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Cross-Border Infrastructure: A Toolkit Environment and Safeguards Case Study: ADB Policies Session on Planning & Policy Rita Nangia Asian Development Bank.

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Presentation on theme: "Cross-Border Infrastructure: A Toolkit Environment and Safeguards Case Study: ADB Policies Session on Planning & Policy Rita Nangia Asian Development Bank."— Presentation transcript:

1 Cross-Border Infrastructure: A Toolkit Environment and Safeguards Case Study: ADB Policies Session on Planning & Policy Rita Nangia Asian Development Bank The views expressed here are those of the presenter and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors, or the governments they represent.

2 Cross-Border Infrastructure: A Toolkit Session Description The Session covers topics at both macroeconomic level and at project and policy planning levels. Environmental challenges Problems of urbanization and resettlement Project level Issues ADBs guidelines Good practice: Northern Economic Corridor case study

3 Cross-Border Infrastructure: A Toolkit Contents Why do infrastructure planners need to worry about environment? Policy and project level Issues Special challenges of cross-border projects ADBs guidelines Good practice: Northern Economic Corridor

4 Cross-Border Infrastructure: A Toolkit Why Do We Need to Worry About the Environment?

5 Cross-Border Infrastructure: A Toolkit Environmental Dynamics in Asia Decline in quality and quantity of natural resources Degradation of fundamental ecosystems, (e.g., natural cycling of water and nutrients and biological dynamics) Increased climate related environmental hazards such as floods and droughts Water and air pollution

6 Cross-Border Infrastructure: A Toolkit Degradation of natural resources Freshwater resources Marine and coastal environment Land degradation Deforestation Loss of biodiversity Ecosystems Loss of fish catch (e.g., average hourly catch fallen from 250 kgs to 18 kgs in Gulf of Thailand) Air pollution Urban air pollution (3 - 6 million life years lost) Cross-border (trans- boundary) air pollution Climate change Others Solid waste problems (more than ten-fold increases) Hazardous substances and wastes

7 Cross-Border Infrastructure: A Toolkit Major Causes of Environmental Stress High income growth Rapid production increases in agriculture +60% Industrial production growth +40% Rapid globalization in Asia leads to Leads to global consumption patterns High urbanization rates High energy use and low energy efficiency Development model biased towards economic growth Weak institutions, policy and planning

8 Cross-Border Infrastructure: A Toolkit Cross-Border Environmental Conditions Haze incidence of Losses around $9 billion 9 million hectares of land 70 million people affected Atmospheric brown clouds Air pollution due to SOx and NOx Resulting losses due to acid rain Even difficult to assign responsibility for relatively simple impacts such as logging and loss of biodiversity across borders. Weak institutions, policy and planning

9 Cross-Border Infrastructure: A Toolkit Policy Level Issues Differences in policy environment to deal with environmental and social offences Differences in institutional framework and legal remedial measures Quality of institutions Often remote areas difficulties in monitoring Negotiations to who pays the costs and system of compensation for those impacted difficult to arrive at

10 Cross-Border Infrastructure: A Toolkit Safeguards: Why? Belief that nobody should be worse off due to projects and programs Prevent and mitigate harm to people and their environment in the development process Improve environmental and social sustainability of projects Improving overall development outcomes Address reputational risk to ADB

11 Cross-Border Infrastructure: A Toolkit ADBs Safeguards Policies Environmental Considerations (Environmental Assessment) EA IR IP Indigenous Peoples Involuntary Resettlement Subject to ADBs accountability mechanism Applies to all public and private sector projects SP

12 Cross-Border Infrastructure: A Toolkit Environmental Assessment

13 Cross-Border Infrastructure: A Toolkit Environmental Considerations Potential environmental impacts are identified including indirect and cumulative impacts, and their significance assessed Alternatives are examined Least-cost (mitigation) measures are designed to avoid or minimize negative impacts and achieve environmental standards Environmental management plans prepared (with institutional arrangements, monitoring program, time plan and budget)

14 Cross-Border Infrastructure: A Toolkit Environment Policy Promote environmental interventions to reduce poverty Mainstream environmental considerations in economic growth Maintain global and regional life support systems Build partnerships Integrate environmental safeguards in ADB operations

15 Cross-Border Infrastructure: A Toolkit Environmental Assessment A process of environmental analysis, planning and management To mitigate environmental impacts Integrated with assessment of other aspects of project (technology, economic viability, social analysis, etc.) To establish project feasibility

16 Cross-Border Infrastructure: A Toolkit Environmental Assessment An ongoing process Starts early and continues throughout project cycle Required for all public and private sector projects Required for all project components whether financed by ADB, government or co-financiers

17 Cross-Border Infrastructure: A Toolkit Guiding Principles Avoid, minimize, mitigate and compensate environmental impacts Screen, classify and assess significance of impacts Examine alternatives Design least-cost mitigation measures Achieve environmental standards Categorization based on significance of impact of most sensitive component Location sensitivity Scale, nature, and…

18 Cross-Border Infrastructure: A Toolkit Guiding Principles Categorization … ( continued ) Magnitude availability of cost-effective mitigation measures Classify early (after concept clearance) Ongoing process, category may change In case of major change in scope during implementation, classify change

19 Cross-Border Infrastructure: A Toolkit Process Prepare environmental management plan Mitigation measures Institutional arrangements Monitoring program Budget Disclose information and consult affected people and public Category A required at least twice Category B projects at least once Borrowers responsibility to consult

20 Cross-Border Infrastructure: A Toolkit Process Disclose information… ( continued ) Groups affected by the proposed project and local NGOs Borrower to provide information in form and language(s) accessible to those being consulted Disclose SEIA to public through web, 120 days in advance of Board consideration; Need to make EIA available on request Make environmental monitoring reports publicly available upon submission Monitor and report results

21 Cross-Border Infrastructure: A Toolkit Contents of EMP Before ADB Board Approval Draft EMP Environmental impacts Proposed mitigation measures Monitoring programs Public consultation activities Responsibilities for mitigation and monitoring Initial cost estimate Detailed Engineering Design Final EMP Final EMP broken down into contract level-EMPs Mechanisms for feedback and adjustment Final responsibilities for review, monitoring and reporting Final cost estimates

22 Cross-Border Infrastructure: A Toolkit Involuntary Resettlement

23 Cross-Border Infrastructure: A Toolkit Involuntary Resettlement IR addresses social and economic impacts caused by acquisition of land or fixed assets, change in land use, restriction on access to land IR is to be avoided, where feasible, and minimized If IR unavoidable, compensate affected people at replacement cost of assets and/or through livelihood/ income restoration and social rehabilitation measures IR measures to be designed with time-bound actions, adequate budget, institutional arrangement and monitoring program

24 Cross-Border Infrastructure: A Toolkit Indigenous Peoples

25 Cross-Border Infrastructure: A Toolkit Indigenous Peoples IPs include groups with social or cultural identities distinct from the dominant or mainstream society Interventions should: Achieve reduction of poverty among affected IPs and extend benefits to them Be designed with their informed participation Be equitable and consistent with their needs and aspirations Minimize, and mitigate negative impacts, if unavoidable IP development plan to be prepared if IPs are affected significantly or adversely

26 Cross-Border Infrastructure: A Toolkit Common Features Involves a structured process of screening, assessment, planning and management to address the impacts of projects Starts as soon as potential projects for ADB financing are identified and continues throughout the project cycle Applies to all projects, including private sector operations and to all project components whether financed by ADB, Government or co-financiers Information disclosure and consultation specified in ADBs public communications policy

27 Cross-Border Infrastructure: A Toolkit Common Features ( continued ) Information on environmental, IR and IP issues is made available to affected people before or during consultation with affected people/groups and local NGOs Safeguard reports are made publicly available Information disclosure and public consultation apply to Category A and B projects (three safeguards policies)

28 Cross-Border Infrastructure: A Toolkit Project Classification All projects are classified (ongoing process) Category (A, B, C, FI) based on most sensitive component Significance of impacts Environment: Depends on type, sensitivity, scale and location of the project, the nature and magnitude of potential environmental impacts Involuntary Resettlement: Depends on number of people physically displaced and/or income and productive assets lost Indigenous Peoples: Depends on nature of impacts

29 Cross-Border Infrastructure: A Toolkit Safeguard Documentation Reports requirements depend on significance of impacts (A, B, C) and lending modalities Environment - Environmental Impact Assessment (EIA) Initial Environmental Effects (IEE) Environmental Management Plan (EMP) Involuntary Resettlement - Resettlement Plan (RP) Summary Resettlement Plan (SRP) and/or Resettlement Framework (RF) Indigenous Peoples - Indigenous Peoples Development Plan (IPDP) Indigenous Peoples Development Framework, or Specific Action

30 Cross-Border Infrastructure: A Toolkit Categorization

31 Cross-Border Infrastructure: A Toolkit Role and Responsibility of ADB and the Borrower in Safeguards Preparation and Implementation

32 Cross-Border Infrastructure: A Toolkit Borrower and the ADB: Who Does What? Responsible for implementation of safeguard policies Advises borrower on safeguard requirements Assists borrowers in meeting requirements Monitors implementation of agreed safeguards Capacity development BorrowerADB

33 Cross-Border Infrastructure: A Toolkit Some Final Points Distinction between procedural and substantive compliance Need for continued awareness raising and training Building country level capacity

34 Cross-Border Infrastructure: A Toolkit Loan Documentation Environmental requirements included in loan documentation Government clearance of IEE or EIA if not issued before loan negotiations EA process to be adopted (special studies and mitigation measures) in case of uncertainties in alignments or location of facilities before loan approval

