INITIAL ENVIRONMENTAL EXAMINATION

Program/Activity Data:

Country: Objective:

Activity Name:

Funding Period: LOP Amount: lEE Prepared by: lEE Amendment (YIN)

Philippines To provide seed grants to support business start-ups, promote innovation through entrepreneurship, and advance citizen advocacy for greater public accountability, transparency and integrity. Philippine-American Fund for Entrepreneurship and Local Assistance for Development (PAUNLAD) 2012·2017 $ t 2 million Catherine Hamlin (chamlin@Usaid.gov) Date: May 22,2012 N Date of original lEE: N/A

Environmental Action Recommended:

Categorical Exclusion: Positive Determination: With Conditions:

[ X J [ J [X J

Deferral: Negative Detennination: Exemption:

1. BACKGROUND AND ACTIVITY DESCRIPTION

1.1 Purpose and Scope aflEE

[ J [X J [ J

The purpose of this rEE, in accordance with 22CFR216, is to provide the first review of the reasonably foreseeable effects on the environment, as well as recommend Threshold Decisions for the activities under the PAUI'\LAD Project. Th is IEE provides a brief statement of the factual basis for a Threshold Decision as to ",'hether an Environmental Assessment or an Environmental Impact Statement is required for the activities managed under this program.

1.2 Background

The PAUNLAD Project, also referred to as the PAUNLAD Grant Facility, will oversee and manage grants to local organizations over a five-year disbursement period . PAUNLAD will support the Partnership for Growth (PFG) Initiative, which seeks to address the most serious constraints to economic growth and development in the Philippines. The grant-making mechanism was designed to support local initiatives that contribute toward the goals envisioned in the PFG. By working directly with Filipino organizations, the project also supports the implementation and procurement reform goals of the USAID Forward Initiative to which USAID Philippines is party and pilot.

The PAUNLAD Grants seek to fulfill the goals of the 2011·2016 Philippine Development Plan (PDP) of improving the country's national competitiveness by, among others, catalyzing

entrepreneurship in priority, high-growth sectors of the economy. The Project also aims to promote the PDP's normative standards of good governance by fostering participation, ensuring transparency. demanding accountability, promoting efficiency, and upholding the rule of law in economic, political, and administrative institutions and processes.

The grant facility comprises two broad components to promote inclusive growth: enterprise development and governance. Sub-grants will fund local, non-sovereign entities (enterprises and organizations) in efforts to promote inclusive grO\vth. Subject to USA TD approval for all awards made under the faci lity, the grant-making mechanism will help accelerate employment generation and a more competitive, market-driven economy.

Success for this project will be achieved i f the outcomes of the subgrants issued contribute to inclusive growth as a result of advancing good governance and new businesses.

The implementing partner for the PAUNLAD Grants will have considerable interaction and coordination with implementers of other parts of the PFG, including implementers of the other USAID-managed projects and other USG agencies participating in the PFG. The project will be implemented over a five-year period at a total cost of S 12 million.

1.3 Description of Activities

13.1 Objective and Results

Complementing the other components of the Partnership for GroW1h portfolio, the PAUNLAD Project will support local, nongovernmental organizations in activities that contribute to entrepreneurship and business start-ups, as well as to civil society advocacy and transparency initiatives.

PAUNLAD encompasses three broad areas of activities. First, the Project wi ll establish a grant­making facility to provide seed funding to qualifying recipients (here, referred to as sub­grantees) through a local, competitive process. Second, PAliN LAD will integrate the overall strategy, allocations, and management of USAID grant-making activities in the areas of governance and economic growth. Finally, the Project will manage and administer the grant facility on behalf of USAID. This grant administration entails issuing solicitations, reviewing and pre-screening proposals, awarding grants, monitoring and evaluating grant performance, and reporting to USAID. lndividual sub-grants are expected to average about $250,000-5500,000 USD (IO.6M - 21.3M PHP) for qualified PAUNLAD recipients in areas of civil society empowerment and entrepreneurial development. The PAUNU\D grant-making facility carries a total estimated budget of S 12 million - subject to the availability of funds - over a five-year grant-making and disbursement period.

Specific targets will be proposed by the implementer and negotiated at the time of the award.

1.3.2 Activities

The ant icipated PAUNLAD Project activities are shown in Table I.

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T bl I PAUNLW P a e . . rOJect K A . . . ey ctivlOes . Kevarea Activities

Design a grant-making facility including a strategy and workplan for grant-makin~ that wi!l accomplish ob"ectives of the PAUNLAD project. Develop and establish a process by which grant concepts are developed,

Establish a reviewed by USAID, structured into a solicitation. publicized, submitted and Grant-Making evaluated.

Facility Design a strategy for grar.! management including administrative and financial oversight, activity monitoring, reponing to USAID, oversight of branding and marking and all publicity materials or events, and closure or termination of J!;rant$.

Jntegrate Develop grant instruments that wiil support business start-ups, promote Governance innovation through. entrepreneurship, and advance citizen advocacy for greater

and Economic public accountability, transparency and integrity. Growtb Goals Dcsign strategies for using the grant-making instruments to complement other

into Grant- components of the PFG ponfolio, or to integrate actions between grantees that Making are complementaI)'.

Activities Issue solicitations and do wide promotion and publicity in order to gamer sufficient responses. Conduct technical and financial evaluations of proposals. Prepare pre-screened, pre-selected applications/applicants for USAlD review

Administer and according to USAlD guidance.

Grants on Issue awards to winning applicams, employing standard procedures for

Bcbalfof contractual and financial transactions and agreements, as determined by the Offeror.

USAID Manage grants after issue: monitor activity implementation and attainment of agreed targets within performance plans, and report on activities and results. , ensure that grantees implement agreed-upon activities and mect established targets. Conduct closeouts and when necessary, tenmnalions.

Evaluations End ofpro·ect extcrnal evaluation.

The PAUNLAD Project, by virtue of its, grant-making function, may support grantees that purchase small commodities for business start-up, such as agricultural inputs; small-scale agricultural or motorized equipment for fanning, irrigation, or transport; or small-scale manufacturing or processing equipment. Subgrants are not expected to support erection of infrastructure.

2. COUNTRY AND ENVIRONMENTAL INFORMATION (BASELrNE INFORMATION)

2.1 Locations Affected

The geographical areas to be supported by the PAlJNLAD grants will be detennined by the implementing organizations in consultation with USAlD. One of the considerations for grants selected will be if they complement other PFG-related USAID-supported activities. To that effect, some grants may be implemented in the cities targeted in the City Development Initiative, which currently include Batangas, Iloilo and Cagayan de Oro.

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2.2 National Environmental Policies and Procedures (of host country both fOT environmental assessment and pertaining to the sector)

Presidential Decree No. 1586, issued on June 11, 1978, established the Philippine Envirorunental Impact Statement (EIS) System while Presidential Proclamation No. 2146 defined its scope and Administrative Order No. 2003-30 of the Department of Environment and Natural Resources provided the implementing ruJes and regulations.

The EIS System is concerned primarily with assessing the significant impacts of a project on the environment and ensuring that these impacts are addressed by appropriate measures. The EIS System requires all project proponents to prepare an environmental impact assessment (ElA) for any activity that substantially affects the quality of the environment. The EIA should be environmentally conscious, technically sound, and socially acceptable. By being so, the Ers system will not only regulate industrial pollution but also protect natural resources, fragile ecosystems, and the rights of local communities. More than a regulatory scheme, the EIS System is a comprehensive planning and management tool as well. The Environment Management Bureau, a line bureau of the Department of Environment and Natural Resources (DENR), is the agency responsible for policy development and review as well as monitoring the implementation of EIA-related laws.

Thc first step in the Philippine EIS process is "screening" to detennine which requirement covers the project under examination. The law pre-categorizes projects based on the degree of potential environmental impacts and each category has a prescribed environmental assessment instrument. The table below lists the categories and the required environmental study or report :

E nVlronmenta Ie d th PhT ategones un er e lltppme EIS S " :system Environment Descriptions Required Environmental

Catce:orv Assessment StudvlReport Category A Environmentally critical proje<:ts or projects with significant

I potential to cause negative environmental impacls. Full EIA

Category B Projccts which are not cnvironmenEally critical but which may lnilial Environmental C2.use negative environmental impacts because they are Examination or Full EIA located in environmentally critical areas.

Category C Projccts that are intended to directly enhance environmcntal Project Description with I quality or address existm<> environmental oroblems. EMMP

Category 0 Projects that are considered outside the purview of the Project Description Philippinc EIS System because they do not have negative environmental imoacts.

