Attachment 6 - LACIEE2105 ETD HO - Amend LACIEE1634 Extreme Poverty Sustainably Reduced.pdf

INITIAL ENVIRONMENTAL EXAMINATION

PROJECT DATA

Project Name: Extreme Poverty Sustainably Reduced for Vulnerable Populations in Western Honduras

Geographic Location(s) (Country/Region): Honduras

Amendment (Yes/No), if Yes indicate # (1) No

Implementation Start/End Date (FY or M/D/Y):

May 30th, 2020 - September 30th, 2025

If Amended, specify New End Date: N/A

Solicitation/Contract/Award Number(s): N/A

Implementing Partner(s): N/A

Bureau Tracking ID: LAC-IEE-21-05

Tracking ID of Related RCE/IEE (if any): LAC-IEE-19-53; LAC-IEE-16-57;

LAC-IEE-16-34

Tracking ID of Other, Related Analyses: LAC- EA-16-06

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit(s):

(e.g. Mission or Bureau or Office)

USAID Honduras

Other Affected Operating Unit(s): None

Lead BEO Bureau: Diana Shannon

Funding Account(s) (if available): N/A

Original Funding Amount: $ 445,000,000

If Amended, specify funding amount: N/A

If Amended, specify new funding total:

N/A

Prepared by: Sofia Mendez

Date Prepared: April 27, 2020

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): September 30th, 2025

Additional Analyses/Reporting Required:

N/A

Climate Risks Identified (#): Low: 10 Moderate: 5 High: 6

Climate Risks Addressed (#): Low 10 Moderate 4 High 6

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

PROJECT SUMMARY

Under USAID/Honduras’ (2015-2020) Country Development Cooperation Strategy, Development Objective Two (DO2) is “Sustainably Reduce Poverty for Vulnerable Populations in Western Honduras” (hereinafter referred to as “the Project” or “DO2”). The Total Estimated Cost for DO2 is $ 445,000,000. The budget covered under this IEE includes Activities under the current and the new Country Development Cooperation Strategy (CDCS). DO2 seeks to sustainably reduce poverty for vulnerable populations within the six departments of western Honduras (Copan, Santa Barbara, Ocotepeque, Intibuca, Lempira, and La Paz). In this sense, the Project focuses on tackling one of the main causes of irregular migration by generating economic opportunities for populations at risk of migrating.

The Project also strengthens local partners’ institutional capacity, improves Hondurans’ resilience to shocks and stresses, increases children’s and their communities’ reading abilities and increases access to quality basic services like nutrition, water, and education. DO2 also implements activities which increase incomes and other economic opportunities for Hondurans by increasing the number of available jobs and increasing employment. Due to its diverse range of activities, its focus on increasing economic opportunities and reducing poverty, some activities within DO2 are, and will be, implementing actions beyond western Honduras as well.

This Initial Environmental Examination Document (IEE) document’s purpose is to provide a preliminary review of the reasonably foreseeable effects on the environment and an environmental determination (Table I) of the 13 activities described herein under DO2. The IEE consolidates environmental compliance records and replaces LAC-IEE-16-57; LAC-IEE 19-53 and LAC-IEE-16-34, in their entirety.

The COVID-19 related new activities, and specific actions not included in LAC-IEE-20-37 Programmatic Initial Environment Examination Document shall be included in the USAID/Honduras Mission Supplemental Initial Environment Examination Document.

ENVIRONMENTAL DETERMINATIONS

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

(22 CFR 216).

TABLE I: ENVIRONMENTAL DETERMINATIONS

Activities Categorical Exclusion Citation (if applicable)

Negative Determin ation

Positive Determin ation1

Deferral2

Action Type 1:Provide specialized technical assistance

Activities: ACS, USFS, HLG, TMS, CA, FARMS, SI, RIP, RM, YEMP, IP, BioAgua , NSS

Categorical Exclusion under

22. 216.2(c)(2) (i)

Action Type 2: Controlled experimentation, studies and research confined to small areas and do not include the use of pesticide

Activities: ACS, USFS, FARMS, BioAgua

Categorical Exclusion under

22. 216.2(c)(2) (ii)

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

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

Action Type 3: Analysis, studies, academic, or research workshops and meetings to develop the capability of recipient countries to engage in development planning, except to the extent designed to result in activities directly affecting the environment (such as small-scale construction or/and or renovation of facilities).

Activities: ACS, USFS, HLG, TMS, CA, RIP,FARMS, YEMP, BioAgua

Categorical Exclusion under

22. 216.2(c)(2) (iii)

Action Type 4: Information documentation and exchange.

Activities: ACS, FARMS, TMS, CA, RIP, RM, YEMP, BioAgua, NSS

Categorical Exclusion under

22. 216.2(c)(2) (v)

Action Type 5: Provide training and other capacity building actions to the GOH and non-governmental organizations.

Activities: ACS, USFS, HLG,FARMS, TMS, CA, SI, RIP, RM, YEMP, IP, BioAgua, NSS

Categorical Exclusion under

22. 216.2(c)(2) (i)

Action Type 6: Promotion of private sector engagement in private-public alliances around common objectives through meetings.

Activities: ACS, HLG, TMS, FARMS, CA, RIP, YEMP, IP, BioAgua, NSS

Categorical Exclusion under

22. 216.2(c)(2) (i)

Action Type 7: Renewable energy actions include the design and implementation of pilot projects and small-scale projects which involve clean energy/renewable energy.

Activity: ACS

Action Type 8: Conservation of key ecosystems and biodiversity:

Conservation actions such as:

restoration and conservation of forest-land, control of forest pests and forest fires.

Activities: ACS, USFS, BioAgua

Action Type 9: Supporting the establishment and implementation of alternative off-farm livelihoods, and small-scale conservation-based activities.

Activities: ACS, USFS, TMS, FARMS, YEMP, HLG, BioAgua

Categorical Exclusion under

22. 216.2(c)(2) (i)

Action Type 10: Reduce risk to climate shocks actions could include improving early alert systems and dissemination of information.

Activities: ACS, BioAgua

Categorical Exclusion under

22. 216.2(c)(2)

(i) (iii)

Action Type 11: Promotion of best agricultural practices.

Activities: ACS, TMS, FARMS, CA, YEMP

Action Type 12: Provision of fertilizers, application of sanitary and phyto-sanitary measures.

Activities: ACS, TMS, FARMS, CA, YEMP

Action Type 13: Promoting cultivation of crops for nutrition purposes.

Introduction of home-grown high-nutrient produce for sale and consumption.

Activities: ACS, FARMS, NSS

Action Type 14: Promote financial services through non-traditional

Categorical Exclusion under lenders; Increase the capacity of borrowers; stimulate a market for mobile money transactions; Stimulate a market for mobile money transactions.

Activities: ACS, TMS, FARMS, CA, YEMP, BioAgua, NSS

22. 216.2(c)(2)

(i) (iii)

Action Type 15: Small-scale construction/renovation of facilities for schools, health centers, municipal, Improvement of home conditions such as the installation of covered floors and regional government offices, water service management, home improvements works.

Activities: ACS, TMS, HLG, Ag Ac, SI, CA, IP, BioAgua

Action Type 16: Small-scale installation/construction of facilities for water management.

Activities: ACS, FARMS, CA, SI, IP, BioAgua

Action Type 17: Small-scale construction of water-related infrastructure under Sub IR 2.1.1 and Sub-IR 2.1.2

Activities: ACS, FARMS, SI, IP, BioAgua

☐ ☒3 ☐

Action Type 18:

Construction/renovation of facilities for schools, health centers, community sport areas, youth development centers, sanitary and WASH facilities.

Activity: IP

3 The corresponding Environmental Assessment (LAC- EA-16-06) was performed by the Honduras Mission and approved by the Bureau Environment Officer (BEO) in July 2016.

Action Type 19.a: All Sub-awards would support training, technical assistance, planning, and studies.

Activities: ACS, HLG, FARMS, TMS, YEMP, IP, BioAgua, NSS

Categorical Exclusion under

22. 216.2(c)(2) (i)

Action Type 19.b: All Sub-awards used for small-scale (less than 1000 m2) construction of existing structures.

Activities: ACS, HLG, FARMS,IP

Action Type 19.c: Sub-awards may provide basic equipment such as computers, printers except for agricultural equipment.

Activities: ACS, HLG, FARMS, TMS, YEMP, IP, BioAgua, NSS

CLIMATE RISK MANAGEMENT

In accordance with Executive Order 13677 on Climate-Resilient International Development, as of September 2016, all USAID projects and activities require being managed for climate risks. The Climate Risk Management process was undertaken by the Mission Environmental Officer and Climate Integration Lead. The Determination was made for 10 low climate risk, 5 moderate risk and 6 high risk actions within the Project. The moderate and high climate risk determination indicates that the activity will need to incorporate actions to mitigate climate risks. The “Climate Risk Screening and Management Tool for Project ” is included as Annex 1.

BEO SPECIFIED CONDITIONS OF APPROVAL

None

IMPLEMENTATION

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

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION

PROJECT NAME: Extreme Poverty Sustainably Reduced for Vulnerable Populations in Western Honduras (DO2) Bureau Tracking ID: LAC-IEE-21-05 Approval: Electronic signature Oct 7, 2020

Kenneth MacLean, Acting Mission Director Date

Clearance: Cleared by email July10, 2020

Andrew McCown, EG Office Chief Date

Clearance: Cleared by email July 1, 2020

Clearance:

Mariella- Ruiz Rodriguez, EDO Office Chief

Cleared by email

Date

June 23,2020

Michelle Linder, DG Office Chief

Cleared by email

Date

July 10, 2020

Clearance: Sofía Méndez, DOTL2 Date

Clearance: Cleared by e-mail July 13,2020

Peter Hearne, Mission Environmental Officer and Climate Integration Lead

Date

Clearance: Cleared by e-mail Sept 4, 2020

Michelle Dworkin, Program Officer Date

Clearance: Cleared by e-mail Sept 17,2020

Mariella- Ruiz Rodriguez, Acting Deputy Mission Director Date

Clearance: Cleared by e-mail July 8, 2020

Jeff de Graffenreid, Interim- Regional Environmental Advisor Date

Concurrence: Electronically signed Oct 19, 2020

Diana Shannon, Bureau Environmental Officer Date

DISTRIBUTION:

Table of Content

INITIAL ENVIRONMENT EXAMINATION

Project Data 1 Organizational/Administrative Data 1 Environmental Compliance Review Data 1

