TRAINING ON WORLD BANK SAFEGUARD POLICIES

1. TRAINING ON WORLD BANK SAFEGUARD POLICIES Introduction and Overview Agi Kiss, Regional Safeguards Coordinator, Europe and Central Asia Tashkent, November 2013

2. 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

4. Who are the Stakeholders? Borrowers Private Investors WB Management WB Board International Financial Institutions Media Civil Society Project Beneficiaries NGOs Affected Persons

5. Overview of Safeguard Policies Overall scope and principles All SG Policies: objectives and triggers Closer Look(also separate presentation later) OP 4.37 OP 4.01 OP 4.12 OP 4.04

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

7. WB “Safeguard” Policies (10+1) • Social Policies • OP 4.12 Involuntary Resettlement • OP 4.10 Indigenous Peoples • 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 • Legal Policies • OP 7.50 International Waterways • OP 7.60 Disputed Areas + Access to Information Policy - Use of Country Systems for Safeguard Policies...... 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)

8. Safeguard Operational Policies: Objectives, Triggers, Documentation 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 Documentation: SEA, E(S)IA / E(S)A, EMF, EMP, Env. Guidelines, Env. Audit, etc. Documentation: Usually incorporated in EA/EMP

9. 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 C • expected to have no adverse environmental impacts, or only minimal impacts easily and fully mitigated through routine measures Category FI: To be discussed later

10. 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

11. 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: Physical Cultural Protection Framework and/or Planor section in EA/EMP Documentation: Resettlement (or Land Acquisition) Policy Framework; Resettlement (or LA) Action Plan

12. The many faces of land acquisition/involuntary resettlement

13. 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: section in EA/EMP Documentation: Dam safety analysis, emergency plan, etc.

14. 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: legal agreements Documentation: Process described and meeting minutes included in EIA

15. 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”

16. Roles and Responsibilities: Direct Investment Projects 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

17. Roles & Responsibilities: “Indirect investment” Projects World Bank Assigns 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 Contractual relationship 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) Borrower Prepares 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

18. 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

19. Common Gaps and Conflicts Between OP 4.01 and National Laws • 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)

20. TIME FOR A COFFEE BREAK!