project information document (pid)

PROJECT INFORMATION DOCUMENT (PID)
APPRAISAL STAGE
Project Name
Region
Sector
Project ID
Borrower(s)
Implementing Agency
Environment Category
Date PID Prepared
Date of Appraisal
Authorization
Date of Board Approval
Report No.: AB3842
Environmental and Social Capacity Building for the Energy Sector
AFRICA
Power (100%)
P109588
GOVERNMENT OF CAMEROON
Government of Cameroon
Minister of Economic Affairs, Programming and Regional Development
[ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined)
April 18, 2008
April 29, 2008
June 24, 2008
1. Country and Sector Background
Promoting rapid growth, creating jobs, and accelerating improvements in governance
Poverty in Cameroon remains widespread with about 40 percent of the country’s more than 16
million people living under the poverty threshold of about US$1 per day. The growth of the
economy forecasted in the PRSP did not materialize and the country is off track for meeting most
of the Millennium Development Goals (MDGs) and will have difficulty in reaching them1.
Cameroon, however, is performing below potential, given its rich natural resource endowment,
relatively well trained labor force, bilingual population, and access to the sea. Stronger and more
diversified growth including the development of agriculture, services and manufacturing sectors
will require tackling the constraints to private investment. These constraints include corruption,
inefficient tax administration, limited access to and high costs of financing, and unreliable power
supply. The challenge for the country is therefore to promote rapid economic growth as an
engine for job creation and poverty alleviation. Improvement in governance including
anticorruption measures is necessary if the country hopes to improve the business climate and
enhance growth prospects. Although Cameroon has made progress in this area in the past few
years much remains to be done and corruption represents perhaps the country’s greatest
development challenge2.
Managing the fiscal space. A year ago, Cameroon received debt relief under two major
international initiatives3, clearing the way for a write-down of its external debt from about 40
1
Real GDP growth slowed from 4 percent in 2003 to 2.6 percent in 2005. In contrast, the PRSP target was 5.2
percent a year for the 2003-2006 period.
2
Although Transparency International corruption rating rose from last place in the late 1990s to 138 th of 163
countries surveyed in 2006, corruption remains a major problem.
3
Cameroon’s debt declined under the enhanced Heavily Indebted Poor Countries (HIPC) initiative and the
Multilateral Debt Relief Initiative (MDRI). HPIC debt relief cut Cameroon’s debt by about US$1.3 billion in net
present value terms. Debt relief under the MDRI amounts to a further US$1.1 billion in nominal terms.
percent of GDP in 2005 to 5 percent of GDP in 2006. Cameroon is now poised to make faster
progress toward improving living conditions and reducing poverty. Cameroon should in
particular make use of this breathing space created by debt relief to get onto a higher growth
trajectory that would edge it closer to achieving the MDGs. Debt relief has opened up new
opportunities. Cameroon is using the freed-up resources to increase priority spending, including
on health, education, agriculture, infrastructure development, and institution building. Higher
current spending, however, could undermine fiscal sustainability if the debt relief is not managed
properly. The quality of public expenditures should also be improved and the reduction of
subsidies to public enterprises should be a priority. The resources freed-up could be redirected
towards education, health, and infrastructure development.
Accelerated development of oil, gas and mineral resources and of associated industries and
infrastructure is a key element of the strategy of the Government of Cameroon (GoC) for growth
and poverty reduction.
A key prerequisite of this strategy is the availability of sufficient and reliable electricity, both for
household and industrial purposes. Demand for medium and low voltage is expected to grow at
an average rate of 6% per year during the period 2006-2020. GoC has developed the Plan de
Développement à Long Terme du Secteur de l’Electricité à l’Horizon 2030 (PDSE 2030) to
increase electricity supply for urban and industrial usage. Implementation of the PDSE would
include a succession of investments in large infrastructure projects, such as the Kribi gas power
plant, the Dibamba power plant, the Lom Pangar and Nachtigal dams, and possibly the
Memve’ele, Song Mbengue, Song Ndeng, Kikot, and Noun Wouri dams. GoC has also created
the Electricity Development Corporation (EDC) to implement this policy.
Increased electricity supply would make it possible to develop several large mines, most
particularly:
 Sundance Resources is developing the Mbalam Iron Ore Project in South Eastern
Cameroon, next to the Nki National Park. It is located in close proximity to the Belinga
Iron Ore Project in Gabon, and together with Belinga forms part of an emerging iron ore
province extending through the Republic of Cameroon, the Congo Republic and Gabon.
Production is scheduled to start in 2011. Iron production would require a 500km long
railway to a deep sea mineral port in Kribi, including approximately 200km through
some of the most intact primary growth forest in Cameroon.
 Geovic Cameroon (GeoCam) holds exclusive rights to develop the Nkamouna cobaltnickel laterite deposit next to Lomié and to the Dja Wildlife Reserve in South Eastern
Cameroon. The GeoCam mining permit covers the entire cobalt mineral province in
southeastern Cameroon, perhaps the largest primary cobalt resource in the world. The
company plans to start cobalt and nickel production in 2009.
 Cameroon also has extensive bauxite reserves at Minim-Martap and Ngaouanda, located
in the remote northern parts of the country. Development of these deposits will require
substantial infrastructure development, including upgrading the railway line to the
aluminum smelter sites in Southern Cameroon.
Another key piece of the accelerated development strategy is the transformation of the Kribi area
into an industrial hub, including Cameroon’s main deep sea port, with rail links to mining sites.
The investments under consideration in the energy and mining sectors could have very large
negative impacts on persons and on the environment, which could cancel part of the expected
benefits, unless measures are taken to prevent or mitigate these impacts. For example, future
mining investments and the industrial development of Kribi will have large scale impacts beyond
their direct footprint, including impacts on watersheds and on regional development.
Preparation of the Lom Pangar dam in Eastern Cameroon since 2004 has shown that there is
insufficient capacity within Cameroon to satisfactorily address environmental and social issues
related to a large infrastructure project. Moreover, Lom Pangar has shown that lack of
compliance with international best practices regarding the management of environmental and
social issues arising from a large infrastructure project can deter responsible investors from
participating in a project and delay its implementation. The scale of the issues that will arise
from investments currently under consideration in the energy and mining sectors is at least
an order of magnitude greater than the risks associated with Lom Pangar, or even the
Chad Cameroon Pipeline.
The Chad-Cameroon Pipeline Project
The Chad-Cameroon Pipeline Project (CCPP) was the first significant test of Cameroon’s
capacity to identify the potential environmental and social impacts of a large infrastructure
project, define mitigation measures, and monitor their implementation. As a lender to Chad and
Cameroon, to fund their participation in the pipeline, the Bank assessed that the existing
regulatory and institutional framework for environmental issues, based on the 1996
Environmental Management law, was too weak, and that relying on this framework was too
considerable a risk. As a consequence, it was agreed with the Government of Cameroon that the
CCPP’s environmental and social risks would be managed outside of the Ministry in charge of
the environment. A Presidential Decree from 1997 had established a Comité de Pilotage et de
Suivi des Pipeline (CPSP), hosted by the Société Nationale de Hydrocarbures (SNH), to monitor
the implementation of the Chad Cameroon Pipeline Environmental Management Plan (EMP) and
of any future oil or gas pipelines. Government entrusted the monitoring of the CCPP
Environmental Management Plan (EMP) to CPSP, and requested Bank support through the
Cameroon Petroleum Environment Capacity Enhancement (CAPECE) Project, which
started in 2001. The CAPECE was successful in securing an overall satisfactory level of
compliance by COTCO (Cameroon Oil Transport Company) with the obligations spelled out in
the EMP for the CCPP. It also contributed in developing the capacity of staff in several
ministries, by involving them in a subsidiary manner in monitoring activities. The key
achievements of the CAPECE include: (i) a subset of the draft implementation decrees for the
1996 Environmental Management Law, (ii) a draft National Emergency Oil Spill Response Plan,
(iii) a draft Coastal and Marine Environmental Management Plan for the Conservation of Marine
Biodiversity in Kribi area, (iv) a draft Long-term Vision Strategy for Environmental and Social
Management in the Petroleum Sector in Cameroon, (v) a Health Map for the corridor of the
pipeline, (vi) the implementation of a training plan for staff from the ministries and institutions
involved in the monitoring and supervision of the Pipeline, and (vii) the organization of a yearly
consultation platform between NGOs, COTCO and the CPSP. The CAPECE closed on
November 30, 2007, and its ICR is currently under preparation. Although the CAPECE is now
closed, the CPSP has shown that it has both the capacity and the resources (through the oil
revenue collected by SNH) to continue monitoring implementation of the EMP for the CCPP.
A key element of the EMP for the CCPP that is of concern is the Foundation for Environment
and Development in Cameroon (FEDEC) established through an endowment from COTCO, to
contribute to the management of two protected areas established as an offset to the impact of the
Chad-Cameroon Pipeline on biodiversity, the Camp Ma’an National park and the Mbam and
Djerem National Park, as well as the implementation of an Indigenous Peoples Plan along the
pipeline’s corridor. The FEDEC is in crisis because its initial capitalization of US$3.7 million
has proven to be considerably less than required. Furthermore, the tripartite agreements between
the FEDEC, the Ministry of Forestry and Wildlife (MinFOF) and implementing agencies (WWF
for Camp Ma’an, and the World Conservation Society for Mbam and Djerem) have never been
finalized. The IPP implemented by RAPID has largely operated outside of the Ministry of Social
Affairs (MinAS), the Government department charged with addressing the needs of indigenous
peoples.
2. Objectives
In December 2006, the World Bank’s Board of Executive Directors discussed the Interim
Strategy Note (ISN) for Cameroon, which covers fiscal years 2007-08. The ISN takes into
account several changes that give Cameroon greater opportunities to foster its development:
attainment of the completion point of the Highly Indebted Poor Country (HIPC) initiative in
April 2006, eligibility of the Multilateral Debt Review Initiative (MDRI) and the momentum of
Paris declaration on aid effectiveness, March 2005.
The current World Bank Group support to Cameroon is guided by three principles: (i) addressing
governance including anticorruption, (ii) reinforcing management for results, and (iii)
strengthening partnerships, alignment and harmonization. The ISN provides about US$220
million IDA credit funding for fiscal years 2007-08, in addition to substantial financial resources
from HIPC and MDRI debt relief and direct investments from the International Finance
Corporation (IFC). Furthermore, in order to improve the development effectiveness in
Cameroon, the Bank will pursue all activities in close collaboration with other development
partners.
The World Bank’s new Country Assistance Strategy for Cameroon 2009-2011 under preparation
is expected to focus on helping Cameroon manage its natural resources in an environmentally
and socially sustainable way with the objective to maximize the impact on growth and poverty
reduction. This focus in aligned with GoC’s focus on energy investments as a basis for
sustainable growth as articulated in the revised PRSP. The proposed project contributes to the
sustainable economic development of the country.
The development objective of the project would be to:
Improve the management and accountability of environmental and social issues related to large
infrastructure investments, such as in the energy, mining sectors, and transport sectors. The
Project would initially focus capacity building efforts towards the energy sector, in support of the
Energy Sector Development Project and the PRG for the Kribi power project. The mobilization
of supplemental resources to more explicitly address issues in the mining and transport sectors
would be explored during the projects mid-term review.
The expected benefits of the project are to: (i) reduce the negative externalities of large
infrastructure projects, and (ii) develop a transparent, stable and fair framework for managing
environmental and social risks that should comfort large infrastructure investments, and (iii)
institutionalizes information flows between the populations affected by large infrastructure
projects and political decision-makers.
3. Rationale for Bank Involvement
The Strategic framework of the PRSP rests on seven pillars, including the development of basic
infrastructures and natural resources in an environmentally and socially sustainable manner. The
Bank’s Interim Strategy Note (ISN) identifies the support to the development and quality
improvement of infrastructure as a focus for Bank assistance, in line with PRSP objectives, most
notably regarding energy, transport and urban development. It is important to note that the
Bank’s portfolio in this country consists of 56% in the transport sector and 18% in the urban
development sector. This portfolio will increase significantly this fiscal year thank to two new
operations (Energy Sector Development Project, and PRG for the Kribi power project) that might
constitute an initial step towards Bank support to large hydropower projects in Cameroon. The
two energy projects support Government’s objective of developing additional power generating
capacity to avoid a potential energy gap in the near to mid-term future.
The project comes as a complement to the two above projects, and strengthens their
sustainability. It is thoroughly aligned with the objectives of the PRSP and of the Bank’s ISN.
In the longer term, it would strengthen the capacity of the Government of Cameroon to
efficiently address the environmental and social externalities of mining sector developments, and
thus maximize the development impacts of these investments, help create a fair and stable
investment environment, and increase transparency in the energy and extractive industry sectors.
Cameroon opted for Bank support to develop environmental and social capacity, in the wake of
the implementation of the CAPECE, and as a complement to the Bank’s support to the energy
sector. The Bank also brings to the table considerable experience in the development and
implementation of regulatory frameworks for environmental and social issues derived from its
support to numerous countries around the world, including the following countries in Africa:
Ghana, Uganda, Zambia, The Gambia, Benin, Chad, Malawi, Madagascar, Guinea Bissau, Côte
d’Ivoire, Nigeria, Gabon, and Mauritania.
In addition, during the last meeting of the consultation platform of the Chad Cameroon project,
the participants (Government, NGOs/CSOs and COTCO) unanimously appealed to the World
Bank to support as much as possible capacity building for the NGOs/CSOs involved in the
management of the environment. This appeal was taken into consideration and would
materialize within the framework of the present project. This direct assistance to NGOs is an
innovation in the sense that it inaugurates a new era of partnership between the civil society, the
Government (borrower) and the World Bank in Cameroon. The experience of the Chad
Cameroon Project demonstrated that when they have the required capacity, NGOs/CSOs could
bring added value to the preparation of Environmental Impact Assessment (consultation phase)
and the implementation of the Environmental Management Plan (EMP).
Lastly, the project has also been developed to support the achievement of the objectives laid out
in the Africa Action Plan (AAP). The objectives of the project fall within the spirit of the AAP
notably with regard to good governance. It is clear that, the implementation of big energy and
mining projects in compliance with international environmental and social practices and
standards will directly contributes to the good governance of those sectors.
4. Description
The Government of Cameroon has requested funding from the World Bank for a project to
strengthen environmental and social capacity in the energy sector (PReCESSE).
Lending instrument
An IDA Credit will be used to finance 100% of total investment costs, excluding financial
charges, custom duties and value added tax. IDA support through the proposed Credit will help
reduce the cost of externalities of large infrastructure projects through compliance with
international best practices for environmental and social standards and procedures.
Project components
The Project would include the following four components:
Component 1 (US$8 million). Strengthening the Ministry of Environment and Protection
of Nature to fulfill its mandate to define, monitor and control environmental and social
obligations of large infrastructure project, in compliance with the environmental law of 1996 and
its implementation decrees. The project would fund: (i) technical expertise in the application of
environmental regulations, (ii) the preparation of sectoral guidelines for the electricity, mining
and transport sectors, in cooperation with relevant departments and private investors, (iii)
harmonization of national environmental standards and procedures with international norms, and
(iv) the development of capacity to manage the EA process and to verify compliance, either
directly or though a delegation of authority to sector ministries.
Component 2 (US$9.5 million). Establishing frameworks to manage social externalities
associated with large infrastructure projects, in compliance with international best practices. The
component would strengthen the ministries of Social Affairs, of Health, of Culture, and of Lands,
each according to its statutory mandates, building on the lessons of the Chad Cameroon Project.
More specifically, the project would (i) provide assistance to the Ministry of Social Affairs,
which is the governmental structure in charge of marginalized populations, including Indigenous
Peoples, and through the Ministry to FEDEC, (ii) build capacity within the Ministry of State
Property and Land Affairs and help harmonizing the national legislation on involuntary
resettlement and land issues, (iii) strengthen the capacity of the Ministry of Culture which is in
charge of monitoring of impacts of projects on physical cultural resources, and (iv) provide
assistance to the Ministry of Health to the better manage the impacts of projects, notably dams,
on the health of on site populations. The project would also strengthen the capacity of civil
society organizations to serve as intermediaries for the concerns of civil society, and as sentries
to ensure the full implementation of national regulations.
Component 3 (US$2.5 million). Supporting the Environment Unit in the Ministry of
Energy and Water to ensure that the environmental and social issues arising from large energy
sector infrastructure projects are addressed in compliance with international best practices. The
Ministry of Energy and Water is the structure responsible for the Energy Sector and is in charge
of overseeing the implementation of the Energy Sector Development Plan. Most particularly, the
project would support the unit to: (i) monitor and advise on the preparation of environmental
assessments and audits and EMPs for energy sector infrastructure projects, prior to their
submission to the Ministry of Environment for review, (ii) trigger and monitor the preparation of
security, social and environmental audits for existing infrastructure (dams, power plants, power
lines, distribution networks), (iii) monitor the implementation of agreed management plans in
agreement with the Ministry of Environment, (iv) contribute to the preparation of environmental
and social sectoral guidelines for the Energy sector, and (v) oversee the preparation of a Strategic
Environmental Assessment for the Energy Sector.
5. Financing
Source:
BORROWER/RECIPIENT
International Development Association (IDA)
Total
($m.)
0
20
20
6. Implementation
Government has designated the MinEP as the focal point for the entire project, and in turn
MinEP has designated a Project Coordinator. This Coordinator will work closely with focal
points designated by the respective institutions involved in the Project’s implementation: (i)
MinEP, (ii) MinAS, (iii) MinDAF, (iv) MinSanté, (v) MinCulture, (vi) NGOs/CBOs, and ((vii)
MinEE. The project would rely on two fiduciary units: (i) MinEP would establish a fiduciary
unit, including a financial management specialist and a procurement specialist, both
competitively recruited, which would cover Components 1 and 2; (ii) Component 3 would rely
on the fiduciary unit established in the Department of Electricity by the Energy Sector
Development Project.
A more detailed summary of implementation arrangements by Component is presented below:
Component 1. Strengthening the MinEP
MinEP is responsible for the technical and fiduciary aspects of this component.
Component 2. Establishing frameworks to manage social externalities
MinEP would ensure the financial management and procurement of the entire component based
on the action plans already prepared by each ministry. The respective ministries would ensure
the technical implementation.
Component 3. Supporting the Environment Unit in the MinEE
The Environmental Unit within the MinEE is responsible for the technical aspects of this
component, while the fiduciary unit established in MinEE for the Energy project is responsible
for the fiduciary aspects.
7. Sustainability
As indicated above, the objective of the project is to improve the management and accountability
of environmental and social issues related to large infrastructure investments in the energy and
mining sectors in Cameroon. The sustainability of this objective would come from: (i) putting
into place a definite legislative and regulatory framework, (ii) providing the Ministry of
Environment with the capacity to permit it not only carry out its normal prerogatives but equally
to be recognized as such, (iii) the creation of a consultation and partnership framework between
different ministries and national organizations, (iv) the recent creation of an environmental fund
and, (v) the possible creation of a more stable and efficient instrument such as an Environmental
Agency during the implementation of the project ring the execution of the project. These five
aspects of sustainability are described as follows:
(i) Putting into place of a stable legislative and regulatory framework. This is certainly the
greatest weakness in the framework for the management of environmental and social
impacts in Cameroon. Even though there is a law on the environment, only the decree on
the EIA was signed in February 2005. Other implementation decrees are still to be
adopted. This project would not only help make up for this deficiency, but it will allow
for the preparation and adoption of texts relative to social impacts of big investments
notably with regard to their impact on health, the indigenous peoples, cultural resources
and the involuntary resettlement of populations on the basis Pollute-Pay Principle (PPP).
(ii) Capacity building for the Ministry of Environment. This Ministry of Environment is a
product of the former Ministry of Environment and Forestry. However, because of the
importance of the forestry in the Cameroon economy, more emphasis was put on the
forestry sector and the environmental sector was neglected. Again, when the Ministry of
Environment and Forestry was split in 2004, the Ministry of forestry retained the very
qualified staff. Since then, nothing has been done in order to strengthen the Ministry of
Environment in spite of its very important and large mandate. This project would
therefore help make up for this deficiency. Besides, the central coordination role
attributed to MinEP within the framework of this project would give it more recognition,
not only by the other administrations, but also by development partners. It should be
noted that the development of this sector has been the subject matter of a few distortions,
notably with regard to the management of environmental impacts in the petroleum sector.
The creation of the CPSP in charge of the monitoring of the implementation of the EMP
for the Chad Cameroon Project is among those distortions which have contributed to
weakening MinEP. This project would make it possible for MinEP, as the national
regulator for the environment to have more credibility.
(iii) Creation of a consultation and partnership framework between different ministries and
national organizations. The role of coordinator given to the MinEP and the involvement
of the four ministries and representative of NGOs allow for the creation of a consultation
and partnership forum, particularly with the NGOs. Such consultations in matters related
to the management of environmental and social impacts would bring about a new
approach and a new dynamics between the actors involved. It should be noted by the way
of example that, the ministries of Culture and Social Affairs are not members of the interministerial Committee for the environment which is in charge of reviewing EIAs and
EMPs; as a result, aspects managed by these ministries are not often properly taken into
account with regard to the management of externalities of big projects. Besides, the
involvement of NGOs would create a new dynamic, which would complete that brought
about by their presence in the management of the environmental fund.
(iv) Environmental Fund. The creation of an environmental fund in Cameroon would enable
the Ministry to have additional long lasting resources to continue with the project
activities, notably with regard to the funding of capacity building.
(v) New instruments to be put into place. It is envisaged that during the mid-term review of
the project, an evaluation would be conducted and in the end, suggestions would be made
to have a more stable and autonomous structure like an Environmental Agency. This
would be an alternative to make up for any persistent weaknesses of the Ministry of
Environment.
8. Lessons Learned from Past Operations in the Country/Sector
Past experience in other countries shows that the establishment of national level regulatory
frameworks for environmental management environmental raises many significant issues that
may also confront the PReCESSE:
 Nearly all African countries have designated an apex institution that is tasked with
ensuring the compliance of large investments with national EA requirements. However,
environmental and social issues associated with large investments are by nature
transversal and thus are of direct concern to many other stakeholders. This multiplicity
of stakeholders is neither exceptional nor deplorable, but rather is inherent to
environmental management, and exclusive focus on the institution in charge of EAs is
not conducive to successful management of environmental and social issues. Thus, a
fundamental design feature of the PReCESSE is to promote collaboration between
theMinistry of Environment and other major stakeholders in environmental
management, each according to its statutory mandate, by providing support to a range of
key institutions.
 Regulators should be institutionally independent from the bodies they regulate, since
otherwise they are confronted with difficult to manage conflicting interests. The
greatest number of exceptions to this principle is in the oil and gas sector, which has led
to a distinct and less open regulatory framework in several countries. Project design
seeks to address this issue for the Energy Sector, by making a clear distinction between
the roles of regulatory bodies and that of investors.
 The implementation of environmental regulations is often subjected to high political
pressure, particularly for large investments with many externalities. Project design
would address this issue by promoting transparency in the management of
environmental and social impacts through disclosure requirements and the constructive
involvement of NGOs, and by conducting studies that show the economic benefits of
compliance with international standards and procedures by facilitating investments from
reputable investors, limiting costly externalities, and by promoting good governance
through better accountability.
 Lack of sustained funding for overseeing the EA process is a very frequent major
constraint, particularly if no cost recovery mechanism is put in place, such as the
collection of fees for EA review and for monitoring EMP implementation, of pollution
permits, and of fines for environmental infractions. The problem is most pronounced
when the EA regulator is a Government Department, and usually less acute when it is
established as a distinct agency or authority. There was a previous attempt to establish
such an agency at the time of CAPECE preparation, but the option was rejected. The
establishment of such an environmental agency in Cameroon is also one of the options
raised in a study made by Royal Haskoning under the CAPECE. It was agreed with
GoC that changes in the institutional framework would not be further discussed during
project preparation and that the immediate focus would be on making the EA
framework fully effective. Nonetheless, the task team will recommend to Government
during appraisal that the project fund a study on the sustainable financing of
environmental regulations that would present GoC with clear options at the time of the
mid-term review.
 The experience from the portfolio of Bank-funded Environmental Support Projects
(ESP) in the 1990s shows that linking support to specific investments or sectors
accelerate capacity building through problem solving. This lesson has been
incorporated into the project’s design where the overarching indicator is a measure of
environmental and social compliance in the energy sector.
 Capacity building for environmental institutions is key to long-term success, but
unusually takes much longer than the duration of a project. It needs to be clearly
recognized at the outset that one operation may be part of a much longer capacity
building process. This concern is addressed, since the PReCESSE will largely benefit
by the capacity developed under the CAPECE.
From the CAPECE
Two key lessons can be learned from the Chad-Cameroon pipeline: (i) environmental and social
management capacity should be developed prior to construction, to avoid being overtaken by
events in the field, and (ii) greater priority must be given to the management of the social
impacts of large projects, most particularly regarding indigenous populations (Ministry of Social
Affairs), the health of on site populations (Ministry of Public Health), physical cultural r
resources (Ministry of Culture), and involuntary resettlement of populations (Ministry of Lands).
With hindsight, another key lesson of the CAPECE is that institutions should be strengthened
according to their statutory mandates. Otherwise, institutional distortions and confusions of
mandates are introduced that are very difficult to correct. Lack of coordination between
stakeholders (due mainly to competition for leadership) can jeopardize project achievements. In
addition, early involvement of civil society is more useful than waiting for criticism during the
implementation.
9. Safeguard Policies (including public consultation)
Safeguard Policies Triggered by the Project
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Pest Management (OP 4.09)
Physical Cultural Resources (OP/BP 4.11)
Involuntary Resettlement (OP/BP 4.12)
Indigenous Peoples (OP/BP 4.10)
Forests (OP/BP 4.36)
Safety of Dams (OP/BP 4.37)
Projects in Disputed Areas (OP/BP 7.60)*
Projects on International Waterways (OP/BP 7.50)
*
Yes
[X]
[]
[]
[]
[]
[]
[]
[]
[]
[]
No
[]
[X]
[X]
[X]
[X]
[X]
X]
[X]
[X]
[X]
By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the
disputed areas
Although the project is not financing any construction and will therefore not require an
Environmental Assessment, it is placed in EA Category B because:
The project does have fiduciary risks. Most particularly:
(a)
the Government may not understand the need for transparency in developing and
implementing environmental management procedures, guidelines and regulations;
(b)
the Bank may be seen as somehow responsible for Government decisions on
future projects in energy, mining, transport, or regional development, having financed the
capacity-building that theoretically would have prevented such things from happening;
(c)
the environmental community at large may suspect the Bank of being an enabler
for rapid development, rather than a promoter of environmentally and socially sustainable
development and a protector of valuable natural, cultural and human resources.
The approach for minimizing these risks would be to:
• get agreement at appraisal with the Government on a document that will present
(i) the broad terms of reference (i.e., the scope of work, in as much detail as is possible at
this stage) for the capacity-building in each component;
(ii)
the working arrangements (e.g., individual specialists, a firm or firms,
secondment of officials to work in teams with the experts, etc.);
(iii)
the review and approval arrangements -- who in the client agencies will review,
comment on, and eventually accept the products of the TA;
(iv)
the responsibilities for the overall direction of each component; and
(v)
the process and responsibilities for decision-making with respect to adoption and
implementation of recommendations and materials produced.
• consult with other stakeholders on a draft of this document, prior to appraisal, including
industry representatives and the environmental/social NGOs.
• publicly disclose the document as if it were a safeguards document, and that there be
arrangements for periodic updates to stakeholders on progress of the TA.
10. List of Factual Technical Documents
To be incorporated during appraisal
11. Contact point
Contact: Yves Andre Prevost
Title: Sr Environmental Spec.
Tel: (202) 473-2136
Fax:
Email: [email protected]
12. For more information contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433
reports (20052008)
Telephone: (202) 458-4500
Fax: (202) 522-1500
Email: [email protected]
Web: http://www.worldbank.org/infoshop
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