SFG3498 DEVELOPMENT BANK OF ETHIOPIA Public Disclosure Authorized Public Disclosure Authorized Carbon Initiative for Development (Ci-Dev) Component 3 of Ethiopia- Additional Financing for Energy Access Project Environmental and Social Management Framework (ESMF) For Public Disclosure Authorized Ethiopia Off-grid Renewable Energy Program and Ethiopia Clean Cooking Energy Program (Final) February 2017 Public Disclosure Authorized Addis Ababa, Ethiopia Environmental and Social Management Framework (ESMF) for Ethiopia Off-grid Renewable Energy Program (EOREP) and Ethiopia Clean Cooking Energy Program (ECCEP) Table of Contents LIST OF FIGURES ...........................................................................................................................................................IV LIST OF TABLES .............................................................................................................................................................IV LIST OF PLATES .............................................................................................................................................................IV LIST OF ANNEXES ...........................................................................................................................................................V LIST OF ACRONYMS ......................................................................................................................................................VI EXECUTIVE SUMMARY ................................................................................................................................................ VII 1. INTRODUCTION ......................................................................................................................................................... 1 1.1. BACKGROUND ............................................................................................................................................................. 1 1.2 OBJECTIVES ................................................................................................................................................................. 2 1.3 SCOPE .......................................................................................................................................................................... 3 1.4 RATIONALE .................................................................................................................................................................. 3 1.5 METHODOLOGY ........................................................................................................................................................... 4 2. RELEVANT POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORKS .............................................................................. 6 2.1 ETHIOPIA’S RELEVANT POLICY AND LEGAL FRAMEWORKS ......................................................................................... 6 2.1.1 The Constitution of the FDRE ............................................................................................................................... 6 2.1.2 Growth and Transformation Plan (GTP) II Related to Energy .............................................................................. 7 2.1.3 Relevant Policies of Ethiopia ................................................................................................................................ 8 2.1.3.1 Environment Policy of Ethiopia ....................................................................................................................................... 8 2.1.3.2 National Social Protection Policy of Ethiopia ................................................................................................................... 9 2.1.3.3 Ethiopian Water Resources Management Policy ............................................................................................................. 9 2.1.3.4 Energy Policy of Ethiopia ............................................................................................................................................... 10 2.1.4 Strategies ........................................................................................................................................................... 10 2.1.4.1 Conservation Strategy of Ethiopia ................................................................................................................................. 10 2.1.4.2 Ethiopia’s Climate-resilient Green Economy Strategy ................................................................................................... 11 2.1.5 Regulations, Proclamations and Procedural Guidelines .................................................................................... 11 2.1.5.1 Environmental Impact Assessment Proclamation (Proclamation No. 299/2002) ......................................................... 11 2.1.5.2 Environmental Pollution Control Proclamation (Proclamation No. 300/2002) ............................................................. 11 2.1.5.3 A Proclamation to Provide for the Establishment of Environmental Protection Organs (Proclamation No. 295/2002)12 2.1.5.4 A Proclamation to Provide for the Expropriation of Land Holdings for Public Purposes and Payment of Compensation (Proclamation No. 455/2005) .................................................................................................................................................... 12 2.1.5.5 Water Resources Management Proclamation (197/2000) ............................................................................................ 12 2.1.5.6 Proclamation on Research and Conservation of Cultural Heritage (No. 209/2000) ...................................................... 12 2.1.5.7 Labor Proclamations ...................................................................................................................................................... 13 2.1.5.8 Environmental Impact Assessment Procedural Guidelines Series (Series 1 and 2) ....................................................... 13 2.1.6 Administrative/Institutional Framework ........................................................................................................... 14 2.1.6.1 The Ministry of Environment, Forest and Climate Change ............................................................................................ 14 2.1.6.2 The Ministry of Water, Irrigation and Electricity (MoWIE) ............................................................................................ 15 2.1.6.3 Regional Environmental Organs .................................................................................................................................... 15 2.1.6.4 Institutional Aspects of Development Bank of Ethiopia (DBE) Related to the Programs .............................................. 15 2.2 APPLICABLE WORLD BANK SAFEGUARD POLICIES .................................................................................................... 16 2.2.1 Environmental Assessment (OP/BP4.01) ........................................................................................................... 16 2.2.2 Physical Cultural Resources (OP/BP4.11) ........................................................................................................... 17 2.2.3 Involuntary Resettlement (OP/BP4.12) .............................................................................................................. 17 3. DESCRIPTION OF THE PROGRAMS ........................................................................................................................... 19 3.1 BACKGROUND ............................................................................................................................................................ 19 3.2 OFF GRID RENEWABLE ENERGY PROGRAM ............................................................................................................... 20 3.2.1 Solar Lantern ...................................................................................................................................................... 20 3.2.2 Solar Home Systems (SHS) ................................................................................................................................. 21 3.2.3 Solar PV Mini Grid .............................................................................................................................................. 21 3.3 CLEAN COOKING ENERGY PROGRAM......................................................................................................................... 22 4. DESCRIPTION OF BASELINE ENVIRONMENTAL AND SOCIAL CONDITIONS ................................................................ 24 i Development Bank of Ethiopia Environmental and Social Management Framework (ESMF) for Ethiopia Off-grid Renewable Energy Program (EOREP) and Ethiopia Clean Cooking Energy Program (ECCEP) 4.1 AFAR NATIONAL REGIONAL STATE ........................................................................................................................... 24 4.1.1 Bio–Physical Environment .................................................................................................................................. 24 4.1.2 Social Issues ....................................................................................................................................................... 26 4.2 TIGRAY NATIONAL REGIONAL STATE .......................................................................................................................