Attachment J.1 - IEE - RFP. Amendment 1.pdf

AFR/RWANDA/PROSPER IEE

NOVEMBER 2021

INITIAL ENVIRONMENTAL

EXAMINATION

PROJECT/ACTIVITY DATA

Project/Activity Name: Rwanda PROSPER IEE Geographic Location(s) (Country/Region): Rwanda Amendment (Yes/No), if Yes indicate # (1, 2...): No Implementation Start/End Date (FY or M/D/Y): 10/2021 – 1/ 2027 Solicitation/Contract/Award Number(s):

Implementing Partner(s): Multiple Bureau Tracking ID: Rwanda PROSPER IEE https://ecd.usaid.gov/document.php?doc_id=54444 Tracking ID of Related RCE/IEE (if any):

Tracking ID of Other, Related Analyses: Rwanda S-Time IEE;

https://ecd.usaid.gov/document.php?doc_id=41061

Partnership for Inclusive Agricultural Transformation in Africa (PIATA) PIEE;

https://ecd.usaid.gov/document.php?doc_id=49883

DCN, BFS-17-02-001

World Bank Environmental Assessment https://projects.worldbank.org/en/projects-operations/document-detail/P126498?type=projects

Employment and Economic Empowerment of Youth with Disabilities (EYD) RCE:

https://ecd.usaid.gov/document.php?doc_id=53099

COVID Economic Recovery Fund (ERF) RCE:

https://ecd.usaid.gov/document.php?doc_id=53232

Employment and Entrepreneurship (E&E) IEE:

https://ecd.usaid.gov/document.php?doc_id=53235

Rwanda Private Sector Driven Agricultural Growth (PSDAG) Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP)_ https://ecd.usaid.gov/repository/pdf/46391.pdf

Ministry of Agriculture and Animal Resources Rwanda Feeder Road Development Project ESMP_Rwanda Feeder Roads Development Project - Additional Finance.pdf - Google Drive

NOVEMBER 2021

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit(s):

(e.g., Mission or Bureau or Office)

USAID/Rwanda

Other Affected Operating Unit(s):

Lead BEO Bureau: AFR/SD Funding Account(s) (if available):

Original Funding Amount: $134 Million Prepared by: USAID/Rwanda: Jean Damascene Nyamwasa, Evan Meyer, ECOS: Jaime Capron, Josh Habib, Shamim Niazi

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): January, 2027 Additional Analyses/Reporting Required: EMMP, WQAP Climate Risks Identified (#): Low ___4___ Moderate ___3___ High ___1___ Climate Risks Addressed (#): Low ___NA___ Moderate ___3___ High ___1___

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

PROJECT/ACTIVITY SUMMARY

To build the capacity of Rwanda’s economy, citizens, and governance institutions, and assist the country to become more self-reliant, the focus of the PROSPER economic growth strategy will shift towards commercializing agriculture, enabling the growth of small and medium businesses, and greater inclusion of, and opportunities for, youth and women. PROSPER will unlock the growth potential of Rwanda to become a knowledge-based, middle-income country by addressing binding constraints to inclusive and sustainable growth. Under Intermediate Result (IR) 1, PROSPER will focus on improving the enabling environment for private sector competitiveness by strengthening financial markets, improving the overall policy framework for enterprise development, and fostering evidence-based dialogue on key reform actions in agriculture and other sectors. PROSPERs IR 2 approach will increase access to and adoption of productivity enhancing technologies, expand access to and responsiveness of agriculture markets, and foster diversification into new high-value and/or highly nutritious agricultural products. Opportunities for youth employment and entrepreneurship in Rwanda are severely limited, so under IR 3, PROSPER will bring Rwanda’s youth and women into the mainstream of economic opportunity, through employment, innovation, skills-building, and access to finance.

NOVEMBER 2021

ENVIRONMENTAL DETERMINATIONS

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

(22 CFR 216).

There are 17 Mechanisms/Awards discussed under this IEE, three of which closed in 2020, four of which are analyzed under individual award level IEEs/RCEs, one of which is implemented by a Public International Organization (PIO) and is subject to the World Bank’s environmental procedures, and nine of which are analyzed by this IEE. The nine mechanisms evaluated under this IEE include:

● Mechanism 1: Hinga Weze (formerly) Feed the Future (FtF) Sustainable Food, Agriculture and Nutrition [SFAN])

● Mechanism 2: Huguka Dukore Akazi Kanoze

● Mechanism 3: Nguriza Nshore (formerly FtF Farm to Market: Technology, Inclusion, Microfinance and Engagement [FARMTIME])

● Mechanism 4: Orora Wihaze (formerly Rwanda Increased Protein for Dietary Diversity

[RIPDD])

● Mechanism 5: Ongera Ubucuruzi (formerly Trade Infrastructure Project 2)

● Mechanism 6: FtF Facilitate Investment Required or Sustainable Export (FIRST)

● Mechanism 7: Modernizing Agriculture

● Mechanism 8: New Trade Activity (name TBD – Mechanism 5 Follow-on)

● Mechanism 9: Policy & Enabling Environment Activity (name TBD)

Intervention Categories:

● Intervention Category 1: Programs involving nutrition, health care, or population and family planning

● Intervention Category 2: Education, technical assistance, or training programs;

research workshops and meetings; projects/programs intended to develop the capability of recipient countries to engage in development planning

● Intervention Category 3: Support to small and medium agro-enterprise (including livestock), postharvest handling/storage, and support for climate smart ag and natural resource NRM practices

● Intervention Category 4: Activities associated with agricultural inputs such as seed production and supply, seed marketing, planting materials, fertilizers, and pesticides

● Intervention Category 5: Provision of grants to Civil Society Organizations (CSOs), community-based organizations and private business

● Intervention Category 6: Policy reform, review, and advocacy in agricultural marketing and trade; financial reforms/support mechanisms

● Intervention Category 7: Small-scale construction and rehabilitation

● Intervention Category 8: Small-scale irrigation1

1 Affecting surface area of less than 25ha, or less than $250,000 total investment. USAID/Rwanda does not expect to provide direct funding for terraces; instead, facilitation and technical assistance is expected (and possibly a matching grant in a trust fund).

NOVEMBER 2021

TABLE 1: ENVIRONMENTAL DETERMINATIONS

Intervention Categories Categorical Exclusion Citation (if applicable)

Negative Determinatio n

Positive Determination

Deferral

Intervention Category 1:

Programs involving nutrition, health care, or population and family planning

§216.2(c)(2)(viii) ☐ ☐ ☐

Intervention Category 2:

Education, technical assistance, or training programs except to the extent programs include activities directly affecting the environment; analyses, studies, academic or research workshops and meetings;

projects/programs intended to develop the capability of recipient countries to engage in development planning

§216.2(c)(2)(i, iii, xiv) ☐ ☐ ☐

Intervention Category 3:

Support to small and medium agro-enterprise (including livestock), postharvest handling/storage, and support for climate smart ag and NRM practices

Intervention Category 4:

Activities associated with agricultural inputs such as seed production and supply, seed marketing, planting materials, fertilizers, and pesticides

Intervention Category 5:

Provision of grants to CSOs, community-based organizations and private business

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

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

NOVEMBER 2021

Intervention Category 6:

Policy reform, review, and advocacy in agricultural marketing and trade;

financial reforms/support mechanisms

Intervention Category 7:

Small-Scale Construction

Intervention Category 8:

Small-Scale Irrigation (Affecting surface area of less than 25ha, or less than $250,000 total investment)

Note: Development Credit Authority initiatives (DCAs) – which will occur under PROSPER – are now governed by the Development Finance Corporation (DFC). DFC follows International Finance Corporation (IFC) environmental and social standards. The A/COR is responsible for ensuring that the activity complies with DFC’s Environmental Compliance Procedures before proceeding with this activity.

TABLE 2: LIST OF MECHANISMS CROSS-WALKED WITH THE INTERVENTION

CATEGORIES

Activity Name/Award number

Status Governing EC Document

Intervention Categories

Determination(s)

1. Hinga Weze (Ftf

SFAN)

Continuing This IEE 1, 2, 3, 4, 5, 7, 8 CE, ND w/ C

2. Huguka Dukore Akazi Kanoze

Continuing This IEE 2, 4, 5 CE, ND w/ C

3. Nguriza Nshore (FtF FARMTIME)

Continuing This IEE 2, 3, 4, 5, 6 CE, ND w/ C

4. Orora Wihaze (formerly Rwanda Increased Protein for Dietary Diversity [RIPDD])

Continuing This IEE 1, 3, 4, 5, 6, 7 CE, ND w/ C

5. Ongera Ubucuruzi (formerly Trade Infrastructure Project 2)

Continuing This IEE 2, 3, 6 CE, ND w/ C

6. FtF Facilitate Investment Required for Sustainable Export (FIRST)

Continuing This IEE 6 ND w/ C

7. Modernizing Agriculture

New This IEE 3, 4, 5, 7, 8 ND w/ C

NOVEMBER 2021

8. New Trade Activity (name TBD – Mechanism 5 Follow-on)

New This IEE 2,3,6 CE, ND w/ C

9. Policy & Enabling Environment Activity

New This IEE 6 ND w/ C

10. Tera Imbuto Nziza

Continuing PIATA PIEE NA NA

11. Rural Feeder Roads (RFR) PIO

Continuing WB Environmental Assessment

NA NA

12. Employment and Economic Empowerment of Youth with Disabilities (EYD)

New EYD RCE NA NA

13. COVID

Economic Recovery Fund

(ERF)

New ERF RCE NA NA

14. Employment and Entrepreneurship (E&E)

New E&E IEE NA NA

15. Borlaug Higher Education for Agricultural Research Development

(BHEARD)

Closed -- -- --

16. Access Finance Rwanda

(AFR)

Closed -- -- --

17. Tworore Inkoko, Twunguke

(TI)

Closed -- -- --

CLIMATE RISK MANAGEMENT

Section 4.2 summarizes the methodology used and findings of the Climate Risk Management (CRM) Screening, in accordance with ADS 201mal. The project design team, in consultation with the Climate Integration Lead (CIL), considered the potential effect of climate risks/stressors on the sustainability of the project (changing precipitation patterns, rising temperature, floods, droughts, fires, landslides, etc.). See Annex 1 for the complete CRM table.

NOVEMBER 2021

BEO SPECIFIED CONDITIONS OF APPROVAL

Reporting Conditions: 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 documents should be uploaded into the appropriate sub-folder(s) of this Google Drive folder:

https://drive.google.com/drive/folders/18ALBmGanoidfCmU9nk2CqkGPV6rcRI1j

Use of this folder will facilitate access by all parties who need these documents, including the Mission Environmental Officer and the AOR/COR. This access 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.

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:

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

o Applicable COVID-19 guidance from local authorities;

o 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.

