Initial Environmental Examination and Request for Categorical Exclusion - Amendment # 3

INITIAL ENVIRONMENTAL EXAMINATION AND REQUEST FOR CATEGORICAL EXCLUSION - AMENDMENT # 3

INITIAL ENVIRONMENTAL EXAMINATION FACESHEET

Activity/Project Title: S-TIME (System Transformation for Income, Market and Employment)
Program Area EG 3:Agriculture
Program Area EG 11:Climate Change-Adaptation / Solicitation #:[As assigned by contracting office]
Contract/Award Number (if known): TBD
Geographic Location : Rwanda / East Africa
Originating Bureau: Africa Bureau
Supplemental IEE:☐Yes☒No
Amendment:☒Yes ☐No
Programmatic IEE:☐Yes☒No / DCN and date of Original document: Approved 8 August, 2014

DCN and ECD link(s) of Amendment(s): Amendment 1:
Amendment 2:

Amendment No.3
Funding Amount: $ 169,800,000 / Life of Project Amount: 5 years
Implementation Start/End: FY 2014 to FY 2021
Prepared by:Clementine Mukeka and Jean Damascene Nyamwasa,
IEE Submitted by: Jean Damascene Nyamwasa, Mission Environment Officer USAID/Rwanda / Date Submitted: June 16th 2017
Expiration Date: September 30th,2021 / Reporting due dates (if any):
Environmental Media and/or Human Health Potentially Impacted (check all that apply):
None ☒ Air ☐ Water ☐ Land ☐ Biodiversity ☐ Human Health ☐ Other☐
Recommended Threshold Determination
(check all that apply):
☒Negative Determination
☒with conditions
☒Categorical Exclusion / ☐Positive Determination
☒Deferral
☐Exemption
☐USG Domestic NEPA action
Additional Elements
☐Conditions ☐EMMP ☐WQAP ☐Pesticides ☐Deferred ☐ Other: ESF/ERR ☐ DCA
Climate Change:
GCC/Adaption GCC/Mitigation Climate Change Vulnerability Analysis (included)
Adaptation/Mitigation Measures:
All climate change risks identified are determined as Moderate therefore needs adaption and mitigation measures by S-TIME PAD.
Main Climate Change Risks / Adaptation Measures
Increasing rainfall intensity leading to higher frequency of floods and storms resulting in landslides, crop losses, health risks, damage to infrastructures and population displacement / Integrated watershed management to reduce the risk of floods and landslides (upstream) and Marshland development (downstream).
Prolonged droughts resulting in crop production decrease, livestock losses , food insecurity and population displacement / Irrigation infrastructures give farmers more control over water resource and reduce the vulnerability to changing rainfall patterns.
Introduction of crop varieties with higher yield potential, tolerance to climate change such as drought, heat and pest.
Increase in temperature resulting in proliferation in crop and livestock diseases , increased stress on crops, causing production decrease and food insecurity / Introduction of crop resistant varieties, training farmers on integrated pest management (IPM)
Mitigation Measures
Increased GHG (Green House Gas) due to increased use of external inputs (notably mineral fertilizers) as a consequence of increased number of farmers adopting agriculture high inputs technologies and practices to improve agriculture productivity / Promote the Integrated soil fertility management: (ISFM) for better soil nutrient management using an optimal combination of organic and inorganic fertilizers.
ISFM employs also agroecology, resource recovery and reuse, and fertilizer enriched composts.
Other Relevant Environmental Compliance Documentation: IEE for Monitoring and Evaluation Program (MEP), and (2) Monitoring, Evaluation, Learning, and Adaptive Management Program (MELAMP)

SUMMARY OF FINDINGS:

The purpose of this amendment# 3 to the USAID/Rwanda_FTF_IEE_2014_2018 under the new name S-TIME (System Transformation for Income, Market and Employment) is threefold:

-To approve the climate change risk assessment in accordance with the Executive Order 13677;

-To extend the LOP (life of the project) from initial 2014-2018 up to 2021;

-To provide in accordance with 22CFR216, the first review of the reasonably foreseeable effects on the environment of three new planned activities (a) the new Trade Activity-Trade Infrastructure Project 2 (b) the new Seed Activity and (c) the new Power Africa Activity.”

(1) In accordance with the Executive Order 13677, requiring all USAID projects and activities approved after October 1, 2016 to be assessed for climate risks, a climate change risk screening was conducted for the S-TIME PAD and mitigation measures were identified for the Project sub intermediate results (sub-IRs), see Climate Change Screening Matrix in annex. It is expected that some districts of the ZOI (Zone of Influence) will face increased rainfall intensity leading to higher frequency of floods and storms resulting in landslides, crop losses, health risks, damage to infrastructures and population displacement. Others will face prolonged droughts resulting in crop production decrease, livestock losses, and food insecurity and population displacement as well. In general the country is experiencing increase in temperature resulting in proliferation in crop and livestock diseases, increased stress on crops, causing production decrease and food insecurity.

The climate risk screening also proposes mitigation measures for the identified risks. Concerning increased rainfall and floods, the Project will promote integrated watershed management to reduce the risk of floods and landslides (upstream) as well as marshland development (downstream). Against the risk of drought, the Project will support construction of irrigation infrastructures in order to give farmers more control over water resources and reduce their vulnerability to changing rainfall patterns. In addition, the Project will introduce crop varieties with higher yield potential, tolerance to drought, heat and pest. The Project will further increase farmers’ resilience to climate change through trainings in new technologies including IPM (Integrated Pest Management) and adoption of climate and environment SMART technologies.

(2) The LOP (life of the project) is extended from initial 2014-2018 up to 2021 to allow S-Time to be in line with the USAID /Rwanda Feed the Future Multi-Year Strategy (2011-2015) and directly supports the Mission’s Country Development Cooperation Strategy (2015-2019).

(3) To provide in accordance with 22CFR216, the first review of the reasonably foreseeable effects on the environment of three new planned activities (a) The New Trade Activity-Trade Infrastructure Project 2 (b) A new Seed Activity and (c) a new Power Africa Activity” to be included in the USAID/Rwanda Economic Growth office, Development Objective 1 “Economic Opportunity increased” / the Feed the Future Project Approval Document as revised under the new name S-TIME PAD approved on May 25th 2017.

Activities covered by the original IEE and its amendment are listed in the Table 1 below. Any modification of activities or amendment to the PAD to include a new activity will require an amendment of this IEE.

Except as modified by this Amendment, the facts and conclusions set out in the original IEE remain valid and in effect.

Recommended Determinations:

The following table summarizes the recommended determinations for activities under the Feed the Future PAD IEE / currently S-TIME PADand its amendments.

Activities under S-TIME PAD covered by the Feed the Future PAD / S-TIME PAD-IEE and its amendments.

Activity / Categorical Exclusion(s) / Negative Determination(s) / Positive Determination(s) / Deferral
Activities Covered by amendment # 3
Trade Infrastructure Project 2 / 
New Seed Activity / 
Power Africa Activity / 
Activities Covered by amendment # 2 approved 8.24.2015
Feed the Future Rwanda Sustainable Food, Agriculture and Nutrition
Currently called (Hinga Weze) /  / (w/ conditions)
Feed the Future Rwanda Farm to Market: Technology, Inclusion, Microfinance and Engagement (FARMTIME)
Currently called Nguriza Nshore /  / (w/ conditions)
Activities Covered by Original FTF IEE approved 8.11.2014
Rwanda Dairy Competitiveness Project (RDCP II. /  / (w/ conditions)
Integrated Improved Livelihoods Program (IILP) /  / (w/ conditions)
Privatization of Rwanda’s Fertilizer Import and Distribution System (PReFER) /  / (w/ conditions
Rwanda Integrated Water Security Program (RIWSP) /  / (w/ conditions)
Rwanda Pyrethrum Project (PYRAMID II): /  / (w/ conditions
Trade Mark East Africa: /  / (w/ conditions
Development Credit Authority (DCA) agreements: / (w/ conditions
Africa Lead II / 
Private Sector Driven Agricultural Growth (PSD-AG) project: /  / (w/ conditions)
Access to Finance Rwanda (AFR): /  / (w/ conditions)
Program for Economic Progress and Productivity Enhancement in Rwanda (PEPPER): /  / (w/ conditions)
Rwanda Rural Feeder Roads Improvement Program (RFRIP) / 
Capacity Building for Evidence-based Policy Making / 
Biodiversity Activity: / 
Climate change adaptation activities: / 
FTF GDA activities.
Currently / 
Small Project Assistance Program with Peace Corps /  / 
(w/ conditions)
Harvest Plus Bio fortification /  / 
(w/ conditions)
Activities Covered by FTF IEE Amendment # 1 approved 7.15.2015
Biodiversity activity: Nyungwe Conservation Assistance (NCA) /  / 
(w/ conditions)

General Implementation & Monitoring Conditions

All conditions stipulated in IEE amendment #2 and #1 remain valid and in effect. The IEE amendment #3 determines categorical exclusion to the Trade Infrastructure Project 2 Activity, which means all intended activities, will not have a direct effect on the environment and do not require further environment review. In addition two activities (New Seed Activity and Power Africa) received a deferral determination, which means once the design process will be finalized, an IEE amendment will be conducted before they can be awarded and implemented.

APPROVAL OF ENVIRONMENTAL ACTION RECOMMENDED:

Amendment # 3 - IEE for USAID/Rwanda Feed the Future PAD under the new name S-TIME PAD (System Transformation for Income, Market and Employment)

CLEARANCE:

Acting Mission Director: ______Date: ______

Leslie Marbury

CONCURRENCE:

Bureau Environmental Officer: ______Date: ______

Brian Hirsch

Approved: ______

Disapproved: ______

File No:______

ADDITIONAL CLEARANCES:

Acting Economic Growth Director: ______Date: ______

Fina Kayisanabo

Mission Environmental Officer: ______Date: ______

Jean Damascene Nyamwasa

Regional Environmental Officer: ______Date: ______

David Kinyua

Distribution List:

USAID/Rwanda Economic Growth Office

USAID/Rwanda Program Office

USAID/Rwanda Office of Acquisitions and Assistance

MEO, REA, BEO

INITIAL ENVIRONMENTAL EXAMINATION AND REQUEST FOR CATEGORICAL EXCLUSION - AMENDMENT # 3

PROGRAM/PROJECT DATA:

Program/Activity Number:Rwanda Feed the Future Project / new name S-TIME Project

(System Transformation for Income, Market and Employment)

Country/Region:Rwanda/East Africa

Program/Activity Title:Rwanda Feed the Future Project / new name S-TIME Project

1. BACKGROUND AND ACTIVITY/PROGRAM DESCRIPTION

1.1Purpose and Scope of IEE

The purpose of this amendment # 3 to the USAID/Rwanda_FTF_IEE_2014_2018 under the new name S-TIME (System Transformation for Income, Market and Employment) isthreefold:

-To approve the climate change risk assessment in accordance with the Executive Order 13677;

-To extent the LOP (life of the project) from initial 2014-2018 up to 2021;

- To provide in accordance with 22CFR216, the first review of the reasonably foreseeable effects on the environment of three new planned activities (a) a New Trade Activity-Trade Infrastructure Project 2 (b) a new Seed Activity and (c) a Power Africa Activity”.

Activities covered by the original IEE and its amendment are listed in the Table 1 above. Any modification of activities or amendment to the S-TIME PAD to include a new activity will require an amendment of this IEE.

1.2Background

S-TIME (System Transformation for Income, Market and Employment) builds from the previous Feed the Future (FTF) Project, which was approved in May 2013. It is founded on the USAID/Rwanda Feed the Future Multi-Year Strategy (2011-2015) and directly supports the Mission’s Country Development Cooperation Strategy (CDCS) 2015-2019. As implementation proceeded, it was clear that the FTF Project was not designed in a manner conducive to additional investments. Out of the 15 activities approved under the FTF PAD, only two are still active as of February 2017. The FTF PAD has already been amended seven times to accommodate new activities. The S-TIME project seeks to align with the Mission’s CDCS and the Agency’s newly updated ADS 201 in ways that the previous FTF project did not.

Under the current S-TIME Project four new activities were authorized, three of which are not covered by the existing FTF IEE and its amendments.

Based on the design process, this IEE amendment include one activity, “Trade Infrastructure Project 2“ while two others “the new Seed Sector Strengthening and the new Power Africa” are still under earlier stage of design.

The New Trade Activity “Trade Infrastructure Project 2” will support the S-TIME Project purpose of increasing and sustaining economic opportunities for the Rwandan people, and its associated Intermediate Result 1.2 “Enhanced Rwandan private sector competitiveness” as described in the USAID/Rwanda’s Country Development Strategy. This activity will be the primary contributor to Sub-Sub-Purpose 1.2.2, “Strengthened regional integration,” after the end of the Trade Infrastructure Program (TIP) in June 2017.

1.3 Trade Infrastructure Project 2 Activity Description

Addressing trade related costs is critical to unlocking Rwanda’s economic potential. This activity seeks to address market failures that continue increase the cost of trade in Rwanda and the region through two intervention pillars – reducing barriers to trade and improved business competitiveness for trade. Specifically, it will address constraints affecting trade costs for goods, related to access to standards certification, persistent non-tariff barriers (NTBs) to trade, inefficient trade process and systems and limited capacity to support the export sector. By reducing trade barriers and improving trade competitiveness, this activity will focus on
establishing an environment conducive to the emergence of firms that are
competitive in export and domestic markets, which is necessary for the S-TIME Project purpose
to be fulfilled.

