INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA6561 Public Disclosure Copy Date ISDS Prepared/Updated: 24-Mar-2014 Date ISDS Approved/Disclosed: 24-Mar-2014 I. BASIC INFORMATION 1. Basic Project Data Country: Bolivia Project ID: P127837 Project Name: Access and Renewable Energy Project (P127837) Task Team Lucia Spinelli Leader: Estimated 24-Mar-2014 Estimated 27-May-2014 Appraisal Date: Board Date: Managing Unit: LCSEG Lending Investment Project Financing Instrument: Sector(s): Other Renewable Energy (40%), General energy sector (60%) Theme(s): Rural services and infrastructure (100%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Financing (In USD Million) Total Project Cost: 58.40 Total Bank Financing: 50.00 Public Disclosure Copy Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 5.15 International Development Association (IDA) 50.00 LOCAL BENEFICIARIES 3.25 Total 58.40 Environmental B - Partial Assessment Category: Is this a No Repeater project? 2. Project Development Objective(s) The proposed Project development objective is to expand access to electricity in unserved areas of Bolivia under a model of electricity access expansion that supports the deployment of the national decentralized framework. 3. Project Description Page 1 of 12 The Access and Renewable Energy Project aims to provide access to modern electricity services in rural areas throughout Bolivia, focusing on those with the greatest needs, high rates of poverty and low rates of electrification. Even though the Project would be national on its scope, it would focus on Public Disclosure Copy the Gobernaciones of Potosí and Chuquisaca, which best fit these criteria and are also capable of assuming debt for the investments in their jurisdictions. Furthermore, the Project would also support capacity building under the new decentralized framework. The Project would be implemented by the PEVD in close coordination with Gobernaciones, municipalities and distribution companies. Project Components The proposed project comprises the following three components, scheduled to be completed over a 7-year period. Project implementation would start on December 1st, 2014 and end by December 1st, 2021. It is also expected the Project will become effective by no later than November 30, 2014 and close on December 1st, 2020. Component 1: Electricity services for rural areas (US$51.70 million total, of which US$43.30 million is IDA). This component would support investments to provide electricity services to households and social institutions (mainly schools) in rural areas and villages. It would be developed through grid extensions or the installation of photovoltaic systems. It includes the following sub-components: Sub-component 1.1 – Grid extension (US$38.30 million, of which US$30.00 million IDA). This subcomponent aims to provide electric power to the rural population through the extension of electricity grids. It would include two main activities: i) extension of low voltage distribution lines and grid densification; and ii) extension of medium voltage transmission and distribution lines and grid densification. Under this sub-component, the credit would also partially finance household connections. Sub-component 1.2 – Individual Photovoltaic Systems (US$12.70 million of which US$12.67 IDA). Public Disclosure Copy This subcomponent will focus on financing the installation of photovoltaic systems in those areas that are not envisioned to be connected to the grid in the next 5 years. The Project will install individual photovoltaic systems in each household . The subcomponent will target households in communities located at least 5 kilometers away from medium voltage distribution lines, accessible at least by motorcycle, or in areas with low population density. The installed capacity of the photovoltaic systems should be around 50 Wp. Under this subcomponent, the Project would also support distribution companies that will be in charge of the operation, maintenance and replacement of PV systems. Sub-component 1.3 – Solar Photovoltaic Systems in Public Institutions (US$0.70 million, of which US$0.60 IDA). This subcomponent aims to support the provision of electricity in schools or other public institutions in rural and impoverished areas. The subcomponent will target schools that have not been benefitted by electrification projects in the selected areas during the 5 previous years. The capacity of PV systems to be installed in each institution would vary according to specific needs. Component 2: Support to Access, Energy Efficiency and Renewable Energy Strategies (US$2.00 million IDA). This component will support the development of activities to design, implement and strengthen various energy strategies enacted by the Plurinational State of Bolivia. In particular, it will reinforce the existing universal access to modern energy services goals, promote the development of pilot projects based on the use of innovative technologies, and advance renewable Page 2 of 12 energy and energy efficiency within the country. The component will finance the development and implementation of a comprehensive operational communication plan to support awareness creation and feedback on the main activities that the Project will be supporting. Public Disclosure Copy Componen t 3: Project Management (US$4.70 million IDA). Under this component, the MHE would manage the overall Project. It will finance staff as well as general supervision tasks, needed infrastructure and equipment, O&M, Project audits and monitoring and evaluation activities. All project implementation tasks performed by the PIU will be funded through this component. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project will be implemented in various departments in the country. • Solar photovoltaic systems would be installed to households, schools, health care and community centers in rural areas of Bolivia that do not have access to electricity. Eligibility criteria for solar PV system would include: (i) provincial governments (gobernaciones) or municipalities with high poverty and indigenous people rates; (ii) population density equal or above 5 users per kilometer; (iii) communities with no rural electrification plans in the next 5 years; and (iv) where the provision of electricity service to smaller and more dispersed population through grid extension or small hydro is increasingly costly. • Eligibility criteria for network densification would include: (i) provincial governments (Gobernaciones) or municipalities with high poverty rates; (ii) average connection density by kilometer of constructed network equal or above 5 users; and (iii) potential consumers located beyond 100 meters from the existing low-voltage transmission lines, as stipulated by the Electricity Law. The project would especially target the poorest communities of Bolivia located in the municipalities of the Potosí and Chuquisaca Departments. In Chuquisaca, 95% of the inhabitants of the Public Disclosure Copy municipalities are Quechua speakers. Statistics from 2005 also show that 64% of the population in Chuquisaca is indigenous, while this number reaches 82% in Potosí. 5. Environmental and Social Safeguards Specialists Noreen Beg (LCSEN) Adam John Behrendt (LCSSO) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes Although the project will have a positive impact BP 4.01 on the environment overall, by improving the supply of energy in rural areas of Bolivia, thereby reducing the use of fossil fuels for domestic consumption, OP/BP 4.01 is triggered because the physical interventions resulting from the implementation of investments under Component 1 (Electricity Services for Rural Areas) could have low to moderate negative impacts on the environment. The Project is classified as Category B- a project with environmental impacts that are Page 3 of 12 easily identified and mitigated-requiring a partial environmental assessment. Civil works resulting from the implementation of investments under Public Disclosure Copy Component 1 (Electricity Services for Rural Areas) will lead to relatively minor air and water pollution during the construction phases and, once the works are completed, limited loss of non- critical animal and plant habitats. These impacts will be assessed through a screening process and appropriate mitigation measures will be proposed. Battery disposal plans, including consumer training and monitoring of disposal, will be incorporated into the solar PV investment component. Expected potential negative environmental impacts will be primarily during the construction phase of civil works. Cumulative environmental impacts are not expected to be significant, as the project is nationwide but relatively limited in scope (most activities would be developed in two provinces – Chuquisaca and Potosí – but a few activities would remain open to other regions). The impacts and relevant mitigation measures are described in the project’s Environmental Management Framework (EMF). The project is expected to result in positive social Public Disclosure Copy outcomes, through its support to improve the quality of life for rural populations in Bolivia as the provision of electricity will contribute to poverty alleviation by improving the education, health and public security and by providing opportunities for economic development. The Borrower has carried out public consultations on the draft EMF with local and regional government representatives, representatives of stakeholders in local communities, and local NGOs. The EMF will document the results of the consultations and will take into account and address stakeholder concerns. Once the EMF is prepared, it will be added to the Project Implementation Manual as an annex. As this is a demand driven operation, the Manual will focus on monitoring and implementation of Page 4 of 12 Environmental Management Plans (EMPs). The Manual will also incorporate eligibility criteria for subprojects (both positive and negative, this Public Disclosure Copy is, that determine the possibility to move forward or not with the development of specific subprojects) and further details and guidelines for the preparation of specific EMPs, as specific sites might not be known at the time of appraisal. The EMPs will cover both direct and indirect impact of project implementation. Natural Habitats OP/BP 4.04 Yes This policy is triggered because sub-projects (both the low voltage distribution lines and the solar installations) may be located in or close to natural habitats. While the project will not support or lead to the conversion of natural habitats, and the EMF will explicitly forbid any project activities inducing significant conversion or degradation of critical natural habitats, this policy is triggered to ensure that minor construction works have EMPs that will protect biodiversity and water resources. The most significant impacts will result from the construction of low-voltage distribution lines and construction of related infrastructure, and appropriate mitigation measures will be followed to limit the impact on local fauna, avi-fauna and to protect indigenous plant and tree species. Public Disclosure Copy Forests OP/BP 4.36 No Although there will be a need for replacement of trees that will be removed along the Right of Way, this safeguard policy is not triggered because the construction of low voltage distribution lines will not lead to the significant degradation and conversion of critical forest areas and forest ecosystems., nor will they affect the management or utilization of forest resources. Pest Management OP 4.09 No This safeguard policy is not triggered because the project will not support activities that require the use or procurement of pesticides. Any land clearing for placement of distribution poles will be undertaken manually. Physical Cultural Resources OP/ Yes This safeguard policy is triggered because civil BP 4.11 works (construction of low voltage distribution lines and installation of poles for domestic PV systems) may affect resources of physical, cultural, and/or historical importance. Given Page 5 of 12 Bolivia’s rich cultural background and the potential for the works to require movement of earth or excavations, chance finds procedures will Public Disclosure Copy be inserted into construction contracts and have been included in the EMF. The local and national Cultural Patrimony, Archaeology Departments, and/or Museums authorities will be notified when chance finds are made. Indigenous Peoples OP/BP 4.10 Yes This safeguard policy is triggered given that the Project Area is mostly inhabited by indigenous peoples of Quechua, Aymara and Guarani groups (some areas up to 95% indigenous, per 2001 census figures-- as disaggregated data is not yet available from the 2012 census). Given the large number of sub-projects across various municipalities, which have yet to be definitively identified, an Indigenous Peoples Planning Framework was prepared for the proposed project The IPPF provides guidance around preparing strategies and activities for engaging and consulting with IP groups and their representatives and will be reflected in specific protocol in the operations manual. Given that the primary project beneficiaries are Indigenous Peoples, concise Indigenous People Plans (IPPs) will suffice. IPPs will be prepared for each municipality, detailing demographic data and capacity requirements, taking into consideration Public Disclosure Copy the cultural and development needs of the communities in each municipality. The IPPF will serve as the overarching guiding document, detailing consultation procedures, monitoring procedures, grievance redress mechanisms for 2 main indigenous populations identified in the social assessment and IPPF. These measures will be primarily implemented by sub-contractors and overseen by the social staff of the IDTR II project. The client has also carried out a social assessment which was a main input to the IPPF and has carried out consultations on the results and key messages of the social analysis and the IPPF. These consultations included indigenous authorities and representatives of the rural organizations, as well as municipal government representatives and local citizens. A final consultation was held on March 13 in Potosi, following up on earlier consultations in Page 6 of 12 Chuquisaca. The Bank team has supported the client with Public Disclosure Copy technical assistance to carry out the consultations, including providing examples and general guidelines on how these could be conducted. Several additional documents were also prepared to support the IPPF and overall social strategy including a summary of best practices from the previous project; and a communications strategy that takes into account indigenous peoples, as well as a series of practical forms and checklists to be integrated into the Operational Manual. Involuntary Resettlement OP/BP Yes Subprojects financed by the Project are likely to 4.12 require minor land easement and/or acquisition, and or temporary land use restrictions due to access roads or other activities part of the installation processes. The Borrower has prepared a Resettlement Policy Framework (RPF) that outlines how potential activities could affect local communities, farmers, indigenous peoples, pastoralists and others and spells out steps to be taken to arrange land acquisitions and compensation, as well as the institutional roles and responsibilities for the different actors involved. Simple forms have been developed to ensure that analysis of alternatives and Public Disclosure Copy appropriate compensation and support to affected persons and communities and are incorporated into the subproject design. All together these will be used to compile the Resettlement Plan which will cover the municipalities involved. The RPF has been reviewed by the Bank team and has been disclosed during the 2nd week of March 2014. Safety of Dams OP/BP 4.37 No This safeguard policy is not triggered because the project will not support the construction or rehabilitation of dams nor will it support other investments which rely on existing dams. Projects on International No This safeguard policy is not triggered because the Waterways OP/BP 7.50 project will not support activities which affect international waterways. Projects in Disputed Areas OP/BP No This safeguard policy is not triggered because the 7.60 project will not support activities in disputed areas. II. Key Safeguard Policy Issues and Their Management Page 7 of 12 A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify Public Disclosure Copy and describe any potential large scale, significant and/or irreversible impacts: The Project will have a largely positive impact on the environment, by improving the supply of electricity, initially in the heavily under-served the rural areas of Potosi and Chuquisaca (percentage of homes without electricity is 43.44% and 30.69% respectively), thereby reducing the use of fossil fuels for domestic consumption. It is also expected to result in positive social outcomes, enhancing welfare for isolated populations in Bolivia’s provinces through the provision of a secure and reliable source of electricity for households and institutions; the opportunity to undertake commercially productive activities; and the secure and timely provision of social services (e.g., security of electricity supply for refrigeration of vaccines). Sub-Component 1.3 consists of the installation of Solar Photovoltaic Systems in Public Institutions. This component plans to support provision of electricity to around 1,700 un-served schools and other public institutions (which can include health centers) in rural areas. These planned household electricity connections and solar PV installations will allow for “greener” expansion of electricity access, by replacing isolated diesel units with expanded grid-based electricity and solar energy. The increase in electricity access is also expected to reduce the use of firewood, and will have important health (through the provision of refrigeration facilities to clinics) and educational benefits (through the provision of electricity to schools and households). Physical interventions resulting from the implementation of investments in rural areas could have low to moderate negative impacts on the environment, depending on their locations. The most significant impacts will result from the construction of low-voltage distribution lines and construction of related infrastructure, and appropriate mitigation measures will be followed to limit the impact on local fauna, avi-fauna and to protect indigenous plant and tree species. Clearing of vegetation and trees will be strictly controlled. Affected areas will be re-vegetated with Public Disclosure Copy indigenous grasses, shrubs, trees, and flora to limit impact to local flora and fauna. A solar battery disposal plan has been prepared, including consumer training, and there will be periodic monitoring of removal and final safe disposal of solar batteries. Given that some substations may be near residential, commercial, and institutional areas all substations should have adequate fire and blast resistant walls. Capacitor banks, circuit breakers, lightning arrestors, and battery rooms should be adequately protected. Fire safety plans (depending on proximity to residences or public institutions, particularly schools) should be prepared and tested with drills. For social safeguards, no major large scale negative impacts are expected from land use acquisition, livelihood of communities or individuals or indigenous peoples. Indigenous communities and educational facilities will benefit from electricity use, improved communications as a result of cell phone charging abilities, reduced work-load for women and children as a result of pumps, and additional time for studying at night. A gender analysis has been included as part of the preparation, both in the social analysis as well as through the support of a Bank contracted gender and energy expert. This will provide particular focus on benefits to rural, indigenous women from electricity use. Page 8 of 12 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The provision of electrification or solar batteries will lead to a replacement of alkaline batteries Public Disclosure Copy currently used for lamps and small appliances. A disposal plan has been prepared to ensure that these batteries are adequately disposed of. Electricity use will certainly improve the overall social conditions of the region and contribute to productivity. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Without a program of rural connections to the grid or appropriate off-grid solutions, the Government would not be able to advance its program to bring the benefits of electricity to lower income, rural consumers. Solar PVC will allow access to some of the most distant and isolated communities which would have been left out if only grid extension had been considered. 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 location of a majority of sub-projects will not be identified prior to appraisal, and therefore different Environmental and Social instruments have been prepared in response to the triggered safeguards. These include an Environmental Management Framework, Social Analysis, a Resettlement Framework and an Indigenous Peoples Planning Framework (IPPF) all carried out by the client with support from the Bank A draft of these instruments were consulted through regional consultation process with a variety of stakeholders including indigenous peoples, municipal authorities and private sector. In addition, the EMF was consulted upon at a stakeholder meeting attended by variety of experts in La Paz. Documented evidence of informed and transparent consultations with stakeholders has been included in the relevant documents. These documents were prepared building on lessons learned from the implementation of the framework of social and environmental assessment prepared for the Bolivia Decentralized Infrastructure for Rural Transformation Project (ITDR 1). The various instruments contain guidance on working with indigenous peoples and consultaitons, and on screenin screening criteria for sub-projects. Public Disclosure Copy Sub-project EIAs/EMPs will be prepared, consulted upon and disclosed prior to the commencement of civil works. While the project will not support or lead to the conversion of natural habitats, and the EMF explicitly forbids any project activities inducing significant conversion or degradation of critical natural habitats, EMPs for all civil works will contain guidelines for the protection of biodiversity and water resources. The EMPs will address both direct and indirect project impacts, and the appropriate mitigation measures. The EMF also contains a battery disposal plan which will be implemented by a private sector contractor with experience in battery collection and appropriate disposal. A resettlement framework has been prepared which also provides potential cases of affectations and number of checklists and formats for gathering information necessary to identify and resolve affectations of beneficiaries or non-beneficiaries. These will be incorporated into the operations manual. The IPPF will provide overall guidance to engaging the 2 major indigenous populations in the area to assure consultations and benefits for these groups. Plans will be prepared by the client at municipal levels on how to engage the specific indigenous populations in those areas and checklists and formats have been prepared as part of the IPPF. These will also be incorporated into the operations manual. The Electricity Program for Living with Dignity (PEVD), within the Vice-Ministry of Electricity and Alternative Energy’s Alternative Energy General Directorate, will be the project executing Page 9 of 12 agency. It is expected that the PEVD’s project implementing unit (PIU) will include environmental and social specialists. These specialists will be responsible for ensuring compliance with Bank Operational Policies related to environmental and social safeguards, and with Public Disclosure Copy Government of Bolivia rules and regulations. Prior experience with the Decentralized Infrastructure for Rural Transformation project (ITDR project) exposed the Borrower to the Bank's social and environmental safeguard policies but also evidenced high demand for Project implementation support. The project budget provides funds for capacity building on timely and effective application of social and environmental management and safeguards. The client has prepared all of the relevant assessments and frameworks, which should now be translated into more actionable steps in the operations manual and relevant training and orientation for project implementers. The Bank has also supported the client with technical assistance concerning gender and indigenous women in particular. Consultations were held with a variety of stakeholders including indigenous peoples in both Chuquisaca and Potosi. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The primary stakeholders include rural communities, indigenous peoples, municipalities and departmental governments, private sector service providers, rural producers unions, representatives of women's groups, and school teachers and educational authorities (as some schools will benefit from PVC and electric). The principle of free, prior and informed consultation throughout the project area has been pursued during project preparation and will be continued during implementation. In practice this has meant provision of written and visual materials in form, substance and language appropriate for the audiences. The consultations and information provision about the project have been held at community and municipal and departmental levels, where indigenous leaders, community Public Disclosure Copy representatives, municipal and departmental authorities, NGOs and others have participated. Final consultations in Potosi to be held week of March 10. The consultations were led by the social and environmental consultants for the client. To ensure effective communications with a large and diverse group of stakeholders, the Project Implementation Unit has put in place a communication and outreach plan, aimed at maintaining the understanding and ownership of the project throughout its cycle. The plan has been crafted considering the characteristics of the target population namely, socioeconomic, cultural and health conditions, access to media in all formats and land ownership. The plan primarily follows the stages of the project – preparation, and implementation and it pays particular attention to reinforcing the continued usage of the technology/ies after it has been initially adopted. Minutes of stakeholder meetings, including measures proposed to address grievances, will be included as an Annex to the environmental and social safeguard instruments. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 21-Mar-2014 Date of submission to InfoShop 21-Mar-2014 Page 10 of 12 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure Public Disclosure Copy Bolivia 21-Mar-2014 Comments: Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 20-Mar-2014 Date of submission to InfoShop 20-Mar-2014 "In country" Disclosure Bolivia 20-Mar-2014 Comments: Indigenous Peoples Development Plan/Framework Date of receipt by the Bank 20-Mar-2014 Date of submission to InfoShop 20-Mar-2014 "In country" Disclosure Bolivia 20-Mar-2014 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: C. Compliance Monitoring Indicators at the Corporate Level Public Disclosure Copy OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? If yes, then did the Regional Environment Unit or Sector Yes [ ] No [ ] NA [ ] Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or Yes [ ] No [ ] NA [ ] degradation of critical natural habitats? If the project would result in significant conversion or Yes [ ] No [ ] NA [ ] degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural Yes [ ] No [ ] NA [ ] property? Does the credit/loan incorporate mechanisms to mitigate the Yes [ ] No [ ] NA [ ] potential adverse impacts on cultural property? Page 11 of 12 OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework Yes [ ] No [ ] NA [ ] (as appropriate) been prepared in consultation with affected Public Disclosure Copy Indigenous Peoples? If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Sector Manager review the plan? If the whole project is designed to benefit IP, has the design Yes [ ] No [ ] NA [ ] been reviewed and approved by the Regional Social Development Unit or Sector Manager? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/ Yes [ ] No [ ] NA [ ] process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Sector Manager review the plan? 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? Public Disclosure Copy 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: Name: Lucia Spinelli Approved By Sector Manager: Name: Malcolm Cosgrove-Davies (SM) Date: 24-Mar-2014 Page 12 of 12