ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF) Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Government of Republic of North Macedonia Environmental and Social Management Framework Public Disclosure Authorized Public Sector Energy Efficiency Project October 2019 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF) Government of Republic of North Macedonia Environmental and Social Management Framework Public Sector Energy Efficiency Project October 2019 Prepared by: Katarina Georgievska Environmental Consultant, MSIP/MSIP2 [email protected] and Tanja Tomic Social and Gender Equality Expert, MSIP/MSIP2 [email protected] Page 2 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF) Contents List of Abbreviations ................................................................................................................................................. 6 Executive Summary ................................................................................................................................................... 8 PART 1: Introduction ............................................................................................................................................. 12 1.1 Purpose of the ESMF .................................................................................................................................... 12 1.2 Rationale for the ESMF ................................................................................................................................ 12 1.3 Approach and Methodology for Preparation of ESMF ........................................................................... 13 1.4 Project Description ........................................................................................................................................ 13 Part 2: Baseline Environmental and Social Data ................................................................................................ 18 2.1 Background Information about North Macedonia .................................................................................. 18 2.2 Baseline Environmental Data ...................................................................................................................... 19 2.3 Baseline Social Data ....................................................................................................................................... 30 PART 3: Description of the Administrative, Policy and Regulatory Framework ......................................... 47 3.1. Legal Framework .......................................................................................................................................... 47 3.2 National Environmental and Social Policy ................................................................................................ 56 3.3 Relevant Environmental and Social Institutional Set Up ........................................................................ 58 PART 4: World Bank Environmental and Social Management Framework and Relevant Standards (ESS) ........................................................................................................................................................................... 64 4.1 ESS 1: Assessment and Management of Environmental and Social Risks and Impacts .................... 64 4.2 ESS 2 – Labor and Working Conditions .................................................................................................... 65 4.3 ESS 3 – Recourse and Efficiency, Pollution Prevention and Management .......................................... 65 4.4 ESS 4 – Community Health and Safety ...................................................................................................... 65 4.5 ESS 5 – Land Acquisition, Restrictions on Land Use, and Involuntary Resettlement ....................... 66 4.6 ESS 6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources ..... 66 4.7 ESS 7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities ......................................................................................................................................................... 66 4.8 ESS 8 – Cultural Heritage ............................................................................................................................ 67 4.9 ESS 9 – Financial Intermediaries ................................................................................................................ 67 4.10 ESS 10 – Stakeholder Engagement and Information Disclosure ......................................................... 68 PART 5. Potential Environmental and Social Risks and Impacts ................................................................... 69 5.1 Positive Impacts ............................................................................................................................................. 69 5.2 Adverse Environmental Risks and Impacts .............................................................................................. 70 5.3 Adverse Social Risks and Impacts ............................................................................................................... 73 PART 6. Environmental and Social Risk Management ..................................................................................... 75 ESS 1: Assessment and Management of Environmental and Social Risks and Impacts .......................... 75 ESS 2 – Labor and Working Conditions .......................................................................................................... 76 Page 3 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF) ESS 3 – Recourse and Efficiency, Pollution Prevention and Management ................................................ 77 ESS 4 – Community Health and Safety ............................................................................................................ 79 ESS 5 – Land Acquisition, Restrictions on Land Use, and Involuntary Resettlement ............................. 79 ESS 6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources ........... 80 ESS 7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities ......................................................................................................................................................... 80 ESS 8: Cultural Heritage .................................................................................................................................... 80 ESS 10 – Stakeholder Engagement and Information Disclosure ................................................................. 81 PART 7. Public Sector Energy Efficiency Project ESMF Implementation Arrangements ......................... 83 7.1 Project Implementation Unit ....................................................................................................................... 83 7.2 Project Coordination Committee ................................................................................................................ 83 7.3 Project Participants and Beneficiaries ....................................................................................................... 84 7.4 Contractors and Consultants ....................................................................................................................... 84 7.5 Auditing ........................................................................................................................................................... 93 7.6 Monitoring Frequency .................................................................................................................................. 94 7.7 Compliance Reporting .................................................................................................................................. 94 7.8 Contractor Training ...................................................................................................................................... 95 7.9 Incidents .......................................................................................................................................................... 95 7.10 Grievance Redress Mechanism .................................................................................................................. 96 7.11 Institutional Capacity and Capacity Building ......................................................................................... 96 List of Appendices .................................................................................................................................................... 99 ANNEX 1: Environmental and Social Commitment Plan (ESCP) ................................................................ 100 ANNEX 2: Stakeholder Engagement Plan (SEP) ............................................................................................. 100 Appendix 1: ............................................................................................................................................................. 101 Situation Analysis of Legal, Policy and Institutional Framework for Energy Efficiency in North Macedonia ............................................................................................................................................................... 101 Appendix 2: ............................................................................................................................................................