The World Bank Washington, D.C USA. REVISED DRAFT OPERATIONAL POLICYBANK PROCEDURE 4.11 PHYSICAL CULTURAL RESOURCES

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Office of the President The World Bank Washington, D.C USA. March 24,26 MEMORANDUM OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS REVISED DRAFT OPERATIONAL POLICYBANK PROCEDURE 4.11 PHYSICAL CULTURAL RESOURCES ISSUES AND PROPOSALS This paper proposes a conversion of the 1986 World Bank Operational Policy Note (OPN) 11.3, Management of Cultural Property in Bank-Financed Projects to Operational Policy (OP)/Bank Procedure (BP) 4.1 1, Physical Cultural Resources (PCR). OP/BP 4.11 clarifies and updates existing procedures for dealing with physical cultural resources while adhering to the basic principles of OPN Specifically, the OP/BP accomplishes this by: providing a more complete definition of PCR; ensuring PCR is an integral part of the environmental assessment (EA) process; elaborating procedures and processes; incorporating provisions to handle chance finds ; modifying disclosure requirements to protect sources of information while remaining consistent with the World Bank Policy on Disclosure of Information; and incorporating provisions for borrower capacity building. 2. This OP/BP has been developed over the last few years in line with decisions by Bank Management to update the environmental and social safeguards policies. It follows the entry into force of OP/BP 4., Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects in March 25, and other complementary OPs, including OP/BP 4.1, Indigenous Peoples (effective July 25), and OPBP 8.6, Development Policy Lending (effective September 24). 3. CODE discussed the policy content of the first draft of OP in February 21. The draft OPBP was subsequently revised on the basis of external consultations that were conducted from April 21 to March 22 in ten client countries (Brazil, Cambodia, Ethiopia, Georgia, Ghana, India, Mexico, Tunisia, Turkey and Yemen). The draft policy was also posted on the Bank s external website from August 28, 21 to March 8, 22. There were a limited number of comments received, which were largely technical in nature. The proposed OP/BP incorporates comments from both external and internal reviews.

2 2 4. Management has also incorporated guidance from IEG (formerly known as OED) - in particular, that the policy cover projects in all EA categories - drawing not only from IEG s comments made in CODE on the draft OP/BP, but also on IEG s report Cultural Properties in Policy and Practice: A Review of World Bank Experience that was discussed in CODE in November The PCR policy and OP/BP were discussed in CODE on January 25, 26. The Committee supported going forward with the approval of the policy on an absence of objection basis, taking into account issues raised by members. These included: consistency with national and international law; use o f country systems, where appropriate; cost implications for the PCR policy; application to emergency recovery projects; and chance finds under Category C projects. The OP/BP has been revised to take into account the issues raised by Committee members. IEG observed that its concerns about project classification in relation to the Bank s safeguards policies and about chance finds had been satisfactorily addressed. 6. The proposed OP/BP, along with the supporting Handbook, PCR country profiles and training modules, will provide Bank staff and client countries with guidance and information for implementing the cultural resources component of EA under OP 4.1, Environmental Assessment. In requiring attention to, and compliance with client country legislation, regulations and practices with respect to PCR, the OP/BP reinforces OP 4., Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects. 7. The proposed OP/BP includes the following clarifications and updates: A more specific definition of PCR and of the policy s coverage and a clearer statement on the objectives of including PCR in projects; that is, the Bank assists countries to avoid or mitigate adverse impacts on physical cultural resources from development projects that it finances ; The requirement to develop a PCR management plan as an integral part of the EA process; this plan should be consistent with the country s overall policy framework and national legislation and take into account institutional capabilities in regard to PCR; Mandatory reporting to the Bank of relevant requirements in the national legislation regarding chance finds ; The development of appropriate review and mitigating measures for PCR that may be affected by Bank-financed projects, provided that this would not conflict with the borrower s obligations under international environmental treaties and agreements; A requirement for public consultations, as part of the EA process, to document the presence and significance of PCR, assess potential impacts, and explore avoidance and mitigation measures; and

