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The World Bank “Safeguard”Policies: An Overview Zagreb, May 2009

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The World Bank “Safeguard”Policies: An Overview Zagreb, May 2009. Overview of Presentation. World Bank SG Policies in context: what are they, why do we have them, where do they come from? Overview of each SG Policy (10 + 1). 1. Safeguard Policies in Context.

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Presentation Transcript
overview of presentation
Overview of Presentation
  • World Bank SG Policies in context: what are they, why do we have them, where do they come from?
  • Overview of each SG Policy (10 + 1)
world bank operational policies
World Bank Operational Policies
  • Based on WB’s Articles of Agreement, General Conditions, & specific policies approved by WB Board
  • Set out in WB Operational Manual (Manual covers OPs, BPs (Bank Procedures), Guidance Notes, etc.)
  • Guide all aspects of WB Operations
  • Cover wide range of topics (e.g. financial terms/conditions of WB loans, “emergency response,” tobacco, Development Policy Lending, Financial Intermediary lending, economic evaluation of investment lending, water resources, procurement, project cycle steps, etc. )
wb safeguard policies 10 1
WB Safeguard Policies (10+1)
  • Environmental Policies
  • OP 4.01 Environmental Assessment
  • OP 4.04 Natural Habitats
  • OP 4.09 Pest Management
  • OP 4.36 Forestry
  • OP 4.37 Safety of Dams
  • Social Policies
  • OP 4.11 Physical Cultural Resources
  • OP 4.12 Involuntary Resettlement
  • OP 4.10 Indigenous Peoples

BP 17.50 Bank Disclosure Policy

  • Legal Policies
  • OP 7.60 Disputed Areas
  • OP 7.50 International Waterways
purpose of the world bank safeguard policies
Purpose of the World Bank Safeguard Policies
  • Do no harm: protect people and environment from adverse impacts
  • Reduce and manage risk for the Client and for the WB
  • Do good: enhance social equity and environmental sustainability
  • Respond to a world-wide constituency
environmental and social due diligence
Environmental and Social “Due Diligence”
  • WB Management’s fiduciary responsibility to its shareholders (along with Financial Management, Procurement): assurance that all reasonable measures have been taken to ensure lending is environmentally/socially sound
  • Applies to sub-projects within projects
  • Applies to all project components and investments regardless of source of financing
  • “Safeguard Documents” = Assessments and plans required by SG policies (publicly disclosed)
key roles who does what world bank
Key Roles – Who does What?World Bank
  • WB Board (representing Donor & Borrowing Countries) identifies needs and approvepolicies
  • Operations Policy and Country Services Unit (OPCS) and Legal Dept (LEG): draft OPs, BPs, set Bank-wide standards for interpretation and compliance, report to Management and Board
  • ECA Region Safeguards Team: (in consultation with Task Team and as needed with Senior ECA Management and/or OPCS, LEG): for each project, determines which OPs are triggered, appropriate EA category & specific compliance requirements; approve “Due Diligence” instruments (may delegate); clear Appraisal and Legal Documents;
  • WB Project Task Team: work with Borrower and SG Unit to ensure appropriate triggering/screening; advise Borrower on compliance throughout project cycle; evaluate “Due Diligence” instruments and Client capacity; disclosure (Infoshop); verify/ report to Management throughout project cycle
  • Quality Assurance Group and Internal Evaluation Group: Review performance of WB Staff and Management and quality of operations vis a vis SG (application, compliance, implementation, impact)
  • Inspection Panel: Independent body, investigates complaints by affected people; Reports independently (makes recommendations) to WB Board
key roles who does what borrower client
Key Roles: Who Does What?Borrower/Client
  • Implementing Agency/Entity: responsible for preparation, disclosure/consultation and implementation of “Due Diligence” instruments; reporting to Government and WB
  • WB’s official Government counterpart(e.g., MoF): legal commitment to implement DD instruments
  • Sub-project grant/loan recipients: specific obligations as spelled out in sub-grant or sub-loan agreements
  • Contractors/suppliers/consultants: specific obligations as spelled out in contracts
  • Public (civil society,“Project Affected Persons”, NGOs): advise on project design (consultations); raise legitimate grievances and complaints through appropriate channels
who influences the safeguard policies
Who Influences the Safeguard Policies?

WB Management

WB Board







Project Beneficiaries

Affected Persons

cross cutting principles of sg policies
Cross-cutting Principles of SG Policies
  • Avoid negative impacts where possible; otherwise minimize, reduce, mitigate, compensate (in that order)
  • Match level of review, mitigation and oversight to level of risk and impacts
  • Inform the public and enable people to participate in decisions which effect them
  • Integrate environmental and social issues into project identification, design and implementation
  • Strengthen Borrower capacity

= Ingredients of Sustainable Development

world bank safeguard policies three part format
World Bank Safeguard Policies: Three-Part Format
  • Operational Policies (OP) – concise statement of policy objectives and operational principles including the roles and obligations of the Borrower and the Bank
  • Bank Procedures (BP) – Mandatory procedures to be followed by the Borrower and the Bank
  • Good Practice (GP) – Non-mandatory advisory material
op bp 4 01 environmental assessment objectives
OP/BP 4.01: Environmental AssessmentObjectives:
  • To inform decision makers of the nature of environmental and social risks
  • To ensure that projects proposed for Bank financing are environmentally and socially sound and sustainable (promote positive impacts, avoid/mitigate negative impacts)
  • To increase transparency and participation of stakeholders in the decision-making process as one essential element
op bp 4 01 environmental assessment key elements
OP/BP 4.01: Environmental AssessmentKey elements:
  • Applies to all Investment lending (not Development Policy Lending); triggered for almost all investment projects
  • Umbrella EA policy: subsumes elements of others
  • Based on screening of operations (Category A, B, C, FI)
  • Scope of EA issues (integrated env & social); types of EA instruments (based on risks and on type of lending)
  • Bank and Borrower responsibilities (incl. consultation and disclosure)
  • Operational Annexes

(more details later)

op 4 04 natural habitats
OP 4.04 Natural Habitats


  • Protect, maintain, restore natural habitats and their biodiversity; Ensure sustainability of services and products which natural habitats provide to human society
  • Precautionary approach to natural resources management
op 4 04 natural habitats key elements
OP 4.04 (Natural Habitats)Key elements
  • no WB support for significant conversion or degradation of criticalnatural habitats* (if unavoidable, compensation through additional protected area of equivalent value)
  • Precautionary approach to natural resource management in interests of sustainable development
  • Where potential for impacts exists, assess/address Client capacity to implement protection
  • Preparation/appraisal/supervision to include qualified experts
  • Take into account views/roles/needs of local communities, NGOs; involve in planning, implementation (incl. PA management), monitoring; support local conservation incentives

*Definitions in Annex A

bp 4 04 natural habitats
BP 4.04 (Natural Habitats)
  • Any project with potential for significant conversion or degradation of natural habitat = Category A
  • Other projects involving natural habitats = Category A or B
  • Use of “compensation” approach requires V.P. approval
  • Costs of compensatory conservation (offsets) are included in project financing
op 4 09 pest management
OP 4.09 Pest Management


  • Support Integrated Pest Management (IPM) approach for sustainable agriculture and health (promote use of biological/ environmental/ agronomic controls, reduced reliance on synthetic chemicals)
  • Reduce human exposure and health risks
  • Help develop national capacity for IPM and pesticide regulation/monitoring
op 4 09 pest management key elements
OP 4.09 (Pest Management)Key Elements
  • Assess issues through EA process (mitigation through EMP or separate Pest Management Plan depending on scale)
  • Pesticides may be financed in context of IPM (criteria for pesticide selection and handling)
  • No BP 4.09 - Pest Management Handbook
op 4 10 indigenous peoples
OP 4.10: Indigenous Peoples

IP – distinct, vulnerable, social and cultural group attached to geographically distinct habitats or historical territories, with separate culture than the project area, and usually different language


  • To foster full respect for human rights, economies, and cultures of IP
  • To avoid adverse effects on IP during the project development
  • One of the most controversial and contested OPs in other regions; few applications in ECA (Siberia only)
opn 4 11 physical cultural resources
OPN 4.11 Physical Cultural Resources


  • Physical Cultural Resources (PCR) are identified and protected in World Bank financed projects
  • National laws governing the protection of physical cultural property are complied with
  • PCR includes archaeological and historical sites, historic urban areas, sacred sites, graveyards, burial sites, unique natural values
op 4 11 physical cultural resources key elements bp 4 11
OP 4.11 (Physical Cultural Resources)Key Elements & BP4.11
  • Implemented as integral element of EA (EMP to include PCR Plan as needed, or “Chance Finds” provision)
  • Typically triggered by:
    • any project involving significant scale excavation, earth moving, flooding
    • any project in or near PCR site recognized by borrower
  • Archaeological survey to identify/characterise PCR (or to confirm none are present)
  • Mitigation may range from full protection to salvage & documentation (Borrower decides)
op 4 12 involuntary resettlement
OP 4.12 Involuntary Resettlement


  • Minimize displacement
  • Treat resettlement as a development program
  • Provide affected people with opportunities for participation
  • Assist displaced persons in their efforts to improve their incomes and standards of living, or at least to restore them
  • Assist displaced people regardless of legality of tenure
  • Pay compensation for affected assets at replacement cost
  • The OP Annexes include descriptions of Resettlement Plans and Resettlement Policy Frameworks

Details in following presentation

op 4 37 safety of dams objectives key elements
OP 4.37 Safety of DamsObjectives, Key Elements
  • To protect downstream populations and ecosystems from consequences of dam failure
  • Triggered if WB project finances dam construction or rehabilitation, but also when performance of a WB- financed project is dependent on an existing dam*
  • Distinguishes between large and small dams:
    • 15 m +, or 10 m + with other risk factors
    • Reservoir size
    • Likelihood of later increase in height/size
  • Requires dam independent panel to assess design/construction; detailed plans for construction/quality assurance; instrumentation, operation & maintenance, emergency preparedness

*due diligence requirements more modest in this case

op 4 36 forests
OP 4.36 Forests


  • Forests are managed in a sustainable manner
  • Significant areas of forest are not encroached upon
  • The rights of communities to use their traditional forest areas in a sustainable manner are not compromised
op 4 36 forests key elements bp
OP 4.36 ForestsKey Elements & BP
  • Applies to projects which may have impact on health and quality of forests; projects which aim to bring about change in management, protection or utilization of forests
  • Applies to natural forests & plantations
  • OP 4.04 applies, also to critical downstream habitats which may be affected
  • Plantations preferred to be made on unforested sites
  • Attention to risk of invasive species
  • Commercial harvesting may be financed for areas not identified as critical forests/natural habitats
op 7 60 projects in disputed areas
OP 7.60 Projects in Disputed Areas
  • Legal Safeguard Policy
  • The Bank may support a project in a disputed area if governments concerned agree that, pending the settlement of the dispute, the project proposed for one country should go foreword without prejudice to the claims of the other country
op 7 50 projects on international waterways legal sgp
OP 7.50: Projects on International Waterways (Legal SGP)
  • Objective: to ensure projects will neither affect the efficient utilization and protection of international waterways, nor adversely affect relations between the Bank and its Borrowers and between riparian states
  • Triggered by any project which involves utilization of, or release of effluents into, an international waterway, regardless of scale, but exemptions may be approved in some cases
  • Legal Safeguard Policy – requirement for notifying other riparian States
bp 17 50 disclosure policy disclosure handbook
BP 17.50 Disclosure Policy/Disclosure Handbook
  • Supports decision making by the Borrower and Bank by allowing the public access to information on environmental and social aspects of projects
  • Mandated by six safeguard policies that have specific requirements for disclosure
  • In country:
    • Before project appraisal in local language and in English
  • World Bank INFO-Shop:
    • Before project appraisal in English (documents can be in draft but must meet WB standards)
consultation beyond disclosure
Consultation (beyond disclosure)
  • Mandated by Environmental Assessment, Involuntary Resettlement and Indigenous Peoples Policies
  • A two-way process in which beneficiaries provide advice and input on the design of proposed projects that affect their lives and environment
  • Promotes dialogue between governments, communities, NGOs and implementing agencies to discuss all aspects of the proposed project
  • At least 2 consultations for a Category A Project (or Sub-project) and one consultation for a Category B Project (or Sub-project) before appraisal (or sub-project approval)