INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 05/02/2014 Report No.: AC7118 1. Basic Project Data Original Project ID: P131263 Original Project Name: Rural Electrification and Renewable Energy Development II (RERED II) Project Country: Bangladesh Project ID: P150001 Project Name: RERED II Additional Financing Task Team Leader: Zubair K.M. Sadeque Estimated Appraisal Date: April 24, 2014 Estimated Board Date: June 19, 2014 Managing Unit: SASDE Lending Instrument: Investment Project Financing Sector: Other Renewable Energy (100%) Theme: Rural services and infrastructure (100%) IBRD Amount (US$m.): 0 IDA Amount (US$m.): 71.98 GEF Amount (US$m.): 0 PCF Amount (US$m.): 0 Other financing amounts by source: BORROWER/RECIPIENT 0.00 Global Partnership on Output-based Aid 5.80 LOCAL: BENEFICIARIES 10.80 Non-Government Organization (NGO) of Borrowing Country 29.16 Financing Gap 0.00 45.76 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] or OP 8.00 (Rapid Response to Crises and Emergencies) 2. Project Objectives The proposed project development objective (PDO) is to increase access to clean energy in rural areas through renewable energy. 3. Project Description In support of GOB's vision of providing universal access to electricity by the year 2020, the Project would support the provision of renewable energy based electricity services, clean fuels, and modern cooking methods using the capabilities of NGOs and the private sector. The Project will also support institutional development in the public sector so that the GOB can play a more effective role in increasing access to modern energy services. The additional financing is required to scale up Component A (access to electricity), covering installation of solar home systems (SHS) and other renewable energy-based options under the Remote Area Power Supply Systems (RAPSS). It is also proposed to drop Component C (energy efficient lighting), which had been allocated US$17 million, and reallocate those funds to other components. Proposed Components for the additional financing (US$65 million) and the proposed restructuring of the original project (US$17 million re-allocation) are as follows: a. Component A: Scale up of the Access to Electricity Component (US$65 million from additional financing and US$12 million from reallocations). This will provide credit support for installation of additional 400,000 SHS. This will also support other eligible RAPSS as and when basis. The proposed additional financing includes technical assistance support (US$2.7 million) for the SHS and other RAPSS programs, including quality assurance, training and outreach, environmental protections, studies and planning, and goods. Together with support from IDCOL reflows and other funding sources, the target of the Project is 950,000 SHS (550,000 from the original credit and 400,000 from the additional financing/reallocation), 42 mini-grids, and 1,600 irrigation pumps. b. Component C: Sector Technical Assistance (US$5 million). In addition to continuing support for sector reform and capacity building through the Power Cell, this component will also provide support for promoting energy efficiency and developing and enforcing quality standards. It will fund a feasibility study for introduction and promotion of LED lights in the country. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The main investment components will support electricity access and clean energy services in the rural areas of Bangladesh where grid electricity has not reached or is not expected in years to come. 5. Environmental and Social Safeguards Specialists Mr Shakil Ahmed Ferdausi (SASDI) Ms Sabah Moyeen (SASDS) Mr Iqbal Ahmed (SASDI) 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The proposed additional financing to the Rural Electrification and Renewable Energy Development II (RERED II- P131263) is targeted to further promote and scaling-up access to electricity through renewable energy by installing solar home systems and other options. No major changes are envisaged in the scope of the proposed additional financing except that the energy efficient lighting component is proposed to be dropped. The project yields net positive environmental impacts. The project is designated as environmental Category B (partial assessment) according to OP/BP of the Bank and only two environmental safeguard policies OP/BP 4.01 and OP/BP 4.10 have been triggered. No significant and/or irreversible adverse environmental and social issues are expected in the sub-projects financed under the project. The project components mainly deal with the solar panels and batteries. The mini/micro-grid (Solar based system) does not associate with air or water pollution during operation phase. The improper disposal/ recycling of lead-acid storage battery and improper disposal of PV panel of solar system and slurry for biogas are identified as key anticipated negative impacts and appropriate safeguards have been put in place. Several measures have been undertaken by the infrastructure Development Company Limited (IDCOL) to ensure the long lifetime of PV panel, proper collection of expired PV panel and batteries, strengthen SHS battery recycling including refinancing for battery replacement, and enhanced incentives for POs and manufacturers for collection of expired batteries. All battery recyclers and battery manufacturers rare required to have ISO 14001:2004 and OHSAS 18001:2007 certifications. Enhanced incentives and monitoring systems have been put in place to ensure that the expired batteries are collected by the POs and sold to compliant recycling facilities for ensuring proper recycling. Although the additional financing does not cover biogas plants for cooking, the original credit supports such plants. An environmental screening/assessment along with the mitigation plan has been put in place. No public land will be used for the Project, and no land acquisition will be financed under the Project. Land required for the RAPSS sub-projects will be private lands made available by the sub-project sponsors via direct purchase or by leasing. IDCOL requires that the land for the sub-projects is free of disputes and encumbrances. All land transactions are documented as part of sub-project due diligence by IDCOL. All land for Project use, whether made available via direct purchase or leasing, will be screened to ensure that no physical or economic displacement of communities/persons will take place, and lands which are disputed or have encroachments on them (informal settlers, non-titled entities) will not be used for the Project. It may be mentioned that such encumbrances are very rare in rural areas. The Project may extend facilities in areas where indigenous people (IPs) live and therefore Indigenous Peoples Policy (OP/BP4.10) has been triggered. Availing the facilities/services/products under the components of the Project is purely on a voluntary basis for all paying customers (including IPs). No negative impacts are anticipated towards IPs. In cases of project activities in the IP areas like Chittagong Hill Tracts, the POs are well-versed in IP languages to offer adequate consultation on maintenance of products, proper usage of facilities offered, awareness raising, and training. A Tribal Peoples Framework (TPF) has been prepared and included in the ESMF based on which sub-project specific Tribal Peoples Plans will be developed as and where relevant. The POs will undertake free, prior and informed consultations with IPs on maintenance of products, proper usage of facilities, awareness raising and training as laid out in the TPF. Although OP 4.10 was not triggered for the previous phase, IDCOL has maintained the consultation process and has conducted regular field based monitoring of the processes. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The major environmental concerns of the original project were: (i) improper disposal/ recycling of lead-acid storage battery used in SHS; and (ii) health impact of mercury from improper disposal of CFL bulbs. However in the proposed additional financing, the energy efficient lighting component that supported deployment of CFL bulbs is proposed to be dropped (adopting a national guideline for safe disposal of CFLs will continue to be supported and the consultant work on developing the guideline is continuing). The implementing agencies will take measures to ensure appropriate collection and recycling of lead-acid batteries following the World Bank Group Occupational Health and safety Guidelines. Also improper disposal of PV panel of solar systems is identified as anticipated negative environmental impacts in the updated ESMF. The PV panels have to comply with the standards of the Technical Standard Committee of IDCOL that requires 20-year warranty for panels. IDCOL will develop a guideline for safe disposal of PV panels so that when the panels reach the end of their useful lives, there is an adequate mechanism in place for ensuring safe disposal of the panels. . All the expired batteries will be collected at the offices of Partner Organizations (PO) and Battery suppliers at each division in Bangladesh to ensure the proper collection and recycling. The battery manufacturing and recycling plants are required to have ISO 14001:2004 (Environmental Management Standard) and OHSAS 18001:2007 (Occupational Health Safety Standard) certifications to ensure proper recycling of batteries. For biogas plants, an environmental screening/assessment along with the mitigation plan by the project sponsor for any number of cattles/birds or any location (urban or rural) is required. IDCOL reviews the plan and visits the project site and assesses the suitability of the site in respect to environmental and social and safeguards. Such plans are shared with the relevant stakeholders. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. No alternative analysis was carried out at this stage. However, alternative options will be explored during the sub-project identification and design phase for mini depending on the environmental and social impact assessments. The purpose of this Framework is to identify the likely environmental and social impacts, propose suitable alternatives and mitigation measures for solar home systems, mini-grids, micro-grids, biogas and biomass based captive plants, biogas digesters for cooking, improved cookstoves, and solar irrigation pumps. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. Legislative bases for Environmental Impact Assessment (EIA) in Bangladesh are the Environmental Conservation Act 1995 (ECA'95) and the Environmental Conservation Rules 1997 (ECR'97). Department of Environment (DOE), under the Ministry of Environment and Forest (MOEF), is the regulatory body responsible for enforcing the ECA'95 and ECR'97. Other law of Bangladesh like Renewable Energy Policy of Bangladesh (2008), Bangladesh Labor Law (2006), etc. will be obliged for the project. The ESMF will also be guided by the World Bank's Safeguards (Relevant Policies) mainly OP 4.01. The implementing agency IDCOL has already gained considerable experience in implementing Bank-supported projects complying with the environmental and social safeguards requirements of the World Bank and various other development partners and also that of the Department of Environment (DOE). IDCOL has already established the Environment and Social Safeguards Management Unit (ESMU) to institutionalize the environmental and social management in its operation. IDCOL has a full-time environment staff member who is working with the POs and battery manufacturers/suppliers to raise awareness about the importance of environmental and social safeguards and to discuss the environmental impacts of improper disposal or recycle of lead-acid batteries. Another staff has been appointed and will join from May 2014. Visits are made by the staff to all battery recycling plants on half-yearly basis for ensuring environment compliance. Environmental and social consultants appointed by the sub-project sponsors guide the sponsors in preparing and reviewing the environmental and social assessment/screening for subprojects. No public land is used for the Project, and no land acquisition will be financed under the Project. Land required for the sub-projects are private lands made available by the sub- project sponsors via direct purchase or by leasing. The implementing agency requires that the land for the sub-projects is free of disputes and encumbrances. All land for Project use, whether made available via direct purchase or leasing, is screened to ensure that no physical or economic displacement of communities/persons will take place, and lands which are disputed or have encroachments on them (informal settlers, non-titled entities) are not used for the project. The project may extend facilities in areas where indigenous people (IPs) live although availing the facilities/services/products under the access to electricity and household energy components of the Project is purely on a voluntary basis for all paying customers (including IPs). No negative impacts are anticipated towards the IPs. Considering the fact that SHS are reaching the IPs and other sub-projects under RAPSS will reach the IPs, the indigenous People's policy (OP4.10) has now been triggered and a Tribal People's Framework (TPF) has been adopted. A Gender Responsive Social Assessment for the RERED II Project was carried out in 2012 during the original phase of the project. The detailed assessment design was based on the experience of the predecessor RERED project taking into account the learning and feedback from the project beneficiaries. Using a gender lens of analysis, the assessment report explored the impacts, problems and opportunities in the Solar Home Systems (SHS), improved cook stoves (ICS) and biogas plants for cooking in the lives of women living in remote rural areas. Based on those findings and recommendations, IDCOL has introduced several measures like incorporating requirements in its SHS installation manual to consult with the women in the households before putting in the light connections, training female motivators to market door to door about the biogas plants supported under the project, introducing cook stove models that are suitable for women etc. Several measures have been undertaken by IDCOL to strengthen the battery recycling under the SHS component of the REREDII project that includes refinancing for battery replacement and enhanced incentives for POs and manufacturers for collection of expired batteries. The following are the major progress achieved under the ongoing REREDII (and the predecessor RERED) projects: • All the 17 battery suppliers in IDCOL in SHS program have fully completed the ISO 14001:2004 (Environmental Management Standard) and OHSAS 18001:2007 (Occupational Health Safety Standard) certification process. Out of the existing 17 battery suppliers, 3 have their own recycling plants while the rest have entered into arrangements with the existing 3 recycling plants to use their facilities. • For the efficient lighting component (now proposed to be dropped), an international consultant firm has been hired to develop a national guideline for the proper disposal of lamps and ensure safe collection of waste CFL bulbs. The work is currently on-going and will continue to ensure safe disposal of CFLs that are being used in Bangladesh. • Audit Consultants (Environment Audit specialist and Mechanical Engineering Specialist) are being hired for undertaking an environment audit to assess the adequacy of the current mechanism for ensuring proper recycling of batteries. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The primary stakeholders are the project beneficiaries who are availing the project services (solar home systems, connections from mini-grids, water supply from solar irrigation pumps, or biogas digesters for cooking) through a commercial transaction on a purely willing buyer-willing seller basis. As part of the commercial transactions, the participating organizations (POs) consult with the potential customers about the benefits of the project services and the beneficiaries (households/shops for SHS or mini-grid connections or farmers for water supply from pumps) will have to agree to buy the project services and pay for the services. In cases of project activities in the indigenous people areas like Chittagong Hill Tracts, the POs are well-versed in IP languages to reach out to potential customers. A monthly Operational Committee meeting is held with the senior representative of all partner organizations (POs) participating in the program where different issues pertaining to project implementation are discussed. The implementing agency (IDCOL) has an established method for addressing grievances in this project. All customers relevant to all sub-projects are given the contact numbers for IDCOL Customer Care Center which is staffed by male and female members. All complaints are recorded and a computerized documentation process shows exactly which complaints have been resolved and which require follow-up. Complaints are then registered at the relevant branch offices of the partner organizations (POs) where they are resolved. If the complaint is not resolved within a reasonable time, the issue is discussed at the monthly Operational Committee Meetings. In the rare event that complaints are not resolved at this stage also, the customer is free to go for legal action. An environmental management and social management framework (ESMF) was adopted under the original RERED project, which was updated during the two additional financing of RERED. The ESMF has been further reviewed and revised for the RERED II Project. The update was mostly to reflect the dropping of the efficient lighting component and for including the tribal people's framework (TPF). The updated ESMF of RERED II Additional Financing includes an assessment of the progress on the compliance of the activities undertaken in the existing ESMF. The ESMF includes appropriate templates for environment and social screening including the tribal people's framework. Where needed, an Environment Management Plan (EMP), a Social Management Plan (SMP) and Tribal People Development Plan (TPP) will be prepared for sub-projects. The updated ESMF has been prepared by IDCOL in a series of consultations with the relevant project stakeholders including POs (NGOs), battery manufacturers, existing and potential users of renewable energy technologies, and other agencies. The updated ESMF along with the summary of the ESMF in Bengali language has been disclosed in IDCOL website on April 20, 2014 and in World Bank Infoshop on April 21, 2014. The environmental screening/assessment for different sub-projects will include mandatory consultations in the field level. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 04/20/2014 Date of "in-country" disclosure 04/20/2014 Date of submission to InfoShop 04/21/2014 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 04/20/2014 Date of "in-country" disclosure 04/20/2014 Date of submission to InfoShop 04/21/2014 Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Sector Manager (SM) Yes review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the Yes credit/loan? OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as Yes appropriate) been prepared in consultation with affected Indigenous Peoples? If yes, then did the Regional unit responsible for safeguards or Sector Yes Manager review the plan? If the whole project is designed to benefit IP, has the design been reviewed Yes and approved by the Regional Social Development Unit or Sector Manager? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Yes Infoshop? Have relevant documents been disclosed in-country in a public place in a Yes form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities Yes been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the Yes monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the Yes borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Zubair K.M. Sadeque 04/20/2014 Environmental Specialist: Mr Shakil Ahmed Ferdausi 04/20/2014 Social Development Specialist Ms Sabah Moyeen 04/20/2014 Additional Environmental and/or Mr Iqbal Ahmed 04/20/2014 Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Francis V. Fragano 05/01/2014 Comments: Sector Manager: Ms Julia Bucknall 05/01/2014 Comments: