documents.worldbank.orgdocuments.worldbank.org/curated/en/... · table of contents page 05-16005...

Environmental Assessment Framework for Regional Power Projects in Nile Basin Countries

Februrary 2008

consultants85 Sainte-Catherine Street West, Montréal, Québec, Canada

REGIONAL POWER TRADE PROJECT

Final Report

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Environmental Assessment Framework for Regional Power Projects in Nile Basin Countries

05-16005

consultants85 Sainte-Catherine Street West, Montréal, Québec, Canada

REGIONAL POWER TRADE PROJECT

Februrary 2008

Final Report

TABLE OF CONTENTS

page

05-16005 – Final Report – February 2008 Tecsult International

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MODULE 1

Executive Summary ............................................................................................................. 1

Résumé...............................................................................................................................17 E 1

MODULE 2

1 INTRODUCTION ................................................................................................... 1-1

1.1 Background ........................................................................................................... 1-1 1.2 Objective, purpose and scope of the EA framework for regional power

projects .................................................................................................................. 1-2 1.3 Contents of the EA framework ............................................................................... 1-3

2 NILE RIVER BASIN AND NILE BASIN INIATIVE................................................... 2-1

2.1 General description of the Nile basin ..................................................................... 2-1 2.2 NBI countries ......................................................................................................... 2-5

2.2.1 Eastern Nile countries ................................................................................ 2-6 2.2.2 Nile Equatorial Lakes countries .................................................................. 2-7

2.3 NBI strategic action program.................................................................................. 2-9

3 POWER SECTOR IN THE NBI COUNTRIES ........................................................ 3-1

3.1 Eastern Nile ........................................................................................................... 3-1 3.1.1 Egypt.......................................................................................................... 3-1 3.1.2 Sudan......................................................................................................... 3-3 3.1.3 Ethiopia ...................................................................................................... 3-5 3.1.4 Ethiopia-Sudan Transmission Interconnection Project................................ 3-6

3.2 Nile Equatorial Lakes ............................................................................................. 3-8 3.2.1 Current Situation of the Power Sector ........................................................ 3-8 3.2.2 NELSAP Power Development Strategy .................................................... 3-10

4 ENVIRONMENTAL AND SOCIAL FRAMEWORK AND PROCEDURES IN THE NILE BASIN COUNTRIES ............................................................................. 4-1

4.1 Environmental policy.............................................................................................. 4-2 4.2 EIA procedures and regulations............................................................................. 4-3 4.3 Water resources management policy..................................................................... 4-7 4.4 Climate change policies ......................................................................................... 4-9 4.5 Forest conservation / Biodiversity ........................................................................ 4-10 4.6 International environmental treaties and conventions........................................... 4-11 4.7 Land issues and resettlement policy .................................................................... 4-11 4.8 Poverty reduction and socio-economic development ........................................... 4-13 4.9 Public health policy .............................................................................................. 4-14 4.10 Vulnerable groups including women policy .......................................................... 4-15 4.11 Historical and cultural sites policy and regulation ................................................. 4-17 4.12 Indigenous community policy ............................................................................... 4-18

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4.13 Institutional framework in the NBI countries ......................................................... 4-20

5 ISSUES RELATED TO ENVIRONMENTAL ASSESSMENT CONSIDERED BY FUNDING AGENCIES...................................................................................... 5-1

5.1 Environmental policies ........................................................................................... 5-1 5.2 Environmental and social assessments procedures ............................................... 5-3 5.3 Natural resources management policy ................................................................... 5-6 5.4 Resettlement policy................................................................................................ 5-7 5.5 Poverty reduction ................................................................................................... 5-9 5.6 Public health ........................................................................................................ 5-10 5.7 Vulnerable groups including women..................................................................... 5-11 5.8 Historical and cultural sites policy......................................................................... 5-12 5.9 Indigenous communities policy............................................................................. 5-12 5.10 Participation / Consultation................................................................................... 5-13 5.11 Dams Policy......................................................................................................... 5-14 5.12 International Waterways Policy ............................................................................ 5-14

MODULE 3

6 SUSTAINABILITY IN REGIONAL POWER PROJECTS ........................................ 6-1

6.1 Millennium Development Goals.............................................................................. 6-1 6.2 Ecological aspects of power projects sustainability ................................................ 6-3 6.3 Social aspects of power projects sustainability....................................................... 6-6

6.3.1 Changes to the use of natural resources in the project area ....................... 6-7 6.3.2 Involuntary resettlement ............................................................................. 6-9 6.3.3 Indigenous communities ........................................................................... 6-12 6.3.4 Gender issues .......................................................................................... 6-13 6.3.5 Public health issues.................................................................................. 6-16 6.3.6 Physical cultural resources ....................................................................... 6-18 6.3.7 Participation and consultation of the stakeholders .................................... 6-19

6.4 Economic aspects of power projects sustainability ............................................... 6-22 6.5 Positive impacts of regional power projects on local communities........................ 6-25

7 ENVIRONMENTAL ASSESSMENT PROCESS FOR REGIONAL POWER PROJECTS............................................................................................................ 7-1

7.1 Justification of the EA framework for regional power projects................................. 7-1 7.2 Environmental assessment principles .................................................................... 7-3 7.3 General EA process for regional power projects .................................................... 7-8 7.4 Project identification ............................................................................................. 7-13

7.4.1 Pre-screening (Step 1).............................................................................. 7-13 7.4.1.1 Preparation of the Project Notice................................................ 7-13 7.4.1.2 Analysis of the Project Notice..................................................... 7-14

7.4.2 Screening (Step 2).................................................................................... 7-15 7.4.3 Environmental screening administrative procedure................................... 7-20

7.5 Project preparation............................................................................................... 7-21 7.5.1 Scoping (Step 3)....................................................................................... 7-22

7.5.1.1 Environmental scoping main activities and administrative procedure................................................................................... 7-22

7.5.1.2 Special social issues to consider at the scoping step ................. 7-24

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7.5.2 Impact Assessment (Step 4) .................................................................... 7-26 7.5.2.1 EA Instruments ...........................................................................7-26 7.5.2.2 Environmental Assessment Administrative Procedure ................7-30

7.6 Project appraisal and approval............................................................................. 7-30 7.6.1 Review of the studies (Step 5).................................................................. 7-30

7.6.1.1 Internal review ............................................................................7-33 7.6.1.2 External review (Disclosure of the studies and public

consultation) ...............................................................................7-33 7.6.1.3 Completion of the studies............................................................7-34

7.6.2 Decision-making (Step 6) ......................................................................... 7-34 7.6.3 Review and Decision-making Administrative Procedure........................... 7-35

7.7 Project Implementation and Supervision .............................................................. 7-37 7.7.1 ESMP implementation (Step 7) ................................................................ 7-37 7.7.2 Administrative procedures for the ESMP implementation ......................... 7-39

7.8 Project Post-Evaluation........................................................................................ 7-40 7.8.1 Auditing (Step 8) ...................................................................................... 7-40 7.8.2 Administrative procedures for the audit .................................................... 7-41

7.9 Institutional Responsibilities in the EA Process Implementation........................... 7-42

8 ISSUES TO CONSIDER IN THE PREPARATION OF EIA FOR REGIONAL POWER PROJECTS ............................................................................................. 8-1

8.1 Construction of power facilities .............................................................................. 8-1 8.2 Hydropower projects .............................................................................................. 8-7

8.2.1 General characteristics of hydropower projects .......................................... 8-7 8.2.2 Environmental issues related to hydropower projects................................. 8-9 8.2.3 Social issues related to hydropower projects............................................ 8-10 8.2.4 Potential impacts of hydropower projects and mitigation measures.......... 8-12

8.3 Thermal power projects ....................................................................................... 8-17 8.3.1 General characteristics of thermal power projects .................................... 8-17 8.3.2 Environmental issues related to thermal power projects........................... 8-17 8.3.3 Social issues related to thermal power projects........................................ 8-18 8.3.4 Impacts of thermal power projects and mitigation measures .................... 8-19

8.4 Geothermal power projects .................................................................................. 8-23 8.4.1 General characteristics of geothermal power projects .............................. 8-23 8.4.2 Environmental issues related to geothermal power projects ..................... 8-24 8.4.3 Social issues related to geothermal power projects .................................. 8-24 8.4.4 Potential impacts of geothermal power projects and mitigation

measures ................................................................................................. 8-25 8.5 Power transmission lines ..................................................................................... 8-28

8.5.1 General characteristics of power transmission lines ................................. 8-28 8.5.2 Environmental issues related to power transmission lines ........................ 8-29 8.5.3 Social issues related to power transmission lines..................................... 8-29 8.5.4 Impacts of power transmission lines and mitigation measures ................. 8-31

9 LIFE CYCLE AND SYSTEMS APPROACH IN THE EIA FRAMEWORK................ 9-1

9.1 Life cycle assessment in EA .................................................................................. 9-1 9.2 Definition of life cycle assessment ......................................................................... 9-2 9.3 Life cycle assessment international standards ....................................................... 9-4 9.4 Life cycle assessment in the EA process for regional power projects in

the NBI countries ................................................................................................... 9-5 9.5 Guidelines for conducting a life cycle assessment ................................................. 9-7

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9.5.1 Goal and scope of the project ..................................................................... 9-7 9.5.2 Inventory analysis (extraction and emission) ............................................ 9-10

9.5.2.1 Guidelines specific to hydropower projects ................................ 9-13 9.5.2.2 Guidelines specific to geothermal power plants.......................... 9-14 9.5.2.3 Guidelines specific to thermal power plants................................ 9-15 9.5.2.4 Guidelines specific to transmission lines .................................... 9-16

9.5.3 Impact assessment requirements ............................................................. 9-17 9.5.4 Impact assessment interpretation ............................................................. 9-20

10 ACCESS TO THE CLEAN DEVELOPMENT MECHANISM FUND ...................... 10-1

10.1 Overview of the Clean Development Mechanism ................................................. 10-1 10.1.1 Origins of the Clean Development Mechanism ......................................... 10-1

10.1.1.1 Climate Change Convention ...................................................... 10-1 10.1.1.2 Kyoto Protocol............................................................................ 10-2 10.1.1.3 Convention of Parties 7 (COP-7) in Marrakech .......................... 10-2

10.1.2 International Standards on GHG............................................................... 10-3 10.1.3 Advantages for the host country ............................................................... 10-4

10.2 Requirements and issues related to CDM projects............................................... 10-5 10.2.1 Basic CDM Project Requirements ............................................................ 10-5 10.2.2 Project Participants................................................................................... 10-6 10.2.3 Eligibility to participate in the CDM ........................................................... 10-7 10.2.4 CDM Project Costs ................................................................................... 10-7

10.2.4.1 Project Costs.............................................................................. 10-7 10.2.4.2 Transaction Costs ...................................................................... 10-7 10.2.4.3 Small-scale projects ................................................................... 10-8

10.2.5 Financing Options in a CDM Project ......................................................... 10-9 10.2.5.1 Full or Partial Equity ................................................................... 10-9 10.2.5.2 Financial Contribution .............................................................. 10-10 10.2.5.3 Loan......................................................................................... 10-11 10.2.5.4 CER Purchase Agreement ....................................................... 10-11

10.2.6 Risk, Ownership, and Legal Aspects ...................................................... 10-12 10.3 Establishing a National Authority........................................................................ 10-13

10.3.1 Definition ................................................................................................ 10-13 10.3.2 DNA functions ........................................................................................ 10-13

10.3.2.1 The Regulatory Function.......................................................... 10-14 10.3.2.2 The Promotional Function ........................................................ 10-18

10.3.3 Initial assessment ................................................................................... 10-19 10.3.4 Sustainable Development Criteria .......................................................... 10-22 10.3.5 Steps in Creating a DNA......................................................................... 10-24 10.3.6 Tasks assigned to the DNA .................................................................... 10-26

10.4 Frameworks and directives for developing and implementing a CDM for power project ................................................................................................ 10-27 10.4.1 Integration of CDM in the EA Process for Regional Power Projects........ 10-27 10.4.2 General CDM Process for power projects............................................... 10-29 10.4.3 Step 1: Project screening........................................................................ 10-30 10.4.4 Step 2: Project Development .................................................................. 10-31

10.4.4.1 Choose Project Boundary ........................................................ 10-31 10.4.4.2 Select project baseline ............................................................. 10-32 10.4.4.3 Set crediting period .................................................................. 10-34 10.4.4.4 Calculate Emission reductions ................................................. 10-35 10.4.4.5 Develop Emissions Monitoring and Verification Protocol .......... 10-36 10.4.4.6 Prepare Investment Plan and Undertake Financial Analysis .... 10-37

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10.4.4.7 Prepare Draft Project Design Document (PDD) ........................10-38 10.4.5 Step 3: National Approval....................................................................... 10-40

10.4.5.1 Undertake Environmental Impact Assessment..........................10-40 10.4.5.2 Obtain Stakeholders’ Comments...............................................10-41 10.4.5.3 Obtain Host Country Approvals.................................................10-41 10.4.5.4 Case of multilateral projects......................................................10-41

10.4.6 Step 4: Validation and Registration ........................................................ 10-42 10.4.7 Step 5: Implementation and Monitoring .................................................. 10-43 10.4.8 Step 6: Verification and Certification....................................................... 10-43

10.4.8.1 Verify and Certify Emissions Reductions (CERs) ......................10-43 10.4.8.2 Issuance of Certified Emissions Reduction ...............................10-44

10.5 Potential baselines and CDM eligible projects.................................................... 10-44

11 OPERATIONALIZATION OF THE EA FRAMEWORK ......................................... 11-1

11.1 Proposed enforcement mechanism...................................................................... 11-1 11.2 Capacity building in environmental management ................................................. 11-3

11.2.1 Workshops ............................................................................................... 11-3 11.2.2 Technical assistance ................................................................................ 11-5 11.2.3 Annual participative review....................................................................... 11-5

11.3 Preliminary budget to operationalize the EA framework ....................................... 11-5

LIST OF APPENDICES



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MODULE 4

APPENDIX 1 Bibliography APPENDIX 2 List of consulted stakeholders APPENDIX 3 Public consultation in the environmental assessment process APPENDIX 4 Content of an environmental screening form APPENDIX 5 Typical TOR for the EIA of category A power projects APPENDIX 6 Involuntary resettlement APPENDIX 7 Indigenous peoples APPENDIX 8 Accident Risk Management APPENDIX 9 Examples of Sustainable criteria and CDM guidelines APPENDIX 10 Baseline emissions calculations for power grids and net emissions

reductions calculations

LIST OF TABLES

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Table 2.1 Area of the Nile River basin by country....................................................... 2-1

Table 4.1 EA-related issues of regional power projects.............................................. 4-1

Table 4.2 National institutions concerned by the EA framework for power projects .................................................................................................... 4-20

Table 5.1 World Bank Safeguard Policies potentially applicable to power projects ...................................................................................................... 5-2

Table 6.1 Matrix of Energy and the MDGs in Africa.................................................... 6-2

Table 7.1 Criteria assigning Category A to power projects ....................................... 7-17

Table 7.2 Situations triggering safeguard policies other than OP 4.01 and subsequent actions to undertake.............................................................. 7-19

Table 7.3 EA instruments for regional power projects .............................................. 7-20

Table 7.4 Administrative procedure of environmental screening (steps 1 & 2) ......... 7-21

Table 7.5 Administrative procedure of environmental scoping (step 3)..................... 7-23

Table 7.6 Administrative procedure of environmental assessment (step 4) .............. 7-30

Table 7.7 Administrative procedure of the review and decision-making (steps 5 & 6) .......................................................................................................... 7-35

Table 7.8 Administrative procedure of the ESMP implementation (step 7) ............... 7-39

Table 7.9 Administrative procedure of project auditing (step 8) ................................ 7-42

Table 7.10 EA framework implementation responsibilities.......................................... 7-43

Table 8.1 Potential impacts, mitigation and enhancement measures common to regional power projects – construction phase............................................. 8-3

Table 8.2 Potential impacts, mitigation and enhancement measures specific to hydroelectric projects ............................................................................... 8-13

Table 8.3 Potential impacts, mitigation and enhancement measures specific to thermal power projects ............................................................................. 8-21

Table 8.4 Potential impacts, mitigation and enhancement measures specific to geothermal power projects ....................................................................... 8-26

Table 8.5 Potential impacts, mitigation and enhancement measures specific to power transmission lines .......................................................................... 8-32

Table 9.1 Atmospheric and liquid rejects indicators - World Bank maximum values....................................................................................................... 9-18

Table 9.2 Ambient air quality indicators of different world standing institutions......... 9-19

LIST OF TABLES

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Table 10.1 Summary of PCF Financial Contributions to Selected CDM Projects...... 10-11

Table 10.2 NBI countries and climate change .......................................................... 10-21

Table 10.3 Overview of Project Cycle, showing official timelines and responsibilities........................................................................................ 10-29

Table 10.4 Project screening criteria ........................................................................ 10-30

Table 10.5 Baseline methodologies for CDM Power Projects................................... 10-34

Table 10.6 Overview of Emissions Reductions Calculation ...................................... 10-36

Table 10.7 Identification of potential baseline scenarios and eligible projects based on the strategic power investment plans ...................................... 10-45

Table 11.1 Preliminary budget to operationalize the EA framework............................ 11-7

LIST OF FIGURES

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Figure 2.1 Nile River basin .......................................................................................... 2-3

Figure 3.1 Hydro scheme for the existing hydropower plants in Egypt......................... 3-2

Figure 3.2 Map of Sudanese Grid ............................................................................... 3-4

Figure 3.3 Existing and Committed Hydropower Plants in Ethiopia ............................. 3-7

Figure 3.4 Regional development of power and transmission requirements to 2015 in NEL countries .............................................................................. 3-13

Figure 7.1 Illustration of an environmental impact ....................................................... 7-5

Figure 7.2 General EIA Process.................................................................................. 7-7

Figure 7.3 Environmental Assessment Process for Regional Power Investment Projects ...................................................................................................... 7-9

Figure 7.4 Main steps of the EA process for regional power projects ........................ 7-12

Figure 7.5 Organisational chart of the EA process .................................................... 7-45

Figure 9.1 Comparison of LCA and EIA ...................................................................... 9-1

Figure 9.2 Typical Life Cycle (simplified model) for electrical power projects............... 9-3

Figure 9.3 LCA in the EA process for regional power projects..................................... 9-6

Figure 9.4 Simplified procedures for inventory analysis............................................. 9-12

Figure 10.1 Evaluation procedure ............................................................................. 10-17

Figure 10.2 CDM into the EA process for regional power projects............................. 10-28

Figure 11.1 Enforcement of the EA framework for regional power projects ................. 11-2

LIST OF BOXES

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Box 6.1 Guiding principles for the ecological sustainability of power projects .......... 6-6

Box 6.2 Guiding principles for the social sustainability of changes in the access to natural resources.................................................................................... 6-9

Box 6.3 Guiding principles for the social sustainability of resettlement................... 6-11

Box 6.4 Guiding principles of the social sustainability for indigenous communities ............................................................................................. 6-13

Box 6.5 Guiding principles to link gender equity and social sustainability .............. 6-16

Box 6.6 Guiding principles to link health and social sustainability .......................... 6-18

Box 6.7 Guiding principles to link physical cultural resources and social sustainability............................................................................................. 6-19

Box 6.8 Guiding principles to link public consultation and social sustainability....... 6-22

Box 6.9 Guiding principles to take into account economic aspects of projects sustainability............................................................................................. 6-24

Box 6.10 Guiding principles to improve positive impacts of power projects on local communities ..................................................................................... 6-25

Box 7.1 Contents of a Project Notice ..................................................................... 7-13

Box 7.2 Contents of a Project Notice Analysis ....................................................... 7-14

Box 7.3 Involuntary resettlement at the screening step.......................................... 7-18

Box 7.4 Indigenous peoples at the screening step................................................. 7-18

Box 7.5 Contents of an EIA Report........................................................................ 7-27

Box 7.6 Contents of an ESMP ............................................................................... 7-29

Box 7.7 EIA review criteria..................................................................................... 7-32

Box 10.1 Transaction costs ..................................................................................... 10-8

Box 10.2 Key international criteria ......................................................................... 10-15

Box 10.3 Key national elements which should be evaluated.................................. 10-16

Box 10.4 Capacity building opportunities areas ..................................................... 10-18

Box 10.5 Political and technical prerequisites to create a DNA.............................. 10-19

Box 10.6 Criteria that can be used for CDM project screening............................... 10-23

LIST OF ACRONYMS AND ABBREVIATIONS


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AfDB African Development Bank

BP Bank Procedure

Bkwh Billion kilowatt-hours

BOT Build-Operate-Transfer

CER Certified emissions reduction

CDD Community Driven Development

CDM Clean Development Mechanism

CH4 Methane

CIDA Canadian International Development Agency

CO Carbon monoxide

CO2 Carbon dioxide

COP Convention of Parties

DNA Designated National Authority

DOE Designated Operational Entity

DRC Democratic Republic of Congo

EA Environmental Assessment

EAC East African Community

EB Executive Board

EC European Commission

EEAA Egyptian Environmental Affairs Agency

EEHC Egyptian Electricity Holding Co

EEPCO Ethiopian Electric Power Corporation

EIA Environmental Impact Assessment

EMP Environmental Management Plan

ENSAP Eastern Nile Subsidiary Action Programs

ENTRO Eastern Nile Technical Regional Office

ESA Environmental Sensitive Area

ESIA Environmental and Social Impact Assessment

ESMP Environmental and Social Management Plan

EU European Union

EWRMP Ethiopia’s Water Resource Management Policy

FA Funding agency

FEMA Forum of Energy Ministers of Africa

GHG Greenhouse gas

GIS Geographic Information System

GW Gigawatts




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GWP Global Warming Potential

HCENR High Council of Environment and Natural Resources

HFC Hydrofluorocarbone

HIA Health Impact Assessment

HIPC Heavily Indebted Poor Countries

H2S Hydrogen sulphide gas

IHA International Hydropower Association

IMF International Monetary Fund

IPCC International Panel on Climate Change

IPP Independent Power Project

ISO International Organization for Standardization

LCA Life Cycle Assessment

LCI Life Cycle Inventory

LCIA Life cycle impact assessment

LPG Lamp Petroleum and Gas

MDGs Millennium Development Goals

MW Megawatts

MWRI Ministry of Water Resources and Irrigation

M&V Monitoring and verification

NA National Authority

NAPA National Adaptation Programme of Action

NBI Nile Basin Initiative

NC National Communication

NCCSC National Climate Change Steering Committee

NEA National Environmental Authority

NEAP National EA Process

NEC National Electricity Corporation

NELSAP Nile Equatorial Lakes Subsidiary Action Program

NEMA National Environmental Management Authority

NEMC National Environment Management Council

Nile-COM Nile Council of Ministers

Nile-SEC Secretariat of the Nile Basin

Nile-TAC Nile Technical Advisory Committee

NELSAP Nile Equatorial Lakes Regions Subsidiary Action Programs

NGO Non governmental organization

NGP National Gender Policy



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NOx Nitrogen oxides

OE Operational Entity

OECD Organisation de Coopération et de Développement Économiques

PAP Project affected people

PCF Prototype Carbon Fund

PDD Project Design Document

PFC Perfluorocarbon

PIGU Projet d’Infrastructures et de Gestion Urbaine

PMU Project Management Unit

PMURR Programme Multisectoriel d’Urgence de Réhabilitation et de Reconstruction

PP Project Proponent

PRADECS Projet d'appui au développement communautaire et social

PRASAB Projet de Réhabilitation et d’Appui au Secteur Agricole du Burundi

PRSP Poverty Reduction Strategy Paper

PUAACV Projet d’Urgence d’Appui à l’Amélioration des Conditions de Vie

RAP Resettlement Action Plan

REAWG Regional Environmental Assessment Working Group

REAP Regional EA Process

REGIDESO Régie de Production et de Distribution de l’Eau et de l’Électricité

RPT Regional Power Trade

RPTP Regional Power Trade Project

SAP Subsidiary Action Programs

SAPP Southern African Power Pool

SD Sustainable Development

SEA Strategic Environmental Assessment

SF6 Sulphur hexafluoride

SSEA Strategic/Sectoral, Social and Environmental Assessment

STD Sexually transmitted diseases

SO2 Sulphur dioxide

SVP Shared Vision Program

TANESCO Tanzania Electric Supply Company Ltd

TOR Terms of reference

TRC Technical Review Committee

UN United Nations

UNEP United Nations Environmental Program

UNDP United Nations Development Program




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UNFCCC United Nations Framework Convention on Climate Change

WHO World Health Organization

GLOSSARY


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Compensation Monetary payment or replacement in kind for an asset (or a resource) to be acquired or affected by a project at full replacement cost that is, the market value of the assets plus transaction costs without considering the depreciation of the asset. Elementary flow Material or energy entering or leaving the product system without human transformation. Environment Organised and dynamic system evolving over time and including biophysical and human factors and in which living organisms act and where human activities take place. Environmental aspect or emission Element of the product system that can interact with the environment. Environmental assessment (EA) Systematic process for evaluating and documenting the capacities and functions of resources and of natural and human systems in order to facilitate the planning of sustainable development and the decision process in general, as well as forecasting and managing negative impacts and the consequences of development proposals. Environmental audit An instrument to determine the nature and extent of all environmental areas of concern at an existing facility. The audit identifies and justifies appropriate measures to mitigate the areas of concern, estimates the cost of the measures, and recommends a schedule for implementing them (World Bank OP 4.01 Annex A). Environmental impact Effect, for a period of time and within a specific space, of a human activity on an environmental or human component, compared with the “without project” situation. Environmental impact assessment (EIA) Instrument to examine the environmental consequences, both beneficial and adverse, of a proposed development project and to ensure that these consequences are taken into account in project design. Environmental and social management plan (ESMP) Instrument that outlines the measures to prevent, minimise, mitigate or compensate for adverse environmental impacts and to enhance beneficial impacts. It specifies how, when and by whom these measures shall be implemented. Environmental monitoring Step of the EA process consisting to ensure that the environment is respected and that the mitigation measures required are applied during construction and operation of the project. Health A complete state of physical and mental well being and not merely the absence of disease and infirmity.

GLOSSARY



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Involuntary resettlement All direct economic and social losses resulting from land taking and restriction of access, together with the consequent compensatory and remedial measures. Resettlement can, depending on the case, include (a) acquisition of land and physical structures on the land, including businesses; (b) physical relocation; and (c) economic rehabilitation of displaced persons, to improve (or at least restore) incomes and living standards (World Bank’s Involuntary Resettlement Sourcebook). Life cycle Consecutive and interlinked stages of a product system from raw material acquisition or generation of natural resources to the final disposal. Life cycle assessment Compilation and evaluation of the inputs, outputs and potential environmental impacts of production system throughout its life cycle. Mitigation Activity aimed at reducing the severity, avoiding or controlling environmental impact of a project. Person affected by a project Any person (individual, household or community) who, as a result of the implementation of a project, loses the right to own, use, or benefit from a built structure, land (residential, agricultural, or pasture), annual or perennial crops and trees, or any other fixed or moveable asset, either in full or in part, permanently or temporarily. Physical displacement Loss of housing and assets resulting from the acquisition of land associated with a project that requires the affected person(s) to move to another location. Product system Collection of materially and energetically connected unit processes which forms one or more defined functions. Project area of influence The area likely to be affected by the project, including all related facilities, such as power transmission corridors, pipelines, canals, tunnels, relocation and access roads, borrow and disposal areas, and construction camps, as well as unplanned developments induced by the project. Resettlement action plan The document in which a project proponent or other responsible entity specifies the procedures that it will follow and the actions that it will take to mitigate adverse effects, compensate losses, and provide development benefits to persons and communities affected by a project. Risk assessment Instrument for estimating the probability of harm occurring from the presence of dangerous conditions or materials at a project site. Stakeholder All individuals, groups, organizations, and institutions interested in and potentially affected by a project or having the ability to influence a project.

GLOSSARY


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Transboundary impact Any impact, not exclusively of a global nature (such as climate change, ozone depletion, biodiversity, etc.), within an area under the jurisdiction of a country caused by a proposed activity which the physical origin is situated wholly or in part within the area under the jurisdiction of another country. Vulnerable group Distinct group of persons characterised by a higher risk and reduced ability to cope with adverse impacts by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status.

MO

DU

LE 1

MODULE 1Executive Summary / Résumé

Nile Basin Initiative – Regional Power Trade Project Environmental Assessment Framework for Regional Power Projects in Nile Basin Countries


1

EXECUTIVE SUMMARY

Background

The Nile riparian countries (Burundi, Democratic Republic of Congo, Egypt, Ethiopia, Kenya,

Rwanda, Sudan, Tanzania and Uganda) established in February 1999 the Nile Basin

Initiative (NBI) to address common concerns and interests, particularly poverty alleviation.

The Vision of the NBI is to achieve sustainable socio-economic development through the

equitable utilization of, and benefit from, the Nile basin water resources. To translate this

Vision into action, the NBI includes two main components: a basin-wide Shared Vision

Program (SVP) and Subsidiary Action Programs (SAP).

The Regional Power Trade Project (RPTP) is one of the components of the Shared Vision

Program. The RPTP is to be implemented basin-wide to help establish a foundation for

transboundary regional cooperation and to create an enabling environment suitable for

investments and action on ground within an agreed basin-wide framework. The RPTP aims

to establish the institutional means to coordinate the development of regional power trade

and markets among the NBI countries.

The Nile Basin covers an area of nearly 3.1 million km2 representing about 10% of the

African continent (Figure 1). Table 1 shows the distribution of the basin within the

10 riparians countries. The two downstream countries of the basin, Sudan and Egypt,

encompass 63% and 10% of the Nile river basin. At the opposite, upstream countries such

as Burundi, DRC and Rwanda occupy each less than 1% of the basin.

Table 1 Area of the Nile River basin by country

CountryTotal area

(km²)Basin area in country (km²)

% of the country

% of the basin

Burundi 27 834 14 318 51.4 0.5DRC 2 345 000 28 180 1.2 0.9Egypt 995 450 304 246 30.6 9.8Eritrea 121 320 24 699 20.4 0.8Ethiopia 1 127 127 349 625 31.0 11.3Kenya 582 650 44 599 7.7 1.4Rwanda 26 338 20 917 79.4 0.7Sudan 2 505 810 1 947 683 77.7 63.0Tanzania 945 087 115 219 12.2 3.7Uganda 250 066 241 359 96.5 7.8Total 8 926 682 3 090 844 34.6 100.00




2

In the Nile basin region, cheap and reliable supply of electricity is a critical input for

economic growth, employment generation and poverty alleviation. The power sector in the

NBI countries is quite diversified, but in general does not meet the total demand in power. It

includes a variety of hydropower, thermal power and geothermal power facilities, as well as

power transmission lines and some interconnections. Table 2 below presents a synopsis of

the existing situation in the NBI countries, and potential power investment plans as identified

in the major power master plans.

Table 2 Power sector in the NBI countries

Countries Current energetic picture Strategic energetic investment plans

Burundi 100% hydroelectric 100% hydroelectric

Democratic Republic of Congo

84.3% hydroelectric 15.7% thermal

52.3% methane (Kivu Lake) 47.7% hydroelectric

Egypt 86% thermal 13% hydroelectric 1% wind

69.3% natural gas 21.5% wind 8.2% nuclear 1% hydroelectric

Ethiopia 87.4% hydroelectric 11.6% thermal 1% geothermal

97.4% hydroelectric 2.6% coal

Kenya

58.3% hydroelectric 17.9% diesel 11.3% geothermal 10.1% gas 2.3% steam

45.6% coal 42.4% geothermal 6% natural gas 6% wind

Rwanda 75.6% hydroelectric 24.4% diesel

57.8% hydroelectric 42.2% methane (Kivu Lake)

Sudan 59% thermal 41% hydroelectric

45.5% hydroelectric 36.8% gas oil 17.2% HFO 0.5% diesel

Tanzania 70.7% hydroelectric 29.3% thermal

31.1% natural gas 1% diesel 67.9% hydroelectric

Uganda 97.5% hydroelectric 2.5% thermal 100% hydroelectric

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Review of EIA Frameworks and Procedures in Regional Power Investment Projects

NILE RIVER BASIN

Sources :

FAO, Aquastat, 2005

WGS 84

February 2008

0 100 200 300 400 km

Figure 1International boundary



5

Environmental assessment frameworks of NBI countries and funding agencies

The level of detail of the environmental assessment (EA) procedures and frameworks of the

Nile basin countries varies significantly from one country to another. Some countries such as

Egypt and Ethiopia do have comprehensive EA regulations and guidelines, whereas in some

other countries (Burundi and Rwanda for example), EA is essentially based on the general

principles stated by the Law. Key social issues, such as resettlement, indigenous

communities, gender and cultural heritage, are not necessarily covered by EIA frameworks

of each country. Considering the NBI’s Vision which is to achieve sustainable socio-

economic development, the key social issues shall be properly taken into account while

evaluating specific regional power projects in the NBI countries.

No specific framework for power projects exists in the Nile basin countries. However, in

Ethiopia and Egypt for example, there are some EIA guidelines for power projects that can

be considered at the same level as international best practices.

In general, EA frameworks of funding agencies, especially World Bank and European Union,

are much more detailed and restricting than frameworks of NBI countries. Apart from general

EIA guidelines, the funding agencies do not also have specific EA frameworks for regional

power projects. The International Hydropower Association (IHA) has a set of comprehensive

sustainability guidelines for new and existing hydropower projects.

Considering the diversity of EA procedures and frameworks of the NBI countries, funding

agencies and international initiatives, as well as the potential transboundary power projects

in the pipeline, it is justified to develop and enforce a comprehensive standard framework of

integrated environmental and social impact assessment, applicable to all regional power

projects in the NBI countries, inspired from international and regional initiatives, and

complying with international practices and NBI countries’ policies and regulations.

Components of the EA framework for regional power projects

The main objective of this EA framework, which integrates environmental and social issues

of power projects, is to contribute to NBI’s vision, which is to achieve sustainable socio-

economic development through the equitable utilization of, and benefit from, the Nile basin

water resources. Another objective is to plan and implement the regional power projects

according to best practices as far as sustainable development is concerned.




6

In this EA framework, guiding principles to achieve sustainable development through

regional power projects cover ecological, social and economic aspects of projects

sustainability. These guiding principles take into consideration the achievement of the

Millennium Development Goals and important issues such as biodiversity, involuntary

resettlement, changes to the environment and resource use in the area, indigenous

communities, gender issues, public health issues, economic development, physical cultural

resources, participation and consultation of the stakeholders, and positive impacts of the

power projects on local communities.

In order to integrate all these ecological, social and economic guiding principles in the

projects’ cycle phases, a comprehensive environmental assessment process has been

elaborated (see Figure 2). The EA process for NBI regional power projects complies with the

general environmental impact assessments that are applied by most national environmental

agencies and funding agencies, notably the World Bank and the African Development Bank.

It follows the project cycle phases: i) identification; ii) preparation; iii) appraisal and approval;

iv) implementation and supervision; v) post-evaluation. Eight steps are defined for the EA

process: 1) pre screening; 2) screening; 3) scoping: 4) impact assessment; 5) review;

6) decision-making; 7) ESMP implementation and; 8) auditing.

At the project identification phase, the EA screening consists to determine if the power

project is subjected to the Regional EA Process (REAP). Hydropower, thermal, geothermal

and transmission lines projects are subjected to the REAP if i) The project affects or

provides benefits to at least two NBI countries; ii) The project is likely to cause significant

adverse transboundary impacts; or iii) The project is likely to cause significant adverse

impacts on an international heritage site. In any case that the REAP is triggered, it is not

necessary to duplicate the process by implementing the NEAP, because the REAP

harmonizes the EA requirements of all NBI countries and funding agencies in general. The

screening of the project consists also to determine the category of the project and therefore,

the types of environmental and social studies to be carried out before decision-making.

At the project preparation phase, the objective of environmental scoping is to prepare the

Terms of Reference (TOR) of the environmental and social studies in accordance with

applicable national legislation and policies of the funding agency such as World Bank

safeguard policies, while consulting affected groups and local NGOs. The NEA of the

project country of origin approves the TOR prepared by the project proponent.

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8

The impact assessment step comprises three main activities: 1) preparation of the studies;

2) further public consultations and; 3) review of compliance. Category A projects require a

full Environmental Impact Assessment (EIA), an Environmental and Social Management

Plan (ESMP), a Life Cycle Assessment (LCA). The EA of a Category B project may include a

limited EIA or only an ESMP. Most social issues triggered by power and interconnection

projects will be integrated in the terms of references of the EIA. However, it is likely that a

Resettlement Action Plan (RAP) will be required for most NBI projects at the EIA stage. In

some cases, indigenous people issues may also require special studies.

At the project appraisal and approval phase, the review of the studies comprises : 1) Internal

review of the studies, including the national approval of a Clean Development Mechanism

(CDM) project; 2) External review through disclosure and public consultation; 3) Completion

of the studies; and 4) Decision making. This decision may be to authorize the project, with or

without changes and under some conditions, or to turn down the project, and submitted to

the funding agency for non-objection. Finally, it is important to ensure that the environmental

recommended measures be integrated in the tender and contracting documents.

At the ESMP implementation phase, step 7 of the EA process consists basically to ensure,

during the whole life of the power project, that the measures identified to offset, mitigate or

compensate the environmental and social adverse impacts are properly executed. Finally, at

the project post-evaluation phase, the last step of the EA process include: 1) Environmental

and social audit; and 2) Review of the audit. Environmental auditing is an objective

examination of whether or not practice complies with expected standard.

In order to facilitate the identification and mitigation of the environmental and social impacts

of regional power projects during the preparation of EIAs of such projects in the NBI

countries, this EA framework identifies issues to consider for hydropower, thermal and

geothermal power, as well as for power transmission lines.

As far as hydroelectric projects are concerned, the operation of dams and reservoirs include

several activities or components that can potentially induce significant environmental and

social impacts. Issues include changes in the river system, fisheries and wildlife, non-

resident workers, agriculture and resettlement. Since this type of project often involves

important land acquisition and involuntary resettlement, the project design shall be based on

a comprehensive analysis of alternatives.



9

Environmental impacts from thermal power plant operation normally include those on

ambient air, water and soil quality, and the disposal of solid wastes. Impacts on vegetation,

wildlife, local populations, and the health and safety of workers must also be considered.

On the environmental point-of-view, geothermal energy offers a number of advantages over

fossil fuel used by thermal power plants. Indeed, geothermal energy is clean and safe for the

surrounding environment. Moreover, geothermal energy is competitive on the economic

standpoint and reduces reliance on costly fossil fuels.

Power transmission and distribution lines can open up remote lands to human activities such

as settlement, agriculture, hunting, recreation, etc. Construction of the power line right-of-

way can result in the loss and fragmentation of habitat and vegetation along the line. These

effects can be significant if natural areas, such as wetlands or natural forests are affected, or

if the newly-accessible lands are the home of indigenous peoples.

To better guide the preparation of environmental studies on regional power projects, it will be

important that detailed EIA guidelines for power sector activities be prepared based on this

EA Framework in the near future in order to harmonise the contents of the future studies.

Life Cycle Assessment

This EA framework considers also the integration of Life Cycle Assessment (LCA) in the EA

of a regional power project. This approach is quite innovative but also interesting

considering that, on a spatial scale, LCA is a global process encompassing the project from

“cradle to grave”, which makes it complementary to the EIA studies. The LCA study needs to

cover the various stages of the project life cycle, namely extraction and preparation of the

raw materials and energy; construction of infrastructures, machines and inputs, as well as

transportation; main production phase (in this case: electricity production) and transportation;

waste processing; and finally decommissioning of the plant.

LCA is divided into 4 steps: 1) identification of the goal and scope, 2) inventory analysis,

3) impact assessment requirements, and 4) impact assessment interpretation. Figure 3

shows the relation between LCA and the EA process for regional power projects.




10

Figure 3 Life cycle assessment in the EA process

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11

Clean Development Mechanism

The Clean Development Mechanism (CDM), developed under the umbrella of the Kyoto

Protocol, is of greatest interest to the developing world because it allows channelling foreign

investment to these countries to promote sustainable development and abate greenhouse

gas emissions while generating certified emission reduction units (CERs) that industrialized

nations can apply towards meeting their own emission reduction targets. To be eligible to

CDM funds a project have to lead to real and measurable GHG emissions reductions, to

result in additional GHG emissions reductions, and to contribute to sustainable development

in the host country. Besides, more than one country can host an eligible project.

In most cases, selling certified emission reduction units (CERs) through the CDM will provide

only part of the financing necessary for the project. Thus this source of “carbon financing”

will still need to be completed with conventional financing (full or partial equity, financial

contribution, loan or certified emissions reduction purchase agreement).

Figure 4 presents an overview of the integration of CDM in the EA process for regional

power projects. During the whole process, the proponent will have to constitute a Project

Design Document (PDD) which will be evaluated in turn by the Designated National

Authority and the Executive Board (EB) of CDM. Designated Operational Entities (DOE) will

have to report to the EB on the content of the PDD, and on the monitoring of emissions

reductions before the first CERs being issued by the EB.

One of the first and the most crucial elements of the PDD is the baseline scenario. The

baseline of a project is a measure of the emissions that would have occurred in the absence

of the proposed project activity, and is used to estimate the emissions reductions from the

project. Table 3 identifies the potential baseline scenarios in the NBI countries and therefore,

the eligible projects based on the strategic power investment plans.

Operationalization of the EA framework

The process to enforce the EA framework for regional power projects is illustrated on

Figure 5. The proposed enforcing Protocol shall be ratified by each NBI country, through

regulations signed by the Minister in charge of Environment.




12

Figure 4 CDM in the EA process

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13

Table 3 Potential baseline scenarios and eligible projects based on the strategic power investment plans

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(2) Source: Eastern Nile Power Trade Program Study, EDF – Generation and Engineering Division, March 2007 (3) HFO: heavy fuel oil

In order to ensure the implementation of the EA framework and based on a comprehensive

institutional analysis, it is essential that the concerned staff of the institutional organisations

involved in the process be trained and become familiar with the components of the EA

framework. This EA framework proposes a preliminary capacity building program that will

have to be validated by the proposed analysis of NBI countries environmental institutions.

The preliminary budget required to operationalize the EA framework for regional power

projects is estimated at US$1.62 million during the 10 years following its acceptance by NBI

authorities (Table 4). It is based on the assumption that 30 regional power projects will be

evaluated in the next 10 years in the NBI countries.

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17

RÉSUMÉ

Contexte

Les pays riverains du Nil (Burundi, République Démocratique du Congo, Égypte, Éthiopie,

Kenya, Rwanda, Soudan, Tanzanie et Ouganda) ont mis en place en février 1999 l’Initiative

du Bassin du Nil (NBI) pour prendre en compte leurs préoccupations et intérêts communs,

notamment la lutte contre la pauvreté. La Vison du NBI est de réaliser un développement

socio-économique durable par l’utilisation et le partage équitable des ressources en eau du

bassin du Nil. Afin de mettre en œuvre cette Vision, le NBI comprend deux principales

composantes, soit le Shared Vision Program (SVP) et le Subsidiary Action Programs (SAP).

Le Regional Power Trade Project (RPTP) est un des projets du Shared Vision Program. Le

RPTP est mis en œuvre afin de mettre en place les fondations d’une coopération régionale

transfrontalière et de créer un environnement propice aux investissements et aux actions sur

le terrain dans un cadre commun à l’échelle du bassin versant. Le RPTP vise à établir les

moyens institutionnels pour coordonner le développement d’échanges et de marchés

régionaux d’électricité au sein des pays du bassin du Nil.

Le bassin du Nil couvre une superficie de près de 3,1 millions km2 représentant environ 10%

du continent africain (figure 1). Le tableau 1 démontre la répartition du bassin à l’intérieur

des 10 pays riverains. Les deux pays à l’aval du bassin, soit le Soudan et l’Égypte,

englobent respectivement 63% et 10% du bassin du Nil. À l’opposé, les pays en amont

comme le, la RDC et le Rwanda occupent chacun moins de 1% de la superficie du bassin.

Tableau 1 Superficie du bassin du Nil par pays

PaysSuperficie

totale (km²)Superficie du bassin

par pays (km²)% du pays % du bassin

Burundi 27 834 14 318 51,4 0,5RDC 2 345 000 28 180 1,2 0,9Égypte 995 450 304 246 30,6 9,8Éritrée 121 320 24 699 20,4 0,8Éthiopie 1 127 127 349 625 31,0 11,3Kénya 582 650 44 599 7,7 1,4Rwanda 26 338 20 917 79,4 0,7Soudan 2 505 810 1 947 683 77,7 63,0Tanzanie 945 087 115 219 12,2 3,7Ouganda 250 066 241 359 96,5 7,8Total 8 926 682 3 090 844 34,6 100,00




18

Dans les pays du bassin du Nil, l’approvisionnement fiable en électricité à prix modique est

une condition essentielle à la croissance économique, la création d’emplois et la lutte contre

la pauvreté. Le secteur de l’électricité dans les pays du NBI est assez diversifié, mais ne

répond pas de manière générale à la demande totale en électricité. Le secteur inclut une

variété de centrales hydroélectriques, thermiques et géothermiques, ainsi que des lignes de

transport de l’électricité et des interconnections. Le tableau 2 ci-dessous dresse le portrait

de la situation énergétique dans les pays du bassin du Nil, et les plans d’investissements

énergétiques tel qu’identifiés par les principaux plans directeurs.

Tableau 2 Secteur de l’électricité dans les pays du bassin du Nil

Pays Situation énergétique Plan d’investissements énergétiques

Burundi 100% hydroélectrique 100% hydroélectrique

RDC 84,3% hydroélectrique 15,7% thermique

52,3% méthane (Lac Kivu) 47,7% hydroélectrique

Égypte 86% thermique 13% hydroélectrique 1% éolien

69,3% gaz naturel 21,5% éolien 8,2% nucléaire 1% hydroélectrique

Éthiopie 87,4% hydroélectrique 11,6% thermique 1% géothermique

97,4% hydroélectrique 2,6% charbon

Kenya

58,3% hydroélectrique 17,9% diesel 11,3% géothermique 10,1% gaz naturel 2,3% vapeur

45,6% charbon 42,4% géothermique 6% gaz naturel 6% éolien

Rwanda 75,6% hydroélectrique 24,4% diesel

57,8% hydroélectrique 42,2% méthane (Lac Kivu)

Soudan 59% thermique 41% hydroélectrique

45,5% hydroélectrique 36,8% gaz naturel 17,2% HFO 0,5% diesel

Tanzanie 70,7% hydroélectrique 29,3% thermique

31,1% gaz naturel 1% diesel 67,9% hydroélectrique

Ouganda 97,5% hydroélectrique 2,5% thermique 100% hydroélectrique

Ò

Ò

Ò

Ò

Ò

ÒÒ

Ò

Ò

Ò

!\

!\

!\

!\

!\

!\

!\

!\BUJUMBURA

KAMPALA

Sennar

Finchaa

Roseires

Owen Falls

Esna

Aswan

Assiut

Khashm El Gibra

Nag-Hamady

Jebel Aulia

1er Cataracte

2e Cataracte

3e Cataracte

4eCataracte

5eCataracte

6e Cataracte

SOUDAN

RÉP. DÉM.DU CONGO

TCHAD

ÉGYPTE

ÉTHIOPIE

KÉNYA

ARABIE SAOUDITE

LIBIE

UGANDA

SOMALIE

IRAQ

RÉPUBLIQUE CENTRAFRICAINE

YÉMEN

TANZANIE

ÉRITRÉE

JORDANIE

SOMALIE

BURUNDI

RWANDA

DJIBOUTI

ISRAËL

SYRIELIBAN

CAIRO

ASMARAKHARTOUM

ADDIS ABEBA

KIGALI

NAIROBI

OCÉANINDIEN

Mer Méditerranée

Mer Rouge

LacVictoria

LacAlbert

LacEdward

LacKivu

LacTanganyika

LacKyoga

LacTurkana

LacTana

Nil

Blan

c

R. Sabat

Nil

LacNasser

Nil

R. Atbara

Nil Bleu

R.Ka

gero

R. Semliki

LégendeCapitale nationale

Barrage

Bassin du Nil

Pays du bassin du Nil

Ò

!\


BASSIN DU NIL

Sources :

FAO, Aquastat, 2005

WGS 84

Février 2008

0 100 200 300 400 km

Figure 1Frontière internationale



21

Cadres d’évaluation environnementale des pays du NBI et des bailleurs de fonds

Le niveau de détails des procédures d’évaluation environnementale et sociale des pays du

bassin du Nil varie grandement d’un pays à l’autre. Certains pays tels que l’Égypte et

l’Éthiopie ont des réglementations et directives détaillées alors que dans d’autres pays

comme le Burundi et le Rwanda, l’évaluation d’impact environnemental est essentiellement

basée sur des principes généraux définis par la loi. Les enjeux sociaux importants, tels que

la réinstallation involontaire des populations, les communautés autochtones, le genre et le

patrimoine culturel ne sont pas systématiquement couverts par les procédures des pays

membres du NBI. Considérant la Vision du NBI qui est de réaliser un développement socio-

économique durable, ces enjeux doivent être adéquatement considérés lors de l’évaluation

des projets régionaux de production électrique dans les pays du NBI.

Généralement, les cadres d’évaluation environnementale des bailleurs de fonds, notamment

ceux de la Banque mondiale et de l’Union Européenne, sont nettement plus détaillés et

restrictifs que ceux des pays membres du NBI. Cependant, il n’existe pas, au niveau des

bailleurs de fonds de cadres spécifiques d’’évaluation environnementale de projets

régionaux de production électrique. Toutefois, l’Association Internationale d’Hydroélectricité

(IHA) dispose d’un ensemble de directives applicables aux projets hydroélectriques.

Compte tenu de la diversité des cadres de gestion et des procédures d’évaluation

environnementale des pays membres du NBI, des bailleurs de fonds et des initiatives

internationales, de même que les impacts transfrontaliers des projets d’électricité en

préparation, il apparaît opportun de développer et d’instaurer un cadre d’évaluation

environnementale (CÉE) applicable à tous les projets régionaux de production d’électricité.

Composantes du cadre d’évaluation environnementale proposé

Le principal objectif de ce CÉE, qui intègre les problématiques environnementales et

sociales, est de contribuer à l’application de la vision du NBI sur le développement socio-

économique durable par l’utilisation et le partage équitable des ressources en eau du bassin

du Nil. Par ailleurs, le CÉE vise à planifier et mettre en œuvre des projets régionaux

d’électricité conformes aux bonnes pratiques de développement durable.

Dans le cadre de ce CÉE, les principes directeurs de développement durable à travers les

projets régionaux d’électricité concernent les aspects écologiques, sociaux et économiques




22

de la durabilité des projets. Ces principes prennent en considération les objectifs du

Millénaire pour le Développement des Nations Unies et d’importants enjeux tels que la

biodiversité, la réinstallation involontaire, les changements dans l’environnement et

l’utilisation des ressources naturelles, les populations autochtones, les questions de genre,

la santé publique, le patrimoine culturel, la participation et la consultation des populations et

les impacts positifs des projets de production électrique sur les communautés locales.

Afin d’intégrer ces principes directeurs du développement durable dans le cycle du projet, un

processus détaillé d’évaluation environnementale (ÉE) a été élaboré (voir figure 2). Le

processus d’ÉE pour les projets régionaux de production électrique est conforme aux

principes d’évaluation environnementale appliqués par les agences environnementales des

pays du NBI et les bailleurs de fonds, notamment la Banque Mondiale et la Banque Africaine

de Développement. Il décrit chacune des étapes durant le cycle du projet: i) identification;

ii) préparation; iii) analyse et approbation; iv) mise en œuvre et supervision; v) évaluation. Le

processus comporte huit étapes : 1) tri préliminaire; 2) tri; 3) cadrage; 4) évaluation

environnementale; 5) analyse; 6) prise de décision; 7) mise en œuvre du Plan de Gestion

Environnementale et Sociale (PGES) ; 8) vérification environnementale (audit).

À la phase d’identification du projet, le tri préliminaire consiste à déterminer si le processus

régional d’ÉE s’applique au projet à l’étude. Les projets hydroélectriques, thermiques,

géothermiques et de lignes de transport d’énergie sont soumis à ce processus s’ils :

i) affectent ou bénéficient à au moins deux pays; ii) risquent d’avoir des impacts

transfrontaliers ou; iii) peuvent avoir un impact sur un site du patrimoine mondial. Si le

processus régional s’applique, il n’est pas nécessaire de le dupliquer en mettant en œuvre le

processus d’ÉE national. Le tri préliminaire consiste également à déterminer la catégorie du

projet et ainsi, les études environnementales et sociales requises en vertu de ce CÉE.

À la phase de préparation du projet, l’objectif du cadrage environnemental est de préparer

les termes de référence (TDR) des études environnementales et sociales identifiées durant

le tri environnemental, conformément à la législation nationale et aux politiques applicables

nationales et du bailleur de fonds, telles que les politiques de sauvegarde de la Banque

mondiale. L’agence environnementale nationale du pays d’origine du projet approuve les

TDR préparés par le promoteur.

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24

L’étape de l’évaluation des impacts comprend trois principales activités: 1) préparation des

études; 2) consultations publiques; 3) analyse de la conformité. Les projets de Catégorie A

demandent une étude d’impact environnemental (EIE) complète, un plan de gestion

environnementale et sociale (PGES) et une analyse du cycle de vie (ACV). Les projets de

Catégorie B peuvent demander une EIE limitée ou seulement un PGES. La plupart des

enjeux sociaux déclenchés par les projets de production électrique seront intégrés dans les

TDR de l’EIE. De plus, il est probable qu’un plan de réinstallation (PR) soit requis pour la

plupart des projets assujettis au processus régional. Dans certains cas, les enjeux liés aux

populations autochtones peuvent également demander des études spéciales.

À la phase d’analyse et d’approbation du projet, le processus d’ÉE comprend l’analyse des

études (étape 5) et la prise de décision (étape 6). L’analyse des études comporte:

1) l’analyse interne des études et l’approbation nationale d’un projet Mécanisme de

Développement Propre (MDP); 2) l’analyse externe par la diffusion des études et la

consultation publique; 3) l’achèvement des études par le promoteur du projet. Cette décision

peut soit autoriser le projet, avec ou sans conditions, ou soit refuser le projet, le tout suivi de

la non objection du bailleur de fonds et l’attribution du permis environnemental. Il est aussi

important de s’assurer que les recommandations des études environnementales et sociales

soient intégrées dans les documents d’appel d’offre et contractuels.

À la phase de mise en œuvre du PGES, l’étape 7 du processus d’ÉE consiste à s’assurer

durant la durée du projet de production électrique que les mesures identifiées pour prévoir,

atténuer, ou compenser les impacts négatifs environnementaux et sociaux sont bel et bien

mises en œuvre. Enfin, en phase d’évaluation, la dernière étape du processus d’évaluation

environnementale comprend: 1) l’audit environnemental et social; 2) L’analyse de l’audit.

L’audit environnemental est une analyse objective qui consiste à déterminer si les activités

du projet sont en conformité ou pas avec les normes.

Afin de faciliter l’identification et l’atténuation des impacts environnementaux et sociaux des

projets régionaux de production électrique, des lignes directrices générales d’évaluation

environnementale et sociale ont été développées dans le cadre de ce CÉE.

En ce qui concerne les projets hydroélectriques, la construction et l’opération de barrages et

réservoirs comprennent plusieurs activités qui peuvent causer des impacts potentiels

environnementaux et sociaux importants. Les principaux concernent les modifications au

régime hydrologique, la pêche, la faune, les travailleurs non-résidents, l’agriculture et la



25

réinstallation involontaire. Ces projets peuvent entraîner d’importantes acquisitions de terres

et réinstallations involontaires de personnes. C’est pourquoi la conception de ces projets doit

être basée sur d’importantes études d’alternatives.

Par ailleurs, les impacts environnementaux de l’opération d’une centrale d’énergie thermique

sont liés à la qualité de l’air, de l’eau et du sol, ainsi qu’à la gestion des déchets solides. Les

impacts sur la végétation, la faune, les populations locales et la santé des travailleurs

doivent aussi être considérés. D’autre part, l’énergie géothermique offre du point de vue

environnemental un certain nombre d’avantages par rapport aux combustibles fossiles

utilisés dans les centrales thermiques. En effet, l’énergie géothermique est propre et

sécuritaire pour l’environnement. De plus, l’énergie géothermique est compétitive du point

de vue économique et permet de réduire la dépendance aux combustibles fossiles coûteux.

Les lignes de transmission et de distribution d’électricité peuvent permettre à des activités

humaines telles que la colonisation, l’agriculture et la chasse d’accéder à des territoires jadis

isolés. Le déboisement de l’emprise peut résulter dans la perte et la fragmentation d’habitats

et de végétation le long de la ligne. Ces effets peuvent être significatifs si des zones

naturelles telles des milieux humides et des forêts sont touchées, ou si les terres

nouvellement accessibles sont habitées par des peuples autochtones.

Afin de mieux orienter la préparation des études environnementales de projets régionaux de

production électrique, il sera important que des lignes directrices détaillées d’ÉIE soient

prochainement développées afin d’harmoniser les contenus des études futures.

Analyse du cycle de vie

Ce CÉE intègre l’analyse du cycle de vie (ACV) dans l’évaluation environnementale des

projets régionaux de production électrique. Cette approche est très innovatrice mais aussi

très intéressante considérant que, sur une échelle spatiale, elle englobe le projet du

« berceau à la tombe », ce qui rend l’ACV complémentaire à l’évaluation des impacts

environnementaux (ÉIE) du projet. L’ACV comprend 4 étapes: 1) objectif et champ de

l’étude, 2) inventaire du cycle de vie (intrants et extrants), 3) exigences de l’évaluation des

impacts, et 4) interprétation de l’évaluation des impacts. La figure 3 montre la relation entre

l’ACV et le processus d’ÉE des projets régionaux de production électrique.




26

Figure 3 Analyse du cycle de vie dans le processus d’ÉE

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27

Mécanisme de développement propre

Le Mécanisme de Développement Propre (MDP), développé sous l’égide du Protocole de

Kyoto, est d’un grand intérêt pour les pays en voie de développement car il permet d’y

canaliser les investissements étrangers pour promouvoir le développement durable et la

réduction des gaz à effet de serre tout en générant des crédits réduction des émissions de

gaz à effet de serre (GES). Pour être éligible aux fonds du MDP, un projet doit mener à des

réductions réelles et mesurables de GES et contribuer au développement durable du pays

hôte. En outre, plus d’un pays peut accueillir un projet admissible. Dans la plupart des cas,

la vente de crédits d’émissions de carbone dans le cadre du MDP permettra de financer une

partie du projet, qui devra être généralement complétée par un financement conventionnel.

La figure 4 présente une vue d’ensemble de l’intégration du MDP dans le processus d’ÉE

des projets régionaux d’électricité. Durant tout le processus, le promoteur du projet aura à

préparer un document de conception du projet (DCP) qui sera par la suite évalué par une

Autorité Nationale Désignée et le Conseil Exécutif (CE) du MDP. Deux Entités

Opérationnelles Désignées auront aussi à donner un avis au Conseil Exécutif sur le contenu

du DCP et à assurer le suivi des réductions des émissions de GES avant que soient

accordés les crédits d’émissions de carbone.

Un des éléments cruciaux du DCP est de définir le scénario de base, qui est la mesure des

émissions en l’absence du projet proposé et qui est utilisé pour estimer les réductions

d’émissions grâce au projet. Le tableau 3 identifie les scénarios de base potentiels dans les

pays du NBI et par conséquent, les projets éligibles sur la base des plans stratégiques

énergétiques.

Mise en vigueur du cadre d’évaluation environnementale

La figure 5 présente le processus de mise en vigueur du CÉE pour les projets régionaux de

production d’électricité. Le Protocole proposé devra être ratifié par chaque pays du NBI, par

une réglementation entérinée par les Ministres chargé de l’Environnement.




28

Figure 4 Mécanisme de développement propre dans le processus d’évaluation environnementale

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Tableau 3 Scénarios de base potentiels et projets éligibles basés sur les plans stratégiques énergétiques

Pays Scénarios de base Projets potentiels de production électrique

Burundi Hydroélectricité Énergies renouvelables (éolien, solaire, biomasse…)

République Démocratique du Congo

Méthane Énergies renouvelables (éolien, solaire, biomasse…) Hydroélectrique Géothermique

Kenya Charbon

Énergies renouvelables (éolien, solaire, biomasse…) Hydroélectrique Géothermique Gaz naturel

Rwanda Méthane Énergies renouvelables (éolien, solaire, biomasse…) Hydroélectrique Géothermique

Tanzanie Gaz naturel Énergies renouvelables (éolien, solaire, biomasse…) Hydroélectrique Géothermique

Ouganda Hydroélectricité Énergies renouvelables (éolien, solaire, biomasse…)

Égypte Gaz naturel Énergies renouvelables (éolien, solaire, biomasse…) Hydroélectrique Géothermique

Éthiopie Charbon


Soudan Fuel


Afin d’assurer la mise en œuvre du CÉE, il est essentiel que le personnel concerné des

organisations institutionnelles impliquées dans le processus soit formé et familiarisé avec les

composantes du CÉE. Celui-ci propose d’ailleurs un programme préliminaire de

renforcement des capacités qui devra être validé par une analyse institutionnelle des

agences environnementales des pays du NBI.

Le budget préliminaire requis pour rendre opérationnel ce CÉE pour les projets régionaux de

production électrique est estimé à 1,62 million $US durant les dix années suivant son

acceptation par les autorités du NBI (tableau 4). Ce budget est basé sur l’hypothèse que 30

projets régionaux seront évalués dans les dix prochaines années par les pays du NBI.

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MODULE 2Chapters 1 to 5



1-1

1 INTRODUCTION

1.1 Background

The Nile River, the longest river of the world, flows on more than 6,800 km from its source at

the head of the Kagera Basin in Rwanda and Burundi to its delta in Egypt on the

Mediterranean Sea. The river is shared by 10 countries: Burundi, Democratic Republic of

Congo, Egypt, Ethiopia, Eritrea, Kenya, Rwanda, Sudan, Tanzania, and Uganda. Five of

these are among the poorest in the world. The basin covers 3.1 million km2, representing

10% of the land of Africa.

The Nile River has played a key role in human settlement and the development of diversified

cultures and livelihoods for thousand of years. It encompasses famous environmental

assets, such as Lake Victoria, the second largest freshwater body in the world, and the vast

wetlands of the Sudd in Sudan. The population living in the basin is estimated at about

160 million people, and more than 300 million people live in the 10 countries that share the

Nile waters. This number is expected to double in the next 25 years. All of these people rely

to a greater or lesser extent on the waters of the Nile for their basic needs and economic

growth.

Recognizing that cooperative development holds the greatest prospects for bringing benefits

to the entire region, and aware of the challenges, the Nile riparian countries (Burundi,

Democratic Republic of Congo, Egypt, Ethiopia, Kenya, Rwanda, Sudan, Tanzania and

Uganda) established in February 1999 the Nile Basin Initiative (NBI) to address their

common concerns and interests, particularly poverty alleviation. The NBI provides an

institutional mechanism, a shared vision, and a set of agreed policy guidelines to provide a

basinwide framework for cooperative action.

The Vision of the NBI is to achieve sustainable socio-economic development through the

equitable utilization of, and benefit from, the Nile basin water resources. The policy

guidelines define the following as the primary objectives of the NBI:

• To develop the Nile basin water resources in a sustainable and equitable way to ensure prosperity, security, and peace for all its peoples;

• To ensure efficient water management and the optimal use of the resources;

• To ensure cooperation and joint action between the riparian countries, seeking win-win gains;




1-2

• To target poverty eradication and promote economic integration; and

• To ensure that the program results in a move from planning to action.

To translate this Vision into action, the NBI includes a vast program with two main

components:

• The basin-wide Shared Vision Program, to lay the groundwork for cooperative action through a regional program to build confidence and capacity throughout the basin.

• The Subsidiary Action Programs, to pursue cooperative development opportunities to realize physical investments and tangible results through sub-basin activities in the Eastern Nile and the Nile Equatorial Lakes regions.

The Regional Power Trade Project (RPTP) is one of the components of the Shared Vision

Program. The RPT is a project to be implemented basin-wide to help establish a foundation

for transboundary regional cooperation and to create an enabling environment suitable for

investments and action on ground within an agreed basin-wide framework. The RPT aims to

establish the institutional means to coordinate the development of regional power trade and

markets among the NBI countries.

1.2 Objective, purpose and scope of the EA framework for regional power projects

The objective of this environmental assessment (EA) framework is to ensure that the

development of regional power trade and markets among the NBI countries be implemented

according to sustainable development principles, including the integration of environmental

and social considerations through sound EA best practices.

The purpose of this EA framework is to guide the environmental agencies of the NBI

countries, project proponents and EIA practitioners to implement the proposed harmonised

EA process for all regional power projects defined as such in this document. It is hoped that

this in turn will facilitate greater consideration and integration of environmental concerns in

regional power projects.

Finally, the scope of this EA framework focuses on hydropower, thermal and geothermal and

transmission lines projects qualifying to the proposed harmonised regional EA process. As

agreed upon between the environmental agencies of the NBI countries, such types of

projects are subjected to the proposed EA process if the project affects or provides benefits

to at least two NBI countries, if the project is likely to cause significant adverse



1-3

transboundary impacts or if the project is likely to cause significant adverse impacts on an

international heritage site.

1.3 Contents of the EA framework

This EA framework comprises 11 chapters and various appendices:

• Following this introduction, Chapter 2 presents background information on the Nile River basin, Nile Basin Initiative (NBI) countries and NBI programs;

• Chapter 3 highlights the main features of the power sector in the NBI countries;

• Chapter 4 describes the environmental and social framework and procedures in the NBI countries;

• Chapter 5 summarises the review of how the environmental and social issues related to power projects are considered by the main international funding agencies;

• Chapter 6 discusses the inter-linkages between environmental sustainability, poverty reduction strategies and socio-economic development activities within the context of regional power investment projects;

• Chapter 7 describes in details the whole EA process for regional power projects;

• Chapter 8 presents issues to consider in the preparation of environmental and social impact assessment for regional power projects;

• Chapter 9 describes the proposed approach to integrate life cycle assessment in the EA process;

• Chapter 10 explains in details how the NBI countries could access to the Clean Development Mechanism through regional power projects;

• Chapter 11 proposes a mechanism to enforce the EA framework in the NBI countries as well as institutional capacity building to ensure its implementation;

• Finally, the appendices comprise the lists of documents and stakeholders consulted to conduct this study, and various supporting documents to implement this EA framework.

This final draft report takes into account the comments received from the environmental

agencies of the NBI countries during the mid-term workshop held in Dar es Salaam on

October 1st and 2nd, 2007, as well as the comments of these agencies and PTC members

during the draft report workshop meeting held on December 14th and 15th 2007 at Entebbe in

Uganda.



2-1

2 NILE RIVER BASIN AND NILE BASIN INIATIVE

This section presents background information on the Nile River basin, Nile Basin Initiative

(NBI) countries and NBI programs.

2.1 General description of the Nile basin

The Nile Basin covers an area of nearly 3.1 million km2 representing about 10% of the

African continent (Figure 2.1). Table 2.1 shows the distribution of the basin within the 10

riparians countries. The two downstream countries of the basin, Sudan and Egypt,

encompass 63% and 10% of the Nile river basin respectively. At the opposite, upstream

countries such as Burundi, DRC and Rwanda occupy each less than 1% of the basin.

Table 2.1 Area of the Nile River basin by country

CountryTotal area

(km²)Basin area in country (km²)

% of the country

% of the basin

Burundi 27 834 14 318 51.4 0.5DRC 2 345 000 28 180 1.2 0.9Egypt 995 450 304 246 30.6 9.8Eritrea 121 320 24 699 20.4 0.8Ethiopia 1 127 127 349 625 31.0 11.3Kenya 582 650 44 599 7.7 1.4Rwanda 26 338 20 917 79.4 0.7Sudan 2 505 810 1 947 683 77.7 63.0Tanzania 945 087 115 219 12.2 3.7Uganda 250 066 241 359 96.5 7.8Total 8 926 682 3 090 844 34.6 100.00

Source: Tecsult, 2007

The Nile River is the longest river in the world (6,825 km), but it is relatively not a big river in

terms of volume of water. The contrast between the size of the basin and the comparatively

small volume of runoff is an important feature and among the main causes of the rising water

scarcity concerns.

The White Nile

The Ruvyironza, considered as the ultimate source of the Nile, is one of the upper branches

of the Kagera River. The Kagera follows northward the boundary of Rwanda, turns where

the borders of Rwanda, Uganda and Tanzania meet, and drains into Lake Victoria. On

leaving Lake Victoria at the site of the now-submerged Owen Falls, the Nile rushes for

483 km over rapids and cataracts, at first northwest and then west, until it enters Lake Albert.




2-2

The section between the two lakes is called the Victoria Nile. The river leaves the northern

end of Lake Albert as the Albert Nile, flows through northern Uganda, and at the Sudan

border becomes the Bahr al Jabal. At its junction with the Bahr al Ghazal, the river becomes

the Bahr al Abyad, or the White Nile. At Khartoum the White Nile is joined by the Blue Nile,

or Bahr al Azraq. These are so named because of the colour of the water.

