INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Public Disclosure Copy Report No.: ISDSC2051 Date ISDS Prepared/Updated: 05-Mar-2013 Date ISDS Approved/Disclosed: 21-Mar-2013 I. BASIC INFORMATION A. Basic Project Data Country: Burkina Faso Project ID: P128768 Project Name: Burkina Faso Electricity access and energy supply (P128768) Task Team Fatouma Toure Ibrahima Wa Leader: Estimated 15-Apr-2013 Estimated 26-Sep-2013 Appraisal Date: Board Date: Managing Unit: AFTG2 Lending Specific Investment Loan Instrument: Sector(s): Thermal Power Generation (30%), Transmission and Distribution of Electricity (30%), Energy efficiency in Heat and Power (30%), Gener al energy sector (10%) Theme(s): Rural services and infrastructure (34%), Infrastructure services for private sector development (33%), Other urban development (33%) Financing (In USD Million) Public Disclosure Copy Total Project Cost: 50.00 Total Bank Financing: 50.00 Total Cofinancing: Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 0.00 International Development Association (IDA) 50.00 Total 50.00 Environmental B - Partial Assessment Category: Is this a No Repeater project? B. Project Objectives The project development objectives are to contribute to (i) improving the availability and reliability of electricity supply; (ii) increasing electricity access and (iii) enhancing rationale use of energy. C. Project Description The proposed project whose cost is estimated at about US$ 50 million will include the following components Public Disclosure Copy Component 1: Improve the reliability and availability of energy supply (US$ 16.4 million). This component will finance: The construction and supervisionof 2 turnkey 7.5 MW diesel power stations. The objective of this component is to help SONABEL meet the additional generation needs in certain target areas and serve as a back-up plant during the operation of the line to face planned or unplanned outages related to the unavailability of the interconnection lines. While the country’s future demand will be partly met through interconnection lines with neighboring countries such as Cote d’Ivoire, Ghana and Nigeria, Burkina Faso has to plan for a back-up generation given the delays recorded in the implementation of the interconnection projects and an increasing demand (of at least 10%). To mitigate such risk, SONABEL identified 5 cities located at more than 150 km of the main generation centers such as Ouaga and Bobo. These 5 cities, Ouahigouya, Dedougou, Fada N’gourma, Dori and Gaouacities, are considered “regional generation poles�. Component 2: Improve access to electricity in rural areas (US$ 21.8million). The component will finance grid based expansion in 41 communities through 33kV distribution lines. Those lines include the Bobo-Ouaga line which provides 33 kV on its overhead ground wire (cable de garde), the 33 kV distribution lines under construction from Pa and Kaya. Besides households, schools, clinics, local administration facilities, recreational centers and production units in these areas will be connected. The objective of the component is to expand electricity access to selected rural communities and improve leaving conditions of the populations and therefore help them develop revenue generating activities. Public Disclosure Copy Component 3: Improve energy efficiency in selected public buildings (US$ 8 million). This component would finance: (a) the strengthening of the institutional framework to support demand- side management and energy efficiency initiatives; (b) investment mainly in energy efficient equipment; and (c) information, education, and communication to promote the rational and efficient use of electricity. The approach, already initiated in the Power Sector Development Project which will close in July 2012, is to start showing results from interventions in the public administration buildings and gradually move into the commercial, industrial, and residential sectors in a learning-by-doing manner. Under the project, energy savings initiatives in selected public buildings have been estimated at US$ 2 million/year. Given the high energy cost in Burkina-Faso (one of the most expensive in the region), and the heavy reliance on fuel, energy saving initiatives become even more relevant. Subcomponent 3.1 - Institutional and Capacity Strengthening. To ensure the sustainability of these activities and enhance the actions already undertaken under the earlier project, the sub-component will finance (a) a demand side management national action plan; (b) training activities in the public and private sectors (architects, engineers and other energy experts in private companies); (c) development of databases from energy audits, energy consumption surveys, site visits, and analyses of electricity consumption bills, to eventually produce a building code and appliance standards; (d) acquisition of equipments to support these activities. Sub-component 3.2 – Investment in energy efficient equipments. The sub-component will finance Public Disclosure Copy energy audits in selected public buildings, analyses of electricity consumption bills, and procurement and the installation of energy efficient equipments such as capacity banks, 264 air conditioners, reflective films and energy saving lamps. Subcomponent 3.3 - Information, Education, and Communication. The objective of this subcomponent is to support all information awareness campaigns, workshops, training, and education on demand-side management and energy efficiency. Demonstrations and pilot tests would also be supported to bring about behavioral changes in electricity utilization in the public administration buildings, and demonstrate potential of energy savings to commercial and residential customers. Component 4: Institutional Strengthening and Capacity Development (US$ 3.8 million equivalent) This component will finance institutional strengthening o f public sector energy agencies (to support scaling up o f energy service expansion. It will also finance capacity development o f energy service providers as well as outreach and partnerships initiatives. Subcomponent 4.1: Institutional strengthening in the public sector (US$ 1.2 million). This subcomponent will finance training and equipment to strengthen the FDE, SONABEL, the General Directorat o f Energy (DGE) will be on: (i) strengthening planning, management, and impact assessment skills; and (ii) improving the legal, regulatory, and monitoring frameworks, including preparation of adequate taxation and pricing policies to support the development o f energy service expansion activities. Subcomponent 4.2: Capacity development of energy service providers (US$ 1.5 million). This subcomponent will finance capacity development o f energy services cooperatives, local communities, NGOs, and private sector small- and medium-size enterprises (SMEs). The subcomponent will also finance specific training activities to help remove barriers preventing the development and sustainable use o f renewable energy sources and technologies. Public Disclosure Copy Subcomponent 4.3: Outreach and partnerships (US$ 1.1 million). This subcomponent will finance outreach and partnerships initiatives at the national, regional, and global levels to attract financing for scaling up energy access expansion in Burkina Faso. In a country where only 3 percent o f the rural population has access to electricity, energy access expansion is a huge task that cannot be addressed by a single operation. The DGE needs to form alliances and partnerships with other institutions in the ministries o f economy and finance, health, and education to ensure that energy programs are effectively designed to reinforce the impacts o f social programs and to contribute to increase productivity. The subcomponent will also finance a sector syndication prospectus to help Burkina Faso present its energy access expansion program to major donors and to demonstrate its ability to effectively use financial resources available for energy sector development. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) Selected Urban and Rural areas in Burkina Faso. E. Borrowers Institutional Capacity for Safeguard Policies The borrower’s institutional capacity for safeguard policies is weak and needs to be strengthened. This conclusion has been reached on the basis of the difficulties encountered through the implementation of the two energy projects currently under implementation.A safeguard expert is being recruited to support the PIU responsible for those projects. For the current project, it is also expected that capacity building efforts to support project implementation will be done by (a) ensuring that SONABEL strengthen its internal safeguard arrangements and (b) enhancing capacity in DGE by financing the recruitment of safeguards staff. The project will also receive guidance from the Public Disclosure Copy Bank’s environmental and social specialists in the Project team. F. Environmental and Social Safeguards Specialists on the Team Alexandra C. Bezeredi (AFTSG) Africa Eshogba Olojoba (MNSEN) Paivi Koskinen-Lewis (AFTCS) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes This policy is triggered because of the potential BP 4.01 site-specific environmental and social impacts associated with construction of power stations and extension of distribution lines. As the location and works of the two plants and grid- based expansion have not been finalized, an Environmental and Social Management Framework (ESMF) will address the potential environmental and social impacts of the plants and the grid based expansion. The ESMF will be prepared, reviewed, approved, and disclosed in-country and at the Infoshop prior to appraisal. When location and types of specific projects will be known, detailed Environmental and Social Management Plans (ESMPs) will be prepared during project implementation. In Public Disclosure Copy addition, the borrower will prepare two ESMPs for the power plants described in Component 1 of the project. These will be reviewed, consulted upon and disclosed before appraisal. Natural Habitats OP/BP 4.04 TBD The project is not expected to affect natural habitats, but this will be confirmed during appraisal and reflected, as necessary, in the ESMF. Forests OP/BP 4.36 No The project will not affect or involve forest resources. Pest Management OP 4.09 No The project will not require the use of pest management techniques/resources. Physical Cultural Resources OP/ TBD The project is not likely to affect or be BP 4.11 implemented near physical cultural resources, including sacred sites or cemeteries, but this will be confirmed during appraisal. The ESMF will include “chance find� procedures. Indigenous Peoples OP/BP 4.10 No There are no Indigenous Peoples in the project area. Public Disclosure Copy Involuntary Resettlement OP/BP Yes The power plants will be built within the 4.12 footprint of existing power facilities on land which has been previously appropriated by SONABEL and on which there is no encroachment. However, for component 2, since the selected communities are not yet known and the extent of the distribution and whether it would involve land-take or restriction of access to sources of livelihood or to resources, a Resettlement Policy Framework (RPF) will be prepared and disclosed in-country and at the Infoshop prior to appraisal. When location of specific projects will be known, detailed RAPs will be prepared. In addition, the borrower will prepare RAPs, as necessary, for the power plants described in Component 1 of the project. These will be reviewed, consulted upon and disclosed before appraisal. Safety of Dams OP/BP 4.37 No N/A Projects on International No N/A Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No N/A 7.60 III. SAFEGUARD PREPARATION PLAN Public Disclosure Copy A. Tentative target date for preparing the PAD Stage ISDS: 28-Feb-2013 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS: Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timingshould be specified in the PAD-stage ISDS: The ESMF and the RPF will be disclosed in - country and at the Bank Infoshop prior to appraisal. In addition, ESMPs and/or RAPs for the electricity distribution Component (2) will also be reviewed, consulted upon, and disclosed before appraisal; measures to ensure their compliance with Bank policies will be included in these documents, as necessary. All of this should be ready by February 28, 2013. IV. APPROVALS Task Team Leader: Name: Fatouma Toure Ibrahima Wa Approved By: Regional Safeguards Name: Alexandra C. Bezeredi (RSA) Date: 21-Mar-2013 Coordinator: 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. Sector Manager: Name: Meike van Ginneken (SM) Date: 17-Dec-2012 Public Disclosure Copy Public Disclosure Copy