E&S Management Framework (Esmf) Nigeria Solar Ipp Support Program 22 January 2019

E&S MANAGEMENT FRAMEWORK (ESMF)

NIGERIA SOLAR IPP SUPPORT PROGRAM

22 JANUARY 2019

ESMF Nigeria Solar IPP Program (January 2019) TABLE OF CONTENTS

LIST OF TABLES ...... VII LIST OF FIGURES ...... VIII GLOSSARY OF TERMS ...... 1 EXECUTIVE SUMMARY ...... 3 1 INTRODUCTION ...... 5

1.1 BACKGROUND ...... 5 1.2 RATIONALE FOR THE ESMF ...... 6 1.3 OBJECTIVES OF ESMF ...... 7 2 PROGRAM DETAILS AND SUB-PROJECTS ...... 8

2.1 INTRODUCTION ...... 8 2.1.1 Typical Activities associated with solar power developments ...... 9 2.2 LOCATION OF THE 14 IPP SOLAR PROJECTS ...... 9 2.3 LOCATION OF THE 13 SUB-PROJECTS (WITH SUBMITTED EXPRESSIONS OF INTEREST) ...... 11 2.4 E&S ASSESSMENTS RELATED TO PROJECT PHASES ...... 13 2.5 CRITERIA FOR IDENTIFYING SUB-PROJECTS ...... 15 3 REGULATORY AND INSTITUTIONAL FRAMEWORK ...... 17

3.1 RELEVANT NIGERIAN POLICIES, LEGISLATIONS AND INSTITUTIONAL PROVISIONS ...... 17 3.1.1 Nigerian Environmental and Social Safeguard Policies and Legal Provisions ...... 17 National Policy on the Environment (1988) ...... 17 EIA Act Cap E12 LFN 2004 ...... 17 National Environmental Protection (Pollution Abatement in Industries and Facilities Generating Wastes) Regulations, 1991 ...... 18 National Environmental Protection (Management of Solid and Hazardous Wastes) Regulations, 1991 ...... 18 National Environmental (Sanitation and Wastes Control) Regulations, 2009 ...... 18 National Environmental (Electrical/Electronic Sector) Regulations, 2011 ...... 19 National Environmental (Noise Standards and Control) Regulations, 2009 ...... 19 National Environmental (Surface & Groundwater Quality Control) Regulations 2011 ...... 19 3.1.2 Land Use Act CAP L5 LFN 2004 ...... 19 3.1.3 Nigerian Energy Sector Policies and Legal Provisions ...... 20 National Energy Policy, 2003 ...... 20 Electric Power Sector Reform Act 2005 ...... 21 Energy Commission of Nigeria Act CAP 109 LFN 1990 ...... 21 Nigerian Electricity Supply and Installation Standards (NESIS) Regulations 2015 ...... 21 Acquisition of Land Access Rights for Electricity Projects Regulations, 2012 ...... 22 Roadmap for Power Sector Reform of August, 2010 ...... 22 Renewable Energy and Efficiency Master Plan (REEMP), 2016 ...... 22 3.1.4 Other applicable E & S laws and regulations in Nigeria...... 23 3.1.5 The Gender Policy Framework in Nigeria ...... 24 3.1.6 National Gender Policy, 2006 ...... 25 3.2 NIGERIA’S NATIONAL DETERMINED CONTRIBUTIONS (NDC) ON CLIMATE CHANGE ...... 25 3.3 INTERNATIONAL CONVENTIONS AND AGREEMENTS...... 27 3.4 NIGERIAN INSTITUTIONAL PROVISIONS AND ARRANGEMENTS ...... 28

ii ESMF Nigeria Solar IPP Program (January 2019) 3.4.1 Federal Ministry of Environment ...... 28 National Environmental Standards and Regulations Enforcement Agency (NESREA) ...... 29 3.4.2 Federal Ministry of Power Works and Housing ...... 29 Nigerian Electricity Regulatory Commission (NERC) ...... 29 Transmission Company of Nigeria (TCN) ...... 30 Nigerian Bulk Electricity Trading Plc (NBET) ...... 30 Energy Commission of Nigeria (ECN) ...... 30 Rural Electrification Agency...... 30 3.5 INTERNATIONAL POLICIES, STANDARDS AND INSTITUTIONS ...... 30 3.5.1 Green Climate Fund ...... 30 Accreditation ...... 31 Screening and risk categories ...... 31 Environmental and social due diligence under GCF ...... 32 Environmental and social assessment...... 33 Environmental and social management plan (ESMP) ...... 33 Operational changes ...... 33 Monitoring and reporting ...... 33 3.5.2 Africa Finance Corporation ...... 34 AFC’s Environmental and Social Risk Management Policy ...... 34 International Finance Corporation E&S Standards ...... 35 AFC’s Project Categorization ...... 35 AFC ESDD process ...... 36 AFC Gender Policy ...... 37 3.5.3 The African Development Bank (AfDB) ...... 38 Integrated Safeguards System (ISS) ...... 38 The Integrated Safeguards Policy Statement ...... 39 Operational Safeguards (OSs) ...... 39 Environmental and Social Assessment Procedures (ESAPs) ...... 40 Integrated Environmental and Social Impact Assessment (IESIA) Guidance Notes ...... 42 AfDB Project Categorisation Process ...... 43 3.6 ENVIRONMENTAL AND SOCIAL ASSESSMENT OF NIGERIAN POLICIES AND LEGISLATIONS, IFC PERFORMANCE STANDARDS AND AFDB SAFEGUARD SYSTEMS ...... 45 3.7 DISCLOSURE REQUIREMENTS ...... 49 4 ENVIRONMENTAL AND SOCIAL BASELINE INFORMATION...... 51

4.1 ENERGY DISTRIBUTION AND ACCESS ...... 51 4.2 PHYSICAL ENVIRONMENT ...... 52 4.2.1 Climate ...... 52 Temperature and Relative Humidity ...... 52 Rainfall ...... 52 Wind ...... 53 4.2.2 Air Emissions and Noise ...... 53 4.2.3 Soil and Landscape ...... 54 4.2.4 Geology ...... 55 Quaternary Alluvial Deposits ...... 55 Mesozoic to tertiary rocks ...... 55 Precambrian basement complex rocks ...... 56 4.2.5 Hydrogeology ...... 56 Regional hydrogeology: Northwestern Nigeria ...... 56 Regional hydrogeology: northeastern Nigeria ...... 57

iii ESMF Nigeria Solar IPP Program (January 2019) Regional hydrogeology: the Middle Niger Basin and central Nigeria ...... 57 4.3 BIOLOGICAL ENVIRONMENT ...... 58 4.3.1 Floral Characteristics ...... 59 4.3.2 Fauna Characteristics ...... 63 4.3.3 Endangered and Critically endangered Species in Nigeria ...... 66 4.3.4 Protected Areas ...... 67 4.4 SOCIO-ECONOMIC ENVIRONMENT ...... 68 4.4.1 Demographics ...... 68 4.4.2 Population ...... 68 4.4.3 Ethnic Groups and Religion ...... 69 4.4.4 Public Health ...... 69 4.4.5 Epidemic Diseases and HIV/AIDS ...... 70 4.4.6 Land Use and Tenure ...... 71 4.4.7 Land Competition and Conflict between Farmers and Pastoralists ...... 72 4.4.8 Cultural Heritage ...... 73 5 GENDER CONSIDERATIONS AND VULNERABLE GROUPS ...... 74

5.1 INTRODUCTION ...... 74 5.2 GENDER ISSUES ...... 75 5.2.1 Gender issues in Northern Nigeria ...... 76 5.2.2 Impediments to the Girl-Child Education in Northern Nigeria ...... 77 5.3 VULNERABLE GROUPS ...... 78 5.3.1 Indigenous Groups ...... 78 5.4 APPROACHES TO CONSULTATION, INCLUDING VULNERABLE GROUPS ...... 79 5.4.1 Vulnerable group inclusion ...... 79 a. AfDB ISS requirements on vulnerable groups ...... 80 b. Objective and scope of vulnerable group identification ...... 81 c. Differentiated measures for vulnerable groups’ inclusion in development ...... 81 5.5 GENDER MAINSTREAMING AND VULNERABILITY ASSESSMENT ...... 83 5.6 IMPLEMENTATION OF GENDER CONSIDERATIONS IN THE PROGRAM ...... 84 6 6. POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS ...... 85

6.1 OVERALL CONTEXT ...... 85 6.2 NEGATIVE ENVIRONMENTAL AND SOCIAL IMPACTS ...... 85 6.3 POSITIVE ENVIRONMENTAL AND SOCIAL IMPACTS ...... 88 6.4 GENDER SENSITIVE DEVELOPMENT IMPACTS ...... 88 7 POTENTIAL MITIGATION MEASURES ...... 91

7.1 INTRODUCTION ...... 91 7.2 APPROACH TO ENVIRONMENTAL AND SOCIAL RISK AND IMPACT MITIGATION ...... 100 8 ENVIRONMENTAL AND SOCIAL MANAGEMENT PROCEDURES AND REQUIREMENTS ...... 103

8.1 ENVIRONMENTAL, HEALTH AND SAFETY GUIDELINES TO BE IMPLEMENTED BY THE PROGRAM ...... 103 8.2 ENVIRONMENTAL AND SOCIAL DUE DILIGENCE PROCESS (ESSD) ...... 104 8.3 ENVIRONMENTAL AND SOCIAL IDENTIFICATION AND PRELIMINARY ASSESSMENT (ENVIRONMENTAL SCREENING AND SCOPING) ...... 108 8.4 ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT (ESIA) STUDIES ...... 109

iv ESMF Nigeria Solar IPP Program (January 2019) 8.5 ENVIRONMENTAL AND SOCIAL MANAGEMENT FOR THE PROGRAM ...... 110 8.5.1 Environmental and Social Management Plans (ESMP) ...... 110 8.5.2 Other Instruments for E&S Management ...... 111 8.5.3 Studies for environmental and social management ...... 112 8.5.4 Environmental and social studies required by national (Nigerian) legislations ...... 112 8.5.5 Environmental and social studies required by the IFC Performance Standards and AfDB Operational Safeguards ...... 112 8.6 ENVIRONMENTAL AND SOCIAL MONITORING ...... 114 9 STAKEHOLDER ENGAGEMENT AND GRIEVANCE MANAGEMENT ...... 115

9.1 STAKEHOLDERS’ CONSULTATION AND ENGAGEMENT ...... 115 9.2 CONSULTATIONS RELATED TO INVOLUNTARY DISPLACEMENT ...... 116 9.3 PROGRAM GRIEVANCE REDRESS MECHANISM (GRM) ...... 118 a. Independent Review Mechanism (IRM)...... 119 b. GRM at project level ...... 119 9.4 APPOINTING MEMBERS OF GRIEVANCE REDRESS COMMITTEES (GRC) ...... 120 9.5 PROCEDURES, COMPLAINTS CHANNELS AND TIME FRAME FOR GRIEVANCE REDRESS MECHANISMS ...... 121 9.6 STAKEHOLDER ENGAGEMENT ACTIVITIES DURING THE PREPARATION OF THE ESMF ...... 123 9.6.1 Stakeholders Consulted ...... 123 9.6.2 Summary of the outcomes of the engagements ...... 125 10 ESMF IMPLEMENTATION AND MANAGEMENT ...... 128

10.1 INSTITUTIONAL ARRANGEMENTS FOR ESMF IMPLEMENTATION ...... 128 10.2 ROLES AND RESPONSIBILITIES FOR MANAGING ENVIRONMENTAL AND SOCIAL REQUIREMENTS ...... 128 10.2.1 Sub-project proponent’s role and responsibilities ...... 128 10.2.2 AFC and AfDB’s role and responsibilities ...... 128 10.3 INSTITUTIONAL ARRANGEMENTS FOR THE IMPLEMENTATION OF THE ESMF ...... 129 10.3.1 Roles and responsibilities of Main Implementing Entity ...... 129 10.4 TRAINING AND CAPACITY STRENGTHENING PLAN ...... 131 ANNEXES ...... 135 11 ANNEX 1. TEMPLATES FOR ENVIRONMENTAL AND SOCIAL MANAGEMENT INSTRUMENTS.... 136

ANNEX 1A. E&S SCREENING FORM ...... 137 ANNEX 1B. ENVIRONMENTAL AND SOCIAL MONITORING REPORT...... 140 ANNEX 1C. ENVIRONMENTAL AND SOCIAL FINAL REPORT ...... 142 ANNEX 1D: CHANCE FIND PROCEDURE ...... 144 12 ANNEX 2: GENERIC E & S MITIGATION AND ENHANCEMENT MEASURES TO BE CONSIDERED FOR SUB-PROJECTS ...... 147 13 ANNEX 3: RESETTLEMENT POLICY FRAMEWORK ...... 162

13.1 INTRODUCTION ...... 162 13.2 PROGRAM DESCRIPTION ...... 163 13.3 RATIONALE OF THE RPF ...... 167 13.4 PURPOSE OF THE RESETTLEMENT POLICY FRAMEWORK...... 168 13.5 OBJECTIVES OF THE RESETTLEMENT POLICY FRAMEWORK ...... 168 13.6 LEGAL AND ADMINISTRATIVE FRAMEWORK GOVERNING RESETTLEMENT IN NIGERIA ...... 169

v ESMF Nigeria Solar IPP Program (January 2019) 13.6.1 Land Use Act – 1978 ...... 170 13.6.2 Electric Power Sector Reform (EPSR) Act - 2005 ...... 172 13.6.3 Nigeria Electricity Regulatory Commission (NERC) ...... 172 13.6.4 Transmission Company of Nigeria (TCN) ...... 173 13.6.5 Overview of the Land Take process in Nigeria ...... 173 Step 1: Preparation of a Survey Description ...... 173 Step 2: Publication of a Notice of Acquisition ...... 174 Step 3: Surveying the Property ...... 174 Step 4: Assessment ...... 174 Step 5: Registration and Stamping ...... 174 Step 6: Preparation of Certificate of Occupancy ...... 175 13.6.6 Legal Mechanisms for Resolving Land-related Grievances ...... 175 The Constitution ...... 175 Land Use Act ...... 175 13.6.7 Scope of the Land Use and Allocation Committee ...... 175 13.6.8 Traditional Land Tenure in Nigeria ...... 176 13.6.9 Certificates of Occupancy ...... 177 13.6.10 Institutional Framework ...... 177 Federal Government ...... 177 State Government ...... 177 Local Government ...... 178 Traditional Leadership ...... 178 13.6.11 International Standards and Guidelines related to Involuntary Displacement ... 179 The African Development Bank Group’s (AfDB) Integrated Safeguard System ...... 179 International Finance Corporation (IFC) ...... 180 13.6.12 Comparison of Relevant National Legislation and International Standards ...... 180 13.7 COMPENSATION FRAMEWORK ...... 188 13.7.1 Compensation Principles ...... 188 13.8 ELIGIBILITY PRINCIPLES ...... 192 13.8.1 Establishment of Entitlement Cut-off Date ...... 192 13.8.2 Entitlements ...... 192 13.9 ENTITLEMENT PLANNING...... 198 13.10 METHOD OF COMPENSATION ...... 198 13.11 ENTITLEMENT FOR COMPENSATION ...... 198 13.12 VALUATION ...... 199 13.12.1 State (urban and non-urban) owned Land ...... 199 13.12.2 Privately owned Land ...... 199 13.12.3 Assets held under Customary Law ...... 199 13.12.4 Method of Valuation ...... 200 13.12.5 Arrangements for Compensation ...... 201 13.13 PUBLIC PARTICIPATION ...... 201 13.13.1 Notification ...... 202 13.13.2 Documentation of Holdings and Assets ...... 202 13.14 AGREEMENT ON COMPENSATION AND PREPARATION OF CONTRACTS ...... 202 13.15 COMPENSATION PAYMENTS ...... 202 13.15.1 Community Compensation Payments ...... 202 13.15.2 Procedures for Delivery of Compensation ...... 203 13.16 MONITORING AND EVALUATION ...... 203

vi ESMF Nigeria Solar IPP Program (January 2019) 13.16.1 Monitoring Process ...... 203 13.17 LIVELIHOOD RESTORATION ...... 204 13.17.1 Key Principles Guiding Livelihood Restoration Planning ...... 204 13.17.2 Process for Determining Livelihood Restoration Options ...... 204 13.17.3 Livelihood Restoration Plans ...... 205 13.18 RESETTLEMENT ACTION PLAN ...... 205 13.18.1 Introduction ...... 205 13.18.2 Outline of a RAP ...... 206

LIST OF TABLES TABLE 2.1. SUMMARY OF ALL THE SOLAR IPP SIGNED BY THE FEDERAL GOVERNMENT OF NIGERIA ...... 9 TABLE 2.2. TYPICAL SOLAR POWER DEVELOPMENT PROJECT CYCLE ...... 13 TABLE 2.3. APPROACH TO BE USED IN SELECTING SUB-PROJECTS FOR THE AFC-GCF FUNDING PROGRAM...... 15 TABLE 3.1. OTHER RELEVANT NATIONAL ENVIRONMENTAL PROTECTION REGULATIONS ...... 23 TABLE 3.2. SELECTED INTERNATIONAL AGREEMENTS AND CONVENTIONS TO WHICH NIGERIA IS A SIGNATORY ...... 28 TABLE 3.3. GCF PROJECT SCREENING CATEGORIES ...... 32 TABLE 3.4. AFC PROJECT CATEGORISATION ...... 36 TABLE 3.5. AFC ESDD PROCESS ...... 36 TABLE 3.6. AFDB OPERATIONAL SAFEGUARDS OS1-5 ...... 40 TABLE 3.7. SUMMARY OF THE AFDB PROJECT CYCLE AND E & S REQUIREMENTS...... 41 TABLE 3.8. AFDB PROJECT CATEGORIZATION PROCESS ...... 44 TABLE 3.9. COMPARISON OF NIGERIAN LEGAL PROVISIONS, AFDB ISS SPECIFICATIONS AND IFC PERFORMANCE STANDARDS (FOR AFC AND GCF) ...... 46 TABLE 3.10. DISCLOSURE REQUIREMENTS OF THE FMENV, GCF, AFC AND AFDB ...... 49 TABLE 4.1. FMENV AND WHO AMBIENT AIR QUALITY STANDARDS AND GUIDELINES ...... 54 TABLE 4.2. FMENV AND WHO NOISE LEVEL STANDARDS AND GUIDELINES...... 54 TABLE 4.3. FLORA CHARACTERISTICS IN NORTHERN NIGERIA ...... 59 TABLE 4.4. CLASSIFICATION OF FAUNA SPECIES (INVERTEBRATE) ...... 63 TABLE 4.5. CLASSIFICATION OF FAUNA SPECIES (VERTEBRATES) ...... 64 TABLE 4.6. CRITICALLY ENDANGERED AND ENDANGERED SPECIES ACROSS NIGERIA...... 66 TABLE 4.7. PROTECTED AREAS IN NORTHERN NIGERIA ...... 67 TABLE 4.8. HISTORICAL POPULATION GROWTH RATES IN NIGERIA ...... 68 TABLE 5.1. IMPEDIMENTS TO THE GIRL CHILD EDUCATION IN NORTHERN NIGERIA ...... 77 TABLE 6.1. ANTICIPATED NEGATIVE ENVIRONMENTAL AND SOCIAL IMPACTS OF SUB-PROJECTS (NON-EXHAUSTIVE) ..... 85 TABLE 6.2. ANTICIPATED POSITIVE ENVIRONMENTAL AND SOCIAL IMPACTS FROM SUB-PROJECTS (NON-EXHAUSTIVE) ... 88 TABLE 6.3. ANTICIPATED GENDER SENSITIVE IMPACTS ON SUB-PROJECTS ...... 89 TABLE 7.1. EXAMPLES OF MITIGATION MEASURES WHICH COULD BE APPLIED TO SUB-PROJECTS SELECTED FOR FUNDING 91 TABLE 10.1. ROLES AND RESPONSIBILITIES OF THE MAIN IMPLEMENTING ENTITIES ...... 129 TABLE 10.2. PROPOSED TRAINING PROGRAMS FOR ESMF IMPLEMENTATION ...... 133 TABLE 13.1. SUMMARY OF ALL THE SOLAR IPPS SIGNED BY THE FEDERAL GOVERNMENT OF NIGERIA ...... 164 TABLE 13.2. CATEGORIES OF PAPS AND COMPENSATION ACCORDING TO NIGERIA GUIDELINE AND INTERNATIONAL GUIDELINES ...... 189 TABLE 13.3. ELIGIBILITY CRITERIA FOR COMPENSATION ...... 192 TABLE 13.4. EXAMPLE OF AN ENTITLEMENT MATRIX THAT COULD BE APPLIED IN SUB-PROJECTS...... 194 TABLE 13.5. INDICATIVE VALUATION METHODS ...... 200

vii ESMF Nigeria Solar IPP Program (January 2019)

LIST OF FIGURES FIGURE 2.1. LOCATION OF THE 14 SOLAR IPP PROJECTS ...... 11 FIGURE 2.2. LOCATION OF 13 SUB-PROJECTS THAT HAVE EXPRESSED INTEREST IN AVAILING THE PROGRAM ...... 12 FIGURE 3.1. BREAKDOWN OF NIGERIA’S NDC TARGETS ...... 26 FIGURE 3.2. STRUCTURE OF THE AFDB ISS ...... 38 FIGURE 4.1. MAP SHOWING DIFFERENT VEGETATION BELT OF NIGERIA ...... 59 FIGURE 8.1. ESMF PROCESS ...... 108 FIGURE 13.1. LOCATION OF 11 SUB-PROJECTS BEING CONSIDERED FOR FUNDING UNDER THE PROGRAM ...... 166

viii ESMF Nigeria Solar IPP Program (January 2019)

GLOSSARY OF TERMS

AE Accredited Entity AFC Africa Finance Corporation AfDB African Development Bank ARAP Abbreviated Resettlement Action Plan BCS Broad Community Support CSP Country Strategy Paper DFI Development Financial Institution E&S Environment & Social EHS Environment Health and Safety ESA E&S Assessment ESMAP E&S Management Action Plans ESAPs AfDB E&S Assessment Procedures ESCR E&S Completion Report ESFR E&S Final Report ESIA E&S Impact Assessment ESIS E&S Impact Studies ESMF E&S Management Framework ESMoFo E&S Monitoring Form ESMP E&S Management Plan ESMPs E&S Management Action Plans ESMS E&S Management Systems ESS E&S Scoping ESSF E&S Screening Form FI Financial Intermediary FGN Federal Government of Nigeria FRAP Full Resettlement Action Plan GCF Green Climate Fund GHGs Green House Gases GoN Government of Nigeria GRM Grievance Redress Mechanism Human Immunodeficiency Virus-Acquired Immune Deficiency HIV-AIDS Syndrome IESIA Integrated E&S Impact Assessment

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ESMF Nigeria Solar IPP Program (January 2019)

IFC International Finance Corporation IFIs International Finance Institutions IPDP Indigenous People Development Plan IPPs Independent Power Producers IRM Independent Review Mechanism ISS Integrated Safeguards System ISTS Integrated Safeguards Tracking System IUCN International Union for the Conservation of Nature MDB Multilateral Development Bank NDC Nationally Determined Contributions OS Operational Safeguard OSs Operational Safeguards PACs Project Affected Communities PAP Project Affected Persons PAR Project Appraisal Report PBO Program-Based Operation PCN Project Concept Note PCR Physical and Cultural Resources PCR Project Completion Report PEN Preliminary Evaluation Note PIC Public Information Centre PS Performance Standard RAP Resettlement Action Plan RPF Resettlement Policy Framework SPV Special Purpose Vehicles STIs Sexually Transmitted Infections TOR Terms of Reference UN United Nations UNFCC United Nations Framework Convention on Climate Change WB World Bank Group

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ESMF Nigeria Solar IPP Program (January 2019) EXECUTIVE SUMMARY

As part of the Environmental and Social (E&S) safeguards documentation required to support the AFC and AfDB application for GCF funding, an E&S Management Framework (ESMF) is required for the Nigeria Solar IPP Support Program (the Program). The AFC, as the Accredited Entity has adopted the IFC Performance Standards as an integral part of its E&S assessment procedures. The AfDB has adopted an Integrated Safeguard System (ISS), consisting of an Integrated Safeguards Policy Statement and a set of E&S Performance Requirements. The proposed program will adopt both the IFC Performance Standards and the AfDB Operational Standards as requirements to ensure that the sub-projects selected for funding are compliant with the safeguard requirements of both the AFC and GCF. In accordance with the IFC Performance Standards which the AFC has adopted and AfDB’s ISS, all sub-projects in this program will undergo E&S appraisal to: • Help AFC and AfDB decide if the project should be financed and; • Determine which E&S risks and impacts should be addressed in planning, implementation and operation of selected sub-projects. The actual projects to be funded will be selected from among the 13 that have expressed interest in participating in the Program. The selection process will be undertaken in stages by AFC, using a number of criteria, including E&S risk-related criteria. Amongst others, eligibility criteria will include consideration of the following thresholds: a. Projects that would physically displace more than 50 homes (or 200 population) would not qualify for funding. b. Projects that would encroach into protected areas of natural habitat or located in areas where it can adversely affect rare and critically endangered species would not be funded. c. Projects that are located inside territories of indigenous minorities or groups that would qualify under the definition of indigenous people of World Bank OP 4.10. which does not or cannot provide any direct benefit to the group, either in terms of access to electricity or other programs shall not be funded. d. Projects that are assessed to be Category A or Category 1 as per GCF or AfDB categorization, respectively shall not be funded. e. Projects that would displace or render inaccessible Cultural Heritage sites shall not be funded.

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ESMF Nigeria Solar IPP Program (January 2019)

This document presents the Environmental and Social Management Framework (ESMF) that has been developed for the Program. The ESMF describes how the Program, through the AE (AFC) and the clients will manage the E&S risks and impacts of sub-projects. Though the Program will generally target projects with E&S risks that have limited adverse E&S impacts that are few in number, location specific and largely reversible or readily minimized, the ESMF has been written to provide a comprehensive set of E&S assessments tools, which will be deployed to ensure that sub-project specific E&S impacts are identified and managed effectively throughout the entire project cycle. The ESMF also sets out the capacity building and strengthening programs that will be adopted as part of the implementation of the Framework.

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ESMF Nigeria Solar IPP Program (January 2019) 1 INTRODUCTION 1.1 Background Nigeria has a population of over 190 million people and currently faces major energy challenges, with as much as 98 million people, ~55% of its citizens, lacking access to grid-connected electricity as at the end of 2015. Even with an installed capacity of ~11,165 MW as at December 2017, available daily generation capacity has been erratic, ranging from 3,000 MW to 5,000 MW due to gas, transmission and distribution constraints. This is short of the required electricity to supply the country’s huge and growing population. This shortfall in generation capacity has led to the proliferation of many individuals and businesses owning and using diesel generators, which are inefficient and polluting. Consequently, this situation has the resultant effect of increasing greenhouse gas (GHG) emissions in the country. Between the years 1990 through 2010, GHG emissions increased from 164 million tonnes (MT) CO2eq to 263MT CO2eq. Population growth, along with predicted economic growth is expected to drive GHG emissions to over 900 MT CO2eq by 2030. The installed energy mix in Nigeria is 26% from hydropower and 74% from oil, gas and other fossil fuels, highlighting the significant amount of room for the growth of solar power within Nigeria’s installed energy mix. It is estimated that 100 litres of diesel is used to produce 1MWh electricity. In relation to the Program, this could translate to a proposed 100 MW solar PV project having a potential to displace the burning of 2.3 million litres of diesel each year. Consequently, the proposed Program will significantly reduce GHG emissions in the project areas and ultimately reduce the carbon footprint of the Nation. Facing serious electricity supply deficit over many years, the Federal Government of Nigeria (“FGN”) is actively seeking to improve conditions for private investment in the power and energy sector. Solar power is a critical component of the power policy of the FGN, which has reaffirmed its commitment to increasing renewable energy capacity as a part of Nigeria’s Vision 2020. Overall, the Vision 2020 programme presents an ambitious goal of achieving 35,000 MW by 2020, of which 10% (3,500 MW) is targeted to be provided from renewable energy. To show its commitment to increasing generation and diversifying from thermal and hydropower, the FGN through the Nigerian Bulk Electricity Trading Plc (“NBET”), the off-taker, signed several utility scale solar Power Purchase Agreements (PPAs) in July 2016 to supply ~1,125 MW of power to the Nigerian

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ESMF Nigeria Solar IPP Program (January 2019) power grid. It was expected that the Program (a total of 14 IPP sub-projects1, mostly located in the northern part of Nigeria) will bring significant diversification from diesel generation sources. To date, none of these projects have been able to reach financial close. In support of the development and implementation of the Program, the Africa Finance Corporation (“AFC”), an Africa focused infrastructure financing institution with US$4.1 billion in total assets (as at December 2017) and the African Development Bank (“AfDB”), a pan-African development finance institution with more than 80-member states and 54 regional member countries; the two highest rated financial institutions in Africa, are together proposing to work with the Green Climate Fund (“GCF”) on a Nigeria Solar Intervention Program, which will catalyse the delivery of c.400MW of renewable power, (the “Program”), ensuring the successful financing, construction and operations of the first utility scale power projects in the country. The Program will consist of US$300 million to be equally provided by GCF, AfDB and AFC, and will provide concessional debt alongside local financial institutions for the construction of 3 – 5 sub-projects of the Program. The intent is for debt to be provided alongside local financial institutions in order to support an aggregate of sub-projects with total costs of up to US$467 million. Each of the 14 IPP’s will be required to submit relevant documentation and those that meet the selection criteria will be shortlisted. The Program is expected to reduce or avoid 476,487t CO2 eq on an annual basis (9,529,739 t CO2 eq. over the life of the Program), at least 1 million households in Northern Nigeria will be direct or indirect beneficiaries, reduce the perceived risks of investing in the Nigerian renewable energy sector and catalyse private sector investment in the sector. As part of the E&S safeguards documentation required to support the AfDB and AFC application for GCF funding, an Environmental and Social Management Framework (ESMF) is required for the program.

1.2 Rationale for the ESMF The ESMF is a framework tool that will be used to guide the environmental and social due diligence (ESDD) process on all sub-projects considered in the Program. Specifically, the ESMF will be used in guiding the design and due diligence process by ensuring that appropriate E&S management measures are

1 Solar Power projects in Nigeria with a signed Power Purchase Agreement (PPA) with the Federal Government of Nigeria and which are eligible to participate in the NSISP are referred to aa ‘sub-projects’.

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ESMF Nigeria Solar IPP Program (January 2019) considered across the entire lifecycle of the individual sub-projects to be finished under the Program. The ESMF provides specific details on the following: (a) safeguards standards and requirements that would be applied to sub-projects; (b) the process and procedures for the conduct of the ESDD process for sub-projects; (c) capacity building planning including budget and (d) other E & S requirements which may be applicable to the sub-projects.

1.3 Objectives of ESMF The objectives of this ESMF are: • To establish clear procedures and methodologies for the E&S planning, review, approval, and implementation of sub-projects to be financed under the Program; • To specify appropriate roles and responsibilities and outline the necessary reporting procedures, for managing and monitoring E&S concerns related to sub-projects; • To provide practical resources for implementing the ESMF, including general guidance on the development of E&S Management Plans (ESMPs) and their implementation.

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ESMF Nigeria Solar IPP Program (January 2019) 2 PROGRAM DETAILS AND SUB-PROJECTS 2.1 Introduction

Investment in solar power stations allows African countries to take advantage of a domestic, abundant and “green” energy source, and to enhance energy generation capacity needed to fuel economic growth and social progress. There is currently no utility scale solar IPP PV project in Nigeria. This Program is an opportunity to spearhead the development of the first of such sub-projects, which will have significant demonstration effect to the FGN and the energy and power market in the country with the seventh most populated country in the world (190 million) according the to the world population review2.

The main objective of the Program is to provide long term financing to selected sub-projects within the Program. The Program offers a financing package to selected sub-projects meeting selection criteria. Funding from the Program will be used to incentivize sponsors to optimize their financial structures and selection criteria will incorporate a ranking that will benefit projects which require less concessional funding as a percentage of project cost.

Under the Program, it is envisaged that GCF’s funding amount will be transferred to the AFC as governed by the Facility Agreement. The ‘transfer’ of funds will be structured as a loan between AFC and GCF, which AFC will subsequently on-lend3 to each of the selected projects. Thus, AFC will show as the lender of record for GCF funds provided to each of the selected projects, albeit through a separate tranche.

There are currently 14 solar IPP projects in Nigeria (Figure 2.1) with a proposed total generation capacity of 1,175MW. Of these, a total of 13 have already expressed interest to avail of financing from the Program. The proposed Program resources of $467 million is expected to be able to finance from 3 to 5 of these sub-projects. No other sub-projects outside the Program will be considered for funding. This ESMF sets out the ESDD process and procedures that will guide the management of E&S risks throughout the life cycle of selected projects.

3 As per the GCF E & S guidelines, the AFC in this transaction can be considered as a Financial Intermediary

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ESMF Nigeria Solar IPP Program (January 2019)

2.1.1 Typical Activities associated with solar power developments

Typical components 4 5 of solar power projects are presented below.

Photovoltaic system • Photovoltaic cells. • Ondulator (to turn DC into AC for compatibility with the grid). • Transformer (to take the voltage from the ondulator and raise it to the required grid transmission level). • Meters. Ancillary facilities • Fencing and security gates/posts. • Electric cables. • Housing (mostly temporary, during construction) and temporary and permanent storage facilities. • Access roads and tracks.

2.2 Location of the 14 IPP Solar projects In July 2016, the FGN signed PPAs for 14 solar power projects located in different parts of the country, mostly in northern Nigeria with a proposed total generation capacity of 1,175MW. The 14 projects are shown in Table 2.1 below.

Table 2.1. Summary of all the Solar IPP signed by the Federal Government of Nigeria

Project / Project Company State Capacity Land Financial (MW) requirements Close

1 Pan Africa Solar Katsina 75 120ha NO

2 Nigerian Solar Capital Partners Bauchi 100 TBC NO

3 Afrinegia Power Limited Nasarawa 50 TBC NO

4 KVK Power Limited Sokoto 50 178.9ha NO

5 Middle Band Solar One Kogi 100 TBC NO

4 https://www.ifc.org/wps/wcm/connect/f05d3e00498e0841bb6fbbe54d141794/IFC+Solar+Report_Web+_08+05.pdf?MOD=AJP ERES 5 https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/SSS_-_IESIA_Volume_3_-_En.pdf

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6 Novia Scotia Power Development Jigawa 80 TBC NO Company

7 CT Cosmos Plateau 70 TBC NO

8 Oriental Renewable Solutions Jigawa 50 TBC NO

9 Quaint Abiba Power Kaduna 50 TBC NO

10 Anjeed Innova Group Kaduna 100 262.77ha NO

11 EN Africa Kaduna 50 150ha NO

12 Motir Dusable Limited Enugu 100 TBC NO

13 Nova Solar 5 Farm Limited Katsina 100 TBC NO

14 LR Aaron Power Abuja 100 N/A N/A

*Project No 14 (LR Aaron Power) is not currently being considered for inclusion under the Program.

TBC . To be confirmed or information not yet available.

N/A. these are the projects within the 14 Solar IPP program which will not be considered for funding under the AFC-GCF program.

The locations of the 14 projects including the States are represented in Figure 2.1 below.

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Figure 2.1. Location of the 14 Solar IPP Projects

2.3 Location of the 13 sub-projects (with submitted Expressions of Interest) The locations of the 13 projects that have expressed interest to participate in the Program is presented in Figure 2.2 below.

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Figure 2.2. Location of 13 sub-projects that have expressed interest in availing the Program

The location of these sub-projects is significant for a variety of reasons: a. The bulk of them are situated in areas with high irradiance b. Apart from the positive environmental benefit associated with solar, solar energy is the most feasible way of generating power in Northern Nigeria. Most of the main Northern cities are located over 1,000 km from the main thermal power stations in the Southern part of the country. c. Solar has the potential to provide power to the underserved load centers and increase economic activity in Northern Nigeria.

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ESMF Nigeria Solar IPP Program (January 2019) d. With its location in Northern Nigeria, the Program has a key role in increasing generation capacity in power-starved areas and catalyzing economic development where the power shortage is the most severe with limited generation options. e. The bulk of the 13 sub-projects being considered under the Program are in the predominantly Derived Savannah and Guinea Savannah areas in Northern Nigeria which has high climate vulnerability, food insecurity, extensive deforestation, and with high dependency of the population on biomass energy as well as inefficient technologies which further aggravate the vulnerability of livelihoods to climate risk. f. Over 50% of the 13 sub-projects being considered for funding under the Program are in the 10 poorest states in Nigeria.

2.4 E&S Assessments related to Project Phases The 13 sub-projects are currently at various stages of project preparation. Hence, it is highly likely that by the time each sub-project is admitted to the Program (and is subjected to E&S due diligence), it may well be in the advanced stages of the safeguard preparation process following the Nigerian requirements and safeguards standards of some other funding agencies. Table 2.2 below outlines the typical E&S risk management activities and requirements which these sub- projects would ideally undergo.

Table 2.2. Typical solar power development project cycle

Project Phase Key Activities and Approaches to managing E & S impacts and risks The borrower/project proponent shall undertake: (i) Environmental and Social Site exploration/ Screening, Selection (ii) Preparation of Feasibility Study, and (iii) Preparation of ESIA Terms of Reference. Design, detailed engineering and financial planning are done just before project approval; at that stage, the borrower or client (or project proponent) should prepare an ESIA on the basis of the Terms of Reference prepared during the previous phase and integrate into the ESIA, the ff: Detailed • Environmental and Social Management Plan (ESMP). Engineering • Stakeholder Engagement Plan (SEP). Design • Resettlement Action Plan (RAP) as appropriate. It is also during this stage that the Project Sponsor undertakes: (i) a review and approval of ESIA, ESMP, SEP and RAP by AFC; (ii) Signing of Loan Agreement and covenants which may contain provisions for E&S safeguards. At this stage, the borrower/project owner will procure construction and supply contracts and undertake land acquisition and RAP implementation. Procurement and The borrower will submit a compliance report of the RAP implementation to the Pre-Construction AE. The AE will conduct monitoring and validation of the report at the project site. Construction Construction activities typically include:

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Project Phase Key Activities and Approaches to managing E & S impacts and risks • Establishing temporary access to work and ancillary areas, demarcating clearance zones, establishing access control. • Clearance and levelling of the site. • Location and development of borrow pits for construction materials; import of materials, e.g. gravel, clay, bitumen. • Sourcing and establishing of a water supply from surface and/or groundwater. • Improvement of existing drainage and creation of appropriate drainage channels as required. • Installation the solar devices (rows of photovoltaic panels in the simplest design, concentration devices for the more sophisticated solar power plants). • Connecting the solar power production system to the grid. • Landscaping, as required. The borrower/project owner will implement the ESMP and monitors compliance by contractors with the relevant construction standards and construction- related measures in the ESMP. The borrower/project owner will submit compliance report to the AE. The AE will conduct periodic Review Mission to the project site to undertake, among others: monitoring/audit of project’s ESMP performance and compliance with relevant E&S standards and any E&S-related provisions of the Loan Agreement or Covenant.

During operation, the principal activities will relate to the maintenance and repair of the photovoltaic cells, including cleaning of the solar ray receiving surfaces, repair of any damage to panels (eg due to severe weather conditions). The specific activities that contribute to direct and indirect impacts are detailed in Chapter 6 (impacts) and the potential mitigation measures that could be Operation and applied are detailed in Chapter 7 (mitigation measures) of the ESMF. Maintenance The borrower/project owner will undertake self-monitoring of compliance with O&M-related E&S Management measures and standards and submit a report the Project Sponsor. The AE will undertake monitoring of compliance with O&M-related E&S measures and remaining issues. At the end of the useful life of the solar plant, the plant itself and all ancillary components and facilities should be decommissioned and rehabilitated in accordance with a site-specific closure plan developed in consideration of international good practice.

The closure process will include site clearance, removal of all equipment, Decommissioning appropriate disposal of waste materials, soil ripping and re-grading, and (Closure) revegetation where necessary. Any access roads which are not public roads should be returned to an appropriate alternative land use (e.g. farmland, or natural vegetation cover).

The Project Owner will submit a Compliance Report which will be reviewed and validated by the Project Sponsor (AFC)

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ESMF Nigeria Solar IPP Program (January 2019) 2.5 Criteria for identifying sub-projects The actual sub-projects to be funded will be selected from among the 13 that have expressed interest in participating in the Program. The selection process will be undertaken in stages by AFC using a number of criteria, including ES risk-related criteria. Table 2.3 below summarizes the selection process.

Table 2.3. Approach to be used in selecting sub-projects for the AFC-GCF funding program.

Stage Description E&S Due Diligence While consideration was given to all 14 utility scale sub-projects currently under development, the AFC was aware that the senior debt financing currently Stage 1: under consideration by the AFC, AfDB Confirmation of and GCF, might not be applicable or of Interest, None interest to all sub-projects. Thus, sub- November 2018 projects were required to provide letters

of interest. The request for expression of interest was submitted to all 14 IPP sub-projects in November 2018. Of the 14 IPP’s, 13 have submitted letters confirming their interest in participating in the Program. Of these sub-projects, information requests have been made, entailing the submission of Stage 2: documentation covering 6 key areas, Information which will also be the basis of sub- E&S related information requested Packs, project assessment and selection: could come in any form at this stage, December i.e. not necessarily in the form of ESIA, 2018 1. General Project Information etc. 2. Environmental Impact 3. Social and Development Impact 4. Economic Potential 5. Project Readiness 6. Capacity and Expertise

The E&S Screening Checklist (Annex Sub-projects will be reviewed for any 1A) will be applied to these sub- Stage 3: KYC KYC concerns and addressed with projects using the information Review respective sponsors submitted. Additional information

such as specific site, etc. may be requested to complete the screening.

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Following a review of the information by Sub-projects that do not meet the E&S the AE and AfDB6, sub-projects will be eligibility criteria will not be shortlisted. shortlisted and then ranked. The top c.5 Stage 4: sub-projects will be notified and term For sub-projects that meet the E&S Ranking, sheets will be provided to begin eligibility criteria, the results of the Selection and negotiations. It is important to note that screening will input into the overall Negotiation the AE will not be delegating any of its ranking of candidate sub-projects. For

responsibilities to AfDB, specifically with example, projects that would entail regards to the ranking and selection more assessments and social planning process. could be given lower score. Selected sub-projects will be required to undertake and submit ESIA/ESMP and other required safeguards documents (e.g. RAP, SEP, Labor Management Plan, etc) as per result Following the successful negotiations of the E&S screening. These between the AE, lenders and the documents will be reviewed by the projects, all sub-project and financing AFC in accordance with this ESMF documents will be signed and once all and the attached RPF. While the sub- Stage 5: conditions precedents have been met, projects are being reviewed, the main Financial Close financial close will be declared. Once Safeguards Instruments (i.e. ESIA and and the first disbursement occurs, sub- RAP/LRP) shall be disclosed in Implementation project implementation will begin and accordance with this ESMF.

the AE will be responsible for providing the agreed monitoring and reporting The Loan Agreement should include documents from the sub-projects to the provisions for implementation of the GCF. ESMP, RAP/LRP and other E&S related plans by the borrower/project owner. Depending on the results of the review, additional specific E&S conditionalities or covenants could be included in the Loan Agreement.

The E&S screening and review of the sub-projects will be part of and will input into the selection process, along with other technical and financial criteria. The Program will generally target sub-projects with low E&S risks or Category B levels, or those that have limited adverse E&S impacts that are few in number, location specific and largely reversible or readily minimized. To ensure that no sub-projects with high E&S risks are funded, the Program will adopt a number of E&S risk-related eligibility criteria which will be implemented during the E&S Screening.

