The World Bank Mali Electricity System Reinforcement and Access Expansion Project (P176633) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 09/23/2021 | Report No: ESRSC02282 Sep 24, 2021 Page 1 of 9 The World Bank Mali Electricity System Reinforcement and Access Expansion Project (P176633) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Mali AFRICA WEST P176633 Project Name Mali Electricity System Reinforcement and Access Expansion Project Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Energy & Extractives Investment Project 1/28/2022 3/30/2022 Financing Borrower(s) Implementing Agency(ies) Republic of Mali EDM, AMADER Proposed Development Objective The Project Development Objective (PDO) to increase access to electricity in selected areas of Mali and the integration of least-cost solar energy by leveraging private sector participation. Public Disclosure Financing (in USD Million) Amount Total Project Cost 200.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The proposed project will increase access to sustainable, reliable and affordable energy in in Mali. It will target mainly three key areas: (i) grid rehabilitation, upgrading and extension to areas/localities around the interconnected grid (i.e transmission lines and substations in the regional cities) (ii) development of mini-grids in rural areas with solar PV under PPP arrangement to ensure sustainability; (iii) off-grid solar electrification in health, education and administration facilities and households in remote communities and (iv) increase in generation facilities through development of least-cost large Scale Solar with Storage. Sep 24, 2021 Page 2 of 9 The World Bank Mali Electricity System Reinforcement and Access Expansion Project (P176633) D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] This project will be implemented in urban and rural areas. In Bamako, and regional cities, it will involve rehabilitation, upgrading, densification and extension of distribution networks in communities/localities under the interconnected grid. In rural areas, project activities will consist of the development of photovoltaic mini-grids under PPP arrangement, as well as off-grid solar electrification in health, education and administration facilities and households in remote communities. It will also finance: (i) an increase in grid electricity access by rehabilitating, upgrading and extending grid infrastructure in and around Bamako and regional cities that are connected to the national grid; (ii) support new grid connections; and (iii) reduce technical and commercial losses by regularizing connections in peri urban areas to improve the financial performance of the national electricity utility, Electricite de Mali (EDM). Bamako and its suburbs are densely populated. The vegetation of Bamako and its surrounding areas is characterized by a succession of anthropized and natural vegetation. The most important ecosystem in Bamako is the classified forest of Koulouba, which covers an area of 2,010 hectares (ha). There are 11 listed forests in the surrounding areas of Koulikoro covering a total of 163,841 ha, in which the most important are the classified forests of Tienfala, Kassela, and the Mandino Hills. The construction works related to the installation of electrical distribution lines, MV and Low Voltage (LV) will have to take into account the existence of these listed forests. It is also important the project considers the fact that Bamako city and its suburbs and the regional cities are densely populated with a lot of economic activities. In addition, the project will be implemented in some rural areas, including conflict zones, for the Public Disclosure hybridization of existing diesel mini-grids. D. 2. Borrower’s Institutional Capacity Implementation arrangements follow a two-tier structures, with EDM (Energie du Mali) and AMADER (Agence Malienne de Developpement de l’Energie Rurale) both under the supervision of the Ministry of Mines, Energy and Water. These two structures have experience in Bank-financed projects under the Environmental and Social Safeguard Policies. EDM is the implementation agency for the Regional Project for Access to Electricity and Battery Energy Storage Systems (P167569), prepared under the ESF. It means EDM has experience in the preparation of the required ESF- instruments. The Borrower’s institutional capacity to implement the project under the ESF is considered weak, even though it has previously implemented Bank-financed projects ; and has one ESF project under preparation. The Mali Rural Electrification Hybrid Systems Project (P131084) under implementation by AMADER has some lack of safeguard performance. Indeed, the project spent 9 months without an environmental specialist, following the resignation of its former specialist. In addition, there has been an OHS incident linked to the lack of proper supervision on ESMP implementation by the project unit. During the preparation phase, environmental and social due diligence of the institutional arrangements will be carried out to assess any gaps in capacity. Any capacity gaps or strengthening measures, especially with regard to the implementation of the Environmental and Social Standards (ESSes), will be captured in an Institutional Capacity Strengthening Plan and reflected in the Environmental and