Grant Recipient: Royal Government of Bhutan Project Implementing Entity: Druk Green Power Corporation Limited Sustainable Hydropower Development Project (P174327) Updated ENVIRONMENTAL and SOCIAL COMMITMENT PLAN (ESCP) July 17, 2023 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Royal Government of Bhutan (the Recipient) is implementing the Bhutan Sustainable Hydropower Development Project (the Project), with the involvement of the Druk Green Power Corporation Limited (DGPC) as the implementing entity and the Department of Energy of the Ministry of Energy and Natural Resources, as set out in the Grant Agreement and the Project Agreement. The International Bank for Reconstruction and Development/International Development Association (the World Bank) has agreed to provide the original financing and additional financing (P174327) for the Project, as set out in the referred agreements. This Environmental and Social Commitment Plan (ESCP) supersedes previous versions of the ESCP for the Project and shall apply both to the original and the additional financing for the Project referred to above. 2. The Recipient shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESSs) and this ESCP, in a manner acceptable to the World Bank. The ESCP is a part of the Grant Agreement and the Project Agreement. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the referred agreements. 3. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Recipient shall carry out or cause to be carried out, including, as applicable, the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and grievance management. The ESCP also sets out the environmental and social (E&S) instruments that shall be adopted and implemented under the Project, all of which shall be subject to prior consultation and disclosure, consistent with the ESS, and in form and substance, and in a manner acceptable to the World Bank. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by the World Bank. 4. As agreed by the World Bank and the Recipient, this ESCP will be revised from time to time if necessary, during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to Project performance. In such circumstances, the Recipient, through DGPC and the World Bank agree to update the ESCP to reflect these changes through an exchange of letters signed between the World Bank and Recipient managing director of DGPC. The Recipient shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Bhutan Sustainable Hydropower Development Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY MONITORING AND REPORTING A REGULAR REPORTING Prepare and submit to the World Bank regular monitoring reports on Submit quarterly reports to the World Bank Druk Green Power Corporation Limited the environmental, social, health and safety (ESHS) performance of the throughout Project implementation. Submit Technical Assistance (TA) project, including but not limited to the each report to the World Bank no later implementation of the ESCP, status of preparation and implementation than 45 days after the end of each of E&S documents required under the ESCP, stakeholder engagement reporting period. activities, and functioning of the grievance mechanism. B INCIDENTS AND ACCIDENTS Promptly notify the World Bank of any incident or accident related to Notify the World Bank no later than 48 Druk Green Power Corporation Limited the TA Project which has, or is likely to have, a significant adverse effect hours after learning of the incident or on the environment, the affected communities, the public or workers, accident. including, inter alia, cases of sexual exploitation and abuse (SEA), sexual harassment (SH), and accidents that result in death, serious or multiple Provide subsequent report to the World injury. Provide sufficient detail regarding the scope, severity, and Bank within a timeframe acceptable to the possible causes of the incident or accident, indicating immediate World Bank. measures taken or that are planned to be taken to address it, and any information provided by any contractor and supervising entity, as appropriate. Subsequently, as per the World Bank’s request, prepare a report on the incident or accident and propose any measures to prevent its recurrence. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE Maintain the Project Implementation Unit (PIU) with qualified Maintain the Environmental Specialist and Druk Green Power Corporation Limited Environmental Specialist and Social Development Specialist to support Social Development Specialist of the PIU as the assessment and management of E&S risks for the TA project. set out in the Grant Agreement throughout Project implementation. 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Bhutan Sustainable Hydropower Development Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 1.2 ENVIRONMENT AND SOCIAL PANEL OF EXPERTS Maintain an independent Environmental and Social Panel of Experts Maintain the ESPoE throughout Project Druk Green Power Corporation Limited (ESPoE) acceptable to the World Bank. The ESPoE will be comprised of a implementation. highly qualified and competent Environmental Specialist and a Social Development Specialist with experience in advising and assessing risks and impacts of hydropower projects. 1.3 MANAGEMENT TOOLS AND INSTRUMENTS Implement E&S activities of the TA according to the approved TORs for Throughout the implementation of the TA. Druk Green Power Corporation Limited the updating of the Environmental and Social Impact Assessment (ESIA) and Environmental and Social Management Plan (ESMP), including Cumulative Impact Assessment (CIA). 1.4 ENVIRONMENTAL AND SOCIAL ASSESSMENT Update the ESIA and ESMP, including integrating pertinent parts of the Updated ESIA/ESMP to be finalized, Druk Green Power Corporation Limited CIA into the ESIA, according to the TOR agreed in 1.3 above. approved and disclosed prior to the end of the TA Project Disclose acceptable draft E&S documents (ESIA, ESMP, Resettlement Plan (RP), Stakeholder Engagement Plan (SEP)) for stakeholder consultations further outlined in section 10.3 of ESS10. 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Bhutan Sustainable Hydropower Development Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 1.5 ENVIRONMENTAL AND SOCIAL INSTRUMENTS a) Develop an ESMP for the TA activities such as geotechnical a) Prior to conducting the TA activities Druk Green Power Corporation Limited, investigations, etc. under Component 1 Studio Pietrangeli and ARTELIA b) Carry out environmental and social planning based on the updated b) Acceptable drafts to be disclosed for ESIA, and in line with relevant domestic laws and ESF. Environmental consultations and thereafter finalized, Druk Green Power Corporation Limited and social Instruments to be updated/prepared include: approved and redisclosed prior to the end • ESIA and ESMP including gender and vulnerability action plan, of the TA Project. gender-based-violence (GBV) action plan, etc. • Cumulative impact assessment (CIA) • Labor Management Procedure • Resettlement Plan • Stakeholder Engagement Plan • Environmental and Social Management Framework (ESMF) for the transmission line 1.6 INSTITUTIONAL CAPACITY ASSESSMENT a) Implement, as part of the ESIA TOR detailed in section 1.3, a) Throughout the implementation of the Druk Green Power Corporation Limited requirements for an institutional capacity assessment of DGPC in terms TA. of environment, social, health and safety staffing, capacity and performance, and environmental and social management system. b) As part of the ESIA/ESMP for the Dorjilung HPP, prepare an b) To be delivered by the end of the TA. Environmental and Social Capacity Assessment and Capacity Building Action Plan consistent with the requirements of the ESF, in a manner acceptable to the World Bank ESS 2: LABOR AND WORKING CONDITIONS 5|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Bhutan Sustainable Hydropower Development Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 2.1 LABOR MANAGEMENT PROCEDURES a) The TA Project will not involve any civil works. Therefore, a Labor a) Maintain the signed contracts of the Druk Green Power Corporation Limited Management Procedure (LMP) related to contracted workers are not project workers, consistent with ESS2 relevant as there will be no contracted workers to employed. The TA requirements, throughout implementation Project activities will require services of direct workers such as of the TA. consultants to carry out the updating of feasibility studies and ESF documents. For this, the contracts for the consultants and other direct workers will ensure that relevant aspects of ESS2 apply to TA Project b) The LMP will be developed as soon as workers, as appropriate, in accordance with the type of workers involved possible, but no later than by the end of the in the TA Project, including, inter alia, by adopting and enforcing TA. contracts that include clear terms and conditions of employment, and adequate occupational, health and safety measures. b) As part of the TA project, a draft LMP will be prepared for the Dorjilung HPP. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS a) The existing Grievance Redress System of DGPC will be applied to direct a) Maintained throughout implementation Druk Green Power Corporation Limited workers to be employed under the TA Project. of the TA. b) Develop a Grievance Mechanism for project workers as part of the LMP b) Developed as part of the LMP to be for the Dorjilung HPP. prepared as part of action 2.1 b. 6|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Bhutan Sustainable Hydropower Development Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 2.3 OCCUPATIONAL HEALTH AND SAFETY (OHS) MEASURES a) For the TA project, the contracts for the consultants and other direct a) Maintained throughout implementation Druk Green Power Corporation Limited workers will ensure that relevant aspects of ESS2 apply, including, inter of the TA alia, adopting clear terms and conditions of employment, and adequate OHS measures. b) OHS measures for the TA activities under Component 1 are included b) Prior to conducting the TA activities Druk Green Power Corporation Limited, in the ESMP to be prepared under action 1.5a above. under Component 1 Studio Pietrangeli and ARTELIA c) As part of updating the ESIA/ESMP to be supported by this TA project, c) To be delivered by the end of the TA. Druk Green Power Corporation Limited prepare an OHS plan consistent with the assessments conducted in the E&S documentations and consistent with the World Bank Group Environmental Health and Safety Guidelines (EHSGs) and Good International Industry Practice. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT Develop resource efficiency and pollution prevention and management To be delivered by the end of the TA. Druk Green Power Corporation Limited plan (including construction resource material management, disposal and management of waste and hazardous materials) for the Dorjilung HPP as part of the updated ESIA/ESMP to be prepared with the support of the TA. Conduct a greenhouse gas emissions analysis as part of the ESIA update. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 TRAFFIC AND ROAD SAFETY: Develop measures and actions to assess and manage traffic and road To be developed by the end of the TA, and Druk Green Power Corporation Limited safety risks as part of the ESMP for the Dorjilung HPP. included in the ESMP 7|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Bhutan Sustainable Hydropower Development Project 4.2 COMMUNITY HEALTH AND SAFETY (CHS) a) Prepare measures and actions, as part of the ESMP, to assess and a) To be completed and delivered by the end Druk Green Power Corporation Limited manage specific risks and impacts to the community arising from the of the TA which will be annexed to the Dorjilung HPP. ESIA/ESMP b) CHS measures for TA activities under Component 1 will be included in b) Prior to conducting the TA activities Druk Green Power Corporation Limited, the ESMP to be prepared under action 1.5a above. under Component 1 Studio Pietrangeli and ARTELIA 4.3 GENDER-BASED VIOLENCE (GBV) AND SEXUAL EXPLOITATION AND ABUSE/SEXUAL HARASSMENT (SEAH) RISKS Prepare a GBV Action Plan to assess and manage the GBV/SEAH risks as To be completed and delivered by the end of Druk Green Power Corporation Limited part of the ESMP for the Dorjilung HPP. the TA. 4.4 SECURITY PERSONNEL This is not applicable for the TA project as there will be no security personnel to be employed during the implementation of the TA. As part of the ESIA/ESMP for the Dorjilung HPP, prepare a Security To be completed and delivered by the end of Druk Green Power Corporation Limited Personnel Management Plan consistent with the requirements of ESS4, the TA. in a manner acceptable to the World Bank 4.5 DAM SAFETY a) Maintain the Engineering and Dam Safety Project Review Panel a) Throughout implementation of the TA Druk Green Power Corporation Limited acceptable to the World Bank to advise DGPC on dam safety measures, project design, and plans. b) To be completed and delivered by the end b) Prepare the following plans and framework documents for the of the TA. Dorjilung HPP including: • construction supervision and quality assurance plan • outline of an operations & maintenance plan • framework for emergency preparedness plan and, • framework for an instrumentation plan ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT 8|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Bhutan Sustainable Hydropower Development Project 5.1 RESETTLEMENT PLANS: Update the RP of the proposed Dorjilung HPP in accordance with ESS 5 To be completed and delivered by the end of Druk Green Power Corporation Limited and the approved TOR under action 1.3 above. the TA. 5.2 GRIEVANCE MECHANISM Develop an overall grievance redress mechanism for the Dorjilung HPP To be developed and delivered by the end Druk Green Power Corporation Limited following the approved TOR under action 1.3 above and document it in of the TA. the Stakeholder Engagement Plan. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 BIODIVERSITY RISKS AND IMPACTS Conduct, following the approved ESIA TOR detailed in section 1.3, an Throughout the implementation of the TA. Druk Green Power Corporation Limited aquatic and riparian assessment and terrestrial biodiversity assessment, including critical habitat assessment. 6.2 BIODIVERSITY MANAGEMENT PLAN Druk Green Power Corporation Limited Prepare a Biodiversity Management Plan in accordance with the To be completed and delivered by the end requirements of ESS6 as detailed in the ESIA TOR in 1.3 above. The of the TA. outputs of the biodiversity assessments will be integrated into the ESIA/ESMP. The CIA will also be updated based on any new or additional information on aquatic and terrestrial biodiversity. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 7.1 INDIGENOUS PEOPLES PLAN As part of updating the ESIA, assess whether there are indigenous The analysis and planning if required will be Druk Green Power Corporation Limited people, per the definition of ESS7, in the project area and recommend completed and delivered by the end of the whether ESS7 will be relevant to the Dorjilung HPP. If considered TA. relevant, an indigenous people plan will be developed for Dorjilung HPP, in line with relevant domestic laws and ESS7. 7.2 GRIEVANCE MECHANISM If ESS7 is determined as relevant, the project grievance redress To be delivered by the end of the TA Druk Green Power Corporation Limited mechanism in the SEP will be updated to include considerations and depending on the outcome of 7.1. measures specifically tailored for engagement with indigenous communities. ESS 8: CULTURAL HERITAGE 9|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Bhutan Sustainable Hydropower Development Project 8.1 CULTURAL HERITAGE RISKS AND IMPACTS Update the analysis of impacts of the Dorjilung HPP on tangible and To be completed and delivered by the end of Druk Green Power Corporation Limited intangible cultural heritage as part of the ESIA and in line with relevant the TA. domestic laws and ESF and develop a Cultural Heritage Management Plan and a chance finds procedure as part of the ESMP to be developed in accordance with the approved TOR under action 1.3 above, and consistent with ESS8. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION a) For the TA project, ensure that technical assistance provided a) Maintained throughout the Druk Green Power Corporation Limited incorporates stakeholder engagement and information disclosure in a implementation of the TA manner consistent with ESS10, including the preparation of a SEP for the Dorjilung HPP. b) Prepare and disclose an SEP for the proposed Dorjilung HPP. b) To be completed and delivered by the end of the TA. 10.2 PROJECT GRIEVANCE MECHANISM Design a grievance mechanism for the Dorjilung HPP and describe it in To be developed and delivered by the end of Druk Green Power Corporation Limited the SEP. the TA. 10.3 CONSULTATION ON E&S DOCUMENTS Conduct stakeholder consultations on all E&S documents (ESIA, ESMP, When draft documents are available and Druk Green Power Corporation Limited RP, SEP) that will be prepared under the TA project in line with the prior to finalizing the E&S documents. requirements of ESS10. Describe how the feedback of the stakeholders will be taken into account in the finalized version of the E&S documents. CAPACITY SUPPORT (TRAINING) CS1 TRAINING TO THE PROJECT IMPLEMENTING ENTITY Provide training to DGPC PIU staff on stakeholder mapping and Training to be delivered throughout the Druk Green Power Corporation Limited engagement, grievance redress mechanism, occupational health and implementation of the TA safety, specific aspects of supervising the environmental and social assessment and planning, and other aspects based on the agreed upon training plan by DGPC and the World Bank. 10 | P a g e ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Bhutan Sustainable Hydropower Development Project CS2 COMMUNITY AWARENESS Conduct community capacity building to heighten awareness of risks To be delivered throughout the Druk Green Power Corporation Limited and impacts and to mitigate impacts following the mechanism outlined implementation of the TA in the SEP 11 | P a g e