Attachment_18_-_LAC-IEE-18-19_ETD_&_EA.pdf

TRACKING ID: LAC-IEE-18-19

USAID/COLOMBIA/RURAL ECONOMIC DEVELOPMENT (RED) PROGRAM

IEE AMENDMENT

PROJECT/ACTIVITY DATA

Project/Activity Name: Rural Economic Development (RED) Program Geographic Location(s) (Country/Region): Colombia Amendment (Yes/No), if Yes indicate # (1, 2...): Yes, amendment # 5 Implementation Start/End Dates (FY or M/D/Y): November 1, 2014 to October 1, 2019 If Amended, specify New End Date: NA Solicitation/Contract/Award Number: Various contracts and cooperative agreements related to the rural economic development program under the

DO3

Implementing Partner(s): Various implementing partners related to the rural economic development program under the DO3

Bureau Tracking ID: LAC-IEE-18-19 Tracking ID of Related RCE/IEE: LAC-IEE-15-48 Tracking ID of Other, Related Analyses: LAC-IEE-14-60/LAC-IEE-13-05/LAC-IEE-10-05

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit(s):

(e.g. Mission or Bureau or Office)

USAID/Colombia/Rural Economic Development Office

Other Affected Operating Unit(s): NA Lead BEO Bureau: LAC Funding Operating Unit(s):

(e.g. Mission or Bureau or Office)

USAID/Colombia/Rural Economic Development Office

Funding Account(s) (if available): Various funding accounts related to the rural economic development program under the DO3

Original Funding Amount: $238 million If Amended, specify funding amount: NA If Amended, specify new funding total: NA Prepared by: María Elena Santana Date Prepared: December 19, 2017

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Analysis Type: Initial Environmental Examination Amendment Environmental Determination(s): Categorical Exclusion

Negative Determination Positive Determination

RCE/IEE Expiration Date (if different from implementation end date):

NA

Additional Analyses/Reporting Required:

NA

Climate Risks Identified (#): Low risk Climate Risks Addressed (#): Low risk

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

PROJECT/ACTIVITY SUMMARY

The purpose of this amendment is to change the Positive Determination to a Categorical Exclusion in support of Development Credit Authority (DCA) activities under USAID/Colombia’s Inclusive Rural Economic Growth Project under the PAD of Rural Economic Development (RED) office.

No changes are being made to activities.

ENVIRONMENTAL DETERMINATIONS

Refer to Section 4.0 of the IEE for the Threshold Determinations as amended.

BEO COMMENTS AND SPECIFIED CONDITIONS OF APPROVAL

As LAC BEO, I am concurring with this IEE amendment to change the Threshold Determination for the Colombia Rural Economic Development (RED) Program DCA loan portfolio guarantee (LPG) activities to categorical exclusion (22 CFR 216.2(c)(2)(x)) because this is what is stated in ADS 249.3.4.2.

I reviewed the conditions of this IEE amendment and the DCA agreement requirements, including the qualifying loan criteria, determinations regarding qualifying loans, procedures for removing loans from coverage, and submission of policies and procedures that assure projects are environmentally sound and in compliance. I concur with the Mission that these are sufficient conditions and controls to avoid and/or mitigate significant adverse impacts.

However, I disagree with this Threshold Determination as categorical exclusion paragraph (x) does not apply to this DCA activity because its objective is not to capitalize the credit institution. Also the DCA agreement and this IEE amendment mandate that environmental conditions be applied, which is not consistent with the application of categorical exclusions. Further the notwithstanding language of 216.2(c)(3) may apply because USAID asserts ‘control’ through the conditions of the agreement, as noted above, and by way of this IEE amendment. The Mission has determined that 'control' is required to ensure that the guaranteed loans don't have significant adverse environmental impacts. It becomes a circular argument that controls are necessary to prevent adverse impacts, therefore, the categorical exclusion doesn't apply. In addition, USAID retains the right to review and remove individual loans through conditions in the agreement, which is not consistent with objectives set out in 216.2(c)(1) for categorical exclusions.

My concurrence as BEO is given with the understanding that, regardless of the application of a categorical exclusion, the Mission will ensure that the conditions of this IEE amendment, the DCA agreement, and other relevant requirements are fully implemented and that this DCA activity doesn't result in significant adverse environmental impacts.

IMPLEMENTATION

In accordance with 22CFR216 and Agency policy, the conditions and requirements of this document become mandatory upon approval. Further the conditions and requirements of the original IEE and the other amendments remain in full effect, except as amended by this document.

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1.0 PURPOSE AND SCOPE

The purpose of this amendment is to change the Positive Determination to a Categorical Exclusion in support of Development Credit Authority (DCA) activities under USAID/Colombia’s Inclusive Rural Economic Growth Project under the PAD of Rural Economic Development (RED) office. New information emerged about the rigorous requirements already in place in the Colombian legal framework for financial institutions that we were not aware of before. After further review, the conditions are no longer necessary or appropriate for this DCA activity. Under 22 CFR 216.2(c)(2)(x), a categorical exclusion is available for “support for intermediate credit institutions when the objective is to assist in the capitalization of the institution or part thereof and when such support does not involve reservation of the right to review and approve individual loans made by the institution”.

This amendment is identified as number 5 and includes the Initial Environmental Examination LAC-IEE- 10-05, LAC-IEE-13-05, LAC-IEE-14-60 and LAC-IEE-15-48 which were prepared in accordance with USAID Environmental Procedures 216, ADS Chapter 204 Environmental Procedures and MO# 2011- 02 Environmental Procedures, under the Development Objective No. 3 “Improved conditions for inclusive rural economic growth”, Intermediate Result No. 3.2 “Increased investment in the rural sector” of USAID/Colombia.

It is important to clarify that no new activities are being added in this amendment.

2.0 CERTIFICATION OF COMPLIANCE

● All other aspects of the RED Program and geographic scope remain unchanged from previous environmental analyses.

● Annual Work Plan(s) has/have been verified to undertake only those activities originally proposed, and all reporting requirements have been adhered to and remain unchanged. This program is in compliance.

● There has been no change to the climate risk screening/management of the project in accordance with Mandatory Reference for ADS Chapter 201 on Climate Risk Management for USAID Projects and Activities.

● The other conditions and requirements of earlier IEEs remain in full force.

● The requirements of this amendment become effective upon signing.

3.0 REVISIONS

According to 22 CFR 216.2(c)(2)(x), for DCA activities, there is a need to change the determination of the environmental impacts to a Categorical Exclusion. As per USAID/Colombia Mission policy, in order to have consistent treatment, all existing Loan Portfolio Guarantee DCAs using the standard DCA agreement template will receive a Categorical Exclusion in accordance with 22 CFR 216 and ADS

249.3.4.2. The signed action memo is included in the attachments.

DCA activities must adhere to Colombian law, USAID/Colombia policy, and procedures and provisions for DCAs as per the loan agreement. Safeguards include:

• Financial institutions’ environmental procedures are evaluated as part of the risk assessment conducted by the DCA office.

https://www.usaid.gov/ads/policy/200/201mal https://www.usaid.gov/ads/policy/200/201mal

• The standard DCA includes language at Section 7.01(ii)(b) (b) requiring the Guaranteed Party to submit, as a condition precedent to the effectiveness of the DCA: “A description of the Guaranteed Party’s policies and procedures to assure that projects financed by the Guaranteed Party are environmentally sound and comply with Applicable Law and any USAID specific requirements”.

• Section 2.02(b) of the standard DCA agreement includes a requirement that certain categories of activities, including the use of pesticides and activities that are considered to have a significant effect on the environment under 22 CFR 216.2(d), cannot proceed without prior approval from USAID. Section 2.02(b) of the proposed DCA further states that any approval:

“will be contingent upon the submission by the Guaranteed Party of evidence sufficient to demonstrate compliance with local environmental laws and to enable USAID to make an assessment of the environmental impact of such activities”. Before USAID approves any activity that may have a significant effect on the environment, this IEE will be amended to ensure that all necessary conditions and protections are in place.

• Any potential environmental impact is reviewed during the implementation of the DCA as part of regular monitoring and oversight. If a loan is found to have not complied with the requirements and conditions of the guarantee, USAID will remove the loan from guarantee coverage.

• The Government of Colombia imposes strict environmental licensing requirements on projects that substantially impact the environment. The Ministry of Environment reviews projects and awards environmental licenses to approved projects (licencia ambiental). Financial institutions must verify that proposed projects have the proper licensing, the “licencia ambiental”, prior to approving financing. It is illegal for financial institutions to provide financing to projects that are not properly licensed. Further, the Superintendencia Financiera de Colombia, the banking system regulator, requires that banks maintain internal control systems over risk management and lending activities. Independent auditors evaluate banks’ internal control systems annually, which ensure that banks are complying with internal control requirements.

• As needed, USAID/Colombia may provide training to partner institution’s staff on environmental management and on loan selection criteria. DCA activities are subject to periodic monitoring by the COR/AOR and/or MEO to assure that there is no significant environmental impact and to make sure that the bank understands the environmental criteria in the loan agreement. COR/AOR is responsible for making sure that the DCA activities are implemented in an environmentally sound manner (ADS 204.3.4).

Per ADS 204, it is the responsibility of the USAID A/COR to keep the MEO/REA and BEO informed of any new information or changes in the activity that might require revision of this amendment and environmental determination.

No additional conditions of approval are required.

4.0 SUMMARY OF ENVIRONMENTAL DETERMINATION

As this amendment is identified as number 5, it includes the Initial Environmental Examination LAC-IEE-

10-05, LAC-IEE-13-05, LAC-IEE-14-60 and LAC-IEE-15-48 which were prepared in accordance with USAID Environmental Procedures 216, ADS Chapter 204 Environmental Procedures and MO# 2011- 02 Environmental Procedures, under the Development Objective No. 3 “Improved conditions for inclusive rural economic growth”, Intermediate Result No. 3.2 “Increased investment in the rural sector” of USAID/Colombia.

The narrative below consolidates all the changes to date and highlights amendment # 5:

A Categorical Exclusion is issued for:

a) Strengthening coordination mechanisms that enable civilian-led whole-of-government intervention,

b) Facilitating social services provision (including attention to conflict-affected populations, health and education services) by local governments; these activities do not include activities that result in the production of infectious medical waste or construction debris.

c) Support for the local implementation of national level policies and/or mechanisms affecting the region, i.e., land titling, land restitution, prevention of displacement,

d) Support to create the conditions for return in formerly mined communities, Public Service Providers Strengthening.

e) Activities not expected to have significant impacts on the environment: training;

technical assistance to government and civil society entities and staff; analyses and assessments of issues of concern to specific activities and support for practical research and assessments; technical advisors; office rental and equipment purchases (including computers, software, printers, scanners); logistical support; technical assistance to establish effective communications and media campaigns; preparation, updating or issuance of manuals, studies, surveys, policy documents, or communication pieces for distribution; support to civil society organizations to build institutional capacity;

promotion of and support to civil society networks and think tanks; meetings, roundtables, conferences, workshops, and other fora; payment of salaries;

transportation expenses, policy dialogue; and collection and analysis of data.

f) The Development Credit Authority (DCA) activities to foster private sector development, by increasing access to finance to support rural micro-, small- and medium-size enterprises, business creation, employment, entrepreneurship, and other productive activities in sectors such as services, agriculture, and small scale manufacturing, particularly of textiles and other artisanal products. Targeted populations include rural producers, victims of the conflict, displaced populations, women victims of gender-based violence, people with disabilities, Afro Colombians, Indigenous, among others. The geographic scope will be defined based on the Rural Economic Development Office (RED) portfolio.

