JBIC Guidelines for Confirmation of Environmental and Social Considerations

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JBIC Guidelines for Confirmation of Environmental
and Social Considerations

• December 1, 2006 in Beijing
  
• Tadashi Maeda
• Director General for Energy and Resources

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Contents

• Outline of the Guidelines
• Procedures for the JBIC Confirmation under the
  Guidelines
• Environmental and Social Considerations required
  for the JBIC Funded Projects under the Guidelines

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Outline of the Guidelines
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Major pillars of JBICs position

• Making the guidelines through transparent
  procedures including consultations with the
  stakeholders
• Proactive disclosure of the information
• a. The results of the categorization
• b. EIA
• c. The results of review by JBIC
• Due attention to the social impacts
• Introducing the objections mechanism

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Other key principles

• (1)The Project sponsors and implementers assume
  the primary responsibility for Environmental
  consideration of the Project.
• (2) Importance of project stakeholders, including
  local residents affected by the project and local
  NGOs, in the environmental and social
  consideration process.
• (4)Result of environmental and social
  considerations to be taken into account in loan
  agreements or other relevant documents.
• (5) Monitoring and follow-up

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Procedures for JBIC confirmation under the
Guidelines
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Procedure of JBIC Review (Category A project)
Project Proposal
Disclosure
1.Screening and Categorization
EIA report Outline of the project Category
classification
2.EIA review and draft Checklist
(Employment of external consultant )
3.Questionnaire sending (twice in case of
normal process) and Answer receiving
4.Project site visit and confirmation of
the answers to our questionnaire
5. Finalizing the consultant report and the
Checklist
Check report and Screening Form
6.Finalizing the Report
Loan Agreement
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Screening and Categorization

• Magnitude of impacts based on Sector, Scale,
  Characteristics, and Feature of location
• Using Screening form (See examples later..)
• Classification into Category A, B, C, and FI
• Decide the magnitude of JBIC Review based on the
  Categorization

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Categorization

• Category ALikely to have significant adverse
  impacts
• Category BPotential adverse impacts are less
  adverse than those of Category A projects.
• Category CLikely to have minimal or no adverse
  environmental impacts
• 1) JBICs funding is below SDR 10 million
• 2) Human resources development etc.
• 3) Involvement of the borrower or JBIC is only
  minor
• Category FI Funding to financial intermediary
  etc., and sub-projects cannot be specified prior
  to JBICs approval of funding

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Environmental Review

• Category AEIA reports must be submitted.
  Environmental reviews undertaken based on the EIA
  and other reports (e.g. basic resettlement plan)
• Category BScope of reviews is narrower than that
  for Category A projects. EIA report is not a
  mandatory requirement.
• Category CEnvironmental reviews not proceed
  beyond screening
• Category FIConfirm through financial
  intermediaries etc. that environmental
  considerations are ensured

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Categorization of projects
Project
Impact
Large
Classification by JBIC (based on Screening form)
FI
(ü)
ü
Small
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Example for Category A

• Sensitive Sectors
• (e.g. Large-scale projects in Thermal power,
  dams, Oil and natural gas development,
  Petrochemicals, Airport, Harbor, Waste Disposal ,
  Irrigation and etc.)
• Sensitive Characteristics
• (e.g. Large-scale involuntary resettlement,
  ground water pumping, land reclamation)
• Sensitive Areas
• (e.g. Nationally-designated protected area,
  important ecology, historical or cultural value,
  ethnic minority)

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Disclosure of Information by JBIC

• Prior to making decision on funding,
• Outline of the project
• Category classification with its reason
• Documents (EIA, permit etc.) that JBIC obtains
• (for A and B)
• After L/A
• Results of Env. Review
• Observe the principles of information disclosure
  and commercial confidentiality concurrently

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Environmental and Social Considerations Required
for Funded Projects (1/5)

• (example)
• Underlying Principles
• Alternative measures to avoid and minimize env.
  and social impact must be examined and
  incorporated into project plan.
• Examination of Measures under the plan
• Alternative in the plan must be examined.
  Priority is Avoid, Minimize and Mitigation.

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Environmental and Social Considerations Required
for Funded Projects (2/5)

• Scope of Impact to be Examined
• Pollution
• Natural environment
• Social issues (e.g. Involuntary resettlement,
  indigenous people, cultural heritage)
• Communicable diseases, gender, childrens right
• Trans-boundaries and global environmental
  problems
• Compliance with Laws, Standards and Plans
• Compliance with regulations of borrowers country
• Reference with international standards

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Environmental and Social Considerations Required
for Funded Projects (3/5)

• Social Acceptability and social impacts
• Projects are accepted in a manner that is
  socially appropriate to the country and locality.
• For projects with large impacts, sufficient
  consultation with stakeholders must be conducted
  and the outcome must be incorporated in plan.

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Environmental and Social Considerations Required
for Funded Projects (4/5)

• Involuntary Resettlement
• Involuntary resettlement and loss of means of
  livelihood are to be avoided where feasible.
• When unfeasible, effective measures to minimize
  impacts and to compensate for losses must be
  agreed upon with the people to be affected.
• Living standard shall be kept or improved.
• Participation of the affected people shall be
  promoted in planning, implementation and
  monitoring.

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Environmental and Social Considerations Required
for Funded Projects (5/5)

• Indigenous People
• all their rights in relation to land and
  resources must be respected
• Monitoring
• In cases where sufficient monitoring is deemed
  essential for the achievement of
  environmental/social considerations, project
  proponents must ensure that project plans include
  monitoring plans which are feasible

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EIA reports for Category A Projects (1/3)

• For Category A projects, the following conditions
  must be met in principle in EIA reports.
• (1) When assessment procedures already exist in
  host countries, and projects are subject to such
  procedures, borrowers and related parties must
  officially complete those procedures and obtain
  the approval of the government of the host
  countries.

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EIA reports for Category A Projects (2/3)

• (2) EIA reports must be written in the official
  language or a language widely used in the country
  where the project is to be implemented. When
  explaining projects to local residents, written
  materials must be provided in a language and form
  understandable to them.

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EIA reports for Category A Projects (3/3)

• (3) EIA reports are required to be made available
  in the country and to the local residents where
  the project is to be implemented. The EIA reports
  are required to be available at all times for
  perusal by project stakeholders such as local
  residents, and copying must be permitted.
• (4) In preparing EIA reports, consultation with
  stakeholders, such as local residents, must take
  place after sufficient information has been
  disclosed (desirable at the time when item to be
  considered in EIA are being selected and draft
  report is being prepared). Records of such
  consultations must be prepared.

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Increasing Concerns for Environmental
Issues(Recent Experience of JBIC)

• Involuntary Resettlement
• Loss of livelihood (e.g. agricultural land loss,
  wastewater on fisheries)
• Adverse impacts of decreased flow due to a dam
  construction
• Natural resources (flora and fauna)
• ? Insufficient Information Dissemination,
  Consultation and lack of knowledge being a root
  cause

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• Please visit http//www.jbic.go.jp

Thank you.