World Bank Safeguard Policies:

An Overview

Pan Africa Indigenous Peoples Dialogue with the

Forest Carbon Partnership Facility (FCPF)

April 2012

World Bank Group

This presentation will focus on the Safeguards Operational Policies of the:

International Bank for Reconstruction and Development (IBRD)

International Development Association (IDA)

These agencies of the World Bank Group have Performance Standards similar to the Safeguards OP:

International Finance Corporation (IFC)

Multilateral Investment Guarantee Agency (MIGA)

General Objectives of Safeguard

Policies

Avoid, minimize, mitigate and/or compensate for adverse environmental and social impacts of Bank-supported projects;

Ensure that environmental and social issues are thoroughly evaluated in project preparation and supervision;

Provide a mechanism for consultation with project affected peoples (PAPs) and civil society (including NGOs);

Fully disclose relevant project information to PAPs and public stakeholders; and

Supervise safeguards compliance and outcomes during project implementation

Safeguard Policies Are mechanisms for integration of environmental and

social issues into decision making

Are focused on evaluation and management of environmental and social impacts and risks

Provide a set of specialized tools to support development processes and sustainable outcomes

Support participatory approaches and transparency

Do not cover all social impacts or issues

When do Safeguards Apply in

Bank Operations? Safeguards apply to Investment Lending, including:

Specific Investment Loans (SILs)

Sector-Wide Approaches (SWAps)

Financial Intermediaries (FI)

Community Driven Development (CDD)

Emergency Operations (with flexibility)

IBRD Guarantees

Carbon Finance

Technical Assistance

For Use of Country Systems and Program for Results operations, the focus is on ensuring that the borrower has an acceptable environmental and social management system.

10 Safeguard Policies 4.01 Environmental

Assessment

4.04 Natural Habitats

4.36 Forests

4.09 Pest Management

4.37 Safety of Dams

4.11 Physical Cultural Property

4.12 Involuntary Resettlement

4.10 Indigenous Peoples

7.50 Projects involving International Waters

7.60 Projects in Disputed Areas

Plus Access to Information Policy

Piloting the use of borrower systems (March 2005)

Program for Results (P4R) (January 2012)

Triggering Safeguards for Projects

Each safeguard operational policy specifies circumstances to which safeguard applies (“triggers”)

Failure to trigger a particular applicable safeguard may result in significant adverse impacts on the natural environment and/or PAPs

Threshold decision at Project Concept stage, and revised as necessary through Appraisal

Decision to trigger applicable safeguards is documented in the Integrated Safeguards Data Sheet (ISDS) and other project documents

Safeguard Triggers

4.01 Environmental

Assessment

Project is likely to have potential, adverse environmental risks and impacts in its area of influence

Preparation of an Environmental Assessment (EA)

Safeguard Triggers (continued)

4.04 Natural Habitats

Project has the potential:

(i) to cause significant conversion” (loss) or “degradation” of “natural habitats”:

- Directly (through

construction) or

- Indirectly, through

human activities induced

by the project

(ii) impact on critical natural habitats

Safeguard Triggers (continued)

4.36 Forests

Project:

(i) has the potential to have impact on the health and quality of forests or the rights and welfare of people and their level of dependence upon or interaction with forests ; or

(ii) aims to bring about changes in the management, protection, or utilization of natural forests or plantations

Safeguard Triggers (continued)

4.09 Pest Management Procurement of pesticides or

pesticide application equipment is envisaged either directly or indirectly (through on-lending, co-lending, co-financing or government counterpart procurement)

Project could affect pest management practices with resulting harm in the form of substantially increased pesticide use, maintenance or expansion of unsustainable pest management practices, or otherwise resulting in health or environmental risks

Safeguard Triggers (continued)

4.12 Involuntary Resettlement

Loss of land or other assets resulting in:

(i) relocation or loss of shelter;

(ii) loss of assets or access to assets (including legally protected parks and protected areas resulting in adverse impacts upon livelihoods); and

(iii) loss of income sources or means of livelihood, whether or not the affected people must move to another location

Compensation for those with or without formal title to the land

Safeguard Triggers (continued)

4.10 Indigenous Peoples

Project affects Indigenous Peoples in the project area (adversely or beneficially)

Social assessment and free, prior and informed consultation resulting in broad community support for the project

IPs should receive social and economic benefits that are culturally appropriate and inclusive

Safeguards Triggers (continued)

4.11 Physical Cultural Resources (PCR)

PCR known or

expected to be

present in project area (as part of EA)

Accountability: Borrower and Bank

Responsibilities

Safeguard policies are Board-approved Operational Policies

Corresponding Bank Procedures are approved by Management

Borrower has primary responsibility for the implementation of Bank safeguard policies as per Operational Policies

Bank plays a supporting role, provides guidance, approves borrower safeguard-related activities during preparation and supervises borrower implementation throughout the project cycle as per corresponding Bank Procedures

Consultation

Mandated by OPs on Environmental Assessment, Involuntary Resettlement and Indigenous Peoples

Borrower consults with project-affected peoples and civil society in developing the Environmental Assessments, Resettlement Action Plans and Indigenous Peoples Plans as required by these OPs

Consultation with PAPs does not end at project approval, but is expected to continue through project implementation

Safeguards Documentation:

Safeguard-Specific Documents

Environmental Assessment and Environmental Management Plan, or Environmental and Social Management Framework (OP 4.01)

Resettlement Action Plan, or Framework (OP 4.12)

Indigenous Peoples Plan, or Framework (OP 4.10)

Forest Management Plan (OP 4.36)

Pest Management Plan (OP 4.09)

Physical Cultural Resources Management Plan (OP 4.11)

Other Key Safeguard Instruments

Strategic Environmental Assessment

Regional/Sectoral Environmental Assessment

Cumulative Impact Assessment

Dam Safety Plan

Environmental/Social Audits and Planning Studies

18

Public Disclosure of Information on

Environmental and Social Impacts

As part of its consultation process the Borrower provides project affected groups, local NGOs and the general public with:

- draft and final versions of Environmental Impact Assessment, Resettlement Action Plan and Indigenous Peoples Plan

- information is provided in a timely manner and at a venue, in a language and format understandable and accessible to groups being consulted

Bank discloses EA, RAP, IPP via field offices at Bank Infoshop prior to Appraisal

Like consultation, disclosure is an ongoing process during project preparation and supervision

Safeguards Documentation in

Standard Project Documents

Integrated Safeguards Data Sheet (ISDS): summarizes key safeguard issues, updated through Appraisal

Project Appraisal Document (PAD): sections and annexes on environmental and social assessment, consultation, disclosure and loan conditions; environmental and social safeguard issues are included in the risk matrix

Loan Agreement (LA): agreements on safeguard issues may be included as conditions in LA with specific reference to EMP, RAP, IPP

Safeguards in Project Supervision

(per OP/BP 4.01 and 13.05)

During project implementation

The Borrower:

- reports on compliance with measures agreed with the Bank on the basis of the findings of the EA and other safeguard documents, including implementation of the EMP, RAP, IDP, etc.

- status of mitigatory measures; and

- findings of monitoring programs

The Bank: bases its supervision of project environmental aspects on the findings and recommendations of the EA, including measures set out in legal agreements, any EMP and other project documents

Safeguards: Challenges

Failure to trigger applicable safeguard

Lack of client ownership

Focus on legalities vs. safeguard objectives

Inadequate consultation and disclosure

Lack of coordination between safeguards and project implementation

Unrealistic assessment of borrower implementation capacity

Lack of follow through during supervision – can affect timely preparation of Restructurings or Additional Financing

Environmental, Health and Safety

Guidelines / Pollution Prevention

and Abatement Handbook www.ifc.org/ifcext/sustainability

General EHSG is “universal”

Ambient air quality

OH&S

Community Health & Safety

etc.

Inspection Panel Established in 1993 by the Board.

An accountability, fact-finding mechanism designed to address the concerns of the people who may be affected by Bank projects and to determine whether the Bank has followed its operational policies and procedures during design, preparation and implementation phases of projects.

3 members who are appointed by the Board for non-renewable periods of five years.

Members are selected on the basis of their ability to deal thoroughly and fairly with the requests brought to them, their integrity and independence from the bank Management, and their exposure to developmental issues and living conditions in developing countries.

Update of Bank Safeguard

Policies Ongoing – drawing on recent

experience with IFC’s Performance Standards, input from civil society around the world, and consultations with stakeholders

Regional consultations planned for later this year and in the first half of 2013.

OP 4.10 (Indigenous Peoples) – Key

points raised to date The Indigenous Peoples Policy should remain a

stand-alone policy

The Bank should adopt a stand-alone Human Rights safeguard policy

The Bank should adopt the standard of Free, Prior and Informed Consent for Indigenous Peoples

The Bank should carry out more extensive consultations with Indigenous Peoples, especially during the safeguard policy updating and consolidation process

A rights-based approach is particularly important for climate programs, including REDD+

More Information on Safeguard

Policies at the World Bank Group

Safeguards Website

www.worldbank.org/safeguards

WB Group Environmental, Health and Safety Guidelines http://www.ifc.org/ifcext/sustainability.nsf/Content/EHSGuidelines