FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Sustainable Energy Development and Access Project (SEDAP) Federated States of Micronesia Environment and Social Management Framework (ESMF) for Component 3 – Weno Solar Power Plant Energy Division National Department of Resources and Development Government of the Federated States of Micronesia 17 October 2018 FINAL 1 Prepared for: Energy and Research Division of the Department of Resources and Development FSM Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Plan (ESMP) Quality Information Document Sustainable Energy Development and Access Project (SEDAP) Environmental and Social Management Framework for Component 3 - Weno Solar Power Plant Date 17 October 2018 Prepared by Sam Sesega, PSES Consult; tuissesega@gmail.com Revision History Revision Revision Date Details A 23 October Integration of WB comments; B 9 October Updated with WB comments received; update following consultations of draft ESMF in Chuuk and Pohnpei. C 17 October Updated with WB comments addressed; and reports of additional consultations in Chuuk, and consultations in Kosrae, Yap and Pohnpei added. 2 Prepared for: Energy and Research Division of the Department of Resources and Development ACRONYMS AP Affected Persons BESS Battery Energy Storage System CIU Centralized Implementation Unit CoP Code of Practice CPUC Chuuk Power Utility Company DCP Designated Contact Person DoFA Department of Finance and Administration DP Displaced Person DNRD Department of Natural Resources and Development ED Energy Division EE Energy Efficiency EPA Environmental Protection Agency ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FSM Federated States of Micronesia GBV Gender Based Violence GM General Manager GRM Grievance Redress Mechanism IDA International Development Association IEE Initial Environmental Examinations KIRMA Kosrae Island Resource Management Agency KPUC Kosrae Power Utility Company LED Light Emitting Diode MOU Memorandum of Understanding NEP National Energy Policy NEPA National Environmental Protection Agency NGO Non-Governmental Organisation O&M Operation and Maintenance OHS Operational Health and Safety PCR Physical Cultural Resources PIU Project Implementation Unit PUC Pohnpei Utility Company YSPUC Yap State Power Utility Company [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Table of Contents # Section Page 1. Introduction 2 2. Project Description 3 2.1. Background 3 2.2. Project Development Objective 3 2.3. Project Components 3 3. World Bank Safeguards 5 3.1. Environmental Assessment (OP/BP 4.01) 6 3.2. Indigenous Peoples (OP/BP 4.10) 6 3.3. Involuntary Resettlement (OP/BP 4.12) 6 4 Environmental Context 6 4.1. FSM Legislation and Policies 8 4.2. Potential Environmental Impacts 8 5. Anticipated Social Impacts 9 5.1 Socio-cultural context 10 6 Potential Social Impacts 13 6.1. National level Impacts 13 6.2. Site level Impacts 13 7. Environmental and Social Management Process 15 8. Land Access & Acquisition Arrangements 16 9. Institutional Arrangements and Responsibilities 18 10. Organizational Arrangements and Responsibilities for ESMF 19 Implementation 11. Public Consultation 20 12. Disclosure 21 13. Grievance Redress Mechanism 21 14. Budget and Safeguards Financing 24 15. Monitoring and Reporting 24 Annexes 1 References 25 2 Stakeholder Engagement Plan (matrix) 26 3 PCR – Chance Finds Procedures 33 4 Chuuk Stakeholder Consultations report 34 5 Kosrae Stakeholder Consultations report 40 6 Pohnpei Stakeholder Consultations report 43 7 Yap Stakeholder Consultations report 46 Tables 1 Project Components and Budget 3 2 Summary of Potentially Significant Environmental Impacts 9 3 Implementation and Supervision Units 19 4 Safeguards Instruments and Responsible Agencies 20 5. Grievance Redress Mechanism 22 6 Indicative Budget and Safeguards Financing 24 Figures 1 Subprojects/Activities Screening and Safeguards Implementation 15 Process 2 Flow Diagram of Grievance Redress Mechanism 23 1 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 1. Introduction 1. This Environment and Social Management Framework (ESMF) sets out the principles, policies and procedures for environmental and social protection that the National Government of the Federated States of Micronesia (GoFSM) and the World Bank (Bank) agree to employ in the conduct of the Sustainable Energy Development and Access Project (SEDAP). 2. The ESMF outlines the project, its components, the socio-cultural context, possible environmental and social impacts and their management. The document builds on the laws and regulations of the GoFSM and its four component States and integrates the requirements for the five World Bank Safeguards Policies triggered. These are:, OP/BP 4.01 Environmental Assessment, OP/BP 4.04 Natural Habitats; OP/BP 4.10 Indigenous Peoples, OP/BP 4.11 Physical Cultural Resources and OP/BP 4.12 Involuntary Resettlement. 3. The applicability of this ESMF is limited to planned solar PV installations in Weno under Component 3. This is because sites for the solar installation(s) are not yet known hence the need for guidelines to assist safeguards planning from the early stages of site screening, categorization, selection, identification of appropriate safeguards instruments and assessments and the preparation of the required safeguards instruments. 4. For other SEDAP physical investments such as in PUC, KUA and YSPSC under Component 1, 2 and 3, and in Weno (distribution network extension) and the outer islands of Satowan and Udot, the sites are known, the impacts identified and measures for their mitigation have been assessed and documented forming an ESMP that is binding on all Utilities and contractors involved in project implementation. 5. The ESMF will be officially disclosed by both GoFSM and WB for consultation and comment, and may be amended as agreed between the partners. The contact person for this document is: Mr. Hubert Yamada Assistant Secretary, Division of Energy, National Department of Resources and Development Email: huberty08@yahoo.com Tel : +691 320 5133 2 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 2. Project Description 2.1. Background 7. The GoFSM formally requested a US$30-million equivalent grant to create the SEDAP and support the implementation of priorities identified in part by the FSM Energy Master Plan Final report prepared through the first WB funded FSM project, the Energy Sector Development Project (ESDP) and published in April 2018. In February 2018 the World Bank (WB) approved the Concept Note for the preparation of the SEDAP. ESDP commenced implementation in 2014 and will end in 30 September, 2019. 8. The World Bank is one of the key partners supporting the GoFSM in its efforts to establish conditions for sustainable and reliable energy provision for economic growth and poverty alleviation. The country expressed the desire for the Bank to remain engaged in the energy sector, following on from ESDP to help the country achieve its long-term sector goals. Consequently, SEDAP will mainly follow recommendations from the four State Master Plans (produced by ESDP) which identified various investments and options to be undertaken to increase electricity access in FSM and improve electricity service quality in each state. 9. The proposed SEDAP will focus on: (i) improving PUC performance, including solutions for the thermal power plant and implementation of grid enhancement in the state of Pohnpei and unsecured waste oil storage in PUC (ii) increasing access and RE, particularly in the state of Chuuk; (iii) enabling RE solutions in Yap and Kosrae; (iv) providing technical assistance and support to improve sector governance, regulatory framework, accountability, financial performance, hiring, training and retention strategy for workforce development, facilitation of private sector participation, development of potential pipeline access and renewable energy projects; and (v) targeting sustainability through studies, assessments and a program to disseminate improved cookstoves to mitigate health issues related to air pollution. 2.2 Project Development Objectives 10. The SEDAP’s Development Objectives are:  to improve the reliability of electricity supply;  expand access to electricity and  scale-up renewable energy generation in the project areas. . 2.3 Project Components 11. The project comprises the following five components:: Table 1: Project Components and Budget US$ # Component million 1 Improving Reliability of Electricity Supply in Pohnpei 12 2 Expanding Access to Electricity in Chuuk 3 3 Scaling-up Renewable Energy Generation in Chuuk, Yap 10 and Kosrae 4 Institutional Strengthening and Capacity Building in the 2 Energy Sector 3 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 5 Technical Assistance and Project Management 3 TOTAL 30 Component 1: Improving Reliability of Electricity Supply in Pohnpei (IDA US$12 million). This component will address PUC’s challenges with insufficient available generation capacity, which is way below the installed capacity, to stably cover peak demand, and unscheduled shutdowns of power supply and unsecure waste oil storage. The component will finance (i) medium speed diesel gensets of about 7.5 MW total, which will serve base load and provide appropriate redundancy; (ii) consultancy work for feasibility studies and supervision; (iii) associated grid facilities in Pohnpei to improve the operational performance and generation capacity of PUC; (iv) waste oil storage tank and spill containment (v) removal of obsolete generation equipment and (v) electromechanical and electronic equipment, such as a power system SCADA, measuring, monitoring, and protection devices, and converters to help PUC improve its operational performance. Component 2: Expanding Access to Electricity in Chuuk (IDA US$3 million). This component will support CPUC to expand access to electricity in Chuuk, where the access rate is only 27% due to the remoteness of several islands. Specifically, this component will finance: (i) the construction of a mini-grid system on the islands of Udot and network expansion on the island of Satawan; (ii) the installation of several solar home systems on the islands of Weno, and (iii) consultancy work for feasibility studies and supervision. Udot, Satawan and Weno are prioritized based on population, needs, cost-effectiveness and other donors’ programs. Component 3: Scaling-up Renewable Energy Generation in Chuuk, Yap and Kosrae (IDA US$10 million). This component will support CPUC to install the state first utility-scale solar power plant to reduce fuel cost of diesel-based power generation and support CPUC in access expansion on the outer islands. The component will also support YSPSC and KUA to significantly mitigate the curtailment of the existing RE output and enable the integration of more variable RE through storage capacity and high speed gensets. The component will finance (i) a 2 MW Solar PV power plant in Weno to and CPUC has already identified the land for 2MW scale solar PV, (ii) the installation of about 2 MWh1 of battery capacity for KUA, and (iii) the installation of an 830kW2 high speed genset in the existing diesel power plant in Yap. For each of these investments, the component will also finance consultancy work for feasibility studies and for supervision during the project implementation. Component 4: Institutional Strengthening and Capacity Building in the Energy Sector(IDA US$2 million). This component is designed to improve sector governance and 1 KUA has already experienced the curtailment of solar power, but has an intention to overcome this issue and scale up renewable energy. The battery size will be designed to accommodate the existing solar and the foreseeable future solar. The size will further be refined after detailed study is completed. 2 YSPSC has recently installed wind turbines and has a plan to install further renewable. However, this could cause some difficulties in frequency control. The Master Plan suggests adding 830kW scale high speed genset for the stable power supply. 