FEDERAL REPUBLIC OF NIGERIA WORLD BANK PROGRAM-FOR-RESULTS FINANCING NIGERIA DISTRIBUTION SECTOR RECOVERY PROGRAM (DISREP) DRAFT REPORT ENVIRONMENT AND SOCIAL SYSTEMS ASSESSMENT (ESSA) OCTOBER 2020 TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................................................... 4 SECTION I: BACKGROUND AND SCOPE ............................................................................................ 14 1.1: Program Description ........................................................................................................................ 14 1.2: Program Boundaries and Activities ................................................................................................. 16 1.3 Scope of the Environmental and Social Management System Assessment (ESSA) .................. 20 1.4 Approach of ESSA ...................................................................................................................... 21 SECTION II: STAKEHOLDER CONSULTATION ................................................................................. 23 SECTION III: DESCRIPTION OF EXPECTED PROGRAM ENVIRONMENTAL AND SOCIAL EFFECTS .................................................................................................................................................... 26 3.1 Overview of Program Risks and Benefits.......................................................................................... 26 3.2 Expected Environmental Benefits ............................................................................................... 26 3.3 Expected Environmental Risks ................................................................................................... 27 3.4 Expected Social Benefits ............................................................................................................ 28 3.5 Expected Social Risks ................................................................................................................. 30 SECTION IV: OVERVIEW OF RELEVANT BORROWER’S ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEMS ..................................................................................................................... 32 4.1 Description of Government Policy and Legal Framework ......................................................... 32 4.1.1 Environmental Policy, Regulatory and Institutional Frameworks ...................................... 32 Description of Environmental Institutional Framework ..................................................................... 37 Federal Ministry of Environment ........................................................................................................ 37 The National Environmental Standards and Regulations Enforcement Agency (NESREA) ............. 37 4.1.2 Social Policy, Regulatory and Institutional Frameworks .................................................... 38 Grievance Redress Mechanism in Nigeria .............................................................................................. 42 4.1.3 State Level Environmental Policy, Regulatory and Institutional Frameworks ................... 43 5.2 Grievance Redress Mechanisms of NERC ................................................................................. 45 4.3 Environmental and Social Systems of the DISCOs .................................................................... 48 SECTION V: ASSESSMENT OF BORROWER’S ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEMS ..................................................................................................................... 49 5.1 Summary of Systems Assessment ............................................................................................... 49 SECTION VI: RECOMMENDATIONS AND ACTIONS ........................................................................ 60 6.1 Environmental and Social Summary and Recommendations ..................................................... 60 SECTION VII. SUPPORTING ANNEXES AND REFERENCE DOCUMENTS .................................... 65 Annex 1: Applicability of Core Environmental and Social Principles (CP) to Nigeria Distribution Sector Recovery Program (DISREP) Disbursement Linked Indicators (DLIs) ...................................... 65 Annex 2: Preliminary Risk Matrix .......................................................................................................... 73 Annex 3: Information and Documents expected from DISCOs to inform the preparation of ESSA ..... 76 Annex 4: Preliminary Brief and Questions for consultation with 11 DISCOS ....................................... 77 Annex 5: Nigeria Distribution Sector Recovery P for R Consultation Notes ......................................... 78 Annex 6: Online Virtual Meeting via Microsoft Teams with TCN, NERC and BPE of Nigeria Distribution Sector Recovery PforR. ...................................................................................................... 93 Annex 7: List of Participants During the Consultation with DISCOS between 14 and 18 of September 2020 ........................................................................................................................................................ 94 Annex 8: Details of Environmental & Social Benefits and Risks Associated with Each Result Area and DLIs ........................................................................................................................................................ 97 Annex 9: Environmental and Social Systems of the DISCOs and the Assessment of their Strengths and Weaknesses: .......................................................................................................................................... 104 1 LIST OF ACRONYMS AEDC Abuja Electricity Distribution Company AEDC Abuja Electricity Distribution Company ATC&C Aggregate Technical Commercial and Collection AU African Union BEDC Benin Electricity Distribution Company BPE Bureau of Public Enterprises CBN Central Bank of Nigeria CBO Community Based organization CCU Customer Complaints Unit CCU Customer complaints Unit CEDAW Conventions on the Elimination of all forms of Discrimination against Women CEO Chief Executive Officer COVID-19 Coronavirus Disease-19 CP Core Principles CRA Child Right Act CRM Customer Relationship Manager DISCO Distribution Company DISCOs Distribution Companies DISREP Distribution Sector Recovery Program DLI Disbursement Linked Indicators DT Distribution Transformers E&S Environment and Social EEDC Engu Electricity Distribution Company EIA Environmental Impact Assessment EKEDC Eko Electricity Distribution Company EMS Environmental Management System ES Environmental Systems ESCP Environmental and Social Commitment Plan ESIA Environmental and Social Systems Assessment ESMF Environmental and Social Management Framework ESSA Environmental and Social Systems Assessment FCT Federal Capital Territory FMEnv Federal Ministry of Environment GBV Gender Based Violence GenCos Generation Companies GHG Greenhouse Gas GoN Government of Nigeria GRM Grievance Redress Mechanism GW Giga Watts HR Human Resources HR Human Resources HSE Health Safety and Environment IBEDC Ibadan Electricity Distribution Company IE Ikeja Electric JED Jos Electricity Distribution 2 JED Jos Electricity Distribution Company KDEDCO Kaduna Electricity Distribution Company KEDC Kano Electricity Distribution Company LARF Land Acquisition and Resettlement Framework LMP Labour Management Plan MDA Ministries Department and Agency MIS Management Information System MoF Ministry of Finance MVA Mega-volt amperes NBET Nigeria Bulk Electricity Trading Company NEMSF Nigerian Electricity Management Stabilization Facility NERC Nigeria Electricity Regulation Commission NESREA National Environmental Standards, Regulation and Enforcement NFP National Forestry Policy NGO Non-Government Organization NHFC National Housing Facilitation Council NPC National Pension Commission NUEE National Union of Electricity Employees OHS Organizational Health and Safety PAP Program Action Plan PDO Program Development Objectives PforR Program for Results PHEDC Port Harcourt Electricity Distribution company PIP Performance Improvement Plans PPA Power Purchase Agreement PSRP Power Sector Recovery Program PT Power Transformers PWD People With Disabilities RAP Resettlement Action Plan REDD+ Reducing Emission Deforestation and Degradation plus SDG Sustainable Development Goals SEA Sexual Exploitation and Abuse SEF Stakeholder Engagement Framework SEP Stakeholder Engagement Plan SH Sexual Harassment TCN Transmission Company of Nigeria TSA Treasury Single Account UN United Nations UNCED United Nations Conference on Environment and Development VC Vesting Contracts YEDC Yola Electricity Distribution company 3 EXECUTIVE SUMMARY 1. The World Bank is proposing to support the Nigeria power sector distribution companies (DISCOs), through the Government of Nigeria (GoN), with a Performance-for-Results (PforR) instrument referred to as Nigeria Distribution Sector Recovery Program (DISREP) (hereafter, the Program). The Program aims to address the binding constraints for improving the performance of the electricity distribution sector to attract private financing in the sector and is consistent with the “Maximizing Finance for Development� approach. The Program is part of the Programmatic Approach of the World Bank Group to address a variety of the power sector issues. The Program, in parallel with Power Sector Recovery Program (PSRP) PforR, represents a holistic approach to support the recovery of the Nigerian power sector. The Program Development Objective (PDO) is to improve financial and technical performance of the electricity distribution companies. 2. The Program will be limited to only the distribution sector elements of the government Power Sector Recovery Program (PSRP), approved by the Federal Executive Council of the Federation in February 2018, and within the parameters of the NERC approved Performance Improvement Plans (PIP) for each DISCO. The program will focus on the improvements of the distribution sector necessary to absorb a total of 7 GW of available generation (up from current levels of around 4 GW). To improve sustainable access and reliability of power in Nigeria, the Program will contribute to three Result Areas and will achieve seven Disbursement Linked Indicators (DLIs). 3. The Bureau of Public Enterprises (BPE) will serve as the implementing Agency of the Program. The BPE will receive loan from World Bank, through the Federal Ministry of Finance, into to their Treasury Single Account (TSA) at the Central Bank of Nigeria (CBN), and then on-lend to the eleven DISCOs in the form of shareholder loans. The terms of the shareholder loans, including their tenures, are to be agreed between the BPE, DISCOs and the MoF. Specific loan amounts to be allocated to each DISCO will be defined by individual investment requirements of each DISCO, based the individual PIPs approved by NERC. An initial advance of 25% is needed to provide required resources to DISCOs to start the implementation of the PIPs. The disbursement will be made followed by subsequent disbursements to the BPE-TSA account every six months after the assessment of the agreed PforR DLIs. 4. The three Results Areas of the PforR are detailed as follows: (a) Results Area 1- Improved DISCO performance: This Result Area will focus on implementation of key PIP components in order to improve quality of service provided to customers, reduce aggregate technical, commercial and collection (ATC&C) losses in supply, regularize customers and increase connections (leading to increased access and load growth), and improve the ability to monitor and control network performance, and collection processes. ATC&C losses averages over 40%, across all the DISCOs. Through these investments, DISREP will support the increased electricity access, improved electricity service, improved network economics, and reduced GHG emissions per kWh supplied. Result Area 1 covers four DLI’s as follows: 4 (i) DLI1- Reduction in DISCOs’ metering gap: DLI1 will be triggered by the installation of meters at currently unmetered and new customers’ residences and the resulting reduction in the DISCOs, metering gap, as defined in their PIPs. The disbursement against DLI1 will be aligned with the metering gaps defined in DISCOs individual metering plans that have been developed and submitted to NERC. Achievement of DLI1 will be monitored and verified by BPE with support of their IVA. (ii) DLI 2 – Number of new connections by DISCOs: DLI 2 will be triggered by the connection of new customers to the DISCO distribution grid. DISCOs will provide electricity access through new low voltage feeders and medium voltage lines, which do not involve permanent land acquisition or rights of way, and new connections to existing feeders. DISCOs are also expected to consider increasing access through off-grid and mini-grid solutions where appropriate, including through renewable powered stand-alone and mini-grid systems, which can be constructed by mini-grid developers and connected to the distribution network. The disbursement against DLI2 will be aligned with the customer connection targets in DISCOs’ PIPs. Achievement of DLI2 will be monitored and verified by BPE with support of their IVA. (iii)DLI – Kilometres of medium voltage (MV) distribution lines rehabilitated by DISCOs: DLI3 will be triggered by the rehabilitation of medium voltage (11kV) lines across the distribution network. The disbursement against DLI#3 will be aligned with the DISCOs’ line rehabilitation plans as outlined in their PIPs. Achievement of DLI3 will be monitored and verified by BPE with support of their IVA. (iv) DLI4 – Increased collection efficiency by DISCOs: DLI4 will be triggered based on the revenue collected by DISCOs relative to power billed. Collection efficiency is a broad metric that captures multiple areas of required improvement by DISCOs including customer satisfaction, DISCO billing processes, revenue protection, theft management, etc. The disbursement against DLI4 will be aligned with the DISCOs’ planned improvements in collection efficiency as outlined in their PIPs. Achievement of DLI4 will be monitored and verified by BPE with support of their IVA. (b) Results Area 2- Enabling diversification of commercial options for DISCOs to supply their demand: This Result Area will focus on rehabilitating poor performing power transformers (PT) and distribution transformers (DT) which are limiting the ability of DISCOs to handle sufficient power supply to meet customer demand while at the same time limiting DISCOs potential to access new commercial supply options such as purchasing power directly from GENCOs or from embedded generators, such as decentralised renewables. (i) DLI5 – Reduction in transformer technical losses in existing distribution networks. DLI5 will be triggered by the rehabilitation of power transformers (PT) and distribution transformers (DT) within the distribution grids. DISCOs’ PIPs 5 include information on poor performing transformers along with details on the required rehabilitation and upgrade actions. The disbursement against DLI5 will be aligned with the DISCOs’ transformer rehabilitation plans as outlined in their PIPs. Achievement of DLI5 will be monitored and verified by BPE with support of their IVA. (c) Results Area 3- Strengthened governance and transparency: Results Area 3 will address corporate governance and transparency in the operation of the distribution companies. Following the best practice of corporate governance engenders the trust of investors and debtors in the distribution subsector, allowing the DISCOs to be viewed as solid and credible partners both inside and outside Nigeria. Strengthening corporate governance is essential for the DISCOs to be able to raise new capital for investment in the network improvement in line PIP guidelines. (i) DLI6 – Compliance with NERC Code of Corporate Governance by DISCOs: DLI6 will be triggered based on the verification of ongoing compliance with the NERC Code of Corporate Governance. The disbursement against DLI6 will be based on an assessment of compliance undertaken by NERC on a 6-12 monthly basis. The outcomes of NERC’s verification of compliance will be reported to BPE for verification via the DISREP Technical Committee. (ii) DLI7 – Implementation of Management Information Systems (MIS) by DISCOs. DLI7 will be triggered through the incremental implementation of a MIS by DISCOs. NERC defines the key elements of the MIS as being a Commercial Management Systems (CMS), Enterprise Resource Planning (ERP), Geographic Information System (GIS), Incident Recording and Management Systems (IRMS), Supervisory Control and Data Acquisition System (SCADA), Revenue Protection Program (RPP), and Works Management Systems (WMS). The disbursement against DLI7 will be based on a monitoring and verification of MIS implementation and will be undertaken by BPE with support of their IVA. 5. The DISREP PforR program does not support any investments that are not detailed in the approved DISCOs PIPs. The Program will only support investments in infrastructure and assets that are and will remain wholly owned by the DISCOs, irrespective of changes in DISCO operations or ownership. The Program will equally exclude activities that do not meet World Bank policy on eligibility for PforR financing. Specifically, the borrower shall ensure that the Program excludes any activity—for example large scale construction works, construction of distribution sub-stations and construction of other distribution infrastructures—which will require right of ways or which, in the opinion of the World Bank, are likely to have significant adverse impacts that are sensitive, diverse or unprecedented on the environment and/or requires significant land acquisition / large resettlement of affected people or economic impact, as defined in the World Bank policy on PforR financing (September, 2020). The PforR operations in Result Area 1 will be limited to only rehabilitation of existing infrastructure or replacement of equipment/infrastructures in already existing distribution infrastructure. This may involve additional land area in the form of additional working space during the rehabilitation of 6 distribution lines. It is expected that such land area will be reverted back to the owners/users after rehabilitation work. Increasing of electricity connection through grid or off-grid infrastructure may also involve minimal land acquisition without physical displacement. A resettlement action plan, in line with NERC regulation and World Bank guidelines will be prepared by DISCOs under the supervision of BPE to deal with compensation issues arising from this minor displacement. In line with DISREP PforR activities outlined above, the exclusion of the enumerated activities will not impact the achievements of the results under the Program. 6. The Environmental and Social Systems Assessment (ESSA) examines the extent to which the Federal, State Government’s and DISCOs existing environmental and social management systems: operates within, an adequate legal and regulatory framework to guide environmental and social impact assessments, mitigation, management and monitoring at the PforR Program level; and incorporate recognized elements of good practice in environmental and social assessment and management. The ESSA thereafter defines measures to strengthen the system and recommend measures that will be integrated into the overall Program. The ESSA is undertaken to ensure consistency with six core principles and key planning elements of PforR ESSA. 7. In line with the six core principles and initial screening, the relevant risks within the proposed Result Areas under the PforR cover environmental and social issues and include: a. Air, noise, water, soil and groundwater pollution and waste management due to rehabilitation works and possibly from polychlorinated biphenyls (PCB) contaminated oil, biodiversity loss as a result of poor vegetation management during the rehabilitation of feeder lines and other rehabilitation activities along the network, e-waste generation due to installation/replacement of meters and implementation of MIS system. b. Occupational Health and Safety (OHS) issues both COVID-19 and non-COVID-19 issues during rehabilitation of distribution infrastructure, new connections and installation of meters. c. Waste management and GHG emissions as a result of rehabilitation of power distribution networks. d. Labour and occupational health and safety issues due to rehabilitation of distribution infrastructure, installation of meters, increasing of new connections under the program. e. Risk of exclusion of vulnerable and marginalized individuals / groups/disability exclusion, etc. f. Possibility of gender based violence (GBV) as the Program envisions a range of rehabilitation projects, and these are activities that can increases GBV and risks of SEA and SH due to changes in labour patterns and income, creation of new hot spots for vulnerability, and changing community dynamics. 8. Specific environmental and social risks have been assessed and deemed to be moderate. The risks were assessed as moderate because the impacts resulting from the activities are temporary, minor, and not in environmental and socially sensitive areas and can be mitigated through normal measures for minor rehabilitation/ construction activities. Although adverse environmental and social impacts are limited, some weaknesses in the borrower’s system and possible lack of capacity to address the environmental and social impacts may limit the PforR’s ability to achieve its environmental and social operational objectives. 7 9. The ESSA was prepared through a combination of reviews of existing program materials and available technical literature, interviews and consultations with various stakeholders. An environmental and social risk screening was undertaken at the concept stage. In the assessment of the DISCOs and given the limitations imposed by COVID-19 pandemic, the team visited some of the DISCOs prior to covid 19 pandemic, had consultations virtually with the relevant managers and officers in the DISCOs, and reviewed the relevant E&S documents and other institutional documents submitted by the DISCOs in line with the request of the World Bank team. The ESSA process was informed by the Bank Guidance on PforR Environmental and Social System Assessment (Sept, 2020). 10. Consultations were carried out prior to the development of the ESSA despite the COVID-19 pandemic. The consultations, which were conducted online via Microsoft Teams, were carried out in line with the World Bank’s guideline on consultation during the pandemic. Those consulted include the management of each of the eleven DISCOs in Nigeria, representatives of relevant Ministries in States within their jurisdiction, and with the management of BPE, NERC, and TCN. Consultations with the DISCOs and representatives from relevant government ministries in the States was held between September 14-18, 2020 while consultations with BPE, NERC and TCN was carried out on September 22, 2020. Prior to the consultations, the DISCOs were presented with the consultation plan which included a list of documents required for the assessment and a preliminary brief and questions that guided the discussion. During the consultations with the DISCOs, the details of the DISREP PforR Program were presented to them. The representatives of the DISCOs also responded to the questions presented to them by the World Bank team. The DISCOs were thereafter requested to respond to the questions in writing and forward them to the World Bank team. Further consultation will be carried out with these and additional stakeholders. 11. Some analysis was carried out to determine the rage of environmental and social risks and benefits that are associated with the PforR program based on each of the DLIs. The PforR program will significantly deliver some environmental benefits especially providing climate co-benefits because of reduction in the use of fossil fuels (petrol and gas) by households and business and also due to reduction in the consumption of electricity propelled by efficiency in metering. For example, regarding DLI1, there could be climate co-benefits due to reductions in the per/kWh GHG emissions associated with the network as a result of reduced use of fossil fuels as consumption of power decreases following the Program. The achievement of this DLI aligns with the Multilateral Development Banks’ (MDB) list of eligible mitigation activities under Category 1.3: New information and communication technology, smart grid and mini grid, as well as Category 2.1: Retrofit of transmission lines or substations and/or distribution systems to reduce energy use and/or technical losses including improving grid stability or reliability. 12. The Program is expected to have direct and indirect risks and these risks are deemed to be moderate. For example, activities for the achievement of DLI 2 (Number of new connections by DISCOs) and DLI 3 (Kilometers of medium voltage (MV) distribution lines rehabilitated by DISCOs) could lead to increased noise levels and air pollution from heavy duty vehicles and machines that will be used in the operation, wastes during rehabilitation activities, possibility of traffic obstruction, impact on workers, community and public health and safety, 8 electrocution and fire incidents. Achievement of DLI 5 could also lead to pollution and health problems due to possible exposure of workers to polychlorinated biphenyls (PCB) contaminated oil. Also, installation of new feeders into underserved areas near the existing distribution infrastructure may lead to cutting down of Trees/vegetation. 13. The social benefits of the Program will be significant when considered within the perspective of the current situation of power and in Nigeria and also given the huge benefits from a stable and reliable power sector. With the evidence that welfare of the poor improves significantly with electricity access, and given the high poverty rate in Nigeria (poverty head count rate is 40.1% translating to 82.9 million Nigerians) which has been exacerbated by COVID-19 pandemic, improving access to electricity thorough new connections and enhancing distribution efficiency, as envisage in Nigeria DISREP PforR, will facilitate poverty reduction and economic growth. It will also impact education and health. In fact, achievement of DLI 1 will eliminate the practice of issuing estimated bills to customers and which could lead to excessive billing, loss of income and poverty. Effective metering will help to reduce technical and non-technical losses thus enhancing distribution efficiency. Increased distribution efficiency and reliability will increase the number of hours that electricity is available and thus increase opportunities for children to study thereby enhancing educational outcomes. It will also be beneficial to women as studies have shown that profits are higher for women using electricity for enterprises. 14. Also, moderate social risks are associated with the Program and the activities under the DISREP PforR. Power sector workers (especially technical workers) and public safety may be affected during the installation of meters, installation of new feeders and connection of new customers, rehabilitation of distribution lines and Power Transformer (PT) and Distribution Transformer (DT) given the nature of electricity and dangers associated with it. Workers may also be exposed to hazardous substances especially PCB contaminated oil during the rehabilitation of PT and DT and distribution lines. Also, there could be SEA and SH during the distribution and installation of meters in homes and offices, extension of power to underserved areas and localities, and rehabilitation of distribution lines especially giving the influx of power sector workers into the communities and localities. In addition, although it is expected that all customers will be connected to a meter, there could be discrimination against vulnerable people and elite capture in the distribution and installation of meters and in connection of new lines especially if meters are in short supply. Besides, there could be bias— for example, gender, ethnic, religious bias or segregation—due to social stratification in choosing locations where distribution networks will be rehabilitated given that resources may be limited. The DISCOs may choose locations where customers use more electricity and pay more money and neglect areas where poor and vulnerable people reside as the returns from those areas will be less. Indirectly, there could be conflicts between customers and DISCOs as some unscrupulous customers may quarrel with DISCO staff to prevent disconnection after electricity theft or tampering with meters, especially non-smart meters. 15. Following the identification of environment and social risks, the E&S management system in place to manage the identified risks were assessed. The assessment was done in line with the following criteria: strengths of the system, or where it functions effectively and efficiently and is consistent with Bank Policy and Directive for Program-for-Results Financing; 9 inconsistencies and gaps between the principles espoused in Bank Policy and Directive for Program-for-Results Financing and capacity constraints; and actions to strengthen the existing system. 16. Based on the review of the system, in line with the six core principles espoused in the Bank Policy and Directive for Program-for-Results Financing, we found that the six core principles will be applicable to the program. The findings of the assessment of government and DISCO’s systems in line with the core principles are summarized as follows: 17. Core Principle 1 (General Principle of Environmental and Social Management): Regarding government systems, the national policies, regulations and other legislation for environmental management are well defined and consistent with Core Principle 1 of the Bank Policy and Directive, while the Power Sector Reform Act 2005 and accompanying regulations are in place to guide effective E&S management. However, capacity of the federal and state ministries of environment to monitor and enforce EIA requirements is weak. Regarding the DISCOs, most of the DISCOs have HSE and OHS procedures and manuals that guide environmental and social management. However, most of the DISCOs have weak environmental and social management procedures as the HSE and OHS manuals and procedures have gaps and are often focused on health and safety, even as the capacity for management of environmental issues is weak. 18. Core Principle 2 (Natural Habitats and Physical Cultural Resources): Regarding government system, and besides the EIA systems mentioned earlier, the federal and state governments also have introduced a number of forest policies, programs and instruments to facilitate the management of forests and other natural habitats. However, some of them are outdated and deforestation and forest degradation is on the increase. Nigeria has a lot of biodiversity sites including sacred groves as detailed in the National Biodiversity Strategy, however, it is not envisaged that the program will have any adverse impact on biodiversity. Regarding the DISCOs, many of them work with the Federal and State forest departments and commissions in vegetation management along electricity lines to ensure proper vegetation management. However, many of the DISCOs do not have or have weak vegetation management procedure. 19. Core Principle 3 (Public and Worker Safety and Workers Right): The legal/regulatory system includes provisions for protecting worker, community and public safety. Some legislation to ensure worker protection includes the Labour Act of 2004, the Trade Union Amended Act of 2005, and the Employees Compensation Act of 2010. DISCOs have HR policies that guide recruitment, staff promotion, compensation, and discipline etc. Some have guidelines and procedures for handling of hazardous chemicals especially PCB contaminated oil. Also electricity workers in Nigeria have two unions (National Union of Electricity Employees (NUEE) and Senior Staff Association of Electricity and Allied Companies, that fight to protect the rights of workers. However, although they have HR policies, some DISCOs’ HR policies lack procedures in specific areas to facilitate worker security and performance, for example, in areas of GRM, welfare in terms of participation in trade union activities, etc. Also, emergency preparedness procedures are non-existent in some DISCOs while many have weak 10 plans and procedures for managing emergencies as some DISCOs do not have clear procedures for handling PCBs. 20. Core Principle 4 (Land Acquisition): Nigeria has the Land Use Act of 1978 which was modified in 1990. It is the legal basis of land acquisition. A Presidential Technical Committee on Land Reform (PTCLR) is working on issues regarding land reform in Nigeria due to weaknesses in the Act. Acquisition of Land and Access Rights for Electricity Projects Regulations, 2012, provides a robust legal and regulatory framework for the acquisition of land and access rights for electricity projects in Nigeria. Some of the DISCOs do not have procedures for land acquisition and did not indicate that they apply the 2012 regulation. However, there will be minimal land acquisition in the Program and the NERC 2012 regulation will guide it. 21. Core Principle 5 (Social Considerations - Indigenous Peoples and Vulnerable Groups): Chapter IV of the Nigerian Constitution contains a variety of fundamental rights set out in Sections 33 - 44. Most DISCOs have a procedure for consultation with their customers and the general public on electricity matters. However, many of the DISCOs do not have procedures for dealing with vulnerable people and PWDs regarding electricity issues to ensure that they are not treated with contempt and partiality. Also, most of the DISCOs do not have procedures or have inadequate procedures for handling SEA and SH which are part of gender constraints to access to electricity. 22. Core Principle 6 (Social Conflict): The program will be implemented in areas that could be considered as fragile areas in Nigeria, mainly in North East and North West. However, the federal and State presence is strong throughout the country with well-trained police and security forces who maintain the rule of law and also provides security against bandits, and armed insurgents. There is also a justice system with courts where people can seek redress. The federal government also has the public complaints commission where people can make complaints regarding administrative injustices. NERC has a regulation, Customer Complaints Handling: Standards and Procedure 2006, which guides all distribution Licensees in Nigeria in terms of resolving customer complaints. Most of the DISCOs have GRM mechanisms. Although, most of the DISCOs have some grievance redress mechanism and complaints procedure, some of the procedures are weak. Even a DISCO recommended only informal approach. There is disdain for DISCO officials by customers and the general public probably because of the erratic power supply and alleged billing of customers when they did not receive electricity. This perception often results in conflict when DISCOs want to disconnect customer electricity because of non-payment of bills or other issues. 23. The information from this analysis, identification of gaps and opportunities/actions, were used to inform the recommendations and Program Action Plan (PAP). 24. The recommendations are as follows: 25. BPE and NERC, in collaboration with the Federal Ministry of Environment, should develop a protocol/standard in line with WB and Nigeria requirements that will serve as E&S benchmark to guide DISCOs in updating their E&S instruments and systems. Each DISCO will take into 11 consideration annex 9 and the identified gaps / gap filling actions in updating their system in line with the protocol/standard that will be developed. 26. DISCOS should update, harmonize and strengthen their E&S instruments and systems in line with the benchmark of E&S for DISCOs. 27. BPE should conduct annual monitoring of progress and performance on environmental and social issues, especially regarding the compliance of the Program activities with the environmental and social standards and procedures. 28. DISCOs should provide on-site training/capacity building to electricity workers, contractors and laborers that will be involved in rehabilitation and upgrading of distribution lines and grid transformers and those that will be involved in expanding and setting up new connections so that they will be familiar with OHS issues at their workplace/site. 29. DISCOs in collaboration with BPE should work with the local authority in their sub-units to set up local level (through relevant traditional rulers/ institution, Ministry of Chieftaincy Affairs and LGA Chairmen) conflict resolution committee to address conflict related to the program. 30. DISCOs in collaboration with BPE should embark on community-based enlightenment campaign to strengthen citizen engagement through different channels, produce and distribute leaflets and brochures so as to create awareness and familiarize the citizens of the Program. 31. BPE and DISCOs should engage suitable Environmental and Social Risk Management Specialists (could be consultants) as part of the Program Implementation Team in a manner that will be satisfactory to the Bank. 32. The DISCOs in collaboration with BPE should institute a gender-based violence response committee to ensure that survivors can easily and freely report to immediately they experience any assault. 33. The program action plan is presented in Table 1ES below. The PAP will be part of the verification protocol by BPE and IVA. Table 1ES: Program Action Plan (PAP) for Environmental and Social Management Action Description Due Date Responsible Completion Actions to be include Party Measurement in PAD PAP / DISCOs IPAP Develop a protocol/standard Prior to signing BPE Document acceptable To be included in that will serve for on lending to the Bank containing PAD PAP benchmarking E&S system, agreement / E&S benchmarks for performance and M&E of shareholders DISCOs DISCOs (including but not loan agreement limited to OHS, community with each Health and safety, e-waste DISCO. and hazardous waste 12 management and disposal, SEA/SH, resettlement Build the capacities of the During Project BPE Records of trainings To be included as DISCOs in terms of Implementation part of action 5 of the environmental and social PAD PAP and safeguards of WB and DISCOs IPAPA Nigeria. Develop, update, harmonize During Program All DISCOs Copies of reviewed To be included as and strengthen E&S Implementation documents, part of Action 5 of instruments and systems in documented process of the PAD PAP and line with the benchmark of review (review DISCOs IPAP. E&S for DISCOs taking into committee list, consideration annex 9. minutes of meeting, or letters of appointment of Consultants, TOR used in engaging the consultant or review committee). Conduct annual monitoring of At the end of every BPE / IVA Monitoring report, To be included in the progress and performance on year Minutes of meeting verification protocol environmental and social during monitoring and DISCO’s IPAPs. issues, especially regarding exercise, pictures the compliance of the taken during Program activities with the monitoring. environmental and social standards and procedures Provide on-site During Project All DISCOs Submit Capacity To be included as training/capacity building to Implementation /Training plans part of item 5 of PAD electricity workers, /Modules, Lists of PAP and DISCOs contractors and labourers so participants, pictures IPAP they can be familiar with during training OHS issues at their program. workplace/site.1 Set up local level (through Prior to All DISCOs, List of committee To be included as relevant traditional rulers/ rehabilitation of LGA members, minutes of part of item 5 of PAD institution and LGA distribution lines / Chairmen, committee meetings, and DISCOs IPAP Chairmen) conflict resolution installation of Ministry of photos of inauguration committee to address conflict meters. Local of committee related to the program. Government members, attendance and list at committee Chieftaincy meetings. Affairs. Embark on community-based Prior to All DISCOs, Copies of radio and To be included as awareness-raising campaign commencement of BPE television jingles, part of item 5 of PAD and citizen engagement the rehabilitation copies of leaflets and PAP and DISCOs through different channels, works of the lines brochures, photos of IPAP produce and distribute leaflets town hall meetings 1 The program IPF/TA component include capacity building activities to strengthen the DISCOs to manage environmental and social risk 13 and brochures so as to create awareness and familiarize the citizens of the Program. Engage suitable Prior to program BPE, All Letters of appointment To be included as a Environmental and Social implementation / DISCOs of standalone action in Risk Management Specialists prior on lending to Consultants/Specialist the PAD PAP and at – one E&S per each DISCO. specific DISCOs s, TOR for DISCOs IPAP (as (Consultants) as part of the engagement of condition for signing Program Implementation consultant, CV of shareholders loan Team in a manner that will be consultant, Annual agreement. satisfactory to the Bank. reports of activities, and maintained throughout the life of the program Institute a gender-based During program BPE, All List of Committee To be included as violence response implementation s DISCOs Members, document part of item 5 of PAD Committee detailing the PAP and as part of operations of the DISCOs IPAP and at committee approved BPE level by top management. Prepare site specific E&S Prior to BPE, All Relevant safeguards To be included in the safeguards instruments commencement of DISCOs instruments. PAD PAP and as relevant to rehabilitation of civil works/ DISCOs IPAP meters, transformers, rehabilitation rehabilitation of lines etc. SECTION I: BACKGROUND AND SCOPE 1.1: Program Description 34. World Bank is proposing to support the Nigeria Power Sector Distribution companies (DISCOs), through the Government of Nigeria (GoN), with a Performance-for-Results (PforR) instrument referred to as Nigeria Distribution Sector Recovery Program (DISREP) (hereafter, the Program). The Program aims to address the binding constraints for improving the performance of the electricity distribution sector to attract private financing in the sector and is consistent with the “Maximizing Finance for Development� approach. The Program is part of the Programmatic Approach of the World Bank Group to address a variety of the power sector issues. The Program, in parallel with Power Sector Recovery Program (PSRP) PforR, represent a holistic approach to support the recovery of the Nigerian power sector. While the PSRP PforR focuses on improving the policy and regulatory environment, enforcing regulation and addressing tariff-related shortfalls, the proposed DISREP focusses on improving DISCOs operational performance and providing resources for infrastructure investment to improve operational efficiency and achieve financial sustainability of the sector. The Program Development Objective (PDO) of the PforR is to improve financial and technical performance of the electricity distribution companies. The PDO will be monitored through the following PDO level outcome indicators: a. Percentage of metered customers increases; b. Annual electricity billed increases; 14 c. Annual collection of billed electricity increases; d. Annual verification of DISCOs compliance with Corporate Code of Governance. 35. The DISREP operation is a hybrid one with a PforR component and IPF component. Relevant safeguard instruments, namely, an ESMF, SEP, ESRS, LMP, and ESCP have been prepared for the IPF component. 36. The PforR Program will be limited to only the distribution sector elements of the government Power Sector Recovery Program (PSRP), approved by the Federal Executive Council of the Federation in February 2018, and within the parameters of the NERC approved Performance Improvement Plans (PIP) for each DisCo. The program will focus on the improvements of the distribution sector necessary to absorb a total of 7 GW of available generation (up from current levels of around 4 GW). 37. To improve sustainable access and reliability of power in Nigeria, the Program will contribute to three Result Areas and will achieve seven Disbursement Linked Indicators (DLIs). The proposed Result Areas and DLIs and how they relate to the PSRP is shown in Table 1.1 below 38. The Bureau of Public Enterprises (BPE) will serve as the implementing Agency of the Program. The BPE will receive loan from World Bank, through the Federal Ministry of Finance, into to their Treasury Single Account (TSA) at the Central Bank of Nigeria (CBN) and then on-lend to the eleven DISCOs in the form of shareholder loans. The terms of the shareholder loans, including their tenures, are to be agreed between the BPE, DISCOs and the MoF. Specific loan amounts to be allocated to each DISCO will be defined by individual investment requirements of each DISCO, based the individual PIPs approved by NERC. An initial advance of 25% is needed to provide required resources to DISCOs to start the implementation of the PIPs. The disbursement will be made followed by subsequent disbursement to the BPE-TSA account every six months after the assessment of the agreed PforR DLIs. Table 1.1. DISREP Result Areas and DLIs and how they relate to the PSRP 15 PSRP PSRP Sub- PforR Areas Proposed DLIs Component Component DLI#1: Reduction in DISCOs’ metering gap Nigeria Distribution Sector Recovery Program DLI#2: Number of new Result Area 1: Improved connections by DISCOs DISCO operational performance DLI#3: Kilometres of medium II. voltage (MV) distribution lines Improved Operational rehabilitated by DISCOs DISCO /technical performance DLI#4: Increased collection interventions efficiency by DISCOs Results Area 2: DLI#5: Reduction in transformer Enabling diversification technical losses in existing of commercial options distribution networks for DISCOs to supply their demands DLI#6: Compliance with NERC Result Area 3: Code of Corporate Governance by III. Restore DISCOs Strengthened Governance proper sector governance and DLI#7: Implementation of interventions governance transparency Management Information Systems (MIS) by DISCOs 1.2: Program Boundaries and Activities 39. The three Results Areas of the PforR and summary of the DLIs are as follows: a. Results Area 1: Improved DISCO performance- This Result Area will focus on implementation of key PIP components in order to improve quality of service provided to customers, reduce aggregate technical, commercial and collection (ATC&C) losses in supply, regularize customers and increase connections (leading to increased access and load growth), and improve the ability to monitor and control network performance, and collection processes. ATC&C losses averages over 40%, across all the DISCOs. Through these investments, DISREP will support the increased electricity access, improved electricity service, improved network economics, and reduced GHG emissions per kWh supplied. Result Area 1 covers four DLI’s as follows: i. DLI1- Reduction in DISCOs’ metering gap: DLI1 be triggered on the installation of meters at currently unmetered and new customers and the resulting reduction in the DISCOs, metering gap, as defined in their PIPs. The disbursement against DLI1 will be aligned with the metering gaps defined in DISCOs individual metering plans 16 that have been developed and submitted to NERC. Achievement of DLI1 will be monitored and verified by BPE with support of their IVA. ii. DLI 2 – Number of new connections by DISCOs: DLI 2 will be triggered on the connection of new customers to the DISCO distribution grid. DISCOs will provide electricity access through new low voltage feeders and medium voltage lines, which do not involve permanent land acquisition or rights of way, and new connections to existing feeders. DISCOs are also expected to consider increasing access through off-grid (through investments in solar power) and mini-grid2 solutions where appropriate, including through renewable powered stand-alone and mini-grid systems, which can be constructed by mini-grid developers and connected to the distribution network. The disbursement against DLI2 will be aligned with the customer connection targets in DISCOs’ PIPs. Achievement of DLI2 will be monitored and verified by BPE with support of their IVA. iii. DLI3 – Kilometres of medium voltage (MV) distribution lines rehabilitated by DISCOs: DLI3 will be triggered on the rehabilitation of medium voltage (11kV) lines across the distribution network. The disbursement against DLI#3 will be aligned with the DISCOs’ line rehabilitation plans as outlined in their PIPs. Achievement of DLI3 will be monitored and verified by BPE with support of their IVA. iv. DLI4 – Increased collection efficiency by DISCOs: DLI4 will be triggered based on the revenue collected by DISCOs relative to power billed. Collection efficiency is a broad metric that captures multiple areas of required improvement by DISCOs including customer satisfaction, DISCO billing processes, revenue protection, theft management, etc. The disbursement against DLI4 will be aligned with the DISCOs’ planned improvements in collection efficiency as outlined in their PIPs. Achievement of DLI4 will be monitored and verified by BPE with support of their IVA. b. Results Area 2: Enabling diversification of commercial options for DISCOs to supply their demand- This Result Area will focus on rehabilitating poor performing power transformers (PT) and distribution transformers (DT) which are limiting the ability of DISCOs to handle sufficient power supply to meet customer demand while at the same time limiting DISCOs potential to access new commercial supply options such as purchasing power directly from GENCOs or from embedded generators, such as decentralized renewables. i. DLI5 – Reduction in transformer technical losses in existing distribution networks. DLI5 will be triggered on the rehabilitation of power transformers (PT) and distribution transformers (DT) within the distribution grids. DISCOs’ PIPs include information on poor performing transformers along with details on the required rehabilitation and upgrade actions. The disbursement against DLI5 will be aligned with the DISCOs’ transformer rehabilitation plans as outlined in their PIPs. Achievement of DLI5 will be monitored and verified by BPE with support of their IVA. 2 Mini-grid solutions will be established by private developers. DISCOs will not develop mini-grid solutions directly but may consider increasing access through the solutions where appropriate and convenient . 17 c. Results Area 3: Strengthened governance and transparency- Results Area 3 will address corporate governance and transparency in the operation of the distribution companies. Following the best practice of corporate governance engenders the trust of investors and debtors in the distribution subsector, allowing the DISCOs to be viewed as solid and credible partners both inside and outside Nigeria. Strengthening corporate governance is essential for the DISCOs to be able to raise new capital for investment in the network improvement in line PIP guidelines. i. DLI6 – Compliance with NERC Code of Corporate Governance by DISCOs: DLI6 will be triggered based on the verification of ongoing compliance with the NERC Code of Corporate Governance. The disbursement against DLI6 will be based on an assessment of compliance undertaken by NERC on a 6-12 monthly basis. The outcomes of NERC’s verification of compliance will be reported to BPE for verification via the DISREP Technical Committee. ii. DLI7 – Implementation of Management Information Systems (MIS) by DISCOs. DLI7 will be triggered through the incremental implementation of a MIS by DISCOs. NERC defines the key elements of the MIS as being a Commercial Management Systems (CMS), Enterprise Resource Planning (ERP), Geographic Information System (GIS), Incident Recording and Management Systems (IRMS), Supervisory Control and Data Acquisition System (SCADA), Revenue Protection Program (RPP), and Works Management Systems (WMS). The disbursement against DLI7 will be based on a monitoring and verification of MIS implementation and will be undertaken by BPE with support of their IVA. 40. The typology of investments that will be covered by the Program in line with Result Area (RA 1-RA3) and DLI described above is presented in Table 1.2. 41. The DISREP PforR will provide funds to the early stages of PIP implementation to improve DISCOs technical and financial performance, enabling them to raise the private financing required to fully realize their PIP targets. The total funds that will be committed to Nigeria DISREP PforR is US$ 345 million. Excluded Activities 42. The DISREP PforR component does not support any investments that are not detailed in the approved DISCOs PIPs. The Program will only support investments in infrastructure and assets that are and will remain wholly owned by the DISCOs, irrespective of changes in DISCO operations or ownership. The Program will equally exclude activities that do not meet World Bank policy on eligibility for PforR financing. Specifically, the borrower shall ensure that the Program excludes any activity, for example large scale construction works, construction of distribution sub-stations and construction of other distribution infrastructures which will require right of way or which, in the opinion of the World Bank, are likely to have significant adverse impacts that are sensitive, diverse or unprecedented on the environment and/or requires significant land acquisition / large resettlement of affected people or economic impact, as defined in the World Bank policy on PforR financing (September 2020), as well as works, goods and consultancy contracts above the Operations Procurement Review Committee 18 thresholds. The PforR operations in Result Area 1 specifically will be limited to only rehabilitation of existing infrastructure or replacement of specific equipment/infrastructures in already existing distribution infrastructure. This may involve minimal land requirement as working space during the rehabilitation of distribution lines. Increasing of electricity connection through grid, or off-grid infrastructure may also involve minimal land requirement without physical displacement of people. In line with DISREP PforR activities outlined above, the exclusion of the enumerated activities will not impact the achievements of the results under the Program. Table 1.2: Typology of investments to be supported by the DISREP Potential investments RA1 RA2 RA3 Infrastructure investments Upgrade of existing injection substations  Medium-voltage (33kV and 11kV) line rehabilitation  Low-voltage (0.415kV) line rehabilitation  Distribution transformers   Customer metering   Theft reduction technology  Connections to feeders  Feeders  Supply points for grid connections  Supply points for GENCOs to support direct power purchasing  Commercial and management investments Customer services   Technologies and processes for the management of requests for new connections  Deployment of Commercial Management System (CMS)  Customer Relationship Management (CRM)   Deployment of Enterprise Resource Planning (ERP)   Deployment of Geographic Information System (GIS)   Deployment of Project Management and Works Management Systems   Deployment of Incident Recording and Management Systems (IRMS)   Deployment of Supervisory Control and Data Acquisition System (SCADA) to   operate high-voltage and medium voltage infrastructure Revenue Protection Planning   Health, Safety and the Environment (HSE) applications/implementation  Outage management systems for Quality of Service (QoS) tariff application  Distribution management system/Distribution automation   Data Aggregation Platform  Technologies and processes to manage supply from grid connections, including  renewable generation Technologies and processes to manage supply from direct power purchasing  from GENCOs, including from renewable generation Capacity building    19 1.3 Scope of the Environmental and Social Management System Assessment (ESSA) 43. The ESSA for the program examines the extent to which the Federal and State Governments and DISCOs existing environmental and social management systems operate within, an adequate legal and regulatory framework to guide environmental and social impact assessments, mitigation, management and monitoring at the PforR Program level; and incorporate recognized elements of good practice in environmental and social assessment and management, including: (i) early screening of potential impacts; (ii) consideration of strategic, technical, and site alternatives (including the “no action� alternative); (iii) explicit assessment of potential induced, cumulative, and transboundary impacts; (iv) identification of measures to mitigate adverse environmental or social risks and impacts that cannot be otherwise avoided or minimized; (v) clear articulation of institutional responsibilities and resources to support implementation of plans; and (vi) responsiveness and accountability through stakeholder consultation, timely dissemination of the PforR Program information, and responsive grievance redress mechanisms; among others3. 44. The ESSA has been prepared to ensure consistency with the “core principles� outlined in the World Bank’s policy for Program-for-Results Financing to effectively manage Program risks and promote sustainable development: The ESSA thereafter identified gaps, defined measures to strengthen the system and recommended measures that will be integrated into the overall Program. 45. The six core principles are: a. Environment: Promote environmental and social sustainability in the Program design; avoid, minimize, or mitigate adverse impacts, and promote informed decision-making relating to the Program’s environmental and social impacts. b. Natural Habitats and Cultural Resources: Avoid, minimize, or mitigate adverse impacts on natural habitats and physical cultural resources resulting from the Program. c. Public and Worker Safety: Protect public and worker safety against the potential risks associated with: (i) construction and/or operations of facilities or other operational practices under the Program; (ii) exposure to toxic chemicals, hazardous wastes, and other dangerous materials under the Program; and (iii) reconstruction or rehabilitation of infrastructure located in areas prone to natural hazards. d. Land Acquisition:4 Manage land acquisition and loss of access to natural resources in a way that avoids or minimizes displacement, and assist the affected people in improving, or at the minimum restoring, their livelihoods and living standards. e. Vulnerable Groups: Give due consideration to the cultural appropriateness of, and equitable access to, Program benefits, giving special attention to the rights and interests of the Indigenous Peoples and to the needs or concerns of vulnerable groups. f. Social Conflict: Avoid exacerbating social conflict, especially in fragile states, post- conflict areas, or areas subject to territorial disputes. 3 See World Bank (2019) Bank Directive: Program-for-Results Financing 4 Land acquisition involving displacement/resettlement is excluded and not applicable for this operation (see excluded activities in paragraph 36 and annex 11) 20 46. In line with the six core principles the relevant risks within the proposed Result Areas under the PforR cover environmental and social issues and include: a. Air, noise, water, soil and groundwater pollution and waste management due to rehabilitation works and possibly from polychlorinated biphenyls (PCB), contaminated oil, biodiversity loss as a result of poor vegetation management during the rehabilitation of feeder lines and other rehabilitation activities along the network; and e-waste generation due to installation/replacement of meters and implementation of MIS system. b. Occupational Health and Safety (OHS) issues including COVID-19 and non-COVID-19 issues during rehabilitation of distribution infrastructure, new connections and installation of meters. c. Waste management and GHG emissions as a result of rehabilitation of power distribution networks. d. Labour and occupational health and safety issues due to labour related rehabilitation of distribution infrastructure, installation of meters, and new connections under the program. e. Risk of exclusion of vulnerable and marginalized individuals / groups/disability exclusion, elite capture, etc. f. Possibility of gender based violence (GBV) as the Program envisions a range of rehabilitation projects, and these are activities that can increases GBV and risks of SEA/SH due to changes in labour patterns and income, creation of new hot spots for vulnerability, and changing community dynamics. g. Although the Program does not lead to ay security problem however, security issues (banditry, armed insurgence, and clashes between herders and farmers) especially in the North East and North West regions can affect rehabilitation of distribution infrastructure, having new connections and installation of meters. 47. The detail of applicability of Core Environmental and Social Principles (CP) to Nigeria DISREP Disbursement Linked Indicators (DLIs) is presented in Annex 1. 48. Specific environmental and social risks have been assessed and deemed to be of moderate level. The risks were assessed as moderate because the impacts resulting from the activities are temporary, minor, and not in environmental and socially sensitive areas and can be mitigated through normal measures for minor rehabilitation/ construction activities. Although adverse environmental and social impacts are limited, some weaknesses in the borrower’s system and possible lack of capacity to address the environmental and social impacts may limit the PforR’s ability to achieve its environmental and social operational objectives. 1.4 Approach of ESSA 49. The ESSA was prepared through a combination of reviews of existing program materials and available technical literature, interviews and consultations with government staff including staff of NERC, BPE and TCN, non-governmental organizations and electricity consumers, environmental and social regulatory agencies, and staff of DISCOs. 50. An environmental and social risk screening was undertaken at the concept stage (see Annex 2). The purpose of the screening was two-pronged. First, the screening was to confirm that 21 there are no activities which meet the defined exclusion criteria included in the PforR in line with the Bank Guideline for the ESSA. Secondly, the screening established the initial scope of the ESSA. This includes identification of relevant systems under the PforR and relevant stakeholders for engagement and consultations. 51. The ESSA process was informed by the Bank Guidance on PforR Environmental and Social System Assessment (Sept, 2020). The guidance sets out core principles and planning elements used to ensure that PforR operations are designed and implemented in a manner that maximizes potential environmental and social benefits while avoiding, minimizing or mitigating environmental and social harm. 52. Following the initial screening, the system review was conducted using a two-step approach: a. Identification of relevant systems that are pertinent to the ESSA was addressed in Section IV on overview of relevant government and DISCOs environmental and social management systems; and b. assessment of borrower’s (government and DISCOs) environmental and social management systems for consistency with the applicable Core Principles including capacity and enforcement of certain environmental and social measures, was addressed in Section V while environmental and social recommendations was addressed in Section VI. 53. In the assessment of the DISCOs and given the limitations imposed by COVID-19 pandemic, the team visited some of the DISCOs prior to the COVID 19 pandemic, had consultations virtually with the relevant managers and officers in the DISCOs, and reviewed the relevant E&S documents and other institutional documents submitted by the DISCOs in line with the request of the World Bank team. 22 SECTION II: STAKEHOLDER CONSULTATION 54. This section provides a summary of the stakeholder consultation activities undertaken for the ESSA as well as future engagement activities for ESSA disclosure. 55. Some consultations were carried out prior to the development of the ESSA despite COVID-19 pandemic. The consultations, which were online via Microsoft Teams, were carried out in line with the World Bank’s guideline on consultation during the pandemic. Different stakeholders were consulted. Those consulted include: the management of each of the eleven DISCOs in Nigeria with some representatives of relevant Ministries from the States within their jurisdiction, which was held between September 14-18, 2020; and with the management of BPE, NERC, and TCN, which was carried out on September 22. 