The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 04/27/2021 | Report No: ESRSA01385 Apr 27, 2021 Page 1 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Uzbekistan EUROPE AND CENTRAL ASIA P171683 Project Name Electricity Sector Transformation and Resilient Transmission Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Energy & Extractives Investment Project 4/27/2021 6/29/2021 Financing Borrower(s) Implementing Agency(ies) Ministry of Finance JSC "National Power Networks of Uzbekistan", Ministry of Energy Proposed Development Objective Public Disclosure The Project development objective is to strengthen the performance of the National Electricity Grid of Uzbekistan (NES) and improve the capacity and reliability of the power transmission system to integrate large scale renewable energy sources. Financing (in USD Million) Amount Total Project Cost 500.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The proposed Project would have the following four components: (i) Digitalization of the electricity transmission sector; (ii) Power grid strengthening and renewable energy integration; (iii) NES institutional development and project implementation support; and (iv) Electricity market development. COMPONENT 1: Digitalization of the electricity transmission sector. The proposed Project will take advantage of the modern digital technologies to support the enhanced monitoring, automation and control of the power system in Apr 27, 2021 Page 2 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) Uzbekistan. Digital technologies to be deployed under the proposed Project would comprise of Supervisory Control and Data Acquisition (SCADA), Energy Management System (EMS) and substation Remote Terminal Units (RTUs). This component will also support an upgrade of NES’s digital telecommunication network to enable those systems to be fully functional. COMPONENT 2: Power grid strengthening and renewable energy integration. The proposed investments under the Component 2 will support: (a) modernization of 22 priority transmission substations that were commissioned in 1940/1950s; and (b) construction of a new greenfield substation Koltsevaya 500 kV as well as associated transmission lines to meet increasing demand and improve the reliability of electricity supply for residential, industrial, commercial and public consumers in the Central part of Uzbekistan, where the transmission networks are currently overloaded. COMPONENT 3: NES institutional development and project implementation support. This component will support developing and improving the institutional capacity, financial substantiality and technical capabilities of NES to ensure it can effectively carry out its functions of reliable operation of the transmission system and electricity market in Uzbekistan. The component will include the following sub-components: (i) Modernization of NES business process; (ii) NES financial sustainability and preparatory work to access commercial financing; (iii) NES institutional capacity building and project implementation support; and (iv) Technical supervision consultancy. COMPONENT 4: Electricity market development. This component will provide technical assistance for the design and implementation of the electricity sector’s transition plan toward the establishment of a wholesale electricity market and will include preparation of secondary legislation, market rules, institutional capacity building as well as design and Public Disclosure implementation of systems required for market operation and management. The specific activities will include: (i) establishment of the Energy Market Regulatory Authority (EMRA); (ii) development of a Wholesale Electricity Market; (iii) establishment of a Central Buyer; (iv) establishment of a Balancing Market within NES; and (v) implementation support to Ministry of Energy and its Project Office. D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] The Project will operate in almost all regions of Uzbekistan. Uzbekistan is a resource-rich, doubly landlocked, lower middle-income country that is uniquely positioned to border all of the other countries in Central Asia. Uzbekistan has a territory of 458,000 square km and lies between the Syr Darya and Amu Darya Rivers. Most of the country is occupied by vast plains, and the rest by mountains with heavily dissected relief. The mountain region is in the eastern and south-eastern parts and links with the Tien Shan and the Altay Ranges. Diversity of soil forming rocks, ecological regimes, vegetation, extreme continental climate, and vastness of the territory contribute to great diversity and complexity of soil cover in the republic. On most plains with continental climate, a desert type of soil prevails, while on contemporary river plains with their favorable soil moisture, there are as a rule hydromorphic soils - meadow- desert, meadow-swamp, swamp and solonchak soils. Uzbekistan’s geographical position contributes to the dryness and continentality of its climate. The country has dry hot summers, cool and wet autumns, and cold winters with thaws. Agro-ecologically, Uzbekistan is divided into eight regions: Ustyurt, Low Amudarya and Kyzylkum regions in the plains, the other five regions, Middle Syrdarya, Ferghana, Zarafshan, Kashkadarya and Surkhandarya, are in foothills and mountains. Uzbekistan is the most densely populated country in Central Asia: the average population density is Apr 27, 2021 Page 3 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) 67.9 people per km2. Among the regions of Uzbekistan, the most densely populated regions are Andijan and Ferghana regions. Uzbekistan is one of the most energy-intensive countries in the world and energy efficiency remains a key priority. While Uzbekistan’s energy intensity declined by about 45 percent during the last 15 years, the country’s energy use per unit of GDP is 3.1 times higher than the average for the Europe and Central Asia region. The high level of energy intensity is common for all parts of the entire economy. The proposed Project will support modernization of 22 priority substations that were preliminarily identified for rehabilitation throughout the country. The mentioned substations are located in various regions (all peri-urban and urban). All works for 22 substations are expected to take place within an existing secured substation perimeter. The Project would also finance the construction of one new substation and construction of related transmission lines at 500 and 220 kV levels. Potential application of digital solutions and elements under this sub-component will also be discussed with NES (National Electricity Networks) company that was formed after the unbundling of Uzbekenergo) and the Ministry of Economy during the project preparation. Preparation of feasibility studies for future investment projects will also be financed under the project. D. 2. Borrower’s Institutional Capacity The overall responsibility of the Project implementation, including the environmental and social assessment and monitoring, lies with NES (National Electricity Networks Company). NES, as it was formed after the unbundling of Uzbekenergo, has had experience with two World Bank-funded projects, Talimarjan Transmission Project (P119939) and Modernization and Upgrade of Transmission Substations (P156584). Based on Uzbekenergo's delivery of those Public Disclosure projects, NES is has a moderately satisfactory environmental and social management capacity. The core staff responsible for these projects is being transferred to NES and will form the Project Management Unit (PMU) within it. In addition to the central PMU, it is envisaged to have regional coordinators, at least one in each of the eleven project regions, where 22 substations are to be modernized and a new substation with transmission lines at 500 kV, 220 kV voltage levels is to be constructed. The day-to-day Project activities will be the major responsibility of the PMU, which will be also responsible for ensuring that project activities are assessed from environmental and social points of view and that requested environmental and social documents are prepared and adequately implemented in line with the Bank's ESF. For the purpose of implementing environmental and social standards, both Environmental and Social Specialists are required within the PMU - their main responsibility will be to coordinate environmental and social management, including adequate implementation of Environmental and Social Management Framework (ESMF), site-specific Environmental and Social Impact Assessments/Environmental and Social Management Plans (ESIAs/ESMPs), Resettlement Framework (RF), site-specific Resettlement Plans (RPs), Labor Management Procedures (LMP), and Stakeholder Engagement Plan (SEP). The Environmental Specialist has been hired and PMU is looking to fill the Social Specialist capacity. The Environmental and Social Specialists shall ensure the imlementation of any measures identified by the Social Audit (SA) undertaken of the land acquisition process for the Koltsevaya sub-station. The SA is undertaken to identify whether any additional actions are needed in order to ensure compliance of the the process with the requirements of the Environmental and Social Framework (ESF), notably Environmental and Social Standard no. 5 (ESS5): Land Acquisiton, Restrictions on Land Use and Involuntary Resettlement. During the Project implementation, the Environment and Social Specialists would perform regular supervision of the sites to confirm compliance with ESMF and site specific ESIA/ESMP requirements. In the case of non-compliance, the Apr 27, 2021 Page 4 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) Environment and Social Specialists would investigate the nature and reason(s) for non-compliance, suggest corrective action or recommend sanctions against non-compliant contractors. Institutional arrangements for Environment and Social Management, including responsibilities of NES, its contractors and other relevant parties will be set forth in the Project Operational Manual. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial Environmental Risk Rating Substantial The Proposed Environmental Risk Rating is “Substantial”, due to the nature and scale of activities supported by the Project, as well as relative inexperience of the PMU with the ESF requirements and project E&S risks. Environmental risks and occupational health and safety hazards will mostly originate from activities under Component 2: Power Grid Strengthening and Modernization. This component is expected to support the construction of a new greenfield substation, related construction/expansion of total length 285 km of 500 and 220kV transmission lines and the upgrading (modernization) of 22 existing substations across country. Most of the expected impacts are likely to occur during the construction phase (occupational health and safety hazards, generation of solid waste, air pollution and noise, disruption of traffic, etc.). Some additional construction activities may occur under Component 1: Digitization of Electricity Transmission Sector, which will be associated with laying optical ground wire (OPGW) fiber optic cables during the envisaged modernization and upgrade of NES’ telecommunication network (will happen at a Public Disclosure later stage of the project). Even if the number of investments is defined, this may be revisited during project preparation and the decision on locations is not final and will be phased out. Therefore, the main instrument is ESMF, acceptable to the World Bank, developed, consulted on with stakeholders, and disclosed prior to Project Appraisal. In addition, 2 site-specific ESMPs on early investments have been prepared and disclosed prior appraisal – one for greenfield substation “Kolcevaya” and second for exisiting substation rehabilitation “Tashkent-500” . The ESMF analyzes the overall environmental and social situation related to the Project, including details on which Environment and Social Standards (ESSes) are relevant; identify risks and appropriate mitigation; provide screening criteria that spell out scope of site specific Environmental and Social Impact Assessments (ESIAs)/ ESMPs for the proposed Project activities; suggest template for a simplified checklist ESMP for small-scale rehabilitation construction works; environment and social monitoring and reporting requirements; a section on proposed capacity building activities to help the PMU comply with the ESF; and expected costing implications. The Borrower, in coordination with the World Bank Environment and Social Team, has also prepared an Environment and Social Commitment Plan (ESCP) that details the timing for the above-mentioned documents and capacity building needs for strengthening NES's environmental and social management system. The Borrower will ensure that the preparation and implementation of any Associated Facilities is carried out in the manner consistent with the World Bank’s ESF. At the PAD stage, no Associated Facilities were identified, but they may be identified as project undergoes implementation. For such event, ESCP will mention that in case of AFs, NES PMU should conduct a brief environmental and social assessment, identify management instruments and include the necessary provisions in all procurement documents. Social Risk Rating Substantial Apr 27, 2021 Page 5 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) The social risk is considered as Substantial. The Project’s key interventions relate to commercialization and digitization of the electricity grid company, expected to result in improved and reliable electricity supply, which will have potentially positive social impact on the lives and livelihood of affected communities. Potentially adverse social impacts may primarily occur in connection with the physical works under Component 2, and may be caused by (i) unavoidable land acquisition and involuntary physical or economic resettlement caused by the physical works; (ii) construction-related activities, and (iii) other impacts on local communities and stakeholders in the vicinity of the project facilities, such as substations, digital cables, and transmission lines. These impacts may potentially be substantial and will be managed through instruments such as ESMF, RF, site-specific ESIAs/ESMPs, LMP and SEP. Since land acquisition process has already been initiated by GoU in connection with the Koltsevaya greenfield sub- station, a Social Audit of this process has been undertaken to ensure it complies with the requirements under ESS5. Where required, the audit will indicate any measures that need to be taken in order to meet the requirements of ESS 5; these measures can be included in a Resettlement Plan (RP). In case of further need for land acquisition during project implementation, RPs will be developed on the basis of the principles, rules and procedures set out in the RF. The risks associated with labor influx, community health and safety are considered moderate, as most project workers will be recruited locally, and the LMP details the rules and procedures for management of labor relations, including mitigation measures in case of labor influx and contractors’ labor camps. The risks of Sexual Exploitation and Abuse/Sexual Harassment (SEA/SH) are moderate, primarily due to the status and enforcement of national Gender-based Violence (GBV) legislation, gender norms at worksites, most of which are in peri-urban and urban locations, and the policy to use locally recruited work force as far as possible, thus avoiding or substantially reducing labor influx. The LMP prescribes the inclusion of Code of Conduct in contracts and associated training as well as the setting up a Grievance Mechanism with a special track for processing complaints related to SEA/SH. Public Disclosure B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: The project recognizes the following standards as relevant: ESS 1, ESS 2, ESS 3, ESS 4, ESS 5 and ESS 10. The environmental and social risks are both rated Substantial. Towards addressing these risks, the following instruments have been prepared: (i) Environmental and Social Management Framework (ESMF): (ii) Environmental and Social Impact Assessments/Environmental and Social Management Plans (ESIA/ESMP) for sub-projects per criteria detailed in the ESMF, with 2 (two) of them ready and disclosed prior to appraisal for early investments, namely construction of greenfield “Koltsevaya” and rehabilitation of exisiting susbtation “Tashkent-500”; (iii) Resettlement Framework (RF); (iv) Stakeholder Engagement Plan (SEP); (v) Labor Management Procedures (LMP) and (vi) a Social Audit of the land acquisition process conducted for the Koltsavaya greenfield substation. The proposed civil works, construction activities, the dismantling or installing electrical equipment at substations, putting OPWG underground cables would generate some adverse impacts related to dust and noise; air and water pollution; construction wastes; asbestos; and health and labor safety issues. All of them would be minor, of limited duration, influence a relatively small area, and occur primarily during the construction phase. While replacing old Apr 27, 2021 Page 6 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) transformers at the existing substations, there might also be some serious health and environmental impacts related to presence of polychlorinated biphenyls (PCBs), which represent Persistent Organic Pollutants (POPs) and may provoke carcinogenicity, reproductive impairment, immune system changes, and the loss of biological diversity, if not handled properly and disposed of with care. Operational phase environmental risks, such as the risk of impact (or perception of impact) of electric and magnetic fields on population is considered low as siting of the existing substations is remote and they are at safe distances from houses. Substations with closely situated residences will be identified at ESIA/ESMP stage, where such risk will be described with appropriate mitigation measures and discussed with affected parties during public consultations. Any plans for the use of pesticides (also POPs) to control vegetation under transmission lines during operation is not known at this stage and will be identified during project preparation. Because modernization of power transmission infrastructure will lead to significant reduction in energy losses, it will contribute to reduction in greenhouse gas (GHG emissions). The Project will bring positive economic and social impacts as the proposed activities would increase efficiency and reliability of electricity supply for the population and economy nationwide. The Borrower has developed an ESMF with detailed criteria and guidance for the development of site-specific ESIA/ESMPs for project activities.These criteria and guidance will determine the level of ESIA/ESMP needed for specific activities – from detailed documents for more complex activities to simple checklists for more basic activities. The Project is using the framework approach through the preparation of an ESMF because the specific characteristics of the activities to be financed are either not yet fully known and/or will be implemented in phased approach. While the scope of a few activities to be financed are known before Appraisal (such as the Koltsevaya substation investment Public Disclosure or some early substation rehabilitation), the design and thus final environment and social footprint, will not be known until after implementation has begun – at which point the ESMF will be applied and the appropriate level of site- specific ESIA/ESMP determined. The ESMF also includes General or Power Sector Specific Environment, Health and Safety (EHS) Guidelines to identify specific environmental risks and their mitigation measures. In addition to ESMF, the Borrower has also prior to Appraisal prepared and disclosed the site-specific ESMPs for the investment in the construction of the Koltsevaya sub-station and for the modernisation of Tashkent 500 sub-station. At this stage, potential social risks and impacts relate to physical footprint/construction activities under Component 2, as well as ensuring effective engagement with local communities and other relevant stakeholders nearer to the facilities (substations, digital cables, transmission lines). The risks related to labor influx or community health and safety under the project are considered moderate, as most project workers will be recruited locally. As indicated above, SEA/SH risks are moderate. In terms of social impacts deriving from construction works, the proposed Project will support construction of one greenfield sub-station, modernization of 22 priority substations that were identified for rehabilitation. The mentioned substations and lines are located in various regions. All works for 22 substations are expected to take place within existing substation areas and transmission lines ROW, and it is not expected that there will be any need for land acquisition (or in the context of Uzbekistan, termination of land user rights) in most of these locations. However, for the construction of the new substation of Koltsevaya, land acquisition has already been initiated by GoU, and thus a Social Audit was conducted to assess the compliance of this process with the requirements of ESS5/RF – and to determine any gap filling requirements to ensure such compliance. The gap filling requirements are to be listed in the Environmental and Social Commitment Plan (ESCP). Apr 27, 2021 Page 7 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) The Project will not finance any low-voltage distribution lines that would cause impacts on privately used lands. The Project will avoid, to the extent possible, causing adverse impacts on private or privately-used land and property, and will clearly document all efforts made to avoid land restriction and other adverse impacts. It is expected that the high voltage transmission lines to be financed under the Project, including for the new Koltsevaya substation, will follow their existing alignment and thus not require additional lands beyond their existing right-of-way (ROW). As part of ESIA/ESMP preparation, all activities will be screened for impacts related to land acquisition, restrictions on land use, and involuntary resettlement, and in case a site-specific ESIA/ESMP determines that permanent or temporary land acquisition or land use restrictions on privately owned/used lands, or economic displacement are found to be unavoidable, these will be minimized to the extent possible. Furthermore, the Project will follow the procedures laid out in the the Resettlement Framework (RF) prepared for the Project, which contains guidelines and procedures for the preparation of site-specific Resettlement Plans (RPs) which in such cases will need to be prepared, ensuring that adequate compensation and rehabilitation measures be provided to the project affected people. The Project will be implemented nationwide, under different local conditons and with diverse stakeholders possessing uneven capacity to interface with the Project. In view of this, and of the scale of sub-projects under Component 2, where detailed site-specific information is not yet available, including the extent of ESS 5 risks, the social risk is rated to be ‘substantial’. Moreover, there are risks related to broader country context in respect of forceful evictions and forced labor, as described in Section on Other Relevant Project Risks below. The following Standards will be particularly relevant to address these social risks -- ESS 1, ESS 2, ESS 4, ESS 5, and ESS Public Disclosure 10. The Project does not pose any social risks associated with ESS 7. ESS10 Stakeholder Engagement and Information Disclosure ESS 10 is relevant to this project. In order to ensure that a consistent, comprehensive, coordinated and culturally appropriate approach is taken to stakeholder engagement and project disclosure, NES has prepared and disclosed a draft SEP acceptable to the Bank on NES website on March 31st, 2021. The SEP is proportional to the nature and scale of the Project and associated social risks and impacts to be explored further through social and environmental assessment process during preparation. The SEP is developed and implemented to ensure that stakeholder engagement is conducted on the basis of timely, relevant, understandable and accessible information. It identifies all stakeholders and other interested parties, with specific attention to identification and inclusion of vulnerable groups and women, comprising national and local level stakeholders, ranging for relevant government agencies, local hokimiyats and service utility providers, as well as households in relevant regions, and project affected peoples. The SEP includes a stakeholder engagement strategy for the implementation of socially inclusive and accessible (both format, location and language (Uzbek & Russian)) consultations throughout the duration of the project. Project information, including all the draft environmental and social instruments (ESMF, RF, LMP, SEP, summaries of site- specific ESMPs) and assessments of potential risks and impacts have been disclosed on NES website in local and English language on March 31st, 2021 and stakeholder consultations took place on April 7th, 2021. The SEP disclosed prior to Appraisal will be updated, as necessary, throughout the project cycle (preparation and/or implementation). A stakeholder grievance mechanism (GM), as part of SEP, is operationalized for the project to allow for feedback and Apr 27, 2021 Page 8 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) complaints. As part of GM design, NES has a focal point handling proper implementation of SEP, as well as ensuring that the GM is functioning with grievance log, timelines, and tracking system. Since the preparatory phase of the project has taken place under COVID-19 restrictions, the stakeholder consultations have primarily been of virtual nature in order to minimize the risk of person-to-person virus transmission. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions ESS 2 is relevant to this project. NES has prepared and disclosed the Labor Management Procedures (LMP) for the project, compliant with national labor legislation and the requirements of ESS2. The LMP is applicable to the Project work force, i.e. direct workers and workers contracted by third parties, whereas any civil servants working on the project will remain subject to their existing public sector employment conditions. No community workers will be involved in the Project. The national labor legislation in Uzbekistan is largely consistent with the requirements of the ESS2, but in a few areas, key gaps exist, which are addressed in the LMP of the project. The NES will ensure that the contractors are legitimate and reliable entities and that they have in place labor management procedures applicable to the project that are compliant with this LMP including with the above-mentioned measures to bridge the gap between national legislation and the ESS2 requirements. Each Contractor will be required to introduce their own Grievance Mechanism. Contractors will not hire persons aged under 18 for working on the project activities. Public Disclosure Primary Suppliers are likely to include suppliers of construction materials, equipment (e.g. high voltage and low voltage, pumping equipment, etc.). If there is a risk of forced labor in the main supply chain, NES will identify these risks. If cases of forced labor are identified, NES will hand over the project's main supply chain to suppliers who can prove that they comply with the LMP. The NES will include in its contract with suppliers a specific clause on non-use of child and forced labor. Uzbekistan is working to eradicate forced labor in various sectors and has made significant progress. However, the use of forced labor remains a problem, and the LMP clearly spells out the prohibition on using forced labor or child labor in the project. A national Grievance Mechanism to report cases of forced and child labor is established through the Federation of Trade Unions in Uzbekistan responsible for the monitoring of labor rights protection, using a 24- hour helpline anonymous short number (1092), telegram bots (the most popular messenger in Uzbekistan) and internet sites. The project will screen and monitor all contractors of the project to ensure that they are not associated with child or forced labor in any form, and that they observe the requirements of the LMP. Given the nature of the project workforce (mainly unskilled and semi-skilled construction labor) and the nature of the labor market in Uzbekistan, it is expected that the workforce, especially low skilled workers, will be predominantly male. It is estimated that women would represent about 5-10 percent of the workforce, and those would likely be technical (engineering) and/or staff working in the operation offices and camps (cooks, cleaners, etc.). It is expected that most of the labor force will be locally employed, except for skilled workers. All work will be contracted out. Contractors will be encouraged to train and hire as many workers as possible from local communities, and labor Apr 27, 2021 Page 9 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) influx is expected to be limited. A total of around 350 workers may be involved in the project's construction work, and on the basis of experience from similar projects, the workers are expected to be 30-40 years old. The LMP includes a Grievance Mechanism (GM) for its direct workers, and contractors are required to develop C- LMP, including provisions to establish and maintain GM for their employees. The key labor risks would be associated with health and safety risks related to the construction of and rehabilitation of buildings such as exposure to physical, chemical and biological hazards during construction activities, use of heavy equipment, trip and fall hazards, exposure to noise and dust, falling objects, exposure to hazardous materials and exposure to electrical hazards from the use of tools and machinery. As the construction activities will involve hazardous work, persons under the age of 18 will not be employed by the Project. The NES will take steps to prevent accidents, injury, and disease arising from, associated with, or occurring in the course of work by minimizing, as far as reasonably practicable, the causes of hazards. In a manner consistent with good international industry practice, as reflected in various internationally recognized sources including the World Bank Group Environmental, Health and Safety Guidelines, the client will address areas that include the (i) identification of potential hazards to workers, particularly those that may be life-threatening; (ii) provision of preventive and protective measures, including modification, substitution, or elimination of hazardous conditions or substances; (iii) training of workers; (iv) documentation and reporting of occupational accidents, diseases, and incidents; and (v) emergency prevention, preparedness, and response arrangements. Requirements to follow good industry practice and OHS Guidelines will be included in bidding documents of all civil works contractors. The Contractors’ development of C-LMP and its compliance with the project LMP will be monitored by NES and Supervision Consultants throughout the course of Project implementation. Public Disclosure ESS3 Resource Efficiency and Pollution Prevention and Management ESS 3 is relevant to this project. Assessment of risks and impacts and proposed mitigation measures related to relevant requirements of ESS 3, including raw materials, water use, air pollution, hazardous materials, and hazardous waste will be included within scope of the ESMF and site specific ESIAs/ESMPs, as relevant. If the generated waste is considered hazardous, the Borrower will comply with existing requirements for management (including storage, transportation and disposal) of hazardous waste including national legislation and applicable national conventions. Where such requirements are absent, the Borrower will adopt GIIP alternatives for environmentally sounds and safe management and disposal, in measures accessible in country’s context. At present, old electrical equipment transport and disposal is handled by a special division of NES which is regulated by national safety norms and requirements for electrical equipment and its components. The Borrower should regularly monitor the presence and level of PCB in disposed transformers oil and take appropraite action for disposal. The Project Component 3 on NES Institutional and technical capacity development will further invest in national capacity assessment for handling hazardous waste, assessment of gaps and in realistic measures in country’s context to achieve and maintain compliance with ESS3 and international standards. ESS4 Community Health and Safety Apr 27, 2021 Page 10 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) ESS 4 is relevant to this project. Construction and rehabilitation activities are often associated with the generation of dust and noises, soil disturbance, disruption of access and traffic congestion, generation of waste, labor influx and associated disturbances to local communities. Hazardous materials will be controlled so as not to open any access to them to the communities. Project activities are not expected to create emergency events. In this Project, most locations are in remote, isolated peri-urban or urban areas and only some might be in close proximity with residential buildings (less than 100m) which will be further verified during Project implementation. These cases will be identified and the client will evaluate and put in place a mechanism to manage potential road safety risks, risk to workers, nearby communities and other road users. The risk of impact (or perception of impact) of electric and magnetic fields by substations on population is considered low as siting of the existing substations is remote and at safety distance from houses. Substations with closely situated residential buildings will be identified at ESIA/ESMP stage, where such risks will be described with appropriate mitigation measures and discussed with public during public consultations. No significant risks related to labor influx, or community health and safety are expected under the project, as most project workers are part of existing contracts or will be recruited locally. The Borrower will work closely with traffic monitoring entities in order to provide road safety. Also the Borrower will be responsible in a front of the local communities for grievances related to the project. With regard to SEA/SH risks, the LMP prescribes the inclusion of Code of Conduct in contracts and associated training as well as the setting up a Grievance Mechanism with a special track for processing complaints related to SEA/SH. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Public Disclosure ESS 5 is relevant to this project. The Project will be implemented nationwide, even if the number of project locations is generally defined, this may be revisited during project preparation. All works for 22 existing substations are expected to take place within existing substation areas and transmission lines ROW, and it is not expected that there will be any need for land acquisition (or in the context of Uzbekistan, termination of land user rights) in most of these locations. However, for the construction of the new substation of Koltsevay, land acquisition has already been initiated by GoU, and thus a Social Audit is being conducted to assess the compliance of this process with the requirements of ESS5/RF – and to determine any gap filling requirements to ensure such compliance. If any extra measures are required, they will be included in a RP. It is expected that the high voltage transmission lines to be financed under the Project, including for the new Koltsevaya substation, will follow their existing alignment and thus not require additional lands beyond the existing Right-of-Way (ROW). As part of ESIA/ESMP preparation all activities will be screened for impacts related to land acquisition, restrictions on land use, and involuntary resettlement, and in case a site-specific ESIA/ESMP determines that permanent or temporary land acquisition or land use restrictions on privately owned/used lands, or economic displacement are found to be unavoidable, these will be minimized to the extent possible. Furthermore, the Project will follow the procedures laid out in the the Resettlement Framework (RF) prepared for the Project, which contains guidelines and procedures for the preparation of site-specific Resettlement Plans (RPs) which in such cases will need to be prepared, ensuring that adequate compensation and rehabilitation measures be provided to the project affected people. Apr 27, 2021 Page 11 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) The Project does not expect to have any legacy issues in relation to land acquisition. The Project will not finance any low-voltage distribution lines that would cause impacts on privately used lands or any private entities. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources Most of the works will be done on existing infrastructure: substations and existing transmission lines. They are often located away from biodiversity hotspots in remote peri-urban or isolated urban areas. No threats to natural habitats are identified at this stage. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities There is no social group in Uzbekistan that is known to meet the criteria of Indigenous Peoples for the purpose of the standard. Thus ESS7 is not relevant. ESS8 Cultural Heritage ESS8 is not relevant for this project. No direct impact on cultural heritage nor new cultural arterfacts are expected, as electrical infrastructure is usually located in remote peri-urban or isolated urban areas, is well fenced and delineated and were constructed decades ago. The ESMF and site-specific ESMPs contain Chance Find Procedures to be followed in case unexpected physical cultural heritage appears during project implementation. Public Disclosure ESS9 Financial Intermediaries ESS 9 is not relevant for the Project because its implementaiton arrangements do not consider involvement of any financial intermediaries. B.3 Other Relevant Project Risks In Uzbekistan, involuntary land acquisition leading to demolition of structures and physical displacements has been occurring on a significant scale. A number of grievances have surfaced in the recent times as people have been adversely impacted by civil works. Concerns have been raised with local authorities about them not following due processes and not providing resettlement and rehabilitation assistance adequately and appropriately within a reasonable time frame. These risks have not been observed in energy sector and are unlikely in the context of the proposed activities, given that most of the activities will take place within existing sub-stations. With regard to the land acquisition for the Koltsevaya sub-station, a Social Audit is ongoing to ensure that the process and compensation package is compliant with natiobal legislation and the requirements of the ESS5. If additional measures are required, they will be set out in a RP. Furthermore, NES will strengthen its capacity to monitor enviromental and social issues in the project and, with support from the World Bank, NES will conduct awareness raising and training for local authorities at regional and mahalla levels where the project activities will take place. Apr 27, 2021 Page 12 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No B.3. Reliance on Borrower’s policy, legal and institutional framework, relevant to the Project risks and impacts Is this project being prepared for use of Borrower Framework? No Areas where “Use of Borrower Framework” is being considered: N/A IV. CONTACT POINTS World Bank Contact: Ferhat Esen Title: Senior Energy Specialist Public Disclosure Telephone No: 5771+2415 / 998-71-1202415 Email: fesen@worldbank.org Contact: Maksudjon Safarov Title: Senior Energy Specialist Telephone No: 5771+2455 / 998-71-1202455 Email: msafarov@worldbank.org Contact: Husam Mohamed Beides Title: Lead Energy Specialist Telephone No: +1-202-458-1587 Email: hbeides@worldbank.org Borrower/Client/Recipient Borrower: Ministry of Finance Implementing Agency(ies) Implementing Agency: JSC "National Power Networks of Uzbekistan" Implementing Agency: Ministry of Energy V. FOR MORE INFORMATION CONTACT Apr 27, 2021 Page 13 of 14 The World Bank Electricity Sector Transformation and Resilient Transmission (P171683) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Ferhat Esen, Maksudjon Safarov, Husam Mohamed Beides Practice Manager (ENR/Social) Varalakshmi Vemuru Cleared on 15-Apr-2021 at 16:39:30 GMT-04:00 Public Disclosure Apr 27, 2021 Page 14 of 14