1. Introduction to World Bank Safeguard Policies and Project Preparation

2. Objective of this presentation
Introduce World Bank Safeguard Policies (focus on management of Environmental and Social Impacts)
Review required actions for the National Electrification Project

3. Key messages Safeguards exist to avoid harm and do good
Safeguards are a legal obligation for the borrowing Government
The World Bank will help the Government prepare and apply safeguards

4. Why safeguards? Do no harm Do good
Protect people and environment from adverse impacts
Reduce/manage risk
Do good
Enhance social equity and promote sustainability
Reflect global values and development objectives
Can make or break a project’s success
Safeguards policies set procedures and standards to review and prevent or manage (potential) environmental and social project risks
Safeguards policies reflect core organizational values and development objectives including:
Sustainability, transparency, fairness, accountability, governance, informed decision making, rights, participation and meaningful consultation
Reduce and manage risk for the Client and for the WB
Respond to a world-wide constituency

5. Safeguards complement other requirements
Government of Myanmar
 Laws and regulations on environment and social issues
World Bank Group
World Bank
International Finance Corporation (IFC)
 Safeguard Policies for public borrowers
 Performance Standards for private borrowers
Governments have their own laws and regulations for social and environmental impacts.
In addition to these, safeguard policies apply to public recipients of World Bank Group finance.
Performance standards apply to private borrowers of World Bank Group finance.
If the Government has systems in place that are equivalent to the World Bank safeguards, then we can use these. However, for Myanmar, this is not the case.

6. Safeguards Policies - Overarching Concepts
Avoid negative impacts where possible; otherwise minimize, reduce, mitigate, compensate
Identify and support environmental & social benefits
Match response to level of risk
Requires consultation, monitoring and disclosure
Strengthen borrower/implementer capacity

7. A project may not trigger all safeguard policies
During project concept stage, World Bank determines which Safeguard Policies are triggered, according to specific criteria
Integrated Safeguards Data Sheet (ISDS) explains justification for triggering or not triggering each policy
Triggered policies can be revised during project appraisal stage
If a safeguard is triggered during project implementation, the project must be re-structured and re-approved
Draft ESIA: Review & public consultation. May require several iterations before finalized. ADVANCED draft acceptable to WB is sufficient for project Appraisal. Final version before negotiations.
Government “EIA Decision” vs. WB Acceptance: Requirements may differ. Both are needed (if law requires EIA). Sequential? Parallel? Iterative?

8. The World Bank has 10 Safeguard Policies#
Policy name
Environmental
4.01
Environmental Assessment
4.04
Natural Habitats
4.36
Forests
4.09
Pest Management
4.11
Physical Cultural Resources
4.37
Safety of Dams
Social
4.10
Indigenous Peoples
4.12
Involuntary Resettlement
Legal
7.50
Projects on International Waterways
7.60
Projects in Disputed Areas
Which do you think apply to the National Electrification project?

9. Which safeguard policies does the NEP trigger?#
Policy name
Triggered for NEP?*
Environmental
4.01
Environmental Assessment
YES
4.04
Natural Habitats ?
4.36
Forests
NO (?)
4.09
Pest Management
4.11
Physical Cultural Resources
4.37
Safety of Dams NO
Social
4.10
Indigenous Peoples
4.12
Involuntary Resettlement
YES (?)
Legal
7.50
Projects on International Waterways
7.60
Projects in Disputed Areas
In addition to these 10 safeguards, other policies apply, such as "Access to Information".
*Triggered at concept stage

10. Environmental Assessment (# 4.01)
Triggered for most investment projects
‘Umbrella’ policy: subsumes elements of others
Screens and classifies projects based on risks and loan type
A (high risk), B (medium risk), C (low risk)
FI (financial intermediary, with some risk)
Defines scope of issues (environmental and social) and applicable instruments
Scoping: define project area of influence, likely issues, risk levels. Basis for ESIA Terms of Reference. Stakeholder participation essential for complex/ high risk projects
Data collection & Analysis: TOR should be clear on level of effort (field work, modeling, etc.). Data provided should lead to conclusions (avoid “data dump”). Analysis of alternatives.
Develop mitigation/monitoring plan for preferred alternative: Follow the “mitigation hierarchy” (avoidance first choice; compensation last choice).
Draft ESIA: Review & public consultation. May require several iterations before finalized. ADVANCED draft acceptable to WB is sufficient for project Appraisal. Final version before negotiations.
Government “EIA Decision” vs. WB Acceptance: Requirements may differ. Both are needed (if law requires EIA). Sequential? Parallel? Iterative?

