NATIONAL ENERGY ACCESS AND TRANSFORMATION PROGRAM (NEAT) (P179380) ENVIRONMENTAL AND SOCIAL SYSTEM ASSESSMENT - ESSA October 2023 Table of Contents List of Acronyms ......................................................................................................................................................... i Executive Summary ................................................................................................................................................... ii Introduction ........................................................................................................................................................... ii 1 Program Description.......................................................................................................................................... 1 1.1 Background ................................................................................................................................................ 1 1.2 Government’s Program ............................................................................................................................. 2 1.3 Proposed MPA Program Development Objectives (PDO)........................................................................ 2 1.4 Proposed Program Development Objective ............................................................................................. 3 1.5 PDO Level Results Indicators..................................................................................................................... 3 1.6 Program for Results (PforR) Description .................................................................................................. 3 1.7 Institutional and Implementation Arrangements .................................................................................... 5 1.8 Results Monitoring, Evaluation, and Verification Agencies ..................................................................... 5 1.9 Disbursement Arrangements .................................................................................................................... 5 2 Environmental and Social Systems Assessment Scope and Methodology ..................................................... 7 2.1 Purpose and Objectives............................................................................................................................. 7 2.2 The ESSA Approach ................................................................................................................................... 7 2.3 The ESSA Methodology ............................................................................................................................. 8 3 Environmental and Social Benefits, Risks, And Impacts of the Program ........................................................ 9 3.1 Purpose of the Program and Exclusions ................................................................................................... 9 3.2 Environment & Social Risk Rating ............................................................................................................. 9 3.3 Exclusion Principle ..................................................................................................................................... 9 3.4 Program Beneficiaries .............................................................................................................................10 3.5 Potential Environmental, Social, Health, and Safety (ESHS) Benefits and Risks ...................................11 3.5.1 Potential Environmental, Social, Health and Safety Benefits ........................................................11 3.5.2 Potential Environmental, Health and Safety (EHS) Risks and Impacts ..........................................11 3.5.3 Potential Social Risks and Impacts ..................................................................................................12 4 National Environmental, Social, Health and Safety Management Systems Relevant to the Program ........18 5 Institutional Arrangements for the Management of Environmental, Social, Health and Safety (ESHS) for the Program .............................................................................................................................................................19 5.1 Institutional Framework for Environment, Health, and Safety Management Systems .......................19 5.2 Institutional Framework for Social Management Systems ....................................................................21 6 Capacity Assessment For Managing Program ESHSEffects ............................................................................23 6.1 Environmental, Health and Safety Management Systems ....................................................................23 6.1.1 National Environment Management Agency (ZEMA) ......................................................................23 6.2 Occupational Safety and Health Institute (OSHI) .....................................................................................25 6.3 Social Management Systems ..................................................................................................................26 6.3.1 The Gender Division under the Office of the President ...................................................................26 6.3.2 Department of Community Development (DCD) .............................................................................27 6.3.3 Department of Resettlement (DoR) .................................................................................................28 6.4 Program Implementing agencies ............................................................................................................28 6.5 ZESCO Organizational Structure for ESHS Risk Management ................................................................29 6.6 REA Organizational Structure for ESHS Risk Management ....................................................................30 7 Environmental, Social, Health and Safety Systems Assessment in Relation to the PforR Core Principles and Planning Elements ............................................................................................................................................32 8 Measures To Strengthen System And Institutional Performance .................................................................44 8.1 ESSA Findings ...........................................................................................................................................44 8.2 ESSA Recommendations..........................................................................................................................44 9 Annexes ...........................................................................................................................................................49 9.1 Annex 1: Relevant Policy, Legal, and Regulatory Framework for Environment, Social, Health and Safety Management ............................................................................................................................................49 9.2 Annex 2: List of Stakeholders Consulted during the ESSA Process ........................................................63 9.3 Annex 2 (a): List of Stakeholders who Provided Feedback on the Draft ESSA Report ..........................69 List of Tables Table 0-1: Proposed Environmental, Social, Health and Safety (ESHS) Program Action Plan ............................... vi Table 1-1 – Disbursement Link Indicators (DLIs) and Results for the Program ....................................................... 4 Table 3-1: ESHS Effects Associated with Program Activities Under the Key Results Areas .....................................14 Table 5-1: Institutional Framework for ESHS Management Under the NEAT Program...........................................19 Table 5-2:: Institutions responsible for Social Risk Management ............................................................................21 Table 7-1: ESSA Findings against the six Core Principles .........................................................................................33 Table 9-1 Table 0-1 Table 8-1:: Proposed Environmental, Social, Health and Safety (ESHS) Program Action Plan ..................................................................................................................................................................................47 Table 9-1: Country System (Policies, Regulatory and Legislative Frameworks) as Written and Relevance to the NEAT Program ..........................................................................................................................................................49 ESSA for Zambia NEAT Program List of Acronyms ADR Alternative Dispute Resolution AMI Advanced Metering Infrastructure DCD Department of Community Development DoR Department of Resettlement DOSHS Directorate of Occupational Health and Safety E&S Environmental and Social EHSRIM Environmental, Social, Health and Safety Risk and Impact Management EIA Environmental Impact Assessment ERB Energy Regulatory Board ESAP Energy Supply and Access Project ESF Environmental and Social Framework ESHS Environmental Social, Health and Safety ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMMP Environmental and Social Management and Monitoring Plan ESSA Environmental and Social System Assessment GBV Gender Based Violence GHG Greenhouse Gas GoZ Government of Zambia GRM Grievance Redress Mechanism IP Indigenous Peoples IPF Investment Project Financing LMC Last Mile Connectivity MLSS Ministry of Labour and Social Security TNA Training Needs assessment MoE Ministry of Energy MoLPP Ministry of Land and Physical Planning MPA Multi-phase Programmatic Approach NEAT National Energy Access and Transformation Program NT National Treasury OVI Objectively Verifiable Indicator OSHI Occupational Safety and Health Institute PAP Program Action Plan PDO Project Development Objective PforR Program for Results POM Program Operational Manual RAP Resettlement Action Plan REA Rural Electrification Authority RPF Resettlement Policy Framework SEA-H Sexual Exploitation and Abuse, and Harassment SEP Stakeholder Engagement Plan SH Sexual Harassment T&D Transmission and Distribution TA Technical Assistance ToR Terms of Reference VMGs Vulnerable and Marginalized Groups VRE Variable Renewable Energy WB World Bank ZEMA Zambia Environment Management Authority ZESCO Zambia Electricity Company i ESSA for Zambia NEAT Program Executive Summary Introduction The proposed Program is aligned with the Zambia Country Partnership Framework (CPF) FY2019-2023 that is in the process of being extended to FY2024. The overarching goal of the CPF is the diversification of Zambia’s economy so that it is more resilient and inclusive. The two revised focus areas for the CPF extension are: (i) increased resilience of rural households; and (ii) better job prospects especially for under-employed groups (including youth as well as women and girls). The proposed National Energy Access and Transformation (NEAT) Multiphase Programmatic Approach (MPA) is a Zambia-specific program that will return the sector to structural integrity so that it is able to engage in, support, and reap the benefits of other investment. With a focus on achieving financial sustainability and mainstreaming sustainable electricity access expansion mechanisms, the NEAT MPA aims to systematically tackle the underlying impediments to sector viability, change the paradigm for sector investment, and provide the framing around which other investments can be anchored. This is expected to include a series of Program-for- Results and IPF or Guarantee operations to ensure that reforms are implemented and institutionalized over the long term and, as the sector becomes viable once again, that private sector is mobilized on value-adding investments from debt refinancing to renewable energy generation. Multiphase Programmatic Approach (MPA) Program The Program Framework for the MPA seeks to implement the government strategic vision of increasing reliable electricity supply and expanding access to energy to spur inclusive economic growth. The MPA program framework creates the pathway for achievement of the vision. The MPA framework aligns with the government program for energy sector transformation in Zambia, built on four pillars namely, (i) Improved sector planning and optimized system expansion; (ii) Improved operation and financial performance of ZESCO and Rural Electrification Authority (REA); (iii) Increased access to electricity, and (iv) enabling environment for private sector participation. Proposed MPA Program Development Objectives (PDO) The Program Development Objective (PrDO) is to expand access to energy and improve financial sustainability of the sector with enhanced supply reliability by increasing private sector participation in renewable energy solutions. The Program Outcome indicators (PrDO indicators) • People provided with new or improved electricity services (number) • ZESCO cost recovery (percentage); • Reliability of electricity supply (SAIFI/CAIDI); and • Non-hydropower renewable energy capacity procured (MW). The PforR Program The PforR (Phase 1) focuses on the 2023-26 time-slice of the government program, with disbursement linked indicators associated with the short-term foundational priorities for sector transformation. Figure 4 below presents the program boundary for Phase 1 of the PforR within the MPA framework and the government program. The Program supports 2023-26 priority actions identified in the government program, aligned with the four MPA pillars namely, optimized system planning and expansion; (ii) Improved operation and financial performance of ZESCO; (iii) Increased access to electricity, and (iv) enable private sector participation. Institutional Arrangements The Program will be implemented by ZESCO and REA under the oversight of the Ministry of Energy (MoE). The Program will use the Government and REA and ZESCO systems for Program implementation, oversight, financial management, procurement, ESHS management, monitoring and evaluation and reporting arrangements. A ii ESSA for Zambia NEAT Program Program Operations Manual (POM) will be developed setting out detailed institutional, administrative, financial, technical, operational, and environmental and social procedures for the implementation of the Program and Program Action Plan (PAP). In line with the PforR policy, the Bank has undertaken an Environmental and Social Systems Assessment (ESSA) to confirm the robustness of the Country system for management of the ESHS effects and evaluate the extent to which the system is consistent with the PforR Six Core Principles and the corresponding Key Planning Elements. Specifically, the ESSA seeks to: (i) identify the Program’s potential ESHS effects, (ii) assess the current system for Environmental, Social, Health and Safety (ESHS) management applicable to the Program, including a review of institutional responsibilities; (iii) evaluate the capacity of the relevant institutions to implement requirements under the system; and (iv) recommend specific actions to address gaps if any, in the system, by providing material measures for improving program design and implementation. Measures for addressing the identified gaps are organized into a Program Action Plan (PAP). ESSA Scope and Methodology The Environmental and Social System Assessment (ESSA) for the Program was undertaken to review the extent to which the borrower systems for ESHS risk management are consistent with the six core principles and key planning elements of the Bank Policy and Directive for PforR financing. The six core principles and planning elements are used to ensure that PforR operations are designed and implemented in a manner that maximizes potential environmental and social benefits while avoiding, minimizing or mitigating adverse ESHS risks and promote environmental and social sustainability of the Program. In this regard, the WB team conducted a consultative ESSA with national and LA level stakeholders, to evaluate the adequacy of the Borrower’s system for management of ESHS risks associated with the Program intervention. Specifically, the ESSA seeks to: (i) identify the Program’s potential ESHS effects, (ii) assess the current system for ESHS management applicable to the Program, including a review of institutional responsibilities; (iii) evaluate the capacity of the relevant institutions to implement requirements under the system; and (iv) recommend specific actions to address gaps if any, in the system, by providing material measures for improving program design and implementation. Measures for addressing the identified gaps are organized into a Program Action Plan (PAP). The Bank applied several approaches during the development of the ESSA, including: a. Screening Program activities were undertaken during the concept stage to identify potential ESHS effects of the program and to confirm that no activities that meet the defined exclusion criteria are included in the PforR; b. Comprehensive desk review of relevant country policies, legal, regulatory and institutional frameworks, and program documents that address ESHS aspects relevant to the Program; and c. System, Institutional and Capacity Assessments conducted through consultations with stakeholders between August 21st and 24th to consider the applicability ‘as written’ versus ‘as practised’ for ESHS effects management and consistency with the six ‘core PforR principles’. The ESSA team held consultations that brought together multiple stakeholders in Lusaka which included but not limited to the following key stakeholders; MoE, REA, ZESCO, Ministry of Community Development and Social Services, Occupational Safety and Health Institute (OSHI), Zambia Environmental Management Authority (ZEMA), NGOs, Gender Division, Resettlement Department, among others ESSA validation and disclosure workshop In line with the World Bank Policy for PforR financing and the World Bank’s Access to Information Policy, the draft ESSA findings will be disclosed, and its findings presented to stakeholders through a workshop in November 2023. Based on the input and feedback from the participants, the draft ESSA report will be revised, approved, and the final report publicly disclosed in-country on the client’s website and the World Bank’s external website prior to Board approval. iii ESSA for Zambia NEAT Program Program Environmental, Social, Health and Safety (ESHS) Effects ESHS Benefits The potential ESHS benefits from the program will be derived from; i) increased access to electricity services for households in Zambia, ii) inclusion of vulnerable households in line with the last mile program pro- poor focus objectives that makes connection affordable; iii) reduced dependency on kerosene and firewood as sources of energy for cooking and lighting thus reducing the cutting of trees and reduction of carbon emissions; iv) reduced energy losses; v) improved ZESCO and REA financial sustainability thus helping to provide affordable supply of electricity; v) improvements in quality of public service delivery such as schools and health care facilities v) adoption of climate resilient infrastructure therefore reducing the overall operation and maintenance costs of REA and ZESCO infrastructure; and vi) promotion of clean energy transition hence reducing the national GHG emissions. Potential Environment, Social, Health and Safety risks and impacts The main EHS risks and impacts will include: (i) potential destruction of crops, vegetation and or/trees, following the acquisition of wayleaves to construct medium-voltage (MV) and low-voltage (LV) lines to extend the distribution network and to connect new households and businesses; (ii) potential solid and liquid waste generation from project activities; (iii) potential increased surface runoff during rainy season that could lead to erosion in areas with unprotected soil in neighbouring facilities; (iv) civil and electrical works are likely to expose workers and the proximal community members to occupational safety and health related hazards and risks; (v) potential inability of last mile customers to access technicians accredited by the sector regulator (ERB) to wire premises; (vi) equipment and machinery used could be a source of hazardous and noxious waste such as running engines, oil from wet transformers, electronic waste, used engine oil and oil filters; and vii) community health and safety risks including spread of diseases such as Covid and HIV and AIDs. Social risks and impacts will include: i) the potential acquisition of MV and LV wayleave without compensation, and loss of land value along the wayleave trace due to usage restrictions; ii) potential exclusion of Vulnerable and Marginalized Groups (VMGs) and vulnerable households and individuals1 from Program benefits including consultations and electricity access due to their inability to pay for wiring and connection costs; iii) potential disproportionate impact of potential tariff increases on the poor households; iv) potential increase in Sexual Exploitation and Abuse, and Sexual Harassment (SEA-SH) cases due to influx of workers into sub-project areas; v) potential failure to institute differentiated treatment of VMGs and other vulnerable households, leading to the recovery of idle meters and vending machines from persons unable to pay for the connection and/or service and the token system is likely to further exclude the IPs and vulnerable households from accessing project benefits, vi) risk of undifferentiated targeting of VMGs and other vulnerable households under the last-mile connectivity and elite capture (e.g. of ready Boards) by the ‘knowledgeable’ VMGs and non VMG individuals , limiting the participation of VMGs and other vulnerable households in the project’s activities; vii) risk of illegal and unsafe extensions of LV lines and connections, resulting in increased exposure to electrical accidents; viii) limited stakeholder engagements and disclosure of program information presenting risks of increased grievances; Program E&S Risk Rating Because of the significant geographic dispersion of the participating districts, different scales of proposed investments by REA and ZESCO, the potential direct, indirect and cumulative environmental and social impacts associated with many sub-projects in the Program, the capacity of the National Program Coordination Team (NPCT) (at MoE, ZESCO, and REA), and gaps identified in the institutions responsible for managing ESHS risks in the country, the overall risk of the Program is rated as Substantial. ESSA Findings 1Vulnerable individuals, households and groups who need to be included and specifically targeted by the Program include, People Living with Disabilities, the Poor Older Members of Society, Poor Youth, Poor Female/Male/Orphans headed Households, and Minority Groups/Clans iv ESSA for Zambia NEAT Program The ESSA identified gaps that would potentially undermine the application of the country systems for effective management of ESHS risks and impacts under the Program. Despite the robustness of the country’s ESHS system, the ESSA identified some gaps including: (i) low commitment to E&S sustainability leading to inadequate resourcing and accountability for ESHS risk management; (ii) fragmented legislative and institutional frameworks for managing social risks and impacts; (iii) ineffective GRM systems; (iv) inadequate targeting and inclusion of VMGs and other disadvantaged individuals and groups in participation and accessing Program benefits; (v) inadequate public participation; (vi) limited monitoring and reporting on ESHS risks and impacts management, (viii) inadequate collaboration and coordination of ESHS activities between lead agencies i.e. Occupational Safety and Health Institute (OSHI), Zambia Environment Management Authority (ZEMA), Ministry of Labour and Social Services (MLSS), Gender Division, etc to manage ESHS risks; (ix) inadequate ESHS staffing at the implementing agencies; (x) lack of inclusion and/or implementation of ESHS clauses the contract and bidding documents; (xi) inadequate contract management and supervision of Environmental and Social Management Plans (ESMPs). ESSA Recommendations To mitigate against ESHS risks and impacts, all sub-projects under the Program will undergo screening, which will include a set criterion for excluding certain categories of sub-projects which would result into high and substantial risks and significant negative E&S impacts which are irreversible or unprecedented on the environment and/or affected people, regardless of the government’s capacity to mitigate the risks. All the sub-projects will be required to follow the guidelines of the Environmental, Social, Health and Safety risks and management (ESHSRIM) Manual which will be developed by the Program, and included in the Program Operations Manual (POM). The POM forms part of the Financing Agreement of the Program. In addition, the ESSA has recommended ESHS mitigation and enhancement measures in the Program Action Plan presented in Table 0-1 The PAP shall be legally binding and incorporated into the Financing Agreement of the Program. v ESSA for Zambia NEAT Program Table 0-1: Proposed Environmental, Social, Health and Safety (ESHS) Program Action Plan No. Action Description DLI/IPF Responsibility Timing Expected Output Actions to strengthen Environmental, Health and Social Management Systems (EHSRMS) 1. ZESCO and REA to develop an Environmental, DLI XXX ZESCO / REA Condition of Program • ESHSRM Manual for ZESCO and REA. Social, Health, and Safety Risk and Impacts effectiveness • Document introduced, and adopted by the Management (ESHSRIM) Manual, including organisations as part of improved ESHS guidelines on land acquisition, grievance management practices management, stakeholder engagement and social inclusion, GBV-SEA/SH, management of personal data, OHS among other ESHS aspects • All staff trained on ESHRM manual The ESHSRM manual to be adopted by the DLI xxx REA and ZESCO Within 1 yr of • Operationalization of the manual on organization and trained to company staff on Safeguard program company operations implementation specialists effectiveness Actions to build the capacity for staff of implementing agencies, involved in the Program to enhance environmental and social management risk performance 2. Enhance the ESHS risk management capabilities DLI XXXX ZESCO / REA before disbursement • Qualified and experienced staff assigned to by staffing the PIU with adequate, qualified, MoE of grants to ZESCO REA and ZESCO experienced, and a full-time environmental and REA • 1 environmentalist, 1 Health and Safety specialist, Health and Safety specialist, and Officer, and 1 social specialist and social specialist at ZESCO and REA Project confirmed annually during APA. Implementation Unit (PIU). Actions to strengthen the implementation and monitoring of the environmental and social risk management 3. • Include a robust ESHS risks and impacts DLI xxx NPCU Before APA • Inclusion of APA verification indictors in the management verification protocol in Annual WB ToRs for APA. Performance Assessment (APA). • Inclusion of a chapter on EHSS in the main • NPCU to conduct an independent annual Annually APA reports. ESHS audit for all infrastructure investments, • Independent Annual ESHS Audit report and reports shared with the WB 4. Include all the applicable ESHS clauses and DLI xxx ZESCO and REA Prior to procurement • Bidding and Contract document templates budgets in the bidding and contract documents of any civil works with ESHS aspects. for civil works. • Inclusion of ESHS in bills of quantities for all subprojects • Supervision and monitoring reports and confirmed through APA. vi ESSA for Zambia NEAT Program No. Action Description DLI/IPF Responsibility Timing Expected Output 5. Collaborate and partner the lead ESHS agencies, DLI xx NPCT Continuous • Number of trainings and technical including OSHS, ZEMA, NCC, Community ZESCO, REA assistance provided in collaboration with Development, Gender Division etc to train Lead ESHS relevant agencies, and confirmed through implementing agencies and contractors on ESHS agencies progress reports. risks and impacts management. • Training reports. 6. ZESCO and REA to develop and manage functional ZESCO & REA Within 1 year after Digitized GRM systems rolled out at ZESCO and digitized GRM systems DLI xxxx program and REA. effectiveness • GRM constituted and grievances being Implementing agencies to develop and manage DLI xxx ZESCO / REA Before logged, responded, and resolved for sub- functional GRM structures at all subproject levels commencement of project levels sub-projects • Confirmed annually through APA. vii ESSA for Zambia NEAT Program 1 Program Description 1.1 Background 1. Access to electricity is central to Zambia’s future both because of the economic development it enables and because of its importance to social welfare. Despite progress in recent years, especially off-grid, the country's electrification rate remains just 42%2, below the Sub-Saharan Africa average of 47%. This overall rate does not capture the full story however: while over 75% of urban households have access to electricity – almost exclusively through the grid – less than 12% of rural households have access to any kind of electricity source. Off-grid electrification plays an increasingly important role in this regard as it provides 85% of the access in rural areas, predominantly through solar lanterns but also through rechargeable batteries, solar homes systems, and diesel generators. 2. Where households and businesses do have access to electricity, reliability remains a significant barrier to productivity and economic growth. In particular, the country suffers from frequent power outages, primarily the result of insufficient generation capacity and underinvestment in the grid. According to the Bank’s 2019 enterprise survey3, electricity is the second most frequently reported constraint to the business environment, with 21% of firms reporting electrical outages as a major constraint to their operations. On average, firms and households reported experiencing 21 hours of power outages per week, with some reaching over 30 hours. According to a 2015 Bank study, power outages lead to an average annual loss of 2.3% of GDP4. 3. Despite considerable hydropower, coal, solar, and wind resources in the country, ZESCO has struggled to meet the Zambia’s growing demand for electricity in recent years due to insufficient investment in new power projects and the country's historical reliance on hydroelectric power. Zambia has an estimated 6,000 MW of economically exploitable hydropower potential, along with abundant solar resources that are well-suited to solar photo voltaic development with an average of 5-6kWh/m2/day of solar irradiation5, and wind potential particularly in the South and East of the country. In 2022, installed capacity reached 3,777 MW, of which 84% is hydropower, 9% is coal, 3% is HFO, and 2% each is solar and diesel6. Nevertheless, effective generation capacity is significantly below that installed and reportedly only marginally above peak demand of approximately 2,300 MW. 4. The proposed Program is aligned with the Zambia Country Partnership Framework (CPF) FY2019-2023 that is in the process of being extended to FY2024. The overarching goal of the CPF is the diversification of Zambia’s economy so that it is more resilient and inclusive. The two revised focus areas for the CPF extension are: (i) increased resilience of rural households; and (ii) better job prospects especially for under-employed groups (including youth as well as women and girls). 5. Under focus area (i), the proposed Program will contribute to objective 2, namely improving access to and quality of resilient infrastructure services increased in selected rural areas and small towns. Activities to be financed include the provision of affordable, sustainable electricity services to the last mile both on-grid through ZESCO grid extensions and grid connection subsidies but also off-grid through financial and smart subsidies to off-grid energy service providers. The proposed Program will also the procurement of new 2 World Bank Group. (2018). Zambia – Beyond Connections: Energy Access Diagnostic Report Based on the Multi-Tier Framework. Washington, D.C. : World Bank Group. 3 World Bank (2020). Zambia Enterprise Survey 2019. Washington, D.C. : World Bank Group. 4 World Bank (2015). "Zambia: Investment Climate Assessment." Retrieved from https://openknowledge.worldbank.org/handle/10986/22596 5 Energy Sector Management Assistance Program (ESMAP) (2019). Zambia Power Sector Resilience Study. Available at: https://openknowledge.worldbank.org/handle/10986/31801 6 Energy Regulation Board 2022 Statistical Bulletin. Retrieved from https://www.erb.org.zm/download/2022-Statistical- Bulletin.pdf 1 ESSA for Zambia NEAT Program generation capacity and improvements of ZESCO’s operational performance for improved reliability and quality of service. 6. Under focus area (ii), the proposed Program will contribute objectives 3, 4, and 5 of the CPS, namely access to secondary education, health services, nutrition, and social protection, strengthened economic management for sustainable growth and regional integration, and improved livelihood opportunities for rural communities. Increased access to electricity supports the delivery of the social services outlined above and improves the business environment in turn leading to greater economic development and employment opportunities. Improvement in the management and financial performance of ZESCO supports strengthened economic management and regional integration by lessening its reliance on Government and making it a trusted counterparty in regional power trade and infrastructure projects. 1.2 Government’s Program 7. The proposed National Energy Access and Transformation (NEAT) Multiphase Programmatic Approach (MPA) is a Zambia-specific program that will return the sector to structural integrity so that it is able to engage in, support, and reap the benefits of other investment. While the Regional Energy Transmission, Trade and Decarbonization (RETRADE) and Accelerating Sustainable & Clean Energy Access Transformation (ASCENT) programs focus on increasing supply through cross-border trade, and accelerating access to energy, they are unable to achieve turnaround of the power sector in isolation. With a focus on achieving financial sustainability and mainstreaming sustainable electricity access expansion mechanisms, the NEAT MPA aims to systematically tackle the underlying impediments to sector viability, change the paradigm for sector investment, and provide the framing around which other investments can be anchored. This is expected to include a series of Program- for-Results and IPF or Guarantee operations to ensure that reforms are implemented and institutionalized over the long term and, as the sector becomes viable once again, that private sector is mobilized on value-adding investments from debt refinancing to renewable energy generation. In doing so, the proposed program combines a signalling effect of long-term support to Government and sector stakeholders, an incentive and accountability mechanism for Government adherence to its own strategy for reform, and the flexibility of tailoring each phase to the context at the time of preparation to achieve the desired outcomes. 8. The Program framework for the MPA seeks to implement the government strategic vision of increasing reliable electricity supply and expanding access to energy to spur inclusive economic growth. The MPA program framework creates the pathway for achievement of the vision. The MPA framework aligns with the government program for energy sector transformation in Zambia, built on dour pillars namely, (i) Improved sector planning and optimized system expansion; (ii) Improved operation and financial performance of ZESCO; (iii) Increased access to electricity, and (iv) enabling environment for private sector participation. 1.3 Proposed MPA Program Development Objectives (PDO) 9. The Program Development Objective (PrDO) is to expand access to energy and improve financial sustainability of the sector with enhanced supply reliability by increasing private sector participation in renewable energy solutions. 10. The Program Outcome indicators (PrDO indicators) • People provided with new or improved electricity services (number) • ZESCO cost recovery (percentage); • Reliability of electricity supply (SAIFI/CAIDI); and • Non-hydropower renewable energy capacity procured (MW). 11. The proposed four phases of the MPA are designed to ensure progress across the electricity value chain for achieving the complementary goals of providing more reliable energy supply to more people in Zambia. 2 ESSA for Zambia NEAT Program • Phase 1: Further elaborated in next section, seeks to establish the foundations for sustainable sector growth and includes activities under all pillars of the MPA framework. Using the PforR instrument ensures support and incentive for implementation of the ambitious and comprehensive government program for utility sustainability (ZESCO strategy) and scale-up of energy access (REA strategy). • Phase 2: Continues implementation of the government programs under Phase 1 towards expanding energy access and improving ZESCO creditworthiness, with continuously improving operational and financial performance. Signal WB commitment to the private sector participation agenda while supporting the fundamental requirements to build sector creditworthiness. • Phase 3 and Phase 4 will be defined based on progress under Phase 1. As the electricity sector demonstrates concrete progress towards ZESCO transformation, Phase 3 would be designed to support implementation of the debt management plan, specifically through a guarantee or liquidity support to reprofile ZESCO’s remaining debt. Further, assuming effective implementation of the government program during 2023-25, progress on key ZESCO creditworthiness indicators and use of a competitive procurement process, phase 4 can provide IDA guarantee or other credit enhancement support for generation PPP projects. The scope of the phases will be determined based on lessons learned and insights from Phase 1. 1.4 Proposed Program Development Objective 12. The Program Development Objective for Phase 1 is to expand access to electricity and improve financial sustainability of the sector. This is a subset of the PrDO of the MPA. 1.5 PDO Level Results Indicators 13. The Phase 1 Program Results indicators (PDO indicators) include, • People provided with new or improved electricity services (number); • ZESCO cost recovery (percentage); • Reliability of electricity supply (CAIDI). 1.6 Program for Results (PforR) Description 14. The Government program encompasses three intertwined plans covering the electricity sector value chain namely, the Integrated Resource Plan 2050 (‘IRP’), ZESCO Turnaround Strategy 2031 (‘ZESCO plan’) and Universal Energy Access strategy (‘REA plan’). These also form the basis of the overall MPA framework. The PforR (Phase 1) focuses on the 2023-26 time-slice of the government program, with disbursement linked indicators associated with the short-term foundational priorities for sector transformation. Figure 1 below presents the program boundary for Phase 1 of the PforR within the MPA framework and the government program. 3 ESSA for Zambia NEAT Program Figure 1 . Boundary of Government Program (‘p’) for Energy Sector Transformation and Phase 1 PforR (‘P’) 15. The Phase 1 PforR program will focus on a time-slice of the government program. The program support 2023- 26 priority actions identified in the government program, aligned with the MPA pillars namely, optimized system planning and expansion; (ii) Improved operation and financial performance of ZESCO; (iii) Increased access to electricity, and (iv) enable private sector participation. The proposed disbursement linked indicators and results are provided in Table 1-1 below, and are subject to further discussion during preparation. Table 1-1 – Disbursement Link Indicators (DLIs) and Results for the Program Prior Results CY 2024 CY 2025 Proposed (June – Dec 2023) Allocation (USD M) DLI 1: Improved DLR 2.1: Adoption of the DLR 2.2: Operationalization of DLR 2.2: Operationalization of sector planning Integrated Resource Plan hydrological monitoring systems hydrological monitoring systems 15 and optimized (IRP) (% of hydro generation stations (100% of hydro generation system connected) stations connected) (10 IDA Management 5 CTF*) DLI 2: Improved DLR 3.1: Adoption of DLR 3.4: On-lent loans are DLR3.7: GRZ adopts timebound operational and Debt Management Plan converted into equity, plan for a one-time tri-partite financial by ZESCO Board prioritizing loans for rural settlement of outstanding performance of electrification (US$) payments between mining ZESCO DLR 3.2: Adoption of sector, ZESCO and GRZ Working Capital DLR 3.5: GRZ arrears and ZESCO Management Framework outstanding debt settled through DLR 3.8: Increased use of digital by ZESCO Board a one-time swap (% arrears) channels by customers (50% by 45 2025) DLR 3.3: Adoption of DLR 3.6: Increase the number of (40 IDA Customer Satisfaction contract customers by reducing DLR 3.9: Implement customer 5 Donor#) Improvement Plan by the Maximum Demand capping service charter and customer ZESCO Board to 5MVA. management system (100% coverage) OR CAIDI at XX% DLR 3.10: Complete Smart- metering of all high-value customers (100% coverage) 4 ESSA for Zambia NEAT Program Prior Results CY 2024 CY 2025 Proposed (June – Dec 2023) Allocation (USD M) DLI 3: Increased DLR 4.1: Adopt DLR 4.3: New connections DLR 4.3: New connections Access to Operations manual for through implementation of the through implementation of the Electricity Rural Electrification Fund Grid Expansion program Grid Expansion program (REF), as per the Rural (number) (number) Electrification Act (May 25 2023, and operationalize DLR 4.4: New connections DLR 4.4: New connections the REF through implementation of the through implementation of the (10 IDA Off-grid Smart Subsidy scheme Off-grid Smart Subsidy scheme 15 Donor#) DLR 4.2: Regulatory (number) (number) Framework for Standard Connection Charges approved/adopted DLI 4: DLR 5.1 Approval of ZESCO Tariff DLR 5.1 Approval of ZESCO Tariff Strengthened Adjustment per the Multi-Year Adjustment per the Multi-Year governance for Tariff Proposal (MYTP) Tariff Proposal (MYTP) private sector participation DLR 5.2: Adopt competitive DLR 5.4 Pilot national 5 procurement process under the procurement platform for IRP, establishing national priority generation projects (XX (5 CTF*) procurement platform number of projects or XX RE capacity) DLR 5.3 Recruit Transaction Advisory services Total 90 *CTF funding is not secured. # Donor funding is confirmed, subject to appraisal and final agreement on project activities 60 IDA 1.7 Institutional and Implementation Arrangements 16. The Program will be implemented by ZESCO and REA under the oversight of the Ministry of Energy (MoE). The Program will use the Government, REA and ZESCO systems for Program implementation, oversight, financial management, procurement, ESHS management, monitoring and evaluation and reporting arrangements. A Program Operations Manual (POM) will be developed setting out detailed institutional, administrative, financial, technical, operational, and environmental and social procedures for the implementation of the Program and Program Action Plan (PAP). 1.8 Results Monitoring, Evaluation, and Verification Agencies 17. ZESCO will be responsible for results monitoring and reporting of the PforR component. xxxxxxx. 18. The MoE will recruit an Independent Verification Agency (IVA) to verify the achievement of the DLIs using terms of reference satisfactory to the World Bank. The DLIs will be verified based on review of official data and reports supplementing evidence-based methods. The periodic IVA reports will serve as the basis for assessing progress toward achievement of the DLI targets and for disbursement authorization by the World Bank. 1.9 Disbursement Arrangements 19. The Program disbursements will be based on achieved results. The supporting documents for accountability of Bank funds will be the certificate of completion issued by the IVA for the achievement (or partial achievement) of DLIs. Xxxxxxx. 20. Program Operational Manual (POM): A Program Operational Manual that will be prepared as an effectiveness condition will include: (a) the activities and timetable of actions to be carried out under the 5 ESSA for Zambia NEAT Program Program; (b) excluded activities; (c) the respective roles and responsibilities of entities participating in the Program; (d) the composition and responsibilities of the Program Implementation Team; (e) the fiduciary, technical and operational aspects and procedures for implementation of the Program, including the financial management procedures; (f) the procedures for distribution of IDA credit proceeds; (g) the verification protocols for the DLIs and DLRs; (h) the Anti-Corruption Guidelines; and (i) the Program Action Plan. The POM will also include guidelines for implementation of ESHS aspects under the Program. 6 ESSA for Zambia NEAT Program 2 Environmental and Social Systems Assessment Scope and Methodology 2.1 Purpose and Objectives 21. The PforR instrument requires technical, fiduciary, environment and social assessments. Therefore, the ESSA has been prepared by the WB for the PforR component of the Program to determine the capacity of the borrower’s systems to plan and implement effective measures for the management of ESHS risks associated with the Program, and to promote E&S sustainability and requirement to avoid, minimize, or mitigate adverse ESHS impacts. In accordance with the WB PforR policy requirements, the borrower will apply national systems for the management of ESHS risks associated with the PforR interventions, provided these are consistent with the WB’s PforR policy requirements, including the six PforR Core Principles and key planning elements. 22. 23. The specific objectives of the ESSA are to: i. identify the Program’s potential ESHS effects; ii. review the existing policy, legal, regulatory, and institutional frameworks relevant to ESHS management of effects related to Program’s interventions; iii. assess the capacity of implementing institutions in managing potential adverse ESHS risks and impacts associated with the Program; iv. assess the Program’s system performance with respect to the Six core PforR principles and identify strengths, weaknesses, opportunities, and threats in Program performance; and v. recommend specific actions to address gaps in the Program’s ESHS systems that will be embedded into the PAP and Program design, to strengthen the Program’s performance. 2.2 The ESSA Approach 24. The Program’s ESSA has been prepared to establish the extent to which the borrower system is consistent with the Six Core Principles of the World Bank’s PforR policy for purposes of enhancing effectiveness in the management of the Program Environmental, Social Health and Safety (ESHS) effects while promoting sustainable development. These six Core Principles include: i. Environment and Social Management: To promote E&S sustainability in the Program design; avoid, minimize, or mitigate adverse impacts; and promote informed decision-making relating to the Program’s E&S effects. ii. Natural Habitats and Physical and Cultural Resources: To avoid, minimize, or mitigate adverse impacts and promote informed decision-making relating to a Program’s E&S effects in relation to physical and cultural Resources. iii. Public and Worker Safety: To protect public and worker safety against the potential risks associated with construction and/or operations of facilities or other operational practices under the Program; exposure to toxic chemicals, hazardous wastes, and other dangerous materials under the Program; and reconstruction or rehabilitation of infrastructure located in areas prone to natural hazards. iv. Land Acquisition: To manage land acquisition and loss of access to natural resources in a way that avoids or minimizes displacement, and assists the affected people in improving, or at the minimum restoring, their livelihoods and living standards. v. Indigenous Peoples and Vulnerable Groups: To give due consideration to the cultural appropriateness of, and equitable access to, Program benefits, giving special attention to the rights and interests of the Indigenous Peoples and to the needs or concerns of vulnerable groups. vi. Social Conflict: To avoid exacerbating social conflict, especially in fragile states, post-conflict areas, or areas subject to territorial dispute. 7 ESSA for Zambia NEAT Program 25. The relevance and applicability of the Six Core PforR Principles to the proposed Program are discussed under Chapter 7 where a comparative analysis of the borrower ESHS system and the Six Core PforR principles including the key planning elements is presented. 2.3 The ESSA Methodology 26. In conducting the ESSA, the WB team applied various techniques, including the following: i. Assessment of the ESHS effects of the Program: an ESHS risk screening of the proposed Program activities was undertaken during the concept stage to identify potential ESHS effects and to confirm that there are no Program activities that meet the defined exclusion criteria are included in the Program, in line with the World Bank guidelines for PforR. ii. Comprehensive desk review of the existing national system consisting of policies, legal, regulatory and institutional frameworks, Program documents, and similar ESSAs carried out in the recent past. The review examined the set of applicable national level policy, legal, regulatory and institutional frameworks that are relevant for the management of ESHS effects in the Energy sector. In addition, the assessment examined technical documents from previous and ongoing WB PforR Programs such as the Zambia Growth Opportunities Program (ZGOP), and Zambia Devolution Support Program (ZDSP), both approved in FY 22 and currently under implementation. iii. Stakeholder consultations: : During the period, August 22nd to August 25th various key Stakeholders were engaged to enable the World Bank to understand the existing systems and institutional experiences with regard to the application of the ESHS systems for the management of ESHS effects. To this end, the ESSA process involved institutional analysis to assess the capacity of key institutions to effectively implement the required ESHS actions. The assessment of these key institutions focused on their capacity for E&S risk management, public and worker safety, labour related issues and inclusion of vulnerable groups including the women, youth, and persons with disability. Some of the key relevant stakeholders consulted included Ministry of Energy, Energy Regulatory Board (ERB), MoE, REA, ZESCO, Ministry of Community Development and Social Services (MCDSS), Ministry of Labour and Social Security (MLSSS), Occupational Safety and Health Institute (OSHI), Zambia Environmental Management Authority (ZEMA), NGOs, Gender Division, Resettlement Department, among others. The comprehensive list of all stakeholders consulted is presented in Annex 2 of this report. V ESSA validation and disclosure workshop. In line with the World Bank Policy for PforR financing and the World Bank’s Access to Information Policy, the draft ESSA will be disclosed and its findings presented to stakeholders in October 2023. Based on their input and feedback, the draft ESSA report will be revised, approved, and the final ESSA report publicly disclosed in-country on the MoE, REA, and ZESCO websites and on the World Bank external website prior to the Program’s WB Board approval. 8 ESSA for Zambia NEAT Program 3 Environmental and Social Benefits, Risks, And Impacts of the Program 3.1 Purpose of the Program and Exclusions 27. Scope of the Program and projects. The NEAT Program will support ZESCO and REA in the first phase of the 4-phase MPA towards achieving financial and operational sustainability and realising the vision of universal access to electricity. The Program propose 28. The scope of subprojects to be undertaken under the program will range from small to large scale infrastructures, such as rehabilitation and construction of transmission lines, rehabilitation of sub-stations, and last mile connections to households (under Key Results Area 3). This will support the expansion, maintenance, upgrade and modernization of the distribution network, and the mainstreaming of climate resilient standards in ZESCO’s and REA’s infrastructure projects. 29. Based on the scope and scale of sub-projects to be financed under the Program, the Environmental, Social and Health and Safety (ESHS) risks and impacts are expected to be low to moderate in scale per sub-project, with the most adverse impacts being site-specific, temporary and limited during the construction phase. All investments will undergo an ESHS risks and impact screening and assessment process as per the national environmental and social management systems requirements. Consistent with the requirements of the Bank PforR Policy, the proposed Program operation will not finance activities that pose high ESHS risks. 3.2 Environment & Social Risk Rating 30. Because of the significant geographic dispersion of the participating districts, different scales of proposed investments by REA and ZESCO, the potential direct, indirect and cumulative environmental and social impacts associated with many sub-projects in the Program, the capacity of the NPCT (at MoE), ZESCO, and REA, and gaps identified in the institutions responsible for managing environmental, social and health risks in the country, the overall ESHS risk of the program is rated as Substantial. 3.3 Exclusion Principle 31. The principle applies to Program activities that meet the exclusion criteria regardless of the borrower’s capacity to manage such ESHS effects. In the PforR context, exclusion mean that an excluded activity is not included in the identified investment menu. The exclusion principle also applies to any activity that requires completion of non-eligible activity to achieve its contribution to the PDO and/or DLI. The Program is designed to exclude investments that are likely to have significant adverse ESHS risks and impacts or are categorised as high-risk sub-projects under the World Bank ESF and Zambia EIA Regulations (EMA 2011). The sub-project activities will be screened against the six core principles under the PforR and the relevant country systems which will apply to all investments as a mechanism for avoiding, minimising, or mitigating adverse ESHS risks/impacts. All this will be captured in the Program Operation Manual that will specify the suitable criteria through which the program components will be screened. 32. The Program shall exclude projects likely result in: a) Any investments that trigger high or substantial risk rating under the World Bank Environmental and Social Framework (ESF). b) Air, water, or soil contamination leading to significant adverse impacts on health and safety of individuals, communities, and ecosystems. c) Significant conversion or degradation of critical natural habitats or cultural heritage sites. d) Workplace conditions that expose workers or adjacent community members to significant health and personal safety risks. e) Large-scale changes to land-use or restriction of access to land and/or natural resources. f) Adverse E&S impacts covering large geographical areas, including transboundary impacts or global impacts such as greenhouse gas (GHG) emissions. g) Significant, cumulative, induced, or indirect ESHS risks and impacts. 9 ESSA for Zambia NEAT Program h) Activities that may involve physical and/or economic displacement of more than 200 PAPs. Any such resettlement will require evidence of ownership or a RAP in accordance with the resettlement guidelines to be included in the POM/ESHS guidelines/manual. i) Activities that involve the use of forced or child labour. j) Activities likely to cause marginalisation of, or conflict within or among social groups. k) Activities with high risks of Gender Based Violence (GBV), and Sexual Exploitation and Abuse/Sexual Harassment (SEA/SH). l) Activities that would: i. adversely affect lands or rights of Traditional Local Communities or other VMGs; ii. have adverse impacts on land and natural resources subject to traditional ownership or under customary use or occupation; iii. cause the relocation of VMGs from land and natural resources that are subject to traditional ownership or under customary use or occupation; or iv. have significant impacts on cultural heritage that is material to the identity and/or cultural, ceremonial, or spiritual aspects of the affected communities. v. Investment on land for which ownership cannot be ascertained, land with any encumbrances, including boundary conflicts, family disputes, court cases, absentee landlords and succession challenges. 33. In the event that a proposed activity would lead to physical and/or economic the displacement of encroachers on the wayleave trace, the Implementing agency will be required to compensate such encroachers in line with the requirements of PforR Core Principle #5. The screening criteria and process will be outlined in the Program Operations Manual (POM), and as necessary, and will be in the ToR to be verified during the annual Independent Verification Audit (IVA). In addition, the ESHSM Manual shall clearly define the manner in which the Program will ensure VMGs are included in the Program consultation process and access to Program benefits, including how the Program should cushion them against high connection costs and consumption tariffs. 3.4 Program Beneficiaries 34. The main Program beneficiaries will include the following: i. Sector institutions. All sector institutions are expected to benefit from better planning by ZESCO and REA from improved governance, financial sustainability and enhanced efficiency across the value chain. ZESCO and REA management is expected to put forward a broad vision to achieve universal access in a financially sustainable way and enable enhanced capacity to achieve this mission. Independent Power Producers (IPPs) and suppliers such as Copperbelt Energy Corporation (CEC) will also benefit from reduced arrears. Improved efficiencies in the T&D system are expected to be reflected in the reduction of technical and commercial losses resulting in overall cost savings. ii. Households. The Program is expected to provide households with improved energy access and better- quality electricity service. It will also have an increased pro-poor access focus, mainstreaming targeted subsidy mechanisms to make the connection affordable for disadvantaged and vulnerable groups like female-headed households. Access to electricity will allow the use of additional household supplements such as televisions, fan, refrigerators, time and energy saving cooking stoves etc. It will enable households to undertake productive and income-generating activities and enhance access to relevant electricity information and communication through phone, radio and television. Empirical evidence shows the health benefits associated with the use of electricity especially for women and girls due to the reduction of indoor air pollution from the use of kerosene lamps and candles for lighting. iii. Social institutions. Improvements in the quality of public service delivery are expected through increased electricity connections, especially of public facilities such as schools; clinics; hospitals including 10 ESSA for Zambia NEAT Program health care centers that provide prenatal and postnatal reproductive health care services for women, girls and children (for example, for cold chain, child delivery, vaccine and medicine refrigeration, lighting, sterilization); and water pumping stations (for example, for safe drinking water) used by poor and vulnerable households. iv. Productive enterprises. The Program mainstreams good practices for demand stimulation and productive uses. This includes demand simulation for women target groups to ensure they access productive uses of energy at affordable cost. Improved access to electricity supply will contribute to increased income and productivity of enterprises (particularly for micro/small/medium enterprises) and will assist them in reducing their dependency on expensive diesel generation that has a substantially higher per unit cost. In addition, productive uses of electricity can boost job creation and lead to overall positive spillover effects to the communities. v. Gender-differentiated benefits. Providing rural households, social services, and enterprises with improved electricity services has the potential to promote gender equality, create employment and business opportunities for women, and improve development outcomes for example, health and education. 3.5 Potential Environmental, Social, Health, and Safety (ESHS) Benefits and Risks 3.5.1 Potential Environmental, Social, Health and Safety Benefits 35. The PforR Program will significantly deliver ESHS benefits which will vary depending on the investment’s menu. The potential ESHS benefits will include, but not limited to: a. increased access to electricity, leading to Improved clean environment and living conditions through the use of cleaner energy b. Reduction in use of fossil fuels for powering generators and other equipment, leading to reduced emissions of air pollutants, greenhouse gases (GHG), c. Improved safety on faulty transmission lines (eg reduction on electrocution) d. reduced dependency on kerosene and firewood as sources of energy for cooking and lighting, which, in turn, will lead to reduced cutting of trees and reduced carbon emissions; e. improved indoor air quality as a result of using less firewood and kerosene; f. improved and reliable electricity services in Zambia, g. improvements in quality of public service delivery such as schools and health care facilities, h. contribution to the inclusion of vulnerable households in line with the last mile connectivity program objectives; i. reduced energy losses, and, j. improved financial sustainability for ZESCO and REA. k. Inclusion of vulnerable households in line with the last mile connectivity program objectives; l. The program will implement climate smart and resilient energy infrastructure which improve resilience of local populations, especially populations vulnerable to crisis events as a result of climate change, such as floods and droughts; m. Enhanced technical capacities in the IAs to implement and manage public investments and ESHS effects 3.5.2 Potential Environmental, Health and Safety (EHS) Risks and Impacts 36. The Program is expected to have direct and indirect effects on the EHS and climate change aspects. The risks and impacts in this Program will mainly be limited to the construction phase. The risks are considered site specific, temporary in nature and reversible. 11 ESSA for Zambia NEAT Program 37. The potential EHS risks and impacts, include but are not limited to: a. Disturbance and loss of existing vegetation and potential impact to flora and fauna species. b. Localised noise and air pollution (dust and emissions) from construction activities. c. Soil contamination and underground water pollution from spillage of oil and fuel associated with construction works. d. Soil erosion and sedimentation of waterways especially during construction of transmission lines and substations. e. Land degradation impacts from sourcing of construction material from quarry and borrow pits for use in civil works. f. Scenic quality deterioration and environmental pollution from dumping of excavated material and impact to physical cultural resources. g. Occupational health and safety incidents/accidents to workers at construction sites and community health and safety risks to the public, especially electrocution and falls from heights. h. Increased generation and unsafe disposal of construction solid waste and wastewater. i. Traffic obstruction and increased traffic related safety risks. j. Temporal disruption of public access to residential and businesses especially during excavations near structures that have encroached the public land. k. Disruption of existing infrastructure or services such as drainage, sanitation, telecommunication utilities, power, and water supply especially during construction phase. l. Increased spread of sexually transmitted diseases including HIV/AIDs, Sexually Transmitted Diseases (STDs), and other communicable diseases such as tuberculosis, cholera, etc. m. Water (surface and groundwater) pollution risks from transport, treatment and disposal of wastewater and faecal sludge from pit latrines, septic tanks at camp sites, and other onsite sanitation facilities, if not properly handled. 3.5.3 Potential Social Risks and Impacts 38. The proposed investments under NEAT may pose potential negative social risks and impacts. The potential negative social risks and impacts will include, but not limited to: a. Inadequate Environment and Social Staffing and budget allocation for ESHS risks management. b. Loss of livelihoods through temporary displacements/repositioning of vendors, hawkers, drivers especially during construction of LV transmission lines. c. Disruption of access and damage to public utilities and/or private properties. d. Destruction of structures, crops and trees e. Labour influx risks which may lead to an increase in crime, insecurity and upset community dynamics. f. Use of Forced, child labour and abuse. g. Potential public and community health and safety risks such as accidents from open drains. h. Increased Gender-Based Violence (GBV) and Sexual Exploitation and Abuse and Sexual Harassment (SEA-SH). i. Lack of transparency and trust by communities due to poor consultations and stakeholder engagement with project beneficiaries, vulnerable and marginalized groups. j. Discrimination against the vulnerable groups, especially women and minorities in selecting Program participants, lack of consideration of PWD needs, access and suitable infrastructure. k. Lack of clear guidelines presents the risk of targeting and exclusion of vulnerable groups for Program benefits. l. Gender inequality in employment opportunities. m. Elite capture or political interference in beneficiary targeting of the most deserving as well as selection and prioritization of investments. n. Bias of contract awarding to known or particular group of contractors. o. Inadequate mechanisms for stakeholder identification, engagement, monitoring and feedback. p. Ineffective grievance redress and feedback mechanisms. 12 ESSA for Zambia NEAT Program 39. The potential Program effects. On the basis of program activities planned under the key results areas, the ESSA team and stakeholders who provided feedback identified potential ESHS effects associated with the Program as shown in Table 2. The potential ESHS risks and impacts from the proposed activities shall be handled by the Program Action Plan (PAP) that has been prepared as part of the ESSA. The PAP outlines the principles, steps, and procedures that will be followed during Program implementation to mitigate any potential adverse risks and impacts. 13 ESSA for Zambia NEAT Program Table 3-1: ESHS Effects Associated with Program Activities Under the Key Results Areas ESHS Effects Result Area Activities Proposed Mitigation and ehnacement measures Benefits Risks DLI 1: DLR 2.1: Adoption of the Integrated ▪ Improved governance of ▪ Inadequate consideration of ESHS effects at the ▪ Inclusion of ESHS specialists in the planning Improved Resource Plan (IRP) energy utility companies planning stage, leading to little or no budget stages, and ensure adequate resources and sector ▪ Energy loss reduction, considerations for ESHS management activities budget is allocated to ESHS risks management planning and DLR 2.2: Operationalization of hydrological ▪ Improved customer resourcing (financial, human, equipment) at this optimized monitoring systems (% of hydro generation experience, stage system stations connected) ▪ Innovative business growth Management (revenue diversification and Social growth), ▪ Political interferrances which may result in ▪ Develop and adopt public participation and civic ▪ Digital transformation, inadequate targeting of VMG areas or prevent education guidelines for mainstreaming ▪ Improved access to VMGs from accessing project benefits stakeholder engagement processes and capacity electricity by VMGs build the Implementing agencies. Environmental ▪ Disintegrated approach on consultations on ▪ Establish a systematic approach to stakeholder biodiversity protection approach of key engagement to identify stakeholders and build stakeholders (eg Forest department and ZEMA) and maintain a constructive relationship with during planning phases of the program could them. result to poor decision leading to a one-sided approach to environmental protection ▪ Support development of climate change ▪ Poor integration of climate change strategies in its screening tools to be integrated into the planning process subprojects design, monitoring and tracking of climate change related risks and proposed mitigation and/or adaptation measures. DLI 2: DLR 3.1: Adoption of Debt Management ▪ Business operational ▪ Focus on only Utility companies’ financial ▪ Promote and provide means for effective and Improved Plan by ZESCO Board efficiency, sustainability might lead to exponential increase inclusive engagement of stakeholders including operational DLR 3.2: Adoption of Working Capital ▪ Corporate sustainability, and in consummer tariffs, which may be beyond the monitoring the consultation process and and financial Management Framework by ZESCO Board developing new business affordability limits of VMGs and poor households providing feedback on the implementation of performance DLR 3.3: Adoption of Customer models. and individuals, thus locking them out of project citizens’ priorities. of ZESCO Satisfaction Improvement Plan by ZESCO ▪ Restore sustainability to the benefits ▪ Provide stakeholders with opportunities to Board sector and provide a firm express their views on the Program and allow DLR 3.4: On-lent loans are converted into basis from which to implementing agencies to consider and respond equity, prioritizing loans for rural implement future to them. electrification (US$) connectivity campaigns ▪ Conduct a study on strategies to implement DLR 3.5: GRZ arrears and ZESCO toward universal access tariffs that are affordable to the poor and outstanding debt settled through a one- vulnerable groups time swap (% arrears) 14 ESSA for Zambia NEAT Program ESHS Effects Result Area Activities Proposed Mitigation and ehnacement measures Benefits Risks DLR 3.6: Increase the number of contract customers by reducing the Maximum Demand capping to 5MVA. DLR3.7: GRZ adopts timebound plan for a one-time tri-partite settlement of outstanding payments between mining sector, ZESCO and GRZ DLR 3.8: Increased use of digital channels by customers (50% by 2025) DLR 3.9: Implement customer service charter and customer management system (100% coverage) OR CAIDI at XX% DLR 3.10: Complete Smart-metering of all high-value customers (100% coverage) DLI 3: DLR 4.1: Adopt Operations manual for ▪ Promote increased access Social ▪ Promote and provide means for effective and Increased Rural Electrification Fund (REF), as per the to electricity to all ▪ Limited or inadequate stakeholder inclusive engagement of stakeholders including Access to Rural Electrification Act (May 2023, and households including the engagements and disclosure of Program monitoring the consultation process and Electricity operationalize the REF vulnerable groups, which information providing feedback on the implementation of will in turn contribute to ▪ Political interference leading to program citizens’ priorities. DLR 4.2: Regulatory Framework for increased economic and benefits where political interests are high, ▪ Provide stakeholders with opportunities to Standard Connection Charges social welfare leaving the poor and vulnerable groups without express their views on the Program and allow approved/adopted ▪ Gender mainstreaming will access to power implementing agencies to consider and respond promote inclusivity and ▪ Potential exclusion of Vulnerable and to them. DLR 4.3: New connections through sustainability of energy Marginalized Groups (VMGs) and vulnerable ▪ Disclose appropriate Program information on implementation of the Grid Expansion programs households and individuals from Program E&S risks and impacts in a timely manner to program (number) ▪ Reduce dependency on benefits including consultations and electricity ensure meaningful consultations, in relevant kerosene and firewood as access due to their inability to pay for wiring local languages, in a manner that is accessible DLR 4.4: New connections through sources of energy for and connection costs would mean a failure of and culturally appropriate, considering any implementation of the Off-grid Smart cooking and lighting the Progam to achieve its objectives for the Last specific needs of groups that may be Subsidy scheme (number) Mile Connectivity differentially affected by the Program, or groups of the population with specific information 15 ESSA for Zambia NEAT Program ESHS Effects Result Area Activities Proposed Mitigation and ehnacement measures Benefits Risks DLI 4: DLR 5.1 Approval of ZESCO Tariff ▪ Encourage private sector-led ▪ Risk of elite capture by the comparatively more needs, such as disability, literacy, gender, Strengthened Adjustment per the Multi-Year Tariff renewable energy knowledgeable elites limiting the targeting of mobility, differences in language or accessibility. governance Proposal (MYTP) generation, VMGs and other vulnerable households under ▪ Ensure adequate documentation of all for private ▪ Improve the long-term last-mile connectivity; stakeholder engagement process including sector DLR 5.2: Adopt competitive procurement security of electricity supply; ▪ The likely acquisition of wayleave for discussions held, key concerns raised, responses participation process under the IRP, establishing ▪ Reduce the short- and long- transmission lines (HV,MV and LV) without given and agreed actions. Collect photographic national procurement platform term costs of delivering compensation, and loss of land value along the evidence to the extent possible. DLR 5.3 Recruit Transaction Advisory electricity services; wayleave due to usage restrictions may lead to services ▪ Provide local economic and risk of delayed Program imoplementation or ▪ Conduct feasibility and design studies which will social benefits from high rerouting costs; identify proper siting, planning and execution of DLR 5.4 Pilot national procurement electricity-related projects, ▪ Potential increase in GBV cases, and the subprojects to minimize impacts on natural platform for priority generation projects activities and programs, communicable diseases due to influx of workers habitats and PCR resources. (XX number of projects or XX RE capacity) including power generation into sub-project areas ▪ Develop an E&S screening checklist for screening projects; and sub-projects to identify any potential impacts to ▪ Minimize the environmental, Environment, Health and Safety natural habitats and physical cultural resources climatic and other social, Direct impacts would include but not limited to: before undertaking environmental assessments. cultural and economic ▪ Impacts on natural habitats and physical ▪ Prepare ESIA/ESMPs as per the country impacts of electricity supply cultural resources due to poor siting, design regulations, and incorporate an adequate and use and planning of infrastructures monitoring plan in the contract documents. ▪ Potential destruction of crops, vegetation ▪ The subprojects budget should include the ESMP and or/trees following the acquisition of budget and should be included in the BoQ as a wayleaves to construct transmission lines to standalone item for implementation of ESMP. strengthen distribution network and to connect new households and businesses Health and Safety management measures ▪ Potential solid and liquid waste generation ▪ Develop SOP guidelines for mainstreaming OHS from project activities and Community Health and Safety aspects in the ▪ Potential increase in surface runoff from ESHSM manual for adoption in Program excavated areas and substations during rainy implementation. season that could lead to erosion in areas ▪ The Program will partner with OSH to enhance with unprotected soil in neighboring facilities the capacity of implimenting agencies on health ▪ Civil and electrical works are expected to and safety risks management based on national expose the workers and the proximal laws and regulations through training of ESHS community members to occupational safety staff on OSHA, 2010 and WIBA 2007. and health related hazards and accidents ▪ Develop a simplified OHS manual for contractors. ▪ Inability of last mile customers to access ▪ Explore strategies to use alternative materials accredited technicians to wire premises instead of wooden poles, such as plastic poles which may present health and safety risks when non-accredited technicians are used ▪ Equipment and machinery used could be a source of hazardous and noxious waste i.e., 16 ESSA for Zambia NEAT Program ESHS Effects Result Area Activities Proposed Mitigation and ehnacement measures Benefits Risks running engines, oil from wet transformers, electronic waste, used engine oil and oil filters ▪ Limited awareness on safe usage of electricity to communities, especially in heavily populated areas. This can be mitigated through safety sensitization and awareness creation when connecting Ips to electricity ▪ Risk of electrocution and fires from illegal connections, especially during rainy seasons. In addition, there are also cases of power connections done by incompetent persons resulting in incidences of electrocution and a near miss electrocution of community members ▪ Community health and safety risks including spread of diseases such as HIV and AIDs. ▪ Cumulative impacts form projects within the project vicinity to exacerbate the impacts of the project i.e., vegetation clearance to further reduce the vegetation cover of project areas if they are being cut to pave way for another project. ▪ Indirect impacts such as access to electricity leading to demand in raw materials such as wooded poles that lead to deforestation in order to supply wooden poles to suppliers. 17 ESSA for Zambia NEAT Program 4 National Environmental, Social, Health and Safety Management Systems Relevant to the Program 40. As outlined in the PforR policy, the borrower systems will be applied for management of ESHS risks of the Program interventions. It is therefore necessary to ensure that the Program is implemented within a robust system for effective management of ESHS risks. This section provides an overview of existing Zambia’s policy, legal, regulatory, and institutional frameworks and their relevance for management of ESHS risks of the NEAT Program. It also identifies gaps if any, in the adequacy and effectiveness of the system for the management of the ESHS risks. 41. Based on the analysis of the country systems, there are no major gaps in Zambia legislation in comparison to the six World Bank PforR Core Principles. However, some gaps still exist, more on social risk and impacts management. The gaps identified by the ESSA are largely in the acquisition of land, and the inclusion of vulnerable and disadvantaged groups related to core principles 4 and 5 respectively. They include, (i) non-compensation of persons occupying land without the consent of the owner (e.g., squatters/encroachers) for improvements made on land (ii) lack of clarity on livelihood restoration or enhancement, (iii) insufficient targeting and inclusion of vulnerable and other disadvantaged or vulnerable individuals and groups in participation and benefits sharing, (iv) insubstantial public participation, and (v) RAP preparation, review, approval and disclosure are not entrenched in the Land Act, submission of RAP is not a mandatory requirement ( but considered a good practice) , and ZEMA only requires RAP under high-risk projects related to core principles 4 and 5, (v) there are no clear laws on the agency responsible for resettlement activities, despite existence of a Department of Resettlement under the Office of the Vice President These weaknesses have been enhanced under the Program to ensure the WB PforR Core Principles requirements are met (see Chapter 8). 42. The assessment of how the ESHS systems functions in practice is presented in Chapter 8 of this report, which is structured as a SWOT analysis of Implementing Agencies’ capacity to manage the ESHS risks and impacts in line with the country’s policies, legal and regulatory frameworks as written, and whether these are in line with the PforR Financing requirements. 43. Annex 9.1 presents Zambia’s policies, regulations, and legislative frameworks that are applicable for the management of ESHS effects of the NEAT Program, as well as some gaps that have been identified. 18 ESSA for Zambia NEAT Program 5 Institutional Arrangements for the Management of Environmental, Social, Health and Safety (ESHS) for the Program 44. This section describes the country’s institutional framework for the management of ESHS risks and impacts for realization of the proposed program benefits. 45. The ESSA found that a number of institutions have varying degrees of mandates for the management of ESHS effects. However, the efforts of these institutions are uncoordinated, and their activities are not planned in reference to each other. Consequently, there is limited consultations among the institutions and in most cases, they operate independently of each other, with the result that their effectiveness is hardly felt in practice. 46. Table 5-1 and Table 5-2 below presents the various institutions that will be involved in the management of ESHS effects of the NEAT Program. 5.1 Institutional Framework for Environment, Health, and Safety Management Systems Table 5-1: Institutional Framework for ESHS Management Under the NEAT Program Institution Responsibilities Relevance to the program 1. Ministry of Green The ministry is designated as the focal point for all Environment Program- activities shall be carried out in Economy and Management issues in the country. The Ministry performs such manner that ensures appropriate usage of Environment (MGEE) functions through the Environment Management Department. the environment, water, and natural The Ministry is responsible for the environment at the policy resources. level. The mandate of the ministry is to monitor, protect, conserve Activities such as installation of IT and manage the environment and natural resources through infrastructure and proposed physical sustainable exploitation for socio-economic development investments will undergo E&S risk aimed at eradication of poverty, improving living standards and screening, and requisite ESMPs developed ensuring that a clean environment is sustained now and in the (if necessary) to guide the management of future. The ministry comprises of various directorates at the adverse impacts and to ensure E&S headquarters, and the Department of Environment sustainability. Management is in charge of all issues regarding environmental in the country. The Department of Environmental Management is responsible for facilitating and coordinating the development and implementation of policies, programmes and projects on the environment in order to ensure sustainable management and conservation of the environment. 2. Zambia Environment The Environmental Management Act establishes the Zambia ZEMA will be responsible for providing Management Authority Environmental Management Agency (ZEMA). ZEMA is a guidance on the applicable E&S risk (ZEMA) statutory body, and the following are the main functions of management instrument to be applied ZEMA:. based on the screening results and ZEMA reviews project TORs, reviews and approves EPBs and approving EIAs of proposed infrastructural ESIAs, monitors environmental compliance advice on land-use developments in the Program.. planning and ensures that environmental management is The implementing agencies will liaise with integrated into development policies, Programs, plans and ZEMA in monitoring compliance and projects. implementation of ESMPs. ZEMA will also play a critical role in undertaking the capacity building of implementing agencies. 3. The Ministry of Lands The Forestry Department is mandated to manage state forest The Forestry Department will approve any and Natural Resources- reserves; enforce national regulations related to the use and transmission lines and any activities in or Forestry Department: harvesting of forest resources on state and customary lands. traversing through gazetted conservation The department provides guidelines and supervision for areas (Public Forests). These activities must 19 ESSA for Zambia NEAT Program Institution Responsibilities Relevance to the program management, restoration, and establishment of forests. The be subjected to Forest Act requirements, Forestry department will be responsible for implementation of including EIA and consultation with the Community Forest Management (CFM) and Natural Forest Forest department Regeneration. The department will provide oversight on the management of forest reserves. According to section 5 of the Forests Act, No. 4 of 2015, the main function of the Forest Department is the rationalization of the exploitation of forest resources and the promotion of sustainable forest management. 4. Occupational Health The Occupational Health and Safety Institute is a semi- OSHI will consider, register and supervise and Safety Institute autonomous institution under the Ministry of Labour. It serves construction sites for proposed (OHSI) as an adviser to the Minister of Labour on occupational health infrastructure as workplaces, receive and safety matters. Its overall mandate is to provide mandated periodic and ad hoc reports from comprehensive, specialized occupational health care of REA and ZESCO, and inspect workplaces for optimal quality, responsive to the needs of industry and compliance with the OSHA, 2010 and WIBA, workplaces in Zambia. The functions of the Institute are to: 2007. • develop and implement programs to provide incentives for employers to implement measures to eliminate or reduce risks to health or safety or to improve occupational hygiene, occupational health, and safety • investigate and detect occupational diseases and injuries at workplaces • conduct medical examinations for occupational health and safety purposes catering for all industries including agriculture and construction • provide an occupational laboratory service • promote studies and carry out investigations and research on occupational health and safety • prepare and maintain statistics on employee’s morbidity and mortality • conduct and encourage awareness educational programmes relating to the promotion of occupational health and safety; and • carry out such other functions as are necessary or incidental to the performance of its functions under this Act. 5. National Council for National Council for Construction (NCC) is a statutory body NCC will register contractors and works Construction governed by the National Council for Construction Act No. 10 supervisors involved in rolling out Program (NCC) of 2020 under the Laws of Zambia. NCC is charged with the activities of construction and maintenance responsibility of providing for the promotion, development, of the proposed subprojects under the training and regulation of the construction Industry in Zambia program. including to regulate, promote and build capacity of the construction industry for sustainable infrastructure development. 20 ESSA for Zambia NEAT Program 5.2 Institutional Framework for Social Management Systems Table 5-2:: Institutions responsible for Social Risk Management Institution Responsibilities Relevance to the program 1. Office of the President, The Gender Division (formerly known as Ministry of Gender) The inclusion and gender equity are two Gender Division is a Division under the Office of the President. It is responsible agenda items that are of great importance for coordinating and monitoring the effective implementation to the World Bank, and this is one of the of Gender policies with other government Line Ministries and division that would support the MoE and the cooperating partners. The Division is committed to protecting implementing agencies in ensuring these and promoting women’s rights, curbing Gender-Based are mainstreamed in the Program. In Violence (GBV) and reducing gender inequalities by making addition, the division will play a key role in progressive changes to legislation to strengthen the protective working with the Implementing agencies in environment. It aims to prioritize the advancement of women curbing program related GBV cases during and strengthen their capacity to influence decision-making at project implementation. the highest level on matters pertaining to gender equity and equality 2. Ministry of Community The ministry in its vision if to facilitate the provision of DCD is well represented in all the wards Development and equitable Basic Social Protection services for inclusive across Zambia and very familiar with Social Services (MCDSS) sustainable human and community development, The Ministry community mobilization and sensitization implements Basic Social Protection Services that seek to on government programs to enhance the provide social assistance and promotional services (livelihood livelihoods of the communities, including and empowerment) to the poor and vulnerable of our society. the poor and vulnerable groups. The services provided are aimed at enhancing human DCC will work with the implementing development and accelerating national development. The agencies in subprojects identification, Zambia Agency for Persons with Disabilities falls under this especially in areas that are not widely ministry. covered by the grid and requires 3. Department of The Department under the Ministry of Community interventions to serve the poor and Community Development and Social Services is mandated to enhance the marginalized groups. Development (DCD), livelihoods of the poor and vulnerable but viable people under MCDSS through the collective efforts to improve the social, economic and cultural conditions of the communities for sustainability, poverty reduction and national development. The Department of Community Development is responsible for the socio-economic empowerment of the poor and vulnerable but viable households with various Social Protection interventions to enhance their livelihoods for self-sustainability and poverty reduction. This is done through the implementation of the various livelihoods and empowerment enhancing programmes in all the 116 Districts across the Country. The approach to Community Development is one that is community driven and people centred to enhance the human development and ultimately the socio-economic development of the targeted beneficiary households. 4. Ministry of Labour and In accordance with Government Gazette Notice No. 1123 of The ministry will support in management of Social Security (MoLSS) 2021, the Ministry implements Basic Social Protection Services Program social risks and impacts on labour that seek to provide social assistance and promotional services related issues such as child labour, labour and is responsible for the following portfolio functions: discrimination, among others to identify • Employment Policy and mitigate related social risks during • Social Security Policy project inception, implementation, and • Labour Policy operation phases. • Educational and Occupational Assessment Services The Department will be expected to carry • Occupational Safety and Health Services out inspections for compliance with the • Industrial and Labour Relations labour laws and preside over the resolution • Monitoring Productivity of labour disputes that may arise in Program 5. Labour Department The Labour Department through the Ministry of Labour and implementation. under MoLSS Social Security (MoLSS) has been given the mandate to provide 21 ESSA for Zambia NEAT Program Institution Responsibilities Relevance to the program the policy and legal framework on administration and management of labour. This Department administers and enforces Labour laws, mitigates in promotion and maintenance of Industrial peace and harmony; settlement of disputes pertaining to Industrial and Labour relations matters, as well as ensuring that there is full protection of workers and employers’ rights, in a safe working environment through inter alia Labour Inspections. The Department comprises three units namely Industrial Relations, Labour Inspection and Employment Units. 6. Community-Level Zambia has a tiered structure of development committees This 3-tier elective structure (Councillors, Political Structures which include Zone Development Committees (ZDC), Ward WDC and Zonal leaders) is significant for the Development Committees (WDC), and District Development proposed Project for its potential to assist in Coordinating Committees (DDC). The ZDCs operate at the communications and information neighborhood level and each ZDC is represented by the ZDC dissemination and stakeholder Chairperson plus another member of the ZDC (must be 1 male engagement, grievance resolution, and 1 female) in the next administrative level which is the announcement and the implementation of WDC. Each WDC also has an elected Area Councilor (also cut-off notices. commonly referred to as the Ward Councilor) who operates as an ex-officio member of the WDC and who endorses decisions The constitution has provided an added made at the WDC level. measure of stakeholder interest in ensuring the proposed project is carried out with full Decisions for programs/projects made at the WDC level are and meaningful consultation and that submitted to the District Development Coordinating compensation for loss of any asset or Committee (DDCC) level which comprises all Government income is done according to expectations of Heads of Departments at the District level, and all Heads of equity and efficiency with a well-functioning Department at LCC, and is chaired by the District grievance system. Commissioner. The next and highest level in the tiered structure is the District Development Committee which is composed of the same membership of the DDCC, plus the Town Clerk who acts as the secretariat. The role of these representatives is to prioritize and address the various issues consolidated through the lower tiers and to administrate the matching program or project priorities with funds from the Ministry of Local Government. 22 ESSA for Zambia NEAT Program 6 Capacity Assessment For Managing Program ESHSEffects 47. This section analyses the performance of key implementing institutions/agencies associated with the ESHS legal/regulatory framework for the proposed Program. The section also highlights the challenges of the institutional framework along with an assessment of the current capacities. Further, the section analyses the processes of planning, monitoring, and decision making in the Program, the strategy adopted by the country, and the current grievance redress systems in place; all from an ESHS perspective. 48. The ESSA team assessed the quality and efficacy of the ESHS management system, particularly focusing on institutional capacity, structure, practices, procedures, mechanisms, and effectiveness of Ministries, Departments and Agencies (MDAs) tasked with ESHS management in Zambia at national and regional levels, and the agencies that will be involved directly in implementing the proposed program.. The team also consulted with the implementing agencies and stakeholders, to understand their role in the implementation of this Program. The assessment was conducted based on previous similar engagements of the systems within these institutions, and their performance records on IPF projects funded by WB since PforR is a new financing instrument in Zambia. 6.1 Environmental, Health and Safety Management Systems 6.1.1 National Environment Management Agency (ZEMA) Policy and Legislative Framework Support 49. Zambia has a robust legal framework for environmental management, known as Environmental Management Act (EMA), which provides the legal ground for the establishment of ZEMA as well as other institutions responsible for the protection and management of the environment. Several guidelines and regulations have also been prepared by ZEMA including environmental impact assessment/environmental assessment (EIA/EA) regulations, which are aimed at ensuring that projects are subjected to E&S risk analysis to determine their likely adverse impacts before commencement. ZEMA is mandated by the EMA, 2011, to commit resources and implement actions necessary for effective E&S management. 50. ZEMA is charged with enforcing EMA’s provisions which include providing for a legal and institutional framework for sustainable management of the environment, prevention and control pollution, waste management, environmental quality standards and public participation. Furthermore, it gives ZEMA mandates to undertake environmental enforcement and compliance; review and monitoring of environmental impacts assessments; research, facilitate public participation in environmental decision-making, raise environmental awareness and collect and disseminate environmental information. Thus, ZEMA’s main task is to review and recommend for approval of environment impact statements; identify projects and programmes or types of projects and programmes, for which environmental audit or environmental monitoring must be conducted under this Act; enforce and ensure compliance of the national environmental quality standards; and initiate and evolve procedures and safeguards for the prevention of accidents which may cause environmental degradation and evolve remedial measures where accidents occur. 51. ZEMA has extensive experience in environmental assessment and management capacity (including monitoring and enforcement) as provided for by the EMA. However, the EMA ‘as written’ has gaps in addressing social issues as mandated by law and in practice. ZEMA has limited internal 23 ESSA for Zambia NEAT Program capacity to review social risks, with poor coordination and collaboration with the departments responsible for social risks management such as the Gender division, department of social security and protection under the Ministry of Labour and Social Security (MLSS), Ministry of Community Development and Social Services (MCDSS), Occupational Health and Safety Institute (OSHI), among others to support in this role. 52. ZEMA is also in charge of reviewing but not approving Resettlement Action Plans (RAP), with only advisory role on the report. In addition, NEMA is not in charge of overseeing the RAP activities, with the role left to the implementing agencies themselves. . Currently, Zambia does not have an institution mandated to “approve� and oversee RAPs. See Section 6.3.3 for more information. 53. Where established, Environmental Units at Regional level and offices at district level are the collaborating partners in the EIA process. The linkages between ZEMA and the Regional environmental units and district offices are legally binding to ensure clear lines of command to facilitate effective implementation. However, not all Regional units are operational, and therefore some of the Regional units are stretched outside their areas of jurisdictions. Organization and Program Structure 54. To fulfil its functions ZEMA works through linkages to institutions established by the EMA at different administration levels including environment units and departments in all ministries, environmental management offices and environmental committees at the regional and district levels. Within each ministry, it is the Environmental Section’s responsibility to ensure that environmental concerns are integrated into the ministry’s social economic developmental planning and project implementation to ensure attainment of environmental sustainability. Human Resources 55. The ZEMA officers at the head office and zonal offices are well qualified and possess the requisite skills necessary for ensuring environmental assessments (i.e. ESIA, Audit ) are compliant with regulatory requirements. However, the zonal offices are understaffed, and some are large in terms of landmass, limiting the capacity of ZEMA to handle the workload of EIA reports reviews, monitoring for compliance, and enforcement. ZEMA officers, therefore, focus mostly on the review and monitoring of high-risk projects at the expense of other projects. Moreover, the combination of a number of small developments in one area can lead to potential cumulative impacts, each contributing to a part of the overall harm to the environment. 56. ZEMA’s lack of sufficient resources creates a situation where projects with possibly huge impacts on the environment are not regularly supervised or monitored to ensure that they are complying with license obligations and regulations, or implementing mitigation measures. In the end, monitoring is often left to self-monitoring by the proponent of a project with little oversight from ZEMA independent view particularly at districts and other lower levels. Challenges at ZEMA on ESHS Management 57. The main challenges of ZEMA at the national and regional levels are: i. Understaffing within the organization to enhance Compliance levels at the national and district levels. ii. Lack of financial resources, technical equipment, and transportation allocation for effective monitoring and supervision; iii. Poor coordination with other multi-agencies in charge of managing construction activities, ESHS risks management; iv. Political interference which results to non-compliance on ESHS process and management, with preference given to development; and 24 ESSA for Zambia NEAT Program Recommendations to enhance ESHS Management for the program 58. The following is recommended to enhance ESHS management for ZEMA. i. Integrate ZEMA early into the program planning process, including participating in screening of ESHS risks for the sub-projects. ii. Collaborate with ZEMA to upscale public awareness and education, and capacity building of the ZEMA officers at the district levels, program’s implementation agencies, and contractors’ workers on ESHMP implementation to enhance compliance. 6.2 Occupational Safety and Health Institute (OSHI) Policy and Legislative Framework Support 59. OSHI was set up in 2010 under the OSHA, 2010, under the Ministry of Health, to administer occupational health and safety at workplaces in the country. The role of OSHA is to improve health and safety (wellbeing) of workers and workplaces by promoting occupational health and safe practices in order to eliminate occupational accidents and diseases, hence achieve better productivity in the workplaces. 60. The Ministry of Health is the main actor with the oversight role of ensuring that decent work is practiced and maintained in Zambia. It provides directives, technical advice, enforces legislations, proposes amendments, allocates resources, oversees all activities carried out by OSHI and ensures that occupational safety and health rules and regulations, (OSHA, Factories Act, Energy Regulation Act, Workers Benefits, etc) are adhered to and maintained at workplaces. 61. In fulfilment of its responsibility of identifying hazards at workplaces and assessment of risks with a view of preventing accidents, diseases and damage to property, OSHI will play a key role in the program by inspecting and auditing of workplaces to promote best practices and ensure compliance with safety and health standards as set out in Occupational Health and Safety Act, Factories Act, of and other subsidiary legislations. Institutional Capacity and Resources 62. The department has offices in 5 major industrial cities and towns in the country and these include Lusaka (Headquarters), Kabwe, Kitwe, Livingstone and Ndola. The officers at these zones are qualified and possess the requisite skills necessary for managing health and safety risks. However, the offices are understaffed, with the capacity assessment findings revealing that most officers are not able to cover their regions within the zones as required. The officers are also not given enough resources (including budget) to cover the wide regions assigned. This has made it difficult for the staff to enforce and monitor the health and safety requirements as per the OSHA and other relevant Acts and legislations, especially for infrastructure projects. Challenges at OSHI on OSH Management 63. Some of the challenges faced by the institute include but not limited to: i. Overlap in legislative and other institutional mandates makes it difficult in the execution of some functions of OSHI; ii. Lack of presence in all the districts; iii. Inadequate staffing levels at the district levels; iv. High turnover of professional staff in OSH institutions v. Poor coordination with other MDAs on OSH monitoring and supervision; vi. Inadequate allocation of financial resources and provision of other resources such as vehicles, office space, specialized surveillance equipment, vehicles, protective equipment; vii. Lack of continuous professional development of its technical staff; and 25 ESSA for Zambia NEAT Program viii. Lack of information management system to collect and collate OHS data and statistics for policy and decision making. Recommendations to enhance Occupational Health and Safety Management i. Integrate DOSHS early into the program planning process, including participating in the screening of health and safety risks for the sub-projects. ii. Collaborate with OSHI to carry out capacity building of the Program’s implementation agencies, and contractors’ workers on OSH; iii. Create linkages between OSHI with DOSHS, Labour and Public Health Officers at the district levels to augment monitoring of program activities; and iv. The ESHSM manual shall include guidelines on OSH to be adopted by the implementing agencies and contractors for the program’s activities 6.3 Social Management Systems 6.3.1 The Gender Division under the Office of the President 64. The mandate of the Division is to promote gender equality as outlined in the Government Gazette Notice No. 1123 of 2021. The division is responsible for coordinating and monitoring the effective implementation of Gender policies with other government Line Ministries and cooperating partners. The Division is committed to protecting and promoting women’s rights, curbing Gender- Based Violence (GBV) and reducing gender inequalities by making progressive changes to legislation to strengthen the protective environment. It aims to prioritize the advancement of women and strengthen their capacity to influence decision-making at the highest level on matters pertaining to gender equity and equality. 65. The specific functions of the Division are outlined in the Government Gazette Notice No. 1123 of 2021 which includes Gender policy formulation and mainstreaming ; management of Gender Based Violence; Gender Equity and Equality; formulation and implementation of National Gender Policy; and economic empowerment of women. 66. The Division also have other directorates relevant to the program which are: Department of Gender Rights and Protection - responsible for promoting the rights of women and co ordinating the implementation of the Anti-Gender Based Violence (Anti-GBV) programmes in the nation) and Gender in Development Department - responsible for coordinating, monitoring and evaluating the implementation of the National Gender Policy in order to facilitate gender responsive development. It is also responsible for mainstreaming gender in all Government Institutions, including the Local Authorities. The Division has an existing online mechanisms for reporting GBV related incidents. 67. The Division is currently developing a GBV-IMIS and GMIS on its website for data management and reporting of GBV cases and gender mainstreaming data. The division has developed a National GBV Dashboard with Referral Pathway under the EU funded Natwampane programme. The dashboard is primarily targeted towards GBV response service providers as well as GBV implementing partners. The referral pathway is a flexible mechanism that safely links survivors and those at risk of GBV to qualified, supportive and competent services that she or he may need as a result of the violence experienced. Challenges at Gender Division Social Risk Management 68. Some of the challenges faced by the Division include but not limited to: i. Lack of representation in all the districts; ii. Lack of technical skills with the limited staff; 26 ESSA for Zambia NEAT Program iii. Lack of presence in all the districts; iv. Poor coordination with other MDAs on Gender mainstreaming and monitoring, GBV cases, etc; v. Inadequate allocation of financial resources and provision of other resources such as vehicles and office space to properly execute its mandate; Recommendations to enhance Social Risk Management i. The ESHSM manual shall include guidelines to be adopted by the implementing agencies and contractors for the program’s activities. The NPCT will consult with the Gender division and related departments on the developed guidelines for concurrence. ii. Integrate the Gender Division early into the program planning process, including participating in the screening of social risks for the sub-projects. iii. Collaborate with the division and directorates to carry out Capacity building through training to the program’s implementation agencies, and contractors’ workers on social risks, especially on GBV iv. Collaborate with the Gender division offices at the district levels to supervise and monitor issues related to contractors workers, especially GBV and other social risks for compliance 6.3.2 Department of Community Development (DCD) 69. The Department of Community Development (DCD), under Ministry of Community Development and Social Services (MCDSC) is responsible for the socio-economic empowerment of the poor and vulnerable but viable households with various Social Protection interventions to enhance their livelihoods for self-sustainability and poverty reduction. will provide the overall technical direction and oversight in the development and sustainability of the program in consultations with the NPCT and implementing agencies. The DCD will continually conduct reviews of the proposed program interventions and provide recommendations and guidelines to the Local Governments for improvement and streamlining safeguards. 70. The DCD is well represented at all ward levels in the 116 districts across the country, with about 9,000 officers responsible for community coordination and mobilization. The DCD also coordinates the formation of Community Development Committees (CMU), which are responsible for coordination and management of development activities at the local levels. Challenges at DCD on Social Risk Management 71. Some of the challenges faced by the DCD include but not limited to: i. Capacity building of community mobilization committees (CMM) through enhancing their skills to manage social risks at the local levels, including GBV training ii. Inadequate allocation of financial resources and provision of other resources such as mobility allowances to properly execute its mandate iii. Poor coordination with other MDAs leading to waste of resources and duplication of activities Recommendations to enhance Social Risk Management i. Integrate the DCD in the planning process, to assist in subproject identification that will have the greatest impact in improvement of the social, economic and cultural conditions of the communities for sustainability, poverty reduction and national development. ii. Collaborate and utilize extensive DCD networks at the local levels to carry out stakeholder mapping, mobilization and engagement; iii. Utilize existing GRM systems set by DCD fpr proposed program; 27 ESSA for Zambia NEAT Program iv. Collaborate with the DCD offices at the ward levels to supervise and monitor issues related to community concerns, contractors workers, especially GBV and other social risks for compliance 6.3.3 Department of Resettlement (DoR) 72. The role of the Department of Resettlement (DoR) under the Office of the Vice President is to resettle targeted citizens both on voluntary and involuntary basis in order to provide them with an alternative livelihood while uplifting living standards of the rural communities. The targeted citizens for resettlement includes the unemployed, retired, internally displaced persons, physically challenged and those still in employment but are above 45 years. It also coordinates the provision of infrastructure in government resettlement schemes in order to make them socially and economically viable. The infrastructure provided in resettlement schemes includes access roads, schools, health facilities, boreholes and agricultural storage sheds among others. In addition, the department is charged with the responsibility of collecting and analyzing statistics on the implementation of resettlement programmes. 73. The department is represented in all the 12 provinces, and is staffed with 12 employees, mainly at the headquarters in Lusaka. The department oversees resettlement of government programs but not fully mandated to take a leading role in Resettlement activities for projects undertaken by other government agencies. Although the department is tasked with resettlement activities, it is only involved in the review and giving professional opinion on the Resettlement Action Plans (RAP) to implementing agencies (such as ZESCO, REA, road agencies, among others), and not involved directly with resettlement activities of infrastructure projects implemented by the agencies. Currently, Zambia does not have an institution mandated to “approve� and oversee implementation of RAP. This is a gap that has been identified in this ESSA report. The Department has prepared Draft National Resettlement Policy and guidelines on resettlement, which will try to address this shortcoming. Challenges at DoR on Social Risk Management 74. Some of the challenges faced by the DCD include but not limited to: i. Lack of clear legal legislation and guidelines on the Resettlement, including the mandate of the DoR ii. Lack of resources (financial and technical capacity) to manage resettlement activities effectively; iii. Poor coordination with other MDAs on resettlement activities – each agency undertakes its own resettlement activities without oversight role by the Department of Resettlement; iv. Lack of functional GRM systems to receive complains from the affected persons Recommendations to enhance Social Risk Management i. Assist the DoR in development and enactment of Resettlement Policy and guidelines; ii. Assist the DoR to form and operationalize a functional GRM to receive complaints; 6.4 Program Implementing agencies 75. ZESCO and REA will be the key implementing agencies, including preparation, implementation, supervision, and monitoring of ESHS risks and mitigation measures of the project activities they will be undertaking under the proposed program. The National Project Coordination 28 ESSA for Zambia NEAT Program Unit (NPCU) at the Ministry of Energy (MoE) will provide oversight roles, including policy guidance and ensuring compliance of ESHS management as provided in the POM guidelines. 6.5 ZESCO Organizational Structure for ESHS Risk Management 76. ZESCO Limited is a vertically integrated power utility and is responsible for generation, transmission, distribution and supply of electricity in the country. The company is the dominant participant in the electricity market in Zambia. Its generation capacity stands at 2,348 Mega Watts (MW) with customer base of 1,000,000 as at the end of the third quarter of 2019. In 2000, Government embarked on a commercialization program for ZESCO with the aim of making the company financially viable. However, the commercialization of ZESCO has not been fully attained largely due to non-cost reflective tariffs. In addition, the Single Buyer Model has contributed to ZESCO’s challenges as it compels the company to purchase all power produced by Independent Power Producers (IPPs). In order to address the challenges that the company is encountering, the Government has embarked on electricity sector reforms. 77. The organization is guided by the Environmental Management Act (EMA), Forest Act, Electricity Act, National Heritage Conservation Commission, the Occupational Safety and Health Act, 2010, among others, and endeavours to ensure environmental and social sustainability and compliance with the requirements of these Acts for its projects, including environmental audits, conducting EIAs, and RAP preparation where applicable. ZESCO has developed a Draft Gender Policy to guid in gender mainstreaming initiatives within the company. 78. Overall, assessment of ZESCO capacity to manage ESHS was found to be adequate. ZESCO has been implementing safeguards for the ESAP project funded by the WB. While ZESCO is familiar with safeguards implementation on World Bank ESF, the organization has not undertaken any PforR projects before. The company has a 2022 certification from International Organization for Standardization ( ISO), ISO 45001 -standard for management systems of occupational health and safety (OHS), 2018. 79. ZESCO has a Safety, Health, Environment and Quality (SHEQ) and Environment Sustainability (ES) Departments (which also covers social), under the Projects and Planning division. The Environment department is staffed by 41 staff consisting of 11 Social specialist, 16 Environment, and 12 wayleave staffs, with 2 heads leading Northern and Southern regions respectively. An employee gap analysis was conducted to identify the Environment department needs, which recommended 80 additional officers to manage safeguards to be distributed across regional offices in the country. 80. ZESCO’s SHEQ department is more focussed on the operational side of checking safety and health of employees, safety operations of plants and equipment, with little or no focus on construction workers and public safety and health during construction of infrastructure projects. Consultations with ZESCO indicated that there were a number of accidents from the project activities across the country. Consultations also indicated that there are no systems to conduct project risks assessments, identify hazards and risk mitigation measures on work sites, or other controls such as site induction and training, emergency incident and management, monitoring, inspections and compliance, to ensure inclusion of OHS measures which are critical safety and health procedures in the energy sector. 81. During the stakeholder consultations, there was a general consensus that SHE department should be more active in project planning, monitoring and supervision to make it more effective in its performance, and to strengthen the company’s capacity to give a wholesome approach to OSH management by adopting risk management strategies to ensure compliance of good safety and health practices during construction of its infrastructure projects. 29 ESSA for Zambia NEAT Program 82. ZESCO does not have a formal functional GRM systems in place to manage complains on its project activities. However, ZESCO has however benefited from capacity building provided by the Bank through training of the safeguards team on grievance handling. A GRM for Electricity Service Access Project (ESAP) was set up, and although it has encountered some challenges of operationalization, such as poor handling mechanisms, inadequate tracking system, and poor management of grievances. Challenges i. Lack of coordination with other relevant authorities and agencies in charge of managing ESHS risks such as ZEMA, DCD, DoR, Gender division during project activities; i. Lack of structured GRM to receive grievances; ii. The SHEQ department is not involved in project planning, monitoring and supervision of project construction activities; iii. There is poor mechanisms that have been put in place to manage GBV risks for projects, leading to increase of such cases for the projects under ZESCO. Recommendations to enhance ESHS Management for ZESCO i. Capacity building through training of ZESCO safeguards staff on managing GBV cases, including setting up referral pathways for survivors; ii. Assist the ZESCO to form and operationalize a functional GRM to receive complaints; iii. Enhance collaboration and coordination with other institutions managing ESHS aspects such as ZEMA, DCD, Gender division, and Resettlement department; and iv. ZESCO to develop an Environmental, Social, Health and Safety risks and impacts management (EHSRIM) manual for adoption in all its infrastructure projects 6.6 REA Organizational Structure for ESHS Risk Management 83. In order to accelerate electricity access in rural areas, Government of Zambia established the Rural Electrification Authority (REA) through the enactment of the Rural Electrification Act No. 20 of 2003. The mandate of REA is to provide electricity infrastructure to rural areas of Zambia using appropriate technologies. The access rate for grid connected households stands at 4.4 percent while an additional 7.4 percent are connected to solar home systems. There is limited participation of the private sector in the provision of electricity in rural areas, were 60 percent of the populace reside. In addition, there is no mechanism to coordinate players in rural electrification especially in the off-grid space. Further, the Authority is faced with the challenge of inadequate funding to fulfil its mandate. 84. REA has a Safeguards Unit, staffed with Environmental (2) and Social Specialists (2), with experience in handling ESHS aspects under the Strategy and Planning Department. The capacity of the staff at REA has been enhanced through the ongoing ESAP project, especially through training, although the staffing is still not adequate.. The staff at REA headquarters is supplemented by 4 Wayleave officers in 4 regions, and additional Community Mobilization Units to assist in community participation and management during wayleave acquisition. Under the new proposed organizational structure at REA, a Safety Health and Environment (SHE) department has been proposed to be introduced. 85. Just like ZESCO, the organization is guided by the Environmental Management Act (EMA), Forest Act, Electricity Act, National Heritage Conservation Commission, the Occupational Safety and Health Act, 2010, among others, and endeavours to ensure environmental and social sustainability and compliance with the requirements of these Acts for its projects, including environmental audits, conducting EIAs, and RAP preparation where applicable. 86. Overall, assessment of REA capacity to manage ESHS was found to be adequate. REA has been implementing safeguards for the ESAP project funded by the WB. However, the organization has not 30 ESSA for Zambia NEAT Program undertaken any PforR projects before, but is familiar with safeguards implementation on World Bank ESF. , Challenges i. Lack of coordination with other relevant authorities and agencies in charge of managing ESHS risks such as ZEMA, DCD, DoR, Gender division during project activities ii. REA does not have a structured and functional GRM in place iii. The company does not have a dedicated safeguards unit iv. There are no mechanisms that have been put in place to manage GBV risks for projects Recommendations to enhance ESHS Management for ZESCO i. Assist REA to form and operationalize a functional GRM to receive complaints; ii. Enhance collaboration and coordination with other institutions managing ESHS aspects such as ZEMA, DCD, Gender division, and Resettlement department; and iii. Need for capacity building through training of REA safeguards staff on managing GBV cases, including setting up referral pathways for survivors; iv. ZESCO to develop an Environmental, Social, Health and Safety risks management (EHSRM) manual for adoption in all its infrastructure projects v. Review the requirement of the organization to adequately staff the ESHS Unit to comply with the requirements of the law and regulations. vi. Strengthen the reporting and documentation process, including tracking of complains from the projects 31 ESSA for Zambia NEAT Program 7 Environmental, Social, Health and Safety Systems Assessment in Relation to the PforR Core Principles and Planning Elements 87. This chapter summarizes the operational performance, and capacity of institutions mandated to manage ESHS risks and impacts associated with the Program interventions. The assessment has analysed the defined national systems with the aim of confirming their consistency with the PforR financing Core Principles and Key Planning Elements. as defined in policies, legal and regulatory framework, procedures, guidelines and consistency with the core principles and key planning elements of PforR financing. 88. The summary discusses the applicability of the six core principles in terms of strength, weakness, opportunities, and threats/risks with respect to the policy and legal framework, institutional context and existing environment and social management system. The Approach applied entails: i. An analysis of the strengths of the existing ESHS system, as it functions effectively and efficiently and it’s consistent with Bank Policy and Directive for Program-for-Results Financing. ii. Identification of system weaknesses, capacity constraints and gaps in the existing national and district levels. Considering the inconsistencies and gaps with the Bank Policy and Directive for Program-for-Results Financing. iii. Identification of opportunities and key actions to strengthen the existing system to ensure environmental and social soundness and long-term sustainability in line with the design, construction, and operation phases of Program interventions. iv. System and capacity assessments that identified gaps and opportunities which informed the Program design recommendations and Program Action Plan (PAP) for enhanced ESHS management 89. From the ESSA findings, it is evident that the national system is comprehensive and adequate for the management of many ESHS aspects, and is, overall, materially consistent with the Six PforR Core principles. However, gaps have been noted in ESHS management system both as written and as being implemented by ZESCO and REA, and the other relevant Ministries, Departments and Agencies (MDAs). The gaps are a potential risk to the effective management of program ESHS effects, and will need to be strengthened to enable ZESCO and REA to effectively manage these potential risks of the proposed program. Table 7-1 below provides a detailed comparative analysis of the national system against the Six PforR Core principles. The analysis has incorporated the findings of the ESSA stakeholder consultations conducted for the program. 32 ESSA for Zambia NEAT Program Table 7-1: ESSA Findings against the six Core Principles Core Principle 1: General Principle of Environment and Social Management Bank Policy for Program-for-Results Financing: Environmental and social management procedures and processes are designed to: a) promote environmental and social sustainability in Program design. b) avoid, minimize, or mitigate against adverse impacts; and c) promote informed decision-making relating to a program’s environmental and social effects. Bank Directive for Program-for-Results Financing: Program procedures will: a) Operate within an adequate legal and regulatory framework to guide environmental and social impact assessments at the program level. b) Incorporate recognized elements of environmental and social assessment good practice, including: • early screening of potential effects of all projects. • consideration of strategic, technical, and site alternatives (including the “no action� alternative). • explicit assessment of potential induced, cumulative, and trans-boundary impacts. • identification of measures to mitigate adverse environmental or social impacts that cannot be otherwise avoided or minimized. • clear articulation of institutional responsibilities and resources to support implementation of plans. • Responsiveness and accountability through stakeholder consultation, timely dissemination of program information, and • responsive grievance redress measures. Applicability: Applicable Core Principle 1 is considered relevant and fully applicable in terms of environmental, health and social (EHS) for the Program. Investments to be undertaken under RA 3 of the program will range from small to large scale infrastructures, such as as rehabilitation, expansion, and/or construction of new distribution network, upgrade and modernization of substations, new grid connections toward universal access, and climate resilient infrastructure, among others. Implementation of these type of investments are likely to have a physical footprint with varying degree of EH&S risks and impacts during the lifecycle of the investments (construction, operation, and maintenance, and during decommissioning phases). Although expected to be localized, manageable and in some cases temporal, these risks and impacts will require mitigation. This therefore requires undertaking EH&S assessment and providing appropriate mitigation measures to adverse risks and impacts. Potential impacts will include (but not limited to) solid and liquid waste generation from project activities, destruction of crops, vegetation and trees to pave way for construction of HV, MV and LV lines, occupational and community health and safety risks associated with civil and electrical works, elite capture limiting appropriate targeting of last mile connectivity, risks associated with wayleave acquisition for transmission lines without compensations, land acquisition for construction of the new sub stations, SEA-H and GBV risks to communities from project workers; exclusion of VMGs and vulnerable households and individuals from electricity access due socio economic barriers, among others. Program-related activities will, therefore, be required to undertake environmental, social, health and Safety (ESHS) assessments, and to provide and implement appropriate measures to mitigate adverse risks and impacts. STRENGTHS WEAKNESSES • The national system provides a comprehensive framework for environmental screening, impact • The implementation of the existing legal/regulatory provisions face challenges due to lack assessment, and management consistent with the core principles outlined in Program for Results of adequate and qualified staff with the right skill set within the LAs and CUs to manage Financing. However, it is weak in social screening and assessment. E&S risks. • Existing legislation also helps minimize or mitigate possible adverse impacts on the natural • The National EIA system mainly focuses on environmental aspects and does not habitats, archaeological sites, and cultural resources. comprehensively cover the social, health and safety issues such as on labour, • The country has developed policies and legislation on public participation and social occupational/community health and safety, land management, GBV, SEA-H among others development. • The implementing Agencies lack enough and qualified human capacity to support Environmental and Social Management Systems (ESMS) of the Program. 33 ESSA for Zambia NEAT Program • There is also a well-defined policy framework to enhance transparency on the development • The social risk management (SRM) systems are not well defined, developed, and projects, including requirements that all EIAs have to go through public participation and access coordinated. Relevant SRM laws are fragmented across different ministries and to environmental information. departments which makes implementation of social risks management difficult to • The Environmental Management Act (EMA) 2011, and associated Regulations, stipulates coordinate . guidelines for conducting EIAs, audits, and field study and outlines the structure of EIAs and Audit • Insufficient capacity building activities on implementing agency, regional organizational reports. The legislation also explicitly outlines the legal consequences of partial or non- structures, and regional environmental and social officers to ensure compliance to compliance to the provisions of EMA. required environmental and social standards during project implementation • ZEMA has a website (https://ezema.zema.org.zm/login) dedicated to filing complains • There is general appreciation on the need to undertake stakeholder consultations during • ZEMA is obligated to work with other agencies such as the Wildlife department, Forestry Service the inception, preparation, implementation, and operational phases of the project. Energy, etc to ensure regulations under the EMA are addressed. However, EIA public participation forums do not target the relevant stakeholders and therefore not capturing significant environmental and social risks and impacts. Meaningful public participation is not attained as there are gaps on public consultation notices, allocated duration, documentation, and feedback to the public of scheduled sessions. • Project proponents have prioritized budgets to implement physical projects and to obtain a ZEMA license, with little or no allocation of budget for ESMP implementation unless it is a donor-funded project. ZEMA is unable to enforce project proponents ESMP budgets. • There is limited involvement of E&S staff during project design, which result to challenges in accessing funds for stakeholder engagement, implementation and monitoring of ESMP and RAP due to capacity (competence and adequacy) and financial constraints. • Lack of integrating ESHS clauses as part of the bidding/contract documents which makes it difficult to enhance compliance during project implementation by implementing agencies. • Weak multi-sectoral coordination and collaboration with key MDAs such as ZEMA, OSHI, NCC, Ministry of Lands, Gender Division, etc useful in providing technical advice and monitoring of E&S risks in investments. • Low budget allocation and other resources for oversight authorities such as ZEMA, OSHI, Social, Gender, Children, Labour Officers (etc), (and Local Governments) for Environmental and Social management leading to poor compliance of ESHS management. • Poor compliance with national environmental regulations and good practices in waste management, including e-waste management • There are no existing GRM systems at the implementing agencies • Implementing agencies do not have previous experience in Implementing PforR projects • There is weak management of the social aspects of infrastructure projects, as anticipated by Core Principle 1, including the management of anticipated E&S risks under the Program OPPORTUNITIES THREATS/RISKS • The implementing partners will develop ESHS Management Systems for use in the program (and future projects) which will include a screening checklist for enhanced identification of potential • Poor implementation or mainstreaming of existing ESHS risk management regulations in ESHS risks and impacts and risk categorisation program guidelines • The program will assist the LAs in development of appropriate guidelines, screening checklists, • Inadequate social risks identification and assessments at project level as there is no technical options, and manuals to ensure compliance with the national environment and social existing national regulatory body for social risk management and such risks are not legislation for the Program. adequately captured in ESIA reports. • Limited financial allocation and human resource capacity for ESHS risk management. 34 ESSA for Zambia NEAT Program • Enhance the ESHS clauses in the contract and bidding documents to ensure key issues are • Limited supervision, monitoring and reporting on ESHS risk management impeding comprehensively included. Contractors will be required to ensure they have qualified ESHS identification and execution of corrective action plans. personnel, comply with site specific ESMPs prepared for the sub-projects and integrate the ZEMA • Political interference in decision-making on budgets, investment priorities licence conditions, including labour welfare, health and safety aspects in contract management. operationalization of ESHS risk management plans, and compliance. • The Program will partner with ZEMA, OSHI, and other relevant agencies to enhance the capacity of the Implementing agencies on the environmental, social, and health risks’ management based on national laws and regulations such as training and capacity building of E&S officers on the EMA , Gender Division, OHSA, and GBV regulations, and monitoring of investments and enforcements. LEVEL OF RISK - SIGNIFICANT • Allocate adequate budget and resources for ESHS management such as on stakeholder engagement, grievance management, environmental, social, health and safety assessments and monitoring during early project planning stages. • To improve on ESHS documentation, monitoring and reporting, a template should be developed as part of the ESHS management manual. • To improve on E&S monitoring, provide adequate logistical support to E&S officers at the IAs and deepen collaboration with other agencies (ZEMA, OSHI, Gender Division, etc) to enhance E&S compliance monitoring of works site. This can be achieved through organised joint field visits and capacity building on E&S aspects. • Develop a guideline on stakeholder engagement for enhanced targeting, inclusion, consultation, and feedback mechanism. Public consultations should be comprehensive to include i) description of site conditions versus project design considerations; ii) project affected persons (PAP) and beneficiaries; iii) checklist to show the level of participation, and iv) feedback incorporated in project designs. • Develop and roll-out GRM guidelines at ZESCO and REA i) that will be functional and operational; ii) incorporate a GBV referral pathway and referral system hotline to addressing GBV/SEAH issues; iii) Ensure the GRM is gender responsive and accessible to all persons, iv) have a comprehensive system for documenting grievances with feedback mechanisms in place; v) create awareness to the public on the GRM uptake channels and systems; vi) assign a GRM focal person, vii) have a functional and well represented GRM committee, and viii) Build capacity of the GRM focal persons on the mechanism, structure, logging and feedback. Core Principle 2: Natural Habitats and Physical Cultural Resources Program E&S management systems are designed to avoid, minimize, or mitigate adverse impacts on natural habitats and physical cultural resources (PCR) resulting from the Program. Program activities that involve the significant conversion or degradation of critical natural habitats or critical physical cultural heritage are not eligible for PforR financing Bank Directive for Program-for-Results Financing: Program procedures will: a. Includes appropriate measures for early identification and screening of potentially important biodiversity and cultural resource areas. b. Supports and promotes the conservation, maintenance, and rehabilitation of natural habitats; avoids the significant conversion or degradation of critical natural habitats, and if avoiding the significant conversion of natural habitats is not technically feasible, includes measures to mitigate or offset impacts or program activities. c. Takes into account potential adverse effects on physical cultural property and as warranted, provides adequate measures to avoid, minimize, or mitigate such effects. Applicability: Applicable i. The provisions in Core Principle 2 are considered as part of the ESIA process analyzed under Core Principle 1. 