O;j-9 ENVIRONMENT DEPARTMENT 11:4 RIT26-1 150 Public Disclosure Authorized INTRODUCTION TO ENVIRONMENTAL AND SOCIAL ASSESSMENT REQUIREMENTS AND PROCEDURES FOR WORLD BANK-FINANCED PROJECTS Public Disclosure Authorized ,o'$ Public Disclosure Authorized ( -L Januaryl1997 FILE Public Disclosure Authorized COP Ad0bEnvironmentally Sustainable Development The World Bank I Introduction to Environmental and Social Assessment Requirements and Procedures for World Bank-Financed Projects Environment Department The World Bank January 1997 Copyright i) 1997 by The World Bank This publication was prepared by the Environment Department of The World Bank. The findings, interpretations and conclusions expressed in it do not necessarily represent the views of the Bank's Board of Executive Directors or the countries they represent. Readers of this booklet are permitted to reproduce, without charge copies of all or part of it for their own use and the use by organizations they belong to. In no case may copies be reproduced for sale, lease or other distribution for a charge nor may any person revise or otherwise change the work or produce derivative works based on it without prior permission. The Environment Department would appreciate receiving a copy of any publication that uses this publication as a source. 7 Printed on recycled paper. Questions should be forwarded to: Environment Department, The World Bank 1818 H Street, NW, Washington, D.C. 20433, USA Acknowledgments This booklet was prepared by Mr. Andrei D. Barannik of the Environment Department with significant comments and contributions made by staff throughout the Bank. This booklet was prepared within the development of the Environmental Management Capacity Building Project for the Republic of Uganda, for which Ms. Nathalie Johnson is the Task Team Leader. Ms. Cynthia Cook, Technical Manager, Environment, Africa Region, and Mr. Colin Rees, Division Chief, Land, Water, and Natural Habitats Division, provided overall guidance. Mr. Jim Cantrell produced typesetting, designed the booklet cover and final preparation of the booklet for publication. TABLE OF CONTENTS Foreword Rio Declaration on Environment and Development What is the World Bank? How does the World Bank Differ from the International Monetary Fund? World Bank Strategy for Sustainable Development Toward Environmentally Sustainable Development in Sub-Saharan Africa. A World Bank Agenda World Bank Organizational Responsibilities for Environmental Activities World Bank Project Cycle What is Successful Project Implementation? The Inspection Panel World Bank Public Information Center Conclusion List of World Bank Environment- Social-Related Operational Policies and Procedures Statements Contact Staff for the Republic of Zambia in the World Bank Africa Region Abbreviations/Acronyms Figures: Fig. I Organization Chart of the World Bank Fig. 2 Organizational Chart of the World Bank Africa Region Fig. 3 Organization Chart of the IFC Fig. 4 Organization Chart of the MIGA Fig. 5 The Active World Bank Environmental Portfolio Fig. 5A Environmental Projects-Africa Region Fig. 6 Formal Environmental Structure Chart of the World Bank Fig. 7 World Bank Project Cycle at a Glance Fig 7A The Project Cycle Documentation Fig. 7B The Implementation Cycle Fig. 7C Environmental Assessment and the World Bank Project Cycle Fig. 8 Environmental Assessment at the World Bank Fig. 9 PIC Locations Fig. 9A Documents available through the PIC Original Texts of World Bank Operational Policies and Procedures: OD 4.00. Environmental Policy for Dam and Reservoir Annexes B- B4: Projects OD 4.01: Environmental Assessment OP/BP/GP 4.02: Environmental Action Plans GP 4.03 Parts I - IV Agricultural Pest Management OP/BP/ GP 4.04: Natural Habitats OP 4.07: Water Resources Management OP 4.09 Pest Management OD 4.20: Indigenous Peoples OD 4 30: Involuntary Resettlement OP/GP 4.36: Forestry OP/BP/GP 7.50: Projects on Intemational Waterways -iv- OD 8.60 Adjustment Lending Policy OD 9.01 Procedures for Investment Operations under the Global Environment Facility OP/BP 10.04 Economic Evaluation of Investment Operations OD 14.70: Involving Nongovernmental Organizations in Bank-Supported Activities BP 17.50 Disclosure of Operational Information Documents of the Global Environment Facility: Investment for the Establishment of the Restructured Global Environment Facility The GEF Project Cycle Public Involvement in GEF-Financed Projects FOREWORD We are pleased to introduce this booklet, which is intended as an introduction to the World Bank Group in general and the Bank's environmental and social policies and activities in particular. Over the past 20 years, the World Bank's coverage of environmental and social issues has evolved considerably. Between 1987 and 1992, building on earlier preliminary work, Bank environmental and social work was characterized by a major focus on reducing potential harmful impacts of Bank-financed projects through the systematic application of environmental assessments (EAs) and codification of other environmental and social policies. From 1992 to 1995 the Bank environmental and social work expanded with targeted investments in the environment. At a total investment nearly $11 billion in 65 countries, these projects have made substantial progress in assisting the Bank's client countries address environmental and social concerns. Present Bank efforts are aimed at mainstreaming environmental concerns across the Bank's entire portfolio. Caring about the environment in Sub-Saharan Africa is not a luxury but a prime necessity because progress in African economies will depend heavily on natural resources. This is of particular importance in respect to the Bank's main goal of alleviating poverty because environmental degradation primarily affects the poor in both rural and urban areas. Reversing the downward spiral of environmental degradation must be a central element of any strategy to reduce poverty in Sub-Saharan Africa. Such a strategy requires every effort to maintain natural capital and to use it sustainably by promoting sound environmental management. The World Bank and its international partners cannot solve Ugandan environmental problems alone. Nor will the government. Ugandan people-individuals, households, communities, and the private sector-will be the critical actors. However, the World Bank and its partners can and must provide the necessary support. -vi- This booklet is intended to make readily available the lessons learned from the Bank's environmental and social experience. The overall goal is to help in-country project managers use EA and Social Assessment effectively to aid project design and implementation, and contribute to the environmental and social sustainability of the economic development in the Republic of Uganda. We are particularly grateful to the government of Denmark, which has contributed to financing the Seminar on Environmental Assessment Procedures between the World Bank and the Republic of Uganda that has led to the preparation of this booklet. We hope you find the booklet useful. Andrew D. Steer James W. Adams Director Country Director Environment Department Africa Region Rio Declaration on Environment and Development Principle 4 In order to achieve sustainable development. environmental protection shall constitute an integral part of the development process and cannot be considered in isolation from it. Principle 10 Environmental issues are best handled with the participation of all concerned citizens, at the relevant level. At the national level, each individual shall have appropriate access to information concerning the environment that is held by public authorities, including information on hazardous materials and activities in their communities. and the opportunity to participate in decision-making processes. States shall facilitate and encourage public awareness and participation by making information widely available. Effective access to judicial and administrative proceedings, including redress and remedy, shall be provided. Principle 15 In order to protect the environment, the precautionary approach shall be widely applied by States according to their capabilities. Where there are threats of serious irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation. Principle 17 Environmental impact assessment, as a national instrument, shall be undertaken for prQposed activities that are likely to have significant adverse impact on the environment and are subject to a decision of a competent national authority. 1 Adopted by UNCED at Rio de Janeiro, June 13, 1992 What is the World Bank? The International Bank for Reconstruction and Development (IBRD). frequently called the "World Bank," was conceived in July 1944 at the United Nations Monetary and Financial Conference in Bretton Woods. New Hampshire. U.S.A. The World Bank opened for business on June 25, 1946. The principle on which the Bank was founded was that many countries would be short of foreign exchange for reconstruction and development, but would not be sufficiently creditworthy to meet all their needs by borrowing commercially. As an official multilateral institution whose share capital was owned by countries in proportion to their economic size, the Bank would be able to intermediate by borrowing on world markets and lending more cheaply than commercial banks. It would also be able to exercise sound judgment about which projects to help finance. The current