FROM THE AMERICAN PEOPLE

INITIAL El'NTRONl\'IENTAL EXAl\1JNATION (IEE) REQUEST FOR CATEGORICAL EXCLUSION (RCE)

PROJECT/ACTIVITY DATA:

Activity Name: United Nations Verification and Inspection Mechanism for Yemen (UNVIM) Project Extension - Amendment 2 Country/region: Yemen StartDatc: 6/30/2017 End Date: 3/3l/2019 Life of Project Amount($): 7,000,000 Amendment: Yes (Original IEE ME 17-48) IEE Prepared by: Suzanne Ebert Date: 12/19/2017

ENVIRONMENTAL ACTION RECOMMENDED: (Place X where applicable)

Categorical Exclusion: Positive Determination:

Purpose and Scope:

[ X] [ ]

Negative Determination with Conditions: Deferral:

[ ] [ ]

This IEE amends IEE 1v/E 1 7-48 Amendment lto extend the expiration date from 9/30/2018 to 3/31/2019aud increase tile Total Estimated Cost (TEC)fi'om $2.0 million to $7.0111illio11. The scope of activities to be increased is identified under section heading, "Background and Description of Activities."

The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22CFR216), is to provide a preliminary review of the reasonably foreseeable effects on the environment, as well as recommended Threshold De.cisions, for the activities detailed below. This document provides a brief statement of the factual basis for Threshold Decisions as to whether an Environmental Assessment or an Environmental Impact Statement is required for the activities managed under the scope of this document.

The activities under review are recommended for categorical exclusion.

Background and Description of {\ctivities:

UNVIM was established to facilitate the flow 6f commercial goods and services to Yemen and support compliance with the aims embargo established pursuant to UN Security Council Resolution 2216 (2015). The mechanism provides timely and impmiial clearance services for shipping companies transporting commercial impo1is to Yemeni ports outside of the authority of the Republic of Yemen Government (ROYG) and deters actors from using commercial vessels subject to UNVIM screening to smuggle illicit goods into the country. UNVIM has helped sustain the flow of imports of basic commodities into Yemen after a period when imports dropped to near-zero levels, thereby helping to keep prices stable inside Yemen and fulfilling an essential humanitarian nee·d: This activity, managed

by the UNO PS, will cover these critical operations from June 30, 20 l 7 through March 31, 2019.

The activity focuses on the following: • Provide coordination, communication and notification services for managing clearance

requests with the Government of Yemen, the Evacuation and Humanitarian Operations , Cell (EHOC) of the Coalition Forces, and other stakeholders.

• Ensure effective processing of all clearance requests destined for Yemeni ports not under ROYG control in less than 40 hours.

• Conduct primary inspections of all identified vessels in international waters, ·and if needed, a secondary inspection at berth in the port of Djibouti.

• Continue to improve data-collection, analysis and publication of the situation of Yemen's Red Sea ports in collaboration with OCHA and other relevant stakeholders.

• Meet all reporting requirements on operations in a timely manner whilst improving the availability ofUNVIM operational data to support decision-making and ensure transparency of the clearance process.

• Deploy monitors to international transshipment po11s and Hodeidah port in coordination with relevant authorities and OCHA.

• Advocate with Members States regarding their responsibility to ensure vessels leaving their territorial waters towards Yemen's Red Sea ports do not carry prohibited items Onboard.

• Establish Standard Operating Procedures (SOPs) for vessels redirected and inspected in Member State po11s other than Djibouti to avoid costly delays.

• Establish clear guidance on the expo11 and import of utility vehicles to Red Sea ports in collaboration with key stakeholders.

• Liaise with Coalition forces and establish a code of conduct for inspections conducted on their beha1t: including for small vessels.

Under the revised agreement additional resources will permit the following activities to be initiated, expanded or enhanced: ·

• Reinstating Salalah, Oman as a transshipment port: Following feedback from Member States,· UNVIM proposes to reinstate the proposal for the deployment of three (03) UNVIM Monitors to the transshipment port of Salalah, Oman, to conduct the inspection of vessels and cargo destined for areas of Yemen not .under control of the Government. Salalah remains one of the · largest regional ports for Yemeni impo11s and UNVIM has so far been unable to deploy Monitors to this area. This particular activity will necessitate prior approval by the Government of Oman, which has not been provided to date.

• Increasing the number of Cargo Inspectors from 04 to 10 and UNVll\1 Monitors from 06 to 16: As stated above, the consequential increase in responsibilities in terms of the anticipated increased number of inspections would require ten additional UNVIM Monitors and six (06) additional contracted CTG Cargo Inspectors to be recruited for Djibouti, King Abdullah Pmt and Jeddah, KSA, Salalah, Oman, and Dubai, UAE. This increase in capacity would increase UNVIM's operational reach to conduct vessel inspections whilst ensuring UNVIM's operational continuity during thi.s increase in inspections. UNVI.NI will also recruit one (01) additional Coordination Officer for King Abdullah Port, KSA, to liaise with UNVIM's HQ in Djibouti. ·

« Purchasing additional inspection equipment: To assist the UNVIM team in Djibouti with the scanning of containers and cargo in Djibouti po1i, UNVIM proposes to purchase a paiiicle detector of the Safran Morpho Hardened Mobile Trace type for use by UNVIi\iI's inspection teams to confirm the finding of suspicious elements in UNVIM's cargo. UNVIM also intends to purchase a mobile scanner at a cost ofUSD 1,500,000 for the port of Djibouti to facilitate the timely inspection of container vessels.

o Increasing the number of explosive-detecti_on dogs (EDD) from 02 to 04 in Djibouti: UNVIM proposes to double the number of TOI EDDs and clog-handlers from two (02) to four (04). As EDDs need rest during inspections and considering the heat in Djibouti, the increase in the number of inspections would necessitate additional capacity to ensure the EDDs' welfare and operational continuity.

• Renting a paii of the p01t of Djibouti: Following the discussions conducted mid-December with the Coalition, UNVll\11 conducted meetings with the authorities of the Republic of Djibouti (Ministry of Foreign Affairs and National Security) to explore the possibility of renting quays and berths in the port of Djibouti to ensure a constant location to conduct inspections. This would accelerate the inspection process and increase UNVIM's capacity. The authorities of the Republic of Djibouti welcomed the idea and requested UNVIM to trigger the first official request regarding this demand in writing. UNVIM estimates the monthly cost of renting this paii of the po1t at USD 150,000. This would require the formal signing of a Memorandum of Understanding between UNVllv1 and the republic of Djibouti.

Previous USG experience with UNOPS and UNVIM have shown the mechanism to be effective in not only conducting clearance and inspection services described above, but in also fulfilling other key functions as described below.

UNVIM provides visibility on cargo into Hudaydah. A longstanding concern from the Coalition-and a key part of the impetus for UNVIM has been what kind of cargo is headed for Hudaydah. Commercial vessels bound for Hudaydah are all screened by UNVIM. UNVIM reviews their manifests and previous ports of call, and if anything is suspect, will conduct an inspection. UNVIM also works with the Coalition when it requests any specific vessels be inspected. Based on UNVIM' s inspections and reporting since it was initiated, most vessels bound for Hudaydah come either from other Coalition countries or po1is that would have little risk of weapons smuggling (e.g. the EU, United States, or Australia).

UNVIM provides essential humanitarian pipeline data for running a humanitarian assistance response by distributing regular rep01is on vessels that have been cleared or are awaiting clearance. UNVIM data on the status of ships arriving at ports (including delays) allows humanitarians to understand the relative pipeline of supplies entering the country and thus appropriately plan their own approach.

UNVIM is an essential confidence-building measure for the private sector. When the Saudi blockade was not allowing any sides into Hudaydah Port over several months in 2015, private sector impo1ters reported a lack of confidence in being able to resume impo1is to Yemen. One key point for initiating UNVIM was to re-instill confidence in the private sector that there was a non-conflict actor stabilizing the importing environment. Since its launch, major Yemeni food importers and humanitarian staff have publicly stated that UNVIM has been value-added. The Yemen Economic Refo1m Team, a group of high-level Yemeni private sector actors, stated in early 2017 that UNVIM is the only. Agency with

reliable data on ships be1ihing at Red Sea ports.

Recommended Threshold Decision:

Justification fo1· Categorical Exclusion Request

The activities described justify Categorical Exclusions, pursuant to 22CFR2 l 6.2( c )( 1) and (2), for which an Initial Environmental Examination, or an Environmental Assessment are not required because the actions do not have an effect on the natural or physical environment.

Specifically, as currently planned, these activities fall into the following classes of action: - Education, technical assistance, or training programs except to the extent such programs include

activities directly affecting the environment (such as consh·uction of facilities, etc.) - Analyses, studies, academic or research workshops and meetings - Document and information transfers - §216.2(c)(2)(iv) Projects in which USAID is a minor donor to a multi-donor project and there are

no potential significant effects upon the environment of the United States, areas outside any nation's jurisdiction or endangered or threatened species or their critical habitat.

Climate Risk Management

As per the ADS 20lmal and the executive order on "Climate-Resilient International Development," USAID should factor climate resilience into international development programs and investments. The design team has identified expected climate change impacts over the life of the activity's expected benefits and determined these risks are ranked low. The DO-level climate risk screening table is on file with the USAID/Yemen Program Office and the Mission Environment Officer (MEO).

Revisions and Limitations

If during implementation, project activities are considered outside of those described in this document, an amendment shall be submitted. Pursuant to 22CFR216.3(a)(9), if new activities are added and/or information becomes available which indicates that activities to be funded by the project might be "major" and the project's effect "significant," this determination will be reviewed and revised by the Contract/ Agreement Officer's Representative of the project, and submitted to the Mission Enviromnental Officer and Bureau Environmental Officer for approval and, if appropriate, an environmental assessment will be prepared.

APPROVAL OF REQUEST FOR CATEGORICAL EXCLUSION - United Nations Verification an d

Inspection Mechanism for Yemen (UNVIM) Project Extension - Amendment 1

Robert Davidson, General Development Officer

Clearance cleared ------

Jeanette Normand, Acting Mission Environmental Officer

Clearance cleared by email __ _

Roslyn Waters-Jensen, Program Officer

Clearance

APPROVAL:

R. David Harden, Senior Development Advisor

cleared by email_ 4/ l 7/2018 ___ _ Date

CONCURRENCE:

John Wilson, Bureau Environmental Officer

l o h/4c---________ Date

4/17/2018 ---Date

4/17/2018 ----

Date

Date