peri-urban areas. At the same time, these adjacent municipalities perform a support economic role to the urban core, thus creating a broader growth corridor. Economies of scale, economic interdependence, and externalities are now major considerations in urban planning. Shared concerns such as in the areas of development planning, infrastructure development, food security and transport and traffic management are some of the areas of possible assistance.

Objective 1a: Business enabling environment improved

This activity will assist partner CDI cities to plan, finance, execute and sustain local economic development (LED) agenda/strategies into workable programs, projects, services. Technical assistance will focus on strengthening the formulation and implementation of a local economic development agenda, internal and external standards and processes, and organizational and human resource capacity. This activity will also assist city governments, in partnership with the private sector and other non-government stakeholders, to improve the enabling environment needed to attract investment and generate jobs.

Institutional strengthening of LGU units in advancing LED may involve the local planning and development office, the business and construction permitting office, engineering and construction permitting office, the local investment promotions office, land and asset management office and other relevant offices. As economic activity spills over multiple jurisdictions (Task 1b), activities under this Task are envisaged to also cover relevant adjacent municipalities, together with the primary target cities.

Objective 1b: Inter-LGU coordination and connectivity strengthened

The Urban Connect activity will also support the establishment and operation of these horizontal and vertical coordination mechanisms to reduce administrative fragmentation and foster institutional cohesion in areas of common concern. Area‐wide institutional arrangements and projects will allow participating

LGUs to realize economies of scale; optimize urban-rural economic linkages and product and service value chains, exchange information and share experiences; act in concert in advocating their common interests; better network and cluster work; pool resources and expertise for the benefit of less developed and capacity constrained weaker LGUs; and address the impacts that transcend local jurisdictions. This activity will also strengthen collaboration or partnerships between the LGU and non-government or private sector institutions operating in the locality, such as business groups, industry and trade groups, education and training institutions, health care providers, cooperatives and other community and peoples’ organizations in support of LED.

Illustrative activities:

● Support for business enabling measures, including automation and automation of business services

● Support for investment planning and promotion

● Support partnerships with local universities and think tanks

● Support for metropolitan arrangements and other coordinative mechanisms to address inter-jurisdiction concerns

● Support for local chambers of commerce and engagement of the private sector

● Support in facilitating value chain development within the larger economic growth corridor

● Support for private sector engagement in the health care provider network

● Support for LGU participation in the integration of local health systems under the Universal Health

Care (UHC) Law

Intended outcomes over life of project:

● 20% increase in number of registered businesses

● $20 million in new investment in targeted cities as a result of USAID assistance

● Number of private sector partners engaged to support targeted activities

● Value (in USD) leveraged from private sector partnerships due to USG assistance

● Improved overall performance in the Cities and Municipalities Competitiveness Index (CMCI) (city and province)

Objective 2: Public service delivery improved

Recently, the Supreme Court ruled to mandate a higher internal revenue allotment (IRA) share of local government units (LGUs). Under the so-called Mandanas ruling, financial resources available to LGUs will dramatically expand and, as indicated by the central government, additional mandates delegated to them thereby adding more pressure on the already limited capacity of city governments. LGU financial systems are characterized by high dependence on transfers from the central government or so-called internal revenue allotments, low levels of local revenue generation and weak revenue administration, lack of taxpayer and asset information, and poor budget planning and monitoring. There is significant variation in the form and content of local public finance reporting and vertical linkages between planning and budgeting are generally weak. Weak PFM systems constrain the ability of CDI cities to invest in infrastructure and deliver high quality services.

Objective 2a. Public financial management strengthened

This activity will strengthen the capacity of CDI partners in PFM areas of revenue administration and expenditure management. There is a significant body of rulings, issuances, and guidelines from the national government to support good financial management at local levels. This activity will support better compliance in operational budgeting, sectoral investment planning, cash programming, management of liabilities, timely financial reporting, and effective enforcement and financial and other relevant internal controls. Local budget and planning officers’ competencies will be upgraded and technology and digital solutions introduced. This activity will also provide technical support to improve budget planning, execution, reporting and oversight, including the use of the Special Education Fund and the School Improvement Plan (SIP), the Special Health Fund, disaster risk reduction and management funds, national government funds under Unified Resource Allocation Framework, government and private financing and Performance Challenge Fund, among others. Improving capacity in policy formulation and coordination, project management and procurement will also be supported.

Objective 2b: E-government solutions advanced

This activity will also support city efforts to enhance the adoption of e-government solutions to improve public service delivery. These include efforts at Smart government aimed at improving transparency, access to information, streamline processes, and reducing red tape . For instance, several cities have set3 up on-line permit and licensing systems, land information systems and e-payments for property taxes and other local fees. Smart solutions are also being developed to address traffic congestion and transport mobility; pollution and environmental resilience; disaster preparedness; public safety and health; water service delivery and utility operations (e.g. billing and collection) including non-revenue water management and water demand management; and local workforce development. Areas of accelerated ICT deployment for local governments could include new digital innovations for operations automation and constituent-centric digital services, digital healthcare, health information systems, and social welfare, e-learning and technology-enabled workforce development, cybersecurity, emergency communications and disaster preparedness.

Objective 2c: Strengthen local education and health boards

Urban Connect will strengthen the capacity of local school boards and the local health boards to carry out their mandates. The aim is to make these local boards functional consistent with the devolution of responsibilities and improve the delivery of education and health services in these localities based on local demand, institutional capacities and financial capability. This will include strengthening the boards’ oversight capacity over the Special Education Fund and the Special Health Fund to meet the supplementary needs of the local public school and public health systems. This activity will assist the local boards identify and set local educational and health priorities and promote locally-led education and health reforms through improved coordination and stakeholder consultations.

Illustrative activities

● Monitoring use of the Special Education Fund

● Strengthening information systems for Local School Boards and School Governing Councils.

● Conduct of hydrologic studies to improve sustainable management of water resources

● Developing technology-based solutions for water utilities or city governments

● Support the establishment of the Special health fund under the UHC Law

Intended outcomes

● Improved performance in Public Expenditure and Financial Accountability (PEFA) assessment

● Improved performance in Public Finance Management Assessment Tool

● Increase in local revenue collection rates

● Improved utilization of Special Education Fund

● Number of local government units using internet (by publicly accessible websites) to deliver public services

3 In June 2020, the DICT launched its smart cities program called “Digital Cities 2025: A Brighter Future Awaits in the Countryside” which aims to support 25 cities around the country.

● Number of local government processes transacted or delivered on-line

● Number of selected Internet-based services available to citizens, by level of sophistication of service

● Increased public satisfaction with local government service delivery (survey)

● Improved water and/or sanitation efficiency and sustainability service delivery

● Number of LGUs with stronger financial and political commitment to ARH and TB outcomes

● Number of LGUs with operational Special Health Fund

Cross-cutting objectives

As a cross-cutting objective, private sector engagement will be a core approach of Urban Connect. This activity will leverage private sector resources for greater development impact to supplement limited USAID funds as well as to access specialized technologies, knowledge and expertise of the business sector. Urban Connect will build on the relationships developed and supported under the SURGE activity with local chambers of commerce, industry associations, academe and other civil society organizations.

This activity will ensure that urban planning, policies, and programs in the process of redesigning and redeveloping urban areas be more gender-sensitive, inclusive, and responsive to community needs.

Specific design and policy decisions should reflect gender considerations and are appropriate for other underrepresented groups and individuals. The Offeror is required to identify and outline any potential gender and social inclusion issues that might be encountered during project implementation and how these issues will be addressed. Specific interventions should be identified that will benefit women-owned and those owned by persons with disabilities enterprises and businesses and that women and disabled persons are not unduly harmed by urban development. The activity will support local governments to formulate and effectively implement their respective gender and social inclusion plans.

The Philippines is classified as highly vulnerable to the impacts of climate change. This means that there is a high degree of risk arising from extreme weather events and climate-related disasters. This activity will increase the resilience of selected CDI cities to near- and long-term impacts of climate change, health pandemic and other natural disasters by building capacity for preventing or mitigating disaster/ climate and pandemic impacts, conducting post-disaster rehabilitation and recovery measures, and as appropriate, mitigate climate change. The Implementing Partner must integrate climate resilience and risk management and disaster preparedness measures to improve effectiveness and sustainability of Urban Connect’s efforts (USAID ADS201mal).

C.4.b. Program Support

The Implementing Partner will provide program support and coordination services to facilitate coordination and monitoring/learning of USAID activities in the partner cities covering the activities below:

Activity 1: Provide program and coordination support for USAID in pursuit of CDI objectives

The Implementing Partner will facilitate monitoring and representation visits of USAID and other U.S.

Government (USG) officials and staff, such as provision or arrangement of local transportation, hotel and accommodation reservations, local security arrangements when necessary, and setting up appointments with local stakeholders in CDI sites. The Implementing Partner will also provide administrative support to USAID/Philippines staff in organizing meetings, workshops, and high-level events with city officials and other local stakeholders in CDI sites. This will include venue arrangements and providing secretarial support and documentation assistance.

Activity 2: Supporting Collaboration, Learning and Adapting (CLA) activities in CDI

The Implementing Partner will develop and implement a Collaborating, Learning and Adapting (CLA) plan for the Urban Connect activity and CDI approach as a whole. The CLA plan must demonstrate the extent to which collaborating, learning, and adapting will be integrated in activity/project implementation to better achieve outcomes and results. The plan must articulate how CLA principles and practices will be carried out throughout the life of the project, including involvement of stakeholders, timing and goals of pause-and-reflect sessions, and how the project will incorporate learnings in CDI. The Offeror may refer to https://usaidlearninglab.org/cla-toolkit for additional guidance. While the CLA initiatives envisioned will address particular collaboration, learning and adapting challenges and opportunities of both Urban Connect and CDI, synergies and complementation with the on-going CLAimDev Activity will be explored.

To optimize investments in each sector, and to create synergy among the different activities being implemented in CDI sites, a coordinated approach to CLA must be implemented. These include:

a. Leading the organization of annual or semi-annual Mission-wide CLA dialogues which bring together USAID and implementing partners who are active in CDI sites to share information.

These meetings can be organized around key themes that reflect the most pressing challenges or issues, or as a venue to share findings from studies or reports generated by USAID activities.

This can be in collaboration with the Mission CLA for Improved Development (CLAImDev) Activity.

b. Leading the organization of an annual conference that brings together USAID, CDI partners (local government units, national government agencies, the private sector, academia, civil society, and others such as the international development community) to share their experiences more broadly, and to provide strategic guidance on the implementation of activities under the different scope of objectives of Urban Connect. This can tie into annual implementation plan development for Urban Connect.

The Implementing Partner will also develop and implement a CDI Information and Communications Plan (ICP), nested under the Branding and Marking Plan highlighting CDI as a whole-of-government approach to development in the partner cities. will include production of promotional and information materials, such as pamphlets, brochures, videos, and mainstream and social media outreach activities for each partner city, as well as materials that communicates CDI-wide information on activities, outputs and impact. This includes a semi-annual or quarterly newsletter to highlight CDI events and activities to be disseminated to local and national stakeholders. This may also include arranging press coverage for USAID or Embassy-related events. The Implementing Partner will appoint a CDI coordinator for each partner-city who will serve as the main point of contact for CDI matters, act as a liaison between the local stakeholders and USAID (and its activities) and manage a city calendar of events for USAID.

C.5. CLIN02

C.5.a. Supplemental task orders

In this second CLIN, the Implementing Partner will respond to government‐issued task orders from USAID to up to $3 million over the life of the project to address specific technical areas that impact the achievement of Urban Connect’s goal and objectives or support new activities that could enhance this activity’s results. The Implementing Partner is expected to provide additional supplemental technical assistance that may include interventions in economic growth, education, environment, post-disaster rehabilitation, public health, water, sanitation, and hygiene, water resource management, ocean plastic reduction/solid waste management and local governance deemed to strengthen, scale or complement the outcomes of this activity. The Implementing Partner will be responsible for implementing and monitoring this CLIN including supervising the procurement of necessary technical expertise and other required services or commodities. The Implementing Partner will assume contract management, financial administration, monitoring and reporting of these activities.

C.5.b. Grants management

The Implementing Partner will also be expected to administer and execute multiple small grants valued at $800,000 over the life of the project. The purpose of the GUC component is to extend resources to local non- government organizations and entities, including academic institutions, private sector organizations, civil society organizations, and other private enterprises whose participation is deemed crucial in achieving project goals and objectives. The GUC may be used in any of the, or across all components of Urban Connect and could include a wide array of technical assistance activities, including but not limited to technical studies, capacity building, coalition building, reform advocacy, public outreach, and policy development. GUC activities are also a potential source of technological innovations that could help improve project outcomes. Additionally, grant recipients could help build networks and linkages among diverse actors and stakeholders of Urban Connect. The Implementing Partner will work with USAID in establishing the selection criteria for the grants and approval of the grant recipients.

2.0 BASELINE ENVIRONMENTAL INFORMATION

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT, PHYSICAL,

CLIMATE, SOCIAL)

Presidential Decree No. 1586, issued on June 11, 1978, established the Philippine Environmental Impact Statement (EIS) System while Presidential Proclamation No. 2146 defined its scope and Administrative Order No. 2003-30 of the Department of Environment and Natural Resources provided the implementing rules and regulations.

The EIS System is concerned primarily with assessing the significant impacts of a project on the environment and ensuring that these impacts are addressed by appropriate measures. The EIS System requires all project proponents to prepare an environmental impact assessment (EIA) for any activity that substantially affects the quality of the environment. The EIA should be environmentally conscious, technically sound, and socially acceptable. By being so, the EIS system will not only regulate industrial pollution but also protect natural resources, fragile ecosystems, and the rights of local communities. More than a regulatory scheme, the EIS System is a comprehensive planning and management tool as well. The Environment Management Bureau, a line bureau of the Department of Environment and Natural Resources (DENR), is the agency responsible for policy development and review as well as monitoring the implementation of EIA-related laws.

The Philippines is also signatory to several international environmental agreements such as the Agenda 21(on Sustainable Development), and Rio Declaration on Environment and Development, United Nations Framework Convention on Climate Change, Hyogo Framework of Action, Convention on Biological Diversity, Convention on International Trade in Endangered Species of Wild Fauna and Flora, and International Tropical Timber Agreement. As a signatory, the Philippines commits itself to the principle of sustainable development, climate change adaptation, disaster risk reduction and management, biodiversity conservation, sustainable forest management, watershed management.

International commitments are supported by national efforts to enact environmental laws and policies.

Foremost of these is the Climate Change Act (CCA) of 2009, which promotes the principles of subsidiarity (LGUs to serve as frontline agencies to address climate change at the local level) and multi-stakeholder participation and partnerships. The Disaster Risk Reduction (DRR) and Management Law, passed in

2010, encourages disaster risk prevention and mitigation and establishes the synergies between CCA and DRR. Other relevant laws, which may provide bases for pursuing adaptation in critical sectors include: the National Water Code, the Philippine Clean Water Act, Agriculture and Fisheries Modernization Act, the Revised Forestry Code of the Philippines, Executive Order 263 (Community-based Forest Management), and the National Integrated Protected Areas System.

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK

While development activities are intended to provide benefits for targeted recipients, when managed ineffectively they may cause adverse impacts that can offset or eliminate these intended benefits. Impacts can be direct, indirect, or cumulative. They can also be beneficial or negative. The USAID Sector environmental guidelines are good resources in finding more information on potential impacts for various sectors. The following link is to all sector guidelines: http://www.usaidgems.org/sectorGuidelines.htm. The following are summaries of potential environmental impacts for respective sector(s) that are related to the scope of this IEE.

