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EGYPT INITIAL ENVIRONMENTAL EXAMINATION

Amendment2

PROGRAM/ACTIVITY DATA

Program/Activity Number: (263- 0300)

Country/Region: Egypt

DO: A More Competitive and Inclusive Egyptian Economy through Growth in Selected Sectors/ Environment for Trade and Investment Improved

Program/Activity Title: Trade and Investment Promotion in Egypt (TIPE)

Project/Activity Implementation: Tluough September 2023

LOP Amount: _ _,,$'-"l-"'-5=8 ._,_l--'-40=·-=-oo"--'o=--------

Prepared By: Rasha Abdel-Hakim _ _____ Current Date: March 15, 2017

Amendment (YIN): Y If "yes", Filename & date oforiginal IEE/RCE I 0113/2014_; IEE-Final-Approved-ME14-l34 TIPE IEE and IEE/RCE 9/10/2015; IEE-Final-Approved­ME 15-64 TIPE IEE

ENVIRONMENTAL ACTION RECOMMENDED: (Place X where applicable)

Negative Detennination: ____ Negative Detem1ination with conditions: _ ____,_X--"----_ -- J

Positive Determination: Deferral:

Categorical Exclusion: _ _ X __

RA TI ON.ALE FOR NEW FUNDING AND ACTIVITIES COVERED BY THIS AMENDMENT:

This amended IEE reflects the increase in the authorization level of the TIPE project under Amendment 3 of the TIPE PAD. Amendment 3 of the TIPE PAD authorizes an additional $81.20 million, bringing the total authorized ceiling for TIPE from $76.94 million to $158 .14 million. New funding will cover:

Expanding the level offunding for Public Financial Management (PFM) activity in support of the Government of Egypt-IMF program designed to improve the Macroeconomic Foundation for Growth.

Increasing the level offunding for SME export capacity building and GOE capacity building components of the trade and investment activity to improve the investment climate as well as improve the ability of the private sector to take full advantage of new trade opportunities that open up as economic refonns that establish a more competitive exchange rate and structural reforms that reduce the cost of doing business, restore their competitive edge in the export market.

Allocating $44.82 mill ion for workforce development and for entrepreneurship and enterprise development, to complement Egypt's enhanced competitive position under.the reform program with improved firm productivity, in order to hasten enterprise fonnation, and stimulate growth and job creation.

SUMMARY OF FINDINGS AND RECOMMENDED THRESHOLD DECISION

The Trade and Investment Promotion in Egypt (TIPE) project is designed to increase the competitiveness of micro, small and medium enterprises (MSMEs) and entrepreneurs in selected sub-sectors and value chains, while also addressing the current skills mismatch and high youth unemployment. The main activities under the TIPE project will include:

(I) Support to MSME development and entrepreneurship to assist the Egyptian private sector, to grow by accessing business development services (BOS) and financial services that will enhance their competitiveness and result in increased employment, sales to domestic and export markets, and profits. It will help promote MSMEs through improving their integration within larger supply chains, helping them to launch and grow their business models as well as improving the trade policy environment to promote trade.

(2) Technical-Vocational Education and Training (TVET) and Workforce Development to improve the performance of technical education and training, with a focus on youth and women's employment in the manufacturing and food processing sub sectors.

(3) Support for improved Public Financial Management (PFM) by building the capacity of the Ministry of Finance (MOF) to control the fiscal deficit, reduce public debt, manage fiscal risk, and achieve program goals through more infom1ed resource allocation decisions. All these will contribute to moderating inflation and improving general macroeconomic environment

( 4) Support for the Ministry of Planning (MOP) to improve the planning, appraisal, prioritization, implementation, and monitoring of GOE capital expenditures, to improve the efficiency and effectiveness of public capital expenditures, and benefit MSMEs with better public business services. ·

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The original IEE dated October 13, 2014 accorded a categorical exclusion for five sub-activities relating to technical education, training, institutional capacity building, ease of doing business, advocacy, and public financial management (PFM) that do not directly affect the environment. With respect to sub-activities providing business development services and financial services to micro, small, and medium-sized enterprises (MSMEs), and extending practical training to technical school students and job seekers, a negative detennination with conditions was accorded. The amended IEE dated August 18, 2015 accorded categorical exclusion for the intervention related to capacity building of GOE authorities to improve trade policy environment and enhance implementation of policies that promote trade; and a -negative detennination with conditions for the sub-activity related to improving the energy efficiency of SM Es. The negative determination with conditions for the export related activities described in the original PAD remained applicable in the amended IEE dated August 18, 2015. The categorical exclusion for the PFM will still be applicable under this amendment. We recommend categorical exclusion for the sub-activity introduced in this amendment related to improving the planning, appraisal, prioritiza"tion, implementation, and monifoiing of GbE capital expenditures. - -

1. Background and Activity/Program Description

1.1 Purpose and Scope of IEE Amendment

In accordance with 22 CFR Part 216, the original IEE dated October 13, 2014, provided the first review of the reasonably foreseeable effects on the environment, as well as recommended threshold decisions, for the following activities: providing technical assistance and related services to develop capacity and provide training and small automation equipment in the areas of MSME development, entrepreneurship, technical education and vocational training, workforce development, PFM, and ease of doing business . This IEE amendment extends the analysis to cover the following changes: a) Authorizing an additional $81,200,000, b1inging the total authorized ceiling for TIPE from $76,936,871 to $158, 140,000; b) Extending the end date of the project for three years to end on September 30, 2023; c) Focusing the Public Financial Management (PFM) activity (Activity 3 in this memo) on improving PFM by building the capacity of the Ministry of Finance (MOF) to control the fiscal deficit, reduce public debt, manage fiscal risk, and achieve program goals through more informed resource allocation decisions; and d) Adding an activity related to supporting the Ministry of Planning (MOP) to improve the planning, appraisal, prioritization, implementation, and monitoring of GOE capital expenditures, to improve the efficiency and effectiveness of public capital expenditures (Activity 4 in this memo). All other terms and conditions remain the same.

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1.2 Background

The 2013/14 Global Competitiveness Report identifies several areas that are of crncial importance to improve Egypt's economy. First, the macroeconomic environment has deteriorated over recent years because of a widening fiscal deficit, rising public indebtedness, and persisting inflationary pressures. Second, measures to intensify domestic competition and promote the growth of MSMEs would result in efficiency gains and contribute to energizin_g the economy by providing access to new entrants. Third, making labor markets flexible and more efficient would allow the country to improve labor skills, reduce the current skills mismatch, and increase employment in the medium term. TIPE addresses each of the areas that have been consistently identified as critical constraints to economic growth and poverty alleviation in Egypt.

TIPE has been designed to support the development and growth of MSMEs and entrepreneurs th~~t;lgh improvi(lg fi~ancial and non-financiaJ services ~!l~_skjll~_ct~y~l_gpm~n!. ~t _will f9cl!~ on increasing the competitiveness of MSMEs and entrepreneurs in selected value chains. The project will select the sectors that have the highest potential for growth, export sales, employment generation, and innovation. The project will also aim at improving technical education systems, employment skills and workforce development to reduce the current skills mismatch and promote employment especially among the youth and women. Improving the ease of doing business and the regulatory envirorunent, including trade policy and thee-payment and electronic money regulations, is also an objective under TIPE, as it helps promote private sector competitiveness.

1.3 Description of Activities

TIPE will be supporting entrepreneurship and MSMEs development, and improving labor productivity though technical assistance, training, workshops, IT procurements, and grants to NGOs. Grants to NGOs will provide technical assistance, training and IT equipment.

Activity I: Micro, Small a11d Medium Enterprise (MSME) Developme11t a11d E11trepre11eurship Supported

The main focus of this activity is to assist the Egyptian private sector, in particular MSMEs and entrepreneurs, to grow by accessing BOS and financial services that will enhance their competitiveness and result in increased employment, sales, and profits. Priority will be given to strengthen and grow MSMEs in 3-5 selected sub-sectors/value chains, with emphasis on MSMEs that are female-owned, employ a majority of women, and/or have the potential to hire significant numbers of women and youth. The specific value chains will be selected based on pre-defined criteria, including growth and profitability potential, employment generation potential, strong backward and fonvard linkages between MSMEs and large firms, and women's empowerment. The focus will be on strengthening the value chains in order to create opportunities for improved integration of MSMEs and entrepreneurs.

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Principal activities are as follows:

• Activity I a. Providing BDS and financial services to existing MSMEs; • Activity I b. Providing technical and financial assistance to potential entrepreneurs and

start-ups through Start-up Cups competitions, incubators/accelerators, Angels or other fonns of finance; and

• Activity le. Supporting one-stop shops for business operations. • Activity Id. Providing capacity building.assistance to BDS and financial service

providers. • Activity le. Building capacities of SM Es to develop pricing, marketing and export

strategies • Activity If Improving the energy efficiency systems for SM Es • Activity 1 g. Providing technical assistance to build the capacity of GOE authorities to

improve trade policy environment and enhance implementation of policies that promote trade.

Activity 2: Tech11ica/ Education & Vocational Training and Workforce Develop111e11t Improved

The priority focus in this area will be working directly with the private sector to improve the perfo1mance of technical education and training, with a focus on youth and women' s employment in the manufacturing and food processing sectors. Activities will be implemented using the following approaches: a) partnership between businesses and technical schools; b) promotion of innovation and workforce development; and c) curricula improvements. Work with the private sector industries will be focused on the implementation of plans for "training for employment" by offering vocational technical training to young graduates. This will provide them with skills needed for decent employment, and expand the opportunity to connect with the private sector as well as providing assistance to the private sector in hiring and training practices. In addition, this activity will support rolling-out the successful model of the school based training and employroent units to different govemorates. The role of these units is to promote coordination between the schools and the private sector to better match the skill requirements of employers and the training programs of schools. Areas of consideration will be teacher training, curriculum development, career guidance to students, and student training for enhanced employability. TIPE will also provide technical assistance to the GOE in the areas of public financial management, competitiveness, and the ease of doing business activities.

Principal activities are as follows:

• Activity 2a. Technical assistance and training to technical schools an~ central units at the Ministry of Education. The training under this sub-activity involves classroom training to teachers and students;

• Activity 2b. Practical training to technical school students, job seekers, and existing workers; this training is hands-on training that involves working in a workshop or production line and may require safety and waste disposal measures;

• Activity 2c. Technical and soft skills training to job seekers; and

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Activity 3: Ejfectiveuess of Public Fi11a11cial Ma11age111e1tt Improved

This activity will provide technical assistance and capacity building to the Ministry of Finance to: a) establish a Treasury Single Account in order to improve cash management and reduce the stock of government overdraft; b) build capacity for revenue forecasting to improve mobilization of domestic resources; c) build capacity to manage fiscal risk in order to minimize exposure to contingent liabilities; and d) h·ansition the GOE's budgeting framework from sector-based to program-base-0 budgeting approach in order to tie resource allocation decisions directly to program results. All these interventions will help the GOE narrow the fiscal deficit, drawdown on public debt, pay for net imports, build its international reserves, and moderate inflation. And under improved macroeconomic foundation, enterprises will be incentivized to fonn faster and to invest in order to grow from micro to small and from small to dynamic medium-sized finns, adding value and creating jobs in the economy.

Principal activities are. as foliows:

• Activity 3a. Providing technical assistance and training to assist the MOF in fully implementing a Treasury Single Account at the Central Bank, through which the GOE would record receipts and payments to produce a consolidated view of its cash position at the end of each day;

• Activity 3b. Providing technical assistance and training to assist the MOF in adopting Program Budgeting to improve the efficiency of the budgeting process, and ensure that investments are targeted to program results and linked to tile GOE Sustainable Development Strategy 2030;

• Activity 3c. Providing technical assistance and training to assist the MOF in improving revenue forecasting that would enable policymakers to design and implement more efficient and fairer tax policy and be able to measure the potential impact of alternative tax policies on the economy; and

• Activity 3d. Providing technical assistance and capacity building to assist the MOF in managing and monitoring potentially significant fiscal risk exposures from contingent liabilities related to the debts of certain state owned enterprises (SO Es) and economic authorities that the GOE has to guarantee.

Activity 4: Public lllvestme11t Pla1111i11g, lmple111e11tatio11, a11d Mo11itori11g Improved

This activity will provide technical assistance and capacity building to the Ministry of Planning to strengthen public capital investment planning, appraisal, prioritization, implementation, and monitoring in order to improve the efficiency and effoctiveness of the GOE capital investment projects. These investments will not only serve individual Egyptians, but will also provide better public business services to MSMEs to improve their operational efficiency and ultimate profitability.

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Principal activities are as follows:

• Activity 4a. Strengthening the capital investment appraisal and decision support systems across all GOE entities by creating standardized cost and benefit estimate modules for capital projects; and

• Activity 4b. Assisting the Ministry of Planning in the implementation of a govemment­wide capital investment appraisal, monitoring and evaluation system to improve the efficiency and effectiveness of the GOE capital investment projects

None of the activities under TIPE constitutes government-to-government ("G2G") activities. Technical assistance to the GOE will be provided through an implementing partner.

2. Evaluation of Environmental lmpact Potential

Categorical Exclusio11

The Mission Environmental Officer (MEO) recommends that a categorical exclusion from further environmental reviews be accorded for those components of the three activities related to technical education, training, institutional capacity building, ease of doing business, advocacy, public investment planning, and PFM that do not directly affect the environment. The relevant bases for this categorical exclusion are set forth in 22 CFR 216.2(c)(2)(i), (xiii) and (xiv):

(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.);

(xiii) Matching general support and institutional support grants provided to private voluntary organizations (PYOs) to assist in financing programs where A.l.D. 's objective in providing such financing does not require knowledge of or control over the details of the specific activities conducted by the PYO; [and)

(xiv) Studies, projects or programs intended 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 construction of facilities, etc.).

TIPE activities subject to this Categorical Exclusion will provide technical assistance and training programs to:

(a) Technical schools and Central Units at" the Ministry o_f Education (in the form of curriculum development, capacity building, and classroom training);

(b) Private sector finns; (c) One-stop shops for business registration and licenses; (d) Providing capacity building assistance to BOS and financial service providers;

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(e) Building capacities of SM Es to develop pricing, marketing and export strategies (f) Building the capacity of GOE authorities to improve trade policy environment and

enhance implementation of policies that promote trade (g) Public policy NGOs, think tanks, or international organizations to support GOE entities to

develop analytical capacity to advocate for policies, regulatory and labor market refonns; and

(h) Assistance to the GOE in public investment planning, public financial management, regulatory and labor market refonns.

Negative Delermi11atio11 with Co11ditio11s

Activities related to providing business development services and financial services to MSMEs, to promote their growth and innovation potential and link them to supply chains as well as practical training provided to technical school students and job seekers, will be accorded a Negative Oetennina_!i~n \~ith <;ond_i_tions. 1

In accordance with 22 CFR 216.3 (a)(2)(iii), "The cognizant Bureau or Office will record a Negative Detennination if the proposed action will not have a significant effect on the environment."

The following activities are assigned a Negative Determination with Conditions:

(a) Providing BOS and financial services to MSMEs and Entrepreneurs: Because some MSMEs in certain industries (i.e. chemicals, food processing, textiles) may be engaged in business activities that could affect the environment, especially with regards to disposal of waste, the conditions for providing BDS and financial services to MSMEs will be the incorporation of "good environmental practices" in the BOS services provided to all MSMEs. For potential entrepreneurs, one of the criteria for evaluating ideas presented to Start-up Cups or Competitions will be "the need for the business idea to address environmental considerations". The condition for the practical training activity is to ensure that the modules of the training programs include a "Safety Measures and Proper Disposal Practices" component.

Technical assistance to MSMEs must address and strengthen , as appropriate, awareness of the environmental hazards presented by the subject enterprise, appropriate environmental management measures, host country environmental occupational and health requirements that pertain to the enterprises and appropriate resource-efficient and cleaner production solutions.

(b) Practical hands-on training of technical schools students, workers, and job seekers provided at a workshop or on a production line: Some of the hand-on courses (such as carpentry) may,involve students using tools or machinery to improve their skills in these areas. In these cases, students may be exposed to occupational hazards or other workplace vulnerabilities. In such cases, the implementing partner will need to include training on workplace safety practices and awareness of environmental hazards.

1 An IEE for the financial support to MSMEs component or the Middle East and North Africa Investment Initiative (MENAll) was approved by DAA/ME on 4111/2014. -

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If waste products are produced, then proper labeling and disposal must also be practiced and included in the training.

(c) Improving the energy efficiency systems for SMEs: Technical assistance to MSMEs in the area of energy efliciency must address and strengthen, as appropriate, awareness of the environmental hazards involved, appropriate environmental management measures, host country environmental and health requirements related to new measures for energy efficiency-and appropriate resource-efficient production solutions.

MandatOJy references: The USAID Sector Environmental Guidelines for Micro and Small Enterprises ( h11p: .. 'w ww .usaidgcms.urg-scctorGuidl'l incs.htm ); US AID Environmental Guidelines for Small Scale Activities in Africa (\\'\\'\\' .cm:ap;J fri<.:a.org .:g~saa.hlm ), specifically Section Ill on Micro and Small Enterprises, (http:;, \\,,-,\ . .:ncarafrica.\1rg cgssaa.h im=' l 11. See also the GEMS training curriculum: Cleaner Production for Micro, Small and Medium Enterprises (hllp: '\\"\\ \\ .usaidgcms.org sme.htm).

Our evaluation of the potential environmental impact of these acti vi ties--and recommendations for addressing them--are summarized in the attached matrix.

3. Mitigation, Monitoring and Evaluation

The implementing partner will complete the Environmental Documentation Form (EDF) and the Environmental Monitoring and Mitigation Plan (EMMP), and submit it to the AOR/COR for approval. The EMMP will be attached to the implementing partner's work plan and the PMP. Activities which will have a significant impact on the environment or which are eligible for an Environmental Assessment will not be implemented without first amending the IEE to cover such activities.

4. Revisions

As with all USAID-funded projects, and pursuant to 22 CFR 216.3(a)(9), if new infomlation becomes available which indicates that any of the proposed actions to be funded by this activity might be "major" and their effects "significant", the threshold decision for the actions listed above will be reviewed and revised by the originator(s) of the program and projects and submitted through the MEO to the Bureau Environmental Officers, ME, for approval and, if warranted, an environmental assessment will be prepared by the Mission as appropriate. It is the responsibility of the AOR/COR to keep the Mission Environmental Officer and the BEO infonned of any new infonnation or changes in the activity that mighty require revision of the IEE. If the bilateral agreement duration extends without any changes in the Scope of Work, the IEE will extend automatically.

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APPROVAL OF ENVIRONMENTAL ACTION RECOMMENDED:

CLEARANCE:

D/Mission Director_:

CONCURRENCE: l;>.._ 1J... '(o•'"o

Bureau Environmental Officer: (, L 0 tJ ~t,-.. Date: 7 /i-/ f / -+<--~~~~~~~~-

John Wilson

ADDITIONAL CLEARANCES: / / . -

( \ b / .

Program and Mission Environmental Officer: '. ),,.f"«t;r ·& c.-ol Date: 9

Soad Saada

Technical OD:

Resident Legal Officer:

Regional Environmental Advisor:

Activity

I a. Provision of business development services (BOS) to MSMEs --~~~~~~~--l

I b. Provision of technical and financial assistance' to entrepreneurs

1 c. Capacity building. technical assistance, and small automation equipment to one stop shops

Id. Providing capacity building assistance to BOS and financial service providers

IEE Matrix for Amendment to Trade and Investment Promotion in E~pt (TIPE) PAD

Description

Activities 1 a and I b will entail providing technical and financial assistance to the Egyptian private sector to help firms grow by accessing BOS and financial services to enhance their competitiveness and increase employment, sales, and profits. Because some MSMEs in certain industries (i.e. chemicals, food processing, textiles) may be engaged in activities £hat could have a significant effect on the environment, especially with regard to disposal of wastes, the Mission recommends that upon the selection of the finns within each value chain the contractor review the environmental impacts of the proposed activity with a strong description of the surrounding environment and propose the necessary mitigation measures. These measures will have to include, among other things: (a) incorporating "'good environmental practices" in the BOS services provided to all MSMEs and (b) including "the need for the business idea to address environmental considerations" as one of the criteria for evaluation ideas presented to Start-up Cups or Competitions for entrepreneurs.

