Attachment 1_DCN_2020_ARM_002_IEE_AMD_ Integrity.pdf

DCN: 2020-ARM-002

US Agency for International Development (USAID) USAID/Armenia

Initial Environmental Examination (IEE) Amendment

Program/Project/Activity Data

Activity/Project Name: A More Participatory, Effective and Accountable Governance

Assistance Objective: Governing Justly and Democratically Program Area: DR.2 Good Governance Country(ies) and/or Operating Unit: Armenia/E&E

Originating Office: Sustainable Development Office Date: April 16, 2020

PAD Level IEE: Yes No Supplemental IEE: Yes No RCE/IEE Amendment: Yes No

DCN of Original

RCE/IEE: DCN: 2014-ARM-001

DCN of Amendment(s):

2014-ARM-008; 2015-ARM-006;

2015-ARM-015; 2016-ARM-006;

2017-ARM-004; 2017-ARM-006;

2017-ARM-008; 2018-ARM-009;

2018-ARM-010; 2018-ARM-011;

2019-ARM-002; 2019-ARM-005;

2019-ARM-007; 2019-ARM-008;

2019-ARM-010

If Yes, Purpose of Amendment (AMD): Adding new Integrity activity; increasing LOP and funding ceiling to the PAD

DCN(s) of All Related EA/IEE/RCE/ER(s):

Implementation Start/End:

Activity Implementation:

Oct 2020 – Sep 2025

LOP: FY14-FY25

Funding Amount: AMD: $10,000,000 LOP Amount: $79,714,448

Contract/Award Number (if known): TBD IEE Expiration Date (if any): FY2025 Recommended Environmental Determination:

Categorical Exclusion: Positive Determination:

Negative Determination: Deferral:

Additional Elements:

Conditions: Local Procurement:

Government to Government: Donor Co-Funded:

Sustainability Analysis (included): Climate Change Vulnerability Analysis (included):

1. Background and Project Description

1.1. Purpose and Scope of the IEE

The purpose of this PAD level IEE Amendment is to provide an environmental determination for a new activity to reduce opportunities for corruption and reinforce public demand for improved governance and accountability in Armenia.

This work will entail technical assistance, research, convening opportunities, and small grants.

The current amendment increases the total budget of the subject PAD by $10,000,000, thus amounting to $79,714,448. The amendment also increases the project period of performance to FY25. The Project is currently in compliance and all other IEEs and amendments are still valid.

The environmental determination for this technical assistance is qualified for a negative determination with conditions.

1.2 Project Overview

After the peaceful political transition in April 2018, the Government of Armenia (GOAM) has made eradicating corruption and instilling a culture of integrity one of its highest priorities. The success of the GOAM’s ambitious anti-corruption reform agenda, as outlined in the 2019-2022 Anti-Corruption Strategy, is largely seen as a test of the post-transition government’s commitment and capacity to consolidate democratic gains. The Strategy is interlinked with the 2019-2023 Judicial and Legal Reforms Strategy as enablers of the GOAM’s long-term institutional reform, which envisions economic and public affairs free from corruption, a fair and impartial judiciary, and transparent and accountable governance.

The purpose of the new Integrity activity is to reduce opportunities for corruption and reinforce public demand for improved governance and accountability in Armenia. To this end, the activity will provide demand-driven technical assistance to support the institutionalization, operationalization, and capacity building of corruption prevention institutions. In addition, it will provide technical assistance to streamline the legal-regulatory framework underlying the implementation of prevention measures in the Anti-Corruption Strategy and its implementation plan. Such technical assistance will not involve any laws and/or regulations on the environment or the climate. The activity will also provide technical assistance to public sector institutions and grants to local non-governmental entities to engage in a multi-stakeholder approach to hold each other accountable and embark on a collective action to counter corruption. The focus of this institutional support will not be on environment or the climate.