4 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) financial performance, achieve self-sustainability, and PUC’s proper asset maintenance strategy and will include the following three sub-components: Sub-component 4.1: Sector Governance: This sub-component will support: a) PUC’s management structure and capacity to enhance O&M and corporate functions; it may also include the signature, implementation and monitoring of a Performance Management Contract (PMC)3; and b) FSM to advance appropriate solutions through analytical work and TA in various areas. A preliminary identification of potential areas include: (i) instruments to create an institutional, legal, and regulatory framework conducive to a self-sustained sector; (ii) assessment of the private sector’s readiness for private-public partnerships instead of the current public-sector supply approach in order to enable solution to maximize finance for development for future projects; (iii) assessments for competitive and gender neutral selection of key management positions and the participation of independent administrators in Board, (iv) a collaboration program with local schools, colleges and media, aimed at increasing the numbers of female candidates who apply for technical vocational roles, and (v) utility financial recovery plans, if needed. Sub-component 4.2: Efficient Clean Cookstoves. This sub-component will finance: (i) a detailed household survey assessment of the challenges and opportunities for intervention in selected islands of FSM to address health (gender disaggregated), environmental, livelihood, gender and climate change issues, (ii) awareness campaign through social mobilization to ensure that potential users are aware of the fuel-saving and health benefits associated with clean cooking, and potentially (iii) cooking demonstration workshops using different type of cookstoves and fuels to test consumer preferences and willingness to acquire the stove, and (iv) definition of broad lines and components of a large scale intervention on household energy for cooking in the FSM, which consider women’s health benefits and employment opportunities. Component 5: Technical Assistance and Project Management (IDA US$3 million). This component will finance (i) contract staffing for the project, including a project manager, consultancies and non-consultancies, office and other equipment, travel and operational costs, and training and workshops, (ii) recruitment of a full-time Energy Adviser (EA) to assist and support the Secretary of Resources and Development (SoR&D) on energy sector policy matters and development strategy, and (iii) support utilities on respective activities implementation, including provision of support on coordination, Monitoring and Evaluation (M&E) and reporting. 3. World Bank Safeguard Requirements 12. In addressing World Bank safeguard policy requirements, this ESMF builds on environmental and other applicable law and regulation in the Federated States of Micronesia, including State Constitutions and Codes, and incorporates any requirements of World Bank policies that are not addressed in local law. The primary objective of the partners is to ensure that the project does not cause unacceptable harm to society or environment. Policies applicable to this project are summarized below. 3 a Performance Management Contract (PMC), agreed by relevant parties (PUC, Pohnpei state and others) to be implemented and monitored based on the recommendations provided by the Graduates School USA’s report on PUC. 5 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 3.1. Environmental Assessment (OP/BP 4.01) 13. This policy provides the requirements and procedures for the environmental assessment of the Bank’s lending operations. Inter alia, it requires (i) detailed qualitative and quantitative analysis to determine project impacts, (ii) determination of tangible measures to prevent, minimize, mitigate or compensate for these adverse impacts, (iii) public consultation and disclosure as part of the Environmental Assessment (EA)4 process and (iv) requires an EMP to address set of mitigation, monitoring and institutional measures to be implemented during design, construction, operation of maintenance phases of the project. 3.2. Natural Habitats (OP/BP 4.04) The conservation of natural habitats, like other measures that protect and enhance the environment, is essential for long term sustainable development. The Bank therefore supports the protection, maintenance, and rehabilitation of natural habitats and their functions in its economic and sector work, project financing, and policy dialogue. The Bank supports, and expects the Borrowers to apply, a precautionary approach to natural resource management to ensure opportunities for environmentally sustainable development. 3.3. Indigenous Peoples (OP4.10) 14. Indigenous Peoples policy provides guidance to ensure that the indigenous people benefit from development projects. It requires the Government to engage in a process of free, prior and informed consultations with indigenous peoples, as described by the policy in situations where indigenous peoples are present in, or have collective attachment to, the project area. 15. Most of the population of the Federated State of Micronesia is indigenous, in the sense of having an ancestral attachment to their land, which is still important in the livelihoods of the 78% who are rural dwellers. This reliance on natural resources, and both customary and legal rights are recognized under Federal and State Constitutions, and is taken into account in the process of project design and identification of land requirements for physical investments which sites are already confirmed, and others to be assessed during project implementation. Social assessment for these activities will identify any indigenous peoples’ issues that are not addressed under policy governing involuntary resettlement (see OP4.12 below). 3.4. Physical Cultural Resources (OP/BP 4.11) This policy addresses physical cultural resources, which are defined as movable or immovable objects, sites, structures, groups of structures, and natural features and landscapes that have archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Physical cultural resources (PCR) may be located in urban or rural settings, and may be above or below ground, or under water. Their cultural interest may be at the local, provincial or national level, or within the international community. Physical cultural resources are important as sources of valuable scientific and historical information, as assets for economic and social development, and as integral parts of a people’s cultural identity and practices. 4 Includes social assessment 6 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 3.3. Involuntary Resettlement (OP 4.12) 16. The Involuntary Resettlement policy addresses direct economic and social impacts from project activities that may cause involuntary taking of land resulting in (i) relocation or loss of shelter, (ii) loss of assets or access to assets or (iii) loss of income sources or livelihoods. Projects may also lead to involuntary restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of the displaced persons. 17. The principles of involuntary resettlement will be taken on board in the scoping and screening of subprojects and the development of feasibility studies. If they have resettlement issues, then plans will be prepared during the project to address them. The processes that will be followed are described in the Resettlement Policy Framework (RPF). 4. Environmental Context 18. FSM is comprised of four states, from east to west; Kosrae, Pohnpei, Chuuk, and Yap (Figure 1). Each island or group has its own language, customs, local government, and traditional system for managing marine resources. The FSM has both high islands and atolls, and islanders have a strong dependence on coral reefs and marine resources, both economically and culturally. The islands support three basic reef formations: fringing reefs, barrier reefs, and atolls, which correspond to the stage of reef development at each island5. 19. The nation is home to some of the most biologically diverse forests and coral reefs in the world. The proximity of Micronesia to the Indo-Malay region and the relative nearness between the islands themselves enabled the high islands and reefs to act as bridges for the migration of terrestrial and marine species. The distance between islands also separated individual populations, causing high levels of endemism6. 20. FSM is vulnerable to the effects of climate change. Predicted higher sea levels will affect coastal resources and infrastructure, and the atoll islands are particularly vulnerable to salt water intrusion and coastal erosion. More variable and extreme winds / storms, and higher temperatures are also predicted6, which will affect coral habitats and agriculture, and may also affect biodiversity. 21. Each state in the FSM has extensive forest cover, although on the low atoll islands, and the littoral slopes of the high islands, the forest cover is better described as an agro-forestry complex with a scattered secondary forest on long-fallow within the traditional gardening system.7 22. Scattered use of forest resources occur across all states. Timber is cut for subsistence 5 Hasurmai, M., et. al. 2008. The State of Coral Reef Ecosystems of the Federated States of Micronesia. Chapter 14 of the State of Coral Reef Ecosystems of the United States and 6 Federal and State Government. A Blueprint for Conserving the Biodiversity of the Federated States of Micronesia. 7 http://www.sprep.org/att/IRC/eCOPIES/Countries/FSM/7.pdf 7 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) farmsteads for construction and firewood. Mangrove timber is used for handicrafts, and both upland and mangrove timber is used for furniture making. 23. Agriculture is the most important primary activity in the nation because of its contribution to employment, wage income, export earnings, and subsistence production. Copra remains the ubiquitous cash crop throughout the FSM. 24. Coral reef biodiversity and complexity is high within the reefs of the FSM and this diversity decreases in scale from west to east away from the center of marine diversity in Southeast Asia. FSM's exclusive economic zone covers some 2.6 million square kilometers of ocean which contain the world's most productive tuna fishing grounds8. 25. Land and marine biological resources and ecosystems are at threat from deforestation, erosion and sedimentation, pollution from agricultural and urban sources, and overfishing / destructive fishing. 26. Conventional western approaches to conservation--government management and enforcement of large-scale conservation areas--have been ineffective due to land and marine ownership patterns, the difficulties inherent to regulating activities in extremely remote locations, and the limited capacity of government natural resource agencies5. 4.1. Environmental Legislation and Policies 27. Environmental policy and regulation occurs at Federal and State level. At the Federal level, the Division of Environment and Sustainable Development, within the Office of Environment and Emergency Management, develops national policy and has responsibility for national legislation such as the Federated States of Micronesia Environmental Protection Act. Each State has an Environmental Protection Agency (EPA) and has autonomous responsibility for State Environmental Impact Assessment (EIA) Regulations and other environment-related legislation. Their jurisdiction extends seaward to the 12 mile limit. The Division of Environment and Sustainable Development does not have a supervisory or enforcement powers over the State EPA. There is however close co- ordination and cooperation between the State EPAs and the Division. For example, the Division supports the State EPA to review complex EIA and the State EPA share knowledge and tools with each other. 28. All of the State Regulations relating to EIA are similar. New development activities go through an ‘Initial Assessment’ to determine whether a comprehensive EIA is required. The Initial Assessment may comprise a simple checklist, or a more detailed baseline environmental description and impact assessment, depending on the nature and scale of the proposal. This is lodged with the State EPA to determine whether a comprehensive EIA is required, and the scope of the EIA. This decision is based on whether there are potentially ‘significant’ impacts, as listed in the regulations. 29. The EIA regulations cover a wide range of environmental and social aspects and include impacts on cultural resources, impacts on human health, depletion of natural resources, and hazardous substances risks. Public hearings and consultation are part of the process. 8 http://www.fsmgov.org/info/natres.html 8 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 30. The State EPAs are also responsible for permitting of earthworks (and issue permits for any land developments requiring land disturbances), air quality, waste management and watershed management / water allocation. Activities undertaken by the Government, or its agencies, are assessed under the National Act, otherwise, activities are assessed under the State level Acts and regulations. 31. The Division of Environment and Emergency Management is currently updating the 2009 policy on Disaster Risk Reduction and Climate Change. The overlapping issues with the energy sector include promotion of renewable energy generation and energy efficiency. 4.2 Potential Environmental Impacts 32. Whilst the sites for the Weno solar power plant are not yet known, the nature of the technology and its requirements for installation and operation provides a glimpse of the potential impacts it will generate. 33. A solar power plant of 2MW capacity is estimated to require at least 2 hectares of land, excluding land for access, and for locating other supporting facilities. Land clearing, levelling and shaping will remove existing vegetation, expose bare soil to the elements during construction, generating dust during dry weather and accelerated soil erosion from surface run-off in wet conditions. 34. Excavation and earth moving associated with facilities and access construction, and solar modules installation, pits, mounding, stockpiling, berms, and the transporting and installation of fills, will further contribute to accelerated erosion. Nearby water bodies including streams will be at risk of contamination if erosion and run-off is not properly controlled. 35. Solid and liquid wastes will also be generated during the construction period, some of which may be hazardous and pose a long term risk of ground and underwater source contamination. Debris from cleared vegetation will need removal from site to approved sites. 36. Cleared vegetation or habitats within the area of fill may have endemic biodiversity of significance for conservation, nationally and globally thus the risk of local and global extinction. If sites are isolated, construction of access road will extend land transformation further, expanding the project’s impact zone. Table 2: Summary of Potentially Significant Environmental Impacts Technology / Activities Potential Impacts Investment type Loss of vegetation cover and natural habitats of conservation significance as a result of land Grid connected clearing solar PV Installing and Accelerated erosion during construction from installation on land maintaining panels. earthmoving activities and potential for leased by CPUC discharges to nearby water bodies. 9 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Dust, noise, air quality degradation during construction PCR chance finds Accumulation of hazardous and municipal waste Contamination from inappropriate disposal of used batteries and panels Benefits from displacing diesel fuels. 5. Anticipated Social Impacts 37. The project will contribute to social and economic development, which is currently energy-constrained. All electricity consumers - institutional, industrial, commercial and domestic - will eventually benefit from more affordable and sustainable tariffs than would be possible without the project. In Weno, Chuuk, the proposed solar power plant will increase Chuuk’s power generation capacity, allow expansion and access to electricity in rural communities and provide stability and reliability of supply to existing consumers. Women and children are particularly benefited by improved electricity services, critical for modern education, health and communications services, for relieving the drudgery of household tasks, and for facilitating small income-generating activities that help families. 38. This section provides the socio-cultural context and an analysis of potential impacts from the Solar Investments on Weno. 5.1. Socio-cultural Context 39. The social assessment that follows is informative not only of Weno but FSM as a nation. It is derived from secondary sources9 to profile the beneficiary population, inform a framework for stakeholder consultation, for incorporating socio- economic information for planning, implementing and monitoring activities yet to be designed. For such future activities, consultations will following during the preparation of EAs that will yield more specific information to inform project preparation. 5.1.1. Population 40. Prior to European contact, modern transport and communications, the present-day Federated States of Micronesia were part of a group of islands whose pan-Micronesian subsistence and seafaring populations were in sporadic contact through circular migration to trade with each other, participate in ceremonies, intermarry, give and receive mutual support in times of natural and other disasters. The indigenous people of the Federated States of Micronesia, who constitute the vast majority of the population, are ethnically Micronesian, and speak distinct 9 The most recent complete published body of census-based statistics derives from the 2000 census, reported in 2006; see http://www.spc.int/prism/country/fm/stats/. This data is used where analysis of 2010 census data is not yet to hand. Preliminary results of the 2010 Census of Population and Housing are available at the Office of Statistics, Budget & Economic Management, Overseas Development Assistance and Compact Management, http://www.sboc.fm. Some data used is from the Sample-based 2005 Household Income and Expenditure Survey (HIES). 10 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) dialects of Austronesian languages that are part of the Malayo-Polynesian family. Though there is broad cultural similarity amongst the States, in the relative historical isolation of the islands, different customs, local practices and strategic interests have developed according to island, village, class, kinship and religious affiliation. These, rather than ethnicity or indigenous status per se, are generally the basis of differences within and between States. Most of the population is now Christian, with only 4.6% either professing another or no religion. 5.1.2. Social Organization 41. Urban population in 2010 accounted for only 22% of the total in the Federated States of Micronesia. The family and village are still central to social organization and identity. Especially on the high islands, society is stratified by descent group affiliation, title, age and land relationships, which are the traditional basis of wealth and the conspicuous generosity that is the mark of a leader. However, disease and depopulation in the colonial period eroded the powerbase of traditional leaders, which depended on a large labor-force to work lands. The coral atolls are generally more egalitarian, and place more emphasis on specialized knowledge and achievement, though age and gender are still important social markers. Churches are now focal points of community interaction. 5.1.3. Land 41. In pre-colonial times, land was generally plentiful, though with higher population densities in Chuuk than in the other States. Since the dramatic decline in population due to post-contact epidemics, and the continuing overall trend to decline due to later marriage, lower birthrates and migration, population pressure has not been a large issue in the country, though ownership, use, control and inheritance of particular plots may still be locally sensitive. 42. Ownership of land and aquatic areas varies between States. In Chuuk, most land and aquatic areas are privately owned and acquired through inheritance, gift or, recently, by purchase. Land cannot be sold to non-citizens of the FSM, thus these land and aquatic ownership patterns greatly influence the strategies and actions required to sustainably manage the natural resources of the nation. 43. Some States have made a concerted effort to have land titles registered, and to declare unregistered land as Government land. Custom mechanisms for ascertaining land rights have played an important part in this process. In some States, Government land may be designated as Homestead land for eligible clans and individuals and could be legally allocated as replacement land if eminent domain powers were exercised in downstream projects. 5.1.4. Households and Housing Characteristics 44. Most households comprise nuclear or extended families, with around one quarter providing a home for a parent or another relative. In 2000, average household size was 6.7, with a tendency to smaller households on Yap and larger in Chuuk. Female headed households accounted overall for 18% of the total, though 27% in Yap. 45. Most homes in 2000 were single detached dwelling units. A further 9% of dwellings had an attached unit; only 2% were located in apartment blocks. Half had piped water and electricity, but only a quarter had any form of sanitary waste disposal, except in Kosrae, where over 70% enjoyed this facility. By 2010, four out of five had an improved drinking water 11 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) supply, and three out of five an improved toilet facility, and household size had dropped to 6.1, an indication of the trend to depopulation. 5.1.5. Gender and Social Status 46. In 2010 the sex ratio was 103 males to 100 females. Micronesian societies are matrilineal, and inheritance of land and other assets is traditionally through women. However, the senior male of the lineage, often a woman’s older brother, is generally the manager of landed estate, and males exercise most political and economic power. The senior male decides on inheritance, which may be exercised in favor of matrilateral or patrilateral kin, within or outside the village. This ambilateral allocation of inheritance by family heads is a potential source of disagreement about land. Partly for this reason, the traditions of village exogamy and cross-cousin marriage, which tend to consolidate alliances and interests in clan land, are still a cultural preference in many areas. Women traditionally defer to men, and the sexes do not generally mix freely in social situations. 47. In the subsistence sector, traditional division of labor assigns domestic chores, and the care of infants and the elderly to women and children. Women plant, weed and harvest subsistence produce, weave mats and tend livestock while men perform the heavy agricultural labor tasks such as construction, ground-breaking, ditching and fencing. Generally, women fish and gather in the lagoons, while men fish outside reefs. In the non-subsistence economy, both sexes have new opportunities to which education and language skills are important enablers of access. 48. The Constitutions of the nation and of each individual State specifically exclude discrimination or exclusion on grounds of sex, language, national origin, ancestry, race, in most cases social status, religion and in one case dialect. The FSM has acceded to the Convention for the Elimination of all forms of Discrimination Against Women (CEDAW). 5.1.6. Education 49. Literacy levels are generally high. Over 95% of those 15-24 or older are literate, with women’s rates at 96% slightly higher than men’s at 94.2% in 2000. Overall, girls have higher participation rates than boys at both elementary and high school levels, though Yap, the most traditional State, features lower high school enrolment rates for girls than boys. In 2000, 11.7% of persons over 25 were college graduates. This rose to 11.8% in 2010. 50. Due to the multiplicity of indigenous languages and dialects, which though related, are not always easily mutually intelligible, English has been adopted as the sole official language, and is the medium of instruction in high schools and tertiary institutions. Good English language ability is an advantage in the employment market. In 2010, 75.9% over the age of five were literate in English, with higher levels amongst the young and those of economically active age. 5.1.7. Employment and Incomes 51. Overall, 78% of the population is rural, and subsistence farming and fishing are still the main means of livelihood. Almost half the women and two thirds of the men of economically active age participate in the labor force. One third of working men, and more than half working women (56%) are in unpaid occupations. The 2010 unemployment rate for men is 15.5%, and 17% for women. While most households engage in agricultural production and fishing (94.6% and 70.7% respectively in 2010), only around 1% produces exclusively for sale. Around 10% sells some of their production. 12 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 52. Of those aged 15 or more with cash income in 2000, 43% received wages or salaries, 21% had income from their own business, 41% received remittance income and 7% received social security or other income from Government. Public administration, education, health, social work and utilities supply accounted for just over half of paid jobs. The only other significant sector was wholesale and retail repair and supply of vehicles and household goods, which employed 13% of the work force. 53. Average household income in 2005 was $13,421. Female headed households earned over $2,000 less than the average, while foreigners (non FSM residents) earned almost $7,000 more than the average. These figures include cash and non-cash income, so are not necessarily a good indication of purchasing power for cash goods. Per capita GDP on a Purchasing Power Parity basis was estimated at US$3,165 in 2012. 5.1.8. Willingness and Ability to Pay for Power 54. Willingness and ability to pay (WATP) for power is related to the adequacy of cash incomes. While food poverty is estimated at below 10% of households in all States, and at only 2% in Yap, the HIES 2005 data shows an incidence of basic needs poverty afflicting 29.9% of the population overall, and 24.4% of households. Kosrae has the highest rate, at 34.5% of the population, and Chuuk the lowest, at 28.7%. Gender of the head of household shows no strong correlation with the incidence of poverty. 55. Biomass in the form of wood and coconut husk products, generally a free good, is used for local cooking; in most outer island communities, biomass is the primary energy source. Expenditure on fuel, light and water in 2005 accounted overall for 5.1% of household expenditure, with a range amongst the States from 5% (Chuuk, Kosrae and Yap) to 6% (Pohnpei)10. While these rates are within the range of energy costs per cent of expenditure normally found bearable for household consumers in developing countries, the poorer may have limited capacity to increase their usage or expenditure to benefit from improved power availability. State-level Social Assessment will further investigate local energy use and WATP issues. 6. Potential Social Impacts 6.1. Potential State and National Level Impacts 56. Following in the wake of an the WB funded Energy Sector Development Project (ESDP), the Weno solar power facility will form part of SEDAP’s overall contribution to reducing Chuuk’s (and FSM’s) dependence on imported fossil fuels, and as a result, alleviating its economic vulnerability to petroleum price volatility and external shocks. Increased use of solar energy will generate savings from imported diesel that could be reallocated for expanding electrification further and or to invest in other priority sectors. 57. FSM will at the same time contribute to combatting accelerated global climate change by reducing its overall greenhouse gas (GHG) emissions, fulfilling part of its international obligations as a party to the Framework Convention on Climate Change and the Montreal Protocol. 10 2005 HIES Figure 6; Household Expenditure by State 13 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 6.2. Potential Site Level Social Impacts 58. Whilst the sites for the Weno solar power plant are not yet known, the nature of the technology and its requirements for installation and operation provides a glimpse of the potential impacts it will generate. 59. During project construction, nearby residents and other sensitive receptors will be exposed to dust and noise during construction, likewise erosion and contaminated waterbodies and streams. Solar power parks are relatively quiet when operational but solar panels are known to leak chemicals and particulates into the environment early in their operational life, and when damaged, pose a health risk to site workers and visitors. 60. On the positive side, the solar power plant will increase Weno’s generation capacity and reduce diesel expenditure, enabling the CPUC to extend electrification to new areas in Weno and outer islands. Increasing solar generation on the grid will improve the reliability of supply for existing consumers. For new consumers, having access to electricity will have transformational impact on development in general at the community level, and on living conditions and lifestyles at the household level. Such conditions at the household level include improved lighting, electronic communication and neighborhood security. During project construction, employment opportunities will be generated. 6.2.1. Land access 59. Land is expected to be leased from interested private landowner(s) for the Weno solar power facility. A few sites have been presented for CPUC consideration by land owners and initial screening for environmental, social, economic and technical feasibility is in progress, and will be likewise for other potential lands to follow, prior to confirmation. Details of steps to be taken in land acquisition via a lease arrangement are set out in SEDAP’s Resettlement Policy Framework (RPF) and reiterated in Section _ of the ESMF. 60. CPUC prefers land acquisition via a lease arrangement for at least 20 years. Potential lands being screened are idle and unused thus leasing for the solar power plant will make economic use of an otherwise unused resource. 61. If the leased lands are occupied, legally or otherwise, physical displacement of people will be unavoidable. Economic displacement will also result if there are losses in crops, jobs and other sources of livelihoods. Loss of access to publicly shared resources, and to legally protected areas by Affected People (AP’s) are important considerations under WB OP/BP 4.12 Involuntary Resettlement. Financial compensation and or other resettlement assistance will be provided for AP’s, as appropriate. 6.2.2. Cultural insensitivities, Gender Based Violence (GBV) and Violence Against Children (VAC) 64. Contractors may opt to employ specialized foreign experts and locals from other islands during the construction phase. Local people who miss out on expected job opportunities may feel resentful and hard-done by. Mounting social tensions will create volatile situations that can flare into larger conflicts, disrupting or delaying project construction, dividing local communities and potentially undermining community support for the Project. 14 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 65. Overseas experience in other WB projects report gender-based violence (GBV) and violence against children (VAC) often in connection with workers camps but also independent of them. It is a risk to local women and children and a challenge for contractors and their personnel to uphold an appropriate code of behavior reflecting respect for local people and their culture. 6.2.3. Health and Safety 66. Workers engaged in the various tasks associated with solar PV installation and maintenance will be exposed to the typical occupational hazards of dust, vibration, heat, rain, noise, fumes from vehicles and machinery, smoke and hazardous substances. Solar modules contain dangerous materials such as lead, silicon tetrachloride, cadmium, selenium, and sulfur hexafluoride, the latter a potent greenhouse gas. Lead is hazardous while cadmium telluride is a known carginogen. Prolonged exposure affects lungs and kidneys, and can be fatal. 66. People scavenging for valuables are reported to, without safety gear, cut and burn out valuable materials from broken or expired solar panels, at the same time spilling contaminants into their water, air, and lungs. 6.2.4. Cumulative Impacts 67. Cumulative impacts associated with proposed SEDAP activities are largely to do with waste oil accumulation, safe storage and disposal. The activities associated with solar power plant proposed for Weno will more likely contribute to the continued accumulation of hazardous waste from broken and expired solar panels (which have an average life span of 20 years). This is a common issue in all FSM states and a worsening one in the absence of any viable options for reuse, recycling or safe disposal. 7. Environmental and Social Management Process 68. The Environment and Social Management Process takes into account the relevant laws and policies of FSM and Chuuk State and the World Bank Safeguards Policies. It describes the steps to take once a potential site is known for project activities. 7.1. Sub-project Screening & Safeguards Implementation Process 69. All land submitted by interested land owners for the solar power plant in Weno will be screened and assessed for potential environmental and social impacts. The following screening process will be followed based on WB criteria under the safeguards policies triggered, in particular, the Environmental Assessment and Involuntary Resettlement policies. This is explained through Figure 1 below, and described in the subsequent sections. 15 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Figure 1 Chuuk 2MW Solar Panel Installation and Operation - Screening and Safeguard Implementation Process Steps Task Responsible Agent 1 Advertise Expressions of Interest in local media or other CPUC formal and informal means. 2. For each expressed interest confirmed – CIU Safeguards  Conduct initial EA and IR screening and Specialist categorization. Refer to Annex 3 for Screening template.  Assign Category (A, B or C), and identify safeguards instruments required. 3 If Category A, consult WB Task Team for review and CIU Safeguards advice. If Cat A is confirmed by WB, the site is assessed Specialist unsuitable and is eliminated from further consideration. 4 If Category B or C, the PIU will instruct CPUC to proceed CPUC with land negotiation. 5 On successful signing of lease agreement, undertake the CIU Safeguards following: Specialist  Prepare ESMP (based on ESMF)  Prepare ARAP (if recommended in Step 2) (based CIU Safeguards on RPF), at the same time as the ESMP. Specialist  Conduct joint consultations for ESMP and ARAP CIU Safeguards during preparation. Specialist and CPUC  Disclose draft ESMP and draft ARAP for CIU Safeguards comments. Specialist and CPUC  Finalize ESMP and RAP incorporating relevant CIU Specialist comments from disclosure consultations, including WB comments.  Obtain WB approval for the updated ESMP and ARAP  Include ESMP as part of bidding documents for CIU Safeguards works contractor and in his/her contract. Specialist  Finalize and disclose updated ESMP and ARAP CIU Safeguards Specialist  Implement ARAP CIU Safeguards Specialist/CPUC  On completion of ARAP implementation, request PIU Project Manager Bank NOL with the appropriate supporting documentation. 16 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 7 On receipt of Bank NOL, Issue Notice to Proceed with PIU Project Manager / awarding civil works contract. Contractor 8 ESMP will form part of the Contractors contract and Safeguards Specialist compliance will be monitored by the Safeguards Specialist and others assisting him (CPUC engineering division) The Steps in the above process are further elaborated on in the following section. Step 1: Advertise Expressions of Interest for potential sites CPUC is advertising and inviting expressions of interest from landowners, with some interests already received. For each confirmed EOI, CPUC will undertake preliminary assessment for technical and financial feasibility to gauge site suitability for solar power generation. Step 2: For each confirmed EOI, and after the sites have undergone a preliminary assessment for technical and financial feasibility, the Safeguards Specialist will then initiate assessment for EA and IR categorization. This will involve site assessments, land due diligence, identifying potential show stoppers, estimating the number of legal and illegal occupiers and assets if any, estimating of social cost to any dependent population(s) of losing access and or use of the land and its resources, PCR and potential social and environmental impacts. At the end of Step 2, and based on this collected information, the Safeguards Advisor will have the information to make an informed categorization of either A, B, or C. The safeguard instruments to be prepared corresponding to the assigned category are identified. Step 3: If it’s a Category A, the Safeguards Specialist will consult WB Task Team for review and advice. If following consultation, Category A is confirmed, then the site is not suitable and is eliminated. Step 4: For Category B or C, the Safeguards Specialist will recommend that CPUC proceed with land negotiations in earnest. The land negotiation will be driven by CPUC and the signed lease agreement must be clear about the treatment of any losses incurred by legal occupiers as a result of relocation. Sometime, any such losses can be avoided by giving them time to relocate. Alternatively, these losses are factored into the final lease price with clear responsibilities defined on which party will deliver them. The basic principle remains that no one should be left worse off as a result of the Project. (Illegal occupiers is be dealt with under the RPF and ARAP). Step 5: On successful completion of lease agreement and a lease is signed, the Safeguards Specialist will then proceed with the preparation of an ESMP and if required, a resettlement action plan (RAP) or abbreviated resettlement plan (ARAP). Both documents will be guided by the ESMF and RPF respectively. The ESMP will go through the required consultations as set out in the Stakeholder Engagement Plan (SEP) and on completion of a draft, will be disclosed to the relevant stakeholders for comments before finalization. The finalized ESMP, incorporating views 17 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) from stakeholder consultation will then be disclosed on the WB website and on ED/DoRD website, CPUC’s website, and hardcopies distributed to publicly accessible locations so that local people will have the opportunity to read it. Following disclosure, the Safeguards Specialist will make sure the ESMP is integrated into the bidding documents for the procurement of a works contractor and as part of the Contractor’s signed Contract. The Safeguards Specialist will also prepare and lodge with the Secretary of the Department of Human Resources, an application for the appropriate permits with the ESMP and the initial EA screening and categorization reports attached. 8. Preparation of Resettlement instruments 79. The preparation and implementation of any required resettlement plan (expected to be an ARAP) will follow a separate but parallel track to that of the ESMP, both under the supervision of the Safeguards Specialist. The resettlement planning process is detailed in the Resettlement Policy Framework. The discussion in the foregoing section on land acquisition via lease negotiation is presented in the ESMF to clarify the role of EA and other related safeguards policy (OP 4.04 Natural Habitats) in site selection as part of land acquisition, and to highlight the relationship between the two processes as part of project preparation. 9. Institutional Arrangements and Responsibilities 80. The ED/DoR&D is responsible for overall project preparation and implementation. A Project Implementation Unit (PIU) will be established within the ED/DoR&D and include a Project Manager, a Project Accountant, a Procurement Specialist, a Safeguards Specialist. The Procurement Specialist, the Accountant, and the Safeguards Specialist are the CIU’s personnel and support the implementation of various IDA-financed projects, including this one. The PIU will coordinate the implementation of the project with the ED/DoR&D, the states and the utilities in a manner that is to be set forth in a Memorandum of Understanding (MoU) that outlines the roles of each organization. The MOU will clarify, inter alia, the necessary state and intra-government cooperation and support necessary for the project. 81. The Project Manager will be responsible for overall project coordination and technical guidance and will support the procurement of the various procurement packages and studies. The Project Manager will report to the Assistant Secretary (AS) at the ED/DoR&D and to the Project Steering Committee (PSC). The CIU, as the unit coordinating all related procurement and financial matters, will be responsible for the project´s fiduciary aspects. The CIU will act as the focal point for the World Bank. Additional procurement and safeguards support may also be considered, if needed. 82. A PSC will be established and comprise representatives of the Department of Finance and Administration (DoFA), R&D, the PIU, the CIU, ED/DoR&D, PUC, CPUC, YSPSC, KUA, the AMU and the state government amongst others. The PSC will oversight and provide strategic guidance during the project implementation. The Secretary of DoFA and the Secretary of R&D will co-chair the PSC. 18 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 83. A Project Implementation Manual (PIM) will be prepared and adopted not later than three (3) months after effectiveness by the PIU and the CIU, and will include: (i) institutional arrangements for day-to-day execution of the project, (ii) the procurement plan and implementation arrangements, (iii) guidance on implementation of safeguard instruments and GRM, (iv) budgeting, disbursement and financial management processes, (v) project monitoring, reporting, evaluation, and performance indicators including implementation of, and compliance with, Bank safeguard policies. 84. An engineering unit will be created within each utility to provide daily support to the implementation of the SEDAP. These units will be composed of the utility’s owner’s engineer, as well as dedicated staff who will support construction and supervision. The Project Manager will work with the engineering unit to coordinate and ensure a sound project implementation as per the role’s scope of work. Table 7 lists the units involved in implementation and supervision. Table 6. Implementation and Supervision Units Unit Staff CIU Procurement Specialist, Financial Specialist, Safeguards Specialist PIU Project Manager PUC-Engineering Owner’s Engineer, PUC-SEDAP dedicated staff Unit CPUC-Engineering Owner’s Engineer, CPUC-SEDAP dedicated staff Unit YSPSC-Engineering Owner’s Engineer, YSPSC-SEDAP dedicated staff Unit KUA-Engineering Owner’s Engineer, KUA-SEDAP dedicated staff Unit 10. Organizational Arrangements and Responsibilities for ESMF Implementation 85. The following organizational arrangements and responsibilities apply. 10.1. Project Steering Committee: 86. Aside from its oversight and strategic guidance function for project implementation, the PSC is also the final resort for the redressing of project grievances, in the Project’s Grievance Redress Mechanism. Failing this, the aggreived party may wish to seek other legal avenues, including litigation. 10.2. Energy Division/Department of Research and Development (ED/DoR&D) 87. The Energy Division of the Department of Resources & Development (ED/DoR&D) is responsible for the implementation of this ESMF. 10.3. Project Implementation Unit (PIU): 19 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 88. Within ED/DoR&D is the PIU, lead by a Project Manager and a Technical Advisor. There are three part-time personnel namely the Procurement Specialist, the Accountant, and the Safeguards Specialist who will be based in the FSM CIU and will support the implementation of various IDA-financed projects, including SEDAP. 89. The CIU Safeguards Specialist will coordinate the implementation of this ESMF with CPUC and the contractors/suppliers. The specific manner with which this coordination will work will be set forth in a Memorandum of Understanding to be signed between the ED/DoR&D, CIU the States and the State utilities. 90. The MOU would create a binding contractual relationship between the national government and the utilities, and provide the national government with a legally enforceable mechanism through which it could require the utilities to fulfill their obligations for Project Implementation. 10.5 Chuuk Public Utility Company (CPUC) 91. Because this ESMF deals exclusively with the preparation of safeguards requirements for the Weno solar PV installations, the sites for which are not yet known, CPUC will play a major role in assisting and supporting the CIU Safeguards Specialist in the ESMF implementation. The CPUC Engineering Unit created to support SEDAP implementation will provide this support role in additional to its other assigned SEDAP implementation functions. 92. For the Grievance Redress Mechanism, CPUC will designate an officer from its Engineering Unit to be the Designated Contact Person. This role is set out in the GRM. Table 4 below summarizes the safeguards instruments including this ESMF, and the entities responsible for their implementation. Table 4: Safeguards Instruments vs Responsible Agencies/Organizations No. Safeguards Instrument Responsible agencies/organizations 1 ESMF CPUC, PIU 2 ESMP PUC, KUA, YSPSC, PIU, contractor(s) 3 RPF CPUC,PIU 4 SEP PUC, KUA, YSPSC, CPUC, PIU, Contractor(s) Grievance Redress National level – PIU, PSC 5 Mechanism (GRM) State level – PUC, KUA, YSPSC, CPUC, Site level – Contractor (Site Manager) 10.6. CIU Safeguards Specialist 93. The Safeguards Specialist’s overall objective is “…to ensure compliance with the safeguards instruments, the World Bank Safeguards Policies, the World Bank Environmental and Social Framework, build capacity within FSM and more broadly to incorporate international good practice into Projects.” This ESMF is one of several SEDAP safeguards instruments which implementation he/she is responsible for. 10.7. WB Safeguards Specialists 94. The World Bank Task Team for SEDAP, including safeguards specialists, will make twice-yearly supervision missions. During missions, he/she will contribute, as appropriate, to 20 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) capacity building, training and other support and mentoring roles for the CIU Safeguards Specialist, ED/DoR&D and State utilities personnel to better monitor and oversee the implementation of this ESMF. 11. Public Consultation 95. The PIU with the support of the CPUC – on behalf of the GoFSM as the grantee - will consult project-affected groups and local non-governmental organizations (NGOs) about the project’s environmental aspects and takes their view into account. The PIU ensures that these consultations are initiated as early as possible, once project site(s) are known. 96. A Stakeholder Engagement Plan (SEP) has been prepared for SEDAP which sets out the required consultations including those for implementing the ESMF. The SEP is appended. 96-1. Public consultations to date involved meetings with ED-DRD and CPUC officials, members of the Chuuk Energy Working Group specifically to review and discuss this draft ESMF, as well as visits to sites being considered and conversations with potential lessors. . Similar consultations on the draft ESMF took place in PUC, KUA and YPSPC during this period. Reports of these consultations are annexed. 12. Disclosure 97. For meaningful consultations between the GoFSM and project-affected groups and local NGO’s the GoFSM through the PIU, provides relevant material in a timely manner prior to consultation and in a form and language that are understandable and accessible to the groups being consulted. 98. Such material includes (i) a summary of the project’s objectives, description, and potential impacts. Where a site requires an EIA to be carried out; a draft EIA report will be subject to consultations, with the GoFSM/PIU to provide a summary of the EIA conclusions to stakeholders apriori. The PIU also makes the draft EIA report available at a public place accessible to project-affected groups and local NGO’s. 99. Once the GoFSM/PIU officially transmits the safeguards instrument prepared (ESIA, ESMP) to the Bank, the Bank distributes the summary to the executive directors and makes the report available through its InfoShop. An EIA report will be made available through the Bank’s InfoShop once officially transmitted by GoFSM. Public availability and disclosure in the FSM and official receipt by the Bank of EIA reports are prerequisites to Bank appraisal of these projects. 100. For this draft ESMF, once approved by the ED/DoRD on behalf of the GoFSM, and the World Bank, it will be disclosed publicly in similar manner to an EIA report, by making it available at a public place accessible to project-affected groups and NGOs, and by the Bank through its InfoShop. ED/DoRD may also upload it on its website and encourage CPUC to do the same on its website. 100-1. This disclosure process started prior to Project Appraisal on 25 October 2018 with the draft ESMF uploaded on the WB InfoShop and in the website of the Department of 21 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Resources and Development. Part of this process included consultation with key stakeholders to discuss to review and discuss the draft framework, and this took place on the 8 – 9 October in all four states. Chuuk is also conducting a second public consultative meeting for this purpose on the 11 October, to ensure civil society is informed and have the opportunity to expressed views and comments on the planned development. Reports of the 8 – 9 consultation meetings are in the annexes. 13. Grievance Redress Mechanism (GRM) 101. The GRM recognizes that most grievances are likely to be most frequent in project activities implemented in close proximity of publicly accessible areas such as the network extension and solar power plant in Weno, and the mini-grids in the outer islands of Satowan and Udot. Most complaints also occur during the construction phase when sites are physically transformed by processes, equipment, machinery, and people - that are often disruptive and sometimes invasive of local communities and their normal routines. 102. Having said so, even in activities carried out within the closed confines of State utilities fenced compounds, excessive noise, unpleasant odours, or leaks of contaminated water through waterways etc., are issues that have a direct impact on people. Public complaints and grievances pertaining to those and any other impacts require a clearly defined mechanism through which they can be expressed and received, as a first step towards their mitigation or reversal. 103. 98. The following GRM assumes the first points of contact are site supervisors or the State Utility who is often the ‘face’ of the Project for most local people. In reality, complaints are often directly addressed to higher levels. Table 5: Grievance Redress Mechanism Stage Process Duration Often complaints are about nuisances on the construction Any time. site. The Aggrieved Party (AP) typically take his/her grievance to Construction Site Supervisor (CSS) who will endeavour to resolve it immediately. 1 In other cases, the Complainant takes his grievance directly to the Utility company. In such cases, he/she will be referred to an officer who has been designated to perform this role or the Designated Contact Person (DCP). Where AP is not satisfied with the response at the site Immediately if the CSS level, the CSS then refers the AP to the Project’s thinks the complaint is Designated Contact Person (DCP) who would be an outside his ability to employee of CPUC, KUA, PUC and YSPSC in their resolve. 2 respective States. For complaints that were satisfactorily resolved by the CSS, he/she will inform the DCP and the DCP will log the grievance and the actions that were taken. On receipt of the complaint, the Project DCP will endeavour Immediately after 3 to resolve it immediately. If unsuccessful, he/she then logging of grievance. notify the Utility General Manager. 22 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) The Utility GM will address the complaint with 1 week. If 1 week. 4 unsuccessful, he/she will then inform the PIU (Project Manager) The PIU, if not able to resolve the issue satisfactorily, will 4 weeks refer the matter to the next sitting of the Project Steering Committee or otherwise convene an extraordinary meeting of the PSC if in his/her assessment, the issue warrants it.. If the matter remains unresolved with the intervention of the 1 month. PSC, the PIU will then advise the complainant of his/her 5 legal options. He/She may then pursue his/her grievance with the Court which decision on the matter would be final. Figure 2: Flow Diagram showing Project level Grievance Redress Mechanism Construction Site Supervisor (CSE) Resolved Aggrieved ? Not resolved Party Designated Contact Person (DCP) within Utility ? Resolved Not resolved Utility General Manager Resolved ? Not resolved PIU Project Manager Resolved ? Not resolved Project Steering Committee Resolved ? 23 Decision is final Court [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 104. The World Bank task team, including safeguards specialists, will make twice-yearly supervision missions. There will be opportunities for capacity building, training and other support and mentoring tasks during the missions to support the IA and utilities to implement and supervise the EMP and ESMF. 14. Budget and Safeguards Financing 105. An indicative budget US$378,000 is required for the implementation of all safeguards instruments for SEDAP including this ESMF for the Weno solar power plant. Funds will come from SEDAP. CIU funds the Safeguards Specialist for the first two years from its Transport project budget. Funding provision for a part time Social Safeguards Specialist for the last three (3) years of the Project is included. Table 8 below provides budget details. Table 7: Indicative Safeguards Budget for SEDAP No. Details Amount (US$) 1 Part time Safeguards Specialist (last 3 years)11 108,000 2 Environmental assessment (Weno sites for solar plant). 40,000 3 Resettlement planning (Chuuk sites)12 40,000 3 Training 30,000 4 Travel (for part time SS)13 90,000 5 Monitoring and Reporting14 (incl EMA costs) 30,000 6 Stakeholder Engagement 20,000 7 Disclosure 5,000 8 GRM related costs 15,000 TOTAL US $378,000 106. All financial compensation for land taking and other resettlement measures will be the responsibility of the Government of FSM. The DoFA will ensure the required funds are available. 15. Monitoring and Reporting 107. Monitoring and reporting on the implementation of this ESMF will be hard-wired into the regular, six monthly, reporting to GoFSM and the Bank. The CIU/PIU Safeguards Specialist will be responsible for ESMF implementation monitoring and will assist the PIU Project Manager in the preparation of required progress and monitoring reports. *************** 11 45 x consultant days per year for 3 years 12 Include cost of land surveying for easements, travel cost to Satowan and Udot (incl boat fuel) and fees for a resettlement specialist 13 3 x international economy round trips per year and DSA 14 Including EMA costs for RAP monitoring. 24 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Annex 1: References 1. World Bank Safeguard Policies: Ext Opmanual - Operational Manual - World Bank 2. Castalia. March 2018. Energy Master Plans for Federated States of Micronesia. Final Report to Department of Resources and Development. Pohnpei. 25 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Annex 2: Stakeholder Engagement Plan (Matrix) Table 2: Stakeholder Engagement Plan Objectives Target Stakeholders Messages/ Means of Schedule/ Responsible Agenda Communication Frequency Agencies/Groups PROJECT PREPARATION / DETAILED DESIGN STAGE To present draft the ESMP, Government a) Present the SEDAP – Organized public Before project construction  Energy Division – ESMF and RPF; to engage agencies, State objectives, rationale, meetings / NDRD; stakeholders in their finalization. Utilities, State EPAs, components, benefits and consultations and Two meeting per State, one NEW, SEWs, beneficiaries, implementation or focus group for Government agencies business sector reps; arrangements. discussions (FGD). and utilities; one for local b) Indicative implementation NGOs, civil society local environmental schedule and period, project organizations, business NGOs; community contacts, representatives, etc.. groups reps, c) Potential environmental and (1) women’s groups; social impacts; measures for mitigation; Representatives of d) Potential land requirements; Satowan and Udot process of land acquisition and resettlement; compensation and other resettlement assistance; e) Describe Grievance Redress Mechanism (GRM) Disclose plans for a new waste PUC, Pohnpei EPA, Discuss waste oil issue from gensets; Public meeting One-off; or this can be PUC, PIU oil storage tank for PUC reps of HH’s in the cumulative impact; risks of spills and combined with the Pohnpei 2 vicinity of where contamination of soil, local waterways public meeting under (1) storage tank is to be etc.. above. located To disclose finalized ESMP, Government Email message to advise Upload on websites One-off ED/NDRD - PIU ESMF and RPF agencies, State Stakeholders of disclosure and where of Government NB: re-disclose after any Utilities, State EPAs, to access the disclosed documents. agencies including significant revision. NGOs, local utilities websites; environmental NGOs, WB and others. women’s groups. 3 World Bank. Hard copies in locally accessible places. Email copies to key individuals and organizations. 26 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Land Acquisition (Chuuk) Representative(s) of Lease negotiation with confirmed Face-to-face Before project construction CPUC Finalize land lease CPUC; private land owners of land identified for Project meetings  CEO Kembo arrangements owner(s); purposes. Frequency - As often as Mida; 4 needed  Land owner or his/her representative. Land acquisition – Voluntary CPUC, Confirmation of land ownership; Face-to-face Before project construction. CPUC, Land Donation (VLD) representatives of Government interest in land for meetings representatives of Satowan and Udot SEDAP; how much land is required. Frequency - As often as Satowan and Udot in communities; Resettlement assistance as needed separate meetings. 5 necessary; compensation. Possibly other landowners for Weno sites. Landowner, CEPA, To screen site for EA categorization. Face-to-face Before project construction PIU Safeguards Site Screening for Weno Solar CPUC meeting Specialist, CPUC rep 6 PV Installation Frequency – as often as needed. Landowner, other To prepare EIA instrument Face-to-face Before project construction PIU Safeguards APs, local NGOs meetings Specialist, CPUC re, 7 Frequency – as often as EIA Consultant needed EA preparation Land owners, other To discuss EIA findings and Group Meeting Before project PIU Safeguards AP’s local NGOs, recommendations implementation Specialist; EIA 8 CPUC, CEPA, Consultant Frequency – one off. CPUC rep; PIU rep; Detailed measurement survey; Face-to-face Once land is acquired; CPUC; PIU 9 affected landowners; inventory of affected people; meetings other affected people CPUC rep; PIU rep; Discuss losses and resettlement Face-to-face Before project construction - CPUC, PIU RAP/ARAP preparation affected landowners, measures including any financial meeting with All AP’s to be consulted 10 other displaced compensation; valuation of lost affected people. assets. household head or individual. RAP/ARAP Disclosure CPUC, all AP’s in Email message to advise On websites of One-off ED/NDRD; PIU Chuuk, DoFA, WB Stakeholders of disclosure and where Government 11 to access the disclosed documents. agencies and utilities, and WB. Weno network extension All affected Confirmation of network alignment; Face-to-face As often as needed CPUC landowners along discussion with Affected Landowners, meetings with 12 extension alignment if any. affected landowners Contractor’s ESMP Contractor; PIU, Review and assess sufficiency of Exchange by On-going until CESMP is PIU/EPA 13 State Utility, State Contractors’ ESMP. email deemed acceptable by PIU EPA, WB and WB. CONSTRUCTION PHASE 27 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Objectives Target Stakeholders Messages/ Means of Schedule/ Responsible Agenda Communication Frequency Agencies/Groups General public Inform public about network Public notification At least a day before start of CPUC extension work, any likely disruption (radio) works on motorists and pedestrians, any planned power outages, traffic Notices on bulletin Frequency - Several times a 14 Network extension work in Weno management issues. boards of day during works duration. Government offices, public buildings, local community halls and schools. Installation of new gensets and General public Inform public about any planned Public notification At least a day before start of PUC, KUA and 15 other ancillary equipment in power outages (by radio) works YSPSC in their PUC, KUA, YSPSC respective states. Women’s groups, Discuss health and fuel-saving Community To be finalized once Chuuk Women’s To raise awareness of and general public in benefits of efficient clean meetings / selection of islands are Organization (tbc); promote the benefits of efficient selected islands of cookstoves; Workshops confirmed SPUC 16 clean cookstoves FSM Cooking demonstrations Conduct survey assessment Women’s groups, Survey of number of users of Community meeting To be finalized once Chuuk Women’s Follow up survey on cookstove general public in cookstoves; feedback on impacts / Workshop selection of islands are Organization (tbc); 17 usage selected islands of (health, social, etc), comments on confirmed CPUC FSM design etc. Project Steering Review progress report from PIU Face-to-face Quarterly over the life of the PIU – Project 18 Committee and Project Supervision Consultant meetings project Manager Project implementation progress PIU, Project Review implementation progress; Face-to-face Monthly, and or as required PIU monitoring Supervision discuss and address any issues meetings Consultant and arising; 19 Contractor Resolve grievances received by PSC as GRM To address grievances referred to Face-to-face As necessary (as per GRM) PIU 20 the project Committee the Committee meetings OPERATIONS AND MAINTENANCE PHASE f Information dissemination on new General public General information on solar power Posting on CPUC As soon as possible after solar power plant plant; bulletin boards; opening of solar power CPUC All government CPUC website; plant in Chuuk. agencies newspaper and radio news release upon 21 Business community opening. Civil society Information leaflets organizations 28 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Objectives Target Stakeholders Messages/ Means of Schedule/ Responsible Agenda Communication Frequency Agencies/Groups General public advice General public Planned power outages for Radio and At least, a day before. PUC, CPUC, KUA maintenance or other reason. newspaper; and YPSPC – in 22 their respective Notice board memos states in government offices and public buildings 29 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Annex 3: Chuuk Solar Environmental and Social Impact Screening 1) Location, map, GPS location points, size of plot, land owner(s), access via nearest public road, access via coastal area (if required), lay down area required. 2) Existing land uses and land cover on the site and along access roads and other land needs (describe agriculture, cultural uses, vegetation types (native and non-native), sensitive habitats, dwellings, buildings, businesses). What wildlife is present / could be present? Based on this screening, is an ecological assessment required to describe natural habitats and species at risk? Yes / No 3. Involuntary Resettlement (IR) Screening: If land is compulsorily acquired for the subproject (i) Is there likely to be loss of shelter or residential land as a result of the subproject? (Yes/No) (ii) Is there likely to be loss of crops or other productive assets as a result of the land acquisition? (Yes/No) (iii) How many people are likely to be displaced physically? a. If > 200 people, land is not acceptable; b. If < 200 people, land is acceptable. Go to Resettlement Policy Framework (RPF) for next steps; (iv) Will the project likely to result in the involuntary restriction of access by people to legally designated parks and protected areas? (Yes/No) Categorization: If Yes to ((i) and or (ii), (iv) and > 200 people affected, Project is Category A. Land is not acceptable for Project. If Yes to (i) and or (ii), (iv) and < 200 people affected, Project is categorized B for IR. If No to (i), (ii) and (iv), Project is categorized C for IR. If land is voluntarily acquired, by lease or outright purchase, no RAP is required. (v) If an easement (outside of an existing ROW) is likely required for the distribution network? Go to RPF for next steps. (i) Physical cultural resources Within the project footprint, are there any PCR that could be impacted by physical works or solar panel operations? (graves, sacred sites, archaeological or historical sites) a. If yes, include requirement for a specific PCR survey and management plan in the ESIA TOR. b. If no, include Chance Finds Procedures in the ESMP. (ii) Environmental Assessment and Natural Habitats a. What is the nature of land / coastal area to be acquired for the subproject? Coastal, foreshore, reef flat, river or stream bed, wetland/swamp, forest, garden? What wildlife is present, or may be present? 