1. Mali’s EIA System: Current status & key recommendations for improved effectiveness Mark Stoughton, Ph.D. The Cadmus Group Seoul 5 June 2007 Assessment team: Seydou Bouare, Patrick Francis, Seydou Keita, Jean Chrysostôme Rakoatory, Josua Razafindretsa, Mark Stoughton This presentation describes work funded by USAID. However, this presentation is not a USAID product and does not purport to represent the views of the agency.

2. Assessing Mali's EIA system2 An Assessment of Mali’s EIA System  Charge: conduct “an assessment of Mali’s EIA system; the development of recommendations to enhance its effectiveness; and the development of options for funding EIA review, EIA follow-thru, and environmental management activities more generally.”  Funding: USAID/Mali Methodology: A pilot of CLEAA’s proposed project on “strategic technical assistance to EIA systems.” (High-level cooperation of MEA, multi-disciplinary team, desk research followed by extensive stakeholder interviews and a multi-stakeholder workshop.)

3. Assessing Mali's EIA system3 Mali: context Population: 10.4mn (45% < 15yrs); 80% agrarian Population growth: ~3% Population density: 8.4 persons/km2 Life expectancy 57 yrs; Rural poverty 76%; HDI: near the bottom (poor water access a key factor) Niger River: water and transport lifeline

4. Assessment framework screening Projects (& policies) in development EIA review Monitoring & enforcement In practice, do all eligible projects actually enter the EIA process? Are terms of reference appropriate? Is the preparation... technically competent in conformity with the terms of reference? In conformance with ethical standards (including public participation)? Does the EIA system require EIAs for all “high risk” projects? To reduce burden on regulators and project developers, are there non-EIA alternatives for small-scale or “standard” activities? Is compliance with the environmental management requirements established by the EIA monitored? Is there an effective mechanism for enforcement or corrective action? Is there close integration with sectoral pollution control and land use regulations? EIA development In practice, does the review process compel changes in activity design or add mitigation measures and conditions? Is review technically competent? Is review expeditious? Are decisions ethical? Does review incorporate the results of public participation? In practice, does the review process compel improvements to the EA itself? Key regulatory decision-making Is the overall performance of the EIA system monitored? approval EIA rejected Changes to project design Changes to EIA Project development Construction & operation In practice, is an approved EIA required to implement the project?

5. Assessing Mali's EIA system5 EIA system in Mali: The situation  In principal, government is committed to EIA as a strategic tool for environmental management and sustainable development  EIA system is (almost) the only functioning environmental management system in Mali  However, the EIA system does not function at a level sufficient to achieve its objectives Specifically...

6. Assessing Mali's EIA system6 Some key weaknesses  Inadequate scope: some critical projects types outside the scope of the system  Inconsistent application Public-sector projects frequently escape the system  No simplified procedures for small-scale/routine projects  Very low levels of follow-up on EIA conditions

7. Assessing Mali's EIA system7 Some key weaknesses  Resources highly inadequate: No fee-based financing for EIA; 2-person EIA section  Institutional arrangements do not support independence of the system.  Ad-hoc review process. EIA review is by inter- ministerial committee, but system is highly ad-hoc

8. Assessing Mali's EIA system8 Some key recommendations  Revisions to the EIA decree  Improved scope; define environmentally sensitive areas  Simplified procedures or “standard environmental permits” for routine small-scale projects  Define penalties, appeal mechanisms for violations  Implement linkages for follow-up  E.g., Assure that EIA conditions are in auditable form and append them to the environmental license  Require reporting specified by the Environmental Audit decree (in draft) to detail compliance with EIA conditions

9. Assessing Mali's EIA system9 Some key recommendations  Develop/adopt tools for effective, uniform application of EIA procedures  Sectoral guides, Guide to EIA review, “tracking system” to support follow-up  Create “environmental cells” in the line ministries  Serve as focal point for EIA review

10. Assessing Mali's EIA system10  AND improve financing... any effort to improve the effectiveness of the EIA system in Mali must improve the funding of the EIA process; the two issues are not separable. Some key recommendations

11. Assessing Mali's EIA system11 Basic financing questions & recommendations  What are the funding needs? currently, no clear picture of the costs of implementing the current EIA process, nor of the costs that would be involved in implementing a new/improved EIA process. Costs assessment required.

12. Assessing Mali's EIA system12 Basic financing questions & recommendations  What is the niche of a new funding mechanism? Support only the EIA process? Or potentially support other activities? No consensus in MEA, politically sensitive outside MEA  Easiest: support only EIA, use only EIA fees, special sub-account at the treasury.  Better: support the EIA process as an initial and first priority, but design the mechanism to be capable of supporting other environmental protection activities and investments, Why? Donor appeal and economic efficiency.

13. Assessing Mali's EIA system13  What revenue sources? 1.Additional central budget resources required particularly for staff costs of environmental cells in line ministries 2.EIA fees NEW (sliding scale, based on project size & maybe project type) 3.Polluter-pays principle (PPP)-based pollution charges and finesNEW (PPP exists as a de jure principle in Mali, but not implemented in practice) 4.Donor funding NEW Not for operations of the EIA system, but for capacity- building & “ramp-up” Basic financing questions & recommendations

14. Assessing Mali's EIA system14  What institutional arrangements, governance, management? Need for donor support + Need for flexible resource allocation = strong recommendation for an independent funding mechanism  MEA as “cognizant technical ministry” strongly represented in governance structure (and thus has key role in setting spending priorities)  BUT no involvement in day-to-day operations Basic financing questions & recommendations

15. Assessing Mali's EIA system15 Future prospects  Ministry leadership and key stakeholders in line ministries want to make the EIA process work  A number of incremental steps can be taken now  A CIDA-sponsored multi-stakeholder workshop in February validated the conclusions of this assessment & pushed the process forward  Minister attended throughout  Implementation committee established  Progress is slow, but movement is forward  Momentum “on the ground” and stakehholder buy-in means that the time is right for donor support. A 2-year donor-funded capacity- building project would make a very significant difference.

16. Assessing Mali's EIA system16 Thank-you for your attention! mstoughton@cadmusgroup.com Assessment report available upon request