Preliminary Global Terms of Reference for the Umbrella and Individual SDI Strategic

Preliminary Global Terms of Reference for the Umbrella and Individual SDI Strategic Environmental and Social Assessments for the Spatial Development Planning Technical Assistance Project

August 31, 2010

1.Background

The Government of Mozambique has set as a priority to improve the quality and scope of its management processes and strengthen its development planning capability. Aligned with this overarching priority, the GoM has been actively pursuing a series of measures and reforms, such as, improving macroeconomic management, tightening the fiscal regime for large investment projects[1], introducing the Extractive Industries Transparency Initiative (EITI) in the mining sector, revising the Public-Private Partnership law, and introducing a national budget management system (e-Sistafe).

In a key recent addition to those efforts, the GoMis undertaking various complementary studies in support of spatial development planning, such as studies on “Growth Poles” and “Development Corridors”. Within that context, the Ministry of Transport and Telecommunications (MTC) has set-up the “Coordination Commission for Studies and Projects” (COCEP)[2]to establish a sustainable institutional capacity on spatial development planning within government and to elaborate a series of concrete proposals for Spatial Development Initiatives.

The Spatial Development Initiative (SDI) methodology seeks to unleash in a sustainable manner the economic potential of a given geographic area or zone (commonly referred as “Development Corridor”). The underlying driver of the SDI methodology is the coordinated and synergic development of investment projects, based on the unrealised economic potential of a “development corridor”, in conjunction with the necessary infrastructure investment projects. In general SDIs tend to have an “anchor” project (or group of anchors) that underpin the viability (usage) of the necessary infrastructure projects.

The anchor project(s) provide the infrastructure projects (transport, power, water) with the required revenue streams to attract private sector capital and skills to be deployed through PPPs. The infrastructure investments can be considerable and accordingly the anchors tend to be resource-based projects that embody large differential rents in order to service the large capital investments required. The potential (unrealised) agricultural projects seldom embody high differential rent and consequently the anchors are generally mineral-based projects (solid minerals and hydrocarbons).

The developmental potential of such large projects is further enhanced through the “deepening” (project linkages) and “densification” (provision of feeder infrastructure) of the SDI. Before a SDI is implemented in a selected area, a thorough and comprehensive concept study has to be undertaken in order to identify and assess at pre-feasibility level the economic potential (usually high-rent resources) and whether they can support (service) the provision of the requisite infrastructure.It is also necessary to undertake a tandem detailed Strategic Environmental and Social Assessment (SESA) to incorporate key environment and social considerationsin the development of the SDI.

The development objective of a SDIis to improve national social and economic development planning through the introduction, institutionalization and mainstreaming of multi-sector spatialdevelopment planning methodologies and practices, as a means to:

• promote trade and investment led economic growth;
• optimise the utilisation of infrastructure;
• encourage value-added processing (beneficiation);
• protect the environment; and
• enhance the competitiveness of the Mozambican economy

2.Objectives

The main objective of the SESA isto incorporatepriority environmental and social considerations in the preparation and implementation of the Mozambique Spatial Development Planning Technical Assistance project to identify environmental investment opportunities and promote environmentally sustainable and socially responsible development through spatial development initiatives (SDIs).

3.Approach

SESA will apply institution- and impact-centered SEA approaches at two levels.

• At the national level(umbrella SESA)through the instrument of the Inter-Ministerial Co-ordination Committee (IMCC), the MTC will facilitate the co-ordination of relevant line ministries to ensure that social and environmental considerations are incorporated into spatial development planning. Thus, an institutional approach will be applied for this strategic assessment umbrella of spatial planning in Mozambique.
• At the SDI level(SDI SESA), and under the same inter-ministerial framework, it willfocus on incorporating environmental and social considerations and identifying environmental investment opportunities in the preparation of the six SDIs that the project will support.The strategic assessments for the SDIs will combine institutional and impact-centered approaches as described in Task 4 of these ToRs.

The SESA process will be conducted in a participatory manner involving the main stakeholders in environmental and social management in spatial planning and the SDIs supported by the project.

4.Scope and Tasks of the Umbrella and SDIs SESAs

Initially, SESA will begin with the umbrella SESA that will identify the key institutional, legal and regulatory adjustments for incorporating environmental and social considerations in spatial planning in Mozambique. Given this context, within the umbrella SESA detailed ToRs for each SDIs will be developed. Implementation of the ToRs for each of the SDIs will complete SESA. In line with this sequencing, the main tasks of SESA are described below.

Task 1: Situation and Stakeholder Analysis

Describe and discuss how environmental and social considerations are incorporated in spatial planning in Mozambique. This analysis will consider, but not be limited to, the Mozambique legal and regulatory environmental and social assessment framework of projects and spatial plans,land use patterns, management of environmental sensitive areas such as national parks, wildlife sanctuaries, environmental hot spots, involuntary resettlement, slums, poverty prevailing areas and rural-urban migratory flows.The situation analysis will be undertaken through literature review, one-on-one interviews and expert judgment.The literature review should consider lessons from all other SESAs in Mozambique, especially those financed by the Millennium Challenge Account (MCA) and relevant SESA’s in Southern Africa.

Issues to be considered in the analysis will comprise,but not be limited to,the following:

1. use of planning tools such as GIS for environmental and social analysis in spatial planning,
2. relationship between customary planning processes in villages and districts and formal spatial planning led by government at the regional and national level.
3. role and mandate of the key institutional stakeholders and development agencies
4. intra and inter-institutional planning coordinating mechanisms,
5. ability to adapt spatial planning processes to changing priorities, and
6. monitoring and enforcement capacity.

The situation analysis will also discuss the governance framework in which spatial planning processes take place.Key issues to be considered will be the transparency of planning processes, accountability of decision makers and existing mechanisms to resolve controversies i.e., access to the judiciary for environmental damages. For the analysis of governance in spatial planning, a stakeholder analysis will identify and discuss the main public, private and civil society players in spatial planning at the national level. This will include an assessment of national stakeholders influence and interest in the SDI planning approach.

The outcome of the situation and stakeholder analysis will be a report and a public participation plan. The environmental and social analysis report will identify key legal, institutional and regulatory issues affecting environmental and social management in spatial planning in Mozambique. The public participation plan will summarize the main results of the stakeholders analysis and present a plan to engage all key stakeholders in the umbrella SESA and criteria or methodology for preparing public participation plans in the SDIs. The plan will discuss how power differentials among stakeholders will be managed to ensure that the voices of poor and vulnerable stakeholders are heard in the SESA process in a culturally sensitive manner.

Task 2: Selection of Priorities

Determine legal, institutional and regulatory priorities for environmental and social management in spatial planning in Mozambique with planners (national and local), and representatives of the private sector and the civil society. The SESA will focus on the most relevant overarching environmental and social considerations that should prevail in spatial development planning, in general, and in particular, across any SDI that would be embraced, identifying environmental investment opportunities in the preparation of the six SDIs. The selection of priorities will be informed by the results of the situation and stakeholders analysis following the public participation plan.

Task 3: Capacity and Political Economy Assessment

SESA will assess capacity gaps and political economy constraints affecting legal, institutional and regulatory priorities for environmental and social management in spatial planning in Mozambique. The assessment will focus on, but not limited to,the following questions:

(i)Are existing planning processes adequate for the formulation and implementation of environmentally and socially robust spatial development plans?

(ii)Do the staff in the relevant line ministries of the Government of Mozambique have the necessary capacity, access to the data and processing information tools (hardware and software) for applying up to date environmental and social analysis in spatial planning? Include discussion on relevant experiences in existing SDIs.

(iii)Can the private sector and civil society participate in a transparent and effective way in environmental and social management in spatial planning? Include discussion on relevant experiences in existing SDIs.

(iv)How groups affected by spatial planning decisions can redress environmental and social grievances?

(v)What are vulnerable points where spatial planning can be influenced or distorted by vested interests?How is this affecting environmental and social management in spatial planning?

(vi)Can spatial development plans, particularly the environmental and social components, be significantly changed during implementation? Why?

Task 4: Recommendations and detailed TORs for SDIs

The SESA, conducted through the IMCC, will formulate recommendations at two levels. At the generic or overarching system level, the SESA will present optionsto address capacity gaps and political economy constraints affecting sound environmental and social management in spatial planning, including considerations pertaining the national development planning framework, EIA, involuntary resettlements, inter-institutional coordination as well as legal, regulatory and institutional aspects that might be binding at the time of integrating social and environment issues to planning processes. These recommendations will be discussed and validated with stakeholders as established in the SESA public participation plan

At the SDI level, the umbrella SESA will frame detailed TORs for the 6 SDI-specific SESAs considered under the TA-Loan. These TORs, while derived from the umbrella SESA, should be comprehensive and include specific budget and timelines.Each SDI SESA will be developed in a participatory way following the public participation plan to be developed for each SESA and included in the ToRs. The indicative content of the detailed TORs is sketched below and can be roughly grouped according to the level of development of the SDI

a)Indicative TORs content for existing and incipientSDIs

SDIs under this category include the Maputo Corridor, the Beira Corridor and to some extent the NacalaSDI. SESAs for these SDIsshould center on the management of existing key environmental and social challenges and opportunities important for ensuring the sustainable development of these corridors. A general outline of the SESA TORs includes:

1. Situation Analysis will identify key environmental and social issues currently affectingthe SDI’s area of influence by superposing four layers of information: (i) a base map on the main existing and potential economic projects; (ii) identification of existing and proposed infrastructure projects; (iii) mapping of environmental and community features which will include among other features environmental hotspots, protected areas, watershed function, etc.; and, (iv) environmental investment opportunities.
2. Stakeholder analysis will identify the key public, private and civil society players and their influence on and interests in spatial development planning in these corridors. In this context, women and youth will be engaged in SESA as vulnerable and priority stakeholders.
3. Selection of environmental and social priorities in a participatory way by all key stakeholders informed by the situation analysis and stakeholder analysis. Environmental priorities will be categorized either as environmental challenges or investment opportunities affecting the SDI.
4. Institutional, capacity, political economy and risk assessment will focus on identifying institutional and capacity gaps, political economy constraints and environmental and social risks affecting management of environmental and social priorities in each SDI. The institutional, capacity and political economy assessment will only complement at the SDI level the gap analysis made at the national level by the umbrella SESA. Examples of questions to be addressed are the following:

-What are the specific institutions (i.e., land tenure, protected areas, etc.), capacity (data, data processing equipment, skilled human resources, etc.) and political economy constraints (rents distribution, levels of government, etc) affecting management of environmental and social priorities in the corridor?

