INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 04/30/2009 Report No.: AC4210 Public Disclosure Authorized 1. Basic Project Data Country: Mali Project ID: P108440 Project Name: Mali Energy Support Project Task Team Leader: Koffi Ekouevi Estimated Appraisal Date: April 9, 2009 Estimated Board Date: June 18, 2009 Managing Unit: AFTEG Lending Instrument: Specific Investment Loan Sector: Power (95%);General energy sector (5%) Theme: Infrastructure services for private sector development (P) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 120.00 GEF Amount (US$m.): 0.00 Public Disclosure Authorized PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 0.00 0.00 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] or OP 8.00 (Rapid Response to Crises and Emergencies) 2. Project Objectives The project development objective is to improve the access and efficiency of electricity Public Disclosure Authorized services in Bamako and in targeted areas outside of Bamako. This financing mainly for the extension and reinforcement of EDM SA transmission and distribution networks is crucial to enable Mali to fully capitalize on the additional thermal capacity under construction and expected gas generated power from Côted’Ivoire. The project will advance the GOM’s agenda of access expansion as electricity services will be provided to areas that currently receive inadequate or non-existent grid supply. The ultimate objective is to support the country’s shared-growth agenda enabling it to achieve its millennium development goals. 3. Project Description The project includes the following three components: Component 1: Transmission and distribution reinforcement and extension (US$107.0 Public Disclosure Authorized million). Assessment of the Mali power systems have revealed that the current medium voltage feeders in the Bamako area are inadequate to serve the rapidly growing urban population and distribution networks in many areas are already overloaded. This prevents the country from fully benefiting from the additional power supply expected by 2010 from increased thermal generation capacity and from regional interconnections thereafter. This component is mainly intended to finance (i) the rehabilitation of the 150 kV transmission line between Segou and Bamako to allow a reliable transit of high voltage power to Bamako; (ii) the construction of a 150 kV loop around Bamako to improve reliability of electricity supply to the Bamako area; (iii) the rehabilitation and extension of the distribution networks in Bamako to provide electricity access to growing quarters of the city; (iv) the expansion of grid access in main secondary towns (Kayes, Sikasso, Koutiala, Kati, and Mopti) and in the Niger River Irrigation Office area particulary in the localities of Siribala, Dougabougou, Sansanding, Molodo and Dioro; (v) the connection to the main grid of the localities of Ouléssébougou and Kangaba currently supplied by isolated diesel units Component 2: Energy efficiency and demand side management (US$5.0 million) : The key objectives of this component is to address the country’s energy security needs through the implementation of energy efficiency measures across various supply and demand side sector, including preparing a demand side management (DSM) program based on large scale deployment of energy efficiency lighting measures in the short-term. The implementation of this initiative is expected to reduce energy consumption and peak load demand thereby bringing direct benefits to households and other consumers (through lowered electricity bills) and the government (through deferred investment in electricity generation for new capacity and enhanced energy security). Furthermore, actions implemented under this initiative will help reduce local pollution and global GHG emissions. The component has four sub-components: (i) Energy Efficiency Residential and Public Buildings Lighting (distribution of about 1,000,000 CFLs); (ii) Efficient Street Lighting Program (installation of about 15,000 efficient lamps); and (iii) Technical Assistance to support the energy efficiency program. Component 3: Capacity and institutional strengthening of key sector institutions (US $8.0 million). The energy sector reform experience over the last five years indicates that more work is needed to strengthen the institutional, legal and regulatory environment and governance to foster an open business environment attractive to private investors and operators. This component is intended mainly to help GOM in its restructuring efforts of EDM SA by setting a minimum platform of technical and financial performance targets with monitoring indicators. In addition key sector institutions (DNE, CREE, MEME) will also be strengthened to improve sector planning, regulation, governance, fiduciary oversight, knowledge dissemination, monitoring and impact assessment. 4. Project Location and salient physical characteristics relevant to the safeguard analysis To date, it is known that the project activities will be mainly in urban areas of Bamako and selected isolated centers currently serviced by EDM SA with isolated thermal diesel units. However the precise locations of project sites and specific activities will only be confirmed during project implementation. 5. Environmental and Social Safeguards Specialists Mr Abdoul-Wahab Seyni (AFTCS) Ms Yvette Laure Djachechi (AFTCS) Mr Amadou Konare (AFTEN) 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: A. Summary of Key Safeguard Issues Overall, the project is expected to have positive environmental benefits. However potential impacts may include : soil erosion and degradation, habitat loss, habitats fragmentations or disturbance, noise pollution due to operating machinery, degradation of neighborhoods, avian hazards from transmission lines and towers, land acquisition, loss of livelihood and economic activities on the part of project affected people (PAPs). World Bank’s environmental and social safeguards will be complied with by EDM SA and other operators involved in electricity services delivery and demand-side energy management initiatives, using provisions of the ESMF and RPF. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: It is anticipated that there will be no cumulative adverse impacts. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Not applicable. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. An Environmental and Social Management Framework (ESMF) and a Resettlement Policy Framework were prepared and disclosed on November 14, 2008 in country on November 12, 2008 and at InfoShop on November 14, 2008. These documents were revised during appraisal and re-disclosed in country on April 24, 2009 and at the Infoshop on 29 April 2009. These two documents include measures for compliance with OP 4.01 and OP 4.12. An environmental safeguard assessment was conducted. Discussions with the borrower revealed that there is no structure to ensure environmental and social monitoring of the ESP activities. It was recommended the establishment in EDM SA of a sustainable Environmental and Social Unit (UES) by project effectiveness to provide EDM SA with more efficient coordination mechanisms for environmental and social activities. Environmental Focal Points will be established in the Planning Department and Central Electricity Department of EDM SA, as well as within the DNE. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Key stakeholders include: EDM SA, DNE, DNACPN and local communities. The ESMF and RPF were reviewed and cleared by the Bank and then disclosed in-country on November 12, 2008 and in the InfoShop on November 14, 2008. During implementation, these two safeguard instruments will serve as basis to screen all sub-projects. Based on the results of the screening, the Borrower will prepare sub-projects specific EIAs/EMPs, or apply mitigation measures provided in the checklist, whichever scenario is deemed appropriate. Similarly, in view of the potential land acquisition and/or loss of economic activities, the government will prepare the appropriate Resettlement Action Plan (RAP) following the guidelines of the Resettlement Policy Framework guidelines. Once completed, subproject-specific safeguard instruments will be reviewed, approved and disclosed prior to investment. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Yes Date