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JBIC Guidelines for Confirmation of Environmental and Social Considerations

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Title: JBIC Guidelines for Confirmation of Environmental and Social Considerations


1
JBIC Guidelines for Confirmation of Environmental
and Social Considerations
  • December 1, 2006 in Beijing
  • Tadashi Maeda
  • Director General for Energy and Resources

2
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

3
Outline of the Guidelines
4
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

5
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

6
Procedures for JBIC confirmation under the
Guidelines
7
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
8
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

9
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

10
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

11
Categorization of projects
Project
Impact
Large
Classification by JBIC (based on Screening form)
FI
(ü)
ü
Small
12
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)

13
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

14
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.

15
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

16
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.

17
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.

18
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

19
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.

20
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.

21
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.

22
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

23
  • Please visit http//www.jbic.go.jp

Thank you.
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