1. Whose ESP (e.g., would it be AIIB' or ADB ' or the Commercial Bank's) would be applicable to this
Project?
Given the tight schedule of 3 months, I would ask Task Team Leader to organize a meeting with Lenders
(ADB, Commercial Bank) and Sponsor to discuss the alignment of ESPs of each IFIs. In this meeting, AIIB
shall seek to cooperate with them to agree a common approach to appraisal, environmental and social
management requirements, monitoring and reporting, and handling of grievances regarding the current
Project. Usually, based on the previous experience with IFI the International Energy Developers Limited (the
Sponsor) could also established robust ESMS based on the various IFIs’ ESPs. In case of ADB is a lead cofinancier, then ADB’s SPS 2009 could be applied in lieu of AIIB’s ESP. We also review ADB’s SPS in terms of
that: (i) it is consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of
AIIB’s ESP and the relevant ES Standards; and (ii) the monitoring procedures that are in place are
appropriate for the Project.
2. What would be the ES category for this Project (A, B, C or FI)? And what ES Standards would apply?
Please include the rationale for your choice.
ESDD shall include assessing safeguard issues in Site number 1 through field visits and desk reviews as well
as through examining relevant safeguard documents (such as ESIAs, ESMPs, resettlement plans, Indigenous
People’s plans). Through its due diligence processes, we shall confirm that all potential social risks are
identified. If they cannot be avoided, then we shall ensure that Sponsor applies an appropriate mitigation
measures. I see here number of significant social risks that leads to categorise the project as Category A in
respect to social safeguards. These significant social risks include past experience of land expropriation per
the local Government’s regulations that resulted forced evictions within the PAPs, and also expected land
acquisitions and involuntary resettlement risks, inadequate informed consent, low compensation, large
labour influx that associated with the significant SEA/SH risks, and labour management risks.
3. What are the key social risks and impacts that need to be addressed by the sponsor to secure the AllB
funding?
The Bank requires the Client to conduct an environmental and social impact assessment (ESIA) or
equivalent environmental and social assessment, for each Category A Project, and to prepare an
environmental and social management plan (ESMP) or environmental and social management planning
framework (ESMPF) (or other similar Bank-approved documentation), which is included in the ESIA report
for the Project.
The sponsor shall first of all shall develop and implement ESMS in accordance with the general
requirements of AIIB’s ESS1 or ADB’s SPS specific for this project. The company’s ESMS will detail processes
to be implemented to provide adequate management & supervision of their contractors.
As the Sponsor has already competed the construction works in site number 1, AIIB shall require the
Sponsor to conduct ex-post resettlement social audit and corrective actions for this site 1. Additionally, the
Sponsor is required to develop ESIA, LARP, ESMP (for operational phase), Social Impact Assessment will be
required for site number 1. As the site number 2 is in the design stage and number of involuntary
resettlement cases are expected and known, then we shall require from the Sponsor to develop
resettlement plan (LARP), LARF to compensate affected persons per entitlement matrix set in the
LARF/LARPs. Additionally, the Sponsor is required to develop ESIA, LARP, ESMP (for operational phase), and
Indigenous Peoples Plan (IPP) or Community & Ethnic Group Development Plan.
4. What should the Sponsor do in terms of stakeholder engagement? How should the Sponsor manage
or deal with the CSO, pending court cases, retaliation by the Govt. and local com1nunity's opposition to
the Project?"
The sponsor shall prepare a SEP that involves steps to identify, analyze and mapping a Project’s
stakeholders. This process is important to inform the design of the SEP, particularly in developing the
Project’s approach to consultation and communication. This involves identifying relevant Project
stakeholders or groups of stakeholders, characterizing the key stakeholder issues and concerns, and
mapping the Project stakeholders to determine the appropriate level of engagement for each stakeholder
or stakeholder group.
The Project Proponent is required to put meaningful consultation processes into practice and to engage
with communities, groups, or people affected by proposed projects, and with civil society through
information disclosure, consultation, and informed participation in a manner commensurate with the risks
to and impacts on affected communities.
As this project is A category AIIB's task team shall participate in consultation activities to understand the
concerns of affected people and ensure that such concerns are addressed in project design and safeguard
plans. The views and concerns of the stakeholders derived during the consultations shall be embedded in
the project designs if appropriate and reasonable.
5. What should be AIIB's advice with respect to the Sponsor’s proposed approach to using migrant
labor?
The sponsor shall develop a specific labor influx plan that shall be part of the ESMP. Regular training shall
be conducted among migrant workers to avoid SEA/SH in the nearby community.
6. What are the requirements for a project level GRM? Is the Sponsor required to have any other GRM?
Besides the project level GRM, Sponsor shall established an accessible, understandable and transparent
GRM for raising Project workplace, including gender-related concerns such as sexual exploitation, abuse
and harassment. My experience shows that the sponsor shall also to establish contractor’s GRM to raise
their concerns.
7. What are the disclosure requirements that the sponsor is required to follow?
The sponsor shall disclose all the E&S documents in timely manner in its websites and through public
consultation consultation meetings through disseminating leaflets and details of the expected E&S risks and
project activities
8. Briefly describe the Gender aspects in this project and how this project could be appraised as gender
inclusive.
The sponsor shall develop special mitigation measures to avoid Gender-based violence. These measures
shall include developing a Code of Conduct and special regular training among workers. The sponsor will
provide specific training to grievance officers and general awareness to employees on GBV, including sexual
harassment and bullying, and engagement with women employees on their concerns during the project
implementation.
9. What is the ES institutional set up that you will propose for implementation, supervision and
monitoring, what are the reporting requirements you will seek from sponsor."
The sponsor shall, first of all, develop and implement ESMS in accordance with the general requirements of
AIIB’s ESS1 or ADB’s SPS specific to this project. The company’s ESMS will detail processes to be
implemented to provide adequate management & supervision of their contractors. Additionally, ESMPs
both at construction and operational level shall be developed and implemented throughout the project
cycle.
10. What types of ES instruments (documents) the Sponsor is required to prepare to secure the AIIB's
funding?
As the Sponsor has already completed the construction works in site number 1, AIIB shall require the
Sponsor to conduct an ex-post resettlement social audit and corrective actions for this site 1. Additionally,
the Sponsor is required to develop ESIA, LARP, and ESMP (for the operational phase), Social Impact
Assessment will be required for site number 1. Site number 2 is in the design stage and the number of
involuntary resettlement cases is expected and known, then we shall require the Sponsor to develop a
resettlement plan (LARP), LARF to compensate affected persons per entitlement matrix set in the
LARF/LARPs. Additionally, the Sponsor is required to develop ESIA, LARP, ESMP (for construction and
operational phase), and Indigenous Peoples Plan (IPP) or Community & Ethnic Group Development Plan.
Please discuss the scope/contents of those instruments.
Provide a brief Response to the following Policy Related Questions:
1.
Will the potential key ES risks and impacts, and the type and scope of instruments be different if
the same Project has been operating for the past two years and the sponsor wants to refinance to reduce
the debt burden?
If the sponsor has been working successfully in compliance with the ADB's or AIIB's ESPs then this option
can be reviewed. But as of the provided information regarding the involuntary resettlement, I may say that
this sponsor's E&S performance was not adequate.
2. Briefly discuss your understanding on the following potential social risks, impacts, and feasible
mitigation measures related to:
1. (a) Loss of Access to Assets or Resources or Restrictions on Land Use; As seen from the provided
information, there are social risks associated with IR and LAR including past experience of land
expropriation per the local Government’s regulations that resulted in forced evictions within the PAPs,
and also expected land acquisitions and involuntary resettlement risks, inadequate informed consent,
low compensation. These risks can be mitigated through developing conducting ex-post resettlement
social audits and corrective actions for the past affected persons in site 1 and developing a resettlement
plan (LARP), LARF for the expected affected persons per entitlement matrix set in the LARF/LARPs.
2. (b) Gender-Based Violence; the sponsor shall develop special mitigation measures to avoid Genderbased violence. These measures shall include developing a Code of Conduct and special regular training
among workers. The sponsor will provide specific training to grievance officers and general awareness
to employees on GBV, including sexual harassment and bullying, and engagement with women
employees on their concerns during the project implementation.
3. (c) Discrimination The company is committed to avoiding all forms of discrimination against its
employees, based on the age, gender, sexual orientation, health, race, nationality, political opinions, or
religious beliefs of its counterparties. The requirements of non-discrimination and equal opportunities
will be extended to all contractors and subcontractors as part of contractual obligations.
4. (d) Cultural Resources. Screening of the site conditions and proposed Project investments point to
potential impacts on cultural resources and heritage (spiritual forest areas and cemeteries), and possible
occupational health and safety risks.
(e) Associated Facilities. ESDD shall also identify based on the screening of the site conditions and proposed
Project investments associated facilities. There are certain criteria per AIIB’s and ADB’s ESPs to consider as
AF. In order to consider the project as AF, all these criteria shall meet. Identification of AF shall be conducted
in all the project phases (implementation, appraisal, and implementation). In my experience, there are cases
where during the project implementation, AF has been identified, and preparation of relevant safeguards
documents is required.