6 As is typical of project finance, all anchor lenders will be expected and required to obtain approval from their respective boards for the investment. In order to ensure an efficient process, AfDB will review the projects simultaneously with the AE in order to present the shortlisted projects for its own investment approval without any delays to the Program timelines.

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ESMF Nigeria Solar IPP Program (January 2019) 3 REGULATORY AND INSTITUTIONAL FRAMEWORK

3.1 Relevant Nigerian Policies, Legislations and Institutional Provisions 3.1.1 Nigerian Environmental and Social Safeguard Policies and Legal Provisions

National Policy on the Environment (1988) The National Policy on the Environment describes the conceptual framework and strategies for achieving the overall goal of sustainable development in Nigeria. Specifically, the goals of the Policy include to: • Secure a quality of environment adequate for good health and human well-being; • Conserve and use the environment and natural resources sustainably for the benefit of present and future generations; • Restore, maintain and enhance ecosystems and ecological processes essential for the functioning of the biosphere to preserve biological diversity and the principle of optimum sustainable yield in the use of living natural resources and ecosystems; • Raise public awareness and promote understanding of the essential linkages between the environment, resources and development, and encourage individual and community participation in environmental improvement efforts; and • Co-operate with other countries, international organizations and agencies to achieve optimal use of trans-boundary natural resources and effective prevention or abatement of trans-boundary environmental degradation. EIA Act Cap E12 LFN 2004 The Environmental Impact Assessment (EIA) Act No. 86 of 1992 as amended by EIA Act Cap E12 LFN, 2004 is the principal legislative instrument relating to activities that may likely or to a significant extent affect the environment. The Act sets the goals and objectives of EIA and procedures including the minimum requirements for the conduct of EIA of public or private projects. The Act makes EIA mandatory for all major development projects likely to have adverse impacts on the environment and gives specific powers to FMEnv to facilitate environmental assessment of projects in Nigeria. FMEnv categorizes mandatory study activities into three categories: Category 3 activities are considered to have beneficial impacts on the environment. For Category 2 activities (unless within the Environmentally Sensitive Area) full EIA is

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ESMF Nigeria Solar IPP Program (January 2019) not mandatory, while Category 1 activities require full and mandatory EIA. Projects are pre-listed into these categories based on type and whether it would involve physical intervention of the environment. Either the listing or the result of an Initial Environmental Evaluation (IEE) is used to determine projects requiring full EIA. Renewable energy projects, including solar power plants, are listed under Category 1 which requires full EIA requiring panel review or category 2 requiring partial EIA focusing on mitigation and environmental planning measures. The categorisation largely depends on the IEE and where such a project is located near an “Environmentally Sensitive Area” (ESA), the project is placed in Category 1. National Environmental Protection (Pollution Abatement in Industries and Facilities Generating Wastes) Regulations, 1991 The Regulations prohibit industry or facility from release of hazardous or toxic substances into the air, water of Nigeria’s ecosystems beyond the permissible limits of FEPA (now FMEnv). The Regulations further charge any industry or facility to: • Establish and maintain a pollution monitoring unit within their premises; • Ensure on site pollution control; and • Assign the responsibility for pollution control to a person or body accredited by the FMEnv. Section 5 of the Regulations mandate industry or facility to submit to the nearest office of FMEnv a list of chemicals used in the manufacture of its products, details of stored chemicals and storage conditions and where these chemicals were obtained, bought or sold. National Environmental Protection (Management of Solid and Hazardous Wastes) Regulations, 1991 These Regulations address handling and management of solid, radioactive and (infectious) hazardous waste. They define the objectives of management of solid and hazardous waste, the functions of appropriate Government agencies and obligations of industries. The Regulations mandate all industries to inform FMEnv of all toxic, hazardous and radioactive substances which they keep in their premises and/or which they discharge during their production processes. Schedule 12 and 13 of the Regulations provide a comprehensive list of all waste deemed to be hazardous and dangerous. National Environmental (Sanitation and Wastes Control) Regulations, 2009 The Regulations provide the legal framework for the adoption of sustainable and environment friendly practices in sanitation and control of solid wastes, hazardous wastes and effluent discharges to minimize pollution. Part 3 of the Regulations states that all owners or occupiers of premises shall provide waste receptacles for

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ESMF Nigeria Solar IPP Program (January 2019) storage before collection by licensed waste managers. In addition, the Regulations make it mandatory for facilities that generate waste, to reduce, reuse, recycle and ensure safe disposal to minimize pollution. The Regulations also spell out roles and responsibilities of State and Local Government Authorities. National Environmental (Electrical/Electronic Sector) Regulations, 2011 The principal thrust of this Regulation is to prevent and minimize pollution from all operations and ancillary activities of the Electrical/Electronic Sector. This Regulation covers both new and used Electrical/Electronic Equipment (EEE/UEEE). The principles of the Regulations are anchored on the 5Rs which are; Reduce, Repair and Re-use, Recycle and Recover as the primary drivers of the sector.

National Environmental (Noise Standards and Control) Regulations, 2009 The purpose of these Regulations is to ensure maintenance of a healthy environment for all people in Nigeria, the tranquillity of their surroundings and their psychological wellbeing by regulating noise levels. The Regulations prescribe the maximum permissible noise levels on a facility or activity to which a person may be exposed and provide for the control of noise and for mitigating measures for the reduction of noise. National Environmental (Surface & Groundwater Quality Control) Regulations 2011 The purpose of these Regulations is to restore, enhance and preserve the physical, chemical and biological integrity of the nation’s surface waters and to maintain existing water uses. The Regulations also seek to protect groundwater sources by regulating the discharge of hazardous wastes, fossil fuels energy and any other substances having the potential to contaminate groundwater. The Regulations also include amongst others, the application and general provisions of water quality standards for various uses such as agriculture, industrial, aquatic life and recreation. 3.1.2 Land Use Act CAP L5 LFN 2004 The Land Use Act is the legal framework for land acquisition and resettlement in Nigeria. The Act vests all land comprised in the territory of each State in the Governor of that State and requires that such land shall be held in trust and administered for the use and common benefit of all Nigerians. Specifically, the Act stipulates that: • All land in urban areas shall be under the control and management of the Governor of each State; and

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• All other land, subject to this Act, shall be under the control and management of the Local Government within the area of jurisdiction in which the land is situated. The Acts gives the government the right to acquire land by revoking both statutory and customary rights of occupancy for the overriding public interest. In doing so, the Act specifies that the State or Local Government should pay compensation to the current holder or occupier with equal value. 3.1.3 Nigerian Energy Sector Policies and Legal Provisions

National Energy Policy, 2003 The National Energy Policy highlights strategies for systematic exploitation of the energy resources, the development and effective use of energy manpower, supply of rural energy needs, efficient energy technology development and use, energy security, energy financing and private sector participation. The strategies are harmonized and grouped into short, medium and long – term measures for easier implementation. Specifically, for solar energy, the policy emphasize that the nation shall aggressively pursue the integration of solar energy into the nation’s energy mix and shall keep abreast of worldwide developments in solar energy technology. Some of the overarching objectives of the policy regarding solar energy are summarized as follows: • To develop the nation's capability in the utilization of solar energy; • To use solar energy as a complementary energy resource in the rural and urban areas; • To develop the market for solar energy technologies; and • To develop solar energy conversion technologies locally. The strategies adopted in the policy to achieve the above objectives include intensification of research and development in solar energy technology; promotion of training and manpower development; provision of adequate incentives to local manufacturers for the production of solar energy components and equipment; provision of adequate incentives to suppliers of solar energy products and services; Introducing measures to support the local solar energy industry; Providing fiscal incentives for the installation of solar energy systems; and Setting up and maintaining a comprehensive information system on available solar energy resources and technologies.

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Electric Power Sector Reform Act 2005 This Act provides for the licensing and regulation of the generation, transmission, distribution and supply of electricity in Nigeria. The Act establishes the NERC and empowers it to license and regulate persons engaged in the generation, transmission, system operation, distribution and trading of electricity. The Act provides requirements for licensing and stipulates that no person shall construct, own or operate an undertaking or in any way engage in the business of electricity generation (excluding captive generation), electricity transmission, system operation, electricity distribution or trading in electricity without a license except for generating electricity not exceeding 1MW in aggregate at a site or distribution of electricity with a capacity not exceeding 100 kilowatts (KW) aggregate at a site. The Act also makes special provisions for acquisition of land and access rights as it relates to generation, transmission and distribution companies. The EPSR Act affords rights holders and/or land occupiers to challenge the declaration by the Commission. It states that any person or group of persons including the right holders or occupiers affected by the decision of the Commission may apply to the Commission for a review of the Commission’s decision (Sections 77(8), 50(1) and 78(4), EPRS Act). The EPSR Act also affords the concerned aggrieved party the opportunity of being heard publicly in accordance with Sections 36 and 44 (1) (b) of the 1999 Constitution, as amended. Moreover, an aggrieved party may further appeal against the decision of the Commission to the Federal High Court (Section 49, EPSR Act). Energy Commission of Nigeria Act CAP 109 LFN 1990 The Act was promulgated to create the Energy Commission of Nigeria (ECN) with responsibility for coordinating and general surveillance over the systematic development of the various energy resources of Nigeria. Subject to this Act, the ECN is charged with the responsibility for the strategic planning and co-ordination of national policies in the field of energy in all its ramifications Nigerian Electricity Supply and Installation Standards (NESIS) Regulations 2015 These Regulations provide guidance, license terms and conditions to any person engaged in the generation, transmission, distribution, system operation, and trading in electricity or in any aspect in the value chain of electricity supply, including but not limited to engineering designs, installations, commissioning, decommissioning and maintenance of electric power systems for the purpose of achieving safe and reliable supply, and utilization of electricity in Nigeria.

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Acquisition of Land Access Rights for Electricity Projects Regulations, 2012 This is a Nigerian Electricity Regulatory Commission Act which provide a regulatory framework for the acquisition of land and access rights for electricity projects in Nigeria. This Act also stipulates provisions for the payment of compensation and resettlement of persons affected by the acquisition of their land for the establishment of electricity projects as well as the monitoring and evaluation of project designs of licensees to ensure compliance with environmental standards. The Regulations apply to the acquisition of land access rights for electricity in Nigeria, including projects related to generation, transmission and distribution of electricity. Roadmap for Power Sector Reform of August, 2010 The Roadmap reviews and fine-tunes plans and strategies to finalize the drive to complete power sector reform and sets the nation on a steady course to produce clean and efficient electricity for her citizenry at competitive rates. The Roadmap contained two core and fundamental objectives, which are; • to transition the Nigerian Power Sector into a private-sector led market by implementing the EPSRA 2005 transition (“The Reform Objective”) and • to support and improve service delivery levels during this transition to the Nigerian public (“The Service Delivery Objective”). Renewable Energy and Efficiency Master Plan (REEMP), 2016 The REEMP is a policy being implemented by Nigeria's Federal Ministry of Environment that aims to increase the contribution of Renewable Energy to account for 10% of Nigerian total energy consumption by 2025. The initial Renewable Energy Master Plan (REMP) was produced in 2006 but was recently updated and approved in June 2016 as the Renewable Energy and Efficiency Master Plan (REEMP). The REEMP articulates Nigeria’s vision and sets out a road map for increasing the role of renewable energy in achieving sustainable development. The policy primarily addresses Nigeria's need for increased electricity supply, improved grid reliability and security. The REMP is anchored on the mounting convergence of values, principles and targets as embedded in the National Economic Empowerment and Development Strategy (NEEDS), National Energy Policy, National Policy on Integrated Rural Development, the Millennium Development Goals (MDGs)7 and international conventions to reduce poverty and reverse global environmental change. The REMP set the framework for Nigeria to be less dependent on

7 It should be noted that in September 2015, the Sustainable Development Goals (SDGs) replaced the Millennium Development Goals (MDGs). The 8 MDGs were absorbed in the 17 SDGs. Ref http://www.sdgfund.org/mdgs-sdgs [Accessed 03/12/2018]

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ESMF Nigeria Solar IPP Program (January 2019) hydrocarbons and increases energy generation from the Sun, biomass conversion, small hydro plants and wind as well as other conventional technologies that will provide opportunities to empower people and communities in meeting their energy and developmental needs.

3.1.4 Other applicable E & S laws and regulations in Nigeria A summary of other relevant existing national laws and regulations is provided in Table 3.1.

Table 3.1. Other relevant national environmental protection regulations

Regulations Summary of Provisions

and protection of forestry resources in Nigeria.

Endanger Species The Act provides for the conservation and management of Nigeria’s wild life (Control of and prohibits the hunting, capture and trade of endangered species. International Trade and Traffic) Act CAP E9 LFN 2004

Harmful Wastes An Act to prohibit the carrying, depositing and dumping of harmful waste on (Special Criminal any land, territorial waters and matters relating thereto including penalty for Provisions etc.) Act offences for individuals and corporate bodies. The Act prohibits all activities CAP HI LFN 2004 relating to the purchase, importation, transit, transportation, deposit, storage or, sale of harmful wastes.

National These provisions seek to prohibit the import, manufacture, sale and the use Environmental of ozone-depleting substances as well as materials that contain these (Ozone Layer substances. Protection) Regulations, 2009

National The overall objective of these Regulations is to control erosion and flooding Environmental (Soil by checking all earth-disturbing activities, practices or developments for Erosion and Flood non-agricultural, commercial, industrial and residential purposes. Control) Regulations, 2011

Factories Act (CAP The Act establishes a legal framework for the registration of factories and to F1), 2004 make adequate provisions regarding the safety of workers against occupational hazards and to impose penalties for any breach of its provisions. All workplaces are covered by this Act.

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Regulations Summary of Provisions

Employee The Act provides compensation to employees who suffer from occupational Compensation Act, diseases or sustain injuries arising from accidents at workplace or in the 2010 course of employment. Payment of compensation (to the worker or to his dependents in case of death) by the employer is rooted in the accepted

principle that the employer has a duty of care to protect the health, welfare and safety of workers at work.

Nigerian Urban and The Act is aimed at overseeing a realistic, purposeful planning of the country Regional Planning to avoid overcrowding and poor environmental conditions. The Act Act CAP 138 LFN establishes that an application for land development would be rejected if 2004 such development would harm the environment or constitute a nuisance to the community.

Forestry Law CAP 51 The Forestry Law prohibits any act that may lead to destruction of or cause LFN 1994 injury to any forest produce, forest growth or forestry property in Nigeria. The law prescribes the administrative framework for the management, utilization and protection of forestry resources in Nigeria. EIA Procedural Procedural Guidelines for the conduct of EIA in Nigeria Guidelines, 1995 Categories I, II & III

Natural Resources The Natural Resources Conservation Act CAP 268 LFN 1990 is the most direct Conservation Act existing piece of legislation on natural resources conservation. The Act CAP 268 LFN 1990 establishes the Natural Resources Conservation Council, which is empowered to address soil, water, forestry, fisheries and wildlife conservation by formulating and implementing policies, programmes and projects on conservation of the country’s natural resources.

3.1.5 The Gender Policy Framework in Nigeria The 1999 Constitution the Federal Republic of Nigeria prohibits discrimination on the basis of places of origin, sex, religion, status, ethnic or linguistic association. Successive governments have always demonstrated commitment to upholding this and to promote gender equality and women’s empowerment in varying degrees. To facilitate gender equality and women’s empowerment, the FGN created favorable national legal and policy frameworks and put in place institutional mechanisms in this regard. Moreover, Nigeria, as a member of the United Nations, signed and ratified the various relevant international instruments, treaties and conventions without reservation. These instruments have always emphasized that member nations put in place the necessary mechanisms needed to eliminate gender discriminations, ensure equality and human dignity to all men and women.

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The FGN in 2000 adopted a National Policy on Women, in 2006, it was reviewed and upgraded to become the National Gender Policy. Other key government policies with gender equality and empowerment of women frameworks include the National Economic Empowerment and Development Strategies (NEEDS) in May 2004; and the Transformation Agenda of the immediate past administration who in developing the Vision 2020, had a ‘Special Interest Group on Women’ to oversee –the development of policy statements that engender ‘sustainable human and national development built on equitable contribution of the Nigerian women, men and children’.

3.1.6 National Gender Policy, 2006 Nigeria put together the National Gender Policy in 2006. Its overall goal is to promote the welfare and rights of Nigerian women and children in all aspects of life: political, social and economic. The policy seeks to plan, coordinate, implement, monitor and evaluate the development of women in the county. In concrete terms, the National Gender Policy in Nigeria focus on: • Contribution towards women’s empowerment and the eradication of unequal gender power relations in the workplace and economy, in trade unions and in broader society; • Encouragement of the participation, support and co-operation of men in taking shared responsibility for the elimination of sexism and redefining of oppressive gender roles; • Increase the participation of women in leadership and decision-making; • Ensure that through labour legislation and collective bargaining, the particular circumstances of women are considered and that measures are promoted to eliminate discrimination on the basis of gender; • Ensure that there is a gender perspective in all sectors of development.

3.2 Nigeria’s National Determined Contributions (NDC) on Climate Change Nigeria is committed to reduce Greenhouse Gas Emissions by 20% unconditionally and 45% with international support and has developed a Sectoral Action Plan (SAP)8 for the implementation of the NDC in the following key priority sectors: • Energy

8 http://climatechange.gov.ng/

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• Oil & Gas • Agriculture & Land Use • Power • Transport

Figure 3.1. Breakdown of Nigeria’s NDC Targets

The IPP Solar sub-projects under this Program will contribute to the Nigerian off- grid solar 13GW target. Recognising the consequences and adverse impact of climate change on Nigeria, the country joined the global community to adopt treaties meant to tackle climate change. Nigeria became a Party to the UNFCCC in 1992 and ratified the Convention in 1994, it also became a Party to the Kyoto Protocol in 2004. Nigeria ratified the Paris Agreement (PA) in March 2017, which was approved by the UNFCCC on the 16 May 2017 and entered into force on 15 June 2017. Due to the importance attached to the issues of climate change and global warming, and in view of the enormity of activities required for the implementation of the climate change treaties to which Nigeria is a Party, the FGN established the

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Department of Climate Change in the Federal Ministry of Environment to serve as the vehicle for driving National Climate Action efforts and actions.

The Federal National Adaptation Strategy and Action Plan9 outlines provisions for climate change adaptation in 13 key areas (i.e.: education, livelihood, commerce and industry, biodiversity, health and sanitation, etc.) which also includes provisions for state and local actions. The Paris Agreement recognises the gender-related dimensions of climate change by Parties to the UNFCCC, and Nigeria is a signatory of the PA, the ESMF will further delve into gender/women and climate change mitigation and adaptation for the 13 sub-projects. As the Nigerian Minister of the Environment noted: “Women’s responsibilities in households and communities, as stewards of natural and household resources, position them well to contribute to livelihood strategies adapted to changing environmental realities.” Nigeria recognizes the need to address climatic change in a policy responsive and strategic way. The country has a strategic goal of fostering a low-carbon, high growth economic development path and building a climate resilient society. This includes objectives related to climate change mitigation, adaptation, climate science and technology, public awareness, private sector participation, and strengthening national institutions and mechanisms. As part of the implementation of the sub-projects within the program, specific attention will be giving the mainstreaming of the NDC requirements and targets into the sub-project design and implementation.

3.3 International Conventions and Agreements Apart from the National Laws, Acts and Regulations, Nigeria is a signatory or party to many International Environmental Conventions and Treaties and has participated in many related conferences. A list of some of the relevant International Environmental Conventions and Treaties ratified by the Government of the Federal Republic of Nigeria are presented in

9 http://csdevnet.org/wp-content/uploads/NATIONAL-ADAPTATION-STRATEGY-AND-PLAN-OF-ACTION.pdf

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Table 3.2 below.

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Table 3.2. Selected international agreements and conventions to which Nigeria is a signatory

Regulations Year Adopted 1. United Nations Framework Convention on Climate Change (UNFCCC) 1992 2. Convention on Oil Pollution Preparedness, Response, and Co-operation 1990 3. Basel Convention on the Control of Transboundary Movements of 1989 Hazardous Wastes and their Disposal 4. Montreal Protocol on Substance that Deplete the Ozone Layer 1987 5. Vienna Convention on the Ozone Layer 1985 6. Convention on Conservation of Migratory Species of Wild Animals 1979 7. Convention on the Protection of the World Cultural and Natural Heritage 1975 (World Heritage Convention), Paris 8. Convention to Regulate international trade in Endangered species of 1973 Fauna and Flora (CITES) 9. Convention on the Conservation of Migratory Species of Wild Animals 1988 (CMS or Bonn Convention) (Signatory only) 10. African Convention on the Conservation of Nature and Nature Resource 1968 11. World Bank Operational Directive 4.01: Environmental Assessment, which 1991 classifies projects according to the nature and extent of their environmental impacts. 12. Gulf of Guinea Large Marine Ecosystem Project (GOG-LME) 1999 13. Convention on Biological Diversity (CBD) 1994

3.4 Nigerian Institutional Provisions and Arrangements This section highlights the relevant institutions with the core mandate for environmental protection and the power sector governance in Nigeria. The section succinctly summarises their roles and responsibilities as applicable to the implementation of sub-projects within the Program. 3.4.1 Federal Ministry of Environment The Federal Ministry of Environment (FMEnv) which was formerly known as the Federal Environmental Protection Agency (FEPA) was established in 1999 through Decree No. 58 of 1988 as amended by Decree No. 59 of 1992. The Ministry is the statutory government institution mandated to coordinate environmental protection and natural resources conservation for sustainable development in Nigeria. Some of the other mandates of the Ministry include: • Advising the Federal Government on national environmental policies and priorities, conservation of natural resources, sustainable development as well as scientific and technological activities affecting the environment and natural resources; and • Prescribing standards and formulating regulations on water quality, effluent limitations, air quality, atmospheric protection, ozone protection, noise control as well as the removal and control of hazardous substances.

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National Environmental Standards and Regulations Enforcement Agency (NESREA) The National Environmental Standards and Regulations Enforcement Agency (NESREA) was established by the NESREA Act of 30th July 2007 as an Agency of the FMEnv. NESREA is charged with the responsibility of enforcing all environmental laws, guidelines, policies, standards and regulations in Nigeria. It also has the responsibility to enforce compliance with provisions of international agreements, protocols, conventions and treaties on the environment to which Nigeria is a party.

3.4.2 Federal Ministry of Power Works and Housing The Federal Ministry of Power, Works and Housing (FMPWH) has the overall responsibility for the provision of power in the country by implementing generation, transmission and distribution projects in the sector and facilitating the emergence of a private sector led competitive and efficient electric power industry. The Ministry is guided by the provisions of the National Electric Power Policy (NEPP) of 2001, the Electric Power Sector Reform (EPSR) Act of 2005, and the Roadmap for Power Sector Reform of August 2010. The Ministry has four (5) parastatals relevant to the implementation of sub- projects: i. Energy Commission of Nigeria (ECN), ii. Nigerian Electricity Regulatory Commission (NERC), iii. Transmission Company of Nigeria (TCN) and iv. The Rural Electrification Agency (REA). v. Nigerian Bulk Electricity Trading Plc (NBET)

Nigerian Electricity Regulatory Commission (NERC) NERC is an independent regulatory body, established by the EPSR of 2005 to undertake technical and economic regulation of the Nigerian electricity supply industry. Essentially, NERC is set up to, license operators, determine operating codes and standards, establish customer rights and obligations and set cost reflective industry tariffs. NERC is responsible for the review of electricity tariffs, subsidy policies, promotion of efficient and environmentally friendly electricity generation and enforcing standards for electricity creation and use in Nigeria. NERC is largely responsible for regulating tariffs of power generating companies.

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Transmission Company of Nigeria (TCN) The Transmission Company of Nigeria (TCN) emerged from the defunct National Electric Power Authority (NEPA) as a product of the merger of the Transmission and Operations sectors and was incorporated in November 2005. TCN licensed activities include: electricity transmission, system operation and electricity trading which is ring fenced. The sub-projects will entail Grid Connection Agreement with TCN. Nigerian Bulk Electricity Trading Plc (NBET) The Nigerian Bulk Electricity Trading Plc, (NBET) (otherwise known as the Bulk Trader) was incorporated on July 29, 2010 as the Special Purpose Vehicle (SPV) to carry out the bulk purchase and resale of electric power and ancillary services from Independent Power Producers (IPP) and from the successor generation companies". NBET purchases electricity from the generating companies through Power Purchase Agreements (PPAs) and sells to the distribution companies (DisCos) and eligible customers through Vesting Contracts. Energy Commission of Nigeria (ECN) Energy Commission of Nigeria was created and saddled with the responsibility for coordinating and general surveillance over the systematic development of the various energy resources of Nigeria. The Commission is also charged with the responsibility for the strategic planning and co-ordination of national policies in the field of energy in all its ramifications Rural Electrification Agency The Rural Electrification Agency was set up by Section 88 of the Electric Power Sector Reform Act 2005 as the Implementing Agency of the FGN tasked with electrification of rural and unserved communities. The mission is to provide access to reliable electric power supply for rural dwellers irrespective of where they live and what they do, in a way that would allow for reasonable return on investment through appropriate tariff that is economically responsive and supportive of the average rural customer.

3.5 International Policies, Standards and Institutions This section describes international development institutions and their applicable E&S sustainability standards relevant to this ESMF and the implementation of sub- projects. 3.5.1 Green Climate Fund (GCF) The Green Climate Fund (GCF) established its overarching E&S Policy in 2018 which articulates how GCF integrates E&S considerations into its decision-making

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ESMF Nigeria Solar IPP Program (January 2019) and operations to effectively manage E&S risks and impacts and improve outcomes. The Policy reflects the commitment of GFC to effectively and equitably manage E&SE&S risks and impacts and ensure overall sustainability of all GCF-financed activities. Broadly, the policy applies to all GCF-financed activities of both public and private sector entities. The activities supported by GCF may include programmes and sub-projects. Through this policy, GCF will require that all GCF-supported activities will commit to: i. Avoid, and where avoidance is impossible, mitigate adverse impacts to people and the environment; ii. Enhance equitable access to development benefits; and iii. Give due consideration to vulnerable and marginalised populations, groups, and individuals, local communities, indigenous peoples, and other marginalized groups of people and individuals that are affected or potentially affected by GCF-financed activities. The General requirements for E&S risk management of the GCF are described below. Accreditation In order to ensure that the E&S standards of the GCF are met, GCF seeks to accredit all its entities and task them to deliver upon the objectives of GCF through the supported activities. All entities seeking accreditation must have in place Environmental and Social Management Systems (ESMS) that specify their capacities, standards and processes for screening, identifying, assessing, managing, and monitoring the potential E&S risks and impacts pursuant to the Environmental and Social Standards (ESS) standards of GCF.

Screening and risk categories The GCF, in line with its ESS standards, requires accredited entities (implementing entity or an intermediary entity) to screen activities that include programmes, projects and sub-project, and following the result of the screening, to assign appropriate risk categories consistent with their ESMS and the GCF ESS.

The screening categories are as set out in

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Table 3.3.

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Table 3.3. GCF Project Screening Categories

GCF Project Description Category Activities with potential significant adverse environmental and/or social risks Category A and impacts that, individually or cumulatively, are diverse, irreversible, or unprecedented Activities with potential limited adverse environmental and/or social risks and Category B impacts that individually or cumulatively, are few, generally site-specific, largely reversible, and readily addressed through mitigation measures Activities with minimal or no adverse environmental and/or social risks and/or Category C impacts. When a financial intermediary’s existing or proposed portfolio includes, or is High level of expected to include, financial exposure to activities with potential significant intermediation, I1* adverse E&S risks and impacts that, individually or cumulatively, are diverse, irreversible, or unprecedented When an intermediary’s existing or proposed portfolio includes, or is expected to include, substantial financial exposure to activities with potential limited adverse environmental or social risks and impacts that are few, generally site- Medium level of specific, largely reversible, and readily addressed through mitigation intermediation, I2* measures; and includes no activities with potential significant adverse E&S risks and impacts that, individually or cumulatively, are diverse, irreversible, or unprecedented When an intermediary’s existing or proposed portfolio includes financial Low level of exposure to activities that predominantly have minimal or negligible adverse intermediation, I3* E&S impacts. *Applicable when considering projects associated with financial intermediaries. Note that the Nigerian Solar IPP program is not expected to include financial intermediaries. However, in the loan agreement between the GCF and AFC, the AFC will be considered a financial intermediary. The ESMF as detailed in this document will be applied to all selected sub-projects identified for funding.

Environmental and Social Due Diligence under GCF GCF will conduct its E&S due diligence as part of its assessment of activities proposed for funding consideration. The purpose of GCF due diligence is to understand and evaluate how the E&S, including transboundary, risks and impacts are screened, assessed and planned to be mitigated and managed by the accredited entities. The due diligence of GCF will verify consistency of the assessments and proposed management measures by the accredited entities with the ESS standards and this policy and recommend to the Board for GCF financing only those proposed activities that meets the requirements for managing E&S risks and impacts, pursuant to the ESS standards and this policy.

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Environmental and social assessment GCF will require the accredited entities to undertake assessment of E&S, including transboundary risks and impacts to ensure that the activities proposed for GCF financing meet their E&S safeguards pursuant to the ESS standards of GCF and this policy. If the accredited entities are acting in an intermediary function, GCF will require the accredited entity to undertake all necessary measures to ensure that the executing entities fulfil the activity-level assessment requirements described in this section for each component sub-project and will conduct the necessary due diligence and oversight to ensure that these requirements are fulfilled. Environmental and social management plan (ESMP) GCF requires and ensures that the accredited entities develop ESMP that contain the measures to manage and mitigate the identified risks and impacts, pursuant to the ESS standards of the GCF and policy. If an accredited entity is acting in an intermediary function, the GCF will require the accredited entity to take all necessary measures to ensure that the executing entities fulfil the activity-level ESMP requirements discussed in this section, and the accredited entity will conduct the necessary due diligence and oversight to ensure that these requirements are fulfilled. Operational changes GCF requires the accredited entities to notify GCF when there are major changes in the activity design and execution, policy, and regulatory setting, receiving environment and community, unanticipated environmental risks and impacts, or other circumstances that raise or potentially raise the E&S risk category of GCF- financed activities. GCF also requires and ensures that the accredited entities undertake due diligence appropriate to the new E&S risk category of the activities and revise the ESMP to meet the requirements of their E&S safeguards, in a manner consistent with the ESS standards of GCF. Monitoring and reporting GCF will carry out monitoring and reporting functions related to the E&S performance of the accredited entities and the supported activities as required in the GCF monitoring and accountability framework. The monitoring will be a continuous process that allows disclosure pursuant to the monitoring and accountability framework and the Information Disclosure policy. The extent of monitoring will be based on the type and level of risks identified, including E&S risks.

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3.5.2 Africa Finance Corporation (AFC) AFC’s core mission is to address Africa’s infrastructure development needs while seeking a competitive return on capital for shareholders. Through the provision of project development expertise and risk capital, AFC is helping to fill Africa’s critical infrastructure void and ensuring that the positive economic growth momentum the region is currently experiencing is maintained and accelerated. AFC offers a unique value proposition as an Africa-focused multilateral financial institution covering three complementary service areas: project development, financial advisory and principal investing.

AFC’s Environmental and Social Risk Management Policy AFC has an approved Environmental and Social Risk Management Policy to ensure that it carries out its lending, investment and advisory services to its clients and counterparties in a manner that is environmentally sound and ensures sustainable development. The E&S Risk Management Policy is based on Good International Industry Practice reference frameworks, including the IFC Performance Standards on Environmental and Social Sustainability and the World Bank Environmental, Health and Safety Guidelines. If impact on the environment is unavoidable, or the successful conclusion of projects will affect local communities through displacement or other significant impacts, AFC will ensure that such impact is reduced, mitigated or that appropriate compensation is provided. Through its Environmental and Social Risk Management Policy, AFC is committed to ensuring that the cost of economic development do not fall disproportionately on those least able to bear those costs, that the environment is not degraded in the process and that natural resources are managed efficiently and in a sustainable manner. AFC believes that regular engagement with local communities about matters that directly affect them plays an important role in avoiding or reducing harm to people and the environment. Thus, AFC is committed to ensuring through its E&S assessment and monitoring process that the projects it develops, or the investments that it makes are: i. Socially and environmentally sustainable ii. Respectful of the right of affected communities iii. Structured and operating in compliance with the relevant regulatory requirements and with the best international practice.

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International Finance Corporation E&S Standards The IFC Performance Standards (PS) on Environmental and Social Sustainability describes IFC’s commitments, roles and responsibilities related to environment and social sustainability. The performance standards are directed towards clients, providing guidance on how to identify risks and impacts and are designed to help avoid, mitigate and manage risks and impacts as a way of doing business in a sustainable way including stakeholder engagement and disclosure obligations of the client in relation to project level activities. IFC requires its clients to apply the Performance Standards to manage E&S risks and impacts so that development opportunities are enhanced. IFC sets out eight (8) Performance Standards required by project proponents to meet throughout the life of an investment by IFC as set out below. • Performance Standard (PS) 1: Assessment and Management of Environmental and Social Risks and Impacts; • Performance Standard (PS) 2: Labour and Working Conditions; • Performance Standard (PS) 3: Resource Efficiency and Pollution Prevention; • Performance Standard (PS) 4: Community Health, Safety and Security; • Performance Standard (PS) 5: Land Acquisition and Involuntary Resettlement; and • Performance Standard (PS) 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources. • Performance Standard (PS) 7: Indigenous People • Performance Standard (PS) 8: Cultural Heritage Some performance standards may be triggered on the sub-projects and the appropriate level of E & S assessments will need to be undertaken. The Program will adopt a combination of Nigerian E&S regulations, the IFC performance Standards (which both GCF and AFC subscribe to) and the Integrated Safeguard Systems of the AfDB to manage E&S issues relating to the Program.

AFC’s Project Categorization

E&S risk categories are allocated by imputing project details into an automated categorization tool which assigns an E & S Category according to the project’s potential E & S risks and impacts and also indicates the applicable E & S requirements to follow. The E & S project categories considered by the AFC are set out in Table 3.4.

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Table 3.4. AFC Project Categorisation

Project Category Definition Projects with significant adverse E&S impacts that are diverse, irrevocable, or Category A (high unprecedented. These impacts cannot be mitigated or remedied or can only risk) be so at significant cost. Category B Projects with limited potential adverse E&S impacts that are site specific (medium risk) and may be readily addressed through mitigation measures. Category C Projects with minimal or no adverse E&S risks or impacts. (Low risk)

AFC ESDD process AFC’s ESDD process is premised on the categorization allocated to each project. Depending on the complexity and the E&S Category of the project, the ESDD can be a desk review, can include site visit or require a full-scale review conducted by a technically qualified person or E&S consultant The ESDD process for each project category type is presented in Table 3.5.

Table 3.5. AFC ESDD process

Project ESDD approach Category For Category A projects, assistance of an external expert is mandatory. The most important element of the ESDD is to determine the gaps between the current E&S performance and the benchmark performance/reference standards (IFC Performance Standards, World Bank EHS Sector Guidelines and the AFC’s E&S requirements). The gap analysis with regard to these requirements is considered crucial to ensure that the client is managing E&S risks in accordance with local or internationally recognized E&S risk management standards and laws (whichever is more stringent). The gap analysis must be provided by a qualified external expert. It must lead to the formulation of a reasonable action plan, which describes all the Category actions necessary to achieve AFC’s E&S requirements in a given time frame after A factoring in the criticality of the E&S risks.

The ESDD for Category A projects involves the following steps: • Requiring the client to fill in AFC’s E&S Questionnaire; • Handing over to the client the relevant, sector-specific Sector Guidelines • Requiring the client to prepare a gap analysis between client’s performance and the performance defined in the IFC Performance Standards and World Bank EHS Sector Guidelines with the help of an external expert; • Collecting and studying original ESIA documents or other relevant documents;

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• Carrying out research on potential risks/non-governmental organizations’ (“NGO”) interest; • Site visit by an external E&S consultant; and • Preparing a CESAP if the AFC’s E&S requirements are not met (based on the gap analysis’s findings). For Category B projects, the AFC E&S Due Diligence Questionnaire and E&S sector- specific Questionnaire is used to assess the E&S impacts and risks. If any red flag issues become apparent, further investigations are initiated and external consultants’ involvement may be necessary. If considered necessary by the E&S Risk Officer or external consultant, a Client E&S Action Plan (CESAP) and mitigatory activities, leading the client to eventual compliance with AFC’s E&S requirements must be developed.

The ESDD for Category B projects involves the following steps: ▪ Requiring the client to fill in AFC’s E&S Due Diligence Questionnaire and the E&S sector-specific Questionnaire; Category ▪ Collecting and studying original Environmental and Social Impact Assessment B (“ESIA”) documents or other relevant documents (audit reports, etc.) ▪ Carrying out research on potential risks / potential NGO interest; ▪ Optionally - visit the site; ▪ Optionally - preparing a CESAP if the AFC’s E&S requirements for Category B projects are not met; and ▪ Optionally - assistance of an external expert.

Based on the ESDD, the ESRO will prepare an Environmental and Social Review Summary report (“ESRS”), containing the various mitigation measures.

Category For Category C projects, no extensive ESDD is necessary. Compliance with E&S laws is C checked, and a reputational risk screening is conducted.

AFC Gender Policy

AFC has a Gender Policy, which seeks to integrate gender considerations in its investment activities. AFC’s approach and commitment to its gender policy as it relates to its investment activities, implies that AFC will: i. work towards conducting gender analysis to ensure that gender issues are addressed as part of its investment process; ii. encourage investment entities to educate their supply chain in managing gender equity in accordance with global best practice; iii. integrate gender equity assessment into the AFC Investment process; iv. not establish business relationships with organizations that condone, support or otherwise participate in trafficking, including labor or sexual sexploitation; v. include sex disaggregated data in E&S action plans.

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3.5.3 The African Development Bank (AfDB) Integrated Safeguards System (ISS) The E&S safeguards of the AfDB are a cornerstone of the Bank’s support for inclusive economic growth and environmental sustainability in Africa. AfDB will apply the Integrated Safeguards System for all projects considered under the Program’s framework. The Bank ISS is designed to promote the sustainability of project outcomes by protecting the environment and people from the potentially adverse impacts of projects. This requires that all the projects will comply with these safeguards requirements of the ISS during project preparation and implementation. The safeguards aim to: • Avoid adverse impacts of projects on the environment and affected people, while maximising potential development benefits to the extent possible; • Minimise, mitigate, and/ or compensate for adverse impacts on the environment and affected people when avoidance is not possible; and • Help borrowers/clients to strengthen their safeguard systems and develop the capacity to manage E&S risks. The ISS consists of four interrelated components as summarized in Figure 3.2 below.

Figure 3.2. Structure of the AfDB ISS

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The Integrated Safeguards Policy Statement Describes common objectives of the Bank’s safeguards and lays out policy principles. It is designed to be applied to current and future lending modalities, and it takes into account the various capacities and needs of regional member countries in both the public and private sectors.

The Integrated Safeguards comprises of Policy Statement that sets out the basic tenets that guide and underpin the Bank’s approach to environmental safeguards. The Bank’s Integrated Safeguards Policy Statement sets out the Bank’s own commitments to and responsibilities for delivering the ISS: to

i. ensure the systematic assessment of E&S impacts and risks; ii. apply the Operational Safeguards to the entire portfolio of Bank operations; iii. support clients and countries with technical guidance and practical support in meeting the requirements; iv. implement an adaptive and proportionate approach to E&S management measures to be agreed with clients as a condition of project financing; v. ensure that clients engage in meaningful consultations with affected groups; and vi. respect and promote the protection of vulnerable groups, in a manner appropriate to the African context

Operational Safeguards (OSs) These are a set of five safeguard requirements that Bank clients are expected to meet when addressing social and environmental impacts and risks. Bank staff use due diligence, review, and supervision to ensure that, clients comply with these requirements during project preparation and implementation. Over time the Bank may adopt additional safeguard requirements or update existing requirements to enhance effectiveness, respond to changing needs, and reflect evolving best practices. The OSs are intended to: • Better integrate considerations of E&S impacts into Bank operations to promote sustainability and long-term development in Africa; • Prevent projects from adversely affecting the environment and local communities or, where prevention is not possible, minimise, mitigate and/or compensate for adverse effects and maximise development benefits;

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• Systematically consider the impact of climate change on the sustainability of investment projects and the contribution of projects to global greenhouse gas emissions; • Delineate the roles and responsibilities of the Bank and its borrowers or clients in implementing projects, achieving sustainable outcomes, and promoting local participation; and • Assist regional member countries and borrowers/clients in strengthening their own safeguards systems and their capacity to manage E&S risks. The five operational safeguards of the AfDB are presented in Table 3.6.

Table 3.6. AfDB Operational Safeguards OS1-5

Operational Safeguard Description This overarching safeguard governs the process of determining a project’s OS 1: Environmental environmental and social category and the resulting environmental and and social assessment social assessment requirements OS 2: Involuntary This safeguard consolidates the policy commitments and requirements set Resettlement: Land out in the Bank’s policy on involuntary resettlement and incorporates a few Acquisition, Population refinements designed to improve the operational effectiveness of those Displacement and requirements Compensation This safeguard aims to conserve biological diversity and promote the OS 3: Biodiversity and sustainable use of natural resources. It also translates the commitments in Ecosystem Services the Bank’s policy on integrated water resources management into operational requirements. OS 4: Pollution This safeguard covers the range of key impacts of pollution, waste, and Prevention and hazardous materials for which there are agreed international conventions, Control, Greenhouse as well as comprehensive industry-specific and regional standards, Gases, Hazardous including greenhouse gas accounting, that other multilateral Materials and development banks follow. Resource Efficiency This safeguard establishes the Bank’s requirements for its borrowers or OS 5: Labour clients concerning workers’ conditions, rights and protection from abuse or Conditions, Health and exploitation. It also ensures greater harmonisation with most other Safety multilateral development banks.

Environmental and Social Assessment Procedures (ESAPs) The Bank’s ESAPs details the specific procedures that the Bank and its borrowers or clients should follow to ensure that Bank operations meet the requirements of the operational safeguards (OSs) at each stage of the Bank’s project cycle.

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Its adoption and implementation enhance the E&S performance of the Bank’s operations and improve project outcomes. The ESAPs will help to improve decision-making and project results by ensuring that Bank-financed operations conform to the requirements laid out in the operational safeguards (OS) and are thus sustainable. The ESAP describes how the Bank and its borrowers should work together to ensure that environmental, climate change and social considerations are integrated into the project cycle from country programming to post completion. It represents a coordination mechanism between the Bank, relevant government agencies and private sector entities and plays an important role in building the environmental, social and climate change management capacity of the project’s executing agency. The Environmental and Social Assessment procedures apply during the entire project cycle, with differentiated tasks to be performed, roles and responsibilities for the Bank and its borrowers and clients. Also, the Bank has an integrated system which will be used to ensure its E & S requirements are incorporated effectively into the whole programme cycle, i.e., Integrated Safeguards Tracking System (ISTS). The ISTS constitutes an integral part of the ESAP. A summary of the key requirements of the ESAP during each project stage is presented in

Table 3.7 below10.

Table 3.7. Summary of the AfDB Project Cycle and E & S requirements

AfDB Project Details Cycle • During country programming, the key task is to develop and update baseline data on RMCs’ E&S components, policies, programs, and Country capacities to better integrate E&S dimensions into lending priorities. Programming • These are the responsibilities of the Bank’s Sector Departments and Phase Regional Departments.

• At the project identification phase, the screening exercise focuses on the Project E&S dimensions of a project to categorize it in one out of four categories Identification based on the potential adverse E&S impacts of the project. Phase • These tasks will be carried out by the Bank in collaboration with the clients.

10More details can be found at this link: https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/SSS_%E2%80%93vol1_%E2%80%93_Issue4_-_EN_- _Environmental_and_Social_Assessment_Procedures__ESAP_.pdf

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AfDB Project Details Cycle • During project preparation, the scoping exercise helps to define the scope of the Environmental and Social Assessments (ESA) to be completed by the Borrower based on the project category, with the assistance of staff from the operational departments. • The preparation of these assessments including the development of management plans and systems requires consultations with primary and Project secondary stakeholders. Preparation • Once ESAs are finalized, the review process allows operational Phase departments to ensure that Bank’s vision, policies, and guidelines were adequately taken into account in project design and implementation. • The clients/borrower will be in charge of the preparation of the required studies and plans while the Bank will be responsible for reviewing and validating the studies and plans.

• During the appraisal phase, ESIA Summaries shall be reviewed and cleared by the Safeguards and Compliance Department (SNSC). • The procedures require the public disclosure of summaries in accordance with specified deadlines. o All Category 1 operations shall be disclosed for 60 days before Board deliberations. This is specific to the Nigeria Solar IPP SPV Project entities only, because other Category 1 projects (public sector) Appraisal require a 120-day disclosure period Phase o All category 2 operations shall be disclosed for 30 days before Board deliberations. • The Bank will be responsible for conducting site visits and verification activities with respect to the studies, plans, and systems developed by the borrowers.

• At the project implementation phase, the Borrowers shall ensure the implementation of E&S management plans developed to address adverse impacts, while monitoring the project impacts and results. Project • The Bank’s operational staff shall supervise the Borrowers’ work and verify Implementation compliance through supervision missions and/or E&S audits, whenever Phase necessary. • Audits are undertaken during the completion phase, and post evaluations shall also aim to assess the E&S sustainability of the results.

Integrated Environmental and Social Impact Assessment (IESIA) Guidance Notes The IESIA Guidance Notes provide technical guidance to the Bank’s borrowers or clients on standards on sector issues or on methodological approaches clients or borrowers are expected to adopt to meet OS standards. The Integrated Environmental and Social Impact Assessment (IESIA) Guidance notes provide a

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ESMF Nigeria Solar IPP Program (January 2019) systematic process for addressing sub-projects’ E&S impacts with a clear understanding of the specific sector characteristics. The IESIA Guidelines’ major objective is to provide reference material to the staff of the Bank and RMCs on how to adequately consider crosscutting themes while assessing the E&S impacts of a sub-project. Moreover, the IESIA Guidelines can greatly assist in the project design, as many potential adverse impacts can be avoided or mitigated by modifying or adding certain project components to the initial design. As well, improvements in the project design can enhance several beneficial impacts at a minimal cost. Therefore, the IESIA Guidelines provide guidance on how to adequately consider the Bank’s priority crosscutting themes in both the preparation and assessment phases. Thus, the staff of the Bank and RMCs should refer to the IESIA Guidelines from the beginning of the project cycle to the end. The IESIA Guidance notes complement the guidance and formats provided in ESAP and provide guidance to RMCs when undertaking E&S Assessments for Bank-financed projects/programs. It will also be used by the Bank’s Operational staff in reviewing and clearing these studies and in project supervision. The provision of high-quality technical guidance is key to ensuring effective compliance, capacity and ownership of the ISS for Bank staff and borrowers alike. The IESIA Guidance Notes are presented in three standalone volumes that provide guidance in the three essential components of: i. the Environmental and Social Assessment process, ii. specific topics and operational safeguard requirements, and iii. technical guidance on key sectors and subsectors that have been proposed by operational departments as areas where guidance is needed.

AfDB Project Categorisation Process The ESAP also includes procedural requirements such as the categorization of projects, disclosure and monitoring of projects during implementation and operation. All projects under the Nigerian Solar IPP program will be categorized and structured to meet AfDB ISS requirements. These are further outlined below. In accordance to AfDB ISS, each sub-project will undergo E&S appraisal in order to determine whether the project can be financed as well as ensuring that the E&S considerations are incorporated effectively in the planning, implementation, and operation of the sub-projects. Each sub-project under the AFC-AfDB-GCF program will undergo initial E&S screening and be categorized accordingly at the

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ESMF Nigeria Solar IPP Program (January 2019) initial stage of the project cycle, to determine the nature and level of E&S investigations, information disclosure and stakeholder engagement required. The categorization shall be done according to the guidance stipulated in the AfDB ESAPs. A summary of the AfDB’s project categorization process (detailed in the ESAP) is set out in Table 3.8.

Table 3.8. AfDB Project Categorization process

AfDB Project Description Category • Projects likely to cause significant E&S impacts. • Category 1 projects are likely to induce significant and/or irreversible adverse environmental and/or social impacts, or to significantly affect Category 1 environmental or social components that the Bank or the borrowing country considers sensitive.

• Projects likely to cause less adverse E&S impacts than Category 1. • Category 2 projects are likely to have detrimental site-specific environmental and/or social impacts that are less adverse than those of Category 1 projects. Category 2 • Likely impacts are few in number, site-specific, largely reversible, and readily minimized by applying appropriate management and mitigation measures or incorporating internationally recognized design criteria and standards.

• Projects with negligible adverse E&S risks • Category 3 projects do not directly or indirectly affect the environment adversely and are unlikely to induce adverse social impacts. They do not require an E&S assessment. • Beyond categorization, no action is required. Category 3 • Nonetheless, to design a Category 3 project properly, it may be necessary to carry out gender analyses, institutional analyses, or other studies on specific, critical social considerations to anticipate and manage unintended impacts on the affected communities.

• Projects involving lending to financial intermediaries (FI). • Category FI projects involve lending to financial intermediaries that on- lend or invest in sub-projects that may produce adverse E&S impacts. Category FI • FIs include banks, insurance, reinsurance and leasing companies, microfinance providers, private equity funds and investment funds that use the Bank’s funds to lend or provide equity finance to their clients.

Subcategory • The financial intermediary’s portfolio is considered high risk, and it may FI-A include sub-projects that have potentially significant adverse

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AfDB Project Description Category environmental, climate change, or social impacts and that are equivalent to Category 1 projects.

• The financial intermediary’s portfolio is deemed to be medium risk, and may include sub-projects that have potential limited adverse Subcategory environmental, climate change, or social impacts and that are equivalent FI-B to Category 2 projects

• The financial intermediary’s portfolio is considered low risk and includes Subcategory sub-projects that have minimal or no adverse environmental or social FI-C impacts and that are equivalent.

The sub-projects will then be subjected to an appropriate E&S assessment and mitigation measures will be formulated to ensure E&S considerations are incorporated in the course of implementing the particular sub-projects within the Program.

3.6 Environmental and Social Assessment of Nigerian Policies and Legislations, IFC Performance Standards and AfDB Safeguard Systems The E&S risk categorization of AfDB, AFC and IFC/GCF are comparable and somewhat equivalent. Futhermore, the Nigerian Country system requires that EIAs be conducted all projects that meet certain criteria. Table 3.9 below provides a comparison between the Nigerian, the AfDB and IFC/GCF E&S safeguards systems. The comparison shows that the Nigerian Environmental and Social Safeguards system addresses most of the key elements of Environmental and Social Safeguards except for the preparation of ESMF for projects involving multiple sub-projects, indigenous peoples, and the required differentiated treatment of vulnerable groups. The AfDB and IFC/GCF systems can be deemed materially equivalent, although the GCF/IFC system provides special focus on some issues such as on community health and safety and security, indigenous peoples, and vulnerable groups. The AfDB has five standards (OSS1 to 5) whereas the IFC has eight; but the three IFC/CGF standards are covered under AfDB’s OSS1. As such, if a sub-project is fully compliant with IFC/GFC standards, then it can also be deemed materially in compliance with AfDB’s ISSs.

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The main challenge facing E&S safeguarding in Nigeria is the enforcement of these policies, guidelines and legislative provisions. Thus, as part of this ESMF, in order to support the due diligence process, to avoid causing harm and to ensure consistent treatment of E&S issues across the sub-project intervention areas, institutional capacity strengthening and funding have been recommended.

Table 3.9. Comparison of Nigerian Legal Provisions, AfDB ISS specifications and IFC Performance Standards (for AFC and GCF)

Key Element Nigerian Provisions AfDB Integrated IFC Performance Standards (AFC Safeguard System and GCF requirements) ESMF for Not a national OS 1: PS 1: Assessment and Management Programs requirement Environmental and of Environmental and Social Risks involving social assessment and Impact multiple but still unidentified sub-projects. Screening EIA Act Cap E12 LFN OS 1: PS 1: Assessment and Management 2004 Environmental and of Environmental and Social Risks social assessment and Impact Scoping EIA Act Cap E12 LFN OS 1: PS 1: Assessment and Management 2004 Environmental and of Environmental and Social Risks social assessment and Impact Environmental EIA Procedural IESIA Guidance PS 1: Assessment and Management and Social Guidelines, 1995 Notes of Environmental and Social Risks Impact EIA Sectoral ESAP and Impact Assessment Guidelines for Power Guideline Sector, 2013 Environmental EIA Procedural OS 1 – Categories PS 1: Categories A, Category B and Categorization Guidelines, 1995 1, 2, 3 and FI for Category C and Category FI for Categories I, II & III operations lending to Financial Intermediaries involving lending to financial intermediaries. Environmental EIA Act Cap E12 LFN OS 1: PS 1: Assessment and Management and Social 2004 Environmental and of Environmental and Social Risks Assessment social assessment and Impact Environmental EIA Act Cap E12 LFN OS 1: PS 1: Assessment and Management and Social 2004 Environmental and of Environmental and Social Risks Management social assessment and Impact Plan Consultation EIA Act Cap E12 LFN OS 1 (include PS 1: Assessment and Management and 2004 provision of IESIA of Environmental and Social Risks Participation Guidance Notes and Impact on consultation) Involuntary - Land Use Act OS 2: Involuntary PS 5: Land Acquisition and Resettlement CAP L5 LFN 2004 Resettlement: Involuntary Resettlement - Acquisition of Land Acquisition, Land Access Population Rights for

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Key Element Nigerian Provisions AfDB Integrated IFC Performance Standards (AFC Safeguard System and GCF requirements) Electricity Displacement and Projects Compensation Regulations, 2012 Compensation Cash compensation OS 2: Affected PS 5: Land Acquisition and is generally made Persons are Involuntary Resettlement based upon market compensated for value. Whilst in all their losses at principle there is full replacement allowance cost. They can be for in-kind offered a range of compensation or different replacement of compensation assets, cash packages, compensation is resettlement common practice assistance, and livelihood improvement options. Pollution National Operational PS 3: Resource Efficiency and Prevention Environmental safeguard 4 – Pollution Prevention and Control Protection (Pollution Pollution Abatement in prevention and Industries and control, hazardous Facilities Generating materials and Wastes) resource Regulations, 1991; efficiency and National Environmental (Surface & Groundwater Quality Control) Regulations 2011 Greenhouse National Operational PS 3: Resource Efficiency and Gases Environmental safeguard 4 – Pollution Prevention Protection (Pollution Pollution Abatement in prevention and Industries and control, hazardous Facilities Generating materials and Wastes) resource Regulations, 1991 efficiency (Special screening for GHGs is also considered under OS 1) Waste and - National Operational PS 3: Resource Efficiency and Hazardous Environmental safeguard 4 – Pollution Prevention Materials Protection Pollution (Management of prevention and Solid and Hazardous control, hazardous Wastes) Regulations, materials and 1991

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Key Element Nigerian Provisions AfDB Integrated IFC Performance Standards (AFC Safeguard System and GCF requirements) - Harmful Wastes resource (Special Criminal efficiency Provisions etc.) Act CAP HI LFN 2004 Resources and Natural Resources Operational PS 6: Biodiversity Conservation and Conservation Conservation Act safeguard 3: Sustainable management of Living CAP 349 LFN 1990 Biodiversity and natural Resources Ecosystem Services

Labour Employee Operational PS 2: Labour and Working Conditions Conditions Compensation Act, safeguard 5 – 2010 Labour conditions, Labour Act, 1990 health and safety Health and Factories Act (CAP Operational PS 2: Labour and Working Conditions Safety F1), 2004 safeguard 5 – for occupational health and safety Labour conditions, PS 4: Community Health, Safety and health and safety Security Natural Forestry Law CAP 51 Operational PS 6: Biodiversity Conservation and Habitat and LFN 1994 safeguard 3: Sustainable management of Living Biodiversity Endangered Biodiversity and natural Resources Species (Control of Ecosystem International Trade Services and Traffic) Act No. 11 of 1985Natural Resources Conservation Act CAP 349 LFN 1990 Gender National Gender Special Annex XIII Gender Policy for the Policy 2010 consideration is Green Climate Fund paid to the needs and rights of women in the ISS. In the context of gender vulnerability, the client must consider the social and political constraints and barriers that women may face. Vulnerable Some Nigerian OS 1: GCF’ Environmental and Groups policies address the Environmental and SocialPolicy needs of vulnerable social assessment. people, such as Special attention is the Gender Policy, given to Child Act or NEEDS vulnerable groups. framework. However, there are no specific provisions related to

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Key Element Nigerian Provisions AfDB Integrated IFC Performance Standards (AFC Safeguard System and GCF requirements) Environmental & Social Assessment. Indigenous No provision for OS 1: PS 7: Indigenous people People indigenous people Environmental and Indigenous Peoples policy of the Social Assessment GCF Differentiated No provisions (Provision for GCF’ Environmental and Social Measures for differentiated Policy Vulnerable measures for Group inclusion)

Environmental EIA Act Cap E12 LFN ESAP PS 1: Assessment and Management Monitoring 2004 of Environmental and Social Risks and Impact Disclosure and EIA Act Cap E12 LFN OS 1: PS 1: Assessment and Management Access to 2004 Environmental and of Environmental and Social Risks Information social assessment and Impact

3.7 Disclosure Requirements Disclosure of information will enhance governance and accountability specifically with respect to strengthening of monitoring indicators to facilitate the monitoring of compliance with the agreements and assess impact on outcomes. The disclosure duration requirements of the Nigerian Federal Ministry of Environment (FMEnv), the GCF and the AfDB are presented in Table 3.10. Disclosure duration requirements for AFC and GCF’s Category B and AfDB’s Category 2 projects are the same at 30 days which is longer than FMEnv. All sub- projects to be funded by the Program therefore shall comply with the disclosure requirements of 30 days.

Table 3.10. Disclosure requirements of the FMEnv, GCF, AFC and AfDB

Project Disclosure Entity Project Type Disclosure documents Category Requirements*

Public and Category 1 & FMEnv ESIA 21 Private sector 2

n/a Category A ESIA / ESMP 120 GCF n/a Category B ESIA/ESMP 30

n/a Category A ESIA/ESMP 120 AFC n/a Category B ESIA/ESMP 30

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Category 1 ESM/ESMP, ARAP or FRAP 120 Public Sector Category 2 ESMP 30 AfDB Category 1 ESM/ESMP, FRAP 60 Private Sector Category 2 ESMP 30

Note that the disclosure requirements for E & S documentation related to Financial Intermediaries is not included in the table, because none of the sub-projects associated with the Nigerian Solar IPP program will be managed by an FI.

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ESMF Nigeria Solar IPP Program (January 2019) 4 ENVIRONMENTAL AND SOCIAL BASELINE INFORMATION

4.1 Energy Distribution and Access Nigeria faces significant challenges in energy access. At present, 80 million people lack access to grid electricity, with the national electrification rate at 58 percent and only 41 percent in rural areas. The majority of the unserved people live in rural areas and rely on candles and flashlights for lighting. To achieve universal access to electricity by 2030, Nigeria would need to connect between 500,000 to 800,000 households per year and add around 25 GW to its actual operating capacity. The provision of regular, affordable and efficient electricity is crucial for the growth, prosperity, national security as well as the rapid industrialization of any society. However, the current status of electricity generation in Nigeria with regards to its population is grossly inadequate. With an estimated 50% of Nigeria’s population living without grid connected electricity, this issue has been identified as the underlying challenge hampering economic development and productivity in Nigeria. Nigeria is the largest economy in sub-Saharan Africa, but limitations in the power sector constrain growth. Nigeria is endowed with large oil, gas, hydro and solar resource, and it already has the potential to generate 12,522 megawatts (MW) of electric power from existing plants (10,142 MW from thermal plants and 2,380 MW from hydro), but most days is only able to generate around 4,000 MW, which is insufficient. Nigeria has privatized its distribution companies, so there is a wide range of tariffs. Current access rate in Nigeria is 45% with 36% in the rural areas and 55% in the urban areas11. In response to the challenges of the power sector and to boost cleaner energy production in line with the Paris agreement of the UNFCCC, Nigerian Government has given licences to 14 Solar IPP sub-projects which aims to contribute over 1,000MW to the national grid. The AFC and AfDB in a bid to encourage clean energy production are considering giving support to some of these sub-projects to help them see the light of the day.

11 https://www.usaid.gov/sites/default/files/documents/1860/Nigeria_-_November_2018_ Country_Fact_Sheet.pdf

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4.2 Physical Environment Random baseline information was taken from across the sub-projects. The biophysical environment of the areas where the sub-projects being considered for the Program are mainly situated in Northern Nigeria. The Federal Republic of Nigeria is a country located in West Africa on Latitudes 4000N and 14000N and longitudes 2050’E and 14045’E. The country is bordered to its North by Niger Republic for up to 1,497km, bordered to the Northeast by Lake Chad while the border at the south is to the Gulf of Guinea and Republic of Benin to the West, as well as Cameroon to its east. Nigeria is divided into six geopolitical zones with the North having three zones and the south having three zones.

4.2.1 Climate Nigeria in general has hot climate throughout the year with slight difference between summer and winter. The climate of Nigeria is usually characterized into 2 seasons – the Wet and Dry. The wet season (summer) is normally from April to October while the dry season (winter) is from November to March. The climate in Northern Nigeria varies from arid in the far North to tropical in the central. Climatic elements in the Northern part of Nigeria are summarised below in relation to: • Temperature and Relative Humidity; • Rainfall; and • Wind.

Temperature and Relative Humidity Generally, the area has an erratic climate characterized by wide and rapid changes in the temperatures and humidity. The arid regions like Sokoto and Borno States experience maximum degrees of temperature and Relative Humidity. The Relative Humidity sometimes approaches 90 per cent in this semi-arid area while daily mean maximum and minimum temperatures are 330C and 31.50C respectively and can rise to 40.00C in the far north. But the mean daily temperature can be as low as 100C in Places like Plateau and Taraba States and slightly higher in other areas during the months of December and January when the cold dry harmattan wind blows from Sahara Desert. Rainfall The year is characterized by well-marked dry and wet seasons. The raining season starts in May but early rains in April are not unusual. With the incidence of climate change, it is also not uncommon to find rainfall earlier than April in places around

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ESMF Nigeria Solar IPP Program (January 2019) the North Central region like FCT, Kogi, Benue and Nasarawa States. The bulk of the rainfall comes in June through September and recently October. Violent dust storms, followed by tornadoes and lightening, usually herald the onset of the rains in May and then retreat in September or early October. The total annual rainfall ranges from 635 to 890mm. Great variation occurs in the annual total rainfall and may result in severe and prolonged droughts, which cause crops failures and the death of livestock most especially in the far North like Sokoto, Yobe, Borno and Katsina states.

Wind Two Principal wind currents affects Nigeria. The South westerlies dominates the wet season and moves into the country from the Atlantic Ocean. The location of Northern Nigeria in relation to distance from the Atlantic Ocean is partly responsible for the delay till April/May the beginning of wet season in Northern Nigeria. North Easterlies from Sahara Desert dominates the dry season.

4.2.2 Air Emissions and Noise Generally, air quality is a function of activities taking place at different areas at different time. Industrial areas and traffic intersections are expected to face more pollution than residential areas. Ambient air quality of the Nova Scotia Power Development Ltd site in Jigawa state was reported to be was good based on assessment as all parameters measured were within the FMEnv permissible limits and guideline values recommended by World Health Organization (WHO). Ambient noise levels within the area ranged between 45.5 - 66.1 dB (A) with a mean value of 51.69 dB (A). These levels were also within FMENV permissible noise levels and WHO guideline value. Air Quality Assessment at Anjeed Kafanchan Solar Project in Kaduna State also indicates that the ambient air quality in the study area for both dry and wet seasons were good as all parameters measured were within the FMEnv and WHO acceptable limits. Ambient noise levels recorded within the sub-project area ranged between 39.2 – 65.8 dB (A) with a mean value of 48.4 dB (A). The concentrations of air quality parameters recorded around the Pan Africa Solar site in Katsina state were compared with the Nigerian Ambient Air Quality Standards (NAAQS) and the WHO Air Quality Guidelines. Results from the ambient air tests indicate that the sub-project area could be said to be good in terms of Total Suspended Particles (TSP) concentration during the wet season, and the low SO2 concentrations recorded across the sub-project site was indicative of an

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ESMF Nigeria Solar IPP Program (January 2019) unpolluted environment. The TSP values reported in the study area during the dry season survey ranged from 0.05 mg/m3 to 0.52 mg/m3. This maximum TSP value was found to be above the FMEnv prescribed limit for TSP in ambient air (0.25 mg/m3). This could be attributed to the intense dusty-dry harmattan winds that predominate in the study area during the dry season. The ambient noise level reported in the study area during the dry season ranged from ranged from 55.3 to 69.7 dBA, below the FMEnv limit of 90 dBA.

Table 4.1. FMEnv and WHO Ambient Air Quality Standards and Guidelines

FMENV WHO Parameter Time of Guideline Averaging Period/Time Limit Average Value Base 10 ppm CO 1 - hour 25 ppm 1 – hour 11.4 μg/m3 0.04 – 0.06 ppm NO2 1 – hour 200μg/m3 1 - hour 75.0 – 113 μg/m3 0.01 ppm 0.175 ppm SO2 1 - hour 10mins 26 μg/m3 500 μg/m3

CO2 - -

H2S 0.008 mg/m3 30 mins 7 μg/m3 30 mins 20 μg/m3 Annual PM 250 μg/m3 1 - hour 50 μg/m3 24 - hour Source: Guidelines and Standards for Environmental Pollution Control in Nigeria (FEPA 1991); Air Quality Guidelines (WHO, 2005)

Table 4.2. FMEnv and WHO Noise Level Standards and Guidelines.

FMENV WHO Parameter Averaging Limit Time of Average Guideline Value Period/Time Base Industrial 90dB(A) 8 hour 70 dB(A) 24 hours Area Residential - 55 dB(A) 16 hours Area Source: Guidelines and Standards for Environmental Pollution Control in Nigeria (FEPA 1991); Air Quality Guidelines (WHO, 2005)

4.2.3 Soil and Landscape The broad pattern of soil distribution in Northern Nigeria reflects the climatic condition and geological structure. The soil is light or moderately leached,

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ESMF Nigeria Solar IPP Program (January 2019) yellowish brown and sandy. The difference in colour relates to the extent of leaching the soil has undergone. The landscape of Northern Nigeria is characterised by highlands and lowlands. The eastern border with Republic of Cameroon is lined by an almost continuous range of mountains which rises to about 2,419m at Chappal Waddi, Taraba State. The highland in the Northern part of Nigeria is also prominent in Plateau state and Adamawa while the lowlands are predominantly within the Sokoto basin and Chad basin.

4.2.4 Geology The geology of Northern Nigeria, as extracted from Kogbe (1989), is made up of three main rock groups: mainly Precambrian basement crystalline metamorphic- igneous-volcanic rocks; Mesozoic to Tertiary sediments, granites and volcanics; and Quaternary alluvial deposits. Quaternary Alluvial Deposits Quaternary to Recent age alluvial deposits occur along the main river valleys. These deposits range from thin discontinuous sands to thick alluvial deposits up to 15 km wide and 15 to 30 m thick along the Niger and Benue rivers. The alluvial deposits include gravel, coarse and fine sand, silt and clay. Thin deposits of unconsolidated and mixed sands and gravels occur along the courses of ephemeral fadamas in northern Nigeria. Mesozoic to tertiary rocks Tertiary age olivine basalts, trachytes, rhyolites and tuffs, overlying or interbedded with coarse grained alluvial sediments, occur in the Jos Plateau and adjacent plateau areas. The surfaces of these volcanic lava flows have been weathered to form succession of laterite palaeosols on the Jos Plateau related to the uplift of the plateau. The Mesozoic and Tertiary strata, of the Sokoto part of the Iullemmeden Basin in NW Nigeria, comprise interbedded sandstones, clays, and limestones that dip to the north-west. These formations are capped by laterite. The sedimentary sequence includes the late Jurassic to early Cretaceous Illo and Gundumi Formations, the Maastrichtian Rima Group, the late Paleocene Sokoto Group and the Eocene-Miocene Gwandu Formation. These were deposited during a series of overlapping marine transgressions. Over 1250m of sediments occur in the down-warped Sokoto Basin, unconformably overlying Precambrian Basement rocks. Quaternary age alluvial deposits occur along the course of the River Sokoto.

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In the Chad Basin of NE Nigeria, Cretaceous sediments include the Albian- Cenomanian Bima Sandstone Formation continental poorly sorted and thickly bedded feldspathic sandstones and conglomerates to fluviatile and deltaic sediments. The early Turonian age Gongila Formation, up to 500m thick, includes marine limestones, sandstones and shales. The Senonian-Maastrichtian age Fika shale Formation, 100 to 500 m thick, consists of gypsiferous shales and limestone of marine and continental origin. The Maastrichtian age Gombe Sandstone Formation consists of estuarine and deltaic sediments, deposited upon marine shales with sandstone/shale intercalations. The lower deposits of siltstone, mudstone and ironstone are overlain by well-bedded sandstones and siltstones. The upper formation contains coals and cross-bedded sandstones. The Cretaceous ended with a period of uplift and erosion. The Palaeocene age Kerri-Kerri Formation consists of lacustrine or fluvio-lacustrine loosely cemented cross-bedded coarse- to fine-grained sandstones, with locally occurring claystones, siltstones, ironstones, lignites and conglomerates. The Kerri- Kerri Formation rests unconformably on the Gombe Sandstone Formation and thickens towards the basin center where it is overlain by Chad Formation. The Pleistocene age Chad Formation (up to 840m thick) consists of poorly sorted fine to coarse-grained sand, with sandy clay, clay and diatomite. Precambrian basement complex rocks Precambrian Basement Complex rocks underlie three areas of Nigeria: North- central area including the Jos Plateau; South-west area adjacent to Benin; and south-east area adjacent to Cameroon. The rocks of the North-central area are composed of gneisses, migmatites, granites, schists, phyllites and quartzites. The narrow, tightly folded north-south trending schist belts of northwestern Nigeria include igneous rocks, pelitic schists, phyllites and banded ironstones. The migmatite-gneiss complex of amphibolites, diorites, gabbros, marbles and pegmatites form a transition zone between the schist belt of NW Nigeria and the granites of the Jos Plateau to the east. There, extensive Precambrian age Older Granites crop out extensively. These have been intruded by Jurassic age Younger Granites that for characteristic ring complex structures.

4.2.5 Hydrogeology

Regional hydrogeology: Northwestern Nigeria In northwestern Nigeria, i.e. Sokoto Basin, up to 2000m of clastic sequences rest upon the basement. Sequences of semi-consolidated gravels, sands, clay, some limestone and ironstone are found. The analysis of pumping test data carried out

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ESMF Nigeria Solar IPP Program (January 2019) in the shallow aquifer indicates transmissivity in the range of 200–5000 m2/d and storage coefficients of 10−2 to 10−5 indicating semi-unconfined to confined conditions. The yield of boreholes up to 20 m depth is generally >2 l/s. The fluctuation of the water table in fadama (low lying) areas is about 2–3m throughout the year. The water table is lowest in June and highest in September at the end of the wet season. Precipitation in the area occurs within 3–5 months giving short-lived, but strong, runoff. Artesian aquifers occur at depth in the Gundumi Formation, the Rima Group, and the Gwandu Formation. A perched groundwater body occurs locally at shallow depth in the limestone of the Kalambaina Formation. This aquifer sustains numerous dug wells, springs and ponds. Also, from hydrological data, it has been estimated that the Rima River system between Sabon-Birni and Sokoto town loses an average of 4 ×108m3/a. A part of this water may be evaporated while the remaining infiltrates into the alluvium, and in turn recharges the aquifers.

Regional hydrogeology: Northeastern Nigeria

The Kerri-Kerri Formation crops out towards the western part of the northeastern Nigeria. The arenaceous beds in this formation are coarse grained and highly permeable, with little or no water at the top. This poor water occurrence is as a result of the highly permeable nature of the sands, which makes it possible for the infiltrating water to run through the aquifer very easily and rapidly to considerable depths, except where clays, shale and silts are encountered (Offodile, 1972). This explains the variable water-level in wells tapping this formation. It is also possible that infiltrating water moves laterally to recharge the Lower Zone Aquifer of the Chad Formation. This is a possibility in view of the fact that the Kerri-Kerri Formation gently dips towards the northeast, and dovetails with the formation being a lateral equivalent of the Lower Zone of the Chad Formation. Fairly good yields have been obtained from deep boreholes tapping this formation. Regional hydrogeology: the Middle Niger Basin and central Nigeria The area of the Middle Niger Basin extends northwestwards along the River Niger from the confluence with the River Benue River in Lokoja. Crystalline basement rocks adjoin the area on all sides except to the southeast where it has a common boundary with the Cretaceous sediments of the Lower Benue Basin. The Lower Niger Basin area is drained by minor rivers flowing SW-NE, and N-S from the Kabba and Jos Highlands, in the south and the north respectively. Additionally, intercalated clay and shale layers may reduce the productivity of wells, if vertical recharge plays a major role. The sandstones of the Lokoja Formation rest directly

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ESMF Nigeria Solar IPP Program (January 2019) on the granitic to quartzitic basement rocks. The whole sequence consists of pebbly, clayey grits and sandstones with a minimum thickness of 250 m. Due to their higher hydraulic conductivity values, groundwater exploration tend to focus on the Lokoja Formation. The areas underlain by Basement Complex rocks in west-central Nigeria include part of Niger, Kwara, Kaduna, Kogi, Benue and Plateau States. This is composed mainly of granitic and migmatitic gneisses and granites. There are also extensive areas of schists, phyllites occurring in Kaduna and Kwara states. Both the Older and Younger Granites of these areas are poor aquifers. However, over most of these areas occur thin, discontinuous mantle of weathered rocks or joint and fracture systems in the unweathered basement provide secondary reservoir. The decomposed mantle is sometimes too thin to harbor large quantities of water and is usually clayey to be highly permeable. The crystalline basement of Nigeria generally represents the deeper, fractured aquifer and is noted as a poor source of ground water. This is partly overlain by a shallow, porous aquifer within the lateritic soil cover. Streams and rivers rise quickly during and after precipitation events, thus indicating a rather low storage capacity of the soil and underlying rocks. From a borehole situated on the southern outskirts of Ilorin on a major fracture in migmatitic granite, Offodile (1992) reports a yield of about 7.2 m3/h (2 l/s).Yields between 1–2 l/s are considered good, and yields are more commonly below 1 l/s

4.3 Biological Environment There are nine distinct ecological zones in Nigeria which can be streamlined into five, namely (i) Sahel/Sudan Savanna, (ii) Guinea Savanna, (iii) Derived Savanna, (iv) Lowland rainforest/montane forest and (v) Freshwater swamp forest/mangrove forest and coastal vegetation (Figure 4.1). Northern Nigeria is covered by Sahel, Sudan and Guinea savanna. The region is characterized by relatively long dry season lasting 5-7months resulting in less woody species compared to the Forest belt or even the Guinea Savannah. Thus the regional vegetation is a mixture of grasses and low growing shrubs and trees. The region is currently experiencing desert encroachment which is greatly exacerbated by human activities such as over cultivation, overgrazing, etc. The Sudan Savannah vegetation belt is found in the north-west, stretching from the Sokoto plains in the west, through the northern sections of the central highland. It spans almost the entire northern states bordering the Niger Republic and covers over one quarter of Nigeria's total area.

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Figure 4.1. Map showing Different Vegetation Belt of Nigeria

4.3.1 Floral Characteristics The terrestrial plant life in the Northern Nigeria is typically a mixture of herbaceous flora especially of members of the grass family- the Poacea and low growing woody species, with the herbaceous species being more abundant. Common grasses are Satera pallid-fusca, Chloris gayana, Digitaria exiles and Eragrostis atrovirens. Common woody species are Azadirachta indica, Acacia Senegal, Vitellaria paradoxa-all trees of economic importance. Some of the common flora species in Northern Nigeria (some of which are expected in the sub-project sites) are listed in Table 4.3 below:

Table 4.3. Flora characteristics in Northern Nigeria

SPECIES S/N FAMILY COMMON NAME TYPE (Scientific Name) 1 Asteraceae Centaureasenegalensis Centaurea (Kodebabi) Herb 2 Rubiaceae Borreriastachydea Borreria Herb 3 Poaceae Digitaria exiles White fonia/fonia millet Herb (Grass) 4 Liliaceae Chlorophytumlaxum Spider /airplane plant Herb

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SPECIES S/N FAMILY COMMON NAME TYPE (Scientific Name) 5 Fabaceae Alysicarpus glumaceus Moneywort Herb 6 Poaceae Setaria pallid-fusca Cattail grass Herb (grass) 7 Fabaceae Zorniaglochidiata Zornia Herb 8 Poaceae Chloris gayana Rhodes grass Herb (grass) 9 Fabaceae Acacia albida Acacia (Gao in hausa) Tree 10 Poacea Cynodondactylon Bermuda grass Herb (grass) 11 Rubiaceae Borreriaverticellata Borreria Shrub 12 Asteraceae Vernoniabluemoides Vernonia Herb 13 Poaceae Digitaria debilis Digitaria Herb 14 Rubiaceae Mitracarpusscaber Mitracarpus Herb Dactyloctenium Egyptian crowfoot 15 Poaceae Herb (grass) aegyptium grass 16 Bombaceaceae Adansonia digitata Boabab Tree Commiphora 17 Burseraceae Commiphora Shrubs pedunculata 18 Commelinaceae Aervalanata Mountain knotgrass Herb 19 Lythraceae Lawsonia innermis Hina or Hina tree Shrub 20 Fabaceae Acacia sieberiana Gum Arabic Tree 21 Euphorbiaceae Croton lobatus Gaasayaa (Hausa) Herb 22 Malvaceae Sidacordifolia Country mallow or sida Shrub 23 Malvaceae Sidalinifolia Fanpetals or sida Shrub 24 Poaceae Urelytrum gigantium Quinine grass Herb (grass) 25 Balanitaceae Balanites aegyptiaca Desert date Tree 26 Ebanaceae Diospyrus mespiliformis African Ebony Tree 27 Araceae Stylochiton hypogeaus Stylochiton Herb 28 Rubiaceae Feretia apodanthera Kuru-kuru (Hausa) Shrub 29 Cyperaceae Kylingapumila Low spikesedge Herb 30 Cucurbitaceae Ptenolepis madrasa Herb (vine) 31 Poaceae Setaria barbata Indian bristlegrass Herb (grass) 32 Cyperaceae Cyprus dilates Herb(sedge) 33 Poaceae Eragrostisatrovirena Weeping lovegrass Herb (grass) 34 Poaceae Erogarastisgangetica Weeping lovegrass Herb (grass) 35 Poaceae Aristidamutabilis Aristida Herb (grass) 36 Poaceae Tripogonminimus Tripogon Herb (grass) 37 Asteraceae Biden bipinnatum Blackjack Herb Senna obtusifolia Chinese senna, 38 Fabaceae Shrub American siclepod Climbing asparagus 39 Asparagaceae Asparagus africanus Shrub fern 40 Poaceae Andropogogayanus Rhodesian blue grass Herb (grass) 41 Poaceae Imperatacylinderica Cogon grass Herb (grass) 42 Acanthaceae Hypoethes cancellata Senegal basari Herb 43 Asclepiadaceae Leptadenia hastate Senegal balanta Shrub 44 Convolvulaceae Ipomoea asarifolia Morning glory Herb (vine)

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SPECIES S/N FAMILY COMMON NAME TYPE (Scientific Name) 45 Fabaceae Senna sieberina Senna Tree 46 Euphorbiaceae Phyllanthus amarus Stone breaker Herb 47 Solanaceae Physalis peruviana Golden berry Herb 48 Moraceae Ficus ingens Fig tree Tree 49 Fabaceae Senna sinqueana Senna Tree 50 Poaceae Eleusine indica Wiregrass Herb(grass) 51 Poaceae Sporobolus pyramidalis Giant rat’s tailgrass Herb (grass) 52 Fabaceae:P Desmodium tortosum Desmodium Herb 53 Fabaceae Eriosema psoraloides Canary pea Herb Paperback 54 Fabaceae Acacia seiberiana Tree thorn/acacia 55 Fabaceae Indigofera nummalarifolia Indigofera Herb 56 Euphorbiaceae Phyllanthus niruri Stonebreaker Herb 57 Malvaceae Waltheria indica Sleeping morning Herb 58 Fabaceae Aeschynomene uniflora Budda pea Herb 59 Euphorbiaceae Chrozophorasenegalensis Baurenkiyeshi(Hausa) Herb 60 Fabaceae Indigofera arecta Indigofera Shrub 61 Fabaceae Crotolariaretusa Brown hemp Shrub 62 Fabaceae:P Sesbaniasesban Egyptian pea Shrub 63 Asteraceae Sclerocarpus africanus African Bonebract Herb 64 Asteraceae Blumeaaurita Awka (Ibo) Herb 65 Asteraceae Conyza aegyptiaca Horseweed Herb 66 Asteraceae Ageratum conyzoides Chickweed Herb 67 Fabaceae Indigofera numlarfiolia Indigofera Herb 68 Portulaceae Portulaca oleraceae Pigweed or Red root Herb 69 Asteraceae Emilia pratermissa Mende (Seirraleone) Herb 70 Asteraceae Bidens pilosa Blackjack Herb 71 Asteraceae Cosmos sulphureus Yellow cosmos Shrub 72 Solanaceae Scopariadulcis Goatweed Herb 73 Commmeliaceae Commelina africana Spiderwort Herb 74 Companulaceae Cephalostigma thonnigii - Herb 75 Fabaceae:P Stylosanthes arecta Penicil flower Herb 76 Malvaceae Urena lobota Congo Jute Shrub 77 Euphorbiaceae Bridellia ferruginea Burburumhi (Fulani) Shrub 78 Asteraceae Porpyrostema angostifolius - Shrub 79 Fabaceae Crotolaria lachnosema Rattle pod Herb 80 Poaceae Sacciolepis africanus Cupscale grass Herb (grass) 81 Convulvolaceae Ipomoea aquatica Water spinach Herb 82 Fabaceae Piliostigma thonningii Monkey bread Shrub 83 Malvaceae Hibiscus asper Hibiscus Herb 84 Cyperaceae Mariscus alternifolius - Herb(Sedge) 85 Asteraceae Vernonia ambigua Ironweed Herb 86 Xyridaceae Xyris straminea Yellow eyed grass Herb

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SPECIES S/N FAMILY COMMON NAME TYPE (Scientific Name) Acanthospermum 87 Asteraceae Goat’s head Herb hispidium 88 Lamiaceae Leucas martinensis Wild tea bush Shrub 89 Malvaceae Hibiscus suratensis Hibiscus Herb 90 Verbanaceae Clerodendron capitatum Diola (Senegal) Shrub 91 Amaranthaceae Achyranthes aspera Devil’s horsewhip Herb 92 Tiliaceae Melochia corchorifolia Chocolate weed Shrub 93 Fabaceae Senna mimesoides Senna Herb 94 Fabaceae Tamarindus indica Tamarind Tree 95 Fabaceae Indigofera secondiflora Indigofera Herb 96 Arecaceae Phoenix dactylifera Date palm Tree 97 Apocynaceae Plumeriarubra Temple tree Tree 98 Asteraceae Eclipta alba False daisy Herb 99 Caparaceae Caparis tomentosa Woolly Caper bush Shrub 100 Rubiaceae Oldenlandia herbacea Chay root Herb 101 Liliaceae Gloriosa superb Flamelily Herb 102 Combretaceae Guiera senegalensis Moshi medicine Shrub 103 Fabaceae Crotolaria falcate Smooth rattlebox Shrub 104 Fabaceae Indigoferalinearifolia Indigofera Shrub 105 Anacardaceae Sclerocarybirrea Marula Tree 106 Scruphulariaceae Striga asiatica Witchweed Herb 107 Poaceae Axonophus smithii Wheat grass Herb (grass) 108 Rubiaceae Borreria octodon Borreria Herb 109 Fabaceae Tephrosia linearifolia Felatsifotra Herb 110 Poaceae Eragorastic tenella Weeping lovegrass Herb (grass) 111 Meliaceae Azadirachta indica Neem Tree Climbing day flower or 112 Commmeliaceae Commelina difusa Herb spreading day flower 113 Poaceae Cenchros biflorus Indian sandbur Herb (grass) 114 Fabaceae Crotalaria senegalensis - Herb 115 Sterculiaceae Sterculia setigera Karaya gum tree Tree 116 Fabaceae Zornia latifolia Maconhabrava Herb 117 Amaranthaceae Gomphrena celosiodes Gomphrena weed Herb 118 Fabaceae Senna hirsute Senna Herb Sodom’s apple 119 Apocynaceae Calotropisprocera Shrub milkweed 120 Poaceae Pennisetum pedicellata Desho or desho grass Herb (grass) Kauk-kweza 121 Capparidaceae Capparis polymorpha Shrub (Myanmar) 122 Malvacea Hibiscus linearifolia Hibiscus Herb 123 Fabaceae Parkia biglobosa Locust bean tree Tree 124 Poaceae Rottoboellia exaltata Itchgrass Herb (grass) 125 Sapotacea Vitellariaparadoxa Shea butter tree Tree

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4.3.2 Fauna Characteristics There are about 22,000 vertebrates and invertebrates species, including about 20,000 insects, 1,000 birds, 1,000 fishes, 123 reptiles and 247 mammals, With 23 species in 13 genera, Nigeria ranks eighth in the world, in terms of primate diversity, About 1,489 species of microorganisms have also been identified. One hundred and forty-six species on the IUCN list of threatened species are found in Nigeria out of which 18 falls under the category ‘endangered’ and 15 under the category ‘critically endangered’. Apart from Cross River National Park, there is no place in Nigeria that primary forests of five layer forest strata could be observed any longer. The implication of this is that animals that are dependent on these different layers had been greatly reduced. Birds such as eagles, kites, parrots and ravens that construct their nests at the uppermost layer can no more use the layer which means that in no distance time these birds will go into extinction. Large mammals such as elephant, chimpanzee, gorilla etc., require a wider home range but as a result of habitat fragmentation their home range has been restricted thereby exposing them to danger of extinction. Typical examples of faunal species which may be encountered at the Nigerian IPP sub-project sites are presented in Table 4.4 (invertebrates) and Table 4.5 (vertebrates).

Table 4.4. Classification of Fauna Species (Invertebrate)

S/N Phylum Class FAMILY SCIENTIFIC NAME COMMON NAME 1 Arthropoda Insecta Drosophilidae Drosophila sp. Fruit flies 2 Arthropoda Insecta Aerididae Ornithocris Cricket magnifica 3 Arthropoda Insecta Gryllidae Gryllopsis nerabillis Ground cricket 4 Arthropoda Insecta Pyrgomorphidae Gastromagus Brown grasshopper africana 5 Arthropoda Insecta Pyrgomorphidae Zonocerus Variegated variegatus grasshopper 6 Arthropoda Insecta Termitoidae Cryptotermes sp. Drywood termite 7 Arthropoda Insecta Libellulidae Grachythemis Groundlings dragon leuconeura fly 8 Arthropoda Insecta Lygaeidae Leptocoris Soapberry bug graseiveripis 9 Arthropoda Insecta Lygaeidae Oncopeltus Milkweed bug famelucus

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S/N Phylum Class FAMILY SCIENTIFIC NAME COMMON NAME 10 Arthropoda Insecta Coreidae Cletus notatus Plainfin midshipman 11 Arthropoda Insecta Trogidae Dermestes sp. Hide beetle 12 Arthropoda Insecta Scarabaeidae Anachalcos sp. Dung beetle 13 Arthropoda Insecta Erebidae Diacrisia maculosa Moths 14 Arthropoda Insecta Noctuidae Agrotis spinifera African moth 15 Arthropoda Insecta Charaxidae Charaxes leadice Charaxes butterflies 16 Arthropoda Insecta Nymphalidae Charaxes varanes Brushfoots, butterflies etc 17 Arthropoda Insecta Nymphalidae Amauris niavius Common friar 18 Arthropoda Insecta Pieridae Acraea eponina Orange acraea butterfly 19 Arthropoda Insecta Pieridae Catopsilia florella White butterfly 20 Mollusca Gastropoda Achatinidae Limicolaria Garden snail flammea 21 Arthropoda Insecta Culicidae Aedes sp. Aedes mosquito 22 Arthropoda Arachnida Trombidiidae Trombidium sp. Red velvet soil mite 23 Arthropoda Arachnida Scorpionidae Pandinus sp. Black scorpion 24 Arthropoda Arachnida Buthidae Tityus sp. Reddish-brown scorpion 25 Arthropoda Insecta Gerridae Aquarius paludum Pond skater, waterbugs etc 26 Arthropoda Insecta Nepidae Nepa cinerea Water scorpion Source: (ESIA NSPDL, 2015)

Table 4.5. Classification of Fauna Species (Vertebrates)

S/N PHYLUM CLASS FAMILY Scientific name COMMON NAME

AMPHIBIANS 1 Chordata Amphibian Rhacopheridae Hyperolius sp. Frogs 2 Chordata Amphibian Hyperoliidae Afrixalus sp. Morere’s banana frog 3 Chordata Amphibian Bufonidae Bufo regularis Toad 4 Chordata Amphibian Ranidae Dicroglossus African Bullfrog occipitalis 5 Chordata Amphibian Pipidae Xenopus sp. Clawed frog REPTILES 6 Chordata Reptila Colubridae Natrix sp. Brown water snake 7 Chordata Reptila Elapidae Naja melanoleuca Black cobra 8 Chordata Reptila Elapidae Dendraspis sp. Green mamba 9 Chordata Reptila Viperidae Bitis arientans Puff adder 10 Chordata Reptila Varanidae Varanus niloticus Nile monitor lizard

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S/N PHYLUM CLASS FAMILY Scientific name COMMON NAME

11 Chordata Reptila Varanidae V. exanthamaticus Borsch monitor lizard 12 Chordata Reptila Agamidae Agama sakaranica Senegal agama 13 Chordata Reptila Agamidae Agama agama Rainbow lizard 14 Chordata Reptila Scincidae Mabuya sp. Mabuya skink 15 Chordata Reptila Scincidae Scincopus fasciatus Banded skink 16 Chordata Reptila Chamaeleonidae Chamaeleo basiliscus Chameleon 17 Chordata Reptila Testudinidae Trionix sp. Soft-shelled turtle 20 Chordata Reptila Centrochelys sp. African spur toitoise BIRDS (AVES) 21 Chordata Aves Musophagidae Crinifer piscator Grey Plantain eater 22 Chordata Aves Ardeidae Ardea sp. Heron 23 Chordata Aves Laniidae Corvinella sp. Shrikes 24 Chordata Aves Laniidae(shrikes) Eurocephalus sp. 25 Chordata Aves Laniidae(shrikes) Lanius sp. 26 Chordata Aves Phasianidae Francolinus Bush fowl bicalcaratus 27 Chordata Aves Phasianidae Ptilopachus petrosus Stone partridge 28 Chordata Aves Falconidae Milvus migrans Black Kite 29 Chordata Aves Accipitridae Kaupifalco Lizard buzzard monogrammicus 30 Chordata Aves Accipitridae Elanus caerulus Black- Shouldered Kite 31 Chordata Aves Ardeidae Cattle Egret Bulbul Cow crane, cow cusibis bird 32 Chordata Aves Columbidae Columba guinea Speckled Pigeon 33 Chordata Aves Columbidae Streptopelia Red-eyed Dove semitorquata 34 Chordata Aves Columbidae Streptopelia Mourning Dove decipiens 35 Chordata Aves Columbidae Streptopelia Laughing Dove senegalensis 36 Chordata Aves Coraciidae Coracias abyssinicus Abyssinian Roller 37 Chordata Aves Apodidae Apus apus Common Swift 38 Chordata Aves Ploceidae Ploceus nigricollis Black-necked Weaver 39 Chordata Aves Ploceidae Ploceus cuculatus Village Weaver 40 Chordata Aves Ploceidae Euplectes sp. Northern Red Bishop 41 Chordata Aves Strigidae Ptilopsis leucotis White-faced owl 42 Chordata Aves Cuculidae Centropus Senegal Coucal senegalensis

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S/N PHYLUM CLASS FAMILY Scientific name COMMON NAME

43 Chordata Aves Psittacidae Poicephalus Senegal parrot senegalus MAMMALS 44 Chordata Mammalia Sciuridae Xerus erythropus Striped ground squirrel 45 Chordata Mammalia Muridae Mus sp. Rats 46 Chordata Mammalia Nesomyidae Cricetomys Gambian gambianus pouched rat 47 Chordata Mammalia Eranaceidae Atelerix sp. Hedgehog 48 Chordata Mammalia Bovidae Modoqua sp. Dik-dik Source: (ESIA NSPDL, 2015)

4.3.3 Endangered and Critically endangered Species in Nigeria The most endangered or critically endangered floral and faunal species across Nigeria are presented in Table 4.6.

Table 4.6. Critically Endangered and Endangered Species across Nigeria

Flora or Critically Endangered and typical location Endangered and typical location Fauna Abura (Hallea ledermannii) Niger delta Iroko (militia excelsia) some parts of southwest, and Niger delta All timber species can be classified Obeche (Triplochiton scleroxylon) some parts of east, endangered owing to rate of Flora south south and west deforestation, urbanisation and Mahogany (Swietenia spp) skirmishes in parts of cross population explosion as against river and Ondo afforestation. Baobab (Adansonia digitata) parts of north and middle belt

African elephants (Loxodonta africans) parts of cross Most primates, rodents, reptilians river, Osun-Ondo range and avians as listed on that list are Chimpanzee(Pan troglodytes) cross river endangered but enjoys different Guenon (Cercopithecus erythrogaster) okomu Edo Fauna levels of listings in the CITES Gorilla (Gorilla gorilla) cross river Appendices Drills (Mandrillus leucophaeus) cross river

Pangolin (Manis species) parts of south south and west

It is expected that as part of the ESDD process for the sub-projects selected for the Program, a detailed assessment will be undertaken to identify specific flora and faunal species which are endangered or critically endangered.

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4.3.4 Protected Areas Across Nigeria, there are at least 23,608.34km2 (or 2,360,800hectares) of land that are designated by national authorities as scientific reserves with limited public access, national parks, natural monuments, nature reserves or wildlife sanctuaries, protected landscapes, and areas managed mainly for sustainable use. Project areas across Nigeria, some of which may be in the wider area of influence of some of the sub-project locations is presented in Table 4.7 below.

Table 4.7. Protected Areas in Northern Nigeria

Name State Area (sq/km) Sambisa Borno 517 Pai River Plateau 2714 Wase Game Sanctuary Plateau 1865 Wase Rock Plateau 0.94 Pandam Wildlife Park Plateau 362.4 Falgore (Kogin Kano) Kano 920 Kwaiambana Sokoto 2613 Alawa Niger 296 Dagida Niger 294 Baturiya Kano 43 Yankari Bauchi 2240 Kainji Lake National Kwara/Niger 5341 Gashaka Gumti National Park Adamawa/Taraba 6,402

4.3.5 Key Ecological Problems Commencement and operations of developmental projects often result in the direct removal or disturbance of plants, animal and habitat communities. Ecological problems in Nigeria most especially Northern Nigeria which has led to scarcity, threat and extinction or migration of plant and animals varies from location to location. Generally, in Northern Nigeria, deforestation, overgrazing, drought and desertification as well as yearly flooding are major ecological problems. Lack of succulent grasses for animals to feed in the North had and has been forcing pastoralists to migrate southwards for grazing. This also often results in farmer grazer conflicts. Special attention will need to be given to these issues when designing and implementing the E&S studies of the sub-projects.

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4.4 Socio-Economic Environment 4.4.1 Demographics Nigeria is one of the most densely populated country in Africa with approximately 196 million people in 923,763km2, Nigeria is also the country with the largest population in Africa with the seventh largest population in the world. Approximately 50% of Nigerians are urban dwellers, with the rate of urbanization being estimated at 4.3%. Nigeria is home to over 250 ethnic groups, with over 500 languages, and the variety of customs, and traditions among them gives the country great cultural diversity. The three largest ethnic groups are the Hausa/Fulani, Yoruba and Igbo. The Efik, Ibibio, Annang, and Ijaw constitute other Southeastern populations. The Urhobo-Isoko, Edo and Itsekiri constitute Nigerian's Midwest. 4.4.2 Population Nigeria's population has been increasing rapidly for at least the last 5 decades, due to very high birth rates, with the country quadrupling its population during this time (Table 4.8). This represents an exponential growth rate. Growth rates were most rapid in the 1980s, after child mortality had dropped rapidly, and has slowed slightly since then as the birth rate has declined slightly. According to the 2017 revision of the World Population Prospects the total population was 185,989,640 in 2016, compared to only 30,403,305 in 1952. The proportion of children under the age of 15 in 2010 was 44.0%, 53.2% was between 15 and 65 years of age, while 2.7% was 65 years or older. There is a large population momentum, with 3.2 percent growth rate leading to the projected population.

Table 4.8. Historical population growth rates in Nigeria

Year Population ±% p.a. 1952 30,403,305 - 1963 54,959,426 +5.53% 1991 88,992,220 +1.74% 2006 140,431,790 +3.09% 2011 162,471,000 +2.96% 2013 174,507,539 +3.64% 2015 182,202,000 +2.18% 2017 191,836,000 +2.61%

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4.4.3 Ethnic Groups and Religion Nigeria has more than 250 ethnic groups, the larger of which are the Hausa and Fulani who are predominantly in the Northern part of Nigeria and represent approximately 29% of the population, the Yoruba, predominantly in the South (South West) and represent approximately 21% of the population and the Igbo, predominately in the East represent about 18% of the population. The other large groups are the Ijaw with about 10% the Kanuri with about 4%, the Ibibio with about 3.5% and the TIV with about 2.5%. The Middle Belt region of Nigeria shows the greatest degree of ethnic diversity, particularly in Adamawa, Taraba and Plateau States. English is the official language while a clear majority of the population conducts commercial activities in their ethnic language and “pidgin” English. The literacy level of the population is 51.7% (male: 67.3%, female 47.3%). Predominantly the people are Muslims (50%) and Christians (40%) with few traditional religions (10%) (ESMF L-PRES, 2018)

There are no communities or ethnic minorities considered as “underserved” in Nigeria. However minority tribes in Nigeria are mostly from Southern part of the country with tribes like Itsekiri, ilaje, Ikale, Boki, Andoni, Ejagham taking the lead while the notable ones in the North includes Kanuri, Bura, Chibok, Shua-Arab, Karai, Bade, Kagoro, Bajju, Jaba, Berom, Angas and so on. Closer to what can be referred to as minority ethnic group in Nigeria is the Fulani tribe who are found in smaller groups across the country mainly because of their nomadic nature but without any close attachments to ancestral territories and natural resources in areas where they are found. They move round and settle for short period of times. Their cattle grazing activities covers vast area within Nigeria from North to South. With their widespread coverage, they are mostly regarded as settlers in many places within Northern Nigeria and this have created a lot of unrests. Such unrests have been witnessed in Benue State, Plateau State, Kaduna State and Nasarawa State. Their economic status revolves mainly around their cattle business and are usually prominent around cattle markets in the country.

4.4.4 Public Health The inadequate programs designed to address the numerous health problems in Nigeria have led to the little improvement in our health status. Besides the continued neglect of the importance of addressing public health issues would make matters worse for poor Nigerians most of who are at the receiving end. The major public health challenges Nigeria faces are infectious diseases, control of vector some diseases, maternal mortality, infant mortality, poor sanitation and

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ESMF Nigeria Solar IPP Program (January 2019) hygiene, disease surveillance, non-communicable diseases and road traffic injuries, etc. A recent study into maternal and child care in Northern Nigeria concluded that poor public health is further compounded by the fact that access to health care in many parts of the North is a challenge. The lack of adequate health services in Nigeria is chronic, coupled with healthcare facilities that lack basic essential medicines. Additionally, the shortage of skilled health workers in the North and the inaccessibility of healthcare facilities due to distance and poor road networks have consequences, particularly for women and children. The low availability, accessibility, and affordability, of health services are not the only factors responsible for the poor health status of women and children in northern Nigeria. Many normative practices persist in the North that do not benefit the general well-being of women. For instance, as well as being dependent for financial assistance, many women will require the permission of their husbands, before they may be allowed to visit health clinics and facilities. The prevalence of home deliveries and female genital mutilation, and low levels of education and awareness among women about their own health all contribute to the pervasiveness of poor health outcomes among women in northern Nigeria. High maternal mortality and low education levels further serve to trap women in low social and economic conditions, and limit their already restricted access to quality healthcare services. As a result, the North-East region of Nigeria has the highest maternal mortality rates in the country. Out of 100,000 live births, 1,549 mothers die in the North-East compared to 165 in the South-West.

4.4.5 Epidemic Diseases and HIV/AIDS Epidemic diseases within Northern Nigeria includes Yellow Fever, Monkey Pox, Lassa Fever, Hepatitis, Polio, Cholera, measles, guinea worm and cerebro-spinal meningitis. These diseases have become endemic in parts of central and northern Nigeria, taking turns between the country's two main seasons to ravage large populations of people. During the rainy season, cholera is usually common across several states in the north. According to IRIN report of 1999, states like Kano, Borno and Katsina in Nigeria's northern fringe were badly affected while small outbreaks were also reported in the North-Central states of Kaduna and Bauchi.

In Kano, Medecins Sans Frontieres has treated over 700 cases, with 60 people dead in its treatment centres. In northern Nigeria the main cause of cholera is shortage of drinking water, which forces a lot of people to resort to unwholesome sources such as ponds and streams with faecal contamination. Equally water-

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ESMF Nigeria Solar IPP Program (January 2019) borne is guinea worm which, while not fatal like cholera, has a debilitating impact on its victims.

Gombe State is one of those endemic areas where it will take extra efforts to curb the menace. According to the IRIN report, 640 cases of guinea worm have been reported in Gombe state. Health officials in Katsina State said over 5,000 people had been infected by the worm, mainly in Matazu, Dutsin Ma and Rimi local council areas, where the only source of domestic water were infected ponds and streams. As soon as the rainy season is over in October measles and meningitis sets in with dry season. The spread of which is usually accelerated by the dry, North-Southerly harmattan winds from the Sahara Desert. Meningitis killed relatively fewer people, mainly due to vaccination programmes implemented by local health authorities and international aid agencies, measles have always took a heavier toll.

Apart from these diseases, HIV is another issue but it has been relatively reduced because of the great efforts of the government through the National Action Committee on Aids which covers all the states of the Federation. That is not to say that HIV infections are no longer found, they are still much found in Benue, Plateau and Kaduna states.

4.4.6 Land Use and Tenure Land use varies in Nigeria based on location and the need of the community. Predominant land use in rural areas revolve around agriculture while urban areas have more of residential, industrial and social uses. In terms of tenure, the Land Use Decree of 1978 vests ownership of all land to the state through the office of the governor. Land is to be held in trust and administered for the use and common benefit of all Nigerians according to the provisions of the Act. By this legal instrument, the state replaced the traditional institutions of traditional rulership and chieftaincy in their roles as keepers of communal land. Control and management of land in urban areas is the responsibility of the state governor, while all other land (rural, public, etc.) is the responsibility of the Local Government of the area. The governor is empowered to designate certain areas as urban land and to grant statutory rights of occupancy of fixed periods and rights of access to any person, subject to rental arrangements fixed by and payable to the state. The local government can grant a customary right of occupancy to land in the local government area (LGA) to any person or organization for agriculture, grazing, residential or other purposes. According to the existing national legislation in Nigeria (LUA 1978), the compulsory land acquisition needs to follow the following steps:

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• The investor requests land from the State Governor, who in turn instructs the Commissioner of Land to obtain the land through compulsory land acquisition. • The Commissioner of Land instructs the Surveyor General to demarcate the land and conduct a land survey i.e. identifies the owner and establishes the compensation entitled under the national legislation. • After the Commissioner of Land has reviewed and approved the survey results, the Director of Land issues a public announcement to the concerned communities that invites all right holders to identify themselves to the authorities. • After the end of the public disclosure period a final survey is conducted to confirm validate the findings of the land survey and/or register any changes. • After the survey results have been either accepted by the right holders or confirmed by the Director of Lands, compensation is paid and the land becomes the possession of the State government, which then in turn can issue a certificate of occupancy to the investor.

4.4.7 Land Competition and Conflict between Farmers and Pastoralists In Northern Nigeria, there is largely not much peaceful co-existence between farmers and pastoralist because of resource scarcity s they both make their livings from the same geographical conditions. Farmers-pastoralist conflicts have been associated with the conflict of land resources. Nomadic pastoralists have no land use rights and depend largely on the hospitality/generosity of their hosts. They may have access to routes, corridors/passageways for wildlife and domestic animals, indicating a desire by government to provide grazing land for both nomadic and settled pastoralists. However, existing grazing reserves are only rudimentary lacking any facilities. Thus, generally, nomads move to open pasture to raise stock as well as avoid contact with agricultural communities. The cattle movements avoid areas of tsetse fly infestation and other diseases and follow the location of farming communities for crops residues and markets for their products, thus trampling into the farm land. The increasing human population, irrigation and expansion of town and villages accelerated the encroachment of land cultivation and urbanization into grazing area and stock routes, leading to competition for resources and create farmer/herder clashes which have resulted in heavy losses in lives and properties. The local farmers claim that the Fulani’s cattle frequently destroy their crops, resulting in conflict which is sometimes violent.

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4.4.8 Cultural Heritage Nigerian is a country endowed with a lot of cultural heritages sourced from its multicultural communities. Globally the importance of heritages to countries and even in developing nations like Nigeria cannot be over-emphasized. This is due to its economic, historical, tourist, aesthetic, educational and research significance. Tangible cultural heritages include man’s physical ingenious products which can be touched and seen such as architecture/buildings, defensive walls and ditches, crafts, tools, ivory, cowries, paintings, textiles, pestles, mortars, iron furnaces, knives, food, wooden objects, tombs & grave goods, temples, dresses, pottery & potsherd pavements, monuments, books, works of art among other artifacts. Some Cultural Heritages of Nigeria includes:

A. Northern Nigeria 1. Annual Argungu festivals in Kebbi state. 2. Annual Sallah Durbar in Katsina State 3. Gidan Hausa in Kano state 4. Farribachama Annual festival of Adamawa state

B. Southern Nigeria 1. Eyo masquerade of Lagos state 2. The Bakor Yam festival in Cross River state and others 3. Osun – Oshogbo festival in Osun state 4. Imo Awka masquerade ceremony in Awka, Anambra state.

Other Nigerian cultural heritages were the blacksmithing industry, brass-casting, bronze works and metal-working industries practiced across Nigeria, terracotta; wood carvers constructed beautiful stools and doors, engravings on walls and rocks etc.

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ESMF Nigeria Solar IPP Program (January 2019) 5 GENDER CONSIDERATIONS AND VULNERABLE GROUPS

5.1 Introduction Women and girls around the world must have equal rights and opportunity and be able to live free of violence and discrimination. Women’s equality and empowerment is one of the 17 Sustainable Development Goals which is also integral to all dimensions of inclusive and sustainable development. In short, all the SDGs depend on the achievement of Goal 5: Achieve gender equality and empower all women and girls. It is important to also note that Goal 7, Ensure access to affordable, reliable, sustainable and modern energy for all, is a dimension which this solar IPP program will embed within the gender domain. The UN Progress report12 notes that, “globally, 85.3 per cent of the population had access to electricity in 2014, an increase of only 0.3 percentage points since 2012. That means that 1.06 billion people, predominantly rural dwellers, still function without electricity. Half of those people live in sub-Saharan Africa”13 The United Nations’ gender equality goal requires urgent action to eliminate the many root causes of discrimination that still curtail women’s rights in private and public spheres by 2030. This is in the area of discriminatory laws, eliminating gender-based violence, equal distribution of economic resources and sexual and reproductive rights. In the 2017 Progress Report, the UN noted that “gender inequality persists worldwide, depriving women and girls of their basic rights and opportunities. Achieving gender equality and the empowerment of women and girls will require more vigorous efforts, including legal frameworks, to counter deeply rooted gender-based discrimination that often results from patriarchal attitudes and related social norms”14 Finally, the UN reported that across countries, it is those women and girls who experience multiple and intersecting forms of discrimination who are often the furthest behind. To identify such inequalities among women and girls within countries, the report undertakes analysis across a range of development dimensions for four countries, finding that those who are deprived in one dimension are likely to experience deprivations in other dimensions as well. For the case of Nigeria, the report finds:

12 UN Progress report of 2017 13 UN Economic and Social Council (2017). Progress towards the Sustainable Development Goals: Report of the Secretary- General (E/2017/66). 14 UN Economic and Social Council (2017). Progress towards the Sustainable Development Goals: Report of the Secretary- General (E/2017/66).

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• Education. Wealth is a driving force behind educational attainment: 13% of women and girls from the richest households report completing six or less years of education, while in the poorest households, 96.5% are education- poor. • Child marriage. A low-income, rural woman of Hausa ethnicity is eight times as likely to be married before the age of 18 as a high-income, urban woman of Yoruba ethnicity. • Violence against women and girls. 23% of women have been victims of physical or sexual violence by a previous husband and 17.3% by another relative. Igbo women and girls are the likeliest to report being victims of violence at the hands of a relative: 25.2%. • Clustered deprivations. 15% of all women aged 18–49 (or 5.2 million women) are simultaneously deprived in four SDG-related dimensions. These women were not only married before the age of 18 and education poor, but they also reported no agency in healthcare decisions and claimed to be unemployed at the time of the survey. The next section will provide further country and state local data demonstrating the urgency in this social dimension.

5.2 Gender Issues Nigeria is now ranked 125 out of 145 on the 2015 Gender Gap Index countries with a score of 0.638. On the AfDB Gender Equality Index 2015, Nigeria is ranked 23rd out of 52 countries. The AfDB Index reflects women’s status in three dimensions of equality: economic opportunity, social development and law and institutions. The ranking is based on a score of 0-100, with 100 representing perfect gender equality. Nigeria’s overall score is 54.7%, it ranks 18th in economic opportunities, and an unsatisfactory 32nd in human and social development and 30th in laws and institutions. Generally, women, compared to men, lack access to employment opportunities because of low investment in their human capital, especially their low level of education and lack of skills appropriate for formal labour employment. Women therefore dominate small-scale commerce in food, textiles, household goods and consumable. The few women employed in the formal labour market work within an environment which is non-responsive to their gender needs, while they are also discriminated against based on traditional gender-based division of labour which made women responsible for child bearing and rearing roles, and the care of the family as a whole. Therefore, the Nigerian labour market is characterised by occupational sex segregation, gender based discriminatory labour laws, gender

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ESMF Nigeria Solar IPP Program (January 2019) unfriendly work environment, gender-based labour abuse; and insensitivity of the labour unions to gender-based abuses among others. A major policy goal is therefore needed in sub-projects implementation to achieve equality and equity in employment opportunities and eliminate all discriminatory and abusive practices (on the grounds of sex, race, ethnicity, class, religion, age, disability, or marital status) against the employment of women in the public and private sectors of the economy

5.2.1 Gender issues in Northern Nigeria

Gender inequality remains a major barrier to human development. Girls and women have made major strides since 1990, but they have not yet gained gender equity. The disadvantages facing women and girls are a major source of inequality. All too often, women and girls are discriminated against in health, education, political representation, labour market, project developments etc. with negative consequences for development of their capabilities and their freedom of choice (UNDP Human Development Reports 2018). In Northern Nigeria, girls and women are often secluded from the general public for religious and cultural beliefs. This have very negative impacts on their self-esteem and exposure to development. This can also been seen in the political participation of women in Southern Nigeria and Northern Nigeria. In 2015, 8 women were elected into the upper legislative chamber out of which only 1 comes from Northern Nigeria with the remaining 7 from Southern Nigeria. This further underscores the level of gender inequality in the nation as a whole. The position of women in Africa had been seen from the perspective of a second- class citizen to men. They are viewed as those who look after the homes, bear and rear children for the men. According to William (1990:134), women are preoccupied with looking after the homes, men and the children. In his views, Read (1996:19) he wrote that women are female human being, mistress and servants who does the domestic chores (cleaning and cooking). Nigeria still ranked very low in the Gender Equality Index and Gender Development index of the United Nations Human Development Report of 2018. Women are still shuffled to the back when it comes to decision making most importantly regarding developments. In Northern Nigeria, discussions on project developments are limited to males because of religious and cultural beliefs. The economic position of women had been well documented by Aderemi (1997:211). He stated that women wield substantial economic power integrated into the macro and micro economy. He further stressed that women control the

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ESMF Nigeria Solar IPP Program (January 2019) bulk of local and long-distance trade, dominate the food processing and cottage industries, and participate actively in agriculture and health care. It had also been stressed that women are home makers and are known to be able to cope with jobs that are repetitive in nature such as agriculture, cooking and other skilled vocational occupations. The World Bank (2004) year book revealed startling reports about women thus: • Women constitute about 50% of world population. NPC (1991) puts Nigerian male: Female as 44,544531 and 43,969,970. Women comprise 75% of the world’s illiterate people. (This may be higher in Africa) • Women head up to 30% of world’s household • Women produce about 50% of the world’s food • Women received only 1/10 of the world’s total income • Women own less than 1/100 of the world’s real properties These theoretical and empirical positions about women points to the fact that for any functional and sustainable plan of actions for national development, it should put into serious consideration the women populace.

5.2.2 Impediments to the Girl-Child Education in Northern Nigeria A number of factors and practices affect the girl-child education in northern Nigeria. These include poverty/child labour, illiteracy/ignorance, easily marriage Islamic religious practices and social stratification/family background. Socio- cultural value, peer influence etc. These factors which could be encountered in the sub-project areas of the Solar IPP program are summarized in the Table belowbelow.

Table 5.1. Impediments to the Girl Child Education in Northern Nigeria

Socio-economic Description factors Most girls within the age bracket of 12 – 15 years are contracted or conscripted into marriage without prejudice to the health and socio-psychological hazards Early Marriage involved. The parents due to poverty are left with no option than to resolve to faith. Such females are completely denied access to educational opportunities. It is common practices to see girls of school age hawking various article of Poverty /Child trade in urban and rural area in Northern Nigeria. This situation had been Labour blamed exclusively on the unacceptable poverty level in Nigeria Closely related to poverty and child labour is ignorance and illiteracy. The Illiteracy/Ignorance value of education had not been fully acknowledged by most parents in Northern Nigeria particularly those that reside in the remote villages.

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The Northern Nigeria is predominantly secular. The Islamic moral tenants based Islamic Religious on chastity discourage fornication. Based on this belief most parents Practices encourage their females to marry at the expense of formal schooling. The socio-cultural set up in most part of the Northern Nigeria encourages the Socio-Cultural education of males in favour of the female who are expected to perform Values various domestic chores at home. Peer-Group Due to peer group influence most parents and their female children tend to Influence borrow/adopt obnoxious practices detrimental to girl-child education. They would not want to be branded exception to societal practices. The social background and family structure of the girl-child to a large extent Family depend on their chances of enrolment to formal education. Enlightened Background/Social parents or families in Northern Nigeria do not discriminate against female Stratification education.

Based on these, there should be planned Gender Assessment and Development under the sub-projects, which will help analyze gender issues during the preparation stage of sub-project and design interventions. At the sub-project level, gender analysis should be part of the social assessment and the analysis will be based on findings from gender specific queries during primary data collection process and available secondary data. The quantitative and qualitative analysis will bring out sex disaggregated data and issues related to gender disparity, needs, constraints, and priorities; as well as understanding whether there is a potential for gender based inequitable risks, benefits and opportunities. Based on the specifics, interventions could be designed, and if required, gender action plans can be prepared.

5.3 Vulnerable Groups As part of the Program, all 13 sub-projects being considered will require large expanse of land which are mainly in rural areas. It is a known fact that agricultural land use is predominant in rural areas of Northern Nigeria. What this means is that the majority of the people within the project areas will depend on agriculture and land-based resources for livelihood. Acquisition of land for these sub-projects without proper mitigation measures will expose some social groups to economic vulnerability. This might include women, widows, farmers, pastoralists and women heads of households, as well as the elderly and people with disabilities.

5.3.1 Indigenous Groups Indigenous peoples, also known as first peoples, aboriginal peoples or native peoples, are ethnic groups who are the original settlers of a given region, in contrast to groups that have settled, occupied or colonized the area more

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ESMF Nigeria Solar IPP Program (January 2019) recently. According to the World directory of minority and indigenous people in Nigeria published by the Minority Group International in May 2018, the main minority and indigenous people are Hausa / Fulani (29 per cent); Yoruba (21 per cent); Igbo (Ibo) (18 per cent), Ijaw (10 per cent), Kanuri (4 per cent), Ibibio-Efik (3.5 per cent), Tiv (2.5 per cent), Edo (Bini) (less than 1 per cent), Nupe (less than 1 per cent). In the last census conducted in 2006. The country did not then and does not now, collect or analyse data disaggregated by ethnicity, religion or language. However, it is recommended that the proponent investigate this issue further and confirm in final documentation. Also, as stated in Chapter 4, and subject to additional studies as part of the ESIA, there may not be underserved ethnic minority/Indigenous people in the area and all sub-projects are required to show broad community support. The AFC, as AE, will require the sub-projects selected under the funding program, to assist this further as part of the ESDD process (detailed in this ESMF).

5.4 Approaches to Consultation, including Vulnerable Groups 5.4.1 Vulnerable group inclusion The term “vulnerable groups” refers to people who, by virtue of gender identity, ethnicity, age, disability, economic disadvantage or social status may be more adversely affected by project impacts than others and who may be limited in their ability to claim or take advantage of project benefits. Vulnerable individuals and/or groups may also include people living below the poverty line, the landless, the elderly, women- and children- headed households, refugees, internally displaced people, ethnic minorities, natural resource dependent communities or other displaced persons who may not be protected by national and/or international law. It is important to identify and address these groups during the early consultation phases of the sub-projects in order to avoid placing additional strains on these groups as a result of the sub-projects. AfDB’s ISSs have standards for consultation with vulnerable groups, which will be a guide in Program implementation. These are detailed in Table 5.2 below:

Table 5.2 - Vulnerable Group Guidelines to be Implemented in the Program

The AfDB ISS defines vulnerable individuals or groups as those within a project’s area of influence who are particularly marginalized or disadvantaged and who might thus be more likely than others to experience adverse impacts from a project. The vulnerability can be determined by identifying the likelihood that

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ESMF Nigeria Solar IPP Program (January 2019) an individual or a group faces harder conditions as the result of the implementation of a project. Vulnerable status may stem from a group’s gender, economic status, ethnicity, religion, cultural behavior, sexual orientation, language or physical and psychological health conditions. Vulnerable groups may include, among others, female-headed households, those below the poverty line, the landless, those without legal title to assets, ethnic, religious and linguistic minorities, Indigenous Peoples, those who are disabled, etc. Vulnerable groups are more likely to be exposed to adverse impacts in largescale projects with a large area of influence, potential cumulative impacts and multiple affected communities, than in small-scale projects that have site- specific issues. a. AfDB ISS requirements on vulnerable groups The Bank’s Operational Safeguards 1 (OS1) details the following when assessing projects and sub-project impacts on vulnerable groups: • in assessing the potential impacts of Bank operations on affected communities, the borrower or client shall make use of adequate and qualified expertise to identify people and groups that may be directly, indirectly and/or disproportionately affected or marginalized by the project because of their recognized vulnerable status. • where groups are identified as vulnerable, the borrower or client shall implement appropriate differentiated measures so that unavoidable adverse impacts do not fall disproportionately on these vulnerable groups, and so that they are not disadvantaged in sharing development benefits and opportunities (such as roads, schools, healthcare facilities, etc.). • OS 1 emphasizes the need to assess gender issues in the context of vulnerability. A gender assessment shall be made for every project and shall form the basis for project design and compensation plans that lead to enhanced gender balance. • OS 1 states that groups that may be considered vulnerable may include social or cultural groups recognized as Indigenous Peoples. The Bank seeks to promote the safeguarding of Indigenous Peoples’ lands, natural assets and other cultural heritage by its member countries and to provide special protection for projects that may involve their resettlement.

Also, the ISS requires the Environmental and Social Assessment process to systematically identify vulnerable groups. The identification of vulnerable groups shall be the result of a careful analysis of the social and economic context in which the project will operate. The presence of factors that causes vulnerability should be analysed, as should potential project impacts on vulnerable groups, the capacity of the vulnerable groups to cope with, or

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ESMF Nigeria Solar IPP Program (January 2019) adapt to, such impacts, and the potential for such impacts to be mitigated in a way that takes account of the specific vulnerabilities or marginalization status in question. Taking the particular circumstances of the vulnerable groups into account should help borrowers or clients to better define impacts relevant to the groups, and to improve the design and implementation of a specific Community Development Plan (CDP) or an Indigenous Community Development Plan (ICDP). b. Objective and scope of vulnerable group identification The objective of identifying vulnerable groups is to enable a strategic focus on the consideration of their views and specific needs during the project planning, and thereby to specifically avoid harm to them, as well as to ensure that they have the opportunity to participate in and benefit from the proposed project. Having identified the vulnerable groups, the objective becomes to define differentiated measures for them to ensure that they are protected and that suitable benefits are adequately planned and directed to them as set out below: i. Vulnerable Groups and Gender Projects may have different impacts on women and men, owing to their different socio-economic roles and their varying degrees of access to and control over assets, productive resources, and employment opportunities. Gender discrimination often limits access to the resources, opportunities, and public services necessary to improve standards of living. In addition, there may be norms, societal practices, or legal barriers that impede the full participation of people of one gender (usually women, but potentially men) in consultation, project planning, decision-making, implementation of project activities or the sharing of benefits. ii. Other Vulnerable Groups Those of low economic status, particularly those below the poverty line, the landless and those without legal title to assets may also lack the resources and capacity to participate in project decision-making or benefit-sharing to the same degree as those of higher economic status. In addition, those with health conditions, those who are disabled, etc., are also groups that commonly lack the capacity, means or voice through which to avoid negative project impacts and reap project benefits. c. Differentiated measures for vulnerable groups’ inclusion in development Once groups have been identified as vulnerable, the borrower or client shall propose and implement differentiated measures so that adverse impacts do not fall disproportionately upon them, and so that vulnerable groups are not disadvantaged in sharing development benefits and opportunities. Differentiated measures are required to respond to the requirements of specific types of vulnerable groups. The AfDB ISS provides guidance to differentiated

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ESMF Nigeria Solar IPP Program (January 2019) measures requirements to specific types of vulnerable groups including measures responding to vulnerable gender groups, indigenous people, vulnerable groups experiencing resettlements and other vulnerable groups such as groups of low economic status, those with health conditions, those who are handicapped, etc. Meaningful consultation is of vital importance in determining what differentiated measures are necessary for the particular vulnerable groups in question, as well as in seeking broad community support (BCS) from such vulnerable groups. There should be a targeted and meaningful consultation process, backed by adequate information, and carried out with each vulnerable group. Specific, targeted consultation sessions with each vulnerable group are important because consultations with non-vulnerable groups may not always reveal the special conditions or concerns of vulnerable groups, and how these might be addressed in a differentiated and targeted manner. Consultation around differentiated measures for vulnerable groups requires a socially and culturally sensitive approach that shall ensure that: • The vulnerable group in question is represented in discussions, and that members of this group are given ample and appropriate opportunities and channels to express their views, concerns and aspirations in the language and manner of their choice, without external manipulation, interference, coercion, or intimidation. • Representative bodies and civil society organizations, as well as a sufficient number of members of the vulnerable group themselves, are included in the consultation process. • Local leaders deemed to “represent” the views of vulnerable members of the community actually have the members’ consent and understand their views and perspectives. • Spaces for discussions are created that are perceived to be “safe” from the perspective of the vulnerable group, and that are easily accessible to them.

The consultations with each vulnerable group should primarily seek to elucidate the special conditions and concerns of the group in question, and the form that associated differentiated measures should take in order to ensure that the vulnerabilities of the group in question are not further exacerbated by the project and that the group is given the opportunity and the capacity to benefit from the project according to their views and needs.

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ESMF Nigeria Solar IPP Program (January 2019) 5.5 Gender Mainstreaming and Vulnerability Assessment The primary objective of the vulnerable persons’ assessment and assistance measures is to avoid the occurrence of project-induced vulnerability, and if it occurs, to mitigate this through preventive and follow-up measures. Criteria used to assess project-induced vulnerability include pre-project poverty, household composition, income, food supply, housing, social support, and health. The criteria are used to establish household vulnerability relative to local conditions. Vulnerability thus becomes locally defined as those households that are recognized to be in a difficult situation against the background of general poverty in the area. Vulnerability should be viewed in two stages: pre-existing vulnerability and transitional hardship vulnerability. Pre-existing vulnerability includes that stage which would be present with or without sub-project development. Transitional hardship vulnerability occurs when those directly affected by a sub-project, whether predisposed or not, are unable to adjust to new conditions due to shock or stress related to sub-project activities. Project measures to identify vulnerable households and individuals include: • Participatory engagement techniques to confirm community perceptions of well-being and to identify at-risk households; • Conduct of socio-economic survey and analysis of baseline data to identify at-risk households; • Implementation of household monitoring surveys designed to reveal trends in social welfare (household composition, assets, sources of income, expenditures etc.); • Self-registration at offices of households that identify themselves as vulnerable or at risk; with all such registrations leading to an evaluation of that household by the project/investor team in order to assess the households’ vulnerability; and • Regular visits to all physically displaced households and any economically displaced households identified as vulnerable during resettlement planning and implementation processes to re-assess those households’ vulnerability. Such visits will occur at least once a quarter; and each visit will be recorded in the database flagging changes to indicators that are problematic.

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ESMF Nigeria Solar IPP Program (January 2019) 5.6 Implementation of Gender Considerations in the Program In consideration of Gender Issues in Northern Nigeria, the Program has developed a Gender Action Plan (GAP) and each sub-project will be required to have a Project GAP.

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ESMF Nigeria Solar IPP Program (January 2019) 6 POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS 6.1 Overall Context The development of sub-projects will be a source of renewable electricity production and it is expected to have highly positive E&S impacts for the affected communities, States and Nigeria at large. However, the sub-projects will inevitably have some adverse impacts on the biophysical and social environment particularly during pre-construction (land acquisition), construction and decommissioning phases. The adverse impacts will largely be localized in spatial extent, short term and occurring within less sensitive environmental areas. These adverse negative impacts are likely to be readily identified, assessed and manageable through the application of appropriate mitigation measures, good E&S (E&S) practice, sound design, good construction practices, effective maintenance and adequate supervision and enforcement during the project life cycle. As part of each sub-project in the Program, E&S impact analysis of a sub-project (or project options) consists of comparing the expected changes in the biophysical and socioeconomic environment with and without the sub-project. 6.2 Negative Environmental and Social Impacts The envisaged negative impacts of the sub-projects are presented in Table 6.1 below:

Table 6.1. Anticipated Negative Environmental and Social impacts of sub-projects (non- exhaustive)

Project Phase Environmental/ Impacts Social Receptor Pre- Social (Human) Land use construction Environment • Loss of Agricultural/livestock/other productive use land Phase • Loss of homes, structures other than homes, crops and economic trees • Conflicts between farmers and pastoralists with regard to land • Grievances due to land resettlement and compensation;

Construction Biophysical Phase Environment Soils, Run-off and flooding • Pollution of groundwater from discharges and accidental releases during construction of solar farm, access roads and transmission lines. • Interruption of drainage patterns and lack of water table replenishment, as a result of ground clearance and earthworks Pollution of soils and water

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Project Phase Environmental/ Impacts Social Receptor • Drainage of construction site /camp sewage effluent polluting watercourses. • Release of hazardous substances during construction, operation (e.g. vehicle spills) leading to soil, surface or groundwater contamination. Air Quality • Dust from construction, and other emissions during construction and operation (e.g. wildfires), could affect human health, crops and wildlife Noise and vibration • Noise and vibration from equipment, traffic and activities during construction solar farm, access roads and transmission lines (and maintenance) at sites and associated facilities, may disturb sensitive noise receptors (human and fauna) Resources and waste • Construction and operation will require supply of water from surface or groundwater, which could affect existing supply for human communities and ecosystems • Water requirements may be high for large/concentration solar power plants (cooling water is required for solar concentration devices). • Inefficient waste management during construction and maintenance leading to excess materials consumption, generation of wastes/emissions, soil and water pollution • Loss, fragmentation and degradation of habitat, and severance of animal migration routes and pathways • Land clearance for the solar power plant and upgrade/expansion of existing plants may cause loss or fragmentation of protected areas and other areas of conservation interest and degradation following poorly managed rehabilitation. • Severance of terrestrial routes and watercourses used for migration or for access to feeding and breeding areas (e.g. by access roads ) • Construction (and to a lesser extent operational impacts) on habitats and species from habitat alteration and degradation (e.g. from changes in drainage, soil erosion, pollution of water, soils or air, introduction of invasive species and general human disturbance ) Direct impacts on flora and fauna • Clearance of vegetation may lead to loss of plant species and habitat of conservation interest • Solar power plants could displace animals and disturb their habitats, by direct disturbance during construction and operation (e.g. from noise, light disturbance at night, general human presence) Invasive Species

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Project Phase Environmental/ Impacts Social Receptor • Movement of plant from the arrival of workforce into areas could introduce invasive species which adversely impact fauna, flora, ecosystems, and crops. Social (Human) Physical and Economic Displacement of People, Property, Environment Assets and Resources • Development of solar power plants, especially large ones, may physically displace people, or lead to the loss of assets, e.g. land of agricultural or other beneficial use Cultural Heritage • Displacement or damage to cultural heritage sites by construction activities, harm to the setting, amenity value, etc. of the site. Community Health, Safety and Security • Poor construction management practices may lead to adverse effects on safety, human health and wellbeing. • Interaction between in-migrant construction workers and local communities may increase occurrence of communicable diseases, including HIV/AIDS and sexually transmitted diseases (STDs). Landscape and visual impacts • The solar power plant, especially if large, could generate negative landscape impacts. Workforce-Community Interactions • Real or perceived disruption to normal community life, through the physical presence of a construction workforce. Operation Biophysical • Hazardous wastes from damaged PV panels, inverters and Phase Environment batteries; • Soil contamination from release of hazardous materials • Groundwater contamination from waste water and hazardous chemicals; • Over-extraction (depletion) of ground water reserves for operational activities especially for panel washing during dry seasons; • Solar systems can pose risks to wildlife especially birds that may confuse solar panels with water bodies. This could result in the loss and reduction of the local birds’ population; Social (Human) • Increased potential of fire outbreaks due to failure of Environment electrical installations; • Risks of theft cases in absence of adequate security measures • Potential for fire outbreak due to failure of electrical installations; • Risks of occupational accidents and injuries to workers including exposure to hazardous chemicals, electrocution and fall from high positions. • Local communities are unable to benefit from the electricity produced by the project because local communities are not connected to the grid or not served by electric utilities.

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6.3 Positive Environmental and Social Impacts The summary of envisaged positive impacts including gender sensitive positive impacts of the sub-projects are presented in Table 6.2 below.

Table 6.2. Anticipated Positive Environmental and Social impacts from sub-projects (non- exhaustive)

Environmental and Project Phase Positive Impacts Social Receptor Biophysical -- Environment • Generation of renewable electricity to boost national power supply; • Construction of access roads to enhance easy Preconstruction movement of people and their farm produce & Construction Social (Human) • Employment of local labour in the form of direct and Environment indirect employment during construction. • Improved livelihood and poverty reduction • Stimulation of local and regional socioeconomic activities arising from employment and award of contracts • Due to the nature of the sub-project operations, no negative impacts on air quality, soil or water resources Biophysical is anticipated during operation phase Environment • Reduction in the use of fossil fuels, thereby reducing GHGs gas emissions • Technology transfer and training of project staff on solar Operation power plant operation, management and Phase maintenance; and • Increased revenue generation to government through Social (Human) permits and taxes Environment • Creation of tourist attraction and recreational opportunities; • Employment of local labour during operation • Improved livelihood and poverty reduction

6.4 Gender Sensitive Development Impacts In Africa, women are primary household caretakers and responsible for the availability of energy sources for lighting and cooking. As such, there is huge pressure on them to source for energy required for running of the homes. The implementation and operation of sub-projects is however anticipated to improve the livelihood, living conditions, and overall quality of life particularly for women,

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ESMF Nigeria Solar IPP Program (January 2019) girls and other vulnerable groups as it will make more electricity available and thereby increase access for them. In general, most projects may have different impacts on women and men, because of their different socio-economic roles and their varying degrees of access to and control over assets, productive resources, and employment opportunities. Consequently, the sub-projects will be implemented in line with the AfDB ISS and GCF’s ESS, by implementing differentiated measures so that women, girls and other vulnerable groups are specifically targeted in sharing development benefits and opportunities. The key activities targeting women’s participation may include employment and training to ensure that the sub- project is gender-sensitive and the benefits are shared among men and women. Some of the envisaged gender sensitive benefits of the sub-projects are summarised in Table 6.3.

Table 6.3. Anticipated Gender Sensitive impacts on sub-projects

Environmental Project and Social Positive Impacts Phase Receptor • The existence of electricity energy (solar) will allow villagers including women to engage themselves in various economic activities; • Entrepreneurial job creation resulting from productive use of electricity in agriculture, agro processing and light manufacturing • Improvements in health and safety from elimination of smoke and soot from kerosene lamps and candles for Women, Girls & lighting and fire hazard from naked flames Operation Vulnerable • Better access to education especially for girls through Phase Groups lighting for homework and better access to web-based materials at school • Long term green job creation in the green economy sectors linked to sustainable energy and Nigeria climate adaptation action. • Poverty alleviation through virtuous circle of more efficient value creation and about 40 % lower expenses devoted to energy for lighting and mobile charging for average residential households.

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Environmental Project and Social Positive Impacts Phase Receptor • Food security through climate resilient agriculture less dependent on rains through irrigated crops and refrigeration for better preservation of perishables

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ESMF Nigeria Solar IPP Program (January 2019) 7 POTENTIAL MITIGATION MEASURES

7.1 Introduction The key E&S risks and impacts identified as cross-cutting for the Program have been identified and presented in previous sections. Table 7.1 below presents appropriate mitigation and enhancement measures for the key negative E & S impacts of the sub-projects. The ESMPs and RAPs of individual sub-projects will draw from these mitigation measures. A generic ESMP for individual sub-projects is provided in Annex 2.

Table 7.1. Examples of mitigation measures which could be applied to sub-projects selected for funding

Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor Pre- Social Land use Preparation and construction (Human) • Loss of implementation of land Phase Environment Agricultural/livestock/other acquisition and resettlement productive use land action plan in accordance • Loss of homes, structures with the RPF (Annex 3) other than homes, crops and economic trees Implementation of the RAP • Conflicts between farmers which provides, among others, and pastoralists with regard the following: to land • Grievances due to land Assessment of the initial value resettlement and of land improvements, compensation; structures and crops;

Provision of compensation to project affected people (PAP) based on replacement cost value of lost assets (i.e. no depreciation).

Provision of resettlement/relocation option for those whose entire homes are displaced.

Provides for differentiated treatment/assistance to vulnerable PAPs. Construction Biophysical Soils, Run-off and flooding Installation of sewage Phase Environment treatment to meet required

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor • Pollution of groundwater standards; hygiene training for from discharges and workforce. accidental releases during construction of solar farm, access roads and transmission lines. • Interruption of drainage Minimization of cleared areas patterns and lack of water and soil disturbance, with table replenishment, as a revegetation as soon as result of ground clearance feasible, with native species and earthworks Early installation and regular maintenance of drainage and diversion structures, silt traps etc.; drainage outlets to discharge into vegetated areas if possible; vegetation along watercourses and drainage lines to be retained if possible Avoidance of areas liable to flooding, slope instability and water crossing where possible Retention of top soil for restoration (including tilling and revegetation) as soon as practicable. Pollution of soils and water Installation of sewage • Drainage of construction treatment to meet required site /camp sewage standards; hygiene training for effluent polluting workforce. watercourses. • Release of hazardous Materials handling and control substances during procedures construction, operation Control of construction vehicle (e.g. vehicle spills) leading movements and prohibition of to soil, surface or vehicle washing in groundwater watercourses, and similar contamination. practices Emergency response plans during construction (contractors and local authorities) and operation (local authorities) Air Quality Sensitive siting of construction • Dust from construction, facilities and other emissions during Dust control and suppression construction and measures operation (e.g. wildfires), Modern equipment with meeting appropriate emissions

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor could affect human standards and regular health, crops and wildlife preventative maintenance No use of ozone depleting substances during construction Noise and vibration Sensitive siting of construction • Noise and vibration from facilities equipment, traffic and Use of modern equipment activities during fitted with abatement devices construction solar farm, (e.g mufflers, noise access roads and enclosures): good transmission lines (and maintenance regime maintenance) at sites and Strict controls of timing of associated facilities, may activities e.g any activities with disturb sensitive noise high noise emission; prohibition receptors (human and on night working fauna) Observance of seasonal sensitivities ( e.g. breeding seasons ), and alteration of activity to reduce noise levels at that time Speed controls and other traffic calming measures to prevent excessive speed around settlements/sensitive receptors. Resources and waste Water supply prior to any • Construction and abstraction, to inform a operation will require sustainable water supply of water from management plan surface or groundwater, No abstraction without prior which could affect existing approval of relevant supply for human authorities at all locations communities and Promotion of water efficiency ecosystems (including leak detention, preventative maintenance of equipment) and water recycling. • Water requirements may The use of a dry cooling be high for system instead of a wet large/concentration solar cooling system for power plants (cooling concentrated solar power water is required for solar plants will reduces water concentration devices). requirements Promotion of water efficiency (including leak detention, preventative maintenance of equipment) and water recycling

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor • Inefficient waste Preparation of waste management during management plan following construction and the waste hierarchy, maintenance leading to supported by staff training excess materials Use of authorised contractors consumption, generation for hazardous and any other of wastes/emissions, soil wastes which the project and water pollution cannot dispose of safely • Loss, fragmentation and Careful siting of all project degradation of habitat, components, with advice from and severance of animal biodiversity authorities/wildlife migration routes and specialists pathways • Land clearance for the Strict avoidance of sensitive solar power plant and areas, critical natural habitats, upgrade/expansion of and protected natural habitat existing plants may cause or project locations where loss or fragmentation of activities would adversely protected areas and other affect rare and endangered areas of conservation animal species. interest and degradation following poorly managed Wherever feasible, rehabilitation. establishment of buffer zones around conservation areas, watercourses and other location identified as ecologically sensitive and avoidance or minimisation of activity within these zones Rehabilitation of cleared areas with native species, and ecosystem restoration in habitat of conservation value, using specialist advice and input backed up by a long- term monitoring programme and corrective actions as necessary. • Severance of terrestrial Sensitive siting based on good routes and watercourses understanding of physical and used for migration or for biological baseline conditions access to feeding and Wildlife crossings for terrestrial breeding areas (e.g. by animals and design of access roads) culverts/crossing structures to avoid impacts on aquatic animal movement. • Construction (and to a Where development in lesser extent operational sensitive areas cannot be impacts) on habitats and

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor species from habitat avoided, mitigation may alteration and include: degradation (e.g. from Minimisation of area changes in drainage, soil impacted, clear demarcation erosion, pollution of water, of remaining intact areas of soils or air, introduction of habitat, and prohibition invasive species and activity into those areas for general human any purpose disturbance) No ground clearance upstream of sensitive areas unless appropriately engineered drainage installed Habitat rehabilitation and ecosystem restoration of areas no longer required after construction, as soon as possible If loss of critical habitat is inevitable, development/implementation of an offsets programme Also see measures under soils, run-off and flooding and pollution of soils and water above and invasive species below Direct impacts on flora and Careful site selection and fauna siting of all project • Clearance of vegetation components with advice from may lead to loss of plant biodiversity authorities/wildlife species and habitat of specialists conservation interest Careful planning of phasing and timing of construction activities Demarcation and avoidance of species of conservation interest in work areas here possible, otherwise transfer to other suitable location if possible, under expert supervision Also see measures under soils, run-off and flooding and pollution of soils and water above and invasive species below • Solar power plants could Careful siting of all project displace animals and components, with advice from disturb their habitats, by

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor direct disturbance during biodiversity authorities/wildlife construction and specialists operation (e.g. from noise, Careful planning of phasing light disturbance at night, and timing of construction general human presence) activities Demarcation and avoidance of areas of conservation of interest (high value, species, feeding or breeding sites, migration routes etc.) Invasive Species • Invasive Species • Movement of plant from Management Plan, which the arrival of workforce should be developed and into areas could introduce implemented in invasive species which consultation with adversely impact fauna, authorities, including flora, ecosystems, and appropriate eradication crops. measures for different species/groups of species. • Staff training and awareness raising in communities. • No introduction of exotic species (e.g. for site rehabilitation) without specialist vetting and government approval. Social Physical and Economic • Initial site selection taking (Human) Displacement of People, into account original land Environment Property, Assets and use, preferentially Resources selecting land of minimal • Development of solar value. power plants, especially • Comparison of alternative large ones, may physically locations. displace people, or lead • Careful siting of all project to the loss of assets, e.g. components,, and avoid land of agricultural or occupation of areas which other beneficial use are inhabited or regarded as of high value by communities (e.g. horticulture, community orchards) where possible. • Early development and sensitive implementation of resettlement planning, in accordance with national regulations and international good practice to compensate

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor for any losses (both physical and economic.). • Adoption of a Stakeholder Engagement Plan, as a framework for early and ongoing community consultation. • Implementation of a Grievance Procedure (see Grievance Procedure and Redress Mechanisms guidance note). Cultural Heritage • Strict avoidance of • Displacement or damage locations where the to cultural heritage sites by project would displace, construction activities, alter or render inaccessible harm to the setting, important cultural heritage amenity value, etc. of the sites, including historical site. sites/monuments, graves, churches and mosques. • Transparent and culturally appropriate communication with communities regarding employment opportunities. • Fair and transparent hiring and staff management procedures. • Development of measures to manage the transition after construction is complete, including SME development, ongoing opportunities for the workforce in road management and maintenance, reskilling and alternative employment. • Careful siting, taking account of community consultation and if appropriate specialist surveys. • Implementation of a “Chance Finds” procedure during construction. Community Health, Safety • Procedures for sustainable and Security local procurement, in

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor • Poor construction consultation with local management practices authorities and community may lead to adverse leaders. effects on safety, human • Local capacity building to health and wellbeing. foster community resilience.

• Interaction between in- • Good construction site migrant construction “housekeeping” and workers and local management procedures communities may increase (including site access). occurrence of • Contractors to screen communicable diseases, workers for contagious including HIV/AIDS and diseases and educate sexually transmitted them about local diseases. diseases (STDs). • Campaign on disease Conversely, migrant prevention. construction workers could • Disease control measures, be vulnerable to local e.g. no pools of standing latent diseases. water, rodent control, treatment of water. • Risk assessments and emergency response planning to consider impacts on local communities. • Also see measures under Soils, Run-off and Flooding, and Pollution of Soils and Water above. • Implementation of a health management system for the construction workforce, to ensure it is fit for work and that it will not introduce disease into local communities. • Training and awareness training for workforce and their dependents on HIV/AIDS and other STDs, and communicable diseases including malaria; health awareness raising campaigns for communities on similar topics. Landscape and visual impacts • Careful siting.

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor • The solar power plant, • Landscaping design by especially if large, could qualified personnel (e.g. a generate negative landscape architect) landscape impacts. working closely with the local communities and other relevant parts of government, e.g. Department of Tourism. Workforce-Community • Works procedures, defining Interactions a Code of Appropriate • Real or perceived Conduct for all workers disruption to normal • Training for all of community life, through construction workforce, the physical presence of a and subsequently of construction workforce. permanent staff, in • Conflicts and increased acceptable behaviour criminality, including with respect to community possible increase in sexual interactions. assaults on women • Contractors should maintain good community relations, undertake periodic dialogues and coordinate its activities with the local communities. Operation Biophysical • Hazardous wastes from • Implement Extended Phase Environment damaged PV panels, Producers Responsibilities inverters and batteries; and buy back clause on • Soil contamination from the supply of PV panels, release of hazardous inverters and Batteries materials where the producers can • Groundwater contamination take them back and from waste water and dispose properly. hazardous chemicals; • Hazardous wastes should • Over-extraction (depletion) be disposed through of ground water reserves for licensed waste collector operational activities especially for panel washing with due diligence on their during dry seasons; final disposal. • Solar systems can pose risks to • Installation of sewage wildlife especially birds that treatment to meet may confuse solar panels required standards; with water bodies. This could hygiene training for result in the loss and workforce. reduction of the local birds’ • Activities capable of population; contaminating ground water through the use of hazardous chemicals shall be carried out at the

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor appropriate places mostly on impervious surfaces. • Demarcation and avoidance of areas of conservation of interest (high value, species, feeding or breeding sites, migration routes etc.) Social • Increased potential of fire • Ensure electrical installations (Human) outbreaks due to failure of are carried out safely and Environment electrical installations; properly. • Potential for fire outbreak due • Provide firefighting to failure of electrical equipment to cover all areas installations; of electrical installation • Risks of occupational • Develop an Occupational accidents and injuries to Health and Safety Manual workers including exposure to and make it available to all hazardous chemicals, workers. electrocution and fall from • Implement the OHS manuals high positions. • Risks of theft cases in and training s for workers on absence of adequate its implementation. security measures • Provide and enforce the use Local communities are of Personal Protective unable to benefit from the Equipment electricity produced by the • Prepare and Implement project because local project specific security plan communities are not which will key into the connected to the grid or not existing government security served by electric utilities. architecture. • Project operator to provide alternative program to enable local communities to share with the benefits of the project.

7.2 Approach to Environmental and Social Risk and Impact Mitigation The management of E&S impacts will draw from the GCF ESS/IFC Performance Standard requirements and applicable AfDB ISSs. Each sub-project under the Program will be required to conduct a detailed E&S assessment in accordance with international standards, which will include mitigation measures that draw from the results of the assessment and good international industry practice.

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Projects considered for financing under the Program will undergo the E&S due diligence and appraisal process detailed in this ESMF and will be evaluated against the requirements of: • the IFC Performance Standards/GCF ESS • AfDB ISSs • the WBG Environmental, Health and Safety (EHS) General Guidelines • relevant EU Directives and Guidance Notes

The application of these different guidelines and best practices will be informed by the country-specific and site-specific characteristics of the sub-projects and will be in line with Nigerian regulations. It is expected that sub-projects to be funded by the Program will be Category B (or Category 2) projects. None of the sub-projects are expected to physically displace a significant number of people; the impacts would be mostly on loss of agricultural/pasture lands which depends on the land requirements of the project (which is about 2 – 4 hectares per megawatt capacity). Impacts on cultural heritage sites or structures as well as on natural habitats will be strictly avoided through site selection/realignment. In terms of indigenous peoples, the sub-projects located in areas where the host communities qualify as indigenous peoples as defined under World Bank Policy OP 4.10, should be required to undertake and present evidence of the conduct of free and prior informed consultation and broad community support, as well as demonstrate that the communities are in fact benefited from the sub-project in terms of access to electricity or by other programs to be provided by the sub- project. To ensure that these are fulfilled and the key issues are addressed, the following eligibility criteria have been included in the Screening Checklist/Form (see Annex 1A) to be used in screening the 13 prospective IPP projects: The Program will not favorably consider sub-projects that: 1. Would displace or involve relocation of more than 50 homes or a population of more than 200; 2. Would encroach or be located inside a protected area of natural habitat; 3. Would displace, modify or render inaccessible any important Cultural Heritage site or structure, including important historical and religious sites/structures; 4. Would be located in the territory of any historically underserved traditional ethnic community or indigenous people (as defined by World Bank OP 4.10)

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territory, but does not provide benefit to the communities in terms of access to electricity or in terms or in terms of some other plan; and, 5. Is assessed to be Category A or Category 1 based on IFC/GFC and AfDB Categorization, respectively. Subprojects that meet these criteria will be required to undertake E&S assessment, and prepare and submit pertinent safeguards instruments, particularly ESIAs with Environmental and Social Management Plans (ESMP) which includes as attachment, as necessary, other special plans such as RAPs and Stakeholder Engagement Plans (SEP). The types and extent of the assessments and documentary requirements will be determined during the E&S Screening. An indicative and non-exhaustive list of potential mitigation measures which could be applied to any of the sub-projects in the Program is presented in Annex 2.

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ESMF Nigeria Solar IPP Program (January 2019) 8 ENVIRONMENTAL AND SOCIAL MANAGEMENT PROCEDURES AND REQUIREMENTS

8.1 Environmental, Health and Safety Guidelines to be implemented by the Program In order to ensure E & S considerations are carefully identified and mainstreamed in all the sub-projects of the Program, the AFC, IFC and AfDB Operational Safeguards will be adopted.

Internationally accepted guidance on environmental, social, health and safety mitigation measures for renewable energy projects can be found in relevant EU Directives and Guidance Notes, as well as the WBG EHS Guidelines. These guidelines will be adopted as part of the design and implementation of the ESMPs, as well as other applicable E & S risk management tools for all sub-projects considered under the Program. The EHS Guidelines contain the performance levels and measures that are generally considered to be achievable at reasonable cost by commercially available technology. The discharged effluent, air emissions, and other numerical guidelines and performance indicators, as well as other prevention and control approaches included in the EHS Guidelines, are considered to be default values applicable to new projects, though the application of alternative performance levels and measures may be considered. The General EHS Guidelines include guidance on a comprehensive range of environmental, occupational health and safety, community health and safety and construction and decommissioning topics. They should be used in parallel with the accompanying Industry Sector EHS Guidelines. The General EHS Guidelines are summarized in the Table belowbelow.

Table 8.1. Summary of WBG/IFC General EHS Guidelines

1 Environmental 2 Occupational Health and Safety 1.1 Air Emissions and Ambient Air Quality 2.1 General Facility Design and Operation 1.2 Energy Conservation 2.2 Communication and Training Wastewater and Ambient Water 1.3 2.3 Physical Hazards Quality 1.4 Water Conservation 2.4 Chemical Hazards 1.5 Hazardous Waste Management 2.5 Biological Hazards 1.6 Waste Management 2.6 Radiological Hazards 1.7 Noise 2.7 Personal Protective Equipment (PPE) 1.8 Contaminated Land 2.8 Special Hazard Environments

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2.9 Monitoring

3 Community Health and Safety 4 Construction and Decommissioning 3.1 Water Quality and Availability 4.1 Environment Structural Safety of Project 3.2 4.2 Occupational Health & Safety Infrastructure 3.3 Life and Fire Safety (L&FS 4.3 Community Health & Safety 3.4 Traffic Safety 3.5 Transport of Hazardous Materials 3.6 Disease Prevention Emergency Preparedness and 3.7 Response Source: IFC/WBG (2007). Environmental, Health, and Safety General Guidelines. 30 April 2007. Available at https://www.ifc.org/wps/wcm/connect/554e8d80488658e4b76af76a6515bb18/Final+- +General+EHS+Guidelines.pdf?MOD=AJPERES [Accessed 02/12/18]

8.2 Environmental and Social Due Diligence Process (ESSD) All sub-projects to be funded under the Program will be required to comply with Nigerian environmental laws and regulations. In addition, based on the equivalence analysis in Section 3.6, each sub-project will also comply with the IFC Performance Standards/GCF ESS and AfDB Operational Safeguards.

The Program will be guided by AFC’s ESDD approach, detailed in table below.

Table 8.2. AFC’s approach to ESDD on the selected sub-projects

Project ESDD process and monitoring requirements Category For Category A projects, assistance of an external expert is mandatory. The most important element of the ESDD is to determine the gaps between the current E&S performance and the benchmark performance/reference standards (IFC Performance Standards, World Bank EHS Sector Guidelines and the AFC’s E&S requirements). The gap analysis with regard to these requirements is considered crucial to ensure that the client is managing E&S risks in accordance with local or internationally recognized E&S risk management standards and laws (whichever is more stringent).

Category The gap analysis must be provided by a qualified external expert. It must lead to A projects the formulation of a reasonable action plan, which describes all the actions necessary to achieve AFC’s E&S requirements in a given time frame after factoring in the criticality of the E&S risks.

The ESDD for Category A projects involves the following steps:

• Requiring the client to fill in AFC’s E&S Questionnaire; • Handing over to the client the relevant, sector-specific Sector Guidelines • Requiring the client to prepare a gap analysis between client’s performance

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and the performance defined in the IFC Performance Standards and World Bank EHS Sector Guidelines with the help of an external expert; • Collecting and studying original ESIA documents or other relevant documents; • Carrying out research on potential risks/non-governmental organizations’ (“NGO”) interest; • Site visit by an external E&S consultant; and • Preparing a CESAP if the AFC’s E&S requirements are not met (based on the gap analysis’s findings). For Category B projects, the AFC E&S Due Diligence Questionnaire and E&S sector- specific Questionnaire is used to assess the E&S impacts and risks. If any red flag issues become apparent, further investigations are initiated and external consultants’ involvement may be necessary. If considered necessary by the E&S Risk Officer or external consultant, a Client E&S Action Plan (CESAP) and mitigatory activities, leading the client to eventual compliance with AFC’s E&S requirements must be developed.

The ESDD for Category B projects involves the following steps: ▪ Requiring the client to fill in AFC’s E&S Due Diligence Questionnaire and the E&S Category ▪ sector-specific Questionnaire; B projects ▪ Collecting and studying original Environmental and Social Impact Assessment ▪ (“ESIA”) documents or other relevant documents (audit reports, etc.) ▪ Carrying out research on potential risks / potential NGO interest; ▪ Optionally - visit the site; ▪ Optionally - preparing a CESAP if the AFC’s E&S requirements for Category B projects are not met; and ▪ Optionally - assistance of an external expert.

Based on the ESDD, the ESRO will prepare an Environmental and Social Review Summary report (“ESRS”), containing the various mitigation measures. Category For Category C projects, no extensive ESDD is necessary. Compliance with E&S C projects laws is checked, and a reputational risk screening is conducted.

The 13 sub-projects that have expressed interest to participate in the Program have already been requested to submit information about the E&S aspects of their respective sub-projects. The following are the key activities of the due diligence process:

1. E&S Screening. All 13 sub-projects will undergo E&S Screening using the Checklist/Form provided in Annex 1A based on the initial information provided. The screening will apply ES-related eligibility criteria discussed above. The screening will contribute to the shortlisting of sub-projects, along with technical and financial criteria under the project selection process described in Table 2.3. The screening will confirm the project risk category and identify critical risks/issues associated with the sub-project, thereby

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focusing the due diligence on few key issues. It will also determine the types and terms of references of the assessments (ESIA) and E&S management plans. 2. E&S assessments and preparation of ESMPs and other E&S documents. Shortlisted sub-projects will be requested to undertake assessments and preparation of plans (if they have not done so yet) and submit these documents to AFC. The results of the E&S Screening will determine the extent of assessments and plans to be required. 3. Review of Safeguards Documents. AFC will review all the safeguards documents/instruments (ESIA, RAP, SEP) submitted by the sub-project proponent and determine if they are compliant with the IFC/GCF Standards. The review shall assess whether the issues identified in this ESMF and the attached RPF have been adequately addressed by each sub- project. In the course of the review, AFC will identify any remaining requirements, including additional information, assessments or studies, plans, activities (e.g. additional stakeholder consultation), or any specific management measure, including hiring safeguards E&S specialists and training requirements. The review may involve validation visits. Disclosure and Decision. In relation to each Category B project to be funded under the Programme, the AFC shall disclose the Environmental and Social Impact Assessment (ESIA) and Environmental and Social Management Plan (ESMP) and, as appropriate, inclusive of the Resettlement Action Plan (RAP), and any other associated information including those relevant to indigenous peoples required to be disclosed in accordance with the GCF Information Disclosure Policy (Project Disclosure Package). AFC shall disclose the project safeguards information 30 calendar days (for Category B projects) in advance of AFC’s decision confirming the commitment to fund the sub-project that has been categorized as Category B, in English and the local language (if not English), on its website and in locations convenient to affected peoples. AFC shall provide the Project Disclosure Package to the GCF Secretariat for further distribution to the Board and Active Observers and for posting on the GCF website. Within 180 days of the GCF Board approval of the Programme, AFC and the GCF Secretariat shall agree on a process to enable communication of any comments, including from the GCF Board members and Active Observers, on Category B projects relating to the Project Disclosure Package to the

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AFC and to take account of such comments in the finalization of such documents.

4. Pre-Construction Phase Compliance Monitoring. The borrower will implement the E&S management plans (e.g. EMPs, RAPs, SEPs) starting during procurement of works. The borrower will also ensure that measures in the ESMPs pertaining to construction is included in the contracts with contractors and subcontractors. During this time the borrowers will required to submit quarterly compliance reports to AFC. If necessary, AFC will conduct site visits to check on the implementation of the RAP, if any and ensure contracts with contractors include provisions for the implementation of construction-related measures of the ESMP. 5. Construction Phase Compliance Monitoring. During construction, the borrower will implement the construction-related measures in the ESMP and ensure that contractors comply with E&S provisions in the contract including compliance with occupational health and safety standards. During construction phase, the borrower is required to submit quarterly compliance report to the AFC. AFC will undertake semi-annual missions to conduct E&S audit and monitor project compliance with the ESMP, RAP, SEP and other plans. 6. Compliance Monitoring during Operation Phase. The sub-project proponents will be required to submit annual compliance reports to AFC. AFC shall review these reports and, if needed, conduct field validation.

The AFC as AE will have overall responsibility for the implementation of the E & S tools detailed in this ESMF on sub-projects selected under the Program. The overall process to be implemented for E&S management of each sub-project is depicted in the flowchart below.

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E&S Screening by AFC/AfDB

Assessments and preparations of Plans by the borrower

Review of ESIA by AFC/AfDB

Preconstruction Phase: Implementation of RAPs, Inclusion of relevant measures in the ESMP in the contractors’ contracts by the borrower; Compliance Monitoring by AFC/AfDB.

Construction Phase: Implementation of construction related measures in the ESMPs by the borrower; Compliance monitoring by AFC/AfDB.

Operations Phase: Implementation of operations phase ESMP measures by project operation/owner; Compliance Monitoring by AFC/AfDB.

Figure 8.1. ESMF Process

A detailed description of the approaches to be adopted in relation of E & S management at each stage of the overall sub-project cycle (i.e. project identification, preparation, appraisal, implementation and completion) is presented below.

8.3 Environmental and Social Identification and Preliminary Assessment (Environmental Screening and Scoping)

The Environmental and Social Screening will include, aside from the eligibility criteria, screening for sub-project categorization, the GCF ESS/IFC PSs triggered standards, AfDB ISSs, and specific E & S aspects in each sub-project. The E&S screening for the sub-project categorization will be done with reference to the checklist available in Annex 1A (E & S Screening: Categorisation) of this ESMF document. Ideally, the E&S safeguard screening shall occur during the project

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ESMF Nigeria Solar IPP Program (January 2019) preparation stage as a soon as a fairly accurate site location is known for the sub- project. The results of the screening process will help identify the scope of the ESA studies and timeframe required for obtaining the regulatory clearances (if any). The formulation of the sub-project specific terms of reference will be done based on the screening outputs highlighting E&S components that require detailed assessment during the ESIA stage. However, for this Program, E&S Screening will be undertaken after the 13 sub- projects have provided requested initial E&S information (Stage 2 in the selection process). It is anticipated that some of the sub-projects already have ESIAs and other safeguards documents based on the Nigerian country safeguards system and possible agencies other than AfDB and IFC. In such cases, E&S Screening to be undertaken under this ESMF, aside from screening out high risks (Category A) projects, will help identify remaining key issues that have not been adequately addressed in the ESIA as well as any remaining requirements with respect to the AfDB/IFC/GCF Standards.

8.4 Environmental and Social Impact Assessment (ESIA) Studies

For sub-projects that have not yet undergone an ESIA, the Program will use the AfDB’s ESA as the tool for ensuring that E&S aspects are considered during decision making – by influencing design to avoid /minimize, and where unavoidable mitigating the residual adverse impacts and/or enhancing positive impacts. The outline contents for each ESIA under the sub-project shall be in accordance with local legislation and also adhere to GCF, IFC and AfDB requirements. The Environmental Assessment studies will take into accounts the lender safeguard as well as the local requirements as outlined in the Nigerian Environmental legislations. The typical scope of work for the preparation of ESIA and related studies include the following: i. Defining the scope and contents of ESA study in line with the already completed screening, and the lender requirements ii. Obtaining information from primary or secondary sources regarding the current conditions of E&S features within the influence area of the sub- project (review of baseline).

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iii. Carrying out effective stakeholder consultations, including along the proposed sub-project impact zone. This shall also include landless laborers / marginalized communities whose livelihood may be impacted due to sub- project. iv. Identifying feasible alternatives for proposed layout changes, use of alternative technologies, etc. in close collaboration with the Design team. v. Identifying and estimating quantitatively (to the extent possible), key impacts and classify these for ease of understanding and determination of significance (by severity, duration, project phase, etc.) vi. Selecting measures that can help manage these impacts in cost effective manner – reduce the negative ones; and enhance positive ones and estimate the residual impacts, including those that may need further study. vii. Clarifying the institutional arrangements, any capacity building needs, and resource requirements including grievance redress mechanism and budget as part of the preparation of E&S management plan. Having identified the probable adverse impacts, the next step shall involve quantification of the impacts and develop E&S action plans to mitigate such adverse impacts. For sub-projects that already have ESIAs conducted under the Nigerian country system and other agencies, the borrower will fill in the gaps with respect to the requirements of the AfDB/IFC/GCF standards, including additional assessments, management plans, consultations, documentation and specific management measures, among others. These gaps and additional requirements will be identified during the E&S Screening and ESIA review to be undertaken by AFC.

8.5 Environmental and Social Management for the Program

8.5.1 Environmental and Social Management Plans (ESMP) Environmental and Social Management plans are the key tools to structure projects to ensure that E & S impact mitigation measures are effectively implemented during the construction, operational and decommissioning phases of the project. They are also a key tool to support the process of monitoring the environmental performance of a project throughout its lifecycle. The borrower is required to take into account the findings of the E&S assessment process and the outcomes of stakeholder engagement in order to develop and implement a programme of actions to address the identified E&S impacts and

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ESMF Nigeria Solar IPP Program (January 2019) issues of the project as well as to determine any performance improvement measures to meet the required E&S standards. Depending on the sub-project, the programme of actions may consist of a combination of documented operational policies, management systems, procedures, plans, practices and capital investments, collectively known as Environmental and Social Management Plans (“ESMP”). Components of such plans or programmes may include, for example, Environmental Management Plan (EMP), Stakeholder Engagement Plans, Biodiversity Action Plans, Emergency Response Plans, Resettlement Action Plans (RAP), Livelihood Restoration Frameworks (LRF), Indigenous Peoples’ Development Plans, Human Rights Action Plans, and/or other specific plans. These studies may be incorporated in the relevant E&S Assessment document (e.g. ESIA), constituting the ESMP of the report. Alternatively, these plans may be stand-alone documents. Where the sub-project does not meet the requirements of the Program by financial closure, despite efforts to comply during the project appraisal/review period , the borrower and AFC will in addition to the ESMP agree on an Environmental and Social Action Plan (ESAP) or a covenant, which spells out technically and financially feasible and cost-effective measures for the sub- project to achieve compliance with the safeguard requirements of the program within a time frame acceptable to the AFC. The ESAP is the key tool to structure projects to meet Program E&S requirements, as a key instrument for monitoring of the sub-project’s ongoing E&S performance. 8.5.2 Other Instruments for E&S Management A series of E&S instruments (templates) have been designed for use to systematize the E&S activities that will be developed along the project cycle, organize the processes, and keep records of the process. The management instruments identified for the different stages of the sub-project cycle are the: i. Environmental and Social Screening Form (ESSF) (Annex 1A); ii. Environmental and Social Monitoring Report (ESMR) (Annex 1B) ; iii. Environmental and Social Final Report (ESFR) (Annex IC). iv. Quarterly Environmental and Social Implementation reports (Annex 1C) The ESSF, ESMR, and ESFR are internal tools to be used in daily routine activities, while the Quarterly Implementation reports are external documents to be shared with AFC and AfDB. Annex 1 contains templates of these internal management instruments.

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The specific details of each of these reporting instruments are presented the table below.

Table 8.3. ESMP Reporting Instruments

Reporting Project Stage Description Instrument The ESSF is the first management instrument to be created by Environmental the developers during the first stage of the project cycle Identification and Social (Identification Stage) to identify the potential E&S risks, their Stage Screening Form categorization, and the level of E&S studies required by the sub-project to be conducted during the assessment stage. The report can be during works execution to follow up and Environmental monitor the implementation of the E&S measures identified in and Social the ESMPs. The ESMR contains basic information about the Monitoring periodic field visits, the persons who visited the sub-project, the Report E&S aspects observed during the site visit, and recommendations for the developers/contractor. The Client will be required to prepare Quarterly Implementation Quarterly Implementation reports on the E&S performance of the Stage Implementation project, including updates on the implementation of the E&S Reports Management and/or Action Plans. The reports will be submitted to the AFC and AfDB for review purposes. The ESFR is the fourth and final management instrument and Environmental can also be used once the sub-project’s works execution has and Social Final ended to verify compliance with the E&S measures agreed Report upon in the plans.

8.5.3 Studies for environmental and social management To comply with national environmental law and safeguards, all infrastructure projects (such as those associated with the Program) must go through an E&S assessment process.

8.5.4 Environmental and social studies required by national (Nigerian) legislations The ESIAs to be undertaken for each of the sub-projects within the Program will need to comply with all applicable E&S legislation in Nigeria.

8.5.5 Environmental and social studies required by the IFC Performance Standards and AfDB Operational Safeguards If policy or standards related to involuntary resettlement is triggered, a full Resettlement/Compensation Action Plan or Abbreviated Resettlement/Compensation Plan must be developed. The guidelines to prepare

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ESMF Nigeria Solar IPP Program (January 2019) these instruments are found in the RPF presented as an annex to this ESMF (Annex 3).

The program will not fund projects that would displace, alter or render inaccessible any cultural heritage site or structure. However, in case of chance archaeological and/or paleontological finds during construction, the project is required to develop and adopt, as part of its ESMP, a Chance Find Procedure based on local and national laws and regulations. A Draft Chance Find Procedure is included in Annex 1D.

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8.6 Environmental and Social Monitoring

This section of the ESMF outlines the approach to be used by AFC and AfDB for monitoring E&S performance on selected sub-projects considered in the Program. As the AE, AFC will have overall responsibility for the application for the risk management tools detailed in this ESMF to the selected sub-projects. The E & S tools to be applied will ultimately depend on the category assigned to the selected sub-project. The monitoring activities for each sub-project are determined on the basis of the E&S risks and impacts associated with the sub-projects identified during the E&S assessment. They may also reflect any significant stakeholder concerns and include an E&S project completion review or audit, where relevant. As a minimum, AFC reviews the Quarterly Implementation reports prepared by clients on the E&S performance of the sub-project, including updates on the implementation of the E&S Management and/or Action Plans. AFC may also, as necessary, undertake site visits to review the compliance of the project with agreed E&S requirements. Under the Program, with AFC as AE, external consultants may also be used to ensure compliance with the ESMF requirements, as well as the safeguard requirements of the AFC, GCF and AfDB. If the client fails to comply with its E&S commitments, as set out in the legal agreements, the AFC may agree with the client remedial measures to be taken by the client to achieve compliance. If the client fails to comply with the agreed remedial measures, AFC may take such action and/or exercise such remedies contained in the financing agreements that it deems appropriate. AFC will also review with the client any performance improvement opportunities related to sub-projects. On the other hand, monitoring arrangements for sub-projects proponents will be categorized into two categories. i. Firstly, routine E&S Monitoring reports which will be prepared during the works execution to gauge for implementation of agreed parameters/aspects in the mitigation plans. ii. Secondly, Quarterly Monitoring reports, will be used.

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ESMF Nigeria Solar IPP Program (January 2019) 9 STAKEHOLDER ENGAGEMENT AND GRIEVANCE MANAGEMENT

9.1 Stakeholders’ Consultation and Engagement The AFC and AfDB recognize the importance of open and transparent engagement between clients, workers, local communities directly affected by sub-projects and, where appropriate, other stakeholders as an essential element of Good International Practice and corporate citizenship. Such engagement is also a way of improving the E&S sustainability of sub-projects. In particular, effective community engagement, appropriate to the nature and scale of the sub-project, promotes sound and sustainable E&S performance and can lead to improved financial, social and environmental outcomes, together with enhanced community benefits. Stakeholder engagement is central to building strong, constructive and responsive relationships which are essential for the successful management of a sub-project’s E&S impacts and issues. In this Program, consultation shall be tailored to the language preferences of the affected communities, their decision-making process, and the needs of disadvantaged or vulnerable individuals or groups. The emphasis will be whether the affected communities are “in support of the sub-project” and not about whether there is a lack of opposition to a sub-project. Consultation will be expected to provide opportunities for affected communities to express their views on sub-project risks, impacts and mitigation and management measures, and shall allow the borrower or client to consider and respond to them in ways that facilitate the realization of community support. As part of the realization of the sub-projects under the Program, proponents will engage mechanisms to ensure Free, Prior and Informed Consultation (FPIC) has been conducted, and Informed Consultation has been enabled throughout the project cycle. FPIC and Informed Consultation shall be assessed through a number of factors and indicators including: i. sub-project’s proponent strategy, policy or principles of engagement. This will be detailed in the proponent’s ESMS ii. stakeholders’ identification and analysis iii. mechanism of community engagement iv. consultation FPIC v. information disclosure vi. informed participation

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ESMF Nigeria Solar IPP Program (January 2019) vii. vulnerable groups consultation and mitigation viii. grievance mechanism-structure, procedure, and application ix. feedback to the affected parties Consultation will be considered an ongoing process, not just as a step in the procedures for obtaining sub-project approval. It shall begin at the project identification stage, or at least at an early stage during project preparation, and shall continue throughout the life of the sub-project through to construction, operation and decommissioning. As the Bank recognizes local requirements in addressing E & S considerations, stakeholders’ consultation and engagement will also incorporate the requirements of consultations when undertaking the ESA studies as prescribed by Nigerian environmental legislation such as the EIA Act Cap E12 LFN of 2004. The results of the consultation should be adequately reflected in the project design and in the project documentation. The affected communities are given the opportunity to participate in key stages of project design and implementation. Therefore, stakeholders will be consulted to obtain their input into the preparation of the draft terms of reference of the E&S assessment and associated Environmental Assessment studies ie. Draft ESIA report and summary and the draft ESMP. Consultations will be conducted with the objective of ensuring that the sub-project has broad community support and that affected people endorse the proposed mitigation and management measures. When the borrower or client has identified vulnerable communities that would potentially be affected by the sub-project, the borrower/client engages in meaningful informed consultation and participation with the vulnerable communities, beginning as early as possible in the project cycle before the sub-project is submitted for project financing approval. The client, the AFC and the AfDB will make available to the public the ESIA documents. The procedures require the public disclosure of summaries in accordance with specified deadlines. The disclosure requirements for both the AFC and AfDB, which must be met by the sub-projects are presented in Section 3.7.

9.2 Consultations Related to Involuntary Displacement A RAP or Abbreviated Resettlement Action Plan (ARAP) should be prepared under a development approach that addresses the livelihoods and living standards of displaced persons, as well as compensation for loss of assets, using a participatory approach at all stages of project design and implementation. As highlighted before, the sub-project is expected to have minimal displacement

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ESMF Nigeria Solar IPP Program (January 2019) and thus only ARAP is anticipated to be used to address issues of involuntary displacement. Displaced persons and host communities should be meaningfully consulted early in the planning process and encouraged to participate in the planning and implementation of resettlement programs. The displaced persons should be informed about their options and rights pertaining to resettlement. They should be given genuine choices among technically and economically feasible resettlement alternatives. In this regard, particular attention should be paid to the location and scheduling of activities. In order for consultation to be meaningful, information about the proposed sub-project and the plans regarding resettlement and rehabilitation must be made available to local people and national civil society organizations in a timely manner and in a form and manner that is appropriate and understandable to local people. As well, careful attention should be given to the organization of meetings. The feasibility of holding separate women’s meetings and fair representation of female heads of households, in addition to mixed meetings, should be explored. Also, the way in which information is disseminated should be cautiously planned as levels of literacy and networking may differ along gender lines. Particular attention should be paid to the needs of disadvantaged groups among those displaced, especially those below the poverty line, the landless, the elderly, women and children, and ethnic, religious and linguistic minorities; including those without legal title to assets, female-headed households. Appropriate assistance must be provided to help these disadvantaged groups cope with the dislocation and to improve their status. Provision of health care services, particularly for pregnant women and infants, may be important during and after relocation to prevent increases in morbidity and mortality due to malnutrition, the psychological stress of being uprooted, and the increased risk of disease; AFC will support borrower’s efforts on sub-projects involving involuntary resettlement through: i. assistance to the executing agencies to adopt and operationalise objectives and principles of this policy; ii. assistance in formulating and implementing resettlement policies, laws, regulations, specific plans and strategies; and iii. direct financing of the investment costs of resettlement. AFC will also support the capacity building, as required of executing agencies to plan and implement involuntary resettlement in all sub-projects and provide technical assistance to strengthen the organizational, managerial and implementation capacity of agencies responsible for resettlement including

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ESMF Nigeria Solar IPP Program (January 2019) strengthening the environmental, social, economic and technical expertise of these agencies.

9.3 Program Grievance Redress Mechanism (GRM) The Program will adopt the AfDB’s approach to resolving grievances on sub- project interventions. This is described in Table 9.1 below:

Table .9.1. AfDB Grievance Redress Mechanism Approach

The AfDB defines project GRM as a systematic process for receiving, evaluating and facilitating resolution of affected people’s project-related concerns, complaints and grievances about the borrower’s/client’s social and environmental performance on a project. AfDB requires its clients to be aware of and respond to stakeholders’ concerns related to the project in a timely manner. For this purpose, the client will establish an effective grievance mechanism, process, or procedure to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the client’s E&S performance. In OS 1, the Bank requires the borrower/client to establish a “credible, independent and empowered local grievance and redress mechanism to receive, facilitate and follow up on the resolution of the affected people’s grievances and concerns regarding the E&S performance of the project. The local grievance mechanism needs to be sufficiently independent, empowered and accessible to the stakeholders at all times during project cycle and all responses to grievances shall be recorded and included in project supervision formats and reports.” Some Bank operations may inevitably have the potential to impact the local population’s well-being. The aim of a project GRM is, therefore, to enable people fearing or suffering adverse impacts to be able to be heard and assisted. People potentially or actually affected by a Bank-funded project need a trusted way to voice and resolve project related concerns and the project needs an effective way to address affected people’s concerns. The GRM provides a structured and managed way of allowing the concerns of affected people to be heard and addressed, including by the borrower’s/client’s project management staff and in certain circumstances, by Bank staff. The main advantages of establishing and maintaining an appropriate GRM linked to a Bank-funded project are: • Helping maintain good development conditions in the field, conducive to harmonious, sustainable development.

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• Minimising the risk of violent or otherwise destructive behaviors, and the associated economic and social costs. • Helping to protect the most vulnerable local groups and individuals. • Alleviating the risk of dispute or conflict escalation, such as cases being brought to the Bank’s Independent Review Mechanism. The process by which the GRM is designed should be integrated into the overall approach to project preparation as prescribed in the Bank’s ISS. The Bank ISS through its (IESIA) Guidelines Notes provides guidance on development and Implementation of GRM. It should also be included in the concrete actions required in the ESMP for Category 1 projects and on a case by case basis, for Category 2 projects that exhibit specific potential social tensions, in particular risks of mismanagement of compensation/resettlement schemes or the presence of particularly vulnerable groups in the project’s area of influence. a. Independent Review Mechanism (IRM) AfDB has also established its own accountability mechanism, the Independent Review Mechanism (IRM). The IRM seeks to assess whether a Bank approved project complies with relevant the AfDB’s ISS. The IRM makes itself accessible to any group (a minimum of 2 persons living in the project’s area of influence) actually or potentially negatively affected by a Bank-funded project. The IRM reports to the Bank’s Board of Directors and is thus independent of Bank management. So far, the IRM has received approximately six requests for intervention. Based on the World Bank’s Inspection Panel experience, dating back to 1993, which has processed 80 requests since then, the IRM is likely to intensify its activities during the coming years. The IRM has been set up by the Bank to achieve more transparency. It is also a costly mechanism to trigger. The establishment of local GRMs can help to alleviate the need for plaintiffs to resort to the IRM, while problem-solving can be more rapidly and cost-effectively done locally. The cultural context in which GRMs operate also helps to defuse complaints and to find appropriate and commensurate solutions. b. GRM at project level The GRM in the Program will be established under the guidance provided in the Bank’s ISS through its IESIA Guidelines Notes. The first step is to determine the primary goal of the GRM which would generally be to resolve specific grievances in a manner that meets both project management and community needs, but with important local variations. The scope of the grievances that may legitimately be brought forward by the communities and/or individuals affected shall be defined in advance. That scope will generally cover most, if not all, of the issues raised in a typical E&S Assessment: natural resources, pollution, cultural property, land acquisition, the income of resettled/displaced populations, the welfare of vulnerable groups, etc. The second step is to design the GRM by:

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1. Preparing a preliminary design. 2. Selecting ways and means to receive, register, assess and respond to grievances. 3. Select grievance resolution approaches. 4. Design a means to track and monitor grievances. 5. Develop the grievance mechanism infrastructure. 6. Review and refine the design.

At sub-project level, within the Program, the design of GRM may be done with the assistance of the specialized Independent consulting team as part of the ESIA or associated studies and assessments. The GRM shall be designed based on the following principles: • Involvement of individuals of mixed levels and functions from the entity (e.g., operations, environmental affairs, community relations, legal affairs, contractors). Staffing the design team from just one function such as community relations or human resources is unwise. • The inclusion of a balanced group of representatives from the community, representing the range of constituencies and demographics that will be using the grievance mechanism, while keeping the team small enough to be responsive. • GRM Relying upon clear terms of reference and a work plan that outlines team goals, roles, and responsibilities, level of decision-making authority, reporting lines, tasks, time frame, and products. • Making the use of multiple channels (e.g., face to face, phone conversation, mail, text or e-mail, message on a dedicated website), sensitive to cultural customs and traditional methods that may influence or impede the expression of grievances. • The existence of a central point of contact that will receive complaints and log them into a central register. • Existence and operation of designated complaint resolution staff. • Processes for acknowledging the receipt of a grievance and informing the complainant about the time frame in which a response can be expected.

9.4 Appointing members of Grievance Redress Committees (GRC) The Program will involve the formulation of a Grievance Redress Committee (GRC) at project level, i.e. GRM staff, for handling grievances. Generally, all project staff, the management staff of agencies involved in the project, and government administrators will take on grievance handling as a responsibility. The GRC members should be qualified, experienced, and competent personnel who

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ESMF Nigeria Solar IPP Program (January 2019) can win respect and confidence of the affected communities. It is also important to maintain a gender balance within the GRMs. Criteria for selecting members of GRCs could include the following: • Knowledge of the project, its objectives, and outcomes • Technical knowledge and expertise to understand project design and requirements; • Understanding of the social, economic, and cultural environments and the dynamics of the communities; • Capacity to absorb the issues dealt with and to contribute actively to decision-making processes; • Social recognition and standing; and • equitable representation of males and females. The GRC at project level shall constitute among other members, an officer from the Local Government Authority, Village or Community Heads, Project Coordinator, a member from a recognized Non-Government Organization and a community representative. The GRC shall have the right to request the project technical staff, and officers from relevant state or non-state institutions to attend the meetings and provide information. A complainant has the right to appear in person, to be accompanied by a community member, and/or to request to be represented by a community elder. GRCs shall be established at the project level to assure accessibility for Project Affected Persons.

9.5 Procedures, complaints channels and time frame for Grievance Redress Mechanisms As there is no ideal model or one‐size‐fits‐all approach to grievance resolution, the best solutions to conflicts are generally achieved through localized mechanisms that take account of the specific issues, cultural context, local customs, and project conditions and scale. The process by which a complaint will be accepted or rejected needs shall be carefully designed and shall maximise interactivity and cultural sensitivity. The acceptance/rejection of a complaint will go through a discussion stage where the plaintiff and the GRM staff interact on the grounds and motives of the complaint, after which the plaintiff should clearly and transparently be told whether or not the complaint is eligible and will be processed. The acceptance/rejection of the complaint shall be based on objective criteria that are posted by the GRC, including a written copy displayed in the public access area of the GRM in an appropriate language. The processing of the complaint, if accepted should go through various phases:

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• Filing of the complaint and labeling with an identification code communicated immediately to the plaintiff. • Assessment of the complaint (including severity of the risk/impact). • Formulation of the response. Selection of the grievance resolution approach is a key. There are four general approaches to choose from: • The project’s management proposes a solution. • The community and the project’s management decide together. • The project’s management and the community defer to a third party to decide. • The project’s management and the community utilize traditional or customary practices to reach a solution. AfDB’s ISS recommends the application of a “Decide together” approach that is usually the most accessible, natural and unthreatening ways for communities and a project’s management to resolve differences. With the potential to resolve perhaps the majority of all grievances, “decide together” should be the center- piece of any grievance mechanism’s resolution options. In its simplest form, a grievance mechanism can be broken down into the following primary components: 1. Receive and register a complaint. 2. Screen and validate the complaint (based on the nature and type of a complaint). 3. Formulate a response. 4. Select a resolution approach, based on consultation with affected person/group. 5. Implement the approach. 6. Settle the issues. 7. Track and evaluate results. 8. Learn from the experience and communicate back to all parties involved. The time for the Grievance Redress Committees to be held shall be agreed and documented, depending on the nature and severity of the complaint. A number of mechanisms will be available to aggrieved parties to access redress. These shall include institutions specific (internal) to a project and set up from its inception or others that might have emerged over time in response to needs identified while the project evolved. Other institutions which are already established within a country’s judicial, administrative, and/or political systems and exist outside a project shall also be used. These include the government

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ESMF Nigeria Solar IPP Program (January 2019) bureaucracy; judicial institutions; and political institutions such as Local Government Authorities, etc. In addition, the Bank itself sometimes shall provide a forum for grievance redress. GRMs shall include avenues for resolving conflicts between APs or other stakeholders and can provide information sought by the public on the project. The channels of presenting complaints could include the presentation of complaints via third parties (e.g., village elites/traditional leaders, community‐ based organizations, lawyers, non-government organizations [NGOs], etc.); face‐ to‐face meetings; facsimile, telephone, and email communications; written complaints; etc.

The sub‐projects to be implemented under the Program are mainly in the northern part of Nigeria with potentially similar E&S contexts. It is therefore expected that as part of the implementation of sub-projects within the Program, simpler means of addressing complaints, such as through community meetings, community liaison personnel and suggestion boxes allowing for anonymity shall also be used along with other recommended channels. If the complainant is not satisfied, the complainant will have to appeal to the National Project Coordinator under AFC’s AE status.

9.6 Stakeholder Engagement Activities during the preparation of the ESMF 9.6.1 Stakeholders Consulted As part of the preparation of the ESMF, stakeholder engagement activities were undertaken with a number of stakeholders at Federal, Regional and local level. Consultation was also undertaken with a number of Civil Society Organizations (CSO). The CSOs were purposively selected based on their core areas of interest in renewable energy and positive climate action in Northern Nigeria. A summary of the stakeholders consulted is provided in Table .9.22 below.

Table .9.2. Categories of stakeholders consulted during the preparation of the ESMF

Objective of Stakeholder Mandate Consultation Government Agencies Verify the status of the 13 projects and take into Federal Ministry of Environment, Drive E&S process in Nigeria and consideration the E& S 1 FMEnv grants approvals issues of the Solar IPP program from FMEnv’s view.

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Objective of Stakeholder Mandate Consultation State Ministry of Environments Verify the status of the 13 (only a few with known contact projects and take into details were approached. There consideration the E& S 2 Participate in the E&S process as is the need to undertake more issues of the Solar IPP stakeholders at state level detailed sub-project specific program from State consultation) Ministry of Environment’s 3 Local Government Councils view. Participate and Supervise the Environment Unit (Transmission Identify E&S issues from 4 E&S process of power projects in Company of Nigeria) TCN’s perspective Nigeria Renewable and rural power Support the development of RE Identify E&S issues from 5 access Department (Ministry of and access to power in rural the ministry’s Power, works and Housing) areas perspective Carry out the Functions of Enforcement of Technical Standards and Regulations, Technical Inspection, Testing and Certification of All Categories of Electrical Installations, Electricity Meters Identify E&S issues as well Nigeria Electricity Management 6 and Instruments to ensure the as safety concerns from Services Agency Efficient Production and Delivery the view of the agency of Safe, Reliable and Sustainable Electricity Power Supply and Guarantee safety of Lives and Property in the Nigerian Electricity Supply Industry Civil Society Organisations Development of the energy International Centre for Energy 7 sector with strong premium on Environment and Development environment and development Promote government and Based on the mandate 8 Nigeria Climate Action Network individual action to combat of these CSOs, identify climate change. and take into Alliance for Civil Society Encourage the development of cognizance E&S 9 organisations for clean energy clean energy to cut down concern that may arise access emissions from project and sub- Provision of sustainable projects livelihood for women and girls, implementation. 10 Empower to Empower especially those in the rural areas Renewable Energy Association Develop the Renewable Energy 11 of Nigeria Sector

Specific consultation was not undertaken with PAPs at project level because this will be done as part of the specific ESIAs of the sub-projects. In addition, avoiding consultations with PAPs from any one site of the potential sub-projects will eliminate bias.

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9.6.2 Summary of the outcomes of the engagements As part of the stakeholder engagement process, consultation was undertaken with the entities set out below.

Table 9.3. Specific details of stakeholder engagements undertaken

S/N Entity date Person Contacted Designation 04/12/2018 Mr. J.A Alonge Director EA Department Federal Ministry of 1 03/12/2018 Mr. Abass Suleiman Deputy Director EIA Environment (FMEnv) 05/12/2018 Mrs Odetoro Deputy Director Jigawa State Ministry 2 03/12/2018 Alhaji Aliyu Hadejia Assistant Director of Environment Dutse Local Council, 3 03/12/2018 Ayuba Ahmed Director of Works Jigawa State 4 Invest Jigawa 04/12/2018 Mrs Jamila Farouk Director Kogi State Ministry of Chief Environmental 5 04/12/2018 Mr. Samson Benu Environment Officer Mohammed Bochi Director Agric & 6 Lokoja Local Council 04/12/2018 Lawal Environment Kogi Investment and 7 04/12/2018 Mrs Obadaki Ag. Managing Director Properties Ltd Kaduna 8 Environmental 04/12/2018 Dr Yusuf Rigasa Director General Protection Agency Nigerian Electricity Management 9 04/12/2018 Mr. John Obajimi Health and Safety Officer Services Agency

Transmission 10 Company of Nigeria 05/12/2018 Mrs C.I.B Sako E&S Specialist

Renewable & Rural Power Access Department, Federal Engr. Ajeigbe A. 11 05/12/2018 Assistant Director Ministry of Power, Jacob Works and Housing

Empower to 12 05/12/2108 Ms. Joy Ini Program Coordinator Empower

A summary of the outcomes of the engagements undertaken with each of the stakeholders including dates and communication means is presented Table 9. below.

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Table 9.4. Summary of consultations undertaken during the development of the ESMF

Person Means of S/N Entity date Contacted Communication E&S Issues of concern

Face-Face • Land acquisition for the sub-project, issues of Mr. J.A Alonge 04/12/2018 meeting compensation and livelihood restoration, the need to engage the PAPs from project design and site Mr. Abass Face-Face selection. 03/12/2018 Suleiman meeting • Allowing PAPs to participate in determination of mitigation for social issues through consultations. Federal • Waste Management should be considered from Ministry of project conception. 1 Environment • Management of hazardous wastes should be (FMEnv) Face-Face considered • There is need for awareness across board. 05/12/2018 Mrs Odetoro meeting • Implementation of Extended Producers Responsibility and Individual Producer responsibilities. • The role of regulators at National, State and Local Levels should be considered and Capacity building for monitoring and support should be considered for agencies regulating the sub-projects. Jigawa State • Main issue has to do with land take and proper Alhaji Aliyu Telephone 2 Ministry of 03/12/2018 identification of land owners as well as transparent Hadejia Conversation Environment system of compensation Dutse Local Council, Telephone 3 03/12/2018 Ayuba Ahmed • Compensation for land taken for the sub-project Jigawa State Conversation

• Involvement of traditional institution and adequate Mrs Jamila Telephone 4 Invest Jigawa 04/12/2018 consultation with PAPs at project design state to avoid Farouk Conversation friction over land take for sub-projects Kogi State • Issues surrounding land acquisition for the projects Mr. Samson Telephone 5 Ministry of 04/12/2018 should be handled by project developers completely Benu Conversation Environment before government allocation and granting of title • Issues surrounding the involvement of local council in Lokoja Local Mohammed Telephone compensation for land as well as involvement of local 6 04/12/2018 Council Bochi Lawal Conversation government in E&S monitoring because they are the closest tier of government to the sub-projects

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Person Means of S/N Entity date Contacted Communication E&S Issues of concern

Kogi Investment Telephone • Loss of farmland should be properly compensated and 7 04/12/2018 Mrs Obadaki and conversation alternatives provided Properties Ltd

Kaduna • Environmental concerns like pollution should be Telephone 8 Environmental 04/12/2018 Dr Yusuf Rigasa considered in the choice of materials most especially Conversation Protection the PV modules as well as transformer oil. Agency Nigerian Electricity • Considerations of Health and Safety in project design Management Mr. John Face to Face and implementation as well as in choice of electrical 9 04/12/2018 Services Obajimi Meeting installation. Agency • Ensuring that safety standard codes are adhered to.

Transmission • Adherence to Environmental issues of concerns as Face to Face Company of 05/12/2018 Mrs C.I.B Sako documented in the SESA that is being produced by Meeting Nigeria TCN Renewable & Rural Power Access Department, Engr. Ajeigbe Face to Face • Conduct of Environmental Impact Assessment for the 10 Federal 05/12/2018 A. Jacob Meeting projects should be made compulsory. Ministry of Power, Works and Housing

• Women should be considered in sub-projects Empower to Telephone 11 05/12/2108 Ms. Joy Ini implementation and CSR should from sub-projects Empower Conversation focus on women development

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10 ESMF IMPLEMENTATION AND MANAGEMENT

10.1 Institutional Arrangements for ESMF Implementation AFC will be responsible for the overall oversight of the Program implementation and will report to GCF per the terms agreed under the Accreditation Master Agreement (AMA) and to be agreed the Funded Activity Agreement (FAA). For managing the GCF resources, AFC will maintain a separate account for the GCF funds and independently administer the funds. It is envisaged that the AFC will be the direct lender to the sub-projects under its capacity as an AE, and under one Facility Agreement (alongside AfDB and other lenders) to each respective sub- project. Sub-projects within the Program will be considered for funding based on defined selection criteria. AFC and AfDB will apply their credit evaluation, due diligence and approval procedures in appraising potential clients, and only those sub- projects qualified under agreed internal criteria will be eligible for investment under this framework.

10.2 Roles and Responsibilities for Managing Environmental and Social Requirements 10.2.1 Sub-project proponent’s role and responsibilities For sub-projects that will be ultimately be selected for funding under the Program, AFC will expect sub-project proponents to manage the E&S issues associated with the sub-projects to meet the safeguard requirements detailed in this ESMF throughout the entire project lifecycle. It is also the client’s responsibility to ensure that adequate information is provided so that the AFC (and AfDB) can undertake an E&S assessment in accordance with their respective safeguard requirements. The client may be required to commission appropriate E&S studies and conduct stakeholder engagement and cover the costs of these. The client is also expected to allow AFC and AfDB representatives and independent consultants to access sub-project facilities and records. 10.2.2 AFC and AfDB’s role and responsibilities Implementation teams for the Program will be constituted within AFC and other financiers to the due diligence and execution of individual sub-projects, as well as the management of the overall Program.

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The AFC team will be mobilized from a pool of investment officers (from within the power sector team), portfolio managers and risk assessment officers (inclusive of an E&S specialist) the same will be done by other senior lenders.

10.3 Institutional arrangements for the implementation of the ESMF For the implementation of the ESMF, institutional arrangements will be required. The organizational framework for implementing the ESMF measures are set out below in terms of defined roles and responsibilities. 10.3.1 Roles and responsibilities of Main Implementing Entity The key players are the FMEnv, state governments and local authorities, the SPV developers, the affected communities, and the independent advisor hired by the SPV developers to conduct annual E&S review. They each have different roles and responsibilities: • Setting applicable E&S requirements (E&S requirement setting) • Screening for E&S risk and impacts (E&S screening) • E&S due diligence and risk management (E&S due diligence) • E&S monitoring • E&S reporting • Independent E&S audit The functions of the individual entities that are likely to be involved in the implementation of the ESMP are summarized in Table 10.1.

Table 10.1. Roles and Responsibilities of the Main Implementing entities

Entity Description The unit will be the main implementing entity within AFC and AfDB. They will provide overall coordination of the sub-project and lead in the implementation of the program components, which will include overall responsibility for safeguards due diligence, and compliance monitoring. The Project Further, PMU will be responsible for the overall coordination of the sub-project Coordination and implementation and oversight. Management Unit (PMU) The AFC and AFC will ensure that as part of the ESMS to be developed by the SPV developers for sub-projects considered under the program, E&S safeguard specialists (including E & S Managers and Community Liaison Officers) are included as part of the management team of the SPV. The specific roles of the E & S resources in the SPVs of the sub-projects will include the following:

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Entity Description i. Overall oversight of the E&S risk assessment, management, and monitoring processes in line with this ESMF, for each component of the sub-project; ii. Putting in place and implementing a reporting system from the SPV entities to PMU on implementation of E&S requirements; iii. Engaging an independent E&S auditor to ensure that private sector entities are implementing E&S requirements set out in the ESMF consistently; iv. Assuming responsibility for stakeholders’ engagement, maintaining adequate stakeholder engagement and grievance redress mechanism and ensuring that private sector entities maintain the same at their level. SPVs will establish a communication line between its site offices and ensure project success on this aspect. It will also facilitate liaisons with CBOs, CSO, NGOs and projected affected communities, particularly women; v. Designing, organizing and implementing capacity building programs for all relevant stakeholders associated with the specific sub-project. vi. Defining, jointly with the respective states and local governments, the project priorities based on technical and policy development priorities (this will include gender and vulnerability issues); vii. Resolving in consultation with the Provincial/local governments challenges requiring high level intervention facing the sub-project; and viii. Monitoring the implementation of the sub-project in consultation with the states and local governments. The developer (SPV) will plan and conduct the construction and is responsible for complying with all relevant E&S requirements. Its responsibilities include: i. E&S requirement setting: SPV developers will incorporate application E&S requirements in their institutional ESMS, that include national and regional laws/policies and any requirement lenders. ii. E&S screening: solar power project developers will: a. Conduct the actual E&S screening based on all relevant requirements, employing or hiring qualified E&S specialists, and provide sufficient resources for such activities. b. Determine key E&S risk and impacts of individual IPP sub-projects Solar Power Plant and assign E&S category. Developers (SPVs) iii. E&S due diligence: solar power SPV developers will prepare and integrate into project design the SEMP, the Stakeholder Engagement Plan (SEP) and grievance mechanism. iv. E&S monitoring: solar IPP developers will conduct self-monitoring activities in line with their ESMS and main all monitoring records properly. v. E&S reporting: IPP solar plant developers will a. Prepare annual E&S reports lenders reporting requirements; b. Report any incident or accidents within several days of occurrence, including any E&S fines, litigation, or other administrative/legal issues. vi. E&S audit: solar IPP developers will provide all relevant reports and documents to the independent E&S auditors in a timely manner upon request. The implementing They implement, monitor and follow-up the E&S measures of the sub-projects. agencies of the sub- They also report on the execution of such measures.

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Entity Description projects (AFC and AfDB) FMEnv reviews and approves the environmental classification of sub-projects Federal Ministry of and approves the impact studies and the ESMPs of the sub-projects and Environment (FMEnv) participates in the external monitoring of implementation. – National NESREA is charged with the responsibility of enforcing all environmental laws, Environmental guidelines, policies, standards and regulations in Nigeria. It also has the Standards and responsibility to enforce compliance with provisions of international Regulations agreements, protocols, conventions and treaties on the environment to Enforcement which Nigeria is a party. Agency (NESREA) EPC and O&M They implement the (contractual) mitigation measures as well as the E&S Contractors clauses with the periodic production of reports on the implementation of these measures. Local and regional They participate in project implementation through the pre-selection of the authorities (Federal sub-project sites, the identification of PAPs, the registration of complaints, Authorities): and the proximity follow-up of actions on the ground. Other sector Institutions/departments/Agencies related with community and De-concentrated Natural resources such Land, Forestry, Water, Gender/Social protection): technical services they support the implementation of E&S measures on the ground in their respective fields and provide support in monitoring and reporting. Associations, NGOs They support the implementation of the communication plan and the and local prevention of conflicts. populations

10.4 Training and Capacity Strengthening Plan Based on the capacity assessment of the relevant Nigerian Federal and State level MDAs, Civil Society Organizations, as well as other stakeholders carried out during consultations, effective delivery of the sub-projects in relation to the implementation and monitoring of the E & S risk mitigation measures throughout the lifecycle of sub-projects may be hampered by limited technical skills and resource constraints. Institutional barriers to effective delivery that are anticipated include: i. Limited knowledge on E&S Safeguards Systems; ii. Limited knowledge on E&S issues relating to the Energy sector; iii. Limited knowledge on ESMF implementation as well as project-specific ESIAs and ESMPs especially during construction of sub-projects; iv. Limited knowledge on Gender and vulnerability issues; v. Limited knowledge of participatory governance and stakeholder’s engagement. For effective implementation of the ESMF, there will be need for technical capacity in the human resource base of implementing institutions as well as logistical facilitation. Implementers need to identify and understand the E&S issues as concerns the implementation of sub-projects. Thus, to strengthen the

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ESMF Nigeria Solar IPP Program (January 2019) respective roles and enhance robust collaboration with the relevant stakeholders, the following areas for capacity building have been identified as deserving attention for effective implementation of the ESMF. The specific areas for effective training and institutional capacity needs are given in Table 10.2 below. An indication of the anticipated costs for the implementation of the capacity building program is also included in the table.

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Table 10.2. Proposed Training Programs for ESMF Implementation

Training to Training Form of be Training Training Description Participants Duration When Organizin Training conducte Costs USD g Agency d by who Federal and State Ministries of Environment, During AfDB’s Integrated Safeguard Ministry of Power (Dept of E & S 1 project System. Training on Operational Renewable & Rural Power Worksho Safeguard Working prepara AfDB/AFC 3,000 Safeguards Policies triggered Assess), TCN, NESREA and p Consultan day tory other project affiliated t stage MDAs in host States, SPVs, CSOs Federal and State Ministries of Environment, Gender Considerations (Equity, During Ministry of Power (Dept of E & S Environmental, Social and other ½ project Renewable & Rural Power Worksho Safeguard sub-project specific issues of Working prepara AfDB/AFC 2,000 Assess), TCN, NESREA and p Consultan concern affecting Women, Children day tory other project affiliated t and other Vulnerable groups) stage MDAs in host States, SPVs, CSOs Environment and Social Assessment: E & S Process, E & S Considerations in sub-project activities, Federal and State Environmental components Ministries of Environment, During affected during construction and Ministry of Power (Dept of E & S 1 project operation stages; Renewable & Rural Power Worksho Safeguard Working prepara AfDB/AFC 3,000 Environmental management and Assess), TCN, NESREA and p Consultan day tory Best practice; other project affiliated t stage Stakeholder participation MDAs in host States, SPVs, Project Screening & Scoping CSOs Physical Cultural Resources, SESA, HIA e.t.c

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Training to Training Form of be Training Training Description Participants Duration When Organizin Training conducte Costs USD g Agency d by who

Federal and State Ministries of Environment, Environmental due diligence: During Ministry of Power (Dept of ESMF/ESIA/ESMP Implementation, 1 project E & S Renewable & Rural Power Worksho Monitoring, Evaluation and Working prepara Consultan AfDB/AFC 3,000 Assess), TCN, NESREA and p Reporting during construction of day tory t other project affiliated sub-projects, stage MDAs in host States, SPVs, CSOs

Occupational Health and Safety(OHS) Leadership Management Safety performance assessment Hazard Analysis and Control During Hazard Communication Program Federal and State project Effective Accident Investigation Ministries of Environment, initiation Conducting Health and Safety Ministry of Power (Dept of 1 stage HSE Worksho Audits Renewable & Rural Power Working (Before Consultan AfDB/AFC 4,000 p Job Hazard Analysis Assess), TCN, other project day comme t Occupational Health Risk affiliated MDAs in host ncemen Assessment States, SPVs, CSOs t of civil Work Stress Risk Assessment works) Electrical safety Fire Safety Fall protection Plan Fleet Safety Management Total 15,000 * Training cost is tentative, the actual training cost will be dependent on training locations, prevailing exchange rate

Actual costs will also depend on site selection as well as their locations which will help to focus more on specific issues and Gender specificity based on sub-project locations.

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ESMF Nigeria Solar IPP Program (January 2019) ANNEXES

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ESMF Nigeria Solar IPP Program (January 2019) 11 ANNEX 1. TEMPLATES FOR ENVIRONMENTAL AND SOCIAL MANAGEMENT INSTRUMENTS • ANNEX 1A. Environmental and Social Screening Form • ANNEX 1B. Environmental and Social Monitoring Report • ANNEX 1C. Environmental and Social Final Report • ANNEX 1D. Chance Find Procedure

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ESMF Nigeria Solar IPP Program (January 2019) ANNEX 1A. E&S Screening Form

PART A: GENERAL INFORMATION Project Name Estimated Cost ( ) Project Site Project Objectives Proposed Main Project Activities Name of Evaluator/s Date of Field Appraisal

PART B: BRIEF DESCRIPTION OF THE PROPOSED ACTIVITIES

Provide information on the type and scale of the construction/rehabilitation activity (e.g., area, land required and approximate size of structures)

Provide information on the construction activities including support/ancillary structures and activities required to build them, e.g., need to quarry or excavate borrow materials, water source, access roads, etc.

Describe how the construction/rehabilitation activities will be carried out. Include a description of support/activities and resources required for the construction/rehabilitation.

PART C: E&S ELIGIBILITY CRITERIA

Criterion Yes or No 1. Would the project displace or involve relocation of more than 50 homes or a population of 200 or more? 2. Would the project encroach or be located inside a protected area of natural habitat? 3. Would the project displace, modify or render inaccessible a Cultural Heritage site or structure? 4. Would the project be located in the territory of any historically underserved traditional ethnic community or indigenous people (as defined by World Bank OP 4.10) territory, but that the project would not benefit them in terms of access to electricity or in terms or in terms of some other plans? 5. Is the project assessed to be Category A based on Part E of this form?

If the answer to at least one of these questions is yes, then the sub-project would not qualify for funding under the Program. (The sub-project may be returned to the proponent for modification to meet with the criteria.)

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PART D: SCREENING FORM FOR IDENTIFICATION OF AFDB OSS AND IFC PS TRIGGERED AND IDENTIFICATION OF APPROPRIATE SAFEGUARD INSTRUMENT

AfDB OSs/IFC Triggered If YES Safeguard Performance (Reason/details) Instrument/Docume Standard YES NO nt Needed PS1/OS1- Environmental Assessment and Mgt of ES Risks and Impacts PS2/OS5 – Labor and Working Conditions PS3/OS4 – Resource Efficiency and Pollution PS4/OS5 - Community Health, Safety and Security PS5/OS2 – Land Acquisition and Involuntary Resettlement PS6/OS3 - Biodiveristy Conservation and Sustainable Mgt of Living Natural Res. PS7/OS1 – Indigenous People PS8/OS Cultural Heritage

PART E. RISK CATEGORIZATION

Check the one that applies If answer is yes,

Would the project involve: activities with potential significant Project is Category A: adverse environmental and/or social risks and impacts that, Not qualified for funding individually or cumulatively, are diverse, irreversible, or under the program unprecedented?

Would the project involve: activities with potential limited adverse The project is Category environmental and/or social risks and impacts that individually or B - cumulatively, are few, generally site-specific, largely reversible, and Safeguards Instruments readily addressed through mitigation measures? should be disclosed for at least 30 days before approval. Would the project involve: only activities with minimal or no Category C adverse environmental and/or social risks and/or impacts?

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Guidance: The guidance for sub-project categorization and triggering OSs is available in the AfDB ESAP document, Category 1, 2, 3 is equivalent to Category A, B, C respectively. E&S. Alternatively, one can also refer to IFCs Note on E&S Categorization, Jan 1, 2012.)

Conclusion and Safeguards Instruments Required

The sub-project is classified as a Category ______project as per AfDB’s ESAP, and the following safeguard instruments will be prepared: 1. ______2. ______3. ______4. ______

PART F: ENVIRONMENTAL AND SOCIAL BASELINE INFORMATION OF THE SUB-PROJECT SITE BRIEF DESCRIPTION

Category of Baseline Information Description GEOGRAPHICAL LOCATION * Name of the Area * Proposed location of the project (Include a sitemap of at least 1:10,000 scale / or coordinates from GPS)

LAND RESOURCES * Topography and Geology of the area * Soils of the area * Main land uses and economic activities

WATER RESOURCES * Surface water resources (e.g., rivers, lakes, etc.) quantity and Quality

CLIMATE * Temperature * Rainfall

SOCIAL * Number of people potentially impacted * Type and magnitude of impacts (i.e., impact on land, structures, crops, standard of living) * Socio-economic overview of persons impacted

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ESMF Nigeria Solar IPP Program (January 2019) ANNEX 1B. Environmental and Social Monitoring Report

Project Name………………………………………………………………………… E & S Category…………………………… Project Manager: ………………………………………………………………… Signature……………………………………. Evaluator (E&S Expert): ………………………………………………………… Signature……………………………………

1. Environmental and Social Effects Summary of the environmental effects of the sub-project predicted during project planning.

2. Environmental and Social Effects Observed in the Field Visit Summary of the environmental effects observed in the field visit: - Predicted effects and nature of observation; and - Unpredicted effects and nature of observation.

List of people participating in the field visit:

Name Institution Charge Sign

3. Compliance with the Environmental and Social Specification Assessment of how the sub-project is complying with environmental design specifications, including environmental protection and control, mitigation, and reimbursement and compensation measures if any. 4. Results of the Field Visit Provide results of the evaluation of specific biophysical and socioeconomic effects, including deviations from baseline values if available. 5. Conclusions and Recommendations for Project Operation Recommended adjustments to sub-project operations if any, including rationale for the recommendations.

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6. Conclusions and Recommendations for Monitoring Program Recommended adjustments to the monitoring program, if any, including rationale for recommendations. 1. Other Observations, Recommendations, and Conclusions

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ESMF Nigeria Solar IPP Program (January 2019) ANNEX 1C. Environmental and Social Final Report

1. Activities Realized On (date) ______, the final review of the E&S aspects corresponding to the activity ______was conducted to verify fulfilment of the mitigation measures proposed for the sub-project, as well as to ascertain if other negative impacts have appeared during the period in which the activity took place. There was content the commission integrated by the following persons:

Name Institution Charge Sign

2. Background Capture case record including dates, a brief narration of the problem and recommendations from previous opportunities. 3. Results of the Examination Describe in detail the conditions in which the mitigation measures were developed, the grade of fulfilment, and current state, explaining when necessary reasons why measures have not been completed. Completing the table below will help visualize this information.

Triggered Time still needed to NO. Mitigation Measures Observations accomplish measures YES NO %

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3. Conclusions Based on the examination, prepare conclusions regarding fulfilment of the mitigation measures and recommendations.

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ESMF Nigeria Solar IPP Program (January 2019) ANNEX 1D: Chance Find Procedure The Chance Find Procedure is a step by step procedure which outlines what needs to be done when sub-projects come across archaeological sites, historical sites remains and objects, including graveyards and/when individual graves during excavation or construction. This procedure relates to OS1 requirement and IFC PS 8 on cultural heritage which addresses physical, cultural resources (PCR) which are defined as movable or immovable objects, sites, structures that have archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Physical, cultural resources may be located in urban or rural settings and may be above or below the ground. Contracts for civil works involving excavations should normally incorporate procedures for dealing with situations in which buried physical and cultural resources (PCR) are found unexpectedly. The final form of these procedures will depend upon the local regulatory environment, including any chance find procedures already incorporated in legislation dealing with antiquities or archaeology. Note: The general guidance provided applies when there will be an archaeologist on call. In exceptional situations in which excavations are being carried out in PCR-rich areas such as a United Nations Educational, Scientific and Cultural Organization World Heritage site, there will normally be an archaeologist on site to monitor the excavations and make decisions. Such cases will require a modified version of these procedures, to be agreed upon with the cultural authorities. A chance find procedure commonly contain the following elements. 1. PCR Definition

This section should define the types of PCR covered by the procedures. In some cases, the chance find procedure is confined to archaeological finds; more commonly it covers all types of PCR. In the absence of any other definition from the local cultural authorities, the following definition could be used: “movable or immovable objects, sites, structures or groups of structures having archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance.” 2. Ownership

This paragraph should state the identity of the owner of the artifacts found. Depending on the circumstances, the owner could typically be the state, the

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ESMF Nigeria Solar IPP Program (January 2019) government, a religious institution, the landowner, or it could be left for later determination by the concerned authorities. 3. Recognition

This is the most difficult aspect to cover. As noted above, in PCR-sensitive areas, the procedure may require the contractor to be accompanied by a specialist. In other cases, the procedures may not specify how the contractor will recognize a PCR and a clause may be requested by the contractor disclaiming liability. 4. Procedure upon Discovery

Suspension of Work

This paragraph may state that if a PCR is found during execution of the works, the contractor shall cease activity. However, it should specify whether all works should cease, or only the works immediately involved in the discovery, or, in some cases where large buried structures may be expected, all works may be stopped within a specified distance (for example, 50 meters) of the discovery. This issue should be informed by a qualified archaeologist. After stopping work, the contractor must immediately report the discovery to the resident engineer. The contractor may not be entitled to claim compensation for work suspension during this period. The resident engineer may be entitled to suspend work and request that the contractor provide excavations at the contractor’s expense if the engineer thinks that a discovery was made and not reported. Demarcation of the Discovery Site

With the approval of the resident engineer, the contractor is then required to temporarily demarcate and limit access to the site. Non-suspension of Work

The procedure upon discovery may help the resident engineer decide whether the PCR can be removed and work can continue, for example, in cases where the find is one coin. Chance Find Report

The contractor should then, at the request of the resident engineer, and within a specified time period, complete a Chance Find Report, recording: • Date and time of discovery; • Location of the discovery;

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• Description of the PCR; • Estimated weight and dimensions of the PCR; and • Temporary protection implemented. The Chance Find Report should be submitted to the resident engineer and other concerned parties as agreed upon with the cultural authority and in accordance with national legislation. The resident engineer, or other party as agreed, is required to inform the cultural authority accordingly. Arrival and Actions of Cultural Authority

The cultural authority ensures that a representative will arrive at the discovery site within an agreed upon time, such as 24 hours and determines the action to be taken. Such actions may include, but are not limited to: • Removal of PCR deemed to be significant; • Execution of further excavation within a specified distance of the discovery point; or • Extension or reduction of the area demarcated by the contractor. These actions should be taken within a specified period, for example, seven days. If the cultural authority fails to arrive within the stipulated period (for example, 24 hours), the resident engineer may have the authority to extend the period by a further stipulated time. If the cultural authority fails to arrive after the extension period, the resident engineer may have the authority to instruct the contractor to remove the PCR or undertake other mitigating measures and resume work. Such additional works can be charged to the contract. However, the contractor may not be entitled to claim compensation for work suspension during this period. Further Suspension of Work

During this seven-day period, the cultural authority may be entitled to request the temporary suspension of the work at or in the vicinity of the discovery site for an additional period of up to, for example, 30 days. The contractor may or may not be entitled to claim compensation for work suspension during this period. However, the contractor will be entitled to establish an agreement with the cultural authority for additional services or resources during this further period under a separate contract with the cultural authority.

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ESMF Nigeria Solar IPP Program (January 2019)

12 ANNEX 2: GENERIC E & S MITIGATION AND ENHANCEMENT MEASURES TO BE CONSIDERED FOR SUB-PROJECTS

Provision of compensation to project affected people (PAP) based on replacement cost value of lost assets (i.e. no depreciation).

Provision of resettlement/relocation option for those whose entire homes are displaced.

Provides for differentiated treatment/assistance to vulnerable PAPs. Construction Biophysical Soils, Run-off and flooding Installation of sewage Phase Environment • Pollution of groundwater treatment to meet required from discharges and standards; hygiene training for accidental releases during workforce. construction of solar farm, access roads and transmission lines. • Interruption of drainage Minimization of cleared areas patterns and lack of water and soil disturbance, with table replenishment, as a revegetation as soon as result of ground clearance feasible, with native species and earthworks Early installation and regular maintenance of drainage and diversion structures, silt traps etc.; drainage outlets to discharge into vegetated

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor areas if possible; vegetation along watercourses and drainage lines to be retained if possible Avoidance of areas liable to flooding, slope instability and water crossing where possible Retention of top soil for restoration (including tilling and revegetation) as soon as practicable. Pollution of soils and water Installation of sewage • Drainage of construction treatment to meet required site /camp sewage standards; hygiene training for effluent polluting workforce. watercourses. • Release of hazardous Materials handling and control substances during procedures construction, operation Control of construction vehicle (e.g. vehicle spills) leading movements and prohibition of to soil, surface or vehicle washing in groundwater watercourses, and similar contamination. practices Emergency response plans during construction (contractors and local authorities) and operation (local authorities) Air Quality Sensitive siting of construction • Dust from construction, facilities and other emissions during Dust control and suppression construction and measures operation (e.g. wildfires), Modern equipment with could affect human meeting appropriate emissions health, crops and wildlife standards and regular preventative maintenance No use of ozone depleting substances during construction Noise and vibration Sensitive siting of construction • Noise and vibration from facilities equipment, traffic and Use of modern equipment activities during fitted with abatement devices construction solar farm, (e.g mufflers, noise access roads and enclosures): good transmission lines (and maintenance regime maintenance) at sites and Strict controls of timing of associated facilities, may activities e.g any activities with disturb sensitive noise

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor receptors (human and high noise emission; prohibition fauna) on night working Observance of seasonal sensitivities ( e.g. breeding seasons ), and alteration of activity to reduce noise levels at that time Speed controls and other traffic calming measures to prevent excessive speed around settlements/sensitive receptors. Resources and waste Water supply prior to any • Construction and abstraction, to inform a operation will require sustainable water supply of water from management plan surface or groundwater, No abstraction without prior which could affect existing approval of relevant supply for human authorities at all locations communities and Promotion of water efficiency ecosystems (including leak detention, preventative maintenance of equipment) and water recycling. • Water requirements may The use of a dry cooling be high for system instead of a wet large/concentration solar cooling system for power plants (cooling concentrated solar power water is required for solar plants will reduces water concentration devices). requirements Promotion of water efficiency (including leak detention, preventative maintenance of equipment) and water recycling • Inefficient waste Preparation of waste management during management plan following construction and the waste hierarchy, maintenance leading to supported by staff training excess materials Use of authorised contractors consumption, generation for hazardous and any other of wastes/emissions, soil wastes which the sub-project and water pollution cannot dispose of safely • Loss, fragmentation and Careful siting of all sub-project degradation of habitat, components, with advice from and severance of animal biodiversity authorities/wildlife migration routes and specialists pathways

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor • Land clearance for the Strict avoidance of sensitive solar power plant and areas, critical natural habitats, upgrade/expansion of and protected natural habitat existing plants may cause or sub-project locations where loss or fragmentation of activities would adversely protected areas and other affect rare and endangered areas of conservation animal species. interest and degradation following poorly managed Wherever feasible, rehabilitation. establishment of buffer zones around conservation areas, watercourses and other location identified as ecologically sensitive and avoidance or minimisation of activity within these zones Rehabilitation of cleared areas with native species, and ecosystem restoration in habitat of conservation value, using specialist advice and input backed up by a long- term monitoring programme and corrective actions as necessary. • Severance of terrestrial Sensitive siting based on good routes and watercourses understanding of physical and used for migration or for biological baseline conditions access to feeding and Wildlife crossings for terrestrial breeding areas (e.g. by animals and design of access roads ) culverts/crossing structures to avoid impacts on aquatic animal movement. • Construction (and to a Where development in lesser extent operational sensitive areas cannot be impacts) on habitats and avoided, mitigation may species from habitat include: alteration and Minimisation of area degradation (e.g. from impacted, clear demarcation changes in drainage, soil of remaining intact areas of erosion, pollution of water, habitat, and prohibition soils or air, introduction of activity into those areas for invasive species and any purpose general human No ground clearance disturbance ) upstream of sensitive areas unless appropriately engineered drainage installed Habitat rehabilitation and ecosystem restoration of areas

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor no longer required after construction, as soon as possible If loss of critical habitat is inevitable, development/implementation of an offsets programme Also see measures under soils, run-off and flooding and pollution of soils and water above and invasive species below Direct impacts on flora and Careful site selection and fauna siting of all sub-project • Clearance of vegetation components with advice from may lead to loss of plant biodiversity authorities/wildlife species and habitat of specialists conservation interest Careful planning of phasing and timing of construction activities Demarcation and avoidance of species of conservation interest in work areas here possible, otherwise transfer to other suitable location if possible, under expert supervision Also see measures under soils, run-off and flooding and pollution of soils and water above and invasive species below • Solar power plants could Careful siting of all sub-project displace animals and components, with advice from disturb their habitats, by biodiversity authorities/wildlife direct disturbance during specialists construction and Careful planning of phasing operation (e.g. from noise, and timing of construction light disturbance at night, activities general human presence) Demarcation and avoidance of areas of conservation of interest (high value, species, feeding or breeding sites, migration routes etc.) Invasive Species • Invasive Species • Movement of plant from Management Plan, which the arrival of workforce should be developed and into areas could introduce implemented in invasive species which consultation with

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor adversely impact fauna, authorities, including flora, ecosystems, and appropriate eradication crops. measures for different species/groups of species. • Staff training and awareness raising in communities. • No introduction of exotic species (e.g. for site rehabilitation) without specialist vetting and government approval. Social Physical and Economic • Initial site selection taking (Human) Displacement of People, into account original land Environment Property, Assets and use, preferentially Resources selecting land of minimal • Development of solar value. power plants, especially • Comparison of alternative large ones, may physically locations. displace people, or lead • Careful siting of all sub- to the loss of assets, e.g. project components,, and land of agricultural or avoid occupation of areas other beneficial use which are inhabited or regarded as of high value by communities (e.g. horticulture, community orchards) where possible. • Early development and sensitive implementation of resettlement planning, in accordance with national regulations and international good practice to compensate for any losses (both physical and economic.). • Adoption of a Stakeholder Engagement Plan, as a framework for early and ongoing community consultation. • Implementation of a Grievance Procedure (see Grievance Procedure and Redress Mechanisms guidance note). Cultural Heritage • Strict avoidance of • Displacement or damage locations where the sub- to cultural heritage sites by project would displace,

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor construction activities, alter or render inaccessible harm to the setting, important cultural heritage amenity value, etc. of the sites, including historical site. sites/monumnments, graves, churches and mosques. • Transparent and culturally appropriate communication with communities regarding employment opportunities. • Fair and transparent hiring and staff management procedures. • Development of measures to manage the transition after construction is complete, including SME development, ongoing opportunities for the workforce in road management and maintenance, reskilling and alternative employment. • Careful siting, taking account of community consultation and if appropriate specialist surveys. • Implementation of a “Chance Finds” procedure during construction. Community Health, Safety • Procedures for sustainable and Security local procurement, in • Poor construction consultation with local management practices authorities and community may lead to adverse leaders. effects on safety, human • Local capacity building to health and wellbeing. foster community resilience.

