Details on Selected Safeguard Policies

OP 4.01 (Environmental Assessment)OP 4.04 (Natural Habitats)

OP 4.37 (Safety of Dams) OP 7.05 (Projects on International Waterways)

Agi Kiss WB Safeguards Training WorkshopTbilisi, May 2013

A Closer Look: OP 4.01 (Environmental Assessment)

Screening/Scoping – determine what are likely potential issues, including what (other SG) policies triggered, decide what type and level of assessment is needed

Assessment – confirm and evaluate the significance of issuesBaseline (valued ecological components)Identify/estimate likely impacts Compare with acceptable changes from baseline

Mitigation – identify measures to avoid/reduce/compensate for negative impacts including the expected results (e.g. standards to be achieved); identify who is responsible and confirm they have the necessary capacity and resources

Monitoring – verify that mitigation measures are being implemented and that they are achieving the expected results (if not, need to modify them – adaptive management approach)

Environmental Management Process

OP 4.01 focus on process.

Refer to other SG Policies and EHS guidelines for technical details

Like most EA laws, OP 4.01 starts with “screening” to determine EIA requirements, based on initial evaluation of a project’s potential environmental and social impacts …

Full EIA

Limited EA and/or EMP

No env. review required

Potentially major Impacts; complex issues; likely need for significant mitigation and monitoring

Moderate impacts; straightforward issues; likely need for some routine mitigation and monitoring

Clearly minimal or no impacts; very simple or no mitigation required

Category

A

Category

B

Category

C

OP 4.01 Environmental Assessment Requirements for Projects (and sub-projects)

Category A: full, comprehensive EIA (or Strategic EA for program level) at least 2 public consultations (scoping/TOR stage and draft EIA) independent preparation EIA Executive Summary to WB Board (in addition to usual disclosure of

EIA/EMP in-country and in Infoshop) Category B:

limited/partial EA and/or EMP (in some cases, just applicable regulations and standards)

at least 1 public consultation (draft EA)

Category C: No EA requirement (for new investments)

Support for pre-existing operations: Environmental audit; hazard risk assessment:

for Category A or B investment, in addition to other EA requirements for Category C investment, in place of other EA requirements for low-risk sectors and non-direct linked investments might be limited to

verifying compliance with national regulations/permit requirements

Screening/Classification Approaches:

“Project list approach “ (e.g., EU EIA Directive): Activities listed in Annex I: EIA mandatory Activities in Annex II = Initial environmental report; determination to be made whether full EIA requiredActivities not in Annex I or II: no environmental report or EIA required

Activities placed in Annex I or II based on type and scale (e.g., Hydropower plant with installed capacity over 25 MW; Poultry operation with > 50,000 head)

Benefits: clear, objective, easy to implement even with limited expertiseNegatives: inflexible, insufficient consideration of site conditions, context

“Criteria Approach” (e.g. World Bank Safeguard Policies): projects classified based on potential for negative impacts, taking into account project type and scale, sensitivity of location, the nature and magnitude of its potential environmental impacts.

Benefits: flexible, more likely to capture “outliers” with higher than usual risksNegatives: subjective, can be confusing, dependent on expertise & experience

World Bank’s Environmental Screening/EA Categories and key decision criteria

Category A

• significant adverse impacts that are sensitive, diverse, or unprecedented, or that affect an area broader than the sites or facilities subject to physical works

• conversion/alteration of natural habitats

• significant quantities of hazardous materials

• major resettlement

Category B(Compared with Category A):

• potential impacts less adverse & more limited, fewer, site-specific, likely reversible • Mitigation measures can be more easily designed/implemented

Category Cexpected to have no adverse environmental impacts, or only minimal impacts easily and fully mitigated through routine measures

Category FI

project provides funds to a bank, credit institution, etc. for on-lending at FI’s own risk (OP/BP 8.30 – FI lending)

Sub-projects to be screened and categorized as A, B or C and handled accordingly

Requirements and procedures set out in Environmental Management Framework

WB has tried to provide additional guidance, e.g.

“Indicative List of Category A Projects”*

•Large-scale infrastructure: ports and harbor development, transport (rail, road and waterways), large- scale water resources management (river basin development, water transfer); dams and large reservoirs, hydropower and thermal power, extractive industries and oil and gas transport;

•Large-scale agriculture, irrigation, drainage and flood control, aquaculture; agro industries, and production forestry;

•Major urban projects involving housing development, water treatment, wastewater treatment plants, solid waste collection and disposal;

•Industrial pollution abatement, hazardous waste management, industrial estates, manufacture and large-scale use of pesticides; and

Projects that, regardless of scale or type, would have severe adverse impacts on critical or otherwise valuable natural or cultural resources.

*(from WB/OPCS Guidelines for Environmental Screening and Classification , 2007)

Small-scale infrastructure projects: power transmission and distribution networks, rural electrification, mini (run of the river with no major water impoundments) or micro-hydropower projects, small-scale clean fuel fired thermal power plants, renewable energy (other than hydropower), energy efficiency and energy conservation, rural water supply and sanitation, road rehabilitation, maintenance and upgrading; telecommunications, etc.;

Health care service delivery, HIV-AIDS, education (with limited expansion of existing schools/buildings), repair/rehabilitation of buildings when hazardous materials might be encountered (e.g., asbestos, stored pesticides); and

Small-scale irrigation, drainage, agricultural and rural development projects, rural water supply and sanitation, watershed management and rehabilitation, and small-scale agro-industries, tourism (small-scale developments).

“Indicative List“ of Category B projects:

“Indicative Lists” are not equivalent of EU Annexes I and II either in purpose or in content!

Identifying Category A Projects: Relevant Information

Project type: some sectors/industries presumed to be Category A regardless of scale (unless demonstrated otherwise)

Project scale: some sectors/industries are only Category A at large scale, due to area of land take, input materials required, waste volume generated, etc. (thresholds set based on experience)

Project location: some investments are acceptable only in non-sensitive locations (social, cultural, environmental significance and vulnerability)

Types and magnitudes of activities: some projects in generally “non-risky” sectors can include specific activities which are risky

“Sensitive issues”: some projects are in sectors or include activities which raise concerns at a wider (e.g. international) level, beyond the risks and potential impacts of the specific project, and their risks must be seen in that context . Examples include Climate Change impacts, ethnic tensions, charismatic species)

Types, severity and magnitude of potential impacts: Broad, irreversible, beyond project site, etc.

The Classification Dilemma

Type of Project

Scale of project

Project Activities

Project location

Geographic location Environmental significance and sensitivities

Nature of impacts

Magnitude of impacts

Directly financed

Associated

Knowledge and Experience

Blue = likely to be known at the time of project screening

Red = likely to be known only after some investigation (environmental assessment)

Sensitive issues

Sensitive issues

Technical knowledge and experience helps to move info from red zone to blue zone

CATEGORY A, B or C SITUATION? (High, Moderate or Low Risk?)Type and scale of threat (to diver)Location of threat (“area of influence”)Nature/severity /magnitude of potential impacts

Another way to approach EA screening: consider the purpose of EA classification – i.e., to determine the nature and level of environmental assessment and public consultation to be done:

A full, comprehensive EIA and extensive public consultation are needed, to fully understand diverse and complex risks and to identify and evaluate potential mitigation measures A more limited environmental assessment (or review or plan) is required, /review/plan is required, to evaluate a limited range of straightforward risks and to guide the implementation of well-established mitigation measures

No environmental review is required.

The judgment required: which of the above is needed (sufficient) to evaluate and manage the environmental risks presented by the project?

Category A

Category B

Category C

Summary: Recognizing a Category A Project

Consider the breadth and depth of information required. E.g.: • Early stakeholder consultation to ensure EA TOR covers diverse, complex issues• Assessment of significant potential offsite, cumulative and/or indirect impacts • Analysis of environmental pros and cons of feasible alternatives (site, technology, scale, etc.)• Up-to-date, detailed baseline data on site conditions (biological, hydrological, etc.) • Institutional analysis (responsibilities, capacity)• Independent preparation to ensure unbiased analysis and consideration of alternatives

Do many of the specific SG policies apply? (significant issues involving Involuntary Resettlement, Natural Habitats/Forests, Indigenous People, Dam Safety…)

Look for scale of activities and potential for irreversibility (e.g.: physical resettlement of 100+ households; new dam > 15m and/or new reservoir > 3 mill m3; total volume of earthworks >100,000 m3; land “take” > 1000 ha, etc.)

Look for high risk activities e.g.: production/use/storage/disposal of significant quantities of hazardous material; large scale burning of fuel or other pollution-emitting processes; construction of new permanent roads, etc.

(NOTE: Figures are illustrative – not WB policy)

Category A ExamplesPlovdiza Dam, Bulgaria

Storage of Chemicals, Kosovo

Rijeka Port, Croatia

“Low B”Requires only EMP, Checklist EMP orapplication of regulations/ standards

“High B”Requires some level of EA

Significance and duration of potential impactsSensitivity of the siteComplexity of issuesEase/reliability of mitigation

Wide range of risk

Category B Projects: the problem

EA requirements poorly defined in OP 4.01

EIA Screening: “High” B vs. “Low” B vs. C“High B” requires a limited EA to provide site-specific information (e.g. due to potentially sensitive site, or need to better define and understand potential issues) “Low B” has some routine environmental management issues which require only well-defined, standard mitigation and monitoring measures “C” requires no management of environmental issues beyond easily implemented, zero/low cost “good practice” (e.g. appropriate disposal of left-over paint)

Civil works: New construction:

Might be Category A if: industrial purpose; in/near natural habitat, on former industrial /toxic siteMight be “High B” if: on site with particular environmental sensitivity (e.g. adjacent to a river, shallow ground water, heavily populated area with likely land acquisition issues, development with implications for natural resource use

Rehabilitation:Might be “High B” if scale/type of works would require extensive excavation, large quantities of material/generate large amount of debris & trashMight be “Low B” if require significant excavation, demolition and waste disposalProbably “C” if only remodeling, repair, repainting, rewiring, etc.

Category B Project examples

Rehabilitation of tertiaryirrigation canal, Serbia

Hospital rehabilitation,Turkey

Wastewater TreatmentPlant Rehabilitation,Ukraine

Remember: it’s not Category C if…

• …the project will/might/could finance new construction or building rehabilitation* (beyond minimal painting, wiring, etc.)

• …the project provides Technical Assistance or other support which could lead directly to activities which would trigger SG policies

• …any of the above are financed by WB, or Government or other co-financers (covered by overall Project financing plan)

Caution: apparent C projects may include “sleeper” B category activities (sometimes even A category)

OP 4.04: Natural Habitats and Critical Natural Habitats

• Does promote and support natural habitat conservation and improved land use through integration of natural habitat conservation into national and regional development, and the rehabilitation of degraded natural habitats;

• Does not support projects that involve significant conversion or degradation of critical natural habitats

• Does not support projects involving the significant conversion or degradation of natural

habitats unless:

there are no feasible alternatives for the project and its siting, and

comprehensive analysis demonstrates that overall benefits from the project substantially outweigh the environmental costs

Appropriate conservation/mitigation measures are supported by the project

(Reminder) The World Bank:

Project types likely to trigger Natural Habitats Policy

Infrastructure: •Transportation construction (roads, railways, ports, etc.)•Power (hydroelectric, wind, thermal, transmission lines, access roads)•Water (reservoirs, diversions, canals)•Urban or rural development (large land conversion, wetland drainage or filling…)

Agriculture/livestock: land clearing, fencing, pesticides, irrigation

Fisheries: conversion of wetlands or near-shore habitats for aquaculture, destructive/over fishing

Forestry/wood : intensive logging of natural forest; conversion to plantation

Industry: pollution of terrestrial and aquatic habitats, land clearing, access roads

Tourism: land clearing, wetland drainage or filling, excessive disturbance

Telecommunications: transmission lines and towers (often on mountain tops)

Privatization: sale of state-owned lands, water rights

Definitions*• Natural Habitat : land and water areas where

o the biological communities are formed largely by native plant and animal species, and

o human activity has not essentially modified the area's primary ecological functions

• Critical Natural Habitat:* subset of Natural Habitats which have very high biodiversity value, e.g.: – required for survival of endangered, threatened or migratory species;– have special significance for endemic species or species with limited ranges;– support high concentrations of individuals of congregatory species;– Have unique assemblages of species or are associated with key evolutionary

processes– Support biodiversity of highly significant social, economic or cultural importance

to local communities; OR– Are strictly protected under national laws and/or international agreements

* Paraphrased combination of WB and IFC definitions

(See “Critical Habitat Summary” based on IFC P.S. 6 – in workshop materials)

Significant conversion/degradation: elimination or severe diminution of integrity of Natural Habitat, caused by a major, long-term change in land or water use (or short term change with a long recovery time) or by severe pollution. Can result directly or indirectly from the project

Appropriate conservation/mitigation: measures to eliminate or reduce adverse impacts to levels within socially defined limits of acceptable change. May include:

full or strategic partial site protection; restricting conversion or modification to non-essential elements of

ecosystemhabitat restoration/species re-introductionestablishment and maintenance of an ecologically similar (equal value)

protected area of suitable size and contiguity (“Offsets” )

Follow the Mitigation Hierarchy: avoid minimizer ehabilitate/restore compensate)Mitigation measures should always include provision for monitoring/evaluation and adaptive management based on the results

• Identify geographic/ecological Zone of Influence of the project; • Determine whether ZoI includes any likely Natural Habitat

•

Steps for Screening/Applying OP 4.04

Some Indicators of Natural Habitat:• vegetation entirely or mostly comprised of wild plant species• no large scale livestock presence• water body with little or no surrounding development• few or no permanent residences or other significant structures or infrastructure (except small dirt roads and tracks roads)• no significant economic activity other than moderate harvesting of wild species• no significant sources of pollution (sufficient to impair ecosystem functions)• above conditions cover ecologically significant area (varies by ecosystem)

• Identify geographic/ecological Zone of Influence of the project; • Determine whether ZoI includes any likely Natural Habitat

• If yes, carry out desk and site assessment and consultations to determine:

– baseline biodiversity and ecological values;– whether it qualifies as Critical Natural Habitat or Natural Habitat (Critical Habitat Assessment)

• If project could effect (non-critical) Natural Habitat:– EA is required, involving special expertise;– Ensure consultations involve suitable stakeholders (NGOs, resource user groups)

OP 4.04 – Screening and Application Steps

Some Indicators of Natural Habitat:• vegetation entirely or mostly comprised of wild plant species• no large scale livestock presence• water body with little or no surrounding development• few or no permanent residences or other significant structures or infrastructure (except small dirt roads and tracks roads)• no significant economic activity other than moderate harvesting of wild species• no significant sources of pollution (sufficient to impair ecosystem functions)• above conditions cover ecologically significant area (varies by ecosystem)

Important points to remember:Application of OP 4.04 is not limited to Protected Areas. It applies to all natural habitats (including terrestrial, aquatic, marine, aerial).

EIA should clearly indicate (with justification for conclusions) whether the proposed investment has the potential to impact critical and/or non-critical natural habitats. Often this will require field work covering multiple seasons (not just literature review and consultation with experts).

If EA indicates a project would significantly impact a (non-critical) NH, it may be financed but must include mitigation measures acceptable to the WB. Mitigation Hierarchy should be followed

If mitigation includes compensation (offset), it should involve protection of a natural habitat of equal significance

When OP 4.04 is triggered, often calls for involvement of a Panel of Experts in project preparation / assessment / design

Projects affecting natural forests trigger both the Natural Habitats policy and the Forests policy

Remember: Mother Nature is watching!

A Closer Look: OP 4.37 (Safety of Dams)

OP 4.37 divided into 2 sections:

“New Dams” and “Existing Dams and Dams Under Construction Construction”

Actually setting out requirements for:

WB financing for construction of new dams or rehabilation/restoration or heightening of existing dams

WB financing for projects that do not include a new (or rehabilitated or heightened) dam but will rely on the performance of an existing dam or a dam under construction

Large damsor Small dams with special risks

Small dams with no special risk factors

Small water diversion structures whose failure presents no danger to people or assets…OP 4.37 not triggered – address in EIA

When financing construction of a new dam, heightening of an existing dam, or significant/complex rehabilitation of an existing large/high hazard dam, WB requires:

1. Design and construction be supervised by experienced, competent experts: For Large dams (>15 m; or between 10 m and 15 m, with other risk factors*):

review by Panel of Experts (appointed by Borrower; acceptable to Bank) preparation/implementation of detailed plans for

quality assurance, instrumentation, operation and maintenance, emergency preparedness

prequalification of bidders during procurement and bid tendering periodic safety inspections of the dam after completion

For Small dams: generic safety measures designed by qualified engineers …

For small water diversion structures whose failure presents negligible/no risk to local communities/assets, OP/BP 4.37 does not apply -- any potential adverse impacts to be addressed through EIA/EMP (per OP/BP 4.01)

2. Borrower adopt and implement dam safety measures for the design, bid tendering, construction, operation, and maintenance of the dam and associated works

* e.g.: highly seismic area, containment of toxic materials, complex design required by site conditions, etc.

Terms of Reference: Primary: review and advising the borrower on matters relative to dam safety and other critical aspects of the dam, its appurtenant structures, the catchment area, the area surrounding the reservoir, and downstream areas

Usually extend also cover:• project formulation• technical design• construction procedures• associated works (e.g. for water storage dams – power

facilities, river diversion during construction, shiplifts, fish ladders)

PANEL OF EXPERTS for Large Dams

Operation and reporting: PoE is formed early in Project preparation. Meets regularly during feasibility, design, construction, filling, early start-up stages (WB notified of meetings, usual participates as observer). After each meeting, report signed by all PoE members is sent to Borrower & WB After filling and start-up, WB reviews PoE findings and recommendations PoE may be disbanded if no problems found after start-up

Where WB-financed project does not include dam construction, but does rely on the performance of a dam:

dam failure damage project infrastructure poor dam operation project cannot achieve objectives Increased dam capacity required to achieve project objectives

What are some examples of such projects?

Borrower must provide acceptable existing inspections and dam safety assessments and evidence that an effective dam safety program is in operation

Or arrange for independent specialists to :

Inspect and evaluate safety status/performance history of the damReview/evaluate operation and maintenance proceduresProvide a written report with recommendations for any measures to upgrade to acceptable safety standard (can be financed by the project)

OP 7.50Projects on International Waterways

OBJECTIVE: Promote negotiated agreements and arrangements among riparian countries for efficient use and protection of shared waterways

REQUIREMENT: For project that triggers OP 7.50, WB requires beneficiary state formally to notify other riparians at an early stage of proposed project and details (or WB can do so on Borrower’s behalf).

OP 7.50 Applies to: Types of water bodies:(a) any river, canal, lake, or similar body of water that forms a boundary between, or any river or body of surface water that flows through, two or more states, whether World Bank members or not; (b) any tributary or other body of surface water that is a component of any such waterway; and

(c) any bay, gulf, strait, or channel bounded by two or more states or, if within one state, recognized as a necessary channel of communication between the open sea and other states—and any river flowing into such waters.

Types of projects:

(a) hydroelectric, irrigation, flood control, navigation, drainage, water and sewerage, industrial, and similar projects that involve the use or potential pollution of international waterways as described above; and

(b) detailed design and engineering studies of such projects

OP 7.50 applies, but eligible for an Exception to the Notification Requirement

1) For ONGOING SCHEMES: Rehabilitation/addition/alteration/other changes that in WB judgement:

i. Will not adversely change quality or quantity of water flows to other riparians AND

ii. Will not be adversely affected by other riparians’ possible water use

Applies to minor changes; does not cover “works and activities that would exceed the original scheme, change its nature, or so alter or expand its scope and extent as to make it appear a new or different scheme.”

Regardless of Exception to Notification, project should comply with any existing agreements or arrangements between riparians.

2) Water resource surveys, feasibility studies (but they should examine any potential riparian issues)

3) Projects relating to a tributary of an international waterway where the tributary runs exclusively in one state, which is the lowest downstream riparian, unless the project could cause appreciable harm to other states.

Additional refinements …

• Groundwater (aquifers) included • Open oceans excluded• Scale of water abstraction or potential impact

is irrelevant (no “de minimus” clause)

Final decisions on applicability of OP 7.50 and exemptions: WB Legal Dept, Environment Unit (LEGEN)

IF A RIPARIAN STATE RAISES AN OBJECTION:

WB encourages prospective Borrower to respond, negotiate, seek agreement

If no agreement can be reached, WB Board decides whether to proceed with WB financing

AC

B

D

E

REPBULIC OF UPSTREAMIA

PEOPLES’ DEMOCRATIC REPUBLIC OF DOWNSTREAMIA

Atlantic Ocean

F

For which projects is OP 7.50 triggered?(Arrows indicate direction of water flow)