Report No. PID7779 Project Name Cameroon Petroleum Environment Capacity(@) ... Enhancement (CAPECE) Project Region Africa Sector Environment Project ID CMPE48204 Borrower(s) The Government of Cameroon Implementing Agency Pipelines Steering and Monitoring Committee BP 522 Yaounde, Cameroon, The Permanent Secretary Telephone: (237) 209860 Fax (237) 204651 Date the initial PID was prepared April 22, 1999 Date Expanded PID Prepared October 27, 1999 Date Appraisal started July 26, 1999 Projected Board Date December 15, 1999 Country and sector background 1. Because of its offshore oil resources and favorable agricultural conditions, Cameroon has one of the best-endowed and most diversified primary commodity economies in sub-Saharan Africa. Still, it faces many of the serious problems experienced by other underdeveloped countries, such as political instability, a top-heavy civil service, and a generally unfavorable climate for business enterprise. The development of the oil sector created rapid economic growth between 1970 and 1985. Growth came to an abrupt halt in 1986, precipitated by steep declines in the prices of major exports: coffee, cocoa, and petroleum. Export earnings were cut by almost one-third and inefficiencies in fiscal management were exposed. In 1990-93, with support from the IMF and World Bank, the government began to introduce reforms designed to spur business investment, increase efficiency in agriculture, and recapitalize the nation's banks. Political instability, following non- transparent elections in 1992, brought IMF/WB structural adjustment to a halt. Although the 50t devaluation of the currency in January 1994 improved the potential for export growth, mismanagement remains and is the main barrier to economic improvement. 2. The Government of Cameroon has been working with the support of the World Bank and IMF to improve and consolidate macroeconomic stability and management of public finances. Since mid-1996, there is evidence of determination on the part of the Government of Cameroon to tackle the economy's fundamental problems. In this context, the World Bank has provided three Structural Adjustment Credits (SAC) which have supported the Government's efforts in macro economic sector reforms and the liberalization of the economy. The first and second SACs were successfully completed and a follow-up SAC III is currently being implemented. The IMF approved an ESAF program in August 1997 which was successfully implemented, and a second annual program was approved by the IMF in September 1998. 3. Over the last three years, Cameroon's economic performance has significantly improved. Cameroon has attained primary surpluses of 5.5-6 percent of GDP per year, all external arrears have been eliminated except to bilateral non-Paris Club creditors, and the growth rate of GDP has risen to over 5 percent in real terms. Major structural reforms have been implemented, or are under way, including a far-reaching privatization program covering all utilities that is scheduled for completion in the next 18 months. 4. Since 1985 oil production has declined although Cameroon is currently the fifth largest producer of petroleum in sub-Saharan Africa (following Nigeria, Angola, Gabon and Congo-Brazzaville). Petroleum development activities were revived in 1996 following government approval of new financial incentives for oil production from marginal fields with less than 20 million recoverable barrels over a 3-5 year economic life. In 1998, legislation was passed to encourage foreign investment in petroleum and gas exploration and production. This legislation included tax incentives which were linked to the risks taken in prospecting for new fields. These incentives allowed exploitation in recently opened oil and gas fields to compensate for the 10-15 percent decline in traditional sources. Consequently, existing petroleum production levels have been sustained at about 110,000 barrels/day and even risen with new exploration. Oil and gas account for 26t of exports. Petroleum product management is not free of environmental and social risks and the Government's ability to respond to and mitigate these risks is very weak. 5. The Chad-Cameroon Pipeline Project (CCPP) is sponsored by a Consortium composed of Exxon (40%), Shell (40%) and Elf (20%) who will jointly develop the Doba oil fields in the south of Chad over a 30 year period and build a pipeline that traverses Chad and Cameroon from Doba to the west coast of Cameroon at Kribi. An offshore loading station will also be built near Kribi. IFC is participating in the funding of the consortium's investments for about US$ 150 m of the US$ 3,500 m total investment, including the implementation of the Environmental Management Plans (EMP). 6. The development of the oil fields will be wholly-owned by the consortium but the export system will be owned and operated by two joint-venture pipeline companies, one for the portion located in Cameroon (COTCO) and the other for the portion located in Chad (TOTCO). These companies will be majority-owned by the oil companies (80 percent) but the Government of Chad will hold minority interests in both pipeline companies responsible for exporting its oil, while the Government of Cameroon will hold a minority interest in the Cameroon pipeline company. The World Bank (IBRD) has been approached by the Governments to help finance their respective shares in the companies for a total of US$ 90 m as well as help finance parallel capacity building projects to assist Chad and Cameroon in managing the environmental, social and revenue aspects of the pipeline project. This CAPECE project is a capacity building project which has been developed at the request of the Government of Cameroon to ensure the smooth implementation of its responsibilities in the Cameroon EMP and in environmental management in general. -2- 7. The construction of the pipeline through Cameroon is scheduled to start during 2002 and last for about two years. The development of the oil fields in Doba (Chad) will take nearly four years. The Environmental Management Plan (EMP) and the Compensation Plan (CP) for the pipeline and its associated infrastructure have been finalized. They have been made available to the public in June 1999. In compliance with Bank policies, they contain an Indigenous Peoples Plan (IPP) as well as the management of environmental offsets for Cameroon (Campo Ma'an and Mbam Djerem). The environmental and social safeguards apply to five major sectors: petroleum: prevention of oil spills rural development: implementation of the IPP and of the environmental offsets health services: for the prevention of transmission of disease infrastructure: prevention of negative environmental and social impacts of road construction and maintenance social development: implementation and monitoring of the Compensation Plan. No project-related resettlement is expected in Cameroon. 