Social Commitment Plan (ESCP). II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS Sep 24, 2021 Page 3 of 9 The World Bank Mali Electricity System Reinforcement and Access Expansion Project (P176633) A. Environmental and Social Risk Classification (ESRC) Substantial Environmental Risk Rating Substantial The project’s environmental risk is classified as Substantial although the impacts likely to be generated by its activities are specific to several sites, significant in number, but that can be mitigated by easily identifiable measures. The main environmental issues will be related to: (i) impact on water quality, and aquatic ecology; (ii) soil erosion by earthworks and runoff; (iii) traffic management during construction phases; iv) the disposal and management of hazardous waste during the construction phase; v) the health and safety of workers; vi) nuisances related to atmospheric and noise emissions; and (vii) the health and safety of the urban community along the side of the electricity line. The extension of distribution networks and the construction of solar parks could affect natural resources and habitat, including ecosystem services throughout the areas crossed by the electric line such as Fana, Sanankoroba and Bougouni. The hybridization of existing diesel mini-grids could produce hydrocarbon waste which, if badly managed, could affect the environment and natural resources and present a risk for the pollution of the Niger River. Social Risk Rating Substantial The project’s social risk is rated substantial, due to: (i) a sensitive social context, with insecurity and conflicts; (ii) impacts on economic activities and on land; (iii) challenges in risk mitigation and the management of Sexual Exploitation and Abuse/Sexual Harassment (SEA/SH); (iv) the high vulnerability of implementation zones and forced and child labor; (v) local community health and safety in fragile areas during civil works and the implementation of Public Disclosure project activities; (vi) the risk of effects on displaced and vulnerable people during project implementation in Bamako and regional cities; (vii) elite capture of project benefits and (viii) security issues in some project zones which can affect activities implementation. The electrification of social institutions (health centers, schools and local administrative offices) and households in off-grid rural areas will require stakeholder engagement and involvement. But the selection criteria of project beneficiaries can lead to conflicts, if not objectively defined. Vulnerable regions and vulnerable households may be relegated to the margins of project support. The exclusion of some categories of people —such as refugees in cities, youth in unemployed situations, and women in rural areas— from project employment opportunities is to be considered while setting criteria for project beneficiaries, as well as issues of discrimination. The project will need strong communication and civic engagement, with special attention dedicated to receiving feedback from beneficiaries and promoting project ownership. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: The standard is relevant. The project will finance electricity infrastructures construction/rehabilitation such as transmission lines (HV and MV), interconnected grid in the suburbs of Bamako and regional cities; HV substations, hybrid solar mini-grids, solar park and floating solar at Manantali. Sep 24, 2021 Page 4 of 9 The World Bank Mali Electricity System Reinforcement and Access Expansion Project (P176633) It is expected that the infrastructure construction will have some environmental and social impacts, which will be significant in number through several sites, but can be mitigated by easily identifiable measures. The main environmental risks are related to vegetal and ecosystem affected by electric lines and grids, pollution from hazards and electric waste, pollution form hydrocarbon, aquatics ecosystems affected, etc. The main social risks are related to land acquisition and land restriction in the frame of electric line, grids and solar park construction. Labor and working conditions on work sites, GBV substantial risks, security issues in certain areas are some additional risks linked to the project activities. The project will prepare an ESMF and a RPF to provide guidance on screening for potential risks and management of environmental and social risks. The ESMF will also provide guidance for the environmental and social assessment and types of instruments that may need to be prepared (i.e. Environmental and Social Impact Assessment (ESIA), Environmental and Social Management Plan (ESMP), etc..). The ESMF will make use of the general and sector-specific Environmental, Health, and Safety Guidelines (EHSGs) for the identified activities in relation to occupational and community health and safety. It will also include measures for addressing any potential gender-based violence and sexual harassment (GBV/SEA) risks. Given security issues noted in the country and specifically in some regional cities, it is expected that project activities can be affected by security threats and dangers on the ground. The project will undertake a security assessment to identify categories of dangers and security threats prevailing in the project area and will develop a a security management plan to guide for relevant security measures. For sites to be identified during project preparation, Environmental and Social Impact (ESIA) and potential Resettlement Action Plan (RAP) will be prepared before appraisal. Other relevant instruments like LMP or site specific instruments related to risks and impact identified will be prepared before appraisal . SEP will be prepared before Public Disclosure appraisal. The ESCP will be prepared by the Borrower and approved by the Bank before appraisal and will include the safeguard instruments required, the commitment and the timeline for the preparation of subsequent documents throughout the lifecycle of the project. Areas where “Use of Borrower Framework” is being considered: The Borrower framework will not be used. ESS10 Stakeholder Engagement and Information Disclosure To ensure that the views and interests of all stakeholders, including those of local communities, are taken into account, a Stakeholders Engagement Plan (SEP) will be developed, adopted and disclosed before appraisal. There are three categories of stakeholders : i) those who are interested in the project, such as the government ministries in charge of Energy and Finance, and associations and NGOs, members of the private sector, and so on; ii) those who could be affected directly by the project (local communities and authorities, farmers, women’s groups, youth, and so on; and iii) vulnerable groups such as Women heads of households, Men and women living alone without family support, unemployed women and children. It is important to seek stakeholder feedback and create opportunities for continued engagement, ensuring all consultations are inclusive and accessible and that they are adapted to the local context. The SEP will include a project-level grievance mechanism (GM) that has specific measures for SEA/SH. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. Sep 24, 2021 Page 5 of 9 The World Bank Mali Electricity System Reinforcement and Access Expansion Project (P176633) ESS2 Labor and Working Conditions Project workers will include direct, contract workers and primary supply workers for goods and service. An LMP will be prepared to address key issues, such as working conditions and the management of workers’ relationships, protecting the workforce, non-discrimination, a minimum age for work, measures to prevent forced labor, and occupational health and safety requirements, as well as relevant guidance for the employment of youth through the project's job placement activities. The project will include a labor GM and a template Code of Conduct with specific clauses prohibiting SEA/SH, based on national laws and regulations and the provisions of ESS2. The Borrower will ensure that the ESS2 requirements are incorporated into: (a) the contracts between the Borrower and the Contractor and any entity (including the Owner’s Engineer) supervising the Project’s civil works; and (b) the contracts between the Contractor and any Contractors’ subcontractors. ESS3 Resource Efficiency and Pollution Prevention and Management The construction and rehabilitation of electricity infrastructure and the construction of solar parks will generate substantial environment and social impact. There is a risk that air and water pollution could result from the civil works and electric hazards’ waste and hydrocarbon production. The construction will increase water using in dedicated areas. The ESMP will include mitigation measures to minimize and manage those risks and impacts. The ESMF will include guidelines for these activities. Public Disclosure ESS4 Community Health and Safety There are potentially significant health and safety concerns, particularly during the civil works, as some project intervention sites will be located in dense urban areas in Bamako and some secondary cities such as such as Fana, Sanankoroba, Bougouni, etc. Each site-specific ESMP for all the planned construction works will require contractors to secure the work site by installing fences and engaging security guards to safeguard property and protect local communities from risks associated with construction. The Borrower will be required to assess the risks posed by such security arrangements and incorporate the relevant measures outlined in the good practice note (GPN) on the use of security personnel. Security guards will be required to undergo training on the use of force and adopt appropriate conduct towards workers and affected communities.The project will prepare a security assessment by appraisal and a security action plan by project effectiveness. To address community risks linked to project implementation in dense urban areas, the Borrower will prepare, as part of the environmental and social assessment: • An emergency response plan, to be included in site-specific ESMPs; • Sexual exploitation and abuse and sexual harassment (SEA/SH) mitigation plan; • Traffic Management and Road Safety Plan; • Staff training plan in project risks and impacts on urban communities, to be reflected in the ESCP as well. Sep 24, 2021 Page 6 of 9 The World Bank Mali Electricity System Reinforcement and Access Expansion Project (P176633) ESMPs will make use of general and industry-specific Environmental Health and Safety Guidelines (EHSGs) in defining specific measures to protect communities. The trenches to be dug for the new electric lines could constitute risks for people living in the areas of project activities. Given the high density in some of the project areas, it is likely that access to homes could be affected by the works. Site-specific ESMPs will include measures to address traffic and safety issues related to the community, including putting up signposts to signal danger. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement The construction/rehabilitation of high and medium voltage electricity transmission lines, an interconnected grid, HV substations, hybrid solar mini-grids and solar parks will require land acquisition and could lead to population resettlement. At this stage, project sites are not known. An RPF will be developed to establish resettlement principles to guide the preparation of subsequent site-specific Resettlement Action Plans (RAP). For sites known during project preparation, the required RAPs will be prepared and disclosed prior to appraisal. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources The activities to be financed by the project will require using natural resources as inputs for raw materials for the installation of electric poles and civil work at mini grid sites. This will include some risks to natural resources, as the activities need to use areas that could be natural areas and the habitats of wild animals. In addition, electric lines Public Disclosure could cross through biodiversity ecosystems and the habitats of some species of wild animals. The project will apply a mitigation hierarchy during the identification of corridor lines for avoiding or limiting those impacts. All potential impacts and risks linked to biodiversity will be assessed. The ESMF will provide guidance on screening and mitigation measures to ensure that project activities do not alter or cause the destruction of any critical or sensitive natural habitats or, if affected, that dedicated measures will be developed. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities There are no known Indigenous Peoples/Sub-Saharan Historically Underserved Traditional Local Communities in the project area. ESS8 Cultural Heritage Since the project will be financing some civil works, the excavation of earth, earth movement and disturbance are to be expected, especially at electric poles and grids. These types of activities pose the possibility of encountering both known and unknown cultural heritage. For the solar park, the risks, and likely impacts, to cultural heritage will be addressed in the ESIAs. The Borrower will consult with local communities and other stakeholders, as part of the ESIA process, to identify cultural heritage that could be affected by the project. The procedures for Chance Finds will be included in the bidding documents, to be further developed in the site-specific ESMPs. Though the possibility is not considered significant, the Borrower will avoid having any impact on known cultural heritage sites and, where such avoidance is not possible, will identify and implement measures to address the impacts in accordance with the Sep 24, 2021 Page 7 of 9 The World Bank Mali Electricity System Reinforcement and Access Expansion Project (P176633) mitigation hierarchy. The Ministry of Culture will be: (i) consulted during the preparation of the ESIA; and (ii) contacted in the event of any disturbance to cultural heritage. ESS9 Financial Intermediaries This standard does not apply to the project. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE A. Is a common approach being considered? No Financing Partners No financing partners Public Disclosure B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: Actions to be completed prior to Bank Appraisal: The Borrower will prepare and disclose an Environmental and Social Management Framework (ESMF), Resettlement Policy Framework (RPF), as well as a Security Assessment and Security Management Plan, Labor Management Plan (LMP), Stakeholders Engagement Plan (SEP) acceptable to the Bank before appraisal. Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): The ESCP will include a timeframe of the preparation of the ESF-required instruments. The responsibility for each will be planned in the ESCP. The first capacity strengthening needed by both the EDM and AMADER will be included. C. Timing Tentative target date for preparing the Appraisal Stage ESRS 07-Jan-2022 IV. CONTACT POINTS World Bank Contact: Yussuf Uwamahoro Title: Senior Energy Specialist Sep 24, 2021 Page 8 of 9 The World Bank Mali Electricity System Reinforcement and Access Expansion Project (P176633) Telephone No: 5351+2218 / 223-20-702218 Email: yuwamahoro@worldbank.org Contact: Celine Sarah Marie Ramstein Title: Climate Change Specialist Telephone No: +1-202-473-0299 Email: cramstein@worldbank.org Borrower/Client/Recipient Borrower: Republic of Mali Implementing Agency(ies) Implementing Agency: EDM Implementing Agency: AMADER V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects Public Disclosure VI. APPROVAL Task Team Leader(s): Yussuf Uwamahoro, Celine Sarah Marie Ramstein Practice Manager (ENR/Social) Aly Zulficar Rahim Recommended on 13-Sep-2021 at 09:43:37 GMT-04:00 Safeguards Advisor ESSA Nathalie S. Munzberg (SAESSA) Cleared on 23-Sep-2021 at 20:23:22 GMT-04:00 Sep 24, 2021 Page 9 of 9