INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Copy Public Disclosure Copy Date ISDS Prepared/Updated: 04-Apr-2014 INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Date ISDS Approved/Disclosed: 11-Apr-2014 I. BASIC INFORMATION 1. Basic Project Data Country: Vietnam Project ID: P Project Name: Transmission Efficiency Project (TEP) (P131558) Task Team Peter Johansen Leader: Estimated 10-Apr-2014 Appraisal Date: Managing Unit: EASVS Estimated Board Date: Lending Instrument: Report No.: ISDSA Jul-2014 Specific Investment Loan Sector(s): Transmission and Distribution of Electricity (100%) Theme(s): Infrastructure services for private sector development (100%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Financing (In USD Million) Total Project Cost: Total Bank Financing: Financing Gap: 0.00 Financing Source Amount Borrower International Bank for Reconstruction and Development Total Environmental B - Partial Assessment Category: Is this a No Repeater project? 2. Project Development Objective(s) The Project Development Objective (PDO) is to improve the capacity, efficiency and reliability of electricity transmission services in selected parts of the network in Vietnam 3. Project Description The proposed project is comprised of the following three components: (i) The Transmission Infrastructure Component; (ii) The Smart Grid Component; and (iii) The Capacity Building and Page 1 of 11

2 Institutional Strengthening Component. Public Disclosure Copy Public Disclosure Copy The Transmission Infrastructure Component will finance transmission lines and substations at voltage levels of 220kV and 500kV. The investments will target three areas that are key to the overall economic development of Vietnam, namely the Greater Hanoi Area, the Greater Ho Chi Minh City Area and the Mekong Delta. Investments at the 500kV level will help increase the transport capacity of the main 500kV trunk system while increasing its reliability. Investments at the 220kV level are aimed at increasing the capacity of the supply points to the distribution utilities and improve the reliability of the network that serves these points. The subprojects will be selected based on key parameters, including: (i) priority areas in the PDMP7 and the match with the Project s PDO; (ii) technical and economic justification; and (iii) readiness for implementation in terms of environmental issues and land acquisition. Since all sub-components are derived from the short- to mid-term needs identified in the PDMP7, they are already at a reasonably advanced stage of preparation from a technical perspective. Many sub-components have basic detailed design and detailed technical and economic justification. The Smart Grid Component will support modernization of monitoring, control, and protection equipment in 500kV and 220kV substations to improve the reliability of the interconnected power system as a whole and of some bulk-supply points in the distribution network. Today, 60 percent of the faults in substations are a consequence of faulty operations of monitoring, control, and protection equipment. Aided by monitoring and control gear, protection equipment: (i) detects - among other things - the locations and intensity of faults and, based on such information, determines what equipment should be disconnected to protect the system from damage; and (ii) decides when disconnected equipment should be reconnected to ensure that interruptions in the provision of electricity services are minimized. The Capacity Building and Institutional Strengthening Component. In line with the power sector reform agenda, this component will support the National Power Corporation s (NPT) move towards becoming an independent transmission company with cost-reflective tariffs and performance tracking for regulatory purposes. This will achieve the combined objectives of financial viability for NPT and provision of adequate and reliable transmission services which is key for the functioning of the future electricity wholesale market. The Component 3 activities have been selected to support this development and to complement other ongoing activities in the context of the overall institutional energy reform agenda including the World Bank s (WB) Development Policy Operation (DPO) series and technical assistance (TA) on Strategic Options for Enhanced Financial Performance of Electricity of Vietnam (EVN). 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project will be focused on the greater Hanoi and Ho Chi Minh City areas, the central region, and the Mekong Delta. The sub-projects under component 1 would be scattered in many provinces covering a wide variety of physical landscapes, including mountainous areas in the north, central highlands in the central provinces, and the flat flood plains in the south. The preliminary identified sub-projects would be located in the provinces on Quang Ninh, Hoa Binh, Bac Giang, Bac Ninh, and Hanoi in the north; Quang Ngai and Binh Dinh in the central; and Ho Chi Minh city, Binh Duong, Dong Nai, Long An, and Tien Giang Province in the south. Page 2 of 11

