Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Date prepared/updated: 10/09/12 I. Basic Information INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE 1. Basic Project Data Country: Kiribati Project ID: Pl21878 IAdditional Project ID (if any): Project Name: Grid Connected Solar PV Central Station Project Task Team Leader: Kamlesh Khelawan Estimated Appraisal Date: 15 September 2012 CDApoal Date: 30 November 2012 Managing Unit: EAP Instrument: Grant Sector: SDN Theme: Climate Change IBRD Amount (US$m.): NIL IDA Amount (US$m.): NIL GEF Amount (US$m.): 1.00 PCF Amount (US$m.): Other financing amounts by source: PRIF $2.92m Environmental Category: C Is this a transferred project Yes [] No [] Simplified Processing Simple [} Repeater [r] Is this project processed under OP 8.00 (Rapid Response to Crises and Yes No[] Emergencies) 2. Project Objectives: This ISDS is for the Kiribati Grid Connected Solar PV Central Station Project. The project goal is to contribute to reduce Kiribati's dependence on imported petroleum for power generation in order to improve energy security and to reduce the GHG emissions from diesel fuel use for grid electricity supply in Kiribati. The specific objective of the proposed MSP is to serve as a catalyst for the substitution of the diesel based electricity generation for the South Tarawa grid by grid-connected solar PV supply of electricity. 3. Project Description: Project Components: Investment Component About 500 kwp (kilowatt peak capacity) of grid solar PV without storage to kick-start a staged implementation strategy for grid connected solar PV over the medium-term. The solar PV arrays will be installed and managed at four technically suitable locations, with associated inverters to enable grid in-feed at each location. The feasibility study undertaken in 2012 has taken into account engineering, economic and market conditions and has determined the sizing and key specifications of the power stations, taking into account load shape characteristics and operational and system reliability considerations that may arise from injecting the power into the S. Tarawa grid system. Design considerations take into account the maritime environment within which the equipment must function reliably. The project investments will be built, owned and operated by Tarawa Public Utilities Board (PUB). For procurement purposes, the project will be implemented largely on a "design, supply and install" contract for the solar PV installation, and include a 3 -year operations and maintenance (O&M) and capacity building program to cover the entire project duration, while PUB gains experience in O&M and builds its capacity to initiate and manage future investments. The Consultants will also prepare technical bid documents for the design, supply and install contract and for ongoing capacity building and maintenance programs.

2 The solar PV installations will be on government facilities on sites that are owned or leased by the government under long term lease arrangements. The project assets can be relocated without substantive risk to project outcomes in the unlikely event that any access issues arise on expiry of government land leases. Technical assistance The technical assistance component of the project includes the following: 1. Implementation Consultant (Employer's Engineer) to assist PUB, including: supporting preparation and technical evaluation of contractor bids received for construction of solar power stations, supervision of contractor through commissioning and plant's operational integration including monitoring systems and safeguards supervision. 2. Preparation of a short to medium term development and implementation plan for PUB grid system based on least cost options for additional grid connected solar PV (central and distributed) to meet demand and reduce dependence on diesel for power generation and safety considerations. [This has been completed as part of the feasibility study undertaken during the project preparation]. 3. Recommendations for improving the financial viability of PUB and the sector. 4. Technical assistance, including training for PUB staff for the solar power station operations and maintenance, capacity building and appropriate support to ensure compliance with Bank safeguards applicable to the project, as well as financial management. 4. Project Location and salient physical characteristics relevant to the safeguard analysis: The project's physical investments will be located at four sites in South Tarawa, Kiribati. These four sites have been chosen based on the fact that they minimize any environment and social impacts, are on sites and based on their suitability to produce solar power, and are located on facilities owned and operated by the government; on land owned or leased by the government. The sites are: (1) Tungaru Central Hospital in Nawerewere (roof-top installations on 9 buildings); (2) Kiribati Institute of Technology (KIT) in Betio (one existing roof-top installation, two installations on new buildings to be constructed; (3) Betio Sports Complex in Betio (one roof-top installation); and (4) King George V Secondary School in Bikenibeu (five roof-top installations). All installations are to be on existing roofs except at KIT, with some roofing to be replaced where the roofs show signs of rust. Borrower's Institutional Capacity for Safeguard Policies The PUB has not worked with the World Bank before on any investment projects and therefore has no experience with World Bank Safeguards Policies. However, the safeguards-related risks of this project are very low and any required capacity building needs necessary for the PUB to successfully manage the safeguards aspects will be done through the TA component of the project. In addition, the project will provide funding for an Employer's Engineer and a local support officer to assist PUB with the day to day supervision of the implementation of the Environmental Management Plan. It is worth mentioning that there is already existing capacity in some ministries in Kiribati in dealing with World Bank Safeguards - in particular the Project Management Units (PMU) set up for the Kiribati Adaptation Project III (KAP III) and the Kiribati Road Rehabilitation Project. If necessary PUB can work together with these PMUs in order to increase their capacity to manage any safeguard concerns. 5. Environmental and Social Safeguards Specialists on the Team: Ms. Pene Ferguson (Consultant) Mrs. Ann McLean (Consultant)

3 6. Safeguard Policies Triggered (please explain why) Yes No OP/BP 4.00 Environmental Assessment (OP/BP 4.01) Potential adverse environmental impacts are only anticipated to be present during the construction/installation of the solar power generation systems on the building roofs. However, such impacts are expected to be minor and site-specific. They can be easily avoided or effectively managed through the use of readily available, simple and cost effective mitigation measures, Therefore, in compliance with OP4,01, the team has assigned an EA Category of "C" to the project. The PUB has prepared an Environmental Management Plan (EMP) as part of an environmental assessment, The EMP will be included in the civil works contract for use during construction. The provisos of the EMP during construction will be binding upon the civil works contractor. Natural Habitats (OP/BP 4.04) The policy is not triggered because the project will not cause adverse impacts on any natural habitats at any time during construction or operation of the system. No land outside of the boundaries of the existing properties is required for the solar power generation systems to be installed. No off-site impacts from obtaining materials (e.g., reef aggregates) for leveling or other construction purpose are expected either. Forests (OP/BP 4.36) The policy is not triggered because the project does not involve any activities that would affect the health/quality of forests, or the rights/welfare of people who depend on forests for livelihoods, or the management/protection/utilization of natural forests or plantations. Pest Management (OP 4,09) The policy is not triggered because no use or procurement of pesticides is needed. Physical Cultural Resources (OP/BP 4.11) No Physical Cultural Resources (PCR) are present at the potential sites where solar power systems are to be installed. Indigenous Peoples (OP/BP 4.10) Kiribati is a homogenous society - 99 percent of the population consists of I-Kiribati indigenous people and the remainder of recent migrants such as Tuvaluans and Europeans, The 1-Kiribati are not marginalized or vulnerable and enjoy full legal status. They are organized along family and kin lines and speak one language, I- Kiribati, English is also considered a local language, particularly in government. The communities living around the currently identified project area are likely to host people who have an ancestral attachment to the land (original landowners) however, these communities will not have a separate language, separate institutions, nor will they self-identify as indigenous peoples. Therefore the Indigenous Peoples policy is not triggered by this project, Involuntary Resettlement (OP/BP 4.12) All selected locations are on Government owned or leased land, Therefore, no conflicts with landowners due to modified or additional land use are expected. Land acquisition will not be needed for the project.

4 Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) N/AT Projects in Disputed Areas (OP/BP 7,60) N/A 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 if successfully implemented, operated and maintained will have significant environment benefits mainly derived from the switch of power generation fiom a fossil fuel (diesel) source to a renewable source (solar energy). There is no decommissioning of diesel generators, and no use of batteries as part of this project. Potential adverse environmental impacts are only anticipated to be present during the construction/installation of the solar power generation systems on the building roofs. However, such impacts are expected to be minor and site-specific, They can be easily avoided or effectively managed through the use of readily available, simple and cost effective mitigation measures, Furthermore, to ensure the construction-related environmental and social impacts are effectively managed, the PUB has prepared an Environmental Management Plan (EMP) as part of an environmental assessment, The EMP will be included in the civil works contract for use during construction and will be binding upon the Contractor. It contains tangible mitigation measures, institutional responsibilities for their implementation and monitoring, during both construction and operation of the system, and budget estimation to ensure adequate funding is available to implement the EMP. It also includes management measures for ensuring safety at these sites during the physical works, especially at hospitals and schools. A grievance mechanism is included. As required in the EMP, the implementing agency will also assign a dedicated officer to address any public concerns or complaints during construction, The costs in the EMP will be included in the overall cost of the project. The EMP has been cleared and publicly disclosed, both locally in Tarawa and at the Info shop, 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: No adverse impacts expected. generation. There will be positive benefits from the substitution of diesel electricity 1 OP/BP 7.50 and OP/BP 7.60 are not eligible for piloting under OP 4.00

5 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts: The project involves installation of grid connected renewable energy (solar panels) on sites owned and operated by the Republic of Kiribati on land that is under long term lease arrangements. All sites are located on buildings to minimize the land required for energy generation. The alternative (free standing solar arrays) would take up valuable land that could not then be used for other purposes. 4. For those safeguards to be addressed through OP/BP 4.00, characterize in general terms the extent to which borrower systems are equivalent to the Objectives and Operational Principles of OP 4.00, Table Al. For those safeguards to be addressed through conventional OP/BPs, identify the reason for the decision to not apply OP 4.00 (e.g. absence of equivalence and/or acceptability report). OP4.00 is not applicable. 5. Describe measures taken by the borrower to address safeguard policy issues to identify any significant gap-filling measures necessary to fulfill the conditions for application of OP Provide an assessment qof borrower capacity to plan and implement the measures described: OP4.00 is not applicable. 6. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, including the Safeguard Diagnostic Review (SDR) with an emphasis on potentially affected people: As OP 4.00 is not applicable, SDR is not required. B. Disclosure Requirements Date Public Information Bulletin and Environmental Management Plan: Dates of "in-country" consultation and disclosure 6 July 2012 Date of submission to InfoShop 04 July 2012 For category A projects, date of distributing the PID to the Executive Directors Category C project. 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/ Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes [] No [] N/A [] The borrower engaged TTA (environmental consultants) to complete an EA and EMP. Under the safeguards policy, the project required as a minimum an Environmental Code of Practice to cover constructionrelated activities. If yes, then did the Regional Environment Unit or Sector Manager Yes (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the Yes credit/loan? OP/BP Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects Did the Quality Assurance and Compliance Unit (QACU) and the Yes [ ] No [] N/A [ ] ESSD and International Law Practice Group (LEGEN) review and approve the Safeguard Diagnostic Review report?

6 OP/BP Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? Yes [ ] No [ ] N/A 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 Pest Management Does the EA adequately address the pest management issues? Yes [ ] No [ ] N/A [] Is a separate PMP required? Yes[] No[ ] N/A [] 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 Physical Cultural Resources Does the EA include adequate measures related to physical cultural resources? Yes [ ] No [ ] N/A [] Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on physical cultural resources? OP/BP Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as Yes [ ] No [] N/A [] 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 Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? Yes [ ] No [ ] N/A [] If yes, then did the Regional unit responsible for safeguards or Sector Manager review and approve the plan/policy framework/process framework? OP/BP Forests Has the sector-wide analysis of policy and institutional issues and constraints been carried out? Yes [ ] No [ ] N/A [ ] 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 Safety of Dams Have dam safety plans been prepared? Yes [ ] No[ N/A 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 Projects on International Waterways Have the other riparians been notified of the project? Yes [ ] No [ ] N/A [] 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?

7 OP Projects in Disputed Areas Has the memo conveying all pertinent information on the Yes [] No [] N/A [] 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 the World Yes [] No [ ] N/A [] Bank's Infoshop? Have relevant documents been disclosed in-country in a public place Yes 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 [ ] N/A [ responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the Yes. The project provides for an owner's project cost? engineer, who will also oversee the implementation of/compliance with the EMP; The project budget provides for a local PST support officer who will assist with the dayto -day issues in relation to the EMP; The environmental and social contacts have been identified within the Ministry of Public Works and Utilities (government in kind); and The Ministry of Environment, Lands and Agricultural Development will oversee compliance with local legislation (government in kind). Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes Yes as per clause 2.03(b) of both the GEF and PRIF General Agreement documents.

8 D. Approvals Signed and submitted by: Name Date Task Team Leader; Kamlesh Kh 30 August 2012 Environmental Specialist: Pene Ferguson 10 September 2012 Social Development Specialist: Ann McLean 7 September 2012 Approved by: Sector Manager H Comments: