Attachment J.3 -DCN_2023_ALB_002_Supporting Albania’s EU Accession.pdf

DCN: 2023-ALB-002

US Agency for International Development (USAID) USAID Albania

Initial Environmental Examination (IEE)

Program/Project/Activity Data

Activity/Project Name:

Supporting Albania’s EU Accession through Improved Competitiveness

Assistance Objective: Create conditions for broad based, sustainable, and inclusive economic growth

Program Area: PROGRAM AREA EG 4 - Financial Sector PROGRAM AREA EG 5- Private Sector Productivity

Country(ies) and/or Operating Unit: USAID/Albania Originating Office: GDO, USAID Albania Date: 8 September 2023 X Original IEE/RCE Original IEE LOP Start Date:

IEE/RCE History DCN LOP End Date Original IEE:

Contract/Award Number (if known): NA Sector Type(s) from the ECD Advanced Search Tab (https://ecd.usaid.gov) Major: Agriculture Minor:

Recommended Environmental Determination(s):

X Categorical Exclusion ☐ Positive Determination ☐ Negative Determination ☐ With Conditions X Deferral Expiration date: September 2024

Additional Elements:

☐ Local Procurement ☐ Government to Government

☐ Donor Co-Funded ☐ Public International Organization (PIO) environmental and social policies and procedures applicable

☐ Climate Change Vulnerability Analysis (included) Climate Change Vulnerability Rating: Low

1. Background and Project Description

1.1 Purpose and Scope of IEE

The purpose of this IEE is to establish that activities under Objective 1 of the “Supporting Albania’s EU Accession through Improved Competitiveness “ project belong to classes belong to classes of actions eligible for Categorical Exclusions as set out in Agency regulations (22 CFR 216.2(c)) and that there are no foreseeable significant direct or indirect impacts that would preclude them from receiving a Categorical Exclusion. Upon approval of this document, the Categorical Exclusions are affirmed for the proposed project component. This analysis also documents the results of the proposed project component level Climate Risk Management process in accordance with USAID policy (specifically, ADS 201 mandatory reference 201mal).

USAID Albania / Supporting Albania’s EU Accession through Improved Competitiveness E&E Bureau IEE Template (Version 1 Jun 2023)

DCN: 2023-ALB-002 FY2029 (exact date TBD)

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

Meanwhile, for activities under Objective 2 of the Supporting Albania’s EU Accession through Improved Competitiveness “, the purpose of this IEE is to establish that projects/activities or specific aspects of such cannot be identified in sufficient detail to permit the completion of an IEE or EA at the time of preparing the Project Appraisal Document/Activity Approval Memo or similar approval document.

1.2 Project Description

The purpose of this Activity is to advance Albania’s market integration, improve competitiveness and inclusive growth to help accelerate the Country’s accession to the European Union (EU).

This Activity will help Albania meet the Copenhagen economic criteria for EU accession, which states that countries must have a functioning market economy and the capability to cope with the competitive pressures within the EU. Through leveraging USAID’s brand and expertise, while co-creating with the EU, host government counterparts and the private sector, the Activity seeks to create economic models that demonstrate progressive impact on Albania’s ability to meet the criteria for accession, advance inclusive economic development, and ensure that the approximation legislation needed to align with the EU Acquis are impactfully modeled at the implementation level. The Activity’s interventions will complement and amplify E&E Bureau’s new Regional Economic Growth Initiative and other multiple donors’ efforts to advance on EU requirements while contributing to economic growth in Albania.

The proposed Activity has two main objectives:

Objective I: Policy and legislative reforms drafted and instituted to boost food sector value chain(s) that advance Albania’s compliance with EU acquis, provide a model for other value chains and/or sectors, and support Albanian products’ market competitiveness.

Under this objective, USAID/Albania seeks to initiate, promote, and advocate for GoA institutions to adopt necessary regulatory changes needed to increase investment, support innovation and adaptation, and enhance competitiveness of the high-value processed food industry in Albania.

Objective II: Selected value chain actors within the food industry apply compliant EU policies, operations, and business practices to produce high quality products, and demonstrate increased competitiveness and ability to face the EU market pressures.

In addition to advancing policy and legislative reforms, USAID/Albania will set up a successful value chain(s) model which will demonstrate progressive impact on the country’s ability to meet the economic criteria for EU accession. The activity will support a successful model for producing food product value chain(s) in accordance with the quality and safety standards of the common EU market. The established model will encompass the full range of activities and services required to strengthen the value chain(s) to enter and compete in the EU common market. Value chains include input suppliers, producers, processors, traders and buyers, as well as the support services, workforce, and enabling environments that form a dynamic market system.

USAID Albania / Supporting Albania’s EU Accession through Improved Competitiveness

2. Conclusions of the Environmental Review

2.1 Recommended Environmental Determinations:

Categorical Exclusions:

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

Activities under Objective I:Policy and legislative reforms drafted and instituted to boost food sector value chain(s) that advance Albania’s compliance with EU acquis, provide a model for other value chains and/or sectors, and support Albanian products’ market competitiveness of the proposed project under §216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.);

Deferral of Environmental Review:

Meanwhile, the environmental review for activities under Objective II:Selected value chain actors within the food industry apply compliant EU policies, operations, and business practices to produce high quality products, and demonstrate increased competitiveness and ability to face the EU market pressures of the “Supporting Albania’s EU Accession through Improved Competitiveness” project cannot be completed because the activities under the proposed intervention are not yet defined in sufficient detail to evaluate the potential environmental impacts.

USAID/Albania is in the process of preparing a Notification for Funding Opportunities/Solicitation and will complete the required environmental review once the competitive process will be finalized with the selection of a winning approach/ Implementing Partner. At that stage USAID/Albania will have sufficient details to propose specific interventions in the framework of the project.

