INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized I. Basic Information Date prepared/updated: 05/06/2010 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE Report No.: AC Basic Project Data Country: Nigeria Project ID: P Project Name: Nigeria - Public/Private Partnership Initiative Task Team Leader: Peter J. Mousley Estimated Appraisal Date: May 10, 2010 Estimated Board Date: June 29, 2010 Managing Unit: AFTFW Lending Instrument: Adaptable Program Loan Sector: General finance sector (80%);General industry and trade sector (20%) Theme: Infrastructure services for private sector development (100%) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT Environmental Category: A - Full Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) [ ] 2. Project Objectives The overall project development objective (PDO) for the APL is to increase private investment in the Nigeria PPP infrastructure market and specifically the core infrastructure sectors such as transport, power and urban development. No [] 3. Project Description This APL will be sequenced in two main phases spread over a six year period. The two phases will assist Nigeria in building a robust PPP Program. The first phase will facilitate the key capacity building and technical assistance to the ICRC and select MDAs that is needed to enable the FGN to carry-out PPP transactions according to international best practices. This capacity building and technical assistance work will include the institutional strengthening for ICRC. In addition, transaction advisors will be mobilized, pending identification of viable PPP projects, to prepare the "first-mover" PPP transaction that will be considered for funding under phase II. Phase II will provide infrastructure financing in support of PPP transactions in core infrastructure sectors. These resources will be made available through both public and private financial products. Public funds deployed for upfront capital investment will be channeled through the Viability Gap Fund (VGF); private infrastructure financing will be

2 on-lent to the Central Bank of Nigeria who will then on-lend this money to qualifying financial intermediaries. These financial intermediaries will then use this money to invest in the private side of the targeted PPP transaction. APL Phase I Component 1: Capacity Building and Legal/Regulatory Reform ($39.6 million) This component will provide resources for ICRC institution building as well as other key MDAs central to the success of the PPP Program. On the recommendation of ICRC, fourteen MDAs will be the recipients of targeted capacity building support. The identified list includes: Ministry of Works and Housing, Ministry of Transportation, Ministry of Environment, Ministry of Aviation, Ministry of Power, Ministry of Health, Federal Capital Territory, Ministry of Finance (Budget Office and the International Economic Relations Department), Debt Management Office, National Planning Commission, Central Bank of Nigeria, Bureau of Public Procurement, and Bureau of Public Enterprises. This component aims to enhance the capacity of the FGN to handle PPP deal flow at the policy, institutional and operation levels. Capacity building resources be made available in three categories- technical assistance, goods and equipment and training. The technical assistance can cover a wide variety of activity. Following a series of consultations with these MDAs, the most common requests focused on specific advisory services to assist in the development of focused policy work and project preparation. The second area of support is for systems and equipment. This includes support for ICT systems that will help MDAs manage and track PPP projects and interfaces with other PPP units within the government to share information, monitor and evaluate the progress of a PPP transaction, and build a database for private sector parties to access information on the PPP program and project pipeline. The final area of support is training to MDAs. The training component includes general PPP training for key staff, subject-specific training, workshops and study tours. The resources allocated under this component currently allots $8.5 million to ICRC, $10.4 for line ministries (Works, Transport, Aviation, FCT, Environment), $5 million for state-level PPP support, $2.5 million to co-finance Institutional Development Plans (IDPs) for participating financial institutions (PFIs), $2.5 to support ongoing, legal, regulatory and fiduciary reforms, and $9.325 for central agencies (DMO, FMOF-BOF and IERD-NPC, BPP and BPE). Aggregating across all beneficiary MDAs, the projected capacity building commitments are as follows: (i) Technical Assistance: $24.75 million; (ii) Equipment and Goods: $6.05 million; (iii) Training: $8.8 million. Component 2: PPP Preparation and Transaction Advisory Support ($62.7 million):

3 This component will provide resources for proper due diligence to be done for particular PPP pipeline transactions. Current PPP pipeline projects have had minimal or no upstream analysis that is critical in the financial and economic analysis of these projects as well as the drafting of the concession agreement. There are five sub-component to this project component: (i) Outline Business Case preparatory work ($4.5 million); (ii) transactions advisory services ($50 million); (iii) safeguards due diligence work ($3.5 million); (iv) market outreach resources ($2.5 million); and (v) embedded specialist services ($2.21 million). The overall budget for this component is based on the targeted long-list of projects, together with additional activities agreed to, but not included in the long list of transactions where the Bank anticipates providing financial support. Component 3: Project Implementation and Monitoring and Evaluation ($7.9 million): A Project Implementation Unit (PIU) will be established as separate project component to oversee the activities covered under the phases of the PPP Program. The PIU will be established within the ICRC and provide financial management, procurement, monitoring and evaluation and overall project management services. APL Phase II: Component 4: Infrastructure Financing ($200 million): This final component of the project will make available infrastructure financing to both the public and private sides of a PPP project through two instruments. The first instrument will target the public side of the PPP project by making available resources available for upfront capital expenditures through the Viability Gap Facility. An initial allocation of $50 million will go into the VGF. The second financial instrument will be a financial intermediary loan (FIL) that will make provide long-term debt financing for eligible financial intermediaries. While the FIL will be open to all eligible financial intermediaries with the guidance of ICRC the team has identified the African Finance Corporation (AFC) as a viable first mover*. The FIL pricing will be benchmarked to the longer term 10 and 20 year government bond prices as the basis for local currency lending under the FIL. $150 million will be made available through the FIL. This component will constitute the second phase of this APL project. Subject to FGN compliance with the agreed-upon triggers included in this proposed project, this second phase has an effectiveness target date of July 31st, * See Annex 4 for a detailed explanation of Component 4, the African Finance Corporation, and FIL details. 4. Project Location and salient physical characteristics relevant to the safeguard analysis Based on discussions with Federal state level stakeholders, on commitment, geopolitical representation and potential economic gain, projects to be funded in the second phase of

4 this proposed APL project will span all core infrastructure sectors. These sectors most likely include road and bridges, airports, ports, urban development such as water and sanitation, and light rail. The "first-mover" transactions will most likely be in the transport sector - roads and bridges. The perspective pipeline of projects includes roads that are located in all different geographical locations in Nigeria. As such, safeguards analysis must take into consideration all salient physical characteristics at each intervention site. These include, inter alia, waterways, rivers, canals, flood plains, at-risk and environmentally vulnerable locations that are associated with the anticipated areas of intervention. 5. Environmental and Social Safeguards Specialists Mr Chukwudi H. Okafor (ECSS4) Mr Amos Abu (AFTEN) 6. Safeguard Policies Triggered No Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: From an environmental and social safeguard point of view, the Public-Private Partnership (PPP) Program, falls into Category A. This is because although Phase I is likely to be Category B, some of the Bank-financed candidate projects in the future may have significant adverse environmental impacts that are sensitive, diverse, cumulative, irreversible or unprecendented typical of Category A projects. Phase I was originally designed to include some PPP transactions, the locations and impacts of which were not known in detail. An Environmental and Social Management Framework (ESMF) and Resettlement Policy Framework (RPF) were prepared and disclosed on November 6, The RPF was meant to address possible involuntary physical and economic displacement of the program s sub-project. The ESMF outlines the process and procedure to be followed when a project has the potential to trigger any of the World Bank safeguard policies. The project includes support for the preparation of PPP transactions, some of which will be co-financed or financed by the Bank. The ESMF and RPF will guide the preparation of environmental assessments (EAs)/environmetnal management plans (EMPs), resettlement and action plans (RAPs), and/or other