Per 22 Code of Federal Regulations, Part 216.2(c)(2):

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

(iii) Analyses, studies, academic or research workshops and meetings;

(viii) Programs involving nutrition, health care or population and family planning services except to the extent designed to include activities directly affecting the environment (such as construction of facilities, water supply systems, waste water treatment, etc.);

(x) Support for intermediate credit institutions when the objective is to assist in the capitalization of the institution or part thereof and when such support does not involve reservation of the right to review and approve individual loans made by the institution.

Additionally, ADS 249.3.4.2 specifies: “loan portfolio guarantees made by USAID without the right to approve individual loans qualify for the categorical exclusion set forth in 22 CFR 216.2(c)(2)(x) and consequently are not subject to the general procedures contained in 22 CFR 216.3 unless an individual loan guarantee is determined by GC to be subject to the control of USAID and “have a significant effect on the environment” as described in 22 CFR 216.2(c)(3). USAID does not have the right to approve individual loans in the proposed DCA loan portfolio guarantees.

Additionally, as described below, the DCA agreements will require prior approval from USAID for any activities that might have a significant effect on the environment. The Mission Environmental Officer (MEO) and the Contracting Officer's Representative - COR/ Agreement Officer's Representative AOR will oversee the implementation of appropriate environmental guidelines. Reports on these matters will be submitted by the Mission to LAC/BEO in Washington periodically.

(xiv) Studies, projects or programs intended to develop the capability of recipient countries to engage in development planning;

(xv) Studies, projects or programs intended to develop the capability of recipient countries to engage in development planning, except to the extent designed to result in activities directly affecting the environment (such as construction of facilities, etc.).

A Negative Determination with conditions is issued for:

a) Activities of small-scale infrastructure, rural road improvement, small-scale construction, small water and sanitation systems, housing, renewable energy, tertiary roads, electrification, and health and education facilities. Conditions for these activities include following:

i. Use of and application of USAID Environmental Guidelines for Development

Activities in LAC; reference the following URL.

ii. The Mission Environmental Officer (MEO), COTR/AOTR, and contractor(s) will oversee the use of these Guidelines and their implementation.

iii. Reports on Guideline implementation will be submitted by the MEO to the

LAC/BEO on an annual basis.

iv. There is not clear demarcation between “small-scale” construction (including:

infrastructure, energy, rural road reconstruction, and housing developments) and those classified as “mid- to large-scale”. Generally, large-scale construction activities are not difficult to identify in terms of the need for an Environmental Assessment (EA). For all construction/enery activities that fall into the “gray area” between small-scale and mid- to large-scale, the MEO, in coordination with the REA/SA, will review all such activities and decide on one of two potential courses of action: (1) application of environmental guidelines through the SIGA tool, or

(2) completion of an EA (ref. 22 CFR 216.6).

b) Activities of agricultural producing and processing the products mentioned in the following listing in English and attached list of Environmental Guidelines for the Mission in Spanish. The condition is that the mentioned guidelines will be fully used and applied in the implementation of these activities. The MEO, COTRs (or AOTRs if one or more of the CELIs will be implemented through grant awards rather than through contracts) and contractor(s) will oversee the implementation and use of these guidelines. Reports on these matters will be submitted by the MEO to the LAC/BEO on an annual basis.

Environmental Guidelines contained within the on-line Monitor tool (password protected; no public access):

o Forest management:

Forest Management Plan - Rio Chagui Forest Management Plan - Chigorodo & Mutata Forest Management Plan - Alto Guapi Forest Management Plan - Rio Mejicano Forest Management Plan - plantations in Cauca Forest Management Plan - Rio Rosario Forest Management Plan - Villagarzon o Crop best Management practices:

Organic cacao Organic coffee Organic castor oil (higuerilla) o Completed EAs; to be used as guidelines/references:

Cacao EA Rubber (caucho) environmental management plan;

“Colombia Foresta” forest management EA;

Passion fruit (maracuya) EA;

African palm EA;

“Palmito” (heart of palm) EA;

Silvo-pastoral EA;

Yuca EA;

African palm oil extraction plant EA.

o Environmental guidelines for productive activities:

General agricultural activities;

Annual, subsistence crops;

Permanent crops;

Minor species crops Agroforestry & Silvo-pastoral systems;

Fruit tree plantations;

Extensive cattle management;

Large-scale agricultural activities;

Plantations of non-fruit species;

Non-timber forest products extraction from forests;

Fish farming;

Forest plantations;

Small-farm processing of agricultural products.

o Infrastructure environmental guidelines:

Rehabilitation of rural roads G. Keller/J. Sherar Rural Roads Handbook Reconstruction of small-scale infrastructure.

o USAID/LAC Environmental Guidelines:

Agricultural management, including waste management;

Agroforestry Food crop processing;

Rural roads;

Small-scale construction;

Solid waste disposal; residential, commercial, & industrial;

Ecotourism;

Small-scale electric production;

Renewable energy production;

Forestry sector Forest management;

Infrastructure Irrigation and drainage;

Brick production;

Small-scale busineses;