11. Physical and cultural resources (# 4.11)

12. Involuntary Resettlement (# 4.12)
Aims to avoid or minimize the taking of land or assets
Explore all viable alternative project designs
If land acquisition is unavoidable, policy aims to ensure that affected people are able to improve or at least maintain their livelihoods / level of income
e.g. through compensation at replacement value

13. Indigenous Peoples (Ethnic Minorities) (# 4.10)
Ensure culturally appropriate benefits
Can lead to “Indigenous Peoples Planning Framework”
Screen for presence of ethnic minorities
Requires free, prior and informed consultations leading to broad community support
May further lead to an Indigenous Peoples Plan, or similar instrument

14. World Bank project funding cycle
Before we look at the process for developing safeguards, here is an overview of the World Bank project funding cycle. Safeguards come into play at all stages from identification through to evaluation.

15. Safeguard development process
Action
Responsibility
Project stage 1.
Screen project
World Bank
Concept (Oct 2014) 2.
Prepare safeguard instrument/s
Government (with WB support)
Project preparation (Nov 2014-Mar 2015) 3.
Consult on instrument/s
Government (with WG support) 4.
Approve instrument/s
Government and WB
Approval (Apr 2015) 5.
Implement instrument/s
Government, and all contractors / agencies
Project implementation ( ) 6.
Report on implementation 7.
Supervise implementation WB 8.
Build Government capacity
As needed throughout
The Government of Myanmar (with subsequently implementing agencies, contractors, etc) is responsible for implementing the World Bank’s safeguards policies
The World Bank supports the Government of Myanmar to prepare for and implement these policies
Draft ESMF (English and Burmese) should be disclosed and invitations for public consultations sent out at least 2 weeks prior to consultations
MOEP/MLFRD Submit revised ESMF (addressing recommendations from consultations) for WB review and approval prior to WB appraisal
Public Disclosure and Consultations of Draft ESMF (prior to WB appraisal). MOEP/MLFRD puts draft of documents on website, and sends to stakeholders
WB / Consultants will assist MOEP in undertaken the national/regional consultations on the draft ESMF

16. Institutional arrangements

17. Managing Safeguards in the NEP
NEP exact locations and designs are unknown at project preparation stage  Use an Environmental and Social Management Framework (ESMF)
ESMF:
Legal commitment
Applies to all sub-projects
Defines procedure for Government to prepare and apply site-specific safeguard plans during project
ESMF is a legal commitment
Institutional arrangements and procedures ensure compliance throughout project implementation:
Screen and review sub-projects
Environmental and social assessments comply with Myanmar and World Bank requirements
Action Plans to Prevent, minimize or mitigate possible site-specific impacts during implementation
Monitor safeguards implementation

18. ESMF Procedures for Project Implementation
1. Screen and Scope all sub-projects
Eliminate sub-projects that are ineligible for financing. Identify potential risks.
2. Prepare Terms of Reference for safeguards review studies and preparation of plans as needed (Environmental Impact Assessment; Environmental and Social Management Plan; Resettlement Action Plans; Indigenous Peoples Plan (based on consultations and social assessment; Physical Cultural Resources Plan)
3. Prepare required Safeguards Work and consult
4. Implement Safeguards Plans
5. Monitor Safeguards Plans implementation

19. Inputs to ESMF Poverty and Social Impact Assessment
Social Assessment (ethnic minorities)
Assessment of potential environmental impacts
Consultations

20. Key ESMF Elements
Guidance on sub-project screening and further safeguards work; e.g.
Environment Impact Assessment / consultations
Environmental and Social Management Plan
Environmental Standards and Guidelines
Resettlement Planning Framework
Indigenous Peoples Planning Framework

21. Questions for discussion
What safeguard arrangements are needed to match different finance models (private vs public)?
What do Government and implementing agencies/contractors need to be ready to implement safeguards?
How can World Bank best provide support?
For example, what languages if any, other than Myanmar language?