The World Bank Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects (P171248) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 09/10/2019 | Report No: ESRSA00250 Sep 29, 2019 Page 1 of 12 The World Bank Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects (P171248) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Tajikistan EUROPE AND CENTRAL ASIA P171248 Project Name Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Energy & Extractives Investment Project 9/27/2019 Financing Borrower(s) Implementing Agency(ies) Ministry of Finance Pamir Energy Company, Ministry of Energy and Water Resources Public Disclosure Proposed Development Objective(s) The project development objectives are to improve the implementation readiness of the Rural Electrification, Sebzor HPP, and Khorog-Qozideh power transmission line projects. Financing (in USD Million) Amount Total Project Cost 0.50 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] Preparation of environmental and social documents required for Rural Electrification, Sebzor HPP, and Khorog- Qozideh transmission line projects consistent with requirements of project financiers; update of the feasibility study for Sebzor HPP to address specific technical issues and fill in the gaps; completion of feasibility study for Khorog- Qozideh power transmission line; disaster risk screening and mitigation assessment for PEC energy assets; Sep 29, 2019 Page 2 of 12 The World Bank Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects (P171248) preparation of bidding documents for construction of Sebzor HPP; capacity building for PEC in construction, operation, and maintenance of renewable energy based micro grids. D. Environmental and Social Overview D.1. Project location(s) and salient characteristics relevant to the ES assessment [geographic, environmental, social] Tajikistan is a small landlocked country in the heart of Central Asia, bordering Afghanistan, China, the Kyrgyz Republic, and Uzbekistan. It is one of the four countries which qualify for the World Bank’s support under its Risk Mitigation Regime (RMR) aimed at addressing the impacts by fragility, conflict, and violence (FCV). The RMR pilots the use of development interventions for providing additional financing to target FCV risks and reinforce sources of resilience. The Rural Electrification Project (REP) is one of three projects approved for such financing in Tajikistan covering two of the highly sensitive FCV regions- GBAO and Khatlon. REP is addressing the risks as a part of the social and environmental management by adopting the Bank’s Environmental and Social Standards (ESS) approach. The Environmental and Social Reviews (ESRS) has classified environmental and social risks of the project as substantial. This Technical Assistance (TA), provided through a Recipient Executed Trust Fund, is to supplement/complement the preparatory activities for REP, the Sebzor HPP project, and 63 km of transmission lines --through the preparation of key environmental and social studies as well as institutional assessments in GBAO. ----------------------------------------------------------------------------- GBAO is home to diverse endemic flora and fauna, including some protected species like the snow leopard; protected areas. However, natural hazards such as floods, earthquakes, landslides, mudflows, avalanches, and heavy snowfalls are quite common. GBAO account for the highest level of relative poverty measure. Unemployment of the youth and vulnerable peoples is quite high, which represents a source of instability and a potential threat for the country as a Public Disclosure whole. The economy is dependent predominantly on remittances and associated with this large scale male migration and a high number of female headed households. All these have resulted in continuous conflict and unrest, especially among youth, rendering the region unsafe. Isolated instances of attack on foreign tourists are also evident. Geographically, the regions share a pervious border of 1,300 km to the south with Afghanistan, resulting in increased illicit drug trafficking and the associated risks thereof. Thus, salient environmental and social characteristics of the project area include: (i) small, remote, population centers surrounded mountains and difficult terrain; (ii) high degree of diversity in terms of linguistic as well as political orientations; (iii) inter-regional as well as rural-urban disparities; (iv) cross border illicit trade and drug movement related scuffles; and (v) low income and employment opportunities. While the TA supports only analytical investigations, as its end usage will be reflected in hard core civil construction activities, these can become impediments during the construction stage, specially in the spheres of security and labor management and labor influx. ----------------------------------------------------------------------------------------------------------- On the power situation, Tajikistan, in general, and the GBAO, in particular, suffer from electricity supply shortages since its disconnection from the Central Asian Power System in 2011 and discontinuation of gas supply from Uzbekistan. However, this has improved significantly during the recent years. Across the country, about 0.5 percent of population (43,126) does not have access to electricity. Some of the settlements without access are relatively new given rapid growth of population in and around the existing habitations. A good number of these are located in the remote mountainous areas in GBAO where access has historically been a challenge. These areas were dependent upon diesel-based portal generators which have become prohibitively expensive and laborious. Sep 29, 2019 Page 3 of 12 The World Bank Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects (P171248) D. 2. Borrower’s Institutional Capacity The proposed TA will be executed by the Pamir Energy Company (PEC), a special purpose company, which is owned 70 percent by Aga Khan Fund for Economic Development (AKFED) and 30 percent by IFC. PEC will be responsible for the rural electrification solutions in GBAO. Additionally, PEC is responsible for carrying out additional site investigation works required for preparation of Sebzor HPP as well as preparation of the Khorog-Qozideh power transmission line project. The PEC has some experience in project implementation and management, including mitigating environmental and social risks, but, REP is the first power project in Tajikistan prepared under the Bank’s new Environment and Social Framework (ESF). It is expected that the client’s capacity to deliver an ESF based project is limited; therefore, capacity building for the client including jamoats and contractors will be included in the project ESMFs, and other environmental and social instruments to be prepared during preparation and implementation. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial Environmental Risk Rating Substantial As with the REP, the Environmental Risk Rating for this TA is also Substantial due the greenfield nature of the facilities planned, namely the Sebzor HPP and the related 18 km Sebzor-Khorog overhead transmission line TL for evacuation of energy (financed by KfW and EU), the 63 km Khorog-Qozideh TL (no financier identified yet), as well as the number of rural electrification activities in remote and potentially fragile areas. As required under ESS1, the ESMF prepared Public Disclosure under REP for PEC outline necessary screening measures and procedures for preparing site-specific ESIA/ESMPs, some of which could be supported by the TA. Social Risk Rating Substantial The Social Risk Rating is rather derivate, due to the potential down stream impacts that may arise if and when the results of this TA leads to implementing a variety of construction activities -- REP, Sebzor HPP, 63 Km transmission lines. So, risk will be the same as that of the REP, the parent project. i.e., Substantial. Risks and impacts due to the type, location, sensitivity and scale of the Project are not significant. However, contextual risks - i.e. diverse regions, common fragility, the remoteness & extremely difficult access, the border vulnerability, absence of sustainable job opportunities and income-generating activities leading to unemployment and poverty, migration & remittances consequently increased female headed households - as well as client capacity risks are substantial. Consequently, security risks to contractors and laborers as well as migrant laborers and community safety to warrant serious attention. All of these will have a bearing on all the project’s activities (including the associated activities-dealt in a later section): (i) site investigations for Sebzor hydro power plant, which is an associated facility; (ii) off grid supplies to remote households; (iii) last mile connections for residential consumers; and (iv) improving connectivity through transmission/ distribution lines. No major physical displacement or land acquisition is expected since the proposed Sebzor HPP, as a run-of-river HHP, will not involve a construction of a large reservoir but will consists of a small weir to divert water to a power house through a canal and two penstocks, before returning to the river downstream. The associated facility would entail the construction of a weir, a power house and associated infrastructure including transmission line would be conducted by international contractors, which assumes some labor influx. So, Occupational Health and Safety as well as Community Health and Safety will also assume importance. Off-grid power Sep 29, 2019 Page 4 of 12 The World Bank Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects (P171248) supplies is highly dependent upon provision of alternative technologies and the project’s outreach to isolated and scattered houses/ settlements. Else, these houses may get excluded.. Transmission/ distribution lines essentially would mean erecting towers which warrants land acquisition, which can be managed. Thus, the risks vary across the various components. While the associated facilities (hydro-power plant and transmission line construction) bear Substantial risk, other interventions are likely to be Moderate. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: This TA is meant to provide technical assistance in the form of consultancies to supplement and complement preparatory activities as required for the REP. Given the potential down stream impacts likely to occur, the overall environment and social risk level is Substantial, due chiefly to, contextual risks and civil works related environmental disturbances, and the resultant risks of security to contractors & laborers and community safety. Towards addressing these, following extensive consultations and analytical enquiry, the client has prepared the following instruments: (i) Environmental and Social Impact Assessments (ESIA) and Environmental and Social Management Plans (ESMPs) for the Sebzor HPP and identified transmission lines (18 km TL and 63 km TLs); (ii) Environmental and Social Management Frameworks for off-grid solutions; (iii) Stakeholder Engagement Plans (SEP) separately prepared by two implementation agencies (BT in Khatlon and PEC in GBAO); (iv) Resettlement Policy Framework (RPF) that cover Khatlon Last-Mile Connections, GBAO Off-Grid Solutions and Last-Mile Connections, Sebzor HHP (associated facility), Public Disclosure 110kV Transmission Line from Sebzor to Khorog and 110kV Transmission Line from Khorog to Qozideh (associated facilities); and (v) Labor Management Procedures (LMPs), separately prepared by BT and by PEC. Environmental risks are limited to the impacts associated with weir, hydro-power plant, and transmission line construction (associated facilities), and rural electrification projects such as: (i) air pollution and noise from trucks and other construction machinery, concrete and asphalt plants; (ii) soil disturbance during earthmoving and material (gravel/sand/soil) extraction; (iii) tree-cutting and loss of vegetation; (iv) generation and disposal of construction and household solid waste; and (v) construction camp and quarry/burrow management. Social risks are derivate, due to down stream implications chiefly relate to resettlement and labor management. Former emanate as some of the activities during implementation would require lands which may result in permanent and temporary impacts. While the construction of Sebzor HPP (associated facility) as well as off-grid electrification and last-mile connections will unlikely require significant land acquisition or physical displacement, construction of transmission lines may cause some physical and economic displacement. However, currently, full details about the requirement of lands are not known. As a result, it Is not possible to identify in detail the persons likely to be affected and the impacts thereof. Hence a resettlement policy framework (RPF) has been prepared which will be expanded and resettlement action plans (RAP) prepared during implementation. Consequently, the client has prepared, apart from RPF, the following instruments have prepared: stakeholder engagement, and labor management procedures. Exclusion risks are considered low since the project will provide off-grid electrification and last-mile connections support to all communities in the project area. Sep 29, 2019 Page 5 of 12 The World Bank Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects (P171248) Documentation and information available and reviewed as part of E&S screening are as follows: 1. “Tajikistan: Country Economic Update, Spring 2018.” World Bank, Washington, DC. 2. OECD State of Fragility Report, 2018. 3. Tajikistan Risk and Resilience Assessment, World Bank, Washington, DC, 2017. 4. Jobs Diagnostic Tajikistan, World Bank, Washington, DC, 2017. 5. Dodwell, Brian, Daniel Milton, and Don Rassler. The Caliphates Global Workforce: An Inside Look at the Islamic States Foreign Fighter Paper Trail. United States Military Academy Combating Terrorism Center West Point United States, 2016. Toktomushev, Kemel. "Promoting Social Cohesion and Conflict Mitigation: Understanding Conflict in the Cross-Border Areas of Kyrgyzstan and Tajikistan." (2017). 6. Government of Tajikistan. State Committee of National Security, presentation to Parliamentary Session on “Prevention of youth involvement in terrorist organization and implementation of the Law in the Republic of Tajikistan”, November 7, 2018. http://saidomardum.tj/ma-lisi-ol/peshgirii-albi-avonon-ba-tashkiloti-terrorist-vazifai- omeai-sha-rvand-niz-ast/ https://eurasianet.org/s/tajikistan-former-students-of-islam-return-to-nothing 7. World Bank. 2017. “REDUCING MULTI-HAZARD RISKS ACROSS TAJIKISTAN: Protecting Communities Through Quality Infrastructure. ESS10 Stakeholder Engagement and Information Disclosure Given the highly diverse stakeholder profile and that their expectations and orientation as well as capacity to interface with the project are different, a Stakeholder Engagement Plan (SEP) has already been developed under the Public Disclosure REP. This has enabled the project to identify elaborately different stakeholders and provide an approach towards reaching each of the sub groups. The local communities and individual households who currently lack electricity supplies are likely to be the major beneficiaries viz., direct affected parties. Other Parties include: utility companies, local administration, traders and small and medium enterprises. SEP details out the type of consultations to be held (during preparation as well as implementation), frequency and methods of communication. It has also identified impediments in reaching out to stakeholders and accordingly plans drawn to build capacity of the client in engaging with stakeholders.. A draft of the SEPs has been disclosed publicly. These TA studies will draw upon the approved SEP as deemed appropriate. A Grievance Redressal Mechanism (GRM) has also been developed to enable stakeholders air their concerns/ comments/ suggestions, if any. The SEP thus prepared will be deployed for this TA as well. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions PEC has already prepared a LMP for the parent project. As PEC will be managing the TA enlisting consultants, same LMP will be applicable to the consultants. All consultants will be deployed using the World Bank’s standard procurement procedures. ESS3 Resource Efficiency and Pollution Prevention and Management Sep 29, 2019 Page 6 of 12 The World Bank Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects (P171248) The TA bears no impacts and risks related to ESS 3. However, TORs and analytical studies prepared will include requirements of the ESS 3 as appropriate. ESS4 Community Health and Safety The TA bears no impacts and risks related to ESS 4. However, TORs and analytical studies prepared will include requirements of the ESS 4 as appropriate. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement As the TA entails only consultancy studies, it will have no impacts on Land. However, as the resultant plans - RAP- will be land based, TORs and analytical studies will include requirements of the ESS 5 as appropriate. RAP will adopt and comply with the provisions laid out in ESS 5. RPF for the parent project has already been prepared and the TORs will follow the same provisions. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources Given fact that the TA is being used to support development of power options in GBAO, the action plans following assessments and investigations prepared under the TA may cover elements related to ESS 6, as appropriate. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities Public Disclosure Based on the screening against ESS 7, this ESS is not considered relevant to the TA. ESS8 Cultural Heritage Given fact that the TA is being used to support preparation of power sector investments in GBAO, environmental instruments prepared and/or upgraded under the TA may address elements related to ESS 8, including chance find procedures, as appropriate. ESS9 Financial Intermediaries This standard is not currently relevant as no financial intermediaries are party to the project implementation modality. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways Yes OP 7.60 Projects in Disputed Areas No Sep 29, 2019 Page 7 of 12 The World Bank Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects (P171248) III. BORROWER’S ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) DELIVERABLES against MEASURES AND ACTIONs IDENTIFIED TIMELINE ESS 1 Assessment and Management of Environmental and Social Risks and Impacts FINAL ESIA/ESMP – SEBZOR HPP AND TRANSMISSION LINE to KHROG SUBSTATION: The final ESIA/ESMP will be completed in conjunction with the final design of the Sebzor HPP and the related transmission line. The document will be consulted on, reviewed by KfW, as the primary financier, and 09/2020 the World Bank as well as SECO. The final ESIA/ESMP will be disclosed prior to issuing the bidding documents. This is an associated facility being financed by KfW applying the World Bank’s ESF. FINAL ESIA – KHOROG-QOZIDEH TRANSMISSION LINE: Once funding is identified, the final ESIA/ESMP will be completed in conjunction with the final design of the transmission line. The document will be consulted on, reviewed by the appropriate financing agency(ies), including the World Bank as long as 12/2020 the activity continues to be associated with this Project, and disclosed prior to issuing the bidding documents. This is an associated facility being proposed for financing to SECO. It is expected to t ESS 10 Stakeholder Engagement and Information Disclosure Per the REP SEP, TA will ensure engagement with stakeholders. Deliberations of each meetings will be documented and disclosed. Specially, issues raised in the stakeholder meetings and the way they are 03/2020 addressed will also be documented and disclosed. Public Disclosure ESS 2 Labor and Working Conditions Adopting and adhering to the stipulations listed in the REP LMP. 09/2020 ESS 3 Resource Efficiency and Pollution Prevention and Management ESS 4 Community Health and Safety ESS 5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Resettlement Policy Frameworks (RPF): Update Resettlement Policy Frameworks (RPF) for the projects 12/2019 based on the initial RPF prepared during the Rural Electrification Project Preparation. Resettlement Action Plan (RAP): Prepare a Resettlement Action Plan (RAP) for the Sebzor HPP. 09/2020 ESS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources BIODIVERSITY STUDY FOR SEBZOR HPP: Prepare a Biodiversity Study that details local flora and fauna, including fish and other aquatic life that might be affected, in accordance with TORs agreed with KfW 09/2020 and the Association. ESS 7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities Sep 29, 2019 Page 8 of 12 The World Bank Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects (P171248) ESS 8 Cultural Heritage As required by the initial ESMF and ESIA/ESMP, reporting on chance finds, if any, discovered during 09/2020 technical investigations. ESS 9 Financial Intermediaries B.3. Reliance on Borrower’s policy, legal and institutional framework, relevant to the Project risks and impacts Is this project being prepared for use of Borrower Framework? No Areas where “Use of Borrower Framework” is being considered: TA will not use any of the Borrower's Framework for either the conduction of the studies or in the resultant implementation action plans. IV. CONTACT POINTS World Bank Contact: Artur Kochnakyan Title: Senior Energy Specialist Public Disclosure Telephone No: 202-473-6302 Email: akochnakyan@worldbank.org Borrower/Client/Recipient Borrower: Ministry of Finance Implementing Agency(ies) Implementing Agency: Pamir Energy Company Implementing Agency: Ministry of Energy and Water Resources V. FOR MORE INFORMATION CONTACT Sep 29, 2019 Page 9 of 12 The World Bank Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects (P171248) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects Public Disclosure Sep 29, 2019 Page 10 of 12 The World Bank Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects (P171248) VI. APPROVAL Public Disclosure Sep 29, 2019 Page 11 of 12 The World Bank Support for Preparation of the Rural Electrification, Sebzor HPP and Khorog-Qozideh Power Transmission Line Projects (P171248) Task Team Leader(s): Artur Kochnakyan Practice Manager (ENR/Social) Kevin A Tomlinson Cleared on 10-Sep-2019 at 17:16:56 EDT Public Disclosure Sep 29, 2019 Page 12 of 12