The activity focuses on strengthening the capacity of Armenian government and non-governmental actors and facilitating processes to implement a whole-of society strategy to counter corruption. The interventions are expected to be built on research and evidence-based lessons learned from international best practices in integrity strengthening and regional experiences of anti-corruption reforms.

The activity thus contributes to USAID’s policy of helping host countries to advance on their journey to self-reliance. It is anticipated that strengthening local institutions’ capacity to hold each other accountable in preventing corruption will help create sustainable tools and mechanisms to advance the country’s commitment to eradicate corruption.

1.3 Activity Objectives and Expected Results

The activity purpose will be achieved through three interconnected Objectives and seven Expected Results (ER), as follows:

Objective 1: Corruption Prevention Institutions and Integrity Systems Strengthened

To achieve this Objective, the activity will provide demand-driven and flexible technical assistance, including but not limited to analytical support, research studies, general training, and on-the-job coaching to support the institutionalization, operationalization, and capacity building of corruption prevention institutions.

ER 1.1: The Corruption Prevention Commission’s (CPC) functional and operational capacity to lead the country’s corruption prevention efforts strengthened.

Activity 1.1: Activities may include but is not limited to:

(1) organizational and functional reviews of the CPC;

(2) executive coaching/mentorship of CPC members;

(3) staff training on analysis of declarations and integrity checks;

(4) practical guidelines for maintaining a public register of gifts received by public officials;

(5) practical guidelines and training of trainers for outreach to integrity officers in state agencies;

(6) practical guidelines for the development and roll-out of methodologies for monitoring of anti-corruption plans by state agencies and local governments; and

(7) training, practical guidelines, and facilitation support for the CPC’s targeted outreach and communication with key stakeholders within the corruption prevention system.

ER 1.2: Capacity and influence of integrity officers within public institutions strengthened.

Activity 1.2: Activities may include but is not limited to:

(1) functional reviews;

(2) rigorous training of integrity officers and sensitization of Chiefs of Staff of subject entities;

(3) mechanisms and practical tools for access to the CPC for guidance; and

(4) practical guidelines and facilitated outreach to staff on integrity compliance, including the roll-out of codes of conduct and procedures for reporting conflicts of interest and gifts.

ER 1.3: Ability of line ministries and local self-government bodies to develop, implement, and monitor fully operationalized anti-corruption plans developed and fostered.

Activity 1.3: Activities may include but is not limited to:

(1) joint development and implementation of the CPC-approved methodology for corruption risk assessment;

(2) joint development of anti-corruption action and integrity compliance plans, as wells as plans, processes, and tools for monitoring and evaluating their progress;

(3) material support (computers, IT software for monitoring of anti-corruption actions) and technical assistance to facilitate the implementation of plans;

(4) training, practical guidelines, and facilitated support for the line ministries’ targeted outreach and communication to internal and external audiences; and

(5) collaboration with local non-governmental organizations for oversight.

Objective 2: Selected Corruption Prevention Legal-Regulatory Measures Developed and Implemented

To achieve this objective, the activity will provide technical assistance to address substantive regulations and policies to enable the CPC and other corruption prevention entities to carry out their mandates and operate as an effective corruption prevention system. In addition, the activity will support the implementation of specific legal, regulatory, and policy measures to minimize corruption risks in the institutions and sectors targeted under ER 1.3 and beyond. Such technical assistance will not involve any laws and/or regulations on the environment or the climate.

ER 2.1: Legal, regulatory, and policy framework for corruption prevention entities and processes developed, revised, and adopted.

Activity 2.1: Activities may include but is not limited to:

(1) identification of the gaps and weaknesses in the legal, regulatory, and policy framework underlying corruption prevention;

(2) support to the local stakeholders to develop a sequenced plan of action to address the gaps and weaknesses; and f

(3) facilitating the implementation of the action plan through technical assistance, analytical support, and convening power.