Disasters There are some instances in which disaster circumstances may make it impossible to conduct environmental review prior to undertaking certain urgent activities. The exemption in 22 C.F.R. § 216.2(b)(1) is intended to cover these kinds of scenarios.

Because of the importance of environmental review, the Agency intends for the international disaster assistance exemption to be applied only:

• To activities funded out of the International Disaster Assistance (IDA) appropriation account or,

• For non-IDA funded activities, - On a temporary basis, and - In those very limited situations in which prior environmental review requirements would otherwise stand in the way of activities to save lives or otherwise avert imminent disaster-related threats.

The exemption should only be invoked for non-IDA-funded activities temporarily for short periods of time when absolutely necessary, with initial environmental examination (potentially leading to environmental assessment or rapid environmental assessment) for later anticipated longer term needs beginning within one to three months and concurrently with the disaster response. In addition, all Agency operating units are expected to work with their Bureau Environmental Officers to establish applicable advance environmental review mechanisms, such as programmatic initial environmental examinations, for anticipated disaster response activities, in order to minimize the need to invoke the exemption.

Activities that are not exempt should apply the best practices outlined in Chapter 10: Humanitarian Response and Natural Disasters found at the following website:

https://usaidgems.org/Sectors/hrda.htm.

4.0 ENVIRONMENTAL DETERMINATIONS

4.1 RECOMMENDED ENVIRONMENTAL DETERMINATIONS

The following summarizes the recommended determinations based on the environmental analysis conducted. Upon approval, these determinations become affirmed, per 22 CFR 216. Specified conditions, in this section and detailed in Section 5, become mandatory obligations of implementation, per ADS 204.

Justification for Categorical Exclusion Request

Some of the activities described justify Categorical Exclusions, pursuant to 22 CFR 216.2(c)(1) and (2), for which an Initial Environmental Examination, or an Environmental Assessment are not required because the actions do not have an effect on the natural or physical environment.

Specifically, as currently planned, these activities fall into the following classes of action:

- Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.)

- Analyses, studies, academic or research workshops and meetings

- Document and information transfers

Negative Determination with Conditions

Activities with potential impacts to the environment under the following sectors are recommended for a Negative Determination with Conditions threshold determination. When implemented ineffectively these activities may cause adverse impacts that can offset or eliminate the intended benefits. Mitigating environmental impacts with these activities requires a participatory approach to activity/program design and management. Strong technical design of the projects is also critical. The following are specific conditions to mitigate the potential negative impacts for respective sectors.

Water System Facilities If the Task Order under Urban Connect activity is tapped for disaster response and rehabilitation, e.g., water system facilities, the Implementing Partner must follow environmentally sound practices as outlined in the USAID Sector Environmental Guidelines – Water Supply and Sanitation. This document can be found at: http://www.usaidgems.org/Sectors/watsan.htm. The COR will require the preparation of an Environmental Mitigation and Monitoring Plan (EMMP) from the Implementing Partner. The EMMP for this activity must be approved by the COR before implementation water system facilities rehabilitation begins.

4.2 CLIMATE RISK MANAGEMENT

Pursuant to the ADS 201mal, USAID must factor climate resilience into international development programs to the extent allowable by law, assessing and addressing climate risk, as appropriate.

Consistent with ADS 201.3.4.5, if climate risk has not been adequately assessed at the strategy or project level, or if the risk rating was not exclusively determined to be “Low”, climate risk must be assessed, with plans specifying mitigation actions at the activity level. The Climate Risk Screening table summarizes activity-level climate risk management, including programmatic components, identified risk and associated mitigation measures. The implementing partner will implement identified actions during the life-of-project and report back regularly to the activity manager on the status of their implementation, to enable smooth oversight and ensure sustainability of developmental objectives.

Country Profile. According to the Climate Change Risk Profile for the Philippines (USAID, 2017) the Philippines is classified as highly vulnerable to the impacts of climate change, sea level rise, extreme weather events, rising temperature and extreme rainfall. This means that there is a high possibility of extreme weather events to happen. The Philippines is in the Pacific typhoon belt where it experiences an average of 19-20 tropical cyclones, of which, 7 to 9 will make a landfall in a year. Since 2009, the country has experienced destructive typhoons on an almost annual basis. In November 2013, Typhoon Haiyan made landfall in the Philippines as one of the strongest storms on record, equivalent to a Category 5 hurricane, and caused storm surges that led to thousands of deaths and billions of dollars in damage. The same document also reported that the most at risk are the urban poor who live in temporary shelters.

They lack the resources to prevent or mitigate the threat of coastal inundation and storm surge. The Philippines’ vulnerability to typhoons is worsened by sea-level rise that affects its vast coastline and by its dependence on climate-sensitive natural resources. The country’s climate is tropical and maritime with mean annual temperatures of 25°C throughout the year. It is characterized by relatively high temperature and humidity and abundant rainfall. The month of May has historically been the warmest month with a mean temperature of 28.3°C and the coolest month falls in the month of January with a mean temperature of 25.5°C. Rainfall patterns exhibit high variability from year to year, but typically range from 965 mm/year in southeast Mindanao to over 4,064 mm/year in central Luzon. Rainfall is governed by the southwest monsoons from June-August and by the northeast monsoons from December-February. El Niño events are generally associated with reduced rainfall and weakened typhoon activity and La Niña events with increased heavy rainfall and increased typhoon activity.

Assessment of Climate Risks. The Activity Design Team conducted a climate risk screening and assessment using USAID’s Climate Risk Screening and Management Tool. The risks were assessed and evaluated as “low” and “moderate.” The rating of “low” is given since there are some climate change risks that are unlikely to materially affect the achievement or sustainability of the Activity outcomes. While the “moderate” climate risk indicates that climate change may materially impact achievement or sustainability of the Activity outcomes.

Illustrative activities under the Urban Connect activity may include but are not limited to technical assistance, capacity building, training, conduct of studies, policy formulation among others. The impacts of the changes in temperature and extreme weather events may only suspend the conduct of the activities for short- to medium- term period depending on the effectiveness of the Activity’s CRM Plan and the implementing partner’s implementation and monitoring of the plan.

Addressing of Climate Risks. Following the assessment and analysis, the Urban Connect will integrate risk management measures to address the identified climate change risks. These measures will be considered in the design, implementation, and management of the activities under the Activity. The CRM measures will include:

● Ensure that appropriate and relevant climate change information is included in the design,

● co-design with stakeholder partners, solicitation and procurement and award.

● Support local-development activities and interventions that can help preserve the country’s natural resources.

● Include climate data and information in capacity building and training modules.

● The Activity Team, in coordination with the MEO and Climate Integration Lead (CIL), will review the mechanisms’ environmental policy and procedures and provide assistance, as needed.

● Climate proofing measures during the life of the activities will be implemented and documented through the CRM section of the Annual Work Plan.

● All CRM monitoring reports and updates will form part of the quarterly and annual progress reports of each implementing mechanisms.

Table 2: Climate Risk Screening and Assessment Tasks / Defined or

Illustrative Interventions

Climate Risks Risk Rating How Risks are Addressed Opportunities to Strengthen

Climate Resilience

Obj.1: Local Economic

Development Enhanced

Obj. 1a: Business Enabling

Environment Improved

Reduced training or capacity building attendance due to disruption and/or damage caused by extreme weather events (floods, droughts, extreme heat)

Low to

Moderate

Risk

Ensure that appropriate and relevant climate change information is included in the design, solicitation and procurement and award.

Collaborate with stakeholders and Philippine Government resource agencies to utilize available and quality climate, weather resource data/ information for work planning

Obj. 1b: Inter-LGU

Coordination and

Connectivity Strengthened

Reduced training or capacity building attendance due to disruption and/or damage caused by extreme weather events (floods, droughts, extreme heat)

Infrastructure for trade and investment, mobility, and basic services (water, sanitation, schools, health centers, etc.) may all be damaged or disrupted by a variety of climate stressors

Low to

Moderate

Risk

Ensure that appropriate and relevant climate change information is included in the design, solicitation and procurement and award.

