TRAINING ON WORLD BANK SAFEGUARD POLICIES

Agi Kiss, Regional Safeguards Coordinator, Europe and Central Asia Tashkent, November 2013

Introduction and Overview

Presentation Outline

Overview of the WB Safeguard Policies (10+1): Scope and Principles

Roles and Responsibilities of World Bank, Financial Intermediary, Project Implementation Unit, project sponsor/implementer

Who are the Stakeholders?

WB BoardWB

Board

Project Beneficiaries

Project Beneficiaries

CivilSocietyCivil

Society

NGOsNGOs Affected Persons

Affected Persons

BorrowersBorrowers

MediaMedia

Private Investors

Private Investors

WB Management

WB Management

International Financial Institutions

International Financial Institutions

Overview of Safeguard Policies

Overall scope and principles

All SG Policies: objectives and triggers

OP 4.01

OP 4.04

OP 4.12

OP 4.37

Closer Look (also separate presentation

later)

6

Cross-cutting Principles of SG Policies

OBJECTIVES:

Avoid negative impacts where possible; otherwise minimize, reduce, mitigate, compensate (in that order)

Identify and support sustainable approaches / env & social benefits

Match level of review, mitigation and oversight to level of risk and impacts

Inform the public and enable people to participate in decisions which effect them

Integrate environmental and social issues into project identification, design and implementation

Strengthen Borrower / implementer capacity

Application: • to all WB-financed investment operations (including TA)• To all activities under any project receiving funding from

WB, even if financed from another source

Legal Policies• OP 7.50 International Waterways• OP 7.60 Disputed Areas

Environmental Policies• OP 4.01 Environmental Assessment• OP 4.04 Natural Habitats• OP 4.09 Pest Management• OP 4.11 Physical Cultural Resources• OP 4.36 Forests• OP 4.37 Safety of Dams

Social Policies• OP 4.12 Involuntary Resettlement• OP 4.10 Indigenous Peoples

WB “Safeguard” Policies (10+1)

+ Access to Information Policy

Some environmental and social issues of concern are not covered by specific Safeguard OPs (e.g.: climate change, gender, child labor, poverty alleviation…). Where relevant these should be covered in the ESIA (OP 4.01)

- Use of Country Systems for Safeguard Policies......

OP 4.01 (Environmental Assessment): Ensure potential negative env/social issues are identified, understood and avoided or mitigated ; support environmentally sustainable options

Triggers: direct or indirect physical investments (civil works; provision of goods with “issues”); TA linked to physical investments; any other OP triggered

OP 4.04 (Natural Habitats): Maintain biodiversity and natural ecosystems ; involve local communities in management of Protected Areas and biodiversity

Triggers: investments in, near or likely to affect natural ecosystems (terrestrial, riverine, coastal, marine, aerial); Protected Areas

Safeguard Operational Policies: Objectives, Triggers, Documentation

Documentation: SEA, E(S)IA / E(S)A, EMF, EMP, Env. Guidelines, Env. Audit, etc.

Documentation: Usually incorporated in EA/EMP

Project Categories by Environmental Risk 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:

To be discussed later

OP 4.09 (Pest Management): Reduce human & environment exposure to hazardous pesticides; promote Integrated Pest Management

Triggers: financing purchase of pesticides; investments likely to introduce or increase pesticide use (expansion or diversification of agricultural production)

Documentation: Pest Management Plan (free standing or section in EA)

OP 4.10 (Indigenous Peoples): Protect livelihoods and cultures, support economic and social integration on peoples’ own preferred terms

Triggers: investment within an area occupied or used for economic purposes (presently or traditionally) by a group which falls within definition of IP (in ECA, only northern Russia)

Document: Indigenous Peoples Framework or Plan

OP 4.11 (Physical Cultural Resources): Preserve cultural heritage

Triggers: civil works on historical buildings or in historic areas or areas with rich cultural history)

OP 4.12 (Involuntary Resettlement): Protect people from economic & social impacts of losing land or access to land-based resources

Triggers: potentially any case where land is required for investment (privately owned or publicly owned). Residence or economic use; legal title or not. New construction: presume triggered unless clearly demonstrated otherwise.

Documentation: Resettlement (or Land Acquisition) Policy Framework; Resettlement (or LA) Action Plan

Documentation: Physical Cultural

Protection Framework and/or Plan or section in EA/EMP

The many faces of land acquisition/involuntary resettlement

OP 4.36 (Forestry): Promote sustainable forest management; rural poverty reduction Triggers: investments in/near/upstream of forest areas (esp. natural forest) which are likely to result in forest loss/encroachment; enterprises involving wood or non-timber forest products

OP 4.37 (Safety of dams): Protect people and investments from dam failure

Triggers: dam construction/rehabilitation; water or power projects dependent on dams

Documentation: Dam safety analysis, emergency plan, etc.

Documentation: section in EA/EMP

OP 7.50 (International Waters): riparian States are notified of and have opportunity to question/comment on projects affecting shared water bodies

Triggers: ANY investment involving water abstraction, release of water or materials into water, or hydrological impacts (regardless of scale) , which is connected with a water body shared by 2 or more countries (aquifers, open seas excluded; exception available for rehabilitation of existing schemes)

OP 7.60 (Disputed Areas): Ensure disputing States agree to

proposed project

Trigger: investments in area which is under dispute between countries (e.g. disagreement on precise border)

Access to Information: Transparency, stakeholder participation, better projects

Trigger: all operations

Documentation: notification letter (or exemption memo)

Documentation: Process described and meeting minutes included in EIA

Documentation: legal agreements

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 indicate 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

(Remember the “Mitigation Hierarchy”)

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

More information in separate presentation on “screening and

classification”

World Bank Screens and Sets Project

EA Category

Advises Borrower on the Bank’s EA requirements

Reviews and gives “No Objection” for EA reports (Due Diligence instruments)

Makes report available in Info shop

Supervises implementation of EA/EMP

Makes mutually agreeable changes during implementation

Borrower Prepares and Implements

EA/EMP/EMF in accordance with national laws and WB OPs

Consults project-affected groups and local NGOs

Discloses draft/final documents in country

Responds to Bank and public

Monitors implementation of EMP

Ensures compliance under national laws

Roles and Responsibilities: Direct Investment Projects

Roles & Responsibilities: “Indirect investment” Projects

World BankAssigns SG Category to the overall Project (FI, A, B, C)

Assesses FI capacity to implement SG

Advises FI on SGs and on Framework Documents; gives No Objection to Framework Documents

Discloses all SG documents in Infoshop and sends to Board as required

Prior and/or Post-review of EAs/EMPs/RAPs

Supervises implementation together with FI

FI (or other Intermediary)

Prepares Framework Documents for the overall Project (Environmental Management Framework; Resettlement Policy Framework)

Disclosure and public consultation on Framework Documents

Screens, categorizes, evaluates, approves and monitors Sub-projects based on Framework documents (including ensuring preparation of acceptable

EAs/EMPs; RAPs*)(Sub) BorrowerPrepares EA/EMP, RAP* based on guidance from FI

Disclosure & public consultation of EMP/RAP

Implementation of EMP/RAP* (including selection of contractors; incorporating EMP in contracts; ensuring compliance)

*Preparation and/or implementation of RAP might be responsibility of a separate Government agency

Contractual relationship

WB Safeguard Policies and National Legislation/Regulations

Principles:

Where requirements or standards differ, the more stringent requirements prevail (might be national, might be WB)

Where WB policies and national laws conflict, WB policies prevail for projects with WB financing (even for project components financed by Govt. or others)

Legal basis: Loan Agreement with WB has standing of international treaty, superseding national law

Result: ideally national policy reform, but may be “ring-fencing” of project (can lead to situation of different standards applied in different cases)

Some flexibility in implementation as long as consistent with fundamental principles of Safeguard policies

Screening methodology and outcomes (when is EIA required)

Alternative EA documents (e.g. EMP) Contents of EIA One integrated EIA vs. separate EIAs for

different project components Timing (at what stage of project

preparation) Consultation (timing, frequency, scope,

reporting)

Common Gaps and Conflicts Between OP 4.01 and National Laws

TIME FOR A COFFEE BREAK!