35 ESSA for Zambia NEAT Program ii. Core Principle 2 is applicable to the Program due to potential destruction of natural habitats and physical cultural during implementation of interventions such as i) construction and rehabilitation of transmission lines and substations; ii) rehabilitation of distribution lines and connecting new households and businesses, iii. Implementation of these type of investments is likely to have ESHS impacts though expected to be localized, manageable and temporary in nature, and needs to be mitigated. iv. Potential risks impacts may include destruction of crops, vegetation and trees to pave way for construction of transmission lines, destruction of physical cultural resources of value to target communities that may contribute to increased social conflicts v. Program-related activities will, therefore, be required to undertake biodiversity and culture assessments as part of the environmental and social assessments, provide, and implement appropriate measures, to mitigate adverse impacts on natural habitats and physical cultural resources. i. The Program will not support activities that will either impact or convert critical natural habitats or physical cultural resources. STRENGTHS WEAKNESSES • The EIA regulations incorporates the program design and implementation of appropriate The weaknesses identified for Core Principle # 1 apply to Core Principle # 2. measures to minimize or mitigate possible adverse impacts on the natural habitats, Others include; archaeological sites, and cultural resources, with involvement from strong institutions such • Physical cultural heritages are not well documented or exhaustively mapped out at as ZEMA and National Museums Board of Zambia. national and LA levels. Biodiversity • Weak enforcement of civil contracts and laxity in monitoring damage to critical habitats, endangered species, and PCRs during construction. • Article 4 (i) of the EIA regulations require that EIAs take into account biodiversity and natural • Weak staff capacity to assess and monitor the potential impacts on natural habitats lands and physical cultural resources through intense assessment of critical habitats and • Article 24 of EMA Act (2011) gives the Minister may declare an area of land which is endangered species, especially in water catchment areas, due to inadequate technical ecologically fragile or sensitive to be an Environmentally Protected Area capacity and allocation of financial resources. • Budgets necessary for the protection of the critical habitats and PCRs are inadequate Cultural Resources or unavailable, which may result in high risk of destruction/degradation of the same. • Schedule 1 of the EIA regulations require that Project Briefs be prepared for projects located • Limited engagement and coordination of relevant institutions with mandate in in or near areas of cultural or religious significance. management of natural habitats to provide necessary technical support in • The existing legislation for Zambia ESIA process considers physical cultural resources, management of E&S risks relating to such resources. includes screening for archaeological, historical, and cultural sites to ensure environmental • and social sustainability. • Part V of the National Heritage Conservation Commission Act (1989) defines national monuments, provides a list of the main monuments, and defines measures for their protection. • Listed sites are under the control of the National Heritage Conservation Commission (NHCC). • Program will exclude subprojects that have adverse impacts on natural habitats and physical cultural resources 36 ESSA for Zambia NEAT Program OPPORTUNITIES THREATS/RISKS • Due to critical nature of some subprojects under the program (eg construction of transmission • Inability to adequately screen subprojects may lead to adverse impacts to the physical lines through forests), involve multisectoral agencies early in the project design (such as with cultural resources and natural habitats. Forest Service Department, ZEMA) to better identify and develop mitigation and compensation • There is a likely risk of destruction of natural habitats and biodiversity , especially for measures to manage the natural habitats and physical cultural resources during project transmission lines passing through forests and wetlands. implementation. • Limited collaboration between project proponent managing important ecosystems and • Strengthen the screening procedures to include a checklist to assess whether a subproject has physical cultural resources the potential for disturbing and affecting a known cultural or religious site • Allocate sufficient budget and resources for the identification and management of natural habitats and PCRs. LEVEL OF RISK – MODERATE • Improve the level of awareness on safeguarding endangered/threatened natural habitats, climate change and PCRs during stakeholder and public participation Core Principle # 3: Public and Worker Safety Program E&S management systems are designed to protect public and worker safety against the potential risks associated with; a) the construction and/or operation of facilities or other operational practices under the Program; b) exposure to toxic chemicals, hazardous wastes, and otherwise dangerous materials under the Program; and c) reconstruction or rehabilitation of infrastructure located in areas prone to natural hazards. Bank Directive for Program-for-Results Financing: Program procedures will: • Promotes community, individual, and worker health, safety, and security through the safe design, construction, operation, and maintenance of program activities; or, in carrying out activities that may be dependent on existing infrastructure, incorporate safety measures, inspections, or remedial works as appropriate. • Promote measures to address child and forced labor. • Promote the use of recognized good practice in the production, management, storage, transport, and disposal of hazardous materials generated under the program activities. • Promotes the use of integrated pest management practices to manage or reduce pests or disease vectors, and provides training for workers involved in the production, procurement, storage, transport, use, and disposal of hazardous chemicals in accordance with international guidelines and conventions. • Include adequate measures to avoid, minimize, or mitigate community, individual, and worker risks when the program activities are in areas prone to natural hazards such as floods, hurricanes, earthquakes, or other severe weather or climate events. Applicability: Applicable The provisions in Core Principle 3 are considered as part of the ESIA process analyzed under Core Principle 1. Public and worker safety could result under risk through: i. Construction, rehabilitation and operation of transmission lines, construction of substations, and connecting new households. These activities can expose the public and workers to risks such as dust, noise, and air pollution; solid and liquid waste generation; hazardous and noxious wastes from equipment and machinery used; ii. Transformer and backup generator equipment may potentially contain used oils, Polychlorinated Biphenyls (PCBs) which can pollute water and soils, while cooling equipment may contain refrigerants (potential Ozone Depleting Substances, ODSs); iii. Improper and indiscriminate disposal of solid, liquid and e-waste, iv. The risk of GBV, especially SEA-SH amongst project workers and between workers and communities resulting from the influx of workers into sub-project areas; v. The expansion of electricity to last-mile consumers may increase unsafe electricity utilization through, e.g., illegal connections. vi. Child labour; and vii. and the spread of communicable diseases such as HIV/AIDS, STDs, among others 37 ESSA for Zambia NEAT Program STRENGTHS WEAKNESSES • The country has legal statutes and provisions to protect the workers such as the Occupational • The National EIA system does not adequately cover aspects on public and worker’s health Health and Safety Act (OSHA) 2010 and the Workers Compensation Act (WCA), 1994. and safety. This results to ESIA/ESMP prepared not to broadly incorporate the health and • The EIA regulation contains robust procedures and requirement for worker health and safety, safety requirements and mitigation measures. Aspects of community/public heath are not requiring plans for accident prevention as well for health and safety of workers and communities, covered adequately as well. which are also part of contracts for civil works. • Limited awareness, capacity, and enforcement of the relevant provisions at the LA/CU level • The Government’s standard contract conditions for contractors include provisions for public and for addressing community health and safety risks and impacts related to construction sites worker safety (for example, regulations on the use of explosives, provision of barricades at the such as environmental pollution, labour influx risks (GBV- SEAH, spread of HIV/AIDs and construction site, use of personal protection gear by workers, disposal of construction debris and communicable diseases). wastewater, preventing the creation of conditions conducive to disease vectors, etc.). • Limited human and financial resources allocation to OSHI staff at the LA levels, resulting to • The country systems have guidelines/regulations through agencies such as OSH and National poor supervision of infrastructure projects to ensure compliance to required national Construction Council (NCC) on aspects concerning the management of construction sites, standards as per the OSH Act– some provinces do not have OSHI representatives including public and worker safety risks from construction/operation of facilities. • Limited capacity in technical personnel, safety equipment provision, and poor budget • Zambia has Hazardous Waste Control and Management Regulations and the Guidelines for allocation by contractors to comply with national requirements and international good Management of Hazardous Waste which provide detailed requirements on hazardous waste practices management, under EIA regulations 2013. • Poor collaboration and coordination among the various implementing agencies, especially • The Gender division under the Office of the President has developed GBV referral pathways OSHI and Public Health departments, in addressing occupational health and safety related across the country with toll-free numbers and digitized GBV Dashboard to monitor GBV issues, because they are rarely involved in providing health and safety oversight at the cases in Zambia. construction, resulting in inadequate attention to OHS, and public safety concerns. • There is a general lack of awareness for workers on health and safety issues, particularly concerning exposure to workplace safety hazards aspects in hazard-prone areas, e.t.c • Weak workers grievance redress mechanism which fails to address workers complains and concerns on occupational safety and health. • There are weak structures of disposal of hazardous wastes, especially Asbestos, and e- waste, and capacity in the private sector is limited to dispose such waste OPPORTUNITIES THREATS/RISKS • Strengthening of ZESCO and REA systems to manage OHS risks through inclusion of OHS policies • Systematic implementation of OHS provisions requires enhanced awareness in the key in the ESMS sector organizations and strengthened monitoring. • ESIA reports for sub-projects should cover public and workers health and safety requirements. • Improper management and limited enforcement of public and worker safety can result in • Partner with OSHI to improve ESHS awareness and implementation/enforcement capacity physical injuries, including loss of life to the workers and public at and near construction through training and orientations of the ZESCO, REA and contractors’ workers sites. • Identify and update the standard bidding and contracts documents to incorporate specific ESHS • Non-compliance by contractors on ESHS issues, and inaction by implementing relevant measures, including Contractor ESMP, worker’s Code of Conduct, child and forced labour, labour agencies to enforce contract ESHS clauses practices, and budget allocation during project preparation, reporting protocols for proper • Non-reporting of non-compliance, project-related accidents and fatalities by the implementation of ESHS. implementing agencies / contractors • Inclusion of appropriate requirements in civil works contracts and preparation of the required • Inadequate resourcing of public health officers to sensitize communities and workers on instruments of EHS management plans such as Waste Management Plan, Air, and Noise Pollution, health and safety concerns especially in working environments. among others. • Illegal connections and vandalism of electricity infrastructure presents health and safety • Have in place a functional program and worker’s grievance redress mechanism to handle workers risk that may lead to electrocution. conflicts including incorporating health and safety aspects. • Some contractors do not adhere to employment regulations, such as providing written contracts to workers and an opportunity to air their concerns (worker grievances system). 38 ESSA for Zambia NEAT Program • Create awareness and sensitise contractors on legal prohibitions of GBV, and on use of forced • Lack of accountability on disposal of e-waste after project completion. and child labour and its implications. • Climate proofing the program infrastructure by conducting climate change screening on all LEVEL OF RISK – SIGNIFICANT proposed subprojects. • Work with relevant agencies in assessing and mapping out the natural disasters prone areas including areas prone to landslides, floods, lightning, rising waters from the lake, tremors as a strategy to reduce risks related to sensitive ecosystems. Core Principle # 4: Land Acquisition Bank Policy for Program-for-Results Financing: Program E&S systems manage the land acquisition and loss of access to natural resources in a way that avoids or minimizes displacement and assists affected people in improving, or at the minimum restoring, their livelihoods and living standards Bank Directive for Program-for-Results Financing: As relevant, the program to be supported: • Avoids or minimizes land acquisition and related adverse impacts. • Identifies and addresses economic and social impacts caused by land acquisition or loss of access to natural resources, including those affecting people who may lack full legal rights to assets or resources they use or occupy. • Provides compensation sufficient to purchase replacement assets of equivalent value and to meet any necessary transitional expenses, paid prior to taking of land or restricting access. • Provides supplemental livelihood improvement or restoration measures if the taking of land causes loss of income-generating opportunity (e.g., loss of crop production or employment); and, • Restores or replaces public infrastructure and community services that may be adversely affected • (Program activities for which the borrower’s land acquisition and resettlement (LAR) processes have significant gaps with thi s principle, or for which the borrower lack sufficient capacity to manage LAR impacts in a manner consistent with this principles, should not be considered eligible for the PforR Financing regardless of the number of people affected, unless supplemental arrangements are agreed with the Program authorities and endorsed by the CESSO, GSUSS, and/or the Regional Standard Advisor). Applicability: Applicable i. The proposed Program’s activities will require wayleave for the transmission lines, and land for construction of Substations, which will be acquired on a willing buyer willing seller principle if needed. ii. The construction of the lines may result in destruction of crops, vegetation and or/trees; potential loss of livelihood; devaluation of land and restriction in use of land following the acquisition of wayleaves to strengthen distribution network and to connect new households and businesses STRENGTHS WEAKNESSES • Compulsory land acquisition processes are well defined in the Zambian Law. This process has put • The Resettlement guidelines do not define the responsible agency for resettlement in place measures to protect the affected persons, defines affected persons consultation process activities. Although there is a Department of Resettlement under the office of the Vice and avenues for grievance redress. President, there are no clear guidelines on its mandate to oversee resettlement activities • ZESCO and REA have past experience in undertaking wayleave acquisition, including land for government projects. The role of the department is limited to reviewing and giving acquisition and compensation of structures, crops and trees professional opinion on the RAPs, but not approval or overseeing the implementation of • Both REA and ZESCO has a structured wayleave process, which incorporates Community the same. committees which assist in coordination and dissemination of information to the local • Legal frameworks do not explicitly stipulate provisions for livelihoods restoration as communities compensation is focused on land/assets replacement and relocation. There is no clear definition on the rights of those occupying public land and their entitlement, especially on livelihood restoration. • Weak capacities to ensure compliance to required national standards within the implementing agency and entities 39 ESSA for Zambia NEAT Program • Zambia Law does not recognize tenants, squatters or encroachers as being entitled to assistance or any allowances for transportation or disturbances to this particular group • Zambia Law use depreciated replacement cost approach, which does not result in full replacement costs of the lost assets • The Law does not stipulate that resettlement should be avoided wherever possible; on the contrary, as long as a project is for the public interest, involuntary resettlement is considered to be inevitable • Lack of policy and legislation guidance on resettlement and livelihood restoration, including clear guidance on which should be the leading ministry/department on resettlement activities, and roles and mandates of different institutions/agencies • While the Land Act does entitle compensation for business losses, there are no legal provisions requiring the government to restore livelihoods or to provide assistance towards the restoration of such livelihoods. Land users such as tenant farmers are only entitled to compensation for crops (the valuation method is outlined in the 2001 Regulations). • Poor coordination with other agencies to manage social risks related to land acquisition and potential physical and/or economic displacement OPPORTUNITIES THREATS/RISKS • Strengthening of country and Implementing agencies systems to manage and implement the land • Poor systematic implementation of land acquisition procedures as required by the WB acquisition process and associated risks to acceptable standards, PforR principles due to weaknesses of the local policies • ESHSRIM manual to be developed for the implementing agencies, with guidelines on Land • Potential involuntary resettlement without compensation to informal settlers occupying acquisition, economic and physical displacements (including livelihood restoration strategies), to public land illegally support affected persons and avoid adverse impacts on their socio-economic status, assets • Delay of land acquisition of affected persons and/or activities. • Lack of financial resources within the ZESCO and REA for land acquisition and livelihood • Strengthening ZESCO and REA capacities through training on Land acquisition implementation restoration for the PAPs measures, including development of RAPs/ARAPs guidelines that aligns with national regulations and PforR core principles. LEVEL OF RISK – SIGNIFICANT • Establishment of appropriate and transparent consultation mechanisms and documentation in the regions that operate under a communal land system • Enhance collaboration of resettlement activities with other relevant agencies such as the Departments of Resettlement, Department of Community Development, and Gender Division Core Principle 5: Indigenous People and Vulnerable Groups Bank Policy for Program-for-Results Financing: Program E&S systems give due consideration to the cultural appropriateness and/or equitable access to, Program benefits, giving special attention to the rights and interests of Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities, and to the needs or concerns of vulnerable groups. Bank Directive for Program-for-Results Financing: As relevant, the Program to be supported will: • Undertakes free, prior, and informed consultations if Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities are potentially affected (positively or negatively) to determine whether there is broad community support for the program. • Ensures that Indigenous Peoples can participate in devising opportunities to benefit from the exploitation of customary resources or indigenous knowledge, the latter (indigenous knowledge) 40 ESSA for Zambia NEAT Program to include the consent of the Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities. • Gives attention to groups vulnerable to hardship or disadvantage, including as relevant the poor, the disabled, women and children, the elderly, or marginalized ethnic groups. If necessary, special measures are taken to promote equitable access to program benefits. Applicability: NOT Applicable This principle is not applicable to Zambia. Zambia does not recognize existence of indigenous people or historically underserved communities. However, there is potential to discrimination to the poor, the disabled, women and children, and the elderly, on participation of the proposed program due to elite capture, poor consultations among others. It will therefore be important to take special measures to promote equitable access to the PforR Program benefits However the Program interventions are likely to be implemented in areas with por and VMGs presence, thus presenting risks such as: i) inadequate engagement and consultation with the poor and VMGs; ii) limited information disclosure ; iii) exclusion of the poor and VMGs from accessing project benefits; There is also a risk of: i) exclusion of vulnerable households who are unable to wire their premises from accessing electricity; ii) risk of elite capture limiting targeting of last-mile connectivity. Other risks include the expansion of electricity to last-mile consumers which may increase unsafe electricity utilization through, e.g., illegal connections. and disconnection of idle meters from persons unable to pay for the connection and/or service the token, which will mainly exclude the vulnerable households, due to the prevailing socio-economic challenges STRENGTHS WEAKNESSES • The policies, strategies and constitution clearly emphasis the rights of vulnerable individuals and • There is no clear mechanism, guidelines, and procedures for targeting and inclusion of the groups to have access to services. poor and VMGs. The lack of targeted interventions, especially on meaningful public • The implementing agencies have previously worked in areas with the poor and VMGs and this participation prevents the poor and vulnerable groups from engaging in the development experience will assist in ensuring access to program benefits is well managed process and accessing culturally appropriate project benefits and opportunities. • Weak capacities to ensure compliance to required national standards on equitable access within the implementing agency • Weak multisectoral engagements results in lack of synergy among social protection departments (Resettlement department, DCD, NCPWD, department of labour, department of gender) and meaningful collaboration during the development of plans and design of public infrastructure. • Weak capacity to disseminate information to promote social accountability, equity and grievance redress mechanism at the local levels • There is no monitoring and evaluation system to measure progress of equitable access. • Weak capacity to disseminate information to promote social accountability and grievance redress mechanisms at community levels • Lack of awareness among the VMGs, leadership, and professionals on the needs of VMGs • Lack of gender mainstream strategies to facilitate inclusion of gender equity in Programs • Inadequate consultation and engagements with VMG groups during the design of investments resulting in failure to incorporate provisions for universal access to all persons. This includes provision of ramps, disability friendly sanitation facilities, childcare areas in markets • Inadequate resourcing of the process of engagement of the poor and VMGs which in some cases is viewed to be expensive given their remote location 41 ESSA for Zambia NEAT Program OPPORTUNITIES THREAT/RISKS • Capacity building on management and training to encourage participation by the public. • Poor meaningful consultations with the VMGs on the program to access program benefits • Development of robust stakeholder management strategies within the systems as part of the • Introduction of barriers that hinder progress towards achieving the objective of social public consultations Programs to strengthen and systematize projects consultation processes and inclusion and increased equity brought about by elite capture, political interests, grievance redress mechanisms. corruption, cultural, ethnic and gender disparities • Support citizen engagement by promoting community driven infrastructure planning and • Inability to target the inclusion of the vulnerable groups in consultation and delivery of development; requiring that investments are based on citizens needs assessments; taking into program benefits and services to these groups will adversely affect the population considerations VMGs special needs, and mandating active citizen participation in the design and especially the elderly, women, persons with disabilities. implementation of infrastructure investments under the program • The program seeks to be inclusive, but lack of clear and systematic strategies to ensure • Collaborate with Department of Community Development to strengthen citizen engagement and inclusion of VMGs, PWDs etc might not close the existing gaps in the systems. identification of subprojects that will improve economic empowerment for the poor and VMGS • High poverty levels hinder vulnerable persons from accessing improved electricity supply • The opportunity of the program implementers to empower and benefit VMGs in an inclusive manner. • Strengthen requirements and address impacts on sexual exploitation and abuse-sexual harassment (SEA-SH); special measures should be taken to promote confidential reporting of LEVEL OF RISK – LOW SEA/SH related complaints and equitable access to Program benefits. Core Principle # 6: Social Conflict Bank Policy for Program-for-Results Financing: Avoid exacerbating social conflict, especially in fragile states, post-conflict areas, or areas subject to territorial disputes Bank Directive for Program-for-Results Financing: As relevant, the program to be supported: Consider conflict risks, including distributional equity and cultural sensitivities. Applicability: Applicable i. Social conflicts may arise due to influx of workers into project areas that results in Gender-Based Violence (GBV) in particular, Sexual Exploitation and Abuse and Sexual Harassment (SEA-SH), an increase in crime, insecurity and upset community dynamics, competition for scares resources, and culturally inappropriate activities among others. ii. Projects may be located where community conflicts have been reported in the past, due to sharing of resources. iii. Social conflicts may also be exacerbated as a result of implementing intervention in areas with community boundary conflicts. The Program will not undertake projects that cause or exacerbate social conflict in fragile states, post-conflict areas, areas subject to territorial disputes, impact distributional equity or associated cultural sensitivities. STRENGTHS WEAKNESSES • Existence of procedures guiding public participation and consultation from the onset of project • There is poor consultations and coordination of multisectoral agencies to reduce social development will minimize social conflict. conflict brought about by competition of resources between communities • The Government of Zambia also has adopted policies that advance gender equality and youth • Weak mechanisms to identify risks and preventative measures of social conflicts early in inclusion in a supportive enabling environment. project design and subprojects implementation due to factors such as weak GRM uptake • The country systems clearly articulate the minimum requirements for equitable access and channels, inadequate documentation, follow up and resolution of grievances and benefits for the persons with disability, women, and youth in its Programs to promote social complaints inclusion and recognises the vulnerable groups. 42 ESSA for Zambia NEAT Program • The government systems have embedded in the constitution the citizen engagement through • Weak capacities to ensure compliance at the implementing agencies and the law Consultation and Public Participation (CPP) requirements enforcement • There are GRMs within the implementing agencies and other government MDAs with varied • Weak systems to disseminate information and mechanisms to reduce social conflicts at levels of functionality that have been applied to varying degrees of effectiveness in management the community levels of complaints and grievances that can be enhanced for the program. • Political interference, elite capture, and weak procurement processes resulting in conflict • between the local leaders and community on the available opportunities and proposed investments. OPPORTUNITIES RISKS • Development of robust stakeholder management strategies within the systems as part of the • Lack of identification of conflict related risks brought during program design due to limited current Public Participation programs to strengthen projects consultation processes stakeholder engagement and disclosure of Program information. • Strengthen implementing agencies grievance redress mechanisms. The GRM should be sensitive • Potential conflict due to labour influx and other labour related risks (eg GBV/SH/SEA) to all reported concerns including issues related to labour influx and have a referral pathway in between local communities and workers seeking employment opportunities case of GBV cases. • Hiring of contractors with weak E&S capacity to manage social related risks • Integrate contractual obligations in the legal agreements and contracts for contractors to take • Political interference may exacerbates social conflicts responsibilities of the social risks, with appropriate mechanisms for addressing compliance • Inadequate stakeholder engagement and information disclosure leading to potential social • To address other cross cutting social issues arising during project implementation such as conflicts GBV/SEA-SH, there is need to create awareness and mainstream HIV/AIDs, and GBV-SEAH in Program activities. • Incorporate training of social risks related to conflict to implementing agencies safeguards LEVEL OF RISK – LOW specialists as part of the wider capacity building for the program 43 ESSA for Zambia NEAT Program 8 Measures To Strengthen System and Institutional Performance 90. This chapter summarizes measures recommended to strengthen the existing ESHS systems and institutional performance in line with the gaps and risks identified in the ESSA. The proposed measures shall be executed during Program implementation to address identified gaps and risks considering the existing country system and capacity versus the PforR core principles and key planning elements. 