Preparing and Using Environmental Management Frameworks

1. Preparing and Using Environmental Management Frameworks World Bank Safeguards Policy Workshop Dushanbe, September 2009

2. Many Variations on the Framework Approach EMF EASMF EAMF EASF ESMF “Social” element of EASMF is not substitute for a Resettlement Policy Framework

3. When to use EMF? • When specific investments cannot be identified prior to Appraisal (eg): • Financial Intermediary (FI) operations • Tranched sectoral investment programs (incl.SWAPS) • Area development projects (rural, municipal, etc.) • Social Funds • Small Grants Programs • NOT when details of investments should be knowable prior to Appraisal (EMF approach is not a substitute for proper project preparation)

4. Purposes of EMF GENERAL: Ensure WB SG requirements are met in sub-projects, while minimizing bureaucracy (no WB case-by-case NOB) SPECIFIC: Identify, characterize, evaluate potential environmental risks of axpected project investments (EA Category; FI with A and/or B) Identify which SG Policies apply to overall project Describe/compare applicable national laws/regulations & WB policies – identify gaps and gap-filling measures Provide clear and practical operational guidance for project implementers (PIU, sub-borrowers): who does what, how and when Assign responsibilities for implementation and monitoring of sub-project level EMPs Serve as the “Environmental Safeguards Document”document for disclosure/consultation prior to Appraisal, and for Legal Agreement

5. EMF is always a PROCESS document EMF is sometimes a POLICY document EMF is sometimes a TECHNICAL document

6. Key Elements of EMF • Project overview (context, objectives, beneficiaries, implementation arrangements) • Sub-project descriptions or eligibility criteria (defined vs. not; narrow vs. broad; identify any exclusions) • Sub-project EA screening guidance (Category A,B,C): criteria, responsibilities, procedures • EA/EMP guidelines, templates for each Category: format, contents, and step-by-step procedures for preparation, disclosure/ consultation, approval) • Maybe “generic” EA/EMP for common types of investments (to be tailored to individual sub-projects)

7. EMF for FI Projects • FI = sub-project funds on-lent by a Financial Intermediary (not a Government Dept. or agency); specifics of investments not known (not knowable!) in advance • FI is responsible for: sub-project screening, ensuring sub-borrowers prepare and implement appropriate EA/EMP for each sub-project – compliant with national and WB requirements; regular monitoring & reporting • WB Appraisal evaluates: • adequacy of relevant national EA requirements; gap-filling • adequacy of proposed EA procedures for sub-projects • capacity of FI and others responsible • measures in project to strengthen EA arrangements/capacity as needed • WB Supervision: • Prior review/NOB of Category A (sometimes also Category B) sub-project EIAs (unless FI assessment indicates this is unnecessary) • Spot-checking of EMF implementation, including site visits EMF FI assessment

8. EMF (project level) Prepared by primary Borrower (“PIU”) Sets out requirements & responsibilities for sub-project-specific EA Acceptable to WB Disclosure and 1 National level consultation on EMF Preparation, consultation and disclosure prior to Project Appraisal PROJECT Sub-project Sub-project Sub-project Sub-project-specific EIA, EA or EMP Prepared by sub-borrower/grant recipient (sub-project implementer), during project implementation EA disclosure and local level consultation (2 for Category A) prior to finalizing PIU responsible for quality/clearance and for monitoring implementation WB prior review of Category A sub-projects; sometimes Category B

9. Integration of EMF into Operational Manual – Key “Entry Points” • Subsidiary loan agreement template • FI capacity assessment / eligibility criteria • FI staffing, capacity building/TA/training • FI roles & responsibilities • Sub-project evaluation criteria (including exclusion list?) • Sample sub-loan agreements • Procurement criteria/contractual obligations (goods and works contracts) • Disbursement procedures • Implementation and impact monitoring indicators (project and sub-project level)

10. E.g.: Exclusion List for an SME Project (Bosnia & Herzegovina) • Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements, or subject to international bans, such as pharmaceuticals, pesticides/herbicides, ozone depleting substances, polychlorinated biphenyls (PCBs), wildlife or products regulated under CITES • Production or trade in weapons or munitions • Production or trade in alcoholic beverages (excluding beer and wine) • Production or trade in tobacco • Gambling, casinos, and equivalent enterprises • Production or trade in radioactive materials (this does not apply to the purchase of medical equipment, quality control (measurement) equipment and any equipment where the IFC considers the radioactive source to be trivial and/or adequately shielded). • Production or trade in unbounded asbestos fibers. This does not apply to purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20%. • Drift net fishing in the marine environment using nets in excess of 2.5 km in length • Production or activities involving harmful or exploitive forms of forced labor/harmful child labor • Commercial logging operations for use in primary tropical moist forest • Production or trade in wood or other forestry products other than from sustainably managed forests • For microfinance activities add • Production or activities involving harmful or exploitive forms of forced labor/harmful child labor • Production, trade, storage, or transport of significant volumes of hazardous chemicals, or commercial scale usage of hazardous chemicals (includes gasoline, kerosene, and other petroleum products) • Production or activities that impinge on the lands owned, or claimed under adjudication, by indigenous peoples, without full documented consent of such peoples

11. Common Issues and Solutions • EF not recognized in national legislation, no national mechanism to approve • Differences between national and WB EA screening criteria, environmental standards • FI lacks capacity for EA screening, environmental monitoring • EF developed specifically for WB-financed project; Implementing Ministry adopts without formal approval • More stringent criteria apply (may require “double” screening) • Capacity building within project and/or outsourcing (limit direct WB involvement to high risk subprojects); Category A sub-projects excluded

12. Common Issues and Solutions • EF not recognized in national legislation, no national mechanism to approve • Differences between national and WB EA screening criteria, environmental standards • FI lacks capacity for EA screening, environmental monitoring • EF developed specifically for WB-financed project; Implementing Ministry adopts without formal approval • More stringent criteria apply (may require “double” screening) • Capacity building within project and/or outsourcing (limit direct WB involvement to high risk subprojects); Category A sub-projects excluded

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