Glenn Morgan
RSA, LAC Region
April 18, 2013
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Discuss safeguard policy requirements for
considering a project’s area of influence (AOI)
Introduce rationale and key concepts for AOI
Present some examples of project
considerations for defining AOI
Summarize important challenges and
recommendations
AOI in Bank Policy
OP 4.01 Environmental Assessment: Environmental Assessment
evaluates a project's potential environmental risks and impacts in
its area of influence…
Area of Influence OP 4.01, Annex A, para. 6: The area likely to be
affected by the project, including all its ancillary aspects, such as
power transmission corridors, pipelines, canals, tunnels, relocation
and access roads, borrow and disposal areas, and construction
camps, as well as unplanned developments induced by the project
(e.g., spontaneous settlement, logging, or shifting agriculture along
access roads).
The area of influence may include, for example, (a) the watershed
within which the project is located; (b) any affected estuary and
coastal zone; (c) off-site areas required for resettlement or
compensatory tracts; (d) the air-shed (e.g., where airborne pollution
such as smoke or dust may enter or leave the area of influence;
(e) migratory routes of humans, wildlife, or fish, particularly where
they relate to public health, economic activities, or environmental
conservation; and (f) areas used for livelihood activities (hunting,
fishing, grazing, gathering, agriculture, etc.) or religious or
ceremonial purposes of a customary nature.
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OP4.12, para 4
This policy applies to all components of
the project that result in involuntary
resettlement, regardless of the source of
financing. …It also applies to other
activities resulting in involuntary
resettlement, that in the judgment of the
Bank, are…
(a) directly and significantly related to
the Bank-assisted project;
(b) necessary to achieve its objectives
as set forth in the project documents;
and
(c) carried out, or planned to be
carried out, contemporaneously with
the project.
IFC Performance Standard 1
Associated facilities**are those
activities or facilities
(a) that are not funded as part of
the project; and
(b) … would not have been
constructed or expanded if the
project did not exist and without
which the project would not be
viable
A
Test
* * Associated facilities may include railways, roads,
captive power plants or transmission lines,
pipelines, utilities, warehouses, and logistics
terminals.
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The Project
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Area of Influence (IBRD/IDA OP 4.01)
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Project Area (IBRD/IDA OP 4.10)
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Ancillary aspects (IBRC/IDA, OP4.01)
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Associated facilities (IFC, PS1)
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Related/Other activities (IBRD/IDA, OP4.12)
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Induced and cumulative impacts
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Contemporaneous
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Why is AOI important?
• Provides a logical structure for defining
project boundaries of assessment and
accountability, including…
• the spatial, temporal and thematic
boundaries of the project which is essential
for issues scoping, screening and defining
the content of environmental and social
impact assessments
• the boundary conditions for conducting
economic analysis
• The formulation of a structure for public
consultations and stakeholder engagement
- where and with whom to consult?
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Bank Projects have changed over time: no longer 100%
financed, 100% of the time!
◦ Bank no longer involved in 100% of the development
intervention
◦ Bank co-finances operations with others
◦ Bank finances more programmatic interventions
◦ Bank often times comes in late in the process where some
activities are already underway
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Third party adherence, compliance and enforceability
when the Bank or Borrower is not affiliated with the
associated, ancillary or linked activities or facilities
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No standard methodology but AOI usually incorporates
two concepts.
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AOI = Area of direct impacts + Area of Indirect impacts
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Area of Direct Impacts: usually considered the physical
footprint of the project such as right-of-way, construction
sites, work staging areas, and areas affected during the
operational phase (e.g., new traffic patterns)
Area of Indirect Impacts: more difficult to define precisely
but includes areas which may experience induced or
cumulative changes in combination with activities not
under the direct control of the project
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Defined by its objectives?
Defined by its components?
Defined by its activities?
All three?
AOI is typically defined by the project
activities that have a physical footprint
In some cases though AOI is ambiguous and
should be defined by the project objectives
and expected outcomes
Project and its Ancillary Aspects
Quarry
Resettlement site
New transmission
Coal
mine site
Coal handling
facility
Road
Existing
sub-station
Ash storage
Power plant field
facility
Agricultural
Road
Workers’ camp
Neighborhood
Resettlement site
Village
Landfill for
ash
disposal
Defining Area of Influence
Road example
 Fixed corridor approach: e.g., corridor 1 km from the center line
• Advantage: it is simple, relatively easy to understand and measure;
data is usually easier to obtain and the bounds
• Disadvantage: the corridor is usually arbitrary and does not relate
well to the notion of indirect impacts it usually does not provide a
useful structure for consultations nor does it tend to capture the all
indirect or cumulative risks
 Jurisdictional or neighborhood approach: include the
jurisdictions through which the road passes
• Advantage: provides a better structure for consultations; easy to
identify; people relate to jurisdiction in which they live
• Disadvantage: may be a much larger area than needed; logistical
difficulties for participation; data may be difficult to come by for
larger area
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Catchment or service area approach: includes the
local or regional arterial network which are impacted
by a project
• Advantage: more nuanced, takes into account the
integrated nature of the network and its relationship
to the planning area for the project
• Disadvantage: harder to define; no natural
boundaries on the ground; more conceptual
Issues approach: different AOI depending on the
problem being evaluated
• Air quality; Land use change; Noise; Congestion and
traffic forecasting; wildlife corridors
• More focused on specific issues but less clear as there
are multiple spheres of influence
• Area of influence varies by type of potential risks and
impacts (e.g. noise; air quality; land use) as well as by type
of intervention (e.g., energy, transport, land administration)
• How to address technical assistance or other projects that
do not have a physical footprint
• Different approaches in urban vs. rural settings
• How do deal with project that are multi-sectoral or national
in scope
• Whether and how to involve stakeholders in the refining of
the definition?
• How to treat a “linked” activity or facility can be challenging
 Often difficult to identify early in project preparation
 When identified late, may require significant revisions or additions
to project documents
 Disclosure issues
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These are difficult concepts to apply in practice and the
answers are not always clear, requiring a case-by-case
approach
Use a common sense approach and consider project’s
areas of control; influence and concerns when
considering assessment and accountability boundaries
Define AOI in a similar way for project design and
safeguard instruments
Explain the situation and approach, including
consultation and disclosure process that was followed,
in project documents