Attachment_J._5b_Asia_14-125_EG_IEE.pdf

ENVIRONMENTAL COMPLIANCE FACESHEET & AMENDMENT #2 TO

THE REQUEST FOR CATEGORICAL EXCLUSION (INITIAL

ENVIRONMENTAL EXAMINATION)

Objective: Objective 4/ Economic Growth

Program / Project Title: The USAID CAR/EG IQC consisting of two (2) components:

The USAID Macroeconomic Foundations for Growth

IQC (EG MACRO)

The USAID Microeconomic Foundations for Growth

IQC (EG MICRO)

Competitive Markets and Trade

Program Areas: 1. Macroeconomic Foundation for Growth

2. Trade and Investment

3. Financial Sector

6. Private Sector Competitiveness

Program Elements: 1.1 Fiscal Policy

2.1 Trade and Investment Enabling Environment

3.1 Financial Sector Enabling Environment

6.1 Business Enabling Environment

Country/Region: Central Asia (Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan) and Afghanistan

Funding Period: FY2011 – FY2021

Resource Levels/Amount(s): $200 million

Statement Prepared by: Bryan Byrne, Private Enterprise Officer, Economic Development Office

Date: 6/26/2014

IEE Amendment? Yes No DCN of Original IEE: Asia 11-51 DCN of AMD 1: Asia 11-132

Environmental Media and/or Human Health Potentially Impacted (check all that apply):

None Air Water Land Biodiversity Human health Other

Asia 14-125

Environmental Action(s) Recommended (check all that apply):

Categorical Exclusion(s) Initial Environmental Examination:

Negative Determination: no significant adverse effects expected regarding the proposed activities, which are well defined over life of activity. IEE prepared:

With conditions as established in the IEE Amendment #1.

SUMMARY OF FINDINGS

The purpose of this Amendment #2 to the IEE (RCE) Asia: 11-51 is to modify original IEE so that it duly and timely reflects on 1) the increased level of funding from $100M to $200M, and 2) extension of the LOP from FY 2019 to FY2021.

The current set of Economic Growth activities covered under Objective 4/Economic Growth in all five Central Asian countries (Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan) remains the same in type, nature and scope.

All previously established conditions and limitations remain in force for the increased LOP funding level and LOP duration established in this Amendment # 2.

USAID/CAR and Kyrgyz Republic Missions’ A/CORs shall regularly check on implementation of activities and shall seek to ensure that all activities are in full compliance with the environmental conditions approved in the original and amended IEEs.

Background

To date, the USAID/Central Asia and USAID/Kyrgyz Republic Missions have programmed funds for the following activities covered by the IEE (RCE) Asia: 11-51 and its amendment Asia 11 -132.

Implementing mechanisms

Effective Date

End Date Description of activities

Macroeconomic Foundations for Growth IQC (regional)

7/1/2011 6/30/2016 The IQC covers the subsidiary mechanisms detailed below.

Microeconomic Foundations for Growth IQC (regional)

7/1/2011 6/30/2016 No mechanisms under this IQC have been awarded. The first will be the Economic Growth Project (see below)

Regional Economic Integration Activity (REC)(regional)

9/30/2011 3/31/2015 REC, a Task Order under the Macro IQC focuses on trade policy and trade promotion, primarily in Kazakhstan and Uzbekistan. Over the last two years, it has extended its services to provide technical assistance to the government of Tajikistan concerning WTO Accession. It is primarily focused on business forums, trade promotion between Central Asia and Afghanistan, and market research for vendors trying to sell to the USG in Afghanistan.

REFORMA (Kyrgyzstan) 9/26/2011 9/25/2014 REFORMA is funded under the MACRO IQC as a Task Order. Operating only in the Kyrgyz Republic, it has focused on public-private dialogues, human and capacity building for public agencies, and public policy to reform the business enabling environment. It has provided some computer equipment to beneficiaries.

Macroeconomic Project in Kazakhstan and Turkmenistan (MEP)

10/1/2011 9/30/2016 MEP provides technical assistance on public governance, finance, and trade policy in Kazakhstan and Turkmenistan.

Economic Growth Project in Kyrgyzstan

(EGP)

TBD TBD In procurement, EGP is designed to facilitate reforms in the Kyrgyz business enabling environment, vocational education, and business competitiveness training and policy support at the level of firms and value chains.

Competitiveness Trade and Markets

TBD TBD In design, the CTM will provide technical assistance for trade policy, facilitation, promotion, and business enabling environment reforms in all of the Central Asian Republics. It will work closely with USAID/ Afghanistan, USAID/Pakistan, and USAID/India on business promotion and public-private dialogues to strengthen competitiveness and reduce trade barriers.

All of the existing projects and their activities have qualified for a CE, and no environmental compliance actions have been required. The program originators expected that less than 5% of funding would be spent for activities that qualify for a Negative Determination with Conditions (NDC) such as small-scale construction and rehabilitation, the set-up of small agricultural and small business demonstration plots and pilots, and the procurement of equipment and machinery. These would have required EDD, EM, framework and site-specific EMMPs. It was also expected that some limited procurement of electric and electronic equipment could be procured. USAID/ CAR and USAID/Kyrgyz Republic Mission AORs and CORs as well as Mission Environmental Officers regularly monitored the implementation of activities by meeting with implementing partners and field visits. They found that no NDC activities took place during the period FY 2012-2014 except for limited procurement of computers under

REFORMA. The Mission anticipates that during the period 2015 – 2021, NDC activities will take place and implementing partners will have to screen, monitor, mitigate and report to USAID in accordance with terms established in the IEE Amendment #1 Asia 11-132.

Competitive Markets and Trade Project Goal, Components and Deliverables

The goal of the Competitive Trade and Markets (CTM) mechanism is to increase the ability of Central Asian countries and their domestic companies to engage in sustained commercial partnerships with counter parts in South Asia (Afghanistan, Pakistan and India) to produce intermediate and final produce goods and services that are destined for global supply chains. To reach their potential businesses and governments must systematically address inter-related trade policy, facilitation, promotion and competitiveness problems that inhibit cross-border transit and trade. Furthermore, they will have to improve domestic investment climates and business enabling environments to increase the capacity of firms within value chains to improve quality, production efficiency and coordination.

Project Components

Component 1: Trade Policy

• Task 1: Technical Assistance to countries considering, negotiating or implementing WTO norms. Turkmenistan (support), Tajikistan (implementation), Kazakhstan (negotiations)

• Task 2: Organize an annual trade policy conference in support of trade between Central and South Asia.

Component 2: Trade Facilitation

• Task 1: Advance World Trade Organization Trade Facilitation Agreement adoption and compliance among existing WTO members.

• Task 2: Support International Donor efforts to create viable product safety certification systems.

• Task 3: Support customs and border electronic data exchange, electronic payments.

Component 3: Trade Promotion

• Task 1: Identify products and services in the AC countries that can support the growth of viable value chains within the region and connect them to global supply chains.

• Task 2: Organize and support international trade forums, conferences, workshops, networking opportunities.

o Specific support for the Central Asian Trade Forum (CATF), Central Asian Business Opportunities Conference (CABOC) o Should focus on compatible products and services that support the global supply chains, extending them into the region.

Component 4: Business Competitiveness

• Task 1: Identify and improve domestic policies and systems necessary to increase business ability to profitably export and import finished and intermediate goods.

• Task 2: Improve capital investment and trade financing systems and products

Cross Cutting

• Private Sector engagement

• Gender equity

• Civil Society Organization coordination

Deliverables

The deliverables include laws, regulations, trade agreements, reports, conferences, exhibitions, workshops, training, value chain analyses and technical assistance, electronic data interface systems for business, customs and border agencies, business associations, databases, websites, market analysis, and required USAID reports for monitoring and evaluation, IEE, etc.

Revisions:

Pursuant to 22 CFR 216.3(a)(9), if new information becomes available which indicates that activities to be funded by the Project might be "major" and the Program’s effect "significant", this determination will be reviewed and revised by the originator of the project and submitted to the Asia Bureau Environmental Officer for approval and, if appropriate, an environmental assessment will be prepared. It is the responsibility of the A/COR to timely inform Mission Environmental Officer and Asia Bureau Environmental Officer of any changes in the scope and nature of the approved activities, which may warrant the revision of the approved Threshold Decisions.