WORLD BANK SAFEGUARD POLICIES TRAINING ON WORLD BANK SAFEGUARD POLICIES Introduction and Overview Agi Kiss WB Safeguards Training Workshop Almaty, December 2012

Presentation Outline Overview of the WB Safeguard Policies (10+1) Roles and Responsibilities of WB, FI/PIU, project sponsor/implementer World Bank SG policies in relation to national laws, IFC/MIGA Performance Standards

How should we approach the SG policies How should we approach the SG policies? Not as “black magic”, something to be feared. Also can’t think of SG compliance as “child’s play” – but as a worthwhile professional undertaking which provides rewards in the form of a high quality product.

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

Overview of Safeguard Policies (Details in Separate Presentation) Overall scope and principles All SG Policies: objectives and triggers OP 4.01 OP 7.05 Closer Look This part of the presentation will start with setting out principles which apply to all the SG policies, then give very brief summary of the objectives, triggers and required documentation for all the SG policies, and then provide some more in-depth information on a few policies which are the most commonly applied and/or most often create confusion or raise issues OP 4.04 OP 4.37 OP 4.12

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

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...... The ‘safeguard policies’ are instruments applied by the Bank in its operations to protect the interest of the beneficiaries, clients, shareholders and the Bank. They are linked to one another, and taken collectively, they provide a comprehensive framework for avoiding negative impact on the environment and the livelihood of people. 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)

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, Environmental Guidelines, Environmental Audit, etc. SEA = Strategic Environmental Assessment; E(S)IA = Environmental (and Social) Impact Assessment; E(S)A = Environmental (and Social); Assessment; EMF = Environmental Management Framework Documentation: Incorporated in EA/EMP

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

OP 4.36 (Forestry): Promote sustainable forest management; natural forest protection; 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.

Trigger: all operations 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

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

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

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

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) Include in Turkey – whether EIA is for integrated project, or different elements treated piecemeal Separate presentation to come

Integration of WB EA requirements with Typical ECA National Procedures NATIONAL LEGISLATION World Bank Identification/ Preparation Pre/Feasibility Study Preliminary EIA incl. mitigation measures EA/EMP Appraisal Disconnect between WB requirement for EA prior to Appraisal of WB operation (often done before investments fully identified much less designed), vs. most national laws requiring EA at detailed design stage of investment. Oft leads to preparation of a separate “WB EA” Implementation Detail Design Bidding Docs Final EIA Env. Permit (Monitoring) Construction Permit