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KAZAKHSTAN

SEMEY STREET LIGHTING SYSTEM MODERNISATION PROJECT –

PROJECT PREPARATION

TERMS OF REFERENCE

1. INTRODUCTION

The European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) is

considering a senior loan of up to KZT 2.1 billion (EUR 5.1 million) or its equivalent in USD

(the “Loan”) to GKP Semey (the “Company” or the “Borrower”), which is wholly owned by

the Akimat of the City of Semey (the “City Akimat”) to upgrade the urban street lighting

system (“SL”) in the City of Semey (the “City”) in the Republic of Kazakhstan.

The Akimat of Eastern Kazakhstan Oblast (the “Oblast Akimat”) and the Akimat of Semey

City (the “City Akimat”) have approached the EBRD with request to assess the possibility of

financing SL modernisation projects in the City. Growing electricity and maintenance costs

have forced the City Akimat to explore long-term, sustainable options to improve the lighting

system’s efficiency. Given the lack of investment in the sector in the past decade, and a lack

of transparency in the contractual arrangements between the City Akimat and the existing

operators, the Bank have been asked to assist with the project implementation and with

bringing energy savings, operational efficiency and balanced contract relations to the sector.

The current status of SL systems in the City features insufficient coverage, deteriorating

power supply infrastructure, excessive demand and poor system management. There is also a

need to increase the number of lights taking into account insufficient coverage by SL and

natural expansion of the City. As a result of the country-wide privatisation programme of

state assets municipal SL system in the City was privatised in the late in 90s. However,

private companies were not able to provide proper services while the sector lacked

institutional setup for the private sector involvement. Contractual arrangements between the

City and private operators were of poor quality, operations lacked transparency, and City was

not able to control operations in terms of costs management, while private operators were not

incentivised to invest into operations. Eventually, private operators started leaving the sector

and transferred / sold poles back to the City.

The components of Project are expected to include, inter alia: (i) procurement of more energy

efficient modern luminaries to replace existing outdated street lights, (ii) centralised control

centre and monitoring solutions for the system; (iii) separate transformation sub-stations for

SL equipped with relevant technical solutions, and (iv) new poles/lighting points if confirmed

necessary.

In parallel with the hardware investments, the Project will contribute to the development and

institutional strengthening of the Borrower in respect of procurement, corporatisation,

creditworthiness enhancement and an improvement of the environmental situation in the City.

The Project is expected to aim at better service quality and improved environmental standards

due to significantly reduced energy consumption, avoided CO2 emissions and lower O&M

costs of SL in the City.

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On this basis, the Bank is looking to engage a suitably qualified reputable consultancy firm or

consortium of consultancy firms (hereinafter the “Consultant”) to prepare a feasibility study

(“FS”) for the Company and the City.

2. OBJECTIVES

The overall objective of the assignment is to prepare the FS for the Company, the Oblast and

the City Akimats to be used by (i) the Bank to appraise the Project and take a decision on the

prospective financing and (ii) the GOK in approving capital grant allocation in accordance

with the budget legislation of the GOK and rules of the Enhanced Partnership Framework

Agreement (“EPFA”) Programme.

3. SCOPE OF WORK

3.1 Technical Assessment and Preparation of Technical Specifications:

1) Review, summarise and document any road and street development plans, available

studies and the City’s investment proposals;

2) Analyse, to the extent possible, and comment on the current SL system and its

maintenance, standards, suggest areas for improvements (e.g. correcting fixtures

angles), including for proper trimming of tree branches, reduction of the energy waste

(i.e. SL operation during day-time as may be the case), removal of illegal power

connections/electricity theft, cessation of the practice of night-time phase-outs (to

reduce energy consumption as might be the case);

3) Analyse the quality of the energy supply to establish the need for protective

equipment for any upcoming new systems roll-outs;

4) Analyse remote lighting control and monitoring systems available in the market,

benefits and drawbacks of the usage of each of them as well as conduct costs

comparison;

5) Establish the scope for using SL dimming against available information about traffic

intensity and road lighting requirements for all applicable road categories;

6) Analyse potential for use of motion sensors to be attached to dimmers and SL controls

and advise on their appropriateness as regards the Project given reliability and

maturity of the best available technologies taking road safety as the key purpose of the

SL retrofit and therefore as the primary consideration;

7) Assemble and review all available designs and mapping for the proposed

investments, and advise on any additional design work that may be required;

8) Detailed asset inventory, including quantity, age, current condition, main technical

parameters, and type of the assets. The inventory should group all streets in categories

based on type of street (main corridor, residential lighting, parks, etc.), distance

between and height of columns, electrical components, electrical cabinets, type and

power of lighting points and their ownership;

9) Review and comment on the need to replace light columns and fixtures and the need

to install new light columns, and propose realistic plan indicating approximate

number of columns to be replaced and to be installed during the next 10 years;

10) Discuss with the City and comment on the SL standards for each category of the

street in the technical and functional parameters. A few main options have to be

supported by indicative CapEx and OpEx estimates as well as resulting indicative

energy savings;

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11) Establish process and methodology for the introduction of energy efficient systems

in the City;

12) Conduct discussions with the relevant energy commissioner/energy supplier with

regards to an 'energy efficiency'-focussed tariff structure and self-metering;

13) Establish processes and methodology for the identification and removal/rectification

of unnecessary lighting and over-lit areas;

14) Generate all the required inputs into the Technical Specifications that will form basis

for requirements for the equipment and services to be procured. The Consultant

should at the minimum consider (but shall not constrain their recommendations to) the

following technical elements of the equipment to be procured:

o Compliance of luminaire’s photometric characteristics with national and

international road requirements for the road types/categories to be installed on;

o Minimum luminaire’s luminous flux - specify what ‘light flow’ per lamp and per

light point is needed and how the distribution is needed (depending on width of the

road and distance between poles and height of poles this varies);

o Light distribution for lighting points;

o Maximum luminaire’s glare;

o Minimum installed lighting levels and luminous flux;

o Minimum guaranteed service life, including warranted luminous flux over the set

values for lamp life and a required maintenance factor;

o Minimum and maximum IP and IK values for each road category;

o Minimum required impact resistance and water/dust tightness of the luminaire;

o Maximum environmental temperature for operations;

o Minimum quality requirements for power cabling and connectors;

o Heat sink construction and long-term heat-sink capacity (to ensure easy clean-up

and protection against dust and foliage build-ups over the service life (assumed to

be equal to or longer than the loan tenor));

o A list of laboratory tests that should be provided by the proposed equipment.

Minimum quality (purity) of the aluminium heat sink alloy;

o Minimum thickness of the anodizing layer, if appropriate;

o The lowest and highest operating temperatures (to be in line with national

requirements);

o Modularity of the components set-up (to permit easy replacement of faulty drivers,

sensors, dimmers, and any control print-circuit boards (PCBs) as may be

applicable), if appropriate;

o Minimum quality of components of the luminaire’s driver (to ensure effective

protection against poor voltage quality, such as voltage fluctuations, power surges,

high reactive load, car accidents and other events leading to power line break-

downs), and a separate surge protection block for driver protection;

o Decide and agree with the City on the ease of reprogramming dimmers (to ensure

this can be done preferably from the operator’s workstation or from mobile or - at a

minimum - switch-gear-box-based remote controls);

o Aesthetics of luminaire’s design (particularly applicable for city’s historical areas)

– to be established after consultations with relevant City authorities and the

Company;

o Functionality and ease-of-use (preferably to be multi-platform-based) of the remote

monitoring and control system;

o Specifications on the technical solutions for transformer substations, including but

not limited to the following:

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� automated metering system with differential time-of-the-day rates capability

(where absent),

� automated relay protection and disconnection equipment (to protect the various

components of the new lighting system from voltage fluctuations, power surges,

outages, lightning strikes and other adverse events).

o Formation of the design solutions list and break-up of total number of lights by the

certain design solutions. Full matching of all streets by certain design solutions

from the list.

3.2 Economic and Institutional Assessment

1) Assess Project’s technical feasibility and environmental standards (in terms of quality,

maintenance optimization, modularity of components with short service life, and

reliability);

2) Rationale and justification for the Project components and investments taking into

consideration the current technical condition of selected streets and related

infrastructure and best international modernization practices such as dimming,

sensors, and intellectual controls;

3) Justification of its high priority in terms of the internal rate of return (“IRR”);

4) Economic review in terms of the economic internal rate of return (“EIRR”);

5) Social aspects (affordability, safety, physical appearance, particularly in highly visible

pedestrian and historical areas. The latter parameter is to be established after

consultations with relevant City authorities and the Company).

6) Study and confirm the new and innovative green technology, specifically in

carbon/economic savings, to be achieved in the Project. Compare both LED and

conventional technology (e.g. sodium);

7) Provide current costs associated with the new lighting infrastructure and estimate a

five- and ten-thirteen-year outlook of the potential cost reduction of the same

infrastructure in case of an instant implementation, and then compare the cost savings

with the costs of: (i) delayed implementation, (ii) implementation using small budget

allocations spread across a span of 5-10/13 years, (iii) immediate (6-12-month)

implementation financed by a loan to the City. The comparison shall include cost

savings, including energy, operation and maintenance, carbon savings and

management streamlining.

8) Collect inputs for financial review of the proposed investment, including confirmation

of cost estimates and operational assumptions for financial model projections;

9) Using attached tables in Annex 1 present findings in monetary and physical units and

split by each component for baseline vs after project scenarios, and provide physical

indicators data to be used for monitoring the project by the EBRD and the donors.

3.3 Market Scoping for Private-Sector Interest

1) Develop templates for market sounding for the involvement from the private sector

contractors under a Design-Supply-Install & Operate-Maintain (“DSIOM”) contract;

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2) Perform a Market Scoping Study for interest of the private-sector energy efficiency

street-lighting engineering community for a single Supply-Install and a long-term

O&M contract preferably with a 10-year equipment warranty (which should protect

against equipment failures).

3) Propose a general evaluation methodology with appropriate criteria for tendering out

the DSIOM SL.

4) Provide a clear set up for the division of responsibilities between the Company and

the contractors implementing DSIOM. The Consultant should take into account that

the responsibility shall rest with most appropriate party, i.e. with those in control of

the situation.

5) Present a set of KPIs, their desired levels and penalty system for use in the DSIOM

contract and to be mirrored in the PSC.

3.4 Legal Due Diligence and Public Service Contract:

1) Assess legal issues of associated investment and verify legal structure of the Project

proposed during concept stage; describe the legal and institutional framework

governing the status and operations of the Company (legislation, statutes, service

agreement, any price regulations, etc.) and identify legal requirements influencing the

implementation of the investment programme;

2) Using the template provided by the Bank reconfirm and finalise a long-term public

service contract or similar type of agreement (“PSC”) to be concluded between the

Company and the City to allow necessary payments from the City to the Company to

cover debt service as well as all obligations of the company under O&M contract as

well as establishing service levels, including:

• the adequate procurement strategy of PSC in line with the legislation of the

Republic of Kazakhstan, including (i) the timing of the tendering, and (ii)

confirmation of appropriate procedures for awarding of the PSC (state

procurement tender or direct contracting, etc.);

• a maximum eligible cost per service unit to be applied in formula for estimation

of service payment in relevant period as well as provide a justification for this

service cost per unit in light of existing best international benchmarks;

• a separate annex on indexation of maximum eligible cost per service unit

formula. It should be based on officially published indexes or documented

prices;

• a justifiable fixed profit margin on top of service cost to be paid to a Company,

if its profit cannot be claimed and paid by the City Akimat differently, i.e. as

part maximum eligible cost per service unit;

3) Agree final PSC with the Bank, the Company and the City;

4) Document the PSC preparation process and report to the Bank, including explanations

on how each particular point of this task was addressed and incorporated in the PSC;

5) Develop a Term Sheet for Company’s contracts (including the insurance/warranty

clauses) with private contractors/operator (described in Section 3.5 above).

3.5 Procurement Plan

1) Prepare a section for the tender package containing functional specifications of the

equipment to be procured during the project implementation based on the inputs of the

completed Technical Assessment;

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2) For each of the sub-components of the Project develop reasonable estimates of

quantities and costs based on applicable previous bidding experience in the country

and the region accounting for the difference in logistics costs as well as in tax and

customs regimes;

3) Develop a preliminary procurement plan in EBRD standard format and acceptable to

the Bank with detailed descriptions of all project components grouped into categories

and expected contracting packages/lots and roll-out/implementation/commissioning

schedules;

4) Identify, assess and elaborate local requirements necessary for obtaining the approvals

from the State Expertise and other applicable public authorities and regulators.

3.6 Environmental And Social Due Diligence

The Consultant will undertake the environmental and social (E&S) due diligence (ESDD) of

the Project to make sure it is structured in line with EBRD’s Performance Requirements under

2014 Environmental and Social Policy to ensure consideration and implementation of the E&S

requirements, conclusions and recommendations into the Technical Scoping work and relevant

future contract requirements. ESDD will involve the following components:

• a corporate environmental, health, safety, social and labour (EHSSL) review of the

existing operational performance and corporate risk management practices of the

client (relevant City departments). This review will focus on the client’s existing E&S

capacity, management systems, corporate procedures and policies, contractor

management practices, as well as operations and assets/facilities and will benchmark

those against EBRD PRs, including preparation of a Compliance Summary table with

the Bank’s PRs.;

• identification of the key environmental and social issues and risks associated with the

proposed priority investments;

• review and comments on the appropriateness of the existing environmental (among

others waste management), health and safety and labour provisions for the sub-

contractors (O&M contractor) and proposal of the necessary improvements;

• development of an E&S Management Plan for the refurbishment works to be included

in the future tender documents and work contracts. This will need to cover appropriate

disposal of the old mercury lamps, preventative management of health and safety

risks to workers and public safety, and mitigation of road safety issues through

appropriate temporary traffic and safety arrangements during the refurbishment

works;

• preparation of an Environmental and Social Action Plan (ESAP) and a Stakeholder

Engagement Plan (SEP) for the Project upon completion of ESDD, which shall then

be agreed with the Client;

• preparation of a Non-Technical Summary (NTS) for the Project.

