The African Development Bank
description
Transcript of The African Development Bank
The African Development Bank
Role of ADBin Mainstreaming Disaster Risk Reduction into Development
Programmes
Vasantt Jogoo Principal Environmentalist
02-03 June 2004Johannesburg, RSA
The African Development Bank is the premier financial development institution of Africa, dedicated to combating poverty and improving the lives of people of the continent and engaged in the task of mobilizing resources towards the economic and social progress of its Regional Member Countries
The African Development Bank Group
Constituent Institutions:
The African Development Bank (ADB)
The African Development Fund (ADF)
The Nigeria Trust Fund (NTF)
Shareholders:
53 African countries
24 non-African countries
Authorized Capital at 31 Dec 2001 UA 21.87 billion
Subscribed Capital at 31 Dec 2001 UA 21.49 billion
The African Development Bank Group
The Development Challenge“poorest continent despite being one
of the most richly endowed”
• Declining agricultural and industrial productivity
• Increasing environmental degradation
• High level of debt• Civil unrest and conflicts• Collapsing infrastructure….
The African Development Bank
Development Opportunities• Greater political commitment• Commitment to peace, democracy • Greater need for cooperation• Improved environmental
governance• Growing role of private sector• New opportunities for industrial
development• Globalization and GPG…
The African Development Bank
Bank’s Strategic Focus
•at the country level, three broad sectoral themes, namely agriculture and rural development, human resource development and private sector development •one generic theme, governance •at the regional/continental level, economic integration and co-operation; and two cross-cutting issues: environment and gender
The African Development Bank
African Development Bank Group Approvals and Disbursements,1989-2002 (in US$ millions)
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APPROVALS DISBURSEMENTS NUMBER
Approved Operations in 2001
•134 approved operations, total UA2.37 billion (UA1.17 billion in 2003): UA 1.38 billion from ADF; UA 986.7 million from ADB; UA 5.1 million from NTF
•Major Sector Approvals:
Agriculture & Rural Development: UA 268.5 million or 15.3 % of total
Social Sector: UA 198.2 million or 11.3 % of total
Multisector: UA 410.8 million or 23.5 % of total (mostly economic reform programs and good governance promotion)
HIPC Debt Relief Approvals 2001 UA 611.2 million
The African Development Bank Group
ADB’s Response to Environmental Sustainability Challenge
• Clear vision of Sustainability• Appropriate Institutional Structure• Effective Integration of ES Objectives
in Policies and Programmes• Incorporation of ES Objectives within
Projects• Independent In-House Review
Mechanism• Areas of Improvement Identified
The African Development Bank
SustainableDevelopm ent &
Poverty ReductionUnit
Procurem entUnit
Developm entResearch
Statistics
AfricanDevelopm ent
Institute
Developm entResearch
(Chief Econom ist)
StrategicPlanning
Program m ing& Budgeting
Partnership& Cooperation
Planningand
Budgeting
OperationsPolic ies
& Procedures
Perform anceReview
FinancialGovernance
OperationsPolic ies
& Review
Vice PresidentPlanning,
Policy, andResearch
Vice Presidency Policy, Planning and Research (PRVP)
Safeguard Policies, Procedures and Guidelines
• Policy on Environment (new Policy under preparation)
• Environmental and Social Assessment Procedures (2001)
• Integrated • Strategic Impact Assessment (under preparation)• Environmental and Social Auditing Guidelines (2001)• Policy on Involuntary Resettlement
The African Development Bank
New Environment Policy
• Goals: Improve overall quality of Life and Preserve/Enhance ecological capital
• Objectives: Promote Long-term view of Development; enhance regenerative capacity of ecological capital; reverse impoverishment process; help RMCs build capacity; strengthen partnership…
The African Development Bank
Key Principles
A strong and diversified economy shall be recognized as a just means to enhance the capacity for environmental protection;
Environmental management tools, like environmental assessments, shall systematically be used to ensure that economic activities are environmentally sustainable, and to systematically monitor their environmental performance.
Community involvement, specifically including women, in natural resource management decisions that affect the most marginalized and vulnerable groups shall be provided for;
Transparency, accountability of governance structures and institutions, which are more responsive to the needs and priorities of affected communities in general, and poor people, women, and vulnerable groups in particular, shall be encouraged.
Policy Interventions“cross-sectoral Approach”
• Reversing land degradation and desertification
• Protecting the coastal zone• Protecting GPG while preserving
biodiversity and forests• Improving public health• Enhancing disaster management
capabilities
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Policy Interventions cont’d
• Promoting Sustainable Industry, Mining…
• Increasing Awareness, Institution and Capacity Building
• Improve Environmental Governance
• Urban Development and Population growth
• Greater role for CSO
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• To improve decision making and to ensure that the projects under consideration are environmentally and socially sound and sustainable.
• Environmental and social consequences should be recognized early in the project cycle
• ESA helps to identify ways to improve a project environmentally and socially by preventing, minimizing, mitigating, or compensating for adverse impacts.
• ESA also plays an important role in building the environmental and social management capacity of the project sponsor.
Purpose and Nature of Environmental &
Social Impact Assessment (ESIA)
The African Development Bank
• Category 1: A proposed project is likely to have significant adverse impacts.
• Category 2 : A proposed project is classified as Category 2 if its potential adverse environmental impacts are predictable and manageable.
• Category 3: A proposed project is classified as Category 3 if there are no adverse environmental impacts. Beyond screening, no further EA action is required for a Category 3 project.
Project Screening
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Category 4:
• A proposed project is categorized as Category 4 if it involves investment of
Bank funds through a financial intermediary
• The FIs on-lends to small and medium size enterprises which may include
banks, insurance and leasing companies,investment funds, etc.
• The Bank needs to ensure the proper implementation of its environmental mandate in its FI operations while respecting the principle of delegated responsibility, which characterises such operations
Financial Intermediaries (Category 4)
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• Private sector projects financed by the Bank must comply with applicable Bank’s environmental and social policies.
• In sectors where no appropriate policies or guidelines exist, Bank applies relevant internationally recognised standards.
• The project sponsor must ensure compliance
with host country requirements.
ADB’s Environmental Review Procedures for Private Sector Operations
The African Development Bank
The Harmonization Process
• Managed by Multilateral Financial Institutions Working Managed by Multilateral Financial Institutions Working Group on EnvironmentGroup on Environment (MFI-WGE) (MFI-WGE)
• Driven by need to:Driven by need to:
Increase efficiency, reducing transaction costs and Increase efficiency, reducing transaction costs and allowing more allowing more timely interventions; Improving borrower timely interventions; Improving borrower practices and practices and development effectiveness; and Development development effectiveness; and Development Committee’s request Committee’s request to harmonize financial, management, to harmonize financial, management, procurement, and procurement, and environmental assessment practices.environmental assessment practices.
• 11stst Phase on Common Framework for Environmental Phase on Common Framework for Environmental Impact Assessment Completed; Two Workshops held in Impact Assessment Completed; Two Workshops held in Africa: Addis Ababa in January and Tunis in May 2003.Africa: Addis Ababa in January and Tunis in May 2003.
• 22ndnd Phase: Will look Beyond EIA and the Phase: Will look Beyond EIA and the Need to develop Need to develop methods and tools that address projects that do not methods and tools that address projects that do not require full EIAs (Sectoral, Regional and Strategic require full EIAs (Sectoral, Regional and Strategic Assessment)Assessment)
The African Development Bank