The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 09-Oct-2018 | Report No: PIDISDSA23952 May 02, 2018 Page 1 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Western Africa P164044 ECOWAS-Regional Electricity Access Project (Phase 1) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA 02-Oct-2018 13-Dec-2018 Energy & Extractives Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Finance and Energie du Mali (EDM SA), Economic Affairs of The National Water and Gambia, Ministry of Electricity Company Economy and Finance of (NAWEC), Electricidade e Guinea Bissau, Ministry of Agua da Guiné - Bissau Finance & Economic (EAGB), ECOWAS Development of Mali, Directorate for Energy ECOWAS Commission for Mines and Energy Proposed Development Objective(s) The Project Development Objective is to increase grid electricity access in Guinea-Bissau, Mali, and The Gambia. Components Design, supply and installation of electricity distribution infrastructure Supervision of the construction and technical advisory Program coordination and technical assistance PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 225.00 Total Financing 225.00 of which IBRD/IDA 225.00 Financing Gap 0.00 May 02, 2018 Page 2 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 225.00 IDA Credit 216.00 IDA Grant 9.00 Environmental Assessment Category B-Partial Assessment Decision The review did authorize the team to appraise and negotiate B. Introduction and Context Country Context 1. For over 40 years, the Economic Community of West African States (ECOWAS) has united 15 countries with the stated goal of promoting economic cooperation and achieving “collective self - sufficiency�. Its original members include Benin, Côte d'Ivoire, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania (left in 2002), Niger, Nigeria, Senegal, Sierra Leone, The Gambia, Togo, and Burkina Faso (joined as Upper Volta). Cape Verde later joined in 1977. The block of countries occupies a little over 5 million km2 and is highly heterogeneous – economically, culturally, and ecologically – presenting both opportunities and challenges to economic growth and development. 14 of the countries are sparsely populated and four are landlocked, depending on their neighbors for crucial access to global markets. The region is home to 360 million people in aggregate, though population density is low, and 55 percent of its inhabitants live rural areas. 2. Despite recent economic growth, West Africa remains poor and around 50 percent of the population still lives on less than US$2/day. The countries in the region are some of the poorest in Sub- Saharan Africa (SSA) with GDP per capita of under $1,000 on average and as low as $363 in Niger. Thus, despite being home to around 33 percent of the SSA population, the region accounted for just 28 percent ($1,606 billion) of GDP in 2015. There has been a positive economic trend over the past decade, driven mainly by growing domestic demand, increased foreign investment, favorable commodity prices, and improved economic governance. As a result, West Africa was one of the highest performing regions of the continent. However, the strong GDP growth that the region achieved over 2010-2014 decreased severely to 2.25 percent in 2015 and -0.2% in 2016 due to the impacts of the Ebola crisis and protracted low commodity prices. Thus, while the first Millennium Development Goal (MDG) target of halving poverty was met globally, this was not the case in West Africa: Over the 1990-2015 target period, ECOWAS only May 02, 2018 Page 3 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) experienced a 29 percent reduction in overall poverty. Today, 70 percent of this region’s population still lives below US$3.10/day. 3. Guinea-Bissau is a low-income and fragile country with a population of 1.82 million, and per capita GDP based on purchasing power parity (PPP) of about US$1,608 in 2016. Guinea-Bissau’s return to constitutional order in 2014 allowed the country to improve its socio-economic situation and return to growth. After three years of stagnation due to the 2012 coup, Guinea-Bissau’s economy has returned to significant growth – estimated at 4.8 percent in 2015, up from only 0.8 percent in 2013 and 2.7 percent in 2014. The growth was due to a good performance in the agricultural sector, private sector’s increased confidence, public-sector reforms (budgetary consolidation in particular), and the return of donors. Growth reached 5.76 percent in 2016, with continued political cohesion. 4. Mali is a large landlocked and fragile country with a rapidly growing population of about 18 million and a per capita GDP based on PPP of about US$2,125 in 2016. Although Mali is 1,240 km2 large, 60 percent of its land area is desert pushing population growth mainly into urban or already populated areas. Economic activity slowed in 2015, with real GDP increasing at an estimated 5.2 percent (5.8 percent in 2014), due to the poor performance of the agricultural sector. Mali has a democratic political system with mostly non-violent transfers of power. In 2012-13, however, the country faced a complex crisis on three fronts: (i) conflict and insecurity in the North, (ii) institutional and political turmoil in the South, and (iii) humanitarian and food insecurity across the country due to the 2011 drought. The country’s peace and reconciliation agreement, signed on 15 May and 20 June 2015, stabilized political life, but the security situation remains fragile. Mali is a member of the G5 Sahel. The July 2018 presidential election reinforced the political stabilization of the country. The Gambia is a low-income and fragile country with a population of 2.04 million, per capita GDP based on PPP of about US$1,676 in 2016. The Gambia’s economic performance has been affected by a series of external shocks. The impact of the regional Ebola outbreak on tourism and delayed summer rains in 2014, together with weak economic policy implementation, led to a contraction in real gross domestic product (GDP) growth to 0.9 percent in 2014, sharply down from an initial estimate of 7 percent. Growth rebounded to 4.3 percent in 2015 due to a recovery in tourism and agriculture but fell again to 2.26 percent in 2016. The fiscal balance deteriorated further in 2015 and international reserves came under pressure, while the outlook is clouded by policy slippages related to financing another large programmed deficit of 9.3 percent of GDP in 2016. The December 2016 presidential election marked a major political transition for The Gambia, leading to the reestablishment of strong diplomatic ties with regional and international trading partners. GDP was projected to grow at 5% in 2017. Sectoral and Institutional Context 5. Access is a priority in ECOWAS since almost half of the ECOWAS population, or 184 million people, does not have access to electricity today. Access to electricity in Sub-Saharan Africa (SSA) lags the rest of the World at the same level of development and, until recently, the total number of people without access to electricity continued to increase as population growth outpaced electrification. Furthermore, substantial disparities between countries mean that the electricity access situation in the poorest ECOWAS countries is even worse. Guinea Bissau, for example, has an access rate as low as 14.7 percent overall and just 4 percent in rural areas. Overall, the region’s growth in access has historically May 02, 2018 Page 4 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) occurred at speeds far below what is needed to achieve the SDG 7, namely ensuring access to affordable, reliable, sustainable and modern energy for all by 2030. Figure 1. Access to electricity in target countries1 6. There are several factors which contribute to high costs of electricity services in the ECOWAS region. In addition to an expensive energy mix, many countries in the sub region have serious shortcomings in the operational efficiency of state-owned utilities, which combined with diseconomies of scale in the operation of smaller power systems, have had dramatic impact on two levels. First, the region is home to some of the highest average retail tariffs in the world, frequently above US$ 0.20 per kWh. Second, and despite high tariffs, no country in the region has achieved full cost recovery and most (even those with high tariffs) are not recovering their operational expenditures.2 The resulting quasi-fiscal deficits make utilities dependent on Government subsidies for capital investments at the very least, and often for survival. In response to this, the Bank and other donors have in recent years adopted an investment strategy geared towards improving utility operational and financial performance and ensuring their long-term viability. Details on the Bank’s support in this regard to the countries included under phase 1 are included later in this section. The Bank is also exploring opportunities for developing a programmatic approach to tackling sector viability issues across ECOWAS by systematically and regionally optimizing 1 World Bank, Sustainable Energy for All (SE4ALL ) database from the SE4ALL Global Tracking Framework led jointly by the World Bank, International Energy Agency, and the Energy Sector Management Assistance Program 2 Kojima M. and Trimble C. Making Power Affordable fir Africa an Viable for the Utilities. World Bank 2017. May 02, 2018 Page 5 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) energy mixes. This complementary program would complete the Bank’s multi-pronged and cohesive vision for sustainability in the ECOWAS power sector both on and off the grid. 7. Low willingness to pay, compounded by high barriers to entry, prevent uptake even in households that are close to the grid. An upcoming Bank study3 finds that electricity uptake for households near the grid is just 57 percent. One of the reasons for this is low willingness to pay, which is prevalent regardless of whether on-grid or off-grid services are on offer and reflects affordability rather than desirability. Furthermore, willingness to pay for access is driven not just by average income levels but also by the predictability and expected flow of income needed to afford regular monthly billing. Another hurdle to uptake is the connection process. Connection charges in ECOWAS countries are frequently between US$ 150-250, making connecting to the grid prohibitively expensive for poorer households. The associated administrative processes are also not well adapted to the constraints faced by the poor and involve lengthy waiting times, sometimes in excess of 10 weeks. 8. Annual consumption of electricity in ECOWAS is among the lowest in the world, and therefore, the impact of expanding access has a marginal impact on utility financial performance. At 160 kWh per capita, the annual consumption in member states is equivalent to that needed to power just a 40W lightbulb for 12 hours per day. Low consumption means that economies are not deriving the potential benefits of electricity access. It also adds to the effect of tariffs below cost-recovery and means that utilities are generally unable to recover the cost of adding household connections. When excluding investment costs however, and precisely because consumption is so low, the impact of expanding household access on utility financial performance is marginal relative to that of large consumers who make up the bulk of electricity sales. In other words, excluding capital investments, expanding access costs utilities little while benefiting many, whereas a limited number of large consumers disproportionately drive utility deficits. However, as utilities are not well-positioned to make pro-poor or subsidized investments given their reliance on Government subsidies themselves, they have little incentive to invest in grid extension. 9. ECOWAS has also long struggled with power deficits, compounded by unconstrained demand growth of 10 percent per year in most countries. Member states have acknowledged that past efforts to achieve national self-sufficiency in electricity supply have been uneconomical because of the high cost of building power generation and transmission infrastructure. They also acknowledge two major obstacles in the region. First, low-cost and sizable power plants and systems based on hydro-power (Guinea and Mali) or domestic natural gas (Ghana, Nigeria, and Senegal) are difficult to develop in the national context alone but are key to providing low-cost electricity. Second, the lack of adequate transmission infrastructure (within and between national power systems) and slowly developing regional market are key constraints in the drive toward greater cooperation and lower-cost electricity to support increased access. 10. Expanding access to electricity nevertheless remains a key priority at regional as well as national levels, and a foundational input for long-term economic transformation. In 2006, ECOWAS released a white paper for a regional policy geared towards increasing access to energy services in the region and aimed at achieving the MDGs. Specifically, it targeted an ECOWAS access rate of 60% (up from 20%) by 2017. The ECOWAS access rate today is 52.4%, but just 44.9% without Nigeria. In 2013, the ECOWAS 3 Blimpo M.P. and Cosgrove-Davies M., Electricity Uptake for Economic Transformation in Sub-Saharan Africa. World Bank 2018. May 02, 2018 Page 6 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) Council of Ministers approved a set of tangible measures for the ECOWAS regional infrastructure development program, including an electrification program aimed at electrifying up to 40 million people. Beyond the social imperative for expanding access, and while recent evidence on the immediate economic impact of access to electricity is mixed, practitioners broadly agree that the economic opportunity cost of delaying access far outweighs the investment required. This is because electricity access is crucial driver in increasing productivity, adopting modern technologies, facilitating access to markets, and improving service delivery in areas such as healthcare and education. 11. ECOWAS agenda aims at expanding on-grid access and improving the cost of supply to the countries by expanding an interconnected power system. In 1999, ECOWAS established the West African Power Pool (WAPP) to integrate national power systems into a regional electricity market. This approach was based on the benefits of optimizing energy resources across the region given different country endowments and load profiles. A regional mechanism creates the opportunity to both capitalize on large scale generation plants designed to support multiple countries and trade power to maximize availability and minimize cost. The expectation is that, over the medium to long term, this mechanism will help to provide stable and reliable electricity supply at affordable cost.. The stark contrast between large energy surpluses in some countries and others who struggle with scarcity of cost-efficient sources of electricity suggests fertile ground for regional trade. 12. The WAPP is underpinned by an infrastructure program comprising mutually reinforcing subprograms that will converge into a unified transmission system linking all West African countries. By the early 2020s, the WAPP power system will transit toward a fully interconnected regional network, with all ECOWAS countries physically interconnected through transmission lines adequate to permit significant import-export of electricity. These programs are being implemented through several investment projects supported by the World Bank, the African Development Bank (AfDB), and other multilateral and bilateral institutions. WAPP countries are already engaged in bilateral exchanges today, trading about 6 percent of sub-regional generation capacity. 4 5 Trade is expected to increase further in the medium term, when various regional transmission lines under implementation are completed. 13. Coincidentally, as the primary interconnectors are poised to be completed by the early 2020s, the WAPP will have approximately 1000 MW of excess capacity initially from Ghana and Cote d’Ivoire, excluding the potential development of new power generation in the region.6 Ultimately, achieving the WAPP’s objectives and ensuring its sustainability therefore require the expansion of electricity access to underwrite the power consumption and trade on which it is predicated. With the economic rationale for large generation and transmission projects relying on willing buyers to purchase power, it is imperative that countries invest now to absorb additional capacity as it comes online. Furthermore, as the world moves towards universal access and the achievement of SDG 7, it becomes socially untenable to allow the growing divide between those with access and those without to persist. 4 Côte d’Ivoire has signed export agreements with Mali, Burkina Faso, Benin and Liberia. Nigeria exports electricity to Niger and Benin, also based in bilateral agreements. 5 Mercados. 2016. Power Pools in Africa. 6 The development of gas reserves in ECOWAS is currently under consideration in Côte d’Ivoire, Ghana, Nigeria, and Seneg al. May 02, 2018 Page 7 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) C. Proposed Development Objective(s) 14. The Development Objective for the SOP is to increase grid electricity access in ECOWAS. 15. The Project Development Objective is to increase grid electricity access in Guinea-Bissau, Mali, and The Gambia. 16. The project PDO level indicators are: (i) People provided with new or improved electricity service (Core Indicator) – of which female – of which households (grid or off-grid) D. Project Description 17. The proposed project will finance work outlined above in Guinea-Bissau, Mali, and The Gambia. The project aims to provide access to around 1.1 million people in specific localities in each country selected following a first-order least cost geospatial planning within a 100-km radius of the substations of the OMVG in The Gambia and Guinea Bissau, and the substations of the OMVS in Mali. The project is aligned to the national access programs. 18. The project comprises three components: (i) Design and build of electricity distribution infrastructure (Medium Voltage - MV and Low Voltage - LV) to maximize new connections; (ii) Supervision of the construction and technical advisory; and (iii) Technical assistance and project management. 19. Component 1: Design, supply, and installation of electricity distribution infrastructure (estimated cost: US$ 188 million, of which IDA US$ 188 million). This component specifically supports the detail design, supply and installation of distribution networks from OMVG and OMVS 225/33KV substations with the following scope: (a) 4 000 km of 33 KV medium voltage (MV) lines, (b) 1 100 33KV/400V distribution substations, (c) 4 000 km of 400V low voltage (LV) lines to expand grid coverage and maximize the number of new connections; and d) 160 000 last mile connection equipment, including service drops, , prepaid meters, as well as ready boards for low voltage customers 20. Component 2: Supervision of the construction and technical advisory (estimated cost: US$ 6 million equivalent, of which IDA US$ 6 million). This component will finance the costs associated with the recruitment of an owner’s engineer (OE) that will be recruited on a competitive basis under the project to supervise the work carried out under component 1. The owner’s engineer will also monitor compliance with safeguard instruments (environmental and social) related to construction. 21. Component 3: Program coordination and technical assistance (estimated cost: US$ 31 million equivalent, of which IDA US$ 31 million). In the spirit of strengthening national and regional capacities, this component will finance a combination of technical assistance and project management support to assist recipients in successfully implementing the project and preparing for future phases under the program. Specifically, this component will finance the strengthening of recipient implementation teams responsible for project implementation, expected project costs associated with the management of safeguards excluding the resettlement costs, and technical advisory services pertaining to preparation studies – such as least cost electricity access development plans - for future projects in the region. It will also finance operational support for Guinea Bissau May 02, 2018 Page 8 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) E. Implementation Institutional and Implementation Arrangements 22. Throughout the program, implementation of project activities will leverage existing implementation teams that are active in the sector. In doing so, implementation arrangements for the program will not support the establishment of new national or regional institutions, but rather focus on strengthening and networking existing national and regional institutions to better support on-going or planned investment in access. 23. Implementation of the program and of each phase under the program will be led by the Regional Coordination Unit (RCU) located within the Directorate of Energy of ECOWAS, the fiduciary capacities of which will be confirmed prior to Decision. The role of RCU will primarily be to provide a convening platform for coordination among regional entities and national participants, lead the procurement process for contracts financed under the project, carry out monitoring and reporting for each phase, and provide relevant technical assistance to country implementation teams as deemed necessary, including support for safeguards, fiduciary management responsibilities, knowledge management, and communication as well as for all other cross-cutting activities leading to necessary regional alignment/harmonization. 24. In each country, implementation and supervision will be carried out by a national project implementation unit (PIU). During the preparation for each phase, experienced national entities will be selected, such as existing Bank funded PIUs showing proven adequate fiduciary capacities, which will be re-assessed during appraisal. PIUs will then be strengthened as recommended by the appraisal to ensure successful implementation of the project activities. 25. To streamline the coordination of the projects, a steering committee will lead the coordination with the government and any other relevant national entities. The Steering Committee will be comprised of the representatives from the recipient countries and chaired by the Director of Energy of ECOWAS. 26. In each phase of the program, the RCU will lead and facilitate a joint procurement process for each activity under the project. Under this arrangement, the RCU will lead and facilitate the preparation of all bidding documents, the evaluation of proposals, and the selection proposals of contractors/consultants with the input of the PIUs concerned. The evaluation/selection committee for all contracts under each phase will comprise an authorized representative from each PIU concerned. 27. For components 1 and 2, once the relevant firms have been selected, individual contracts will be signed between them and each PIU concerned. PIUs will then be responsible for the implementation and supervision of these activities, including all safeguards. Component 3 will be implemented by the RCU, with additional capacity provided to PIUs as needed on a demand-driven basis. In addition, the RCU will be responsible for the overall monitoring, evaluation, and reporting functions for each project. Each project in the program will therefore combine assistance from the RCU (overall regional coordination and implementation of some regional activities) with support to countries (national coordination and implementation) to fully integrate national and regional priorities. 28. For each phase, ECOWAS and recipient countries will sign separate financing agreements, with funds disbursed directly through existing institutional structures. Each country will establish a subsidiary agreement with their national utilities and project agreements where relevant. May 02, 2018 Page 9 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) 29. Guinea Bissau PIU: The mandate of the existing PIU will be modified to incorporate this project. The Ministry of Economy and Regional Integration (MERI) will oversee the PIU and the national utility Electricidade e Aguas da Guine-Bissau (EAGB). The PIU is properly staffed with regards to sector and fiduciary aspects and their management of the on-going projects has been efficient and proactive. The financial management (FM) and procurement assessments carried out during project preparation found that the PIU’s FM and procurement systems are adequate and capable of supporting the implementation of the project in accordance with the requirements of OP/BP 10.00. The PIU will receive additional specific support consisting of one (1) power engineer responsible for the project under the project coordinator, one (1) environmental specialist, and one (1) social specialist which will be funded under the proposed project. The PIU will also be supported by the Environmental Impact Evaluation Unit (Célula de Avaliação de Impacto Ambiental, CAIA), in the Prime Minister’s Office, which will help validate the implementation of environmental and social safeguards measures of the project. 30. Mali PIU: Energie du Mali (EDM-SA) will be responsible for the management of the project, given their linkage to the regional interconnections networks. The Ministry of Energy and Water will be the responsible for the technical activities such as planning and reforms of the sector. The project management unit (PMU) within EDM of the Mali Electricity Sector Improvement project will be the national PIU of the proposed project in Mali. The PMU is composed of a project coordinator, a procurement specialist, a financial management specialist, networks and substations engineers, an environment specialist, a social expert, and a monitoring and evaluation specialist. The PIU will receive additional specific support consisting of one (1) power engineer responsible for the project under the project coordinator, one (1) environmental specialist, and one (1) social specialist which will be funded under the proposed project. 31. The Gambia PIU: The utility, National Water and Electricity Company (NAWEC), will be the sole implementing agency of the Gambia Electricity Support Project (GESP), assuming all fiduciary responsibilities and responsibilities for reporting to the Bank. A GESP PIU has been established within NAWEC, including the key functions of project coordinator and procurement specialist, as well as financial management officer, technical specialists, environmental and social specialist, project accountant, and Monitoring and Evaluation (M&E) specialist. While NAWEC has experience in hosting implementation units for projects financed by other donors, the GESP PIU will receive specific training in Bank fiduciary rules and guidelines. The PIU will receive additional specific support consisting of one power engineer responsible for the project under the project coordinator, one environmental specialist and one social specialist that have been recruited and will be funded under the proposed project. Figure 3: Project Implementation Arrangements May 02, 2018 Page 10 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) . F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) Most project activities will be developed in urban and rural areas, mostly located close to the 225kV substations built under the OMVG and OMVS projects in Senegal, Guinea, Guinea-Bissau, The Gambia and Mali. G. Environmental and Social Safeguards Specialists on the Team Cheikh A. T. Sagna, Social Specialist Medou Lo, Environmental Specialist Mamadou Moustapha Ndoye, Social Specialist May 02, 2018 Page 11 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Activities under component 1 have the potential for some localized environmental and social adverse impacts and risks. These include vegetation clearing, nuisances like dusts and noises, poor construction related waste management, moderate risks of Labor influx, GBV, risks of safety, injuries and HIV/AIDS and SDTs prevalence on selected work sites. Since none of the targeted localities are yet known, and will probably not be known prior to project appraisal, to comply with the provision of triggered World Bank safeguard policies and the national environmental regulations, each country has prepared an Environmental Assessment OP/BP 4.01 Yes Environmental and Social Framework (ESMF) and a Resettlement Policy Framework (RPF) and amply consulted upon. Both safeguards instruments, were cleared by the Bank, and publicly disclosed both in- county and on the World Bank website prior to appraisal. The ESMF provides simple guidelines to be followed by Borrowers during project implementation to prepare site specific environmental and social impact assessment (ESIA) inclusive of an environmental and social management plan (ESMP) once the physical footprint of project sites are known. There are and will not be any private sector Performance Standards for Private Sector No financing under this operation. The policy is Activities OP/BP 4.03 therefore not triggered The policy is triggered as the project activities (Distribution line) are expected to cross some scattered natural habitats along the D-line (mostly wet and/or forested zones) in the participating countries (The Gambia, Guinea-Bissau and Mali) Natural Habitats OP/BP 4.04 Yes although without disrupting the ecosystem nor causing adverse impacts on living species, given the reduced size of the ROW. Provisions are being made in the ESMF to mitigate any unforeseen localized and site specific negative impacts. The policy is triggered as the project activities (Distribution line) are expected to cross some Forests OP/BP 4.36 Yes forested areas although without causing adverse impacts on forests or forestry activities. Provisions May 02, 2018 Page 12 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) are being made in the ESMF to mitigate any unforeseen localized and site specific negative impacts. The policy is not triggered as project involves no Pest Management OP 4.09 No activity that would require usage of pesticides. The Project will not support any activities that would adversely impact any known physical cultural resources as defined in OP/BP 4.11. However, the policy is triggered due to potential impacts on Physical Cultural Resources OP/BP 4.11 Yes underground artifacts during civil works, the ESMF and ESIA include provisions of “Chance Finds� procedures to ensure that these aspects will be taken into account in ESIAs to be developed under the ESMFs. The policy is not triggered as there are no such Indigenous Peoples OP/BP 4.10 No Indigenous Peoples as defined by the policy in these participating countries. The policy is triggered because Component 1 provides for the extension and strengthening of electricity distribution infrastructure to allow for maximum new connections. The main social risks and impacts are the possible losses of livelihoods and income, crops, trees, land and loss of community and individual equipment. Each country (Mali, Guinea-Bissau and The Gambia) has prepared a Resettlement Policy Framework (RPF) that provide basic guidelines Borrowers will follow during project Involuntary Resettlement OP/BP 4.12 Yes implementation to prepare, wherever deem necessary, a resettlement Action Plan (RAP). The RPF was prepared in a consultative and participatory manner and was publicly disclosed both in-country and in the World Bank website prior to appraisal. Likewise, during project implementation and once the physical footprint are known, site specific RAPs will be amply consulted upon and then publicly disclosed both in-country and on the World Bank website prior to the physical start of civil works. The policy is not triggered as the project will not Safety of Dams OP/BP 4.37 No finance dam works or activities associated to existing dam. The policy is not triggered as as there are no Projects on International Waterways No activities related to international waterways in the OP/BP 7.50 project. May 02, 2018 Page 13 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) The Project is not located in a disputed area as Projects in Disputed Areas OP/BP 7.60 No defined by the policy, and thus the policy is not triggered. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The project is rated as environmental category B operation with a partial assessment. No adverse long-term impacts are anticipated. It triggers 5 safeguard policies, namely Environmental Assessment (OP/BP 4.01), Physical Cultural Resources (OP/BP 4.11), Involuntary Resettlement (OP/BP 4.12), Forest (OP/BP 4.36) and Natural Habitats (OP/BP 4.04). OP/BP 4.12 on Involuntary Resettlement is triggered in the context of component 1 to cover clearance of land/ROW for new distribution networks, which might require some land acquisition leading to compensation, and potential, but very limited relocation and displacement of some households and assets. In case any land acquisition or compensation becomes necessary, the cost will be covered by the borrower. Some small-scale land acquisition and/or losses or assets may occur as a result of constructing new substations and expanding the grid. Since the physical location of the ROW and most stations/substations are unknown at this very juncture and will not be prior to appraisal, each borrower has prepared both an Environmental and Social Management Framework (ESMF) and a Resettlement Policy Framework (RPF) to help with the screening process and guide the preparation of eventual site specific environmental and Social Impact Assessment (ESIA) and/or Resettlement Action Plans (RAPs). The ESMF includes a provision to apply (i) “Chance-Finds� approaches to comply with OP/BP 4.11, as well as (ii) mitigation measures to address both the forestry and natural habitats policies, respectively OP/BP 4.36 and OP/BP 4.04.. Both the ESMF and RPF were consulted upon, reviewed by both the Government and the safeguards team and cleared by the Bank; and publicly disclosed both in-country and at InfoShop. The implementation of component 1 may also induce other environmental and social impacts which include tree cutting, soil erosion and degradation, nuisance due to dust and noises from construction activities, and risks of GBV, labor influx, HIV/AIDS and other STDs prevalence due to foreign workers on construction sites. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The project is not expected to cause long term impacts, as the environmental and social impacts associated with component 1 are mostly localized, small in scale and can be easily mitigated through the provisions in the safeguards instruments. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The current safeguards capacity of both the RCU (ECOWAS) and the three national PIUs is weak and would definitely need to be reinforced. At the RCU level, two Social Safeguards and Environmental Safeguards Specialists. Likewise, each national PIU will be staffed with similar two Social and Environmental Safeguards Specialists. At each level, these May 02, 2018 Page 14 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) will be responsible for overseeing Project safeguards compliance, more precisely, national PIUs will oversee the safeguards risk management on their respective operations. These will work closely with the two RCU safeguards specialists who will coordinate the safeguards reporting. At each national level, the Safeguards Specialists will work closely with the national environmental agency and the World Bank Specialist for consistency with both applicable national regulations and the World Bank operational policies. The RCU safeguards team will work in tandem with the World Bank Safeguards Specialists to ensure consistency and compliance on social and environmental safeguards. They all will be trained by the World Bank Safeguards Specialists in the implementation and monitoring of WBG's safeguard policies. While the RCU will ensure adherence to the safeguard documents of all agencies involved in the implementation of the project, national PIU (NPIU) will have a rather direct oversight on respective contractors’ contracts in each country. Owners Engineer's contracts will include provisions for overseeing the implementation by the contractors of the environmental and social clauses (ESC). Each PIU will produce quarterly reports on safeguards compliance and report to the RCU, which in turn will transmit to the World Bank for concurrence. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. All safeguards instruments have been consulted upon with relevant local, regional and national level authorities. The safeguards documents have been cleared by the Bank and publicly disclosed both in-country and at InfoShop on June 2018. B. Disclosure Requirements OPS_EA_DISCLOSURE_TABLE Environmental Assessment/Audit/Management Plan/Other For category A projects, date of Date of receipt by the Bank Date of submission for disclosure distributing the Executive Summary of the EA to the Executive Directors 06-Apr-2018 29-Apr-2018 "In country" Disclosure Gambia, The 04-Jun-2018 Comments Guinea-Bissau 14-Jun-2018 Comments Mali 23-May-2018 Comments May 02, 2018 Page 15 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) OPS_RA_D ISCLOSURE_T ABLE Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank Date of submission for disclosure 06-Apr-2018 30-Apr-2018 "In country" Disclosure Gambia, The 04-Jun-2018 Comments Guinea-Bissau 14-Jun-2018 Comments Mali 23-May-2018 Comments C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OPS_EA_COMP_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OPS_ NH_COM P_TA BLE OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? May 02, 2018 Page 16 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) OPS_ PCR_COM P_TA BLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? Yes OPS_IR_ COMP_TA BLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? Yes If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? Yes OPS_F O_COM P_TA BLE OP/BP 4.36 - Forests Has the sector-wide analysis of policy and institutional issues and constraints been carried out? Does the project design include satisfactory measures to overcome these constraints? Does the project finance commercial harvesting, and if so, does it include provisions for certification system? OPS_ PDI_ COMP_TA BLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for disclosure? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes May 02, 2018 Page 17 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes CONTACT POINT World Bank Pedro E. Sanchez Lead Energy Specialist Christopher Saunders Senior Energy Specialist Borrower/Client/Recipient Ministry of Finance and Economic Affairs of The Gambia H. Abdou Kolley Minister of Finance and Economic Affairs abdoukolley@hotmail.com Abdou Kolley Kolley Honorable abdoukolley@hotmail.com Ministry of Economy and Finance of Guinea Bissau João Alage Mamadu Fadia Minister of Economiy and Finances hhsantos1959@gmail.com Ministry of Finance & Economic Development of Mali May 02, 2018 Page 18 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) H. Momudu L Kargbo Minister of Finance & Economic Development mlkargbo@yahoo.com ECOWAS Commission for Mines and Energy Sediko DOUKA Commissioner for Mines and Energy sdouka@ecowas.int Implementing Agencies Energie du Mali (EDM SA) Coulibaly Dramane Managing Director drcoulibaly@edm-sa.com.ml National Water and Electricity Company (NAWEC) Baba S. FATAJO Managing Director bsfatajo@hotmail.com Electricidade e Agua da Guiné - Bissau (EAGB) Rene Barros Managing Director rbarros58@hotmail.com ECOWAS Directorate for Energy Bayaornibe Dabire Director Energy bdabire@ecowas.int FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects May 02, 2018 Page 19 of 20 The World Bank ECOWAS-Regional Electricity Access Project (Phase 1) (P164044) APPROVAL Pedro E. Sanchez Task Team Leader(s): Christopher Saunders Approved By Safeguards Advisor: Maman-Sani Issa 09-Oct-2018 Practice Manager/Manager: Charles Joseph Cormier 09-Oct-2018 Country Director: Indira Konjhodzic 09-Oct-2018 May 02, 2018 Page 20 of 20