8.1 ESSA Findings 91. The ESSA established that: • Zambia has well-developed and robust written systems consistent with the PforR six Core Principles, which, if effectively applied, will enhance the ESHS opportunities under the Program. • Social risks and impacts management functions are fragmented across various institutions (e.g Gender division, Departments of Community development, Resettlement) with limited coordination mechanisms. • There are inadequate targeting and inclusion of VMGs and other disadvantaged and vulnerable groups in participation and accessing Program information, benefits and opportunities. • The existing GRM systems are fragmented, poor functioning, and ineffective in timely resolution of complaints. These systems do not adequately address specific issues (eg GBV/SH/SEA, workers complains, etc) since they are customized to receive, record and handle issues that concern mainstream complains of the communities. • There are local governance structures, that ensure the communities, and the government interact to facilitate access to service delivery and discharge of rights and responsibilities, with the aim to enhance the socio-economic status of these communities and other disadvantaged groups led by the Ministry of Community Development and Social Services. • Land acquisition and resettlement legislations are not clearly defined; and MDAs are responsible for their own land acquisition and resettlement. The Department of Resettlement under the Office of the Vice President is not fully mandated to conduct expropriation on behalf of MDAs. There is need to develop legislation and guidelines to give clear mandates, roles and responsibilities to one organization that will oversee and supervise resettlement on behalf of the government infrastructure projects. • The commitment of the contractors to enforcing ESHS provisions in the contracts is a key challenge due to weak country systems. • Limited monitoring and reporting on ESHS risks and impacts management potentially affecting the identification and implementation of mitigation measures. • There is inadequate collaboration and coordination of activities between the Program teams with lead agencies i.e. OSHI, NCC, ZEMA, DCD, DoR, etc • Inadequate staffing and technical skills at REA, ZESCO, ZEMA, CDC, etc to effectively manage and supervise ESHS risks and impacts for the projects across the country • Lack of inclusion and/or implementation of ESHS clauses the contract and bidding documents. • Inadequate contract management and supervision of ESMP. 8.2 ESSA Recommendations 92. To mitigate identified ESHS risks and impacts, the Program interventions will undergo a screening process including the implementation of an exclusion criterion for certain activities which would result into high risks and significant negative ESHS risks and impacts which are irreversible or unprecedented on the environment and/or affected people. In addition, the ESSA has recommended the following to the Program Action Plan. 44 ESSA for Zambia NEAT Program i. Enhance capacity to manage ESHS risks and impacts: ZESCO and REA will appoint/hire an Environmental, Health and Safety, and Social specialists to coordinate the management of ESHS risks and impacts as a minimum condition to access the investment grants. REA and ZESCO will supplement the inhouse capacity with consultancy services to support the various ESHS aspects, including preparing ESIA/ESMPs/RAPs and carrying out regular indipendent ESHS audits. ii. Engage early into the program planning process key stakeholders involved in ESHS management. Relevant implementing agencies with mandates for ESHS risks and impacts management such as ZEMA, OSHI, Gender Division, DCD, etc, will be integrated early into the program planning process, including participating in the screening of E&S risks and potential impacts of Program interventions, and to ensure that they participate fully in the program, and make an input into the decisions being made throughout the Program cycle. iii. Allocate adequate resources for ESHS aspects in the proposed investment budgets. Evidence from previous IPF projects illustrates that safeguards management is often not adequately supported, especially the ESHS staff assigned to the programs. The Program should ensure that ESHS risks and impacts management strategies, including provision of adequate resources for ESHS staff, and enough budget allocation in the Bill of quantities for safeguards implementation during the investment identification, screening, planning and design processes. The resources shall also include budgetary allocation for preparing ESMPs/ESIAs and RAPs by independent consultants, capacity building of ESHS staff, and monitoring and evaluating the ESHS performance during implementation. iv. Support ZESCO and REA to enhance and/or operationalize the GRM systems. To strengthen stakeholder feedback and grievance redress mechanisms, the ZESCO and REA shall develop Stakeholder feedback and GRM structures at each subproject level. The GRM systems will be culturally appropriate and readily accessible to all stakeholders (including VMGs and other disadvantaged groups) and streamlined to address VMG-specific challenges. The GRM shall also incorporate mechanisms to report GBV cases from the program activities. v. Strengthen implementation and monitoring of ESHS risks and impacts for successful ESHS outcomes. To ensure proper management of ESHS risks, the Program will develop procedures for assessing performance on ESHS management, with performance protocols outlined in the ESHS Manual and the POM. The Annual Performance Assessment (APA) Terms of Reference (ToRs) shall also include ESHS performance assessment procedures to ensure a robust verification process. vi. Strengthening the ESHS risks and impacts management systems to enhance the understanding of the country systems on ESHS and their application. The Program will partner with relevant lead agencies in the ESHS risks and impacts management including OSHI, ZEMA, NCC, DCD, etc to capacity build the capacity of REA, ZESCO and contractors teams. The training will include but not limited to: (i) screening, management and reporting of ESHS risks and impacts; (ii) occupational health and safety; (iii) labour and working conditions; (iv) stakeholder engagement and social inclusion, (v) grievance management; and, (vi) statutory requirements for land acquisition and compensation, (vii) incorporation of ESMP and OSH contractor/supplier clauses in the bidding and contract documents for civil works, including signing of code of conduct (viii) training of contractors and their workers on ESHS. Other topics such as economic and physical displacement, and land acquisition will also be included. ZESCO and REA, in cooperation with ESHS agencies to develop a training program that will include regular training sessions to be provided during program implementation to respond to specific Program needs. 45 ESSA for Zambia NEAT Program vii. Include in contracts and bidding documents provisions for E&S management with attendant budgets. Adequate budget shall be allocated to faciliate ESHS Officers to monitor project sites and give recommendations to the contractors on ESHS risks management. Procurement Officers for all the implementing agencies will be sensitized on ESHS requirements. viii. Review the land acquisition and resettlement guidelines, to guide on land and wayleaves acquisition for the Program, with the help of Department of Resettlement under the office of the Vice President. ix. Include protocols on gender, VMGs, PWDs and other disadvantaged/vulnerable groups, in the public participation guidelines. Mainstream inclusivity of public participation for all projects at ZESCO and REA to ensure meaningful consultation of all segments of the public. 93. To mitigate against ESHS risks and impacts, all sub-projects under the Program will undergo screening, which will include a set criterion for excluding certain categories of sub-projects which would result into high and substantial risks and significant negative E&S impacts which are irreversible or unprecedented on the environment and/or affected people, regardless of the government’s capacity to mitigate the risks. All the sub-projects will be required to follow the guidelines of the Environmental, Social, Health and Safety risks and management (ESHSRIM) Manual which will be developed by the Program, and included in the Program Operations Manual (POM) which forms as part of the Financing Agreement of the Program. In addition, the ESSA has recommended ESHS mitigation and enhancement measures in the Program Action Plan presented in the table below. The PAP shall be legally binding and incorporated into the Financing Agreement of the Program. 46 ESSA for Zambia NEAT Program Table 8-1:: Proposed Environmental, Social, Health and Safety (ESHS) Program Action Plan No. Action Description DLI/IPF Responsibility Timing Expected Output Actions to strengthen Environmental, Health and Social Management Systems (EHSRMS) 1. ZESCO and REA to develop an Environmental, DLI XXX ZESCO / REA Condition of Program • ESHSRM Manual for ZESCO and REA. Social, Health, and Safety Risk and Impacts effectiveness • Document introduced, and adopted by the Management (ESHSRIM) Manual, including organisations as part of improved ESHS guidelines on land acquisition, grievance management practices management, stakeholder engagement and social inclusion, GBV-SEA/SH, management of personal data, OHS among other ESHS aspects • All staff trained on ESHRM manual The ESHSRM manual to be adopted by the DLI xxx REA and ZESCO Within 1 yr of • Operationalization of the manual on organization and trained to company staff on Safeguard program company operations implementation specialists effectiveness Actions to build the capacity for staff of implementing agencies, involved in the Program to enhance environmental and social management risk performance 2. Enhance the ESHS risk management capabilities DLI XXXX ZESCO / REA Before disbursement • Qualified and experienced staff assigned to by staffing the PIU with adequate, qualified, MoE of grants to ZESCO REA and ZESCO experienced, and a full-time environmental and REA • 1 environmentalist, 1 Health and Safety specialist, Health and Safety specialist, and Officer, and 1 social specialist and social specialist at ZESCO and REA Project confirmed annually during APA. Implementation Unit (PIU). Actions to strengthen the implementation and monitoring of the environmental and social risk management 3. • Include a robust ESHS risks and impacts DLI xxx NPCU Before APA • Inclusion of APA verification indictors in the management verification protocol in Annual WB ToRs for APA. Performance Assessment (APA). • Inclusion of a chapter on ESHS in the main • NPCU to conduct an independent annual Annually APA reports. ESHS audit for all infrastructure investments, • Independent Annual ESHS Audit report and reports shared with the WB 4. Include all the applicable ESHS clauses and DLI xxx ZESCO and REA Prior to procurement • Bidding and Contract document templates budgets in the bidding and contract documents of any civil works with ESHS aspects. for civil works. • Inclusion of ESHS in bills of quantities for all subprojects 47 ESSA for Zambia NEAT Program No. Action Description DLI/IPF Responsibility Timing Expected Output • Supervision and monitoring reports and confirmed through APA. 5. Collaborate and partner the lead ESHS agencies, DLI xx NPCT Continuous • Number of trainings and technical including OSHS, ZEMA, NCC, Community ZESCO, REA assistance provided in collaboration with Development, Gender Division etc to train relevant agencies. Confirmed through implementing agencies and contractors on ESHS ZESCO/REA progress reports. risks and impacts management. • Training reports. 6. ZESCO and REA to develop and manage functional ZESCO & REA Within 1 year after • Digitized GRM systems rolled out at ZESCO and digitized GRM systems DLI xxxx program and REA. effectiveness ZESCO & REA • GRM constituted and grievances being Develop and manage functional GRM structures to Before logged, responded, and resolved for sub- manage complains at sub-project levels commencement of project levels sub-project civil • Confirmed annually through APA. works 48 ESSA for Zambia NEAT Program 9 Annexes 9.1 Annex 1: Relevant Policy, Legal, and Regulatory Framework for Environment, Social, Health and Safety Management Table 9-1: Country System (Policies, Regulatory and Legislative Frameworks) as Written and Relevance to the NEAT Program Relevance to the Program and Alignment to Identified Gaps to the ESF Legislation Provisions as Written the ESF Environmental, Health and Safety Management Systems Constitution of The Constitution is the supreme law of the Republic of Zambia and any other law The constitution is well aligned with the ESF None Zambia, and customary practice that is inconsistent with its provisions is considered void. provisions in so far as it upholds the Amended 2016 Section 255 of the Constitution sets out the principles that underpin the requirements for E&S sustainability. The management and development of Zambia’s environment and natural resources. Constitution is in conformity with the 6 Core Section 257(g) commits the Zambian government to establish and implement PforR Principles, as well as the ESSs mechanisms that address climate change. The Constitution is the supreme law of the land. The constitution provides for, inter alia, matters pertaining to land, Program activities shall be carried out to natural resources (wetlands, swamps, rivers and lakes) and the environment. The ensure compliance with the Constitution constitution declares that the state shall promote sustainable development and requirements on all aspects related to E&S public awareness of the need to manage natural resources and to ensure that the management, including environmental and utilization of the natural resources of Zambia shall be managed in such a way as to social impact assessment and management, meet the needs of present and future generations. The government holds in trust Citizen and public participation, access to for the people and is required to protect natural lakes, rivers, wetlands, forest program information, management of labor, reserves, game reserves, national parks and any land to be reserved for ecological inclusion of vulnerable and marginalized or tourism purposes for the common good of all citizens. In this regard, it is in the groups, compensation of affected persons for interest of the Government of Zambia that all socio-economic development land and other assets, undertaking E&S audits, activities protect and preserve the environment from abuse, pollution and and monitoring etc degradation, thus sustainable development. The constitution also provides for a right to a clean environment for every citizen. National Policy The overall vision of the National Policy on Environment is to provide a framework This policy is well aligned with the ESF none on management guide for the management of Zambia’s environment and natural environmental sustainability requirements. Environment resources so as to ensure that they are managed on a sustainable basis and retain relevant to the proposed program in so far as their integrity to support the needs of the current and future generation without it supports E&S sustainability and public compromising either of the two. The guiding principle on health are;- participation. The Program activities will • Urban, district and rural planning and development activities should undergo an environmental, social and safety incorporate human settlement and health concerns; screening and projects likely to have E&S 49 ESSA for Zambia NEAT Program Relevance to the Program and Alignment to Identified Gaps to the ESF Legislation Provisions as Written the ESF • Human settlements should incorporate environmental concerns as impacts will undergo environmental and social well as disaster preparedness; assessments before commencement of works. • Temporary settlements for refugees and other displaced people are The Program will also be subjected to periodic managed using the same guidelines for environmental, pollution environmental, social and safety audits and health concerns as for all other human settlements including throughout its cycle. environmental impact assessment and monitoring; • Development and improvement of human settlements should incorporate the concept of community development with focus upon social services, particularly electricity, water supply, schools, health facilities, recreation facilities, communications, transport and security, in order to discourage random roadside ribbon development which is difficult to maintain and tend to be environmentally unfriendly. Environmental The principal legislation governing environmental management in Zambia is the Implementation of the NEAT Program will The Act is quite on Social aspects, which Management Environmental Management Act (EMA) of 2011. The Act provides for the involve the rehabilitation and construction of should be part of the ESIA Act, 2011. sustainable management of natural resources and protection of the environment, new energy infrastructure that will require and the prevention and control of pollution. Of particular relevance is section 29 that an ESIA/ESMP’s be prepared in of the Act which states that “A person shall not undertake any project that may accordance with the provisions of the ZEMA have an effect on the environment without the written approval of the Agency, and EIA regulations. except in accordance with any conditions imposed in that approval�. Provisions of the Environmental Management Act require that all new projects begin with an Environmental Impact Assessment (EIA) and thereafter, licensing, auditing and compliance inspections follow. The EMA outlines principles governing environmental management and provides for, among other things, Environmental Impact Assessment and regulations relating to environmental assessments. The Act has also spelt out offences relating to failure to prepare and submit an EIA report for projects that require such reports. The projects that require preparation of EIA reports must be approved by ZEMA prior to implementation. Section 29 of the Act specifically states that “a person shall not undertake any project that may have an effect on the environment without the written approval of the Agency, and except in accordance with any conditions imposed in that approval�. Environmental Part 2 Section 4 of the regulations state that a person who intends to emit or The various activities to be undertaken on the none Management discharge a pollutant or contaminant into the environment shall apply to the project are likely to trigger environmental and (Licensing) Agency for an emission license in Form I set out in the First Schedule of the social impacts and this will require that site 50 ESSA for Zambia NEAT Program Relevance to the Program and Alignment to Identified Gaps to the ESF Legislation Provisions as Written the ESF Regulations, Environmental Management Act of 2011. The Agency shall, in accordance with the specific environmental instruments be 2013 guidelines set out in the Second Schedule of the EMA, assess the quality of ambient prepared to eliminate or minimize possible air to protect human health, animal or plant life and the environment. A holder of risks. At national level, In Zambia the an emission license relating to air shall, among other activities: Environmental Impact Assessment (EIA) i. Install air measuring devices and pollution control equipment at the regulation of 1997 gives guidance, schedules plant, undertaking or process that emits air pollutants; in accordance and categories the various project types and with the emission limits as prescribed in the Second Schedule of the the relevant EIA studies to undertaken. It Environmental Management Act. further gives provision on post EIA approval ii. collect such samples and conduct such analysis of the emissions as the management of projects and guidelines for Agency may direct for the monitoring of emission levels developing Environmental Social iii. limits prescribed in the Second Schedule; and Management Plans (ESMP’s). iv. Take reasonable steps to contain the discharge of emissions to prevent, mitigate or remedy their adverse effects on human health, animal or plant life and the environment. Part III, Section 11 of the regulations state that a person shall not conduct open air burning of waste from industrial, commercial operations or domestic or community activities except with the written consent of the Agency. Applicable Regulations under the Environmental Management Act No. 12 of 2011 are described below. a) Environmental Protection and Pollution Control (Environmental Impact Assessment) Regulations, SI No. 28 of 1997. These Regulations provides the main framework under which EIAs are conducted, submitted to ZEMA and considered for either approval or rejection. These regulations are relevant as a guide to the developer as to what is supposed to be done at every stage of the EIA process. The requirements of conducting an EIA are all stipulated under these regulations and the developer shall ensure compliance at every stage. The EIA regulations also give a guideline as to how much review fee will be paid to ZEMA for the purpose of reviewing the EIS for the proposed project and that development shall not be undertaken by a developer without an approval letter from ZEMA. b) Statutory Instrument No. 112 of 2013 – Environmental Management (Licensing) Regulations: These Regulations provide standards and guidelines for mitigating air, wastewater, hazardous waste, pesticides and toxic substances and ozone depleting substances. 51 ESSA for Zambia NEAT Program Relevance to the Program and Alignment to Identified Gaps to the ESF Legislation Provisions as Written the ESF Forests Act, An Act to provide for the establishment and declaration of National Forests, Local The project is unlikely to involve activities that none 2015 Forests, joint forest management areas, botanical reserves, private forests and will involve loss of vegetation. The community forests; provide for the participation of local communities, local construction of transmission lines might authorities, traditional institutions, non-governmental organizations and other require clearance of vegetation, including stakeholders in sustainable forest management; provide for the conservation and forests for wayleave. The program will adhere use of forests and trees for the sustainable management of forests ecosystems and to the provisions of this Act, including biological diversity; establish the Forest Development Fund; provide for the compensation and seeking required approvals implementation of the United Nations Framework Convention on Climate Change, in accordance to this Act. Convention on International Trade in Endangered Species of Wild Flora and Fauna, the Convention on Wetlands of International Importance, especially as Water Fowl . Habitat, the Convention on Biological Diversity, the Convention to Combat Desertification in those Countries experiencing Serious Drought and/or Desertification, particularly in Africa and any other relevant international agreement to which Zambia is a party; repeal and replace the Forests Act, 1999; and provide for matters connected with, or incidental to, the foregoing. Zambia Wildlife The Zambia Wildlife Act was promulgated among other functions to: The construction, activities on the project may none Act No 14, 2015 • Provide for the establishment, control and management of National affect flora and fauna in the area. The project Parks, bird and wildlife sanctuaries and for the conservation and will ensure that all personnel on site undergo enhancement of wildlife eco-systems, biological diversity and objects of orientation on how to handle the siting of wild aesthetic, pre-historic, historical, geological, archaeological and scientific species. interest in National Parks; and • Provide for the sustainable use of wildlife and the effective management of the wildlife habitat in Game Management Areas. Section 4 of the Act stipulates the principles which apply to wildlife conservation and management which include protection of biological diversity; sustainability of the ecosystem and biological diversity; integration; equity and effective participation of local communities and traditional leaders. Occupational An Act to establish the Occupational Health and Safety Institute and provide for its During the implementation of project none Health and functions; provide for the establishment of health and safety committees at activities, personnel involved in construction Safety Act workplaces and for the health, safety and welfare of persons at work; provide for of infrastructure and their operation will be (OSHA), 2010 the duties of manufacturers, importers and suppliers of articles, devices, items and required to adhere to best practices with substances for use at work; provide for the protection of persons, other than regards to Occupational Health and Safety. persons at work, against risks to health or safety arising from, or in connection with, Procedures and manuals and regular onsite the activities of persons at work. training will be undertaken to ensure 52 ESSA for Zambia NEAT Program Relevance to the Program and Alignment to Identified Gaps to the ESF Legislation Provisions as Written the ESF personnel working on site are conversant with Section 11 of Part III requires that an employer of ten or more persons at any the information contained. The project will workplace establishes a health and safety committee. ensure that high risk areas are clearly marked with restricted access and the provision of the According to section 13 the functions of the health and safety committee are: relevant Personal Protective Equipment (PPE) • promote cooperation between the employer and the employees in will be mandatory. achieving and maintaining healthy and safe working conditions; • share information about occupational health, safety and welfare with employees; • investigate and resolve any matter that may be a risk to the health and safety of employees at a workplace; • review the measures taken on the health and safety of employees at a workplace; and • formulate, review and disseminate to the employees the standards, rules and procedures relating to health and safety to be carried out at the workplace. Section 16 of Part IV provides the duties of employers at workplaces in respect of health and safety at workplaces. These duties include: • ensure, so far as is reasonably practicable, the health, safety and welfare of the employees of the employer at a workplace; and • place and maintain an employee in an occupational environment adapted to the employee’s physical, physiological and psychological ability. The duties of an employee at a workplace, according to section 17, with regard to health and safety are to: • take reasonable care for the employee’s own health and safety and that of other persons who may be affected by the employee’s acts or omissions at the workplace; • not operate any machine or engage in a process which is unsafe or is an imminent risk to the employee’s own health or safety and that of others; and • cooperate with the employer or any other person in relation to any duty imposed on the employer or that other person, so far as is necessary to enable that duty or requirement to be performed or complied with. 53 ESSA for Zambia NEAT Program Relevance to the Program and Alignment to Identified Gaps to the ESF Legislation Provisions as Written the ESF The employee is also expected to immediately inform the employer, the committee or health and safety representative if there are reasonable grounds to believe that any item, device, article, plant or substance, condition or aspect of the workplace is, or may be, dangerous to the employees’ occupational health or safety at or near the workplace. Public Health An Act to provide for the prevention and suppression of diseases and generally to During project implementation, all activities None Act, 1995 regulate all matters of public health in Zambia. will incorporate measures that prevent and minimize the spread of diseases in order to protect the health and safety of the general public. National An Act to provide for the establishment of the National Council for Construction The construction of transmission lines will None Council for and to define its functions; to provide for the promotion and development of the require that all designs and materials used are Construction construction industry in Zambia; to provide for the registration of contractors; to within acceptable standards of the National Act No. 13, provide for the affiliation to the Council of professional bodies or organisations Construction Council. Furthermore, all the 2003 whose members are engaged in activities contractors that will be engaged on the related to the construction industry; to provide for the regulation of the project have to be registered with the council. construction industry; to provide for the establishment of the Construction School; to provide for the training of persons engaged in construction or in activities related to construction; and to provide for matters connected with or incidental to the fore-going National The National Climate Change Policy also provides the country with home grown The proposed Program will align to this policy None Climate initiatives targeted at minimising the impact of climate change on national by enhancing climate change resilience and development. The Ministry of Lands and Natural Resources will spear head the sustainable through supporting efficiency Change implementation of climate change programmes. The policy will support and improvement and promote scaling up of Policy, 2017 facilitate a coordinated response to climate change by re-aligning its climate alternative energy sources, energy efficiency sensitive sectors of the economy and society. The policy provides stakeholders with and conservation. The Program will also a clearer framework on how to tackle climate change in Zambia. enhance resilience of the distribution network to greater climate vulnerabilities. 