ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM ... - ADB

Women’s Entrepreneurship Support Sector Development Program (RRP ARM 45230)

ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM ARRANGEMENT

A. Input to PAM: Safeguards

1. The FI loan under the Women’s Entrepreneurship Support Sector Development Program (WESSDP) has been categorized as Financial Intermediary (FI) with respect to environment safeguards. The Project is categorized FI on indigenous peoples/ ethnic minorities and FI (treated as C) on involuntary resettlement. ADB’s requirements to FI are provided below. B. ADB Safeguard Requirements 2. Environmental and social management system (ESMS). ADB’s Safeguard Policy Statement (2009) requires FIs to have in place or establish an appropriate ESMS to be maintained as part of their overall management system to meet national laws and/or ADB's requirements for FI projects. The ESMS will incorporate the following elements:

(i) environmental and social policies; (ii) screening, categorization, and review procedure; (iii) organizational structure and staffing including skills and competencies in environmental and social areas; (iv) training requirements; and (v) monitoring and reporting.

C. Environment Categorization 3. ADB uses a classification system to reflect the significance of a project’s potential environmental impacts. A project’s category is determined by the category of its most environmentally sensitive component, including direct, indirect, cumulative, and induced impacts in the project’s area of influence. Each proposed project is scrutinized as to its type, location, scale, and sensitivity and the magnitude of its potential environmental impacts. Projects are assigned to one of the following three categories:

(i) Category A. A proposed project is classified as category A if it is likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works. An environmental impact assessment is required.

(ii) Category B. A proposed project is classified as category B if its potential adverse environmental impacts are less adverse than those of category A projects. These impacts are site-specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects. An initial environmental examination is required.

(iii) Category C. A proposed project is classified as category C if it is likely to have minimal or no adverse environmental impacts. No environmental assessment is required although environmental implications need to be reviewed.

D. Social Categorization 4. In order to ensure compliance with ADB Safeguard Policy Statement, 2009 (SPS) safeguard requirement (SR) 2 on involuntary resettlement, any acquisition of fix assets under the credit loan that may cause involuntary resettlement (IR) will not be eligible for financing. Specific credit screening procedures to eliminate IR impacts will be prepared by the participating FIs to comply with this assurance.

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5. The MOE/SME DNC and PFIs will ensure the inclusion of potential SMEs clients from ethnic minority (EM) groups in the country through program’s outreach, technical assistance training activities that are fitting to the distinctive needs and characters of the groups and access to credit loan to the eligible clients. E. Screening, Categorization and Review Procedure

1. Stage 1: Screening

6. The screening procedure established under the FI’s ESMS will ensure that all subprojects are screened against the Subproject Screening Checklist (Annex 1). The checklist includes the following criteria:

1. Subprojects that are potentially in breach of any applicable government environmental, health, safety or social laws or regulations are excluded from financing;

2. Subprojects that will cause involuntary resettlement impacts are excluded from financing. Land acquisition can only be through market sales between willing buyers and sellers;

3. Subprojects involving business activities included in the Prohibited Investment Activities List (PIAL, Appendix 1) do not qualify for FI support using ADB funds and applications involving such activities will be rejected;

4. Appendix 2 presents an indicative list of Social and Environmental Risks by type of activities. Subprojects involving any high environmental and/or social risks are excluded from financing. PFIs should consult with ADB on all types of projects of medium/high social or environmental risks. No consultation is required for activities with low or medium risks;

5. Subprojects with potential social impacts defined in Annex 1 are excluded from financing.

2. Stage 2: Categorization

7. A PFI, in cooperation with a SME, assign a category to a subproject based on its environmental and social risks, its scale, and sensitivity of the project influence area. The definition of the ADB’s project categories (A, B, C) is provided above (ADB safeguard requirements). The indicative Environmental and Social Categorization List (Appendix 2) gives an assessment of the level of the environmental and social risks of different categories of activities. The categorization of the subprojects is based on the following principles:

Most sensitive component. The Environmental and Social Categorization List presents assessment of risk levels for both Environment, Health and Safety, and Social/Labor aspects. The most sensitive aspect (with the higher risk) defines the overall activity risk. If a subproject involves several activities, the categorization is by an activity with higher risk.

Category C. If the subproject activity is of low or sometimes low/medium risk, the subproject is located outside sensitive locations such as specially protected areas, reserves, historical monuments, etc (where appropriate), and of low scale (where appropriate) it can be categorized as C.

Category B. If the subproject activity is of medium or sometimes low/medium risk or medium/high risk and located outside sensitive locations such as specially protected areas, reserves, historical monuments, etc (where appropriate), and of medium scale (where appropriate) it can be categorized as B.

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Category A. If the subproject activity is of high or sometimes or medium/high risk and located within or in close proximity to sensitive locations such as specially protected areas, reserves, historical monuments, etc (where appropriate), and of medium scale (where appropriate) it can be categorized as A. All Category A projects are excluded from financing.

3. Stage 3: Reviewing

8. For Category C projects on environment no further action is required. For Category B projects the PFI discusses with the SME the scope of the environmental assessment report including environmental management plan (outline of the environmental assessment is provided in Appendix 3), as well as the procedures, schedules, and necessary clearances from the national environmental authorities for preparing these documents. The SME prepares the environmental assessment report and submits it to the PFI. The PFI reviews the document and clear it if it is satisfactory. The recommendations of the PFI and national environmental authorities (where appropriate) should be included into the subproject design and EMP. F. Public Consultation and Disclosure

9. The PFI is responsible for conducting the public consultation(s) for Category B projects. The PFI advises a SME that meaningful consultation with affected people will be carried out, and the consultation processes will be appropriately documented in the environment assessment report. The SME pays special attention to ensure that vulnerable groups have sufficient opportunities to participate in consultations. 10. The PFI’s responsibility is to disclose the environmental assessment report in a public place (local administration, library, etc) in vicinity to the project site. Alternatively, the SME may upload the report to the corporate website, and provide a respective link to the report in the local media. G. Responsibilities under FI Loan

(i) Responsibilities of a SME

Provide information on potential environmental and social risks to the PFI;

With assistance of the PFI fill in the Subproject Screening Checklist;

In case of Category B subproject prepare an environmental assessment report and environmental management plan in accordance with the outline (Attachment 3), organize public consultation and disclosure information;

For Category B subprojects the SME prepares and submit to the PFI an annual environmental monitoring report.

(ii) Responsibilities of PFIs

PFIs are responsible for screening, categorization and initial reviewing subprojects;

Depending on the size of the PFI and its business activities, the PFI will appoint a member of its management or one or more staff responsible for day-to-day implementation of the ESMS to have overall responsibility for environmental and social matters;

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PFI will prepare and submit to GAF biannual monitoring reports covering implementation of ADB safeguards policy.

(iii) Responsibilities of PMU GAF

Monitor the implementation and requirements of ADB safeguards policy and the required ESMS by PFIs;

Prepare and submit to ADB annual monitoring reports covering the implementation of ADB safeguards policy and social inclusiveness of the program

(iv) Responsibilities of ADB

Organize trainings for PFI to strengthen their capacity to manage environmental and social risks before first disbursement under the project;

Assist each PFI in reviewing first 3 environmental assessment documents for Category B projects;

Disclose Environmental Monitoring Reports on the ADB web-site. H. Safeguards monitoring:

11. ADB. ADB will supervise project performance against the commitments of the borrower, as described in the legal agreements. ADD will conduct regular safeguard supervision missions, review periodic safeguards monitoring reports submitted by PMU/GAF and disclose them on the ADB web-site. 12. PMU GAF. The PMU GAF will prepare and submit the annual safeguard monitoring report covering the implementation of the environment and social safeguards requirements to ADB by consolidation of semmianual report prepared by PFIs. 13. PFI. The PFI prepares and submit to PMU GAF semiannual monitoring reports covering implementation of the environmental and social safeguards. 14. SME. The SME prepares and submit for PFI review the environmental monitoring report for the category B projects.

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Annex 1

Subproject Screening Checklist Environmental and Social Impact Assessment Criteria

SCREENING QUESTIONS Yes No REMARKS

A. Compliance with laws and/or regulations (for existing SMEs) Is the subproject in breach of any applicable government environmental, health, safety or social laws or regulations?

B. ADB’s Prohibited Investment Activity List Is any of the project activities included in ADB’s list of prohibited investment activities in Appendix 1?

C. Subprojects with high adverse environmental impacts (Category A) Is the subproject proposed for financing included in the list (Appendix 2) of projects or activities which have high environmental and social risks?

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SCREENING QUESTIONS Yes No REMARKS

D. Potential Social Impacts Will the project:

Use land that has been acquired for State needs?

Result in the removal/displacement of renters/leaseholders or informal land-users (people without legal rights on the land/squatters)?

Cause people or any community to lose access to natural resources, traditional habitats, or communal facilities?

Will the subproject directly or indirectly affect ethnic minorities in the project area which (i) maintain collective attachment to distinct habitats or ancestral territories, (ii) speak a distinct language or dialect, and (iii) has been historically, socially and economically marginalized or discriminated against?

Will the credit loan be used for:

Buying the land, structures (business and residential)

Acquiring the assets/ or expansion of businesses which will result in the removal/ displacements of renters, leaseholders, formal and informal users of the assets

Acquiring the assets which will cause people or any particular community/ groups especially for ethnic minorities or the poor to lose access to: 1. natural resources, 2. traditional habitat, 3. customary activities, 4. communal facilities

Acquiring of assets./ or expansion of businesses which may facilitate/ increase the risk of: 1. Violation of the code labor standard, including use

child labor 2. Marginalization of the ethnic minority groups in the

project areas (related to their identity, dignity, livelihood system, cultural uniqueness)

3. Human trafficking

If Yes, go to the next question. If Yes, the project is ineligible for financing If Yes, ensure supporting documents available for willing seller & willing buyer transaction If Yes, exclude from financing If Yes, exclude from financing If Yes, exclude from financing

Notes: (i) The Remarks field can be used to comment on screening questions A, B, C, and D. Such comments can, for example,

refer to the availability of clearance, permits, or licenses currently being requested from the concerned local government agency, or clarify that SME is not substantially involved in production of or trade in alcoholic beverages, or inform that project is located at xx km distance from a specially protected area.

(ii) If the answer to questions A, B, C, and D is ―no‖, the PFI may proceed with assigning environmental category to a project. (iii) ―Subproject‖ in this checklist means the investment or economic activity of the SME Borrower for which an FI Loan is

provided.

