KAZAKHSTAN SEMEY STREET LIGHTING SYSTEM MODERNISATION PROJECT PROJECT PREPARATION TERMS OF REFERENCE

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1 KAZAKHSTAN SEMEY STREET LIGHTING SYSTEM MODERNISATION PROJECT PROJECT PREPARATION 1. INTRODUCTION TERMS OF REFERENCE The European Bank for Reconstruction and Development (the EBRD or the Bank ) is considering a senior loan of up to KZT 2.1 billion (EUR 5.1 million) or its equivalent in USD (the Loan ) to GKP Semey (the Company or the Borrower ), which is wholly owned by the Akimat of the City of Semey (the City Akimat ) to upgrade the urban street lighting system ( SL ) in the City of Semey (the City ) in the Republic of Kazakhstan. The Akimat of Eastern Kazakhstan Oblast (the Oblast Akimat ) and the Akimat of Semey City (the City Akimat ) have approached the EBRD with request to assess the possibility of financing SL modernisation projects in the City. Growing electricity and maintenance costs have forced the City Akimat to explore long-term, sustainable options to improve the lighting system s efficiency. Given the lack of investment in the sector in the past decade, and a lack of transparency in the contractual arrangements between the City Akimat and the existing operators, the Bank have been asked to assist with the project implementation and with bringing energy savings, operational efficiency and balanced contract relations to the sector. The current status of SL systems in the City features insufficient coverage, deteriorating power supply infrastructure, excessive demand and poor system management. There is also a need to increase the number of lights taking into account insufficient coverage by SL and natural expansion of the City. As a result of the country-wide privatisation programme of state assets municipal SL system in the City was privatised in the late in 90s. However, private companies were not able to provide proper services while the sector lacked institutional setup for the private sector involvement. Contractual arrangements between the City and private operators were of poor quality, operations lacked transparency, and City was not able to control operations in terms of costs management, while private operators were not incentivised to invest into operations. Eventually, private operators started leaving the sector and transferred / sold poles back to the City. The components of Project are expected to include, inter alia: (i) procurement of more energy efficient modern luminaries to replace existing outdated street lights, (ii) centralised control centre and monitoring solutions for the system; (iii) separate transformation sub-stations for SL equipped with relevant technical solutions, and (iv) new poles/lighting points if confirmed necessary. In parallel with the hardware investments, the Project will contribute to the development and institutional strengthening of the Borrower in respect of procurement, corporatisation, creditworthiness enhancement and an improvement of the environmental situation in the City. The Project is expected to aim at better service quality and improved environmental standards due to significantly reduced energy consumption, avoided CO2 emissions and lower O&M costs of SL in the City. 1

2 On this basis, the Bank is looking to engage a suitably qualified reputable consultancy firm or consortium of consultancy firms (hereinafter the Consultant ) to prepare a feasibility study ( FS ) for the Company and the City. 2. OBJECTIVES The overall objective of the assignment is to prepare the FS for the Company, the Oblast and the City Akimats to be used by (i) the Bank to appraise the Project and take a decision on the prospective financing and (ii) the GOK in approving capital grant allocation in accordance with the budget legislation of the GOK and rules of the Enhanced Partnership Framework Agreement ( EPFA ) Programme. 3. SCOPE OF WORK 3.1 Technical Assessment and Preparation of Technical Specifications: 1) Review, summarise and document any road and street development plans, available studies and the City s investment proposals; 2) Analyse, to the extent possible, and comment on the current SL system and its maintenance, standards, suggest areas for improvements (e.g. correcting fixtures angles), including for proper trimming of tree branches, reduction of the energy waste (i.e. SL operation during day-time as may be the case), removal of illegal power connections/electricity theft, cessation of the practice of night-time phase-outs (to reduce energy consumption as might be the case); 3) Analyse the quality of the energy supply to establish the need for protective equipment for any upcoming new systems roll-outs; 4) Analyse remote lighting control and monitoring systems available in the market, benefits and drawbacks of the usage of each of them as well as conduct costs comparison; 5) Establish the scope for using SL dimming against available information about traffic intensity and road lighting requirements for all applicable road categories; 6) Analyse potential for use of motion sensors to be attached to dimmers and SL controls and advise on their appropriateness as regards the Project given reliability and maturity of the best available technologies taking road safety as the key purpose of the SL retrofit and therefore as the primary consideration; 7) Assemble and review all available designs and mapping for the proposed investments, and advise on any additional design work that may be required; 8) Detailed asset inventory, including quantity, age, current condition, main technical parameters, and type of the assets. The inventory should group all streets in categories based on type of street (main corridor, residential lighting, parks, etc.), distance between and height of columns, electrical components, electrical cabinets, type and power of lighting points and their ownership; 9) Review and comment on the need to replace light columns and fixtures and the need to install new light columns, and propose realistic plan indicating approximate number of columns to be replaced and to be installed during the next 10 years; 10) Discuss with the City and comment on the SL standards for each category of the street in the technical and functional parameters. A few main options have to be supported by indicative CapEx and OpEx estimates as well as resulting indicative energy savings; 2

3 11) Establish process and methodology for the introduction of energy efficient systems in the City; 12) Conduct discussions with the relevant energy commissioner/energy supplier with regards to an 'energy efficiency'-focussed tariff structure and self-metering; 13) Establish processes and methodology for the identification and removal/rectification of unnecessary lighting and over-lit areas; 14) Generate all the required inputs into the Technical Specifications that will form basis for requirements for the equipment and services to be procured. The Consultant should at the minimum consider (but shall not constrain their recommendations to) the following technical elements of the equipment to be procured: o Compliance of luminaire s photometric characteristics with national and international road requirements for the road types/categories to be installed on; o Minimum luminaire s luminous flux - specify what light flow per lamp and per light point is needed and how the distribution is needed (depending on width of the road and distance between poles and height of poles this varies); o Light distribution for lighting points; o Maximum luminaire s glare; o Minimum installed lighting levels and luminous flux; o Minimum guaranteed service life, including warranted luminous flux over the set values for lamp life and a required maintenance factor; o Minimum and maximum IP and IK values for each road category; o Minimum required impact resistance and water/dust tightness of the luminaire; o Maximum environmental temperature for operations; o Minimum quality requirements for power cabling and connectors; o Heat sink construction and long-term heat-sink capacity (to ensure easy clean-up and protection against dust and foliage build-ups over the service life (assumed to be equal to or longer than the loan tenor)); o A list of laboratory tests that should be provided by the proposed equipment. Minimum quality (purity) of the aluminium heat sink alloy; o Minimum thickness of the anodizing layer, if appropriate; o The lowest and highest operating temperatures (to be in line with national requirements); o Modularity of the components set-up (to permit easy replacement of faulty drivers, sensors, dimmers, and any control print-circuit boards (PCBs) as may be applicable), if appropriate; o Minimum quality of components of the luminaire s driver (to ensure effective protection against poor voltage quality, such as voltage fluctuations, power surges, high reactive load, car accidents and other events leading to power line breakdowns), and a separate surge protection block for driver protection; o Decide and agree with the City on the ease of reprogramming dimmers (to ensure this can be done preferably from the operator s workstation or from mobile or - at a minimum - switch-gear-box-based remote controls); o Aesthetics of luminaire s design (particularly applicable for city s historical areas) to be established after consultations with relevant City authorities and the Company; o Functionality and ease-of-use (preferably to be multi-platform-based) of the remote monitoring and control system; o Specifications on the technical solutions for transformer substations, including but not limited to the following: 3

4 o automated metering system with differential time-of-the-day rates capability (where absent), automated relay protection and disconnection equipment (to protect the various components of the new lighting system from voltage fluctuations, power surges, outages, lightning strikes and other adverse events). Formation of the design solutions list and break-up of total number of lights by the certain design solutions. Full matching of all streets by certain design solutions from the list. 3.2 Economic and Institutional Assessment 1) Assess Project s technical feasibility and environmental standards (in terms of quality, maintenance optimization, modularity of components with short service life, and reliability); 2) Rationale and justification for the Project components and investments taking into consideration the current technical condition of selected streets and related infrastructure and best international modernization practices such as dimming, sensors, and intellectual controls; 3) Justification of its high priority in terms of the internal rate of return ( IRR ); 4) Economic review in terms of the economic internal rate of return ( EIRR ); 5) Social aspects (affordability, safety, physical appearance, particularly in highly visible pedestrian and historical areas. The latter parameter is to be established after consultations with relevant City authorities and the Company). 6) Study and confirm the new and innovative green technology, specifically in carbon/economic savings, to be achieved in the Project. Compare both LED and conventional technology (e.g. sodium); 7) Provide current costs associated with the new lighting infrastructure and estimate a five- and ten-thirteen-year outlook of the potential cost reduction of the same infrastructure in case of an instant implementation, and then compare the cost savings with the costs of: (i) delayed implementation, (ii) implementation using small budget allocations spread across a span of 5-10/13 years, (iii) immediate (6-12-month) implementation financed by a loan to the City. The comparison shall include cost savings, including energy, operation and maintenance, carbon savings and management streamlining. 8) Collect inputs for financial review of the proposed investment, including confirmation of cost estimates and operational assumptions for financial model projections; 9) Using attached tables in Annex 1 present findings in monetary and physical units and split by each component for baseline vs after project scenarios, and provide physical indicators data to be used for monitoring the project by the EBRD and the donors. 3.3 Market Scoping for Private-Sector Interest 1) Develop templates for market sounding for the involvement from the private sector contractors under a Design-Supply-Install & Operate-Maintain ( DSIOM ) contract; 4

5 2) Perform a Market Scoping Study for interest of the private-sector energy efficiency street-lighting engineering community for a single Supply-Install and a long-term O&M contract preferably with a 10-year equipment warranty (which should protect against equipment failures). 3) Propose a general evaluation methodology with appropriate criteria for tendering out the DSIOM SL. 4) Provide a clear set up for the division of responsibilities between the Company and the contractors implementing DSIOM. The Consultant should take into account that the responsibility shall rest with most appropriate party, i.e. with those in control of the situation. 5) Present a set of KPIs, their desired levels and penalty system for use in the DSIOM contract and to be mirrored in the PSC. 3.4 Legal Due Diligence and Public Service Contract: 1) Assess legal issues of associated investment and verify legal structure of the Project proposed during concept stage; describe the legal and institutional framework governing the status and operations of the Company (legislation, statutes, service agreement, any price regulations, etc.) and identify legal requirements influencing the implementation of the investment programme; 2) Using the template provided by the Bank reconfirm and finalise a long-term public service contract or similar type of agreement ( PSC ) to be concluded between the Company and the City to allow necessary payments from the City to the Company to cover debt service as well as all obligations of the company under O&M contract as well as establishing service levels, including: the adequate procurement strategy of PSC in line with the legislation of the Republic of Kazakhstan, including (i) the timing of the tendering, and (ii) confirmation of appropriate procedures for awarding of the PSC (state procurement tender or direct contracting, etc.); a maximum eligible cost per service unit to be applied in formula for estimation of service payment in relevant period as well as provide a justification for this service cost per unit in light of existing best international benchmarks; a separate annex on indexation of maximum eligible cost per service unit formula. It should be based on officially published indexes or documented prices; a justifiable fixed profit margin on top of service cost to be paid to a Company, if its profit cannot be claimed and paid by the City Akimat differently, i.e. as part maximum eligible cost per service unit; 3) Agree final PSC with the Bank, the Company and the City; 4) Document the PSC preparation process and report to the Bank, including explanations on how each particular point of this task was addressed and incorporated in the PSC; 5) Develop a Term Sheet for Company s contracts (including the insurance/warranty clauses) with private contractors/operator (described in Section 3.5 above). 3.5 Procurement Plan 1) Prepare a section for the tender package containing functional specifications of the equipment to be procured during the project implementation based on the inputs of the completed Technical Assessment; 5

6 2) For each of the sub-components of the Project develop reasonable estimates of quantities and costs based on applicable previous bidding experience in the country and the region accounting for the difference in logistics costs as well as in tax and customs regimes; 3) Develop a preliminary procurement plan in EBRD standard format and acceptable to the Bank with detailed descriptions of all project components grouped into categories and expected contracting packages/lots and roll-out/implementation/commissioning schedules; 4) Identify, assess and elaborate local requirements necessary for obtaining the approvals from the State Expertise and other applicable public authorities and regulators. 3.6 Environmental And Social Due Diligence The Consultant will undertake the environmental and social (E&S) due diligence (ESDD) of the Project to make sure it is structured in line with EBRD s Performance Requirements under 2014 Environmental and Social Policy to ensure consideration and implementation of the E&S requirements, conclusions and recommendations into the Technical Scoping work and relevant future contract requirements. ESDD will involve the following components: a corporate environmental, health, safety, social and labour (EHSSL) review of the existing operational performance and corporate risk management practices of the client (relevant City departments). This review will focus on the client s existing E&S capacity, management systems, corporate procedures and policies, contractor management practices, as well as operations and assets/facilities and will benchmark those against EBRD PRs, including preparation of a Compliance Summary table with the Bank s PRs.; identification of the key environmental and social issues and risks associated with the proposed priority investments; review and comments on the appropriateness of the existing environmental (among others waste management), health and safety and labour provisions for the subcontractors (O&M contractor) and proposal of the necessary improvements; development of an E&S Management Plan for the refurbishment works to be included in the future tender documents and work contracts. This will need to cover appropriate disposal of the old mercury lamps, preventative management of health and safety risks to workers and public safety, and mitigation of road safety issues through appropriate temporary traffic and safety arrangements during the refurbishment works; preparation of an Environmental and Social Action Plan (ESAP) and a Stakeholder Engagement Plan (SEP) for the Project upon completion of ESDD, which shall then be agreed with the Client; preparation of a Non-Technical Summary (NTS) for the Project Corporate E&S Review and Assessment The Consultant will review the available documentation and assess the client s current environmental and social management systems, operations and assets/facilities against the applicable environmental and social requirements. Specifically, the due diligence will identify and assess the client s: corporate environmental and social management systems, policies, procedures and practices against the EBRD PRs; 6

7 capacity to manage all relevant social and environmental risks and impacts of its operations in accordance with the EBRD PRs; compliance with applicable environmental and social regulatory requirements; and operations and assets/facilities that could be associated with potentially significant environmental risks and impacts. It is required, that Consultant will complete the following tasks: Undertake an initial screening of potentially significant environmental and social risks and impacts associated with the Client s operations and assets/facilities based on a review of existing documentation and further identify sensitive areas and receptors that could be affected and impacted by the operations. Prepare relevant questionnaires to be completed by the Client s management. Following the initial screening and review of the questionnaires completed by the Client, the Consultant will meet with the Client s management and visit selected sites, as appropriate, to review the status of site activities, and controls implemented to address environmental, social and health and safety issues by the site contractors and the Client. Review and comment on the appropriateness of the existing environmental (among others waste management), health and safety and labour provisions for the subcontractors (O&M contractor) and proposed the necessary improvements. Develop an E&S Management Plan for the refurbishment works to be included in the future tender documents and work contracts. This will need to cover appropriate disposal of the old mercury lamps, preventative management of health and safety risks to workers and public safety, and mitigation of road safety issues through appropriate temporary traffic and safety arrangements during the refurbishment works ESDD reporting Upon completion of tasks under section the Consultant shall prepare the following E&S reports (to be submitted within 6 weeks) to summarise the assessment findings: Corporate Environmental and Social Assessment Report To report the overall findings of the assessment the Consultant will prepare an environmental and social assessment. A sample format is provided in Annex 2 for guidance. The Consultant will benchmark the Client s current management systems, operations and assets against the EBRD PRs, including: a summary highlighting any significant gaps between the Client s current management systems, operations and assets and the EBRD PRs; a compliance matrix, summarising and comparing the Client s current management systems, operations and assets against each of the EBRD PRs that are considered relevant, and stating the extent to which these are met; and, requirements for corrective actions and improvement measures that will need to be undertaken so as to meet the EBRD s PRs which will in turn be captured in the Environmental and Social Action Plan. The required format for the EBRD PR Benchmark Matrix (PR Compliance assessment) is provided in Annex 5. 7

8 Corporate Environmental and Social Action Plan (ESAP) The Consultant shall develop a comprehensive ESAP to address issues identified during ESDD. The ESAP will focus on those issues that are required to bring the operations into compliance with the EBRD s requirements and will be presented and sequenced by PRs. Actions identified must be numbered, clearly defined, indicate a time frame for completion (with specific reference to those actions that must be completed before financial close if appropriate) and a responsible party specified. Further, each item must contain a description of the factors that will be used to determine when the identified action is closed/completed. The Consultant will also inform the Client about any material budget implications of ESAP items (although this information may not be required in the public domain). The ESAP will be compact and, if needed, details will be included in sub-plans referenced in the main ESAP. The required format the ESAP is given in Annex 6 The ESAP will form part of the EBRD s agreement with the Client and therefore will be submitted as a standalone document. Corporate Stakeholder Engagement Plan (SEP) The Consultant shall prepare a draft SEP in compliance with the EBRD PR10. The scope and level of detail of the SEP will be scaled to fit the needs of the Client s current and proposed activities, and the objectives of EBRD PR10. Following review of the Client s operations, the Consultant will propose a format best suited for the specific needs. Guidance for the contents of an SEP is provided in Annex 3. Non-Technical Summary (NTS) The Consultant will prepare, in consultation with the Client, a concise, over-arching, standalone NTS. The NTS will be written in non-technical language and the Consultant will ensure that the NTS can be used to demonstrate compliance with the EBRD requirements, and provide confirmation that the documents are ready for public disclosure. An indicative list of issues for the NTS is given in Annex 4 4. IMPLEMENTATION ARRANGEMENTS AND DELIVERABLES 4.1 Implementation Arrangements The duration of the assignment is expected to be up to 3 months. The Consultant shall report to the EBRD s Project Operation Leader, Raushan Taigulova (taigulor@ebrd.com), based in Almaty, while also liaising with the Company and the City. On the E&S Due Diligence part of the assignment the key contacts based in London HQ is Polina Pimenova (pimenovp@ebrd.com). The Company will designate senior officials to be the primary contact persons with specific responsibility for assisting the Consultant and coordinating activities. 8

9 The Company will provide the Consultant with working space, necessary furniture and telephone connections. The Consultant will be responsible for all interpretation and translation services it may require. All available project information, reports and documents, including all of their records, plans, reports, designs and other documents as appropriate, will be made available for the Consultant by the Company and the Bank; but it will be the responsibility of the Consultant to translate these documents, if necessary. All documentation related to the works is and will remain the property of the Company after completion of the assignment. The Consultant shall not publish, use or dispose of this documentation without written consent of the Company and EBRD. 4.2 Reports & Deliverables All reports shall be prepared in hard and electronic copy versions in both Russian and English and shall be delivered to the Company and the EBRD. The Consultant shall produce in the course of the assignment the following reports: Inception Report: Within one week of commencement of the assignment, the Consultant shall present to the Company, the City and the Bank an inception report presenting the initial findings, with an emphasis on findings having an impact on the time schedule and factors affecting these Terms of Reference. The Company, the City and the Bank will provide comments on the inception report to the Consultant. Final Draft and Final Reports: Within 6 weeks of commencement of the assignment, the Consultant will submit to the Company, the City and the Bank a draft final report. This shall include as outlined above in Section 3: 3.1 Technical Assessment and Preparation of Technical Specifications, 3.2 Economic and Institutional Assessment, 3.3 Market Scoping for Private-Sector Interest, 3.4 Legal Due Diligence And Public Service Contract, 3.5 Procurement Plan 3.6 Environmental And Social Due Diligence. The Consultant shall distribute the draft final report in Russian and English to the Company, the City and the Bank for comments and shall organise a meeting with all parties within 2 weeks after distribution of the report. Upon receiving final comments from the Company, the City and the Bank after such meeting the Consultant should incorporate them into the Final Report, promptly finalise it and distribute as stipulated above. 5. CONSULTANT S PROFILE The Consultant should have significant expertise in SL sector with respect to the scope of work under TOR, including: Institutional expertise of SL sector internationally as well as in the former CIS countries; Technical knowledge of the SL sector internationally as well as in the region of CIS countries; Track record in implementing energy efficiency projects in the public sector in the EBRD regions (preferably in SL); International experience of energy performance contracting (EnPC), preferably in SL; International experience in modernizing SL systems with the use of luminaires; 9

10 Good knowledge and experience in IFIs procedures and rules on public procurement and disbursement policies, understanding of institutional and legal framework aspects in the SL sector, international and local (regional) financial management standards; A good knowledge and understanding of EBRD s environmental and social requirements and past experience of assistance in their successful implementation. Good knowledge of Kazakh legislation relevant to the assignment. The Consultant s team is expected to include the following experts: Project manager; Street lighting expert; Legal expert; Environmental and Social experts; Local experts. Ability to communicate with the Company in Russian language is considered essential. The Consultant s proposal should clearly articulate his or her competencies or - in case of a corporate consultant bidding competencies of the team members and the composition of the core team. The non-core team members of a corporate Consultant are to be included in the proposal including an expectation of how the work tasks will be split between the core and non-core team members. The Consultant can propose a number of non-core team members / subcontractors to fulfil specific tasks (similar to a selection from a short list) and these non-core team members /sub-contractors are not restricted from being part of more than one bid. 10

11 ANNEX 1: STANDARD MEASURING INDICATORS AND SUSTAINABLE RESOURCE INITIATIVE IMPACT INDICATORS Standard measuring indicators: Sector Street lighting Indicator Total population benefitting from improved street lighting. Annual reduction in tonnes of CO2 equivalent due to an increase in energy efficiency of the street lighting system. Data point to be collected Number of persons with improved street lighting services. Total energy consumption of the street lighting system (current and after project implementation); Number and types of lighting fixtures (current and after project implementation); Energy savings resulting from improved O&M (incl. dimming); CO 2 savings related to technology change, O&M, increased lifetime of the technology and any other savings related to the project and total CO 2 savings. Annual reduction Annual O&M costs for SL. in O&M costs. * measured two years after projected full loan disbursement Projected after implementat ion completion* Actual changes on implement ation completion SRI impact indicators: SRI impact Unit Data point to be collected Projected indicator after implementat ion completion* Primary GJ/yr Project energy use compared to baseline 1 energy saved energy use. This equals the use of electricity, multiplied by a loss factor to take into account country average Actual changes on implement ation completion 1 The baseline is defined as the expected conditions without the project two years after full loan disbursement. The baseline is compared to the conditions projected with implemented project two years after full loan disbursement. 11

12 CO2 emissions reduced ton CO2e/ yr generation efficiencies and electricity grid losses 2. Project CO2 emissions compared to baseline CO2 emissions. These emissions relate to the indirect emissions as a result of the use of electricity 3. 2 For example, with an average electricity generation efficiency of 40% and grid losses of 7%, the primary energy use (MWh) is 2.7 x the direct electricity use (MWh). 3 The CO2 emissions as a result of the use of electricity are determined by multiplying the use of electricity (MWh) with the country specific grid emission factor (ton CO2/ MWh) in line with the joint MDB list of grid emission factors. 12

13 ANNEX 2: OUTLINE FORMAT FOR THE CORPORATE ESDD REPORT The following is an outline format for the Corporate ESDD Report. The Consultant is expected to use its professional judgement to determine what aspects (either listed below or additional) are relevant to the Assignment. Executive Summary 1 Nature of the Project to be Supported Description and context of the proposed Project 2 The Existing Company 2.1 Operations, Facilities and Assets Physical description Location Site history Current operations Organisation of environmental and social management 3 Environmental Performance 4 Occupational Health and Safety Performance 5 Labour Practices and Human Resources Management 5.1. Contractor management practices 6 Social Performance and Management (Outside of the company s premises) 6.1 Local Communities: Impacts and Benefits 6.2 Community Health, Safety and Security 6.3 External Stakeholder Engagement 6.4 Impacts on Vulnerable Groups 6.5 Involuntary Resettlement and Economic Displacement 6.6 Conclusions and Recommendations: External Social Performance 7 Conclusions and Recommendations 7.1 Summary of Regulatory Compliance 7.2 Summary of Key Impacts, Risks and Liabilities 7.3 Corrective and Mitigation Measures Appendices (to include) Details of Persons Consulted Photo/video/CD log Copies of Permits and other documentation 13

14 ANNEX 3: PLAN GUIDANCE FOR CORPORATE STAKEHOLDER ENGAGEMENT The following is an indicative list of issues for possible inclusion in a Stakeholder Engagement Plan. The Consultant is expected to use its professional judgement to determine what issues (either listed below or additional) are relevant to the Assignment. A Stakeholder Engagement Plan will need to: Briefly identify the Client s location(s) and areas subject to impact (e.g., list of communities) Record what the Client is legally required to do regarding disclosure and consultation Identify all stakeholders, including stakeholder maps (if relevant) Report on any previous consultation and disclosure activities Define which documents will be released, including a schedule, and in what language Define where documents will be available (physical and online addresses) Define how people will be notified of the document availability State the beginning and end dates of the consultation Provide a table or list of meetings, activities or opportunities for comment. If locations/dates are not yet known, state how people will be informed of the dates State who/where should comments be sent to, what will happen to them and how people will be advised of the outcomes Define how grievances will be handled (including a specific public grievance process) Define the monitoring and reporting activities for the stakeholder engagement process Define the responsibilities for delivering the stakeholder engagement process A typical SEP should not exceed 20 pages in length, excluding annexes. Please also see guidance note: 14

15 ANNEX 4: LIST OF INDICATIVE ISSUES FOR A NON-TECHNICAL SUMMARY The following is a list of indicative issues for possible inclusion in a Non-Technical Summary. The Consultant is expected to use its professional judgement to determine what issues (either listed below or additional) are relevant to the Project. Non-Technical Executive Summary 1 Project Description A concise and comprehensive description of the Project Scheme map, where available 2 Background Rationale of the Project Legal aspects and compliance with relevant environmental and social laws Current environmental and social situation and considerations History of the Project development and planning; including an outline of the main alternatives that were studied, their environmental and social impacts, and the reasons for making the final selection 3 Process ESIA process carried out and integration with design A statement of the Project s current state of compliance with national regulatory requirements and relevant EU requirements Public consultations and disclosure and dealing with objections 4 Summary of Environmental Benefits, Potential Adverse Impacts, Mitigation and Management Measures Air quality Associated infrastructure Biodiversity and nature conservation Consistency with policy, law and other plans Cumulative impacts Induced (indirectly consequential) impacts Land use planning and changes Landscape and visual impacts Raw material sourcing and transportation, including borrow pits Road safety Traffic, noise and vibration Waste management Water resources 5 Summary of Social Benefits Potential Adverse Impacts, Mitigation and Management Measures Community impacts Contractor management, including the siting and management of worker camps Cultural heritage Disruption and public health and safety during construction Impacts on businesses and employment Impacts to existing infrastructure and public services 15

16 Labour issues and standards Land acquisition and resettlement (cross reference any resettlement report that is being developed) Local traffic and access impacts Occupational and public health and safety issues Socio-economic impacts; including vulnerable groups (taking into account gender specificities and needs) 7 Communications Contact details Process for addressing any issues arising Link to Stakeholder Engagement Plan (or similar) 16

17 ANNEX 5: ENVIRONMENTAL AND SOCIAL APPRAISAL: COMPLIANCE SUMMARY TABLE Introduction The Compliance Summary provides a systematic review of corporate compliance with the EBRD Environmental and Social Policy, as defined through the applicable Performance Requirements (PRs). Scope of compliance is all PRs applicable to non-fi projects. The review is intended to provide a baseline against which to establish the capacity of Client s to meet the EBRD PRs. Between 2 and 10 indicators are identified for each of the applicable PRs: 1, 2, 3, 4, 5, 6, 7, 8 and 10. Guidance For all PRs (Indicators with whole number references) provide a summary of overall compliance with the PR. Justification for any derogation from a PR should be summarised and supporting documents referenced. For each indicator within a PR, please complete the 3 steps below: 1. Decide whether the indicator is applicable. For Category A and B projects the starting point is that all indicators are applicable unless the project has no significant aspects relevant to the indicator (i.e. no risks), in which case the indicator should be scored "NA" and a brief summary of the reason given. For Category C projects the starting point is all indicators are NA unless the project has a significant aspect relevant to the indicator (i.e. there is a material risk). 2. Decide whether an opinion is possible. If not (for example if the indicator will apply, but it is too early in the project) score as "NOP" and provide a brief summary of why. Where lack of opinion represents a material omission to the review refer to where this is addressed in the report and summarise any recommendations. 3. Score the indicator as follows and provide brief justification. EC FC PC MN Exceeding Compliance: The Client has gone beyond the expectations of EBRD s PR requirements. EBRD should be able to use projects rated EC as a role model for positive Environmental and Social effects. Fully Compliant: The Client is fully in compliance with EBRD s requirements, and EU and local environmental, health and safety policies and guidelines. Partial Compliance: The Client is not in full compliance with EBRD s requirements, but has systems, processes or mitigation measure in place which are working towards addressing the deficiencies. Material Non-compliance: The Client is not in material compliance with EBRD s requirements, and the systems, processes or mitigation measures in 17

18 place are not working towards addressing the deficiencies. 4. Comments/Issues: Provide a brief commentary on the relevance of this requirement for the project and an explanation of the chosen score. 5. Actions Required: Where applicable, briefly describe any actions required by the client to achieve full compliance with each requirement. Where a relevant action is included in the ESAP for this project, please provide a reference to the ESAP. 6. PR Summary: Provide an overall summary against the PR, using the above compliance definitions with supporting commentary. In some cases it may be sufficient to address a PR at summary level only, depending on Stage 1 above. Note: The Material Non-compliance score (at both Indicator and PR level) has significant implications for loan approval and requires particular care. In judging whether the measures sufficiently address deficiencies the consultant should consider in a structured way both the level of residual (post-approval) risk and the level of confidence that the Client can successfully bring the issue into compliance with the Policy through the ESAP. The table below illustrates the approach to be taken. High PC MN MN Risk Medium PC PC MN Low FC PC PC High Medium Low Confidence Performance Requirement Score Comments/ Issues Actions Required 1 Assessment and Management of Environmental and Social Impacts and Issues Summary: 1.1 Environmental and Social Assessment 1.2 Environmental and Social Management Systems 1.3 Environmental and Social Policy Environmental and Social Management Plan 4 Where the project represents a substantial extension to the client activities, confirm that Policy and supporting management systems and plans are appropriate for the new activities. 18

19 Performance Requirement 1.5 Organisational Capacity and Commitment 1.6 Supply Chain Management 1.7 Project Monitoring and Reporting 5 Score Comments/ Issues Actions Required 2 Labour and Working Conditions Summary: 2.1 Human Resource Policies and Working Relationships 2.2 Child and Forced Labour 2.3 Non-Discrimination and Equal Opportunity 2.4 Workers Organizations 2.5 Wages, benefits, and conditions of work and accommodation 2.6 Retrenchment Grievance Mechanism 2.8 Non-Employee Workers 2.9 Supply Chain 2.10 Security Personnel Requirements Resource Efficiency and Pollution Prevention and Control NB. Appraisal should carefully consider (and state) what regulations or standards 3 have been applied to compliance assessment (eg EU, National, Sector Best Practice). Assessments should address consideration of the performance of alternative techniques. Summary: 3.1 Resource Efficiency 3.2 Pollution Prevention and Control - Air emissions 3.3 Pollution Prevention and Control - Waste waters 3.4 Greenhouse Gases Water 3.6 Wastes 3.7 Hazardous Substances and Materials 5 At appraisal stage there will be limited information. Compliance assessment should address specific plans for monitoring and reporting (against for example ESAP requirements) and also consider whether there is evidence of weak monitoring/reporting by client on other relevant projects - which may reduce confidence in future performance. 6 Will not be applicable to many projects at appraisal stage. However evidence, within the last 3 years of client approach to retrenchment which is not compatible with the Policy should be taken into consideration. 7 Particular attention should be given to client demonstration of consideration of alternatives. Clients expected annually to produce more than 25,000 tonnes of CO 2 equivalent should provide an emissions inventory and evidence of annual reporting. 19

20 Performance Requirement Score Comments/ Issues Actions Required 4 Health and Safety Summary: 4.1 Occupational Health and Safety 4.2 Community Health and Safety 4.3 Infrastructure, Building, and Equipment Design and Safety 4.4 Hazardous Materials Safety 4.5 Product and Services Safety 4.6 Traffic and Road Safety 4.7 Natural Hazards 4.8 Exposure to Disease 4.9 Emergency Preparedness and Response 5 Land Acquisition, Involuntary Resettlement and Economic Displacement Summary: 5.1 Avoid or minimise displacement 5.2 Consultation 5.3 Compensation for displaced persons 5.4 Grievance mechanism 5.5 RAP/LRP documentation 5.6 RAP/LRP implementation 5.7 Monitoring 6 Biodiversity and Living Natural Resources Summary: 6.1 Assessment of Biodiversity and Living Natural Resources 6.2 Conservation of Biodiversity 6.3 Sustainable Management of Living Natural Resources 7 Indigenous People Summary: 7.1 Indigenous People Assessment 7.2 Adverse Effects Avoidance and Indigenous Peoples Development Plan 7.3 Information Disclosure, Meaningful Consultation and Informed Participation 7.4 Grievance Mechanism and Prevention of Ethnically Based Discrimination 7.5 Compensation and Benefit-Sharing 7.6 Impacts/Relocation on Traditional or Customary Lands and Cultural Heritage 20

21 Performance Requirement Score Comments/ Issues Actions Required 8 Cultural Heritage Summary: 8.1 Assessment and Management of Impacts on Cultural Heritage 8.2 Consultation with affected communities and other stakeholders 8.3 Project use of Cultural Heritage 10 Information Disclosure and Stakeholder Engagement Summary: 10.1 Stakeholder Engagement Plan 10.2 Operational Grievance Mechanism Overall Compliance National Environmental, Social, Health and Safety Requirements EU Environmental, Social, Health and Safety Requirements 21

22 ANNEX 6. GUIDELINE FOR REPORTING ENVIRONMENTAL AND SOCIAL ACTION PLAN No. PR1 Action Environmental & Social Risks (Liability/Benefit s) Requirement (Legislative, EBRD PR, Best Practice) Resources, Investment Needs, Responsibility Assessment and Management of Environmental and Social Impacts and Issues 1.1 Develop and implement an EMS Optimisation of environmental management though a formalised system. Provide resources for training and monitoring of emissions EBRD PR1 Voluntary best practice and Own resources, external consultants Cost Assign responsibilities Timetable Target and Evaluation Criteria for Successful Implementation 20xx Develop and implement an EMS Attain ISO or equivalent certification Annual EHS Report to the Bank Status PR2 2.1 PR3 3.1 PR4 4.1 PR5 5.1 Labour and Working Conditions Resource Efficiency and Pollution Prevention and Control Health and Safety Land Acquisition, Involuntary Resettlement and Economic Displacement 1

23 No. Action Environmental & Social Risks (Liability/Benefit s) Requirement (Legislative, EBRD PR, Best Practice) Resources, Investment Needs, Responsibility Timetable Target and Evaluation Criteria for Successful Implementation Status PR6 Biodiversity and Living Natural Resources 6.1 PR7 Indigenous People 7.1 PR8 Cultural Heritage 8.1 PR10 Information Disclosure and Stakeholder Engagement