6. Environmental Assessment Framework

Transcription

1 E Environmental Assessment Framework Introduction This energy efficiency project will lend funds to industrial enterprises and to Energy Management Companies (ESCOs) for eligible energy efficient investment projects. EXIM BANK will be repaid directly from the industrial enterprises or from the ESCO. ESCOs in turn will be paid from the energy savings realized by their specific investments with individual Endusers. The project will support the government s priority energy conservation programs in the industrial and building sectors. Industrial investments will include the full spectrum of small, medium, and large scale enterprises. The purpose of this Environmental Management Framework (hereafter, Framework ) is to provide guidance to EXIM BANK, ESCOs, EXIM BANK subproject sponsors (hereafter Subborrower ) and ESCO End-users (hereafter End-user ) as to their relative roles and responsibilities in meeting environmental assessment (EA) requirements for any individual subproject to be considered for financing under this World Bank project.. This Framework covers the following six EA aspects of the subproject preparation phase and the two aspects of the subproject implementation phase. Details of the requirements, responsibilities and procedures are subsequently described: I. Subproject Preparation and Construction a) Screening b) Environmental Documentation c) Public Consultation d) Public Disclosure e) Review and Approval of Environmental Documentation f) Related Conditions and Responsibilities II. Subproject Implementation a) Supervision b) Reporting EA Procedures I. Subproject Preparation and Construction Enterprise Sub-Loan EXIM BANK is responsible for subproject screening. The Sub-borrower is responsible for any EA document preparation, public consultation, and public disclosure. The Sub-borrower must demonstrate to EXIM BANK that the subproject proposed for support has: (a) met all Chinese EA requirements (procedures and documentation) and (b) the overall enterprise in which the subproject will be associated with is also in full compliance with Chinese EA requirements (if in effect at the time the enterprise was built) and Chinese pollution laws and regulations (air, water, solids, etc.). ESCO Sub-Loan EXIM BANK is responsible for subproject screening. The ESCO is responsible for any EA document preparation, public consultation, and public disclosure. The

2 ESCO must demonstrate to EXIM BANK that the End-user subproject proposed has: (a) met all Chinese EA requirements (procedures and documentation) and (b) the overall End-user enterprise in which the subproject will be associated is also in full compliance with Chinese EA requirements (in effect at the time the End-user enterprise was built) and Chinese pollution laws and regulations (air, water, solids, etc.). a) Screening EXIM BANK is responsible for subproject screening. The Sub-borrower (enterprises or ESCO) will submit the following Information Package to EXIM BANK to be placed in the subproject file: For the proposed subproject Any Feasibility Study prepared Copy of any Chinese EIA or EIA Table approval letter from Chinese environmental authorities, or letter indicating no EIA document required Copy of any Chinese EIA or EIA table documentation Record of any public consultation Details of any public disclosure of Chinese EA documents For the Overall Enterprise or End-User Copies of operating permit, license, and all necessary government environmental approvals Copies of all environmental discharge permits (air, water land etc.) Copy of any EIA approval letter Construction start date EXIM BANK will then complete the Screening Form presented in Annex A and place it in the subproject file. If the overall Enterprise/End-User: (a) engages in any of the prohibited activities listed, (b) is not legally authorized to conduct business, (c) does not meet Chinese environmental standards, or (d) has outstanding environmental liabilities, the subproject would not be eligible for support. Generally, only subprojects with modest or no environmental issues which will be installed in legitimate Enterprises/End-Users whose operations meet all Chinese environmental requirements will be considered eligible for support. b) Environmental Documentation Chinese environmental screening procedures differ from World Bank Criteria presented in Annex A. Comparison of the two systems is presented in the Table below. It should be noted that the most likely situations are highlighted in yellow (i.e. Chinese EIA, likely a Category A). Nonetheless, since the two systems are different, it is possible for a subproject to require an EIA under the Chinese system, yet be assigned Category B under the World Bank system:

3 WORLD BANK SCREENING RESULTS CHINESE SCREENING RESULTS EIA EIA Table No EIA Requirement A X X B X X X C X X Since this project will not include Category A subprojects and Category C subprojects have no environmental assessment requirements, only the following three possibilities will be considered in the Framework: Category B/Chinese EIA Category B/Chinese EIA Table Category B/No Chinese EIA Requirement The only World Bank EA document requirement for a Category B subproject is an Environmental Management Plan (EMP). The required EMP format is presented in Annex B. The Sub-borrower (enterprise or ESCO) should utilize the approved Chinese EA documentation (either EIA or EIA Table) in preparing the EMP 1. If there was no Chinese EIA Requirement, the Sub-borrower (enterprise or ESCO) should consult with EXIM BANK to determine the issues EXIM BANK identified in Screening and prepare the EMP based upon those issues. c) Applicable Environmental Standards Subprojects requiring an EMP will include mitigating actions to assure compliance with environmental standards of performance. If both Chinese and World Bank standards are available for a particular mitigating measure, the stricter of the two standards would apply. For example, if the environmental issue of concern is noise and the World Bank noise standard is stricter than the Chinese standard, it is expected that the mitigating measure selected would be effective in meeting the stricter World Bank standard. World Bank environmental standards are those of the World Bank Group Environmental, Health, and Safety Guidelines (known as the "EHS Guidelines"). The EMP Mitigation section (see Annex B) includes a column to indicate the applicable standard appropriate to the particular mitigating measure: either Chinese standard or World Bank Standard (see: d) Public Consultation Public consultation is the responsibility of the Sub-borrower (Enterprise or ESCO). Projects assigned World Bank Category B are required to conduct a public consultation with locally affected groups. It may be performed either by: (i) a questionnaire survey, (ii) individual interviews, or (iii) a group meeting. Requirements for each of the three possibilities are presented below. 1 Generic EMP associated with the particular End-user subproject will be prepared for ESCO use.