2.2 USAID Monitoring and Reporting

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

2.2.2 The AOR/COR is responsible for confirming that the IP includes environmental compliance requirements and monitoring results as part of their routine project reporting to USAID.

2.2.3 The AOR/COR is responsible for monitoring, to the extent practicable, that the IP complies with applicable host country environmental requirements.

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

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

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

2.3 Implementing Partner (IP) Environmental Compliance Monitoring and Reporting

2.3.1 The IP is required to comply with applicable host country environmental requirements.

2.3.2 If an individual activity is found to pose significant adverse environmental effects that have not been identified and addressed in the approved environmental review documents, new environmental review documents shall be developed to include environmental safeguards for such effects.

2.3.3 IPs shall report on environmental compliance requirements and monitoring results as part of their routine project reporting to USAID.

2.3.4 After the IP has finalized its activities at a specific site, the IP shall sign a Record of Compliance certifying that the organization met all applicable conditions and submit it to the COR/AOR. The COR/AOR shall keep the original for the project files and provide a copy to the MEO and BEO. The ROC shall be assigned a DCN and posted to the ECD.

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

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

3.2 Solicitations shall include Statements of Work with tasks for meeting environmental compliance requirements and appropriate evaluation criteria.

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

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

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

3.6 The USAID Mission will include an indicator for environmental compliance as part of the project’s performance monitoring plan. (For example, if an IEE has a threshold determination of negative determination, then a possible indicator is if the IP complied with the ERC/EMMP.)

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

4.1 Normally have a significant effect on the environment under §216.2(d)(1), including:

● Programs of river basin development;

● Irrigation or water management projects, including dams and impoundments;

● Agricultural land leveling;

● Drainage projects;

● Large scale agricultural mechanization;

● New lands development;

● Resettlement projects;

● Penetration road building or road improvement projects;

● Powerplants;

● Industrial plants;

● Potable water and sewerage projects other than those that are small scale.

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

4.3 Affect endangered and threatened species or their critical habitats per §216.5, FAA 118, FAA 119;

4.4 Provide support to extractive industries (e.g., mining and quarrying);

4.5 Promote timber harvesting per FAA 117 and 118;

4.6 Lead to new construction, reconstruction, rehabilitation, or renovation work;

4.7 Support agro-processing or industrial enterprises;

4.8 Provide support for regulatory permitting;

4.9 Lead to privatization of industrial facilities or infrastructure with heavily polluted property;

4.10 Research, testing, or use of genetically engineered organisms except in accordance with ADS

211; or

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

5. Revisions

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

6. Environmental Threshold Decision Clearances

Approval:

Mischere Kawas, Senior Development Advisor Date

Alma Kospiri, Mission Environmental Officer (MEO) Date

Zhaneta Shatri, Activity Manager/COR Date

Concurrence:

Poojan Tripathi, Bureau Environmental Officer (BEO) Date USAID Europe and Eurasia Bureau

Distribution:

▪ Activity File

▪ AOR/COR

▪ MEO

▪ BEO

▪ ECD

USAID Albania / Supporting Albania’s EU Accession through Improved Competitiveness E&E Bureau IEE Template (Version 1 Jun 2023)

Zhaneta Shatri Digitally signed by Zhaneta Shatri Date: 2023.09.27 16:49:57 +02'00'

Alma Kospiri Digitally signed by Alma Kospiri Date: 2023.09.28 09:45:19 +02'00'

Mischere Kawas

Digitally signed by Mischere Kawas Date: 2023.09.29 04:46:32 +02'00'

POOJAN BHASKER

TRIPATHI

Digitally signed by POOJAN

BHASKER TRIPATHI

Date: 2023.09.29 14:33:44 -04'00'

D C

N : 2

3-

A

LB

-0

A nn ex A :C lim at e R is k Sc re en in g an d M an ag em en tT oo l

1:

C om po ne nt s or S ub -a ct iv iti es

2:

Ti m e-fra m e an d G eo gr ap hy 3:

C lim at e R is ks

4:

C lim at e R is k

R at in g*

5:

H ow

C lim at e R is ks ar e A dd re ss ed in th e

A ct iv ity

6:

A cc ep te d C lim at e

R is ks

O bj ec tiv e 1:

P ol ic y an d le gi sl at iv e re fo rm s dr af te d an d in st itu te d to bo os t fo od se ct or va lu e ch ai n( s) th at ad va nc e A lb an ia ’s co m pl ia nc e w ith E U ac qu is ,p ro vi de a m od el fo ro th er va lu e ch ai ns an d/ or se ct or s, an d su pp or tA lb an ia n pr od uc ts ’m ar ke t co m pe tit iv en es s.

Lo w

M an y in te rv en tio ns co ul d re ve rt to vi rtu al op er at io ns

Lo w

O bj ec tiv e

S el ec te d va lu e ch ai n ac to rs w ith in th e fo od in du st ry ap pl y co m pl ia nt E U po lic ie s, op er at io ns ,a nd bu si ne ss pr ac tic es to pr od uc e hi gh qu al ity pr od uc ts ,a nd de m on st ra te in cr ea se d co m pe tit iv en es s an d ab ili ty to fa ce th e E U m ar ke t pr es su re s.

N /A

N /A

N /A m ea ns a re qu ire d el em en t, ac co rd in g to th e M an da to ry R ef er en ce

U

SA

ID

A lb an ia

Su pp or tin g Al ba ni a’ s

EU

A cc es si on th ro ug h

Im pr ov ed

C om pe tit iv en es s

E E B ur ea u

IE

E Te m pl at e (V er si on Ju n