3.6.1 Corporate E&S Review and Assessment

The Consultant will review the available documentation and assess the client’s current

environmental and social management systems, operations and assets/facilities against the

applicable environmental and social requirements. Specifically, the due diligence will

identify and assess the client’s:

• corporate environmental and social management systems, policies, procedures and

practices against the EBRD PRs;

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• capacity to manage all relevant social and environmental risks and impacts of its

operations in accordance with the EBRD PRs;

• compliance with applicable environmental and social regulatory requirements; and

• operations and assets/facilities that could be associated with potentially significant

environmental risks and impacts.

It is required, that Consultant will complete the following tasks:

• Undertake an initial screening of potentially significant environmental and social risks

and impacts associated with the Client’s operations and assets/facilities based on a

review of existing documentation and further identify sensitive areas and receptors

that could be affected and impacted by the operations.

• Prepare relevant questionnaires to be completed by the Client’s management.

Following the initial screening and review of the questionnaires completed by the

Client, the Consultant will meet with the Client’s management and visit selected sites,

as appropriate, to review the status of site activities, and controls implemented to

address environmental, social and health and safety issues by the site contractors and

the Client.

• Review and comment on the appropriateness of the existing environmental (among

others waste management), health and safety and labour provisions for the sub-

contractors (O&M contractor) and proposed the necessary improvements.

• Develop an E&S Management Plan for the refurbishment works to be included in the

future tender documents and work contracts. This will need to cover appropriate

disposal of the old mercury lamps, preventative management of health and safety

risks to workers and public safety, and mitigation of road safety issues through

appropriate temporary traffic and safety arrangements during the refurbishment

works.

3.6.2 ESDD reporting

Upon completion of tasks under section 3.6.1 the Consultant shall prepare the following E&S

reports (to be submitted within 6 weeks) to summarise the assessment findings:

Corporate Environmental and Social Assessment Report

To report the overall findings of the assessment the Consultant will prepare an environmental

and social assessment. A sample format is provided in Annex 2 for guidance.

The Consultant will benchmark the Client’s current management systems, operations and

assets against the EBRD PRs, including:

• a summary highlighting any significant ‘gaps’ between the Client’s current

management systems, operations and assets and the EBRD PRs;

• a compliance matrix, summarising and comparing the Client’s current management

systems, operations and assets against each of the EBRD PRs that are considered

relevant, and stating the extent to which these are met; and,

• requirements for corrective actions and improvement measures that will need to be

undertaken so as to meet the EBRD’s PRs which will in turn be captured in the

Environmental and Social Action Plan.

The required format for the EBRD PR Benchmark Matrix (PR Compliance assessment) is

provided in Annex 5.

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Corporate Environmental and Social Action Plan (ESAP)

The Consultant shall develop a comprehensive ESAP to address issues identified during

ESDD. The ESAP will focus on those issues that are required to bring the operations into

compliance with the EBRD’s requirements and will be presented and sequenced by PRs.

Actions identified must be numbered, clearly defined, indicate a time frame for completion

(with specific reference to those actions that must be completed before financial close if

appropriate) and a responsible party specified. Further, each item must contain a description

of the factors that will be used to determine when the identified action is closed/completed.

The Consultant will also inform the Client about any material budget implications of ESAP

items (although this information may not be required in the public domain).

The ESAP will be compact and, if needed, details will be included in sub-plans referenced in

the main ESAP. The required format the ESAP is given in Annex 6

The ESAP will form part of the EBRD’s agreement with the Client and therefore will be

submitted as a standalone document.

Corporate Stakeholder Engagement Plan (SEP)

The Consultant shall prepare a draft SEP in compliance with the EBRD PR10. The scope and

level of detail of the SEP will be scaled to fit the needs of the Client’s current and proposed

activities, and the objectives of EBRD PR10. Following review of the Client’s operations, the

Consultant will propose a format best suited for the specific needs. Guidance for the contents

of an SEP is provided in Annex 3.

Non-Technical Summary (NTS)

The Consultant will prepare, in consultation with the Client, a concise, over-arching,

standalone NTS. The NTS will be written in non-technical language and the Consultant will

ensure that the NTS can be used to demonstrate compliance with the EBRD requirements,

and provide confirmation that the documents are ready for public disclosure. An indicative

list of issues for the NTS is given in Annex 4

4. IMPLEMENTATION ARRANGEMENTS AND DELIVERABLES

4.1 Implementation Arrangements

The duration of the assignment is expected to be up to 3 months.

The Consultant shall report to the EBRD’s Project Operation Leader, Raushan Taigulova

(taigulor@ebrd.com), based in Almaty, while also liaising with the Company and the City.

On the E&S Due Diligence part of the assignment the key contacts based in London HQ is

Polina Pimenova (pimenovp@ebrd.com). The Company will designate senior officials to be

the primary contact persons with specific responsibility for assisting the Consultant and co-

ordinating activities.

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The Company will provide the Consultant with working space, necessary furniture and

telephone connections. The Consultant will be responsible for all interpretation and

translation services it may require. All available project information, reports and documents,

including all of their records, plans, reports, designs and other documents as appropriate, will

be made available for the Consultant by the Company and the Bank; but it will be the

responsibility of the Consultant to translate these documents, if necessary.

All documentation related to the works is and will remain the property of the Company after

completion of the assignment. The Consultant shall not publish, use or dispose of this

documentation without written consent of the Company and EBRD.

4.2 Reports & Deliverables

All reports shall be prepared in hard and electronic copy versions in both Russian and English

and shall be delivered to the Company and the EBRD.

The Consultant shall produce in the course of the assignment the following reports:

• Inception Report: Within one week of commencement of the assignment, the

Consultant shall present to the Company, the City and the Bank an inception report

presenting the initial findings, with an emphasis on findings having an impact on the

time schedule and factors affecting these Terms of Reference. The Company, the City

and the Bank will provide comments on the inception report to the Consultant.

• Final Draft and Final Reports: Within 6 weeks of commencement of the

assignment, the Consultant will submit to the Company, the City and the Bank a draft

final report. This shall include as outlined above in Section 3:

3.1 Technical Assessment and Preparation of Technical Specifications,

3.2 Economic and Institutional Assessment,

3.3 Market Scoping for Private-Sector Interest,

3.4 Legal Due Diligence And Public Service Contract,

3.5 Procurement Plan

3.6 Environmental And Social Due Diligence.

The Consultant shall distribute the draft final report in Russian and English to the Company,

the City and the Bank for comments and shall organise a meeting with all parties within 2

weeks after distribution of the report. Upon receiving final comments from the Company, the

City and the Bank after such meeting the Consultant should incorporate them into the Final

Report, promptly finalise it and distribute as stipulated above.

5. CONSULTANT’S PROFILE

The Consultant should have significant expertise in SL sector with respect to the scope of

work under TOR, including:

• Institutional expertise of SL sector internationally as well as in the former CIS countries;

• Technical knowledge of the SL sector internationally as well as in the region of CIS

countries;

• Track record in implementing energy efficiency projects in the public sector in the

EBRD regions (preferably in SL);

• International experience of energy performance contracting (EnPC), preferably in SL;

• International experience in modernizing SL systems with the use of luminaires;

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• Good knowledge and experience in IFIs procedures and rules on public procurement and

disbursement policies, understanding of institutional and legal framework aspects in the

SL sector, international and local (regional) financial management standards;

• A good knowledge and understanding of EBRD’s environmental and social requirements

and past experience of assistance in their successful implementation.

• Good knowledge of Kazakh legislation relevant to the assignment.

The Consultant’s team is expected to include the following experts:

• Project manager;

• Street lighting expert;

• Legal expert;

• Environmental and Social experts;

• Local experts.

Ability to communicate with the Company in Russian language is considered essential.

The Consultant’s proposal should clearly articulate his or her competencies or - in case of a

corporate consultant bidding – competencies of the team members and the composition of the

core team.

The non-core team members of a corporate Consultant are to be included in the proposal

including an expectation of how the work tasks will be split between the core and non-core

team members. The Consultant can propose a number of non-core team members / sub-

contractors to fulfil specific tasks (similar to a selection from a short list) and these non-core

team members /sub-contractors are not restricted from being part of more than one bid.

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ANNEX 1: STANDARD MEASURING INDICATORS AND

SUSTAINABLE RESOURCE INITIATIVE IMPACT INDICATORS

Standard measuring indicators:

Sector Indicator Data point to be collected

Projected

after

implementat

ion

completion*

Actual

changes on

implement

ation

completion

Street lighting

Total population

benefitting from

improved street

lighting.

Number of persons with

improved street lighting

services.

Annual reduction

in tonnes of CO2

equivalent due to

an increase in

energy efficiency

of the street

lighting system.

Total energy consumption of

the street lighting system

(current and after project

implementation);

Number and types of lighting

fixtures (current and after

project implementation);

Energy savings resulting from

improved O&M (incl.

dimming);

CO2 savings related to

technology change, O&M,

increased lifetime of the

technology and any other

savings related to the project

and total CO2 savings.

Annual reduction

in O&M costs. Annual O&M costs for SL.

* measured two years after projected full loan disbursement

SRI impact indicators:

SRI impact

indicator

Unit Data point to be collected Projected

after

implementat

ion

completion*

Actual

changes on

implement

ation

completion

Primary

energy saved

GJ/yr Project energy use compared to baseline1

energy use. This equals the use of

electricity, multiplied by a loss factor to

take into account country average

1 The baseline is defined as the expected conditions without the project two years after full loan disbursement. The baseline

is compared to the conditions projected with implemented project two years after full loan disbursement.

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generation efficiencies and electricity

grid losses2.

CO2 emissions

reduced

ton

CO2e/

yr

Project CO2 emissions compared to

baseline CO2 emissions. These

emissions relate to the indirect emissions

as a result of the use of electricity3.

2 For example, with an average electricity generation efficiency of 40% and grid losses of 7%, the primary energy use

(MWh) is 2.7 x the direct electricity use (MWh). 3 The CO2 emissions as a result of the use of electricity are determined by multiplying the use of electricity (MWh) with the

country specific grid emission factor (ton CO2/ MWh) in line with the joint MDB list of grid emission factors.

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ANNEX 2: OUTLINE FORMAT FOR THE CORPORATE ESDD REPORT

The following is an outline format for the Corporate ESDD Report. The Consultant is

expected to use its professional judgement to determine what aspects (either listed below or

additional) are relevant to the Assignment.

Executive Summary

1 | Nature of the Project to be Supported

• Description and context of the proposed Project

2 | The Existing Company

2.1 | Operations, Facilities and Assets

• Physical description

• Location

• Site history

• Current operations

• Organisation of environmental and social management

3 | Environmental Performance

4 | Occupational Health and Safety Performance

5 | Labour Practices and Human Resources Management

5.1. Contractor management practices

6 | Social Performance and Management (Outside of the company’s premises)

6.1 | Local Communities: Impacts and Benefits

6.2 | Community Health, Safety and Security

6.3 | External Stakeholder Engagement

6.4 | Impacts on Vulnerable Groups

6.5 | Involuntary Resettlement and Economic Displacement

6.6 | Conclusions and Recommendations: External Social Performance

7 | Conclusions and Recommendations

7.1 | Summary of Regulatory Compliance

7.2 | Summary of Key Impacts, Risks and Liabilities

7.3 | Corrective and Mitigation Measures

Appendices (to include)

• Details of Persons Consulted

• Photo/video/CD log

• Copies of Permits and other documentation

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ANNEX 3: GUIDANCE FOR CORPORATE STAKEHOLDER ENGAGEMENT

PLAN

The following is an indicative list of issues for possible inclusion in a Stakeholder

Engagement Plan. The Consultant is expected to use its professional judgement to determine

what issues (either listed below or additional) are relevant to the Assignment.

A Stakeholder Engagement Plan will need to:

• Briefly identify the Client’s location(s) and areas subject to impact (e.g., list of

communities)

• Record what the Client is legally required to do regarding disclosure and consultation

• Identify all stakeholders, including stakeholder maps (if relevant)

• Report on any previous consultation and disclosure activities

• Define which documents will be released, including a schedule, and in what language

• Define where documents will be available (physical and online addresses)

• Define how people will be notified of the document availability

• State the beginning and end dates of the consultation

• Provide a table or list of meetings, activities or opportunities for comment. If

locations/dates are not yet known, state how people will be informed of the dates

• State who/where should comments be sent to, what will happen to them and how

people will be advised of the outcomes

• Define how grievances will be handled (including a specific public grievance process)

• Define the monitoring and reporting activities for the stakeholder engagement process

• Define the responsibilities for delivering the stakeholder engagement process

A typical SEP should not exceed 20 pages in length, excluding annexes.

Please also see guidance note:

http://www.ebrd.com/downloads/about/sustainability/grievance-mechanism.pdf

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ANNEX 4: LIST OF INDICATIVE ISSUES FOR A NON-TECHNICAL SUMMARY

The following is a list of indicative issues for possible inclusion in a Non-Technical

Summary. The Consultant is expected to use its professional judgement to determine what

issues (either listed below or additional) are relevant to the Project.

Non-Technical Executive Summary

1 | Project Description

• A concise and comprehensive description of the Project

• Scheme map, where available

2 | Background

• Rationale of the Project

• Legal aspects and compliance with relevant environmental and social laws

• Current environmental and social situation and considerations

• History of the Project development and planning; including an outline of the main

alternatives that were studied, their environmental and social impacts, and the reasons

for making the final selection

3 | Process

• ESIA process carried out and integration with design

• A statement of the Project’s current state of compliance with national regulatory

requirements and relevant EU requirements

• Public consultations and disclosure and dealing with objections

4 | Summary of Environmental Benefits, Potential Adverse Impacts, Mitigation and

Management Measures

• Air quality

• Associated infrastructure

• Biodiversity and nature conservation

• Consistency with policy, law and other plans

• Cumulative impacts

• Induced (indirectly consequential) impacts

• Land use planning and changes

• Landscape and visual impacts

• Raw material sourcing and transportation, including borrow pits

• Road safety

• Traffic, noise and vibration

• Waste management

• Water resources

5 | Summary of Social Benefits Potential Adverse Impacts, Mitigation and

Management Measures

• Community impacts

• Contractor management, including the siting and management of worker camps

• Cultural heritage

• Disruption and public health and safety during construction

• Impacts on businesses and employment

• Impacts to existing infrastructure and public services

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• Labour issues and standards