8. The CCPP Consortium is responsible for the implementation of most of these safeguard measures. The role of the Government of Cameroon will be to (i) control the proper execution of these safeguard measures, (ii) monitor the status of the environment around the pipeline and its associated infrastructure and (iii) oversee the management of the environmental offsets and implementation of the IPP. The capacity to undertake these, as well as the experience in doing so at this scale, are presently lacking and need to be developed. 9. The Government (GoC) has shown its commitment to protecting Cameroon's environment by preparing a National Environmental Management Plan (NEMP) in 1996. Major laws have been passed, including the Forest Law of 1994 and, in direct application of the NEMP, the Environmental Framework Law of 1996. Implementation decrees for the latter have been drafted (including for Environmental impact Assessment (EA) and pollution management) and are expected to be soon published with the assistance of UNDP on a separate project (NEMP-II). 10. The NEMP includes a list of activities to be implemented which are of high priority. The full integration of the implications of the NEMP in the various sectoral policies also needs to be carried out. The GoC lacks the capacity to enforce existing legislation as well as to implement its NEMP. Coordination among the various governmental bodies and agencies involved in environmental protection is weak. The Permanent Secretariat for the Environment (SPE) has only recently been established in the Ministry of Environment and Forestry (MINEF). The strategy identified in the NEMP calls for a relatively light coordination function carried out by the SPE, with sector ministries assuming the main responsibilities for regulating and monitoring environmental concerns in their respective areas. 11. The government has established the Pipeline Steering and Monitoring Committee (Comite de Pilotage et de Suivi des Pipelines - PSMC), to oversee and monitor all social and environmental aspects of the pipeline project. This role is consistent with the recommendations of the Environmental Assessment of the CCPP and with Cameroon's NEMP. The PSMC is responsible for ensuring that Cameroon complies with its obligations under the Environmental Management and Compensation Plans for the CCPP. It is composed of an inter- -3 - ministerial coordination Committee and of a Permanent Secretariat. An "arrete" which describes in detail the role, functions and composition of the Interministerial Committee, as well as of the Permanent Secretariat, has been published on August 24, 1999. Project objectives 12. The project aims to develop and establish a national capacity in Cameroon for the environmental management and monitoring of the Chad-Cameroon Pipeline Project (CCPP). This capacity will also help Cameroon address environmental issues in the petroleum sector, a critical requirement to attract and maintain a high level of foreign investment in the country. Project description 13. The Cameroon Petroleum Environment Capacity Enhancement (CAPECE) project will ensure that the Government of Cameroon makes the Chad Cameroon Pipeline Project comply with the environmental and social safeguard policies of the World Bank Group, a precondition for the involvement of the international community in the funding of CCPP. Because of its capacity building objective, CAPECE will help implement the three key objectives of the Cameroon Country Assistance Strategy (CAS): improve resource mobilization, improve productivity of the poor, notably through the implementation of the Indigenous Peoples Plan (IPP) and the Compensation Plan, improve the climate for private sector development e in this regard, the project will target private sector development in the petroleum sector (environmental assessment, environmental audits). The project aims to enhance Government capacity to protect the environment and mitigate the potential negative social and environmental impacts of the CCPP. It will, in particular, support the implementation of project plans for compensation, prevention and management of health impacts, indigenous peoples and biodiversity conservation. 14. The major activities to be implemented by the Government can be categorized as follows. Construction Period (year 2-4) Operation period (year 5-25) Prevention of terrestrial oil Prevention and management of marine & spill risks & wastewater management terrestrial oil spill risks Mitigation of environmental health risks during construction Oversight of the management of the Oversight of the management of the environmental offsets environmental offsets Oversight of the implementation Oversight of the implementation of of the Indigenous Peoples the Indigenous Peoples Plan (IPP) Plan (IPP) Prevention and management of poaching risks during construction -4- The activities funded under the CAPECE project will be. Development of an enabling framework Drafting of, publication of, training on and dissemination of 12 decrees regulations to implement the framework law on environmental management of 1996 Long term vision study Coordination Capacity Enhancement (PSMC) Central level (Permanent Secretariat) Field Unit levels (bio-physical, socio-economic) Information, Education & Communication (IEC) Intervention Capacity Enhancement Health Management activities (Ministry of Health, NGOs) Government Oil Spill Response Plan and implementation Local administrative capacity enhancement (Transports, Forestry, Mining, Research) Monitoring & Evaluation Provision of the Services of an International Advisory Panel Monitoring of the implementation of the EMP and Management Information System 16. The PSMC and the Chadian Committee in charge of environmental management of the petroleum sector (National Technical Committee for the Monitoring and Control of the environmental impacts of pipeline projects) will regularly cooperate under the IEC component of this project and the environmental component of the parallel Chad Petroleum Capacity Building project, the appraisal of which started in June 1999. Project financing 17. Total project cost is estimated at US$ 13.29 m, and the IDA funding requirements have been estimated at US$ 5.77 m, with GoC financing US$ 7.52 m, including taxes and duties. Project implementation 18. The Pipelines Steering and Monitoring Committee (PSMC) was established by the decree 97/116 of July 7, 1997, "to lay down the terms and conditions of implementing Law 96/14 of August 5,1996, governing the transportation by pipeline of hydrocarbons originating from other countries". An arrete "organizing and setting the operating rules of PSMC" assigns a series of responsibilities to the committee, among which the following concern management of the environmental and social impacts of pipeline projects: monitoring and implementation of environmental management plans, review of queries and comments from the public on the environmental aspects of projects,the production of reports on the environmental component of the pipeline project. Project sustainability 19. The need for environmental management in the petroleum sector will extend over a longer period than the CAPECE project's five years of operation. The Government of Cameroon, during these five years, will undertake a long term vision study to determine (i) the optimal institutional, regulatory and policy frameworks for improving environmental management in the petroleum sector, (ii) the resource requirements for putting in place and maintaining these frameworks and (iii) the resources - 5 - available to implement them. Lessons learned from past operations in the country/sector 20. Implementation of forestry-related conditionality under SAC III has required extensive dialogue between Government, the Bank, IMF, other donors, and the private sector. The release of the second tranche of the SAC, related to the forestry conditionality, has needed extensive dialogue due to delays by the GoC in fulfilling certain conditions of tranche release. The lesson learned from this experience has been the need for transparent, open, intensive and extensive dialogue, involving all elements of civil society as well as Government, in order for policy reform in this sector to be accepted and sustained. Continued broad public debate and international attention will be needed to ensure that the Government lives up to its commitments on environmental management in the context of the pipeline project. 21. The Transport Sector project first brought to the Government's attention the importance of addressing environmental impacts at a sectoral level. Consistent with the approach proposed in the NEMP, this project is successfully building environmental management capacity in the Ministry of Public Works and has developed an agenda for environmental management capacity building in the Ministry of Transport. The lesson is that capacity can and should be developed in sectoral agencies, and can be effective even in the absence of strong leadership from the Ministry of Environment. 22. The privatization of Hevecam, Socapalm, and Camrail under the Privatization Program has shown that weak environmental assessment and management capacity results in poor concession policy design and can hamper the privatization process. Building environmental management capacity for the country is therefore key to attracting future private investment and putting Cameroon on a sustainable growth path. 23. Although the Forestry Law provides that all development projects which may harm the forest cover of the country should be subjected to a prior environmental assessment, such assessment has not been done as part of the preparatory work for the allocation of new forestry concessions, and there is no capacity to do so in the Forestry Department. The GEF Biodiversity Conservation Project, implemented by the Department of Wildlife in the Ministry of Environment and Forests, has also encountered major implementation problems, which are only now being addressed after a prolonged Mid-Term Review. Improved coordination and capacity building within this Ministry is essential to bring Cameroon's performance on environmental management up to international standards. The present project will not address this issue directly, but will help to lay the foundations for a potential future Forestry/Environment operation that would support this objective. 24. The Cameroon Health Sector Project, in contrast, has demonstrated the limited absorptive capacity of public institutions in the health sector and the difficulty of reaching the poor with health services, particularly those in remote rural areas. New approaches need to be tried, including the delegation of basic health awareness activities and distribution of key supplies to civil society partners outside of government. The project awaits government proposals in this respect and the team will discuss them during appraisal. -6- Critical Risks Risk Risk Rating Risk Minimization Measure Lack of commitment by S Contractual obligations under Government to fully implement the EMP in the IBRD loan to safeguard policies. Cameroon International Advisory Panel Public opinion/IEC component. Lack of coordination among M Centralization of authority different governmental agencies. under PSMC Training and incentives for decentralized agency staff. Lack of participation by project S IEC component affected people. IPP participatory approach International Advisory Panel Personnel do not remain in the M Supportive working conditions public service after training are offered to the trained has been received and/or are not personnel. motivated to act against all forms of environmental and social degradation. Equipment and procedures M A Project Implemention Manual are not in place in time and/or (PIM) including a Procurement they are not operational when Plan will be adopted by GoC and where they are needed. prior to project effectiveness. Procurement and management of equipment are centralized at PSMC and equipment use will be programmed on a monthly basis. Procedures will be regularly audited. The International Advisory M The terms of reference for the Panel (IAP)'s advice is not Panel emphasize its pedagogic discussed within PSMC, not relationship with PSMC. The acted on, and not GoC will make the Panel's disseminated broadly. reports publicly available. Bank supervision will look closely at this issue. Overall Risk Rating M Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N(Negligible or Low Risk) Supervision will be intensive and conducted in conjunction with pipeline supervision. Poverty category -7- 25. This project will participate in alleviating poverty by facilitating the Pipeline project and thus allowing the Government of Cameroon to share the benefits of the pipeline with the poor directly (Indigenous Peoples Plan) or indirectly (protection of natural resources, the access to which is essential for long term poverty alleviation). Environmental aspects 26. This is a Category C project, as it is a capacity building project with very little physical investment. All equipment funded under the project will be state-of-the-art and will follow the latest environmental specifications. Environmental benefits are expected from this project which will help build national capacity in management of environmental impacts of petroleum projects. Program Objective Categories 27. CAPECE will contribute to improved environmental management of the petroleum sector in Cameroon through a combination of capacity building and institutional development. Contact Points: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Task Manager Jean Roger Mercier The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-5565 Fax: (202) 473-8185 Annex 1: Project Description CAMEROON: Petroleum Environment Capacity Enhancement (CAPECE) Project The context 1. The Project aims at developing the capacity of Cameroon to deal with environmental management issues associated with the construction and operation of a system transporting oil by pipeline through Cameroon from the Chadian frontier to the marine area near Kribi on the Cameroon Atlantic coast. More specifically, the Project aims at strengthening existing and building additional capacity for the implementation and monitoring of the mitigation measures defined by the Environmental Management Plan (EMP) for the Chad-Cameroon Petroleum Export Project. Cameroon needs to strengthen the capacity of all its institutions dealing with the various impacts of the Petroleum Export Project and to coordinate their efforts in this endeavor. - 8 - 2. Environmental Management includes the full range of activities required to safeguard the affected population and the affected natural environment against negative impacts. In that context, environmental management includes nature conservation, but has a broader scope, including protecting human health and minimizing local social conflicts. 3. The GoC has made the strategic choice to have the EMP implemented centrally by one coordinating body. This choice aims at ensuring maximum consistency in the activities of the various administrations having precise mandates in this project, facilitating the contacts between the Government and COTCO, the pipeline operator in Cameroon, through the selection of a single interlocutor, and reaching maximum efficiency in situations where interventions are required quickly and need to be implemented without any bureaucratic delay. The institutional setup 4. The main body responsible for the environmental management of the pipeline project is the Pipeline Steering and Monitoring Committee (PSMC), chaired by the Head of SNH, the national oil company. In order to fulfill its mandates and responsibilities, the PSMC is organized in two branches: the "Comite de Suivi" (CS) which is the administering board and policy-maker, and the Permanent Secretariat (PSMC) which is the operational arm. The relationship between CS and PSMC is detailed in the presidential order and shall be included in the Project Implementation Manual (PIM). The PSMC is equipped with six different sections in charge of the various aspects of the PSMC's mandates, and three field units. These sections are the following: An Environment, Routing and Security (ERS) Section which will carry out the following: Provide an interface with the International Advisory Panel, Coordinate all environmental interventions related to environmental management for the pipeline, Manage the three field units, Provide an interface with the other units of the PSMC, in particular the Legal Unit (LS), Manage all the common functions (including oversight of the implementation of the Compensation Plan, the Indigenous Peoples Plan e IPP e and of the Offsite Environmental Enhancement Program e OEEP e as described in the EMP) Monitor the outcomes and the performance of the program. A Legal Unit which oversees the preparation of the required regulations and procedures, and reviews all legal aspects of the PSMC work program and activities, An Administration and Accounting Unit, An Communication and Education Unit which will be in charge of the project's Information, Education and Communication (IEC) component, An Economics and Finance Unit, An Engineering Unit. Field Units: Also, the PSMC will manage two terrestrial and one marine field unit during pipeline construction, to fulfill its mandate to monitor the impacts of construction activities on the ground. -9- 5. The Environmental Management Plan (EMP) and the Compensation Plan (CP) of the Chad-Cameroon Petroleum Export Project, which have been approved by Cameroon, identify the monitoring and control actions that are the responsibility of the Government. These actions relate to the biophysical (soils, air, water) environment, the socio-economic activities and health management. Also and as part of its oversight responsibility for the Environmental Foundation (see annex 10), the Government will monitor all environmental enhancement activities in the Campo and Mbam-Djerem National Parks and the implementation of the Indigenous Peoples Plan. 6. According to the EMP recommendations, the operator (COTCO) will establish three field-based monitoring units, among which one will be oriented towards monitoring marine activities, for pipeline and the off-shore facility construction. The PSMC will also equip itself with field units comprised of three (3) specialists, one in each of the three intervention areas identified: biophysical impacts, socio-economic impacts, and health management (the latter, only one person rotating from one field unit to the other). Field units will be in charge of the daily monitoring of pipeline construction impacts, and thus will develop two-way communication with the local administration and COTCO and, in particular, with COTCO's monitoring units. 7. The PSMC oversees the implementation of the components of the capacity building program: procurement and management of equipment and supplies, logistical support, training program, technical assistance. The coordination unit (ERS) provides the Government with the ways and means to implement its responsibilities for the mitigation of the environmental and social impacts of the pipeline. Project components 8. The components and sub-components of CAPECE are as follows. I. Strengthening the institutional, regulatory and legal framework I.1. Drafting, dissemination and enforcement of implementing regulations I.2. Long Term Vision study II. Strengthening of coordination capacities II.1. Central coordination at the Permanent Secretariat of PSMC, including IEC II.2. PSMC Field Units III. Strengthening of public intervention capacities III.1. Public health management III.2. Oil Spill Response Planning: Plan and implementation III.3. Support to decentralized administrations IV. Monitoring and Evaluation (M&E) IV.1. International Advisory Panel IV.2. Environmental Management, Performance and Capacity Monitoring Systems Project Component 1 e Development of an enabling regulatory framework Cost: US$ 1.3 million (including the repayment of the PPF), IDA funding: US$ 1.3 million 9. The country presently faces three difficult challenges in managing the environment in the petroleum sector: (i) the lack of implementation decrees - 10 - for most of the environmental legislation that has been passed recently, (ii) the lack of clear procedures for delivering permits and authorizations to the pipeline sponsors, and (iii) the lack of technical and financial resources in Government to carry out the program of environmental monitoring and promote poverty alleviation through the pipeline project. CAPECE's first component addresses the first two challenges by developing enabling regulations and procedures for environmental protection in the petroleum sector. It will also design a long term vision for environmental management in the petroleum sector in Cameroon. (a) Preparation and Publication of the required implementation decrees. Cost: US$ 0.15 million 10. The implementation of the 1996 environmental law (96/12) and other environmental protection-related laws that have been enacted as a follow up of the National Environmental Management Plan (NEMP), is hampered by the lack of appropriate implementing regulations. CAPECE will assist in the drafting and development of implementation decrees and strengthening enforcement capacity of all agencies involved in pipeline impact monitoring. The list of priority implementation decrees to be published is given below (Box 1). Box 1: High priority decrees to be prepared and published on environmental management in the petroleum sector in Cameroon (i) the implementation modalities of articles 17 e 19 of the National Environmental Framework Law concerning environmental impact assessment (ii) the list of substances for which spilling, immersion and incineration in marine waters are prohibited under Cameroonian legislation (iii) describing the measures taken to prevent and fight all marine pollution coming from vessels and facilities sited on or off shore (iv) describing the implementation modalities of the measures laid out in article 36 (2) of the environmental framework law, concerning pollution control (v) describing the conditions under which waste collection, sorting, storage, transport, recovery, recycling, or any other form of waste processing and recycling is performed, as well as the technical prescriptions for burying waste (vi) defining the conditions under which a pollutant can be emitted in air, water or on the ground, as well as norms and standards for such emissions in the natural environment, including inland waters (vii) describing the implementation modalities of the measures mentioned in article 58 of the Environmental Framework Law, related to chemical, toxic and/or hazardous substances, as well as the list of these toxic and/or hazardous substances (viii) describing the implementation modalities of the measures in article 61 related to noise and odor nuisances (ix) Regulation on radioactive substances (x) Regulatory text establishing the conditions under which individuals or organizations qualify for the controls and audits of gazetted industries, as well as laboratories qualified to determine the quantity and quality of effluents produced by the said industries (xi) Regulatory text determining the safety perimeter around gazetted industries (xii) Decree establishing the service modalities for the employment of civil - 11 - servants in the administration in charge of gazetted industries 11. The preparation of these implementing regulations will be done through close coordination among all agencies involved in environmental management and protection and legal instruments drafting at governmental level. Workshops will be organized to discuss the draft regulations at various stages to ensure large and adequate participation of stakeholders, administrative commitment, and future applicability and implementation of the proposed regulations. 12. A training program for staff involved in environmental monitoring and environmental law enforcement is being prepared in the framework of the Project Implementation Manual (PIM) and will be implemented during the course of the project. Dissemination and public information campaigns on the published regulations will be organized under the IEC component. Material related to environmental law requirements and enforcement will be disseminated among all interested stakeholders. 13. The completion of the legal component will require the recruitment and assistance of two international consultants, one specialized in environmental norms and standards, the other one specialized in environmental law. A team of national consultants which will benefit from the short-term support of an international environmental law expert will be necessary. Terms of references for this purpose have been prepared by PSMC and agreed by the Bank. A total of 6 person-months of international consultants will be needed. (b) Development of a Long Term Vision for environmental management of the petroleum sector. Cost: US$ 0.28 million. 14. The management of the environmental and social impacts of the petroleum sector can only be sustainable when the Government of Cameroon has decided on its optimal institutional setup and put it in place. A study, to be carried out in year 3 of the project, will help develop this long term vision. It will assess the present institutions and their performance, develop scenarios on alternative institutional setups, and provide the decision makers with the elements and information required to choose among the scenarios. The terms of reference for this study will be included in the PIM. It will require the input of 6 person-months of international consultants and 6 person-months of national consultants. Project Component 2 e Strengthening Coordination Capacity for Environmental Management Cost: US$ 3.1 million, IDA funding: US$ 0.9 million 15. The Coordination provided under the Pipeline Steering and Monitoring Committee will include: Technical coordination of the field interventions (health, biophysical and socio-economic impact management), Ensuring the liaison with the sponsors, Implementing an IEC strategy to keep all the stakeholders informed of the progress accomplished. 16. During the pipeline construction, the field units and the strengthened - 12 - central PSMC staff will include 16 key professionals and a reasonable number of support personnel. The staff will be placed at the disposal of the project by Government departments for the duration of the project. The terms of reference of the professional positions are being drafted by the central PSMC unit and will be included in the PIM. Positions will be advertised within the administration, and the selected candidates will be placed at the disposal of PSMC. The capacity of the whole staff in PSMC and the concerned administrations will be increased through specialized training, and logistical support will be provided. A training plan is being prepared and will be included in the PIM. Incentives are being developed to ensure that the trained staff put the training they receive to the best use for the project. In areas where national staff cannot be found, technical assistance by international consultants may be provided. 17. The increased capacity will be primarily located in the field, where the actual environmental impacts should be avoided or mitigated. A light coordinating capacity will also be built at the central PSMC level, in order to facilitate cross-sectoral cooperation. Also, at PSMC central level, capacity for Information, education and communication (IEC) on the themes developed by CAPECE will be enhanced, in coordination with the communication strategy of COTCO. (a) Central Coordination. Cost: US$ 2.3 million 18. The specific tasks related to the environmental activities will be caried out by a team of high-level specialists to be located in the Environment, Routing and Security section (ERS) of the Permanent Secretariat of PSMC. The specialists will cover the whole range of bio-physical, socio- economic and health management skills required for the implementation of the EMP (see box 2). They will report to the Permanent Secretary of PSMC and work closely with the Communication Division of SNH on the IEC sub-component. The cost of logistical support to the central coordinating unit over the project period is estimated at US$ 2.1 million. Box 2: General skills required in the central unit one biophysical specialist (environmentalist, fauna and flora, pollution management) one socio-economic specialist (population, local development, conflict resolution) one human health (public health management) specialist (b) Field Units. Cost: US$ 0.8 million 19. The three field units will have the same mix of skills as the central one, with a focus on natural resource management because of the nature of the environmental issues in the field (pollution expertise will be managed centrally and made available to the field units on request). The field units will manage their own logisitics and their activities will be coordinated by one of the technical specialists. The major responsibility of the field units will be to monitor COTCO's performance and to ensure that inspection and control activities that need to be performed by Government agencies are indeed conducted in a timely and technically/ scientifically acceptable manner. The cost of logistical support and local consultant services for the field units is estimated at US$ 0.7 million. - 13 - Box 3: General skills required in each field unit one biophysical specialist (environmentalist, fauna and flora) full-time. one socio-economic specialist (population, local development, conflict resolution) full-time. one human health (public health) specialist moving from one unit to the other as needed. The central unit will contract locally for specialized services when needed. The project makes provision for contracting for expert services in at least the following areas: Conducting a planning study of sites likely to be impacted by the construction of fixed facilities ("zones at risk"). Providing support to and monitoring the activities of the Environmental Foundation with respect to the implementation of the Indigenous Peoples Plan, Providing support and monitoring of the impact of pipeline construction on cultural heritage, with particular reference to archaeological impacts. Conducting a socio-economic study with beneficiary participation to assess the impacts of pipeline construction on project affected people. 20. The field units will be responsible for a small number of direct interventions, e.g. advising the consortium and their central unit on technical matters that need immediate attention or that are of minor importance. The bulk of the activities of the field units, though, will be to ensure proper liaison with the relevant local representatives of governmental agencies (MINEF, MMEWR, Ministry of Health, Ministry of Social Affairs, Transportation) to enforce the applicable standards, regulations and laws in their respective areas of competence and fulfill their responsibilities. This will include contacting the proper administrative unit, presenting requests in a proper format, following through to ensure a quick response to the query (administrative authorization, or technical control) and recording the results of the intervention in the Monitoring and Evaluation (M&E) system. 21. The field units will work closely with the local representatives of these governmental agencies that will be involved during the construction and the operation of the project. In case where local expertise is insufficient, specialists from central services of governmental agencies will intervene or private experts will be contracted. The field unit staff will be selected on the basis of their field experience and their ability to work with other staff from the decentralized and central technical services of GoC. The staffing of the field units will require a total of 13 specialists (3 teams of three people each + 1 backup team + 1 specialist in marine environment), adequate transport and communication equipment. Selection of staff for these positions will be subject to Bank approval. 22. The activities to be undertaken jointly between the Field Units and the the various agencies involved in environmental management and protection within the government of Cameroon are described hereafter. Biophysical environment. 23. The activities include: - monitoring atmospheric emissions; - monitoring wastewater management; - control of the hydraulic tests of the pipeline - 14 - - protection of surface and underground water resources; - protection of soils against erosion - protection of vegetation and fauna; - monitoring of the activities of the offsite environmental management programs; - monitoring marine outlets and assuring protection of the marine environment ; - assessing the biophysical risk. During the construction phase, the emphasis will be on administrative surveillance and permanent control of works; during operations, the emphasis will be on the control of the consequences on the environment. Socio-economic activities. 24. The activities include: - monitoring the implementation of the Compensation Plan, - assisting local authorities to manage the consequences of population movements related to the construction activities; - promoting the participation, as relevant, of Cameroonian Small and Medium Enterprises (SME); - monitoring the recruitment and training plans of COTCO - the control of the respect of the Right Of Way, and of the conditions of its utilization during the operational phase; - the protection of cultural, archaeological and religious sites, and the proper handling of archeological chance finds; - the monitoring of IPP activities. Health Management. 25. The activities of the health specialist coordinator in the field units (one specialist will cover the three field units on a rotating basis) will include: - monitoring the health status of citizens in the regions traversed by the pipeline - identifying the needs for interventions from the Ministry of Health to improve the health status and decrease any negative health impacts of the pipeline's construction and operation, - monitoring the implementation of COTCO's health-related interventions, including the community health management outreach, and the Indigenous Peoples Plan, - liaise with the biophysical and the socioeconomic experts to identify possible health issues (e.g. from poor drinking water quality) as early as possible, before negative impacts occur, - facilitate emergency interventions. This specialist will move from one field unit to the other and will not be attached to any particular field unit during the construction of the pipeline. (c) Training 26. Training will be provided to PSMC staff as well as Government institutions involved (see component 3) to a total of 30-40 professionals with short training sessions, mainly provided on-the-job in Cameroon. The training will be coordinated by the PSMC (Permanent Secretariat with the - 15 - assistance of the Human Resources Unit of SNH) with the training provided by COTCO for their field staff, and, if feasible, with that provided for the Chadian counterparts (CTNSC) to maximize synergies. A total budget of US$ 700,000 has been earmarked for training. 27. Training will be provided for the following specialities/skills: (i) environmental and petroleum specialists (environmental management concepts and methods, environmental assessment and review, environmental monitoring, design and implementation of environmental mitigating measures), (ii) health specialists (environmental health monitoring and mitigation), (iii) socio- economic specialists (surveys and monitoring of income, design and monitoring of compensation schemes), (iv) administrative officers (financial management, procurement, disbursement capacity), (v) magistrates and other employees of the judicial system to improve them to implement the new legal and regulatory framework on environment in the petroleum sector and (vi) all the specialists involved in the project (management, office technology, networking, English language, knowledge management). Training will be provided to the three field units as well as to the coordinating agency. As relevant, the audience in training sessions will incorporate contractors and other stakeholders to facilitate communication between these groups PSMC. 28. The priority will be on hands-on training in Cameroon. For training activities where no supply is available in Cameroon, a limited number of training sessions may be organized abroad. Participants to these sessions will commit themselves to remaining at the service of the project for at least 3 years after completion of the training. A full Training Plan will be developed within the Project Implementation Manual (PIM) before effectiveness. Box 9: List and schedule of training activities Environmental Management Information Systems (2000) Information on the EMP (project launching early 2000) Pollution inspectors (2000) Recycling of pilots (2001) Legal training (2000) Implementation of the new environmental protection decrees (2000) Implementation of the Government Oil Spill Plan (2001) Languages and Information Technology (2000 and 2001) Health training (2000-4) Training for IEC (2000-4) Conflict Resolution (2000) (d) Information, Education, and Communication 29. The IEC activities financed under the project will include: Outreach to foreign stakeholders, notably in OECD countries, Communication with the the project affected population, NGOs, the Consortium, the rest of the Government and the general public; Setting up and maintenance of an Internet site and a Knowledge Management system. 30. Logistical and training requirements for the IEC activities have been assessed and a budget of US$ 200,000 has been allocated to that sub- component. The health management sub-component has its own IEC activities - 16 - which are additional to the US$ 200,000. Project Component 3 e Strengthening Intervention Capacity for Environmental Management, Cost: US$ 5.8 million, IDA funding: US$ 2.7 million 31. This component of CAPECE supports the implementation of the EMP by supplying Cameroonian agencies with the equipment, the skills and the working environment that will allow them to perform their basic functions in a rapid response mode and efficiently. Key sub-components are: Health management, Government Oil Spill Response Planning and Implementation, Capacity Building in decentralized services of the Cameroonian Administration. (a) Health management. Cost: US$ 1.0 million. 32. During pipeline construction, COTCO will take responsibility for work- related health issues, while the Republic of Cameroon will need to deal with public health issues that might otherwise generate diseases or injuries associated with the pipeline project among the neighboring population. Principal concerns are the possible transmission of vector and sexually transmitted diseases (especially HIV/AIDS), traffic and other injuries, and potential project impacts on food supply and nutrition. 33. Although HIV/AIDS prevalence in Cameroon is low by African standards (less than 59-), the problem is significant and reaches major proportions in certain population subgroups (truckers 15%-, sex workers up to 20%), according to available statistics. Cameroon does not yet have a national HIV/AIDS strategy; the Bank intends to pursue this issue in the context of the forthcoming CAS discussions. The appropriate strategy in this situation is to focus on prevention and on changing the behavior of the groups at the highest risk. Construction workers, casual labor, truckers and suppliers, and camp followers will be the target groups for the HIV/AIDS prevention program under the CCPEP and CAPECE. The Consortium will regularly screen workers and conduct a program of health education and immunizations, including subsidized distribution of condoms. HIV/AIDS status will be monitored through an Epidemiological Information System established for workers and a Sentinel Surveillance System set up in the communities affected by work camps and fixed facilities. The Consortium will also implement a Community Health Outreach Program focusing on information, education, and selected preventive or curative actions. (See Annex 14 of the CCPEP PAD.) 34. To complement these activities carried out by the Consortium, under CAPECE, the Ministry of Health will strengthen its statistical data collection and processing, provide training to community health workers, and improve the delivery of community health services by providing vaccines, medications, and laboratory analysis services and supplies in 10 health districts located along the length of the pipeline route. Specifically with respect to HIV/AIDS, the Government will also contract with an experienced local NGO to deliver a program of information, education, and social marketing in the project area, under the supervision of the National AIDS Committee. The cost of this program over five years is estimated at US $140,000. - 17 - (b) Government Oil Spill Response Planning and Implementation Cost: US$ 0.7 million 35. The Government of Cameroon needs to undertake activities to complement the efforts of the Consortium in preventing and mitigating environmental and social impacts. In particular, the Consortium is preparing an Oil Spill Response Plan which will require coordinated actions on the part of the GoC. A study will design a national emergency response plan against accidental (terrestrial or marine) pollution by hydrocarbons. This study will be carried out by national (?) consultants with the full involvement of all potential stakeholders. 36. The terms of reference of this feasibility study have been drafted and will be annexed to the PIM. Copies are available in the project files. (c) Capacity Building in decentralized services of the Cameroonian Administration. Cost: US$ 4.1 million. 37. The relevant ministries, including those in charge of Environment, Mines, Urban Affairs and Transports, will be strengthened through training, networking and logistical support. The target for training and equipment financing is the field staff in the decentralized administrative units along the route of the pipeline. That staff will have a key role to play in providing directly the assistance needed to monitor and mitigate the environmental and social impacts, in a coordinated way, upon call from the field units of PSMC. Given the limited extent of practical and effective interministerial coordination in the field in Cameroon, much of the initial work of the field units of PSMC will be to set up a framework for such cooperation. 38. The agencies involved in the implementation of the project will benefit from the purchase, operation and maintenance of needed equipment. The equipment will include (i) office equipment (computers, modems, cellular phones, radios, fax machines), (ii) vehicles, and, (iii) specialized equipment for measuring and monitoring environmental impacts. The Permanent Secretariat of PSMC will retain the overall management and allocation of the equipment financed under this project. It will grant permission to the respective collaborating Government institutions to use the equipment on the basis of a pre-established monthly program, periodically inspect the stock and obtain periodic reports on the use, location and the state of the equipment funded under the project. Recurrent costs of the equipment will be funded by SNM for the duration of the project. 39. The cost of training for decentralized agency staff is included in the training cost given under component 2. Logistic support, including recurrent costs, for decentralized agency staff is estimated at US$ 335,000 over the life of the project. In addition, US$ 1.0 is allocated for local consultancy services such as private laboratory analyses and short interventions by qualified local experts in specific fields. Project Component 4 eMonitoring and evaluation Cost: US$ 0.8 million, IDA funding: US$ 0.8 million (a) Services of an International Advisory Panel - 18 - 40. The services from an International Advisory Panel (IAP) will be contracted and provided to PSMC/SP/ERS. The services will be expected in the following fields: (i) biophysical environment e generalist, (ii) biophysical environment emarine biology, (iii) socio-economy and (iv) environmental health. The composition of the IAP may vary over the years, according to the priority areas to be covered. The experts will be mobilized from a specialized company or university, with a minimum of one visit per year. The IAP will report to the PSMC/SP and the Committee itself as required. The Panel's annual reports will be supplied to the PSMC/SP and will be officially approved and thereafter made public. Copies will be made available to the Bank. The initial terms of reference (first year) and the experts' profiles will be included in the Project Implementation Manual. The cost of IAP intervention is US$ 408,000 over the five-year period. (b) Project Management and Control. Cost: US$ 0.4 million. 41. The project will fund the establishment, operation and maintenance of: A Monitoring and Evaluation system that will monitor the enabling activities planned in the CAPECE and evaluate if capacity is being built. It will also monitor all actions to be undertaken by the government for a sound environment management. An Environmental Information System (EMIS) which will compile the information gathered by the project and external partners on the state of the environment, health and livelihood indicators in the pipeline influence area, and disseminate it to the government as well as external stakeholders. Both systems are developed jointly and with the same approach in Chad and in Cameroon to ensure maximum compatibility. 42. EMIS will compile the information gathered by the project and external partners on the state of the environment, health and livelihood indicators in the pipeline influence area, and disseminate it to the government as well as external stakeholders. The design and development of EMIS will be finalized during the first year of CAPECE implementation. For that purpose, two consultants (a designer, likely an international consultant and a developer, likely a national consultant) will be hired. The system will be designed according to the following principles (i) sharing of technical data (measures of environmental indicators on biophysical, health and socio-economic topics) between stakeholders (government and COTCO mainly) through a common database maintained by COTCO or, if found appropriate by an external sub-contractor; (ii) organization of data will follow the structure of the EMP (biophysical, socio-economic and health themes subdivided into topics); (iii) production of detailed technical periodic reports listing all data on the environment impact of the Pipeline shared in the common database; (iv) communication of an environment report to all partners (NGOs, Government, International partners, donors...) through summary tables available on a web-site maintained by the government or, if found appropriate, by an external sub- contractor. 43. Monitoring and Evaluation system. The project M&E system will (i) enable a sound planning of activities to be undertaken for the three functions above and that fit within a comprehensive logical framework; (ii) set mutually agreed, realistic and clear objectives for each activity and measure gaps between actual and targeted values of these indicators; (iii) produce a variety of reports adapted, to the extent possible, to the needs of - 19 - the various stakeholders in order to present relevant information in a synthetic and ready to use manner. The design of the system, which is already underway, will be finalized during preparation of the project and described in the PIM. An important feature of the system will be its link with the financial and accounting system that will enable a comparison of financial data with technical outputs. Operation of the system will be under the responsibility of a monitoring and evaluation specialist whose terms of reference are to ensure that procedures for planning, monitoring and evaluation are implemented according the manual; and to produce each periodic report, in accordance with the procedures set-up for the monitoring and evaluation, identify activities where there are discrepancies between amount disbursed and physical output, identify reasons for such discrepancies, and eventually suggest solutions to the identified problems. 44. Annual technical and financial audits of project management will be conducted. A financial analysis will be conducted at mid-term to evaluate progress towards cost-effectiveness of the organizations in place. Note: This document contains tables that cannot be converted into text files. However, if you have MS Word or Word Viewer on your computer, you should be able to download the complete original version by going to - 20 -