4 Category B/Chinese EIA Chinese EIA regulations include public consultation for any project that requires Chinese EIA. The Sub-borrower would include this public consultation documentation as part of the Information Package provided to EXIM BANK (see Screening above). EXIM BANK should review the public consultation documentation and determine if all items required in a World Bank Public Consultation (see Annex B: EMP FORMAT --Public Consultation Documentation ) have been documented properly. If the public consultation documentation includes all the items indicated in Annex B, EXIM BANK should inform the Sub-borrower there are no further consultation requirements. If the public consultation documentation does not include all the items indicated in Annex B, EXIM BANK should inform the Sub-borrower that another public consultation is required, and that it must be carefully documented with all the information described in Annex B (EMP FORMAT --Public Consultation Documentation) Category B/Chinese EIA Table Chinese EIA regulations do not include public consultation for projects that require an EIA Table. However, World Bank environmental assessment procedures require public consultation. EXIM BANK should inform the Sub-borrower that a public consultation is required, and that it must be carefully documented with all the information described in Annex B (EMP FORMAT -- Public Consultation Documentation) Category B/No Chinese EIA Requirement Chinese EIA regulations do not include public consultation for projects that do not require any EIA document. However, World Bank environmental assessment procedures require public consultation. EXIM BANK should inform the Sub-borrower that a public consultation is required, and that it must be carefully documented with all the information described in Annex B (EMP FORMAT --Public Consultation Documentation) Any significant issues identified in the public consultation should be included in the EMP mitigation and monitoring plans. EXIM BANK must verify that this is done. e) Public Disclosure After a draft EMP is completed (including the Public Consultation), the Sub-borrower should disclose the EMP in a public place near the site of the proposed subproject and/or on the Subborrowers website or the ESCO/End-Users website). f) Review and Approval of Environmental Documentation After the draft EMP has been disclosed to the public, the Sub-borrower (enterprise or ESCO) should submit the following information to the EXIM BANK: Copy of the EMP (including Public Consultation Documentation) Details of the public disclosure Date Media/Location (newspaper, TV, radio, internet, or public places)

5 EXIM BANK should review this information to determine if it is consistent with the information included in any Chinese EA documentation, reflects any significant issues raised at the public consultation, and provides all necessary information as presented in Annex B. If satisfied, EXIM BANK should then inform the Sub-borrower that environmental aspects of the subproject have been satisfied. g) Related Conditions and Responsibilities Sub-Borrower Sub-Loan The agreement between the Sub-borrower (enterprise or ESCO) and EXIM BANK must include a condition obligating the Sub-borrower to implement the actions and procedures specified in the EMP. II. Subproject Implementation a) Supervision During the investment subproject tender, it is the responsibility of the Sub-borrower (enterprise or ESCO to assure that the requirements put forward in the EMP have been included in all tender documents. EXIM has the right to check tender documents to verify this condition. Satisfying these conditions is one prerequisite to winning the bid. During project implementation, the Sub-borrower (enterprise or ESCO) is responsible for insuring that the actions and procedures specified in the EMP are being faithfully implemented. EXIM BANK will have the right to visit projects and verify that the Sub-borrower/Contractors are meeting their obligations. EXIM BANK will be responsible for supervision of Sub-borrower (enterprise or ESCO) performance. As part of this supervision EXIM BANK will check selected documentation to verify that bid documents and construction/operation contracts include the obligations of EMP implementation. EXIM BANK will also check Sub-borrower supervision reports (see below) to verify if the Sub-borrower (enterprise or ESCO) examined contractor EMP implementation during their project supervision visits. b) Reporting Enterprise Sub-Loan The Sub-borrower, as part of their normal reporting to the EXIM BANK will include a section on environment. In this section, the Sub-borrower will briefly indicate implementation details of the EMP, any environmentally significant events and measures take to control them. ESCO Sub-Loan The ESCOs, as part of their normal reporting to EXIM BANK will include a summary of environmental performance of each of their End-User subprojects, noting in particular any End-User subproject having significant environmental management issues and the manner in which they were resolved.

6 EXIM BANK, as part of their normal reporting to the World Bank will include a summary of Sub-borrowers (Enterprise and ESCOs) performance. The report should indicate the degree to which EMP requirements were included in contract agreements, and bid documents and as appropriate any particular subprojects where environmental management issues were significant and the manner in which they were resolved.