• Land acquisition and resettlement (cross reference any resettlement report that is

being developed)

• Local traffic and access impacts

• Occupational and public health and safety issues

• Socio-economic impacts; including vulnerable groups (taking into account gender

specificities and needs)

7 Communications

• Contact details

• Process for addressing any issues arising

• Link to Stakeholder Engagement Plan (or similar)

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ANNEX 5: ENVIRONMENTAL AND SOCIAL APPRAISAL: COMPLIANCE

SUMMARY TABLE

Introduction

The Compliance Summary provides a systematic review of corporate compliance with the

EBRD Environmental and Social Policy, as defined through the applicable Performance

Requirements (PRs). Scope of compliance is all PRs applicable to non-FI projects. The

review is intended to provide a baseline against which to establish the capacity of Client’s to

meet the EBRD PRs.

Between 2 and 10 indicators are identified for each of the applicable PRs: 1, 2, 3, 4, 5, 6, 7, 8

and 10.

Guidance

For all PRs (Indicators with whole number references) provide a summary of overall

compliance with the PR. Justification for any derogation from a PR should be summarised

and supporting documents referenced.

For each indicator within a PR, please complete the 3 steps below:

1. Decide whether the indicator is applicable. For Category A and B projects the

starting point is that all indicators are applicable unless the project has no significant

aspects relevant to the indicator (i.e. no risks), in which case the indicator should be

scored "NA" and a brief summary of the reason given. For Category C projects the

starting point is all indicators are NA unless the project has a significant aspect

relevant to the indicator (i.e. there is a material risk).

2. Decide whether an opinion is possible. If not (for example if the indicator will

apply, but it is too early in the project) score as "NOP" and provide a brief summary

of why. Where lack of opinion represents a material omission to the review refer to

where this is addressed in the report and summarise any recommendations.

3. Score the indicator as follows and provide brief justification.

EC

Exceeding Compliance: The Client has gone beyond the expectations of EBRD’s PR

requirements. EBRD should be able to use projects rated EC as a

role model for positive Environmental and Social effects.

FC

Fully Compliant: The Client is fully in compliance with EBRD’s requirements, and

EU and local environmental, health and safety policies and

guidelines.

PC

Partial Compliance: The Client is not in full compliance with EBRD’s requirements, but

has systems, processes or mitigation measure in place which are

working towards addressing the deficiencies.

MN

Material Non-compliance: The Client is not in material compliance with EBRD’s

requirements, and the systems, processes or mitigation measures in

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place are not working towards addressing the deficiencies.

4. Comments/Issues: Provide a brief commentary on the relevance of this requirement

for the project and an explanation of the chosen score.

5. Actions Required: Where applicable, briefly describe any actions required by the

client to achieve full compliance with each requirement. Where a relevant action is

included in the ESAP for this project, please provide a reference to the ESAP.

6. PR Summary: Provide an overall summary against the PR, using the above

compliance definitions with supporting commentary. In some cases it may be

sufficient to address a PR at summary level only, depending on Stage 1 above.

Note: The Material Non-compliance score (at both Indicator and PR level) has significant

implications for loan approval and requires particular care. In judging whether the measures

sufficiently address deficiencies the consultant should consider in a structured way both the

level of residual (post-approval) risk and the level of confidence that the Client can

successfully bring the issue into compliance with the Policy through the ESAP. The table

below illustrates the approach to be taken.

Risk

High PC MN MN

Medium PC PC MN

Low FC PC PC

High Medium Low

Confidence

Performance Requirement Score

Comments/

Issues

Actions

Required

1 Assessment and Management of Environmental and Social Impacts and Issues

Summary:

1.1 Environmental and Social Assessment

1.2 Environmental and Social Management

Systems

1.3 Environmental and Social Policy4

1.4 Environmental and Social Management

Plan

4 Where the project represents a substantial extension to the client activities, confirm that Policy and supporting

management systems and plans are appropriate for the new activities.

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Performance Requirement Score

Comments/

Issues

Actions

Required

1.5 Organisational Capacity and

Commitment

1.6 Supply Chain Management

1.7 Project Monitoring and Reporting5

2 Labour and Working Conditions

Summary:

2.1 Human Resource Policies and Working

Relationships

2.2 Child and Forced Labour

2.3 Non-Discrimination and Equal

Opportunity

2.4 Workers Organizations

2.5 Wages, benefits, and conditions of work

and accommodation

2.6 Retrenchment6

2.7 Grievance Mechanism

2.8 Non-Employee Workers

2.9 Supply Chain

2.10 Security Personnel Requirements

3

Resource Efficiency and Pollution Prevention and Control

NB. Appraisal should carefully consider (and state) what regulations or standards

have been applied to compliance assessment (eg EU, National, Sector Best

Practice). Assessments should address consideration of the performance of

alternative techniques.

Summary:

3.1 Resource Efficiency

3.2 Pollution Prevention and Control - Air

emissions

3.3 Pollution Prevention and Control -

Waste waters

3.4 Greenhouse Gases7

3.5 Water

3.6 Wastes

3.7 Hazardous Substances and Materials

5 At appraisal stage there will be limited information. Compliance assessment should address specific plans for

monitoring and reporting (against for example ESAP requirements) and also consider whether there is evidence

of weak monitoring/reporting by client on other relevant projects - which may reduce confidence in future

performance. 6 Will not be applicable to many projects at appraisal stage. However evidence, within the last 3 years of client

approach to retrenchment which is not compatible with the Policy should be taken into consideration. 7 Particular attention should be given to client demonstration of consideration of alternatives. Clients expected

annually to produce more than 25,000 tonnes of CO2 equivalent should provide an emissions inventory and

evidence of annual reporting.

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Performance Requirement Score

Comments/

Issues

Actions

Required

4 Health and Safety

Summary:

4.1 Occupational Health and Safety

4.2 Community Health and Safety

4.3 Infrastructure, Building, and Equipment

Design and Safety

4.4 Hazardous Materials Safety

4.5 Product and Services Safety

4.6 Traffic and Road Safety

4.7 Natural Hazards

4.8 Exposure to Disease

4.9 Emergency Preparedness and Response

5 Land Acquisition, Involuntary Resettlement and Economic Displacement

Summary:

5.1 Avoid or minimise displacement

5.2 Consultation

5.3 Compensation for displaced persons

5.4 Grievance mechanism

5.5 RAP/LRP documentation

5.6 RAP/LRP implementation

5.7 Monitoring

6 Biodiversity and Living Natural Resources

Summary:

6.1 Assessment of Biodiversity and Living

Natural Resources

6.2 Conservation of Biodiversity

6.3 Sustainable Management of Living

Natural Resources

7 Indigenous People

Summary:

7.1 Indigenous People Assessment

7.2 Adverse Effects Avoidance and

Indigenous Peoples Development Plan

7.3 Information Disclosure, Meaningful

Consultation and Informed Participation

7.4 Grievance Mechanism and Prevention

of Ethnically Based Discrimination

7.5 Compensation and Benefit-Sharing

7.6 Impacts/Relocation on Traditional or

Customary Lands and Cultural Heritage

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Performance Requirement Score

Comments/

Issues

Actions

Required

8 Cultural Heritage

Summary:

8.1 Assessment and Management of

Impacts on Cultural Heritage

8.2 Consultation with affected communities

and other stakeholders

8.3 Project use of Cultural Heritage

10 Information Disclosure and Stakeholder Engagement

Summary:

10.1 Stakeholder Engagement Plan

10.2 Operational Grievance Mechanism

Overall Compliance

National Environmental, Social, Health

and Safety Requirements

EU Environmental, Social, Health and

Safety Requirements

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ANNEX 6. GUIDELINE FOR REPORTING ENVIRONMENTAL AND SOCIAL ACTION PLAN

No. Action

Environmental

& Social Risks

(Liability/Benefit

s)

Requirement

(Legislative,

EBRD PR, Best

Practice)

Resources,

Investment

Needs,

Responsibility

Timetable

Target and

Evaluation

Criteria for

Successful

Implementation

Status

PR1 Assessment and Management of Environmental and Social Impacts and Issues

1.1 Develop and

implement an

EMS

Optimisation of

environmental

management

though a

formalised

system. Provide

resources for

training and

monitoring of

emissions

EBRD PR1

Voluntary and

best practice

Own resources,

external

consultants

Cost

Assign

responsibilities

20xx Develop and

implement an

EMS

Attain ISO 14001

or equivalent

certification

Annual EHS

Report to the

Bank

PR2 Labour and Working Conditions

2.1

PR3 Resource Efficiency and Pollution Prevention and Control

3.1

PR4 Health and Safety

4.1

PR5 Land Acquisition, Involuntary Resettlement and Economic Displacement

5.1

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No. Action

Environmental

& Social Risks

(Liability/Benefit

s)

Requirement

(Legislative,

EBRD PR, Best

Practice)

Resources,

Investment

Needs,

Responsibility

Timetable

Target and

Evaluation

Criteria for

Successful

Implementation

Status

PR6 Biodiversity and Living Natural Resources

6.1

PR7 Indigenous People

7.1

PR8 Cultural Heritage

8.1

PR10 Information Disclosure and Stakeholder Engagement

10.1