The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) For Official Use Only Date Prepared/Updated: 12/13/2023 | Report No: ESRSA03195 Jan 10, 2024 Page 1 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P177328 Investment Project Financing (IPF) TEES 2024 Operation Name Namibia: Transmission Expansion and Energy Storage Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Namibia Namibia EASTERN AND Energy & Extractives SOUTHERN AFRICA Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date NamPower NamPower 16-Jan-2024 30-Apr-2024 Estimated Decision Total Project Cost For Official Use Only Review Date 13-Dec-2023 180,750,000.00 Proposed Development Objective To strengthen Namibia’s transmission network and enable integration of renewable energy generation. B. Is the operation 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 Activities [Description imported from the PAD Data Sheet in the Portal providing information about the key aspects and components/sub-components of the project] The proposed Project will address key priorities in Namibia’s energy sector. The Project Development Objective (PDO) is to strengthen the transmission network, maintain grid stability, and facilitate uptake of renewable energy generation. The Project will finance the construction of a new transmission line and associated substations to strengthen NamPower’s transmission network and to increase capacity to supply new load and to wheel additional renewable power through the NamPower network. The Project will also finance the development of the second utility scale Battery Energy Storage System (BESS) in the country that will facilitate the uptake of renewable energy generation while Jan 10, 2024 Page 2 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) maintaining grid stability. The Project will also provide technical assistance (TA) for technical studies, transaction advisory, RE park infrastructure studies, and institutional capacity building. The proposed Project is structured around three components: (i) development of the Auas-Kokerboom Transmission Line (USD 100 million); and (ii) development of a utility scale BESS facility (USD 35 million); and (iii) technical assistance (USD 3.5 million) as set out in further detail in the PCN. Total project funding amounts USD 138.50 and the Project will combine a proposed IBRD loan and a proposed grant from the IBRD Fund for Innovative Global Public Goods (GPGs) Solutions (the “GPG Fund”), a proposed loan from the Green Climate Fund (“GCF”), and a proposed grant from the GCF. The GPG fund proceeds and the GCF loan will be used for developing the BESS facility to facilitate incorporation of large-scale renewable energy in Namibia’s generation mix and to mitigate the high investment cost of pioneer BESS projects in the country. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings [Description of key features relevant to the operation’s environmental and social risks and opportunities (e.g., whether the project is nationwide or regional in scope, urban/rural, in an FCV context, presence of Indigenous Peoples or other minorities, involves associated facilities, high-biodiversity settings, etc.) – Max. character limit 10,000] The proposed 400-kV Auas to Kokerboom Transmission Line (Component 1) will starting from existing Kokerboom substation near Keetmanshoop in the Karas Region of Namibia to the existing Auas Substation near Windhoek in the Khomas Region of Namibia. There are two existing transmission lines, a 220kV and 400kV line, connecting the two existing substations however the infrastructure is considered inadequate to meet the future demand needs for the country. The new 400kV transmission line largely follows the existing 220kV line corridor and is approximately 458km in For Official Use Only length with a servitude width of 80m. The transmission line transverses four major landscape units, namely the Nama- karoo basin, the Weissrand Plateau, the Kalahari Sandveld and the khomas Hochland. The project area is divided in three vegetation biomes namely a) the Nama-Karoo biome, which stretchs from the Kokerboom substation for approximately 300km, just north of Mariental; b) Mixed tree and shrub savanna biome which is transverse by the line for about 55km and the last 100km of the line is characterized by the c) Highland Savanna biome which host the highest plant diversity and endemism in Namibia. There are four vegetation types within the three vegetation biomes, namely; a) Karas dwarf shrubland, b) dwarf shrubland, c) Southern kalahari and d) highland shrubland. This vegetation types contains both endemic and nationally protected species such as the Camel thorn tree and Shepherds trees found mostly along slopes of small hills and mountains which are largely avoided by the proposed transmission line corridor. The IUCN status for Camel thorn trees is Least Concern and for Shepard's trees are Vulnerable. The Nama-Karoo and mixed trees and shrub savanna vegetation types are habitats for bird species such as the Ludwig Bustard (Endangered), Kori Bustard (Near threatened) and White-backed vulture (Critically endangered) among others. The transmission line passes along the eastern edge of the Fish River Catchment and for a great part (210 km) runs along the water shed between the Fish River Catchment and the Aub River. The section of transmission line in the north near Windhoek transverses a catchment which drains the Oanob River, however there is no flood risks. The Hardap dam is located a distance away from corridor and its wetland area is an important bird habitat for a large diversity of water birds. According to iBAT, there are no formally protected areas, key biodiversity areas or RAMSAR sites along or near the proposed transmission line corridor. A communal conservancy area; Knob !Naub; is located just north of Keetmanshoop towards Tses according to the iBAT screening tool. Cultural heritage artifacts within the area of the transmission line corridor spans the last two million years with the mid- Pleistocene and late Holocene periods being well represented. Scattered artefacts from nomadic pastoralist Jan 10, 2024 Page 3 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) settlements, pre-colonial and colonial burial sites and remains of nomadic pastoral mat house circles have been observed within the area, however none are located directly within the transmission line corridor. Traditional local communities in this region include predominantly the Nama, a Khoekhoe or Khoi groups who are related to the hunter- gatherer San groups and have occupied areas of southern Africa for thousands of years. These groups are not directly impacted by the project activities as they do not reside, nor do their livelihoods depend on territories along the proposed route of the transmission line. The location of the utility-scale 25 MW / 100 MWh battery energy storage system (BESS) (Component 2) is to be within the existing Lithop substation, based on the feasibility study that was conducted by NamPower/ Fichtner. The Lithop substation is located within close proximity of the Lithop Mine. There are no known areas of conservation or socio- economic sensitivities within or near the Lithop substation. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts [Description of Borrower’s capacity (i.e., prior performance under the Safeguard Policies or ESF, experience applying E&S policies of IFIs, Environmental and social unit/staff already in place) and willingness to manage risks and impacts and of provisions planned or required to have capabilities in place, along with the needs for enhanced support to the Borrower – Max. character limit 10,000] The Government of Namibia has not engaged in recent project finance lending with the World Bank applying either the former Safeguard Policies (SGP) or the Environmental and Social Framework (ESF). Due to the limited prior engagement, there is limited experience with the institutional capacity of the national system for environmental assessment and For Official Use Only management, including laws, regulations, procedures and their implementation. The implementing entity for this project is the Namibia Power Corporation (“NamPower”), a state-owned enterprise that is the national electric power utility company of Namibia. NamPower has extensive experience with implementation of large infrastructure projects. While NamPower has not implemented project’s applying SGP or the ESF, they do have experience implementing projects applying environmental and social sustainability policies of other development finance agencies, such as the European Investment Bank (EIB) and the African Development Bank (AfDB). NamPower has an environmental, health and safety (EHS) unit in the organization, which oversees EHS aspects of its operations and projects. However, currently there are no dedicated EHS staff assigned to the project to the management of environmental and social risk. To ensure adequate implementation and monitoring of the project’s environmental and social performance in conformance with the ESF, NamPower will be need to assign or recruit a dedicated team for the project responsible for the management, supervision and monitoring of environmental, social, health and safety (ESHS) risks and impacts as stipulated in the ESCP. Notably, NamPower also has a social responsibility unit that manages a foundation sponsoring various activities in education, envrionment and social accountability sectors. It is expected that the unit will be closely involved in carrying out periodic outreach activities to communities in project areas throughout project implementation. Component 3 of the project will support institutional capacity building. The World Bank team has provided a workshop on essentials of ESF to NamPower key staff during preparation, and will provide a more robust training to the relevant NamPower team members once they are onboard after project effectiveness. Jan 10, 2024 Page 4 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) High A.1 Environmental Risk Rating High [Summary of key factors contributing to risk rating, in accordance with the ES Directive and the Technical Note on Screening and Risk Classification under the ESF – Max. character limit 4,000] The environmental risk classification for the project is considered to be High due to the potential occurrence of critical habitat and the adverse negative impacts on an endangered bird species which may result from this project. It is anticipated that the cumulative impact of an additional line, may result in an increase mortality rate of the endangered Ludwig Bustard bird, which are prone to collision with power lines. The species populations are considered to be on the decline due to the high number of collisions with transmission lines in Namibia. Further anticipated impacts on bird species include, potential collision of the Verreaux Eagles (Least concern) due to the line passing through a known feeding and breeding area and impacts on the White back Vulture (critically endangered) which commonly occur in the southern kalahri vegetation type, in addition to probability of water bird colliding with the transmission line due to the proximity to the Hardap Nature reserve. The extent of the impacts on the birds, are not fully known and will be further quantified, and proposed mitigation technology have not yet been proven and need to be further ratified by specialist through additional site studies after project approval to inform the preparation of a Biodiversity Management Plan. At this stage the impacts on the Ludwig Bustard bird, is expected to For Official Use Only be high in magnitude, long term and impossible to avoided entirely. Other risks and impacts include occupational health and safety risk during construction (working at heights), removal of nationally protected tree species, habitat loss and fragmentation, potential erosion and sedimentation impacts on drainage lines, waste generation including hazardous wastes and disposal, noise and dust generation, community health and safety hazards associated with traffic safety, and exposure to communicable diseases and impacts associated with the establishment of labour camps such as management of solid and liquid waste. The impacts are considered to be short term, reversible and manageable through the implementation of mitigations in the respective management plans. The existing 220 KV line and two existing substations to which the transmission line will connect are currently operated and maintained by NamPower, and activities regulated under the National legislation of Namibia, therefore at it is not anticipated that there is currently any significant environmental liabilities associated with the operation of the existing line. Minor expansion construction activities will take place within the existing substations to allow for the connection of the new transmission line. The associated impacts are considered to be minor, site specific and short in duration and can be managed through mitigation measures provided in the Environmental and Social Management Plan (ESMP). Location of the activities planned under Component 2 is within the existing footprint of the Lithop substation. Impact associated with the Component 2 BESS include: (i) generation and disposal of hazardous waste associated with the type of battery technology used, (ii) battery fire and explosion risks, (iii) soil and groundwater pollution from leaks, and (vi) occupational health and safety. Impacts are considered to be site specific and manageable through the implementation of mitigations in the ESMP. The TA activities supported under Component 3 are likely to contribute to downstream impacts on risk on the environment associated with the implementation of the renewable energy infrastructure which are currently not supported by the Bank. The project preparation and type of renewable energy park to be supported under the TA are currently not known and therefore the potential impacts and risk can not be assessed at this stage. A.2 Social Risk Rating Substantial Jan 10, 2024 Page 5 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) [Summary of key factors contributing to risk rating, in accordance with the ES Directive