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Republic of KosovoDrenas’ Industrial Zone Infrastructure Project
Technical, and operational, environmental and social Due Diligence – Terms of Reference
1. BACKGROUND
The Ministry of Trade and Industry (“MTI”) of Kosovo has approached the European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) with a request to finance an extension of an existing industrial zone (“IZ”) located in the Municipality of Drenas.
As a result, the Bank is considering a sovereign loan of up to EUR 10 million financing investments in main municipal infrastructure, including: construction of roads in the zone and their connection to the main road, construction of a water supply network within the zone, construction of electrical grids within the zone and their connection with the main existing electrical grid of the zone, construction of a gas network, construction of a sewage system for treatment of waste and industrial waters and construction of a wastewater treatment plant (the “Project”).
The main objective of the new IZ is to exclusively assist industrial and manufacturing companies in expanding their operations and to become more competitive by providing land and infrastructure. The IZ will address the main constraints faced by local companies to new investments and expansion of existing ones: land ownership, expensive land purchase price and lack of infrastructure.
Currently, there are six industrial zones in Kosovo. Drenas IZ was established in 2010 and was the first in the county. Its occupancy rate stands at above 90 per cent, with 36 businesses, only two of them being foreign companies. The lessor provides the available physical infrastructure for 99 years, while the tenants are obliged to construct the facility based on their own needs and subject to local legal requirements. In the scope of this Project, it is envisaged that 50 per cent of the plots will be allocated via an auction model with minimum base level being the current tariff, while the remaining half will be allocated at the current tariff level based on specific eligibility criteria and scoring methodology.
The current tariff system is heavily subsidised and the leaseholders are not charged 100 per cent of the rent per m2 until year 11 since the start of the each individual lease.
The Kosovo Investment and Enterprise Support Agency (“KIESA”) is an agency under the MTI which is responsible for the protection and promotion of investments as well as for the development of policies related to the establishment and development of economic zones in Kosovo.
A separate consultant mobilised by the Bank, will assist MTI in assessing the most appropriate implementing agency: i) MTI sets up a Special Purpose Vehicle (“SPV”), ii) KIESA operates the zone as it is currently the case or iii) MTI/KIESA select a private facility management company under competitive tender to manage the new IZ. 2. OBJECTIVES
The Bank requires the services of a consultant (the “Consultant”) to assist with the technical, financial and operational, environmental and social due diligence for the proposed Project prior to EBRD making its financing decision. The specific tasks of the Consultant are to:
Validate the efficacy of the solution proposed: Perform technical due diligence on the Project to be financed by EBRD including cost estimates, financial and economic internal rates of return and justification of the proposed investments;
Prepare a cost-benefit analysis of the Project; Carry out an Environmental and Social (“E&S”) gap analysis of the Project and prepare an
Environmental and Social Action Plan (“ESAP”), and ensure that the prepared Stakeholder
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Engagement Plan (“SEP”) for the Project complies with EBRD’s Environmental and Social Policy (“ESP”) requirements;
Prepare and update the implementation arrangements including determination of an efficient implementation strategy for the Project;
Prepare the design of the industrial zone, including water supply, road infrastructure, gas supply, sewage system, etc.
Identify synergies in terms of infrastructure with regards to the existing IZ; Preparation of financial projections of the IZ; Identification of potential demand and overall dimension of the IZ; Develop a comprehensive marketing and promotion plan for attracting potential investors to the
IZ; Develop a tariff methodology which is cost reflective to achieve capex and opex recovery from
tenants; Determine an eligibility criteria suitable for the plots to be auctioned via an auction model; Explore the possibility of setting up a vocational training centre in the new IZ; The Consultant will liaise with the consultant mobilised to identify the most suitable
implementing agency; Carry out a survey to private sector companies and based on the survey and the needs identified,
develop the IZ’s strategy and objective.
3. SCOPE OF WORK
Task 1: Benchmarking
Within this task, the Consultant will: Carry out a market studies on the types of industrial zones, using regional and international
examples, Identify international best practices with regards to industrial zones.
Task 2: Legal and regulatory review
The Consultant will: Assess the legal framework for industrial zones in Kosovo; Carry out an institutional and legal gap analysis; Key stakeholder mapping – description of the stakeholders involved in the public and private
sector on all dimensions – the IZ framework, wastewater management, water management, solid waste, power, etc.
Assessment of the legal framework for the different sectors present in the IZ – solid waste, water management, wastewater management, power, etc.
Identify fiscal and in-kind incentives that could be applied to the IZ in order to attract more investors, if deemed appropriate.
Task 3: Governance model/Institutional assessment
The Consultant will: Identify options and recommendations with regards to the operation and management structure of
the IZ; Determine the governance requirements (roles, strategic vision, structure at national, local and
operational levels)
Task 4: Technical Due Diligence
The Bank seeks to determine the technical soundness of the proposed Project. For that purpose, the Consultant will:
An assessment of the infrastructure already available in the existing IZ of Drenas and in the area and how it can be used for the new IZ. -
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Assessment of the requirements for new infrastructure in the development of the site of the IZ; Design of the infrastructure and utilities in the IZ - including roads, power, water, sewage
treatment plant, solid waste facility, parking areas, etc; Detailed budget to service the industrial zone to completion; Identification of potential demand by assessing private sector needs in terms of investments and
infrastructure through a survey to a sample of 50 private sector companies present in Kosovo. The sampled companies covered by the survey should meet the following minimum requirements:
Being registered as formal businesses, Operating in the manufacturing, construction, tourism and services sectors Counting a minimum of 5 permanent employees.
Determine an eligibility criteria suitable for the plots to be auctioned via an auction model; Explore the possibility/viability of setting up a vocational training centre in the new IZ. Explore the possibility/viability of setting up a facility to treat hazardous waste, not only from the
IZ but from other sources in the region.
Task 5: Financial and Economic Analysis
The Consultant will prepare financial and economic analysis of the proposed investment, which should include the following:
Calculation of the Economic Internal Rate of Return (“EIRR”) of the Project including assumptions and justifications;
Operational projections (including demand projections) clearly showing how the IZ’s operations will develop in future.
A detailed review of cost estimate for the complete Project, based on design and current market conditions.
Develop a tariff methodology which is cost reflecting to achieve capex and opex recovery from tenants;
Analysis of the pricing of zone services; Analysis of financial viability of the zone and a sensitivity analysis of the zone’s viability with
regard to different levels of tariff subsidies; Identify any potential additional revenue streams to reinforce the financial sustainability of the
IZ.
Task 6: Environmental and Social Appraisal
Under Task 5, the Consultant will conduct an environmental appraisal in line with the detailed scope of work and using templates provided under Annex 1, Appendix 2.
Task 7: Development of a comprehensive marketing and promotion plan for attracting potential investors to the IZ that will ensure a high level of occupancy within the three years of operation
4. REPORTING AND DELIVERABLES
The overall duration of this assignment will be 5 weeks. The Consultant will report to the Bank whilst liaising with representatives of the Company. The Consultant shall continuously report to the Bank’s Operation Leader, Laura Pedrejon ([email protected]), Environmental Specialist, Kate Guscott ([email protected]), Social Specialist, Freddy Shaoul ([email protected])based in London and Bekim Muaremi ([email protected]) based in Pristina on all aspects of the assignment.
The Company will: provide the Consultant with working space, necessary furniture and telephone connections. designate senior officials to be the primary contact persons with specific responsibility for
assisting the Consultant and co-ordinating activities.
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make available all of their records, plans, reports, designs and other documents as appropriate, but it will be the responsibility of the Consultant to translate these documents, if necessary.
provide access to all of their facilities and employees for questioning or assistance relative to an understanding of the functioning of system facilities.
The Consultant will: be responsible for paying for all international telephone connections, office supplies, external
printing. pay for all local transportation required by the Consultant’s staff throughout the duration of the
assignment. be responsible for providing suitably qualified interpreters/translators to work with their staff.
The Consultant shall produce in the course of the assignment the following reports for each Company individually:
Inception Report: Within two weeks of the site visit, the Consultant shall present to the Bank an Inception Report presenting the initial findings, with an emphasis on findings having an impact on the time schedule and factors affecting these Terms of Reference. The Bank will provide comments on the inception report to the Consultant. The Consultant will submit the electronic copy of the Inception Report in Albanian and English (no hard copies needed).
Draft Final Report: Within six weeks of the site visit , the Consultant will submit a draft Final Report. This shall be covering in detail all points specified above under Section 3, Scope of Work including a Technical Report, a Financial and Economic analysis, a Legal and Regulatory report, a Marketing Plan and an ESDD report: an environmental and social audit report, an environmental and social analysis report, PR compliance matrix, draft SEP, draft LALRF and the resulting ESAP for the Company. ESDD report will also include a 3-5 pages non-technical Executive Summary of the key results and outcomes of the E&S due diligence. The Consultant shall distribute the draft Final Report in Albanian and English to the Bank for comments and shall organise a meeting with all parties within two weeks after distribution of the Albanian version of the report. The Consultant will submit one hard copy of the Draft Final Report in Albanian and English, as well as the electronic copy.
Final Report: Within one week after this meeting the Consultant shall submit the Final Report where all the comments will be elaborated with a project presentation, which shall provide summary information on the Project. The Consultant will submit four copies of all reports in Albanian and English are required (two per each language); both versions shall also be provided in electronic-readable format. Supporting data in the Albanian language in the appendices need not be translated for English versions of the documents.
Project Profile
The Consultant will produce a 2-page “Project Brief” outlining the Project background, description, context and outcomes of the assignment, to be used by the Bank in its reporting to other stakeholders internally and externally. An example Project Brief will be provided to the Consultant at the start of the assignment.
5. CONSULTANT’S PROFILE
The Consultant will be responsible for the mobilisation of the right mix of qualified foreign and local experts, as required, for the different tasks outlined above. Key experts will preferably have at least 10 years’ experience in the activity which they are proposed for in a similar position including industrial zones projects. Since most documentation is in Albanian, the team should include sufficient Albanian speaking experts notably the local coordinator and other experts and/or support experts. It is the responsibility of the Consultant to provide any translation and interpretation as needed for communication with stakeholders including meetings with the Company and the City.
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The Consultant’s team will demonstrate extensive experience gained in similar projects, preferably in Albania or in the region. The following experts are considered necessary for successful implementation of this assignment:
Key experts:
(i) Project Manager/Team Leader - with a university degree or equivalent qualification with a minimum of 15 years professional experience in the field of industrial zones and urban development, with comprehensive experience of similar assignments in the region. He/she should demonstrate management and administration experience, including experience with procedures of international financing agencies (preferably EBRD procedures).
(ii) Investment promotion specialist – experience in supporting promotion of/attracting domestic and foreign investment
(iii) Infrastructure finance specialist – past experience in conducting feasibility studies for infrastructure projects, including industrial zones.
(iv) Physical Infrastructure and Land development specialist – experience in industrial zone, urban development and infrastructure planning (including energy, water supply, transportation and communication)
(v) Legal expert(vi) Environmental, Social and Health & Safety Specialist(s)(vii) Financial Expert
The key experts will be complemented by other team members to cover all tasks specified in these Terms of Reference and the list of key experts is therefore not an exhaustive list of all skills and competencies needed to fulfil this assignment. Consultants should note that one person could have more than one role (e.g., the Team Leader could also be a specialist) and one role (e.g. ESD specialist) could be filled by more than one person.
It is considered beneficial if specialists have proven experience working with EBRD or other IFIs on similar assignments, especially in the area of E&S.
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ANNEX 1 - ENVIRONMENTAL AND SOCIAL APPRAISAL
1. Applicable Requirements
The E&S Assessment is to be carried out in accordance with: Applicable local, national and regional requirements, including those related with environmental
and social impact assessments; The EBRD’s ESP (2014) (and the incorporated Performance Requirements (PRs)) and relevant
European Union (EU) requirements (including, but not limited to, the EU EIA Directive and IE Directive);
Relevant international conventions and protocols relating to environmental and social issues, as transposed into national legislation
EBRD Strategy for the Promotion of Gender Equality EBRD Economic Inclusion Strategy
2. Objectives of the Assignment
The objective of the Assignment is to identify and assess any potentially significant future adverse environmental and social impacts associated with the proposed Project, assess compliance with applicable laws and the EBRD ESP and PRs, determine the measures needed to prevent or minimise and mitigate the adverse impacts, and identify potential environmental and social opportunities, including those that would improve the environmental and social sustainability of the Project , notably in regards to economic opportunities for the local population.
The assessment process will be commensurate with, and proportional to, the potential risks, aspects and impacts of the Project, and will cover, in an integrated manner, all relevant direct and indirect environmental and social aspects and impacts of the Project, and the relevant stages of the project cycle (e.g. pre-construction, construction, operation, and decommissioning or closure and reinstatement).
The environmental and social assessment will also determine whether complementary studies are required, focusing on specific risks and impacts such as climate change, human rights, health and safety, vulnerable groups and / or gender equality.
The Consultant shall also assess the impact of the investment on men and women in the Project Area. This should cover issues faced in terms of access to employment, entrepreneurship and training and access to services (see 3.2.2).
3. Scope of Work
The Consultant will undertake the following work in accordance with the requirements of the Bank’s ESP (2014):
Identify Project-related environmental and social impacts and risks; Describe and characterise a relevant environmental and social baseline commensurate with the
risks posed by the Project Develop a draft E&S Assessment report to cover the Bank’s requirements (as defined in the
ESP), including a Compliance Summary table with the Banks’ PRs; Prepare a draft Stakeholder Engagement Plan (SEP), draft Environmental and Social Action Plan
(ESAP) and draft Non-Technical Summary (NTS); Identify if any additional studies will be required to cover relevant aspects in greater detail (eg.
biodiversity, resettlement, retrenchment, etc,). Any such work will be commissioned under separate Terms of Reference; and,
Finalise all documentation further to the EBRD’s, other lenders’ (if involved) and the Client’s comments.
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3.1. Task 1 - Review of Available Data and Site Visit
The Consultant will review (but not be limited to) the existing studies and baseline data available from the Company. Data and documentation are in English and Albanian. This list is not exhaustive and the Consultant must be prepared to review, and also request, further documentation that does not appear above.
Following the review of available data, the Consultant will visit the site, to obtain any supplemental information needed to complete the E&S Assessment. Following completion of the data review and site visit the Consultant will deliver a summary of key findings (see below).
3.2. Task 2 - Environmental and Social Assessment
A. Project Description & Identification of Relevant Associated Activities & Operations
The Consultant will prepare a description of the Project including details of any alternatives1 considered for the project and information on neighbouring operations and activities. In accordance with EBRD PR1, paragraph 9, the Consultant will identify:
(i) Any potentially significant environmental and social issues or risks associated with relevant other activities or facilities, which are not part of the Project but which may be directly or indirectly influenced by the Project, exist solely because of the Project or could present a risk to the Project;
(ii) Cumulative impacts of the Project in combination with impacts from other relevant past, present and reasonably foreseeable developments;
(iii) Unplanned but predictable activities enabled by the Project that may occur later or at a different location; and,
(iv) Environmental and social risks associated with the primary supply chains central to the Project’s core operational functions.
B. Analysis of Legal Requirements
The Consultant will identify applicable local, regional and national environmental and social laws and regulatory requirements of the jurisdictions in which the Project operates, including those laws implementing host country obligations under international law. The Consultant will analyse local/national assessment and permitting requirements and the EBRD environmental and social requirements and compare them within a gap analysis in tabular format, presented in the structure of the EBRD PRs. This should include a review of the legislation with a focus on inclusion, especially in regards to any legal restriction (e.g. types of jobs, work permits) preventing women and refugees from accessing employment and services.
The Consultant will review the compliance of the Project with the applicable requirements, together with the status of any material permits or authorisations that are required. For example, if a RAP or LRF etc. are available the Consultant shall review the information on legal requirements to confirm if any gaps exist with the PR5 requirements.
C. Baseline Conditions
The E&S Assessment will include a review of the aspects of the physical, biological and socio-economic environment likely to be affected by the proposed Project. Indicative guidance on the contents of the overall assessment is provided in Annex 1.
The baseline assessment will include consideration of the inter-relationship between the relevant factors, as well as the exposure, vulnerability and resilience of these factors to natural and manmade disaster risks. The Consultant will include an analysis of potential contamination risks affecting soil or
1 Project alternatives to include: Zero (“no project”) alternative, siting and routing alternatives, infrastructure and traffic connection alternatives, design alternatives
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groundwater within or near the Project site which will be completed without intrusive investigations at this stage.
Project Assessment
In accordance with the Bank’s ESP (2014), the Consultant will analyse the potential environmental and social impacts and risks of the Project, as well as opportunities that the Project may provide, including infrastructure development (e.g. water, wastewater, a heat and electricity distribution networks, transportation access) and other associated facilities, for which the EBRD financing is being sought.
The E&S Assessment will include a review of the likely effects of the proposed Project on the physical, biological and socio-economic environment to provide an identification and characterisation of potential E&S impacts, including beneficial (as well as adverse) impacts. This review will be structured to include all relevant stages of the Project’s life, eg. construction, operation and maintenance, closure and decommissioning, and residual E&S impacts. The level of analysis and reporting will be commensurate with the risk magnitude of the identified issues. This review should also include a gender and inclusion dimension. Indicative guidance on the contents of the overall assessment is provided in Annex 1.
D. Management of Impacts and Issues
For each identified adverse future impact, issue and/or risk, the Consultant will propose measures to avoid, minimise, mitigate or compensate for them.
EBRD PR Compliance AssessmentBased on the results of the E&S Assessment, the Consultant shall evaluate the compliance status of the Project with the EBRD PRs using the Compliance Summary format provided in Annex 2.
3.3. Task 3 - Land Acquisition and Livelihood Restoration Frameworks (LALRFs)
The Consultant shall also develop a Land Acquisition and Livelihood Restoration Framework (LALRF) potentially for each IZ where PR5 is triggered. The Consultant will:
Review the applicable law(s), methodologies and other provisions in order to clarify legal requirements under Kosovar Law, and identify any specific gaps with EBRD’s PR5 – this should cover issues including (but not limited to) eligibility, valuation, types of losses and compensation, engagement activities, laws and policies which may be relevant (such as those related to social assistance), grievance processes and timing of implementation in relation to project activities;
Determine the nature and scope of likely resettlement/economic displacement impacts for the three IZs; document any steps taken /to be taken to reduce negative impacts of land acquisition (with respect to physical displacement and loss of access, as well as economic displacement and loss of livelihood), accounting for any potential disproportionate impacts to PAPs as a result of their gender, age, physical ability or socio-economic status Develop a detailed work plan and a deadline for delivery of the Livelihood Restoration Framework; propose field plan including refining and finalisation of the methodology presented in the proposal, category and list of surveys, draft stakeholder list, plan for consultations meetings etc.;
Carry out a site visit to each IZ to ascertain potential socio-economic impacts and regulatory liability or reputation risks, including disputes with local communities, landowners/users, NGOs and CBOs etc. (if any);
Specifically address how the Project used alternatives analysis to identify the locations of its assets and to what degree this concept is integrated its corporate E&S management system;
Provide recommendations for any mitigation measure to enable compliance as appropriate; Describe the overall governance of resettlement issues within the Client’s organisation that will
be involved in the land acquisition and livelihood restoration process (e.g. senior management accountability, integration of resettlement aspects into financial risk analysis, budget planning, contracting and staffing plans, and institutional responsibilities);
Prepare a list – to be shared with the EBRD in advance – of consultations to include the Client, local authorities, relevant government representatives, other industry representatives and civil
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society organisations (CSOs), where appropriate, so as to understand key issues, expected impacts on the affected population and identify additional relevant stakeholders who should be included in future LALRP and stakeholder engagement plans (SEPs);
The Consultant is expected to conduct initial consultation meetings with the Project team, key state institutions, as well as other stakeholders i.e. community representatives, relevant local authorities and key NGOs during the site visit(s);
Assess the current state of the local real estate market, including availability of replacement land/assets and assess people’s preferences for land loss compensation (i.e., financial or land replacement) and what viable options exist for each preference; and
Summarise key findings with a list of major issues from the site visits for inclusion in the LALRF(s).
3.4. Task 4 - Baseline assessment on Gender and Economic Inclusion
The Consultant is expected to provide an analysis on how the proposed investment can impact the economic opportunities of men and women in the Project Area and, based on the assessment undertaken, provide recommendations on the scope of post-signing TC assignments (to enhance for example training, awareness, entrepreneurship, inclusive policy engagements) to promote economic opportunities of men and women in the Project Area.
The Consultant will: Compile and present the current employment status of the local population in the Project area:
e.g. % employed (by occupation and sector); % underemployed (by occupation and sector); % inactive; % unemployed; % studying, by age/gender;
Compile and present data on availability of education and training, at all levels, in the three zones (including partnerships with local vocational schools, structure of trainings, disciplines, transition into employment) and identify needs and challenges faced by certain groups (e.g. women, youth, refugees) in accessing these opportunities;
Assess any impediment to accessing employment and entrepreneurship opportunities faced by certain groups (e.g. women, youth, refugees) in all of the 3 zones (e.g. work permits, jobs restrictions, safe environment and transport, specific selection criteria for business establishment within the zones).
4. Reporting
Upon completion of Tasks 1, 2,3 and 4 the Consultant shall prepare the following reports of the assessment findings.
Summary of Key Findings
On completion of the data review and site visit the Consultant will deliver a Summary of Key Findings to present the initial findings of the work to-date. This report will summarise the key issues that have been identified and, if necessary, will highlight the need for any additional studies, eg. in relation to resettlement, livelihood, retrenchment, biodiversity, etc. This document will be delivered by email or in presentation format.
E&S Assessment Report
The Consultant will provide a concise but comprehensive report of the overall E&S Assessment. The guidance for the report content provided in Annex 1 may be used to structure the report but the Consultant is expected to use their professional experience to determine the final contents.
Land Acquisition and Livelihood Restoration Frameworks (LALRFs)
The Consultant will, based on the tasks above, document the results of the desktop review, site visit and initial consultations in the form of a LALRF for each IZ where PR5 is triggered. The Frameworks
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should be agreed to by the Client and prepared so that they can be publicly disclosed and used by affected people.
At a minimum, the Frameworks should include: Description of the Project, including land expropriation, PAPs, and likely categories of impacts; Demonstration that resettlement/economic loss was unavoidable (if that is the case) and
description of what was/will be done to minimise impacts; Policy principles and objectives governing expropriation, resettlement, economic displacement
and related social impacts; Description of the process for preparing and approving resettlement and livelihood restoration
plans, when required; High level legal framework comparing national local laws, customs and regulations, and EBRD’s
policy requirements and proposed measures to bridge any gaps between them, which should include gaps in the valuation process compared with replacement value;
Description of the scope, process, methodology and sampling for carrying out census socio-economic surveys and focus group consultations that will be undertaken during the preparation of the LALRF;
Entitlements matrix, outlining the basic requirements of EBRD’s policy, the types and levels of compensation to which each affected group (both title and non-title holders) is entitled (e.g. cash compensation, physical property, job offer, etc.), and proposing special assistance to men and women identified as vulnerable;
Description of independent grievance redress mechanisms or, at a minimum, a commitment by the Client that a mechanism will be developed and implemented as part of the LALRF/P;
Description of proposed methods for inclusive consultations with, and participation of, men and women affected persons in planning, implementation and monitoring of resettlement and livelihood restoration;
Summary of the implementation process, including institutional responsibilities and arrangements for preparing, implementing and monitoring the detailed LALRF/P;
An indicative timetable and budget for a LALRP;
Environmental and Social Action Plan (ESAP)
The Consultant shall develop a comprehensive ESAP to address issues identified during the Environmental and Social Appraisal. Due to the nature of the Project, it is likely that there will be overarching ESAP items and specific ones for each IZ. The ESAP will focus on those issues that are required to bring the operations into compliance with the EBRD’s requirements and will be presented and sequenced by PRs. Actions identified must be numbered, clearly defined, indicate a time frame for completion (with specific reference to those actions that must be completed before financial close if appropriate) and a responsible party specified. Further, each item must contain a description of the factors that will be used to determine when the identified action is closed/completed. The Consultant will also inform the Client about any material budget implications of ESAP items (although this information may not be required in the public domain).
The ESAP will be compact and, if needed, details will be included in sub-plans referenced in the main ESAP. The required format of the ESAP is given in Annex 3.
Stakeholder Engagement Plan (SEP)
The Consultant shall prepare a draft SEP in compliance with the PR10. Again, due to the nature of this Project, it is expected to have an overarching SEP with sub-sections covering the three IZs . The scope and level of detail of the SEP will be scaled to fit the needs of the Project and the objectives of EBRD PR10. Following review of the Project operations, the Consultant will propose a format best suited for the specific Project needs. Guidance for the contents of an SEP is provided in Annex 4.
Non-Technical Summary (NTS)
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The Consultant will prepare, in consultation with the Client, a concise, over-arching, standalone NTS. The NTS will be written in non-technical language and the Consultant will ensure that the NTS can be used to demonstrate compliance with the EBRD requirements, and provide confirmation that the documents are ready for public disclosure.
An indicative list of issues for the NTS is given in Annex 5.
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APPENDIX 1SAMPLE REPORT FORMAT FOR AN E&S ASSESSMENT REPORT (GREENFIELD)
Note: The following is an indicative list of issues for possible inclusion in an E&S Assessment report for a Greenfield Project. The Consultant is expected to use its professional judgement to determine what issues (either listed below or additional) are relevant to the Project. Issues which are not relevant to this project should be covered by a short statement that they have been considered but do not apply in this case.
Executive SummaryA concise summary description of the Project, its rationale, the existing operations and overall setting, significant environmental and social impacts, recommended mitigation and enhancement measures, monitoring proposals, and the extent of the Client’s commitment to these recommendations and proposals.
1 | Project DescriptionPrecise description of the Project within its geographical, environmental and socio-economic context. This should include information on whether and how the Project is part of a wider development plan/programme. A systematic comparison of feasible alternatives to the Project in terms of location, project technology or design in terms of potential environmental and social impacts. This should include the ‘do-nothing’ option.
2 | Legal RequirementsOutline of the policy, legal and administrative context of the ESIA summarising the environmental and social and project approval requirements of the Bank, co-financiers and applicable regional/global conventions or agreements. The timeframe for public consultation, project appraisal and implementation should be outlined.
Applicable IFI Environmental and Social Assessment procedures Host Country, Regional and International Regulatory Framework, standards and guidelines,
treaties applicable Approach to benchmarking
3 | Baseline ConditionsA description of relevant aspects of the physical and natural environment and socio-economic conditions in areas affected by the existing operations and the Project to include, inter alia:
Air emissions and noise; Biological and ecological resources (fauna, flora, biodiversity, protected species, critical habitats,
ecosystems); Climatic factors and climate change (e.g. greenhouse gas emissions, including from land use,
land use change and forestry, and sectors of population more affected by climate change); Cultural heritage, including architectural and archaeological heritage; Geomorphology and geology; Land (past and current use, permanent or temporary acquisition); Land use patterns Landscape and visual aspects; and, Material assets; Mitigation potential and impacts relevant to adaptation; Other social issues: community, settlement patterns and residential properties, vulnerable groups Public and / or site specific transportation system; Socio-economic status of the population (disaggregated by gender, age, ethnicity, and other social
characteristics); Soil (organic matter, erosion, compaction, sealing); Stakeholder engagement practices Water (accessibility, quantity and quality, surface and groundwater) and waste water
management; Labour standards (national laws and ILO standards) Worker and public health and safety;
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4 | Potential ImpactsIdentification of the potential environmental and social impacts that could be associated with the existing operations and the Project, including those of an indirect and cumulative nature. Impacts which are unlikely to arise or be insignificant should be recorded, together with the rationale for why they are considered to be unlikely or insignificant. Potential impacts must be considered at the following levels:
Local impacts National impacts Regional/Global impacts
5 | Characterisation of Impacts and OpportunitiesIdentification and characterisation of positive and negative environmental and social impacts in terms of magnitude, significance, reversibility, extent and duration. The possibility for cumulative impacts is to be considered. Quantitative data must be employed to the greatest extent possible. The chapter should also identify opportunities for environmental and social enhancement and identify key uncertainties and data gaps. Both the existing operations and the following Project stages must be considered in this evaluation where appropriate:
Construction phase Operation and maintenance Closure and decommissioning Residual environmental and social impacts
6 | Management of Impacts and Issues An outline of the feasible cost-effective measures to avoid, minimise, mitigate or compensate for environmental and social impacts to acceptable levels and address other environmental and social issues; such as the need for worker health and safety improvements, inter-agency coordination, community involvement, institutional strengthening or training within the executing agency/ governmental agencies/Client or at the community level. Additionally, an outline of any measures that would enhance environmental and social aspects within the area affected by the Project and the existing operations and characterisation of the nature of any residual environmental and social impacts or issues that have not been addressed. A description of the financial provisions for potential risks (for example escrow accounts and insurance cover to provide for inter alia abandonment and decommissioning, site remediation and oil spills and other emergencies). Both the existing operations and the following Project stages must be considered where appropriate:
Construction Implementation and maintenance Closure and decommissioning Residual environmental and social impacts
7 | Monitoring and SupervisionA description of how environmental and social impacts and issues will be monitored and managed in practice; including an indication of how the Project will be supervised by lenders and governmental agencies. Estimates should be provided for capital expenditure and operation and maintenance costs where possible. The following stages must be considered where appropriate:
Construction Implementation and maintenance Closure and decommissioning
8 | Mitigation and Management PlanA record of all measures required to address environmental and social impacts and issues as well as monitoring and supervisory activities associated with these should be consolidated in tabular form. This should also indicate institutional responsibilities, timeframes and associated costs.Appendices
Names of those responsible for preparing the E&S Assessment References and sources of information Records of public meetings and consultations held Supporting technical data
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EBRD Compliance Summary Table (see Annex 2)
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APPENDIX 2ENVIRONMENTAL AND SOCIAL ASSESSMENT: COMPLIANCE SUMMARY TABLE
IntroductionThe Compliance Summary provides a systematic review of project compliance with the EBRD Environmental and Social Policy, as defined through the applicable Performance Requirements (PRs). Scope of compliance is all PRs applicable to non-FI projects. The review is intended to provide a baseline against which to judge future performance of projects through the annual environmental and social reporting process.Between 2 and 10 indicators are identified for each of the applicable PRs: 1, 2, 3, 4, 5, 6, 7, 8 and 10.
GuidanceFor all PRs (Indicators with whole number references) provide a summary of overall compliance with the PR. Justification for any derogation from a PR should be summarised and supporting documents referenced.For each indicator within a PR, please complete the 3 steps below:
1. Decide whether the indicator is applicable. For Category A and B projects the starting point is that all indicators are applicable unless the Project has no significant aspects relevant to the indicator (i.e. no risks), in which case the indicator should be scored "NA" and a brief summary of the reason given. For Category C projects the starting point is all indicators are NA unless the Project has a significant aspect relevant to the indicator (i.e. there is a material risk).
2. Decide whether an opinion is possible. If not (for example if the indicator will apply, but it is too early in the project) score as "NOP" and provide a brief summary of why. Where lack of opinion represents a material omission to the review refer to where this is addressed in the report and summarise any recommendations.
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3. Score the indicator as follows and provide brief justification.
ECExceeding Compliance:The project has gone beyond the expectations of EBRD’s PR requirements. EBRD should be able to use projects rated EC as a role model for positive Environmental and Social effects.
FCFully Compliant:The project is fully in compliance with EBRD’s requirements, and EU and local environmental, health and safety policies and guidelines.
PCPartial Compliance:The project is not in full compliance with EBRD’s requirements, but has systems, processes or mitigation measure in place which are working towards addressing the deficiencies.
MN
Material Non-compliance:The project is not in material compliance with EBRD’s requirements, and the systems, processes and mitigation measures in place are not working towards addressing the deficiencies.
4. Comments/Issues: Provide a brief commentary on the relevance of this requirement for the Project and an explanation of the chosen score.
5. Actions Required: Where applicable, briefly describe any actions required by the client to achieve full compliance with each requirement. Where a relevant action is included in the ESAP for this Project, please provide a reference to the ESAP.
6. PR Summary: Provide an overall summary against the PR, using the above compliance definitions with supporting commentary. In some cases it may be sufficient to address a PR at summary level only, depending on Stage 1 above.
Note: The Material Non-compliance score (at both Indicator and PR level) has significant implications for Project approval and requires particular care. In judging whether the measures sufficiently address deficiencies the consultant should consider in a structured way both the level of residual (post-approval) risk and the level of confidence that the Project can successfully bring the issue into compliance with the Policy through the ESAP. The table below illustrates the approach to be taken.
RiskHigh PC MN MN
Medium PC PC MNLow FC PC PC
High Medium LowConfidence
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KPI Ref. Performance Requirement Score Comments/ Issues Actions Required ESAP
Ref.
1 Assessment and Management of Environmental and Social Impacts and Issues
Summary:
1.1 Environmental and Social Assessment1.2 Environmental and Social Management
Systems1.3 Environmental and Social Policy2
1.4 Environmental and Social Management Plan
1.5 Organisational Capacity and Commitment
1.6 Supply Chain Management1.7 Project Monitoring and Reporting3
2 Labour and Working Conditions
Summary:
2.1 Human Resource Policies and Working Relationships
2.2 Child and Forced Labour2.3 Non-Discrimination and Equal
Opportunity2.4 Workers Organizations2.5 Wages, benefits, and conditions of
work and accommodation2.6 Retrenchment4
2.7 Grievance Mechanism2.8 Non-Employee Workers
2 Where the project represents a substantial extension to the client activities, confirm that Policy and supporting management systems and plans are appropriate for the new activities.3 At appraisal stage there will be limited information. Compliance assessment should address specific plans for monitoring and reporting (against for example ESAP requirements)
and also consider whether there is evidence of weak monitoring/reporting by client on other relevant projects - which may reduce confidence in future performance.4 Will not be applicable to many projects at appraisal stage. However evidence, within the last 3 years of client approach to retrenchment which is not compatible with the Policy
should be taken into consideration.
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KPI Ref. Performance Requirement Score Comments/ Issues Actions Required ESAP
Ref.
2.9 Supply Chain2.10 Security Personnel Requirements
3Resource Efficiency and Pollution Prevention and ControlNB. Appraisal should carefully consider (and state) what regulations or standards have been applied to compliance assessment (eg EU, National, Sector Best Practice). Assessments should address consideration of the performance of alternative techniques.Summary:
3.1 Resource Efficiency3.2 Pollution Prevention and Control - Air
emissions3.3 Pollution Prevention and Control -
Waste waters3.4 Greenhouse Gases5
3.5 Water3.6 Wastes3.7 Hazardous Substances and Materials
4 Health and Safety
Summary:
4.1 Occupational Health and Safety4.2 Community Health and Safety4.3 Infrastructure, Building, and Equipment
Design and Safety4.4 Hazardous Materials Safety4.5 Product and Services Safety4.6 Traffic and Road Safety4.7 Natural Hazards4.8 Exposure to Disease4.9 Emergency Preparedness and Response
5 Particular attention should be given to client demonstration of consideration of alternatives. Projects expected annually to produce more than 25,000 tonnes of Co2 equivalent
should provide an emission inventory and plans for annual reporting.
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KPI Ref. Performance Requirement Score Comments/ Issues Actions Required ESAP
Ref.
5 Land Acquisition, Involuntary Resettlement and Economic Displacement
Summary:
5.1 Avoid or minimise displacement5.2 Consultation5.3 Compensation for displaced persons5.4 Grievance mechanism5.5 RAP/LRP documentation5.6 RAP/LRP implementation5.7 Monitoring
6 Biodiversity and Living Natural Resources
Summary:
6.1 Assessment of Biodiversity and Living Natural Resources
6.2 Conservation of Biodiversity6.3 Sustainable Management of Living
Natural Resources
7 Indigenous People
Summary:
7.1 Indigenous People Assessment7.2 Adverse Effects Avoidance and
Indigenous Peoples Development Plan7.3 Information Disclosure, Meaningful
Consultation and Informed Participation
7.4 Grievance Mechanism and Prevention of Ethnically Based Discrimination
7.5 Compensation and Benefit-Sharing7.6 Impacts/Relocation on Traditional or
Customary Lands and Cultural Heritage
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KPI Ref. Performance Requirement Score Comments/ Issues Actions Required ESAP
Ref.
8 Cultural Heritage
Summary:
8.1 Assessment and Management of Impacts on Cultural Heritage
8.2 Consultation with affected communities and other stakeholders
8.3 Project use of Cultural Heritage
10 Information Disclosure and Stakeholder Engagement
Summary:
10.1 Stakeholder Engagement Plan10.2 Operational Grievance Mechanism
Overall ComplianceNational Environmental, Social, Health and Safety RequirementsEU Environmental, Social, Health and Safety Requirements
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APPENDIX 3ENVIRONMENTAL AND SOCIAL ACTION PLAN TEMPLATE
No. ActionEnvironmental &
Social Risks(Liability/Benefits)
Requirement(Legislative, EBRD PR, Best Practice)
Resources, Investment Needs,
ResponsibilityTimetable
Target and Evaluation Criteria
for Successful Implementation
Status
PR1 Assessment and Management of Environmental and Social Impacts and Issues
1.1 Develop and implement an EMS
Optimisation of environmental management though a formalised system. Provide resources for training and monitoring of emissions
EBRD PR1Voluntary and best practice
Own resources, external consultantsCostAssign responsibilities
20xx Develop and implement an EMSAttain ISO 14001 or equivalent certificationAnnual EHS Report to the Bank
PR2 Labour and Working Conditions
2.1
PR3 Resource Efficiency and Pollution Prevention and Control
3.1
PR4 Health and Safety
4.1
PR5 Land Acquisition, Involuntary Resettlement and Economic Displacement
5.1
PR6 Biodiversity and Living Natural Resources
6.1
PR7 Indigenous People
7.1
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No. ActionEnvironmental &
Social Risks(Liability/Benefits)
Requirement(Legislative, EBRD PR, Best Practice)
Resources, Investment Needs,
ResponsibilityTimetable
Target and Evaluation Criteria
for Successful Implementation
Status
PR8 Cultural Heritage
8.1
PR10 Information Disclosure and Stakeholder Engagement
10.1
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APPENDIX 4GUIDANCE FOR A STAKEHOLDER ENGAGEMENT PLAN
The following is an indicative list of issues for possible inclusion in a Stakeholder Engagement Plan. The Consultant is expected to use its professional judgement to determine what issues (either listed below or additional) are relevant to the Project.
A Stakeholder Engagement Plan will need to: Briefly identify the Project location and areas subject to impact (e.g., list of communities) Record what the Project is legally required to do regarding disclosure and consultation Identify all stakeholders, including stakeholder maps (if relevant) Identify any specific groups who might be considered vulnerable or need more support in the
consultation process, e.g. because of their level of literacy, gender, socio-economic level, ethnicity/language, or location (e.g., proximity of the Project to school, hospital, etc.). For each identified group, specify how meaningful consultation will be undertaken
Report on any previous consultation and disclosure activities Define which documents will be released, including a schedule, and in what language(s) Define where documents will be available (physical and online addresses) , e.g. provide
names of specific newspapers, bulletin board locations, etc. Define how people will be notified of the document availability State the beginning and end dates of the consultation Provide a table or list of meetings, activities or opportunities for comment. If locations/dates
are not yet known, state how people will be informed of the dates State who/where should comments be sent to, what will happen to them and how people will
be advised of the outcomes Define how grievances will be handled (including a specific public grievance process) Define the monitoring and reporting activities for the stakeholder engagement process Define the responsibilities for delivering the stakeholder engagement process
The SEP should be concise and not exceed 15 pages in length, excluding annexes.
Please also see guidance note: http://www.ebrd.com/downloads/about/sustainability/grievance-mechanism.pdf
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APPENDIX 5INDICATIVE LIST OF ISSUES FOR A NON-TECHNICAL SUMMARY
The following is an indicative list of issues for possible inclusion in a Non-Technical Summary. The Consultant is expected to use its professional judgement to determine what issues (either listed below or additional) are relevant to the Project.
Non-Technical Executive Summary 1 | Project Description
A concise and comprehensive description of the Project Proposed works and subsequent maintenance/operation Scheme map and typical cross sections
2 | Background Rationale of the Project, the need for the scheme and scheme objectives Legal aspects and compliance with relevant environmental and social laws Current environmental and social situation and considerations History of the Project development and planning; including an outline of the main
alternatives that were studied, their environmental and social impacts, and the reasons for making the final selection
3 | Process ESIA process carried out and integration with design A statement of the national EIA process’s compliance with the EU EIA Directive Public consultations and disclosure and dealing with objections
4 | Environmental Benefits, Adverse Impacts and Mitigation Measures Land use planning and changes Water resources, impacts and management measures Habitats, ecology (flora and fauna) and nature conservation, impacts and management
measures Landscape and visual impacts, impacts and management measures Air quality, impacts and management measures Traffic, noise and vibration; impacts and management measures Waste management Raw material sourcing and transportation, including borrow pits Road safety, impacts and management measures Associated infrastructure impacts and management measures Cumulative impacts Induced (indirectly consequential) impacts Occupational health and safety issues; including explosives safety Disruption, health and safety during construction Consistency with policy, law and other plans Environmental management plans, mitigation measures and compensatory measures
5 | Social Benefits, Adverse Impacts and Mitigation Measures Socio-economic impacts; including gender and management measures (taking into
account gender specificities and needs) Impacts on businesses and employment Impacts to existing infrastructure and public services Local traffic and access impacts Land acquisition and resettlement (cross reference any resettlement report that is
being developed)
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Community impacts (confirm that no Roma are known to utilise the land and/or corridor route)
Labour issues and standards Public road safety; including health and safety mitigation in the design Social management plans, mitigation measures and compensatory measures Cultural heritage, impacts and management measures
6 | Monitoring of Impacts Process for monitoring the identified impacts On-going solicitation of further comments Process for addressing any issues arising
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ANNEX 2STANDARD MEASURING INDICATORS AND SRI IMPACT INDICATORS
Standard measuring indicators:
Sector Indicator Data point to be collected Projected after implementation
completion*
Water Supply
Total population benefitting from access to tap water.
Number of persons connected to improved access to tap water.
Annual reduction in tonnes of CO2 equivalent derived from the lowering of water losses system-wide.
Average (for sector) kwh used to produce 1 m3 of watermultiplied with,amount of m3 of water losses eliminatedmultiplied with,average tons of CO2 generated by energy generation in the country.
Annual m3 potable water produced.
Number of persons connected to improved access to tap water multiplied by average consumption of water in m3/year.
* measured two years after projected full loan disbursement
SRI impact indicators (as applicable):
SRI impact indicator
Unit Data point to be collected
Primary energy saved
GJ/yr Project energy use compared to baseline6 energy use.Primary energy includes:
1. Direct use of fossil fuels2. Direct use of biomass.3. Use of electricity, multiplied by a loss factor to take into account
country average generation efficiencies and electricity grid losses7
Additional Service Improvement Information (as appropriate) baseline and projected change post Project implementation
- Water Resources – increase in water supply resilience (increased diversification in new sources, restoring existing supplies m3/yr)
- Potable Water Production – reduction in physical outage (MLD)- Potable Water Production – increase in drinking water quality (%)- Water Distribution – reduction in interruptions in supply (no of events >24hrs/km)- Water Distribution - increase in minimum pressure (%)
6 The baseline is defined as the expected conditions without the project two years after full loan disbursement. The baseline is compared to the conditions projected with implemented project two years after full loan disbursement.7 For example, with an average electricity generation efficiency of 40% and grid losses of 7%, the primary energy use
(MWh) is 2.7 x the direct electricity use (MWh).
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CO2 emissions reduced
ton CO2e/yr
Project CO2 emissions compared to baseline CO2 emissions.CO2 emissions include:
1. Emissions as a result of direct use of fossil fuels2. Indirect emissions as a result of the use of electricity8
3. Emissions of other Greenhouse gases (in particular methane9) expressed in CO2 equivalents.
Water saved m3/yr Project water use compared to baseline water use. Water savings must be determined for the following project activities:
1. Water recycling projects that recover wastewater streams for reuse or alternative use.
2. Application of technology or management actions that lead to effluent water quality improvements in regions with water scarcity10
3. Water loss prevention and water demand managementMaterial savings ton/yr Material use compared to baseline material use. Material savings must be
determined for project activities aimed atwaste minimisation:
1. Minimisation of waste streams by integrated measures (i.e. improvement of existing installations, processes or procedures/management)
2. Waste recycling projects that reuse waste as inputs into new products or as a resource
8 The CO2 emissions as a result of the use of electricity are determined by multiplying the use of electricity (MWh) with the
country specific grid emission factor (ton CO2/ MWh) in line with the joint MDB list of grid emission factors.
9 Tons of methane emissions (ton CH4) can be converted to tons of CO2 equivalents (ton CO2e) by applying the a factor of
25 (ton CO2e/ton CH4)10 Qualifying for ‘water saved’: treated waste water with an effluent quality at or exceeding internationally accepted effluent
water quality standards.
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