World Bank Safeguard Policies Dr. Stephen F. Lintner Senior Technical Advisor World Bank June 2007

1. World BankSafeguard PoliciesDr. Stephen F. LintnerSenior Technical AdvisorWorld BankJune 2007

2. World Bank: Four Points of Focus • Focus on Poverty Reduction, including Millennium Development Goals • Commitment to Environmentally and Socially Sustainable Development, supporting Outcomes from the Rio and Johannesburg Summits • Promoting Country Driven Development Effectiveness, including the Paris Declaration • Actively Supporting Responsible Growth Worldwide

3. World Bank Group • Founded in 1944 • 185 Member Countries • Operates Through: • International Bank for Reconstruction and Development (IBRD) • International Development Association (IDA) • International Finance Corporation (IFC) • Multilateral Investment Guarantee Agency (MIGA) • International Center for the Settlement of Investment Disputes (ICSID)

4. World Bank • Development Policy Loans • Poverty Reduction Strategy Credits • Investment Loans • Financial Intermediary Operations • Social Funds/Community Driven Development • Rapid Response - Emergency/Post Conflict Operations • Global Environment Facility/Carbon Finance • Output Based Aid

5. Environmental and Social Review • All Bank Supported Operations Reviewed for Environmental and Social Impacts and Risks • Development Policy Based and Poverty Reduction Strategy Credits (when appropriate) • Strategic Assessment • Poverty and Social Impact Assessment • Other Appropriate Instruments • Investment Lending • Safeguard Policies

6. Safeguard Policies • Focused on evaluation and management of impacts and risks • Mechanisms for integration of environmental and social issues into decision making • Provide a set of specialized tools to support development processes • Support participatory approaches and transparency • Do not address all environmental and social aspects of programs and projects

7. Safeguards Reorganization • Environmentally and Social Sustainable Development Network Merged with Infrastructure Network • New Combined Network is Named Sustainable Development • Change Supports Integration and Mainstreaming of Environmental and Social Dimensions into the Infrastructure Lending Program • Quality Assurance and Compliance Unit (QACU) and Regional Safeguard Coordinators (RSC) Moved to Operations Policy and Country Services Network

8. Safeguards Reorganization • This Change Maintains the Independence of the Senior Technical Advisor and other Safeguards Staff and Supports Broader Mainstreaming of Environmental and Social Dimensions into Bank-wide Policies and Strategies • It Enhances Linkage of Safeguards to the Harmonization and Development Effectiveness Agenda which is Coordinated by this Network

9. Environmental Assessment Natural Habitats Forests Pest Management Physical Cultural Resources Plus Disclosure Policy Involuntary Resettlement Indigenous Peoples Safety of Dams Projects involving International Waters Projects in Disputed Areas 10 Safeguard Policies

10. Environmental Screening • Category A - If it is likely to have significant adverse environmental impacts that are sensitive, diverse or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works Requires full Environmental Assessment • Category B - If potential adverse impacts are less adverse than those of Category A projects; these impacts are site specific; few if any of them are irreversible; and in most cases mitigation measures are readily designed Requires a more targeted Environmental Assessment

11. Environmental Screening • Category C - If it is likely to cause minimal or no adverse environmental impacts Beyond screening, no further Environmental Assessment action is required • Category FI - If it involves investment of Bank funds through a financial intermediary, in sub-projects that may result in adverse environmental impact Requires, when appropriate, that each FI screen proposed subprojects and ensure that sub-borrowers carry out appropriate environmental review for each subproject

12. Factors AffectingSafeguard Screening • Type - Project or specific components have inherent environmental risks • Location - Proximity to environmentally, socially and culturally important areas • Sensitivity - Potential impacts may be irreversible or environment sensitive to changes • Scale - Extent of environmental and social issues

13. Key Safeguard Instruments • Sectoral or Regional Assessment • Environmental Assessment • Environmental Management Plan • Resettlement Action Plan • Indigenous Peoples Plan • Pest Management Plan • Dam Safety Plan

14. Consultation • An integral element of process for Environmental Assessments, Resettlement Action Plans and Indigenous Peoples Plans • A two-way process in which beneficiaries provide advice and input on the design of proposed projects that affect their lives and environment • Promotes dialogue between various levels of government, communities, CSOs, NGOs and implementing agencies to discuss all aspects of the proposed project both during preparation and implementation