5 safeguards instruments that will be prepared for the Bank-financed transactions that will be included in Phase II of the APL. The ESMF contains details of the existing environmental laws and regulatory framework in the country; World Bank safeguard policies, anaysis of environmental and social impacts including alternatives; institutional arrangements for implementing the ESMF, capacity building needs; and public consultation carried out during project preparation. In addition, the ESMF contains a detailed checklist for screening potential PPP transactions to be financed by the Bank for their potential Environmental and Social impacts to determine: (i) Environmental Assessment (EA) category; (ii) Applicable World Bank environmental and social safeguards policy triggers; (iii) Potential for environmental and social liability; (iv) Cultural or other sensitivities; (v) Relevant stakeholders; and (vi) The nature and extent of engagement for each stakeholder category. Finally the ESMF contains an annex on a generic TOR for conducting an ESIA if and when required. The project has prepared and made publicly available both in country and on the World Bank InfoShop a completed Resettlement Policy Framework (RPF) report. The preparation of this work was accompanied by three stakeholder consultations in Lagos, Abuja and Kano. One of the key agreements reached out of these consultations was the establishment of a demand-based monitoring arrangement involving key national and local civil society groups likely to be impacted by prospective PPP projects. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The second phase of this proposed APL will finance core infrastructure projects. Projects financed by the Bank during this phase will seek to minimize any negative social and environmental impacts by following the proper safeguards procedures as well as the safeguard policies and assessments required by the FGN and this project (ESMF and RPF). It is expected that these projects will improve the overall environmental impact of population growth in Nigeria by providing well-constructed infrastructure projects that have potential effects such as improving fuel or electrical efficiency, improving road safety, improving sanitation and water delivery, and reducing environmental destruction by providing proper infrastructure services. Some of the candidate projects under phase II of the APL have the potential for significant environmental and social impacts including land acquisition. The ESMF and the RPF have clearly outlined how environmental and social issues will be handled in line with the World Bank safeguards policies. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Refer to Paragraph IIA4 below. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The Project PIU will house a safeguards specialist with specific responsibilities to oversee all safeguards work to be undertaken through the project in support of PPP

6 transactions. This will cover both social and environmental issues. It is also noted that under the legal and regulatory sub-component of activities, considerable attention is to be paid to the FGN framework to address retrenchment issues, including pension arrangements. This will build on early Bank-assisted work done with the Bureau of Public Enterprises (BPE) as part of its Privatization Guidelines. Furthermore, the PPP program is financing Environmental Impact Assessments (EIAs) for prospective PPP projects financed by the Bank and has set aside funds for Strategic Environment Assessments (SEAs) of specific sectors in furtherance of safeguards compliance. Given existing sector environmental work done to date in the case of road, it is anticipated that the SEAs will focus on ports, railways and urban water. The project will also be supporting the EIA unit in the Ministry of Environment to strengthen its capacity, particularly in respect of monitoring. This will complement the capacity building being provided to the Ministry for upstream assessment work through the recently approved Nigeria Electricity and Gas Improvement Project (NEGIP # P106172). 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. In tandem with World Bank safeguards policy 4.01 governing EA Category A projects, the ICRC recognized that stakeholder involvement is an important element of the PPP Program and the EA process and that stakeholder identification and analysis at an early stage of a project is critical in the assessment of interests, concerns, relationships, assumptions, their level of influence and the ways in which they affect project risks. To this end, the preparation of the ESMF and RPF were accompanied by three stakeholder consultations in Lagos, Abuja and Kano. One of the key agreements reached out of these consultations was the establishment of a demand-based monitoring arrangement involving key national and local civil society groups likely to be impacted by prospective PPP projects. This consultation which started early during the project preparation phase will continue during project implementation. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Date of receipt by the Bank 03/11/2009 Date of "in-country" disclosure 06/11/2009 Date of submission to InfoShop 06/11/2009 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Date of receipt by the Bank 03/11/2009 Date of "in-country" disclosure 06/11/2009 Date of submission to InfoShop 06/11/2009 Indigenous Peoples Plan/Planning Framework:

7 Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP Environment Assessment Does the project require a stand-alone EA (including EMP) report? If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? OP/BP Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank s Infoshop? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the

8 borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Peter J. Mousley 05/04/2010 Environmental Specialist: Mr Amos Abu 05/04/2010 Social Development Specialist Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Ms Alexandra C. Bezeredi 05/04/2010 Comments: Sector Manager: Ms Marilou Jane D. Uy 05/04/2010 Comments: The Sector Director is signing on behalf of the Sector Manager, who is the Task Team Leader for the Project.