E4212v2

Energy Small and Medium sized EnterpriseSub-Saharan Africa Trust Fund

The World Bank

January 2013

Environmental and Social

Management Framework

SENEGAL

This Environmental and Social Management Framework (ESMF) was developed by GVEP, with the support of Mr. Marco A. Zambrano, International Consultant.

January, 2013.

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Table of ContentsTable of Contents.................................................................................................................................... 2Acronyms................................................................................................................................................ 6Executive Summary................................................................................................................................. 71. Introduction....................................................................................................................................... 9

1.1 Objective..................................................................................................................................... 91.2 Scope ……………………………………………………………………………………………………9

2. The Program and Project Description...............................................................................................112.1 ESME in Sub-Saharan Africa Trust Fund Program.........................................................................112.1 ESME Senegal Project................................................................................................................11

2.1.1 Background..................................................................................................................... 112.1.2 Purpose........................................................................................................................... 122.1.3 Beneficiaries.................................................................................................................... 122.1.4 Subprojects information....................................................................................................122.1.5 Institutional arrangements for grant implementation: Support to small scale private sector

businesses........................................................................................................................ 13

3. Geographic and socio-economic description of the project area.........................................................163.1 Environmental and Social Characterization...................................................................................16

3.1.1 General information..........................................................................................................163.1.2 Environmental Aspects.....................................................................................................183.1.3 Socio-Economic Aspects...................................................................................................213.1.4 Vulnerability and Natural Disasters....................................................................................22

4. Policy, Legal and Institutional Framework.......................................................................................244.1 General Overview......................................................................................................................... 244.2 Policy Framework...................................................................................................................... 24

4.2.1 Energy National Policy.......................................................................................................244.2.2 Forest National Policy.........................................................................................................254.2.3 Agricultural Policy.............................................................................................................264.2.4 Tourism Policy................................................................................................................... 264.2.5 National Environmental Policy............................................................................................26

4.3 Legal Framework....................................................................................................................... 274.3.1 Energy............................................................................................................................ 284.3.2 Environment.................................................................................................................... 284.3.3 Others related sectors........................................................................................................294.3.4 International Agreements..................................................................................................30

4.4 Institutional Framework..............................................................................................................314.4.1 Ministry of Energy...........................................................................................................314.4.2 Regulation Commission of Energy Sector...........................................................................314.4.3 Senegalese Rural Electrification Senegalese Agency............................................................314.4.4 Ministry of the Environment, Protection of Nature, the Retention Basin and Artificial Lakes. . .314.4.5 Municipalities.................................................................................................................. 33

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5. World Bank Safeguard Policies.........................................................................................................346. Environmental and Social Impacts of the Senegal Energy SME.........................................................38

6.1 Environmental and Social impacts..................................................................................................386.2 Potential Negative Impacts and associated mitigation measures.........................................................39

7. Environmental Review Process.........................................................................................................427.1 Environmental Screening Process...................................................................................................427.2 Environmental Screening Categories...............................................................................................437.3 Environmental and Social Management Plan...................................................................................447.4 Steps in the Environmental Review Process – Procedures and Institutional arrangements.....................457.5 Roles and Responsibilities in the Environmental Review Process.......................................................46

8. Summary of consultations................................................................................................................. 48ANNEXES............................................................................................................................................ 49Annex 1 Environmental and Social Screening Sheet..............................................................................50

Annex 2 Outline of an environmental and Social Management Plan

Annex 3 Guidelines for a Pest Management Plan

Annex 4

Annex 4.1: Environmental Legal Framework in Senegal

Annex 4.2: List of projects and programs that requires an EIS or IEA under Senegalese law

Annex 4.3: Guidelines to prepare an Initial Environmental Analysis (Senegalese law) Annex 5 – World Bank Group’s Environmental, Health, and Safety Guidelines

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AcronymsABE Agriculture-Based EnterprisesANSD Agence Nationale de la Statistique et de la DemographieASER Agence Sénégalaise d’Electrification RuraleARAP Abbreviated Resettlement Action PlanCBD Convention on Biological Diversity CBO Community-Based OrganizationCDM Clean Development MechanismCGRN Comité de gestion des ressources naturellesCITES Convention on International Trade in Endangered Species CONSERE Conseil Supérieur des Ressources Naturelles et de l’EnvironnementCRSE Commission de Regulation du Secteur de l’EnergieDE Direction de L’EnergieEAC East African Community EDCG Environment Donor Coordination GroupEIA Environmental Impact AssessmentEIS Energy Information SystemEMCA Environmental Management Coordination ActEMP Environmental Management PlanESMF Environmental and Social Management FrameworkGDP Gross Domestic ProductGEF Global Environment FacilityGoS Government of SenegalGoR Government of RussiaGVEP Global Village Energy Partnership InternationalIWRM Integrated Water Resources Management MDGs Millennium Development Goals MEA Multilateral Environmental Agreement NEAP National Environmental Action PlanNGO Non-Governmental OrganizationNRA Natural Resource Accounting PAs Protected Areas PANA Plan National d’AdaptationPCC Public Complaints Committee PCP Public Consultation PlanPCR Physical and Cultural ResourcesRAP Resettlement Action PlanSENELEC Société Nationale d’ElectricitéToR Terms of ReferenceUNDP United National Development ProgramUSAID US Agency for International DevelopmentWHO World Health Organization WSSD World Summit on Sustainable Development

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Executive SummaryThe main purpose of the Energy Small and Medium sized Enterprise (ESME) Trust Fund, administrated by the World Bank, is to support private sector entrepreneurship and investment in the provision of energy services in remote, un-served and under-served regions within a number of Sub Saharan African countries. The organization responsible for the Program implementation in Kenya and Senegal is Global Village Energy Partnership (GVEP) International. In order to ensure adequate environmental and social management during the ESME Trust Fund implementation, and to comply with the national environmental laws and the World Bank’s Safeguards Policy, the present Environmental and Social Management Framework (ESMF) has been developed during the Trust Fund preparation. Due to the characteristics of the resources application in each country (Kenya and Senegal), it was agreed with GVEP to develop a separate instruments (ESMF-K and ESMF-S) in order to take into account the needs and requirements in terms of environmental and social management for each case.

In relation with the ESME-S the Trust Fund will introduce financial support to provide investment grants to small scale private sector businesses (Projet Energétique Multi-Sectoriel – PREMs) seeking to expand their production through investments in energy supply and operating equipment. The amount of this ESME-S Trust Fund is US$ 2.3 million. The funding will be used to provide grants to existing private businesses to support 14-16 productive initiatives (food processing, tourism and others sectors). Indirectly the investments will benefit the communities within the operational areas who participate voluntarily in the subproject activities.

The implementation of the ESME-S will bring high positive environmental and social impact. The environmental impact from the use of others source of energy, especially combustion used in fossil fuel power generation, and other greenhouse gases and air pollutants. In addition to these environmental benefits, improving the productivity of business creates direct and indirect employment and additional income in the surrounding area of the development.

The negative environmental impact during the subprojects implementation and operation is not expected to be significant, but it is important that the grant recipients implement good environmental and social practices.

The parent project, ESME Trust Fund, was classified in accordance with the Bank’s Environmental Assessment Policy (OP/BP 4.01) as Category B which applies to the Senegal ESME as well as to its sub-projects. Category A (high environmental and social risk) subprojects are therefore excluded from financing under the ESME project. In some cases (Category B), depending on the sub-project type, the Grant Recipient may have to prepare an Initial Environmental Analysis (IEA) to comply with national law in addition to the Environmental and Social Management Plan (ESMP) required by the implementation of this ESMF. The guidelines to prepare the safeguards instruments required by national law and also by the World Bank Safeguard Policies are included in this ESMF. While Category C

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subprojects do not require further environmental work past the initial screening, it is still important that they implement good environmental and social practices and comply with the requirements of national law. The project will not finance any new land acquisition or activities that restrict and/or lead to loss of assets, income, or means of livelihood.

Any activity financed under the ESME-S will be subject to the procedures outlines in this ESMF.

With regard to the institutional capacity and safeguards experience, GVEP is implementing ESME funded programs in Tanzania and Rwanda as a part of existing World Bank funded programs governed by safeguards frameworks. GVEP has included US$ 30,000 in its budget to support the implementation of this ESMF, including the recruitment, as needed and on a part-time basis, of a consultant with experience in environmental and social assessment.

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1. Introduction

The $30 million Trust Fund to support Energy Small and Medium sized Enterprise (ESME) in Sub-Saharan Africa (SSA) has the objective of fostering local private sector entrepreneurship and investment in the provision of energy services in remote, un-served and under-served regions within a number of Sub Saharan African countries. The aim is to support the establishment and the development of stable and viable privately run enterprises and business models that will increase access to reliable, sustainable, and affordable modern energy services in peri-urban areas, small towns, and rural areas within the selected countries.

To implement this project, the Government of Russia (GoR) requested that the World Bank manage this trust fund and closely collaborate with the Global Village Energy Partnership (GVEP) International. This agreement was formalized with the signing of an Administration Agreement between the World Bank and the GoR on March 19, 2009 for the ESME support in SSA project. In 2012, the project’s closing date was extended to 31st August 2014 and the Administrative Agreement is being amended to give GVEP responsibility as the grant’s implementing agency in Senegal and Kenya.

To ensure adequate environmental and social management during the project implementation in Kenya and Senegal and to comply with the national environmental laws and the World Bank’s Safeguards Policy, this Environmental and Social Management Framework (ESMF) was developed as part of project preparation and GVEP will be responsible for its implementation

1.1 Objective

The overall purpose of the ESMF-S is to:

Present the project’s scope, boundaries, and main activities; the applicable World Bank Safeguards policies and their requirements; a diagnosis of the policy, legal, institutional framework in Senegal as well the social and environmental characterization of the country.

Guide GVEP and Grant Recipients with methodologies, tools and procedures to develop and implement Environmental and Social Management Plans (ESMPs) during the project implementation. The ESMF-S should be implemented by GVEP and Grant Recipients.