The Blue Nile

The Blue Nile is 1529 km long. Its

source is Lake Tana in the Ethiopian

highlands. The Blue Nile rises at a

spring site upstream of Lake Tana in

Ethiopia, at 2,150 m above sea level.

The river flows west then north until it

eventually meets the White Nile at

Khartoum. A length of 800 km is

navigable during high water times.

Some 80% of Sudan's electricity is

provided by hydroelectric schemes at Roseires and Sennar, and these dams provide

irrigation water for over 10,000 km2 of the Gezira Plain.

The Main Nile

From Khartoum, the Nile flows northeast on 322 km below Khartoum where it is joined by

Atbarah River. The black sediment brought down by the Atbarah and Blue Nile rivers settle

in the Nile delta making it very fertile. This process historically occurred during the annual

flooding of the Nile in the summer months. However, the opening of the Aswan High Dam in

the early 1970s allowed for control of the flooding and reduced sediment deposits in the river

as these now settle in Lake Nasser. During its course from the confluence of the Atbarah

through the Nubian Desert, the river makes two deep bends. From Khartoum to Aswan there

are six cataracts. The Nile is navigable to the second cataract on a distance of 1,545 km.

The delta of the Nile is 190 km wide. The water level behind the Aswan Dam fell from 170 m

in 1979 to 150 m (492 ft) in 1988, threatening Egypt's hydroelectric power generation.

Nile River in Ethiopia

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NILE RIVER BASIN

Sources :

FAO, Aquastat, 2005

WGS 84

February 2008

0 100 200 300 400 km

Figure 2.1International boundary



2-5

The Nile plays a vital role in the socio-economic development of the Nile riparian states.

Agriculture is the dominant economic sector in most of these countries, and reliable access

to water remains an issue to increasing agricultural productivity, providing employment, and

to raising the standards of living of the people residing in the basin. The Nile also represents

a vast resource for hydropower generation.

The Nile region is characterised by environmental degradation, conflicts, drought, and

poverty. However, the Nile waters represent a tremendous potential for social and economic

development. Collaborative and sustainable development of the shared water resources can

attract investment and contribute to alleviate poverty.

2.2 NBI countries

The countries forming the Nile Basin Initiative can be subdivided in two groups, i.e. Eastern

Nile countries including Egypt, Sudan and Ethiopia, and Nile Equatorial Lakes countries,

namely Burundi, Democratic Republic of Congo (DRC), Kenya, Rwanda, Tanzania and

Uganda.

Ashwan dam in Egypt




2-6

2.2.1 Eastern Nile countries

Egypt, located downstream of Nile river, encompasses 10% of the river basin. Except along

the Mediterranean coast and the Sinai, there is nearly no rainfall over most of the country.

Thus, the Nile constitutes the main source of renewable freshwater of Egypt. Most of the

population lives within the basin, within a narrow strip along the Nile and in the delta area

where the density of the population is important. Environmental issues in Egypt include the

preservation of aquatic habitats and biodiversity for fisheries production, protection of water

quality in order to reduce impacts on human health, as well as soil erosion, desertification,

aquatic weeds, and sea water intrusion in the Nile delta.

Ethiopia includes 11% of the Nile basin. Located in the eastern portion of the Nile basin, the

Ethiopian highlands give rise to some of the major tributaries of the Nile, i.e. the Abbay

(Blue) Nile, the Tekeze (Atbara) River, and the Baro-Akobo (Sobat) River, contributing to

more than 75% of the average annual flow of the Main Nile. Rainfall in the Nile Basin portion

of the country is relatively high, but seasonal and confined to a four month period. During the

rains, the rivers are flashy and transport high loads of sediments. In addition, deforestation

and soil erosion have become very significant environmental problems.

Sudan, the largest country of Africa, lies at the center of the Nile basin, encompassing 63%

of the total basin area. About 85% of the population of Sudan live within the Nile basin, but

the density is relatively low. The major tributaries of the Nile meet within Sudan. As

mentioned above, the White and Blue Nile join at Khartoum to form the Main Nile. The

Women in Ethiopia



2-7

northern part of the country receives very low rainfall and is therefore desert or semi-desert.

The vast wetland areas in the south receive relatively high rainfall, but evaporation is

important. Environmental issues in Sudan include water management for irrigation schemes,

sedimentation and floating trash problems, as well as soil degradation and desertification.

2.2.2 Nile Equatorial Lakes countries

Burundi is a small country located in the southwest of the region. Hosting the most southern

source of the Nile, Burundi encompasses 0.5% of its basin. About half (51%) of Burundi's

land area drains into the Nile basin, whereas the other half drains into Congo River. The

country is mountainous with high rainfall. However, the abundant water resources are used

by a high density of population. Environmental issues include progressive decline of the

water quality due to demographic pressure, deforestation and soil erosion, and high

sediment loads which affect hydropower generation.

DRC is a very large country in the southwest of the Nile basin, but includes only 0.9% of it.

Rainfall over most of the country is important and the abundant water resources drain into

Congo River basin. Only 1.2% of DRC’s land area drains into the Nile, but the population

density in this area is approximately five times higher than in the rest of the country. The Nile

waters from DRC flow into lakes Edward and Albert, which lie on the border between DRC

and Uganda. Environmental issues include high suspended solids loads in rivers and several

degraded wetlands. Water hyacinth problems are important in Kasai and Congo rivers, but

are not yet very significant in the Nile basin part of the country.

Kenya is located on the shore of Lake Victoria in the southeast part of the Nile basin, and

includes 1.4% of it. The portion of the country within the Nile basin is relatively small,

constituting about 10% of the country. However, the population density in this area is high

and represents about 40% of the country's population. Environmental issues in Kenya

include farming activities extended to steep hill slopes resulting in soil erosion and

sedimentation problems. Other environmental issues include the maintenance of water

quality, conservation of wetlands, and control of aquatic weeds in Lake Victoria.




2-8

Rwanda is a small country located in the southwest of the Nile basin. It encompasses 0.7%

of the basin and about 80% of the country is located within the Nile Basin, while the

remaining portion drains into the Congo River basin. The country is mountainous with

relatively high rainfall. Rwanda is the country with the highest population density in the Nile

basin. The Kagera River which drains from Rwanda, as well as from Burundi, Tanzania and

Uganda, is the largest tributary to Lake Victoria. Environmental problems in Rwanda include

localized high sediment loads and toxic materials from mining, pollution from untreated

domestic sources, detrimental effect of aquatic weeds, as well as soil erosion and

desertification in the semi-arid areas.

Tanzania is one the largest country of the region located on the shore of Lake Victoria at the

southern end of the basin and includes 3.7% of it. In general, the country is relatively rich in

water resources, but water availability varies throughout the country. The Nile basin portion,

which represents 12% of Tanzania, is relatively humid, with above average population

density. Environmental problems in Tanzania include among others water pollution

aggravated by increasing population and economic activities, extensive clearing of forests

and bush fires resulting in soil erosion and high turbidity in surface waters.

Uganda is located in the

southern part of Nile

basin and encompasses

7.6% of it. Most of the

country (96%) lies within

the Nile basin. In

Uganda, Lake Victoria

discharges into the

Victoria Nile. Most of the

country has relatively

high rainfall. Surface water resources, therefore are relatively abundant, but the variability is

high too. Uganda serves as an important bridge country as it is downstream of DRC,

Rwanda, Burundi, Tanzania and Kenya and upstream of Sudan and Egypt. Important

environmental issues include land use changes which are having an increasing impact on

the quantity and quality of water and degradation of wetlands, the deterioration in water

quality and ecology of Lake Victoria and the Victoria Nile, proliferation of water hyacinth, and

pollution by toxic metals and other hazardous chemicals from mines. The increasing

Katonga river in Uganda



2-9

encroachment in forested areas resulting in the loss of forest biomass and the drainage and

conversion of wetlands and forest biomass are a large concern in Uganda.

2.3 NBI strategic action program

The Nile Basin Initiative (NBI) is a partnership of the riparian states of the Nile. The NBI

seeks to develop the river in a cooperative manner, share substantial socioeconomic

benefits, and promote regional peace and security. The NBI begun with a participatory

process of dialogue among the riparians that resulted in the agreement on a shared vision:

to “achieve substantial socioeconomic development through the equitable utilization of, and

benefit from, the common Nile basin water resources,” and a Strategic Action Program to

translate this vision into concrete activities and projects1.

The NBI’s Strategic Action Program comprises two complementary programs: the basin-

wide Shared Vision Program (SVP) to build confidence and capacity across the basin, and

Subsidiary Action Programs (SAP) to initiate concrete investments and action on the ground

at sub-basin levels. The SVP, which focuses on building regional institutions, capacity and

trust, lays the foundation for unlocking the development potential of the Nile, which can be

realized through the SAP. These investment-oriented programs are currently under

preparation in the Eastern Nile and the Nile Equatorial Lakes Regions (ENSAP and

NELSAP).

The SVP includes seven thematic projects related to environment, power trade, agriculture,

water resources planning and management, applied training, communications and

stakeholder involvement, and macro-economics. An eighth project, the SVP Coordination

Project, aims at building capacity at the NBI Secretariat for program execution and

coordination. The SVP is being executed by the Secretariat of the Nile Basin (Nile-SEC) on

behalf of the Nile Council of Ministers (Nile-COM). In executing the program, the NBI is

supported by a Technical Advisory Committee (Nile-TAC) drawn from participating member

countries.

The Regional Power Trade Project (RPTP) is one of eight projects being implemented under

the SVP. The project aims to facilitate the development of regional power markets among

1. Nile Council of Ministers, Policy Guidelines for the Nile River Basin Strategic Action Program, February

1999.




2-10

the ten Nile Basin countries and build analytical capacity and provide technical infrastructure

to manage the Nile basin resources in keeping with the Vision.

Cheap and reliable supply of electricity is a critical input for economic growth, employment

generation and poverty alleviation. As such, the long term objective of the RPTP is to

contribute to poverty reduction in the Region by assisting the NBI countries in developing the

tools for improving access to reliable and low cost power in the Nile basin in an

environmentally sustainable manner. An important element in achieving this goal is to create

an effective institutional mechanism to promote and develop power trade opportunities

among the countries participating in the Nile Basin Initiative. Facilitating the development of

a regional electricity market can play a key role in furthering co-operation among the Nile

basin states and in ensuring that the resources of the Nile Basin are developed and

managed in an integrated and environmentally sustainable manner.



3-1

3 POWER SECTOR IN THE NBI COUNTRIES

This section presents the main features of the power sector in the NBI countries, which are

subdivided into the Eastern Nile and Nile Equatorial Lakes (NEL) countries. The current and

potential situations in the Eastern Nile countries are discussed on the basis of the Eastern

Nile Power Trade Program Study (EDF, March 2007), whereas the situation of the NEL

countries is based on the findings of the Strategic/Sectoral, Social and Environmental

Assessment of Power Development Options in the NEL Region (SNC Lavalin International,

February 2007).

3.1 Eastern Nile

3.1.1 Egypt

Egypt has a population of about 70 million inhabitants (2005). Its electric utility comprises

nine regional electricity distribution companies, five regional electricity generation companies

and one electricity transmission companies. All these companies are blended in the Egyptian

Electricity Holding Company (EEHC), under the Ministry of Electricity & Energy.

According to the 2005-2006 annual report of the Egyptian Electricity Holding Co (EEHC),

Egypt's installed generating capacity stood at 20.45 gigawatts (GW), with plans to add

8.38 GW of additional generating capacity by mid-2012. Around 85% of Egypt's electric

generating capacity is powered by natural gas, with the remaining 14% hydroelectric, mostly

from the Aswan High Dam. Wind-farm account for 1%. All oil-fired plants have been

converted to run on natural gas as their primary fuel, and thermal power plants now account

for roughly 65% of Egypt's total gas consumption.

Hydro plants in Egypt are distributed along the Nile (Figure 3.1), with High Dam upstream

using Nasser lake reservoir water, followed by Aswan I and Aswan II, both with a small

intermediate reservoir. Then, downstream, two run of the river power stations complete the

whole hydro system: Esna and Naga Hammadi (with a small power station that will be

replaced by a new one committed to 2007/2008).




3-2

Figure 3.1 Hydro scheme for the existing hydropower plants in Egypt

�

�

�

�

� New Naga Hammadi HPP (64 MW )

Q (2072 m3/s)

High Dam

High Dam HPP (1750 MW )

Aswan Dam (intermediate lake)

Aswan I HPP (322 MW )

Aswan II HPP (270 MW )

Irrigation (103 m3/s)

Esna Dam

Esna HPP (88 MW )

Irrigation (126 m3/s)

New Naga Hammadi

Source: Eastern Nile Power Trade Program Study (EDF, March 2007)

In Egypt, peak demand increased from 5,400 MW (1985/1986) to 17,300 MW (2005/2006).

In the same period, energy generated increased from 32 TWh to 108 TWh, with a growth

rate of 7% in the last ten years (EDF, 2007).

Egypt is interconnected with Libya and Jordan, for emergency situations and for power trade

between Egypt and Jordan. Exports and imports measured from 2003 to 2005 represented

less than 1% of total Egyptian electrical generation, but 20% of Jordanian generation. An

export balance of 20 GWh to Lybia and of 680 GWh to Jordan were measured in 2004/2005.

The existing transmission system is equipped with a double circuit 500 kV backbone along

the Nile river, from Aswan Dam (2,100 MW) to Cairo, and a single circuit (500 KV) from

Cairo to the interconnection with Jordan. A 132 kV and 220 kV circuit follows the 500 kV



3-3

backbone along the Nile river. The delta zone is supplied with a meshed 220 kV network,

and extends towards west to Libya with a double circuit interconnection.

3.1.2 Sudan

Sudan has a population of 35 millions inhabitants (2005). Its electrification ratio is one of the

lowest in the world, estimated at about 19% of households with electricity supply (EDS,

2007).

The power installed capacity in Sudan is about 840 MW, the majority of electricity being

generated by conventional thermal sources (59%), with the remainder coming from

hydroelectricity (41%) (EDS, 2007). The country's main hydroelectricity generating facility is

the 280-MW Roseires dam located on the Blue Nile river basin, approximately 550 km

southeast of Khartoum.

According to NEC master plan, 55% of the power plants identified as committed contributors

to the Sudan generation expansion plan are thermal (mainly steam plant) whereas 45% are

hydropower plants.

The National Electricity Corporation (NEC) is responsible for electricity generation,

transmission and distribution in Sudan. NEC transmits electricity through two interconnected

electrical grids, the Blue Nile Grid and the Western grid, which cover only a small portion of

the country. Regions not covered by the grid often rely on small diesel-fired generators for

power (figure 3.2).




3-4

Figure 3.2 Map of Sudanese Grid




3-5

3.1.3 Ethiopia

Ethiopia has a population of about 75 million inhabitants (2005). Its energy consumption per

capita of 28 kWh is also one of the lowest in the world. Access to electricity is estimated at

17% of the households.

According to the Eastern Nile

Power Trade Program Study. the

Interconnected System of Ethiopia

has a total installed capacity of

766.9 MW (end of 2006) including

96.3 MW of diesel plants at Dire

Dawa, Awash, and Kaliti, and a

geothermal plant at Aluto-Langano

(7.3 MW). The vast majority of

Ethiopia's existing capacity (87%) is hydroelectric. The EEPCO, the state-owned

organisation responsible for electricity generation, plans to construct several new generating

facilities to provide electricity to Ethiopia. Currently, less than half of Ethiopia's towns have

access to electricity, though EEPCO electrified more than eighty towns between 2001 and

2003. Since most of Ethiopia's electricity is generated from hydroelectric dams, the country's

power system is vulnerable to extended droughts. Ethiopia recently endured more than six

months of power cuts due to low water levels in dams around the country.

EEPCO is rapidly expanding its generating capacity. The 73-MW Tis Abay 2 facility, located

on the Blue Nile (Abay) was commissioned in 2001. The 192-MW Gilgel Gibe hydroelectric

facility began its operations in 2004. EEPCO has begun the construction of new

hydroelectric generating facilities at Tekeze (300 MW) and Gilgel Gibe II (420 MW) that are

expected to be in operation in 2008 (see figure 3.3).

In addition, Beles and Yayu coal plants are sought to be on line by 2009 and 2010

respectively.

The Gojeb power plant is Ethiopia's first Independent Power Project (IPP). This 150-MW

hydroelectric plant was built in western Ethiopia and started commercial operation in 2004.

Agreements on additional IPP projects were signed in June 2001. The largest facility will be

the 162-MW Genale hydroelectric facility located on the border between the Oromia Region

Power substation in Ethiopia




3-6

and the Southern Peoples Nationalities Regional State. The plants will be built under the

Build-Operate-Transfer (BOT) system. ENERCO will operate the facilities for 30 years, which

could be renewable for another 30 years.

3.1.4 Ethiopia-Sudan Transmission Interconnection Project

The Ethiopia-Sudan Transmission Interconnection Project is being implemented under the

Nile Basin Initiative under the supervision of the Eastern Nile Technical Regional Office

(ENTRO) representing the Eastern Nile countries of Ethiopia, Egypt and Sudan. The Project

forms part of the Program on Integrated Development of the Eastern Nile.

The Project involves the construction of a double circuit 230 kV transmission line from

Ethiopia to Sudan in order to utilise surplus hydropower from Ethiopia to replace oil-based

thermal generation in Sudan. The interconnection would also provide benefits of common

reserves in emergency cases (electricity could be transferred from Sudan to Ethiopia under

severe hydrological conditions in Ethiopia) and achieve considerable savings in timing of

power plants in the long run. Three alternative routes have been investigated and the

recommended route is approximately 446 km long, starting from Bahir Dar in Ethiopia and

connecting to the El Gedaref Substation in Sudan via the border towns of Metema and

Gallabat.



3-7

Figure 3.3 Existing and Committed Hydropower Plants in Ethiopia





3-8

3.2 Nile Equatorial Lakes

The East African Power Master Plan Study (BKS Acres, 2005) and the Strategic/Sectoral,

Social and Environmental Assessment of Power Development Options in the NEL Region

(SNC Lavallin, 2007) provide details on the existing situation of the power sector of the NEL

countries and on potential power projects.

3.2.1 Current Situation of the Power Sector

In 2007, installed electric generating capacity for the Great Lakes region totalled about

1,914 MW (SNC-Lavallin, 2007), the majority being hydropower. In the framework of the

East African Community (EAC), Kenya, Tanzania and Uganda are developing plans to share

power supplies, including the EAC Power Master Plan that will enable any EAC country to

connect with another nation's electricity supply. Burundi and Rwanda have recently joined

the EAC and will therefore participate in the interconnection plan. Among the nations of the

region, Uganda has the biggest hydropower potential (from the Nile River) and could play a

major part in any power-sharing project.

The electricity demand in Uganda is supplied by two main hydroelectric plants, i.e.

Nalubaale (180 MW) and Kiira (200 MW) generating stations, both located about 3 km

downstream from the mouth of the Victoria Nile. Other small hydro generating plants include

Maziba (1 MW) and Kikagati (1.25 MW but not in operation) located in the southwest,

Kilembe Mines (5 MW) and Kasese Cobalt (10 MW) plants, privately owned, located in the

west. There are three other micro hydro plants. The Bujagali expansion hydro project and

Karuma hydroelectric power station will add an additional 200 MW each to the national grid.

The main transmission voltage in Uganda is 132 kV with the sub-transmission system

operating at 66 kV. Generation at Nalubaale and Kiira is transmitted to the east via a

117 km double circuit 132 kV transmission line to the Tororo substation at the border with

Kenya. The double circuit line continues to Lessos substation in Kenya. From the Tororo

substation a 132 kV transmission line extends 260 km to the northwest to supply the town of

Lira. To the west of Nalubaale and Kiira, a double circuit line and a single circuit line serve

the load centre of Kampala and the west of the country. A 132 kV line crosses the

Tanzanian border and supplies the Kagera region in Tanzania.

The interconnected system in Kenya has a total installed capacity of 1,232 MW made up of

707 MW of hydro, 398 MW of thermal, 127 MW of geothermal, and 0.35 MW of wind.



3-9

KenGen, the government owned utility, owns 83% of the generation while independent

power producers own the remaining 17% of the effective capacity (BKS Acres, 2005).

Generation capacity is expected to be enhanced when ongoing committed generation

projects with a combined capacity of 556MW are commissioned between 2007 and 2010

(KPLC Annual report 2006-2007).

There are seven cascaded hydro stations along the Tana River with a total installed capacity

of 565 MW and these stations range in size from 7.4 MW to 225 MW. The other major

station is the Turkwel hydro station completed in mid 1991 and with an installed capacity of

106 MW.

Kenya has two steam stations, the Olkaria renewable power station (45 MW) and the Kipevu

Thermal Station (45.5 MW). Nairobi is promoting additional geothermal power, and plans to

commission at least six geothermal power plants, with a combined capacity of 3,894 MW.

The government has also identified the northern Kenyan town of Marsabit as a potential site

for installation of a wind-powered electricity generation site that would add 4,400MW to the

national grid.

Kenya’s transmission system comprises 220 kV, 132 kV and 66 kV transmission lines. The

system load is concentrated in Nairobi and Mombasa. From Mombasa, a single circuit

132 kV transmission line runs northwest to Nairobi (440 km). From Nairobi a double circuit

132 kV line extends to the Ugandan border and then continues to Nalubaale hydropower

station in Uganda passing by Olkaria I and II and Lessos.

The Tanzanian system comprises six hydro plants at Mtera, Kidatu, Hale, Pangani Falls,

Nyumba ya Mungu and Kihansi. The total effective hydro capacity of the grid system is

555 MW. The installed capacity of thermal generating sets within the Tanzania grid has

increased to 302 MW after the inclusion of 100 MW from an independent power producer i.e.

Tegeta thermal power plant which started commercial operation in January 2002. The

largest thermal plant is located at Ubungo and is fired by natural gas from Songo Songo.

The transmission voltages in Tanzania are 220 kV, 132 kV and 66 kV, but most energy is

carried out on the 220 kV system. Dar es Salaam is the major load centre.

At this time there are no new hydro projects that have been committed. Due to drought,

Tanzania is experiencing some power shortages and there is an emergency power plan to




3-10

alleviate the shortage. This plan provides for addition of two 40 MW gas fired combustion

turbines located near or at Ubungo.

DRC has extensive potential hydroelectric capacity of approximately 100,000 MW. Due to

continuing political uncertainties and the resulting lack of investor interest, only a fraction of

this amount has been developed. In 2003, the DRC had a total installed generating capacity

of 2,568 MW. However, actual production is estimated at no more than 600-700 MW

because two-thirds of the turbines are not functioning. In May 2006, MagEnergy (Canada)

began overseeing the refurbishment and rehabilitation work on Inga Dam, which is operating

at 40%. The repairs should allow Inga to work at full capacity (1,774 MW) by 2010. DRC

exports hydroelectricity to its neighbour, Republic of Congo along a 220-kilovolt (KV)

connection. The interconnection supplies nearly one third of the electricity consumed in

Congo-Brazzaville. Power from Inga is also transmitted to the Zambian grid along a 500-KV

DC line from Inga to Kolwezi in southern DRC, and a 220-KV line from Kolwezi to Kitwe in

northern Zambia. South Africa also imports DRC's energy output through the Southern

African Power Pool (SAPP) grid.

In Burundi and Rwanda, most of the electricity produced is generated through

hydroelectricity. Hence, the highly variable climate in central and eastern Africa exposes the

power systems of the two countries to great fluctuation in hydropower generation. This has

resulted in power rationing of various degrees being introduced in recent years. Even in wet

years, there is insufficient reliable energy for supplying new customers and rural

electrification. Industrialization processes and, hence, their economic development are

severely constrained by the lack of power. The installed capacity in Burundi and Rwanda

totals 37 MW and 41 MW respectively (SNC Lavallin, 2007).

3.2.2 NELSAP Power Development Strategy

The Strategic/Sectoral, Social and Environmental Assessment (SSEA) of Power

Development Options in the Nile Equatorial Lakes Region (SNC Lavallin International, 2007)

provides a foundation for planning the development of the power sectors of the region as it

contains a proposed development strategy and a NELSAP indicative development plan to

the year 2020. It is based on a review of the current environmental and social context, the

existing legal and regulatory framework, an assessment of the power needs for the region,

an identification of the power development options available in the region and a comparison

of these options in terms of environmental, socio-economic and risk considerations. It also



3-11

takes into account the conclusions and recommendations of the East African Power Master

Plan Study (BKS Acres, 2005).

The following are specific recommendations for a NELSAP Indicative Power Development

Strategy based on a medium load growth scenario. Because of the long time required for the

construction of power development options, there is little that can be done to improve the

power supply situation other than to implement options already committed or under

construction and to install units that can be built quickly such as diesel and gas turbine units

as well as combined cycle plants, which use expensive fuels. Therefore, the following

options, as illustrated on Figure 3.4, are proposed to be implemented during the period 2009

to 2020:

• Gas turbines, combined cycle units and diesel plants (250 MW) in Tanzania;

• Geothermal plant (140 MW) in Kenya;

• Kivu gas engine #2 and # 3 (60 MW) in Rwanda and DRC;

• Rusumo Falls hydropower (62 MW) in Burundi, Rwanda and Tanzania;

• Bujagali 1 to 5 hydropower (250 MW) in Uganda;

• Kabu 16 hydropower (20 MW) in Burundi;

• Kakono hydropower (53 MW) in Tanzania;

• Ruzizi III hydropower (82 MW) between Rwanda and DRC;

• Gas turbines (60 MW) in Kenya;

• Ruhudji hydropower (358 MW) in Tanzania;

• Karuma hydropower (200 MW) in Uganda;

• Wind plants (50 MW) in Kenya;

• Coal-fired plants (200 MW) in Tanzania;

• Coal fired plants (450 MW) in Kenya.

The East African Community Master Plan has proposed a substantial investment in lines

within each of the EAC countries. In addition, the plan proposes two interconnection lines:

• 330 kV transmission line Arusha – Embakasi (Nairobi); and

• Double circuit 220 kV transmission line Tororo – Lessos.




3-12

The following interconnection lines were also proposed by the NELSAP SSEA:

• 110 kV line from Kigoma, Rwanda to Rwegura, Burundi;

• 132 kV line from Kabarondo, Rwanda passing near Ngara to Biharamuro in the Kagera Province of Tanzania;

• 132 kV line from near Ngara, Rwanda to Gitega, Burundi; and

• 110 kV line from Gitega, Burundi through Bururi to Kigoma, Tanzania.

The DRC has also proposed substantial investments in transmission lines, primarily to

interconnect with neighbouring countries and to evacuate power from new or rehabilitation

options being considered. These lines include:

• 70 kV from Ruzizi, DRC to Bujumbura, Burundi to be upgraded to 110 kV;

• 70 kV from Bukavu to Goma, both in the DRC to be upgraded to 110 kV;

• 110 kV line between Goma and Beni via Butembo;

• 110 kV line between Mukungwa, Rwanda and Goma, DRC, then on to the proposed hydro plant of Mugomba in Uganda;

• a line between Beni and Bunia to be connected to the exiting plant at Budana and the proposed plant at Semliki;

• lines from the Mpiana Mwanga and Kiyimbi plants to the Ruzizi- Bujumbura line;

• a submarine cable linking Kalemie, DRC to Kigoma, Tanzania.

The location of some of these lines was based on the assumption that the Rusumo Hydro

option would be built. As currently proposed, it includes transmission lines from the site to

Gitega, Burundi; Kabarondo, Rwanda; and Biharamuro, Tanzania.

The power options prevailing in the development strategy consist of hydropower and thermal

power plants as well as interconnection transmission lines. Other types of options such as

wind farms, geothermal plants and other renewable energy (solar) have a limited capacity,

are planned for local needs and do not involve trade with neighbouring countries (regional

power market).

!\

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SUDAN

DEM. REP.OF CONGO

ETHIOPIA

KENYA

UGANDA

TANZANIA

BURUNDI

RWANDA

BUJUMBURA

KAMPALA

KIGALI

NAIROBI

Mtera

Tsavo

Kyimbi

Tegeta

Kidatu

Ubungo

Kipevu

Karuma

Kibuye

Songwe

Mpanga

Bendera

Pangani

Turkwel

Rwegura

Kabu 16

Ruhudji

Mkumbara

Mukungwa

Ruzizi I

Bujagali

Menengai

Rumakali

Masigira

Bujumbura

Ruzizi II

Mchuchuma

Owen Falls

Ruzizi III

Sondu Miriu

Kakono High

Rusumo Falls

Piana Musanga

Lower Kihansi

Upper Kihansi

Geothermal Field

Nyumba Ya (Mungu)

Complexe tana (7)

NYUNZU KALEMI

Baraka

GOMA

EMBUNYERI

NAKURUKISUMU

MOMBASA

KERICHO

NANYUKI

ELDORET

MACHAKOS

TANGA

MOSHI

IRINGA

DODOMA

TABORA

ARUSHA

MWANZA

Musoma

Mufindi

SINGIDA

MOROGORO

SHINYANGA

DAR ES SALAAM

Lira

Lusu

Kivu

Kydia

Kiwoko

Lessos

Masaka

Bukoba

Gitega

Njombe

Masindi

Mbarara

Muyinga

Makamba

Makambako

Kabulasoke

Biharamuro

Bulyanhulu

NakasongolaKamuli

GitaramaKabarondo

IND

IAN

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EAN

!\ National Capital

Major City, Town

International boundary

River

Lake

Nile Basin

Nile Basin Country

Existing Stations

!(H Hydropower Station

!(G Gas Turbine

!(F Fuel Power Plant

Proposed Stations

!(HHydropower Station (including transmission)

!(G Gas Turbine

!(TG Geothermal Power Plant

!(C Coal Power Plant

!(M Methane Power Plant

!(W Wind Farm

Shown Main Existing Transmission Line

Proposed New Transmission Line

Proposed Upgrating of Voltage of Existing Transmission Line

LakeVictoria

LakeAlbert

LakeEdward

LakeKivu

LakeTanganyika

LakeKyoga

LakeTurkana

LakeNyasa

LakeRukwa


REGIONAL DEVELOPMENT OF POWER AND TRANSMISSION

REQUIREMENTS TO 2015IN NEL COUNTRIES

Source :

SNC-Lavalin, 2007

WGS 84

February 2008

0 50 100 150 200 km

Figure 3.4



4-1

4 ENVIRONMENTAL AND SOCIAL FRAMEWORK AND PROCEDURES IN THE NILE BASIN COUNTRIES

The environmental and social policies, legislative frameworks and procedures include all

available information related to environmental assessment (EA) of power projects in the NBI

countries. Table 4.1 presents the environmental and social issues related to EA of regional

power investment projects for which information has been collected in the NBI countries.

This section summarises the review of how these environmental and social issues are

considered by each NBI country.

Appendix 1 and 2 present respectively the list of documents examined and the stakeholders

consulted in the different NBI countries to carry out the review of the EA frameworks and

procedures in the Nile basin countries.

The detailed analytical grids on these issues have been presented in the document that was

prepared specifically for the mid-term workshop that was held in the framework of this study,

and validated by the representatives of the Nile basin countries environmental agencies

attending this workshop held in October 2007 at Dar es Salaam, Tanzania.

Table 4.1 EA-related issues of regional power projects

Environmental subjects

1 Environmental policy

2 Environmental and social assessments procedures and regulation

3 Water resources management policy

4 Climate change policies and regulation

5 Forest conservation / Biodiversity policy and regulation

6 International environmental treaties and conventions

Social subjects

7 Land issues and resettlement policy

8 Poverty reduction strategy and socio-economic development

9 Public health (especially water-borne diseases and HIV/AIDS) policy

10 Vulnerable groups including women policy

11 Historical and cultural sites policy and regulation

12 Indigenous communities policy




4-2

4.1 Environmental policy

Almost all NBI countries have adopted environmental policies and laws in the last ten years.

These environmental laws require to carry out the EIA of projects likely to cause

environmental impacts. Only the DRC does not have yet a framework law on the

environment or a set of environmental policies. However, the Environment Framework Law

and the Water Act of DRC are currently in preparation.

The protection and improvement of the environment are integral part of the environmental

strategies in the NBI countries. The policies, strategies and sectoral economic plans

established on a national scale must consider the environment and sustainable development

in their objectives using the action plans identified within this framework, including:

• Rationally use natural resources and ensure their environmental sustainability;

• Develop strategies of protecting and reducing negative effects on the environment;

• Adopt production technologies that do not involve environmental pollution;

• Dispose waste and residues in areas and under conditions established by law;

• Integrate environmental protection in their projects;

• Promote the social welfare of the population considering equal distribution of the existing wealth;

• Consider the durability of the resources with an emphasis especially on equal rights on present and future generations.

Sustainable development, which is a key condition to access to the Clean Development

Mechanism (CDM), is not systematically addressed by NBI countries policies. However,

Tanzania’s National Environmental Policy highlights sustainable development as its core

concept. In DRC, the Ministry of Environment is in charge to implement the orientations of

Nile River in Egypt



4-3

the Forestry Law as far as sustainable development is concerned, including the questions of

climate change, deforestation, land degradation and biodiversity conservation.

4.2 EIA procedures and regulations

Burundi, Rwanda and Sudan have no specific EIA regulations, but only general principles

in the environmental law. In general, the law of these countries specifies that when projects,

plans or programs pose a potential risk of harming the environment including the population,

the governmental authorities will require an environmental impact study in order to assess

the impacts of the project and to identify the appropriate mitigation measures. It also

provides the contents of an environmental impact assessment report and specific details on

the responsibilities. In Sudan in particular, EIAs and SIAs (strategic impact assessment)

guidelines are in preparation under a capacity building project. However, any development

project should be subjected to EIA.

RDC does not have a specific EIA procedure regulation. However, a handbook of

environmental and social assessment procedures has been published in September 2006

within the framework of the Programme Multisectoriel d’Urgence de Rehabilitation et de

Reconstruction (PMURR) funded by the World Bank. This handbook provides all the

procedures to carry out when a sub-project of the program is submitted to the EIA

framework.

Egypt has a comprehensive EIA procedure that is managed by the Egyptian Environmental

Affairs Agency (EEAA). Law No. 4 states that the environmental impact of certain

establishments or projects must be evaluated before any construction works are initiated or

a license is issued by the competent administrative authority or licensing authority. The

Executive Regulations relating to Law No. 4 identifies the types of establishments or projects

which must be subjected to an EIA based upon the following main principles:

1. Type of activity performed by the establishment.

2. Extent of natural resources exploitation.

3. Location of the establishment.

4. Type of energy used to operate the establishment.




4-4

The procedure involves a flexible screening system and projects are classified into three

groups or classes reflecting different levels of environmental impact assessment according

to severity of possible environmental impacts:

• White list projects for establishments/projects with minor environmental impact.

• Grey list projects for establishments/projects which may result in substantial environmental impact.

• Black list projects for establishments/projects which require complete EIA due to their potential impacts.

The level of the EIA study to submit depends of the list in which the project falls. All power

projects fall into the black list and therefore require a full EIA report. For hydropower and

thermal power plants projects, the EEAA has prepared EIA guidelines. The decision taken

by the authorities regarding the assessment and/or the proposals required to be

implemented as considered necessary by the EEAA can be appealed by the developer

within 30 days after receiving such decision. However, the classification according to

environmental impacts of the projects (white, grey or black) cannot be appealed.

Ethiopia has a comprehensive EIA procedure similar to Egypt, through the 2002 EIA

Proclamations and the 2003 Environmental Impact Assessment Procedural Guideline. The

EIA framework provides lists of projects that require a full EIA, projects that require a

preliminary environmental impact study and projects that may not require environmental

impact assessment. All projects in environmentally sensitive areas should be treated as

equivalent to Schedule 1 (projects requiring full EIA). Such areas include:

Nile River in Sudan



4-5

• Land prone to erosion;

• Land prone to desertification;

• Areas which harbour protected, threatened or endangered species;

• Areas of particular historic or archaeological interest;

• Primary forests;

• Wetland of national or international importance;

• National Park and protected area;

• Important landscape;

• Religiously important area.

In Kenya, the Environmental Management and Coordination Act (1999) make EIA

mandatory for all projects specified in the Act. The process begins by the proponent who

submits plans for the project and proposes terms of reference for the environmental impact

study to the National Environmental management Authority (NEMA), which reviews the

plans and terms of reference, determines whether a shorter procedure “Project Report” is

sufficient, or whether a full Environmental Impact Assessment Study must be carried out.

The environmental impact study is carried out according to the terms of reference and

NEMA issues statement on the project and the study to be public in the gazette and in

newspapers of national circulation and in local areas of the project. NEMA also circulates the

report to lead agencies and key stakeholders, before reviewing the report and comments

made by stakeholders and public, suggests amendments and additions. If no consensus can

be reached with respect to opposing interests of stakeholders, NEMA will conclude

conditions in the environmental permit to solve these as part of the project.

Finally, NEMA issues environmental permits for the project according to the report, including

Environmental Management Plan, eventual Resettlement and Compensation Plan, and

eventual conditions, or refuses environmental permit. The whole process is completed in a

little more than three months.

Tanzania’s environmental registration and regulations of 2005 and the EIA and Audit

Regulations of 2005 and guidelines provide guidance and basis for performing

environmental assessments and regulation. Under these regulations, environmental experts

should be registered with the National Environment Management Council (NEMC).




4-6

In Tanzania, EIA is mandatory for projects proposed to be developed within or in proximity to

environmentally sensitive/critical areas (ESA), which are areas that are known from

experience to be fragile or valuable environment that can be easily harmed or destroyed by

effects of the intended development. EIA is also mandatory for projects listed in Appendix 1

of the EIA Guidelines. The definitions in this appendix incorporate an indication of scale, in a

form of quantified threshold, which clearly identifies the projects requiring EIA. For projects

listed in Appendix 2 of the Guidelines, a preliminary EIA is to be carried out to determine

whether a full EIA is needed or not. EIA is required if the particular project in question is

judged likely to give rise to significant environmental effects after that preliminary

assessment.

The proponent prepares a scoping report and terms of reference for environmental impact

assessment of a proposed project and submits to the NEMC for approval. During the

baseline study, adequate stakeholder participation must be engaged and the impact

assessment shall follow appropriate techniques and approaches as specified in the

guidelines issued under the regulations. Concerns and views from stakeholders must be

carefully taken into account during assessment of impacts and all possible alternatives and

their impacts must be assessed. The most appropriate option must be recommended. The

proponent shall also prepare an environmental and social management plan with details

about institutional responsibilities, monitoring framework, parameters indicators for

monitoring and costs of monitoring when appropriate. The Environmental Impact Statement

must be accompanied with non-technical summary in both Kiswahili and English languages.

Finally, Uganda’s has also a comprehensive EIA framework. The Environmental Impact

Assessment Regulations (1998) were enacted by the National Environment Act to make

operational the requirements for carrying out environmental impact assessments. They

contain detailed procedures for undertaking environmental impact assessments, impact

studies as well as environmental audits and monitoring. Since projects related to power

projects require large construction, they are subjected to environmental impact

assessments.

These regulations shall apply to all projects included in the Third Schedule to the Act. They

also apply to any major repairs, extensions or routine maintenance of any existing project

which is included in the Third Schedule to the Act. No developer shall implement a project

for which environmental impact assessment is required under the Act and under these



4-7

regulations, unless the environmental impact assessment has been concluded in

accordance with these regulations.

Except as provided for in the Act and these regulations, a licensing authority under any law

in force in Uganda, shall require the production of a certificate of approval of environmental

impact assessment before issuing a license for any project identified in accordance with sub-

regulation of this regulation. An inspector may, at all reasonable time, enter on any land,

premises, or other facilities to determine whether a project has complied with the

requirements for environmental impact assessment under the Act.

4.3 Water resources management policy

Water resources management in the NBI countries is a critical issue for the socio-economic

development of each country and of the region as a whole. To this end, the NBI seeks to

develop the river in a cooperative manner, by developing the Nile Basin water resources in a

sustainable and equitable way and ensuring efficient water management and the optimal use

of the resources.

In Burundi, the Law regulates the use of water resources, including licensing, management

and quality standards. In addition, the Environment Code (2000) makes it explicit that works

and construction likely to modify the hydraulic network ecosystem must be subject to the EIA

procedures and cannot be carried out until there is an agreement with the Minister in charge

of Environment.

In DRC, a draft water code is under discussion. However, the Loi du 20 juillet 1973 portant

régime general des biens, régime foncier et immobilier states that nobody can pollute water

or divert it, which means that all pollution actions must be avoided or remedied through

antipollution measures.

In Egypt, the Ministry of Water Resources and Irrigation (MWRI) has prepared a National

Water Policy till the year 2017 including three main themes: (i) optimal use of available water

resources, (ii) development of water resources, and (iii) protection of water quality and

pollution abatement.

Water Quality is separately addressed by two laws and three decrees, the most important

ones being Law No. 48 of 1982 on Protection of Nile and its waterways and Law 96 of 1962




4-8

concerning disposal of wastewaters to municipal sewers. Law 4 of 1994 on Environment

plays a significant role in the management and protection of water quality.

Ethiopia’s Water Resource Management Policy (EWRMP) was set up in 1999. Its objective

is to enhance and promote efforts towards an efficient, equitable, and optimum utilization of

the available water resources and contribute to the country's socioeconomic development on

a sustainable basis.

Kenya’s Water Act of 2002 provides the institutional and legal framework for implementing

the National Water Policy and is the basis of the country's water sector reform currently

under implementation. The Water Act of 2002 aims at providing a harmonized and

streamlined management of water resources and water supply and sewerage services. The

current reform involves the separation of water resources and water and sewerage service

provision. It vests all Kenyan water resources in the State and specifies how rights to water

usage may be acquired. It creates a corporate body called the Water Resources

Management Authority that will, in particular, receive and determine applications of permits

for water use. It also creates a Regulatory Board, called the Water Services Regulatory

Board, with powers over the provision of water services.

Rwanda has a sectoral Policy on Water and Sanitation and a Water Act under preparation.

The objective of the law is to define the applicable rules to the use, conservation, protection

and management of water resources.

Sudan has a water policy which objectives are: (i) Review and adapt water policy to meet

changing circumstances within the country, (ii) ensure that the water resources of Sudan are

properly managed, protected and efficiently utilized for the benefit of all, (iii) provide the

basis for the on-going development of water related regulations and legislation, and (iv)

strengthen and clarify the functions and responsibilities of water related institutions in both

the public and private sectors in Sudan.

Tanzania’s policy for Water Resources Management has the objective to promote the

sustainable and equitable development and use of water resources. Finally, Uganda has a

Water Policy and Water Act which provide for the use, protection and management of water

resources and supply.



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4.4 Climate change policies

All NBI countries have ratified the United Nations Framework Convention on Climate

Change (UNFCC) and are non-annex 1 parties to that Convention. They have also all ratified

the Kyoto Protocol. Burundi, DRC, Rwanda, Sudan and Tanzania have developed their

National Adaptation Plan of Action that identifies various strategies in each sector of the

economy depending on vulnerability to climate change.

Burundi has set up a National

Strategy of implementation of

the UNFCC, especially for the

energy sector by prioritizing

hydroelectricity and increasing

solar energy.

Egypt has developed its own

Clean development Mechanism

Strategy undertaken in

collaboration with the Ministry

of State for Environmental

Affairs and Egyptian

Environmental Affairs Agency

(EEAA). Egypt’s strategy on the

CDM aims at mainstreaming

environment into the relevant

sectors and minimizing the

environmental impacts of

development, through

identification of priority policies

and planning for their

implementation.

The objective of Egypt’s CDM strategy is to develop options and opportunities presented by

potential international markets for greenhouse gas (GHG) emission reductions through the

Clean Development Mechanism (CDM) of the Kyoto Protocol and to identify the institutional

Sand and salt crust




4-10

prerequisites needed to participate in the CDM. In order to achieve these objectives, the

strategy provides:

• An overview on existing work and earlier initiatives in GHG emission abatement and the CDM in Egypt;

• An assessment of the potential for CDM projects in Egypt in the energy, industry, transportation, solid waste management and forestry sectors;

• An assessment of the demand, size and prices in the international market for emission reductions from CDM projects and the identification of Egypt’s opportunities in the market;

• Options and recommendations for the development of the institutional framework and the identification of key capacity building needs that will enable Egypt’s participation in the CDM;

• A portfolio of possible CDM projects to facilitate prompt start of the CDM in Egypt.

Ethiopia has developed general sectoral policies which relate to climate change. In Kenya

and Tanzania, the need to reduce greenhouse gases emissions is indirectly addressed in

energy and environmental laws and in Uganda, the need to reduce greenhouse emissions is

specifically addressed in the National Environment Management Policy.

4.5 Forest conservation / Biodiversity

Most NBI countries have a

Forestry Code, mostly those

of the Nile Equatorial Lakes

where forest is abundant, to

ensure sustainable forest

management. In DRC for

example, the Forestry Code

indicates that the

government will improve

environmental management

and calls for the adoption of

specific regulations for that purpose. The Code includes the obligation to consult affected

populations but does not explicitly provide for EIAs even if it mentions that EIA are part of

modern management of forestry resources. In general, the Forest Code of NBI countries set

the rules and regulations governing the management, exploitation and monitoring of forests

as well as the forest police force.

Waterfall in Uganda



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In addition, most NBI countries have ratified the 1992 Convention on Biological Diversity

prepared during the Earth Summit at Rio, and have developed national strategies and action

plans for conservation of biodiversity, including the establishment of protected areas

networks.

4.6 International environmental treaties and conventions

The NBI countries are party to several international conventions and protocols that deal with

the environment. The most important related to power projects are:

• United Nations Framework Convention on Climate Change and

Kyoto Protocol

• Convention Relative to the Preservation of Fauna and Flora in their Natural State

• International Plant Protection Convention

• African Convention in the Conservation of Nature and Natural Resources

• Convention on Biological Diversity

• Convention on Wetlands of International Importance especially as Waterfowl Habitat (RAMSAR).

• Convention for the Protection of the World Cultural and Natural Heritage

4.7 Land issues and resettlement policy

Land issues and expropriation procedures are regulated by land related

laws in all NBI countries. However, there are differences from one country

to another.

In some cases, the laws are quite old. For instance in Sudan, the Land

Registration and Settlement Act was enacted in 1925. The Land

Acquisition Act, enacted in 1930, outlines detailed procedures to be

followed in the acquisition of land and rules governing payment of

compensation of land for public purposes.

In other cases, the land regulations are entangled and land issues can not be adequately

addressed. For instance, Kenya does not have a clearly articulated land policy and hence

Nile River delta




4-12

important land issues such as land use, management, tenure, reforms, environmental

protection, planning and conflict resolution are currently inadequately addressed through the

existing system. Land administration is operated on the basis of outdated legal framework

and many legislations, making conveyance a nightmare.

The situation is different in Tanzania where the land policy has been updated in 1999 when

the village land act was formulated. However, there still remains confusion in the operation

of land policy issues related to customary laws. In Tanzania, there is no resettlement act but

the World Bank regulations are followed when resettlement issues arise in projects

particularly those financed by the World Bank.

In most countries, the

existing laws specify the

expropriation procedures in

the case of public utility

interest projects such as

dams or infrastructure

projects. In some countries,

compensation rates are

determined. However, in

most case the existing

compensation rates and

laws do not cover all aspects of involuntary resettlement such as income restoration of

livelihoods and living standards. This situation affects negatively the standard of living of the

affected people, in some cases resulting into impoverishment.

Ethiopia does have a national resettlement and rehabilitation policy framework which

addresses the importance of compensation payments for the loss of assets at replacement

costs, giving opportunities to locals to share project benefits and assisting Person Affected

by a Project (PAP) in relocation / rehabilitation.

In many countries, resettlement policy frameworks complying with national regulation and

the World Bank safeguard policy OP 4.12 applying to involuntary resettlement, have been

developed lately in specific projects funded by multilateral development banks. For instance:

Kibera - Kenya



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• In 2003, the “Ministère de l’Agriculture et de l’Élevage” of Burundi has developed a Resettlement Policy Framework within the Projet de Réhabilitation et d’Appui au Secteur Agricole du Burundi (PRASAB);

• In 2006, the “Ministère du Plan” of the Democratic Republic of Congo has developed a Resettlement Policy Framework within the “Projet d’Urgence d’Appui à l’Amélioration des Conditions de Vie” (PUAACV);

• In 2006, the “Ministère des Infrastructures” of Rwanda has developed a Resettlement Policy Framework within the “Projet d’Infrastructures et de Gestion Urbaine (PIGU).

However, these frameworks only apply to the concerned projects. They do not constitute

national legal frameworks for involuntary resettlement.

4.8 Poverty reduction and socio-economic development

With the assistance of multilateral development banks mainly the World Bank and the

International Monetary Fund, most of the countries have developed poverty reduction

strategies summarized in a “Poverty Reduction Strategy Paper” (PRSP). These papers

describe a country's macroeconomic, structural and social policies and programs to promote

growth and reduce poverty. They are prepared by governments through a participatory

process including the civil society. In addition, there have been constant reviews to update

the process for better performance. The countries PRSP can be consulted through the

following link:

http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTPOVERTY/EXTPRS/0,,menuP

K:384207~pagePK:149018~piPK:149093~theSitePK:384201,00.html

All the poverty reduction strategies are aimed to the achievement of the Millennium

Development Goals by 2015. The poverty reduction strategies are the core objectives of the

socio-economic development of all countries.

The specific objectives and means of the strategies vary from one country to another

depending on the country’s baseline situation and priorities in terms of socio-economic

development. However, some general objectives are shared by most of the countries:

• Promote good governance and security: strengthening the rule of law, reforming the justice system, increasing the democratic culture, promoting efficient public administration, pursuing decentralization, tackling corruption, improving security in certain countries through demobilization and disarmament of militants.

• Promote stable, sustainable and equitable economic growth: revitalizing of agriculture as this sector is the source of livelihood of most of the population.




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Agriculture is also believed as a potential source to generate primary surplus to fuel the growth of export and industry, strengthening the private sector growth, rehabilitating or upgrading of transport, energy and telecommunication infrastructures, restoration of macro economic equilibrium, prudent monetary and fiscal policies aimed at low inflation, competitiveness, trade and expanding integration in regional or world markets.

• Improve access to social services to develop human capital: targeting the health and education sectors, water supply and sanitation, urban planning and decent housing, social safety nets. In all countries, actions toward vulnerable groups are emphasized. In some of the countries such as Burundi and DRC, some actions are geared toward refugees and the displaced people.

• Fight against the HIV/AIDS pandemic: bring a sharp reduction in the spread of the pandemic through prevention of the transmission, access to medicines, support for affected individuals, families and communities, institutional capacity building and, mitigation of the social and economic impacts of HIV/AIDS.

In each country, these major issues are translated in medium and long term sectoral policies

and programs which are to move the countries forward on the human development index.

4.9 Public health policy

In the NBI countries, the main diseases almost always include malaria, diarrhoea, respiratory

infections, sexual related diseases including HIV/ AIDS.

All NBI countries have public health policies aimed to ensure primary health care for all and

reduce morbidity and mortality from major causes of illness. Tanzania for instance, has been

implementing health reforms to improve the quality health care delivery system to clients.

Fighting against HIV/AIDS is part of most public health policies.

In collaboration with the World Health Organization, most of the countries have put in place a

specific policy on HIV/AIDS in order to reduce the spread of the pandemic and provide

proper care for the affected people. These policies are tackled to the poverty reduction

strategies of the countries.

Improving access to drinking water is also addressed by the poverty reduction strategies of

the countries. A better access to water is a key issue in the improvement of the access to

social services to develop human capital. In the public health policies, water-borne diseases

are mainly addressed by programs or actions based on:

• developing water sources and rehabilitate potable water supply systems;



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• strengthening water production facilities;

• strengthening existing sanitation programs and expanding them nationwide;

• promoting community management of water supply;

• training and informing populations about hygiene and sanitation techniques appropriate to their environment.

Public health issues related to power projects mainly concern sexually transmitted diseases

including HIV/AIDS during construction phase and water-borne diseases during exploitation

phase. The NBI countries do not have specific guidelines regarding public health and power

projects, apart from those, quite general, developed in EIA guidelines. However, the

tendency of international EIA guidelines is to pay an important attention to these issues

especially HIV/AIDS.

4.10 Vulnerable groups including women policy

Within their poverty reduction strategy papers, NBI countries identify their vulnerable groups.

Depending on the specific social context and history of each country, the vulnerable groups

may vary but they are generally identified in the following groups:

• rural and urban poor people;

• internal and external refugees or displaced persons;

• households suffering from HIV/AIDS;

• widowed heads of household;

• children;

• the elderly and disabled; and

• orphans (special attention is paid to orphans as the result of HIV/ AIDS disease).

In some case, for instance in Burundi, indigenous communities are identified as vulnerable

groups and a special policy has been developed for them.

In order to assist vulnerable groups, the poverty reduction strategies of the countries focus

on the necessity to identify the specific needs of these groups to reduce risks of further

Poor rural people housing




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vulnerability. They also highlight that particular actions must be engaged to make sure that

these needs are taken into account in all sectoral programs and projects.

In addition, the ministry of social affairs of most countries have specific targeted actions for

the vulnerable groups under the pillar of social safety nets or social security. The aim of

these actions is to help improve the economic and social life of the vulnerable groups

whether they be handicapped, widowed heads of household or else.

All NBI countries have recently developed and implemented gender policies to encompass

women promotion, gender and equity issues. The principal elements of the policies or

strategies are generally as follows:

• empower women economically, politically and socially;

• eliminate all forms of discrimination against women;

• increase the participation of women in decision making;

• raise awareness and increase education;

• establish and coordinate the implementation of campaigns against the violence against women;

• encourage economic projects that promote the status of women while reducing poverty as well;

• integrate gender and equity issues into all policies and development programs.

To some extent, the policies on women are embedded into the policies for vulnerable

groups. Particular attention must be given to women’s specific needs and specific actions

must be taken to ensure the integration of these needs in all programs and projects in the

countries development process.

The engagement of NBI countries to enhance the role of women in society varies from one

country to another. In Sudan for instance, the government initiated policies and programs in

the 1990s but since then, no such initiative has been recorded. Of all NBI countries, Rwanda

can be considered as a leader in women’s issues. Rwanda applies affirmative action for the

promotion of women, for example, 30% of decision-making positions at all levels are

allocated to women, women communal funds (micro-credit) have been set-up, women forum

structures like the National Women Council have been formed and constitutionalised by the

2003 Rwandan Constitution, article 187. A Gender Monitoring Office has been established

under article 185 of the constitution to enable women to participate in and benefit equally

from development efforts. Rwanda has a National Gender Policy (NGP) established in 2003.



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The goal of the NGP consists in clearly defining the process of integrating gender in all

sectors of development and for the promotion of gender equality and equity in Rwanda.

Since April 2007, specific strategies have been developed to effectively make Rwanda’s

NGP operational.

4.11 Historical and cultural sites policy and regulation

All NBI countries have ratified the 1973 UN Convention concerning the protection of the

world culture and natural heritage. In addition, except for Sudan, the countries have laws

which aim to protect their national cultural heritage. However, Sudan’s environmental policy

covers the issue. These laws usually cover at least the following subjects:

• The discovery of any objects related to history, prehistory art or archaeology found during authorized excavations or fortuitously must be notified to the Minister of Culture within a time frame;

• All goods discovered on the national territory and that are relevant to history, prehistory art or archaeology, are part of the national cultural heritage and are subject to classification.

In some countries such as Egypt of course, the laws go much further:

• Creation of lists of the archaeological and historical sites;

• Protection of the archaeological and historical sites;

• Prohibition of the exportation of antique objects without authorization.

Nile River in Egypt




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Due to its history, historical and cultural sites of Egypt are considered as a very important

heritage that must be integrally protected against development. The law governing the

protection of Egyptian cultural heritage covers the definition of cultural property, system of

ownership, and extension of protection.

Ethiopia’s historical and cultural sites policy is a bit different from other countries as it

encourages communities to play a leading role in assessing and nominating places or items

of heritage significance and in conserving them. Ethiopia’s policy promotes a sustainable

heritage conservation and management programme that seeks to understand all the

elements of the system, their interrelationships and the ways in which each contributes to

social and economic development. It promotes the perception of heritage conservation as

part of, and integrated with, Ethiopia's general social and economic development

Though, historical and cultural issues are not always covered by national IA regulations,

some countries have developed appropriate frameworks within specific projects. For

instance in DRC, a Historical and cultural sites policy framework has been elaborated in July

2004 within the Programme Multisectoriel d’Urgence de Réhabilitation et de Reconstruction

(PMURR). The document entitled « Cadre de gestion des sites culturels : sites

paléontologiques, sites archéologiques, sites historiques et sites naturels uniques »,

complies with the World Bank O.P. 4.11 safeguard policy on cultural property.

4.12 Indigenous community policy

Many of the NBI countries have indigenous communities notably Rwanda, Burundi, DRC,

Tanzania, Uganda, Kenya and Ethiopia.

Some countries such as DRC and Tanzania have no specific indigenous community policies

even though the countries may in fact comprise indigenous communities. In DRC, a law is

being considered to promote and protect the pygmies and arrangements exist in the

Constitution to protect all minorities and ethnic groups. In Tanzania, the concept of

indigenous community does not exist in the law. In the country, there are Hadzabe,

Sandawe and Tindiga tribes which are hunters and fruit gathers and are practising traditional

styles of living. They live in bushes and wear hide skins or tree barks. The government has

not formulated a special policy for these groups but is putting a lot of efforts to transform the

groups, by bringing important social services such as school and water closer to them.



4-19

Ethiopia and Kenya are in the process of developing indigenous peoples policies. In certain

countries such as Rwanda, home to Batwa pygmy communities, the government is still

arguing whether or not the Batwas are an indigenous community. The government does not

give them that status but does recognize them as vulnerable and marginalized.

A few countries have programs or projects aimed to improve the status of indigenous

communities. It is notably the case for Kenya and Burundi.

In Kenya, the Justice and Equality

program has started the process of

enhancing dialogue, conducting

active and strategic advocacy

processes and monitoring activities

all aimed at mainstreaming the rights

of minorities and indigenous

communities within the National

Action Plan on human rights, Kenya

National Commission on Human

Rights and other national processes

that affect minorities and indigenous

communities.

The Dubbed, Dialogue, Advocacy and Monitoring (DAM) project seeks to highlight, promote

and protect minority and indigenous peoples’ rights. The project objectives are:

• To strengthen the capacity of minority and indigenous communities in Kenya to mitigate the violations of their rights by increasing their access to the Kenya National Commission on Human Rights;

• To highlight, identify and elaborate critical human rights issues among minorities and indigenous communities in Kenya to the media and policy makers with a view to their being recognised and mainstreamed;

• To monitor state compliance with international standards that promote and protect minority and indigenous peoples’ rights.

In Burundi, a special project aims at improving the status of indigenous communities. The

PRADECS (Projet d'appui au développement communautaire et social) established in

October 2006, has a plan for the Batwa populations of Burundi based on three specific

Batwa housing




4-20

issues: 1) institutional opportunities; 2) organizational opportunities and; 3) legal

opportunities.

Though Kenya and Burundi have taken important steps to ensure the protection of the rights

of indigenous communities, indigenous community policies have not spread out in the NBI

countries. It has to be noticed that in the NBI countries where indigenous communities live,

projects recently funded by the World Bank are required to develop, when relevant, specific

frameworks complying with the Bank 4.10 safeguard policy regarding indigenous peoples.

4.13 Institutional framework in the NBI countries

The national institutions concerned by the regional EA framework for power investment

projects are listed in Table 4.2.

Table 4.2 National institutions concerned by the EA framework for power projects

Country EIA regulatory body Ministry in charge of energy * Main power utility *

Burundi

Ministère de l’Aménagement du Territoire, du Tourisme et de l’Environnement

Ministère de l’Énergie et des Mines

Régie de Production et de Distribution de l’Eau et de l’Électricité (REGIDESO-SP)

DRC Ministère de l’Environnement

Ministère de l’Énergie Société nationale d’Électricité

Egypt Egyptian Environmental Affairs Agency

Ministry of Electricity and Energy

Egyptian Electricity Holding Co. (EEHC)

Etiopía Federal Environmental Protection Authority

Ministry of Water Resources Ministry of Mines and Energy

Ethiopian Electric Power Corporation (EEPCO)

Kenya National Environment Management Authority Ministry of Energy

Kenya Electric Generating Co (KenGen) Kenya Power and Lighting Co. Ltd.

Rwanda Rwanda Environment Management Authority

Ministry of Infrastructure

ELECTROGAZ

Sudan Higher Council of Environment

Ministry of Energy and Mining

National Electricity Corporation

Tanzania National Environment Management Council

Ministry of Energy and Minerals

Tanzania Electric Supply Company Ltd (TANESCO)

Uganda National Environment Management Authority

Ministry of Energy and Mineral Development

Uganda Electricity Transmission Co. Ltd.

* The institutions in charge of power planning, generation and transmission have in general environmental units within their organisation. For example in Ethiopia, such environmental units exist within the Ministry of Water Resources, the Ministry of Mines and Energy and the Ethiopian Electric Power Corporation (EEPCO).



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The consultations carried out with representatives of national environmental agencies of the

NBI countries allowed to conclude that they seem quite capable to manage the EA

framework proposed in this document for regional power projects. They affirm that they are

used to deal with projects submitted to EA and analyse environmental impact assessments

(EIA) studies presented to them. However, there are some differences in the level of

institutional capability and means from one country to another. Moreover, regional power

projects represent major projects for which environmental and social issues must be

analysed according to very restrictive international practices and important to comply with in

order to ensure the protection of the natural and human components in the Nile basin.

Therefore, an analysis of the institutional capacities in the environmental management of

major power projects is essential to better understand the existing level and regional

differences of capacities in order to identify in details the required capacity building actions to

handle environmental matters and cope with the requirements of the proposed EA

Framework. Such an analysis may be divided in four stages:

• Identification of the institutional requirements of the EA framework for regional power projects;

• Individual analysis of each national environmental agency;

• Definition of the capacity building program;

• Reporting.

First, the Consultant mandated to conduct the institutional analysis shall evaluate in detail

the requirements in terms of means to establish in each national environmental agency.

These means refer to required qualifications of the staff, equipment, and financial resources.

Another important aspect to consider is the need in regional coordination required for the

implementation of this EA framework. This evaluation shall be completed by the preparation

of the profile of requirements to which the national environmental agencies should comply

with in order to be capable to implement the EA framework for regional power projects.

Following the initial evaluation, the Consultant shall meet each national agency to analyse its

existing situation in comparison with the required profile. This analysis should allow to

identify the gaps to fulfil in terms of qualifications, means and financial resources, as well of

regional coordination to meet the requirements of the EA framework.




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The analysis of gaps will provide the essential information to prepare a comprehensive and

quantified capacity building program for each national agency, at short term and long term.

In function of the gaps analysis, the capacity building program may include individual or

global training sessions. The last step of the institutional analysis will consist in reporting the

approach, the gaps identified for each national agency, and the detailed capacity building

program with its budget and schedule.



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5 ISSUES RELATED TO ENVIRONMENTAL ASSESSMENT CONSIDERED BY FUNDING AGENCIES

This section summarises the review of how the environmental and social issues related to

power projects are considered by major international funding agencies, i.e. World Bank,

African Development Bank, Canadian International Development Agency and European

Union.

5.1 Environmental policies

The four considered funding agencies have developed environmental policies which

objectives are quite similar: environmental sustainability, poverty reduction, improvement of

the people's quality of life, and protection of the quality of the regional and global

environment.

The World Bank’s environmental policy framework can be distinguished from the policies of

the other funding agencies by its ten safeguard operational policies:

• Environmental Assessment (O.P. 4.01)

• Natural Habitats (O.P. 4.04)

• Pest Management (O.P. 4.09)

• Indigenous Peoples (O.P. 4.10)

• Cultural Property (O.P. 4.11)

• Involuntary Resettlement (O.P. 4.12)

• Forestry (O.P. 4.36)

• Safety of Dams (O.P. 4.37)

• International Waterways (O.P. 7.50)

• Disputed Areas (O.P. 7.60)

These are indeed critical to ensuring that potentially adverse environmental and social

consequences are identified, minimized, and mitigated. The O.P. 4.01 is considered to be

the umbrella policy for the Bank's environmental safeguard policies. Table 5.1 presents the

safeguard policies potentially applicable to regional power projects.




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Table 5.1 World Bank Safeguard Policies potentially applicable to power projects

Policy General description

Environmental Assessment (OP 4.01)

Outlines Bank policy and procedures for the environmental assessment of Bank lending operations. Environmental consequences should be recognized early in the project cycle and taken into account in project selection, siting, planning, and design by preventing, minimizing, mitigating, or compensating for adverse environmental impacts and enhancing positive impacts.

Natural Habitats (OP 4.04)

States that the Bank does not support projects involving the significant conversion of natural habitats, unless there are no other feasible alternatives for the project and its siting, and unless comprehensive analysis demonstrates that overall benefits from the project substantially outweigh the environmental costs. If the EA indicates that a project significantly converts or degrades natural habitats, the project must include mitigation measures acceptable to the Bank.

Indigenous Peoples (OP 4.10)

This policy provides guidance to ensure that indigenous peoples benefit from development projects, and to avoid or mitigate adverse effects of Bank-financed development projects on indigenous peoples. Measures to address issues pertaining to indigenous peoples must be based on the informed participation of the indigenous people themselves.

Cultural Property (OP 4.11)

The Bank policy is to assist in cultural property preservation and take actions to avoid their elimination. Specifically, the Bank normally declines to finance projects that will significantly damage non-replicable cultural property, and will assist only those projects that are sited or designed so as to prevent such damage. The Bank will assist in the protection and enhancement of cultural properties encountered in Bank-financed projects, rather than leaving that protection to chance.

Involuntary Resettlement (OP 4.12)

Involuntary resettlement as used in this policy covers both (a) the involuntary displacement (physical and nonphysical) of affected peoples that arises from change in land or water use, loss of productive assets, or loss of income or means of livelihood, whether or not the people move to another location; and (b) the measures for mitigating the impacts of displacement.

Safety of Dams (OP 4.37)

When the Bank finances a project that includes the construction of a new dam, it requires design and construction supervision by experienced and competent professionals. The borrower is also required to implement certain dam safety measures for the design, bid tendering, construction, operation, and maintenance of the dam and associated works. For small dams, generic dam safety measures designed by qualified engineers are considered adequate. For large dams—dams that are 15 meters or more in height, or are between 10 and 15 meters and present special design complexities—the Bank requires special reviews by an independent panel of experts. Review requirements include design, construction, plans for construction supervision and quality assurance, instrumentation, operations and maintenance, and emergency preparedness. The Bank requires prequalification of bidders during procurement and bid tendering and periodic safety inspections of the dam after completion.

International Waterways (OP 7.50)

The Bank recognizes that the cooperation and goodwill of riparians is essential for the efficient utilization and protection of international waterways and attaches great importance to riparians making appropriate agreements or arrangements for the entire waterway or any part thereof. Projects requiring clearance include hydroelectric, irrigation, flood control, navigation, drainage, water and sewerage, industrial, and similar projects that involve the use or potential pollution of international waterways.



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5.2 Environmental and social assessments procedures

The World Bank and the African Development Bank (AfDB) have quite similar environmental

impact assessment procedures, since AfDB’s procedures were recently reviewed in order to

get harmonised with those of the World Bank. These procedures generally follow the project

cycle: identification, preparation, appraisal, loan negotiations, project implementation and

supervision, and project completion. For each of these steps, environmental and social

aspects to consider are clearly defined within a set of ESIA procedures.

World Bank’s OP 4.01 and BP (Bank Procedure) 4.01 define the EA procedure. At the

identification phase, screening is carried out by examining the type, location, sensitivity and

scale of the project and the nature and magnitude of its potential impacts. The project is then

assigned to one of the following four categories, reflecting the potential environmental risks

associated with the project:

• Category A: A proposed project is classified as Category A if it is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. EA for a Category A project examines the project’s potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the “without project” situation), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. For a Category A project, the borrower is responsible for preparing an EIA report, or a suitably comprehensive regional or sectoral EA.

• Category B: A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas, including wetlands, forests, grasslands, and other natural habitats, are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigation measures can be designed more readily than for Category A projects. The scope of EA for a Category B project may vary from project to project, but it is narrower than that of Category A EA. Like Category A EA, it examines the project’s potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance.

• Category C: A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EA action is required for a Category C project.

• Category FI: A proposed project is classified as Category FI if it involves investment of Bank funds through a financial intermediary, in subprojects that may result in adverse environmental impacts.




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At the preparation phase, the Bank’s task team assists the borrower in drafting the terms of

reference (TOR) for the EA report, while ensuring adequate interagency coordination and

consultation with affected groups and local NGOs. The EA must be carried out in

accordance with OP 4.01, national legislation and international environmental agreements.

At the project appraisal phase, the main tasks include the review of the EA results based on

the TOR, by paying attention to the consultation process and the environmental

management plan (EMP).

The European Commission has developed a comprehensive Environmental Integration

Handbook in order to assist partner countries to mainstream environment. The EIA process

described in this Handbook is quite similar to the procedures of the World Bank and AfDB.

The integration of environmental measures is planned throughout all phases of the

operations cycle, but emphasis is put on the initial phases of design and preparation as they

are of key importance.

EIA screening of projects supported by the European Commission (EC) should be based on

national legislation and procedures and on EC criteria which classify individual projects into

three categories:

• Category A projects which always require an EIA;

• Category B projects, as well as projects that are not clearly classified, require further information to decide if an EIA is required or not;

• Category C projects do not require an EIA.

An EIA is required for projects that are likely to have significant impacts on the environment.

It should be prepared if one the following conditions applies:

• Required for this type of project under national legislation;

• The project is classified as Category A;

• The project is classified as Category B but, considering the particular vulnerability of the recipient environment, the screening process recommends an EIA;

• An existing Strategic Environmental Assessment (SEA) clearly recommends an EIA for this kind of project.



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Examples of Category B power projects that will require an EIA are the following:

• The project affects a protected area or other areas classified as vulnerable;

• The project requires the acquisition or conversion of significant areas of land that are important for environmental services;

• The project requires (during or after construction) significant amounts of water, energy, materials or other natural resources;

• The project is likely to result in the production of significant quantities of wastes, especially hazardous or toxic wastes;

• The project produces significant volumes of effluents or air pollutants;

• The project affects important water bodies or significantly affect water regimes;

• The project requires significant accommodation or service amenities to support the workforce;

• The project attracts or displaces a significant population and economic activities;

• There is a risk that the project creates suitable habitats for disease vectors of for pests;

• The project is likely to cause important soil erosion or degradation, considering its activities and its location on steep slopes or vulnerable soils;

• The project affects particular ecosystems, such as natural forests, wetlands, coral reefs, mangroves or habitats of endangered/threatened species; and

• The project is located in or close to a site of high cultural or scenic value.

Following the identification of the project, including screening, the formulation phase includes

the scoping and the preparation of the EIA study. Scoping is the operation used to define

the aspects that need to be covered in the EIA study. The views and concerns of key

stakeholders should be taken into account in defining the scope of the EIA.

After approval of the scoping study by the authorities, the EIA study is carried out and its

report should provide conclusions and recommendations regarding (i) the environmental

acceptability of the project, (ii) the best alternative and (iii) the measures that should

accompany this alternative to mitigate negative environmental impacts and increase positive

effects. These measures should be organized in an Environmental Management Plan

(EMP), including a monitoring programme. The EMP should be reflected in the project’s

contractual documents.

Participation and consultation of stakeholders must be integrated in this process within the

local institutional framework. Particular care should be taken to (i) make full use of the

experience and know-how of the population living in the environment being studied, (b) take




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into consideration the needs, values and interests of the population concerned, including

women and marginalized social groups. Public participation should be provided for from the

earliest stages of the process.

5.3 Natural resources management policy

The integrated water resources management approach (including river basin management),

defined as a comprehensive approach that views water as a single resource with competing

uses and inter linkages with the ecological, social and economic systems, is privileged by

the funding agencies when projects and development involve the use of water.

The World Bank’s water resources management policy (O.P. 4.07) aims notably at providing

water for productive activities, including hydropower, in a manner that is economically viable,

environmentally sustainable, and socially equitable. The policy encourages borrower

countries to develop and allocate water resources, by considering cross-sectoral impacts in

a regional setting (e.g., river basin). The AfDB has a similar water management policy. CIDA

and the European Union both supports the achievement of the water targets in the UN

Millennium Development Goals, helping countries develop and implement integrated water-

resource management plans.

The OP 4.04 – Natural

habitats prohibits World Bank

support for projects which

would lead to the significant

loss or degradation of any

Critical Natural Habitats,

whose definition includes

those natural habitats which

are either:

• Legally protected;

• Officially proposed for protection; or

• Unprotected but of known high conservation value.

In other (non-critical) natural habitats, Bank supported projects can cause significant loss or

degradation only when there are no feasible alternatives to achieve the project's substantial

Nile River in Sudan



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overall net benefits, and acceptable mitigation measures, such as compensatory protected

areas, are included within the project.

5.4 Resettlement policy

Under World Bank OP 4.12 – Involuntary Resettlement, any operation that involves land

acquisition or is screened as a Category A or B project for environmental assessment

purposes should be reviewed for potential resettlement requirements early in the project

cycle. The overall objectives of OP 4.12 are the following:

(a) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs.

(b) Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs.

(c) Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher.

The OP 4.12 covers impacts caused by:

(a) The involuntary taking of land resulting in: relocation or loss of shelter; loss of assets or access to assets; or loss of income sources or means of livelihood, whether or not the affected persons must move to another location; or

(b) The involuntary restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of the displaced persons.

Different planning instruments are used to comply with OP 4.12: Resettlement plan,

Abbreviated resettlement plan, Resettlement policy framework, and Resettlement process

framework.

• A resettlement plan is a condition of appraisal for all projects that entail involuntary resettlement.

• An Abbreviated resettlement plan may be agreed by the World Bank with the borrower for a project where impacts on the entire displaced population are minor, or fewer than 200 people are displaced.

• A Resettlement policy framework is required for sector investment operations, financial intermediary operations, other World Bank-assisted project with multiple




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subprojects and each subproject in a project that may involve involuntary resettlement.

• A Resettlement process framework is prepared when World Bank-supported projects may cause restrictions in access to natural resources in legally designated parks and protected areas.

The resettlement plan covers the elements below:

• socio-economic studies;

• Legal framework;

• Institutional framework;

• Eligibility for compensation;

• Resettlement measures;

• Site selection, site preparation, and relocation;

• Housing, infrastructures and social services;

• Environmental protection and management;

• Community participation by both resettlers and hosts;

• Grievance procedures;

• Organizational responsibilities;

• Valuation and compensation for lost assets;

• Land tenure, land acquisition, transfer and productive re-establishment;

• Implementation timetable, monitoring and evaluation.

Kibera - Kenya



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5.5 Poverty reduction

For the World Bank, poverty reduction is covered under OP 1.00. The Bank is committed to

assist in reducing poverty in its member countries. It focuses mainly on integrating poverty

reduction objectives in country programming and monitoring progress. The major tool is a

poverty assessment that includes a poverty profile of the country and recommendations for

government action.

Poverty Reduction Strategy Papers provide the basis for World Bank and IMF assistance as

well as debt relief under the HIPC (Heavily Indebted Poor Countries) initiative. According to

the World Bank, PRSPs should be country-driven, comprehensive, partnership-oriented, and

participatory. A PRSP should be written by a country every three years.

The African Development Bank has adopted in 2004 a policy on poverty reduction with a set

of guiding principles based on the major elements of the new conceptual and strategic

frameworks. Specifically, it is based on principles of poverty-focus, national ownership,

participation of civil society and outcome orientation. Recently, the AfDB has also

emphasized the importance of strengthening and rationalizing regional integration schemes,

addressing problems of population growth and developing poverty reduction strategies for

conflict as well as post-conflict countries. This emphasis on regional integration is specific to

the AfDB; it is particularly relevant for the NBI EIA framework for regional power investment

projects.

Major measures that the AfDB

intends to use to integrate

poverty alleviation dimensions

in the Bank’s interventions

include:

• All projects proposed for inclusion in the pipeline should be screened with respect to their possible contribution to the reduction of absolute poverty, and results reflected in the Project Brief.

Children from Rwanda




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• Projects/programs in the pipeline may be categorized into two categories: P for those with strong poverty reduction focus and G for those with general impact.

• The preparation phase is critical to identify the poor from the population affected, define poverty reduction components and determine the required institutional framework for implementation.

• Project matrices should take into account poverty indicators and beneficiary assessment criteria that would allow monitoring and evaluating the effectiveness of poverty interventions.

The screening of projects with respect to their possible contribution to poverty alleviation and

the categorization of projects/programs into categories according to their impact on poverty

reduction are good planning practices that should be integrated in the NBI EIA framework for

regional power investment projects.

5.6 Public health

Within the World Bank environmental and social assessments procedures, the Occupational

Health and Safety issue is identified as an issue that must be reviewed in an EA when

applicable. Relevant projects, particularly industry and energy projects, should include formal

plans to promote occupational health and safety.

Moreover, human health and safety concerns should be integrated in EA by:

• Introducing the relationship between the environment and health hazards, health risks, and health impacts;

• Screening development proposals for hazards to human health and safety;

• Assessing and quantifying the risks to human health and safety of hazards identified with, or resulting from, projects;

• Developing health risk management proposals as part of the overall environmental management plan (EMP).

There are a variety of health impacts associated with a power project. Possible health

impacts include sexually transmitted diseases (STD), HIV/AIDS and accidents resulting

during construction activities. Waterborne diseases are other possible health impacts which

might result from a project. Waterborne diseases are usually caused by a lack of water

supply and sanitation. Access to safe drinking water may be jeopardized as a result of a

project in a riparian country or region. Therefore, waterborne diseases impacts should be

considered during an Environmental Impact Assessment.



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Like the World Bank, the AfDB, CIDA and European Union have made strong commitments

to address HIV/AIDS and access of populations to safe drinking water. Consequently, these

issues should be addressed in an EIA framework for regional power investment projects.

5.7 Vulnerable groups including women

Thru its different policies notably OP 4.12, the World Bank specifies that particular attention

must be paid to the needs of vulnerable groups among those affected by a project (in the

case of OP 4.12, the displaced people), especially those below the poverty line, the landless,

the elderly, women and children, indigenous peoples, ethnic minorities, or other persons who

may not be protected through national legislation. Therefore, an EIA should identify the

vulnerable groups among those affected and state specific mitigation measures to assist

these groups.

The World Bank’s OP 4.20 specifically addresses Gender and Development issues. The

objective of OP 4.20 is to assist member countries to reduce poverty and enhance economic

growth, human well-being, and development effectiveness by addressing the gender

disparities and inequalities that are barriers to development, and by assisting member

countries in formulating and implementing their gender and development goals.

Though only the World Bank

addresses vulnerable group

issues in its EIA framework,

all considered funding

agencies address gender

issues. For these funding

agencies, incorporating

gender dimensions in the

environmental impact

assessment process is

compulsory. Therefore, it is

recommended that the NBI EIA framework for regional power investment projects include

gender issues.

Poor African family




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5.8 Historical and cultural sites policy

Obviously, historical and cultural property is an issue in the Nile riparian states. Accordingly,

this issue must be reviewed in an Environmental Impact Assessment of NBI regional power

investment projects. Therefore, it shall be integrated in the EIA framework and procedures.

The World Bank OP 4.11 on Cultural Property may be used as a reference for this

integration in the project cycle.

The World Bank is the only funding

agency with a specific policy

regarding historical and cultural

sites. According to OP 4.11 –

Cultural Property, the World Bank’s

does not intend to finance projects

that will significantly damage non-

replicable cultural property and to

assist initiatives design to prevent

such damage. When cultural

property is identified in the project

area, a brief reconnaissance survey must be undertaken to assess the archaeological,

paleontological, historical, religious or natural value of such cultural property. The

significance of heritage impacts shall be assessed during the preparation phase, and

appropriate measures should be developed to avoid, minimize or mitigate the impacts.

5.9 Indigenous communities policy

Since 2005, the World Bank has a specific Operational Policy (OP 4.10) dedicated to

Indigenous People. According to this policy, the Bank’s mission of poverty reduction and

sustainable development must ensure that the development process fully respects the

dignity, human rights, economies, and cultures of Indigenous Peoples. Some of the steps

projects likely to affect (negatively or positively) indigenous populations have to undertake

are:

1. Screening by the Bank to identify whether Indigenous Peoples are present in, or have collective attachment to, the project area;

2. A social assessment by the borrower;

Hierogliph in Egypt



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3. A process of free, prior, and informed consultation with the affected Indigenous Peoples’ communities at each stage of the project, and particularly during project preparation, to fully identify their views and ascertain their broad community support for the project;

4. The preparation of an Indigenous Peoples Plan or an Indigenous Peoples Planning Framework;

5. Disclosure of the draft Indigenous Peoples Plan or draft Indigenous Peoples Planning Framework (all these steps are detailed in OP 4.10).

5.10 Participation / Consultation

The World Bank and African Development Bank integrate compulsory consultations of the

population in the EIA process. The consultation objectives and steps during the EA process

are:

• Review national law and practice relating to consultation and ensure compatibility with Bank requirements during the validation of environmental procedures and standards (identification);

• Identify stakeholder groups, secure proponent commitment on consultation program and agree on the extent and mode of consultation (screening or characterisation);

• Identify specific stakeholders, disclose relevant project information and determine stakeholder concerns to include them in the TOR (Scoping and agreement on TOR and schedule);

• Disclose information on study methods and findings, agree on mitigation measures with stakeholders and let stakeholders determine if their concerns are adequately addressed (environmental analysis and production of draft EA);

• Finalize mitigation plan and disclose to stakeholders (production of final EA reports);

• Inform the public about scheduling of potentially disruptive events, disclose results on environmental monitoring, and maintain effective complaints procedure (EMP implementation and monitoring phase);

• Assess effectiveness of consultation process and consult stakeholders for their assessment (final evaluation).

The major tool to plan and implement consultation is the Consultation Plan which should

propose a variety of consultation techniques as a function of the audience to reach.

Consultation and participation of the stakeholders of a project being compulsory for the

World Bank and the AfDB, it is recommended to integrate these issues in the NBI

procedures for regional power investments projects.




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5.11 Dams Policy

The World Bank OP 4.37 – Safety on Dams requires that experienced and competent

professionals design supervise the construction of dams, and that the borrower adopts and

implements dam safety measures through the project cycle. In addition, OP 4.37

recommends, where appropriate, that Bank staff discuss with the borrowers any measures

necessary to strengthen the institutional, legislative, and regulatory frameworks for dam

safety programs in those countries.

The Bank distinguishes between small (less than 15 m high) and large (more than 15 m)

dams. Dams between 10 and 15 m high are treated as large dams if they present special

design complexities (unusually large flood-handling requirement, location in a zone of high

seismicity, etc.). For large dams, the Bank requires (i) reviews by an independent panel of

experts of the investigation, design, and construction of the dam and the start of operations;

(ii) preparation and implementation of detailed plans; (iii) prequalification of bidders during

procurement and bid tendering; and (iv) periodic safety inspections of the dam after

completion.

5.12 International Waterways Policy

The Operational policy 7.50 –

Projects on International

Waterways of the World Bank

applies to (i) any water body that

forms a boundary between or

that flows through two or more

states; (ii) any other water body

part of the watershed of a

waterway described in (i); and

(iii) any bay, gulf, strait, or

channel bounded by two or more

states or, if within one state,

recognized as a necessary channel of communication between the open sea and other

states.

Nile River



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This policy applies to the following types of projects:

• Hydroelectric, irrigation, flood control, navigation, drainage, water and sewerage, industrial, and similar projects that involve the use or potential pollution of international waterways;

• Detailed design and engineering studies of above-mentioned projects.

Projects on international waterways may affect the relations between the World Bank and its

borrowers, and between riparian states. Therefore, the Bank attaches great importance to

the riparians making appropriate agreements or arrangements for the entire waterway, or

parts thereof, and stands ready to assist in this regard. In the absence of such agreements

or arrangements, the Bank requires, as a general rule, that the prospective borrower notifies

the other riparians of the project. The Policy lays down detailed procedures for the

notification requirement.

MO

DU

LE 3

MODULE 3Chapters 6 to 11



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6 SUSTAINABILITY IN REGIONAL POWER PROJECTS

It is known that a country’s energy development is closely linked to economic development.

Even if energy development is often seen as a consequence of the level of development of a

country, a new point of view is surfacing nowadays in the field of poverty reduction and

socio-economic development. Power projects are now seen as major motive forces of

socio-economic development. If socio-economic development is viewed through health,

education and revenue improvement, it becomes clear that such socio-economic

development is in key with efficient and clean forms of energy.

Moreover, to guarantee socio-economic development and poverty reduction, it is not

sufficient to develop any kind of energy. The most efficient and clean types of energy are to

be privileged because they render more possibilities for income generation and deteriorate

less public health and the environment.

This chapter discusses the inter-linkages between environmental sustainability, poverty

reduction strategies and socio-economic development activities within the context of regional

power investment projects. It also suggests how these can be best implemented to benefit

project host communities and environmental protection efforts in the Nile Basin countries.

6.1 Millennium Development Goals

In 2000, the United Nations Assembly established eight goals with their targets and

indicators known as the “Millennium Development Goals (MDGs)” to reduce extreme poverty

worldwide by 2015 using 1990 as the reference situation. The MDGs have made energy

supply a major factor in sustainable development. Energy services destined to consumption

(kitchen, lighting, heating, means of communication, etc.) are crucial to improve social

welfare, and the energy services needed for production purposes, transportation and

mobility, are indispensable for economic development. Power supply projects can contribute

in different ways to all of the eight MDG.

In 2006, the Forum of Energy Ministers of Africa (FEMA) published a special report entitled

“Energy and the Millennium Development Goals in Africa”. Considering the role of modern

forms of energy in achieving the MDGs in Africa, FEMA stated energy targets for African

countries. These five targets are:




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• “Doubling of the consumption of modern energy services including increased energy access for productive uses. The use of modern biomass technologies for industrial purposes to be explored.

• 50% of inhabitants in rural areas should use modern energy for cooking. Options should include improved cook stoves, which will result in both reduced air pollution and energy savings. Use of pressurized kerosene stoves and LPG stoves where the necessary support infrastructure is available can assist rural areas.

• 75% of the poor in urban and peri-urban should have access to modern energy services for basic needs.

• 75% of schools, clinics and community centres should have access to electricity as this would enhance their competitiveness.

• Motive power for productive uses should be made available in all rural areas”.

Linkages between energy and the eight MDGs have been established for Africa by FEMA.

They are summarized in Table 6.1.

Table 6.1 Matrix of Energy and the MDGs in Africa

1 Eradicate extreme poverty and hunger

Increased modern energy is essential to generate jobs, industrial activities, transportation, and modernised agriculture in Africa. Most African staple foods need processing, conserved and cooked, and these require modern energy for reasonable quality of life.

2 Achieve universal primary education

Good educational facilities need electricity for teaching aids and for homes of students and teachers. Many children, especially girls, do not attend school in order to satisfy family subsistence needs.

3 Promote gender equality and empower women

Lack of access to modern fuels and electricity affects women and so lead to gender inequality. Household activities mostly done by women could be made easier with modern energy and save time. Time saved could be used for more productive activities.

4 Reduce child mortality Diseases caused by poor quality water, and respiratory illness caused by the effects of indoor air pollution from traditional fuels and stoves, directly contribute to infant and child mortality

5 Improved maternal health Women are disproportionately affected by indoor air pollution and water- and food-borne illnesses. Lack of electricity in health clinics, poor illumination in night deliveries, and daily household chores all contribute to poor maternal health, especially in rural areas.

6 Combat HIV/AIDS, malaria and other diseases

Electricity for communication (radio and television) is needed to spread important public health information to combat deadly diseases. Also, electricity is needed for illumination, refrigeration, sterilization, etc for effective health services.



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7 Ensure environmental sustainability

Energy production, distribution and consumption in Africa has many adverse effects on the local, regional and global environment including indoor, and air pollution, and land degradation. Cleaner energy systems are needed to address environmental sustainability.

8 Develop a global partnership for development

The World Summit for Sustainable Development called for partnerships between public entities, development agencies, civil society and the private sector to support sustainable development, including the delivery of affordable, reliable and environmentally sustainable energy services.

Source: FEMA, 2006 (adapted from UNDP 2005)

The MDGs will be taken into account by the NBI EA framework for regional power

investment projects. This aspect will be implemented in the Environmental Assessment

procedure at different stages of the life cycle project. For instance, the scoping of a project

will identify to what extent it contributes or not to the achievement of the MDGs in the host

countries and communities.

6.2 Ecological aspects of power projects sustainability

The development of regional power projects such as an important hydroelectric project may

have various sources of impact on natural ecosystems. These impacts include changes in

annual flow and sedimentary regime downstream and upstream of the dam, modification to

terrestrial ecosystems and losses of biodiversity, emission of greenhouse gas, interference

with migration pattern of fish and reduction in flooding of riparian habitats downstream.

Finally, new hydroelectric projects can generate cumulative impacts when they are planned

within a basin including existing dams.

Hydroelectric projects require dams and reservoir which often flood large areas. The area of

influence of the projects extend from the upper limits of the watershed zone for the reservoir

to the downstream extremity, whether an estuary, a coast or an off-shore area.

The creation of a reservoir requires to flood valleys which are normally the habitat of a larger

number of animal and vegetal species than other physiographic units of the catchment.

Areas surrounding new reservoirs support habitats less attractive for wildlife than those lost

in the reservoir and thus represent some limits for wildlife species displaced by the flood.

Consequently, large impoundment can have dramatic effects for endangered species. Land

used by human populations relocated upstream of the flooded areas can exhacerbate the

degradation of habitats for wildlife and vegetation due to various activities like deforestation,




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irrigation and agriculture. In addition, the loss of vegetation in the upstream catchment can

increase the volume of sediments trapped in the reservoir, and thus affect water quality. The

sedimentary regime downstream of the reservoir can also be significantly modified by the

presence of the dam. All these adverse effects are difficult to mitigate.

However, hydropower development can facilitate other uses than power generation, such as

commercial or subsistence fisheries for riparian populations. Shallow reservoirs are

generally more productive for aquatic wildlife. This increase in productivity, enhanced by

flooding terrestrial ecosystems and the release of important quantities of nutrients, is

significant in the first years following the filling of the reservoir. Thereafter, these effects

gradually decrease. The fisheries potential of new reservoirs can significantly increase by

implementing multi-functional techniques such as clearing the vegetation in productive areas

of the reservoir.

Large reservoirs can contribute to greenhouse gas emissions due to the decomposition of

flooded vegetation. These emissions can be mitigated by the deforestation of the reservoir

before filling it, particularly areas where the vegetation is quite dense. By clearing the

vegetation of the future reservoir, this can force the displacement of animal populations

before the flooding, and thus minimise mortality by drowning during the filling of the

reservoir. In addition, the period of filling shall be considered as a mitigation measure that

could have positive effects on the rate of mortality of most vulnerable species.

The important changes in downstream hydrology of the river system have well known

impacts on riparian and aquatic ecosystems. Fish population may decline downstream in

consequence of change in flow regime (ex: lack of dissolved oxygen, sedimentation dynamic

or riparian vegetation, blocking migration of aquatic organisms). One good way to mitigate

the adverse effects of hydrological changes downstream of the dam is to maintain an

environmental flow. The experience shows that to be efficient, this measure should be

integrally part of the project planning. The environmental flow can vary in accordance with

the life cycle of wildlife populations (ex: spawning period of fish species) living downstream

of the dam or to ensure navigation for riparian human populations. Other measures, such as

the establishment of sills or fish ladders, can contribute to minimise the effects of

hydrological changes on the water level regime, bank erosion and fish migration.

Like any power plant, thermal power projects can change the biodiversity in the area of the

proposed project. Emissions from thermal plants, in particular coal-fired plants, can act as



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precursors of acid rains. These will alter aquatic ecosystems and damage forest

ecosystems. Taking big volumes of water from rivers and bays for plants cooling system can

induce mortality of aquatic organisms encroached in the cooling system. This can reduce the

populations of fishes and other aquatic organisms. Heated water discharges from the plants

in the rivers can raise water temperatures thereby reducing plant and fishes in the natural

water bodies. However, thermal power plants can also favour a significant rise in some fish

species adapted to the new temperatures. These species may compensate for the decline

and provide an important source of income. Anticipatory planning must identify these

changes and opportunities in the natural water resources in order for the local populations to

benefit from them.

Power transmission lines are typical linear projects. They have a long but narrow corridor of

impacts. A transmission line is usually only 12 to 25 meters wide. The sources of impact that

may affect the environment are development and clearing of the host sites and the clearing

required for installation of the power transmission line. The clearing anticipated for the

project will leave valuable firewood or lumber resources in its wake. These timber resources

represent a benefit of the project, which should be redistributed to the persons affected by

the project. Natural resources located under the line, substations and pylons may be lost

temporarily or permanently.

In addition, construction of the power line right-of-way may result in the loss and

fragmentation of habitat and vegetation along the line. These effects can be significant if

fragile natural areas, such as wetlands or natural forests are affected. Appropriate planning

and identification of the power transmission line route can allow to minimise the impacts on

fragile and sensitive components of the environment.

The control of vegetation in the right-of-way is often necessary to protect the power line.

Various techniques exist for controlling the growth of vegetation. From an environmental and

social point of view, selective clearing using mechanical means by local workers is most

preferable in NBI countries and should be evaluated in the framework of the project

environmental assessment. Aerial spraying of herbicides should be absolutely avoided

because it may result in contamination of surface waters and terrestrial food chains, as well

as elimination of desirable species and direct poisoning of wildlife which would be very

harmful for the environment, its resources and biodiversity.




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Box 6.1 Guiding principles for the ecological sustainability of power projects

1. Through the preparation of an hydropower project, and especially during the EIA, plan for multi-functional techniques such as clearing the vegetation of the reservoir in order to enhance fisheries development in potential productive areas, minimise greenhouse gas emissions, water quality degradation and wildlife mortality, and facilitate navigation in the reservoir.

2. Plan for an environmental flow to minimise changes in downstream hydrology of the river system, in accordance with the life cycle of wildlife populations and to ensure navigation for riparian human populations.

3. Plan for other measures to minimise the effects of hydrological changes on the water level regime, bank erosion and fish migration, such as the establishment of sills or fish ladders.

4. Implement integrated watershed management in the catchment area of the reservoir in order to minimise soil erosion.

5. For thermal power projects, plan to minimise atmospheric emissions in compliance with emissions and ambient air international standards.

6. Minimise heated water discharge by favouring closed cooling system circuits. 7. Anticipate changes in the natural water resources in order for the local population to

benefit from the new opportunities. 8. Plan and identify power transmission lines routes to minimise impacts on fragile,

sensitive and protected areas. 9. Plan for local populations to benefit from the cleared forest resources.

6.3 Social aspects of power projects sustainability

Power projects may reduce poverty and benefit the population. Access to electricity

promotes economic activities, eases domestic chores, improves health and education

services, etc. However, they may also have negative impacts which will deepen poverty if

those impacts are not identified and mitigated up front.

It is essential that the social benefits and impacts of power projects be considered in order to

contribute to the MDGs and achieve sustainable development. Guidelines shall be followed

for the integration of the socio-economic key issues in the unified standard EA framework for

the regional power investment project. These guidelines will ensure an inter-linkage between

environmental sustainability, poverty reduction and socio-economic development.

Several socio-economic key issues must be considered in the NBI EA framework in order to

ensure that the social impacts of the projects to be screened will be examined in depth

during the EA procedure. Key issues that must be considered are:

• Changes to the use of natural resources in the project area;

• Involuntary resettlement of population which may result in a worsening of poverty;



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• Indigenous communities;

• Gender issues;

• Public health issues;

• Physical cultural resources or cultural heritage;

• Consultation of the stakeholders.

6.3.1 Changes to the use of natural resources in the project area

The use of natural resources refers to all uses by local populations of water, vegetation,

wildlife and minerals which availability may be affected during the construction and operation

of a power project. In rural areas such as the Nile Basin, most of the population livelihoods

are land-based. Therefore, these people are very dependent on their biophysical

environment. Any change in the forests and the aquatic ecosystem may entail reduction of

the volume of available fishes, game, medicine plants, fruit-trees, etc. These are either used

for self-consumption or income generation. Their reduction is likely to cause impoverishment

of entire communities or the most vulnerable groups among them if programmes and

measures are not planned to maximize the potential benefits of the projects.

Failure to identify these impacts at an early stage of the project preparation makes it difficult

to find appropriate solutions afterwards. Therefore, changes in the access to natural

resources shall be identified at the screening stage of the project.

One way of doing so is to take advantage of rural traditional knowledge. Indeed, rural

populations in the NBI countries have been living over centuries in harmony with their

surroundings, gained a deep understanding of the complex way in which the components of

their environment are interconnected. Rural traditional knowledge has been and continues to

be accumulated through time spent living on the land for many generations. It encompasses

all aspects of the environment and sees humans as an intimate part of it. Traditional

knowledge is part of the collective memory of the communities. The holistic view of the

environment is generally based on fundamental values that support sustainability. In

addition, traditional knowledge includes qualitative information on animals, plants and other

natural phenomena. Traditional knowledge of local populations may help scientists

recognize and evaluate species and spaces at risk and therefore, save time and money by

guiding field work.




6-8

The changes produced by hydroelectric projects to the environment and resources used in

the area, also offer important economic opportunities for the local communities. A major

option is to incorporate affected people within irrigation schemes and develop reservoir

fisheries. Dams and reservoirs offer chances to develop irrigation which can generate

important increases in crop production and living standards of peasants in a sustainable

environment. Well-planning, implementing and managing of the irrigation facilities and,

giving priority to resettlers and downstream villagers in the irrigation schemes can produce

very important benefices for local populations.

When soils present no important limitation to agricultural production, it is possible to promote

local small irrigation projects around reservoirs. Manual or mechanical pumping from the

reservoir can allow the growth of a large variety of products (vegetable, fruit, cereal, others).

However, water availability (quantity, distance of transport) is subject to seasonal water level

variations of the reservoir. In addition, a detailed market study is generally required to ensure

that the increase in food production can be matched with a proper demand, on a local,

national and/or international level. It could also be important to introduce small scale

processing industries that could easily absorb the raw products, add value to these products

and create more job opportunities for the local population.

Gravity irrigation can generally be achieved downstream in proximity of dams. Large gravity

irrigated perimeters represent high investment cost but allow lower operational cost inj

comparison with pumping irrigation. Proper water management organizations need to be

created and technical support must be provided. Local small irrigation projects can also be

achieved downstream of dams, with manual or mechanical pumping. In every case,

appropriate enhancement measures such as improved seeds, fertilizers, tools and

equipments must be planned in the project.

Large dams also offer important opportunities to develop reservoir fisheries for project

affected people. In order to ensure that these people will become beneficiaries, it is essential

to plan for instance training programs and technical assistance for them and to grant them a

privileged access to the reservoir. In addition, it should be highlighted that hydroelectric

projects offer important opportunities to expand fishing activities for local communities on the

upstream of the dam and also downstream through the regulation of water levels. All these

opportunities and appropriate enhancement measures must be investigated on a

participatory basis and designed at an early stage of the project planning.



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Besides, it should be noticed that the lessons learned from the past have resulted in

improved hydroelectric projects. More and more, a sustainable development approach

guides the planning and management of dams and reservoirs. They are designed to serve a

wider range of development purposes.

Transmission lines can generally open up remote lands to human activities such as

settlement, agriculture, hunting, fishing, recreation, etc. These activities will inevitably entail

changes to the environment and resource use in the area. For instance, housing

development may occur in uninhabited areas, unexploited lands may be used for crop

production, hunting may reduce game in forests unexploited until then, etc. Therefore,

transmission lines will have an impact on the environment and resource use in the area of

the proposed project.

Indigenous peoples are distinct populations in that the land on which they live, and moreover

the natural resources on which they depend, are part of their identities and cultures. They

have very closed ties to forests, water, wildlife and natural resources. Therefore, if a

transmission line project involves land acquisition or, commercial development of natural

resources on land or territories that the indigenous peoples use or occupy, this project will

have adverse impacts on the affected indigenous community. In this case, there will be a

need for an Indigenous Peoples Plan.

Box 6.2 Guiding principles for the social sustainability of changes in the access to natural resources

1. Throughout the project planning and especially during the EIA, integrate the local communities’ knowledge concerning the area’s environment and its natural resources.

2. Consider potential losses in the access to natural resources as a social and economic risk for the population.

3. Perform an inventory and evaluate all the potential natural resources losses which will affect the income sources or means of livelihood of the population.

4. Consider the affected people as part of the displaced population even though they are not physically relocated.

5. Therefore, integrate these affected people in the resettlement plan in order to restore their livelihood and living standards.

6.3.2 Involuntary resettlement

Power projects require land acquisition and therefore, they entail displacement of population.

In many African countries, involuntary resettlement is one of the major issues of

hydroelectric projects. According to a former World Bank’s senior advisor for social policy




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and sociology, “Forced population displacement caused by dam construction is the single

most serious counter-developmental social consequence of water resource development”

(cited in IUCN and the World Bank, 1997, p.42).

The risks of impoverishment that involuntary resettlement may cause, are well known. They

include:

• The physical loss of homes and lands;

• The loss of productive assets;

• The loss of means of incomes and livelihood;

• The physical loss or access deprivation to basic community facilities and services (schools, clinics, wells, markets, etc.);

• Change in land use which affects the fertile and productive land for agriculture;

• The disruption of community networks and institutions, loss of cultural identity and loss of social fabric;

• The economic marginalization;

• Host-resettlers conflicts;

• Social exclusion;

• Impoverishment of the affected households;

• Marital conflict resulting to divorce and family instability.

Failure to identify these issues at an early stage of the project preparation makes it difficult to

find appropriate solutions. Therefore, resettlement issues shall be identified from the

screening and scoping stages of the project.

At the same time, objectives and programmes shall be defined to take advantage of the

economic opportunities generated by a power project, including for the local population. For

Cairo



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instance, early planning of training and building capacity programs will favour the

assignment of contracts to local enterprises and the recruitment of local manpower during

construction of the power plant and the subsidiary structures. Assessment of the population

training needs should be carried out on a participatory basis. This will enable the project to

design the appropriate training and other requirements for the target population.

Early formulation of a resettlement plan elaborated to fit the particular context of the project

is the recommended strategy to deal with displacement. The guiding principles figure in

Box 6.3.

Box 6.3 Guiding principles for the social sustainability of resettlement

1. Minimize displacement through an investigation of all feasible project alternatives. 2. Plan carefully the resettlement plan ensuring that the resources will be sufficient to

enable the displaced population to directly share the project benefits. The resettlement plan must represent a development opportunity for the resettlers.

3. Consult and involve the potentially displaced groups in the preparation and implementation of the resettlement plan. The technical design of the plan should integrate the options and solutions formulated by the affected persons. The involvement of project affected people (PAP) can be done by establishing working group with a representation from the affected communities and the respective authorities. The process should be transparent enough for all parties in order to avoid unnecessary confusions in due course.

4. Provide resettlers and host communities with sufficient compensation and assistance to guarantee that their livelihoods are improved or at least restored, to ensure that they are not put at a disadvantage. Special attention should be given to the vulnerable groups including women, orphans, elderly groups, etc.

5. Favour local businessess and local manpower in the resettlement process in order to induce economic development.

6. Develop an entitlement framework for the affected people and disseminate the information to the affected people. This will reduce the complaints about the eligibility and entitlements.

7. Put aside adequate provisions for compensation activities. There should be a reasonable and tolerable time from the time of decision to the time of effecting compensation to avoid loss of value due to inflation.

8. Put in place a practical institutional set up to administer the compensation process. 9. Allow for a close monitoring of the plan to identify any need to make changes during

implementation. Even detailed plans will require adjustments to adapt to changing circumstances among the resettlers and the host communities.

10. Make provision for a monitoring of the resettlement operations until the livelihood and living standards of the displaced population and host communities are restored.

11. Develop the monitoring indicators to track socio-economic changes taking place during and after project implementation. Therefore, the basic information / profile of the affected households should be collected before any development intervention.




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6.3.3 Indigenous communities

Identification of the project impacts on the potential changes in the environment and

resources used by the population may highlight the existence of indigenous communities

nearby the project area. Indigenous peoples are distinct populations in that the land on

which they live, and moreover the natural resources on which they depend, are part of their

identities and cultures. They have very close ties to forests, water, wildlife and natural

resources. Ensuring that a development project respects the human rights, economies and

culture of indigenous peoples contributes to poverty reduction and sustainable development.

In the NBI countries, indigenous peoples used to be nomadic. Most of them are still semi-

nomadic, living in camps in the forests. Though they trade with specific groups of

neighbouring farmers to get cultivated food, they are hunter-gatherers, living mostly on the

wild products of their environment. Forest-dwellers, indigenous peoples are frequently

among the most marginalized groups in their country. Their collective attachment to

ancestral territories and usage of the resources of these territories may not be recognized by

national or customary laws relative to ownership, occupancy and land use. However, their

access to these territories is essential to the sustainability of their cultures and livelihoods.

If a project involves land acquisition or, commercial development of natural resources on

land or territories that the indigenous peoples use or occupy, this project will have adverse

impacts on the affected indigenous communities.

Batwa women



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Involuntary resettlement of indigenous peoples or, involuntary restrictions on access to

territories that these people traditionally use or occupy, must be identified at a very early

stage of the project. Since physical relocation of indigenous peoples is very complex,

alternatives to the project design must be explored to avoid such relocation.

At the screening stage, it is essential to identify whether or not, indigenous people live in, or

have collective attachment, to the project area. For the purposes of planning the

development of any area of land, it should be assumed a priori that any forest may be

occupied or claimed by groups including indigenous communities. Even if there are no

visible signs of occupation, the land may be occupied intermittently and exploited by

communities whose lifestyles depend on frequent movements.

In exceptional circumstances when project designs may not be modified, the project

proponents must prepare an Indigenous Peoples Plan. This process will be detailed in

chapter 7.

Box 6.4 Guiding principles of the social sustainability for indigenous communities

1. At the screening stage of project preparation, identify whether or not, indigenous people live in, or have collective attachment, to the project area.

2. Based on the screening, undertake a social assessment to evaluate the projects potential impacts on the indigenous communities.

3. Examine project alternative designs to avoid any involuntary restrictions on access to territories that indigenous people traditionally used or occupied.

4. If alternatives can not totally avoid involuntary restrictions or resettlement, engage in free, prior and informed consultation with indigenous communities during social assessment.

5. If the project receives a broad support by the affected indigenous communities, develop with them an Indigenous Peoples Plan. This plan will set out the measures that will ensure that the affected people receive culturally appropriate benefits from the project and get compensations for the adverse impacts which can not be avoided.

6.3.4 Gender issues

The linkage between gender, energy, poverty reduction and sustainable development has

been well demonstrated. The following document provides detailed information on the

subject: UNDP, Gender and Energy for a sustainable development: a toolkit and

resource guide, New York, 2004, 85 pages.




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Access to affordable energy services is an essential condition to achieve poverty reduction

and socioeconomic development. Approximately 2 billion people throughout the world have

no access to electricity. About the same number depend on traditional fuels, mainly wood

and wood coal, for cooking and heating.

Grid-based electrical power does not reach many rural areas in the Nile Basin Initiative

countries, nor is there adequate distribution of gas or other efficient domestic fuels. Women

are more affected than men by limited access to energy. Because of their traditional

responsibilities for providing household energy by collecting fuel, women and girls would

benefit the most from access of the households to improved energy services.

Literacy rates and school enrolment

levels are very different for men and

women in the NBI countries. The time and

physical effort spent by women and girls

in gathering fuel (and carrying water)

obviously limits their ability to enrol in

school and engage in income-generating

activities. Much of women’s time is

consumed by chores related to producing

and cooking food without clean-burning

fuels and energy efficient appliances.

In addition to the time and physical

burdens involved in gathering wood or other traditional fuel, women endure long-term

physical harm from tiring work without sufficient rest time. It has also been demonstrated that

using biomass for cooking exposes women to health hazards due to cooking over poorly

ventilated indoor fires.

Reduced chores for women and increased access to non-polluting power for household and

productive activities can have remarkable effects on women’s levels of health,

empowerment, education, literacy, economic development, and involvement in community

activities. These improvements in women’s lives can have significant beneficial impacts to

reduce poverty of these women, their families and communities.

African women



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Energy policies relating to fuel choices, electricity generating capacity, and energy delivery

systems have impacts on development that are not generally analysed in their gender

dimensions. Men and women may be affected differently by energy policies. For instance,

the distribution of electricity without paying attention to the provision of modern cooking fuels

or appliances may result in rural electrification that in fact increases the hardships of women:

the working day is prolonged while traditional cooking fuel collecting and use remain

unchanged. Attention to these kind of differing needs is required to achieve effective and

equitable distribution of energy services.

Assessing the impacts of a power project on women involves an approach based on users’

needs: “Energy planning is often focused on increasing supplies of fuel or electricity,

especially for industrial and urban uses, with little attention to the energy demand

characteristics of women, especially those in underserved rural areas. Rural energy needs

for domestic, agricultural, and small-scale informal production activities, where women

predominate, are given low priority. As a starting point for gender-sensitive energy planning,

it is important to identify the energy services of primary importance to women and to

consider options for providing those services. Approaches that favour demand-side

considerations rather than supply-side energy targets are more likely to positively reflect

women’s actual needs. Overall, in order to reach the MDGs, energy should be considered

within the context of community life, and energy policies and projects should be integrated in

a holistic way with other programmes related to health, education, agriculture, and job

creation” (UNDP, 2004, p.9-10).

Moreover, gender variations shall be a core concern in social analysis throughout the

environmental impact assessment. Social analysis will focus on the fact that communities

are composed of diverse groups and that gender is a variable likely to be environmentally

significant. Since women and men have different social status and distinct needs, play

different economic roles and, have diverse accesses and uses of resources, a given power

project will have different impacts on men and women.

In accordance with the World Bank Social Analysis Sourcebook (2003), social diversity and

gender issues will be incorporated in the environmental impact assessment’s Terms of

Reference. Gender analysis will focus on gathering gender-disaggregated information and

data on men’s and women’s status, roles, activities, needs, constraints, opportunities and

relationships.




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Box 6.5 Guiding principles to link gender equity and social sustainability

1. Take into account demand-side considerations as well as supply-side energy targets while assessing a power project impact.

2. Incorporate social diversity and gender issues in the EIA Terms of references. 3. Analyse social dimensions of a project impact using gender-disaggregated information

and data.

6.3.5 Public health issues

Section 6.1 has highlighted the links between a better access to electricity and the

improvement of health conditions and the achievement of the MDGs through reduction of

child mortality, improvement of maternal health, fight against HIV/AIDS, malaria and other

diseases. Though power projects have the potential to reduce poverty, their operation may

also present health hazards. The typical health impacts of power projects are reminded here:

• Hydroelectric projects: creation of a reservoir and associated water management structures may increase water-borne or water-related diseases as a result of standing water providing habitat for mosquitoes and other disease-carrying animals: malaria, schistosomiasis, onchocerciasis, encephalitis, etc.

• Thermal power projects: Large power plants can be noisy, inducing long term health problems to the population living in the vicinity of the plant.

• Electric power transmission systems: Low-slung lines near human activity raise the risk for electrocution. Electric power transmission lines generate electromagnetic fields (EMFs). The strength of EMF decreases with distance from transmission lines. Though there is no scientific consensus, the evidence suggests that health hazard may exist in the EMF of high-voltage transmission lines.

Besides those health impacts which might occur during the operation phase of the projects,

expansion of VIH/AIDS during construction of the infrastructures is a major health concern.

Power plant construction, especially dams, usually takes several years to build. It may

extend from two to ten years, sometimes even longer. This involves the influx of several

thousand workers for building the plant. Local workers tend to be only a small minority of the

labour force since they seldom have the skills required to be hired. The desire to build the

structures as fast as possible will often mean that cheap but well-trained workers will be

hired from other regions or other countries. These workers are usually either single or living

on the construction sites without their families. They generally receive cash wages on a

regular basis and are often much wealthier than the local populations of the area. This

situation is likely to promote the development of prostitution. This is a high potential for

expansion of sexually transmitted diseases (STDs) including HIV/AIDS.



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Moreover, most power projects include transmission lines. It is well known that transportation

corridor projects in Africa are a predominant route for the spread of HIV/AIDS on the

continent. The construction of a transmission system entails the use of a team of workers

which moves with the progression of the construction, all along the corridor of the line for

hundreds of kilometres. This situation represents an ideal pattern for the transmission of

HIV/AIDS in the remote rural areas crossed by the transmission line.

Short and long term effects of a project on public health have an important impact on poverty

and sustainable development. Considering the potential health hazards of power projects

notably during the construction phase, this issue must be considered at the initial stage of

preparation of the project. The scoping of the project will determine if a Health Impact

Assessment (HIA) is required.

According to the World Health

Organization (WHO), “When

HIA is undertaken early in the

development process of a

proposal it can be used as a

key tool for sustainable

development. HIA allows the

identification and prevention of

possible health (and other)

impacts right from the start in

policy and decision-making.

This enables health objectives

to be considered at par with socio-economic and environmental objectives, bringing

sustainable development closer. Another feature of HIA is its possible combination with other

impact assessment methods. This integration allows proposals to be assessed from a

sustainable development perspective including: health; education; employment; business

success; safety and security; culture, leisure and recreation; and environment. Drawing on

the wider determinants of health, and working across different sectors, HIA has the ability to

link well with the sustainability agenda” (www.who.int/hia/about/why/en/index1.html).

Aquatic weeds in Nile River




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Box 6.6 Guiding principles to link health and social sustainability

1. Consider potential health impact of a project at the initial stage of its preparation notably transmission of HIV/AIDS during construction of all type of power projects and, water-borne or water-related diseases associated with reservoirs of hydroelectric projects.

2. Transportation corridor projects being a predominant route for the spread of HIV/AIDS in Africa pay a special attention to the health risks entailed by the construction of power transmission lines.

3. At the scoping stage, establish if a Health Impact Assessment is required for the project as part of the EIA

6.3.6 Physical cultural resources

Physical cultural resources are important as sources of precious historical and scientific

information and, as resources for economic and social development. They are also basic

elements of people's cultural identity; they keep alive ties of the societies to their past and

their cultural traditions. Therefore, their preservation for future generations is essential and

as such, it is part of sustainable development.

The World Bank defines physical cultural resources (or cultural heritage) as follows:

“movable or immovable objects, sites, structures, groups of structures, an natural features

and landscapes that have archaeological, paleontological, historical, architectural, religious,

aesthetic, or other cultural significance. […] Their cultural interest may be at the local,

provincial or national level, or within the international community” (World Bank, OP 4.11,

p.1).

More and more physical cultural

sites are being endangered by

the need for development and by

project activities. The loss of

such resources is irreversible,

but it is generally avoidable.

Potential impacts of a project on

physical cultural resources can

be identified and, avoided or

mitigated thru an environmental

assessment process.

Nile River in Egypt



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Power projects located in the vicinity of physical cultural sites may endanger similar sites.

For instance, a reservoir may perhaps inundate sites of important cultural significance.

Excavation and earth moving during construction of a power plant might destroy

archaeological artefacts. Air emission sources (sulphur dioxide, oxides of nitrogen, carbon

monoxide and particulates) from the combustion of fuels of thermal power projects may

possibly have long term negative impacts on constructions of high historical value.

Therefore, impacts of a power project on physical cultural resources shall be identified

during the EA procedure (see chapter 7).

Box 6.7 Guiding principles to link physical cultural resources and social sustainability

1. Consider potential impacts of a project on physical cultural resources at the initial stage of its preparation.

2. Incorporate physical cultural resources issues in the EIA Terms of references.

6.3.7 Participation and consultation of the stakeholders

While planning and implementing projects, affected people have often been viewed as the

target of poverty reduction efforts. Nowadays, a new approach called Community Driven

Development (CDD) is adopted by major funding agencies. This approach treats poor

people and their institutions as stakeholders in the search for sustainable solutions to

development challenges. CDD is an approach that gives power to community groups and

local governments for planning decisions and investing resources to reduce poverty. The

principles of CDD include consultation and participation of the population in the planning,

implementation and monitoring of projects.

Understanding the social implications of projects is critical in ensuring that the proposed

project contributes to equitable and sustainable development. In the EIA, social analysis

aims to identify the social dimensions of projects including the different stakeholder

perspectives and priorities. Therefore, social analysis needs to establish participatory

processes with the stakeholders, incorporate their views in the assessment and take into

account their options in the design of the project.

Public consultation in the EA process is well documented. Since 1989, the World Bank

requires that affected groups and NGOs be consulted as part of the environmental

assessment of projects particularly those classified as Category A. This requirement is




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based on the important links existing between public consultation and project social

sustainability in host communities. Consultation leads to a better understanding of public

concerns and more acceptable decisions by projects proponents.

Consultations serve to give project information to the public and affected communities. They

also serve to incorporate stakeholders’ opinion and needs in the project design including

their fears and expectations.

The benefits of public consultation are numerous. During EA process, the consultations

serve, among other things, to identify:

• Socio-economic profile of the affected communities;

• major issues to be resolved;

• specific concerns notably about land acquisition and resettlement;

• adverse social impacts that may entail a decline in the living standards of the population;

• appropriate mitigation measures to protect the community’s livelihoods;

• additional measures to maximize benefits to the project host communities;

• stakeholders’ institutions and their potential responsibilities during project preparation and implementation.

Public consultation and participation are commonly accepted as important components of

the decision making process regarding large dam projects. They are required to generate

appropriate and sufficient information for impact assessment, but also, they provide insights

on the means by which public support for a project can be mobilised.

Yet, public consultation is essential for all types of power projects. For instance, the corridor

selection process for an electric power transmission system can include key stages where

the project proponent invites and encourages inputs from decision-making authorities,

representative groups and from members of the community. Community workshops will

provide a valuable opportunity to listen to community concerns and to incorporate

suggestions into the project planning process. Furthermore, the participants may provide

valuable local knowledge about significant sites located within the corridors. Features may

include:

• areas of high agricultural/ horticultural value;

• sites of indigenous heritage significance;



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• features of environmental significance;

• recreational areas;

• future development proposals.

The constraints and sites that attendees identify can be GIS mapped and presented in a

second workshop. They are then analysed and the corridor options are refined in light of this

feedback. Following the workshops, a series of meetings can be held with affected

landowners or occupants in the transmission corridor.

In any case, the results of

the consultations shall be

reflected in the design of

the project. Box 6.8 gives

the basic principles to

ensure that public

consultation is integrated

to the EA process to

ensure social

sustainability of power

projects. Appendix 3

provides details on the

consultation objectives at

each step of the EA process, the designing and implementation of a public consultation plan

and, the techniques for public consultation.

Cruise on mid-Nile River




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Box 6.8 Guiding principles to link public consultation and social sustainability

1. Identify stakeholders groups 2. Provide effective and timely disclosure of project information to the stakeholders 3. Ensure their involvement starting from the scoping stage of the EA 4. Identify their concerns and include them in the Terms of Reference of the EIA 5. Ensure that expertise for an effective consultation is provided 6. During the EIA, identify mitigation and additional required measures with the

stakeholders 7. Ensure that the concerns and proposals of the stakeholders are reflected in the project

design 8. Disclose the results of the EIA to the stakeholders 9. During project implementation, inform the stakeholders about the Environmental

Management Plan, ensure their involvement in the project’s monitoring and, maintain a complaints and grievance procedure

10. Throughout the life cycle project, keep a record of all consultations including dates, names, topics of discussion and outcomes.

6.4 Economic aspects of power projects sustainability

As discussed in the previous sections, power projects can be closely linked to economic

development if proper impact mitigation measures are elaborated, if comprehensive

resettlement plans are established and if local development plans are included in the project.

In such cases, power projects can have a positive economic influence by increasing labour

productivity, creating jobs, creating more added value to local production, converting

economic activities, converting land use, diversifying economic activities, increasing food

production and increasing economic activity. Moreover, health improvement, better

education, time saved, better living standards, better transportation, better access to natural

resources, are also contributing factors to economic development.

Ferry on Nile River



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In projects where no proper attention is paid to the economic impacts and their mitigation,

negative impacts such as a decrease in food production, impoverishment, inflation,

fluctuation in currency, decrease of economic activity, job losses and concentration of

economic activity can be observed, thus, the importance of analysing the economic impact

of a project up front.

Power projects entail various impact sources such as involuntary resettlement, changes in

the environment, alterations in resource use in the area, disturbances to indigenous

communities, modifications in gender issues and changes in public health. All of these

impact sources can generate positive and/or negative economic impacts on the persons

affected by the project (PAP).

In the case of involuntary resettlement, power projects can induce the loss of productive

assets, the loss of means of income and the loss of livelihood. In order to minimize these

impacts, projects must identify proper mitigation and development measures that can ensure

local economic development. Proper resettlement plans accompanied by comprehensive

development plans can become efficient tools in economic development in the resettlement

areas. These plans must identify the pertinent development opportunities according to the

PAP’s socio-economic characteristics and economic development needs. A good

comprehension of the PAP’s development needs will become a solid base to economic

development in their new environment.

When hydroelectric power projects and their reservoirs change the environment and modify

the resources used in the area, they can cause significant losses in pasture and agricultural

land in the reservoir area and cause a decrease in fish captures downstream. On the other

hand, these projects offer great economic opportunities for the local communities. In fact,

presence of regulated water levels downstream and the newly created reservoirs can

develop new fishing opportunities as well as develop irrigation schemes. These new

economic development opportunities cannot fully contribute to economic growth if they are

not elaborated on the basis of socioeconomic baseline studies and if they are not

accompanied by extensive training programs for the beneficiaries. The development

programs must also take in consideration the indigenous communities that may have

different development needs than the majority of the PAPs.

Regarding gender issues associated with power projects, it is well known that affordable

energy supply is an essential factor in poverty reduction and socio-economic development.




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Because of women’s traditional responsibilities in their homes, improved access to energy

services can alleviate women’s workload usually dedicated to collecting fuel. This chore

reduction, as well as the new access to non-polluting power for household and productive

activities, can have beneficial effects on women’s levels of health, empowerment, education

and literacy. These opportunities can be transformed in sustainable economic development

if the power projects identify appropriate gender oriented mitigation measures.

In terms of public health, power projects, through their resettlement and development plans,

can improve the general public health level, through better health services, better disease

prevention. Good health is directly correlated with better labour productivity, which in turn

contributes to economic development.

Moreover, in order to maximise a project’s influence on local economic development, the

project’s benefits must not only be shared with the project beneficiaries but also with the

persons directly affected by the project. Therefore, power projects will need to pay particular

attention to the persons they directly affect by financing local energy distribution to them

through the project’s economic rent2 for example.

Box 6.9 Guiding principles to take into account economic aspects of projects sustainability

1. Analyze the economic impacts of a specific power project up front. 2. Mitigate the negative economic impacts in order to avoid situations such as decrease

in food production, impoverishment, inflation, fluctuation in currency, decrease of economic activity, job losses and concentration of economic activity.

3. Enhance the positive economic impacts to attain increases in labour productivity, jobs creation, more added value to local production, conversion of economic activities, conversion of land use, diversification of economic activities, increases in food production and increases in economic activity.

4. Include local development plans as important parts of the project power. 5. Finance local energy distribution to the communities directly affected by the power

project through the project’s economic rent for instance.

2 The economic rent is the revenue surplus related to a production factor in addition to what is required to

induce this factor’s participation in the production process. The value of the economic rent is measured by the difference in a product’s sale price and its economic cost of production, including the normal return on capital. Economic rents exist in hydroelectric dam projects because these projects use natural resources and because there usually is a gap between world and cost prices for basic products such as electricity and petroleum for example.



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6.5 Positive impacts of regional power projects on local communities

As demonstrated previously in this Chapter, power projects can have many positive impacts

on local communities. These impacts include:

• Economic opportunities for peasants with the development of irrigation schemes and significant increases in crop production and living standards;

• Economic and health opportunities for rural populations with the development of reservoir fisheries which in addition to an increase of incomes, will allow an intake of proteins and a diversity of diet;

• Enhancement of living standards thru comprehensive resettlement and local development plans including social infrastructures, upgrading of housing, training, etc.;

• Economic development thru Increases in labour productivity, job creation, added value to local production, diversification of economic activities, rise of food production, etc.

Moreover, one of the most important positive impacts on local communities is rural

electrification. Power projects offer important opportunities to bring affordable energy

services to local communities. Access to these services is an essential condition to achieve

poverty reduction and socioeconomic development of these communities. Therefore,

affordable local energy services must be planned as part of the power project during its

preparation. This can be done by taking into account demand-side considerations as well as

supply-side energy targets while assessing a power project impact assessment. Demand-

side considerations will involve the construction of transforming terminals and distribution

lines which must be planned and budgeted in the project costs.

Box 6.10 Guiding principles to improve positive impacts of power projects on local communities

1. Develop irrigation schemes to increase crop production and living standards. 2. Develop fishing reservoirs which will increase incomes, allow an intake of proteins

and a diversity of diet. 3. Develop comprehensive resettlement and local development plans to improve social

infrastructures, upgrade of housing and, training of local communities’ members. 4. Take into account demand-side considerations as well as supply-side energy targets

while assessing a power project impact assessment. 5. Plan and budget in the project costs, construction of transforming terminals and

distribution lines for the villages affected by the project.



7-1

7 ENVIRONMENTAL ASSESSMENT PROCESS FOR REGIONAL POWER PROJECTS

Chapter 6 has presented the guiding principles to achieve sustainable development through

regional power projects. In order to integrate these guiding principles in the projects’ cycle

phases, this chapter defines the environmental assessment process.

This chapter comprises nine sections. The first three sections concern: 7.1 the justification of

the EA framework; 7.2 the environmental assessment principles; 7.3 the general process for

regional power projects. These sections are followed by five technical sections linked to the

project cycle phases: 7.4 identification; 7.5 preparation; 7.6 appraisal and approval;

7.7 implementation and supervision and; 7.8 post evaluation. Sections 7.4 to 7.8 are the

core of this chapter. They provide detailed information on the steps to follow, the activities to

conduct and the administrative procedures to respect during EA process. Finally, section

7.9 identifies institutional responsibilities for EA process implementation.

7.1 Justification of the EA framework for regional power projects

As presented in the above section 4, the level of details of the environmental and social

impact assessment procedures and frameworks of the NBI countries varies significantly from

one to another. Some countries such as Egypt and Ethiopia do have comprehensive EIA

regulations and guidelines, whereas in some other countries (Burundi and Rwanda for

example), EIA is essentially based on general principles stated by the Law. Even DRC does

not have yet an environmental framework law, even though it is currently in preparation. In

addition, procedures of some countries provide for comprehensive EIAs in the case of major

projects and simplified EIAs for small projects (such as maintenance of existing facilities).

Key social issues, such as resettlement, indigenous communities, gender and cultural

heritage, are not always covered by EIA frameworks of each country. Considering the vision

of the NBI Vision which is to achieve sustainable socio-economic development through the

equitable utilization of, and benefit from, the Nile basin water resources, the key social

issues shall be properly taken into account while evaluating specific regional power projects

in the NBI countries.

No specific framework for power projects exists in the NBI countries. However, in Ethiopia

and Egypt for example, there are some EIA guidelines for power projects that can be

considered at the same level than international best practices.




7-2

In general, EA frameworks of funding agencies, especially World Bank and European Union,

are much more detailed and restricting than frameworks of NBI countries. Apart from general

EIA guidelines, the funding agencies do not have also specific EIA frameworks for regional

power projects.

The International Hydropower Association (IHA) has a set of comprehensive sustainability

guidelines for hydropower projects, for new and existing power facilities. These guidelines

promote greater consideration of environment, social, and economic sustainability in the

assessment of new energy supply options, new hydro projects and the management and

operation of existing hydropower facilities. The guidelines provide guidance for aspects

related to the evaluation of alternative energy options, alternative hydropower options,

environmental assessment of hydropower projects, safety, management of existing

hydropower schemes, legal and institutional arrangements and environmental management

systems. The IHA guidelines provide useful information on the environmental, social and

economic aspects of sustainability.

In addition, the Southern African Power Pool (SAPP, 2001) has developed EIA Guidelines

for thermal power plants in the SAPP Region. The objective of these Guidelines is to provide

procedures for the systematic performance of consistent, cost-effective, responsive, and

approvable EIAs specific to thermal power projects in SAPP member countries.

Moreover, numerous EIA guidelines exist for the EIA of power transmission lines, such as

Hydro-Quebec’s approach, tools and methods covering the whole project cycle of

transmission lines and substations from feasibility to decommissioning, the EIA guidelines

for transmission lines within the Southern African Power Pool Region (1999), etc.

As presented in the above Section 3, numerous power projects involving more than one

country (transboundary projects) are planned for the near future in the NBI countries.

Indeed, the mission of the NBI and the RPTP in particular is to develop regional power trade

and markets among the NBOI countries. A harmonised EA framework will be required to

assess the environmental and social impacts of these projects according to the international

practices and to the NBI countries’ policies and regulations.

Considering the diversity of EA procedures and frameworks of the NBI countries, funding

agencies and international initiatives, as well as the potential transboundary power projects

in the pipeline, it is therefore justified to develop a comprehensive standard framework of



7-3

integrated environmental and social impact assessment applicable to all NBI countries in the

frame of the NBI.

The main objective of the comprehensive EA framework which integrates environmental and

social issues of power projects is to contribute to the vision of the NBI, which is to achieve

sustainable socio-economic development through the equitable utilization of, and benefit

from, the Nile basin water resources. Another key objective is to plan and implement the

regional power projects according to best practices as far as sustainable development is

concerned.

7.2 Environmental assessment principles

Environmental assessment (EA) comprises a number of processes aiming to incorporate the

environment into the planning of operations and development of projects, programs plans or

policies. It is a systematic process for evaluating and documenting the possibilities,

capacities and functions of resources and of natural and human systems in order to facilitate

the planning of sustainable development and the decision process in general, as well as

forecasting and managing negative impacts and the consequences of development

proposals (André et al., 2004).

According to World Bank’s OP 4.01, the level, depth, and type of analysis of the EA process

depend on the nature, scale, and potential environmental impact of the proposed project. EA

consists:

Waterfalls on the Blue Nile




7-4

• To evaluate a project’s potential environmental risks and impacts in its area of influence;

• To examine project alternatives;

• To identify ways of improving project selection, location, planning, design, and implementation by preventing, minimizing, mitigating, or compensating for adverse environmental impacts and enhancing positive impacts;

• To mitigate and manage adverse environmental impacts throughout project implementation. Preventive measures rather than mitigation or compensatory measures are more favourable.

For OP 4.01, EA considers (i) the natural environment (air, water and land), (ii) human health

and safety, (iii) social aspects (involuntary resettlement, indigenous peoples, and physical

cultural resources), and (iii) transboundary and global environmental aspects (climate

change, ozone-depleting substances, pollution of international waters, and adverse impacts

on biodiversity). EA considers natural and social aspects in an integrated way. It also takes

into account the variations in project and country conditions, the findings of country

environmental studies, national environmental action plans, the country’s overall policy

framework, national legislation, and institutional capabilities related to the environment and

social aspects, and obligations of the country under relevant international environmental

treaties and agreements. The Bank does not finance project activities that would contravene

such country obligations. EA is initiated as early as possible in project planning and

integrated closely with the economic, financial, institutional, social, and technical analyses of

a proposed project.

Environmental assessment processes or instruments include:

• Environmental studies and strategies, in the broad context of environmental action plans;

• Strategic environmental assessment, in the context of programs, plans and policies, sectoral and regional investments;

• Life cycle assessment, in order to consider the energy and materials used and discharged in the environment from a design to the disposal of a product;

• Environmental impact assessment, for projects and sometimes programs and activity plans;

• Environmental audit, in order to evaluate the compliance of operations with the rules, regulations, programs or policies of an organisation or a State.

An environmental impact assessment (EIA) is a “procedure to examine the environmental

consequences, both beneficial and adverse, of a proposed development project and to



7-5

ensure that these consequences are taken into account in project design” (André et al.,

2004). An EIA, as proposed in this framework, takes into account impacts on both the

biophysical and human environment. It includes a whole range of specialised assessments

dealing with environmental, social, economic and health impacts, and risk analysis. It studies

the impacts of projects taken individually as well as the cumulative effects induced by the

combination of several projects and activities in time and space.

An environmental impact can be defined as the effect, for a period of time and within a

specific space, of a human activity on an environmental or human component, compared

with the “without project” situation. Figure 7.1 illustrates the notion of magnitude of an

environmental impact, which indicates the change in the value of a component of the

environment within which a project is located.

Figure 7.1 Illustration of an environmental impact

Indicator

With project

Impact magnitude

Without project

Implementation

Time Source: André et al., 2004

The general EIA process that is applied by most funding agencies and national

environmental agencies is illustrated on Figure 7.2. The EIA process begins when the

project proponent decides to undertake a project by presenting a project notice describing

the project to the authorities in charge of EIA. This first step is followed by the preliminary

screening in order to determine the importance of the environmental impact assessment

(EIA) study to conduct, i.e. simplified, detailed, management plan, etc. As previously

mentioned, World Bank OP 4.01 provides project categories (A, B or C) for which the level of

EIA is proportional to the anticipated importance of the project impacts.

If the preliminary screening determines that an EIA is required, the scoping is the next step

to undertake in order to define the scope of the EIA by preparing the terms of reference or




7-6

guidelines of the study. Preliminary consultations of stakeholders can be required to conduct

the scoping of the EIA. The results of the scoping will generally include the main

environmental issues raised by the project, the timing and extent of analysis required, the

sources of relevant expertise and suggestions for mitigation measures.

The EIA studies (impact assessment, resettlement plan, environmental and social

management plan, etc.) are normally the responsibility of the project proponent who usually

calls for expertise to carry out the study according to international standards and

requirements of the funding agency. Additional public consultations shall be carried out

during the study. To conduct the EIA studies, the expertise can often rely on general sectoral

guidelines that must be adapted to the project background and environmental context.

Once the EIA studies are completed, the project proponent submits it to the relevant

authorities and will then be subjected to internal and if necessary, external review. The

internal review consists in checking the compliance between the terms of reference and the

EIA studies reports. The preparation of a technical analysis report is generally the result of

the internal review step. The external review is to get an impartial point of view of the

particular interests of various parties involved in the project, such as the persons affected by

the project (further public consultations).

The decision to go ahead with the proposed project is based on the internal and external

review reports and the conclusions of the EIA report conclusions. Finally, environmental

monitoring and follow-up measures normally recommended by the EIA study shall be

carried out during the whole construction and operation phases of the project.



7-7

Figure 7.2 General EIA Process




7-8

7.3 General EA process for regional power projects

The general process of the EA framework for regional power projects is illustrated on

Figure 7.3. This process follows the general EIA process that is applied by most funding

agencies and national environmental agencies explained in the previous section. In addition,

it integrates additional aspects such as the implementation of social sustainability, life cycle

assessment (LCA) and access to the Clean Development Mechanism (CDM). Additional

diagrams are provided in chapters 9 and 10 dealing with LCA and CDM respectively. The

implementation of this EA process will require a Regional EA Working Group (REAWG)

coordinated by an existing institution of the NBI. The proposed composition and

responsibilities of the REAWG are further discussed in Section 7.9 below dealing with the

institutional responsibilities of the EA process implementation.

Regional power projects include any hydropower,

thermal, geothermal and transmission lines projects

affecting or providing benefits to at least two NBI

countries, including projects likely to cause

significant adverse transboundary impacts, and/or

significant adverse impacts on international

heritage sites.

According to the Convention on Environmental Impact

Assessment in a Transboundary Context (called the

Espoo EIA Convention of 1991 prepared under the

auspices of the United Nations Economic Commission

for Europe), transboundary impacts can be defined as

any impact, not exclusively of a global nature (such as

climate change, ozone depletion, biodiversity, etc.),

within an area under the jurisdiction of a country caused

by a proposed activity which the physical origin is

situated wholly or in part within the area under the

jurisdiction of another country.

For the application of the Espoo (EIA) Convention, a proposed activity is likely to cause

significant adverse transboundary impacts by virtue of one or more of the following criteria:

Waterfalls on Nile River

Project notice

Environmental pre-screening

National EA process (NEAP)

Identification of documents to prepare

Non-objection of the Funding Agency

Non-objection of the Funding Agency

Deliverance of the environmental permit (if NEAP triggered)

Not triggered Triggered

REAP triggered

REAP screening

Cat. A & B1 projectsrequiring an EA and ESMP

Cat. B2 projectsrequiring an ESMP

Preparation of TOR for required documents

Approval of the scoping

Preparationof the studies

Publicconsultations

Reviewof compliance

Preparationof the ESMP

Internal review of the studies

Disclosure of the studies and public consultation (external review)

Reviewof compliance

Completionof the studies

ESMP implementationreporting

Control of the ESMP implementation

Supervision

Consultation of affected groups and local NGOs

REAP triggeredREAP not triggered REAP not triggered

Category BNo funding Category A

Not triggered Triggered

Regional EA process (REAP)

Environmental and social audit

Review of the audit

If objection

Not complying Not complying

PP

NEA

NEA NEA

REAWG

REAWG

FA

PP - NEA

NEA

PP

PP-NEATRC - FA

PPPP

NEA

PP

NEA

PP

Recommendationfor decision

NEA

Review of the process and decision

REAWGAppeal in case of disputed decision

PP - Nile TAC

FANEA PP

NEA

REAWG

PP

NEA

FA

Projectimplementation

Projectimplementation

NEAP studies

1

05_16005_Fig 7-3_cm_pc.ai

Environmental Assessment Process for Regional Power Investment Projects FIGURE 7.3

STEP 1

STEP 2

STEP 3

STEP 4

STEP 5

STEP 7

STEP 8

Any hydropower, thermal and geothermal power, and power transmission lines project in a NBI country.

PP Project proponent NEA National environmental agencyREAWG Regional EA Working GroupFA Funding agency TRC Technical review committeeNile TAC Nile technical advisory committeeESMP Environmental and social management plan

ABBREVIATIONSAU

DIT

ING

ESM

P IM

PLEM

ENTA

TIO

NR

EVIE

W

STEP 6

DEC

ISIO

N-M

AK

ING

IMPA

CT

ASS

ESSM

ENT

SCO

PIN

GSC

REE

NIN

GPR

E-SC

REE

NIN

G

1



7-11

(a) Size: proposed activities which are large for the type of the activity;

(b) Location: proposed activities which are located in or close to an area of special

environmental sensitivity or importance (such as wetlands designated under the Ramsar

Convention, national parks, natural reserves, sites of special scientific interest, or sites of

archaeological, cultural or historical importance); also, proposed activities in locations where

they would likely have significant effects on the population;

(c) Effects: proposed activities with particularly complex and potentially adverse effects,

including those giving rise to serious effects on humans or on valued species or organisms,

those which threaten the existing or potential use of an affected area and those causing

additional loading which cannot be sustained by the carrying capacity of the environment.

International heritage sites are defined as any cultural, natural or mixed property that is on

the World Heritage List of UNESCO.

Figure 7.4 summarises the eight main steps of the EA framework for regional power

investment projects within the project cycle. The following sections (7.4 to 7.8 inclusively)

describe in details the eight steps of the EA framework for regional power projects. For each

step, activities to conduct and administrative procedures to follow are specified.




7-12

Figure 7.4 Main steps of the EA process for regional power projects



7-13

7.4 Project identification

At the project identification phase, the EA includes two steps:

Step 1: Preliminary screening

Step 2: Screening (or environmental screening)

7.4.1 Pre-screening (Step 1)

The pre-screening involves two main activities:

(1) the preparation of the project notice and;

(2) the analysis of the project notice.

7.4.1.1 Preparation of the Project Notice

The proponent of any hydropower, thermal and geothermal power and

transmission lines project in the NBI countries (Burundi, DRC, Egypt,

Ethiopia, Kenya, Rwanda, Sudan, Tanzania, and Uganda) has the

responsibility to prepare a project notice which the content is presented in

Box 7.1.

Box 7.1 Contents of a Project Notice

• Name and type of the project • Identification of the proponent • Nature and location of the project area; • Area that may be beneficially or adversely affected by the project; • Characteristics of the project design; • Activities to be undertaken during the construction and operation of the project; • Materials needed for construction and inputs required for operation; • Potential products and by-products, including wastes generated by the project; • Number of people that the project will employ and the economic and social

benefits to the local community, the nation and neighbouring countries; • Transboundary adverse environmental and social effects of the project, and

how they will be eliminated or mitigated; and • Any other matter, which may be required by the Environmental Agency of the

country of origin.




7-14

The proponent shall submit five copies of the project notice to the National Environmental

Authority (NEA) of the project country of origin.

7.4.1.2 Analysis of the Project Notice

Upon reception of the project notice, the NEA has to analyse it to decide whether the power

project is subjected to the National EA Process (NEAP) or to the Regional EA Process

(REAP).

In all cases, whether the project involves only one or more than one country, the NEA shall

transmit the project notice with the results of its analysis to the Regional EA Working Group

(REAWG) in charge to coordinate the REAP, with copy of the project notice analysis to the

project proponent.

The analysis of a project notice shall include the information listed in Box 7.2.

Box 7.2 Contents of a Project Notice Analysis

• Name and type of the project • Identification of the proponent • Project country of origin • Other countries involved in the project • Potential significant adverse transboundary impacts • Potential significant adverse impacts on international heritage sites • Project subjected or not to the national EIA process • Project subjected or not to the regional EA process, with justification

Hydropower, thermal, geothermal and transmission lines projects are subjected to the REAP

if one of the following criteria is met:

• The project affects or provides benefits to at least two NBI countries;

• The project is likely to cause significant adverse transboundary impacts;

• The project is likely to cause significant adverse impacts on an international heritage site.

In any case that the REAP is triggered, it is not necessary to duplicate the process by

implementing the NEAP, because the REAP harmonizes the EA requirements of all

NBI countries and funding agencies in general.



7-15

7.4.2 Screening (Step 2)

In the case that the pre-screening determines that the project proposal is submitted to the

REAP, the REAWG undertakes the proper screening of the project in order to determine the

category of the project and therefore, the types of environmental and social studies that will

need to be carried out before making the decision on the project.

The screening involves the following activities:

(1) Determination of the project category

(2) Identification of documents to prepare

(3) Non-objection by the funding agency

(4) CDM project screening (see Chapter 10)

Determination of project categories

The World Bank, African Development Bank and European Union

categorize the project proposals according to various criteria, such as

the type and scale of the project, location of the project, its

environmental and social impacts and the importance of these impacts.

The World Bank and AfDB use qualitative criteria, whereas the

European Union has quantitative criteria (thresholds).

The proposed EA framework for regional power projects suggests the following categories of

project:

• Category A if the project is likely to have significant adverse environmental impacts that are sensitive3, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works and may be transboundary. The EIA for a Category A project examines the project’s potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the “without project” situation), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. For a Category A project, the borrower is responsible for preparing the EIA report and other related documents such as a resettlement plan, if required, and an environmental and social management plan (ESMP).

3 A potential impact is considered “sensitive” if it may be irreversible (e.g., lead to loss of a major natural

habitat) or raise issues covered by OP 4.10, Indigenous Peoples; OP 4.04, Natural Habitats; OP 4.11, Physical Cultural Resources; or OP 4.12, Involuntary Resettlement.




7-16

• Category B if the project potential adverse environmental impacts on human populations or environmentally important areas, including wetlands, forests, grasslands, and other natural habitats, are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigation measures can be designed more readily than for Category A projects. The scope of environmental assessment (EA) for a Category B project may vary from project to project, but it is narrower than an EA for Category A. Like Category A EA, it examines the project’s potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. Depending on the type of project and the nature and magnitude of the impacts, the EA report of a Category B project may include a limited environmental impact assessment, or an environmental and social management plan (ESMP) if an environmental and social analysis is not required and that typical mitigation measures are sufficient.

• The “no funding” category applying to projects that funding agencies do not finance in accordance to their policies. For example, the World Bank does not support projects that involve the significant conversion or degradation of critical natural habitats in accordance with its OP 4.04 – Natural Habitats. Other similar situations may occur, depending of the characteristics of the project and the funding agency involved in its financing.

Clear criteria are required to assign the proper category to a given power project. This EA

process defines such criteria only for category A projects (Table 7.1), meaning that if a given

project does not meet any of the Category A criteria, then it is automatically assigned to

category B, unless the “no funding” category applies for the reasons previously mentioned.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

Tec

sult

Inte

rnat

iona

l

7-17

Tab

le 7

.1

Cri

teri

a as

sig

nin

g C

ateg

ory

A t

o p

ow

er p

roje

cts

Typ

e an

d s

cale

of

the

pro

ject

L

oca

tio

n o

f th

e p

roje

ct

Imp

acts

an

d is

sues

N

atu

re o

f th

e im

pac

ts

Con

stru

ctio

n or

exp

ansi

on o

f:

• La

rge

dam

s an

d re

serv

oirs

(m

ore

than

10

Mm

3 res

ervo

ir)

Sou

rce:

EU

• P

ower

sta

tion

(K 2

00 M

W)

Sou

rce:

Can

adia

n E

A A

ct

• T

rans

mis

sion

line

s (K

220

kV

an

d >

15 k

m)

Sou

rce:

EU

• E

nviro

nmen

tal s

ensi

tive

area

s,

such

as

wet

land

s, h

abita

ts o

f th

reat

ened

spe

cies

, etc

. • O

ffici

ally

pro

tect

ed a

rea

• In

or

near

arc

haeo

logi

cal o

r hi

stor

ical

site

s

• In

inha

bite

d ar

eas,

whe

re

rese

ttlem

ent c

an b

e re

quire

d or

nu

isan

ces

of th

e pr

ojec

t can

si

gnifi

cant

ly a

ffect

the

loca

l po

pula

tions

• In

are

as o

f con

flict

s fo

r na

tura

l re

sour

ces

• A

long

wat

er b

ody,

in a

reas

of

grou

ndw

ater

rec

harg

e or

dr

inki

ng w

ater

sup

ply

• O

n la

nds

or in

wat

ers

with

pr

ecio

us r

esou

rces

(fis

herie

s,

min

eral

s, m

edic

inal

pla

nts,

fe

rtile

soi

ls, e

tc.)

• S

igni

fican

t pol

lutio

n lik

ely

to

affe

ct th

e qu

ality

of a

ir, w

ater

or

soil

• La

rge

scal

e ph

ysic

al

dist

urba

nce

of th

e si

te a

nd

surr

ound

ings

• S

igni

fican

t los

s of

fore

sts

or

othe

r na

tura

l res

ourc

es

• S

igni

fican

t cha

nge

in th

e hy

drol

ogic

al r

egim

e • P

rese

nce

of h

azar

dous

pr

oduc

ts in

sig

nific

ant q

uant

ity

• In

volu

ntar

y re

settl

emen

t and

ot

her

sign

ifica

nt s

ocia

l im

pact

s (s

ee B

ox 7

.3)

• Lo

ss o

r irr

ever

sibl

e de

grad

atio

n of

a n

atur

al h

abita

t and

loss

of

biod

iver

sity

or

ecol

ogic

al

func

tions

• R

isks

on

hum

an h

ealth

• Im

pact

s on

indi

geno

us

com

mun

ities

(se

e B

ox 7

.4)

• N

o m

itiga

tion

or c

ompe

nsat

ion

mea

sure

s in

the

proj

ect d

esig

n

• Ir

reve

rsib

le e

nviro

nmen

tal o

r so

cial

impa

ct

• N

eura

lgic

impa

ct (

trig

gerin

g a

safe

guar

d po

licy

of th

e W

orld

B

ank

– se

e T

able

7.2

bel

ow)

• Lo

cal o

r re

gion

al im

pact

, as

appo

sed

to s

ite s

peci

fic im

pact

• A

dver

se e

nviro

nmen

tal o

r so

cial

im

pact

of m

ajor

impo

rtan

ce




7-18

Box 7.3 Involuntary resettlement at the screening step

The screening must identify if the project will require land acquisition or restriction of access to resources. Involuntary resettlement safeguard policy is triggered if a project causes people to lose land or other assets. The impacts covered include: 1. loss of housing or shelter; 2. loss of assets or access to assets; 3. loss of income sources or means of livelihood, whether or not the people

will have to move to another location. This includes people with formal property rights but also land held under customary rights and squatters residing on public lands. Involuntary loss of common property resources or access to resources without losing possession of them is also considered involuntary resettlement. Therefore, the project screening analysis should include a brief land acquisition assessment stating actual ownership, occupancy and use of the land identified for the purpose of the project. The land includes anything growing on or built on the land.

Box 7.4 Indigenous peoples at the screening step

The screening must identify whether indigenous peoples live in the project area or have collective attachment to the project area. In compliance with the World Bank policy (World Bank, OP 4.10 p.1-2)., the term “indigenous peoples” is used as a generic term to design distinct, vulnerable, social and cultural groups presenting the following characteristics in varying degrees:

a. “self-identification as members of a distinct indigenous cultural group and recognition of this identify by others;

b. collective attachment to geographically distinct habitats or ancestral territories and to the natural resources in these habitats and territories. “Collective attachment” means that for generations there has been a physical presence in and economic ties to lands and territories traditionally owned, or customary used or occupied, by the group concerned, including areas that hold special significance for it, such as sacred sites. “Collective attachment” also refers to the attachment of transhumant/nomadic groups to the territory they use on a seasonal or cyclical basis.

c. customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and

d. an indigenous language, often different from the official language of the country or region”

In conducting this screening, it might be necessary to get technical advice from social scientists and/or to consult indigenous communities representatives. If indigenous peoples do live in the project area or have collective attachment to the project area, the environmental assessment of the project shall include a specific indigenous peoples social assessment.



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Safeguard policies other than OP 4.01 triggered by the project and required actions

In addition to determine the environmental category and the EA instrument to undertake, the

environmental screening should allow to identify the safeguard policies of the World Bank

other than OP 4.01 triggered by the project and therefore, the documents required by these

policies (resettlement plan, indigenous communities plan, cultural property plan, etc.). As

previously mentioned, the World Bank safeguard policies potentially applicable to power

projects are the following:

OP 4.01: Environmental Assessment

OP 4.04: Natural Habitats

OP 4.10: Indigenous Peoples

OP 4.11: Cultural Property

OP 4.12: Involuntary Resettlement

OP 4.37: Safety of Dams

OP 7.50: International Waterways

On the basis of the description of these policies presented in the above Section 5, table 7.2

shows the situations that can trigger safeguard policies other than OP 4.01 and subsequent

actions to undertake.

Table 7.2 Situations triggering safeguard policies other than OP 4.01 and subsequent actions to undertake

Policy Trigger Actions

OP 4.04 Impacts on natural habitat or on critical natural habitat

� Mitigation and/or compensation measures

� No funding for projects affecting critical natural habitat

OP 4.10 Land acquisition, use of natural resources or restrictions on access to territories that indigenous people traditionally used or occupied

� Explore alternatives to the project design in order to avoid such territories

� Engage in free, prior and informed consultation with affected indigenous communities

� Elaborate an Indigenous Peoples Plan

OP 4.11 Impacts on physical cultural resources that have archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance

� Mitigation measures as part of the environmental management plan

� Measures range from full site protection to selective mitigation




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Policy Trigger Actions

OP 4.12 Permanent or temporary land acquisition that entails either: 1) loss of housing or shelter; 2) loss of assets or access to assets; 3) loss of income sources or means of livelihood, whether or not the people will have to move to another location.

� Elaboration of a Resettlement Action Plan (or of an abbreviated resettlement plan in certain circumstances).

OP 4.37 Construction of a new dam � Design and construction supervision by experienced and competent professionals

� Dam safety measures

OP 7.50 Hydroelectric project that involve the use of any water body that forms a boundary or flows through two or more states, and/or the use of a tributary of such water body

� Appropriate agreements or arrangements for the entire waterway or any part thereof between the riparian countries.

Environmental assessment instruments for regional power projects

The types of EA to undertake for each project category are presented in Table 7.3:

Table 7.3 EA instruments for regional power projects

Type of project EA instrument

Category A project EIA, including an ESMP, and Life Cycle Assessment (LCA)

Category B1: Category B project requiring an environmental and social analysis Limited EIA, including an ESMP

Category B2: Category B project not requiring an environmental and social analysis and for which typical mitigation measures are sufficient:

ESMP

No funding category No EA is required as the project is not retained

7.4.3 Environmental screening administrative procedure

The administrative procedure to undertake the environmental screening of a regional power

project is detailed in Table 7.4.

This procedure includes the preparation of an environmental screening form which content is

presented in Appendix 4. This form allows to identify the project category and the safeguard



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policies triggered by the project, as well as the documents required according to these

policies.

Table 7.4 Administrative procedure of environmental screening (steps 1 & 2)

No Action Responsibility Delay

1 Preparation of the project notice and transmission to the National Environmental Authority (NEA) of the project country of origin

Project proponent N/A

2 Pre-screening of the project notice and notification to the project proponent

NEA of the project country of origin

According to national legislation. If none, maximum 2 weeks after reception of the project notice

3 Transmission of the project notice analysis to the Regional EA Working Group Agency (REAWG)


2 weeks after reception of the project notice

4 Validation of the project notice analysis and notification to the NEA(s) concerned by the project

REAWG 2 weeks after reception of the project notice analysis

5 Preparation of the Environmental Screening Form and transmission to the Funding Agency

REAWG 1 month after reception of the project notice analysis

6 Non-objection by the funding agency on the project category and safeguard policies triggered by the project

Funding agency 2 weeks after reception of the Environmental Screening Form

7 Transmission of all relevant information to the NEA(s) concerned by the project

REAWG 1 week after reception of the funding agency reply

Following environmental screening, if the project is modified or if new information become

available, the NEA and REAWG consider the relevance to change the category of the

project and if this the case, review the Environmental Screening Form and submits it again

to the funding agency for non-objection.

7.5 Project preparation

At the project preparation phase, step 3 and step 4 of the EA process are set in motion:

Step 3: Scoping (or environmental scoping)

Step 4: Impact assessment (or environmental assessment)




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7.5.1 Scoping (Step 3)

This section presents: (I) the administrative procedure of environmental scoping and (II)

special social issues to consider at the scoping step.

7.5.1.1 Environmental scoping main activities and administrative procedure

The objective of Environmental Scoping is to prepare the Terms of

Reference (TOR) of the environmental and social studies identified during

screening, according to the environmental and social issues highlighted in

the Environmental Screening Form, so that these studies comply with

applicable national legislation and policies of the funding agency.

This EA framework requires that scoping for the EA of a regional power

project be conducted by the project proponent in consultation with the

concerned NEA(s), and other interested stakeholders in the country of origin

of the project as well as in the country of impact in case of significant

adverse transboundary impact. The proponent has to prepare a scoping

report which presents the results of scoping and also constitutes part of the

Terms of Reference of the EA.

Environmental scoping involves the following activities:

(1) preliminary consultation of stakeholders

(2) the preparation of the TOR for the required documents

(3) approval of the scoping.

(4) step 1 of LCA (Goal and scope of the project – see Chapter 9)

(5) preparation of the project design document (PDD) for CDM application (Chapter 10)

At the scoping stage, preliminary consultation of stakeholders has the following objectives:

• To identify project stakeholders;

• To identify existing local information and traditional knowledge sources;

• To inform potential stakeholders of the ongoing EIA process and of the need for their inputs;

• To identify the local perceptions of the social and environmental key issues of the project.



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Scoping involves visiting the project site and consultation with potentially affected groups,

relevant governmental agencies, and representatives of other interested stakeholders

including local non-governmental organizations (NGOs). This will include meetings to obtain

their comments on what environmental and social issues the EA shall consider. The

methodology for public consultations is provided in Appendix 3.

The project proponent shall prepare the TOR of the required studies and these shall be

reviewed and approved by the NEA of the project country of origin. In case of significant

adverse transboundary impacts, the NEA of the country of impact should also be consulted.

The contents of TOR for an EIA, a Resettlement Action Plan (RAP) and Abbreviated RAP of

a category A project are presented in Appendix 5 and 6. For a Category B project requiring

an EIA, the scope of the TOR can be reduced in accordance with the nature of the project,

its potential impacts and the environment in which it is proposed.

The administrative procedure to undertake the environmental scoping (step 3 of the EA

process) of a regional power project is detailed in Table 7.5.

Table 7.5 Administrative procedure of environmental scoping (step 3)


1 Notification to the project proponent to begin scoping


1 week after reception of all relevant information from the REAWG

2 Selection of the consultant to prepare the TOR of the studies


3 For category A projects, consultations of affected communities and local NGOs

Consultant and NEA N/A

4 Preparation of the scoping report, including the TOR of the required documents according to screening results, and transmission to NEA of the project country of origin

Consultant N/A

5 Transmission of the scoping report to the NEA of the country of impact in case of significant adverse transboundary impacts


1 week after reception of the TOR

6 Transmission of comments on the TOR to the NEA of the project country of origin

NEA of the country of impact

2 weeks after reception of the TOR




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7 Approval of the TOR and notification to the project proponent

NEA(s) 1 month following the reception of TOR from the Project proponent

8 Transmission of all documents to the REAWG


1 week after approval of the TOR

7.5.1.2 Special social issues to consider at the scoping step

The social issues triggered by power and interconnection projects are involuntary

resettlement, poverty reduction and socio-economic development, public health, gender,

vulnerable groups, indigenous communities and, historical and cultural sites. The objective

of the scoping is to assess the extent of these issues in the project in order to identify the

scope of studies that shall be carried out during project preparation. Most issues will be

integrated in the terms of references of the Environmental Impact Assessment. However,

involuntary resettlement and indigenous peoples issues will require special studies. The

scoping shall determine the type and scale of these issues to establish the level of surveys

and documentation required.

I. Involuntary resettlement

Generally, involuntary resettlement is one of the major social issues of power projects.

Therefore, the screening will categorize the project to establish which type of study and

planning instrument shall be used for the resettlement:

1. A Resettlement Action Plan (RAP) or;

2. An abbreviated resettlement plan.

A Resettlement Action Plan is required for any project that entails involuntary resettlement

for 200 or more severely affected persons because of:

• Physical displacement due to loss of land;

• Permanent lost of more than 10% of the person’s productive assets.

An abbreviated resettlement plan may be used if the project impacts are minor. The

impacts are considered minor if one of the following conditions occurs:



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• Less than 200 persons are physically displaced;

• The number of affected people is more than 200 but they are not physically displaced and they lose less than 10% of their productive assets.

In order to define exactly which type of resettlement instrument shall be used, the scoping

needs an estimation of the number of people who will:

• loose their house or shelter;

• loose their productive assets or access to these assets;

• loose their income sources or means of livelihood.

It is likely that a RAP will be required for most NBI projects at the Environmental and social

impact assessment stage. A RAP is the most detailed planning instrument for resettlement.

Preparation of the RAP is a major task of the EIA.

Appendix 6 provides the Terms of Reference for a Resettlement Action Plan and for an

Abbreviated resettlement plan. It also provides the overall objectives and the guidelines for

preparing a resettlement instrument in accordance with the World Bank and the African

Development Bank standards.

II. Indigenous peoples

If indigenous peoples do live in the project area or have collective attachment to the project

area, the environmental assessment of the project shall include a specific indigenous

peoples social assessment to.

• Evaluate the project’s potential impacts on the indigenous communities;

• Examine project’s alternative to avoid significant adverse affects on these communities especially their physical relocation;

• If alternatives cannot totally avoid involuntary restrictions or resettlement, engage in free, prior and informed consultation with indigenous communities.

Appendix 7 gives details on the items that should be covered by an indigenous peoples

social assessment.

The indigenous peoples social assessment must provide the project proponent all

information to determine whether or not the affected indigenous communities give a broad




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support to the project. Such a support will be a condition to proceed with the project. If such

a support is confirmed and the project planning is carried on, the project proponent will need

to elaborate an Indigenous Peoples Plan (IPP). The IPP will specify the measures required

to ensure that indigenous peoples receive social and economic benefits from the project.

The proposed measures will be detailed and their cost will be budgeted for. The IPP will be

integrated in the project design. Appendix 7 provides Terms of references to conduct an IPP.

7.5.2 Impact Assessment (Step 4)

This step comprises three main activities:

(1) Preparation of the studies, including steps 2 to 5 of LCA

(2) Public consultations

(3) Review of compliance

7.5.2.1 EA Instruments

Based on the information from the scoping exercise as required in the

Terms of Reference, the proponent or normally its consultant carries out

the EA of the power project submitted to the Regional EA process. The

above Table 7.3 presents the EA instruments to be used for each category

of regional power projects.

Manantali dam



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Category A projects require a full EIA, an ESMP, a LCA and social studies if required by this

EA framework. The EA of a Category B project may include a limited environmental impact

assessment, or only an environmental and social management plan (ESMP) in the case that

an environmental and social analysis is not required. Guidelines to conduct a LCA are

presented in Chapter 9 below.

Environmental Impact Assessment

First, it is important to underline that an EIA report for a Category A project shall focus on the

significant environmental and social issues of the project. The scope and level of detail of the

report shall be representative of the potential impacts of the project. The EIA for a Category

A project examines the project’s potential negative and positive environmental impacts,

compares them with those of feasible alternatives (including the “without project” situation),

and recommends any measures needed to prevent, minimize, mitigate, or compensate for

adverse impacts and improve environmental performance.

Box 7.5 Contents of an EIA Report

• Executive Summary, presenting in a non-technical language a concise summary of the

EIA Report with a particular attention on the methodology of the study, baseline conditions, alternatives considered, mitigation/enhancement/monitoring measures, public consultations, institutional aspects, and cost implications. This Executive Summary shall be written in English and in the local language of the project area, if necessary for public consultations.

• Introduction, presenting the purpose of the EIA, an overview of the proposed project to

be assessed, including its purpose and needs, the project proponent and the consultant assigned to carry out the EIA, and mentioning the contents of the EIA Report and the methods used to carry out the study.

• Policy, Legal, and Administrative Framework, describing the relevant environmental and

social policies of the funding agency and project country of origin, national legal requirements and relevant international environmental agreements ratified by the country.

• Project Description and Justification describing the project location, various project

components, capacity, construction activities, facilities, staffing, working conditions, availability and source of raw materials, production methods, products, schedule of works, land tenure, land use system, potential beneficiaries, affected groups, including any offsite investments that may be required (i.e. access roads, water supply, housing for workers, and raw material and product storage facilities), and the need for any resettlement plan or indigenous peoples development plan.




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• Description of the Project Environment, first fixing the limits of the study area that shall encompass all project direct and indirect impacts, then describing the relevant physical, biological, and socioeconomic conditions, including any changes anticipated before the project commencement, and by paying particular attention to rare, threatened, sensitive or valorised environmental and social components.

• Public Consultations, summarising the actions undertaken to consult the groups affected

by the project, as well as other concerned key stakeholders including Civil Society Organisations. Detailed records of consultation meetings shall be presented in annex to the EIA Report. The records will include: location and day of the meeting, name of all participants, issues that have been raised.

• Analysis of alternatives, i.e. comparison of feasible alternatives to the proposed project

site, technology, design, and operation, including the “without project” scenario, in terms of their potential environmental impacts incorporating life cycle and system approach, feasibility of mitigating these impacts, capital and recurrent costs, suitability under local conditions, and institutional, training, and monitoring requirements.

• Potential Impacts and Mitigation/Enhancement Measures, presenting the methodology of

impact assessment, the detailed analysis of beneficial and adverse impacts of the selected project alternative on the physical, biological and human (social, cultural and economic) environments, indicating the importance and probability of the impacts. Irreversible impacts shall be clearly identified. Cumulative effects shall also be addressed taking into account other projects or actions planned in the study area. Appropriate mitigation measures shall be identified to prevent, minimise, mitigate or compensate for adverse environmental and/or social impacts. Moreover, enhancement measures shall be developed in order to improve project environmental and social performance.

• Accident Risk Management Plan, including safety measures and preliminary emergency

plan for the construction and operation phases of the project including potential accident scenarios, major actions to properly react to accidents, responsibilities and means of communications. For projects that may cause major accidents whose consequences may exceed the project site (such as dam failure), the EIA shall include an analysis of the risk of accident including the identification of hazard and potential consequences, estimation of the consequences’ magnitude and frequency, and risk evaluation (see Appendix 8 for more details).

• Environmental and Social Management Plan (ESMP), including mitigation and safety

measures, monitoring, and institutional capacity building (see details hereafter). • Conclusion, stating the environmental and social acceptability of the project, taking into

account the impacts and measures identified during the assessment process. It shall also identify any other condition or external requirement for ensuring the success of the project.

• Appendixes, including the list of EA report preparers, consulted documents, record of

interagency and consultation meetings, including consultations for obtaining the informed views of the affected people and local (NGOs).



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Environmental and Social Management Plan

The environmental and social management plan (ESMP) consists in the set of mitigation,

monitoring, and institutional measures to be taken during implementation and operation of

the project to eliminate adverse environmental and social impacts, offset them, or reduce

them to acceptable levels. The plan also includes the actions needed to implement these

measures. In summary, the EA team shall (i) identify the set of responses to potentially

adverse impacts; (ii) determine requirements for ensuring that those responses are

effectively implemented and in a timely manner; and (iii) describe the means for meeting

those requirements.

Box 7.6 Contents of an ESMP

• Impacts Mitigation: summarizes all anticipated significant adverse environmental and

social impacts; describes feasible and cost effective measures to address these impacts, in order to increase project benefits (enhancement measures) or to reduce potentially adverse environmental and social impacts to acceptable levels (mitigation measures). Each measure shall be described in detail, providing all technical information required for its implementation (design, equipment description and operating procedures, as appropriate).

• Environmental and social monitoring: provides specific description, and technical details,

of monitoring measures, including the parameters to be measured, methods to be used, and definition of thresholds that will signal the need for corrective actions; also provides monitoring and reporting procedures to ensure early detection of conditions that necessitate particular mitigation or corrective measures, as well as information on the progress and results of mitigation.

• Responsibilities and Institutional Arrangements: identifies the responsibilities of the

funding agency, project country of origin, implementing agencies and other stakeholders in applying the ESMP, particularly the mitigation and monitoring measures. In addition, the ESMP shall propose support to the organisations that may have insufficient capacities to fulfil their obligations. This support could be provided through various means including technical assistance, training and/or procurement.

• ESMP Schedule and Costs Estimate: Implementation schedule taking into account all

activities related to the proposed mitigation and monitoring measures, as well as institutional arrangements. This schedule shall be coordinated with the overall project implementation plan.

• Integration of the ESMP with Project: integration of the ESMP into the project’s overall

planning, design, budget, and implementation, in order to be funded and supervised along with the project’s other components.




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7.5.2.2 Environmental Assessment Administrative Procedure

The administrative procedure to undertake the environmental assessment (step 4 of the EA

process) of a regional power project is detailed in Table 7.6.

Table 7.6 Administrative procedure of environmental assessment (step 4)


1 Selection of the consultant(s) to carry out the studies


2 Preparation of the environmental and social studies

Consultant According to TOR

3 For category A projects, consultations of affected communities and local NGOs


4 Submission of the draft reports of the studies to the NEA of the project country of origin


5 Review of compliance of the draft reports and emission of compliance or non-compliance notice to the consultant

NEA 2 weeks after reception of the reports

6 In case of non-compliance, revision of the reports

Consultant N/A

7 Transmission of the draft reports to the NEA of the country of impact in case of significant adverse transboundary impacts


1 week after emission of compliance notice to the project proponent

7.6 Project appraisal and approval

At the project appraisal and approval phase, steps 5 and 6 of the EA

process are set in motion:

Step 5: Review of the studies

Step 6: Decision making

7.6.1 Review of the studies (Step 5)

The review of the studies comprises three main activities:

(1) Internal review of the studies, including the national approval of

a CDM project



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(2) External review through disclosure and public consultation

(3) Completion of the studies

The review of the studies aims to establish whether the information provided is sufficient and

complete and complies with the terms of reference. It judges the reliability of analysis and

interpretation of data to find if it is consistent with the stated methodology and state of

scientific knowledge. Further, it establishes the relevance of the findings in the studies for

decision-making. In order to ensure objectivity in the review of EIA reports, a

multidisciplinary review team shall be established. The objectives of the review process are

the following:

• To determine whether the project EIA report constitutes a sufficient assessment of environmental and social impacts and to evaluate its relevance and quality for decision-making purposes;

• To gather a variety of opinions expressed by stakeholders concerning the acceptability of the project and the quality of the EIA process undertaken;

• To ensure that the EIA report and process comply with this EA framework;

• To establish whether the project complies with the policies of the project country of origin and the funding agency.

The review process shall include the analysis of the required studies and recommendations

for the decision-maker. The following steps for EA review have been identified by the

Regional EA Guidelines for Shared Ecosystems of the East African Community (EAC, 2006):

• Set the boundaries and scope of the review: the composition of the EA review team will depend on the significant environmental and social issues being addressed.

• Identify review criteria (examples are provided in Box 7.7): the TOR should be used as the main basis for identifying the review criteria (project objectives and description, baseline data, alternatives, environmental and social impacts, mitigation, monitoring, etc.). Special consideration should be given to significant adverse transboundary impacts and impacts on international heritage sites.

• Use input from public stakeholders: helps to check and determine the quality of descriptions in the EIA, including the description of the environment, the importance of the potential impacts and the acceptability of the possible alternatives; public review and hearings can provide significant stakeholder inputs.

• Carry out the review: by identifying the deficiencies in the EIA, focusing on crucial shortcomings observed in the report.

• Determine the required remedial measures: either the need for a supplement to the EIA (or a new EIA) in case of significant shortcomings; attaching conditions for implementation in case of easily rectifiable shortcomings; or need for clarification in case of minor shortcomings.




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• Publish the review report: this is essential to ensure the objectivity and transparency of the whole process.

Box 7.7 EIA review criteria

• Compliance with the approved Terms of Reference • Consistence/compliance with applicable laws, policies, and existing guidelines • Sufficient quantitative information to make an informed decision about environmental and

social components with a high degree of confidence • Statement of confidence in findings • Statements regarding gaps in information, uncertainties, risks • Assessment of the project impacts on the environment, especially transboundary

impacts • Determination of the costs of mitigating and compensation measures • Probability of significant indirect and/or cumulative effects • Clear statement of likely irreversible or irreplaceable impacts • Consistence with all environmental planning frameworks and policies • Clear statement of any advantages for, or benefits to, the environment Source: Regional EA Guidelines for Shared Ecosystems of the East African Community (EAC, 2006)

According to the above Table 7.3, the environmental and social studies of regional power

projects in NBI countries include:

• An EIA, including an ESMP, for all projects of Category A and for most projects of Category B (Category B1);

• An ESMP for Category B projects which do not require an environmental and/or social analysis and for which typical mitigation measures are sufficient (Category B2);

• A Life Cycle Assessment for Category A projects;

• Social studies, such as resettlement plan and indigenous community plan, in accordance with the policies of the funding agency.

In order to comply with the environmental and social policies of funding agencies and

regulations of NBI countries, the review of the studies shall include internal and external

review processes.

However, the ESMP of Category B projects which do not require an environmental and/or

social analysis can be approved directly by the NEA of the project country of origin, before

the non-objection by the funding agency.



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7.6.1.1 Internal review

Following the emission of compliance to the consultant in charge of preparing the studies,

the NEA of the project country of origin has the responsibility to establish an ad hoc technical

review committee (TRC). Members of this committee may include representatives of the

following organisations:

• NEA of the project country of origin;

• NEA of the country of impact, in case of significant adverse transboundary impacts;

• Environmental unit of the power utility of the project country of origin;

• Environmental unit of the Ministry responsible for Electricity.

Each member of the TRC participates in the technical evaluation of the studies, integrates

relevant environmental, social and sectoral dimensions and prepares technical evaluation.

The NEA of the project country of origin is responsible of the evaluation process, ensures

the coordination of the TRC activities and prepares the Internal Review Report. The NEA

can consult other ministries or environmental organisations concerned by the project or

request the services of other experts to accomplish the review of the EA studies.

The structure of the Internal Review Report may follow the contents of the scope of work

included in the TOR of the studies, or the typical table of contents of an EIA report as

indicated in this EA framework. For each item, comments shall indicate if the information is

appropriate and complete, or not. If not, they should clearly state what is lacking and what

should be done to comply with the TOR.

7.6.1.2 External review (Disclosure of the studies and public consultation)

Involvement of, and inputs from stakeholders, interest groups and affected groups, form an

integral part of the objectivity and transparency of the review process.

Public consultation is a very important cross-cutting issue for all World Bank safeguard

policies. Public consultation is required by OP 4.01 as well as OP 4.10 and OP.4.12. The

disclosure of project information to the population is requested by The World Bank Policy on

Disclosure of Information. Therefore, proponents of all category A or B projects, are

compelled to disclose relevant project documentation prior to the consultations. The




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documentation shall be written in a language understandable by the affected parties and it

shall be properly disseminated.

For category A and B projects, the proponent must provide the parties with an appropriate

abstract of the conclusions of the EIA preliminary reports. These preliminary reports must be

made available to affected parties and local NGOs in an accessible public location.

Afterwards, public consultation sessions must be held to receive the comments of the parties

on the preliminary reports. These comments shall be taken into account in the final reports.

Records of the sessions shall be held and put in appendix to the final reports.

7.6.1.3 Completion of the studies

Following the internal and external review of the studies, the Consultant of the Project

Proponent shall prepare the final version of the required studies, on the basis of the Internal

Review Report, the Public Consultations records and the comments of the funding agency

on the draft version of the studies transmitted by the NEA of the project country of origin.

Once completed, the project proponent submits to the NEA of the project country of origin

the final version of the required studies.

7.6.2 Decision-making (Step 6)

At the end of the review of the studies, the NEA of the project country of

origin submits all final documents to the Regional EA Working Group

(REAWG) along with its recommendation on the regional power project.

In light of the NEA’s recommendation, based on the report of the TRC, the

minutes of the public consultations and the contents of the final report of the

required studies, the REAWG makes the final decision concerning the

project. This decision may be to authorize the project, with or without

changes and under the conditions that the REAWG determines, or to turn

down the project.

In case that the Project Proponent disputes the decision of the REAWG,

then the case could be referred to a higher instance of the Nile Basin



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Initiative, such as the Nile Technical Advisory Committee (Nile-TAC) or even the Council of

Ministers of the Nile Basin Countries (Nile-COM).

Following the decision of the REAWG or the settlement of the dispute by the higher instance

of the NBI, the case is submitted to the funding agency for non-objection on the decision.

Finally, in case that the National EIA Process was identified at the screening step as

applicable to the project proposal, then the NEA of the project country of origin delivers the

relevant environmental permit. As mentioned in the section on screening, in any case that

the REAP is triggered, it is not necessary to duplicate the process by implementing the

NEAP, because the REAP harmonizes the EIA requirements of all NBI countries and funding

agencies in general.

7.6.3 Review and Decision-making Administrative Procedure

The administrative procedure to undertake the review and decision-making (steps 5 & 6 of

the EA process) of a regional power project is detailed in Table 7.7.

This table describes all activities that lead to the decision on a proposed regional power

project in the NBI countries. Following the approval, non-objection of the funding agency and

deliverance of the environmental permit, an important step consists to ensure that the

environmental and social measures recommended by the studies be integrated in the tender

and contracting documents.

Table 7.7 Administrative procedure of the review and decision-making (steps 5 & 6)4


1 Emission of compliance notice to the consultant


2 weeks after reception of the reports

2 Transmission of the draft environmental and social studies to the funding agency


1 week after the emission of the compliance notice

3 Provision of the draft environmental and social studies at a public place accessible to project-affected groups and local NGOs

Project proponent and NEA

1 week after the compliance notice emission

4 Establishment of the Technical Review Committee


2 weeks after the compliance notice emission

4 This process does not apply to Category B2 projects requiring only an ESMP.




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5 Analysis of the draft environmental and social studies and preparation of the Internal Review Report

Technical review Committee

2 months after the compliance notice emission

6 Public consultations in the project area Project proponent and NEA


7 Transmission of comments on the draft studies to the NEA of the project country of origin

Funding agency 2 months after the compliance notice emission

8 Transmission of the Internal Review Report, Public Consultations Minutes and comments of the funding agency to the Project Proponent consultant



9 Completion of the environmental and social studies and transmission to the NEA of the project country of origin

Consultant N/A

10 Transmission of all final documents along with recommendation for decision to the REAWG

NEA 2 weeks following the reception of final reports

11 Review of the EA process and decision on the project

REAWG 2 weeks following the reception of final reports

12 Transmission of all final documents along with the decision to the funding agency and the NEA

REAWG 2 weeks following the reception of final reports

13 Deliverance of the environmental permit, in case that the NEAP is triggered

NEA After the non-objection of the funding agency

14 Integration of environmental and social measures recommended by the studies in the tender documents and contracting documents

Project proponent and NEA

After the deliverance of the environmental permit



7-37

7.7 Project Implementation and Supervision

At the project implementation and supervision phase, the EA step 7 is set in motion. Step 7

consists basically in implementing the environmental and social management plan (ESMP).

7.7.1 ESMP implementation (Step 7)

This step includes the following activities:

(1) Implementation of the mitigation, monitoring and institutional measures by the project proponent

(2) Control of the ESMP implementation by the NEA

(3) Supervision by the funding agency

(4) Verification and certification of a CDM project

The project proponent shall ensure, during the whole life of the power

project, that the measures identified to offset, mitigate or compensate the

environmental and social adverse impacts are properly executed. This

requires the involvement of at least one environmental and/or social officer

on site in order to verify the implementation of the proposed measures. The

supervisor(s) shall have the authority to modify the schedule or methods of

work in order to reach the objectives of protecting the natural and human environments, if

necessary.

The main objective of monitoring activities is to measure and evaluate the project impacts on

affected environmental and social components and to implement remedial measures, if

necessary. Monitoring activities allow to evaluate the accuracy of the potential environmental

and social impact assessment, as well as the effectiveness of the recommended mitigation

measures. Moreover, they allow to detect any unanticipated environmental or social impact

which may occur during project implementation or operations and to adjust project activities

accordingly.

The monitoring activities intent to quantitatively estimate the real impacts of a project on

affected environmental and social components. They shall be overseen by a specialist with

environmental or social expertise, according to the responsibilities and institutional

arrangements defined in the ESMP.




7-38

Monitoring activities are based on indicators that measure changes over time of key

environmental and social components affected by the project interventions. Therefore, for

each major or undetermined environmental or social impact identified in the EIA and/or

ESMP, an indicator shall be established to monitor the impact during project implementation

and/or operations.

The selected indicators shall be easily measurable according to a pre-determined schedule,

in order to adjust project implementation activities in case of unanticipated or non-mitigated

adverse impacts. The proponent shall regularly report monitoring.

Adequate project funding shall be allocated to relevant agencies for efficient monitoring.

During project implementation, the project proponent shall periodically report to the NEA and

the funding agency on:

• compliance with the measures agreed upon in the ESMP;

• the status of mitigation measures;

• the findings of monitoring programs.

The control of the ESMP implementation is the responsibility of the NEAs of the project

country of origin and country of impact.

Finally, the funding agency bases the supervision of the project’s environmental aspects on

the findings and recommendations of the EA, including measures set out in the ESMP and

other project documents.

Power transmission line



7-39

7.7.2 Administrative procedures for the ESMP implementation

The administrative procedure to undertake the ESMP implementation of a regional power

project is detailed in Table 7.8.

Table 7.8 Administrative procedure of the ESMP implementation (step 7)


1 Designation of an officer in charge to verify the implementation of the ESMP measures

Project proponent As soon as possible following the project approval

2 Integration of environmental clauses in tender documents

Project proponent As soon as possible following the project approval

3 Implementation of the mitigation measures

Contractors and operators

During project construction and operation

4 Verification of mitigation measures implementation

Environmental officer of the project proponent

During project construction and operation

5 Supervision Funding agency During project construction and operation

6 Reporting mitigation implementation to the NEA and funding agency

Environmental officer of the project proponent

In accordance with the ESMP

7 Environmental and social monitoring Project proponent consultant


8 Reporting monitoring results to the NEA and funding agency

Project proponent consultant





7-40

7.8 Project Post-Evaluation

7.8.1 Auditing (Step 8)

At the project post-evaluation phase, the EA step 8 is set in motion.

Step 8 concerns auditing. It comprises two main activities:

(1) Environmental and social audit

(2) Review of the audit

Auditing consists basically in evaluating the effective environmental and

social performance of the project, by noting notably if the environmental

and social impacts caused by the project were anticipated in the EA

report, and noting also the effectiveness of the mitigation measures taken.

Therefore, before the project decommissioning, the proponent shall

undertake an environmental audit of the project to establish the resulting

state of the natural and human environments once the project has been

implemented.

Environmental auditing is an objective examination of whether or not practice complies with

expected standard. Broadly, environmental auditing means to check the results of the

environmental management during the project implementation and implies testing and

verification. Auditing deals with the organization of monitoring data to establish the record of

change associated with a project and the comparison of actual and predicted impacts for the

purpose of assessing the accuracy of predictions and the effectiveness of impact

management practices and procedures.

The environmental audit provides a systematic evaluation of environmental and social

information on the extent to which a project complies with relevant policies and national

regulations as well as with the project ESMP. In general, audits undertaken at the project

completion phase shall help to better design future projects.

In general, Category A projects require a full audit, whereas Category B projects require a

desk audit.

The full audit consists in a systematic, independent and documented process for obtaining

evidence and evaluating objectively the extent to which audit criteria are fulfilled. The full

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7-41

audit requires a field mission. The desk audit is based on a desk review of environmental

and social information provided during monitoring.

The auditing process includes

three phases: (i) audit

preparation, (ii) auditing

activities, and (iii) audit reporting.

The aim of the audit preparation

is to plan the audit activities so

that the audit can be conducted

effectively and efficiently. It

includes the preparation of the

audit TOR, if necessary, audit

plan and audit questionnaire.

Other documents may be prepared such as registers, the audit checklist, and the template

for the audit report. This phase also involves the identification of the audit team and

associated tasks.

For a full audit, the on-site auditing activities involve an opening meeting with the proponent,

document review, inspections, interviews, team meetings, preparation of audit findings and

conclusions and a closing meeting with the project proponent.

On the other hand, a desk audit involves the review of available project documentation, the

audit questionnaire and other relevant documents collected for this purpose. Audit findings

shall be communicated to the project proponent.

The final phase of an audit involves the production of the audit report presenting the findings,

conclusions and recommendations.

7.8.2 Administrative procedures for the audit

The administrative procedure to undertake the environmental and social audit (step 8 of the

EA process) of a regional power project is detailed in Table 7.9.

Power substation




7-42

Table 7.9 Administrative procedure of project auditing (step 8)


1 Selection of the consultant to prepare the TOR of the environmental audit


2 Preparation of the TOR of the environmental audit and transmission to NEA of the project country of origin

Consultant N/A

3 Transmission of the TOR to the NEA of the country of impact in case of significant adverse transboundary impacts


1 week after reception of the TOR

4 Transmission of comments on the TOR to the NEA of the project country of origin

NEA of the country of impact

2 weeks after reception of the TOR

5 Approval of the TOR and notification to the project proponent

NEA(s) 4 weeks following the reception of TOR from the Project proponent

6 Preparation of the audit and transmission of the draft to the NEA of project country of origin


7 Transmission of the draft audit to the NEA of the country of impact in case of significant adverse transboundary impacts


1 week after reception of the audit

8 Transmission of the draft audit to the funding agency


1 week after reception of the audit

9 Transmission of comments on the draft audit to the NEA of the project country of origin

Funding agency and NEA of country of impact

1 month after reception of the audit

10 Transmission of comments to the Project Proponent consultant


1 month after reception of the audit

11 Completion of the environmental audit and transmission to the NEA of the project country of origin

Consultant N/A

12 Transmission of all final documents to the REAWG

NEA 2 weeks following the reception of final reports

7.9 Institutional Responsibilities in the EA Process Implementation

Various stakeholders will be involved in the implementation of the whole EA framework for

regional power projects. Table 7.10 resumes the responsibilities of each responsible

organisation. In addition, Figure 7.5 presents the organisational chart of the EA process

implementation.



7-43

Table 7.10 EA framework implementation responsibilities

Main steps Activities Responsible organisation

• Preparation of the power project notice Project proponent (PP) 1. Pre-screening

• Screening of the project against NEAP and REAP triggering criteria

National environmental agency (NEA)

• Determination of the project category (A or B)

Regional EA Working Group (REAWG)

• Identification of the documents to prepare REAWG

2. Screening

• Non-objection Funding agency (FA)

• Consultation of affected groups and local NGOs

PP and NEA

• Preparation of the terms of reference for required documents

PP

3. Scoping

• Approval of the scoping NEAs of countries of origin and impact

• Preparation of the studies PP

• Public consultations PP

4. Impact assessment

• Review of compliance NEA

• Internal review of the studies Technical review committee (TRC) and FA

• Disclosure of the studies and public consultation (external review)

PP and NEA

5. Review of the studies

• Completion of the studies PP

• Recommendation for decision NEA

• Review of the process and decision REAWG

• Appeal in case of disputed decision PP – Nile technical advisory body (Nile TAC)

• Non-objection FA

6. Decision-making

• Deliverance of the environmental permit NEA

• ESMP implementation reporting PP

• Control of the ESMP implementation NEA

7. ESMP implementation

• Supervision FA

• Environmental and social audit PP 8. Auditing

• Review of the audit NEAs

The implementation of this regional EA process will require the involvement of a Regional

EA Working Group (REAWG) coordinated by an existing institution of the NBI to be identified

during the operationalization phase of this EA framework (see Chapter 11 below), as agreed

upon by all NBI countries.




7-44

The proposed composition of the REAWG is the following:

• One director, senior expert in environmental assessment of power projects;

• One social sciences expert specialised in social assessment of power projects;

• Support staff.

The main responsibilities of the REAWG would be the following:

• Coordination of the implementation of the EA framework for regional power projects;

• Determination of the category of projects subjected to the EA framework;

• Identification of the documents to prepare for each project subjected to the EA framework;

• Review of the EA process for each subjected project and decision-making regarding the project;

• Review of the EA framework when necessary.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

Tec

sult

Inte

rnat

iona

l

7-45

Fig

ure

7.5

O

rgan

isat

ion

al c

har

t o

f th

e E

A p

roce

ss

P

roje

ct P

rop

on

ent

(PP

)

Nat

ion

al E

nvi

ron

men

tal

Ag

ency

(N

EA

)

Reg

ion

al E

A W

ork

ing

G

rou

p

(RE

AW

G)

Fu

nd

ing

Ag

ency

(F

A)

Tec

hn

ical

Rev

iew

C

om

mit

tee

(TR

C)

Nile

Tec

hn

ical

Ad

viso

ry

Co

mm

itte

e (N

ile T

AC

)

Ste

p 1

Pre

-scr

eeni

ng

Pre

para

tion

of th

e po

wer

pr

ojec

t not

ice

Scr

eeni

ng o

f the

pro

ject

ag

ains

t NE

AP

and

RE

AP

tr

igge

ring

crite

ria

↓ ↓↓↓

Ste

p 2

Scr

eeni

ng

Det

erm

inat

ion

of th

e pr

ojec

t ca

tego

ry

Iden

tific

atio

n of

the

docu

men

ts to

pre

pare

Non

-obj

ectio

n

↓ ↓↓↓

Ste

p 3

Sco

ping

Con

sulta

tion

of a

ffect

ed

grou

ps a

nd lo

cal N

GO

s

Pre

para

tion

of th

e T

OR

for

requ

ired

docu

men

ts

Con

sulta

tion

of a

ffect

ed

grou

ps a

nd lo

cal N

GO

s

App

rova

l of t

he s

copi

ng

↓ ↓↓↓

Ste

p 4

Impa

ct a

sses

smen

t P

repa

ratio

n of

the

stud

ies

Pub

lic c

onsu

ltatio

ns

Rev

iew

of c

ompl

ianc

e

↓ ↓↓↓

Ste

p 5

Rev

iew

of t

he s

tudi

es

Ext

erna

l rev

iew

Com

plet

ion

of th

e st

udie

s

Ext

erna

l rev

iew

Inte

rnal

rev

iew

of t

he

stud

ies

Inte

rnal

rev

iew

of t

he

stud

ies

↓ ↓↓↓

Ste

p 6

Dec

isio

n-m

akin

g

App

eal i

n ca

se o

f dis

pute

d de

cisi

on

Rec

omm

enda

tion

for

deci

sion

Del

iver

ance

of t

he

envi

ronm

enta

l per

mit

Rev

iew

of t

he p

roce

ss a

nd

deci

sion

N

on-o

bjec

tion

A

ppea

l in

case

of d

ispu

ted

deci

sion

↓ ↓↓↓

Ste

p 7

ES

MP

Im

plem

enta

tion

ES

MP

impl

emen

tatio

n re

port

ing

Con

trol

of t

he E

SM

P

impl

emen

tatio

n

Sup

ervi

sion

↓ ↓↓↓

Ste

p 8

Aud

iting

Pre

para

tion

of th

e en

viro

nmen

tal a

nd s

ocia

l au

dit

Rev

iew

of t

he a

udit



8-1

8 ISSUES TO CONSIDER IN THE PREPARATION OF EIA FOR REGIONAL POWER PROJECTS

This chapter provides general environmental and social impact assessment guidelines for

hydropower, thermal and geothermal power, as well as for power transmission lines. The

objective of these guidelines is to facilitate the identification and mitigation of the

environmental and social impacts of regional power projects during the preparation of EIAs

of such projects in the NBI countries.

However, it will be important that detailed EIA guidelines for power sector activities be

prepared based on this EA Framework in the near future in order to harmonise the contents

of the future studies. These guidelines shall focus on the major power projects planned in

the NBI countries, i.e. hydropower projects, thermal power projects and transmission lines,

and explain for each step of an EIA (i.e. description of the project, description of the

environment, analysis of alternatives, environmental and social impacts, mitigation

measures, risk management, monitoring, etc.) the aspects to consider in the frame of the

studies. The guidelines shall also provide detailed information on the main issues related to

each type of project.

The first section of this chapter identifies the typical potential environmental and social

impacts which may be caused by the construction of a power facility in general. Common

mitigation measures for the period of construction are also recommended.

In the four subsequent sections, specific guidelines related to each type of power projects,

include the following information:

• General characteristics of the type of power project;

• Environmental issues related to the type of power project;

• Social issues related to the type of power project

• A check list of specific environmental and social impacts normally anticipated for the type of project;

• A check list of typical mitigation measures.

8.1 Construction of power facilities

The construction of a power facility, whichever is hydropower, thermal or geothermal power

or even transmission lines, involves activities and sources of environmental impacts that are




8-2

similar from one type of project to another. Therefore, Table 8.1 identifies the typical

potential environmental and social impacts which may be generated by the construction of a

power project in general, as well as the measures to prevent, offset, minimise or

compensate these impacts related to construction.

Manantali dam

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

Tec

sult

Inte

rnat

iona

l

8-3

Tab

le 8

.1

Po

ten

tial

imp

acts

, mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

com

mo

n t

o r

egio

nal

pow

er p

roje

cts

– co

nst

ruct

ion

ph

ase

Po

ten

tial

ad

vers

e an

d b

enef

icia

l Im

pac

ts

Mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

A

mb

ien

t ai

r

• D

egra

datio

n of

am

bien

t air

qual

ity

• In

crea

se o

f am

bien

t noi

se

• N

ear

resi

dent

ial a

reas

, avo

id n

oisy

wor

ks a

fter

regu

lar

wor

king

hou

rs.

• M

aint

ain

the

vehi

cles

and

mac

hine

ry in

goo

d co

nditi

on in

ord

er to

min

imis

e ga

s, n

oise

and

dus

t em

issi

ons.

•

Use

app

ropr

iate

mea

ns to

avo

id d

ust d

ispe

rsio

n du

ring

cons

truc

tion.

Wat

er

• C

onta

min

atio

n of

sur

face

and

und

ergr

ound

w

ater

•

Dis

turb

ance

of

wat

er r

unof

f and

dra

inag

e

• C

hang

e in

sur

face

wat

er fl

ow c

ausi

ng in

dire

ct

impa

cts

on w

ater

use

s an

d fis

h ha

bita

t •

Incr

ease

d se

dim

enta

tion

in w

ater

wa

ys

• W

aste

wat

er d

isch

arge

in th

e en

viro

nmen

t

• M

aint

ain

vehi

cles

, mac

hine

ry a

nd e

quip

men

t in

good

con

ditio

n in

ord

er to

avo

id le

aks

and

disc

harg

e of

ha

zard

ous

mat

eria

ls

• T

ake

all p

reca

utio

ns d

urin

g th

e re

fuel

ling

of v

ehic

les,

mac

hine

ry a

nd p

umps

, and

forb

id th

e re

fuel

ling

near

wat

er b

odie

s •

Ens

ure

a sa

fe m

anag

emen

t of h

azar

dous

mat

eria

ls

• A

void

cro

ssin

g pe

rman

ent w

ater

wa

ys

• W

hen

it is

nec

essa

ry to

cro

ss a

per

man

ent w

ater

wa

y, lo

cate

the

cros

sing

whe

re th

e ba

nks

are

stab

le

and

the

mos

t nar

row

, use

as

muc

h as

pos

sibl

e ex

istin

g in

fras

truc

ture

s or

inst

all c

ulve

rts

with

ade

quat

e su

ppor

ting

capa

city

, and

at t

he e

nd o

f wor

ks, t

ake

away

all

tem

pora

ry in

stal

latio

ns u

sed

for

cros

sing

•

Do

not h

ampe

r dr

aina

ge o

f su

rfac

e w

ater

and

pla

n fo

r re

stor

atio

n m

easu

res

afte

r co

nstr

uctio

n •

Pla

n w

orks

in a

reas

pro

ne to

floo

ding

out

side

the

rain

y se

ason

•

Inst

all a

ppro

pria

te s

anita

ry f

acili

ties

in w

orke

rs’ c

amps

So

ils

• S

oil e

rosi

on

• S

oil c

ompa

ctio

n •

Soi

l con

tam

inat

ion

• C

hang

e in

loca

l top

ogra

phy

• S

tabi

lise

the

soil

in o

rder

to r

educ

e po

tent

ial e

rosi

on

• A

t the

end

of c

onst

ruct

ion

wor

ks, l

evel

off

the

soils

and

faci

litat

e ve

geta

tion

rege

nera

tion

•

Lim

it th

e ci

rcul

atio

n of

hea

vy m

achi

nery

to m

inim

al a

reas

•

Use

exi

stin

g bo

rrow

pits

rat

her

than

cre

atin

g ne

w o

nes.

•

Afte

r th

e w

orks

, res

tore

bor

row

pits

by

stab

ilisi

ng s

lope

s an

d fa

cilit

atin

g ve

geta

tion

rege

nera

tion

E

cosy

stem

s

• E

ncro

achm

ent i

n ec

olog

ical

ly s

ensi

tive

area

s •

Red

uctio

n of

the

biod

iver

sity

•

Est

ablis

h a

prot

ectio

n pe

rimet

er a

roun

d ec

olog

ical

ly s

ensi

tive

area

s su

ch a

s w

ater

bod

ies,

wild

life

habi

tat,

drin

king

wat

er s

ourc

es, s

lope

s pr

one

to e

rosi

on a

nd w

etla

nds

• M

inim

ise

the

leng

th o

f w

orks

in s

ensi

tive

area

s

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

T

ecsu

lt In

tern

atio

nal

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

8-4 P

ote

nti

al a

dve

rse

and

ben

efic

ial I

mp

acts

M

itig

atio

n a

nd

en

han

cem

ent

mea

sure

s

V

eget

atio

n

• Lo

ss o

f veg

etat

ion

and

fore

st p

rodu

cts

• D

amag

es to

tree

s •

Cle

arly

mar

k th

e la

nd c

lear

ing

area

s an

d op

timiz

e th

e st

ruct

ures

loca

tion

in o

rder

to m

inim

ize

defo

rest

atio

n •

Pro

tect

the

tree

s fr

om m

achi

nery

and

car

ry o

ut th

e op

erat

ions

in s

uch

a w

ay

as to

pre

vent

the

tree

s to

fa

ll ou

tsid

e of

the

logg

ing

area

s

• Im

med

iate

ly a

fter

the

wor

ks, f

acili

tate

veg

etat

ion

rege

nera

tion

with

ada

pted

spe

cies

to th

e pr

ojec

t are

a

• M

inim

ize

vege

tatio

n de

stru

ctio

n al

ong

wat

er b

odie

s.

W

ildlif

e

• D

istu

rban

ce o

f w

ildlif

e

• F

ragm

enta

tion

and

degr

adat

ion

of w

ildlif

e ha

bita

t

• F

orbi

d w

orke

rs to

hun

t and

fis

h in

the

proj

ect a

rea

•

Pla

n w

orks

out

side

of t

he r

epro

duct

ion

perio

d of

wild

life

pres

ent i

n th

e pr

ojec

t are

a •

Pla

n co

rrid

ors

for

mig

ratin

g do

mes

tic a

nd w

ild a

nim

als

L

and

use

• Lo

ss o

f hou

sing

, ass

ets

or a

cces

s to

ass

ets

(pro

duct

ive

land

s an

d na

tura

l res

ourc

es)

and,

in

com

e so

urce

s •

Cha

nge

in la

nd o

wne

rshi

p rig

hts

and

uses

al

ong

acce

ss r

oads

and

rig

hts-

of-w

ay, w

hich

ca

n le

ad to

soc

ial c

onfli

cts.

•

Dis

turb

ance

or

loss

of t

he te

rrito

ry fo

r in

dige

nous

peo

ples

•

Dis

turb

ance

of o

ther

land

use

rs a

ctiv

ities

•

Dev

elop

men

t of a

gric

ultu

ral a

nd p

asto

ral l

and

due

to a

n ea

sier

acc

ess.

•

Acc

ess

to n

ew te

rrito

ry le

adin

g to

an

incr

ease

d pr

essu

re o

n na

tura

l res

ourc

es.

• T

ake

into

acc

ount

the

vario

us la

nd u

ses

whi

le d

esig

ning

the

proj

ect i

n or

der

to m

inim

ise

the

loss

of

land

, par

ticul

arly

pro

duct

ive

land

. •

Exp

lore

all

alte

rnat

ives

to a

vert

or

min

imiz

e re

settl

emen

ts

• P

lan

land

use

alo

ng a

cces

s ro

ads

and

right

s-of

-way

in o

rder

to p

rese

rve

agric

ultu

ral a

nd p

asto

ral l

and

• In

volv

e tr

aditi

onal

aut

horit

ies

in th

e de

sign

of t

he p

roje

ct, p

artic

ular

ly in

def

inin

g th

e rig

hts-

of-w

ay.

• E

labo

rate

and

impl

emen

t a r

eset

tlem

ent p

lan

to im

prov

e or

at l

east

res

tore

, affe

cted

peo

ple

livin

g co

nditi

ons

and

stan

dard

s •

Pro

vide

equ

ival

ent o

r be

tter

hous

ing

and

acco

mpa

nyin

g fa

cilit

ies

to in

volu

ntar

ily d

ispl

aced

peo

ple

in

acco

rdan

ce w

ith c

onsu

ltatio

n re

sults

. •

In a

ccor

danc

e w

ith p

riorit

ies

of d

ispl

aced

peo

ple,

ens

ure

appr

opria

te fu

ndin

g fo

r pr

oduc

tive

land

co

mpe

nsat

ion

to p

eopl

e ow

ning

or

occu

pyin

g/cu

ltiva

ting

the

land

and

to p

eopl

e liv

ing

from

exp

loita

tion

of n

atur

al r

esou

rces

•

Inte

grat

e th

e pr

ojec

t inf

rast

ruct

ures

into

land

use

and

dev

elop

men

t pla

ns.

• E

labo

rate

an

Indi

geno

us P

eopl

es P

lan

(IP

P)

• C

oord

inat

e pr

ojec

t wor

ks w

ith th

e va

rious

land

use

rs

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

Tec

sult

Inte

rnat

iona

l

8-5

Po

ten

tial

ad

vers

e an

d b

enef

icia

l Im

pac

ts

Mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

Q

ual

ity

of

life

• P

oor

livin

g co

nditi

ons

for

wor

kers

•

Red

uctio

n in

the

qual

ity o

f life

due

to

nuis

ance

s su

ch a

s no

ise,

dus

t and

traf

fic

• Im

prov

emen

t in

qual

ity o

f life

due

to n

ew

econ

omic

opp

ortu

nitie

s •

Soc

ial c

onfli

cts

due

to th

e ve

nue

of n

ew

settl

ers

• D

isru

ptio

n of

indi

geno

us p

eopl

e’s

lifes

tyle

an

d cu

stom

s •

Dis

rupt

ion

of s

ocia

l and

cul

tura

l val

ues

and

patte

rn fo

r al

l pro

ject

aff

ecte

d pe

rson

s •

Con

stra

ints

in a

djus

ting

to r

eset

tlem

ent a

nd

chan

ges

in p

rodu

ctiv

e ac

tiviti

es.

• P

opul

atio

n pr

essu

re d

ue to

the

arriv

al o

f m

igra

nts

attr

acte

d by

new

eco

nom

ic

oppo

rtun

ities

.

• P

rovi

de w

orke

rs w

ith p

rope

r ac

com

mod

atio

ns in

san

itary

con

ditio

ns a

nd p

lan

acco

mm

odat

ion

for

cam

p fo

llow

ers

• E

stab

lish

a fo

rmal

con

sulta

tion

mec

hani

sm w

ith lo

cal a

utho

ritie

s to

dis

cuss

issu

es d

istu

rbin

g in

habi

tant

s an

d to

find

sol

utio

ns s

atis

fyin

g al

l par

ties

• T

rain

wor

kers

in th

e fie

ld o

f env

ironm

enta

l pro

tect

ion

• Im

plem

ent a

n ad

equa

te c

omm

unic

atio

n pl

an to

info

rm p

rimar

y st

akeh

olde

rs

• A

t the

end

of

wor

ks, c

lean

up

and

rest

ore

the

cons

truc

tion

area

•

Com

pens

ate

for

impo

rtan

t res

idua

l im

pact

s •

Avo

id b

uild

ing

acce

ss r

oads

acr

oss

indi

geno

us p

eopl

e tr

acks

or

path

way

s.

• F

avou

r re

settl

emen

t are

as a

llow

ing

indi

geno

us p

eopl

e to

pre

serv

e th

eir

lifes

tyle

and

cus

tom

s.

• E

nsur

e ap

prop

riate

sup

port

from

soc

ial s

ervi

ces

to fa

cilit

ate

the

tran

sitio

n an

d to

pre

vent

con

flict

s w

ithin

fa

mili

es o

r am

ong

grou

ps.

H

ealt

h

• In

crea

sed

risk

of a

ccid

ents

on

wor

king

site

s an

d ac

cess

roa

ds

• In

crea

se in

com

mun

icab

le d

isea

ses

prev

alen

ce r

ates

, esp

ecia

lly H

IV

• D

evel

op, c

omm

unic

ate

and

impl

emen

t saf

ety

and

prev

entiv

e m

easu

res

for

wor

kers

, prim

ary

stak

ehol

ders

and

the

popu

latio

n (s

uch

as tr

affic

cal

min

g de

vice

s)

• C

ontr

ol a

cces

s to

wor

king

site

s

• In

stal

l and

mai

ntai

n ap

prop

riate

sig

ns

• In

crea

se a

war

enes

s on

sex

ually

tran

smitt

ed d

isea

ses

and

prov

ide

cond

oms

at lo

w c

ost t

o m

en a

nd

wom

en

• P

rovi

de m

alar

ia p

roph

ylax

is a

nd im

preg

nate

d be

dnet

s to

wor

kers

and

cam

p fo

llow

ers,

in m

alar

ia-p

rone

re

gion

s •

Whe

neve

r po

ssib

le e

mpl

oy

wom

en r

athe

r th

an m

en, o

r m

arrie

d m

en w

ith n

earb

y fa

mili

es

• F

avou

r la

bour

cam

p si

tes

that

are

not

loca

ted

too

clos

e to

vill

ages

•

Pro

vide

ade

quat

e he

alth

ser

vice

s to

res

pond

to a

dditi

onal

nee

ds

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

T

ecsu

lt In

tern

atio

nal

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

8-6 P

ote

nti

al a

dve

rse

and

ben

efic

ial I

mp

acts

M

itig

atio

n a

nd

en

han

cem

ent

mea

sure

s

E

con

om

ic a

ctiv

itie

s

• Jo

b op

port

uniti

es

• In

crea

sed

reve

nues

for

loca

l sho

pkee

pers

an

d st

allh

olde

rs

• Lo

ss o

f sub

sist

ence

or

inco

me

sour

ces

due

to la

nd a

cqui

sitio

n an

d re

settl

emen

t

• G

ive

pref

eren

ce to

loca

l lab

our

(men

and

wom

en)

• F

avou

r lo

cal p

urch

ases

as

muc

h as

pos

sibl

e (f

ood,

bas

ic m

ater

ial)

• O

ffer

com

pens

atio

n or

alte

rnat

ive

reve

nue

oppo

rtun

ities

to a

ffec

ted

peop

le a

s pa

rt o

f the

res

ettle

men

t pl

an

• P

rovi

de te

mpo

rary

food

sup

plie

s to

invo

lunt

arily

dis

plac

ed p

eopl

e, a

s ne

eded

. •

Pro

vide

com

plem

enta

ry tr

aini

ng /s

uppo

rt to

men

and

wom

en to

faci

litat

e ad

just

men

t dur

ing

the

tran

sitio

n pe

riod.

Infr

astr

uct

ure

s

• D

evel

opm

ent o

f new

infr

astr

uctu

res

or

impr

ovem

ent t

o ex

istin

g on

es

• D

egra

datio

n of

exi

stin

g in

fras

truc

ture

s •

Insu

ffic

ient

infr

astr

uctu

res

to r

espo

nd to

w

orke

rs’ n

eeds

• B

efor

e co

nstr

uctio

n, c

onsu

lt co

ncer

ned

min

istr

ies

to v

erify

the

adeq

uacy

of t

he p

ropo

sed

infr

astr

uctu

res

• In

volv

e th

e po

pula

tion

(men

and

wom

en)

in th

e m

aint

enan

ce a

nd m

anag

emen

t of t

he n

ew

infr

astr

uctu

res

to a

ssur

e th

eir

sust

aina

bilit

y •

Pro

tect

exi

stin

g in

fras

truc

ture

s an

d en

sure

thei

r re

pair

in c

ase

of d

amag

es

• P

rovi

de d

omes

tic w

ater

sup

plie

s to

sat

isfy

all

peop

le’s

nee

ds

• E

nsur

e ad

equa

te e

nerg

y su

pplie

s

Cu

ltu

ral h

erit

age

• D

egra

datio

n or

des

truc

tion

of c

omm

unity

cu

ltura

l her

itage

•

Bef

ore

cons

truc

tion,

car

ry o

ut a

n ar

chae

olog

ical

sea

rch

in th

e po

tent

ial a

reas

con

tain

ing

arte

fact

s an

d pr

eser

ve a

ny d

isco

vere

d ar

tefa

ct

• N

egot

iate

with

trad

ition

al a

utho

ritie

s th

e pr

eser

vatio

n of

impo

rtan

t cul

tura

l, re

ligio

us, h

isto

rical

and

ae

sthe

tic s

ites

and

reso

urce

s an

d ag

ree

on p

oten

tial c

ompe

nsat

ion

for

the

com

mun

ities

•

Dur

ing

cons

truc

tion,

ens

ure

an a

rcha

eolo

gica

l sur

veill

ance

in th

e po

tent

ial a

reas

con

tain

ing

arte

fact

s an

d in

cas

e of

a d

isco

very

, adv

ise

the

conc

erne

d au

thor

ities

•

Invo

lve

trad

ition

al a

utho

ritie

s in

mon

itorin

g cu

ltura

l, re

ligio

us, h

isto

rical

and

aes

thet

ic s

ites

and

reso

urce

s du

ring

cons

truc

tion

activ

ities



8-7

8.2 Hydropower projects

8.2.1 General characteristics of hydropower projects

Hydroelectric projects consist of dams, reservoirs, powerhouses and related structures such

as switchyards for the generation of electricity. They require the construction of a

transmission line to convey the power to its users. Electric power transmission lines are

discussed further.

The dam and reservoir may be used for other purposes than electricity generation such as

irrigation, flood control, water supply, recreation, fisheries, navigation and sediment control.

However, these uses shall be well examined in order to ensure that the priority use

(electricity) is optimised.

The construction and operation of dams and reservoirs include several activities or

components that can potentially induce significant environmental and social impacts:

• River diversion, including the construction of a diversion canal.

• Land clearing and relocation/demolition of existing infrastructures in the future reservoir.

• Construction of secondary dykes.

• Population resettlement.

• Construction of access roads.

Hydropower dam in concrete




8-8

• Construction, maintenance and closure of labour camps and other temporary infrastructures.

• Construction of the dam: digging, blasting, construction of foundations, transportation and storage of material, operation of heavy machinery, etc.

• Exploitation of borrow pits (on-site and off-site).

• Activities associated with construction works such as the manipulation of fuel, waste and hazardous materials, production of wastewater, etc.

• Flooding and management of the reservoir.

Dams are built on a natural waterway in order to impound water. They can be made of

concrete, rocks or earth. Dykes, generally in rocks or earth, intend to prevent water stocked

in the reservoir to flow out of the reservoir through secondary valleys.

In general, a powerstation includes the following hydraulic and electric components:

• The water intake in the reservoir, which is normally equipped with grills to prevent debris entering into the system.

• The water conveyance canal that brings the water to the pressure pipeline.

• The pressure pipeline in which the water is directed to a turbine on a steep slope.

• The turbine consisting of a hydraulic wheel turning with the pressure of the water; the electricity is produced with an alternator, before being directed to electric transformers and a substation.

• Surging facilities to take care of overpressures as a result of sudden opening/closing of valves/gates.

• The water discharge canal that brings the water downstream into the waterway.

A hydroelectric complex is normally equipped with spillway, which are structures allowing the

water to flow out of the reservoir when the maximum capacity is reached.

The design of hydropower projects varies according to local characteristics and energy

needs. For example, to avoid problems related to the creation of a reservoir, the construction

of a run-of-river powerstation might be preferred.



8-9

8.2.2 Environmental issues related to hydropower projects

Changes in the river system

Building a dam on a river and creating a reservoir can cause important impacts on the

hydrology and limnology of the river system. The modification of the river water flow alters

the quality, quantity and use of water, aquatic habitat, and sedimentation dynamics in the

river basin. Major changes in the flow patterns downstream of the dam may occur because

water storage and releases are managed for power demand rather than for downstream

ecological balance.

The decomposition of organic matter on lands flooded by the presence of the dam creates

an environment rich in nutrients. In addition to organic matter leaching from the watershed

upstream of the reservoir, this organic input may enhance the growth of invasive aquatic

weeds, such as water lettuce and water hyacinth, which can become real nuisances to the

dam outflows, irrigation canals, fisheries, recreation, and navigation. Moreover, if the flooded

land is heavily wooded, as it can be the case in the Nile Equatorial lakes countries, and not

sufficiently cleared prior to flooding, decomposition will reduce oxygen levels in the water,

thus affecting aquatic life (fisheries) and drinking water supplies, especially downstream of

the dam, due to the production of hydrogen sulphide and methane, a greenhouse gas.

Suspended particles normally carried by the river settle in the reservoir, thus limiting its

storage capacity and lifetime, and robbing downstream floodplains agricultural areas of silt

rich in nutrients to sustain productivity. Moreover, the release of waters free of sediment can

result in the scouring of downstream riverbeds and banks.

For hydroelectric projects in Tanzania and Kenya located on rivers flowing in the Indian

Ocean, the habitat of aquatic wildlife in estuaries may be affected by the changes in water

flow and quality due to variations in the salinity balance. Changes in nutrient levels and the

degradation of water quality may also generate impacts on the productivity of an estuary.

Finally, hydroelectric projects in NBI countries may alter the levels of groundwater both

above and below the reservoir.




8-10

Fisheries and wildlife

The changes in the river system may adversely affect fisheries, upstream and downstream

of the dam, through the degradation of water quality, loss of spawning grounds and barriers

to fish migration. However, the reservoir may sometimes enhance the development of

fisheries.

The greatest impact on wildlife will come from loss of habitat resulting from reservoir filling

and land-use changes in the watershed. Migratory patterns of wildlife may be disrupted by

the reservoir and associated developments. Poaching and eradication of species considered

to be agricultural pests have a more selective effect. Aquatic fauna, including waterfowl,

reptiles, and amphibian populations are expected to increase in the reservoir.

8.2.3 Social issues related to hydropower projects

Non-resident workers

One major issue related to hydropower projects involves the arrival of hundred of workers for

building the plant. This can have a significant adverse effect on the existing community

infrastructure: school, police, fire protection, medical facilities, and so forth. Moreover, the

influx of workers from other localities or regions may have a serious impact on the

transmission of sexually transmitted infections such as HIV/AIDS and disrupt local social and

cultural values, as well as the quality of life of the residents.

Agriculture

The selection of dam site must take into account the agricultural potential of the soils that will

be lost under the flooded areas. Indeed, sites with the lowest soil potential shall be preferred

in order to minimise the impacts for farmers. If the selected dam site has many good soil

potential areas, the flooded surface should be minimized.

During its design, engineers must conceive a dam with a reservoir large enough to store

sufficient water not only for electricity production but also for irrigation purposes, upstream

and downstream of the dam. Whenever possible, design parameters should consider the

exploitation of the marling zone for pasture and/or agricultural production. Marling zone is

the portion of land flooded at the highest water level but not flooded at the lowest water level



8-11

of the reservoir. Because of the growth period necessary between seeding and harvesting,

only the upland portion of the marling zone can be profitably used.

Furthermore, electricity produced at the dam could also contribute to the sustainable

development of the agricultural sector by improving agricultural product conservation (cold

chain for vegetable, fruit, meat, fish, etc.) and transformation (juice manufacturing, cannery,

dairy). Finally, hydroelectricity can also be used as an energy source for water pumps and

this way reduce fuel consumption which contributes to air pollution (particle emission) and

climatic changes (greenhouse effect).

Resettlement

Though the powerhouses and all related infrastructures involve land acquisition and

involuntary resettlement, large dams and reservoirs often entail complex and difficult

resettlement operations. If a dam is constructed and a large reservoir is produced, the

reservoir may flood an entire river valley. Riverine fisheries and traditional floodplain

agriculture are disrupted.

In NBI countries, river valleys and river banks are usually densely inhabited. The floodplains

are vast areas of great importance for population. For instance, the population density in the

area of the Nile Basin in DRC is approximately five times higher than in the rest of the

country. In Kenya, 40% of the country’s population live in the Nile basin though this area

constitutes only 10% of the country.

In NBI countries, rural people depend on water resources for their living: agriculture,

gardening, fishing, stockbreeding, drinking water, etc. The people have a land-base

livelihood. River banks are generally fertile lands. They are often inhabited by farmers whose

families have worked the land for generations.

Inundation of a valley will force people very attached to their land to move out. The

relocation of the people affected is difficult since upland areas are generally already used by

other farmers living next to the valley. Finding agricultural sites of vocational advantage or

productive potential at least equivalent of those of the pre-displacement sites is very hard.

The traditional means of livelihood of the affected people are difficult to restore. In addition,

these rural people are often illiterate and their skills are likely to be location specific. The




8-12

transition to alternative means of earning a livelihood thru training and job opportunities is

not an easy process.

The reservoir will not only entail relocation. It will also disrupt the use of the river by people

living outside the edge of the river banks. Access to common-property resources such as

fishes in the downstream stretches of the river or forests in the surrounding area of the

proposed reservoir will be compromised. The resettlement plan will need to compensate all

these losses of incomes or means of livelihood whether or not the affected people must

move to another location.

Resettlement issues related to dam construction and reservoir being very important, the

selection of dams for construction must be based on a comprehensive analysis of

alternatives. The severity of resettlement impacts will be a key criterion for screening these

alternatives.

8.2.4 Potential impacts of hydropower projects and mitigation measures

Over all past experiences related to hydropower development, the environmental community

has made substantial improvements to understand the environmental and social impacts of

dams. The management of environmental issues arising from hydropower is undergoing

rapid improvement. Targeted studies and monitoring programs have identified viable

mitigation options and provided long-term assessments of their effectiveness. Changes in

the approach to hydroelectric project planning and design have resulted in the optimisation

of beneficial impacts and the reduction of adverse impacts.

Table 8.2 below summarises the environmental and social impacts specific to hydroelectric

projects, and presents the common measures to offset, minimise, mitigate or compensate

these impacts. General impacts and mitigation measures related to the construction of

hydroelectric projects have been listed in Section 8.1 above.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

Tec

sult

Inte

rnat

iona

l

8-13

Tab

le 8

.2

Po

ten

tial

imp

acts

, mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

spec

ific

to

hyd

roel

ectr

ic p

roje

cts

Po

ten

tial

ad

vers

e an

d b

enef

icia

l im

pac

ts

Mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

W

ater

• A

ltera

tion

of w

ater

flow

dow

nstr

eam

impa

iring

ag

ricul

tura

l act

iviti

es o

n flo

odpl

ains

.

• F

lood

con

trol

.

• P

rolif

erat

ion

of a

quat

ic w

eeds

in r

eser

voir

and

dow

nstr

eam

impa

iring

dam

dis

char

ge, i

rrig

atio

n sc

hem

es, n

avig

atio

n an

d fis

herie

s.

• D

egra

datio

n of

the

rese

rvoi

r w

ater

qua

lity.

•

Sal

t wat

er in

trus

ion

in e

stua

ry a

nd u

pstr

eam

.

• C

lear

the

vege

tatio

n be

fore

floo

ding

the

rese

rvoi

r.

• A

pply

app

ropr

iate

wee

d co

ntro

l mea

sure

s.

• C

ontr

ol la

nd u

ses,

was

tew

ater

dis

char

ge a

nd a

gric

ultu

ral c

hem

ical

inpu

ts in

wat

ersh

ed.

• Li

mit

rete

ntio

n tim

e of

wat

er in

res

ervo

ir.

• M

aint

ain

a m

inim

um fl

ow to

pre

vent

sal

t-w

ater

intr

usio

n.

S

oils

• Lo

ss o

f pro

duct

ive

soils

by

flood

ing.

•

Sco

urin

g of

riv

erbe

d do

wns

trea

m o

f the

dam

due

to

the

low

con

tent

of s

edim

ents

in w

ater

. •

Sal

inis

atio

n of

floo

dpla

in s

oils

.

• A

void

are

as s

ensi

tive

to e

rosi

on.

• C

arry

out

the

cons

truc

tion

wor

ks in

the

dry

seas

on.

• Li

mit

the

circ

ulat

ion

of h

eavy

mac

hine

ry to

min

imal

are

as.

• A

void

est

ablis

hing

acc

ess

road

s al

ong

stee

p sl

opes

; ins

tead

, loc

ate

the

acce

ss r

oads

pe

rpen

dicu

larly

or

diag

onal

ly to

the

slop

e.

• U

se e

xist

ing

borr

ow p

its r

athe

r th

an c

reat

ing

new

one

s; a

fter

the

wor

ks, r

esto

re b

orro

w p

its b

y st

abili

sing

slo

pes

and

faci

litat

ing

vege

tatio

n re

gene

ratio

n.

• S

tabi

lise

the

soils

in o

rder

to r

educ

e po

tent

ial e

rosi

on.

• A

t the

end

of c

onst

ruct

ion

wor

ks, l

evel

off

the

soils

and

faci

litat

e ve

geta

tion

re-g

ener

atio

n.

• Im

plem

ent i

nteg

rate

d w

ater

shed

man

agem

ent i

n or

der

to c

ontr

ol s

oil e

rosi

on.

• P

reve

nt la

nd c

lear

ing

in w

ater

shed

and

faci

litat

e th

e re

fore

stat

ion

of c

lear

ed a

reas

. •

Des

ign

the

wor

ks in

ord

er to

rel

ease

sed

imen

ts (

hydr

aulic

rel

ease

).

• D

redg

e ac

cum

ulat

ed s

edim

ents

. •

Reg

ulat

e w

ater

flow

to m

inim

ise

soil

salin

isat

ion.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

T

ecsu

lt In

tern

atio

nal

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

8-14

Po

ten

tial

ad

vers

e an

d b

enef

icia

l im

pac

ts

Mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

B

iod

iver

sity

• D

estr

uctio

n of

eco

syst

ems

of p

artic

ular

inte

rest

. •

Deg

rada

tion

of e

colo

gica

lly s

ensi

tive

area

s.

• Lo

ss o

f rar

e or

thre

aten

ed s

peci

es.

• D

esig

n th

e pr

ojec

t by

taki

ng in

to a

ccou

nt e

cosy

stem

s of

par

ticul

ar in

tere

st a

nd e

colo

gica

lly s

ensi

tive

area

s.

• P

rote

ct e

qual

are

as o

f eco

syst

ems

of p

artic

ular

inte

rest

to o

ffse

t los

ses.

•

Est

ablis

h a

perim

eter

of p

rote

ctio

n ar

ound

sen

sitiv

e ec

osys

tem

s su

ch a

s w

etla

nds

and

uniq

ue

habi

tats

she

lterin

g en

dang

ered

spe

cies

. •

Avo

id fl

oodi

ng w

etla

nds

and

prot

ecte

d ar

eas.

Veg

etat

ion

• D

estr

uctio

n of

veg

etat

ion.

•

Loss

of f

ores

t pro

duct

s (f

uelw

ood,

tim

ber,

non

- tim

ber

fore

st p

rodu

cts)

.

• M

inim

ise

the

land

cle

arin

g ar

eas

arou

nd th

e re

serv

oir.

•

Rec

uper

ate

the

fore

st p

rodu

cts

extr

acte

d fr

om la

nd c

lear

ing

and

iden

tify

mec

hani

sms

to d

istr

ibut

e th

e pr

oduc

ts to

the

loca

l pop

ulat

ion.

Wild

life

• Lo

ss o

f wild

life

and

fish

habi

tats

. •

Dis

rupt

ion

of w

ildlif

e m

igra

tions

. •

Adv

erse

impa

ct o

n fis

hes

due

to c

hang

es in

wat

er

flow

and

dis

rupt

ion

of fi

sh m

igra

tions

. •

Cre

atio

n of

res

ervo

ir fis

herie

s.

• D

esig

n th

e pr

ojec

t by

taki

ng in

to a

ccou

nt w

ildlif

e re

prod

uctio

n ar

eas

and

mig

ratio

n co

rrid

ors.

•

Min

imis

e se

dim

enta

tion

in s

paw

ning

gro

unds

dow

nstr

eam

. •

Rel

ocat

e an

imal

s be

fore

floo

ding

the

rese

rvoi

r.

• M

aint

ain

a m

inim

um w

ater

flow

for

fishe

s.

• P

rovi

de a

ppro

pria

te m

eans

of p

assa

ge fo

r fis

hes.

•

Pre

serv

e sp

awni

ng g

roun

ds.

• F

acili

tate

the

deve

lopm

ent o

f cul

ture

fish

erie

s in

res

ervo

ir as

a m

ean

of c

ompe

nsat

ion.

Hea

lth

ou

tco

mes

• C

hang

es in

exp

osur

e to

wat

er b

orne

dis

ease

s (d

iarr

hoea

and

cho

lera

ass

ocia

ted

with

mis

use

of

rese

rvoi

r w

ater

for

dom

estic

pur

pose

s).

• C

hang

es in

exp

osur

e to

wat

er r

elat

ed d

isea

ses

(mal

aria

, onc

hoce

rcia

sis,

fila

riasi

s as

soci

ated

with

in

crea

ses

in v

ecto

r br

eedi

ng a

nd c

onta

ct).

•

Impr

ovem

ent i

n he

alth

con

ditio

ns d

ue to

bet

ter

acce

ss to

dom

estic

wat

er.

• In

crea

sed

risk

of d

row

ning

.

• P

rovi

de a

ppro

pria

te d

omes

tic w

ater

sup

ply

to a

ddre

ss a

dditi

onal

nee

ds.

• F

acili

tate

the

impl

emen

tatio

n of

app

ropr

iate

latr

ines

and

oth

er s

anita

tion

faci

litie

s.

• In

form

atio

n, e

duca

tion

and

com

mun

icat

ion

abou

t saf

e us

es o

f res

ervo

ir w

ater

and

occ

upat

iona

l sa

fety

. •

Env

ironm

enta

l man

agem

ent f

or v

ecto

r co

ntro

l; co

ntac

t avo

idan

ce v

ia s

ettle

men

t loc

atio

n an

d de

sign

, use

of b

edne

ts a

nd r

epel

lent

s, c

onst

ruct

ion

of je

tties

; rap

id d

iagn

osis

and

tre

atm

ent;

foca

l in

sect

icid

e an

d m

ollu

scic

ide

appl

icat

ion.

•

Str

engt

hen

med

ical

ser

vice

s to

ens

ure

rapi

d di

agno

sis

and

trea

tmen

t and

enh

ance

dia

gnos

tic s

kills

, ta

king

into

con

side

ratio

n th

e pa

rtic

ular

nee

ds o

f men

and

wom

en.

• P

lan

lifes

avin

g eq

uipm

ent a

nd m

easu

res.

•

Ens

ure

that

dow

nstr

eam

vill

ages

are

info

rmed

in a

dvan

ce o

f wat

er fl

uctu

atio

ns.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

Tec

sult

Inte

rnat

iona

l

8-15

Po

ten

tial

ad

vers

e an

d b

enef

icia

l im

pac

ts

Mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

S

oci

o-e

con

om

ic d

evel

op

men

t

• D

isru

ptio

n of

exi

stin

g ac

tiviti

es p

artic

ular

ly

flood

plai

n ag

ricul

ture

and

art

isan

al fi

sher

ies

dow

nstr

eam

. •

Dis

rupt

ion

of a

ctiv

ities

in c

atch

men

t are

as,

part

icul

arly

if th

ey r

epre

sent

pot

entia

l sou

rces

of

pollu

tion

for

the

rese

rvoi

r.

• In

duce

d de

velo

pmen

t due

to n

ew o

ppor

tuni

ties

such

as

in fi

sher

ies

and

irrig

atio

n.

• O

ffer

appr

opria

te c

ompe

nsat

ions

or

alte

rnat

ive

inco

me

oppo

rtun

ities

to m

en a

nd w

omen

hav

ing

a re

duce

d ac

cess

to o

r lo

osin

g pr

oduc

tive

mea

ns.

• W

hene

ver

poss

ible

, giv

e an

opp

ortu

nity

to m

en a

nd w

omen

who

are

dire

ctly

loos

ing

from

the

proj

ects

to b

enef

it fr

om n

ew jo

bs o

r re

venu

e-ge

nera

ting

oppo

rtun

ities

(e.

g. in

duce

d de

velo

pmen

t).

L

and

use

• Lo

ss o

f pro

duct

ive

land

and

nat

ural

res

ourc

es in

flo

oded

are

as.

• In

suffi

cien

t ara

ble

land

to s

atis

fy s

ubsi

sten

ce

agric

ultu

ral n

eeds

. •

Loss

of t

errit

ory

for

loca

l pop

ulat

ions

. •

Riv

alry

ass

ocia

ted

with

inco

mpa

tible

wat

er u

ses

upst

ream

and

dow

nstr

eam

.

• T

ake

into

acc

ount

the

vario

us la

nd u

ses

whi

le d

esig

ning

the

proj

ect i

n or

der

to m

inim

ise

loss

of l

and,

pa

rtic

ular

ly p

rodu

ctiv

e la

nd.

• C

oord

inat

e pr

ojec

t wor

ks w

ith th

e va

rious

land

use

rs.

• In

volv

e tr

aditi

onal

aut

horit

ies

in th

e de

sign

of t

he p

roje

ct.

• W

here

ver

poss

ible

, com

pens

ate

the

loss

of l

and

by

prot

ectin

g an

equ

ival

ent l

and

area

in th

e re

gion

. •

Pre

vent

food

inse

curit

y b

y al

loca

ting

land

and

cre

dit t

o fo

od c

ropp

ing.

•

Reg

ulat

e da

m r

elea

ses

to p

artia

lly r

eplic

ate

natu

ral f

lood

ing

regi

me.

•

Cle

arly

def

ine

wat

er r

ight

s an

d es

tabl

ish

wat

er u

ser

fees

in c

onsu

ltatio

n w

ith c

once

rned

st

akeh

olde

rs.

In

fras

tru

ctu

res

and

ser

vice

s

• D

estr

uctio

n of

exi

stin

g in

fras

truc

ture

s in

the

rese

rvoi

r.

• R

elia

ble

wat

er s

uppl

y fo

r irr

igat

ion,

dom

estic

and

ot

her

uses

. •

Con

tam

inat

ion

of d

omes

tic w

ater

sup

plie

s du

e to

th

e m

ism

anag

emen

t of t

he r

eser

voir.

•

Incr

ease

d pr

essu

res

on e

xist

ing

soci

al s

ervi

ces

due

to m

igra

tion.

•

Incr

ease

d pr

ices

of s

ervi

ces

(wat

er, e

lect

ricity

, et

c.).

• C

onsu

lt co

ncer

ned

adm

inis

trat

ions

to v

erify

the

adeq

uacy

of p

ropo

sed

new

infr

astr

uctu

res.

•

Invo

lve

the

loca

l pop

ulat

ion

in th

e m

aint

enan

ce a

nd m

anag

emen

t of n

ew in

fras

truc

ture

s to

ens

ure

thei

r su

stai

nabi

lity.

•

Ens

ure

adeq

uate

soc

ial s

ervi

ces,

incl

udin

g dr

inki

ng w

ater

sup

plie

s, fo

r ad

dres

sing

the

basi

c ne

eds

of th

e lo

cal p

opul

atio

ns a

nd m

igra

nts.

•

Ass

ist s

ocia

l ser

vice

adm

inis

trat

ions

in c

oord

inat

ing

thei

r ef

fort

s to

offe

r ad

ditio

nal s

ervi

ces

and

impr

ove

serv

ice

deliv

ery

if re

quire

d.

• E

stab

lish

qual

ity c

ontr

ol fo

r w

ater

sup

plie

s.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

T

ecsu

lt In

tern

atio

nal

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

8-16

Po

ten

tial

ad

vers

e an

d b

enef

icia

l im

pac

ts

Mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

C

ult

ura

l her

itag

e

• Lo

ss o

f site

s of

cul

tura

l, ar

chae

olog

ical

or

hist

oric

al

impo

rtan

ce b

y flo

odin

g of

ver

y la

rge

area

s.

• B

efor

e co

nstr

uctio

n, c

arry

out

an

arch

aeol

ogic

al s

earc

h in

the

pote

ntia

l are

as c

onta

inin

g ar

tefa

cts

and

pres

erve

dis

cove

red

arte

fact

s.

• N

egot

iate

with

trad

ition

al a

utho

ritie

s th

e pr

eser

vatio

n of

impo

rtan

t cul

tura

l, re

ligio

us, h

isto

rical

and

ae

sthe

tic s

ites

and

reso

urce

s an

d ag

ree

on p

oten

tial c

ompe

nsat

ion

for

the

com

mun

ities

. •

Dur

ing

cons

truc

tion,

ens

ure

an a

rcha

eolo

gica

l sur

veill

ance

in th

e po

tent

ial a

reas

con

tain

ing

arte

fact

s an

d in

cas

e of

a d

isco

very

, adv

ise

the

conc

erne

d au

thor

ities

. •

Invo

lve

trad

ition

al a

utho

ritie

s in

mon

itorin

g cu

ltura

l, re

ligio

us,

hist

oric

al a

nd a

esth

etic

site

s an

d re

sour

ces

durin

g co

nstr

uctio

n ac

tiviti

es.



8-17

8.3 Thermal power projects

8.3.1 General characteristics of thermal power projects

Thermal power projects may include gas, oil, coal or combined fuel-fired steam plants. The

major components of these projects include the power system itself and many associated

infrastructures: cooling system, stack gas cleaning equipment, fuel storage and handling

areas, fuel delivery systems, solid waste storage areas, workers compounds and electrical

substations. They also involve transmission lines and may require a pipeline in case of gas

power systems.

8.3.2 Environmental issues related to thermal power projects

Atmospheric emissions

Thermal power plants can constitute major air emission sources, including nitrogen oxides

(NOx), carbon monoxide (CO), sulphur dioxide (SO2), carbon dioxide (CO2) and particulates

(which may contain trace metals). These emissions, caused by the combustion of fuels, can

affect local and regional air quality and contribute to greenhouse gas emissions. The

dispersion and ground level concentrations of these emissions are determined by the

interaction of the characteristics of the plant stack, chemical characteristics of the emissions,

and local meteorological and topographical conditions.

Thermal power station




8-18

Wastewater

The bulk of wastewater from thermal power plants are typically clean cooling water and can

be either recycled or discharged into a surface water body. However, the impact of waste

heat on the water quality needs to be considered. Indeed, the increase in temperature can

affect the aquatic habitat for vegetation and wildlife. Other liquid waste, particularly of coal-

fired power plants, can also affect water quality.

8.3.3 Social issues related to thermal power projects

Non-resident workers

One of the major issues related to thermal power plants involves the arrival of hundred of

workers for building and operating the plant. This can have a significant adverse effect on

the existing community infrastructure: school, police, fire protection, medical facilities, and so

forth. Moreover, the influx of workers from other localities or regions may have a serious

impact on the transmission of sexually transmitted infections such as HIV/AIDS and disrupt

local social and cultural values, as well as the quality of life of the residents.

Agriculture

The selection of a construction site for a thermal power plant must take into account soil

potential (quality) of the land that will be lost for agriculture or pasture. For example, between

two sites having good technical characteristics, the one with the lowest soil potential shall be

selected. Thereby, it will be easier to compensate the losses with land having similar or

higher potential. When ever possible, plant designers should pay attention in minimizing the

surface area of the building in order to limit land lost.

Retrieving large volumes of water from rivers for industrial purposes can reduce significantly

the volume of water use for agriculture (mainly for land irrigation and livestock watering

purposes). For instance, water retrieved for a plant cooling system will be warmer when it

will be pumped back to the stream. This raise of water temperature can decrease plant

growth and disturb animals in the surrounding area. A planning phase must be done in order

to carefully identify all changes and opportunities for the local population.



8-19

Resettlement

Gas pipelines do not entail much land acquisition. If the pipelines are underground, they

involve restrictions on the use of the land inside their corridor. Therefore, they involve

compensations for the restrictions imposed.

Depending on the type of facility, location and size of the thermal power projects, the

resettlement impacts will vary significantly. The impacts are typical involuntary resettlements

due to land acquisition for the plant site and the associated facilities. Thermal power projects

have less severe resettlement impacts than those of dams. Security and safety

considerations may require a large land area but resettlement can be minimized thru site

selection. The plant may be installed in a vacant or scantily inhabited area. Like other

projects, thermal power projects may cause indirect displacement. Scantily inhabited areas

or isolated forests can shell resources used for instance by indigenous communities for their

livelihood. Therefore, the resettlement planning will pay careful consideration to participatory

assessment of social risks in the selection of the site process.

8.3.4 Impacts of thermal power projects and mitigation measures

Environmental impacts from thermal power plant operation are normally far more important

than those of construction. Impacts that need to be analysed and reported include those on

existing air, water, and soil quality, and the disposal of solid wastes. Impacts on the

vegetation, wildlife, local populations, and the health and safety of workers must also be

considered. According to the Thermal Power Plant Projects Environmental Impact

Assessment: Guidelines of the Southern African Power Pool (SAPP, 2001), primary sources

of environmental impacts of thermal power plant operation include:

• Fuel delivery, storage, and handling;

• Products of combustion;

• By-products of pollution control (ash, sludge, solid waste);

• Vehicular traffic;

• Fugitive emissions;

• Wastewater;

• Cooling water discharge, or salt drift in the case of the use of cooling towers; and

• Leaks and spills.




8-20

Table 8.3 below summarises the typical environmental and social impacts specific to thermal

power projects, and presents the common measures to offset, minimise, mitigate or

compensate these impacts. General impacts and mitigation measures related to the

construction of a thermoelectric facility are listed in Section 8.1.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

Tec

sult

Inte

rnat

iona

l

8-21

Tab

le 8

.3

Po

ten

tial

imp

acts

, mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

spec

ific

to

th

erm

al p

ower

pro

ject

s

Po

ten

tial

ad

vers

e an

d b

enef

icia

l im

pac

ts

Mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

A

mb

ien

t ai

r

• D

eter

iora

tion

of a

ir qu

ality

due

to s

tack

gas

es e

mitt

ed

follo

win

g fu

el c

ombu

stio

n.

• G

reen

hous

e ga

s em

issi

ons.

•

Odo

urs

due

to o

nsite

sew

age

or w

aste

wat

er tr

eatm

ent o

r du

e to

hig

h su

lphu

r co

nten

t in

fuel

.

• Lo

cate

the

faci

lity

awa

y fr

om s

ensi

tive

air

qual

ity r

ecep

tors

. •

Des

ign

high

er s

tack

s to

red

uce

grou

nd le

vel c

once

ntra

tions

of p

ollu

tant

s.

• U

se c

lean

fuel

, i.e

. low

sul

phur

coa

l.

• In

stal

l and

mai

ntai

n pr

oper

air

pollu

tion

cont

rol e

quip

men

t. •

Use

equ

ipm

ent c

ompl

ying

with

res

tric

tive

stan

dard

s.

Wat

er

• D

egra

datio

n of

sur

face

wat

er q

ualit

y du

e to

ther

moc

hem

ical

pl

ume

impa

cts,

gen

erat

ion

of s

anita

ry w

aste

str

eam

, and

in

crea

sed

run-

off d

ue to

rem

oval

of v

eget

atio

n.

• In

crea

se o

f the

sur

face

wat

er te

mpe

ratu

re d

ue to

coo

ling

wat

ers

disc

harg

e.

• D

raw

dow

n of

the

grou

ndw

ater

tabl

e in

cas

e of

sup

ply

of

proc

ess

wat

er fr

om w

ells

. •

Deg

rada

tion

of g

roun

dwat

er q

ualit

y du

e to

per

cola

tion

from

se

ttlin

g an

d sl

udge

pon

ds, l

eaka

ge o

f fue

ls, p

roce

ss

chem

ical

s, o

r ot

her

com

poun

ds u

sed

onsi

te.

• U

nder

take

the

colle

ctio

n an

d tr

eatm

ent o

f sew

age

and

orga

nic

was

te.

• D

ilute

was

tew

ater

at p

oint

of d

isch

arge

•

Use

bio

degr

adab

le o

r ot

herw

ise

read

ily tr

eata

ble

addi

tives

. •

Incr

ease

rec

yclin

g an

d re

use

of w

ater

. •

Use

alte

rnat

ive

heat

dis

sipa

tion

desi

gn (

ex. C

lose

d cy

cle

cool

ing)

. •

Dilu

te th

erm

al c

ondi

tion

by

disc

harg

ing

wat

er in

to la

rger

rec

eivi

ng w

ater

bod

y.

• C

ool w

ater

on-

site

in h

oldi

ng p

ond

prio

r to

dis

char

ge.

• In

stal

l mec

hani

cal d

iffus

ers.

•

Exp

lore

opp

ortu

nitie

s to

use

was

te h

eat.

•

Dew

ater

ing

of s

ludg

e an

d ap

prop

riate

dis

posa

l of s

olid

s.

• U

se d

eep

wel

l inj

ectio

n be

low

pot

able

leve

ls.

• C

onst

ruct

line

rs fo

r po

nds

and

solid

was

te d

ispo

sal.

So

ils

• S

oils

con

tam

inat

ion

due

to d

epos

ition

of w

indb

low

n fu

gitiv

e du

st a

nd c

oal.

• S

oils

con

tam

inat

ion

due

to d

epos

ition

of s

ulph

ates

, nitr

ates

an

d m

etal

s fr

om th

e st

ack

plum

e.

• S

oils

con

tam

inat

ion

due

to c

hem

ical

dis

char

ges

and

spill

s.

• Im

plem

ent a

bove

miti

gatio

n m

easu

res

unde

r th

e “a

mbi

ent a

ir” c

ompo

nent

. •

Dev

elop

spi

ll pr

even

tion

plan

s.

• D

evel

op tr

aps

and

cont

ainm

ent s

yste

ms

and

chem

ical

ly tr

eat d

isch

arge

s on

site

.

E

cosy

stem

s an

d v

eget

atio

n

• V

eget

atio

n re

mov

al a

nd lo

ss o

f hab

itat.

•

Sel

ect a

ltern

ativ

e si

te to

avo

id lo

ss o

f eco

logi

cal r

esou

rces

. •

Com

pens

ate

the

loss

of v

eget

atio

n an

d/or

hab

itat.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

T

ecsu

lt In

tern

atio

nal

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

8-22

Po

ten

tial

ad

vers

e an

d b

enef

icia

l im

pac

ts

Mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

A

qu

atic

wild

life

• T

herm

al s

hock

to a

quat

ic w

ildlif

e.

• E

ntra

inm

ent a

nd im

ping

emen

t of a

quat

ic w

ildlif

e.

• Im

plem

ent a

bove

miti

gatio

n m

easu

res

unde

r th

e “w

ater

” co

mpo

nent

. •

Loca

te th

e w

ater

inta

ke in

are

a th

at a

void

s si

gnifi

cant

impa

ct o

n aq

uatic

wild

life.

•

Inst

all s

cree

ns o

n th

e w

ater

inta

ke to

avo

id e

ntra

inm

ent a

nd im

ping

emen

t.

Q

ual

ity

of

life

• In

crea

se o

f am

bien

t noi

se d

ue to

the

oper

atio

n of

hea

vy

equi

pmen

t, tr

ansf

er a

nd h

andl

ing

of fu

el, t

urbi

nes,

ste

am

relie

f, w

hist

les

and

alar

ms,

traf

fic (

truc

ks a

nd m

achi

nery

).

• C

ontr

ol th

e tim

ing

of n

oise

and

vib

ratio

n to

leas

t dis

rupt

ive

perio

ds.

• In

stal

l noi

se b

arrie

rs.

• D

evel

op p

lan

to e

duca

te w

orke

rs o

n se

nsiti

ve v

alue

s an

d pa

ttern

s.

H

ealt

h o

utc

om

es

• W

orke

r ex

posu

re to

dus

t fro

m a

sh a

nd c

oal.

• W

orke

r ex

posu

re to

toxi

c ga

ses

leak

ing

from

the

broi

lers

. •

Wor

ker

expo

sure

to e

xces

sive

noi

se.

• P

oten

tial f

or fi

re r

isk.

• P

rovi

de d

ust c

olle

ctor

equ

ipm

ent.

• M

aint

ain

dust

leve

ls le

ss th

an 1

0mg/

m³.

•

Mon

itor

for

free

sili

ca c

onte

nt.

• P

rovi

de d

ust m

asks

whe

n le

vels

are

exc

eede

d.

• M

aint

ain

boile

rs p

rope

rly.

•

Mon

itor

conc

entr

atio

ns w

ith le

vels

not

to e

xcee

d: S

O2

- 5p

pm; C

O -

50p

pm; N

O2

- 5p

pm.

• M

aint

ain

nois

e le

vels

from

bel

ow 9

0dB

A.

• P

rovi

de e

ar p

rote

ctio

n if

in e

xces

s.

• E

nsur

e th

at fi

re p

reve

ntio

n an

d fig

htin

g eq

uipm

ent i

s su

pplie

d to

the

proj

ect s

ite.

In

fras

tru

ctu

res

and

ser

vice

s

• In

crea

sed

dem

and

on in

fras

truc

ture

due

to in

duce

d se

cond

ary

deve

lopm

ent.

• P

rovi

de in

fras

truc

ture

pla

n an

d fin

anci

al s

uppo

rt fo

r in

crea

sed

dem

ands

. •

Con

stru

ct fa

cilit

ies

to r

educ

e de

man

ds.



8-23

8.4 Geothermal power projects

8.4.1 General characteristics of geothermal power projects

Depending on temperature, depth and quality of the water and steam in the project area,

three different types of power plants are used to produce electricity from geothermal energy,

i.e. dry steam, flash, and binary.

Dry steam is extremely hot steam, typically above 235 °C. This steam is used for direct

running of generators. This is the most simple and oldest principle and still in use because it

is the far cheapest principle of generating electrical energy from geothermal resources.

Flash steam plants are the most common type of geothermal power generation plants in

operation. Flash steam power plants use hot water above 182°C from geothermal reservoirs.

As the water is pumped from the reservoir to the power plant, the drop in pressure causes

the water to convert (flash) into steam to power the turbine. Any water not flashed into steam

is injected back into the reservoir for reuse. Flash steam plants, like dry steam plants, emit

small amounts of gases and steam.

Binary cycle power plants use water cooler than flash steam plants (i.e. from 107 to 182°C).

The hot fluid from geothermal reservoirs is passed through a heat exchanger which transfers

heat to a separate pipe containing Iso-butane or Iso-pentane, which are vaporized to power

the turbine. The advantage of binary-cycle power plants is their lower cost and increased

efficiency. These plants also do not emit any excess gas and, because they use fluids with a

Geothermal power station




8-24

lower boiling point than water, are able to utilize lower temperature reservoirs, which are

much more common.

In all cases the condensed steam and remaining geothermal fluid is injected back into the

ground to pick up more heat.

8.4.2 Environmental issues related to geothermal power projects

On the environmental point-of-view, geothermal energy offers a number of advantages over

fossil fuel used by thermal power plants. Indeed, geothermal energy is clean and safe for the

surrounding environment. It is also sustainable because the hot water used in the

geothermal process can be re-injected into the ground to produce more steam. Moreover,

geothermal energy is competitive on the economic standpoint and reduces reliance on costly

fossil fuels.

Geothermal power plants do not involve important environmental concerns, except for low

levels of carbon dioxide, nitric oxide, and sulfur emissions. However, geothermal plants can

be built with emissions-controlling systems that can inject these gases back into the earth,

thereby reducing carbon emissions to non-significant levels.

8.4.3 Social issues related to geothermal power projects

Land use

The space requirements of geothermal installations (wells, pipelines and plant) are quite

modest, so these facilities hardly interfere with agricultural utilization of the surrounding land

and rarely require involuntary resettlement.

However, the selection of a construction site for a geothermal power plant must take into

account soil potential (quality) of the land that will be lost for agriculture or pasture. For

example, between two sites having good technical characteristics, the one with the lowest

soil potential shall be selected. Thereby, it will be easier to compensate the losses with land

having similar or higher potential. Whenever possible, plant designers should pay attention

in minimizing the surface area of the facility in order to limit land lost.



8-25

8.4.4 Potential impacts of geothermal power projects and mitigation measures

General impacts and mitigation measures related to the construction of a geothermoelectric

facility have been listed in Section 8.1. Specific environmental and social impacts are

presented in Table 8.4.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

T

ecsu

lt In

tern

atio

nal

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

8-26

Tab

le 8

.4

Po

ten

tial

imp

acts

, mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

spec

ific

to

geo

ther

mal

pow

er p

roje

cts

Po

ten

tial

ad

vers

e an

d b

enef

icia

l im

pac

ts

Mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

A

mb

ien

t ai

r

• Lo

w le

vel g

reen

hous

e ga

s em

issi

ons.

•

Odo

urs

due

to o

nsite

sew

age

or w

aste

wat

er tr

eatm

ent.

• In

stal

l and

mai

ntai

n pr

oper

air

pollu

tion

cont

rol e

quip

men

t. •

Use

equ

ipm

ent c

ompl

ying

with

res

tric

tive

stan

dard

s.

Wat

er

• D

egra

datio

n of

sur

face

wat

er q

ualit

y du

e to

incr

ease

d ru

n-of

f fol

low

ing

the

rem

oval

of v

eget

atio

n.

• D

egra

datio

n of

gro

undw

ater

qua

lity

due

to p

erco

latio

n fr

om

settl

ing

and

slud

ge p

onds

, lea

kage

of f

uels

, pro

cess

ch

emic

als,

or

othe

r co

mpo

unds

use

d on

site

. •

Pot

entia

l for

gro

undw

ater

con

tam

inat

ion

from

pip

elin

e br

eaka

ge.

• U

nder

take

the

colle

ctio

n an

d tr

eatm

ent o

f sew

age

and

orga

nic

was

te.

• D

ilute

was

tew

ater

at p

oint

of d

isch

arge

•

Dew

ater

ing

of s

ludg

e an

d ap

prop

riate

dis

posa

l of s

olid

s.

• C

onst

ruct

line

rs fo

r po

nds

and

solid

was

te d

ispo

sal.

• In

spec

t reg

ular

ly (

mon

thly

) th

e pi

pelin

e ro

ute

for

poss

ible

pip

elin

e da

mag

e.

S

oils

• S

oils

con

tam

inat

ion

due

to c

hem

ical

dis

char

ges

and

spill

s.

• D

esig

n th

e pi

pelin

e ac

cord

ing

to s

tand

ard

engi

neer

ing

prac

tices

and

cod

es.

• D

evel

op s

pill

prev

entio

n pl

ans.

•

Dev

elop

trap

s an

d co

ntai

nmen

t sys

tem

s an

d ch

emic

ally

trea

t dis

char

ges

on s

ite.

E

cosy

stem

s an

d v

eget

atio

n

• V

eget

atio

n re

mov

al a

nd lo

ss o

f hab

itat.

•

Sel

ect a

ltern

ativ

e si

te to

avo

id lo

ss o

f eco

logi

cal r

esou

rces

. •

Com

pens

ate

the

loss

of v

eget

atio

n an

d/or

hab

itat.

Qu

alit

y o

f lif

e

• In

crea

se o

f am

bien

t noi

se d

ue to

the

oper

atio

n of

hea

vy

equi

pmen

t, tu

rbin

es, w

hist

les

and

alar

ms,

traf

fic

• D

isru

ptio

n of

soc

ial a

nd c

ultu

ral v

alue

s an

d pa

ttern

s.

• C

ontr

ol th

e tim

ing

of n

oise

and

vib

ratio

n to

leas

t dis

rupt

ive

perio

ds.

• In

stal

l noi

se b

arrie

rs.

• D

evel

op p

lan

to e

duca

te w

orke

rs o

n se

nsiti

ve v

alue

s an

d pa

ttern

s.

• P

rovi

de b

ehav

iour

al a

nd p

sych

olog

ical

rea

djus

tmen

t pro

gram

s an

d se

rvic

es.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

Tec

sult

Inte

rnat

iona

l

8-27

Po

ten

tial

ad

vers

e an

d b

enef

icia

l im

pac

ts

Mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

H

ealt

h o

utc

om

es

• W

orke

r ex

posu

re to

toxi

c ga

ses.

•

Wor

ker

expo

sure

to e

xces

sive

noi

se.

• P

oten

tial f

or fi

re r

isk.

• A

void

exp

osur

e to

hyd

roge

n su

lphi

de g

as (

H2S

) us

ing

mon

itorin

g an

d w

arni

ng s

yste

ms,

an

d co

ntin

genc

y pl

an fo

r H

2S r

elea

se e

vent

s.

• M

aint

ain

nois

e le

vels

from

bel

ow 9

0dB

A.

• P

rovi

de e

ar p

rote

ctio

n if

in e

xces

s.

• E

nsur

e th

at fi

re p

reve

ntio

n an

d fig

htin

g eq

uipm

ent i

s su

pplie

d to

the

proj

ect s

ite.

In

fras

tru

ctu

res

and

ser

vice

s

• In

crea

sed

dem

and

on in

fras

truc

ture

due

to in

duce

d se

cond

ary

deve

lopm

ent.

• P

rovi

de in

fras

truc

ture

pla

n an

d fin

anci

al s

uppo

rt fo

r in

crea

sed

dem

ands

. •

Con

stru

ct fa

cilit

ies

to r

educ

e de

man

ds.




8-28

8.5 Power transmission lines

8.5.1 General characteristics of power transmission lines

Power transmission and distribution lines aim to transport and distribute the power

generated by a power station. The main structures of power lines include electric wires,

conductors, towers, supports, transformers and substations. Access roads are also required

for constructing and maintaining the line.

The size of the electrical structures depends on the voltage and the capacity of the power

line. Wood poles are often used for low-voltage distribution lines in urban and rural areas. H-

frame wood pole structures are used for intermediate voltage lines. High-voltage

transmission lines of 161 kV and more are usually built on self-supporting and guyed-wired

pylons.

The length of power lines, which can vary from a few to hundreds of kilometres, depends on

the purpose of the line. Low-voltage lines, used for power distribution, are usually much

shorter than high-voltage lines, which are used to carry the energy from power plants located

in remote areas.

The width of the power line right-of-way also ranges according to the voltage. The

distribution line right-of-way in urban or rural areas is usually narrow (5 to 20 m), whereas

the right-of-way of high-voltage power transmission lines can be hundreds of meters wide,

particularly when there is more than one line in the right-of-way.

Power distribution line



8-29

8.5.2 Environmental issues related to power transmission lines

Biological aspects

Transmission lines can open up more remote lands to human activities such as settlement,

agriculture, hunting, recreation, etc. Construction of the power line right-of-way can result in

the loss and fragmentation of habitat and vegetation along the line. These effects can be

significant if natural areas, such as wetlands or natural forests are affected, or if the newly-

accessible lands are the home of indigenous peoples.

The control of vegetation in the right-of-way is often necessary to protect the power line.

Various techniques exist for controlling the growth of vegetation. From an environmental and

social point of view, selective clearing using mechanical means by local workers is most

preferable in NBI countries and should be evaluated in the framework of the project

environmental assessment. Aerial spraying of herbicides should be absolutely avoided

because it may result in contamination of surface waters and terrestrial food chains, as well

as elimination of desirable species and direct poisoning of wildlife.

8.5.3 Social issues related to power transmission lines

Agriculture

The route of the power transmission lines must take into account soil potential of the land

(agriculture, pasture) that will be lost under these infrastructures. For example, among routes

sharing the same technical characteristics, the one covering the area with the lowest soil

potential shall be selected. Whenever possible, designers should pay attention in minimizing

the size of the line towers at the ground level in order to limit surface lost for pasture et

agriculture.

In order to minimize fragmentation of agricultural plots (increasing the workload for farmers),

it is recommended to layout the line towers parallel to other existing linear infrastructures

such as highways, railways or roads.

Resettlement

Electric power transmission lines are typical linear projects. They have a long but narrow

corridor of impacts. Therefore, land acquisition or restriction consists of a strip along property




8-30

borders. Acquisition or restrictions imposed on this strip only affect a small part of one’s

property. Seldom, relocation of occupants will be required. In this case, the inhabitants can

usually be resettled in the same area and often, on their own plot of land.

A transmission line is usually only 12 to 25 meters wide but it extends for hundreds of

kilometres in rural areas. For instance, Ethiopia-Sudan transmission project, being

implemented under the NBI, involves a corridor of approximately 450 km long.

Except if they cannot avoid densely populated areas, transmission lines do not require

permanent land acquisition apart from the towers which impact will be very slight. However,

construction of associated infrastructures such as power substations may entail land

acquisition.

Construction of a transmission line will involve compensation for temporary losses such as

crop damage. The resettlement plan will also provide compensations for restrictions imposed

on land use under the transmission lines if such restrictions are applied. The land acquisition

for the towers being of only a few square meters per tower, the residual of the asset being

taken will remain economically viable. An easement fee will generally suffice to compensate

this permanent loss.

While transmission lines have less severe impacts than those of large-area such as

hydroelectric projects, they pose challenges in resettlement planning. By their linear nature,

transmission lines involve many stakeholders spread out in numerous localities. Public

information and consultation of the stakeholders including local authorities will be held over

hundreds of kilometres. Because the geographically dispersed populations are likely to be

culturally and linguistically heterogeneous, the information and consultation will entail case-

by-case adjustments. The census of the population and valuation of the lost assets and, the

organizational coordination and monitoring during implementation will face the same

problems. In addition, the resettlement plan for a transmission line will pose an important

institutional challenge since the line cuts through many administrative jurisdictions.

Health and safety

Even if it is not clearly demonstrated, several studies concluded that electromagnetism

emanating from power transmission lines could affect the health of people living and/or

working nearby. In order to avoid any problems, it is recommended that electric power lines



8-31

should not be layout in irrigated perimeters as farmers spend numerous hours in their plots

for soil preparation, seeding, weeding or harvesting.

Placement of low-slung lines or lines near human activity (e.g., highways, buildings)

increases the risk for electrocutions. Technical guidelines for design ordinarily minimize this

hazard. Towers and transmission lines can disrupt airplane flight paths in and near airports

and endanger low-flying airplanes, especially those used in agricultural management

activities.

8.5.4 Impacts of power transmission lines and mitigation measures

Table 8.5 below summarises the typical environmental and social impacts specific to power

transmission, and presents the common measures to offset, minimise, mitigate or

compensate these impacts. General impacts and mitigation measures of a power

transmission line have been listed in Section 8.1.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

T

ecsu

lt In

tern

atio

nal

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

8-32

Tab

le 8

.5

Po

ten

tial

imp

acts

, mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

spec

ific

to

po

wer

tra

nsm

issi

on

lin

es

Po

ten

tial

ad

vers

e an

d b

enef

icia

l im

pac

ts

Mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

A

mb

ien

t n

ois

e

• In

crea

se in

am

bien

t noi

se n

ear

the

subs

tatio

ns.

• Lo

cate

sub

stat

ions

in r

emot

e ar

eas.

•

Est

ablis

h ve

geta

tion

edge

s ar

ound

sub

stat

ions

, in

orde

r to

min

imis

e no

ise.

Wat

er

• C

onta

min

atio

n of

sur

face

and

gro

undw

ater

by

pest

icid

es u

sed

for

the

mai

nten

ance

of t

he

tran

smis

sion

line

rig

ht-o

f-w

ay.

• F

avou

r th

e us

e of

veg

etat

ion

mec

hani

cal m

aint

enan

ce b

y lo

cal w

orke

rs r

athe

r th

an p

estic

ides

. •

If m

echa

nica

l mai

nten

ance

is n

ot fe

asib

le (

in a

reas

diff

icul

t of a

cces

s fo

r ex

ampl

e, s

elec

t her

bici

des

with

min

imal

und

esire

d ef

fect

s.

• D

o no

t app

ly h

erbi

cide

s b

y ae

rial s

pra

ying

.

So

ils

• S

oil e

rosi

on a

long

the

right

-of-

way

. •

Ris

k of

soi

l con

tam

inat

ion

from

sub

stat

ions

. •

If po

ssib

le, l

ocat

e th

e tr

ansm

issi

on li

ne r

oute

in fl

at a

reas

. •

Dev

elop

spi

ll pr

even

tion

plan

s.

• D

evel

op tr

aps

and

cont

ainm

ent s

yste

ms

and

chem

ical

ly tr

eat d

isch

arge

s on

site

.

Bio

div

ersi

ty

• E

ncro

achm

ent i

nto

ecol

ogic

ally

sen

sitiv

e an

d pr

otec

ted

area

s.

• In

crea

sed

acce

ss to

eco

syst

ems

of p

artic

ular

in

tere

st.

• D

esig

n th

e rig

ht-o

f-w

ay

layo

ut a

void

ing

ecol

ogic

ally

sen

sitiv

e an

d pr

otec

ted

area

s.

• E

stab

lish

a pe

rimet

er o

f pro

tect

ion

arou

nd s

ensi

tive

ecos

yste

ms

such

as

wet

land

s an

d un

ique

ha

bita

ts s

helte

ring

enda

nger

ed s

peci

es.

• M

inim

ise

the

leng

th o

f w

ork

in e

colo

gica

lly s

ensi

tive

area

s.

• M

inim

ise

the

right

-of-

way

layo

ut in

wet

land

and

nat

ural

for

est.

W

ildlif

e

• F

ragm

enta

tion

of w

ildlif

e ha

bita

ts.

• B

irds

haza

rds

from

tran

smis

sion

line

s an

d py

lons

. •

Incr

ease

in p

oach

ing.

• M

aint

ain

wild

life

habi

tat b

enea

th tr

ansm

issi

on li

ne.

• A

void

impo

rtan

t bird

hab

itat.

• In

stal

l def

lect

ors

on li

nes

in a

reas

with

pot

entia

l for

bird

col

lisio

ns.

• D

esig

n th

e rig

ht-o

f-w

ay

layo

ut b

y ta

king

into

acc

ount

wild

life

repr

oduc

tion

area

s.

• C

ontr

ol il

lega

l hun

ting.

Qu

alit

y o

f lif

e

• V

isua

l deg

rada

tion

of th

e la

ndsc

ape

due

to n

ew

infr

astr

uctu

res.

•

Fav

our

an a

rchi

tect

ural

des

ign

inte

grat

ing

proj

ect i

nfra

stru

ctur

es in

to th

e la

ndsc

ape.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

roje

ct

Env

ironm

enta

l Ass

essm

ent F

ram

ewor

k fo

r R

egio

nal P

ower

Pro

ject

s in

Nile

Bas

in C

ount

ries

05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

Tec

sult

Inte

rnat

iona

l

8-33

Po

ten

tial

ad

vers

e an

d b

enef

icia

l im

pac

ts

Mit

igat

ion

an

d e

nh

ance

men

t m

easu

res

H

ealt

h o

utc

om

es

• E

ffect

of e

lect

rom

agne

tic fi

elds

. •

Incr

ease

d ris

k of

acc

iden

ts d

ue to

airc

raft

colli

ding

w

ith tr

ansm

issi

on li

nes

and

pylo

ns.

• In

crea

sed

risk

of e

lect

rocu

tion

asso

ciat

ed w

ith

illeg

al a

bstr

actio

n.

• A

void

irrig

ated

per

imet

ers.

•

Loca

te th

e rig

ht-o

f-w

ay

to a

void

airp

ort f

light

pat

hs.

• In

stal

l mar

kers

to m

inim

ise

risks

of l

ow-f

lyin

g ai

rcra

ft.

• C

ontr

ol il

lega

l abs

trac

tion.

S

oci

o-e

con

om

ic d

evel

op

men

t

• D

iver

sific

atio

n of

inco

me

gene

ratin

g ac

tiviti

es d

ue

to a

bet

ter

acce

ss to

ene

rgy.

•

Dis

rupt

ion

of s

ome

econ

omic

act

iviti

es s

uch

as

tour

ism

.

• E

ncou

rage

the

purs

uing

of

agric

ultu

ral a

ctiv

ities

in r

ight

s-of

-way

afte

r co

nstr

uctio

n.

• A

void

tour

ist s

ites.

In

fras

tru

ctu

res

and

ser

vice

s

• B

ette

r ac

cess

to e

nerg

y.

• In

clud

e an

acc

ess

com

pone

nt in

pro

ject

s to

favo

ur a

bro

ader

dis

trib

utio

n of

ele

ctric

ity to

hou

seho

lds.



9-1

9 LIFE CYCLE AND SYSTEMS APPROACH IN THE EIA FRAMEWORK

9.1 Life cycle assessment in EA

The integration of Life Cycle Assessment (LCA) in the environmental assessment (EA) of a

power project is very innovative. Indeed, the LCA studies conducted so far were for general

construction projects, especially after project implementation.

This EA framework considers three types of projects: hydropower, thermal and geothermal

power plants. In addition, these projects require the construction of a power line to transport

electricity to users.

The comparison of LCA and Environmental Impact Assessment (EIA) according to spatial

(global versus local) and time (cradle versus local) scales is presented in Figure 9.1.

Figure 9.1 Comparison of LCA and EIA

Contrary to EIA which is a specific site study, LCA is a method of evaluating the

environmental impact systematically and quantitatively in the entire life cycle of a certain

action by analysing all stages of the entire process “from craddle to grave”. LCA consists of

three parts: identification and quantification of the flows of energy and materials; estimation

of the consumption of energy and materials as well as emissions generation in every




9-2

process; assessment of the total environmental impact of the entire life cycle and a proposal

of solution to protect environment. However, LCA only assess the effects on ecology, health

and the consumption of resources, and doesn’t take into account economic or social effects..

That is the reason why, both LCA and EIA are complementary studies, especially for

regional power projects in the NBI countries.

9.2 Definition of life cycle assessment

Life cycle assessment evaluates the global environmental impacts of a product (or a

process) in relation of a functional unit, and this, for each step on its life cycle. According to

ISO 14040, life cycle assessment shall include four different phases: definition of goal and

scope, inventory analysis, impact assessment, and finally, interpretation of results. In other

terms, LCA carries out an assessment quantified on all the project life cycle, thus covering a

large number of different impacts. Moreover, it is the only assessment binding the

environmental impacts and the principal function of the product or the project. For that

reason, Life Cycle Assessment is a relevant holistic study, in complement to the

Environmental Impact Assessment.

Applied to power projects, LCA must include the incidences of the raw material extraction,

the treatment and the transport of fuels as well as the construction of the project, the

activities of electricity production on the site and the decommissioning waste. Figure 9.2

shows the typical life cycle for an electrical power project.



9-3

Figure 9.2 Typical Life Cycle (simplified model) for electrical power projects




9-4

9.3 Life cycle assessment international standards

To make sure the LCA is recognized, it has to be conducted and based on international

standards. The applicable international standard for LCA is the ISO 14040 series. The two

most important standards of the ISO 14040 series are:

• ISO 14040 (2006): Environmental management – Life Cycle assessment – Principles and framework; and

• ISO 14044 (2006): Environmental management – Life Cycle assessment – Requirements and Guidelines.

They will be completed with:

• ISO 14047 (2003): Environmental management – Life Cycle assessment – Examples of application of ISO 14042;

• ISO 14048 (2002): Environmental management – Life Cycle assessment – Data documentation;

• ISO 14049 (2000): Environmental management – Life Cycle assessment – Examples of application of ISO 14041 to goal and scope definition and inventory analysis.

ISO 14040 defines the principles and the framework and ISO 14044 defines the

requirements and the guidelines, all applicable to carry out a life cycle analysis. These two

standards include: definition of the objectives and the scope of the life cycle analysis, the

phase of life-cycle inventory and the evaluation of the impact of the life cycle. They also

include the interpretation phase, the communication and critical review and the limitations of

the life cycle assessment as well as the relationship between phases of the life-cycle

assessment and the conditions for using choice of values and optional elements.

ISO 14047 is a technical report illustrating practices to conduct a life cycle impact

assessment. They reflect the key elements of the life cycle impact assessment (LCIA)

phases.

ISO 14048 provides the requirements and the structures for transparent and clear data

documentation, so the exchange of Life cycle analysis and inventory cycle life data analysis

will be facilitated.

The purpose of the Technical Report ISO 14049 is to provide examples of the method of

realization of a life-cycle inventory. Those examples represent only a sample that would



9-5

meet the provisions of the standard. They should not be regarded as the only way to put this

standard into practice, but as a medium or resources.

9.4 Life cycle assessment in the EA process for regional power projects in the NBI countries

The following points will help the proponent to understand what step of the Environmental

Assessment Process it must undertake in the LCA study of the regional power project.

• Only Category A projects requires life cycle assessment.

• LCA is divided into 4 steps: 1) identification of the goal and scope, 2) inventory analysis, 3) impact assessment requirements, and 4) impact assessment interpretation. The first step is necessary in the scoping step of the EA Process. As for steps 2 to 4, they are carried out during the preparation of the studies during step 4 of the EA process (Impact assessment). In other terms, the LCA will be integrated in the EA process from the scoping stage up to the final decision.

Figure 9.3 shows the relation between LCA and the EA process for regional power projects.




9-6

Figure 9.3 LCA in the EA process for regional power projects

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9-7

9.5 Guidelines for conducting a life cycle assessment

9.5.1 Goal and scope of the project

According to ISO 14040, the goal of a LCA study shall unambiguously state the intended

application, the reasons for carrying out the study and the intended audience, i.e. to whom

the results of the study are intended to be communicated.

Moreover, the LCA study shall clearly describe the scope of the project. According to ISO

14040, the following items shall be considered:

• Goal and scope of the project;

• Function (ex: electricity production);

• Functional unit (ex: number of MWh generated);

• System boundary or main system components to be included in Electrical Power and transmission line project during construction, production, transportation, use and decommissioning phases;

• Sub-systems functions, functional units and boundaries among others related to the raw material production (ex: cement plant, steel plant, metal production plants, etc.), energy supply and land use;

• Data quality requirements;

• Critical review considerations based on international standard requirements.

Each of these items is developed in the following section.

System function and functional unit

The LCA study shall clearly specify the functions of the power investment project being

studied. For example, the principal function should be “electricity generation”.

When the function of the system is clearly defined, the LCA study shall identify the functional

unit of the project. This functional unit indicates the unit being used to quantify the system

function. Usually, the functional unit must be the same suggested in the others scenarios

(generic scenarios). As an indication, the functional unit generally used in power projects is

the MegaWatt hour (MWh).




9-8

System Boundary

The study shall determine which unit processes shall be included within his LCA. In order to

establish the system boundary, the study needs to cover the various stages of the project life

cycle:

• Extraction and preparation of the raw materials and energy;

• Construction of infrastructures, machines and inputs, as well as transportation;

• Main production phase (in this case: electricity production) and transportation;

• Waste processing (taking into consideration the possibilities of re-use, recycling and utilisation for energy purposes);

• Decommissioning of the plant.

Data quality requirements

The proponent shall define the data quality requirements to enable the goal and scope to be

met by the LCA study. These data quality requirements specify the characteristics of data

needed for the study. Data quality should be characterized by both quantitative and

qualitative aspects and by the methods used to collect and integrate this data.

The data quality requirements include:

• Time-related coverage: the desired age of the data and the minimum length of time over which data should be collected;

• Geographical coverage: geographical area from which data for unit processes should be collected to satisfy the goal of the study (local, regional, national…);

• Technology coverage: technology mix (weighted average of the actual process mix, best available technology or worst operating unit).

The study shall also consider descriptors defining the nature of the data, such as the fact

that they were collected from specific sites versus data from published sources, and whether

the data should be measured, calculated or estimated.

The LCA study should use data from specific sites or representative averages for the unit

processes contributing to the majority of the mass and energy flows in the systems being

studied, as determined in the sensitivity analysis. The LCA should also use data from



9-9

specific sites for unit processes that are considered to have environmentally relevant

emissions.

The study must also consider the following additional data quality requirements in all studies,

in a level of detail depending on the goal and the scope definition:

• Precision: measure of the variability of the data values for each data category used;

• Completeness: percentage of locations reporting primary data from the potential number existing for each data category in a unit process;

• Data representativeness: qualitative assessment of the degree to which the data set reflects the true population of interest (geographical coverage, time period and technological coverage);

• Consistency: qualitative assessment of how uniformly the study methodology is applied to the various components of the analysis;

• Reproducibility of the methods used throughout the LCA: qualitative assessment of the extend to which the methodology and data values allows an independent practitioner to reproduce the results reported in the study;

• Sources of the data and their representativeness;

• Uncertainty of the information.

Critical review considerations

The study shall consider conducting a critical review to verify if the LCA study has met the

requirements of international standards related to methodology, data and reporting. This

process gives more credibility to the study. The study shall define, in the scope of the study,

whether and how to conduct the critical review and who is going to conduct the review. The

scope and type of critical review desired shall be defined in this phase of the LCA (goal and

scope definition).

The critical review will facilitate understanding of the LCA studies and enhance their

credibility, by involving a third part (i. e. the interested parties). It should be mentioned in the

scope of the study why the critical review is undertaken, what will be covered and what is the

level of details desired. It is also important to specify who will be involved in the critical

review process.

In the phase of LCA’s scope definition, the study should consider the following information

while defining the scope of the process of its critical review:




9-10

• The methods used to carry out the LCA are consistent with the International Standards ISO 14040 (2006);

• The method used to carry out the LCA are scientifically and technically valid;

• The data used is appropriate and reasonable in relation to the goal of the study;

• The interpretations reflect the limitations identified and the goal of the study;

• The study report is transparent and consistent.

It is important to know that ISO 14040 (2006) does not specify requirements on the goal or

use of LCA, so the critical review can’t neither verify nor validate the goals that are chosen

for the LCA or the use of the LCA’s results.

The critical review may be undertaken by three types of parties:

• An internal expert could be chosen in the case that an internal review is carried out. This expert needs to be familiar with ISO 14040 process and is scientifically and technically qualified. A review statement is prepared by the person conducting the LCA study and then reviewed by the internal, independent expert. This review statement may also be prepared by the internal, independent expert. It should be included in the study report;

• External expert could be chosen in the case that an external review is carried out. This expert needs to be familiar with ISO 14040 process and is qualified (scientifically and technically). A review statement is prepared by the person conducting the LCA study and then reviewed by the external, independent expert. This review statement may also be prepared by the external, independent expert. It should be included in the study report;

• An external independent expert is selected to act as the chairperson and, considering the goal, scope and budget available for the review, he will select another independent qualified reviewer.

9.5.2 Inventory analysis (extraction and emission)

The LCA study shall conduct an inventory analysis, which includes a data collection and

calculation procedures to quantify relevant inputs and outputs of the system. These inputs

and outputs may include the use of resources (energy, raw material, transport

consumptions…) and releases to air, water and land associated with the system. The study

must draw interpretations from these data, depending on the goals and scope of the LCA.

The data also constitute the input to the life cycle impact assessment.

The study shall collect, for each unit process that is included within the system boundaries,

the qualitative and quantitative data for inclusion in the inventory. The procedure used for



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data collection may vary depending on the scope, unit process or intended application of the

study. Data collection can be a resource-intensive process. The study should consider in the

scope the practical constraints on data collection and document it in the study report.

The LCA should pay attention to the significant calculation considerations outlined in the

following.

• Allocation procedures are needed when dealing with systems involving multiple products (e.g. multiple products from petroleum refining). The material and energy flows as well as associated environmental releases shall be allocated to the different products according to clearly stated procedures, which shall be documented and justified.

• The calculation of energy flow should take in consideration the different fuels and electricity sources used, the efficiency of conversion and distribution of energy flows as well as the inputs and outputs associated with the generation and use of that energy flow.

As shown on Figure 9.4, the approach to conduct a life cycle inventory analysis is the

following:

• From reference flow defined in relation to the functional unit, the tree of the process for all basic unit modules of the system is established;

• For each unit basic process, its inputs and direct emissions are determined in a production inventory;

• The data regarding emissions and extractions of these inputs are sought in a database or throughout direct contact with the manufacturer of the product. These data could also be obtained in situ. Regarding indirect emissions and extractions, they are calculated by multiplying the quantity of input used by functional unit with factors of emissions per unit of inputs;

• Total emissions and extractions are calculated by summing direct elementary flows and emissions and extractions indirectly linked to inputs.

As data are collected and more is learned about the system, the study could identify new

data requirements or limitations. These may require a change in the data collection

procedures so that the goals of the study will still be met. In another hand, the study may

identify issues that require revisions of the goal and scope of the study.




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Figure 9.4 Simplified procedures for inventory analysis



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As shown on Figure 9.2 above, the LCA of the three types of power plant project have to

take in consideration the following aspects during life cycle inventory:

1. Raw material

2. Construction phase

3. Electricity production

4. Electricity transportation

5. Decommissioning

9.5.2.1 Guidelines specific to hydropower projects

For hydro-power projects the LCA inventory shall quantify material and energy flows

considering the following inputs and outputs:

Inputs, including:

o material extracted to produce concrete: fly ashes, sand, stone, water, limestone...

o material extracted to produce steel: ores, limestone, coal (used to produce coke, a sub-product of steel)…

o energy consumed at each phase of the LCA in MWh

Outputs, including:

o energy produced during the operational phase (Electricity Production) in MWh

o emissions to air: mainly nitrogen oxides (NOx), carbon dioxide (CO2),sulphur dioxide (SO2), methane (CH4), and dust




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o emissions to water: mercury pollution during commissioning phase

o waste for treatment: mainly waste water during the pre-construction phase, waste liquids during the construction, and waste material from decommissioning

o recyclable material from the decommissioning

9.5.2.2 Guidelines specific to geothermal power plants

For geothermal power projects the LCA inventory shall quantify material and energy flows


Inputs, including:

o material extracted to produce concrete: fly ashes, sand, stone,water, limestone...


o material extracted to produce plastic pipes: mainly crude oil


o hydrogen sulfide coming with the hot ground water which is re-injected in the pipes into the ground

Outputs, including:


o emissions to air: mainly nitrogen oxides (NOx), carbon dioxide (CO2),sulphur dioxide (SO2), methane (CH4), polycyclic aromatic hydrocarbons (PAH), VOCs and dust

o emissions to water: hydrogen sulfide if not totally re-injected into the ground



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9.5.2.3 Guidelines specific to thermal power plants

For thermal projects the LCA inventory shall quantify material and energy flows considering

the following inputs and outputs:

Inputs, including:

o material extracted to produce concrete: fly ashes, sand, stone, water, limestone...



o raw fuel extracted to feed the thermal power plant: lignite, oil or gas

Outputs, including:





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o emissions to air: mainly nitrogen oxides (NOx), carbon dioxide (CO2),sulphur dioxide (SO2), methane (CH4), PAH and VOCs

o emissions to water: acid rains



9.5.2.4 Guidelines specific to transmission lines

For transmission projects the LCA inventory shall quantify material and energy flows


Inputs, including:

o material extracted to produce posts (steel or wood)

o material extracted to produce copper wires: ores, crude oil…


Outputs, including:

o emissions to air: mainly nitrogen oxides (NOx), carbon dioxide (CO2),sulphur dioxide (SO2),methane (CH4), PAH, VOCs and dust

o emissions to water: mainly waste liquids used for equipment maintenance during the installation phase

o waste for treatment: mainly waste material from decommissioning




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9.5.3 Impact assessment requirements

This phase is the third step of the LCA. With the inventory analysis, the study has allowed to

determine the quantities of material and energy extracted, and the emissions in water, air

and ground. It is now time to link the information to their impact on the environment. This

process involves associating inventory data with specific environmental impacts and

attempting to understand those impacts. The level of detail, choice of impacts evaluated and

methodology used depends on the goal and scope of the study.

The assessment may include the iterative process of reviewing the goal and scope of the

LCA study to determine when the objectives of the study have been met, or to modify the

goal and scope if the assessment indicates that they cannot be achieved.

The impact assessment phase includes elements such as the following:

• Selection of the impact categories, environmental indicators and characterization models; Tables 9.1 and 9.2 present examples of environmental indicators;

• Assignment of the inventory results to the impact categories;

• Determination of the category indicator results;

• Comparison to the environmental indicators.




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Table 9.1 Atmospheric and liquid rejects indicators - World Bank maximum values

Atmospheric Emissions Liquid Effluents Industry

Particulate matter

(mg/Nm3)

Sulfur oxides (mg/Nm3)

Nitrogen oxides

(mg/Nm3)

pH COD (mg/l)

TSS (mg/l)

Oil and grease (mg/l)

Phenol (mg/l)

Temp. increase

Metals and other (mg/l)

Cement manufacturing

50 400 600 6-9 50

L 3�C

Coal mining and production 50 6-9 50 10 L 3�C Mercury: 3.5

Steel manufacturing

50 500 750 6-9 250 50 10 0.5 L 3�C

Cadnium: 0.1 Chronium: 0.5 Mercury: 0.01

Plomb: 0.2 Zinc: 2

CN- free: 0.1

total: 1

Thermal power, new plants 50

0.2 tpd/MWe (to 500 MWe) 0.1 tpd/MWe (incr. over 500 MWe) Not to exceed 2000 mg/Nm3 in flue gases Not to exceed 500 tpd

750 6-9 50 10 L 3�C

Chronium: 0.5 Copper: 0.5

Iron: 1 Zinc: 1

Chlorine shoking: max. value is 2 mg/l for up to 2 hrs, not to be repeated more frequently than once in 24 hrs, with a 24-hrs average of 0.2mg/l.

Source: World Bank, Pollution Prevention and Abatement Handbook, Summary of air emission and effluent discharge requirements presented in the industry Guidelines Section. Abbreviations: N in mg/Nm3 stands for “normal” that is to say a temperature of 0�C and an atmospheric pressure of 1 atmosphere. tpd/MWe: metric tons per day per megawatt of electricity COD: Chemical oxygen demand TSS: Total suspended solids CN: cyanide



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Table 9.2 Ambient air quality indicators of different world standing institutions

Criterion Institution Parameter

Type Value (μg/m3)

Daily 125

Sulfur dioxide

Yearly 50 Nitrogen dioxide Daily 150

Daily 70

World Bank (1)

Particulate matter

Yearly 50 Daily 125 Sulfur dioxide

Yearly 50 Nitrogen dioxide Yearly 40

Hourly 30 000 World Health Organization (2)

Carbon monoxide 8 hours 10 000

Daily 250 Sulfur dioxide (3)

Yearly 80 Nitrogen dioxide (4) Hourly 200

Daily 250

European Union

Particulate matter (3)

Yearly 80 Daily

365 Sulfur dioxide

Yearly 80 Nitrogen dioxide Yearly 100

Hourly 40 000 Carbon monoide 8 hours 10 000

Daily 150

USEPA – United-States (5)

Particulate matter

Yearly 50 (1) Source: World Bank, Pollution Prevention and Abatement Handbook, General Environmental Guidelines Section. (2) Source: Air Quality Guidelines, WHO, Genève, 2000. (3) Source: Council of European Communities, 1980, Council Directive of 15 July 1980 on air quality limit values and guide

values for sulphur dioxide and suspended particulates. (4) Source: Council of European Communities, 1985, Council Directive 85/203/EEC of 7 March 1985 on air quality

standards for nitrogen dioxide (98th percentile of the distribution of hourly values throughout the year). (5) Source: USEPA, National Ambient Air Quality Standards.




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The proponent needs to understand that because there is subjectivity in the life cycle impact

assessment phase such as the choice, modelling and evaluation of impact categories, and in

order to ensure that assumptions are clearly described and reported, transparency is critical

in impact assessment.

9.5.4 Impact assessment interpretation

The goal of this life cycle assessment stage is to identify the steps of the project on which

the proponent shall take actions to reduce the environmental impacts of the system.

The study must combine the findings from the inventory analysis and the impact assessment

in the interpretation phase of LCA, or, in a case of life cycle inventory studies, the findings of

the inventory analysis only. The interpretation has to be consistent with the defined goal and

scope, in order to reach conclusions and recommendations.

The interpretation findings may take the form of conclusions and recommendations to

decision-makers, consistent with the goal and scope of the study. The interpretation phase

may involve the iterative process of reviewing and revising the scope of the LCA, as well as

the nature and quality of the data collected consistently with the defined goal.

The findings of the interpretation phase should reflect the results of any sensitivity analysis

that is performed. Though subsequent decisions and actions may incorporate environmental

implications identified in the findings of the interpretation, they lie beyond the scope of the

LCA study, since other factors such as technical performance, economic and social aspects

are also considered.

To facilitate the interpretation, the study must interpret each phase of the LCA which are the

definition of goal and scope, the life cycle inventory analysis (emission and extraction) and

the impact assessment. The study could also compare each LCA step contribution (for

example, material preparation, transportation and energy), consider each component of the

system contribution and for each pollutant and substances extracted, consider their

contribution for each type of impact (what are the emissions and extractions which generate

the major part of the impact.



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10 ACCESS TO THE CLEAN DEVELOPMENT MECHANISM FUND

10.1 Overview of the Clean Development Mechanism

10.1.1 Origins of the Clean Development Mechanism

The global climate is changing and it is now demonstrated that it is due to human activities.

The complex climate models developed these last years enabled the population to

understand the potential irreversible and catastrophic consequences of this change.

Although the exact extent of the impacts and the speed at which this will occur remain

unknown, it is certain that industrialized countries, with their high levels of greenhouse gas

emissions, carry the major part of responsibility. It is equally obvious that developing

countries will assume the major burden of the negative impacts, due to their particular

vulnerability in geographic location, as well as economic, political, social and environmental

conditions.

10.1.1.1 Climate Change Convention

In this context, in 1992 after the Earth Summit of Rio de Janeiro, 154 countries signed the

United Nations Framework Convention on Climate Change (UNFCCC), an environmental

treaty that provides the outline of a global action plan to reduce emissions of greenhouse

gas and combat global warming.

The treaty as originally framed set no mandatory limits on greenhouse gas emissions for

individual nations and contained no enforcement provisions; it is therefore considered legally

non-binding.

Rather, the treaty included provisions for updates (called "protocols") that would set

mandatory emission limits. The principal update is the Kyoto Protocol, which has become

much better known than the UNFCCC itself.

Signatories to the UNFCCC are split into two groups:

• Annex I countries (industrialized countries).

• Developing countries.




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Annex I countries agree to reduce their emissions (particularly carbon dioxide) to target

levels below their 1990 emissions levels. If they cannot do so, they must buy emission

credits or invest in conservation. Developing countries have no immediate restrictions under

the UNFCCC.

10.1.1.2 Kyoto Protocol

The Kyoto Protocol was designed to further strengthen the provisions of the UNFCCC and

introduced flexible mechanisms that would allow a reduction of greenhouse gas emissions in

the most cost-effective, efficient and sustainable manner.

It was agreed on 11 December 1997 at the 3rd Conference of the Parties to the treaty when

they met in Kyoto, and entered into force on 16 February 2005.

As stated in the treaty itself, the objective of the Kyoto Protocol is to achieve "stabilization of

greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous

anthropogenic interference with the climate system"5.

As of June 2007, 172 parties have ratified the protocol. Of these, 36 countries (plus the EU

as a party in its own right) are required to reduce greenhouse gas emissions to the levels

specified for each of them in the treaty (representing over 61.6% of emissions from Annex I

countries)6, with three more countries intending to participate. Notable exceptions include

the United States and Australia. One hundred thirty seven (137) countries have ratified the

protocol, but have no obligation beyond monitoring and reporting emissions.

10.1.1.3 Convention of Parties 7 (COP-7) in Marrakech

Of these instruments, the Clean Development Mechanism (CDM) is of greatest interest to

the developing world. It allows channeling foreign investment to these countries to promote

sustainable development and abate greenhouse gas emissions while generating certified

emission reduction units (CERs) that industrialized nations can apply towards meeting their

own emission reduction targets.

5 The United Nations Framework Convention on Climate Change. Retrieved on November 15, 2005. http://unfccc.int/essential_background/convention/background/items/1353.php 6 Kyoto Protocol: Status of Ratification, 10 July 2006 (PDF). UNFCC. Retrieved on October 30, 2006. http://unfccc.int/files/essential_background/kyoto_protocol/application/pdf/kpstats.pdf



10-3

At the COP-7 meeting in Marrakech, Morocco October 29-November 10, 2001, negotiators

in effect completed the work of the Buenos Aires Plan of Action, finalizing most of the

operational details and setting the stage for nations to ratify the Protocol7. The completed

package of decisions is known as the Marrakech Accords. The United States delegation

continued to act as observers, declining to participate in active negotiations. The main

decisions at COP-7 included operational rules for international emissions trading among

parties to the Protocol and for the CDM and joint implementation.

In fact, the CDM was an important feature of the negotiations leading up to the Kyoto

Protocol. Some governments desired flexibility in the way that emission reductions could be

achieved and proposed international emissions trading as a way of achieving cost-effective

emission reductions. At the time it was considered a controversial element and was opposed

by environmental NGOs and, initially, by developing countries that feared the environmental

integrity of the mechanism would be too hard to guarantee. Eventually, and largely on US

insistence, the CDM and two other flexible mechanisms were written into the Kyoto Protocol.

The purpose of the CDM was defined under Article 12 of the Kyoto Protocol. Apart from

helping Annex I countries comply with their emission reduction commitments, it must assist

developing countries in achieving sustainable development, while also contributing to

stabilization of greenhouse gas concentrations in the atmosphere.

The CDM gained momentum in 2005 after the entry into force of the Kyoto Protocol.

10.1.2 International Standards on GHG

International standards were also developed to facilitate the implementation of CDM. In this

project, the applicable standards are:

• ISO 14064-1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals includes requirements for the design, development, management, reporting and verification of the GHG inventory of an organization.

• ISO 14064-2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements details requirements for planning a GHG project, the identification and selection of sources, sinks and reservoirs of greenhouse gases relevant to the project and the baseline for monitoring, measurement, documentation and report of the project GHG, and the management of data quality.

7 See http://www.climnet.org/COP7/cop7.htm




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• ISO 14064-3: Specification with guidance for the validation and verification of greenhouse gas assertions enounces requirements for selecting GHG validators/verifiers, establishing the level of assurance, objectives, criteria and scope, determining the validation/verification approach, assessing GHG data, information, information systems and controls, evaluating GHG assertions and preparing validation/verification statements.

Finally the use of the Guidelines for National Greenhouse Gas Inventories (2006 Guidelines)

issued by the International Panel on Climate Change (IPCC) upon invitation of the United

Nations Framework Convention on Climate Change (UNFCCC) shall be necessary to

develop successful CDM projects. The 2006 Guidelines are divided into five volumes and

provide methodologies for estimating national inventories of anthropogenic emissions by

sources and removals by sinks of greenhouse gases. The recent revision of the Guidelines

provides good practices guidance based on internationally agreed methodologies to help

countries to estimate their greenhouse gas (GHG) emissions. These guidelines shall be

excessively useful to report GHG inventories to the UNFCCC.

Regarding regional power projects in the NBI countries, the applicable section of the IPCC

guidelines is included in Volume 2: Energy.

10.1.3 Advantages for the host country

The prime objective of the CDM is to contribute to the sustainable development objectives of

the non-Annex I countries.

Taking into account the fact that investments provided for the CDM will be made in

developing countries and that they will generally be financed by countries (“Parties”, or

authorized legal entities, within the meaning of the Protocol) or companies from these later.

This innovative mechanism can be considered as a new source of funding for projects.

The role of the CDM is to support project that can:

a. Contribute to the local environment;

b. Contribute to the economy in parallel, and generate positive social impacts;

c. Encourage Foreign Direct Investment in new low emission technology transfer;

d. Provide an additional financial contribution to render a project financially viable by lowering the cost of its implementation and operation.



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Accordingly, the appeal of this new system for host countries is that it can set up structures,

in an increasing number of developing countries, for the promotion, support and validation of

these projects.

10.2 Requirements and issues related to CDM projects

10.2.1 Basic CDM Project Requirements

Real and Measurable GHG Emissions Reductions

CDM projects must lead to real, measurable reductions in greenhouse gas emissions, or

lead to the measurable absorption (or “sequestration”) of GHGs in the Nile basin countries.

The “project boundary” defines the area within which emissions reductions occurs.

Emissions reductions must occur on the project site or “upstream” from the project. For

example, in projects that reduce electricity use through efficiency or fuel substitution in a

region where power is produced from fossil fuels, the emissions reductions occur upstream

at the power plant.

Additional GHG Emissions Reductions

GHG emissions from a CDM project activity must be reduced below those that would have

occurred in the absence of the project. In fact, it must be shown that the project would not

have been implemented without the CDM. Without this “additionality” requirement, there is

no guarantee that CDM projects will create incremental GHG emissions reductions

equivalent to those that would have been made in Annex I countries, or play a role in the

ultimate objective of stabilizing atmospheric GHG concentrations.

There are six eligible GHGs: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O),

hydrofluorocarbone (HFC), perfluorocarbon (PFC) and sulphur hexafluoride (SF6). A project

can only be eligible if emissions of one or more of these GHGs are reduced.

All CDM projects, therefore, require the estimation or measurement of “baseline” emissions

— those that would have occurred without the project — and actual emissions that occur

after a project has been implemented. For example, a wind power generation project might

displace emissions from an existing fossil fuel power plant in a region or delay the

construction of a new plant. The emissions reductions from improved fuel efficiency in an

industrial process would be measured against existing plant emissions. Section 10.4




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provides more details about how to select the boundaries of a project and establish its

baseline.

Sustainable Development

All CDM projects must contribute towards sustainable development in the host country and

must also be implemented without any negative environmental impacts. To ensure that

these conditions are met, host countries determine whether the CDM project activity meets

the sustainable development objectives in their country, and also decide whether an

environmental assessment of the project is required. More details and guidance on defining

Sustainable Development priorities are given in Section 10.3.4.

10.2.2 Project Participants

In general, the following represent the participants involved in CDM projects. In some cases,

the project proponent may also include the CER purchaser, should the company choose to

play an active role in the development of the project, in addition to receiving the CERs.

Project Proponent: An entity, such as a company or local NGO, that develops and

implements a CDM project.

CER Purchaser: A company that invests in the project or purchases CERs generated by the

project.

Host Country: The developing country in which the CDM project takes place.

Executive Board: The supervisory body of the CDM, accountable to the Conference of the

Parties, that oversees the global negotiations on climate change until the Kyoto Protocol is

ratified. The Executive Board was elected at COP 7 and comprises 10 members of the

Parties of the Protocol, representing various economic blocs. For more information on the

Executive board, visit the UNFCCC CDM Web Site at www.unfccc.int/cdm.

Designated Operational Entity: An independent legal entity designated to validate CDM

activities and emissions reductions. The Designated Operational Entity is accredited by and

accountable to the Executive Board. Project Proponents may designate the Designated

Operational Entity of their choice from a list maintained by the Executive Board.



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10.2.3 Eligibility to participate in the CDM

All projects that satisfy the additionality and sustainable development criteria are acceptable

under the CDM. However, CDM credits will only be granted to national governments and

companies in Annex I countries that have ratified the Kyoto Protocol and agreed to meet

their obligations under the Protocol regarding compliance and reporting of emissions. There

is no legal limit or ceiling on the number of CDM credits that an Annex I country can use to

meet its Kyoto reduction target; however, individual countries may enforce internal limits or

targets.

The Executive Board has decided that a project can have more than one host country. This

former aspect is thus very relevant for interconnection transmission lines, or hydro projects

on the Nile River running along borders.

10.2.4 CDM Project Costs

The costs of a CDM project include those of the project itself and the additional “transaction”

costs associated with using the CDM.

10.2.4.1 Project Costs

Considering power generation investments, project costs shall include the following

categories:

• Project design costs, including engineering studies and financial analysis.

• Capital costs or, if the project upgrades an existing system, the incremental capital costs of a low-emissions option over a baseline technology.

• Fuel and operating costs, or the net increase or decrease in fuel or operating costs over baseline technology.

10.2.4.2 Transaction Costs

It is important, for a project developer, to evaluate the costs due to the CDM process, known

as “transaction costs”. These additional CDM project costs are detailed in Box 10.1.

CDM projects will also incur costs related to contractual, or legal, arrangements that are not

normally encountered in other development projects. For example, a broker, or intermediary,

may be required to facilitate the project transaction or a CER purchase agreement (see




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Section 10.2.5). Other related legal fees may also apply (see Section 10.2.6 for more

details).

In general, CDM project transaction costs can run as high as $200,000 for a large project8.

Box 10.1 Transaction costs

Project preparation phase

• Selection of baseline methodology and estimation of emissions reductions

• Preparation of a CDM CER purchase agreement

• Host country approval, stakeholder input, and environmental assessment

• Preparation of the Project Design Document (PDD)

• Project validation by a Designated Operational Entity

• Registration fee

Project operational phase

• Emissions reduction measurement

• Validation by a Designated Operational Entity

• 2% adaptation fee

Source: adapted from Pembina 2003

10.2.4.3 Small-scale projects

The baseline setting and approval processes for small-scale CDM projects will be simplified

or eliminated, significantly reducing the transaction costs for these projects. Regarding

power generation investments, small-scale project are defined as renewable energy project

activities with a maximum output capacity equivalent of up to 15 megawatts. As regional

power projects in NBI countries are not likely to include such small initiatives, this case will

not be detailed in this report. More details on simplified procedures for small-scale projects

can be found in CDM - Information and Guidebook, Second Edition UNEP9 (Sections 4.1.3

and 5.3).

8 See Table 2, page 24, Guide to the Kyoto Protocol project mechanism, 2nd edition, Clean Development

Mechanism (CDM), 2004, for more details on transaction costs http://carbonfinance.org/docs/b_en_cdm_guide_ld.pdf

9 See CDM - Information and Guidebook, Second Edition, UNEP , 2003 http://cd4cdm.org/Publications/cdm%20guideline%202nd%20edition.pdf

About 10% of

transaction costs



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10.2.5 Financing Options in a CDM Project

In most cases, selling CERs through the CDM will provide only part of the financing

necessary for the project. A project developer wanting to use this source of “carbon

financing” to make a project feasible will still need conventional financing. Nevertheless, the

sale of the CERs from the project will provide the additional revenue or start-capital to make

the project feasible, or remove other barriers that favour the baseline technology.

An Annex I country or company participating in the CDM may choose from a variety of

financial options to gain CERs from a CDM project:

• Full or Partial Equity: A company finances all of a CDM project, or co-finances part of a CDM project, in return for full or shared financial returns and CERs;

• Financial Contribution: A company financially contributes towards the cost of a CDM project an amount equal to some portion of the incremental cost of the project over and above the baseline technology, or finances the removal of market barriers, in return for CERs;

• Loan: A company provides loan or lease financing at concessional rates in return for CERs; or,

• Certified Emissions Reduction Purchase Agreement: A company agrees to buy CERs as they are produced by the project.

10.2.5.1 Full or Partial Equity

An investing company may finance all or part of the capital cost of the CDM project in return

for both financial and CER returns. The level of financing will depend on the type of project.

For example, projects with relatively large capital costs, such as building hydropower dam

facilities, may benefit from co-financing from the investor. As in any foreign investment, the

level of involvement of an investor will represent a balance between the amount of equity

required to implement the project and the risk involved, as well as the expected rate of return

based on the value of the CERs.

The particulars of the financial arrangement are determined on a project-by-project basis by

the local project proponents and the potential investing company. The ownership of CERs

becomes the subject of an annex to the conventional financing agreement. The agreement

should stipulate the nature of the returns of the investing company; for example, an investor

may request either full or shared financial returns, as well as CERs.




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If a company is using the CDM solely to obtain credit for emissions reductions, a financial

contribution or CER purchase agreement is a better option (see below).

10.2.5.2 Financial Contribution

For power investment projects, a financial contribution is used when a company finances

part of the incremental cost of the low-emission technology over the baseline technology.

In most cases, the company makes the financial contribution at the beginning of the project,

and receives the rights to the CERs as they are produced. This should be clearly stipulated

in a contractual arrangement between the project proponents.

Risk assessment and due diligence are still important parts of project development, but in

this case it is the risk associated with the emissions reduction that must be assessed.

Questions regarding the reliability of the technology and the certainty of the reductions, for

example, should be considered.

Financial contributions can be used to obtain credits on any project where an incremental

can be easily identified including renewable energy power plants. Although the level of

contribution may vary from project to project, the contribution would normally amount to no

more than 10% of the total project cost.

Emissions reduction projects financed by the World Bank Prototype Carbon Fund (PCF) are

good examples of projects where a financial contribution is used to secure a stream of CERs

with up-front co-financing. The financial contributions for selected PCF projects are provided

in Table 10.1 In general, the PCF limits its funding to 2% to 10% of the total project cost, or

limits its contribution to a maximum of US$5/tonne of CO2 10.

10 See http://carbonfinance.org/Router.cfm?Page=PCF&ItemID=9707&FID=9707 for more information on

Prototype Carbon Fund



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Table 10.1 Summary of PCF Financial Contributions to Selected CDM Projects

Project Total Project Cost (US$)

PCF Contribution

(US$)

Basis of PCF Contribution

Schedule of PCF Contribution

Wind power facility, Honduras

$58,000,000 $4,048,275 Sale of carbon credits (at US$3.50/tonne CO2)

Contributions to be paid on an annual basis for 10 years

Two wind farms, Morocco

$200,000,000 By competitive bidding

PCF funding to supplement electricity sales in order to capture commercial rate of return to investors

Payment schedule to coincide with payment schedule under power purchase agreement

Three micro-hydro facilities, Guatemala

$320,000 $15,000 Up-front value of 4,755 tonnes CO2 over 10-year period

PCF to provide up-front financing

Geothermal facility, Guatemala

$30,000,000 Not specified Sale of carbon credits Yearly contributions starting when CO2 displacement begins

Run-of-river hydro plant, Chile

$34,000,000 $3,400,000 10% of total cost

Initial payment followed by balance payments as emissions reductions are generated

Source: based on Pembina 2003.

10.2.5.3 Loan

Another option is to provide partial financing for a CDM project in the form of a loan to the

local proponents, to allow them to implement the emissions reduction project. In such cases,

the loan principal would be repaid over an agreed upon period, with a return in the form of

CERs rather than a financial return.

10.2.5.4 CER Purchase Agreement

As an alternative arrangement to the up-front financing of a CDM project, a company may

wish to buy emissions reductions as they are produced. In this case, payment for the CERs

becomes an additional revenue stream for the project host. For example, in a small hydro or

wind power generation project, payment for CERs provides an annual income, along with

payment for electricity produced.

This option reduces the risk to the buyer of the CERs as all of the risk associated with

generating the emissions reductions remains with the project developer. It also makes the

transaction of purchasing credits as simple as purchasing a product. The project developer,




10-12

however, must ensure that the sale price of the credits reflects all of the costs and risks

associated with registering the CDM project and verifying the emissions reductions. A CER

purchase agreement formalizes the agreement to purchase the credits from the CDM project

as they are produced. In many ways it is similar to a power purchase agreement, used by

independent power producers. The CER purchase agreement should be finalized before the

project is implemented, and can be used by a project developer to obtain conventional

project financing and to steer the project through the CDM approval process.

10.2.6 Risk, Ownership, and Legal Aspects

Besides the normal financial and other risks associated with any new project, there is also a

risk with CDM project that the emission reduction may not occur.

Assessment of the risk of emission reductions not occurring becomes an important part of

the due diligence assessment of the project for companies taking an active investment role

in a CDM project or making an up-front contribution towards the cost of the project in return

for future CERs. Conservative selection of baselines and clear emissions monitoring

protocols will help to reduce the risk of overestimating emissions reductions. (Section 10.4

provides the necessary details to ensure these elements are considered.)

Political risks and natural hazards that could reduce the ability to generate CERs need to be

considered. Although this type of event is beyond the control of both the buyer and seller,

both parties must come to an agreement regarding the ultimate responsibility for CER

production should such an event occur. Financial tools such as hedging, guaranties and

insurance products can be used to minimize the risk.

Investment agreements must clearly state how risks will be mitigated and shared. If a CER

purchase agreement is being used, all of the risk is borne by the project developer or host,

and this must be reflected in a higher price per tonne of emissions. The investment

arrangement — which should be negotiated prior to project implementation — may be

influenced by two factors:

• The financial arrangement that has been negotiated: For example, a company that prefers to simply purchase CERs as they are produced will most likely not be a direct participant in the project; in this case, the seller assumes all the risk and may, as a result, sell the CERs at a premium.

• The ability of the project proponents to fulfill certain project approval requirements: For example, a company may have acquired knowledge in baseline determination



10-13

and thus be well suited to carry out the emissions reduction calculation (i.e., to be more directly involved than simply acting as a buyer). Doing so may help reduce the risks associated with the verification of CERs. As a result, the investing company may be able to negotiate a lower price.

It may be prudent to hire a qualified independent verifier to ensure the validity of the CERs.

However, the buyer and seller will have to work out between themselves which entity will pay

this cost. In cases in which the seller is simply purchasing CERs, this cost will be borne

solely by the seller.

10.3 Establishing a National Authority

A CDM Project must be validated by the Designated National Authority (DNA). This DNA has

the responsibility of validating the project based on the sustainable development priorities

defined by the host country.

This section which is mainly based on the document Establishing National Authorities for the

CDM - A Guide for Developing Countries of Christiana Figueres (2002)11, details the steps to

undertake in order to properly set the DNA which will play a critical role in the CDM project.

10.3.1 Definition

The DNA is the National Entity with authority (both legal and technical) for CDM project

assessment, in other words responsible for:

• Evaluation and approval (written);

• Confirming compliance with national and international criteria;

• Confirming support to Sustainable Development and national development priorities.

This entity is required by the Annex Decision 17/CP7 of the Conference of Parties 7 which

stipulates: “To participate in CDM, parties must designate a NA”.

10.3.2 DNA functions

The DNA has two main functions: a regulatory function and a promotional function.

11 Electronic document available at http://www.cckn.net/pdf/cdm_national_authorities.pdf




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10.3.2.1 The Regulatory Function

The regulatory function is mandatory according to the international agreement. It constitutes

a prerequisite for project validation and certification.

Indeed the DNA will have to ensure the evaluation and approval of projects.

Evaluation and approval of the project will consist in assessing if the CDM project

contributes to Sustainable Development (SD) in the host country and if it complies with

national and international criteria in order to:

• Increase probability of success;

• Create incentive for specific projects and/or priorities; and

• Reduce perceptive and real risks for national and foreign investors.

The four steps to set up an evaluation and approval process are the following:

• Adopt international criteria;

• Develop national criteria;

• Establish national procedures for evaluation; and

• Establish guidelines for project presentation.

International criteria

The DNA will have to become familiar with the adopted international eligibility criteria in order

to secure the benefits. This acknowledgement will enable it to verify that the CDM projects:

• Assist Non Annex I parties in achieving both SD and the ultimate objective of the UNFCCC;

• Result in real, measurable and long-term benefits related to mitigation of climate change;

• Result in reduction of emissions that are additional.

Box 10.2 outlines some of the key international elements that should be assessed as part of

the national evaluation process.



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Box 10.2 Key international criteria

Source: Figueres C., 2002

National criteria

In the same way, the national evaluation and approval process aims at confirming the

projects’ contribution to sustainable development based on the framework of the CDM

national climate policy and/or carbon offset strategy. Therefore, the DNA has to develop

national criteria which should be based on those listed in Box 10.3. In choosing the criteria

that are relevant for the host country, the DNA should take into account that the more criteria

it will select, the more expansive will result the preparation and then the transaction costs.

Eligibility of project type: • Consistency with UNFCCC decisions. Additionality: • Preparation of a quantitative baseline assessment. • Inclusion of a qualitative description and justification of baseline scenario. Measurability: • Quantification of impacts of project interventions on carbon stocks and flows (difference

between baseline and project scenario). • Projections of and accounting principles for emissions reductions projections and the

carbon offsets generated and accumulated over the project’s lifetime. • Accounting provisions for dealing with permanence and reversibility of project

interventions. Externalities: • Provisions for management of leakage. • Provisions for management of other risks related to carbon stocks and flows. Securing carbon benefits: • Monitoring plan assessment. • Suitable provisions in the monitoring plan for preparing and facilitating periodic verification

and final certification of emission reductions.




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Box 10.3 Key national elements which should be evaluated

1. Compliance with relevant policy and regulatory regimes National scope:

• Compatibility with national sustainable development objectives.

• Congruence with the national climate policy and/or carbon offset strategy.

• Eligibility of the project proposal according to a positive or negative list of eligible CDM activities, technologies and/or sectors, eventually adopted by the host country.

Sectoral scope:

• Compliance with related political and legal framework.

• EIA in accordance with procedures as required by the relevant sector.

Local scope:

• Compatibility with local priorities, as stated in local development agendas.

• Comments by local stakeholders directly and indirectly involved with the project.

2. Financial Review • Review if project is dealing with a negative cost mitigation option and, if so, describing barriers that have impeded the project from being implemented.

• Excluding the use of official development aid for project funding.

• Overview of financing structure.

3. Technical and institutional feasibility Management capacity

• Description of the institutional arrangements and participation of each institution’s in the implementation of the project.

• Previous experience and performance in the field.

Infrastructure and technical capacity

• Local availability of qualified human resources.

• Local availability of adequate institutional resources.

Transfer of technology and know-how

• Description of the implications for local institutional enhancement.

• Description of the implications for national capacity building.

• Description of technology transfer.

4. Special consideration of other environmental and developmental impacts Additional environmental, socio-economic, technical and institutional benefits (and costs) that are considered relevant. Source: Figueres C., 2002

Guidelines for project presentation

The project proponent has to describe the project features in the Project Design Document

(PDD) form established by the UNFCCC. This document will assess the international criteria.

However, to be able to evaluate the national criteria, the DNA may add sections to the

existing PDD form or require an additional document to collect the information. In all cases,

the DNA has to supply transparent and consistent guidelines to the project proponent on the

way to present the project.



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National procedures

To attract project investors in the host country, the DNA shall standardize a transparent and

quick process to screen, evaluate and approve CDM projects.

Figure 10.1 illustrate a possible evaluation procedure.

Figure 10.1 Evaluation procedure

Source: Figureres C., 2002

Tracking and reporting to the UNFCCC Secretariat

Regulatory functions also include tracking and annual reporting to the UNFCCC secretariat.

For this purpose, the DNA must design a system for registering and tracking the holding and

transfer of CERs of the project. This tracking system, preferably electronic, should facilitate

the drafting of the annual report.

Receipt of documents PRIMARY SCREENING

Does it comply?

Return for Reformulation

SECONDARY SCREENING

Consultation period

Provide Additional Information

Reformulate

Does not qualify

End

Approval

Letter of Approval

NO

YES




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10.3.2.2 The Promotional Function

The promotional function is voluntary for the host country and it is not regulated

internationally. Its adoption should suit the specific necessities of the host country from the

point of view of capacity building and marketing development.

Capacity building

The capacity building offered by the DNA shall support the project proponent in the

implementation of the CDM project in several areas, listed in Box 10.4.

Box 10.4 Capacity building opportunities areas

1. Project Identification and Formulation DNA can hold training sessions for project developers during which they are shown how to identify carbon mitigation projects, and they start to familiarize themselves with UNFCCC, carbon market, and the PDD form.

2. Baselines Definition DNA should also train project developers on the different approaches to baseline definition and on the corresponding consequences on the transaction cost and in meeting emission reduction verification requirements. They should also know how to properly document the establishment of baselines. Moreover, in order to lower project preparation costs, the DNA may establish national baseline parameters for each of the main project sectors.

3. Quantification of Emissions Reductions Due to the critical role that estimated emissions reduction potential can play in financing decisions for CDM projects, it is important that project developers are knowledgeable about the procedures for estimating the emissions reduction potential of CDM projects.

4. Project Monitoring A monitoring plan should be established that is transparent and in accordance with international standards in order for independent third party agents to verify the results. To enhance the capacity and knowledge on monitoring requirements for CDM projects, the DNA should provide training for project proponents on efficient and accepted methods of collecting the required project indicators. Source: based on Figueres C., 2002

Marketing

Marketing is another important task to be performed by the DNA. As the CDM market is

highly competitive for host countries and quite restrictive (partly because of the exit of the

United States from the Kyoto Protocol) only high quality CDM projects will be able to prevail.

Therefore, a host country interested in being actively engaged in the carbon market needs

an aggressive marketing strategy. It should take full advantage of international experiences,

internal and external consultants that provide inputs for identification, formulation and



10-19

development of proposals for potential CDM project activities, as well as multilateral banks

acting as intermediaries for buyers in addition to brokers that bring potential buyers and

CERs suppliers together.

10.3.3 Initial assessment

Prior to creating a Designated National Authority, it is advisable to undertake a quick

assessment of the political and institutional feasibility of setting up an effective entity. This

first evaluation should mainly consider the political environment and the technical expertise.

The items to be assessed are listed in Box 10.5.

Box 10.5 Political and technical prerequisites to create a DNA

1. Political Elements Kyoto Protocol ratifying Developing countries wiling to participate in the CDM must have ratified the Kyoto Protocol.

Political stability These long-term effect projects need a frank commitment to the CDM concept. It may be necessary to work with the opponent groups (climate change sceptics, environmentalists, activists…) in order to identify with them how national needs can be met through the CDM.

Institutional rivalries The institution which drafts the National Communication (NC) for the UNFCCC is usually a scientific one and may become involved in the DNA, but it is not necessarily the ideal institution to head it up. Given the various functions of the DNA (see section 3.2 & 3.6) it is advisable for it to have participation from various sectors. Thus, there may be competition between institutions, which desire control over the new program. Relevant institutions should be brought together to discuss common interests in the CDM.

Level of inter-institutional and intersectoral communications The variety of CDM projects types gives a crucial importance to the efficiency of the intersectoral and inter-institutional channels of communications.

2. Technical expertise

General level of Interest and Understanding It consists in evaluating how much general awareness rising is needed to build the institutional capacity.

Level of technical/scientific expertise for project development and evaluation It determines the level of external capacity building needed for developing, appraising and approving CDM projects.

Availability of Resources Availability of resources can be assessed through the identification of the stakeholders and an institutional analysis (whether there is a critical mass of support to establish a DNA).

Source: based on Figueres C., 2002




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As shown on Table 10.2, all the countries of the Nile Basin have ratified and put in force the

Kyoto Protocol since 2005.

However it is noticeable that all the CDM potential of these countries remains underexploited

since only five large scale and four small scale projects are currently registered for the

9 countries.

In addition, this table stresses that the NC author is sometimes the same entity as the DNA

officially registered at the UNFCCC. As mentioned earlier this solution is not always the most

efficient considering that day-to-day tasks involved in preparing and processing CDM project

activities could be carried outside of a state administration, to ensure greater and more rapid

scope for action.



10-21

Table 10.2 NBI countries and climate change

Source: UNFCC website

Abbreviations used in the table: NC: National Communications NAPA: National Adaptation Program of Action Both are national reporting documents submitted to the UNFCCC.

Country Kyoto

Protocol ratification

Registered CDM projects NC NAPA Registered DNA NC author

Burundi 2001/10/18 N/A Yes Yes None Ministère de l`Aménagement du Territoire, et de l`Environnement


2005/03/23 N/A Yes Yes Ministère de l'Environnement

Ministère des affaires, foncières, environnement et développement touristique

Egypt 2005/01/12 4 large scale projects

Yes No Egyptian Environmental Affairs Agency (EEAA)

Egyptian Environmental Affairs Agency (EEAA)

Ethiopia 2005/04/14 N/A Yes No Environmental Protection Authority (EPA)

Tadege, Abebe

Kenya 2005/02/25 N/A Yes No National Environment Management Authority (NEMA)

Ministry of Environment and Natural Resources

Rwanda 2004/07/22 N/A Yes Yes Environment Unit in Ministry of Lands, Environment, Forestry, Water and Mines

Ministry of Lands, Environment, Forestry, Water and Mines

Sudan 2004/11/02 N/A Yes Yes High Council of Environment and Natural Resources (HCENR)

Ministry of Environment and Physical Development

Tanzania 2002/08/26 1 small-scale project 1 large scale project

Yes Yes Division of Environment, Vice-President's Office

Ministry of Environment Centre for Energy Environment, Science and Technology

Uganda 2002/03/25 1small-scale multi-location project

Yes No National Climate Change Steering Committee (NCCSC) Ministry of Water and Environment,

Ministry of Water, Lands and Environment




10-22

10.3.4 Sustainable Development Criteria

The analysis of current policies and regulations in the Nile basin countries has revealed a

diversity of environmental and social policies and regulations within the Nile basin countries

and, in general, the absence of clear sustainable development policy. Consequently, the

relevant governmental authorities should define sustainable development policies and

priorities and/or reinforcing social and environmental legislations allowing the development

of criteria and requirements which will be necessary for the project validation by the DNA.

While many countries will take different approaches to setting Sustainable Development

(SD) criteria for CDM projects, it is useful to define a basic set of sustainability principles. In

general, any project should contribute to three types of sustainability:

Ecological Sustainability

• Maintain productive capacity and renewability of species and of biologically productive land and water surfaces;

• Maintain Earth’s life support systems, including living ecological processes and functions, and global physical systems;

• Preserve biological diversity.

Economic Sustainability

• Provide all with meaningful employment and a place to make a contribution;

• Create sufficient wealth to allow all to meet their needs, and attain a high quality of life;

• Drive innovation and technology improvement, meeting human needs with fewer resources and less ecological damage;

• Maintain physical and social infrastructure and knowledge assets for future generations.

Social Justice and Equity

• Maintain cultural identity and respect;

• Empower and support the participation of individuals, while protecting the strength and viability of community;

• Equitably share natural resources and the benefits of development;



10-23

• Provide equal access to nutrition, health, education, self confidence, and opportunity;

• Foster peace and security.

Amongst the Nile basin countries Kenya have already begun to identify criteria for CDM

projects. Others countries like Egypt or Tanzania have also formalized Sustainable

Development priorities.

The lists presented in Box 10.6 have been compiled from different country’s CDM criteria.

Appendix 9 provides extracts of Tanzania SD strategy as well as CDM project guidelines

developed by Kenya as illustrations of what can be expected from host countries.

Box 10.6 Criteria that can be used for CDM project screening

Social Criteria

• Improves quality of life, especially for the very poor

• Alleviates poverty (e.g., by providing regular income)

• Improves equity (e.g., by improving the income of poor women) Economic Criteria

• Provides financial returns to local entities

• Results in a positive impact on balance of payments (e.g., through new investment)

• Transfers new technology Environmental Criteria

• Reduces GHGs and the use of fossil fuels

• Conserves local resources

• Reduces pressure on local environments

• Provides heath and other environmental benefits

• Meets local renewable energy portfolio standards and other environmental policies Source: Pembina, 2003

Once the criteria defined, the next step in the assessment process is to define SD indicators

that will reflect them in order to be able to measure the performance of the project regarding

these specific points.

First of all, an SD indicator as to be comprehensive (i.e., reflecting the environmental,

economic and social dimensions of SD) and measurable (unambiguous and obtainable with

no excessive effort) in order to be useful to the decision maker.




10-24

Regarding CDM projects, the host country shall select a set of SD indicators that are:

a. Complete to verify that the overall objective of sustainability has been met (local and global, three dimensions of SD);

b. Operational: balance coverage of the area, unambiguous, policy-relevant;

c. Decomposable: the set of indicators should be breakable into different section to facilitate the decision making;

d. Non-redundant in order to avoid double counting;

e. Minimal: as small as possible in order to reduce the dimensionality of decision problem and reduce the costs of measuring process and assessment process.

More detailed information and examples of potential SD indicators are presented in the CDM

- Information and Guidebook from the UNEP, Section 312.

10.3.5 Steps in Creating a DNA

Once the initial assessment is accomplished indicating favourable conditions for the DNA,

the steps provided below present a general framework for establishing a DNA.

1. Define the DNA’s mission and objectives

It must at a global level contribute to the ultimate objective of the Convention, and at the

domestic level it should help meet national sustainable development goals.

2. Obtain official status

Seek support of political entities such as Ministries of Environment, Energy, National

Resources, etc; and establish a legal framework via Presidential or Ministerial Decree or any

other legal instrument. This legal instrument shall contain justifications, authorities,

objectives and organisational structure, financing functions and procedures that will be the

platform for the development and sustainability of the DNA. Furthermore, the DNA should

have the authority to grant export of emissions right (CERs).

12 3.1.2 How to select SD indicators (page 19) and 3.1.3 Examples of potential SD indicators that can be

applied to CDM project evaluation (page 20), available at http://cd4cdm.org/Publications/cdm%20guideline%202nd%20edition.pdf



10-25

3. Review and establish national legal framework

A review of the national legislation is crucial. The legal framework of a host country will

directly affect the success of the national authority. Depending upon the development

priorities of the host country, some legislation might be compatible with CDM. As such with

trade and investment in general, those host countries with most transparent rules and most

streamlined procedures, will be in the best positions to compete for CDM resources.

At this level, the Nile basin countries will be able to refer to the review of national legislation

made under this study and presented.

4. Align program strategies with national sustainable development priorities

National strategies for CDM should be based on local sustainable development objectives. It

is important to identify national policies already established for social and economical

development in areas related with climate change such as energy, land use change and

forestry, industry, etc. These policies will ultimately have the greatest impact on national

resources and the environment at the local level and on climate change at the global level.

CDM is a real opportunity to channel resources towards projects that are most likely to

further national development priorities.

5. Attain broad stakeholder participation

This is one of the most challenging steps. Some countries have centralised programs within

the central government institutional framework. Others have achieved active participation

from all sectors of the society and different sectors of the economy. Including participation of

the private sector encourages a less bureaucratic, more result-oriented and business-like

approach. Private and public developers together or by themselves are the real actors and

the driving force for the implementation of cost-effective mitigation options.

6. Obtain financial and non-financial resources

Funds will be crucial and the source of funds will depend on stakeholders’ involvement.

DNAs based on public funding may face funding constraints and one way to deal with is to

broaden the sources of in-kind support from stakeholders for items such as the physical

facilities for offices as well as logistic assistance such as financial and accounting




10-26

management support from private or NGO entities. This will allow for more flexibility to the

NDA. Operational costs for running a NA might also be financed via a small commission fee

on CER trading.

7. Staff the NA

The staff for the DNA will typically be donated from government agencies in part or full-time

regime. This team shall benefit from the assistance from NGO’s and/or private companies

(consulting hours).

8. Establish relationships with the national focal point for climate change and other ministries

The DNA needs to have open communications with the government agencies of the sectors

relevant to the CDM for technical review and national approval activities. The DNA staff

members shall also represent their country at the climate change negotiations.

10.3.6 Tasks assigned to the DNA

To sum up, according to Paulo Manso13, from the OECD, the DNA would carry out the

following tasks:

• Carrying out secretariat duties for the CDM Board;

• Serving as a focal point and provide support for investors/buyers;

• Promoting the CDM project approach;

• Providing potential projects for investors;

• Processing framework agreements with investors/buyers;

• Assessing statements made on environmental impact;

• Providing legal advice for investors/buyers;

• Coordinating with other official entities and authorities;

• Drawing up standardised baselines;

• Monitoring ongoing CDM projects;

• Conducting public relations work, updating the web, etc.

13 Establishing a National Authority (NA) for the Clean Development Mechanism (CDM): The Costa Rican

Experience By Paulo Manso, 2003, http://www.oecd.org/dataoecd/11/32/2957712.pdf



10-27

10.4 Frameworks and directives for developing and implementing a CDM for power project

This section shows how the CDM is integrated in the EA Process and details the steps that

should be followed when implementing a CDM project.

10.4.1 Integration of CDM in the EA Process for Regional Power Projects

Figure 10.2 shows an overview of the integration of CDM in the EA process for regional

power projects. The six step process are detailed in the following section.




10-28

Figure 10.2 CDM into the EA process for regional power projects

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10-29

10.4.2 General CDM Process for power projects

The project cycle can be divided into six steps, as shown in Table 10.3. Also provided in the

table are the parties responsible and the official time requirements for certain tasks. If the

DNA role seems to be limited in this representation, it is important to remember that CDM

process frameworks and other preparation activities have to be handled beforehand. This

necessary preparation shall help to attract project proponents and to convince investors.

Table 10.3 Overview of Project Cycle, showing official timelines and responsibilities

Source: adapted from Pembina, 2003

Abbreviations DOE: Designated Operational Entity EB: Executive Board DNA: Designated National Authority

Step Task Timeline Responsible Party

1 Project Screening Project proponent

2

Project Development • Estimate real emissions reductions • Develop emissions monitoring and verification protocol • Prepare investment plan, undertake financial analysis • Draft Project Design Document

Project proponent Project proponent Project proponent Project proponent

3

National Approval • Carry out an EIA if necessary • Invite stakeholders’ comments • Approve the project

Project proponent Project proponent

DNA

4

Validation and Registration • Finalize Project Design Document • Invitation of stakeholder comments • Validation • Registration

30 days 8 weeks

Project proponent

DOE a DOE a

EB

5 Implementation and Monitoring • Implement project • Monitor and record emissions

Project proponent Project proponent

6

Verification and Certification • Verify emissions reduction • Certify emissions reduction • CER issuance

15 days

DOE b

EB EB




10-30

10.4.3 Step 1: Project screening

The purpose of this step is to determine whether the proposed project is eligible to earn

CDM credits. Screening should also be used to ensure that the project meets the project

developer’s and investing company’s own criteria, and to generally assess risks associated

with the project.

This step shall occur at the very beginning of the EA Process for Regional Power Projects,

even before the project proposal is submitted to the National Environmental Agency (NEA)

of the host country.

Table 10.4 summarizes a basic procedure that can be used to screen a CDM project.

Table 10.4 Project screening criteria

Answer Question Yes No

1 Is the project consistent with sustainable development priorities in the host country?

Proceed to next question.

The project is not eligible as this is a crucial element for the CDM.

2 Does the project result in real, measurable and long-term emissions reductions below those that would have happened without the project?


The project is not eligible as this is a crucial element for the CDM.

3 Is the project activity mandated, directly or indirectly, by laws or regulations that are enforced in the host country?

The project is not eligible since the host country would have required the activity anyway in the absence of the CDM.


4 Could the project have been undertaken as a result of normal business investment practice prevailing in the host country without the CDM?

The project is not eligible since it could have occurred in the absence of the CDM.


5 Does the project lead to the transfer of new, environmentally efficient technologies or management practices to the host country?


Technology transferred under the CDM must be the best commercially available in terms of GHG emissions per unit of production.

6 Is the project financed by a pre-existing official development assistance (ODA) program?

The project is not eligible.


7 Does the project meet local country development priorities and have local support?


It will be more difficult to obtain host country and stakeholder approval.

8 Does the project have negative environmental or social impacts?

An EIA may be required and there could be negative international publicity.


9 Is there general stakeholder support for the project?

Proceed with project development.

It is unlikely that the CDM project will be approved by the host country.

Source: Pembina, 2003



10-31

To answer the first question on SD, the project proponent will need to consult the host

country SD priorities and/or policy.

10.4.4 Step 2: Project Development

Once the decision has been made to proceed with submitting a project to the CDM, the

project will need to be analyzed and developed in more detail. The following activities are

involved:

1. Estimate emissions reductions

• Choose project boundary — the physical area within which emissions reductions occur and the actual types of GHG emissions to be reduced.

• Select project baseline — the “business as usual case” against which emissions reductions are measured.

• Set crediting period — the period over which emissions reductions will be claimed.

• Calculate emissions reductions against baseline.

2. Preparation of the emissions monitoring plan

3. Preparation of the investment plan and initiation of the financial analysis

4. Preparation of the draft Project Design Document

The Project Design Document (PDD) is the official document required by the host country,

Designated Operational Entity (DOE), and Executive Board (EB) for project approval. It

contains information about the project boundary, baseline, expected emissions reductions,

and monitoring plan. The financial analysis provides a measure of how valuable the CDM is

to the project at different carbon prices. The following sections describe in detail the

essential aspects of each of the above steps.

10.4.4.1 Choose Project Boundary

The project boundary clearly identifies the sources and sinks of all six GHGs that will be

reduced by the project, and sets the physical area within which the emissions will be

reduced. All GHG emissions that are “significant and reasonably attributable” to the project

activity must be included.




10-32

Generally speaking, there are two types of emissions related to CDM project activities within

the project boundary: on-site and off-site. GHG reductions (or increases) that result from the

project outside of the project boundary are called “leakage”.

• On-site emissions are those that arise immediately from the project activity itself. For example, when a biomass gasifier is installed in place of a diesel burner at a small manufacturing business, GHG emissions reductions will occur on-site because diesel fuel is being replaced.

• Off-site emissions are those that occur upstream or downstream from the project. The same gasifier project will also reduce emissions in the supply system of the displaced diesel fuel. This would include reduced emissions in oil exploration, the refining process, and fuel transportation.

Where electricity is saved or generated on-site, all of the emissions reductions occur

upstream. For example, a hydropower project will result in a decrease in the demand for grid

electricity. If this electricity is derived from a power grid that uses fossil fuel–based power

plants, there will be a decrease in emissions at these plants. Upstream emissions reductions

from grid electricity savings are usually characterized by an emissions factor that is either

the weighted average of emissions reductions for all plants in the power grid, or the next new

fossil fuel power plant that will be added to the grid (see also Select Project Baseline and

Calculate Emissions Reductions below).

10.4.4.2 Select project baseline

The baseline of a project is a measure of the emissions that would have occurred in the

absence of the proposed project activity, and is used to estimate the emissions reductions

from the project. Baselines for CDM projects are normally determined on a project-by-

project basis and are based on previously accepted methodologies (outlined below).

There are three acceptable methodologies that can be used to measure the baseline of a

CDM project. The choice of which to apply will depend mainly on the type of project, but will

also be affected by the availability of data.

1. Status quo emissions: This approach assumes that without the CDM project future emissions would have been the same as current or historic emissions. Reductions from the proposed project are measured against this future projection, using an emissions factor based on current information. Although relatively easy to measure, and useful in projects that affect grid electricity, this methodology fails to take into account technological developments that lead to more efficient processes, as well as regulatory revisions and significant market restructuring that may affect the intensity of future emissions.



10-33

2. Market conditions: This approach assumes that the technology normally used under current market conditions is the baseline and allows market barriers, such as lack of financing and product distribution channels, to be taken into account when selecting the baseline. This is particularly important where these barriers discourage adoption of otherwise cost-effective high efficiency technologies.

3. Best available technology: This approach is most useful in rapidly changing markets where historic emissions are not relevant, and the “best commercially available technology” is used as the baseline. It takes the average emissions of similar project activities undertaken in the previous five years (in similar social, economic, environmental, and technological circumstances), whose performance is among the top 20% of their category.

Sometimes, a combination of the above methodologies is required to reveal a complete

picture of what would have happened in the absence of the project activity. If none of these

methodologies is applicable to the project activity, a new methodology may be proposed.

However, newly proposed methodologies must be approved by the Executive Board before

the project can commence, so this approach may delay implementation. Regardless of the

chosen methodology, a baseline must meet the following criteria:

• It must be established in a transparent and conservative manner, regarding the choice of approaches, assumptions, methodologies, parameters, data sources, and key factors.

• It must take into account relevant national and/or sectoral policies and circumstances (e.g., sectoral reform initiatives, local fuel availability, and the economic situation in the project sector). Equally important are any proposed or anticipated future policies that may affect the project or baseline scenario, as these may change the overall situation and, therefore, the allowable credits (which, in turn, will have an impact on the financial gain of the project). It is advisable to obtain, in writing, any relevant government or business documents whose content is anticipated to have an impact on the project scenario.

• It must provide a justification of the appropriateness of the baseline choice.

When emission reduction occur upstream from a project within an electricity grid and there is

no obvious baseline power plant that can be used as a baseline, then a weighted average

regional grid emissions coefficient should be used. This approach allows the use of

published or commonly used standard emission coefficients for the local or regional power

grid based on current common characteristics of the grid. These include annual power

production and efficiencies for each power plant (hydro, coal, geothermal) in each year that

CERs will be claimed. These coefficients will be the same for all CDM projects operating in

the region, unless the project specifically addresses one aspect of the load curve — e.g., it

reduces peak demand. In the RPIP perspective, countries of the NBI shall refer to Volume 2




10-34

of the IPCC Guidelines for National Greenhouse Inventories14 to access the coefficients

usually used for power generation projects.

Appendix 10 provides more details and an example of how weighted average emissions

factors can be derived, and shows when and how a baseline should allow for transmission

and distribution losses.

Examples of baseline choices for several projects financed under AIJ or by the World Bank

PCF are provided in Table 10.5 below.

Table 10.5 Baseline methodologies for CDM Power Projects

Type of project Baseline Approach Type of CDM Baseline

Wind power facility, Honduras

Current power is generated by hydropower, with thermal plant back-up. The wind farm would displace the need for the thermal plant, and, therefore, the emissions from this plant were used as the basis for the emissions reduction calculation.

Best available technology. The average emissions of typical thermal plants in the previous five years (in similar social, economic, environmental, and technological circumstances), whose performance is among the top 20% of their category.

Two wind farms, Morocco

Emissions are compared to current fossil fuel–derived electricity (from coal, oil, and gas), measured by carbon intensity. Since future additions of similar oil-based plants were expected, current emissions could be used as the baseline.

Status quo (current) emissions.

Three micro-hydro facilities, Guatemala

The three communities did not have access to electricity, so the analysis was based on the displacement of kerosene lamps for lighting.

Market conditions. Kerosene normally used under current market conditions (market barriers prevent use of more effective technologies).

Source: based on Pembina, 2003

10.4.4.3 Set crediting period

The time period during which credits arising from the project can be claimed is not

necessarily equal to the operational lifetime of the project activity. It is assumed that, without

the project, the baseline technology will gradually improve over time and “catch up” with the

CDM project technology. There are two options for the crediting period of CDM projects:

14 See 2006 IPCC Guidelines for National Greenhouse Gas Inventories Volume 2 Energy http://www.ipcc-

nggip.iges.or.jp/public/2006gl/vol2.htm Chapter 2: Stationary combustion will be used to estimate for coal combustion emissions for power

generation GHG inventory. Chapter 4: Fugitive Emissions will apply to coal extraction and transport fugitive emissions, as well as all

greenhouse gas emissions from oil and gas systems except contributions from fuel combustion.



10-35

• an initial period of seven years, which may be renewed a maximum of two times, for a total of 21 years (renewals are contingent on re-validation of the original project baseline, and, in some cases, the baseline may need to be updated with newly available data); or,

• a maximum of 10 years with no option of renewal.

10.4.4.4 Calculate Emission reductions

After determining the project boundary and the baseline emissions, the net emissions

reductions can be estimated. For each year in the project period, the on-site and off-site

emissions of both the baseline and the project must be tallied. To estimate emissions, it will

be necessary to use an emissions factor specific to the fuel displaced and project and

baseline technologies.

Emissions factors for on-site emissions will be dependent on the following:

• the chemical composition of the fuel used (e.g., carbon content);

• the efficiency of fuel conversion (e.g., fuel combustion efficiency affecting CO2, CO, and unburned fuel emissions); and,

• other characteristics of the technology that affect the production of GHGs (e.g., NOx production related to combustion temperature).

Emissions factors for upstream emissions will depend on the characteristics of the electricity

grid or fuel supply chain. In electricity projects, upstream emissions factors are expressed in

tonnes per kWh and based on either the weighted average emissions from all power plants

used in the grid or the “marginal” or next plant that would added to the grid if the CDM

project were not built. Appendix 10 provides an example of how weighted average emissions

factors are estimated. These factors will depend on the location of the CDM project, but it is

expected that standard emissions factors that can be used by all projects in a given area will

be developed to simplify this process.

In fuel efficiency or substitution projects, the upstream emissions factors will depend on the

energy used to produce and refine the fuel, and the energy used to transport the fuel to the

site. In many projects these emissions are small compared with those on-site, and,

therefore, the supply chain is not included within the project boundary. These emissions,

therefore, become “leakage.”




10-36

The following provides an overview of the steps involved in determining net emissions

reductions. Each step must be completed for each GHG associated with the project. A

template for these calculations is provided in Appendix 10.

Table 10.6 Overview of Emissions Reductions Calculation

1 Estimate Total Baseline Emissions = Baseline On-Site + Baseline Off-Site

2 Estimate Total Project Emissions = Project On-Site + Project Off-Site

3 Calculate Net Emissions Reductions = Total Baseline - Total Project

4 Estimate the CO2 Equivalent Reduction = Net Emissions x Global Warming

Potential15

5 Calculate Total Emission Reductions = Sum of CO2 Equivalent Reductions

Most of the power generation projects eligible to CDM lead to a reduction of upstream or

“off-site” emissions.

10.4.4.5 Develop Emissions Monitoring and Verification Protocol

All GHG emissions related to the project must be measured and recorded throughout the

crediting period. The monitoring of emissions essentially re-tests whether the project is

actually reducing GHG emissions and meeting the condition of real emissions reductions. A

monitoring plan is required for project validation and must be provided in the Project Design

Document (see Section 10.4.4.7 below).

In general, a monitoring plan collects and archives all data relevant for determining all GHG

emissions related to the project activity. These include the following:

• project sources within the boundary area;

• baseline sources within the boundary area; and,

• any sources outside the project boundary that are significant and reasonably attributable to the project.

Most monitoring and verification (M&V) protocols will use a similar approach to that used to

estimate GHG reductions described above. In an M&V protocol, emissions factors are used

to convert actual measured fuel or electricity production or savings into GHG reductions.

Weighted average grid emissions factors are used when a project results in upstream 15 See Appendix 10 for more details on Global Warming Potentials



10-37

emissions reductions and the mix of power plants in the grid may change from year to year

(see Appendix 10).

10.4.4.6 Prepare Investment Plan and Undertake Financial Analysis

Before undertaking a financial analysis of how the value of carbon credits from the CDM will

benefit the project, an investment plan outlining the role of each party (local debt and equity

financing, CER purchaser, etc.) should be prepared. The investment plan should identify the

expected returns (i.e., financial returns and emissions reductions) that each party expects

from the project. See Section 10.2.5 for more details on carbon financing options.

Next, identify the expected conventional financing requirements and arrangements for cost

recovery that would be expected in the project. For example, in a renewable energy–based

power project, conventional financing will be required for the base cost of the technology,

and the sale of the power produced will contribute to cost recovery.

Most companies seeking credits for emissions reductions through a CDM project will be

interested only in contributing to the part of the project that actually reduces the emissions.

In some types of projects, such as small hydro or wind power, the CDM would help finance

the incremental cost of the renewable energy project over the baseline technology (e.g., a

gas-fired turbine or coal plant). In others, such as a landfill gas recovery project, the CDM

might finance the whole project. More details on the types of financial positions that

companies can take to earn CERs in CDM projects are provided in Section 10.2.5.

Once the expected emissions have been estimated, and the financial and investment

arrangements agreed to, a financial analysis should be performed for each investor in the

project, at several CER prices (per tonne). The analysis should include all costs and revenue

streams associated with projects, such as an estimate of capital and operating costs, and

any costs to remove barriers (such as marketing, financing, etc.). It should also include an

assessment of sensitivity and risk. The results will provide an estimate of the financial

returns to each investor, and the impact of the CDM on the viability of the project.

Completing the financial analysis and answering the following questions will help determine

whether the project should be pursued from a financial point of view, and answer the

questions on the project’s “additionality” included in the CDM approval process:




10-38

• Is the project financially viable without the sale of CERs?

• Does the CDM financing or sale of CERs have a sufficient impact on the financial returns from the project or the removal of market barriers to make the project more easily implemented?

• Can financial returns and CERs be recovered effectively and at a reasonable risk?

• Is the investor’s entitled share of CERs satisfactory?

• Are the emissions reduction costs (cost per tonne) satisfactory?

10.4.4.7 Prepare Draft Project Design Document (PDD)

The draft Project Design Document (PDD) sets the basis for the final PDD which will be

submitted to the Executive Board (EB).

The following provides an overview of the major components required in a PDD16

, while the

UNFCCC website is resourceful regarding guidelines17 and real registered CDM project’s

PDDs18

.

Description of the project. A general description of the project should identify:

• the name of the project;

• a listing of all project proponents, including their coordinates;

• the project location, including the host country and regions, as well as a discussion of the physical location of the project activity;

• the project type — for example, reduction projects may be fuel substitution, renewable energy, or energy efficiency projects;

• a description of the technology to be employed, and, if the technology will be transferred (e.g., to local stakeholders), a discussion of how this will be accomplished;

• a brief explanation of the GHG emissions reductions that will occur as a result of the project, including a discussion of why these reductions would not occur in the absence of the project, and a discussion of any relevant national circumstances; and

• a description of the public funding of the project, if relevant.

Baseline methodology. The name of the chosen baseline methodology must be included

(see Section 10.4.2.2 above), along with a discussion of the following:

16 An electronic version of the CDM PDD can be accessed through the UNFCCC Website at

http://cdm.unfccc.int/Reference/PDDs_Forms/PDDs/index.html 17 See http://cdm.unfccc.int/Reference/Guidclarif/index.html 18 See http://cdm.unfccc.int/Projects/registered.html



10-39

• why it was selected;

• how it will be applied in the context of the project;

• how it was established in a transparent and conservative manner; and

• why the project is additional to the baseline scenario.

Duration of the project/crediting period. The starting date of the project must be provided,

and the chosen crediting period must be clearly stated (i.e., 10 years, or 21 years with

baseline renewal every seven years). The expected operational lifetime (which is not

necessarily the same as the crediting period) of the project should also be stated.

Monitoring methodology and plan. As with the baseline, the monitoring methodology

should be chosen from an approved list to be made available on the UNFCCC CDM Web

site. In addition, a justification of the choice must be provided. The monitoring plan should

identify the data used to calculate the emissions reductions, and discuss why this data is

accurate, comparable (i.e., to similar projects), complete, and valid. In other words, it must

show that quality assurance for data monitoring, collecting, and reporting has been

implemented. If a new monitoring methodology is to be used, a detailed discussion must be

presented, including the methodology’s strengths and weaknesses, and whether it has been

applied successfully elsewhere (Annex 4 of the PDD provides a template for this discussion).

Calculation of how GHG emissions are reduced. The net reductions in GHG emissions must

be clearly identified and compared to emissions reductions that would have occurred without

the project activity.

Environmental impacts. A description of the identified environmental impacts, as well as a

discussion of the EIA, if applicable, must be included.

Stakeholder comments. Stakeholders must be consulted prior to the implementation of a

project. Their comments, as well as the ways these comments were taken into account,

must be documented.

Annex 1. Information on participants in the project activities.

Annex 2. Information regarding public funding. Since official development assistance from

Annex 1 countries cannot be used directly in the implementation of a CDM project (purchase




10-40

of CERs), it must be clearly shown that funding support for any part of a project — for

technology transfer, for example — is exclusive of official development assistance.

Annex 3. Baseline information

Annex 4. Monitoring plan

The draft PDD can be prepared by, or on behalf of, the project proponent (e.g., the local

company, community, or NGO in the host developing country) or the company providing the

CDM financing. The information provided at this stage is normally sufficient for a preliminary

investment or CER purchase agreement to be prepared between the project proponent and

the contributing company.

10.4.5 Step 3: National Approval

At this stage, the project process must start to follow the procedures and schedule set out in

the Marrakech Accords. An Environmental Impact Assessment must be performed if

negative impacts are suspected. All CDM projects incorporate stakeholder input and host

country approval prior to implementation. The steps during this stage are as follows:

1. Undertake environmental impact assessment (if required).

2. Obtain stakeholders’ comments.

3. Obtain host country approvals.

The host country shall refer to Figure 10.1 Evaluation procedure to customize the

procedure in this domain.

10.4.5.1 Undertake Environmental Impact Assessment

If either the project proponent(s) or the host country believes that negative environmental or

social impacts from the project activity will be significant, then an environmental impact

assessment (EIA) must be carried out. This EIA will be undertaken in the Environmental

Assessment Process defined in Chapter 7 above either at a national scale or at the regional

scale if it concerns a regional power project (see figure 7.3).



10-41

The results of the environmental assessment must be attached to the final Project Design

Document. Section 10.3.1 provides more details on sustainable development criteria that

may serve as a basis for the EIA.

10.4.5.2 Obtain Stakeholders’ Comments

Local stakeholders and the international community have two opportunities to provide

comments on the CDM project activity. The first is the responsibility of the project proponent,

who must consult with stakeholders to garner input and support for the project. A summary

of this consultation process, as well as the comments received and the ways the comments

were taken into consideration, must be included in the final Project Design Document.

The second opportunity for input occurs when the Designated Operational Entity makes the

Project Design Document public (see Section 10.4.4.7). In this stage, stakeholders and

others have 30 days to provide their comments. The DOE then evaluates the comments and

determines whether the project should go forward.

10.4.5.3 Obtain Host Country Approvals

The project proponent must obtain written approval of the voluntary participation of each

party involved — that is, the country of the project proponent and the host country. Written

confirmation from the host country that the project will achieve sustainable development is

also required. This will be determined either on a project-by-project basis or by assessment

against national sustainable development criteria (see Section 10.3.4).

Host country confirmation must also be attached to the final Project Design Document by the

Designated Operational Entity (see below).

10.4.5.4 Case of multilateral projects

If the project has impacts on several countries of the Nile basin, “multilateral funds do not

necessarily require written approval from each participant’s DNA. However those not

providing a written approval may be giving up some of their rights and privileges in terms of

being a Party involved in the project. A written approval from a Party may cover more than




10-42

one project provided that all projects are clearly listed in the letter.”(CDM Glossary of Terms,

UNFCCC)19

10.4.6 Step 4: Validation and Registration

The validation process is based on the UNFCCC requirements and on the standards ISO

14064-3 (Specification with guidance for the validation and verification of greenhouse gas

assertions) and ISO 14065 (Requirements for greenhouse gas validation and verification

bodies for use in accreditation or other forms of recognition).

Additional stakeholder comments, as well as national approval, constitute the final

requirements for project approval. Once these elements are incorporated into the draft PDD

produced earlier, the PDD may be finalized and submitted to the Designated Operational

Entity (DOE). The DOE evaluates a project against the requirements of the CDM, and then

approves (i.e., validates) the project and refers it to the CDM Executive Board for

registration. Registration is the formal acceptance of a validated project, and must be

obtained prior to project implementation. In its validation of the project activity, the DOE will

ensure the following:

• voluntary participation by all parties (who must be Parties to the Kyoto Protocol) was invited;

• stakeholders’ comments were received and taken into account;

• an analysis of the environmental impacts – and, if necessary, an EIA – was conducted;

• a real emissions reduction will ensue as a result of the project;

• baseline and monitoring methodologies comply with Executive Board guidelines; and

• written confirmation by the host country that the project meets sustainable development criteria has been received.

When the DOE is satisfied that these conditions have been met, it will make the PDD public

for further stakeholder input and receive comments for 30 days. After this time, any

comments are taken into consideration, and the DOE will make a decision on whether to

validate the project.

19 See http://cdm.unfccc.int/Reference/Guidclarif/glossary_of_CDM_terms.pdf



10-43

Once validated, the PDD and any supporting materials are forwarded to the Executive Board

for approval. Approval by the Executive Board results in registration of the project.

Registration is final eight weeks after the Executive Board receives the validated document,

unless further review is warranted. After a project is registered, the CDM registration fee is

paid (see Section 10.2) and the project developer may proceed with implementation.

10.4.7 Step 5: Implementation and Monitoring

Once a project is implemented, emissions must be monitored. It is important to ensure that

the measurement of project-related GHG emissions is done in accordance with the protocol

prescribed in the PDD. Monitoring reports must be forwarded to the DOE (DOEb on

Figure 10.2 and in Table 10.3) so that emissions reductions can be verified and CERs

issued.

Simplified monitoring protocols for small-scale projects may not involve actual measurement

of emissions, but all the necessary information set out in the simplified protocol must be

collected by the project operator to enable verification by the DOE.

10.4.8 Step 6: Verification and Certification

The verification process is based on the UNFCCC requirements and on the standards ISO

14064-3 (Specification with guidance for the validation and verification of greenhouse gas

assertions) and ISO 14065 (Requirements for greenhouse gas validation and verification

bodies for use in accreditation or other forms of recognition).

10.4.8.1 Verify and Certify Emissions Reductions (CERs)

The project developer must select a new OE (DOE b on Figure 10.2 and in Table 10.3)

which must make sure that the certified emissions reductions have resulted according to the

conditions agreed upon in the initial validation of the project.

The DOE will periodically review the monitoring reports associated with the project and will

ensure that GHG measurement is being performed in a prudent manner. In its analysis, the

DOE may conduct on-site inspections, speak with project participants and local

stakeholders, and collect its own data. If necessary, the DOE may insist on additional data,

which it will source. It may also require changes to the monitoring methodology for future

reporting periods.




10-44

Once the DOE is assured that the requirements for verification are met, it will issue a written

confirmation of verification for the project activity. The verification report will be forwarded to

the Executive Board and project participants, and will also be made public. The DOE then

issues a certification report to the public and the Executive Board.

10.4.8.2 Issuance of Certified Emissions Reduction

The certification report serves as the official request for the issuance of CERs by the

Executive Board. Unless a review is required (for example, in cases of fraud or

incompetence attributed to the DOE), the issuance will be deemed final 15 days after the

Executive Board receives the certification report.

The CERs are dispersed by the Executive Board as follows: a 2% adaptation levy (see

Section 10.2.7) will be deposited into the appropriate accounts of the CDM registry; the

remainder will be deposited into the registry accounts of the parties and the project

participants.

10.5 Potential baselines and CDM eligible projects

Table 10.7 identifies the potential baseline scenarios in the NBI countries and therefore, the

eligible projects based on the strategic power investment plans.

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10-46

As summarized here in the second column of table 10.7, the power profile of the Nile Basin

Countries varies a lot (see chapter 3 for more details).

The third column shows the portfolios of the additional power investments illustrating the

strategic power development that have been chosen by the Nile Basin Countries following

the studies handled in the Nile Equatorial Lakes Region and in the Eastern Nile Region in

2007.

The typical baseline scenario is indicated in the table 10.7 as a guideline only as it will have

to be re-evaluated to consider the local parameters of the project (see section 10.4.4.2). In

the same way, the DNA shall take into account the specificity of the project to select and

accept CDM projects among the potential acceptable projects listed here.

This table also takes into account the fact that this study focuses on hydroelectric,

geothermal and natural gas power stations for future development of electricity generation

systems. However, considering the potential baseline scenarios listed for the nine concerned

countries, wind power as well as solar power could be added as eligible scenarios for each

country.

As far as transmission lines are concerned, the same potential baseline scenario has been

identified for the whole Nile basin: a lack of power transmission lines can be identified in

every site where the electricity is provided by local diesel power stations which require the

transportation of fuel by trucks to be fed. This transportation, highly polluting, is the baseline

scenario.

In Burundi, the electricity originates from hydroelectric dams and the country has decided to

continue developing this hydroelectric potential in the future. This means that the production

of electricity in Burundi is not a source of GHG and can hardly be “cleaner”. As a

consequence, to elect projects to access to CDM funds, the Burundi will have to consider

renewable energy projects with less impact on the environment such as wind farms and

solar power stations.

In the case of the DRC, the power development portfolio shows that the new investments will

be made in two directions: around 50% of hydroelectric power and the other 50 % in

methane power. Although the extraction of methane from the Kivu Lake represents many

environmental advantages (Unité de Promotion et d'Exploitation du Gaz du Lac Kivu in



10-47

Rwanda) the production of electricity from methane is not totally neutral for the environment

(escaping of H2S, CO2...). This explains why the hydroelectricity, geothermal and renewable

energy projects are cleaner than the methane fired stations. Moreover a methane power

station is easier and shorter to build and to commission than an hydroelectric dam so that

the methane power station represents a potential baseline more relevant than the

hydroelectric power plant for this country. It is thus easy to understand that any

hydroelectric, geothermal and renewable energy projects will be eligible to the CDM program

if the additionality criterion is demonstrated.

Considering Kenya, the worst scenario regarding the environment for future power

investments would be the construction of a new coal-fired power station. As a consequence,

the list of eligible projects goes from natural gas power stations (GHG emissions are less

important than for coal fuel) to hydroelectric dams (no GHG emissions), including

geothermal power station which would be situated in between on an environmental friendly

scale.

As Rwanda has the same strategic investment plan as DRC, the baseline and potential

eligible projects are the same as mentioned above in the DRC section.

As far as Tanzania is concerned, the power development portfolio designed for this country

indicates that the less environmental friendly scenario would consist in investing in a natural

gas power station. Therefore, the only options that have to be taken into account to access

to CDM credits are the geothermal, hydroelectric and renewable energy power plants.

In the same way as Burundi that plans to develop only hydroelectricity, the projects that

would be potentially interesting for the CDM program in Uganda are less harmful renewable

power projects including wind power and solar power.

Egypt forecasts a strong development of its natural gas power generation facilities in the

next years. Thus, like Tanzania, the projects to be considered by the Egyptian government

for the CDM projects are the geothermal, hydroelectric and renewable energy solutions,

emitting less GHG than natural gas power stations.

In Ethiopia, the energy plan for future investments shows that coal fired plants will be the

more polluting power generation systems among the new installations. As a consequence, it

could be the baseline of a CDM project if it is proven that it would have been the retained




10-48

solution if no additional financing is available. In such a scenario, the eligible projects would

be, from the less harmful for the environment to the worst: hydroelectric power generation,

geothermal projects, natural gas fired stations, renewable energy projects.

According to its energy investment portfolio, the worst power development option for the

environment in Sudan is the construction of heavy fuel oil power stations. It would be the

baseline in most cases for Sudan. As this fuel is more harmful than diesel and natural gas,

the eligible projects to access to CDM funding would be, among the solutions this project

focus on: hydroelectric power generation, geothermal power projects, natural gas fired

stations and renewable energy projects.



11-1

11 OPERATIONALIZATION OF THE EA FRAMEWORK

This Chapter provides the information required to enforce and implement (operationalize) the

proposed EA framework for regional power projects. First, a mechanism tying the NBI

countries is proposed to operationalize the framework. Secondly, recommendations for

capacity building in environmental management are provided and finally, a preliminary

budget is presented to operationalize the EA framework.

11.1 Proposed enforcement mechanism

The process to enforce the EA framework for regional power projects is illustrated on

Figure 11.1.

Following its approval by the RPTP, it is proposed that the final version of the EA framework

be transmitted to the NBI Secretariat (NBI-SEC), which will have the task to prepare, with

technical assistance, a draft Protocol allowing the NBI countries to approve and adopt the

EA framework.

The Nile-SEC will submit for approval the draft Protocol to the NBI Technical Advisory

Committee (Nile-TAC). On the basis of the comments of the Nile-TAC, the Nile-SEC will

prepare the final Protocol enforcing the implementation of the EA framework in the NBI

countries. After final approval by the Nile-TAC, the Protocol shall be signed by the NBI

Council of Ministers (Nile-COM).

The Protocol allowing the NBI countries to approve and adopt the EA framework shall be

ratified by each NBI country, through regulations signed by the Minister in charge of

Environment. Following ratification, the resulting regulations and the Protocol shall be largely

publicised in each NBI country

.

Nile

Bas

in In

itiat

ive

– R

egio

nal P

ower

Tra

de P

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ct

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ironm

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egio

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Nile

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T

ecsu

lt In

tern

atio

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05-1

6005

– F

inal

Rep

ort –

Feb

ruar

y 20

08

11-2

Fig

ure

11.

1 E

nfo

rcem

ent

of

the

EA

fra

mew

ork

fo

r re

gio

nal

po

wer

pro

ject

s



11-3

The national environmental agencies shall be responsible to implement the resulting

regulations enforcing the implementation of the EA framework for regional power projects in

the NBI countries.

11.2 Capacity building in environmental management

In order to ensure the implementation of the EA framework and on the basis of a

comprehensive institutional analysis, it is essential that the concerned staff of the institutional

organisations involved in the process be trained and become familiar with the components of

the EA framework. The institutions involved are those identified in the above Chapter 7.

Three activities are proposed and detailed in the following sections:

• Four-day capacity building workshops on the EA framework;

• Technical assistance along the EIA review process;

• A two-day annual participative review of the projects studied during the period.

11.2.1 Workshops

The four-day workshops shall deal with the EA framework and its different components

(applicable policies and regulations, safeguard policies of the World Bank, evaluation of

regional power investment projects). These workshops shall be directed by two international

experts (one environmentalist and one sociologist), assisted by local consultants as needed.

Various training methods and tools shall be used, such as formal presentations, group

discussions, case studies, application exercises and field visit.

These workshops shall be offered at the regional (Regional EA Working Group) and national

levels (nine NBI countries). Around twenty participants, separated in three groups shall be

trained.

The proposed topics of the workshops shall be as follows:

• Existing Power Master Plans in the NBI countries.

• Short review of the existing environmental and social framework and procedures in the NBI countries:

Environmental topics - NBI environmental policy - EIA procedures and regulations




11-4

- Water resources management policy - Greenhouse gas emissions policies and regulations - International environmental treaties and conventions

Social topics - Land issues and resettlement policy - Poverty reduction and socio-economic development - Public health policy - Vulnerable groups including women policy - Historical and cultural sites policy and regulation - Indigenous community policy - Institutional framework in the NBI countries

• Issues related to environmental assessment considered by four funding agencies:

World Bank, African Development Bank, Canadian International Development Agency and European Union. The issues to be discussed include the environmental policies and environmental and social assessment procedures, natural resources management policy, resettlement policy, poverty reduction, public health, vulnerable groups, historical and cultural sites policy, indigenous communities policy, public participation and consultation, dams policy and international waterways policy.

• Guiding principles to achieve sustainable development through regional power projects: achievement of the Millennium development goals and important issues, such as biodiversity, involuntary resettlement, changes to the environment and resource use in the area, indigenous communities, gender issues, public health issues, economic development, physical cultural resources and, participation and consultation of the stakeholders.

• Environmental assessment process for regional power projects. The steps to follow at each phase of the project cycle shall be explained in details: 1) pre screening; 2) screening; 3) scoping: 4) impact assessment; 5) review; 6) decision-making; 7) ESMP implementation and; 8) auditing.

• Environmental and social impact assessment guidelines. Case studies shall be presented and discussed for the four types of projects considered in this EA framework (hydropower, thermal power, geothermal power and transmission lines). Specific environmental and social issues shall be identified, potential impacts specified and mitigation measures provided. Different topics could be studied in more details such as: Public consultation in the environmental assessment process; Involuntary resettlement; Indigenous peoples; Accident Risk Management.

• Integration of the Life Cycle Approach (LCA) in the EA process. The international standards shall be presented and life cycle assessment in the EA process for regional power projects in the NBI shall be discussed. Guidelines for conducting a life cycle assessment could also be studied.

• Various requirements to access to the benefits of the Clean Development Mechanism (CDM). After an overview of the CDM, requirements and issues related to CDM projects shall be presented. Frameworks and directives for developing and implementing a CDM for power projects shall also be detailed and examples given, such as baseline emissions calculations for power grids and net emissions reductions calculations.

• A one-day field visit could be programmed to a power plant and/or transmission station and lines site. Among others, participants could be invited to fill an



11-5

environmental and social impact grid and discuss the different issues raised by the operation of the infrastructures.

11.2.2 Technical assistance

Customized assistance could be offered to the Technical Review Committees during the first

EIA’s review processes, especially for projects showing significant transboundary adverse

impacts.

11.2.3 Annual participative review

A two-day participative review meeting could be hold annually regarding the environmental

reviews of power projects in the pipeline. This annual meeting would gather together

regional and national participants.

A month before the seminar, participants would have to present a short document describing

the different projects submitted to them through the year and the difficulties they

encountered dealing with them. The problematic situations would then be discussed during

the seminar conducted by two international experts (environmentalist and sociologist), who

would be assisted by local experts as needed. Solutions would be presented, studied and

discussed in order to ease the application of the environmental assessment framework and

its components in the following year.

11.3 Preliminary budget to operationalize the EA framework

Table 11.1 presents a preliminary budget in current US dollars required to operationalize the

EA framework for regional power projects during the 10 years following its acceptance by

NBI authorities. This budget plans for funds required to:

• develop and get approved the binding mechanism (Protocol) by the NBI countries;

• develop detailed environmental and social impact assessment (ESIA) guidelines for hydropower, thermal power and transmission lines projects;

• undertake an institutional analysis of the environmental agencies of the NBI countries (as described in Section 4.13 above);

• build the capacity in environmental management of stakeholders identified to implement the EA framework;

• coordinate the implementation of the EA framework (Regional EA Working Group);

• implement the EA framework at the national level (National Environmental Agencies);




11-6

• annual participative review to identify the problems encountered in the EA process implementation and propose corrective actions.

Considering the projects mentioned in the different power master plans and power trade

studies (see Chapter 3 above), this preliminary budget is based on the assumption that 30

regional power projects (3 per year), identified as such in accordance with this EA

framework, will be evaluated in the next 10 years in the NBI countries.

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11-7

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DU

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MODULE 4Appendices

AP

PE

ND

IX 1

APPENDIX 1 Bibliography



A1-1

BIBLIOGRAPHY Regional Documents

African group of experts, Response note to "The draft aide mémoire of the African group on the UN declaration on the rights of indigenous peoples, 21 march 2007, 16 pages, in www.ipacc.org.za/uploads/docs/AideMemoireResponse.pdf East African Community, Environmental assessment guidelines for shared ecosystems in East Africa, Arusha, June 2006, 30 pages + appendices. East African Community. The East African Power Master Plan Study. Final Phase II Report. EDF. Eastern Nile Power Trade Program Study. March 2007. Ethiopia-Sudan Power System Interconnection ESIA Project Environmental and Social Impact Assessment Final Report prepared by SMEC (Consultants), October 2006, 194 pages. Ethiopia-Sudan Power System Interconnection ESIA Project Resettlement Action Plan Draft Final Report prepared by SMEC (Consultants), July 2007, 117 pages. International Hydropower Association Sustainability Assessment Protocol July 2006, 68 pages. SNC Lavalin International, Strategic / Sectorial, social and environmental assessment of power development options in the Nile Equatorial Lakes Region, Final report, volume 1, main report, report for the Nile Basin Initiative, February 2007, 275 pages. SNC Lavalin International, Strategic / Sectorial, social and environmental assessment of power development options in the Nile Equatorial Lakes Region, Final report, volume 2, Appendices, report for the Nile Basin Initiative, February 2007,491 pages.

Burundi

Action Batwa, Missionnaires d'Afrique, Regard sur L'œuvre entreprise par Action Batwa: Présentation d'un Plan Durable en vue de venir en aide a cette population, document disponible http://www.africamission-mafr.org/batwa.htm 12 pages. Commission Économique pour L'Afrique, Centre de Développement Sous-Régional pour l'Afrique de l'Est (EA-SRDC) Étude sur la Perspective Genre dans la Reconstruction Post-Conflit au Burundi, Novembre 2006, 96 pages. Project d'appui au dévelopment communautaire et social (PRADECS), Burundi, Plan concernant les populations Batwa, RP483, Octobre 2006, 16 pages. Republic of Burundi, Poverty Reduction Strategy Paper - PRSP, September 2006, 138 pages. République du Burundi, Cabinet du President, Loi n° 1/010 du 30/06/2000 portant code de l'environnement de la République du Burundi, 2000, 55 pages. République du Burundi, Cabinet du President, Loi No. 1/02 du 25 mars 1985 portant Code forestier, 32 pages. République du Burundi, Loi n°1/6 du 25 mai 1983 portant protection du patrimoine Culturel National.




A1-2

République du Burundi, Ministère de l'Agriculture et de l'Élevage / Banque Mondiale, Cadre réglementaire de réinstallation, document élaboré dans le cadre due Projet de Réhabilitation et d'Appui au secteur Agricole du Burundi (PRASAB) par Dr. Gaspard Bikwemu, décembre 2003, 23 pages. République du Burundi, Ministère de l'Aménagement du Territoire et de l'Environnement, Convention Cadre des Nations Unies sur les Changements Climatiques Première Communication Nationale, Août 2001, 145 pages. UNESCO, Conventions ratifiées par pays, Burundi, 1 page, in www.portal.unesco.org/la/conventions_by_country World Bank, Project appraisal document to the Republic of Burundi for a multisectoral HIV/AIDS control and orphans project, Report No: 22918-BU, 28 March 2002, 98 pages. World Health Organization, Summary country profile for HIV/AIDS treatment scale-up, Burundi, December 2005, 3 pages, in www.who.int/hiv/HIVCP_BDI.pdf


République Démocratique du Congo, Document de la stratégie de croissance et de réduction de la pauvreté, juillet 2006, 120 pages.

République Démocratique du Congo Évaluation environnementale et sociale du PMURR (Programme multisectoriel d'urgence de réhabilitation et de reconstruction), volume 1 : Conditions Initiales de l’Environnement du Programme et Diagnostic Institutionnel préparé par SOFRECO, Paris, France, Septembre 2006, 87 pages. République Démocratique du Congo Évaluation environnementale et sociale du PMURR (Programme multisectoriel d'urgence de réhabilitation et de reconstruction) - Volume 3: Manuel d’Opération Procédures de l’évaluation des projets du Volet A préparé par SOFRECO, Paris, France, Septembre 2006, 180 pages République Démocratique du Congo, Ministère du plan, Unité de coordination des projets, Évaluation Environnementale et Sociale du PUAACV (Projet d’urgence d'appui à l'amélioration des conditions de vie) Volume 3 – Plan cadre de réinstallation, préparé par BUURSINK, USA et Nederland, Janvier 2006, 51 pages. Programme Multisectoriel d'Urgence de Réhabilitation et de Reconstruction (PMURR), Cadre de Gestion des Sites Culturels: Sites Paléontologiques, Sites Archéologiques, Sites Historiques et Sites Naturels Uniques juillet 2004, 19 pages. République Démocratique du Congo, Services de l'Office des Voiries et Drainage (OVD),Plan de réinstallation involontaire concernant les travaux de lutte antiérosive dans la region dite "Drève de Selembao" (Commune de Ngaliema,Ville-Province de Kinshasa), mai 2005, 98 pages.

Ethiopia

Eastern Nile Power Trade Program Study, Afdb, Energy Sector Profile & Projections, Vol-3 Ethopia, Draft Main Report, 15 January 2007 Eastern Nile Power Trade Program Study, AfDB, Market and Power Trade Assessment Environmental And Social Impact Assessment for the Ethopia-Sudan Transmission Interconnection Project Draft Final Report, September 2006. Ethiopia-Sudan Power System Interconnection ESIA Project Resettlement Action Plan Ethiopia Final Report prepared by SMEC (Consultants), October 2006, 128 pages.



A1-3

Federal Democratic Republic of Ethiopia (FDRE) Environmental Policy prepared by The Environmental Protection Authority and the Ministry of Economic Development and Cooperation, Addis Ababa, April 1997, 31 pages. Federal Democratic Republic of Ethiopia (FDRE) Environmental Protection Authority (EPA) National Capacity Needs Self-Assessment Action Plan A Synthesis Report, Document prepared by Addis Anteneh Consultant/Economist, Addis Ababa, April 2006, 63 pages. Federal Democratic Republic of Ethiopia (FDRE) Environmental Protection Authority Environmental Impact Assessment Procedural Guideline Series 1, Addis Ababa, November 2003, 32 pages. Federal Democratic Republic of Ethiopia (FDRE) Environmental Protection Authority Guidelines on Integrated Pollution Prevention and Control (IPPC) circa 1999, 16 pages in http://www.epa.gov.et/epa/departments/pollution_control/pollution_control.asp?dep_Id=3&sub_depId=13 Federal Democratic Republic of Ethiopia (FDRE) Ethiopia: Sustainable Development and Poverty Reduction Program-PRSP July 2002, 223 pages. Federal Democratic Republic of Ethiopia (FDRE) Proclamation No.300/2002 Environmental Pollution Control Proclamation, Addis Ababa, December 2002, 8 pages. Federal Democratic Republic of Ethiopia (FDRE),Federal Environmental Protection Authority Environmental And Social Impact Assessment Guidelines for Dams and Reservoirs, Addis Ababa, 2004, 21 pages. Federal Democratic Republic of Ethiopia (FDRE). Proclamation No. 29912002 Environmental Impact Assessment Prolamation. Federal Democratic Republic of Ethiopia, Environmental Protection Authority, State of Environment Report for Ethiopia April 2003, 191 pages. Government of Ethiopia, Ministry of Water Resources, Environmental and Social Management Framework, Ethiopia Irrigation & Drainage Project, Report, Document prepared by Environmental Resources Management Ltd, Washington, Report no E 1573, February 21, 2007, 74 pages. Swedish International Development Cooperation Agency (SIDA) Country Gender Profile Ethiopia prepared by Haregewoin Cherinet and Emebet Mulugeta/Consultants, Addis Ababa, May 2002, 50 pages.

Egypt

Arab Republic of Egypt Ministry of Water Resources and Irrigation Resettlement Policy Framework prepared by The West Delta Water Conservation and Irrigation Rehabilitation Project, RP525, January 2007, 43 pages. Arab Republic of Egypt Ministry of Water Resources and Irrigation Environmental and Social Impacts and a Framework Management Plan Executive Summary prepared by The West Delta Water Conservation and Irrigation Rehabilitation Project, E1572, February 2007, 30 pages. Arab Republic of Egypt, Egyptian Environmental Affairs Agency Environmental Impact Assessment Guidelines for Electricity Generating Facilities Based on Hydropower, December 2001, 22 pages.




A1-4

Arab Republic of Egypt, Egyptian Environmental Affairs Agency Environmental Impact Assessment Guidelines for Electricity Generating Facilities Based on Thermal Power, December 2001, 24 pages. Arab Republic of Egypt, Egyptian Ministry of Health and Population Monitoring and Evaluation Plan for Voluntary HIV Counselling and Testing Services at the Central Laboratory prepared in collaboration with Family Health Initiative (FHI) and United States Agency for International Development (USAID) 2004, 27 pages. Arab Republic of Egypt, Egyptian Ministry of Health and Population National HIV Clinical Care A Reference Guide for Physicians prepared in collaboration with Implementing AIDS Prevention and Care Project (IMPACT) and United States Agency for International Development (USAID) 2006, 114 pages. Arab Republic of Egypt, Ministry of Planning A Poverty Reduction Strategy for Egypt prepared by the World Bank Report No. 27954-EGT, September 2004, 78 pages. Arab Republic of Egypt, Prime Minister's Decree No. 338 of 1995 Issuing the Executive Regulations of the Environment Law promulgated by Law No. 4 of 1994, 88 pages available at http://www.eeaa.gov.eg/English/main/law4.asp Eastern Nile Power Trade Program Study, AfDB, Energy Sector Profile & Projections. Eastern Nile Power Trade Program Study, AfDB, Market And Power Trade Assessment. Eastern Nile Technical Regional Office (ENTRO) Eastern Nile Power Trade Program Study, Energy Sector Profile and Projection Vol 2- Egypt Final Main REport February 2007, 45 pages. Egypt is a Signatory, 1 page, http://www.eeaa.gov.eg/English/main/intlaw.asp Egypt Organization for Energy Planning (OEP) Energy Situation in Egypt, Efficiency Perspectives presented by OEP Chairman Dr. Ibrahim Abdel Gelil, Cairo, October 2002, 14 pages. Ministry of Communication and Information Technology National Center for Documentation of Cultural and Natural Heritage Strategic Approach to Egypt's Cultural Heritage Final Report-part VII prepared by CULTNAT, UNESCO and UNDP, July 2001, 228 pages available at http://www.cultnat.org/download/Pdf_strategic_approach.html Nile Basin Initiative (NBI) Multipurpose Development of The Eastern Nile Eastern Technical Regional Office (ENTRO) One System Inventory: Environment Theme Draft Report-Egypt prepared by Dr.Rifaat Abdel Wahaab, Cairo, January 2006, 96 pages. United Nations Development Program Initial Country Environmental Education and Awareness Reviews, prepared for the Nile Transboundary Environmental Action Project by H. Morsy, Egypt National Consultant, Cairo, December 2004, 168 pages.

Kenya

Center for Minority Rights and Development Mainstreaming Minorities and Indigenous People's Rights in Kenya's Human Rights Policy (…), April 2007, 1 page, available at http://www.cemiride.info/NewsDetails.asp?ID=30 Republic of Kenya The Environmental Management and Co-ordination Act (EMCA) 1999 No 8 of 1999, 38 pages. Republic of Kenya, 13 June, 2003: The Environmental (Impact Assessment and Audit) Regulations, 2003 – Special Issue, Kenya Gazette Supplement No. 31: Legal Notice No. 101



A1-5

Republic of Kenya, 2005: Sessional Paper No. 9 of 2005 on Forest Policy – Ministry of Environment and Natural Resources. Republic of Kenya, 30th December 2006: The HIV and AIDS Prevention and Control Act, 2006 - – Special Issue, Kenya Gazette Supplement No. 98 (Acts No. 14). Republic of Kenya, 6 January 2000: The Environmental Management and Coordination Act, 2000 – Kenya Gazette Supplement, Acts, 2000, Nairobi, 14th January, 2000. Republic of Kenya, April 29, 1999: Sessional Paper No. 1 of 1999 on National Water Resources Management and Development. Republic of Kenya, December 2006: The Energy Act, 2006 – Kenya Gazette Supplement, Acts, 2006, Nairobi, 2nd January, 2007. Republic of Kenya, Ministry for Planning and National Development Economic Recovery Strategy For Wealth and Employment Creation: 2003 - 2007, 61 pages available at http://www.planning.go.ke/ Republic of Kenya, Ministry for Planning and National Development Poverty Reduction Strategy Paper prepared by the International Monetary Fund, Country Report No. 05/11, 2005, 152 pages. URT, 11 February 2005: The Environmental Management Act, 2004 – Act Supplement No.3. URT, 2005: The Environmental (Registration of Environmental Experts) Regulations, 2005 – G.N. 348 OF 2005. URT, 2005: The Environmental Impact Assessment and Audit Regulations, 2005 – G.N. NO. 349 OF 2005 URT, 2006: Power Sector Reform Strategy (Draft) - Ministry of Energy and Minerals. URT, December, 1997: The National Environmental Policy – The Vice President’s Office, Division of Environment.

Rwanda

Agence Canadienne de Développement International, Rwanda Cadre de programmation 2005-2011, page web www.acdi-cida.gc.ca/CIDAWEB/acdicida.nsf/Fr/JUD-22212111-MYG Fond des Nations Unies pour la Population (FNUAP), Participation des femmes et égalité des sexes : la voie du redressement / Au Rwanda, le pouvoir par le scrutin, in État de la population mondiale 2005, 1 page, in www.unfpa.org/swp/2005/francais/ch8/chap8_page2.htm Government of Rwanda, Ministry of Finance and Economic Planning Economic Development and Poverty Reduction Strategy June 2007, 155 pages. Ministry of Local Government, Community Development and Social Affairs, Social Assistance, page web www.minaloc.gov.rw/social_affaires/protection_vulnerable.htm Présidence de la République du Rwanda, Commission Nationale de Lutte contre le Sida, Plan stratégique national multisectoriel de lutte contre le VIH/SIDA 2005-2009, version finale, décembre 2005, 96 pages.




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Présidence de la République du Rwanda, Commission Nationale de Lutte contre le Sida, Politique nationale de lutte contre le VIH/SIDA, décembre 2005, 20 pages. Preti Taneja, Rwanda's forgotten people, 1 page in www.uk.oneworld.net Republic of Rwanda, Ministries of Land, Environment, Forestry, Water and Mines Draft Water Law (Bill n..of..on fixing rules of use, conservation, protection, and management of water resources, August 2006, 51 pages. Republic of Rwanda, Ministries of lands, Environment, Forests, Water and Natural Resources Sectorial Policy on Water and Sanitation October 2004, 21 pages. Republic of Rwanda, Ministry of Finance and Economic Planning 2020 Vision Draft 3 English Version November 2002, 60 pages. Republic of Rwanda, Ministry of Lands, resettlement and environment, National strategy and action plan for the conservation of biodiversity in Rwanda, April 2003, 85 pages. Republic of Rwanda, No. 04/2005 of 08/04/2005 Organic Law determining the modalities of protection, conservation and promotion of the environment in Rwanda, 32 pages Republique du Rwanda Ministère a la Primature Charge de la Promotion de la Famille et du Genre Strategie de mise en œuvre de la politique nationale du genre ecrit par MCI Entreprise et finance par UNFPA, Avril 2007, 43 pages. République du Rwanda, Ministère des Infrastructures / Banque Mondiale, Plan succinct de recasement (PSR), document élaboré dans le cadre du Projet d'Infrastructures et de Gestion Urbaine (PIGU) par Wardat Monjoin, rapport définitif, octobre 2006, 75 pages. Rwanda Development Gateway, Gender concepts, 1 page, 9th-February 2005 in www.rwandagateway.org/article.php3?id_article=124 The Government of Rwanda, Poverty Reduction Strategy Paper, document prepared by the Ministry of Finance and Economic Planning for the National Poverty Reduction Programme, June 2002, 160 pages. UNESCO, Conventions ratifiées par pays, Rwanda, 1 page, in www.portal.unesco.org/la/conventions_by_country World Rainforest Movement, Rwanda: Indigenous Batwa Opening Channels of Cooperation with Conservation, article written by John Nelson, bulletin 70, 2003, 1 page, in www.wrm.org.uy/bulletin/70/Rwanda.html Zephyrin Kalimba, President de la Communaute des autochtones du Rwanda, Déclarations à l'Instance permanente sur les questions autochtones, 2006 à L'ONU. Evaluation de l'état des droits dans mon pays le Rwanda. May 2006, 5 pages disponible http://www.docip.org/Permanent%20Forum/pfii5_101.PDF.

Sudan

Eastern Nile Power Trade Program Study, AfDB Market And Power Trade Assessment. Eastern Nile Technical Regional Office (ENTRO) Data and Information on Environment and related issues in the Eastern Nile sub-basin in Sudan prepared by Dr. Balgis M.E. Osman Elasha, April 2006, 121 pages. Ethiopia-Sudan Power System Interconnection ESIA Project Resettlement Action Plan Sudan Final Report prepared by SMEC (Consultants), October 2006, 97 pages.



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Food and Agriculture Organization of the United Nations Forest Genetic Resources No. 30, 2002, 70 pages available at http://www.fao.org/docrep/005/y4341e/Y4341E13.htm#P2596_180691 Government of Sudan Sudan Stabilization and Reconstruction Country Economic Memorandum (In Two Volumes) Volume 1: Main Text Report No. 24620-SU prepared by the World Bank, June, 2003, 185 pages. World Food Programme Khartoum Food Aid Forum Background Paper Interim Poverty Reduction Strategy Paper 2004-2006 Draft , 34 pages. Paper available at http://nutrition.tufts.edu/pdf/research/famine/food_aid_forum_kit/papers/background_paper_3_interim_poverty_reduction_strategy_paper_2004-2006.pdf BUT not at http://info.worldbank.org/etools/library/view_p.asp?lprogram=&objectid=39371

Uganda

The Republic of Uganda, Ministry of Gender, Labour and Development Culture Policy, 4th draft July 2003, 26 pages.

The Republic of Uganda, Ministry of Finance, Planning and Economic Development Poverty Eradication Action Plan (2004/5-2007/8) prepared by the International Monetary Fund IMF Country Report No. 05/307, 2005, 288 pages. The Republic of Uganda, National Environment Management Authority A Review of the Application of Environmental Impact Assessment (EIA) in Uganda, prepared for the United Nations Economic Commission for Africa October 2004, 72 pages. The Constitution of the Republic of Uganda, 1995. National Environment Act (Policy) was in 1995. The Act established the National Environment Management Agency (NEMA) as the main administrative body for EIA in Uganda. Environmental Impact Assessment Regulations, 1998. (Practitioners) Regulations 2003 which provide for a uniform system of certification and registration of EIA practitioners. Dispute settlement mechanisms/procedures. The Act provides for the establishment of a Technical Committee on EIA to provide advisory services to NEMA on critical aspects of EIA implementation. Guidelines for EIA preparation. The Act provides for public participation and it is a central policy of the Uganda EIA process that opportunity is provided for public involvement.

Tanzania

Agricultural and Livestock Policy (1997). Assessment of the Value of Land for Compensation) Regulations, 2001. Community Development Policy, Ministry of Community Development, Women Affairs and Children, URT, Dar es Salaam, June 1997.




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Cultural Policy (Policy Statements) Ministry of Education and Culture, September, 1997. Environmental Impact Assessment (EIA) procedures (March 2002). Environmental Impact Assessment and Audit Regulation of 2005. Forest Act, 1957 (Revised in 2002). Land Act of 1999. Land Use Planning Commission Act 1984. National Policy on HIV/AIDS, Prime Minister’s Office, URT, Dodoma, November 2001. Protected Public Places and Recreation Areas Act. 1969. Social Impact on Large Dams: Equity and Distributional Issues, A Working Paper of the World Commission on Dams. The Land (Forms) Regulation 2001. The Land Acquisition Act 1967 and land ordinance. The Mining Act No 5 of 1998. The National Social Security Policy, URT, 2003. The Regional Administration Act No 9 of 1997. The United Republic of Tanzania, Ministry of Water and Livestock Development National Water Policy, 2002, 49 pages. The United Republic of Tanzania, Ministry of Water and Livestock Development National Water Policy, 2002, 49 pages. The United Republic of Tanzania, Vice President's Office National Strategy for Growth and Reduction of Poverty, 2005 109 pages. The United Republic of Tanzania, Vice President's Office National Strategy for Growth and Reduction of Poverty, 2005 109 pages. Town and Country Planning Act Cap 378. URT 2003: National Energy Policy 2003 - Ministry of Energy and Minerals. Village Land Act 1999. Water utilisation Act of 1974. Wildlife Conservation Act, No 12 of 1974. Women and Gender Development Policy, Ministry of Community Development. Women’s Affairs and Children, URT, Dar es Salaam, 2000.

Funding Agencies-World Bank

World Bank, The World Bank’s Global HIV/AIDS Program of Action, December 2005, 90 pages.



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World Bank, The World Bank Operational Manual, Operational Polices OP 4.00 March 2005, 12 pages. World Bank, Integrating Gender into the World Bank’s Work: A Strategy for Action, January 2002, 92 pages.

World Bank, The World Bank Policy on Disclosure of Information, June 2002, 38 pages.

World Bank Biodiversity in EA at the World Bank available at http://go.worldbank.org/MOWPMTKWA0.

World Bank The World Bank Operational Manual, Poverty Reduction, OP 1.00, 2 pages.

World Bank The World Bank Operational Manual, Water Resources Management, OP 4.07 , 2000, 2 pages.

World Bank The World Bank Operational Manual, Gender and Development, OP 4.20, 2003, 4 pages. World Bank The World Bank Operational Manual, Dam Safety OP 4.37, January 2001, 4 pages.

World Bank The World Bank Operational Manual, Forests OP 4.36 (5 pages) and Bank Procedures BP 4.36 (3 pages), August 2004.

World Bank The World Bank Operational Manual, Indigenous Peoples OP 4.10 (10 pages) and Bank Procedures BP 4.10 (6 pages), January 2007.

World Bank The World Bank Operational Manual, Involuntary Settlement OP 4.12 (11 pages) and Bank Procedures BP 4.12 (6 pages), March 2007.

World Bank The World Bank Operational Manual, Physical Cultural Resources OP 4.11 (4 pages) and Bank Procedures BP 4.11 4 pages), January 2007. World Bank The World Bank Group's Energy Program Poverty Reduction, Sustainability and Selectivity, 2002, 26 pages. World Bank The World Bank Operational Manual, Projects on International Waterways, OP 7.50, January 2005, 3 pages.

World Bank The World Bank Operational Manual, Projects in Disputed Areas, OP 7.60, January 2006, 1 page.

Funding Agencies-African Development Bank

African Development Bank Bank Group Policy on Poverty Reduction, February 2004, 53 pages.

African Development Bank Involuntary Resettlement Policy, November 2003, 42 pages.

African Development Bank Gender Plan of Action (GPOA)-2004-2007 for the African Development Bank Group, 32 pages.

African Development Bank African Development Bank Group's Policy on the Environment, February 2004, 42 pages.

African Development Bank The Gender Policy June 2001, 58 pages.




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Funding Agencies-CIDA

Canada International Development Agency (CIDA) CIDA's Policy on Poverty Reduction, (no date), 10 pages. CIDA Sustainable Development Strategy 2007-2009, 53 pages. CIDA CIDA’s Policy on Gender Equality, 1999, 34 pages. CIDA Environmental Assessment, available at http://www.acdi-cida.gc.ca/ea#1, 2 pages.

Funding Agencies-European Union

European Union Guidance on EIA-Screening, June 2001, 32 pages.

European Commission Programming Fiche-Indigenous Peoples, January 2006, 2 pages.

European Commission Programming Fiche-HIV/AIDS, January 2006, 5 pages.

European Commission Programming Fiche-Gender Equality, January 2006, 6 pages.

Commission of the European Communities Communication from the Commission Halting the Loss of Biodiversity by 2010-and beyond Sustaining ecosystem services for human well-being COM (2006) 216 final, May 2006, 15 pages.

Commission of the European Communities, Communication from the Commission to the council and the European parliament / External Action: Thematic programme for environment and sustainable management of natural resources including energy, Brussels, January, 25th 2006, 25 pages.

Communication from the Commission of 4 November 1999-Forests and Development: the EC approach, 38 pages.

Impact assessment and related documents

André, Pierre, Delisle, Claude E., Revéret, Jean-Pierre, Environmental Assessment for Sustainable Development, Processes, Actors and Practice, Presses Internationales Polytechnique, Montreal, 2004, 511 pages. Duchemin, Éric, Hydroelectricity and Greenhouses Gases, VertogO, Vol 2 N°1, April 2001, 8 pages. E7 Network of expertise for the global environment, Environmental impact assessment, an electricity utility overview, Montreal, June 1997, 47 pages. Forum of Energy ministers of Africa (FEMA), Energy and the Millennium. Development Goals in Africa, April 2006, 34 pages. Gagnon and Bélanger, Comparison of various electricity generation, with a life-cycle approach, Review of Energy, may 2003, 10 pages. Institue de l'énergie et de l'environnement de la francophonie, EIA , An electric Utility Overview, Network expertise E7 for the global environment, October 2000, 103 pages. International Finance Corporation, Environmental, Health, and Safety Guidelines Electric Power Transmission and Distribution, April 2007, 23 pages.



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International Finance Corporation, Environmental, Health, and Safety Guidelines Geothermal Power Generation, April 2007, 13 pages. International Finance Corporation, Environmental, Health, and Safety Guidelines Electric Power Transmission and Distribution, April 2007, 23 pages. International Hydropower Association, Sustainability Guidelines, February 2004, 24 pages. Loerincik, Y. and Prof. O. Jolliet, Life-cycle analysis and eco-design: Comparison of production of electricity, EPFL, March 2007, 5 pages. Olivier Jolliet, Myriam Saadé and Pierre Crettaz, Life-cycle analysis, understand and realize an eco-balance, 2005, 242 pages. Peuportier Bruno, European Project REGENER, Life-Cycle analysis of building, Mines school of Paris, june 1998, 28 pages. South African Power Pool, Guidelines for Environmental Impact Assessment (EIA) for Thermal Power Plants in the SAPP Region, December 2001, 274 pages. South African Power Pool, Environmental Impact Assessment Guidelines for Transmission Lines within the Southern African Power Pool Region, August 1999, 25 pages. SEIMENS, Environmental management of electrical devices, Power transmission and distribution, 2006.33 pages. UNDP, Achieving the Millennium Development Goals: The role of Energy services, UN, New York, 2005, 78 pages. UNDP, Gender and Energy for a sustainable development: a toolkit and resource guide, New York, 2004, 85 pages. World Bank, Involuntary Resettlement Sourcebook, 2004, 434 pages. World Bank, Environmental Assessment Sourcebook, chapter 3, Social and cultural issues in environmental review, 1999, 26 pages. World Bank, Environmental Assessment Sourcebook, chapter 10, Energy and industry, 1999, 99 pages. World Bank, Environmental Assessment source book Update, Public consultation in the EA process: A strategic approach, Number 26, May 1999, 14 pages. World Bank, Social Analysis Sourcebook: Incorporating social dimensions into Bank-supported projects, Washington, December 2003, 105 pages. World Bank, Thermal Power: Guidelines for New Plants. Pollution Prevention and Abatement Handbook, July 1998, 14 pages. World Commission on Dams (2000). Dams and Development: A New Framework for Decision-making. Earthscan, London.

World Conservation Union (IUCN) and the World Bank, July 1997. Large Dams: Learning from the Past, Looking at the Future. Workshop Proceedings. IUCN, Gland, Switzerland and Cambridge, UK and the World Bank Group, Washington, DC. v. + 145 pp. World Health Organization, Health impact assessment (HIA), Reasons to use HIA, in www.who.int/hia/about/why/en/index1.html




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Clean Development Mechanism UNFCCC, 2005, The United Nations Framework Convention on Climate Change. http://unfccc.int/essential_background/convention/background/items/1353.php UNFCCC, 2006 a, Kyoto Protocol: Status of Ratification http://unfccc.int/files/essential_background/kyoto_protocol/application/pdf/kpstats.pdf COP7, 2001, Marrakech Accords, http://www.climnet.org/COP7/cop7.htm UNFCCC, Information on the Executive Board, www.unfccc.int/cdm UNEP, 2003, CDM - Information and Guidebook, Second Edition, http://cd4cdm.org/Publications/cdm%20guideline%202nd%20edition.pdf Pembina Institute, 2003, A User’s Guide to the CDM (Clean Development Mechanism), Second Edition, http://pubs.pembina.org/reports/user_guide_2nd_ed.pdf The World Bank Finance Unit, Information on Prototype Carbon Fund http://carbonfinance.org/Router.cfm?Page=PCF&ItemID=9707&FID=9707 Figueres, C.,2002, Establishing National Authorities for the CDM - A Guide for Developing Countries, http://www.cckn.net/pdf/cdm_national_authorities.pdf Egyptian Environmental Affairs Agency (EEAA), 2001, The National Environmental Action Plan of Egypt 2002/17, draft version http://www.eeaa.gov.eg/English/reports/neap/Neap_Eng-last.pdf Planning Commission, Tanzania Strategy Profiles National Strategies for Sustainable Development, http://www.nssd.net/country/tanzania/tz05.htm Republic of Kenya, 2001, Kenya national guidelines on the clean development mechanism (CDM) http://www.nema.go.ke/downloads/Kenya%20National%20Guidelines%20on%20the%20CDM.pdf Paulo Manso, 2003, Establishing a National Authority (NA) for the Clean Development Mechanism (CDM): The Costa Rican Experience, OECD, http://www.oecd.org/dataoecd/11/32/2957712.pdf International Panel on Climate Change, 2006, Guidelines for National Greenhouse Gas Inventories, Volume 2 Energy http://www.ipcc-nggip.iges.or.jp/public/2006gl/vol2.htm International Panel on Climate Change, 1995, IPCC Second Assessment Report “Climate Change 1995, the science of Climate Change”. UNFCCC, 2006 b, CDM PDD template, last version available http://cdm.unfccc.int/Reference/PDDs_Forms/PDDs/index.html UNFCCC, Glossary of CDM terms http://cdm.unfccc.int/Reference/Guidclarif/glossary_of_CDM_terms.pdf République Française, 2004, Climate Change, Guide to the Kyoto Protocol Mechanism, Second Edition, Volume B, The Clean Development Mechanism, http://www.ffem.fr/jahia/webdav/site/ffem/users/administrateur/public/projets%20FFEM/b_en_cdm_guide_ld.pdf

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IX 2

APPENDIX 2

List of consulted stakeholders



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LIST OF CONSULTED STAKEHOLDERS Burundi • Mr. Pierre Barampanze, Director of Energy, Ministry of Energy and Mines, PTC

member. • Mr. Audace Sunzu, Director, REGIDESO, PTC member. • Mr. Stanislas Nsabimana, Head of the Department of Geography, University of

Burundi. Democratic Republic of Congo • Mr. Mawalala, Director of the Department of Water Resource, Ministry of Environment. • Mr. Cifarha Male, Rural Electrification Officer, Société Nationale d’Électricité (SNEL),

PTC member. • Mr. Badila, Ministry of Energy. Egypt • Eng. Hassan Mahmoud, General Manager of Technical Offices, Ministry of Electricity

and Energy, PTC member. • Eng. Hoda Wadia, Egyptian Electricity Holding Company, PTC member. • Eng. Maher Haziz, Managing Director for Environmental Sector, Egyptian Electricity

Holding Company. • Dr. Eng. Ithar Khalil, National Project Coordinator, Nile Transboundary Environmental

Action project, NBI. • Dr. Hisham El Agamawy, General Director of Energy Projects, Egyptian Environmental

Affairs Agency. • Eng. Mahmoud A. Shawky, General Director of Industrial Projects, Egyptian

Environmental Affairs Agency. Ethiopia • Dr. Fatma Moustafa, PCU manager, ENTRO, NBI. • Mr. Zelalem Gebrehiwot, Assistant Director Corporate Planning, Ethiopian Electric

Power Corporation, PTC member. • Mr. Teferra Beyene Asfaw, Advisor to the Minister, Ministry of Water Resources, PTC

member.




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• Mr. Michael Abebe, Head, Dams and Hydropower Design, Ministry of Water Resources, PTC member.

• Mr. Solomon Kebede, Head of EIA Service, Federal Environmental Protection Agency. • Mr. Mohammed Ali, Head of Environmental Pollution Control Department, Federal

Environmental Protection Agency. • Dr. Babiker Abdalla Ibrahim, PCU environmentalist, ENTRO, NBI. Kenya • Mr. John Githinji, Ministry of Energy, PTC member. • Mr. Albert Mugo, Power System Development Manager, Kenya Power Lighting Co.,

PTC member. • Mr. David Mwangi, Kenya Power Lighting Co., PSC member. • Mr. Boniface Kinyanjui, Kenya Power Lighting Co. • Mr. Martin Shimba, National Environmental Management Authority. • Ms. Minnie Ndindiri, Kenya Power Lighting Co. • Mr. F. Msuya, Lake Victoria Commission. Rwanda • Mr. Alexis Karani, Director of Planning of the Ministry of Infrastructures. • Mr. Félicien Ndabamenye, Power Generations Projects Officer, Ministry of

Infrastructures, PTC member. • Mr. Désiré Nzayanga, NELSAP, PTC member. Sudan • Mr. Henry Busulwa, Wetlands Lead Expert, Nile Transboundary Environmental Action

project, NBI. • Mr John Omwenga, Water and Sanitation Lead Expert, Nile Transboundary

Environmental Action project, NBI. • Dr. Ahmed Abdelsalam, National Project Coordinator, Nile Transboundary

Environmental Action project, NBI. • Ms. El Khitma El Awad, Ag. General Secretary Higher Council for Environment and

Natural Resources.



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• Mr. Amin Sabri Ahmed, Secretary General, Sudan Electricity Regulatory Authority. • Mr. Mario Peter Ugali, Director Planning and Information, Sudan Electricity Regulatory

Authority, PTC member. • Mr. Salah Eldin Ali Mohamed Nour, Director General, Advisory Commission for

Environment and Safety of the Ministry of Energy and Mining. • Eng. Osman Ahmed A. Kariem, Director General Directorate of Planning and Projects

of the Sudan Electricity Regulatory Authority. Tanzania • Mr. Lebby Chengulla, Senior Planning Engineer, TANESCO, PTC member. • Erick Buberwa (on behalf of Mr. Leonard Masanja – PTC member), Ministry of Energy

and Minerals. • Mr. Kabiruddin Rahim Abdullar, Director Corporate Planning and Research,

TANESCO. • Mr. Mansour, Environmentalist, TANESCO. Uganda • Dr. Henry Aryamanya Mugisha, Executive Director, National Environment Management

Authority (NEMA), Kampala. • Mr. Arnold Ayazika Waiswa, EIA Co-coordinator, National Environment Management

Authority (NEMA), Kampala. • Mr. Tom Waako, Program Officer, NBI Secretariat, Entebbe. • Mr. Fred Sajjabi, Senior Energy Officer, Ministry of Energy and Mineral Development. • Mr. Gerald Muganga, Engineering Services Manager, Uganda Electricity Transmission

Co. Ltd, Kampala. • Mr. Henry Bidasala Igaga, Assistant Commissioner Electrical Power, Ministry of Energy

and Mineral Development, Kampala.

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IX 3

APPENDIX 3

Public consultation in the environmental assessment process



A3-1

PUBLIC CONSULTATION IN THE ENVIRONMENTAL ASSESSMENT PROCESS

Procedures and methodology

Many documents provide detailed and useful information on the procedures and

methodologies for public consultation in the environmental assessment process. The

following documents may serve as references:

• André, Pierre, Delisle, Claude E., Revéret, Jean-Pierre, Environmental Assessment for Sustainable Development , Processes, Actors and Practice, Presses Internationales Polytechnique, Montreal, 2004, 511 pages. Chapter 8 is dedicated to public participation.

• World Bank, Environmental Assessment source book Update, Public consultation in the EA process: A strategic approach, Number 26, May 1999, 14 pages.

Based on the quoted references, this appendix provides summarized information on: 1) the

consultation objectives at each step of the EA process; 2) the designing and implementation

of a public consultation plan and; 3) the tools and techniques for public consultation.

1. Consultation objectives

In the environmental assessment process, consultation of the stakeholders is mandatory to

deliver a sustainable project and to protect the affected communities notably the vulnerable

groups.

Public consultation must be integrated throughout the life cycle project, from planning to

implementation, monitoring and evaluation. Consultation goals can be specified for each

stage of this continued process. They figure on the following table.




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Phases Objectives Before the project notice

Establish and maintain credibility Avoid the propagation of rumours and false information Demonstrate respect for local communities by informing them first Recognize the potential actors

Preliminary screening

Recognize the importance given by the public to the project and its environmental impacts

Scoping Identify the principal environmental issues Establish project alternatives Establish links with actors

Assessing impacts

Do as much as possible to favour acceptance of the project Collect and update information Lay the bases for consensus Involve the public in impact assessment and identification of mitigation measures Reconcile interests in the development of the environmental management plan, including monitoring and follow-up programs

Review Ensure a quality assessment Define present and future conflicting values Assess social acceptability Search for consensus Identify and find responses to unresolved questions Bring out mitigation measures and acceptable forms of compensations, including new ones

Decision Reach specific agreements to facilitate integration of the project Reaffirm one’s position Obtain second options of specific issues

Monitoring and follow-up

Inform the public of success in applying mitigation measures and in implementing the measures imposed with the decision Assure the public that the Project Proponent respects the environment Involve the public in monitoring and follow-up

Source: André, Pierre. , Delisle, Claude E., Revéret, Jean-Pierre, 2004, p.223.

2. Designing and implementation of a public consultation plan

Designing and implementation of a public consultation plan for a power project raises some

issues. They are exposed below.

Definition of specific goals: Though the broad goals of consultation at each stage of the

life cycle have been defined in the above table, specific goals must be assigned in relation

with the project examined. In addition, they may include building capacity of local institutions

and national NGOs.

Commitment to use the outputs of the consultations: consultation of the affected people

and different stakeholders is a time consuming process for these parties. Their involvement



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and participation level will depend on the commitment of the project proponent to use the

results of the consultation for the project design. Therefore, the proponent must be

convinced of the usefulness of consultations and he must give the process the needed

credibility. The commitment of the proponent may be particularly important for power

projects. Considering that these big projects are decided at a national or regional level, local

populations might have the feeling that major decisions and the project design have already

been finalized by the project proponents.

Identification of responsibilities: in the planning process of a project, the responsibilities

for undertaking the consultations and producing the outputs must be clearly defined at each

stage of the project. When national regulations require the implication of specific institutions

or agencies in the public consultations, these institutions must be identified and involved in

the whole process. In the case of transboundary projects such as transmission lines, more

than one agency may be involved in the public consultation plan. Therefore, coordination of

these agencies and definition of their own responsibilities must be clearly stated to avoid

overlapping.

Provision for adequate resources: Consulting the stakeholders of a project involves

specialized skills, financial resources and time. The cost of the consultation activities must

be fully evaluated and incorporated in the budget of the project planning and implementation.

Fees for consultation activities should take into account a whole set of factors. For instance,

rural area where affected people are dispersed such as in a transmission line project, tend to

make consultations more difficult and costly. Prior information of the population before

consultation sessions will also be more costly if affected people are illiterate. Illiteracy

prevents from the use of printed documents. Therefore, it entails information methods which

are more expensive than the distribution of a report. Inaccessibility of the area and poor

communications will add to the costs. Cultural factors in affected communities notably

restrictions on women involvement during public consultations, might involve holding distinct

sessions for men and women. These will also add to the costs. If the population’s past

experience with different projects proponent has been fairly negative or if affected

communities are likely to be worry, as it might be the case with a big dam project or a

thermal power project, the consultation strategy will need to include much more information

sessions and trust-building mechanisms. Such context will require the intervention of very

skilled professionals, necessitate additional activities and involve extra costs.




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The NBI power projects will require trans-boundary EIA and consultation process. A trans-

boundary public participation involves supplementary time, resources and costs since it

engages several responsible authorities, different sets of stakeholders, institutional and

cultural differences, language barriers, etc. In addition, the country of origin of impacts and

the country of impacts being different, the issues for which the consultation is needed will

vary from one country to another. Therefore, the strategy will require country-specific

methods and tools.

Planning the consultation process

The planning of the consultation process will consider the different issues highlighted above

and will conduct the following tasks:

• Identification of all stakeholders groups;

• Identification of the issues for which the consultation is needed;

• Identification of the historical and social environment and, the site-specific sensitivities and decision making process of the communities to be consulted;

• Selection of consultation techniques and tools;

• Definition of a communication strategy;

• Identification of the professionals required;

• Elaboration of a schedule;

• Preparation of a budget.

Throughout the EA process and reports, the consultation sessions should be well

documented. Reports shall include: a description of the methodology used, the name of the

attendees, a presentation of information gathered, topics of discussion and outcomes,

recommendations on how the project might address the issues raised during consultation

sessions including the mitigation measures suggested by the attendees, recommendations

for on going consultations during the monitoring of the project.

The budget for consultation exercises during the EA process varies according to the type,

the scope and the extent of the project. The World Bank estimates that this budget

represents approximately 0.0025% of total project costs (World Bank, Environmental

Assessment source book Update, Public consultation in the EA process: A strategic

approach, May 1999, p.11).



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3. Techniques and tools for consultation

Consultation of the populations during the EA process involves: 1) conveying information to

the population; 2) listening to the population’s opinions; 3) involving the population in

decision making.

Conveying information may be done thru different techniques and tools: printed material

(reports, brochures, etc.), displays and exhibits, newspapers, electronic media (television,

radio and video), advertising, formal information sessions, informal information sessions

such as field visits. All of them have advantages and disadvantages; they should be chosen

after analysis of the social context of the project.

Listening to the population’s opinions can be conducted thru surveys, focus groups,

interviews with community advocates, public seminars, and large public meetings. Most of

the time, a combination of these techniques is used. For instance, formal surveys using

questionnaires will give statistically representative results to access the views of the majority

on such issues as preferences for relocation sites in case of a resettlement entailed by the

construction of a power plant. Nonetheless, focus groups with women might be a proper

technique to take into account demand-side considerations while assessing a power project

impact.

Involving the population in decision making especially in high profile projects such as power

projects is a complex process. The principle techniques used are:

• Setting up tasks committees as advisory groups;

• Problem-solving techniques such as brainstorming with selected participants;

• Consensus-building techniques such as negotiations and mediation;

• For conflicting parties, arbitration based on employing an impartial mediator agreed upon by the parties.

Depending on the project, the stage of planning or implementation, the nature of

stakeholders, the level of the involvement of the population in the decision making and the

approach, these techniques and tools will be selected and adapted.

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IX 4

APPENDIX 4

Content of an environmental screening form



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CONTENT OF AN ENVIRONMENTAL SCREENING FORM 20

1. General information

a) Project proponent.

b) Name and address of the contact technical officer .

c) Name of the power project.

d) Location of the project.

2. Description and justification of the project

a) Description of the project:

Nature and location of the power project area; area that may be beneficially or

adversaly affected by the project; characteristics of the project design; activities to be

undertaken during the construction and operation of the project; materials needed for

construction and inputs required for operation; manpower.

b) Planning of the project:

Relevance of the project in the Nile Basin countries power plan.

Environmental planning activities of the project in order to minimise its environmental

and social impacts (ex. involuntary resettlement) and optimise the site location.

c) Justification of the project:

Current situation of the power sector, problems or needs to address and constraints

of implementing the project.

d) Attached documents (feasibility study, detailed design study, etc.)

3. Environmental and social issues of the project

a) Brief description of the environmental and social components in the project area:

ambient air, water, soils, vegetation, wildlife, population, socio-economic and sanitary

conditions, economic activities, land use, cultural aspects.

b) Discussion on the following issues and the project:

- Proximity to critical natural habitat (primary forest, wetland, etc.) or protected

area.

- Resettlement, expropriation of agricultural or forest lands, restricted access to

this land and to revenues from their exploitation.

- Presence of indigenous communities.

- Proximity to cultural heritage sites, such as cemetery, archaeological and/or

historical site, etc. 20 Form to be filled in by the Regional Environmental Assessment Working Group (REAWG)




A4-2

- Deforestation.

- Other anticipated important impacts: significant adverse transboundary impacts;

consumption of water and other natural resources; hazardous waste generated

by the project, impacts on vulnerable groups, economic and social benefits to the

local community, the nation and neighbouring countries.

c) Actions proposed to minimize the environmental and social impacts of the project.

4. Other relevant information

Indicate any other relevant information related to the project, such as public consultations

and other studies already conducted, etc.

5. Project environmental category and justification (SN)

a) Project category: A, B or no funding.

b) Justification.

6. World Bank safeguard policies triggered by the project

On the basis of the environmental and social issues of the project, indicate the safeguard

policies of the World Bank that will be triggered by the power project:

- OP 4.01: Environmental Assessment

- OP 4.04: Natural Habitats

- OP 4.10: Indigenous Peoples

- OP 4.11: Cultural Property

- OP 4.12: Involuntary Resettlement

- OP 4.37: Safety of Dams

- OP 7.50: International Waterways

7. Documents required to be prepared

According to the project environmental category and policies triggered by the project, identify

the documents required to be prepared for the project:

- Environmental impact assessment (EIA)

- Environmental and social management plan (ESMP)

- Environmental audit

- Risks assessment

- Resettlement action plan (RAP)

- Dam safety measures

- Other relevant document (indigenous community plan, cultural property plan etc.)

AP

PE

ND

IX 5

APPENDIX 5

Typical TOR for the EIA of category A power projects



A5-1

TYPICAL TOR FOR THE EIA OF CATEGORY A POWER PROJECTS

This appendix describes the typical contents of Terms of Reference for the environmental

impact assessment of a power project screened as Category A project according to this EA

framework.

a) Introduction

This first section of the TOR indicates the purpose of the TOR, identifies the project

proponent, the contact technical officer and the consultant mandated to prepare the TOR

and the EIA, briefly describes the type of power project (hydropower, thermal, geothermal

and/or transmission line) to be assessed and explains the arrangements made at this stage

to undertake the EIA.

b) Context

This section explains the institutional, geographical, environmental, social and economic

context in which the power project is to take place. Moreover, it provides sufficient

information on the objectives and components of the project, as well as on the study area, so

that any person interested in the project can understand the situation and constraints

surrounding the project and the EIA to be carried out. Also, it shall mention any source of

information (documents such as Country Environmental Profiles and Poverty Reduction

Strategy Papers) that could be useful for the completion of the EIA.

c) Requirements

This section indicates which policies and guidelines must be followed in carrying out the EIA.

Among others, those can include:

• Environmental and social policies of the project country of origin;

• Environmental and social policies of the country impacted in case of significant adverse transboundary impacts;

• Funding agency’s applicable environmental and social policies;

• Relevant international environmental/social agreements ratified by the project country of origin.




A5-2

d) Objectives and Scope of Work

This section defines the objectives of the EIA and summarises the scope of work to carry

out, by indicating the key tasks to undertake during the study. The scope and level of work

involve in the preparation of the EIA shall be proportional to the project's potential impacts.

For instance, an EIA for a project that would likely have major adverse impacts on social

components but limited impacts on the environment should focus mainly on the affected

social components.

Major tasks that shall be highlighted in this section because of their importance in the

preparation of an EIA include:

• Describing and justifying the proposed project by providing a synthetic description of the national power sector and project relevant components and presenting appropriate maps plans and figures.

• Identifying the policy, legal and administrative framework relevant to the project.

• Defining and justifying the project study area for the assessment of environmental and social impacts; in case of significant adverse transboundary impacts, include the concerned impacted territory in the project study area.

• Describing and analysing the physical, biological and human environment conditions in the study area before project implementation. This analysis shall include the relevant environmental and social components, especially those of important value for the society and local populations.

• Presenting and analysing other power alternatives to the proposed project, including the “without project” option, by identifying and comparing the alternatives on the basis of technical, economic, environmental and social criteria.

• For the selected alternative, identifying and assessing potential importance of beneficial and adverse environmental and social, direct and indirect, short and long-term, temporary and permanent impacts, on the basis of a rigorous scientific method.

• Defining appropriate measures to prevent, minimise, mitigate, or compensate for adverse impacts or to enhance the project environmental and social benefits, including responsibilities and associated costs.

• Addressing potential cumulative effects taking into account other initiatives planned in the study area.

• Defining appropriate environmental and social monitoring measures, including indicators, institutional responsibilities and associated costs.

• As appropriate, preparing an environmental emergency plan including an analysis of the risk of accident, the identification of appropriate safety measures and the development of a preliminary contingency plan.

• Preparing a resettlement plan, if necessary.

• Identifying institutional responsibilities and needs for capacity building if necessary to implement the recommendations of the environmental and social assessment.



A5-3

• Carrying out consultations with primary and secondary stakeholders in order to obtain their views on and preoccupations about the project.

• Preparing the EIA Report according to the generic contents presented in this EIA framework.

• Preparing an Environmental and Social Management Plan (ESMP) according to the generic contents presented in this EIA framework.

e) Schedule

To be defined by the project proponent and agreed by the NEA(s).

f) Team of Experts and Level of Effort

This section identifies the experts who will be involved in the EIA and indicates, if possible,

the level of effort estimated for each expert. The consultant’s team shall include competent

experts in the relevant environmental and social fields of expertise, such as water resources

and health specialists when water management and health constitute key issues of the

project.

g) Reporting

The EIA Report shall be presented in a clear and concise manner and focus on relevant and

significant environmental and social issues that assist in understanding the project and its

impacts. The scope and level of details of the Report shall be proportional to the project's

potential impacts.

The EIA Report shall describe the methodology to carry out the studies. In particular, the

models, methods and criteria used in the studies shall be presented and explained. The

Report shall also include maps and plans at the appropriate scale and list all consulted

documents.

AP

PE

ND

IX 6

APPENDIX 6

Involuntary resettlement



A6-1

INVOLUNTARY RESETTLEMENT

This appendix comprises 3 parts:

1) Overall objectives and guidelines to prepare a resettlement instrument

2) Terms of reference for a full Resettlement Action Plan

3) Terms of reference for an abbreviated resettlement plan




A6-2

PART I

OBJECTIVES AND GUIDELINES FOR A RESETTLEMENT PLAN

In undertaking the preparation of a resettlement instrument, the project proponents must

achieve the following overall objectives:

A. When possible, avoid resettlements. At least, minimize the resettlements by exploring alternative project designs.

B. When it is not possible to avoid resettlements, enhance or at least restore the livelihoods and living standards of displaced or affected persons.

C. Consult displaced or affected people and give them opportunities to participate in the planning and implementation of the resettlement plan.

To comply with these objectives, the resettlement instruments will respect the following

requirements:

1. The resettlement instruments will include measures to guarantee that the displaced or affected persons will:

a. be informed on their rights and consulted on resettlement alternatives; b. be compensated before their displacement at full replacement cost for losses

attributable to the project. The replacement cost shall not take into account the depreciation of the structures or assets and, it will covert all transaction costs;

c. receive assistance in addition to compensations to make sure that their livelihoods and living standards are improved or at least restored. Assistance will vary: land preparation, training, etc.

2. If the resettlement involves physical relocation of the affected people, the

resettlement instrument will include measures to: a. Assist the people during relocation; b. Provide housing or housing site, business premises or agricultural sites of

locational advantage or productive potential at least equivalent of those of the pre-displacement sites.

3. When physical relocation is required, develop a strategy based on land replacement

rather than cash compensation especially for the persons whose livelihoods are land-bases.

4. When physical relocation is required, compensate for the loss of access to

community services or land holdings (grazing, gardening and fishing areas, substances for energy, etc) and public infrastructures or services (schools, health centers, markets, places of worship, water facilities, etc.) in order to restore or improve the accessibility and quality of the services.

5. When physical relocation is required, preserve the pre-existing communities pattern

of social and cultural organization by involving the displaced and host communities in the relocation decisions.



A6-3

6. When necessary after displacement, assist during a transition period the affected people to make sure they will restore their livelihood and living standards.

7. When planning the resettlement instrument, ensure that displaced and host

communities are consulted and given opportunities to participate at each stage or the resettlement’s preparation, implementation and monitoring.

8. When developing a resettlement instrument, always pay a particular attention to the

specific needs of vulnerable groups among the affected persons. These groups must to be identified first. They can often be found amongst the poorest inhabitants, the landless peasants, women and children, displaced persons or refugees, households suffering from HIV/AIDS and, the indigenous peoples.

9. When the impacts of a project require the preparation of a full resettlement action

plan (RAP) or an abbreviated resettlement plan, carry out a census in the project area where land acquisition is intended. The census will identify the affected persons who will be eligible for compensation including those who have no recognizable legal right or claim to the land they are occupying.




A6-4

PART 2

TYPICAL TERMS OF REFERENCE FOR A FULL RESETTLEMENT ACTION PLAN

I. Background The Nile Basin Initiative (NBI), through the Regional Power Trade Project (RPTP), has

produced in 2008 a comprehensive standard framework for the integrated environmental

and social impact assessment of regional power projects applicable in all NBI countries.

Therefore, the impacts of regional power investment projects initiated in the Nile Basin

countries need to be assessed using this framework in order to meet the national and

international standards requirements in terms of environmental and socio-economic

considerations.

Following the environmental screening of the project under study, it has been established

that it will require land acquisition or restriction of access to resources. A Resettlement

Action Plan (RAP) is required since this project entails involuntary resettlement for 200 or

more severely affected persons.

II. Objective

The general objective of this consultancy is to elaborate a Resettlement Action Plan for the

project under study. The RAP shall comply with NBI’s EIA framework for regional power

investment projects. The RAP shall also be developed as part of the EIA of the project.

Accordingly, the consultant shall produce a document whose content will be harmonized with

the EIA of the project.

III. Scope of work

The consultant shall prepare a RAP document covering the following subjects and among

other things, perform the following tasks.

1. Description of the project and justification of the study The consultant will give a general description of the project and its context. He will describe

the project zone and provide a map or a plan of its location. He will present the size, position

and limits of the potential expropriation area. With the relevant ministry, he will set out the

cadastral situation of the area.



A6-5

2. Identification of the project potential impacts The consultant will identify the project components or activities that may result in the

displacement of population. The term “displaced population” refers to persons who will be

affected in any of the following ways:

• lost of their house or shelter; • lost of their productive assets; • lost of their income sources or means of livelihood.

For the impacts that can be located, the location of the impacts will be identified. When

possible, the location will be positioned on a map or a plan.

The alternatives considered (and steps taken if any) to avoid or minimize the displacement

of population will be presented and discussed.

3. Objectives of the resettlement action plan The consultant will present the NBI requirements regarding involuntary resettlement

instruments as figuring in its EIA framework for regional power investment projects.

According to these requirements and in the light of the project potential impacts, the

objectives of the resettlement action plan will be specified.

4. Socioeconomic studies The consultant will carry out socio-economic studies including a census in the early stages

of his assignment. To comply with the NBI requirements regarding resettlement plans, he will

consult the potentially affected communities during these studies.

The census shall provide details of:

• Spatial distribution of the occupants; • Nominative list of the current occupants of the affected area; • Standard characteristics of the listed households: size of the household, gender, age

and occupation of each member, gender of head of household, livelihoods (including if relevant and possible, production levels and income derived);

• Inventory of the affected houses or shelters (distinguishing owners and tenants); • Inventory of the affected assets (lands, fruit-trees, businesses, etc); • Identification of the different category of affected people according to their different

type of rights on the land they are occupying; • Inventory of community or public services, infrastructures and collective holdings

(grazing, gardening and fishing areas, schools, health centers, markets, places of




A6-6

worship, wells, graveyards, etc.): the ones situated in the area and the ones out of the area for which the access will be lost if the people are displaced.

The other studies shall provide baseline information on:

• Characteristics of the affected communities: demography, social and households organization, housing and living standards, production systems (agriculture, stockbreeding, fishing, handcraft, trading and business, forest, natural and common property resources used for livelihood and sustenance, etc.),health status, education, cultural characteristics, religion or beliefs, position, situation and activities of women, formal and informal institutions present in the area or involved in the communities (community organizations, NGOs, women associations, etc).

• Vulnerable groups in the affected communities: identification of the groups, estimation of the number of persons, assessment of their specific needs, valuation of the provision that shall be needed to meet those specific needs if the persons are displaced.

• Patterns of social interaction in the affected communities: social networks and social support systems, how they will be potentially affected, what measures need to be taken to maintain the existing interactions, etc.

• Land tenure and transfer systems including the customary systems and any issues raised by different tenure systems in the project area

5. Legal and institutional framework The consultant will describe and analyse the legal framework for the resettlement and

compensation of persons to be displaced:

• Laws (including customary law and traditional usage) governing law tenure, valuation of assets and losses, compensation and natural resources usage rights.

• Applicable national laws and administrative procedures in case of expropriation and displacement of population.

• Judicial process and the timeframe for the procedures. • Scope, nature and rates of compensations in case of expropriation. • Methodology of valuation of the lost assets, mode of payment, dispute resolution

mechanisms. • Agencies responsible for expropriation and implementing resettlement (including an

assessment of their institutional capacity to conduct those activities). • Gaps, if any, between national laws and NBI requirements, and the mechanisms to

bridge those gaps.

6. Eligibility criteria and cut-off date The consultant will give a definition of the displaced persons in the context of the project. He

will specify the criteria by which displaced persons will be deemed eligible for compensation

or any other assistance. He will state the cut-off date after which persons who encroach the

area won’t be entitled to any form of compensation or assistance.



A6-7

7. Valuation of and compensation for losses The consultant will plan out the methodology for evaluation all the losses and determine their

replacement cost. He will describe the compensations and other resettlement measures that

will assist each category of eligible persons. The measures will be compatible with the

cultural preferences of the affected persons which will have been identified by consulting

them. The consultant will describe the types and levels of compensation for each type of

losses.

He will prepare a resettlement entitlement matrix which will give a clear view of each

different categories of:

• Project impacts; • Affected populations/entities; • Compensation measures; • Complementary measures.

Complementary measures include those aimed to the vulnerable groups. Where a project is

likely to have adverse impacts on households or individual belonging to vulnerable groups,

the RAP should specify measures additional to the compensation measures.

An other matrix will give detailed information on the rates of compensation for each type of

losses.

The matrixes will be used by the team in charge of the implementation of the resettlement

plan. They should be user friendly in order to give clear and full answers to the following

questions: Which type of compensation for a given loss? What rate for that specific

compensation?

Based on the results of the socioeconomic studies particularly those of the census, the

consultant will proceed to the evaluation of all the expected losses - either total or partial,

permanent or temporary- and of their replacement cost.

8. Consultation and community participation During RAP preparation, the consultant shall hold consultations with potentially affected

populations, local authorities (including traditional authorities) and when possible, with host

communities. The consultation will examine among other things:




A6-8

• Conditions under which the resettlement will be socially acceptable; • Measures required to guarantee that the affected people will enhance or at least

restore their livelihoods and living standards; • Preferences regarding forms of compensation and resettlement assistance; • Measures need to be taken to maintain the existing social networks and social

support systems; • Definition of criteria for the selection of relocation sites and when possible, choice of

specific sites; • Measures to mitigate impacts of resettlement on host communities and arrangements

for addressing conflicts that may occur between resettlers and host communities; • Institutional and organizational arrangements by which displaced people can

communicate their concerns to project authorities and participate throughout planning, implementation and monitoring of the RAP.

The view expressed and the results of the consultations shall be summarized and annexed

to the PAR. The view expressed shall be taken into account in the design of the RAP.

The consultant will also describe the strategy for consultation and community participation of

affected people and host communities throughout the preparation and implementation of the

resettlement activities.

9. Grievance procedures The consultant will propose grievance mechanisms and procedures that should be used for

third-party settlement of disputes that may arise from resettlement. These procedures should

be affordable and accessible for the affected people. They should also be based on existing

judicial recourses and traditional mechanisms for dispute settlement.

10. Organizational responsibilities The consultant will propose an organizational framework for implementing the RAP. The

proposition should be based on the existing institutional framework if any exist. The

proposition will integrate the institutional and organizational arrangements for community

participation. Any measure (including technical assistance) required to strengthen the

capacity of implementation agencies’ and community institutions should be identified.

Provisions for those measures should be valuated. Provisions for the transfer of

responsibilities to local authorities or displaced and host communities themselves should

also be taken into account when appropriate. These provisions should be included in the

cost estimates for implementation of the RAP.



A6-9

11. Implementation activities The consultant will describe the different steps and activities that shall be conducted to carry

out the RAP from preparation through implementation. Without restricting to compensation

process, it will notably detail this process explaining for instance the following measures:

• If necessary, updating of the census; • Disclosure and validation of the list of persons deemed eligible for compensation; • Disclosure of the valuation of individual and community losses and compensations; • Negotiation for each individual record with the affected person or household; • Negotiation for community compensations; • Reconstruction of assets and/or payment of cash compensation; • Physical displacement and resettlement; • Assistance to displaced persons notably to vulnerable groups.

12. Relocation site selection Based on the consultation of population and technical considerations such as locational

advantage or productive potential, the consultant will review the suitability of different

relocation sites. He will specify the site selection criteria. He will identify preliminary

relocation options. If applicable, he will provide socioeconomic datas regarding host

population. He will list the activities that shall be undertaken for the selection of relocation

sites during the early stages of implementation of the RAP.

13. Schedule and budget The consultant will propose a schedule covering all defined activities from preparation

through implementation. The schedule will indicate how the resettlement activities are linked

to the implementation of the project and tied to overall sub-project timetable.

He will prepare detailed cost estimates for preparation and implementation of the PAR

including monitoring activities and administrative overheads. The budget will include a

detailed estimation of aggregate costs for each type of asset losses and compensation. If

for instance the area covers many villages, the costs will be broken up by village.

14. Monitoring and evaluation The consultant will describe the mechanisms and arrangements for monitoring and

evaluating of the resettlement activities. Among other things for the monitoring, he will

define:




A6-10

• Method of monitoring and responsibilities; • Performance monitoring indicators to measure outputs and outcomes of activities; • For each indicator, data to be collected, instrument, periodicity and responsible unit.

He will also give indications on the method and indicators for an evaluation of the impact of

resettlement after all resettlement and related development activities have been achieved.

IV. Delivrables

Unless otherwise specified, the documents shall be written in English and shall include:

1. At the early stage of the assignment, a paper on the methodology for socioeconomic studies notably for the census: the questionnaire, the census tactic plan to cover the area, the public information strategy, the team, etc. These instruments shall be discussed and approved before the beginning of the census.

2. A preliminary RAP document complying with NBI’s EIA framework for regional power investment projects. Among others, the document shall contain all the points covered by the above scope of work and the following appendices: • Detailed results of the census including the methodology, the nominative list of

the current occupants of the affected area and their individual losses (per household or when relevant, per person).

• Report on the consultation summarizing the expressed views and including a nominative list of participants.

3. After production of a preliminary RAP, the consultant will hold consultation sessions with affected people to present the content of the RAP and its guiding principles. He will get their feedback and take into account the expressed concerns in the final RAP. A report of these consultation sessions will be annexed to the final document.

4. A final RAP document integrating comments of the NBI on the preliminary document and concerns of the population as expressed during consultation.

V. Reporting requirements

To be defined by the project manager.

VI. Expertise

The consultant shall have solid background and knowledge of international standards

requirements for environmental impact assessments. In particular, the consultant shall:

• Demonstrate practical experience exceeding 10 (ten) years in conducting social assessments in developing countries, preferably in African and in the Nile Basin countries.



A6-11

• Have solid experience in developing resettlement plans complying with the World Bank 4.12 safeguard policy concerning involuntary resettlement preferably in Africa and in the Nile Basin countries.

• Have solid experience in conducting socioeconomic studies in general and census in particular preferably in Africa and in the Nile Basin countries.

• Demonstrate experience in carrying out EIA for power projects. • Demonstrate experience in dealing with environmental protection, gender, vulnerable

groups and poverty reduction issues in development projects.

VII. Timing


VIII. Supervision


IX. Facilities provided by the client





A6-12

PART 3

TYPICAL TERMS OF REFERENCE FOR AN ABBREVIATED RESETTLEMENT PLAN







considerations.

Following the environmental screening of the project, it has been established that the project

will require land acquisition or restriction of access to resources. The scoping of the project

has highlighted that there is no need for a full Resettlement Action Plan (RAP) since this

project does not entail involuntary resettlement for 200 or more severely affected persons.

An abbreviated resettlement plan (ARP) will be sufficient.

II. Objective

The general objective of this consultancy is to elaborate an abbreviated resettlement plan for

the project under study. The plan shall comply with NBI’s EIA framework for regional power

investment projects. The plan shall also be developed as part of the EIA of the project.

Accordingly, the consultant shall produce a document whose content will be harmonized with

the EIA of the project.

III. Scope of work

The consultant shall prepare an abbreviated resettlement plan document covering the

following subjects and among other things, perform the following tasks.

1. Description of the project and justification of the study

The consultant will give a general description of the project and its context. He will describe




A6-13

and limits of the potential expropriation area. With the relevant ministry, he will set out the

cadastral situation of the area.

2. Identification of the project potential impacts

The consultant will identify the project components or activities that may result in the

displacement of population. The term “displaced population” refers to persons who will be

affected in any of the following ways:

• lost of their house or shelter; • lost of their productive assets; • lost of their income sources or means of livelihood.



The alternatives considered (and steps taken if any) to avoid or minimize the displacement

of population will be presented and discussed.

3. Objectives of the abbreviated resettlement plan

The consultant will present the NBI requirements regarding involuntary resettlement

instruments as figuring in its EIA framework for regional power investment projects.

According to these requirements and in the light of the project potential impacts, the

objectives of the abbreviated resettlement plan will be specified.

4. Census

The consultant will carry out a census in the early stages of his assignment. To comply with

the NBI requirements regarding resettlement plans, he will consult the potentially affected

communities during the census.

The census shall provide details of:

• Spatial distribution of the occupants; • Nominative list of the current occupants of the affected area; • Standard characteristics of the listed households: size of the household, gender, age

and occupation of each member, gender of head of household, livelihoods (including if relevant and possible, production levels and income derived);




A6-14

• Inventory of the affected houses or shelters (distinguishing owners and tenants); • Inventory of the affected assets (lands, fruit-trees, businesses, etc); • Identification of the different category of affected people according to their different

type of rights on the land they are occupying; • Inventory of community or public services, infrastructures and collective holdings

(grazing, gardening and fishing areas, schools, health centers, markets, places of worship, wells, graveyards, etc.): the ones situated in the area and the ones out of the area for which the access will be lost if the people are displaced.

5. Valuation of and compensation for losses

The consultant will plan out the methodology for evaluation all the losses and determine their

replacement cost. He will describe the compensations and other resettlement measures that

will assist each category of eligible persons. The measures will be compatible with the

cultural preferences of the affected persons which will have been identified by consulting

them. The consultant will describe the types and levels of compensation for each type of

losses.

He will prepare a resettlement entitlement matrix which will give a clear view of each

different categories of:

• Project impacts; • Affected populations/entities; • Compensation measures; • Complementary measures.

Complementary measures include those aimed to the vulnerable groups. Where a project is

likely to have adverse impacts on households or individual belonging to vulnerable groups,

the abbreviated resettlement plan should specify measures additional to the compensation

measures.

An other matrix will give detailed information on the rates of compensation for each type of

losses.

The matrixes will be used by the team in charge of the implementation of the resettlement

plan. They should be user friendly in order to give clear and full answers to the following

questions: Which type of compensation for a given loss? What rate for that specific

compensation?



A6-15

Based on the results of the census, the consultant will proceed to the evaluation of all the

expected losses - either total or partial, permanent or temporary- and of their replacement

cost.

6. Consultation and community participation

During ARP preparation, the consultant shall hold consultations with potentially affected

populations. The consultation will examine among other things:

• Acceptable alternatives; • Conditions under which the resettlement will be socially adequate; • Measures required to guarantee that the affected people will enhance or at least

restore their livelihoods and living standards; • Preferences regarding forms of compensation and resettlement assistance; • Measures to mitigate impacts of resettlement and arrangements for addressing

conflicts that may occur between resettlers and host communities; • Institutional and organizational arrangements by which displaced people can

communicate their concerns to project authorities and participate throughout planning, implementation and monitoring of the ARP.

The view expressed and the results of the consultations shall be summarized and annexed

to the resettlement plan. The view expressed shall be taken into account in the design of the

plan.


affected people throughout the preparation and implementation of the resettlement activities.

7. Institutional responsibilities for implementation of the plan and grievance procedures

The consultant will describe the legal and institutional framework for the resettlement and

compensation of persons to be displaced:

• Laws (including customary law and traditional usage) governing law tenure, valuation of assets and losses, compensation and natural resources usage rights;

• Applicable national laws and administrative procedures in case of expropriation and displacement of population;

• Judicial process and the timeframe for the procedures; • Range of the power of the national eminent domain; • Scope, nature and rates of compensations in case of expropriation; • Methodology of valuation of the lost assets, mode of payment, dispute resolution

mechanisms; • Agencies responsible for expropriation and implementing resettlement (including an

assessment of their institutional capacity to conduct those activities);




A6-16

• Gaps, if any, between national laws and NBI requirements, and the mechanisms to bridge those gaps.

The consultant will propose an organizational framework for implementing the abbreviated

resettlement plan. The proposition should be based on the existing institutional framework if

any exist. The proposition will integrate the institutional and organizational arrangements for

community participation.

The consultant will propose grievance mechanisms and procedures that should be used for

third-party settlement of disputes that may arise from resettlement. These procedures should

be affordable and accessible for the affected people. They should also be based on existing

judicial recourses and traditional mechanisms for dispute settlement.

8. Implementation and monitoring activities

The consultant will describe the different steps and activities that shall be conducted to carry

out the abbreviated resettlement plan from preparation through implementation. Without

restricting to compensation process, it will notably detail this process explaining for instance

the following measures:

• If necessary, updating of the census; • Disclosure and validation of the list of persons deemed eligible for compensation; • Disclosure of the valuation of individual and community losses and compensations; • Negotiation for each individual record with the affected person or household; • Negotiation for community compensations; • Reconstruction of assets and/or payment of cash compensation; • Physical displacement and resettlement; • Assistance to displaced persons notably to vulnerable groups.

The consultant will describe the mechanisms and arrangements for monitoring the

resettlement activities. Among other things, he will define:

• Method of monitoring and responsibilities; • Performance monitoring indicators to measure outputs and outcomes of activities; • For each indicator, data to be collected, instrument, periodicity and responsible unit.



A6-17

9. Schedule and budget

The consultant will propose a schedule covering all defined activities from preparation

through implementation. The schedule will indicate how the resettlement activities are linked

to the implementation of the project and tied to overall sub-project timetable.

He will prepare detailed cost estimates for preparation and implementation of the

abbreviated resettlement plan including monitoring activities and administrative overheads.

The budget will include a detailed estimation of aggregate costs for each type of asset

losses and compensation.

IV. Delivrables


1. At the early stage of the assignment, a paper on the methodology for the census: the questionnaire, the census tactic plan to cover the area, the public information strategy, etc. These instruments shall be discussed and approved before the beginning of the census.

2. A preliminary abbreviated resettlement plan complying with NBI’s EIA framework for regional power investment projects. Among others, the document shall contain all the points covered by the above scope of work and the following appendices: • Detailed results of the census including the methodology, the nominative list of

the current occupants of the affected area and their individual losses (per household or when relevant, per person).

• Report on the consultation summarizing the expressed views and including a nominative list of participants.

3. After production of a preliminary resettlement plan, the consultant will hold a consultation session with affected people to present the content of the plan and its guiding principles. He will get their feedback and take into account the expressed concerns in the final plan. A report of this consultation session will be annexed to the final document.

4. A final abbreviated resettlement paln document integrating comments of the NBI on the preliminary document and concerns of the population as expressed during consultation.






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VI. Expertise


requirements for environmental impact assessments. In particular, the consultant shall:

• Demonstrate practical experience exceeding 5 (five) years in conducting social assessments in developing countries, preferably in African and in the Nile Basin countries.

• Have solid experience in developing resettlement plans complying with the World Bank 4.12 safeguard policy concerning involuntary resettlement preferably in Africa and in the Nile Basin countries.

• Have solid experience in conducting socioeconomic studies in particular preferably in Africa and in the Nile Basin countries.

• Demonstrate experience in carrying out EIA. • Demonstrate experience in dealing with environmental protection, gender, vulnerable

groups and poverty reduction issues in development projects.

VII. Timing


VIII. Supervision




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IX 7

APPENDIX 7

Indigenous peoples



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INDIGENOUS PEOPLES


1. The content of an indigenous peoples social assessment

2. Terms of reference for an Indigenous Peoples Plan (IPP)




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PART 1

CONTENT OF AN INDIGENOUS PEOPLES SOCIAL ASSESSMENT

If based on the screening, it as been established that indigenous peoples are present in the

project area or have collective attachment to it, it is mandatory to undertake a social

assessment to:

• Evaluate the project’s potential impacts on the indigenous communities; • Examine project’s alternative to avoid significant adverse affects on these

communities especially their physical relocation; • If alternatives can not totally avoid involuntary restrictions or resettlement, engage in

free, prior and informed consultation with indigenous communities.

The indigenous peoples social assessment will cover the following items:

• The description of the legal and institutional framework applicable to indigenous peoples in the country.

• A baseline social study of the characteristics of the affected indigenous peoples: limits of the lands traditionally used or occupied, demographics, internal social organization, gender and intergenerational relations, economic activities notably the natural resources on which the peoples’ economy is based, civic rights and position in the society, groups with which they have relations, housing, health, education, cultural features, religious beliefs, etc.

• An analysis of the vulnerability of the affected peoples for instance their traditional ties to the land, their dependence to the land and natural resources from which they live, the absence of legal or recognized rights on the land they use, etc.

• The identification of key stakeholders for consultation and the definition with them of a culturally appropriate consultation process throughout project preparation and implementation. The consultation framework will be gender and intergeneration inclusive. Stakeholders will include the affected communities, the indigenous organizations if any exist, and NGO or social society organizations suggested by the indigenous communities.

• A detailed identification of the potential negative and positive effects of the project on the affected indigenous peoples based on their free, prior and informed consultation.

• With the affected peoples, an identification of: i) the alternatives to avoid negative impacts; ii) the mitigation measures to minimize or compensate in a culturally appropriate manner for the unavoidable adverse impacts and; iii) an identification of the measures to ensure that they will benefit from the project.

Consultation and participation of the indigenous communities will be central in the process of

conducting the social assessment. The affected communities shall receive all relevant

information about the project and its potential impacts in a culturally appropriate manner.



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Culturally appropriate methods shall be used to ensure their participation and consultation.

The process, the view expressed and the results of the consultations will be documented. It

will figure as an appendix to the social assessment report.

The social assessment report shall be disclosed to the affected indigenous peoples in an

appropriate form, manner and language.

The social assessment must provide the project proponent all information to determine

whether or not the affected indigenous communities give a broad support to the project.

Such a support will be a condition to proceed with the project. If such a support is confirmed

and the project planning is carried on, the project proponent will need to elaborate an

Indigenous Peoples Plan (IPP). The IPP will specify the measures required to ensure that

indigenous peoples receive social and economic benefits from the project. The proposed

measures will be detailed and their cost will be budgeted for. The IPP will be integrated in

the project design.




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PART 2

TERMS OF REFERENCE FOR AN INDIGENOUS PEOPLES PLAN (IPP)







considerations.

Following the environmental scoping of the project under study, it has been established that

the project will require land acquisition or restriction of access to resources that will affect

indigenous peoples. Indigenous people live in the project area and/or have collective

attachment to geographically distinct habitats or ancestral territories and to the natural

resources in these habitats and territories in the project area.

A social assessment of the indigenous peoples’ communities, based on free, prior and

informed consultation with the affected communities has been conducted during project

preparation. It provided details on the potential adverse impacts of the project. Unfortunately,

avoidance of some of these impacts is not feasible. Provided that the indigenous

communities will receive their share of the benefits and that they will be compensated for the

adverse effects, they have given a broad community support to the project. Therefore, it has

been established the need for an Indigenous Peoples Plan (IPP) to ensure that indigenous

peoples receive social and economic benefits from the project.

II. Objective

The general objective of this consultancy is to elaborate an Indigenous Peoples Plan (IPP)

for the project under study. The IPP shall comply with NBI’s EIA framework for regional

power investment projects. The IPP shall also be developed as a part of the planning

process of the project notably as result of the social assessment and the consultation

already held with the indigenous peoples. Accordingly, the consultant shall produce a

document whose content will be integrated in the design of the project.



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III. Scope of work

The consultant shall prepare an IPP document covering the following subjects and among

other things, perform the following tasks.

1. Description of the project and justification of the study

The consultant will give a general description of the project and its context. He will describe


and limits of the area where indigenous people live in or have collective attachment.

2. Identification of the project potential impacts

Based on the results of the social assessment, the consultant will recall the project

components or activities that may result in adverse impacts on the indigenous peoples’

communities.



The alternatives considered (and steps taken if any) to avoid or minimize the adverse

impacts on the indigenous peoples will be presented.

3. Objectives of the Indigenous Peoples Plan (IPP)

The consultant will present the NBI requirements regarding indigenous peoples as figuring in

its EIA framework for regional power investment projects. According to these requirements

and in the light of the project potential impacts, the consultant will specify the objectives of

the IPP.

4. Scope of the IPP

Consultations have been conducted with the indigenous peoples during the social

assessment of the project. However, the consultant will conduct deepened consultations in

order to elaborate the IPP. Thru these consultations and researches he will conduct, the

consultant will set out the measures through which the project will make sure that:

• Indigenous affected peoples will receive culturally appropriate social and economic benefits from the project;




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• The identified adverse impacts on the indigenous peoples will be minimized and compensated.

The consultant will prepare the IPP in a flexible manner so adjustments can be made during

its implementation to ensure an iterative approach including the affected communities. In all

cases, the consultant will ensure that benefits and compensations to the indigenous

communities shall be given in culturally appropriate manners.

The IPP will be integrated into the project design documents. Therefore, the proposed

measures shall be detailed and their cost shall be budgeted for.

Elaborating the IPP, the consultant will pay special attention to two specific considerations: i)

lands and related natural resources; ii) commercial development of natural and cultural

resources.

i. Lands and related natural resources

The IPP will pay attention to: a) the patterns of long-time traditional land and resources

usage by the indigenous community including seasonal and cyclical usage rather than legal

rights on these sites; b) the need to protect such sites against prohibited intrusion especially

if traditional occupation or usage, or access to the natural resources of the sites, are

essential to the sustainability of the livelihood of the indigenous community; c) the cultural

and spiritual usage of the sites by the indigenous community since they may be important for

the sustainability of their culture; d) the traditional knowledge and practices of the indigenous

community for the management of the natural resources of the sites since their holistic view

of the environment supports long-term development sustainability.

In some cases, the project activities may involve the establishment of legal rights on lands

traditionally used by indigenous communities. In this case, the IPP shall include measures

for legal recognition of the indigenous communities’ long-term custody or usage rights on

these lands.

ii. Commercial development of natural and cultural resources

In some cases, the project may involve the commercial development of natural resources

located on lands traditionally owned, occupied or used by indigenous communities. In such

cases, the IPP must include measures to enable indigenous peoples to share fairly in the



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benefits to be made from the commercial development. At a minimum, they will receive

benefits equivalent to those to which they would be entitled if they had legal ownership titles

on the affected site.

In some other cases, the project may involve the commercial development of the indigenous

communities’ cultural resources and traditional knowledge. In such cases, the IPP must

reflect the free, prior and informed consultation of the concerned communities and their

agreement for such development. The IPP must include measures to ensure that the

concerned people receive an equitable share of the benefits derived from the commercial

development of their cultural resources and knowledge.

5. Consultation and participation of the indigenous communities

During IPP preparation, the consultant shall hold consultations with potentially affected

indigenous communities. He will use culturally appropriate consultation methods: use of

indigenous language during sessions, holding the sessions in an appropriate place and at an

appropriate moment to allow wide participation, allowing sufficient time for meetings and

discussions, etc.

After elaborating a draft report for the IPP, the consultant will present its content to the

indigenous communities in an appropriate form and manner. He will verify that the IPP, as

designed, receives a broad community support.

The view expressed and the results of the consultations will be summarized and annexed to

the IPP. The view expressed shall be taken into account in the design of the final IPP

document.


indigenous communities throughout the preparation and implementation of the IPP.

6. Elements to be included in the IPP

The consultant will elaborate an IPP document including the following items:

i. A summary of the social assessment conducted at a previous stage in the project planning.

ii. A summary of the results of the consultation sessions held during the social assessment.




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iii. A framework and guidelines to ensure appropriate consultation with the affected indigenous communities during the IPP implementation and more generally during the whole project implementation.

iv. An action plan of the identified measures which will ensure that indigenous affected peoples will receive culturally appropriate social and economic benefits from the project.

v. An action plan of the identified measures which will ensure that the identified adverse impacts on the indigenous peoples will be minimized and compensated.

vi. Appropriate grievance mechanisms and procedures that should be used for third-party settlement of indigenous peoples’ claims that may arise during project implementation. These procedures should be affordable and accessible for the indigenous people. They should also be based on existing judicial recourses and traditional mechanisms for dispute settlement.

vii. Organizational framework for implementing the IPP. The proposition should be based on the existing institutional framework if any exist. The proposition will integrate the institutional and organizational arrangements for indigenous communities’ participation. Any measure (including technical assistance) required strengthening the capacity of implementation agencies’ and community institutions should be identified. Provisions for those measures should be valuated and included in the cost estimates for implementation of the IPP.

viii. Mechanisms and arrangements for monitoring and evaluating of the IPP. Among other things for the monitoring, the consultant will define: • Method of monitoring and responsibilities. • Performance monitoring indicators to measure outputs and outcomes of

activities. • For each indicator, data to be collected, instrument, periodicity and

responsible unit. The consultant will also give indications on the method and indicators for an

evaluation of the impact of the IPP after all related activities have been

achieved and the project completed.

ix. Budget and time-frame for the implementation of the IPP. The consultant will propose a schedule covering all defined activities from preparation through implementation. The schedule will indicate how the IPP activities are linked to the implementation of the project and tied to overall sub-project timetable. He will prepare detailed cost estimates for preparation and implementation of the IPP including monitoring activities and administrative overheads.



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IV. Deliverables


1. At the early stage of the assignment, a paper on the methodology for consultation and participation of the indigenous peoples affected by the project.

2. A preliminary IPP document complying with NBI’s EIA framework for regional power investment projects. Among others, the document shall contain all the points covered by the above scope of work and the following appendix: • Report on the consultation summarizing the expressed views and including a

nominative list of participants. 3. After production of a preliminary IPP, the consultant will hold consultation sessions

with affected communities to present the content of the IPP and its guiding principles. He will get their feedback and take into account the expressed concerns in the final IPP. A report of these consultation sessions will be annexed to the final document.

4. A final IPP document integrating comments of the NBI on the preliminary document and concerns of the population as expressed during consultation.



VI. Expertise


requirements for environmental impact assessments and indigenous peoples issues. In

particular, the consultant shall:

• Demonstrate practical experience exceeding 10 (ten) years in conducting social assessments in developing countries, preferably in African and in the Nile Basin countries

• Have solid experience in conducting socioeconomic studies and consultation sessions preferably in Africa and in the Nile Basin countries.

• Have experience in developing indigenous peoples plan or planning frameworks complying with the World Bank 4.10 safeguard policy concerning indigenous peoples

• Demonstrate experience in carrying out EIA for power projects • Demonstrate experience in dealing with vulnerable groups, environmental protection,

gender, and poverty reduction issues in development projects

VII. Timing





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VIII. Supervision




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IX 8

APPENDIX 8

Accident Risk Management



A8-1

ACCIDENT RISK MANAGEMENT

Power projects such as hydropower and thermal power projects can cause accidents with

major consequences that can become transboundary. Therefore, the environmental

assessment of Category A projects shall include an accident risk analysis. In all cases, the

study shall describe the safety measures and a preliminary emergency plan for the

construction and operation phases.

Before filling the reservoir of a hydropower project, the proponent shall submit the detailed

operation, maintenance and security plans, indicating the repercussions on the river basin

and safety of the population, upstream and downstream of the dam. This plan shall include

all safety measures and describe how the dam operator will protect the population and the

environment in case of major accident or unusual situation (climatic or other). The proponent

shall comply with the dam policy of the funding agency, such as World Bank OP 4.37: Safety

on Dams.

1. Risks of major accidents

The risk analysis of major accidents is based on the identification of hazards (hazardness of

products, systems failure, sources of breaks, dams failure, etc.) from which accident

scenarios are established. The analysis of previous accidents from similar projects in the last

five to ten years provides additional information to establish the scenarios. All activities of the

project shall be considered.

If the proponent can prove that the project is not likely to cause major accidents, the

information gathered in the previous analysis can be used for the preparation of the

emergency plan. In order to prove the absence of potential major accident, the proponent

can use the concept of « worst-case scenario ».

If the proponent cannot prove the absence of potential major accident, the risk analysis shall

continue by considering in details the hazards and ensuing accident scenarios in order to

determine the related consequences and risks.

The analysis shall identify the elements of the natural and human environment that can be

significantly sensitive to and affected by an accident (dwellings, hospitals, natural sites of

interest, etc.). It shall also include the appraisal of the consequences related to the accident




A8-2

scenarios. The objective of this task is to identify the areas within which the safety of the

populations and the integrity of the biophysical and human environment can be affected, as

well as the presence of sensitive elements previously identified. This information is also

useful for emergency planning.

If there are sensitive elements in the areas that can be affected by an accident, the analysis

also includes an estimate of the frequency of occurrence in order to establish the risks of the

project. The risks can then be assessed according to their location from the project site.

Considering the characteristics of the dam and other structures of a hydroelectric complex,

the proponent shall estimate the consequences of the dam failure, in order to identify the

areas likely to be flooded and the populations and infrastructures that can be affected.

The study shall also include a brief analysis of external factors likely to cause major

technological accidents on the project site. All natural (flood, earthquake, etc.) and human

(neighbouring facility, train derailment, plane crash, etc.) events shall be considered. This

information is integrated in the emergency planning.

2. Safety measures

The study shall describe the onsite and offsite safety measures. The following elements shall

be described:

• Access restrictions to the site;

• Safety installations and prevention measures (systems of surveillance, emergency interruption, fire fighting, automatic extinguishers, emergency generators, leak detector, retention basin, safety distances, etc.);

• The mechanisms for detecting defective equipment;

• The storage of hazardous products.

3. Emergency plan

The study shall include a preliminary emergency plan enabling to adequately react in case of

accident. This plan identifies the main actions to face a situation of accident. It describes the

link with local authorities and alert mechanisms. If an emergency plan already exists in the

area of the project, this plan should be updated to integrate the proposed power project.



A8-3

In general, an emergency plan includes the following elements:

• The description of the accident scenarios as identified in the risks analysis: consequences, probability of occurrence, affected areas, etc.;

• The description of the various potential situations;

• The relevant information in case of emergency (responsible authorities, available equipment, plan of the site, safety equipment, etc.);

• The structure of intervention and the decision mechanisms of the organisation;

• The communication plan with the external civil security;

• The measures of intervention in case of spill, fire, explosion, etc.;

• The actions and sequence of interventions in case of emergency (emergency interruption, alert on the site, emergency call, evacuation, etc.);

• The measures of protection to protect the populations within the areas likely to be affected;

• The means to alert the populations that could be affected, in collaboration with local governmental authorities;

• The safety measures in force on the project site;

• The program to update and evaluate the emergency measures.

The proponent shall complete the comprehensive emergency plan before the project

implementation.

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IX 9

APPENDIX 9 Examples of Sustainable criteria and CDM

guidelines



A9-1

EXAMPLES OF SUSTAINABLE CRITERIA AND CDM GUIDELINES


1. Tanzania SD Strategy

2. Kenyan Government Guidelines on the CDM




A9-2

PART 1

TANZANIA SD STRATEGY

Source: Tanzania Strategy Profiles National Strategies for Sustainable Development, Planning Commission, http://www.nssd.net/country/tanzania/tz05.htm#1

Table of Contents 1. Introduction 2. Strategies with Economic Emphasis

Export Development Strategy and Action Plan National Debt Management Strategy (External Debt) Export Processing Zone (EPZ)

3. Strategies Dominated by Social Priorities Country Report on Implementation of the Beijing Platform for Action (Beijing + 5)

4. Strategies which Emphasize Environmental Issues The National Anti-Corruption Strategy and Action Plan for Tanzania The National Tourism Policy of Tanzania The National Energy Policy (2000) National Biodiversity Strategy and Action Plan Final Draft (1999) National Action Programme to Combat Desertification National Environment Action Plan (1994) The National Conservation Strategy for Sustainable Development (1995).. National Plan of Action to Combat Desertification The National Forest Policy

5. Strategies with Issues Cutting Across the three Pillars of Sustainable Development namely Economic, Social and Environment

National Population Policy The National Poverty Eradication Strategy Ministry of Agriculture and Cooperative Medium Term Strategic Plan (MMTSP) 2000-2005 Civil Service Department Medium Term Strategic Plan The Mineral Policy of Tanzania (1997) Institutional and Legal Framework for Environmental Management Project (ILFEMP) Tanzania Development Vision National Fisheries Sector Policy and Strategy Statement Tanzania Assistance Strategy (TAS) Poverty Reduction Strategy Paper

6. Conclusions and Recommendations… Conclusions Recommendations

[…]



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2. STRATEGIES WITH ECONOMIC EMPHASIS

2.1 Export Development Strategy and Action Plan

(A Dynamic strategy to Expand and Diversify Exports 2000 – 2004)

The Origin of the Idea

Taking into account Tanzania’s low export supply response, the Government of Tanzania

(URT) requested the World Bank to assist in preparing an Export Development Strategy and

Action Plan as part of Economic Reform measures which started in 1986. The agreement

was reached towards the end of 1994 and the exercise commenced in February 1995. The

exercise was completed in June 1996.

2.1.2 Major Objectives of the Strategy

The major objective of Export Development Strategy and its action plan is to "expand and

diversify Tanzania Exports".

2.1.3 Key Stakeholders involved in the Strategy

(a) Formulation

Planning Commission and Ministry of Finance, Ministry of Industries and Trade, Other 3 key

ministries (Agriculture, Natural Resources and Tourism and Prime Minister’s office), Bank of

Tanzania (BOT).

The Private sector including representatives of exports, public and private sector institutions,

donor community and multilateral financial institutions, academic & research institutions,

local business community (regional and district representatives), regional representatives,

and the media.

(b) Planning

Planning Commission, Ministry of Finance Bank of Tanzania, World Bank,

(c) Implementation, Management, Monitoring and Evaluation

(The strategy is not yet implemented)




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2.1.4 Methodology/Process used to Formulate the Strategy

(i) A Task Force consisting of 15 senior Government and Private sector representatives

worked with a joint World Bank/ED/Team to identify key export development constraints.

(ii) To deepen the Task Force understanding of the problems identified, specific studies were

undertaken by special consultants in particular sectors such as garments, leather, tourism

and customs. The main aim of engaging theses consultants was to dwell more deeply into

these subsectors in order to identify opportunities for accelerating the pace of exports from

these subsectors.

(iii) To understand how export problems have been solved in other countries, which are

currently major exporters, the Task Force visited Thailand, Malaysia, Singapore and

Mauritania.

(iv) Based upon the analysis undertaken in the foregoing phases, the task force then

produced the first draft of the "Export Development Strategy and Action Plan".

The Task Force members and World Bank sought comments on the first draft from within

and outside the Country through workshops and soliciting written comments. Within

Tanzania, comments were sought at the regional level and by representatives of the public

and private sector. Those comments were reviewed and reflected in the final document.

2.1.5 Current Status of Implementation of the Strategy

The strategy is at the early stage of implementation.

2.1.6 Major Problems during Strategy Formulation

A number of problems emerged during strategy formulation. These problems are presented

below:-

1. Political support; 2. Financial constraint; 3. Inadequate donor support especially bilateral competing donors; 4. Vested interests of the lead institutions in export and investment (Interested in Status

Quo situation – fear of change); 5. The strategy was not widely distributed (Voluminous and language used).



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Three things will have to take place if the strategy is to be effectively implemented:-

1. political support from the beginning; 2. support from both bilateral and multilateral international development partners; 3. Need for participation of the general public and other government and private sector

institutions in order to create awareness and ownership.

[…]

3. STRATEGIES DOMINATED BY SOCIAL PRIORITIES

3.1 Country Report on Implementation of the Beijing Platform for Action (Beijing + 5)

3.1.1 The Origin of the Idea

In 1946, the UN Commission on the Status of Women was established in order to facilitate

the process of enhancing women’s rights. The year 1975 was declared by the UN as the

International Women’s Year so as to focus public attention throughout the world, on the

plight of women. The critical issues of women were then deliberated upon during the Nairobi

Forward Looking Strategies, the Dakar and Beijing Conferences.

This report reviews the progress made in the implementation of the commitments

undertaken by the Government of Tanzania at the 4th World Conference on Women held in

Beijing in 1995.

Following the Beijing Conference, the Government of Tanzania formulated and adopted an

Action Plan known as the National Sub-Programme for Women’s and Gender Advancement

as part of the national strategy. This plan aims at implementing the Beijing Platform of Action

within the framework of the Community Development Policy.

3.1.2 Major Objectives of the Strategy

The "National Sub-Programme for Women’s and Gender Advancement" focuses on four out

of the twelve critical issues raised at the Beijing Conference. These four areas of concern,

which can be considered as broad development objects, are:

i. Enhancement of women’s legal capacity; ii. Economic empowerment of women and poverty eradication; iii. Enhancement of Women’s political empowerment and decision making.




A9-6

Improvement of women’s access to education, training and employment


Various international organizations are involved in the implementation of the strategy. These

include the United Nations Development Programme (UNDP), UNIFEM, World Bank, ILO,

FAO, UNFPA, UNICEF, WFP, DFID, USAID, NORAD, CIDA, WHO, UNIDO, SIDA, DANIDA,

GTZ, Royal Netherlands, Irish Aid, AIDOS (Italy), JOICIP, and FHI. National institutions and

NGOs which are implementing the strategy include: VETA, EOTF, TGNP, TAMWA,

KULEANA, TAWLA, FWETA and UMATI, WLAC, TAHEA, Women and Law in East Africa

(T), and Plan International. At the grassroot level, the main stakeholders are the women.

3.1.4 Methodology/Process used to Formulate the Strategy

With respect to the enhancement of women’s legal capacity, several methods or actions are

being pursued as follows:

i. The review of laws which oppress women, and the enactment of new laws which give fair treatment to women. This includes review of the inheritance law, the marriage Act and child custody laws;

ii. To carry out legal literacy programmes and mass campaigns as a way of educating the public, both women and men alike, regarding their human rights. This includes teaching various issues related to women in the school curriculum and adult education programmes. In some cases para-legal training is offered to females;

iii. Steps are being taken to establish a Commission on Human Rights in Tanzania which would include the promotion of the rights of women;

iv. Since the Beijing Conference, the Government of Tanzania has passed two laws, which protect the rights of women. One is the Sexual Offences Special Provisions Act of 1998, the other is a set of laws known as the Land Law Act and the Village Land Act of 1999.

Methodologies for the economic empowerment of women and poverty eradication include:

• The promotion of the establishment of women’s groups as a way of making credit facilities available.

• Training women in entrepreneurial skills, management capabilities, and marketing skills.

• Improving women’s access to technology and social services. • Assisting women in setting up savings and credit societies. • Establishment of the "Women’s Development Fund (WDF)" for giving loan support to

income-generating projects. • Establishment of the "Credit for Rural Enterprises for Women (CREW) (T)". • Numerous other credit facilities are operated by CBOs and local and international

NGOs.



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Methodologies for women’s political empowerment and decision making

(i) Increasing the number of women in parliament and local councils

Women have been mobilized to contest for various seats

i. Encouraging women to be involved in elections, both as voters and candidates, through media campaigns, public meetings, workshops and seminars.

ii. The government plans to ensure that at least 30% of those appointed in political and public services are women. Gender focal points were set up in all ministries and regional structures.

Methodologies for improving women’s access to education, training and employment

• Steps to increasing the enrolment of girls in schools by making the school environment more attractive to female students by, for example, increasing the number of female teachers, providing financial support to girls, improving reproductive health education in schools, providing more boarding facilities, and making curricula and textbooks more gender sensitive.

• Establishment of girls’ vocational training centers and technical secondary schools. • Sensitization of parents so that they encourage girls to further their education. • Launching of short courses relevant to women’s needs.

3.1.5 Current Status of Implementation of the Strategy

Generally, the achievements have been short of the goals set. Major constraints have been

financial limitations on the part of the government and non-fulfilment of the international

obligations (according to the Beijing Platform for Action), including the debt burden.

[…]

4. STRATEGIES WHICH EMPHASIZE ENVIRONMENTAL ISSUES

4.3 The National Energy Policy (2000)

4.3.1 The Origin of the Idea

The first National Energy Policy of Tanzania was put in place in April 1992. Since then, the

energy sector, as well as the overall economy, has gone through profound changes. In line

with the recommendations in the National Energy Policy of 1992, the policy has been revised

taking into account structural changes in the national economic and global political

transformations, which together have led to the restructuring and liberalization of all sectors

of the economy. Following these changes, the Government of Tanzania felt it was important




A9-8

for each sector to have or revise policies and strategies so that they suit the new

macroeconomic environment.

4.3.2 Major Policy Objectives of the Strategy

Overall Objective

The National Energy Policy overall objective is to ensure availability of reliable and

affordable energy supplies and their use in a rational and sustainable manner in order to

support national development goals.

Specific Objectives

The specific objectives of the policy include:-

i. To establish an efficient energy production, procurement, distribution and end-use system in an environmentally sound manner with due regard to international energy cooperation and gender issues.

ii. To enhance the harnessing of indigenous energy resources in order to diversify energy services and reduce the dependence on imported petroleum based products.


A list of stakeholders (institutions) who participated in one way or another during formulation

stage include the Ministry of Finance, Planning Commission, the Ministry of Natural

Resources and Tourism and Ministry of Water. Other institutions were the Ministry of Lands

and Human Settlements Development, Ministry of Transport and Communication, Ministry of

Trade and Commerce and the Swedish International Development Cooperation Agency

(SIDA).

4.3.4 Methodology /Process used to Formulate the Policy

During the process of revising the energy policy an interactive and participatory process

between the government, stakeholders and relevant groups was an important part of the

process in order to incorporate views of market actors and energy consumers to address the

complex nature of the sector.

The exercise involved a consultant AF International who also involved the local stakeholders

to form a task force. The task force came up with a draft Energy Policy. Among the local



A9-9

consultants and NGOs who were involved in the process are Kipondya & Company (a local

consulting firm) and CEEST (a local NGO).

Also important to mention is the fact that AF International was working very closely with the

ministry’s experts. The task force organised three stakeholders’ workshops where the draft

policy was discussed and improved accordingly. One workshop was organized for

parliamentarians. In addition, a study visit was carried out to South Africa, Uganda and

Sweden.

4.3.5 Current Status of Implementation of the Policy

Regarding the extent of implementation and achievement of the objectives of the strategy,

some progress has been made. More energy comes from local sources today than it used to

be before the revision of the policy. Approximately 80% of the domestic energy consumption

comes from indigenous sources, as exploration works for e.g. fuel have to a certain extent

been accomplished. There is coal production at Kiwira where the plan is to expand

production from 6 to 30 megawatts. A new hydropower station has just been officially

opened at Kihansi in Morogoro region.

4.3.6 Major Problems during Policy Formulation

The major problems which were pointed out by stakeholders as drawback implementing the

policy included the following:-

i. dependency on foreign assistance; ii. inadequate commitment of the key stakeholders; iii. financial constraint; iv. poor expertise and technological capacity.

What is more problematic is, that the solutions to the problems depend on foreign

assistance, and there is no clear indication in the document of some kind of political

commitment. Nevertheless, stakeholders made the following observations in respect of

political commitment: many key stakeholders were involved during the formulation stage.

They included members of parliament (MPs) and the ministers through the Inter-Ministerial

Technical Committee and the Cabinet. Further, MPs were involved during the stakeholders’

workshops, and for the minister’s during the approval of the policy.




A9-10

PART 2

KENYAN GOVERNMENT GUIDELINES ON THE CDM

In order to ensure that CDM projects are environmentally effective and lead to sustainable

development as well, they must be based on principles of equitable allocations and be

directed to projects focused on non-greenhouse gas emitting technologies, especially

renewable energy technologies. Consequently, for developing countries like Kenya to derive

maximum benefits from CDM projects, a number of issues must be taken into account,

including, but not limited to, the following:

Project Criteria �All CDM projects must satisfy the following requirements:

• demonstrate a firm and tangible contribution to sustainable development;

• be supportive of and consistent with national development priorities and be linked to poverty reduction;

• implement technologies that are locally appropriate, environmentally friendly, and energy efficient; have necessary precautions in place to avoid dumping of substandard technologies;

• contribute to the enhancement of national institutional and human capacity building;

• accord highest priority to activities that generate maximum economic, social, and environmental benefits;

• address community needs and priorities through effective public participation in project design, planning, and implementation to ensure equitable distribution of sustainable development benefits;

• contribute to global efforts to achieve stabilisation of greenhouse gas concentrations in the atmosphere in accordance with Article 2 of the Convention;

• ensure that CDM financial inflows are over and above the existing Official Development Assistance (ODA); and

• be consistent with the objectives of Agenda 21 and relevant environmental conventions, such as the Convention on Biological Diversity, the Ramsar Convention on Wetlands, and the Convention to Combat Desertification, as well as with local and national environmental management laws.

Share of Proceeds

The sharing of proceeds from CDM activities is a crucial issue of interest to Kenya, like any

other Party to the UNFCCC. However, the share of proceeds shall be based on a formula to

be agreed on by the international community under the auspices of the Conference of the



A9-11

Parties/Meeting of the Parties (COP/MOP). The proceeds to be shared will include the

emissions reduction or offset credits. CDM projects must include a nominal levy (adaptation

levy) of the savings accruing to the investing country Party, the percentage of which will be

determined by COP/MOP. Kenya will support such an agreement on the share of proceeds

provided that a significant portion of the shares remain behind.

Methodological Issues

The methodological issues that deal with operation of CDM projects at the national level

should take the following into consideration:

Baselines

Baselines need to be developed on a project-by-project basis during the initial phases of

CDM. Sectoral baseline arrangements should be avoided as they could result in “free-riding”

projects that claim emissions reductions that either would have happened anyway or that in

reality do not accrue. Moreover, any project proposed under CDM must result in lower

emissions than the current business-as-usual scenario. The prevailing business-as-usual

scenario will serve as the basis for determining the level of CERs accruing from project

implementation.

Project Validation

Every CDM project must be thoroughly assessed to determine whether the proposed action

conforms to the criteria identified above before it is validated by the CDM National Clearing

House (NCH).

Verification and Certification

Verification and certification will take place at two levels. At the national level, the National

Climate Change Focal Point (NCCFP) will appoint a panel of local experts to verify the CERs

accruing from all CDM projects while, at the international level, a body designated by the

COP/MOP will perform certification and verification of all CDM projects.




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Project Monitoring and Evaluation (M&E)

Once a CDM project implementation gets underway, a mechanism for regular M&E will be

developed. The purpose of M&E is to ensure that the project implementation conforms to the

set criteria throughout the project lifecycle.

Project Financing

The financing arrangement will be agreed upon by a host entity and the Annex I Party

investor. Once an agreement has been reached, the project proposal will be submitted to the

respective governments for approval and any other necessary action.

Land Use, Land Use Change, and Forestry (LULUCF)

There are still far too many scientific uncertainties associated with carbon sequestration by

forests and land use changes. These uncertainties are compounded by the lack of capacity

to quantify these changes in Kenya. CDM forestry projects are long term by nature and it

would be difficult to deny Kenyans the use of forest products and services reserved for CDM

when the Kenyans need them. Moreover, there is minimal or no technology transfer in the

afforestation programs as stated in the CDM.

While the demand for forestry products is growing nationally and internationally against the

background of a dwindling forestry resource base, there is no doubt about the need for

forestry projects in Kenya. Forestry projects should continue within other frameworks, such

as the UN Convention on Biodiversity and the UN Convention to Combat Desertification, as

well as through other bilateral or multilateral arrangements. Decisions on LULUCF projects

under CDM should be suspended until scientific uncertainties and other outstanding issues

are resolved at the COP/MOP level.

AP

PE

ND

IX 10

APPENDIX 10

Baseline emissions calculations for power grids and net emissions reductions

calculations



A10-1

BASELINE EMISSIONS CALCULATIONS FOR POWER GRIDS AND NET EMISSIONS REDUCTIONS CALCULATIONS

Greenhouses gazes and their properties

Greenhouse gases (GHGs) in the atmosphere create a “greenhouse effect” that keeps the

Earth’s surface much warmer than it would otherwise be by trapping outgoing infrared

radiation. The six primary GHGs of concern are carbon dioxide (CO2), methane (CH4),

nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulphur

hexafluoride (SF6).

The greenhouse effect is predicted to instigate a rise in average global temperatures of

1.4°C to 5.8°C over this century — hence the term “global warming.” However, this

temperature rise will be accompanied by weather extremes, which is why this phenomenon

is more accurately described as climate change.

High levels of emissions from human activities have caused concentrations of GHGs in the

atmosphere to increase markedly since the beginning of the industrial era, adding an extra

“human-induced greenhouse effect.” Since 1750, atmospheric concentrations of carbon

dioxide have increased by 31%, methane by 151%, and nitrous oxide by 17%.

Measures that can be taken to reduce GHG emissions include improving energy efficiency,

switching to less carbon-intensive fuels, increasing the use of renewable energy, and

adopting cogeneration technologies. Some sectors also have cost-effective opportunities to

reduce fugitive and industrial process emissions.

Table A provides an overview of the various GHGs and their properties. The standard for

reporting GHG emissions is in carbon dioxide equivalent (CO2e). To obtain this, each GHG

must be multiplied by its Global Warming Potential (GWP). For example, if a landfill releases

10 Mt of methane a year, the CO2 equivalent is 10 Mt x 21 (GWP) = 210 Mt. Therefore, the

landfill releases 210 Mt CO2e/year.




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Table A: Properties of Greenhouse Gases

Greenhouse Gas Chemical Symbol Global Warming Potential (GWP)

Carbon dioxide CO2 1 Methane CH4 21 Nitrous oxide N2O 310 Hydrofluorocarbons HFC-23 11,700 HFC-125 2,800 HFC-134a 1,300 HFC-152a 140 Perfluorocarbons CF4 (Tetrafluromethane) 6,500

C2F6

(Hexafluroethane) 9,200

Sulphur hexafluoride SF6 23,900

�

Emissions Coefficients for Electric Power Grids

Weighted Average Grid Emissions Coefficients

In a CDM project that displaces grid electricity through electricity efficiency or fuel

substitution, the project baseline emissions are those from the generation of electricity in the

national grid for each year of the CDM crediting period (7 or 10 years).

To estimate these baseline emissions, two things are required:

1. the typical daily load curve; and 2. the power plants dispatched to satisfy that typical load curve each hour of the day.

The baseline is, therefore, the weighted average CO2 emission per unit of electricity

(kWh) produced by the grid for the different years of the crediting period.

This can be computed using a simple dispatch rule from the following information:

• the daily load curve; • the type of power plant, i.e., baseload or peaking; • the efficiencies of the different power plants; • the fuel used in each power plant; • planned capacity expansion; and • assumed marginal power plants beyond the utility plan period.



A10-3

This approach must be used when the electricity displaced is from any grid that does not use

a single power source (e.g., a diesel mini-grid). It allows the use of published or commonly

used standard emissions coefficients for the local or regional power grid based on current

common characteristics of the grid. These include annual power production and efficiencies

for each power plant (hydro, coal, natural gas) in each year that CERs will be claimed.

These coefficients will be the same for all CDM projects operating in the region, unless the

project specifically addresses one aspect of the load curve — e.g., reducing peak demand.

Weighted average emissions coefficient (kg/kWh) = Sum product [electricity produced by each plant (kWh/yr) * emissions coefficient for that plant (kg/kWh)]

Total electricity generated

In areas where there is a rapid increase in the demand for electricity, emissions coefficients

for the so-called “built marginal” plants may be used. This is the weighted average of the five

most recently built power plants or the plants that meet the most recent 20% of demand.

Weighted average emissions coefficient for built marginal (kg/kWh) =

Sum product [electricity produced by each plant (kWh/yr) * emissions coefficient for that plant (kg/kWh)] Electricity generated by the five most recent plants or 20% of current demand

If the project addresses peak demand, then emissions coefficients for the plants that are

used to meet peak demand (e.g., gas turbine generators) may be used.

How to Allow for Transmission and Distribution (T&D) Losses

Transmission losses occur in the high voltage network that delivers power to local

substations. These losses are relative low and usually are less than 5%.

Distribution losses occur in the medium and low voltage feeders that supply individual

customers. These losses depend on the length and loading of the feeders, and the voltage in

these feeders. However in the case of low voltage rural feeders, very long, and chronically

overloaded, the voltage drops of 40% can occur by the end of the feeder and losses up to

20% or more are common.




A10-4

These T&D losses are called “technical losses,” Many States, however, include “non-

technical losses,” such as theft or other unmetered/uncollected uses, in T&D losses. The

usual practice is also to load all losses for all sectors into the catch-all of “agriculture.” This

means the total “losses” can be 35% or even higher.

T&D losses only need to be taken into account in end-use demand side electricity efficiency

CDM projects. A power generation project, such as wind or micro-hydro, will still be subject

to the same losses, whereas an efficiency project will displace both generation and technical

losses (not theft, etc.).

In an efficiency project, care must be taken to use T&D losses that are appropriate to the

end use. A rural efficiency project should use typical or published technical losses for rural

feeders. An urban efficiency project should use lower losses.

Baseline electricity usage = electricity consumption by baseline technology / (1 – T&D

losses)

Annual electricity savings = end-use savings in electricity / (1 – T&D losses)

A Case Study – Bangladesh

Chemical Engineering Department Petroleum and Mineral Resources Engineering Department Bangladesh University of Engineering and Technology Dhaka, Bangladesh

The average daily load curve for Bangladesh shows that approximately 85% of the energy

dispatched is baseload, even though the peak power requirement is nearly 50% of the

baseload requirement. This implies that the intermediate and peaking plants will have an

average annual load factor (ALF) below 30%, and indeed some will have an ALF of 20% or

less. Table 1 presents data related to the gas-based power plants that can only be used as

base load.



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Table 1: Baseload Natural Gas Power Plants and Their Base Year (2001) Generation

No. Name Type (fuel)

Generation Capacity

(MW)

Base Year Net

Generation (GWh)

Heat Rate

Retirement Year

1 Ashuganj 1-2 ST (gas) 100 670 15,034 2006 2 Ghorasal 1-2 ST (gas) 80 415 16,022 2006 3 Siddhirganj ST (gas) 50 293 13,812 2006 5 Ashuganj CC (gas) 74 173 15,873 2010 7 Chittagong ST (gas) 55 328 15,350 2014 8 Ashuganj 3-5 ST (gas) 450 2,730 11,724 2015 9 Fenchuganj CC (gas) 90 273 13,110 2015 10 Ghorasal 3-6 ST (gas) 840 4,077 12,141 2017 11 Rauzan ST (gas) 420 1,583 11,981 2017

Total 2,159 10,542

From the existing power plants, nearly 1,500 MW will remain operational up to and

beyond 2014. The box below shows the gas turbines and oil-fired power plants of the

national grid, along with their base year generation.

�Gas turbine Oil-fired power plants (i) Steam turbine (FO) (ii) Diesel (iii) LDO/SKO

763 MW 436 MW 262 MW 132 MW 49 MW

3,621 GWh 1,123 GWh 905 GWh 191 GWh 27 GWh

As can be seen, 262 MW of the oil-fired capacity is baseload, while the remaining 181 MW is

peaking capacity. The oil-fired power plants are all expected to be phased out and the

predominant peaking plant will be a gas-fired combustion turbine power plant. In the base

year (FY01), the gas turbines and peaking oil-fired power plants produced a total of

3,839 GWh of electricity, which is 24% of the total 16,254 GWh produced.

To estimate future emission coefficient, the marginal power plants need to be identified. It is

obvious that the starting point for this is the government/utility plan. The national utility’s

capacity expansion plan up to 2008 is shown in summarized form in Table 2.




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Table 2: Utility Capacity Expansion Plan

FY02 FY03 FY04 FY05 FY06 FY07 FY08 New CC 360 810 980 1,380 2,280 2,370 2,820 New coal 250 250 250 New ST 210 210 270 690 690 New hydro 100 ST addition to simple cycle 40 149 149 149 149

NOTE: CC = Combined Cycle; ST = Steam Thermal; FY = Financial Year.

The most noteworthy aspect of the proposed expansion program is the nearly 3,000 MW

combined cycle power plants. With increasing demand for electricity, more and more new

baseload plants will be added. It is now almost a certainty that most new baseload power

plants will be gas-fired combined cycle ones, with a heat rate of 7,200 kJ/kWh or better. This

implies that emissions from the national grid baseload power generation will keep on

decreasing.

A very simplified dispatch rule, as detailed below, was used to estimate the year-wise

weighted average CO2/kWh for the national grid for the crediting period from 2005 to 2014.

(i) In the financial year 2001 (FY2000–01), the central load dispatch centre dispatched

16,254 GWh of electricity. The power plants used for this purpose, along with their

base year data, are shown in Appendix A. The base year production has been

used to determine the annual load factor (ALF) for the existing plants in the national

grid.

(ii) The available capacity during the crediting period has been worked out based on

the information provided in Table 1 about the existing gas-fired baseload plants.

(iii) The general shape of the load curve is assumed to remain the same over the 10-

year crediting period. In particular, it is assumed that the intermediate and peak

electricity will be a fixed proportion of the total electricity requirement.

(iv) From an analysis of the energy curve of August 20, 2002, the intermediate and

peak electricity consumed is estimated to be 15% of the total electricity consumed.

Since it has been assumed that this ratio will remain fixed for every day of the

crediting period, the annual energy electricity requirement can be multiplied by 0.15

to determine the intermediate and peak electricity requirement for any given year.



A10-7

(v) During the crediting period, the intermediate and peak MWh requirement, above

that which can be supplied by the existing plants and those planned up to 2008,

has been assumed to be entirely supplied by gas turbine power plants with an

efficiency of 27.5% (heat rate of 13,091 kJ/kWh).

(vi) The electricity requirement up to 2008 is met by the existing plants minus the

retired ones plus the planned power plants shown in Table 1.

(vii) Beyond 2008, the baseload is supplied predominantly by combined cycle gas-fired

power plants with a thermal efficiency of 50% (heat rate of 7,200 kJ/kWh). A small

amount of supply is projected to be available from a 250 MW addition to the coal-

fired power plant expected to go into operation in 2006. Additionally, 1,000 MW of

steam thermal power plants, which might be built as extensions to the existing and

planned steam thermal plants, and for which finance may be made available

through mechanisms like supplier’s credit, have been assumed.

The Bangladesh Power Development Board’s Power Sector Master Plan has estimated that

the electricity demand growth would be approximately 8% up to 2015. There is already

evidence that such a high growth rate will probably not be realized. There are clear

indications that the economy will not perform as projected and that the ambitious capacity

expansion plans will not materialize. Thus, for this project, a 7% demand growth has been

used. Assuming a demand growth of 7%, the electricity requirement between 2005 and 2014

has been calculated starting with a base year (FY01) net generation of 16,254 GWh, and is

presented in the second column of Table 3. These data have been used along with the

dispatch rule discussed above to arrive at the weighted average CO2 emission of the grid.

The full details of the calculations appear in Annex A. Table 3 presents a summary of the

final results of those calculations. Column 3 presents the power requirement in MW to meet

the projected demand. The weighted average CO2 emission for the grid is presented in

column 5, while column 4 presents the hypothetical equivalent based on entirely natural gas

generation.




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Table 3: Weighted Average CO2 Emissions During the Crediting Period (2005 to 2014)

Year GWh MW

Average Heat Rate Based on Natural

Gas Generation (kJ/kWh)

Weighted Average CO2

Emissions (kg/kWh)

2001 16,254 3,588 12,993 0.7289 2005 21,306 4,242 11,168 0.6159 2006 22,797 4,465 11,587 0.6421 2007 24,393 4,803 11,614 0.6455 2008 26,100 5,068 11,375 0.6329 2009 27,927 5,343 11,137 0.6202 2010 29,882 5,590 11,293 0.6313 2011 31,974 5,922 11,055 0.6183 2012 34,212 6,270 10,856 0.6075 2013 36,607 6,643 10,673 0.5974 2014 39,170 6,946 10,358 0.5788

Mean (2005 to 2014) weighted average CO2 emissions = 0.6190 kg/kWh



A10-9

Annex A

Calculation of Weighted Average Grid Emissions Coefficient for Bangladesh

GAS TURBINES

MW Heat Rate MW-% HR-Weight Ashuganj 50 23569 0.0655 1544 Shah 1 70 19818 0.0917 1818 Shah 2 70 15561 0.0917 1428 Shylet 20 15899 0.0262 417 Haripur 90 11266 0.1180 1329 Chattagong 52 13110 0.0682 893 Baghabari 71 13753 0.0931 1280 Westmont 90 16275 0.1180 1920 NEPC 110 16275 0.1442 2346 RPCL 140 13110 0.1835 2406

763 15381 GAS STEAM TURBINES and COMBINED CYCLE

MW GWh Heat Rate MW-% HR-Weight Ashuganj 1-2 100 670 15034 0.0463 696 Ghorasal 1-2 80 415 16022 0.0371 594

Siddhirganj 50 293 13812 0.0232 320 Ashuganj CC 74 173 15873 0.0343 544

Chittagong 55 328 15350 0.0255 391 Ashuganj 3-5 450 2730 11724 0.2084 2444

Fenchuganj 90 273 13110 0.0417 547 Ghorasal 3-6 840 4077 12141 0.3891 4724

Rauzan 420 1583 11981 0.1945 2331 2159 10542 12590

OIL-FIRED – STEAM TURBINES, CT and DIESEL ENGINES

MW Heat Rate MW-% HR-Weight Khulna 1 95 14982 0.2179 3264 Khulna 2 55 15000 0.1261 1892 Khulna 3 46 13110 0.1055 1383 Bheramara 54 16444 0.1239 2037 Saidpur 18 16108 0.0413 665 Barisal 40 16108 0.0917 1478 Rangpur 18 16108 0.0413 665 KPCL 110 16275 0.2523 4106 436 124135 15490

23.4% Weighted Average Efficiency






A10-10

WEIGHTED AVERAGE GRID EMISSION FOR 2005

Electricity Power Efficiency CO2

GWh (%) MW ALF HR (%) kg/kWh Weight

New CC 3638 16.5% 519 0.8

7200 50.0%

0.4039

0.0665

New Coal 0 0.0% 0 0.7

11077 32.5%

1.0479

0.0000

New ST 1288 5.8% 210 0.7 11077 32.5% 0.6214 0.0362

New GT 1567 7.1% 358 0.5 13091 27.5%

0.7344 0.0521

ST addition 914 4.1% 149 0.7 0 100.0% 0.0000 0.0000

Hydro (old+new) 1007 4.6% 230 0.5

0 100.0% 0.0000 0.0000

Old ST+CC (gas) 10402 47.0% 2159 0.55 12587 28.6% 0.7062 0.3322

Old Oil (all) 883 4.0% 336 0.3 15517 23.2% 1.1379 0.0454

Old GT 2414 10.9% 501 0.55 15385 23.4% 0.8631 0.0942

TOTAL 22113 100.0% 4462 0.6265

CC - Combined Cycle, ST - Steam Turbine, GT - Gas Turbine ST Addition - Adding steam turbine to existing gas turbine ALF - Annual Load Factor Gas Generation HR - Heat Rate (kJ/kWh)

WEIGHTED AVERAGE GRID EMISSION FOR 2014

Electricity Power Efficiency CO2 GWh (%) MW ALF HR (%) kg/kWh Weight New CC 17132 38.8% 2445 0.8 7200 50.0% 0.4039 0.1565

New Coal 3066 6.9% 500 0.7 11077 32.5% 1.0479 0.0727

New ST 4231 9.6% 690 0.7 11077 32.5% 0.6214 0.0595

New GT 6721 15.2% 1534 0.5 13091 27.5% 0.7344 0.1117

ST addition 914 2.1% 149 0.7 0 100.0% 0.0000 0.0000

Hydro (old+new) 1445 3.3% 330 0.5 0 100.0% 0.0000 0.0000

Old ST+CC (gas) 8432 19.1% 1750 0.55 12587 28.6% 0.7062 0.1347

Old Oil (all) 289 0.7% 110 0.3 15517 23.2% 1.1379 0.0074

Old GT 1975 4.5% 410 0.55 15385 23.4% 0.8631 0.0386

TOTAL 44205 100.0% 7918 0.5811

CC - Combined Cycle, ST - Steam Turbine, GT - Gas Turbine ST Addition - Adding steam turbine to existing gas turbine ALF - Annual Load Factor HR - Heat Rate (kJ/kWh)

Average Heat Based on Natural 10358 Gas Generation

Average Heat Based on Natural 11168 Gas Generation



A10-11

Net Emissions Reductions Calculation

Determination of the net emissions reduction will facilitate the financial analysis since the

international carbon market will be based on $ per tonne of CO2equivalents (CO2e) or C. The

conversion of CO2e to C is easily accomplished by multiplying the tonnes of CO2e by 0.273.

The units of each gas must be specified individually. Not all greenhouse gases (GHGs) are

easily measured in tonnes or megatonnes (the conventions for emissions reporting) since

they are present in much smaller quantities. However, the final calculation should report all

GHG emissions in tonnes (t) of carbon dioxide equivalent (CO2e).

Note also that there are several types of HFCs and CFCs, as identified in Step 4 below;

each, if applicable, should be included in Steps 1 to 3.

1. Determine Total Baseline Emissions

2. Determine Total Project Emissions

3. Determine Net Emissions Reduction

CO2 CH4 N2O HFC CFC SF6

A On-site emissions

B Off-site emissions

C Total Baseline Emissions (A+B)


D On-site emissions

E Off-site emissions

F Total CDM Project Emissions (D+E)


C On-site emissions

F Off-site emissions

G Net Emissions Reductions (C-F)




A10-12

4. Convert Net Reductions into CO2e using the Global Warming Potential (GWP)

of Each GHG

Net GHG Reduction (From G above, in

tonnes) GWP

CO2e (tonnes)

CO2 1 CH4 21 N2O 310 HFC-23 11,700 HFC-125 2,800 HFC-134a 1,300 HFC-152a 140 CF4 6,500 C2F6 9,200 SF6 23,900 Total Emissions Reductions