56. Prior to the consultations, the DISCOs were presented with the consultation plan which included list of documents required for the assessment (see Annex 3) and a preliminary brief and questions that guided the discussion (see Annex 4). During the consultation with the DISCOs, the details of the DISREP PforR Program was presented to them. The representatives of the DISCOs also responded to the questions presented to them by the World Bank team. The DISCOs were thereafter requested to respond to the questions in writing and forward to the World Bank team. 57. The summary of the findings of the consultation with the eleven DISCOs on one hand and BPE, NERC and TCN on the other is presented in Tables 2.1 and 2.2 while the detailed report of the consultation with the eleven DISCOs is presented in Annex 5. The attendance list is presented in Annex 6. Further consultations will be carried out with the eleven DISCOs in order to present the findings/report of the ESSA and with government officials and electricity consumers (households and firms). Table 2.1: Summary of Responses from DISCOs Regarding Environmental and Social Management Issues DISCOs Summary of Responses Regarding Environmental and Social Management Issues Abuja The responses from the representatives shows that Abuja DISCO has an environmental and social management operations manual that guide actions regarding environmental and social issues. To ensure safety of workers and the public, the representatives of AEDC indicated that they carry out frequent inspections on equipment, public safety sensitization, town hall meetings, and that safety advisories are placed on vehicles, in churches and other public areas. They indicated that they have a GRM and a succession plan. Benin The DISCO has an environmental and social management operations manual that guide actions regarding environmental and social issues although they have not been carrying out EIA. Public awareness is carried out with use of signage and other mediums of communication. They also carry out frequent checks on equipment used 23 to ensure public safety. Grievances are addressed through various committees that handle complaints. Conflicts among staff are handled in accordance with the HR manual. They indicated that Benin DISCO is an equal opportunity employer and that one of their Non-Executive Directors is a woman while the CEO/Managing Director for six years is a woman. They also indicated that they have guidelines/ rules regarding succession/ change of top management to avoid conflicts and discrimination. Eko The representatives of Eko DISCO indicated that the company has an environmental and social management operations manual, OHS manual and a waste management plan. They also indicated that Eko DISCO is an equal opportunity employer. They also have a public enlightenment and consultation plan and the safety units ensures that the safety of the public is guaranteed. They also work with Lagos State government on issues of right of way. They indicated that they have a grievance redress mechanism and that conflict with staff are rare, but conflicts are resolved by panels set up by applying conditions of service and existing laws. They also have guidelines/ rules regarding succession/ change of top management to avoid conflicts and discrimination in line with gender/other issues Enugu The representatives of the DISCO indicated that the company has an environmental and social management operations manual, OHS manual and that they work closely with Enugu State Ministry of Environment and with other government agencies responsible for environmental management in the states they operate. They indicated that the enlighten the public through various means including radio programs. They also indicated that they mount warning precautions at strategic areas to draw attention to electricity hazards; they also conduct network inspection and monitoring. They also indicated that they are equal opportunity employer and that PWDs are not discriminated against as they have 10 staff currently who are PWD’s. The DISCO has an organogram with a chain of command for staff but they currently do not have guidelines/ rules regarding succession/ change of top management. Ibadan They DISCO indicated that they have an environmental and social management operation, but this is not in detail but they conduct EIAs and also has an OHS manual. They indicated that the safety of the public is guaranteed through engagement of the committee on HSE. Also, the DISCO is an equal opportunity employer and it ensures that PWDs are not discriminated against during recruitment. Conflicts among staff are dealt with in line with their Human Resources Policy. The DISCO has a policy on sexual harassment. There is a complaint centre for customers on issues they may have which are channeled to appropriate departments to rectify. For trade unions, members and staff are free to join or opt out of these unions. For pension schemes, there are schemes present in line with the pension Act. There are guidelines/ rules regarding succession/ change of top management. Ikeja The representatives of the DISCO indicated that the company has an environmental and social management operations manual, OHS manual. The DisCo, according to the representatives, has a public enlightenment and consultation plan as well as a waste 24 management plan and a recruitment and personnel manual. Equal opportunity is ensured by posting available vacancies online. Issues of conflict in host community are dealt with by having frequent interaction with community members. The team indicated that the DISCO has a security policy and a document for staff regarding chain of command and line of reporting; a clear succession plan to minimize conflicts as much as possible. Jos The representatives of the DISCO indicated that they do not have guidelines for environmental management however, they carry out environmental management based on state government policies. Regarding grievance redress, the DISCO does not have its own regulations or procedures, but they do have and OHS for guidance. The DISCO does not have an environmental guideline, nor social management plan. They do not usually conduct EIAs. Kaduna The representatives of the DISCO indicated that they have an OHS manual; no approved social management plan; no standalone security policy but there are corporate communication guidelines. They indicated that public safety is ensured by implementation of HSE guidelines and procedures. There is also an insurance policy in place to cover any public accidents and they also conduct public enlightenment exercises as well. Port There are environment guidelines embedded in the safety practice manual. The team Harcourt indicated that the DISCO has a safety mantra with safety briefs shared to staff; precautions are carried out on arrival at sites as well; while public awareness is carried out in targeted areas; schools, markets, etc. as well as through various media outlets. The DISCO has a log for incidents and cases of near misses Kano No response Yola They indicated that they were acquired by the federal government and hence applies the federal government institutional frameworks and approaches regarding E&S management. 58. The team also had consultations with NERC, BPE and TCN prior to the drafting of this ESSA. During the consultation held virtually on September 22, 2020, the World Bank Task Team gave a brief introduction of the project and its objectives as well as expectations from the TCN, BPE and NERC. Some discussions also centered on the role of TCN regarding the procurement of meters, Meter Data Management Software and Data Aggregation Platform. The minutes of the consultation is presented in Annex 6. The World Bank Task Team will hold further consultations with the TCN, BPE, NERC, DISCOs, customers, and other stakeholders as part of the program. Disclosure 59. The final ESSA report will be publicly disclosed on the World Bank external website and in- country portals and at relevant government Ministries, Departments and Agencies (MDAs) at Federal and State levels. 25 SECTION III: DESCRIPTION OF EXPECTED PROGRAM ENVIRONMENTAL AND SOCIAL IMPACTS 3.1 Overview of Program Risks and Benefits 60. The Nigeria DISREP PforR is one of the programmatic engagements to support FGN’s comprehensive reform effort under the Power Sector Recovery Program (PSRP) and it is meant to support improvement of DISCOs operational performance, service delivery and governance. Given its objective to improve the financial and technical performance of the distribution companies, the Program will ensure distribution efficiency and as such will have a lot of positive outcomes. 61. The Program will involve some direct physical works which will include rehabilitation of distribution lines, rehabilitation of PT and DT, installation of meters and increase in new connections. Thus, environmental and social risks, some of which are indirect and direct, are deemed to be moderate. The details of the range of key environmental and social risks and benefits associated with specific DLIs in the Nigeria DISREP PforR is presented in Annex 8. 3.2 Expected Environmental Benefits 62. The PforR program will deliver significant environmental benefits especially providing climate co-benefits because of reduction in the use of fossil fuels (petrol and gas) by households and business and also due to cost reduction as a result of improved metering efficiency. In line with the DLIs, the following environmental benefits will be delivered: 63. DLI 1 (Reduction in DISCOs’ metering gap): There could be climate co-benefits due to reductions in the per/kWh GHG emissions associated with the network as a result of reduced use of fossil fuels as consumption of power by customers reduces following the achievement of DLI 1. The achievement of this DLI aligns with the Multilateral Development Banks’ (MDB) list of eligible mitigation activities under Category 1.3: New information and communication technology, smart grid and mini grid, as well as Category 2.1: Retrofit of transmission lines or substations and/or distribution systems to reduce energy use and/or technical losses including improving grid stability or reliability. 64. DLI 2: (Number of new connections by DISCOs); DLI 3: (Kilometers of medium voltage (MV) distribution lines rehabilitated by DISCOs) DLI 4: (Increased collection efficiency by DISCOs) and DLI 5: (Reduction in transformer technical losses in existing distribution networks): There could be climate co-benefits due to reduced use of petrol- powered and diesel-powered electricity generators by households and businesses that will be part of the new connections and rehabilitated distribution lines. This will ultimately lead to improved air quality and reduction in pollutant and greenhouse gas emission. Also, use of off- grid connections through renewable energy-based systems, for new connections, would also have some climate –co-benefits. Achievement of DLI4 will discourage excessive use of electricity by consumers and thus will lead to reduced power consumption, reduced use of fossil fuels and hence reduction in carbon emissions. Besides, rehabilitation of PT and DT will 26 enhance reduction of ATC&C losses and distribution efficiency with associated climate-co- benefits. DLI 2 aligns with MDB list of eligible mitigation activities under Category 1.1: Wind power and Solar power, as well as Category 1.3: New information and communication technology, smart grid and mini grid. DLI 3 aligns with MDB list of eligible mitigation activities under Category 2.1: Retrofit of transmission lines or substations and/or distribution systems to reduce energy use and/or technical losses including improving grid stability or reliability; Category 3.2: Energy efficiency improvements in existing commercial, public and residential buildings as well as Category 3.3: Improvement in utility-scale energy efficiency through efficient energy use and loss reduction, or resource efficiency improvements. DLI5 also aligns with MDB list of eligible mitigation activities under Category 2.1 and 3.3. 65. DLI 6: (Compliance with NERC Code of Corporate Governance by DISCOs); and DLI 7 (Implementation of Management Information Systems (MIS) by DISCOs): DLI 6 will also result in enhanced distribution efficiency and thus reduced carbon emission. Achievement of DLI 7 will also enhance distribution efficiency as management will be acting based on concrete evidence. DLI7 DLI aligns with MDB list of eligible mitigation activities under Category 1.3: New information and communication technology, smart grid and mini grid, as well as Category 3.2: Energy efficiency improvements in existing commercial, public and residential buildings. 3.3 Expected Environmental Risks 66. The Program is expected to have direct and indirect environmental risks and the risks are adjudged to be moderate. Activities for the achievement of DLI (Reduction in DISCOs’ metering gap) will lead to the generation of e-waste as old and dysfunctional meters will be removed and new ones installed. 67. Activities for the achievement of DLI 2 (Number of new connections by DISCOs) and DLI 3: (Kilometers of medium voltage (MV) distribution lines rehabilitated by DISCOs): could lead to increased noise level, and air pollution from heavy duty vehicles and machines that will be used in the operation, wastes during rehabilitation activities, possible traffic obstruction and fire incident. Also, installation of new feeders into underserved areas near the existing distribution infrastructure may lead to cutting down of trees/vegetation and thus reducing their impact in carbon sequestration. The rehabilitation work could pose a danger to public, risk to community health and workers safety given the nature of electricity (could result in shocks, electrocution or fires) especially if poorly handled. There is also a possibility that the DISCOs do not have the capacity to manage environmental and social risks. This situation may pose a danger to the safety of workers, the public and environment, there could be sparks and fire incident during installation of meters. Also, there could be groundwater pollution due to possible leakage of PCB contaminated transformer oil during the rehabilitation of PTs and DTs, waste problem possibility of air pollution. 68. DLI 5: (Reduction in transformer technical losses in existing distribution networks): Environmental risks that could be associated with this DLI are air and ground water pollution due to possible leakage of PCB contaminated transformer oil during the rehabilitation of PTs and DTs, noise, traffic obstruction, and possible fire incident. 27 69. DLI 7 (Implementation of Management Information Systems (MIS) by DISCOs): The achievement of this DLI will lead to the generation of e-waste as some old computers and other ICT facilities will be disposed of and new ones acquired as a result of the updating of the MIS systems. 70. Regarding mitigation of these environmental risks, an assessment of the borrowers’ environmental systems to be able to mitigate these risks was done in Section IV and gaps and gap filling measures identified. 3.4 Expected Social Benefits: 71. The social benefits of the Program will be high when considered within the perspective of the current situation of power in Nigeria. To date, households, electricity access is still limited in Nigeria. According to the World Bank (Sustainable Access Database), 56.5% of the population in Nigeria had access to electricity in 2018, out of which 81.7% are in the urban area while 30.95% of the rural population has access to electricity. With about 90 million people lacking access to grid electricity, Nigeria has the largest access deficit in Sub-Saharan Africa and the second largest in the world, after India. With the evidence that welfare of the poor improves significantly with electricity access5, and given the high poverty rate in Nigeria (poverty head count rate is 40.1% translating to 82.9 million Nigerians6) which has been exacerbated by COVID-19 pandemic, improving access to electricity thorough new connections and enhancing distribution efficiency, as envisage in Nigeria DISREP PforR, will facilitate poverty reduction and economic growth. It will equally impact on education and health. Figure 3.1 shows the impact pathway of electricity consumption through macro-level, or economy-wide, effects and through effects at the consumer level. In line with the DLIs, the social benefits expected are as follows: 5 Davidson, O., & Mwakasonda, S. A. (2004). Electricity access for the poor: a study of South Africa and Zimbabwe. Energy for Sustainable Development, 8(4), 26–40. doi:10.1016/s0973-0826(08)60511-6 6 NBS (2019) Poverty and Inequality in Nigeria. Abuja, National Bureau of Statistics (NBS) 28 Source: adapted from Pueyo et al. (2013)7. Figure 3.1: Impact pathways of electricity consumption 72. DLI 1(Reduction in DISCOs’ metering gap): Achievement of this DLI will eliminate the practice of issuing estimated bills to customers and which could lead to excessive billing, loss of income and poverty. Effective metering will equally help to reduce technical and non- technical losses thus enhancing distribution efficiency and increased income for households and businesses and hence poverty reduction and economic growth as most citizens rely on income from enterprises that use electricity. Increased distribution efficiency and reliability will increase the number of hours that electricity is actually available and thus increase opportunities for children to study, thereby enhancing educational outcomes. It will also be beneficial to women as studies8 have shown that profits are higher for women using electricity for enterprises. 73. DLI 2 (Number of new connections by DISCOs): Increased access to reliable electricity supply, through new connections, is expected to increase productivity and improve health with local and global impacts. The income of those that are getting connected to electricity, especially women involved in small businesses, will be enhanced, while costs associated with the use of generators for electricity in the households and businesses prior to the connection will be eliminated and poverty will be reduced. The extension of electricity to new customers, especially in the rural areas, through the new connections will facilitate their economic activities and help them recover from the economic hardship due to COVID-19 pandemic. Also, school children and youths in the areas receiving new connections will have electricity which will enhance their studies with positive education outcomes. Besides, women especially, who often need power for most home activities will be impacted on positively. 7 Pueyo, A. (2013) 'The Evidence of Benefits for Poor People of Increased Renewable Electricity Capacity: Literature Review', IDS Evidence Report 31, Brighton: IDS 8 Pueyo, A., Bawakyillenuo, S., & Carreras, M. (2020). Energy Use and Enterprise Performance in Ghana: How Does Gender Matter? The European Journal of Development Research. doi:10.1057/s41287-020-00273-0 29 74. DLI 3 (Kilometers of medium voltage (MV) distribution lines rehabilitated by DISCOs) and DLI 5 (Reduction in transformer technical losses in existing distribution networks): Rehabilitation of the distribution lines and PT and DT will lead to the reduction in AT&C losses, enhanced distribution efficiency and reliability of electricity supply. This will lead to increased income for households and businesses that rely on electricity for economic activities and thus facilitate poverty reduction and recovery from the economic crisis as a result of COVID-19. Also, the performance of school children and youths residing in areas with stable electricity supply due to the rehabilitation will be enhanced. Women especially, who often need power for most home activities will be impacted on positively. The rehabilitation of the distribution network and PT and DT will equally help to reduce the incidence of near missises and grantee the safety of workers, customers and the general public. 75. DLI 4 (Increased collection efficiency by DISCOs): Currently average collection rate across the DISCOs currently stands at 66%. Similarly, to technical losses, the 34% of electricity supply that goes unpaid represents a significant revenue gap for DISCOs and for the entire power sector. Thus, efficiency in collection of tariffs will enhance DISCOs income as the DISCOs’ revenue gap will be reduced This will facilitate their performance in ensuring distribution efficiency and stability of power supply. This will in turn lead to increased income for households and businesses that rely on electricity for economic activities and thus facilitate poverty reduction and economic growth. Women and other vulnerable groups that need power to facilitate their economic activities will be impacted on positively. 76. DLI 6 (Compliance with NERC Code of Corporate Governance by DISCOs) and DLI 7 (Implementation of Management Information Systems (MIS) by DISCOs): A strong governance mechanism will facilitate distribution efficiency which is associated with many social benefits including enhanced income and poverty reduction. Also, an MIS system will help facilitate incident recording and thus, public and worker protection. It will also strengthen the management of the DISCOs and decision regarding every aspects of electricity distribution will be evidence based. Thus, an effective MIS system in the DISCOs will facilitate improved financial and technical performance resulting in distribution efficiency and stability in power supply which will in turn will enhance income and poverty reduction. 3.5 Expected Social Risks: 77. Given the nature of electricity, and the activities under the DISREP PforR, some social risks are associated with the Program although moderate. In line with the DLIs, the social risks expected are as follows: 78. DLI 1 (Reduction in DISCOs’ metering gap), DLI 2 (Number of new connections by DISCOs), DLI 3 (Kilometers of medium voltage (MV) distribution lines rehabilitated by DISCOs) and DLI 5 (Reduction in transformer technical losses in existing distribution networks): Power sector workers (especially technical workers) and public safety may be affected during the installation of meters, installation of new feeders and connection of new customers, rehabilitation of distribution lines and PT and DT given the nature of electricity and dangers associated with it. Workers may also be exposed to hazardous substances, especially 30 PCB-contaminated oil during the rehabilitation of PT and DT. Also, there could be SEA and SH during the distribution and installation of meters in homes and offices, extension of power to underserved areas and localities, and rehabilitation of distribution lines especially giving the influx of power sector workers into the communities and localities. In addition, there could be discrimination against vulnerable people and elite capture in the distribution and installation of meters and in connection of new lines especially when meters are in short supply. Besides, there could be bias, for example, gender, ethnic, religious bias or segregation due to social stratification in choosing locations where distribution networks will be rehabilitated given that resources may be limited. The DISCOs may choose locations where customers use more electricity and pay more money and neglect areas where poor and vulnerable people reside as the returns from the areas will be less. Indirectly, there could be conflicts between customers and DISCOs as some scrupulous customers may tamper with meters or quarrel with DISCO staff to prevent disconnection after electricity theft or tampering with meters especially non smart meters. 79. DLI 4 (Increased collection efficiency by DISCOs): In order to achieve this DLI, workers’ safety may be threatened when disconnecting customers that have not paid or those that tampered with meters/involved in electricity theft. Use of smart meters will limit the problem of tampering with meters and electricity theft. There is also possibility of GBV, SEA/SH especially involving power sector workers and customers. 80. Although the program will not trigger any security issues, security risks are a contextual risk that may prevent the achievement of the DLIs. Security risk is very pronounced in North East and North West Nigeria where there have been armed insurgency, banditry, kidnapping, clashes between farmers and herders. There is also ethnic tension across the country with different groups agitating for self-determination and posing security threats. Although government is making a lot of efforts to deal with these issues, security remains a threat to the Program. 31 SECTION IV: OVERVIEW OF RELEVANT BORROWER’S ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEMS 4.1 Description of Government Policy and Legal Framework 81. The Government of Nigeria (GoN) has a number of policies, instruments and laws which support environmental and social management and environmental and social impact assessment processes. There are a number of sectoral policies which provide directives to integrate environmental and social considerations in the decision-making process to avoid or minimize impacts associated with program implementation. This section summarizes the policy, regulatory, institutional and legal frameworks for environmental management Nigeria. The World Bank safeguard polices, and international environmental agreements and conventions are also presented. 4.1.1 Environmental Policy, Regulatory and Institutional Frameworks 82. This sub-section describes the GoN’s environmental management systems in relation to the core principles incorporated into the Bank Policy Program for Results Financing: (i) general principles of environmental and social impact assessment and management; (ii) mitigation of adverse impacts on natural habitats and physical cultural resources; and, (iii) protection of public health worker safety. National Policy on the Environment 2016 83. The goal of the National Policy on the Environment is to ‘ensure environmental protection and the conservation of natural resources for sustainable development’. This goal is meant to be achieved by the following strategic objectives: i. securing a quality of environment adequate for good health and wellbeing; ii. promoting sustainable use of natural resources and the restoration and maintenance of the biological diversity of ecosystems; iii. promoting an understanding of the essential linkages between the environment, social and economic development issues; iv. encouraging individual and community participation in environmental improvement initiatives; v. raising public awareness and engendering a national culture of environmental preservation; and vi. building partnership among all stakeholders, including government at all levels, international institutions and governments, non-governmental agencies and communities on environmental matters. National Forestry Policy (2006) 84. Nigeria’s National Forestry Policy was approved in 2006. The legislation to support this Policy, known as the National Forestry Act, has not been passed into law. Once passed, the National Forestry Act will be administered by the Federal Department of Forestry which is a parastatal agency of the FMEnv. The overall objective of the national forest policy is to achieve sustainable forest management that would ensure sustainable increases in the economic, social and environmental benefits from forests and trees for the present and future generation including the poor and the vulnerable groups. Specifically, the objectives include the need to: 32  increase, maintain and enhance the national forest estate through sound forest management practices;  address the underlying causes of deforestation, desertification including lack of policy support, market distortions, weak regulations and rural poverty;  promote and regulate private sector involvement in forestry development, and to create a more positive investment climate in the sector;  capitalize on the economic, social and environmental opportunities in forestry without undermining the resource base’  encourage forest dependent people, farmers and local communities to improve their livelihood through new approaches to forestry;  ensure the survival of forest biodiversity and to balance this with the pressing development needs of the country;  rehabilitate and conserve key watershed forests;  promote and maintain the greening of the urban environment, and meet the increasing demand for forest products by urban centres;  ensure that improved tenure to land and tree acts as an incentive for individuals, communities and women in particular to invest in forestry;  help private owners and communities to reserve land for forestry;  build capacity and systems for state and local government to engage actively in forest resources management and development;  apply an effective regulatory system to safeguard public interests under private sector forest management agreements to ensure adequate legal provisions for tenure in order to encourage long-term investment;  develop partnerships or management agreement with local communities that improve forest management and alleviate poverty;  strengthen and make best use of the capacity and reach of NGOs and CBOs in facilitating forest development;  develop and promote responsive, affordable, well-informed and decentralized forestry advisory services to farmers, communities and the forest industry;  develop and support demand driven, well-coordinated forestry research and training institutions and programmes; and  develop a forest sector programme that translates forest policy into action in a way that complements programmes in related sectors. 85. There are three categories of protected areas in Nigeria established to protect flora and fauna. These categories are the National Parks, Game Reserves and Forest Reserves. At the national level, the mandate for wildlife conservation and protected areas management is the responsibility of the National Parks Service, an agency within the FMEnv. There are seven national parks spread across the country. These parks receive the highest level of protection in accordance with the National Parks Service Act of 1999, No 46. A variety of game reserves are managed by the states in which they reside in an effort to preserve wildlife species. States also manage innumerable forest reserves with the intention of preserving trees and other plant species along with associated wildlife. Many forests are highly degraded due to unsustainable extraction of timber and non-timber forest products, namely, fuelwood, economically important plant species, bushmeat and other resources. 33 Environmental Impact Assessment Act (EIA) N0. 86 of 1992 86. The Act, which is a direct response to the outcome of the United Nations Conference on Environment and Development (UNCED) in Rio in 1992, outlines the goals and objective of an EIA, the minimum content of an EIA and a list of activities that are not permitted to go ahead until FEPA, now Federal Ministry of Environment has been consulted and has given its approval. The main aim of the Act is to ensure environmentally sound and sustainable development projects. The Act makes it mandatory for an EIA to be carried out for certain types of projects comprising various industrial, mining and petroleum activities. It categorized projects to indicate the level of analysis required. Category 1 projects indicates an expectation of significant environmental impacts and need to undertake a full EIA with a comprehensive report. These are project in environmentally sensitive areas, for example, coral reefs, mangrove swamps, tropical rainforests, areas with erosion soils, natural conservation areas etc. Category 2 indicates that a proposal may have impacts of a lesser magnitude that can be more readily mitigated. Here, some level of analysis is necessary depending on the type of impacts. This involves projects in agriculture and rural development, industry and infrastructure etc. Category 3 indicates that no adverse impacts are expected, and that no EIA is needed, for example, nutrition programs, education programs, etc. The EIA procedural guideline in Nigeria involves project proposal, initial environmental examination, screening, scoping, EIA study, review, decision making, monitoring and audit. Table 2.1 summarizes the other existing regulations applicable to environmental protection while Table 2.2 presents a list of proposed legislations. Nigerian Environmental Management Act: 87. This act was drafted following the amalgamation of the Federal Environmental Protection Agency into the Ministry of Environment but was never ratified. It repeals the 1988 Federal Environmental Protection Agency Decree No.58 (amended No.59 and No.14) and establishes the FEPA as part of the Ministry with the Minister of Environment having primary responsibility for its implementation. It does not repeal any other environmentally related legislation. As well as the general environmental provisions, which include environmental sanitation and occupational health, it specifies the powers of authorized officers, penalties and fines. The Act gives the Minister the authority to grant environmental permits for prescribed activities which includes sand mining but not any other mining activities. National Environmental Standards and Regulations Enforcement Agency (NESREA) (Establishment Act, 2007): 88. The main aim of this act is to establish the National Environmental Standards and Regulations Enforcement Agency (NESREA). The agency has responsibility for the protection and development of the environment, biodiversity conservation and sustainable development of Nigeria’s natural resources in general and environmental technology, including coordination and liaison with relevant stakeholders within and outside Nigeria on matters of enforcement of environmental standards, regulations, rules, laws, policies and guidelines. Its key role is to enforce compliance with laws, guidelines, policies and standards on environmental matters including provisions of international agreements, protocols, conventions and treaties on the environment, namely climate change, biodiversity, conservation, desertification, forestry, oil and gas, chemicals, hazardous wastes, ozone depletion, marine and wild life, pollution, 34 sanitation and such other environmental agreements as may from time to time come into force; enforce compliance with policies, standards, legislation and guidelines on water quality, environmental health and sanitation, including pollution abatement, among others. National Environmental Protection (Pollution Abatement in Industries and Facilities Generating Wastes) Regulation, 1991 S. 1. No 9. 89. The regulation imposes restrictions on the release of toxic substance to the environment. It also indicates that the collection, treatment, transportation and final disposal of waste shall be the responsibility of the industry or facility generating the waste. The regulations require industries and facilities including mining sector to monitor pollution to ensure control. Other provisions of the regulation include permit by industries for storage and transportation of harmful toxic wastes; strategies for waste reduction; disposal of solid wastes in environmentally safe manner; and protection of workers. Penalties for contravention are also spelt out in the regulation. National Environmental Protection (Management of Solid and Hazardous Wastes) Regulations, 1991 S. I. No. 15. 90. The regulations make provisions for the handling and management of solid hazardous waste as well as define the objectives of hazardous waste management, the functions of appropriate government agencies and the obligations of industries. The regulations highlighted dangerous waste lists and guidance on the management of spills and discharges into the environment. The regulations also define the requirements of ground water protection, surface impoundment, land treatment, waste piles, etc. The hazardous substance tracking program with a comprehensive list of acutely hazardous chemical products and dangerous waste constituent are also provided in the regulations as well as the requirements and procedure for inspection, enforcement and penalty. National Environmental Protection (Effluent Limitation) Regulations, 1991 S.I. No8. 91. These regulations make it mandatory for every industry to install anti-pollution equipment for the detoxification of industrial effluent chemicals discharge and also make provision for further effluent treatment. The regulations also prescribe maximum limit of effluent parameters allowed for discharged and spell out penalties for contravention. National Environmental Health Practice Regulation 2016: 92. The regulation was enacted as a supplement to the Environmental Health Officers Registration Etc. Act, 2002. The regulations provides guideline for the enforcement of the regulatory powers in the Act; prevent and abate nuisance, protect, preserve and promote the physical and social well-being of the public; prevent and control the incidence of communicable diseases through environmental health intervention; reduce environmental hazards to health, safeguard and maintain aesthetic value of the environment; promote the general welfare of the public by regulating the sanitary construction and sanitation of all premises; and regulate private and public sector collaboration for purposes of maintaining adequate sanitation and promotion of public health and safety. 93. To enhance environmental protection in Nigeria, some statutory provisions have been put in place: Table 3.1 the regulations governing environmental management in Nigeria which were instituted prior to the establishment of NESREA. With the establishment of NESREA, the 35 agency has developed thirty-three environmental regulations for environmental management. The regulations cover various environmental issues including power. According to NESREA, these regulations are to ensure that our national development agenda is not at variance with the carrying capacity of our fragile environment. With the recent outbreak of corona virus pandemic (COVID-19), the agency developed guidelines for handling of infections waste within the context of corona virus (COVID-19) and guidelines for handling chemicals used for disinfecting surfaces against coronavirus (COVID-19). Details of the regulations and guidelines can be found in NESREA website. Table 4.1: Existing National Environmental Protection Regulations Regulations Year Provisions Workmen Compensation Act 1987 Occupational health and safety Harmful Wastes (Special 1988 Provides the legal framework for the effective Criminal Provisions etc.) Decree control of the disposal of toxic and hazardous waste No. 42 into any environment within the confines of Nigeria National Environnemental 1991 The regulation makes it mandatory for industrial Protection (Effluent Limitation) facilities to install anti-pollution equipment, makes Régulation provision for effluent treatment and prescribes a maximum limit of effluent parameters allowed. National Environmental 1991 Imposes restrictions on the release of toxic Protection (Pollution and substances and stipulates requirements for Abatement in Industries in monitoring of pollution. It also makes it mandatory Facilities Producing Waste) for existing industries and facilities to conduct Regulations periodic environmental audits. National Environmental 1991 Regulates the collections, treatment and disposal of Protection (Management of Solid solid and hazardous wastes from municipal and and Hazardous Wastes) industrial sources. Regulations. National Guideline and Standard 1991 The regulations provide guidelines for management for Environmental Pollution of pollution control measures. Control Environmental Impact 1992 The decree makes it mandatory for an EIA to be Assessment Act (Decree No. 86). carried out prior to any industrial project development Urban and Regional Planning 1992 Planned development of urban areas (to include and Decree No 88 manage waste sites) 94. Other provisions are: a. Environmental Impact Assessment Procedural Guidelines 1995 b. Guidelines and Standards for Environmental Pollution Control in Nigeria 1991 c. Environmental Impact Assessment (Amendments) Act 1999 d. National Guidelines and Standards for Water Quality 1999 e. National Guidelines on Environmental Management Systems (EMS) 1999 f. National Guidelines on Environmental Audit in Nigeria 1999 36 Description of Environmental Institutional Framework 95. The main institutions with key responsibilities for environmental and social management are as follows: Federal Ministry of Environment 96. The FMEnv was created in 1999 and replaced the Federal Environmental Protection Agency. At the time it also incorporated nine Departments from other Ministries. The mandate of the new Ministry is to co-ordinate environmental protection and natural resources conservation for sustainable development and specifically to: a. Secure a quality of environment adequate for good health and well-being; b. Promote the sustainable use of natural resources; c. Restore and maintain the ecosystem and ecological processes and preserve biodiversity; d. Raise public awareness and promote understanding of linkages of environment; and e. Co-operate with government bodies and other countries and international organizations on environmental matters. The National Environmental Standards and Regulations Enforcement Agency (NESREA) 97. NESREA is an Agency of the Ministry of Environment and is charged with the responsibility of enforcing environmental laws, regulations and standard in deterring people, industries and organization from polluting and degrading the environment. NESREA has the responsibility for the protection and development of the environment, biodiversity conservation and sustainable development of Nigeria’s natural resources in general and environmental technology including coordination, and liaison with, relevant stakeholders within and outside Nigeria on matters of enforcement of environmental standards, regulations, rules, laws, policies and guidelines. Some functions of the Agency, amongst others, include to:  enforce compliance with laws, guidelines, policies and standards on environmental matters;  coordinate and liaise with, stakeholders, within and outside Nigeria on matters of environmental standards, regulations and enforcement;  enforce compliance with the provisions of international agreements, protocols, conventions and treaties on the environment including climate change, biodiversity conservation, desertification, forestry, oil and gas, chemicals, hazardous wastes, ozone depletion, marine and wild life, pollution, sanitation and such other environmental agreements as may from time to time come into force;  enforce compliance with policies, standards, legislation and guidelines on water quality, Environmental Health and Sanitation, including pollution abatement;  enforce compliance with guidelines, and legislation on sustainable management of the ecosystem, biodiversity conservation and the development of Nigeria’s natural resources;  enforce compliance with any legislation on sound chemical management, safe use of pesticides and disposal of spent packages thereof;  enforce compliance with regulations on the importation, exportation, production, distribution, storage, sale, use, handling and disposal of hazardous chemicals and waste, other than in the oil and gas sector; 37  enforce through compliance monitoring, the environmental regulations and standards on noise, air, land, seas, oceans and other water bodies other than in the oil and gas sector;  ensure that environmental projects funded by donor organizations and external support agencies adhere to regulations in environmental safety and protection;  conduct environmental audit and establish data bank on regulatory and enforcement mechanisms of environmental standards other than in the oil and gas sector;  create public awareness and provide environmental education on sustainable environmental management, promote private sector compliance with environmental regulations other than in the oil and gas sector and publish general scientific or other data resulting from the performance of its functions; and  carry out such activities as are necessary or expedient for the performance of its functions. The Agency has powers to:  prohibit processes and use of equipment or technology that undermine environmental quality;  conduct field follow-up of compliance with set standards and take procedures prescribed by law against any violator;  subject to the provision of the Constitution of the Federal Republic of Nigeria, 1999, and in collaboration with relevant judicial authorities establish mobile courts to expeditiously dispense cases of violation of environmental regulation. 4.1.2 Social Policy, Regulatory and Institutional Frameworks Labor Laws and Labor Protection 98. Labor law is well developed in Nigeria; with laws defining the rights and obligations of labor and regulating most aspects of the relationship between the employer and labor including contracts, wages and hours, discrimination, terminations, lay-offs, safety, pregnant workers, reasonable accommodations and others. National Labor and Employment law is largely based on the following statutes:  the Labor Act of 2004;  the Trade Union Amended Act, 2005;  the Employees Compensation Act, 2010;  the Factories Act, 2004;  the Pensions Act, 2004; and  The Trade Disputes Act, 2004. The Labour Act of 2004 99. The Labour Act 2004 was enacted to replace the Labour Code Act and to consolidate the law relating to labour. Part 1 of the Act provides for the protection of wages, contracts of employment and terms and conditions of employment; part 2 provides for recruiting; part 3 provides for special classes of worker and miscellaneous special provisions; while part 4 is supplemental. The Act in the different parts made a lot of provisions to ensure that the interest of the worker is protected. For example, under protection of wages the Act made provisions to ensure that the worker's dignity regarding wages is maintained. For example, the Act provides 38 in part 1No 2 that no employer shall impose in any contract for the employment of any worker any terms as to the place at which, or the manner in which, or the person with whom any wages paid to the worker are to be expended; and every contract between an employer and a worker containing any such terms shall be illegal, null and void. The Trade Union (Amended) Act 2005 100. The Trade Union Act (the Principal Act) makes provisions with respect to the formation, registration and organization of trade unions, and the Federation of Trade Unions. As provided in the Act, "trade union" means any combination of workers or employers, whether temporary or permanent, the purpose of which is to regulate the terms and conditions of employment of workers, whether the combination in question would or would not, apart from this Act, be an unlawful combination by reason of any of its purposes being in restraint of trade, and whether its purposes do or do not include the provision of benefits for its members. The Act prohibits unregistered unions from function. The Principal Act was amended in 2005 to make some more provisions especially as to reduce conflicts between government and trade unions and to protect workers. For example, regarding membership of trade unions, the amended Act provides in Section 12 (4) that membership of trade union is voluntary. It states that "notwithstanding anything to the contrary in this Act, membership of a trade union by employees shall be voluntary and no employee shall be forced to join any trade union or be victimized for refusing to join or remain a member�. The amended Act, to ensure the funding of trade unions, empowers employers to make deduction from the wages of every worker who is a member of any of the trade unions for the purpose of paying contributions to the trade union so registered; and remit such deductions to the registered office of the trade union within a reasonable period or such period as may be prescribed from time to time by the Registrar. The Employees Compensation Act 2010: 101. The Employee’s Compensation Act, 2010 is a social security/welfare scheme that provides comprehensive compensation to employees who suffer from occupational diseases or sustain injuries arising from accidents at workplace or in the course of employment. The basis or justification for ‘compensation’ is the employer’s duty of care. The objectives of the Act are as follows: (a) provide for an open and fair system of guaranteed and adequate compensation for all employees or their dependents for any death, injury, disease or disability arising out of or in the course of employment; (b) provide rehabilitation to employees with work-related disabilities as provided in this Act; (c) establish and maintain a solvent compensation fund managed in the interest of employees and employers; (d) provide for fair and adequate assessments for employers; (e) provide an appeal procedure that is simple, fair and accessible, with minimal delays; and (f) combine efforts and resources of relevant stakeholders for the prevention of workplace disabilities, including the enforcement of occupational safety and health standards. The Factories Act 2004 102. An Act to provides for the registration, etc., of factories provides for factory workers and a wider spectrum of workers and other professionals exposed to occupational hazards, but for whom no adequate provisions had been formerly made; and provides for adequate provisions 39 regarding the safety of workers to which the Act applies and to impose penalties for any breach of its provisions. The Act in sections 2(1) and 3(1) provides that any premises used as a factory must be registered as such. In addition to other provisions the Act provides for cleanliness of factories, avoidance of overcrowding which could cause risk or injury to the health of workers, adequate ventilation in workrooms, lighting of workrooms, provision of sanitary conveniences, among others. These are aimed for the protection of workers and others in the factory. The Pension Reform Act 2004: 103. The Act established the contributory pension scheme (the Scheme) for employees in the public and private sectors in Nigeria; and the National Pension Commission (NPC), in order to facilitate the payment of retirement benefits to deserving employees. As provided in the Act, the objectives of the Scheme are to: (a) ensure that every person who worked in either the Public Service of the Federation, Federal Capital Territory or Private Sector receives his retirement benefits as and when due: (b) assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age: and (c) establish a uniform set of rules, regulations and standards for the administration and payments of retirement benefits for the Public Service of the Federation, Federal Capital Territory and the Private Sector. On the other hand, the principal object of the Commission, as provided in the Act, shall be to regulate, supervise and ensure the effective administration of pension matters in Nigeria. The Trade Disputes Act, 2004 104. The Act makes provisions for the settlement of trade disputes and other matters ancillary thereto. The Act established the National Industrial Court. The Act provides for procedure of settling dispute before it is reported; apprehension of trade dispute by the Minister; reporting of dispute if not amicably settled; appointment of conciliator, etc. Regarding the procedure before dispute is reported, the Act provides that parties to the dispute shall first attempt to settle it by an agreed means for settlement of the dispute apart from the Act. It is only when this procedure fails or does not exist that the parties report within seven days and come together to settle the dispute under a conciliator. Notwithstanding this provision, the Minister can apprehend the dispute and decide on the cause of action for the settlement of the dispute. 105. The Federal Ministry of Labor and Employment is the main regulatory agency. There are also well-organized labor unions within Nigeria. The National Industrial Court has exclusive jurisdiction in civil cases connected to labor, employment, trade unions and matters related to the workplace including health and safety. With regard to discrimination, Section 42 of the Nigerian Constitution provides for freedom from discrimination on the basis of sex, age, ethnic group, disability and political affiliation. 106. The Inspectorate (INSP) Department of the Ministry of Labour and Employment is the department responsible for monitoring and inspecting the implementation of labour laws and policies in order to ensure compliance. The INSP mandates are to conduct labour inspection services to industrial, agricultural and commercial workplaces to enforce the National Labour Standards; enforce the National Policy on Child Labour and its National Action Plan on the Elimination of Child Labour in Nigeria; supplies technical information and 40 advice to employers and workers concerning the most effective way to complying with Labour Act and related legislations; collates and analyze information needed to preventive mediation, with a view to nipping in the bud, potential areas of conflict between labour and management; educates and builds capacity of professional Officers of the Ministry and Employers on labour administration and emerging trends in the world of work; ensures fair labour practices through intervention and handling of labour complaints; and survey and monitor Labour Health Areas to ensure compliance to labour standards and protection of workers. They are also responsible for gender issues in the ministry; and mainstreaming and coordination of gender related activities in work places and in other ministries; serves as advisor to labour matters to state government; responsible for the administrative, advisory, operational and development (capital projects) matters related to Labour Administration in all the States of the Federation and FCT, Abuja; serves as secretariat of the National Steering Committee on Child Labour (NHFC); serves as secretariat to National Housing Facilitation Council (NHFC); serves as secretariat to Senior Officers Conference of the Ministry and its parastatals; and serves as co -secretariat to Alliance 8.7 in Nigeria. 107. The Labor Act of 2004 is in force in all States of the federation however, the capacity to enforce labor laws is weak given the availability of resources. In 2015, the Labor Inspectorate employed 660 labor inspectors lower than ILO’s recommendation of 3800 in order to adequately enforce labor laws throughout the country (one inspector for every 15,000 workers in industrializing economies). The Act sets out the minimum age for work as 12, and the minimum age for hazardous work as 18. However, there are inconsistencies in the laws making it unclear what minimum ages apply for certain types of work. Child Rights Act 108. The Federal Child’s Right Act (CRA) (2003) codifies the rights of children in Nigeria. The Act was designed to incorporate into its laws all the rights guaranteed in the United Nations’ Convention on the Rights of the Child. The U.N. convention, adopted in 1989, states that: “The child shall be protected against all forms of neglect, cruelty and exploitation. He shall not be admitted to employment before an appropriate minimum age; he shall in no case be caused or permitted to engage in any occupation or employment which would prejudice his health or education, or interfere with his physical, mental or moral development.� The Act must be ratified by each state to become law in its territory. Frameworks for Gender Issues 109. Nigeria has committed herself in principle to promoting gender equity and social inclusion. Several policy statements and programs at the state and federal levels clearly indicate the nation’s commitments to achieving the Sustainable Development Goals (SDGs) especially goal 5 on gender equality. The nation established the Ministry of Women Affairs at both federal and state levels in 1999. Nigeria also signed various treaties that promote gender equality and empowerment including the United Nation (UN) Conventions on the Elimination of all forms of Discrimination Against Women (CEDAW) in 2000 and the African Union (AU) Protocol on Women Rights. The Nigerian National Assembly has passed specific bills directed at protecting women such as Senate Bill 66 (2008) which provided for the abolition of all forms of discrimination against women in Nigeria and Senate Bill 300 (2009) which amended the Labor Act to remove discrimination against women relating to night shifts and underground 41 work (Federal Government of Nigeria 2009). The House of Representatives also passed bills that sought to protect women by prohibiting corporate prostitutions (2009), providing support for battered women (2003) and prohibiting Female Genital Mutilation (FGM) (2000). 110. Many States in Nigeria are gender sensitive in its activities and has domesticated some gender-based legislations (see Annex 6) and conventions which Nigeria signed into, for example, the Violence Against Person Prohibition Act of 2015. The Women and Gender Affairs Department of the Ministry of Women Affairs is one of the key operational Departments charged with the responsibility of promoting women’s advancement at both State and National levels. Management of Land Acquisition 111. Land holdings in Nigeria can be broadly classified into public/government, private, and communal. Public/government lands are lands owned by government comprising federal, state and local governments and their agencies. Private lands are defined as those whose ownership is vested in private individuals, families, and lands under customary tenancies. Communal lands are lands which have their ownership vested in communities. These lands are usually administered by community leaders with the assistance of their councils of elders. 112. The legal basis for land acquisition and resettlement in Nigeria is the Land Use Act of 1978 which was modified in 1990. The critical sections regarding land acquisition is as follows:  Section 1: Subject to the provision of this Act, all land comprised in the territory of each state in the Federation is hereby vested in the Governor of each state and such land shall be held in trust and administered for the use and common benefit of all Nigerians in accordance with the provision of this Act.  Section 2: (a) All land in urban areas shall be under the control and management of the Governor of each State; and (b) all other land shall be under the control and management of the local government within the area of jurisdiction in which the land is situated. 113. Therefore, according to the Land Use Act, all land in Nigeria is vested in the Governor of each State and shall be held in trust for the use and common benefit of all people. The administration of land area is divided into urban land which is directly under the control and management of the Governor is each State; and non-urban land, which is under the control and management of the Local Government. The Governor of each State has the right to grant statutory rights of occupancy to any person or any purpose; and the Local Government will have the right to grant customary rights of occupancy to any person or organization for agricultural, residential and other purposes. Grievance Redress Mechanism in Nigeria 114. In Nigeria, there are different approaches, (but often specific to issues, institutions involved or projects), to make complaints and obtain redress. First, the justice system provides for courts where aggrieved persons can seek redress. Also there is the Public Complaints Commission where individuals and groups can lodge complaints against administrative injustice and get redress. Besides, the Ministry of Justice has the Legal Aids Council established under the law (Legal Aids CAP L9, 2011) which provides legal aid and advice to people with low income, among others. Some state government also have different institutional arrangements for 42 providing free legal services to the poor and vulnerable, for example, Public Defender Law and Multidoor Courthouse Law in Delta State Nigeria; and the Special People’s Law in Lagos State Nigeria. 4.1.3 State Level Environmental Policy, Regulatory and Institutional Frameworks 115. Almost all the states in the country and the FCT have a State Ministry of Environment established by the State government. In some States this office is combined with another function such as Ministry of Environment and Natural Resources in Kaduna State; or Ministry of Environment and Mineral Resources in Enugu State. Some states, in addition to the establishing a Ministry of Environment also has State Environment Protection Agency for example, Kaduna Environment Protection Authority is the enforcement arm of the State Ministry responsible for environment, waste disposal, etc.; or State Waste Management Agency. Some states also have laws and regulations guiding environmental management. The main functions of the State Ministry of Environment are as follows: a) Formulation and implementation of environmental policies and programs for the states; b) Monitoring and enforcement of environment laws and regulations in the state; c) Collaboration with federal government and donor agencies on environmental matters; d) Control of environmental and natural resources degradation; e) Coordinates and supervises the activities of environmental agencies within the state; among others. 4.2 Power Sector Policy, Legal and Institutional Framework in Nigeria The National Energy Policy: The FGN recognizes that women and men are impacted differently by power sector reform and improved service delivery. The draft revised National Energy Policy of 2013 pays specific attention to gender-differentiation in energy needs and use, impacts of energy use, resource ownership and participation in the energy sector. A Gender Focal Point has been established in the FMOP, within the Sustainable Development, Climate Change, Gender and Human Rights Unit, which seeks to ensure compliance with the National Gender Policy (2006). The latter focuses on women’s empowerment and a commitment to gender mainstreaming as a development approach. In addition, the FMBNP has partnered with the Rural Women Energy Security initiative, as improved access and energy services have the potential to promote gender equality by creating jobs and business opportunities for women. Chapter eleven of The Revised National Energy Policy of 2013 states the following in relation to gender: a. The nation shall encourage and ensure gender mainstreaming in energy issues, infrastructure programs and projects. b. The nation shall disaggregate energy use, supply, and impacts by gender in energy project design and implementation. Objectives a. To create awareness on gender issues in the energy sector. b. To provide better basis for incorporating gender in energy project design and implementation at the micro- and macro-policy levels. Short-Term Strategies a. Promoting integrated approaches and various solutions that recognize the importance of wood energy and cooking for poor women and its health implications. 43 b. Ensuring equal access to electricity for water pumping, agricultural processing, security, work productivity, and health in the framework of sectoral development initiatives. c. Providing equal access to credit facilities, extension support services, and training in energy and electricity supplies for women’s domestic tasks as well as their micro- enterprise activities are met. d. Developing a reliable gender responsive statistical data. e. Incorporating gender concerns into energy and rural development policies and programs. f. Monitoring and evaluating the impacts of rural energy projects on poverty alleviation and gender equity g. Conducting gender audits of national energy and other related policies. h. Establishing gender units in all MDAs in the energy sector. i. Ensuring gender sensitive capacity building programs in the energy sector. 116. The Sustainable Development Climate Change, Gender and Human Rights Unit : The sustainable Development/Climate Change, gender and Human Rights Unit (SD/CC Unit) was established on the 6th May 2013 with approval of the Head of Service. Its objectives are to: (a) Improve service delivery throughout the power sector through the integration of social dimensions of power sector reforms with the core technical aspects of generation, distribution and transmission of power as well as the production of energy efficient products and equipment9. (b) Assess proposals and make recommendations for the training of staff in the areas of sustainable development of power, renewable sources of energy, gender matters, respect for human rights in the power sector and climate change issues; (c) Promote the use of energy efficient gadgets and gender friendly household equipment through public campaigns and advocacy with promoters and developers; (d) Develop strategies to raise awareness of the relationship between clean and green energy policies on the hand and prosperity of the nation on the other hand (e) The unit also works in collaboration with other Departments in the promotion of investment and research by the government, private sector and development partners so as to promote renewable energy as well as the affirmation of women as equal partners in the development of the power sector The Electric Power Sector Reform Act 2005: 117. The Act has a number of sections that are focused on the protection of consumers and the transparent dissemination of information. The Act mandates the NERC to ensure that electricity Operators recover costs on prudent investment and provide quality service to customers. a. To ensure quality service delivery, it is pertinent that electricity customers know their rights. Specific measures to protect consumers are: b. Customer Service Standards c. Customer Complaints Handling Standards and Procedures d. Codes of Practice to assist special needs customers (disabled, elderly or severely ill) e. Procedures for assisting customers with difficulty in paying bills f. Procedures for applying for electricity service 9 Annual Report of the sustainable development /climate change, gender and human rights unit . (No date) 44 g. Procedures for Disconnecting non-paying customers h. Information to consumers and the manner of dissemination i. Standards for compensation to consumers who do not enjoy regular power supply. j. Standards on connection, safety, reliability of supply, technical codes and manuals. Grievance Redress Mechanisms of NERC 118. The NERC has a number of mechanisms and consumer-oriented goals to institutionalize grievance redress mechanisms, communication and social accountability. They include: a. Establishment of functional Customer Complaints Units (CCUs) in all the Business Units as a minimum. b. Provision of conducive environment for customers lodging complaints. c. Training of front line customer service personnel of CCUs. d. Provision of Customer Relationship Management (CRM) systems including customer complaints call centers. e. Establishment of functional Customer Complaints Forum offices f. Compliance to monthly reporting requirements as stipulated in the Regulation. NERC Customer Complaints Handling: Standards and Procedure 2006: 119. In line with the power conferred on it by the Electric Power Sector Reform Act 2005, the NERC made the regulation. The regulation is applicable to all distribution licensees in Nigeria. In line with the regulation, complaint means any allegation in writing made by the complainant which may include but not restricted to, the following: a) there exists a defect or deficiency in the electricity service provided by the Distribution Licensee; b) an unfair trade practice or a restrictive trade practice undertaken by the Distribution Licensee in providing electricity services; c) the Distribution Licensee has for the electricity services mentioned in the complaint, charges a price in excess of the price fixed by the Commission, for supply of electricity and allied services; d) the electricity service provided by the Distribution Licensee may be unsafe or hazardous; e) recovery of expenses incurred in excess of charges approved by the Commission in providing an electric line or electric plant; f) any other act that affects the fulfillment of the contractual relation between the customer and the Distribution Licensee; or is in contravention of the provisions of any Order of the Commission or law for the time being in force. The regulation provides that every Distribution Licensee shall establish a Customer Complaints Unit within its premises. The unit shall have the responsibility of receiving and resolving customer complaints. The Distribution Licensee may also choose to establish more than one to cover the different locations within its operation area. Customer Service Standards of Performance for Distribution Companies Regulation: 120. In exercise of its powers under the Nigeria Electricity Reform Act 2005, the NERC also issued the Customer Service Standards of Performance for Distribution Companies regulation. The regulation is to ensure that DISCOs maintain quality standard in its operations. It has some provision to ensure that standards are maintained. One of the provision is as follows: 1. Wherever a DISCO is informed by a Customer during working hours that electricity supply to his premises has gone off, an authorized official from the DISCO shall visit 45 the Customer’s premises within twenty-four hours of being notified by the Customer to determine the cause of the problem, and where the cause of the outage is a problem with the DISCo’s equipment, one of the following standards shall be applied, that is, in the case of failure of the DISCO’s fuse - the fuse shall be rectified and the electricity supply reconnected within twenty-four hours of the original notification of outage. minor fault in the DISCO’s equipment- the fault shall be rectified and the electricity supply reconnected within twenty-four hours of the original notification of the outage; any other fault in the DISCO’s equipment, the fault shall be rectified and the electricity supply reconnected within 48 hours of the original notification of the outage. 2. A DISCO shall be exempted from the regulation in the following circumstances, that is to say, where: a. it is found that the Customer did not inform the DISCO; or b. the problem or the fault is found to be from the Customer’s electrical installation; or c. due to the nature of the fault, it is impracticable for the DICSO to restore the supply to the Customer’s premises within the period stipulated in this regulation. Electricity Industry (Enforcement) Regulations, 2014: 121. This regulation covers the process of enforcement of the regulations issues by NERC. Regulations are made by NERC to ensure the attainment of the principal objects of the Commission in section 32 of the Act, and specifically, to enforce, maintain and ensure the adherence by licensees and other participants in the electricity market to the provisions of the Act and other Regulatory instruments, for the purpose of achieving the following objectives a. the creation, promotion and preservation of an efficient electricity industry and market and the fostering of a culture of regulatory compliance; b. the facilitation of the swift investigation and resolution of incidences of regulatory non- compliance and the fair and transparent determination of rights and obligations; c. The maintenance of a predictable, stable and effective system for the assessment of compliance in the Nigerian electricity industry and the proper allocation of responsibility; d. The establishment of a system for the deterrence, penalization and application of sanction to acts or omissions which constitute noncompliance with regulatory framework established by the Act and Regulatory instruments made pursuant thereto. 122. In line with the regulation’s enforcement, enforcement process has different stages which include initiation of enforcement process, conduct of investigation, decision and orders of the Commission, enforcement of license conditions, enforcement of market rules etc. Acquisition of Land and Access Rights for Electricity Projects Regulations, 2012: 123. The regulation was issued by NERC in line with the powers conferred on it by the Electricity Power Reform Act 2005. The objectives of these Regulations are to provide a legal and regulatory framework for the acquisition of land and access rights for electricity projects in Nigeria; making provisions for the payment of compensation and resettlement of persons affected by the acquisition of their land for the establishment of electricity projects; and the monitoring and evaluation of project designs of licensees to ensure compliance with environmental standards. It is indicated that the regulations shall apply to acquisition of land and access rights for electricity projects in Nigeria, including projects related to generation, 46 transmission and distribution of electricity. It provides procedure for voluntary and involuntary acquisition of land. It provides among others that a licensee shall not embark or undertake an electricity project on any land unless he has entered into an agreement in writing with the owner or occupier of the land or has entered into any other agreement as may be prescribed by the Commission from time-to-time. There are also other provisions for the resettlement of PAP including preparation of a Resettlement Action Plan for involuntary acquisition of land. It specifically states that a Licensee shall submit a Resettlement Action Plan (RAP) to the Commission, which shall contain measures to improve the livelihoods and standards of living of the project affected persons or at least restore them to pre-displacement levels. 124. The key agencies/institutions in the power sector and their roles are summarized in the Table 4.2 below. Table 4.2: Power Sector Institutions in Nigeria and their Roles: S/No Agency/Institution Description of Role 1 Nigeria Electricity The agency is responsible for the economic regulation of the power Regulatory Commission sector. Two of their key regulatory functions are as follows: (NERC) Licensing: NERC issues license for on and off grid generation of power as well as distribution of electricity to end users. In terms of tariff, NERC manages price regulation. 2 Federal Ministry of Formulating broad policies for the development of power sector. Power Also, coordinates activities within the power sector. 3 Transmission Company An entity, incorporated by government in 2005 and issued license in of Nigeria July 20106, is responsible for the transmission of electricity from power plants to distribution companies, eligible customers and for export. The licensed activities include electricity transmission, system operation and electricity trading. TCN is responsible for evacuating electric power generated by the electricity generating companies (GenCos) and wheeling it to distribution companies (DISCOs). It provides the vital transmission infrastructure between the GenCos and the DISCOs feeder sub-stations. 4 Nigerian Bulk Electricity Government entity responsible for purchasing electricity from Trading PLC (NBET) generation companies under long term power purchase agreements and selling it to distribution companies. 5 Generating Companies The GenCos are one part of the three divisions of the Nigeria power (GenCos) sector value chain. They are in charge of the actual generation of electricity in Nigeria. They are tasked with transforming hydro or gas power into electrical power. There are over 20 electricity generating companies in Nigeria today. However, the top six GenCos providing the country with electricity are Egbin Power Limited, Transcorp Power, Shiroro, Kainji/Jebba, Sapele and Geregu. 6 Distribution Companies The distribution companies are responsible for power distribution in in Nigeria (DISCOs) Nigeria. They provide the connection between customers and the electricity grid. They are responsible for stepping down electricity from the high voltage of 132KV at the transmission level, to the 47 lower voltage levels of 33kV/11Kv and 415KV depending on the category of customer. They are also responsible for marketing and sale of electricity to customers. There are eleven DISCOs in Nigeria each covering a given number of states. 7 Gas Aggregation The GACN is responsible for managing the implementation of the Company of Nigeria domestic gas supply obligation. It also acts as intermediary between (GACN) gas suppliers and purchases in the domestic market. 8 Nigerian Gas Company This is one of the subsidiaries of the Nigerian National Petroleum Limited (NGC) Corporation. It is responsible for the transportation of natural gas through its pipeline network. 9 National Power Training Provider of training for power sector personnel and coordinating Institute of Nigeria training activities in the sector. Source: Adapted, with modification, from N. Saifuddin et al. (2016) 10 4.3 Environmental and Social Systems of the DISCOs: 125. Almost all the DISCOs have some environmental and social systems guiding some aspects of their operations. Few of the DISCOs have fairly robust environmental and social systems that needs some minor updates to fill missing gaps while the majority have weak environmental systems that needs to be updated substantially given the gaps in the current documents and procedures. Some of the DISCOs have two different documents representing environmental and social systems but with some gaps in the two different documents and need to be harmonized and updated. Regarding environmental systems (ES) specifically, many of the DISCOs ES do not provide for environmental assessment or environmental audit and as such have not carried out any environmental assessment or environmental audit for their injection sub-stations and other facilities. Besides, some DISCOs have a HSE manual but the environment aspect is often not adequately accounted for in the HSE manual, while some have policy statements on E&S issues without any details regarding how the policy statements will be operationalized including responsibilities. Also, some of the DISCOs do not have emergency preparedness and response procedures. 126. Regarding social issues, most of the DISCOs do not have procedures for dealing with GBV and SH. In addition, although there are regulations on land acquisition and handling of customer complaints/grievances, most of the DISCOs do not have procedures for land acquisition (although a few, for example JED, indicated that they apply the land acquisition regulation) and some do not have procedures for handling of customer complaints/grievances. Regarding labour management, most of the DISCOs have a robust Human Resource (HR) policy/Conditions of Service Manual. However, some HR policies did not address all the relevant issues, for example trade unions and staff grievances. The details of the environmental and social systems of the DISCOs and the assessment of their strengths and weaknesses and actions required for strengthening and improving the systems are presented in Annex 9. 10 Saifuddin, N., Bello, S., Fatihah, S., and Vigna, K.R. (2016) Improving electricity supply in Nigeria: Potential for renewable energy from biomass. International Journal of Applied Engineering Research, 11, 14 (2016); pp 8322-8339. 48 SECTION V: ASSESSMENT OF BORROWER’S ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEMS 127. This section describes the E&S management systems in place to manage all identified E&S impacts, especially adverse impacts and risks. It describes the main elements of applicable borrower systems and provides an analysis of the acceptability of these systems, considering the level of risk and the extent to which borrower systems and practices are aligned with Bank core principles. The analysis will show the extent to which the applicable systems of the government of Nigeria and the DISCOs are consistent with the core principles and key planning elements expressed in the PforR Guidance Document. It also provides a review of aspects where gaps exist between the two. The assessment was done using the following criteria: i. Strengths of the system, or where it functions effectively and efficiently and is consistent with Bank Policy and Directive for Program-for-Results Financing; ii. Inconsistencies and gaps between the principles espoused in Bank Policy and Directive for Program-for-Results Financing and capacity constraints; and iii. Actions to strengthen the existing system. 128. The summary of the assessments of government and DISCOs systems in line with the core principles is presented in section 5.1. An assessment of the environmental and social systems of the DISCOs, as indicated earlier, was carried out and the summary is also presented in Annex 9. 129. Information from this analysis – and identification of gaps and opportunities/actions – were used to inform the recommendations and Program Action Plan (PAP). 5.1: Summary of Systems Assessment: Core Principle 1: General Principle of Environmental and Social Management Bank Policy for Program-for-Results Financing: Environmental and social management procedures and processes are designed to (a) promote environmental and social sustainability in Program design; (b) avoid, minimize or mitigate against adverse impacts; and (c) promote informed decision-making relating to a program’s environmental and social effects. Bank Directive for Program-for-Results Financing: Program procedures will:  Operate within an adequate legal and regulatory framework to guide environmental and social impact assessments at the program level.  Incorporate recognized elements of environmental and social assessment good practice, including: • early screening of potential effects; • consideration of strategic, technical, and site alternatives (including the “no action� alternative); • explicit assessment of potential induced, cumulative, and trans-boundary impacts; • identification of measures to mitigate adverse environmental or social impacts that cannot be otherwise avoided or minimized; • clear articulation of institutional responsibilities and resources to support implementation of plans; and 49 • Responsiveness and accountability through stakeholder consultation, timely dissemination of program information, and responsive grievance redress measures. Applicability: This is applicable as the PforR program activities will impact on the environment and the impact is deemed to be moderate. The Program has specific activities that will involve rehabilitation and upgrading of existing distribution lines, PT and DT, and increase in new connection which are activities that will impact on the environment. The applicability in terms of specific DLIs is indicated below. Applicable Systems Assessment Gaps (Federal, State Suggestions to Fill DLIs and DISCOs) Gaps/Proposed Mitigation Measures 1. Reduction in 1. Federal EIA regulatory 1. Most of the DISCOs 1. There is a need to DISCOs’ framework aligns well have weak strengthen the metering gap with the Core Principle. environmental environmental and management social management 2. Number of procedures as the HSE systems of most of the new Specifically: manuals have gaps and DISCOs. connections 2. National policies, they are often focused 2. The DISCOs should by DISCOs. regulation and other on health and safety. update their HSE legislation for 2. Some of the DISCOs procedures to cover 3. Kilometres of environmental have weak capacity for relevant aspects of medium management are well environmental environmental voltage (MV) defined. Also, management. management that are distribution institutional systems 3. Some of the DISCOs missing in their HSE lines identifying environment have policy statements Manuals. rehabilitated procedures and on environmental 3. There is need to by DISCOs. legislation to be followed management but did strengthen in the country are well not provide action environmental 4. Reduction in defined. States have their plans and did not management capacity, transformer own environment assign responsibilities in terms of knowledge technical department or directorate, 4. A few DISCOs have through training and losses in who can be contacted for Emergency required personnel, of existing permits or any preparedness and HSE units of the distribution clarifications if procedures while DISCOs. networks necessary. many have weak plans 4. The DISCOs should 3. The national EIA system and procedures for establish a tracking (EIA Act No. 86 of 1992) managing system to monitor provides a emergencies. environmental and comprehensive legal and 5. At the federal and state social risks, regulatory framework for level, there is no performance, environmental and social requirement within consultations, etc. impact assessment that is EIA processes for 5. There is a need for broadly consistent with consulting with local DISCOs to create or the Core Principle 1 of communities or strengthen emergency the Bank Policy and vulnerable people and preparedness plans and Directive. The relevant there is weak coverage procedures so as to be ministries, namely, FME of social issues in the able to effectively and FMARD are aware EIA process. handle emergencies 50 of the need to ensure 6. The capacity of the regarding E&S. compliance with EIA federal ministry of 6. A robust public procedures. environment to consultation strategy is 4. The Power Sector monitor and enforce required to improve Reform Act 2005 and EIA requirements is citizen engagement in accompanying weak. entire EIA process. regulations, for example, 7. Despite NESREA and 7. The Ministry of on resolving customer efforts of States Environment at both complaints, regulations Ministry of the federal and state enforcement, etc., are in Environment, levels should reinforce place to support and enforcement is still its mandate of guide the management of weak and often monitoring activities. E&S issues. targeted at raising Technical staff at the 5. NESREA is also funds to the detriment federal and state levels empowered to enforce of enhancing a safe responsible for compliance with environment. environmental and environmental laws and 8. Despite the existing social management regulations. regulation regarding should monitor and 6. Most of the States resolving customer supervise E&S Ministry of Environment complaints, some of compliance of the have enforcement units the DISCOs have and task force. weak GRM for staff DISCOs at least twice 7. Most of the DISCOs have and customers. a year, environmental HSE guidelines and also and social appreciates the need for management audits environmental every two years. management and compliance. 8. There is a need to 8. Some of the DISCOs strengthen the GRM of have a GRM to facilitate some of the DISCOs the redress of both staff for both staff and and customer complaints. customers. Core Principle 2: Natural Habitats and Physical Cultural Resources Bank Policy for Program-for-Results Financing: Environmental and social management procedures and processes are designed to avoid, minimize and mitigate adverse effects on natural habitats and physical cultural resources resulting from program. Bank Directive for Program-for-Results Financing: As relevant, the program to be supported:  Includes appropriate measures for early identification and screening of potentially important biodiversity and cultural resource areas.  Supports and promotes the conservation, maintenance, and rehabilitation of natural habitats; avoids the significant conversion or degradation of critical natural habitats, and if avoiding the significant conversion of natural habitats is not technically feasible, includes measures to mitigate or offset impacts or program activities. 51  Takes into account potential adverse effects on physical cultural property and, as warranted, provides adequate measures to avoid, minimize, or mitigate such effects Applicability: applicable It is expected that the Program will have moderate impact on natural habitats and physical cultural resources since it directly involves upgrading and rehabilitation of distribution lines across urban and peri urban areas and increase in number of connections through grid and off-grid and mini-grid solutions. The applicability in terms of specific DLIs is indicated below. Applicable Systems Assessment Gaps Suggestions to Fill DLIs Gaps/Proposed Mitigation Measures 2. Number of new 1. Strength of EIA systems are noted 1. Gaps with respect to 1. Suggestions with connections by under DLI 1- 4 above. ESIA systems are respect to ESIA DISCOs. noted under DLI - 4 systems are noted 2. The Government of Nigeria also above as listed under under DLI 1-4 and has introduced a number of forest applicability of core others listed under policies, programmes and principle 1. applicability of core 3. Kilometers of instruments (e.g., the National principle 1. medium Forest Policy 2006, National voltage (MV) Biodiversity Strategy and Action 2. Most of the forest distribution Plan, Nigeria REDD+ project) in laws and edits are 2. DISCOs should lines an effort to reverse the old and outdated develop or update rehabilitated by deforestation trend and facilitate even dating back to their procedures for DISCOs. natural resources management colonial times and vegetation and biodiversity conservation. needs to be updated. management to 3. The country has a National Forest prevent loss of Policy (NFP) aimed at preserving 3. Most of the DISCOs biodiversity through the country ecosystem as well as electricity projects. do not have or have boost the current effort of weak vegetation addressing various climate change management 3. NERC and challenges in Nigeria. procedures. Ministries of 4. Also, most of the State Environment in Governments have forest respective States commissions or forest 4. Most states have not should ensure that departments in their Ministry of implemented DISCOs do not Environment that are responsible community forestry encroach on natural for forest management and initiatives thus, most resources, for biodiversity conservation. communities rarely example, forests 5. The DISCOs will work with the conserve their forest while embarking on Federal and State forest resources and some new connections departments and commissions in community forests through off-grid vegetation management along have been donated solutions. electricity lines to ensure proper for development vegetation management. projects. 6. Federal government and some states have forest edicts, laws and policies to facilitate forestry and 52 natural resources management. 7. Some communities also have community forests and sacred groves and these areas are conserved with the help of government and development agencies and are rarely used for projects, for example, off-grid electricity projects. Core Principle 3: Public and Worker Safety Bank Policy for Program-for-Results Financing: Environmental and social management procedures and processes are designed to protect public and worker safety against the potential risks associated with (a) construction and/or operations of facilities or other operational practices developed or promoted under the program; (b) exposure to toxic chemicals, hazardous wastes, and otherwise dangerous materials; and (c) reconstruction or rehabilitation of infrastructure located in areas prone to natural hazards. Bank Directive for Program-for-Results Financing:  Promotes community, individual, and worker safety through the safe design, construction, operation, and maintenance of physical infrastructure, or in carrying out activities that may be dependent on such infrastructure with safety measures, inspections, or remedial works incorporated as needed.  Promotes use of recognized good practice in the production, management, storage, transport, and disposal of hazardous materials generated through program construction or operations; promotes use of integrated pest management practices to manage or reduce pests or disease vectors; and provides training for workers involved in the production, procurement, storage, transport, use, and disposal of hazardous chemicals in accordance with international guidelines and conventions.  Includes measures to avoid, minimize, or mitigate community, individual, and worker risks when program activities are located within areas prone to natural hazards such as floods, hurricanes, earthquakes, or other severe weather or climate events. Applicability: This is applicable. The program will involve rehabilitation and upgrading of electricity distribution infrastructure including distribution lines, distribution grid transformers (PT and DT), installation of meters, expansion to set-up new connections, and enhanced collection of revenue. The applicability in terms of specific DLIs is indicated below. Applicable Systems Assessment Gaps Suggestions to Fill DLIs Gaps//Proposed Mitigation Measures 1. Reduction in 1. The legal/regulatory 1. The national EIA 1. The Federal Ministry of DISCOs’ system of the country system does not Environment should work metering gap. includes provisions for comprehensively towards improving the EIA protecting worker, encompass aspects system to incorporate 2. Number of community and public of public and worker issues relating to public and new safety. safety. workers’ safety and connections by 2. The DISCOs have HR 2. Although most of the broader ESHS. Meanwhile, DISCOs. policies that guide DISCOs have OHS they should ensure that EIA recruitment, staff procedures, many reports submitted for promotion, are weak and need to review cover social issues 53 3. Kilometers of compensation, staff be strengthened. especially relating to public medium voltage grievance redress 3. Although some and worker safety. (MV) mechanism, discipline DISCOs have distribution etc. guidelines and 3. NESREA has procedure for 2. DISCOs should update lines their OHS procedures and rehabilitated by regulations to protect the handling of public from hazardous hazardous chemicals, manuals to cover all the DISCOs. issues to facilitate safety of chemicals, pesticides, some do not have and agrochemicals clear procedures for workers and the general 4. Increased (National Environmental handling PCBs and public especially regarding collection (Hazardous Chemicals other hazardous handling and disposal of efficiency by hazardous chemicals, DISCOs and Pesticides) chemicals. Regulations, S.I. No 65, 4. Although the especially PCBs. 2014). DISCOs have HR 4. Some of the DISCOs policies, some 3. Provide on-site training to 5. Reduction in have guidelines for policies lack electricity workers, transformer handling of hazardous procedures in contractors and labourers technical chemicals especially specific areas to that will be involved in losses in PCB contaminated oil. facilitate worker rehabilitation and existing 5. The country also has security and upgrading of distribution some legal statutes and performance, for lines and grid transformers distribution provisions to protect example, in areas of and those that will be networks. workers. Some of these GRM, welfare in involved in expanding and include, Labour Act of terms of setting up new connections 7. 2004, the Trade Union participation in trade so that they will be familiar Implementation Amended Act of 2005, union activities. with OHS issues at their of Management and the Employees 5. There is limited workplace. Information Compensation Act of awareness and lack Systems (MIS) 2010. of interest by the 4. There is a need for DISCOs by DISCOs. 6. The electricity workers general public, on to create or strengthen in Nigeria have two public health and emergency procedures and unions (National Union safety issues, plans and so as to be able of Electricity Employees particularly in to effectively handle (NUEE) and Senior relation to exposure emergencies in order to Staff Association of to hazardous protect workers involved in Electricity and Allied materials, use of PPE the rehabilitation works. Companies, that fight to and other safety protect the rights of precautions. 5. There is need for the workers. 6. Lack of awareness of DISCOs to strengthen 7. The federal government relevant authorities’ citizen engagement through has the Ministry of staff to appreciate different channels so as to Labour while most state the need to ensure create awareness regarding governments also have occupational health the entire program Ministries of Labor, and and safety. activities especially these ministries also 7. Emergency rehabilitation of work to protect the preparedness and distribution lines and 54 rights of workers. procedures are non- addition of new 8. The Federal Child’s existing in few connections including Right Act (CRA) (2003) DISCOs why many health and safety measures codifies the rights of have weak plans and during rehabilitation of children in Nigeria. It procedure for distribution lines. has penalties on the use managing of child labour. emergency. Core Principle 4: Land Acquisition Bank Policy for Program-for-Results Financing: Land acquisition and loss of access to natural resources are managed in a way that avoids or minimizes displacement, and affected people are assisted in improving, or at least restoring, their livelihoods and living standards. Bank Directive for Program-for-Results Financing: As relevant, the program to be supported:  Avoids or minimizes land acquisition and related adverse impacts;  Identifies and addresses economic and social impacts caused by land acquisition or loss of access to natural resources, including those affecting people who may lack full legal rights to assets or resources they use or occupy;  Provides compensation sufficient to purchase replacement assets of equivalent value and to meet any necessary transitional expenses, paid prior to taking of land or restricting access;  Provides supplemental livelihood improvement or restoration measures if taking of land causes loss of income-generating opportunity (e.g., loss of crop production or employment); and  Restores or replaces public infrastructure and community services that may be adversely affected. Applicability: This is applicable. The Program will involve the rehabilitation of electricity distribution lines and the addition of new connections which could lead to minor land acquisition for working space without physical displacement. This may also occur during the installation of new feeders, low and medium voltage lines and off- grid connections in order to add new connections to the distribution. The applicability in terms of specific DLIs is indicated below. Applicable Systems Assessment Gaps Suggestions to Fill DLIs Gaps/Proposed Mitigation Measures 2. Number of 1. Nigeria has the Land Use Act 1. The Land Use Act has a lot 1. The DISCOs would new of 1978 which was modified in of limitations regarding land need to strengthen or connections 1990 is the legal basis of land acquisition. Some of these modify their by DISCOs. acquisition and administration include the provision in the guidelines for land but doesn’t include anything Act that the Governor of a acquisition to ensure with regards land donation, State controls all land in the that land acquisition/ consultation prior to land State, the issues of resettlement is 3. Kilometers acquisition, makes no resettlement of project carried out in line of medium provision for livelihood affected persons, poor with the NERC voltage restoration, silent on timing of grievance redress Acquisition of Land (MV) compensation payment, makes mechanism, poor land and Access Rights distribution no provision for compensation rights, among others. for Electricity lines for undeveloped land, 2. Also, most of the DISCOs Projects Regulations compensation include do not have guidelines for and the World Bank 55 rehabilitated depreciation etc land acquisition even when guidelines. by DISCOs. there exists a regulation 2. The DISCOs will guiding acquisition of land prepare and 2. Given the numerous gaps in for electricity projects in implement a project the Act, a Presidential Nigeria. specific resettlement Technical Committee on Land action plan, in line Reform (PTCLR) is working with NERC on issues regarding land regulation and World reform in Nigeria. Bank guidelines, to 3. Acquisition of Land and deal with the Access Rights for Electricity compensation of Projects Regulations, 2012 people that may be provide a legal and regulatory temporary displaced framework for the acquisition during the of land and access rights for rehabilitation works. electricity projects in Nigeria Core Principle 5: Social Considerations - Indigenous Peoples and Vulnerable Groups Bank Policy for Program-for-Results Financing: Due consideration is given to cultural appropriateness of, and equitable access to, program benefits giving special attention to rights and interests of Indigenous Peoples and to the needs or concerns of vulnerable groups. Bank Directive for Program-for-Results Financing:  Undertakes free, prior, and informed consultations if Indigenous Peoples are potentially affected (positively or negatively) to determine whether there is broad community support for the program.  Ensures that Indigenous Peoples can participate in devising opportunities to benefit from exploitation of customary resources or indigenous knowledge, the latter (indigenous knowledge) to include the consent of the Indigenous Peoples.  Gives attention to groups vulnerable to hardship or disadvantage, including, as relevant, the poor, the disabled, women and children, the elderly, or marginalized ethnic groups. If necessary, special measures are taken to promote equitable access to program benefits. Applicability: This is applicable. Note that there are no groups in Nigeria that meet the World Bank's criteria for Indigenous Peoples. However, the assessment examines the systems that address the needs of groups vulnerable to hardships, including women, youths and people with disabilities. It is expected that vulnerable people will be impacted given that the Program involves a utility, electricity, that everyone uses or needs and for the fact it will involve rehabilitation of distribution infrastructure, establishment of new connections, installation of meters, among others, that will involve people of different categories. The applicability in terms of specific DLIs is indicated below. Applicable Systems Assessment Gaps Suggestions to Fill DLIs Gaps/Proposed Mitigation Measures 1. Reduction in 1. Chapter IV of the Nigerian 1. Also, many of the 1. DISCOs should DISCOs’ Constitution contains a variety of DISCOs do not have institute procedures metering gap. fundamental rights set out in procedures for for handling issues Sections 33 - 44. Of particular dealing with related to gender and 56 2. Number of relevance is Section 42, which vulnerable people and vulnerable people. new prohibits discrimination on the PWDs regarding 2. DISCOs as part of connections grounds of ethnic origin, sex electricity issues to their procedure by DISCOs. (gender), religion, or linguistic ensure that they are should have a affiliation. not treated with gender-based 3. Kilometres of 2. Most of the DISCOs have a contempt and violence response medium procedure for consultation with partiality. Committee in voltage (MV) their customers and the general collaboration with distribution public on electricity matters. 2. Most of the DISCOs the respective state lines 3. Most of the DISCOs indicated in do not have adequate institution / other rehabilitated their HR procedures that they are provisions and relevant SEA/SH by DISCOs. equal opportunity employer and procedures for actor that survivals they do not discriminate in against dealing with issues can easily and freely 4. Increased any person as a result of ethnic, that can limit women report to collection creed or religious beliefs, sex, or and youths access to immediately they efficiency by any other considerations. the program, for experience any DISCOs example, SEA and assault. 4. There is a Federal Ministry of SH. 3. States should carry Women Affairs and Social out regular Development that deals with all 3. There is lack of enlightenment 5. Reduction in gender related issues especially as it capacity in Ministries programmes for the transformer concerns the vulnerable especially of Women Affairs public and capacity technical women youths and People living and Social building programs losses in with Disabilities (PWDs). They Development to for staff of existing have a unit that deals with GBV and tackle the issues of gender/women distribution discrimination. Also, most state SEA/SH and other ministries. networks. governments have Ministry of issues relating to 4. DISCOs should . Women Affairs/Gender Affairs and gender and youths embark of extensive Social Development. These which can limit their community-based ministries help to handle the issues access to the enlightenment of GBV and discriminations of program. regarding the 6. Compliance vulnerable people. program and their with NERC 4. There is weak activities to drive Corporate 5. Also, the federal government of knowledge of the inclusive Code of Nigeria has signed many treaties on public especially participation of Governance women issues including the vulnerable groups vulnerable groups in by DISCOs. CEDAW in 1999 and has a gender regarding government the program and in policy. There is also the Violence actions and programs the selection areas Against Persons (Prohibition)Act on electricity reform for extension of new 2015. in Nigeria. connections so as to avoid bias including 6. Several policy statements and ethnic, or religious programmes at the state and federal bias. levels clearly indicate the nation’s commitments to achieving the Sustainable Development Goal 57 (SDG) 5 on gender equality. 7. Many states have laws and frameworks in dealing with violence and discrimination, for example Edo, where Benin DisCo (BEDC) is located, has Violence Against Persons (Prohibition) Law of Edo State 2019, while some states, in addition, have also response teams to deal with GBV for example Lagos State has a Domestic and Sexual Violence Response Team (DSVRT). Core Principle 6: Social Conflict Bank Policy for Program-for-Results Financing: Avoid exacerbating social conflict, especially in fragile states, post-conflict areas, or areas subject to territorial disputes. Bank Directive for Program-for-Results Financing: Considers conflict risks, including distributional equity and cultural sensitivities. e. Applicability: This is applicable. Conflicts may arise between DISCO staff and electricity customers during the rehabilitation of the distribution line, installation of meters, and connection of new customers. Applicable DLIs Systems Assessment Gaps Suggest ions to Fill Gaps/Proposed Mitigation Measures 1. Reduction in 1. The constitution of the 1. Some states and zones in 1. Strengthened DISCOs’ Federal Republic of Nigeria Nigeria can be stakeholder metering gap 1999 (as amended) provides considered a failed state engagement and in Section 17 (3) (g) that “the because of armed grievance redress State shall direct its policy insurgency and banditry mechanisms and towards ensuring that which has left a lot of increased 2. Number of new provision is made for public people homeless while transparency and connections by assistance in deserving cases, many are in internally provide DISCOs. or other conditions of need. displaced persons information and 4. Increased camps. communication collection avenues for 2. Nigeria Federal and State complaints and efficiency by presence is strong throughout 2. Although most of the their resolutions DISCOs the country with well-trained DISCOs have some and also to police and security forces grievance redress correct the 5. Reduction in who maintain the rule of law mechanism and negative transformer and also provides security complaints procedure, impression about 58 technical against bandits and during some of the procedures the DISCOs. losses in existing clashes between farmers and are weak. Even a DISCO distribution herders. Nigeria security recommended only forces are also fighting informal approach. 2. DISCOs should networks. work with the armed insurgency and has . almost degraded the groups. local authority in There is also a justice system 3. There is disdain for their sub-units to with courts where people can DISCO officials by the set up local level seek redress. customers and the (through relevant 3. The federal government also general public probably traditional rulers/ has the public complaints because of the epileptic institution, State commission where people power supply and Ministries of can make complaints alleged billing of Chieftaincy regarding administrative customers when they did Affairs and LGA injustices. not receive electricity. Chairmen) 4. The NERC has a regulation, Thus, efforts by DISCOs conflict Customer Complaints to disconnect defaulting resolution Handling: Standards and customers have led to committee to Procedure 2006, which serious quarrels and address conflict guides all distribution conflicts. related to the Licensees in Nigeria in terms program. of resolving customer complaints 3. DISCOs should 5. The NERC also has the strengthen their Customer Service Standards GRM to facilitate of Performance for resolution of Distribution Companies conflicts. Regulation which guides all the Licensees in Nigeria to ensure quality standards. 6. Some of the DISCOs have GRM mechanisms for both staff and customers. 59 SECTION VI: RECOMMENDATIONS AND ACTIONS 130. This section recommends measures that will be taken to strengthen system performance in line with the gaps and risks identified in the system assessment section to ensure that the Program interventions are aligned with the Core Principles of Bank Policy for Program-for- Results financing. The identified key areas are elucidated below. These actions may be further refined and adjusted during the consultation process appraisal and at the midline review during implementation of the Program. 6.1 Environmental and Social Summary and Recommendations: 131. Although Nigeria has a well-defined environmental and social management system that aligns with the core principle on environmental assessment, significant gaps still remain while the guidelines and policies are rarely enforced. For example, the EIA process in Nigeria does not cover the social aspects as it should. Often impacted communities and vulnerable groups are not consulted during the EIA process and even when they are consulted at the beginning, they are not carried along during the review and approval process thus, their concerns may not be reflected in EIA document. Besides, the monitoring of EIA implementation is weak as there is no tracking system to monitor environmental and social risks, performance. 132. At the level of the DISCOs, although some have procedures and manuals for environmental management in the form of HSE procedures, many have a lot of gaps and did not cover issues that are critical for management of social risks. While some have good coverage of health and safety issues, that of environment is weak. For example, issues relating to environmental assessments, waste management, vegetation management, and handling storage and management of hazardous chemicals, for example, PCBs, among others are not covered. Some have duplicates of environmental procedures which did not cover the issues while some have one-page policy statements which did not provide the detail of application and responsible officers. Although electricity is often associated with emergency situations, some of the DISCOs do not have robust strategies and procedures for handling emergencies. Also, there is weak environmental management capacity, in terms of knowledge and required personnel, of HSE units of the DISCOs. 133. Concerning appropriate procedures and policies for the management of social risks, it is important to note that some of the DISCOs have some well documented procedures, for example, Human Resources Policy (HRP) and Stakeholder Engagement Framework (SEF) for the management of social risks. Although most of the DISCOs have different procedures and manual for management of social issues and risks with different names, for example, Occupational Health and Policy (OHS); Land Acquisition and Resettlement Framework (LARF); Sexual Harassment and Inappropriate Relationship Policy, Security Policy Manual, among others, some of these polices still have some gaps, some are duplicated and thus need to be harmonized, updated and strengthened while some do not exist in some DISCOs. 134. For example, a DISCO has a policy and procedure to deal with issues of sexual harassment, the penalties are not clearly stated for specific offenses; besides the sexual harassment policy does not cover issues of GBV. Also, a DISCO has a HR policy but it does not contain recruitment procedures and has a different document on recruitment. Another DISCO has HR 60 policy and procedure and a policy and procedure for handling customer complaints, it does not have a policy for dealing with GBV and SH. In addition, another DISCO, while it has a brief section on GRM for staff, it did not provide any guideline but indicated that it was in the interest of the company and employees to resolve issues relating to them in a mutually acceptable manner. The DISCO also indicated in another document (tagged processes and procedures) that it encourages employees to resolve grievances informally with their line Managers and or Heads of Department. Also, a DISCO has no provision for pension scheme as stipulated in the Pension Reform Act. They only indicated that retiring employee will be paid basic salary 3 months in lieu. The company also does not have a detailed procedure for handling GBV and SH. Furthermore, in terms of welfare of workers, another DISCO provided detailed action that should be followed in case of crisis and picketing by Union Groups around the business premises; however, the same DISCO did not provide for Trade Union activities in its peoples Handbook. However, there are DISCOs that stand out as having a relatively robust social system, namely IE, AEDC, and BEDC 135. Based on the environmental and social assessments, some recommendations were made as follows: 136. BPE, NERC in collaboration with the Federal Ministry of Environment should develop a protocol/standard in line with WB and Nigeria requirements that will serve as E&S benchmark to guide DISCOs in updating their E&S instruments and systems. Each DISCO will take into consideration annex 9 and the identified gaps / gap filling actions in updating their system in line with the protocol/standard that will be developed. 137. DISCOs should develop, update, harmonize and strengthen their E&S instruments and systems in line with the benchmark of E&S for DISCOs. 138. Conduct annual monitoring of progress and performance on environmental and social issues, especially regarding the compliance of the Program activities with the environmental and social standards and procedures. 139. DISCOs in collaboration with BPE should provide on-site training/capacity building to electricity workers, contractors and labourers that will be involved in rehabilitation and upgrading of distribution lines and grid transformers and those that will be involved in expanding and setting up new connections so that they will be familiar with OHS issues at their workplace/site. 140. DISCOs in collaboration with BPE should work with the local authority in their sub-units to set up local level (through relevant traditional rulers/ institution and LGA Chairmen) conflict resolution committee to address conflict related to the program. 141. DISCOs in collaboration with BPE should embark on community-based enlightenment campaign to strengthen citizen engagement through different channels, produce and distribute leaflets and brochures to create awareness and familiarize the citizens of the Program. 61 142. BPE and DISCOs should engage suitable Environmental and Social Risk Management Specialists (could be a consultant) as part of the Program Implementation Team in a manner that will be satisfactory to the Bank. 143. The DISCOs in collaboration with BPE should institute a gender-based violence response committee to ensure that that survivors can easily and freely report to immediately they experience any assault 144. Following the recommendations, the breakdown of actions to be included in the Program Action Plan (PAP) with indicative timeline, responsibility for implementation and indicators for measuring the completion of such actions are detailed in the Table 6.1 below. The PAP will be part of the verification protocol by BPE and IVA. Table 6.1: Program Action Plan (PAP) for Environmental and Social Management: Action Description Due Date Responsible Completion Actions to be include Party Measurement in PAD PAP / DISCOs IPAP Develop a protocol/standard Prior to signing BPE Document acceptable To be included in that will serve for on lending to the Bank containing PAD PAP benchmarking E&S system, agreement / E&S benchmarks for performance and M&E of shareholders DISCOs DISCOs (including but not loan agreement limited to OHS, community with each health and safety, e-waste and DISCO. hazardous waste management and disposal, SEA/SH, resettlement. Build the capacities of the During Project BPE Records of trainings To be included as DISCOs in terms of Implementation part of action 5 of the environmental and social PAD PAP and safeguards of WB and DISCOs IPAPA Nigeria. Develop, update, harmonize During Program All DISCOs Copies of reviewed To be included as and strengthen E&S Implementation documents, part of Action 5 of instruments and systems in documented process of the PAD PAP and line with the benchmark of review (review DISCOs IPAP. E&S for DISCOs taking into committee list, consideration annex 9. minutes of meeting, or letters of appointment of Consultants, TOR used in engaging the consultant or review committee). Conduct annual monitoring of At the end of every BPE / IVA Monitoring report, To be included in the progress and performance on year Minutes of meeting verification protocol environmental and social during monitoring and DISCO’s IPAPs. issues, especially regarding exercise, pictures the compliance of the taken during 62 Program activities with the monitoring. environmental and social standards and procedures Provide on-site During Project All DISCOs Submit Capacity To be included as training/capacity building to Implementation /Training plans part of item 5 of PAD electricity workers, /Modules, Lists of PAP and DISCOs contractors and labourers so participants, pictures IPAP they can be familiar with during training OHS issues at their program. workplace/site.11 Set up local level (through Prior to All DISCOs, List of committee To be included as relevant traditional rulers/ rehabilitation of LGA members, minutes of part of item 5 of PAD institution and LGA distribution lines / Chairmen, committee meetings, and DISCOs IPAP Chairmen) conflict resolution installation of Ministry of photos of inauguration committee to address conflict meters. Local of committee related to the program. Government members, attendance and list at committee Chieftaincy meetings. Affairs. Embark on community-based Prior to All DISCOs, Copies of radio and To be included as awareness-raising campaign commencement of BPE television jingles, part of item 5 of PAD and citizen engagement the rehabilitation copies of leaflets and PAP and DISCOs through different channels, works of the lines brochures, photos of IPAP produce and distribute leaflets town hall meetings and brochures so as to create awareness and familiarize the citizens of the Program. Engage suitable Prior to program BPE, All Letters of appointment To be included as a Environmental and Social implementation / DISCOs of standalone action in Risk Management Specialists prior on lending to Consultants/Specialist the PAD PAP and at – one E&S per each DISCO specific DISCOs s, TOR for DISCOs IPAP (as (Consultants) as part of the engagement of condition for signing Program Implementation consultant, CV of shareholders loan Team in a manner that will be consultant, Annual agreement. satisfactory to the Bank. reports of activities, and maintained throughout the life of the program Institute a gender-based During program BPE, All List of Committee To be included as violence response implementation s DISCOs Members, document part of item 5 of PAD Committee detailing the PAP and as part of operations of the DISCOs IPAP and at committee approved BPE level by top management. Prepare site specific E&S Prior to BPE, All Relevant safeguards To be included in the safeguards instruments commencement of DISCOs instruments. PAD PAP and as relevant to rehabilitation of civil works/ DISCOs IPAP 11 The program IPF/TA component include capacity building activities to strengthen the DISCOs to manage environmental and social risk 63 meters, transformers, rehabilitation rehabilitation of lines etc. 64 SECTION VII. SUPPORTING ANNEXES AND REFERENCE DOCUMENTS Annex 1: Applicability of Core Environmental and Social Principles (CP) to Nigeria Distribution Sector Recovery Program (DISREP) Disbursement Linked Indicators (DLIs) Result Area DLI CP1 CP2 CP3 CP4 CP5 Vulnerable CP6 Environment Natural Habitats Public & Worker Land groups Social Conflict Safety Acquisition 1. Improved 1. Reduction This is applicable as Not Applicable This is applicable This is not Applicable. There is This is DISCO in DISCOs’ installation of new as vegetation and as public and applicable as a possibility of indirectly operational metering gap meters can pose natural habitats worker safety may constructions exclusion of applicable as performance environmental risk due will not be be affected during that will lead to vulnerable groups, citizens may to possible sparks and disturbed during the installation of land acquisition ethnic bias and elite tamper with fire accidents. the installation of meters especially will not be capture during the installed meters meters in giving the danger carried out installation of meters to evade Indirectly, it is also households and associated with under this DLI. especially if limited charges and applicable. Smart distribution electricity. number of meters thus result in meters, if installed, can transformer level. are available. There conflicts with significantly benefit the is also possibility of DISCOs, environment as it would gender-based arrests of lead to reduced violence (GBV) and electricity electricity consumption sexual harassment thieves by law which will in-turn lead (SH) during enforcement to reduced use of fossil installation of meters agencies and fuels and reduced in homes of prosecution of emission of greenhouse customers or in offenders. gasses and other private offices. pollutants. In addition, there could also be additional climate co- benefits with increased distribution efficiency especially due to reduction in technical losses and rational use of energy associated with effective metering. Thus, 65 Result Area DLI CP1 CP2 CP3 CP4 CP5 Vulnerable CP6 Environment Natural Habitats Public & Worker Land groups Social Conflict Safety Acquisition the DLI aligns with the Multilateral Development Banks’(MDB) list of eligible mitigation activities under Category 2.1: Retrofit of transmission lines or substations and/or distribution systems to reduce energy use and/or technical losses including improving grid stability or reliability; as well as Category 3.2: Energy efficiency improvements in existing commercial, public and residential buildings. 2. Number of This is applicable as the This is applicable This is applicable Land acquisition Applicable. There is This is new installation of new as the installation as public and is envisaged a possibility of indirectly connections by feeders into underserved of new feeders worker safety may under this DLI. exclusion of applicable as DISCOs areas near the existing into underserved be affected during There could be vulnerable groups citizens may distribution areas near the the installation of temporary ethnic bias and elite tamper with infrastructure under this existing new feeders, displacement of capture while new DLI will result in distribution medium and low people during increasing connections increased noise level and infrastructure voltage lines and the installation connections and especially as air pollution from heavy may lead to connection of new of new feeders, identification of they may want duty vehicles that will be cutting down of customers low and medium underserved areas to to tap used in the operation. vegetation and especially given voltage lines and be installed with electricity On the other hand, there impact on fauna the danger off-grid new feeders and illegally. This could also be climate co- species thus connections transformers. There may result in 66 Result Area DLI CP1 CP2 CP3 CP4 CP5 Vulnerable CP6 Environment Natural Habitats Public & Worker Land groups Social Conflict Safety Acquisition benefits with increased affecting associated with (especially off- is also possibility of conflicts with distribution efficiency, biodiversity. electricity. grid solar GBV and SH during DISCOS, reduced use of fossil fuel systems) that extension of power arrests of those powered electricity may be part of to underserved areas involved in generators by the package. and localities. electricity theft households and by law businesses, possible use enforcement of renewable energy as agencies and the new connections prosecution of could be through the offenders. distribution network or through mini-grid or stand-alone systems, including renewable energy-based systems. This DLI aligns with MDB list of eligible mitigation activities under Category 1.1: Wind power and Solar power, Category 1.3: New information and communication technology, smart grid and mini grid, as well as Category 3.2: Energy efficiency improvements in existing commercial, public and residential buildings. 3. Kilometres This is applicable as This is applicable This is applicable Land acquisition Applicable. There This is not of medium there could be noise and as the as the is envisaged could be bias in applicable. voltage (MV) air pollution, soil and rehabilitation of rehabilitation of under this DLI. choosing locations 67 Result Area DLI CP1 CP2 CP3 CP4 CP5 Vulnerable CP6 Environment Natural Habitats Public & Worker Land groups Social Conflict Safety Acquisition distribution groundwater pollution distribution lines distribution lines Some people where distribution lines and waste problem due could lead to will pose danger near the networks will be rehabilitated to rehabilitation works cutting of to the public and distribution lines rehabilitated. The by DISCOs and possibly from debris vegetation and workers that will may be DISCOS may for examples old wires, loss of flora and be involved in the displaced choose locations fittings could be a source fauna and hence rehabilitation temporarily where customers use of waste. On the other loss of work. during the more electricity and hand, there could be biodiversity. rehabilitation pay more money and environmental co- work. neglect areas where benefits due to increased poor and vulnerable distribution efficiency people reside as the and reduced use of fossil returns from the fuel powered electricity areas will be less. generators by Indirectly, improved households and electricity supply businesses. This is will enhance considered part of the income, and reduce Multilateral poverty and the Development Banks’ vulnerability of (MDB) list of eligible households to mitigation activities shocks. There is also under Category 2.1: possibility of GBV Retrofit of transmission and SH during lines or substations rehabilitation of and/or distribution distribution lines systems to reduce given the influx of energy use and/or workers to the technical losses localities where including improving grid rehabilitation will be stability or reliability; carried out. Category 3.2: Energy efficiency improvements in existing commercial, 68 Result Area DLI CP1 CP2 CP3 CP4 CP5 Vulnerable CP6 Environment Natural Habitats Public & Worker Land groups Social Conflict Safety Acquisition public and residential buildings as well as Category 3.3: Improvement in utility- scale energy efficiency through efficient energy use and loss reduction, or resource efficiency improvements. 4. Increased This is directly not Not Applicable This is applicable This is not This is applicable There could be collection applicable as there are as there are no as safety of applicable as indirectly as conflicts due to efficiency by no physical works physical works workers may be constructions vulnerable groups Disconnection DISCOs supported by the DLI. supported by the threatened when that will lead to may have increased of customers However, this is DLI. Disconnecting land acquisition access to electricity that owing or applicable indirectly as customers that will not be with its associated those that increased and effective have not paid or carried out benefits since tampered with collection of electricity those that under this DLI. wastage of meters. charges from customers tampered with electricity will be will Discouraged meters/involved in reduced due to excessive use of electricity theft increased collection electricity which in turn especially if smart efficiency by lead to the increase use meters are not DOSCOS. Also, of fossil fuel that will used. vulnerable people increase carbon may not have the emissions. money to pay and such may not have access to electricity. Enabling 5. Reduction There could be air and This is not This is applicable This is not This is not Indirectly there diversificatio in transformer ground water pollution applicable as as the applicable as applicable. could be n of technical due to possible leakage natural habitat rehabilitation of constructions conflict commercial losses in of PCB contaminated will not be the PT and DT that will lead to between transformer oil. The affected. will pose danger land acquisition contractors 69 Result Area DLI CP1 CP2 CP3 CP4 CP5 Vulnerable CP6 Environment Natural Habitats Public & Worker Land groups Social Conflict Safety Acquisition options for existing rehabilitation of Power to the public and will not be responsible for DISCOs to distribution Transformers (PT) and could impact on carried out DT and PT supply their networks. Distribution worker safety under this DLI. repairs/rehabili demands Transformers (DT) will given the nature of tation and the facilitate loss reduction electricity. DISCOs if the and distribution Secondly, workers contractors are efficiency with some may be exposed to incompetent climate co-benefits. The the danger of PCB and unable to DLI aligns with the oils in old PT and repair the MDB list of eligible DT. equipment. mitigation activities under Category 2.1: Retrofit of transmission lines or substations and/or distribution systems to reduce energy use and/or technical losses including improving grid stability or reliability, as well as Category 3.3: Improvement in utility- scale energy efficiency through efficient energy use and loss reduction, or resource efficiency improvements. 3. 6. Compliance This is directly not Not applicable as This is not This is not This may be Strengthened with NERC applicable as there are activities for the applicable as applicable as applicable as women governance Corporate Code no physical works achievement of public and constructions may be marginalized and of Governance supported by the DLI. this DLI will not workers’ safety that will lead to in appointment of transparency by DISCOs. However, this is impact on natural will not be land acquisition top management in indirectly applicable. A habitats. impacted. will not be the DISCOS. There 70 Result Area DLI CP1 CP2 CP3 CP4 CP5 Vulnerable CP6 Environment Natural Habitats Public & Worker Land groups Social Conflict Safety Acquisition strong governance will However, carried out is also possibility of boost the confidence of indirectly, an under this DLI. GBV and SH in investors in the DISCOS efficient appointment of and will also facilitate governance persons into distribution efficiency. system will ensure managerial This will in turn result in that workers safety positions. reduced carbon emission is guaranteed in and climate co-benefits. ensuring distribution efficiency. 7. This is indirectly Not applicable as This is applicable This is not This is not This is not Implementation applicable as the activities for the as the MIS system applicable as applicable. applicable. of Management implementation of achievement of will facilitate constructions Information management this DLI will not incident recording that will lead to Systems (MIS) information systems by impact on natural and management land acquisition by DISCOs DISCOS will enable habitats. which will help will not be DISCO management to protect the worker carried out operate on the basis of and the public under this DLI evidence-based, from dangers informed decision associated with making. This will electricity; enhance the efficiency supervisory of the DISCOS and thus control and data efficiency in power acquisition distribution. This DLI system, and works aligns with MDB list of management eligible mitigation system which will activities under Category also facilitate 1.3: New information proper and communication management and technology, smart grid worker protection. and mini grid, as well as Category 3.2: Energy 71 Result Area DLI CP1 CP2 CP3 CP4 CP5 Vulnerable CP6 Environment Natural Habitats Public & Worker Land groups Social Conflict Safety Acquisition efficiency improvements in existing commercial, public and residential buildings. 