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Table of Contents 105747 The Republic of Bulgaria Program for Results National Program for Energy Efficiency of Multifamily Buildings Environmental and Social Systems Assessment March 2016 1 Contents 1 SECTOR CONTEXT AND PROGRAMME DESCRIPTION ............................................................ 8 2 ENVIRONMENTAL AND SOCIAL SYSTEM ASSESSMENT ....................................................... 10 2.1 Scope .................................................................................................................................... 11 2.2 Methodology ........................................................................................................................ 13 3 PROGRAM DESCRIPTION ......................................................................................................... 14 3.1 Overview of the Program ..................................................................................................... 15 3.1.1 Eligible financing activities according to the requirements of the Program ......... 15 3.1.2 Identification of the environmental aspects of the program .................................. 15 4 KEY STAKEHOLDERS MAPPING .............................................................................................. 22 4.1 List of the key implementing agencies and partners involved in the Program according to the Methodological Guidelines of the National Energy Efficiency Program for Multifamily Buildings ......................................................................................................................................... 22 4.2 Roles and responsibilities of the key implementing agencies and partners involved in the program according to the Methodological Guidelines of the National Energy Efficiency Program for Multifamily Buildings ............................................................................................................... 22 4.2.1 Ministry of Regional Development and Public Works (MRDPW) ........................... 22 4.2.2 The Ministry of Finance (MoF) .................................................................................. 23 4.2.3 Bulgarian Development Bank (BDB) ......................................................................... 23 4.2.4 Municipal administrations ......................................................................................... 23 4.2.5 Regional governors ..................................................................................................... 25 4.2.6 House Owners Associations (HoAs) .......................................................................... 26 4.2.7 External contractors ................................................................................................... 26 4.3 Other relevant stakeholders for the environmental component of the Residential Energy Efficiency Program ......................................................................................................................... 27 4.3.1 Ministry of the Environment and Water (MoEW) .................................................... 28 4.3.2 Regional Inspectorates of Environment and Water (RIEW) ................................... 28 4.3.3 Executive Environment Agency (EEA) ....................................................................... 29 4.4 Other relevant stakeholders for the Residential Energy Efficiency Program’s social dimension ....................................................................................................................................... 29 4.4.1 Ministry of Labor and Social Policy (MLSP).............................................................. 30 4.4.2 General Labor inspectorate executive agency (GLIEA) ........................................... 30 4.4.3 Municipal departments and structures for social assistance and services ............ 30 5 PROGRAM’S POTENTIAL ENVIRONMENTAL BENEFITS, IMPACTS AND RISKS ................. 32 5.1 Potential environmental benefits as a result of the Program realization .............................. 32 5.2 Environmental Risks ............................................................................................................ 33 2 5.2.1 Methodology of the assessment of environmental risks ............................................... 33 5.2.2 Overall assessment of the likely environmental risks associated with the Program .... 36 6 PROGRAM’S POTENTIAL SOCIAL BENEFITS, IMPACTS, RISKS AND OPPORTUNITIES ..... 45 6.1 Social benefits and impacts .................................................................................................. 45 6.2 Social Risk Screening .......................................................................................................... 47 6.2.1 Land acquisition .......................................................................................................... 47 6.2.2 Grievance Redress Mechanisms ................................................................................... 47 7 ASSESSMENT OF THE PROGRAM ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM .............................................................................................................................................. 49 7.1 Assessment of the Program Environmental Management System ...................................... 49 7.1.1 Strategic Documents in the Field of Environment ................................................... 49 7.1.2 Overview of relevant environmental legislation for implementation of effective environmental safeguards policies.............................................................................................. 52 7.1.3 Environmental Standards and Practices ................................................................... 59 7.1.4 Adequacy of institutional organization and capacity, labor division and likelihood for the objectives of the applicable environmental management systems to meet their goals 60 7.1.5 Effectiveness of inter-agency coordination arrangements ..................................... 60 7.2 Assessment of the Program Social Management system ..................................................... 60 7.2.1 Overview of relevant social legislation guiding the Program ...................................... 60 7.2.2 List of relevant legislation for management of social impacts ................................ 60 7.2.3 Overview of the borrower’s past experience with similar programs .................... 61 7.2.4 Consultation Requirements ....................................................................................... 62 7.2.5 Oversight and Monitoring .......................................................................................... 64 8 Program Capacity and Performance Assessment .................................................................. 65 8.1 Human Resources/Staff ....................................................................................................... 65 8.2 Financial Resources for managing the social and environmental dimensions of the Program 67 8.3 Training ................................................................................................................................ 67 8.4 Effectiveness of inter-agency coordination arrangements where multiple agencies or multiple jurisdictions are involved ................................................................................................. 67 8.5 Performance of the implementing agency in ensuring that the rules and procedures are being followed ................................................................................................................................ 68 9 SUGGESTED AREAS OF IMPROVEMENT AND INPUTS TO PROGRAM ACTION PLAN ........ 69 9.1 Significant key gaps between Bulgarian environmental management systems and the PforR core principles. Key elements the area of improvement in Program implementation to fully comply with the national legislation and mitigate identified environmental risks ......................... 69 3 9.1.1 Summary of the key organizational, technical, or institutional measures agreed and those to be considered under the Program ..................................................................... 69 10 CONCLUSIONS ........................................................................................................................... 71 11 ESSA DISCLOSURE AND PUBLIC CONSULTATION (To be completed upon completion of the consultations) ............................................................................................................................. 72 12 ANNEXES ................................................................................................................................... 74 12.1 Annex 1 - Main environmental and social issues and risks for the PforR and proposed activities to address them ................................................................................................................ 74 12.2 Annex 2 - Public Consultation Process during the preparation of ESSA ............................ 76 12.3 Annex 3 – Question Form .................................................................................................... 79 12.4 Annex 4 – Implementation of Waste Management Legislation on Local Level ................. 82 12.5 Annex 5 – Stakeholder’s Capacity for the Implementation of the Environmental Management System on Local level ............................................................................................... 89 4 List of Tables Table 5-1 Envisaged drop/reduction in the generated
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