[Title] Environmental and Social Framework
Annex:
Environmental and Social Policy and Environmental and Social Standards
Environmental and Social Policy
Purpose
1. Overarching Policy. The Bank recognizes that environmental and social sustainability is a fundamental aspect of achieving outcomes consistent with its mandate to support infrastructure development and enhance interconnectivity in Asia. The objective of this overarching policy is to facilitate achievement of these development outcomes, through a system that integrates sound environmental and social management into Projects.
2. Environmental and Social Policy Including Environmental and Social Standards. This overarching policy comprises:
Environmental and Social Policy. An environmental and social policy (ESP), which sets forth mandatory environmental and social requirements for each Project.
Environmental and Social Standards. The following three associated environmental and social standards (ESSs), which set out more detailed mandatory environmental and social requirements relating to the following:
ESS 1: Environmental and Social Assessment and Management (ESS 1);
ESS 2: Involuntary Resettlement (ESS 2); and
ESS 3: Indigenous Peoples (ESS 3).
Environmental and Social Exclusion List. An Appendix to the ESP that provides an Environmental and Social Exclusion List.
Glossary. A glossary with definitions of certain terms used in the ESP and ESSs.
3. An Approach for Environmental and Social Management. Together, the ESP and ESSs comprise an environmental and social management approach designed to:
Support decision-making by the Bank.
Provide a robust structure for managing operational and reputational risks of the Bank
and its shareholders in relation to environmental and social risks and impacts in Projects.
Provide for environmental and social screening and categorization of Projects.
Analyze potential environmental and social risks and impacts of Projects.
Identify actions to avoid, minimize, mitigate, offset or compensate for environmental and social impacts of Projects.
Support integration of environmental and social management measures into Projects.
Specify environemntal and social management provisions to be included in agreements governing Projects.
Provide a mechanism for public consultation and disclosure of information on environmental and social risks and impacts of Projects.
Provide for monitoring and supervision of environmental and social management measures under Projects.
Facilitate development and dissemination of lessons learned from Projects to improve environmental and social management practices.
4. Support for Clients.The ESP(including the associated ESSs) sets out the requirements for Clients relating to identification and assessment of environmental and social risks and impacts associated with Projects supported by the Bank. The Bank believes that the application of the ESP and ESSs, by focusing on the identification and management of environmental and social risks and impacts, will support Clients in achieving good international practice relating to environmental and social sustainability; assist Clients in fulfilling their national and international obligations relating to environmental and social risks and impacts; enhance non- discrimination, transparency, participation, accountability and governance; and enhance sustainable development outcomes of Projects through ongoing stakeholder engagement.
Definitions
5. As used in the ESP and ESSs, the following terms have the meanings set out below:
Client means the recipient of the Bank financing for a Project and any other entity responsible for implementation of the Project.
Project means the specific set of activities for which the Bank financing is provided, as defined in the agreement governing such financing, regardless of the financing instrument or the source of such financing or whether the Project is financed in whole or in part by the Bank.
6. Other terms used in the ESP and ESSs are defined in the text below, in the ESSs and in the attached Glossary.
Scope of Application
7. All ProjectThe ESP applies to all Projects. The Bank requires each Client to manage the environmental and social risks and impacts associated with its Project in a manner designed to meet the ESP and the applicable ESSs in accordance with the environmental and social management plan (ESMP), and environmental and social management planning framework (ESMPF), as applicable, required for the Project under this ESP and ESSs.
8. Funds Administered by the Bank. If a Project is financed using funds provided by other financiers and administered by the Bank,*1* the Bank may agree to apply additional requirements of the other financiers relating to environmental or social risks and impacts, provided that the Bank determines that they are materially consistent with its Articles of Agreement, the ESP and ESSs.
9. Additional Country Requirements. If the Bank determines that the relevant environmental and social requirements of the country in which the Project is located are more stringent than the requirements of the ESP or ESSs, the country’s own requirements will apply, provided that they are not in violation of the Bank’s Articles of Agreement.
10. Development Partner Policies. The Bank may agree, on a case-by-case basis, to the application of the environmental and social policies and procedures of multilateral development banks and bilateral development organizations who are co-financing the Project, provided that the Bank is satisfied that they are consistent with the Bank’s Articles of Agreement and materially consistent with the ESP and ESSs, and that appropriate monitoring procedures are in place. In such cases, the Bank may rely on these co-financiers’ determination as to whether compliance with their policies and procedures has been achieved under this approach.
Requirements
A. Screening and Categorization
11. Purpose of Screening and Categorization. The Bank screens and categorizes each proposed Project to determine the nature and level of the required environmental and social review, type of information disclosure and stakeholder engagement for the Project. The categorization takes into consideration the nature, location, sensitivity and scale of the Project, and is proportional to the significance of its potential environmental and social risks and impacts. As part of this process, the Bank also screens the Project to determine which of the ESSs applies. In cases where environmental and social assessment work may already have been carried out for the Project, the Bank reviews the work, and in consultation with the Client, determines whether any additional environmental or social work is required.
12. Categorization. The Bank determines the Project’s category by the category of the Project’s component presenting the highest environmental or social risk, including direct, indirect, cumulative and induced impacts, as relevant, in the Project area. The Bank conducts a review of environmental and social risks and impacts associated with the Project, regardless of the categorization being considered. As an element of the categorization process, the Bank may conduct field-based review of the Project to provide for a refined understanding of the environmental and social risks and impacts and support the Client’s preparation of a site- specific approach to assessment of these risks and impacts. The Bank may adjust the categorization during the life of the Project, if warranted by changes in the environmental and social risks and impacts.
9. Additional Country Requirements. If the Bank determines that the relevant environmental and social requirements of the country in which the Project is located are more stringent than the requirements of the ESP or ESSs, the country’s own requirements will apply, provided that they are not in violation of the Bank’s Articles of Agreement.
10. Development Partner Policies. The Bank may agree, on a case-by-case basis, to the application of the environmental and social policies and procedures of multilateral development banks and bilateral development organizations who are co-financing the Project, provided that the Bank is satisfied that they are consistent with the Bank’s Articles of Agreement and materially consistent with the ESP and ESSs, and that appropriate monitoring procedures are in place. In such cases, the Bank may rely on these co-financiers’ determination as to whether compliance with their policies and procedures has been achieved under this approach.
Requirements
A. Screening and Categorization. 11. Purpose of Screening and Categorization.. The Bank screens and categorizes each proposed Project to determine the nature and level of the required environmental and social review, type of information disclosure and stakeholder engagement for the Project. The categorization takes into consideration the nature, location, sensitivity and scale of the Project, and is proportional to the significance of its potential environmental and social risks and impacts. As part of this process, the Bank also screens the Project to determine which of the ESSs applies. In cases where environmental and social assessment work may already have been carried out for the Project, the Bank reviews the work, and in consultation with the Client, determines whether any additional environmental or social work is required.
12.Categorization. The Bank determines the Project’s category by the category of the Project’s component presenting the highest environmental or social risk, including direct, indirect, cumulative and induced impacts, as relevant, in the Project area. The Bank conducts a review of environmental and social risks and impacts associated with the Project, regardless of the categorization being considered. As an element of the categorization process, the Bank may conduct field-based review of the Project to provide for a refined understanding of the environmental and social risks and impacts and support the Client’s preparation of a site- specific approach to assessment of these risks and impacts. The Bank may adjust the categorization during the life of the Project, if warranted by changes in the environmental and social risks and impacts.
13. Categories. The Bank assigns each proposed Project to one of the following four categories:
Category A. A Project is categorized A if it is likely to have significant adverse environmental and social impacts that are irreversible, cumulative, diverse or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works and may be temporary or permanent in nature. The Bank requires the Client to conduct an environmental and social impact assessment (ESIA) or equivalent environmental and social assessment, for each Category A Project and to prepare an ESMP or ESMPF, which is included in the ESIA report for the Project. The ESIA for a Category A Project examines the Project’s potentially negative and positive environmental and social impacts, compares them with those of feasible alternatives (including the “without Project” situation), and recommends any measures needed to avoid, minimize, mitigate, or compensate for adverse impacts and improve environmental and social performance of the Project.
Category B. A Project is categorized B when: it has a limited number of potentially adverse environmental and social impacts; the impacts are not unprecedented; few if any of them are irreversible or cumulative; they are limited to the Project area; and can be successfully managed using good practice in an operational setting. The Bank requires the Client to conduct an initial review of the environmental and social implications of the Project. On the basis of this review, the Bank, in consultation with the Client, determines the appropriate instrument for the Client to assess the Project’s environmental and social risks and impacts, on a case-by-case basis. The Bank may determine that an environmental and social assessment or another similar instrument is appropriate for the Project. The scope of the assessment may vary from Project to Project, but it is narrower than that of the Category A ESIA. As in the case of a Category A Project, the assessment examines the Project’s potentially negative and positive environmental impacts and recommends any measures needed to avoid, minimize, mitigate, or compensate for adverse impacts and improve environmental performance of the Project.
Category C. A Project is categorized C when it is likely to have minimal or no adverse environmental and social impacts. The Bank does not require an environmental and social assessment, but does require the Client to conduct a review of the environmental and social implications of the Project.
Category FI. A Project is categorized FI if the financing structure involves the provision of funds to or through a financial intermediary (FI) for the Project, whereby the Bank delegates to the FI the decision-making on the use of the Bank funds, including the selection, appraisal, approval and monitoring of Bank-financed subprojects. The Bank requires the FI Client, through the implementation of appropriate environmental and social policies and procedures, to screen and categorize subprojects as Category A, B or C, review, conduct due diligence on, and monitor the environmental and social risks and impacts associated with the Bank-financed subprojects, all in a manner consistent with this ESP. A Project categorized as FI is also subject to: (a) the Environmental and Social Exclusion List and applicable host country national laws for all the Bank-financed subprojects; and (b) the applicable ESSs for the Bank-financed subprojects that are classified as Category A subprojects (and if the Bank so determines,some or all of the Bank-financed subprojects that are classified as Category B subprojects).
14. Strategic, Sectoral and Regional Assessment. On a case-by-case basis and in consultation with the Client, the Bank may require the Client to undertake a strategic, sectoral or regional assessment, a cumulative impact assessment or other specialized assessment, for the Project.
15. Combined Review. The Bank bases its categorization of the Project on a combined review of both environmental and social risks and impacts. In reviewing the social risks and impacts of the Project, it pays special attention to the vulnerability of various types of potentially affected people.*2*
B. Environmental and Social Due Diligence
16. An Element of Appraisal. The Bank conducts environmental and social due diligence, as an integral element of its appraisal of the Project, and in a manner that is: (a) appropriate to the nature and scale of the Project; and (b) proportional to the level of the Project’s potential environmental and social risks and impacts. This element of the appraisal supports decision- making by helping the Bank decide whether to finance the Project and, if so, the manner in which it requires the Client to address environmental and social risks and impacts in the planning and implementation of the Project. The Bank’s due diligence may involve both field- based and desk review, which may be supplemented by the use of independent consultants.
17. Review Process. As part of its due diligence, the Bank reviews the Client’s environmental and social assessment and documentation in order to determine the extent to which: (a) all key potential environmental and social risks and impacts of the Project have been identified; (b) effective measures to avoid, minimize, mitigate, offset or compensate for the adverse impacts are incorporated into the Project’s design and ESMP; (c) the Client understands the requirements of the ESP and ESSs and has the commitment and capacity, or has made arrangements to strengthen its capacity, necessary to manage the Project’s environmental and social risks and impacts adequately; (d) the role of third parties is appropriately defined in the ESMP; and (e) consultations with affected people are conducted in accordance with requirements of the ESP and ESSs. The Client is responsible for ensuring that all relevant information is provided in a timely manner to the Bank so that the Bank can fulfill its responsibility to undertake environmental and social due diligence in accordance with the ESP.
18. Application of ESP and ESSs. Also as part of its due diligence, the Bank: (a) assesses whether the Project can be implemented in accordance with the ESP and ESSs; (b) assesses the Project’s potential reputational risks to the Bank: (c) considers the costs and responsibilities for mitigation and monitoring measures; and (d) reviews the timing of mitigation and monitoring activities in the schedule for implementation of the Project. The Bank may retain independent consultants to assist in its due diligence.
19. Review of Information. The Bank recognizes that Projects may have different levels of information regarding the environmental and social risks and impacts available at the time the Bank carries out its due diligence. In such circumstances, as part of its due diligence, the Bank assesses the risks and impacts of the proposed Project based on the information that is available to it, together with an assessment of: (a) the risks and impacts inherent in projects of the type proposed for financing and the specific context in which the proposed Project will be developed and implemented; and (b) the capacity and commitment of the Client to develop and implement the Project in accordance with the ESP and ESSs. The Bank assesses the significance of the gaps in information, and the potential risk this may present to achieving the objectives of the ESP and ESSs. The Bank reflects this assessment in the Project documents at the time the proposed financing is submitted for approval.
20. Supplemental Measures. The Bank’s due diligence responsibilities include, as appropriate: (a) reviewing the information provided by the Client relating to the environmental and social risks and impacts of the Project,*3* and requesting additional and relevant information where there are gaps that prevent the Bank from completing its due diligence; and (b) providing guidance to assist the Client in developing appropriate measures to address environmental and social risks and impacts in accordance with the ESP and ESSs. If the Bank determines that the assessment and planning processes or the documents require further work to comply with the requirements of the ESP or ESSs, the Bank requires the Client to undertake some or all of the following actions: (a) carry out supplemental environmental and social assessments or studies; (b) strengthen existing assessments or studies; or (c) improve the required environmental and social documentation. This process may also require the Client to undertake supplemental consultations.
21. Projects under Construction or with Permits. If the Project is under construction, or permits for the Project have been obtained, including approval of the national environmental and social impact assessment or other relevant documentation, the Bank conducts, as part of its environmental and social due diligence of the Project, a gap analysis of the Project’s design and implementation against the ESP and ESSs, to identify whether any additional studies or mitigation measures are required to meet the requirements of the ESP or the ESSs.
22. Project Changes. Changes may occur in the nature and scope of the Project following the Bank’s approval and signing of the legal agreements governing the Project’s financing. Such changes may have material environmental or social risks and impacts. In such circumstances, the Bank carries out environmental and social due diligence of the proposed changes and if it determines, on the basis of this due diligence, that any additional assessment, stakeholder consultations or environmental and social risk mitigation measures are required to meet the ESP and ESSs, it requires the Client to incorporate these measures in the Project. The Bank may also require the Project to be re-categorized.
23. Adaptive Management. In the case of Project changes, the Bank may require the Client to use adaptive management measures. The adaptive management process is set out in the ESMP or ESMPF (or both). The process specifies how such changes or circumstances are to be managed and reported. In such case, the Bank requires the Client to prepare, provide to the Bank for approval, and implement the approved adaptive management measures to address proposed Project changes or unforeseen circumstances. If there are material changes to the scope, design, implementation or operation of the Project that are likely to result in additional environmental or social risks or impacts, the Bank requires the Client to carry out an additional assessment of such changes and stakeholder engagement in accordance with the ESP and ESSs, provide to the Bank for approval mitigation measures, as appropriate, in accordance with the findings of such assessments and consultation, and then implement the approved mitigation measures. The Client is required to disclose the Project changes and mitigation measures in the manner required of it under paragraph 57 of this ESP.*4*
24. Due Diligence for FI Projects. The Bank conducts due diligence on the FI and its portfolio relevant to the Project to assess whether the FI is in a position to apply the requirements of the ESP and ESSs with respect to the Bank-financed subprojects. Specifically, the Bank assesses: (a) the FI’s existing management system and capacity, including implementation experience, as they pertain to environmental and social risks and impacts; (b) environmental and social risks and impacts associated with the FI’s existing and likely future portfolio relevant to the Project; and (c) measures necessary to strengthen the FI’s existing environmental and social policies and procedures and its capacity to implement them. The Bank undertakes selective supervision and monitoring of high-risk FI sub-projects. The Client may use a suitably qualified and experienced third party approved by the Bank to monitor subprojects.
25. Independent Experts and Advisory Panels. In the case of a Project that the Bank deems to be highly risky or contentious because of its potential environmental or social risks and impacts (or both), the Bank may require the Client to engage one or more suitably qualified and experienced internationally recognized independent experts, not affiliated with the Project, to advise the Client during preparation and implementation of the Project. Such experts may, depending on the Project, form part of an advisory panel or be otherwise employed by the Client, and provide independent advice and oversight to the Project. The Bank reviews and, following consultation with the Client, approves the appointment of each expert and all members of each independent advisory panel before they begin their tasks.
C. Environmental and Social Assessment
26. Environmental and Social Assessment. Generally, the Bank requires the Client to adopt an integrated approach to the process of assessment, given the complex interrelationships of environmental and social risks and impacts in both public- and private-sector Projects. However, the Bank recognizes that in some countries the legislation and procedures require separate environmental and social documents, making the preparation of an integrated environmental and social assessment difficult to achieve. In such cases, the Bank reviews the environmental and social documentation prepared by the Client to ensure that it provides for assessment of both environmental and social risks and impacts, as well as provisions for mitigation and monitoring.
27. Environmental and Social Standards. When the Bank has determined, in consultation with the Client, that the Project has potentially adverse environmental or social risks and impacts, it requires the Client:
To conduct an environmental and social assessment relating to these risks and impacts, and design appropriate measures to avoid, minimize, mitigate, offset or compensate for them, all as required under ESS 1.
If the Project would result in Involuntary Resettlement,*5* to address this in the social section of the assessment report, complemented by more in-depth coverage, as required under ESS 2. The Client covers Involuntary Resettlement in a resettlement plan or resettlement planning framework (RPF), which is provided to the Bank as a freestanding document, an annex to the assessment report, or incorporated into the report as a recognizable element.
If the Project would affect Indigenous Peoples,*6* to address this in the social section of the assessment report, complemented by more in-depth coverage, as required under ESS 3. The Client covers impacts on Indigenous Peoples in an Indigenous Peoples plan or Indigenous Peoples planning framework (IPPF), which is as a freestanding document, an annex to the assessment report, or incorporated into the report as a recognizable element.
28. Elements of the Environmental and Social Assessment. The bank requires the Client to undertake an environmental and social assessment that consists of the following elements in varying degrees depending on the categorization of the Project: (a) description of the Project; (b) policy, legal and administrative framework, including the international and national legal framework applicable to the Project; (c) scoping, including stakeholder identification and consultation plan; (d) analysis of alternatives, including the “without Project” situation; (e) baseline environmental and social data; (f) evaluation of environmental and social risks and impacts; (g) public consultation and information disclosure; and (h) development of mitigation, monitoring and management measures and actions in the form of an ESMP or ESMPF. The assessment considers Project and design alternatives, to avoid or minimize physical and/or economic displacement and impacts on Indigenous Peoples.
29. Scope of Analysis. The scope and depth of analysis is proportional to the nature and magnitude of the Project’s potential environmental and social risks and impacts. The environmental and social assessment applies a mitigation hierarchy to: (a) anticipate and avoid risks and impacts; (b) where avoidance is not possible, minimize or reduce risks and impacts to acceptable levels; (c) once risks and impacts have been minimized or reduced, mitigate them; and (d) where residual risks or impacts remain, compensate for or offset them, where technically and financially feasible. The Bank requires the Client to make information on the Project available during preparation and implementation, including the environmental and social assessment and ESMP (and ESMPF, if applicable), in accordance with paragraph 57 below.
30. Involuntary Resettlement. The Bank screens each Project to determine whether or not it involves Involuntary Resettlement (which covers both physical and economic displacement, as defined in ESS 2). Where it is not feasible to avoid Involuntary Resettlement, the Client is required to ensure that resettlement activities are conceived and executed as sustainable development programs, providing sufficient resources to enable the persons displaced by the Project to share in Project benefits.
31. If the Project involves Involuntary Resettlement, the Bank requires the Client to prepare a resettlement plan or RPF (as applicable) that is proportional to the extent and degree of the impacts. The degree of impacts is determined by: (a) the scope of physical and economic displacement; and (b) the vulnerability of the affected people. The resettlement plan or RPF complements the broader coverage of social risks and impacts in the environmental and social assessment and provides specialized guidance to address the specific issues associated with Involuntary Resettlement, including land acquisition, changes in land use rights, displacement and need for livelihood restoration.
32. The Bank does not endorse illegal settlement; however, it recognizes that significant populations already inhabit both urban and rural land without title or recognized land rights in its countries of operation. Given this situation, the Bank requires the Client to ensure that displaced persons without title to land or any recognizable legal rights to land, are eligible for, and receive, resettlement assistance and compensation for loss of non-land assets, in accordance with cut-off dates established in the resettlement plan, and that they are included in the resettlement consultation process.
33. Indigenous Peoples. The Bank screens each Project to determine whether or not it would have impacts on Indigenous Peoples. In conducting this screening, the Bank seeks the technical judgment of qualified social scientists with expertise on the social and cultural groups in the Project area. The Bank also consults the Indigenous Peoples concerned and the Client. If the Project would have impacts on Indigenous Peoples, the Bank requires the Client to prepare an Indigenous Peoples plan or IPPF. The level of detail and comprehensiveness is proportional to the degree of the impacts. The degree of impacts is determined by evaluating: (a) the magnitude of the impact on Indigenous Peoples’ customary rights of use and access to land and natural resources; socioeconomic status; cultural and communal integrity and heritage; health, education, livelihood systems and social security status; and indigenous knowledge; and (b) the vulnerability of the affected Indigenous Peoples. The Indigenous Peoples plan complements the broader coverage of social risks and impacts in the environmental and social assessment and provides specialized guidance to address specific issues associated with the needs of affected Indigenous Peoples.
34. Associated Facilities. Associated facilities (Associated Facilities) are activities that are not included in the description of the Project set out in the agreement governing the Project, but that the Bank determines, following consultation with the Client, are: (a) directly and materially related to the Project; (b) carried out or planned to be carried out, contemporaneously with the Project; and (c) necessary for the Project to be viable and would not be constructed or expanded if the Project did not exist.
35. Associated Facilities Controlled or Not Controlled by the Client. The Bank requires the Client, as part of its environment and social assessment, to identify and assess the potential environment and social risiks and impacts of Associated Facilities, as follows:
To the extent the Client controls or has influence over the Associated Facilities, the Bank requires it to take the following actions: (a) the Client is required to comply with the requirements of the ESP and ESSs with respect to such facilities, to the extent of its control or influence; and (b) if the Associated Facilities are financed by another multilateral development bank or bilateral development organization, the Bank may rely on the requirements of such other development partner in place of all or some of the requirements set out in the ESP and ESSs, provided that, in the Bank’s judgment, such requirements do not materially deviate from what would otherwise be required under the ESP and ESSs.
complements the broader coverage of social risks and impacts in the environmental and social assessment and provides specialized guidance to address the specific issues associated with Involuntary Resettlement, including land acquisition, changes in land use rights, displacement and need for livelihood restoration.
32. The Bank does not endorse illegal settlement; however, it recognizes that significant populations already inhabit both urban and rural land without title or recognized land rights in its countries of operation. Given this situation, the Bank requires the Client to ensure that displaced persons without title to land or any recognizable legal rights to land, are eligible for, and receive, resettlement assistance and compensation for loss of non-land assets, in accordance with cut-off dates established in the resettlement plan, and that they are included in the resettlement consultation process.
33. Indigenous Peoples. The Bank screens each Project to determine whether or not it would have impacts on Indigenous Peoples. In conducting this screening, the Bank seeks the technical judgment of qualified social scientists with expertise on the social and cultural groups in the Project area. The Bank also consults the Indigenous Peoples concerned and the Client. If the Project would have impacts on Indigenous Peoples, the Bank requires the Client to prepare an Indigenous Peoples plan or IPPF. The level of detail and comprehensiveness is proportional to the degree of the impacts. The degree of impacts is determined by evaluating: (a) the magnitude of the impact on Indigenous Peoples’ customary rights of use and access to land and natural resources; socioeconomic status; cultural and communal integrity and heritage; health, education, livelihood systems and social security status; and indigenous knowledge; and (b) the vulnerability of the affected Indigenous Peoples. The Indigenous Peoples plan complements the broader coverage of social risks and impacts in the environmental and social assessment and provides specialized guidance to address specific issues associated with the needs of affected Indigenous Peoples.
34. Associated Facilities. Associated facilities (Associated Facilities) are activities that are not included in the description of the Project set out in the agreement governing the Project, but that the Bank determines, following consultation with the Client, are: (a) directly and materially related to the Project; (b) carried out or planned to be carried out, contemporaneously with the Project; and (c) necessary for the Project to be viable and would not be constructed or expanded if the Project did not exist.
35. Associated Facilities Controlled or Not Controlled by the Client. The Bank requires the Client, as part of its
To the extent the Client controls or has influence over the Associated Facilities, the Bank requires it to take the following actions: (a) the Client is required to comply with the requirements of the ESP and ESSs with respect to such facilities, to the extent of its control or influence; and (b) if the Associated Facilities are financed by another multilateral development bank or bilateral development organization, the Bank may rely on the requirements of such other development partner in place of all or some of the requirements set out in the ESP and ESSs, provided that, in the Bank’s judgment, such requirements do not materially deviate from what would otherwise be required under the ESP and ESSs.
If the Client does not control or have influence over the Associated Activities, it identifies in the environmental and social assessment the environmental and social risks and impacts the Associated Facilities may present to the Project.
The Client is required to demonstrate, to the Bank’s satisfaction, the extent to which it does not exercise control or have influence over the Associated Facilities by providing details of the relevant considerations, which may include legal, regulatory and institutional factors.
36. Support for Quantification of Greenhouse Gas Emission. In order to support reporting on greenhouse gas emissions for implementation of the Paris Agreement, the Bank may, at the Client’s request, finance measures for the Client to quantify and report to national authorities, in accordance with internationally recognized methodologies and good practice, direct and indirect emissions from Project-related facilities.
D. Assessment Documentation and Instruments
37. Use of Appropriate Assessment Documentation. The Bank ensures that the Client prepares appropriate environmental and social assessment documents. For Category A Projects, the ESIA report or other environmental and social assessment report includes an ESMP or ESMPF (or both). For Category B Projects, the Bank, in consultation with the Client, determines the appropriate environmental and social assessment documentation required on a case-by-case basis. The environmental and social assessment for a Category B Project is narrower in scope than that for a Category A Project. If the Bank determines that a Category B Project has limited impacts with well-known mitigation and monitoring measures, it may decide, in consultation with the Client, that the only required environmental and social assessment document is an ESMP or ESMPF (or both, as applicable). In such case, potentially adverse environmental and social risks and impacts may be addressed by the use of recognized good management or pollution abatement practices.
38. A Variety of Assessment Instruments. The Bank, in consultation with the Client, determines which among a wide variety of assessment instruments may be used for the Project. A key consideration is the effectiveness of the instrument in the analysis of the environmental and social risks and impacts in the specific setting of the Project. These instruments include, but are not limited to, the following: (a) strategic environmental and social impact assessment on a policy, plan or programmatic level; (b) regional or sectoral environmental and social assessments; (c) ESIA for the Project; and (d) on a specialized basis, a cumulative impact assessment or other assessment instruments. These instruments are complemented by an ESMP or ESMPF (or both). In the case of some Projects, the Bank may determine that it is appropriate for the Client to use physical, spatial and environmental planning as tools for integration of environmental and social measures into the Project in lieu of other required instruments. Environmental audits, hazard and risk assessments, emergency response plans, among others, may also be used, as appropriate.
E. Environmental and Social Management Plan
39. ESMP. Once the Client has identified the Project’s risks and impacts through the environmental and social assessment, the Bank requires it to develop the measures to manage and mitigate the impacts and reflect them in an ESMP, all as required under ESS 1. If the Client has inadequate capacity to carry out the ESMP, the Bank requires that the Project include activities to strengthen that capacity.
40. Integration of the ESMP into the Project. To ensure effective implementation of the Project’s ESMP, the Bank requires the Client to: (a) describe specifically in the ESMP individual mitigation and monitoring measures and assignment of institutional responsibilities; (b) integrate these measures into the Project’s overall planning, design, budget and implementation schedule; and (c) where appropriate, provide for adaptive management to address issues that may arise as the Project is implemented.
41. Preparation of the ESMP. To enable the Client to prepare the ESMP for the Project, the Bank requires the Client to: (a) identify the Project’s potentially adverse impacts; (b) determine requirements for ensuring that those impacts are addressed in an effective and timely manner; (c) describe the means for meeting those requirements; and (d) disclose the draft ESMP in the manner required of it under paragraph 57 of this ESP and engage in consultation on the ESMP in the manner required of it under Section J below. If the Project involves rehabilitation, upgrading, expansion or privatization of existing facilities, remediation of existing environmental problems may be more important than mitigation and monitoring of expected impacts. In such cases, the ESMP focuses on cost-effective measures to remediate and manage these problems.
42. Elements of the ESMP. The Bank normally requires the Client to include in the ESMP: (a) mitigation measures; (b) environmental and social monitoring and reporting requirements; (c) related institutional or organizational arrangements; (d) provisions for information disclosure and consultation; (e) capacity development and training measures; (f) implementation schedule; (g) cost estimates; and (h) performance indicators. These may be presented as one or more separate plans, depending on Client requirements.
43. Implementation Schedule and Cost Estimates. For mitigation, monitoring and capacity development, the Bank requires the Client to provide in the ESMP: (a) an implementation schedule of measures that are required to be carried out as part of the Project, showing phasing and coordination with overall implementation plans; and (b) the investment and recurrent cost estimates for implementing the ESMP. These figures are also integrated into the total budget of the Project. Costs of implementation of the ESMP, including environmental and social mitigation and monitoring, resettlement and measures for Indigenous Peoples are eligible for the Bank financing if these activities are included in the Project description.
44. Monitoring Outcomes of the ESMP. The level of detail and the complexity of the ESMP should be proportional to the risks and impacts of the Project. The ESMP takes into account the experience and capacity of the parties involved with the Project. The ESMP and its related plans contain a selected set of measurable outcomes and targets or performance indicators that can be monitored on a regular basis by the Client and reviewed by the Bank.
F. Environmental and Social Management Planning Framework
45. Use of ESMPF. The Bank requires the Client to use an ESMPF if: (a) the Project consists of a program or series of activities whose details are not yet identified at the time the Project is approved by the Bank;*7* or (b) if the Bank authorizes the Client to use a phased approach in accordance with Section G below. The ESMPF includes, when applicable, an RPF and an IPPE. The purpose of the ESMPF is to ensure that the activities will be assessed and implemented in conformity with the ESP and ESSs. It sets out the policies and procedures to assess and address: (a) environmental and social risks and impacts of the activities; (b) Involuntary Resettlement that is likely to arise from such activities; and (c) impacts on Indigenous Peoples that are likely to arise from such activities. The policies and procedures also cover working conditions and community health and safety aspects described in ESS 1.
The Bank requires the Client to
disclose the draft ESMPF in the manner required of it under paragraph 57 of this ESP and engage in consultation on the ESMPF in the manner required of
it under Section J below.
46. ESMP. The Client agrees with the Bank on the ESMPF, including the RPF and IPPF if required, prior to approval of the Bank’s financing. The Bank requires the Client to prepare the environmental and social assessment report and ESMP for each of these activities during preparation of the activities in conformity with the ESMPF. Costs of implementation of the ESMPF are eligible for the Bank financing if these activities are included in the Project description.
47. Coverage of ESMPF and Supporting Frameworks. The Bank requires the Client to ESMPF, RPF and IPPF: (a) description of the applicable policies and procedures to be followed; (b) explanation of the anticipated risks and impacts; (c) screening and assessment activities; (d) provisions for disclosure of and consultation on the ESMPF, and the RPF or IPPF (as applicable); (e) implementation and monitoring requirements; and (f) roles and responsibilities.If the Bank authorizes the Client to use a phased approach in accordance with Section G below, the Bank requires the Client to describe with specificity in the ESMPF the phased approach, including the activities covered by this approach, the environmental and social planning and assessment activities, their phasing and their timing.
48. Assessment of Capacity. To determine whether the application of an ESMPF, RPF or IPPF is appropriate, the Bank assesses the Client’s capacity to manage environmental and social risks and impacts and to implement relevant national laws, the ESP and the applicable ESSs. If gaps exist between the ESSs and the laws of the country in which the Project is located, or where gaps in Client capacity are apparent, the Bank requires the Client to include in the relevant document details of the specific gap-filling requirements to ensure that the Client complies with the provisions of the applicable ESSs.
49. Decision and Conditions for Use. In determining the use of an ESMPF, the Bank takes into account:(a) the proposed Project's overall risks, impacts and benefits; (b) an initial review of environmental and social implications of the Project; and (c) the Client's capacity, commitment and track record in managing environmental and social risks and impacts and to implement relevant national laws, the ESP and applicable ESSs. Except in situations of urgent need of assitance described below in paragraph 51, the Client may not carry out any Project activity covered by the phased approach until the required environmental and social risk and impact assessment, including information disclosure and consultation, has been conducted and related management measures for such activity, including resettlement and Indigenous Peoples plans, as applicable, have been approved by the Bank and implemented as required. This is reflected in the ESMPF and the legal agreement for the Project.
G. Special Circumstances
50. Use of a Phased Approach. In exceptional circumstances, duly justified by the Client, the Bank may determine that the timing of the Client’s environmental and social assessment of identified activities under the Project, and the timing of the Bank’s environmental and social due diligence and the Client’s environmental and social assessment, may follow a phased approach that takes place following the Bank’s approval of the Project. In making its determination, the Bank considers: (a) the proposed Project’s overall risks, impacts and benefits; (b) an initial review of environmental and social implications of the Project; and (c) the Client’s capacity,
commitment and track record in managing environmental and social risks and impacts and to implement relevant national laws, the ESP and applicable ESSs. Where a Project proposes such a phrased approach, a description of the approach(including actions and their timing) is provided in an ESMPF. Except in situations of urgent need of assisstance described below in paragraph 51, the Client may not carry out any Project
activity covered by the phased approach until the required environmental and social risk and impact assessment, including information disclosure and consultation, has been conducted and related management measures for such activity, including resettlement and Indigenous Peoples plans, as applicable, have been approved by the Bank and implemented as required. This is
reflected in the ESMPF and the legal agreement for the Project.
51. Projects in Situations of Urgent Need of Assistance. An example of when the Bank may determine that a phased approach is warranted would be in a case where the Client is deemed by the Bank to be in urgent need of assistance because of a natural or man-made disaster or conflict. In such a case, and if the Client so requests, the Bank may approve a deferral of certain of the environmental and social requirements in this ESP and ESSs to the Project. implementation phase. The nature and timing of the requirements to be met by the Client are set out in the ESMPF and legal agreement for the Project.
H. Use of Country and Corporate Systems
52. Client Systems. The Bank may, if requested, decide to offer the Client (whether public or private) the option to use all or part of the Client’s existing environmental and social management system for all or part of the Project, on the basis of the following:
Review by the Bank of the Client’s existing environmental and social management system relevant to the Project, including its scope and effectiveness, and a determination by the Bank that the relevant parts of this system are adequate to address the environmental and social risks and impacts of the Project in a manner materially consistent with the objectives of the ESP and relevant ESSs; and
Review by the Bank of the performance of the Client’s environmental and social management system proposed for use in the Project, and a determination by the Bank of the Client’s ability to apply the system, and the system’s capacity to enable the Project to achieve the desired environmental and social outcomes. An element of this review is an assessment of the Client’s implementation practices, capacity and commitment.
53. The review is conducted in consultation with the Client and Project stakeholders, and the Bank discloses its findings in accordance with paragraph 58 of this ESP. The Bank may conduct the review alone or with development partners.It may also rely on studies prepared by other development partners if it is satisfied with the quality of such studies.
54. Scope of Systems. The Client’s environmental and social management system includes those aspects of the policy, legal and institutional framework of the country in which the Project is located, which are relevant to the environmental and social risks and impacts of the Project. This includes national, subnational, sectoral or corporate implementing institutions; applicable laws, regulations, rules and procedures; and implementation capacity; as well as the international agreements to which the member is a party. The aspects of the Client’s existing system that are relevant may vary between the public and private sectors, from Project to Project, depending on such factors as the type, scale, location and environmental and social risks and impacts of the Project, and the role and authority of different institutions involved. The Bank may, on the basis of its review, determine that one or more specific parts of the Project qualifies for the use of all or part of the Client’s system in lieu of one or more of the ESSs or elements of the ESP. The Bank reviews and approves the environmental and social documentation for the Project and maintains its supervisory role in Project implementation. Use of a Client’s systems does not preclude access of affected stakeholders to the Bank’s oversight mechanism or Project-level grievance mechanisms.
55. Specific Measures. If the Bank determines that the Client may use all or part of the Client’s environmental and social management system for one or more specific parts of the Project, the Bank, in consultation with the Client, identifies actions required to address gaps to ensure that the system is materially consistent with the objectives of the ESP and relevant ESSs, and that the Project can achieve its development objectives. The Bank requires the Client to describe the parts of the system proposed to be used for the Project in the ESMP or ESMPF (as applicable). To the extent actions to address gaps are necessary to ensure that the system is materially consistent with the objectives of the ESP and relevant ESSs, the Bank requires the Client to detail these actions, together with the time frames for their completion, the reporting requirements of the Client and the monitoring approach of the Bank, in the ESMP or ESMPF, (as applicable).
56. Notification of Changes. The Bank requires the Client to notify the Bank of any material change in its environmental and social management system that may adversely affect the Project. In such a case, if the Bank determines that the change is no longer materially consistent with the objectives of the ESP or relevant ESSs or that it is inconsistent with the ESMP or ESMPF, the Bank may: (a) require revisions to the ESMP or ESMPF (or both), as necessary to meet the requirements of material consistency with the objectives of the ESP and relevant ESSs; and (b) require the Client to take such other actions as the Bank deems appropriate to address any potentially adverse impacts on the Project. The Bank may also apply any contractual remedies available to it under its financing agreement for the Project.
I. Information Disclosure
57. Information Disclosure by the Client. The Bank requires the Client to ensure that relevant information about environmental and social risks and impacts of the Project is made available in the Project area in a timely and accessible manner, and in a form and language(s) understandable to the Project-affected people, other stakeholders and the general public, so they can provide meaningful inputs into the design and implementation of the Project. This documentation includes, as applicable, the following:
Draft environmental and social assessment reports, ESMPs, ESMPFs, resettlement plans, RPFs, Indigenous Peoples plans and IPPFs, or other approved forms of documentation;*8*
Final or updated environmental and social assessment reports, ESMPs, ESMPFs, resettlement plans, RPFs, Indigenous Peoples plans and IPPFs, or other approved forms of documentation; and
ESMPs, resettlement plans, Indigenous Peoples plans and monitoring reports required to be prepared by Clients during Project implementation under ESMPFs, RPFs, IPPFs, or other approved forms of documentation.
The Bank requires the Client to disclose in the same manner on a regular basis any updated information,alongwithinformationonanymaterial changesintheProject.
58. Information Disclosure by the Bank. The Bank posts online the Client’s documentation on the Project as provided in paragraph 57 above. It posts draft environmental and social assessment reports, ESMPs, ESMPFs, resettlement plans, RPFs, Indigenous Peoples plans and IPPFs, or other approved forms of documentation, prior to,*9* or as early as possible during the Bank’s appraisal of the Project; and other documentation referred to in paragraph 57 in a timely manner. In addition, the Bank posts its reviews of the use of country and corporate systems.
J. Consultation
59. Consultation. The consultation covers Project design, mitigation and monitoring measures, sharing of development benefits and opportunities on a Project-specific basis, and implementation issues. The Bank requires the Client to engage in meaningful consultation*10* with stakeholders during the Project’s preparation and implementation phases, in a manner commensurate with the risks to, and impacts on, those affected by the Project. Consultation is required for each Category A Project, and for each Category B Project, proportionate to its risks and impacts. Consultation for a Category A Project is normally more elaborate than consultation for a Category B Project. For each Project with: (a) significant adverse environmental and social impacts; (b) Involuntary Resettlement; or (c) impacts on Indigenous Peoples, the Bank may participate in consultation activities to understand the concerns of the affected people and to ensure that the Client addresses such concerns in the Project’s design and ESMP or ESMPF (as applicable). The Bank ensures that the Client includes a record of the consultations and list of participants in the environmental and social assessment documentation.
60. When Free, Prior and Informed Consultation (FPICon) Is Required. Since Indigenous Peoples may be particularly vulnerable to the loss of, alienation from, or exploitation of their land and access to natural and cultural resources, the Bank requires the Client to engage in FPICon with the affected Indigenous Peoples if activities under the Project would: (a) have impacts on land and natural resources subject to traditional ownership or under customary occupation or use; (b) cause relocation of Indigenous Peoples from land and natural resources subject to traditional ownership or under customary occupation or use; or (c) have significant impacts on Indigenous Peoples’ cultural heritage. In these circumstances, the Bank requires the Client to engage suitably qualified and experienced independent experts to assist in the identification of these activities’ risks to and impacts on Indigenous Peoples.
61. Definition of FPICon. There is no universally accepted definition of FPICon; for the purpose of this ESP and ESS 3, FPICon is established as follows: (a) the scope of FPICon applies to Project design, implementation arrangements and expected outcomes related to risks to, and impacts on, the affected Indigenous Peoples; (b) FPICon builds on the process of meaningful consultation and requires good faith negotiation between the Client and these affected Indigenous Peoples; (c) the Client documents: (i) the mutually accepted process of consultation between the Client and these Indigenous Peoples; and (ii) evidence of broad community support of these Indigenous Peoples on the outcome of the negotiations; and (d) FPICon does not require unanimity and may be achieved even when individuals or groups within or among these affected Indigenous Peoples explicitly disagree with support for the Project. When the Bank is unable to ascertain that such broad community support has been obtained from the affected Indigenous Peoples, it excludes from the Project those activities that would affect those Indigenous Peoples. In such cases, the Bank requires the Client to ensure that the Project, as redesigned, will not have adverse impacts on such Indigenous Peoples. If the laws of the country in which the Project is located mandate free, prior and informed consent (FPIC), the Bank may, in accordance with paragraph 9 of this ESP, and provided that in its view, such application is consistent with the requirements of FPICon as set out above in paragraph 60 and this paragraph 61, determine that the Client is required to apply FPIC as defined in those laws.
K. Monitoring and Reporting
62. The Bank and the Client have complementary but distinct monitoring responsibilities. The extent of monitoring activities, including their scope and periodicity, is proportional to the Project’s risks and impacts.
Client – Monitoring and Reporting. The Bank requires the Client to implement the Project in compliance with the ESMP or ESMPF (or both), and any resettlement plan or RPF and any Indigenous Peoples plan or IPPF, and to furnish the Bank with periodic monitoring reports on the Client’s performance under the Project, including FI subprojects, relating to environmental and social risks and impacts. This may include information on health and safety issues as well as implementation phase consultations. Specifically, the Bank requires the Client to take the following actions under the Project:
Establish and maintain appropriate procedures to monitor progress in the implementation of the environmental and social measures agreed with the Bank;
Verify the compliance with these specific measures and their progress toward intended outcomes;
Document and disclose in accordance with paragraph 57 above, monitoring results and identify necessary corrective actions in the periodic monitoring reports; the frequency will be proportional to the issues, but not less than annually;
Follow up on these actions to ensure progress toward the intended outcomes;
Retain suitably qualified and experienced experts to verify monitoring
information on a routine basis if the Project has significant risks and impacts;
Use suitably qualified and experienced specialist individual experts or independent advisory panels, not affiliated with the Project, to monitor implementation if the Project is very complex or sensitive; and
Furnish the Bank with periodic monitoring reports on environmental and social measures agreed with the Bank.
The Bank – Monitoring and Reporting. The Bank reviews Project performance against the Client’s obligations set forth in the legal agreement governing the Project. Monitoring and supervision of environmental and social aspects of the Project are integrated into the Bank’s supervision plan for the Project. The Bank monitors the Project on an ongoing basis until Project completion. In supervising and monitoring implementation of the environmental and social aspects of the Project, the Bank:
Conducts periodic site visits if the Project has adverse environmental or social risks and impacts;
Conducts comprehensive field-based reviews if the Project has significant adverse environmental and social risks and impacts;
Reviews the periodic monitoring reports furnished by the Client to ascertain whether adverse risks and impacts are mitigated as planned and as agreed with the Bank;
Consults with the Client on corrective measures to rectify any failures to comply with its environmental and social obligations, as documented in the legal agreement governing the Project; and
Prepares a completion report*11* that assesses whether the objective and desired outcomes of the Project’s environmental and social measures have been achieved, taking into account the baseline conditions documented in the ESIA, ESMP, ESMPF, resettlement plan, RPF, Indigenous Peoples plan or IPPF, or other approved documentation (as applicable), and the results of monitoring.
L. Grievances
63. Project-level Grievance Redress. The Bank requires the Client to establish, in accordance with the ESP and applicable ESSs, a suitable grievance mechanism to receive and facilitate resolution of the concerns or complaints of people who believe they have been adversely affected by the Project’s environmental or social impacts, and to inform Project- affected people of its availability. The mechanism provides for maintenance of a publicly accessible case register, and reports on grievance redress and outcomes, which are disclosed in accordance with the applicable ESS. If the Project is a private-sector Project*12*, the Bank also requires the Client to establish a grievance mechanism for workers to address workplace concerns.
64. Bank Oversight Mechanism.*13* People who believe they have been or are likely tobe adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank's oversight mechanism in accordance with the policies and procedures to be established by the Bank for such mechanism.
Roles and Responsibilities
65. The Bank’s Roles and Responsibilities.*14* The Bank: (a) screens each Project to assign an environmental and social category to it; (b) undertakes environmental and social due diligence regarding the Project as provided for in this ESP; (c) reviews the Client’s environmental and social documentation required under this ESP and applicable ESSs, to determine whether appropriate measures are in place to avoid, minimize, mitigate, offset or compensate for adverse environmental and social risks and impacts in compliance with this ESP and applicable ESSs; (d) determines the feasibility of the Bank financing for the Project; and (e) monitors and supervises the Client’s compliance with its environmental and social obligations until completion of the Project, in accordance with the legal agreements governing the Project. The Bank discloses the environmental and social documentation for the Project, referred to in paragraph 58, as applicable, on its website, in a timely manner.
66. If the Client fails to comply with its environmental and social obligations in accordance with the legal agreements governing the Project, the Bank consults with the Client on corrective measures to bring the Client back into compliance. If the Client fails to reestablish compliance within a time frame deemed appropriate by the Bank, then the Bank may exercise its available contractual remedies under its legal agreements governing the Project.*15*
67. Roles and Responsibilities of the Client. The Client: (a) assesses the Project and its environmental and social risks and impacts; (b) prepares the Project’s environmental and social documentation, in accordance with the ESP and ESSs; and (c) engages with people affected by the Project and other stakeholders, through information disclosure, and meaningful consultation in accordance with the ESP and ESSs. The Client furnishes all required information, including executive summaries and reports on the environmental and social assessment, all of the Project’s required environmental and social documentation, and monitoring reports, to the Bank for review.
68. The Client is responsible for complying with its environmental and social obligations under the Project in accordance with the legal agreements with the Bank governing the Project. To ensure that contractors appropriately implement the agreed measures, the Client includes the relevant environmental and social requirements in the tendering documents and contracts for goods and services required for the Project.*16*
Decision-making and Legal Provisions
69. Timing of Documentation. The Bank requires the Client to complete and furnish the Bank with the following environmental and social documentation, as required for the Project, prior to,*17* or as early as possible during the Bank’s appraisal of the Project: the draft environmental and social assessment report, including the record of consultations; the draft ESMP or ESMPF (if applicable); and the drafts of any required resettlement plan, Indigenous Peoples plan, RPF and IPPF (if applicable).
70. Information for Bank Decision-making. The documentation prepared by the Bank for approval of the Project’s financing includes a description of the Bank’s environmental and social due diligence for the Project, the Project’s environmental and social risks and impacts, mitigation and monitoring measures, a summary of stakeholder engagement, and the way in which these risks and impacts are being or will be addressed by the Client (including, when the Bank agrees to a phased approach under Section G above, a description of that approach). The Bank describes how it has taken the comments and concerns of stakeholders into account as part of assessing the overall environmental and social benefits and risks of the Project.
71. Inclusion in Agreement for the Project. The agreements with the Bank governing the Project contain, as applicable:*18* (a) specific provisions reflecting all actions required on the part of the Client during implementation of the Project (and their timing) to ensure compliance with the ESP and the applicable requirements of the ESSs, including implementing the Project in accordance with the applicable environmental and social documents; (b) provisions regarding any phased approach adopted pursuant to Section G; (c) provisions on environmental and social monitoring and reporting; and (d) contractual remedies available to the Bank in the event the above actions are not taken.
72. Exclusions. The Bank will not finance Projects that it determines do not comply with the ESP and ESSs. The Bank will not knowingly finance a Project that: (a) either involves or results in forced evictions;*19* or (b) involves activities or items specified in the list set forth in the attached Environmental and Social Exclusion List.
Related Documents
73.The following documents are also relevant to the ESP and ESSs:
Directive: Environmental and Social Procedures (under development).
Operational Policy on Financing (and related Directives, which are under development).
Operational Policy on International Relations (and related Directives, which are under development).*20*
Procurement Policy (and related Directives, which are under development).
Policy on Prohibited Practices (under development).
Public Information Interim Policy.
General Conditions applicable to Sovereign-backed Loans (under development).
{*1* 1 This would be the case for trust funds that may be established by the Bank in accordance with its Articles of Agreement. For co-financing, see paragraph 10 of this ESP.}
{*2* For the purpose of the ESP and ESSs, vulnerable groups or individuals refer to people who, by virtue of factors beyond their control, may be more likely to be adversely affected by the Project’s environmental or social impacts and may be more limited than others in their ability to claim or take advantage of Project benefits.}
{*3* For example, pre-feasibility studies, scoping studies, national environmental and social assessments, licenses and permits.}
{*4* See also Operational Policy on Financing for the approval process for Project changes.}
{*5*For a definition of Involuntary Resettlement, see ESS 2.}
{*6*For a definition of Indigenous Peoples, see ESS 3.}
{*7*For example, because: (a) the zone of impact of subprojects cannot be determined, or (b) the zone of
impact is known but precise sitting alignments cannot be determined.}
{*8* For Sovereign-backed Loans, the drafts of the required documentation are disclosed prior to appraisal. For other types of financing, the Bank requires the Client to disclose these draft documents prior to, or as early as possible during the Bank’s appraisal of the Project.}
{*9* For Sovereign-backed Loans, the drafts of the required documentation are disclosed prior to appraisal.}
{*10* For a definition of meaningful consultation, see ESS 1.}
{*11* See also Operational Policy on Financing.}
{*12* A Project is a private-sector Project if: (a) it is designed, constructed, operated and owned by a private entity; (b) the private entity is fully responsible for identifying, assessing and managing the environmental and social risks associated with the activity; and (c) the private entity has a generally recognized capacity to identify, assess and manage the environmental and social risks associated with the Project. A private entity is any natural or legal person, whether privately or publicly owned: (a) which is carrying out or is established for a business purpose, and is operating on a commercial basis; (b) which is financially and managerially autonomous; and (c) whose day-to-day management is not controlled by the government.}
{*13* The Bank’s oversight mechanism is currently under development, in line with its Articles of Agreement, and this section will be updated as necessary once the mechanism has been finalized.}
{*14* See also Operational Policy on Financing.}
{*15* See also Operational Policy on Financing.}
{*16* See also Procurement Policy.}
{*17* If the financing for the Project is a Sovereign-backed Loan, the Bank requires this documentation prior to appraisal.}
{*18* See also Operational Policy on Financing.}
{*19* Forced eviction is defined as the permanent or temporary removal, against the will of individuals, families and/or communities, from homes or land (or both) which they occupy, without the provision of, or access to, appropriate forms of legal or other protection (such as the provisions of ESS 2: Involuntary Resettlement). The exercise of eminent domain, compulsory acquisition or similar powers, is not considered to be forced eviction, providing it complies with the requirements of national law and the provisions of ESS 2: Involuntary Resettlement, and is conducted in a manner consistent with basic principles of due process (including provision of adequate advance notice, meaningful opportunities to lodge grievances and appeal, and avoidance of the use of unnecessary, disproportionate or excessive force).}
{*20* The Operational Policy on International Relations is expected to cover issues relating to de facto governments, disputed areas and international waterways; it will not address environmental or social aspects of these issues, but rather aspects of these issues relating to the relations between states. Any environmental or social aspect of, for example, a Project involving an international waterway, would be covered by this ESP and applicable ESSs.}