Federated States of Micronesia (FSM) Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan Energy Division National Department of Resources and Development Government of the Federated States of Micronesia October 17, 2018 FINAL FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Quality Information Document Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan Date 17 October 2018 Prepared by Sam Sesega, PSES Consult; tuissesega@gmail.com Revision History Revision Revision Date Details A 23 October Updated integrating WB and other comments received as of 22 October. B 9 October Updated with key comments received by 8 October integrated; reports of consultation for disclosure also included. C 17 October Updated with WB comments addressed, and reports of consultations for disclosure in all four states included. 1 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Acronyms and Abbreviations AP Affected Persons BESS Battery Energy Storage System CIU Centralized Implementation Unit CoP Code of Practice CPUC Chuuk Power Utility Company DoFA Department of Finance and Administration DNRD Department of Natural Resources and Development ED Energy Division EE Energy Efficiency EPA Environmental Protection Agency EEZ Exclusive Economic Zone ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FSM Federated States of Micronesia GBV Gender Based Violence GM General Manager GRM Grievance Redress Mechanism IDA International Development Association IEE Initial Environmental Examinations KIRMA Kosrae Island Resource Management Agency KPUC Kosrae Power Utility Company LED Light Emitting Diode MOU Memorandum of Understanding NEP National Energy Policy NEPA National Environmental Protection Agency NGO Non-Governmental Organisation O&M Operation and Maintenance OHS Operational Health and Safety PCR Physical Cultural Resources PIU Project Implementation Unit PUC Pohnpei Utility Company YSPUC Yap State Power Utility Company 2 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) PMU Project Management Unit PREP Pacific Resilience Project PSC Project Steering Committee PV Photovoltaic RE Renewable Energy RPF Resettlement Policy Framework SECP Stakeholder Engagement and Consultation Plan SEDP Sustainable Energy Development Project SOP Standard Operating Procedures SWMP Solid Waste Management Plan TA Technical Assistance TMP Traffic Management Plan TOR Terms of Reference TT Task Team WB World Bank 3 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Table of Contents Page No. Section Title No. Executive Summary 8 1 Project Description 9 1.1 Background and Rationale 9 1.2 Project Development Objectives 9 1.3 Project Components 9 2 Current Conditions 11 2.1 Government /Energy Sector Policy 13 2.2 Existing Environment and Social Risks 13 3 FSM Legal Framework and WB Safeguards Policies 14 3.1 Applicable FSM laws, Regulations and Policies 18 3.2 World Bank Safeguards Policies 19 4 Environment and Social Conditions 20 4.1 Environmental Context 20 4.2 Socio-cultural Context 24 5 Public Consultations to Date 25 6 Project Grievance Redress Mechanism 25 7 Potential Environmental and Social Impacts 27 7.1 National Level Impacts 27 7.2 Site Specific Impacts 28 7.2.1. New and replacement gensets and ancillary equipment in Kosrae, 29 Pohnpei and Yap 7.2.2. Distribution Network Extension - Weno 29 7.2.3. Mini-Grids – Satowan and Udot, Chuuk 30 7.3. Gender based Violence and Violence Against Children 30 7.4. Laydown Areas 31 7.5. Aggregates Supply 31 7.6. Health and Safety 32 7.7. Cumulative Impacts 32 8 Environmental and Social Management Measures 33 9 SEDAP Institutional Implementation Arrangements 34 10. SEDAP Safeguards Implementation Arrangements 35 10.2 Budget and Safeguards Financing 37 Annexes 1 Mitigation and Monitoring Plans for Gensets and Ancillary 40 Equipment Installation in PUC, YSPSC and KUA 2 Mitigation and Monitoring Plans for Extension of Distribution 48 Network in Weno, Chuuk 3 Mitigation and Monitoring Plans for Mini-grids in Satowan and Udot 51 4 ESHS – Codes of Conduct 60 5 Satowan Consultation Summary Report 66 6 Summary Report of Consultations with Government and Utilities 68 officials in Pohnpei, Chuuk and local people in Udot 7 List of People Consulted 69 8 Occupational Health and Safety Implementation Plan Guidelines 71 9 Solid Waste Code of Conduct Requirements 72 4 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 10 WHO Ambient Air Quality Guidelines 76 11 PCR - Chance Finds Procedures 77 12 Report of Stakeholder Consultations in Chuuk, 8 October 2018 78 13 Report of Stakeholder Consultations in Chuuk, 11 October 2018 81 14 Report of Stakeholder Consultations in Kosrae, 12 October 2018 84 15 Report of Stakeholder Consultations in Pohnpei, 12 October 2018 86 16 Report of Stakeholder Consultations in Yap, 12 October 2018 89 List of Tables 1 SEDAP Components & Budgets 9 2 Project Implementation Roles 11 3 World Bank Safeguards Policies Triggered 18 4 Grievance Redress Mechanism 26 5 Potential Impacts 31 6 Implementation and Supervision Units 34 7 Safeguards Instruments vs Responsible Agencies/Organizations 36 8 Indicative Budget for SEDAP Safeguards Implementation 38 List of Figures 1 SEDAP Grievance Redress Mechanism 26 5 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Executive Summary Scope of ESMP This Environmental and Social Management Plan (ESMP) for the Sustainable Energy Development and Access Project (SEDAP) of the Federated States of Micronesia (FSM) is prepared by the Energy and Research Division of the Department of Resources and Development (DoRD). The ESMP provides the set of mitigation, monitoring, and institutional measures to be taken during the implementation and operation of the SEDAP to eliminate adverse environmental and social impacts, offset them or reduce them to acceptable levels. The ESMP also includes the actions needed to implement these measures. This ESMP applies to all SEDAP physical investments under Components 1, 2 and 3 in Pohnpei, Kosrae, Yap and Chuuk – except for the solar power plant installation in Chuuk under Component 3, for which sites are not yet known. A separate ESMF is prepared for the Chuuk (Weno) solar power plant to guide the identification of sites, their assessment and categorization and the preparations of the environmental safeguards instruments required. The ESMF for Weno solar power installation is disclosed together with this ESMP. Both documents, are complementary and mutually reinforcing in terms of the overall development objective of SEDAP. Both documents are to be read in conjunction with two other safeguards instruments for SEDAP namely the Resettlement Policy Framework (RPF) and the Stakeholder Engagement Plan (SEP). Background In February 2018 the World Bank (WB) approved the Concept Note for the preparation of the Sustainable Energy Development and Access Project (SEDAP). The project will be implemented by the Energy Division and the four State Utilities of FSM. The proposed Project Development Objectives are to improve the Pohnpei Utility Corporation’s operational performance, expand access to electricity in the state of Chuuk and enable renewable energy solutions in the states of Yap and Kosrae. The SEDAP aims to contribute to the long term sustainability of FSM’s energy supply and to support a shift away from diesel power generation to renewable energy (RE). The proposed project comprises of the following five components (to be confirmed during project preparation): Component 1: Improving Reliability of Electricity Supply in Pohnpei (IDA US$12 million). This component will address PUC’s challenges with insufficient available generation capacity, which is way below the installed capacity, to stably cover peak demand, and unscheduled shutdowns of power supply and unsecure waste oil storage. Component 2: Expanding Access to Electricity in Chuuk (IDA US$3 million). This component will support CPUC to expand access to electricity in Chuuk, where the access rate is only 27% due to the remoteness of several islands. Component 3: Scaling-up Renewable Energy Generation in Chuuk, Yap and Kosrae (IDA US$10 million). This component will support CPUC to install the state’s first utility-scale solar power plant to reduce fuel cost of diesel-based power generation and support CPUC in access expansion on the outer islands. The component will also support YSPSC and KUA to 6 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) significantly mitigate the curtailment of the existing RE output and enable the integration of more variable RE through storage capacity and high speed gensets. Component 4: Institutional Strengthening and Capacity Building in the Energy Sector(IDA US$2 million). This component is designed to improve sector governance and financial performance, achieve self-sustainability, and PUC’s proper asset maintenance strategy Component 5: Technical Assistance and Project Management (IDA US$3 million). This component will finance (i) contract staffing for the project, including a project manager, consultancies and non-consultancies, office and other equipment, travel and operational costs, and training and workshops, (ii) recruitment of a full-time Energy Adviser (EA) to assist and support the Secretary of Resources and Development (SoR&D) on energy sector policy matters and development strategy, and (iii) support utilities on respective activities implementation, including provision of support on coordination, Monitoring and Evaluation (M&E) and reporting Environmental and Social Safeguards SEDAP is governed by the relevant laws and regulations of FSM and its states, and the Safeguards Policies of the World Bank. For the World Bank, the following five safeguards Policies are triggered – OP/BP 4.01 Environmental Assessment, OP/BP 4.04 Natural Habitats, OP/BP 4.11 Physical Cultural Resources, OP/BP 4.10 Indigenous Peoples and OP/BP 4.12 Involuntary Resettlement. SEDAP is a Category B project for OP/BP 4.01 Environmental Assessment and OP/BP 4.12 Involuntary Resettlement. A Category B project requires the preparation of this Environmental and Social Management Plan (ESMP) to identify potential environmental and social impacts and prescribe appropriate measures for their mitigation. For OP/BP 4.12 Involuntary Resettlement, a Resettlement Policy Framework (RPF) is prepared to guide any land acquisition needed and the resettlement planning for those activities involving temporary and permanent land taking. Detailed land acquisition and resettlement planning (expected to be in the form of Abbreviated Resettlement Action Plans (A/RAP) will follow once initial screening and categorization of proposed sites is done, which should confirm those requiring the preparation of A/RAPs in accordance with OP/BP 4.12 Involuntary Resettlement. For the proposed solar power plant in Weno Chuuk under Component 3, the sub-project site is not yet confirmed, and different potential sites are being examined. As a result, potential environmental and social impacts are unknown, thus a separate ESMF is prepared to guide the site selection process, assessment of impacts and the preparation of a separate ESMP and other related safeguards documents as necessary. Potential Environmental and Social Impacts Component 1 involving the installation of new and replacement gensets and ancillary equipment within existing State Utilities facilities/compounds will not generate significant environmental and social impacts. There is a low risk of localized spill and site contamination from any used oil during the moving of decommissioned gensets but these are mitigatable with low cost options available. A new waste oil storage tank for PUC will improve the security of waste oil storage. Component 2 and 3 activities subject to this ESMP will generate moderate but reversible impacts. The distribution network in Weno is a low impact activity except for when transmission poles are located in private land in which case there may be resettlement impacts to address. The hybrid mini-grids for Chuuk’s outer islands of Satowan and Udot will generate minimum environmental impacts during construction. For both islands, distribution networks are expected 7 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) to traverse private lands thus there may be losses of assets and crops to consider, and environmental disturbance during trenching for underground cabling. There is strong community support for the Project in both islands and voluntary use of land has been expressed. Where there are resettlement impacts, appropriate compensation in accordance with WB 4.12 Involuntary Resettlement will be provided. Used oil to be generated by new and replacement gensets and other equipment will add to the worsening accumulation of used/waste oils in all four States for which there is no immediate prospect for reuse and or recycling. There is a SPREP coordinated initiative for used oil collection and offshore disposal that, if eventuate, will remove an unknown quantity of stored waste oil from PUC. SEDAP has an opportunity to contribute via this SPREP initiative to reducing waste oil stored in FSM. Full ESMP for various activities are given in Annexes A, B, and C. ESMP Implementation Arrangements The Project Steering Committee (PSC) will be responsible for providing oversight and strategic guidance for Project implementation with the Energy Division of the Department of Resources & Development (ED/DoRD) responsible for overall project preparation and implementation. Within the ED/DoRD, a Project Implementation Unit (PIU) will be established and will have a Safeguards Specialist amongst its personnel. This specialist will be directly tasked with overseeing the implementation of the ESMP (and other safeguards instruments) and will contribute to building capacity within State Utilities and environmental management authorities to support continuing ESMP implementation and compliance. The Safeguards Specialist is a personnel of the Centralized Implementation Unit (CIU) of the Department of Finance and will support safeguards implementation for SEDAP as well as other IDA funded projects. Other key ESMP implementers are contractors and suppliers who shall have the ESMP as part of their contract, and will be legally bounded to implementing those tasks of the ESMP assigned to them. Integration of ESMP It is the responsibility of the Project Implementation Unit under the FSM ERD/CIU, to ensure that the SEDAP ESMP is fully integrated into the Project. The ESMP shall form part of any bid documentation for physical works, and it shall be the CIU’s responsibility to ensure that the technical requirements and data sheets of Project bid documentation is subject to review against this ESMP to ensure that all appropriate safeguard measures are captured at the bid stage. It is further the responsibility of the ERD/CIU to ensure that this ESMP is considered in the review of any Terms of Reference for Technical Assistance developed for the Project. The safeguard requirements for any design or supervision of the Project will be fully integrated into TOR to ensure that all safeguard responsibilities allocated within the ESMP are realized at the tender stage. In this way, the ESMP will be fully integrated within the Project so that the required measures will be fully appreciated by all responsible parties and successful implementation will be achieved. 8 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Disclosure As part of the requirements of FSM law and World Bank policy, the ESMP will be disclosed for stakeholder review and comment by FSM ERD/DoFA-CIU as the agency responsible for project preparation. A newspaper advertisement will alert stakeholders and the public in general to the disclosure of the instruments. Likewise, ERD and CIU will ensure that several copies of all prepared safeguard instruments are available locally at the ERD office, CIU office and offices of the all four State Utilities. The ESMP should also be made easily accessible to any interested local group and NGOs. The ESMP is a dynamic document and will be reviewed, updated and approved as necessary throughout the implementation of the Project. For each approved updated version of this ESMP, the ERD/CIU and State Utilities will be responsible for disclosure through the above channels. 1. Project Description 1.1 Background and Rationale 1. The GoFSM formally requested a US$30-million equivalent grant to create the SEDAP and support the implementation of priorities identified in part by the FSM Energy Master Plan Final report prepared through the first WB funded FSM project, the Energy Sector Development Project (ESDP) and published in April 2018. In February 2018 the World Bank (WB) approved the Concept Note for the preparation of the SEDAP. ESDP commenced implementation in 2014 and will end in 30 September, 2019. 2. The World Bank is one of the key partners supporting the GoFSM in its efforts to establish conditions for sustainable and reliable energy provision for economic growth and poverty alleviation. The country expressed the desire for the Bank to remain engaged in the energy sector, following on from ESDP to help the country achieve its long-term sector goals. Consequently, SEDAP will mainly follow recommendations from the four State Master Plans (produced by ESDP) which identified various investments and options to be undertaken to increase electricity access in FSM and improve electricity service quality in each state. 3. The proposed SEDAP will focus on: (i) improving PUC performance, including solutions for the thermal power plant and implementation of grid enhancement in the state of Pohnpei and unsecured waste oil storage in PUC (ii) increasing access and RE, particularly in the state of Chuuk; (iii) enabling RE solutions in Yap and Kosrae; (iv) providing technical assistance and support to improve sector governance, regulatory framework, accountability, financial performance, hiring, training and retention strategy for workforce development, facilitation of private sector participation, development of potential pipeline access and renewable energy projects; and (v) targeting sustainability through studies, assessments and a program to disseminate improved cookstoves to mitigate health issues related to air pollution. 1.2 Project Development Objectives 4. The SEDAP’s Development Objectives are: (i) to improve the reliability of electricity supply; (ii) expand access to electricity and (iii) scale-up renewable energy generation in the project areas. . 1.3 Project Components 9 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 5. The project will comprise five components listed in Table 6 with their respective budget allocation (including contingencies): Table 1: Project Components and Budget Budget # Component US$ million 1 Improving Reliability of Electricity Supply in Pohnpei 12 2 Expanding Access to Electricity in Chuuk 3 3 Scaling-up Renewable Energy Generation in Chuuk, Yap 10 and Kosrae 4 Institutional Strengthening and Capacity Building in the 2 Energy Sector 5 Technical Assistance and Project Management 3 TOTAL 30 6. Component 1: Improving Reliability of Electricity Supply in Pohnpei (IDA US$12 million). This component will address PUC’s challenges with insufficient available generation capacity, which is way below the installed capacity, to stably cover peak demand, and unscheduled shutdowns of power supply and unsecure waste oil storage. The component will finance (i) medium speed diesel gensets of about 7.5 MW total, which will serve base load and provide appropriate redundancy; (ii) consultancy work for feasibility studies and supervision; (iii) associated grid facilities in Pohnpei to improve the operational performance and generation capacity of PUC; (iv) waste oil storage tank and spill containment (v) removal of obsolete generation equipment and (v) electromechanical and electronic equipment, such as a power system SCADA, measuring, monitoring, and protection devices, and converters to help PUC improve its operational performance. 7. Component 2: Expanding Access to Electricity in Chuuk (IDA US$3 million). This component will support CPUC to expand access to electricity in Chuuk, where the access rate is only 27% due to the remoteness of several islands. Specifically, this component will finance: (i) the construction of a mini-grid system on the islands of Udot and network expansion on the island of Satawan; (ii) the installation of several solar home systems on the islands of Weno, and (iii) consultancy work for feasibility studies and supervision. Udot, Satawan and Weno are prioritized based on population, needs, cost-effectiveness and other donors’ programs. 8. Component 3: Scaling-up Renewable Energy Generation in Chuuk, Yap and Kosrae (IDA US$10 million). This component will support CPUC to install the state first utility-scale solar power plant to reduce fuel cost of diesel-based power generation and support CPUC in access expansion on the outer islands. The component will also support YSPSC and KUA to significantly mitigate the curtailment of the existing RE output and enable the integration of more variable RE through storage capacity and high speed gensets. 9. The component will finance (i) a 2 MW Solar PV power plant in Weno on site(s) not yet identified (and covered under the Project ESMF); (ii) the installation of about 2 MWh1 of battery 1 KUA has already experienced the curtailment of solar power, but has an intention to overcome this issue and scale up renewable energy. The battery size will be designed to accommodate the existing solar and the foreseeable future solar. The size will further be refined after detailed study is completed. 10 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) capacity for KUA, and (iii) the installation of an 830kW2 high speed genset in the existing diesel power plant in Yap. For each of these investments, the component will also finance consultancy work for feasibility studies and for supervision during the project implementation. 10. Component 4: Institutional Strengthening and Capacity Building in the Energy Sector(IDA US$2 million). This component is designed to improve sector governance and financial performance, achieve self-sustainability, and PUC’s proper asset maintenance strategy and will include the following three sub-components: a) Sub-component 4.1: Sector Governance: This sub-component will support: a) PUC’s management structure and capacity to enhance O&M and corporate functions; it may also include the signature, implementation and monitoring of a Performance Management Contract (PMC)3; and b) FSM to advance appropriate solutions through analytical work and TA in various areas. A preliminary identification of potential areas include: (i) instruments to create an institutional, legal, and regulatory framework conducive to a self-sustained sector; (ii) assessment of the private sector’s readiness for private-public partnerships instead of the current public-sector supply approach in order to enable solution to maximize finance for development for future projects; (iii) assessments for competitive and gender neutral selection of key management positions and the participation of independent administrators in Board, (iv) a collaboration program with local schools, colleges and media, aimed at increasing the numbers of female candidates who apply for technical vocational roles, and (v) utility financial recovery plans, if needed. b) Sub-component 4.2: Efficient Clean Cookstoves. This sub-component will finance: (i) a detailed household survey assessment of the challenges and opportunities for intervention in selected islands of FSM to address health (gender disaggregated), environmental, livelihood, gender and climate change issues, (ii) awareness campaign through social mobilization to ensure that potential users are aware of the fuel-saving and health benefits associated with clean cooking, and potentially (iii) cooking demonstration workshops using different type of cookstoves and fuels to test consumer preferences and willingness to acquire the stove, and (iv) definition of broad lines and components of a large scale intervention on household energy for cooking in the FSM, which consider women’s health benefits and employment opportunities. 11. Component 5: Technical Assistance and Project Management (IDA US$3 million). This component will finance (i) contract staffing for the project, including a project manager, consultancies and non-consultancies, office and other equipment, travel and operational costs, and training and workshops, (ii) recruitment of a full-time Energy Adviser (EA) to assist and support the Secretary of Resources and Development (SoR&D) on energy sector policy matters and development strategy, and (iii) support utilities on respective activities implementation, including provision of support on coordination, Monitoring and Evaluation (M&E) and reporting. 12. The project implementing agency is ED/DNR&D, with support provided by the CIU in accordance with the provisions of a Memorandum of Understanding to be entered between the organizations that will define roles and responsibilities of each entity. For smoothness of implementation, PUC will be the focal point of component 1, CPUC the focal point of component 2, YSPSC and KUA the focal points of sub-component 3.1 and sub-component 3.2 respectively, and ED/DoR&D the focal point for components 4 & 5. 2 YSPSC has recently installed wind turbines and has a plan to install further renewable. However, this could cause some difficulties in frequency control. The Master Plan suggests adding 830kW scale high speed genset for the stable power supply. 3 a Performance Management Contract (PMC), agreed by relevant parties (PUC, Pohnpei state and others) to be implemented and monitored based on the recommendations provided by the Graduates School USA’s report on PUC. 11 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Table 2: Project Implementation Roles Focal Point Project Components Support Entities PUC, CPUC, YSPSC, KUA, ED/DoR&D Components 4 & 5 PIU, CIU PUC Component 1 PIU, CIU CPUC Component 2 PIU, CIU YSPSC Sub-component 3.2 PIU, CIU KUA Sub-component 3.1 PIU, CIU 13. The focal point role is to ensure that the Project Implementation Unit (PIU), the CIU, consultants, and contractors receive the necessary support to successfully implement project activities. This includes, but is not limited to, drafting/reviewing specifications, reviewing reports, participating in meetings, and generally ensuring all necessary support is made available. 2. Current Conditions 14. FSM is heavily dependent on imported petroleum fuels which make the country highly vulnerable to petroleum price volatility and price shocks. FSM currently spends about US$40 million annually on imported fuels. This amount represents over 50 percent of the aggregate sectoral grants that the nation receives from the US under the Compact II agreement, and nearly __ percent of nominal GDP, making energy the most costly sector of its fragile economy. Mobil Oil Micronesia, Inc. (MOMI) supplies petroleum fuels. In August 2007, both parties reached an agreement to transfer MOMI assets to the FSM Government and for MOMI to maintain fuel supply for a transitional five-year period. FSM Petroleum Corporation (PetroCorp, now trading under the name “Vital”) was established by Congress in September 2007 as a wholly government-owned enterprise to operate the nation’s fuel storage and wholesale distribution facilities in the four states. The most recent petroleum supply contract with MOMI became effective on September 1, 2013 for a period of five years, with an option to renew. 15. As in other Pacific Island Countries (PICs), petroleum fuels are used in FSM largely for electricity generation and transportation. Fuel in transportation is used mostly for marine services, because vehicle transportation is modest due to FSM’s small land mass. At present, electricity generation in the four states is based almost completely on fossil fuels. This contributes to the high average residential expenditure on energy as a percentage of annual household income. In 2005, it amounted to 19 percent of household income, higher than both the average of 18.4 percent and the median of 17.6 percent when compared with 12 other PICs with available data.2 Within FSM, this figure ranged from 17 percent (Kosrae) to 21 percent (Yap). 16. About 55 percent of all households in FSM have some form of electrification, although these rates vary widely among states, with Kosrae having a 98 percent electrification rate and Chuuk only 26 percent. Electricity use in FSM is divided as follows: residential (39 percent), commercial and industrial (22 percent), government (17 percent), utilities (10 percent), and system losses (12 percent). The largest amount of electricity is used for air conditioning (especially in the government sector) and lighting. 17. Energy demand in rural areas generally reflects basic needs, such as lighting (often with kerosene, oil lamps and flashlights) and cooking (wood or other biomass, such as coconut husk, 12 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) and some kerosene, although its consumption has dropped due to cost increases). Problems typically associated with a lack of electricity access are also present in FSM. These include health problems caused by indoor air pollution, and environmental problems such as deforestation and land degradation. 18. It is estimated that about 42 percent of FSM’s total population3 is affected by household indoor air pollution. Only 10.6 percent of the population uses electricity for cooking; most use kerosene (44.1 percent) or wood (41.5 percent) for cooking, while a few people use gas (3.6 percent) and other fuels (0.2 percent). Women and children are often responsible for most household chores, including cooking and fuel collection. This places them at greater health risks due to poor ventilation, increased drudgery, time loss, etc. Consequently, women’s health and time loss are particularly affected by poor access to electricity and to clean, modern fuels for cooking. No specific statistical study has been conducted on energy-use habits and expenditures in rural places in FSM. However, based on a survey conducted in 2009, the estimated average energy expenditure is between US$15 to US$35 per month per household (in the outer islands it is around US$15, depending on availability, while in the rural areas on the main islands the average is US$35). 4 19. Each of the four island states has a state-owned power utility, which is responsible for generation, transmission and distribution, has its own tariff structure, and is regulated by the Utility Board at the state level. This Board, appointed by the Governor and confirmed by the state legislature, governs these utilities. The Board has the power to approve and adjust tariffs (as proposed by the utility’s management) upon the presentation of a tariff review proposal. At present, tariffs cover basic operation and maintenance (O&M) costs at different levels in each state, and some include a fuel price pass-through (see Annex 6 for a detailed description of the electricity sector in each state). None of the utilities is able to generate enough revenue to support large-scale infrastructure rehabilitation or new investments in conventional or renewable energy. 2.1 Government / Energy Sector Policy 20. FSM’ National Vision Statement for Energy is to “improve the life and livelihood of all FSM residents with affordable, reliable and environmentally sound energy”. The National Energy Policy 2012 sets the overarching objectives for the energy sector in FSM. The six main targets are :  Obtain 30 percent of energy supply from Renewable Energy (RE) by 2020  Increase overall Energy Efficiency (EE) by 50 percent by 2020  Ensure a safe, reliable, and affordable supply of conventional energy  Electrify 80 percent of rural public facilities by 2015  Electrify 90 percent of rural households by 2020  Enhance the supply side EE of the FSM utilities by 20 percent by 2015. 21. In addition, FSM’s Intended Nationally-Determined Contribution (INDC) commits the country to unconditionally reduce its GHG emissions by 28 percent by 2025, compared to 2000. It also has a conditional target to reduce emissions by up to 35 percent in 2025, compared to 2000 (subject to the availability of additional financial, technical, and capacity building support from the international community). 22. The new State Energy Master Plans and National Energy Master Plan identify priority investments required to achieve the national vision and the NEP targets in the electricity sector 13 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) over the next 20 years, and how the investments will be financed and implemented. The investments constituting SEDAP are drawn from these Master Plans. 2.2. Existing Environmental and Social Risks Cumulative impact – stored waste oil 23. The operation of diesel based generators generates waste oil and used lubricants that are extracted during regular maintenance and stored in sealed tanks and containers in a safe distance away from power plants. While the intention was to maximize waste oil reuse, and or recycling, this has not been possible in part due to prohibitive economic conditions that make local recycling unviable. Local demand for waste oil for boat fuel is reported in some states but demand is low and irregular. The lack of reuse, recycle or disposal invariably means increasing volumes accumulating into the immediate future with no sign of reduction. The risk of accidental spill, leakage or accidental combustion exists. And while the onus has been on safe storage, it is critical that an avenue for their removal for disposal offshore in a licensed facility is explored. SEDAP will contribute to this cumulative impact with the funding of additional generators. On the other hand it is contributing to the safe storage of used oil in Pohnpei with the funding of a new and more secure waste oil storage tank. Soil and water contamination at Utility facilities In some utilities compounds, there are visible signs of leaked and or spilled waste oil; drums of waste oils not well sheltered from the elements and the risk of combustion, accidental spills and leakages exist. Leaks into waterways have serious implications for downstream populations and aquatic environments. Hazardous solid wastes old genset bodies Old generators and other decommissioned equipment bodies in Utility compounds need safe disposal but there is no licensed facility in the country. Most generators are stripped of reusable alloys and are rusting, and ‘stored’ in exposed open-air conditions. Land scarcity Land is limited in FSM and is a constraint to investments such as a large scale solar power plant. The option of roof-tops is largely exploited already using government owned buildings. As a result, there is pressure to use aquatic areas and ecologically sensitive ecosystems including inlet lagoons, marshlands and swamps, all of which are considered costly and technically difficult. There are also severe environmental impacts involved. Willingness to pay While there is keenness to extend electrification to rural areas including outer islands, especially in Chuuk, affordability and willing-to-pay are issues and a risk for Utilities to consider. 3. Legal Framework and Safeguard Policies 30. SEDAP activities trigger the following World Bank safeguard policies: OP4.01 Environmental Assessment, OP4.04 Natural Habitats, OP4.10 Indigenous Peoples and OP4.12 Involuntary Resettlement. Corresponding laws, regulations and policies of the FSM, will also come into play. Detailed discussion of applicable FSM laws, regulations and policies and WB Safeguards 14 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Policies are discussed hereunder. 3.1 Applicable FSM Laws, Regulations and Policies 3.1.1. FSM Environment Protection Act (revised Code 2014) 31. The Environment Protection Act is a national government declaration of on-going commitment, in cooperation with State and municipal governments, and other concerned public and private organizations, to use all practicable means and measures, including financial and technical assistance, in a manner calculated to foster and promote the general welfare, to create and maintain conditions under which the people of FSM man and nature can exist in productive harmony, and fulfil the social, economic, and other requirements of present and future generations of the Federated States of Micronesia. 32. The Act declares that it is the continuing responsibility of the Federated States of Micronesia to use all practicable means, consistent with other essential considerations of national policy, to improve and coordinate governmental plans, functions, programs, and resources to the end that the inhabitants of the Federated States of Micronesia may: (a) fulfil the responsibilities for each generation as trustee of the environment for succeeding generations; (b) assure for all Micronesians safe, healthful, productive, and aesthetical and culturally pleasing surroundings; (c) attain the widest range of beneficial uses of the environment without degradation, risk to health or safety, or other undesirable or unintended consequences; and (d) preserve important historic, cultural, and natural aspects of our Micronesian heritage, and maintain, wherever possible, an environment which supports diversity and variety of individual choice. 33. The effort to protect and preserve the environment will be carried forward in close cooperation with the States in the formulation of policy, enforcement, and other activities. 34. The Federated States of Micronesia recognizes that each person has a responsibility to contribute to the preservation and enhancement of the environment. Chapter 3 Section 302 of the EIA Act states that - 1) Any person, prior to taking any action that may significantly affect the quality of the environment within the Exclusive Economic Zone of the Federated States of Micronesia, or within the boundaries of the National Capital Complex at Palikir, must submit an environmental impact statement to the Director, in accordance with regulations established by the Director. (2) The environmental impact statements required by subsection (1) of this section are public documents, … . 3.1.2. FSM Environmental Impact Assessment Regulations 35. The purpose of the EIA regulations is to implement Section 13 of the Federated States of Micronesia Environmental Protection Act by establishing standard procedures for preparation of an environmental impact assessment statement prior to taking or funding any major action that may significantly affect the quality of the human environment. 36. Part I (l) defines Project Proponents as the FSM National Government or its agencies or the recipient of funding from the FSM National Government or its agencies, that proposes to undertake any major action significantly affecting the quality of the human environment. Part II (2.1) requires project proponents “ … to conducts an EIA itself or contracts for its 15 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) conduct, and is responsible entirely for its adequacy, and timely completion.” 37. Part II (2.2) empowers the Secretary of the Department of Human Resources to receive EIA Statements and to review them for compliance with 25 F.S.M.C. 702 and these regulations in terms of format, adequacy of information and objectivity. The Secretary shall only authorize commencement of projects or release of funds for the proposed project if he determines that the EIA Statement is sufficient. No permits shall be issued until approval of the EIA Statement by the Secretary. 38. Part III sets out the EIA process. Part IV elaborates on this process which is a two-step assessment process with the first step being the submission of an Initial Assessment using a checklist template. If following evaluation there are potentially severe environmental impacts, then a Comprehensive EIA is required. The contents of the Comprehensive EIA are set out in Part V. 39. The Environmental Impact Assessment (EIA) process is intended to help the general public and government officials make decisions with the understanding of the environmental consequences of their decisions, and take actions consistent with the goal of protecting, restoring, and enhancing the environment. These regulations provide the directions to achieve this purpose. In addition, these regulations are designed to: (a) Integrate the EIA process into early planning of projects to insure timely consideration of environmental factors and to avoid delays; and (b) Identify at an early stage the significant environmental issues requiring further study and de-emphasize insignificant issues, thereby defining the scope of the EIA. 3.1.3. FSM Earthmoving Regulations 1988 40. These regulations aim at ensuring effective erosion and sedimentation control associated with all earthmoving activities. It applies to all earthmoving activities defined as follows – Ongoing activities/operations of a continuous nature such as dredging, quarrying, construction operations, and all new projects. 41. The term "Earthmoving" is defined as “…any construction or other activity which disturbs or alters the surface of the land, a coral reef or bottom of a lagoon, including, but not limited to, excavations, dredging, embankments, land reclamation in a lagoon, land development, subdivision development, mineral extraction, ocean disposal, and the moving, depositing or storing of soil, rock, coral, or earth. 42. Part 2 Erosion and Sedimentation Control sets forth the general and specific requirements for compliance which should be set out in an Erosion and Sedimentation Control Plan approved by the Secretary, Department of Human Resources. 43. Part 3 Permits sets forth the steps for preparing and lodging an application for an Earthmoving Permit, and the required documentation (i.e. Erosion and Sedimentation Control Plan, and others as may be required by the Secretary. 44. The four states of FSM each have their respective state level regulation elaborating on the National EIA Regulation and stipulating their specific requirements. The state level EIA Regulations are briefly discussed below. 16 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 3.1.4. FSM National Energy Policy 45. The FSM National Energy Policy is discussed earlier and is referred to here to highlight its relevance as part of the underpinning legal framework for the ESMP. 3.1.5. Kosrae State Development Regulation 2014 46. The purpose of this (among others) regulation is to implement Title 7, Chapter 4 of the Kosrae Code by establishing The Environmental Impact Assessment ("EIA") process intended to help the general public and government officials make decisions “…with the understanding of the environmental consequences of their decisions, and take actions consistent with the goal of protecting, restoring, and enhancing the environment. In addition, these regulations are intended to: (a) Integrate the EIA process into the early planning of projects to insure timely consideration of environmental factors in order to avoid delays; and (b) Identify at an early stage the significant environmental issues requiring further study and de-emphasize insignificant issues, thereby defining the scope of the Environmental Impact Statement ("EIS").” 47. The Regulation defines "Development project" to mean the construction, alteration, movement, fill, removal, disposal or any other modification to the land or coastal areas. A development project can include, but is not limited to the installation, placing, or building of surface structures, land reclamation, navigation channels, harbors, utility lines, piers, shopping centers, clearing land, causeways, gold courses, apartment complexes, hotels, schools, roads, parking areas, or any other similar activity. It also defines "Earthmoving" to mean any construction or other activity which disturbs or alters the surface of the land, a coral reef or bottom of a lagoon, including, but not limited to excavations, dredging, embankments, land reclamation in a lagoon, land development, subdivision development, mineral extraction, ocean disposal, and the moving, depositing or storing of soil, rock, coral or earth. 48. Section under Part III sets forth a Development Review Permit Process which among other things, requires the developer to conduct initial consultation with the KIRMA to explained the planned development and to determine if a Development Review Permit application is necessary. If necessary, the proponent then submits an application for a Development Review Permit including an EIA Checklist (and other attachments). The review of the application will involve a determination if an Environmental Impact Statement (EIS) is necessary, depending on the Technical Advisory Committee’s (TAC) assessment of the nature and severity of the potential impacts. A Development Review Permit will be granted by the Development Review Commission (DRC) taking into consideration the recommendation of the Technical Advisory Committee who reviews the EIS. 49. The DRC also determines if (under Section 3.7) the proposal requires a public information meeting “…whenever it is reasonably foreseeable that a project will result in a significant impact to the environment. DRC will ensure that all affected persons will have the opportunity to provide input, written or oral, for the project.” 3.1.6. Chuuk State Environmental Protection Act 1994 50. The Chuuk State EPA 1994 creates and empowers the Chuuk State Environmental Protection Agency. Section 1005 defines the functions and powers of the Chuuk EPA, one of which (para f) is – “Establish and provide for the continuing administration of a permit system 17 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) whereby a permit shall be required before the discharge by any person of any pollutant in the air, lands and water or for the conduct by any person of any activity, including but not limited to, the operation, construction, expansion, alteration of any facilities;” 51. Section 1006 of the Act says “A person shall submit an environmental impact statement to the Agency, in accordance with regulations established by the Agency, prior to taking any major action which may substantially affect the quality of the environment.” 52. There are penalties for any persons who violate the Act or any permits, orders etc issued under it. The Act is not clear regarding the process of applying for a permit, and the environmental assessment requirements to support such an application. 3.1.7. Yap - Regulations for Environmental Impact Assessment, Title II, Chapter I. 1995 53. Administered by the Yap State Environmental Protection Agency (YSEPA), the Regulation for Environmental Impact Assessment (1995) implements the Yap State Environmental Quality Protection Act by establishing standard procedures for the preparation of an Environmental Impact Statement prior to any action proposed to be undertaken in Yap State that may significantly affect the quality of the human or natural environment. In addition, these regulations are designed to: (a) Integrate the EIA process into early planning of projects to ensure timely consideration of environmental factors and to avoid delays; and (b) Identify at an early stage the significant environmental issues r wiring further study thereby the,scope of the EIA. 54. The Regulation requires that all projects require a Preliminary Environmental Impact Statement (PEIS) (Part II; 2.1, 2.2) prior to and preferably early in the planning stages of the development proposal. The PEIS will comprise of the following information (a) A brief description of the project; (b) A description of the environmental setting of the project; (c) A general description of the project's technical, economic, social, health, and environmental effects; (d) The further identification of possible environmental impacts by use of the checklist provided in the Regulation under Appendix A; (e) Possible alternatives to mitigate any adverse impacts; (f) A brief description of the need for the proposed project (e.g. community benefit, environmental benefit); and (g) The name of the person or persons who prepared or participated in preparing the Preliminary EIS. 55. There are exemptions from the preparation of a Preliminary EIS for activities that “…will probably have minimal or no significant effects on the environment.” Among those exempted activities are “ (1) Operations, repairs, or maintenance of existing structures, facilities, equipment, or topographical features, involving negligible or no expansion or change of use beyond that previously existing; (2) Interior alterations involving things such as partitions, plumbing, and electrical conveyances; 56. Where the environmental impacts in the PEIS is assessed by the EPA Board to be have severe potential impacts, the proponent is required to prepare a more detailed environmental 18 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) assessment report (Draft EIS) which will be reviewed and commented on by the EPA Board and others including the public, and these comments are send to the Proponent for review and incorporation into the Final EIS. 57. A process of public consultation and review of the Draft EIS is also provided in the Regulation (Section 3.4) with all written comments to be received by EPA after a specified period. The EPA Board makes a determination whether or not to approve the proposal, with or without conditions, or to decline , within 30 days of submission of the finalized EIS. 3.2 World Bank Safeguard Policies 58. Three WB Safeguards Policies are triggered and considered applicable to SEDAP. These are identified in the Table _ and elaborated on further below. Table 3: WB Safeguards Policies Triggered by the Project WB Safeguards Policies Yes No OP/BP 4.01 Environmental Assessment ✔ Performance Standards for Private Sector ✔ Activities OP/BP 4.04 Natural Habitats ✔ OP/BP 4.36 Forests ✔ OP 4.09 Pest Management ✔ OP/BP 4.11 Physical Cultural Resources ✔ OP/BP 4.10 Indigenous Peoples ✔ OP/BP 4.12 Involuntary Resettlement ✔ OP/BP 4.37 Safety of Dams ✔ OP/BP 7.50 Projects on International ✔ Waterways OP/BP 7.6 Projects in Disputed Areas ✔ 3.2.1. Environmental Assessment (OP/BP 4.01) 59. This policy provides the requirements and procedures for the environmental assessment of the Bank’s lending operations. Inter alia, it requires (i) detailed qualitative and quantitative analysis to determine project impacts, (ii) determination of tangible measures to prevent, minimize, mitigate or compensate for these adverse impacts, (iii) public consultation and disclosure as part of the Environmental Assessment (EA)3 process and (iv) requires that this ESMP prescribes the set of mitigation, monitoring and institutional measures to be implemented during design, construction, operation of maintenance phases of the project. 3.2.2 Natural Habitats (OP/BP 4.04) 59-1. The conservation of natural habitats, like other measures that protect and enhance the environment, is essential for long term sustainable development. The Bank therefore supports the protection, maintenance, and rehabilitation of natural habitats and their functions in its economic and sector work, project financing, and policy dialogue. The Bank supports, and expects the Borrowers to apply, a precautionary approach to natural resource management to ensure opportunities for environmentally sustainable development. 19 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 3.2.3. Physical Cultural Resources (OP/BP 4.11) 59-2. This policy addresses physical cultural resources, which are defined as movable or immovable objects, sites, structures, groups of structures, and natural features and landscapes that have archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Physical cultural resources (PCR) may be located in urban or rural settings, and may be above or below ground, or under water. Their cultural interest may be at the local, provincial or national level, or within the international community. 59-3. Physical cultural resources are important as sources of valuable scientific and historical information, as assets for economic and social development, and as integral parts of a people’s cultural identity and practices. 3.2.4. Indigenous Peoples (OP4.10) 60. Indigenous Peoples policy provides guidance to ensure that the indigenous people benefit from development projects. It requires the Government to engage in a process of free, prior and informed consultations with indigenous peoples, as described by the policy in situations where indigenous peoples are present in, or have collective attachment to, the project area. 61. Most of the population of the Federated State of Micronesia is indigenous, in the sense of having an ancestral attachment to their land, which is still important in the livelihoods of the 78% who are rural dwellers. This reliance on natural resources, and both customary and legal rights are recognized under Federal and State Constitutions, and will be taken into account in the ESMP and Resettlement Policy Framework (RPF). Social assessment for each State will identify any indigenous peoples’ issues that are not addressed under policy governing involuntary resettlement (see OP4.12 below). 3.2.2. Involuntary Resettlement (OP4.12) 62. The Involuntary Resettlement policy addresses direct economic and social impacts from project activities that may cause involuntary taking of land, permanently and or temporarily, resulting in (i) relocation or loss of shelter, (ii) loss of assets or access to assets or (iii) loss of income sources and or sources of livelihoods. Projects may also lead to involuntary restriction of public access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of the displaced persons. 63. While minimizing resettlement impacts by avoiding the use of private lands is a basic principle in project design, SEDAP activities such as the extension to the distribution network in Weno, as well as distribution networks for the hybrid mini-grids for Satowan and Udot, may affect private lands, crops and other assets. Consequently any resulting land taking and other resettlement impacts will be addressed in accordance with the requirements of the WB OP 4.12 Involuntary Resettlement, as set out and elaborated in the Resettlement Policy Framework (RPF). 4. Environmental and Social Conditions 4.1. Environmental Context - General 64. FSM is comprised of four states, from east to west; Kosrae, Pohnpei, Chuuk, and Yap (Figure 1). Each island or group has its own language, customs, local government, and traditional 20 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) system for managing marine resources. The FSM has both high islands and atolls, and islanders have a strong dependence on coral reefs and marine resources, both economically and culturally. The islands support three basic reef formations: fringing reefs, barrier reefs, and atolls, which correspond to the stage of reef development at each island4. 65. The nation is home to some of the most biologically diverse forests and coral reefs in the world. The proximity of Micronesia to the Indo-Malay region and the relative nearness between the islands themselves enabled the high islands and reefs to act as bridges for the migration of terrestrial and marine species. The distance between islands also separated individual populations, causing high levels of endemism5. 66. FSM is vulnerable to the effects of climate change. Predicted higher sea levels will affect coastal resources and infrastructure, and the atoll islands are particularly vulnerable to salt water intrusion and coastal erosion. More variable and extreme winds / storms, and higher temperatures are also predicted6, which will affect coral habitats and agriculture, and may also affect biodiversity. 67. FSM’s forests covers 89% of its total land area of 161,917 acres with the remaining 11% classified as urban (3% and including roads) and 9% non-forest vegetation including savannah and agricultural land. Forests are classified into upland forest, palm forest, disturbed forests, mangrove forests and agroforests. Each state in the FSM has extensive forest cover, although on the low atoll islands, and the littoral slopes of the high islands, the forest cover is better described as an agro-forestry complex with a scattered secondary forest on long-fallow within the traditional gardening system7. 68. Scattered use of forest resources occur across all states. Timber is cut for subsistence farmsteads for construction and firewood. Mangrove timber is used for handicrafts, and both upland and mangrove timber is used for furniture making. 69. Agriculture is the most important primary activity in the nation because of its contribution to employment, wage income, export earnings, and subsistence production. Copra remains the ubiquitous cash crop throughout the FSM. 70. Coral reef diversity and complexity is high within the reefs of the FSM and this diversity decreases in scale from west to east away from the centre of marine diversity in Southeast Asia. FSM's exclusive economic zone covers some 2.6 million square kilometres of ocean which contain the world's most productive tuna fishing grounds.7 71. Land and marine biological resources and ecosystems are at threat from deforestation, erosion and sedimentation, pollution from agricultural and urban sources, and overfishing / destructive fishing. 4 Hasurmai, M., et. al. 2008. The State of Coral Reef Ecosystems of the Federated States of Micronesia. Chapter 14 of the State of Coral Reef Ecosystems of the United States. 5 Federal and State Government. A Blueprint for Conserving the Biodiversity of the Federated States of Micronesia. 6 http://www.sprep.org/att/IRC/eCOPIES/Countries/FSM/7.pdf 7 http://www.fsmgov.org/info/natres.html 21 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 72. Conventional western approaches to conservation--government management and enforcement of large-scale conservation areas--have been ineffective due to land and marine ownership patterns, the difficulties inherent to regulating activities in extremely remote locations, and the limited capacity of government natural resource agencies5. 4.1.1. Weno Island, Chuuk 73. The vegetation of Weno Island in Chuuk is a mix of forest types organized in an imperfect series of concentric circles with mangroves in a narrow shoreline band in which Rhyzophora apiculate is dominant, followed by agroforests and plantation forests and upland forests in the centre. The main type dominating the lower slopes and coastal flats, are agroforests and plantation forests. The upland forests occupy the sparsely settled interior and hilly country. The coastline on the north, east and southern flanks are straddled by mangroves, extending inland by 100 or so meters in places. 74. The western coastal area is a stretch of marshland running north to the south and extending inland by about 1 – 1.5 km. The marshland appears relatively undisturbed except along the fringes where local residents have made attempts at backyard land reclamation, and the reclaimed areas planted with coconuts, bananas, other fruit trees and taro. Other species include ferns (Acrostichum aureum). Not much is known about the ecology and biodiversity of the marshlands but anecdotal information8 reports the presence of tilapia which the surrounding population fish on a regular basis for protein. 4.1.2. Satowan and Udot Islands/Atolls, Chuuk 75. Both Satowan and Udot islands are dominated by agroforests with Artocarpus, Terminalia, Casurina, Cocos nucifera, dominating the canopy and Musa spp, Morinda spp, more Artocarpus, Papaya, pandanus, Thespesia, Ficus, Hibiscus, Macaranga, Cananga and Horsfieldia most abundant in the sub-canopy. The undergrowth is sparse with taro, saplings of various species and ornamentals widely grown around houses and lining the road. New plantings of an introduced variety of Atrocarpus (of Samoan provenance according to local sources) are increasing seen in clearings and around houses. Artocarpus is the main traditional source of carbohydrate in the local diet, although rice is now increasingly consumed. 76. The agroforestry systems extend from the interior to the coastline except where there is no human habitation that a littoral strip featuring Ficus, Terminalia, Barringtonia, Thespesia, pandanus, Hibiscus species can be seen. Scaevola spp is dominant in the undergrowth and on the beaches. 4.2. Socio-cultural Context 77. The social assessment that follows is an overview derived from secondary sources9 to 8 Personal communications with Kembo Mida, Jr., CEO, CPUC, June 2018. 9 The most recent complete published body of census-based statistics derives from the 2000 census, reported in 2006; see http://www.spc.int/prism/country/fm/stats/. This data is used where analysis of 2010 census data is not yet to hand. Preliminary results of the 2010 Census of Population and Housing are available at the Office of Statistics, Budget & Economic Management, Overseas Development Assistance and Compact Management, http://www.sboc.fm. Some data used is from the Sample-based 2005 Household Income and Expenditure Survey (HIES). 22 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) profile the beneficiary population, inform a framework for stakeholder consultation, for incorporating socio- economic information for the ESMP and subsequent environmental planning during the designed stage of selected activities. 4.2.1. Population 78. Prior to European contact, the present-day Federated States of Micronesia were part of a group of islands whose pan-Micronesian subsistence and seafaring populations were in sporadic contact through circular migration to trade with each other, participate in ceremonies, intermarry, give and receive mutual support in times of natural and other disasters. The indigenous people of the Federated States of Micronesia, who constitute the vast majority of the population, are ethnically Micronesian, and speak distinct dialects of Austronesian languages that are part of the Malayo-Polynesian family. Though there is broad cultural similarity amongst the States, in the relative historical isolation of the islands, different customs, local practices and strategic interests have developed according to island, village, class, kinship and religious affiliations. These, rather than ethnicity or indigenous status per se, are generally the basis of differences within and between States. Most of the population is now Christian, with only 4.6% either professing another or no religion. 4.2.2. Social Organization 79. Urban population in 2010 accounted for only 22% of the total in the Federated States of Micronesia. The family and village are still central to social organization and identity. Especially on the high islands, society is stratified by descent group affiliation, title, age and land relationships, which are the traditional basis of wealth and the conspicuous generosity that is the mark of a leader. However, disease and depopulation in the colonial period eroded the powerbase of traditional leaders, which depended on a large labor-force to work lands. The coral atolls are generally more egalitarian, and place more emphasis on specialized knowledge and achievement, though age and gender are still important social markers. Churches are now focal points of community interaction, though especially in Yap, men’s houses that were formerly the centres of village power are maintained as meeting places, and uphold traditional arts and culture. 4.2.3. Land 80. In pre-colonial times, land was generally plentiful, though with higher population densities in Chuuk than in the other States. Since the dramatic decline in population due to post-contact epidemics, and the continuing overall trend to decline due to later marriage, lower birthrates and migration, population pressure has not been a large issue in the country, though ownership, use, control and inheritance of particular plots may still be locally sensitive. 81. Ownership of land and aquatic areas varies between States. In Kosrae and Pohnpei, land is both privately and State owned, while aquatic areas are managed by the State as public trusts. In Chuuk, most land and aquatic areas are privately owned and acquired through inheritance, gift or, recently, by purchase. In Yap, almost all land and aquatic areas are owned or managed by individual estates and usage is subject to traditional controls. In all states, land cannot be sold to non-citizens of the FSM, thus these land and aquatic ownership patterns greatly influence the strategies and actions required to sustainably manage the natural resources of the nation. 23 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 82. Some States have made a concerted effort to have land titles registered, and to declare unregistered land as Government land. Custom mechanisms for ascertaining land rights have played an important part in this process. In some States, Government land may be designated as Homestead land for eligible clans and individuals and could be legally allocated as replacement land if eminent domain powers were exercised in downstream projects. 4.2.4. Households and Housing Characteristics 83. Most households comprise nuclear or extended families, with around one quarter providing a home for a parent or another relative. In 2000, average household size was 6.7, with a tendency to smaller households on Yap and larger in Chuuk. Female headed households accounted overall for 18% of the total, though 27% in Yap. 84. Most homes in 2000 were single detached dwelling units. A further 9% of dwellings had an attached unit; only 2% were located in apartment blocks. Half had piped water and electricity, but only a quarter had any form of sanitary waste disposal, except in Kosrae, where over 70% enjoyed this facility. By 2010, four out of five had an improved drinking water supply, and three out of five an improved toilet facility, and household size had dropped to 6.1, an indication of the trend to depopulation. 4.2.5. Gender and Social Status 85. In 2010 the sex ratio was 103 males to 100 females. Micronesian societies are matrilineal, and inheritance of land and other assets is traditionally through women. However, the senior male of the lineage, often a woman’s older brother, is generally the manager of landed estate, and males exercise most political and economic power. The senior male decides on inheritance, which may be exercised in favor of matrilateral or patrilateral kin, within or outside the village. This ambilateral allocation of inheritance by family heads is a potential source of disagreement about land. Partly for this reason, the traditions of village exogamy and cross-cousin marriage, which tend to consolidate alliances and interests in clan land, are still a cultural preference in many areas. Women traditionally defer to men, and the sexes do not generally mix freely in social situations. 86. In the subsistence sector, traditional division of labor assigns domestic chores, and the care of infants and the elderly to women and children. Women plant, weed and harvest subsistence produce, weave mats and tend livestock while men perform the heavy agricultural labor tasks such as construction, ground-breaking, ditching and fencing. Generally, women fish and gather in the lagoons, while men fish outside reefs. In the non-subsistence economy, both sexes have new opportunities to which education and language skills are important enablers of access. 87. The Constitutions of the nation and of each individual State specifically exclude discrimination or exclusion on grounds of sex, language, national origin, ancestry, race, in most cases social status, religion and in one case dialect. FSM’s accession to the Convention for the Elimination of all forms of Discrimination Against Women (CEDAW) in September 2004 is a reaffirmation of its commitment to the principle of gender equality. 88. Recent social assessments10 found approximately 20% of households in FSM are led by females and female-led households have a lower annual average income than male-led households in Chuuk, Pohnpei and Yap. The latest available data (2013) found female-led 10 Castalia. 2018. Energy Master Plans for the Federated States of Micronesia – Social Assessment Report. 24 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) households to have a 9 percent lower income than male led households. The income gap is particularly significant in Chuuk (40 percent lower for female-led than for male-led households). This is in the context of Chuuk already having significantly lower income per households than other States. In Pohnpei and Yap the income gap is 7 percent and 10 percent respectively. 89. In Kosrae, the total income of female-led households is higher than for male-led households, but by only two percent. This may reflect a higher proportion of households with male members working outside FSM. 4.2.6. Education 90. Literacy levels are generally high. Over 95% of those 15-24 or older are literate, with women’s rates at 96% slightly higher than men’s at 94.2% in 2000. Overall, girls have higher participation rates than boys at both elementary and high school levels, though Yap, the most traditional State, features lower high school enrolment rates for girls than boys. In 2000, 11.7% of persons over 25 were college graduates. This rose to 11.8% in 2010. 91. Due to the multiplicity of indigenous languages and dialects, which though related, are not always easily mutually intelligible, English has been adopted as the sole official language, and is the medium of instruction in high schools and tertiary institutions. Good English language ability is an advantage in the employment market. In 2010, 75.9% over the age of five were literate in English, with higher levels amongst the young and those of economically active age. 4.2.7. Employment and Incomes 92. Overall, 78% of the population is rural, and subsistence farming and fishing are still the main means of livelihood. Almost half the women and two thirds of the men of economically active age participate in the labor force. One third of working men, and more than half working women (56%) are in unpaid occupations. The 2010 unemployment rate for men is 15.5%, and 17% for women. While most households engage in agricultural production and fishing (94.6% and 70.7% respectively in 2010), only around 1% produces exclusively for sale. Around 10% sells some of their production. 93. Of those aged 15 or more with cash income in 2000, 43% received wages or salaries, 21% had income from their own business, 41% received remittance income and 7% received social security or other income from Government. Public administration, education, health, social work and utilities supply accounted for just over half of paid jobs. The only other significant sector was wholesale and retail repair and supply of vehicles and household goods, which employed 13% of the work force. 94. Average household income in 2005 was $13,421. Female headed households earned over $2,000 less than the average, while foreigners (non FSM residents) earned almost $7,000 more than the average. These figures include cash and non-cash income, so are not necessarily a good indication of purchasing power for cash goods. Per capita GDP on a Purchasing Power Parity basis was estimated at US$3,165 in 2012. 5. Public Consultations to Date 95. Initial consultations conducted for the preparation of the ESMP focused on the State Utilities in all four states, and municipal governments and local community leaders in Satowan and Udot. Summary reports of these consultations are annexed. 25 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 96. Further consultations with key stakeholders have been conducted since the initial disclosure of the ESMP and other safeguards instruments (ESMF, RPF and SEP) in all four States. The consultation completed thus far is in accordance with those set forth in the Project’s Stakeholder Engagement Plan (SEP). Reports of those consultations are annexed. 6. Project Grievance Redress Mechanism (GRM) 97. Grievances are deemed most likely in relation to the impacts of project activities implemented in close proximity of publicly accessible areas such as the network extension in Weno, solar power plant in Weno, and the mini-grids in the outer islands of Satowan and Udot. However, even in activities carried out within the closed confines of State utilities fenced compounds, excessive noise, unpleasant odours, or leaks of contaminated water through waterways etc., are issues that are sensitive to the surrounding population. Public complaints and grievances pertaining to those and any other impacts require a clearly defined mechanism through which they can be expressed and be responded to, as a first step towards their mitigation or resolution. 98. The following GRM is designed to address complaints received at all sites where SEDAP activities are implemented in Pohnpei, Kosrae, Chuuk and Yap. It recognizes that complaints are either directly addressed to the Site Engineer / Construction Site Supervisor (especially for outer islands), or directly to the State Utility. Table 4: Grievance Redress Mechanism Stage Process Duration Often complaints are about nuisances on the construction Any time. site. The Aggrieved Party (AP) typically take his/her grievance to Construction Site Supervisor (CSS) who will endeavour to resolve it immediately. 1 In other cases, the Complainant takes his grievance directly to the Utility company. In such cases, he/she will be referred to the DCP. Where AP is not satisfied, the CSS will refer the AP to the Immediately if the CSS Project’s Designated Contact Person (DCP) who would be thinks the complaint is a representative of CPUC, KUA, PUC and YSPSC in each outside his ability to of the respective States. resolve. 2 For complaints that were satisfactorily resolved by the CSS, he/she will inform the DCP and the DCP will log the grievance and the actions that were taken. On receipt of the complaint, the Project DCP will endeavour Immediately after 3 to resolve it immediately. If unsuccessful, he/she then logging of grievance. notify the Utility General Manager. The Utility GM will address the complaint with 1 week. If 1 week. 4 unsuccessful, he/she will then inform the PIU (Project Manager) 26 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) The PIU, if not able to resolve the issue satisfactorily, will 4 weeks refer the matter to the next sitting of the Project Steering Committee or otherwise convene an extraordinary meeting of the PSC if in his/her assessment, the issue warrants it.. If the matter remains unresolved with the intervention of the 1 month. PSC, the PIU will then advise the complainant of his/her 5 legal options. He/She may then pursue his/her grievance with the Court which decision on the matter would be final. 27 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Figure 1: Flow Diagram showing Project level Grievance Redress Mechanism Construction Site Supervisor (CSE) Resolved Aggrieved ? Not resolved Party Designated Contact Person (DCP) within Utility ? Resolved Not resolved Utility General Manager Resolved ? Not resolved PIU Project Manager Resolved ? Not resolved Project Steering Committee Resolved ? Decision is final Court 28 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 7. Potential Environmental and Social Impacts 8.1 National Level (Positive) Impacts 99. The SEDAP will generate a range of positive and negative environmental and social impacts from the implementation of activities under Components 1, 2 and 3 in all four states. The main positive impacts are the result of the expanded electrification to Chuuks local communities in Weno and the outer islands of Satowan and Udot, and improved efficiency and reliability of supply in Pohnpei, Kosrae, Chuuk and Yap. Ready access to electricity for new consumers will have transformational impact with significant social, health, educational and economic benefits for all sectors of society including women, the elderly and children. For example, in terms of health and social impacts in particular, households that will replace cooking with wood with electricity will significantly reduce the level of indoor air pollution (IAP) in their homes11. Women and children, often responsible for most household chores including cooking and fuel collection, will likewise be freed from the daily drudgery as well as the safety and health risks associated with these activities. 100. At the state and national levels, SEDAP, following in the wake of ESDP, will improve PUC’s operational performance, expand access to electricity and increase the share of RE in Chuuk, and enable renewable energy solutions in the states of Yap and Kosrae. It will reduce FSM’s dependence on imported fossil fuels, reducing its economic vulnerability to petroleum price volatility and shocks, at the same time contributing to the combatting accelerated global climate change by reducing FSM’s overall GHG emissions. 8.2. Site Specific Impacts 8.2.1. Solar Power Installations in Weno 101. The environmental and social impacts are not known until sites for the Weno solar power plant are confirmed and assessed. 8.2.2. New and replacement gensets and ancillary equipment in Kosrae, Pohnpei and Yap Environmental Impacts 102. The new and replacement gensets and ancillary equipment will be inside existing utility facilities in Kosrae, Pohnpei and Yap thus the potential adverse environmental impacts are minimal, and readily mitigatable. The main environmental risks involve the extraction, transfer and storage of used oil from decommissioned gensets and the possibility of accidental spill during transfer to the storage containers. The expected volumes handled during such transfer and during regular maintenance are small, however, the avoidance of possible spills require effective preventative and protective measures. Social Impacts 103. The potential social impacts, given the location within securely enclosed facilities is limited to occupational health and safety hazards to which utility and contractors personnel are exposed during installation and operational phases. These include noise, vibration and emissions/fumes from diesel generators. Contractors will comply with WB/IFC standards for the mitigation of these issues accessible via http://www.ifc.org/wps/wcm/connect - refer to Table 11 Presently 42% of FSM’s population are affected by IAP from the use of solid fuels in traditional cooking stoves. 29 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 1.1.2. Small Combustion Facilities Emission Guidelines. 104. The possibility of an accidental spill from oil storage facilities including waste oil storage tanks is remote but soil and waterways contamination are likely consequences. Odour and noise during operations are nuisances if not properly kept to acceptable levels. 8.2.3. Distribution Network Extension in Weno Environmental Impacts 104. The extension of the electricity networks on the main grid in Weno will be on distribution poles aligned within the existing road easements. But, as in existing networks, some transmission poles may be located outside the easement for practical reasons. In such situations, some productive forests and fruit trees will be felled or trimmed. Previous practice in such cases involves informal agreements between the utilities and landowners on the voluntary use of land, and any losses to private assets including trees and crops. This practice is expected to continue under SEDAP but done properly in compliance with the requirements for Voluntary Land Donations under OP 4.12 Involuntary Resettlement. Social impacts 105. Occupational health and safety of contractors’ or Utility personnel and public bystanders is a concern. Other social impacts including public safety, loss of assets and crops and possible disruption to the movement of traffic and pedestrians may arise. WB/IFC Guidelines and Standards are prescribed. 8.2.4. Mini-grids in Satowan and Udot, Chuuk Environmental Impacts 106. The projected environmental impacts for hybrid mini-grid in Satowan and Udot are minimal largely because sites have been identified and conditions assessed. In Satowan, site is the elementary school and nearby partly constructed municipal building and basket ball court. In Udot, the primary school roof will carry the solar arrays with genset and other ancillary equipment in the surrounding municipal owned buildings. Thus areas earmarked for solar PV arrays are existing concrete slabs of old derelict buildings, school rooftops, and unused vacant spaces within state/municipal lands. Likewise generators and ancillary equipment (storage batteries etc) will be housed in existing buildings some of which may need minor refurbishing. Distribution networks, recommended in the Master Plan to be via underground cables, will traverse private lands. Trenching work will generate a low level of dust, erosion and surface run-off if not properly managed and minimal resettlement impacts if crops and fruit trees are affected. Consultation with local landowners is essential, for land access during construction and for maintenance once operational. A review of the network alignment during feasibility and detailed design, in consultation with local landowners is expected to avoid or minimize losses of crops and other assets. 108. The transfer to the outer islands of large containers transporting generators, storage batteries, fuel tanks, and other components of ancillary equipment will pose a major logistical challenge. Udot is extending its jetty but Satowan has no proper facilities for docking boats thus the transfer of bulk cargo from boats or barges to land will invariably cause damage to coastline and lagoon environments. Site inspections and consultations in both Satowan for this ESMP examined the few possible landing options, all of which are sites previously used for similar purposes. 30 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 109. The expected impact on local environments are considered minimal in large measure because all potential landing sites are already degraded and modified albeit there are coral regrowth and lagoon-floor flora that support fish populations that will be damaged. 8.3 Gender Based Violence (GBV) and Violence Against Children (VAC) 110. The Contractor(s) may employ expatriate workers and locals from other islands during the construction phase. The lack of employment opportunities for local people may generate resentment and may lead to disharmony and lack of local support for the Contractor. Foreign workers also pose a safety and social-cultural risk vis-à-vis issues such as gender-based violence (GBV), violence against children (VAC) and insensitivities to local culture. To address these concerns, the Contractor(s) must commit to utilising local men and women for labor where possible and upholding and enforcing an acceptable code of behaviour on all its personnel. Appropriate measures to promote cultural appreciation and understanding and locally appropriate behaviour would be required. 8.4. Laydown Areas: 111. Laydown areas will be required for the storage of Project supplies, equipment and machinery before installation, storage of solar PV modules and for Contractors’ office and other needs. The siting and design of lay-down areas for contractors (possibly including workers camps) will require consultation with local authorities and land owners. Where a workers camp is required, proper guidelines will be prescribed and plans for such facilities will be a requirement of the Contractors ESMP. 8.5. Aggregates Supply: 112. Concrete will be required for the foundations of all solar PV installations except roof tops. At this stage in the project development, it is not confirmed how much concrete will be needed, however it can be expected that concrete will be needed for foundations at the Utilities facilities, and in mini-grids. It is also expected that these foundations will need to be strong enough to support the structures during typhoons. 113. The mining of sand and aggregate from beaches and borrow sites in Satowan and Udot, will significant accelerate coastal erosion on these already vulnerable communities. Contractors will ensure aggregates and sand are not sourced locally but from EPA licensed sites on Weno or elsewhere. 8.6. Health and Safety 114. Workers engaged in the installation of new or replacement gensets are exposed to fumes, dust, noise, vibrations and hazardous substances (such as oil, diesel) that are hazardous to health. IFC/WB Guidelines prescribe the standard of PPE and other safety measures for their protection. 8.7. Cumulative Impacts 115. Waste oil extracted during regular maintenance needs to be disposed of safely if recycling and or reuse are not viable. Waste oil from the new gensets will add to a worsening pre-project situation of used oil accumulation with no viable options for reuse or recycling as a result of prohibitive economic conditions of low fuel prices and diseconomies of scale. The immediate onus for management is thus that of safe storage and protection of storage facilities from leakages into the environment. 31 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 116. Old gensets, used batteries and other decommissioned equipment are hazardous wastes left lying around in Utilities compound with no prospects for reuse or recycling. While some are stripped of reusable alloys by small scale recyclers, the rusting bodies occupy space and over time, leak hazardous chemicals into the soil. SEDAP provides an opportunity for addressing this worsening situation. 117. SEDAP involves the removal of old equipment and their disposal in a licensed offshore site. A SEDAP funded storage tank for PUC will also reduce the risk of leaks from old rusting tanks and training will be provided to PUC staff on safe handling and storage of waste oil. 118. A SPREP coordinated initiative involving the collection of hazardous waste (including used oil from Pohnpei and the Republic of Marshall Islands (RMI)) and their transport to offshore disposal facilities is in the early stages of implementation. It’s a solution that needs to be encouraged at the national political level and in appropriate regional fora to be extended to all States. Where possible, SEDAP should coordinate with SPREP in the removal of used oil, used batteries and old genset/equipment bodies from PUC. It should explore if such a collaboration can be extended to other States. SEDAP should also share financial resources and expertise with SPREP for an FSM-wide training in the safe handling and storage of waste oil, involving representatives of all state utilities. Where a collaboration with SPREP is not possible, SEDAP should allocate resources to enable the removal of stored waste oil from CPUC, KUA and YAP and its shipment and disposal in a licensed off-shore facility. Table 5: Potential Impacts Project Activity Potential Impacts  Risk of site, soil and water contamination from spillage of used oil when extracted from decommissioned gensets; and Installation of when transferred to storage facilities. replacement or new diesel generators  Risk of spills of used oils while in storage and electrical and  Improved and safer storage of waste oils and mechanical lubricants in new storage tank equipment, in  Reduced amount of hazardous solid waste with the existing power removal of old/decommissioned gensets plants in Pohnpei,  Reduction in overall noise emissions from new gen Yap and Kosrae. Environmental sets compared to old gen sets  Reduction in overall emissions from new gen sets compared to old gen sets Social  Health and safety risk to workers exposed to hazardous conditions during installation and operational phases  Nuisance of noise, dust and vibration to neighbouring families.  Possible land issues arising from network line extension outside road reserve. New waste oil  Reduced risk of site, soil and water contamination from storage tank and accidental spills and potential leaks from old storage tanks. removal of old genset Environmental  Safe disposal of stored used oils and lubricants and bodies, old batteries old/decommissioned gensets from PUC facilities.  Reduced cumulative impacts - accumulation of used 32 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) oil  Safe storage of waste oil. Environment  Possible loss of productive trees, mature indigenous trees, crops and other non-land assets; Extending electricity Social  Encroachment into private land for transmission poles networks on the located outside the road reserve/easement main grid in Weno  Health and safety of workers and bystanders during construction / installation activities;  Impact on the daily movement and safety of motorists and pedestrians on public road  Increase in solid and liquid wastes;  Problems associated with waste accumulation during construction - collection, storage and disposal;  Soil compaction from heavy machinery and equipment;  Damage to coastline and lagoon environments from the movement/transfer to land site of heavy machinery and containerized capital equipment in the pre-construction and Environment construction phase.  Health hazard from exhaust fumes emitted by generator sets which contain poisonous gases like carbon monoxide that can be life threatening and result in death.  Increased in noise, dust, vibration during construction and operations.  Loss of productive trees and crops especially on distribution cable network route; Hybrid mini-grids on  Health and safety of workers and bystanders during outer islands on construction Satowan and Udot  Increased potential for gender-based violence (GBV) and violence against children (VAC) and culturally inappropriate behaviour from foreign workers during construction phase.  Health risks to locals from degraded air quality and noise during construction and operation phases. Social  Safety of local population at night with street lights.  Potential increase in household expenses in electricity tariffs  Less back-breaking work for women and children with increased use of electrical appliances for boiling water and cooking;  Increase school access to internet for educational purposes;  Students can study at night with better lights  Potential for employment opportunities for locals during and after construction. 119. Overall the environmental and social impacts are expected to be low to moderate, localized and site specific, and with measures available to ensure their effective mitigation and/or avoidance. 33 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 8. Environmental and Social Management Measures 120. To address the potential impacts associated with the SEDAP activities, a series of detailed Environmental and Social Management Plan tables are presented in Annexes 1 - 4. Within each of these plans are measures for addressing and mitigating all identified impacts at the design/pre-construction, construction and operational phases. The ESMP tables address measures for (i) the installation of gensets and ancillary equipment in Pohnpei, Kosrae and Yap, (ii) extension of the distribution network in Weno, and (iv) the hybrid mini-grids in Satowan and Udot. 121. For the planned solar power plant in Weno, because the sites are not yet known, an ESMP cannot be prepared at this point. Rather a separate ESMF has been prepared to guide the preparation of a separate ESMP for this activity once the site is confirmed and assessed. 122. Many of these measures are applicable to all project impacts such as requirements for meeting all national permitting obligations; the integration of all ESMP requirements into bid documents and contracts; the development of a Solid Waste Management Plan; training for all project staff in awareness and prevention of HIV transmission and GBV; detailed requirements for management of laydown areas; biosecurity measures, and OHS requirements for all project works. In addition to these general and project wide measures, there are some site specific and activity specific measures that are also required. 123. The requirements of the ESMP will be fully integrated into the procurement processes for technical advisory, design and installation of physical investments, and for works carried out directly by the utilities. For small works, the ESMP will constitute part of the bidding documents and will be binding on the winning bidder/Project contractor. Full compliance with the ESMP is required for all activities. The World Bank guidance on integrating EHS into the procurement progress will be followed. 9. SEDAP Institutional and Implementation Arrangements 125. The ED/DoR&D is responsible for overall project preparation and implementation. A Project Implementation Unit (PIU) will be established within the ED/DoR&D and include a Project Manager, a Project Accountant, a Procurement Specialist, a Safeguards Specialist. The Procurement Specialist, the Accountant, and the Safeguards Specialist are the CIU’s personnel and support the implementation of various IDA-financed projects, including this one. The PIU will coordinate the implementation of the project with the ED/DoR&D, the states and the utilities in a manner that is to be set forth in a Memorandum of Understanding (MoU) that outlines the roles of each organization. The MOU will clarify, inter alia, the necessary state and intra- government cooperation and support necessary for the project. 34 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 126. The Project Manager will be responsible for overall project coordination and technical guidance and will support the procurement of the various procurement packages and studies. The Project Manager will report to the Assistant Secretary (AS) at the ED/DoR&D and to the Project Steering Committee (PSC). The CIU, as the unit coordinating all related procurement and financial matters, will be responsible for the project´s fiduciary aspects. The CIU will act as the focal point for the World Bank. Additional procurement and safeguards support may also be considered, if needed. 127. A PSC will be established and comprise representatives of the Department of Finance and Administration (DoFA), R&D, the PIU, the CIU, ED/DoR&D, PUC, CPUC, YSPSC, KUA, the AMU and the state government amongst others. The PSC will oversight and provide strategic guidance during the project implementation. The Secretary of DoFA and the Secretary of R&D will co-chair the PSC. 128. A Project Implementation Manual (PIM) will be prepared and adopted not later than three (3) months after effectiveness by the PIU and the CIU, and will include: (i) institutional arrangements for day-to-day execution of the project, (ii) the procurement plan and implementation arrangements, (iii) guidance on implementation of safeguard instruments and GRM, (iv) budgeting, disbursement and financial management processes, (v) project monitoring, reporting, evaluation, and performance indicators including implementation of, and compliance with, Bank safeguard policies. 129. An engineering unit will be created within each utility to provide daily support to the implementation of the SEDAP. These units will be composed of the utility’s owner’s engineer, as well as dedicated staff who will support construction and supervision. The Project Manager will work with the engineering unit to coordinate and ensure a sound project implementation as per the role’s scope of work. Table 7 lists the units involved in implementation and supervision. Table 6. Implementation and Supervision Units Unit Staff CIU Procurement Specialist, Financial Specialist, Safeguards Specialist PIU Project Manager PUC-Engineering Owner’s Engineer, PUC-SEDAP dedicated staff Unit CPUC-Engineering Owner’s Engineer, CPUC-SEDAP dedicated staff Unit YSPSC-Engineering Owner’s Engineer, YSPSC-SEDAP dedicated staff Unit KUA-Engineering Owner’s Engineer, KUA-SEDAP dedicated staff Unit 11. SEDAP Safeguards Implementation Arrangements 11.1. Project Steering Committee: 130. The Project Steering Committee (PSC) will provide oversight and strategic guidance for Project implementation. Without limitation to the generality of the foregoing, the Project Steering Committee shall be co-chaired by the Secretary of R&D and the Secretary of Finance, and comprised of the Assistant Secretary DE/DoR&D, the Head of the CIU, the Project Manager, the 35 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) CEOs of the State Power Utilities. PSC’s other responsibilities are: (a) to ensure coordination among the state and national governments; and (b) providing guidance, data to consultants. 131. For safeguards implementation, the PSC will review and decide on grievances not resolved at the site, state utility and PIU levels in the Project’s Grievance Redress Mechanism. This is not expected to be frequent, but as a last resort prior to litigation should the aggrieved party so decides. 11.2. Energy Division/Department of Research and Development (ED/DoR&D) 132. The Energy Division of the Department of Resources & Development (ED/DoR&D) is responsible for overall project preparation and implementation including of safeguards instruments, namely ESMF, ESMP, RPF and SEP. 11.3. FSM Centralized Implementation Unit (CIU): 133. A Safeguards Specialist based in the CIU will provide support to various IDA funded projects, including SEDAP, in the implementation of the Project’s safeguards instruments including this ESMP. 11.4. Project Implementation Unit (PIU): 134. Within ED/DoR&D is the SEDAP PIU, lead by a Project Manager and a Technical Advisor. Other personnel are the Procurement Specialist, the Accountant, and the Safeguards Specialist will be based in the FSM CIU and will support the implementation of various IDA- financed projects, including this one. 135. The PIU Project Manager – acting through the CIU Safeguards Specialist - will coordinate the implementation of the project’s ESMP, ESMF, RPF and SEP with the ED/DoR&D, the State Utilities and contractors/suppliers. The specific manner with which this coordination will work will be set forth in a Memorandum of Understanding to be signed between the ED/DoR&D, CIU the States and the State utilities. 136. The MOU would create a binding contractual relationship between the national government and the utilities, and provide the national government with a legally enforceable mechanism through which it could require the utilities to fulfill their obligations for Project Implementation. 11.5 State Utilities – PUC, KUA, CPUC and YSPSC 137. The State utilities will support and assist the PIU Safeguards Specialist in implementing the ESMP, ESMF, RPF and SEP for physical investments within their respective states. Table 7 below summarises the safeguards instruments and responsible entities. Details of responsibilities are in the corresponding safeguards instruments. Table 7: Safeguards Instruments vs Responsible Agencies/Organizations No. Safeguards Instrument Responsible agencies/organizations 1 ESMF CPUC, PIU 2 ESMP PUC, KUA, YSPSC, PIU, contractor(s) 3 RPF CPUC,PIU 4 SEP PUC, KUA, YSPSC, CPUC, PIU, Contractor(s) Grievance Redress National level – PIU, PSC 5 Mechanism State level – PUC, KUA, YSPSC, CPUC, 36 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Site level - Contractor 11.6. CIU Safeguards Specialist 138. The Safeguards Specialist’s overall objective is “…to ensure compliance with the safeguards instruments, the World Bank Safeguards Policies, the World Bank Environmental and Social Framework, build capacity within FSM and more broadly to incorporate international good practice into Projects.” Her/His responsibilities will include (but not necessarily limited to) the following:  Project Management. Manage an environmental and social work plan for each project to identify resource requirements, timelines, key milestones, budgets, bottlenecks, and align tasks with the PIU work plans.  Stakeholder Engagement: Support utilities to implement the SEP.  Manage the Grievance Redress Mechanism (GRM). Jointly with the Project manager prepare detailed processes for receiving, managing, recording and closing out complaints, grievances and other project feedback. Ensure the GRM is well-publicised during all consultations and communications. Train PIU staff, State Utility staff, key stakeholders, contractors and consultants. Record all grievances and complaints from SEDAP on behalf of the PIU. Keep track of all grievance management and ensure close out within timeframes. Assist with resolving difficult grievances that cannot be resolved at the site/community and State Utility levels.  Review of ToRs, Bid Documents, and implementation of the safeguards instruments. Ensure all Project ESMP requirements and World Bank Environment, Health and Safety Guidelines are in the bid documents for civil works. Provide advice to Project Manager’s as to the capacity of shortlisted Contactors to comply with the ESMP. Provide oversight for ESMP, RAP and ESMF implementation for SEDAP physical investments in all four States by Utilities, engineers, contractors and suppliers, and supervise the technical advisory outputs with regards to safeguards issues.  Permitting. Identify and apply for environmental and other permits etc. within required timeframes to ensure no delays to project execution.  Supervise Contractor: Review and clear the Contractor’s ESMP for the Weno solar power plant and supervise the implementation of this ESMP and the Weno solar power ESMP. This may involve regular or intermittent site visits, and the training of site supervisors to undertake environmental and social monitoring and spot checks. 11.7. Contractors and Suppliers 139. All contractors and suppliers shall have the ESMP as part of their contract, and they will be required to comply with the ESMP and implement the relevant parts of the mitigation and monitoring plans. 11.8. WB Safeguards Specialists 140. The World Bank Task Team for SEDAP, including safeguards specialists, will make twice- yearly supervision missions. During missions, there will be opportunities for capacity building, training and other support and mentoring tasks for the CIU Safeguards Advisor, ED/DoR&D and State utilities personnel to better monitor and oversee ESMP implementation. 37 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) 12. Budget and Safeguard Financing 141. An indicative budget US$378,000 is required for the implementation of all safeguards instruments including this ESMP. Funds will come from SEDAP. CIU funds the Safeguards Specialist for the first two years from its Transport project budget. Funding provision for a part time Social Safeguards Specialist for the last three (3) years of the Project is included. Table 8 below provides budget details. Table 8: Indicative Safeguards Budget for SEDAP No. Details Amount (US$) 1 Part time Safeguards Specialist (last 3 years)12 108,000 2 Environmental assessment (Weno sites for solar plant). 40,000 3 Resettlement planning (Chuuk sites)13 40,000 3 Training 30,000 4 Travel (for part time SS)14 90,000 5 Monitoring and Reporting15 (incl EMA costs) 30,000 6 Stakeholder Engagement 20,000 7 Disclosure 5,000 8 GRM related costs 15,000 TOTAL US $378,000 142. All financial compensation for land taking and other resettlement measures will be the responsibility of the Government of FSM. The DoFA will ensure the required funds are available. 12 45 x consultant days per year for 3 years 13 Cost of preparing any required resettlement plans including surveying, boat fuel, and resettlement specialist. 14 3 x international economy round trips per year and DSA 15 Including EMA costs for RAP monitoring. 38 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Annex 1 Mitigation and Monitoring Plan for Gensets and Other Equipment Installation in PUC, YSPSC, and KUA Pre-Construction Phase Mitigation Plan Environmental or Pre-Construction Mitigation Actions Costs Responsible Start End social impact The ESMP will be included in the Contractors / Suppliers specification and Minor, included in CIU-SS Tender Award of contract. tendering costs preparati tender. Specific mitigation measures for the contractor / supplier shall be on General / all highlighted in the general conditions. impacts Apply for and secure permits to install gensets and battery storage, under Minor CIU-SS Design Prior to the Air Pollution Control Standards and Regulations of Pohnpei State and phase constructi similar regulations in Yap and Kosrae on starting. Ensure, through design of spill containment at the genset and / or within the building, that 100 percent of fuel and oil held within the generators can be contained and collected for removal within the footprint of the building. Soil and water contamination as Ensure generator exhaust systems are properly installed with adequate GM/PUC; Award of Moderate, included a result of leaks ventilation provided to ensure unobstructed flow of cooling and GM/CPU; Design constructi in Construction and spills ventilating air, and emissions is directed away from in habited areas. GM/KUA phase on Cost entering the GM/YSPSC tender. environment. Ensure through design of spill containment at the genset and/or within the building, that 100 percent of fuel and oil held within the generators can be contained and collected for removal within the footprint of the building. All Project staff will be trained on this plan and attendance will be recorded. 40 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Tender documents for equipment procurement will specify sound Minor, Included in CIU-SS Tender Selection attenuation as part of the package. tendering costs preparati of on preferred supplier On arrival at site, and prior to installation, the contractor will confirm Minor, Included in CIU-SS Tender Selection that the equipment meets the following standard for noise emissions. tendering costs preparati of (also stated in the tender documents). on preferred One Hour LAeq (dBA) supplier Noise (World Bank / IFC Environment, Health and Safety Guidelines for Noise Management) Receptor Daytime Night time 07:00 - 22:00 22:00 - 07:00 Residential; institutional; 55 45 educational Industrial; commercial 70 70 National or State regulations replace these where they are more stringent Reduction in air Ensure specifications for the gensets comply with the WHO Air Quality Minor CIU-SS Design Award of quality due to Guidelines. See Annex __. and the IFC / World Bank Environment, Health phase tender. emissions from and Safety Guidelines for Air Emissions and Ambient Air Quality. gensets Health and Safety The tender shall be prepared in accordance with the health and safety Minor, included in CIU-SS Tender Award of guidelines in the IFC / World Bank Environment, Health and Safety tendering costs preparati tender. Guidelines for Occupational Health and Safety. Refer to Annex 8. on 41 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) For PUC projects - Comply with the Pohnpei EPA Solid Waste Regulations, by preparing or updating the existing Hazardous Waste Management Plan. Ensure design specifications for new PUC waste oil storage tank complies with requirements of the Pohnpei EPA Hazardous Waste GM/PUC Prior to Management Plan. Minor Design operation Hazardous wastes Clean up existing storage area (not including oil) Ensure old equipment are moved during clean-up to a designated safe area prior to removal. For KUA projects, comply with KIRMA’s Solid Waste Management Plan Minor GM/KUA Design Prior to 2011 – 2015 (or subsequent updates) and the FSM National Waste operation Management Strategy 2012 – 2016. For YSPUC, comply with the relevant State regulation for hazardous Minor GM/YSPSC Design Prior to waste management. operation Construction Phase Mitigation Plan – PUC, YSPSC and KUA Environmental or Construction Mitigation Actions Costs Responsible Start End social impact Noise On arrival at site, and prior to installation, the contractor will confirm Minor, Included in Contractor / Prior to Prior to that the equipment meets the standard for noise emissions as stated in Operation Cost Supplier equipment equipment the tender documents. installation installation Non-toxic solid Metal, cardboard and plastic will be recycled, where local facilities exist. Minor, Included in Contractor / Beginning of Completi wastes (metal, construction Supplier construction on of Waste that cannot be recycled will be transported by licensed packing, etc.) contract constructi contractor to landfills permitted by State EPA. on Open burning of solid wastes, whether hazardous or non- hazardous, is not permitted. 42 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environmental or Construction Mitigation Actions Costs Responsible Start End social impact Waste oil will be reused / recycled using local service providers, Minor, included in Contractor / Beginning of Completion otherwise stored in sealed under roof containers for future offshore construction Supplier constructionof disposal in a licensed facility. contract. construction Ensure no spill or leakage when waste oil is extracted and transferred to Minor, included in Contractor / Beginning Completion the utilities storage tanks, when decommissioned generators are construction Supplier of of cons- replaced and new generators installed in their place. contract. constructi truction on Collect and store all hazardous waste in leak-proof containers prior to Minor, included in Contractor / Beginning of At disposal as per requirements of the approved Solid Waste Management installation Supplier construction completion Plan. contract. of Waste oil and constructio other hazardous n wastes Oils shall be sampled for PCB prior to disposal. Any PCB contaminated Minor, included in State utilities Beginning of Completi oils shall be stored separately and removed for treatment and disposal installation construction on of con- by permitted contractors. contract struction Contain and store all removed parts in a water tight container to Minor, included in Contractor / Beginning of Completi prevent leaching of residual oils or fuel. installation Supplier construction on of con- contract. struction Other hazardous wastes shall be separated for reuse, recycling, Minor, included in Contractor / Beginning At treatment and / or disposal by permitted contractors or as otherwise construction Supplier of completion instructed in the approved Solid Waste Management Plan. contract. constructi of con- on struction Old gensets and Old gensets and other waste equipment will have oils removed and Minor, included in GM/PUC During At other equipment other parts dismantled, and be removed from site and recycled or safely contractor’s costs GM/KUA construct completion disposed.. GM/YSPC ion of con- GM/CPUC struction 43 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environmental or Construction Mitigation Actions Costs Responsible Start End social impact Oil spill or leaks Oil sorbents and spill kits will be kept on-site to contain any spills, and Minor, included in Contractor / Beginning of At during staff shall be trained in spill procedures. construction Supplier constructioncompletion construction / contract of A berm will be placed under the engine generator skid during the installation construction replacement reducing the risk of soil contamination during a spill while the engine work is being done outside. Ensure effective containment of spilled or leaked oil from generators within the footprint of the building, prior to collection and removal to an authorized site otherwise as per EPA approved Solid Waste Management Plan. Any contaminated soils and water as a result of construction activities Moderate (if Contractor Beginning of Completi will be removed by licensed contractor and disposed to landfill sites required), included / Supplier construction on of con- Soil and water approved by the relevant State Authority. Records to be kept of the in construction struction contamination amount of material, contaminants, and destination of the waste contract material. Construction All construction workers will have site inductions by the State Utility on Included in State Beginning of Completion worker health and health and safety. operational Utility construction of con- safety procedures struction All workers will be provided with hard hats, hearing protection, high Included in Contractor Beginning of Completion visibility jackets and covered boots. construction / Supplier construction of con- contract struction All work shall be in accordance with the World Bank / IFC Environment, Health and Safety Guidelines for Occupational Health and Safety. Refer to Annex 8. Air Discharges Apply for and obtain a permit to operate gensets in accordance with the Minor State During Prior to Air Quality Regulations of Pohnpei and the relevant regulation of Kosrae. Utility construction operation 44 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Operation Phase Mitigation Plan - PUC , YSPSC and KUA Environmental or Operation Mitigation Actions Costs Responsible Start End social impact Soil and water Oil collectors and separators (such as bunds), and any storm water treatment Minor, included in State Utility During Continuous contamination from devices, will be regularly checked and maintained. Operation Cost operation oil and diesel Equipment will be regularly checked and maintained to prevent leaks. Waste oil All waste oil will be stored in leak proof containers under cover / inside a Minor, included in State Utility During Continuous building, and be collected for reuse or recycling by permitted operators. Operation Cost operation Explore and where feasible, utilize all opportunities for reuse of waste oil by licensed operators. Hazardous wastes All hazardous wastes will be stored in leak proof containers under cover / Minor, included in State Utility During Continuou (not including oil) inside a building and be transported for reuse, recycling, treatment and / or Operation Cost operation s disposal at special disposal places permitted by State EPA. For PUC projects, comply with the Pohnpei EPA Solid Waste Regulations, by implementing the hazardous waste management plan. For KUA projects, comply with KIRMA’s Waste Management Plan 2011 – 2016 or subsequent updates. For YSPSC projects, comply with appropriate EPA regulation. Complaints from the Complaints shall be recorded and followed up through the ESMF approved Minor, Included in State Utility During Continuous neighbors and local Grievance Redress Mechanism (Refer to Annex 10). Operation Cost operation community Air discharges Operate and maintain level of air emissions consistent with IFC / World Bank Minor, included in State Utility During Continuous Environment, health and Safety Guidelines for Air Emissions and Ambient Air operation cost operation Quality and state permit requirements as appropriate. 45 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environmental or Operation Mitigation Actions Costs Responsible Start End social impact Noise Noise impacts should not exceed the following Noise Level Guidelines or result Refer to monitoring State Utility During Continuous in a maximum increase in background levels of 3 dB at the nearest receptor plan Operation location off-site. One Hour LAeq (dBA) (World Bank / IFC Environment, Health and Safety Guidelines for Noise Management) Receptor Daytime Night time 07:00 - 22:00 22:00 - 07:00 Residential; institutional; 55 45 educational Industrial; commercial 70 70 National or State regulations replace these where they are more stringent Construction/Installation Phase Monitoring Plan – PUC, YSPSC, KUA Environment or Monitoring Place of Monitoring method Monitoring Cost Responsible Start End social impact parameter monitoring schedule Solid and Check service Prior to access Visual inspection Prior to granting Included in contract Contractor / The The end of hazardous waste provider’s to site to access to Supplier beginning of construction permit is valid collect waste construction site construction Noise One Hour LAeq At the location Measurements to be made Three recording Minor, included in GM/PUC The The end of (dBA) of the nearest by specialized company events to Utilities operations GM/KUA beginning of construction receptor off holding an appropriate establish a budget GM/YSPSC construction site. licence, consistent with baseline prior to international standards for operation. noise monitoring. 46 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Operation Phase Monitoring Plan – PUC, YSPSC and KUA Environment Monitoring Place of Monitoring method Monitoring Cost Responsible Start End impact parameter monitoring schedule Noise One Hour LAeq At the location Measurements to be made Within 2 weeks Minor, included in GM/PUC Start of Continuous (dBA) of the nearest by specialized company following a Operation Cost GM/KUA operation receptor off holding an appropriate complaint GM/YSPSC site. licence, consistent with international standards for noise monitoring. Air discharges As per permit As per permit As per permit As per permit Minor to moderate GM/PUC Start of Continuous GM/KUA operation GM/YSPSC Solid and Check service Prior to access Visual inspection At the time of Minor, included in GM/PUC Start of Continuous hazardous waste provider’s to site to pick up Operation Cost GM/KUA operation permit is valid collect waste GM/YSPSC 47 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Annex 2: Mitigation and Monitoring Plan for Extension of Distribution Network in Weno, Chuuk Design / Pre-Construction Phase (Weno Network Extension) Environmental or CPUC Pre-Construction Mitigation Actions Costs Responsible Start End social impact The ESMP will be included in the Contractors / Suppliers specification and Minor, included in PIU Project Tender Award of contract. tendering costs Manager preparation tender. Specific mitigation measures for the contractor / supplier shall be highlighted in and CIU the general conditions. Safeguards Advisor Consult with affected landowners on the proposed design and alignment of the Minor, included in GM/CPUC Design Prior to General / all extended distribution network. ARAP consultation phase construction impacts Cost Inform general public through public notices of impending activity and potential Minor GM/CPUC Design Prior to impacts on traffickers and pedestrians. phase construction . Apply for and secure appropriate permit as per FSM Earthmoving Regulation Minor CIU Design Prior to 1988 and Chuuk’s EPA Act 1994 Section 1005. Safeguards phase construction Specialist Health and Safety Tenders for contractors / suppliers shall be prepared in accordance with the Minor, included in CIU Tender Award of health and safety guidelines in the IFC / World Bank Environment, Health and tendering costs Safeguards preparation tender. Safety Guidelines for Occupational Health and Safety. Refer to Annex 8. Specialist Construction Phase Mitigation Plan (Weno Network Extension) Environmental or Construction Mitigation Actions Costs Responsible Start End social impact Noise Restrict work to within regular hours. No work on Sundays. Minor Contractor Prior to After / Supplier construction completio n of con- struction 48 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environmental or Construction Mitigation Actions Costs Responsible Start End social impact Metal, cardboard and plastic will be collected and recycled, where local Minor, Included in Contractor Beginning of Completion Non-toxic solid facilities exist. construction contract / Supplier construction of con- wastes (metal, struction packing, etc.) Waste that cannot be recycled will be transported by licensed contractor to landfills permitted by CEPA. Hazardous wastes including damaged transformers and batteries will be Minor, included in Contractor Beginning of Completion removed and stored in a leak-proof container approved by the State EPA construction / Supplier construction of Hazardous wastes pending reuse, recycling or otherwise disposal by permitted service providers. contract. construction All construction workers will have site inductions by CPUC on health and safety. Minor CPUC Beginning of Completio construction n of con- struction Workers health and All workers will be provided with hard hats, hearing protection, high visibility Included in Contractor Beginning of Completio safety jackets and covered boots. construction contract / Supplier construction n of con- struction All work shall be in accordance with the World Bank / IFC Environment, Health and Safety Guidelines for Occupational Health and Safety. Refer to Annex 8 Access into private Confirm prior permission for entry into private lands before entry. Minor GM-CPUC During Completio lands / installation n of con- Consult and obtain consent of landowners before felling or trimming of trees Contractor period struction within private lands. Remove all felled trees or trimmings from site unless otherwise requested by landowner. Dispose debris in sites permitted by CEPA. Operation Mitigation Plan (Weno Network Extension) Environmental or Operation Mitigation Actions Costs Responsibl Start End social impact e 49 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environmental or Operation Mitigation Actions Costs Responsibl Start End social impact e Line Maintenance Maintain distribution lines on a regulation basis including tree Minor, included in CPUC During Continuou trimming. Operation Cost operation s Consult affected private landowners in advance for permission to enter. ESHS All workers will be provided with hard hats, hearing protection, high Minor, Included in CPUC During Continuo visibility jackets and covered boots. Operation Cost operation us All work shall be in accordance with the World Bank / IFC Environment, Health and Safety Guidelines for Occupational Health and Safety. Refer to Annex 8 Use appropriate road signage to alert traffickers and public of on-going work. Complaints from Complaints shall be recorded and followed up through the Grievance Minor, Included in CPUC During Continuou the neighbors and Redress Mechanism. Operation Cost operation s local community Construction Monitoring Plan (Weno Network Extension) Environment or Monitoring Place of Monitoring method Monitoring Cost Responsible Start End social impact parameter monitoring schedule Solid and Check service Project site Visual inspection Prior to granting Included in Contractor Beginning of End of hazardous waste provider’s access to contract / Supplier construction construction permit is valid construction site Noise Regular On site. Visual inspection; Ad hoc Minor, included CPUC Beginning of End of working hours responses to public in operation cost construction construction and Sunday reporting / complaints bans 50 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environment or Monitoring Place of Monitoring method Monitoring Cost Responsible Start End social impact parameter monitoring schedule Public safety Complaints Complaints Consultations with local Ad hoc Minor, included in CPUC Beginning of End of register register people; local media reports operation cost construction construction Operation Monitoring Plan (Weno Network Extension) Environment impact Monitoring Place of Monitoring method Monitoring Cost CPUC Start End parameter monitoring schedule Workers and Public Complaints Complaints Consultations with local Ad hoc; in Minor, included in CPUC Start of Continuous safety register register people; local media reports response to Operation Cost operation public reports World Bank / IFC On site Site visits / visual inspection Environment, Health and Safety Guidelines for Occupational Health and Safety Solid and hazardous Check service Prior to access Visual inspection Prior to granting Minor, included in CPUC Start of Continuous waste (damaged provider’s to site to access to site Operation Cost operation transformers etc) permit is valid collect waste Best Practice On site Visual inspection Ad hoc; in Minor, included in CPUC Start of Continuous response to Operation Cost operation public reports 51 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Annex 3 - Mitigation and Monitoring Plan for Mini Grids on Satowan and Udot Islands, Chuuk Pre-Construction Phase Mitigation Plan Environmental or Chuuk Pre-Construction Mitigation Actions Costs Responsible Start End social impact The ESMP will be included in the Contractors / Suppliers specification and Minor, included in CPUC Tender Award of contract. tendering costs preparatio tender. Specific mitigation measures for the contractor / supplier shall be highlighted in n the general conditions. General / all Apply for and secure permits to construct /install gensets, and to construct Minor CPUC, Design Prior to impacts solar arrays as per the Chuuk State EPA as per Chuuk State Environmental Contractor phase construction Protection Act 1994. Prepare and submit the Contractors ESMPs to CPUC/NDRD-ERD for the Minor Contractor Design Prior to Satowan and Udot mini-grids including all sub-plans (Solid Waste Management phase construction Plan). Incorporate into C-ESMP any conditions stipulated in CEPA permits. Air quality impacts Provide specifications or the gensets consistent with Chuuk EP Act 1994 and Minor Contractor Design Prior to IFC/WB Guidelines for Air Emissions and Ambient Air Quality. phase construction Land acquisition or Consult with affected landowners re siting of solar and diesel generation Minor, Contractor Design Prior to involuntary infrastructure, laydown areas, other contractors land needs and logistics of phase construction resettlement issues moving bulk equipment including gensets from landing site to Project site. from siting of solar Consult with affected landowners and surrounding communities re alignment Minor, CPUC, Design Prior to PV arrays. of distribution network, and arrangement for land access. phase construction Referring to the RPF process, prepare appropriate resettlement instrument(s) Moderate costs if CIU Design Prior to to address land taking impacts in accordance with the project Resettlement private land or assets Safeguards phase construction Policy Framework. Where resettlement impacts are minor and / or where will be impacted. Specialist compensation is required but is not linked to involuntary land acquisition or Otherwise, minor involuntary resettlement, integrate mitigation measures into Contractors ESMP costs. in lieu of a resettlement plan. Settle all resettlement compensation and other entitlements prior to construction. 52 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environmental or Chuuk Pre-Construction Mitigation Actions Costs Responsible Start End social impact Ensure public understanding of Grievance Redress Mechanism and channels for Minor, included in CPUC Detailed Prior to communicating grievances. tendering costs ED/NDRD design construction phase Ensure the contractor and its managers sign GBV and VAC Codes of Conducts Minor, included in CIU Detailed Prior to (Refer to Annex 5) detailing the expected behaviours of Project staff, ESHS tendering costs Safeguards design constructio ESHS requirements, Cultural respect, OHS requirements, Community Health and Specialist phase n Safety considerations. All project staff will undergo training by local services providers identified by the ERD and CPUC on prevention of HIV/AID and GBV. Attendance will be recorded. Construction Phase Mitigation Plan (Hybrid mini-grids, Satowan and Udot Islands, Chuuk) Environmental or Construction Mitigation Actions Costs Responsibl Start End social impact e Noise Ensure noise levels do not exceed CEPA approved standards. Minor, included in Contractor Beginning of After the construction / / Supplier construction completion Restrict work to regular working hours and days (Monday to Saturday). No work installation contract of on Sundays without prior approval, with surrounding population to be informed construction at least two days in advance. Fence off project areas to inhibit unauthorized access using fences and locked gates. Aggregate supply Source all sand and aggregate from Chuuk EPA approved sites and quarries. Minor, included in Contractor Beginning of After the construction / / Supplier construction completion No lagoon dredging is permitted without appropriate permit from Chuuk EPA. installation contract of construction Non-toxic solid Metal, cardboard and plastic will be recycled, where local facilities exist. Minor, Included in Contractor Beginning of After wastes (metal, construction contract / supplier construction completion packing, etc.) Waste that cannot be recycled will be transported by licensed contractor to of places specially allocated for landfills, approved by appropriate local authority. construction 53 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environmental or Construction Mitigation Actions Costs Responsibl Start End social impact e Collect and store all hazardous wastes such as damaged solar panels and Minor, Included in Contractor Beginning of After batteries that contain heavy metals, prior to disposal. construction contract / supplier construction completion of con struction Provide a leak-proof container and a roofed structure over the container in a Minor, Included in Contractor Beginning of After location approved by Chuuk EPA for the on-site storage of hazardous wastes. construction contract construction completion of con- struction Ensure no leaks of oil from new gensets during installation. Where old Minor, Included in Contractor Beginning of After Hazardous wastes, decommissioned gensets are replaced, ensure 100% of oils and lubricants in old construction contract construction completion oil spills or leaks gensets can be contained and collected for removal within the footprint of the of con- during installation building. struction Have available on site, oil sorbents and spill kits to contain any spill, and staff Minor, Included in Contractor Beginning of After should be trained in spill procedures. construction contract construction completion of con- struction No hazardous waste is disposed locally. Removal from on-site storage, Moderate, included Contractor, Beginning of After transport and disposal of hazardous wastes will be by a licensed operator in an in construction CEPA construction completion offshore licensed facility approved by appropriate authority in receiving contract of con- country. struction Plan all earthmoving activities in such a manner to minimize the area of Moderate, included Contractor Beginning After Erosion Control disturbed land, coastline and or lagoon. in construction of con- completion contract struction of construction Accelerated sedimentation caused by coastal disturbance resulting from the Moderate, included Contractor Beginning After transfer of bulk project machinery and supplies from barges / pontoons to in construction of con- completion landing areas shall be contained, confined, and restricted by the best available contract struction of means in such a manner that turbidities will be kept to a minimum. construction 54 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environmental or Construction Mitigation Actions Costs Responsibl Start End social impact e All permanent facilities for the conveyance of water around, through, or from Moderate, included Contractor Beginning of After the project site shall be designed to reduce the velocity of flow in the facilities in construction construction completion to a speed that will not cause significant erosion. contract of construction Within a section or area of the project, all slopes, channels, ditches, or any Moderate, included Contractor Beginning of After disturbed area shall be stabilized as soon as possible after the final grade or in construction construction completion Erosion Control final earthmoving has been completed, and restored to the original vegetation contract of cover or improved as agreed with the land owners. construction Where it is not possible to permanently stabilize a disturbed area immediately Moderate, included Contractor Beginning of After after the final earthmoving has been completed, or where the activity stops for in construction construction completion more than fourteen days, interim stabilization measures shall be promptly contract of implemented. construction All run-off from the project area shall be collected and diverted to facilities for Moderate, included Contractor Beginning of After removal of sediments. in construction construction completion contract of construction Run-off from the project area shall not be discharged into the waters of FSM Moderate, included Contractor Beginning of After without effective means to prevent sedimentation. in construction construction completion Erosion Control contract of construction All channels of conveyance of run-off shall be designed and or grassed or lined Moderate, included Contractor Beginning of After with erosion resistant materials so as to reduce the speed of low of surface run- in construction construction completion off so as not to cause accelerated erosion. contract of construction All work shall be in accordance with the World Bank / IFC Environment, Health Included in CPUC Contractor Beginning of After and Safety Guidelines for Occupational Health and Safety. Refer to Annex 8. All operational construction completion ESHS workers will be provided with hard hats, hearing protection, high visibility procedures of jackets and covered boots. construction 55 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environmental or Construction Mitigation Actions Costs Responsibl Start End social impact e Ensure 100% personnel compliance with Code of Conducts Agreements for GBV Included in Contractor / Beginning After and VAC. In the event of non-compliance, notify Project Manager immediately. construction contract Supplier of completion constructio of n construction Operation Phase Mitigation Plan – Satowan and Udot Islands, Chuuk Environmental or Operation Mitigation Actions Costs Responsible Start End social impact Ensure regular monitoring of noise levels and the immediate implementation Minor, included in CPUC / During Continuou of mitigation / remedial measures should there be non-compliance. Operation Cost Chuuk EPA operation s In the case of machinery/equipment exceeding noise limits, either install silencers or mufflers, fixed or replaced if faulty. Avoid the simultaneous operation of noisy plant wherever practicable. Noise generated from any Power Generator must not exceed an average of Noise 75dB in the Day period, and 60 dB in both the Evening and Night periods. Ensure all vehicles and equipment are serviced regularly, as per manufacturers’ Minor, included in During instructions and maintained in proper working order and turned off when not Contractor Continuous Operation Cost operation in use. Carry out maintenance work on construction plant and vehicles away from identified sensitive receivers and confined to standard daytime construction hours, wherever practicable. Register all complaints related to noise in the GRM Register and attend to their resolution via the GRM immediately. 56 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environmental or Operation Mitigation Actions Costs Responsible Start End social impact Hazardous wastes Store all hazardous wastes in leak proof containers under cover / inside a including batteries building awaiting removal for reuse, recycling or disposal in an offshore facility. and light bulbs Minor, included in During Transported for reuse, recycling or disposal at approved facilities will be by CPUC / CEPA Continuous Operation Cost operation service providers with valid permits. Complaints from the Register / record all complaints received and initiate followed up actions Minor, Included in CPUC During Continuous neighbours and local through the Grievance Redress Mechanism. Operation Cost operation community Construction Phase Monitoring Plan - Satowan and Udot Islands, Chuuk Environment or Monitoring Place of Monitoring method Monitoring Cost Responsible Start End social impact parameter monitoring schedule Solid and Check service Prior to access Visual inspection Prior to granting Included in contract Contractor / Beginning of End of hazardous waste provider’s to site to access to Supplier construction construction permit is valid collect waste construction site Landing sites Visual checks On arrival of Included in contract Contractor / Beginning of End of contractor’s Supplier construction construction Coastal erosion shipment of project equipment etc. Code of Work site Visual inspection Ad hoc Included in contract Contractor / Beginning of End of Workers health Conducts Supplier construction construction and safety Agreements OHS Plan GRM Work site Consultations with local Ad hoc Minor, included in CPUC Beginning of End of Public safety Complaints people; local media reports operation cost construction construction register 57 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environment or Monitoring Place of Monitoring method Monitoring Cost Responsible Start End social impact parameter monitoring schedule Physical Contractors’ Visual inspection Ad hoc Included in contract Contractor / Beginning of End of barriers to Working sites Supplier construction construction working sites Signed Code of Work site and Consultations with local Ad hoc Minor, included in CPUC The End of Conducts surrounding people; local media reports operation cost beginning of construction communities construction Operation Phase Monitoring Plan, Satowan and Udot Islands, Chuuk Environment Monitoring Place of Monitoring method Monitoring Cost Responsible Start End impact parameter monitoring schedule CEPA Location Noise meter Ad hoc, and no Minor, included CPUC / Start of Continuous approved relative to later than 5 in operation cost CEPA operation Noise noise nearest days after standards sensitive receipt of any receptors complaints. Any sign of Where leak Visual inspection Ad hoc; prior to Minor, included CPUC / Start of Continuous Soil and water leaks of oil and and after in operation cost local operation contamination from contaminatio scheduled municipal from accidental generators n is maintenance of authority. spill observed, or gensets. suspected. Any sign of Site of Visual inspection Prior to granting Minor, included CPUC Start of Continuous damage to PV installation access to site in Operation Cost operation Solid and panels hazardous waste Presence of Storage Visual inspection Ad hoc during Minor, included CPUC Start of Continuous waste facility for operation in Operation Cost operation waste 58 FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Environment Monitoring Place of Monitoring method Monitoring Cost Responsible Start End impact parameter monitoring schedule Complaints from Any complaint Complaints Visual inspection Ad hoc during Minor, included CPUC Start of Continuous the neighbours received register operation in Operation Cost operation and local community 59 Annex 4: ESHS – CODES OF CONDUCT CODES OF CONDUCT AND ACTION PLAN FOR IMPLEMENTING ESHS AND OHS STANDARDS, AND PREVENTING GENDER BASED VIOLENCE (GBV) AND VIOLENCE AGAINST CHILDREN (VAC) 1. Background The purpose of these Codes of Conduct and Action Plan for Implementing ESHS and OHS Standards, and Preventing Gender Based Violence (GBV) and Violence Against Children (VAC) is to introduce a set of key definitions, core Codes of Conduct, and guidelines that: i. clearly define obligations on all project staff (including sub-contractors and day workers) with regard to implementing the project’s environmental, social, health and safety (ESHS) and occupational health and safety (OHS) requirements, and; ii. prevent, report and address GBV and VAC within the work site and in its immediate surrounding communities. The application of these Codes of Conduct will help ensure the project meets its ESHS and OHS objectives, as well as preventing and/or mitigating the risks of GBV and VAC on the project. Mutual respect and fair treatment between those working on the project and local communities is critical to a safe, respectful, and productive workplace and operating environment. GBV and VAC can be one of the most serious violations of respect and fair treatment which can harm the local community, and significantly damage trust and cooperation between parties. These Codes of Conduct are to be adopted by those working on the project and are meant to: i. create awareness of the ESHS and OHS expectations on the project; ii. create common awareness about GBV and VAC and: a. ensure a shared understanding that they have no place in the project; and, b. create a clear system for identifying, responding to, and sanctioning GBV and VAC incidents. Ensuring that all project staff understand the values of the project, understand expectations for all employees, and acknowledge the consequences for violations of these values, will help to create a smoother, more respectful and productive project implementation thereby helping ensure that the project’s objectives will be achieved. 2. Definitions The following definitions apply:  Environmental, Social, Health and Safety (ESHS): an umbrella term covering issues related to the impact of the project on the environment, communities and workers.  Occupational Health and Safety (OHS): Occupational health and safety is concerned with protecting the safety, health and welfare of people engaged in work or employment. The enjoyment of these standards at the highest levels is a basic human right that should be accessible by each and every worker.  Gender-Based Violence (GBV): is an umbrella term for any harmful act that inflicts physical, sexual, emotional or psychological harm or suffering to a person, threats of such acts, coercion, and other deprivations of liberty, which is based on power inequalities that are based on gender roles in which a perpetrator gains power and exerts control over the other person. These acts can occur in public or in private. GBV is abuses of power perpetrated against any persons because of their gender.  Violence against Women and Girls (VAWG): is an umbrella term for any harmful act that is perpetrated against girls and women, expressly because she is a girl or woman, 60 and that is based on socially ascribed (i.e. gender) differences between men and women. It includes acts that inflict physical, sexual, emotional or psychological harm or suffering, threats of such acts, coercion, and other deprivations of liberty and can occur in public or in private. Since women and children are most vulnerable to violence, VAWG specifically speaks to the power dynamics between men and women in which women are perceived to have less power than men.16  Violence Against Children (VAC): is defined as physical, sexual, emotional and/or psychological harm, neglect or negligent treatment of minor children (i.e. under the age of 18), including exposure to such harm,17 that results in actual or potential harm to the child’s health, survival, development or dignity in the context of a relationship of responsibility, trust or power. This includes using children for profit, labor, sexual gratification, or some other personal or financial advantage. This also includes other activities such as using computers, mobile phones, or video and digital cameras appropriately, and never to exploit or harass children or to access child pornography through any mediums.  Sexual Harassment: is unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. Sexual harassment is not always explicit or obvious, it can include implicit and subtle acts but always involves a power and gender dynamic in which a person in power uses their position to harass another based on their gender. Sexual conduct is unwelcome whenever the person subjected to it considers it unwelcome. Ex. Looking somebody up and down; kissing, howling or smacking sounds; hanging around somebody; whistling and catcalls; giving personal gifts.  Accountability Measures: are the measures put in place to ensure the confidentiality of survivors and to hold contractors, consultants and the client responsible for instituting a fair system of addressing cases of GBV and VAC.  Contractors Environmental and Social Management Plan (CESMP): The plan prepared by the contractor as to how they will implement the works activities in accordance with the project’s environmental and social management plan (ESMP).  Child: is used interchangeably with the term ‘minor’ and refers to a person under the age of 18.18 This is in accordance with Article 1 of the United Nations Convention on the Rights of the Child.  Child Protection (CP): is an activity or initiative designed to protect children from any form of harm, particularly arising from VAC.  Consent: is the informed choice underlying an individual’s free and voluntary intention, acceptance or agreement to do something. No consent can be found when such acceptance or agreement is obtained through the use of threats, force or other forms of coercion, abduction, fraud, deception, or misrepresentation. In accordance with the United Nations Convention on the Rights of the Child, the World Bank considers that consent cannot be given by children under the age of 18, even in the event that national legislation of the country into which the Code of Conduct is introduced has a lower age19. Mistaken belief regarding the age of the child and consent from the child is not a defense.  Consultant: is as any firm, company, organization or other institution that has been awarded a contract to provide consulting services in the context of the ERAP, to the project, and has hired managers and/or employees to conduct this work.  Contractor: is any firm, company, organization or other institution that has been awarded a contract to conduct infrastructure development works in the context of the 16 It is important to note that although disproportionately perpetrated against women and girls, violence can also be perpetrated against men and boys. While VAWG specifically relates to violence against women and girls, GBV relates to violence against persons of any gender, including men, boys, and transgender. 17 Exposure to domestic violence is also considered VAC. 18 FSM is party to this convention. http://www.pseataskforce.org/uploads/tools/1478613357.pdf 19 The World Bank follows the United Nations for the age of consent (18 years) so this applies on World Bank financed projects. 61 ERAP project and has hired managers and/or employees to conduct this work. This also includes sub-contractors hired to undertake activities on behalf of the contractor.  Employee: is as any individual offering labor to the contractor or consultant within country on or off the work site, under a formal or informal employment contract or arrangement, typically but not necessarily in exchange for a salary (e.g. including unpaid interns and volunteers), with no responsibility to manage or supervise other employees.  GBV and VAC Allegation Procedure: is the prescribed procedure to be followed when reporting incidents of GBV or VAC.  GBV and VAC Codes of Conduct: The Codes of Conduct adopted for the project covering the commitment of the company, and the responsibilities of managers and individuals with regards to GBV and VAC.  GBV and VAC Compliance Team (GCCT): a team established by the project to address GBV and VAC issues.  Grievance Redress Mechanism (GRM): is the process established by the VAIP project to receive and address complaints (see www.vaip.vu).  Grooming: are behaviors that make it easier for a perpetrator to procure a child for sexual activity. For example, an offender might build a relationship of trust with the child, and then seek to sexualize that relationship (for example by encouraging romantic feelings or exposing the child to sexual concepts through pornography).  Manager: is any individual offering labor to the contractor or consultant, on or off the work site, under a formal employment contract and in exchange for a salary, with responsibility to control or direct the activities of a contractor’s or consultant’s team, unit, division or similar, and to supervise and manage a pre-defined number of employees.  Online Grooming: is the act of sending an electronic message with indecent content to a recipient who the sender believes to be a minor, with the intention of procuring the recipient to engage in or submit to sexual activity with another person, including but not necessarily the sender.  Perpetrator: is the person(s) who commit(s) or threaten(s) to commit an act or acts of GBV or VAC.  Response Protocol: is the mechanisms set in place to respond to cases of GBV and VAC.  Sexual Favors: is a form of sexual harassment and includes making promises of favorable treatment (ie. promotion) or threats of unfavorable treatment (ie. loss of job) dependent on sexual acts—or other forms of humiliating, degrading or exploitative behavior.  Survivor/Survivors: is the person(s) adversely affected by GBV or VAC. Women, men and children can be survivors of GBV; children can be survivors of VAC.  Work Site: is the area in which infrastructure development works are being conducted, as part of the project.  Work Site Surroundings: is the ‘Project Area of Influence’ which are any area, urban or rural, directly affected by the project, including all human settlements found on it. 3. Codes of Conduct This chapter presents three Codes of Conduct for use:  Company Code of Conduct: Commits the company to addressing GBV and VAC issues;  Manager’s Code of Conduct: Commits managers to implementing the Company Code of Conduct, as well as those signed by individuals; and,  Individual Code of Conduct: Code of Conduct for everyone working on the project, including managers. 62 3.1 Company Code of Conduct Company Code of Conduct Implementing ESHS and OHS Standards Preventing Gender Based Violence and Violence Against Children The company is committed to ensuring that the project is implemented in such a way which minimizes any negative impacts on the local environment, communities, and its workers. This will be done by respecting the environmental, social, health and safety (ESHS) standards, and ensuring appropriate occupational health and safety (OHS) standards are met. The company is also committed to creating and maintaining an environment in which gender based violence (GBV) and violence against children (VAC) have no place, and where they will not be tolerated by any employee, associate, or representative of the company. Therefore, in order to ensure that all those engaged in the project are aware of this commitment, the company commits to the following core principles and minimum standards of behavior that will apply to all company employees, associates, and representatives including sub-contractors, without exception: General 1. The company—and therefore all employees, associates, and representatives—commits to complying with all relevant national laws, rules and regulations. 2. The company commits to full implementing its ‘Contractors Environmental and Social Management Plan’ (CESMP). 3. The company commits to treating women, children (persons under the age of 18), and men with respect regardless of race, color, language, religion, political or other opinion, national, ethnic or social origin, property, disability, birth or other status. Acts of GBV and VAC are in violation of this commitment. 4. The company shall ensure that interactions with local community members are done with respect and non-discrimination. 5. Demeaning, threatening, harassing, abusive, culturally inappropriate, or sexually provocative language and behavior are prohibited among all company employees, associates, and its representatives. 6. Respect reasonable work instructions (including regarding environmental and social norms) 7. Protect and ensure proper use of property (for example, to prohibit theft, carelessness or waste) Health and Safety 8. The company will ensure that the project’s occupational health and safety (OHS) management plan is effectively implemented, including wearing prescribed personal protective equipment, preventing avoidable accidents and reporting conditions or practices that pose a safety hazard or threaten the environment. 9. The company will: a. prohibit the use of alcohol during work activities. b. The company will prohibit the use of illegal substances at all times. 10. The company will ensure that adequate sanitation facilities are available on site and at any worker accommodations provided by the contractor. Gender Based Violence and Violence Against Children 11. Acts of GBV or VAC constitute gross misconduct and are therefore grounds for sanctions, which may include penalties and/or termination of employment. All forms of GBV and VAC, including grooming are unacceptable, regardless of whether they take 63 place on the work site, the work site surroundings, at worker’s camps or at worker’s homes. 12. In addition to company sanctions, legal prosecution of those who commit acts of GBV or VAC will be pursued if appropriate. 13. Sexual contact or activity with children under 18—including through digital media—is prohibited. Mistaken belief regarding the age of a child is not a defense. Consent from the child is also not a defense or excuse. 14. Sexual Harassment—for instance, making unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct, of a sexual nature, including subtle acts of such behavior, is prohibited. Ex. Looking somebody up and down; kissing, howling or smacking sounds; hanging around somebody; whistling and catcalls; giving personal gifts; making comments about somebody’s sex life; etc. is prohibited. 15. Sexual favors —for instance, making promises or favorable treatment dependent on sexual acts—or other forms of humiliating, degrading or exploitative behavior are prohibited. 16. Unless there is full consent20 by all parties involved in the sexual act, sexual interactions between the company’s employees (at any level) and members of the communities surrounding the work place are prohibited. This includes relationships involving the withholding/promise of actual provision of benefit (monetary or non-monetary) to community members in exchange for sex—such sexual activity is considered “non- consensual” within the scope of this Code. 17. All employees, including volunteers and sub-contractors are highly encouraged to report suspected or actual acts of GBV and/or VAC by a fellow worker, whether in the same company or not. Reports must be made in accordance with GBV and VAC Allegation Procedures. 18. Managers are required to report suspected or actual acts of GBV and/or VAC as they have a responsibility to uphold company commitments and hold their direct reports responsible. Implementation To ensure that the above principles are implemented effectively the company commits to ensuring that: 19. All managers sign the ‘Manager’s Code of Conduct’ detailing their responsibilities for implementing the company’s commitments and enforcing the responsibilities in the ‘Individual Code of Conduct’. 20. All employees sign the project’s ‘Individual Code of Conduct’ confirming their agreement to comply with ESHS and OHS standards, and not to engage in activities resulting in GBV or VAC. 21. Displaying the Company and Individual Codes of Conduct prominently and in clear view at workers’ camps, offices, and in in public areas of the work space. Examples of areas include waiting, rest and lobby areas of sites, canteen areas, health clinics. 22. Ensure that posted and distributed copies of the Company and Individual Codes of Conduct are translated into the appropriate language of use in the work site areas as well as for any international staff in their native language. 23. An appropriate person is nominated as the company’s ‘Focal Point’ for addressing GBV and VAC issues, including representing the company on the GBV and VAC Compliance Team (GCCT) which is comprised of representatives from the client, contractor(s), the supervision consultant, and local service provider(s). 24. Ensuring that an effective GBV and VAC Action Plan is developed in consultation with the GCCT which includes as a minimum: 20 Consent is defined as the informed choice underlying an individual’s free and voluntary intention, acceptance or agreement to do something. No consent can be found when such acceptance or agreement is obtained through the use of threats, force or other forms of coercion, abduction, fraud, deception, or misrepresentation. In accordance with the United Nations Convention on the Rights of the Child, the World Bank considers that consent cannot be given by children under the age of 18, even in the event that national legislation of the country into which the Code of Conduct is introduced has a lower age. Mistaken belief regarding the age of the child and consent from the child is not a defense. 64 a. GBV and VAC Allegation Procedure to report GBV and VAC issues through the project Grievance Redress Mechanism (GRM); b. Accountability Measures to protect confidentiality of all involved; and, c. Response Protocol applicable to GBV and VAC survivors and perpetrators. 25. That the company effectively implements the GBV and VAC Action Plan, providing feedback to the GCCT for improvements and updates as appropriate. 26. All employees attend an induction training course prior to commencing work on site to ensure they are familiar with the company’s commitments to ESHS and OHS standards, and the project’s GBV and VAC Codes of Conduct. 27. All employees attend a mandatory training course once a month for the duration of the contract starting from the first induction training prior to commencement of work to reinforce the understanding of the project’s ESHS and OHS standards and the GBV and VAC Code of Conduct. I do hereby acknowledge that I have read the foregoing Company Code of Conduct, and on behalf of the company agree to comply with the standards contained therein. I understand my role and responsibilities to support the project’s OHS and ESHS standards, and to prevent and respond to GBV and VAC. I understand that any action inconsistent with this Company Code of Conduct or failure to take action mandated by this Company Code of Conduct may result in disciplinary action. Company name: _________________________ Signature: _________________________ Printed Name: _________________________ Title: _________________________ Date: _________________________ 65 Annex 5: Summary of Consultations with Satowan Community, 10 July 2018 Background: Consultations with Satowan was conducted on 10 July 2018 as part of the ESMP preparation. The main objective was to assess the environmental and social suitability of the selected site in Satowan for the construction of the hybrid mini-grid proposed for funding under SEDAP. The team for the consultations comprises of (i) the SEDAP ESMP Consultant (Sam Sesega), Secretary of the Ministry of Energy and Natural Resources (Marion Henry), CPUC Chief Financial Officer (Lei Shirai) and the Satowan Mayor. Process: The team was welcomed by the local community and municipal leaders at the Community Meeting house. After brief formalities, and with translation provided by Secretary Henry, three verbal presentations were made. Secretary Henry presented on the FSM’s Energy Policy and targets, highlighting the emphasis on renewable energy in general and the potential for solar in particular and of SEDAP’s aim of improving access of rural communities to electricity. The ESMP Consultant then presented on the Project requirements for environmental and social planning and the importance of consulting all stakeholders in this exercise. The proposed mini-grid for Satowan was explained, as well as the need to ensure any potential adverse environmental and social impacts are mitigated effectively. The CPUC representative explained CPUC operations and plans put forward for SEDAP to fund a mini-grid for Satowan and Udot. Presentations were made in the local language with translation for the Safeguards Consultant provided by Secretary Henry. Participants: All participants signed an Attendance Sheet circulated during the Meeting. Only three women attended, the rest were men. Scanned copies of the signed sheets are appended. Issues Raised: 1. There were previous consultations (2015) on the same issue by the Consulting firm Balance, who prepared a feasibility study for a hybrid mini-grid in Satowan. 2. The community is unanimously supportive of the proposed project. 3. All land requirements for the project will be donated by the community, if existing government owned land is insufficient or unsuitable. One leader recalled that a formal letter signed by local leaders pledged the voluntary donation of community land for the Project, if required. 4. The CPUC confirmed that the referenced letter was received by CPUC. Only one signature was on the letter. The community leaders at the meeting reconfirmed that it was a unanimous decision by the community. 66 5. Existing power provided by the CPUC generator is highly unreliable and frequently breaks down. Regular maintenance by a trained technical officer is required. 6. The existing distribution network is above-ground on transmission poles that run along the shoulder of the road. The project may consider extending this line for this project rather a new underground cable. 7. The community offers also the use of rooftops of the two main churches for solar arrays if acceptable. 8. An existing EU funded solar array powers the school lights and computer lab. 9. When and how soon the project will commence? This was asked several times. 10. Several large breadfruit trees around the targeted site may need trimming. The community didn’t have a problem with this. 11. Regarding the logistics of moving bulk cargo for the project from the barges to land, the community recalled that previous similar cargo shipment relied on the involvement of all community able bodied men to physically shift bulk cargo from the landing point to the construction site. The community offers its availability to assist the Contractor in moving loads manually. 12. Contractors will need to consult with the community leaders prior to project construction starting with respect to laydown areas, and possibly camping areas. Site visit of the proposed area followed, including visit to the existing solar system at the school, the existing generator shed, and the most likely landing site for transferring onto land bulk shipment of solar power panels, generators, storage batteries and other project supplies. 67 Annex 6: Summary of Consultations with Government Officials in Pohnpei and Chuuk, and local government officials and people in Udot 1. Worsening used oil accumulation from generators in Pohnpei and Chuuk, and other states. 2. Local waste oil reuse – boat owner in Pohnpei and Chuuk but demand is not consistent and irregular. 3. SPREP led initiative to collect and ship used oil from Pohnei for offshore disposal and or recycling. Tender was to have gone out before end of June 2018 for interested companies. PUC was invited to comment on the draft tender advertisement. 4. Strong support and interest in Udot for project. Existing old (decommissioned) genset that needs removal. New genset for the mini-grid to replace this old one in its existing footprint. An existing solar powered system providing power for the school and computer lab. 5. No road in Udot. Underground distribution network will roughly follow alongside existing walking track. 6. CPUC – State Law (CSL-8-05-14) allows CPUC employees to enter into private land to take land for projects without compensation. 7. Udot – the Udot community has had previous consultations with the Feasibility Study consultant and the community had formally written to CPUC expressing their support for the Project, and a commitment to provide land for the project at no cost. 8. In addition to the RE facilities maintenance, the hosting building/structure maintenance needs to be included in the O&M plan. 9. The usage of batteries has significant environmental impacts and practical recycling plan needs to be looked into. 10. Gender issuesneeds to be addressed, including gender-based violence from local workers. 11. CPUC would like to use the marshlands in Weno for the solar PV installation, to utilize otherwise unusable land. 12. Tilapia is reportedly of abundance within the Weno marshland and local people fish it for food, and possibly sell for income. 68 Annex 7: List of People Consulted Pohnpei – Nixon Anson – PUC General Manager Marion Henry – Secretary of Department of Resources and Development Windfred Yamada – PUC Dackson – PUC Alex – PUC Hubert Yamada – Project Coordinator, ESDP Ralph Karlhammer – Energy Specialist, ESDP Chuuk – Kembo – CEO, CPUC Lei Shirai - CPUC Chief Financial Officer Robert – CPUC Wilfred Robert – Disaster Coordination Office Satowan – Simeon Hardy – Chief Justice Miarchy Assito – Mayor Owen Lieman – Deputy Mayor Jimmy Murangin – Police Officer Angkel George – community member Others on signed participation list attached. 69 70 Annex 8: Occupational Health and Safety (OHS) Implementation Plan Guidelines …To be added later 71 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 Annex 9: Solid Waste Code of Conduct Requirements These requirements will form the basis for the development of the SEDAP Code of Practices for SEDAP Solid Waste Management. The key objective of these requirements is to assist the Contractor(s) in the preparation of its Solid Waste Management Plan, as a subplan of its Contractors ESMP. It will also assist the PIU Safeguard Specialist to develop a sector based code of practice for waste management. The requirements for the Code of Practice are: 1. Compliance with FSM Solid Waste Management Regulations. 2. Satisfies the EHS requirements of the ESMP 3. Satisfies the EHS requirements of the World Bank 4. Meets the following minimum standards: ix. No FSM I landfills are to be used for any waste. All waste is to be recycled or disposed of offshore at a permitted facility. x. No dumping of any waste in FSM xi. Compliance with relevant international conventions for export of hazardous and non-hazardous waste xii. Identify and utilise suitable local recycling and reuse options 5. Implements the usual good practice of solid waste management, including: vi. Segregation of waste vii. Secure storage for waste viii. Adopting the waste hierarchy: (i) avoid; (ii) reduce; (iii) reuse; (iv) recycle ix. Collaborating with other sectors, waste generators and government initiatives for cumulative benefits x. Build capacity and sustainability within the renewal energy sector in the approach to waste management through SEDAP implementation When developing, and implementing the Code of Practice, the PIU Safeguard Specialist will consider: 1. Waste streams: identify which waste streams are likely to be generated and estimate the approximate amounts of materials Undertake inventory of materials that can be reused, recycled or recovered from the project:  Specific types of materials: a full list of options is provided in the assessment table below  Amount of material expected  Possible contamination by hazardous materials like asbestos or lead: these materials will limit reuse/recycling options and require special disposal. 72 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 Waste and/or Recyclable Materials Destination Reuse and recycling Disposal Possible Materials Estimated On-site (How Off-site (Specify Specify the off- Generated (Add or Volume (m3) or will materials be the proposed island disposal Delete as necessary) Area (m2) or reused and/or destination site and the weight (t) recycled on site) and/or recycling process for facility) collection, storage and eventual disposal Timber (specify type) Wood waste (e.g. MDF, plywood) Cardboard Ferrous materials (e.g. iron, steel) Nonferrous materials (e.g. copper wiring) Concrete Roofing tiles Ceramic tiles Gravel Gypsum board (e.g. drywall) Plaster Plumbing fixtures and fittings Carpet and underlay Stone Asphalt Glass Sand/fill Topsoil Green waste Asbestos Fluorescent light bulbs Hydrocarbons and 73 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 fuel Damaged solar panels Batteries Plastics PVC Co-mingled recyclables (e.g. paper, cans, glass and plastic bottles, carboard, etc) General waste (e.g. food waste, contaminated food packaging, non- recyclable plastics) Mixed waste 2. Collection and Storage: How and where will the difference waste streams be collected and stored prior to their disposal offshore. Detail the types of containers to be used and the storage areas that will be created for this waste. Differentiate between regular, bulk and hazardous waste. This must be compliant with the minimum standards detailed in the ESMP: a. Damaged solar panels and used batteries will be stored in a 10ft container (provided by Contractor) and a roofed structure over the containers in a location to be determined by CPUC. b. Hazardous wastes such as old oil and fuel shall be collected and stored in self bunded containers. Containers shall be stored in a bunded covered area prior to export for disposal c. Hazardous wastes such as discarded incandescent bulbs shall be collected and stored in water tight containers. Containers shall be stored in bunded covered area prior to export for disposal. d. Difficult waste such as appliances and building cladding shall be stored in a secure fenced and covered area. 3. On-site: understand how the waste management system (housekeeping, sorting and storage) will work on-site, including bin placement and access. Determine storage requirements (separate bins or co-mingled), things to consider include:  Ease of use: ensure that containers are easily accessible by workers and that storage areas are clearly sign posted  Safety: ensure that the containers and storage can be managed safely, including limiting public access to the storage areas  Hazardous waste materials storage 74 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018  Aesthetics: ensure that the project sites and storage area appears orderly and will not raise concern from local residents or businesses – for example screening for dust and litter containment and daily collection of windblown material  Establish a collection/delivery plan in collaboration with waste contractors for waste and recyclable materials generated on-site. 4. Clearly assign and communicate responsibilities: ensure those involved in the project are aware of their responsibilities in relation to the Codes of Practice. 5. Training: be clear about how the various elements of the Codes of Practice will be implemented. 6. Monitor: to ensure the plan is being implemented, monitor on-site as per the ESMP monitoring plan. 75 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 Annex 10: WHO Ambient Air Quality Guidelines Table 1: WHO Ambient Air Quality Guidelines7,8 Averaging Guideline value in Period g/m3 Sulfur dioxide (SO2) 24-hour 125 (Interim target-1) 50 (Interim target-2) 20 (guideline) 10 minute 500 (guideline) Nitrogen dioxide 1-year 1-hour 40 (guideline) (NO2) 200 (guideline) Particulate 1-year 70 (Interim target-1) Matter PM10 50 (Interim target-2) 30 (Interim target-3) 20 (guideline) 24-hour 150 (Interim target-1) 100 (Interim target-2) 75 (Interim target-3) 50 (guideline) Particulate 1-year 35 (Interim target-1) Matter PM2.5 25 (Interim target-2) 15 (Interim target-3) 10 (guideline) 24-hour 75 (Interim target-1) 50 (Interim target-2) 37.5 (Interim target-3) 25 (guideline) Ozone 8-hour daily 160 (Interim target-1) maximum 100 (guideline) 76 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 Annex 11: PCR Chance Find Procedures In accordance with OP4.11 Physical Cultural Resources and the RMI Historic Preservation Act 1991, when a person working on the project discovers a cultural heritage site or item, the following procedures should be followed: 1. Stop the activities in the area of the chance find; 2. Delineate the discovered site or area (e.g. fencing); 3. Secure the site to prevent any further disturbance, damage or loss. In cases of human remains, arrange for a guard to watch the site until the police, local government and / or National Cultural Commission representative or person with delegated authority take over; 4. Prohibit the collection of objective by any person; 5. Notify the local government and RMI Historic Preservation Office within 24 hours (and police if it is human remains); 6. Any objects that are found must be handed over to the Historic Preservation Office. 7. Project works can resume only after instruction is provided from the Historic Preservation Office. 77 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 Annex 12: Report of Consultation with Chuuk State Energy Working Group – 8 October, 2018 Report of Consultation for the Sustainable Energy Development and Access Project (SEDAP) with the Chuuk Energy Working Group and others. Venue Conference Room Date/Time 8 October 2018 Chuuk Power Utility Company 10:00am-1:00pm (CPUC) Attendees from CPUC Kembo Mida, General Manager Lei Shirai, Chief Financial Officer Attendees from WB None Attendees from Sam Sesega (Social Resettlement Consultant) (SS) Environment Division ESDP/SEDAP Matter Comments/Presentation 10:30 Wildfred Chairman of the Energy Working Group welcomed everyone from the various agencies and sectors to the Meeting, asked the Mayor of Udot to give the opening prayer, and after the Opening Prayer, declared the meeting open. He referred to the prepared Agenda and proposed that the meeting started with the presentation by the Safeguards Consultant. Project Overview The Safeguards Specialist started with a slide on the purpose of this consultation highlighting that it is a WB requirement, and best practice for the planning of development projects; that the safeguards instruments had been disclosed in draft form; how this consultation contributes to the project preparatory phase, and to discuss key issues pertaining to the Projects safeguards instruments namely the ESMP, ESMP for Weno, Resettlement Policy Framework (RPF) and Stakeholder Engagement Plan (SEP). The SS noted that where appropriate and relevant, comments received will be integrated into the final project design. The SS powerpoint presentation discussed the project components, and then focused on those physical investments earmarked for Chuuk – namely the Weno solar power plant, the mini-grids in Udot and the upgrade to the Satowan mini-grid. He explained the frameworks (ESMF and RPF) highlighting the process for screening new sites, the role of CPUC in this process, and in the subsequent preparation of safeguards instruments required; the proposed CPUC Engineering Unit for assisting the PIU Safeguards Specialist in the preparation of the safeguards instruments, and in the subsequent implementation. The Grievance Redress Mechanism was discussed last, the importance of recording all complaints received, the need for CPUC to identify who the Contact Person is within CPUC; and how unresolved complaints filter up to the CPUC General Manager, to the PIU Project Manager and the Project Steering Committee (PSC), before litigation if a dissatisfied complainant wishes to. Following the SS’s presentations, the floor was open to questions and responses from the floor. The following summarizes the issues raised by the various participants. Name/Village/gender Comment/View expressed 78 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 i. If there is delay in securing land for the Weno solar installation, can the Satowan and Udot mini-grid proceed still? ii. Are these proposals going to be implemented and soon? The Udot feasibility study by Balance was completed in 2016 and the communities are still waiting. iii. Is the project going to fund activities such as surveying land boundaries in order to legally define easements, cost of hiring a boat to go to Udot and those kinds of costs? iv. The critical issue for CPUC, is long term sustainability. Right now, CPUC prefers to have the Weno solar plant implemented and be operational first, before Satowan and Udot, because savings projected to be generated from the Weno solar is what CPUC will rely on to support the maintenance of the mini-grids in Udot and Satowan. Failing this, it is financially infeasible for CPUC to sustain these outer island investments. v. It is critical that the Weno solar power plant is implemented and before the outer island investments in mini-grids. vi. A few weeks ago, an WB consultant (Anetter) visited Udot and when asked by local people as to when the project will be implemented, she was not able to say so. As a result, Udot are skeptical and uncertain, after their expectations were pumped up by other consultants who were more forthcoming. vii. Need to properly manage the expectation of local communities. viii. Is this project going ahead? ix. For Udot and Satowan, how much per kWatt if they are to run it on their own? x. Satowan and Udot are likely to have higher tariffs and may likely need subsidies to keep it viable. xi. Affordability of tariffs in Satowan and Udot is highly uncertain. CPUC and the Government may set up these solar power sources only to find no one is willing to pay for them. Then what? xii. CPUC recognizes the risks involved and for that reason, are keen to engage the Energy Working Group in the decision-making process and not CPUC on their own. xiii. Why is it that Chuuk is offered only 2 MW of solar while Kosrae will get 2MWh of battery capacity? xiv. If CPUC can find enough land for a 3MW solar facility, will the WB be amenable to funding it under SEDAP? xv. How many landowners have so far indicated interest in offering their land for the Project’s solar installation? xvi. The Chuuk State is fully supportive of the SEDAP and she (State) would prefer that the solar power facility in Weno be implemented and completed first before Satowan and Udot. xvii. If land is an issue, can we have a mix of roof-tops and land –based panels to get the 2 MW proposed? xviii. If Xavier school is eliminated from the ESDP, should be put in back in under SEDAP? xix. Udot land earmarked for the Project is confirmed to be owned by the Municipality, thus available to the Project without any issues. xx. Satowan land earmarked for the new genset and solar panels etc is Government owned and is available for the project. xxi. Its best to await the ENTURA Feasibility study report before making any changes to the Project; mini-grids are often more complex than people they are. xxii. There should be consultations in Satowan and Udot with the local people to confirm the alignment of the easements for the distribution networks, before contractors work starts. xxiii. What exactly is proposed for Satowan? An expansion or an upgrade? xxiv. Satowan people living in Weno should be also consulted. Most of them are in Weno for work but their homes and families live on Satowan. xxv. Will SEDAP fund the cost of land surveying, travel to Udot and Satowan to do consultation and other project related activities? xxvi. There should be another consultation to further engage other stakeholders and the public who are not involved in today’s consultations, this week, while the Safeguards Specialist is in Weno. 79 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 Closing : Following questions and answers, the Chairman of the Energy Working Group thanked all who attended, and the Consultant for his presentation and contribution to the discussion. He reiterated that another consultation for other stakeholders will be conducted on Thursday 9:00am at this same venue. He then closed the consultation meeting. Minutes compiled by Sam Sesega SEDAP/ESDP – Safeguards Specialist ********* 80 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 Annex 13: Reports of Consultations in Chuuk, 11th October, 2018 Report of Consultation for the Sustainable Energy Development and Access Project (SEDAP) with the Chuuk Energy Working Group and others. Venue Conference Room Date/Time 11 October 2018 Chuuk Power Utility Company 9:00am-12:00pm (CPUC) Attendees from CPUC Kembo Mida, General Manager Lei Shirai, Chief Financial Officer Attendees from WB None Attendees from Sam Sesega (Social Resettlement Consultant) (SS) Environment Division ESDP/SEDAP Name/Time/Matter/ Comments/Presentation 10:30 Wildfred Robert Chairman of the Energy Working Group welcomed everyone from the various agencies and sectors to the Meeting, asked the Senior Land Commissioner to give the opening prayer, and after the Opening Prayer, declared the meeting open. Participants then introduced themselves – giving names, positions and agencies or organizations represented. Wilfred then invited the Safeguards Consultant to give his presentation. Project Overview The Safeguards Specialist started with a slide on the purpose of this consultation highlighting that it is a WB requirement, and best practice for the planning of development projects; that the safeguards instruments had been disclosed in draft form; how this consultation contributes to the project preparatory phase, and to discuss key issues pertaining to the Projects safeguards instruments namely the ESMP, ESMP for Weno, Resettlement Policy Framework (RPF) and Stakeholder Engagement Plan (SEP). The SS noted that where appropriate and relevant, comments received will be integrated into the final project design. The SS powerpoint presentation discussed the project components, and then focused on those physical investments earmarked for Chuuk – namely the Weno solar power plant, the mini-grids in Udot and the upgrade to the Satowan mini-grid. He explained the frameworks (ESMF and RPF) highlighting the process for screening new sites, the role of CPUC in this process, and in the subsequent preparation of safeguards instruments required; the proposed CPUC Engineering Unit for assisting the PIU Safeguards Specialist in the preparation of the safeguards instruments, and in the subsequent implementation. The Grievance Redress Mechanism was discussed last, the importance of recording all complaints received, the need for CPUC to identify who the Contact Person is within CPUC; and how unresolved complaints filter up to the CPUC General Manager, to the PIU Project Manager and the Project Steering Committee (PSC), before litigation if a dissatisfied complainant wishes to. Following the SS’s presentations, the CEO CPUC added more background information, explaining the low electricity coverage (27%) in FSM, the Master planning exercise, the emphasis in Chuuk on extending access, why Satowan and Udot, what a mini-grid is vs a 81 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 stand alone system, some of the economic issues faced in the decisions involving the sequencing of the investments and the overriding economic importance of the solar power plant in Weno vis- à-vis the outer islands mini-grids and the role it plays in financially sustaining the latter. Comments/Views expressed i. Sunlight is available but CPUC has no money for panels. ii. Government is to provide land for the investment. iii. Currently CPUC spend about $300k per month on diesel. iv. CPUC is not likely to make money from the mini-grids investment in Satowan and Udot. v. There are other studies to follow that will examine the technical and financial feasibility of the mini-grids and solar power plant together. vi. Voluntary land donation is not expected in Chuuk; there is not much land and landowners don’t give away land for free. vii. Home solar systems are not proposed for Weno but on Udot. They are also not free but will be metered. viii. Hope the WB will be amenable to increasing the solar component to a 3 MW capacity if CPUC comes up with the land (30,000m2 or more) ix. Can CPUC deal directly with World Bank on these design issues? x. On Satowan, what waste products will be generated? xi. What are the benefits for the customer? Will the tariffs come down? xii. Are there similar solar components in other States? xiii. Is the access objective flexible? Can WB prioritize RE over access? xiv. It is important that there are other economic activities going to support and create a demand for RE such as the fisheries project in Pohnpei that is working closely with PUC. xv. Mayor of Satowan (MoS) – appreciates being invited to consultation; reaffirm Satowan community’s support for the project; noted that there are other sites if more land is needed for the project e.g. Catholic Church property. xvi. MoS – underground network is fully supported by the Satowan Municipal Council. xvii. Senior Land Commissioner (SLC) – land taking is time consuming; recommends a site with only 1 land owner and not multiple landowners; xviii. SLC – requested that he be advised of the preferred site asap so that land titles can be released asap to expedite project preparation/implementation. xix. SLC – outright purchase of land is better than lease; xx. LC – all Satowan leaders should sign the letter supporting the use of land for the project. Closing : Following questions and answers, the Chairman of the Energy Working Group thanked all who attended, and the Consultant for his presentation and contribution to the discussion. He then closed the consultation meeting. Minutes compiled by Sam Sesega SEDAP/ESDP – Safeguards Specialist ********* 82 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 83 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 Annex 14: Report of Consultations in Kosrae 12 October 2018 October 12, 2018 “Consultation Meeting Among Kosrae State Stakeholders on the Sustainable Energy Development and Access Project Under World Bank” This meeting was held at on the above date at the Governor’s Conference Room at 10:00 a.m. This meeting was chaired by the Kosrae Energy Taskforce Lt. Governor Sigrah. The purpose of the meeting and description of the Kosrae Energy taskforce was made by Kosrae Utilities Authority General Manager Fred Skilling. Kosrae Energy Taskforce consists of three (3) members appointed by Governor Jackson and they are Lt. Governor Sigrah, GM Fred Skilling, and KUA Board of Directors Chairman Lipar George. A welcoming remark was delivered by Governor Jackson to all stakeholders. Stakeholders are listed on the invitation letter attached to this report. After the presentation made by GM Fred Skilling on the above subject matter, the floor was open for questions and concerns regarding the presentation. Some of the questions/concerns or comments raised were as follows: STAKEHOLDERS PARTICIPATION COMMENT  That the participation of all the stakeholders is necessary for World Bank Grant requirements. FUNDING CONCERNS  What was used to determine the funding distribution to all the FSM States? Could the distribution of funds based on each state’s population? RENEWABLE ENERGY (RE) CONCERNS  Can the Increasing of Renewable Energy source lower the electricity rate to citizens?  Could the 4 years plan of increasing 30% of RE be lesser? The State leadership and Stakeholders to prioritize timing of increasing RE an important issue to discuss.  How much MWH or KWH we generate per day?  How much KWH or MWH can store up in the storage battery?  How much Solar PV is in operation? SCADA CONCERNS  Would there be an automatic switch on the SCADA that can be automatically open on the SCADA when there is a problem detected or identified in a particular area? ENVIRONMENTAL IMPACT CONCERNS/COMMENTS  An Environmental Impact Assessment (EIA) and a Waste Management Plan needs to be submitted to Kosrae Island Resource Management Authority (KIRMA) for review regarding the Battery Storage Facility.  Since a Lithium Ion will be used for the Battery Storage, a review of this matter will be made by KIRMA and its board of directors.  Waste management system is well operated and managed by KIRMA, therefore World Bank Projects could run and approved, and let KIRMA to handle the waste management system. KIRMA is recognized for their waste management efforts and accomplishments. WORLD BANK PROJECTS EMPLOYMENT OPPORTUNITY CONCERN  Are there any employment opportunities on the upcoming World Bank projects? 84 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 OTHER UNRELATED CONCERNS  KUA should put concrete to electric poles from the ground to a height of 6 feet tall to prevent breaking of electrical poles.  A request was made to KUA to give an update and progress on the ADB Project at Walung mini grid and electrical installation. A closing remark was made by the Kosrae State Legislature Speaker Palik thanking the leadership of Kosrae State stakeholders for their participation in this meeting. Speaker Palik also acknowledged KUA and Management with better improvement on services on the island. 85 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 Annex 15: Report of Consultations Pohnpei 12 October 2018 FSM Energy Sustainable Energy Development and Access Project Stakeholder Meeting Minutes Venue: Governor’s Conference Room Date October 12, 2018 Time: 10:00 A.M. Participants: The Hon. Marcelo Peterson Governor, Pohnpei State Government Mr. John Adolph Vice-Chairman, PUC Board of Directors Mr. Noel Commendador FSMRD, Energy Sector Mr. Nixon Anson General Manager/CEO, PUC Mr. Alex Nanpei Manager, PUC Engineering Services Mr. Sinakot Pelep Manager, PUC Management Information System Mr. Sidney Kilmete Manager, PUC Renewable Energy Ms. Kyoko Talley Office of Fisheries and Aquaculture, Pohnpei State Government Mr. Dackson Solomon Manager, PUC Power Generation Mr. Patrick Blank Palikir Consultants Mr. Henry Susaia Administrator, Pohnpei Environmental Protection Agency Mr. Rex Prosia Jr. Office Transportation & Infrastructure (T&I), Pohnpei State Government Mr. Nicholson Solomon Director, Department of Resources & Development, Pohnpei State Gov and Chairman, Pohnpei State Energy Working Group Mr. Jesse Henry Pohnpei Transportation Authority Mr. William Kostka Executive Director, Micronesian Conservation Trust Mr. Ricky Lebehn Acting Administrator, Office of T&I , Pohnpei State Government Record of Meeting: Mr. Nicholson Solomon to say a word of prayer before proceeding with the meeting. Mr. Nixon Anson, opened the meeting as the Chairman by welcoming everyone and that the stakeholders participation is a requirement by the World bank. Meeting proceeded with Mr. Anson presenting an overview and update of SEDAP, IDA 18 Funding for Pohnpei state under Component 1: Improving Reliability of Electrical Supply in Pohnpei. The component will finance medium speed gensets with capacity totaling 7.5MW. The total budget is $12,000,000 USD. The concept note for the project was approved in February 2018. The Project is in line with the Energy Master plan that was produced under Energy Sector Development Plan IDA 16 Funding. He also, informed that IDA 16 request for extension was approved and extended to September 2019. Mr. Anson also presented the Master Plan road map showing how this project (SEDAP, Component 1) is line with the goals set in the Master plan. Mr. Anson further presented the scope of work for the project. The new gensets will be installed at the existing power plant site in NPP2 and NPP3 now decommissioned. The project includes the engineering and design, procurement and delivery of genset, demolition, rehabilitation and preparation of site, Installation of new genset, Waste oil removal, construction of waste oil storage tanks for recycling or disposal, project management, testing and commission and project management control. The component will also finance an in house electrical engineer to oversee the quality control of the project. He informed the committee that the engineering and design will be contracted to Castalia through a Change Order for Additional work for their Master Plan and Energy Assessment Contract. 86 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 Mr. Anson also, discussed the benefits and environmental concerns:  Social Impact- He pointed out that the project will not cause any resettlement of communities because it will be built within the bounds of the existing power plant.  Environment pollution– Waste oil will be disposed of according to required regulation. A Temporary holding will be constructed on site to hold used oil until it is either recycled or shipped out.  Noise Pollution- Design will address noise attenuation for the new gensets to keep noise level within acceptable level for the neighboring communities.  Benefits will be realized through more efficient generators burning less fuel at increased Kw output which translate to fuel saving. Cost of fuel is the driving factor for high cost of energy to the customer. Mr. Anson opened the floor the Question and comments. Mr. Patrick Blank; Will be expect lower cost of energy/Cashpower? Mr. Anson replied with the comments he state earlier regarding fuel saving. Currently PUC efficiency is at 13KW/Gallon and estimated that with the new power plant efficiency can increase to 16 - 17KW/gallon. Mr. Henry Susaia commented on the Waste Oil and informed the committee that they are working with SPREP to address the waste oil issues for Pohnpei State. Initial works are underway with Vital Energy (FSMPETRO) for the removal of waste oil. SPREP is also looking into funding the construction of waste oil tanks at the dumpsite and is working with Pohnpei Waste Management. Waste oil will be stored at the dump site for ease of access to shipping vessels. Since SPREP is already financing waste oil tanks at the dumpsite, Mr. Susaia suggested PUC to recommend that the funding the construction of waste oil tank at the Power plant to co-fund the waste oil tank at the dumpsite. Mr. Anson took note of that suggestions. Miscellaneous items: Mr. William Kostka complimented on the overall progress being done for the Energy sector and wishes to know the status of the EU EDF 11 for stand-alone solar systems for the outer island. Mr. Anson informed that Under EDF 11, $1,000,000 is earmarked for the project and waiting for the completion of a feasibility study. The budget for the study is $100,000 and will be financed by IDA 18. Mr. Susaia raised a concern for proper disposal of batteries on the outer island. Governor informed that the new stand-alone system will be owned by PUC who will ensure batteries are disposed of safely. Governor Peterson requested an update on the renewable energy projects currently in the works. Mr. Anson updated the progress of the solar.  PUC has signed a Power Purchase Agreement with KSEL for a 3MW solar with 1MWh Battery storage. Expected completion is July 2019  New Zealand 300 KW Solar to start work early November and completed by March 2019.  GCF 2.7KW Hydro – Feasibility Study underway.  Waste Heat to Energy – PUC was awarded $2.9M for procurement and installation of Waste heat to energy. Before adjourning, Mr. Anson thanked everyone for their participation and inputs. A Special recognition was given to the Governor and Director of RD for their support. Meeting was adjourned at 11:30 A.M. Prepared by: PUC 87 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 88 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 Annex 16: Report of Consultations in Yap, 12 October 2018 Sustainable Energy Development and Access Project (SEDAP) Yap Consultation 12 October 2018 World Bank Grant Project (Under IDA18) 1. One CAT Genset 800kWp  This is to assist current peak-load genset as redundancy plant.  Alternating between 2 peak-load genset will prolong the life of the gensets … 10 to 20yrs 2. Installation of ComAp controller is also part of this project integrating it into the current hybrid power system 3. This will allow YSPSC to introduce more R.E into the energy mix, and save on diesel fuel costs, and provide as security against the volatility of fossil fuel cost. 4. Project Budget 1.3M 5. Environmental issues  Accumulation of waste Oil  Waste Oil shed have been built to safeguard from elements  Separation tanks is built to capture leaks both from waste oil shed and day tank  More R.E … less fossil fuel and oil to be used for generation Summary of Discussion After briefing the stakeholders on the points, the discussion continued on several issues like; how the current peak load differs from say several years back. It was explained to the stakeholders that demand has gradually decrease over the years as customers are trying to keep their usage at minimal, and that there is a lack in the economic growth for the State. One of the issue that the stakeholders were interested in was the Integration and control and so the whole group (YSPSC) contributed in explaining how it’s all working and the importance of it being a part of the new genset discussed. Director of R&D shared to the group that there is a Waste Oil Project on the horizon at the National level and although it is too early in the project for the Director to go into details of the project, he did mention that such project may be coming forth from SPREP. All in all, the meeting went well and the stakeholders appreciated the updates. 89 FSM (SEDAP)) Environmental and Social Management Plan (ESMP) Rev C October 2018 YSPSC Attendance Sheet 90