85368 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE Report No.: Date prepared/updated: February 20, 2014. I. Basic Information 1. Basic Project Data Country: Solomon Islands Project ID: P146816 Additional Project ID (if any): P146816 Project Name: Solomon Islands Sustainable Energy Project, Additional Financing Task Team Leader: Tendai Gregan (Energy Specialist, EASNS) Estimated Appraisal Date: December 5, 2013 Estimated Board Date: 20 March 2014 Managing Unit: EASNS Lending Instrument: IDA Credit & IDA Grant Sector: General energy sector (100%) Theme: Urban services and housing for the poor (60%), public sector governance (40%) IBRD Amount (US$m.): IDA Amount (US$m.): 13 GEF Amount (US$m.): PCF Amount (US$m.): Other financing amounts by source: US$3.3 million (Project Implementation Agency) Environmental Category: B Is this a transferred project Yes [X ] No [] Simplified Processing Simple [X] Repeater [ ] Is this project processed under OP 8.00 (Rapid Response to Crises Yes [ ] No [X] and Emergencies) 2. Project Objectives: To improve operational efficiency, system reliability and financial sustainability of the SIEA. 3. Project Description: Progress under the original Project (P100311) has been encouraging in terms of financial performance of the SIEA, from virtually insolvent in 2011 to posting an audited solid profit in 2012 and a strengthening of SIEA management, with the successful re-appointment of a General Manager, a Commercialization Manager (Chief Financial Officer) and a professional director to the SIEA Board. However, the SIEA needs to further strengthen the existing generation capacity and system reliability. The Additional Financing activities will support a significant program of capital investment of the SIEA, which will contribute to improving power system reliability in Honiara, where 90% of the country’s power is produced and consume. The SIEA's exact capital expenditure program is not yet finalized, but it is known that it is assessing around US$70 to US$75 million in investments, comprising: a) $20m for 10 MW of diesel generation; b) $11 million for outstation generation and distribution networks; and c) $39 to 45 million for network upgrades on the Honiara grid, including major new connections such as transmission line for the Tina River Hydropower project. Proposed new activities The Additional Financing, totaling US$13.0 million over a 3 year period, would support the following components of the parent project: 1. Component 1, Strengthening Management. Capacity Building ($2.7 million, of which $2.0 million is IDA Grant and $0.7 million IDA Credit). Additional financing under this component will finance the following activities: a) Technical Assistance and training on dispatch and control, system planning, integration of renewables and Independent Power Producers; b) Provision of engineering services (owner’s engineer) for project design and supervision (to mid-2017); c) Capital projects managers from 2014 – 2017; and d) Finance and Due Diligence Technical Assistance (legal, finance officer, procurement officer, for upcoming Power Purchasing Agreements, e.g., Tina River Hydro and/or Savo Geothermal). 2. Component 3, Technical Operations. Capital investments for improving the reliability and efficiency of the Honiara power grid ($10.2 million IDA Credit). Four priority network investments would be financed to enhance the capacity of distribution transformers, lines and substations on the Honiara grid in order to enable it to meet existing and growing power demands more efficiently, provide better quality and quantity of electric power for productive uses, and reduce power system losses. Specifically, additional financing under this component would finance the following: a) Upgrading of the transformer capacity at Ranadi, the city’s main industrial zone, by adding one 5MVA, 33kV/11kV transformer and a second 33kV switchboard at Ranadi; b) Construction of a new system control room and dispatch centre at Ranadi; c) Installation of a 12.5MVA transformer and upgrading of the switching arrangements at Lungga Power Station; d) Construction of a 33kV/11kV Substation at Kola’a Ridge, including a 1x7.5 MVA transformer; and e) Relocation of the second power circuit to supply the residential area to the south of Honiara Airport (Feeder 12 area) by building a new overhead power line and an underground circuit around the airport that links the East Honiara Substation to the Feeder 12 area. 4. Project Location and salient physical characteristics relevant to the safeguard analysis: Project is located in Honiara city, Solomon Islands. Except for short power line extension and laying of underground cable around the east end of the airport runway, the rest of the investments will be carried out within the existing operating sites. 5. Environmental and Social Safeguards Specialists on the Team: Anil Somani (Environmental Safeguards Consultant) Mary C. K. Bitekerezo (Senior Social Development Specialist) 6. Safeguard Policies Triggered (please explain why) Yes No Environmental Assessment (OP/BP 4.01) x Except for a short, new, overhead power line and underground power cable to facilitate the relocation of Feeder 12 from Lungga Power Station to East Honiara substation, to supply the residential area to the south of Honiara International Airport, the rest of the construction is within the boundary of the existing power plant and transformer stations. Minor impacts from dust, noise, possible soil erosion, etc. are expected during construction but can be easily mitigated through good management practices. During operations stage, the new transformers are expected to contribute low-level humming noise. The noise level is expected to be well within the norm. An ESMF has been prepared to address the potential environmental and social impacts. Even though the project footprint is known projects design and other details are not available. Natural Habitats (OP/BP 4.04) x As most of the work will be carried out within the existing sites, and as there are no natural habitats in the area, the Policy is not triggered. Forests (OP/BP 4.36) x No forests will be impacted by the proposed works. Pest Management (OP 4.09) x The use of pesticides is not envisaged Physical Cultural Resources (OP/BP 4.11) x The proposed work will be carried out within the boundaries of the existing sites. No physical cultural resources are expected. However a chance find clause will be included in the contract, in case such a resource is unearthed. Indigenous Peoples (OP/BP 4.10) x There are no known Indigenous Peoples (IPs) as defined by the policy found in the project area of influence. This project is located in an urban area. Involuntary Resettlement (OP/BP 4.12) x The policy is not triggered as the new overhead power line to facilitate the relocation of Feeder 12 from Lungga to East Honiara and underground power circuit from the Lungga Power station, to supply the residential area to the south of Honiara International Airport will be positioned by the side of the public road, will use the existing rights of way or easements which are unoccupied. As such there is no land acquisition or involuntary resettlement. All other works will take place within the boundaries of the existing facilities for which land was leased to the Solomon Islands Electricity Authority as early as 1971. Safety of Dams (OP/BP 4.37) x The project will not finance any dams and the project will not rely on the performance of an existing dam. Projects on International Waterways (OP/BP 7.50) x The project will not support any activities on International waterways. Projects in Disputed Areas (OP/BP 7.60) x There are no known disputed areas in the project area of influence. II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The project will cause no major social or environmental impacts, and the minor impacts that it will have can be readily mitigated and resolved. The environmental impacts of the project are expected to be mostly construction related resulting from dust, soil erosion, minor drainage issues, and disposal of excess excavated materials from drilling of pole holes and ditch for laying underground cable. Operational impacts are expected to be limited to a very low humming sound from transformers. There is no land acquisition or involuntary resettlement arising from the proposed activities since activities will take place within the confines of the existing facilities on land leased by the Solomon Islands Electricity Authority. One proposed sub-project — the extension of the overhead Feeder Line 12 from Lungga to the Honiara East substation — will be carried out within the public road right of way / easement and no new land acquisition or impacts are envisaged. To meet with the Civil Aviation Safety requirements, the power cables crossing the eastern end of the runway will be buried underground, outside the airport boundary fence. The project is located in an urban area and no Indigenous Peoples (IPs) as defined under OP4.10 were found in the project area of influence. Communities from the area(s) of the sub-projects have been consulted to ensure broad community support. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The project would contribute to improving the reliability and efficiency of electricity supplies, and support economic growth. Without the project, people and businesses will experience an increase in the frequency and duration of power supply interruptions, on a power system that already has high levels of outages. No potential indirect and or long term impacts are anticipated due to future activities in the project area. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts: N/A 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described: The construction and operations related impacts of this project will be mitigated through good management practices as per guidance provided in the Environmental and Social Management Framework (ESMF) that has been prepared and disclosed both in country and at the World Bank Infoshop. An ESMF was chosen because even though the locations of the projects are known, design and other details for the projects are not yet available. This ESMF has a screening checklist which will be used to assess each proposed sub-project for any environmental and social impacts. An ESMP which provides specific mitigation measures for any identified impacts will be prepared for each of the sub-projects in the Additional Financing. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people: The key stakeholders are electricity consumers in Honiara. The public consultation process commenced on 29 October 2013, and used media coverage through newspapers, radios, information posters and public meetings, regarding potential Environmental and Social issues relating to the proposed network upgrades and the specific activities of this project around Honiara, in both English and Pidgin. In addition, the project has established wider outreach to other key stakeholder groups including SIWA, Telecom, Pan Pacific, Solomon Island National University (SINU), Ministry of Communication and Aviation (MCA), Seventh Day Adventist Authority (SDA) and Market Vendors. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank November 5, 2013 Date of "in-country" disclosure December 3, 2013 Date of submission to InfoShop December 3, 2013 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP 4.01 - Environment Assessment Does the project require a stand-alone EA (including Yes [ X ] No [ ] N/A [ ] EMP) report? If yes, then did the Regional Environment Unit or Sector An ESMF has been prepared by the Manager (SM) review and approve the EA report? Borrower and reviewed and approved by both the EAP Regional Safeguards Secretariat and SM. Are the cost and the accountabilities for the EMP incorporated in the credit/loan? OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or Yes [ ] No [ ] N/A [ X ] degradation of critical natural habitats? If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? OP 4.09 - Pest Management Does the EA adequately address the pest management Yes [ ] No [ ] N/A [X ] issues? Is a separate PMP required? Yes [ ] No [ ] N/A [ X ] If yes, has the PMP been reviewed and approved by a safeguards specialist or Sector Manager? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? OP/BP 4.11 – Physical Cultural Resources Does the EA include adequate measures related to Yes [ X ] No [ ] N/A [ ] cultural property? Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on physical cultural resources? OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Yes [ ] No [ ] N/A [ X ] Framework (as appropriate) been prepared in consultation with affected Indigenous Peoples? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? If the whole project is designed to benefit IP, has the design been reviewed and approved by the Regional Social Development Unit? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy Yes [ ] No [ ] N/A [ X ] framework/process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Manager review and approve the plan/policy framework/process framework? OP/BP 4.36 – Forests Has the sector-wide analysis of policy and institutional Yes [ ] No [ ] N/A [ X ] issues and constraints been carried out? Does the project design include satisfactory measures to overcome these constraints? Does the project finance commercial harvesting, and if so, does it include provisions for certification system? OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? Yes [ ] No [ ] N/A [ X] Have the TORs as well as composition for the independent Panel of Experts (POE) been reviewed and approved by the Bank? Has an Emergency Preparedness Plan (EPP) been prepared and arrangements been made for public awareness and training? OP/BP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? Yes [ ] No [ ] N/A [ X ] If the project falls under one of the exceptions to the notification requirement, has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? What are the reasons for the exception? Please explain: Has the RVP approved such an exception? OP/BP 7.60 - Projects in Disputed Areas Has the memo conveying all pertinent information on the Yes [ ] No [ ] N/A [ X ] international aspects of the project, including the procedures to be followed, and the recommendations for dealing with the issue, been prepared Does the PAD/MOP include the standard disclaimer referred to in the OP? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to Yes [ X] No [ ] N/A [ ] the World Bank's Infoshop? Have relevant documents been disclosed in-country in a Yes public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ X ] No [ ] N/A [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been Yes included in the project cost? Does the Monitoring and Evaluation system of the Yes project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been Yes agreed with the borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Tendai Gregan 12/05/2013 Environmental Specialist: Anil Somani 12/05/2013 Social Development Specialist Mary Bitekerezo 12/05/2013 Additional Environmental and/or Social Development Specialist(s): Approved by: Sector Manager: Michel Kerf 02/08/2014 Comments: