The World Bank GH Energy Sector Recovery PforR (P173258) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 02/11/2021 | Report No: ESRSC01861 Feb 11, 2021 Page 1 of 9 The World Bank GH Energy Sector Recovery PforR (P173258) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Ghana AFRICA WEST P173258 Project Name GH Energy Sector Recovery PforR Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Energy & Extractives Program-for-Results 8/3/2021 9/27/2021 Financing Borrower(s) Implementing Agency(ies) Ministry of Finance Senior's Minister Office Proposed Development Objective The Program’s Development Objectives (PDO) are to improve the financial performance of the energy sector and to increase access to clean cooking solutions for households. Public Disclosure Financing (in USD Million) Amount IPF Component 60.00 Total Project Cost 370.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The IPF component will finance priority investments needed to improve the electricity losses of the main distribution utility, ECG (mainly metering systems and upgrades of existing distribution network infrastructure). The IPF component will also finance technical assistance to support capacity building of key stakeholders, key sectoral studies, communication strategies and operational costs. D. Environmental and Social Overview Feb 11, 2021 Page 2 of 9 The World Bank GH Energy Sector Recovery PforR (P173258) D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] Overall the program will be financed through a Program-for-Results Financing (PforR) with some components to be financed under Investment Project Financing (IPF). The scope of the proposed PforR program and IPF component of the program is a subset of this broader Energy Sector Recovery Program (ESRP) of the Government of Ghana. This Environmental and Social Review Summary (ESRS), covers components of the program which will be financed under IPF. The proposed project IPF activities will be implemented at the national level and will provide support to the sector institutions such as Ministry of Energy (MoEn), Energy Commission (EC), Public Utilities Regulatory Commission (PURC). However, some specific activities will be implemented at the regional and sub-regional levels within urban settings. The IPF component under the PforR will increase efficiency of investments and support the implementation of the ESRP Program. Key investments are required to reduce electricity losses and improve performance of the distribution utilities. Specifically, the IPF will support the supply and installation of equipment: smart meters, metering systems and software, IT hardware and eventually by upgrading of existing distribution network Low Voltage infrastructure (substations, transformers and feeders). For these investments an IPF instrument is the most suitable for cost effective financing since significant cost savings can be achieved procuring the equipment and infrastructure through an IPF procurement process instead of a PforR. These investments, especially the metering systems, which are standardized and procured in bulk, are cheaper when procured under WB procurement procedures. Indeed, WB procurement procedures and direct financing encourages more competition and enhances good corporate Public Disclosure governance as opposed to relying on procurement by the distribution utilities. This results in drastic reduction in prices of goods and services compared to purchases made directly by utilities with their own funds and following their own procedures. To ensure these savings are realized and the impact is maximized, an IPF instrument is the most suitable for cost-effective financing of this equipment because WB procurement guidelines will apply and will be included under the operation, maximizing the impact of the ESRP and the Program. The IPF component will also finance the TA to support capacity building of key stakeholders, key sectoral studies and communication strategies. The TA will be designed as an IPF because the WB procurement processes would ensure a more efficient delivery of this component and quality service and products. Specific areas of support will include: (i) capacity building and training to sectoral institutions such as Ministry of Energy, Ministry of Local Government and Rural Development, Energy Commission, National Petroleum Authority, PURC and utilities; (ii) strategic analysis and policy advice of the gas to power chain; (iii) technical assistance to enable investments and innovation related to clean cooking, through policy development, behavior change communication, sector coordination, research and development, institutional strengthening and business support services; and (iv) operational support to the PIU. The Specifically, the TA will be provided to support efficient implementation of the project and will include activities supporting: (i) energy sector stakeholders’ capacity building, (ii) development of the regulatory framework (including EHS&S aspects) and planning capacity, (iii) improvements to local clean cooking stoves manufacturing capacity, (iv) promote LPG market demand, and (v) data and intelligence gathering in the clean cooking space. D. 2. Borrower’s Institutional Capacity For the overall operation of the program, a Program Implementation Unit (PIU) will hold the fiduciary and environmental & social risk management responsibilities of the Project. The PIU will be created and staffed with experts from each constituting body of the ESRP Working Group, which includes the beneficiary institutions including the Ministry of Energy (MoEn), Energy Commission (EC) and the Public Utilities Regulatory Commission (PURC). At the Feb 11, 2021 Page 3 of 9 The World Bank GH Energy Sector Recovery PforR (P173258) PIU, Environmental and Social focal person will be assigned to lead and coordinate the E&S risks and impacts of the program. The Ministry of Energy has implemented a number of World Bank Group financed projects with successful outcomes, including the Ghana Energy Development and Access Project (P074191) and the Ghana Energy Sector Transformation Initiative Project (P163984). The PIU will be responsible for managing the IPF components by facilitating procurement and coordinating activities of consultants on strategic analysis, capacity building and policy advice. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Environmental Risk Rating Moderate The environmental risk classification for the proposed IPF activities is moderate, since the proposed IPF will mainly finance the procurement, supply and installation of equipment: smart meters, metering systems and software, IT hardware and, eventually, upgrade of existing distribution network Low Voltage infrastructure (substations, transformers and feeders) and the TA will support capacity building of key stakeholders, key sectoral studies, communication strategies and operational costs. The IPF/TA will not support activities that will generate adverse environmental risks or impacts. Potential environmental risks associated with the IPF/TA will include theft, road accident, electronic waste, occupational health Public Disclosure and safety, etc. The impacts associated with these risks will be localized and will not be significant and there is low probability of serious adverse effects to human health and/or the environment. The impacts can easily be prevented and/or mitigated in a predictable manner. Social Risk Rating Moderate The social risk classification for the proposed IPF activities is moderate, since the proposed IPF will mainly finance the procurement, supply and installation of equipment: smart meters, metering systems and software, IT hardware and, eventually, upgrade of existing distribution network Low Voltage infrastructure (substations, transformers and feeders) and the TA will support capacity building of key stakeholders, key sectoral studies, communication strategies and operational costs. The IPF/TA will not support activities that will generate adverse social impacts on human population. There is no possibility of any displacement of the people as upgrading the existing distribution will be done at the existing locations only and no additional land is required. However, labor will be hired to carry out the replacement and installation of equipment. Potential social risks associated with the IPF/TA may include ESS2 related risks if consultants and other agencies are hired under the TA to perform capacity building activities, labor related risks, health and safety of workers hired for upgradation work, GBV, etc. Other social risks are that of exclusion of women and persons with disabilities in technical trainings therefore widening the gender gaps in the sector; and exposure to COVID-19 if no vaccine is found for the pandemic. The impacts associated with these risks will be localized and will not be significant and can be prevented and/or mitigated in a predictable manner. Feb 11, 2021 Page 4 of 9 The World Bank GH Energy Sector Recovery PforR (P173258) TA activities may present low risk to Sexual Exploitation and Abuse (SEA) and Sexual Harassment (SH) but present an opportunity to ensure gender and disability inclusion by supporting initiatives that seeks to close gender gaps in technical capacity in the sector as well as disability inclusion in technical capacity building activities. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: The proposed activities under the IPF and TA are expected to have minimal environmental and social risks and impacts. The IPF will not support construction of new infrastructure or other actions having risks or direct, indirect, cumulative or induced adverse impacts on the environment and human population. Potential environmental risks associated with the IPF/TA will include theft, road accident, electronic waste, occupational health and safety, etc. The main social risks are associated with potential increase in tariff is its impact on the poorer households and they may have to devote an increasingly larger share of their household budget to electricity bills. Equally, low-income households may devote more income to purchase of gas or abandon its usage if additional retail fees to be added to the LPG price leads to significant increased cost of LPG. There are also risks of exclusion of women, persons with disabilities (PWD) and other vulnerable groups in the technical trainings under the program therefore widening the Public Disclosure gender gaps in the sector; and exposure to COVID-19 if no vaccine is found for the pandemic. In addition labor risks under ESS2 may be posed if consultants and other agencies are hired under the TA to perform capacity building activities and labor would be hired for upgrading the distribution network. To institute a general risk identification framework for assessing and managing the potential E&S risks, the Borrower will prepare an Environmental and Social Management Framework (ESMF) that will outline appropriate mitigation measures which will be implemented to address potential risks. The Borrower will prepare and implement a Stakeholder Engagement Plan (SEP). The SEP will outline the characteristics and interests of the relevant stakeholder groups and individuals including measures to remove barriers to ensure vulnerable individuals or groups participation in the project, provides information on timing, places, methods of engagement, implementation arrangements and budget to support its implementation. The project will encourage adherence to WHO and government protocols to minimize exposure to COVID-19 under the TA activities. To address potential complaints, the program will prepare and implement a robust Grievance Mechanism or reinforce existing mechanisms, for beneficiary stakeholders to make complain. The team will continually assess the functionality of the mechanism and its compliance with the World Bank standards and make sure it is consolidated and effective to process grievances related to the program. To ensure maximum participation of women and PWD in technical trainings, consultants would be required to define in their approach of work, strategies to systematically identify and ensure participation of women from the sector in such trainings. Feb 11, 2021 Page 5 of 9 The World Bank GH Energy Sector Recovery PforR (P173258) Areas where “Use of Borrower Framework” is being considered: The project will not rely on the borrower’s framework and the implementation of the IPF section of this operation will be guided by the relevant and applicable Environmental and Social Standards pursuant to the objects of the ESF. ESS10 Stakeholder Engagement and Information Disclosure Key stakeholders of the IPF/TA component includes government employees: Ministry of Energy (MoEn), Energy Commission (EC), Public Utilities Regulatory Commission (PURC), Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo). Other stakeholders include NGOs, CSOs, consumers, potential contractors and the media. The Borrower will prepare a Stakeholder Engagement Plan (SEP) which will be consistent with the requirements of ESS10 to address the concerns of these groups and other groups. The objective of the SEP is to establish a systematic approach for stakeholder engagement, maintain a constructive relationship with them, consider stakeholders’ views, promote and provide means for effective and inclusive engagement with stakeholders and beneficiaries throughout the project life-cycle, and ensure that appropriate project information is disclosed to stakeholders in a timely, understandable, culturally accessible and appropriate manner. The TA will also set up a project-specific Grievance Redress and Feedback Mechanism for people to report concerns or complaints. B.2. Specific Risks and Impacts Public Disclosure A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions The TA activities will be implemented by staff from the Ministry of Energy (MoEn), Energy Commission (EC), Public Utilities Regulatory Commission (PURC), Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo). Other consultants might also be hired by the government to provide support to the PIU as needed. Government staff working in connection with the project full-time or part-time will remain subject to the terms and conditions of their existing public sector employment or agreement, unless there has been an effective legal transfer of their employment or engagement in the project. Labor will also be hired for the upgradation work of the distribution networks. Government will reflect appropriate occupational health and safety and other measures in contracts of other Consultants/workers to be hired as per ESS2 The Borrower will prepare appropriate occupational health and safety (OHS) measures including Labor Management Procedure (LMP) as part of the ESMF in line with national laws that govern labor and working conditions related to the IPF component under the program (administrative-related tasks not requiring civil work) and will be applied to all types of project workers. ESS3 Resource Efficiency and Pollution Prevention and Management This standard is relevant since the IPF activities will finance procurement and transportation of equipment: smart meters, metering systems and software, IT hardware and, eventually, upgrade of existing distribution network Low Voltage infrastructure (substations, transformers and feeders), with potential exposure to electronic waste and solid Feb 11, 2021 Page 6 of 9 The World Bank GH Energy Sector Recovery PforR (P173258) waste streams during the transportation of equipment as a potential risks and/or impacts. The Borrower will prepare waste management plan as part of the ESMF. The plan will set out procedures, such as sorting, collection, reusing, recycling, transporting, containment, final disposal etc. Resource efficiency is also relevant to the project since the proposed activities may also involve installation of air conditioners and electrical equipment for the PIU. Energy-efficient equipment will be procured and installed. ESS4 Community Health and Safety This standard is relevant at this stage. The E&S screening has identified traffic management and road safety as a potential community health and safety risk and/or impacts relevant to ESS4 as the IPF/TA activities will finance transportation of equipment. The ESMF will addressed a range of other health and safety risks and measures (such as noise and air pollution), GBV and SEA/SH, etc. The project will develop and implement throughout the project life measures to manage traffic and road safety risks, which have be set out in the ESMF which has been prepared. Exposure to COVID-19 at workplace will be of a potential concern if no vaccine is found for the pandemic by the time of program implementation. The project will, therefore, promote adherence to WHO and government protocols that minimize exposure to COVID-19 at workplaces. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement This standard is not relevant at this stage. The outcome of E&S screening did not identify any potential risks and/or Public Disclosure impacts relevant to ESS5 as the IPF will not finance activities that involve land acquisition. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources This standard is not relevant at this stage. The outcome of E&S screening did not identify any potential risks and/or impacts relevant to ESS6 as the TA activities will not finance activities that will impact biodiversity. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities This standard is not relevant since there are no known indigenous people in Ghana. ESS8 Cultural Heritage This standard is not relevant at this stage. The outcome of E&S screening did not identify any potential risks and/or impacts relevant to ESS8 as the TA activities will not finance activities that will impact cultural heritage. ESS9 Financial Intermediaries This standard is not relevant. TA activities will not involve financial intermediaries. Feb 11, 2021 Page 7 of 9 The World Bank GH Energy Sector Recovery PforR (P173258) C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE A. Is a common approach being considered? No Financing Partners Not Applicable B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: 1. Prepare Environmental and Social Commitment Plan (ESCP) for the IPF/TA, with measures for addressing the environmental, social and labor risks identified; 2. Prepare ESMF; 3. Prepare Waste Management Plan as part of the ESMF; Public Disclosure 4. Prepare LMP as part of the ESMF; 5. Prepare SEP. Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): 1. Implement an ESMF; 2. Implement a Waste Management Plan as part of the ESMF; 3. Establish a functioning E&S risk management system including deployment of qualified staff to manage E&S risk on the TA activities; 4. Implement a LMP as part of the ESMF; 5. Implement a SEP; 6. Establish a Grievance Redress Mechanism; 7. Establish measures to ensure gender and disability inclusion in the IPF activities. C. Timing Tentative target date for preparing the Appraisal Stage ESRS 31-May-2021 IV. CONTACT POINTS World Bank Contact: David Vilar Ferrenbach Title: Senior Energy Specialist Feb 11, 2021 Page 8 of 9 The World Bank GH Energy Sector Recovery PforR (P173258) Telephone No: 5241+4116 / 233-030-22144116 Email: dvilar@worldbank.org Contact: Sunil W. Mathrani Title: Lead Energy Specialist Telephone No: 5331+3424 / 225- -2240-0424 Email: smathrani@worldbank.org Borrower/Client/Recipient Borrower: Ministry of Finance Implementing Agency(ies) Implementing Agency: Senior's Minister Office V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Public Disclosure Task Team Leader(s): David Vilar Ferrenbach, Sunil W. Mathrani Practice Manager (ENR/Social) Senait Nigiru Assefa Recommended on 11-Feb-2021 at 08:09:34 GMT-05:00 Feb 11, 2021 Page 9 of 9