3 3 A requirement that the borrower consult the Bank and relevant experts to determine if disclosure of PCR would jeopardize the safety or integrity of the physical cultural resources involved and/or would endanger the source of information about the physical cultural resources. In such cases, the Bank may agree that sensitive information relating to these particular aspects may be omitted from the EA report. 8. Exceptions to the application of OP could also be made in the case of emergency recovery projects, if necessary, to avoid jeopardizing effective and timely achievement of project objectives. However, the Bank requires that any necessary corrective measures be built into either the emergency recovery project or a future lending operation. Where there is a need to enhance capacity to manage affected PCR, the Bank will review opportunities to strengthen such capacity. 9. The proposed OP/BP is consistent with OP/BP 4., Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank- Supported Projects. The text of Table A1 (Section G) of OP/BP 4. will be revised to make it consistent with the new OP/BP 4.11, once approved. Recommendation 1. I recommend that the Executive Directors approve the policy content of the proposed Operational Policy, OP 4.1 1, Physical Cultural Resources, as set out in paragraphs 7 and 8 above and explained in paragraphs 13 to 17 of the accompanying paper entitled Revised Draft Operational Policy and Bank Procedure 4.1 1, Physical Cultural Resources: Issues and Proposals If the Executive Directors approve, Management will issue OP/BP to replace the existing Operational Policy Note 1 1.3, Management of Cultural Property in Bank-Financed Projects. As noted above, Table A1 (Section G) of OP/BP 4. will be accordingly amended. The new OP/BP will apply to all projects with a concept review on or after April 15, 26. The new OP/BP will be made publicly available in accordance with the World Bank Policy on Disclosure of Information. Paul Wolfowitz President By: Graeme Wheeler Acting Managing Director

4 REVISED DRAFT OPERATIONAL POLICY/BANK PROCEDURE 4.11 PHYSICAL CULTURAL RESOURCES ISSUES AND PROPOSALS Background 1. At the initiative of Management, and following guidance from the Executive Directors, the Bank is updating its policy on safeguarding Physical Cultural Resources (PCR) that may be affected by projects which it finances. This policy, originally issued in 1986 as Operational Policy Note (OPN) 11.3, Management of Cultural Property in Bank-Jinanced Projects (Annex A) is presented for information as draft Operational Policy (OP) and Bank Procedure (BP) 4.11, Physical Cultural Resources (see Annex B). The OP/BP clarifies and provides more detail on existing procedures for dealing with physical cultural resources, including: providing a more complete definition of PCR; ensuring PCR is an integral part of the environmental assessment (EA) process; elaborating procedures and processes; incorporating provisions to handle chance finds ; modifying disclosure requirements for consistency with the World Bank Policy on Disclosure of Information while protecting sources of information; and incorporating provisions for borrower capacity building. The policy content of the proposed new OPBP is being submitted for the Executive Directors consideration OPN 11.3 commits the Bank to considering the protection of, as well as safeguarding, cultural property in Bank-financed projects. OP/BP 4. 1, Evivironmental Assessment, commits the Bank and client countries to include cultural heritage as a component of EA, in accordance with national legislation in most countries and established global good practice for environmental impact assessment (EIA). While certain aspects of OPBP 4.1 and OPN 11.3 are complementary, OPN 11.3 does not specifically cite OP/BP 4.1, nor does it address EA practice in general. Conversely, OP/BP 4.1 mentions cultural heritage as a component of EA, but provides no guidance on how to incorporate it into the EA process. OP/BP 4.1 1, by explicitly referencing the EA, will improve the quality of the EA process and ensure effective implementation of the Bank s safeguard policies with respect to cultural heritage. 3. In February 21, a draft of the proposed OP/BP 4.11 was presented to the Committee on Development Effectiveness (CODE). Management explained to CODE that the proposed new OP/BP clarified the Bank s policy on safeguarding PCR by providing a sharper delineation of the roles and responsibilities o f the Bank and borrowers and by providing better guidance to staff, especially with The work on policy conversion has been undertaken by the Quality Assurance and Compliance Unit (QACU) within Environmentally and Socially Sustainable Development (ESSD).

5 2 regard to due diligence. Management had also clarified the linkages and reliance of OP/BP with OP/BP IEG (formerly known as OED) commented that the draft addressed earlier concerns about roles and responsibilities and linkage to the EA process. IEG, however, noted that the issue of coverage of chance finds under Category C projects remained to be addressed. It also noted that it would be necessary to address performance issues related to EAs, as the Bank s reliance on EAs to implement safeguard policies increased. Following the discussion, CODE recommended external consultations. The Consultation Process 5. Preparation o f the new OP/BP had commenced in 1999, as part of a long-term commitment by Management to update the Bank s safeguards policies. Internal consultations were reported to the Operations Policy Committee (OPC) in December 2. External consultations were conducted from April 21 to March 22 in ten client countries representing all of the Bank s six regions. During this period, additional consultations took place at three professional conferences. Electronic consultations involved posting the draft policy in eight languages, together with contextual information, on the Bank s website from August 28, 21 to March 8, 22. Messages seeking comments were sent to ten international organizations with interest and/or expertise in physical cultural resources, drawing their attention to the website. There were a limited number of comments, which were largely technical in nature. 6. On the basis of external consultations, and in collaboration with the Bank s Legal Department (LEG), a revised draft of OP/BP 4.11 was produced. During the period from June through August 22, this draft was discussed with Management and staff responsible for environmentally and socially sustainable development in each of the Bank s six regions. The final draft of OP/BP 4.11 incorporates comments and concerns from this internal review. Submission to the Board of the revised OP/BP was delayed pending Board consideration of complementary policy revisions and updates, such as those incorporated into OP/BP 8.6, Development Policy Lending (effective September 24), OP/BP 4., Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects (effective March 25), and OP/BP 4.1, Indigenous Peoptes (effective July 25). Overview of the Consultations 7. Respondents were very positive about the draft OP/BP 4.1 1, regardless of their sectoral or institutional affiliations. Support came not only from environmental agencies, cultural authorities and concerned non-governmental organizations, but also other public authorities, such as ministries of planning, economic development, and infrastructure. The latter respondents were conscious of the

6 3 socio-economic potential of well-managed physical cultural resources and aware of the political problems that could arise as a result o f damage to such resources. 8. Infrastructure authorities stressed the need to identify potentially affected physical cultural resources, and to plan for their management, at an early stage in the project planning cycle, within the national environmental impact assessment (EIA) process in each country. Afterthought studies o f these resources, such as archaeological surveys requested late in the EIA stage could be expected to meet opposition from even the most supportive of project proponents. By ensuring the integration of physical cultural resources issues into the Terms of Reference for EIAs, OPBP 4.11 will help to avoid last-minute studies and delays in project implementation. 9. The consultations also revealed that safeguarding physical cultural resources is already included in most national EM legislation, regulations and guidelines.2 Of the ten countries consulted, only one has EIA guidelines that do not explicitly include physical cultural resources. Policy Implementation 1. Throughout the external consultations, respondents rapidly moved from issues of principle, with which they were largely in agreement, to focus on issues of implementation. By the conclusion of the consultations, it was clear that the key challenge regarding OPN 11.3 has been in the implementation of the policy, rather than the policy itself. The Bank consultation team concluded that the inclusion of explicit implementation requirements and procedures in OP/BP would be expected to lead to a significant improvement in implementation. Two tools are being developed by QACU to aid project Task Teams, other relevant Bank staff, borrowing countries, and EM consultants in complying with OPBP 4.11; these comprise: a Handbook and a Physical Cultural Resources Country Profile for each borrower country. 11. Despite the coverage o f physical cultural resources in national EIA regulations, there has been little collaboration between environmental and cultural institutions in most borrowing countries. Furthermore, although the Bank has had OPN 11.3 in place since 1986, several ministries of culture in the countries consulted were not aware that either their national EIA regulations or the Bank s EA policy require EIA reports to cover physical cultural resources. Some ministries of culture, environment and planning, economic development, and/or infrastructure were not certain of the specific procedures for implementing their own national regulations on chance finds during development projects. Thus, they supported the procedures incorporated in OP/BP ETA practitioners were generally aware of the requirement for EIA reports to cover physical cultural resources - often termed cultural heritage -but typically, * In addition, more than 1.8 States are Parties to the UNESCO World Heritage Convention.

7 4 they sometimes reported limited emphasis on this requirement by the Bank, or by national environmental authorities. Consequently, their EIA reports often do not adequately cover the subject, though some countries reported effective compliance and/or established government procedures. Integration of PCR issues into the EA process will address this problem. The Final Draft of OP/BP The proposed OP/BP, along with the supporting Handbook, PCR country profiles and training modules, will provide Bank staff and client countries with guidance and information for implementing the cultural component of EA under OP/BP 4.1. OP/BP 4.11 also provides for the management of chance finds in accordance with client country legislation, regulations, and practices. In requiring attention to, and compliance with, client country legislation, regulations and practices with respect to physical cultural resources, the OP/BP reinforces OP 4., Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects. 14. The proposed clarifications and updates to the Bank s policy on safeguarding PCR cover almost all aspects of OPN 11.33, and include the following key elements: A more specific definition of PCR and of the policy s coverage and a clearer statement on the objectives of including PCR in projects; that is, the Bank assists countries to avoid or mitigate adverse impacts on physical cultural resources from development projects that it finances ; The requirement to develop a PCR management plan as an integral part of the EA process; this plan should be consistent with the country s overall policy framework and national legislation and take into account institutional capabilities in regard to PCR; Mandatory reporting to the Bank of relevant requirements in the national legislation regarding chance finds ; The development of appropriate review and mitigating measures for PCR that may be affected by Bank-financed projects, provided that this would not conflict with the borrower s obligations under international environmental treaties and agreements; A requirement for public consultations, as part of the EA process, to document the presence and significance of PCR, assess potential impacts, and explore avoidance and mitigation measures; and A requirement that the borrower consult the Bank and relevant experts to determine if disclosure of PCR would jeopardize the safety or integrity of the physical cultural resources involved and/or would endanger the source of information about the physical cultural resources. In such cases, the Bank may The applicability of policy in regard to Bank financing remains the same between OPN 11.3 and OP/BP 4.11, i.e., the policy applies to any project in which the Bank is involved irrespective of whether or not the Bank is itself financing the part of the project that may affect cultural property.

8 5 agree that sensitive information relating to these particular aspects may be omitted from the EA report. 15. Exceptions to the application of OP 4.11 could be made in the case of emergency recovery projects, if necessary, to avoid jeopardizing effective and timely achievement of project objectives. However, the Bank requires that any necessary corrective measures be built into either the emergency recovery project or a future lending operation. Where there is a need to enhance capacity to manage affected PCR, the Bank will review opportunities to strengthen such capacity. Cost implications of the application of the proposed OP/BP are expected to be minimal, as it will be an incremental adjustment to the EA process, but there are substantial potential benefits in terms of strengthening the EA. 16. The final draft of the proposed Operational Policy and Bank Procedure provided in Annex B is substantially unchanged from the version discussed by CODE in February 21 for use in external consultations, though the draft incorporates a suggestion from IEG regarding ensuring policy coverage for projects in all EA categories (A, B, C and FI). 17. The PCR policy and OP/BP were discussed in CODE on January 25, 26. The Committee supported going forward with distributing the revised OP/BP to the Board and approving on an absence of objection basis the revised policy, taking into account issues raised by members. These included: consistency with national and international law; use of country systems, where appropriate; cost implications for the PCR policy; application to emergency recovery projects; and chance finds under Category C projects. The OP/BP has been revised to take into account the issues raised by Committee members. IEG observed that its concerns about project classification in relation to the Bank s safeguards policies and about chance finds had been satisfactorily addressed. Finally, the OP/BP includes minor editing for simplification and clarification. 18. A matrix comparing the provisions of OPN with the consultation and final drafts of OP/BP is in Annex C. The proposed revised text for Table A1 of OP 4. is in Annex D.

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10 Annex A OPN 1 I.3 - Management of Cultural Property in Bank- Financed Projects These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject. OPN 11.3 August, 1999 OP is under preparation. Until it is issued, Bank staff are guided by the provisions of Operational Policy Note (OPN) 11.3, which is reprinted here. The technical paper referred to in the OPN is no longer available. Introduction WORLD BANK OPERATIONAL POLICY NOTE NO MANAGEMENT OF CULTURAL PROPERTY IN BANK-FINANCED PROJECTS 1. The United Nations term "cultural property" includes sites having archeological (prehistoric), paleontological, historical, religious, and unique natural values. Cultural property, therefore, encompasses both remains left by previous human inhabitants (for example, middens, shrines, and battlegrounds) and unique natural environmental features such as canyons and waterfalls. The rapid loss of cultural property in many countries is irreversible and often unnecessary. Detailed background information on all aspects of this note are contained in the technical paper of the same title, available from the Office of Environmental and Scientific Affairs, Projects Policy Department, which is ready to provide assistance on request. Policy Guidance 2. The World Bank's'general policy regarding cultural properties is to assist in their preservation, and to seek to avoid their elimination. Specifically: (a) The Bank normally declines to finance projects that will significantly damage non-replicable cultural property, and will assist only those projects that are sited or designed so as to prevent such damage. (b) The Bank will assist in the protection and enhancement of cultural properties encountered in Bank-financed projects, rather than leaving that protection to chance. In some cases, the project is best relocated in order that sites and structures can be preserved, studied, and restored intact in situ. In other cases, structures can be relocated, preserved, studied, and restored on alternate sites. Often, scientific study, selective salvage, and museum preservation before destruction is all that is necessary. Most such projects should include the training and strengthening of institutions entrusted with safeguarding a nation's cultural patrimony. Such activities should be directly included in the scope of the project, rather than being postponed for some possible future action, and the costs are to be internalized in computing overall project costs. (c) Deviations from this policy may be justified only where expected project benefits are great, and the loss of or damage to cultural property is judged by competent authorities to be unavoidable, minor, or otherwise acceptable. Specific details of the justification should be discussed in project documents. (d) This policy pertains to any project in which the Bank is involved, irrespective of whether the Bank is itself financing the part of the project that may affect cultural property. Procedural Guidance 3. The management of cultural property of a country is the responsibility of the government. Before proceeding with a project, however, which prima facie entails the risk of damaging cultural

11 property (e.g., any project that includes large scale excavations, movement of earth, surficial environmental changes or demolition), Bank staff must (I) determine what is known about the cultural property aspects of the proposed project site. The government's attention should be drawn specifically to that aspect and appropriate agencies, NGOs or university departments should be consulted: (2) If there is any question of cultural property in the area, a brief reconnaissance survey should be undertaken in the field by a specialist.' Procedures to be followed upon positive surveys are detailed in Chapter 6 of the technical paper. September The World Bank includes the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA) and the International Finance Corporation (IFC). A survey form is attached to the technical paper

12 THE WORLD BANK OPERATIONAL MANUAL Operational Policies Annex B Draft OP 4.11 April 26 Page 1 of 4 PHYSICAL CULTURAL RESOURCES Note: OP and BP 4.11 together replace OPN 11.3, Management of Cultural Property in Bank- Financed Projects. OP and BP 4.11 are to be read in conjunction with OP and BP 4.1, Environmental Assessment. Introduction This policy addresses physical cultural resources, which are defined as movable or immovable objects, sites, structures, groups of structures, and natural features and landscapes that have archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Physical cultural resources may be located in urban or rural settings, and may be above or below ground, or underwater. Their cultural interest may be at the local, provincial or national level, or within the international community. Physical cultural resources are important as sources o f valuable scientific and historical information, as assets for economic and social development, and as integral parts of a people s cultural identity and practices. Objective 3. The Bank2 assists countries to avoid or mitigate adverse impacts on physical cultural resources from development projects3 that it finances. The impacts on physical cultural resources resulting from project activities, including mitigating measures, may not contravene either the borrower s national legislation, or its obligations under relevant international environmental treaties and agreement^.^ Physical Cultural Resources within Environmental Assessment 4. The borrower addresses impacts on physical cultural resources in projects proposed for Bank financing, as an integral part of the environmental assessment (EA) process. The steps Also known as cultural heritage, cultural patrimony, cultural assets or cultural property. Bank is as defined in OP/BP 4.1, Environmental Assessment. The project is described in Schedule 2 to the Financing Agreement. This policy applies to all components of the project, regardless of the source of financing. This includes the Convention concerning the Protection of the World Cultural and Natural Heritage, 1972 (UNESCO World Heritage Convention). These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.

13 ~ ~ THE WORLD BANK OPERATIONAL MANUAL Operational Policies Annex B Draft OP 4.11 April 26 Page 2 of 4 elaborated below follow the EA sequence of: screening; developing terms o f reference (TOR); collecting baseline data; impact assessment; and formulating mitigating measures and a management plan The following projects are classified during the environmental screening process as Category A or B, and are subject to the provisions of this policy: (a) any project involving significant excavations, demolition, movement of earth, flooding, or other environmental changes; and (b) any project located in, or in the vicinity of, a physical cultural resources site recognized by the borrower. Projects specifically designed to support the management or conservation of physical cultural resources are individually reviewed, and are normally classified as A or B.6 To develop the TOR for the EA, the borrower, in consultation with the Bank, relevant experts, and relevant project-affected groups, identifies the likely physical cultural resources issues, if any, to be taken into account by the EA. The TOR normally specify that physical cultural resources be included in the base-line data collection phase of the EA. The borrower identifies physical cultural resources likely to be affected by the project and assesses the project's potential impacts on these resources as an integral part of the EA process, in accordance with the Bank's EA requirement^.^ When the project is likely to have adverse impacts on physical cultural resources, the borrower identifies appropriate measures for avoiding or mitigating these impacts as part of the EA process. These measures may range from full site protection to selective mitigation, including salvage and documentation, in cases where a portion or all of the physical cultural resources may be lost. As an integral part of the EA process, the borrower develops a physical cultural resources management plan8 that includes measures for avoiding or mitigating any adverse impacts on physical cultural resources, provisions for managing chance finds,' any necessary measures for strengthening institutional capacity, and a monitoring system to track the progress of these activities. The physical cultural resources management plan is consistent with the country's overall policy framework and national legislation and takes into account institutional capabilities in regard to physical cultural resources. 1. The Bank reviews, and discusses with the borrower, the findings and recommendations related to the physical cultural resources aspects o f the EA, and determines whether they provide an adequate basis for processing the project for Bank financing." See OP 4.1, Environmental Assessment. For definitions ofproject categories A and B, see OP 4.1, Environmental Assessment, paragraph 8. See OP 4.1, Environmental Assessment. * If there is an Environmental Management Plan, it incorporates the physical cultural resources management plan. See OP 4.1, Environmental Assessment, Annex C. For the purposes of this policy, 'chance finds' are defined as physical cultural resources encountered unexpectedly during project implementation. lo See OP 4.1, Environmental Assessment, paragraph 5. These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.

14 THE WORLD BANK OPERATIONAL MANUAL Operational Policies Annex B Draft OP 4.11 April 26 Page 3 of 4 Consultation 11. As part of the public consultations required in the EA process, the consultative process for the physical cultural resources component normally includes relevant proj ect-affected groups, concerned government authorities, and relevant nongovernmental organizations in documenting the presence and significance of physical cultural resources, assessing potential impacts, and exploring avoidance and mitigation options. Disclosure 12. The findings of the physical cultural resources component of the EA are disclosed as part of, and in the same manner as, the EA report. Exceptions to such disclosure would be considered when the borrower, in consultation with the Bank and persons with relevant expertise, determines that disclosure would compromise or j eopardize the safety or integrity of the physical cultural resources involved or would endanger the source o f information about the physical cultural resources. In such cases, sensitive information relating to these particular aspects may be omitted from the EA report. Emergency Recovery Projects 13. This policy normally applies to emergency recovery projects processed under OP 8.5, Emergency Recovery Assistance. OP/BP 4.1, Environmental Assessment, sets out the application of EA to such projects.12 When compliance with any requirement o f OP 4.11, Physical Cultural Resources would prevent the effective and timely achievement of the objectives of an emergency recovery project, the Bank may exempt the project from such a requirement, recording the justification for the exemption in the loan documents. However, the Bank requires that any necessary corrective measures be built into either the emergency recovery project or a future lending operation. Specific Investment Loans and Financial Intermediary Loans 14. The physical cultural resources aspects of subprojects financed under Bank projects are addressed in accordance with the Bank s EA requirements. l3 Country Systems 15. The Bank may decide to use a country s systems to address environmental and social safeguards issues in a Bank-financed project that affects physical cultural resources. This See The World Bank Policy on Disclosure of Information, 22, paragraph 3 1. * See OP 4.1, Environmental Assessment, paragraph 12. l3 As set out in paragraphs 9, 1, and 11 of OP 4.1, Environmental Assessment. The relevant requirements in these paragraphs apply also to physical cultural resources aspects of other projects which are similarly designed to finance multiple sub-projects that are identified and appraised during the course of project implementation (e.g., social investment funds (SIFs) and community-driven development projects (CDDs)). These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.

15 ~ THE WORLD BANK OPERATIONAL MANUAL Operational Policies Annex B Draft OP 4.11 April 26 Page 4 of 4 decision is made in accordance with the requirements of the applicable Bank policy on country systems. 14 Capacity Building 16. When the borrower s capacity is inadequate to manage physical cultural resources that may be affected by a Bank-financed project, the project may include components to strengthen that capacity. 17. Given that the borrower s responsibility for physical cultural resources management extends beyond individual projects, the Bank may consider broader capacity building activities as part of its overall country assistance program. l4 OPIBP 4., Piloting the Use of Borrower Systems to Address Environmental and Social Safeguards Issues in Bank-Supported Projects, which is applicable only to pilot projects using borrower systems, includes requirements that such systems be designed to meet the policy objectives and adhere to the operational principles related to physical cultural resources identified in OP 4.1 1, Physical Cultural Resources. l5 See OP 4.1, Environmental Assessment, paragraph 13. These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.

16 THE WORLD BANK OPERATIONAL MANUAL Bank Procedures Annex B Draft BP 4.11 April 26 Page 1 of 4 PHYSICAL CULTURAL RESOURCES Note: OP and BP 4.11 together replace OPN 11.3, Management of Cultural Property in Bank- Financed Projects. OP and BP 4.11 are to be read in conjunction with OP and BP 4.1, Environmental Assessment. Introduction 1. Physical cultural resources may not be known or visible; therefore, it is important that a project's potential impacts on physical cultural resources be considered at the earliest possible stage of the project planning cycle. Physical Cultural Resources within Environmental Assessment 2. The task team (TT) advises the borrower on the provisions of OP and their application as an integral part of the Bank's environmental assessment (EA) process as set out in OPBP 4.1, Environmental Assessment. The steps elaborated below follow the project cycle processes of screening, developing terms of reference (TOR) for the EA, preparing and reviewing the EA report, and project appraisal, supervision and evaluation. Environmental Screening 3. As part of the environmental screening process, the TT determines whether the project (a) will involve significant excavations, demolition, movement of earth, flooding or other environmental changes; or (b) will be located in, or in the vicinity of, a physical cultural resources site recognized by competent authorities of the borrower; or (c) is designed to support management of physical cultural resources. If the project has any of the characteristics set out in (a) or (b), it is assigned to either Category A or B, in accordance with OP 4.1, Environmental Assessment. If the project has the characteristic set out in (c), it is normally assigned to either Category A or B. The procedures set out below are followed for all projects so categorized.' 4. The TT requests that the borrower inform the Bank of the relevant requirements of its legislation and of its procedures for identifying and mitigating potential impacts on physical cultural resources, including provisions for monitoring such impacts, and for managing chance finds.2 For definitions of project categories A and B, see OP 4.1, Environmental Assessment, paragraph 8. * For the purposes of this policy, chance finds are defined as physical cultural resources encountered unexpectedly during project implementation. These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.

17 THE WORLD BANK OPERATIONAL MANUAL Bank Procedures Annex 3 Draft BP 4.11 April 26 Page 2 of 4 Terms of Reference for the EA 5. The TT advises and assists the borrower, as necessary, in drafting the TOR for the physical cultural resources component o f the EA. In preparing the TOR, the borrower identifies the likely major physical cultural resources issues, if any, to be taken into account in the EA. This identification of the possible presence o f physical cultural resources is normally conducted on-site, in consultation with relevant experts and relevant project-affected groups. 6. The TOR propose spatial and temporal boundaries for the on-site collection of baseline data on physical cultural resources potentially affected by the project, and specify the types of expertise required for the physical cultural resources component of the EA. Consultation 7. Since many physical cultural resources are not documented, or protected by law, consultation is an important means of identifying such resources, documenting their presence and significance, assessing potential impacts, and exploring mitigation options. Therefore, the TT reviews the mechanisms established by the borrower for consultation on the physical cultural resources aspects o f the EA, in order to ensure that the consultations include meetings with project-affected groups, concerned government authorities and relevant nongovernmental organizations. Baseline and Impact Assessment 8. The TT ensures that the physical cultural resources component of the EA includes (a) an investigation and inventory of physical cultural resources likely to be affected by the project; (b) documentation of the significance o f such physical cultural resources; and (c) assessment of the nature and extent of potential impacts on these resources. Mitigating Measures 9. When the project may have adverse impacts on physical cultural resources, the EA includes appropriate measures for avoiding or mitigating these impacts. Capacity Assessment 1. The EA assesses the borrower's capacity for implementing the proposed mitigating measures and for managing chance finds, and where appropriate, recommends capacity building measures. ~~ ~~ ~ These procedures were prepared for use by World Bank staff and are not necessan'ly a complete treatment of the subject.

18 THE WORLD BANK OPERATIONAL MANUAL Bank Procedures Annex B Draft BP 4.11 April 26 Page 3 of 4 Management Plan 1 1. The EA involves the preparation of a physical cultural resources management plan3 that includes (a) measures to avoid or mitigate any adverse impacts on physical cultural resources; (b) provisions for managing chance finds4; (c) any necessary measures for strengthening institutional capacity for the management o f physical cultural resources; and (d) a monitoring system to track the progress of these activities. Review 12. When reviewing the findings and recommendations of the EA, the TT discusses with the borrower the physical cultural resources components o f the EA, including the physical cultural resources management plan, and determines whether these components provide an adequate basis for processing the project for Bank financing. Disclosure 13. The TT consults with the borrower and persons with relevant expertise on whether disclosure of the findings of the physical cultural resources component of the EA would jeopardize the safety or integrity of any of the physical cultural resources involved. In addition, the TT consults the borrower to determine whether disclosure could endanger the source of information regarding the physical cultural resources. In such cases, sensitive information relating to these particular aspects, such as the precise location or value of a physical cultural resource, may be omitted from the EA rep1-t.~ Project Appraisal 14. As appropriate, the appraisal team includes relevant physical cultural resources expertise. 15. During appraisal, the TT ensures that the findings and recommendations of the physical cultural resources components of the EA, including the physical cultural resources management plan, are adequately reflected in project design, and are recorded in the Project Appraisal Document (PAD). 16. The TT ensures that the estimated cost of implementing the physical cultural resources management plan is included in the project budget. If there is an Environmental Management Plan, it incorporates the physical cultural resources management plan. See OP 4.1, Environmental Assessment, Annex C. If a chance find occurs for a project that does not require an EA report, the borrower will prepare a timely chance find management plan, satisfactory to the Bank. See the World Bank Policy on the Disclosure of Information, 22, paragraph 31. These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.

19 THE WORLD BANK OPERATIONAL MANUAL Bank Procedures Annex B Draft BP 4.11 April 26 Page 4 of 4 Supervision and Evaluation 17. For projects in which the physical cultural resources management plan incorporates provisions for safeguarding physical cultural resources, supervision missions include relevant expertise to review the implementation of such provisions. 18. During project supervision, the TT monitors the implementation of the physical cultural resources management plan, including provisions for the treatment of chance finds. The TT also ensures that chance finds procedures are included in procurement documents, as appropriate. The TT monitors the treatment of any chance finds and any other impacts on physical cultural resources that may occur during project implementation, and records relevant findings in the Implementation Status and Results Reports (ISRs). 19. Implementation Completion Reports (ICRs) assess the overall effectiveness of the project s physical cultural resources mitigation, management, and capacity building activities, as appr~priate.~ Capacity BuiIding 2. The TT reviews the need, if any, for enhancement of the borrower s capacity to implement this policy, particularly in respect of information on physical cultural resources, on-site training, institutional strengthening, inter-institutional collaboration, and rapid-response capacity for handling chance finds. The TT then considers the need for such capacity enhancement, including project components to strengthen capacity. When the needs extend beyond the scope of the project, the TT draws the attention of the relevant Country Director to the possibility of including such capacity building within the overall country assistance program. See OPBP 13.5, Project Supervision. See OPA3P 13.55, Implementation Completion Reporting. See OP 4.1, Environmental Assessment, paragraph 13. ~ ~ ~ These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.

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30 Annex D Proposed text for Table A1 of OP 4., Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects. Objectives Operational Principles G. Physical Cultural Resources (PCR) To assist in preserving physical cultural resources and avoiding their destruction or damage. PCR includes resources of archaeological, paleontological, historical, architectural, religious (including graveyards and burial sites), aesthetic, or other cultural significance Use an environmental assessment (EA) or equivalent process to identify PCR and prevent or minimize or compensate for adverse impacts and enhance positive impacts on PCR through site selection and design. As part of the EA, as appropriate, conduct field based surveys, using qualified specialists. Consult concerned government authorities, relevant nongovernmental organizations, relevant experts and local people in documenting the presence and significance of PCR, assessing the nature and extent of potential impacts on these resources, and designing and implementing mitigation plans. For materials that may be discovered during project implementation, provide for the use of chance find procedures in the context of the PCR management plan or PCR component of the environmental management plan. Disclose draft mitigation plans as part of the EA or equivalent process, in a timely manner, before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders.