INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Date ISDS Prepared/Updated: 23-Jul-2012 I. BASIC INFORMATION A. Basic Project Data Report No.: ISDSC764 Country: Africa Project ID: P Project Name: Inga 3 and Mid-Size Hydropower Development TA (P131027) Task Team Philippe J-P. Durand Leader: Estimated 12-Dec-2012 Appraisal Date: Managing Unit: AFTG2 Estimated Board Date: Lending Instrument: 09-Apr-2013 Technical Assistance Loan Sector: Hydropower (100%) Theme: Regional integration (70%), Infrastructure services for private sector development (30%) Financing (In USD Million) Financing Source Amount BORROWER/RECIPIENT 0.00 IDA Grant African Development Bank Total Environmental A - Full Assessment Category: Is this a No Repeater project? B. Project Objectives The proposed Project Development Objective (PDO) is to contribute to the cost-effective development of Inga 3 and mid-size hydropower projects under balanced public-private partnerships. This will be achieved through: (i) strategic advice and expertise to the GoDRC; (ii) key complementary studies (including feasibility studies and safeguards assessments); and (iii) capacity building and institutional development. C. Project Description The project consists in technical assistance provided to the GoDRC to support the development of Inga 3 and mid- size hydropower projects in the DRC.

2 Inga 3 would be developed as a public-private partnership (PPP) and would include an open air intake canal with a dam impounding a small reservoir located in the Bundi valley and have an installed capacity in the range of 4000 MW. According to the prefeasibility study completed in October 2011, this scheme would present lower costs and risks, and shorter implementation schedule, than the Inga 3 scheme with tunnels that was originally planned. It would also kick start future development of Grand Inga under a phased approach matching the evolution of the regional demand. Mid-size hydropower projects (in the range of MW installed capacity) are expected to be runof-river projects. The project includes the following components divided between two Parts: Part A. Support to the development of Inga 3 Component A.1: Strategic advice and institutional support to the GoDRC This component aims at creating the framework for a sound and sustainable development of Inga 3 and of the subsequent stages of the scheme up to the full Grand Inga. Component A.2: Key complementary technical, environmental and social activities studies While detailed design activities for the parts of the project that will fall under the PPP will be conducted by the developers/investors, additional investigations and studies such as geotechnical investigations, topographical surveys, bathymetry, physical scale modeling, hydrology, and sediment management will be managed directly by the public implementation agency and provided to the candidates. In addition to that, this component will include: (i) Detailed engineering for Inga 3 for the parts of the project that will remain in the public domain (intake, cofferdam, canal, dam; (ii) HV transmission lines : feasibility studies for the HV transmission lines (new/reinforced); (iii) ESIA, EMP and RAP for the selected transmission lines routes; (iv) Bidding documents for construction and O&M for the parts of the project that will remain in the public domain (intake, canal, dam, transmission lines); (v) Integration of the various technical studies performed by the developer/investor with those developed by GoDRC; (vi) Review and supervision of the activities performed by the developer/investor and subsequently by the SPV, including the review of the environmental and social mitigation plans; (vii) In preparation for the further developments of the Inga site and namely of the construction of a dam on the Congo River, knowledge and data gathering on the biodiversity in the river in the vicinity of the rapids. Component A.3: Capacity building and communication. This component will include support to establishment and operations of (i) the Inga Dedicated Development Structure, and (ii) the public common infrastructure company, (iii) support to the project implementation unit (GoDRC engineering type of activity), preparation of the IDA support for the implementation phase of the project. Part B. Promote the development of mid size hydropower projects in DRC & carbon finance The mid size hydro projects have been inventoried. The technical assistance will aim at selecting the most promising ones through a desk study and at conducting the prefeasibility study. The goal of this component is to promote the development of mid size hydropower projects in DRC by selecting potential projects, performing the prefeasibility studies and evaluating the possibilities for carbon finance for both Inga 3 and mid-size hydropower projects. This Part will comprise 3 components: Component B.1: Analysis of the institutional framework in the energy sector for mid-size hydro projects. This component aims at determining the best candidate for a Coordinating and Managing Entity in charge of development of mid size projects, identification of the potential capacity gaps; Component B.2: Prefeasibility studies of selected mid size hydropower projects. Component B.3: Carbon Finance. This component will: (i) assess the eligibility for carbon finance

3 for Inga 3 and mid-size hydropower projects; and (ii) develop of a CDM Program of Activities (PoA). Under this component, advice will be provided to the government on how carbon finance operations work in general and an assessment of prospects, options and requisites for carbon finance, and the implications on project design. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The Inga 3 project (also called Grand Inga Phase A) will include a water intake on the Congo River, upstream of the water intake for Inga 1 and 2 existing power stations, an 11 km long canal bringing the waters in the Bundi valley, a 100 m high dam in the Bundi valley and a hydropower station equipped with 8 units releasing the waters in the Congo river downstream of Inga 1 and 2 power stations. The investment cost of Inga 3 is estimated at $33-$35/MWh. Consequently the economic rationale for selecting Inga 3 does not rely on the potential development of subsequent phases of Grand Inga. This is significant from an EIA point of view, as it implies that a detailed study is not required at this stage of the potential impacts of the full Grand Inga development, because full development is not necessary to justify Phase A. A less detailed review of the potential impacts of the full Grand Inga development will be necessary, however, because (i) the proposed design of Inga 3 includes turbines dimensioned to function at both the Phase A and Phase C capacities, after increasing the Bundi dam height for Phase C and (ii) part of the rationale given for selecting Inga 3 canal option is that this will allow the future full development of Grand Inga at a lower cost. The development of Grand Inga Phase C and subsequent phases will have significantly more serious environmental and social impacts because: Phase C and subsequent phases will require the construction of a barrage across the Congo River. It is proposed that only a residual ecological flow of 5,000 m3/s (about 10% of the annual average flow) be released to the 25km section of river between the barrage and the Grand Inga outfall. This reduction in flow, and the barrier presented by the barrage, will have serious consequences for aquatic life and livelihoods; The reservoir to be formed for Phase C and subsequent phases would cover some 40 km2 compared to about 15 km2 for Inga 3, with potentially significant consequences for biodiversity and livelihoods; The barrage will raise the level of the river by 40m at the barrage, raising water levels as far as 180km upstream. This will affect a number of villages and the town of Luozi, and would currently require the resettlement of an estimated 6,300 people; The river segment with raised water levels would extend upstream beyond the point at which the river forms the frontier with the Republic of Congo, with significant trans-boundary considerations. E. Borrowers Institutional Capacity for Safeguard Policies The electricity utility SNEL has an Environmental and Social Management Unit (UGES), which is staffed with 8 specialists (5 environmentalists and 3 social scientists) with appropriate budget, equipment and logistics. UGES has benefited from comprehensive capacity building provided by an international firm under the PMEDE project, as well as from frequent hands-on training from World Bank s safeguards specialists based in Kinshasa. UGES has the capability to conduct and/or supervise EIAs/ESMPs/RAPs, as well as supervise related consultant work. F. Environmental and Social Safeguards Specialists on the Team Paul Jonathan Martin (AFTN3)

4 Antoine V. Lema (AFTCS) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ BP 4.01 Yes The Inga 3 project will require 77ha of land for the canal, and the associated Bundi reservoir will inundate 15.5 km2, including 2.6 km2 of forest land and land used for shifting cultivation. For the Inga 3 project, the Bundi reservoir will not exceed elevation 170.2m; at this elevation no significant negative impacts are anticipated nor on people or nature. However more severe impacts are anticipated in subsequent phases of Grand Inga development when the Bundi reservoir elevation will reach elevation 205m and a barrage will be constructed across the Congo River. The reservoir formed for Grand Inga s subsequent phases (Phases C to G) would cover some 40 km2. The Inga 3 EIA should provide additional information on the four points mentioned in above section D, particularly the first two. In addition, environmental and social assessment of the transmission lines associated to the Inga 3 project (scope and routes still to be determined) will have to be paid special attention, particularly in relation with OP/BP 4.04; 4.36; 4.10; 4.11 and 4.12). Natural Habitats OP/BP 4.04 Yes Four IUCN Red List mammal species have been identified in the Inga area: Chimpanzee (Endangered); Hippopotamus (Vulnerable); Bay Duiker (Least Concern); Sitatunga (Least Concern). Regarding the presence of chimpanzees, local people report the continued presence of chimpanzee in forested areas beyond the left bank of the river at a level adjacent to Inga, and in the hilly areas beyond the right bank just upstream of Inga extending to Luozi. More detail is required in the Inga EIA on the presence of these species, in particular chimpanzee, the potential impact on them of the development of Inga, measures to mitigate this impact, and if possible to improve the protection of these species. Aquatic biodiversity: The Inga zone of the Congo River is rich in diversity of fish species.

5 An evaluation states that 146 fish species have been identified in Inga area, of which only the African Butter Catfish (Schilbe mystus) is included in the Red List (Least Concern in central Africa). However, the evaluation also states that four fish species have been identified as endemic to this part of Bas-Congo. The Inga EIA should be revised to better reflect the Red List concern regarding the impact of Inga development on these species. The evaluation also notes (i) the presence of endemic species of micralestes and micropanchax, which could be threatened by the development of Grand Inga, and (ii) that it is certain that a number of species, particularly those adapted to the deepest parts of the river (up to 100m deep) remain to be discovered. In presenting the report, the consultant also noted the dearth of information on the possible presence and behavior of migratory fish species, which would be particularly impacted by the Phase C barrage. Given the importance of the aquatic diversity in the Inga area, it would be appropriate to initiate as soon as possible long-term support for scientific research that will guide efforts to mitigate these impacts in both the medium-term (i.e. for Grand Inga Phase A or Inga 3) and the long term (i.e. Grand Inga Phase C and subsequent phases), in collaboration with international research centers who are or have been involved in researching the aquatic biodiversity of Bas-Congo. Forests OP/BP 4.36 TBD There are no significant forests in the project area concerned by the Inga 3 hydro project. However existence of potential impact of the transmission lines routes will have to be studied once the anchor customers are known. Pest Management OP 4.09 No No pest management activities are foreseen under the project. Physical Cultural Resources OP/ BP 4.11 TBD No known locations with PCR will be affected by the project. Assessment to be revised once transmission line routes are known. Indigenous Peoples OP/BP 4.10 TBD There are no people in the project area or its immediate area of influence that would be

6 Involuntary Resettlement OP/BP 4.12 Yes classified as indigenous under OP/BP Assessment to be revised once transmission line routes are known. The TA will include a social impact assessment and a resettlement action plan focusing on the Inga 3 project and on the transmission lines routes. In addition to that, although not impacted by the rising of the water level, the resettlement of the10,000 person Camp Kinshasa located within SNEL concession will be considered and any confirmed legacy issues raised by communities affected by Inga 1&2 construction will be addressed all as part of the Inga 3 project. Safety of Dams OP/BP 4.37 Yes The Inga 3 project will include a large dam in the Bundi valley (100 m high) and an important canal. There will be a need to consolidate the geotechnical knowledge of the area and to prepare a preliminary geotechnical baseline report. Sediment management is known to be a critical issue on Inga 1 and 2. An appropriate sediment management strategy will have to be designed for Inga 3 and subsequent phases of the project. A panel of experts for Inga is already in place since March It comprises five specialists (geotechnical, concrete, sediment, dam, electromechanical) who field at least semestrial visits to the site and produce associated reports. Projects on International Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 Yes No OP 7.50 applies to projects that carry out detailed design and engineering studies for hydroelectric projects involving the use of international waterways. The Congo River is an international waterway. The project is not located in a disputed area, nor is the project area likely to become one in the foreseeable future. III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 30-Nov-2012 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing 1 should be specified in the PAD-stage ISDS: TOR for environmental and social studies to be conducted under the TA project should be finalized and disclosed prior to appraisal of the TA project. An environmental and social expert panel will be established under the TA project. 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.

7 IV. APPROVALS Task Team Leader: Name: Philippe J-P. Durand Approved By: Regional Safeguards Name: Alexandra C. Bezeredi (RSA) Date: 23-Jul-2012 Coordinator: Sector Manager: Name: Lucio Monari (SM) Date: 22-Aug-2012