The World Bank Floating Solar in Pakistan Project (P176308) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 11/22/2021 | Report No: ESRSC02449 Nov 22, 2021 Page 1 of 10 The World Bank Floating Solar in Pakistan Project (P176308) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Pakistan SOUTH ASIA P176308 Project Name Floating Solar in Pakistan Project Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Energy & Extractives Investment Project 4/21/2022 8/24/2022 Financing Borrower(s) Implementing Agency(ies) Islamic Republic of Water and Power Pakistan Development Authority (WAPDA) Proposed Development Objective Public Disclosure The Project's Development Objectives are to increase supply of electricity from floating solar plants and strengthen capacity of Water and Power Development Authority (WAPDA) in operating solar-hydropower hybrid generation. Financing (in USD Million) Amount Total Project Cost 346.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The Project will finance 300 Mega Watt (MW) floating solar subprojects in the water bodies of Ghazi-Barotha complex. A 150 MW floating solar subproject will be deployed in Ghazi Barrage Headpond and another 150 MW will be installed in Forebay of existing Ghazi Barotha Hydropower Plant. The Project will also build capacity of WAPDA in operating hydropower plants in the Tarbela-Ghazi-Barotha complex in conjunction with the floating solar installations to increase delivery of electricity to meet the peak demand in Pakistan. The Project will also finance interconnection of floating solar subprojects with existing transmission infrastructures, Project Supervision Consultants, Environmental and Social Management Plans, and technical assistance to WAPDA. Nov 22, 2021 Page 2 of 10 The World Bank Floating Solar in Pakistan Project (P176308) D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] Location: The proposed project will be located in Tarbela Ghazi Complex in Swabi and Haripur district of Khyber Pakhtunkhwa. Ghazi Barrage Headpond is in the immediate downstream of Tarbela Dam which is located on the Indus river 110 kilometer (km) from Islamabad. Ghazi Barotha Forebay is a part of the Ghazi Barotha Hydro Power located approximately 50 km downstream of Tarbela Dam and linked with Ghazi Barotha Channel dedicated for the Ghazi Barotha hydropower station. The installation of FPV power plant in water reservoirs like dams is a recent technology being introduced first time in Pakistan at such scale but is considered environmentally friendlier and cost-effective option than conventional land photovoltaic power plants. The Tarbela reservoir covers an area of 24,300 hectare and stretches more than 50 km from the dam. Ghazi Bararge head pond covers an area of 800 hectare and stretches 7 km from the dam to the weir. Ghazi Barotha forebay covers a total area of 400 hectares and primary purpose of the Ghazi Barotha hydro project is power generation. The project area is a rural environment with no industrial emissions. The main sources of air pollution in the region are vehicular traffic, dust arising from unpaved village roads and domestic fuel burning. Minor dust emission may raise due to civil works and increased vehicular traffic during Tarbela Hydropower Fifth Extension works (T5) to be initiated soon and later with the proposed project activities. Surface water quality test conducted during Tarbela Hydropower Fourth Extension (T4) implementation showed acceptable water quality of reservoir within Pakistan National Environmental Quality Standards (PNEQs). Groundwater is the major source of irrigation and domestic water around the project Public Disclosure area, extracted from open wells with electric pumps, Persian wheels and tube wells. The predominant land use in the area is agriculture and pastures with some hilly areas remaining as scrub forest. Local livelihoods in the surrounding settlements of districts Haripur and Swabi are agriculture and livestock based, followed by employments in nearby Islamabad. Since the Project will be implemented within the confined environment of the Tarbela Ghazi Barotha Complex, its social impacts are minimal. This is because no settlements exist in or around the Project area which is closed to all sorts of inhabitation and general public access is restricted. The closest protected area to the Project is the Kala Chitta Game Reserve, located approximately 9 km south of the Ghazi Barotha Reservoir. The project area is modified habitat of broad leaved deciduous and evergreen species and covers much of the wider hilly landscape surrounding the Project. Due to existence of water bodies, the project area is rich in biodiversity including diversified fauna and flora with migratory bird species also reported to visit the area. The fish community in Tarbela Reservoir is highly modified, with established fisheries and stocking of non-native species. Surveys undertaken in December 2020 reported 14 fish species across the project sites, recorded through a combination of gill netting, data from local fishermen and interviews with fishermen. Of these, one is globally Endangered (Tor putitora) and two are Vulnerable (Wallago attu and Cyprinus carpio), both recorded at these sites. Tarbela Ghazi Complex falls in zone (2B) low to moderate level zone as per seismic classification of Pakistan and installation of FPV is not likely to be impacted by seismic activity, however the technical design needs to consider this factor. There is no history of any major water inflow variations in Tarbela Ghazi complex therefore no major risk from floods or overflow of water is anticipated. D. 2. Borrower’s Institutional Capacity Nov 22, 2021 Page 3 of 10 The World Bank Floating Solar in Pakistan Project (P176308) Water and Power Development Authority (WAPDA) will be the implementing agency for the project. WAPDA has a long history of engagement with the World Bank on various projects including Tarbela Hydropower Project (T4 & T5). WAPDA has dedicated Environment and Social Management Unit (ESMU) with experienced environment and social staff having adequate knowledge of World Bank safeguards policies. On T4 project implementation, WAPDA has set many good examples of implementation of ESMPs particularly on solid waste management, afforestation, community development and through well-established GRM mechanism. The E & S performance of T4 project remain satisfactory throughout T4 implementation. WAPDA does not have experience of working with the ESF yet, however given that their capacity to implement safeguard policies is satisfactory, with targeted training any capacity gaps that exist to implement ESF requirement will be met. Such capacity gaps will be further assessed during project preparation and additional resources and robust capacity building needs will be advised in the Environment and Social Impact Assessment (ESIA). Component-3 of the project is also dedicated entirely to environmental and social management of the project and will support preparation and implementation of ESIA and ESMPs. Considering above, the capacity of WAPDA is assessed as adequate. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Environmental Risk Rating Moderate The project is anticipated to have positive environmental impacts through nationwide reduction of GHG emmissions and promoting clean energy technology. The more likely environmental risks are (i) generation of noise and dust, (ii) Public Disclosure consumption of water and raw materials during civil works, (iii) solid waste and waste water generation, (iv) occupational health and safety risk working in water and close to water bodies (v) road safety risk due to increased vehicular traffic and (vi) health and safety risks due to spread of COVID-19 among workers . The project site is planned in a confined area with restricted access, therefore all of these anticipated environmental risks and impacts are limited, reversible, and expected to be temporary in nature, low in magnitude and not anticipated to have serious adverse effects to the environment and human population and can be mitigated. During project operations, the installation of modules may hinder sunlight and air and can alter the water quality that can adversely impact the aquatic habitat. However the literature on operational impacts of floating solar on aquatic habitat is scanty and will be assessed and monitored during project operation. The project activities during construction and operations may also cause disturbance to resident and migratory birds that may stop over during migratory season, for which the impacts and mitigation measures will be assessed under ESS6 and covered in the ESIA. The borrower has a long history of working with World Bank on complex Tarbela hydropower project (T5 extension in progress) and has adequate knowledge and capacity on environmental and social aspects. Environmental and social risks are planned to be managed effectively as Component-3 of the project entirely focuses on implementation of environment and social management of the project. A robust capacity building training plan at all levels for implementing agency, supervision consultants, contractors and sub contractors will be incorporated in E & S instruments to support compliance of the project with the ESF requirements. Considering all above factors, the environmental risk classification of the project is rated as Moderate. Social Risk Rating Moderate Since the Project will be implemented within the highly secured, enclosed environment of the Tarbela Ghazi Barotha Complex, its social impacts are minimal. No settlements exist in the Project area since it is closed to all sorts of Nov 22, 2021 Page 4 of 10 The World Bank Floating Solar in Pakistan Project (P176308) inhabitation and access of general public is restricted. Only inhabitants are employees working on the hydropower generation and transmission who live in purpose-built accommodation constructed at a safe distance from project areas (lake/pond areas). There is no resettlement, displacement, or any perceivable community health and safety risks. There are concerns related to labor management which will be addressed through ESS2 compliance. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: The installation of 300 MW floating solar in water bodies under component-1 will entail typical construction related environmental risks and impacts such as dust emission from civil works and increased vehicular traffic, debris and generation of solid waste and wastewater. The amount of production of waste is relatively high because there will be a large amount of packaging associated with the import of PV panels and the floats. The project also pose occupational health and safety risks including electrical hazards and working within water and close to water bodies may include drowning, slip, trips and falls. The risk of spread of COVID -19 is also present among workers. Land clearance is considered minor only required for storage of material and for construction sites (approximately 1 hectare). Overall, the footprint of environmental risk is expected to be minimal, localized and predictable, likely to occur only during construction phase and can be mitigated. A preliminary ESIA has been prepared which will be updated incorporating relevant standards of ESF and Environment and Social Management Plan (ESMP) for Public Disclosure construction and operation phase. During operations, covering water bodies with FPV installations can increase stratification and limit water mixing below and in the vicinity of the FPV installation. This can result in lower dissolved oxygen levels, and lower temperatures at depth. However, the magnitude of the FPV installation (which will create a barrier to sun and wind which could change water quality) is considered negligible, because the proportion of panel coverage to the overall area of water bodies is very small (0.8 % approx.). FPV systems often use high-density polyethylene (HDPE) pontoons/floats can leach phenolic compounds which could leach into the water and can impact water quality and materials need to be carefully chosen to minimize the risk of leaching. During project operations, the potential risks during extreme climatic events like floods or stroms can end up loosing up of solar panels. The project operational phase risks and impacts will also be assessed during project preparation and covered in updated ESIA and ESMP and respective monitoring plan for operation phase will be prepared. Upon successful pilot of this FPV project, the project may be extended to other watersheds in the area, for which the project needs to conduct detailed Cumulative Impacts Assessment (CIA) or Strategic Environmental Assessment (SEA). Component-2 on project management and TA to support training and capacity building activities and component-3 to support effective environment and social management of the project will positively contribute towards E&S risk mitigation and project sustainability. With regards to social risks, there is no inhabitation in the project area as the Complex is a high security, closed entity with no settlements within or near the construction sites. Hence social impacts are minimal but will be evaluated further in the ESIA and mitigated through the ESMP. Nov 22, 2021 Page 5 of 10 The World Bank Floating Solar in Pakistan Project (P176308) Areas where “Use of Borrower Framework” is being considered: None at this stage. ESS10 Stakeholder Engagement and Information Disclosure WAPDA will be the implementation agency for the project and will prepare a Stakeholder Engagement Plan (SEP) to provide means for effective and inclusive engagement with stakeholders throughout the project life cycle on issues that could potentially affect them. The SEP will identify all parties affected/influenced by the project, and ensure that appropriate project information on project risks and impacts is disclosed to stakeholders in a timely, understandable, accessible and appropriate manner and format. The SEP will also include a grievance redress mechanism (GRM) to receive and facilitate the resolution of concerns and grievances.All the documents prepared by client including ESIA, LMP and SEP will be prepared, reviewed and cleared by the Bank and disclosed on client’s website and WBG Documents and Reports (D & R) site. Further, given the ongoing COVID-19 epidemic, the stakeholder engagement activities will be carriedout in accordance with government mandated SOPs, and WB and WHO/CDC guidelines for ensuring the basic principles of infection prevention, such as social distancing, consultations with small number of participants in well-ventilated spaces, and good hygiene practices. In case of any lockdowns, electronic and remote means of communications will be used instead of face-to-face meetings and consultations. Public Disclosure For GRM, WAPDA has a robust GRM system in place, which was established during T4 implementation. It and will be updated to meet the needs of this project and implemented. The Grievance Redressal Committee (GRC) notified under T4 and T5 has been functioning well. It has been the avenue to resolve any issues related to labor. Due to the stringent role played by GRC, the workers are receiving benefits as per Pakistan’s labor legislation including award of minimum wage, working hours etc. Other site issues such as improvements in worker food, accommodation and medical care have also taken place. To date, 425 cases were registered with the GRC, all of which have been resolved. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions The standard is relevant. The project expects to involve direct workers, contracted workers and primary supply workers. As per initial assessment, approximately 468 direct jobs are expected to be created during the construction phase (183 skilled and 285 unskilled or low skilled), and 37 in the operations phase (22 skilled and 15 unskilled). Most unskilled positions are likely to be sourced from the local districts and neighboring communities, thereby sharing project benefits with communities. Many of the workers are expected to be employed from the existing hydropower projects, therefore reducing new workers coming into the area. Given the use of solar panel, forced labor risks in the supply chain is also an aspect that will need to be assessed during project preparation and managed. Nov 22, 2021 Page 6 of 10 The World Bank Floating Solar in Pakistan Project (P176308) Pakistan has comprehensive labor laws covering the terms and conditions of employment, termination of contracts, working time (working hours, paid leave, maternity leave and maternity protection, other leave entitlements), prevention of child and forced labor, equality, pay issues, workers’ representation in the enterprise, trade union and employers’ association regulation and other aspects. Both Tarbela and Ghazi Barotha have registered labor unions which are active. The project, inclusive of all contracts issued (specifically for primary suppliers), will adhere to national labor laws and WBG standards concerning labor conditions, including forced labor and child labor, which will be forbidden for any person under the age of 18. Contracts for all workers will include a code of conduct, which will be signed when hired. Occupational Health and Safety (OHS) risks are expected due to health and physical hazards associated with civil works and low awareness/experience amongst employers/workers to identify and manage risks particularly OHS risks with anchoring and cabling work in water. To ensure health and safety of workers during the construction and operational phases of the project, the client will develop an OHS plan as part of the ESMP, in line with World Bank Group EHS Guidelines, and to also include COVID-19 related precautions, in accordance with available medical advice, to ensure that all field focused workers are protected. It will include procedures on investigating and reporting accidents and incidents , emergency preparedness and response procedures, and continuous training and awareness of workers. Obligations under the OHS plan will also apply to all contractors involved in the project. The task team will ensure that the client is also familiar with the Environment and Social Incidence Response Toolkit (ESIRT) as a guide to report and manage incidents should they occur. The incident reporting mechanism will be established in the ESIA and will be implemented throughout the project. Public Disclosure As per requirements of ESS2, draft Labor Management Procedures (LMP) will be prepared by Appraisal and its finalization and implementation will be recorded in the ESCP as a Borrower commitment, to be completed immediately after Project Effectiveness and before any activities commence. The LMP will also outline a workers’ GRM, in addition to the project level GRM. All Borrower commitments will be noted in the legal agreement and the ESCP. ESS3 Resource Efficiency and Pollution Prevention and Management The standard is relevant. The project activities under component-1 are anticipated to generate bulk amount of solid waste from civil works and also from packaging material of panels and floats. Large amounts of concrete will also be required to form the mooring blocks. Concrete will likely to be supplied by the T5 batching plant in cement mixers. During construction works, wastewater and generation of solid waste may pose risk of water pollution of the water bodies. Due diligence of raw materials sourcing for civil works from approved suppliers/contractors will be done during ESIA. During operations, the project is anticipated to generate limited amount of hazardous waste (oil and lubricants) and domestic solid waste by O & M staff residential places. The generation of wastewater and resultant water pollution may also occur due periodic cleaning of panels. An assessment of potential impacts and mitigations measures during project operations will be done during updated ESIA and possible methods of dry-cleaning methods will be proposed to avoid the risk of water pollution during operations. Solid Waste Management Plan and Pollution Prevention Plan to mitigate risk of water pollution during construction and operation will be prepared as part of ESIA and respective ESMPs. Nov 22, 2021 Page 7 of 10 The World Bank Floating Solar in Pakistan Project (P176308) A relatively well-developed system of recycling and disposal of materials has been developed around the T4 project. The existing system is robust and will have capacity to absorb changes to the volume of waste generated, and will be assessed and upgraded for this solar FPV project. Over the FPV lifetime, the Project will offset around 7.8 million tons of Carbon Dioxide (mtCO2) equivalent from the Pakistani power system. ESS4 Community Health and Safety The standard is not relevant at the concept stage. The project activities under component-1 will be located in public owned water bodies and state owned land around Tabela -Ghazi complex. The area of the project site is a high security area and requires prior permissions to enter. Since these solar FPV schemes are off limit to the general public, with no communities or inhabitants living within or close to project area the project activities are not anticipated to have any community health and safety impacts on communities. The water bodies being used have existed for many years and are not posing a new risk to the communities. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement The standard is not relevant. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources Public Disclosure The standard is relevant and will be further assessed during project preparation. The FPV modules will be installed in the already modified habitat of existing man-made water bodies and power generation will be evacuated through existing transmission line. The project activities are not located in any critical habitat and not anticipated to have land clearance or removal of vegetation/ trees during construction activities. Mitigation measures for minor land clearance required for camp sites and material storage will be provided in the ESMP. In general, the ecological impacts of FPV in artificial water bodies is less substantial than natural lakes, however details of sensitive receptors of birds, mammals and aquatic habitat will be assessed during project preparation. In particular, the golden masheer (Tor Putitora) is listed as Endangered on the IUCN red list and was recorded during ESIA of Tarbela in 2015, therefore potential risks on population of their habitat will be assessed during updated ESIA. During operations, the installation of modules will hinder sunlight and wind that can alter the nutrient load in water and may also impact the water quality and corresponding ecosystem. Disturbance impacts on local birds and migratory birds during migratory season may be anticipated during construction activities of the project. Solar panels floats can also be a nesting place for birds result in heavy soiling from birds droppings, therefore the operational phase ESMPs shall also incorporate the mitigation and monitoring measures for this aspect. Similarly, disturbance and nuisance to fish species could occur during the installation of cables and anchoring/mooring. Anthropogenic noise has been shown to impact fish reproduction and movement through causing stress and hearing-loss. However, the impacts is considered minor as the covered area proportion to the overall water surface area is less. The updated ESIA of the project will assess relevant aspects of the standard and will provide mitigation and monitoring measures for impacts on aquatic and terrestrial biodiversity. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities Nov 22, 2021 Page 8 of 10 The World Bank Floating Solar in Pakistan Project (P176308) The standard is not relevant. Pakistan’s only recognized Indigenous Peoples, the Kalash, live in 3 valleys in Chitral district of Khyber Pakthunkhwa province, and this project is not located in the area where indigenous people reside. ESS8 Cultural Heritage The standard is not relevant. The physical infrastructure of the project under component 1 is planned in a confined areas of water bodies therefore no impact is anticipated on cultural heritage. ESS9 Financial Intermediaries This standard is not relevant as Financial Intermediaries will not be used. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE Public Disclosure A. Is a common approach being considered? No Financing Partners NA B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: The following will need to be prepared before project appraisal: - Preparation, consultation and disclosure of ESIA - Preparation, consultation and disclosure of SEP - Preparation, consultation and disclosure of LMP - Preparation and disclosure of ESCP Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): The ESCP will refer to various environmental and social actions and measures that need to be carried out during project implementation including but not limited to: -Implementation of ESIA, ESMPs and respective capacity building measures identified in ESIA -Finalization of Draft LMP after Project Effectiveness and implementation of LMP - Environmental and social monitoring and reporting - Recruitment of additional environmental and social specialists to the implementing agency Nov 22, 2021 Page 9 of 10 The World Bank Floating Solar in Pakistan Project (P176308) C. Timing Tentative target date for preparing the Appraisal Stage ESRS 01-Apr-2022 IV. CONTACT POINTS World Bank Contact: Gunjan Gautam Title: Energy Specialist Telephone No: 5220+39023 Email: ggautam@worldbank.org Contact: Mats Johan Rikard Liden Title: Lead Energy Specialist Telephone No: +1-202-830-9822 Email: rliden@worldbank.org Borrower/Client/Recipient Borrower: Islamic Republic of Pakistan Implementing Agency(ies) Public Disclosure Implementing Agency: Water and Power Development Authority (WAPDA) V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Mats Johan Rikard Liden, Gunjan Gautam Practice Manager (ENR/Social) Christophe Crepin Recommended on 19-Nov-2021 at 11:41:8 GMT-05:00 Safeguards Advisor ESSA Pablo Cardinale (SAESSA) Cleared on 22-Nov-2021 at 12:29:21 GMT-05:00 Nov 22, 2021 Page 10 of 10