Public Disclosure Authorized Socialist Republic of Vietnam Ministry of Industry and Trade Public Disclosure Authorized ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK For Public Disclosure Authorized VIETNAM SCALING UP ENERGY EFFICIENCY PROJECT Public Disclosure Authorized September 2019 1 Table of Content LIST OF TABLES ................................................................................................................................4 LIST OF FIGURES ..............................................................................................................................4 ACRONYMS ......................................................................................................................................5 I. INTRODUCTION ................................................................................................................................................ 1 II. PROJECT DESCRIPTION ................................................................................................................................. 3 II.1. Project Objectives and Components ........................................................................................3 II.2. Project target area ....................................................................................................................4 II.3. Anticipated subproject types .....................................................................................................4 III. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ............................................................................... 7 III.1. Applicable National law and legal regulations ..........................................................................7 III.2. World Bank Safeguard Policies Triggered ...............................................................................8 IV. POTENTIAL PROJECT IMPACTS AND MITIGATION MEASURES ............................................................... 27 IV.1. Potential Impacts ....................................................................................................................27 IV.2. Mitigation measures................................................................................................................27 V. PROCEDURES FOR SCREENING, REVIEW, CLEARANCE AND IMPLEMENTATION OF SUBPROJECT SAFEGUARD INSTRUMENTS ........................................................................................................................ 39 V.1. Safeguard Screening ..............................................................................................................39 V.2. Eligibility Screening.................................................................................................................39 V.3. Impact screening to determine sub-project category and safeguard instrument ...................40 V.4. Development of Subproject Safeguard Documents ...............................................................43 V.5. Review, Approval, and Clearance of Subproject Safeguards Instruments ............................46 V.5.1. Review and approval of safeguards instruments ............................................................................... 46 V.5.2. Public consultation and disclosure of safeguard instruments ............................................................. 46 V.5.3. Disclosure of EA documents .............................................................................................................. 47 V.6. Implementation, Supervision, Monitoring, and Reporting .......................................................47 V.6.1. Implementation .................................................................................................................................. 47 V.6.2. Supervision and Monitoring ............................................................................................................... 47 V.6.3. Reporting ........................................................................................................................................... 48 V.7. Safeguard requirements for activities under project component 2 .........................................49 VI. IMPLEMENTATION ARRANGEMENT ............................................................................................................ 50 VI.1. Responsibility for ESMF Implementation................................................................................50 VI.2. Incorporation of ESMF into Project Operational Manual ........................................................53 VII. CAPACITY BUILDING, TRAINING AND TECHNICAL ASSISSTANCE........................................................... 53 VII.1. Institutional Capacity Assessment ..........................................................................................53 VII.2. Training ...................................................................................................................................54 VII.3. Technical Assistance ..............................................................................................................54 VIII. ESMF IMPLEMENTATION BUDGET ......................................................................................................... 55 IX. GRIEVANCE AND REDRESS MECHANISM .................................................................................................. 55 X. ESMF CONSULTATION AND DISCLOSURE ................................................................................................. 57 2 XI. ANNEXES ........................................................................................................................................................ 59 Annex 1. Environmental and social safeguards checklist .............................................................................. 60 Annex 2. Subproject Environmental and Social Impact Screening Checklist ................................................ 63 Annex 3. Guidance for preparation of an Environmental Management Plan ................................................. 73 Annex 5. PCB management procedure ......................................................................................................... 89 Annex 6. Public Consultation Meeting Minutes ............................................................................................. 91 Annex 7. Environmental, Health and Safety Guidelines; and Industry Sector Guidelines of the World Bank Group ................................................................................................................................................. 96 3 LIST OF TABLES Table 1. World Bank Safeguards Policies triggered by the VSUEE Project ............................. 9 Table 2. EA activities and required outputs in an ODA project ............................................... 14 Table 3. Environmental Assessment Process of the GoV and the World Bank ....................... 15 Table 4. Gap analyses of environmental safeguard policies between the GoV and the World Bank .......................................................................................................................................... 21 Table 5. The typical environmental and social impacts and mitigation measures of EE subprojects ................................................................................................................................ 29 Table 6. Summary of environmental management procedures for subprojects under VSUEE44 Table 7. Stakeholders’ responsibilities for ESMF implementation .......................................... 51 Table 8. Proposed programs on capacity building on environmental management ................. 54 Table 9. Estimated budget and financial source for ESMF implementation ............................ 55 LIST OF FIGURES Figure 1. Potential EE Measures ................................................................................................ 5 Figure 2. EA process in a World Bank project cycle ............................................................... 13 Figure 3. Environmental screening procedure .......................... Error! Bookmark not defined. Figure 4. Reporting System ...................................................................................................... 49 Figure 5. Implementation organization structure of VSUEE ................................................... 51 Figure 6. Basic Complaints and Grievances Mechanism of the Project .................................. 57 Figure 7. PCB Management Procedure .................................................................................... 90 4 ACRONYMS AU Administrative Unit CEP Commitment on Environmental Protection CPC Commune People Committee CPEE Clean Production and Energy Efficiency CSC Construction supervision consultant DONRE Department of Natural Resources and Environment DPC District People Committee EA Environmental Assessment ECOP Environmental Codes of Practice EE Energy Efficiency EIA Environmental Impact Assessment EFO Externally Financed Output EHS Environment, Health and Safety guidelines EMDP Ethnic Minority Development Plan EMP Environment Management Plan EPP Environment Protection Plan ESCOs Energy Service Companies FS Feasibility Study GCF Green Climate Fund GDP Gross Domestic Product GHG Green House Gas GIIP Good International Industry Practice HQ Headquarter HCFC Hydro chlorofluorocarbons compounds IBRD The International Bank for Reconstruction and Development IDA The International Development Association ICR Implementation Completion Report IEs Industrial Enterprises IFC The International Finance Corporation KTOE Kilotonne of Oil Equivalent MOF Ministry of Finance MOIT Ministry of Industry and Trade MONRE Ministry of Natural Resources and Environment MOU Memorandum of Understanding NDC Nationally Determined Contribution ODA Official Development Assistance OM Operation Manual OP/BP Operational Policy/Bank Procedure PB Participating Bank PCB Polychlorinated biphenyl PFIs Participating Financial Institutions PIE Program Implementing Entity PIU Project Implementation Unit PMB Project Management Board PMU Project Management Unit 5 PPC Provincial People Committee PV Photovoltaic QCVN National Technical Regulation RE Renewable Energy RP Resettlement Plan RPF Resettlement Policy Frameworks RSF Risk Sharing Facility SEA Strategy environmental Assessment TA Technical Assistance UNIDO The United Nations Industrial Development Organization VNEEP Vietnam National Energy Efficiency Program VSUEE Vietnam Scaling Up Energy Efficiency Project VEEIE Vietnam Energy Efficiency for Industrial Enterprises WB World Bank 6 I. INTRODUCTION Vietnam is one of the most energy-intensive countries in East Asia, its energy intensity increasing about 10 percent in period 2001-2010, in which electricity demand increasing annually about 13 percent in period 2001-2010 and about 11 percent during 2011-2015. According to the Vietnam Energy Statistics 2015, total primary energy supply of Vietnam was 70,588 KTOE. In Vietnam’s overall energy intensity, industry is the most energy- intensive economic sector, accounting for 47.3 percent of the final energy use. Rapid increase in the industrialization and less effective energy use are main factors for Vietnam’s energy intensity to be high in comparison with other countries. Vietnam has limited domestic energy resources, most of the larger hydropower projects developed, primary energy resource and fossil exhausted, renewable energy such as small hydropower, wind, solar and another types limited by regulatory and financial framework, cost of investment and technology. In next decades, Vietnam energy demand is still increase, the dependence on imported energy resource affecting energy security, impacted by international and regional energy cost. The cost of energy to Vietnam’s consumers currently amounts to around US$14-15 billion per year. In the power sector alone, the financing needs are about US$7.9-10.8 billion annually to meet future demand for generation and network investments. In the Power Development Plan for the period 2011 – 2020 with vision to 2030 revised and passed by the Prime Minister of Vietnam on March 18, 2016 (PDP7 revised), energy demand for national economic-social development is around 7.0 percent per year in the value of GDP. In this scenario, the increase of national electricity demand in the next period is significant reduction in comparison with the previous period, but still high compared to other countries, especially 10.6 percent per year (in period 2016 – 2020), 8.5 percent per year (in period 2021 – 2025), and 7.5 percent per year (in period 2026 – 2030). Current demand projections show a dramatic increase from 45,000 MW to 60,000 MW in 2020 to 129,500 MW in 2030. It is a big energy challenge to provide capital for expansion, improvement of transmission grids, distribution, and investment, development of new electricity as well as sufficient provision of primary power for electricity plants. According to the Bank’s Low Carbon Study 2011, Vietnam could save up to 11 GW of new generation capacity by 2030 if comprehensive demand-side EE investments are carried out, especially energy intensive industrial enterprises such steel, cement to be able to reduce 30 percent of greenhouse gas from those activities. Vietnam has also pledged, in its Nationally Determined Contribution (NDC) submitted to the United Nations Framework Convention on Climate Change (UNFCCC), to reduce 8 percent of the GHG emission during 2021 - 2030 compared to the business-as-usual scenario and to further aim at 25 percent reduction with support from the international community. In Vietnam’s NDC report, GHG emission in energy sector is 85 percent of total GHG emission of nation by 2030. Therefore, EE plays important role for national energy saving if organized and implemented sufficiently, to help sustainable economic development and environmental protection, to conduct Vietnam’s pledge of reduction of GHG emission, responding to global climate change. In order to meet energy demand, and to reduce GHG emission as pledged to international community, Vietnam needs to aim target of sustainable development of energy sector. One of strategic measures is energy efficiency use and energy efficiency for society, especially energy intensive industrial enterprises such steel, cement, chemicals, food processing, consumer goods, etc. In fact, investment for energy efficiency is multiple-purpose measure, including resources saving, environmental pollution reduction, economic efficiency, energy 1 efficiency use, increasing competition in reduction of production cost, saving for energy expense. Therefore, proposed project “Vietnam Scaling Up Energy Efficiency” is important for social - economic development, environmental protection, improvement of energy efficiency activities, reduction of GHG emission in industrial and energy sectors, implementation of the Paris Agreement on Climate change and NDC of Vietnam for 2021 – 2030. Simultaneously, the project contributes importantly for implementation of the national priority policies on energy efficiency and energy security, reduction of GHG emission and environmental protection. Under Component 1, the Project will provide partial credit guarantee to Participating Financial Institutions (PFIs) to cover potential defaults on loan (PFIs Loans) provided by PFIs to Industrial Enterprises (IEs) and energy service companies(ESCOs) to finance eligible EE subprojects. These subprojects are under energy intensive industries such as cement, iron and steel, and pulp and paper. The following potential energy saving measures will be used: (a) adoption of energy saving industrial technologies (e.g., efficient industrial boilers, kilns, and heat exchange systems); (b) recovery and utilization of wastes and waste heat; (c) installation of highly efficient mechanical and electrical equipment (e.g. motors, pumps, heating and ventilation equipment); and (d) industrial system optimization to reduce energy use. Under component 2, the Project will provide different technical assistance and capacity building activities to MOIT, IEs, PFIs to leverage the energy efficiency policy development, commercial involvement, and industries voluntary agreements. The subprojects under the Bank’s partial guarantee have not been identified by appraisal. In addition, the nature and location of investments under the original VEEIE and the VSUEE Project are the similar. As such, during the preparation, the ESMF for the original VEEIE project has been updated by MOIT to ensure that it is pertinent for VSUEE Project. The ESMF provide guidance and sets out the requirements to ensure the safeguard compliance of the Project during implementation period. The ESMF is in accordance with the Bank’s safeguard policies and national legislations on environmental protection. The ESMF lays out procedures which includes: (i) screening mechanism to exclude ineligible subprojects, (ii) identification of environmental and social impacts associated with the EE project and the mitigation measures; (iii) procedures for preparation and approval/clearance of EA documents per GoV regulations and Bank safeguard policies which include an environment and social due diligence of existing facilities/IEs as part of the ESMF; (iii) monitoring, institutional arrangement and financial sources for ESMF implementation; and (iv) public consultation and information disclosure requirements in accordance to the Bank safeguard policies. The ESMF will be adopted by MOIT and integrated in the Project Operation Manual to ensure that environmental and social issues will be considered together with other requirements during project implementation,and possibly for post-project period. The social safeguard documents comprising the Resettlement Policy Framework (RPF) and the Ethnic Minority Policy Framework (EMPF) for the project have been prepared separately and submitted to the Bank. The safeguard screening and preparation of EMPs, RPs, and EMDPs for the future subprojects will be carried out during implementation. 2 II. PROJECT DESCRIPTION II.1. Project Objectives and Components Project Development Objective (PDO): The Project Development Objective is to improve energy efficiency in Vietnam's industrial sector through the mobilization of commercial financing. Project components:The Project comprises two interrelated and closely coordinated components. The Project complements the existing Vietnam Energy Efficiency for Industrial Enterprises Project (VEEIE)1 by supporting similar energy efficiency investments in the industrial sector and sharing implementation arrangements. (1) Component 1 –Risk Sharing Facility - RSF GCF provides a seed funding grant of 03 million USD to pay for Program Implementing Entity including PIE’s operating expenses and resolving issues arising from the guarantees during the first operating years of the project (if any) in order to assess the GCF RSF managed by the World Bank. PIE will conduct activities relevant to providing risk guarantees for energy efficiency loan project in the Vietnam’s industrial sector, facilitating energy efficiency investment project to assess US$ 75 million from RSF developed by GCF and authorized by the World Bank. The Fund will provide a partial credit risk guarantee (sub-guarantee) for the Participating Financial Institutions (Commercial Banks) to guarantee Industrial Enterprises’ loans. In case IEs have insufficient cash to service the debt will lead to the inability to repay loans to PFIs, the RSF will make payment with an estimated average guarantee of 50% amount of debt during the project period. Currently, according to normal trading mechanism, the PFIs decide the interest rate when reviewing, evaluating, appraising and negotiating with IEs in order to ensure the competitiveness in the market. However, with the provision of an estimated average of 50% amount of debt from GCF, it will be one of the factors for the commercial banks to consider reducing loan interest rate due to the shared risk factors of the project and the lower requirement of collateral. In addition, the technical assistance using ODA fund will also be focused on supporting PFIs’ professional activities (such as selection, appraisal, project management …) and building capacity for PFIs in order to reduce input costs, thereby contributing to reducing loan interest rate to IEs. Industrial enterprises, ESCOs, and consulting firms will also be provided essential technical assistance for project development, capacity building and image promotion… during the implementation of project. During the development of project, the World Bank and Ministry of Industry and Trade conducted series of consultation workshops with the participation of enterprises, commercial banks, financial institutes, PFIs all expressed their interest in the guarantee fund and proposed to reduce loan interest rate from 1 – 1.5% when the guarantee is covered. All of these factors will contribute to increase the feasibility of each energy efficiency sub-project as well as the feasibility of VSUEE during the implementation of project. (2) Component 2: Technical assistance: 1 The Vietnam Energy Efficiency for Industrial Enterprises Project (VEEIE) (P151086) was approved by the World Bank Executive Directors on April 14, 2017 and became effective on December 29, 2017. The Project consists of an IBRD Loan of US$100 million and an IDA Credit of US1.7 million. The IBRD Loan will be on-lent by the Ministry of Finance (MoF) to PFIs for financing energy efficiency investments made by IEs/ESCOs. The IDA Credit will provide capacity building support to MoIT on implementation and monitoring of energy efficiency measures. 3 - Study, develop mechanisms, policies and solutions to achieve energy efficiency objectives; support to develop energy efficiency business models in the industrial sector; - Study, develop technical guidelinesto promote the application of energy management solutions for Vietnam’s industrial sectors; - Building capacity for managers, technical staffs of Ministries, localities, industrial zones, key energy consumption facilities, supporting the implementation of short-term and long-term training programs on human resources in the field of energy efficiency, training, conferences, workshops, communication, experience sharing inland and outland related to energy efficiency in industries, energy and climate change response, green growth.; - Building capacity for PFIs to improve their knowledge, experience and expertise in identifying, appraising and implementing energy efficiency lending projects in the industrial sector and business development of energy efficiency credit products; - Building capacity for IE and energy efficiency service providers (Energy Service Company - ESCOs) to identify energy efficiency projects and carry out energy audits, technical designs and project preparation to develop bankable projects; - Support the implementation of Vietnam’s NDCs commitment in energy, industry to implement the Paris Agreement on climate change such as developing and operating MRV systems for GHG reduction at the sector level, sub-industry, studying the development of GHG emission factors for a number of high emission sectors, developing NAMA proposals and implementation mechanism for some potential industries, pilot developing low carbon emission models for industrial enterprises; - Support the management, supervision, operation of the project such as the operation of Project Office, purchasing equipment, renting office for project staffs and experts, travel supports, accommodation and perdiem for project managers and support staffs. A detailed TA and capacity-building program and plan for the MoIT, PFIs, andIEs, and the associated procurement plan, will be developed for the first 18 months. II.2. Project target area The project targeted to industrial enterprises (IEs) and participating financial institutions (PFIs) in nationwide scale. The IEs will benefit from adopting improved technologies and optimization of production thus reducing energy consumption and production costs, thereby increasing their overall competitiveness in the domestic and international markets. The PFIs benefit from creation of new loan product for industrial EE, building technical capacity for EE investment appraisal and monitoring, which will enable them to scale up EE lending to industries. Participating government agencies will be supported to strengthen capacity in the development of the regulatory framework, relevant EE standards and guidelines. II.3. Anticipated subproject types Energy efficiency technologies vary by industrial sub-sectors but typical energy-saving measures includes: - Energy systems: upgrading boilers and switching fuels, using co-generation facilities and electric-driven systems, including compressed air systems, electric chillers, machinery and lighting; - Process technology: upgrading and replacing equipment, machinery and facilities; - Waste heat and waste use: use of waste heat (of hot/warm gases, liquids and solids) and burning combustible waste (gases, liquids, solids). 4 - Use of Renewable Energy (RE) sources in order to decrease fuel and/or electricity consumption in IEs may also be considered. The Figure 1below depicts the energy flows and investment in typical industrial enterprises. Figure 1.Potential EE Measures Energy intensive industrial sectors include cement, steel, textile, pulp and paper, food processing, bricks and ceramics, which are originated in targeted sub-projects. Hereafter is listed some of potential energy efficiency and energy saving projects of three intensive energy industrial sectors including cement, steel, pulp and paper. Energy saving and energy efficiency projects for cement industry include, but not limited as: - Using roller mill for grinding raw material, - Improving furnace fans and optimization of fans, - Installation of variable speed drivers, - Using waste fuel and waste heat recovery. - Utilization of heat exhaust for power generation. Energy saving and energy efficiency projects for steel and iron industry include, but not limited to: - Oxy-fuel burners/lancing - Construction of closed production lines - Replacement of low performance air compressor, - Installation of inverter for motor to operate at low or fluctuating load. - Waste Heat Recovery utilizes the heat from flue gas (exhausted heat from electric arc furnaces, furnaces, kilns, etc.). - Combustion air preheating for reheating furnace. Energy saving and energy efficiency projects for Pulp and paper industry include, but 5 not limited to: - Investment of a new efficient boiler for cogeneration (heat and electricity), - Replacement of motors, - Switching biomass fuel technology, - Chemical waste recovery for heating. 6 III. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK III.1. Applicable National law and legal regulations The following Vietnamese laws, decrees and standards are applicable to the Project: - Law on Environmental Protection No 55/2014/QH13 dated June 23, 2014. - Law on Cultural Heritage (2009) for supplementary and reformation - Labor Law No.10/2012/QH13. This law stipulates labor standard; right and obligation of employee, employer, representative organization of employee, representative organization of employer in labor relations and other relations directly related to labor relations; state management of labor. - Law on Safety, Labor Sanitation No. 84/2015/QH13 dated June 25, 2015. This law stipulates ensuring safety and labor sanitation; policy and regulation for labor accident and occupational diseases; responsibility and right of organizations and individuals in safety and labor sanitation and state management of safety and labor sanitation. - Law on Fire Prevention and Fighting No.27/2001/QH10 dated June 29, 2001. This law stipulates fire prevention and fighting; establishing human resources, equipment and machineries and policy on fire prevention and fighting. - Decree 40/2019/NĐ-CP dated 13/05/2019 by the Government on revision, amendment some provisions of Decrees stipulated detail the implementation of the Law on Environmental Protection. - Decree 19/2015/NĐ-CP dated 14/02/2015 by the Government stipulated detail the implementation of a number of articles of the Law on Environmental Protection. - Decree No.18/2015/NĐ-CP dated 14/2/2015 by the Government on environmental protection assessment, strategic environmental assessment, environmental impact assessment and environmental protection plans. - Decree No.38/2015/NĐ-CP dated 24/4/2015 by the Government on Waste and scrap Management. - Decree No. 155/2016/ND-CP dated 18 November 2016 of the Government prescribing administrative sanctions for environmental protection. This decree stipulates administration violation in environmental protection including (i) violation of environmental protection plan, environmental impact assessment and environmental protection projects; (ii) actions to cause environmental pollution; (iii) violation of management of wastes, etc. - Decree No.80/2014/NĐ-CP dated 06/8/2014 by the Government on the drainage and treatment of wastewater. - Circular No.26/2015/TT-BTNMT dated 28/5/2015 by the Minister of Natural Resources and Environment promulgates the Circular providing for detailed environmental protection project, simple environmental protection project. - Circular No.27/2015/TT-BTNMT dated 29/5/2015 by the Minister of Natural Resources and Environment on strategic environmental assessment, environmental impact assessment and environmental protection plans. - Circular No.25/2019/TT-BTNMT dated 31/12/2019 by the Minister of Natural Resources and Environment on detailing a number of Articles to implement the Decree No. 40/2019/ND-CP dated May 13, 2019of the Government on amendments to Decrees on guidelines for the Law on Environment Protection. 