84075 INTEGRATEDSAFEGUARDSDATASHEET APPRAISAL STAGE Date prepared/updated: 20/12/2013 I. Basic Information 1. Basic Project Data Country: Vanuatu Project ID: Pl33701 Additional Project ID (if any): Project Name: Vanuatu Global Partnership on Output Based Aid (GPOBA) Grid-Based Electricity Access Project Task Team Leader: Mr. Kamleshwar Khelawan Estimated Appraisal Date: January 30, 2014 I Estimated Board Date: March 7, 2014 Managing Unit: EASNS I Lending Instrument: Small RETF Grant Sector: Energy Theme: Urban services and housing for the poor, Rural services and infrastructure, Social inclusion. IBRD Amount (US$m.): IDA Amount (US$m.): GEF Amount (US$m.): PCF Amount (US$m.): Other financing amounts by source: (US$m): GPOBA US$4.85 million; US$0.52 million User Contribution Enviromuental Category: B Is this a transferred project Yes [X] No[] Simplified Processing Simple [X] Repeater [] Is this project processed under OP 8.00 (Rapid Response to Crises and Yes [] No [X] Emergencies) I 2. Project Objectives: The Project Development Objective (PDO) is to increase sustainable access to formal grid-based electricity services within Vanuatu's electricity concession service areas for low-income customers through targeted subsidies. Access in the context of this project means a direct consumer connection to the electricity grid, as opposed to a shared connection or no connection due to lack of affordability The objective will be achieved by subsidizing the cost of grid-based household service connections for approximately 4,375 households that will be eligible to connect as "small domestic consumers". The project will also contribute to improving household safety standards by subsidizing the cost of household wiring, where wiring is not to standard or in place, for eligible households and provide energy saving light bulbs. 3. Project Description: The project has four components. These are: I) Output Based Aid (OBA) subsidies for new electricity service cotll1ections for low-income households; 2) OBA subsidies for household wiring for low-income households accessing electricity services under the project; 3) Implementation support to the Department of Energy (DoE) for project management, communications and outreach, and training, and 4) Independent verification of outputs. The proposed activities under each component are presented below. Component 1: OBA subsidies for new electricity service connections for low income households. This component provides one-off OBA subsidy to cover up to 80 percent of the cost of cotmecting low-income households to grid-based electricity services in Vanuatu. The subsidy will be available for both post-paid electricity meters and pre-paid meters (where available). The component will be implemented through existing private sector utilities - Union Electrique du Vanuatu Ltd (UNELCO) and Vanuatu Utilities and Infrastructure Limited (VUI), and will be subject to verification by the DoE. Component 2: OBA subsidies for household wiring for low-income households accessing electricity services under the project. This component provides one-off OBA subsidies to cover the cost (up to a predefined limit) of household wiring for low-income households accessing grid-based electricity services under the project, where wiring is not to standard or not in place. The households will be wired according to a standard design for the project in accordance with Australian and New Zealand standards (AS/NZS 3000). Household wiring will include cabling and backfilling (in a trench prepared by the consumer) from the utility meter box to a Ready Board in the consumer's premises. The Ready Board will include necessary protection, two light sockets with switch, two power outlets and two energy saving light bulbs. For safety reasons, the wiring will be carried out and/or authorized by qualified (Grade A, Australian ElectricaVMechanical Fitters license or equivalent) electrical contractors contracted or authorized by UNELCO or VUI to carry out the works. The utilities will supervise the electrical contractors and on completion, provide verification that the internal wiring has been completed to standard. Component 3- Implementation support to DoE for project management, communications and outreach, and training. The DoE will require support throughout the project's life to oversee implementation and develop longer-term institutional capacity for managing energy-related subsidies. Funding from this component supports the DoE with the following: (a) Development and adoption of technical standards and licensing for household wiring in technical project implementation; (b) Monitoring and evaluation and financial management of OBA subsidies; (c) Outreach and education to raise beneficiaries' awareness of the project, outreach to raise consumer awareness on electrical safety; (d) Technical training and related support for DoE staff, if required; (e) Services from an independent auditor, if required; (f) Outreach and project implementation activities such as hiring training facilities, printing of training and awareness raising material, travel to outer islands for implementation of key project activities; and (g) Goods required for project implementation such as project related office equipment and supplies. Component 4- Independent verification of outputs. This component will fund a suitably qualified consultant or firm as an Independent Verification Agent (NA) to undertake the verification of outputs under the project. 4. Project Location and salient physical characteristics relevant to the safeguards analysis: The project will be located within the geographical boundaries of the electricity grid concession areas in suburban-residential areas ofLuganville (on Espiritu Santo), Port Vila (on Efate), and the islands ofTanna and Malekula. The Luganville grid is operated by VUI, and the remaining grids are operated by UNELCO. Most of the low voltage distribution lines are above ground, although there is some below ground reticulation (e.g. the new Bladiniere Estate in Port Vila). Connections will be made either above ground or below ground and will comprise a wire from the existing distribution line to dwellings, and a meter. Poles may be included if necessary. No involuntary land acquisition or compensation is involved. Disruptions during construction will occur within the distribution corridor (within I OOft of any line) and on the property of the subsidy recipient. There is flexibility as to the route of the poles and lines. These will predominantly be on land already acquired for public purposes, such as road reserve. This flexibility means that physical cultural resources can be avoided and there will be a low likelihood of impacts on assets such as productive trees or cropping areas. Where it is unavoidable to remove trees, crops or structures in the access way in order to connect, voluntary land donation protocols will apply. As such, work will occur only after due consultation, at the request, and with the informed consent ofthe affected potential beneficiary(ies) and other affected parties. Compensation for affected land or assets is therefore not foreseen. Normal compensation provision for unforeseen damage will be included in the obligations of the Contractor(s). Eligible consumers will "self-select" for this program. That is, the consumers will request a connection (as per current processes) to the grid from their utility and ensure access to the utility for a connection to be made. The GPOBA subsidy is to be targeted to low-income consumers. Low-income consumers in Vanuatu benefit from subsidized tariffs and there is already a targeting mechanism in place in Vanuatu for such consumers. The GPOBA program will utilize the existing targeting mechanism and targeting is based on a 5A mono-phase connection. A communications strategy will be implemented to ensure that target beneficiaries will be made aware of the project, especially in areas where there are concentrations of low-income households. Women's organizations will be consulted and requested to assist in disseminating information to female heads of household. 5. Environmental and Social Safeguards Specialists on the Team: Penelope Ferguson (Consultant) Environmental Specialist (EASNS) Ann McLean (Consultant) Social Specialist (EASNS) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/BP 4.01 Yes Adverse environmental and social impacts are predicted to be minor, because of minor civil works components. There are social benefits to the electrification oflow income households. However since the location of works are not known at this time. the Environmental and Social Management Framework (ESMF) lays out the procedures for identifYing and managing environmental and social risks, and includes a Code of Practice for connection work to cover waste, soil management, vegetation clearance and health and safety. It also contains a grievance mechanism. Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 No Physical Cultural Resources OP/BP 4.11 No The project involves minor civil works within urban areas, with some flexibility around location and route. Physical cultural resources (including graves) can be identified prior to works, and avoided. Indigenous Peoples OP/BP 4.10 Yes The majority of the project beneficiaries in Vanuatu are Indigenous Peoples and therefore no Indigenous Peoples Plan (IPP) is needed and policy requirements will be directly integrated into project design. The potential impacts of the project are limited and the project is not likely to have any impacts on IPs' use of natural resources. A social assessment commensurate to the potential effects on the indigenous people has been undertaken. The Bank and client will ensure that: (i); free, prior and informed consultation takes place resulting in broad community support to the project; (ii) particular attention is given to ensure culturally appropriate mitigation measures and project benefits to the people; and (iii) a qualified Social Development Specialist is included in the Task Team. Involuntary Resettlement OP/BP 4.12 Yes Beneficiaries will self-identifY by applying for a subsidized connection. Even though land acquisition is not foreseen, land (however small) will be required for poles, guy wire anchors and transformers. It is anticipated that some of the required land may be in existing easements on public land and some of the land may be privately used. In addition it is foreseen that there will be voluntary land donation by the beneficiaries and other affected parties as is current practice to enable the concessionaire access to their properties for connections. Therefore, in order to address any resulting impacts, the project has prepared a Resettlement Policy Framework, which will guide discussions related to access to private properties and preparation of supporting documentation during project implementation. If land donations are made by the community or individuals then the project will ensure that in line with the Resettlement Policy Framework: (i) such donations meet the Bank's criteria for voluntary land donations, i.e. there has been prior consultation, and the donation is indeed voluntary without coercion; and (ii) the required protocols are in place to confirm and document the land donation or transaction, whatever is applicable. Safety ofDams OP/BP 4.37 No Projects on International Waterways OP/BP No 7.50 Projects in Disputed Areas OP/BP 7.60 No ll. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues I. Describe any safeguard issues and impacts associated with the proposed project. IdentifY and describe any potential large scale, significant and/or irreversible impacts: The potential for adverse environmental and social impacts is low. There are no potential large scale, significant and I or irreversible impacts. The ESMF describes potential impacts as tree trimming and crop loss along the connection access way, disruptions to households during connection, and dust, sediment and waste issues during connection (particularly if poles or trenches are required). These are all mitigated by good housekeeping, in line with the Utilities' standard operating practices. The social benefits are increased access to grid electrification for those households that had not previously connected. This will enable in particular better quality and lower cost lighting, better indoor air quaiity, access to media and amenities and improved quality of life. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Indirect benefits of access to electricity include ability to study or undertake income generation activities at night, improved health where electricity has replaced hydrocarbons or biomass fuels, greater awareness due to access to information and entertainment media, improved amenity for elderly or disabled persons, and greater sense of security and social inclusion. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts: The project has no anticipated adverse social impacts and no alternatives were considered. 4. For those safeguards to be addressed through OP/BP 4.00, characterize in general terms the extent to which borrower systems are equivalent to the Objectives and Operational Principles of OP 4.00, Table AI. For those safeguards to be addressed through conventional OP/BPs, identifY the reason for the decision to not apply OP 4.00 (e.g. absence of equivalence and/or acceptability report). Not applicable. 5. Describe measures taken by the borrower to address safeguard policy issues to identifY any significant gap-filling measures necessary to fulfill the conditions for application ofOP 4.00. Provide an assessment of borrower capacity to plan and implement the measures described: Not applicable. 6. IdentifY the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, including the Safeguard Diagnostic Review (SDR) with an emphasis on potentially affected people: Not applicable. B. Disclosure Requirements Date I Environmental and Social Management Framework Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 19December2013 Date of submission to lnfoShop 09 January 2014 For category A projects, date of distributing the Executive Summary ofthe EA to NA the Executive Directors "In country" Disclosure- See below Resettlement Action Plan/Framework/Policy Process Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 19 December2013 Date of submission to InfoShop 09 January 2014 "In country" Disclosure Prior to project appraisal, a draft version of the ESMF and RPF was reviewed by institutional stakeholders and interested civil society organizations, and public disclosed in Vanuatu at the Department of Energy's offices. Hard copies ofthe ESMF and RPF were also placed at the Utility Regulatory Authority, and UNELCO offices in Port Vila, Tanna, and Malekula, and VUI office in Loganville. This took place during the period of public consultations from November I I - November 22, 2013. High-level information about the project and the ESMF and RPF was announced via a Project Information Bulletin (made available in Bislarna, French and English) to the Radio Vanuatu public broadcasting service and the local press, the Vanuatu Daily Post and the Independent on November 9, 2013. C. Compliance Monitoring Indicators at tile Corporate Level (to be filled in wllen tile ISDS is finalized by the project decision meeting) OP/BP/4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes [X] No [] N/A[] If yes, then did the Regional Environment Unit or Sector Manager Yes (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the Yes credit/loan? OP/BP 4.00- Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects Did the Quality Assurance and Compliance Unit (QACU) and the Yes [ ] No [ ] N/A [X] ESSD and International Law Practice Group (LEGEN) review and approve the Safeguard Diagnostic Review report? OP/BP 4.04 -Natural Habitats Would the project result in any significant conversion or degradation Yes [ ] No [X] N/A [] of critical natural habitats? If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? OP 4.09 -Pest Management Does the EA adequately address the pest management issues? Yes [ ] No [ ] N/A [X] Is a separate PMP required? Yes [ ] No [X] N/A[] If yes, has the PMP been reviewed and approved by a safeguards specialist or Sector Manager? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? OP/BP 4.11 -Physical Cultural Resources Does the EA include adequate measures related to physical cultural Yes [ ] No [ ] N/A [X] resources? Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on physical cultural resources? OP/BP 4.10- Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as Yes [ ] No [X] N/A [] appropriate) been prepared in consultation with affected Indigenous Peoples? If yes, then did the Regional unit responsible for safeguards or N/A Sector Manager review the plan? If the whole project is designed to benefit IP, has the design been N/A reviewed and approved by the Regional Social Development Unit? OP/BP 4.12- Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process Yes [X ] No [ ] N/A [] framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Yes. Sector Manager review and approve the plan/policy framework/process framework? OP/BP 4.36- Forests Has the sector-wide analysis of policy and institutional issues and Yes [ ] No [ ] N/A [X] constraints been carried out? Does the project design include satisfactory measures to overcome these constraints? Does the project finance commercial harvesting, and if so, does it include provisions for certification system? OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? Yes [ ] No [ ] N/A [X] Have the TORs as well as composition for the independent Panel of Experts (POE) been reviewed and approved by the Bank? Has an Emergency Preparedness Plan (EPP) been prepared and arrangements been made for public awareness and training? OP 7.50- Projects on International Waterways Have the other riparians been notified of the project? Yes [ ] No [ ] N/A [X] If the project falls under one of the exceptions to the notification requirement, has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? What are the reasons for the exception? Please explain: Has the RVP approved such an exception? OP 7.60 -Projects in Disputed Areas Has the memo conveying all pertinent information on the Yes [ ] No [ ] N/A [X] international aspects of the project, including the procedures to be followed, and the recommendations for dealing with the issue, been prepared Does the PAD/MOP include the standard disclaimer referred to in the OP? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Yes [X] No [ ] N/A[] Bank's Infoshop? Have relevant documents been disclosed in-country in a public place Yes in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [X] No [ ] N/A[] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the Yes project cost? ·. Does the Monitoring and Evaluation system of the project include Yes the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the Yes borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr. Kamlesh Khelawan 24 December, 2013 Environmental Specialist: Ms. Penelope Ruth Ferguson 24 December 2013 Social Development Specialist: Ms. Beverley Ann McLean 24 December2013 Approved by: I I Sector Manager: Mr. Michel Kerf \.A./\ I' I I I ·'U>/'1 Comments: ~