Republic of North Macedonia Additional Financing (PXXXXXX) for Public Sector Energy Efficiency Project P149990 ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) Draft for Appraisal February, 2025 1 1. The Republic of North Macedonia (the Borrower) will implement the Additional Financing for the Public Sector Energy Efficiency Project through the Ministry of Finance (MoF), as set out in the Original Loan and Additional Grant Agreement (the Agreement[s]). This Environmental and Social Commitment Plan (ESCP) supersedes previous versions of the ESCP for the Project and shall apply both to the original and the additional financing for the Project referred to above. 2. The Borrower shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESSs) and this ESCP, in a manner acceptable to the Bank. The ESCP is a part of the Agreements. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the Agreements. 3. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Borrower shall carry out or cause to be carried out, including, as applicable, their respective timeframes; institutional, staffing, training, monitoring and reporting arrangements; and grievance management. The ESCP also sets out the environmental and social (E&S) documents that shall be prepared or updated, consulted, disclosed and implemented under the Project, consistent with the ESSs, in form and substance acceptable to the Bank. Said E&S documents may be revised from time to time with prior written agreement by the Bank. As provided for under the referred Agreements, the Borrower shall ensure that there are sufficient funds available to cover the costs of implementing the ESCP. 4. As agreed by the Bank and the Borrower, this ESCP will be revised from time to time, if necessary, to reflect adaptive management of Project changes or unforeseen circumstances or in response to Project performance. In such circumstances, the Bank and the Borrower agree to update the ESCP to reflect these changes through an exchange of letters signed between the Bank and the Borrower/Recipient’s Representative specified in the Agreements. The Borrower shall promptly disclose the updated ESCP. 5. The subsection on “Indicators for Implementation Readiness� below identifies the actions and measures to be monitored to assess Project readiness to begin implementation in accordance with this ESCP. Nevertheless, all actions and measures in this ESCP shall be implemented as set out in the “Timeframe� column below irrespective of whether they are listed in the referred subsection. 2 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY IMPLEMENTATION ARRANGEMENTS AND CAPACITY SUPPORT A ORGANIZATIONAL STRUCTURE 1. The PIU established under the Ministry of Finance will be maintained and with qualified staff and 1. PIU maintained, staffed and PIU/MoF resources to support management of E&S risks including full-time Environmental (1) and Social operational throughout Project (1) Specialists. implementation DBNM/EEF, in 2. The Energy Efficiency Fund (EEF) to be established under the Development Bank of North 2. EEF environmental and social coordination with Macedonia (DBNM) within the scope of Component 3 of the parent Project, shall hire and specialists to be hire within PIU/MoF maintain qualified staff to manage E&S risks of subprojects financed through the EEF, including three months after the one full-time environmental and one full-time social specialists. establishment of EEF B CAPACITY BUILDING PLAN/MEASURES Training will be provided to the E&S staff of DBNM/EEF on the ESS requirements as per the ESF, First training to be provided within PIU/MoF including: four months after the EEF is • assessment and management of environmental and social risks related to the Project established, and repeated as stakeholders’ mapping and engagement needed throughout project • community health and safety implementation • Training will be provided to Project workers on occupational health and safety, waste management and pollution prevention MONITORING AND REPORTING C REGULAR REPORTING Prepare and submit to the Bank regular monitoring reports on the environmental, social, health and Semi-annually throughout project PIU/MoF safety (ESHS) performance of the Project, including but not limited to the implementation of the implementation ESCP, status of preparation of E&S documents and implementation of mitigation measures required under the ESCP, stakeholder engagement activities, functioning of the grievance mechanism(s). D CONTRACTORS’ MONTHLY REPORTS Require contractors and supervising firms to provide monthly monitoring reports on ESHS Monthly throughout project PIU/MoF performance in accordance with the metrics specified in the respective bidding documents and implementation contracts, and submit such reports to the Bank. E INCIDENTS AND ACCIDENTS Promptly notify the Bank of any incident or accident related to the Project which has, or is likely to Notify the Bank no later than 48 PIU/MoF have, a significant adverse effect on the environment, the affected communities, the public or hours after learning of the incident workers, including, inter alia, cases of sexual exploitation and abuse (SEA), sexual harassment (SH), or accident. Provide available and accidents that result in death, serious or multiple injury. Provide sufficient detail regarding the details upon request. scope, severity, and possible causes of the incident or accident, indicating immediate measures 3 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY taken or that are planned to be taken to address it, and any information provided by any contractor Provide review report and and/or supervising firm, as appropriate. Corrective Action Plan to the Bank Subsequently, at the Bank’s request, prepare a report on the incident or accident and propose any no later than 10 days following the measures to address it and prevent its recurrence. submission of the initial notice, unless a different timeframe is agreed to in writing by the Bank ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ENVIRONMENTAL AND SOCIAL ASSESSMENTS AND/OR PLANS 1. Update with a list of new buildings, adopt, disclose and implement the Environmental and Social 1. The ESMF is updated, adopted PIU/MoF Management Framework (ESMF) that has been prepared for the original Project, in a manner and disclosed within before acceptable to the Bank and consistent with relevant ESSs. appraisal; implemented throughout the Project life 2. Cause the DBNM/EEF to adopt and implement the updated ESMF, in a manner acceptable to the Bank and consistent with relevant ESSs 2. The ESMF is adopted by the DBNM/EEF DBNM/EEF within three months after the EEF establishment 3. Screen any proposed subproject in accordance with the Environmental and Social Management 3. Subproject specific ESMPs PIU/MoF/DBNM/EEF Framework (ESMF) prepared for the parent Project and updated for the AF, and, thereafter, prepared prior to each sub- draft, adopt, and implement subproject specific Environmental and Social Management Plans project approval. Once (ESMPs), as required in the ESMF, in a manner acceptable to the Bank and consistent with ESSs. approved, subproject specific ESMPs implemented throughout Project life 1.2 MANAGEMENT OF CONTRACTORS Incorporate the relevant aspects of the ESCP, including, inter alia, subproject specific ESMPs, the As part of the preparation of PIU/MoF Labor Management Procedures, and code of conduct, into the E&S specifications of the procurement procurement documents and documents and contracts with contractors and supervising firms. Thereafter ensure that the respective contracts. contractors and supervising firms comply and that they require their subcontractors to comply with the E&S specifications of their respective contracts. Provide copies of the relevant contracts with Supervise contractors throughout contractors/subcontractors and supervision firms to the Bank. Project implementation. 1.3 TECHNICAL ASSISTANCE PIU/MoF 4 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Ensure that the consultancies, studies, capacity building, training, and any other technical assistance Throughout Project activities under the parent Project and AF are carried out in accordance with terms of reference implementation. acceptable to the Bank, that are consistent with the ESSs. Thereafter ensure that the outputs of such activities comply with the terms of reference. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES PIU/MoF Update, adopt, and implement the Labor Management Procedures (LMP) that have been developed Throughout Project for the original Project. Implementation 2.2 OCCUPATIONAL AND HEALTH AND SAFETY MEASURES PIU/MoF Prepare, adopt, and implement occupational, health and safety (OHS) measures specified in Same timeframe as for the subproject specific ESMPs. implementation of subproject specific ESMPs 2.3 GRIEVANCE MECHANISM FOR PROJECT WORKERS Maintain, and operate a grievance mechanism for Project workers, as described in the LMP Grievance mechanism maintained PIU/MoF and consistent with ESS2. throughout Project implementation ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT: Resource efficiency, pollution prevention and site-specific waste management measures, including Same timeframe as for the PIU/MoF those for the demolition, dismantling and disposal phases, will be covered under subproject specific preparation and implementation of ESMPs prepared under action 1.1 above. subproject specific ESMPs ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 TRAFFIC AND ROAD SAFETY Adopt and implement measures and actions to assess and manage traffic and road safety risks as Same timeframe as for the PIU/MoF required in subproject specific ESMPs developed under action 1.3 above. preparation and implementation of subproject specific ESMPs 4.2 COMMUNITY HEALTH AND SAFETY Prepare, adopt, and implement measures and action to assess and manage specific risks and Same timeframe as for the PIU/Ministry of Finance impacts to the community arising from Project activities including, those related to Project workers preparation and implementation of and risks of labor influx, and include these measures in subproject specific ESMPs to be prepared in subproject specific ESMPs accordance with the ESMF, in a manner acceptable to the Bank and consistent with relevant ESSs 5 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY ESS 8: CULTURAL HERITAGE 8.2 CHANCE FINDS Prepare, adopt, and implement the chance finds procedure, as specified in subproject specific Throughout Project PIU/MoF ESMPs, as set in the updated ESMF. Implementation ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN Update, adopt, and implement Stakeholder Engagement Plan (SEP) prepared for the parent project SEP updated and adopted before PIU/MoF AF Appraisal SEP implemented throughout the Project life 10.2 PROJECT GRIEVANCE MECHANISM Maintain and operate a grievance mechanism, as described in the SEP Throughout Project PIU/MoF Implementation The grievance mechanism shall be equipped to receive, register, and facilitate the resolution of SEA/SH complaints, including through the referral of survivors to relevant gender-based violence service providers, all in a safe, confidential, and survivor-centered manner. The following actions are indicators for implementation readiness: 1. Full-time environment and full-time social specialist are on board at the PIU 2. SEP, ESMF and LMP for the parent project are updated for AF and adopted 6