NOVEMBER 2021

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION

PROJECT NAME: Rwanda PROSPER

Bureau Tracking ID: https://ecd.usaid.gov/document.php?doc_id=54444

Approval: Cleared 11/11/2021 Jonathan Kamin, Mission Director Date

Clearance: Cleared 11/03/2021 Evan Meyer, Project Manager Date

Clearance: Cleared 11/03/2021 Jean Damascene Nyamwasa, Mission Environmental Officer and Climate Integration Lead

Date

Clearance: Cleared 11/04/2021 David Kinyua, Regional Environmental Advisor Date

Clearance: Cleared 11/08/2021 Stephanie Altman, Regional Legal Officer Date

Clearance: Cleared 12/17/2021 Colin Quinn, Climate Integration Lead Date

Concurrence: 12/17/2021 Brian Hirsch, Africa Bureau Environmental Officer Date

DISTRIBUTION:

NOVEMBER 2021

INITIAL ENVIRONMENTAL

EXAMINATION

CONTENTS

1.0 PROJECT/ACTIVITY DESCRIPTION 1

1.1 PURPOSE OF the IEE 1

1.2 PROJECT OVERVIEW 1

1.3 INTERVENTION AND SUB-INTERVENTION CATEGORIES 2

2.0 BASELINE ENVIRONMENTAL INFORMATION 3

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT,

PHYSICAL, CLIMATE, SOCIAL, Threatened and ENDANGERED species) 3

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER

INTERNATIONAL STANDARDS (E.G. WHO), ENVIRONMENTAL AND SOCIAL LAWS,

POLICIES, AND REGULATIONS 4

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK 5

INTERVENTION CATEGORY 1: PROGRAMS INVOLVING NUTRITION, HEALTH CARE,

OR POPULATION AND FAMILY PLANNING 5

INTERVENTION CATEGORY 2: EDUCATION, TECHNICAL ASSISTANCE, OR TRAINING

PROGRAMS; WORKSHOPS AND MEETINGS; PROJECTS INTENDED TO DEVELOP THE

CAPABILITY OF RECIPIENT COUNTRIES TO ENGAGE IN DEVELOPMENT PLANNING 6

INTERVENTION CATEGORY 3: SUPPORT TO SMALL AND MEDIUM AGRO-ENTERPRISE

(INCLUDING LIVESTOCK), POSTHARVEST HANDLING/STORAGE, AND SUPPORT FOR

CLIMATE SMART AG AND NRM PRACTICES 6

INTERVENTION CATEGORY 4: ACTIVITIES ASSOCIATED WITH AGRICULTURAL

INPUTS SUCH AS SEED PRODUCTION AND SUPPLY, SEED MARKETING, PLANTING

MATERIALS, FERTILIZERS, AND PESTICIDES 12

INTERVENTION CATEGORY 5: PROVISION OF GRANTS TO CSOS, COMMUNITY-

BASED ORGANIZATIONS AND PRIVATE BUSINESS 14

INTERVENTION CATEGORY 6: POLICY REFORM, REVIEW, AND ADVOCACY IN

AGRICULTURAL MARKETING AND TRADE. FINANCIAL REFORMS/SUPPORT

MECHANISMS 14

INTERVENTION CATEGORY 7: SMALL-SCALE CONSTRUCTION 15

INTERVENTION CATEGORY 8: SMALL-SCALE IRRIGATION 17

4.0 ENVIRONMENTAL DETERMINATIONS 19

4.1 RECOMMENDED ENVIRONMENTAL DETERMINATIONS 19

4.2 CLIMATE RISK MANAGEMENT 20

5.0 CONDITIONS AND MITIGATION MEASURES 21

5.1 CONDITIONS 21

5.2 AGENCY CONDITIONS 23

NOVEMBER 2021

5.3 MITIGATION MEASURES 23

6.0 LIMITATIONS OF THIS INITIAL ENVIRONMENTAL EXAMINATION 43

7.0 REVISIONS 44

ATTACHMENTS: 44

ANNEX 1. PROJECT CLIMATE RISK MANAGEMENT SUMMARY TABLE 45

ANNEX 2: ENVIRONMENTAL REVIEW FORM 63

ANNEX 3: MECHANISMS COVERED UNDER THE PROSPER PROGRAM 72

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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 intervention 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 must be addressed through formal environmental mitigation and monitoring plans (EMMPs) and, if needed, Environmental Assessments (EAs).

1.2 PROJECT OVERVIEW

To build the capacity of Rwanda’s economy, citizens, and governance institutions and assist the country to become more self-reliant, the focus of the PROSPER economic growth strategy will shift towards commercializing agriculture, enabling the growth of small and medium businesses, and greater inclusion of and opportunities for youth and women. PROSPER will unlock the growth potential of Rwanda to become a knowledge-based, middle-income country by addressing binding constraints to inclusive and sustainable growth. Under IR 1, PROSPER will focus on improving the enabling environment for private sector competitiveness by strengthening financial markets, improving the overall policy framework for enterprise development, and fostering evidence-based dialogue on key reform actions in agriculture and other sectors. PROSPERs IR 2 approach will increase access to and adoption of productivity enhancing technologies, expand access to and responsiveness of agriculture markets, and foster diversification into new high-value and/or highly nutritious agricultural products.

Opportunities for youth employment and entrepreneurship in Rwanda are severely limited, so under IR 3, PROSPER will bring Rwanda’s youth and women into the mainstream of economic opportunity, through employment, innovation, skills-building, and access to finance.

There are 15 Mechanisms/Awards Under the PROSPER Program, three of which closed in 2020, four of which are analyzed under individual award level IEEs/RCEs, one of which is a PIO subject to the World Bank’s environmental procedures, and seven of which are analyzed by this IEE. The mechanisms evaluated under this IEE include:

● Mechanism 1: Hinga Weze (formerly) FtF Sustainable Food, Agriculture and Nutrition

[SFAN])

● Mechanism 2: Huguka Dukore Akazi Kanoze

● Mechanism 3: Nguriza Nshore (formerly FtF Farm to Market: Technology, Inclusion, Microfinance and Engagement [FARMTIME])

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● Mechanism 4: Orora Wihaze (formerly Rwanda Increased Protein for Dietary Diversity

[RIPDD])

● Mechanism 5: Ongera Ubucuruzi (formerly Trade Infrastructure Project 2)

● Mechanism 6: FtF Facilitate Investment Required or Sustainable Export (FIRST)

● Mechanism 7: Modernizing Agriculture

● Mechanism 8: New Trade Activity (name TBD – Mechanism 5 Follow-on)

● Mechanism 9: Policy and Enabling Environment Activity (name TBD)

1.3 INTERVENTION AND SUB-INTERVENTION CATEGORIES

TABLE 3: DEFINED INTERVENTIONS AND SUB-INTERVENTIONS

Intervention Cat 1. Programs involving nutrition, health care, or population and family planning Sub-Intervention (Sub-Int) 1.1 Nutrition promotion activities through behavior change communication and nutrition training Intervention Cat. 2. Education, technical assistance, or training programs; workshops and meetings; projects intended to develop the capability of recipient countries to engage in development planning Sub-Int 2.1 Technical assistance (TA) and capacity building to central government (Rwanda Agriculture Board, Rwanda Cooperative Agency), local government institutions Sub-Int 2.2 TA and capacity building to communities’ organizations and the private sector Sub-Int 2.3 Market research and information sharing Sub-Int 2.4 Work readiness training, technical training, job intermediation services, loan facilitation, mobilization of savings and loans groups, financial literacy training, coaching, mentoring, capacity building, certification & accreditation, curriculum revision, monitoring and evaluation, strengthening of linkages and referral networks, development of online resources, counseling, and compilation of information Intervention Cat. 3. Support to small and medium agro-enterprise (including livestock), postharvest handling/storage, and support for climate smart agriculture and NRM practices Sub-Int 3.1 Support to extension services, technical assistance and capacity building to farmers Sub-Int 3.2 Support to small, and medium enterprises (SME), including Business Development Services (BDS) geared towards cooperative development; strengthen ties between value chain actors and market linkages; support to public private partnership activities Sub-Int 3.3 Support for climate smart agriculture and natural resource management approaches (including: soil erosion control including terracing, creating contour barriers including live barriers, agroforestry) Sub-Int 3.4 Use of Information and Communication Technology (ICT) including apps that provide extension information on specific crops or access to precise weather, climate, and soil moisture data Sub-Int 3.5 Support the promotion of agribusiness technologies including post-harvest, handling, and storage at cooperative level; small agro-processing Sub-Int 3.6 Demonstration of model farms for different type of livestock (poultry, fish, pigs, rabbits and goats) Intervention Cat. 4. Activities associated with agricultural inputs such as seed production and supply, seed marketing, planting materials, and fertilizers Sub-Int 4.1 Promotion of agriculture inputs, including high yielding seeds, fertilizers, and nutrients Sub-Int 4.2 Distribution and training on use of improved agricultural technologies (i.e., seeds that are drought tolerant and pest and disease resistant, mulching, cover cropping, small-scale mechanization, building green houses, measured use of organic and chemical fertilizers) Sub-Int 4.3 Demonstration plots for different type of fertilizers and nutrients Intervention Cat. 5. Provision of grants to CSOs, community-based organizations, SM E development, and private business Sub-Int 5.1 Provide sub-grants activities to local CSOs and national CSOs Sub-Int 5.2 Provision of small grants to community-based organizations and private businesses (e.g., micro-franchises)

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Intervention Cat. 6. Policy reform, review, and advocacy in agricultural marketing and trade.

financial reforms/support mechanisms Sub-Int 6.1 Support agricultural development policies and agribusiness standards Sub-Int 6.2 Research development for policy reforms Sub-Int 6.3 Facilitation of inclusive policy reforms drawing on evidence-based analysis and strengthened advocacy capacity within private sector organizations Sub-Int 6.4 Support relevant policy reform efforts and public-private dialogue Sub-Int 6.5 Assist the Government of Rwanda (GOR) to develop and strengthen financial de-risking and bond instruments Sub-Int 6.6 Support of local actors (government and private sector) to attract, mobilize, and direct public and private financing resources. Interventions will address gaps identified in the areas of investment promotion and mobilization among the Government of Rwanda (GOR) agencies and within their investment programs (including the Export Growth Fund, Horticulture Development Fund, the agricultural risk sharing facility, etc.)

Intervention Cat. 7. Small-Scale Construction Sub-Int 7.1 Small-scale construction of cold storage facilities Sub-Int 7.2 Small-scale construction (total surface area disturbed is 1000 m2 or less) of small slaughtering facilities; small agro processing facilities, etc.

Intervention Cat. 8. Small-Scale Irrigation4 Sub-Int 8.1 Distribution and training on use of improved water management technologies (i.e.. solar irrigation pumps and drip irrigation, water catchment ponds to store water) Sub-Int. 8.2 Construction of small-scale irrigation systems

Will this project/activity involve construction5 as defined by ADS 201 and 303? Yes ☒ No ☐

4 Affecting a surface area of less than 25ha, or less than a $250K investment.

5 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:

Small-scale irrigation systems (e.g. water catchment ponds, drip irrigation, solar irrigation pumps), small-scale WASH systems (e.g., latrines, boreholes), cold storage facilities, small slaughtering facilities, and agro-processing facilities.

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2.0 BASELINE ENVIRONMENTAL INFORMATION

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT, PHYSICAL,

CLIMATE, SOCIAL, THREATENED AND ENDANGERED SPECIES)

The Rwandan relief is hilly and mountainous with an altitude averaging 1,700 meters. The highest point on Mt Karisimbi is 4,507 meters above sea level. Rwanda has volcanic mountains at the northern fringe and undulating hills in most of the central plateau. However, the eastern part of the country is relatively flat with altitudes well below 1,500 meters. This relief pattern gives Rwanda a mild and cool climate that is predominantly influenced by altitude. Average annual temperatures are about 19.1oC and average rainfall is about 1,250 mm per annum. The lowlands of the southwest in Bugarama plain with an altitude of 900m are part of the tectonic depression of the African Rift Valley.

A recent mapping inventory of forests with a surface of 0.5 hectares (ha) or higher and with coverage of more than 20% indicated that Rwanda has an estimated 240,746 ha of forests. This is approximately 10% of the surface of the national dry lands (23,835 square km). Rwanda forests and woodlands fall into four categories: the natural forests of the Congo Nile Ridge comprised with Nyungwe National Park (NNP) Gishwati, and Mukura; the natural forests of the Volcano National Park (VNP); the natural forests in savannah and gallery-forest of the Akagera National Park (ANP) and remnants of gallery-forests and savannahs of Bugesera, Gisaka and Umutara; and forest plantations dominated by exotic species (Eucalyptus spp, Pinus spp, Grevillea robusta, etc.) and trees scattered on farmlands (agroforestry) and along anti-erosion ditches.

Rwanda has four types of protected areas which include national parks (Akagera National Park, Nyungwe National Park and Volcanoes National Park); forest reserves (Gishwati forest, Iwawa Island forest and Mukura forest); forests of cultural importance (Buhanga forest); and wetlands of global importance (Rugezi- Bulera-Ruhondo wetland complex). Besides those forests with a legal status of protected areas, there are other forests of cultural importance (Busaga forest in Muhanga district) and other remnants natural forests which are protected by law.

Rwanda’s hydrological network includes numerous lakes and rivers and its associated wetlands.

The major lakes include Kivu, Bulera, Ruhondo, Muhazi, Cyohoha, Sake, Kilimbi, Mirayi, Rumira, Kidogo, Mugesera, Nasho, Mpanga, Ihema, Mihindi, Rwampanga and Bisoke. The major rivers include the Akagera, Akanyaru, Base, Kagitumba, Mukungwa, Muvumba, Nyabarongo, and Ruvubu in the Nile Basin and Koko, Rubyiro, Ruhwa, Rusizi, Sebeya in the Congo Basin.

A 2008 inventory of wetlands was conducted by Rwanda Environment Management Authority (REMA) through Integrated Management of Critical Ecosystems (IMCE) project funded by the Global Environment Facility (GEF) and World Bank. This inventory showed that Rwanda has 860 marshlands and 101 lakes covering a total surface of 278,536 ha (10.6 percent of the country surface area), and 149,487 ha, respectively. The inventory also found 861 rivers totaling 6,462 km in length. Further, 41 percent of the inventoried marshlands are covered by natural vegetation, 53 percent are under cropping, and about 6 percent are fallow fields. The biggest

OCTOBER 2021

marshlands are associated with and clustered around the rivers. Rugezi and Kamiranzovu are high altitude wetlands, most of the others are low altitude.

Despite the important gains that have been made for protecting the environment in recent years, significant threats to environmental well-being remain prominent. The most significant threats to the environment include: agricultural inefficiencies (e.g., excess land/forest clearing, intensive use of pesticides) and soil erosion; population pressure; institutional weaknesses and inefficiencies; energy pressure; degradation of wetlands and lack of clean water; and waste disposal issues.

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER INTERNATIONAL

STANDARDS (E.G. WHO), ENVIRONMENTAL AND SOCIAL LAWS, POLICIES, AND REGULATIONS

The Rwanda constitution addresses certain environmental dimensions, including environmental impact Article 48 states: ‘Any citizen has a right to a safe environment, satisfying and sustainable. Any person has the duty of protecting, maintaining, and promoting the environment.

Any act aiming at damaging the environment is punished by the law. The state must protect the environment.’ Later, article 192 forbids any accords authorizing the storing on the Rwandan territory of toxic waste and other substances, which may dangerously damage the environment.

It states: ‘Accords on installation of military barracks on the national territory and those authorizing the storage of toxic waste and other substances which are dangerous for the environment are prohibited (Government of Rwanda, 2017).’

Rwanda has made significant progress to establish a stronger foundation for its environmental activities. Some of the important changes that have impacts on the environment include:

● Green Growth and Climate Resilience Strategy (2011)

● Environment and Climate Change Policy (2019)

● Passage of the Organic Law No. 04/2005; Establishment of the Rwanda Environmental

Management Authority (REMA) under Law No. 08/2006;

● Implementation of a government Decentralization Policy and legislation;

● Development and implementation of a land reform process; and

● Provision to the public and private sectors with tools that require the environment to be an integral part of the solutions to critical economic issues with the implementation of the Economic Development and Poverty Reduction Strategy (EDPRS).

The Organic Law on environment is the most significant baseline conservation legislation since 2004. This law serves to: conserve the environment, people and their habitats; set up fundamental principles related to protection of environment; discourage any activities that may degrade the environment; promote the social welfare of the population while considering equal distribution of the existing wealth; consider the durability of the resources with a special emphasis on equal rights to present and future generations; guarantee to all Rwandans sustainable development which does not harm the environment and the social welfare of the population; and establish strategies of protecting and reducing negative effects on the environment and improving/restoring the degraded environment. Additional publications and resources can be found at the Ministry of Agriculture and Animal Resources (MINAGRI) https://www.minagri.gov.rw/.

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3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK

INTERVENTION CATEGORY 1: PROGRAMS INVOLVING NUTRITION, HEALTH CARE, OR

POPULATION AND FAMILY PLANNING

TABLE 4A. POTENTIAL IMPACTS – Intervention Category 1

Sub-Intervention Categories Potential environmental and social impacts Sub-Intervention 1.1 Nutrition promotion activities through behavior change communication and nutrition training

Limited anticipated environmental and social impacts.

INTERVENTION CATEGORY 2: EDUCATION, TECHNICAL ASSISTANCE, OR TRAINING

PROGRAMS; WORKSHOPS AND MEETINGS; PROJECTS INTENDED TO DEVELOP THE

CAPABILITY OF RECIPIENT COUNTRIES TO ENGAGE IN DEVELOPMENT PLANNING

TABLE 4B. POTENTIAL IMPACTS – Intervention Category 2

Sub-Intervention 2.1 Technical assistance (TA) and capacity building to central government (Rwanda Agriculture Board, Rwanda Cooperative Agency), local government institutions

Limited anticipated environmental and social impacts.

Sub-Int 2.2 TA and capacity building to communities’ organizations and the private sector Sub-Intervention 2.3 Market research and information sharing Sub-Intervention 2.4 Work readiness training, technical training, job intermediation services, loan facilitation, mobilization of savings and loans groups, financial literacy training, coaching, mentoring, capacity building, certification & accreditation, curriculum revision, monitoring and evaluation, strengthening of linkages and referral networks, development of online resources, counseling, and compilation of information

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INTERVENTION CATEGORY 3: SUPPORT TO SMALL AND MEDIUM AGRO-ENTERPRISE

(INCLUDING LIVESTOCK), POSTHARVEST HANDLING/STORAGE, AND SUPPORT FOR CLIMATE

SMART AG AND NRM PRACTICES

TABLE 4C. POTENTIAL IMPACTS – INTERVENTION CATEGORY 3

Sub-intervention 3.1: Support to extension services, technical assistance and capacity building to farmers

Sub-intervention 3.2: Support to small, and medium enterprises (SME), including Business Development Services (BDS) geared towards cooperative development; strengthen ties between value chain actors and market linkages; support to public private partnership activities

Sub-intervention 3.3: Support for climate smart agriculture and natural resource management approaches (including: Soil erosion control including terracing, creating contour barriers including live barriers, agroforestry)

Sub-Int 3.4: Use of ICT including apps that provide extension information on specific crops or access to precise weather, climate, and soil moisture data

Activities that directly or indirectly support intensification of agricultural production may contribute to the following adverse impacts:

Environmental Impacts:

Land conversion. Clearing of land for agricultural production can contribute to change and fragmentation of landscape, to altering microclimates at forest edges, and to isolating animal populations. Agricultural actions can lead to encroachment into marginal lands, such as hills, wetlands, shallow lakes, and protected areas, and to land degradation.

Loss of natural habitat and biodiversity. Land conversion can adversely affect natural habitats with impacts on all living organisms and biodiversity.

Loss of vegetation. Where agricultural lands are expanded, vegetative strips may be destroyed. Agricultural crop production that requires land expansion may require clearing of forests or brush or conversion of grasslands. Clearing of pristine or fully-grown forest and utilizing grasslands for agricultural production can result in increased erosion, loss of biodiversity, decreased rainwater infiltration into aquifers, increased soil temperatures, and reduced buffering against floods and droughts.

Introduction of non-native species. Unconsidered introduction of non-native species that are new to a given ecological zone, such as crops, trees, cover crops, hedges, and windbreaks, riparian buffers, and other intentionally introduced species present risks that the species will become disruptive or invasive.

Introduced exotic species may spread diseases, out-compete native species for resources, become feral, become pests, or interbreed with native species.

Soil erosion. Crop production practices can be the direct cause of soil erosion as well as exacerbate water and wind erosion. As the soil erodes it stores less carbon, becomes less productive, absorbs less water and the excess runs off. This runoff removes the fertile topsoil necessary for crop production reducing crop yields and can have serious off-site consequences, including gully formation, landslides, siltation and sedimentation of water

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bodies, downstream flooding, and damage to productive infrastructure.

Siltation of water bodies. Eroded topsoil is carried by runoff into water bodies. Once in the slower-moving water, the soil settles, altering the terrain, water depth and water clarity, potentially causing harm to fish and bottom-dwelling populations. Siltation can intensify downstream flooding by reducing channel capacity and can also fill the upstream areas behind a dam. Siltation may then require repeated dredging that is an expensive process with its own potential environmental impacts. Siltation in wetlands and coastal areas can reduce productivity and marine populations. Large-scale siltation impairs shipping and river transport, flood control, the efficiency of dams, fisheries and aquaculture, urban sewage treatment, and drinking water supplies.

Reduction in soil fertility. Soil fertility is dependent on three major nutrients (nitrogen, phosphorus and potassium), various trace elements, and organic matter (carbon) content. A productive soil contains sufficient quantities of each of these elements for high crop yields. However, when soils are not managed appropriately, nutrient and soil carbon levels can decrease resulting in less productive soils. The subsequent decline in soil fertility often occurs in conjunction with soil erosion, with each problem exacerbating the other.

Social Impacts:

Crop production systems have social impacts that may particularly affect women and children. These may include labor issues such as an underpaid or underrepresented labor force, land ownership, water use issues, and related conflicts.

Sub-Int 3.5: Support the promotion of agribusiness technologies including post-harvest, handling, and storage at cooperative level;

small agro processing

The environmental and social impacts of post-harvest value adding activities, such as produce harvesting, handling, consolidating, packaging, storing, transporting, and processing will depend on the specific nature and scale of the activities. In general, while each small enterprise engaged in the value-added processing activities may not impact the environment significantly, cumulatively, adverse impacts can become significant.

The impacts of post-harvest and food processing activities are inextricably linked to agricultural production and nutrition, including the following adverse impacts:

Agribusiness enterprises (e.g., waste, water management).

Agricultural processing can be a source of significant adverse environmental impacts. Various food processing, handling, OCTOBER 2021 storing, and packaging operations can require significant use of water resources and can create wastes of different quality and quantity, which, if not managed or treated properly, could lead to increasing disposal and pollution problems. Additionally, if not recovered by appropriate technologies for upgrading, bioconversion and reutilization, food processing wastes can represent a loss of valuable biomass and nutrients.

Solid waste generation. Food processing will likely result in the generation of organic wastes and potentially inorganic wastes.

For example, organic wastes may include maize cobs and husks or fruit peels, and inorganic waste may include packaging boxes and plastic bags and wraps. Spoiled products, if not properly managed and/or disposed of can become hazardous for human or animal consumption.

Liquid waste generation. Liquid wastes from food washing and processing contain significant quantities of organic matter, and inorganic matter including biological and chemical contaminants, for example from produce washing or meat processing. Liquid wastes if improperly managed and/or disposed of can generate standing water that will become a breeding ground for disease vectors. When reaching groundwater and surface water, liquid waste can create pockets of pollution.

Liquid pollution can result in changes in water pH, temperature, quality (i.e., increased particulate matter, chemical or biological pollutants) and increased nitrogen and phosphorus loads that lead to eutrophication, and long-term problems associated with toxicity of organic compounds and heavy metals that are discharged.

Energy and water consumption. Processing, storage, and transportation of agricultural produce requires energy, water, and natural resources consumption that can have adverse impacts on the environment. For example, equipment such as pumps that are of poor quality have lower energy efficiency.

Also, poor water efficiency can result in less availability of freshwater for other uses and can waste water.

Air, odor, and noise pollution. Food processing, storage and transportation can become sources of noise, odor, and air pollution.

Industrial and warehouse pesticide use. Pesticides are used in the food industry to protect commodities, stored food and processing structures from biological contamination by pests.

Use of pesticides can result in both serious environmental and human health implications. If not done correctly, fumigation

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used for control of stored commodities can result in very serious health implications and even fatalities.

See: Rwanda Private Sector Driven Agricultural Growth (PSDAG) Pesticide Evaluation Report And Safer Use Action Plan (PERSUAP)_ https://ecd.usaid.gov/repository/pdf/46391.pdf

Social Impacts:

Crop production systems have social impacts that may particularly affect women and children. These may include labor issues such as an underpaid or underrepresented labor force, land ownership, water use issues, and related conflicts.

Food processing activities may contribute to conflicts such as control over use of resources such as land and water, nuisance issues such as smells and improper waste management and disposal, and labor issues such as underpaid or underrepresented labor force.

Worker health and safety. Post-harvest food processors are exposed to numerous safety and health hazards that may include, e.g., heat exposure, falls, musculoskeletal injuries, injuries from hazardous equipment and machinery, unsanitary conditions, and pesticides.

Sub-int 3.6: Demonstration of model farms for livestock (poultry, fish, pigs, rabbits and goats)

Direct and indirect environmental and social impacts of production of small ruminants and poultry will depend on farming systems and methods and the scale of production. In general, support and intensification of production of small ruminants and poultry is associated with the following adverse impacts (also see impacts discussed earlier in this section):

Land degradation. Production of small ruminants can result in land conversion, overgrazing and use of marginal lands, soil erosion and compaction, land degradation and diversification, and loss of natural habitats resulting in losses of biodiversity.

Animal manure and urine on land can also result in land degradation.