3 The smart grid activities under component 2 would be executed in the existing five 500kV substations in Hoa Binh, Ha Tinh, Da Nang, Pleiku provinces, and Ho Chi Minh city, and eleven 220kV substations in Hanoi, Ninh Binh, Thai Binh, Thai Vinh, DakLak, Binh Dinh, Lam Dong, Tien Giang, and Can Tho). Most 500 kv and 220kV transmission lines would start from the existing substations. The routes would go over some mountainous areas in the north, hilly terrains in the central provinces, and flat flood plain of the Mekong Delta. They may traverse some agricultural (rice and cereals) and garden land (fruit trees and coffee), rural residential land, and undeveloped land (covered with shrubs). Although there are protected areas in the project provinces, there are no protected or declared conservation areas or nature reserves within the project site or surrounding areas that might potentially be affected by project activities. The existing vegetation cover of the substation and transmission line construction areas contains no sites with rare plant species. Installation of the transmission towers for the 500 kv and 220kV lines at high elevations and in uplands along both sides of water bodies will have no significant negative impacts on water quality. During project preparation, aligning transmission corridors and locating substations will be carefully considered in order to avoid critical habitats and important physical cultural resources and to limit land acquisition. 5. Environmental and Social Safeguards Specialists Son Van Nguyen (EASVS) Nghi Quy Nguyen (EASVS) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ BP 4.01 Yes This policy is triggered because the Project involves the construction, rehabilitation, and operation of high-voltage substations and overhead transmission lines, requiring the identification, mitigation and monitoring of potential adverse environmental and social impacts. Natural Habitats OP/BP 4.04 Yes The screening of the Group 1 sub-project environmental assessments confirmed that no natural habitats will be affected by these subprojects. However, there are new sub-projects to be identified during implementation, which may involve natural habitats. As a result, a precautionary approach has been adopted by triggering this policy under the project. Forests OP/BP 4.36 Yes The policy is triggered considering that some subprojects may involve acquisition of forest land for maintaining the right of ways of the power transmission lines. These activities may have the potential to have adverse impacts on the rights and welfare of local people and their level of Page 3 of 11

4 dependence upon low quality natural forests and plantation forests. Pest Management OP 4.09 No The Project will not involve any investment that would result in procurement of pesticides or any increase in the use of pesticides. Therefore, the policy is not triggered. Physical Cultural Resources OP/ BP 4.11 Yes The sub-projects under the project may be located in the vicinity of physical cultural resources such as monuments, temples, churches, religious/ spiritual and cultural sites. Indigenous Peoples OP/BP 4.10 Yes The Project will entail multiple subprojects mainly in West Hanoi, Central Region, Mekong Delta Region, and North-East HCMC. Given the large geographical area and scattered distribution of the ethnic minority population in Vietnam, the presence of ethnic minoritypeople in a given subproject of TEP is not unlikely. Involuntary Resettlement OP/BP 4.12 Yes The Project would have impacts involving the temporary or permanent involuntary land acquisition (agricultural, orchard, garden or residential) and the loss of structures and assets (or access to assets) associated with land. The Project s potential impacts are due to the construction of transmission lines (foundations, right-of-way), substations, and access roads, among others. Safety of Dams OP/BP 4.37 No The Project involves no construction of dams nor are the project activities vulnerable in any way to any upstream dam. Therefore, the policy is not triggered. Projects on International Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 No No No Project activities are to be carried out on an international waterway. Therefore, the policy is not triggered. No part of the Project activities are in a disputed area so the policy is not triggered. 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: Implementation of the project components would benefit NPT and all segments of the population from: (i) Improved power reliability, which will reduce un-served demand and the number and duration of power outages; and (ii) Increased energy efficiency, which will reduce overall costs and, potentially, GHG emissions. The project would also bring direct temporary benefits for skilled and unskilled workers that would be employed for the construction of the project. Project investments in Component 1 are divided into two groups. Group 1 investments consist of eight Page 4 of 11

5 sub-projects whose location, design and impact are defined at this stage of preparation. The detailed list of sub-projects is provided in Annex 6 of the PAD. The impacts pertaining to these sub-projects are described in the ISDS. Group 2 investments are not yet defined and their detailed design will be agreed upon during project implementation. The preparation of safeguard instruments reflects this situation so that adequate measures are in place to deal with the known and potential set of investments. The potential adverse impacts would mainly be associated with implementation of component 1, which includes typical civil works at the subproject areas such as new construction, rehabilitation, and expansion of the substations (transformers and other electrical equipment) and transmission lines (power towers, poles, and wiring). Potential adverse impacts of the project during site preparation and construction include (i) those related to (i) land acquisition and resettlement for construction of the substations, power towers, and ROW; (ii) increased levels of dust, noise, and other emissions from excavation activities, land clearing activities, material stockpiles, operation of heavy equipment, and transportation of construction materials and electrical equipment; (iii) construction site waste generation; (iv) traffic disturbance and road damage due to the transportation of building materials and equipment; (v) small scale soil erosion, sediment, landslide risks, and localized flooding; (vi) unexploded ordnance risks; and (vii) health and safety issues for workers and community. The impacts, however, will be small to moderate, localized, and temporary, and can be mitigated. The potential negative impacts during operation of Component 1 sub-projects would be the effects associated with exposure to electric and magnetic fields from high voltage power lines and substations. These risks can be reduced to minimum by strictly applying national technical regulations and standards, which are comparable with international standards, in the design phase and following electricity safety regulations during operation. The potential risk of oil leakage from transformers is addressed by construction of emergency oil collection and storage tank as required by the Vietnamese regulation and included in the EMPs of such type of sub-projects. The potential risk of the Polychlorinated Biphenyls (PCBs) will be treated strictly as in Section 5 of the Environmental and Social Management Framework (ESMF) prepared for this project. The environmental assessment (EA) instruments of the eight Group 1 sub-projects under Component 1 confirmed the above mentioned impacts. Physical Cultural Resources (PCRs): The sub-projects under the project may be located in the vicinity of physical cultural resources such as monuments, temples, churches, religious/spiritual and cultural sites, and thus may have the potential to have impacts on these PCRs. The ESMF includes a screening process aimed at identifying possible PCRs and at consequently refraining investments in nearby areas. Further, the ESMF includes a "chance find" procedure in case such property is encountered, establishing an immediate cessation of construction activity and reporting to the appropriate authorities. The impacts and associated mitigation measures for relocation of graves will be included in the related subproject environmental management plan (EMP) and resettlement plan (RP). Indigenous People (IP): The screening of group 1 (already defined) sub-projects confirmed that only one sub-project has ethnic minority people living in the area (Hoa Binh West Hanoi 220kV Transmission Line sub-project). The impact is expected to be minor, mainly related to the acquisition of small parcel of land for tower position, limited use of existing land in ROW, disturbance for communities during the construction. These impacts and associated mitigation measures are included in the relevant safeguard documents prepared for this subproject (e.g. RP, Page 5 of 11

6 EMDP). In Hoa Binh West Ha Noi 220kV TL, there are totally 95 ethnic minority households affected by land acquisition for the construction of the tower foundation. Furthermore, since there are new sub-projects in group 2 (potential) that are still to be identified, the likelihood of having ethnic minority communities living in these subproject areas is relatively high. The Ethnic Minority Planning Framework includes a screening procedure and guidelines to screen for these potential sub-projects and ensure the achievement of policy s objectives. Involuntary Resettlement (IR): The land acquisition impacts are only limited to investments proposed in component 1. The level of impacts may vary depending on the nature of infrastructure and typically include the physical relocation, the loss of land (agricultural, residential) and associated structures/assets. These impacts and associated mitigation measures are covered in Resettlement Plan of each of the 8 sub-projects in Group 1. These sub-projects impact 1785 affected households, of which 11 households need to be relocated and 259 households loose more than 20% of their total land holdings. The Resettlement Policy Framework (RPF) is also developed to guide the preparation and implementation of RPs for investments of group 2 which will be identified during project implementation. Natural habitats: The screening of the Group 1 sub-project Environmental Impact Assessments (EIAs)/Environmental Protection Commitment (EPC) confirmed that no natural habitats will be affected by these sub-projects. However, there are new sub-projects to be identified during implementation, which may involve natural habitats. As a result, a precautionary approach has been adopted by triggering this policy under the project. Thus, all subproject proposals will be screened for potential adverse impacts on natural habitats and necessary mitigation measures will be prepared as part of the subproject specific EIA and EMP. The Project will not fund any subproject that would involve the significant conversion or degradation of critical natural habitats. Forests: Some sub-projects may involve acquisition of forest land for maintaining ROW of the power transmission lines. These activities may have the potential to have adverse impacts on the rights and welfare of local people and their level of dependence upon low quality natural forests and plantation forests. Impacts on forests and associated mitigation measures will be included in the subproject EIA and EMP. The project will not fund any subproject that would involve significant conversion or degradation of critical forest areas. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The potential impacts related to operation of the subproject infrastructure are described in previous section. No other negative potential indirect and/or long term environmental and social impacts due to future activities are anticipated in the project areas. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. During preparation of the project, screening has been carried out for all Group 1 sub-projects to exclude all investment proposals that would go against the project development objective. To minimize the potential adverse impacts, the project has also considered alternatives to the investment proposals prepared by the regional Power Project Management Boards (PMBs), prioritized them based on the anticipated positive and negative impacts, and developed screening checklists to exclude all investment proposals that may cause significant or irreversible social and environmental impacts. A sub-project will not be eligible for funding if it would: i) involve the significant conversion or degradation of critical natural habitats; ii) involve significant conversion or degradation of critical forest areas; iii) contravene applicable international environmental Page 6 of 11

7 agreements; and iv) be located in a physical cultural resources site recognized at the national or provincial level. In addition, PMBs will ensure that the transmission lines will go mainly over high to low hills, agricultural land, irrigation canals, and along the corridor of existing roads, avoiding residential areas, urban centers where the project may cause significant impacts on land acquisition and relocation. 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. To address the project negative social and environmental impacts the following safeguard documents have been prepared by the PMBs, reviewed by the Bank environment and social specialists and found to be satisfactory. Environment: Given that the sub-projects willbe implemented following a two-group approach, an ESMF has been prepared by NPT to ensure that activities to be financed under the project would not create adverse impacts on the local environment and local communities, and that the residual and/or unavoidable impacts will be adequately mitigated. The framework covers requirements for: (i) adequate safeguards screening including impacts on natural habitats, forests, and physical cultural resources; (ii) impact assessment and development of mitigation measures, including the Environmental Codes of Practice (ECOP) for construction activities and chance finds procedures; (iii) safeguards documentation preparation and clearance; (iv) safeguards implementation, supervision, monitoring, and reporting; (v) institutional strengthening and capacity building programs; and (vi) institutional arrangements and budget. The ESMF identifies the requirements for the preparation of an Environmental Management Plans (EMP) for a subproject to comply with the World Bank s and Government s regulations on EIA. The ECOPs will be incorporated into the bidding and contract documents and be closely monitored by supervision engineers. The Government s regulations on EIA require the preparation of an Environmental Impact Assessment (EIA) an Environmental Protection Commitment (EPC), which is a simplified EIA, for an investment project. Accordingly, seven EIAs and an EPC for the Group 1 sub-projects have also been prepared and submitted for Government approval. The Group 2 sub-projects will comply with Government regulations, which require an EIA for every Component 1 sub-project, as well as the Bank s safeguards policy requirements as specified in the ESMF. The EMPs for the eight Group 1 sub-projects have been prepared following the ESMF. These EMPs have also been reviewed by the Bank and found satisfactory. The same procedures will apply to the Group 2 sub-projects during implementation. Social: Ethnic Minority Planning Framework (EMPF): The EMPF will cover the potential sub-projects in group 2 that will be defined during implementation. These sub-projects may cover a large geographical area and it is likely that ethnic minority households may be affected. The EMPF was prepared, conforming to the OP 4.10 on Indigenous Peoples, ensuring that the development of subprojects fully respects the dignity, human rights, economies, and culture of affected ethnic minority peoples. The implementing agencies (PMBs) must be able to demonstrate that it has obtained broad community support for the subproject through a process of free, prior, and informed consultations with the affected ethnic minority communities. In this regard, the EMPF sets out guidelines to: (a) ensure that the ethnic minority peoples receive social and economic benefits that are culturally appropriate; (b) avoid potentially adverse effects on the ethnic minority communities; and (c) when such adverse impacts cannot be avoided, minimize, mitigate, or compensate for such effects. The framework covers guidance on (i) preliminary screening; (ii) Page 7 of 11

8 social assessment; (iii) preparation of EMDP; (iv) implementing arrangement; (v) Estimated budget; and (vi) Monitoring and Evaluation. Public Disclosure Copy Public Disclosure Copy Ethnic Minority Development Plan (EMDP): Within the 8 sub-projects in group 1, only 1 subproject will impact an ethnic minority group which is the Muong community. The project has prepared an EMDP for this sub-project Hoa Binh West Ha Noi 220kV T/L. The EMDP includes a summary of the SA, consultations, the scope of impacts and mitigation measures, activities for the enhancement of project implementing agencies and estimated costs for the Plan. The estimated budget for EMDP is 864,000,000 VND (equivalent to US$ 41,142). Resettlement Policy Framework (RPF): PMBs have also prepared a resettlement policy framework (RPF) in accordance to OP 4.12 on Involuntary Resettlement, and address the various types of land acquisition and resettlement that may occur during subproject preparation and implementation in group 2. It lays down the principles and objectives, eligibility criteria of displaced persons, modes of compensation and rehabilitation, participation features and grievance procedures that will guide the compensation and potential resettlement of these persons. It further describes the planning and documentation requirements for such activities under the project. Resettlement Plans (RPs): In consistency with the above-mentioned frameworks, PMBs have prepared 8 individual RPs for the 8 sub-projects in group 1 of component 1. The RPs include measures to ensure that displaced people are: (i) informed about the options regarding resettlement; (ii) consulted and offered alternative resettlement choices; and (iii) provided with effective compensation and livelihood restoration. The estimated budget for resettlement related activities is 401,853,266,352 VND (equivalent to US$ 19 million). 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. In addition to the EVN NPT, subproject PMBs responsible for the implementation of the project, other key stakeholders are people s committees, local authorities, local communities, mass organizations, and general public. Public consultations and disclosure of thegroup 1 sub-project EIAs, EMPs, RPs and EMDPs were carried during project preparation. Consultation with people and households affected by the project, local authorities, and mass organizations has been conducted at the subproject level. During preparation of the ESMF, RPF and EMPF, a consultation workshop was held in January Key participants included staff of implementing PMBs, representatives of MoIT, NPT, and local consultants. Feedbacks from all the consultations were taken into account in the preparation of the final documents and for sub-projects design. Prior to project appraisal, all safeguard documents (ESMF, EIAs/EPC, EMPs, RPF, EMPF, RPs, EMDP) have been disclosed in Vietnamese at the Vietnam Development Information Center, the NPT, the PMBs, and subproject areas in the project provinces. They have also been disclosed in English at the Bank s InfoShop in Washington DC. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission to InfoShop 20-Jan-2014 Page 8 of 11

9 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure Vietnam Comments: Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 20-Jan-2014 Date of submission to InfoShop "In country" Disclosure Vietnam Comments: Indigenous Peoples Development Plan/Framework Date of receipt by the Bank 20-Jan-2014 Date of submission to InfoShop "In country" Disclosure Vietnam Comments: If the project triggers the Pest Management and/or Physical Cultural Resources policies, 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: C. Compliance Monitoring Indicators at the Corporate Level 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 Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? OP/BP Physical Cultural Resources Does the EA include adequate measures related to cultural property? Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? Page 9 of 11

10 OP/BP Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate) been prepared in consultation with affected Indigenous Peoples? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? If the whole project is designed to benefit IP, has the design been reviewed and approved by the Regional Social Development Unit or Sector Manager? 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 Forests Has the sector-wide analysis of policy and institutional issues and constraints been carried out? Does the project design include satisfactory measures to overcome these constraints? Does the project finance commercial harvesting, and if so, does it include provisions for certification system? 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? III. APPROVALS Task Team Leader: Approved By Name: Peter Johansen Page 10 of 11

11 Regional Safeguards Name: Peter Leonard (RSA) Date: 10-Apr-2014 Advisor: Sector Manager: Name: Jennifer J. Sara (SM) Date: 11-Apr-2014 Page 11 of 11

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