1.4 New Seed Activity and Power Africa Activity Description

The two new activities, the new Seed Sector Strengthening and the new Power Africa, are still in the early stages of design and received a deferral determination. Once the design process is finalized, an IEE amendment will be conducted before they can be awarded and implemented.

2.0 COUNTRY AND ENVIRONMENTAL INFORMATION (BASELINE INFORMATION)

The baseline country and environmental information of the above described activity described in the original Rwanda_FTF_IEE_2014_2018.doc remain the same.

3.0 EVALUATION OF PROJECT/PROGRAM ISSUES WITH RESPECT TO ENVIRONMENTAL IMPACT POTENTIAL

TIP 2 does not have direct adverse environmental impacts, as they entail technical assistance, training, research, information sharing, planning, management, and outreach activities. However, in the course of implementing the activity, partners should take advantage of opportunities to address environmental issues.

Below is a summary of the impacts of activities likely to have negative impacts on environment implemented under the TIP 2 Activity.

4.0RECOMMENDED THRESHOLD DECISIONS & MITIGATION ACTIONS (INCLUDING MONITORING AND EVALUATION)

4.1 Recommended Threshold Decisions and Conditions

The table below summarizes the activities and recommended threshold determinations of the TIP 2 Activity.

Activities / Recommended Threshold Determination
Trade Infrastructure Project (TIP 2)
Technical assistance and capacity
building to central government, local
government institutions, communities
organizations and private sector
Linkages with private sector; market
research and information sharing
Support to the development of policies, standards, etc. / Categorical Exclusion, per 22 CFR 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.); (iii)analyses,
studies, academic or research workshops and meetings; (v) document and
information transfers; (xiv) studies, projects or programs intended to develop thecapability of recipient countries to engage in development planning, except to theextent designed to result in activities directly affecting the environment (such as
Construction of facilities, etc.)

5. RESTRICTIONS, IMPLEMENTATION AND MONITORING

All details concerning this section (General restrictions & General project implementation and monitoring requirements) remain as described in the original IEE (file name: Rwanda_FTF_IEE_2014_2018).

6. Climate Change Risk Screening

In accordance with the Executive Order 13677, requiring all USAID projects and activities approved after October 1, 2016 to be assessed for climate risks, a climate change risk screening was conducted for the S-TIME PAD and mitigation measures were identified for the Project sub intermediate results (sub-IRs) and integrated during the Project design ( see Climate Change Screening Matrix in annex).

1

CLIMATE RISKS, OPPORTUNITIES AND ACTIONS S-TIME (System Transformation for Income, Market and Employment)

1.1: Defined or Anticipated Project Elements* / 1.2: Time
frame / 1.3: Geography / 2: Climate Risks* / 3: Adaptive Capacity / 4: Risk Rating* / 5: Opportunities / 6.1: Risk Management Options / 6.2: How Risks Are Addressed* / 7: Next Steps for Activity Design* / 8: Accepted Risks*
DO: Increase and sustain economic opportunities
IR1:Increased productivity and nutrition outcomes of agriculture
Sub IR1.1: Improved access to and utilization of nutrition-sensitive production and processing technologies
Contributing projects
-PSDAG (Private Sector Driven Agricultural Growth
- BHEARD
- USDA Agricultural Statistics Activities
-Great Lakes Region Coffee Research Support Activities
- Hinga Weze (under procurement)
- Early Generation Seeds project (under design) / 2017-2019 / All 27 districts outside of Kigali / Increasing rainfall intensity leading to higher frequency of floods and storms resulting in landslides, crop losses, health risks, damage to infrastructures and population displacement
Exposed Area s: North and Western Provinces / - Existence of a relatively comprehensive and progressive legislative framework and established agencies to work cross sectorally to support natural resource management, notably the Rwanda Environment management Authority (REMA), the Rwanda Natural Resources Authority (RNRA), the Rwanda Meteorology Agency (RMA)[1]
-Adoption of the Rwanda’s Green Growth and Climate Resilience National Strategy for climate change and low carbon development (October 2011)
-In Rwanda there is a lack of coordinated and integrated data management related to water and climate, including weak technical capacity, lack of hardware and software for data analysis and limited data and information sharing policies[2]. / Moderate / Existence of some projects and NGOs using an Integrated Water Resource Management Approach (including agroforestry and terracing) with positive impact on preventing floods and landslides.
USAID can support/partner with them / Integrated watershed management to reduce the risk of floods and landslides (upstream)
Marshland development (downstream) / The Hinga Weze Project will have a strong component of soil conservation and land husbandry structures development like: radical terracing, agroforestry, and marshland development.