1. WORLD BANK SAFEGUARD POLICIES
TRAINING ON
WORLD BANK SAFEGUARD POLICIES
Introduction and Overview
Agi Kiss
WB Safeguards Training Workshop
Almaty, December 2012

2. Presentation Outline Overview of the WB Safeguard Policies (10+1)
Roles and Responsibilities of WB, FI/PIU, project sponsor/implementer
World Bank SG policies in relation to national laws, IFC/MIGA Performance Standards

3. How should we approach the SG policies
How should we approach the SG policies? Not as “black magic”, something to be feared. Also can’t think of SG compliance as “child’s play” – but as a worthwhile professional undertaking which provides rewards in the form of a high quality product.

4. Who are the Stakeholders?
Borrowers
Private Investors
WB Management
WB Board
International Financial Institutions
Media
Civil
Society
Project Beneficiaries
NGOs
Affected Persons

5. Overview of Safeguard Policies
(Details in Separate Presentation)
Overall scope and principles
All SG Policies: objectives and triggers
OP 4.01 OP
7.05
Closer Look
This part of the presentation will start with setting out principles which apply to all the SG policies, then give very brief summary of the objectives, triggers and required documentation for all the SG policies, and then provide some more in-depth information on a few policies which are the most commonly applied and/or most often create confusion or raise issues
OP 4.04
OP 4.37
OP 4.12

6. Cross-cutting Principles of SG Policies
OBJECTIVES:
Avoid negative impacts where possible; otherwise minimize, reduce, mitigate, compensate (in that order)
Identify and support sustainable approaches / env & social benefits
Match level of review, mitigation and oversight to level of risk and impacts
Inform the public and enable people to participate in decisions which effect them
Integrate environmental and social issues into project identification, design and implementation
Strengthen Borrower / implementer capacity
Application:
to all WB-financed investment operations (including TA)
To all activities under any project receiving funding from WB, even if financed from another source

7. WB “Safeguard” Policies (10+1)
Social Policies
OP 4.12 Involuntary Resettlement
OP 4.10 Indigenous Peoples
Environmental Policies
OP 4.01 Environmental Assessment
OP 4.04 Natural Habitats
OP 4.09 Pest Management
OP 4.11 Physical Cultural Resources
OP 4.36 Forests
OP 4.37 Safety of Dams
Legal Policies
OP 7.50 International Waterways
OP 7.60 Disputed Areas
+ Access to Information Policy
- Use of Country Systems for Safeguard Policies......
The ‘safeguard policies’ are instruments applied by the Bank in its operations to protect the interest of the beneficiaries, clients, shareholders and the Bank. They are linked to one another, and taken collectively, they provide a comprehensive framework for avoiding negative impact on the environment and the livelihood of people.
Some environmental and social issues of concern are not covered by specific Safeguard OPs (e.g.: climate change, gender, child labor, poverty alleviation…). Where relevant these should be covered in the ESIA (OP 4.01)

8. Safeguard Operational Policies: Objectives, Triggers, Documentation
OP 4.01 (Environmental Assessment): Ensure potential negative env/social issues are identified, understood and avoided or mitigated ; support environmentally sustainable options
Triggers: direct or indirect physical investments (civil works; provision of goods with “issues”); TA linked to physical investments; any other OP triggered
OP 4.04 (Natural Habitats): Maintain biodiversity and natural ecosystems ; involve local communities in management of Protected Areas and biodiversity
Triggers: investments in, near or likely to affect natural ecosystems (terrestrial, riverine, coastal, marine, aerial); Protected Areas
Documentation: SEA, E(S)IA / E(S)A, EMF, EMP, Environmental Guidelines, Environmental Audit, etc.
SEA = Strategic Environmental Assessment; E(S)IA = Environmental (and Social) Impact Assessment; E(S)A = Environmental (and Social); Assessment; EMF = Environmental Management Framework
Documentation: Incorporated in EA/EMP

9. OP 4.09 (Pest Management): Reduce human & environment exposure to hazardous pesticides; promote Integrated Pest Management
Triggers: financing purchase of pesticides; investments likely to introduce or increase pesticide use (expansion or diversification of agricultural production)
Documentation: Pest Management Plan (or section in EA)
OP 4.10 (Indigenous Peoples): Protect livelihoods and cultures, support economic and social integration on peoples’ own preferred terms
Triggers: investment within an area occupied or used for economic purposes (presently or traditionally) by a group which falls within definition of IP (in ECA, only northern Russia)
Document: Indigenous Peoples Plan

10. OP 4.11 (Physical Cultural Resources): Preserve cultural heritage
Triggers: civil works on historical buildings or in historic areas or areas with rich cultural history)
OP 4.12 (Involuntary Resettlement): Protect people from economic & social impacts of losing land or access to land- based resources
Triggers: potentially any case where land is required for investment (privately owned or publicly owned). Residence or economic use; legal title or not. New construction: presume triggered unless clearly demonstrated otherwise.
Documentation: Physical Cultural Protection Plan or section in EA/EMP
Documentation: Resettlement (or Land Acquisition) Policy Framework; Resettlement (or LA) Action Plan

11. OP 4.36 (Forestry): Promote sustainable forest management; natural forest protection; rural poverty reduction
Triggers: investments in/near/upstream of forest areas (esp. natural forest) which are likely to result in forest loss/encroachment; enterprises involving wood or non-timber forest products
OP 4.37 (Safety of dams): Protect people and investments from dam failure
Triggers: dam construction/rehabilitation; water or power projects dependent on dams
Documentation: section in EA/EMP
Documentation: Dam safety analysis, emergency plan, etc.

12. Trigger: all operations
OP 7.50 (International Waters): riparian States are notified of and have opportunity to question/comment on projects affecting shared water bodies
Triggers: ANY investment involving water abstraction, release of water or materials into water, or hydrological impacts (regardless of scale) , which is connected with a water body shared by 2 or more countries (aquifers, open seas excluded; exception available for rehabilitation of existing schemes)
OP 7.60 (Disputed Areas): Ensure disputing States agree to proposed project
Trigger: investments in area which is under dispute between countries (e.g. disagreement on precise border)
Access to Information: Transparency, stakeholder participation, better projects
Trigger: all operations
Documentation: notification letter (or exemption memo)
Documentation: legal agreements
Documentation: Process described and meeting minutes included in EIA

13. Roles and Responsibilities: Direct Investment Projects
World Bank
Screens and Sets Project EA Category
Advises Borrower on the Bank’s EA requirements
Reviews and gives “No Objection” for EA reports (Due Diligence instruments)
Makes report available in Info shop
Supervises implementation of EA/EMP
Makes mutually agreeable changes during implementation
Borrower
Prepares and Implements EA/EMP/EMF in accordance with national laws and WB OPs
Consults project-affected groups and local NGOs
Discloses draft/final documents in country
Responds to Bank and public
Monitors implementation of EMP
Ensures compliance under national laws

14. Roles & Responsibilities: “Indirect investment” Projects
World Bank
Assigns SG Category to the overall Project (FI, A, B, C)
Assesses FI capacity to implement SG
Advises FI on SGs and on Framework Documents; gives No Objection to Framework Documents
Discloses all SG documents in Infoshop and sends to Board as required
Prior and/or Post-review of EAs/EMPs/RAPs
Supervises implementation together with FI
Contractual relationship
FI (or other Intermediary)
Prepares Framework Documents for the overall Project (Environmental Management Framework; Resettlement Policy Framework)
Disclosure and public consultation on Framework Documents
Screens, categorizes, evaluates, approves and monitors Sub-projects based on Framework documents (including ensuring preparation of acceptable EAs/EMPs; RAPs*)
(Sub) Borrower
Prepares EA/EMP, RAP* based on guidance from FI
Disclosure & public consultation of EMP/RAP
Implementation of EMP/RAP* (including selection of contractors; incorporating EMP in contracts; ensuring compliance)
*Preparation and/or implementation of RAP
might be responsibility of a separate Government agency

15. WB Safeguard Policies and National Legislation/Regulations
Principles:
Where requirements or standards differ, the more stringent requirements prevail (might be national, might be WB)
Where WB policies and national laws conflict, WB policies prevail for projects with WB financing (even for project components financed by Govt. or others)
Legal basis: Loan Agreement with WB has standing of international treaty, superseding national law
Result: ideally national policy reform, but may be “ring-fencing” of project (can lead to situation of different standards applied in different cases)
Some flexibility in implementation as long as consistent with fundamental principles of Safeguard policies

16. Common Gaps and Conflicts Between OP 4.01 and National Laws
Screening methodology and outcomes (when is EIA required)
Alternative EA documents (e.g. EMP)
Contents of EIA
One integrated EIA vs. separate EIAs for different project components
Timing (at what stage of project preparation)
Consultation (timing, frequency, scope, reporting)
Include in Turkey – whether EIA is for integrated project, or different elements treated piecemeal
Separate presentation to come

17. Integration of WB EA requirements with Typical ECA National Procedures
NATIONAL LEGISLATION
World Bank
Identification/
Preparation
Pre/Feasibility Study
Preliminary EIA
incl. mitigation measures
EA/EMP
Appraisal
Disconnect between WB requirement for EA prior to Appraisal of WB operation (often done before investments fully identified much less designed), vs. most national laws requiring EA at detailed design stage of investment. Oft leads to preparation of a separate “WB EA”
Implementation
Detail Design
Bidding Docs
Final EIA
Env. Permit
(Monitoring)
Construction Permit