Presentation on theme: "Introduction to World Bank Safeguard Policies and Project Preparation"— Presentation transcript:
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 GovernmentThe World Bank will help the Government prepare and apply safeguards
4 Why safeguards? Do no harm Do good Protect people and environment from adverse impactsReduce/manage riskDo goodEnhance social equity and promote sustainabilityReflect global values and development objectivesCan make or break a project’s successSafeguards policies set procedures and standards to review and prevent or manage (potential) environmental and social project risksSafeguards policies reflect core organizational values and development objectives including:Sustainability, transparency, fairness, accountability, governance, informed decision making, rights, participation and meaningful consultationReduce and manage risk for the Client and for the WBRespond to a world-wide constituency
5 Safeguards complement other requirements Government of Myanmar Laws and regulations on environment and social issuesWorld Bank GroupWorld BankInternational Finance Corporation (IFC) Safeguard Policies for public borrowers Performance Standards for private borrowersGovernments 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, compensateIdentify and support environmental & social benefitsMatch response to level of riskRequires consultation, monitoring and disclosureStrengthen 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 criteriaIntegrated Safeguards Data Sheet (ISDS) explains justification for triggering or not triggering each policyTriggered policies can be revised during project appraisal stageIf a safeguard is triggered during project implementation, the project must be re-structured and re-approvedDraft 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 nameEnvironmental4.01Environmental Assessment4.04Natural Habitats4.36Forests4.09Pest Management4.11Physical Cultural Resources4.37Safety of DamsSocial4.10Indigenous Peoples4.12Involuntary ResettlementLegal7.50Projects on International Waterways7.60Projects in Disputed AreasWhich do you think apply to the National Electrification project?
9 Which safeguard policies does the NEP trigger? #Policy nameTriggered for NEP?*Environmental4.01Environmental AssessmentYES4.04Natural Habitats?4.36ForestsNO (?)4.09Pest Management4.11Physical Cultural Resources4.37Safety of DamsNOSocial4.10Indigenous Peoples4.12Involuntary ResettlementYES (?)Legal7.50Projects on International Waterways7.60Projects in Disputed AreasIn 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 othersScreens and classifies projects based on risks and loan typeA (high risk), B (medium risk), C (low risk)FI (financial intermediary, with some risk)Defines scope of issues (environmental and social) and applicable instrumentsScoping: define project area of influence, likely issues, risk levels. Basis for ESIA Terms of Reference. Stakeholder participation essential for complex/ high risk projectsData 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?
12 Involuntary Resettlement (# 4.12) Aims to avoid or minimize the taking of land or assetsExplore all viable alternative project designsIf land acquisition is unavoidable, policy aims to ensure that affected people are able to improve or at least maintain their livelihoods / level of incomee.g. through compensation at replacement value
13 Indigenous Peoples (Ethnic Minorities) (# 4.10) Ensure culturally appropriate benefitsCan lead to “Indigenous Peoples Planning Framework”Screen for presence of ethnic minoritiesRequires free, prior and informed consultations leading to broad community supportMay 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 ActionResponsibilityProject stage1.Screen projectWorld BankConcept (Oct 2014)2.Prepare safeguard instrument/sGovernment (with WB support)Project preparation (Nov 2014-Mar 2015)3.Consult on instrument/sGovernment (with WG support)4.Approve instrument/sGovernment and WBApproval (Apr 2015)5.Implement instrument/sGovernment, and all contractors / agenciesProject implementation ( )6.Report on implementation7.Supervise implementationWB8.Build Government capacityAs needed throughoutThe Government of Myanmar (with subsequently implementing agencies, contractors, etc) is responsible for implementing the World Bank’s safeguards policiesThe World Bank supports the Government of Myanmar to prepare for and implement these policiesDraft ESMF (English and Burmese) should be disclosed and invitations for public consultations sent out at least 2 weeks prior to consultationsMOEP/MLFRD Submit revised ESMF (addressing recommendations from consultations) for WB review and approval prior to WB appraisalPublic Disclosure and Consultations of Draft ESMF (prior to WB appraisal). MOEP/MLFRD puts draft of documents on website, and sends to stakeholdersWB / Consultants will assist MOEP in undertaken the national/regional consultations on the draft ESMF
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 commitmentApplies to all sub-projectsDefines procedure for Government to prepare and apply site-specific safeguard plans during projectESMF is a legal commitmentInstitutional arrangements and procedures ensure compliance throughout project implementation:Screen and review sub-projectsEnvironmental and social assessments comply with Myanmar and World Bank requirementsAction Plans to Prevent, minimize or mitigate possible site-specific impacts during implementationMonitor safeguards implementation
18 ESMF Procedures for Project Implementation 1. Screen and Scope all sub-projectsEliminate 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 consult4. Implement Safeguards Plans5. Monitor Safeguards Plans implementation
19 Inputs to ESMF Poverty and Social Impact Assessment Social Assessment (ethnic minorities)Assessment of potential environmental impactsConsultations
20 Key ESMF ElementsGuidance on sub-project screening and further safeguards work; e.g.Environment Impact Assessment / consultationsEnvironmental and Social Management PlanEnvironmental Standards and GuidelinesResettlement Planning FrameworkIndigenous 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?