POWERSECTORRECOVERYPERFORMANCEBASEDLOAN

NigeriaProgramforResults(PforR)Operation

EnvironmentalandSocialSystemsAssessment(ESSA)

AbujaJanuary25,2018

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RECAP:WBProgramforResults(PforR)keyfeatures

§ Financesandsupportsgovernments’programsofexpenditures,usingprogramsystems

§ Disbursesuponachievementofprogramresults,notinputs

§ Focusesonstrengtheningtheinstitutionalcapacityneededforprogramstoachievetheirdesiredresults

§ Activitieslikelytohavesignificantadverseimpactsthataresensitive,diverseorunprecedentedontheenvironmentand/oraffectedpeoplearenoteligibleandexcludedfromtheProgram.

ØTheBankwillconductanEnvironmentalandSocialSystemsAssessment(ESSA)

Program-for-Results(PforR):Keyfeatures

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• Ensure consistency with E&S Core Principles• Identify E&S issues and highlight risks to

management• Assess Borrower’s systems, capacity and

performance• Identify measures/actions to enhance E&S

management capacity and performance• Stakeholder participation, accountability and

consultation• Establish monitorable indicators to assess

performance on a regular basis through the Program Action Plan.

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What is an ESSA?

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Core PrinciplesEnvironmental Aspects

1. Promote environmental and

social sustainability, avoid, minimize, mitigate adverse

impacts and promote informed-decision

making

2. Avoid, minimize and mitigate against adverse

impacts on natural habitats and physical

cultural resources

3. Protect public and workers against

potential risks associated with (a) construction and/or

operations of facilities; (b) exposure to toxic

chemicals, hazardous wastes and dangerous

materials; and (c) reconstruction or rehabilitation of

infrastructure in areas prone to natural

disasters

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Core PrinciplesSocial Aspects

4. Avoids or minimize displacement due to land acquisition or

restriction of access to natural resources and PAPs are assisted in improving/restoring

livelihoods and living standards

5. Cultural appropriateness of, and

equitable access to, program benefits--

giving special attention to Indigenous Peoples

and vulnerable groups.

6. Avoid exacerbating social conflict,

especially in fragile states, post-conflict

areas, or areas subject to territorial disputes.

ESSA: Roles and Responsibilities

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Program Phase Borrower WB Task Team

Identification

§ Provide input to WB for risk screening and systems assessment

§ Screen for E/S impacts and support in define of program boundaries

§ Identify stakeholders to consult

Assessment

§ Identify and document potential E&S effects and how the system handles them

§ Facilitate consultation

§ Draft ESSA § Conduct consultations§ Disclose ESSA (before

appraisal)

Appraisal

§ Collaborate with task team to finalize systems assessment

§ Consult on draft ESSA§ Finalize assessment§ Agree on enhancement

actions

PowerSectorRecoveryProgram(PSRP)

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ProgramforResults(PforR)

PowerSectorRecoveryProgram(PSRP)

ProgramDevelopmentObjective:• ToenhancethereliabilityofelectricitysupplyforNigerianconsumersandeconomyandimprovepowersectorfinancialviabilityandefficiency.

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PotentialEnvironmentalandSocialImpacts

PotentialEnvironmentandSocialImpactsImpactsChart

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PotentialEnvironmentandSocialImpacts

• Improvedairqualityandreductioninpollutantandgreenhousegasemissionasaresultofreductionintheuseofgeneratorsbybusinessesandhouseholds.

• Reducedshareofpoorhouseholdsusingfirewoodandcharcoalforcooking,whichleadstodeforestationwhichisoneofthecontributingfactorstoclimatechange.

• Reduceduseofbasichouseholdfuelssuchascandlesandkerosene,whichmaybeharmfultotheenvironment.

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AssessmentofBorrower’sSystems,CapacityandPerformance

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PerformanceandInstitutionalCapacityAssessmentCorePrinciple1:EnvironmentalandSocialManagement• STRENGTHS• Nationalpolicies,regulationandotherlegislationforenvironmentalmanagementarewelldefined.

• ThenationalEIAsystem(EIAActNo.86of1992)providesacomprehensivelegalandregulatoryframeworkforenvironmentalandsocialimpactassessmentthatisbroadlyconsistentwiththeCorePrinciple1oftheBankPolicyandDirective.

• TheEnvironmentalGuidelinesandStandardsforRegulatingtheOilandGasIndustryinNigeria(EGASPIN)alsoprovidestheguidelinesforenvironmentalissuesrelatingtooilandgasactivitiesinNigeria.

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PerformanceandInstitutionalCapacityAssessmentCorePrinciple1:EnvironmentalandSocialManagement• STRENGTHS• GoodgrievancemechanismsbyNERCcallcentresestablishedforcustomercomplaints,readilyavailablewebsitewithinstructionsofhowtomakeacomplaint

• Demonstratedeffortstoincreasestakeholderengagementbothwithinthegovernmentandforcivilsocietyatcharge

• NationalGenderandEnergyPoliciesstrivetomainstreamgenderwithinthepowersectoratalllevelsofoperationanddelivery

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PerformanceandInstitutionalCapacityAssessmentCorePrinciple1:EnvironmentalandSocialManagement• GAPS• Weakenforcementcapacityisamajorconcern.• Theimplementationoftheexistinglegal/regulatoryprovisionsfaceschallenges,suchasmultipleregulations;overstretchedregulatoryauthorities,weakmonitoring;inadequateandmismanagedfunding;andalowdegreeofpublicawarenessofenvironmentalissues

• WeakgovernancesystemsofDISCOshinderdeliveryofpolicies• Lackofmandate,termsofreferenceandstrategyforgenderdeskinMinistryofPowerhinderseffectivenessofgendermainstreaming

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PerformanceandInstitutionalCapacityAssessmentCorePrinciple2:NaturalHabitatsandPhysicalCulturalResourcesNotApplicable

• ItisnotexpectedthatthePforRareaswillhaveadverseimpactonnaturalhabitatsandphysicalculturalresourcessinceitdoesnotinvolveneworupgradedinfrastructure.

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PerformanceandInstitutionalCapacityAssessment• CorePrinciple3:PublicandWorkerSafety• STRENGTHS

• Thelegal/regulatorysystemofthecountryincludesprovisionsforprotectingpeopleandenvironmentthatisapplicabletoregulatinghazardousmaterials.

• Therearenationalpoliciesandguidelinesaddressingpublicandworkers’safetyforexamplethecompulsoryinsurancepolicy.

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PerformanceandInstitutionalCapacityAssessment• CorePrinciple3:PublicandWorkerSafety• GAPS

• ThenationalEIAsystemisweakanddoesnotcomprehensivelyencompassaspectsofpublicandworkers’safety.

• Thereisgenerallackofawarenessonpublichealthandsafetyissues,particularlyinrelationtoexposuretohazardousmaterials,andworkplacesafetyaspects.

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PerformanceandInstitutionalCapacityAssessmentCorePrinciple4:LandAcquisitionNotApplicable

NolandacquisitionasTheProgramitdoesnotinvolveconstructionofnewpowerplants.

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PerformanceandInstitutionalCapacityAssessmentCorePrinciple5:VulnerableGroupsSystemStrengths• PartVI- ConsumerProtectionandLicenseePerformanceStandards- ofTheElectricPowerSectorReformAct(2005)stipulatesthattherewillbespecialcodesofpracticefortheprovisionofassistancetospecialneedscustomerssuchasthepeoplewithdisabilities,theelderlyorseverelyill.Additionally,theActdescribesproceduresfordealingwithandassistingcustomerswhohavedifficultyinpayingbills.

• PartVIII– ThePowerConsumerAssistanceFund– ofTheElectricPowerSectorReformAct(2005)- requiresNERCtosetupandadministerafundwhichwill,amongothers,beusedtosubsidiesunderprivilegedpowerconsumers.

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PerformanceandInstitutionalCapacityAssessmentCorePrinciple5:VulnerableGroupsGaps

• PooruptakebyNERCofthePowerConsumerAssistanceFundandotheragenciesinaccordancewiththePowerSectorReformAct

• Poorknowledge/understandingofhowtooperationalisethefundandtomonitorprogress

• Lackofdataonconsumers’vulnerabilityprofile(e.g.incomelevels,accesstoelectricity).

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PerformanceandInstitutionalCapacityAssessmentCorePrinciple6:SocialConflictSystemStrengths• NigeriaFederalandStatepresenceisstrongthroughoutthecountrywithwell-trainedpoliceandsecurityforceswhomaintaintheruleoflaw.

• ThereareFederalandstatelevelagenciesandministrieswithmandatestoaddressconflict.

• Stateswhicharemoreconflictpronereceiveproportionatelymoreresourcestotackleconflict

GapsWeaknessofgrievanceredresssystemandlackoftransparencyoftariffreformhasattimesledtodemonstrationsandallegationsofsocialconflictandconflictoverconsumers’refusaltopayenergybills

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ProposedActionstoEnhanceE&SManagementCapacityandPerformance

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ProposedProgramActionPlantoEnhanceE&SPerformance

• Gender:ToachievethePRSP’sgovernanceobjectivesinrelationtogenderandMoP’sgenderandenergypolicygoalsstrengthenthemandateofthegenderfocalpointintheMinistryofPowerbydevelopingaworkplanandclearlinesofresponsibilityforthegenderdesk/focalpointintheMinistryofPower.

• StakeholderandCitizenEngagement:• Buildoncurrentsystem.DevelopcleartargetsandmonitoringcriteriaforNERC’scustomercomplaintssystem.

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ProposedProgramActionPlantoEnhanceE&SPerformance(Continued)

• Tostrengthencapacityandrepresentativesofconsumerorganizations– develop‘outreach‘program/strategyfortheseGroups

• Formulateguidelinesandmanualsformainstreamingstakeholderengagementprocess,andenvironmental,healthandsafetyissuesintotheimplementationoftheProgram

• Conductannualmonitoringofprogressonenvironmentalandsocialissues,especiallyregardingthecomplianceoftheProgramactivitieswiththeenvironmentalstandardsandregulations

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