INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA1709 Public Disclosure Copy Date ISDS Prepared/Updated: 07-Dec-2012 I. BASIC INFORMATION 1. Basic Project Data Country: Turkey Project ID: P131921 Project Name: EU/IPA Energy Sector Technical Assistance Project (P131921) Task Team Kari J. Nyman Leader: Estimated 12-Dec-2012 Estimated 15-May-2013 Appraisal Date: Board Date: Managing Unit: ECSEG Lending Technical Assistance Loan Instrument: Sector: General energy sector (55%), Oil and gas (24%), Other Renewable Energy (21%) Theme: Managing for development results (40%), State-owned enterprise restructuring and privatization (20%), Micro, Small and Medium Enterp rise support (20%), Other Private Sector Development (20%) Financing (In USD Million) Financing Source Amount Borrower 0.55 Public Disclosure Copy Free-standing TFs for ECA SD Sector Unit 14.32 Total 14.87 Environmental B - Partial Assessment Category: Is this a No Repeater project? 2. Project Objectives The development objective is the enhancement of the Turkish energy sector in line with the EU Energy priorities and strategies in energy efficiency, renewable energy, and the natural gas market. 3. Project Description The proposed TA program supports and accelerates the implementation of the Government's strategy to reform Turkey's energy sector in line with the EU energy strategies and priorities. The following components are proposed in the IPA 2012 program: (1) the Ministry of Energy and Natural Resources (MENR) - (a) institutional review and capacity building of MENR; and (b) review of Turkey's alignment with the EU energy acquis; (2) Renewable Energy - (a) review of current Page 1 of 5 situation, barriers and road map; (b) renewable energy grid integration to distribution and transmission systems; and (c) the provision of renewable energy business development services to small and medium-sized industries; (3) Natural Gas - (a) support for the unbundling of the national Public Disclosure Copy gas supply and transmission company BOTAS; and (b) implementation plan for a gas trading platform and effective gas market opening; (4) Energy Efficiency - (a) market development in the industrial and building sectors including the provision of energy efficiency business development services to small and medium-sized industries; and (b) capacity building for commercial energy efficiency lending market; and (5) Visibility and Public Awareness. These components cover several key areas of Turkey's energy sector: gas, renewable energy and energy efficiency. The program is expected to be expanded into the electricity market area and substantially scaled up in the energy efficiency and renewable energy areas in IPA 2013. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The proposed TA project would be carried out in Turkey - in the offices of MENR and other participating agencies and in the premises of participating SMEs (locations to be determined). 5. Environmental and Social Safeguards Specialists Zeynep Durnev Darendeliler (ECSSO) Esra Arikan (ECSEN) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes The environmental category of the project is B, BP 4.01 in view of the fact that under the renewable energy and energy efficiency components of the project, renewable energy and energy efficiency projects for SMEs and buildings will be prepared as part of the business development services. A stand alone EMP/ESMF is not required for this Public Disclosure Copy TA project. The only environmental safeguards document will be the TORs of the consultants (both for energy efficiency and renewable energy consultancy tasks). They are being drafted and are expected to be available by mid- January-2013. The MENR will disclose them on the ministry's website and they will be submitted to the InfoShop by end-January 2013. Natural Habitats OP/BP 4.04 No TA project. Forests OP/BP 4.36 No TA project. Pest Management OP 4.09 No TA project. Physical Cultural Resources OP/ No TA project. BP 4.11 Indigenous Peoples OP/BP 4.10 No TA project. Page 2 of 5 Involuntary Resettlement OP/BP No TA project. 4.12 Public Disclosure Copy Safety of Dams OP/BP 4.37 No TA project. Projects on International No TA project. Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No TA project. 7.60 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: This is a TA project and will not finance any investment which will have adverse impacts on the environment. The environmental category of the project is assigned as B, in view of the fact that under the renewable energy and energy efficiency component of the project, renewable energy and energy efficiency projects for SMEs and buildings will be prepared as part of the business development services, and the consultancy works for developing these project concepts could be financed by this TA. The terms of reference (TOR) of consultants that will provide these services will refer to OP 4.01 requirements. The consultants are expected to guide the SME in their project reports/needs assessment, etc. regarding the national and WB requirements (if the SME intends to borrow from IBRD-financed credit lines to Turkish banks in order to finance the developed project) of environmental impact assessment and public consultation procedures. These terms of reference are under preparation, and when ready drafts will be disclosed on MENR's web site and submitted to the InfoShop. Draft TORs are expected to be available by mid-January-2013. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities Public Disclosure Copy in the project area: Under the renewable energy and energy efficiency components of the technical assistance project, renewable energy and energy efficiency projects for SMEs and buildings will be prepared as part of the business development services. These will be small projects for SMEs and in case of renewable energy, technologies other than hydro and wind. When implemented, such projects though small nevertheless may have environmental impacts. Specification of the Environmental Assessment documents for these projects will depend on the finance source selected and SME will decide on the party who will prepare this environmental documentation. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. 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 terms of reference of consultants that will prepare renewable energy and energy efficiency project proposals will refer to OP 4.01 requirements. The consultants are expected to guide the SME in their project reports/needs assessment, etc. regarding the national and WB requirements (if the SMe intends to borrow from IBRD-financed credit lines to Turkish banks in order to finance the developed project) of environmental impact assessment and public consultation procedures. Renewable energy and energy efficiency project proposals resulting from the project may be Page 3 of 5 submitted for appraisal and financing by participating Turkish banks. These banks may include HalkBank, VakifBank and Ziraat Bankasi (the three banks which are currently preparing an energy efficiency project for World Bank financing) and other banks supported by other external Public Disclosure Copy financiers including the IFC, the EBRD, the EIB, the AFD and the KfW. Capacity assessments of the Bank-supported banks have been carried out under the SME project. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. This will be reviewed for each renewable energy and energy efficiency project by the SME's consultant who is assigned for the preparation of the environmental assessment document (EA/ EMP, when necessary) and covered in the project reports. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other Was the document disclosed prior to appraisal? Date of receipt by the Bank 15-Jan-2013 Date of submission to InfoShop 18-Jan-2013 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Technical Assistance Project For a TA project which will finance the preparation of a specific safeguards instrument, please indicate type of document disclosed, if any. If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. Public Disclosure Copy If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Page 4 of 5 Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Public Disclosure Copy Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader: Kari J. Nyman Approved By Regional Safeguards Name: Agnes I. Kiss (RSA) Date: 07-Dec-2012 Coordinator: Sector Manager: Name: Ranjit J. Lamech (SM) Date: 07-Dec-2012 Public Disclosure Copy Page 5 of 5