1.2 Scope

The activities that will be financed under the ESME trust fund are not fully know, though there is an indicative list per sector (see Chapter 6).The ESMF presents a comprehensive process that aims to assess the negative environmental and social impacts caused by the

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project’s activities and to mitigate them. The ESMF also includes monitoring and evaluation measures.

To be effective, the implementation of the ESMF must be integrated in the grant approval process. GVEP will use the ESMF to ensure that proposed activities do not have significant or long-lasting negative environmental and social impacts. In applying the ESMF’s methodology, GVEP will ensure that grantees avoid, minimize, or mitigate the negative impacts to an acceptable level. An exclusion list included in this ESMF regroups all the activities that ineligible for funding: activities typically excluded by the Bank (arms, illegal activities, bars, etc.) as well as activities with impacts on natural habitats, forests, endangered species, international waterways, and activities involving disputed areas, involuntary resettlement, and dams.

The ESMF is based on a two-step approach:1 Conduct a preliminary environmental assessment using the screening checklist in order

to determine the environmental category of the activity to finance.2 Implement the appropriate procedure based on the assigned EA category. There are

three categories: a. Significantly adverse impact (World Bank’s Category A): activity is excluded b. Potentially adverse impact (World Bank’s Category B): Prepare Environmental and

Social Management Plan (ESMP) c. Minimal or no adverse impact (World Bank’s Category C): No Impact assessment

or further environmental work needed.

In relation to the contents of the document, the ESMF-S is divided into 8 Chapters: The First Chapter presents the Introduction including the Objective and Scope of the instrument; the Second Chapter presents the description of the ESME Trust Fund Program; the ESME proposed for Senegal; and the potential subprojects that the Project will support; the Third Chapter presents geographic and socio-economic description of the project area; the Fourth Chapter presents the policy, legal and institutional framework; the Fifth Chapter presents and analysis of the World Bank Safeguards Policies as applicable to the project; the Sixth Chapter presents the potential environmental and social impacts and the measures to prevent, mitigate and/or compensate the potential negative impacts; the Seventh Chapter presents the Environmental Review Process; and the Eighth Chapter provides a summary of consultations.

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2. The Program and Project Description

2.1 ESME in Sub-Saharan Africa Trust Fund Program

The development objective of the Energy Small and Medium size Enterprise (ESME) Trust Fund (US$ 30 million) is to strengthen the capacity of SMEs that provide energy services to poor communities in selected countries in Sub-Saharan Africa (SSA). In the case of Senegal, the focus is on promoting private sector investment in energy generation for productive use.

The Program has three components.

First Component: Additional Financing to Scale-Up Energy expansion provides grants to the Governments to support programs benefiting energy SMEs. The funds are channeled as additional parallel grant funding to IDA/IBRD projects. Under these arrangements, grant agreements have been signed with Tanzania, Mali, Botswana, and Rwanda and additional agreements are expected to be signed with Uganda.

Second Component: GVEP Technical Assistance to SMEs and REAs. The component finances GVEP to provide technical assistance to energy SMEs and REAs managing energy SME grants under the Component 1. The Amendment of the Administrative Agreement has expanded this component to also authorize GVEP to provide grants directly to Energy SMEs. Subsequently, two grant programs have been agreed, in Kenya and in Senegal.

Third Component finances World Bank costs for the management and administration.

With regard to the first component, GVEP International will act as the implementing agency for the project and administer and award ESME grants in Kenya and Senegal. In Kenya, the grants will be competitively awarded to the distributors of off-grid lighting products (OGL); and in Senegal, grants will be provided to SMEs to acquire electricity in order to expand their business and boost their production (e.g. solar PV lighting for eco-lodges, refrigeration equipment for dairy farms, and others).

2.1 ESME Senegal Project

The ESME Grant Project in Senegal will provide financial support through investment grants to small scale private sector businesses seeking to expand their production through investments in energy supply and operating equipment. The amount of this project is US$ 2.3 million. This financing is a grant from ESME Trust Fund provided by the GoR.

2.1.1 Background

The project will assist small and medium-sized private businesses to meet the costs of securing an enhanced power supply and the additional equipment required to make productive use of

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that power. The ability of small businesses to access energy services from either concession holders or transitional entities is severely limited. The only viable option for many businesses is to own and operate power equipment themselves.

2.1.2 Purpose

The objective of the Trust Fund in Senegal is to provide financing and technical assistance to Small and Medium Enterprises (SMEs) to acquire electricity in order to expand and upgrade their activities. Specifically, the project will support private businesses to help meet the investment costs of expanding their operations, in accordance with eligibility criteria. The funding from the ESME Trust Fund will be used to provide grants to private businesses to bring 14-16 expansion plans into the implementation stage.

2.1.3 Beneficiaries

The direct beneficiaries will be the Small Medium-sized Enterprises (SMEs) that promote economic activities related to sectors such as food processing and tourism. Indirectly, the investments will benefit, within the target areas, local communities through increased services, employment opportunities, and improved product offering. According to local reports, frequent power outages have contributed to the closure of many small and medium enterprises.

The key stakeholders include the small scale private sector businesses (Project Energetique Multi-Sectoriel – PREMs); Senegalese Rural Electrification Agency (ASER); Local Authorities (Municipalities); environmental authorities at the local level; the environmental authority at the national level; and the local communities.

2.1.4 Subprojects information

a. Eligibility

The subprojects are demand driven. In 2010 an initial selection of potential subprojects was made from a database of 29 PREMS. Seven businesses were selected for potential support and detailed investment plans have been developed. There is currently a second group of interested PREMs that are in the pipeline for consideration. The description of the ESME-S project, including expected SME and product eligibility criteria are included in the Senegal Project Paper.

b. Description

The grants will be provided to SMEs to acquire electricity in order to expand and upgrade their activities. The investments could be in:

- Solar PV installation for eco-lodges; - Refrigeration equipment for dairy farms; - Water pumps for irrigation;- Connection to the grid;

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- Generators- Other relevant energy upgrades.

The investments will be in the following sectors: agriculture, dairy processing, village tourism, and peri-urban poultry farming.

c. Amount

- Maximum grant amount of US$ 150,000. In order to allow 12-14 firms to access the available funding and foster competition between grantees, the maximum amount of a grant to one firm shall be US$ 150,000. In exceptional circumstances the committee may consider an award up to US$ 250,000, but only where the total investment in the project exceeds US $ 1.0 million and the scale of the impacts on the local community are large.

- SME contribution. In general, the total grant amount given to one firm shall not exceed 50% of the total amount of the investment (including revenues to be reinvested by the company in the following three years.) For smaller projects (US$ 120,000 and less) where the SME has limited financial means and the social benefits are large the grant element may increase to 85% of total costs. The level of grant should be appropriate to the specifics of each business case.

2.1.5 Institutional arrangements for grant implementation: Support to small scale private sector businesses

GVEP will have the responsibility for implementing the ESME grant in Senegal. GVEP is an international non-profit organization which helps implement energy-related projects providing reliable electricity for rural and peri-urban communities in Africa and Latin America thereby improving the quality of people’s lives, stimulating growth and reducing poverty. GVEP works to increase access to modern energy and reduce poverty in developing countries.

Apart for providing technical assistance and support to energy businesses, GVEP also provides direct access to new sources of capital to help them achieve long term sustainability. This consists of grants deployed through the programs, including business plan competitions, provision of loan guaranteed for lenders to small businesses, and debt and equity from a renewable investment fund being launched by GVEP.

GVEP started as a partnership network, set up at the Johannesburg Sustainable Development Summit in 2002, with its secretariat hosted by the World Bank. In 2006 it became an independent charity, registered in the UK and governed by a Board of Trustees.

Channeling funds through GVEP. The US$ 2.3 million funds will be channeled through GVEP. GVEP will receive funds from the ESME Trust Fund administrated by the World Bank, and will pass on these funds to the businesses that are approved for funding. The proposed subprojects will be analyzed by GVEP using this ESMF-S instrument in order to

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ensure the compliance of the national law and the World Bank safeguard policies. The subprojects will be implemented by the Grant Recipients.

Major teams and responsibilities. The main teams that will be involved in the implementation of the ESME-S in-kind support for RE projects program are GVEP, the Evaluation Committee and the Grant Recipients. The World Bank will supervise the project implementation, including the compliance with the WB environmental and social safeguards.

GVEP: GVEP will be responsible for the overall implementation of the grant funding. The main responsibilities of GVEP will be managing and implementing the project, identify suitable businesses for support, and conducting the monitoring & evaluation. GVEP will identifying potential PREMs, and will offer support to PREMs promoters in preparation of applications. GVEP will also be charged with overseeing the procurement of service providers and equipment for the successful applicants. Short-term support in specialty areas will be provided to the SMEs by on call experts who advise on the design and implementation of investment plans. The ESME-S Manager will coordinate call for proposals, screen initial applications and provide technical assistance to applicants to develop the proposal upon requests by applicants. Additionally, the ESME-S Manager is responsible for carrying out due diligence checks on the applicants and presenting candidate projects to the Evaluation Committee.

Evaluation Committee: The Evaluation Committee will be primarily responsible for approving grant recipients. It will consist of representatives from ASER, the private sector and technical experts. Members have been agreed upon by GVEP, ASER and the World Bank. The Evaluation Committee will elect a Chair from amongst its members.

Monitoring and Evaluation: GVEP will have overall responsibility for the monitoring and evaluation of the project. This will entail developing the M&E framework, monitoring the project performance, including tracking the indicators included in the Results Framework. Consultants shall be procured by GVEP for evaluations that will take place in a reasonable timeframe after projects receive awards.

Institutional arrangements for the preparation and implementation of the ESMF are outlined in Chapter 7.

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Figure N° 1: GVEP structure of principal ESME funded staff

COO - London

CEO - London

Finance and Procurement Manager - London

Regional Manager Africa

Communications Manager - London

Finance and ProcurementManager Africa

ESME Manager

West AfricaManager

SME Specialist

(WA)

SME Specialist

(EA)

TechnicalSpecialist

Special AdvisorInvestment

Sustainable MarketsAdvisor

FrancophoneAssistant

Part-funded by ESME

Fully funded by ESME

M&E London

Source: Patrick Balla, GVEP, 2012

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3. Geographic and socio-economic description of the project area

3.1 Environmental and Social Characterization

3.1.1 General information

a. Location

Senegal is located on Africa's west coast. With a surface area of 196,722 km2, Senegal has 700 km of coastline and is bordered by four other countries: Mali to the east, Guinea and Guinea Bissau to the south. The Gambia, apart from its coastline, is surrounded by Senegal. Senegal is relatively flat, with the exception of the Fouta Djalon highlands near the border with Guinea.