Appendix 1 7

ADB PROHIBITED INVESTMENT ACTIVITIES LIST The following do not qualify for Asian Development Bank financing:

(i) production or activities involving harmful or exploitative forms of forced labor1 or child labor;2

(ii) production of or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements or subject to international phaseouts or bans, such as (a) pharmaceuticals,3 pesticides, and herbicides,4 (b) ozone-depleting substances,5 (c) polychlorinated biphenyls6 and other hazardous chemicals,7 (d) wildlife or wildlife products regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora,8 and (e) transboundary trade in waste or waste products;9

(iii) production of or trade in weapons and munitions, including paramilitary materials; (iv) production of or trade in alcoholic beverages, excluding beer and wine;10 (v) production of or trade in tobacco;10 (vi) gambling, casinos, and equivalent enterprises;10 (vii) production of or trade in radioactive materials,11 including nuclear reactors and

components thereof; (viii) production of, trade in, or use of unbonded asbestos fibers;12 (ix) commercial logging operations or the purchase of logging equipment for use in

primary tropical moist forests or old-growth forests; and (xi) marine and coastal fishing practices, such as large-scale pelagic drift net fishing

and fine mesh net fishing, harmful to vulnerable and protected species in large numbers and damaging to marine biodiversity and habitats

1 Forced labor means all work or services not voluntarily performed, that is, extracted from individuals under threat of

force or penalty. 2 Child labor means the employment of children whose age is below the host country’s statutory minimum age of

employment or employment of children in contravention of International Labor Organization Convention No. 138 ―Minimum Age Convention‖ (www.ilo.org).

3 A list of pharmaceutical products subject to phaseouts or bans is available at http://www.who.int

4 A list of pesticides and herbicides subject to phaseouts or bans is available at http://www.pic.int

5 A list of the chemical compounds that react with and deplete stratospheric ozone resulting in the widely publicized

ozone holes is listed in the Montreal Protocol, together with target reduction and phaseout dates. Information is available at http://www.unep.org/ozone/montreal.shtml

6 A group of highly toxic chemicals, polychlorinated biphenyls are likely to be found in oil-filled electrical

transformers, capacitors, and switchgear dating from 1950 to 1985. 7 A list of hazardous chemicals is available at http://www.pic.int

8 A list is available at http://www.cites.org

9 As defined by the Basel Convention; see http://www.basel.int

10 This does not apply to qualified SME borrowers who are not substantially involved in these activities. Not substantially involved means that the activity concerned is ancillary to a qualified SME borrower’s primary operations.

11 This does not apply to the purchase of medical equipment, quality control (measurement) equipment, and any equipment for which ADB considers the radioactive source to be trivial and adequately shielded.

12 This does not apply to the purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20%.

http://www.who.int/

http://www.pic.int/

http://www.unep.org/ozone/montreal.shtml

http://www.pic.int/

http://www.cites.org/

http://www.basel.int/

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Environmental and Social Risk Categorization List (based on EBRD Environmental and Social Risk Categorization List – Revised 2011)

Code NACE Rev. 2

Category and Subcategory

Risk Level

Notes

Environment and Health

& Safety Social/ Labour

Section A Agriculture, forestry and fishing

1 Crop and animal production, hunting and related service activities

1.1 Growing of non-perennial crops

Large-scale primary agriculture involving intensification or conversion of natural habitats

High High

Activities involving the release of genetically modified organisms (GMOs) into the natural environment, and trade in GMOs to be released into the environment

High or

Referral List Activity

High

1.15 Growing of tobacco Note: Production of or trade in tobacco do not qualify for ADB financing. This does not apply to project sponsors who are not substantially involved in these activities. Not substantially involved means that the activity concerned is ancillary to a project sponsor's primary operations.

Low PIAL

Medium PIAL

1.16 Growing of fibre crops (e.g. jute, flax, hemp, cotton) Low Medium/High May involve migrant/child/forced labour

1.19 Growing of other non-perennial crops, e.g. growing of flowers, flower seeds, production of cut flowers and flower buds, etc.

Low Medium/High

1.4 Animal products

Installations for the intensive rearing of poultry or pigs with more than 40.000 places for poultry; 2.000 places for production pigs (over 30kg); or 750 places for sows

High High

1.47 Raising of poultry Medium Low/Medium Depends on scale of the activity

Installations for the intensive rearing of poultry or pigs with more than 40.000 places for poultry; 2.000 places for production pigs (over 30 kg); or 750 places for sows

High High

1.49 Raising of other animals (example dogs & cats) Medium Low

1.6 Support activities to agriculture and post-harvest crop activities

1.7 Hunting, trapping and related service activities Medium Medium/High Ethical Issues e.g. The use of humane traps would lower the reputation risk

2 Forestry and logging

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Risk Level

Notes



2.1 Silviculture and other forestry activities High High Potential displacement of Indigenous people and forced labour issues

2.2 Logging High High Potential displacement of Indigenous people and forced labour issues

2.3 Gathering of wild growing non-wood products Low Medium/High Potential displacement of Indigenous people and forced labour issues

2.4 Support services to forestry Medium Medium/High Potential displacement of Indigenous people and forced labour issues

3 Fishing and aquaculture Applies to boat rather than fishing equipment

3.1 Fishing Location and depending on scale of species fished

3.11

Marine Fishing Medium Medium/High High risk where marine fishing involves fishing with trawlers and health and safety risks are significant

