The World Bank
Agriculture Modernization Project (P158372)
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may arise. Most of specified risks and impacts are expected to be typical for small-scale construction/rehabilitation works,
agriculture production and fruit processing activities, temporary by nature and site specific, and can be mitigated by
applying good construction practices and relevant mitigation measures.
84.
Social risks and impacts related to the physical footprint of the project are predictable and manageable via
measures included in ESMF and the Resettlement Policy Framework (RPF). No significant risks related to labor influx,
gender-based violence (GBV) or community health and safety are expected under the project, as most project workers
will be recruited locally. The GBV risk is assessed as Moderate mostly due to the status of national GBV legislation, gender
norms, and the rural location of most project activities. Yet, there are a number of contextual social risks in the agriculture
sector, due to which the overall Social risk of the project is assessed as Substantial. These relate to the transparency and
equity of land allocation and land tenure security, information constraints and overall ability of smaller farmers to partake
in benefits of the project, risks of reduced access to land and productive assets due to land reallocation, and the capacity
of state institutions and financing institutions to monitor labor and working conditions across rural enterprises.
Environmental and social procedures that are put in place under the project consider these contextual risks, manage and
monitor them as they relate to project-supported activities, and provide adequate attention to capacity-building activities
of the involved implementing institutions. Mitigation related to the above have been included in the project ESMF – with
site-specific Environmental and Social Impact Assessment (ESIA)/Environmental and Social Management Plans (ESMPs)
to be developed during implementation; project Labor Management Procedure (LMP), and Stakeholder Engagement Plan
(SEP). Risks of exclusion will be mitigated by the project’s investments in: (i) strengthening agricultural research programs,
which will generate technologies and farm management solutions suitable for small and larger farms; (ii) establishing an
agricultural extension service, which will extend this knowledge and research results to all types of farms for adoption;
and (iii) promoting the cooperation of small farmers – with dedicated project funds and activities towards their capacity-
building – to ensure that they can also partake in benefits from the development of export value chains and access finance
under the project. Application criteria for project credit will be developed so as to encourage selection of smaller farmers
and agri-businesses with formal contracts with farmers and farm cooperatives to apply.
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