Small-scale mining;

Integrated pest management;

Small-scale tannery management;

Micro and small-scale businesses;

Reforestation;

Riparian area protection/management;

Infectious waste management from health clinics Potable and waste water management;

Soil and water conservation;

Textile management;

Housing management.

o Colombian Ministry of Environment environmental guidelines:

Cotton;

Sugar production Banana production;

Slaughthouses (cattle);

Coffee betterment and production;

Open-pit coal mining;

Coal-fired electric production;

Coal exploration;

Underground coal production;

Pork/swine production;

Cut flower production;

Horticulture/fruit culture production;

Oil palm management;

Brown sugar (panela) production;

Coal export port management Management of infectious wastes from health clinics;

Solid waste management.

c) Use of pesticides will comply with USAID/Colombia's Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP). The MEO, COTRs/AOTRs and contractor(s) will oversee the implementation of the PEA, EAs, and PERSUAP.

A Positive Determination is issued for:

a) Production and processing of agricultural projects not addressed by the Mission's PERSUAP, and for other infrastructure, and/or industrial projects that may cause significant environmental impacts.

b) Activities related to land restitution, land formalization and rural development that may cause significant environmental impacts, including:

i. Support to the GOC’s legal framework in regularization of land tenure and property rights.

ii. Support to the GOC in piloting methodologies for massive land titling, recovery of state lands, adjustment of legal frameworks related to land policy implementation.

iii. Support to the GOC to monitor and evaluate its land policy implementation policies.

iv. Support to Departmental and Municipal land use planning.

c) Studies or assessments which could lead to actions that might have an impact on the environment, especially support to preparation for investment in technical assistance in agricultural practices/post-harvest processing and infrastructure. The following are examples of possible activities:

i. Institutional capacity strengthening of producer associations through improved administrative and business practices, budgetary practices, increased market knowledge.

ii. Improved management and use of pesticides, fungicides, etc., through technical assistance and courses or seminars.

iii. Activities that may cause significant environmental impacts.

A primary condition of the above activities is use of USAID/Colombia's Monitor system for all field activities, including agricultural activities employing pesticide use. The MEO will review/approve all `fichas de revisión ambiental" ("mini-Environmental Analyses") prior to any field implementation. Any activity that has the potential for significant adverse environmental impact (if not already covered by an existing EA) will require an EA to be approved by the BEO according to 216.3(2)(iii), 216.3(4), and 216.6.

Additional Responsibilities and Conditions:

• Each activity manager or Contracting (or Agreement) Officer Technical Representative (COTR or AOTR) is responsible for making sure environmental conditions are met (ADS 204.3.4). In addition, COTRs/AOTRs are responsible for ensuring that appropriate environmental guidelines are followed, mitigation measures in the IEE are funded and implemented, and that adequate monitoring and evaluation protocols are in place to ensure implementation of mitigation measures.

• To ensure compliance with the USAID environmental regulation 22 CFR 216, the Implementing

Partner (IP) is responsible for utilizing the Monitor system as instructed by the Mission Environment Officer. The IP shall ensure that appropriate environmental guidelines are followed and that mitigation measures described in the pertinent Threshold Decision for each of these activities are funded and implemented, including any necessary training or capacity building, and adequate monitoring.

• Applicable best management practices can be found in the Environmental Guidelines for

Development available at the following web site: http://www.usaidgems.org/sectorGuidelines.htm, which replace the Environmental Guidelines for Development Activities in Latin America and Caribbean.

• An amendment of this IEE is required for any activity resulting in policy changes that have the potential to affect negatively the environment, large scale irrigation and other activities not yet designed and therefore not described in this document. Any use, or training for the use, of pesticides in other projects listed in this IEE would require a PERSUAP and IEE amendment.

• The MEO, and/or his designee, reserves the right to conduct spot monitoring checks for all of the activities listed in this IEE to ensure that the conditions listed in the IEE, ETD, and subsequent environmental management plans from Monitor are being followed.

• The MEO will determine which potential activities/projects may require the preparation of an

Environmental Assessment. Environmental considerations, including monitoring and training, are integral parts of the Mission's Monitor on-line tool.

• Within the first year of implementation of the four CELIs, the Mission will conduct a complete evaluation of the listed PEA, PERSUAP, and Mission environmental guidelines to determine their effectiveness and recommend any needed changes. This evaluation will be approved by the IVIED, Regional Environmental Advisor, and the LAC/BEO. Additional reports on these matters will be submitted by the Mission to the LAC/BEO on an annual basis.

• The implementing contractor or partner will ensure that all activities conducted under this instrument comply with all relevant ETDs. Also, through its regular performance monitoring and reporting requirements, a section on environmental compliance (e.g. mitigation monitoring results) will be included.

• Language from “Environmental Compliance: Language for Use in Solicitations and Awards – An

Additional Help for ADS Chapter 204” must be included, as appropriate, in award documents (see:

http://www.usaid.gov/policy/ads/200/204sac.pdf). It is the responsibility of the Assistance Objective (AO) Team and/or Contracts/Agreements Officer to ensure that environmental compliance language from the ETD is added to procurement and obligating documents.

5.0 LIMITATIONS OF THIS INITIAL ENVIRONMENTAL

EXAMINATION AMENDEMENT

The determinations recommended in this document apply only to projects/activities and sub-activities http://www.usaidgems.org/sectorGuidelines.htm described herein. Other projects/activities that may arise must be documented in either a separate IEE, an IEE amendment if the activities are within the same project/activity, or other type of environmental compliance document and shall be subject to an environmental analysis within the appropriate documents listed above.

Other than projects/activities determined to have a Positive Threshold Determination, it is confirmed that the projects/activities described herein do not involve actions normally having a significant effect on the environment, including those described in 22CFR216.2(d).

In addition, other than projects/activities determined to have a Positive Threshold Determination and/or a pesticide management plan (PERSUAP), it is confirmed that the projects/activities described herein do not involve any actions listed below. Any of the following actions would require additional environmental analyses and environmental determinations:

• Support project preparation, project feasibility studies, or engineering design for activities listed in §216.2(d)(1);

• Affect endangered and threatened species or their critical habitats per §216.5, FAA 118, FAA 119;

• Provide support to extractive industries (e.g. mining and quarrying) per FAA 117;

• Promote timber harvesting per FAA 117 and 118;

• Lead to new construction, reconstruction, rehabilitation, or renovation work per §216.2(b)(1);

• Support agro-processing or industrial enterprises per §216.1(b)(4);

• Provide support for regulatory permitting per §216.1(b)(2);

• Lead to privatization of industrial facilities or infrastructure with heavily polluted property per

§216.1(b)(4);

• Procure or use genetically engineered organisms per §216.1(b)(1); and/or

• Assist the procurement (including payment in kind, donations, guarantees of credit) or use

(including handling, transport, fuel for transport, storage, mixing, loading, application, clean-up of spray equipment, and disposal) of pesticides or activities involving procurement, transport, use, storage, or disposal of toxic materials. Pesticides cover all insecticides, fungicides, rodenticides, etc.

covered under the Federal Insecticide, Fungicide, and Rodenticide Act per §216.2(e) and §216.3(b).

6.0 REVISIONS

Per 22CFR216.3(a)(9), when ongoing programs are revised to incorporate a change in scope or nature, a determination will be made as to whether such change may have an environmental impact not previously assessed. If so, this IEE will be amended to cover the changes. Per ADS 204, it is the responsibility of the USAID A/COR to keep the MEO/REA and BEO informed of any new information or changes in the activity that might require revision of this environmental analysis and environmental determination.

ATTACHMENTS:

1. USAID/Colombia Mission policy (signed action memo).

2. DCA Template Agreement.

LAC-EA-17-05

ENVIRONMENTAL ASSESSEMENT

PROJECT/ACTIVITY DATA

Project/ Activity Name: Land & Rural Development Program (LRDP) Amendment (Y/N): No Implementation Start/End: July 25, 2013 - July 25, 2018 Solicitation/Contract/Award Number: AID-514-TO-13-00015 Implementing Partner(s): Tetra Tech ARD Geographic Location(s): 6 Departments (57 municipalities) Tracking ID/link: LAC-EA-17-05 Tracking ID/link of Related SS: LAC-SS-17-03 Tracking ID/link of Related IEE: LAC-IEE-15-48 Tracking ID/link of Other, Related Analyses: N/A

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit(s):

(e.g. Mission or Bureau or Office)

USAID/Colombia/RED Office

Funding Operating Unit(s):

(e.g. Mission or Bureau or Office)

USAID/Colombia/RED Office

Funding Account(s): Counter Narcotics Funding Amount: $68.000.000 Amendment Funding Amount:

N/A Amendment Funding Date:

N/A

Other Affected Unit(s): N/A Lead BEO Bureau: Diana Shannon Prepared by: María Elena Santana Date Prepared: 08/10/2017

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Analysis Type: Environmental Assessment Environmental Determination(s): Positive Determination Additional Analyses/Reporting Required: N/A Analysis Expiration Date: July 25, 2018

ENVIRONMENTAL ASSESSEMENT APPROVAL MEMO

PURPOSE AND SCOPE OF THE ENVIRONMENTAL SCOPING STATEMENT

A Positive Threshold Decision was made by the Bureau Environmental Officer for some or all elements of the Land & Rural Development Program (LRDP), under the referenced IEE which were further considered in the referenced Scoping Statement (SS). The purpose of the Environmental Assessment is to provide the Agency and host country decision-makers with a full discussion of significant environmental effects of a proposed action. It includes alternatives which would avoid or minimize adverse effects or enhance the quality of the environment so that the expected benefits of development objectives can be weighed against any adverse impacts upon the human environment or any irreversible or irretrievable commitment of resources.

LRDP is a five-year initiative of the USAID Mission in Colombia that began operating on July 25, 2013.

This Environmental Assessment (EA) seeks to (i) identify eventual direct, indirect, and cumulative impacts of critical activities (referred to as the “Proposed Action”) carried out by LRDP and (ii) present measures to avoid, deter, mitigate, or compensate those impacts. The Assessment is a result of the Environmental Threshold Decision (ETD) LAC-IEE-15-48, issued by USAID for LRDP on September 25, 2015, which replaces a previous ETD, LAC-IEE-13-05, that did not require the Program to prepare an EA for any of its undertakings.

Initially, LRDP’s environmental compliance was governed by ETD LAC-IEE-13-05, issued on November 9, 2012; this document stated that all Program activities would be granted Categorical Exclusions or Negative Determination with Conditions, as defined in Title 22, Part 216 of the CFR. However, on September 25, 2015, USAID issued a new ETD, LAC-IEE-15-48, amending the previous one. This new ETD limits the Categorical Exclusions and Negative Determination with Conditions to just some Program activities and grants a Positive Determination to four types of Program activities. This amendment was sealed through a contract modification signed on May 24, 2016, meaning that the Program was responsible for undertaking an EA.

The four activities that were granted a Positive Determination and that thus required an EA are:

i. Support to the GOC’s legal framework in regularization of land tenure and property rights.

ii. Support to the GOC in piloting methodologies for massive land titling, recovery of state lands, adjustment of legal frameworks related to land policy implementation.

iii. Support to the GOC to monitor and evaluate its land policy implementation policies.

iv. Support to Departmental and Municipal land use planning.

To prepare this document, the Program followed the guidelines set forth by the Code of Federal Regulations (CFR), Title 22, Part 216, Section 216.6, entitled “Environmental Assessments”. The process began by identifying alternatives to the proposed action; in this case, only one alternative was identified—the no-action option—because it became clear that all concerns highlighted during the scoping process would be addressed in the proposed action management plan, forestalling the need for a third alternative.

The EA drafting process included a review of all Program activities; workshops and meetings with the Program’s stakeholders; and a characterization of existing conditions to determine how future actions might alter the environment.

After careful analysis, the Program selected the proposed action as the preferred alternative. This preference is based on the fact that Program results to date, combined with the implementation of mitigation measures, show positive impacts above and beyond those of the no-action alternative.

This evaluation offers an opportunity to reflect on existing measures being implemented by the Program to mitigate potential negative environmental impacts, and to consider additional measures to supplement the Proposed Action. Many of these measures are recommendations for the Program’s government counterparts to carry out both now and in the future in order to ensure the sustainability of rigorous environmental management.

This Assessment contains, among other things, a list of potential and actual impacts of the proposed intervention; a list of deliverables, containing measures, meant to tackle the impacts identified; and a monitoring strategy to assist Program counterparts and beneficiaries.

The following table contains the list of the deliverables and monitoring plans that will be prepared by

LRDP:

Significant Issues Restitution claims overlapping with environmentally protected areas or areas with restricted land uses.

Formalization of land rights within strategic ecosystems, protected areas or ethnic-group owned territories.

Greater pressure on natural resources due to an increased investment in public goods (i.e.

roads and irrigation districts).

Difficulties for agricultural producers to comply with environmental standards and good agricultural practices.

Expansion of the agricultural frontier and depletion of water resources resulting from the implementation of productive land-use plans.

LR

DP

A ct iv iti es

Support the GoC administrating land restitution claims and implementing restitution rulings X

Support the GoC to implement massive land formalization processes X

Facilitate the administration of public lands X

Contribute to the consolidation of the multipurpose cadaster X

Support the departmental governments in developing productive land use and rural land tenure plans X

Offer technical assistance for the creation of public-private partnerships

(PPPs) X

Prepare studies and designs for the construction and rehabilitation of small-scale irrigation systems X

Prepare studies and designs for the rehabilitation and maintenance of tertiary roads X

Deliverable Monitoring Deadline and Responsible Party

Deliverable 1. List of environmental recommendations for the land restitution process

Considering these are going to be recommendations made to procedures defined by law or regulation, a monitoring plan will be drafted if found appropriate.

Submission Date to USAID: Five weeks after the EA has been approved.

Responsible Party: Environmental Team, LRDP.

Training/divulging will happen in the 30 days following the approval by COR and MEO.

Deliverable.2. Good environmental practices guide for agricultural and livestock productive projects.

Monitoring plan for the good management practices guide for agricultural and livestock productive projects. The plan will be prepared considering the parties that should be accountable for its implementation.

Submission Date to USAID:

Four months and two weeks after the EA has been approved.

Responsible Party: Environmental Team, LRDP.

Training/divulging will happen in the 30 days following the approval by COR and MEO.

Deliverable 3. Best Environmental Practices Guide for Massive Formalization Processes of Rural Property.

Considering this product is going to be delivered by a third party, the monitoring actions will be defined after the product has been approved by LRDP and USAID.

Submission Date to USAID:

2018/05/21

Responsible Party: LRDP.

Training/divulging will happen in the 30 days following the approval by COR and MEO.

Deliverable 4. List of environmental recommendations for the baldío (public land) adjudication process.

Considering these are going to be recommendations made to procedures defined by law or regulation, a monitoring plan will be drafted if found appropriate.

Submission Date to USAID: Ten weeks after the EA has been approved.

Responsible Party: Environmental Team, LRDP.

Training/divulging will happen in the 30 days following the approval by COR and MEO.

Deliverable Monitoring Deadline and Responsible Party

Deliverable 5. List of environmental recommendations for the design and implementation of POPSPRs.

Monitoring plan for the list of environmental recommendations to design and implement POPSPRs.

The plan will be prepared considering the parties that should be accountable for its implementation.

Submission Date to USAID:

Fifteen weeks after the EA has been approved.

Responsible Party: Environmental Team, LRDP.

Training/divulging will happen in the 30 days following the approval by COR and MEO.

LRDP works in 57 municipalities, distributed in 5 regions and six departments:

• Bolívar (Montes de María region): Córdoba, El Carmen de Bolívar, El Guamo, María La Baja, San Jacinto, San Juan Nepomuceno and Zambrano.

• Cauca: Buenos Aires, Caldono, Caloto, Corinto, Guachené, Jambaló, Miranda, Padilla, Puerto Tejada, Santander de Quilichao, Suárez, Toribío and Villa Rica.

• Cesar: Valledupar, La Jagua de Ibirico, Pueblo Bello, El Copey, Agustín Codazzi, La Paz, Becerril, San Diego and Bosconia.

• Meta: Villavicencio, Granada, Puerto López, Acacías, Puerto Gaitán, Fuente de Oro, El Castillo, El Dorado, Lejanías, Puerto Lleras and San Martín.

• Sucre (Montes de María region): Chalán, Coloso, Los Palmitos, Morroa, Ovejas, San Antonio de Palmitos, San Onofre and Tolú Viejo.

• Tolima: Ataco, Chaparral, Coyaima, Natagaima, Ortega, Planadas, Rioblanco, Roncesvalles and San Antonio.

PURPOSE AND NEED

The goal of this evaluation is to avoid or mitigate potential negative impacts which could possibly derive from the work carried out by the Land and Rural Development Program (LRDP or Program) in the areas of land restitution, formalization, and rural development, and where viable, contribute to an improved environmental desired future condition. LRDP will produce a set of environmental best management practices for land restitution, land formalization, and rural development as part of the environmental evaluation and its support to the Government of Colombia. Specifically, LRDP aims to secure "do no-harm" results through the support it provides to national and regional GOC counterparts on policy, piloting new methodologies, and direct and indirect implementation of land and productive projects.

SCOPING

Following the requirements defined in the regulation (22 CFR 216.6(e)(1)), consultations were held between the LRDP staff, the project-affected community, and the Program’s partners engaged in land restitution, land rights formalization and rural development. The purpose of this consultation was to (1) jointly determine the scope and significance of the issues, concerns and opportunities to be analyzed in the Environmental Assessment, including direct and indirect effects of the LRDP on the environment, and (2) increase cooperation between stakeholders and Program developers to facilitate uptake of environmental best management practices guidelines.

In this context, a consultation process was held with public entities, local governments, private companies, communities or community groups, and vulnerable populations, including women and ethnic groups, regarding the proposed action. This occurred over a series of six public meetings held between November 2nd, 2016 and December 6th, 2016. These consultations were designed to be participatory, informative, collaborative, and adapted to the context and culture of each LRDP focus region.

Besides the consultations, two other meetings were held to gather relevant information. One of these meetings was with the Ministry of the Environment that was unable to take part of the previous events.

The dialogue was with a member of the Ministry’s Legal Office and was centered on (i) the relation between massive formalization processes and forest reserves and (ii) the land fund that should be created when the peace accords are implemented. The second meeting was with an expert on irrigation districts, looking to improve the current comprehension on the potential impacts that can be derived from the construction of a district like the ones the Program is helping design.

BUREAU ENVIRONMENTAL OFFICERS FINDINGS AND SPECIFIED CONDITIONS OF APPROVAL

According to 22 CFR 216.3(a)(9), the EA appropriately provides detailed information to provide Agency and host country decision-makers with a full discussion of significant environmental effects of a proposed action. It includes alternatives which would avoid or minimize adverse effects or enhance the quality of the environment so that the expected benefits of development objectives can be weighed against any adverse impacts upon the human environment or any irreversible or irretrievable commitment of resources.

No additional conditions of approval are required.

COLOMBIA LAND AND

RURAL DEVELOPMENT

PROGRAM

ENVIRONMENTAL ASSESSMENT

July 2017

This publication was produced for review by the

United States Agency for International Development.

It was prepared by Tetra Tech.

Cover Photo: Beekeepers check a hive in Manaure, Cesar. The honey producer’s association have a large majority of their hives on protected forest land (USAID LRDP).

All photos are the property of USAID unless otherwise specified.

This publication was produced for review by the United States Agency for International

Development by Tetra Tech ARD through the Colombia Land and Rural Development Program

Task Order under the Strengthening Tenure and Resource Rights (STARR) Indefinite Quantity

Contract (USAID Contract No. AID-EPP-I-00-06-00008, Task Order No. AID-514-TO-13-00015).

Prepared by: Tetra Tech ARD

159 Bank Street, Suite 300

Burlington, VT 05401

Tel: 802-495-0282

Fax: 802-658-4247

Email: International.Development@TetraTech.com

Contact Information: Anna Knox, Chief of Party anna.knox@colombialrdp.com

Tel.: (57) (1) 7452641

Carrera 7 No. 74-36, Piso 6, Bogotá, Colombia

José Luis Astorquia, Environmental Expert jose.astorquia@colombialrdp.com mailto:International.Development@TetraTech.com mailto:anna.knox@colombialrdp.com mailto:jose.astorquia@colombialrdp.com

COLOMBIA LAND AND RURAL

DEVELOPMENT PROGRAM

JULY 2017

DISCLAIMER

The author’s views expressed in this publication do not necessarily reflect the views of the United

States Agency for International Development or the United States Government.

LAND AND RURAL DEVELOPMENT PROGRAM

TABLE OF CONTENTS

Acronyms

1. Executive Summary

2. Introduction and Context

3. Purpose, Need and Scoping

3.1. Purpose and Need

3.2. Scoping

4. Existing Conditions

4.1. Southern Tolima Region

4.1.1. Social Situation

4.1.2. Land Potential

4.1.3. Land Tenure Situation

4.1.4. Environmental Issues

4.1.4.1. Fauna and Flora Resources

4.1.4.2. Water Resources

4.1.4.3. Air Quality

4.1.4.4. Soil

4.2. Meta Region

4.2.1. Flora and Fauna

4.2.2. Social Situation

4.2.3. Land Potential

4.2.4. Land Tenure Situation

4.2.5. Environmental Issues

4.2.5.1. Fauna and Flora Resources

4.2.5.2. Water Resources

4.2.5.3. Air Quality

4.2.5.4. Soil

4.3. Cauca Region

4.3.1. Social Situation

4.3.2. Land Potential

4.3.3. Land Tenure Situation

4.3.4. Environmental Issues

4.3.4.1. Fauna and Flora Resources

4.3.4.2. Water Resources

4.3.4.3. Air Quality

4.3.4.4. Soil

4.4. Cesar Region

4.4.1. Social Situation

4.4.2. Land Potential

4.4.3. Land Tenure Situation

4.4.4. Environmental Issues

4.4.4.1. Fauna and Flora Resources

4.4.4.2. Water Resources

4.4.4.3. Air Quality

4.4.4.4. Soil

4.5. Montes de María Region

4.5.1. Social Situation

4.5.2. Land Potential

4.5.3. Land Tenure Situation

4.5.4. Environmental Issues – Sucre

4.5.4.1. Fauna and Flora Resources

4.5.4.2. Water Resources

4.5.4.3. Air Quality

4.5.4.4. Soil

4.5.5. Environmental Issues – Bolívar

4.5.5.1. Fauna and Flora Resources

4.5.5.2. Water Resources

4.5.5.3. Air Quality

4.5.5.4. Soil

5. Alternatives

5.1. Alternative A – Proposed Action

5.1.1. Support the GOC Administrating Land Restitution Claims and Implementing

Restitution Rulings

5.1.2. Support the GOC to Implement Massive Land Formalization Processes

5.1.3. Facilitate the Administration of Public Lands

5.1.4. Contribute to the Consolidation of the Multipurpose Cadaster

5.1.5. Support the Departmental Governments of Tolima, Meta, and Cesar in Developing

Productive Land Use and Rural Land Tenure Plans (POPSPR)

5.1.6. Offer Technical Assistance for the Creation of Public-Private Partnerships (PPPs) .. 55

5.1.7. Prepare Studies and Designs for the Construction and Rehabilitation of Small-Scale

Irrigation Systems

5.1.8. Prepare Studies and Designs for the Rehabilitation and Maintenance of Tertiary

Roads 58

5.2. Alternative B – No-Action

6. Impacts

6.1. Alternative A – Proposed Action

6.1.1. Support the GOC Administrating Land Restitution Claims and Implementing

Restitution Rulings

6.1.1.1. Legal Analysis

6.1.1.2. Environmental Analysis

Positive Impacts

Negative Impacts

6.1.2. Support the GOC to Implement Massive Land Formalization Processes

6.1.2.1. Legal Analysis

6.1.2.2. Environmental Analysis

Positive Impacts

Negative Impacts

6.1.3. Facilitate the Administration of Public Lands

6.1.3.1. Legal Analysis

6.1.3.2. Environmental Analysis

Positive Impacts

Negative Impacts

6.1.4. Contribute to the Consolidation of the Multipurpose Cadaster

6.1.4.1. Legal Analysis

6.1.4.2. Environmental Analysis

Positive Impacts

Negative Impacts

6.1.5. Support the Departmental Governments of Tolima, Meta, and Cesar in Developing

Productive Land Use and Rural Land Tenure Plans

6.1.5.1. Legal Analysis

6.1.5.2. Environmental Analysis

Positive Impacts

Negative Impacts

6.1.6. Offer Technical Assistance for the Creation of Public-Private Partnerships (PPPs) .. 82

6.1.6.1. Legal Analysis

6.1.6.2. Environmental Analysis

Positive Impacts

Negative Impacts

6.1.7. Prepare Studies and Designs for the Construction and Rehabilitation of Small-Scale

Irrigation Systems

6.1.7.1. Legal Analysis

6.1.7.2. Environmental Analysis

Positive Impacts

Negative Impacts

6.1.8. Prepare Studies and Designs for the Rehabilitation and Maintenance of Tertiary

Roads 88

6.1.8.1. Legal Analysis

6.1.8.2. Environmental Analysis

Positive Impacts

Negative Impacts

6.2. Alternative B – No-Action

6.2.1. Support the GOC Administrating Land Restitution Claims and Implementing

Restitution Rulings

6.2.1.1. Positive Impacts

6.2.1.2. Negative Impacts

6.2.2. Support the GOC to Implement Massive Land Formalization Processes

6.2.2.1. Positive Impacts

6.2.2.2. Negative Impacts

6.2.3. Facilitate the Administration of Public Lands

6.2.3.1. Positive Impacts

6.2.3.2. Negative Impacts

6.2.4. Contribute to the Consolidation of the Multipurpose Cadaster

6.2.4.1. Positive Impacts

6.2.4.2. Negative Impacts

6.2.5. Support the Departmental Governments of Tolima, Meta, and Cesar in Developing

Productive Land Use and Rural Land Tenure Plans

6.2.5.1. Positive Impacts

6.2.5.2. Negative Impacts

6.2.6. Offer Technical Assistance for the Creation of Public-Private Partnerships (PPPs) .. 96

6.2.6.1. Positive Impacts

6.2.6.2. Negative Impacts

6.2.7. Prepare Studies and Designs for the Construction and Rehabilitation of Small-Scale

Irrigation Systems

6.2.7.1. Positive Impacts

6.2.7.2. Negative Impacts

6.2.8. Prepare Studies and Designs for the Rehabilitation and Maintenance of Tertiary

Roads 98

6.2.8.1. Positive Impacts

6.2.8.2. Negative Impacts

7. Preferred Alternative

8. Measures and Good Practices

9. Monitoring

10. List of Preparers

ACRONYMS

ACIN Northern Cauca Indigenous Communities Association

ADR Rural Development Agency

ANT National Land Agency

ART Land Renovation Agency

BOD Biochemical Oxygen Demand

CFR Code of Federal Regulations

CO Contracts Officer

COR Contracts Officer Representative

DANE Statistics National Administrative Department

DNP National Planning Department

EA Environmental Assessment

ETD Environmental Threshold Decision

GHG Green House Gas

GOC Government of Colombia

IGAC “Agustin Codazzi” Geographic Institute

INVIAS National Road Institute

LRDP Land and Rural…