7 - Circular No.36/2015/TT-BTNMT dated 30/6/ 2015 by the Minister of Natural Resources and Environment on Hazardous Waste management. - Decision No.16/2015/QĐ-TTg dated 22/5/2015 by the Prime Minister stipulating on recovery and dealing with disposal material. - National Technical Regulations comprise of but not limited as below: • QCVN 07: 2009/BTNMT - National Technical Regulation on Hazardous Waste Thresholds; • QCVN 23: 2009/BTNMT - National Technical Regulation on Emission of Cement Manufacturing Industry; • QCVN 22: 2009/BTNMT - National Technical Regulation on Emission of Thermal Power industry; • QCVN 19:2009/BTNMT - National Technical Regulation on Industrial Emission of Inorganic Substances and Dusts; • QCVN 12-MT:2015/BTNMT - National Technical Regulation on the effluent of pulp and paper mills; • QCVN 01-MT:2015/BTNMT - National technical regulation on the effluent of natural rubber processing industry; • QCVN 13-MT:2015/BTNMT - National technical regulation on the effluent of textile industry; • QCVN 08:2015/BTNMT - National technical regulation on surface water quality; • QCVN 09:2015/BTNMT - National technical regulation on underground water quality; • QCVN 10:2015/BTNMT - National technical regulation on Coastal water quality; • QCVN 11:2008/BTNMT - National technical Regulation on effluent of aquatic product processing industry; • QCVN 14:2008/BTNMT - National technical regulation on domestic wastewater; • QCVN 05:2013/BTNMT - National technical regulation on ambient air quality; • QCVN 06:2009/BTNMT - National technical regulation on hazardous substances in ambient air; • QCVN 40:2011/BTNMT - National Technical Regulation on Industrial wastewater; • QCVN 26:2010/BTNMT - National Technical Regulation on Noise; • QCVN30:2012/BTNMT - National Technical Regulation on Industrial Waste Incinerator; • QCVN 61-MT:2016/BTNMT National Technical Regulation on Solid Waste Incinerator • QCVN 18:2014/BXD – National Technical Regulation on Safety in Construction III.2. World Bank Safeguard Policies Triggered The World Bank's environmental and social safeguard policies are a cornerstone of its support to sustainable poverty reduction. The objective of these policies is to prevent and mitigate undue harm to people and their environment in the development process. These policies 8 provide WB’s requirements to the borrowers in the identification, preparation, and implementation of programs and projects. The World Bank environmental and social safeguards policies that are triggered by VSUEE are listed in below: ` Table 1. World Bank Safeguards Policies triggered by the VSUEE Project World Bank’s Safeguard Policies Triggered Environmental Assessment (OP/BP 4.01) Yes Natural Habitats (OP/BP 4.04) No Forests (OP/BP 4.36) No Pest Management (OP 4.09) No Physical Culture Resources (OP/BP 4.11) Yes Indigenous Peoples (OP/BP 4.10) Yes Involuntary Resettlement (OP/BP 4.12) Yes Safety of Dams (OP/BP 4.37) No Projects on International Waters (OP/BP 7.50) No Projects in Disputed Areas (OP/BP 7.60) No The World Bank’s Interim Guidelines on the application of Safeguard Policies to Technical will apply for TA activities financed under the project related to policy development support. The TORs for these activities will include the requirement of are required to include the analysis of potential environmental effects of the recommended policies. The World Bank definitions and requirements for environmental safeguards policies triggered are presented as the following paragraphs: OP/BP 4.01 - Environmental Assessment In World Bank operational policies, the purpose of Environmental Assessment is to improve decision making, to ensure that subproject options under consideration are sound and sustainable, and that potentially affected people have been properly consulted. To meet this objective, the World Bank policy defines procedures to: (a) identify the level of environmental risk (screening) that originated from a project, (b) assess the potential environmental impacts associated with the risk and how they should be reduced to acceptable levels (environmental assessment and management), (c) ensure the views of local groups that may be affected by the project are properly reflected in identifying the environmental risk and measures of mitigating and managing any impacts (public consultation), (d) make certain that the procedures followed in the environmental assessment process are adequately disclosed and transparent to the general public (disclosure), and (e) includes measures for implementation and supervision of commitments relating to findings and recommendations of the environmental assessment (environmental management plan). According to the OP/BP 4.01, the WB classifies the projects based on the extent, location, sensitivity, and scale of the project and the nature and magnitude of the potential environmental impacts. A project which causes significant adverse environmental impacts that are diverse, irreversible and unprecedented is categorized as A and for this project, a full Environmental Assessment (EA) needs to be conducted. Category B projects are those with less significant adverse impacts which are site-specific, few if any of them are irreversible; 9 and in most cases mitigation measures can be designed more readily than for Category A projects. Category B project will require preparation of Environmental Management Plan (EMP) or an EIA with scope narrower than that of category A. The project that causes minimal or no adverse impact is categorized as C and beyond screening, no environmental assessment is required. Last one is Category Financial Intermediary (FI) if it involves investment of Bank funds through a financial intermediary, in subprojects that may result in adverse environmental impacts. VSUEE is categorized as FI a project involving Financial Intermediaries which are called named as Participating Financial Institutions (PFIs). An Operational Manual (OM) will be developed which outlines selection criteria for sub-borrowers and subprojects, appraisal procedures and guidelines, roles and responsibilities of the PFIs and the government, PFIs’ internal institutional arrangement for project implementation, technical evaluation, environmental and social, procurement and financial management frameworks that are consistent with the Bank and Vietnamese Government rules and procedures. During project implementation, the PFIs will be responsible for identifying, appraising, and financing subprojects that meet the criteria in the OM, and bear all associated risks. In addition, during the subproject implementation, PFIs, PIE and MOIT will be responsible for supervision and providing support for the safeguard implementation. PFIs, PIE and MOIT shall follow the procedures as pointed out in the ESMF to ensure the subproject comply with the Bank’s safeguard policies and national and local requirements. The ESMF shall be incorporated in the project’s OM. By design, the VSUEE Project involves the small construction activities for installation or replacement of energy efficient technologies and equipment under Component 1. The Project triggers the WB safeguard policy on Environmental Assessment (OP/BP 4.01); Physical Cultural Resources (OP/BP 4.11); Indigenous Peoples (OP/BP 4.10) with the presence of ethnic minorities or their collective attachment to land/natural resources in the subproject areas; and Involuntary Resettlement (OP/BP 4.12) the possibility of the involuntary taking of land, leading to relocation of loss of shelter, loss of assets or access to assets, or loss of income sources or means of livelihood. Any subproject triggering other safeguard policies has to be prior consulted with the WB. OP/BP 4.11 Physical Cultural Resources The objective of this policy is to avoid, or mitigate adverse impacts on cultural resources from development projects that the World Bank finances. Physical cultural resources include movable or immovable objects, sites, structures and groups of structures, natural features, and landscapes that have archeological, paleontological, historical, architectural, religious, aesthetic or other cultural significance. As a part of the subproject’s environmental impact assessment process, the ones that have impacts on physical cultural resources that are legally protected, and/or considered especially important or sensitive particularly to local groups (e.g. gravesites), will not be eligible for financing under the VSUEE. The project would not involve significant excavations, demolition, moving of earth, flooding, or other environmental changes. It is not expected that the Project will affect any known PCR. However, there is a possibility that some unknown PCR may be revealed during the subproject implementation as they include excavation activities. Therefore, the policy is triggered and a chance finds procedure has been prepared and included in the ESMF, site- specific subproject safeguards instruments, bidding, and contractual documents. 10 OP/BP 4.10: Indigenous Peoples The policy is triggered due to the potential presence of ethnic minorities or their collective attachment to land/natural resources in the subproject areas. The project will ensure that ethnic minority communities will fully benefit from the project and that they will be fully informed and consulted about the project, its potential impact and mitigation measures. Ethnic Minority Planning Framework (EMPF) has been prepared by Appraisal to guide the compliance with the World Bank’s OP 4.10. The EMPF will include an Annex with guidance for the preparation of SA among Ethnic Minority communities or alternatively include OP 4.10, Annex A – Social Assessment at the end of the document. OP/BP 4.12: Involuntary resettlement The types of EE projects to be financed under this project could include: (a) adoption of energy saving industrial technologies (e.g., efficient industrial boilers, kilns, and heat exchange systems); (b) recovery and utilization of wastes and waste heat; (c) installation of highly efficient mechanical and electrical equipment (e.g. motors, pumps, heating and ventilation equipment); and (d) industrial system optimization to reduce energy use. It will be likely that the EE subprojects financed under the proposed loan will be within the existing premises of industrial facilities. However, this policy is triggered to anticipate the potential need of land acquisition required for subprojects identified in implementation cycle. By appraisal, the resettlement policy framework (RPF) has been prepared to guide the compliance with the World Bank’s OP 4.12 and where relevant the preparation of Resettlement Plan during project implementation. The World Bank Group Environmental, Health & Safety (EHS) General Guidelines The EHS Guidelines are technical reference documents with general and industry-specific examples of Good International Industry Practice (GIIP), as defined in IFC's Performance Standard 3 on Pollution Prevention and Abatement. The EHS Guidelines contain the performance levels and measures that are normally acceptable to The World Bank Group and are generally considered to be achievable in new facilities at reasonable costs by existing technology. When host country regulations differ from the levels and measures presented in the EHS Guidelines, projects are expected to achieve whichever is more stringent. If less stringent levels or measures are appropriate in view of specific project circumstances, a full and detailed justification for any proposed alternatives is needed as part of the site-specific environmental assessment. This justification should demonstrate that the choice for any alternate performance levels is protective of human health and the environment. Industry Sector Guidelines of the World Bank Group In addition, depending on the nature of the proposed subprojects, relevant WBG’s Industry Sector Guidelines shall be applied during the implementation of the VEEIE. These guidelines include but not restricted for the following: For the subprojects involve utilization of forestry production such as pulp and paper mills: • Environmental, Health, and Safety Guidelines for Sawmilling & Manufactured Wood Products • Environmental, Health, and Safety Guidelines, Pulp and Paper Mills For the subprojects on Agribusiness or Food Production: • Environmental, Health, and Safety Guidelines for Food and Beverage Processing 11 For subprojects on cement and lime manufacturing, ceramic tile, textile and integrated steel mills • Environmental, Health, and Safety Guidelines for Cement and Lime Manufacturing • Environmental, Health, and Safety Guidelines for Ceramic Tile and Sanitary Ware Manufacturing • Environmental, Health, and Safety Guidelines or Textile Manufacturing • Environmental, Health, and Safety Guidelines for Integrated Steel Mills The EHS Guidelines and Industry Sector Guidelines are included in Annex 7 of the ESMF. Outline of EA procedure of the investment project The subprojects and IEs are requested to ensure environmental safeguard compliancesufficiently with the current environmental protection regulations of Vietnam during project cycle from preparation, approval, implementation and completion stages as presented below figure. Project cycle Environmental Assessment Pre-Feasibility Study EA Preparation - Draft EIA (all projects listed in appendixes IIa, and collumn 3 of amended Preparation Feasibility appendixes II of decree No.40/2019/NĐ- CP) and public consultation on draft EIA, EMP - Draft EMP (all project listed in collunm 5 Project Planning of amended appendixes II of decree and Detailed Design No.40/2019/NĐ-CP) Approved EIA, EMP by: - MONRE is approved all EIA of the projects in appendixes III of decree Project Appraisal No.40/2019/NĐ-CP) Appraisal (When EIA, EMP - Ministries and functional authoriteis are approved) which equal to ministries are approved EIA reports of remaining projects. - Provinces are responsible for certificate for EPP listed in appendixes IV of decree No.40/2019/NĐ-CP. Project Environmental supervision and monitoring Implementation Implementation and based on approved EIA/EPP Supervision Completion Certificate on Environmental Implementation Completion works and periodical and continuous (if Completion any) monitoring reports Figure 2. EA process in a Vietnamese project cycle The PIEs and PFIs shall screen, review to verify the proposed subproject and ensure that subproject owner carry out appropriate EA for the subproject. Before approving the 12 subproject, the PFI verifies that the subproject meets the national environmental requirements and is consistent with WB safeguard policies. If the proposed subproject would be not complied with the Vietnamese environmental protection regulations and World Bank guidelines, the additional actions shall be requested. For a project that is a World Bank guaranteed/financed investment project, an EA standard procedure has prescribed and become a widely recognized tool used in development planning and in the World Bank’s project cycle. The project cycle consist of the steps are illustrated in the Error! Reference source not found. below. Project cycle Environmental Assessment Identification Screening Complaints and Category C Pre-Feasibility Study Grievances Category A from Affected Category B Person (AP) Full EA required EA instruments determined st 1 Public Consultation Verbally or in writing Feasibility Terms of Reference Community Terms of Reference and (CR) RepresentativeEIA/ESMF Team Selection Study EIA Team Selection Preparation (as appropriate) Verbally or in EIA/ESMF/EMP Preparation EIA Preparation writing Project Planning - Draft EIA, EMP (Cat A can also have - Draft ESMF/EIA/EMP andDetailed Design ESMF) Registration by the - Public IE consultation on draft EIA/ESMF/EMP - Public consultation on draft EIA, EMP - Draft ESMF/EIA/EMP meeting government - Draft EIA, EMP meeting government and and the Bank requirements the Bank requirements - Disclosure of EIA, EMP - Disclosure of ESMF, EIA and/or EMP Discuss among (AP)/(CR)/ (The IE and /or Contractor) Review EIA, EMP Review EIA/ESMF/EMP - Finalize EIA, EMP - Finalize EIA/ESMF/EMP Appraisal Project AP resortcleared byNthe Bank and may EMP - EIA, - EIA/ESMF/EMP cleared by the Bank to the justice approved by the Government Agreement o - EIA/ESMF/EMP approved and accepted by obtained? Appraisal system - Final disclosure of safeguard documents the Government - Final disclosure of safeguard documents Ye s Action as greed Negotiation Loan Incorporate environmental provisions (ESMF/EIA/EMP) in Negotiation loan document Loan Close out Approval CompletionImplementation Project Implementation and Environmental supervision based on Supervision EIA/ESMF/EMP and loan agreement Implementation Evaluation of environmental aspects in Completion completion and evaluation report Report Figure 3. EA process in a World Bank project cycle 13 As defined in Article 10 (Decree 16/2016/ND-CP dated 16/3/2016and Decree 132/ND-CP dated 1/10/2018) on management and utilization of official development assistance and concessional loans from donors), the process of mobilization, management and utilization of ODA and concessional loans contains five stages: (i) Formulation and approval for the aid list (ii) Preparation, appraisal, approval of program or project dossals (iii) Signing International treaties on ODA and concessional loans (iv) Organizing the implementation of programs or projects (v) Supervision and evaluation of programs and projects The EA process in relation to the ODA project cycle according to the Government of Vietnam (GoV) regulation is described in Error! Reference source not found. below. Table 2. EA activities and required outputs in an ODA project GoV's Project stages EA Activities Outputs EA process Formulation and - Identify potential environmental and social impacts - Preliminary analysis of approval of aid list potentially generated from proposed environmental and Screening projects/programs. social impacts is - Develop strategy/plan to address or mitigate the included in a section identified project-related impacts. of DPO* document. Preparation, appraisal, - Confirm the project category for EA preparation as - Detailed EIA and/or approval guided in GoV Regulation (Decree 40/2019/NĐ-CP EPP approved. EIA preparation - EIA dated 13/05/2019, which is replaced the related - Summary of EIA or appraisal articles in decree 18/2015/ND-CP on Environmental EPP is presented as Protection Planning, Strategic Environmental one chapter in Assessment, Environmental Impact Assessment, and Feasibility Study (FS) Environmental Protection Plans) and/or consult with report. relevant environmental authorities for guidance. - Prepare EIA report or EPP in accordance with Decree 40/2019/NĐ-CP dated 13/05/2019 and Circular 25/2019/TT-BTNMT dated 31/12/2019 by the Minister of Natural Resources and Environment. - Develop an Environmental Management and Monitoring Program (EMMP) as a part of an EIA. Negotiation and - No action required - Not required signing of concessional loans. Implementation - Project owner and its representative (normally PMU) - Report on Supervision of EIA or are responsible for implementing the project according implementation of EPP compliance to agreements derived from the EIA or EPP reports. EMP/sampling - Environmental management agency is responsible for program prepared (if inspecting and supervising implementation of required). commitments stated in the project EIA of EPP. Completion - Before operation of a project can begin, the relevant - Certificate for Final evaluation state environment authority reviews/inspects the completion of project to ensure that the project has implemented all mitigation construction requirements for environmental protection as laid out in its EIA and/or EPP. * Detailed outline of a DPO is described in Annex II A- Decree 16/2016. ** Content of investment project documents (Feasibility study report) is referred to in Annex III A- Decree 16/2016 The World Bank EA process in each investment lending stage and in relationship to requirements of the Government of Vietnam is described synthetically in Table 3. 14 Table 3. Environmental Assessment Process of the GoV and the World Bank Indicative World Bank Government Timingof EA Environmental Environmental Responsibility of Government Responsibility of the World Bank Process2 Safeguards Management Requirements Requirements Identification - Shortlist of suitable - Draft of detailed project - Assign environmental and social Conduct and complete internal project (3 - 12 months) investment proposals is outline (DPO), as staff to work with the WB team. concept note (PCN) stage safeguard review requested from GoV for required by the GoV on - Provide the WB team with all process that includes: initial review. Official Development available information/data on - Screening project for (1) major potential - Potential Safeguard Assistance, which the potential project/subprojects environmental and social issues, (2) Policy issues associated includes one section on related to project location, identifying Safeguard Policies to be with the project identified. summary of EA, is scope, and type of investment, triggered, and (3) categorizing the project; prepared. and sensitivity (including any - Environmental category - Assessing safeguard capacity of the client; of the project assigned. pre-feasibility studies, EIAs, - Advising the Borrower on the World Bank’s environmental protection plans - Safeguards instruments 3(EPPs), etc.). environmental procedures and determined. requirements, including consultation and - Conduct site visits and carry out disclosure; and meetings with stakeholder on - Advising the Borrower on the type of EA potential environmental impacts. report or safeguard instruments to be prepared (e.g. EIA, ESMF, EMP, etc.) Preparation - For Category A projects: - Qualified consultant for - For Category A project: Conduct - Review, provide comments on, and clear (10 months – i) TORs for full EIA preparing EA reports and at least 2 public consultations as the draft TORs for Category A projects. three years) reviewed and cleared by other documents required by the World Bank. - Conduct site visits and join stakeholder the World Bank; ii) at selected. - For Category B: Prepare TORs meetings (if necessary) for addressing least two public - TOR for EA satisfactory as appropriate for environmental issues/concerns. consultations, one shortly to the World Bank. EIA/ESMF/EMP. - Provide technical assistance during EA after environmental - Budget for the contracts - Ensure that the TORs are preparation, including guidance to screening and before the (if paid by counterpart technically reviewed by the Borrower on the EA content and public TORs is finalized and 2 This indicative timing of the EA process varies depending on the project complexity. 3 Environmental Protection Programme (EPP) is a simplified EIA for small scale and low risk projects as per government EA regulation. 15 Indicative World Bank Government Timingof EA Environmental Environmental Responsibility of Government Responsibility of the World Bank Process2 Safeguards Management Requirements Requirements one when the draft EIA is fund) is available. World Bank team. consultation. prepared; iii) a separate - EA (EIA, EPP) meeting - Hire consultant for prepare EA - Review, provide comments on, and ensure Executive Summary of the government and the reports, including consultation quality of the EA reports. the EIA to be submitted WB requirements and during the process. - Consider the Borrower’s institutional to the Board. approved by the - Review and ensure quality of capacity to implement safeguards - For Category B projects: government. the draft EA reports. requirements and design project at least one public - Feasibility study meeting accordingly to enhance capacity where - Ensure that EA reports consultation. both government and WB needed. approved by relevant - EA instruments requirements. authorities. - For a Category A and non-transferred (EIA/ESMF/EMP) - Distribution of the EA project: Send EA reports to Regional - Ensure that all relevant draft prepared meeting summary (in English) to Safeguard Secretariat (RSS) for review safeguard instruments are government and WB the Board of Executive and final clearance. properly disclosed locally as requirements. Directors of the WB. required by WB. - For a Category A project: the Executive - Establish timeline and - Clear of Borrower’s Summary (in English) of the EIA to the - Request WB to disclose the requirements for safeguards monitoring Board before the departure of the appraisal draft safeguards instruments in independent (e.g., expert and reporting mission. Vietnam at the Info Shop. panel for high risk requirements in the - Officially submit all EA reports to - Help the Borrower to disclose the project Category A projects) or Project Operations WB for review and clearance. draft and final safeguards instruments at third-party monitoring Manual. the Info Shop. (audits) when anticipated. - Officially submit the EA reports - Disclosure of all relevant to relevant agencies for safeguards instruments appraisal and approval -Ministry locally and at the Info of Natural Resources and Shop before start of Environment - (MONRE/ local appraisal mission and authorities at provincial or 120 days4 before the district level). Board date. - Finalize the EAs reports taking 4 According to the Pelosi Amendment, a US government requirement, the U.S. cannot vote in favor of actions that have significant impact(s) on the "human environment" unless an EA (including any relevant supporting documents such as EMP, RAP, IPP etc.) has been disclosed at least 120 days before the Board date: (a) in-country, and (b) at the Bank's InfoShop. This covers all projects with significant impact on the human environment, regardless of category assigned by the Bank. 16 Indicative World Bank Government Timingof EA Environmental Environmental Responsibility of Government Responsibility of the World Bank Process2 Safeguards Management Requirements Requirements - World Bank clearance of into account the World Bank’s all EA reports if they are comments and send back to the acceptable to the World World Bank for its final review Bank before the and clearance. departure of the appraisal - Make proper final disclosure of mission. If improvement all EA reports locally in of EA reports is needed accordance with the World Bank World Bank’s conditional requirements. clearance is issued. Appraisal - The EA reports finalized - EA reports approved by - Finalize all EA reports based on - Review the EA studies and provide (1 – 3 months) and acceptable to the relevant authorities the conditions of their comments (if any) to ensure that the World Bank before the (Ministry of Natural conditional clearance by the instruments are consistent with WB end of the appraisal Resources and World Bank. safeguard policies. mission, if conditional Environment - Ensure that all relevant final - Ensure that EA reports are properly revised clearance was issued to (MONRE)/Local safeguard instruments are and finalized, and clear the EA reports if the Borrower before the government) properly disclosed locally as they are satisfactory. appraisal. - Proper disclosure of final required by WB. - Ensure that final EA reports are properly - Final EA studies properly EAs reports in the project - Send the World Bank disclosed locally and at the Info Shop. disclosed locally at area confirmation on disclosure of - Ensure that safeguards monitoring and project sites (in final EA reports. reporting requirements included in the Vietnamese),and at the - Request WB to disclose the final Project Operations Manual. Info Shop (in English) as safeguards instruments at the - Ensure that the Borrower’s system for required by the World Info Shop. monitoring and supervision of Bank policy on Access to Information - Ensure that safeguards environmental compliance is established. monitoring and reporting - Ensure that environmental management - Incorporation of requirements included in the requirements (e.g., EIA/EMP/ESMP) are safeguards requirements Project Operations Manual. covered in covenants of Financing in the Project Operations Manual - Establish a system for Agreement. monitoring and supervision of - Environmental environmental compliance management during project implementation. requirements (e.g., 17 Indicative World Bank Government Timingof EA Environmental Environmental Responsibility of Government Responsibility of the World Bank Process2 Safeguards Management Requirements Requirements EIA/EMP/ESMP) covered in covenants of Financing Agreement Negotiation - The Borrower's - Review and agree on - Understand environmental - Revise the environmental management and Board understanding and environmental management requirements requirements in the Financing Agreement if Approval acceptance of the management (e.g., EIA/EMP/ESMP) covered needed and help the Borrower understand (3 – 6 months) environmental requirements (e.g., in covenants of Financing them. management EIA/EMP/ESMP) covered Agreement. requirements covered in in covenants of Financing the Financing Agreement. Agreement. Implementatio - Environmental - Compliance with the GoV - PMU ensures environmental - Provide technical support to the Borrower n management environmental management system of the and supervise environmental compliance satisfactorily addressed. management regulations project is properly functioning. based on Financing Agreement, EIA, EMP, - A system for and requirements of the - Satisfactory ongoing safeguard and ESMF. (5 – 6 years) environmental monitoring World Bank’s related compliance in accord with EMP and supervision environmental safeguard or ESMF. established and policies. functional. - EA report including EMP revised if there are changes in the project design. Completion - Review of environmental - GoV project completion - Prepare dossier of request for - A separate WB task team leader to prepare (3-6 months) safeguard report. certifying the application of an ICR. implementation in the environmental protection works - The World Bank Task Team reviews final Implementation and measures for project monitoring reports and manages the Completion Report (ICR) operation. completion report process (ICR) to ensure submitted by the - Prepare ICR report meeting the (1), (2), (3), and (4) are adequately Borrower. The review will GoV and the World Bank addressed in the ICR report and request address (1) the key requirements. the Borrower to resolve any outstanding 18 Indicative World Bank Government Timingof EA Environmental Environmental Responsibility of Government Responsibility of the World Bank Process2 Safeguards Management Requirements Requirements safeguards issues in - Follow-up on any outstanding safeguards issues. operation, (2) compliance safeguards issues until they are with the World Bank satisfactorily addressed. policy and procedural requirements, (3) any problems that arose and their resolution as applicable, and (4) any significant deviations. 19 GAPs analyses of safeguard policies between the GoV and the World Bank In Vietnam, the most important steps relate to EA in the project cycle are the preparation and approval stages. During preparation and approval stages, two principal aspects are related to EA documentation. The GoV system normally requires Feasibility Study (FS) reports (including basic design) and separate EIA or Environmental Protection Plan (EPP) documents (with structure and content as defined in Decree 40/2019/NĐ-CP dated 13/05/2019). In addition, a required summary of the EIA report is presented in the FS report. The separate (and stand-alone) EIA or EPP is reviewed and approved by the competent agency, i.e. Ministry of Natural Resources and Environment (MONRE), provincial Department of Natural Resources and Environment (DONRE), or district level-agency. For the Law on Environmental Protection in 2014 and legal document under Law showed Vietnam’s efforts directed to policy harmonization between GoV and donors. The application of environmental assessment policies in Vietnam has gradually narrowed the gap between the two systems. However, significant differences remain between GoV environmental safeguard policies and those of the World Bank. These differences are listed in Table 4 below: 20 Table 4. Gap analyses of environmental safeguard policies between the GoV and the World Bank EA Process OP/BP 4.01 on Environmental Assessment Decree 40/2019/ND-CP, Circular 27/2015/TT-BTNMT Gap Filling Measures Stage Categories (A, B, C, FI) Categories: (groups of I, II and III) - Use the World Bank’s discretionary (on a subproject-by-subproject basis) Non-prescriptive on a case by case basis for The appendix IIa is a list of the industrial production approaches in screening projects the categorization, safeguards policies application, and categories which are potentially the environmental pollution significance of its impacts, and EA instrument identification. risks. The appendix divided in to 3 groups of I, II and III. subsequently to ascertain the project’s EA + The World Bank will classify the project as The appendix II is a project list to be required preparing category. category A, B, C, FI according to the nature and EIA report or EPP. magnitude of potential environmental and social The appendix III is Project EIA list to be approved by impacts. MONRE Screening Category A: Full EA required - Examine the magnitude and significance The appendix IV is Project EPP list to be certified by of the project impacts based on the project Category B: EA, ESMF, or EMP required Provincial Functional Environmental Authorities. type and scale, project location, sensitivity of environmental and social Category C, no EA required. + Normally the project owners selfscreen the project based issues, and nature and magnitude of on the categorization indicated in Decree 40/2019/NĐ- Category FI: EA or ESMF required. potential impacts. CPand consult the Provincial Department of Natural Resources and Environment (DONRE) or Vietnam Environment Administration (VEA) for the appropriate classification and EA report requirement of the project. All the prescribed projects listed as per Decree 40 need to prepare EA. + All projects are not listed in Annex IIa and II - Depending on the project impact, a range of - The type of EA instruments such as SEA or EIA is - Follow the World Bank requirements on instrument instruments are used to meet the World Bank’s decided based on Annex II, IIa, III and IV of Decree the type of EA instrument needed requirement, these include: ESMF, specific EA; 40/2019/ND-CP. EA EMPs, sectoral & regional EA; SEA; hazard or risk assessment; environmental audits. The World Bank provides general guidance for implementation of each instrument. 21 EA Process OP/BP 4.01 on Environmental Assessment Decree 40/2019/ND-CP, Circular 27/2015/TT-BTNMT Gap Filling Measures Stage - The World Bank helps Borrower draft the TOR for - TORs for EA are not required. - TORs for SEA, ESMF, EIA, and EMP are EA report and identify the scope of EA, a good practice to follow. procedures, schedule and outline of the EA report. Scope - Follow the World Bank’s TORs, scoping, - For Category A projects, EIA TORs is required - Normally after consultation with the local DONRE or and consultation requirements. and should be cleared by the Bank, and scoping MONRE for the EA category, the project owner will and consultation are conducted for preparation of proceed with EA report preparation. the TORs for the EA report. - During EA process, the Borrower consults project - During EIA preparation, the project owner shall consult - EA consultation as per government EA affected groups and local NGOs about the project’s (i) The People’s Committee of the commune, ward or regulation is not enough and the Borrower environmental aspects and takes their views into township (below referred to as commune level) in which and its consultant need to follow the account. the project is to be implemented; and (ii) representatives World Bank’s requirements on of communities and organizations directly affected by consultation and disclosure of information - For Category A projects, the Borrower consults the project by sending a written request for consultation during EA process. these groups at least twice: (a) shortly after together with EIA/EPP. After 15 working days of environmental screening and before the TORs for - Good consultation brings benefits to the Public consultation receiving a written request for consultation, if a the EA are finalized; and (b) once a draft EA report project design and contributes to project consulted agency fails to send a written reply to the is prepared. In addition, the Borrower consults environmental outcomes project owner, it is regarded as agreeing with the project with such groups throughout project owner’s investment plan. implementation as necessary to address EA-related issues that affect them. For Category B project at - For communities and organizations under directly least one public consultation needs to be affected of the project shall be carried out in the form of conducted. community meeting co-chaired by the commune People’s Committee and the PO. The representatives of - For meaningful consultations, the Borrower organizations and communities directly affected by the provides relevant project documents in a timely project shall be convened to. Results of the meeting shall manner prior to consultation in a form and be recorded in writing, and all discussed opinions, language that are understandable and accessible to signatures of the project owner representative and the group being consulted. representatives of involved parties. - Minutes of the public meetings are included in the reports. 22 EA Process OP/BP 4.01 on Environmental Assessment Decree 40/2019/ND-CP, Circular 27/2015/TT-BTNMT Gap Filling Measures Stage - Before the World Bank proceeds to project - After an EIA report is approved, the project owner shall - Follow the World Bank’s Policy on appraisal the EA report must be made available at formulate, approve and publicly display its Access to Information Policy in Disclosure public place accessible for project-affected groups environmental management plan at the office of the disclosure of project information, and local NGOs. Once the World Bank officially commune-level People’s Committee of the locality in including EA instruments. receives the report, it will make the EA report in which consultation of the community is made for English available to the public through the people’s information, examination and oversight. Infoshop. (Article 16, Decree 18/2015/ND-CP and Article 1, decree 40/2019/ND-CP). - For category A project, the Borrower retains - Not regulated in Vietnam policies. - Follow the World Bank requirements to independent EA experts not affiliated with the avoid conflict of interest project to carry out EA. - Project owner shall make, or hire an institution meeting the conditions provided in Clause 1, Article 13 (Decree - For category A projects of high risk or multi- Independent Expert 18/2015/ND-CP) and clause 4 and 5, Article 1 (Decree dimensional environmental concerns, the Borrower 40/2019/NĐ-CP dated 13/05/2019)to prepare an EIA should also engage an advisory panel of report. Project owner or consulting service provider independent, internationally recognized must fully meet the following conditions: (i) Having environmental specialists to advise on aspects of staff specialized in environment with university or the project relevant to EA. higher degrees; (ii) Having staff holding university or higher degrees and certificate on EIA in the fields - Experts/consulting firm will be selected through relevant to the project; (iii) Having physical-technical bid process under strict observation of the World foundations and special-use devices for measuring, Bank. taking, processing, and analyzing environmental samples, which meet technical requirements. In case of unavailability of qualified special-use devices, having a contract to hire a capable institution. 23 EA Process OP/BP 4.01 on Environmental Assessment Decree 40/2019/ND-CP, Circular 27/2015/TT-BTNMT Gap Filling Measures Stage - Review responsibility is internal to the World - Environmental impact assessment reports shall be - In addition to the Government Clearance procedure Bank. If the EA report is satisfactory, the World appraised by appraisal councils or appraisal service requirements, follow the World Bank’s Bank will issue its clearance memo. If the EA providers (only applied in Category A project). review and clearance procedures. report needs to be improved the World Bank will - Delegates review responsibility to MONRE and issue a conditional clearance with the DONRE depending on kind and scale of project as understanding that the Borrower will revise the EA prescribed in annex III of Decree 40/2019/ND-CP to satisfy the World Bank for the final clearance. - The appraisal will take place no later than 45 days at MONRE level and 30 days at DONRE level and 25 days at other levels for after receipt of a full eligible EIA or EPP. - Follow the World Bank’s guidance and Number and language of - Number of copies not specified. - The project owner has to submit at least seven copies of EIA report (depend on the number of appraisal council the Government requirements - Language requirement: English for Vietnam with EIA required for members) and one copy of the Feasibility Study or the an Executive Summary in English for a Category Economic-Technical argument for the proposed project. appraisal A project. - No requirement for feasibility survey: the World Bank does not advance discussions on any investments without the preparation by the Borrower of the minimum required technical studies that prove the investments are feasible from socio-economical and technical point of view. 24 EA Process OP/BP 4.01 on Environmental Assessment Decree 40/2019/ND-CP, Circular 27/2015/TT-BTNMT Gap Filling Measures Stage - For Category B projects, follow the Category A project contains the following major Category II and III Projects contain the following major Content of EIA report government EA regulation. contents: contents: - For Category A projects, two options - Should be in line with OP 4.01, Annex B - - Should be in line with Circular 27/2015/TT-BTNMT exist: i) follow two separate EIA outlines Content of an Environmental Assessment Report and clause 4, Article 1 and Template 4, appendix VI, of the World Bank and the Government; for a Category A Project. item I of Decree 40/2019/ND-CP ii) follow then government EIA format - Category B EIA reports typically follow similar with incorporation of the World Bank table of contents as Category A. requirements in alternative analysis, cumulative impact assessment, public consultation and disclosure, and EMP requirements. - During project implementation, the World Bank - The local DONRE is entrusted to supervise the - Project environmental management supervises the project’s environmental aspects on environmental compliance of the project. system needs to be established to monitor the basis of the environmental provisions and the and supervise safeguards compliance Borrower’s reporting arrangement agreed in the - By the end of project construction stage, the during implementation. Environmental Management Agencies will coordinate EA supervision loan agreement and described in the other project documentation, to determine whether the with Construction Management Agencies to supervise - Follow requirements in project Loan Borrower’s compliance with environmental the compliance of environmental management activities Agreement, EMP, and contract with covenant (primarily with EMP) is satisfactory. If stated in EA study. contractor to monitor and supervise compliance is not satisfactory, the World Bank will safeguards compliance. discuss with the Borrower action necessary to comply. 25 As a result, gaps as analyzed above, this ESMF shall consist of the World Bank’s guidance and the Government requirements to set out the principles, rules, guidelines and procedures to assess the environmental and social impacts of the VSUEE Project to ensure the EA process is carried out in compliance with national legislation and OP/BP 4.01. It provides an environmental and social screening process to allow for identification, assessment and mitigation of potential impacts by proposed subprojects/activities under the VSUEE Project at the time the detailed aspects are known in provision V hereafter. It also serves as guidelines for the development of sub-project/site-specific Environmental Management Plans (EMPs), Environmental Assessments (EAs), due diligence reports. The ESMF will be used to screen and manage potential environmental and social impacts arising from the VSUEE‘s subprojects implementation. 26 IV. POTENTIAL PROJECT IMPACTS AND MITIGATION MEASURES IV.1. Potential Impacts Overall this project brings benefits to industries and the environment by contributing to reduction of GHGs and pollutants, increases energy savings and encourages the promotion of the environmentally good industry practices. The sub-project may involves the small construction for installation or replacement of energy efficient technologies and equipment. The possible environmental impacts associated with the sub-projects during construction/installation could be noise, dust, labor safety, and disposal of wastes during the installation of new equipment, waste management for the inefficient equipment being removed; and in some case, the oil excluded from transformer which may contain PCB. The possible impacts during operation period of new equipment and facilities may include safety issues; air emission, solid waste, and wastewater which are considered as at a lower amount or lesser polluted than those arisen from old technologies and equipment. It is anticipated that most the sub-projects under VSUEE are category B with the above noted typical impacts which are assessed as localized, varying from small to moderate scale and mitigation measures could be readily designed. In any case, all subprojects will be screened carefully case by case, to determine the appropriate category and environmental safeguard instruments to manage the potential impacts. IV.2. Mitigation measures Given that most of the key impacts will occur due to small civil works, many of the potential negative impacts on physical, biological, and social environment could be mitigated through a set of general measures that are typically applied to most of construction projects to minimize impacts such as noise, dust, water, waste, etc. As part of the EIA/EPP orEnvironmental Management Plan (EMP), if required, for the project these general measures have been translated into a standard environmental specification namely the Environmental Codes of Practice (ECOPs) (Annex 4) and it will be applied to mitigate typical impacts of small civil works. The ECOPsdescribes typical requirements to be undertaken by the contractors and supervised by the construction supervision engineer during construction. They have been designed for this project to be applicable to the range of small to medium sized civil works. Relevant clause of the ECOPs will be included as an annex in the bidding and contract documents during detailed design stage. Scope and content of the ECOPs is as follows: Scope: Construction and installation activities for small works governed by these ECOPs are those whose impacts are of limited extent, temporary and reversible, and readily managed with good construction practices. The typical mitigation measures have been identified for the following aspects: - Dust generation - Air pollution - Impacts from noise and vibration - Water pollution - Drainage and sedimentation control - Management of stockpiles, quarries, and borrow pits - Solid waste 27 - Management of dredged materials - Disruption of vegetative covers and ecological resources - Traffic management - Interruption of utility services - Restoration of affected areas - Worker and public safety - Communication with local communities - Chance findings However, there may be site-specific impacts that require site-specific measures both during construction and operation stages such as mitigation measures for UXO clearance; disposal of oil containing PCB during the replacement of new technology; disposal of old parts and equipment; management of air emission, solid waste and wastewater from the operation of facilities during the operation period. These measures are to be identified and incorporated into the subproject EIA/EPP/ or EMPs. The potential environmental impacts and mitigation measures for certain specific EE investments are described in Table 5 below. 28 Table 5. The typical environmental and social impacts and mitigation measures of EE subprojects Energy efficiency improvement sub-project Environmental and social impacts Mitigation measures Projects related to energy systems Replace the conventional lighting system by energy In construction phase: In construction phase: efficiency lighting system (ex: energy saving lamp, - Safety issues during the installation of new - Waste management, safety measures as described LED, etc.) equipment i.e. work at height, electricity shock, in the ECOPs. etc. - Hazardous waste should be identified, labeled and - Disposal of hazardous waste (light tubes); and stored in a safe place, then transferred to licensed solid waste during the installation of new lighting organization for treatment according to hazardous system management requirement. In operation phase In operation phase: - Discharge hazardous waste (fluorescent tubes) - Issue Operation manual and safety procedures. - Save in energy consumption during production - Waste management procedures shall be in place. process resulting in lessen natural resource save and conservation and reduce total annual GHG. Replace the conventional cooling system by the In construction phase: In construction phase: system that apply inverter - Electrical waste. - Waste management, safety measures as described - Discharge refrigerant (HCFC) from replaced air- in the ECOPs. conditional equipment. - Hazardous waste should be identified, labeled and - Safety issues during the installation of new stored in a safe place, then transferred to licensed equipment organization for treatment according to hazardous management requirement. In operation phase - Electrical waste; In operation phase: - Save in energy consumption during production - Waste management measures and procedure shall process resulting in lessen natural resource be in place. Hazardous waste should be identified, save and conservation and reduce total annual labeled and stored in a safe place, then transferred GHG and HCFC. to licensed organization for treatment according to - Safety issues during the operation of new hazardous management requirement. equipment - The subproject operation shall include appropriate measures on labor safety. Improve the boiler efficiency by some solutions In construction phase: In construction phase: 29 Energy efficiency improvement sub-project Environmental and social impacts Mitigation measures such as burner improvement, flue gas recirculation, - Risks of labor safety. - Safety measures as described in the ECOPs. air divide in stages, etc. - Solid waste from waste materials - Waste management measures and procedure shall be in place In operation phase In operation phase: - Reduce pollutants discharge - Boiler operation from fuel combustion, itself - Save energy for heating process and reduce generate air pollutants such as NOx, SOx, and heat loss. particulate, CO2, and solid waste i.e. ash and slag. - Promote the initiatives and technical and - Generated air emission will be collected and treated technological improvements during production. via air treatment system. Frequent maintenance of air treatment system and monitoring to ensure emission will comply with application regulation. - Ash and slag will be transferred to permitted ash- pond. - However, the improved boiler after the project will lead to lesser fuel consumption and the emission load of pollutant. Replace insulation materials In construction phase: In construction phase: - Risks of labor safety. - Mitigation measures as described in the ECOPs - Disposal of wastes during the installation of new - Waste management measures and procedure shall equipment, waste management for the be in place inefficient equipment being removed; In operation phase In operation phase: - Save energy for heating process and reduce - Insulation material to help heating insulation to heat loss. lessen heating loss. Replacement of the insulation material will retain efficiency, save energy resulting emission reduction. Improve the insulation for steam pipeline In construction phase: In construction phase: - Risks of labor safety. - Mitigation measures as described in the ECOPs Solid waste from waste materials. - Waste management measures and procedure shall be in place In operation phase In operation phase: - Lessen steam loss and improve efficiency. - The same to above, improve the insulation for - Save energy for heating process. steam pipeline will lessen heating loss to retain efficiency and save energy resulting emission 30 Energy efficiency improvement sub-project Environmental and social impacts Mitigation measures reduction in. Improve the quality of water feeding for In construction phase: In construction phase: boiler - Risks of labor safety. - Mitigation measures as described in the ECOPs In operation phase In operation phase - Reduce generated non-contaminated - Residual non-contaminated solid waste/sludge will sludge/solid waste from supply water treatment. be periodical disposed appropriately - Reduce chemical usage for water treatment. - Chemical safety procedure shall be in place to - Periodical Waste water discharge from the prevent from chemical accident. boiler - Waste water will be collected and treated by the - Chemical hazard. treatment system of the company Install the steam trap of boiler In construction phase: In construction phase: - Risks of labor safety. - Mitigation measures as described in the ECOPs In operation phase In operation phase: - Reduce waste water which is periodically - Waste water will be periodically collected and discharged from condensers and pipes. treated in the wastewater system of IE. - Save fuel and energy during production - The steam trap is a device to respond to process. fluctuations in condensate load, condensate that should be discharged will instead pool inside the equipment/pipe to retain heating efficiency. The steam trap are to reduce condensate load, steam leakage cause steam will be wasted. Generally, these traps will help to save energy via reduced the source of consumed material and therefore reduce the air emission. - Generated air emission will be collected and treated via air treatment system. Frequent maintenance of air treatment system and monitoring to ensure emission will comply with application regulation. Use high efficiency compressor/install inverter In construction phase: In construction phase: - Risks of labor safety - Mitigation measures as described in the ECOPs - Solid waste discharge from waste equipment, - Safety procedure and measures shall be in placed lubricant, waste from oil filter, etc. In operation phase In operation phase: - Reduce electrical consumption. - The high efficiency compressor/ inverter are 31 Energy efficiency improvement sub-project Environmental and social impacts Mitigation measures installed for air-pressured generation or electricity - Ensure the stability of control system, transporting equipment to respond to fluctuations in operation system condition/load to reduce or save energy resulting emission reduction in. Replace the air leakage pipeline to reduce energy In construction phase: In construction phase: loss. - Risks of labor safety - Mitigation measures as described in the ECOPs - Solid waste from waste materials. In operation phase: In operation phase - The tight pipeline is replaced to reduce air loss and - Save fuel and energy during production save energy resulting emission reduction in. There process. is no negative impacts in operation phase - Reduce energy loss Use energy efficiency fan system. In construction phase: In construction phase: - Risks of labor safety - Mitigation measures as described in the ECOPs - Discharge solid waste including waste material, - Waste management measures and procedures noise emission during dismount old and install shall be in place new equipment. - Safety procedure shall be in place. In operation phase In operation phase: - Save energy - The new fans will consume less of energy (for example electricity), therefore, it will save energy and emission reduction of the whole system. There are no negative impacts in operation phase. Install inverter equipment for engine system. In construction phase: In construction phase: - Risks of labor safety - Mitigation measures as described in the ECOPs - Discharge solid waste, noise emission during dismount old equipment and install new equipment. - In operation phase In operation phase - The inverters are installed for electricity equipment - Save energy. to respond to fluctuations in operation condition/load to reduce or save energy resulting in emission reduction of the whole system Apply automatic control system to improve In construction phase: In construction phase: production control ability, improve equipment - Risks of labor safety - Mitigation measures as described in the ECOPs operation and energy usage. - Discharge solid waste, noise emission during 32 Energy efficiency improvement sub-project Environmental and social impacts Mitigation measures dismount old and install new equipment In operation phase In operation phase - Save energy and fuel. - The automatic control system will adjust - Reduce pollutants in air emission and solid automatically to consist to realistic operation waste condition/load to reduce energy consumption and save energy for emission reduction. - Air emission will be collected via treatment devices. - Solid waste will be collected, and transferred to permitted ash pond or recycle in the clinker production line Projects related to process technology Use amorphous magnetic core transformer to In construction phase: In construction phase: reduce electrical loss - Risks of labor safety - Waste management measures as described in the - Solid waste and hazardous waste (possibly ECOPs. including transformer oil. - Hazardous waste should be identified, labeled and stored in a safe place, then transferred to licensed organization for treatment according to hazardous management requirement. - The oil disposed from transformers shall be tested on PCB content. In case the oil is confirmed as PCB contaminated, then specific PCB management procedures shall be applied. (See Annex 5). In operation phase In operation phase: - Risk of fire explosion and impacts from high - The amorphous magnetic core transformer will electro-magnetic lessen electrical loss so that save energy and emission reduction. There would still occur risks of flame or blast but less than conventional transformers. - Comply with technical specification and safety measures for transformers. Apply energy efficiency technology replace for In construction phase: In construction phase: conventional technology (ex: replace roller mill by - Risks of labor safety - Mitigated measures as described in the ECOPs vertical grinding system in cement industry, - Discharge solid waste including replaced supercritical or ultra-supercritical in power equipment, noise emission during dismount old 33 Energy efficiency improvement sub-project Environmental and social impacts Mitigation measures generation) and install new equipment. In operation phase In operation phase - Reduce generated noise, solid waste, and air - Boiler operation from fuel combustion, itself emission. generate gaseous pollutants such as NOx, SOx, - Save fuel and energy during production Particulate, CO2, and solid waste of ash and slag. process. However, the replacement of energy efficiency technology led to lessen of fuel consumption and the emission load of pollutant for conforming environmental protection regulations. - Generated air pollutants will be collected and treated via air treatment system. Frequent maintenance of air treatment system and monitoring to ensure emission will complied with application regulation. - Ash and slag will be transferred to permitted ash- pond. Use advance technology burner to improve burning In construction phase: In construction phase: efficiency and save energy (ex: oxygen – fuel - Risks of labor safety - Mitigation measures as described in the ECOPs. burner technology replace for electricity in steel - Discharge solid waste, noise emission during industry, extract oxygen from air to supply directly dismount old and install new equipment. for coal burner in thermal power industry, etc.) In operation phase In operation phase - Save energy and fuel. - Positive impacts, no mitigation measures are - Reduce pollutants in exhausted gas. required - Labor safety - Boiler operation from fuel combustion, itself generate gaseous pollutants such as NOx, SOx, Particulate, CO2, and solid waste i.e. ash and slag. However, the replacement of energy efficiency technology led to lessen of fuel consumption and the emission load of pollutant for conforming environmental protection regulations. - Generated air pollutants will be collected and treated via air treatment system. Frequent maintenance of air treatment system and monitoring to ensure emission will comply with application regulation. 34 Energy efficiency improvement sub-project Environmental and social impacts Mitigation measures - Ash and slag will be transferred to permitted ash- pond. - Comply with labor safety procedures in O&M. Use new sources of energy that less pollution (ex: Pre-construction: Pre-construction: replace LNG, LPG for coal, use mixed coal, mixture - Occupy land for LNG port, storage, gas pipeline - The selected is far from significant industrial of bitum with antraxit coal for thermal power system. underground facilities, residential area and sensitive industry, etc) - Land expanded acquisition for storage, fuel ecosystem. handling and other facilities; - Make compensation and resettlement action plans conformed to National relevant regulations and WB’s OP/BP 4.10, 4.12 with adequate budget for conducting necessary activities. - Site selection shall be carried out including sufficiency of land area for the necessary works of the project. In construction phase: In construction period - Risks of labor safety and fuel handling process; - Mitigation measures as described in the ECOPs - Cause air, water, soil quality change, noise and site-specific measures. emission during dismount old, construction, and install new equipment. In operation phase In operation - Reduce emission of pollutants and greenhouse - Residual air emission will be collected and treated gases. via air treatment system. Frequent maintenance of - Increase burning efficiency, save energy for air treatment system and monitoring to ensure production process. emission will comply with applicable regulation. - Reduce discharge solid waste (ash) - Waste management procedure should be in place - Water pollution ability due to liquefied and - Emergency response for chemical leakage should gasified process, the transportation of LNG, be in place imported coal by ship activity. - Procedure of loading and un-loading material - Increase fire, gas leakage risk. should be in place. - Generated wastewater shall not be discharge directly in the water course; it shall be collected and treated appropriately. - Emergency response for explosion should be in place 35 Energy efficiency improvement sub-project Environmental and social impacts Mitigation measures Projects related to reuse waste heat and waste reuse Utilize the waste steam for heating water for boiler In construction phase: In construction phase: - Risks of labor safety; - Mitigation measures as described in the ECOPs - Generation of solid waste In operation phase In operation phase - Positive impacts, no mitigation measures are - Save fuel and energy during production required process. - Apply co-generator to utilize waste heat, In construction phase: During construction period bio-fuel. - Risks of labor safety; - Mitigation measures as described in the ECOPs - Discharge solid waste from used equipment. In operation phase In operation period - Reduce generated solid waste (ash) - Ash should be collected and transferred permitted - Reduce air pollutants emission. disposal site. - Save fuel and energy during production - Install the air pollution treatment system. process. - Monitor the air quality to ensure emission does not exceed national permitted threshold - Regularly maintain the air pollution treatment Reuse waste heat (ex: waste heat from clinker kiln, In construction phase: In construction waste heat from refine steel furnace, from boiler, - Risks of labor safety; - Mitigation measures as described in the ECOPs from blast furnace, etc) for other activities (power - Discharge solid waste, noise emission during generation, pre-heat materials, etc.) in industries. dismount old and install new equipment. In operation phase In operation phase - Waste management procedure should be in placed - Save energy and fuel. - Residual air emission shall be collected and - Reduce pollutants in exhausted gas. monitored to ensure the emission levels are below - Labor safety issues the permitted threshold. Monitor and mitigation measures the air quality, noise heating should be carried out. - Safety working procedure should be in place. Projects related to use of Renewable Energy Replace the input chemical, materials in the Pre-construction Pre-construction regards of energy saving (ex: use enzyme in dye - Land expanded acquisition for storage, fuel - Make compensation and resettlement action plans industry; use by-product from agriculture and the handling and other facilities; conformed to National relevant regulations and 36 Energy efficiency improvement sub-project Environmental and social impacts Mitigation measures bio-products as the decomposition agent in pulp WB’s OP/BP 4.10, 4.12 with adequate budget for and paper industry, solar, wind etc). conducting necessary activities. In construction phase: In construction phase: - Risks of labor safety; - Mitigation measures as described in the ECOPs - Discharge solid waste, noise emission, chemicals during dismount old, construction and install new equipment. In operation In operation phase - Install waste treatment system for the new type of - Reduce pollutants in air emission air pollutant. Frequent maintenance of air treatment - Discharge of chemicals which are less polluted system and monitoring to ensure emission will and less toxic than the original technology – comply with application regulation. - Increases fire and explosive and chemical - Safety measures, Emergency response for leakage risk. explosion, chemical leakage situation shall be in - Reduce quantity of input materials. place. - Save energy for heating process and reduce - Solid waste shall be collected and disposed heat loss. appropriately - Promote the initiatives and technical and technological improvements during production. Adjust the product quality with the energy saving In operation phase In operation phase purpose (ex: adjust the white level of paper to - Reduce quantity of input materials. - Solid waste and discharge chemicals shall be reduce energy consumption, etc) - Reduce amount of solid waste and discharged collected and disposed appropriately chemicals. Discharge solid waste/chemical that less polluted and less toxic. Replace fossil fuel by renewable energy sources Pre-construction Pre-construction (ex: solar energy, bio-fuel, waste oil for clinker kiln, - Land expanded acquisition for storage, fuel - Make compensation and resettlement action plans coal-additives energy for thermal power industry, handling and other facilities; conformed to National relevant regulations and etc.) WB’s OP/BP 4.10, 4.12 with adequate budget for conducting necessary activities. In construction phase: In construction phase: - Risks of labor safety; - Mitigation measures as described in the ECOPs - Discharge solid waste, noise emission, chemicals during dismount old, construction and 37 Energy efficiency improvement sub-project Environmental and social impacts Mitigation measures install new equipment. In operation phase In operation - Reduce pollutants emission (air and waste - Install waste treatment (system for the new type of water) pollution. Frequent maintenance of treatment - Discharge solid waste/chemicals that are less system and monitoring to ensure polluted and toxic emission/discharge will comply with application - Reduce quantity of input materials. regulation. - Increases fire and explosive and chemical - Solid waste and chemicals are collected and leakage risk. disposed appropriately. - Save energy for heating process and reduce - Safety measures, emergency response for heat loss. explosion, chemical leakage situation shall be in - Promote the initiatives and technical and place technological improvements during production. Envelop building for industrial companies In construction phase: In construction phase: (insulation for roof, walls, windows, doors) Utilize - Risk of labor safety. - Mitigation measures as described in the ECOPs Renewable energy in building (roof-top solar PV, - Generate noise, dust. solar water heaters, heat pump) - Fire by welding activities and electric connection between solar system and indoor electric facilities. - Solid waste from demolition, and installation. In operation phase: - Reduce pollutants (air and wastewater) In operation phase: - Less pollution and toxicity of solid - Set up waste treatment system for new pollutant. waste/chemicals. Need to maintain the insulation system, keep clean - Reduce input materials. the solar panels. - Increase potential fire. - Solid waste and chemical are collected and treated - Save energy from electric facility utilization, heat sufficiently. resistance and heat loss - Safety measures and emergency response Scale up utilization of technical innovation during measures shall be in place production. 38 V. PROCEDURES FOR SCREENING, REVIEW, CLEARANCE AND IMPLEMENTATION OF SUBPROJECT SAFEGUARD INSTRUMENTS This section of the ESMF describes the process for ensuring that the environmental and social concerns are adequately addressed through the institutional arrangement and procedures used by the project for managing the idenfication, preparation, approval, and implementation of the guaranteed subprojects. V.1. Safeguard Screening The purpose of screening is to determine the sub-project’s eligible for Project’s funding/guaranteeand to identify the subproject’s potential adverse impacts and risks on the environment and society, consequently to determine the appropriate safeguard instruments and mitigation measures to manage those impacts. Environmental screening will be carried out at the stage of identification and selection of subprojects. V.2. Eligibility Screening The purpose of eligibility screening is to avoid adverse social and environmental impacts that cannot be adequately mitigated by project or that are prohibited by a World Bank policy, or by international conventions. Ineligibility criteria, (i) prohibition under a World Bank policy, e.g., significant degradation or conversion of critical natural habitats, critical natural forests, etc.; (ii) contravention of the country obligations under relevant international environmental treaties, e.g., Montreal Protocol or Stockholm Convention, etc; and (iii) environment and social impacts so complex and adverse that are beyond the capacity of the PMU to manage. A subproject that falls under one of the ineligibility criteria will not be eligible for project financing/guaranteed. The PFIs will also carry out environmental and social due diligence on operation of existing IEs to ensure that the operation of IEs facilities complies with the national regulations on environmental protection and environmental assessment. A detailed protocol or TOR for conducting environment and social due diligences of existing facilities that will be supported by the project will be developed at the beginning of project implementation prior to the screening of the first sub-projects. The protocol or TOR will be submitted and approved by the Bank. The due diligence shall take into account the compliance of the existing facilities on performance of environmental and social management regarding but not restricted to following aspects: emission, wastewater discharge, waste management and disposal, occupational health and safety, periodical environmental quality monitoring, land acquisition, compensation, physical relocation, livelihood restoration and ethnic minority people in accordance to the national requirements. In case there is an outstanding issue, the facilities shall proposed a remedial plan with appropriate measures. And these plans shall be included in the loan contracts between PFIs and IEs and mitigation measures of these plan shall be monitored strictly during subproject implementation. Application and initial screening of project eligibility including environmental and social safeguard of IEs will be submitted to PFIs. The PFIs environmental staffs will check and appraise the completed filling up the Annex 1 for the initial screening. Eligible projects are: - If the subprojects only bring about positive impacts and/or causing minimal or no adverse impact, it is appraised as environmental eligible and beyond screening; no environmental assessment action is needed. 39 - The VSUEE Project only triggers the WB safeguard policy on Environmental Assessment (OP/BP 4.01) and OP/BP 4.11 on Physical Cultural Resources; Involuntary Resettlement (OP/BP 4.12), and Indigenous People (OP4/BP 4.10). Any subproject triggering other safeguard policies has to be prior consulted with the World Bank. If the subproject is determined as eligible, the impacts screening will be carried out to determine the category of the subproject and the safeguard instrument that the need to be prepared in accordance with the national regulation and the WB’s safeguard policies. The impact screening process is described in detailed in section V.1.2. The impacts screening regarding OP/BP 4.01 Environmental Assessment and OP/BP 4.11 will be covered under this ESMF. For the subproject triggering safeguard policies on Involuntary Resettlement (OP/BP 4.12), and Indigenous People (OP/BP 4.10); the requirements on EMPF will be followed. In case, the subprojects are a part of the IEs existing facilities and necessary documents of environmental and social safeguards are already available the screening will be carried out to determine its eligibility and the gaps of the available documents and if additional actions to ensure conforming the national regulations and the WB’s safeguard policies. V.3. Impact screening to determine sub-project category and safeguard instrument Subproject classification criteria World Bank’s categorization According to the OP/BP 4.01, the WB classifies the projects based on the extent and potential magnitude of the impacts. (a) Category A project which can cause significant adverse environmental impacts that are diverse, irreversible and unprecedented is categorized as A and for this project; a full Environmental Assessment (EA) needs to be conducted. (b) Category B projects are those with less significant adverse impacts which are site-specific, few if any of them are irreversible; and in most cases mitigation measures can be designed more readily than for Category A projects. Category B project will require preparation of Environmental Management Plan (EMP) or an EIA with scope narrower than that of category A. (c) Category C: The project that causes minimal or no adverse impact is categorized as C and beyond screening, no environmental assessment is required. GoV legal requirements The GoV legal documents, i.e. Decree No.18/2015/ND-CP and Decree No.40/2015/ND-CP, use a list of Project type to classify projects as presented below: a) The project list of the industrial production categories are potentially the environmental pollution risks and they are divided into 3 groups of I, II and IIIas listed in Appendix IIa of Decree No.40/2019/ND-CP. b) The project/activities list is required preparing EIA report or EPP as stipulated in Appendix II of Decree No.40/2019/ND-CP. Of which the project list the projects of which EIAs are subjected to MONRE appraisal and approval and stipulated in Appendix III. c) And the appendix IV stipulated a Project EPP list to be certified by Provincial Functional Environmental Authorities. d) Appendix III lists the projects of which EIAs are subjected to MONRE appraisal and 40 approval as they could cause potential high adverse impacts. Below are most relevant to the proposed projects: (i)The construction investment project which is approved and decided the investment agreement by Assembly or Prime Minister. (ii) Projects that use land of national parks, wildlife sanctuary; projects that use at least 1 hectares of land of national historical-cultural monument; at least 2 hectares of land of world heritage sites or national scenic beauties; or at least 10 hectares of international heritages or national scenic beauties; or at least 20 hectares of land of biosphere reserves; (iii) Construction projects for at least 600 MW power plants; construction projects for at least 20 MW hydroelectric power plants and irrigation works with a capacity of at least 100.000.000 m³ of water; (iii) Construction projects for sea encroachment at least 20 hectares; project that use at least 30 hectares of protection forests or specialized forests, at least 50 hectares of natural forests. (iv) Etc,. as presented in appendix III of Decree 40/2019/ND-CP. e) In addition, according to Clause 6, Article 1 of the Decree No.40/2019/ND-CP on the re- preparation of the EIA reports. 1. The project owner may only apply changes prescribed in Point a, b Clause 1 of Article 20 of LEP after the competent agency approves the re-compilation of EIA report. That is a construction investment projects, the non-implementation of projects any items of the Project in accordance with the construction law within 24 months 2. If a project whose EIA report is approved has one of following changes during their implementation. a. Increase of size, capacity to generate waste exceeding the waste treatment capacity of environmental protection works compared to the plan in the decision on approving the environmental impact assessment report. b. Technology changes to produce key products of the project; Change of waste treatment technologies of projects that are likely to adversely affect on the environment compared to the alternatives presented in the approval decision on environmental impact assessment reports. c. Expanding the investment scale of the Industrial Zone; Adding to industrial Zone investment types of industrial production which may cause environmental pollution specified in Group I and Group II of Appendix IIa, Clause I, Appendix of Decree No.40/2019/ND-CP 3. The re-compilation of EIA report, re-appraisal and re-approval for EIA report shall be carried out by getting the opinion. a. Project owners defined in Clause 1 of this Article may only continue the project implementation after they are received the approval decision on recompilation environmental impact assessment reports by competent agencies; The Project owners defined in Clause 2 of this Article may only conduct the above proposed changes after received the approval decision for recompilation environmental impact assessment reports for the change proposal by competent agencies. b. The approval decision on the re-compilation EIA report supersedes the previous approval decision 41 4. The activities/project’s EIA reports are approved by MONRE is list in the appendix III of the Decree No.40/2019/NĐ-CP. 5. The project’s EPPs are certified by Provincial Functional Environmental Authorities is list in the appendix IV of the Decree No.40/2019/NĐ-CP. The decree has a new stipulation remarkably on Responsibility of project owners/industrial enterprise (IE) pertaining to the approved EIA reports that the IEs will set up a plan for environment management (EMP) of project on the basis of program for management and observation of environment suggested in the EIA report and posted at the premises of the People’s Committee of the commune where the consultation is taken place when implementing EIA according to guidance of the Ministry of Natural Resources and Environment (MONRE). The environmental screening procedure for subprojects under VSUEE guaranteed is described inError! Reference source not found.. During the VSUEE implementation, the PFIs, in line with the World Bank safeguards policies,will conduct environmental and social screening of subprojects for their categorization (A, B or C) and determine the type of safeguards instruments that a subproject needs to prepare. Guidance on screening on environmental and social impacts screening is presented in Annex 2. The PFIs is advised to consult with the World Bank on complex subprojects to reach agreement on the category, the type of safeguards instrument, and the key impacts before embarking upon major studies. The PFIs must send to the WB the list of selected proposed subprojects and screening results at two screening levels as specified in Annex 1 and Annex 2. If the WB does not satisfy with capacity of PFIs in screening process, the PFIs shall provide additional strengthening measures to enhance capacity. A Project Management Board (PMB) set up under MOIT will provide support to enhance capacity for PFIs staff on safeguard screening and management via TA activities. The WB will associate with PMB to provide technical support to enhance capacity of PFIs as needed. Figure 4. Environmental screening procedure PFI and its Environmental STOP IE’s Application and primary NO staff/consultant appraise These screening of environmental application and primary subprojects are checklist safeguard policies screening. NOT eligible (Annex 1) submitted to PFI Is this sub-project eligible? for financing YES The subprojects trigger OP/BP 4.10 and/or OP/BP 4.12 C-type PFIs conducts Environmental Impact screening (Annex 2) of sub-projects. NO further environmental EIA/EMP/EP IEs, to prepare Disclosure and documents or processes P - type the Safeguard Public required. reports i.e. consultations EMP/EIA/EPP Keep Environmental and RP (if any) Impact screening records and visually inspect for issues occasionally. 42 V.4. Development of Subproject Safeguard Documents The subproject under VSUEE shall comply with national regulations on environmental assessment and protection and the World Bank’s safeguard policies. The IEs, when proposing subproject, will have to prepare requiring environmental document (an EIA/EPP) under prevailing Vietnamese Environment Protection regulations and the WB’s safeguard policies. IEs will prepare an EIA/EPP for each subproject at preparation phase, i.e. in parallel with the preparation of Economic-Technical Report (ETR) or Feasibility Study (FS) and conduct public consultations and information disclosure as guided in section 5.3. The content and format of EIA and EPP will follow the guide in Circular No. 25/2019/TT- BTNMT dated December 31 2019 and Clause 4 and 5, Article 1 of the decree No.40/2019/ND-CP. The content and format of RP and EMDP will follow the requirement set out in the Resettlement Policy Framework (RPF) and Ethnic Minority Development Framework (EMDF), except for the subproject’s land area is a part of land area of the existing facility that has occupied by the IEs. The scope and level of detail of the RAP vary with the magnitude and complexity of resettlement. In addition, in accordance to the World Bank’s safeguard policies, based on the impact screening, (i) for a category C subproject, the IE does not have to prepare any environmental safeguard document; (ii) for a category B subproject, the IEs should prepare one Environmental Management Plan (EMP); and (iii) for a category A subproject, the IEs shall hire consulting firm to prepare a full EIA meeting the WB’s requirements. Specifically, for category A subproject, before preparing EIA report, the IEs shall prepare TOR for the EIA report and send to World Bank for prior reviewing and clearance. For a category B sub-project of which an EIA or EPP has already been approved by GoV authorities, the PFI’s environment staff/consultant may consider making a due diligence to assess the adequacy of these reports. If any insufficiency is identified, the subproject owner will have to prepare one EMP with supplementary measures, submit to PFIs for eligible screening and impact evaluation prior transferred to review and approval by World Bank. The EMP consists of a set of mitigation, monitoring and institutional measures to be taken during construction and operation to minimize, reduce and/or eliminate any potential adverse environmental impacts to acceptable levels. It includes the entire subproject scope and impacts. The guidance for EMP preparation is provided in Annex 3. The EMP consists of the following elements are as follows: - Introduction - Subproject Description - Applicable Environmental legislations - Environmental and Social Impacts - Mitigation and Management Measures - Institutional Arrangement for safeguard implementation - Supervision, Monitoring and Reporting - Budget for EMP implementation - Public Consultation and Disclosure Environmental Management Procedures for subproject under components can be summarized as below 43 Table 6. Summary of environmental management procedures for subprojects under VSUEE Steps Environmental Action Required Implemented by Monitored/check By 1. Sub-project 1.1. Prepare basic information and submit Industrial PFIs identification to PFI for primary screening Enterprises (IEs) 1.2. Screening to determine eligibility PFIs WB will review the screening result 1.3. Screen to categorize sub-project as PFIs WB will review the A, B or C subprojects according to the screening result World Bank’s safeguard policies - For sub-projects that are classified as C- type: no further action required. - For subprojects of other categories, carry out subsequent steps. 2. Sub-project 2.1. Provide guidance to selected IEs or IEs PFIs/PIE check and preparation Environmental consultancy in preparing environmental appraise the sub-project necessary environmental documents, consultants dossier eligibly. collecting and recording required PMB will also provide all licenses/permits that comply with technical assistance approved ESMF activities under VSUEE. WB will do random checks 2.2. For category B sub-projects that PFIs and IE Reviewed PFIs/PIE and present an approved EIA/EPP which is WB still effective, conduct an environmental due diligence and request the IE to prepare an supplementary EMP if necessary 2.3. For category A subprojects, prepare IEs Monitored by PFIs/PIE the report on institutional capacity to carry and cleared by WB. out environmental safeguard and TOR for EIA preparation 2.4. Prepare draft EIA/EMP/EPP IE or IE’s Monitored by PFIs/PIE Carry out public consultations with environmental potential affected people and local consultants authorities about the content of EIA/EMP/EPP prepare meeting minutes and list of participants Include solutions to address community concerns into final EIA/EMP/EPP. Consultation records are filed for submission when required. Submit draft EIA/EMP/EPP to PFIs and WB (if required) for reviewing 2.5. Review the final EIA/EMP/EPP prior PFIs WB will selectively to submit for approval check environmental safeguard document of category B subprojects (30%) The WB will conduct prior review of EIA for all category A subprojects. 2.6. EIA/EMP/EPP (if any) EIA/EMP WB will clear the EIA approval/clearance cleared by PFIs report of all category A and/or WB subproject. WB will selectively provide clearance for EMPs of certain category B subprojects 44 Steps Environmental Action Required Implemented by Monitored/check By Local authorities Monitored by PFI for EIA/EPP EIA/EPP/EMP approval approved by appropriate local authorities 2.7. Prior to issue guarantee approval, PIE PMB check to ensure that adequacy of safeguards documents of PFIs’ guarantee proposals for IE’s subprojects: (i) all documents shall be approved by the relevant competent authority in line with national authorities (ii) for category A and some selected category B subproject, the EIA/EMP have been cleared by the Bank (iii) for certain category B subprojects subject to PFIs reviewing and appraisal, confirmation from PFIs that the EMP is acceptable to the Bank’s standards 3. Sub-project 3.1. Include mitigation measures and/or IEs Monitored by PFIs, bidding requirements in approved EIA/EMP/EPP PMB into bidding document - Include mitigation measures and Random check by WB requirements into rehabilitation document and contract (if any). - Include mitigation measures/requirements into equipment supplier contract (if any) - Include mitigation measures/requirements intoRequest for Proposal (RFP) and contractual documents for construction supervision consultants (if any) 4. Implementation Implement mitigation measures Contractor/IEs Monitored by PFIs, local phase authorities,PMB Internal monitored by IEs and/or environmental consultant or CSC hired by IEs Random check by WB Carry out internal environmental IEs and CSC Monitored by PFIs monitoring and supervision on daily basis Carry out external periodic environmental PMB, PFIs, Periodically check by monitoring independent WB consultant of IEs on periodic basis Collect and record environmental licenses IEs Monitored by PFIs, and permits necessary PMB Random check by WB Report on sub-project environmental Environmental Reviewed by PFIs, compliance to PFIs for review. consultancy of Random check by WB IEs Report on whole project environmental PFIs Reviewed by WB and compliance to WB and PMB for review PMB 45 V.5. Review, Approval, and Clearance of Subproject Safeguards Instruments V.5.1. Review and approval of safeguards instruments Government’s review and approval: If a subproject requires review and approval according to the government EA regulation, IEs will prepare and submit the EA report as required for review and secure the approval by relevant government authorities before subproject approval. The guidelines for appraisal and approval of an EIA or EPP are included in the respective government regulation (namely, Circular 25/2019/TT-BTNMT and Article 1 and Appendix II, IIa, III and IV of the decree No.40/2019/ND-CP). Evidence of the approval will be provided to the World Bank for information. PFI review and clearance: The PFIs will be responsible for screening the proposed subproject and ensure that subproject owner carry out appropriate EA for the subproject. Before approving the subproject, the PFI verifies that the subproject meets the national environmental requirements and is consistent with WB safeguard policies on Environmental Assessment (OP/BP 4.01) and OP/BP 4.11 on Physical Cultural Resources. PFIs and IEs are responsible to record and keep all safeguard documentation (Environmental screening forms, EIA/EPP/EMP consultation records, confirmation on public disclosure, environmental monitoring records, and waste collection contracts etc.) related to sub-projects. Safeguard implementation is a part of progress implementation report that PFIs will submit to the World Bank prior to supervision mission. The PIE, before issue the guarantee approval shall check to ensure that the PFI’s guarantee proposal include the confirmation that safeguard documents (EIA/EPP/EMP) of the subprojects: (i) have been approved by relevant local authorities; (ii) cleared by the Bank (for category A and some selected category B projects subject to the WB’s prior reviewing); and (iii) acceptable to the Bank’s standards (for category B subprojects that are reviewed and appraised by PFIs). In case the subproject is already under operation and applies for financing from the project, the application shall include the certification from regular monitoring by local DONRE (or MONRE depending on monitoring arrangement as EIA/ EPP approval) showing the subproject meeting the environmental monitoring requirements. World Bank review and clearance: The Bank will review screening results and selectively review environmental documents of about 30% of total subprojects. The Bank will review and clear the environmental reports of all the subprojects defined as category A in line with the WB’s safeguard policies. In addition, for the category A subproject applying for financing by the project, of which an EIA has not prepared as required by the Government, before preparing EIA, the subproject owner shall prepare TOR for the EIA report and send to the WB for prior review and clearance. If the EA report is satisfactory, the World Bank will issue its clearance memo. If the EA report needs to be improved, the World Bank will request IE to revise or issue a conditional clearance with the understanding that IE will revise the EA to satisfy the World Bank for the final clearance. V.5.2. Public consultation and disclosure of safeguard instruments During preparation of EIA/EMP/EPP, IEs will conduct public consultations to take the view of relevant stakeholders into account as required by national regulations and the WB’s safeguard policies. 46 Regarding the national regulation, the requirements on public consultation are prescribed at Decree 18/2015/ND-CP and Clause 4& 5, Article 1 of the decree No.40/2019/ND-CP, Circular 25/2019/TT-BTNMT.Concretely, during EIA preparation, IEs will consult commune-level People Committee and representatives of residential community and organization which is directly affected by the subproject. During EMP/EPP preparation, IEs will consult with the potential affected people. The Bank’s safeguard policies require that for all category A and B project, during the EA process, the IEs to consult with project affected people (PAPs) and local nongovernmental organizations (NGOs). For Category A subprojects, the IEs consult these groups at least twice: (a) shortly after environmental screening and before the terms of reference for the EA are finalized; and (b) once a draft EA report is prepared. In addition, the IEs consult with such groups throughout project implementation as necessary to address EA-related issues that affect them. During the preparation of EIA/EPP/EMP documents, public consultation must be carried out in a form convenient to the local people (e.g. survey, meeting, leaflet, signboard etc.) and information on the main findings of environmental impacts and proposed mitigation measures must be provided in the local language understandable for the majority of the affected people. The public consultation activities - including date, location, and publication form, comments from consulted people and responses from subproject owner (IEs) - shall be documented and taken into account into finalization of EIA/EMP/EPP report. V.5.3. Disclosure of EA documents During subproject preparation, all EIA/EMP/EPP for subprojects must be disclosed in a timely manner, in an accessible place, in a form and language understandable to stakeholders. The PFIs should confirm with the Bank and PIE that hard copies of draft EMP/EIA (in Vietnamese) are disclosed locally at the subproject area, at the PFI office and websites, and Commune People Committee’s office, and accessible to the public and the time for such disclosure. Information disclosure of all subprojects will be done before the appraisal of the Economic-Technical Report or Feasibility Study of the subprojects. For category A subproject, the IE must send the EIA report in English language to the WB to disclose in the Infoshop. An Executive Summary of the EIA should also be prepared and disclosed in both English and local language. V.6. Implementation, Supervision, Monitoring, and Reporting V.6.1. Implementation During the subproject implementation, the IEs will have the overall responsibility to ensure the effective implementation of safeguard requirements as set out in the approved/cleared environmental documents (EIA/EMP/EPP). Concretely, IEs shall incorporate EMPs/ECOPs into included in bidding and contractual documents. Pursuant to the contract, the construction Contractor is responsible for carry out mitigation measures as described in EMP/ during the subproject implementation. V.6.2. Supervision and Monitoring During subproject implementation, the mitigation measures outlined in the EIA/EMP/EPP should be monitored to ensure that they are implemented in a timely and adequately manner. In some cases, it is necessary to take additional measures to ensure that all arising impacts are adequately addressed. 47 Internal monitoring IEs will assign a staff or hire construction supervision consultant (CSC) to assist IEs in supervising the contractor’s implementation of mitigation measures set out in approved/cleared EIA/EMP/EPP. The CSC will assist IE to supervise the contractors safeguard performance on daily basis. IEs will contract with an independent environmental consultant to carry out environmental quality monitoring on the soil, air and water quality, as set out in approved EIA/EMP/EPP. The results will be reported in document to IE. IE shall submit the periodic monitoring reports to PFIs, functional authorities and stakeholders (if required). External monitoring Local authorities (DONRE/MONRE) are responsible for inspection on IEs compliance with approved EIA/PP. - PFIs will periodically conduct monitoring safeguard compliance of IEs during the subproject implementation and 1st year of operation. The monitoring of PFIs will be conducted during project cycle and post-project period. - External monitoring on safeguard implementation of PFIs and IEs is the responsibility of PIE and PMB. During project cycle, the external monitoring will be assisted by independent monitoring consultant hired by PMB. Generally, it will be at least twice per year category A subproject and at least one per year for category B subproject. The monitoring on IEs performance shall be conducted during subproject implementation and 1st year of subproject operation phase. During the post project period, PIE will conduct random external monitoring, as necessary, on the safeguard compliance of the guarantees/subprojects. - Local communities are encouraged to participate supervision. If there are complaints from local subproject-affected groups, IE should send staffs in a timely fashion to assess the validity of complaints and take any necessary actions to remedy the situation. Reporting on the implementation of the EIA/EMP/EPP should be sent to the PFIs as part of the progress reports. - WB will provide technical guidance if necessary to PFIs to enable them to fulfill their supervision responsibilities and related reporting and documentation requirements. V.6.3. Reporting The industrialenterprises (IE) will prepare periodic reports on implementation of mitigation measures and internal monitoring as scheduled in EIA/EMP/EPP reports. These reports shall be sent to PFIs every 06 month during the subproject implementation and first year of operation. During project cycle, the PFIs shall submit the biannually environmental monitoring reports on its financed subprojects to PMB and PIE about 04 weeks before the WB’s implementation support mission. The PMB and PIE will incorporates theirmonitoring results (every 06 month) and the results from PFIs and submit one integrated monitoring reports to the WB before each implementation support mission. It’s is recommended that during post-project period, PFIs shall report to PIE on environmental safeguard compliance of their subprojects under guarantee every 06 months. The PIE based on the monitoring report of PFIs and their external monitoring, will request the IEs and PFIs to take remedial actions to ensure environmental safeguard compliance. 48 PMB under MOIT, PFIs WB MOF, VSB Environmental Consultant CSC Contractor Reporting line Monitoring line Figure 5. Reporting System V.7. Safeguard requirements for activities under project component 2 The Technical Assistant (TA) under component 2 mostly involves capacity building activities. These activities usually do not cause potential adverse environmental and social impacts and risk. In fact, it would result in enhancement of safeguard performance of subproject under Component 1. For that, these TA are categorized as C and none safeguard instrument will need to be prepared for these activities. In addition, during the implementation, all the TA activities will be screened for their potential environmental and social implications, risk and impacts, environmental categorization, and the selection of relevant safeguard instruments. The environmental consultant of PMB will refer to the “Interim Guidelines on the Application of Safeguard Policies to Technical Assistance (TA) Activities in Bank-Financed Projects and Trust Funds Administered by the Bank5” to screen the TA for their implications on environmental and social impacts and determine the appropriate safeguard instruments. 5This note builds on “2007 Guidelines for Environmental Screening and Classification” and “2010 Interim Guidance Note on Land Use Planning”. To address potential environmental and social implications of development policy lending, please refer to OP/BP 8.60 on “Development Policy Lending”. The information provided in this document should also be used by Bank Staff to help guide them in preparing and conducting Reimbursable Advisory Services. 49 VI. IMPLEMENTATION ARRANGEMENT VI.1. Responsibility for ESMF Implementation The executing agency will be Department of Energy Saving and Sustainable Development of the Ministry of Industry and Trade (MoIT) with a central Project Management Board (PMB),which is the current Project Management Board (PMB) the VEEIE will coordinate and supervise VSUEE implementation its. The PMB will be responsible for managing and supervising overall VSUEE, monitoring VSUEE progress, including safeguard compliance and reporting regularly to MOIT and WB. The PMB will also manage all technical assistance activities under VSUEE and will make requests to MOF to make the TA-related payments from the special accounts established under VSUEE. PIE is responsible for reviewing and evaluate guarantee applications; including checking to ensure the adequacy of safeguard documents of PFIs guarantee proposals for IE’s subprojects. During subproject implementation, together with PMB, PIE will carry out monitoring on safeguard compliance of PFIs and IEs in accordance to the national requirements and Bank’s safeguard policies. Selected PFIs will be responsible to implement the credit line component and have full responsibility for the EE lending process and approvals, following the agreed OM and bear all associated credit risks. Each PFI will form a Project Implementation Unit (PIU) with dedicated teams, supported by technical, safeguard and procurement experts. The PIU will implement the sub-lending activities and act as the PFI’s focal point to interact with the Bank, MOIT, MOF and other stakeholders. The PIU is also responsible for primary screening for eligibility of the subprojects in accordance with the requirements in the ESMF However, among potential PFIs, with insufficient institutional capacity, they are required to recruit and train the environment and social safeguard specialists making sure that safeguard requirements under the subprojects are met by the IEs and ESCOs. PFIs are responsible for appraisal and evaluation of subprojects including safeguards aspects and bear all associated risks regarding the loans to IEs. The PFIs will supervise/monitor all subloansincluding compliance with the project ESMF to ensure they are implemented according to Vietnamese and Bank requirements and guidelines, and provide periodic reports including fiduciary and safeguards reports to MOIT, MOF, PIE and the Bank. Independent auditors will be selected to conduct annual project audit on PFIs and IEs performance. A detailed project OM, covering technical, fiduciary, safeguards and management requirements and procedures will be prepared. The ESMF will be incorporated in the OM. The OM will define the detailed eligibility criteria for sub-projects. Industrial Enterprises will approach participating banks with subprojects for which all requisite approvals have been secured. The participating industrial enterprises (IEs) will be accountable for implementing safeguard requirements of specified activities under VSUEE in line with the requirements of governmental regulations, World Bank safeguard policies, and the ESMF. The responsibility of PMB, PFIs, IEs as well as other stakeholders for ESMF implementation is described in below figure and the Error! Reference source not found.. 50 Figure 6. Implementation organization structure of VSUEE Table 7. Stakeholders’ responsibilities for ESMF implementation Community/agencies Responsibilities Ministry of Industry and - All state management functions for the energy sector, including Trade (MOIT) EE. - Supervising and monitoring the implementation of the EE and Energy Conservation law and related regulations. - Overall supervision of project implementation, coordination with line ministries; - Enable the PMB to carry out all necessary work required for the successful implementation of VSUEE; - Where required, provide the required reviews and approvals in a timely manner; - Participate in WB supervision/evaluation missions; - Assist the PMB in solving problems which might occur during implementation; - Coordinate with other line ministries for project restructuring, if needed. - Appointment of Professional Program Implementing entity (PIE). - Supervising PIE’s activities. Project Management Board - Responsible for day-today overall management and coordination (PMB) under MOIT of VSUEE, - Hire consultant to carry out safeguard capacity building for PFIs - Monitoring the safeguard implementation of PFIs and IEs - Review safeguard monitoring reports submitted to the PMB by PFIs, IEs; - Reporting to MOIT and the WB on overall safeguard performance of VSUEE. - Facilitate required TA and capacity building activities. Ministry of Finance (MOF) - Represent the Socialist Republic of Vietnam in signing the Loan Agreement with the Bank. 51 Community/agencies Responsibilities World Bank - Conduct project safeguard due diligent and provide guidance, capacity to the PMB/PFIs in project implementation including safeguard execution. - Review and clear the TOR for category A subprojects - Conduct prior review and provide clearance of safeguard documents for all category A and selected category B subprojects. Program Implementing - To be appointed by the MoIT to manage the Risk Sharing Facility Entity (PIE) (such as a bank or existing guarantee agency); - Review and evaluate guarantee applications; including checking to ensure the adequacy of safeguards documents of PFIs guarantee proposals for IE’s subprojects. - Monitoring the safeguard implementation of PFIs and IEs - Underwrite and issue guarantees; - Adjust guarantee terms based on market feedback, within pre- approved limits; - Actively monitor and manage risk exposures and capital adequacy; - Verify guarantee calls and making payments to PFIs; - Coordinate with PFIs; and as necessary, relevant government agencies on loss recovery efforts; - Participate in marketing efforts for the Facility; Participating Finance - Each PFI will set up one Project Implementing Unit (PIU) and Institution (PFIs) assign one environmental and social designated staff responsible for safeguard evaluation and monitoring of subproject during the implementation. - PIU is required to recruit and train the environment and social safeguard specialists as early as possible in early years of the project to make sure that the environmental staff of PFIs meets the ESMF. - Screening, reviewing and verify the proposed subproject and ensure that subproject owner carry out appropriate EA for the subproject. Before approving the subproject, the PFI verifies that the subproject meets the national environmental requirements and is consistent with WB safeguard policies - Monitoring the implementation of environment and safety compliance by contractor/equipment supplier during implementation and during 1st year of operation by IEs - Report on implementation including environmental compliance to PIE and PMB for review Industrial Enterprises (IEs) - Preparing appropriate environmental documents required by Vietnamese law and WB - Obtain approval and clearance of the safeguard document in line with the national regulation and the WB’s safeguard policies - Carrying out mitigation measures to mitigate impacts as specified in approved environmental safeguard documents - Internal monitoring the implementation of mitigation measures by contractors - Report on sub-project environmental compliance to PFIs Environmental Consultant - During the preparation period, the EC is hired by IEs as necessary (EC) to prepare the Environmental Monitoring Reports as required by the sub-project. - For all the subproject determined as category A subproject, the environmental documents should be prepared by competent firms. 52 Community/agencies Responsibilities - The TOR for consultant prepare the category A subproject has to be submitted to the Bank for prior review - During the operation period, the IEs shall hire consultant to conduct internal monitoring as described in the approved/cleared EA documents. Contractor - Responsible for carrying out mitigation measures and self- monitoring during construction. It is required that the contractor get all permissions for construction (waste disposal, traffic control and diversion, excavation, labor safety, etc. before civil works) following current regulations. Construction Supervision - The CSC will be responsible for routine supervising and Consultant (CSC) monitoring all construction activities and for ensuring that Contractors comply with the requirements of the contracts and the EMP/ECOP. - Assists IE in reporting and maintaining close coordination with the local community. Local authorities including - Approving environmental reports (EIA/EPP) and carry out DONRE environmental monitoring as mandated by GoV regulations. Local communities - According to Vietnamese practice, the community has the right and responsibility to routinely monitor environmental performance during construction to ensure that their rights and safety are adequately protected and that the mitigation measures are effectively implemented by contractors and the IA. If unexpected problems occur, they will report to the CSC/IE. - These organizations could be a bridge between the PPC/DPC, communities, contractors, and the PMB by assisting in community Social organizations, monitoring. NGOs and civil society - Mobilizing communities' participation in the subproject, providing groups training to communities. - Participating in solving environmental problems, if any. VI.2. Incorporation of ESMF into Project Operational Manual It is imperative to look at Project Operational Manual (POM) with frameworks. The POM should have sections on environmental issues/procedures. These sections should provide links to: (i) subproject screening; (ii) appropriate mitigation actions and/or checklists; (iii) practical pre-tested safeguard forms used at field subproject level; (iv) development of supplemental tools/guidance; (v) details on how monitoring and evaluation for safeguards will be undertaken; and (vi) definition and role of third party auditing. The ESMF requirements will be applied for all subprojects under the guarantee period. VII. CAPACITY BUILDING, TRAINING AND TECHNICAL ASSISSTANCE VII.1. Institutional Capacity Assessment The potential PFIs include Vietcombank, ACB, TP Bank, LienVietPostBank, MB Bank, VietinBank, BIDV, Techcombank, SH Bank and HD Bank. The knowledge and experience of key stakeholders of safeguard implementation i.e. IEs, PFIs and MOIT are considered limited. The MOIT has engaged in several WB’s funded project. However, it is unlikely that the safeguard staff assigned for previous project could participated in the VSUEE project. The interested PFIs include BIDV, SHB, Vietinbank, 53 Vietcombank, and Techcombank. All those banks are currently participating Renewable Energy Development Project funded by the Bank. Two PFIs (BIDV and Vietinbank) have participated in Rural Finance 3 Project (RF3). In BIDV, there is an Environmental Division equipped with 03 staffs with environmental background and are familiar with WB’s safeguard policies explicitly to apply in the agricultural subprojects. Still, other potential PFIs have not experienced with the WB’s safeguard policies. Although the environmental management system of the VSUEE and VEEIE is similar; however, the capacity building on safeguard under original VEEIE has not yet been conducted. IEs have almost no experience with those policies. Close guidance and tailored training program must be developed and implemented to enhance capacity of those stakeholders in performing the safeguard policies. During the Project implementation, each PFIs will assign one competent staff to be responsible for environmental and social safeguard implementation. In addition, the Consultants will be possibly hired by the PMB to carry out capacity building for PIE, PFIs environmental and social staffs and IEs on safeguard implementation. VII.2. Training Given that most of the key mitigation measures are good engineering practices, the safeguard training should focus on increasing knowledge on (a) safeguard policy and procedures to implement the safeguard instruments (EMP/ESMF) designed for the Project and subprojects (b) specific training on supervision and monitoring Contractor and EC on environmental protection performance, including forms and reporting process, and (c) general knowledge on good construction practices for mitigating potential impacts on local environment and safety aspects.Based on actual demands in ESMF implementation, a capacity building and training program for relevant agencies is established as shown in Error! Reference source not found. below. The cost for capacity building program is included in cost for safeguard implementation. Table 8.Proposed programs on capacity building on environmental management Training content Subject to be No of Training Organization Budget trained trainees time unit Training on PMB staffs; 200 In sub- PMB in A part of safeguard policy Environmental project’s coordination with environmental and procedures, consultancy, IEs, preparation Environmental consultant the safeguard PFIs stage. Consultant contract implementation VII.3. Technical Assistance Given the number of the subprojects and its nature/locations, it is anticipated that at least 2 safeguard training courses should be provided during the first two years of the Project implementation. The training for safeguard implementation for The training should focus on the Vietnamese environmental regulations and WB’s safeguard policy, and procedures, specifically on the screening and appraisal of environmental document during the subproject preparation; knowledge, policies, and procedures related to environment issues could be completed before construction start; monitoring the environmental compliance of IEs during subproject implementation. All key staff responsible for the activities should participate in the training. The supervision of contractor training should be conducted at least 1 month before the construction. The key participants should include PIE, PFI environmental staff, IEs, PMB 54 and its environmental consultant, and representatives from local agencies, local communities, and/or mass organizations, responsible for supervision of contractor. VIII. ESMF IMPLEMENTATION BUDGET Table 9. Estimated budget and financial source for ESMF implementation Activities Financial Source PMB’s capacity building for PFIs, IE VSUEE component 2: TA PMB monitoring on PIE, PFIs, IEs’ safeguard performance Safeguard designated staff under PIU of each PFIs PFI Development of subproject environmental IEs documents Implementation of mitigation measures As part of construction/installation contracts Internal monitoring by CSC, IEs during VSUEE component 2: TA subproject implementation IX. GRIEVANCE AND REDRESS MECHANISM This grievance and redress mechanism mentioned bellow is applied not only this framework but also in RPF and EMPF. The IE shall establish a complaints and grievances mechanism to receive and resolve the resettlement issues of project-affected communities/person. The mechanism shall be based on principles as (i) proportionality; (ii) accessibility; (iii) transparency; and (iv) cultural appropriateness as follows. (i) Proportionality means scaling the mechanism to the project needs. In a project with low potential adverse impacts, simple and direct mechanisms for problem solving is preferred for addressing and resolving complaints such as public meetings, telephone hotline, existing media, brochures, and a community liaison officer; (ii) Accessibility means establishing a mechanism which is clear, free of charge and easy to access for all segments of the affected communities and other potential stakeholders. The best way of achieving this is to localize the point of contact. This is valid both for the owner and its construction contractor. Related to that, staff with the appropriate skills, training and familiarity with community liaison work should be employed in the field as quickly as possible. Accessibility enables owner to build more constructive relationships with local communities. This will also help intervene quickly in any dispute or environmental issues and in an appropriate manner because maintaining a regular presence of a familiar face in the field greatly helps engendering trust and thus, constructive and closer relations; (iii) Transparency means that members of the affected communities know who is responsible for handling the complaints and communicating the outcomes of corrective actions to be taken about the complaints. This will be helpful in that people have confidence in the grievance mechanism to be used both by project owner and the construction contractor; (iv) Culturally appropriateness means having cultural sensitiveness while designing and executing the grievance mechanism. 55 To implement these principles, the IE will be accessible to its stakeholders and should respond to their complaints in the shortest possible time. The critical issue for responding to complaints is to ensure that all received complaints are recorded; relevant division of the IE is responsive to complaints; and that corrective actions are mutually acceptable. Thus, responses to complaints will be satisfactory for both parties, actions are followed up, and the complainants will be informed about the outcomes of the corrective actions. In case, there is no agreement between the parties and the project affected communities/person, complaints and grievances shall be submitted to local and state government justice system with responsibilities as follows. First level - At Commune People’s Committee (CPC) An aggrieved affected household may bring his/her complaint before the receiving department of a Commune People’s Committee to be received and guided for necessary procedures. The CPC will meet personally with the aggrieved affected household and will have 5 days following the lodging of the complaint to resolve it (Note: in remote and mountainous areas, the complaint should be resolved within 15 days. The CPC secretariat is responsible for documenting and keeping file of all complaints that it handles. Upon issuance of decision of CPC, the complainants can make an appeal within 30 days. If the second decision has been issued and the household is still not satisfied with the decision, the household can elevate his/her complaint to the DPC. Second level - At District People’s Committee (DPC) Upon receipt of a complaint from a household, the DPC will have 15 days (or 45 days in remote and mountainous areas) following the lodging of the complaint to resolve the case. The DPC is responsible for documenting and keeping file of all complaints that it handles. Upon issuance of decision of DPC, the complainants can make an appeal within 30 days. If the second decision has been issued and the household is still not satisfied with the decision, the household can elevate his/her complaint to the PPC. Third level - At Provincial People’s Committee (PPC) Upon receipt of complaint from the household, the PPC will have 30 days (or 45 days in remote and mountainous areas) following the lodging of the complaint to resolve the case. The PPC is responsible for documenting and keeping file of all complaints. Upon issuance of decision of PPC, the household can make an appeal within 45 days. If the second decision has been issued and the household is still not satisfied with the decision, the household can elevate his/her complaint to the court within 45 days. Final level - Court of Law Decides Should the complainant file his/her case to the court and the court rule in favor of the complainant, then provincial government agency will have to increase the compensation at a level to be decided by the court. In case the court will rule in favor of PPC, the complainant will have to receive compensation as described in the approved compensation plan and comply with all requirements of land clearance. 56 To assure that the mechanism described above is pragmatic and acceptable to affected communities/persons, consultations with local authorities and affected communities about this mechanism is in need, particularly consultations with vulnerable groups. Complaints and Grievances from Affected Person (AP) Verbally or in writing Community Representative (CR) Verbally or in writing Registration by the IE Discuss among (AP)/(CR)/ (The IE and /or Contractor) AP may resort to No the justice system Agreement obtained? Yes Action as greed Close out Figure 7. Basic Complaints and Grievances Mechanism of the Project X. ESMF CONSULTATION AND DISCLOSURE During the preparation of the project safeguard instruments, a consultation workshop on the ESMF,RPF, and EMDF was held on May 29, 2018. One week prior to the workshop, invitations and draft ESMFs were sent to stakeholders including representatives from the Ministry of Industry and Trade (MOIT), Non-governmental organizations (Pan Nature), State Bank of Vietnam, MONRE, Petroleum of Vietnam, Electricity of Vietnam, Vietnam Steel and Cement corporation and 6 potential PFIs (Vietnam Prosperity Joint-Stock Commercial Bank, Sai Gon –Hanoi Joint Stock Commercial Bank, Vietnam Joint Stock Commercial Bank for Industry and Trade, Ho Chi Minh Development Joint Stock Commercial Bank, Vietnam Bank for Agriculture and Rural Development, Vietnam Technological and Commercial Joint-stock Bank). In addition, the Vietnamese versions of the ESMF, RPF, and EMDF were published at the Ministry of Industry and Trade's website on May 23, 2018 before the consultation workshop. 57 Public consultation took place at the meeting room of MOIT at No.54 Hai Ba Trung street, Hanoi, Vietnam Participation included PMU staffs, representatives from the MOITs, local consultants, Non- governmental organizations, State Bank of Vietnam, MONRE, PVN, and potential PFIs participants. The consultation workshop aims to introduce the ESMF, RPF, EMDF and to identify the potential social and environmental impacts of the project, and on that basis, inform the design/intervention strategy as well as develop appropriate mitigation measures. The draft ESMF, RPF, and EMDF were sent to the relevant Ministries in the project area for additional comments before finalization. The participants expressed agreement with the ESMF, RPF, and EMDF; however, there were some comments and concerns presented during the workshop. These comments have been fully addressed in the revised ESMF, RPF, and EMDF. The results of the consultation workshop focused on the following points: Comments Feedback of PMB and Consultant - The frameworks (project classification, - After discussion with World Bank and occupations, ethnic minority, resettlement, Department of Energy Saving and Sustainable compensation etc.) should be assessed Development about scope of works, the more detailed and more easily access to consultant will revised more detailed; conduct in fact; - The scope of these frameworks is for potential - The project should clarify the scope of these subprojects. These subprojects will be frameworks (available projects or potential screened pursuant to Vietnamese regulations projects, inside or outside of plants’ and World Bank’s safeguard policies. boundaries, environment safeguard and Procedures for eligibility screening of social assessment etc.); subprojects are shown in the Appendix of the frameworks. Moreover, the environmental and social assessment will follow Vietnamese regulations and World Bank’s Guidelines. - The policy frameworks were prepared for confirmation by PFIs, so they must arrange competence staffs sufficiently to implement. These staffs will be trained for capacity building. - The policy frameworks and guidance will be adjusted so that easily access to conduct in fact. - The project should update new government - New environmental regulations have been regulations on environmental protection and updated to the frameworks; clean technologies; - PMB should negotiate with WB about - PMB found that this GCF project has very harmonizes interest rate. PFIs also expected favorable support and not much content for to reduce interest rates, to offset the costs. negotiating interest rates. - It is necessary to improve capacity for - The VSUEE project is leveraging the appraisal staffs of PFIs attractiveness of the VEEIE project and the Interest rate is still under the negotiation process to find a solution for interest rates. The World Bank is also considering a mechanism to reduce the risk for commercial banks when the exchange rate changes. - Clarify the rules and procedures when a - To reduce damages as mentioned from the default occurs. In this case, what is the guaranteed projects, PFIs are required to standard for being guaranteed with loans? strengthen their responsibility for the verification and supervision throughout the project 58 Comments Feedback of PMB and Consultant implementation process. Such as the problem - Please clarify and consider which arises would be found out in early stage and mechanism to overcome or compensate for then both the banks and the borrowing IEs will damage in this case for the PFIs. have to agree on a corrective plan. - World Bank and PMB will give time for PFI and IEs to remedy. If after a period of time that no remedial action has been taken or if no corrective action has been taken, the funding side must take action. In fact, the risks will fall into the banks more than the business. So banking constraint on the responsibility of reviewing and evaluating projects to make loan decisions. - On the criteria for guarantee payment, this issue is not yet decided; it will be exchanged and clarified with the World Bank. The final Vietnamese version is disclosed at the MOIT’s and VEEIE’s website on October 23, 2020 and the English version will be disclosed at the World Bank's website. Public consultation and information disclosure of the subproject safeguard instruments under the VSUEE project will be conducted in compliance with the ESMF, RPF, EMDF, government regulations, World Bank safeguard policies, and the Bank’s policy on access to information at the sub project level during project implementation. XI. ANNEXES The following annexes have been prepared to assist IEs and the PFI in the implementation of the VSUEE Environmental Safeguards Framework. A description of each Annex follows: - Annex 1: Environmental and Social Safeguard Checklist - Annex 2: Environmental and Social Impact Screening - Annex 3: Guidance for Preparation of an Environmental Management Plan - Annex 4: Environmental Codes of Practice (ECOPs). - Annex 5: PCB Management Procedure - Annex 6: Minutes of Public consultation - Annex 7: WBG EHS Guidelines and relevant Industry Guidelines. 59 Annex 1. Environmental and social safeguards checklist With all sub-project/activities under Component 1 of VSUEE project, the PFI environmental staff/consultant will do screening to determine the eligibility of subprojects. The PFI environmental staff or/and consultant will complete the checklist. The VSUEE will finance the subproject which By indicating “Yes” to any safeguard policy other than OP4.01,OP/BP 4.1, OP/BP4.10 and OP/BP4.12 the sub-project will be considered. Note: if any policy is triggered by the sub-project, the project’s owner must indicate the severity of the potential impact as instructed in the Table below. Safeguard policies Questions Policies triggered Environmental Does the project have the No Yes Assessment potential for adverse If Yes, indicate here the potential severity environmental or social risks OP/BP 4.01 for the impact and proposed project and impacts in its area of design elements that will help prevent influence potential adverse impacts Natural Habitats The Bank does not finance No Yes projects that degrade or OP/BP 4.04 If Yes, indicate here either proposed convert critical habitats alternative sites(s) or if no alternative (protected areas or sites sites are available proposed project important for biodiversity). Do design elements that will help prevent the project activities have the potential adverse impacts potential to cause significant conversion (loss) or degradation of non-critical natural habitats? (The loss can occur either directly e.g. construction activities) or indirectly (through human activities induced by the project) Pest management Are any pesticides or No Yes procurement of pesticide OP 4.09 If Yes, indicate here proposed project equipment being financed by design elements (integrated Pest the project management) that will help prevent potential adverse impacts Does the project introduce No new pest management practices or expand or alter existing pest management practices Are there other project No activates that may lead to substantially increased pesticide use Does the project include the No manufacture or disposal of 60 Safeguard policies Questions Policies triggered environmentally significant quantities of pest control products? Forests Does the project have the No Yes potential to have an impact on OP/BP 4.36 If Yes, indicate here proposed project the health and quality of design elements that will help prevent forests or the rights and potential adverse impacts welfare of people and their level of dependence upon or interaction with forests? Does the project aim to bring No Yes about changes in the If Yes, indicate whether the management management, protection, or will ensure sustainability of the forest utilization of natural forests or resources plantations Safety of Dams Are any project activities No Yes related to the construction for a large-scale dam? Physical Cultural Would project activities likely No Yes Resources adversely affect physical If Yes, indicate here proposed project cultural resources? OP/BP 4.11 design elements that will help prevent These could be temples, burial potential adverse impacts sites, or archeological sites Projects in Are project activities being No Yes international conducted in international If Yes, please contact to the Bank for Waterways waterway further information OP/BP 7.50 Projects on Disputed Is any of project activities is No Yes Area being conducted in a disputed If Yes, please contact to the Bank for area OP/BP 4.37 further information Involuntary Is there any possibility that Yes Resettlement project activities would If Yes, refer to Resettlement Plan displace persons Framework involuntarily? Please note that loss of land or other assets caused by: (i) relocation or loss of shelter; (ii) loss access to assets in protected areas resulting in adverse impacts on livelihoods; (iii) loss of income sources or means of livelihood, whether or not the affected people must move to another location. If Land is acquired and no person is involuntarily displaced, the 61 Safeguard policies Questions Policies triggered policy is not triggered. Indigenous peoples Would the project likely have Yes (ethnic minorities) negative impacts on ethnic If Yes, refer to Ethnic Minority Plan minorities or have the Framework potential to bring positive benefits to ethnic minorities Date Screened by Verified by (full name and signature) (Sign and stamp by the PFIs director) 62 Annex 2. Subproject Environmental and Social Impact Screening Checklist This subproject screening checklist is intended for the use of PFIs so that they can determine the appropriate type of safeguards documentation that will be required by the World Bank for the subproject, in conformance with the ESMF for the Project. The PFI is encouraged to send this checklist to the Task Team Leader (TTL) to ensure that the World Bank agrees with the results of the screening prior to the Borrower’s hiring of consultants to prepare safeguard documents. NAME OF PROJECT Subproject Name: Subproject Location: (e.g. region, district, etc.) Type of activity: (e.g. new construction, rehabilitation, periodic maintenance) Subproject Owner and Address: Environmental Category of the Main Project: (e.g., A or B) 1. Eligibility Screening Eligibility screening is conducted to determine if a subproject is eligible for funding under the project. To avoid significant adverse environmental and social impacts, some projects may include criteria for ineligibility or have an ineligible activity list to screen out subprojects. .These criteria or the ineligible list are included in the ESMF and during the project implementation subprojects are screened against these criteria. The following subprojects will not be eligible for funding under the project. ✓ The subproject that involve the significant conversion or degradation1of critical natural habitats2. ✓ The subproject that would involve significant conversion or degradation of critical forest areas3. ✓ The subproject that contravenes applicable international environmental agreements. ✓ The subproject that would be located in a physical cultural resources site recognized at the national or provincial level. ✓ environment and social impacts so complex and adverse that are beyond the capacity of the IEs to manage The subprojects triggering OP/BP 7.50; OP/BP 7.60; OP/BP4.04, OP/BP 4.37; OP.BP 4.09 has to be prior consulted with the WB. Please note that the owner of the subproject is expected to comply with all national legislation and standards and with obligations (standards, restrictions or similar) of the country under international conventions, treaties, agreements and protocols. 1, 2, 3 – Consult the Bank’s external safeguards website at http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/EXTPOLICIES/EXTSAFEPOL/0,,menuPK:584441 ~pagePK:64168427~piPK:64168435~theSitePK:584435,00.html for the definitions of “significant conversion”, “critical natural habitats”, and critical forests” 63 2. Environmental and Social Impact Screening The impact environmental screening of each proposed subproject is to determine the appropriate extent and type of Environmental Assessment. The outcome of this screening is used to classify the subprojects into one of three categories, depending on the type, location, sensitivity, and scale of the subproject and the nature and magnitude of its potential environmental impacts (OP 4.01, paragraph 8). (a) Category A: A proposed project is classified as Category A if it is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. (b) Category B: A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas - including wetlands, forests, grasslands, and other natural habitats - are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measures can be designed more readily than for Category A projects. (c) Category C: A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EA action is required for a Category C project. 2.1 Category A Screening Criteria The following set of screening questions is intended to determine if the subproject has the potential to cause significant adverse impacts (i.e., is the subproject a Category A). Table 1.Category A Screening Criteria Screening Questions Yes No Remarks 1. Does the subproject have the potential to cause significant adverse impacts to natural or critical natural habitats? Leads to loss or degradation of sensitive Indicate location and type of natural Natural Habitats defined as: land and water habitat and the kind of impacts that areas where (i) the ecosystems' bio-logical could occur, e.g., loss of habitat and communities are formed largely by native how much, loss of ecosystem plant and animal species, and (ii) human services, effects on the quality of the activity has not essentially modified the area's habitat. State why these impacts are primary ecological functions. Important or are not significant. natural habitats may occur in tropical humid, Note that the World Bank does not dry, and cloud forests; temperate and boreal support projects involving the forests; Mediterranean-type shrub lands; significant conversion of natural natural arid and semi-arid lands; mangrove habitats unless there are no feasible swamps, coastal marshes, and other wetlands; alternatives for the project and its estuaries; sea grass beds; coral reefs; siting, and comprehensive analysis freshwater lakes and rivers; alpine and sub demonstrates that overall benefits alpine environments, including herb fields, from the project substantially grasslands, and paramos; and tropical and outweigh the environmental costs. temperate grasslands. Leads to loss or degradation of Critical natural Note that the World Bank cannot habitat, i.e., habitat that is legally protected, fund any projects that result in 64 officially proposed for protection, or significant conversion or unprotected but of known high conservation degradation of critical natural value. Critical habitats include existing habitats. protected areas and areas officially proposed Indicate location and type of critical by governments as protected areas (e.g., natural habitat and state why they reserves that meet the criteria of the World are or are not significant. Conservation Union [IUCN] classifications, areas initially recognized as protected by traditional local communities (e.g., sacred groves), and sites that maintain conditions vital for the viability of these protected areas. Sites may include areas with known high suitability for bio-diversity conservation; and sites that are critical for rare, vulnerable, migratory, or endangered species. 2. Does the subproject have the potential to cause significant adverse impacts to physical cultural resources? Leads to loss or degradation of physical Describe location and type of cultural resources, defined as movable or cultural resources and the kind of immovable objects, sites, structures, groups of impacts that could occur. State the structures, and natural features and landscapes level of protection (local, provincial, that have archaeological, paleontological, national or international).Are any of historical, architectural, religious, aesthetic, or these sites considered important to other cultural significance. They may be preserve in situ, meaning that the located in urban or rural settings, above or resources should not be removed below ground, or under water. Their cultural from their current location? interest may be at the local, provincial or State why impacts are or are not national level, or within the international significant. community. Potentially results in a contravention of Describe any impacts that might national legislation, or national obligations contravene national or international under relevant international environmental legislation concerning cultural treaties and agreements, including the resources. If considered not UNESCO World Heritage Convention or significant, explain why. affect sites with known and important tourism or scientific interest. 3. Does the subproject have the potential to cause significant adverse impacts on the lands and related natural resources used by ethnic minorities? Potentially result in impacts on lands or Describe the type and extent of territories that are traditionally owned, or impacts and the significance of customarily used or occupied, and where alterations to the resources of the access to natural resources is vital to the affected minorities. sustainability of cultures and livelihoods of Note that an Ethnic Minority minority peoples. Potentially impact the Development Plan will also be cultural and spiritual values attributed to such required in accordance with World lands and resources or impact natural Bank OP 4.10. resources management and the long-term sustainability of the affected resources. 4. Does the subproject have the potential to cause significant adverse effects to populations 65 subject to physical displacement? Leads to physical displacement of populations Indicate the numbers of households dependent upon lands or use of specific use of affected and the resources that will resources that would be difficult to replace or be difficult to replace in order to restore? Otherwise lead to difficult issues in achieve livelihood restoration. the ability of the subproject to restore Note that a Resettlement Action livelihoods? Plan will need to be prepared in accordance with World Bank OP 4.12. 5. Does the subproject entail the construction of a large dam? Does the subproject require construction of a Describe the issues and note the dam that is: requirements of OP 4.37 concerning • 15 meters or more in height the appointment of an Independent Panel of Experts. • between 10 and 15 meters in height with special design complexities--for example, an unusually large flood-handling requirement, location in a zone of high seismicity, foundations that are complex and difficult to prepare, or retention of toxic materials. • under 10 meters in height but expected to become large dams during the operation of the subproject? Does the operation of the subproject rely on If yes, this may not always mean the performance of: that a Category A EIA is required, • an existing dam or a dam under but special care must be taken, construction (DUC); because the World Bank has specific requirements to ensure the safety of • power stations or water supply systems the performance of the existing dam that draw directly from a reservoir or dam under construction. World controlled by an existing dam or a DUC; Bank requires inspection and • diversion dams or hydraulic structures evaluation of dam or DUC, its downstream from an existing dam or a performance and operation and DUC, where failure of the upstream dam maintenance procedures, and could cause extensive damage to or failure recommendations for any remedial of the new World Bank-financed structure work or safety-related measures; and irrigation or water supply projects that previous assessments can also will depend on the storage and operation evaluated. of an existing dam or a DUC for their supply of water and could not function if the dam failed. 6. Does the subproject entail the procurement or use of pesticides? Do the formulations of the products fall in If yes, this may not always mean World Health Organization classes IA and IB, that a Category A EIA is required, or are there formulations of products in Class but special care must be taken. The II?, World Bank will not finance such products, if (a) the country lacks restrictions on their distribution and 66 use; or (b) they are likely to be used by, or be accessible to, lay personnel, farmers, or others without training, equipment, and facilities to handle, store, and apply these products properly. 7. Does the subproject have the potential to cause irreversible impacts or impacts that are not easily mitigated? Leads to loss of aquifer recharge areas, affects Name the water bodies affected and the quality of water storage and catchments describe magnitude of impacts. responsible for potable water supply to major population centers. Leads to any impacts such that the duration of Describe any impacts considered to the impacts is relatively permanent, affects an be permanent, affecting a large extensive geographic area or impacts have a geographic area (define) and high high intensity. intensity impacts. 8. Does the subproject have the potential to result in a broad diversity of significant adverse impacts? Multiple sites in different locations affected Identify and describe all affected each of which could cause significant losses locations. of habitat, resources, land or deterioration of the quality of resources. Potential, significant adverse impacts likely to Identify and describe the types of extend beyond the sites or facilities for the impacts extending beyond the sites physical works. or facilities of the physical works. Transboundary impacts (other than minor Describe the magnitude of the alterations to an ongoing waterway activity). transboundary impacts. Need for new access roads, tunnels, canals, Describe all activities that are new power transmission corridors, pipelines, or that are required for the main borrow and disposal areas in currently activity to function. undeveloped areas. Interruption of migratory patterns of wildlife, Describe how migrations of people animal herds or pastoralists, nomads or semi- and animals are affected. nomads. 9. Is the subproject unprecedented? Unprecedented at the national level? Describe why and what aspects are unprecedented. Unprecedented at the provincial level? Describe why and what aspects are unprecedented. 10. Is the project highly contentious and likely to attract the attention of NGOs or civil society nationally or internationally? Considered risky or likely to have highly Describe perceived risks and controversial aspects. controversial aspects Likely to lead to protests or people wanting to Describe the reasons that subproject 67 demonstrate or prevent its construction. is highly unwelcome. If the answer is yes to any of the above screening questions, the subproject is likely to be considered a Category A and an EIA meeting World Bank standards, including an EMP, will be required. The PMU is advised to discuss the results of this screening with the TTL, before starting environmental and social studies of the subproject. There are some differences in the World Bank and the government requirements for a World Bank category A project in terms of preparation of TORs, consultation, content and structures of the EIA report. Two separate EIAs to satisfy the World Bank and the government requirements will be needed. Note: If the main project has not been categorized as a Category A, then any subproject where the answer is “yes” to the screening questions cannot be done. 2.2. Category C Screening Criteria The following set of screening questions is intended to determine if the subproject has the potential to cause minimal or no adverse impacts (i.e., is a Category C). Table 2.Category C Screening Criteria Screening Questions Y N Remarks 1. Subproject activities are limited to training, technical Describe activities. assistance and capacity building. 2. Training and capacity building do not require use of Support this chemicals, biological agents, pesticides. statement. 3. There is no infrastructure to be demolished or built. Support this statement. 4. There are no interventions that would affect land, water, Support this air, flora, fauna or humans. statement. 5. If scientific research is being performed, the research is If yes, discuss with of such a nature that no hazardous or toxic wastes are the World Bank created and the research does not involve recombinant environmental DNA or other research that would create dangerous specialists. agents should they be released from contained, laboratory conditions 2.3 Category B Screening Many of the subprojects to be proposed will be Category B. They may have similar types of impacts to Category A, but the impacts are not irreversible and they are less extensive, less intensive, less adverse, more easily mitigated, not likely controversial and not unprecedented. After the screening for Category A and Category C is applied and if the conclusion is reached that the subproject is not A and is not C, then the subproject should be categorized as B. Category B also requires an EIA or other EA instrument in accordance with the World Bank OP 4.01.The PMU will apply the criteria of the Vietnamese regulation to determine whether to prepare an EIA or an EPC in according with the Law on Environmental Protection and associated EA Decree and Circular. In most cases, an EMP consistent with World Bank policy will be required (see Annex 4). For other case, a simplified EMP or an ECOP should suffice. 68 The issues that may need to be addressed in a Category B safeguards document are variable and will depend upon the type of subproject, its location and surrounding land uses and the kinds of construction and operational procedures that will be used. 69 2.4 Environmental and Social Impact Checklist Table 3 presents a checklist, the purpose of which is to assist the Borrower in preparing the EA instrument, including the EMP. Table 3.Potential Environmental and Social Impacts to be Addressed Does the subproject entail No Low Medi High Not Remarks these environmental um know impacts? n 1. Encroachment on historical/cultural areas 2. Encroachment on an ecosystem Describe and (e.g. natural habitat sensitive or briefly assess protected area, national park, impact's level nature reserve etc....) 3. Disfiguration of landscape and increased waste generation 4. Removal of vegetation cover or cutting down of trees during clearance for construction 5. Change of surface water quality or Indicate how and water flows (e.g. Increase water when this occurs. turbidity due to run- off, waste water from camp sites and erosion, and construction waste) or long- term. 6. Increased dust level or add Indicate how and pollutants to the air during when this occurs construction 7. Increased noise and/or vibration Indicate how and when this occurs 8. Resettlement of households? If yes, how many households? 9. Use of resettlement site that is Briefly describe environmentally and/or culturally the potential sensitive impacts 10. Risk of disease dissemination from Note estimated construction workers to the local number of workers peoples (and vice versa)? to be hired for project construction in the commune/district and what kind of diseases they might introduce or acquire. 11. Potential for conflict between construction workers and local peoples (and vice versa)? 12. Use of explosive and hazardous chemicals 13. Use of sites where, in the past, 70 there were accidents incurred due to landmines or explosive materials remaining from the war 14. Construction that could cause disturbance to the transportation, traffic routes, or waterway transport? 15. Construction that could cause any damage to the existing local roads, bridges or other rural infrastructures? 16. Soil excavation during subproject's construction so as to cause soil erosion 17. Need to open new, temporary or Estimate number permanent, access roads? of and length of temporary or permanent access roads and their locations 18. Separation or fragmentation of Describe how. habitats of flora and fauna? 19. Long-term impacts on air quality 20. Accident risks for workers and community during construction phase 21. Use of hazardous or toxic materials and generation of hazardous wastes 22. Risks to safety and human health Describe how. Does the subproject entail land acquisition or restriction of access to resources? 23. Acquisition (temporarily or List land areas for permanently) of land (public or permanent and private) for its development temporary land acquisition, type of soils, duration and purpose of acquisition 24. Use land that is currently occupied or regularly used for productive purposes (e.g., gardening, farming, pasture, fishing locations, forests) 25.. Displacement of individuals, families or businesses 26. Temporary or permanent loss of crops, fruit trees or household infrastructure 27. Involuntary restriction of access by people to legally designated parks and protected areas If the answer to any of the questions 23-27 is “Yes”, please consult the ESMF; preparation of a Resettlement Plan (RP) is likely required. A. Are ethnic minority peoples present in the subproject area? 71 28. Ethnic minority groups are living within the boundaries of, or nearby, the subproject. 29. Members of these ethnic minority groups in the area potentially could benefit or be harmed from the project. If the answer to questions 28 or 29 is “Yes”, please consult the ESMF; and preparation of an Ethnic Minority Development Plan (EMDP is likely required. Does the subproject entail construction of or depend upon a dam? 30. Involve the construction of a See Table 1 for large dam? definition of a large dam. 31. Depend on water supplied Describe the from an existing dam or weir functional or a dam under construction? relationship between the subproject and the existing dam or a dam under construction. If the answer to question 30 or 31 is “Yes”, please consult the ESMF; a Dam Safety Report (DSR) will likely be required. Does the subproject entail procurement or use of pesticides? 32. What is the World Health See Table 1 for additional Organization’s classification information on pesticides. of the formulation of the To deal with this issue, specific pesticides to be used? one must know the types of pesticides proposed. If the answer to question 32 is yes, please consult the ESMF; a Pest Management Plan (PMP) will likely be required. 3. Next Steps Describe here the result of environmental and social screening and recommend what the IEs needs to do. Highly recommend that they submit the screening report for review regarding the categorization (i) Does the subproject eligible for financing/guaranteed? Please provide explanation. (ii) Determine the subproject category (iii) Determine the specific safeguards instruments to be prepared for the subproject Date Verified and Screened by Full name of PFI Staff 72 Annex 3. Guidance for preparation of an Environmental Management Plan 1. Introduction An Environmental Management Plan (EMP) is a part of the Environmental Assessment (EA) process in World Bank-financed projects. The procedures in OP 4.01, Annex C, which describes the EMP, are mandatory. The definition of an EMP is: “A project's environmental management plan (EMP) consists of the set of mitigation, monitoring, and institutional measures to be taken during implementation and operation to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels. The plan also includes the actions needed to implement these measures.” The EMP provides an essential link to different instruments in conjunction with EIAs for category A, B, and FI projects, or the ESMF when subprojects are not known in advance; the link between the impacts predicted and mitigation measures specified within an EIA and construction and operational activities. The EMP outlines the anticipated environmental impacts of projects, the measures to be undertaken to mitigate these impacts, responsibilities for mitigation, timescales, costs of mitigation, and sources of funding. Furthermore, EMP lays the framework for continued assessment of potential impacts through the application of monitoring and auditing and consideration of the institutional measures appropriate to accomplish the EMP. This guidance aims to provide a reference for preparing EMPs for a range of types and scales of development projects/subprojects in different biophysical, social, economic and governance contexts. This guidance identifies the policy framework for preparing EMPs for World Bank-financed activities, outlines the main components of EMPs, and discusses means to ensure that commitments within the EMP are carried through to implementation and operation. This guidance is not intended to replace any World Bank safeguards policy or government regulation. This guidance is directed at project implementing agencies including project PMUs, environmental impacts assessment consultants, environmental specialists, project proponents, financial institutions and other parties interested in or affected by EMP processes. 2. When an EMP is needed (Category A, B, FI) The government EIA regulation does not require project proponents to prepare a separate EMP but an Environmental Management and Monitoring Program (EMMP) as a part of an EIA. The EMMP includes project implementation phases, project activities, associated environmental impacts, mitigation measures, cost for mitigation measures, and timeline for implementation measures, implementation arrangement, and responsibility for supervision. The EMMP also includes a monitoring program for monitoring of waste emission, ambient environment quality, and other impacts caused by project. An EMMP is not specifically required for an environmental protection commitment (EPC), but a set mitigation measures, waste treatment facilities, and an environmental monitoring program are required. The World Bank’s Environmental management plan (EMP) is an instrument that details: a) all anticipated adverse environmental impacts (including those involving indigenous people or involuntary resettlement); b) the mitigation measures to be taken during the implementation and operation of a project to eliminate or offset adverse environmental impacts, or to reduce them to acceptable levels; c) monitoring objectives and type of monitoring with linkages to the impacts assessed in the EA report and the mitigation measures described in the EMP; d)the actions needed including institutional arrangements to implement these measures; e) 73 capacity development and training to support timely and effective implementation of environmental project components and mitigation measures; and f) implementation schedule and cost estimates for implementing the EMP, and g) integration of the EMP with project. In comparison with the government EMMP, components of EMP are expressed in more detail; include capacity building, and forging EMP integration into the project's overall planning, design, budget, and implementation. The EMP is an integral part of Category A EAs (irrespective of other instruments used). EAs for Category B projects may also result in an EMP. The EMP is a valuable tool to: i) define details of who, what, where and when environmental management and mitigation measures are to be implemented; ii) provide government agencies and their contractors, developers and other stakeholders better on-site environmental management control over the life of a project; iii) allow a proponent to ensure their contractors fulfill environmental obligations on their behalf, and; iv) demonstrate due diligence. In addition, the EMP is often required as part of tendering for projects. Typically, use of an EMP only applies to smaller projects not affecting environmentally sensitive areas, which present issues that are narrow in scope, well defined, and well understood. For small and very small subprojects with very limited and narrow environmental impacts, using simple general mitigation measures such as an environmental code of practice (ECOP) (see Annex 5 for such a kind of ECOP) alone should suffice for addressing environmental impacts. ECOP can also be used in conjunction with EMP for addressing general limited construction impacts. Examples of projects in the Vietnam portfolio that required EMPs for subprojects (with no World Bank EIA) are: Coastal Resources for Sustainable Development Projects, Rural Distribution Projects, Rural Distribution Project, Red Delta Rural Water Supply and Sanitation Project. Within these projects some subprojects requires only ECOPs. A project of the Human Development Sector, the School Readiness Promotion Project, only requires ECOPs. The EMP is a “living document” that should be focused on continual improvement and should be updated when there are changes in project design or emerging environmental issues. 3. Objectives of EMP The EMP outlines the mitigation, monitoring, and institutional measures to be taken during project implementation and operation to avoid or control adverse environmental impacts, and the actions needed to implement these measures. It provides the link between alternative mitigation measures evaluated and described within the EIA/EPC report, and ensuring that such measures are implemented. While project design should incorporate environmental sustainability to the extent possible, the EMP deals with environmental issues that cannot be avoided through design. Therefore, the objectives of an EMP should include: - Ensuring compliance with the applicable provincial, national, laws, regulations, standards, and guidelines - Ensuring that there is sufficient allocation of resources on the project budget for implementation of EMP-related activities - Ensuring that environmental risks associated with a project property managed - Responding to emerging and unforeseen environmental issues not identified in the project EIA - Providing feedback for continual improvement in environmental performance. 74 The EMP is a basis for negotiation and reaching agreement between the World Bank and Borrowers on a project’s key social and environmental performance. Its implementation becomes a legal obligation of the Borrower (in Loan Agreement) and contractors (in contracts). An EMP can be a site or project-specific plan developed to ensure that appropriate environmental management practices are followed during a project construction or operation phase. A project EMP is developed by the Borrower, while a site-specific EMP or a construction EMP is usually prepared by contractors, in accordance with requirements of bidding documents (to which it is good practice to attach the project EMP). This guidance covers project EMP. 4. Who Should Prepare an EMP? A project proponent retains primary responsibility for the environmental performance of its projects. As such, the proponent is responsible for ensuring the preparation and implementation of an acceptable project EMP whether for construction or operation. In most cases, during the project preparation, the World Bank would provide both the PMU and an EMP consultant with technical assistance for preparation of the EMP. During appraisal, the World Bank reviews the EMP with the Borrower, to assess the adequacy of the institutions responsible for environmental management, to ensure that the EMP is adequately budgeted, and to determine whether the mitigation measures are properly addressed in project design and economic analysis. During project implementation, subproject EMPs or ECOPs will be prepared in accordance with the guidelines and requires of the project ESMF. The project ESMF details and explains the role and necessity of preparing a subproject EMP during implementation. During a project construction and/or operation, implementation of a project or subproject EMP is often passed on to contractor by a contract specification or a requirement. While an EMP may be implemented by a contractor, the responsibility for implementing the conditions of approval of the project (i.e., the EIA needs to be approved by relevant authority as a condition for approval of the project) lies with the proponent. During project implementation, the World Bank bases supervision of the project’s environmental aspects on the findings and recommendations of the EA, including measures set out in the loan agreement, the EMP, and other project documents. For low-risk projects, the World Bank may conduct post review of subproject EMPs during implementation. 5. Components of EMP In order to achieve the above objectives, the generic scope of an EMP should include the following: - Definition of the environmental management objectives to be realized during the life of a project (i.e. pre-construction, construction, operation and/or decommissioning phases) in order to enhance benefits and minimize adverse environmental impacts. - Description of the detailed actions needed to achieve these objectives, including how they will be achieved, by whom, by when, with what resources, with what monitoring/verification, and to what target or performance level. Mechanisms must also be provided to address changes in the project implementation, emergencies or unexpected events, and the associated approval processes. 75 - Clarification of institutional structures, roles, communication and reporting processes required as part of the implementation of the EMP. - Description of the link between the EMP and associated legislated requirements. - Description of requirements for record keeping, reporting, review, auditing and updating of the EMP. There is no standard format for EMPs. The format needs to fit the circumstances in which the EMP is being developed and the requirements which it is designed to meet. For each mitigate measure, it can often be useful to summarize these in a table that shows for each who is responsible, the location or part of project to which the measure applies, the timing, the budget and the monitoring to verify that the measure is achieving its intended target. There are also additional monitoring needs (unrelated to whether mitigate measures are working as intended).These also can be put into a summary table showing who is responsible, the reason for the measure and part of project to which it applies, the timing, the reporting related to the monitoring and the costs. The level of detail in the EMP may vary from a few pages for a project with low environmental risks, to a substantial document for a large-scale complex Category A project with potentially high environmental risks. The EMP should be formulated in such a way that it is easy to use. References within the plan should be clearly and readily identifiable. Also, the main text of the EMP needs to be kept as clear and concise as possible, with detailed information relegated to annexes. The EMP should identify linkages to other relevant plans relating to the project, such as plans dealing with resettlement or indigenous peoples issues. Although the scope and content of an EMP will be a function of both the significance of a project’s potential impacts and also a project’s site, there are common elements that should be included in all EMPs. These elements, which are suggested for a medium to high risk project, are described in detailed below: 6. Common Elements of an EMP and its Contents Introduction This shouldprovide brief but concise information on (i) the EMP context: describe how the EMP fits into the overall planning process of the project, listing project/subproject environmental studies such as EIA/EPC, approval documentation. (ii) the EMP’s connection with the ESMF (if relevant) and the project. (iii) the objectives of the EMP: describe what the EMP is trying to achieve. The objective should be project specific, not broad policy statements. The project- specific EMP shall form part of the project contract specifications. Policy, legal and administrative framework • GOV’s regulations: provide brief description of GoV regulations related to EIA and technical regulations and standards applied to the subproject. • World Bank’s safeguard policy: list World Bank safeguard policies triggered. Project description The project/subproject objective and description should be provided in sufficient detail to define the nature and scope of the project. These should include: 76 (i) project location: site location should be described with location of the activities provided including location maps showing location in the project area as well as details at the subproject level. (ii) construction/operation activities: the description may include a brief description of construction and operation processes; working or operating hours, including details of any activities required to be undertaken outside the hours; employment numbers and type; the plant and equipment to be used; the location and site facilities and worker camps; bill of quantities for civil works. (iii) timing and scheduling: anticipated commencement and completion dates should be indicated. If the project is to be completed in stages then separate dates for each stage should be provided. Baseline data This should provide key information on the environmental background of the subproject as well as its connection with the project area, including maps. Focus should be given to provide clear data on topography, major land use and water uses, soil types, flow of water, and water quality/pollution. Brief description on socioeconomic condition and EM (if relevant) should also be provided. Photos showing existing conditions of project sites should be included. Potential impacts and mitigation measures This section summarizes the predicted positive and negative impacts associated with the proposed project/subproject, particularly those presenting impacts of medium to high significance. A summary should be provided of the predicted positive and negative impacts associated with the proposed project that require management actions (i.e. mitigation of negative impacts or enhancement of positive impacts). The necessary information for this section should be obtained from the EIA process, including the EIA and EPC reports. The impacts should be described for pre-construction, construction, and operation phases. Using a matrix format could help understanding connection between the impacts and mitigation better. Cross-referencing to the EIA/EPCs reports or other documentation is recommended, so that additional detail can readily be referenced. While commonly-known social and environmental impacts and risks of construction activities can be addressed through Environmental Codes of Practices (ECOP), specific mitigation measures should also be proposed to addressed sub-project specific impacts predicted based on site-specific conditions and typology of investments. Some measures can be proposed for incorporation into engineering design to address potential impacts/risks and/or bring about added values of the works provided (e.g. road/access path improvement combined with canal lining). Mitigation measures should include a communication program and grievance redress mechanism to address social impacts. It is necessary to ensure that this section responds to appropriate suggestions and adequately addresses the issues and concerns raised by communities as recorded in the consultation summary presented in Section 8. (See Table 1below for a sample mitigation measures matrix.) 77 Table 1: Example of a Mitigation measure matrix determine for Applicable Standard (e.g. country, WB, VerificationRequired mitigation measures Mitigation Measure Cost of Mitigation Responsible party effectivenessof Locations measures Phase Issue EU) to Design/Pre-Construction Construction Operation Decommissioning Depending on impacts of a project, Physical Cultural Resources (OP 4.11) or Pest Management (OP 4.09) may be triggered and physical cultural resources may need to be developed and included in the EMP. Monitoring Monitoring of EMP implementation would encompass environmental compliance monitoring and environmental monitoring during project implementation as described in details below: (i) Environmental compliance monitoring includes a system for tracking environmental compliance of contractors such as checking the performance of contractors or government institutions against commitments expressed in formal documents, such as contract specifications or loan agreements. (ii) The objectives of environmental monitoring is: a) to measure the effectiveness of mitigating actions (e.g. if there is a mitigating action to control noise during construction, the monitoring plan should include noise measurements during construction); b) To meet Borrower’s environmental requirement; and c) to respond to concerns which may arise during public consultation (e.g. noise, heat, odor, etc.), even if the monitoring is not associated with a real environmental issue (it would show good faith by the Borrower). The monitoring program should clearly indicate the linkages between impacts identified in the EA report, indicators to be measured, methods to be used, sampling locations, frequency of measurements, detection limits (where appropriate), and definition of thresholds that will signal the need for corrective actions, and so forth. The cost of environmental monitoring should be estimated and included in sub-project’s total investment costs. It is crucial to monitor and collect data that is useful and will actually be used. There is no value in spending money to collect data that is not properly analyzed, that is not reported or even if reported, no actions can or will be taken. It is useful to know the kinds of analysis to which the data will be subjected before collecting the data to ensure that one can do the anticipated analyses. Table 2 provides an example of how monitoring is structured. 78 Table 2. An example of monitoring plan Phase What Where isthe How is When is Responsible parameteris to parameter to parameter to parameter Party be be monitored? be monitored/ to be monitored/ monitored?(N type of frequency of ote if it is monitoring measurement or against a set equipment? continuous? standard) Pre-construction Construction Operation Decommissioning EMP Implementation arrangements:The following subsections are recommended. (i) Responsibility for EMP implementation: This describes how the implementing agency plans to assign responsibilities to assure proper flow and use of environmental information for efficient and effective environmental management. For a World Bank-financed project, the stakeholders involved in EMP implementationand monitoring usually include the project implementing agency, the PMU, construction contractors, construction supervision consultant (CSC), independent environmental monitoring consultant (IEMC), local environmental management authorities, NGOs, and communities. Each player should be assigned with practical responsibilities. Good coordination among these actors ensures effective implementation of the EMP. Responsibilities of the CSC and IEMC for monitoring and supervision of EMP compliance during construction and supervision should be indicated in some detail. Generic Terms of Reference for CSC and IEMC should be included in the EMP as annexes. (ii) Incorporation of EMP into detailed technical design and bidding and contractual document: The bidding and contractual documents should include EMP requirements documents to ensure that obligations are clearly communicated to contractors. The bidding documents might also include environmental criteria as part of the basis for selecting contractors. Contractors should also be obliged to follow appropriate environmental, health, and safety standards to reduce associated risks during construction and operation. Therefore, this section should also elaborate on how PMU and its staff will incorporate EMP into the project detailed design and tendering documents. (iii) Environmental compliance framework: During project implementation, the Borrower reports on compliance with environmental commitments, the status of mitigative measures, and the findings of monitoring programs as specified in the project documents. The World Bank bases supervision of the project’s environmental aspects on the EMP as set out in the legal agreements for the project. This subsection elaborates on the environmental duties of the contractor and its safety and environment officer, compliance with legal and contractual requirements, and environmental supervision during construction supervision, and a penalty framework. 79 (iv) Reporting procedures: Procedures to provide information on the progress and results of mitigation and monitoring measures should be clearly specified. As a minimum, the recipients of such information should include those with responsibility for ensuring timely implementation of mitigation measures, and for undertaking remedial actions in response to breaches of monitoring thresholds. In addition, the structure, content and timing of reporting to the World Bank should be designed to facilitate supervision. Responsibility of different actors for reporting and the type of reports should also be clearly indicated. Institutional Strengthening Plan This section describes institutional needs to assure successful implementation of the mitigation and monitoring plans. This may include equipment purchases, training, consultant services, and special studies. Most projects would mainly require capacity strengthening in EMP implementation through training for different stakeholders. All relevant stakeholders should undergo general environmental awareness training and training about their responsibilities under the EMP. The training should ensurethat they understand their obligation to exercise proper environmental management during project implementation. Environmental training should include: a site induction, familiarization with the requirements of the EMP; environmental emergency response training; familiarization with site environmental control; targeted environmental training for specific personnel such as environmental staff of PMU, safety and environment officer of the contractor, construction supervision engineer. The need for additional or revised training should be identified and implemented from the outputs of monitoring and reviewing the EMP. Records of all training should be maintained and include: who was trained; when the person was trained; the name of the trainer; and a general description of the training content. Estimated Budget for EMP Implementation These should be specified for both the initial investment and recurring expenses for implementing all measures contained in the EMP, integrated into the total project costs, and factored into loan negotiations. It is important to capture all costs, including administrative, training, environmental monitoring and supervision, costs for mitigation measures to be implemented by contractors, costs for additional environmental studies, and operational and maintenance costs. The aim is to satisfactorily mitigate adverse impacts at least cost. The costs of preparing an EMP, which are borne by the Borrower, vary depending on factors such as the complexity of potential impacts, the extent to which international consultants are used, and the need to prepare separate EMPs for subprojects. Consultation The EMP should clearly describe and justify the proposed mitigation measures to facilitate public consultation. Consultation with affected people and NGOs should be integral to all Category A and B projects in order to understand the acceptability of proposed mitigation measures to affected groups. In some situations, the development of environmental awareness amongst stakeholders is important to ensure effective consultation on the EMP. Where projects involve land acquisition or resettlement, these issues should be fully addressed in resettlement action plan (RAP), and where appropriate in ethnic minority development plan (EMDP). The consultation process can also be used help to design achievable mitigation measures. This process is particularly important when it depends on the buy-in of the affected people. Where appropriate, this may be supported by including formal requirements within the TOR for public participation in developing the EMP. 80 Public consultation of EMP should be an integral part of EIA/EPC consultation. If consultation has not been conducted or not adequately carried out during EIA/EPC preparation process, it must be undertaken to capture the feedbacks of the affected people and communities. This section provides summary on consultation activities to stakeholders, particularly affected households, on the final draft EMP at project/subproject level. This summary should indicate the date and location where consultation meeting took place, the number of participants from affected households, the numbers of female and ethnic minority participants, and suggestions, and concerns raised and responses. Locations and dates of EMP to be disclosed should be provided. Disclosure of the EMP Information disclosure: According to the World Bank’s policy on access to information, all draft safeguard instruments, including the EMP, are disclosed locally in an accessible place and in a form and language understandable to key stakeholders and in English at the InfoShop before the appraisal mission. 81 Annex 4. Environmental Code of Practice (ECOPs) (Adapted for VEEIE from standardized ECOPs; and the World Bank General Environmental Health and Safety Guidelines of the World Bank (see Annex 7 for details) – funded small work project in Vietnam). Part 1: Construction contractor’s responsibility ISSUES/RISKS MITIGATION MEASURE Applicable Standards 1. Dust generation/ • The Contractor implement dust • QCVN 06: 2009/BTNMT: National Air pollution control measures to ensure that the technical regulation on toxic substance generation of dust is minimized and in ambient air. is not perceived as a nuisance by local residents, maintain a safe • TCVN 6438-2005: Road vehicles. working environment, such as: Maximum permitted emission limits of exhaust gas. - water dusty roads and • Circular No. 03/2018/TT-BGTVT on construction sites; inspection of quality, technical safety - covering of material stockpiles; and environmental protection for cars - Material loads covered and listed in decree 116/2017/NĐ-CP secured during transportation to prevent the scattering of soil, • TCVN 6438-2005: Road vehicles. Maximum permitted emission limits of sand, materials, or dust; exhaust gas. - Exposed soil and material stockpiles shall be protected • QCVN 05:2013/BTNMT: National against wind erosion. technical regulation on ambient air quality • All vehicles must comply with • The WBG General Environmental Vietnamese regulations controlling Health and Safety Guidelines allowable emission limits of exhaust gases. • The EHS Guidelines and Industry Sector Guidelines • Vehicles in Vietnam must undergo a regular emissions check and get certified named: “Certificate of conformity from inspection of quality, technical safety and environmental protection” following Decision No. 35/2005/QD-BGTVT; • There should be no burning of waste or construction materials (e.g. Bitumen, etc.) on site. • All vehicles must have appropriate 2. Noise and • QCVN 26:2010/BTNMT: National “Certificate of conformity from technical regulation on noise vibration inspection of quality, technical safety and environmental • QCVN 27:2010/BTNMT: National protection” following Decision No. technical regulation on vibration 35/2005/QD-BGTVT; to avoid • The WBG General Environmental exceeding noise emission from Health and Safety Guidelines poorly maintained machines. • Vehicles in Vietnam must undergo a regular emissions check and get certified named: “Certificate of conformity from inspection of quality, technical safety and environmental protection” following Decision No. 35/2005/QD-BGTVT; • There should be no burning of waste or construction materials (eg. 82 Bitumen, etc.) on site. • Cement processing plants should be far from residential areas • Portable or constructed toilets 3. Water pollution • QCVN 09:2015/BTNMT: National must be provided on site for Technical Standard on underground construction workers. Wastewater water Quality from toilets as well as kitchens, showers, sinks, etc. shall be • QCVN 14:2008/BTNMT: National technical regulation on domestic discharged into a conservancy wastewater; tank for removal from the site or discharged into municipal • QCVN 40: 2011/BTNMT: National sewerage systems; there should technical regulation on industrial wastewater; be no direct discharges to any water body. • TCVN 7222: 2002: General • Wastewater over permissible requirements on centralized values set by relevant Vietnam wastewater treatment plant; technical standards/regulations • The WBG General Environmental must be collected in a Health and Safety Guidelines conservancy tank and removed from site by licensed waste collectors. • At completion of construction works, water collection tanks and septic tanks shall be covered and effectively sealed off. • Do not allow waste, litter, oils or foreign materials into water sources • Do not wash cars or machinery in natural water sources • A comprehensive listing of sources and location of wastewater discharge will be prepared and maintained • Appropriate operating procedure will be undertaken for minimization of wastewater (such as neutralizing predisposal treatment, etc.) • The Contractor shall follow the • TCVN 4447:1987: Earth works-Codes 4. Drainage and detailed drainage design included for construction sedimentation in the construction plans, to • Decree No. 22/2010/TT-BXD on ensure drainage system is always regulation of construction safety maintained cleared of mud and • QCVN 08:2015/BTNMT – National other obstructions. technical regulation on quality of • Areas of the site not disturbed by surface water construction activities shall be maintained in their existing conditions. • At all places of work, the 5. Solid waste • Decree No. 38/2015/ND-CP on Contractor shall provide litter bins, solid waste management and scrap containers and refuse collection facilities. • Decision No. 23/2006/QD-BTNMT with list of hazardous substance • Solid waste, including displaced equipment, may be temporarily • Circular No. 36/2015/TT-BTNMT on stored on site in a designated area management of hazardous approved by the Construction substance Supervision Consultant and • The WBG General Environmental relevant local authorities prior to Health and Safety Guidelines 83 collection and disposal. • Waste storage containers shall be covered, tip-proof, weatherproof and scavenger proof. • No burning, on-site burying or dumping of solid waste shall occur. • Recyclable materials such as wooden plates for trench works, steel, scaffolding material, site holding, packaging material, etc shall be collected and separated on-site from other waste sources for reuse, for use as fill, or for sale. • If not removed off site, solid waste or construction debris shall be disposed of only at sites identified and approved by the Construction Supervision Consultant and included in the solid waste plan. Under no circumstances shall the contractor dispose of any material in environmentally sensitive areas, such as in areas of natural habitat or in watercourses. • Used oil and grease shall be 6. Chemical or • Decision No. 23/2006/QD-BTNMT removed from site and sold to an hazardous wastes with list of hazardous substance approved used oil recycling company. • Decree No. 38/2015/ND-CP on waste management and scrap • Used oil, lubricants, cleaning materials, etc. from the • Circular No. 36/2015/TT-BTNMT on maintenance of vehicles and management of hazardous machinery shall be collected in substance holding tanks and removed from • The WBG General Environmental site by a specialized oil recycling Health and Safety Guidelines company for disposal at an approved hazardous waste site. • Store chemicals in safe manner, such as roofing, fenced and appropriate labeling. • Do not use unapproved toxic materials, including lead-based paints • The disposal and management of used equipment and parts and hazardous chemicals shall be carried out in accordance with the national regulations and EHS Guidelines. Specifically, the waste should unassembled safely following applicable practices and removed from site by a certified recycling and/or disposal company. • Areas to be cleared should be 7. Disruption of • Law on Environment protection No. minimized as much as possible. 55/2014/QH13 vegetative cover • The Contractor shall remove and ecological topsoil from all areas where topsoil resources will be impacted on by 84 rehabilitation activities, including temporary activities such as storage and stockpiling, etc; the stripped topsoil shall be stockpiled in areas agreed with the Construction Supervision Consultant for later use in re- vegetation and shall be adequately protected. • The application of chemicals for vegetation clearing is not permitted. • Prohibit cutting of any tree unless explicitly authorized in the vegetation clearing plan. • When needed, erect temporary protective fencing to efficiently protect the preserved trees before commencement of any works within the site. • The Contractor shall ensure that no hunting, trapping shooting, poisoning of fauna takes place. • Before construction, carry out 8. Traffic • Law on traffic and transportation consultations with local No. 23/2008/QH12 management government and community and with traffic police. • Law on construction No. 50/2014/QH13 • Significant increases in number of vehicle trips must be covered in a • Circular No.22/2010/TT-BDX dated construction plan previously 03 Dec., 2010 on labor safety approved. Routing, especially of during the construction of civil heavy vehicles, needs to take into works. account sensitive sites such as schools, hospitals, and markets. • Installation of lighting at night must be done if this is necessary to ensure safe traffic circulation. • Place signs around the construction areas to facilitate traffic movement, provide directions to various components of the works, and provide safety advice and warning. • Employing safe traffic control measures, including road/rivers/canal signs and flag persons to warn of dangerous conditions. • Avoid material transportation for construction during rush hour. • Signpost shall be installed appropriately in both water-ways and roads where necessary. • Provide information to affected • Decree No. 73/2010/ND-CP on 9. Interruption of households on working schedules administrative penalization security utility services as well as planned disruptions of and society issues water/power at least 2 days in advance. • Any damages to existing utility 85 systems of cable shall be reported to authorities and repaired as soon as possible. • Cleared areas such as disposal • Law on Environment protection No. 10. Restoration of areas, site facilities, workers’ 55/2014/QH13 affected areas camps, stockpiles areas, working platforms and any areas temporarily occupied during construction of the project works shall be restored using landscaping, adequate drainage and revegetation. • Soil contaminated with chemicals or hazardous substances shall be removed and transported and buried in waste disposal areas. • Training workers on occupational 11. Worker and public • Circular No. 22/2010/TT-BXD dated safety regulations and provide 03 December 2010 on regulation of Safety sufficient protective clothing for construction safety workers in accordance with applicable Vietnamese laws. • Directive No. 02 /2008/CT-BXD on safety and sanitation issues in • Install fences, barriers, dangerous construction agencies warning/prohibition site around the construction area which showing • TCVN 5308-91: Technical regulation potential danger to public people. on safety in construction • The contractor shall provide safety • Decision No. 96/2006/QD-TTg dated measures as installation of fences, 04 May 2006 on management and barriers warning signs, lighting implementation of bomb mine system against traffic accidents as explosive material disposal. well as other risk to people and • The WBG General Environmental sensitive areas. Health and Safety Guidelines • If previous assessments indicate there could be unexploded ordnance (UXO), clearance must be done by qualified personnel and as per detailed plans approved by the Construction Engineer. • Do not use of alcohol by workers during work hours • Do not work without safety equipment (including boots and helmets) • The contractor shall coordinate • Decree No. 73/2010/ND-CP on 12. Communication with local authorities (leaders of administrative penalization security with local local communes, leader of and society issues communities villages) for agreed schedules of construction activities at areas nearby sensitive places or at sensitive times (e.g., religious festival days). • Copies in Vietnamese of these ECOPs and of other relevant environmental safeguard documents shall be made available to local communities and to workers at the site. • Disseminate project information to affected parties (for example local 86 authority, enterprises and affected households, etc) through community meetings before construction commencement. • Provide a community relations contact from whom interested parties can receive information on site activities, project status and project implementation results. • Inform local residents about construction and work schedules, interruption of services, traffic detour routes and provisional bus routes, blasting and demolition, as appropriate. • Notification boards shall be erected at all construction sites providing information about the project, as well as contact information about the site managers, environmental staff, health and safety staff, telephone numbers and other contact information so that any affected people can have the channel to voice their concerns and suggestions. • Do not create nuisances and disturbances in or near communities 13. Chance find If the Contractor discovers • Law on Cultural Heritage procedures archeological sites, historical sites, 32/2009/QH12 remains and objects, including graveyards and/or individual graves • Decree No. 98/2010/ND-CP dated during excavation or construction, the 21/09/2010 of the Government on Contractor shall: implementing a number of articles of Law on cultural heritage and Law • Stop the construction activities in on amendment and the area of the chance find; supplementation of a number of • Delineate the discovered site or articles of Law on cultural heritage. area; • Secure the site to prevent any damage or loss of removable objects. In cases of removable antiquities or sensitive remains, a night guard shall be arranged until the responsible local authorities or the Department of Culture and Information takes over; • Notify the Construction Supervision Consultant who in turn will notify responsible local or national authorities in charge of the Cultural Property of Viet Nam (within 24 hours or less); • Relevant local or national authorities would be in charge of protecting and preserving the site before deciding on subsequent 87 appropriate procedures. This would require a preliminary evaluation of the findings to be performed. The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage; those include the aesthetic, historic, scientific or research, social and economic values; • Decisions on how to handle the finding shall be taken by the responsible authorities. This could include changes in the layout (such as when finding an irremovable remain of cultural or archeological importance) conservation, preservation, restoration and salvage; • If the cultural sites and/or relics are of high value and site preservation is recommended by the professionals and required by the cultural relics authority, the Project’s Owner will need to make necessary design changes to accommodate the request and preserve the site; • Decisions concerning the management of the finding shall be communicated in writing by relevant authorities; • Construction works could resume only after permission is granted from the responsible local authorities concerning safeguard of the heritage. 88 Annex 5. PCB management procedure The oil disposed from transformers shall be tested on PCB content. In case the oil is confirmed as PCB contaminated, it would be disposed or recycled in compliance with decree 38/2015/BTNMT on waste and scrap management, circular 36/2015/TT-BTNMT on hazardous waste management, QCVN 56:2013/BTNMT National Technical regulation on refused oily recycle. PCB management procedure is implemented in below steps: 1. Assignment. specify code, classification and storage PCB contaminated waste oil. 2. Registration on the Owner of discharged source. 3. Planning a temporary storage location for PCB contaminated waste oil. The storage shall comply to decree 38/2015/BTNMT on waste and scrap management, circular 36/2015/TT- BTNMT on hazardous waste management and technical guidelines + Guideline No. 1 on identification of PCBs containing oils, equipment, materials, and waste (issued at document No. 2299/TCMT-KSON by VEA dated November 20, 2014); + Guideline No. 2 on registration of PCB containing oil, equipment, materials, and waste (issued by VEA dated November 20, 2014); + Guideline No. 3 on packing and labeling PCB containing oils, equipment, materials, and waste (issued by VEA dated November 20, 2014); + Guideline No. 4 on storage of PCBs containing oils, equipment, materials, and waste (issued by VEA dated November 20, 2014); + Guideline No. 5 on transportation of PCBs containing oils, equipment, materials, and waste (issued by VEA dated November 20, 2014); + Guideline No. 6 on Decontamination and disposal of PCBs containing oils, equipment, materials, and waste (issued by VEA dated November 20, 2014); + Guideline No. 7 on response and contingency plan development regarding PCBs (issued by VEA dated November 20, 2014); + Guideline No. 8 on prevention and response to PCB incidents (issued by VEA dated November 20, 2014); + Guideline No. 9 on inspection of PCB management (issued by VEA dated November 20, 2014) 4. Contract to a permitted functional unit to collect and transport and treat the hazardous waste included PCB contaminated oil refused. Below diagram is expressed the PCB management procedure would be used for subprojects under VSUEE: 89 IEs test PCB’s contamination Non PCBs of waste oil PCB Disposal or recycle (comply to Decree no.38/2015/NĐ-CP) Registration of discharge PCB contaminated waste oil to source Owner be managed confirming to decree Environmental 38/2015/BTNMT on waste and treatment scrap management, circular consultant (by 36/2015/TT-BTNMT on contract) hazardous waste management, Report to management QCVN 56:2013/ BTNMT authorities and recording National Technical regulation on report on delivery and refused oily recycle and technical received guidelines on PCB management Figure 8. PCB Management Procedure 90 Annex 6. Public Consultation Meeting Minutes On 29/15/2018, at the Meeting room No. 207 Block B of the Ministry of Industry and Trade, 54 Hai Ba Trung Street, Hanoi, PMB of MOIT held a stakeholder consultation workshop on the draft Environmental and Social Management Framework,, Resettlement Policy Framework, and Ethnic Minorities Development Framework. 1. Participants - 03 representatives of the PMB and Department of Energy Saving and Sustainable Development; - 01 representatives of State Bank of Vietnam; - 01 representatives of Non-governmental organizations: Pan Nature; - 06 representatives of commercial banks: Vietnam Prosperity Joint-Stock Commercial Bank, Sai Gon–Hanoi Joint Stock Commercial Bank, Vietnam Joint Stock Commercial Bank for Industry and Trade, Ho Chi Minh Development Joint Stock Commercial Bank, Vietnam Bank for Agriculture and Rural Development, Vietnam Technological and Commercial Joint-stock Bank. - 8 participants from relevant institutions and organizations: Ministry of Environment and Natural Resources (MONRE), Petroleum of Vietnam, Electricity of Vietnam, Vietnam Steel and Cement corporation. 2. Purposes of the workshop To receive comments and opinions from stakeholders to finalize 3 policy frameworks, guidelines for implementing energy saving projects with the aims of achieving the national targets on environmental protection and social security pursuant to the policy frameworks of the World Bank and regulations of Vietnam: - Environmental and Social Management Framework - Resettlement Policy Framework n - Ethnic Minority Development Framework 3. Key points of the workshop 3.1. Comments and feedbacks on Environmental and Social Management Framework Comments and opinions from participants forced on 5 main contents: - The frameworks (project classification, occupations, ethnic minority, resettlement, compensation etc.) should be assessed more detailed; - The project should clarify the scope of these frameworks (available projects or potential projects, inside or outside of plants’ boundaries, environment safeguard and social assessment etc.); - The project should update new regulations on environmental protection and clean technologies; - PMB should negotiate with WB about harmonizes interest rate. PFIs also expected to reduce interest rates, to offset the costs. - It is necessary to improve capacity for appraisal staffs of PFIs. - Clarify the rules and procedures when a default occurs. In this case, what is the standard for being guaranteed with loans? Please clarify and consider which mechanism to overcome or compensate for damage in this 91 case for the PFIs. Explanations and feedbacks from the independent consultants and PMB: - After discussion with World Bank and Department of Energy Saving and Sustainable Development about scope of works, the consultant will revise for more detailed; however, the scope of these frameworks is for potential projects. These projects would be screened pursuant to Vietnamese regulations and World Bank’s safeguard policies. Procedures for eligible projects were shown in the Appendix of the frameworks. Moreover, the assessment of environmental safeguard would follow Vietnamese regulations and World Bank’s safeguard policies and guidelines. - The policy framework was built up for conformation by PFIs, so they must arrange competence staffs sufficiently to implement. These staffs will be trained for capacity building. - The policy framework and guidance will be adjusted so that easily access to conduct in fact. - PMB found that this GCF project has very favorable support and not much content for negotiating interest rates. The VSUEE project is leveraging the attractiveness of the VEEIE project and the Interest rate is still in the negotiation process to find a solution for interest rates. The World Bank is also considering a mechanism to reduce the risk for commercial banks when the exchange rate changes. - To reduce damages as mentioned from the guaranteed projects, PFIs are required to strengthen their responsibility for the verification and supervision throughout the project implementation process. Such as the problem arises would be found out in early stage and then both the bank and the borrowing IEs will have to agree on a corrective plan. World Bank and PMU will give time for PFI and IEs to remedy. If after a period of time that no remedial action has been taken or if no corrective action has been taken, the funding side must take action. In fact, the risks will fall into the banks more than the business. That involves banking constraints on the responsibility of reviewing and evaluating projects to make loan decisions. On the criteria for guarantee payment, this issue is not yet decided; it will be exchanged and clarified with the World Bank. - New national environmental regulations would be updated to the frameworks; 3.2. Comments and feedbacks on Resettlement Policy Framework and Ethnic Minorities Development Framework Comments and opinions from participants forced on 2 main contents: - The RPF should follow the Vietnamese regulations; This framework is unclear for the affected people and the compensated objects is unlawful as result of effects on the domestic projects and adjacent projects (eg support levels, compensation for projects under Vietnamese law differs from borrowing projects that apply WB policy frameworks). - On the grievance mechanism, it is should be added the PMB and the Board of Compensation and the Land Service Organization (established by the Provincial People's Councils). Explanations and feedbacks from consultant and PMB: - “Policy framework on resettlement plan” and “Policy framework on ethnic minorities” cannot be modified and written in accordance with Vietnamese regulations, it must be implemented in accordance with World Bank guidelines as this is a World Bank loan/guaranteed; 92 - Regarding the complaints mechanism, the consultant would like to receive comments, review, amend and supplement appropriate and complete. 4. Conclusion The workshop was closed at 11:00 a.m. of the same day. The consultant will revise the frameworks and report based on the comments and opinions of stakeholders. Participant List of public consultation is included below: 93 94 95 Annex 7. Environmental, Health and Safety Guidelines; and Industry Sector Guidelines of the World Bank Group References of the Environmental, Health and Safety Guidelines; and Industry Sector Guidelines of the WorldBank Group in Vietnamese and English versioncan access in below links: https://www.ifc.org/ehsguidelines http://documents.worldbank.org/curated/en/638461495002160327/text/112110- VIETNAMESE-IFC-EHS-General-Guidelines-PUBLIC.txt 96