J.11 IEE.pdf

INITIAL ENVIRONMENTAL

EXAMINATION

PROJECT/ACTIVITY DATA

Project/Activity Name: Economic Growth Portfolio Geographic Location(s) (Country/Region): Democratic Republic of the Congo/ East Africa Amendment (Yes/No), if Yes indicate # (1, 2...): No Implementation Start/End Date (FY or M/D/Y): April 1, 2022 - April 1, 2027 If Amended, specify New End Date: NA Solicitation/Contract/Award Number(s): Multiple Implementing Partner(s): Multiple Bureau Tracking ID: DRC EG Portfolio IEE https://ecd.usaid.gov/document.php?doc_id=54589 Tracking ID of Related RCE/IEE (if any): Kivu DRC Value Chain IEE:

https://ecd.usaid.gov/repository/pdf/48791.pdf DRC Asili 2.0 IEE:

https://ecd.usaid.gov/repository/pdf/51421.pdf

Tracking ID of Other, Related Analyses:

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit(s):

(e.g. Mission or Bureau or Office)

USAID DRC / Economic Growth

Other Affected Operating Unit(s):

Lead BEO Bureau: AFR Funding Account(s) (if available): TBD Original Funding Amount:

If Amended, specify funding amount: NA If Amended, specify new funding total: NA Prepared by: Economic Growth CORs and , Mission Environment Officer Date Prepared: November 2021

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Analysis Type: Environmental Examination Deferral Environmental Determination(s): Categorical Exclusion(s) Negative

Positive Deferred (per 22 CFR 216.3(a)(7)(iv) IEE Expiration Date (if applicable): April 1, 2027 Additional Analyses/Reporting Required: EMMP, ERF, PERSUAP Climate Risks Identified (#): Low ___19___ Moderate ___6___ High ___1___ Climate Risks Addressed (#): Low ___19___ Moderate ___6___ High ___1___

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

PROJECT/ACTIVITY SUMMARY

The purpose of this IEE, in accordance with 22 CFR 216, is to provide the first review of the reasonably foreseeable effects on the environment, as well as recommended Threshold Decisions for the activities of USAID/DRC’s Economic Growth Office. All Economic Growth activities funded through the USAID/DRC/Economic Growth Office are covered by this IEE, except for Strengthening Value Chains (SVC), Strengthening Livelihoods Resilience (SLR) and Virunga Foundation activities which are addressed in separate IEEs. The activities funded by USAID/DRC, but which are managed from USAID/W, are also covered by this IEE, as are activities that receive funding from USAID/W, but which are managed at the Mission.

This IEE is a consolidation of all the previous threshold determinations for all of the activities managed and funded by the EG Office in the DRC and this IEE replaces and supersedes the previous EG IEE and its amendments:

THRESHOLD DETERMINATION

Categories of activities under this project include the following and are subject to categorical exclusion and negative determination with conditions.

Upon approval of this document, the determinations become affirmed, per Agency regulations (22

CFR 216).

TABLE 1: ENVIRONMENTAL DETERMINATIONS

Projects/Activities Categorical Exclusion Citation (if applicable)

Negative Determination

Positive Determination1

Deferral2

1. Agriculture

1.1. Agriculture Research support ☒ ☐ ☐

1.2. Increase Technology Piloting, Promotion and Use of Technologies that Increase Ag Productivity

1.3. Market linkage facilitation

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

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

1.4. Value chain development ☒ ☐ ☐

1.5. Integrated Pest Management

1.6. Improve coordination of

interventions in the control of crop disease by revitalizing the existing coordination committees at national and provincial levels

§216.2(c)(2)(i)

§216.2(c)(2)(iii)

1.7. Generate performance crop

varieties that are resistant to diseases and other biotic and abiotic constraints.

1.8. Develop a durable seed

system

1.9. Crop Management Technical

Assistance

1.10. Increase advocacy with civil

society to implement appropriate regulation

§216.2(c)(2)(i)

§216.2(c)(2)(iii)

1.11. Policy advocacy with GoDRC

to create better environment for agribusiness

1.12. Scaling advisory and

extension service §216.2(c)(2)(i)

2. Responsible Mineral Trade (RMT)

2.1. Improving governance and

formalization of artisanal and small-scale mining

2.2. Facilitate market-driven

solutions, including private sector transactions and improved due diligence and traceability of minerals from DRC

2.3. Mineral sector reform and

transparency, including anti-corruption

2.4. Increase awareness and

coordination of responsible sourcing from DRC.

3. Cross-Sectoral Economic Growth / Private Sector Development

3.1. Loans guarantee ☒ ☐ ☐

3.2. Investment Facilitation, Financing and Financial Sector Activities

3.3. Conditional Cash Transfers

3.4. Small, Unconditional Cash

Transfers

3.5. Market linkage facilitation

3.6. Trade Facilitation

§216.2(c)(2)(iii)

3.7 Generalized enterprise

development support, including to economic zones and incubation clusters

4. Energy

4.1. Power sector coordination to

increase strategic investments in energy programs.

4.2. Transaction support to

advance specific energy projects.

4.3. Energy policy reform ☒ ☐ ☐

CLIMATE RISK MANAGEMENT

The climate risk management (CRM) assessment for the relevant activities is documented in this IEE (see section 4.2 for further discussion and Annex 1 for the CRM screening summary table).

The analysis is based on the USAID DRC CDCS CRM, USAID Climate Risk Screening and Management Tool for Project Design (U.S. Climate Resilience Toolkit: https://toolkit.climate.gov/).

BEO SPECIFIED CONDITIONS OF APPROVAL

Conduct Environmental and Social screening of USG-Supported Transactions: The implementing partner will be expected to conduct environmental and social impact screening for transactions using the Power Africa Environmental and Social Review Methodology (PESRM) checklist (Annex 2).

● For each USG-supported transaction, the implementing partner will conduct environmental and social impact screening using the PESRM checklist. Notification of each new transaction will be made between the COR and offeror (depending who has received such information first). It is the COR’s responsibility to affirmatively ensure compliance.

● The implementing partner will rescreen USG-Supported Transactions when such transactions advance by stage or significantly change, e.g. in siting, scale or scope.

Rescreening will entail reviewing and indicating on the transaction’s original PESRM Checklist and Facesheet that they are still applicable or by documenting the relevant change(s). The implementing partner will conduct rescreening in accordance with its standard operating procedures. Notification of all change(s) in transactions will be made between the COR and the offeror (depending who has received such information first). It is the COR’s responsibility to affirmatively ensure compliance.

● Once a PESRM checklist and Facesheet have been completed for a USG-Supported Transaction, the transaction will be reviewed by Power Africa (or the Mission, when appropriate) to determine whether (continued) support is appropriate. The Mission Environment Officer and Regional Environmental Officer/Adviser will participate in the review of all the PESRM Checklists and Facesheets to assist with their interpretation. The results of the PESRM Checklists and Facesheets will be shared with the BEO on an ongoing basis for follow-up discussions as necessary.

Reporting:

The AFR BEO requests that the activity managers/AORs/CORs provide access to the Regional Environmental Advisor (REA) and to the AFR BEO Team to review (not approve) the Environmental Mitigation and Monitoring Plans/Reports (EMMPs/EMMRs) that will be written to implement the findings of this IEE. These should be uploaded into the appropriate sub-folder(s) of this Google Drive folder: https://drive.google.com/drive/folders/1q7HGMzgopJ- MuKxkQEJ4GSPp9R7Qzv-5?usp=sharing

This will facilitate access by all parties who need these documents, including the Mission Environmental Officer and the AOR/COR. This will allow the REA and the BEO Team to spot-check and review these documents to confirm that the mitigations seem appropriate and are cognizant of the specific design of the activities.

The negative determinations recommended in this IEE are contingent on full implementation of specified conditions and a set of general monitoring and implementation requirements specified in this “BEO Conditions” section as well as Section 5 of the IEE. Some specific conditions to highlight include:

● New activities and those revised to incorporate a change in scope or nature will require an IEE amendment to identify and address potential environmental impacts. This condition is mentioned again in Section 7 of this IEE.

COVID-19 Condition:

In order to reduce COVID-19 transmission during the implementation of these activities, USAID managers must:

● Ensure all activities addressed by this IEE adhere to current, applicable COVID-19 guidelines. Refer to the AFR COVID-19 PIEE (attached and linked here --https://ecd.usaid.gov/document.php?doc_id=52754) for links to U.S. and international guidance on appropriate measures to reduce COVID-19 transmission.

Such measures may include, but are not limited to social distancing, use of personal protective equipment, limiting the size of gatherings and travel, and effective disinfection.

● Share with the partner:

● Applicable COVID-19 guidance from the USAID Mission or U.S. Embassy;

● Applicable COVID-19 guidance from local authorities;

● The following Agency-wide “COVID-19 GUIDANCE FOR IMPLEMENTING

PARTNERS” page on the USAID website: https://www.usaid.gov/work-usaid/resources-for-partners/covid-19-guidance-implementing-partners.

● Ensure that partners have appropriate training, authorization, and resources to meet the expectations of the applicable guidance while implementing these activities.

IMPLEMENTATION

In accordance with 22 CFR 216 and Agency policy, the conditions and requirements of this document become mandatory upon approval. This includes the relevant limitations, conditions and requirements in this document as stated in Sections 3, 4, and 5 of the IEE and any BEO Specified Conditions of Approval.

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION

PROJECT/ACTIVITY NAME: Economic Growth Portfolio

Bureau Tracking ID: https://ecd.usaid.gov/document.php?doc_id=54589

Approval: Cleared electronically 12/20/2021 Paul Sabatine, USAID/DRC Mission Director Date

Clearance: Cleared electronically 12/17/2021 Miranda Jolicoeur, Acting Deputy Mission Director Date

Clearance: Cleared electronically 12/15/2021 Dana Beegun, USAID/DRC Office Director, EG Date

Clearance: Cleared electronically 12/17/2021 Diane Mbanzidi, USAID/DRC Mission Environmental Officer Date

Clearance: Cleared 12/22/2021 David Kinyua, Regional Environmental Advisor Date

Clearance: Cleared 01/26/2022 Colin Quinn, Regional Climate Integration Lead Date

Concurrence: 03/08/2022 Brian Hirsch, AFR Bureau Environmental Officer Date

DISTRIBUTION:

USAID/DRC EG Office, MEO, IPs

INITIAL ENVIRONMENTAL

EXAMINATION

CONTENTS

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION 7

1.0 PROJECT/ACTIVITY DESCRIPTION

1.1 PURPOSE OF THE IEE 9

1.2 PROJECT/ACTIVITY OVERVIEW 9

1.3 PROJECT/ACTIVITY DESCRIPTION 12

2.0 BASELINE ENVIRONMENTAL INFORMATION

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT 17

2.2 NATIONAL ENVIRONMENTAL POLICIES AND PROCEDURES 20

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK

PROJECT/ACTIVITY 1: AGRICULTURE 22

PROJECT/ACTIVITY 2: RESPONSIBLE MINERAL TRADE 26

PROJECT/ACTIVITY 3: CROSS-SECTORAL ECONOMIC GROWTH/PRIVATE SECTOR

DEVELOPMENT 27

PROJECT/ACTIVITY 4: Energy 29

4.0 ENVIRONMENTAL DETERMINATIONS

4.1 RECOMMENDED ENVIRONMENTAL DETERMINATIONS 31

4.2 CLIMATE RISK MANAGEMENT 35

5.0 CONDITIONS AND MITIGATION MEASURES

5.1 CONDITIONS 37

5.2 AGENCY CONDITIONS 38

5.3 MITIGATION MEASURES 39

6.0 LIMITATIONS OF THIS INITIAL ENVIRONMENTAL EXAMINATION

7.0 REVISIONS

ATTACHMENTS:

ANNEX 1. PROJECT CLIMATE RISK MANAGEMENT SUMMARY TABLE

Annex 2: ENVIRONMENTAL MITIGATION AND MONITORING PLAN (EMMP) TEMPLATE 73

ANNEX 3: ENVIRONMENTAL MITIGATION AND MONITORING REPORT (EMMR) TEMPLATE 80

ANNEX 4: ANNEX 4: POWER AFRICA ENVIRONMENTAL & SOCIAL REVIEW

METHODOLOGY (PESRM) CHECKLIST

1.0 PROJECT/ACTIVITY DESCRIPTION

1.1 PURPOSE OF THE IEE

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 Economic Growth interventions described herein and recommend determinations and, as appropriate, conditions, for these activities. Upon approval, these determinations become affirmed, and specified conditions become mandatory obligations of implementation. This IEE also documents the results of the 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 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 OVERVIEW

1.2.1. BACKGROUND

The USAID/DRC’s EG program contributes to the cross sectoral USAID/DRC Country Development and Cooperation Strategy, integrating economic growth, education, health, and democracy and governance activities.

DRC has the third largest population of the poor globally. Poverty in DRC is high, remains widespread and pervasive, and is increasing due to impacts from COVID-19. In 2018, it was estimated that 73% of the Congolese population, equaling 60 million people, lived on less than $1.90 a day (the international poverty rate). As such, about one out of six people living in extreme poverty in SSA -live in DRC.DRC’s economic growth decelerated from its pre-COVID level of 4.4% in 2019, to an estimated 0.8% in 2020. Growth was driven by the extractives sector which, helped by robust demand from China,expanded by 6.9% in 2020 (compared to 1% in 2019).

Meanwhile, non-mining sectors contracted by 1.6% (vs. growth of 5.7% in 2019) due to pandemic-related mobility restrictions, weaker trading activities and constrained government spending.

Private consumption and government investment fell in 2020 by an estimated 1.0 and 10.2%, respectively.In an effort to respond to the pandemic, the government faced substantial spending pressure while revenue declined due to reduced economic activity and extended fiscal relief measures.Although the DRC initiated reforms aimed at strengthening governance in the management of natural resources and improving the business climate, the country is ranked 183 out of 190 countries in the 2020 DoingBusiness report. Key governance indicators remain weak.3

The EG office invests in key aspects of the Congolese economy—agriculture, minerals and energy—to promote inclusive economic growth that reduces poverty and enhances food security.

3 https://www.worldbank.org/en/country/drc/overview#1

According to the International Fund for Agriculture Development, only about 10 million of the country's 80 million hectares of arable land are under cultivation, employing close to 70 percent of the active population—predominantly in subsistence agriculture—offering enormous potential to increase food security and sustainable, equitable economic development. Illegal mining is used by armed groups to finance their activities and such production also reduces legitimate tax revenue for the government. Although the country’s hydropower resources are sufficient to meet the current electricity demand of the entire African continent, the DRC currently lacks the governance and institutional capacity to utilize this potential for even its own energy needs. DRC’s natural resources, if managed transparently and are sustainable, have the potential to drive the economic growth and human development in the DRC.

Agriculture makes up close to 45 percent of the DRC’s Gross Domestic Product and employs 62 percent of men and 84 percent of women. However, despite the size and importance of DRC’s agricultural sector, over the past 15 years the nutritional status of the population has declined, and the country continues to rank at the bottom of many malnutrition indicators. The goal of eradicating extreme poverty in the DRC cannot be achieved without significant agricultural development. Improving the agriculture sector has the potential to significantly reduce the rates of malnourishment in the DRC. USAID’s agricultural activities will improve food security and nutrition in the DRC by helping small farmers improve the production, processing, and marketing of their agriculture commodities and also support research to promote appropriate crop varieties.

USAID also supports loan guarantees that provide access to credit for small and medium-sized Congolese enterprises, with a focus on loans that would support agricultural production and marketing.

Since the early 1990s, illegal exploitation of minerals from artisanal mining in the Great Lakes region of Central Africa has been used to finance armed groups and criminal elements within state security forces, exacerbating ongoing conflict. Recently, international and domestic advocacy efforts have encouraged positive reforms within the government of the Democratic Republic of the Congo, regional governments, and the local and global private sector. U.S.-listed companies sourcing tin, tantalum, tungsten and gold (known collectively as the “3T’s and gold”) from the region are now required to audit their supply chains and publicly report usage of conflict minerals. The governance, security, and implementation challenges necessary for these reforms must be adequately addressed for the minerals trade to contribute to the formal economy and inclusive development in the DRC. USAID’s Responsible Minerals Trade (RMT) Program establishes conflict-free supply chains, promotes civilian control of the minerals sector, ensures that vulnerable populations are protected, and supports monitoring of conflict-free minerals, in coordination with other U.S. government agencies, the Congolese government, international donors, the private sector, and civil society.

DRC has among the lowest electricity access, roughly 1 in 10 people, in Africa. With a national population around 100 million, there is tremendous opportunity to catalyze the enormous hydrological potential (100 GW) as well as other renewable sources, including solar, geothermal and biomass. Decentralized mini-grid and off-grid solutions could reach an estimated 61 million people, according to Power Africa’s DRC Off-grid Assessment. A renewable energy market is unquestionably emerging in DRC. USAID has indelibly shaped reform in DRC’s nascent energy sector. Through a bilateral contract with Ecodit, concluded in 2019, USAID supported drafting the legal framework for two new agencies, the energy regulator (ARE) and rural electrification agency (ANSER). In early 2021, the DRC President allocated $5 million to ANSER in order to establish the Mwinda Fund dedicated to renewable energy projects. USAID provided catalytic grants to pilot approaches and establish companies in new markets throughout DRC. Several of these companies that received early USG support are now well established, such as Altech which is now operating in twenty-two of the country’s twenty seven provinces. Following the conclusion of the Ecodit contract in 2019, and in the absence of energy funding, USAID/DRC turned to various Power Africa and USAID/W mechanisms to provide technical assistance. As of 2021, multiple energy activities operate in DRC. USAID/DRC plays an Activity Manager role to track implementation and communicate regularly with implementing partner staff and AOR/CORs in Pretoria and Washington.

1.2.2. DESCRIPTION OF ACTIVITIES

USAID’s current and planned Economic Growth (EG) Portfolio includes the following 6 projects

1) Cross-Sectoral Economic Growth / Private Sector Development : In support of the broader USAID portfolio alignment with the USAID Public Sector Enterprise and Economic Growth Policy, the IEE covers general private sector development actions, most notably efforts to strengthen access to finance, improve the business enabling environment, and partner with private sector actors to accelerate or improve USAID’s ability to reach all three Development Objectives outlined in the Country Development Cooperation Strategy.

This includes a range of actions to co-finance development actions with private sector partners through Global Development Alliances.

2) Agriculture: under the Economic Growth section, it supports food security and nutrition of populations, helping them to access market linkages in a more efficient way that provides employment both in urban and in rural areas. It is the main broad-based development tool that allows a fair access of populations to food and revenues. While Food production in DRC continues almost entirely to be in the hands of small-scale farmers engaged in traditional agriculture and without appropriate production means, it is more likely that the DRC will continue to have difficulties to address food security problems for its population. Projects under this sector will tackle the different factors that affect the development of a market-oriented agriculture that will create better livelihood conditions for farmers and help create jobs along the different agriculture value chains engaged in a commercial agriculture.

3) Responsible Minerals Trade (RMT): Through strengthening legal markets, USAID’s Responsible Minerals Trade program works to break the link between conflict in the eastern DRC and minerals trade, in coordination with other U.S. government agencies, the Congolese government, donors, the private sector, and civil society. U.S. Dodd-Frank legislation requires companies to report on the presence of conflict minerals (tin, tantalum, tungsten and gold) in their supply chains. USAID programs focus primarily on: 1) supporting the revised DRC Mining Code including the qualification and validation of mine sites to ensure they are free of violations prior to development, and 2) to stimulate market-based solutions to trace minerals from the mine site to the final buyer.

4) Energy: Programs accelerate electricity projects and address related policy issues to facilitate the expansion of energy generation, transmission, and distribution to increase access to reliable, affordable, and sustainable electricity. Activities include power sector planning and capacity building for effective management, including responsible and transparent governance and business practices. • Small-scale PV systems should be used or constructed when possible.

5) Strengthening Value Chain: covered by an activity specific IEE and for that reason, will not be discussed here.

6) Virunga Development Activity: covered under an activity specific IEE and for that reason, will not be covered here.

1.3 PROJECT/ACTIVITY DESCRIPTION

1. Agriculture

Activity1.1: Agricultural Research Description: These activities will strengthen the capacity of national research institutions to address agricultural research problems and to participate in national and regional research initiatives, including improving crop productivity through the development and promotion of appropriate varieties which are resistant to diseases and other biotic constraints, and disseminate approaches for the integrated management of a diseases and pests in order to contribute to increased food availability, income generation and sustainable livelihoods.

Activity 1.2: Increase Technology Piloting, Promotion and Use of Technologies that Increase Ag Productivity Description: These activities will Pilot and scaling of innovations that contribute to increased food availability, income generation and sustainable livelihoods

Activity 1.3: Market linkage facilitation Description: This activity will promote the facilitation of introductions and incentivized coordination to strengthen private sector investment in business elements that engage smallholder farmers, pastoralists, apiculturists, and other actors within the markets

Activity 1.4: Value chain development This activity will Identify and develop crops and linkages within high impact value chains to increase farmers’ incomes and improve nutritional security

Activity 1.5: Integrated Pest Management Description: this activity aims to monitor diseases status, forecast and document changes in their expansion, incidence and severity.

Collect, document and disseminate information and research results on crop diseases.

Implement an efficient national monitoring and evaluation system.

Activity 1.6: Improve coordination of interventions in the control of crop disease by revitalizing the existing coordination committees at national and provincial levels Description: This activity aims to Improve the capacity and organization of stakeholders to put in place effective mechanisms to anticipate and address issues related to pest and disease control

Activity 1.7: Generate performant crop seed varieties that are resistant to diseases and other biotic and abiotic constraints Description: This activity will improve the capacity of institutions involved in the development of performant varieties that respond to constraints of the producers.

Activity 1.8: Develop a durable seed Systems Description: This activity works with public and private sector actors to develop and implement a durable system for maintaining and disseminating quality planting materials of improved varieties.

Activity 1.9: Crop Management Technical Assistance Description: This activity aims to strengthen the operational capacity of sub-sector stakeholders for improvement, promotion, and utilization of crops through appropriate management and processing approaches.

Activity 1.10: Increase advocacy with civil society to implement appropriate regulation Description: Strengthen business association and civil society organizations policy research, capacity and influence

Activity 1.11: Policy advocacy with GoDRC to create better environment for agribusiness Description: Strengthen public sector responsiveness to agribusiness, business enabling environment needs.

Activity 1.12: Scaling advisory and extension services Description: This activity will promote private and public sector agricultural extension and advisory Service

2. Responsible Mineral Trade (RMT)

2.1: Improving governance and formalization of artisanal and small-scale mining Description: Capacity building and technical assistance support for key actors who govern or directly participate in responsible minerals supply chains including miners, GDRC officials, provincial authorities, private sector actors, and civil society and communities. Activities aim to build governance capacity for mining activities by strengthening government enforcement capacity and multi-stakeholder monitoring and oversight, including environmental and social issues such as child labor, occupational safety, sexual gender-based violence, land tenure conflicts, etc. The technical assistance for private sector actors may include business development, such as financial and operational planning, tools to conduct due diligence and risk mitigation. Technical assistance to governance could include supporting designing and implementing systems to administer and monitor artisanal mining formalization.

2.2: Facilitate market-driven solutions, including private sector transactions and improved due diligence and traceability of minerals from DRC Description: This activity will promote market facilitation and support to building relationships between private sector actors to achieve responsible mineral trade. Support to improve private sector performance, including to mining cooperatives and other key actors, such as local, provincial and central government as well as civil society. Scale mineral certification and traceability system to support responsible mineral sourcing from DRC.To ensure mineral supply chains from miners, exporters, and processors to manufacturing, solutions will responsibly manage environmental and social risks, especially for purchases from areas potentially associated with armed conflict, unregulated financing, human rights violations.

2.3: Mineral sector reform and transparency, including anti-corruption Description: This activity will map mine sites, investigate and report cases and routes of mineral fraud and trafficking.

2.4. Increase awareness and coordination of responsible sourcing from DRC.

Description: Increase access to market information among supply-chain actors. Support for the Public Private Alliance for Responsible Minerals Trade (PPA) and other bodies that promote sharing lessons and best practices.

3. Cross-Sectoral Economic Growth / Private Sector Development

3.1: Loan guarantee Description: This activity will work on DCA loan portfolio guarantees with micro-finance institutions and commercial banks to support loans to individuals, associations, groups, micro- and small-enterprises (MSE), village savings and loans associations, and non-governmental organizations (NGOs) for loans in any sector, with an emphasis on agriculture. Loans may be given throughout the DRC.

3.2: Investment Facilitation, Financing and Financial Sector Activities Description: Facilitative actions and catalytic investments to increase investment in Congolese businesses

3.3: Conditional Cash Transfers Description: Conditional cash transfers are transfers given to beneficiary’s conditional on specific actions such as sending children to school or making regular health visits, and unconditional transfers are those that are given to beneficiaries without any specific requirements beyond eligibility.

3.4. Small, Unconditional Cash Transfers

Description: Unconditional cash transfers aim to improve outcomes through a cost-efficient manner and to reduce poverty by providing finance without any conditions from the recipient.

3.5: Market linkage facilitation Description: This activity will work on the facilitation of linkages and incentivized coordination to strengthen private sector investment in business elements that engage market actors.

3.6: Trade Facilitation Description: This activity aims to facilitate the linkages and incentivized coordination to strengthen trade facilitation.

3.7: Generalized enterprise development support, including to economic zones and incubation clusters Description: Support with business development providers to accelerate business registration, incorporation, planning and development.

4. Energy

4.1: Power sector coordination to increase strategic investments in energy programs Description: USAID coordinates a whole-of-government approach to increase electricity generation and connections through the multi-agency Power Africa initiative. Activities include coordinating donor and private sector partner investments to achieve coordinated impact.

4.2: Transaction support to advance specific energy projects.

Description: Technical assistance to advance key power sector transactions, including financial and legal support and a range of other sector specific tools. Analysis of potential impacts during each phase of an energy development project will ensure environmental and social compliance, and ultimately increase the project bankability and sustainability to deliver electricity over the lifetime of the power project. Support will emphasize small-scale renewable energy projects, particularly solar, wind, geothermal and biomass technologies.

4.3: Energy policy reform Description: Technical assistance and institutional capacity building to government, private sector and other stakeholders to carry out policy reforms in the power sector. Activities may include supporting national, regional or local authorities to conduct power sector planning, tax and policy reforms to promote competitive procurement of renewable energy, workforce training and development, capacity building to utilities and regulators, power sector studies to guide decision-making.

Will this project/activity involve construction4 as defined by ADS 201 and 303? Yes ☒ No ☐

4 Construction, as defined by ADS 201 and 303, includes: construction, alteration, or repair (including dredging and excavation) of buildings, structures, or other real property and includes, without limitation, improvements, renovation, alteration and refurbishment. The term includes, without limitation, roads, power plants, buildings, bridges, water treatment facilities, and vertical structures. In the box below, describe any construction planned for this project/activity.

Refer to ADS 201maw for required Construction Risk Management procedures.

If yes, describe in the space below:

2.0 BASELINE ENVIRONMENTAL INFORMATION

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT

GEOGRAPHICAL SCOPE

USAID’s Economic Growth programs currently operate across DRC with a focus in the eastern part of the country.

AREA DESCRIPTION

Geography

The Democratic Republic of the Congo possesses the second largest rainforest in the world (the first being the Amazon). Rainforest covers most of the Congo River basin, central, and western regions. The Congo River runs some 4,398 km, and it is navigable for about 1,448 km of its basin.

The south and southwest of this area is surrounded by plateaus merging into savannas. To the west we can find mountainous terraces and dense grasslands extending beyond the Congo River to the north.

In the east, the land rises into plateaus with heights more than 1,500 m, which forms the mountains of the Great Rift Valley with its volcanic origins and glaciated formations. There is an important system of lakes at the country’s eastern borders: lakes Albert, Edward Kivu, Mweru and Tanganyika.

Climate and Rainfall

The climate is equatorial, hot and humid all year round with no dry season, in the central area crossed by the equator where there is a vast rainforest; or tropical, hot all year round but with a dry season, usually of short duration, in both the areas north and south of the equator. The dry season occurs in opposite periods, from December to February (boreal winter) north of the equator, and from June to September (austral winter) south of the equator.

The rains occur in the form of downpour or thunderstorm—the DRC is the country that receives the greatest number of lightning strikes in the world—usually in the afternoon, all year round in the equatorial zone, and in the long rainy season in the two tropical areas.

The country is largely occupied by the Congo River basin and its tributaries. Most of the country is located at an altitude of 300 to 800 meters above sea level. In some areas, such as the southeast, the altitude ranges from 800 to 1,300 meters, while in the easternmost part, near the Rift Valley lakes, there are also high mountain ranges. Rainfall averages between 1,000 and 1,700mm per year depending on the region.

Soil

The Congo River, including its 1,336,000square-mile (3,460,000square-km) basin, is the country’s largest drainage system. The river rises in the high Katanga plateaus and flows north and then south in a great arc, crossing the equator twice. The lower river flows south-westward to empty into the Atlantic Ocean below Matadi. Along its course, the Congo passes through alluvial lands and swamps and is fed by the waters of many lakes and tributaries. The most important lakes are Mai-Ndombe and Tumba; the major tributaries are the Lomami, Aruwimi, and Ubangi rivers and those of the great Kasai River system. In addition, the Lukuga River links the basin to the Western Rift Valley.

Soils are of two types: those of the equatorial areas and those of the drier savannah (grassland) regions. Equatorial soils occur in the warm, humid lowlands of the central basin, which receive abundant precipitation throughout the year and are covered mainly with thick forests. This soil is almost fixed in place because of the lack of erosion in the forests. In swampy areas the very thick soil is constantly nourished by humus, the organic material resulting from the decomposition of plant or animal matter. Savannah soils are threatened by erosion, but the river valleys contain rich and fertile alluvial soils. The highlands of the Great Lakes region in eastern Congo are partly covered with rich soil derived from volcanic lava. This is the country’s most productive agricultural area

Forests

About 45 percent of DRC is covered by primary forest which provides refuge for several large mammal species driven to extinction in other African countries. Overall, the country is known to have more than 11,000species of plants, 450 mammals, 1,150 birds, 300 reptiles, and 200 amphibians.

The greatest threats to DRC forests are subsistence and plantation agriculture, fuel wood collection, poaching, increased logging, mining, and hydroelectric projects. The DRC has 13 percent of the world’s hydroelectric potential, and infrastructure investments could rapidly drive new development, which has been stymied over the past 30 years by impassable roads, failing electricity grids, and crumbling transportation systems.

While overall national deforestation rates remain relatively low (estimated at 0.2 per cent per annum), in some parts of the country, notably in savannah and gallery forests and especially around urban centers, it is reaching high levels and posing a direct threat to drinking water sources.

Water resources and Irrigation

In the DRC’s administratively fragile context, uncontrolled land development activities pose a fundamental threat to strategic drinking water sources. Weak land-use planning and inadequate protection of critical water sources at all levels, from village springs to the intakes of water treatment plants, represent a direct risk to ongoing efforts to achieve MDG and PRSP water targets. The long-term sustainability of water infrastructure investments is frequently jeopardized by the resultant environmental degradation, exemplified by the Lukunga water treatment plant in Kinshasa. Given the urgency of the situation, interim priority measures need to be taken, namely securing the land area surrounding drinking water sources and implementing source-management plans at the micro-watershed level. More broadly, increasing deforestation and degradation of forest ecosystem services represents a direct threat to local community water supply and attainment of national and MDG water targets. This is particularly the case in rural areas, where more than 90 percent of the population depends on springs located in dense forests (both gallery and rainforest) 13.

Despite its immense freshwater resources, the overriding challenge for the DRC’s water sector is to improve its rapidly growing population’s access to safe drinking water. At least two decades of underinvestment, aggravated by conflict-related destruction of facilities, have left the country’s water infrastructure and services in a serious state of deterioration. Consequently, water access rates have undergone a dramatic decline from pre-conflict 1990 levels; the DRC’s current rate of around 26 per cent is one of the lowest in Sub-Saharan Africa. It is also significant that the enormous death toll from the “Congo wars” is mainly attributable to indirect public health effects, including inter alia those linked with the collapse of water and sanitation services.15

Possessing an estimated 52 percent of Africa’s surface water reserves (rivers, lakes, and wetlands), the DRC is the most water-rich country in Africa. Furthermore, the DRC alone accounts for an estimated 23 percent of Africa’s internal renewable water resources. Endowed with an average annual precipitation of around 6,000 billion m3, rainfall is regular and abundant (averaging 1,545 mm/year) but varies in space and time (800–1,800mm). The DRC also enjoys considerable water autonomy, with 70 percent (900km3/yr) of its total actual renewable water resources (estimated at 1,283 km3/year) generated internally from rainfall. The country’s bountiful water resources are intrinsically linked to its vast forests, which extend over 155.5 million ha.

Indeed, the vast majority of the population depends on springs located in dense forests (both gallery and rainforest), highlighting the importance of forest ecosystem services to local community water supplies.

CLIMATE SUMMARY

Meteorological observations across the DRC are scarce and offer limited information on the country’s climate variability, but three major climatic zones are recognized (see map and descriptions below).

Zone 1 – (South Kivu and parts of Kasai and Tanganyka) Tropical rainforests along the Congo River and its tributaries are characterized by two rainy seasons, occurring from March–May and September–December, followed by two short dry seasons in June–August and January– February. Average temperatures range from 24–25°C with limited variability throughout the year.

Zone 2 – (parts of Kasai) Mountainous terraces and dense grasslands with predominantly tropical wet and dry climates and a dedicated rainy season (July–August). Average temperatures range from 24–25°C with limited variability throughout the year.

Zone 3 – (parts of Kasai and Tanganyka) Subtropical climates of savannas in the south and southeast with a single rainy season occurring between December–February. Slightly lower but consistent temperatures range from 22–23°C.

IMAGE 1: DRC KOPPEN CLIMATE CLASSIFICATION

2.2 NATIONAL ENVIRONMENTAL POLICIES AND PROCEDURES

The Constitution Environmental law in DRC starts with the Constitution of the Third Republic, adopted on February 18, 2006. Article 53 states that every person has a right to a healthy environment, that the environment must be protected, and that the state is responsible for protecting the environment and the health of the people. Further, Article 123 makes provisions for laws to be made concerning the protection of the environment and tourism and Article 203 calls for cooperative governance between central and provincial administration to protect and conserve the environment, natural sites and landscapes.

The “Arrete ministeriel”( decree ministry) n*043/CAB/MIN/ECN-EF/2006 of the 8th December 2006 is related to the importance of the environmental and social impact assessment for all development project.

Environmental Impact Assessment (EIA) and Law No. 11/009. In 2003, a Mining Regulation that followed DRC’s Mining Code of 2002, required mining exploration and development projects to complete an EIA and public consultations. Approved in 2011, Law No. 11/009, entitled the Basic Fundamental Principles Relating to Environmental Protection, extended the regulatory framework beyond the mining sector by requiring that developers of industrial, commercial, agricultural, forestry, mining and telecommunications projects complete an Environmental and Social Impact Assessment (ESIA) and undertake public consultation. It also requires environmental audits;

environmental evaluation of policies, plans and programs; the creation of new institutional structures; and an Environmental Fund for research, conservation, clean-up operations, and rehabilitation and pollution prevention. However, this law does not provide guidance on types of projects subject to an ESIA, or details on development and validation of the ESIA.

The management of EIAs is the responsibility of the Ministry of Environment, Nature Conservation and Tourism (MENCT), but matters related to mining are under the responsibility of the Director of Protection of the Mining Environment (DPEM).

Chapters 5 and 6 of Law No. 11/009 are related to management and conservation of natural resources and the prevention of risks and control of pollution and other public nuisances. Chapter five holds the state responsible for the conservation and sustainable management of ecosystems, natural resources, and monuments, and specifically addresses preventing the degradation of land, soil and vegetation, as well as surface and groundwater. It also addresses the sustainable management of biodiversity and forests and prohibits activities that will negatively affect the environment in forbidden zones or protected areas.

Section 1 of chapter six addresses commercial industries, and requires a permit (either by the national or provincial government) in cases where activities will pose dangers for health, security or the environment, and requires that measures are put in place to avoid accidents or pollution that will have negative consequences for the environment or health. Section 2 addresses air, water, soil, odor, and noise pollution, and also mentions the use of pesticides, fertilizers and other techniques to ensure sustainable productivity of the soil. The remaining sections address the management of chemical products, waste, genetically modified organisms, and natural catastrophes.

Decree No. 14/019 dated August 02, 2014 set the rules on the functioning and the procedural mechanisms of the protection of the environment. A national agency named (Congolese Agency for Environment) has been created and has the mission to manage the EIA implementation in DRC.

In collaboration with all related services, the Agency shall develop and makes available to the public the Operations Manual and Implementation Procedures for environmental and social impact studies. The manual is not yet available

International Conventions. The DRC is party to the following international conventions: Ramsar (1994) for the protection of important wetlands, CITES (1975) for the conservation of threatened wildlife and plants, Convention on Biological Diversity (1992), World Heritage Convention (1975), and the African Convention on nature and natural resource conservation (1976).

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK

PROJECT/ACTIVITY 1: AGRICULTURE

TABLE 2A. POTENTIAL IMPACTS – PROJECT/ACTIVITY 1

Project/Activity Potential environmental and social impacts

1.1. Agriculture Research Agricultural Research may involve development and distribution of improved quality planting materials, equipping and renovating laboratories. New planting materials are of concern due to the potential to introduce invasive species that could lead to devastating impacts to the ecosystem.

Potential adverse impacts from agricultural research may include:

● Introduction of exotic and invasive species

● Introduction of GMO without appropriate regulatory framework

● Destruction or degradation of natural habitat, including deforestation, desertification and drainage of wetlands

● Loss of biodiversity

● Introduction of exotic and non-native animal

● Siltation of water bodies

● Reduction in water quality or changes in local hydrology e.g. contamination of environment, especially soil and water through inappropriate agrochemical use.

Additionally, the proposed activity may involve construction.

Construction itself has a well-known set of potential adverse impacts, including the following:

● Disturbance to existing landscape/habitat.

Construction typically necessitates clearing, grading, trenching and other activities that can result in near-complete disturbance to the pre-existing landscape/habitat within the plot. If the plot contains or is adjacent to a permanent or seasonal stream/water body, grading and leveling can disrupt local drainage.

● Sedimentation/fouling of surface waters. Runoff from cleared ground or materials stockpiles during construction can result in sedimentation/fouling of surface waters, particularly if the site is located in close proximity to a stream or water body.

● Standing water. Construction may result in standing water on-site, which readily becomes breeding

Project/Activity Potential environmental and social impacts habitat for mosquitoes and other disease vectors;

this is of particular concern as malaria is endemic in many areas of the DRC.

● Impacts of facilities in operation: In operation, general/institutional facilities & compounds generate a set of waste streams (e.g. gray water, latrine discharge, solid waste).

In general, if improperly managed, such wastes can contaminate ground and surface water, create breeding habitat for disease vectors, etc. For example, failure to design or maintain appropriate drainage structures can result in standing water within the compound or on adjacent land. Local erosion, including damage to adjacent fields, and sedimentation of nearby surface waters can also result. If latrine design or a maintenance failure permits insects or other disease vectors free in-and-out access to the pit/tank, pathogens in human waste can be spread within the compound and to the nearby community. Similarly, spilling latrine waste during pump-out releases contained pathogens into the environment. Storing solid waste (usually a mixture of food scraps, packaging, and paper) in open containers creates breeding habits for and attracts disease vectors such as rodents.

1.2. Increase Technology Piloting, Increased technology may encourage the intensification or intensification of the agricultural sector with risks and impacts on environment including erosion, reduced soil fertility, introduction of invasive species and impacts on human health from use of agrochemicals and social impact such as overuse of human workforce.

● Also, the activity may lead to unfair competitiveness with negative impact on small business.

1.3. Market linkage facilitation ● On one hand Private sector investment into crops in high demand or with high market value may encourage intensification of agriculture production with risks and impacts on environment including erosion, overuse of soil fertility and agrochemicals, introduction of invasive species impacts on human health, overuse of human workforce.

● On the other hand, the activity may link local business to investors with unsound environmental and social practices thus pose a reputational risk on

USAID.

● Also, the activity may lead to unfair competitiveness with negative impact on small business.

1.4. Value chain development By promoting…