35 Cross-Border Infrastructure: A Toolkit Northern Economic Corridor Project

36 Cross-Border Infrastructure: A Toolkit Basic Information A 228 kilometer road project in Northern Laos connecting Kunming to Chiang Rai 98% of population ethnic minorities Poverty widespread

37 Cross-Border Infrastructure: A Toolkit Complexities: Safeguard Aspects Project was in Lao PDR No GMS framework about cross-border projects Thailands process Weak institutional arrangements in Lao PDR Significant local impacts Significant cross-border impacts with uneven distribution of costs and benefits

38 Cross-Border Infrastructure: A Toolkit Impacts Category A project Passes along Nam Ha protected area An important habitat to at least 37 mammals and 288 bird species, including a number of endangered and threatened species such as wild Asian elephants, tigers, and bears. Project would require in Lao PDR Land acquisition of 122 hectares of mainly rice land 1.7 hectares of residential land, Affecting 2,550 people in 502 families, 543 dwellings, 61 small retail shops, and 133 rice storage bins, all of which would need to be relocated.

39 Cross-Border Infrastructure: A Toolkit Table 1: Logging in Louang Namtha and Bokeo Provinces Louang NamthaBokeo YearPlanned Quota (in m 3 ) Actual Utilization (in m 3 ) Planned Quota (in m 3 ) Actual Utilization (in m 3 ) 1996–19973,000 2, –19983,3002,1723, –19992,3004,1601,0001, –20002, –20012,3002, Source: Ministry of Agriculture and Forests, Lao PDR

40 Cross-Border Infrastructure: A Toolkit Summary Environmental Matrix (See Appendix 1 of SEIA)

41 Cross-Border Infrastructure: A Toolkit Summary Resettlement Matrix

42 Cross-Border Infrastructure: A Toolkit Type of LossEntitled personsCompensation DwellingsRegistered taxpayer or occupant identified during survey Full replacement cost so as to enable affected persons to have a dwelling of the same size and standard. Residential landRegistered taxpayer or occupant identified during survey Replacement land as a priority or sufficient cash at full replacement cost at current market value. Expenses of residential relocation Registered taxpayer or occupant identified during survey Lump sum payment sufficient to cover all relocation costs Rice storage binsOwner identified during survey Lump sum payment sufficient to cover all relocation costs Small retail shopsOwner identified during survey Lump sum payment sufficient to cover all relocation costs Agricultural landOwner or person with use rights identified during survey Replacement land of comparable yield Source: Draft Resettlement Plan.

43 Cross-Border Infrastructure: A Toolkit Type of LossEntitled personsCompensation Crops and treesOwner or person with customary use rights Full compensation of anticipated harvest at market value Common property resources Community losing the resources (a) Restoration of affected community buildings and structures to at least previous condition; (b) Replacement in areas identified in consultation with affected communities and relevant authorities (c) Full compensation for loss of income. Temporary impact during construction Owner or person with use rights identified during survey (a) Extreme care by contractors to avoid damaging property. (b) Where damage does occur, the contractor will be required to pay compensation immediately to affected families, groups, communities, or government agencies. (c) Damaged property will be restored immediately to its former condition. Source: Draft Resettlement Plan.

44 Cross-Border Infrastructure: A Toolkit Participative Process Had to get multi-country agreement between four parties (Governments of Lao PDR, Thailand and PRC; and ADB) Working groups meetings Series of meetings on project design, alignment, environmental costs, and investments for mitigation Standards to follow PRC agreed to meet Lao PDR standards ADB had to ensure that its policies were met by Lao PDR Instruments used Loan documents Capacity building Third party monitoring

45 Cross-Border Infrastructure: A Toolkit Participative Process Environment Management. The Government will ensure that the approved SEIA will be implemented for the project road irrespective of contractual and financing arrangements. The Government will inform the bilateral financing partners of its safeguard obligations on ADB's loans and incorporate these aspects in bilateral loan agreements. Environment impacts of the Project will be minimized through the appropriate mitigative measures recommended in the SEIA. The Government will ensure that appropriate prohibitions are built into the contract documents for the contractors' work financed under loans from the governments of Thailand and the PRC so that negative environmental and social impacts are mitigated during construction.

46 Cross-Border Infrastructure: A Toolkit Participative Process The SEIA will be attached to the bidding documents and appropriate clauses inserted into the contract documents for all sections of the project road. In such cases where contracting is carried out directly by the financiers, loan documents will clearly specify these requirements. Within 6 months of loan effectiveness, Department of Roads will strengthen the capabilities of the Environment and Social Division in social analysis, particularly to monitor social impacts of road projects. Additional staff resources will be provided in areas of social development issues.

47 Cross-Border Infrastructure: A Toolkit Key Messages The environment can be a real challenge and barrier to economic growth and poverty reduction in the region. Integrating these concerns at the planning stage can be the best solution; Need to address cross-border environmental and social (positive and negative) impacts; Policy harmonization is necessary to set acceptable standards of environmental considerations across countries.


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