LUSAKO RAPHAEL SENIOR ENVIRONMETNAL CONSULTANT AUGUST 2015

1. LUSAKO RAPHAEL SENIOR ENVIRONMETNAL CONSULTANT AUGUST 2015

2. A leading Tanzanian Company provider of environmental, health and safety, risk and social consulting services • Two broad practice areas are: • Impact Assessment and Planning • Performance, Assurance and Risk Management • Served over 100 companies in and around Tanzania and East Africa • Performance assurance by implementing ISO 9001: 2015 requirements • Website: www.tansheq.com • Facebook: www.facebook.com/tansheq

3. WHY EQUATOR PRINCIPLES? Project Finance is a specific type of financial transaction in which lenders rely solely on the revenues generated by a “project” as the source of repayment and security for the loan (aka Revenue Based Finance) Financial Institutions involved in Project Finance recognize that social and environmental risks may affect the ability of the project to generate revenues

4. HOW DOES IT WORK? Are Created By EQUATOR PRINCIPLES ASSOCIATION STEERING COMMITTEE On Behalf of Runs day to day business of EQUATOR PRINCIPLES ASSOCIATION SECRETARIAT EQUATOR PRINCIPLES ASSOCIATION Which is formed by EQUATOR PRINCIPLES FINANCIAL INSTITUTIONS (EPFI) Private sectors financial institutions which are members of Equator Principles

5. Scope of Projects Covered by Equator Principles COVERED PRODUCTS • PROJECT FINANCE ADVISORY SERVICES • PROJECT FINANCE • BRIDGE LOANS • PROJECT-RELATED CORPORATE LOANS (including Export Finance in the form of Buyer Credit) MAIN CRITERION (CAPITAL COST OF AT LEAST US$ 10 M)

7. Principle 1: Review and Categorization (1) EPFI categorize proposed finance bound project based on the magnitude of its potential environmental and social risks and impacts

8. Principle 2: Environmental & Social Assessment

9. Principle 3: Applicable Environmental and Social Standards (1) • The Assessment process shouldaddress compliance with relevant country laws, regulations and permits; • Projects in Designated Countries should comply with relevant country laws and regulations commensurate to Equator Principles 2, 4, 5 and 6; • Projects located in Non-Designated Countriesshould comply with IFC Performance Standards & World Bank Group EHS Guidelines

10. Principle 3: Applicable Environmental and Social Standards (2) Others which might be used by EPFIs in non designated countries: • World Bank Safeguard Policies • World Bank Group EHS Guidelines • ILO Core Labor Standards • EU Environmental Legislation • World Commission on Dams • EA and Involuntary Resettlement Sourcebooks • Pest Management Guidebook • Regulatory Framework for Dam Safety • Pollution Prevention Abatement Handbook • OPCS Guidance Notes

11. Principle 4: Environmental and Social Management System & Equator Principle Action Plan Category A &B Projectsclient develops Environmental and Social Management System (ESMS) detailing a systematic way of implementing an Environmental and Social Management Plan (ESMP) Where the applicable standards are not met to the EPFI’s satisfaction, the client and the EPFI will agree an Equator Principles Action Plan (AP)

12. Principle 5: Stakeholder Engagement • Category A and Category B Projects, requires effective Stakeholder Engagement • Stakeholder Engagement should be an ongoing process in a structured and culturally appropriate manner with Affected Communities andOther Stakeholders • This process should be free from external manipulation, interference, coercion and intimidation

13. Principle 6: Grievance Mechanism Required for Category A and, as appropriate, Category B Projects, as part of the ESMS The client will inform the Affected Communities about the mechanism in the course of the Stakeholder Engagement process

14. Principle 7: Independent Review • Independent Environmental &Social Consultantshall do independent review for Category A and/or B projects, or projects with high risk impacts • High risk impacts includes, but not limited to, following: adverse impacts on indigenous peoples; Critical Habitat impacts; significant cultural heritage impacts and large-scale resettlement • Independent Review check compliance to EP, documentation to be reviewed include ESMPs, ESMS, and SEP and propose/opine EPAP

15. Principle 8: Covenants • All Projects: Client will covenant in the financing documentation to comply with relevant host country environmental & social laws& regulations • Category A &B Projects: Client will covenant the financial documentation: • to comply with the ESMPs and EPAP during construction & operation; • to provide periodic (at least annually) reports; and • to decommission the facilities in accordance with decommissioning plan

16. Principle 9: Independent Monitoring and Reporting Category A and/or B Projects, require the appointment of an Independent Environmental and Social Consultant, to verify project’s monitoring information which would be shared with the EPFI

17. Principle 10: Reporting Transparency • Client shall ensure: • a summary of the ESIA is accessible and available online • publicly report GHG emission levels (combined Scope 1 and Scope 2 Emissions) during the operational phase for Projects emitting over 100,000 tonnes of CO2 equivalent annually • EPFI will report publicly, at least annually, on transactions that have reached Financial Close and on its Equator Principles implementation processes and experience.

18. What Tansheq Offers • E&S due diligence for Project Lenders; • ESIA/ESMP for Project proponents; • Lenders’ Environmental and Social Advisor reviewing the Project ESIA, ESMP, management system and loan covenants • EHS management systems for Projects on behalf of Project proponents • Training on EP and IFC PSs • Monitoring implementation of ESMP and compliance with loan covenants