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor sexually transmitted water, rodent control, diseases (STDs). treatment of water. • Risk assessments and emergency response planning to consider impacts on local communities. • Also see measures under Soils, Run-off and Flooding, and Pollution of Soils and Water above. • Implementation of a health management system for the construction workforce, to ensure it is fit for work and that it will not introduce disease into local communities. • Training and awareness training for workforce and their dependents on HIV/AIDS and other STDs, and communicable diseases including malaria; health awareness raising campaigns for communities on similar topics. Landscape and visual impacts • Careful siting. • The solar power plant, • Landscaping design by especially if large, could qualified personnel (e.g. a generate negative landscape architect) landscape impacts. working closely with the local communities and other relevant parts of government, e.g. Department of Tourism. Workforce-Community • Works procedures, defining Interactions a Code of Appropriate • Real or perceived Conduct for all workers disruption to normal • Training for all of community life, through construction workforce, the physical presence of a and subsequently of construction workforce. permanent staff, in • Conflicts and increased acceptable behaviour criminality, including with respect to community possible increased in interactions. sexual assault on women • Contractors should maintain good community

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor relations, undertake periodic dialogues and coordinate its activities with the local communities. Operation Biophysical • Hazardous wastes from • Implement Extended Phase Environment damaged PV panels, Producers Responsibilities inverters and batteries; and buy back clause on • Soil contamination from the supply of PV panels, release of hazardous inverters and Batteries materials where the producers can • Groundwater contamination take them back and from waste water and dispose properly. hazardous chemicals; • Hazardous wastes should • Over-extraction (depletion) be disposed through of ground water reserves for licensed waste collector operational activities especially for panel washing with due diligence on their during dry seasons; final disposal. • Solar systems can pose risks to • Installation of sewage wildlife especially birds that treatment to meet may confuse solar panels required standards; with water bodies. This could hygiene training for result in the loss and workforce. reduction of the local birds’ • Activities capable of population; contaminating ground water through the use of hazardous chemicals shall be carried out at the appropriate places mostly on impervious surfaces. • Demarcation and avoidance of areas of conservation of interest (high value, species, feeding or breeding sites, migration routes etc.) Social • Increased potential of fire • Ensure electrical installations (Human) outbreaks due to failure of are carried out safely and Environment electrical installations; properly. • Potential for fire outbreak due • Provide firefighting to failure of electrical equipment to cover all areas installations; of electrical installation • Risks of occupational • Develop an Occupational accidents and injuries to Health and Safety Manual workers including exposure to and make it available to all hazardous chemicals, workers. electrocution and fall from • Implement the OHS manuals high positions. and training s for workers on its implementation.

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Project Environmental/ Anticipated Impacts Mitigation Phase Social Receptor • Risks of theft cases in • Provide and enforce the use absence of adequate of Personal Protective security measures Equipment • Local communities are • Prepare and Implement sub- unable to benefit from the project specific security plan electricity produced by the which will key into the project because local existing government security communities are not architecture. connected to the grid or not • Project operator to provide served by electric utilities. alternative program to enable local communities to share with the benefits of the sub-project.

Impacts Mitigation/Enhancement Measures

PRE-CONSTRUCTION AND CONSTRUCTION PHASES Loss of farm land, land-based • Develop and implement RAP/ARAP/LRP as per AfDB requirements livelihood including crops and to compensate affected persons. economic trees • Avoid forced eviction of farmers from their farmlands. • Ensure all issues relating to compensation are handled in a Grievance and conflicts over transparent, consistent and equitable manner. land resettlement & • Engage affected persons throughout the process of land compensation. acquisition. • Ensure affected land owners are adequately compensated for loss of land and economic crops at full replacement cost. • Provide employment opportunities to affected persons and communities. Reduction in food production • Establish a grievance mechanism to receive and address specific and economic benefits concerns about compensation. • Develop a chance find procedure unforeseen ancestral site • Ensure that traditional worship and shrine sites are carved out of proposed sub-project site and access to the place not restricted to the people • Use water to wet ground for dust suppression. • Conduct regular visual inspection of dust pollution and ensure appropriate intervention if dust levels are high. Deterioration of local air • Pave access roads with gravel to minimize release of dust. quality due to the release of • Ensure regular maintenance of vehicles and other heavy fugitive dusts. equipment to ensure efficient combustion and minimal emissions. • Enforce speed limits to reduce airborne fugitive dusts. • Train drivers/ workers on proper operation of vehicles and equipment to include fuel efficiency and anti-idling techniques. Noise and vibration • Restrict all haulage and noise generating activities to working hours disturbances from operation during the day when noise is better tolerated.

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Impacts Mitigation/Enhancement Measures

of machineries and motorized • Select and use (where feasible) vehicles and equipment with lower equipment. sound power levels. • Install suitable mufflers on engine exhausts and compressor components. • Ensure the maintenance of all equipment in accordance to manufacturer’s specifications. • Enforce appropriate speed limit to reduce vehicle noise levels. • Respond promptly to noise complaints. • Provide and enforce the usage of hearing protection devices (ear plugs/muffs) for workers. • Fence solar facilities from surrounding communities. • Install CCTV surveillance system. Increased security risks due to • Deploy competent security personnel to secure sub-project site. storage of materials and • Provide adequate training of security personnel. equipment on site • Disclose on-site security arrangements to the public especially members of nearby communities • Ensure regular maintenance of vehicles to minimize potentially serious accidents caused by equipment malfunction or premature failure. • Engage drivers with appropriate class of driving license and at least three years of driving experience. • Train drivers on defensive driving techniques, haulage safety and Traffic congestions and risks of pedestrian safety. road traffic accidents and • Develop and implement a Traffic Management Plan (TMP). injuries. • Use appropriate signage to warn drivers and road users especially on site access road. • Ensure coordination with emergency agencies to ensure that appropriate first aid is provided in the event of accidents. • Where possible, use locally sourced materials to minimize transport distances. Loss of vegetation and • Restrict removal of vegetation and trees to the boundary of sub- natural habitat project site only; • Retain all short (<18 cm) native vegetation; • Protect all vegetation not required to be removed against Loss of ecosystem services damage; and such as fuel wood and • Undertake quick re vegetation of exposed soils with indigenous economic trees plant species. • Use erosion protection structures such as sediment traps, riprap, gabions etc. • Restrict removal of vegetation and trees to the boundary of sub- Predisposition to soil erosion project site only. due to the removal of vegetal • Protect all vegetation not required to be removed against cover and exposure of soil damage; surfaces to rain and wind. • Undertake quick re vegetation of exposed soils.

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Impacts Mitigation/Enhancement Measures

• Use erosion protection structures such as sediment traps, riprap, gabions, etc. Failure to use resident labour during construction could • Develop and implement Local Employment and Procurement create frustrations/ Policy. community tensions and even • Ensure engagement of local workers. local conflicts that may result • Ensure compliance with national and international labour law. into vandalism, sabotage, • Ensure due diligence and adherence to the required local content looting or destruction/ policy. degradation of infrastructure and equipment. Occupational related • Develop a sub-project specific Occupational Health and Safety accidents and injuries to Plan (OHSP) commensurate to the sub-project activities. workers including struck by, • Prohibit drug and alcohol use by workers while on the job. exposure to dangerous • Provide adequate first aiders at site. animals, noise exposure etc • Provide and enforce usage of appropriate PPE • Restrict removal of vegetation and trees to the boundary of sub- project site only. • Protect all vegetation not required to be removed against Predisposition to soil erosion. damage; • Undertake quick re vegetation of exposed soils. • Use erosion protection structures such as sediment traps, riprap, gabions, etc. • Develop and Implement a site-specific Waste Management Plan (WMP) to prevent unregulated dumping of waste. • Ensure that hazardous wastes are stored in properly labelled closed Construction waste containers placed away from direct sunlight, wind and rain. generation. • Provide secondary containment with 110% of storage containers for hazardous waste. • Ensure usage of government approved waste vendor. • Prepare and implement an Emergency Response Plan to respond to incident of spillage. • Store fuels and other supplies for site construction activities in Soil contamination from designated area in the sub-project site. leakage/spillage of fuel or oil • Ensure regular maintenance of vehicles to avoid leaks of motor oil, from equipment and vehicles. hydraulic fluid and other hazardous materials. • Develop and Implement a site-specific Waste Management Plan (WMP) to prevent unregulated dumping of waste. Construction of access roads • Improve access roads by paving the surface to assure their to enhance easy movement durability. of people and their farm • Ensure adequate maintenance of the road to assure sustainability. produce. Direct and indirect Job • Develop and implement Local Employment and Procurement creation. Policy.

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Impacts Mitigation/Enhancement Measures

Stimulation of local and • Ensure engagement and training of locals throughout project life regional socioeconomic cycle. activities arising from • Ensure provision of contracts to local contractors. employment and award of • Ensure compliance with national and international labour law. contracts. • Ensure due diligence and adherence to the required local content Improved livelihood and policy. poverty reduction. • Ensure engagement and training of locals to operate and manage the solar PV farm after construction. Risk of communicable diseases such as STDs • Provide education, guidance and counselling on HIV/AIDs and including HIV/AIDS from influx other STIs for workers and community members. of temporary construction workers. Increase demand on existing health and sanitation • Develop a CSR program to support infrastructural development in infrastructure due to influx of host communities. temporary workers and camp followers. • Develop an induction program including a code of conduct for all workers. • Improve awareness and sensitivity of workers to local cultures, traditions and lifestyles. Increased social vices/crimes • Ensure affected communities are assisted and have a voice in and dilution of indigenous appropriation of mitigation measures. culture, norms and traditions • Develop and implement a grievance procedure and raising in nearby communities. awareness of grievance procedures amongst affected communities. • Provide a grievance register and grievance officer. • Promote of the establishment of local vigilante groups at community level in consultation with the Police authorities. Risks of occupational • Develop a sub-project specific Occupational Health and Safety accidents and injuries to Plan (OHSP) commensurate to the sub-project activities. workers. • Prohibit drug and alcohol use by workers while on the job. • Provide adequate first aid on site with trained personnel to Risk of electrocution to administer it. workers. • Provide and enforce usage of appropriate PPE • Restrict unauthorized access to all areas of high tension potential to prevent electrocution. Risks of occupational • Establish “No Approach” zones around or under high voltage accidents and injuries to power lines in conformance with TCN requirements. workers including slip and fall, • Use proper signage (In English and local languages) and ergonomics hazards and engineering barriers (e.g. fencing) to limit access to electrically other associated risks. energized equipment and conductors in order to prevent access to electrical hazards by unauthorized individuals. OPERATION PHASE

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Impacts Mitigation/Enhancement Measures

Generation of renewable electricity to boost national power supply. • Ensure proper and prompt maintenance of sub-projects to ensure Avoidance of fossil fuel use sustainable electricity generation and supply. and reduced GHGs gas emissions • Develop and implement Local Employment and Procurement Policy. • Ensure engagement and training of locals throughout the life cycle Creation of employment and of the sub-project. business opportunities • Ensure compliance with national and international labour law. • Ensure due diligence and adherence to the required local content policy. • Ensure award of contracts to local contractors. Visual intrusion and disruption • Retain natural vegetation as much as possible within the solar to aesthetics plant. • Develop a sub-project specific Occupational Health and Safety Plan (OHSP) commensurate to the sub-project activities. • Prohibit drug and alcohol use by workers while on the job. • Provide adequate first aiders at site. • Restrict unauthorized access to all areas of high tension potential Risk of electrocution to to prevent electrocution. workers • Establish “No Approach” zones around or under high voltage power lines in conformance with TCN requirements. • Use proper signage (In English and local languages) and engineering barriers (e.g. fencing) to limit access to electrically energized equipment and conductors in order to prevent access to electrical hazards by unauthorized individuals. • Install appropriate fire safety and protection system and equipment. • Train workers on fire prevention techniques and the use of different Potential for fire outbreak due fire extinguishing agents and equipment for fire protection. to failure of electrical • Ensure routine inspection and prompt repair of any malfunctioning installations electrical installations. • Develop and implement Emergency Response and Contingency Plan to respond to on-site emergency issues Technology transfer and • Develop and implement Local Employment and Procurement training of sub-project staff on Policy to cover the entire sub-project life cycle. solar power plant • Ensure engagement and training of locals to operate and manage management, operation and the solar PV farm after construction. maintenance. Increased revenue • Ensure payment of taxes to government as at when due. generation to government • Demand tax clearance certificate and necessary permits before through permits & taxes awarding contract to local contractors. Waste generation from used • Develop and Implement a site-specific Waste Management Plan batteries, spoilt/broken panels (WMP) to prevent unregulated dumping of waste.

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Impacts Mitigation/Enhancement Measures

as well as domestic waste. • Develop a buy back agreement with manufacturers and suppliers of batteries, panels and other materials that cannot be easily disposed. • Ensure that hazardous wastes are stored in properly labelled closed containers placed away from direct sunlight, wind and rain. • Provide secondary containment with 110% of storage containers for hazardous waste. • Ensure usage of government approved waste vendor. • Prepare and implement an Emergency Response Plan to respond to incident of spillage. • Store fuels and other supplies for site construction activities in Soil contamination from designated area in the sub-project site. transformer oil and other • Ensure regular maintenance of vehicles to avoid leaks of motor oil, petroleum products hydraulic fluid and other hazardous materials. • Develop and Implement a site-specific Waste Management Plan (WMP) to prevent unregulated dumping of waste. • Develop a sub-project specific Occupational Health and Safety Plan (OHSP) commensurate to the sub-project activities. • Prohibit drug and alcohol use by workers while on the job. • Provide adequate first aiders at site. Risks of occupational • Provide and enforce usage of appropriate PPE accidents and injuries to • Restrict unauthorized access to all areas of high-tension potential workers including exposure to to prevent electrocution. hazardous chemicals, electrocution, falls from • Establish “No Approach” zones around or under high voltage heights etc. power lines in conformance with TCN requirements. • Use proper signage (In English and local languages) and engineering barriers (e.g. fencing) to limit access to electrically energized equipment and conductors in order to prevent access to electrical hazards by unauthorized individuals.

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ESMF Nigeria Solar IPP Program (January 2019) 13 ANNEX 3: RESETTLEMENT POLICY FRAMEWORK 13.1 Introduction Nigeria has a population of over 180 million people and currently faces major energy challenges with as much as 98 million people, ~55% of its citizens, lacking access to grid-connected electricity as at the end of 2015. Even with an installed capacity of ~11,165 MW as at December 2017, available daily generation capacity has been erratic ranging from 3,000 MW to 5,000 MW due to gas, transmission and distribution constraints. This is short of the required electricity to supply its huge and growing population. This shortfall in generation capacity has led to the proliferation of many individuals and businesses owning and using diesel generators, which are inefficient and polluting. This has the resultant effect of increasing GHG emissions in the country. Between the years 1990 through 2010, the GHG emissions increased from 164 million tonnes (MT) CO2eq to 263MT CO2eq. Population growth along with predicted economic growth is expected to drive the GHG to over 900 MT CO2eq by 2030 The installed energy mix in Nigeria is 26% from hydro and 74% from oil, gas and other fossil fuels, highlighting the significant amount of room for growth of solar power within Nigeria’s installed energy mix. It is estimated that that 100 litres of diesel is used to produce 1MWh electricity. In relation to the Nigerian Solar IPP program, this could translate to a proposed 100 MW solar PV project having a potential to displace the burning of 2.3million litres of diesel each year. Consequently, the proposed Nigerian Solar IPP program will significantly reduce GHGs emissions in the sub-project areas and ultimately reduce the carbon footprint of the nation. Facing serious electricity supply deficit over many years, Federal Government of Nigeria (“FGN is actively seeking to improve conditions for private investment in the power and energy sector. Solar power is a critical component of the power policy of the FGN who has reaffirmed its commitment to increasing renewable energy capacity as a part of Nigeria’s Vision 2020. Overall, the Vision 2020 programme presents an ambitious goal of 35,000 MW by 2020, of which 10% is targeted to be provided from renewable energy (3,500 MW). To show its commitment to increasing generation and diversifying away from thermal and hydro, the FGN through the Nigerian Bulk Electricity Trading Plc (“NBET”), the off-taker, signed several utility scale solar Power Purchase Agreements (PPAs) in July 2016 to supply ~1,125 MW of power to the Nigerian power grid. The 14 IPP sub-projects, mostly located in the northern part of Nigeria are expected to bring significant diversification from diesel generation sources. To date, none of these sub-projects have been able to reach financial close.

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In support of the development and implementation of the Program, the Africa Finance Corporation (“AFC”), an Africa focused infrastructure financing institution with US$3.9 billion in total assets and US$4.4 billion in total disbursements and the African Development Bank (“AfDB”), a pan-African development finance institution with more than 80-member states and 54 regional member countries; the two highest rated financial institutions in Africa, are together proposing to work with the Green Climate Fund (“GCF”) on a Nigeria Solar Intervention Program, which will catalyse the delivery of c.400MW of renewable power, (the “Program”), ensuring the successful financing, construction and operations of the first utility scale power projects in the country. The Program will consist of US$300 million to be equally provided by GCF, AfDB and AFC, and will provide concessional debt alongside local financial institutions for the construction of 3 – 5 of the Program. Each of the 14 IPP’s will be required to submit relevant documentation and those that meet the selection criteria will be shortlisted. The intent is for debt to be provided alongside local financial institutions in order to support an aggregate of sub-projects with total costs of up to US$467 million. The Program is expected to reduce or avoid 476,487t CO2 eq on an annual basis (9,529,739 t CO2 eq. over the life of the Program), at least 1 million households in Northern Nigeria will be direct or indirect beneficiaries, reduce the perceived risks of investing in the Nigerian renewable energy sector and catalyse private sector investment in the sector. As part of the E&S safeguards documentation required to support the AFC and AfDB application for GCF funding, a Resettlement Policy Framework (RPF) is required for the Program. 13.2 Program Description There is currently no utility scale solar IPP PV project in Nigeria. This Program is an opportunity to spearhead the development of the first of such projects, which will have significant demonstration effect to FGN and the energy and power market in the country, with the seventh most populated country in the world (190 million) according to the world population review

The main objective of the Program is to provide long term financing to selected sub-projects within the Program. The Program offers a financing package to selected projects meeting the selection criteria. Funding from the Program will be used to incentivize sponsors to optimize their financial structures, the selection criteria will incorporate a ranking that will benefit projects, which require less concessional funding as a percentage of project cost. Under the Program, it is envisaged that GCF’s funding amount will be transferred to the AFC as governed by the FAA. The ‘transfer’ of funds will be structured as a

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ESMF Nigeria Solar IPP Program (January 2019) loan between AFC and GCF, which AFC will subsequently on-lend15 to each of the selected sub-projects. Thus, AFC will show as the lender of record for GCF funds provided to each of the selected projects, albeit through a separate tranche.

There are currently 14 solar IPP projects in Nigeria with a total generation capacity of 1,175MW. Of these, a total of 13 are being considered for funding under the Program. It is expected that 3 - 5 projects will be financed under this Program. No other sub-projects outside the Program will be considered for funding.

Some technical details about the sub-projects is presented in Table 13.1. The specific locations of the 13 projects (within the IPP projects) which are being considered for funding under the Program are presented in Figure 13.1. Location of 13 sub-projects being considered for funding under the Program Additional details about sub-projects (including types of solar power energy, design, technology, land requirements, stakeholders, etc) will be discussed in the individual E & S documentation (e.g. ESIA, RAP, LRP, etc) once the sub-projects selected for funding under this lending program have been identified.

Table 13.1. Summary of all the Solar IPPs signed by the Federal Government of Nigeria

Project / Project Company State Capacity Land Financial (MW) requirements Close

1 Pan Africa Solar Katsina 75 120ha NO

2 Nigerian Solar Capital Partners Bauchi 100 TBC NO

3 Afrinegia Power Limited Nasarawa 50 TBC NO

4 KVK Power Limited Sokoto 50 178.9ha NO

5 Middle Band Solar One Kogi 100 TBC NO

6 Novia Scotia Power Development Jigawa 80 TBC NO Company

7 CT Cosmos Plateau 70 TBC NO

8 Oriental Renewable Solutions Jigawa 50 TBC NO

9 Quaint Abiba Power Kaduna 50 TBC NO

10 Anjeed Innova Group Kaduna 100 262.77ha NO

11 EN Africa Kaduna 50 150ha NO

15 As per the GCF E & S guidelines, the AFC in this transaction can be considered as a Financial Intermediary

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12 Motir Dusable Limited Enugu 100 N/A N/A

13 Nova Solar 5 Farm Limited Katsina 100 N/A N/A

14 LR Aaron Power Abuja 100 N/A N/A

*Project No 14 (LR Aaron Power) is not currently being considered for inclusion under the Program.

TBC . To be confirmed. This implies that substantive sub-project information is not yet available. The ESDD process to be deployed for selected sub-projects will be aligned to the processed detailed in ESMF.

N/A. this is the sub-projects within the 14 Solar IPP program which will not be considered for funding under the Program.

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Figure 13.1. Location of 13 sub-projects being considered for funding under the Program

The location of these sub-projects is significant for a variety of reasons: g. The bulk of them are situated in areas with high irradiance h. Apart from the positive environmental benefit associated with solar, solar is the most feasible way of generating power in Northern Nigeria. Most of the main Northern cities are located over 1,000 km from the main thermal power stations in the Southern part of the country.

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ESMF Nigeria Solar IPP Program (January 2019) i. Solar has the potential to provide power to the underserved load centers and increase economic activity in Northern Nigeria. j. With its location in Northern Nigeria, the Program has a key role in increasing generation capacity in power-starved areas and catalyzing economic development where the power shortage is the most severe with limited generation options. k. The bulk of the 13 sub-projects being considered under the Program are in the predominantly Derived Savannah and Guinea Savannah areas in Northern Nigeria which has high climate vulnerability, food insecurity, extensive deforestation, and with high dependency of the population on biomass energy as well as inefficient technologies which further aggravate the vulnerability of livelihoods to climate risk. l. Over 50% of the 13 sub-projects being considered for funding under the Program are in the 10 poorest states in Nigeria.

There is the potential that some of the sub-projects being considered for the funding program may result in local impacts associated with physical or economic resettlement. At this stage, the specific sub-projects that will be considered under the AFC-AfDB-GCF funding program has not yet been decided. As such the most appropriate E&S safeguard instrument to be prepared in compliance with the AFC, GCF and AfDB is the Resettlement Policy Framework (RPF).

13.3 Rationale of the RPF This RPF defines the process by which potential sub-project resettlement impacts leading to the need for an FRAP/ARAP or LRP will be screened, and impact assessment and compensation measures developed and implemented. Once the sub-projects, specific sites and the beneficiary communities have been defined clearly, all sub-projects and activities will be screened and the appropriate mitigation tools such as ESIAs ESMPs, ARAP or LRP will be developed were applicable in line with applicable safeguard requirements. The screening process will be aligned to the screening process outlined in ESMF Annex 1A (presented in a separate submission). This Resettlement Policy Framework (RPF) provides the necessary background to ensure that any sub-projects that might involve land acquisition and/or resettlement and loss of livelihoods of any people will comply with both Nigerian law and the Bank's Operational Safeguards. The RPF will prescribe the process from the preparation, through review and approval to implementation of the sub-projects that will ensure that the

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ESMF Nigeria Solar IPP Program (January 2019) substantive concerns of all AfDBs Operational Safeguards and relevant Nigerian policy and legal frameworks will be adequately addressed. For each sub-project considered for funding an FRAP or ARAP (as applicable) will be prepared and submitted to the AFC and AfDB for approval once specific information about land appropriation is available. The RPF describes the design criteria for the resettlement of affected persons in the course of implementation of the sub-project, the legal context, the process for the preparation of a RAP, the content of a Plan, the process for its execution and finally the required institutional organization. 13.4 Purpose of the Resettlement Policy Framework Involuntary resettlement involves the displacement of people arising from development projects which encroach on their productive assets, cultural sites and income sources such as land, grazing fields, other assets, etc. What distinguishes involuntary from voluntary resettlement is that the former involves people who may be displaced against their wishes, as they are often not the initiators of their movement. The implementation of the Program may trigger the involuntary resettlement policy as minimal displacement is anticipated because land may be acquired for sub-projects activity purposes and affected persons will need to be compensated for loss of land, crops, dwellings and other structures, and livelihoods. This Resettlement Policy Framework (RPF) has therefore been prepared to appropriately deal with matters such as the necessity for land acquisition, compensation and resettlement of people affected by the implementation of the sub-projects. 13.5 Objectives of the Resettlement Policy Framework

The overall objective of the RPF is to provide guidance on how to deal with issues relating to land acquisition, compensation and resettlement during the implementation of the sub-project. This will ensure that displaced and resettled persons are compensated for their loss at replacement cost, given opportunities to share in sub-project created benefits, and assisted with the move and during the transition period at the resettlement site. The specific objectives of the RPF are as follows:

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i. to minimize, as much as possible, acquisition of land for implementation of sub-project components, where such acquisition or project related activities will result in adverse social impacts, ii. to ensure that where land acquisition is necessary, this is executed as sustainable programs to enable people share in the project benefits, iii. to ensure meaningful consultation with people to be affected or displaced; and iv. to provide assistance that will mitigate or restore the negative impacts of the project implementation on the livelihoods of people affected in order to improve their livelihoods or at least restore to pre-project levels. v. outline roles and responsibilities by various stakeholders in the planning, implementation, monitoring and evaluation of resettlement activities. vi. Allow redress among communities affected by sub-project activities; and vii. Reduce stress on sub-project affected communities/households.

The operational objective of the framework is to provide guidance to stakeholders participating in the mitigation of adverse social impacts of the sub- project, including rehabilitation/resettlement operations, in order to ensure that PAPs will not be impoverished by the adverse social impacts of the project. The target groups for the RPF are all the stakeholders relevant to the implementation of the sub-projects to be considered for the Program. This includes PAPs, communities and NGOs as applicable.

13.6 Legal and Administrative Framework governing resettlement in Nigeria The legal framework relating to resettlement issues consists of the various pieces of Nigeria legislation and AfDB Operational Safeguards (OS2) and IFC Performance Standard 5. The legal basis for resettlement in Nigeria is the Land Use Act of 1978, modified in 1990. According to the Act, all land in Nigeria is vested in the Governor of each State, to be held in trust for the use and common benefit of all people. The administration of urban land is directly under the control and management of the Governor, whereas non-urban land is under the control and management of the Local Government Authority. The Governor has the right to grant statutory rights of occupancy to land while the Local government has the right to grant customary rights of occupancy. Since the Land use Act gives to the State ownership of all land, compensation by sub-projects is restricted to structures, installations, and improvements on the land, not the land itself. However, the Act

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ESMF Nigeria Solar IPP Program (January 2019) does require the State or Local Government to provide alternative land for affected people who will lose farm land, residential (commercial/industrial) plots. 13.6.1 Land Use Act – 1978 The principal piece of legislation for the expropriation of land in Nigeria is the Land Use Act, 1978 Cap L5, and Laws of the Federation of Nigeria (LFN) 2004. The law establishes the legal framework for government expropriation of land from individuals and communities, when it is required for “overriding public interest/good”. It prescribes the circumstances under which the State can revoke rights of occupancy to the land and the compensation provisions that are required. Before 1978, the principal land tenure systems differed in Northern Nigeria and Southern Nigeria, with the Northern Nigeria Land Tenure System [NNLTS] and the Southern Nigeria Land Tenure System [SNLTS]. Traditionally, NNLTS was based on the premise that land belongs to the Government (i.e. no private ownership), while the SNLTS was based on the premise that land belongs to communities, families and individuals. The Land Use Act came into force on 29th March 1978 and replaced all pre- existing land tenure systems in Nigeria. The Act essentially does three things: • It places land into two categories: urban land and non-urban land, as designated by the Governor of a state wherein the land lies. • It redefines title in land to be a right to occupy or use the land, rather than to own it; namely: o a statutory right or a deemed statutory right of occupancy for land in urban areas; and o a customary right or a deemed customary right of occupancy for land in non-urban areas. • It empowers the Governor of a state to revoke rights of occupancy. There were several key repercussions as a result of the Act: • There is now a common Land Tenure System throughout the country; • Control and management of land is in the hands of Government; • A system of registration of titles has been introduced and paper titles (Certificates of Occupancy) are issued; and • The process of acquiring land is deemed to have been simplified for developers. The most significant change in the land tenure system, brought about by the Land Use Act, is the empowerment of the Governor of a state to revoke rights of

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ESMF Nigeria Solar IPP Program (January 2019) occupancy compulsorily, for public purpose. Section 28(1) makes it lawful for the Governor to revoke a right of occupancy for “overriding public interest”. Sections 28 (2)(b) and (3)(a) define this to mean, among other things, “…the requirement of the land by the state for public purposes within the state”. This means that a governor can revoke the right of occupancy to land (i.e. expropriate) for use either by the State, Local or Federal authority for overriding public interests. As per the provisions of the Land Use Act, this can include telecommunication, power projects, hospitals, market places, mining activities or agricultural use etc. When rights of occupancy are subject to revocation in this way, holders of rights of occupancy are, under the Land Use Act, entitled to compensation. However, this compensation is for the value of land improvements (“unexhausted improvements”) at the date of revocation (section 29). In other words, PAPs are not entitled to compensation for the land itself, but rather for improvements made to that land. Depreciation is considered when assessing the value of these improvements based on the national process of land-taking. The term “unexhausted improvement” is defined in Section 51 of the Land Use Act as: “anything of any quality permanently attached to the land directly resulting from the expenditure of capital or labour by an occupier or any person acting on his behalf and increasing the productive capacity the utility or the amenity thereof and includes buildings, plantations of long lived crops or trees, fencing, wells, roads and irrigation or reclamation works, but does not include the result or ordinary cultivation other than growing produce.” Where occupancy rights are not claimed by any one individual, the Act states that the recipient of the compensation may be: a. the community; b. the chief or leader of the community, to be disposed of by him for the benefit of the community in accordance with the applicable customary law; or c. a community fund, to then be utilised for the benefit of the community (section 29(3)). All rights of occupancy whether granted by the State or Local authority are typically for a fixed tenure and not usually more than 99 years. A person may not be entitled to compensation if the leasehold has expired. The Land Use Act has provisions for compensation in kind, rather than cash, through the provision of Resettlement Land. Section 33 of the Land Use Act stipulates that, when alternative land has been given, compensation will be

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ESMF Nigeria Solar IPP Program (January 2019) deemed to have been made. The concerned party is thereby prevented by law from demanding further financial compensation. The provision of Section 43 of the Constitution affirms the fundamental rights of persons and communities to own and hold land or property. It stipulates that any authority taking such land must do so in accordance with a law made in that regard. Importantly, such authority is required to pay the affected party compensation. Additionally, they must afford the right of access to the relevant adjudicatory forum, where any grievances regarding the amount of compensation to be paid and/or interest to the land in question, can be raised and resolved. 13.6.2 Electric Power Sector Reform (EPSR) Act - 2005 This piece of legislation repeals and replaces the Decree 24 of 1972, to enhance service delivery in all facets of its operation i.e. generation, transmission and distribution. The EPSR Act details the consultations Nigeria Electricity Regulatory Commission (NERC) has to undertake with both the rights holders and Commissioner of Land of relevant State of the Federation before land can be legally expropriated from person and communities (Sections 77(1), (2) and (3) EPRS Act). The EPSR Act affords rights holders and/or land occupiers to challenge the declaration by the Commission. It states that any person or group of persons including the right holders or occupiers affected by the decision of the Commission may apply to the Commission for a review of the Commission’s decision (Sections 77(8), 50(1) and 78(4), EPRS Act). The EPSR Act also affords the concerned aggrieved party the opportunity of being heard publicly in accordance with Sections 36 and 44 (1) (b) of the Constitution, 1999 as amended. Moreover, an aggrieved party may further appeal against the decision of the Commission to the Federal High Court (Section 49, EPSR Act). It is not possible for the President or the Electricity Commission to suo motu (effectively acting under its own volition) revoke the right of occupancy over a piece of land deemed necessary for a power/other project. Rather, the Governor is vested with this responsibility and is required to exercise it carefully, with appropriate engagement with sub-project stakeholders. 13.6.3 Nigeria Electricity Regulatory Commission (NERC) NERC is the independent regulatory body for the regulation of the electric power industry in Nigeria. Established through the EPSR Act of 2005, NERC is responsible for the review of electricity tariffs, subsidy policies, promotion of efficient and environmentally friendly electricity generation and enforcing standards for

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ESMF Nigeria Solar IPP Program (January 2019) electricity creation and use in Nigeria. NERC is largely responsible for regulating tariffs of power generating companies 1. NERC has the following legislation in place, Acquisition of Land Access Rights for Electricity Projects Regulations, 2012, to provide a regulatory framework for: a. the acquisition of land and access rights for electricity projects in Nigeria; b. making provisions for the payment of compensation and resettlement of persons affected by the acquisition of their land for the establishment of electricity projects; and c. the monitoring and evaluation of project designs of licensees to ensure compliance with environmental standards. The Regulations apply to the acquisition of land access rights for electricity in Nigeria, including projects related to generation, transmission and distribution of electricity. 13.6.4 Transmission Company of Nigeria (TCN) TCN was incorporated in November 2005, emerging from the defunct National Electric Power Authority (NEPA) as a product of the merger of the Transmission and Operations sectors on April 1, 2004. Being one of the 18 unbundled Business Units under the Power Holding Company of Nigeria (PHCN), the company was issued a transmission license on 1st July, 2006. TCN licensed activities include: electricity transmission, system operation and electricity trading which is ring fenced. TCN has the following legislation in place, Harmonised Rates for Economic Trees and Cash Crops for Compensation Assessment, July 21, 2009.

13.6.5 Overview of the Land Take process in Nigeria The process involves the following steps: Step 1: Preparation of a Survey Description This is a preliminary survey / mapping of the property intended for land-take. The survey description should be prepared by the Ministry of Lands and should contain the following information: • Position and dimensions of the land parcel to be acquired; • Spatial relation to other properties in the area; and • A list of all the communities on the property. The survey description provides the basis / information upon which approval for the chosen property to be acquired is provided and the property is thus surveyed or marked out with suitable marking points (see Step 3).

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Step 2: Publication of a Notice of Acquisition This is usually prepared by the Ministry of Lands and is then published in two newspapers (one national and the other local) and the government gazette, in order to enable any claims or objections to the intended acquisition to be made. These claims have to be made within a six-week period. The notice must also be approved and signed by the Governor, along with the survey description, before publication. Both documents are usually forwarded to the Governor with a covering memo prepared by the Permanent Secretary and signed by the Honourable Commissioner for Lands. Claims are then usually forwarded in writing to the Ministry of Lands within six weeks of the publication of the notice, following which the processing of claims and the negotiation of compensation can begin. Step 3: Surveying the Property Surveying can be conducted immediately, and before the expiration of the six- week notice period. The time that this takes to complete depends on the speed with which the survey fees are agreed and funds dispersed to the Ministry of Lands. It is understood that the Ministry of Lands has the sole right to do the surveying work when (in the case of this Program) it is the State that is acquiring the land. However, this does not prevent independent surveyors from being employed by the Program in order to ensure compliance with international standards. This step incorporates detailed consultation with local communities on the LRF principles and the start of the direct consultation process directly with the affected individuals. Step 4: Assessment This is essentially a State enumeration and valuation of unexhausted improvements on the land (estimates of compensation amounts due to affected individuals) to determine the compensation liability of government and for tax purposes (in cases involving private purchase of land). The compensation amounts arrived at are then discussed with the affected community or its attorney where the evaluator is present. Once agreement is reached, the compensation is paid. In some cases, direct disbursement takes place to each household. In other cases, the compensation is provided to the attorney who is then responsible for onward distribution. Step 5: Registration and Stamping This process involves placing land sale agreements (including survey plans / maps clearly delineating the piece of land in the sale transaction) at the lands registry / records after they have been stamped at the office of Commissioner of Stamp Duties, upon the payment of a fee. The Certificate of Occupancy is also

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ESMF Nigeria Solar IPP Program (January 2019) registered at the Lands Registry for records purposes, after stamping of the documents. In the case of compulsory land-take (as in the Program case) there are no sale documents for stamping or registration; however, the Certificate of Occupancy issued to the Project Company may be registered with the Lands Registry. Step 6: Preparation of Certificate of Occupancy The Certificate of Occupancy is then prepared by the Ministry of Lands and signed by the Governor, after which it is issued to the applicant. The overall land acquisition process may be concluded within approximately twelve to eighteen weeks.

13.6.6 Legal Mechanisms for Resolving Land-related Grievances The Constitution The Constitution specifically guarantees the right of individuals to acquire and own immovable property [Section 43]. It further gives individuals the right to dispute decisions made in the courts of the country. If any person feels that their right to own and acquire property is threatened or their entitlement to compensation has been overlooked or underestimated, they may approach the High Court of a State for necessary redress [Sections 44 (a) and (b) and 46 of the Constitution].

Land Use Act The Land Use Act only makes provisions for a dispute in relation to compensation payable; stating that it should be referred to the relevant committees established by the governor of the concerned state. There are no provisions in place for challenges against the legitimacy of a revocation order by the governor. This may be connected to the Trusteeship position of the governor and the fact that such revocation is seen to be based on the overriding public good of the people. An aggrieved party may approach the high court of a state in relation to compensation payable for improvements on land (Section 39 (2)). In urban areas, aggrieved persons or group of persons are to raise their grievances with the Land Use and Allocation Committee. For non-urban areas, such disputes are laid before the Land Allocation Advisory Committee. These two committees are constituted by the governor of a state. 13.6.7 Scope of the Land Use and Allocation Committee The Terms of Reference of the Land Use and Allocation Committee are described in Section 2(2) (a) – (c) of the Land Use Act and includes:

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• advising the governor on any matter connected with the resettlement of persons affected by revocation of right of occupancy on the grounds of overriding public interest; and • determining disputes as to the amount of compensation payable under the Act for improvement on land. The Committee is made up of at least two (2) people who are qualified under the civil service to be appointed estate surveyors or land officers. 13.6.8 Traditional Land Tenure in Nigeria The legal context of land tenure in Nigeria is complex, resulting from the co- existence of traditional (at times with Islamic influence) and state systems, neither of which is dominant. Traditional land tenure in Nigeria is based on traditional laws under which land is considered community property. Title to land under traditional law is vested in the community; no individual within the unit can lay claim to any portion of it as a formal owner. Individuals only ever retain rights to use. Normally, the village chief of a community acts as the ‘manager’, holding the land for the use of the whole community, and they mediate disputes involving traditional landholdings. An individual enjoys rights to the land for farming within his lineage or community area. The individual possesses the land to the extent that he uses it for his family’s or society's benefit and passes the land on to heirs (i.e. traditional rights to land can be inherited) or pledges its use to satisfy a debt. The right of disposal belongs to the community only, which, acting through traditional authorities or family representatives, exercises this right in accordance with traditional law. Where decisions about land use need to be made within a family, representative members of different branches are selected (e.g. from different branches within a polygamous family) and come to agreement about the issue. This happens most often regarding transactions between the family and third parties in conjunction with the village chief. Under traditional land tenure women can inherit land from their fathers, but not from their husbands. While women may be “granted” plots by their husbands, often for crop production, they do not retain the right to use this land following their husband’s death. Rather, the total land holdings of the husband are subdivided equally according to the number of wives, and use rights pass directly to the children. This includes passing to female children, so women are able to inherit land from their fathers, through their mothers. They are then free to pass this land on to whomever they choose.

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13.6.9 Certificates of Occupancy The Nigerian mechanism to formalise customary land ownership is a Certificate of Occupancy, which is issued by an authorised Government Office as evidence of a holder’s right to occupy and use a specific piece of land under certain terms of contract. Certificates of Occupancy afford customary rights of occupancy to land in non-urban areas for agricultural, residential, grazing and other uses. Certificates of Occupancy can be granted for a period of time up to 99 years.

13.6.10 Institutional Framework Compensation and resettlement issues fall under the jurisdiction of various levels of government in Nigeria. They are also governed by a range of legislation. Some of the principle government institutions and laws and their impacts are described below. Federal Government Nigeria functions under a Presidential system of government. The President, elected for a maximum of two terms of four years each, serves as both head of state and head of government. The President wields executive power through the Federal Executive Council, which is also composed of the Vice President and a 23- member cabinet. Legislative power is vested in the bicameral National Assembly of Nigeria, whose members are popularly elected for four-year terms. The upper house (Senate) comprises 109 members while the lower house (House of Representatives) has 360 members. The Senate and House of Representatives have concurrent legislative functions. Bills are not deemed to be validly passed if they have not received the joint assent of both houses. The Federal Government typically has limited involvement in land acquisition and resettlement, except in cases related to federal property, which is not the case for this Program. State Government Nigeria is a federal republic comprised of 36 states and a Federal Capital territory in Abuja. The executive powers of each state are vested in the governor, who exercises these powers directly or through the deputy governor, commissioners or other designated state officials. The legislative powers of a state are vested in the House of Assembly. The House of Assembly has power to make laws for the peace, order and good government of the state. In light of the fact that the Land Use Act (1978) prohibits challenge to the acquisition of land and gives the Governor of the State/Local Councils authority

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ESMF Nigeria Solar IPP Program (January 2019) to issue (or revoke) statutory or traditional rights of occupancy, the main focus of government engagement for land acquisition and resettlement is at the State and Local Government levels. The ministries and parastatals at the state level that will have some input into or provide some oversight regarding land acquisition, land-take and resettlement planning include the Ministry of Land; Ministry of Agriculture; Ministry of Environment; Ministry of Water Resources; Ministry of Commerce; Ministry of Local Government; Ministry of Justice and Ministry of Women Affairs. Local Government At the local level, sub-projects fall within a particular Local Government. A typical LGA is headed by an Executive Chairman, and has a Vice Chairman, Secretary to the Local Government, Treasurer and a Council Manager who, together with the department supervisors, form the Executive Committee. Key departments at the local government level which are likely to be of relevance to this Program include: Women’s Affairs and Poverty Alleviation; Education (specifically the Local Government Education Authority); Agriculture and Rural Development (including Culture and Tourism, and Community Development Associations); Works and Housing; and Health (Medical Officer of Health). Local government administrations usually have a wide variety of functions prescribed under the Constitution, including but not limited to: • Construction and maintenance of roads, streets, street lightings, drains, parks, gardens and open spaces. • Provision and maintenance of public conveniences, sewage and refuse disposal • Registration of births, deaths and marriages. • Assessment of privately owned houses or tenements for the purpose of levying such rates as prescribed by the House of Assembly of the State. • Participation in the provision and maintenance of primary, adult and vocational education. • The development of agriculture and natural resources, other than the exploitation of materials • The provision and maintenance of health services. • Establishment and maintenance of cemeteries, burial grounds and homes for the destitute or infirm.

Traditional Leadership The traditional leaders are the custodians of the land who oversee day to day activities in the various communities. They are relevant for the engagement with

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ESMF Nigeria Solar IPP Program (January 2019) affected persons and information dissemination. They also have local knowledge which could be relevant to the Program and are key in achieving community buy in. Their role is to facilitate stakeholder engagement at the community level, manage disputes and grievances, and provide information on community preferences and livelihood restoration options. 13.6.11 International Standards and Guidelines related to Involuntary Displacement In addition to the need to adhere to Nigerian legislative requirements, the Program will also seek to align with the international standards of AfDB and IFC. The African Development Bank Group’s (AfDB) Integrated Safeguard System In 2013 the African Development Bank Group updated their policy on Involuntary Resettlement and created an Integrated Safeguards System (ISS) to improve clarity, coherence and consistency as well as overall operational effectiveness. Resettlement is covered under Operational Safeguard 2 (Involuntary Resettlement: Land Acquisition, Population Displacement and Compensation), which includes comprehensive notions of livelihood and assets, accounting for their social, cultural, and economic dimensions. It also adopts a definition of community and common property that emphasises the need to maintain social cohesion, community structures, and the social interlinkages that common property provides. It furthermore stresses the importance of improving living conditions for PAPs through a Livelihood Restoration programme. OS 2 has the following specific objectives to: • avoid involuntary resettlement where feasible, or minimise resettlement impacts where involuntary resettlement is deemed unavoidable after having explored all other alternative project designs; • ensure that displaced people are meaningfully consulted and given opportunities to participate in the planning and implementation of resettlement programmes; • ensure that displaced people receive significant resettlement assistance under the sub-project, so that their standards of living, income-earning capacity, production levels and overall means of livelihood are improved beyond pre-project levels; • mitigate the negative impacts of displacement and resettlement, actively facilitate social development and establish a sustainable economy and society; and • set up a mechanism for monitoring the performance of involuntary resettlement programs and remedying problems as they arise so as to

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safeguard against ill-prepared and poorly implemented resettlement plans. International Finance Corporation (IFC) The IFC’s Performance Standard 5: Land Acquisition and Involuntary Resettlement recognises that project-related land acquisition and restrictions on land use can have adverse impacts on communities and persons that use this land and has the following key objectives: • To avoid, and when avoidance is not possible, minimise displacement by exploring alternative project designs; • To avoid forced eviction; • To anticipate and avoid, or where avoidance is not possible, minimise adverse social and economic impacts from land acquisition or restrictions on land use by (i) providing compensation for loss of assets at replacement cost 1 and (ii) ensuring that resettlement activities are implemented with appropriate disclosure of information, consultation, and the informed participation of those affected; • To improve, or restore, the livelihoods and standards of living of displaced persons, and • To improve living conditions among physically displaced persons through the provision of adequate housing with security of tenure at resettlement sites. Involuntary resettlement in IFC PS 5 refers both to physical displacement (relocation or loss of shelter) and to economic displacement (loss of assets or access to assets that leads to loss of income sources or means of livelihood) as a result of project-related land acquisition. Resettlement is considered involuntary when affected individuals or communities do not have the right to refuse land acquisition which results in displacement. Where it is unavoidable, appropriate measures to mitigate adverse impacts on displaced persons and host communities must be carefully planned and implemented. 13.6.12 Comparison of Relevant National Legislation and International Standards The primary difference between national legislation and international resettlement standards is that Nigerian law concentrates on compensation for lost assets, whereas the IFC PSs and AfDB Safeguards have an additional focus on livelihood enhancement (or, as a minimum, restoration). Emphasis is not only on compensation for lost assets but also on assisting people to improve (or at least restore) standards of living, incomes, and livelihoods. This includes providing

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ESMF Nigeria Solar IPP Program (January 2019) access to income-earning opportunities such as agricultural production or to natural resources deemed critical for subsistence. Nigerian legislation does not provide any compensation for the value of lost land (except for reimbursement of any rent paid by the occupier during the year in which the right of occupancy was revoked). PS 5, conversely, stipulates that, where physical replacement of the land is not possible, compensation at full replacement value should be provided. If land is not available or if national policy does not provide for compensation, then non-land based options, including; employment opportunities, assistance to establish businesses, or dedicated support services, should be provided. With regard to loss of access to commonly held resources, Nigerian legislation provides that, where a right of occupancy of land owned by the community is revoked for public purposes, compensation for unexhausted improvements on the land, taking account of depreciation, may be paid to the community at the relevant governor’s discretion and such payment may be to the relevant chief on behalf of the community or into a specially designated fund for the benefit of the community. PS 5 on the other hand provides for compensation to offset restrictions on access to communal resources. Assistance measures may include initiatives to enhance the productivity of the remaining resources, to which the community will continue to have access, in-kind or cash compensation for the loss of access, or access to alternative sources of the lost resource. Depreciation is explicitly not to be taken into account in calculating compensation for lost assets. The Program will follow Nigerian legislation and will also implement such additional measures as are necessary to achieve outcomes that are consistent with the AfDB Safeguards and the IFC Performance Standards. Table 1 below compares the AfDB Safeguards and IFC PS stipulations to Nigerian legislation for those categories of displacement impacts that sub-project activities are expected to incur. To avoid repetitions in the table below, relevant citations are referenced only once, even if they are relevant to more than one sub-project impact. For example, although livelihood restoration is an entitlement related to many different types of project impact, PS 5 guidance on livelihood restoration is mainly cited in the ‘Loss of Land’ Section. Similarly, the requirement to comply with local regulations of the jurisdiction in which the resettlement is being undertaken is only cited once, although it applies across the entitlement matrix. PS5 frequently references the high-risk nature of displacement and Guidance Note 11 states that “Compensation alone does not guarantee the restoration or improvement of the livelihoods and social welfare of displaced households….” In

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ESMF Nigeria Solar IPP Program (January 2019) this context, low-cost mechanisms such as the allowing PAPs to harvest their standing crops prior to the start of the construction process and/or providing training on how to improve the agricultural techniques used by the PAPs, can provide an efficient means to reduce impacts on displaced households. Table 2.1 provides a summary of the broad comparison of the AfDB and IFC standards for involuntary displacement with the relevant Nigerian legislation.

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Table 2.1: Comparison of Nigerian Law and principles of the AfDB and IFC applicable to Involuntary Displacement (Economic Displacement)

Category Nigerian Legislation AfDB OS 2 IFC PS5

Minimise Land Sub-project proponent to consider feasible Avoid, and when avoidance is Explore all viable alternative project Take and alternative project designs, including re- not possible, minimise design options to ensure minimisation Involuntary siting and re-routing, to avoid or minimise displacement by exploring of impacts (Land Use Act of 1978) Displacement physical or economic displacement. alternative project designs. A notice of acquisition is usually Livelihood Restoration prepared by the Ministry of Lands, in documentation must be conjunction with the survey Consultation Open, inclusive and effective consultation implemented with appropriate description. This notice is then and Disclosure with local communities is required disclosure of information, published in two newspapers (one consultation, and the informed national and one local and the participation of those affected. government gazette AfDB identifies three groups of displaced people that shall be entitled to compensation or resettlement assistance for loss of land or other assets taken for sub- Under Nigerian legislation, all land project purposes: rights constitute occupancy rights rather than ownership rights and • Those who have formal legal rights to accordingly eligibility for land or other assets recognised under compensation for loss of land is not the laws of the country concerned. provided for. Anyone possessing a • Those who may not have formal legal All occupants (including statutory or customary right of squatters) using or living on the Eligibility rights to land or other assets at the time occupancy to affected land is of the census / asset survey but can land prior to the cut-off date are entitled to compensation for prove that they have a claim that eligible for compensation. unexhausted improvements made to would be recognised under the that land. Encroachers are not customary laws of the country. recognised as an eligible group, and Those who have no recognisable legal right are thus not entitled to any or claim to the land they are occupying in compensation provisions. the sub-project area of influence, and who do not fall into either of the two categories described above, but are entitled to resettlement assistance in lieu of compensation for land to improve their

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Category Nigerian Legislation AfDB OS 2 IFC PS5

former living standards (compensation for loss of livelihood activities, common property resources, improvements (structures and crops) etc.), provided that they themselves or witnesses can demonstrate that they occupied the sub-project area of influence for a reasonable time (at least six months) prior to a cut-off date established by the borrower or client and acceptable to the Bank. A survey to record the dimensions of the affected land parcels needs to be carried out. The enumeration process is asset driven and not A census, asset inventory and A census, asset inventory and Census and household driven. There is no comprehensive socioeconomic survey is socio-economic survey are Asset Inventory particular format which is currently required with gender disaggregated required to collect baseline used by the Land Department. The information. data and identify PAPs. process mostly comprises of generic questions that are administered orally. Strategies to improve livelihoods of PAPs are Strategies to improve livelihoods Livelihood No provisions required. of PAPs are required. Special consideration has to be paid to the The consultation process must needs and rights of women. In the context ensure that women’s of gender vulnerability, the client must give perspectives are obtained and careful consideration to actively that their interests are factored facilitating consultation with both women into all aspects of physical and men in ways that are sensitive to the and/or economic Gender No provisions social and political constraints and barriers displacement planning and that women and men may face. implementation. The land-taking report (RAP or LRF/LRP) must include a specific protocol specifying Addressing livelihood impacts safeguards for the quality and quantity of may require intra-household land to be allocated to women, especially analysis in cases where women’s widows and divorcees, to ensure their and men’s livelihoods are

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Category Nigerian Legislation AfDB OS 2 IFC PS5

means to generate income and achieve affected differently. Women’s food security. and men’s preferences in terms Specifically, applicable to resettlement, of compensation mechanisms, land titles at the resettlement site are to be such as compensation in kind in the name of both spouses or of single rather than in cash, should be heads of household, regardless of gender, if explored. this does not conflict with the borrower or client’s own laws and legislation. Compensation payments to families are made to both husbands and wives when this is technically feasible and socially acceptable. There is a requirement to establish a cut-off date for eligibility that is acceptable to sub- The client is required to Though a cut-off date is not defined project financiers/lenders. The borrower or establish a cut-off date for by Nigerian legislation, there is a six- client documents the cut-off date and eligibility. Information Cut-off date week notice period given for land to disseminates information about it regarding the cut-off date is to be acquired by a sub-project. This is throughout the sub-project area of be well documented and not, however, a formal cut-off date. influence in a culturally appropriate and disseminated throughout the accessible manner, before taking any sub-project area prior to taking action on clearing land or restricting local any land. community access to land. Compensation is to be made before land Compensation needs to be Once the compensation amounts and related assets are taken; and, if the Timing of provided to all those affected have been discussed with the sub-project is implemented in phases, Compensation before taking possession of the affected people. before sub-project activities begin for each land. particular phase. PAPs are compensated for all Cash compensation is generally PAPs are compensated for all their losses at their losses at full replacement made based upon government rate full replacement cost. PAPs can be offered cost. PAPs can be offered a as well as depreciation value. Whilst a range of different compensation range of different Compensation in principle there is allowance for in- packages, resettlement assistance, and compensation packages, kind compensation or replacement livelihood improvement options. resettlement assistance, and of assets, cash compensation is Engagement is key to determine the livelihood improvement common practice appropriate compensation packages. options.

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Category Nigerian Legislation AfDB OS 2 IFC PS5

Engagement is key to determine the appropriate compensation packages. Compensation is required if communal property and natural resources such as marine and aquatic resources, Communal No provisions Page 32 of the ISS mentions compensation timber and non-timber forest resources for the loss of communal resources. products, freshwater, medicinal plants, hunting and gathering grounds and grazing and cropping areas are impacted. Displaced people are provided with targeted Displaced people are provided with assistance with the aim of targeted assistance with the aim of ensuring that their standards of Livelihood ensuring that their standards of living, No provisions living, income-earning Assistance income-earning capacity, production capacity, production levels levels and overall means of livelihood are and overall means of livelihood improved beyond pre-project levels. are improved beyond pre- project levels. Many Nigerian policies address the Special attention needs to be needs of vulnerable people, such as Special attention needs to be paid to paid to vulnerable groups and Vulnerable the Gender Policy, Child Act or vulnerable groups and special provisions special provisions required in People NEEDS framework. However, there required in the livelihood restoration the livelihood restoration are no specific provisions related to process. physical or economic displacement. process.

Section 30 of the Land Use Act 1990 There is a requirement to establish a The client is required to 6 v: “Where there arises any dispute culturally appropriate and accessible establish a grievance as to the amount of compensation grievance and redress mechanism to mechanism as early as possible calculated in accordance with the Grievances resolve, in an impartial and timely manner, in the project development provisions of section 29, such dispute any disputes arising from the land-taking phase. This will allow the client shall be referred to the appropriate process and compensation procedures. to receive and address specific Land Use and Allocation PAPs must be informed about the concerns about compensation Committee.” mechanism. raised by displaced persons in

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Category Nigerian Legislation AfDB OS 2 IFC PS5

a timely fashion, including a recourse mechanism designed to resolve disputes in an impartial manner. An independent third party is required to monitor the implementation of large-scale or complicated resettlement or livelihood The client is required to restoration plans, with regular feedback establish procedures to monitor Monitoring No provisions from PAPs. For largescale displacement and evaluate the operations quarterly reviews are implementation of a Livelihood recommended, and in-depth reviews of 6 Restoration Plan. months progress, consistent with the overall project scheduling, are critical.

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ESMF Nigeria Solar IPP Program (January 2019) 13.7 Compensation Framework Compensation refers to payment in cash or in kind for loss of land, access to land, and immoveable asset or resources that is acquired or affected by a sub-project. 13.7.1 Compensation Principles The main compensation principles include the following: ▪ Provide transparent, fair and timely compensation (prior to land clearance or taking land) for displacement, including compensation for assets in accordance with national regulations and international standards, specifically the IFC’s PS5 and AfDB OS2; ▪ Compensate for lost assets at full replacement value; and ▪ Restore the livelihoods and welfare of PAPs and local communities such that their well-being is at the least, equal to their pre-resettlement conditions, or that they are better off.

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Table 13.2. Categories of PAPs and compensation according to Nigeria guideline and International Guidelines

Category of S/N Nigeria Law World Bank/IFC/AFC/GCF AfDB PAPs Entitled to compensation for land, priority is given to land-to-land compensation and/or compensation- in-kind in lieu of cash compensation. When cash Recommends land-for-land Cash compensation payments are made, the affected people should be 1 Land owners compensation. Other compensation is based upon market value. provided with counselling to ensure that they have at replacement cost the knowledge to use the compensation wisely. Compensation for other assets at full replacement costs. Entitled to resettlement assistance and Entitled to compensation Are entitled to some form of compensation for all their assets such as crops, 2 Land Tenants based upon the amount of compensation whatever the legal structures and other livelihood activities at full rights they hold upon land recognition of their occupancy. replacement cost. Not entitled to compensation for land but are Not entitled to Entitled to compensation for crops, may entitled to resettlement assistance including Land compensation for land, be entitled to replacement land and 3 compensation for loss of livelihood activities, users/Squatters entitled to compensation income shall be restored to pre-project structures, crops etc to improve their former living for crops levels at least Standards. Owners of Entitled to in-kind compensation or cash These groups are entitled to resettlement assistance “Non- Cash compensation compensation at full replacement cost to improve their former living standards 4 permanent” based on market value. including labor and relocation (compensation for loss of livelihood activities, Buildings expenses, prior to displacement structures, crops etc.). Cash Compensation is Entitled to in-kind compensation or cash Owners of Entitled to resettlement assistance and based on market value. compensation at full replacement cost 5 “Permanent” compensation for all their losses at full replacement (that means depreciation including labor and relocation buildings costs before their actual move. is allowed) expenses, prior to displacement. Key objective is restoration of capacity Compensation factors in the “total economic cost” Losers of No consideration other to generate incomes at least at levels including the social, health, environmental and livelihoods than cash values for assets 6 prior to losses. Programs of assistance to psychological impacts of the sub-project and the (farmers, as described above by achieve this objective. Compensation displacement, which may disrupt productivity and business asset category for periods of lost income social cohesion. Considerations are given to the loss

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Category of S/N Nigeria Law World Bank/IFC/AFC/GCF AfDB PAPs people, of livelihood and earning potential of the affected employees people. Affected people are provided with targeted resettlement assistance with the aim of ensuring that their standards of living, income-earning capacity, production levels and overall means of livelihood are improved beyond pre-project levels. The grievance mechanism will be set up Requires the establishment of a as early as possible in the process, to a culturally appropriate and accessible grievance receive and address in a timely fashion and redress mechanism to resolve, in an impartial specific concerns about compensation and timely manner, any disputes arising from the and relocation that are raised by resettlement process and compensation procedure displaced persons and/or members of as early as possible in the resettlement process. The host communities, including a recourse No specific requirement for borrower or client is required to work with informally mechanism designed to resolve Grievance establishing an constituted local committees made up of 7 disputes in an impartial manner. The Procedure independent grievance representatives from key stakeholder groups and, in grievance mechanism, process, or mechanism particular, vulnerable communities to establish the procedure should address concerns grievance and redress mechanism. The grievance promptly and effectively, using an redress mechanism, which should be monitored by understandable and transparent an independent third party should not impede process that is culturally appropriate access to judicial or administrative remedies but must and readily accessible to all segments inform affected people about the Bank’s of the affected communities, at no cost Independent Review Mechanism (IRM). and without retribution Where compensation to an affected person in accordance with an approved resettlement plan has been offered, but the offer has been rejected, Rejection of 8 No categorical statement the taking of land and related assets No categorical statement Compensation may only proceed if the sub-project owner has deposited funds equal to the amount offered as compensation plus 10 percent in a secure form of escrow or

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Category of S/N Nigeria Law World Bank/IFC/AFC/GCF AfDB PAPs other interest-bearing deposit satisfying the Bank’s fiduciary requirements. The sub-project owner must also provide a means satisfactory to the Bank for resolving the dispute concerning the offer of compensation in a timely and equitable manners

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ESMF Nigeria Solar IPP Program (January 2019) 13.8 Eligibility Principles PAPs are eligible for compensation entitlements if they are the owners or users of immovable built or planted assets within the sub-pProject site footprint. This includes structures (such as fences or sheds), land, crops, trees, and other natural resources. PAPs are eligible for compensation for their assets if they have formal or recognisable rights to these assets. The typical eligibility criteria for compensation which may be implemented on sub-projects is presented in Table 13.3.

Table 13.3. Eligibility Criteria for Compensation

Eligible for PAP Classification Compensation No Compensation Assistance For land, assets, and Land or asset at replacement Assistance Those with legal right structure on the land cost needed after the cut-off date Those with temporary For land, assets, and Land and assets at Assistance or leased rights at cut- structure on the land replacement cost needed off date after the cut-off date Those who use land Assets on land at replacement Assets on land after Assistance without any form of cost cut-off date needed right Assets at replacement cost Those with no legally except that compensation may recognized right but Assistance be “topped off” to allow the arrived before cut-off needed PAP to acquire a new date. residence. Those who arrived None None None after Cut-off-date For business located Those with business Assets and lost income as a in community after Assistance located within the result of lost business during the cutoff date and needed Community project duration outside the affected area.

13.8.1 Establishment of Entitlement Cut-off Date Prior to the commencement of a census survey during the RAP/LRP preparation, consultations will be conducted to explain to PAPs that a last day of a census survey (to be carried out during the LRP stage) will constitute a cut-off date, after which any individual or a family who moved into the sub-project area but is not listed in the census list of PAPs, will not be entitled to compensation.

13.8.2 Entitlements Sub-projects will have defined range of appropriate compensation entitlements and suggested livelihood restoration measures. Based on the SES survey results,

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ESMF Nigeria Solar IPP Program (January 2019) the following categories of assets are likely to be affected by the sub-project: ▪ Farmland/land plots; and ▪ Crops and economic trees. ▪ Buildings (both makeshifts and permanent) ▪ Cultural, religious and community facilities ▪ Livelihood ▪ An example of an entitlement matrix which may be applicable to each of the sub-projects is presented the table below:

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Table 13.4. Example of an entitlement matrix that could be applied in sub-projects

Additional compensation or measures in line with IFC PS5 Asset Impact PAPs Nigeria Requirement Livelihoods Support and AfDB OS2

• Compensation at state • PAPs are consulted to Registered owners rates or support to find confirm their with title deed for replacement land of compensation land similar size and quality. preferences (land-for- land or cash). • Compensation at • Livelihood restoration replacement value (in- Land options to affected cash) or where possible, farmers: continuous crop replacement land of the cultivation on alternative same quality and close plots, agricultural skills to the location of the improvement training, or original land plot. Permanent/ small livestock package Non-registered • Livelihood restoration • Land Plot Transfer Temporary occupants of land • Compensated for lost and alternative income allowance - 10 % of land take who either assets other than land earning opportunities market value payment cultivate such land (such as crops and e.g. skills training offered. (as one-off) in cash, to based on structures) at • Support before, during cover all administrative customary replacement value. and after taking Crops and fees related to the ownership rights cultivated land plots to Economic purchase or provision of cover a reasonable Trees replacement land. period of time necessary

for PAPs to re-establish their new land plots (which they either were allocated, or bought with the received cash compensation).

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Additional compensation or measures in line with IFC PS5 Asset Impact PAPs Nigeria Requirement Livelihoods Support and AfDB OS2

• None (crops are • Crops-Training in • Cash compensation at typically harvested improved agriculture replacement value on prior to displacement) methods and seeds the basis of type, age • Compensation for provided for three Loss of crops and market price of tree All PAPs regardless perennial crops at seasons (18 months) and productive and crops (the of legal status existing compensation • Trees-Training in trees (fruit/nut) compensation amounts rates improved agriculture to be determined by a • Trees are categorised methods and saplings certified evaluator during as: saplings, provided for fruit trees the LRP stage) productive, or old. and perennial crops Tenants and • Cash compensation original owners of for loss of built-up the house and structures at full replacement costs. Loss of homes / land • Owners of affected • Housing unit at chosen dwellings structures will be relocation site; or • Compensation for loss of Physically Tenants allowed to take and • Cash compensation at livelihood or livelihood displaced reuse their replacement cost value; development support salvageable materials • Relocation assistance for economically Economically for rebuilding and Permanent such as transport of displaced displaced rehabilitation of loss of structure. belongings within 25 km • Transfer allowance to Structure Owners of the • In case of relocation, radius, etc. cover cost of shifting structure other transfer allowance to • One-time cash (transport plus than house, cover cost of shift assistance equivalent to loading/unloading) whether or not Tenants and (transport plus 4-month rent moving to personal effects paid on the land on original owners of alternate premise. actual cost basis or on which the loading/unloading) the structure and current market rates structure stands the effect and is legally land material will be paid occupied. on actual cost basis or Tenants on current market rates

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Additional compensation or measures in line with IFC PS5 Asset Impact PAPs Nigeria Requirement Livelihoods Support and AfDB OS2

Complete rehabilitation/ School, church, Cultural, restoration by the sub- Mosque, water Religious project; cash • Construction of structure channels, and compensation for restoring as other forms of • Additional monetary pathways, and All PAPs regardless community affected compensation by the incentives to succour other of their legal status structure cultural/community sub-project where losses community facilities structures and installation possible. structures to the recognize patron/ custodian. Special provision for Women • Needs based special vulnerable headed Women headed • Empowerment training to • Support before, during assistance to be PAPs household, household, be carried out alongside and after training. provided either in disabled or disabled or elderly cash support. Re- cash or in kind. elderly persons persons establishing and the and/or landless enhancing livelihood

Change in Vulnerable livelihood PAPs , Vulnerable PAPs Restoration of livelihood Needs based special Support before, during and for women particularly particularly (Vocational training) and assistance to be after training. and other women. women subsistence allowance provided as incentives. vulnerable @agreed rate per day Owners whose Aps that for a total of 6 month landholding need to while enrolled in a has been substitute vocational training reduced to less their facility than 5 acres income

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Additional compensation or measures in line with IFC PS5 Asset Impact PAPs Nigeria Requirement Livelihoods Support and AfDB OS2 because of Same as additional adverse compensation or measures. impact Cattle Rearers Relocation to new grazing Consider possible Cattle Rearers area where possible assist compensation for loss Loss of the cattle herdsmen to income for the period of grazing locate new grazing field. locating new grazing area area

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ESMF Nigeria Solar IPP Program (January 2019) 13.9 Entitlement Planning The entitlement planning process entailed two primary tasks: ▪ Preliminary identify the appropriate cash compensation rates at replacement value to compensate for specific impacts to eligible households, including crop compensation rates; and ▪ Design of complementary supportive measures to further mitigate the impacts of land-take, including livelihoods restoration initiatives, and vulnerable person assistance measures. To establish the applicable rates (which will be confirmed and verified by a certified evaluator during the LRP stage), an independent valuation expert will be contracted at the LRP stage to advise on the market values of affected land, crops and economic trees in the sub-project area. The evaluator will be requested to prepare a Valuation Report which will be presented as part of future LRP and included as an Annex in the main report.

13.10 Method of Compensation Individual and household compensation will be made in cash, in kind, and/or through assistance in the knowledge and presence of both man and wife and adult children or other relevant stakeholders where applicable. The type of compensation will be an individual choice although every effort will be made to instill the importance and preference of accepting in-kind compensation especially when the loss amounts to more than 20% of the total loss of productive assets. It should be noted that when land holdings necessary for the livelihood of affected persons are taken away or reduced in size by project works, the preferred form of compensation is to offer an equivalent parcel of land elsewhere, i.e. “land for land.” Where such land is not available, cash payment can be an option even though cash compensation is not the preferred form of compensation in such cases. It should be noted that, under this framework, cash compensation is only appropriate where there is a market for land or other lost assets in the area of the impact. It is unacceptable to offer cash compensation to, say, a farmer, when he/she has no possibility of acquiring new land in the same area.

13.11 Entitlement for Compensation Entitlements for compensation shall be based on the eligibility criteria and the various categories of losses identified in this RPF and the actual field consultations

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ESMF Nigeria Solar IPP Program (January 2019) during the preparation of the RAP/ARAP. Unless otherwise indicated, payment of compensation and other entitlements and the extension of assistance will be made to PAP households and individual PAPs, as the case may be. In dealing with compensation, preference shall be given to land based resettlement strategies for PAPs whose livelihoods are land-based Where sufficient land is not available at a reasonable price, non-land based options centered on opportunities for employment or self-re-employment should be provided in addition to cash compensation for land and other assets lost. However, this lack of land shall be documented and justified. Palliative assistance should be avoided, i.e. assistance that is not sustainable such as temporary payments or food donations.

13.12 Valuation Valuation methods for affected land and assets will depend on the type of asset. The following land asset types identified under Nigeria law in this policy framework include: 13.12.1 State (urban and non-urban) owned Land State owned land will be allocated free by the Governor or Local Government (perhaps except for processing and registration fees). The State Agency will be expected to pay compensation to acquire land in this category in cases where the state-owned land is being used by landlords or squatters, settled upon or otherwise being used.

13.12.2 Privately owned Land Privately owned property, will be acquired at replacement value. The guiding principle is that whoever was using the land to be acquired will be provided other land of equal size and quality or compensation. 13.12.3 Assets held under Customary Law According to Nigeria law, assets held under customary rights are in the Local Government jurisdictions only and will be valued according to the following method and compensation paid for. The sub-project will compensate assets and investments, including buildings, and other improvements, according to the provisions of the resettlement plan. Compensation rates will be replacement cost as determined by surveys of recent transactions of similar assets in the same area as of the date and time that the replacement is to be provided. Under customary law land belongs to chiefdoms, towns and villages. The permanent loss of any such land will be covered by community compensation, which will be in-kind only. A customary land owner or land user on state owned land will be compensated

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ESMF Nigeria Solar IPP Program (January 2019) for land, assets, investments, loss of access etc. at replacement rates at the time of the loss. 13.12.4 Method of Valuation In ensuring that during the project implementation, PAPs will be provided full replacement cost of lost structures and other impacted assets and are able to rebuild or replace their structures/assets without difficulties. The valuation will estimate asset compensation rates based on full replacement cost without depreciation. The replacement cost approach is based on the premise that the costs of replacing productive assets is based on damages caused by sub-project operations.

Relevant data to be captured during valuation will include: • Location details of the land, boundaries of the area/section of the land to be affected. Affected immovable properties: detailed measurement of buildings, shops, other assets, and structures; • Property details including noting accommodation, constructional details of affected property external works (fence walls, gates, pavements) affected details etc. were relevant. • Categorizing temporary structures based on constructional details (wall materials), size of structure and use of structure (business/residential/institutional/agricultural); and, Data on households affected (tenants, owners, relative apprentices/trainees and livelihood). Valuation shall be based on comparisons to recent comparable transactions/costs and comparable assets or land and not simply on general tables that may be out of date and may be based on non-comparable assets or land.

An indicative table with the Valuation Methods that could be used on sub- projects is presented in Table 13.5 below.

Table 13.5. Indicative Valuation Methods

Based on the open market Comparative Sales S/N Loss of Land value of comparable recent Method land transactions

Replacement Cost Method or Comparative Full replacement cost value Loss of Buildings, structures 1 Sales Method (which ever as if new, recent construction and other civil works gives a commensurate cost rates value)

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Loss of Business Income and Based on the average 2 Comparative Method Loss of Business Good will monthly net profit

Loss of Income from Rent Based on the comparable and Expenditure Incurred for Comparative Sales 3 rent passing, rent advance Alternative Accommodation Method paid during reinstatement period Expenditure incurred for Transfer of movable Based on truck/transport 4 Comparative Method properties and temporary hiring charges structures Loss of Wages, -Loss of Fees Based on Current Fees and 5 from Apprentice, - Loss of Comparative Method Wages Job Training Based on Crop Loss of access to land used compensation Resettlement 6 Comparative Method for agriculture assistance: Economic Rehabilitation assistance:

13.12.5 Arrangements for Compensation A Compensation and Relocation Committee will be set up and be responsible for planning, coordinating and monitoring of compensation and relocation activities. The compensation process for the sub-project will involve several steps to be carried out in accordance with the resettlement and compensation plan and the RAP. This will be in accordance with the individual sub-project resettlement and compensation plans as outlined below: 13.13 Public Participation This process seeks the involvement and concerns of the PAPs and the communities in a participatory approach with the sub-project, from the beginning to implementation. Public participation with local communities is an ongoing process throughout resettlement planning and this will have taken off at the screening stage. PAPs will be notified during the identification of sub-projects and consulted with as part of the screening process. The subsequent socio-economic survey will record all relevant information about the PAPs and ensure that this is accurately reflected in the RAP in order to allocate the appropriate compensation. Periodic monitoring will ensure that PAPs have been consulted and that compensation and relocation has been carried out satisfactorily. This will ensure that no affected individual household is simply “notified” one day that they are affected in this way.

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13.13.1 Notification Landowners will be notified by the Solar Power Developer that their property is required for development of the sub-project. The user will be informed through both a formal notification, both written and verbal, to be delivered in the presence of the community heads and the Coordination Committee. To ensure that any sensitive areas are accurately identified during this procedure, all necessary community heads, religious leaders, other elders and individuals will accompany the project team to the site. 13.13.2 Documentation of Holdings and Assets The Solar Power Developers and the local community will arrange meetings with the PAPs in the presence of the agency of government in charge of land to discuss the compensation process. For each individual or household affected, the project officials completes a compensation dossier containing necessary personal information on, the affected party and those individuals considered as household members, total land holdings, inventory of assets affected, and information for monitoring future arrangements. The dossier shall be confirmed and witnessed by village/community officials and will be kept up-to-date. This is necessary because it ensures monitoring of an individual over time. All claims and assets should be documented in writing. 13.14 Agreement on Compensation and Preparation of Contracts The types of compensation shall be clearly explained to the individual or household involved. The Solar Power Developer will draw up a contract, listing all property and/or land being surrendered, and the types of compensation (cash and/or in-kind). A person selecting in-kind compensation has an order form, which is signed and witnessed. The compensation contract and the grievance redress mechanisms are to be read aloud in the presence of the affected party and the representative of the local government chairman (or his/her representative), the project officials, and other community leaders prior to signing. 13.15 Compensation Payments All handing over of property such as land and buildings and compensation payments will be made in the presence of the affected party, representative of the state environmental agency and the community officials. 13.15.1 Community Compensation Payments Community compensation will be in-kind only for a community as a whole in the form of Corporate Social Responsibilities. Examples of community compensation include; School Building (public or religious), Public Toilets, Well or borehole, Market Place, Taxi Park, Road, Storage warehouse, etc. Community

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ESMF Nigeria Solar IPP Program (January 2019) compensation may in itself require land take and people may be affected, thus a change of impacts which will be compensated. 13.15.2 Procedures for Delivery of Compensation The procedure for delivery of compensation will be detailed in each RAP/LRP. The Solar Power Developer will follow approved procedures ensuring that: • Full payment of compensation is carried out before possession of acquired sites and before works begin. • Solar Power Developer formally make offers to affected persons and allow persons to accept or reject offer, offer a counter claim and seek redress under the grievance procedures established • Land/Asset valuation committee communicates the amount to be paid to the acquiring agency and the Ministry of lands will ensure that the amounts are fair and adequate. • Cheques in the name of the beneficiary or deposits to the beneficiary’s bank account shall be the preferred and first mode of payment. • Payments are made to the affected person personally in the presence of Land/Asset Valuation Committee and an independent witness of the affected person/opinion leader • Proper receipts are issued and copies given to the affected person, the Finance Department of the State Agency and the Land/Asset Valuation committee; • Comprehensive reports on payment made are submitted for review by Management of the PMUs and the Land/Asset Valuation committee. 13.16 Monitoring and Evaluation Monitoring is a crucial element for the success of any resettlement project as it is important to accurately verify the information related to implementation of the Resettlement Plan and should be planned and costed as early as possible in the sub-project. The monitoring will provide feedback to project management which will help keep the programs on schedule and successful. 13.16.1 Monitoring Process In order to comply with the Program E&S requirements, the overall internal monitoring procedures will include internal performance monitoring, Impact monitoring and final external evaluation.

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ESMF Nigeria Solar IPP Program (January 2019) 13.17 Livelihood Restoration The Livelihood Restoration Strategy (LRS) is to prevent and mitigate the potential adverse impacts to the vulnerable PAPs as a direct result of the resettlement process. 13.17.1 Key Principles Guiding Livelihood Restoration Planning The sustainable approach to livelihood restoration is based on the following principles: ▪ Livelihoods are multi-faceted strategies and a combination of approaches is therefore required to support restoration of income and the reestablishment of community support networks; ▪ Active participation of intended beneficiaries in planning and decision making to ensure proposed support reflects local realities / priorities and have PAPs active buy-in; ▪ PAPs should be provided with choices so that they can self-determine how their household will best benefit from the livelihood restoration options; ▪ Vulnerable households are, by definition, less able to adapt to changes and therefore require targeted support through the planning and implementation of livelihood restoration; ▪ Transition allowances are necessary, but require clear eligibility and end points; ▪ Capacity building should be incorporated into livelihood restoration activities to develop PAPs skills, including in agricultural practices. Capacity building acknowledges the different needs of women, men, youth and vulnerable groups with respect to skills development. 13.17.2 Process for Determining Livelihood Restoration Options The livelihood restoration options shall be based on the information gathered from the socio-economic baseline interviews undertaken for the Program. From these activities, the following key subjects may emerge. ▪ Livelihood options and roles varying for women, men and youth. ▪ PAP-welcome livelihood options and view them as part of their expectations of the Program’s development. Continuous Engagement should continue with PAPs and local communities throughout the sub-project life-cycle, and with traditional leadership and the relevant authorities to discuss the livelihood programmes to make sure that they are meeting the needs of PAPs.

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13.17.3 Livelihood Restoration Plans To recognize the potential and magnitude of adverse impacts and develop Livelihood Restoration Plans, the following approach should be considered: 1. LRP for vulnerable PAPs should refer to the ecological conditions, livelihoods and socio-cultural characteristics possessed by PAPs. 2. The LRP should be able to support the PAPs to gain a similar or even better livelihood, independently. It is important that the land acquisition and resettlement process will not cause a dependency to the sub-project which eventually would make more problems in the future. 3. The LRP should be focused on the characteristics of the vulnerability and potential sources of livelihood assets owned by each household, either in the form of Natural Capital, Human Capital, Financial Capital, Social Capital and Physical Capital. 4. Involving representatives of both communities, the PAPs and host populations, in the consultation process to build familiarity and to resolve disputes that are expected to arise during and after the resettlement process. 13.18 Resettlement Action Plan 13.18.1 Introduction The OS 2 requires the borrower or client prepares a Full Resettlement Action Plan (FRAP) for the following nature of displacement: i. any project that involves 200 or more persons (as defined by the involuntary resettlement policy), or ii. any project that is likely to have adverse effects on vulnerable groups. The outline of a typical RAP can be found in Annex A of the Involuntary Resettlement policy and the related IESIA Guidance Note. For any project in which the number of people to be displaced is fewer than 200 people and land acquisition and potential displacement and disruption of livelihoods are less significant, the borrower or client prepares an Abbreviated Resettlement Action Plan (ARAP). Annex B of the Involuntary Resettlement policy describes an ARAP, and related guidance can also be found in the relevant IESIA Guidance Note. The sub-projects within the Program will principally result in economic displacement and the outcome of an RAP is presented at the end of this RFP. For each sub-project, a specific RAP commensurate to the scale of the physical or economic displacement will be prepared.

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13.18.2 Outline of a RAP S/No Chapter Description • Define the Project, and its components and the Project Site (s) • Determine whether the Project will require land acquisition and relocation of persons Description of the 1 • Describe the amount of land acquisition and resettlement Project required • Identify options of reducing amount of resettlement • Quantify the options of minimizing resettlement • Description of project components that can give rise to resettlement 2 Potential Impacts • Detailed description of impacts and alternatives considered to minimize resettlement • Identification of institutions for execution of the RAP • Evaluation of capacity and commitment of such institutions to carry out resettlement plan Organizational 3 • Consideration for strengthening institutions and steps to be responsibility taken together with timetable for implementation and budget • Involvement of local people and CSOs in planning implementation and monitoring of resettlement • Detailed description of consultation and participation of displaced and host communities in design and implementation of the resettlement activities. • Details of views expressed and how they were taken into account during preparation of resettlement plan Community 4 • A review of resettlement alternatives presented and choices Participation made by displaced person including compensation and resettlement assistance • Description of procedure for redress of grievances by project affected people which shall be accessible throughout planning and implementation • Details of consultations with host communities and local governments and arrangements for prompt tendering of any payments due to host for land and other assets Integration with 5 • Details of addressing any conflict between resettlers and host Host Community community (if any) • Details of efforts made to augment public services e.g. water, education, health etc. • Population census covering affected community/individual and their assets. Baseline information on livelihoods and standards of living of the displaced population • Inventory of assets of displaced households, extent of physical and economic displacement. • Information on disadvantaged groups or persons whom special Socio-Economic 6 provisions may have to be made Studies/Census • Updated information on displaced person’s livelihood and standards of living at regular intervals • Description of land tenure system in place, lot sizes and any cultural heritages/values that may be restricted by the project • Description of type and size of infrastructure and other services that may be impacted

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S/No Chapter Description • Summarize impacts of the project for each categories of affected groups • Social and cultural characteristics of displace communities • Details of local agencies responsible for resettlement Legal/Institutional • Details of applicable legal and administrative procedures Framework, including a description of the remedies available to displaced including persons in the judicial process 7 mechanisms for • Details of laws and regulations relating to agencies responsible conflict resolution for implementing resettlement activities. and appeal • Details of legal steps necessary to ensure the effective implementation of resettlement activities • Details of agencies responsible for resettlement activites and Institutional 8 NGOs that may have role in project framework • Details of institutional capacity of agencies and CSOs • Definition of displaced persons and criteria for determining Eligibility and 9 eligibility for compensation and other resettlement assistance. Entitlements • Details of cut-off date • Appoint Registered/District Valuer for compensation purposes • Carry out consultation with affected persons Valuation of, and • Identify and inspect affected assets for valuation 10 compensation for • Process Valuation Report and prepare Compensation Schedule losses • Determine whether additional income assistance is necessary • Details of methodology used for valuation • Determine need for relocation and discuss with affected person • Select site for relocation and make arrangement for land titling in favour of resettlers • In consultation with respective District Settlement Planning • Department, prepare Resettlement Plan Identification and • Discuss outsourced services if any and draw up cost implications selection of • Ensure Plan comply with environmental consideration 11 resettlement site, • Evaluate the impact of the Plan on host community site preparation • Determine any special assistance measures necessary to and relocation. vulnerable groups • Identify risks associated with the Plan and chart out ways of overcoming them • Provide information on updating of the Plan • Details of legal arrangements for regularizing tenure and transferring titles to resettlers Shelter, • Details of social development services planned to be 12 Infrastructure and implemented for host communities social services Environmental • Details of environmental impacts of proposed resettlement and 13 protection mitigation measures • Details of implementation schedule for resettlement from Implementation 14 preparation to final implementation including target dates for schedules achievement of expected benefits to resettlers • Prepare a financial plan with emphasis on responsibilities and accountability • List sources of funds • Identify components of the sub-project that may require 15 Costs and Budget additional external funding • Discuss provisions for handling price fluctuations, contingencies and excess expenditure • Prepare a template for Project Cost Estimate/budget

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S/No Chapter Description • Discuss measures for external and internal monitoring • Define monitoring indicators Monitoring and 16 • Determine mode and frequency of reporting and content of Evaluation internal monitoring • Discuss feedback mechanism

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