30 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Based on screening, is an ecological survey required to describe natural habitats and species at risk? Yes/ No b. Is land likely to require significant landscaping/earthworks? Yes/No c. Is the receiving environment for surface run-off a sensitive natural habitat? Yes/No d. Based on screening, is an environmental survey of the receiving environment required to determine significance of impacts? Yes/ No e. Would having the project in this location cause a significant barrier or impediment to plant or animal colonization? Yes/No? f. Is the land located in or adjacent to a protected area? Yes/No Confirm the Categorization of Activity: Category A – if Yes to all questions (a) to (f); land is not suitable for SEDAP subproject . Category B – if No to Questions ((b), (c), (d), (e) and (f),then subproject is categorized B for Environmental Assessment. Refer to ESMF for next steps. Category C – if No to all questions (a) to (f); no further assessment or documentation need be prepared. 31 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Annex 4 : PCR Chance Find Procedures In accordance with OP4.11 Physical Cultural Resources and the RMI Historic Preservation Act 1991, when a person working on the project discovers a cultural heritage site or item, the following procedures should be followed: 1. Stop the activities in the area of the chance find; 2. Delineate the discovered site or area (e.g. fencing); 3. Secure the site to prevent any further disturbance, damage or loss. In cases of human remains, arrange for a guard to watch the site until the police, local government and / or National Cultural Commission representative or person with delegated authority take over; 4. Prohibit the collection of objective by any person; 5. Notify the local government and RMI Historic Preservation Office within 24 hours (and police if it is human remains); 6. Any objects that are found must be handed over to the Historic Preservation Office. 7. Project works can resume only after instruction is provided from the Historic Preservation Office. 32 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Annex 5: Reports of Consultations in Chuuk, 8th & 11th October, 2018 Minutes of Consultation for the Sustainable Energy Development and Access Project (SEDAP) with the Chuuk Energy Working Group and others. Venue Conference Room Date/Time 8 October 2018 Chuuk Power Utility Company 10:00am-1:00pm (CPUC) Attendees from CPUC Kembo Mida, CPUC General Manager Lei Attendees from WB None Attendees from Sam Sesega (Safeguards Consultant) (SS) Environment Division ESDP/SEDAP Comments/Presentation 10:30 Wildfred Chairman of the Energy Working Group welcomed everyone from the various agencies and sectors to the Meeting, asked the Mayor of Udot to give the opening prayer, and after the Opening Prayer, declared the meeting open. He referred to the prepared Agenda and proposed that the meeting started with the presentation by the Safeguards Consultant. Presentation The Safeguards Specialist started with a slide on the purpose of this Summary consultation highlighting that it is a WB requirement, and best practice for the planning of development projects; that the safeguards instruments had been disclosed in draft form; how this consultation contributes to the project preparatory phase, and to discuss key issues pertaining to the Projects safeguards instruments namely the ESMP, ESMP for Weno, Resettlement Policy Framework (RPF) and Stakeholder Engagement Plan (SEP). The SS noted that where appropriate and relevant, comments received will be integrated into the final project design. The SS powerpoint presentation discussed the project components, and then focused on those physical investments earmarked for Chuuk – namely the Weno solar power plant, the mini-grids in Udot and the upgrade to the Satowan mini-grid. He explained the frameworks (ESMF and RPF) highlighting the process for screening new sites, the role of CPUC in this process, and in the subsequent preparation of safeguards instruments required; the proposed CPUC Engineering Unit for assisting the PIU Safeguards Specialist in the preparation of the safeguards instruments, and in the subsequent implementation. The Grievance Redress Mechanism was discussed last, the importance of recording all complaints received, the need for CPUC to identify who the Contact Person is within CPUC; and how unresolved complaints filter up to the CPUC General Manager, to the PIU Project Manager and the Project Steering Committee (PSC), before litigation if a dissatisfied complainant wishes to. Following the SS’s presentations, the floor was open to questions and responses from the floor. The following summarizes the issues raised by the various participants. 33 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Name/Village/gender Comment/View expressed i. If there is delay in securing land for the Weno solar installation, can the Satowan and Udot mini-grid proceed still? ii. Are these proposals going to be implemented and soon? The Udot feasibility study by Balance was completed in 2016 and the communities are still waiting. iii. Is the project going to fund activities such as surveying land boundaries in order to legally define easements, cost of hiring a boat to go to Udot and those kinds of costs? iv. The critical issue for CPUC, is long term sustainability. Right now, CPUC prefers to have the Weno solar plant implemented and be operational first, before Satowan and Udot, because savings projected to be generated from the Weno solar is what CPUC will rely on to support the maintenance of the mini-grids in Udot and Satowan. Failing this, it is financially infeasible for CPUC to sustain these outer island investments. v. It is critical that the Weno solar power plant is implemented and before the outer island investments in mini-grids. vi. A few weeks ago, an WB consultant (Anetter) visited Udot and when asked by local people as to when the project will be implemented, she was not able to say so. As a result, Udot are skeptical and uncertain, after their expectations were pumped up by other consultants who were more forthcoming. vii. Need to properly manage the expectation of local communities. viii. Is this project going ahead? ix. For Udot and Satowan, how much per kWatt if they are to run it on their own? x. Satowan and Udot are likely to have higher tariffs and may likely need subsidies to keep it viable. xi. Affordability of tariffs in Satowan and Udot is highly uncertain. CPUC and the Government may set up these solar power sources only to find no one is willing to pay for them. Then what? xii. CPUC recognizes the risks involved and for that reason, are keen to engage the Energy Working Group in the decision-making process and not CPUC on their own. xiii. Why is it that Chuuk is offered only 2 MW of solar while Kosrae will get 2MWh of battery capacity? xiv. If CPUC can find enough land for a 3MW solar facility, will the WB be amenable to funding it under SEDAP? xv. How many landowners have so far indicated interest in offering their land for the Project’s solar installation? xvi. The Chuuk State is fully supportive of the SEDAP and she (State) would prefer that the solar power facility in Weno be implemented and completed first before Satowan and Udot. xvii. If land is an issue, can we have a mix of roof-tops and land –based panels to get the 2 MW proposed? xviii. If Xavier school is eliminated from the ESDP, should be put in back in under SEDAP? xix. Udot land earmarked for the Project is confirmed to be owned by the Municipality, thus available to the Project without any issues. xx. Satowan land earmarked for the new genset and solar panels etc is Government owned and is available for the project. xxi. Its best to await the ENTURA Feasibility study report before making any changes to the Project; mini-grids are often more complex than people they are. xxii. There should be consultations in Satowan and Udot with the local people to confirm the alignment of the easements for the distribution networks, before contractors work starts. xxiii. What exactly is proposed for Satowan? An expansion or an upgrade? xxiv. Satowan people living in Weno should be also consulted. Most of them are in Weno for work but their homes and families live on Satowan. xxv. Will SEDAP fund the cost of land surveying, travel to Udot and Satowan to do consultation and other project related activities? xxvi. There should be another consultation to further engage other stakeholders and the public 34 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) who are not involved in today’s consultations, this week, while the Safeguards Specialist is in Weno. Closing : Following questions and answers, the Chairman of the Energy Working Group thanked all who attended, and the Consultant for his presentation and contribution to the discussion. He reiterated that another consultation for other stakeholders will be conducted on Thursday 9:00am at this same venue. He then closed the consultation meeting. Minutes compiled by Sam Sesega SEDAP/ESDP – Safeguards Specialist ********* 35 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Report of Consultation for the Sustainable Energy Development and Access Project (SEDAP) with the Chuuk Energy Working Group and others. Venue Conference Room Date/Time 11 October 2018 Chuuk Power Utility Company 9:00am-12:00pm (CPUC) Attendees from CPUC Kembo Mida, General Manager Lei Shirai, Chief Financial Officer Attendees from WB None Attendees from Sam Sesega (Social Resettlement Consultant) (SS) Environment Division ESDP/SEDAP Name/Time/Matter/ Comments/Presentation 10:30 Wildfred Robert Chairman of the Energy Working Group welcomed everyone from the various agencies and sectors to the Meeting, asked the Senior Land Commissioner to give the opening prayer, and after the Opening Prayer, declared the meeting open. Participants then introduced themselves – giving names, positions and agencies or organizations represented. Wilfred then invited the Safeguards Consultant to give his presentation. Project Overview The Safeguards Specialist started with a slide on the purpose of this consultation highlighting that it is a WB requirement, and best practice for the planning of development projects; that the safeguards instruments had been disclosed in draft form; how this consultation contributes to the project preparatory phase, and to discuss key issues pertaining to the Projects safeguards instruments namely the ESMP, ESMP for Weno, Resettlement Policy Framework (RPF) and Stakeholder Engagement Plan (SEP). The SS noted that where appropriate and relevant, comments received will be integrated into the final project design. The SS powerpoint presentation discussed the project components, and then focused on those physical investments earmarked for Chuuk – namely the Weno solar power plant, the mini-grids in Udot and the upgrade to the Satowan mini-grid. He explained the frameworks (ESMF and RPF) highlighting the process for screening new sites, the role of CPUC in this process, and in the subsequent preparation of safeguards instruments required; the proposed CPUC Engineering Unit for assisting the PIU Safeguards Specialist in the preparation of the safeguards instruments, and in the subsequent implementation. The Grievance Redress Mechanism was discussed last, the importance of recording all complaints received, the need for CPUC to identify who the Contact Person is within CPUC; and how unresolved complaints filter up to the CPUC General Manager, to the PIU Project Manager and the Project Steering Committee (PSC), before litigation if a dissatisfied complainant wishes to. Following the SS’s presentations, the CEO CPUC added more background information, explaining the low electricity coverage (27%) in FSM, the Master planning exercise, the emphasis in Chuuk on 36 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) extending access, why Satowan and Udot, what a mini-grid is vs a stand alone system, some of the economic issues faced in the decisions involving the sequencing of the investments and the overriding economic importance of the solar power plant in Weno vis- à-vis the outer islands mini-grids and the role it plays in financially sustaining the latter. Comment/View expressed i. Sunlight is available but CPUC has no money for panels. ii. Government is to provide land for the investment. iii. Currently CPUC spend about $300k per month on diesel. iv. CPUC is not likely to make money from the mini-grids investment in Satowan and Udot. v. There are other studies to follow that will examine the technical and financial feasibility of the mini-grids and solar power plant together. vi. Voluntary land donation is not expected in Chuuk; there is not much land and landowners don’t give away land for free. vii. Home solar systems are not proposed for Weno but on Udot. They are also not free but will be metered. viii. Hope the WB will be amenable to increasing the solar component to a 3 MW capacity if CPUC comes up with the land (30,000m2 or more) ix. Can CPUC deal directly with World Bank on these design issues? x. On Satowan, what waste products will be generated? xi. What are the benefits for the customer? Will the tariffs come down? xii. Are there similar solar components in other States? xiii. Is the access objective flexible? Can WB prioritize RE over access? xiv. It is important that there are other economic activities going to support and create a demand for RE such as the fisheries project in Pohnpei that is working closely with PUC. xv. Mayor of Satowan (MoS) – appreciates being invited to consultation; reaffirm Satowan community’s support for the project; noted that there are other sites if more land is needed for the project e.g. Catholic Church property. xvi. MoS – underground network is fully supported by the Satowan Municipal Council. xvii. Senior Land Commissioner (SLC) – land taking is time consuming; recommends a site with only 1 land owner and not multiple landowners; xviii. SLC – requested that he be advised of the preferred site asap so that land titles can be released asap to expedite project preparation/implementation. xix. SLC – outright purchase of land is better than lease; xx. LC – all Satowan leaders should sign the letter supporting the use of land for the project. Closing : Following questions and answers, the Chairman of the Energy Working Group thanked all who attended, and the Consultant for his presentation and contribution to the discussion. He then closed the consultation meeting. Minutes compiled by Sam Sesega SEDAP/ESDP – Safeguards Specialist ********* 37 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 38 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Annex 6: Report of Consultations in Kosrae 12 October 2018 October 12, 2018 “Consultation Meeting Among Kosrae State Stakeholders on the Sustainable Energy Development and Access Project Under World Bank” This meeting was held at on the above date at the Governor’s Conference Room at 10:00 a.m. This meeting was chaired by the Kosrae Energy Taskforce Lt. Governor Sigrah. The purpose of the meeting and description of the Kosrae Energy taskforce was made by Kosrae Utilities Authority General Manager Fred Skilling. Kosrae Energy Taskforce consists of three (3) members appointed by Governor Jackson and they are Lt. Governor Sigrah, GM Fred Skilling, and KUA Board of Directors Chairman Lipar George. A welcoming remark was delivered by Governor Jackson to all stakeholders. Stakeholders are listed on the invitation letter attached to this report. After the presentation made by GM Fred Skilling on the above subject matter, the floor was open for questions and concerns regarding the presentation. Some of the questions/concerns or comments raised were as follows: STAKEHOLDERS PARTICIPATION COMMENT  That the participation of all the stakeholders is necessary for World Bank Grant requirements. FUNDING CONCERNS  What was used to determine the funding distribution to all the FSM States? Could the distribution of funds based on each state’s population? RENEWABLE ENERGY (RE) CONCERNS  Can the Increasing of Renewable Energy source lower the electricity rate to citizens?  Could the 4 years plan of increasing 30% of RE be lesser? The State leadership and Stakeholders to prioritize timing of increasing RE an important issue to discuss.  How much MWH or KWH we generate per day?  How much KWH or MWH can store up in the storage battery?  How much Solar PV is in operation? SCADA CONCERNS  Would there be an automatic switch on the SCADA that can be automatically open on the SCADA when there is a problem detected or identified in a particular area? ENVIRONMENTAL IMPACT CONCERNS/COMMENTS  An Environmental Impact Assessment (EIA) and a Waste Management Plan needs to be submitted to Kosrae Island Resource Management Authority (KIRMA) for review regarding the Battery Storage Facility.  Since a Lithium Ion will be used for the Battery Storage, a review of this matter will be made by KIRMA and its board of directors.  Waste management system is well operated and managed by KIRMA, therefore World Bank Projects could run and approved, and let KIRMA to 39 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) handle the waste management system. KIRMA is recognized for their waste management efforts and accomplishments. WORLD BANK PROJECTS EMPLOYMENT OPPORTUNITY CONCERN  Are there any employment opportunities on the upcoming World Bank projects? OTHER UNRELATED CONCERNS  KUA should put concrete to electric poles from the ground to a height of 6 feet tall to prevent breaking of electrical poles.  A request was made to KUA to give an update and progress on the ADB Project at Walung mini grid and electrical installation. A closing remark was made by the Kosrae State Legislature Speaker Palik thanking the leadership of Kosrae State stakeholders for their participation in this meeting. Speaker Palik also acknowledged KUA and Management with better improvement onservices on the island. 40 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) 41 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Annex 7: Report of Consultations Pohnpei 12 October 2018 FSM Energy Sustainable Energy Development and Access Project Stakeholder Meeting Minutes Venue: Governor’s Conference Room Date October 12, 2018 Time: 10:00 A.M. Participants: The Hon. Marcelo Peterson Governor, Pohnpei State Government Mr. John Adolph Vice-Chairman, PUC Board of Directors Mr. Noel Commendador FSMRD, Energy Sector Mr. Nixon Anson General Manager/CEO, PUC Mr. Alex Nanpei Manager, PUC Engineering Services Mr. Sinakot Pelep Manager, PUC Management Information System Mr. Sidney Kilmete Manager, PUC Renewable Energy Ms. Kyoko Talley Office of Fisheries and Aquaculture, Pohnpei State Government Mr. Dackson Solomon Manager, PUC Power Generation Mr. Patrick Blank Palikir Consultants Mr. Henry Susaia Administrator, Pohnpei Environmental Protection Agency Mr. Rex Prosia Jr. Office Transportation & Infrastructure (T&I), Pohnpei State Government Mr. Nicholson Solomon Director, Department of Resources & Development, Pohnpei State Gov and Chairman, Pohnpei State Energy Working Group Mr. Jesse Henry Pohnpei Transportation Authority Mr. William Kostka Executive Director, Micronesian Conservation Trust Mr. Ricky Lebehn Acting Administrator, Office of T&I , Pohnpei State Government Record of Meeting: Mr. Nicholson Solomon to say a word of prayer before proceeding with the meeting. Mr. Nixon Anson, opened the meeting as the Chairman by welcoming everyone and that the stakeholders participation is a requirement by the World bank. Meeting proceeded with Mr. Anson presenting an overview and update of SEDAP, IDA 18 Funding for Pohnpei state under Component 1: Improving Reliability of Electrical Supply in Pohnpei. The component will finance medium speed gensets with capacity totaling 7.5MW. The total budget is $12,000,000 USD. The concept note for the project was approved in February 2018. The Project is in line with the Energy Master plan that was produced under Energy Sector Development Plan IDA 16 Funding. He also, informed that IDA 16 request for extension was approved and extended to September 2019. Mr. Anson also presented the Master Plan road map showing how this project (SEDAP, Component 1) is line with the goals set in the Master plan. Mr. Anson further presented the scope of work for the project. The new gensets will be installed at the existing power plant site in NPP2 and NPP3 now decommissioned. The project includes the engineering and design, procurement and delivery of genset, demolition, rehabilitation and preparation of site, Installation of new genset, Waste oil removal, construction of waste oil storage tanks for recycling or disposal, project management, testing and commission and project management control. The component will also finance an in house electrical engineer to oversee 42 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) the quality control of the project. He informed the committee that the engineering and design will be contracted to Castalia through a Change Order for Additional work for their Master Plan and Energy Assessment Contract. Mr. Anson also, discussed the benefits and environmental concerns:  Social Impact- He pointed out that the project will not cause any resettlement of communities because it will be built within the bounds of the existing power plant.  Environment pollution– Waste oil will be disposed of according to required regulation. A Temporary holding will be constructed on site to hold used oil until it is either recycled or shipped out.  Noise Pollution- Design will address noise attenuation for the new gensets to keep noise level within acceptable level for the neighboring communities.  Benefits will be realized through more efficient generators burning less fuel at increased Kw output which translate to fuel saving. Cost of fuel is the driving factor for high cost of energy to the customer. Mr. Anson opened the floor the Question and comments. Mr. Patrick Blank; Will be expect lower cost of energy/Cashpower? Mr. Anson replied with the comments he state earlier regarding fuel saving. Currently PUC efficiency is at 13KW/Gallon and estimated that with the new power plant efficiency can increase to 16 - 17KW/gallon. Mr. Henry Susaia commented on the Waste Oil and informed the committee that they are working with SPREP to address the waste oil issues for Pohnpei State. Initial works are underway with Vital Energy (FSMPETRO) for the removal of waste oil. SPREP is also looking into funding the construction of waste oil tanks at the dumpsite and is working with Pohnpei Waste Management. Waste oil will be stored at the dump site for ease of access to shipping vessels. Since SPREP is already financing waste oil tanks at the dumpsite, Mr. Susaia suggested PUC to recommend that the funding the construction of waste oil tank at the Power plant to co-fund the waste oil tank at the dumpsite. Mr. Anson took note of that suggestions. Miscellaneous items: Mr. William Kostka complimented on the overall progress being done for the Energy sector and wishes to know the status of the EU EDF 11 for stand-alone solar systems for the outer island. Mr. Anson informed that Under EDF 11, $1,000,000 is earmarked for the project and waiting for the completion of a feasibility study. The budget for the study is $100,000 and will be financed by IDA 18. Mr. Susaia raised a concern for proper disposal of batteries on the outer island. Governor informed that the new stand-alone system will be owned by PUC who will ensure batteries are disposed of safely. Governor Peterson requested an update on the renewable energy projects currently in the works. Mr. Anson updated the progress of the solar.  PUC has signed a Power Purchase Agreement with KSEL for a 3MW solar with 1MWh Battery storage. Expected completion is July 2019  New Zealand 300 KW Solar to start work early November and completed by March 2019.  GCF 2.7KW Hydro – Feasibility Study underway. 43 [Type text] SEDAP – Environmental and Social Management Framework (ESMF)  Waste Heat to Energy – PUC was awarded $2.9M for procurement and installation of Waste heat to energy. Before adjourning, Mr. Anson thanked everyone for their participation and inputs. A Special recognition was given to the Governor and Director of RD for their support. Meeting was adjourned at 11:30 A.M. Prepared by: PUC 44 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) Annex 8: Report of Consultations in Yap, 12 October 2018 Sustainable Energy Development and Access Project (SEDAP) Yap Consultation 12 October 2018 World Bank Grant Project (Under IDA18) 1. One CAT Genset 800kWp  This is to assist current peak-load genset as redundancy plant.  Alternating between 2 peak-load genset will prolong the life of the gensets … 10 to 20yrs 2. Installation of ComAp controller is also part of this project integrating it into the current hybrid power system 3. This will allow YSPSC to introduce more R.E into the energy mix, and save on diesel fuel costs, and provide as security against the volatility of fossil fuel cost. 4. Project Budget 1.3M 5. Environmental issues  Accumulation of waste Oil  Waste Oil shed have been built to safeguard from elements  Separation tanks is built to capture leaks both from waste oil shed and day tank  More R.E … less fossil fuel and oil to be used for generation Summary of Discussion After briefing the stakeholders on the points, the discussion continued on several issues like; how the current peak load differs from say several years back. It was explained to the stakeholders that demand has gradually decrease over the years as customers are trying to keep their usage at minimal, and that there is a lack in the economic growth for the State. One of the issue that the stakeholders were interested in was the Integration and control and so the whole group (YSPSC) contributed in explaining how it’s all working and the importance of it being a part of the new genset discussed. Director of R&D shared to the group that there is a Waste Oil Project on the horizon at the National level and although it is too early in the project for the Director to go into details of the project, he did mention that such project may be coming forth from SPREP. All in all, the meeting went well and the stakeholders appreciated the updates. 45 [Type text] SEDAP – Environmental and Social Management Framework (ESMF) YSPSC Attendance Sheet 46