-How will these institutional, capacity and political economy conditions will change because of the proposed diversification and densification opportunities?

-What are the new environmental and social risks originated by the proposed interventions?

-What are investment opportunities associated with environmental services in the SDI?

-What are the residual institutional and capacity gaps and political economy constraints affecting management of environmental and social priorities in the corridor, including seizing environmental investment opportunities?

1. Recommendations to address institutional weaknesses, capacity gaps and political economy constraints to be included in the SDI for managing environmental and social priorities, taking advantage of investment opportunities. This section will include an action matrix detailed main proposed implementation activities, indicators, and a monitoring, evaluation and implementation plan involving key stakeholders.

b)Indicative TORs content for identified yet not developedSDIs

SDIs under this category include, so far, only the LubomboSDI. SESA should focus on assessing and proposing adjustments for managing environmental and social risksand taking advantage of environmental investment opportunities in this corridor. A general outline of the SESA TORs would include:

1. Situation Analysis will focus on screening and scoping key environmental and social risks and environmental investment opportunities.
2. Stakeholder analysis will identify key public, private and civil society stakeholders likely to be affected by the development of the Lubombo corridor. In this context, women and youth will be engaged in SESA as vulnerable and priority stakeholders.
3. Validation of significant environmental and social risks and environmental investment opportunities in a participatory way involving the government, private sector and civil society stakeholders.
4. Formulation of institutional framework and capacity building requirements to mitigate potential environmental and social risks and taking advantage of environmental investment opportunities
5. Formulation of monitoring, evaluation and implementation planinvolving key stakeholders.

c)Indicative TORs content for potentialSDIs

SDIs under this category include the Lichinga-Mueda SDI and the North-South Great East African Barrier Reef SDI. SESAs for these corridors might not be able to systematically identify risks and environmental investment opportunities but should be able to compile lessons from similar SDIs (in Mozambique or in other countries) and produce an Environmental and Social Management Framework. The SESA in these cases should look and analyze trends of environmental and social issues in the area of influence of the SDI. A general outline of the SESA TORs includes:

1. Situation Analysis will focus on trends of environment and social issues in the SDI’s area of influence to identify key potential issues and environmental opportunities.
2. Extrapolation of lessons. Drawing from other SDIs (Maputo, Beira, and Nacala – and non-Mozambican experience, eg Costal Corridor in Chile)
3. Produce an Environmental and Social Management Framework.

Task 5: Individual SESAs for the SDIs

For each SDI a SESA spatial planning exercise will be carried out following the completion of the scanning and project identification phase as set out in the detailed ToRs included in the umbrella SESA as per task 4 above.

Task 6: Dissemination

The umbrella SESA draft report, recommendations and detailed TORs and the draft report SDI SESAs will be validated in workshops that will convene relevant sectoral and area wide stakeholders. Dissemination of the final product (an umbrella and six SDIs SESAs) will be done in ways that are culturally appropriate for the different stakeholders.

5.Institutional Arrangements

The SESA will be undertaken through the instrument of the Inter-Ministerial Co-ordination Committee (IMCC), as SESA is a multi-sectoral planning tool. Because of the multi-sectoral nature of spatial planning and of the SDIs the IMCC will also serve as the SESA Steering Committee which will function as an advisory group led by an appropriately mandated Ministry.

6.Key Staff and Required Skills

The team should be led by a professional with broad expertise in spatial planningwithover 10 years of relevant experience. The team leader should be supported by a part-time team of consultants with expertise in the following areas:

-Strategic Environmental Assessment/ Environmental Planning and Management

-Stakeholder engagement and participation

-Institutional Assessment

-GIS

-Political economy

-Land Acquisition/Resettlement

-Environmental Economics

-Environmental and Social Impact Assessment

-Water Resources Management/Surface and Groundwater Quality

-Ecology/ Ecosystems approach

-Sociology (with focus in vulnerable groups gender and youth)

7.Timeline and Indicative Budget

SESA / Budget / Year 1 / Year 2 / Year 3 / Year 4 / Year 5
Umbrella SESA / 50,000 / 
Maputo SESA / 125,000 / 
Beira SESA / 125,000 / 
Nacala SESA / 150,000 / 
Lubombo SESA / 150,000 / 
Potential SDI Lichinga-Muenda SESA / 50,000 / 
Potential SDI N-SGEABR SESA / 50,000 / 

= year quarter