Attachment 1 DCN_2020_GEO_055_IEE_Industry Led Skills Development.pdf

US Agency for International Development (USAID) USAID/Georgia

Initial Environmental Examination (IEE) Program/Project/Activity Data

Activity/Project Name: USAID Industry-led Skills Development Program

Assistance Objective: DO 3: Inclusive High-Value Employment Opportunities Provided Through Increased Economic Growth

Program Area: IR 3.2: Competitiveness of Key Sectors Increased Country(ies) and/or Operating Unit: Georgia Originating Office: Office of Economic Growth Date: 7/9/2020 PAD Level IEE: Yes No Supplemental IEE: Yes No RCE/IEE Amendment: Yes No

DCN of Original RCE/IEE:

DCN of Amendment(s):

If Yes, Purpose of Amendment (AMD):

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

Implementation Start/End: LOP: FY2020 – FY2025 Funding Amount: LOP Amount: $24,000,000

Contract/Award Number (if known):

IEE Expiration Date (if any): [exact dates] Reporting due dates (if any): [exact dates] 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 IEE

This IEE covers the five-year Implementation of USAID Industry-led Skills Development (ILSD) Program activity, estimated at $24,000,000. Recommended Environmental Determinations for this activity is Categorical Exclusions and Negative Determination with Conditions.

1.2. Project Overview

The purpose of the USAID Industry-led Skills Development Program is to develop industry-relevant human capacity that will contribute to high-value employment opportunities and increased economic competitiveness in Georgia. The Program will achieve this by systematically engaging employers to equip Georgians with skills demanded in sectors with high growth potential and create direct linkages between training programs and employment opportunities.

DCN: 2020-GEO-055

1.3. Project Description

The Program will not prescribe the sectors of the economy to be targeted by the program interventions. By keeping the sectors flexible, the Program will be able to respond rapidly to emerging opportunities. Rather, the Program will prioritize interventions under each of the three components described below based on the following criteria:

1. Value of employment opportunities for which the skills training is designed

2. Extent of current employment opportunities for high-value employment for which the skills training is designed

3. Projected growth of high-value employment opportunities for which the skills training is designed

Extent to which interventions to promote high-value employment through a skills training intervention builds upon past and current USAID economic growth programming

The Program will have three components:

1.3.1 Component 1 – Incentivize private sector engagement in skills development

Under this Component, the Contractor must design and pilot initiatives that incentivize employers, sectoral associations/councils, industry groups, and other private sector bodies to participate in the development of examples of innovative practices of cooperation with the skills provider institutions. These practices will be related to their participations in skills training program curricula development; the delivery of skills training programs; the development and implementation of quality assurances and standards for skills training programs; and creating direct linkages between skills training programs and employment opportunities. The Contractor must actively showcase and publicize successful examples of employers’ engagement in skills development designed under this Component to increase their impact and uptake. The initiatives designed and piloted under this Component must be applied to ensure employers meaningful participation in Components 2 and 3. Within the first 120 days of start of the Program, the Contractor must conduct a constraints analysis of private sector engagement in skills development and use findings from this analysis, along with results from capacity building and employer/sectoral associations engagement activities already conducted by USAID programs and other donors and international best practices, to design the Private Sector Engagement Framework describing initiatives to be implemented under this Component.

1.3.2 Component 2 – Establish skills training programs demanded by the private sector

Under this Component, the Contractor must establish training programs demanded by the private sector in sectors with high growth potential, including short-term programs that immediately address skills mismatches that pose current constraints to the growth of high potential sectors and long-term programs that create skills that are highly demanded by the industry currently and are anticipated to be in the near future. The development and delivery of these training programs must systematically integrate initiatives developed under Component 1, and, where relevant, result in the establishment of internationally certified courses or courses of comparably high quality.

1.3.3 Component 3 – Increase access to training opportunities for rural and priority populations

The objective of the Component 3 is to increase the employability and incomes of un- and under-employed populations in the regions and increase employers’ productivity by expanding access to existing, high-quality skills training programs to rural and priority populations.

2. Baseline Environmental Information

2.1. Locations Affected and Environmental Context

Georgia is situated along the Black Sea and borders the neighboring countries of Azerbaijan, Armenia, Turkey, and Russia. The physical terrain of Georgia is mountainous. The population of Georgia is approximately 4.5 million. The capital city is Tbilisi with a population of 1.5 million people. Natural resources include iron ore, hydropower generation, manganese deposits and forestry. The coastal climate is suitable for the growth for tea and citrus fruits.

Industries include winemaking, steel, textiles, wood products and machinery. Georgia is still recovering from one of the worst collapses suffered by any post-communist country. The social system is stressed further by the war with Russia in August 2008 over occupied territories of South Ossetia and Abkhazia. Areas hardest hit by the current economic situation and influx of internally displaced persons (IDPs) from the Abkhazian conflict in 1992 and the most recent war in August 2008 in South Ossetia have been the regions of Shida Kartli, Imereti and Samegrelo where over 200,000 IDPs currently reside. The resident populations of other parts of Western Georgia, who though not physically displaced, are also victims of the conflict in Abkhazia. They are forced to compete with IDPs for limited economic opportunities, housing, access to land and scarce government assistance. Chronic unemployment remains one of the greatest obstacles to improving living standards. In four years’, after the war with Russia, and in the confines of the global economic crises, Georgia’s economy is slowly recovering and is projected to return to the pre-war growth of 6-9 percent annually. However, Georgia’s workforce lacks skills and education commensurate with requirements of such rapid growth and can significantly challenge the country’s economy and further development.

The National Environmental Action Plan (NEAP, 2000) and National Biodiversity Strategy and Action Plan (NBSAP, 2005) are the main national level policy documents related to biodiversity conservation. Both documents are outdated and not used in practice in Georgia. The Ministry of Environment Protection of Georgia began the process of preparing a new NEAP and NBSAP in 2009. Georgia is a party to the major international treaties concerning biodiversity and natural resources. These include: Convention on Biological Diversity 1994, United Nations Framework Convention on Climate Change 1994, Convention on International Trade in Endangered Species of Wild Fauna and Flora 1996, Convention on Wetlands of International Importance especially as Waterfowl Habitat 1997, Convention on the Conservation of Migratory Species of Wild Animals 2000, Agreement on the Conservation of Bats in Europe 2002, and a number of others. The most relevant to biodiversity conservation include: Convention on the Conservation of European Wildlife and Natural Habitats (2009), Cartagena Protocol on Biosafety to the Convention on Biological Diversity (2009); and the Protocol to the Convention on the Prevention of Marine Pollution by Dumping of Wastes. Compliance with these treaties and agreements is not monitored closely by the GOG or the international community. Georgia is a small developing economy, with a gross national income (GNI) of $3,570.

According to a 2019 World Bank report, 20.1% of the population lives below the poverty line, with higher rates in rural areas. The Gini coefficient for Georgia is 37.9 (National Statistics Office of Georgia (GeoStat)), which puts the country behind most of its post-Soviet neighbors in terms of income equality. This has been fueled by the “jobless growth” occurring in Georgia, resulting from economic reforms benefitting primarily the elite and a small yet growing middle class, and a focus on investments in sectors such as banking and real estate, which creates few jobs.

2.2. Description of Applicable Environmental and Natural Resource Legal Requirements Policies, Laws, and Regulations

Georgia has a significant number of laws, President’s orders and Government acts on environmental protection. Some examples include:

• The Law on Environmental Protection (1999 and updated)

• Law on Environmental Impact Permit (1991 and updated)

• Law on Ecological Expertise (2007)

• Law on Protected Areas

• Forestry code (currently being updated)

• Water law (under the development)

• Red Book

The Law on Ecological Expertise of 2007 remains the framework for environmental impact assessments (EIAs) that apply to new projects that may have adverse impacts on the environment. EIAs are part of the state ecological expertise (SEE) authority. Citizens and public organizations have access to EIAs and can express their views according to Aarhus and Espo conventions.

In addition to Georgian law, United States Government (USG) environmental policy compliance is required for all new activities.

2.3. Sustainability Analysis

The Contractor will design and implement interventions in ways that make program interventions and results achieved through these interventions sustainable beyond the life of the program. Sustainability of the training courses should be ensured from the very first steps of the Program design and throughout, through focusing on the long-term needs of the labor market, engagement of the private sector and government in the design, authorization and international certification of training programs, leveraging benefits of market-based approach for grants selection, ensuring ownership of course designs by local actors. The Contractor will examine the incentives and motivations of key actors in targeted sectors for sustaining interventions and incorporate these findings into intervention design.

Where possible, the Contractor will reorient practices or activities that could undermine sustainability, preferably in ways that create new opportunities. The Contractor will also promote engagement and partnerships with financial institutions and other private and public sector actors that have interests in seeing program interventions and results sustained into the future and ensure that each grantee has a sustainability plan after the end of the Program.

3. Analysis of Potential Environmental Impact

3.1. Component 1: Incentivize private sector engagement in skills development

Defined/Illustrative Activities Potential Environmental Impacts

1.1 Piloting different mechanisms for employers, sectoral associations/councils, industry groups, and other private sector bodies to provide input into training curriculum design and delivery

No adverse impacts are likely

1.2 Developing partnerships between training providers and incentivize employers, sectoral associations/councils, industry groups, and other private sector bodies to improve teachers’ capacity at training institutions

No adverse impacts are likely

1.3 Creating opportunities for training providers to provide instruction at employers’ facilities

No adverse impacts are likely

1.4 Engaging specialists from employers to deliver training modules No adverse impacts are likely

1.5 Increasing employer participation in career guidance No adverse impacts are likely

1.6 Designing on-the-job learning modalities, including apprenticeships and internships

No adverse impacts are likely

1.7 Increasing employer engagement in quality assurance/certification boards, sector skills councils

No adverse impacts are likely

1.8 Targeted capacity building of sectoral/industry/professional associations to increase their participation in skills development

No adverse impacts are likely

3.2. Component 2: Establish skills training programs demanded by the private sector Defined/Illustrative Activities Potential Impacts

2.1 Cost-share grants to establish short-term skills training programs demanded by the private sector

Potential impacts of grant supported activities on land, water, air and human health.

2.2 Cost-share grants to establish short-term skills training programs demanded by the private sector

Potential impacts of grant supported activities on land, water, air and human health.

3.3. Component 3: Increase access to training opportunities for rural and priority populations Defined/Illustrative Activities Potential Impacts

3.1 Cost-share grants to establish or significantly improve long and short-term certificate courses for rural and priority populations

Potential impacts of grant supported activities on land, water, air and human health.

4. Recommended Environmental Actions

4.1. Recommended Mitigation Measures

Component 2 – Establish skills training programs demanded by the private sector

Defined/Illustrative Activities Potential Impacts Mitigation Measures

Recommended Threshold Determination

2.1 and 2.2 Cost-share grants to establish short-term skills training programs demanded by the private sector

The grants may include rehabilitation of training area, which can have potential impacts of grant supported activities on land, water, air, and human health.

The implementer shall submit a short description of the grant’s activity to the COR and MEO. In case potential impacts on the environment and/or health of the beneficiaries are possible, a streamlined Environmental Review Checklist shall be completed prior to start of the activities.

No ERC will be required for grant activities that do not have potential environmental or occupational health impacts. A new streamlined version of the ERC will be utilized, and the template will be shared with the implementer.

Some illustrative mitigation measures may include but may not be limited to the following:

Training will include basic occupational health standards, applicable laws and regulations and use of appropriate PPE Training shall include proper waste management standards

Negative Determination with Conditions

Component 3 – Increase access to training opportunities for rural and priority populations

Defined/Illustrative Activities Potential Impacts Mitigation Measures

Recommended Threshold Determination

3.1 Cost-share

grants to establish or significantly improve long and short-term certificate courses for rural and priority populations

The grants may include rehabilitation of training area, which can have potential impacts of grant supported activities on land, water, air, and human health.

The implementer shall submit a short description of the grant’s activity to the COR and MEO. In case potential impacts on the environment and/or health of the beneficiaries are possible, a streamlined environmental Review Checklist shall be completed prior to start of the activities. No ERC will be required for grant activities that do not have potential environmental or occupational health impacts.

A new streamlined version of the ERC will be utilized, and the template will be shared with the implementer.

Some illustrative mitigation measures may include but may not be limited to the following:

Training will include basic occupational health standards, applicable laws and regulations and use of appropriate PPE Training shall include proper waste management standards

Negative Determination with Conditions

4.2 Recommended Environmental Determination:

Categorical Exclusions:

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

Activities 1.1, 1.2, 1.3, 1.4, 1.5, 1.6, 1.7, 1.8 under §216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.).

Negative Determination with Conditions:

Under §216.3(a)(2)(iii), a negative determination with conditions is recommended for activities 2.1, 2.2, 3.1.

Mitigation measures are enumerated in the two Tables above and specific terms and conditions are presented below in Section 4.3.

4.3 Terms and Conditions:

Prior to initiating activities that have the potential to result in significant adverse environmental, health, and safety impact, the implementer shall submit a short description of the grant’s activity to the AOR/COR and MEO. No ERC will be required for grant activities that do not have potential environmental or occupational health impacts. In case potential impacts on the environment and/or health of the beneficiaries are possible, a streamlined environmental Review Checklist shall be completed prior to start of the activities. A new streamlined version of the ERC will be utilized, and the template will be shared with the implementer. The COR/AOR, and MEO shall approve the ERC/EMMP(s) prior to implementation. For each site-specific activity, the ERC/EMMP shall be attached to the signed

Certification of No Adverse or Significant Effects on the Environment. This should be signed by the IP, COR/AOR, and MEO. After the IP has finalized its activities at a specific site, the IP shall sign a Record of Compliance with the ERC/EMMP certifying that the organization met all applicable ERC/EMMP conditions and submit it to the COR/AOR. The COR/AOR shall keep the original for the project files and provide a copy to the MEO.

4.3.2. ERC/EMMPs shall be captured in annual work plans, and therefore budgeted for and reviewed for adequacy at least annually.

4.3.3. Changes in activities and their associated ERC/EMMPs shall necessitate amending the IEE or issuing a Memo to the File (depending on extent and potential impact of the changes).

4.4 USAID Monitoring and Reporting

4.4.1. The AOR/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. If at any time the project is found to be out of compliance with the IEE, the AOR/COR or MEO shall immediately notify the BEO.

4.4.3. A summary report of 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. If an individual activity is found to pose significant adverse environmental effects that have not been identified and addressed in the attached EMMP(s), or EMMPs that were subsequently approved for the project, new EMMPs shall be developed to include environmental safeguards for such effects.

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

USAID.

5. Climate change risk screening

To minimize the negative impacts of climate change, USAID is required by ADS201mal1 to incorporate climate change risk screening for all new projects as of October 1, 2016. Climate risk screening will help the activities under the Industry-led Skills Development Program to adjust its activities to better adapt to climate change and maximize results.

Annex A shows the Climate Risk Management screening which has been completed by the 3 technical staff, including the Climate Integration Lead, using climate change information summarized in the USAID Georgia Climate Risk Profile Fact sheet on https://www.climatelinks.org/countries/georgia..

The climate risk screening conducted summarizes the climate change vulnerability risk as low. The climate change risk screening shows some opportunities that can be consider during implementation: if the curricula will incorporate climate change it will help advance scientific knowledge and skills. The short-term risk level is considered to be low although it is difficult to predict at this point what the risk level might be over the longer term. Where applicable incorporate climate change should be incorporated

1 https://www.usaid.gov/sites/default/files/documents/1868/201mal_042817.pdf in training curricula. Furthermore, the implementer should conduct a more refined climate change analysis to identify where and how climate change can be addressed in training programs.

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

6.1. 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.

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

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

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

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

6.6. The USAID Mission will include an indicator for environmental compliance as part of the project’s performance monitoring plan. [If an IEE has a threshold determination of negative determination with conditions, then a possible indictor is if the IP did the ERC/EMMP.]

7. 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:

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

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

7.3. Affect endangered species

7.4. Result in wetland or biodiversity degradation or loss

7.5. Support extractive industries (e.g. mining and quarrying)

7.6. Promote timber harvesting

7.7. Provide support for regulatory permitting

7.8. Result in privatization of industrial or infrastructure facilities

7.9. Lead to new construction of buildings or other structures

7.10. 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

7.11. Procure or use genetically modified organisms.

8. Revisions

8.1. 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 IEE.

9. Recommended Environmental Threshold Decision Clearances:

Concurrence:

Harry Bottenberg, Bureau Environmental Officer USAID Europe and Eurasia Bureau

Date

Distribution:

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

Annex A: Climate Risk Screening and Management Tool

HARRY BOTTENBERG

(affiliate)

Digitally signed by HARRY BOTTENBERG (affiliate) Date: 2020.07.23 11:13:26 -04'00'

Annex A: Climate Risk Screening and Management Tool

1.1: Defined or Anticipated Tasks or Interventions*

1.2:

Time-frame

1.3:

Geography 2: Climate Risks* 3: Adaptive Capacity

4: Climate Risk Rating* [Enter rating for each risk: High, Moderate, or Low]

5: Opportunities*

6.1: Climate Risk Management Options

6.2: How Climate Risks Are Addressed in the Activity*

7: Next Steps for Activity Implementati on

8: Accepted Climate Risks*

Component 1:

Incentivize private sector engagement in skills development

2020-

Georgia (nationwi de)

In Georgia, the projected increase in temperature and decrease in precipitation, along with the projected increase in the frequency and intensity of natural disasters, will impact the agriculture sector by causing erosion, desertification, and a general degradation of agricultural land;

reducing the availability of water;

and causing severe damage to crops from high winds, floods, droughts, and other severe weather.

Adaptive capacity of government and private sector is assumed to be low.

Low (In the short term during the implementa tion there may be limited climate change impacts on the completion of training courses;

long-term impacts are more difficult to predict)

Curricula incorporating climate change will help advance scientific knowledge and skills.

Where applicable incorporate climate change in training curricula

Where applicable incorporate climate change in training curricula

Implementer shall conduct a more refined climate change analysis to identify where and how climate change can be addressed in training programs.

Climate risks have been addressed

Component 2:

Establish skills training programs demanded by the private sector

Component 3:

Increase access to training opportunities for rural and priority populations