INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA2060 Public Disclosure Copy Date ISDS Prepared/Updated: 21-Mar-2013 Date ISDS Approved/Disclosed: 21-Mar-2013 I. BASIC INFORMATION 1. Basic Project Data Country: Zambia Project ID: P133184 Project Name: Zambia Electricity Transmission and Distribution System Rehabilitation Project (P133184) Task Team Abdolreza B. Rezaian Leader: Estimated 22-Mar-2013 Estimated 30-May-2013 Appraisal Date: Board Date: Managing Unit: AFTG1 Lending Specific Investment Loan Instrument: Sector: Transmission and Distribution of Electricity (100%) Theme: City-wide Infrastructure and Service Delivery (70%), Rural services and infrastructure (30%) Financing (In USD Million) Total Project Cost: 210.00 Total Bank Financing: 105.00 Public Disclosure Copy Total Cofinancing: Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 40.00 International Development Association (IDA) 105.00 EC European Investment Bank 65.00 Total 210.00 Environmental B - Partial Assessment Category: Is this a No Repeater project? 2. Project Objectives The objective of this project is to increase the capacity and improve the reliability of electricity transmission and distribution system in the project target areas. 3. Project Description The proposed project will reinforce and upgrade the power transmission and distribution Page 1 of 6 infrastructure in Lusaka area as a priority to increase the capacity and improve the reliability of the electricity network throughout the area. The proposed project consists of the following three components: Public Disclosure Copy Component 1: Rehabilitation of the 132kV and 88kV Transmission Network in Lusaka Area This component will include (a) Lusaka Transmission Ring Upgrade; and (b) Upgrade / Construction of Bulk Supply Point Substations. Component 2: Rehabilitation of the 33kV and 11kV Distribution Network in Lusaka Area This component consists of the following sub-components: (a) Upgrading of existing distribution substations; (b) Construction of new substations and associated lines; (c) Upgrading of existing 33kV and 11kV distribution lines; and (d) Upgrading / extension of the distribution control system. Component 3: Technical Assistance and Project Supervision. This component will support (i) Technical assistance to ZESCO; (ii) Funding preparation of new electricity infrastructure projects; (iii) Environmental and social mitigation activities; (iv) Engineering and Project Implementation Management consultants; and (v) Capacity building 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project will be implemented in Lusaka area. The Lusaka Transmission network is supplied by two main supply stations, Leopards Hill substation in the East of the city and Lusaka West substation in the West of the city. These substations supply the three main bulk supply points (BSP) into Lusaka: Coventry, Roma and Waterworks. These BSP’s further supply 33kV distribution substations throughout the area, which in turn supply the 11kV distribution network. 5. Environmental and Social Safeguards Specialists Kristine Schwebach (AFTCS) Lungiswa Thandiwe Gxaba (AFTN2) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes The bulk of the activities to be undertaken Public Disclosure Copy BP 4.01 during project implementation involve rehabilitation and upgrading of the existing transmission and distribution networks. The project has been classified as an Environmental Assessment (EA) category B- Partial Assessment. The rehabilitation of the existing 132kV and 88kV transmission network (power lines and substations) to be undertaken under component 1, will involve increase in voltage with associated potential health and safety issues for workers. Under component 2, the upgrading /construction of substations and distribution lines would involve excavations and earth burrowing which would create dust and cause air pollution, generate high levels of noise from heavy machinery, potential clearing of natural vegetation which could lead to soil erosion, accumulate solid and liquid waste from construction materials and lubricants which Page 2 of 6 would pollute land, water and air in the neighboring areas. However, the actual location of the sites for the new substations has not yet Public Disclosure Copy been identified. The project is preparing an Environmental and Social Impact Assessment (ESIA) which will provide a detailed analysis of all potential adverse impacts for component 1 activities (transmission) and provide appropriate mitigation measures for such impacts. For Component 2 activities (distribution network upgrade), a sample ESMP is provided in the ESIA. For addressing ROW encroachment issues, a Resettlement Policy Framework (RPF) is being prepared. In addition, for the activities to be implemented by ZESCO, the Bank will review the TORs to ensure that appropriate safeguard measures will be required as part of the impact assessment for those activities. The implementing agency, ZESO, has already done two rounds of public consultations, one for the scoping phase and the other during the ESIA preparation process. Issues raised during the public consultations will be addressed in the ESIA. Public Disclosure Copy The ESIA and RPF have been reviewed and cleared by the Bank before being disclosed both in-country and at the Bank’s Info-Shop before appraisal. Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 No Physical Cultural Resources OP/ Yes The works are not expected to affect Physical BP 4.11 Cultural Resources as most of the rehabilitation works will be done within the existing transmission and distribution network ROW. However, since new distribution substations will be constructed under component 2, the occurrence of chance finds may not be excluded. The ESIA includes a Chance Find Management Plan. Page 3 of 6 Indigenous Peoples OP/BP 4.10 No Public Disclosure Copy Involuntary Resettlement OP/BP Yes The project may have to acquire land for the 4.12 construction of new bulk supply point and distribution substations. A Resettlement Policy Framework (RPF) will be prepared for outlining the process to be followed when there are affected parties and a Resettlement Action Plan (RAP) will be prepared and implemented for identified areas. Safety of Dams OP/BP 4.37 No Projects on International No Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No 7.60 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts: There may be some way-leave encroachments in different areas along the transmission and distribution lines. ZESCO’s Safeguards unit has already initiated consultations and corrective actions which may result in the clearing of these way-leave encroachments. A Resettlement Policy framework (RPF) is also being prepared for the project. Potential large scale, significant and/or irreversible impacts are not foreseen since during the construction phase, erecting Public Disclosure Copy substations and towers for power lines will happen in existing ZESCO sites. In case of new sites, the substations and power lines would avoid going through any forests and natural habitats including protected areas, swamps/wetlands and any fragile and sensitive habitats. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: There are no indirect and/or long term impacts due to anticipated future activities envisaged in the project area as once the rehabilitation and upgrading activities would be completed, ZESCO would demarcate and secure the areas with assets and maintain the ROW. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The proposed project will reinforce and upgrade existing power transmission and distribution infrastructure in Lusaka area; no alternatives are relevant. 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. ZESCO has prepared an ESIA identifying potential adverse impacts from the project and then provide mitigation measures and environmental and social management plans (ESMPs) for sub- projects. ZESCO’s Environmental and Social Department (ESD) is well resourced and capacitated to prepare and implement environmental and social safeguards instruments. The ESD has Page 4 of 6 implemented a number of Bank funded projects in the past, and is currently implementing two others. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure Public Disclosure Copy on safeguard policies, with an emphasis on potentially affected people. Key stakeholders include the Ministry of Minerals, Energy and Water Resources, ZESCO, and both rural and urban population as well as commercial and industrial enterprises within the Lusaka division of Zambia who will get improved access to electricity through ZESCO. All these parties have been consulted during the scoping meetings in preparation for the TORs for the ESIA and also during the stakeholder consultation process during the preparation of the ESIA as required by the Zambia environmental legislation and World Bank safeguard policies. The Zambia Environmental Management Agency (ZEMA) is responsible for reviewing and clearing safeguards instruments prepared for the projects, and consultations are ongoing between the Agency and ZESCO officials. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 11-Feb-2013 Date of submission to InfoShop 18-Mar-2013 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure Comments: Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 11-Feb-2013 Date of submission to InfoShop 18-Mar-2013 Public Disclosure Copy "In country" Disclosure Comments: 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: N/A C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP/BP 4.11 - Physical Cultural Resources Does the credit/loan incorporate mechanisms to mitigate the Yes [ ] No [ ] NA [ ] potential adverse impacts on cultural property? OP/BP 4.12 - Involuntary Resettlement Page 5 of 6 If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Sector Manager review the plan? Public Disclosure Copy The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] 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 [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader: Abdolreza B. Rezaian Approved By Public Disclosure Copy Regional Safeguards Name: Alexandra C. Bezeredi (RSA) Date: 21-Mar-2013 Coordinator: Sector Manager: Name: Lucio Monari (SM) Date: 21-Mar-2013 Page 6 of 6