72 Annex 2: Preliminary Benefits and Risk Matrix PDO Result Area DLIs Environmental and Social Benefits Environmental and Social Risks/Risk Rating To improve 1. Improved 1. Reduction in The overall environmental and social The environmental and social risks is financial and DISCO operational DISCOs’ metering gap benefits are expected to be significant. The deemed to be moderate. Environmental technical performance PforR will facilitate increased distribution risks will be associated with rehabilitation performance of the efficiency especially due to reduction in of power distribution infrastructure. The electricity technical losses; reduced consumption of potential environmental risks include noise, distribution power by citizens leading to reduced use of air and ground water pollution as a result of companies. fossil fuels in power generation and reduced use of heavy machines and lubricants during greenhouse gas emission; improved the rehabilitation work. The rehabilitation of distribution efficiency will also result in distribution infrastructure and increase in reduced use of petrol and diesel generators new connections through grid or off-grid by citizens there by reducing the systems will impact on flora and fauna and consumption of fossil fuels and thus thus result in loss of biodiversity especially reduced emission. Improved efficiency and where there is improper vegetation reliability of power will result to increase in management along distribution lines. The the number of hours in which power is rehabilitation work could pose a danger to available for consumers. This will lead to public and workers safety given the nature increased income and poverty reduction as of electricity (could result in shocks, more hours are available for work for electrocution or fires) especially if poorly individuals and small businesses which handled. Rehabilitation of the distribution originally could not afford petrol- and lines may also result in some minor land diesel-powered generators. Also, it will acquisition and temporary displacement of increase opportunities for children to study people around the distribution lines. There with better outcomes in education and also is also the possibility of GBV, SEA and SH 2. Number of new improve development outcome for women during rehabilitation, installation of meters connections by and girls. Increase in new connects and recruitment of new connections by DISCOs especially through off-grid solar power DISCOS. Also, increasing the number of has a lot of climate co-benefits as it will connection, especially through off-grid help in climate change mitigation. connections may also lead to the destruction 3. Kilometres of of flora and fauna and displacement of medium voltage (MV) people. Increased collection efficiency will lead to distribution lines reduced consumption of electricity as There is also a possibility that the DISCOs rehabilitated by consumers would be more careful to avoid do not have the capacity to manage DISCOs wastage. This will in turn lead to reduction 73 PDO Result Area DLIs Environmental and Social Benefits Environmental and Social Risks/Risk Rating in the use of fossil fuels and thus reduce environmental and social risks. This 4. Increased collection carbon emissions. situation may pose a danger to the safety of efficiency by DISCOs workers, the public and environment. The achievement of this DLI may cause conflict between DISCO customers and workers as customers may prevent electricity workers from disconnecting their lines when in debt or when they indulge in electricity theft or tampering with meters. There is also a possibility of SH as electricity workers may have the opportunity to enter homes of customers. Other risks associated with the program is security risk, especially in the States in the North East and North West Nigeria where there is armed insurgency and banditry, and in States where there have been incessant clashes between famers and herders. These conflicts have affected the entire social fabric across the country and could prevent the execution of the PforR program. 2. Enabling 5. Reduction in Rehabilitation of PT and DT will lead to the There is also danger associated with diversification of transformer technical reduction of ATC&C losses, improved rehabilitation of power transformers and commercial options losses in existing efficiency and reliability of power. This will distribution transformers especially as for DISCOs to distribution networks result to increase in the number of hours in transformer oils contaminated with supply their which power is available for consumers and Polychlorinated Biphenyls (PCB) could leak demands . thus increased income and poverty into the environment or become threats to reduction as more hours are available for the safety of workers. work for individuals and small businesses which originally could not afford petrol- and diesel-powered generators. 74 PDO Result Area DLIs Environmental and Social Benefits Environmental and Social Risks/Risk Rating 3. Strengthened 6. Compliance with Effective governance and the There could be GBV, SEA and SH in governance and NERC Code of implementation of MIS will facilitate appointment into managerial position and transparency Corporate Governance enhanced performance of the DISCOs and this may affect the performance of the by DISCOs. thus distribution efficiency with all its DISCOs. associated benefits. In addition, 7. Implementation of implementation of MIS will enhance Management incidence recording and data capturing Information Systems which will provide information needed to (MIS) by DISCOs. avoid accidents and ensure worker and public safety. 75 Annex 3: Information and Documents expected from DISCOs to inform the preparation of ESSA 1. The feasibility report submitted to BPE and NERC during the bidding and setting up of the DISCO (In the feasibility report, DISCOs indicated how they will manage electricity distribution, the type of technology and practices they will deploy in order to reduce losses in distribution and enhance collection of electricity bills). 2. The DISCO’s Strategic Plan (if any) and network details (capacity in terms of installations, network capacity, coverage, etc.) 3. DISCO’s operations manual detailing the staffing including qualifications of key staff, functions & responsibilities or duties, mandate of the different units and management officers in the DISCO and capacity to deal with environmental and social issues including assessments, etc. 4. Document on staff and workers code of conduct 5. Document depicting DISCO’s health, safety policy 6. Document detailing DISCO’s health, safety and environment guidelines. 7. Document detailing DISCO’s incident, accident and log book for accidents and near misses. 8. DISCOs annual reports for the past five years. 9. Document on laws, regulations and policies guiding the DISCOs operations. 10. Customer relations manual/document if any. 11. DISCO’s personnel policy and guidelines – this is expected to contain recruitment policies, personnel management guidelines etc. 12. ESIA document prior to commencement of operations, Environment Audit reports, and other environment documents submitted to state and federal ministry of environment and to NESREA. 13. Policy and procedure on or guiding land acquisition and acquisition of right of way 14. Occupational health and safety policy and procedure 15. Policy and procedure on gender and gender-based violence if any 16. Document on grievance redress mechanism (GRM) applied by the DISCOs if any. 17. Relevant legal framework; 18. EIA Certificate 19. Organogram depicting members of Management Team of DISCOs 20. Security Policy / documents 21. Documents / policy for Social Management plan/ procedure / Land acquisition and resettlement process 22. Documents on stakeholder’s identification and engagement 23. Waste management procedures 24. Broad Environmental and Social Policy operation 25. Performance Improvement Plan (PIP) 76 Annex 4: Preliminary Brief and Questions for consultation with 11 DISCOS The DISCOS systems will be examined in line with the six core principles of PforR bearing in mind the three Result Areas and seven DLIs. The Program (DISREP) will involve rehabilitation of distribution lines, which may lead to displacement of people already using the right of way, may be illegally. This may lead to resettlement of the individuals or micro businesses. It will also result to some environmental and social risks. Increasing collection of bills may result to conflicts etc. Rehabilitation of distribution lines may result in destroying flora and fauna (natural habitats). DISCOs must have plans to deal with environmental and social issues that may be triggered by the Program. Questions 1. Does your DISCO have Environment guidelines? If available, can you provide a copy? 2. Do you have an Environmental and Social Management Operations Manual? If you have, please provide a copy? 3. When you install new equipment (for example transformers and base stations) do you conduct an EIA? 4. Can we have samples of your EIAs? 5. Do you have OHS guidelines? Provide a copy. 6. Do you have a social management plan? 7. What do you do to ensure that the safety of the public is guaranteed? 8. Do you have a public enlightenment and consultation plan? 9. Do you have a waste management plan? 10. Do you have a recruitment and personnel manual? 11. How do you ensure equal opportunity in your recruitment? 12. What is the percentage of men versus women in your DISCO? 13. Can we have your staff list distributed across gender? 14. How do you ensure that PWD’s are not discriminated against in your recruitment? 15. How do you deal with issues of grievance- Have you instituted a grievance redress mechanism? 16. How do you deal with the issue of resettlement when you want to carry out installations that will require land acquisition? 17. How do you deal with issues of conflict with host community or with consumers? 18. How do you deal with conflicts among staff? 19. Do you have a security policy? 20. Do you have a document that is readily available to staff regarding chain of command/reporting in your DISCO? 21. How do you ensure that conflicts are avoided in contracts? 22. Do you have a procurement guideline/manual to guide investors? 23. Are their guidelines/ rules regarding succession/ change of top management to avoid conflicts and discrimination in line with gender/other issues? NB: IN ADDITION TO OTHER DOCUMENTS WE REQUESTED, PLEASE SUPPLY YOUR PERFORMNACE IMPROVEMENT PLAN 77 Annex 5: Nigeria Distribution Sector Recovery P for R Consultation Notes Item Description Name of Area where presentation was conducted Online Virtual Meeting via Microsoft Teams with the stakeholders of Nigeria Distribution Sector Recovery PforR DISCO states: Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt and Yobe. Dates September 14 - 18, 2020 Language of Communication English Summary of Matters Discussed Opening Remarks A brief overview of the proposed project was presented, structure / expectation on the ESSA and the purpose of the consultation was introduced to the stakeholders at the consultation meeting by the E&S team from the World Bank. Questions to stakeholders Stakeholder Responses 1. Does your DISCO have Environment Abuja guidelines- If available provide a copy? g. Environmental guidelines are developed by statutory 2. Do you have an Environmental and Social agencies, not directly by DISCOs. All guidelines Management Operations Manual- If you regarding environment for the AEDC are followed. have please provide a copy? There is an Environmental and Social Management 3. When you install new equipment (for Operations Manual which guides AEDC operation. A example transformers and base stations) do you conduct an EIA? copy would be made available later. h. 4. Can we have samples of your EIAs EIAs are not conducted because no project has triggered a full-scale EIA. 5. Do you have OHS guidelines? – Provide a copy. i. 6. Do you have a social management plan? Guidelines on OHS are developed by statutory 78 agencies, not in-house. 7. What do you do to ensure that the safety of the public is guaranteed? j. There is a social management plan. A copy would be 8. Do you have a public enlightenment and made available consultation plan? k. 9. Do you have a waste management plan? To ensure the safety of the public, frequent inspections are carried out on equipment to ensure public safety. Similarly, sensitization and town hall meetings are 10. Do you have a recruitment and personnel manual? done while, safety advisories are placed on vehicles, churches and other public areas. They have a recruitment and personnel manual and they ensure 11. How do you ensure equal opportunity in equal opportunity during recruitment. your recruitment? 12. What is the percentage of men versus women in your DISCO? Information on staff, gender distribution, percentage and measures against discrimination of PWD would be 13. Can we have your staff list distributed across shared later. gender? 14. How do you ensure that PWD’s are not There are GRMs in place as well. discriminated against in your recruitment? The resettlement framework is embedded in the social 15. How do you deal with issues of grievance- management framework. Have you instituted a grievance redress mechanism? Information on how issues of conflict with staff and 16. How do you deal with the issue of host communities would be shared. As well as on their resettlement when you want to carry out security policy and document regarding chain of installations that will require land command and reporting for staff. acquisition? 17. How do you deal with issues of conflict with The supply chain department and procurement host community or with consumers? department oversee contracts and procurement. 18. How do you deal with conflicts among staff? There is a succession plan in place, and this would be made available later. 19. Do you have a security policy? 79 20. Do you have a document that is readily Right of Way acquisition is done by specific regulatory available to staff regarding chain of guidelines. The FCTA has administration in charge of command/reporting in your DISCO? land regulations and the master plan is used at a large scale for the FCT, for other states (like Niger) certain 21. How do you ensure that conflicts are avoided acquisitions are done with relevant agencies based on in contracts? emerging legislations. Compensation is also carried out based on the case at hand. Engagement is done largely across board. Also, the AEPB handle trees encroaching 22. Do you have a procurement developments. guideline/manual to guide investors? l. 23. Are their guidelines/ rules regarding succession/ change of top management to Benin: avoid conflicts and discrimination in line The DISCO has Environment guidelines and would with gender/other issues? share later. EIAs are not currently conducted, but this is a work in progress. The DISCO has a social management plan. Public awareness is carried out with use of signage and other mediums. Also, frequent checks on equipment used ensures public safety. There are also several means by which they conduct public enlightenment. There is a waste management plan in place, on which they interface with the state Ministry of Environment. They have an encompassing manual which includes recruitment and personnel. Equal opportunity is ensured through open casting/vacancy for jobs. 80 The staff percentage is largely male. More information on this would be shared based on departments. Largely PWDs are not considered, but depending on the form of the disability, an alternative job role could be offered. At unit levels and state levels, grievances are addressed with various committees that handle staff grievances. The commissions guidelines address the customers’ grievances. These are still progressing, however. Land acquisition is majorly carried out by statutory state bodies and agencies. Issues of conflict with host community are dealt with appropriately. Conflicts among staff are handled in accordance with the HR manual. There is a document that speaks to the aspect of security. Conflicts regarding contracts are addressed in government procedures. There are guidelines on investment and to investors. 81 There are guidelines/ rules regarding succession/ change of top management to avoid conflicts and discrimination. Pension is paid to staff and also unions are interacted with. There are not many cases of sexual harassment. BEDC has females from the board with the inclusion of a female Non-Executive Director (Mrs. Millicient Osai), also worthy of mention is that BEDC is the only DisCo with a female CEO / Managing Director for 6 years. Also, there are 2 female executive management officers in key roles, the Chief Agency & Channels Officer (Felicia Nlemoha) and the Chief Corporate Services Officer (Kunbi Labiyi) Eko: There is an environmental policy as well as a social management plan. EIAs are conducted before equipment installation . There are OHS guidelines and social management plan in place. Safety of the public is led by the safety unit and work with Lagos state on such issues as Right of Way. Physical engagement and media awareness are also done to ensure that they relocate in good and safe time. There is a public enlightenment and consultation plan. There is a waste management plan. 82 There is a recruitment and personnel manual; this is structured under 10 business districts. Equal opportunity is ensured through various departments and verification processes overseen by the Human Resources, whose policy is to ensure equal opportunity. Gender distribution in the DISCO is fair. It is ensured that PWDs are not discriminated against. Grievance redress is carried out in the DISCO, anonymous reports can be sent in on this. Resettlement is done in conjunction with government agencies to ensure title documents are in place. Community leaders are contacted directly via the Lagos state government and have a good rapport with these leaders so that conflicts are minimized. Conflict with staff are rare, but conflicts are resolved by panels set up by applying conditions of service and existing laws. The DISCO has a security policy. There is a document available to staff regarding chain of command and reporting in the DISCO under the internal policies. 83 Contracts are drawn up to ensure that conflicts are avoided. There is a procurement guideline/manual to guide investors. There are guidelines/ rules regarding succession/ change of top management to avoid conflicts and discrimination in line with gender/other issues. Enugu: Yes, there are Environment guidelines, they work with the State Ministry Environment as well. EIAs are conducted for installations to be done. Samples would be provided later. They have OHS guidelines. There is no social management plan in place. In construction they ensure to comply with the NESSE. Also awareness is carried out to the public physically and by media. Cease and desist letters are sent out to those who construct under power lines. Warning signs and fliers are also mounted for electricity hazards and precautions, they also conduct network inspection monitoring. They have a waste management plan available. They have a recruitment and personnel manual which would be sent later. 84 Equal opportunity is ensured via online application, shortlisting is done, and job adverts are done widely. There is a staff distribution of 26% men and 72% women. PWDs are not discriminated against, they have 10 staff in this category currently. There are 2 levels of disciplinary committees. Conflict among staff is handled by fair hearing and by stipulations of HR. Resettlement guidelines are in place for carrying out installations. The DISCO tries to use existing infrastructure in the area to expand on it using their right of way. There is a security policy in place as well as one for engaging government security agencies and provision to top management and assault on staff. The DISCO has an organogram with a chain of command for staff. Contracts are managed with intended agreements exchanged and reviewed before being signed off on. There hasn’t been any contract issue in the last 6 years. There are currently no guidelines/ rules regarding succession/ change of top management to avoid 85 conflicts and discrimination, but there is a structure in place that addresses this adequately. Ibadan: The DISCO has Environmental guidelines and this would be provided subsequently. They have an environmental and social management operation, but this is not in detail. EIAs are conducted and samples would be provided. They have OHS and this can be provided. The safety of the public is guaranteed through engagement of the committee on HSE. Public enlightenment is done physically and virtually Waste management is done by the supply chain and administrative departments. Recruitment and personnel management is done by the HR department. Equal opportunity is ensured in the DISCO. Staff list and distribution would be included in the report. It is ensured that PWDs are not discriminated against during recruitment. Issues on grievance redress and resettlement and the 86 host community would be advised subsequently. Conflicts among staff are dealt with using the staff book and HR policy. There is also a document available to staff regarding chain of command and reporting. The DISCO has a security policy. Conflicts with contracts hardly arise as there is a straightforward HR policy to guide relations. There is a procurement guideline/manual to guide investors. m. There are guidelines/ rules regarding succession/ change of top management to avoid conflicts and discrimination in line with gender/other issues. The DISCO has a policy on sexual harassment. There is a complaint centre for customers on issues they may have which are channeled to appropriate departments to rectify. For trade unions, members and staff are free to join or opt out of these unions. For pension schemes, there are schemes present in line with the pension Act. There is also an arrangement with the local vigilante to incentivize them to protect against cases of vandalism. Ikeja: The DISCO has Environmental guidelines as well as social management plan. They usually conduct an EIA. Samples would be provided subsequently. 87 They have OHS guidelines and a social management plan Social awareness is conducted physically, as well as through other media. n. The DISCO has a public enlightenment and consultation plan as well as a waste management plan and a recruitment and personnel manual. Equal opportunity is ensured by posting available vacancies online. PWD are not discriminated against and have all needs met for work. They have a whistle blowing platform and a grievance redress mechanism. Issue of resettlement is dealt with by proper compensation of affected community members. The deed of assignment is checked to find who the owner is and who community leaders are on the land. A contract for compensation is drawn and signed to all parties involved. All grievances are discussed and agreed before the contract is signed. Issues of conflict in host community are dealt with by having frequent interaction with community members. There is a system in place to deal with conflict among staff. 88 They have a security policy and a document for staff regarding chain of command and reporting in the DISCO. Contracts are drawn up to ensure that stakeholders are properly capture and needs are met. There is a procurement guideline/manual to guide investors. o. There is a clear succession plan to minimize conflicts as much as possible. Jos: They have an environmental policy which is based on state government policies. When transformers are installed, there are safety procedures in provisions, precautions and caution requirements. The EIA is used to cover the areas where the safety measures are. Land on which this is done is approved by the State Ministry of Lands. Location is determined by the survey of where the supply is to be done and request for approval of that land is written to the state. Government would decide on how compulsory acquisition is to be carried out, but this is often avoided. Compensation for acquisition is done through government intervention. For each location, land policy and regulations rely on the state’s existing laws. 89 With grievance redress, the DISCO does not personally have its own regulations or procedures for that, but they do have an OHS for guidance. The DISCO does not have an environmental guideline, nor social management plan. They do not usually conduct EIAs. Kaduna: The DISCO has OHS guidelines in place. There is no approved social management plan, but there are corporate communication guidelines. Public safety is ensured by implementation of HSE guidelines and procedures. There is also an insurance policy in place to cover any public accidents. They have public enlightenment exercises as well. There is a waste management plan used in operation. The DISCO does not have a standalone security policy. The DISCO has a Communication policy. Kano: No response? Port Harcourt: There are environment guidelines embedded in the 90 safety practice manual. EIAs are conducted for installations to be done. Also, this is broken down into crisis management, social management, etc. to see impact on the environment, human rights, business practices, etc. all in the Environmental and Social Operations. Samples of EIAs cannot be provided as projects are usually carried out by Federal Government and so have met EIA criteria as part of the project process. The DISCO has OHS guidelines. Social management is embedded in the environmental and social operations. The DISCO has a safety mantra with safety briefs shared to staff. Precautions are carried out on arrival to sites as well. Public awareness is carried out to the public in targeted areas; schools, markets, etc. as well as on media. There are waste management plans especially in Cross River state. There are procurement standards and policies to manage contracts within the DISCOs and other contractors. There are policies which state clear succession plans and change of management. 91 In instances of land acquisition, Right of Way is strictly adhered to. The Ministry of Environment works with the DISCO in terms of the cleanliness of the environment. The Ministry of Land does not interfere directly with PHED for Right of Way; that is done by the Ministry of Power. Most Right of Ways are already established and where this is not so, they extend their right of way and then acquire land. The DISCO has a log for incidents and cases of near misses (in Enugu and Port Harcourt). There are laws to protect against GBV and PWD in Rivers state. Yobe: Under Government acquisition hence applies federal system. Perceptions about the Project The representatives were pleased with the presentation of the program. Recommendations and Remarks Generally, the consultations process was a success. 92 Annex 6: Online Virtual Meeting via Microsoft Teams with TCN, NERC and BPE of Nigeria Distribution Sector Recovery PforR. Date: September 22, 2020 Attendees: Dr. Aromeh Adole, Coordinator of Environmental and Social management framework Abdullahi Adamu, Head of ICT at NERC Iko Bulus, NERC, Planning and Dr. Abdussalam Yusuf (Assistant General Manager, Planning research and Strategy Division, NERC) The World Bank Team: Dr. Amos Abu Elijah Siakpere Lucky Erhaze Dr. Nnaemeka Chukwuone Oluwatomilola Olowokure Notes: The World Bank Task Team gave a brief introduction of the project and its objectives as well as expectations from the consultation with the TCN, BPE and NERC. A list of documents required from each of them were listed as follows:  Environmental and Social Management framework  Stakeholders engagement plan  Labour Management procedure for loading and offloading of meters on arrival  Communication plan; still referring to stakeholder engagement  Environmental and Social Commitment Plan; to be done in conjunction with the Bank Dr. Aromeh spoke on the meter purchase and distribution experience they had in Abuja and said the newer policies regarding environment and social would be included on this project going forward. Dr. Amos highlighted that specifics on functions and responsibilities and those responsible would be discussed in due course. The tentative date for the Decision meeting is October 25, 2020. These documents need to be submitted at least 10 days before. Questions to be answered by the NERC, BPE and TCN had been forwarded for their responses. Timelines discussed: Submission of documents should be no longer than two weeks after this consultation, i.e. October 6, 2020. 93 Annex 7: List of Participants During the Consultation with DISCOS between 14 and 18 of September 2020 S/No Name Position DISCO Contact (Email address/Phone Number) 1 Ije Ikoku-Okeke Chief Financial Officer Abuja 2 Tony Uneze General Manager, Health, Safety, Abuja Environment & Social 3 Rilwan Shorunke Manager, Financial Analyst Abuja 4 Reuben Okoye General Manager, Regulatory Affairs 5 Ashok Acharya Chief technical officer Benin AshokAcharya@bedcpower.com (08027894744) 6 Kunbi Labiyi Chief Corporate Service Officer Benin KunbiLabiyi@bedcpower.com (08085816716) 7 Gilbert Nweke Head HSE Benin GilbertNweke@bedcpower.com (08037440921) 8 Osagie Ebadan Head Procurement & Property Benin OsagieEbadan@bedcpower.com (08033425372) 9 Yemi Omoyelu Chief Regulatory & Compliance Benin YemiOmoyelu@bedcpower.com Officer (08023440357) 10 Ernest Edgar Head, Strategy and Regulatory PHED ernest.edgar@phed.com.ng 11 Ochuko Amah General Manager, Services PHED ochuko.amah@phed.com.ng 12 Monica Benson- General Manager, Human Capital PHED monica.benson-onaji@phed.com.ng Onaji Management 13 Canice Emeka Head, Revenue Protection PHED canice.obi@phed.com.ng 14 Frnaklin Ajaegbu Head, Special Projects PHED franklin.ajaegbu@phed.com.ng 15 Romanus Chidi Head, Network Management PHED romanus.chidi@phed.com.ng 16 Olalekan Head, Internal Audit PHED olalekan.olusanya@phed.com.ng Olusanya 17 Nnennaya Head, Legal Service PHED nnennaya.okoroafor@phed.com.ng Okoroafor 18 Chizim Owhor Asst Mgr, Regulatory & PHED chizim.owhor@phed.com.ng Compliance 94 19 Akinyinka Human Captal Management PHED akinyinka.akinpelu@phed.com.ng Akinpelu 20 Emmanuel Strategy & Regulatory PHED emmanuel.ogwuche@phed.com.ng Ogwuche 21 Obinna Okeke Strategy & Regulatory PHED obinna.okeke@phed.com.ng 22 Emem Sambo Strategy & Regulatory PHED emem.sambo@phed.com.ng 23 Uchenna Mbah Strategy & Regulatory PHED uchenna.mba@phed.com.ng 24 Nosakhare Okoro Strategy & Regulatory PHED nosakhare.okoro@phed.com.ng 25 Victor Dakoru Finance PHED victor.dakoru@phed.com.ng 26 Godgive Item Head, Procurement PHED godgive.item@phed.com.ng 27 Omotola HSE Officer PHED omotola.olayande@phed.com.ng Olayande 28 Chukwudi Regulatory Reporting PHED chukwudi.adeshina@phed.com.ng Adeshina 29 Mercy Regulatory Compliance PHED mercy.ohamuche@phed.com.ng Ohamuche 30 Maurice Ibok Head Commercial, Calabar Zone PHED maurice.ibok@phed.com.ng 31 Mbam Bond Revenue Protection, Uyo PHED 8165102324 32 Engr. Sylvester Network Manager, Uyo PHED sylvester.aguiyi@phed.com.ng Aguiyi 33 Ubong Akpan ICO PHED 34 Blessing Akpabio Key Account PHED 35 Dickson Inyang Customer Care Manager PHED dickson.inyang@phed.com.ng 36 Adejoke Shotade Community Engagement PHED adejoke.shotade@phed.com.ng Manager 37 U. C. Uriri Min of Women Affairs Rivers GUEST 8037077695 38 Gabriel Jaja Min of Lands & Survey Rivers GUEST 8037065454 39 Henry Uzor Min of Lands & Survey Rivers GUEST 8032931979 40 Charles George Min of Environment Rivers GUEST 8037100396 41 Panebi Jacob Min of Women, Children Affairs GUEST and Social Development Bayelsa 95 42 Kepre Godwin Min of Lands, Housing and GUEST Oege Urban Development Bayelsa 43 Chief Victor MD/CEO, Water Board Cross GUEST Effiom River 44 Hon. Victor Commissioner for Power Cross GUEST Agwu River 45 Hon. Mfon Commissioner for Environment GUEST Bassey Cross River 46 Sunday S. Dir. of Admin, Min of Labour & GUEST 8023754743 Umana Manpower Planning Akwa Ibom 47 Anietie O. Dir of Admin, Ministry of GUEST 8029199593 Archibong Women Affairs and Social Welfare Akwa Ibom 96 Annex 8: Details of Environmental & Social Benefits and Risks Associated with Each Result Area and DLIs Result DLIs Environmental Environmental Social Benefits Social Risks Areas Benefits Risks 1. Improved 1. Reduction Reduction in the per/kWh There could be This is beneficial to Power sector workers DISCO in DISCOs’ GHG emissions associated sparks and fire customers as they will no (especially technical operational metering gap with the network as a result incident during longer be given estimated workers) and public performance. of reduced use of fossil fuels installation of bills which could lead to safety may be affected as consumption of power by meters. excessive billing, loss of during the installation customers reduces. Also, income and poverty. of meters. There could where smart meters are used, Effective metering will be GBV and SH during they significantly benefit the equally help to reduce the distribution and environment by reducing technical and non-technical installation of meters in consumption of fossil fuel losses thus enhancing homes and offices. resources, thereby reducing distribution efficiency and There could be emission of greenhouse thus increased income and discrimination of gases (GHG) and other air poverty reduction as most vulnerable people and pollutants. The achievement citizens rely on income elite capture in the of this DLI also have some from enterprises that use distribution and climate co-benefits as it electricity. There will also installation of meters aligns with the MDB list of be increased employment especially when meters eligible mitigation activities economic growth as firms are in short supply. under Category 1.3: New will meet their installed Indirectly, there could information and capacity which was not be conflicts between communication technology, possible due to incessant customers and DISCOs smart grid and mini grid, as electricity supply. as some scrupulous well as Category 2.1: Increased distribution customers may tamper Retrofit of transmission lines efficiency and reliability with meters or quarrel or substations and/or will increase the number of with DISCO staff to distribution systems to hours that electricity is prevent Disconnection reduce energy use and/or actually available and thus due to tampering with technical losses including increase opportunities for meters especially non improving grid stability or children to study thereby smart meters. reliability. 97 Result DLIs Environmental Environmental Social Benefits Social Risks Areas Benefits Risks enhancing educational outcomes. 2. Number of There could be climate co- Connecting new customers Increased access to reliable Public and worker safety may new benefits due to reduced use into the distribution electricity supply, through be affected during the connections by of fossil fuel powered network could lead to new connections, can installation of new feeders DISCOs electricity generators by increased noise level and increase productivity and and connection of new households and businesses air pollution from heavy improve health with local customers especially given that will be part of the new duty vehicles and and global impacts. The the danger associated with connections; Off-grid machines that will be used income of those that are electricity. Also, there is a connections through in the operation. There getting connected to possibility of exclusion of renewable energy based could also be cumulative electricity, especially women vulnerable groups ethnic bias systems, for new impacts due to pre-existing involved in small businesses, and elite capture while connections, would also environmental conditions. will be enhanced, costs increasing connections and have some climate –co- Also, installation of new associated with the use of identification of underserved benefits; This DLI aligns feeders into underserved generators for electricity in areas to be installed with new with MDB list of eligible areas near the existing the households prior to the feeders and transformers. mitigation activities under distribution infrastructure connection will be There is also possibility of Category 1.1: Wind power may lead to cutting down eliminated and poverty will GBV and SH during and Solar power, as well as of vegetation and impact be reduced. The extension of extension of power to Category 1.3: New on fauna species thereby electricity to new customers underserved areas and information and leading to loss of through the new connections localities especially giving communication technology, biodiversity. will facilitate their economic the influx of power sector smart grid and mini grid. activities and help them workers into the recover from the economic communities. Indirectly, hardship due to COVID-19 there could be conflicts pandemic. Also, school between customers and children and youths in the DISCOs as some scrupulous areas receiving new customers may tamper with connections will have connects and meters to in a electricity which will bid to avoid payment. In enhance their studies with addition, there could be positive education outcomes. displacement of people 98 Result DLIs Environmental Environmental Social Benefits Social Risks Areas Benefits Risks Women especially, who especially due to installation often need power for most of feeders in underserved home activities will be areas and expansion of the impacted on positively. network to accommodate new connections through off- grid systems, for example, solar systems. 3. Kilometres Enhanced distribution Environmental risks Rehabilitation of the Public and worker of medium efficiency and reliability of associated with distribution lines will safety may be affected voltage (MV) power supply due to the rehabilitation of lead to the reduction of during the rehabilitation distribution rehabilitation of distribution lines include losses, enhanced of distribution lines and distribution lines and noise, waste problem distribution efficiency infrastructure especially lines infrastructure will help and traffic obstruction. and reliability of given the danger rehabilitated limit the rate at which In addition, the electricity supply. This associated with by DISCOs households and businesses rehabilitation of the will lead to increased electricity. There is also use petrol and diesel distribution lines may income for households possibility of GBV and powered generators. This lead to cutting down of and businesses that rely SH during rehabilitation will ultimately lead to tress and vegetation. y. on electricity for of distribution networks improved air quality and economic activities and and infrastructure reduction in pollutant and thus facilitate poverty especially giving the greenhouse gas emission. reduction and recovery influx of power sector This DLI aligns with MDB from the economic workers into the list of eligible mitigation crisis as a result of different localities activities under Category COVID-19. There will (urban and rural) where 2.1: Retrofit of also be increased rehabilitation activities transmission lines or employment economic will take place. There substations and/or growth as firms will could be bias in distribution systems to meet their installed choosing locations reduce energy use and/or capacity which was not where distribution technical losses including possible due to lack of networks will be improving grid stability or and incessant electricity rehabilitated. The reliability; Category 3.2: supply. Also, the DISCOS may choose 99 Result DLIs Environmental Environmental Social Benefits Social Risks Areas Benefits Risks Energy efficiency performance school locations that where improvements in existing children and youths customers use more commercial, public and residing in areas with electricity and pay more residential buildings as stable electricity supply money and neglect well as Category 3.3: due to the rehabilitation areas where poor and Improvement in utility- will be enhanced. vulnerable people reside scale energy efficiency Women especially, who as the returns from the through efficient energy often need power for areas will be less. There use and loss reduction, or most home activities could be minor land resource efficiency will be impacted on take and temporary improvements. positively. displacement of people around the distribution networks during the rehabilitation work. 4. Increased Increased efficiency in Environmental risks Efficiency in collection Workers safety may be collection the collection of due to this DLI is of tariff will enhance threatened when efficiency by tariffs/billed amounts negligible. DISCOs income, and Disconnecting DISCOs from customers will facilitate their customers that have not Discourage them from performance in ensuring paid or those that excessive use of distribution efficiency tampered with electricity which in and stability on power meters/involved in turn reduce the supply. This will in turn electricity theft. There is amount of power lead to increased possibility of SH and consumed. Reduction income for households SEA especially in the amount of and businesses that rely involving power sector power consumed by on electricity for workers and customers. customers will lead to economic activities and reduction in carbon thus facilitate poverty emission. reduction. Women and other vulnerable groups 100 Result DLIs Environmental Environmental Social Benefits Social Risks Areas Benefits Risks that need power to facilitate their economic activities will be impacted on positively. 2. Enabling 5. Reduction There would be There could be air Rehabilitation of PT and Public and worker diversification in transformer enhanced distribution and ground water DT will enhance safety may be affected of commercial technical efficiency due to the pollution due to distribution efficiency during the rehabilitation options for losses in rehabilitation of PT possible leakage of and lead to increased of PT and DT especially DISCOs to and DT and this will PCB contaminated income for households given the danger existing supply their bring about some transformer oil and businesses that rely associated with distribution demands. climate co-benefits. during the on electricity for electricity. The workers networks The DLI aligns with rehabilitation of PTs economic activities and may also be exposed to the MDB list of and DTs, waste thus facilitate poverty PCB contaminated oil. eligible mitigation problem possibility reduction. In this regard, activities under of air pollution. it will facilitate the Category 2.1: Retrofit recovery of households of transmission lines from the economic or substations and/or crisis due to COVID-19 distribution systems to pandemic. There will reduce energy use also be increased and/or technical losses employment economic including improving growth as firms will grid stability or meet their installed reliability, as well as capacity which was not Category 3.3: possible due to lack of Improvement in and incessant electricity utility-scale energy supply. Also, the efficiency through performance school efficient energy use children and youths and loss reduction, or residing in areas with resource efficiency stable electricity supply improvements. due to the rehabilitation 101 Result DLIs Environmental Environmental Social Benefits Social Risks Areas Benefits Risks will be enhanced. Women especially, who often need power for most home activities will be impacted on positively. 3. Strengthened 6. Compliance A strong governance Environmental risks A strong governance There could be GBV, SEA governance and with NERC mechanism will provide due to this DLI is mechanism will facilitate and SH. transparency. Code of some indirect benefits to negligible. distribution efficiency which Corporate the environment. In this is in turn associated with Governance by regard, a strong many social benefits DISCOs governance mechanism including enhanced income will facilitate distribution and poverty reduction. efficiency which will in turn lead to reduced emissions. 7. Achievement of this DLI Environmental risks An MIS system will Negligible Implementation will enable DISCO due to this DLI is help facilitate incident of Management management to operate negligible. recording and thus, Information on the basis of evidence- public and worker Systems (MIS) based, informed decision protection. In direct by DISCOs. making. As a result, benefits from an efficiency of the DISCOs effective MIS system in will be enhanced and thus the DISCOs is 102 Result DLIs Environmental Environmental Social Benefits Social Risks Areas Benefits Risks efficiency in power distribution efficiency distribution and thus, and stability in power reduction in greenhouse supply which will in gas emission. This DLI turn will enhance aligns with MDB list of income and poverty eligible mitigation reduction. activities under Category 1.3: New information and communication technology, smart grid and mini grid, as well as Category 3.2: Energy efficiency improvements in existing commercial, public and residential buildings. 103 Annex 9: Environmental and Social Systems of the DISCOs and the Assessment of their Strengths and Weaknesses DISCO Environmental Assessment of Social Management Assessment of Social Actions for Management Systems Environmental Systems and Management Systems and strengthening and and Framework Management systems Framework Framework improving the E&S system (To be included in protocol/ standard and verified by an Independent Verification Agency (IVA)) Abuja Abuja DISCO has a The DISCO has a robust The DISCO has an The DISCO has a robust social Abuja DISCO should (AEDC) Construction environmental Environment and Social management plan with a detailed provide a detailed OHS Environmental management system. The Policy Statement; Health resettlement policy and procedure. IVA to Management Plan CEMP outlines the key and Safety Policy procedure. The SIEP is robust ascertain that the E&S (CEMP); Environmental steps to be taken by all Statement; Security containing a detailed process of systems meet the Aspects and Impact site personnel to manage Policy Statement; Social engagement and a Grievance benchmark that will be the environmental Register; Environmental Management Plan; Redress Mechanism (GRM). developed as part of the hazards and risks and Social Policy Stakeholder The GRM includes a flow chart Program Action Plan associated with statement; Operational construction activities. Identification and of processing grievances. (PAP). Control Standard; The CEMP incorporates Engagement Plan (SIEP); Generally, the social Emergency Preparedness the DISCO’s management system appears and Response Plan; a environmental robust although AEDC did not Document on how PCB management policy, and provide a HR policy or has been managed; Waste describes its Condition of Service Handbook Management Plan; and a environmental system, or Manual. The OHS was only a Waste Management planning, waste policy statement without Procedure. Available management, vegetation detailed procedure for handling evidence shows that management etc. The OHS issues. The DISCO has Abuja DISCO conducts Organogram shows that enough personnel to deal with they have 3 key personnel environmental audits of social issues. and 6 interns responsible its Power Injection for environmental Substations. management. The team should be able to deal 104 with environmental issues in their area of jurisdiction if the interns are upgraded to environmental officers as the case may be. The DISCO also has a robust plan for emergency preparedness and response, and for waste management. The process of PCB is also detailed although no date has been set for elimination of PCB from their system. Benin Waste Management The OHS and E&S Stakeholder Engagement They only have an OHS officer BEDC needs to have (BEDC) Procedure; Occupational, framework is detailed and Framework; Security but there are no members of adequate staff for the Health, Safety, aims to ensure that Procedure; Personal staff designated for management management of OHS Environment and Social operations and activities Protective Equipment of social issues. 14.45% of their issues. Provide Management Framework; are conducted in a Policy; Occupational, staff are women. The LARF is emergency response Environmental and Social manner that minimizes Health, Safety, well detailed and contains plan. IVA to ascertain impact to the biophysical Policy Statement; Environment and Social procedure for voluntary and that the E&S systems and social environment, Management Framework; involuntary land acquisition and meet the benchmark that promote health and safety condition, among others. Occupational Health and resettlement of Project Affected will be developed as part The organogram shows Policy (OHS) Statement; Persons (PAP). BEDC has a of the Program Action that BEDC has only an Land Acquisition and robust GRM that provides Plan (PAP). OHS officer but there are Resettlement Framework multiple avenues for reporting no members of staff (LARF); Grievance grievances and a procedure for designated for Mechanism; Human handling and monitoring the environmental Resource Policy; GRM. The HR policy is also management. robust and covers all aspects of human resource management as required by law. BEDA does not 105 have an emergency response plan to guide management of emergencies and near misses. Eko Environmental Policy EKEDC has an EMS Sexual Harassment The sexual harassment policy Provide an emergency (EKEDC) Statement; OHS policy which covers operational Policy; Conditions of has clear definitions of sexual response plan and and manual; planning and control Service; Whistle Blowing harassment and different forms procedure for the Environmental procedure; monitoring, Policy; Standard of it and a detailed complaints management of land Management System measurement, analysis Operating Procedure procedure. The condition of acquisition and (EMS); Green and evaluation (SOP), OHS policy and service (HR policy) provides for resettlement. Update Procurement Framework; procedure; risk manual, different labour issues including E&S system to meet the NEREA certificate of management planning; code of conduct, recruitment benchmark that will be Environmental Audit; etc. EKEDC carried out (equal opportunity employer), developed as part of the HSE policy statements; a vegetation compensation, rewards and Program Action Plan management study in benefits, among others. The SOP (PAP). 2018 which found out provides for a detailed approach that the vegetation for handling customer control technique used complaints. EKEDC does not by the DISCO is have an emergency response manual method (hand plan to guide management of cutting) and chemical emergencies and near misses. method (use of Also, issues relating to land herbicides). It is acquisition and resettlement important to note that were not covered. the use chemicals (herbicides) in vegetation management if not properly handled can negatively affect fauna species. EKEDC also carried out air quality studies and found out that air quality index for PM 106 2.5 in the 51 injection substations was good to unhealthy. While PM 10 varied from good to moderate. The HSE policy statements covers issues relating to fire safety and emergency response policy statement, personal protective equipment policy statement, first aid policy statement, environmental protection policy statement etc. Although EKEDC has an EMS which covers some issues, the system does not fully incorporate procedures for management of environmental issues and parameters despite the studies, for example on air quality and vegetation management, which made recommendations on approaches to follow in the management of 107 these environmental issues. Enugu Health Safety and The HSE manual details Human Resource EEDC HR manual is detailed Provide an emergency (EEDC) Environment Department the role of staff in the Department Manual; covering the role of staff in the response plan and Manual; Waste department and provides Security Department department, recruitment procedure for the Management Procedure for a standard operating Manual; Regulatory procedure, staff welfare, management of land Manual; Environmental procedure to deal with Affairs Department pension, unionism etc. The acquisition and and Social Policy HSE issues. It covers Manual; security department manual resettlement. Update issues of health and safety Procedure (ESPP) Communications describes the roles of the E&S system to cover but is weak regarding statement; Environmental Manual; Sexual different units and officers and a environmental issues to issues of environmental Management System management. For Harassment and standard operating procedure for meet the benchmark that (EMS); Corporate Health example, vegetation Inappropriate security issues. The will be developed as part Safety and Environment management, PCB Relationship Policy; communications manual of the Program Action Policy; management, Security Policy Manual; includes procedures for Plan (PAP). environmental assessment Occupational, Health and communicating with customers and audit etc. Although Safety (OHS) Manual; and other stakeholders on EEDC has EMS, these Recruitment Process different issues. Although there issues are not covered. Manual; Standard is a policy to deal with issues of EEDC has adequate staff Operating Procedures for sexual harassment, the penalties to deal with HSE as it has Staffing Unit; are not clearly stated for specific HSE officer in all the offenses. Besides the sexual stations under the two harassment policy does not district (although evidence of their cover issues of GBV. EEDC qualifications was not does not have an emergency provided). Generally, response plan to guide there is a replication of management of emergencies and health and safety near misses. Also, issues relating documents but to land acquisition and environment is not well resettlement were not covered. covered in any. Harmonizing these documents into a robust Environmental and Social Management Manual or 108 operations manual will provide for better management, monitoring and evaluation. Ibadan Environmental IBEDC EMS incorporates Human Resource Policy The HRPP is detailed and Provide adequate staff (IBEDC) Management System the environmental policy, and Procedure (HRPP); contains a lot of provisions and build their capacity (EMS) Manual; environmental objectives, Recruitment and including manpower planning, to handle HSE issues, Preliminary Carbon duties of staff regarding Selection Policy and recruitment, competence provide procedure/policy Footprint Assessment environment at their Procedure; Procedural management, performance to deal with Report; EMS operational various locations etc. agreement with Unions management, career and GBV/SEA/SH and There is also and EMS planning and control; although not signed; succession plan etc. It is procedure for the monitoring, measurement, EMS monitoring, OHS policy statement; provided in the HRPP that the management of land analysis and evaluation measurement, analysis procedure and operational OHS manual; Process DisCo is an equal opportunity acquisition and and evaluation procedure; planning and control Manual for Handling employer and does not resettlement. Update EMS Resource procedure, EMS resource Customer discriminate according to E&S system to meet the Management; EMS management and EMS Complaints/Service gender, race, ethnicity, religion benchmark that will be Evaluation of compliance evaluation of compliance Issues. or any other criteria. IBEDC developed as part of the procedure; EMS Risk procedure, and EMS risk also has a standalone Program Action Plan Management Planning; management planning as recruitment policy and (PAP). Draft Environmental standalone documents. It procedure besides the details Policy; will be more helpful to already provided in the HR incorporate or consolidate policy. It will be good if the all the separate EMS recruitment policy is procedure into EMS incorporated in the HR policy to manual. There is an evidence (NESREA avoid duplication or on the other Certificate) to show that hand the recruitment section in IBEDC conducts the HR policy should refer to the environmental audit of its standalone recruitment policy. injection substations. The procedural agreement with IBEDC has also unions in IBEDC contains conducted air quality provision for grievance redress assessment around its among staff. There is a Process injection sub-stations. Manual for handling customer The staff list and complaints and it also includes a 109 qualification provided customer redress mechanism shows that only one staff flow of actions. Also, there is no with qualification in policy for dealing with issues of management (a MBA in GBV and SH and this not Marketing Management provided in the HRPP. Also, and A PGD in issues relating to land Management) not related acquisition and resettlement to HSE is in the were not covered. They did not department suggesting that the department is indicate that they apply NERC understaffed and the land acquisition regulation. available one is not qualified to be in the department. This also suggests that HSE is mainly on paper. Ikeja (Ikeja Certificate of The IMS manual of Ikeja Recruitment Policy; Ikeja Electric is an equal Provide procedure/policy Electric accreditation from DQS Electric is like an Certificate of opportunity employer as to deal with (IE)) Dmbh that Ikeja Electric umbrella document that accreditation from DQS indicated in the recruitment GBV/SEA/SH and GRM. maintains an support the Dmbh that Ikeja Electric policy. Ikeja Electric HSE-OCP Given that IE has a Environmental implementation of the maintains an covers all OHS risks and robust environmental Management System Integrated Management Occupational, Health and Environmental aspects of the management system and System in the company (EMS); Integrated Safety (OHS) company’s activities. It has a OHS, IVA should and to also help in Management Systems management system; section on OHS operational ascertain that the E&S addressing the relevant (IMS) Manual; HSE requirements of the Grievance Policy (for controls which cover issues systems meet the Operational Control international standards for staff); Operational relating to safety codes, fire benchmark that will be Procedures (HSE-OCP); Quality Management Control Procedures prevention and protection, PPE, developed as part of the Quality, Health, Safety System (ISO 9001:2015), (OCP); Conditions of field compliance monitoring, Program Action Plan and Environment (QHSE) Environmental Service Manual; Ikeja Electric Safe App, general (PAP). Policy statement; Management System Incidents Investigation OHS requirements, among (ISO 14001:2015) and Tracking Register; Code others. The Conditions of Occupational Health and of Ethics and Service Manual is very robust Safety (ISO 45001:2018). Professional Conduct; covering all aspects of HR Ikeja Electric HSE-OCP management including code of is a related document to ethics and professional conduct, 110 the IMS manual. It Performance salaries, wages and increment, outlines the practices to Improvement Plan; training and development, be adopted for controlling industrial relations, benefits, OHS risks and insurance and compensation, Environmental aspects of discipline with detailed the company’s activities sanctions due to misconduct as under the scope covered agreed with unions, among by the Integrated others. IE has a very robust Management System. It covers all OHS risks and systems and procedures for Environmental aspects of handling social issues, however, the company’s activities. there was no evidence that they It has a section on have GRM for customers or a environmental aspects procedure for handling customer management operational complaints although control procedure which communication with customer includes, waste including complains was management, vegetation summarized in the IMS manual. management, Although a sanction of dismissal management of for sexual harassment was transformer oils, green incorporated in the Conditions office practices; air emission control, dust of Service Manual, IE does not control, noise control, have detailed procedure for environmental impact handling GBV and SH. assessment, among others. IE also has an emergency preparedness and response procedure. Jos (JED) Waste Management JED do not have any Accident and Near-miss JED has a robust Conditions of JED to develop Procedure; manual guiding Record; Conditions of Service document. The EMS/HSE manual and environmental Service (Employee document covers issues relating OHS manual. Provide management for example Handbook/Code of to employment and promotion, procedure for handling EMS, HSE manual. Also, Conduct); Customer Care salaries and allowances, GBV, SEA and SH. they do not have any Standards Operation performance management and Develop/update (for certificate indicating that Procedure; Employment reward, discipline, compensation socials) E&S systems to 111 they have conducted an Policy and Manual; and benefits, labour and meet the benchmark that EIA or Environmental Performance industrial relations, among will be developed as part Audit in the past. They Improvement Plan; others. The Customer Care of the Program Action indicated that they have Security Policy; Standards Operation Procedure Plan (PAP). engaged a consultant to Stakeholder details the approach to handling prepare and Identification and of customer complaints, Environmental Audit of Engagement Procedure; including complaints their injection sub- Strategic Plan; investigation and resolution stations. They only have a waste management process. They indicated that they procedure which is a follow the extant laws and guide for management of regulation, especially, in issues waste in JED offices. It of land acquisition. JED has a does not cover the detailed stakeholder management of waste at identification and engagement the sites in the field and procedure. JED does not have where they are having on- detailed procedure for handling going rehabilitation work. GBV and SH. JED indicated that The company also does they apply NERC land not have Emergency acquisition regulation. Preparedness and Response Policy. Kaduna Noting on Environment Employee’s Conditions The Condition for Service is KAEDCO to develop (Kaduna of Service; Corporate robust and covers issues relating EMS/HSE manual and Electric) Communications Process to employment and promotion, OHS manual. Provide (KAEDCO) Policy Guideline; salaries and allowances, procedure for handling Performance performance management and GBV, SEA and SH. Improvement Plan (PIP); reward, discipline, compensation Develop/update (for and benefits, labour and socials) E&S systems to industrial relations, among meet the benchmark that others. Corporate will be developed as part Communications Process Policy of the Program Action Guideline also provides the Plan (PAP). detail for communicating with the company and with customers 112 and other stakeholders. KAEDCO does not have detailed procedure for handling GBV and SH. The company also does not have Emergency Preparedness and Response Policy. Kano Environment and Social The HSE guideline is not Accident Log (2014 to KEDCO has a condition of KEDCO to develop OHS (KEDCO) Due Diligence Checklist; robust as it does not cover Date); Company Policy service policy that has some manual and a detailed Health Safety and a lot of issues, for on Conditions of Service; details regarding code of GRM. Provide procedure Environment (HSE) example, environmental Procurement Unit Policy; conduct, recruitment, for handling GBV, SEA Guideline 2020; assessment, waste Whistle Blowing Policy; appointment and promotions, and SH. Update their Corporate Health Safety management, vegetation Succession Planning salaries/wages/allowances/loans, E&S systems to meet the management, noise and Environment Policy; Guidelines. whistle blowing, misconduct and benchmark that will be control etc. The company maximum penalties etc. While it developed as part of the also does not have Emergency Preparedness has a brief section on GRM for Program Action Plan and Response Policy. staff, it did not provide any (PAP). guideline but only indicated that it was in the interest of the company and employees to resolve issues relating to them in a mutually acceptable manner. It also said in another document (processes and procedures) that KEDCO encourages employees to resolve grievances informally with their line Managers and or Heads of Department. Also, there was no provision for pension scheme as stipulated in the Pension Reform Act. They only indicated that retiring employee will be paid basic 113 salary 3 months in lieu. The company also does not have a detailed procedure for handling GBV and SH. Port Health Safety and PHEDC HSE-MSM and Procurement and Supply PHED in its People Handbook Harcourt Environment HSE-PSO does not Chain Management (Human Resources Policy) does Management System adequately provide for an Policy and Procedure; not provide for union activities (PHEDC) adequate strategy and Manual (HSE-MSM); Strategic Enlightenment in line with the Trade Union Health Safety and actions to manage health and Consultation Policy; Act. PHED has a relatively Environment Policy and safety and environment. Performance detailed procedure for In fact, some of the points Strategic Objectives Improvement Plan (PIP); engagement of stakeholder and in the HSE-MSM were (HSE-PSO); Safe Document on enlightenment and consultation. propositions and are not Practices Manual; Waste clear strategies or actions. Stakeholder It has a robust procedure for Management Plan; Also, the HSE-PSO does Identification and crisis management (emergency Monthly Accident not contain the detail Engagement; Corporate preparedness and management). Statistics; regarding how the policy Social Responsibility It is important to note that statements will be Policy; Security PHED envisages labour crisis operationalized including Guideline, procedure and and has a detailed action that responsibilities. The is Processes; PHED People should be followed in case of need for PHEDC to Handbook; Procurement update its HSE policy and Picketing by Union groups and Supply Chain strategy to provide a around the business premises. Management Policy and robust strategy and action However, PHED did not provide Procedure; Crisis for union activities in its peoples plan to facilitate HSE Management Procedure; Handbook. management. Succession Plan Framework; Yola Health. Safety and YEDC indicated that they YEDC Grievance YEDC did not provide HR YEDC to develop (YEDC) Environment (HSE) do have a manual for Procedure; Stakeholder policy, No GBV and SH EMS/HSE manual, HR Policy Statement; HSE environmental Engagement for Effective management procedure, No manual and OHS Management System management. The HSE DISCO Management; Incidents Investigation Tracking manual. Provide GRM Manual (Roles and management system Register, No Security Policy etc. procedure and procedure Responsibilities); YEDC manual only indicated for handling GBV, SEA 114 Safety Code; Waste responsibilities for the and SH. Develop E&S Management Program; officers in the unit. systems to meet the benchmark that will be developed as part of the Program Action Plan (PAP). Note: This annex shows the existing procedures for E&S management in the DISCOs, their strengths and weaknesses and required action for strengthening and improving the E&S systems. It does not provide a benchmark for measuring the DISCOs. Providing a benchmark is one of the actions in the PAP. 115