Socialist Republic of Vietnam SFG1550 REV Ministry of Industry and Trade VIETNAM NATIONAL ENERGY EFFICIENCY PROJECT Environmental and Social Management Framework (Final) Hanoi, February 2016 CONTENTS Acronyms.........................................................................................................................v I. INTRODUCTION ..................................................................................................1 II. PROJECT DESCRIPTION ....................................................................................2 III. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ..........................6 IV. POTENTIAL PROJECT IMPACTS AND MITIGATION MEASURES ...........28 V. PROCEDURES FOR SCREENING, REVIEW, CLEARANCE AND IMPLEMENTATION OF SUBPROJECT SAFEGUARD INSTRUMENTS .............44 V.1.1. Eligibility Screening ..............................................................................44 V.1.2. Impact screening to determine sub-project category and safeguard instrument .............................................................................................................45 V.3.1. Review and approval of safeguards instruments ...................................53 V.3.2. Public consultation and disclosure of safeguard instruments ................53 V.3.3. Disclosure of EA documents .................................................................54 V.4.1. Implementation ......................................................................................54 V.4.2. Supervision and Monitoring ..................................................................54 V.4.3. Reporting ...............................................................................................55 VI. IMPLEMENTATION ARRANGEMENT ...........................................................57 ii VII. CAPACITY BUILDING, TRAINING AND TECHNICAL ASSISSTANCE ..60 VIII. ESMF IMPLEMENTATION BUDGET .........................................................62 IX. GRIEVANCE AND REDRESS MECHANISM..................................................62 X. ESMF CONSULTATION AND DISCLOSURE .................................................64 XI. ANNEXES ............................................................................................................66 Annex 1. Environmental and social safeguards checklist ....................................67 Annex 2. Subproject Environmental and Social Impact Screening Checklist .....70 Annex 3. Guidance for preparation of an Environmental Management Plan ......80 Annex 4. Environmental Code of Practice (ECOPs) ............................................90 Annex 5. PCB management procedure .................................................................97 Annex 6. Minute of Public Consultation Meeting ................................................99 Annex 7. Environmental, Health and Safety Guidelines; and Industry Sector Guidelines of the World Bank Group .................................................................103 iii LIST OF TABLES Table 1. World Bank Safeguards Policies Triggered by the VEEIEs Project 8 Table 2. EA activities and required outputs in an ODA project 13 Table 3. Environmental Assessment Process of the GoV and the World Bank 15 Table 4. Gap analyses of environmental safeguard policies between the GoV and the World Bank 22 Table 5. The typical environmental and social impacts and mitigation measures of energy efficiency improvement subprojects 30 Table 6. Summary of environmental management procedures for subprojects under VEEIEs 49 Table 7. Stakeholders’ responsibilities for ESMF implementation 58 Table 8. Proposed programs on capacity building on environmental management 61 LIST OF FIGURES Figure 1. Potential EE Measures .....................................................................................5 Figure 2. EA process in a World Bank project cycle ....................................................12 Figure 3. Environmental screening procedure ..............................................................48 Figure 4. Reporting system............................................................................................56 Figure 5. Implementation organization structure of VEEIEs ........................................58 Figure 6. Basic Complaints and Grievances Mechanism of the Project .......................64 iv Acronyms AU Administrative Unit CEP Commitment on Environmental Protection CPC Commune People Committee CPEE Clean Production and Energy Efficiency DONRE Department of Natural Resources and Environment DPC District People Committee EE Energy Efficiency EIA Environmental Impact Assessment EFO Externally Financed Output EMDP Ethnic Minority Development Plan EMP Environment Management Plan conforming to WB environmental safeguards EPP Environment Protection Plan according to Vietnamese Environmental regulations ESCOs Esco Corporation is a leader in the development of controlled environment, laboratory and pharmaceutical equipment solutions FS Feasibility Study GDP Gross Domestic Product HQ Headquarter HCFC Hydrochlorofluorocarbons compounds IBRD The International Bank for Reconstruction and Development IDA The International Development Association IEs Industrial Enterprises IFC The International Finance Corporation MOF Ministry of Finance MOIT Ministry of Industry and Trade MONRE Ministry of Natural Resources and Environment MOU Memorandum of Understanding OM Operation Manual PB Participating Bank PFIs Participating Financial Institutions PMB Project Management Board PMU Project Management Unit PPC Provincial People Committee PV Photovoltaic QCVN National Technical Regulation RE Renewable Energy RP Resettlement Plan v TA Technical Assistance UNIDO The United Nations Industrial Development Organization VNEEP Vietnam National Energy Efficiency Program VEEIEs Vietnam Energy Efficiency for Industrial Enterprises Project WB World Bank vi I. INTRODUCTION Vietnam is one of the most energy intensive countries in East Asia. Its energy intensity of GDP is steadily increasing, and its energy elasticity of GDP is estimated at 2, compared to less than 1 for most countries. As a result, the final energy consumption tripled over the past decade. Industrial growth has been one of the key drivers of Vietnam’s increasing energy intensity, accounting for 48 percent or almost half of the final energy use. Because industry is the most energy-intensive economic sector, this increase in the industrialization of Vietnam’s economy by itself contributes to the increase in Vietnam’s overall energy intensity. The Government has passed the Law on Energy Efficiency (EE) and Conservation, issued a series of decrees to promote EE by the Prime Minister, and set a target of 5-8% for energy savings from 2012 to 2015 compared to the forecast energy demand. The Vietnam National Energy Efficiency Program (VNEEP) is a national target program, and the VEEIE-ever comprehensive plan to institute measures for improving energy efficiency and conservation in all sectors of the economy in Vietnam. VNEEP Phase I (VNEEP-I) from 2006–2010 aimed to start up actively all components of the program, and VNEEP Phase II (VNEEP-II) from 2011– 2015 aims to expand each component, based on lessons learned from Phase I. In addition to the Government’s national programs, a number of parallel efforts have been initiated in direct cooperation with donor agencies. For example, Ministry of Industry and Trade (MOIT) has a US$1 million EE Subsidy Fund, which provides up to 30% investment subsidies for EE projects with a subsidy ceiling of $250,000 for each project. The government also provides funding for energy auditing, technical assistance, training, and promotion for EE. Despite these EE initiatives, significant barriers remain such that many energy saving opportunities remain unexploited. Specifically, the current Government programs have not achieved the intended results because (a) there is a lack of accountability to enforce the national- level EE targets, as EE is usually not a priority for industrial enterprises; (b) financial incentives offered by the government are insufficient; and (c) a lack of access to financing for EE.To address the above barriers and support obtaining the national target of energy savings, the Government and World Bank proceed the preparation of the Vietnam Energy Efficiency for Industrial Enterprises Project (VEEIEs). The VEEIEs will comply with applicable Vietnamese environmental legislations and the World Bank Safeguard Policies. For the Project’s features, it is expected not to finance any activity which causes significant adverse environmental and social impacts. The Project potential impacts, if any, are expected to be site-specific, and localized at small to medium magnitudes and mitigated possibility through good design and appropriate mitigation measures. A US$200 million IBRD loan will be on-lent by MOF to selected Participating Financial Institutions (PFIs). The PFIs in turn will lend the funds to IEs (Industrial Enterprises) and/or energy service companies for EE investment subprojects. In the preparation phase, these sub- projects have not yet been identified and the activities of the sub-projects may cause unknown impacts. Hence, an Environmental and Social Management Framework (ESMF) has been prepared by the MOIT to ensure that the subprojects would be implemented in an environmentally and socially sustainable manner. The ESMF sets out principles, rules, procedures and guidelines for assessing possible environmental and social impacts of the financed subprojects. These procedures and guidelines contain mitigations and/or offset adverse 1 impact measures and plans and enhance positive impacts as well as will help the implementing agency in screening sub-projects’ eligibility; determining their environmental and social impacts; identifying appropriate mitigation measures to be incorporated into the subproject reports; and specifying institutional responsibilities for implementing preventive, mitigation and compensation measures, and monitoring and evaluation. The ESMF will be an integrated part of the Project Implementation Manual to ensure that environmental and social issues will be considered together with other requirements during project implementation. II. PROJECT DESCRIPTION Project Objectives and Components Project Development Objective (PDO): The PDO is to improve energy efficiency in the industrial sector and contribute to achieving the government’s energy efficiency and GHG reduction objectives GHG reduction objectives. Projects Components: This is an integrated IBRD/IDA-funded project designed to help remove the principal barriers to investments in industrial EE projects. The technical assistance activities financed by IDA will address the knowledge, institutional and capacity building needs of the banking and industrial sectors, mitigate risk concerns of enterprises, and strengthen government supervision of industrial EE and energy conservation. Those efforts will be accompanied by an EE financial intermediary lending program, which will demonstrate viable mechanisms for financing industrial EE investments, in direct support of the Government’s EE targets and green growth strategy. Detail of project components is described as follow: Component 1 – Energy Efficiency Investment Lending (US$312 million, of which US$200 million from IBRD, US$50 million from PFIs, and US$62 million from IEs) This component consists of an EE lending program of US$312 million over five years: (a) US$200 million in IBRD debt financing; (b) PFIs will co-finance project activities, financing 20 percent of the loan to IEs; and (c) sub-borrowers (i.e. IEs) will contribute 20 percent of investments as equity financing, which is common practice for loan applications in Vietnam. A US$200 million IBRD loan will be on-lent by MOF to selected PFIs. The PFIs in turn will lend the funds to IEs and/or energy service companies for EE investment subprojects. Their lending rates will be determined based on market conditions and will adequately cover the financing and operating costs and provide for a reasonable profit margin for the PFIs. The PFIs will be selected in accordance with financial and non-financial criteria. Non-financial criteria will include demonstrated EE lending strategy/commitment, experience and ability to generate a solid EE project pipeline. The selection of PFIs will fully comply with the Bank’s OP 10.0 requirements. The IBRD funds will be allocated among the selected PFIs based on the demonstrated pipeline and remaining funds will be allocated on a VEEIE come, VEEIE served basis. An Operational Manual (OM) will be developed which outlines selection criteria for sub- borrowers and subprojects, appraisal procedures and guidelines, roles and responsibilities of 2 the PFIs and the government, PFIs’ internal institutional arrangement for project implementation, technical evaluation, environmental and social, procurement and financial management frameworks that are consistent with the Bank and Vietnamese Government rules and procedures. During project implementation, the PFIs will be responsible for identifying, appraising, and financing subprojects that meet the criteria in the OM, and bear all associated risks. Component 2 – Technical Assistance and Capacity Building for Improving Energy Efficiency (US$3million financed through IDA) This TA and capacity building component will assist: (a) MOIT and relevant government agencies, which are responsible for EE policies and targets, to implement voluntary agreements with relevant industries, improve incentives for industry to carry out EE investments and develop mandatory EE standards and benchmarks in the energy-intensive industries; (b) PFIs to improve their knowledge, experience and expertise in identifying, appraising, and implementing EE lending projects in the industrial sector and business development to generate deal flows; and (c) IEs and EE service providers (such as ESCOs) to develop bankable projects. This component will be closely linked with the ongoing Clean Production and Energy Efficiency (CPEE) on developing EE policies and industry voluntary agreements. IFC is providing advisory services to Vietinbank and is working with the Bank to identify a suitable support capacity mechanism once the PFIs are identified. Under the existing CPEE project, the Bank is providing TA to key energy consuming IEs to develop voluntary agreements, which could form a key part of the pipeline. The TA and capacity building for PFIs will include support to: (a) capacity building and training, particularly to staff at both the HQ and branches as well as risk assessment staff, including support for the development of necessary procedures, and the creation of an adequate knowledge base to evaluate and extend EE loans; (b) marketing and business development to generate a robust EE lending pipeline; (c) support to due diligence of eligible EE sub-loans, including financial, technical, social and environmental assessments; and (d) development of energy conservation-related financing instruments and risk management tools. TA and capacity building to MOIT will support: (a) assessment of National EE target program period 2010-2015 and preparation for implementation of next phase EE target program period 2016-2020; (b) strengthen the policy and legal and regulatory framework for EE in IEs; (c) develop relevant energy use standards and establishment of EE industrial benchmarks; and (d) develop ESCOs, scale up and encourage EE voluntary agreement, and conduct a communication campaign to raise awareness on EE for IEs. The TA and capacity building to the PFIs include: (i) business startup, including creation, organization, staffing, and initial business plan of the EE lending business unit (or team); (ii) capacity building and training, including support for the development of necessary financial instruments, procedures, and the creation of an adequate knowledge base to evaluate and extend energy efficiency loans; (iii) marketing and development of an EE subproject pipeline; (iv) support to due diligence of eligible EE sub-loans, including financial, technical, social and environmental assessments; and (v) development of energy conservation-related financing instruments and risk management tools. 3 The TA and capacity building for IEs will include support to: (a) identify EE projects and prepare relevant energy audits, technical design and EE project preparation; and (b) raise awareness through a communication campaign organized jointly with relevant industry associations. Capacity building on safeguards for the PFIs, ESCOs, and IEs as well as on-the- job training will be provided. TA to ensure adequate capacity for the review and implementation of safeguard issues will also be considered. A detailed TA and capacity building program and plan for MOIT, PFIs and IEs and associated procurement plan will be developed as a next stage of project preparation. A bank executed grant from the Canadian Externally Financed Output (EFO) will be used to conduct a strategic sector study for the food processing industry in Vietnam, including: - Strategic sector work on energy savings and ozone/climate benefit potential and EE benchmarking resulting from EE policy and investments in the seafood processing sector. (This work will draw from an initial sector survey that was carried out under the Phase I HCFC Phase-out Project (P115762) in Vietnam as well as the IFC study from 2010); - Workshops to inform industrial enterprises, financial institutions and government, as well as donors about opportunities for EE technologies and financing; and - Pipeline preparation support, with specific energy audits, technical pre-FS. The Bank discussed with the Government of Israel and UNIDO potential cooperation on the EE for IEs agenda. The Israeli Government has indicated its interest to support specific sectors and industries through targeted EE workshops and studies conducted in parallel to the VEEIEs project. Similar targeted activities are being discussed with UNIDO and are closely coordinated with MOIT. Project target area The project targeted to industrial enterprises (IEs) and participating financial institutions (PFIs) in nationwide scale. The IEs will benefit from adopting improved technologies and optimization of production thus reducing energy consumption and production costs, thereby increasing their overall competitiveness in the domestic and international markets. The PFIs benefit from creation of new loan product for industrial EE, building technical capacity for EE investment appraisal and monitoring, which will enable them to scale up EE lending to industries. Participating government agencies will be supported to strengthen capacity in the development of the regulatory framework, relevant EE standards and guidelines. Anticipated subproject types Energy efficiency and energy saving technologies vary by industrial sub-sectors but potential energy saving measures includes: - Energy systems: upgrading boilers and switching fuels, using co-generation facilities and electric-driven systems, including compressed air systems, electric chillers, machinery and lighting; - Process technology: upgrading and replacing equipment, machinery and facilities; 4 - Waste heat and waste use: use of waste heat (of hot/warm gases, liquids and solids) and burning combustible waste (gases, liquids, solids). Use of Renewable Energy (RE) sources in order to decrease fuel and/or electricity consumption in IEs may also be considered. Investments may include: a) co-generation facilities, or process furnaces and stoves, and b) solar water heaters for sanitary hot/warm preparation. - Use of Renewable Energy (RE) sources in order to decrease fuel and/or electricity consumption in IEs may also be considered. The diagram below depicts the energy flows and investment in typical industrial enterprises: Figure 1. Potential EE Measures Potential of Energy efficiency and energy saving is significant in intensive energy industrial sectors include cement, steel, textile, pulp and paper, food processing, bricks and ceramics, which are originated in targeted sub-projects. Hereafter is listed some of potential energy efficiency and energy saving projects of three intensive energy industrial sectors include cement, steel, pulp and paper. Energy saving and energy efficiency projects for cement industry include, but not limited as: - Using roller mill for grinding raw material, - Improving furnace fans and optimization of fans, - Installation of variable speed drivers, - Using waste fuel and waste heat recovery. - Utilization of heat exhaust for power generation. 5 Energy saving and energy efficiency projects for steel and iron industry include, but not limited as: - Oxy-fuel burners/lancing - Construction of closed production lines - Replacement of low performance air compressor, - Installation of inverter for motor to operate at low or fluctuating load. - Waste Heat Recovery utilizes the heat from flue gas (exhausted heat from electric arc furnaces, furnaces, kilns, etc.). - Combustion air preheating for reheating furnace. Energy saving and energy efficiency projects for Pulp and paper industry include, but not limited as: - Investment of a new efficient boiler for cogeneration (heat and electricity), - Replacement of motors, - Switching biomass fuel technology, - Chemical waste recovery for heating. III. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK Applicable National law and legal regulations The following Vietnamese laws, decrees and standards are applicable to the Project: - Law on Environmental Protection No 55/2014/QH13 dated June 23, 2014. - Law on Cultural Heritage (2009) for supplementary and reformation. - Decree 19/2015/NÄ?-CP dated 14/02/2015 by the Government stipulated detail the implementation of a number of articles of the Law on Environmental Protection. - Decree No.18/2015/NÄ?-CP dated 14/2/2015 by the Government on environmental protection assessment, strategic environmental assessment, environmental impact assessment and environmental protection plans. - Decree No.38/2015/NÄ?-CP dated 24/4/2015 by the Government on Waste and scrap Management. - Circular No.26/2015/TT-BTNMT dated 28/5/2015 by the Minister of Natural Resources and Environment promulgates the Circular providing for detailed environmental protection project, simple environmental protection project. - Circular No.27/2015/TT-BTNMT dated 29/5/2015 by the Minister of Natural Resources and Environment on strategic environmental assessment, environmental impact assessment 6 and environmental protection plans. - Circular No.36/2015/TT-BTNMT dated 30/6/ 2015 by the Minister of Natural Resources and Environment on Hazardous Waste management. - Decree No.80/2014/NÄ?-CP dated 06/8/2014 by the Government on the drainage and treatment of wastewater. - Decree No.59/2007/NÄ?-CP dated 09/4/2007 by the Government regulating on Solid waste management. - Decision No. 16/2015/QÄ?-TTg dated 22/5/ 2015 by the Prime Minister stipulating on recovery and dealing with disposal material. - National Technical Regulations comprise of but not limited as below:  QCVN 07: 2009/BTNMT - National Technical Regulation on Hazardous Waste Thresholds;  QCVN 23: 2009/BTNMT - National Technical Regulation on Emission of Cement Manufacturing Industry;  QCVN 22: 2009/BTNMT - National Technical Regulation on Emission of Thermal Power industry;  QCVN 19:2009/BTNMT - National Technical Regulation on Industrial Emission of Inorganic Substances and Dusts;  QCVN 12-MT:2015/BTNMT - National Technical Regulation on the effluent of pulp and paper mills;  QCVN 01-MT:2015/BTNMT - National technical regulation on the effluent of natural rubber processing industry;  QCVN 13-MT:2015/BTNMT - National technical regulation on the effluent of textile industry;  QCVN 08:2008/BTNMT - National technical regulation on surface water quality;  QCVN 09:2008/BTNMT - National technical regulation on underground water quality;  QCVN 10:2008/BTNMT - National technical regulation on Coastal water quality;  QCVN 11:2008/BTNMT - National technical Regulation on effluent of aquatic product processing industry;  QCVN 14:2008/BTNMT - National technical regulation on domestic wastewater;  QCVN 05:2013/BTNMT - National technical regulation on ambient air quality;  QCVN 06:2009/BTNMT - National technical regulation on hazardous substances in ambient air;  QCVN 40:2011/BTNMT - National Technical Regulation on Industrial wastewater;  QCVN 26:2010/BTNMT - National Technical Regulation on Noise; 7  QCVN30:2012/BTNMT - National Technical Regulation on Industrial Waste Incinerator; World Bank Safeguard Policies Triggered The World Bank's environmental and social safeguard policies are a cornerstone of its support to sustainable poverty reduction. The objective of these policies is to prevent and mitigate undue harm to people and their environment in the development process. These policies provide WB’s requirements to the borrowers in the identification, preparation, and implementation of programs and projects. The World Bank environmental and social safeguards policies that are triggered by VEEIEs are listed in below: Table 1. World Bank Safeguards Policies Triggered by the VEEIEs Project World Bank Safeguard policies Triggered Environmental Assessment (OP/BP 4.01) Yes Natural Habitats (OP/BP 4.04) No Forests (OP/BP 4.36) No Pest Management (OP 4.09) No Physical Culture Resources (OP/BP 4.11) Yes Indigenous Peoples (OP/BP 4.10) Yes Involuntary Resettlement (OP/BP 4.12) Yes Safety of Dams (OP/BP 4.37) No Projects on International Waters (OP/BP 7.50) No Projects in Disputed Areas (OP/BP 7.60) No The World Bank definitions and requirements for environmental safeguards policies triggered are presented as the following paragraphs: OP/BP 4.01 - Environmental Assessment In World Bank operational policies, the purpose of Environmental Assessment is to improve decision making, to ensure that subproject options under consideration are sound and sustainable, and that potentially affected people have been properly consulted. To meet this objective, the World Bank policy defines procedures to: (a) identify the level of environmental risk (screening) that originated from a project, (b) assess the potential environmental impacts associated with the risk and how they should be reduced to acceptable levels (environmental assessment and management), (c) ensure the views of local groups that may be affected by the project are properly reflected in identifying the environmental risk and measures of mitigating and managing any impacts (public consultation), (d) make certain that the procedures followed in the environmental assessment process are adequately disclosed and transparent to the general public (disclosure), and (e) includes measures for implementation and supervision of commitments relating to findings and recommendations of the environmental assessment (environmental management plan). 8 According to the OP/BP 4.01, the WB classifies the projects based on the extent, location, sensitivity, and scale of the project and the nature and magnitude of the potential environmental impacts. A project which causes significant adverse environmental impacts that are diverse, irreversible and unprecedented is categorized as A and for this project, a full Environmental Assessment (EA) needs to be conducted. Category B projects are those with less significant adverse impacts which are site-specific, few if any of them are irreversible; and in most cases mitigation measures can be designed more readily than for Category A projects. Category B project will require preparation of Environmental Management Plan (EMP) or an EIA with scope narrower than that of category A. The project that causes minimal or no adverse impact is categorized as C and beyond screening, no environmental assessment is required. Last one is Category Financial Intermediary (FI) if it involves investment of Bank funds through a financial intermediary, in subprojects that may result in adverse environmental impacts. VEEIEs is categorized as FI a project involving Financial Intermediaries which are called named as Participating Financial Institutions (PFIs). An Operational Manual (OM) will be developed which outlines selection criteria for sub-borrowers and subprojects, appraisal procedures and guidelines, roles and responsibilities of the PFIs and the government, PFIs’ internal institutional arrangement for project implementation, technical evaluation, environmental and social, procurement and financial management frameworks that are consistent with the Bank and Vietnamese Government rules and procedures. During project implementation, the PFIs will be responsible for identifying, appraising, and financing subprojects that meet the criteria in the OM, and bear all associated risks. In addition, during the subproject implementation, PFIs and MOIT will be responsible for supervision and providing support for the safeguard implementation. PFIs and MOIT shall follow the procedures as pointed out in the ESMF to ensure the subproject comply with the Bank’s safeguard policies and national and local requirements. The ESMF shall be incorporated in the project’s OM. By design, the VEEIEs Project involves the small construction activities for installation or replacement of energy efficient technologies and equipment under Component 1. The Project only triggers the WB safeguard policy on Environmental Assessment (OP/BP 4.01) and Physical Cultural Resources (OP/BP 4.11); Indigenous Peoples (OP/BP 4.10) with the presence of ethnic minorities or their collective attachment to land/natural resources in the subproject areas; and Involuntary Resettlement (OP/BP 4.12) the possibility of the involuntary taking of land, leading to relocation of loss of shelter, loss of assets or access to assets, or loss of income sources or means of livelihood. Any subproject triggering other safeguard policies ank has to be prior consulted with the WB. The Technical Assistant (TA) under component 2 mostly involve capacity building activities. These activities usually do not have potential adverse environmental and social impacts and risk. In fact, it would result in enhancement of safeguard performance of subproject under Component 1. For that, these TA are categorized as C and none safeguard instrument will need to be prepared for these activities. Nevertheless, under Component 2, it is indicated that technical pre-feasibility studies will be carried out for pipeline support for the food processing industry under Canadian Externally 9 Finance outputs. For these studies, the TOR for these pre-FS will include requirements on screening, analysis, and on environmental and social aspects so as to ensure that the proposed activities are in accordance to the Bank safeguard policies and the national regulations. OP/BP 4.11 Physical Cultural Resources The objective of this policy is to avoid, or mitigate adverse impacts on cultural resources from development projects that the World Bank finances. Physical cultural resources include movable or immovable objects, sites, structures and groups of structures, natural features, and landscapes that have archeological, paleontological, historical, architectural, religious, aesthetic or other cultural significance. As a part of the subproject’s environmental impact assessment process, the one that have impacts on physical cultural resources that are legally protected, and/or considered especially important or sensitive particularly to local groups (e.g. gravesites), will not be eligible for financing under the VEEIEs. The project would not involve significant excavations, demolition, moving of earth, flooding, or other environmental changes. It is not expected that the Project will affect any known PCR. However, there is a possibility that the some unknown PCR may be revealed during the subproject implementation as they include excavation activities. Therefore, the policy is triggered and a chance finds procedure has been prepared and included in the ESMF, site- specific subproject safeguards instruments, bidding, and contractual documents. OP/BP 4.10: Indigenous Peoples The policy is triggered due to the potential presence of ethnic minorities or their collective attachment to land/natural resources in the subproject areas. The project will ensure that ethnic minority communities will fully benefit from the project and that they will be fully informed and consulted about the project, its potential impact and mitigation measures. Ethnic Minority Planning Framework (EMPF) has been prepared by Appraisal to guide the compliance with the World Bank’s OP 4.10. The EMPF will include an Annex with guidance for the preparation of SA among Ethnic Minority communities or alternatively include OP 4.10, Annex A – Social Assessment at the end of the document. OP/BP 4.12: Involuntary resettlement The types of EE projects to be financed under this project could include: (a) adoption of energy saving industrial technologies (e.g., efficient industrial boilers, kilns, and heat exchange systems); (b) recovery and utilization of wastes and waste heat; (c) installation of highly efficient mechanical and electrical equipment (e.g. motors, pumps, heating and ventilation equipment); and (d) industrial system optimization to reduce energy use. It will be likely that the EE subprojects financed under the proposed loan will be within the existing premises of industrial facilities. However, this policy is triggered to anticipate the potential need of land acquisition required for subprojects identified in implementation cycle. By appraisal, the resettlement policy framework (RPF) has been prepared to guide the compliance with the World Bank’s OP 4.12 and where relevant the preparation of Resettlement Plan during project implementation. 10 The World Bank Group Environmental, Health & Safety (EHS) General Guidelines The EHS Guidelines are technical reference documents with general and industry-specific examples of Good International Industry Practice (GIIP), as defined in IFC's Performance Standard 3 on Pollution Prevention and Abatement. The EHS Guidelines contain the performance levels and measures that are normally acceptable to The World Bank Group and are generally considered to be achievable in new facilities at reasonable costs by existing technology. When host country regulations differ from the levels and measures presented in the EHS Guidelines, projects are expected to achieve whichever is more stringent. If less stringent levels or measures are appropriate in view of specific project circumstances, a full and detailed justification for any proposed alternatives is needed as part of the site-specific environmental assessment. This justification should demonstrate that the choice for any alternate performance levels is protective of human health and the environment. Industry sector Guidelines of the World Bank Group. In addition, depending on the nature of the proposed subprojects, relevant WBG’s Industry Sector Guidelines shall be applied during the implementation of the VEEIE. These guidelines include but not restricted for the following: - For the subprojects involve utilization of forestry production such as pulp and paper mills: ï‚· Environmental, Health, and Safety Guidelines for Sawmilling & Manufactured Wood Products ï‚· Environmental, Health, and Safety Guidelines, Pulp and Paper Mills - For the subprojects on Agribusiness or Food Production ï‚· Environmental, Health, and Safety Guidelines for Food and Beverage Processing - For subprojects on cement and lime manufacturing, ceramic tile, textile and integrated steel mills ï‚· Environmental, Health, and Safety Guidelines for Cement and Lime Manufacturing ï‚· Environmental, Health, and Safety Guidelines for Ceramic Tile and Sanitary Ware Manufacturing ï‚· Environmental, Health, and Safety Guidelines or Textile Manufacturing ï‚· Environmental, Health, and Safety Guidelines for Integrated Steel Mills The EHS Guidelines and Industry Sector Guidelines are included in Annex 7 of the ESMF. Outline of EA procedure of the investment project For a project that is a World Bank-financed investment project, a EA standard procedure has prescribed and become a widely recognized tool used in development planning and in the World Bank’s project cycle. The project cycle consist of the steps are illustrated in the Figure 2 below. 11 Project cycle Environmental Assessment Category C Identification Screening Pre-Feasibility Category B Study Category A Full EA required EA instruments determined 1stPublic Consultation Feasibility Terms of Reference Terms of Reference and EIA Team Selection EIA/ESMF Team Selection Study Preparation (as appropriate) Project Planning EIA/ESMF/EMP Preparation EIA Preparation - Draft ESMF/EIA/EMP and - Draft EIA, EMP (Cat A can also have Detailed Design ESMF) - Public consultation on draft EIA/ESMF/EMP - Draft ESMF/EIA/EMP meeting government - Public consultation on draft EIA, EMP and the Bank requirements - Draft EIA, EMP meeting government and the - Disclosure of ESMF, EIA and/or EMP Review EIA, EMP Review EIA/ESMF/EMP Appraisal - Finalize EIA, EMP - Finalize EIA/ESMF/EMP Project - EIA, EMP cleared by the Bank - EIA/ESMF/EMP cleared by the Bank Appraisal and approved by the Government - EIA/ESMF/EMP approved and accepted by - Final disclosure of safeguard the Government Negotiation Loan Incorporate environmental provisions (ESMF/EIA/EMP) Negotiation in loan document Loan Approval Implementation Project Environmental supervision based Implementation and on EIA/ESMF/EMP and loan Supervision agreement Completion Implementation Evaluation of environmental aspects in Completion completion and evaluation report Figure 2. EA process in a World Bank project cycle As defined in Article 8 (Decree 38/2013/ND-CP dated 23/4/2013 on management and utilization of official development assistance and concessional loans from donors), the process of mobilization, management and utilization of ODA and concessional loans contains five stages: (i) Formulation and approval for the aid list (ii) Preparation, appraisal, approval of program or project dossals 12 (iii) Signing International treaties on ODA and concessional loans (iv) Organizing the implementation of programs or projects (v) Supervision and evaluation of programs and projects The EA process in relation to the ODA project cycle according to the Government of Vietnam (GoV) regulation is described in Table 2 below. Table 2. EA activities and required outputs in an ODA project GoV's Project stages EA Activities Outputs EA process Formulation and - Identify potential environmental and - Preliminary social impacts potentially generated from analysis of approval of aid list proposed projects/programs. environmental and Screening - Develop strategy/plan to address or social impacts is mitigate the identified project-related included in a impacts. section of DPO* document. Preparation, - Confirm the project category for EA - Detailed EIA preparation as guided in GoV Regulation and/or EPP appraisal, approval (Decree 18/2015/ND-CP on approved. EIA preparation - EIA Environmental Protection Planning, - Summary of EIA or appraisal Strategic Environmental Assessment, EPP is presented as Environmental Impact Assessment, and one chapter in Environmental Protection Plans) and/or Feasibility Study consult with relevant environmental (FS) report. authorities for guidance. - Prepare EIA report or EPP in accordance with Decree 18/2015/ND-CP and Circular 27/2015/TT-BTNMT on guiding implementation of Decree 18/2015/ND- CP. - Develop an Environmental Management and Monitoring Program (EMMP) as a part of an EIA. Negotiation and - No action required - Not required signing of concessional loans. Implementation - Project owner and its representative - Report on (normally PMU) are responsible for implementation of Supervision of EIA or implementing the project according to EMMP/sampling EPP compliance agreements derived from the EIA or EPP program prepared reports. (if required). - Environmental management agency is responsible for inspecting and supervising implementation of commitments stated in the project EIA of 13 EPP. Completion - Before operation of a project can begin, - Certificate for the relevant state environment authority completion of Final evaluation reviews/inspects the project to ensure that mitigation the project has implemented all construction requirements for environmental protection as laid out in its EIA and/or EPP. * Detailed outline of a DPO is described in Annex II A- Decree 38/2013. ** Content of investment project documents (Feasibility study report) is referred to in Annex III A- Decree 38/2013 The World Bank EA process in each investment lending stage and in relationship to requirements of the Government of Vietnam is described synthetically in Table 3. 14 Table 3. Environmental Assessment Process of the GoV and the World Bank Indicative World Bank Government Timing of EA Environmental Environmental Responsibility of Government Responsibility of the World Bank Process1 Safeguards Management Requirements Requirements Identification - Shortlist of suitable - Draft of detailed project - Assign environmental and Conduct and complete internal project (3 - 12 months) investment proposals is outline (DPO), as social staff to work with the concept note (PCN) stage safeguard requested from GoV for required by the GoV on WB team. review process that includes: initial review. Official Development - Provide the WB team with all - Screening project for (1) major potential Assistance, which - Potential Safeguard available information/data on environmental and social issues, (2) includes one section on Policy issues associated the potential identifying Safeguard Policies to be summary of EA, is with the project project/subprojects related to triggered, and (3) categorizing the prepared. identified. project location, scope, and project; type of investment, and - Environmental - Assessing safeguard capacity of the sensitivity (including any pre- category of the project client; feasibility studies, EIAs, assigned. - Advising the Borrower on the World environmental protection - Safeguards instruments 2 plans (EPPs), etc.). Bank’s environmental procedures and determined. requirements, including consultation - Conduct site visits and carry and disclosure; and out meetings with stakeholder on potential environmental - Advising the Borrower on the type of impacts. EA report or safeguard instruments to be prepared (e.g. EIA, ESMF, EMP, etc.) 1 This indicative timing of the EA process varies depending on the project complexity. 2 Environmental Protection Programme (EPP) is a simplified EIA for small scale and low risk projects as per government EA regulation. 15 Preparation - For Category A - Qualified consultant for - For Category A project: - Review, provide comments on, and clear projects: i) TORs for preparing EA reports Conduct at least 2 public the draft TORs for Category A projects. (10 months – full EIA reviewed and and other documents consultations as required by three years) - Conduct site visits and join stakeholder cleared by the World selected. the World Bank. meetings (if necessary) for addressing Bank; ii) at least two - TOR for EA - For Category B: Prepare environmental issues/concerns. public consultations, satisfactory to the TORs as appropriate for one shortly after - Provide technical assistance during EA World Bank. EIA/ESMF/EMP. environmental preparation, including guidance to screening and before - Budget for the contracts - Ensure that the TORs are Borrower on the EA content and public the TORs is finalized (if paid by counterpart technically reviewed by the consultation. and one when the draft fund) is available. World Bank team. - Review, provide comments on, and EIA is prepared; iii) a - EA (EIA, EPP) meeting - Hire consultant for prepare ensure quality of the EA reports. separate Executive the government and the EA reports, including Summary of the EIA to - Consider the Borrower’s institutional WB requirements and consultation during the be submitted to the capacity to implement safeguards approved by the process. Board. requirements and design project government. - Review and ensure quality of accordingly to enhance capacity where - For Category B - Feasibility study the draft EA reports. needed. projects: at least one meeting both public consultation. - Ensure that EA reports - For a Category A and non-transferred government and WB approved by relevant project: Send EA reports to Regional - EA instruments requirements. authorities. Safeguard Secretariat (RSS) for review (EIA/ESMF/EMP) - Distribution of the EA and final clearance. prepared meeting - Ensure that all relevant draft summary (in English) to government and WB safeguard instruments are - For a Category A project: the Executive the Board of Executive requirements. properly disclosed locally as Summary (in English) of the EIA to the Directors of the WB. required by WB. Board before the departure of the - Establish timeline and - Clear of Borrower’s appraisal mission. requirements for - Request WB to disclose the safeguards monitoring independent (e.g., draft safeguards instruments - Help the Borrower to disclose the and reporting expert panel for high in Vietnam at the InfoShop. project draft and final safeguards requirements in the risk Category A instruments at the InfoShop. Project Operations - Officially submit all EA projects) or third-party reports to WB for review and 16 monitoring (audits) Manual. clearance. when anticipated. - Officially submit the EA - Disclosure of all reports to relevant agencies relevant safeguards for appraisal and approval - instruments locally and Ministry of Natural Resources at the InfoShop before and Environment - (MONRE/ start of appraisal local authorities at provincial mission and 120 days3 or district level). before the Board date. - Finalize the EAs reports - World Bank clearance taking into account the World of all EA reports if they Bank’s comments and send are acceptable to the back to the World Bank for its World Bank before the final review and clearance. departure of the - Make proper final disclosure appraisal mission. If of all EA reports locally in improvement of EA accordance with the World reports is needed World Bank requirements. Bank’s conditional clearance is issued. Appraisal - The EA reports - EA reports approved by - Finalize all EA reports based - Review the EA studies and provide finalized and relevant authorities on the conditions of their comments (if any) to ensure that the (1 – 3 months) acceptable to the World (Ministry of Natural conditional clearance by the instruments are consistent with WB Bank before the end of Resources and World Bank. safeguard policies. the appraisal mission, if Environment - Ensure that all relevant final - Ensure that EA reports are properly conditional clearance (MONRE)/Local safeguard instruments are revised and finalized, and clear the EA 3 According to the Pelosi Amendment, a US government requirement, the U.S. cannot vote in favor of actions that have significant impact(s) on the "human environment" unless an EA (including any relevant supporting documents such as EMP, RAP, IPP etc.) has been disclosed at least 120 days before the Board date: (a) in-country, and (b) at the Bank's InfoShop. This covers all projects with significant impact on the human environment, regardless of category assigned by the Bank. 17 was issued to the government) properly disclosed locally as reports if they are satisfactory. Borrower before the required by WB. - Proper disclosure of - Ensure that final EA reports are properly appraisal. final EAs reports in the - Send the World Bank disclosed locally and at the InfoShop. - Final EA studies project area confirmation on disclosure of - Ensure that safeguards monitoring and properly disclosed final EA reports. reporting requirements included in the locally at project sites - Request WB to disclose the Project Operations Manual. (in Vietnamese),and at final safeguards instruments the InfoShop (in - Ensure that the Borrower’s system for at the InfoShop. English) as required by monitoring and supervision of the World Bank policy - Ensure that safeguards environmental compliance is on Access to monitoring and reporting established. Information requirements included in the - Ensure that environmental management Project Operations Manual. - Incorporation of requirements (e.g., EIA/EMP/ESMP) safeguards - Establish a system for are covered in covenants of Financing requirements in the monitoring and supervision of Agreement. Project Operations environmental compliance Manual during project implementation. - Environmental management requirements (e.g., EIA/EMP/ESMP) covered in covenants of Financing Agreement Negotiation - The Borrower's - Review and agree on - Understand environmental - Revise the environmental management and Board understanding and environmental management requirements requirements in the Financing Approval acceptance of the management (e.g., EIA/EMP/ESMP) Agreement if needed and help the environmental requirements (e.g., covered in covenants of Borrower understand them. (3 – 6 months) management EIA/EMP/ESMP) Financing Agreement. requirements covered covered in covenants of 18 in the Financing Financing Agreement. Agreement. Implementati - Environmental - Compliance with the - PMU ensures environmental - Provide technical support to the on management GoV environmental management system of the Borrower and supervise environmental satisfactorily management project is properly compliance based on Financing addressed. regulations and functioning. Agreement, EIA, EMP, and ESMF. requirements of the (5 – 6 years) - A system for - Satisfactory ongoing World Bank’s related environmental safeguard compliance in environmental monitoring and accord with EMP or ESMF. safeguard policies. supervision established and functional. - EA report including EMP revised if there are changes in the project design. Completion - Review of - GoV project completion - Prepare dossier of request for - A separate WB task team leader to environmental report. certifying the application of prepare an ICR. (3-6 months) safeguard environmental protection - The World Bank Task Team reviews implementation in the works and measures for final monitoring reports and manages Implementation project operation. the completion report process (ICR) to Completion Report - Prepare ICR report meeting ensure (1), (2), (3), and (4) are (ICR) report submitted the GoV and the World Bank adequately addressed in the ICR report by the Borrower. The requirements. and request the Borrower to resolve any review will address (1) outstanding safeguards issues. the key safeguards - Follow-up on any outstanding issues in operation, (2) safeguards issues until they compliance with the are satisfactorily addressed. World Bank policy and 19 procedural requirements, (3) any problems that arose and their resolution as applicable, and (4) any significant deviations. 20 GAPs analyses of safeguard policies between the GoV and the World Bank In Vietnam, the most important steps relate to EA in the project cycle are the preparation and approval stages. During preparation and approval stages, two principal aspects are related to EA documentation. The GoV system normally requires Feasibility Study (FS) reports (including basic design) and separate EIA or Environmental Protection Plan (EPP) documents (with structure and content as defined in Decree 18/2015/ND-CP). In addition, a required summary of the EIA report is presented in the FS report. The separate (and stand-alone) EIA or EPP is reviewed and approved by the competent agency, ie. Ministry of Natural Resources and Environment (MONRE), provincial Department of Natural Resources and Environment (DONRE), or district level-agency. For the Law on Environmental Protection in 2014 and legal document under Law showed Vietnam’s efforts directed to policy harmonization between GoV and donors. The application of environmental assessment policies in Vietnam has gradually narrowed the gap between the two systems. However, significant differences remain between GoV environmental safeguard policies and those of the World Bank. These differences are listed in Table 4 below: 21 Table 4. Gap analyses of environmental safeguard policies between the GoV and the World Bank EA Decree 18/2015/ND-CP, Circular 27/2015/TT- Process OP/BP 4.01 on Environmental Assessment Gap Filling Measures BTNMT Stage Categories (A, B, C, FI) Categories: (I, II, and III) - Use the World Bank’s discretionary Non-prescriptive on a case by case basis for Prescriptive, fixed regulated in Annex I, II, III - (on a subproject-by-subproject categorization, safeguards policies List of projects subject to requirements of EIA basis) approaches in screening application, and EA instrument identification. report submittal and approval (Decree projects the significance of its impacts, and subsequently to + The World Bank will classify the project as 18/2015/ND-CP). ascertain the project’s EA category. category A, B, C, FI according to the nature + Normally the project owners self-screen the and magnitude of potential environmental and project based on the categorization indicated in social impacts. Decree 18/2015/TT-BTNMT and consult the Provincial Department of Natural Resources and - Examine the magnitude and Category A: Full EA required significance of the project impacts Environment (DONRE) or Vietnam Environment Category B: EA, ESMF, or EMP required Administration (VEA) for the appropriate based on the project type and scale, classification and EA report requirement of the project location, sensitivity of Category C, no EA required. project. All the prescribed projects listed as per environmental and social issues, Category FI: EA or ESMF required. Decree 18 need to prepare EA. and nature and magnitude of potential impacts. + All projects are not listed in Annex I, II, III Establish an Environmental Protection Plant to be submitted to Nature Resource and Environmental Division under district-level People Committee for appraisal and approval. Screening And all entities are in listed in Annex IV that is not subject to requirements of EPP submittal and approval. 22 - Depending on the project impact, a range - The type of EA instruments such as SEA or EIA - Follow the World Bank of instruments are used to meet the World is decided based on Annex I, II, and III of requirements on the type of EA Bank’s requirement, these include: ESMF, EA instrument Decree 18/2015/ND-CP. instrument needed specific EA; EMPs, sectoral& regional EA; SEA; hazard or risk assessment; environmental audits. The World Bank provides general guidance for implementation of each instrument. - The World Bank helps Borrower draft the - TORs for EA are not required. - TORs for SEA, ESMF, EIA, and TOR for EA report and identify the scope EMP are a good practice to follow. of EA, procedures, schedule and outline of - Follow the World Bank’s TORs, the EA report. - Normally after consultation with the local scoping, and consultation DONRE or VEA for the EA category, the - For Category A projects, EIA TORs is requirements. project owner will proceed with EA report required and should be cleared by the Bank, preparation. and scoping and consultation are conducted Scope for preparation of the TORs for the EA report. 23 - During EA process, the Borrower consults - During EIA preparation, the project owner shall - EA consultation as per government project affected groups and local NGOs consult (i) The People’s Committee of the EA regulation is not enough and the about the project’s environmental aspects commune, ward or township (below referred to Borrower and its consultant need to and takes their views into account. as commune level) in which the project is to be follow the World Bank’s implemented; and (ii) representatives of requirements on consultation and - For Category A projects, the Borrower communities and organizations directly affected disclosure of information during consults these groups at least twice: (a) by the project by sending a written request for EA process. shortly after environmental screening and consultation together with EIA report /EPP. before the TORs for the EA are finalized; - Good consultation bring benefits to After 15 working days of receiving a written and (b) once a draft EA report is prepared. the project design and contributes request for consultation, if a consulted agency In addition, the Borrower consults with to project environmental outcomes fails to send a written reply to the project owner, such groups throughout project it is regarded as agreeing with the project implementation as necessary to address owner’s investment plan. EA-related issues that affect them. For Category B project at least one public - For communities and organizations under consultation needs to be conducted. directly affected of the project shall be carried out in the form of community meeting co- - For meaningful consultations, the chaired by the commune People’s Committee Borrower provides relevant project Public consultation and the PO. The representatives of documents in a timely manner prior to organizations and communities directly affected consultation in a form and language that are by the project shall be convened to. Results of understandable and accessible to the group the meeting shall be recorded in writing, and all being consulted. discussed opinions, signatures of the project - Minutes of the public meetings are owner representative and representatives of included in the reports. involved parties. 24 - Before the World Bank proceeds to project - After an EIA report is approved, the project - Follow the World Bank’s Policy on appraisal the EA report must be made owner shall formulate, approve and publicly Access to Information Policy in available at public place accessible for display its environmental management plan at disclosure of project information, project-affected groups and local NGOs. the office of the commune-level People’s including EA instruments. Disclosure Once the World Bank officially receives Committee of the locality in which consultation the report, it will make the EA report in of the community is made for people’s English available to the public through the information, examination and oversight. Infoshop. (Article 16, Decree 18/2015/ND-CP). - For category A project, the Borrower - Not regulated in Vietnam policies. - Follow the World Bank retains independent EA experts not requirements to avoid conflict of - Project owner shall make, or hire an institution affiliated with the project to carry out EA. interest meeting the conditions provided in Clause 1, - For category A projects of high risk or Article 13 (Decree 18/2015/ND-CP) to prepare multi-dimensional environmental an EIA report. Project owner or consulting concerns, the Borrower should also engage service provider must fully meet the following an advisory panel of independent, conditions: (i) Having staff specialized in internationally recognized environmental environment with university or higher degrees; specialists to advise on aspects of the (ii) Having staff holding university or higher project relevant to EA. degrees and certificate on EIA in the fields Independent Expert relevant to the project; (iii) Having physical- - Experts/consulting firm will be selected technical foundations and special-use devices through bid process under strict for measuring, taking, processing, and observation of the World Bank. analyzing environmental samples, which meet technical requirements. In case of unavailability of qualified special-use devices, having a contract to hire a capable institution. 25 - Review responsibility is internal to the - Environmental impact assessment reports shall - In addition to the Government World Bank. If the EA report is be appraised by appraisal councils or appraisal requirements, follow the World satisfactory, the World Bank will issue its service providers (only applied in Category-A Bank’s review and clearance clearance memo. If the EA report needs to project). procedures. be improved the World Bank will issue a - Delegates review responsibility to MONRE and Number and language of EIA Clearance procedure conditional clearance with the DONRE depending on kind and scale of project understanding that the Borrower will revise as prescribed in annex II of Decree the EA to satisfy the World Bank for the 18/2015/ND-CP final clearance. - The appraisal will take place no later than 60 days at MONRE level and 45 days at DONRE level and 30 days at other levels for after receipt of a full eligible EIA or EPP. - Number of copies not specified. - The project owner has to submit at least seven - Follow the World Bank’s guidance copies of EIA report (depend on the number of and the Government requirements - Language requirement: English for appraisal council members) and one copy of the Vietnam with an Executive Summary in Feasibility Study or the Economic-Technical English for a Category A project. required for appraisal argument for the proposed project. - No requirement for feasibility survey: the World Bank does not advance discussions on any investments without the preparation by the Borrower of the minimum required technical studies that prove the investments are feasible from socio-economical and technical point of view. 26 Category A project contains the following Category II and III Projects contain the following - For Category B projects, follow the major contents: major contents: government EA regulation. - For Category A projects, two - Should be in line with OP 4.01, Annex B - - Should be in line with Circular 27/2015/TT- options exist: i) follow two separate Content of EIA report Content of an Environmental Assessment BTNMT EIA outlines of the World Bank and Report for a Category A Project. the Government; ii) follow then - Category B EIA reports typically follow government EIA format with similar table of contents as Category A. incorporation of the World Bank requirements in alternative analysis, cumulative impact assessment, public consultation and disclosure, and EMP requirements. - During project implementation, the World - The local DONRE is entrusted to supervise the - Project environmental management Bank supervises the project’s environmental compliance of the project. system needs to be established to environmental aspects on the basis of the monitor and supervise safeguards - By the end of project construction stage, the environmental provisions and the compliance during implementation. Environmental Management Agencies will Borrower’s reporting arrangement agreed coordinate with Construction Management - Follow requirements in project in the loan agreement and described in the Agencies to supervise the compliance of Loan Agreement, EMP, and other project documentation, to determine environmental management activities stated in contract with contractor to monitor whether the Borrower’s compliance with EA supervision EA study. and supervise safeguards environmental covenant (primarily with compliance. EMP) is satisfactory. If compliance is not satisfactory, the World Bank will discuss with the Borrower action necessary to comply. 27 As a result, gaps as analyzed above, this ESMF shall consist of the World Bank’s guidance and the Government requirements to set out the principles, rules, guidelines and procedures to assess the environmental and social impacts of the VEEIEs Project to ensure the EA process is carried out in compliance with national legislation and OP/BP 4.01. It provides an environmental and social screening process to allow for identification, assessment and mitigation of potential impacts by proposed subprojects/activities under the VEEIEs Project at the time the detailed aspects are known in provision V hereafter. It also serves as guidelines for the development of sub-project/site-specific Environmental Management Plans (EMPs), Environmental Assessments (EAs), due diligence reports. The ESMF will be used to screen and manage potential environmental and social impacts arising from the VEEIEs‘s subprojects implementation. IV. POTENTIAL PROJECT IMPACTS AND MITIGATION MEASURES Potential Impacts Overall this project brings benefits to industries and the environment by contributing to reduction of GHGs and pollutants, increases energy savings and encourages the promotion of the environmentally good industry practices. The sub-project may involves the small construction for installation or replacement of energy efficient technologies and equipment. The possible environmental impacts associated with the sub-projects during construction/installation could be noise, dust, labor safety, and disposal of wastes during the installation of new equipment, waste management for the inefficient equipment being removed; and in some case, the oil excluded from transformer which may contain PCB. The possible impacts during operation period of new equipment and facilities may include safety issues; air emission, solid waste, and wastewater which are considered as at a lower amount or lesser polluted than those arisen from old technologies and equipment. It is anticipated that most the sub-projects under VEEIEs are category B with the above noted typical impacts which are assessed as localized, varying from small to moderate scale and mitigation measures could be readily designed. In any case, all subprojects will be screened carefully case by case, to determine the appropriate category and environmental safeguard instruments to manage the potential impacts. Mitigation measures Given that most of the key impacts will occur due to small civil works, many of the potential negative impacts on physical, biological, and social environment could be mitigated through a set of general measures that are typically applied to most of construction projects to minimize impacts such as noise, dust, water, waste, etc. As part of the Environmental Management Plan (EMP) for the project these general measures have been translated into a standard environmental specification namely the Environmental Codes of Practice (ECOPs) (Annex 4) and it will be applied to mitigate typical impacts of small civil works. The ECOP which is part of the EMP describes typical requirements to be undertaken by the contractors and supervised by the construction supervision engineer during construction. They have been designed for this project to be applicable to the range of small to medium sized civil 28 works. Relevant clause of the ECOPs will be included as an annex in the bidding and contract documents during detailed design stage. Scope and content of the ECOPs is as follows: Scope: Construction and installation activities for small works governed by these ECOPs are those whose impacts are of limited extent, temporary and reversible, and readily managed with good construction practices. The typical mitigation measures have been identified for the following aspects: - Dust generation - Air pollution - Impacts from noise and vibration - Water pollution - Drainage and sedimentation control - Management of stockpiles, quarries, and borrow pits - Solid waste - Management of dredged materials - Disruption of vegetative covers and ecological resources - Traffic management - Interruption of utility services - Restoration of affected areas - Worker and public safety - Communication with local communities - Chance findings However, there may be site-specific impacts that require site-specific measures both during construction and operation stages such as mitigation measures for UXO clearance; disposal of oil containing PCB during the replacement of new technology; disposal of old parts and equipment; management of air emission, solid waste and wastewater from the operation of facilities during the operation period. These measures are to be identified and incorporated into the subproject EMPs. The potential environmental impacts and mitigation measures for certain specific EE investments are described in Table 5 below. 29 Table 5. The typical environmental and social impacts and mitigation measures of energy efficiency improvement subprojects Energy efficiency improvement project Environmental and social impacts Mitigation measures Projects related to energy systems Replace the conventional lighting system by In construction phase: In construction phase: energy efficiency lighting system (ex: energy - Safety issues during the installation of new - Waste management, safety measures as saving lamp, LED, etc.) equipment i.e. work at height, electricity described in the ECOPs. shock, etc. - Hazardous waste should be identified, labeled - Disposal of hazardous waste (light tubes); and stored in a safe place, then transferred to and solid waste during the installation of new licensed organization for treatment according to lighting system hazardous management requirement. In operation phase In construction phase: - Discharge hazardous waste (fluorescent - Issue Operation manual and safety procedures. tubes) - Waste management procedures shall be in place. - Save in energy consumption during production process resulting in lessen natural resource save and conservation and reduce total annual GHG. Replace the conventional cooling system by the In construction phase: In construction phase: system that apply inverter - Electrical waste. - Waste management, safety measures as - Discharge refrigerant (HCFC) from replaced described in the ECOPs. air-conditional equipment. - Hazardous waste should be identified, labeled - Safety issues during the installation of new and stored in a safe place, then transferred to equipment licensed organization for treatment according to hazardous management requirement. In operation phase In operation phase: - Electrical waste; - Waste management measures and procedure shall be in place. Hazardous waste should be 30 Energy efficiency improvement project Environmental and social impacts Mitigation measures - Save in energy consumption during identified, labeled and stored in a safe place, then production process resulting in lessen natural transferred to licensed organization for treatment resource save and conservation and reduce according to hazardous management total annual GHG and HCFC. requirement. - Safety issues during the operation of new - The subproject operation shall include equipment appropriate measures on labor safety. Improve the boiler efficiency by some solutions In construction phase: In construction phase: such as burner improvement, flue gas - Risks of labor safety. - Safety measures as described in the ECOPs. recirculation, air divide in stages, so on - Solid waste from waste materials - Waste management measures and procedure shall be in place In operation phase In operation phase: - Reduce pollutants discharge - Boiler operation from fuel combustion, itself - Save energy for heating process and reduce generate air pollutants such as NOx, SOx, and heat loss. particulate, CO2, and solid waste i.e. ash and slag. - Promote the initiatives and technical and technological improvements during - Generated air emission will be collected and production. treated via air treatment system. Frequent maintenance of air treatment system and monitoring to ensure emission will complied with application regulation. - Ash and slag will be transferred to permitted ash- pond. - However, the improved boiler after the project will lead to lesser fuel consumption and the emission load of pollutant. Replace insulation materials In construction phase: In construction phase: - Risks of labour safety. - Mitigation measures as described in the ECOPs 31 Energy efficiency improvement project Environmental and social impacts Mitigation measures - Disposal of wastes during the installation of - Waste management measures and procedure new equipment, waste management for the shall be in place inefficient equipment being removed; In operation phase In operation phase: - Save energy for heating process and reduce - Insulation material to help heating insulation to heat loss. lessen heating loss. Replacement of the insulation material will retain efficiency, save energy resulting emission reduction in. Improve the insulation for steam pipeline In construction phase: In construction phase: - Risks of labour safety. - Mitigation measures as described in the ECOPs - Solid waste from waste materials. - Waste management measures and procedure shall be in place In operation phase In operation phase: - Lessen steam loss and improve efficiency. - The same to above, improve the insulation for - Save energy for heating process. steam pipeline will lessen heating loss to retain efficiency and save energy resulting emission reduction in. Improve the quality of water feeding for In construction phase: In construction phase: - Risks of labour safety. - Mitigation measures as described in the ECOPs boiler In operation phase In operation phase - Reduce generated non-contaminated - Residual non-contaminated solid waste/sludge sludge/solid waste from supply water will be periodical disposed appropriately treatment. - Chemical safety procedure shall be in place to - Reduce chemical usage for water treatment. prevent from chemical accident. - Periodical Waste water discharge from the - Waste water will be collected and treated by the 32 Energy efficiency improvement project Environmental and social impacts Mitigation measures boiler treatment system of the company - Chemical hazard. Install the steam trap of boiler In construction phase: In construction phase: - Risks of labour safety. - Mitigation measures as described in the ECOPs In operation phase In operation phase: - Reduce waste water which is periodically - Waste water will be periodically collected and discharged from condensers and pipes. treated in the wastewater system of IE. - Save fuel and energy during production - The steam trap is a device to respond to process. fluctuations in condensate load, condensate that should be discharged will instead pool inside the equipment/pipe to retain heating efficiency. The steam trap are to reduce condensate load, steam leakage cause steam will be wasted. Generally, these traps will help to save energy via reduced the source of consumed material and therefore reduce the air emission. - Generated air emission will be collected and treated via air treatment system. Frequent maintenance of air treatment system and monitoring to ensure emission will complied with application regulation. Use high efficiency compressor/install inverter In construction phase: In construction phase: - Risks of labour safety - Mitigation measures as described in the ECOPs - Solid waste discharge from waste - Safety procedure and measures shall be in placed equipment, lubricant, waste from oil filter, etc. 33 Energy efficiency improvement project Environmental and social impacts Mitigation measures In operation phase In operation phase: - Reduce electrical consumption. - The high efficiency compressor/ inverter are - Ensure the stability of control system, installed for air-pressured generation or transporting system electricity equipment to respond to fluctuations in operation condition/load to reduce or save energy resulting emission reduction in. Replace the air leakage pipeline to reduce In construction phase: In construction phase: energy loss. - Risks of labour safety - Mitigation measures as described in the ECOPs - Solid waste from waste materials. In operation phase In operation phase: - Save fuel and energy during production - The tight pipeline is replaced to reduce air loss process. and save energy resulting emission reduction in. - Reduce energy loss There is no negative impacts in operation phase Use energy efficiency fan system. In construction phase: In construction phase: - Risks of labour safety - Mitigation measures as described in the ECOPs - Discharge solid waste including waste - Waste management measures and procedures material, noise emission during dismount old shall be in place and install new equipment. - Safety procedure shall be in place. In operation phase: In operation phase - The new fans will consume less of energy (for - Save energy. example electricity), therefore, it will save energy and emission reduction of the whole system. There is no negative impacts in operation phase. 34 Energy efficiency improvement project Environmental and social impacts Mitigation measures Install inverter equipment for engine system. - In construction phase: - In construction phase: - Risks of labour safety - Mitigation measures as described in the ECOPs - Discharge solid waste, noise emission during dismount old equipment and install new equipment. In operation phase In operation phase - The inverters are installed for electricity - Save energy. equipment to respond to fluctuations in operation condition/load to reduce or save energy resulting in emission reduction of the whole system Apply automatic control system to improve In construction phase: In construction phase: production control ability, improve equipment - Risks of labour safety - Mitigation measures as described in the ECOPs operation and energy usage. - Discharge solid waste, noise emission during dismount old and install new equipment In operation phase In operation phase - The automatic control system will adjust - Save energy and fuel. automatically to consist to realistic operation - Reduce pollutants in air emission and solid condition/load to reduce energy consumption waste and save energy for emission reduction. - Air emission will be collected via treatment devices. - Solid waste will be collected, and transferred to permitted ash pond or recycle in the clinker production line 35 Energy efficiency improvement project Environmental and social impacts Mitigation measures Projects related to process technology Use amorphous magnetic core transformer to In construction phase: In construction phase: reduce electrical loss - Risks of labour safety - Waste management measures as described in the - Solid waste and hazardous waste (possibly ECOPs. including transformer oil. - Hazardous waste should be identified, labeled and stored in a safe place, then transferred to licensed organization for treatment according to hazardous management requirement. - The oil disposed from transformers shall be tested on PCB content. In case the oil is confirmed as PCB contaminated, then specific PCB management procedures shall be applied. (see Annex 5). In operation phase In operation phase: - Risk of fire explosion and impacts from high - The amorphous magnetic core transformer will electro-magnetic lessens electrical loss so that save energy and emission reduction. There would still occur risks of flame or blast but less than conventional transformers. - Comply with technical specification and safety measures for transformers. Apply energy efficiency technology replace for In construction phase: In construction phase: conventional technology (ex: replace roller mill - Risks of labor safety - Mitigated measures as described in the ECOPs by vertical grinding system in cement industry, - Discharge solid waste including replaced supercritical or ultra-supercritical in power equipment, noise emission during dismount generation) old and install new equipment. 36 Energy efficiency improvement project Environmental and social impacts Mitigation measures In operation phase In operation phase - Reduce generated noise, solid waste, and air - Boiler operation from fuel combustion, itself emission. generate gaseous pollutants such as NOx, SOx, - Save fuel and energy during production Particulate, CO2, and solid waste of ash and process. slag. However, the replacement oi energy efficiency technology led to lessen of fuel consumption and the emission load of pollutant for conforming environmental protection regulations. - Generated air pollutants will be collected and treated via air treatment system. Frequent maintenance of air treatment system and monitoring to ensure emission will complied with application regulation. - Ash and slag will be transferred to permitted ash- pond. Use advance technology burner to improve In construction phase: In construction phase: burning efficiency and save energy (ex: oxygen - Risks of labour safety - Mitigation measures as described in the ECOPs. – fuel burner technology replace for electricity - Discharge solid waste, noise emission during in steel industry, extract oxygen from air to dismount old and install new equipment. supply directly for coal burner in thermal power industry, etc.) In operation phase In operation phase - Save energy and fuel. - Positive impacts, no mitigation measures are - Reduce pollutants in exhausted gas. required - Labor safety - Boiler operation from fuel combustion, itself generate gaseous pollutants such as NOx, SOx, 37 Energy efficiency improvement project Environmental and social impacts Mitigation measures Particulate, CO2, and solid waste i.e. ash and slag. However, the replacement oi energy efficiency technology led to lessen of fuel consumption and the emission load of pollutant for conforming environmental protection regulations. - Generated air pollutants will be collected and treated via air treatment system. Frequent maintenance of air treatment system and monitoring to ensure emission will complied with application regulation. - Ash and slag will be transferred to permitted ash- pond. - Comply with labor safety procedures in O&M. Use new sources of energy that less pollution Pre-construction: Pre-construction: (ex: replace LNG, LPG for coal, use mixed coal, - Occupy land for LNG port, storage, gas - The selected is far from significant industrial mixture of bitum with antraxit coal for thermal pipeline system. underground facilities, residential area and power industry, etc) - Land expanded acquisition for storage, fuel sensitive ecosystem. handling and other facilities; - Make compensation and resettlement action plans conformed to National relevant regulations and WB’s OP/BP 4.10, 4.12 with adequate budget for conducting necessary activities. - Site selection shall be carried out including sufficiency of land area for the necessary works of the project. In construction phase: In construction period - Risks of labor safety and fuel handling - Mitigation measures as described in the ECOPs process; 38 Energy efficiency improvement project Environmental and social impacts Mitigation measures - Cause air, water, soil quality change, noise and site-specific measures. emission during dismount old, construction, and install new equipment. In operation phase In operation - Reduce emission of pollutants and - Residual air emission will be collected and greenhouse gases. treated via air treatment system. Frequent - Increase burning efficiency, save energy for maintenance of air treatment system and production process. monitoring to ensure emission will complied - Reduce discharge solid waste (ash) with applicable regulation. - Water pollution ability due to liquefied and - Waste management procedure should be in place gasified process, the transportation of LNG, - Emergency response for chemical leakage imported coal by ship activity. should be in place - Increase fire, gas leakage risk. - Procedure of loading and un-loading material should be in place. - Generated wastewater shall not be discharge directly in the water course, it shall be collected and treated appropriately. - Emergency response for explosion should be in place Projects related to reuse waste heat and waste reuse Utilize the waste steam for heating water for In construction phase: In construction phase: boiler - Risks of labour safety; - Mitigation measures as described in the ECOPs - Generation of solid waste In operation phase In operation phase - Save fuel and energy during production - Positive impacts, no mitigation measures are 39 Energy efficiency improvement project Environmental and social impacts Mitigation measures process. required - Apply co-generator to utilize waste In construction phase: During construction period heat, bio-fuel. - Risks of labor safety; - Mitigation measures as described in the ECOPs - Discharge solid waste from used equipment. In operation phase In operation period - Reduce generated solid waste (ash) - Ash should be collected and transferred - Reduce air pollutants emission. permitted disposal site. - Save fuel and energy during production - Install the air pollution treatment system. process. - Monitor the air quality to ensure emission does not exceed national permitted threshold - Regularly maintain the air pollution treatment Reuse waste heat (ex: waste heat from clinker In construction phase: In construction kiln, waste heat from refine steel furnace, from - Risks of labour safety; - Mitigation measures as described in the ECOPs boiler, from blast furnace, etc) for other - Discharge solid waste, noise emission during activities (power generation, pre-heat materials, dismount old and install new equipment. etc.) in industries. In operation phase In operation phase - Save energy and fuel. - Waste management procedure should be in - Reduce pollutants in exhausted gas. placed - Labor safety issues - Residual air emission shall be collected and monitored to ensure the emission levels is below the permitted threshold. Monitor and mitigation measures the air quality, noise heating should be carried out. - Safety working procedure should be in place. 40 Energy efficiency improvement project Environmental and social impacts Mitigation measures Projects related to use of Renewable Energy Replace the input chemical, materials in the Pre-construction Pre-construction regards of energy saving (ex: use enzyme in dye - Land expanded acquisition for storage, fuel - Make compensation and resettlement action industry; use by-product from agriculture and handling and other facilities; plans conformed to National relevant regulations the bio-products as the decomposition agent in and WB’s OP/BP 4.10, 4.12 with adequate pulp and paper industry, solar, wind etc). budget for conducting necessary activities. In construction phase: In construction phase: - Risks of labour safety; - Mitigation measures as described in the ECOPs - Discharge solid waste, noise emission, chemicals during dismount old, construction and install new equipment. In operation phase In operation - Reduce pollutants in air emission - Install waste treatment system for the new type - Discharge of chemicals which are less of air pollutant. Frequent maintenance of air polluted and less toxic than the original treatment system and monitoring to ensure technology – emission will complied with application - Increases fire and explosive and chemical regulation. leakage risk. - Safety measures, Emergency response for - Reduce quantity of input materials. explosion, chemical leakage situation shall be in place. - Save energy for heating process and reduce heat loss. - Solid waste shall be collected and disposed appropriately - Promote the initiatives and technical and technological improvements during production. 41 Energy efficiency improvement project Environmental and social impacts Mitigation measures Adjust the product quality with the energy In operation phase In operation phase saving purpose (ex: adjust the white level of - Reduce quantity of input materials. - Solid waste and discharge chemicals shall be paper to reduce energy consumption, etc) - Reduce amount of solid waste and collected and disposed appropriately discharged chemicals. Discharge solid waste/chemical that less polluted and less toxic. Replace fossil fuel by renewable energy sources Pre-construction Pre-construction (ex: solar energy, bio-fuel, waste oil for clinker - Land expanded acquisition for storage, fuel - Make compensation and resettlement action kiln, coal-additives energy for thermal power handling and other facilities; plans conformed to National relevant regulations industry, etc.) and WB’s OP/BP 4.10, 4.12 with adequate budget for conducting necessary activities. In construction phase: In construction phase: - Risks of labour safety; - Mitigation measures as described in the ECOPs - Discharge solid waste, noise emission, chemicals during dismount old, construction and install new equipment. In operation In operation phase - Install waste treatment (system for the new type - Reduce pollutants emission (air and waste of pollution. Frequent maintenance of treatment water) system and monitoring to ensure - Discharge solid waste/chemicals that are emission/discharge will comply with application less polluted and toxic regulation. - Reduce quantity of input materials. - Solid waste and chemicals are collected and disposed appropriately. - Increases fire and explosive and chemical 42 Energy efficiency improvement project Environmental and social impacts Mitigation measures leakage risk. - Safety measures, Emergency response for - Save energy for heating process and reduce explosion, chemical leakage situation shall be in heat loss. place - Promote the initiatives and technical and technological improvements during production. 43 V. PROCEDURES FOR SCREENING, REVIEW, CLEARANCE AND IMPLEMENTATION OF SUBPROJECT SAFEGUARD INSTRUMENTS Safeguard Screening The purpose of screening is to determine the sub-project’s eligibility for World Bank funding and to identify, whether the subproject would have the potential to cause significant adverse impacts on the environment and society, consequently the appropriate safeguard instruments and mitigation measures to manage those impacts. Environmental screening will be carried out at the stage of identification and selection of subprojects. V.1.1. Eligibility Screening The purpose of eligibility screening is to avoid adverse social and environmental impacts that cannot be adequately mitigated by project or that are prohibited by a World Bank policy, or by international conventions. Ineligibility criteria, (i) prohibition under a World Bank policy, e.g., significant degradation or conversion of critical natural habitats, critical natural forests, etc.; (ii) contravention of the country obligations under relevant international environmental treaties, e.g., Montreal Protocol or Stockholm Convention, etc; and (iii) environment and social impacts so complex and adverse that are beyond the capacity of the PMU to manage. A subproject that falls under one of the ineligibility criteria will not be eligible for project financing. The PFIs will also carry out environmental and social due diligence on operation of existing IEs to ensure that the operation of PFIs complies with the national regulations on environmental protection and environmental assessment. A detailed protocol or TOR for conducting environment and social due diligences of existing facilities that will be supported by the project will be developed at the beginning of project implementation prior to the screening of the first sub-projects. The protocol or TOR will be submitted and approved by the Bank. The due diligence shall take into account the compliance of the existing facilities on performance of environmental and social management regarding but not restricted to following aspects: emission, wastewater discharge, waste management and disposal, occupational health and safety, periodical environmental quality monitoring, land acquisition, compensation, physical relocation, livelihood restoration and ethnic minority people in accordance to the national requirements. In case there is an outstanding issue, the facilities shall proposed a remedial plan with appropriate measures. And these plans shall be included in the loan contracts between PFIs and IEs and mitigation measures of these plan shall be monitored strictly during subproject implementation. Application and initial screening of project eligibility including environmental and social safeguard of IEs will be submitted to PFIs. The PFIs environmental staffs will check and appraise the completed filling up the Annex 1 for the initial screening. Eligible projects are: - If the subprojects only bring about positive impacts and/or causing minimal or no adverse impact, it is appraised as environmental eligible and beyond screening; no environmental 44 assessment action is needed. - The VEEIEs Project only triggers the WB safeguard policy on Environmental Assessment (OP/BP 4.01) and OP/BP 4.11 on Physical Cultural Resources; Involuntary Resettlement (OP/BP 4.12), and Indigenous People (OP4/BP 4.10). Any subproject triggering other safeguard policies has to be prior consult with the World Bank. If the subproject is determined as eligible, the impact screening will be carried out to determine the category of the subproject and the safeguard instrument that the need to be prepared in accordance with the national regulation and the WB’s safeguard policies. The impact screening process is described in detailed in section V.1.2. The impacts screening regarding OP/BP 4.01 Environmental Assessment and OP/BP 4.11 will be covered under this ESMF. For the subproject triggering safeguard policies on Involuntary Resettlement (OP/BP 4.12), and Indigenous People (OP/BP 4.10); the requirements on EMPF will be followed. In case, the subprojects are a part of the IEs existing facilities and necessary documents of Environmental and social safeguards are already available the screening will be carried out to determine its eligibility and the gaps of the available documents and if additional actions to ensure conforming the national regulations and the WB’s safeguard policies. V.1.2. Impact screening to determine sub-project category and safeguard instrument Subproject classification criteria World Bank’s categorization According to the OP/BP 4.01, the WB classifies the projects based on the extent and potential magnitude of the impacts. (a) Category A project which can cause significant adverse environmental impacts that are diverse, irreversible and unprecedented is categorized as A and for this project, a full Environmental Assessment (EA) needs to be conducted. (b) Category B projects are those with less significant adverse impacts which are site-specific, few if any of them are irreversible; and in most cases mitigation measures can be designed more readily than for Category A projects. Category B project will require preparation of Environmental Management Plan (EMP) or an EIA with scope narrower than that of category A. (c) Category C: The project that causes minimal or no adverse impact is categorized as C and beyond screening, no environmental assessment is required. GoV legal requirements The GoV legal documents, i.e. Decree No 18/2015/ND-CP, use a list of Project type to classify projects as presented below: a) All the project listed in Appendix II of Decree 18/2015/ND-CP requires the preparation of an EIA b) The subprojects/activities subject to prepare and register for an Environmental Protection 45 Plan include: i) New investment projects, project for extension of scope or capacity of business facilities other than entities prescribed in Appendix II Decree 18/2015/ND-CP; ii) Plans for business investment, projects for extension of scope or capacity of business facilities other than entities prescribed above and not included in Appendix II of this Decree; iii) Entities that are exempt from registration of EPP prescribed in Appendix IV of this Decree. c) Appendix III lists the projects of which EIAs are subjected to MONRE appraisal and approval as they could cause potential high adverse impacts. Below are most relevant to the proposed projects: (i) Projects that use land of national parks, wildlife sanctuary; projects that use at least 1 hectares of land of national historical-cultural monument; at least 5 hectares of land of world heritage sites or national scenic beauties; or at least 10 hectares of land of biosphere reserves; (ii) Construction projects for at least 600 MW power plants; construction projects for hydroelectric power plants, irrigation works with a capacity of at least 100.000.000 m³ of water; (iii) Construction projects for sea encroachment at least 20 hectares; project that use at least 20 hectares of protection forests or specialized forests, at least 100 hectares of natural forests; projects using at least 10 hectares of paddy land. (iv) Construction projects for recycling and processing of ordinary solid waste with capacity of at least 250 metric tons per day and night; projects for recycling and processing of hazardous waste; construction projects for concentrated sewage treatment systems with capacity of at least 5,000 m³ per day and night regarding industrial wastewater, or at least 50,000 m³ per day and night regarding domestic wastewater. (v) Projects for extension, upgrade, or capacity expansion of business facilities up to capacity equivalent to projects of this Appendix. (vi) Projects implemented in areas covering more than one province. d) In addition, according to Article 15 of the Decree 18/2015/ND-CP on the re-preparation of the EIA reports. 1. If a project whose EIA report is approved has one of following changes during their implementation, its EIA report shall be re-compiled: a) There are changes prescribed in Point a and b Clause 1 of Article 20 of the Law on Environment protection; b) Supplement the portfolios whose size and capacity are equivalent to entities prescribed in Appendix II of this Decree; c) There are changes in size, capacity, technology or other changes that make the 46 environmental protection works unable to solve new environmental problems; d) At the request of the project owner. 2. The project owner may only apply changes prescribed in Point a, b, c and Clause 1 of this Article after the competent agency approves the re-compilation of EIA report. 3. The re-compilation of EIA report, re-assessment and re-approval for EIA report shall comply with regulations in Article 12, Article 13 and Article 14 of this Decree. The decree has a new stipulation remarkably on Responsibility of project owners/industrial enterprise (IE) pertaining to the approved EIA reports that the IEs will set up a plan for environment management (EMP) of project on the basis of program for management and observation of environment suggested in the EIA report and posted at the premises of the People’s Committee of the commune where the consultation is taken place when implementing EIA according to guidance of the Ministry of Natural Resources and Environment (MONRE). Impact Screening Procedure The environmental screening procedure for subprojects under VEEIEs is described in 47 Figure 3 below. IE’s Application and PFI and its Environmental NO STOP primary screening of staff/consultant appraise These environmental checklist application and primary subprojects are safeguard policies screening. NOT eligible (Annex 1) submitted to Is this sub-project eligible? for financing PFI YES The subprojects trigger OP/BP 4.10 and/or OP/BP 4.12 C-type PFIs conducts Environmental Impact screening (Annex 2) of sub-projects. NO further EIA/EMP/EPP IEs, to prepare Disclosure and environmental - type the Safeguard Public documents or reports i.e. consultations processes required. EMP/EIA/EPP Keep Environmental and RP (if Impact screening any) records and visually inspect for issues occasionally. WB for Checking and issue NOL Figure 3. Environmental screening procedure During the VEEI implementation, the PFIs, in line with the World Bank safeguards policies, conducts environmental and social screening of subprojects for their categorization (A, B or C) and determines the type of safeguards instruments a subproject needs to prepare. Please see Annex 2 for guidance on screening on environmental and social impact screening. The PFIs is advised to consult with the World Bank on complex subprojects to reach agreement on the category, the type of safeguards instrument, and the key impacts before embarking upon major studies. The PFIs must send to the WB the list of selected proposed subprojects and screening results at two screening levels as specified in Annex 1 and Annex 2. If the WB does not satisfy with capacity of PFIs in screening process, the PFIs shall provide additional strengthening measures to enhance capacity. A Project Management Board (PMB) 48 set up under MOIT will provide support to enhance capacity for PFIs staff on safeguard screening and management via TA activities. The WB will associate with PMB to provide technical support to enhance capacity of PFIs as needed. Development of Subproject Safeguard Documents The subproject under VEEIs shall comply national regulations on environmental assessment and protection and the World Bank’s safeguard policies. The IEs, when proposing subproject, will have to prepare requiring environmental document (an EIA/EPP) under prevailing Vietnamese Environment Protection regulations and the WB’s safeguard policies,. IEs will prepare an EIA/EPP for each subproject at preparation phase, i.e. in parallel with the preparation of Economic-Technical Report (ETR) or Feasibility Study (FS) and conduct public consultations and information disclosure as guided in section 5.3. The content and format of EIA and EPP will follow the guide in Circular No. 27/2015/TT-BTNMT dated 29 May 2015. The content and format of RP and EMDP will follow the requirement set out in the Resettlement Policy Framework (RPF) and Ethnic Minority Development Framework (EMDF), except for the subproject’s land area is a part of land area of the existing facility that has occupied by the IEs. The scope and level of detail of the RAP vary with the magnitude and complexity of resettlement. In addition, in accordance to the World Bank’s safeguard policies, based on the impact screening, (i) for a category C subproject, the IE does not have to prepare any environmental safeguard document; (ii) for a category B subproject, the IEs should prepare one Environmental Management Plan (EMP); and (iii) for a category A subproject, the IEs shall hire consulting firm to prepare an full EIA meeting the WB’s requirements. Specifically, for category A subproject, before preparing EIA report, the IEs shall prepare TOR for the EIA report and send to World Bank for prior reviewing and clearance. For a category B sub-project of which an EIA or EPP has already been approved by GoV authorities, the PFI’s environment staff/consultant may consider to make a due diligence to assess the adequacy of these reports. If any insufficiency is identified, the subproject owner will have to prepare one EMP with supplementary measures, submit to PFIs for eligible screening and impact evaluation prior transferred to review and approval by World Bank. The ESMP consists of a set of mitigation, monitoring and institutional measures to be taken during construction and operation in order to minimize, reduce and/or eliminate any potential adverse environmental impacts to acceptable levels. It includes the entire subproject scope and impacts. The guidance for EMP preparation is provided in Annex 3. The EMP consists of the following elements are as follows: - Introduction - Subproject Description - Applicable Environmental legislations - Environmental and Social Impacts - Mitigation and Management Measures 49 - Institutional Arrangement for safeguard implementation - Supervision, Monitoring and Reporting - Budget for EMP implementation - Public Consultation and Disclosure Environmental Management Procedures for subproject under components can be summarized as below Table 6. Summary of environmental management procedures for subprojects under VEEIEs Steps Environmental Action Required Implemented Monitored/check by By 1. Sub-project 1.1. Prepare basic information and Industrial PFIs identification submit to PFI for primary screening Enterprises (IEs) 1.2. Environmental eligible screening PFIs WB will review the screening result 1.3. Screen to categorize sub-project as PFIs WB will review the A, B or C subprojects according to the screening result World Bank’s safeguard policies For sub-projects that are classified as C-type: no further action required. For subprojects of other categories, carry out subsequent steps. 2. Sub-project 2.1. Provide guidance to selected IEs or IEs PFIs check and preparation Environmental consultancy in environmental appraise the Sub- preparing necessary environmental consultant project dossier documents, collecting and recording eligibly. required licenses/permits that comply PMB will also with approved ESMF provide all technical assistance activities under VEEIEs. WB will do random checks 2.2. For category B sub-projects that PFIs and IE Reviewed PFIs and present an approved EIA/EPP which is WB still effective, conduct an environmental due diligence and request the IE to prepare an supplementary EMP if necessary 2.3. For category A subprojects, IEs Monitored by PFIs prepare the report on institutional and cleared by WB. capacity to carry out environmental safeguard and TOR for EIA 50 Steps Environmental Action Required Implemented Monitored/check by By preparation 2.4. Prepare draft EIA/EMP/EPP IE or IE’s Monitored by PFIs environmental Carry out public consultations with consultancy potential affected people and local authorities about the content of EIA/EMP/EPP prepare meeting minutes and list of participants Include solutions to address community concerns into final EIA/EMP/EPP. Consultation records are filed for submission when required. Submit draft EIA/EMP/EPP to PFIs and WB (if required) for review 2.5. Review the final EIA/EMP/EPP PFIs WB will do prior to submit for approval selectively check environmental document of category B subprojects (30%) The WB will conduct prior review of EIA for all category A subprojects. 2.6. EIA/EMP/EPP (if any) EIA/EMP WB will clear the approval/clearance cleared by PFIs EIA report of all and/or WB category A subproject. WB will selectively provide clearance for EMPs of certain category B subprojects Local authorities EIA/EPP approved by Monitored by PFI appropriate for EIA/EPP/RP local authorities approval 3. Sub-project 3.1. Include mitigation measures and/or IEs Monitored by PFIs, bidding requirements in approved PMB EIA/EMP/EPP into bidding document - Include mitigation measures and Random check by 51 Steps Environmental Action Required Implemented Monitored/check by By requirements into rehabilitation WB document and contract (if any) - Include mitigation measures/requirements into equipment supplier contract (if any) - Include mitigation measures/requirements into construction supervision bidding document and contract (if any) 4. Implement mitigation measures Contractor/IEs Monitored by PFIs, Implementation local authorities, phase PMB Internal monitored by environmental consultancy and construction supervision consultant (CSC) IEs Random check by WB Carry out internal environmental IEs and CSC Monitored by PFIs monitoring and supervision on daily basis Carry out external periodic PMB, PFIs, Periodically check environmental monitoring independent by WB consultant of IEs on periodic basis Collect and record environmental IEs Monitored by PFIs, licenses and permits necessary PMB Random check by WB Report on sub-project environmental Environmental Reviewed by PFIs, compliance to PFIs for review. consultancy of Random check by IEs WB Report on whole project environmental PFIs Reviewed by WB compliance to WB and PMB for review and PMB 52 Review, Approval, and Clearance of Subproject Safeguards Instruments V.3.1. Review and approval of safeguards instruments Government’s review and approval: If a subproject requires review and approval according to the government EA regulation, IEs will prepare and submit the EA report as required for review and secure the approval by relevant government authorities before subproject approval. The guidelines for appraisal and approval of an EIA or EPP are included in the respective government regulation (namely, Circular 27/2015/TT-BTNMT). Evidence of the approval will be provided to the World Bank for information. PFI review and clearance: The PFIs will be responsible for prior review the environmental documents of proposed subprojects to ensure it complies with national regulations as well as World Bank safeguard policies. World Bank review and clearance: The Bank will review screening results and selectively review environmental documents of about 30% of total subprojects. The Bank will review and clear the environmental reports of all the subprojects defined as category A in line with the WB’s safeguard policies. In addition, for the category A subproject, before preparing EIA, the subproject owner shall prepare TOR for the EIA report and send to the WB for prior review and clearance. If the EA report is satisfactory, the World Bank will issue its clearance memo. If the EA report needs to be improved, the World Bank will request IE to revise or issue a conditional clearance with the understanding that IE will revise the EA to satisfy the World Bank for the final clearance. The PFIs review and clearance: The PFIs shall review and provide clearance for the environmental documents of other category B subprojects, which is not selected to be reviewed by the World Bank. PFIs and IEs are responsible to record and keep all safeguard documentation (Environmental screening forms, EIA/EPP/EMP consultation records, confirmation on public disclosure, environmental monitoring records, and waste collection contracts etc.) related to sub-projects. Safeguard implementation is a part of progress implementation report that PFIs will submit to the World Bank prior to supervision mission. V.3.2. Public consultation and disclosure of safeguard instruments During preparation of EIA/EMP/EPP, IEs will conduct public consultations to take the view of relevant stakeholders into account as required by national regulations and the WB’s safeguard policies. Regarding the national regulation, the requirements on public consultation are prescribed at Decree 18/2015/ND-CP and Circular 27/2015/TT-BTNMT. Concretely, during EIA preparation, IEs will consult commune-level People Committee and representatives of residential community and organization which is directly affected by the subproject. During EMP/EPP preparation, IEs will consult with the potential affected people. The Bank’s safeguard policies require that for all category A and B project, during the EA process, the IEs to consult with project affected people (PAPs) and local nongovernmental 53 organizations (NGOs). For Category A subprojects, the IEs consults these groups at least twice: (a) shortly after environmental screening and before the terms of reference for the EA are finalized; and (b) once a draft EA report is prepared. In addition, the IEs consults with such groups throughout project implementation as necessary to address EA-related issues that affect them. During the preparation of EIA/EPP/EMP document, public consultation must be carried out in a form convenient to the local people (e.g. survey, meeting, leaflet, signboard etc.) and information on the main findings of environmental impacts and proposed mitigation measures must be provided in the local language understandable for the majority of the affected people. The public consultation activities - including date, location, and publication form, comment from consulted people and response from subproject owner (IEs) - shall be documented and taken into account into finalization of EIA/EMP/EPP report. V.3.3. Disclosure of EA documents During subproject preparation, all EIA/EMP/EPP for subprojects must be disclosed in a timely manner, in an accessible place, in a form and language understandable to stakeholders. The PFIs should confirm with the Bank that hard copies of draft EMP/EIA (in Vietnamese) are disclosed locally at the subproject area, at the PFI office and websites, and Commune People Committee’s office, and accessible to the public and the time for such disclosure. Information disclosure of all subprojects will be done before the appraisal of the Economic-Technical Report or Feasibility Study of the subprojects. For category A subproject, the IE must send the EIA report in English language to the WB to disclose in the Infoshop. An Executive Summary of the EIA should also be prepared and disclosed in both English and local language. Implementation, Supervision, Monitoring, and Reporting V.4.1. Implementation During the subproject implementation, the IEs will have the overall responsibility to ensure the effective implementation of safeguard requirements as set out in the approved/cleared environmental documents (EIA/EMP/EPP). Concretely, IEs shall incorporate EMPs/ECOPs into included in bidding and contractual documents. Pursuant to the contract, the construction Contractor is responsible for carry out mitigation measures as described in EMP/ during the subproject implementation. V.4.2. Supervision and Monitoring During subproject implementation, the mitigation measures outlined in the EIA/EMP/EPP should be monitored to ensure that they are implemented in a timely and adequately manner. In some cases, it is necessary to take additional measures to ensure that all arising impacts are adequately addressed. Internal monitoring In additional, IEs will assign a staff or hire construction supervision consultant (CSC) to assist IEs in supervising the contractor’s implementation of mitigation measures set out in approved/cleared EIA/EMP/EPP. The CSC will assist IE to supervise the contractors safeguard 54 performance on daily basis. IEs will contract with an independent environmental consultant to carry out environmental quality monitoring on the soil, air and water quality, as set out in approved EIA/EMP/EPP. The results will be reported in document to IE. IE shall submit the periodic monitoring reports to PFIs, functional authorities and stakeholders (if required). External monitoring - Local authorities (DONRE/MONRE) are responsible inspection for compliance with approved EIA/PP by IEs. - PFIs will periodically conduct monitoring safeguard compliance of IEs during the subproject implementation and 1st year of operation. - The PMB will also hire consultant to carry out independent monitoring on safeguard implementation of IEs and PFIs. Generally, it will be at least twice per year category A subproject and at least one per year for category B subproject. The monitoring on IEs performance shall be conducted during subproject implementation and 1st year of subproject operation phase. - Local communities are encouraged to participate supervision. If there are complaints from local subproject-affected groups, IE should send staffs in a timely fashion to assess the validity of complaints and take any necessary actions to remedy the situation. Reporting on the implementation of the EMP should be sent to the PFIs as part of the progress reports. - WB will provide technical guidance if necessary to PFIs to enable them fulfill their supervision responsibilities and related reporting and documentation requirements. V.4.3. Reporting The enterprises (IE) will prepare periodic reports on implementation of mitigation measures and internal monitoring as scheduled in EIA/EMP/EPP reports. These reports shall be sent to PFIs every 06 month during the subproject implementation and first year of operation. The PFIs shall submit the biannually environmental monitoring reports on its financed subprojects to PMB about 04 weeks before the WB’s implementation support mission. 55 The PMB will incorporates its monitoring results (every 06 month) and the results from PFIs and submit one integrated monitoring reports to the WB before each implementation support mission. PMB under GDE WB of MOIT, MOF, PFIs VSB Environmental Consultant CSC Contractor Reporting line Monitoring line Figure 4. Reporting system Safeguard requirements for activities under project component 2 The Technical Assistant (TA) under component 2 mostly involves capacity building activities. These activities usually do not cause potential adverse environmental and social impacts and risk. In fact, it would result in enhancement of safeguard performance of subproject under Component 1. For that, these TA are categorized as C and none safeguard instrument will need to be prepared for these activities. Nevertheless, under Component 2, it is indicated that technical pre-feasibility studies will be carried out for pipeline support for the food processing industry under Canadian Externally Finance outputs. For these studies, the TOR for these pre-FS will include requirements on screening, analysis, and on environmental and social aspects so as to ensure that the proposed activities are in accordance to the Bank safeguard policies and the national regulations. In addition, during the implementation, all the TA activities will be screened for their potential environmental and social implications, risk and impacts, environmental categorization, and the selection of relevant safeguard instruments. The environmental consultant of PMB will refer to the “Interim Guidelines on the Application of Safeguard Policies to Technical Assistance (TA) 56 Activities in Bank-Financed Projects and Trust Funds Administered by the Bank4â€? to screen the TA for their implications on environmental and social impacts and determine the appropriate safeguard instruments. VI. IMPLEMENTATION ARRANGEMENT Responsibility for ESMF Implementation The executing agency will be the General Directorate of Energy (GDE) of the Ministry of Industry and Trade (MoIT) with a central Project Management Board (PMB), which is the current Project Management Board (PMB) for Clean production and Energy Efficiency (CPEE) under General Directorate of Energy, will coordinate and supervise VEEIEs implementation its. The PMB will be responsible for managing and supervising overall VEEIEs, monitoring VEEIEs progress, including safeguard compliance and reporting regularly to MOIT and WB. The PMB will also manage all technical assistance activities under VEEIEs and will make requests to MOF to make the TA-related payments from the special accounts established under VEEIEs. Selected PFIs will be responsible to implement the credit line component and have full responsibility for the EE lending process and approvals, following the agreed OM and bear all associated credit risks. Each PFI will form a Project Implementation Unit (PIU) with dedicated teams, supported by technical, safeguard and procurement experts. The PIU will implement the sub-lending activities and act as the PFI’s focal point to interact with the Bank, MOIT, MOF and other stakeholders. The PIU is also responsible for primary screening for eligibility of the project. However, among potential PFIs, with insufficient institutional capacity, they are required to recruit and train the environment and social safeguard specialists making sure that safeguard requirements under the project are met by the IEs and ESCOs. PFIs are responsible for appraisal and evaluation of subprojects and bear all associated risks regarding the loans to IEs. The PFIs will supervise/monitor all subloans to ensure they are implemented according to Vietnamese and Bank requirements and guidelines, and provide periodic reports including fiduciary and safeguards reports to MOIT, MOF and the Bank. Independent auditors will be selected to conduct annual project audit on PFIs and IEs performance. A detailed project OM, covering technical, fiduciary, safeguards and management requirements and procedures will be prepared. The ESMF will be incorporated in the OM. The OM will define the detailed eligibility criteria for sub-projects. Industrial Enterprises will approach participating banks with subprojects for which all requisite 4 This note builds on “2007 Guidelines for Environmental Screening and Classificationâ€? and “2010 Interim Guidance Note on Land Use Planningâ€?. To address potential environmental and social implications of development policy lending, please refer to OP/BP 8.60 on “Development Policy Lendingâ€?. The information provided in this document should also be used by Bank Staff to help guide them in preparing and conducting Reimbursable Advisory Services. 57 approvals have been secured. The participating industrial enterprises (IEs) will be accountable for implementing safeguard requirements of specified activities under VEEIEs. The responsibility of PMB, PFIs, IEs as well as other stakeholders for ESMF implementation is described in below figure and the Table 7. Ministry of Industry and The State Bank of Trade (MOIT) Vietnam (SBV) Project Management World Bank Board (PMB) NHTM NHTM NHTM Ministry of (PFIs) (PFIs) (PFIs) Finance (MOF) DN DN DN DN DN DN DN DN DN (IE) (IE) (IE) (IE) (IE) (IE) (IE) (IE) (IE) Figure 5. Implementation organization structure of VEEIEs Table 7. Stakeholders’ responsibilities for ESMF implementation Community/agencies Responsibilities Ministry of Industry and - Overall supervision of project implementation, coordination Trade (MOIT) with line ministries; - Enable the PMB to carry out all necessary work required for the successful implementation of VEEIES; - Where required, provide the required reviews and approvals in a timely manner; - Participate in WB supervision/evaluation missions; - Assist the PMB in solving problems which might occur during implementation; - Coordinate with other line ministries for project restructuring, if needed. Project Management - Responsible for day-today overall management and Board (PMB) under coordination of VEEIES, GDE of MOIT - Hire consultant to carry out safeguard capacity building for PFIs - Monitoring the safeguard implementation of PFIs and IEs - Review safeguard monitoring reports submitted to the PMB 58 Community/agencies Responsibilities by PFIs, IEs; - Reporting to MOIT and the WB on overall safeguard performance of VEEIs World Bank - Conduct project safeguard supervision and provide guidance, capacity to the PMB/PFIs in project implementation including safeguard execution. - Review and clear the TOR for category A subprojects - Conduct prior review and provide clearance of safeguard documents for all category A and selected category B subprojects. Participating Finance - Each PFI will set up one Project Implementing Unit (PIU) and Institution (PFIs) assign one environmental and social designated staff responsible for safeguard evaluation and monitoring of subproject during the implementation. - PIU is required to recruit and train the environment and social safeguard specialists as early as possible in early years of the project to make sure that the environmental staff of PFIs meet the ESMF. - Screening, reviewing and appraisal of Environmental Documents (during preparation) and monitoring reports (during implementation) from IEs - Monitoring the implementation of environment and safety compliance by contractor/equipment supplier during implementation and during 1st year of operation by - Report on implementation including environmental compliance to WB and PMB for review Industrial Enterprises - Preparing appropriate environmental documents required by (IEs) Vietnamese law and WB - Obtain approval and clearance of the safeguard document in line with the national regulation and the WB’s safeguard policies - Carrying out mitigation measures to mitigate impacts as specified in approved environmental safeguard documents - Internal monitoring the implementation of mitigation measures by contractors - Report on sub-project environmental compliance to PFIs Environmental - During the preparation period, the EC is hired by IEs as Consultant (EC) necessary to prepare the Environmental Monitoring Reports as required by the sub-project. - For all the subproject determined as category A subproject, the environmental documents should be prepared by competent firms. - The TOR for consultant prepare the category A subproject has to be submitted to the Bank for prior review - During the operation period, the IEs shall hire consultant to conduct internal monitoring as described in the 59 Community/agencies Responsibilities approved/cleared EA documents. Contractor - Responsible for carrying out mitigation measures and self- monitoring during construction. It is required that the contractor get all permissions for construction (waste disposal, traffic control and diversion, excavation, labor safety, etc. before civil works) following current regulations. Construction - The CSC will be responsible for routine supervising and Supervision Consultant monitoring all construction activities and for ensuring that (CSC) Contractors comply with the requirements of the contracts and the EMP/ECOP. - Assists IE in reporting and maintaining close coordination with the local community. Local authorities - Approving environmental reports (EIA/EPP) and carry out including DONRE environmental monitoring as mandated by GoV regulations. Local communities - According to Vietnamese practice, the community has the right and responsibility to routinely monitor environmental performance during construction to ensure that their rights and safety are adequately protected and that the mitigation measures are effectively implemented by contractors and the IA. If unexpected problems occur, they will report to the CSC/IE. - These organizations could be a bridge between the PPC/DPC, communities, contractors, and the PMB by assisting in Social organizations, community monitoring. NGOs and civil society - Mobilizing communities' participation in the subproject, groups providing training to communities. - Participating in solving environmental problems, if any. Incorporation of ESMF into Project Operational Manual It is imperative to look at Project Operational Manual (POM) with frameworks. The POM should have sections on environmental issues/procedures. These sections should provide links to: (i) subproject screening; (ii) appropriate mitigation actions and/or checklists; (iii) practical pre-tested safeguard forms used at field subproject level; (iv) development of supplemental tools/guidance; (v) details on how monitoring and evaluation for safeguards will be undertaken; and (vi) definition and role of third party auditing. VII. CAPACITY BUILDING, TRAINING AND TECHNICAL ASSISSTANCE Institutional Capacity Assessment The potential PFIs include Vietcombank, BIDV, Vietinbank, HSB, Techcombank. Among The knowledge and experience of key stakeholders of safeguard implementation i.e. IEs, PFIs and MOIT are considered limited. The MOIT has engaged in several WB’s funded project. However, it is unlikely that the safeguard staff assigned for previous project could participated 60 in the VEEIEs project. The interested PFIs include BIDV, SHB, Vietinbank, Vietcombank, and Techcombank. All those banks are currently participating Renewable Energy Development Project funded by the Bank. Two PFIs (BIDV and Vietinbank) have participated in Rural Finance 3 Project (RF3). In BIDV, there is an Environmental Division equipped with 03 staffs with environmental background and are familiar with WB’s safeguard policies explicitly to apply in the agricultural subprojects. Still, other potential PFIs have not experienced with the WB’s safeguard policies. IEs have almost no experience with those policies. Close guidance and tailored training program must be developed and implemented to enhance capacity of those stakeholders in performing the safeguard policies. During the Project implementation, each PFIs will assign one competent staff to be responsible for environmental and social safeguard implementation. In addition, one Consultant will be hired by PMU to carry out capacity building for PFIs environmental and social staffs and IEs on safeguard implementation. Training Given that most of the key mitigation measures are good engineering practices, the safeguard training should focus on increasing knowledge on (a) safeguard policy and procedures to implement the safeguard instruments (EMP/ESMF) designed for the Project and subproject (b) specific training on supervision and monitoring Contractor and EC on environmental protection performance, including forms and reporting process, and (c) general knowledge on good construction practices for mitigating potential impacts on local environment and safety aspects. Based on actual demands in ESMF implementation, a capacity building and training program for relevant agencies is established as shown in Table 8 below. The cost for capacity building program is included in cost for safeguard implementation. Table 8. Proposed programs on capacity building on environmental management Training Subject to be No of Training Organization Budget content trained trainees time unit Training on PMB staffs; 200 In sub- PMB in A part of safeguard policy Environmental project’s coordination environment and procedures, consultancy, preparation with al consultant the safeguard IEs, PFIs stage. Environmental contract implementation Consultant Technical Assistance Given the number of the subprojects and its nature/locations, it is anticipated that at least 2 safeguard training courses should be provided during the first two years of VEEIE project implementation. The training should focus on the Vietnamese environmental regulations and WB’s safeguard policy, and procedures, specifically on the screening and appraisal of environmental document during the subproject preparation; knowledge, policies, and procedures related to environment issues could be completed before construction start; 61 monitoring the environmental compliance of IEs during subproject implementation. All key staff responsible for the activities should participate in the training. The supervision of contractor training should be conducted at least 1 month before the construction. The key participants should include PFI environmental staff, IEs, PMB and its environmental consultant, and representatives from local agencies, local communities, and/or mass organizations, responsible for supervision of contractor. VIII. ESMF IMPLEMENTATION BUDGET Estimated budget and financial source for ESMF implementation Activities Financial Source PMB’s capacity building for PFIs, IE IBRD, part of technical assistant cost under PMB monitoring on PFIs, IEs’ safeguard component 3 performance Safeguard designated staff under PIU of each PFIs banking PFI Development of subproject environmental IEs documents Implementation of mitigation measures As part of construction/installation contracts Internal monitoring by CSC, IEs during IBRD, as part of the subproject investment subproject implementation IX. GRIEVANCE AND REDRESS MECHANISM This grievance and redress mechanism mentioned bellow is applied not only this framework but also in RPF and EMPF. The IE shall establish a complaints and grievances mechanism to receive and resolve the resettlement issues of project-affected communities/person. The mechanism shall be based on principles as (i) proportionality; (ii) accessibility; (iii) transparency; and (iv) cultural appropriateness as follows. (i) Proportionality means scaling the mechanism to the project needs. In a project with low potential adverse impacts, simple and direct mechanisms for problem solving is preferred for addressing and resolving complaints such as public meetings, telephone hotline, existing media, brochures, and a community liaison officer; (ii) Accessibility means establishing a mechanism which is clear, free of charge and easy to access for all segments of the affected communities and other potential stakeholders. The best way of achieving this is to localize the point of contact. This is valid both for the owner and its construction contractor. Related to that, staff with the appropriate skills, training and familiarity with community liaison work should be employed in the field as quickly as possible. Accessibility enables owner to build more constructive relationships with local communities. This will also help intervene quickly in any dispute or environmental issues 62 and in an appropriate manner because maintaining a regular presence of a familiar face in the field greatly helps engendering trust and thus, constructive and closer relations; (iii) Transparency means that members of the affected communities know who is responsible for handling the complaints and communicating the outcomes of corrective actions to be taken about the complaints. This will be helpful in that people have confidence in the grievance mechanism to be used both by project owner and the construction contractor; (iv) Culturally appropriateness means having cultural sensitiveness while designing and executing the grievance mechanism. To implement these principles, the IE will be accessible to its stakeholders and should respond to their complaints in the shortest possible time. The critical issue for responding to complaints is to ensure that all received complaints are recorded; relevant division of the IE is responsive to complaints; and that corrective actions are mutually acceptable. Thus, responses to complaints will be satisfactory for both parties, actions are followed up, and the complainants will be informed about the outcomes of the corrective actions (see Figure 6). In case, there is no agreement between the parties and the project affected communities/person, complaints and grievances shall be submitted to local and state government justice system with responsibilities as follows. VEEIE level - At Commune People’s Committee (CPC) An aggrieved affected household may bring his/her complaint before the receiving department of a Commune People’s Committee to be received and guided for necessary procedures. The CPC will meet personally with the aggrieved affected household and will have 5 days following the lodging of the complaint to resolve it (Note: in remote and mountainous areas, the complaint should be resolved within 15 days. The CPC secretariat is responsible for documenting and keeping file of all complaints that it handles. Upon issuance of decision of CPC, the complainants can make an appeal within 30 days. If the second decision has been issued and the household is still not satisfied with the decision, the household can elevate his/her complaint to the DPC. Second level - At District People’s Committee (DPC) Upon receipt of a complaint from a household, the DPC will have 15 days (or 45 days in remote and mountainous areas) following the lodging of the complaint to resolve the case. The DPC is responsible for documenting and keeping file of all complaints that it handles. Upon issuance of decision of DPC, the complainants can make an appeal within 30 days. If the second decision has been issued and the household is still not satisfied with the decision, the household can elevate his/her complaint to the PPC. Third level - At Provincial People’s Committee (PPC) Upon receipt of complaint from the household, the PPC will have 30 days (or 45 days in remote and mountainous areas) following the lodging of the complaint to resolve the case. The PPC is responsible for documenting and keeping file of all complaints. Upon issuance of decision of PPC, the household can make an appeal within 45 days. If the second decision has been issued and the household is still not satisfied with the decision, the household can elevate his/her complaint to the court within 45 days. 63 Final level - Court of Law Decides Should the complainant file his/her case to the court and the court rule in favor of the complainant, then provincial government agency will have to increase the compensation at a level to be decided by the court. In case the court will rule in favor of PPC, the complainant will have to receive compensation as described in the approved compensation plan and comply with all requirements of land clearance. To assure that the mechanism described above is pragmatic and acceptable to affected communities/persons, consultations with local authorities and affected communities about this mechanism is in need, particularly consultations with vulnerable groups. Complaints and Grievances from Affected Person (AP) Verbally or in writing Community Representative (CR) Verbally or in writing Registration by the IE Discuss among (AP)/(CR)/ (The IE and /or Contractor) AP may resort to the No justice system Agreement obtained? Yes Action as agreed Close out Figure 6. Basic Complaints and Grievances Mechanism of the Project X. ESMF CONSULTATION AND DISCLOSURE Public consultation and disclosure of the VEEIE phase subproject EIAs and EMPs will be carried during project preparation. Consultation with people and households directly or indirectly affected by the project, local authorities, central and local state agencies, and mass organizations will be conducted at the subproject level. 64 In the process of preparing this ESMF, a consultation workshop on the ESMF was held in 9th Octorber 2015. One week before the public consultation, the invitation to the consultation workshop and draft ESMF were sent to relevant stakeholders including PMB, representatives of MOIT, local consultant and potential participating PFIs. Key participants included staff of implementing PMBs, representatives of MoIT, and local consultants. The consultations aimed to explore the potential social and environmental impacts of the project so as to, on the basis of the findings, inform project design/intervention strategy, as well as develop appropriate safeguards instruments. The draft ESMF has been circulated to concerned ministries and project provinces to receive additional comments before finalization. Opinions and concerns provided during the consultations were taken into account in the preparation and finalization of the ESMF. The result of the public consultation focused on some points as below: - To clarify the scope of these frameworks (available projects or potential projects, inside or outside of plants’ boundaries, environment safeguard and social assessment etc.) and so that it is simple and easy to apply by IE; - To clarify responsibilities on approving these policy frameworks. - To update new policies on environmental protection and clean technologies of MOIT; - The social sections (gender, occupations etc.) should be assessed more detailed; - To facilitate projects’ public consultations and monitoring to be more effectively and strictly. The draft ESMF in Vietnamese has been properly disclosed locally at the MOIT office on 01 October before the public consultation. The final draft ESMF in Vietnamese language will be disclosed at MOIT website and the draft ESMF in English language will be disclosed at the Bank Infoshop prior to the appraisal mission. 65 XI. ANNEXES The following annexes have been prepared to assist IEs and the PFI in the implementation of the VEEIEs Environmental Safeguards Framework. A description of each Annex follows: - Annex 1: Environmental and Social Safeguard Checklist - Annex 2: Environmental and Social Impact Screening - Annex 3: Guidance for Preparation of an Environmental Management Plan - Annex 4: Environmental Codes of Practice (ECOPs). - Annex 5: PCB Management Procedure - Annex 6: Minutes of Public consultation - Annex 7: WBG EHS Guidelines and relevant Industry Guidelines. 66 Annex 1. Environmental and social safeguards checklist With all sub-project/activities under Component 1 of VEEIE project, the PFI environmental staff/consultant will do screening to determine the eligibility of subprojects. The PFI environmental staff or/and consultant will complete the checklist. The VEEI will finance the subproject which By indicating “Yesâ€? to any safeguard policy other than OP4.01,OP/BP 4.1, OP/BP4.10 and OP/BP4.12 the sub-project will be considered. Note: if any policy is triggered by the sub-project, the project’s owner must indicate the severity of the potential impact as instructed in the Table below. 67 Environmental Does the project have the No Yes Assessment potential for adverse If Yes, indicate here the potential severity environmental or social risks OP/BP 4.01 for the impact and proposed project design and impacts in its area of elements that will help prevent potential influence adverse impacts Natural Habitats The Bank does not finance No Yes projects that degrade or OP/BP 4.04 If Yes, indicate here either proposed convert critical habitats alternative sites(s) or if no alternative sites (protected areas or sites are available proposed project design important for biodiversity). elements that will help prevent potential Do the project activities have adverse impacts the potential to cause significant conversion (loss) or degradation of non-critical natural habitats? (The loss can occur either directly e.g. construction activities) or indirectly (through human activities induced by the project) Pest management Are any pesticides or No Yes procurement of pesticide OP 4.09 If Yes, indicate here proposed project equipment being financed by design elements (integrated Pest the project management) that will help prevent Does the project introduce No potential adverse impacts new pest management practices or expand or alter existing pest management practices Are there other project No activates that may lead to substantially increased pesticide use Does the project include the No manufacture or disposal of environmentally significant quantities of pest control products? Forests Does the project have the No Yes potential to have an impact on OP/BP 4.36 If Yes, indicate here proposed project the health and quality of design elements that will help prevent forests or the rights and potential adverse impacts welfare of people and their level of dependence upon or interaction with forests? Does the project aim to bring No Yes about changes in the If Yes, indicate whether the management management, protection, or will ensure sustainability of the forest utilization of natural forests or resources plantations 68 Safety of Dams Are any project activities No Yes related to the construction for a large-scale dam? Physical Cultural Would project activities likely No Yes Resources adversely affect physical If Yes, indicate here proposed project cultural resources? OP/BP 4.11 design elements that will help prevent These could be temples, burial potential adverse impacts sites, or archeological sites Projects in Are project activities being No Yes international conducted in international If Yes, please contact to the Bank for further Waterways waterway information OP/BP 7.50 Projects on Is any of project activities is No Yes Disputed Area being conducted in a disputed If Yes, please contact to the Bank for further area OP/BP 4.37 information Involuntary Is there any possibility that Yes Resettlement project activities would If Yes, refer to Resettlement Plan displace persons Framework involuntarily? Please note that loss of land or other assets caused by: (i) relocation or loss of shelter; (ii) loss access to assets in protected areas resulting in adverse impacts on livelihoods; (iii) loss of income sources or means of livelihood, whether or not the affected people must move to another location. If Land is acquired and no person is involuntarily displaced, the policy is not triggered. Indigenous Would the project likely have Yes peoples (ethnic negative impacts on ethnic If Yes, refer to Ethnic Minority Plan minorities) minorities or have the Framework potential to bring positive benefits to ethnic minorities Date Screened by Verified by (full name and signature) (Sign and stamp by the PFIs director) 69 Annex 2. Subproject Environmental and Social Impact Screening Checklist This subproject screening checklist is intended for the use of PFIs so that they can determine the appropriate type of safeguards documentation that will be required by the World Bank for the subproject, in conformance with the ESMF for the Project. The PFI is encouraged to send this checklist to the Task Team Leader (TTL) to ensure that the World Bank agrees with the results of the screening prior to the Borrower’s hiring of consultants to prepare safeguard documents. NAME OF PROJECT Subproject Name: Subproject Location: (e.g. region, district, etc.) Type of activity: (e.g. new construction, rehabilitation, periodic maintenance) Subproject Owner and Address: Environmental Category of the Main Project: (e.g., A or B) 1. Eligibility Screening Eligibility screening is conducted to determine if a subproject is eligible for funding under the project. To avoid significant adverse environmental and social impacts, some projects may include criteria for ineligibility or have an ineligible activity list to screen out subprojects. .These criteria or the ineligible list are included in the ESMF and during the project implementation subprojects are screened against these criteria. The following subprojects will not be eligible for funding under the project.  The subproject that involve the significant conversion or degradation1of critical natural habitats2.  The subproject that would involve significant conversion or degradation of critical forest areas3.  The subproject that contravenes applicable international environmental agreements.  The subproject that would be located in a physical cultural resources site recognized at the national or provincial level.  environment and social impacts so complex and adverse that are beyond the capacity of the IEs to manage The subprojects triggering OP/BP 7.50; OP/BP 7.60; OP/BP4.04, OP/BP 4.37; OP.BP 4.09 has to be prior consulted with the WB. Please note that the owner of the subproject is expected to comply with all national legislation and standards and with obligations (standards, restrictions or similar) of the country under 1, 2, 3 – Consult the Bank’s external safeguards website at http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/EXTPOLICIES/EXTSAFEPOL/0,,menu PK:584441~pagePK:64168427~piPK:64168435~theSitePK:584435,00.html for the definitions of “significant conversionâ€?, “critical natural habitatsâ€?, and critical forestsâ€? 70 international conventions, treaties, agreements and protocols. 2. Environmental and Social Impact Screening The impact environmental screening of each proposed subproject is to determine the appropriate extent and type of Environmental Assessment. The outcome of this screening is used to classify the subprojects into one of three categories, depending on the type, location, sensitivity, and scale of the subproject and the nature and magnitude of its potential environmental impacts (OP 4.01, paragraph 8). (a) Category A: A proposed project is classified as Category A if it is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. (b) Category B: A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas - including wetlands, forests, grasslands, and other natural habitats - are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measures can be designed more readily than for Category A projects. (c) Category C: A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EA action is required for a Category C project. 2.1 Category A Screening Criteria The following set of screening questions is intended to determine if the subproject has the potential to cause significant adverse impacts (i.e., is the subproject a Category A). Table 1.Category A Screening Criteria Screening Questions Yes No Remarks 1. Does the subproject have the potential to cause significant adverse impacts to natural or critical natural habitats? Leads to loss or degradation of sensitive Indicate location and type of natural Natural Habitats defined as: land and water habitat and the kind of impacts that areas where (i) the ecosystems' bio-logical could occur, e.g., loss of habitat and communities are formed largely by native plant how much, loss of ecosystem and animal species, and (ii) human activity has services, effects on the quality of the not essentially modified the area's primary habitat. State why these impacts are ecological functions. Important natural habitats or are not significant. may occur in tropical humid, dry, and cloud Note that the World Bank does not forests; temperate and boreal forests; support projects involving the Mediterranean-type shrub lands; natural arid significant conversion of natural and semi-arid lands; mangrove swamps, habitats unless there are no feasible coastal marshes, and other wetlands; estuaries; alternatives for the project and its sea grass beds; coral reefs; freshwater lakes siting, and comprehensive analysis and rivers; alpine and sub alpine environments, demonstrates that overall benefits 71 including herb fields, grasslands, and paramos; from the project substantially and tropical and temperate grasslands. outweigh the environmental costs. Leads to loss or degradation of Critical natural Note that the World Bank cannot habitat, i.e., habitat that is legally protected, fund any projects that result in officially proposed for protection, or significant conversion or degradation unprotected but of known high conservation of critical natural habitats. value. Critical habitats include existing Indicate location and type of critical protected areas and areas officially proposed natural habitat and state why they are by governments as protected areas (e.g., or are not significant. reserves that meet the criteria of the World Conservation Union [IUCN] classifications, areas initially recognized as protected by traditional local communities (e.g., sacred groves), and sites that maintain conditions vital for the viability of these protected areas. Sites may include areas with known high suitability for bio-diversity conservation; and sites that are critical for rare, vulnerable, migratory, or endangered species. 2. Does the subproject have the potential to cause significant adverse impacts to physical cultural resources? Leads to loss or degradation of physical Describe location and type of cultural cultural resources, defined as movable or resources and the kind of impacts immovable objects, sites, structures, groups of that could occur. State the level of structures, and natural features and landscapes protection (local, provincial, national that have archaeological, paleontological, or international).Are any of these historical, architectural, religious, aesthetic, or sites considered important to other cultural significance. They may be preserve in situ, meaning that the located in urban or rural settings, above or resources should not be removed below ground, or under water. Their cultural from their current location? interest may be at the local, provincial or State why impacts are or are not national level, or within the international significant. community. Potentially results in a contravention of Describe any impacts that might national legislation, or national obligations contravene national or international under relevant international environmental legislation concerning cultural treaties and agreements, including the resources. If considered not UNESCO World Heritage Convention or significant, explain why. affect sites with known and important tourism or scientific interest. 3. Does the subproject have the potential to cause significant adverse impacts on the lands and related natural resources used by ethnic minorities? Potentially result in impacts on lands or Describe the type and extent of territories that are traditionally owned, or impacts and the significance of customarily used or occupied, and where alterations to the resources of the access to natural resources is vital to the affected minorities. sustainability of cultures and livelihoods of Note that an Ethnic Minority minority peoples. Potentially impact the Development Plan will also be cultural and spiritual values attributed to such 72 lands and resources or impact natural resources required in accordance with World management and the long-term sustainability Bank OP 4.10. of the affected resources. 4. Does the subproject have the potential to cause significant adverse effects to populations subject to physical displacement? Leads to physical displacement of populations Indicate the numbers of households dependent upon lands or use of specific use of affected and the resources that will resources that would be difficult to replace or be difficult to replace in order to restore? Otherwise lead to difficult issues in the achieve livelihood restoration. ability of the subproject to restore livelihoods? Note that a Resettlement Action Plan will need to be prepared in accordance with World Bank OP 4.12. 5. Does the subproject entail the construction of a large dam? Does the subproject require construction of a Describe the issues and note the dam that is: requirements of OP 4.37 concerning ï‚· 15 meters or more in height the appointment of an Independent Panel of Experts. ï‚· between 10 and 15 meters in height with special design complexities--for example, an unusually large flood-handling requirement, location in a zone of high seismicity, foundations that are complex and difficult to prepare, or retention of toxic materials. ï‚· under 10 meters in height but expected to become large dams during the operation of the subproject? Does the operation of the subproject rely on the If yes, this may not always mean that performance of: a Category A EIA is required, but ï‚· an existing dam or a dam under special care must be taken, because construction (DUC); the World Bank has specific requirements to ensure the safety of ï‚· power stations or water supply systems that the performance of the existing dam draw directly from a reservoir controlled by or dam under construction. World an existing dam or a DUC; Bank requires inspection and ï‚· diversion dams or hydraulic structures evaluation of dam or DUC, its downstream from an existing dam or a performance and operation and DUC, where failure of the upstream dam maintenance procedures, and could cause extensive damage to or failure recommendations for any remedial of the new World Bank-financed structure work or safety-related measures; and irrigation or water supply projects that previous assessments can also will depend on the storage and operation of evaluated. an existing dam or a DUC for their supply of water and could not function if the dam failed. 6. Does the subproject entail the procurement or use of pesticides? 73 Do the formulations of the products fall in If yes, this may not always mean that World Health Organization classes IA and IB, a Category A EIA is required, but or are there formulations of products in Class special care must be taken. The II?, World Bank will not finance such products, if (a) the country lacks restrictions on their distribution and use; or (b) they are likely to be used by, or be accessible to, lay personnel, farmers, or others without training, equipment, and facilities to handle, store, and apply these products properly. 7. Does the subproject have the potential to cause irreversible impacts or impacts that are not easily mitigated? Leads to loss of aquifer recharge areas, affects Name the water bodies affected and the quality of water storage and catchments describe magnitude of impacts. responsible for potable water supply to major population centers. Leads to any impacts such that the duration of Describe any impacts considered to the impacts is relatively permanent, affects an be permanent, affecting a large extensive geographic area or impacts have a geographic area (define) and high high intensity. intensity impacts. 8. Does the subproject have the potential to result in a broad diversity of significant adverse impacts? Multiple sites in different locations affected Identify and describe all affected each of which could cause significant losses of locations. habitat, resources, land or deterioration of the quality of resources. Potential, significant adverse impacts likely to Identify and describe the types of extend beyond the sites or facilities for the impacts extending beyond the sites or physical works. facilities of the physical works. Transboundary impacts (other than minor Describe the magnitude of the alterations to an ongoing waterway activity). transboundary impacts. Need for new access roads, tunnels, canals, Describe all activities that are new power transmission corridors, pipelines, or that are required for the main activity borrow and disposal areas in currently to function. undeveloped areas. Interruption of migratory patterns of wildlife, Describe how migrations of people animal herds or pastoralists, nomads or semi- and animals are affected. nomads. 9. Is the subproject unprecedented? Unprecedented at the national level? Describe why and what aspects are unprecedented. Unprecedented at the provincial level? Describe why and what aspects are unprecedented. 74 10. Is the project highly contentious and likely to attract the attention of NGOs or civil society nationally or internationally? Considered risky or likely to have highly Describe perceived risks and controversial aspects. controversial aspects Likely to lead to protests or people wanting to Describe the reasons that subproject demonstrate or prevent its construction. is highly unwelcome. If the answer is yes to any of the above screening questions, the subproject is likely to be considered a Category A and an EIA meeting World Bank standards, including an EMP, will be required. The PMU is advised to discuss the results of this screening with the TTL, before starting environmental and social studies of the subproject. There are some differences in the World Bank and the government requirements for a World Bank category A project in terms of preparation of TORs, consultation, content and structures of the EIA report. Two separate EIAs to satisfy the World Bank and the government requirements will be needed. Note: If the main project has not been categorized as a Category A, then any subproject where the answer is “yesâ€? to the screening questions cannot be done. 2.2. Category C Screening Criteria The following set of screening questions is intended to determine if the subproject has the potential to cause minimal or no adverse impacts (i.e., is a Category C). Table 2.Category C Screening Criteria Screening Questions Y N Remarks 1. Subproject activities are limited to training, technical Describe activities. assistance and capacity building. 2. Training and capacity building do not require use of Support this statement. chemicals, biological agents, pesticides. 3. There is no infrastructure to be demolished or built. Support this statement. 4. There are no interventions that would affect land, water, air, Support this statement. flora, fauna or humans. 5. If scientific research is being performed, the research is of If yes, discuss with the such a nature that no hazardous or toxic wastes are created World Bank and the research does not involve recombinant DNA or environmental other research that would create dangerous agents should specialists. they be released from contained, laboratory conditions 2.3 Category B Screening Many of the subprojects to be proposed will be Category B. They may have similar types of impacts to Category A, but the impacts are not irreversible and they are less extensive, less intensive, less adverse, more easily mitigated, not likely controversial and not unprecedented. After the screening for Category A and Category C is applied and if the conclusion is reached that the subproject is not A and is not C, then the subproject should be categorized as B. Category B also requires an EIA or other EA instrument in accordance with the World Bank OP 4.01.The PMU will apply the criteria of the Vietnamese regulation to determine whether to 75 prepare an EIA or an EPC in according with the Law on Environmental Protection and associated EA Decree and Circular. In most cases, an EMP consistent with World Bank policy will be required (see Annex 4). For other case, a simplified EMP or an ECOP should suffice. The issues that may need to be addressed in a Category B safeguards document are variable and will depend upon the type of subproject, its location and surrounding land uses and the kinds of construction and operational procedures that will be used. 76 2.4 Environmental and Social Impact Checklist Table 3 presents a checklist, the purpose of which is to assist the Borrower in preparing the EA instrument, including the EMP. Table 3.Potential Environmental and Social Impacts to be Addressed Does the subproject entail No Low Medi High Not Remarks these environmental um know impacts? n 1. Encroachment on historical/cultural areas 2. Encroachment on an ecosystem Describe and (e.g. natural habitat sensitive or briefly assess protected area, national park, nature impact's level reserve etc....) 3. Disfiguration of landscape and increased waste generation 4. Removal of vegetation cover or cutting down of trees during clearance for construction 5. Change of surface water quality or Indicate how and water flows (e.g. Increase water when this occurs. turbidity due to run- off, waste water from camp sites and erosion, and construction waste) or long- term. 6. Increased dust level or add Indicate how and pollutants to the air during when this occurs construction 7. Increased noise and/or vibration Indicate how and when this occurs 8. Resettlement of households? If yes, how many households? 9. Use of resettlement site that is Briefly describe environmentally and/or culturally the potential sensitive impacts 10. Risk of disease dissemination from Note estimated construction workers to the local number of workers peoples (and vice versa)? to be hired for project construction in the commune/district and what kind of diseases they might introduce or acquire. 11. Potential for conflict between construction workers and local peoples (and vice versa)? 12. Use of explosive and hazardous chemicals 77 13. Use of sites where, in the past, there were accidents incurred due to landmines or explosive materials remaining from the war 14. Construction that could cause disturbance to the transportation, traffic routes, or waterway transport? 15. Construction that could cause any damage to the existing local roads, bridges or other rural infrastructures? 16. Soil excavation during subproject's construction so as to cause soil erosion 17. Need to open new, temporary or Estimate number permanent, access roads? of and length of temporary or permanent access roads and their locations 18. Separation or fragmentation of Describe how. habitats of flora and fauna? 19. Long-term impacts on air quality 20. Accident risks for workers and community during construction phase 21. Use of hazardous or toxic materials and generation of hazardous wastes 22. Risks to safety and human health Describe how. Does the subproject entail land acquisition or restriction of access to resources? 23. Acquisition (temporarily or List land areas for permanently) of land (public or permanent and private) for its development temporary land acquisition, type of soils, duration and purpose of acquisition 24. Use land that is currently occupied or regularly used for productive purposes (e.g., gardening, farming, pasture, fishing locations, forests) 25.. Displacement of individuals, families or businesses 26. Temporary or permanent loss of crops, fruit trees or household infrastructure 27. Involuntary restriction of access by people to legally designated parks and protected areas If the answer to any of the questions 23-27 is “Yesâ€?, please consult the ESMF; preparation of a Resettlement Plan (RP) is likely required. 78 A. Are ethnic minority peoples present in the subproject area? 28. Ethnic minority groups are living within the boundaries of, or nearby, the subproject. 29. Members of these ethnic minority groups in the area potentially could benefit or be harmed from the project. If the answer to questions 28 or 29 is “Yesâ€?, please consult the ESMF; and preparation of an Ethnic Minority Development Plan (EMDP is likely required. Does the subproject entail construction of or depend upon a dam? 30. Involve the construction of a See Table 1 for large dam? definition of a large dam. 31. Depend on water supplied from Describe the an existing dam or weir or a functional dam under construction? relationship between the subproject and the existing dam or a dam under construction. If the answer to question 30 or 31 is “Yesâ€?, please consult the ESMF; a Dam Safety Report (DSR) will likely be required. Does the subproject entail procurement or use of pesticides? 32. What is the World Health See Table 1 for additional Organization’s classification information on pesticides. of the formulation of the To deal with this issue, one specific pesticides to be used? must know the types of pesticides proposed. If the answer to question 32 is yes, please consult the ESMF; a Pest Management Plan (PMP) will likely be required. 3. Next Steps Describe here the result of environmental and social screening and recommend what the IEs needs to do. Highly recommend that they submit the screening report for review regarding the categorization (i) Does the subproject eligible for financing. Please provide explanation. (ii) Determination of subproject category? (iii) Determine specific safeguard instrument/s to be prepared for the subproject; Verified and Screened by Date Full name and signature of PFI staff 79 Annex 3. Guidance for preparation of an Environmental Management Plan 1. Introduction An Environmental Management Plan (EMP) is a part of the Environmental Assessment (EA) process in World Bank-financed projects. The procedures in OP 4.01, Annex C, which describes the EMP, are mandatory. The definition of an EMP is: “A project's environmental management plan (EMP) consists of the set of mitigation, monitoring, and institutional measures to be taken during implementation and operation to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels. The plan also includes the actions needed to implement these measures.â€? The EMP provides an essential link to different instruments in conjunction with EIAs for category A, B, and FI projects, or the ESMF when subprojects are not known in advance; the link between the impacts predicted and mitigation measures specified within an EIA and construction and operational activities. The EMP outlines the anticipated environmental impacts of projects, the measures to be undertaken to mitigate these impacts, responsibilities for mitigation, timescales, costs of mitigation, and sources of funding. Furthermore, EMP lays the framework for continued assessment of potential impacts through the application of monitoring and auditing and consideration of the institutional measures appropriate to accomplish the EMP. This guidance aims to provide a reference for preparing EMPs for a range of types and scales of development projects/subprojects in different biophysical, social, economic and governance contexts. This guidance identifies the policy framework for preparing EMPs for World Bank- financed activities, outlines the main components of EMPs, and discusses means to ensure that commitments within the EMP are carried through to implementation and operation. This guidance is not intended to replace any World Bank safeguards policy or government regulation. This guidance is directed at project implementing agencies including project PMUs, environmental impacts assessment consultants, environmental specialists, project proponents, financial institutions and other parties interested in or affected by EMP processes. 2. When an EMP is needed (Category A, B, FI) The government EIA regulation does not require project proponents to prepare a separate EMP but an Environmental Management and Monitoring Program (EMMP) as a part of an EIA. The EMMP includes project implementation phases, project activities, associated environmental impacts, mitigation measures, cost for mitigation measures, and timeline for implementation measures, implementation arrangement, and responsibility for supervision. The EMMP also includes a monitoring program for monitoring of waste emission, ambient environment quality, and other impacts caused by project. An EMMP is not specifically required for an environmental protection commitment (EPC), but a set mitigation measures, waste treatment facilities, and an environmental monitoring program are required. The World Bank’s Environmental management plan (EMP) is an instrument that details: a) all anticipated adverse environmental impacts (including those involving indigenous people or 80 involuntary resettlement); b) the mitigation measures to be taken during the implementation and operation of a project to eliminate or offset adverse environmental impacts, or to reduce them to acceptable levels; c) monitoring objectives and type of monitoring with linkages to the impacts assessed in the EA report and the mitigation measures described in the EMP; d)the actions needed including institutional arrangements to implement these measures; e) capacity development and training to support timely and effective implementation of environmental project components and mitigation measures; and f) implementation schedule and cost estimates for implementing the EMP, and g) integration of the EMP with project. In comparison with the government EMMP, components of EMP are expressed in more detail; include capacity building, and forging EMP integration into the project's overall planning, design, budget, and implementation. The EMP is an integral part of Category A EAs (irrespective of other instruments used). EAs for Category B projects may also result in an EMP. The EMP is a valuable tool to: i) define details of who, what, where and when environmental management and mitigation measures are to be implemented; ii) provide government agencies and their contractors, developers and other stakeholders better on-site environmental management control over the life of a project; iii) allow a proponent to ensure their contractors fulfill environmental obligations on their behalf, and; iv) demonstrate due diligence. In addition, the EMP is often required as part of tendering for projects. Typically, use of an EMP only applies to smaller projects not affecting environmentally sensitive areas, which present issues that are narrow in scope, well defined, and well understood. For small and very small subprojects with very limited and narrow environmental impacts, using simple general mitigation measures such as an environmental code of practice (ECOP) (see Annex 5 for such a kind of ECOP) alone should suffice for addressing environmental impacts. ECOP can also be used in conjunction with EMP for addressing general limited construction impacts. Examples of projects in the Vietnam portfolio that required EMPs for subprojects (with no World Bank EIA) are: Coastal Resources for Sustainable Development Projects, Rural Distribution Projects, Rural Distribution Project, Red Delta Rural Water Supply and Sanitation Project. Within these projects some subprojects requires only ECOPs. A project of the Human Development Sector, the School Readiness Promotion Project, only requires ECOPs. The EMP is a “living documentâ€? that should be focused on continual improvement and should be updated when there are changes in project design or emerging environmental issues. 3. Objectives of EMP The EMP outlines the mitigation, monitoring, and institutional measures to be taken during project implementation and operation to avoid or control adverse environmental impacts, and the actions needed to implement these measures. It provides the link between alternative mitigation measures evaluated and described within the EIA/EPC report, and ensuring that such measures are implemented. While project design should incorporate environmental sustainability to the extent possible, the EMP deals with environmental issues that cannot be avoided through design. Therefore, the objectives of an EMP should include: - Ensuring compliance with the applicable provincial, national, laws, regulations, standards, 81 and guidelines - Ensuring that there is sufficient allocation of resources on the project budget for implementation of EMP-related activities - Ensuring that environmental risks associated with a project property managed - Responding to emerging and unforeseen environmental issues not identified in the project EIA - Providing feedback for continual improvement in environmental performance. The EMP is a basis for negotiation and reaching agreement between the World Bank and Borrowers on a project’s key social and environmental performance. Its implementation becomes a legal obligation of the Borrower (in Loan Agreement) and contractors (in contracts). An EMP can be a site or project-specific plan developed to ensure that appropriate environmental management practices are followed during a project construction or operation phase. A project EMP is developed by the Borrower, while a site-specific EMP or a construction EMP is usually prepared by contractors, in accordance with requirements of bidding documents (to which it is good practice to attach the project EMP). This guidance covers project EMP. 4. Who Should Prepare an EMP? A project proponent retains primary responsibility for the environmental performance of its projects. As such, the proponent is responsible for ensuring the preparation and implementation of an acceptable project EMP whether for construction or operation. In most cases, during the project preparation, the World Bank would provide both the PMU and an EMP consultant with technical assistance for preparation of the EMP. During appraisal, the World Bank reviews the EMP with the Borrower, to assess the adequacy of the institutions responsible for environmental management, to ensure that the EMP is adequately budgeted, and to determine whether the mitigation measures are properly addressed in project design and economic analysis. During project implementation, subproject EMPs or ECOPs will be prepared in accordance with the guidelines and requires of the project ESMF. The project ESMF details and explains the role and necessity of preparing a subproject EMP during implementation. During a project construction and/or operation, implementation of a project or subproject EMP is often passed on to contractor by a contract specification or a requirement. While an EMP may be implemented by a contractor, the responsibility for implementing the conditions of approval of the project (i.e., the EIA needs to be approved by relevant authority as a condition for approval of the project) lies with the proponent. During project implementation, the World Bank bases supervision of the project’s environmental aspects on the findings and recommendations of the EA, including measures set out in the loan agreement, the EMP, and other project documents. For low-risk projects, the World Bank may conduct post review of subproject EMPs during implementation. 5. Components of EMP In order to achieve the above objectives, the generic scope of an EMP should include the 82 following: - Definition of the environmental management objectives to be realized during the life of a project (i.e. pre-construction, construction, operation and/or decommissioning phases) in order to enhance benefits and minimize adverse environmental impacts. - Description of the detailed actions needed to achieve these objectives, including how they will be achieved, by whom, by when, with what resources, with what monitoring/verification, and to what target or performance level. Mechanisms must also be provided to address changes in the project implementation, emergencies or unexpected events, and the associated approval processes. - Clarification of institutional structures, roles, communication and reporting processes required as part of the implementation of the EMP. - Description of the link between the EMP and associated legislated requirements. - Description of requirements for record keeping, reporting, review, auditing and updating of the EMP. There is no standard format for EMPs. The format needs to fit the circumstances in which the EMP is being developed and the requirements which it is designed to meet. For each mitigate measure, it can often be useful to summarize these in a table that shows for each who is responsible, the location or part of project to which the measure applies, the timing, the budget and the monitoring to verify that the measure is achieving its intended target. There are also additional monitoring needs (unrelated to whether mitigate measures are working as intended).These also can be put into a summary table showing who is responsible, the reason for the measure and part of project to which it applies, the timing, the reporting related to the monitoring and the costs. The level of detail in the EMP may vary from a few pages for a project with low environmental risks, to a substantial document for a large-scale complex Category A project with potentially high environmental risks. The EMP should be formulated in such a way that it is easy to use. References within the plan should be clearly and readily identifiable. Also, the main text of the EMP needs to be kept as clear and concise as possible, with detailed information relegated to annexes. The EMP should identify linkages to other relevant plans relating to the project, such as plans dealing with resettlement or indigenous peoples issues. Although the scope and content of an EMP will be a function of both the significance of a project’s potential impacts and also a project’s site, there are common elements that should be included in all EMPs. These elements, which are suggested for a medium to high risk project, are described in detailed below: 6. Common Elements of an EMP and its Contents Introduction This should provide brief but concise information on (i) the EMP context: describe how the EMP fits into the overall planning process of the 83 project, listing project/subproject environmental studies such as EIA/EPC, approval documentation. (ii) the EMP’s connection with the ESMF (if relevant) and the project. (iii) the objectives of the EMP: describe what the EMP is trying to achieve. The objective should be project specific, not broad policy statements. The project-specific EMP shall form part of the project contract specifications. Policy, legal and administrative framework ï‚· GOV’s regulations: provide brief description of GoV regulations related to EIA and technical regulations and standards applied to the subproject. ï‚· World Bank’s safeguard policy: list World Bank safeguard policies triggered. Project description The project/subproject objective and description should be provided in sufficient detail to define the nature and scope of the project. These should include: (i) project location: site location should be described with location of the activities provided including location maps showing location in the project area as well as details at the subproject level. (ii) construction/operation activities: the description may include a brief description of construction and operation processes; working or operating hours, including details of any activities required to be undertaken outside the hours; employment numbers and type; the plant and equipment to be used; the location and site facilities and worker camps; bill of quantities for civil works. (iii) timing and scheduling: anticipated commencement and completion dates should be indicated. If the project is to be completed in stages then separate dates for each stage should be provided. Baseline data This should provide key information on the environmental background of the subproject as well as its connection with the project area, including maps. Focus should be given to provide clear data on topography, major land use and water uses, soil types, flow of water, and water quality/pollution. Brief description on socioeconomic condition and EM (if relevant) should also be provided. Photos showing existing conditions of project sites should be included. Potential impacts and mitigation measures This section summarizes the predicted positive and negative impacts associated with the proposed project/subproject, particularly those presenting impacts of medium to high significance. A summary should be provided of the predicted positive and negative impacts associated with the proposed project that require management actions (i.e. mitigation of negative impacts or enhancement of positive impacts). The necessary information for this section should be obtained from the EIA process, including the EIA and EPC reports. The impacts should be described for pre-construction, construction, and operation phases. Using a matrix format could help understanding connection between the impacts and mitigation 84 better. Cross-referencing to the EIA/EPCs reports or other documentation is recommended, so that additional detail can readily be referenced. While commonly-known social and environmental impacts and risks of construction activities can be addressed through Environmental Codes of Practices (ECOP), specific mitigation measures should also be proposed to addressed sub-project specific impacts predicted based on site-specific conditions and typology of investments. Some measures can be proposed for incorporation into engineering design to address potential impacts/risks and/or bring about added values of the works provided (e.g. road/access path improvement combined with canal lining). Mitigation measures should include a communication program and grievance redress mechanism to address social impacts. It is necessary to ensure that this section responds to appropriate suggestions and adequately addresses the issues and concerns raised by communities as recorded in the consultation summary presented in Section 8. (See Table 1 for a sample mitigation measures matrix.) Table 1: Example of a Mitigation measure matrix Phase Issue Mitigation Location Applicable Cost of Responsibl Verification Measure s for Standard Mitigation e party mitigatio (e.g. Required to n country, determine measures WB, EU) effectiveness of measures Design/Pre- Construction Construction Operation Decommissioning Depending on impacts of a project, Physical Cultural Resources (OP 4.11) or Pest Management (OP 4.09) may be triggered and physical cultural resources may need to be developed and included in the EMP. Monitoring Monitoring of EMP implementation would encompass environmental compliance monitoring and environmental monitoring during project implementation as described in details below: (i) Environmental compliance monitoring includes a system for tracking environmental compliance of contractors such as checking the performance of contractors or government institutions against commitments expressed in formal documents, such as contract specifications or loan agreements. (ii) The objectives of environmental monitoring is: a) to measure the effectiveness of mitigating actions (e.g. if there is a mitigating action to control noise during construction, the monitoring plan should include noise measurements during construction); b) To meet Borrower’s environmental requirement; and c) to respond 85 to concerns which may arise during public consultation (e.g. noise, heat, odor, etc.), even if the monitoring is not associated with a real environmental issue (it would show good faith by the Borrower). The monitoring program should clearly indicate the linkages between impacts identified in the EA report, indicators to be measured, methods to be used, sampling locations, frequency of measurements, detection limits (where appropriate), and definition of thresholds that will signal the need for corrective actions, and so forth. The cost of environmental monitoring should be estimated and included in sub-project’s total investment costs. It is crucial to monitor and collect data that is useful and will actually be used. There is no value in spending money to collect data that is not properly analyzed, that is not reported or even if reported, no actions can or will be taken. It is useful to know the kinds of analysis to which the data will be subjected before collecting the data to ensure that one can do the anticipated analyses. Table 2 provides an example of how monitoring is structured. Table 2. An example of monitoring plan Phase What Where is How is When isResponsible parameter parameter to parameter the parameter Party be monitored/ to be is to be to be type of monitored/ monitored? monitored? monitoring frequency of (Note if it is equipment? measurement against a set or standard) continuous? Pre-construction Construction Operation Decommissioning EMP Implementation arrangements: The following subsections are recommended. (i) Responsibility for EMP implementation: This describes how the implementing agency plans to assign responsibilities to assure proper flow and use of environmental information for efficient and effective environmental management. For a World Bank- financed project, the stakeholders involved in EMP implementation and monitoring usually include the project implementing agency, the PMU, construction contractors, construction supervision consultant (CSC), independent environmental monitoring consultant (IEMC), local environmental management authorities, NGOs, and communities. Each player should be assigned with practical responsibilities. Good coordination among these actors ensures effective implementation of the EMP. Responsibilities of the CSC and IEMC for monitoring and supervision of EMP compliance during construction and supervision should be indicated in some detail. 86 Generic Terms of Reference for CSC and IEMC should be included in the EMP as annexes. (ii) Incorporation of EMP into detailed technical design and bidding and contractual document: The bidding and contractual documents should include EMP requirements documents to ensure that obligations are clearly communicated to contractors. The bidding documents might also include environmental criteria as part of the basis for selecting contractors. Contractors should also be obliged to follow appropriate environmental, health, and safety standards to reduce associated risks during construction and operation. Therefore, this section should also elaborate on how PMU and its staff will incorporate EMP into the project detailed design and tendering documents. (iii) Environmental compliance framework: During project implementation, the Borrower reports on compliance with environmental commitments, the status of mitigative measures, and the findings of monitoring programs as specified in the project documents. The World Bank bases supervision of the project’s environmental aspects on the EMP as set out in the legal agreements for the project. This subsection elaborates on the environmental duties of the contractor and its safety and environment officer, compliance with legal and contractual requirements, and environmental supervision during construction supervision, and a penalty framework. (iv) Reporting procedures: Procedures to provide information on the progress and results of mitigation and monitoring measures should be clearly specified. As a minimum, the recipients of such information should include those with responsibility for ensuring timely implementation of mitigation measures, and for undertaking remedial actions in response to breaches of monitoring thresholds. In addition, the structure, content and timing of reporting to the World Bank should be designed to facilitate supervision. Responsibility of different actors for reporting and the type of reports should also be clearly indicated. Institutional Strengthening Plan This section describes institutional needs to assure successful implementation of the mitigation and monitoring plans. This may include equipment purchases, training, consultant services, and special studies. Most projects would mainly require capacity strengthening in EMP implementation through training for different stakeholders. All relevant stakeholders should undergo general environmental awareness training and training about their responsibilities under the EMP. The training should ensure that they understand their obligation to exercise proper environmental management during project implementation. Environmental training should include: a site induction, familiarization with the requirements of the EMP; environmental emergency response training; familiarization with site environmental control; targeted environmental training for specific personnel such as environmental staff of PMU, safety and environment officer of the contractor, construction supervision engineer. The need for additional or revised training should be identified and implemented from the outputs of monitoring and reviewing the EMP. Records of all training should be maintained 87 and include: who was trained; when the person was trained; the name of the trainer; and a general description of the training content. Estimated Budget for EMP Implementation These should be specified for both the initial investment and recurring expenses for implementing all measures contained in the EMP, integrated into the total project costs, and factored into loan negotiations. It is important to capture all costs, including administrative, training, environmental monitoring and supervision, costs for mitigation measures to be implemented by contractors, costs for additional environmental studies, and operational and maintenance costs. The aim is to satisfactorily mitigate adverse impacts at least cost. The costs of preparing an EMP, which are borne by the Borrower, vary depending on factors such as the complexity of potential impacts, the extent to which international consultants are used, and the need to prepare separate EMPs for subprojects. Consultation The EMP should clearly describe and justify the proposed mitigation measures to facilitate public consultation. Consultation with affected people and NGOs should be integral to all Category A and B projects in order to understand the acceptability of proposed mitigation measures to affected groups. In some situations, the development of environmental awareness amongst stakeholders is important to ensure effective consultation on the EMP. Where projects involve land acquisition or resettlement, these issues should be fully addressed in resettlement action plan (RAP), and where appropriate in ethnic minority development plan (EMDP). The consultation process can also be used help to design achievable mitigation measures. This process is particularly important when it depends on the buy-in of the affected people. Where appropriate, this may be supported by including formal requirements within the TOR for public participation in developing the EMP. Public consultation of EMP should be an integral part of EIA/EPC consultation. If consultation has not been conducted or not adequately carried out during EIA/EPC preparation process, it must be undertaken to capture the feedbacks of the affected people and communities. This section provides summary on consultation activities to stakeholders, particularly affected households, on the final draft EMP at project/subproject level. This summary should indicate the date and location where consultation meeting took place, the number of participants from affected households, the numbers of female and ethnic minority participants, and suggestions, and concerns raised and responses. Locations and dates of EMP to be disclosed should be provided. Disclosure of the EMP Information disclosure: According to the World Bank’s policy on access to information, all draft safeguard instruments, including the EMP, are disclosed locally in an accessible place and in a form and language understandable to key stakeholders and in English at the InfoShop before the appraisal mission. 88 89 Annex 4. Environmental Code of Practice (ECOPs) (Adapted for VEEIE from standardized ECOPs; and the World Bank General Environmental Health and Safety Guidelines of the World Bank (see Annex 7 for details) – funded small work project in Vietnam). Part 1: Construction contractor’s responsibility ISSUES/RISKS MITIGATION MEASURE Applicable Standards ï‚· The Contractor implement dust ï‚· QCVN 13: 2009/BTNMT: National 1. Dust generation/ control measures to ensure that the technical regulation on ambient air Air pollution generation of dust is minimized and is quality not perceived as a nuisance by local ï‚· TCVN 6438-2005: Road vehicles. residents, maintain a safe working Maximum permitted emission limits of environment, such as: exhaust gas. ï‚· No. 35/2005/QD-BGTVT on inspection - water dusty roads and of quality, technical safety and construction sites; environmental protection; - covering of material stockpiles; - Material loads covered and ï‚· TCVN 6438-2005: Road vehicles. secured during transportation to Maximum permitted emission limits of prevent the scattering of soil, exhaust gas. sand, materials, or dust; ï‚· No. 35/2005/QD-BGTVT on inspection - Exposed soil and material of quality, technical safety and stockpiles shall be protected environmental protection; against wind erosion. ï‚· QCVN 05:2013/BTNMT: National ï‚· All vehicles must comply with technical regulation on ambient air Vietnamese regulations controlling quality allowable emission limits of exhaust ï‚· The WBG General Environmental gases. Health and Safety Guidelines ï‚· Vehicles in Vietnam must undergo a ï‚· The EHS Guidelines and Industry regular emissions check and get Sector Guidelines certified named: “Certificate of conformity from inspection of quality, technical safety and environmental protectionâ€? following Decision No. 35/2005/QD-BGTVT; ï‚· There should be no burning of waste or construction materials (e.g. Bitumen, etc.) on site. ï‚· All vehicles must have appropriate ï‚· QCVN 26:2010/BTNMT: National 2. Noise and “Certificate of conformity from technical regulation on noise vibration inspection of quality, technical ï‚· QCVN 27:2010/BTNMT: National safety and environmental technical regulation on vibration protectionâ€? following Decision No. ï‚· The WBG General Environmental 35/2005/QD-BGTVT; to avoid Health and Safety Guidelines exceeding noise emission from poorly maintained machines. ï‚· Vehicles in Vietnam must undergo a regular emissions check and get certified named: “Certificate of conformity from inspection of quality, technical safety and environmental protectionâ€? following Decision No. 35/2005/QD-BGTVT; ï‚· There should be no burning of waste or construction materials (eg. Bitumen, etc.) on site. 90 ï‚· Cement processing plants should be far from residential areas ï‚· Portable or constructed toilets must ï‚· QCVN 09:2008/BTNMT: National 3. Water pollution be provided on site for construction Technical Standard on underground workers. Wastewater from toilets water Quality as well as kitchens, showers, sinks, ï‚· QCVN 14:2008/BTNMT: National etc. shall be discharged into a technical regulation on domestic conservancy tank for removal from wastewater; the site or discharged into ï‚· QCVN 40: 2011/BTNMT: National municipal sewerage systems; there technical regulation on industrial should be no direct discharges to wastewater; any water body. ï‚· TCVN 7222: 2002: General ï‚· Wastewater over permissible requirements on centralized values set by relevant Vietnam wastewater treatment plant; technical standards/regulations ï‚· The WBG General Environmental must be collected in a conservancy Health and Safety Guidelines tank and removed from site by licensed waste collectors. ï‚· At completion of construction works, water collection tanks and septic tanks shall be covered and effectively sealed off. ï‚· Do not allow waste, litter, oils or foreign materials into water sources ï‚· Do not wash cars or machinery in natural water sources ï‚· A comprehensive listing of sources and location of wastewater discharge will be prepared and maintained ï‚· Appropriate operating procedure will be undertaken for minimization of wastewater (such as neutralizing predisposal treatment, etc.) ï‚· The Contractor shall follow the ï‚· TCVN 4447:1987: Earth works-Codes 4. Drainage and detailed drainage design included for construction sedimentation in the construction plans, to ensure ï‚· Decree No. 22/2010/TT-BXD on drainage system is always regulation of construction safety maintained cleared of mud and ï‚· QCVN 08:2008/BTNMT – National other obstructions. technical regulation on quality of ï‚· Areas of the site not disturbed by surface water construction activities shall be maintained in their existing conditions. ï‚· At all places of work, the Contractor ï‚· Decree No. 59/2007/ND-CP on solid 5. Solid waste shall provide litter bins, containers waste management and refuse collection facilities. ï‚· Decision No. 23/2006/QD-BTNMT ï‚· Solid waste, including displaced with list of hazardous substance equipment, may be temporarily ï‚· Circular No. 36/2015/TT-BTNMT on stored on site in a designated area management of hazardous approved by the Construction substance Supervision Consultant and ï‚· The WBG General Environmental relevant local authorities prior to Health and Safety Guidelines collection and disposal. ï‚· Waste storage containers shall be covered, tip-proof, weatherproof and scavenger proof. 91 ï‚· No burning, on-site burying or dumping of solid waste shall occur. ï‚· Recyclable materials such as wooden plates for trench works, steel, scaffolding material, site holding, packaging material, etc shall be collected and separated on-site from other waste sources for reuse, for use as fill, or for sale. ï‚· If not removed off site, solid waste or construction debris shall be disposed of only at sites identified and approved by the Construction Supervision Consultant and included in the solid waste plan. Under no circumstances shall the contractor dispose of any material in environmentally sensitive areas, such as in areas of natural habitat or in watercourses. ï‚· Used oil and grease shall be ï‚· Decision No. 23/2006/QD-BTNMT 6. Chemical or removed from site and sold to an with list of hazardous substance hazardous wastes approved used oil recycling ï‚· Decree No. 59/2007/ND-CP on solid company. waste management ï‚· Used oil, lubricants, cleaning ï‚· Circular No. 36/2015/TT-BTNMT on materials, etc. from the management of hazardous maintenance of vehicles and substance machinery shall be collected in ï‚· The WBG General Environmental holding tanks and removed from Health and Safety Guidelines site by a specialized oil recycling company for disposal at an approved hazardous waste site. ï‚· Store chemicals in safe manner, such as roofing, fenced and appropriate labeling. ï‚· Do not use unapproved toxic materials, including lead-based paints ï‚· The disposal and management of used equipment and parts and hazardous chemicals shall be carried out in accordance with the national regulations and EHS Guidelines. Specifically, the waste should unassembled safely following applicable practices and removed from site by a certified recycling and/or disposal company. ï‚· Areas to be cleared should be ï‚· Law on Environment protection No. 7. Disruption of minimized as much as possible. 55/2014/QH13 vegetative cover ï‚· The Contractor shall remove and ecological resources topsoil from all areas where topsoil will be impacted on by rehabilitation activities, including temporary activities such as storage and stockpiling, etc; the stripped topsoil shall be stockpiled in areas agreed with the Construction Supervision Consultant for later use in re- 92 vegetation and shall be adequately protected. ï‚· The application of chemicals for vegetation clearing is not permitted. ï‚· Prohibit cutting of any tree unless explicitly authorized in the vegetation clearing plan. ï‚· When needed, erect temporary protective fencing to efficiently protect the preserved trees before commencement of any works within the site. ï‚· The Contractor shall ensure that no hunting, trapping shooting, poisoning of fauna takes place. ï‚· Before construction, carry out ï‚· Law on traffic and transportation No. 8. Traffic consultations with local 23/2008/QH12 management government and community and ï‚· Law on construction No. with traffic police. 50/2014/QH13 ï‚· Significant increases in number of ï‚· Circular No.22/2010/TT-BDX dated vehicle trips must be covered in a 03 Dec., 2010 on labor safety during construction plan previously the construction of civil works. approved. Routing, especially of heavy vehicles, needs to take into account sensitive sites such as schools, hospitals, and markets. ï‚· Installation of lighting at night must be done if this is necessary to ensure safe traffic circulation. ï‚· Place signs around the construction areas to facilitate traffic movement, provide directions to various components of the works, and provide safety advice and warning. ï‚· Employing safe traffic control measures, including road/rivers/canal signs and flag persons to warn of dangerous conditions. ï‚· Avoid material transportation for construction during rush hour. ï‚· Signpost shall be installed appropriately in both water-ways and roads where necessary. ï‚· Provide information to affected ï‚· Decree No. 73/2010/ND-CP on 9. Interruption of households on working schedules administrative penalization security utility services as well as planned disruptions of and society issues water/power at least 2 days in advance. ï‚· Any damages to existing utility systems of cable shall be reported to authorities and repaired as soon as possible. ï‚· Cleared areas such as disposal ï‚· Law on Environment protection No. 10. Restoration of areas, site facilities, workers’ 55/2014/QH13 affected areas camps, stockpiles areas, working platforms and any areas 93 temporarily occupied during construction of the project works shall be restored using landscaping, adequate drainage and revegetation. ï‚· Soil contaminated with chemicals or hazardous substances shall be removed and transported and buried in waste disposal areas. ï‚· Training workers on occupational ï‚· Circular No. 22/2010/TT-BXD dated 03 11. Worker and public safety regulations and provide December 2010 on regulation of Safety sufficient protective clothing for construction safety workers in accordance with ï‚· Directive No. 02 /2008/CT-BXD on applicable Vietnamese laws. safety and sanitation issues in ï‚· Install fences, barriers, dangerous construction agencies warning/prohibition site around the ï‚· TCVN 5308-91: Technical regulation construction area which showing on safety in construction potential danger to public people. ï‚· Decision No. 96/2006/QD-TTg dated ï‚· The contractor shall provide safety 04 May 2006 on management and measures as installation of fences, implementation of bomb mine barriers warning signs, lighting explosive material disposal. system against traffic accidents as ï‚· The WBG General Environmental well as other risk to people and Health and Safety Guidelines sensitive areas. ï‚· If previous assessments indicate there could be unexploded ordnance (UXO), clearance must be done by qualified personnel and as per detailed plans approved by the Construction Engineer. ï‚· Do not use of alcohol by workers during work hours ï‚· Do not work without safety equipment (including boots and helmets) ï‚· The contractor shall coordinate ï‚· Decree No. 73/2010/ND-CP on 12. Communication with local authorities (leaders of administrative penalization security with local local communes, leader of villages) and society issues communities for agreed schedules of construction activities at areas nearby sensitive places or at sensitive times (e.g., religious festival days). ï‚· Copies in Vietnamese of these ECOPs and of other relevant environmental safeguard documents shall be made available to local communities and to workers at the site. ï‚· Disseminate project information to affected parties (for example local authority, enterprises and affected households, etc) through community meetings before construction commencement. ï‚· Provide a community relations contact from whom interested parties can receive information on 94 site activities, project status and project implementation results. ï‚· Inform local residents about construction and work schedules, interruption of services, traffic detour routes and provisional bus routes, blasting and demolition, as appropriate. ï‚· Notification boards shall be erected at all construction sites providing information about the project, as well as contact information about the site managers, environmental staff, health and safety staff, telephone numbers and other contact information so that any affected people can have the channel to voice their concerns and suggestions. ï‚· Do not create nuisances and disturbances in or near communities ï‚· Law on Cultural Heritage 13. Chance find If the Contractor discovers 32/2009/QH12 procedures archeological sites, historical sites, ï‚· Decree No. 98/2010/ND-CP dated remains and objects, including 21/09/2010 of the Government on graveyards and/or individual graves implementing a number of articles of during excavation or construction, the Law on cultural heritage and Law on Contractor shall: amendment and supplementation of ï‚· Stop the construction activities in a number of articles of Law on the area of the chance find; cultural heritage. ï‚· Delineate the discovered site or area; ï‚· Secure the site to prevent any damage or loss of removable objects. In cases of removable antiquities or sensitive remains, a night guard shall be arranged until the responsible local authorities or the Department of Culture and Information takes over; ï‚· Notify the Construction Supervision Consultant who in turn will notify responsible local or national authorities in charge of the Cultural Property of Viet Nam (within 24 hours or less); ï‚· Relevant local or national authorities would be in charge of protecting and preserving the site before deciding on subsequent appropriate procedures. This would require a preliminary evaluation of the findings to be performed. The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage; those include the 95 aesthetic, historic, scientific or research, social and economic values; ï‚· Decisions on how to handle the finding shall be taken by the responsible authorities. This could include changes in the layout (such as when finding an irremovable remain of cultural or archeological importance) conservation, preservation, restoration and salvage; ï‚· If the cultural sites and/or relics are of high value and site preservation is recommended by the professionals and required by the cultural relics authority, the Project’s Owner will need to make necessary design changes to accommodate the request and preserve the site; ï‚· Decisions concerning the management of the finding shall be communicated in writing by relevant authorities; ï‚· Construction works could resume only after permission is granted from the responsible local authorities concerning safeguard of the heritage. 96 Annex 5. PCB management procedure The oil disposed from transformers shall be tested on PCB content. In case the oil is confirmed as PCB contaminated, it would be disposed or recycled in compliance with decree 38/2015/BTNMT on waste and scrap management, circular 36/2015/TT-BTNMT on hazardous waste management, QCVN 56:2013/BTNMT National Technical regulation on refused oily recycle. PCB management procedure are implemented in below steps: 1. Assignment. specify code, classification and storage PCB contaminated waste oil. 2. Registration on the Owner of discharged source. 3. Planning a temporary storage location for PCB contaminated waste oil . The storage shall be comply to decree 38/2015/BTNMT on waste and scrap management, circular 36/2015/TT-BTNMT on hazardous waste management and technical guidelines  Guideline No. 1 on identification of PCBs containing oils, equipment, materials, and waste (issued at document No. 2299/TCMT-KSON by VEA dated November 20, 2014);  Guideline No. 2 on registration of PCB containing oil, equipment, materials, and waste (issued by VEA dated November 20, 2014);  Guideline No. 3 on packing and labeling PCB containing oils, equipment, materials, and waste (issued by VEA dated November 20, 2014);  Guideline No. 4 on storage of PCBs containing oils, equipment, materials, and waste (issued by VEA dated November 20, 2014);  Guideline No. 5 on transportation of PCBs containing oils, equipment, materials, and waste (issued by VEA dated November 20, 2014);  Guideline No. 6 on Decontamination and disposal of PCBs containing oils, equipment, materials, and waste (issued by VEA dated November 20, 2014);  Guideline No. 7 on response and contingency plan development regarding PCBs (issued by VEA dated November 20, 2014);  Guideline No. 8 on prevention and response to PCB incidents (issued by VEA dated November 20, 2014);  Guideline No. 9 on inspection of PCB management (issued by VEA dated November 20, 2014) 4. Contract to a permitted functional unit to collect and transport and treat the hazardous waste included PCB contaminated oil refused. Below diagram is expressed the PCB management procedure would be used for subprojects under VEIEEs: 97 IEs test PCB’s Non PCBs contamination of waste oil PCB Disposal or recycle (comply to Decree no.38/2015/NÄ?-CP) Registration of PCB contaminated waste oil to discharge source be managed confirming to Environmental Owner decree 38/2015/BTNMT on treatment waste and scrap management, consultant (by circular 36/2015/TT-BTNMT contract) Report to management on hazardous waste authorities and recording management, QCVN 56:2013/ report on delivery and BTNMT National Technical received regulation on refused oily recycle and technical guidelines on PCB management 98 Annex 6. Minute of Public Consultation Meeting SUMMARY MINUTE OF MEETING Consultancy on finalizing policy frameworks on Environmental safeguard, Resettlement plan and Ethnic minorities On 09/10/2015, at the Meeting room No. 101 of the Ministry of Industry and Trade, 25 Ngo Quyen Street, Hoan Kiem District, Hanoi, the General Directorate of Energy held a stakeholder consultation workshop on the Policy frameworks on Environmental safeguard, Resettlement plan and Ethnic minorities. 1. Participants - 03 representatives of the General Directorate of Energy; - 01 representatives of the World Bank; - 03 representatives of independent consultants; - 14 participants from relevant institutions and organizations. 2. Purposes of the workshop To receive comments and opinions from stakeholders to finalize 3 policy frameworks, guidelines for implementing energy saving projects with the aims of achieving the national targets on environmental protection and social security pursuant to the policy frameworks of the World Bank and regulations of Vietnam: - Policy framework on environmental safeguard - Policy framework on resettlement plan - Policy framework on ethnic minorities 3. Key points of the workshop 3.1. About “Policy framework on environmental safeguardâ€? Comments and opinions from participants forced on 5 main contents: - The social sections (gender, occupations etc.) should be assessed more detailed; - The project should clarify the scope of these frameworks (available projects or potential projects, inside or outside of plants’ boundaries, environment safeguard and social assessment etc.); - The project should update new regulations on environmental protection and clean technologies; - The World Bank should facilitate projects’ public consultations and monitoring to be more effectively and strictly. For example: budget for public consultation, independent 99 monitoring consultants; - It should be clarify responsibilities on approving these policy frameworks. Explanations and feedbacks from the independent consultants and World Bank: - After discussion with World Bank and General Directorate of Energy about scope of works, the consultant will assess social impacts more detailed; - The scope of these frameworks is for potential projects. These projects would be screened pursuant to Vietnamese regulations and World Bank’s Guidelines. Procedures for eligible projects were shown in the Appendix of the frameworks. Moreover, the assessment of environmental safeguard would follow Vietnamese regulations and World Bank’s Guidelines. - New environmental regulations would be updated to the frameworks; - The World Bank would consider the comments and opinions about public consultations and monitoring; - The policy framework on environmental safeguard is under the approval responsibility of Ministry of Industry and Trade; the Policy framework on resettlement plan and Policy framework on ethnic minorities are under the approval responsibility of the Prime Minister. 3.2. About “Policy framework on resettlement planâ€? and “Policy framework on ethnic minoritiesâ€? Comments and opinions from participants forced on 2 main contents: - These frameworks should focus on gender rather than resettlement plan and ethnic minorities. These issues should be applied on screening procedures; - Some sensitive terms on indigenous people should be translated and written correctly. Explanations and feedbacks from consultant and World Bank: - “Policy framework on resettlement planâ€? and “Policy framework on ethnic minoritiesâ€? are prepared for potential projects in the future. Moreover, all loan projects must have specific gender assessment reports; - Sensitive terms on indigenous people would be corrected and revised in the reports by the independent consultants. 4. Conclusion The workshop was closed at 11:00 a.m of the same day. The consultant will revise the frameworks and report based on the comments and opinions of stakeholders. 100 101 102 Annex 7. Environmental, Health and Safety Guidelines; and Industry Sector Guidelines of the World Bank Group https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustain ability-at-ifc/policies-standards/ehs-guidelines 103