1. Project financing by mainstreaming Environmental and social issues in urban planning
September 4, 2018
Frank Wildschut, Arcadis

2. Outline Introduction ESG E&S requests of FIs Renewed focus on E&S
World Bank ESF
Case studies
Arcadis support to UN-Habitat

3. Introduction https://www.youtube.com/watch?v=zGJd1uFRDJo
Assuring project finance:
Why?
Who?
What to do from an urban planners perspective? Risk management and positive impacts
Interests from financiers  compliance to international and local standards

4. E&S requests of FIs Risk- and Impact-based Approach
A strong emphasis on risk management and achieving sustainable development outcomes over the life of a project.
Greater emphasis on strengthening borrower frameworks and capacity building, which is recognized as a central development goal by the World Bank and most of its shareholders.
Broadened social assessment and management of environmental and social risks.
Increased harmonization with development partners and recognized good international practices.
Renewed and strengthened partnerships with borrowers.
Helps ensure social inclusion.
Explicitly references human rights in overarching vision statement.

5. Renewed focus on E&S New themes included:
Climate change (impacts at the project level);
Sustainable resource management;
Labor and working conditions; and
Community health and safety.
Including good international industrial practices:
Efforts to measure and reduce greenhouse gas emissions;
Over-arching non-discrimination principle augmented by a new mandatory World Bank Directive
Requires stakeholder engagement throughout the project cycle.
Providing grievance mechanisms for project-affected communities and workers employed by the Borrower in a project; and
Introducing Free, Prior, and Informed Consent (FPIC) of Indigenous Peoples

6. ESF Environmental and Social Standards 1-10
Assessment and Management of Environmental and Social Risks and Impacts
Labor and Working Conditions
Resource Efficiency and Pollution Prevention and Management
Community Health and Safety
Land Acquisition, Restrictions on Land Use and Involuntary Resettlement
Biodiversity Conservation and Sustainable Management of Living Natural Resources
Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities
Cultural Heritage
Financial Intermediaries
Stakeholder Engagement and Information Disclosure

7. Project Categorization
WB E&S SAFEGUARDS
WB ESF
Cat A projects have the potential for significant environmental and social impacts and require a very thorough environmental and social assessment
A more comprehensive classification
High;
Substantial;
Moderate; and
Low
Cat B projects have limited impacts and mitigation measures are readily identifiable
Consider type, location and scale of the project
Cat C project is likely to have minimal or no adverse environmental
The nature and magnitude of the potential risks and impacts
The capacity and commitment of the Borrower to manage such risks and impacts.

8. Overview of WB ESF project implimencations

9. Arcadis support to UN-Habitat
Shelter missions to assure financing by the Adaptation Fund:
Malawi (Zomba)
Mozambique (Chokwe)
Madagascar (Marondava)
Comoros (Moroni)
More to come

10. Q&A
Questions?