The World Bank RESTRUCTURING ISDS Ghana Energy Sector Transformation Initiative Project (P163984) Integrated Safeguards Data Sheet Restructuring Stage Restructuring Stage | Date ISDS Prepared/Updated: 12-Jan-2021| Report No: ISDSR31277 Regional Vice President: Ousmane Diagana Country Director: Pierre Frank Laporte Acting Regional Director: Ashish Khanna Practice Manager: Ashish Khanna Task Team Leaders: Rhonda Lenai Jordan Antoine, David Vilar Ferrenbach The World Bank RESTRUCTURING ISDS Ghana Energy Sector Transformation Initiative Project (P163984) . I. BASIC INFORMATION 1. BASIC PROJECT DATA Project ID Project Name P163984 Ghana Energy Sector Transformation Initiative Project Task Team Leader(s) Country Rhonda Lenai Jordan Antoine, David Vilar Ferrenbach Ghana Approval Date Environmental Category 13-Jul-2018 Partial Assessment (B) Managing Unit IAWE4 PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 20.00 Total Financing 20.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 20.00 IDA Credit 20.00 2. PROJECT INFORMATION PROG_INF O Current Program Development Objective The Project development objectives is to: strengthen the capacity of the energy sector to implement sector reforms, and improve energy sector planning and coordination in Ghana . The World Bank RESTRUCTURING ISDS Ghana Energy Sector Transformation Initiative Project (P163984) PROJECT DESCRIPTION BACKGROUND 1. The financing for the Ghana Energy Sector Transformation Initiative Project (GESTIP, P163984) was approved by the World Bank Board of Executive Director on July 13, 2018, from the resources of the International Development Association (IDA) in the amount of Special Drawing Rights (SDR) 14.2 million (US$20.0 million equivalent). The Project Development Objectives (PDO) are to strengthen the capacity of the energy sector to implement sector reforms and improve energy sector planning and coordination in Ghana. 2. Ghana has among the highest electricity access rates in the region, standing at roughly 84% nationally, as well as significant excess generation capacity. In recent years, however, low collection rates, high losses, non-cost-recovery tariffs, chronic inflation, and currency depreciation without automatic tariff adjustments have caused the energy sector to become a fiscal burden costing the Government about 1-2 percent of GDP annually. GESTIP was designed to help implement the Energy Sector Recovery Program (ESRP), adopted by the Cabinet of Ghana on May 9, 2019, as Government of Ghana’s roadmap to restore and sustain governance and the financial viability of the sector to attract competitive private sector investments. 3. GESTIP is being implemented by Implemented by Ghana’s Ministry of Energy and its outcomes will contribute to achieving the Government’s sector reform objectives, including: (a) stabilizing sector finances; (b) establishing transparent investment planning and regulatory frameworks; (c) increasing electricity access in remote areas; (d) effectively utilizing domestic gas for power generation to reduce the cost of electricity; and (e) optimizing planning and operation of the sector to maximize domestic resources—natural gas, hydro and renewable energy—to improve the financial and environmental sustainability of the sector. COMPONENTS 4. GESTIP has five components: (a) Management of energy sector financial flows; (b) Sector planning and coordination; (c) Energy access; (d) Natural gas; and (e) Project management. In addition to advisory and analytical work, the components also include training and capacity building to the staff of the energy sector entities and some software and small equipment for business operations and to support efforts along the five components. 5. GESTIP was designed with the flexibility to respond to evolving Government priorities. It is therefore expected that activities aligned with the GESTIP PDO are added over time based on demand from Beneficiary agencies in the sector. 6. Following the restructuring, GESTIP will support the following activities, added and amended as indicated below. 7. Component 1: Management of power sector financial flows. The activities under this component will assist in addressing the financial viability of the energy sector, by improving revenue management at sector level, improving revenue collection at the utilities’ level, and strengthening the utilities’ operational and financial management functions. (a) Cash Waterfall Mechanism (i) Development & implementation of Cash Waterfall mechanism – modified; (ii) Annual Audit and Review of Legacy Debt – added; (iii) Technical Audit of Power Plants – added; (iv) Streetlighting Assessment – added. (b) Electronic Billing and Collection The World Bank RESTRUCTURING ISDS Ghana Energy Sector Transformation Initiative Project (P163984) (i) Definition of NEDCo E-billing Action Plan – modified; (ii) Implementation of ECG Advance Metering Infrastructure (AMI) – added; (iii) VRA Restructuring – cancelled. (c) Improvement of Operational Functions (New) (i) Upgrade Of GRIDCO’s SCADA (software and hardware) Network Management System – added; (ii) Completion of supply and installation of Outage management system (OMS) – added; (iii) Completion of Supply and Installation of Enterprise Resource Planning (ERP) System – added; (iv) Completion of Consultancy for supervision of Enterprise Resource Planning System – added; (v) Preparation of Performance Improvement Plan (PIP) Guidelines – added. 8. Component 2: Sector planning and coordination. To enhance planning and coordination across the energy sector, this component will assist the Government to design effective institutional arrangements with clear mandates for the regulatory institutions, and to improve the planning capacity of the power and gas sector actors. (a) Electricity Sector Assessment and Support for Implementing Recommendations – cancelled; (b) Gas Sector Assessment and Support for Implementing Recommendations – cancelled; (c) Review of Ghana Petroleum Products Price Build-Up – added; (d) Development of Cylinder Recirculation Model (CRM) Monitoring and Evaluation Framework and CRM Baseline – added; (e) Development of Liquified Petroleum Gas Behavioural Change and Public Awareness Strategy – added; (f) Regional Power Trading – cancelled; (g) Grid Resilience and Reinforcement study for GRIDCo – cancelled; (h) Estimation of Value of Lost Load (VoLL) for electricity Supply in Ghana – added; (i) Development of Control of Major Accident Hazards Regulations – added. 9. Component 3: Electricity access. This component will support the development of a strategy for electrification and introduction of clean cooking in remote areas, to support the Government’s commitment for universal electrification by 2030 committed under the SE4ALL initiative including both grid extension and off-grid solutions as appropriate for different regions of the country. (a) MOEN Update of GIS Database for Ghana's Last-Mile Electrification; (b) Feasibility and Investment Planning studies for Ghana's Last-Mile Electrification; (c) Consumer and Market Assessment Study and Development of National Clean Cooking Strategy for Ghana; (d) Preparation of Operation Manual for the National LPG Promotion Programme- added; (e) Needs Assessment for Upgrade and ISO Accreditation of Stove Testing Laboratory of KNUST Technology Consultancy Centre (TCC) – added; (f) Update of Distribution Design Specification Guidelines and Construction Standards Studies; (g) NEDCO Development of Power Distribution System Master Plan; (h) NEDCO eGIS for Techiman and Parts of Sunyani Operational Areas; (i) Feasibility study for NEDCo fibre optic broadband infrastructure deployment- added; (j) NEDCo Network Protection and Coordination study- added; (k) Short and Long term Energy and Demand Forecast Study for NEDCo- added. 10. Component 4: Natural gas. The fourth component will develop guidance to promote natural gas. (a) Development of Strategy for Balancing Natural Gas Demand and Supply; (b) Commercial and Legal Review of the Gas Sales Agreement (GSA) between N-Gas and VRA; (c) Support for Capacity Building and Vocational Training-cancelled; (d) Development Natural Gas Distribution Franchise for Tema- added; The World Bank RESTRUCTURING ISDS Ghana Energy Sector Transformation Initiative Project (P163984) 11. Component 5: Project management & ESRP Implementation Support. This component will cover support to the PIU to manage the activities described in Components 1 through 4, and includes support for its operations and the installation of a prefabricated office to ensure adequate office space for the PIU. This component also includes training and capacity building to the staff of energy sector entities and the procurement of software and small equipment for business operations and to support efforts along the five components of the project. 12. It is worth noting that the restructured GESTIP, per request from the GoG, will provide support to four activities that commenced under the recently closed Ghana Energy Development and Access Project (GEDAP, P074191); while contracts were amended to close with the close of the project, the originally intended scope of activities was not complete before project closing and there remain funding requirements of US$2.62 million. These activities, added under Component 1 above, include Completion of supply and installation of Outage management system (OMS), Completion of Supply and Installation of Enterprise Resource Planning (ERP) System, Completion of Consultancy for supervision of Enterprise Resource Planning System, and Implementation of ECG Advance Metering Infrastructure (AMI). . 3. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN) All works will be limited to existing government GRIDCo and ECG facilities within urban areas; hence the environmental footprint is expected to be minimal with low risks to biodiversity and human health. No land acquisition or involuntary resettlement is expected. 4. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM Nneka Okereke, Social Specialist Justice Odoiquaye Odoi, Environmental Specialist Adams Kwaw, Social Specialist Sarah Antwi Boasiako, Social Specialist SAFEGUARD_TABLE 5. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation The restructuring necessitates environmental and social (E&S) due diligence since the new activities brings about some E&S risks. The project will develop an Environmental and Social Management Environmental Assessment (OP) (BP 4.01) Yes Plan(s) to accommodate new activities as well as update the GRM. The ESMP would include a site waste management plan and an electronic waste management plan when relevant. Performance Standards for Private Sector No Activities OP/BP 4.03 The World Bank RESTRUCTURING ISDS Ghana Energy Sector Transformation Initiative Project (P163984) Natural Habitats (OP) (BP 4.04) No Forests (OP) (BP 4.36) No Pest Management (OP 4.09) No Physical Cultural Resources (OP) (BP 4.11) No Indigenous Peoples (OP) (BP 4.10) No Involuntary Resettlement (OP) (BP 4.12) No Safety of Dams (OP) (BP 4.37) No Projects on International Waterways (OP) No (BP 7.50) Projects in Disputed Areas (OP) (BP 7.60) No KEY_POLICY_TABLE II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. SUMMARY OF KEY SAFEGUARD ISSUES 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. The project is being reclassified as Category B since the restructuring will include new activities with potential environmental and social risks and impacts. The activities including: (i) upgrade of Supervisory Control and Data Acquisition (SCADA), (ii) the supply and installation of the Outage Management System (OMS), (iii) the supply and installation of Enterprise Resource Planning system (ERP), and (iv) the installation of a prefabricated office. The addition of the new activities brings about new environmental and social risks and potential impacts that need to be considered. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. The potential environmental and social risks and impacts issues include: (i) Building safety. Key risks involve health and safety issues linked to improper techniques during construction (e.g. use of hazardous materials, inadequate life and fire safety, weak structural integrity etc.). This can affect both quality of personal health and safety of construction workers. (ii) Construction-related risks such as air and noise pollution, Occupational Health and Safety issues, GBV issues, Sexual Exploitation and Abuse (SEA), Workers and community grievances, community health and safety issues. (iii) Solid and liquid waste generation: The installation, operations and maintenance of a prefabricated office will generate solid and liquid waste with potential to contaminate the environment. (iv) Electronic waste generation: The installation, operations and maintenance of the SCADA and operation of the OMS and ERP may result in the generation of electronic wastes. However, the new activities will not involve land acquisition, relocation, and displacement. The World Bank RESTRUCTURING ISDS Ghana Energy Sector Transformation Initiative Project (P163984) 3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. The overall scale of the impacts is expected to be low to moderate and mostly temporary, predictable and can be mitigated reliably through adequate mitigatory measures. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The PIU already has an Environmental and Social specialist. This PIU will be maintained and the specialist will focus supporting E&S management including Gender, social inclusion and Citizen Engagement activities proposed for the project. An ESMP will be prepared during project implementation and will be approved by the PM 5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. There are no identified PAPs as covered by the scope of the safeguards policies. Project beneficiaries are key government agencies in the energy sector who will benefit from the various studies and capacity building efforts of the project. Notwithstanding, the project intends to discuss the findings of the various studies with relevant stakeholders, including CSOs, NGOs, the general public through the media etc. DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS ENV_TABLE Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission for disclosure 26-Aug-2022 26-Aug-2022 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors “In country� Disclosure Country Date of Disclosure Ghana 26-Aug-2022 Comments COMPLIANCE_TABLE The World Bank RESTRUCTURING ISDS Ghana Energy Sector Transformation Initiative Project (P163984) C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL EA_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review No and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes PDI_TABLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for No disclosure? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups No and local NGOs? ALL_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the monitoring Yes of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower Yes and the same been adequately reflected in the project legal documents? III. APPROVALS Rhonda Lenai Jordan Antoine Task Team Leader(s) David Vilar Ferrenbach The World Bank RESTRUCTURING ISDS Ghana Energy Sector Transformation Initiative Project (P163984) Approved By Practice Manager/Manager Ashish Khanna 09-May-2022 .