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS 2

PROJECT SUMMARY 2

ENVIRONMENTAL DETERMINATIONS 2

TABLE I: ENVIRONMENTAL DETERMINATIONS 3

CLIMATE RISK MANAGEMENT 6

BEO SPECIFIED CONDITIONS OF APPROVAL 7

IMPLEMENTATION 7

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION 8

DISTRIBUTION: 9

Table of Content 10

1.0 PROJECT DESCRIPTION 13

1.1 PURPOSE OF THE IEE 13

1.2 PROJECT OVERVIEW 13

Table II: On-going DO2 activities covered under this IEE 14

1.3 PROJECT DESCRIPTION 15

Figure No.1: DO2s Results Framework 16 IR 2.1 Resilience of livelihoods increased 16

Output 1 (Sub IR 2.1.1) Natural Resource Management and Biodiversity Protection Improved 17

Sub-output 1.1: Improved watershed and key ecosystems management 17 Sub-output 1.2: Promote renewable energy 17 Sub-output 1.3: Increased economic opportunities through market-based conservation 17

Output 2 (SubIR 2.1.2) Adaptation of Poor Households to Climate Risks Increased 17 Sub-output 2.1: Improved access to, and use of, climate change information 17 Sub-output 2.2: Facilitate access to irrigation 17 Sub-output 2.3: Promote diversified, resilient off-farm income sources 18 Sub-output 2.4: Reduce risk to climate shocks 18

IR 2.2 Incomes Increase 18 Output 1 (Sub IR 2.2.1): Agricultural Productivity Improved 18

Sub-output 1.1: Increased use of best agricultural practices and innovative technologies 18 Sub-Output 1.2: Improved access to sound and affordable risk management and financial services 18

Output 2 (Sub IR 2.2.2): Market Demand and Access Increased 18

Sub-output 2.1: Increased market readiness and access to markets 18 Sub-output 2.2: Expanded markets and services for the poor and MSMEs 19 Sub-output 2.3: Increased public and private investment for local economic and workforce development 19

IR 2.3 Human capital improved with a focus on children 19 Output 1 (Sub-IR 2.3.1): Basic Education and Nutrition Service Delivery Improved 19

Sub-Output 1.1: Education 19 Sub-Output 1.2: Nutrition 19

Output 2 (Sub-IR 2.3.2): Local Service Management Systems Improved 19 Sub-Output 2.1: Civil Society Participation Improved 20 Sub-Output 2.2: Improved service provision 20 Sub-Output 2.3.: Basic Education and Nutrition Service Delivery Improved 20

Table III: DO2 Action Types Definition 20

TABLE IV: DO2 ACTIVITY DESCRIPTION 23

2.0 BASELINE ENVIRONMENTAL INFORMATION 27

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT(Environment, Physical, Climate, Social, Threatened and Endangered Species) 27

Physical and Climate 27 Social 28 Threatened and Endangered Species 28

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER

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

POLICIES, AND REGULATIONS 29

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK 30

TABLE V: DO2 Activities Potential Risks and Mitigation Measures 30

4.0 ENVIRONMENTAL DETERMINATIONS 39

4.1 RECOMMENDED ENVIRONMENTAL DETERMINATIONS 39

TABLE VI: ENVIRONMENTAL DETERMINATIONS 39

4.2 CLIMATE RISK MANAGEMENT 43

5.0 CONDITIONS AND MITIGATION MEASURES 44

5.1 CONDITIONS 44

5.1.1 During Pre-Award: 44

5.1.2 During Post-Award: 44

5.2 AGENCY CONDITIONS 45

6.0 LIMITATIONS OF THIS INITIAL ENVIRONMENTAL EXAMINATION 46

7.0 REVISIONS 47

ATTACHMENTS: 48

Annex 1: Climate Risk Management Summary Table for Project 48 Annex 2: EMMP Template in Spanish and English 48

Annex 3: USAID/Honduras PERSUAP 48 Annex 4: DO2 Programmatic Environmental Assessment (LAC-EA-16-06) 48

1.0 PROJECT DESCRIPTION

1.1 PURPOSE OF THE IEE

The purpose of this IEE is to consolidate and analyze the potential environmental impact for activities and actions proposed under USAID/Honduras’ CDCS DO2 “Extreme Poverty Sustainably Reduced for Vulnerable Populations in Western Honduras” (further referred to as “the Project” or “DO2”). This IEE is a critical element to inform and facilitate compliance with the Agency’s mandatory Environmental Procedures (see 22 CFR 216 and ADS 204) meant to achieve environmentally sound design, efficient implementation, and foster sustainability in USAID’s activities. In this regard, this document seeks to:

1. Incorporate four new activities which will contribute to DO2. This IEE provides the environmental analysis of these activities and their actions in accordance with 22 CFR 216 and ADS 204.

2. Consolidate and update the environmental compliance records for all activities and actions under approved documents LAC-IEE-16-57, LAC-IEE-19-53, and LAC-IEE-16-34. This IEE document replaces LAC-IEE-16-57; LAC-IEE 19-53 and LAC-IEE-16-34 in their entirety.

3. Provide a preliminary review of the reasonably foreseeable effects on the environment of USAID’s DO2 interventions described herein. The document also recommends determinations and, as appropriate, conditions, for these activities and their actions, in accordance with 22 CFR 216.

4. Determined conditions that should be implemented to address identified potential environmental impacts like formal environmental mitigation and monitoring plans (EMMPs) and/or if needed Environmental Assessments (EAs).

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).

1.2 PROJECT OVERVIEW

USAID/Honduras currently implements nine activities under its DO2 project, which has a Total Estimated Cost (TEC) of $ 445,000,000. DO2 increases incomes and other economic opportunities for Hondurans, strengthens local partners’ institutional capacity, improves Hondurans’ resilience to shocks and stresses, increases children’s and their communities’ reading abilities, and increases access to quality basic services like nutrition, water, and education.

DO2 started its implementation in 2014 with 13 activities, whose actions were analyzed and issued environmental determinations under LAC-IEE-19-53, LAC-IEE-16-57, and LAC-IEE-16-34. Over the past few years, the DO2 team has learned and adapted its programming to effectively reach its objective. This adaptation includes incorporating new activities and not procuring others due to funding constraints, and other strategic decisions https://www.usaid.gov/our_work/environment/compliance/22cfr216 https://www.usaid.gov/ads/policy/200/201mal made by the Mission. Table II below identifies the ongoing DO2 activities that will continue after June 30, 2020. These activities and their actions would be covered under this IEE.

Additionally, the DO2 team envisions four new awards to be included under this IEE, the Youth Employment for Migration Prevention (YEMP), the Infrastructure Platform, the New Food Security and Nutrition System Strengthening Activity (NSS), and the Biodiversity and Water for Honduras’ Prosperity (BioAgua). These new activities are further described in section 1.3 and their actions are also fully considered under this IEE.

Table II: DO2 Activities

Name of the Activity IEE coverage Closed before June 30, 2020

Ongoing after June 30, 2020

USAID/ProParque LAC-IEE-19-53 X

PODER LAC-IEE-19-53 X

Access to Markets LAC-IEE-19-53

LAC-IEE-16-57

X

ACS LAC-IEE-19-53

LAC-IEE-16-57

X

USFS LAC-IEE-19-53 X

Honduras Local Governance LAC-IEE-19-53

LAC-IEE-16-34

X

GEMA LAC-IEE-19-53 X

USDA PAPA LAC-IEE-16-57 X

FTF-Trilateral Activity LAC-IEE-16-57 Never procured

Transforming Market Systems LAC-IEE-16-57 X

Small Grants Program LAC-IEE-16-57 X

New Agriculture Activity LAC-IEE-16-57 X

The Coffee Alliance LAC-IEE-16-57 X

NEXOS LAC-IEE-16-34 X

MUNASBAR LAC-IEE-16-34 X

DEE LAC-IEE-16-34 X

EducAcción LAC-IEE-16-34 X

MIDEH LAC-IEE-16-34 X

Small Infrastructure LAC-IEE-16-34 X

Reading Improvement Program

LAC-IEE-16-34 X

Reading Materials Program LAC-IEE-16-34 X

1.3 PROJECT DESCRIPTION

Poor social and economic conditions are especially pronounced in western Honduras. Extreme poverty, undernutrition, climate change vulnerability, low educational levels, lack of access to basic services, and other socio-economic challenges are endemic. These conditions coalesce to become one of the primary push factors of irregular migration to the U.S. To address these social, economic, and security issues, and in support of the U.S. Strategy for Engagement in Central America, USAID implements integrated programming that increases incomes, strengthens local partners’ institutional capacity, improves community and household resilience to shocks and stresses, and increases access to quality basic services such as education and health in 130 municipalities in western Honduras.

The Project aligns with several U.S. strategies, policies, and initiatives: America Crece, Feed the Future/Global Food Security Strategy, Education Strategy, Gender Equality and Female Empowerment Policy, Journey to Self-Reliance Policy, and Global Climate Change.

Furthermore, the Project is also aligned with the Government of Honduras (GOH)-led initiatives such as: Alliance for the Dry Corridor, and Honduras Country Vision and National Plan.

Figure No.1 below describes the Project’s current results framework. The following sections provide a brief overview of each Intermediate Result (IR) and sub-intermediate result (Sub-IR) at the output and sub-output level.

Figure No.1: DO2’s Results Framework

IR 2.1 Resilience of livelihoods increased

Output 1 (Sub-IR 2.1.1) Natural Resource Management and Biodiversity Protection Improved

Sub-output 1.1: Improved watershed and key ecosystems management Building the resilience of watershed and key ecosystems in western Honduras is essential to sustainably lifting households out of poverty. These ecosystems protect key environmental goods and services, particularly water, for communities in the region by regulating local microclimates, water quality, and hydrological flows. Preserving ecosystem services requires improved enforcement of current environmental laws and regulations that protect habitats, forests, watersheds, soils, and species, along with improved coordination and decision-making at the local level. The Project will invest in conservation practices and the strengthening of local institutions that either supply or demand water or other ecosystem services. Conservation activities will always involve civil society organizations and local institutions to strengthen environmental governance.

Sub-output 1.2: Promote renewable energy The Project will promote renewable energy technologies to reduce the cost of buying fuelwood, reduce deforestation, improve household health, and free up women’s time while protecting the environment.

Sub-output 1.3: Increased economic opportunities through market-based conservation The Project will work in high-potential sectors that can quickly become more productive and mitigate threats to biodiversity, while facilitating increased jobs and sales through conservation instead of exploitation.

Output 2 (Sub-IR 2.1.2) Adaptation of Poor Households to Climate Risks Increased

Sub-output 2.1: Improved access to, and use of, climate change information The Project will support the installation of meteorological stations to gather climatic information and computer modeling to determine optimal places to harvest water. This information will later reach end users through electronic messaging, field technicians, or local institutions such as Municipal Environment Units, Municipal Emergency Committees (CODEM), and Local Emergency Committees (CODEL). Additionally, USAID will integrate climate change and disaster response considerations into the design and construction of new infrastructure, through a review of all new awards by in-house USAID climate experts.

Sub-output 2.2: Facilitate access to irrigation Drip irrigation offers increased incomes for producers through increased yields and productivity, diversified production, and more harvests by extending production over the entire year. The Project will introduce and promote the adoption of irrigation for higher-value and traditional staple crops. It will support the scaling up of current irrigation coverage.

Sub-output 2.3: Promote diversified, resilient off-farm income sources As the climate in western Honduras becomes more variable, agriculture as it is currently practiced is becoming less viable. Diversification, both within and outside of agriculture, is essential to reduce household financial risks. The Project will identify, develop, and strengthen off-farm livelihood options that are more resilient to climate-related shocks and stresses, such as carpentry, pottery, agricultural processing, and cultural tourism.

Sub-output 2.4: Reduce risk to climate shocks Navigating one’s way out of poverty can be a lifelong or even an inter-generational challenge, where any small progress can be undone by a single natural disaster or unexpected life event.

The Project will continue efforts to improve information access, and preparedness at the national, municipal, and community levels to strengthen local institutions, particularly CODEMs and CODELs, so as to reduce the repercussions of climate-related disasters.

IR 2.2 Incomes Increased

Output 1 (Sub-IR 2.2.1): Agricultural Productivity Improved

Sub-output 1.1: Increased use of best agricultural practices and innovative technologies Farmers will be encouraged to adopt new technologies, which will increase the yields per unit of land of their traditional crops, producing more of the staple food needed to feed their families.

As yields grow, farmers will begin to diversify into higher value crops and increase their yearly production and sales. Technical assistance will be provided to ensure that best agricultural practices are being implemented.

Sub-Output 1.2: Improved access to sound and affordable risk management and financial services The Project will address the constraints to access finance. Constraints will be identified, prioritized, and addressed in partnership with the private sector. Constraints include, but are not limited to, the lack of registered property to serve as collateral, the tendency of rural small businesses to not register formally, the reluctance to use the banking system to manage business finances, and the lack of cash flow/credit history.

Output 2 (Sub-IR 2.2.2): Market Demand and Access Increased

The Project will promote activities to stimulate productivity and supply, and will also create the enabling environment for greater demand. The Project will use a facilitation approach to stimulate changes in the market system.

Sub-output 2.1: Increased market readiness and access to markets The Project will strengthen existing producer organizations and businesses and help to develop new producer organizations, especially women-led units. It will also support micro, small, and medium enterprises (MSME) in improving the quantity and quality of their products in order to increase new markets.

Sub-output 2.2: Expanded markets and services for the poor and MSMEs Farmers’ businesses and non-farm enterprises will be strengthened and formalized, while also being linked to market partners (i.e., brokers, retailers, and exporters), to benefit from the services they provide.

Sub-output 2.3: Increased public and private investment for local economic and workforce development Technical assistance will strengthen local government capacity to lead social development initiatives and provide targeted sector-specific technical assistance where needed to achieve targets and objectives. The Project also supports and seeks private sector engagement to identify key constraints and address them. Also, it fosters partnerships with the private sector to assess demand in the labor market and meet those demands through strengthening the workforce system at the national and regional levels. All levels and types of assistance will integrate principles of transparency and accountability and, where necessary, provide tools and strategies for improving supervision and oversight, assessment, and information sharing.

IR 2.3 Human capital improved with a focus on children

Output 1 (Sub-IR 2.3.1): Basic Education and Nutrition Service Delivery Improved

The Project will focus on basic service delivery by local government in the areas of education and nutrition services.

Sub-Output 1.1: Education The Project will focus on promoting tailor-made interventions to increase student ability to read at grade level by the end of grade six. It will also focus on developing workforce development actions to ensure youth have necessary skills and training to access jobs and or establish their own enterprises.

Sub-Output 1.2: Nutrition The Project will build on existing, evidence-based interventions in community child health, and nutrition models that have been shown to prevent and adequately address undernutrition during the first 1,000 days covering the period of a mother’s pregnancy through the child’s second birthday. The Project will strengthen and apply the Ministry of Health (MOH) Community Childhood Integrated Care (AIN-C in Spanish) strategy and improve community and household sanitation and hygiene.

Output 2 (Sub-IR 2.3.2): Local Service Management Systems Improved

The governance implementing mechanism will achieve this output by improving basic service provision and working through civil society organizations to promote a demand for these services. The Project will work in municipalities and with local groups that demonstrate commitment to these reform processes and show active citizen engagement.

Sub-Output 2.1: Civil Society Participation Improved The Project will focus on increasing the capacity of civil society groups, including women’s organizations, to advocate for their needs and priorities and to monitor funding allocations and quality of service delivery. There is a need to monitor the provision of education, nutrition, and environmental services. In addition, USAID needs to organize advocacy groups to cooperatively work on expanding school and health infrastructure, water and sanitation systems, and environmental preparedness.

Sub-Output 2.2: Improved service provision The Project will support the improvement of service provision in chosen municipalities.

Sub-Output 2.3.: Basic Education and Nutrition Service Delivery Improved The Project will focus on basic service delivery by local governments in the areas of education and nutrition services.

To facilitate environmental analysis, this document has identified primary action types. The action type is not an individual undertaking. Every action type includes elements which may cause similar environmental effects, and therefore need similar monitoring and mitigation measures. The action types are defined in Table III.

Table III: DO2 Action Types Definition

Name Definition

Action Type 1: Provide specialized technical assistance to:

a) identify key watersheds and other biologically significant areas in western

Honduras, improve land-tenure issues;

b) build technical capacity for service providers and users;

c) raise awareness among local stakeholders of the importance of ecosystem services;

d) build capacity to enforce environmental regulations;

e) leverage partnerships with the private sector to provide assistance for new livelihoods, job creation and job placements;

f) train at-risk youth as forest rangers to provide them with opportunities to work while learning about environmental protection;

g) provide workforce development actions for youth and vulnerable populations to prevent migration.

h) train climatic/hydrological stations managers, and to reduce risk related to climate change (under Sub-IR 2.1.2);

i) support education or training programs (under IR 2.3), except to the extent such programs include activities directly affecting the environment (such as small-scale construction or/and or renovation of facilities and family orchards);

j) design, produce, and distribute curricular and supplemental materials for teachers and students;

k) facilitate dialogue and collaboration between service-delivery institutions and citizen organizations;

l) identify vulnerable infrastructure that needs strengthening;

m) formalize community organizations and to meet legal requirements;

n) sustain the growth of market-ready farmers;

o) promote the expansion of rural businesses with high potential to link other producers to market opportunities (anchor firms) and generate employment;

p) develop preferential supplier programs to enhance farmer associations’ market sustainability once they reach a level of proficiency through the project’s assistance;

q) co-create interventions to support the private sector and other entities in providing direct assistance to beneficiaries;

r) increase levels of collaboration, coordination, and co-investment by secondary education and technical skills service providers, employers, GOH, and other actors;

s) stimulate a market for micro-insurance at the household level to help offset farmer risk and other actors’ risk.

Action Type 2: Controlled experimentation, studies, and research exclusively for the purpose of research and field evaluation which are confined to small areas and do not include the use of pesticides. For example: studies and research on biodiversity threats analysis and other biodiversity analysis; clean energy research; meetings and workshops on biodiversity conservation and governance (under Sub-IR 2.1.1); studies and research on vulnerability analysis; Global Climate Change adaptation research and data transfer via workshops/meetings (under Sub-IR 2.1.2); reading assessments at the municipal level.

Action Type 3: Analysis, studies, academic, or research workshops and meetings to develop the capability of recipient countries to engage in development planning, except to the extent designed to result in activities directly affecting the environment (such as small-scale construction or/and or renovation of facilities).

Action Type 4: Information documentation and transfer on energy efficiency regulatory approaches, trilateral agreements on renewable energy. Promote adaptation governance, adaptation information tools transfer (Sub-IR 2.1.1). Interventions (Sub-IR 2.1.2 and Sub-IR 2.2.2) regarding improving access to and use of climate change information (IR 2.1.2.1)

Action Type 5: Provide training and other capacity building actions to GOH and non-governmental organizations. Illustrative actions include:

a) Training on the content and methodology of the AIN-C for MOH personnel, decentralized providers, and community volunteers, including monthly child growth monitoring;

b) Nutrition counseling and education for appropriate feeding for children under two years of age and management of common childhood diseases, among others;

c) Training and other professional development support to teachers to improve instruction, including curricular coverage, differentiated instruction, and the use of materials and formative assessment.

Action Type 6: Promotion of private sector engagement in private-public alliances around common objectives. Bring financial services to key productive sectors with potential to reduce poverty and generate employment. This is mainly achieved through meetings, capacity building, and workshops.

Action Type 7: Renewable energy actions include the design and implementation of pilot projects and small-scale projects which involve clean energy/alternative renewable energy (e.g., biodigesters, solar panel installation, wind energy, small-scale hydro power, eco-stoves, etc.) (under Sub-IR 2.1.1. And Sub-IR 2.2.1, sub-output 1.1 and 2.3).

Action Type 8: Conservation of key ecosystems and biodiversity. Conservation actions such as:

restoration and conservation of forest land, control of forest pests and forest fires, establishment of ecosystem services compensation mechanisms focusing on social impact and ecosystem connectivity, improvement of small-scale infrastructure as an incentive for participation in ecosystem service schemes

(under Sub-IR 2.1.1).

Action Type 9: Supporting the establishment and implementation of alternative off-farm livelihoods, and small-scale conservation-based activities (under Sub-IR 2.1.1 and Sub-IR 2.2.2). Actions may include expansion of the ecotourism sector, crafts, bee-keeping, etc. Actions will identify, develop and strengthen off-farm livelihood options which are more resilient to climate-related shocks (Under Sub-IR 2.1.2).

Action Type 10: Reduce risk to climate shocks actions could include improving early alert systems and others (under Sub-IR 2.1.2).

Action Type 11: Promotion of best agricultural practices under Sub-IR 2.2.1 (sub-output 1.1) through extension services.

Action Type 12: Provision of fertilizers, application of sanitary and phyto-sanitary measures (Under Sub-IR 2.2.1 and Sub-IR 2.2.2, sub-output 1.1, 2.2, 2.3).

Action Type 13: Promoting cultivation of crops for nutrition purposes, and introduction of home-grown high-nutrient produce for sale and consumption (under Sub-IR 2.3.1.2).

Action Type 14: Promote financial services through non-traditional lenders; increase the capacity of borrowers; stimulate a market for mobile money transactions; stimulate a market for mobile money transactions through assessments and specialized technical assistance and other facilitation strategies.

Action Type 15: Small-scale construction/refurbishing of facilities such as schools, health centers, municipal offices; improvement of home conditions, such as the installation of cement floors, and water services (under Sub-IR 2.3.1, and Sub-IR 2.3.2).

Action Type 16: Small-scale installation/renovation of facilities for improved water conservation and management (under IR 2.2, sub-output 1.1, 1.2, 2.1, 2.2, and 2.3).

Action Type 17: Small-scale construction of water-related infrastructure under Sub-IR 2.1.2;

monitor possible introduction of invasive species under Sub-IR 2.1.1; and monitor the cumulative impacts of the irrigation activities at the watershed level.

Action Type 18: Improvements and construction of small and medium size education and health facilities, local water and sanitation infrastructure, tertiary road maintenance, paving of roads, outreach centers, public lighting, police stations, justice operators infrastructure, public parks, recreational spaces, markets, energy projects, and vocational centers, among others.

Action Type 19: Sub-awards: Specific actions for sub-awards are not yet known, but would likely fall under one of the following sub-action types.

Action Type 19.a: Sub-awards used to support training, technical assistance, planning, and studies.

Action Type 19.b: Sub-awards used for small-scale (less than 1000 m2) refurbishing of existing structures.

Action Type 19.c: Sub-awards used to provide basic equipment such as computers and printers, except for agricultural equipment.

As mentioned above, the USAID/Honduras Mission plans to attain DO2 through eleven activities or awards. Each activity contributes to one or more Sub-IRs. Table IV provides a brief description of these awards.

TABLE IV: DO2 ACTIVITY DESCRIPTION 4

Activity Name

(LOP, TEC)

Description

Alianza para el Corredor Seco (ACS)

December 2014- December 2020

TEC: $60.6 million from USAID and $22 million from GOH

This Activity will intensify integrated, market-oriented assistance that is described in the Feed the Future (FTF) Multi-Year Strategy. The main goals of ACS are: 1) increase incomes for 15,000 households; 2) strengthen rural market systems so that a resilient and sustainable path exists for continued prosperity; and 3) reduce undernutrition by 20 percent in target communities (covered in the IR 2.3 PAD). The Activity includes significant investments to increase household access to irrigation water, increase agriculture productivity and off-farm income, provide nutritional services at the community and household levels, and improve access to markets to increase incomes for vulnerable populations.

This Activity was awarded directly to the GOH, to be overseen by Inversiones Estratégica de Honduras – INVEST-H.

U.S. Forest Service (USFS) Inter-agency Agreement

December 2018- December 2020

TEC: $1.5 million

Supports the Honduran forestry sector by providing short-term technical assistance and training in areas such as forest inventories, fire and pest control, community forestry, protected area and forest management, timber value system, and natural resources management. USFS supports watershed management through forest restoration, forest management (including pest control), and ecotourism.

Honduras Local Governance (HLG)

November 2016- September 2021

TEC: $58,582,412

This activity strengthens local governance and nutrition, water, and education services, and generates economic opportunities and services.

The activity provides technical assistance to strengthen the ability of service providers to adhere to national standards in a transparent, accountable fashion.

The activity will work with citizen transparency commissions and evidence-based oversight; and will continue to strengthen the systems of

4 USAID/Honduras acknowledges there might be some activities which will also receive funding from DO2 and are not included in this IEE. For these activities, the MEOs hereby confirm the complete environmental analysis (considering all actions and estimated cost) was done under the DO1 or DO3 IEE.

transparency and accountability in each targeted municipality, thus improving the quality and quantity of service delivery. This activity will also use targeted training to help local governments to increase local revenue and implement policies and programs that reflect local priorities.

Assistance under this activity includes technical expertise, small grants for social auditing, and training to strengthen the capacity of local civil society organizations.

The activity will emphasize the needs of vulnerable groups, especially returned migrant youth and others intending to migrate. Assistance will also provide technical expertise to strengthen local authorities’ capacity to strengthen local economic development and job creation, and small grants for local workforce development.

Transforming Markets Systems (TMS)

April 2018 -April 2025

TEC: $49,496, 986

The Transforming Market Systems (TMS) activity will foster competitive, resilient, and inclusive market systems that increase economic opportunities for poor and marginalized Hondurans. This activity is implemented through a facilitative approach that requires TMS to engage stakeholders in co-creation of partnerships. These partnerships address constraints to private sector investment, economic growth, and job creation.

TMS focuses on four sectors: 1) value-added agriculture, 2) tourism and creative industries, 3) entrepreneurship, and 4) business enabling environment. TMS has established over 30 partnerships with private sector, civil society, and academia spanning the four areas of investment.

The activity will facilitate access to financial tools and services for key productive sectors; foster formation of a proper business enabling environment; develop municipal planning and implementation capacities to identify key constraints for private sector growth, such as the provision of basic services (water, energy, security), and invest in local productive/logistical infrastructure (e.g., agro-industrial parks, cold storage facilities, processing plants).

Food Security, Agriculture and Resilient Market Systems Activity

(FARMS)

Start date: TBD TEC: $19.1 million

This activity will foster competitive, resilient, and inclusive markets to increase economic opportunities for poor, marginalized Hondurans. It will focus on generating, adapting, validating, and making available technologies and practices that can effectively contribute to increasing family incomes in the rural areas. The New Agriculture Activity will use a facilitative approach and work hand-in-hand with local communities to design and oversee original proposals that advance food security. It will be a laboratory in both process and content, trying out new, locally-owned approaches that improve food security in ways different from, but complementary to, successful prior FTF activities in Honduras.

The Coffee Alliance (CA)

June 2018- June 2020

TEC: $2,080,000

The purpose of this Alliance is to mobilize private sector resource partners to participate in the coffee value chain so that they can assume the role donors have traditionally played. These private sector partners have a direct interest in increasing productivity and creating market linkages that align with their core business model. Through this partnership, USAID is providing technical assistance to the private sector to increase its management capacity, and expanding private sector technical capacity to support 4,800 coffee growers in western and central Honduras.

Small Infrastructure Activity (SI)

August 2019- September

TEC: $6,000,000

This activity will include improvements and refurbishing of small-scale education and health facilities, local water and sanitation small infrastructure, tertiary road maintenance, public parks, and markets — all of which link to municipal capacity to improve the delivery of basic services.

These investments are meant to complement capacity building in municipalities that demonstrate commitment to partnering with civil society organizations to improve advocacy for, oversight, and delivery of basic services. Furthermore, projects will be identified by community partners, which include private sector, women’s advocacy groups, and farmers associations, among others, to encourage co-investment.

Reading Improvement Program (RIP)

August 2017-August 2022

TEC: $54,960,103

This activity will increase access to quality education, ensuring that children are reading and gaining basic skills that are foundational to future learning and success. Major interventions include improving teachers’ effectiveness in the classrooms by providing training on reading instruction and coaching to more than 15,000 teachers, reviewing the national reading curriculum, strengthening schools’ use of student assessment results, and increasing the quality, availability, and use of reading materials.

This activity will also work to increase parents’ and community members’ involvement in education by strengthening parents associations, school and municipal education committees’ participation in planning and decision-making processes at the school level, and the expansion of services that support reading improvement, such as the creation of school libraries, conducting applied research on early grade reading, and strengthening monitoring and evaluation capacities in schools and at the national level.

Quality Reading Materials Activity (RM)

December 2017- December 2020

TEC: $9,588,301

This activity will increase the availability of quality reading materials for first to sixth grade students and teachers in at least 2,500 schools benefiting at least 700,000 students. USAID will fund the printing and distribution of the reading textbooks, teaching guides, and decodable, level-appropriate supplementary materials that will improve classroom practices and contribute to achieving quality education. Investments will work in close coordination with reading interventions under USAID/Honduras’ RIP. Together, the RM and RIP will strengthen early grade reading, a fundamental skill for all subsequent learning, by coordinating teacher education efforts to ensure teachers obtain the tools needed to help children improve their reading skills.

New Activities

Youth Employment for Migration (YEMP)Prevention

Propose $18-20 million

Start date: TBD

This activity is designed to increase employment of at-risk youth in high out-migration areas in support of Mission-wide efforts to reduce irregular migration to the U.S. by strengthening at-risk youth’s resilience to crime and increasing their income generating opportunities. Working through partnerships with public and private sector stakeholders, this activity will reach at least 500,000 at-risk youth to become productively engaged in the Honduran economy and society over a period of five years. Out of those 500,000 at-risk youth, 100,000 will 1) secure viable employment, 2) return to full formal education, alternative education, and/or technical/vocational training, or 3) create innovative at-risk youth enterprises including social entrepreneurship activities.

Infrastructure Platform

Propose TEC: $ 20 million

Start Date: TBD

Through the Infrastructure Platform, USAID/Honduras will implement small and medium scale infrastructure projects in support of all DOs under the new CDCS, as part of its efforts to prevent irregular migration and increase employment generation.

The small-scale projects shall not exceed $250,000 and may include, among others: improvements to education and health facilities, local water and sanitation infrastructure, tertiary road maintenance, paving of roads, outreach centers, public lighting, police stations, justice operators infrastructure, public parks, recreational spaces, markets, energy projects, and vocational centers.

New Food Security and Nutrition System Strengthening Activity

(NSS)

Propose TEC: $ 4,000,000

Propose Start Date: July

The activity will identify areas of high out-migration and food insecurity areas to prioritize nutrition interventions USAID will support decentralized health service providers through the GOH’s integrated children’s health program. This support includes scaling up basic nutrition services to implement community-based nutritional training centers, increasing access to and consumption of animal source foods to promote healthy growth and development for children, and implementing social behavior change messaging to improve nutrition practices. This activity will expand nutrition services to 50,000 households in areas of high out-migration.

Biodiversity and Water for Honduras’ Prosperity (BioAgua)

Proposed TEC:

$34,000,000

Propose Start Date: July

The Activity will strengthen biodiversity conservation and improve water management to support Honduras’ natural capital and promote inclusive and resilient economic growth. Some key actions under this activity include:

- Working with the GOH, civil society, and private sector to increase incentives for increasing investment in protected area management and increase areas under conservation through the creation of private reserves;

- Strengthening the accountability and sustainability of the Protected Area Conservation Fund (FAPVS), which supports Honduras’ public and private protected areas reserves;

- Building the Environment Prosecutor Office’s technical capacity to investigate and prosecute environmental crimes and will support existing safeguard mechanisms for environmental defenders;

- Generating information for decision-making in water allocations, disaster management, and conservation of critical ecosystems;

and

- Engaging municipal and local actors in conservation mechanisms for water-producing areas.

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

Description: DO2 contemplates construction among its actions. It furthers classifies the construction into four categories: 1) Refurbishing and maintenance of areas smaller than 1000 m2 under the healthy household component; 2) Small-scale installation/renovation of facilities for water management; 3) Small-scale construction of water-related infrastructure and the cumulative impacts of the irrigation activities at the watershed level; and 4) Construction/refurbishing of facilities such as schools,…