Spread of disease. Breed has a strong influence on disease susceptibility and disease management. An uncontrolled introduction of new breeds may result in loss of genetic diversity in livestock species and subsequent susceptibility to disease outbreaks. Other disease concerns include:

● manure and urine from land animals impacting both land and aquatic biodiversity

● fish farms spreading diseases to wild species, outcompeting other species, contaminating water resources, and damaging the aquatic ecosystem

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● diseases/pests in the demonstration animals spreading to wild species with negative impacts on ecosystems

Water pollution. Contamination may occur if nutrients from manure or urine enter the water table due to improper use or disposal. Animal manures transported from fields, pens, or feedlots into water bodies through rainfall, runoff or irrigation can pollute local drinking water sources and spread human and animal diseases. Further, nutrient contamination can result in toxic drinking water and algal blooms and negatively affect ecosystems. Water pollution can also occur from improper disposal of veterinary drugs or pesticides.

Improperly handled animal carcasses. Improperly handled animal carcasses of dead animals are a source of water pollution and can contaminate wells and surface water. They can also be a source of transmission of disease, breeding ground for pests, and source of air and odor pollution.

Animal transmitted diseases. This activity may result in increased transmission of zoonotic diseases to humans. (A zoonotic disease is an infectious disease that is transmitted between species from animals to humans [or from humans to animals, or from one species of animals to another species of animal]). Animal transmitted diseases such as Brucellosis, Giardiasis, and Ringworm (Dermatophytosis) that are transmitted from animals to people are widespread in Africa.

Animal mobility through transhumance could also be a factor in the spread of disease if the animals are not vaccinated.

Demonstration animals could also result in diseases spreading to wild animals in the area.

Pesticide and veterinary drug use. Livestock and poultry production may require using veterinary drugs and vaccines against diseases and pesticides for control of external parasites such as ticks, bots, flies, mites, lice, and other livestock pests.

The use of pesticides can lead to direct adverse effects on animal and human health as well as indirect effects to all non-target organisms through contaminated ecosystems when pesticides are released into the environment. Pesticides can affect consumers of animal products such as meat and dairy if the withholding period after pesticide treatment of animals is not observed.

Social Impacts:

When policies do not consistently address the land tenure issue for farmers and pastoralists, livestock keepers may potentially increase animal stock beyond land carrying capacity, thus contributing to enhanced competition for resources among

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stakeholders, and eventually lead to conflicts. Animals may also wonder into neighboring fields, water sources, or adjacent protected areas causing damage and becoming a source of conflict.

Due to the nature of livestock and poultry farming, there is also the potential for social impacts resulting from odor, noise, traffic disturbances, livestock incursion into crops, watering points or protected areas, and unsightly land and facilities used for animal production and housing.

Potential sources of odor nuisance include animal effluent (containing urine, dung, wash water, residual food products (e.g., milk) and waste feed, dairy manure, poultry litter (a mix of manure, water, spilled feed, feathers, and bedding material), renderings, and other wastes from livestock finishing operations.

Noise Pollution and Increased Traffic. The primary noise sources during operation of livestock and poultry farms are assumed to be mechanical services equipment and vehicular traffic. The movement of animals and equipment in support farm activities also has the potential to cause traffic disturbances.

Visual impacts. During the operation phase will mainly result from on-site buildings and farm facilities, traffic, and lighting on site.

INTERVENTION CATEGORY 4: ACTIVITIES ASSOCIATED WITH AGRICULTURAL INPUTS SUCH AS

SEED PRODUCTION AND SUPPLY, SEED MARKETING, PLANTING MATERIALS, FERTILIZERS,

AND PESTICIDES

TABLE 4D. POTENTIAL IMPACTS – INTERVENTION CATEGORY 4

Project/Activity Potential environmental and social impacts Sub-intervention 4.1: Promotion of agricultural inputs, including high yielding seeds, fertilizers, and nutrients

Sub-int 4. 2: Distribution and training on use of improved agricultural technologies (i.e., seeds that are drought tolerant and pest and disease resistant, mulching, cover cropping, small-scale mechanization, building green houses, measured use of organic and chemical fertilizers)

Agricultural intensification allows farmers to obtain greater yields per unit of land and time, but it also requires higher amounts of external agricultural inputs and technologies. Agricultural technologies and inputs have adverse impacts on ecosystem services such as soil fertility, water quality, biodiversity, air quality, and climate, as highlighted below.

Planting materials/seeds Lack of access to good quality planting materials. According to the World Research Institute, breeding of improved crops is generally credited for half of all historical yield gains. However, growers often use or purchase poor quality seed and planting materials from uncertified sources. Using low quality seed and planting materials can have a negative effect on crop yield and waste agricultural inputs. Unimproved seeds may be susceptible

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Sub-int 4.3: Demonstration plots for different types of fertilizers and nutrients to viruses and pests and improperly treated seeds may be infected with fungal or other pathogens resulting in reduced yields.

Introduction of new seeds and planting materials. Caution must be exercised when introducing non-native seeds and plant materials. Introduction of invasive species is well-known to adversely impact the environment, e.g., by displacing or destroying native plants and insects, and damage crops.

Impacts related to fertilizer use Soil fertility management activities commonly use organic and inorganic amendments and fertilizers, impact of which varies depending on the type, amount and methods of application.

Surface water and groundwater contamination. Over-application of fertilizers can lead to runoff into surface waters or leaching into groundwater particularly in sandy soils. Even small amounts of over-application of phosphorous can lead to harmful algal blooms in waterways which reduce oxygen and kill instream fauna.

Human health hazards. Exposure to fertilizer fumes may cause irritation to the eyes, nose and respiratory tract, inhalation or ingestion of some pesticides may be poisonous, and touching some fertilizers may cause skin irritation. Improperly stored fertilizer can be a health hazard. Phosphorous fertilizers also commonly contain cadmium which is toxic to humans.