This activity will provide capacity-building and training for the employees of the one-stop shops on the new automated workflow. Small automation equipment, such as computers, scanners. and photocopiers, will be also provided to the one-stop shops. This activity will have no significant direct effect on the natural or physical environment.

The activity will provide institutional strengthening services to BDS and financial services providers. This activity will not involve

working directly with the MSMEs.

Recommendation

Negative Determination with Conditions 22 CFR 2 I 6.3(a)(2)(iii) (The cognizant Bureau or Office will record a Negative Determination ifjthe proposed action w,ill not have a significant effect on the environment)

Categorical Exclusion under22 CFR 216.2(c)(2)(i) (educational, technical assistance or training)

Categorical Exclusion urider 22 CFR 216.2(c)(2)(i) (educational, technical assistance or training)

Illustrative Bud~et

$28 million

$4 million

$10.0 million

IEE Matrix for Amendment to Trade and Investment Promotion in E2vPt <TIPE) PAD

Activity Description Recommendation Illustrative

Bud2ct 1 e. Building This activity will provide assistance to SMEs to develop their capacities of SM Es exporting capacities, with emphasis on female owned businesses, to Categorical Exclusion to develop pricing. meet international demand whether through direct exports or through under 22 CFR marketing and linkages with multinational companies operating in Egypt.

21·6.2(c)(2)(i) $29 million export strategies (educational, technical

assistance or training)

l .f Improving the This activity will involve providing technical assistance to SMEs to energy efficiency improve their energy efficiency systems. Negative Determination systems for SMEs with Conditions 22 CFR $2.0 million

21.6.3(a)(2)(iii)

1 g. Improving the This activity will provide assistance to the GOE to improve the External Trade external trade policy framework through more streamlined trade Policy Framework procedures. improving the export/import regulations, developing Categorical Exclusion

'under 22 CFR capacities of GOE agencies and relevant stakeholders in trade

2 l,6.2(c)(2)(i) $4.0 million promotion, and developing a unified risk management system to (educational, technical reduce the time of clearance. assistance or training)

2a. Technical This activity will support technical schools and central units at the assistance and Ministry of Education and provide technical assistance in curriculum training to technical development and training for the school based training and Categorical Exclusion schools and central employment units as well as the central units. The training under this

un:der 22 CFR units 2! '6.2(c)(2)(i) $20.0 million

sub-activity involves classroom training. These activities will have no (educational, technical significant direct effect on the natural or physical environment. assistance or training)

2b. Practical training As the training will be provided to technical school students and Negative Determination of technical schools teachers, graduates searching for employment, and current workers at with Conditions pursuant $10.0 million students. iob seekers, to 22 CFR 2 l 6.3(a)(2)(iii)

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IEE Matrix for Amendment to Trade and Investment Promotion in E!ZYDt (TIPE) PAD

Activity Description Recommendation Illustrative

Bud!!et and workers workshops or the production line. it may entail the need to deal with

hazardous tools and dispose of wastes, especially in industries such as ready-made garments and food processing. Implementing partners working under this component will have to ensure inclusion of a "Safety Measures and Pr9per Disposal Practices" module and work with the schools/training ·centers to teach both teachers/trainers and students how to dispose of waste properly and work with the tools safely; develop proper signage inside the workshops/firms; and identify appropriate disposal areas. Conditions for specific on-the job training will be set according to the USAID Sector Environmental Guidelines ( www.usaidgcms.org/scctorG uidcli ncs.ht m ).

2c. Technical and This activity will provide0 technical and soft skills classroom training soft skills training to to job seekers to improve their employability skills and link them to

Categorical Exclusion

job seekers under22 CFR the market. This activity ·will have no significant direct effect on the 2 l 6.2(c)(2)(i) $10.0 million natural or physical environment. (educational. technical

assistance or training)

3. Capacity building This activity will include 'interventions to build the capacity of public $35.0 million and technical policy NGOs. think tanks, or international organizations to support assistance to the GOE entities to develop analytical capacity in order to advocate for

Categorical Exclusion GOE in the PFM. policies and regulatory reforms. The activity will also provide

under 22 CFR regulatory and labor technical assistance to the GOE in lhe PFM. regulatory and labor 216.2(c)(2)(xiii)

market refonns market reform areas. This activity will also provide assistance to the (institutional support to

Ministry of Finance to: a), establish a Treasury Single Account in order PVOs) and 22 CFR

to improve cash management and reduce the stock of government 216.2(c)(2)(xiv) (capacity

overdraft: b) build capacity for revenue forecasting to improve building for development

mobilization of domestic resources: c) build capacity to manage fiscal planning)

risk in order to minimize exposure lo contingent liabilities; and d) transition the GOE's budgeting framework from sector-based lo program-based budgetiniraooroach in order to tie resource allocation

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IEE Matrix for Amendment to Trade and lnvestment Promotion in ES?:yot <TIPE) PAD

Activity Description Recommendation lllustrative

Bud2et decisions directly to program results.

These activities will have no significant direct effect on the natural or ohvsical environment.

4. Technical This activity will provide :technical assistance and capacity building to $6.0 million assistance and the Ministry of Planning to strengthen public capital investment Categorical Exclusion capacity building to planning, appraisal. prioritization, implementation. and monitoring in under22 CFR the MOP to order to improve the efficiency and effectiveness of the GOE capital 2 I 6.2(c)(2)(xiii) strengthen public investment projects. (institutional support to capital investment PY Os) and 22 CFR planning. appraisal. 2 l 6.2(c)(2)(xiv) (capacity prioritization. building for development implementation, and planning) monitorin~

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Attachment 1 Environmental Documentation Form

INSERT PROJECT NAME A A . f 1ppllcant m ormation

Contractor/gr Parent grant or antee( organiz project ation)

. ·-individual Address, phone contact and and email (if title available)

activity (brief Amount description)

. .. . ·- - ~ -- - ...... . . -- . .

Location of Start and end activity date of activity

B Activities, screenma results, and recommended determination TABLE 1 Screening result

Proposed Sub-activities

1.

2.

3.

4.

6 .

8 .

9.

(continue on additional page if necessary)

(Step 3 of instructions)

2

_Recomi'ile!lded Determinations

.(Step.6 of instru_ctions. Complete for all moderate and

· high-risk activities) .

-C · !'3 ci>

i;:: l!!o ·- Q) ca ,_·C :> '0.

. o· ,Q>':o E . :Z.11> ro ·-

I~ ~ - ~ ~0 ('Q to= c:- Cl> ('Q

.21 'c rn > a ·:: o 0> f?J: ...... . 1' E a ·E· c '<ii ~!- c: <(. ·-

C. Summary of recommended determinations (check all that apply)

The activity contains. . . I (equivalent regulation 216 terminology)

D Very low risk sub-activities

D After environmental review, sub-activities determined to have no significant adverse impacts

D After environmental review, sub-activities determined to have no significant adverse impacts, given appropriate mitigation and monitoring

D After environmental review, sub-activities determined to have significant adverse impacts

o. Certification: · I, the undersigned, certify that:

I categorical exclusion( s)

I negative determination(s)

I

negative determination(s) with conditions

positive determination(s)

1. The information on this form is correct and complete

2. • These design elements and best practices will be followed in implementing this activity,

except with the approval of USAID.

• Any specific mitigation or monitoring measures described in the attached information will be implemented in their entirety.

• Compliance with these conditions will be regularly confirmed and documented by on-site inspections during the activity and at its completion.

(Signature)

BELOW THIS LINE FOR USAID USE ONLY Approval

USAID Project Officer 0 Approved 0 Rejected

USAID MEO or DMEO 0 Approved D Rejected

(print name)

(print name)

(Date)

(signature)

(signature)

USAID comments: (if documentation is rejected, comments must be provided to applicant)

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