and the Technical Note on Screening and Risk Classification under the ESF – Max. character limit 4,000] The social risk is considered as Substantial. The Project’s key interventions relate to construction of the transmission line, and design and installation of battery storage system. Downstream socio-economic effects of these activities are expected to result in improved and reliable electricity supply, potentially reduced tariffs for customers, and have other positive social impacts on the lives and livelihoods of beneficiary communities. Potential adverse social impacts will primarily occur in connection with the physical works under Component 1 and Component 2, and are related to: (i) small to medium scale land easement arrangements, as assessed during ESIA preparation, including some degree of cumulative risks related to servitude along currently existing line; (ii) social aspects of environmental impacts related to construction-related activities, including health and safety; (iii) temporary labor influx needed for construction activities, and associated low to moderate level GBV/SEA/SH risks; (iv) need for robust stakeholder engagement, outreach to stakeholder and beneficiaries (including traditional local communities such as Nama, as well as any other vulnerable and/or disadvantaged groups). There may be some temporary labor camps, but most of the workers will be local and commute to work. These social risks and impacts were confirmed in ESIA, and most of them are to be temporary, predictable and/or reversible. The project will address and manage these risks through through appropriate ESF instruments such as Stakeholder Engagement Plan, ESIA, including Labor Management Procedures. Although the spatial extent of transmission line is significant, the construction activities will not take place in densely populated areas, and the proposed route will go along the existing two transmission lines. Although some sections of the proposed line will go through conservancy areas that was traditionally used by groups such as Nama for grazing, their livelihoods will not be adversely impacted by the project as has been confirmed through ESIA process during For Official Use Only preparation. None of the project activities will cause adverse impacts on land/natural resources subject to traditional ownership/use in the area, nor will they cause any relocation to any groups. Activities also do not cause any risks to cultural heritage that may be deemed as material to the identity of any groups in the area. Nevertheless, despite of minimal to low risks of adverse impacts to traditional local communities, the project carried out consultations with participation of traditional community leaders who have not expressed any concerns on project activities. Given the above, and overall scale of the proposed project design, as well as lack of direct experience of NamPower in implementing projects under the ESF, the social risk rating is deemed Substantial. [Summary of key factors contributing to risk rating. This attribute is only for the internal version of the download document and not a part of the disclosable version – Max. character limit 8,000] B. Environment and Social Standards (ESS) that Apply to the Activities Being Considered B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant [Explanation - Max. character limit 10,000] World Bank screening of the project included discussions with NamPower and review of relevant technical documentation, including a prior Environmental Impact Assessment and updated draft Environmental and Social Impact Assessment (ESIA) report and Critical Habitat Assessment that was prepared for the 400kV Kokerboom substation to Auas Substation Transmission Line. Both Component 1 and Component 2 include activities to be supported by the project have particular relevance to the Environmental and Social Standards (ESSs). These activities Jan 10, 2024 Page 6 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) include civil works and recruitment of labor related with the construction and installation of the Kokerboom substation to Auas substation Transmission Line (Component 1) and the installation of BESS (Component 2) that are anticipated to result in adverse environmental and social risks and impacts that must be managed in accordance with the ESSs. Component 3 will support Technical Assistance activities which will support capacity building and studies for project preparation of other investments under the NamPower Capital Projects list and studies for a renewable energy park. There are no associated facilities relevant to this project at this stage. The updated ESIA report assessed the key environmental and social risks to include, impacts on nationally protected tree species (Vachellia erioloba), impacts on an endangered bird species (Ludwig bustard) which triggers the occurrence of critical habitats (CH) (ESS6). The bird species is of particular concern due to the high collision rate with power lines which may lead to population decline. The impact on the bird populations is not fully determined at this stage and requires further studies to be conducted. The ESIA include a preliminary Biodiversity Management Plan (BMP) which will be updated with data from the additional studies to inform the final design and preparation of a robust long term monitoring program as part of the Biodiversity Management Plan (BMP) after project approval. The updated ESIA analyzed the two route alternatives and concluded that the impacts on both lines are considered similar in terms of impacts on birds; while the eastern, preferred route, avoids an area with critically endangered vultures, the western alternative route is approximately 20km shorter and avoids critical habitat, however due to technical challenges, that may impact grid security, the western route is not considered viable. An draft Environmental and Social Impact assessment is under preparation for the BESS at Lithop as part of the feasibility and will be finalized and disclosed after project approval. The potential environmental and social impacts and risks associated with the BESS location is considered to be moderate to low due to its location within an existing substation footprint. The civil works will require the recruitment of local labor and For Official Use Only may pose OHS risks to project workers under both Component 1 and 2 and will therefore trigger the requirements for the preparation of a Labor Management Plan with Grievance Mechanism (LMP) and OHS plan in line with the requirements of ESS 2. Both project areas for Component 1 and potentially Component 2 (if the preferred location is confirmed) are not densely populated. It is anticipated that there may be some influx of job seekers and a requirement for construction equipment and materials to be important and transported via road to the various construction areas. It is therefore anticipated that there is likely to be an impact on community health and safety however is anticipated not to be significant. Provisions will be made in the ESMPs to mitigate any identified impacts on community health and safety in line with the requirements set out in ESS 4. ESS5 impacts are limited only to easement impacts, and there will no land acquisition, physical and/or other economic displacement of people. Thus, no Resettlement Policy Framework/Resettlement Action Plan was necessary, and instead, the ESIA addresses easement risks and impacts. ESIA also includes draft Labor Management Procedures that address labor risks and impacts. The impact of Component 1 on these potential heritage sites were assessed in the ESIA and a Chance finds procedure has been prepared as part of the ESMP. To ensure adequate stakeholder engagement from an early onset of the project, the Borrower has prepared a draft Stakeholder Engagement Plan (SEP) proportional to the nature and scale of the project and associated risks and impacts that will be implemented throughout the project period. SEP will be publicly disclosed by the NamPower and the World Bank before project appraisal. Consultations have been conducted in June and July of 2023, and draft SEP contains necessary documents and brief minutes of the main discussions with stakeholders. All relevant instruments prepared by the NamPower have been captured in the Environmental and Social Commitments Plan (ESCP) that will be disclosed by the World Bank by Appraisal, and re- disclosed upon finalization following negotiations. The ESMP makes provision for ESHS aspects to be incorporated in the bidding documents. Procurement of contractors by NamPower will take into consideration ESHS capacity in consideration of ESF requirements. Following the selection of contractors by NamPower, the selected contractors will be expected to prepare Contractor’s ESMPs that incorporate and address the requirements of the ESIA instruments Jan 10, 2024 Page 7 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) prepared by the Borrower, including the ESIA and ESMPs, LMP, OHS plan and other relevant documentation prior to the initiation of civil works. Similarly, Terms of References will be prepared for the studies supported under the TA Component 3 and will incorporate the relevant ESS requirements once more details of the studies are known. ESS10 - Stakeholder Engagement and Information Disclosure Relevant [Explanation - Max. character limit 10,000] The objective of the stakeholder engagement is to incorporate views from all stakeholders through meaningful consultations and feedback, improve the environmental and social sustainability of the project, enhance its acceptance, and make a significant contribution to successful project design and implementation. A draft SEP has been prepared by NamPower, and will be disclosed before appraisal. Draft SEP identified the following key stakeholders: Namibia’s Ministry of Mines and Energy, local governments at the respective localities, vulnerable and disadvantaged groups, including traditionally local communities such as Nama people and their representatives, community leaders and representatives, and civil society organizations (CSOs). Given that the proposed transmission line will go through an area of important biodiversity and natural habitat, engagement with environmental protection stakeholders (both government affiliated, and non-government accountability NGOs in Namibia) is important, and will be strengthened at appraisal stage as well. During preparation, NamPower conducted two rounds of consultations with local communities along the proposed transmission line route. There is no densely populated areas along the route, and since most of the social impacts are related to land servitude, it was discussed extensively with communities. They were made aware of the project design, ESF instruments that are being prepared, as well as For Official Use Only information how to reach NamPower should any comments or concerns arise at any point of project preparation and implementation. NamPower has developed a SEP that is proportional to the nature and scale of the project and associated risks and impacts. Draft SEP contains key information with the minutes of consultations, as well as feedback received from stakeholders. As discussed in the draft SEP, NamPower also invited representatives of traditional local communities (such as Nama peoples and other communities that led nomadic pastoralist livelihood in some of the areas along the route), and they have been duly consulted. The Kriess Village, occupied by Nama people was also targeted during this engagement, since it is a settlement adjacent to the proposed route, but not directly impacted by its footprint. NamPower ensured that consultations to date have been conducted in culturally appropriate manner, and attested in the SEP that they have been inclusive and accessible (both in format, language and location) and conducted through channels that are suitable in the local context. During implementation, the project will ensure that the needs and voices of vulnerable people (female-headed households, elderly, youth, people with disabilities, or any other disadvantaged communities) are heard through inclusive consultation and participation to ensure that they can equally participate and benefit from the Project. Component 3 of the project contains TA activities aimed at enhancing socio-economic impacts of Nampower’s activities on population, including through enhancing its consistent engagement with beneficiaries. The Project will equally ensure that respective provisions on gender equality and the mitigation of gender-based violence in the energy sector will be implemented; to avoid potential adverse impacts but also to ensure strong participation of women in the development of the country’s energy sector. As such, NamPower is the Recipient of a recipient-executed trust fund, activities of which include policy alignment across various policies of Nampower to ensure that the NamPower existing Code of Conduct, Conflicts of Interest, and NamPower grievance procedure are aligned by with the recently endorsed Gender Action Plan and NamPower Gender Equality, Diversity and Inclusion Policy. Building upon NamPower current company-level complaint mechanism, a project-level Grievance Redress Mechanism (GRM) has been described in the SEP to provide an avenue for complaints regarding with project activities. The GRM would include mobile-phone based applications, and in- Jan 10, 2024 Page 8 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) person centers for complaint registration and resolution, and a free hot line linked with a call center. The GRM would address each area of the feedback value chain: (i) uptake, (ii) sort and process, (iii) acknowledge and follow up, (iv) verify, investigate, and act, (v) monitor and evaluate, and (vi) provide feedback to the complainant as well as to NamPower. NamPower will have to coordinate closely with its regional offices on GRM. ESS2 - Labor and Working Conditions Relevant [Explanation - Max. character limit 10,000] The project will engage direct and contracted workers, and primary supply workers. As stated in the Labor Management Procedures prepared by NamPower, no community workers will not be involved in project activities. The project will adhere to Namibia’s Labor Laws and the Bank's ESS2 requirements. The project will have construction workers who will be contracted for the anticipated civil works under Components 1 and 2, and trained technicians for the installation and maintenance of BESS. The total number of workers will be around 100, and will involve installation of temporary labor camps. Most of the workers will be locally sourced. To address labor risks, NamPower has prepared Labor Management Procedures (LMP) in line with the requirements of ESS2. . LMP sets out measures proportional to the labor risks and impacts and activities and impacts and provide detailed information on the work terms and conditions. LMP includes guidelines for developing workers code of conduct, employment terms and conditions, principles regarding nondiscrimination and equal opportunity, the establishment of workers’ organizations, explicit rules regarding prohibition of child and forced labor, mitigation measures against GBV/SEA/SH, as well as aspects of Occupational Health and Safety (OHS). Child and forced labor are not anticipated to be significant For Official Use Only risks in the project as they are not generally present in the construction or energy sectors in Namibia.. Workers may be exposed to OHS risks during construction, maintenance, and operation activities such as; injuries from falls or slips when working at heights or from falling objects e.g., roof top; injury or fatality from heavy construction equipment; Improper use and lack of availability of the required Personal Protective Equipment (PPE), during line stringing, and accidental inhalation and exposure of toxic respirable dusts and pollutants etc. The ESMP makes provision for the contractor(s) to prepare an OHS plan, as stipulated in the ESCP, which meets the national requirements for OHS, the WB ESS2 and World Bank Group General EHSG and sector specific EHSGs namely the Guidelines on Electric Power Transmission and distribution; prior to commence with construction works. The contractor will make sure that workers are made aware of the potential hazards and risks associated with each activities, through daily task based risk assessments, and provided with adequate and appropriate Personal Protective Equipment. The OHS requirements for the project will be incorporated in the bidding documents that will be prepared for the projects as part of the procurement processes under both Component 1 and Component 2. The project will envision appropriate measures of protection and assistance to address the vulnerabilities of project workers, including specific groups of workers, such as women, people with disabilities, migrant workers, and children (of working age in accordance with ESS 2). Some of the OHS impacts are associated with the implementation of construction, installation and maintenance of power distribution lines and BESS. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant [Explanation - Max. character limit 10,000] According to the draft ESIA prepared for Component 1, the potential impact on natural resources is considered to be negligible. Materials (aggregates) will be obtained from licensed commercial sources, where as the water will be sources from existing boreholes along the proposed transmission line route. It was estimated that approximately 140 Jan 10, 2024 Page 9 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) cubic meter of water will be needed per month for a period of 36 months for both the construction and worker accommodation. The water needs for the project will be spread over approx. 460 km of the transmission line route, and not sourced from one location only, and is therefore not considered to be likely to have a impact on water needs of a particular community. Water will be obtained, by agreement, from local farmers along the transmission line route, with adequate surplus supply available. The raw material requirements for this project is not considered to be significant and was therefore not further assessment. Waste to be generated during the construction of the transmission line is considered to be minimal and consist of small quantities of concrete waste, metal, and domestic waste (food stuff, paper etc). Waste will be collected on a daily basis by the work fronts and transported back to the contractors camp from where it will be taken to municipal waste facilities located in Windhoek, Keetmanshoop or Mariental, depending on the location of the contractors camp. The draft ESMP contains measures for preventing and address soil and surface water pollution which may occur as a result of construction activities (cement mixing, vehicle maintenance, accidental spills during refueling etc). The construction of the transmission line is not considered plant intensive therefore the anticipated impacts associated with soil and water pollution is not considered as an area of concern. The contractor will be required to prepare, in addition to a Construction ESMP, specific management plans such as a Waste Management Plan, Hazardous Substances Management Plan and Emergency Preparedness and Response Plan including provisions for accidental spills; prior to commencement of construction within the timeframe stipulated in the ESCP. The risks of batteries causing potential soil and groundwater pollution are not considered to be of concern at this stage and will be further confirmed as part of the preliminary ESIA study prepared for Component 2. Necessary provisions in the design of the BESS facility (Component 2) will mitigate soil and groundwater pollution, in the unlikely event that it does occur. End-of-life batteries from the BESS will be a hazardous waste that must be For Official Use Only managed in accordance with the EHSGs and GIIP. The final disposal of the end-of-life batteries have not yet been established, and will likely need to be exported to facilities equipped for recycling. The end-of-life disposal requirements, will be further investigated as captured in the ESCP and procedures prepared by NamPower to ensure safe end of life disposal in line with international practices. ESS4 - Community Health and Safety Relevant [Explanation - Max. character limit 10,000] The area along the proposed transmission line route (Component 1) is largely unpopulated. The BESS installation site is yet to be confirmed, however if the preferred location at the Auas Substation is retained it is expected that the construction may result in the increase in vehicle traffic within the vicinity of the substation and Windhoek and therefore a potential impact of increased collisions between construction vehicles and pedestrians. In addition, the contractor will be required provide accommodation for non-local workers, it is anticipated that if construction camps are not to be established that the workers will be accommodated in the near by town. It is anticipated that due to the high unemployment rate in Namibia (36%) that there may be an influx of people seeking job opportunities. Influx in addition to the introduction of contractor workers may lead to constraints of health services, an increase in community exposure to communicable and noncommunicable diseases, GBV and SEA/SH and clashes. The updated ESIA will further identify and assess any potential impacts on community health and safety that the project may have and require preparation of an ESMP, as needed, during implementation that will include mitigation measures for any potential impacts on communities due to labor influx. Due to the route being largely unpopulated the ESIA considered the potential traffic impacts on public to be low. As part of the ESMP, the contractor will be required to include traffic Jan 10, 2024 Page 10 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) management measures as part of it OHS Plan to address driver behavior to mitigate potential collisions between construction vehicles, pedestrians and other road users. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant [Explanation - Max. character limit 10,000] As discussed in ESIA, proposed project activities will not result in any physical resettlement as defined under ESS5. The current design is aimed to avoid homestead and other infrastructure. The proposed transmission line traverses three (3) regions (namely Khomas, Hardap and //Karas Regions), and will impact 88 farms. 24 of those farms are state- owned enterprises, while the remaining ones are owned by private individuals and companies. While preparing ESIA, NamPower looked into the nature of impacts and confirmed that all of the impacts will be limited to land servitude only. There are no significant livelihood impacts. No land was acquired in direct anticipation of the project either before the World Bank involvement, and hence, there is no need for retroactive audit of such activities. Taking into account the nature of these relatively minor impacts such as easement/servitude (and no land acquisition and/or physical resettlement), the project addressed these risks and impacts through preparing land impacts section as part of ESIA, instead of resettlement policy framework and resettlement action plans. As confirmed in the land impacts section of the ESIA, the proposed route of the project follows an existing 220kV transmission line for most of the route. The need for land acquisition and impacts on land use, livelihoods and assets has been avoided by: (i) aligning the route parallel to an existing line; and (ii) adjusting the servitude to avoid any homesteads or other structures, as well as vistas that are important to farm owners where this was possible. The entire length of the proposed For Official Use Only transmission lines is estimated to be 461 km. The servitude will be 80 m wide for the entire line an estimated 12 m width. Grazing and cultivation of fields with associated farming activities may be accommodated within this area, except for the 12 m strip, which is needed during construction. ESIA describes in detail the nature of servitude, as well as easement processes under Namibia’s laws, as well as compensation processes which are aligned to principles of ESS5. ESCP will require NamPower to provide periodic updates to the Bank team (as well as through updating land section in the ESIA) as easement processes make progress during implementation. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources [Explanation - Max. character limit 10,000] The transmission line passes through three main vegetation types, which are considered widespread over Namibia. The Dwarf Shrubland and Karas dwarf shrubland vegetation types are of particular concern, due to it being considered ideal habitat for the Ludwig Bustard (EN) bird species. The critical habitat assessment (CHA) confirmed the potential occurrence of critical habitat for the endangered birds species. The CHA indicated that based on available information it was determined that the areas near the Kokerboom substation, Mariental town and area just north of Kalkrand town could be seen as critical habitat for the endangered Ludwig Bustard birds. The biodiversity and critical habitat assessment highlighted that the direct impact of the line on critical habitat is limited, but that the presence of the line as a barrier in the habitat poses a collision threat to birds already prone and impacted by power line collisions. Based on available collision data, it is estimated that mortality rate will be approx. 350 birds per annum (462 x 0.66 birds/km/year =) of which 91% is considered to be the particular EN bird species of concern. The eastern route is preferred over the western (alternative route) as it avoids the known vulture breeding areas south of Rehoboth and the bustard habitat in dwarf shrub savanna according to the critical habitat assessment report, but will still have an Jan 10, 2024 Page 11 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) impact on the bustard species to an extent. The CHA highlighted the Hardap dam as an Important Bird Area. The dam is located approximately 10km from the transmission line and forms part of an irrigation scheme, and therefore the probability of water birds colliding with the transmission line is considered to be high and will be further investigated during the additional studies. The extent and significant of the project impacts on the Ludwig Bustard birds are not fully know yet and can only be quantify once the additional field studies, as stipulated in the biodiversity and critical habitat assessment has been completed. The studies will be undertaken after project approval to inform the preparation of the monitoring requirements in the Biodiversity Management Plan as stipulated in the ESCP.A preliminary BMP was prepared as part of the ESIA and set out the mitigation measures and costs proposed by the specialist at this stage. This Preliminary BMP will be updated to include the studies as mentioned, and will set out a short (pre-construction), medium (construction) and long term (post-construction). The avifauna specialist report proposed the lines of the existing 220kV line and 400kV line to be on at the same height in addition to stagger the 400kV line with the 220kV line, by placing the pylons mid-span of the adjacent line, to form a visual barrier, in addition to retrofitting both lines with line markers in key areas. This mitigation have not yet been proven effective to reduce bird collisions, therefore as part of the additional studies the specialist will be required to consult with other specialist to ratify the mitigation and to inform the final design. As part of the preparation of the BMP, the specialist will consult with other stakeholders, such as conservation groups, bird institutes (for example FritzPatrick Institute, Birdlife etc) to ratify the mitigation and monitoring approach. The biodiversity and critical habitat report set out the plan of study to obtain the additional data. NamPower has previously partnered with Namibia Nature Foundation with an aim to address electricity supply and wildlife (birds) interaction in Namibia with the objectives to, monitor, report, research and manage electricity supply and wildlife interactions, and proposed considerations for wildlife management for the For Official Use Only electricity network in Namibia. Since the BESS will be located within an existing substation, it is not anticipated that there will be any impacts on biodiversity. This will be assessed as part of the ESIA and mitigation measures incorporated in the Component 2 ESMP. The project aims to support the ongoing efforts of this partnership through TA support under Component 3, with an aim to identify biodiversity sensitive areas and mitigation measures to assist with retrofitting and future planning of its electricity network to reduce bird collisions. The ESIA further highlighted that a national protected tree species (Least Concern) will be directly impacted by the project. The impact is considered to be specific to an isolated area along the line, and can be mitigated to an acceptable level through measures in the BMP. The number of trees directly affected will only be known once the line has been surveyed. There are not impacts or risks associated with biodiversity or critical habitats for Component 2, BESS, due to its location within an existing substation footprint. Impacts on vegetation clearing is considered manageable through the implementation of mitigation measures provided in the ESMP. For the TA studies that will be supported under Component 3, NamPower will need to ensure that the scope of the studies consider aspects of the ESSs in particular potential impacts on biodiversity and critical habitats consistent with the requirements of ESS6. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Relevant Local Communities [Explanation - Max. character limit 10,000] The indigenous peoples of Namibia include San, Nama, Ovahimba, Ovazemba, Ovatjimba and Ovatwa communities. Together they represent around 8% of the total population. While the areas of the proposed transmission line (as well as substations) avoid densely populated territories, IPs in Namibia also reside in various regions throughout the country, including desert territories, and hence ESIA will need to determine presence or absence of IPs, and risks and impacts on their collective attachment to land, if any. According to NamPower, there are no significant presence of Jan 10, 2024 Page 12 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) nomadic/pastoralist communities on proposes project sites, and updated ESIA looked further into it and confirmed it. Although some sections of the proposed line will go through conservancy areas that was traditionally used by groups such as Nama for grazing, their livelihoods will not be adverely impacted by the project as has been confirmed through ESIA process during preparation. None of the project activities will cause adverse impacts on land/natural resources subject to traditional ownership/use in the area, nor will they cause any relocation to any groups. Activities also do not cause any risks to cultural heritage that may be deemed as material to the identity of any groups in the area. Nevertheless, despite of minimal to low risks of adverse impacts to traditional local communities, the project carried out consultations with participation of traditional community leaders who have not expressed any concerns on project activities. Since the project’s downstream impacts will bring positive socio-economic outcomes for Namibia, broad range stakeholder engagement and inclusion of communities into decision making processes of the project is important, including through outreach to vulnerable and disadvantaged groups. NamPower already carried out two rounds of consultations focusing on transmission line component, and ensured that representatives of indigenous groups were invited and attended the meetings. Preparation of SEP, as well as carrying out consultations was done with due consideration of Namibia’s diverse populations, and in an inclusive and culturally appropriate manner. ESS8 - Cultural Heritage Relevant [Explanation - Max. character limit 10,000] The updated ESIA report indicated that there are some areas of archaeological important within the study area, but a distance away from the proposed route alignment. The archaeological sites include a Pre-colonial burial cairn, colonial For Official Use Only era graves and a modern farm cemetery. The project activities will not have a directly impact on these identified sites, however could be impacted by movement of construction vehicles if not controlled. The ESMP therefore made provision for the identification and demarcation of these sites as no-go areas. The Namibian legislation further protects any damages to structures of cultural heritages and requires permits to be obtained for disturbance. The ESMP made provision for a chance find procedure that need to be followed in the event that any items of potential cultural heritage is uncovered during the construction phase. The ESIA indicated that there are no impacts on any intangible cultural heritage within this project. ESS9 - Financial Intermediaries Not Currently Relevant [Explanation - Max. character limit 10,000] Currently not relevant. FIs are not anticipated to be involved in the project. B.2 Legal Operational Policies that Apply OP 7.50 Operations on International Waterways No OP 7.60 Operations in Disputed Areas No B.3 Other Salient Features Jan 10, 2024 Page 13 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) Use of Borrower Framework No [Explanation including areas where “Use of Borrower Framework” is being considered - Max. character limit 10,000] The use of the borrowers framework is not considered for this project. The project will be prepared and implemented in accordance with requirements of the ESF, ESSs and applicable national and regulatory requirements of Namibia. Use of Common Approach No [Explanation including list of possible financing partners – Max. character limit 4,000] No common approach is being considered B.4 Summary of Assessment of Environmental and Social Risks and Impacts [Description provided will not be disclosed but will flow as a one time flow to the Appraisal Stage PID and PAD – Max. character limit 10,000] The Environmental and Social Risk Rating for the project is high. The environmental risk rated is considered high due the anticipated impacts on the endangered Ludwig Bustard bird populations which are on decline due colliding with the transmission in addition to the probability of water bird collisions due to the close proximity of waterbodies including the Hardap dam, an Important Bird Area. Available documentation including the EIA prepared in 2020 and the updated draft ESIA, prepared in line with the requirements of the ESF in addition to a biodiversity and critical habitat assessment report, among others were assessed as part of the Banks due diligence. The biodiversity and critical habitat assessment For Official Use Only highlighted the areas near the Kokerboom substation, Mariental town and area just north of Kalkrand town as potential critical habitat for the endangered Ludwig Bustard birds. The direct impacts on critical habitat will be limited, but the presence of the line has a potential significant impact on the Ludwig Bustard bird population. Based on available collision data, it was estimated that mortality rate will be approx. 350 birds per annum (462 x 0.66 birds/km/year =) of which 91% is considered to be Ludwig Bustard birds. The full extent of the impact on the bird populations in the project area is not fully know yet and can only be quantify once the additional field studies, as stipulated in the biodiversity and critical habitat assessment has been completed after project approval. The ESIA and specialist report proposed mitigation measures to reduce impacts associated with bird collisions to an acceptable level, however the proposed approach have not yet been proven, and will need to be further ratified through engagements with specialist, to inform the design, as part of the additional studies as mentioned. A Biodiversity Management Plan which sets out a short (pre-construction), medium (construction) and long term (post-construction) monitoring measures will be prepared based on the information of the additional studies and consulted with stakeholders. The project will further support the NamPower/Namibia Nature Foundation partnership to continue monitoring and researching electricity supply and wildlife interactions with an aim to propose management measures to incorporate in NamPower electrification network to reduce bird/wildlife mortalities. The Component 1 will have a direct impact on Camel thorn trees (Least concern), a national protected tree, which occur in an isolated area along the route alignment. The number of trees to be impacted can only be confirmed once the alignment has been surveyed. The remainder of the impacts associated with the project is considered to be predictable and can be mitigated through design and implementation of adequate mitigation measures. Impacts include among other: (i) vegetation damage and introduction of alien and invasive species, (ii) habitat loss and fragmentation, (iii) occupational health and safety risk such as working at heights, (v) erosion and sedimentation impacts on drainage lines and water courses. NamPower has also prepared draft easement plan for impacts under transmission line component, as well as draft Stakeholder Engagement Plan (SEP). The draft easement plan covers impacts in three regions, namely Jan 10, 2024 Page 14 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) Khomas, Hardap and Karas. Most land impacts concern private and communal farms, and relate to land use restriction/servitude and some loss of livelihoods (the latter is mostly of negligible scale as commercial farming is expected to be largely undisturbed by works). Impacts and risk associated with the Component 2 BESS are considered to be moderate to low and manageable through the implementation of mitigation measures to be proposed in an ESMP. Impacts and risks include among others: (i) generation and disposal of hazardous waste associated with the type of battery technology used, (ii) battery fire and explosion risks, (iii) soil and groundwater pollution from leaks, and (vi) occupational health and safety. The main social impacts include, among other, land easement arrangements, minor labor influx and associated GBV/SEA/SH risks. An ESIA and ESMP proportionate to the nature and potential risks and impacts are under preparation for Component 2 and will be finalized after project approval. C. Overview of Required Environmental and Social Risk Management Activities C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by implementation? [Description of expectations in terms of documents to be prepared to assess and manage the project’s environmental and social risks and by when (i.e., prior to Effectiveness, or during implementation), highlighted features of ESA documents, other project documents where environmental and social measures are to be included, and the related due diligence process planned to be carried out by the World Bank, including sources of information for the due diligence - Max. character limit 10,000] Undertake the additional avifauna studies as set out in the Plan of Study, after project approval but prior to For Official Use Only construction, which is required to inform the preparation of the Biodiversity Management Plan and to ratify the proposed mitigation measure. A competent Ornithologist will be appointed to conduct surveys along selected areas on both the existing 220kv and 400kV transmission lines over both a wet and dry season, as far as reasonably possible. Data from the survey will be used to inform the estimate population size of the Ludwig Bustards and also to verify or update the estimated frequency rate for bird collisions per kilometer of transmission line. Areas prone to bird collisions will be earmarked for fitting of line markers. As part of the study and preparation of the BMP, specialist, and organizations with experience in bird-power line collisions, will be consulted on the proposed monitoring program and mitigation measures (staggering of pylons) being proposed. A BMP will be prepared after the completion of the studies, and approval of the project but prior to construction. The BMP will set a short (pre-construction), medium (construction) and long term (post-construction). The BMP will in particular focus on monitoring of key critical habitat areas and sensitive bird populations, to assess the effectiveness of the mitigation measures that has been proposed thus far (staggering and line markers) with an aim to achieve net gain. The Project will use the Bank Procurement document and will therefore address E&S aspects. NamPower will be required to supplement the E&S requirements in the Procurement documents by highlighting the project specific E&S and health and safety requirements which contractors should consider when preparing a bid. It will be ensured that the bid evaluation criteria pays particular attention to the contractors EHSE track record, understanding of ESHS risks and approach to address these if the contract is awarded. Contractors will be required to prepare a Construction Environmental and Social Management Plan with various sub- plans, prior to commencing with construction. The sub-plans include but are not limited to an Occupational Health and Safety Management Plan, invasive plants eradication plan, waste, and hazardous substances management plan, Jan 10, 2024 Page 15 of 16 The World Bank Namibia: Transmission Expansion And Energy Storage (P177328) rehabilitation plan etc. These plans will set out the contractors approach to identify, mitigate and manage E&S risks and impacts in line with the Project ESMP and contractor scope of work. III. CONTACT POINT World Bank Task Team Leader: Nadia Taobane Title: Senior Energy Specialist Email: ntaobane@worldbank.org TTL Contact: Carla De Nobrega Job Title: Energy Specialist Email: cdenobrega@worldbank.org IV. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 For Official Use Only Web: http://www.worldbank.org/projects V. APPROVAL Task Team Leader(s): Nadia Taobane, Carla De Nobrega ADM Environmental Specialist: Johanna Martina Whitfield ADM Social Specialist: Aimonchok Tashieva Jan 10, 2024 Page 16 of 16