54 ESSA for Zambia NEAT Program Legislation Provisions as Written Relevance to the Program and Alignment to the ESF Identified Gaps to the ESF Social Management Systems The National Sets out the Government objectives, principles and measures for dealing with Under the proposed program, some people may be The Resettlment policy does not Resettlement Policy resettlement as a strategy for rural development and as a response to internal displaced. Certain provisions of the policy will be applied define the role of the DoR and the (NRP): population displacements. In addition, it provides a mechanism for dealing with both if there will be any physical or economic displacement . implementing agencies. The DoR voluntary and involuntary resettlements. The policy focuses on employment has not been given the mandate creation, access to public social services, increased food security, security of land to supervise and monitor any tenure, stimulating economic growth in rural areas and compensation and resettlement that might occur as resettlement assistance for internally displaced persons. The Department of a result of the program, which Resettlement (DoR) in the Vice President’s Office is charged with implementation of pose a potential risk to project the NRP. However, the policy is not legally binding. affected persons not getting the right compensation and / or resettlement. The policy requires a review to clearly define the roles and responsibilities of the DoR and the implementing agencies. To address this gap, the WB guidelines on land acquisition and resettlement will be used for this program as defined in ESS 5 Workers Act to make provision for the establishment and administration of a Fund for the Compensation Act compensation of Workers disabled by accidents to, or diseases contracted by, such (1994) Workers in the course of their employment, and for the payment of compensation to dependants of Workers who die as a result of such accidents or diseases; for the payment of contributions to such Fund by employers; for the grant of pensions and allowances to certain dependants of Workers who, being in receipt of pensions for such disablement, die from causes not connected with such accidents or diseases; for the appointment and powers of a Workers' Compensation Commissioner and the establishment and powers of a Workers' Compensation Board and an Appeal Tribunal; and for matters incidental to and connected with the foregoing Gender Equity and An Act to establish the Gender Equity and Equality Commission and provide for its This policy aligns well with the Bank’s Directive and There is need to streamline the Equality Act, 2015 functions and powers; provide for the taking of measures and making of strategic Guidance Note on GBV prevention with emphasis on implementation of this policy at decisions in all spheres of life in order to ensure gender equity, equality and SEA/SH. all levels of government and non- integration of both sexes in society; promote gender equity and equality as a cross governmental actors as it aligns cutting issue in all spheres of life and stimulate productive resources and The program will comply with this Act by promoting well with international best development opportunities for both sexes; prohibit harassment, victimization and gender equality in its activities, including the practices on GBV issues 55 ESSA for Zambia NEAT Program Legislation Provisions as Written Relevance to the Program and Alignment to the ESF Identified Gaps to the ESF harmful social, cultural and religious practices; provide for public awareness and Implementing agencies and their contractors and training on issues of gender equity and equality; provide for the elimination of all suppliers required to demonstrate commitment to forms of discrimination against women, empower women and achieve gender equity gender equality in their operational policies and in and equality by giving effect to the Convention on the Elimination of all Forms of employment opportunities. The program will ensure Discrimination against Women, the Protocol to the African Charter on Human and there People’s Rights on the Rights of Women in Africa and the SADC Protocol on Gender and Development; and provide for matters connected with, or incidental to, the foregoing. Human Rights An Act to provide for the functions and powers of the Human Rights Commission; to The proposed program will enhance access to clean None Commission Act, 1996 provide for its composition and to provide for matters connected with or incidental electricty to communities and enhance increased to the foregoing. opportunities for vulnerable groups in the society. This will give VMGs (especially women and girls more opportunities, contribute to economic growth and also help their household lead a dignified life. Lands Act, 1964 Controls the alienation of land and the conversion of land from customary tenure to In the event of land acquisition triggered by project None Cap 184 statutory. The Act empowers the President of the Republic to compulsorily acquire activities, land alienation and procedures for land property. The principles of compensation are pivoted on the basis that the value of conversion as provided for in the Act will take property for the purpose of compensation shall be the value of the amount which precedence. The Act further states the need to consult the property might be expected to realize if sold on the open market by a willing persons whose interests may be affected by land seller at the time of the publication of notice to yield possession of the property. acquisition prior to any transaction. Project will undertake consultations with affected parties in meeting Land Tenure: Two land tenure systems exit; statutory and customary. Statutory with the provisions of the Act. tenure involves administration of state land by the Commissioner of Lands through local authorities. Planning and sub- division of land parcels for development is guided by the provision of the Urban and Regional Planning Act of 2015. Customary tenure is applicable in rural areas and does not allow for exclusive individual rights as land is held in trust on behalf of the community by the traditional authorities. Access to land is at the discretion of traditional authorities and due to existing cultural tendencies, this usually results in exclusion of vulnerable groups which include women, youths and persons living with disabilities. There are no legally defined physical boundaries for customary land making it prone to encroachments that contribute to land disputes. Lands Acquisition Act Section three of the Lands Acquisition Act empowers the President of the Republic Enforcement of this Act on the program will only apply in Under the Zambian law, only Chapter 189 to compulsorily acquire property. Sections 5 to 7 of the Act provides for the issuing instances where land will be acquired for public use. people and entities with title of notices to show the intention to acquire, notice to yield up property and to take Notices of intent to compulsorily acquire land will be deeds are entitled to up possession. Section 10 of the Act provides for compensation as consisting of such issued together with stated dates for taking up compensation e.g. those with moneys as may be agreed from moneys appropriated for the purpose by Parliament. possession of the said properties. Compensation in registered third party rights or 56 ESSA for Zambia NEAT Program Legislation Provisions as Written Relevance to the Program and Alignment to the ESF Identified Gaps to the ESF Furthermore, this section provides that where the property to be compulsorily monetary form or in exchange for property of similar those who have legally obtained acquired is land, the President, with the consent of the person entitled to value or better will be payable to affected individuals as the right to register but have not compensation shall in lieu or in addition to any compensation payable under the agreed with the State. yet completed registration. section, grant other land not exceeding the value of the land acquired. Lands Conversion of This Act provides for the alienation, transfer, disposition, and change of use of land. Enforcement of this Act on the program will only apply in None Title Act The Act also provides for compulsory acquisition of land by the President wherever instances where land will be acquired for public use. he is of the opinion that it is desirable or expedient to do so in the public’s interest. Arbitration Act No. 19 This Act provides for arbitration in cases where the land owner/occupier does not The Act will apply in cases where project affected None of 2000 agree with the amount of compensation being offered. Under section 12 (2) of the persons will not agree with the PIU on compensation Act, the parties to arbitration are free to determine the procedure for appointing the amounts offered for the loss incurred. Failure to resolve arbitrator or arbitrators. Section 12 (3) (b) states that if the parties are unable to disputes at project level, aggrieved persons will be free agree on the arbitration, another arbitrator shall be appointed, upon request of a to seek legal redress through the appointment of an party, by an arbitral institution independent arbitrator Land Survey Act The Land Survey Act provides for the surveying of lands and properties before they The Act will be applicable in cases where land alienation None are numbered, allocated and registered. will occur. Land acquired for the project will be surveyed to clearly mark boundaries. The Valuation Act provides guidance for the land valuation practices in Zambia by the land valuator, In case the project impacts the existing sources of None Surveyors Act Cap 207 who is supposed to be registered by the Valuation Registration Board under the people’s sources of livelihood or results in the restriction provisions of this Act. of access to resources and or impacts their various assets, compensation would be based on the value of their properties in using this Act. Local Government The Act provides for the establishment of Councils in districts, the functions of local Project implementation and supervision will require the None Act, No. 2 (2019 authorities and the local government system of which some of the functions relate support of local authorities’ by seeking all approvals to pollution control and protection of the environment in general. required to be sourced from the local authorities such as planning permission. National Heritage An Act to repeal and replace the Natural and Historical Monuments and Relics Act; The project will incorporate a chance finds procedure in None Conservation to establish the National Heritage Conservation Commission; to define the functions the ESIAs to guide contractors and stakeholders on Commission Act, 1989 and powers of the Commission; to provide for the conservation of ancient, cultural reporting channels and processes should the site and natural heritage, relics and other objects of aesthetic, historical, prehistorical, artefacts of heritage significance. The National archaeological or scientific interest; to provide for the regulation of archaeological Heritage and Conservation Commission NHCC) will be excavations and export of relics; and to provide for matters connected with or notified should a chance find be cited and offer guidance incidental to the foregoing. on how such sensitive findings should be handled. Protection of The Act provides a transparent legal framework for the protection of, access to, and The program will adhere to this Act by observing and None Traditional use of, by guaranteeing equitable sharing of benefits and effective participation of protecting natural heritage along the project area Knowledge, Genetic holders. The Act: boundaries Resources and 57 ESSA for Zambia NEAT Program Legislation Provisions as Written Relevance to the Program and Alignment to the ESF Identified Gaps to the ESF Expressions of • recognises the spiritual, cultural, social, political, and economic value of the Folklore Act of 2016 holders of traditional knowledge • promotes the preservation, wider application and development of traditional knowledge, genetic resources, and expressions of folklores • recognises, protects, and supports the inalienable rights of traditional communities, individuals and groups over their traditional knowledge, genetic resources, and expressions of folklore • confers rights on traditional communities, individuals, and groups • promotes the conservation and sustainable utilization of the country’s biodiversity resources. • promotes fair and equitable distribution of the benefits derived from the exploitation of traditional knowledge, genetic resources, and expressions of folklore • promotes the use of traditional knowledge, genetic resources, and expressions of folklore for the benefit of traditional communities, the country and mankind in general • ensures that exploitation of traditional knowledge, genetic resources and expressions of folklore take place with the prior informed consent of a traditional community, individual or group • prevents the granting of patents based on traditional knowledge, genetic resources, and expressions of folklore without the prior informed consent of a traditional community, individual or group. Non-Governmental An Act to provide for the co-ordination and registration of non-governmental Non-Governmental Organizations (NGO’s) are some of None Organisations Act, organisations; establish the Non-Governmental Organizations’ Registration Board the major stakeholders on the project, their involvement 2009 and the Zambia Congress of Non- Governmental Organizations; constitute the on the project will range from; information Council of Non-Governmental Organizations; enhance the transparency, dissemination, educational activities and advocacy This accountability and performance of non- governmental organisations; and provide for will require that NGO’s are registered, regulated and matters connected with or incidental to the foregoing adhere to ethical practices set by the Non-Government Organizations Registration Board and The Zambia Congress of Non-Governmental Organizations. Public Procurement An Act to continue the existence of the Zambia National Tender Board and re-name The project will involve the procurement of works, goods None Act, 2008 it as the Zambia Public Procurement Authority; revise the law relating to and services and this will require that the process follow procurement So as to ensure transparency and accountability in public procurement; the Zambia Public Procurement Authority (ZPPA) regulate and control practices relating to public procurement in order to promote guidelines to ensure fairness, transparency, integrity, the integrity of, fairness and public confidence in, the procurement process; repeal accountability and promote public and stakeholder and replace the Zambia National Tender Board Act, 1982; and provide for matters confidence. The process will be further complimented by connected with or incidental to the foregoing. World Bank procurement policies. 58 ESSA for Zambia NEAT Program Legislation Provisions as Written Relevance to the Program and Alignment to the ESF Identified Gaps to the ESF Roads and Road An Act to make provision for the care, maintenance and construction of roads in During implementation of project activities, there is None Traffic Act, 1995 Zambia, for the control of motor traffic, for the licensing of drivers and motor likely to be disruption to roads and traffic in surrounding vehicles, for the compulsory third party insurance of motor vehicles, for the licensing areas. This will be during construction activities requiring and control of public service vehicles and public services, and for other miscellaneous earthworks in close proximity to roads and delivery of provisions relating to roads and motor traffic. materials. Constructors will be required to adhere to set speed limits, undertake works and bulk deliveries away from off pick time and work within the project footprint to minimize intrusion into surrounding areas. Urban and Regional An Act to provide for development, planning and administration principles, Project implementation is likely to involve construction None Planning Act, 2015 standards and requirements for urban and regional planning processes and systems; activities. These activities are likely to alter the landscape provide for a framework for administering and managing urban and regional of the current layout of target areas. The project in planning; provide for a planning framework, guidelines, systems and processes for collaboration with the local authorities in which these urban and regional planning; establish a democratic, accountable, transparent, areas fall will ensure the designs and plans adhere with participatory and inclusive process for urban and regional planning that allows for the Urban and Regional Planning of the areas so as to be involvement of communities, private sector, interest groups and other stakeholders in harmony with the councils’ expansion master plan. in the planning, implementation and operation of human settlement development; ensure functional efficiency and socio-economic integration by providing for integration of activities, uses and facilities. The Act also establish procedures for integrated urban and regional planning in a devolved system of governance so as to ensure multi-sector cooperation, coordination and involvement of different levels of ministries, provincial administration, local authorities, traditional leaders and other stakeholders in urban and regional planning; ensure sustainable urban and rural development by promoting environmental, social and economic sustainability in development initiatives and controls at all levels of urban and regional planning; ensure uniformity of law and policy with respect to urban and regional planning; repeal the Town and Country Planning Act, 1962, and the Housing (Statutory and Improvement Areas) Act, 1975; and provide for matters connected with, or incidental to, the foregoing. The Town & Country The Act provides for Ministerial powers to appoint Planning Authorities to prepare Planning permission for the construction of planned None Planning Act Chapter structural, regional, integrated development, and layout plans to guide physical energy projects will be submitted for approval, to ensure 283 urban and rural development in Zambia.. proposed infrastructure is integrated in the development plans Anti-Gender-Based This Act offers a comprehensive framework for protection, but also a means of This Act aligns well with the Bank’s Directive and There is need to streamline Violence survival for victims and survivors of gender-based violence, and prosecution of Guidance Note on GBV prevention with emphasis on the implementation of this Act Act, 2011. perpetrators. The Act seeks to address all forms of gender-based violence. It goes on SEA/SH. The Program will require to the client and their at all levels of government and further to list the types of abuses arising from cultural practices to include forced consultants to prepare SEA/SH prevention and response non- governmental actors as it virginity testing, forced marriages, “sexual cleansing� and child marriages. It also management plans for all activities that may involve the aligns well with international influx of labour into the project areas. The program will best practices on GBV issues 59 ESSA for Zambia NEAT Program Legislation Provisions as Written Relevance to the Program and Alignment to the ESF Identified Gaps to the ESF defines such abuse to include “abuse perpetrated on a person by virtue of the also support the enhancement of the client’s internal person’s age, physical or mental incapability, disability or illness.� GBV (especially SEA/SH) policies and strategies and support their entrenchment at all levels including within the implementing agencies, its contractors and its suppliers, in alignment with this Act. A communications strategy will be developed which will include GBV mitigation measures and the Grievance Redress Mechanism (GRM). The Sexual Offences This legislation prohibits sexual offences which include rape, grievous sexual act, The NEAT Program will require to establish measures None Act, No. 12 of 2009 marital rape, incest, sexual touching or interference, sexual grooming of child, sexual that prohibit and take action against sexual offences intercourse with person under sixteen, inducing or encouraging violation of child listed in the Act for implementing agencies staff, under the age of sixteen, custody or abduction of child under sixteen, indecent contractors and suppliers assault. Consent of a child is not deemed as defense in indecent assault. Other sexual offences are violation of person suffering from mental disorder or physical disability, unlawful detention with intent to have sexual intercourse, living on earnings of prostitution. Because construction workers are usually away from their families for a period of time, the likelihood of workers to be involved in sexual offences is high. The Act is clear that anyone involved in such an act liable for punishment as prescribed section 33 of the Act. Disaster Management An Act to establish and provide for the maintenance and operation of a system for Construction activities under the NEAT Program, will None Act, 2010 the anticipation, preparedness, prevention, coordination, mitigation and need to consider the various natural disaster and the management of disaster situations and the organization of relief and recovery from climate change phenomenon that has seen most parts of disasters; establish the National Disaster Management and Mitigation Unit and the country experience droughts or excessive rains. In provide for its powers and functions; provide for the declaration of disasters; order to safeguard infrastructure and the safety of the establish the National Disaster Relief Trust Fund; provide for the responsibilities and workers and communities, ZESCO and REA management involvement of the members of the public in disaster management; and provide for will need to engage. the Disaster Management and matters connected with, or incidental to, the foregoing. Mitigation Unit (DMMU) an institution established and mandated to anticipate, prepare and manage disasters should they occur. Employment Act No. An Act to provide legislation relating to the employment of persons; to make During project implementation and associated sub None 3 of 2019 provision for the engagement of persons on contracts of service and to provide for projects, various individuals will be engaged to perform the form of and enforcement of contracts of service; to make provision for the multiple tasks. This will require that all contractors on appointment of officers of the Labour Department and for the conferring of powers the project adhere to the provision of the employment on such officers and upon medical officers; to make provision for the protection of act and the national labour laws. This will be achieved by wages of employees; to provide for the control of employment agencies; and to creating a conducive work environment, treating provide for matters incidental to and consequential upon the foregoing. workers in a humane manner and remuneration is favorable. 60 ESSA for Zambia NEAT Program Legislation Provisions as Written Relevance to the Program and Alignment to the ESF Identified Gaps to the ESF The Act further provides for the protection of wages of employees and the regulation of employment agencies. Some of the safety, health and welfare related issues addressed in this Act include: medical examination of a worker to determine his/her fitness to undertake the work which he/she has been contracted to do; provision of an adequate supply of wholesome drinking water; continuous payment of wages, for up to 26 days, to a worker who becomes temporarily incapacitated in consequence of sickness or accident not occasioned by his own default Legislation Relevance to the Program and Alignment to Identified Gaps to the Provisions as Written the ESF ESF ENERGY SPECIFIC ACTS/LEGISLATIONS Electricity Act No.15 An Act to regulate the generation, transmission, distribution and supply of electricity so as to enhance The Act is aligned to the ESF in so far as it The land acquisition of of 2019 and the security and reliability of the supply of electricity; provide for the sale and purchase of electricity requires prior consent of a landowner to wayleave is not well Electricity within and outside the Republic; facilitate the achievement of the efficient, effective, sustainable enable energy sector actors to enter into and harmonized across the Amendment Act, development and operation of electricity infrastructure; provide the roles and responsibilities of various use private land for energy infrastructure different agencies, 2003 participants in the electricity sector; facilitate adequate levels of investment in the electricity sector; purposes. It provides for compensation for where responsibilities of provide for a multi-year tariff framework; promote transparency in the identification and allocation of land, trees and crops in line with ESS5. The the acquisition lies with risks, costs and revenues within and between participants in the electricity sector; ensure the protection Environmental, social and safety management the implementing and safety of consumers of electricity and the public; repeal and replace the Electricity Act, 1995; and practices shall be adopted to facilitate the agency. The provide for matters connected with, or incidental to, the foregoing. preservation of natural resources, protect the Department of health and safety of workers and Resettlement at the communities. As applicable, activities shall Office of the Vice commence after subjection to NEMA President does not have approved EIA’s. the mandate to supervise and monitor any resettlement that might occur as a result of the program, which pose a potential risk to project affected persons not getting the right 61 ESSA for Zambia NEAT Program Legislation Relevance to the Program and Alignment to Identified Gaps to the Provisions as Written the ESF ESF compensation and / or resettlement Energy Regulation An Act to provide for the licensing of enterprises in the energy sector; continue the existence of the A license from the Energy Regulation Board of None Act, 2019 Energy Regulation Board and re-define its functions; re-constitute and revise the functions of the Board; Zambia (ERB) and ZEMA will be required prior repeal and replace the Energy Regulation Act, 1995; and provide for matters connected with, or to commencement of the operation phase of incidental to, the foregoing. the project Sect 4 (i) gives mandate of the Energy Regulation Board, in collaboration with the Zambia Environmental Management Agency, formulate measures to minimise the environmental impact of activities carried out in the energy sector; which includes the production and supply of energy and the production, transportation, conversion, storage and use of fuels and enforces such measures by the attachment of the appropriate conditions to licenses held by the undertaking. National Energy The NEP 2019 is aimed at guiding the energy sector in the development of the electricity generation, The policy aligns with the ESF in so far as it none Policy, 2019 transmission and distribution capacity. Further, it will enhance cost - effectiveness and efficiency in the provides for E&S sustainability including supply of petroleum products. It will also facilitate the development and deployment of renewable and defining measures to streamline gender, alternative energy. Furthermore, the Policy will promote security of energy supply through climate change, and health and safety in the diversification of energy sources at cost reflective pricing which will promote new investment in the energy sector sector, consequently scaling up access to energy services in rural and urban areas. The NEP 2019 also considers climate change mitigation and adaptation while advancing sustainable development of the sector. In addition, the Policy mainstreams gender and disability aspects aimed at increasing access to clean and efficient energy thereby reducing poverty among vulnerable groups especially women and children 62 ESSA for Zambia NEAT Program 9.2 Annex 2: List of Stakeholders Consulted during the ESSA Process 63 ESSA for Zambia NEAT Program 64 ESSA for Zambia NEAT Program 65 ESSA for Zambia NEAT Program 66 ESSA for Zambia NEAT Program 67 ESSA for Zambia NEAT Program 68 ESSA for Zambia NEAT Program 9.3 Annex 2 (a): List of Stakeholders who Provided Feedback on the Draft ESSA Report 69