The thematic scope of such assistance may include: legal and regulatory measures to improve the system of declaration of property, income and conflict of interests and to introduce a system of declaration of expenditures; development of secondary legislation for and assessment of the effectiveness of the enforcement of the law on public service and Law on Civil Service;

development of model rules of conduct of public servants, rules of conduct of civil servants provided for by the Law on Public Service; development and promotion of standards for merit-based recruitment for public and civil servants; development of model ethics codes/codes of conduct/conflict of interest/gift policy. Such assistance will not involve any laws and/or regulations on the environment or the climate.

ER 2.2: Legal, regulatory, and policy framework enabling the implementation of sectoral anti-corruption plans developed, revised, and adopted.

Activity 2.2: Activities may include but is not limited to the:

(1) identification of the legal, regulatory, and policy framework needs necessary for the implementation of sectoral and/or entity-specific anti-corruption plans;

(2) support to the local stakeholders to develop a sequenced plan of action to address the needs; and

(3) facilitation of the implementation of the action plan through technical assistance, analytical support, as well as convening power.

Objective 3: Collective Action Against Corruption Fostered

To achieve this objective, the activity will facilitate a collective action approach so that all key stakeholders engaged in corruption prevention hold each other mutually accountable. The activity will also facilitate the implementation of a comprehensive communication and outreach strategy to further instill the culture of integrity and intolerance toward corruption among the public at large as key actors of collective action.

ER 3.1: Stakeholder engagement in setting policy for and monitoring of progress of corruption prevention and integrity strengthening increased.

Activity 3.1: Activities may include but are not limited to introduction/strengthening of tools and mechanisms for public consultations, private sector engagement, and citizen oversight of anti-corruption reforms.

ER 3.2: Strategic communication and outreach on anti-corruption reforms and successes improved.

Activity 3.2: Activities may include but are not limited to:

1. facilitation of the development and implementation of a communication strategy and outreach plan to sensitize the public at large to key anti-corruption reforms;

2. technical assistance and capacity building for the different actors;

3. grants for non-governmental actors for awareness raising campaigns, product development, and independent media content (e.g. investigative journalism).

2. Climate Change Vulnerability Analysis and Climate Risk Screening

Activities Potential Climate

Risk Climate Risk

Rating*

Obj. 1: Corruption Prevention Institutions and Integrity Systems Strengthened

1.1 Strengthen CPC’s functional and

operational capacity to lead the country’s corruption prevention efforts

N/A Low

1.2 Strengthen capacity and influence of

integrity officers within public institutions

N/A Low

Activities Potential Climate

Risk Climate Risk

Rating*

1.3 Improve the ability of line ministries

and local self-government bodies to develop, implement, and monitor fully operationalized anti-corruption plans

N/A Low

Obj 2: Selected Corruption Prevention Legal-Regulatory Measures Developed and Implemented

2.1 Facilitate the development and

adoption of legal, regulatory, and policy framework for corruption prevention entities and processes

N/A Low

2.2 Facilitate the development and

adoption of legal, regulatory, and policy framework enabling the implementation of sectoral anti-corruption plans

N/A Low

Obj. 3: Collective Action Against Corruption Fostered

3.1 Facilitate stakeholder engagement in

setting policy for and monitoring of progress of corruption prevention and integrity strengthening

N/A Low

3.2 Improve strategic communication and

outreach on anti-corruption reforms and successes

Severe weather events may impact the schedule

Low

Climate Risk Screening was based on analysis of the existing climate information from Armenia's risk profile and respective references and the impact upon this project. See Annex 1 of this RCE for further details of the climate risk screening for the activity. The climate risk analysis was done using the Climate Risk Screening and Management Tool.

3. Analysis of Potential Environmental Impact

Pursuant to 22 CFR 216.3(a)92)(iii), the originator of the proposed project has reviewed the potential environmental impacts of the action summarized in the foregoing IEE. As per Program Description Section of this document, different types of activities will be provided under Integrity project. Most of the activities outlined in the table below are not going to have adverse impact. Provision of material support (i.e. computers) to beneficiaries under Activity 1.3 (3) may have negative effect should these computers not be disposed in a sustainable manner.

4. Recommended Environmental Actions

4.1 Recommended Mitigation Measures

Defined/Illustrative Activities Potential Impacts Mitigation Measures Recommended

Threshold Determination

1.1 (1)-(7) Strengthen CPC’s functional and operational capacity to lead the country’s corruption prevention efforts

None Anticipated N/A

Categorical Exclusion

1.2 (1)-(4) Strengthen capacity and influence of integrity officers within public institutions

1.3 (1) (2) (4) (5) Improve the ability of line ministries and local self-government bodies to develop, implement, and monitor fully operationalized anti-corruption plans

1.3 (3) Improve the ability of line ministries and local self-government bodies to develop, implement, and monitor fully operationalized anti-corruption plans

Provision of material support (i.e.

computers) to beneficiaries under Activity 1.3 (3) may have some negative effect should computers not be disposed in a sustainable manner.

USAID will provide targeted beneficiaries training on proper disposal of computers in compliance with applicable Armenian and EU electronic waste management standards to ensure that the beneficiaries recycle the hardware (i.e.

computers) in a sustainable and environmentally sound manner

Negative Determination

Defined/Illustrative Activities Potential Impacts Mitigation Measures Recommended

Threshold Determination

2.1 (1)-(3) Facilitate the development and adoption of legal, regulatory, and policy framework for corruption prevention entities and processes

2.2 (1)-(3) Facilitate the development and adoption of legal, regulatory, and policy framework enabling the implementation of sectoral anti-corruption plans

3.1 Facilitate stakeholder engagement in

setting policy for and monitoring of progress of corruption prevention and integrity strengthening

3.2 (1)-(3) Improve strategic communication and outreach on anti-corruption reforms and successes

4.2 Recommended Environmental Determination

Categorical Exclusion:

A categorical exclusion is recommended for the following identified activities under 22 CFR 216.2(c)(2):

• Activities 1.1 (2), (3), (4), (5), (6), (7); 1.2 (2), (3), (4); 1.3 (1) (2), (4), (5); 2.1 (2), (3);

2.2. (2), (3); 3.1; 3.2 (1) (2), (3) – 22 CFR 216.2(c)(2)(i),for education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment or the climate; and

• Activities 1.1 (1); 1.2 (1) – 22 CFR 216.2(c)(2)(iii), for analyses, studies, academic or research workshops and meetings

Negative Determination:

A negative determination with conditions is recommended for activity 1.3 (3) per §216.3(a)(2)(iii). Specific terms and conditions are presented in below Section.

4.3. Terms and Conditions

4.3.1 For activity 1.3 (3), the intervention must build awareness providing training around environmental, health and safety best practices for the hardware disposal to ensure that beneficiaries will dispose/recycle computers in a sustainable manner.

4.3.2. The activity will be implemented in compliance with the requirements of the local environmental legislation and health, safety standards and best international practice.

4.3.3. The training materials shall be captured in the IP annual work plans, when applicable, and therefore budgeted for and reviewed for adequacy.

4.4. USAID Monitoring and Reporting

4.4.1 The COR, with the support of the MEO, is responsible for monitoring compliance of activities by means of desktop reviews and site visits.

4.4.2 A summary report of the Mission’s compliance relative to this IEE shall be sent to the BEO on an annual basis, normally in connection with preparation of the Mission’s annual environmental compliance report required under ADS 203.3.8.5 and 204.3.3.

4.4.4 The BEO or his/her designated representative may conduct site visits or request additional information for compliance monitoring purposes to ensure compliance with this IEE, as necessary.

4.5. Implementing Partner (IP) Monitoring and Reporting

4.5.1 The originator of the proposed project has reviewed the potential environmental impacts of the action summarized in the foregoing IEE.

4.5.2 The IP shall report on environmental compliance requirements as part of their routine project reporting to USAID.

5. Mandatory Inclusion of Requirements in Solicitations, Awards, Budgets and Workplans

5.1 Appropriate environmental compliance language, including limitations defined in Section 6, shall be incorporated into solicitations and awards for this activity and projects budgets shall provide for adequate funding and human resources to comply with requirements of this IEE.

5.2 Solicitations shall include Statements of Work with task(s) for meeting environmental compliance requirements and appropriate evaluation criteria.

5.3 Environmental mitigation and monitoring requirements, when available, shall also be included in solicitations and awards.

5.4 The IP shall incorporate conditions set forth in this IEE into their annual work plans.

5.5 The IP shall ensure annual work plans do not prescribe activities that are defined as limitations, as defined in Section 6.

5.6 The USAID Mission will include an indicator for environmental compliance as part of the project’s performance monitoring plan.

6. Limitations of the IEE: This IEE does not cover activities (and therefore should changes in scope implicate any of the issues/activities listed below, a BEO-approved amendment shall be required), that:

6.1 Normally have a significant effect on the environment under §216.2(d)(1) [See http://www.usaid.gov/our_work/environment/compliance/regulations.html]

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

6.3 Affect endangered species;

6.4 Result in wetland or biodiversity degradation or loss;

6.5 Support extractive industries (e.g. mining and quarrying);

6.6 Promote timber harvesting;

6.7 Provide support for regulatory permitting;

6.8 Result in privatization of industrial or infrastructure facilities;

6.9 Lead to new construction of buildings or other structures;

6.10 Assist the procurement (including payment in kind, donations, guarantees of credit) or use (including handling, transport, fuel for transport, storage, mixing, loading, application, cleanup of spray equipment, and disposal) of pesticides or activities involving procurement, transport, use, storage, or disposal of toxic materials and /or pesticides (cover all insecticides, fungicides, rodenticides, etc. covered under the Federal Insecticide, Fungicide, and Rodenticide Act); and

6.11 Procure or use genetically modified organisms.

7. Revisions

Under §216.3(a)(9), if new information becomes available that indicates that activities covered by the IEE might be considered major and their effect significant, or if additional activities are proposed that might be considered major and their adverse effect significant, this environmental threshold decision will be reviewed and, if necessary, revised by the Mission with concurrence by the BEO. It is the responsibility of the USAID COR/AOR to keep the MEO and BEO informed of any new information or changes in the activity that might require revision of this determination.

Approval:

Deborah Grieser, Mission Director

Date

Clearance:

Marina Vardanyan/Mission Environmental Officer

Clearance:

Anahit Khachatryan, AOR/COR

Concurrence:

Harry Bottenberg, Bureau Environmental Officer USAID Europe and Eurasia Bureau

Distribution:

IEE/RCE File MEO (to also provide a copy to COR)

Attachments: Annex 1: Climate Risk Screening and Management Tool for Activity/Project/Strategy Design

Annex A. Climate Risk Screening and Management Tool for the Activity Design

1.1: Defined or Anticipated DOs, IRs, or sectors: good governance

1.2:

Timeframe

1.3:

Geograp hy

2:

Clim ate

Risk s*

3:

Adapt ive Capac ity*

4: Climate Risk Rating of DO or

IR*

[Enter rating for each DO or IR* High, Moderate, or Low]

5: Opportunities

6.1:

Climate

Risk Manage ment Options

6.2: How Climate Risks Are

Addresse d in the

Strategy*

7: Next Steps for

Project and/or

Activity Design*

8:

Accept ed Climat e Risks*

Activity 1.1 2020-2025 Armenia N/A N/A Low N/A N/A N/A N/A N/A

Activity 1.2

2020-2025 Armenia N/A N/A Low N/A

N/A N/A N/A N/A

Activity 1.3

Activity 2.1

Activity 2.2

Activity 3.1

Armenia N/A N/A Low N/A N/A N/A N/A N/A

Activity 3.2

Armenia N/A N/A Low Schedule works in a way to avoid severe weather events N/A

Exercise flexibilit y in planning

N/A N/A