INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE
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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized I. Basic Information Date prepared/updated: 05/18/2006 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE Report No.: AC Basic Project Data Country: Africa Project ID: P Project Name: WAPP APL 2 - OMVS Felou Hydroelectric Project Task Team Leader: Amarquaye Armar Estimated Appraisal Date: April 17, 2006 Estimated Board Date: June 27, 2006 Managing Unit: AFTEG Lending Instrument: Adaptable Program Loan Sector: Power (50%);Renewable energy (50%) Theme: Regional integration (P);Water resource management (S) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT EC: EUROPEAN INVESTMENT BANK Environmental Category: A - Full Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) [ ] No [] 2. Project Objectives The goal of the West African Power Pool (WAPP) is to establish a well-functioning, cooperative, power pooling mechanism for West Africa, as a means to increase access of the citizens of the Economic Coummunity of West African States (ECOWAS) to stable and reliable electricity at affordable costs. The developmental objectives of WAPP APL 2 (Organisation Pour La Mise En Valeur Du Fleuve Senegal (OMVS) Felou Hydroelectric Project (HEP)) Project are to: (a) augment the supply of low cost hydroelectricity from the OMVS Power System to the national power utilities of Mali (EDM), Mauritania (SOMELEC) and Senegal (SENELEC) as a means to alleviate widening power supply deficits that have resulted in chronic load shedding in WAPP "Zone B" OMVS countries (Mali, Mauritania, Senegal); and (b) further develop the OMVS power system into the nucleus of the future hydro-thermal power pooling mechanism - the proposed WAPP Cooperation Agreement - for WAPP "Zone B" countries. This developmental objective is to be achieved, inter alia, by: (a) implementing the proposed OMVS Felou HEP through a public-private partnership based on a Design- Build-Operate-Transfer (DBOT) approach; and (b) upgrading the functional and realtime operational capabilities of the Permanent Technical Committee that is responsible for the safe, reliable and efficient operation of the OMVS Power System.
2 3. Project Description The WAPP is a regional initiative, spearheaded by national power utilities of ECOWAS Member States, which directly contributes to the broader ECOWAS agenda to establish an open, unified, regional economic space in West Africa. On June 30, 2005, the Bank s Executive Board of Directors endorsed the application of the adjustable program lending (APL) instrument, within the framework of the World Bank s Regional Integration Assistance Strategy (RIAS) for West Africa, as the vehicle for providing IDA credit support to the WAPP initiative. By so doing, the Bank has earmarked substantial IDA resources to put in place a multi-year programmatic framework to help close the financing gap and thereby ensure timely implementation of priority WAPP investments and technical assistance activities of the Revised ECOWAS Master Plan. The APL instrument would enable IDA credit support to be provided in a flexible manner - when borrowers have satisfied the policy triggers (country commitments under the Ecowas Energy Protocol (EEP)) and when individual WAPP priority investments are ready to receive IDA credit support. All ECOWAS Member States might not actually be granted IDA credits under the WAPP APL program. However, ECOWAS Member States would know up-front that they can rely on the Bank to support them in achieving the developmental goals of the WAPP if they meet specific eligibility criteria and if they need IDA credit support. Component 1: DBOT Contract. The Societe de Gestion de l Energie de Manantali (SOGEM) or its successor asset holding entity - the Agence de Gestion du Patrimoine de l OMVS (AGP-OMVS), will outsource the entire "design-build-operate-transfer" implementation cycle for the OMVS Felou HEP, including pilot operation of the Felou HEP to demonstrate performance for up to two hydrological seasons, to a private contractor ("the DBOT Contractor") under a single responsibility, performance-based contract. The private contractor will be selected through an international competitive bidding process, consistent with Bank Guidelines. Component 2: A Two-Stage "Project Cycle Management" Contract. The OMVS will retain the services of an experienced engineering consulting firm to provide comprehensive project cycle management support through a two-stage sequential contracting arrangement. For the Stage 1 ("Transaction Adviser") Contract, currently underway with funding from PPF Q475-0-SE, the consulting firm will provide transaction advice and support to enable the OMVS to: (a) perform detailed planning and scheduling of project implementation arrangements, including pre-qualification of prospective bidders, (b) prepare and issue bidding documents for the selection of a DBOT contractor, and (c) conduct the two-stage bidding process, evaluate bids and make recommendation for the award of the DBOT contract. The expected duration of the Stage 1 Contract is 9-12 months. After the award of the DBOT contract is made, the Stage 2 ("Owners Engineer") Contract would begin. Subject to satisfactory performance during the Stage 1 Contract, the same consulting firm will be retained to assist the OMVS and SOGEM/ AGP-OMVS) to oversee the day-to-day performance of the DBOT contractor over the entire "design-build-operate-transfer" cycle, including the critical hand-over of a fully operational OMVS Felou HEP to SOGEM/AGP-OMVS.
3 Component 3: Capacity Building Support (Permanent Technical Committee - OMVS Power System). This component will provide technical assistance, equipment and capacity building support to upgrade the functional capabilities of the Permanent Technical Committee (PTC) of the OMVS Power System. The Permanent Technical Committee of the OMVS Power System comprises representatives of SOGEM (the OMVS asset holder), ESKOM Energie Manantali (EEM) (the private concessionaire/system operator), and the national power utilities of Mali (EDM), Mauritania (SOMELEC) and Senegal (SENELEC). Under this component, SOGEM/AGP-OMVS will acquire and transfer "use and control" through the PTC to the national transmission system operators in Mali (EDM), Mauritania (SOMELEC) and Senegal (SENELEC) of (a) SCADA/EMS and associated communication equipment and (b) software for hydro-thermal optimization. Together with joint training and associated capacity building activities to be organized jointly with the WAPP Organization, this capacity building component is intended to help improve the real-time operational planning and coordination with the OMVS Power System Operator (presently, ESKOM Energie Manantali (EEM) is the private concession holder). Overall, this component would enable the PTC to execute the "WAPP Action Plan" which would lead towards the establishment of a WAPP Cooperation Agreement among WAPP "Zone B" OMVS countries. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The investment component of WAPP APL 2 (Phase 2) is located entirely in northwestern Mali and will be implemented by the DBOT Contractor under the supervision of the OMVS High Commission and the designated OMVS-sponsored power asset holding entity - the proposed AGP-OMVS. The site of Felou is located about 200 km downstream of the hydropower dam of Manantali on the river Senegal and about 15 km from the town of Kayes (population at 86,500 in 2003). No physical displacement will occur. The impacts are restricted to the acquisition of 0.35 ha of vegetable gardens and of 0.9 ha of orchards in the context of civil works 5. Environmental and Social Safeguards Specialists Mr Robert A. Robelus (AFTS1) Ms Yvette Laure Djachechi (AFTS3)
4 6. Safeguard Policies Triggered No Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Cultural Property (OPN 11.03) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: There are no potential large scale, significant and/or irreversible impacts expected from the Project. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: There are no potential adverse indirect and/or long-term impacts anticipated as a result of anticipated future activities. The main social development issue in the project area (Kayes/ Bafoulabe) pertains to the negative impacts on fishing activities and acquisition of 1.25 ha of land planted with orchards and vegetable garden for project facilities. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Not applicable. 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. An Environmental Impact Assessment and Resettlement Action Plan (RAP) were prepared and disclosed prior to project appraisal. The RAP determined the adequate level of compensation for the loss of assets resulting from the acquisition of 1.25 ha of land. The Project will also implement additional social enhancement measures to benefit neighboring villages (Lontou, Bengassi) in the Project zone of influence. Detailed information on these measures were included in the Resettlement Action Plan. Activities planned under the Senegal River Basin Multipurpose Water Resource Development (MWRDP) project, which is being developed in parallel, are directed to improving fishing techniques and equipment of fishermen, which in turn will benefit the affected fishermen under the WAPP APL 2 Project.
5 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Main stakeholders are the local communities close to the site of Felou, and the fishermen and farmers affected by the acquisition of 1.25 ha of land. Affected persons and communities were consulted in the process of EIA and RAP preparation. The implementation of the RAP will follow the participatory process framework established by OMVS for the implementation of the MWRDP. Completed Environmental Impact Assessment and RAP, which were the required safeguard reporting instruments for this Project, were disclosed to the infoshop as indicated in table B below. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Date of receipt by the Bank 03/02/2006 Date of "in-country" disclosure 03/02/2006 Date of submission to InfoShop 03/02/2006 For category A projects, date of distributing the Executive 05/17/2006 Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Date of receipt by the Bank 02/23/2006 Date of "in-country" disclosure 03/17/2006 Date of submission to InfoShop 04/14/2006 * If the project triggers the Pest Management and/or Cultural Property, 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: Not applicable. C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP Environment Assessment Does the project require a stand-alone EA (including EMP) report? If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? OP/BP Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? OP/BP Safety of Dams
6 Have dam safety plans been prepared? 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? 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? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank s Infoshop? Have relevant documents been disclosed in-country in a public 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 responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? 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? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Amarquaye Armar 05/18/2006 Environmental Specialist: Mr Robert A. Robelus 05/18/2006 Social Development Specialist Ms Yvette Laure Djachechi 05/18/2006 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Warren Waters 05/18/2006 Comments: Sector Manager: Mr Subramaniam V. Iyer 05/18/2006 Comments:
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