ATTACHMENT J-9 - IEE.pdf

ME 22-26

ME/WEST BANK AND GAZA/ BUILDING REGIONAL ECONOMIC BRIDGES (BREB)

ME IEE TEMPLATE VERSION 3.3(5.21)

INITIAL ENVIRONMENTAL EXAMINATION

ACTIVITY DATA

Activity Name: Building Regional Economic Bridges (BREB) Activity

Geographic Location(s) (Country or Region): West Bank and Gaza Amendment (Yes/No), if Yes indicate # (1, 2...): No Implementation Start/End Date (FY or M/D/Y): 9/30/2022 – 9/29/2027 If Amended, specify New End Date: NA Solicitation or Award Number(s): TBD Award Type: Acquisition Implementing Partner(s): TBD Bureau Tracking ID: ME 22-26 Tracking ID of Related RCE/IEE (if any):

Tracking ID of Other, Related Analyses:

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit: West Bank and Gaza Mission Other Affected Operating Unit(s): NA Lead BEO Bureau: Middle East (ME) Original Funding Amount: $90 million If Amended, specify funding amount: NA If Amended, specify new funding total: NA Date Prepared: 1/12/2022

ENVIRONMENTAL COMPLIANCE REVIEW DATA

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

☒Negative (with conditions) ☐Positive ☐Deferred (per 22 CFR 216.3(a)(7)(iv)

IEE Expiration Date (if applicable):

Additional Analyses/Reporting Required:

Climate Risks Identified (#): Low ___7___ Moderate ___1___ High ___#___ Climate Risks Addressed (#): Low ___7___ Moderate ___1___ High ___#___

ME IEE TEMPLATE VERSION 3.3(5.21)

1.0 ACTIVITY DESCRIPTION

1.1 PURPOSE OF THE IEE

The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22 CFR 216), is to provide a preliminary review of the reasonably foreseeable effects on the environment of the USAID intervention described herein and recommend determinations and, as appropriate, conditions, for further supplemental analyses as the activity is developed.

Upon approval, these determinations become affirmed, and specified conditions become mandatory obligations of implementation.

This document provides an initial analysis for known activities and instructions for implementation. As applicable, requirements are specified for supplemental analyses and screening when context and activity specific information become available.

This IEE is a critical element of USAID’s mandatory environmental review and compliance process meant to achieve environmentally sound design and implementation.

It also documents the results of the Climate Risk Management process in accordance with USAID policy (specifically, ADS 201mal).

1.2 ACTIVITY OVERVIEW

The United States Agency for International Development/ West Bank and Gaza (USAID/ WBG) intends to award an acquisition activity through a competitive process, subject to availability of funding. The 60-month BREB activity aims to promote peace between the West Bank and Gaza (WBG) and Israel through expanded economic and research partnerships with the WBG, Israel, and the U.S. The activity will also support expanded trade opportunities for Palestinians across the Middle East and North Africa region.

1.3 ACTIVITY DESCRIPTION

The goal of BREB is to promote peace between the WBG and Israel through expanded economic, commercial, and applied research partnerships between the WBG, Israel, and the U.S.

Objectives/Components:

The BREB activity will promote joint initiatives that expand regional economic activity and cooperation. Potential joint initiatives could involve firms, research institutes, trade organizations, non-profit organizations, and individuals. The purpose of these initiatives will be to deepen economic linkages, building the foundations of peace. Activity interventions will be market driven and cost-shared with local counterparts.

BREB will have three main objectives/components as follows:

Objective/Component 1: Facilitate Cooperative Exchange and Knowledge Sharing

ME IEE TEMPLATE VERSION 3.3(5.21)

Objective/Component 2: Foster New Markets

Objective/Component 3: Enhance the Capacity of Targeted Entities

Sub-Objective/Component 1.1: Support Technology Transfer from Israel and United States to West Bank and Gaza

Israel’s position as a technology leader in multiple sectors means it is well placed to build lasting and mutually beneficial partnerships/alliances with Palestinian companies. Israel was previously the beneficiary of such technological exchange with the U.S. BREB would utilize and expand on this model throughout implementation.

The Contractor must promote domestic and foreign investment in Palestinian firms and take advantage of Israeli’s innovation and technology in productive sectors, including, but not limited to, ICT, agriculture, manufacturing, water, and energy, green technologies, and technologies and services for circular economy processes. Palestinian firms will benefit from transfer technologies and expertise, resulting in increased efficiency and productivity. These advancements will, in turn, drive increased profitability and employment.

Israeli firms will not only benefit financially from this technological exchange, but such partnerships can open new regional trade opportunities for both Israelis and Palestinians. U.S. firms have a similar ability to transfer technology and know-how to Palestinian firms. Firms will be selected based on their potential for growth and ability to enter new markets. To the extent possible, the Contractor must leverage on US transfer of innovations and technologies directly to Palestinian firms that would put them in equal level with Israeli ones, bringing some competition and interest from Israeli firms to collaborate with Palestinian companies.

The Contractor must support technology transfer either through direct technology purchases, joint ventures, licensing agreements, or other methods. The Contractor must focus on technology transfers that have positive environmental impacts which could include efficient water use, reduced energy consumption and green energy.

The Contractor must enable the attraction of greater private capital into WBG along with DFC and other financing, thus supporting firm growth and driving more self-sufficient and productive growth. Pairing grant funding with private capital can position and utilize funding from BREB as catalytic capital that can attract private funding. BREB funding can de-risk these investment opportunities and re-engage private capital thus creating a multiplier effect and increasing the overall funding to Palestinian firms.

The Contractor must utilize a Grants Under Contract (GUC) mechanism to help fund activities under this sub-component.

Sub-Objective/Component 1.2: Partnerships on Research and Development and Business Associations

ME IEE TEMPLATE VERSION 3.3(5.21)

Research institutions play an important role in scientific and technological development.

These same institutions play a role in disseminating this research to a wider audience and development of commercial applications. Bringing together Israeli, Palestinian, U.S., and/or regional research institutions can help identify research opportunities. They can develop solutions tailored to the specific country context, and explore opportunities to increase women’s participation in the economy.

Business associations play an important role in supporting cross border trade and cooperation. These associations advocate for policy and regulatory change. They also serve as training and service providers that can enable cross border trade and cooperation.

The Implementing Partner will support enhanced collaboration of businesses associations and support for joint Israeli, Palestinian, and/or regional business associations, with a focus on youth and women’s business networks and associations.

These associations support and advocate for ease of movement between Israel and the

WBG.

The Implementing Partner will support enhanced collaboration of research institutions at all levels for work. The implementer may utilize a GUC mechanism to help fund scholarships and partnerships/alliances under this sub-component.

Sub-Objective/Component 1.3: Strengthen Internship and Professional Development/Mentorship Programs

Developing professional connections between the Palestinian business persons/entrepreneurs and their Israeli and/or U.S. counterparts can foster long-term business relationships. These relationships can be especially impactful when geared toward Palestinian youth. They provide the youth with valuable skills and connections, while also expanding the pool of educated labor for Israeli and U.S. companies.

The Implementing Partner will develop an internship program with established companies in Israel and the U.S. that allow Palestinians to benefit from on-the-job training. These experiences allow individuals to develop practical skills and build an employment history.

In addition, Palestinians will establish connections with individuals and companies in their field. Israeli and U.S. firms will also benefit from valuable new talent. These internships will allow employees of the firms to see how Palestinians can be brought into their company and create value.

The Implementing Partner will develop a professional development and mentorship plan that establishes a program through which Palestinian entrepreneurs can learn from established entrepreneurs in Israel and the US. Established entrepreneurs will share their knowledge, skills, and experience, rather than having others learn through a process of trial and error. They will benefit from exposure to new viewpoints and perspectives.

ME IEE TEMPLATE VERSION 3.3(5.21)

The Contractor must ensure that the professional development and mentorship intervention is implemented based on practical needs of the Palestinian private sector and will not lead to brain drain from the Palestinian workforce.

The Contractor must support people-to-people economic exchanges (e.g., academic exchanges, research collaboration, mentorship programs) to enhance mutual understanding and cooperation. The Contractor must, where appropriate, strengthen existing programs and develop new ones that will facilitate these interactions, with focus on women and youth.

Objective/Component 2: Foster New Markets

Israeli and Palestinian companies have the potential to jointly enter new markets that might not be available to them individually. Palestinians have unique business connections to markets with limited Israeli trade. Israel has the infrastructure to get goods to market. Working together to enter new markets will provide benefits for Palestinians and Israelis, including the establishment of relationships and trust between both sides.

Sub-Objective/Component 2.1 Increase Access to Regional and International Markets

The Implementing Partner will support new market connections between Israeli and Palestinian companies, regionally and internationally. It will build trust between buyers and sellers in the region through information sharing and joint events.

The Implementing Partner will identify new markets, regionally and internationally. The Implementer will support businesses, including youth and women-led businesses, to market their products to these markets. The Implementer may utilize a GUC mechanism to support this sub-component.

Sub-Objective/Component 2.2 Export Support Services

Exporting presents businesses with a host of new challenges. These include compiling customs and border requirements, managing logistics, meeting quality standards, dealing with local legal requirements, and many more. Even with a market and buyer identified, experienced firms can have trouble exporting their product.

The Implementing Partner will develop and implement a program to train businesses and equip them with the skills to export to new markets. This will include supporting first time exports, as well as expanding and continuing to support firms that have exported previously. The implementer may utilize a GUC mechanism to support this sub-component.

Objective/Component 3: Support Capacity Development of Entities to Enable Cooperative Exchanges

Businesses, organizations, and other entities that could engage in peace building through cooperative activities lack the capacity to take full advantage of exchange opportunities.

ME IEE TEMPLATE VERSION 3.3(5.21)

This lack of capacity could be a result of a number of different factors, including financial, market access, product development, among others. Component 3 provides a set of interventions focused around developing the capacity of these entities.

Sub-Objective/Component 3.1: Firm level assistance to achieve sustainability partnership

Establishing and maintaining partnerships/alliances with Israeli or U.S. companies requires a high level of technical sophistication. There are several Palestinian and Israeli firms that, with some additional support, could achieve that level of technical capability.

The Implementing Partner will analyze barriers to cooperative exchanges between Palestinians and Israelis and provide direct firm-level assistance to companies to build their internal capacity.

Sub-Objective/Component 3.2: Develop a pipeline of bankable projects to support the DFC

The Joint Investment for Peace Initiative part of MEPPA envisions DFC support to Palestinian and Israeli ventures. The Joint Investment for Peace Initiative aims to attract private investment that promotes Palestinian economic development, increases economic cooperation between Palestinians and Israelis, as well as between Palestinians and American businesses, and contributes to the greater integration of the Palestinian economy into the international, rules-based business system.

The Implementing Partner will develop an action plan for identifying potential Palestinian firms and provide technical assistance to those firms during their application process. For sustainable impact, the Contractor must also provide aftercare services after businesses receive financing from DFC or other sources.

TABLE 2: DEFINED OR ILLUSTRATIVE ACTIVITIES AND SUB-ACTIVITIES

Activity 1 — Facilitate Cooperative Exchange and Knowledge Sharing Sub-activity 1.1: Support Technology Transfer from Israel and United States to West Bank and Gaza Illustrative Activities (activities under this component are illustrative and may include, but are not limited to):

● Foster commercial ventures among Palestinian and Israel and/or U.S. companies;

● Finance licensing and cross-licensing agreements between Palestinian and Israel and/or US companies;

● Finance the purchasing of existing technology from Israeli and/or U.S. companies; and

● Promote the adoption of Research and Development (R&D) agreements among Palestinian and

Israel and/or U.S. companies.

1.2: Partnerships on Research and Development and Business Associations Illustrative Activities (activities under this component are illustrative and may include, but are not limited to):

● Establish research partnerships/alliances on applied research and experimental development among Palestinian and Israeli and/or U.S. institutions;

● Develop and/or expand student exchange programs;

● Develop and implement faculty exchange programs;

ME IEE TEMPLATE VERSION 3.3(5.21)

● Develop and expand exchange programs focused on women’s economic participation;

● Facilitate communication among businesses associations to advocate for enhanced movement for goods and services; and

● Improve services (e.g., networking, referrals, professional development programs) at existing business associations to enhance cross-border commerce.

1.3: Strengthen Internship and Professional Development/Mentorship Programs Illustrative Activities (activities under this component are illustrative and may include, but are not limited to):

● Support and development exchanges between Israeli and/or U.S. companies and Palestinian Universities, emphasizing the participation of youth and women-led companies or employees;

● Support and develop internship programs for current and recent Palestinian University student and graduates; and

● Support and develop business and professional mentorship programs for entrepreneurs and business owners.

Activity 2 — Foster New Markets Sub-activity 2.1: Increase Access to Regional and International Markets Illustrative Examples (activities under this component are illustrative and may include, but are not limited to):

● Conduct export market studies;

● Support trade missions to targeted markets; and

● Support product displays, showrooms, trade fairs, and many other virtual platforms.

2.2: Export Support Services Illustrative Activities (activities under this component are illustrative and may include, but are not limited to):

● Strengthen exports to service providers by establishing additional services, including insurance and logistics;

● Provide export training courses to target businesses;

● Assist businesses in sustaining growth and exports; and

● Expand and augment existing export toolkits to support new products and markets.

Activity 3 — Support Capacity Development of Entities to Enable Cooperative Exchanges Sub-activity 3.1: Firm level assistance to achieve sustainability partnership Illustrative Activities (activities under this component are illustrative and may include, but are not limited to):

● Diagnostic on firm-level barriers for Palestinian and Israeli business to form partnerships/alliances; and

● Capacity development to improve Palestinian competitiveness within regional and global markets.

3.2: Develop a pipeline of bankable projects to support the DFC Illustrative Activities (activities under this component are illustrative and may include, but are not limited to):

● Identify companies that can benefit from the Joint Investment for Peace Initiative;

● Develop a pipeline of projects to support DFC investments;

● Provide technical assistance to support companies’ applications; and

● Identify alternative or additional financing sources for Palestinian businesses, either other donors or financial institutions.

Will this Activity involve construction1 as defined by ADS 201 and 303? Yes ☐ No ☒

1 Construction, as defined by ADS 201 and 303, includes: construction, alteration, or repair (including dredging and excavation) of buildings, structures, or other real property and includes, without limitation, improvements, renovation, alteration and refurbishment. The term includes, without limitation, roads, power plants, buildings, bridges, water treatment facilities, and vertical structures. In the box below, describe any construction planned for this Activity. Refer to ADS 201maw for required Construction Risk Management procedures.

ME IEE TEMPLATE VERSION 3.3(5.21)

2.0 BASELINE ENVIRONMENTAL AND SOCIAL INFORMATION

2.1 LOCATIONS AFFECTED AND SOCIAL-ENVIRONMENTAL AND SOCIAL CONTEXT

(ENVIRONMENT, PHYSICAL, CLIMATE, SOCIAL, THREATENED AND ENDANGERED SPECIES)

Geography: The West Bank and Gaza Strip are two separate geographical areas located between the Mediterranean to the east, Jordan to the east, west of Jordan, and Lebanon to the north, and separated by the state of Israel. Five distinctive regions based upon topography and climate are found in the West Bank and Gaza: the Jordan Valley; Eastern Slopes; Central Highlands; Semi-coastal; and Coastal. The West Bank is the larger area at approximately 5,700 km2, and is located on the central highlands, just north of the Jordan Valley, alongside much of Jordan's western border. The Gaza Strip is much smaller, approximately 365 km2, and runs along the southeastern coast of the Mediterranean, just north of Egypt's Sinai Peninsula. In the West Bank, most of the population lives in the central highlands, though the area also contains semi-arid rocky slopes, plains in the north and west, and a hot, dry rift valley. The highest elevation of the West Bank is the Tall Asur at 1,022 meters above sea level (masl), while the lowest point is the Dead Sea at 410 meters below sea level. Soils found in the West Bank include brown lithosol and loessial arid brown soils in the eastern slopes and grasslands, and fertile solids in the plains. Across the West Bank, approximately 12 percent of the land area is desert, eroded, or saline, and elsewhere soil cover is generally thin with rainfall sporadic. Gaza, by contrast, is marked by a set of low-lying sand dunes along the Mediterranean coast. This coastal plain slopes gently up to an elevation of 90m.

Climate: The West Bank and Gaza have a temperate climate, with temperatures and precipitation levels that vary with altitude. Mean summer temperatures range from 30°C in Jericho (eastern West Bank) to 25°C in Gaza and 22°C in Hebron (southern West Bank). Mean winter temperatures range from 13°C in Jericho and Gaza to 7°C in Hebron. The West Bank includes as many as six climate zones, ranging from extremely arid to humid. Annual rainfall in the West Bank ranges from 650 millimeters (mm) in the west to less than 100mm in the east.

The long-term historical average annual rainfall in the West Bank and Gaza are approximately 454mm and 372mm, respectively. The West Bank terrain is mostly rugged, with some vegetation in the west and predominantly barren areas in the east. Gaza has flat and rolling terrain, and a sand- and dune-covered coastal plain.

Biodiversity: At the crossroads of Africa, Asia, and Europe, the West Bank and Gaza are host to rich biodiversity, with approximately 51,000 total species. As of the 2015 Convention of Biological Diversity report, this includes 373 bird species, 297 fish, 92 mammals, 81 reptiles, and 5 amphibians, as well as more than 2,000 plant species, of which 54 are endemic. Large mammals found include Striped Hyena, Syrina Wolf, three species of Gaelle, and wild cats. The only endemic mammal in the Gaza Strip is the Buxton's Jird, found in the sand dunes of the southern coastal plains. Nearly all of the higher mammals are on the Red List as threatened, extinct, or rare, and there are seven species of mammals that have been extirpated, including the Cheetah, Syrian Brown Bear, and Roe Deer. There are 277 bird species that migrate through the region, including a high percentage of global Levant Sparrowhawk, as well as Lesser Spotted Eagles, Honey Buzzards, and Steppe Buzzards. Of the 81 reptile species, only 6 are aquatic with the rest terrestrial. The Nile crocodile is locally extinct. Sea turtles found in Gaza include the Loggerhead and Green turtles. Overall, there are 3 threatened mammals, 10 threatened bird species, and 4 threatened reptiles.

ME IEE TEMPLATE VERSION 3.3(5.21)

Demographic & Economic Information: The current population of West Bank and Gaza is approximately 5.0 million people (divided 2.0 million in Gaza and 3.0 million in the West Bank), and its population is expected to reach over 9 million by 2050. In the West Bank, the population growth rate is 2.1%, while in Gaza is 3.3%. The urbanization rate in the West Bank and Gaza is 3%, with approximately 77% of the total population currently living in urban areas.

Among various socio-economic and environmental challenges, key issues include water scarcity, limited land and natural resources, rapid population growth, urbanization, land degradation, and high levels of poverty. Water scarcity is of particular concern for the West Bank and Gaza. The annual water share for inhabitants is less than 200 cubic meters (m3) per capita, which is well below the World Health Organization (WHO) water scarcity limit of 500m3.

Challenges related to water scarcity, agricultural productivity, coastal areas, and human health will likely be exacerbated by climate change. The significant economic, environmental, and political challenges faced by the region have greatly compromised the West Bank and Gaza’s capacity to adapt to climate change impacts.

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER INTERNATIONAL

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

Key Legislation:

● Environmental Law Number 7 (1999): The main governing law for the Environment Quality

Authority (EQA) Based upon Article 33 of the Constitution (Basic Law). The Environmental Law Number 7 gives a wide mandate to the EQA, including lead responsibility in 10 technical fields (solid waste, water quality, wastewater, agricultural chemicals, marine environment, air and noise pollution, nature resource extraction, nature protection, biodiversity and desertification) and a supporting role in the areas of land use, radiation and environmental emergencies. This law also gives the EQA lead responsibility for environmental awareness, monitoring and inspection, and environmental approvals and establishes the Environmental Impact Assessment requirements.

● Environmental Impact Assessment Policy (2000): Describes the conditions under which private or public development activities must be conducted with regards to environmental protection and management. It aims to protect environmental sustainability and to prevent irreversible impacts and mitigate any reversible damage from development activities. It defines those activities for which an Environmental Impact Assessment (EIA) or an Initial Environmental Evaluation (IEE) are required.

● Water Law of 2014: Aims to better manage and develop water resources of the West Bank and Gaza through establishment of a new phase for water and wastewater sector governance and management. Designates the Water Authority as under the responsibility of the Cabinet to separate policy and regulatory functions, which previously fell under the responsibility of the Palestinian Water Authority.

● Regulation on the Re-Use of Treated Wastewater in Agriculture (2012): This regulation governs the use of treated water for agricultural purposes. Article 3 establishes the conditions for treated water reuse in crop irrigation. Article 6 prohibits the use of treated wastewater as a water source for livestock and poultry. Article 7 defines the conditions for the transfer of treated wastewater. Article 8 states the preventive measures within the farm when dealing with treated wastewater.

● Local Authorities Law No. 1 (1997): Seeks to organize the system of local Government and unify its legal framework. The Law lists twenty-seven activity areas under municipal responsibility, and grants local Councils the option to issue rulings in these activity areas.

ME IEE TEMPLATE VERSION 3.3(5.21)

● Public Health Law (2004): Establishes the Ministry of Health as the institution responsible for licensing waste facilities under Article 2. Under Article 39, characterizes MoH -- in coordination with relevant competent bodies -- shall determine those health hazards that negatively affect public and/or environmental health. Additionally, it establishes that the MoH, in coordination with relevant bodies, shall specify instructions for the transport, storage, treatment, and/or disposal of hazardous materials and waste.

Applicable National Strategic Plans include:

● Climate Change Adaptation Strategy and Programme of Action for the Palestinian Authority

● National Strategy for Solid Waste Management (2017-2022): The NSSWM was adopted in August 2017, following the first National Strategy for SWM 2010-2014. The NSSWM functions as the overarching framework of all solid waste management decisions, programs, activities and medium-term investment plans, aiming at developing the SW sector. The National Strategy also seeks to align Palestinian SWM policies with SDG 3 (Health and Well-being) and 11 (Sustainable cities and human settlements). The NSSWM includes 8 strategic objectives such as enhancing the legislative and organizational framework for SWM; strengthening institutions; environmentally safe management; financial sustainability; treatment and inventory of hazardous, medical, and other special wastes; increased private sector participation; enhanced public participation and awareness; and more effective information and monitoring systems.

● The National Development Plan 2021-2023: The National Development plan (NDP) is meant to be a tri-annual plan presenting the Palestinian Authority’s strategy in Economic Development and Employment; Good Governance and Institutions Building; Social Protection and Development and Infrastructure. The NDP 2021-2023 aims to promote industrial, agricultural, and tourism production, reduce unemployment, fight poverty, and enhance the role of women and youth, increase interest in technical and vocational education and training (TVET), uphold public rights, bolster transparency, strengthen and construct industrial parks, create development-oriented entrepreneurial ventures, promote investment in clean energy, pay attention to water sources, and lay the ground for national collective action to strengthen the resilience of citizens by improving health, education, economy, social protection, and other basic services that are critical to people’s lives.

2.3 COUNTRY/MINISTRY/MUNICIPALITY REGULATORY CAPACITY ANALYSIS

Environmental governance is complicated by multiple factors in the West Bank and Gaza.

Different sets of laws, and law enforcement capabilities, are being applied by different Israeli and Palestinian institutions. The overall ability of the Palestinian authorities to manage the environment is further impacted by limited financial resources and political instability.

Additionally, environmental management and governance faces challenges presented by divides within the Palestinian territories, which can undermine the Palestinian Authority's ability to function in Gaza. On top of all of this, the EQA is a relatively small entity with a mandate larger than its capacity, and typically forced in practice to attend to urgent needs rather than strategic priorities and objectives.

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL AND SOCIAL RISK

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ACTIVITY 1: FACILITATE COOPERATIVE EXCHANGE AND KNOWLEDGE SHARING

TABLE 3A. POTENTIAL IMPACTS – ACTIVITY 1

Project/Activity Potential environmental and social impacts Activity 1: Facilitate Cooperative Exchange and Knowledge Sharing Sub-activity 1.1: Support Technology Transfer from Israel and United States to West Bank and Gaza

Finance the purchasing of existing technology from Israeli and/or U.S.

companies:

Certain technologies might include technologies for businesses with operations/processes that have potential negative environmental and social impacts. Those businesses involved in manufacturing or production of commodities could potentially pose environmental and related public health and safety risks, which vary as broadly as the types of enterprises. It should be noted that small businesses can be more pollution-intensive than larger enterprises (per unit of production) if not properly planned and managed.

Insufficient knowledge, inefficient practices, improper use of material (for example, chemicals), inadequate treatment of waste, intensive use of nonrenewable resources, lack of proper health and safety safeguards, etc. could pose environmental and public health and safety risks including air pollution, water resources contamination, resources depletion, injuries, and other risks.

For other interventions:

Interventions under this Objective related to education, technical assistance, training, analysis, studies, academic or research workshops and meetings, document and information transfer are not expected to cause any potential adverse environmental or social impacts.

Sub-activity 1.2:

Partnerships on Research and Development and Business Associations

Interventions under this Objective related to education, technical assistance, training, analysis, studies, academic or research workshops and meetings, document and information transfer are not expected to cause any potential adverse environmental or social impacts.

Sub-activity 1.3:

Strengthen Internship and Professional Development/Mentorship Programs

Interventions under this Objective related to education, technical assistance, training, analysis, studies, academic or research workshops and meetings, document and information transfer are not expected to cause any potential adverse environmental or social impacts.

ACTIVITY 2: FOSTER NEW MARKETS

TABLE 3B. POTENTIAL IMPACTS – ACTIVITY 2

Activity Potential environmental and social impacts Activity 2: Foster New Markets Sub-activity 2.1: Increase Access to Regional and International Markets

Interventions under this Objective related to education, technical assistance, training, analysis, studies, academic or research workshops and meetings, document and information transfer are not expected to cause any potential adverse environmental or social impacts.

Sub-activity 2.2: Export Support Services

Interventions under this Objective related to education, technical

ME IEE TEMPLATE VERSION 3.3(5.21)

assistance, training, analysis, studies, academic or research workshops and meetings, document and information transfer are not expected to cause any potential adverse environmental or social impacts.

ACTIVITY 3: SUPPORT CAPACITY DEVELOPMENT OF ENTITIES TO ENABLE COOPERATIVE

EXCHANGES

TABLE 3C. POTENTIAL IMPACTS – ACTIVITY 3

Activity Potential environmental and social impacts Activity 3: Support Capacity Development of Entities to Enable Cooperative Exchanges

Sub-activity 3.1: Firm level assistance to achieve sustainability partnership

Interventions under this Objective related to education, technical assistance, training, analysis, studies, academic or research workshops and meetings, document and information transfer are not expected to cause any potential adverse environmental or social impacts.

Sub-activity 3.2: Develop a pipeline of bankable projects to support the

DFC

Interventions under this Objective related to education, technical assistance, training, analysis, studies, academic or research workshops and meetings, document and information transfer are not expected to cause any potential adverse environmental or social impacts.

4.0 ENVIRONMENTAL DETERMINATIONS

4.1 RECOMMENDED ENVIRONMENTAL DETERMINATIONS

The following table summarizes the recommended determinations based on the environmental analysis conducted. Upon approval, these determinations become affirmed, per 22 CFR 216.

Specified conditions, detailed in Section 5, become mandatory obligations of implementation, per ADS 204.

TABLE 4: ENVIRONMENTAL DETERMINATIONS

Activities Categorical Exclusion

Citation (if applicable) Negative Determination

Activity 1: Facilitate Cooperative Exchange and Knowledge Sharing Sub-activity 1.1: Support Technology Transfer from Israel and United States to West Bank and Gaza

22 CFR 216.2(c)(2)(i)(iii)&(v) ☒ Sub-activity 1.2: Partnerships on Research and Development and Business Associations

22 CFR 216.2(c)(2)(i)(iii)&(v) ☐

Sub-activity 1.3: Strengthen Internship and Professional Development/Mentorship Programs

22 CFR 216.2(c)(2)(i)(iii)&(v) ☐

Activity 2: Foster New Markets Sub-activity 2.1: Increase Access to Regional and International Markets

22 CFR 216.2(c)(2)(i)(iii)&(v) ☐

Sub-activity 2.2: Export Support Services 22 CFR 216.2(c)(2)(i)(iii)&(v) ☐ Activity 3: Support Capacity Development of Entities to Enable Cooperative Exchanges Sub-activity 3.1: Firm level assistance to 22 CFR 216.2(c)(2)(i)(iii)&(v) ☐

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achieve sustainability partnership Sub-activity 3.2: Develop a pipeline of bankable projects to support the DFC

22 CFR 216.2(c)(2)(i)(iii)&(v) ☐

4.2 CLIMATE RISK MANAGEMENT

This section summarizes the methodology used and findings of the CRM Screening, in accordance with ADS 201mal. The project design team, in consultation with the CIL, considered the potential effect of climate risks/stressors on the sustainability of the project (changing precipitation patterns, rising temperature, floods, droughts, fires, landslides, etc.) in addition to the impact of project activities on the climate (increased greenhouse gas emissions, land use changes, etc.).

The activity design team, in consultation with the CIL, considered the potential effect of climate risks/stressors on the sustainability of the activity in addition to the impact of project activities and sub-activities on the climate (increased greenhouse gas emissions, land use changes, etc.).

The screening for climate change risk for this award indicated that all planned activities are LOW risk except the Technology Transfer from Israel and United States to West Bank and Gaza as Moderate risk.

See Annex 1 for the complete CRM table.

5.0 CONDITIONS AND MITIGATION MEASURES

5.1 GENERAL CONDITIONS

The environmental determinations in this IEE are contingent upon full implementation of the following general implementation and monitoring requirements, as well as ADS 204 and other relevant requirements.

5.1.1 During Pre-Award:

5.1.1.1 Pre-Award Briefings: As feasible, the design team and/or the cognizant environmental officer(s) (e.g., MEO, REA, BEO) will provide a pre-award briefing for potential offerors on environmental compliance expectations/responsibilities at bidders’ conferences.

5.1.1.2 Solicitations: The design team, in coordination with the A/CO, will ensure solicitations include the appropriate environmental compliance requirements and evaluation criteria. A/CO will ensure technical and cost proposal requirements include approach, staffing, and budget sufficient for complying with the terms of this IEE.

5.1.1.3 Awards: The A/COR, in coordination with the A/CO, will ensure all awards and sub-awards, include the appropriate environmental compliance requirements;

including budget sufficient to ensure environmental mitigation and monitoring implementation and oversight.

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5.1.2 During Post-Award:

5.1.2.1 Post-Award Briefings: The A/COR and/or the cognizant environmental officer(s) (e.g., MEO, REA, BEO) will provide post-award briefings for the IP on environmental compliance responsibilities.

5.1.2.2 Environmental Mitigation and Monitoring Plan(s): When required as a condition of the approved IEE, the A/COR will ensure the IP develops, obtains USAID approval for, and implements Environmental Mitigation and Monitoring Plan(s) (EMMP) that appropriately respond the environmental and social impacts and risks identified in the IEE or subsequent environmental screenings of sub-activities.

5.1.2.3 Work Plans and Budgeting: The A/COR will ensure the IP integrates environmental compliance requirements in work plans and budgets to comply with requirements, including EMMP implementation and monitoring.

5.1.2.4 Staffing: The A/COR, in coordination with the IP, will ensure all awards have staffing capacity to implement environmental compliance requirements.

5.1.2.5 Records Management: The A/COR will maintain environmental compliance documents in the official Activity file and upload records to the designated USAID environmental compliance database system.

5.1.2.6 Host Country Environmental Compliance: The A/COR will ensure the IP complies with applicable and appropriate host country environmental requirements unless otherwise directed in writing by USAID. However, in the case of a conflict between the host country and USAID requirements (as specified in 22 CFR 216 and ADS 204), the more stringent shall govern. Specific variances may be approved in writing by the BEO with appropriate justification.

5.1.2.7 Work Plan Review: The A/COR will ensure the IP verifies, at least annually or when activities are added or modified, that all activities remain with the scope of the IEE. Activities outside of the scope of the IEE cannot be implemented until the IEE is amended or other specific direction is given by the A/CO or BEO.

5.1.2.8 IEE Amendment: If new activities are introduced or other changes to the scope of this IEE occur, an IEE Amendment may be required. The A/COR will consult with the cognizant environmental officer(s) (e.g., MEO, REA, BEO).

5.1.2.9 USAID Monitoring Oversight: The A/COR or designee, with the support of the cognizant environmental officer(s) (e.g., MEO, REA, BEO), will ensure monitoring of compliance with established requirements (e.g., by desktop reviews, site visits, etc.).

5.1.2.10 Environmental Compliance Reporting: The A/COR will ensure the IP includes environmental compliance updates in regular Activity reports, using indicators as appropriate; develops and submits periodic Environmental Mitigation and

ME IEE TEMPLATE VERSION 3.3(5.21)

Monitoring Reports (EMMRs); and completes and submits a Record of Compliance (RoC) describing their implementation of EMMP requirements in conjunction with the final EMMR or at the close of sub activities, as applicable. If required by the BEO or Mission, the A/COR must ensure that the IP prepares a closeout plan consistent with contract documentation for A/COR review and approval that outlines responsibilities for end-of-project operation, the transition of other operational responsibilities, and final EMMR with lessons learned.

5.1.2.11 Corrective Action: When noncompliance with IEE or EMMP or unforeseen environmental or social impacts are identified, IPs must notify the A/COR, place a hold on activities, take corrective action as determined necessary by the A/COR and MEO, and report on the effectiveness of corrective actions. The A/COR initiates the corrective action process and ensures the IP completes and documents their activities. Where required by the BEO or Missions, ensure Record of Compliance is completed.

5.2 AGENCY CONDITIONS

5.2.1 Sub-award Screening: The A/COR will ensure the IP uses an adequate environmental screening tool to screen any sub-award applications and to aid in the development of EMMPs. The A/COR and MEO will review and approve the environmental screening and associated EMMPs, which will be copied to the Regional Environmental Advisor (REA) and BEO.

5.2.2 Other Supplemental Analyses: The A/COR will ensure supplemental environmental analyses that are called for in the IEE are completed and documented.

5.3 ACTIVITY SPECIFIC CONDITIONS

5.3.1 The IP will ensure compliance with all host government and USAID requirements for disease prevention and ensure its staff and volunteers receive appropriate and timely guidance and training on the latest mitigation measures to prevent the spread of COVID-19 and other infectious diseases. This includes, but is not limited to proper hygiene, use of masks and gloves, cleaning/disinfecting, and social distancing, as appropriate.

5.4 MITIGATION MEASURES

The mitigation measures presented in this section constitute the minimum required based on available information at the time of this IEE and the environmental analysis in Section 4. These measures shall provide general direction for completing the Activity Environmental Mitigation and Monitoring Plan (EMMP) and/or the EA and PERSUAP, if required.

ME IEE TEMPLATE VERSION 3.3(5.21)

TABLE 5A. SUMMARY OF MITIGATION MEASURES

Activity Mitigation Measure(s) Sub-activity 1.1:

Support Technology Transfer from Israel and United States to West Bank and Gaza

Interventions under this objective require the Implementing Partner (IP) to conduct adequate screening to determine the potential social-environmental impacts and develop appropriate mitigation and monitoring measures to be reviewed and approved by USAID prior to implementation:

The following mitigation measures are required for all interventions related to any assistance related to Support Technology Transfer from Israel and United States to West Bank and Gaza :

1. The IP must develop a plan to create appropriate environmental screening criteria, tools, and procedures. This plan will include the procedure to screen the technology (including the equipment or machinery) for any potential impacts as a result of the operation. This plan to be approved by the AOR and MEO and be submitted with the IP work plan.

2. Based on findings from the environmental screening, the IP must perform environmental reviews of selected technology (including equipment/machinery) that generate impacts of concerns and develop environmental monitoring and mitigation plan (EMMP), before any assistance (transfer or technology or purchasing equipment/machinery) can be approved.

3. The IP must work closely with the beneficiary firms to develop the EMMPs.

The IP shall help them to implement the mitigation and monitoring plans and help in developing their environmental strategies including, as appropriate, SOPs.

4. The IP must factor any potential climate change risks in the planning and design of the activity.

5. The IP shall consider USAID principles provided under USAID’s environmental sector guidelines (as applicable) (https://www.usaid.gov/environmental-procedures/sectoral-environmental-social-best-practices/sector-environmental-guidelines-resources) and other technical sources aimed at improving businesses/firms environmental operations.

Note: Assistance for the procurement (including payment in kind, donations, guarantees of credit) any pesticide (including pesticide treated seeds), herbicide, rodenticide must be approved by USAID and may require the preparation of Pesticides Evaluation Report and Safer Use Action Plan (PERSUAP) and BEO approval prior to providing the assistance.

6.0 LIMITATIONS OF THIS INITIAL ENVIRONMENTAL EXAMINATION

The determinations recommended in this document apply only to activities and sub-activities described herein. Other activities that may arise must be documented in either a separate IEE, an IEE amendment if the activities are within the same activity, or other type of environmental

ME IEE TEMPLATE VERSION 3.3(5.21)

compliance document and shall be subject to an environmental analysis within the appropriate documents listed above.

It is confirmed that the activities described herein do not involve actions normally having a significant effect on the environment, including those described in 22 CFR 216.2(d).

Any of the following actions would require additional environmental analyses and environmental determinations:

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

● Affect endangered and threatened species or their critical habitats per §216.5, FAA

118, FAA 119;

● Provide support to extractive industries (e.g. mining and quarrying) per FAA 117;

● Promote timber harvesting per FAA 117 and 118;

● Lead to new construction, reconstruction, rehabilitation, or renovation work per

§216.2(b)(1);

● Support agro-processing or industrial enterprises per §216.1(b)(4);

● Provide support for regulatory permitting per §216.1(b)(2);

● Lead to privatization of industrial facilities or infrastructure with heavily polluted property per §216.1(b)(4);

● Research, testing, or use of genetically engineered organisms per §216.1(b)(1), ADS

211; and

● Assist the procurement (including payment in kind, donations, guarantees of credit) or use (including handling, transport, fuel for transport, storage, mixing, loading, application, clean-up of spray equipment, and disposal) of pesticides or activities involving procurement, transport, use, storage, or disposal of toxic materials.

Pesticides cover all insecticides, fungicides, rodenticides, etc. covered under the Federal Insecticide, Fungicide, and Rodenticide Act per §216.2(e) and §216.3(b).

7.0 REVISIONS

Per 22 CFR 216.3(a)(9), when ongoing programs are revised to incorporate a change in scope or nature, a determination will be made as to whether such change may have an environmental impact not previously assessed. If so, this IEE will be amended to cover the changes. Per ADS 204, it is the responsibility of the USAID A/COR to keep the MEO/REA and BEO informed of any new information or changes in the activity that might require revision of this environmental analysis and environmental determination.

ME IEE TEMPLATE VERSION 3.3(5.21)

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION

ACTIVITY NAME: Building Regional Economic Bridges (BREB) Activity

Bureau Tracking ID: ME 22-26

Approval: Clear w/ edits 1/28/2022 Aler Grubbs, Mission Director Date

Clearance: Clear w/ edits 1/27/2022 Jessica Zaman, Deputy Mission Director Date

Clearance:

Amy Southworth

1/26/2022

Amy Southworth, Program Officer Date

Clearance:

Clear

1/26/2022

Matthew Cohen, Technical Office Director Date

Clearance: Fadi Abdellatif - clear 1/26/2022 Fadi Abdellatif, Economic Growth and Infrastructure Office Team

Leader Date

Clearance: Drafter 1/26/2022 Anan Masri, Mission Environmental Officer Date

Clearance: CJF - Cleared by email 3-Feb-22 Christopher Frey, Regional Environmental Advisor Date

Concurrence: 2/4/2022 Jeff Ploetz, ME Bureau Environmental Officer Date

DISTRIBUTION: Award Files, Environmental Compliance Database

ATTACHMENTS:

Annex 1: Climate Risk Management Summary Table for Activity

ME IEE TEMPLATE VERSION 3.3(5.21)

ANNEX 1. ACTIVITY CLIMATE RISK MANAGEMENT SUMMARY TABLE

Tasks/Defined or Illustrative Interventions

Climate Risks2 Risk Rating3

How Risks are Addressed4

Opportunities to Strengthen Climate Resilience5

Sub-activity 1.1: Support Technology Transfer from Israel and United States to West Bank and Gaza

-For assistance related to Technology transfer (including purchase of equipment/machinery), the following are illustrative examples of potential risks, risks will depend on the nature of business and technology):

*Increased temperatures along with increased frequency and/or intensity of heat waves, storms, and floods may contribute to power outages, shortage of water, decreased worker productivity, and reduced output in key value chains.

- For technical assistance/capacity building/training activities, both venues and access routes may be impacted by increased incidence and/or severity of climate related extreme events (e.g., heat waves, sea/wadi level rise, and flooding) causing delays or disruption in conducting activities

Moderate

Low

* When planning trainings and similar activities, the IP should consider seasonal forecasts and rainy seasons when choosing dates, and use contingency planning and consider virtual trainings as options

*Technologies (and equipment/machinery ) will be selected/ procured to have the least pollution footprint possible to reduce the negative impact of operations on the climate.

*The equipment/ machinery will be selected with proper operating ratings that can withstand the anticipated extreme weather events and be stored in a safe…