Co-located Projects or series of similar projects or a Programmatic EIA project subdivided to several phases and/or stages by the same

! proponent, located in contil!:UollS areas. E;o;:pansion Expansion of Existing Projects Envirorunental

Performance Report and Management Plan"

,< , SQurce: The P/J/hpprne Envlronmel1lClf ImpaCT SUlfemenT Sy.~lem : Frame'worK. irnpicmentamm. Performance and

Chaflenge.<; . .. The World Bank and Asian Del'fdopmem Bank. June 2007. Page 23.

Based on this categorization, projects covered in this lEE wil l fall within two categories:

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• Category B: Projects which are not environmentally critical, but which may cause negative environmental impacts. The EIS recommends an Initial Environmental Examination for such activities.

• Category D: Projects that are considered outside the purview of the Philippine EIS System because they do not have negative environmental impacts. The EIS recommends a Project Description for such activities.

The PAUNLAD implementer shall secure any and all required environmental clearances for its any activities with potential negative environmental impacts from the respective Regional Offices ofthe Philippines DENR-Environmental Management Bureau in the relative region/province before project implementation in compliance with the Philippine EIS System. Compliance ofPAUNLAD activities with the EIS system is highly recommended by USAID, but USAID may not monitor this as the project implementer is assumed to be complying with applicable Philippines laws in the course of the implementation of PAUNLAD. The implementer ofPAUNLW may choose to require subgrantecs to undenake some of the steps required for environmental compliances, but the ultimate responsibility for compliance will rest with the PAUNLAD implementer.

The PAUNLAD implementer must comply with applicable Government of the Philippines' environmental, health, safety, construction, and other applicable laws, regulations, standards and norms; In addition to host country regulations, the Project implementer shall adhere to those requirements and shall use or reference existing USAlD guidance including: Envirorunental Issues and Best Practices for Small-Scale Infrastructure l

: Environmental Guidelines for Small­Scale Activities2 and IFe Environmental. Health. and Safety Guidelines for Water and Sanitation Guidelines) and other applicable international best practice acceptable to USAID. The implementer must fllrnish USAID with Environmental Documentation Fanns and Environmental Mitigation and Monitoring Programs to be developed in accordance with stipulated Environmental Manual (EM, to-be-approved by CORJMEO) and regular repon (with maps, schemes, photos) on grants approvals, performance and monitoring; and USAJD AOR & MEO, when relevant, should supervise/monitor selected activities with potential moderate (significant, when cumulative or induced) adverse envirofl.mentai and social impacts.

3. EVALUATION OF ACTIVITY/PROGRAM ISSUES WITH RESPECT TO ENVIRONMENTAL IMPACT POTENTIAL

The activities described under this lnitial Environmental Examination are potential areas of assistance to be implemented by subgrantees to the PAUNLAD project, aimed at creation of new businesses, support of entrepreneurship, a.rtd technical assistance and training for civil society advocacy and transparency initiatives.

1 hltp;!lwvrw.usaid.govJlocationsllatin_amcrica_caribbeanienvirorunentJdocs/epiq/chap2/Iac-guidelincs-2-small­scale-infrastructure.pdf l http;llwww.encapafiica.orglcgssaa.htm 1 hnp:f/wwwl.ifc.org/wps/wcm/connecL'e22c050D4885 5ae0875cd76a65 15bb 18/Final%2B­%2BWater''102Band%2BSanitation.pdf'?MOD'''AJPERES

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A Categorical Exclusion (approximately 85 to 90% of all funding) is recommended for the following activities except to the extent that the activities directly affect the environment, pursuanl 10 CFR 216.2(c)(I) and:

a) CFR 216.2(c)(2)(i), for activities involving education, technical assistance or training programs;

b) CFR 216.2(c)(2)(iii), for activities involving analyses, studies, academic or research workshops and meetings; and

c) CFR 216.2(c)(2)(v), for activities invo lving document and infonnation transfers.

A detennination of categorical exclusion notwithstanding, the Mission Environmental Officer and Deputy 1'v1ission EnvirorunentaI Officer are expected to provide advice on andlor inputs to the scope of the assessments, trainings, and related activities as identified in the table below.

Key elements of Threshold determination program / activities and CFR 216 citation

1. Design and development of grant-making facility, Categorical exclusion including aJl aspects of grant-managemem administration and financial oversi~L

CFR 216.2(c)(2)(iii)

2. Subgrants providing technical assistance, training and Categorical exclusion information transfer in: government transparency, crn 216.2(c)(2)(i) corporate integrity measures, advocacy for economic CFR 216.2(c)(2)(iii) and anticorruption reforms; citizen oversight of public crn 216.2(c)(2)(v) institutions and processes (e.g. budget monitoring, eourt watch)

3. Subgranls providing technical assistance, training and Categorical exclusion informat ion that support a) entrepreneurship and CrR 216.2(c)(I)(i) business start-up activities; b) promotion of financing CFR 216.2(c)(2)(iii) for business start-ups via venture capital, equity crR 216.2(c)(2)(v) financing and public-private alliances; and c) enhance liILlcages of business networks, public-private alliances, and complementary partnerships such as research and development institutions.

4. Conduct project-end evaluation Categorical exclusion CFR 216.2(c)(Z)(iiil

It is possible that sub grant activities could include purchase andlor use of small commodities or equipment for business start-up, such as use of agricultural inputs; installation or use of small­scale agricultural or other motorized equipment for fanning, irrigation or transport; and/or equipment for manufacturing or processing. Such activities may have negative consequences on the environment if environmental considerations are not induded in these activities and their resulting program designs. For example, poor project design of such activities could result in spillage of fuel or other machinery fluids into the soil or water supply; increased erosion, for example for inigation machinery; or improper disposal of organic and/or inorganic waste resulting in environmental contamination. Therefore a Negative Determination is recommended for all agricultural, manufacturing or other activities involving machinery or activitics with physical impacts on the environment subject 10 the conditions that is recommended pursuant to 22 CFR 216.3 (a)(2)(iii) for these activities (approximately IOta 15% of all funding).

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Those interventions receiving negative determinations and negative determinations with conditions are listed in Table 4. The interventions are grouped by key activity and include a brief description of the intervention as well as its associated risk classification.

Descriptions and Risk Classifications for Key Activity Interventions Interventions Brief Description Risk

ClassificatioD Key Activity : Installation of Agricultural, Industrial Proccssing or Manufacturing Equipmcnt or Usc of Small~Sca1e Machinery for transport Installation and use of Usc of agricultural processors can have environmental Mcdium risk Sma ll Agricultural impact if fuels or oil are nOI carefully handled and are Processing Machinery spillcd on soil or in wat er .sourceslbodies. Exhaust

generated by such machinery can be damaging to health of humans or animals in close proximity ifthcy arc used in areas that are not adequately ventilated. (In addition, small~

scale agricultural processing could carry human and cnvironmental risks involving the use of chemicals and other manufacturing inputs that require special handling, storage and disposal. Impropcr disposal of toxic or hazardous waste or wastewatcr could harm thc environment. )

Upgrading of small This will consist of providing concrete lining or re~gradjng Low Risk existing irrigation canals and repairing broken parts of existing conveyance canals and conveyance structures, i.e., turnouts, gates, etc. structures Use ofSmall~sca le Use of outboard motor could result in environmental Low risk Trnnspon damagc if fuel or motor oil is spilled on sailor in water. Vchicies/lVlachincry Use of vehicles such as motorcycles similarly requires such as Motorcyc les or application of motor oil and fucl, which if not applied Outboard Motors carefully can result in spillage on the ground. Use of small~scale Machinery of this nature requires use of fuel and oil as Medium risk industrial processing or lubri cant, and possibly other fluids as well. Such fluids manufacruring much be handled carefully to avoid spillage on the ground machinery or in water sourceslbodjes. Exhaust gencrated by such

machi ncry can be damaging to health of humans or anima ls in close proximity iflhey are used in arcas that arc not adequately ventilated. In addition, small-scale manufacturing could carry human and environmental risks involving the use of chemlcals and other manufacturing inputs that require special handling, storage and disposal. Improper disposal of toxic or hazardous waste or wastewater could harm the environment.

Agricultural Agricultural crop production may be demonstrated in plots Medium Risk demonstration plots for business 5tan~up ski ll building. The plOls will not

exceed I ha. and will not use pesticides. Best practices will be followed in the construction and maintenance of the plot as wcll as in capacity buildin~ activities.

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4. RECOMMENDED MITIGATION ACTIONS (INCLUDING MONITORING AND EV ALUA TlO2'/)

4.1 Recommended lEE Determination

To a great extent, the activities covered within PAUNLAD should have no environmental impacts. Creation of a grant-making facility, and subgrant-supported activities in areas transparency and advocacy, as well as support for entrepreneurship and business start-up support, are all types of technical assistance, training and infonnation transfer that will not have a direct significant impact on the environment. Thus, these are recommended for Categorical Excl usion pursuant to eFR 21 6.2(c)(I) and:

a) CFR 216.2(c)(2)(i), for activities involving education, technical assistance or training programs;

b) CFR 216.2(c)(2)(iii), for activities involving analyses, studies, academic or research workshops and meetings; and

c) CFR 216.2(c)(2)(v), for activities involving document and information transfers .

However, activities involving purchase and/or use of small commodities or equipment for business start-up, such as installation or use of inputs; small-scale agricultural or other motorized equipment for fanning, irrigation or transport; or for manufacturing or processing equipment may have negative consequences if environmental considerations are not met. Thus, the resulting program design components are recommended for a Negative Detennination with the foll owing Conditions:

• All technical assistance, workshops, consultations, research, and recommendations fo r program designs in the categories of business start-up and entrepreneurial support will include Best Practices regarding sustainable use, including principles of environmental protection, impact mitigation and environment sustainability.

• For both low and medium risk small-scale activities, the Implementer, or sub­implementer if appropriate, will develop an Environmental Manual (EM) that wi ll guide environmentally sound design for all small scale agricultural, irrigation and mechani zed business start-up projects, which will be reviewed and approved by the AOR and the MEO prior to implementation. The EM should: (1) establish environmental screening, selection and eligibi lity criteria, environmental review process; and (2) provide forms, like the Environmental Documentation Fonn. sample Environmental Mitigation and Monitoring Programs (EMMPs), standard conditions and reporting requirements, and rcferencesllinks to guidelines and best practice acceptable to US AID and GPH. The EM will establish water quantity and quality monitoring procedures. The EM may also have an exclusion list, i.e. activities USAID will not fund as well as a list of activities, with thresholds/significance, which will rcquire guidance from AORJMEO. Examples of activities that may appear on the exclusion list include activities that are proposed close to or in protected areas, coastal lines, sensitive habitats, archaeological, historical and/or religious sites where caution and di ligence should be exercised.

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• Any business start-up related activities will not involve the procurement and or use of pesticides. If the procurement and or use of pesticide become necessary, a Pesticide Evaluation Report and Safer Use Action Plan (pERSUAP) will be developed for review and approval by the Mission Environment Officer (MEO) and the Bureau Environment Officer (BEO) prior to procurement and or usc of pesticides.

• All business start-up-related activities that are classified as moderate risk will firs t require submittal and approval of an activity description including an evaluation of the environmental implications of the proposed project being developed through an Environmental Documentation Form. These documents must be approved by the Agreement Officer Representative (AOR) and the Mission Environmental Offi cer, and if deemed necessary by the AOR, an lEE wi ll be required. Activities that will have potential impacts to the environment must be further reviewed by AOR and MEO through environment review report that will include Environmental Mitigation and Monitoring Plan (EMMP). Subsequently, if any of the activities are determined to have significant impacts on the environment that would result in a classification of high risk, the PAUN LAD implementer will be required to decline from providing grant suppon for that activity.

• If pesticides are detennined to be needed for cold storage faci lities or other rehabilitation activities, a Pesticide Evaluation Repon and Safer Use Action Plan (PERSUAP) must be reviewed and approved by the BEO.

• If, during implementation, activities are considered other than those described above, further envirorunental review will be conducted by the implementing partner, which will be cleared by the relevant MEO and BEO prior to activity implementation.

• Caution should be exercised when doi ng some site-specific activity that may require land acquisition & compensation, and resettlement. If any land acquisition or resettlement is identified or possible, 01e implementer should immediately seek guidance fTom AORIMEO as a land acquisition, compensation and resettlement plan may be warranted as per World Bank Operational POlicy 4.12.

• These conditions will be integrated in the procurement instruments (contract and/or grant agreement) and shall be reflected in the over-all work plan of the implementers andlor grantees, as appropriate. If necessary, the contract or agreement will require the preparation of an environmental miti gation and monitoring program that will be reviewed and approved by the AOR and the MEO.

• In accordance with ADS 204.3.9.(a), a due diligence investigation of the environmental record and practices of each partner in a Public-Private Partnership (PPP) will be made particularly an analysis of a partner's past record of environmental accountability and how it might affect the partner's specific plans under the PPP.

4.2 Mitigation, Monitol"ing, and Evaluation

After award and at the time of project launch, the AOR together with the MEO will explain and advise the implementer on environmental compliance and the necessary reporting process. The conditions identified in this IEE will be integrated into the awards to implementing partners,

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which will require the development of an Environmental Mitigation and Monitoring Program (EMMP). The EMMP will be prepared by the implementing partner and will be approved by the AOR and the MEO. The EMMP wiII be developed at the project or activity level to monitor and implement the conditions stated above. TIle EMMP wiII include procedures for integrating environmental mitigation measures into the issuance and management of subgrants, and the implementer will ensure that conditions stipulated in the EMlVfP flow down as relevant to the subgrantees. In addition, project work plans and budgets wiII specifically provide for the implementation of the EMMP. Perfonnance management plans will also incorporate measures of EMMP implementation for review and approval of the AOR. The implementer will employ an Environmental Impact Professional to assist with required envirorunental compl iance measures and associated documentation.

4.3 Limitations of the lEE

This IEE does not cover activities involving:

1. Assistance for procurements (includes payment in kind, donations, guarantees of credit) or use (including handling, transport, fuel for transport, storage, mixing, loading, application, cleanup of spray equipment, and disposal) of pesticides (where pesticides cover all insecticides, fungicides, and rodenticides, etc. covered under the "Federal Insecticide, Fungicide, and Rodenticide Act" FlFRA.) or activities involving procurement, transport, use, storage, or disposal of toxic materials, which will require preparation of a PERSUAP in accordance with Reg.216.3(2)(b)(1)~(2) in an amended lEE submitted to AsiaIBEO for approval.

2. DCA or GDA programs. 3. Use of non-native or potentially invasive species will require additional analysis to be

conducted. 4. Assistance, procurement or usc of genetically modified organisms (GMOs), which would

require preparation ofbiosafety assessment (review) in accordance ADS 201.3.12.2(b) in an a:.-nendment to the lEE approved by Asia 8EO.

5. Procurement or use of Asbestos Containing Materials (ACM) (i.e., piping, roofing, etc.), Polychlorinated Biphenyl's (PCB) or other toxiclhazardous materials prohibi ted by USEPA as provide at http://www.epa.gov/asbeslos and/or under international environmental agreements and conventions, e.g. Stockholm Convention on Persistent Organic Pollutants as provided at http://chm.pop.int

Any of these actions would require an amendment to the IEE duly approved by the Asia BEO.

5.4 Revisions

Pursuant to 22CFR216.3(a)(9), ifnew activltics are added and/or infonnation becomes available which indicates that activities to be funded by the Program might be "major" and the Program's effect "significant," this Categorical Exclusion will be reviewed and revised by the originator of the project and submitted to the Bureau Envirorunental Officer for approval and, if appropriate, an environmental assessment will be prepared."

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MISSION APPROVAL:

Chief,OEDG aria e don Date

Mission Environmental Officer Anderson Date

CLEARANCE: Bureau Environmental Officer/Asia

CONCURREl'o'CE: Regional Environmental Officer for Asia & OAPA ---7Y-"ia:.;em=a"il,-~;-__ --;:;05",12,,-4,,/,,-20::.1:.:2,-___ _

Andrei Barannik Date

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Standard Conditions for Small-Scale Irrigation Projects

SmaU-scale irrigation activities have the potential to result in significant adverse environmental impacts, but most of those impacts can be mitigated down to acceptable levels through the use of good siting, design , construction, operations and maintenance practices.

These standard conditions have been developed by USAlD's Bureau for Europe and Eurasia (E&E) to ensure that small-scale irrigation activities do not result in significant adverse environmental impact. When adherence to these conditions is required as a condition of project implementation, no significant adverse environmental impact is presumed to result. Project Officers, CORs, Mission Environmental Officers, Contract Officers and implementing organizations must nonetheless be aware that these standard conditions are generic in nature, and that additional potentially significant adverse environmental impacts may be associated with small-scale irrigation activities. It is the responsibility of tire individual USAID missions. and/or their implementing contractors and granteel·, to monitor irrigation activities and to ensure that significant adverse environmental impacts do not result.

For the purposes of this guidance, "small -scale irrigation projects" are defined as activities that: (1) cost less than S 100,000 per individual project; (2 ) do not bring significant areas of currently unirrigated lal1d under irrigation; (3) do not involve the construction of new dams, trunk canals, or river trainlng works; and (4) do not involve rehabili tation of existing dams over fifty feet in height.

Because of the exceptionally diverse physical, biological and social environments in which irrigation projects take place, and the broad kinds of irrigation activities that are financed, these Standard Conditions are to be followed "as practicable and appropriate."

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Standard Conditions for Small-Scale Irrigation Projects

IRRIGATION SYSTEM IMPROVEMENTS

As a general rule, small-scale irrigation projects should be designed to achieve or promote some or all of the following objectives:

• Better water management, including better water use efficiency and lower water losses • Bener water quality • Lower sediment loading • Less erosion • Less waterlogging and soil salinization • Improved inigation system operations and mainteance • Healthier conditions fo r irrigation workers.

Specific actions that can be used to avoid or reduce adverse environmental impacts on small­scale irrigation projects are as follows:

Water Use Efficiencv

• Improve water control through good canal and weir design • Keep canals, headworks. regulators, modules and water courses free of debris • Add water storage capacity where water is seasonally scarce • Improve water depth consistency through improved land leveling • Ensure the suitability of crops to avail able water supply • Monitor groundwater tables when irrigating from groundwater • Train fanners and system operators in how to improve water use efficiency.

Water Loss

• Use drip irrigation where practicable • Use piping where practicable, instead of canals • When using canals, employ design standards that limit evaporative loss • Design canals that are relatively narrow and deep • Cover open canals • Line canals to limit water loss through percolation • Reduce evapotranspiration by keeping canals clear of vegetation • Monitor and repair leaks from cracked canal and containment structures, broken pipes,

faulty valves and similar infrastructure • Reduce evaporation on center pivot and sprinkler systems by irrigating at the coolest time

of day • Train fanners and system operators in how to reduce water loss.

'Vater Quality

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• Use design standards that lower sediment loads in irrigation water • Identify and monitor water quality parameters with adverse crop and human health impacts ,. Train fanners and system operators in how to improve water quality.

Erosion

• Use terracing and similar techniques to reduce land surface erosion • Plan for devices that can protect against scour where water scour potential is an issue (e.g.,

culverts, drops, chutes, control structures) • Train fanners on how to reduce land and facility erosion.

Waterlogging and Salinization

• Monitor groundwater levels and salinity • Use sprinkler or drip irrigation systems where possible • Improve system drainage • Train farmers to recognize waterlogging and salinization problems.

Operations and Maintenance

• As a rule, financing for irrigation infrastructure improvements should not be provided unless appropriate operations and maintenance (O&M) provisions are in place.

• Establish an appropriate maintenance schedule for inspection and reporting perfonnance conditions.

• Periodically review system components to verify that they meet the original design criteria for efficient operations and unifonn distribution of water.

• Wherc appropriate, prepare an O&M Manual before the irrigation system starts operations. • O&M plans should address, inter alia, financial and system power issues.

Human Health

• Understand what water-related disease vectors occur in association with the irrigation system, and design system improvements to reduce those vectors

• Don't use irrigation water as a potable water source • Line canals and ditches • Cover or pipe water where possible III Prevent backwaters or slow-moving water where vegetation and disease vectors are more

easily established III Use application rates that avoid generating areas of standing water • Keep canals and ditches free of weeds, sediment and snails • Actively control disease vectors • Train farmers and system operators to recognize and deal with system characteristics with

the potential to adversely affect human health.

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Other Irri.gation System Conditions

• Design canals to maintain appropriate flow veloci ties • Plan for access of canals to facilitate cleaning, sediment removal and vector control • Design appropriate canal crossing srrucrurcs at appropriate intervals • Plan for gates at the lower end of canals to they can be flushed to the nearest drain • Do not use materials containing asbestos on USAID funded projects. • Replace lead pipes and joints in delivery system.

File: Standard Conditions for Small-Scale irrigation Projects

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