15. Disclosure of Information • Supports decision making by the Borrower and Bank by providing the public with access to information on environmental and social aspects of projects • Documents disclosed include Environmental Assessment, Resettlement Action Plan and Indigenous Peoples Plan • Disclosed at World Bank InfoShop and in country at appropriate sites and in local languages

16. Approaches at World Bank • Strategic Impact Assessments Increasingly Being Used for Policies, Programs and Plans • Current Safeguard Policies Remain in Use for IBRD and IDA Lending • Piloting Use of Country Systems for Selected Countries and Projects – IBRD and IDA • Initial Phase of Use of Performance Standards – IFC and MIGA

17. Bank Policy on Piloting the Use of Country Systems • Expanding the Use of Country Systems in Bank-Supported Operations – Issues and Proposals • OP/BP 4.00 – Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-supported Projects • Pilot Program Launched and in Progress • Interim Progress Report Submitted to Board

18. Two Principles • Equivalence of Laws and Procedures • Acceptability of Implementation

19. Use of Country Systems • Countries for Pilots Identified on Basis of Their Performance and Interest • Assessment of Equivalence and Acceptability Prepared by Bank Staff • Assessments Are Subject to Consultation and Disclosure Prior to Project Approval • Legal Agreements with Bank Provide Remedies for Non-Compliance • Use of Country Systems Projects Subject to Inspection Panel Process

20. Environmental Assessment Natural Habitats Forests Pest Management Physical Cultural Resources Involuntary Resettlement Indigenous Peoples Safety of Dams Projects involving International Waters Projects in Disputed Areas 8 Policies in Pilot Program

21. Use of Country Systems • AFRICA • Ghana - Energy Development • Ghana – Transportation • South Africa – Wetlands Conservation • Uganda (African Development Bank) – Transportation • EAST ASIA AND PACIFIC • Philippines – Country Safeguard Policies Review • EUROPE AND CENTRAL ASIA • Poland – Transportation (Pre-Pilot) • Romania – Municipal Services • Romania – Transportation

22. Use of Country Systems • LATIN AMERICA AND CARIBBEAN • Jamaica – Municipal Services • Mexico – Small and Medium Infrastructure (Pre-Pilot) • MIDDLE EAST AND NORTH AFRICA • Egypt – Industrial Pollution Prevention and Abatement • Tunisia – Municipal Solid Waste Management • SOUTH ASIA • Bhutan – Transportation • Bhutan – Urban Development • India – Power Transmission and Distribution

23. Use of Country Systems - Partners Bhutan ADB, Danida, GEF, SDV Ghana AfDB Egypt CIDA, Danida, JBIC, USAID Jamaica CDB, CIDA, IADB, JICA Tunisia EIB, GEF, GTZ, KfW South Africa GEF

24. Inspection Panel • Supports Transparency and Accountability • Independent 3 Person Panel Reporting to Board • Current Cases: • Africa Regional – West Africa Gas Pipeline • DR of Congo – Forestry Issues – 2 Operations • Honduras – Land Administration Project • Uganda – Bujagali Hydropower • Similar Mechanisms Established for Regional Development Banks and JBIC

25. Harmonization andDevelopment Effectiveness • 2003 High Level Forum – Rome • 2005 High Level Forum – Paris • 2008 High Level Forum – Ghana

26. Ghana – 2008 • Heads of Agencies and Ministers of Finance and Planning to Attend Meeting • Will Review Progress on Harmonization and Development Effectiveness and Outcomes as Mandated in the Paris Declaration • Key Areas of Focus on Safeguards: • Environmental Assessment Process, Including Strategic Environmental Assessment • Pilot Program for the Use of Country Systems • Capacity Building for Regional, National and Sub-National Institutions

27. World Bank: Four Points of Focus • Focus on Poverty Reduction, including Millennium Development Goals • Commitment to Environmentally and Socially Sustainable Development, supporting Outcomes from the Rio and Johannesburg Summits • Promoting Country Driven Development Effectiveness, including the Paris Declaration • Actively Supporting Responsible Growth Worldwide

28. More Information on Safeguard Policies at the World Bank Group • Safeguards Website www.worldbank.org/safeguards • Use of Country Systems Website www.worldbank.org/countrysystems • SEA Tool Kit Website www.worldbank.org/seatoolkit • IFC’s Sustainability Policy Framework www.ifc.org