Training of Trainers on Safeguards

Policies and Instruments:

Basis for Categorization of Projects, and

Safeguard Instruments

Bishoftu
January 1-2, 2015
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Contents of the presentation

1. Introduction
2. Screening and Categorization of projects in Ethiopia
2.1 Basis: Policies & legal frameworks
2.2 Categorization of projects (Schedules I, II, & III)
3. WB’s Project Screening and Categorization:
- Screening: Criteria/factors for screening
- Categories of projects: A, B, C, & FI
4. Safeguards Policies & Instruments: OFLCFP & SLMP-II
5. Safeguards Instruments
6. Conclusions

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 1. Introduction
SECTORAL REDUCTION
MECHANISM
STRATEGY FACILITY
(FINANCE) CLIMATE
CLIMATE
RESILIENT RESILIENT
VISION Investment Plans GREEN
and proposals ECONOMY
GREEN
ECONOMY (by 2025)
REGISTRY
(ACTIONS)

ANALYSIS & POLICY COORDINATION FINANCE MRV Knowledge mgt

CAPACITY BUILDING SUPPORT

FINANCE LED BY MEF

Main development objective of GoE: eradicate poverty and sustain growth/CRGE; GTP
Decouple Unsustainable Resource Use and Adverse Environmental Impacts from Economic
Growth (-CRGE; )-in line with environmental & social safeguards
objective of this session: present relevance of proper screening & categorization of projects
(with an emphasis to SLMP-II & REDD+ Initiative) and thereby use of appropriate Safeguards
instruments to address environmental & social impacts for promoting Sustainable Dev’t
 2. Environmental and Social Screening and Categorization of
projects in Ethiopia
2.1 Policies & legal frameworks (Basis)

• Constitution (Proc. No. 1/1995):

Article 43: The Right to Development,
Article 44: Environmental Rights
Article 92:Environmental Objectives, and
Article 9: Supremacy of the Constitution, 9(4): All international agreements
ratified by Ethiopia are an integral part of the law of the land
• Environmental Policy of Ethiopia (1997):
10 sectoral, and 10 cross-sectoral environment policies
Cross-sectoral: Environmental Impact Assessment (Section 4.9.):
a.To ensure that environmental impact assessments consider not only physical and
biological impacts but also address social, socio-economic, political and cultural
conditions
b.To ensure that public and private sector development programmes and projects
recognize any environmental impacts early and incorporate their containment into
the development design process; 4
 2. Environmental and Social Screening and Categorization of
projects in Ethiopia…
Based on…
• Environmental Impact Assessment (Pro. 299/2002)
DIRECTIVE NO.1/ 2008: A DIRECTIVE ISSUED TO
DETERMINE PROJECTS SUBJECT TO ENVIRONMENTAL
IMPACT ASSESSMENT
ENVIRONMENTAL IMPACT ASSESSMENT GUIDELINE
(2000)
ENVIRONMENTAL IMPACT ASSESSMENT
PROCEDURAL GUIDELINE Series 1 (2003)
GUIDELINE SERIES DOCUMENTS FOR REVIEWING
ENVIRONMENTAL IMPACT STUDY REPORTS (2003)
Sector Specific Guidelines 5
 sa
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lm 2.1 Categorization of projects
S ae 2.1.1. ENVIRONMENTAL IMPACT ASSESSMENT PROCEDURAL GUIDELINE Series 1 (2003)
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3. WB: Project Screening and Categorization
Safeguard Policies & Guidelines
Social Policies
Environmental Policies •Indigenous Peoples OP. 4.10
•Environmental Assessment OP4.01 •Physical Cultural Resources OP 4.11
•Natural Habitats OP 4.04 •Involuntary Resettlement OP 4.12
•Forests OP 4.36
•Pest Management OP 4.09 Project
Cycle Legal Policies
•Safety of Dams OP 4. 37 •Disputed Areas OP 7.60
•International Waterways OP 7.50
Guidelines and related policy:
•Pollution Prevention and Abatement Handbook
•Environmental Assessment Sourcebook (and updates)
•Involuntary Resettlement toolkit
•Disclosure of Operational Information
•More at http://www.worldbank.org/safeguard
 3. WB: Project Screening & Categorization…
Factors affecting screening of a project:

• Project or specific components

Type have inherent environmental
risks

Location
•Proximity to & encroachment on
environmentally, socially and culturally
important areas
• A potential impact is considered to be ‘sensitive’ if it
may be irreversible (e.g., lead to loss of a major

Sensitivity natural habitat), affect vulnerable groups or ethnic

minorities, involve involuntary displacement and
resettlement, or affect significant cultural heritage
sites.

Scale •Extent of environmental and social issues: needs to be judged by

the environmental and social specialists in the project context; if
large, the project is more likely to be a Category A project.

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 3. WB: Project Screening & categorization…
Screening of projects…

Objective - To determine EA category

Participants – Task team leaders and
Safeguards
Outcome - A, B, C or FI category assigned
Factors affecting categorization:
 Criteria: type, location, sensitivity, and scale of project
 Projects with multiple components or sub-projects are
categorized according to the component with the most serious
potential impact

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 3. WB: Project screening & categorization
Category of projects
1. Category A
Have significant environmental and social adverse impacts that are
sensitive, irreversible, diverse or unprecedented;
Impacts may affect an area larger than that subject to physical works;
Requires full Environmental Assessment (EA)
o EA compares project feasible alternatives and their related impacts (including
“No action”);
o EA recommends avoidance, minimization, mitigation measures and
compensation and their monitoring
Example:
• Although decisions on categorization are made on a case-by-case basis, examples of
Category A projects are:
Large dams and reservoirs; Forestry (large scale); Agro-industries (large scale);
Industrial plants (large-scale);
Large-scale agriculture, irrigation, drainage and flood control, aquaculture; agro
industries, and production forestry; Transport (rail, road and waterways)
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 3. WB: Environmental and Social Screening
Category of projects …
2. Category B -
• Potential environmental and social impacts within its area of influence
are not significant/less adverse than that of Category A projects;
• Impacts are site-specific and mostly reversible, few if any of them are
irreversible, and in most cases mitigation measures already exist or
can be designed more readily than for category A projects.
Requires a more limited EA:
• Example:
 small scale irrigation; small-scale, micro hydro power plants, and
small sanitary landfills; rehabilitating or maintaining an existing
infrastructure (e.g., roads, power, transmission and irrigation
networks)
 Watershed management and rehabilitation, and small-scale agro-
industries, tourism (small-scale developments).
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 3. WB: Environmental and Social Screening

Category of projects …
3. Category C
 Likely to have minimal or no adverse environmental and/or
social impacts-
 Beyond screening, no further EA action for a category ‘C’
project is required
 Technical assistance projects on institutional development,
computerization, and training
• Education and Health projects not involving construction;
• Rehabilitation of a limited number of small buildings (e.g.,
schools or health clinics where health care waste is not an
issue) – no changes in blueprint; and
• Institutional development, training and certain capacity
building activities.
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 3. WB: Environmental and Social Screening
Category of projects…
4. Category FI –
• Involves a financial intermediary; investments are done through sub-
projects with different environmental impacts;
• The Bank requires that each FI screen proposed subprojects and
ensure that sub-borrowers carry out appropriate EA for each
subproject.
• The FI screens each subproject proposed for financing, and classifies
it into any one of three categories: A, B or C;
• Requires an ESMF to provide guidance to concerned stakeholders
regarding the environmental and social mgt of subprojects where
the exact locations and potentially negative localized impacts are
not known
• Examples of Category FI projects are: Corporate loans to banks

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 Screening & Categorization of Oromia Forested Landscape Carbon
Finance Project (OFLCFP)
Safeguard Policies Triggered Explanation

Environmental Yes Project: significant +ve impacts on the targeted

Assessment OP/BP 4.01
forest. However, OP 4.01 is triggered as some of
the possible sub-investment activities under
Component limited environmental & social
adverse impacts. It requires ESMF, environmental
& social assessment, ESMP

Natural Habitats OP/BP Yes Consistent with OP. 4.01, degradation/conversion

4.04 of critical habitats will not bet supported

Forests OP/BP 4.36 Yes Consistent with OP. 4.01, ESMF will detail
procedures to screen project activities for
potential adverse impacts & to take mitigation
measures

Pest Management OP 4.09 TBD It will be addressed during full project preparation
Physical Cultural Yes ESM, EAs & ESMF will include provision to address
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Resources OP/BP 4.11 OP 4.11
 Screening & Categorization of Oromia Forested Landscape Carbon
Finance Project (OFLCFP)
Safeguard Policies Triggered
OP/BP 4.10 Yes Issues of OP 4.10 (including grievance redress & benefit
sharing) will be addressed through social assessment &
consultation to reflect policy requirements
Involuntary Yes Project activities may involve acquisition of land &/or
Resettlement OP/BP restriction of access to forested areas & protected areas.
Thus, Resettlement Policy Framework (RPF) & Process
4.12 Framework (PF) will be prepared to address the issues
Safety of Dams OP/BP TBD This policy will evaluated during project preparation.
4.37 There could be potential small irrigation. No new or
rehabilitation of large dams are anticipated
Projects on International No
Waterways OP/BP 7.50
Projects in Disputed No
Areas OP/BP 7.60

OFLCFP: category B Project

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 Screening & Categorization of SLMP-II
Safeguard Policies Triggered Explanation

Environmental Yes Generally, SLMP-II would provide positive

Assessment OP/BP 4.01
environmental & social benefits. However, OP
4.01 is triggered as some of small scale
infrastructures sub-projects could results in
adverse impacts. Thus, ESMF has been prepared,
consulted & disclosed for the project

Natural Habitats OP/BP Yes Consistent with OP. 4.01; OP 4.04 reflected in the
4.04 ESMF
Forests OP/BP 4.36 Yes Consistent with OP. 4.01, Project will not finance
any deforestation. Any OP 4.36 issues will
addressed as per the ESMF procedures &ESMP of
the project

Pest Management OP 4.09 yes ESMF has included issues of IPM to address issues
of agro-chemicals
Physical Cultural Yes OP 4.11 addressed in the ESMF in case of
Resources OP/BP 4.11 encounter with physical cultural resources 16
 Screening & Categorization of SLMP-II
Safeguard Policies Triggered
OP/BP 4.10 Yes OP 4.10 triggered. Social assessment conducted & in-
depth consultation carried out to reflect policy
requirements. Grievance redress & benefit sharing
mechanisms reflected in the PAD
Involuntary Yes OP 4.12 triggered as the Project activities may involve
Resettlement OP/BP acquisition of land &/or restriction of access to communal
natural resources. Thus, in addition to ESM, Resettlement
4.12 Policy Framework (RPF) developed.
Safety of Dams OP/BP yes No new or rehabilitation of large dams are anticipated.
4.37 There will possibly construction of small dams
construction for small-scale irrigation.
Projects on International No
Waterways OP/BP 7.50
Projects in Disputed No
Areas OP/BP 7.60

SLMP-II: category B Project 17

 4. Safeguards Policies & Instruments
# Safeguard policy Safeguards Instruments
Environmental Instruments Social Instruments
ESIA
1 Environmental Assessment EIA SIA
OP 4.01 (umbrella) ESMP
EMP SMP
EMF ESMF SMF
Env. Audit ES-Audit Social. Audit

2 Forest
3 Pest Management
4 Natural Habitats
5 Safety of Dams
SESA
Hazard Assessment
ESIA, ESMF, ESMP, SESA
Integrated Pest Management
ESIA, ESMF, ESMP
ESIA/ESMP/Risk Assessment

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 4. Safeguards Policies & Instruments…
# Safeguard policy Safeguards Instruments
Environmental Social Instruments
Instruments
6 Indigenous Peoples (OP 4.10 )- Social Assessment (SA),
ETH case: Underserved & SMP
vulnerable people
7 Involuntary Resettlement (OP RPF, PF, RAP, ARAP
4.12)
8 Physical Cultural Resources (OP National policy & legal
4.11) frameworks and
guidelines as well
Legal Policies
9 OP 7.50 International Relevant OP 4.01 Instruments
Waterways
10 OP 7.60 Disputed Areas Relevant OP 4.01 Instruments

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5. Environmental & social safeguards Instruments
• Environmental and Social Management Framework
• Environmental & Social Management Plan (ESMP- EMP,
SMP)
• Strategic Environmental & Social Assessment (SESA)
• Environmental and Social Impact Assessment (ESIA)-EIA,
SIA
• Environmental & Social Audit
• Regional EA
• Sector al EA
• Hazard Assessment
• Risk Assessment
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 4. ESA Instruments …

• Social Assessment/Enhanced social assessment

• Resettlement Policy Framework
• Process Framework (Restriction of access to
natural resources)
• Resettlement Action Plan (RAP)
• Abbreviated RAP

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 4. ESA Instruments
a) Strategic Environment and Social Assessment (SESA)

• SESA aims to ensure that environmental and social

issues are addressed from an early stage in the process
of formulating policies, strategies, plans and programs
(PPPs) at the macro- and meso-level.

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Benefits of SESA
 Proactively informs the development of PPPs
 Identifies the opportunities and constraints, which the
environment places on development & vise-versa
 Provides guidelines to ensure that development is within
the sustainable limits
 Has the ability to integrate across areas, regions or
sectors
 Improves the way in which cumulative effects are dealt
with in environmental assessments, for example, through
the use of thresholds and limits of acceptable change

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 4. ESA Instruments
b) ESIA

• ESIA: An instrument used to identify and assess the

potential impacts of a proposed project, evaluate
alternatives, and design appropriate mitigation,
management, and monitoring measures (generally
in the form of an ESMP).
• A full ESIA is required if a project is likely to have
significant adverse environmental and social
impacts that are sensitive, diverse, or
unprecedented (Category A project).

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 4. ESA Instruments
c) Environmental & Social Management Plan

• ESMP: A tool consisting of mitigation, management,

monitoring and institutional measures to be taken during
implementation and operation to eliminate or offset adverse
impacts or reduce them to acceptable levels. The plan also
includes the actions, schedules for implementation and
costs needed to implement these measures.
• Implementation Plan for meeting Commitments and
Conditions of Consents

• ESMP provides a critical link between the EIA report required

for project appraisal and environmental compliance during
project implementation/operation
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 4. ESA Instruments
c) Environmental & social Management Plan…

Environmental & Social Management Plan (ESMP) and EIA:

How are they related?
• ESMP is an action plan and is based on results of EIA
• For Category A projects, ESMP is an essential feature &
part of EIA/ESIA

• For Category B projects, the EA may be limited to EMP (no

separate EA report)

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 4. ESA Instruments
c) Environmental & Social Management Plan…

One ESMP or Multiple ESMPS:

• Some projects require several ESMPs:
Site-specific ESMPs
• Typical for projects with several components or subprojects on different
sites (SLMP-II)
Impact-specific ESMPs, when particular impacts
require special attention, e.g.:
• ESMP for hazardous waste management
• ESMP for oil spill prevention and response
• To guide preparation of multiple ESMPs, Generic or
“Framework-ESMF is developed first (SLMP-II)
 5. Conclusions
Strengthening the application of safeguards policies
& instruments is decisive to :
– Improve project performance – sustainability, risk mgt,
results, leadership in rural poverty-environment nexus
– Better address emerging areas – climate risk mgt., food
security, value chain development/market, etc.
– Enhance the balance between biophysical NRM aspects
with social issues(Video of SLMP… Hope for Africa)
Proper screening, categorization, and use of
safeguards instruments should be given priority in
the SLMP-II sub-projects and REDD+ Initiatives (as early as
possible using relevant information and proper stakeholders engagements)
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 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

EHS Guidelines
www.ifc.org/ifcext/sustainability.nsf/Content/EnvironmentalGuidelines

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