Include climate data and information in capacity building and coordination modules. Conduct and/ or refer to climate vulnerability assessment or information to ensure resilience of this activity.

Collaborate with stakeholders and Philippine Government resource agencies to utilize available and quality climate, weather resource data/ information for work planning

Obj. 2: Public Service

Delivery Improved

Obj.2a: Public Financial

Management

Strengthened

Subnational budgets strained by the need to repeatedly allocate funds for disaster preparedness and recovery

Damage to public service (e.g., education, health, etc) materials and facilities from floods caused by heavy rainfall and storm

Moderate

Risk

Ensure that appropriate and relevant climate change information is included in the design, solicitation and procurement and award.

Include climate data and information in capacity building and coordination modules.

Collaborate with stakeholders and Philippine Government resource agencies to utilize available and quality climate, weather resource data/ information for work planning

Obj. 2b: E-government

Solutions Advanced

Electronic payment system may be disrupted due to extreme weather event incidence. This may lead to disturbance of basic service delivery to the public.

Reduced training or capacity building attendance due to disruption and/or damage caused by extreme weather events (floods, droughts, extreme heat)

Moderate

Risk

Ensure that appropriate and relevant climate change information is included in the design, solicitation and procurement and award.

Include climate data and information in capacity building and coordination modules. Conduct and/ or refer to climate vulnerability assessment or information to ensure resilience of this activity.

Collaborate with stakeholders and Philippine Government resource agencies to utilize available and quality climate, weather resource data/ information for work planning

Obj. 2c.: Strengthen local education and health boards

Disruptions in education and health systems strengthening activities (e.g., monitoring, training, coaching, documentation) as well as in health service delivery due to extreme weather events

Increased challenges with surveillance, diagnostic, and

Low to

Moderate

Risk

Ensure that appropriate and relevant climate change information is included in the design, solicitation and procurement and award.

Collaborate with stakeholders and Philippine Government resource agencies to utilize available and quality climate, weather resource data/ information for work planning other health systems during and following extreme weather events

Storm and flood damage to health facilities and records as well as disruptions to health care services

Cross-cutting objectives

Program Support

Reduced training or capacity building or learning & evaluation lecture attendance due to disruption and/or damage caused by extreme weather events (floods, droughts, extreme heat)

Low to

Moderate

Risk

Ensure that appropriate and relevant climate change information is included in the design, solicitation and procurement and award.

5.0 CONDITIONS AND MITIGATION MEASURES

5.1 CONDITIONS

The environmental determinations in this IEE are contingent upon full implementation of the following general implementation and monitoring requirements, as well as ADS 204 and other relevant requirements.

5.1.1 During Pre-Award:

5.1.1.1 Solicitations: The design team, in coordination with the CO, will ensure solicitations include environmental compliance requirements and evaluation criteria. CO will ensure technical and cost proposal requirements include approach, staffing, and budget sufficient for complying with the terms of this IEE.

5.1.1.2 Awards: The COR, in coordination with the CO, will ensure all awards and sub-awards, include environmental compliance requirements.

5.1.2 During Post-Award:

5.1.2.1 Post-Award Briefings: The COR and/or the cognizant environmental officer(s) (e.g., MEO, REA, BEO) will provide post-award briefings for the IP on environmental compliance responsibilities.

5.1.2.2 Workplans and Budgeting: The COR will ensure the IP integrates environmental compliance requirements in work plans and budgets to comply with requirements, including EMMP implementation and monitoring.

5.1.2.3 Staffing: The COR, in coordination with the IP, will ensure all awards have staffing capacity to implement environmental compliance requirements.

5.1.2.4 Records Management: The COR will maintain environmental compliance documents in the official project/activity file and upload records to the designated USAID environmental compliance database system.

5.1.2.6 Work Plan Review: The COR will ensure the IP verifies, at least annually or when activities are added or modified, that activities remain within the scope of the IEE.

Activities outside of the scope of the IEE cannot be implemented until the IEE is amended.

5.1.2.5 Host Country Environmental Compliance: The COR will ensure the IP complies with applicable and appropriate host country environmental requirements unless otherwise directed in writing by USAID. However, in the case of a conflict between the host country and USAID requirements, USAID’s regulations shall rule.

5.1.2.7 IEE Amendment: If new activities are introduced or other changes to the scope of this IEE occur, an IEE Amendment will be required.

5.1.2.8 USAID Monitoring Oversight: The COR or designee, with the support of the cognizant environmental officer(s) (e.g., MEO, REA, BEO), will ensure monitoring of compliance with established requirements (e.g., by desktop reviews, site visits, etc.).

5.1.2.9 Environmental Compliance Mitigation and Monitoring Plan: The COR will ensure the IP develops, obtains approval for, and implements Environmental Mitigation and Monitoring Plans (EMMPs) that are responsive to the stipulated environmental compliance requirements.

5.1.2.10 Environmental Compliance Reporting: The COR will ensure the IP includes environmental compliance in regular project/activity reports, using indicators as appropriate; develops and submits the Environmental Mitigation and Monitoring Reports (EMMRs); and completes and submits a Record of Compliance (RoC) describing their implementation of EMMP requirements in conjunction with the final EMMR or at the close of sub activities (as applicable). And where required by Bureaus or Missions, ensure the IP prepares a closeout plan consistent with contract documentation for A/COR review and approval that outlines responsibilities for end-of-project operation, the transition of other operational responsibilities, and final EMMR with lessons learned.

5.1.2.11 Corrective Action: When noncompliance or unforeseen impacts are identified, IPs notify the COR, place a hold on activities, take corrective action, and report on the effectiveness of corrective actions. The COR initiates the corrective action process and ensures the IP completes and documents their activities. Where required by Bureaus or Missions, ensure Record of Compliance is completed.

5.2 MITIGATION MEASURES

The mitigation measures presented in this section constitute the minimum required based on available information at the time of this IEE and the environmental analysis in Section 4. These measures shall provide general direction for completing the activity’s Environmental Mitigation and Monitoring Plan (EMMP) and/or the EA and Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP), if required. The implementing partner is expected to identify and implement specific mitigating measures to be indicated in the EMMP once the details of the Project are available.

On Objective 1: Local Economic Development Enhanced, illustrative activities include support for business enabling measures, including automation including and automation of business services;

support for investment planning and promotion; support partnerships with local universities and think tanks; support for metropolitan arrangements and other coordinative mechanisms to address inter-jurisdiction concerns among others. This will focus on the conduct of training; studies; research;

development of guidelines, tools, and processes; peer-to-peer exchanges and other modalities for learning. The illustrative activities under Objective 1 are categorical exclusions and does not require an EMMP, however, the Activity will ensure that the conduct of these activities comply with environmental standards such as but not limited to paper-less training (if possible), proper disposal of materials, recycling or upcycling of materials as appropriate, and as a form of environmental best practice.

On Objective 2: Public Service Delivery Improved, the illustrative activities under this Task, support improved budgeting and public service delivery through introduction of new processes, development of standards and plans, as well as capacity building of government staff. It also includes promotion of social accountability methods and tools for citizen engagement with the government. This will focus on the conduct of training; studies; research; development of guidelines, tools, and processes; peer-to-peer exchanges and other modalities for learning. The illustrative activities under Objective 1 are categorical exclusions and does not require an EMMP, however, the Activity will ensure that the conduct of these activities comply with environmental standards such as but not limited to paper-less training (if possible), proper disposal of materials, recycling or upcycling of materials as appropriate, and as a form of environmental best practice.

On cross-cutting activities and CLIN 2 of Urban Connect will work on evaluation, coordination, logistics, etc., and may include responding to government‐issued task orders and grants under contract. The latter may include illustrative activities such as formulation of technical studies, plans, and possibly rehabilitation response to disaster.