Marine and coastal fishing practices, such as large-scale pelagic drift net fishing and fine mesh net fishing, harmful to vulnerable and protected species in large numbers and damaging to marine biodiversity and habitats

PIAL PIAL

3.12 Freshwater Fishing Low Low/Medium

3.2 Aquaculture

SECTION B MINING AND QUARRYING

5 Mining of coal and lignite

5.1 Mining of hard coal High High

5.2 Mining of lignite High High

6 Extraction of crude petroleum and natural gas

6.1 Extraction of crude petroleum High High

6.2 Extraction of natural gas High High

7 Mining of metal ores

7.1 Mining of iron ores High High

7.2 Mining of non-ferrous metal ores High High

8 Other mining and quarrying

8.1 Quarrying of stone, sand and clay

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Code NACE Rev. 2


Risk Level

Notes



8.11 Quarrying of ornamental and building stone, limestone, gypsum, chalk and slate

High Medium/High

8.12 Operation of gravel and sand pits; mining of clays and kaolin High Medium/High

8.9 Mining and quarrying not elsewhere classified

8.91 Mining of chemical and fertiliser minerals High Medium/High

8.92 Extraction of peat High Medium/High

8.93 Extraction of salt High Medium/High

8.99 Other mining and quarrying n,e.c. (abrasive materials, asbestos, siliceous fossil meals, natural graphite, natural asphalt, natural solid bitumen)

High Medium/High

9 Mining support service activities

9.1 Support activities for petroleum and natural gas extraction High Medium

9.9 Support for other mining and quarrying, e.g. exploration service, geological observations, draining and pumping services

High Medium

SECTION C MANUFACTURING

10 Manufacture of food products Possible issues with migrant labour depending on location

10.1 Processing preserving of meat and production of meat products

10.11 Processing and preserving of meat Medium Medium/High There could be difficulty in attracting and retaining staff. Migrant and temporary labour is often used, possibility of poor training (H&S risk) and adverse terms and conditions of employment

10.12 Processing and preserving of poultry meat Medium Medium/High There could be difficulty in attracting and retaining staff. Migrant and temporary labour is often used, possibility of poor training (H&S risk) and adverse terms and conditions of employment

10.13 Production of meat and poultry meat products Medium Medium/High There could be difficulty in attracting and retaining staff. Migrant and temporary labour is often used, possibility of poor training (H&S risk) and adverse terms and conditions of employment

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Code NACE Rev. 2


Risk Level

Notes



11 Manufacture of beverages (distilled alcoholic beverages, wines cider and other fruit wines, beer malt, mineral waters and soft drinks)

Note: Production of or trade in alcoholic beverages, excluding beer and wine do not qualify for ADB financing. This does not apply to project sponsors who are not substantially involved in these activities. Not substantially involved means that the activity concerned is ancillary to a project sponsor's primary operations.

Medium Medium Depending on scale water use can be an issue for communities

12 Manufacture of tobacco products

Note: Production of or trade in tobacco do not qualify for ADB financing. This does not apply to project sponsors who are not substantially involved in these activities. Not substantially involved means that the activity concerned is ancillary to a project sponsor's primary operations.

Medium PIAL

Medium PIAL

13 Manufacture of textiles

13.1 Preparation of spinning of textile fibres Medium High Possible issues with working conditions, noise, depending on size and location and issues with forced or child labour

13.2 Weaving of textiles Medium High Possible issues with working conditions, noise, depending on size and location and issues with forced or child labour

13.3 Finishing of textiles Medium High Possible issues with working conditions, noise, depending on size and location and issues with forced or child labour

13.9 Manufacture of other textiles knitted and crocheted fabrics, made-up textile articles, except apparel, carpets and rugs, cordage, rope, twine and netting, non-wovens and articles made from non-wovens, except apparel, other textiles and industrial textiles

Medium High Possible issues with working conditions, noise, depending on size and location and issues with forced or child labour

14 Manufacturing of wearing apparel

14.1 Manufacture of wearing apparel, except fur apparel (leather clothes, workwear, outerwear, underwear, other wearing apparel and accessories)


14.2 Manufacture of articles of fur Medium High Possible issues with working conditions, noise, depending on size and location and issues

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Risk Level

Notes



with forced or child labour

14.3 Manufacture of knotted and crocheted apparel (knitted and crocheted hosiery, other knitted and crocheted apparel)


15 Manufacture of leather and related products

15.1 Tanning and dressing for leather, manufacture of luggage, handbags, saddlery and harness; dressing and dyeing of fur

High High Possible issues with working conditions, noise, depending on size and location and issues with forced or child labour

15.12 Manufacture of luggage, handbags and the like, saddlery and harness Medium High Possible issues with working conditions, noise, depending on size and location and issues with forced or child labour

15.2 Manufacture of footwear Medium High Possible issues with working conditions, noise, depending on size and location and issues with forced or child labour

17 Manufacture of paper and paper products

17.11 Manufacture of pulp High Medium

Industrial plants for the production of pulp from timber or similar fibrous materials

High Medium

Industrial plants for the production of paper and board with a production capacity exceeding 200 air-dried metric tonnes per day

High Medium

19 Manufacture of coke and refined petroleum products

19.1 Manufacture of coke oven products High High

19.2 Manufacture of refined petroleum products High High

Crude oil refineries (excluding undertakings manufacturing only lubricants from crude oil)

High High

Installations for the gasification and liquefaction of 500 tonnes or more of coal or bituminous shale per day

High High

Installation for storage of petroleum or petrochemical products with a capacity of 200.00 tonnes or more

High High

20 Manufacture of chemicals and chemical products

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Code NACE Rev. 2


Risk Level

Notes



20.1 Manufacture of basic chemicals, fertilisers and nitrogen compounds, plastics and synthetic rubber in primary forms (industrial gases, dyes and pigments, other inorganic and organic basic chemicals, fertilisers and nitrogen compounds, plastics in primary forms, synthetic rubber in primary forms)

High High

20.2 Manufacture of pesticides and other agrochemical products Note: production of or trade in some pesticides and herbicides do not qualify for ADB financing. For details please see Prohibited Investment Activities List.

High PIAL

High PIAL

20.3 Manufacture of paints, varnishes and similar coatings, printing ink and mastics

High High

20.4 Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations

High High

20.5 Manufacture of other chemical products (explosives, glues, essential oils, other chemical products)

High High

20.6 Manufacture of man-made fibres High High

21 Manufacture of basic pharmaceutical products and pharmaceutical preparations – medicinal active substances to be

used for their pharmacological properties in the manufacture of medicaments: antibiotics, basic vitamins, salicylic and O-acetylsalicylic acids. Also includes processing of blood, manufacture of medicaments such as vaccines, antisera and other blood fractions, diverse medicaments, homeopathic preparations, chemical contraceptive products for external use and hormonal contraceptive medicaments, medical diagnostic preparations, including pregnancy tests, radioactive in-vivo diagnostic substances, biotech pharmaceuticals.

High Low/Medium

22 Manufacture of rubber and plastic products

22.1 Manufacture of rubber products

22.11 Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres

High Medium

23 Manufacture of other non-metallic mineral products

23.5 Manufacture of cement, lime and plaster High Medium

24 Manufacture of basic metals

24.1 Manufacture of basic iron and steel and of ferro-alloys High Medium/High

24.2 Manufacture of tubes, pipes, hollow profiles and related fittings, of steel

High Medium/High

24.3 Manufacture of other products and first processing of steel High Medium/High

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Risk Level

Notes



24.4 Manufacture of basic precious and other non-ferrous metals (e.g. aluminium, lead, zinc and tin, copper etc.)

High Medium/High

24.46 Processing of nuclear fuel Note: Production of or trade in radioactive materials (this does not apply to the purchase of medical equipment, quality control (measurement) equipment, and any equipment for which ADB considers the radioactive source to be trivial and adequately shielded) including nuclear reactors and components thereof - Secure management of radioactive waste and spent nuclear fuels; - Decommissioning.

High or


High or


24.5 Casting of metals (iron, steel, light metals, non-ferrous metals) High Medium/High

25 Manufacture of fabricated metal products, except machinery and equipment

25.4 Manufacture of weapons and ammunition (heavy weapons, small arms, air and gas guns, and war ammunition and explosive devices. This class also includes hunting, sporting or protective firearms and ammunition) Note: production of or trade in weapons and munitions, including paramilitary materials does not qualify for ADB financing.

Medium PIAL

Low PIAL

25.5 Forging, pressing, stamping and roll-forming of metal; powder metallurgy

Medium Low

25.6 Treatment and coating of metals; machining

25.61 Treatment and coating of metals High Low

25.62 Machining, incl. boring, turning, milling, planing, broaching, levelling, sawing, grinding, sharpening, polishing, welding, splicing etc. of metalwork pieces

Medium Low

25.7 Manufacture of cutlery, tools and general hardware

25.71 Manufacture of cutlery Medium Low

25.72 Manufacture of locks and hinges Medium Low

25.73 Manufacture of tools (non-power-driven) Medium Low

25.9 Manufacture of other fabricated metal products Medium Low

26 Manufacture of computer, electronic and optical products

26.1 Manufacture of electronic components and boards Medium Low

26.2 Manufacture of computers and peripheral equipment Medium Low

26.3 Manufacture of communication equipment Medium Low

26.4 Manufacture of consumer electronics Medium Low

26.5 Manufacture of instruments and appliances for measuring, testing and navigation; watches and clocks

Medium Low

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Code NACE Rev. 2


Risk Level

Notes



26.6 Manufacture of irradiation, electromedical and electrotherapeutic equipment

Medium Low

26.7 Manufacture of optical instruments and photographic equipment Medium Low

26.8 Manufacture of magnetic and optical media Medium Low

27 Manufacture of electrical equipment

27.1 Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus Note: Production of or trade in any product or activity related to polychlorinated biphenyls (PCBs) do not qualify for ADB financing (PCBs are a group of highly toxic chemicals, polychlorinated biphenyls are likely to be found in oil-filled electrical transformers, capacitors, and switchgear dating from 1950 to 1985).

Medium or

PIAL

Medium or

PIAL

27.2 Manufacture of batteries and accumulators High Low

27.3 Manufacture of wiring and wiring devices (electronic and electric wires and cables, current-carrying and noncurrent-carrying wiring devices for electrical circuits regardless of material)

Medium Low

27.4 Manufacture of electric lighting equipment ( electric light bulbs and tubes and parts and components, electric lighting fixtures and lighting fixture components)

Medium Low

27.5 Manufacture of domestic appliances (domestic appliances with electric, gas or other fuel sources)

Medium Low

27.9 Manufacture of other electrical equipment Medium Low

28 Manufacture of machinery and equipment not elsewhere classified

28.1 Manufacture of general – purpose machinery Medium Low

28.2 Manufacture of other general purpose machinery

28.21 Manufacture of ovens, furnaces and furnace burners Medium Low

28.22 Manufacture of lifting and handling equipment Medium Low

28.23 Manufacture of office machinery and equipment (except computers and peripheral equipment)

Medium Low

28.24 Manufacture of power-driven hand tools Medium Low

28.25 Manufacture of non-domestic cooling and ventilation equipment (Note: Production of or trade in any product or activity related to ozone-depleting substances do not qualify for ADB financing (A list of the chemical compounds that react with and deplete stratospheric ozone resulting in the widely publicized ozone holes is listed in the Montreal Protocol, together with target reduction and phaseout dates. Information is available at http://www.unep.org/ozone/montreal.shtml )

Medium or

PIAL

Low or

PIAL

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Risk Level

Notes



28.29 Manufacture of other general-purpose machinery not elsewhere classified

Medium Low

28.3 Manufacture of agricultural forestry machinery Medium Low

28.4 Manufacture of metal forming machinery and machine tools Medium Low

28.9 Manufacture of other special purpose machinery Medium Low

29 Manufacture of motor vehicles, trailers and semi-trailers

29.1 Manufacture of motor vehicles Medium Low

29.2 Manufacture of bodies (coachwork) for motor vehicles; manufacture of trailers and semi-trailers

Medium Low

29.3 Manufacture of parts and accessories for motor vehicles Medium Low

30 Manufacture of other transport equipment

30.1 Building of ships and boats

30.11 Building of ships and floating structures High Low

30.12 Building of pleasure and sporting boats Medium Low

30.2 Manufacture of railway locomotives and rolling stock High Low

30.3 Manufacture of air and spacecraft and related machinery High Low

30.4 Manufacture of military fighting vehicles Note: Production of or trade in products or activities related to weapons and munitions, including paramilitary materials do not qualify for ADB financing.

High PIAL

Low PIAL

30.9 Manufacture of transport equipment n.e.c. (motorcycles, bicycles and invalid carriages, other transport equipment n.e.c. - luggage trucks, sledges, shopping carts etc.)

Medium Low

31 Manufacture of furniture Medium Low

32 Other Manufacturing

32.1 Manufacturing of jewellery, bijouteries and related articles Medium Low

32.2 Manufacture of musical instruments Medium Low

32.3 Manufacture of sports goods Medium Low

32.4 Manufacture of games and toys Medium Low

32.5 Manufacture of medical and dental instruments and supplies Medium Low

32.9 Other manufacturing nec. (brooms and brushes, protective safety equipment and clothing, pens and pencils, stamps, labels, buttons, articles of personal or household use, candles, artificial flowers, fruit and foliage, floral baskets, etc.)

Medium Low

33 Repair and installation of machinery and equipment

33.1 Repair of fabricated metal products, machinery and equipment Medium Low

33.2 Installation of industrial machinery and equipment Medium Low

SECTION D ELECRICTIY, GAS, STEAM AND AIR CONDITIONING SUPPLY

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35 Electricity, gas steam and air conditioning supply

35.1 Electric power generations, transmission and distribution High High Possible issues with land acquisition/rental

35.2 Manufacture of gas; distribution of gaseous fuels through mains High High Possible issues with land acquisition/rental

35.3 Steam and air conditioning supply Low Low

SECTION E WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES

36 Water collection, treatment and supply Medium Medium

37 Sewerage High High

38 Waste collection, treatment and disposal activities; materials recovery

38.1 Waste collection

38.11 Collection of non-hazardous waste High High Possible issues with child labour in these sub-sectrs, potential issues with migrant labour and low-skilled labour

38.12 Collection of hazardous waste High High Possible issues with child labour in these sub-sectrs

38.2 Waste treatment and disposal

38.21 Treatment and disposal of non-hazardous waste High High

38.22 Treatment and disposal of hazardous waste High High

38.3 Materials recovery High High

39 Remediation activities and other waste management services High High

SECTION F CONSTRUCTION

41 Construction of buildings

41.1 Development of building projects Low High Potential issues with forced/migrant labour and low-skilled labour

41.2 Construction of residential and non-residential buildings Medium High Potential issues with forced/migrant labour and low-skilled labour

42 Civil engineering

42.1 Construction of roads and railways High High Potential issues with forced/migrant labour and low-skilled labour

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Construction of motorways, express roads and lines for long-distance railway traffic and of airports with a basic runway length of 2.100 metres or more; construction of a new road of four or more lanes, or realignment and/or widening of an existing road so as to provide four or more lanes, where such new road, or realigned and/or widened section of road would be 10 km or more in a continuous length

High High

42.2 Construction of utility projects (for fluids, electricity and telecommunications)

High High Potential issues with forced/migrant labour and low-skilled labour

42.9 Construction of other civil engineering projects (water projects, industrial facilities)

Medium High Potential issues with forced/migrant labour and low-skilled labour

43 Specialised construction activities

43.1 Demolition and site preparation (demolition, site preparation, test drilling and boring)

Low High Potential issues with forced/migrant labour and low-skilled labour

43.2 Electrical, plumbing and other construction installation activities Low Low

43.3 Building completion and finishing (plastering; joinery installation; floor and wall covering ; painting and glazing; other building completion and finishing)

Low Low

43.9 Other specialised construction activities Medium Low

SECTION G WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES

45 Wholesale and retail trade and repair of motor vehicles and motorcycles

45.1 Sale of motor cycles Low Low

45.2 Maintenance and repair of motor vehicles Medium Low

45.3 Sale of motor vehicle parts and accessories Low Low

45.4 Sale, maintenance and repair of motorcycles and related parts and accessories

Medium Low

46 Wholesale trade, except of motor vehicles and motorcycles

46.1 Wholesale on a fee or contract basis Low Low

46.2 Wholesale of agricultural raw materials and live animals

46.21 Wholesale of grain, unmanufactured tobacco, seed and animal feeds. Note: Production of or trade in tobacco do not qualify for ADB financing. This does not apply to project sponsors who are not substantially involved in these activities. Not substantially involved means that the activity concerned is ancillary to a project sponsor's

Low or

PIAL

Low or

PIAL

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primary operations.

Activities involving the release of genetically modified organisms (GMOs) into the natural environment, and trade in GMOs to be released into the environment

High or


High or


46.22 Wholesale of flowers and plants Low Low

46.23 Wholesale of live animals Medium Low

Trade in wildlife products regulated under CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora. A list of CITES listed species is available from the ADB)

High PIAL

High PIAL

46.24 Wholesale of hides, skins and leather Medium Low

Trade in wildlife products regulated under CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora. A list of CITES listed species is available from the ADB)

High PIAL

High PIAL

46.3 Wholesale of food, beverages and tobacco Low Low

46.4 Wholesale of Household goods Low Low

46.5 Wholesale of information and communication equipment Low Low

46.6 Wholesale of other machinery, equipment and supplies Low Low

46.7 Other specialised wholesale Low Low

47 Retail trade, except of motor vehicles and motorcycles (note: low

risk level applies to all retail trading activities except for 47.3) Low Low

47.3 Retail sale of automotive fuel in specialised stores High Low

SECTION H TRANSPORTATION AND STORAGE

49 Land transport and transport via pipelines

49.1 Passenger rail transport, interurban Low Low

49.2 Freight rail transport Low Medium

49.3 Other passenger land transport Low Low

49.4 Freight transport by road and removal services Low Medium

49.5 Transport via pipeline High Low

Pipelines, terminals, and associated facilities for the large-scale transport of gas, oil and chemicals

High High

50 Water transport

50.1 Sea and coastal passenger and freight transport Medium Low Potential issues with workers on ships and overcrowding

50.2 Sea and coastal freight water transport Medium Medium Potential issues with workers on ships and overcrowding

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Sea ports and also inland waterways and ports for inland-waterway traffic which permit the passage of vessels of over 1.350 tonnes; trading ports, piers for loading and unloading connected to land and outside ports (excluding ferry piers) which can take vessels of over 1.350 tonnes

High High

Shipment of oil or other hazardous substances in tankers which do not comply with IMO requirements. This includes: tankers which do not have all required MARPOL SOLAS certificates (including, without limitation, ISM Code compliance), tankers blacklisted by the European Union or banned by the Paris Memorandum of Understanding on Port State Control (Paris MOU) and tankers due for phase out under MARPOL regulation 13G. No single hull tanker over 25 years old should be used

High PIAL

High PIAL

50.3 Inland passenger water transport Medium Low

50.4 Inland freight water transport Medium Medium Potential issues with workers on ships and overcrowding

51 Air Transport

51.1 Passenger air transport Medium Medium

51.2 Freight air transport and space transport

51.21 Freight air transport Medium Medium

51.22 Space transport High Low

52 Warehousing and support activities for transportation Low Low

53 Postal and courier activities Low Low

SECTION I ACCOMMODATION AND FOOD SERVICE ACTIVITIES

55 Accommodation (Hotels) Low Medium/High Possible issues with illegal labour

56 Food and beverage service activities (restaurants and bars) Low Medium/High Possible issues with illegal labour

SECTION J INFORMATION AND COMMUNICATION

58 Publishing activities Low Low

59 Motion picture, video and television programme production, sound recording and music publishing activities

Low Low

60 Programming and broadcasting activities Low Low

61 Telecommunications Low Low

62 Computer programming, consultancy and related activities Low Low

63 Information service activities Low Low

SECTION K FINANCIAL AND INSURANCE ACTIVITIES

64 Financial service activities, except insurance and pension funding

Low Low

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65 Insurance, reinsurance and pension funding, except compulsory social security

Low Low

66 Activities auxiliary to financial services and insurance activities Low Low

SECTION L REAL ESTATE ACTIVITIES

68 Real estate activities Low High

SECTION M PROFESSIONAL SCIENTIFIC AND TECHNICAL ACTIVITIES

69 Legal and accounting activities Low Low

70 Activities of head offices; management consultancy activities Low Low

71 Architectural and engineering activities; technical testing and analysis

Low Low

72 Scientific research and development Low Low

73 Advertising and market research Low Low

74 Other professional, scientific and technical activities Low Low

75 Veterinary activities Low Low

SECTION N ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES

77 Rental and leasing activities

77.1 Renting and leasing of motor vehicles

77.11 Renting and leasing of cars and light motor vehicles Low Low

77.12 Renting and leasing of trucks Low/Medium Low

77.2 Renting and leasing of personal and household goods

77.21 Renting and leasing of recreational and sports goods Low Low

77.22 Renting of video tapes and disks Low Low

77.29 Renting and leasing of other personal and household goods Low Low

77.3 Renting and Leasing of other machinery, equipment and tangible goods

77.31 Renting and leasing of agricultural machinery and equipment Low/Medium Low

77.32 Renting and leasing of construction and civil engineering machinery and equipment

Low/Medium Low

77.33 Renting and leasing of office machinery and equipment (including computers)

Low Low

77.34 Renting and leasing of water transport equipment Medium Low

77.35 Renting and leasing of air transport equipment Medium Low

77.39 Renting and leasing of other machinery, equipment and tangible goods not elsewhere classified

Low Low

77.4 Leasing of intellectual property and similar products, except copy-righted works

Low Low

78 Employment activities

78.1 Activities of employment placement agencies Low/Medium Medium

78.2 Temporary employment agencies Low/Medium Medium

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78.3 Other human resources provision Low/Medium Medium

79 Travel agency, tour operator reservation service and related activities

79.1 Travel agency and tour operator activities Low Medium

79.9 Other reservation service and related activities Low Medium

80 Security and investigation activities

80.1 Private security activities Medium Low/Medium

80.2 Security systems service activities Low Low/Medium

80.3 Investigation activities Low Low/Medium

81 Services to buildings and landscape activities

81.1 Combined facilities support activities Low Low

81.2 Cleaning activities

81.21 General Cleaning of buildings Low Medium/High Possible issues with illegal labour

81.22 Other buildings and industrial cleaning activities Low Medium Possible issues with illegal labour

81.29 Other cleaning activities Low Medium Possible issues with illegal labour

81.3 Landscape service activities Low Low

82 Office administrative, office support and other business support activities

82.1 Office administrative and support activities

82.11 Combined office administrative service activities Low Low

82.19 Photocopying, document preparation and other specialised office support activities

Low Low

82.2 Activities of call centres Low Low

82.3 Organisation of conventions and trade shows Low Low

82.9 Business support service activities not elsewhere classified

82.91 Activities of collection agencies and credit bureaus Medium/High Medium

82.92 Packaging activities Medium Low

82.99 Other business support service activities not elsewhere classified Low Low

SECTION O PUBLIC ADMINSITRATION AND DEFENCE COMPULSORY SOCIAL SECUITY

84 Public administration and defence; compulsory and social security

Low Low

SECTION P EDUCATION

85 Education Low Low

SECTION Q HUMAN HEALTH AND SOCIAL WORK ACTIVITIES

86 Human health activities Low Low

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87 Residential care activities Low Low/Medium

88 Other residential care activities Low Low/Medium

SECTION R ARTS, ENTERTAINMENT AND RECREATION

90 Creative, arts and entertainment activities Low Low

91 Libraries, archives, museums and other cultural activities Low Low

92 Gambling and betting activities

Note: Gambling, casinos, and equivalent enterprises do not qualify for ADB financing.

Low PIAL

Low PIAL

93 Sports activities and amusement and recreation activities Low Low

SECTION S OTHER SERVICE ACTIVITIES

94 Activities of membership organisations Low Low

95 Repair of computers and personal and household goods Low Low

96 Other personal service activities Low Low

SECTION T ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS; UNDIFFERENTIALED GOODS AND SERVICES PRODUCING ACTIVITIES OF HOUSEHOLDS FOR OWN USE

97 Activities of households as employers of domestic personnel Low Low

98 Undifferentiated goods – and services – producing activities of private households for own use

Low Low

99 Activities of extraterritorial organisations and bodies, e.g. diplomatic and consular missions, international organisations, etc.

Low Low

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OUTLINE OF AN ENVIRONMENTAL ASSESSMENT REPORT AND ENVIRONMENTAL MITIGATION PLAN

1. An environmental assessment report is required for all environment category B projects. Its level of detail and comprehensiveness is commensurate with the significance of potential environmental impacts and risks. A typical environmental assessment report contains the following elements reflected below. The substantive aspects of this outline will guide the preparation of environmental assessment reports, although not necessarily in the order shown.

A. Description of the Project

2. This section describes the proposed project; its major components; and its geographic, ecological, social, and temporal context.

B. Description of the Environment (Baseline Data)

3. This section describes relevant physical, biological, and socioeconomic conditions within the study area.

C. Anticipated Environmental Impacts and Mitigation Measures

4. This section predicts and assesses the project's likely positive and negative direct and indirect impacts to physical, biological, socioeconomic environment in the project's area of influence, and identifies mitigation measures.

D. Analysis of Alternatives

5. This section examines alternatives to the proposed project site, technology, design, and operation—including the no project alternative.

E. Information Disclosure, Consultation, and Participation

6. This section: (i) describes the process undertaken during project design and preparation for

engaging stakeholders, including information disclosure and consultation with affected people and other stakeholders;

(ii) summarizes comments and concerns received from affected people and other stakeholders and how these comments have been addressed in project design and mitigation measures; and

(iii) describes the planned information disclosure measures and the process for carrying out consultation with affected people and facilitating their participation during project implementation.

F. Environmental Management Plan

7. This section deals with the set of mitigation and management measures to be taken during project implementation to avoid, reduce, mitigate, or compensate for adverse environmental impacts.

G. Conclusion and Recommendation

8. This section provides the conclusions drawn from the assessment and provides recommendations.

ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM ... - ADB

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