Safeguard Policies:
Introduction and Overview
Agi Kiss
Safeguards Coordinator,
Europe and Central Asia Region
WB Safeguards Workshop
Ankara, March 2010
1
OUTLINE
Safeguard Policies Objectives and principles
Overview of Safeguards Policies (10 + 1)
Details:
OP 4.01 (Environmental Assessment)
and
OP 4.12 (Involuntary Resettlement)
Procedures: who does what and when
2

Do no harm: protect people and
environment from adverse impacts

Do good: enhance social equity and promote
environmental sustainability

Reduce and manage risk for the Client and
for the WB

Respond to a world-wide constituency
3
2. Overview of Safeguard
Policies
4
Environmental Policies
• OP 4.01 Environmental Assessment
• OP 4.04 Natural Habitats
• OP 4.09 Pest Management
• OP 4.36 Forests
• OP 4.37 Safety of Dams
Legal Policies
• OP 7.50 International Waterways
• OP 7.60 Disputed Areas
Social Policies
• OP 4.11 Physical Cultural Resources
• OP 4.12 Involuntary Resettlement
• OP 4.10 Indigenous Peoples
BP 17.50 Bank Disclosure Policy
Not all environmental/social issues of concern are covered by Safeguard OPs
SG apply to all Investment Operations, and to any Investment
sub-components within Development Policy Operations
5
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
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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
Plus:
•EA and Involuntary Resettlement Sourcebooks
•Pest Management Guidebook
•Regulatory Framework for Dam Safety
•Pollution Prevention Abatement Handbook
•OPCS Guidance Notes
6
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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
7
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
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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 provide mechanism for
participation of stakeholders in the decision-making
process for the project
8
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
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Applies to all types of Investment lending
Development Policy Lending);
(not to
Triggered: for any investment with a footprint, and for directly related TA
Applies to all elements of a WB-financed operation (not only
WB-financed activities)… and to directly linked investments
Umbrella EA policy: comprehensive and subsumes elements of others
WB does not finance activities contrary to national
environmental legislation or international treaties (should be
identified in EIA)

Based on screening of operations based on risk level

Sets out required procedures; provides guidance on
substance

EA Instruments
A, B, C) and Project Structure (Category FI)
(Category
(details later):
◦ Environmental Impact Assessment
◦ Environmental Management Plan
◦ Environmental Management Framework
9
Objectives:




Protect, maintain, restore natural habitats and their
biodiversity;
Ensure sustainability of services and products which
natural habitats provide to human society
Involve local communities in planning, implementation
Precautionary approach to natural resources
management
10

Triggered by: investments in, near or likely to affect natural ecosystems

Distinguishes between Critical and Non-Critical natural habitats (based on
criteria, not list):
(terrestrial, riverine, coastal) – even if effects are expected to be positive.
Especially but not exclusively relating to Protected Areas, threatened/endangered
species
◦ no WB support for significant conversion/degradation of critical natural habitats
◦ Project-financed mitigation, including compensatory “set-aside” for unavoidable significant
conversion/degradation of non-critical natural habitats

Assessment/mitigation within EIA/EMP (no separate “NH Plan”)

Mitigation includes Client capacity to implement protection

Preparation/appraisal/supervision to include qualified experts
11
Objectives:


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
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
Reduce environmental contamination
Help develop national capacity for IPM and pesticide
regulation/monitoring
12
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
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Triggered by: procurement of pesticides; projects likely to
introduce, increase or change use of pesticides
Assess issues through EA process
Mitigation through EMP or separate Pest Management Plan
depending on nature and scale of issues

Pesticides may be financed in context of IPM (following criteria for
pesticide selection and handling)

No BP 4.09 - Pest Management Handbook (online)
13
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
Objectives:


To foster full respect for human rights,
economies, and cultures of IP
To avoid adverse effects on IP during the
project development
Triggers: Projects affecting an area currently or historically occupied
by IP
One of the most controversial and contested OPs insome regions;
few applications in ECA (Siberia only)
14
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Objective: avoid/mitigate adverse impacts on PCR (sites, structures, natural
features of historical, paleontological, religious, other cultural signficance
Triggered by: investments in or near recognized cultural heritage sites (or
very culture-rich areas)
Assessment and mitigation through EA/EMP (archaeological
survey, PCR plan if needed)
Mitigation may range from full protection to salvage & documentation.
“Chance finds” provision for items discovered during implementation
Reliance on national authorities and laws
15
Objectives:

Avoid/minimize displacement where feasible

Assist displaced persons to improve (or at least restore) preproject living standards (resettlement as a development
program

Promote community participation in planning &
implementation of resettlement

Provide assistance to people regardless of legality of land
tenure
16
Objectives:
 Contribute to sustainable development --
◦ meet demand for forest products and services through
sustainable forest management
◦ Protect/maintain rights of communities to use their traditional
forest areas in a sustainable manner

Protect global environmental services and values of
forests:
◦ avoid encroachment on existing significant areas of forest
◦ ensure forest restoration projects maintain/enhance
biodiversity & ecosystem function
17
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Triggers:

Applies to natural forests & plantations
Assessment and mitigation: integrated in EA/EMP
Forest harvesting can be financed:


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
◦ projects involving forest restoration, plantation development, changes in
forest use, management or protection
◦ other projects which could have negative impact on health and quality of
existing forests (overlap with OP 4.04)
◦ by, or with meaningful participation of, local communities
◦ in areas not identified as critical forests/critical natural habitats
◦ If consistent with principles & criteria of responsible forest management (or
adhering to action plan to achieve it)
Attention to risk of invasive species
Beyond Safeguards: stresses integration of sustainable forest
management in policy dialogue, CAS, etc.
(Complexity of this revised OP a result of
extensive international consultation?)
18

Objectives: protect downstream populations, ecosystems and investments from
consequences of dam failure; ensure dams are properly
designed/constructed/monitored

Triggered by:

Assessment and mitigation requirements distinguish between large vs.
small dams, i.e.:
◦ WB project financing for dam construction or rehabilitation (full application);
◦ performance of a WB- financed project is dependent on an existing dam (“due
diligence”)
◦ Dam height: (15 m +, or 10 m + with other risk factors
◦ Reservoir size
◦ Likelihood of later increase in height/size

Construction of new large dam requires:

Due diligence for existing dams:
◦ independent panel of experts to assess design/construction;
◦ detailed plans for implementation including emergency preparedness plan
◦ Pre-qualification of bidders
◦ Periodic safety inspection after completion
◦ Inspect/evaluate safety status
◦ Review/evaluate owners’ operation & maintenance procedures
◦ Written report of findings, recommendations for remedial measures
19

Objective: ensure projects will not adversely affect:
 the efficient utilization and protection of international waterways
 between the Bank and its Borrowers and between states

Triggered by: any project which involves use or potential pollution of an international
waterway (regardless of scale; upstream or downstream)
E.g.s: hydropower, irrigation, flood control, navigation, drainage, wastewater/sewerage, industrial
facilities... and detailed design and engineering for all of the above

Exemptions:
 rehab of existing systems which won’t adversely change water quality/quantity (no expansion);
 water source surveys & feasibility studies
 Tributary running exclusively in most downstream state


Ongoing revision: to add de minimus clause, groundwater
Action required:
 early notification of other riparian States (by Borrower or by Bank on behalf of Borrower), with details
on potential impacts;
 Ascertain whether any applicable treaties or other agreements exist

If other Riparian(s) object: goes to LEGVP & MD for decision
20

Objective: ensure projects will not adversely affect:
 Relations between Bank and member countries
 Relations between

Triggered by: Project area known to be disputed; Borrower involved in border
disputes

Action required:
Project may proceed if governments concerned agree. MOP bears a disclaimer that
Bank doesn’t intend to prejudice the final determination of the dispute
21
OP/BP 4.01: Environmental Assessment
EA
Category
A
Triggers/Type of Impact
EA
Instrument
Broad, diverse, potentially
irreversible impacts; major
resettlement; conversion of natural
habitats; hazardous materials
Full EIA;
B
Narrower, geographically limited,
readily identified and can be
mitigated
Partial EA, EMP, EMF,
Env. Audit, Hazard
Assessment, etc.
C
Negligible or minimal and easily
mitigated
None
FI
Unknown at time of Appraisal (subprojects)
EMF + subprojectspecific EIA, EMP, etc.
Strategic EA (for
programs)
EA Category also depends on the location of the project: e.g. any
special characteristics and sensitivities of the project site
For non-FI Category projects involving sub-projects: overall project category is
determined by highest category among potential sub-projects
22
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large-scale conversion or degradation of natural
habitats
extraction, consumption, or conversion of
substantial amounts of forest
direct discharge of pollutants resulting in
degradation of air, water or soil
production, storage, use or disposal of hazardous
materials and wastes
risks associated with the proposed use of
pesticides
Significant resettlement or other major social
impacts
23
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Large-scale infrastructure: ports and harbor development,
transport (rail, road and waterways), large- scale water
resources management (river basin development, water
transfer); dams and large reservoirs, hydropower and thermal
power, extractive industries and oil and gas transport;
Large-scale agriculture, irrigation, drainage and flood control,
aquaculture; agro industries, and production forestry;
Major urban projects involving housing development, water
treatment, wastewater treatment plants, solid waste collection
and disposal;
Industrial pollution abatement, hazardous waste management,
industrial estates, manufacture and large-scale use of
pesticides; and
Projects that, regardless of scale or type, would have severe
adverse impacts on critical or otherwise valuable natural or
cultural resources.
24
Plovdiza Dam, Bulgaria
Storage of Chemicals, Kosovo
Rijeka Port, Croatia
25

Full EIA (as set out in OP 4.01, Annex B:
◦ EA compares project feasible alternatives and their related
impacts (including “No action”)
◦ EA addresses indirect and cumulative impacts

EIA prepared by independent party (not involved in the
project preparation or implementation)

2 public consultations on EIA (on TOR, draft Report)

Subject to US Government’s “Pelosi Amendment” (EIA
disclosed 120 days before Board presentation)

Executive Summary of EIA sent to WB Board
26
“solid B”
almost C
almost A
Requires detailed
EIA but doesn’t
trigger special
“Category A”
procedural
requirements
Requires
Partial EA or
free-standing
EMP
“Checklist” EMP;
Environmental
standards
27


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Small-scale infrastructure projects: power transmission
and distribution networks, rural electrification, mini (run
of the river with no major water impoundments) or microhydropower projects, small-scale clean fuel fired thermal
power plants, renewable energy (other than hydropower),
energy efficiency and energy conservation, rural water
supply and sanitation, road rehabilitation, maintenance
and upgrading; telecommunications, etc.;
Health care service delivery, HIV-AIDS, education (with
limited expansion of existing schools/buildings),
repair/rehabilitation of buildings when hazardous
materials might be encountered (e.g., asbestos, stored
pesticides); and
Small-scale irrigation, drainage, agricultural and rural
development projects, rural water supply and sanitation,
watershed management and rehabilitation, and smallscale agro-industries, tourism (small-scale
developments).
28
Rehabilitation of tertiary
irrigation canal, Serbia
Hospital rehabilitation,
Turkey
Wastewater Treatment
Plant Rehabilitation,
Ukraine
29
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OP 4.01 is triggered; some type of EA
document (agreed during PCN ISDS review)
required prior to Appraisal
One public consultation – usually on draft EA
document
Lower end Category B projects often
“transferred” to Task Team/Sector Manager
after PCN
Problems can arise because environmental
aspects often neglected during
implementation
30
Category C: Examples
•
•
•
•
Very minor building rehabilitation (e.g. no change in blueprint)
Provision of equipment with no significant environmental risks
Technical assistance (not directly linked to investment);
Institutional development/Capacity Building/Training

…the project will/might/could finance new construction or building
rehabilitation

…the project provides Technical Assistance or other support which could
lead directly to activities which would trigger SG policies

…any of the above are financed by WB, or Government or other cofinancers (covered by overall Project financing plan)
31

Project which supports on-lending (or granting) for subprojects through a Financial Intermediary
◦ Operation must qualify as “Financial Intermediary Loan under OP 8.30
◦ E.gs.: SME credit lines, community-driven development, Small Grants
Programs, Green Investment Schemes, etc.
IMPLICATIONS:
•
•
•
•
Sub-projects not known prior to approval; Environmental Framework
disclosed prior to Appraisal
Sub-projects can differ in type, size, risk level, EA Category …
including Category A sub-projects unless explicitly excluded
Category A subproject EIAs – Executive Summary goes to WB Board
Institutional Capacity, and monitoring/supervision are even more
important than for other projects
See Environmental Assessment Sourcebook update on
Financial Intermediary Lending, in your binder & on CD
32
Category FI Project Examples
Rural Education,
Romania
Istanbul Municipal
Infrastructure, Turkey
Social
Investment
Fund,
Romania
Renewable
Energy & Energy
Efficiency, Turkey
33
Differences between national and WB requirements
(Environmental Assessment)
 Which projects require EA, and who decides
 Content/structure of EA (e.g. analysis of alternatives; explicit
EMP)
 Timing of EA preparation
 Who prepares EA (OP 4.01 requires independent for Category A EIA)
34
NATIONAL LEGISLATION
World Bank
Identification/
Preparation
Pre/Feasibility Study
Preliminary EIA
incl. mitigation measures
Detail Design
Bidding Docs
EA/EMP
Appraisal
Implementation
Final EIA
Env. Permit
(Monitoring)
Construction Permit
35
Ideally nearly final, but at least:
 Pass the “laugh test” (Ron Hoffer)
 Sufficient to identify and understand (or
credibly eliminate) significant environmental
risks – especially
 “deal breakers”
 Potential reputational risks

Sufficient for meaningful consultation with
Stakeholders
36
OP/BP 4.01: Involuntary Resettlement
It’s all about the land
Indicators for OP 4.12:
Investment with a physical footprint (needs land)
New construction or expansion of infrastructure; land use changes
The land is being occupied or used by someone
Legal or illegal/informal; permanent or sporadic; verify on the ground!
Resettlement
X
Land Acquisition
37



Loss of land or land-based assets
Loss of access to land or land-based assets
Loss of shelter /relocation of residence

Loss of income sources or means of livelihood (whether or
not the affected persons must move to another location)

Restriction of access to legally designated parks and
protected areas that result in adverse impacts on the
livelihoods of affected persons
38
OP 4.12 applies to:



all projects involving land take regardless of the total
number of people affected or the significance/severity of
impacts
all components of the project involving land take, regardless
of the source of financing
other activities requiring land take that are linked to WB:
 directly and significantly related to a Bank-assisted project,
 necessary to achieve its objectives as set forth in the project
documents, and
 carried out, or planned to be carried out, contemporaneously with
the project


both privately owned and public lands
both public and private investments
39
The many faces
of land acquisition/involuntary resettlement
40


Loss of income not relating to loss of land/land-based
resources (e.g. labor retrenchment)
Access restrictions resulting from community based natural
resource management (WB ascertains appropriate decision-making process
in place)

Regulation of NR on a national or regional level to promote
sustainability (e.g. watershed management, fisheries
management, land use planning) (Footnote 8 being clarified postAlbania Coastal Zone project)

Disputes between private parties in land titling projects
Beyond OP 4.12: “…it is good practice for the borrower to undertake
a social assessment and implement measures to minimize and
mitigate adverse social impacts, especially those affecting poor and
vulnerable groups.”
41
 WHO IS ELIGIBLE: WB requires compensation/ assistance to
informal land users & occupants (“squatters and encroachers”)
 VALUATION: WB requires compensation equal to replacement
value of land/assets
 BEYOND COMPENSATION: WB requires assistance for
restoration of livelihoods (not worse off as result of project)
 TIMING: WB requires compensation/assistance provided in full
prior to beginning implementation of works
42
OPTIONS:


Safest and most flexible: assume or anticipate possibility of
need for land acquisition – trigger OP 4.12 & prepare
Resettlement Policy Framework
Riskier and limiting: confirm with Client that sub-projects
requiring land acquisition will be excluded – don’t trigger OP
4.12.





Ensure Client understands broad scope of Land Acquisition
Include in Ops. Manual, Legal Agreement
Need to monitor/supervise
Changing later will mean 1st Order Restructuring!!
Failing to notice a problem may lead to Inspection Panel!!
43



Resettlement Policy Framework (RPF)
Resettlement Action Plan (RAP)
Process Framework (PF)
Separate Presentation on Resettlement Instruments
44

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


SG policies apply to all project activities, regardless of source
of funding (WB, Government, co-financers)
SG policies apply outside immediate project boundaries to
“areas of influence” (defined during “scoping” stage)
Some SG policies are triggered even when expected impacts
are positive (e.g. Natural Habitats, Forestry, Indigenous
Peoples)
TA projects can trigger SG policies if directly linked to
investments
Compliance with SG policies is everybody’s responsibility
45
Who Does What and When
46
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

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World Bank
Screens and Sets Project EA
Category
Advises Borrower on the Bank’s
EA requirements
Reviews and gives “No Objection”
for EA reports (Due Diligence
instruments)
Makes report available in Info shop
Supervises implementation of
EA/EMP
Makes mutually agreeable changes
during implementation
Project Team






Borrower
Prepares and Implements
EA/EMP/EMF in accordance with
national laws and WB OPs
Consults project-affected groups
and local NGOs
Discloses draft/final documents in
country
Responds to Bank and public
Monitors implementation of EMP
Ensures compliance under national
laws
SG Unit
47






WB Board (representing Donor & Borrowing Countries) identifies
needs and approve policies
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 Unit: (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 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 and report to
Management throughout project cycle
Quality Assurance Group (QACU) and Internal Evaluation Group (IEG):
Review performance of WB Staff and Management and quality of
operations vis a vis SG (application, compliance, implementation,
impact)
Inspection Panel: Investigates complaints by affected people;
Reports independently (makes recommendations) to WB Board
48
Project Team
•Including (where
appropriate):
Environmental Specialist
Social Specialist
• Selected by TTL in
consultation with SM
•Time charged to Project
budget
RSC & Safeguards
Review Team
•Including:
Environmental Safeguards
Reviewer
Social Safeguards Reviewer
•Selected by RSC
•Time charged to SG
budget (ECAVP)
49
Project Team:
Safeguards Unit*:
• Prepares PCN-ISDS; requests
• Reviews/clears ISDS/confirms EA
ISDS review meeting; proposes EA
Category
Category
•Prepares Risk Identification
Worksheet
• Guides/assists client; Reviews &
NOB for TORs, EA for most
Category B projects
• Prepares PAD, including E/S
analyses and Annex 10
• Prior to Appraisal: ensures
disclosure & consultation
requirements met
• (With lawyer) prepares
Negotiations package, including
any Env. provisions
• Reviews/comments on RIW
• Guides/assists Project Team;
Reviews/clears TORs, EA for
Category A projects
• Clears Appraisal Stage ISDS &
Appraisal package if all requirements
are met (or delegates this to Sector
Manager)
• Clears Negotiations package (unless
delegated to SM)
• Selectively reviews A-Ms, ICRs,
advises Project Team
•Carries out thematic reviews, liaises
with OPCS, etc.
Supervises EMP implementation, &
documents in A-Ms, ISRs and ICR
50
Transfer to SM
Transfer to SM
Prepare PCN &
PCN stage
ISDS
PCN review
mtg.
PCN stage ISDS mtg.
& clearance–
Provisional EA
category; agreement
on SG requirements
Follow-up SG
meeting (?)
Transfer to SM
Preparation of
EA/EMP;
RPF/RAP
Implementation
SG
implementation
& sup’n/reporting
Prepare draft
PAD & Appraisal
Stage ISDS
QER
Disclose final
EA/EMP;
RFP/RAP
Appraisal
stage ISDS
mtg. &
clearance
EA/EMP &
RFP/RAP
disclosure &
consultation
Decision Mtg.
Appraisal
Effectiveness
Negotiations
51
52



Credit Lines: (presentation on Env. Frameworks)
Rapid Response (OP 8.00): SG apply but with flexible
timeframe
Additional Finance:
◦ Summarize status of EMP, RAP implementation to date– support with
evidence of monitoring/sup’n
◦ New ISDS required only if new SG issues…otherwise update, resubmit
existing ISDS to Infoshop with current date


Restructuring: Elevation of SG category to “A”or triggering
of new SG policy = Level One restructuring and ISDS
updated, cleared
Investment Lending Reform: Stay tuned
53


SG as entry point – place at the table, demand concrete data,
make trade-offs explicit
Applying SG: necessary but not sufficient, esp. for social risks
(Env. SG policies fairly comprehensive; Social SG policies quite narrow)



Risk of negative impacts vs. “reputational risk”
“Due diligence” approach for legacy projects, add-on
investments
Role of Inspection Panel – positive and negative
(objectives/substance vs. procedures)
54
In Principle:
• High priority for some WB Board members, pushback form others
• “No Brainer” for EU member/accession countries (?)
• From project to sectoral/national level
In Practice
• Safeguards Diagnostic Review: “Equivalency” and “Acceptability”
and “Gap Filling”
• Does not change WB fiduciary requirements, Pelosi, etc.
• How different in the end from usual approach?
• In practice, limited demand from internal/external clients
55
LAST WORDS
56
P
r
Safeguard compliance is a lot easier
o and more effective if you
find out what’s needed early and plan
ahead…
n Quick
Turnaround
t
COB o
!
R
e
m
The biggest headaches come from trying to fix problems
i
retroactively
n
Board Date d
e
r
URGENT
NEEDED TODAY
Needed Yesterday
Hurry
2-hour (or 24 hour) turn-around time is not the service standard
Pelosi deadline
for SG review
57
THE
END
58