Figure N° 2: Senegal’s Map

Source: Google Map, 2012

b. Political Division

Senegal has 14 administrative regions, a refined version of a configuration outlined at independence in Law 60-015 of 13 January 1960. Decentralization, implemented since 1964, was reinforced in 1990. It confers full independence and local management powers on elected councilors, including some powers that were formerly the responsibility of the central government. Since decentralization, the role of representatives of the central authority has been to monitor legality.

Senegal has set up institutions intended to guarantee a state that is subject to the rule of law. The constitution enshrines independence of the magistrates and courts, inviolability of personal rights and the inalienable nature of the right to defense. To ensure good management of the nation's affairs, Senegal has bodies directly or indirectly responsible for controlling

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public finances and related bodies such as the Inspection Générale d'Etat (state inspectorate) and Cour des Comptes (audit commission).

The government's strategy to attain its objectives to defeat poverty is based, partly, on the promotion of decentralized rural development that will involve all of the stakeholders and on sectoral programmes developed by the State. The strategy is developed around the principles of local responsibility, transparency and co-management of community investment in terms of both implementation and maintenance.

c. Climate

Senegal's climate is characterized by an alternating dry season, from November to mid-June, and a rainy season from mid-June to October. The climate is however, somewhat erratic, which has a direct effect on agricultural activities, livestock farming and the agri-food industry, thereby affecting the country's ability to maintain sustained economic growth. Senegal is amongst the countries with the greatest amount of sunshine hours: around 3,000 hours per year. The main known and exploited extractable resources include phosphate and limestone in the Thies region and gas in the Diamniadio region.

Average annual rainfall follows an increasing slope from the north to the south of the country, going from 300 mm in the semi-desert north to 1,200 mm in the south, with variations between years. Rainfall variation is more accentuated in the Sudan-Aahelian climate zone. Average annual rainfall of 1,000 to 1,500 mm/yr in the Sudan climate zone allows growing of rice and of some cash crops.

Average temperatures are around 28°C with extremes as high as 45°C in eastern Senegal and 20°C on ‘La Petite Cote’. At the Saint Louis coast, Dakar, the trade winds blowing along the coast reduce the temperature.

d. Physiographic

Senegal's topography is relatively flat except for moderate relief in the southeast. Most of the country is a Tertiary sedimentary subsidence basin (USGS/EROS, op. cit.) There are four major rivers which flow west into the Atlantic: the Senegal, Saloum, Gambia, and Casamance. They are wide and meandering with broad estuaries at their mouths.

Geologically, Senegal is composed of two primary relief features. The first is a dissected, elevated region of Paleozoic and Precambrian folded and faulted rocks in the southeast. These are rocks of the "African Shield". They are primarily quartzite, granite, and granitized schists. The second is a sedimentary basin of Tertiary and Quaternary rocks and sediments occupying the western and northeastern part of the country. This is the "Continental Terminal" formation, which occupies by far the largest part of the country. This sedimentary layer is composed of heterogeneous clay sandstones of varying thickness. It consists of a low plateau and plains overlain by wind-blown sediments, alluvial deposits, and intermittent laterite hardcap.

e. Soils

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The soils of Senegal range from dry sandy soils in the north, to tropical ferruginous soils in the central region, and to ferralitic soils in the south. Overall, soil fertility is low and soils are mostly fragile, making them highly susceptible to water and wind erosion (USGS/EROS, op. cit.). The soil texture of most fresh water river valleys tends to be high in clay and silt content. Soils in these valleys are classified as "generally good soils", i.e., they do not have serious limitations and are able to produce good yields of suitable, climatically adapted crops. Most cultivated soils located in the Peanut Basin are "generally poor to moderate soils". These soils have one or more limitations that restrict their use, are usually of fairly low natural fertility, and generally give low to moderate yields of climatically adapted crops under traditional systems of management.

3.1.2 Environmental Aspects

The main environmental issues in Senegal are:

- Strong pressure on forests to satisfy energy needs, weakening of rural systems marked by an annual loss of 80,000 ha of forest. More than 400,000 ha of land suitable for agriculture were affected by bush fires in 2006;

- Increased vulnerability of coastal areas resulting from the high density of economic and other human activities, accentuated by coastal erosion and silting; and

- Other issues are inadequate management of the urban environment, with failure to respect areas to be left unoccupied in order to preserve the ecological balance (Niayes, coast, other low-lying lands); obsolescence of the automobile fleet, (this have been alleviated to some degree by a ban on the introduction of private passenger vehicles more than five years old); and non-compliant industrial emissions.

a. Vegetation

The vegetation of Senegal can be divided into three major ecological regions. From north to south, they are: the Sahelian Region, the Sudanian Region, and the Guinean Region. The Sahelian Region occurs between rainfall isohyets of 150 and 700 mm/yr. The core area lies between the 300 and 500 mm/yr isohyets. It is located in northern Senegal. The early seasonal rains, which usually begin in July, transform the landscapes into green, lush rangelands, drying out quickly after the last rains in late September. During the long dry season of 8 to 10 months, the herbaceous cover disappears as livestock and termites devour it, exposing bare soil to wind erosion. The primary land use is raising animals, which has been a traditional activity for centuries. Woody plants are usually associated with the vast expanses of seasonal grass cover, together forming the dominant vegetation types of the Sahelian Region. The most common types are shrub savannas, shrub and tree savannas, and bushlands.

The Sudanian Region lies to the south of the Sahelian, covering about two-thirds of central and southern Senegal. It is the domain of the savanna. The typical vegetation types include the savanna woodland and the dry woodland. The Region predominates between the 700 and 1500 mm/yr isohyets and is centered on the 900 to 1200 mm/yr isohyets. It is characterized by rainfall spread over 5 to 6 months, of which July, August and September are nearly certain to have rain. Like the Sahelian Region, the rains occur during the high sun, summer months. A distinct dry season of 6 to 7 months is transformed into a wet, green season by the first rains,

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triggering vigorous vegetation growth. While the Sudanian Region is often defined by average annual rainfall, other criteria are also considered. Sahelian species that extend into the Sudanian Region disappear in a gradual transition as one progress into the central Sudanian domain. Trees typical of the central Sudanian Region include Cassia sieberiana, Daniellia oliveri, Khaya senegalensis, and Terminalia macroptera. There are also many species of Combretum and Acacia. Human occupation has greatly modified the vegetation composition and structure, particularly in the Peanut Basin. . The Guinean Region proper can only be found in the extreme southwest corner of Senegal, although characteristics of this zone begin to manifest themselves in the southern Sudanian Region. This is the region of the semi-evergreen dense forest; its extent has been reduced to a few remnant communities by widespread deforestation for the cultivation of rice, manioc and peanuts. The Guinean Region predominates in the areas of average annual rainfall exceeding 1500 mm/yr, with the central Guinean Region having precipitation levels of over 1800 mm (in countries south of Senegal). Despite the high rainfall, this region has a distinctly dry season of 7 to 8 months, distinguishing it from the Equatorial Region of Africa

b. Protected Areas

Terrestrial and marine protected areas in Senegal are 23.46 % of total territorial area in 2010. The forest area includes classified areas (forest area of the State) and protected areas (forests in the areas of land which are the responsibility of local authorities). Management of the national forest estate is the responsibility of the Department of Water and Forests and the National Park Service.

The national forest estate includes classified forests, reforestation and restoration perimeters, integral nature reserves, national parks and reserves. These are distributed as follows: 213 classified forests of 6,237,648 hectares total area, of which 20 are sylvo-pastoral reserves (1,514,000 ha), 8 are hunting (cynégétique) areas (1,976,315 ha), 5 national parks, plus 10 integral and special reserves which cover an area of 1,613,790 ha, or about 8% of the territory.

Some parks or classified forests were established as biosphere reserves (Niokolo Koba, the Sine-Saloum Delta, and classified forest of Samba Dia), or World Heritage for Humanity sites (Niokolo Koba and Djoudj Parks). The size of the classified area varies depending on the acts of classifying or declassifying forests taken in the overall context of land management.

Figure N° 3: Protected Areas in Senegal

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Source: Google Map, 2012

Table 1: Parks, Reserves, and Other Protected Areas in

Protected Areas Name

International Parks - Reserve des éléphants du Fleuve- Senegambien

National Parks - Basse-Casamance- Delta du Saloum- Djoudj- Iles de la Madeleine- Langue de Barbarie- Niokolo-Koba

Nature Reserves - Dindefello Special Faunal and Floral Reserve- Kassel Special Bird

Hunting Reserves - Maka-DiamaWildlife Reserves - Ferlo-Nord

- Ferlo-Sud- Gueumbeul Special- Ndiael- Popenguine Special

Classified Forests - Samba DiaSpecial Reserves - KalissayeWetlands of International Importance (Ramsar)

- Bassin du Ndiaël- Delta du Saloum- Djoudj- Gueumbeul

World Heritage Convention - Djoudj National Bird Sanctuary- Island of Gorée- Niokolo-Koba National Park- The Island of Saint-Louis

UNESCO-MAB Biosphere Reserves - Delta du Saloum- Forêt classée de Samba Dia

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- Parc national du Niokolo-KobaSource: USAID, Senegal Biodiversity and Tropical Forest, 2009

c. Fauna

Lions and leopards are occasionally found in the northeast, as are chimpanzees, elephants, hippopotamuses, and buffalo. The wild pig, hare, guinea fowl, quail, and bustard are widely distributed. Insects and birds are abundant, and there are numerous lizards, snakes, and other reptiles.

3.1.3 Socio-Economic Aspects

a. Population

Senegal has a population of 11,519,226, of which 51.9 percent is female (ANSD, Démographie du Senegal, 2007). Around 40 percent of the population lives in urban areas. The population growth rate is 3.1 percent per year. The six principal ethnic groups are the Diolas, Malinkes, Peuls, Sereres, Soninkes and Wolofs, but there are others (Kobianas, Manjack, etc.) Real growth in GDP was estimated to be 4.8 percent in 2007, mainly resulting from the dynamism of the tertiary sector, against 2.3 percent in 2006 (DPEE, 2008). The level of activity for the population was 43% in 2005–2006, with urbanization rate of 40.7 percent.

Figure N° 4: Population and Percent of Poor and ratio of severity

Source: Senegal Government, 2009

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b. Education

The country’s education strategy aims to reduce inequalities in access that are based on gender or housing environment (rural, peri-urban or urban). The ten-year plan for education – completed in 2004 - makes schooling obligatory up to the age of sixteen. c. Health

Senegal's health system is ranked 59th for overall performance (4th in the Africa region), according to the WHO. Its organization is based on a three-tier, pyramidal structure:

- A first line: made up of 50 health districts with 55 health centers which are points of referral for 768 health posts that are focal points for 551 rural maternity units and 1,384 municipal health units. In theory, the health centers correspond to district hospitals but a lack of technical capacity means that they cannot fulfill their role as referral centers;

- An intermediate level: consisting of 10 regional hospitals in the ‘health’ regions and 2 departmental (county) hospitals; and

- The national level: with 7 national hospitals.

At national level, malaria is the reason for 35 percent of medical consultations, and diarrhea related illnesses 5 per cent. Malaria accounted for 27 percent of morbidity in 2005, indicating an inadequacy in the area of health education and a lack of health information.

3.1.4 Vulnerability and Natural Disasters

The West African nation is vulnerable to a multitude of natural and man-made disasters including flooding, drought, land degradation, rising sea levels (predicted to rise by one meter toward the end of the century) and locust infestation. Flooding in particular is a major concern in the country and with a long coastline, it is the most serious natural hazard Senegal faces. Urban areas in and around the capital Dakar and other major cities are most at risk. An assessment of post-disaster needs conducted in 2009 for floods indicated that more than US$100 million in damage and losses had occurred, mostly in and around Dakar.

The threat of flooding in Dakar has worsened for a number of reasons. In the 1970s and 1980s, rapid urbanization occurred in the suburbs because of drought. Combined with a rural exodus that created informal settlements in flood prone areas as well as a high demand for buildings and roads, the city’s drainage system was compromised.

Annual flooding in the city affects the poorest city residents the most because they tend to live in low-lying, unplanned areas that suffer from a lack of basic services. In 2009 alone, floods in the outskirts of Dakar affected an estimated 360,000 people and caused damage and losses estimated at US$103 million.

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City authorities report major losses in infrastructure and public and private property every rainy season. The stagnant water left by floods also brings health problems such as malaria or cholera.

Figure N° 5: Flood Natural Disaster

Source: JRC Global Atlas on Crisis Areas, 2012

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4. Policy, Legal and Institutional Framework

4.1 General Overview

Senegal is a coastal Sahelian country located in the western part of Africa with an estimated population of about 12 million people (2011). Although overwhelmingly agricultural, Senegal has a growing industrial sector, one of the largest in West Africa. Nevertheless, the economy remains largely dependent on a single crop: peanuts. In the past, Senegal has suffered prolonged droughts, which have caused severe land degradation and have aggravated the chronic rural exodus. It is estimated that 47 percent of the Senegalese population lives in urban areas. Currently, 25 percent of Senegal’s urban zones have been illegally occupied, particularly in the Dakar area, where nearly 30 percent of the urban population lives in unplanned areas. The Human Development Index (HDI) rank Senegal 156 out of the 174 counties listed by the United Nations Development Program (UNDP).

The country's energy system is highly dependent on biomass and petroleum products, a situation compounded by the absence of efficient technologies and low density of distribution grid. In spite of a Lettre de politique du secteur de l’énergie (LPDSE − energy policy letter) which places greater focus on regulation and more use of new and efficient forms of energy, there is a lack of any regulatory framework for all available forms of energy and a systemic weakness of financial structures to support energy policy.

4.2 Policy Framework

4.2.1 Energy National Policy

Since 2003, the focus of Senegal's energy policy has been on the contribution that the energy sector can make in the provision of basic ‘social’ services such as education, health and water. These are seen as fundamental elements of the campaign to increase wellbeing and eradicate poverty, while taking into account environmental issues while keeping an overall eco-development approach. There are three dimensions of energy policy:

a. Social: Widening access to modern forms of energy, especially electricity, in rural areas as a lever to combat poverty;

b. Economic: Establishing stable levels of energy supply, production and distribution with an eye towards the country's long-term interests; and

c. Environmental: Given the fragility of the country's ecosystem, preservation of the environment is at the core of domestic energy management strategies and of consolidation of the sustainable management of ligneous resources (by inculcating greater responsibility on the part of local authorities).

The main thrust areas of the strategy are as follows:

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- Restructuring of the electricity sub-sector. SENELEC, the national electricity company, is responsible for transmission and wholesale of electricity, and operation of its generating plants. SENELEC can participate alongside independent power producers in calls for tender for the construction of new generating plants. It alone is authorized to transmit electricity over the national interconnected grid within the perimeter of its concession. The evolving regulatory framework will lead to the emergence of other players generating for SENELEC as the sector develops;

- The development of rural electrification by setting up of a Rural Electrification Agency (ASER) with a remit to provide access to electricity for 3.8 million rural dwelling Senegalese or 365,000 rural households before 2015, against 102,000 rural households at present;

- Development and organization of the oil sector and increasing of storage and refining capacities.

- Sustainable management of domestic fuels; and - Energy management, via a better policy on energy efficiency and demand side management

by SENELEC.

The new Energy Policy is based, essentially, on the aim of ensuring Senegal's energy supply, under optimum conditions and at lowest possible cost, for households and the major sectors of the economy, while widening the population's access to modern energy services (DE, 2008).

4.2.2 Forest National Policy

Forests are essential to protect the environment and conserve wildlife. The forest is the primary habitat of terrestrial biodiversity and an important carbon sink. Senegal’s forest policy was adopted in 2005 for a period of 20 years. The policy aims essentially at:

- Strengthening the decentralization process to prevent natural resource degradation, through the involvement and support of local communities in the management of transferred environmental authority;

- Valorizing forest resources (rational and sustainable exploitation, fuel diversification, reduction of consumption losses), protecting the environment and combating desertification, striking the right balance between meeting the needs of the people and the preservation of biodiversity;

- Opening the sector to other operators who are able to increase the investments made in the field of natural resource management (NRM), through the involvement of the private sector especially in the management of natural forests, plantations, parks and wildlife reserves, in the framework of an environment that will allow investors to generate profits while ensuring the sustainability of the resources; and

- Improving and rationalizing forest exploitation, mainly charcoal, through the use of more efficient technologies (Casamance kiln) and in the context of the sustainable management of forests. This option will support sustainable production of charcoal from the forests. The promotion of other alternative energy sources, in particular solar energy, wind energy, biogas, crop residues, and plant biomass in general would also help to alleviate the main threats to forests, including the over-exploitation of forest resources and bushfires.

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4.2.3 Agricultural Policy

As stated in the Senegal Agricultural Sector Analysis Update (ISTI, 1997), the general principles for the strategy were reflected in the Letter of Agricultural Development Policy (LADP) of April, 1995. In this letter, the GoS sets out six main objectives:

- Target agriculture growth of four percent per year;- Improved food security through intensified production;- The creation of agricultural employment to increase rural purchasing power;- Improved NRM guided by the NEAP; - Promotion of private sector investments; and - Improved efficiency in public resource management.

This macro-economic orientation is also in line with the GoS reforms concerning open markets for inputs (the decisions not to subsidize agricultural inputs), decentralized decision-making concerning Natural Resources Management matters, and the privatization of all marketing activities formerly carried out by the state (i.e., the state was formerly in charge of selling rice in both internal and external markets).

4.2.4 Tourism Policy

The Senegalese policy for ecological tourism is based on two essential principles:

- The need to safeguard flora and fauna (particularly vulnerable or threatened species) by protecting their habitats and maintaining favorable environmental conditions; and

- The need to satisfy socio-economic needs while promoting sustainable natural resource, based on a more complete understanding of the requirements of the private sector.

The development plan for the hunting tourism sector elaborated by the government in 1995, proposed increasing tourism 25% by the year 2010. From the perspective of developing viable ecological tourism, Senegal made great efforts to promote tourism. It was thereby proposed to carry out both the preservation and the rational exploitation of natural resources as the basis for sustainable sector development.

This policy is expressed at two complementary levels, to promote both visual and hunting tourism. With regard to hunting tourism, the hunting code institutes a regulatory framework for protection of fauna that puts in place a policy for the conservation of wildlife resources.

Starting in 1972, the government decided to create zones for controlled exploitation of fauna to promote hunting tourism. It is under these circumstances that the first “zones of hunting interest” (ZIC) were created, and starting in 1988/89, zones for leased hunting rights (zones amodiées) were registered with relatively modest performance.

4.2.5 National Environmental Policy

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The Environmental Policy in Senegal is characterized by two phases:

a. An initial phase whereby the environment was perceived as accompanying sector (successively for industry, urban planning, tourism, others), and where its link with development was ill-established; and

b. A Second phase where, the release of the Brunthland Commission Report and the Earth Summit in Rio (1992), the environment was the regarded as the fundamental basis of the sustainable development.

This first phase is characterized by the adoption of fairly centralized approach by the state. Being, omnipresent, the state designs and implements large-scale projects, especially in the area of forestation, a major axis of its environmental policy , without any attempt to involve local actors in the implementation and monitoring of the environmental protection actions. Within the framework of this approach, some major shortcomings could be seen in:

- System of vertical planning;- Different statutory legislative system;- Lack of articulation between environmental and sectoral polices;- Inconsistency between spatial development scheme at national and regional schemes;- Poor adaptability of instruments to local conditions; and- Lack of information, education, and communication policy.

Currently the government has started to adopt a more consistent approach in dealing with environmental problems under a perspective of sustainable development. In this respect, highly strategic measures have been taken to readjust and reinforce the institutional machinery responsible for the management of environmental and natural resources.

National Environmental Action Plan

The preparation of the National Environmental Action Plan (NEAP) between 1995 and 1997 was the first priority of the Council of Environment. This plan is the framework for different sectoral strategies and polices. This plan covers the following themes:

- Institutional and Legislative framework, land development, and development planning;- Local land management and decentralization policy within the framework of an integrated

approach to environmental problems;- Issues of deterioration of the living standards;- Environmental research, Education and Communication;- Highly vulnerable eco-system (marine and coastal environment, humid zones, etc);- Biological Diversity and Desertification; and- Funding mechanism for management actions of natural resources and the environment.

4.3 Legal Framework

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Following present the legal framework related with the energy and environment legislation in Senegal, and other laws and regulations related to other sectors that are important to takes into account in this ESME-S Project. 4.3.1 Energy

Senegalese parliamentarians have praised a new law aimed at promoting an enhanced renewable energy production (Clean Tech Law). The bill, named Guidance on Renewable Energy, was adopted unanimously by the country's Parliament and attracted praises for its innovative nature.

Among the objectives of the law are that it seeks to secure supplies in sufficient quantities and the best quality, durability and cost, as well as increase people's access to modern energy services and reduce vulnerability to pollution from fossil fuels.

4.3.2 Environment

The basis of the environment legal framework is the Constitution of the Republic of Senegal where mention the right of citizens to live in a safe environment. Specifically in the Title II, mentions: “The Republic of Senegal is to guarantee all citizens their fundamental individual rights, economic and social rights, and collective rights. These rights include: the right to education; the right to work; the right to health; and the right to a healthy environment.

The main environmental legal instrument in Senegal is the Environmental Act (Code de l’Environnement). This Law (N° 2001-01 of 15 January 2001) takes into account the new dimensions of environmental issues (Ref. Stockholm, Rio Conferences, between others). The regulation of this Law was approved by Decree N° 2001-282 of 12 April 2001 called Regulatory Part of the Code of the Environment.

Through this Regulatory Part of the Code of the Environment the Senegalese government has put in place a legal framework for the good management of the environment. This law is divided into 6 parts, covering main areas of environmental concern as follows: General provisions (I), Prevention and fight against pollution and nuisances (II), Protection and enhancement of receiving environments (III), Sanctions and miscellaneous provisions (IV), Air Pollution (V), and Sound pollution (VI). The law provides for the setting up of the various ESIA regulations and Guidelines which are discussed below:

Title II, Chapter V Article L 48 specifies that all development projects or any activity that is likely to harm the environment, as well as policies, plans, programs, area and sector studies have to be the object of an environmental assessment which can include environmental impact studies, strategic environmental assessments en environmental audit.

Title II, Chapter V Article L 49 specifies that the main stakeholders involved in the environmental assessment are the promoter and the competent authorities. The impact study is the responsibility of the promoter and is submitted to the Minister of Environment that issues a certificate of approval after the technical notice of the direction for environment and classified establishments.

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Title II, Chapter V Article L 50 the different categories of activities and facilities whose realization or operation requires an impact study are defined by decree of the report of the minister responsible for the environment. The decree establishes and revises the list of activities, work and planning documents for which public authorities cannot decide, approve or authorise without an impact study that allows them to evaluate the consequences for the environment. All new projects on this list that demand an authorisation to do exploitation are obligated to present an environmental impact study.

In Title II, Article R 40 of this decree, the potential impact, the nature, the magnitude, the location, and the type of project classifies a project in one of the two following categories:

- Category 1: Projects are likely to have a significant impact on the environment. And Environmental Impact Assessment to integrate environmental considerations in the economic and financial analysis of the project. This category demands a thorough environmental evaluation.

- Category 2: Projects have a limited impact on the environment or the impacts can be mitigated by implementing measures or changes in the conception of the project. This category is subjected to an Initial Environmental Analysis.

Annex 4.2 presents the list of Category 1 and Category 2 projects that requires and Environmental Impact Assessment (EIA) and Initial Environmental Analysis (IEA) respectively.

Other environmental legal instruments at the national that are important to take into account during the ESMF-S implementation are presented in the Annex 4.1.

4.3.3 Others related sectors

a. Water:

In relation with the Water Sector, the national legislation has 3 main instruments:

- Decree No. 98-555 of 25 June 1998 . Implementing the provisions of the Water Code concerning authorizations to construct and use catchment and discharge structures.

- Decree No. 98-556 of 25 June 1998 . Implementing the provisions of the Water Code concerning water control.

- Decree No. 98-557 of 25 June 1998 . Establishing a High Council on Water

b. Land:

Land management is governed by law 64-46 of June 17, 1964. This law provides for equitable access to land, an essential for resource management. Based on this law, supplemented by Law 72-25 April, 1972 relating to rural communities, the government initiated a land reform. Urban areas, pioneer areas and classified areas are under the authority of the State Departments.

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This legislation permanently supersedes the customary law enshrining the traditional "right of use" for the benefit of people who have the capacity to make the land productive.

c. Food Safety:

The main instrument for the Food Safety is the Decree No. 98-981 of 4 December 1998 determining the rules governing the organization and operation of the Food Technology Institute (ITA). The ITA shall have the following tasks:

- Conducting applied research in order to promote the optimal utilization of agricultural produce and its derivatives by undertakings in the agro-industrial sector, the craft industry, and the households of Senegal and the sub-region by developing technological processes for the processing and preservation of local agricultural products, the products of livestock farming, and fishery products;

- Contributing to the performance of the agro-industrial sector in Senegal by providing a support and advisory service with regard to technological development, principally: a) advisory assistance with regard to the control and quality of fresh and processed foods; and b) technical assistance with regard to the development of appropriate new techniques;

- Training technicians in the various food professions; and - Providing for the preparation and dissemination of scientific and technical documentation

relating to its research activities.

d. Occupational Health and Safety:

The main legal instrument is the Labour Code (Law No. 97-17 of 1 December 1997). This instrument includes deals with, inter alia: the rights and duties of employees with regard to health and safety protection; the duties of employers (provision of health and safety information to employees, submission of annual health and safety reports, emergency and accident management, etc.); the functions of the Labour Inspectorate and of occupational health services within undertakings; and the provision of posts for disabled workers

4.3.4 International Agreements

Senegal is a signatory to several international agreements related to environmental protection of which the following are relevant to the project:

Abidjan Convention relating to the co-operation in the field of coastal zones protection and development, as well as its protocol relating to the co-operation in pollution control in critical situation, which came into force in 1984;

The Vienna Convention and the Montreal Protocol on the substances depleting the ozone layer, ratified in 1993;

The Convention on Biodiversity, ratified in June 1994 International Convention on Desertification control in severely drought-stricken countries

and/or countries that are deeply affected by desertification in Africa; Convention on Climate Change, ratified in 1994.

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Senegal is also part to the major international human rights treaties specifically, the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights.

4.4 Institutional Framework

4.4.1 Ministry of Energy

In terms of laws governing the sector, the Ministry of Energy is responsible for preparing and implementing a general sector policy established by the President. The main missions it defines are to:

- Establish the sector's legislative and regulatory framework; - Develop the general sector policy, including the overall framework for tariffs; - Carry out global sector planning and set specific targets for electrification in a Plan

National d’Electrification (national electrification plan); and - Promote rural, peri-urban and urban electrification and (in collaboration with the ministry

responsible for finance) establish the government's contributions and loans for rural, peri-urban and urban electrification.

4.4.2 Regulation Commission of Energy Sector

The Regulation Commission of Energy Sector (CRSE), is an independent authority, created by Law n° 98-29 of 14 April 1998 on the electricity sector, amended by Law n°2002-01 of 10 January 2002. It has the following responsibilities:

- To promote rational development of available electricity supply; - To monitor the economic and financial balance of the electricity sector and preserve its

economic conditions; - To ensure conditions of financial viability of the companies in the electricity sector; - To promote competition and private sector participation; and to look after consumers'

interests.

4.4.3 Senegalese Rural Electrification Senegalese Agency

The Senegalese Rural Electrification Agency (Agence Senegalaise de l’Electrification Rurale – ASER) is the energy authority in rural areas. Its mission, in compliance with the requirements of Article 30 of Law n°98-29 of 14 April 1998, is to promote rural electrification by providing electricity sector companies and private individuals with the technical and financial assistance required to support their initiatives in the private sector.

ASER develops rural electrification programs on the basis of a plan established by the ministry responsible for energy. ASER's aim is to promote rural electrification by providing electricity sector companies and private individuals with the technical and financial assistance required to support their initiatives in the private sector.

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4.4.4 Ministry of the Environment, Protection of Nature, the Retention Basin and Artificial Lakes

The Ministry of Environment and Nature Protection is responsible for natural resource management activities (forests, wildlife) and environmental protection in all sectors of activity (pollution and nuisance control, ecosystem preservation and so on.). The Ministry is responsible for insuring that all other ministries comply with the environmental code.

The ministry includes four directorates that are responsible for the implementation of environmental policy; the Directorate of National Parks (DPN), the Directorate of Environment and Classified Establishments (DEEC), the Directorate of Water, Forests, Hunting and Soil Conservation (DEFCCS), and the Directorate of water retention basins and artificial lakes (DBRLA).

As mentioned in the legal framework, the Decree No. 2009-545 June 5, 2009 presents the attributes and powers of the Minister of the Environment, the Protection of Nature, the Retention basins and artificial lakes.

Under the authority of the Prime Minister, the Minister of the Environment, Protection of Nature, the Retention Basins and Artificial Lakes prepares and implements the policy defined by the President of the Republic in the fight against pollution and protection of nature, fauna and flora, as well as in the field of artificial lakes and retention basins.

Technical Committee of Environment

The Technical Committee of Environment (TCE) is a unit of administration and management of the study of the environmental impact. It supports the Department of the Environment. Secretariat is provided by Directorate of environment and classified institutions. It has the following functions:

Ensure the taking into account of the environmental dimension in the projects of development;

Administer the environmental assessment process; Advice to the Minister of Environment about responsibilities and obligations under the Act; Promote public participation in the environmental assessment process; Coordinate the consultation between all units involved in the process of the environmental

study; Oversee the application procedures and the compliance of all the projects that require it; Ensure the integrity and the efficiency of the process; Evaluate the quality of environmental impact assessment reports and the compliance report

and the environmental impact assessment process in the terms of reference; Formulate a notice on all projects subject to the impact study on the environment; Ensure the implementation of the recommendations; Promote the adoption of good practices in the field of evaluation environmental; and Promote research on environmental assessments.

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4.4.5 Municipalities

The municipalities have very few prerogatives concerning land affairs. In Senegal, there is no concept of a public or private municipal land domain.

Law 96-07 presented the following principles:- Municipalities can intervene over the land belonging to the State for the development of

infrastructure, facilities, and services for the community; - Municipalities have the right to use the land belonging to the State; the land is allocated to

the municipality to serve as a base for infrastructure; however the land still belongs to the State;

- “Lotissements” in urban areas are owned by the State; and- Land Attribution Committees, in charge of the attribution of plots, are headed by the

Mayors.

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Environmental PoliciesOP/BP 4.01 Environmental AssessmentOP/BP 4.04 Natural HabitatOP/BP 4.09 Pest Management OP/BP 4.11 Cultural Property OP/BP 4.36 ForestOP/BP 4.37 Safety of Dams

Social PoliciesOP/BP 4.10 Indigenous PeopleOP/BP 4.12 Involuntary Resettlement

Legal PoliciesOP/BP 7.50 International WaterwaysOP/BP 7.60 Projects in Disputed Areas

5. World Bank Safeguard Policies

To ensure the social and environmental sustainability of the projects, the World Bank developed its Safeguard Policies, divided in environment, social, and legal areas. The World Bank also has a Public Disclosure Policy that is cross-cutting and applies to all the Safeguards Policies. The Safeguard Policies pursue three objectives: (i) ensuring that environmental and social issues are evaluated in the preparation and decision-making process; (ii) reducing and mitigating the environmental and social risks of Bank-financed programs or projects; and (iii) providing mechanisms for consultation and information disclosure.

In accordance with the Trust Fund agreements, GVEP will comply with the World Bank Safeguard Policies during the implementation of the Project and of each subproject funded under the ESME Trust Fund. A complete description of the World Bank’s safeguards and their triggers can be found on the Bank’s official Web site (www.worldbank.org).

Figure N° 6: World Bank Safeguard Policies

Source: World Bank, Safeguard Policies.

OP 4.01 Environmental AssessmentThe policy’s objective is to ensure that Bank-financed projects are environmentally sound and sustainable, and that decision-making is improved through appropriate analysis of actions and of their likely environmental impacts (OP 4.01, para. 1). This policy is triggered if a project is likely to have potential (adverse) environmental risks and impacts in its area of influence. OP 4.01 covers impacts on the natural environment (air, water and land); human health and safety; physical cultural resources; and transboundary and global environment concerns. Social aspects (involuntary resettlement, indigenous peoples) as well as natural habitats, pest management, forestry, and safety of dams are covered by separate policies with their own requirements and procedures.

Consultations: OP 4.01 also describes the consultation requirements for (i) A and B projects and (ii) sub-projects categorized as A and B. The borrower consults project-affected groups and local nongovernmental organizations (NGOs) about the project's environmental aspects and takes their views into account. The borrower initiates such consultations as early as possible. The Borrower provides relevant information in a timely manner prior to consultation and in a form and language accessible to the groups being consulted. The Borrower makes the EA report available in country in a

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local language and at a public place accessible to project-affected groups and local NGOs prior to appraisal.

. The project triggers OP 4.01 and thus has required the preparation of this ESMF. The grant will support the minor construction works related to energy generation and distribution, e.g., installation of solar PV systems, connection to the grid. The negative impacts are expected to be relatively small, site-specifi, and easily mitigated.

OP 4.04 Natural Habitats Bank-supported projects must avoid significant conversion or degradation of any critical natural habitats. The conservation of natural habitats is essential to safeguard their unique biodiversity and to maintain environmental services and products for human society and for long-term sustainable development. The Natural Habitats Policy is triggered by any project or subproject with the potential to cause significant conversion (loss) or degradation of natural habitats, whether directly (through construction) or indirectly (through human activities induced by the project).

The Energy SME project will not finance any activities impacting natural habitats and therefore this policy is not triggered.

OP 4.09 Pest Management The objective of this policy is to (i) promote the use of biological or environmental control and reduce reliance on synthetic chemical pesticides by ascertaining that pest management activities in Bank-financed operations are based on integrated approaches (Integrated Pest Management (IPM) in agricultural projects and Integrated Vector Management (IVM) in public health projects), and (ii) strengthen capacity of the country’s regulatory framework and institutions to promote and support safe, effective and environmentally sound pest management.

The project triggers this policy because some of the envisaged agricultural sub-projects in Senegal plan to substantially increase their cultivated area. It can be expected that pesticide use is likely to increase proportionally. Though it is not expected that the grant will finance the purchase of pesticides directly, it may have a negative indirect impact through the increased use of pesticides. The sub-projects that answer Part D, question 33 of the environmental and social screening sheet positively will have to prepare and implement a mini Pest Management Plan (See Annex 1)

OP 4.11 Physical Cultural ResourcesThe objective of this policy is to protect physical cultural resources which could be potentially affected by project activities The Bank assists countries to avoid or mitigate adverse impacts of development projects on physical cultural resources (PCR). In case of discovery of cultural heritage or archeological finds, a chance find procedure will be triggered and implemented which will include: (i) delineate and secure the discovered site or area, (ii) an assessment of the resources by the competent authorities, and (iii) either exclude the site from project activities or prepare and implement a Physical Resources Management Plan.

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Though the potential grantees are businesses with established sites/areas of operation, this policy is triggered because some proposed activities include minor construction works which might impact PCR.

OP 4.12 Involuntary Resettlement The objective of this policy is to (i) avoid or minimize involuntary resettlement where feasible, exploring all viable alternative project designs, (ii) assist displaced persons in improving their former living standards, income earning capacity, and production levels, or at least in restoring them, (iii) encourage community participation in planning and implementing resettlement, and (iv) provide assistance to affected people regardless of the legality of land tenure.

This policy is not triggered because the project excludes any activity that will involve the new acquisition of land and/or loss or restriction of access to assets, income, or means of livelihood.

OP 4.10 Indigenous PeopleThe objectives of this policy ensure that development projects fully respect the dignity, human rights, economies and cultures of Indigenous Peoples.

There are no Indigenous Peoples in the project area and therefore the project does not trigger this policy.

OP 4.36 ForestsThe objective of this policy is to assist borrowers to harness the potential of forests to reduce poverty in a sustainable manner, integrate forest effectively into sustainable economic development and protect the vital local and global environmental services and values of forests. The policy is triggered by whenever any Bank-financed investment project (i) has the potential to have impacts on the health and quality of forests or the rights and welfare of people and their level of dependence upon or interaction with forests; or (ii) aims to bring about changes in the management, protection or utilization of natural forests or plantations.

This project does not trigger OP 4.36 as it excludes any forestry activity.

OP 4.37 Safety of DamsThis policy is triggered when the Bank finances (i) a project involving construction of a large dam (15 m or higher) or a high hazard dam (see note), or (ii) a project which is dependent upon an existing dam. As such, the project does not trigger this policy.

OP 7.50 Projects on International WaterwaysThe aim of this policy is to ensure that Bank-financed projects affecting international waterways would not affect: (i) relations between the Bank and its Borrowers and between states (whether members of the Bank or not), and (ii) the efficient utilization and protection of international waterways. Beneficiary state must formally notify the other riparians of the proposed project and its details. This project will not finance activities on international waterways and thus doesn’t trigger this policy.

OP 7.60 Projects in Disputed AreasIn cases where a borrower’s Bank financed project is located in a disputed area, this policy aims to ensure that the other claimants to the disputed area have no objection to the project or special circumstances of the case support the Bank’s financing the project notwithstanding any objection or lack of approval by the other claimants. The project will not finance activities in in disputed areas and thus this policy is not triggered.

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Access to InformationWhenever the Bank requires an environmental assessment (EA), the proposed borrower prepares an EA report as a separate, free-standing document. The EA report is publicly available (a) after the borrower has made the draft EA report available at a public place accessible to project-affected groups and local NGOs in accordance with OP/BP 4.01, Environmental Assessment, and (b) after such EA report has been officially received by the Bank, but before the Bank begins formal appraisal of the project. The PREMs will make the draft environmental assessment report available at a public place accessible to project-affected groups and local NGOs and submit a copy to GVEP for forwarding to the Bank (the Bank will make it public through the World Bank’s InfoShop). In case the grant applicant objects to the Bank’s releasing an EA report through the InfoShop, GVEP will stop processing the subproject.

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6. Environmental and Social Impacts of the Senegal Energy SME

6.1 Environmental and Social impacts

In general, the subprojects proposed in the ESME-S are not expected to have significant environmental negative impacts. The positive impacts are high in terms of the social benefits for the local communities and also for the environment reducing the use of fossil fuels and promoting clean renewal energy.

Table 2 - Proposed menu of investments by sector

Proposed type of energy upgrade

Other eligible investments in

related equipment and services.

Small-scale agriculture

Connection to the grid

Electric water pump

Poultry production Connection to the grid

GeneratorCold roomVentilation systemAutomatic feeders and drinking system

Dairy processing Installation of solar powered milk cooler tank

GeneratorCooling tankCold roomSolar cold roomBoilerFluid packing machine

Eco-tourism Purchase and installation of solar PV system

Solar air conditioningSolar water pumpSolar fridgeWater pump Procurement of related services such as installation and initial operator training

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6.2 Potential Negative Impacts and associated mitigation measures

The proposed list of activities under the ESME-S project focuses on small-scale rural energy generation and distribution as well as the purchase of related sector-specific equipment. The negative environmental impacts from the proposed investments are expected to be minimal and easily mitigated. Table 3 lists the potential negative impacts and the associated mitigation measures.

Table 3 – ESME Senegal potential negative impacts and related mitigation measures

Activity Potential Negative Impacts Mitigation MeasuresConnection to the grid Construction:

Risk of electrocution from live wire

Clearance of vegetation for site preparation

In cases where there is an access road or a path between the transmission line and the farm, access by local communities may be temporarily blocked or restricted.

Risk of electrocution from direct contact with high-voltage electricity or from contact with tools, vehicles, ladders, or other devices that are in contact with high-voltage electricity.

Operation & Maintenance: Obstruction of right-of-

way(ROW) by tall trees and/or accumulation of vegetation could cause power outages through contact of branches with power lines, ignition of brush fires,

Construction: Ensuring that live-wire work is

conducted by trained workers with strict adherence to specific safety and insulation standards.

Where possible install distribution line above existing vegetation to avoid land clearing

Site distribution right-of-way to avoid trees, buildings and other structures that could interfere with the line’s installation, maintenance and operation.

Use of signs, barriers, and education/public outreach to prevent public contact with potentially dangerous equipment

Grounding conducting objects (e.g., fences or other metallic structures) installed near power lines to prevent shock.

Operation & Maintenance: Establish regular maintenance

of ROW through the use of mechanical weed control and/or by trimming tall trees. Vegetation control should not be excessive.

Installation of solar panels Installation: Risk of workers falling from or

through the roof Risk of falling objects Risk of electrocution when

wiring inverters Risk of solar panel fire due to

faulty wiring

Installation: Follow a risk management

approach by assessing hazards prior to commencing work and developing safe work procedures for installing solar panels including the manufacturer’s instructions,

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Increased risk of lightning strikes if system is not grounded

Operation & Maintenance: Risk of fire from exposed

wiring or from combustible material (e.g., tree branches) touching the panels

Chemical safety risk from improperly disposed broken solar panels

the General Health and Safety Guidelines (Annex 5) and local regulations.

Check the roof to make sure it can support the weight of the solar panels

Ensure that the wiring is undertaken by a licensed electrical contractor

Operation & Maintenance: Trim back vegetation to keep

area around the solar milk tank free of vegetation or combustible material that may fall on the solar panels.

Plan for periodic maintenance of the solar panels by a trained person (monitoring of wires is especially important as faulty wires may cause a fire).

Plan for proper handling and disposal if a panel breaks.

Purchase and installation of equipment

Installation: Clearance of vegetation to

install solar powered milk cooler tanks

Inconvenience to local communities or to suppliers due to improper siting of milk cooler tanks

Maintenance: Risk of fire from exposed

wiring or from combustible material (e.g., tree branches) touching the panels

Chemical safety risk from improperly disposed broken solar panels

Installation: Choose a site where vegetation

clearance will be minimal Discuss siting options for the

milk tanks with local communities and suppliers to secure broad consensus on the location of milk cooler tanks

Maintenance: Trim back vegetation to keep

area around the solar milk tank free of vegetation or combustible material that may fall on the solar panels.

Plan for periodic maintenance of the solar panels by a trained person (monitoring of wires is especially important as faulty wires may cause a fire).

Plan for proper handling and disposal if a panel breaks.

In addition to the mitigation measures proposed in Table 3, the World Bank Group’s Environmental, Health, and Safety (EHS) Guidelines will apply to the energy generation and distribution activities of the sub-projects. Specifically the relevant sections of the General EHS Guidelines for the management of construction site activities as well as the EHS Guidelines for Electric Power Transmission and Distribution (See Annex 5).

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Further, the ESMPs prepared by subprojects should be consistent with the relevant industry-sector EHS guidelines: EHS Guidelines for Annual Crop Production; EHS Guidelines for Poultry Production; EHS Guidelines for Dairy Processing; and EHS Guidelines for Tourism and Hospitality Development (Annex 5). It is important to remember that the industry-sector EHS guidelines are designed to be used in conjunction with the General EHS Guidelines document.

Should the PREMs seek financing under the ESME Trust Fund for Senegal for an activity or investment that is (1) outside of the current proposed menu of investments and (2) not on the exclusion lists presented in Chapter 7, GVEP will submit the proposal to the Bank (through the Task Team Leader) for non-objection. In the event that the proposed activity or investment is approved by the Bank, this ESMF will be revised, as needed, to include the potential negative impacts of the activity and propose adequate mitigation measures.

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7. Environmental Review Process

The overall purpose of this chapter is to present, on the basis of the national law and the Bank’s Safeguards Policies, the Environmental Review Process during the ESME-S implementation.

7.1 Environmental Screening Process

Screening. The first stage of the environmental review process involves environmental screening of subprojects to identify the environmental category (see section 6.4 below) and, when warranted, the extent of the environmental assessment for a subproject (see …). Each grant application will include a mandatory Environmental and Social Screening Form (ESSF) (Annex 1).

Each Grant Applicant completes the Part A of the ESSF (Annex 1). The environmental screening form will summarize the nature of the subproject. The assignment of the environmental risk category will be done GVEP with the support of an environmental consultant. GVEP will provide the Grant Applicant with an outline of content for Environmental and Social Management Plan (Annex 2). GVEP will also include an indicative timetable for the preparation of the ESMP, which should be integrated into the preparation of the subproject. The ESMP and its financing are the Grant Applicant's responsibility and the document should include a cost estimate for its implementation. GVEP, bringing in the expertise of an environmental consultant, can provide advice to the Grant Applicant on preparing the ESMP.

Consultation. In the case of Category B subprojects, the Grant Applicant consults project affected groups and local nongovernmental organizations (NGOs) about the subproject's environmental aspects during the environmental assessment process (before appraisal and approval of a subproject by GVEP) and takes their views into account. The Grant Applicant initiates such consultations as early as possible. The PREM provides any relevant material in a timely manner prior to consultation and in a form and language that are understandable and accessible to the groups being consulted. GVEP describes the consultation requirements in Part B of the environmental screening form.

Disclosure. In addition, the Grant Applicant has to make the draft environmental assessment report available at a public place accessible to project-affected groups and local NGOs and submit a copy to GVEP for forwarding to the Bank (the Bank makes it public through the World Bank Infoshop). Public availability in Senegal and official receipt by the Bank of any Category B ESMP for proposed subprojects are prerequisites to GVEP’s appraisal of these projects. GVEP describes the disclosure requirements in Part B of the ESSF. If the Grant Applicant objects to the Bank's releasing an ESMP through the Bank InfoShop, GVEP staff stop processing the subproject. As mentioned in the national law, it is important that all people likely to be affected by the subproject are consulted regarding their concerns. Information regarding all project activities within the subproject cycle (planning

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implementation, decommissioning), materials to be used, products, waste and waste disposal, economic and social benefits should be provided. The views of the public on all these activities should be incorporated in the subproject report.

The Bank’s public participation and disclosure policies apply to the ESMP that the sub-projects will develop. The Safeguards instruments developed by the subprojects should be disclosed to the public. Grant Applicant could disclose the safeguards instruments at the local library, city hall and/or GVEP’s web site.

Environmental clearances. Before approving a subproject, GVEP verifies (through its own staff, outside experts, or existing environmental institutions) that the subproject meets the environmental requirements of the national and local authorities in Senegal and is consistent with the Operational Guidelines of the Project (based on the Bank's environmental requirements, OP 4.01 and other applicable environmental policies of the Bank). GVEP will record whether and what kind of clearances from the environmental authorities are needed and dates received. After review and upon receipt of clearances from the environmental authorities, GVEP provides formal clearance of the environmental aspects of the project.

Supervision. GVEP will record supervision activities in Part B of the ESSF under next steps. During subproject implementation, the Grant Recipient reports on (a) compliance with measures agreed with GVEP on the basis of the findings and results of ESSF, including implementation of an ESMP where applicable; (b) the status of mitigatory measures; and (c) the findings of monitoring programs.

7.2 Environmental Screening Categories

Screening Categories. The proposed subprojects are classified into one of 3 categories, depending on the type, location, sensitivity and scale of the subproject and the nature and magnitude of its potential environmental impacts. The three categories are A - High Risk, B - Intermediate Risk and C - Low Risk. Subprojects which are classified in Category B or C are eligible for financing under the Project. Subprojects classified in Category A are not eligible for financing under the project.

(a) Category A (High Risk): A proposed subproject is classified as Category A if it is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. Category A subprojects are not eligible for financing under the project.

(b) Category B (Intermediate Risk): A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas-including wetlands, forests, grasslands, and other natural habitats 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 mitigatory measures can be designed more readily than for Category A projects. The scope of environmental assessment for a Category B project may vary from project to project (See section 7.4). Environmental assessment examines the project's potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve

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environmental performance. The findings and results of Category B environmental assessment are described in the subproject documentation. Public consultation and disclosure procedures must be followed for Category B subprojects.(c) Category C (Low Risk): A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Beyond screening, no further environmental assessment action is required for a Category C project.

Negative list of sub-projects. The following activities and investments will not be financed under the project:

1. Abattoirs2. Incinerators3. Irrigation schemes4. Forestry projects5. Projects affecting critical natural habitats6. Dams7. Roads8. Solid Waste Management

Ineligible projects under any World Bank financed project. In addition to Category A and the negative list of activities under this Project, the following activities are not eligible for financing under any Bank-financed project:

1. Production of tobacco products;2. Production of lead paints;3. Sale of live nature and life nature products, banned by CITES Convention on trading wild fauna and flora species endangered to extinction (Washington, 1973);4. Introduction of genetically engineered organisms;5. Production, dissemination and sale of illegal pesticides;6. Usage of floating nets when fishing; 7. Any activity with the use of radioactive materials;8. Activity with the use of production and utilization of products containingchlorofluorocarbons (CFC) and other materials prohibited by Montreal Protocol on ozone depleting substances (Montreal, 1987);9. Production of electric products containing polychlorinated phenyls (PCB);10. Production and/or use of asbestos containing products.

7.3 Environmental and Social Management PlanThe PREM is required to prepare an ESMP for subprojects classified as Category B subprojects. The content of an ESMP is outlined in Annex 2. A subproject's ESMP consists of the set of mitigation, monitoring, and institutional measures to be taken during implementation and operation to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels. The plan also includes the actions needed to implement these measures. To prepare a management plan, the PREM and its environmental assessment team (a) identify the set of responses to potentially adverse

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impacts; (b) determine requirements for ensuring that those responses are made effectively and in a timely manner; and (c) describe the means for meeting those requirementsThe PREM is responsible for financing and implementing the ESMP. GVEP staff advise the PREM, as appropriate. During implementation, the PREM is required to report on the implementation of the ESMP or any other environmental aspects.

7.4 Steps in the Environmental Review Process – Procedures and Institutional arrangements.

Below is description of the mechanisms and responsibilities for environmental screening and review of environmental assessment results:

STEP 1: The Grant Applicant prepares an initial project concept. Following informal discussions with GVEP, in which GVEP alerts the Grant Applicant of its environmental assessment requirements, the Grant Applicant prepares Part A of the ESMF checklist (see Annex 1) and includes it with the initial project concept. At this time, it is the responsibility of the Grant Applicant to initiate discussions with the respective environmental authorities (if and when it starts it operation) to fulfill any local and regional environmental review requirements. It will be the responsibility of the Grant Applicant to obtain the appropriate permits and approvals that may be required by the authorities.

STEP 2: GVEP does the preliminary assignment of the environmental category and then confirms it though the support of an environmental consultant. GVEP then informs the Grant Applicant of the environmental screening category, possible need for an ESMP and subsequent follow-up requirements for grant processing. This information will be provided in Part B of the ESSF.

STEP 3: The Grant Applicant, or its consultants, prepare the ESMP, if requested by GVEP. GVEP can advise the Grant Applicant during the process of developing an ESMP (see annex 2). For category B subprojects, the Grant Applicant needs to follow the consultation and public disclosure requirements described by GVEP in Part B of the ESSF.

STEP 4: As needed, the Grant Applicant ensures that it has obtained the necessary permits, licenses, and clearances from the respective environmental protection authorities. Commissioning of a project is allowed only upon the completion of environmental measures envisioned by the project, as certified by relevant authorities. Once completed, GVEP reviews the environmental clearances, updates Part B of the ESSF and provides its clearance to the Grant Applicant to proceed with further preparation of the subproject.

STEP 5: The Grant Applicant incorporates the recommendations provided in the ESMP, if applicable, into the subproject design and implementation plan. For projects that do not require an ESMP, the subproject implementation plan should take into consideration simple mitigation measures and/or the relevant best practice guidelines (See Annex 5)

STEP 6: The Grant Applicant finalizes the grant application, including the relevant environmental documentation, and submits it to GVEP for its appraisal and decision. GVEP updates Part B of the ESSF. GVEP validates and signs the grant agreement. GVEP will

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include in the Grant Agreement, an environmental and social clause in order to ensure compliance with the ESMP, if required, or with general environmental and social best practices (See Annex 2 for outline of ESMP or Annex 5 for EHS Guidelines).

STEP 7: GVEP monitors the implementation of the ESMP, where applicable, on the basis of the quarterly subproject performance reports (See attachment to Annex 2; table B Monitoring Plan).

7.5 Roles and Responsibilities in the Environmental Review Process

a. Global Village Energy Partnership (GVEP)

GVEP is responsible for the environmental and social management of the ESME-S Trust Fund. The ESMF-S is the tool that GVEP will use to ensure the environmental and social sustainability of the grants and to ensure compliance with national environmental and social laws and with the World Bank Safeguard Policies. The responsibility of the ESMF implementation will be with the ESME-S Program Manager and his team.

GVEP is currently implementing ESME funded programs in Tanzania and Rwanda as part of existing World Bank funded programs, which are governed by safeguards frameworks. GVEP is supporting small hydro developers in both countries in the development of Environmental and Social Impact Assessments (ESIA) and ensuring full compliance of these projects with local law and Bank requirements. In Rwanda GVEP is also advising the Public Sector Foundation on the implementation of a program of support for OGL distributors which is financed by the Bank through the government of Rwanda.

GVEP has two members of staff with expertise in solar PV markets in east Africa, including knowledge of current options for battery disposal and environmental management in general. With regards to the environmental management these staff members will be the first point of contact for the applicants. Additional advice may be procured if required. US$ 30,000 will be set aside from the ESME grant for this task.

b. Ministry of Environment, Protection of Nature, Retention Basin & Artificial Lakes

The Ministry is responsible for natural resource management activities (forests, wildlife) and environmental protection in all sectors of activity. Grant Applicants should contact the deconcentrated services of the Ministry at the regional and/or local level to seek guidance on application of national environmental laws to their subproject and regulations that they need to follow. The deconcentrated services are responsible for ensuring compliance with national and local environmental regulations.

c. Grant Applicants

The Grant Applicant is the party responsible for developing and implementing the environmental and social studies should the subproject activities requires them. In case that the

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subproject requires an EIS or IEA, it should be prepared prior to the implementation of activities. GVEP will assist the applicants in the preparation of these documents if required and if requested to do so by the potential grantee.

GVEP will provide technical assistance to the developers for the implementation of the environmental and social measures by providing information for good environmental and social practices and providing additional technical expertise of specialized consultants if needed.

d. World Bank

The World Bank is responsible to supervise the implementation of Safeguards instruments during the ESME Trust Fund implementation.

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8. Summary of consultations

As mandated by OP 4.01, the overall objective of consultations is to ensure that the views of project stakeholders, especially project-affected communities, regarding the environmental and social aspects of the project are taken into consideration during the planning and design of the project.

GVEP’s regional office in Dakar, Senegal held consultations on an earlier draft version of this ESMF on February 13, 2013 and February 15, 2013 in Dakar and Tambacounda respectively. The consultations targeted potential grantees and the local communities where the businesses are implemented. GVEP presented the project’s concept and objectives as well as the way the project proposed to address environmental and social management considerations.

The main concerns raised by the stakeholders who attended the consultations were as follows:

The site sensitivity matrix included in the previous draft ESMF screening mechanism was hard to understand and to apply

Would GVEP provide technical support to the PREMs in filling out the screening sheet and other forms?

World Bank requirements vs. national laws and regulations: If a PREM meets local regulations, do the requirements under the WB safeguards policies still apply?

Lack of clarity around eligible activities/investments.

In order to address the concerns raised by stakeholders, the ESMF was revised and updated. The current version presents a new, simpler screening mechanism. The need to meet both the requirements of national law and of the WB Safeguards policies is better highlighted and incorporated in the screening process. In terms of technical support in carrying out the initial subproject screening and environmental assessment, GVEP will provide PREMs with the needed support through the help of a part-time environmental consultant. Finally, the inclusion of detailed exclusion lists will help GVEP and PREMs identify which activities in the proposed business plans can be financed under the ESME Senegal.

Minutes of the consultations and attendance sheets are included as an attachment to this document.

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ANNEXES

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Annex 1

Environmental and Social Screening Form – Initial Environmental

AssessmentPART A

NAME OF PROJECT

Subproject Name:

Subproject Location:

Community Representative and Address:

GVEP Representative and Address:

Site Selection:

When considering the location of a subproject, rate the sensitivity of the proposed site in the following table according to the given criteria. Higher ratings do not necessarily mean that a site is unsuitable. They do indicate a real risk of causing undesirable adverse environmental and social effects, and that more substantial environmental and/or social planning may be required to adequately avoid, mitigate or manage potential effects.

IssuesSite Sensitivity

RatingLow Medium High

Natural habitats

No natural habitats present of any kind

No critical natural habitats; other natural habitats occur

Critical natural habitats present

Water quality and water resource availability and use

Water flows exceed any existing demand; low intensity of water use; potential water use conflicts expected to be low; no potential water quality issues

Medium intensity of water use; multiple water users; water quality issues are important

Intensive water use; multiple water users; potential for conflicts is high; water quality issues are important

Application Number

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IssuesSite Sensitivity

RatingLow Medium High

Natural hazards vulnerability, floods, soil stability/ erosion

Flat terrain; no potential stability/erosion problems; no known volcanic/seismic/ flood risks

Medium slopes; some erosion potential; medium risks from volcanic/seismic/ flood/ hurricanes

Mountainous terrain; steep slopes; unstable soils; high erosion potential; volcanic, seismic or flood risks

Cultural property

No known or suspected cultural heritage sites

Suspected cultural heritage sites; known heritage sites in broader area of influence

Known heritage sites in project area

Involuntary resettlement

Low population density; dispersed population; legal tenure is well-defined; well-defined water rights

Medium population density; mixed ownership and land tenure; well-defined water rights

High population density; major towns and villages; low-income families and/or illegal ownership of land; communal properties; unclear water rights

Completeness of Subproject Application:

Does the subproject application document contain, as appropriate, the following information?

Yes No N/ADescription of the proposed project and where it is locatedReasons for proposing the projectThe estimated cost of construction and operationInformation about how the site was chosen, and what alternatives were consideredA map or drawing showing the location and boundary of the project including any land required temporarily during constructionThe plan for any physical works (e.g. layout, buildings, other structures, construction materials)Any new access arrangements or changes to existing road layoutsAny land that needs to be acquired, as well as who owns it, lives on it or has rights to use it [New land acquisition excludes the sub-project from financing]A work program for construction, operation and decommissioning the physical works, as well as any site restoration needed afterwardsConstruction methodsResources used in construction and operation (e.g. materials, water, energy)Information about measures included in the subproject plan to avoid or minimize adverse environmental and social impactsDetails of any permits required for the project

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Environmental and Social Checklist

Yes No CommentsA Type of activity – Will the subproject:1 Support animal husbandry or processing?2 Involve the construction or rehabilitation of any small dams,

weirs or reservoirs?

3 Support irrigation schemes?

4 Support rural water supply and sanitation schemes?5 Build or rehabilitate any rural roads?6 Involve solid waste management?

7 Involve community forestry?

8 Involve small-scale aquaculture?9 Involve leather processing?10 Involve food processing?11 Involve community healthcare facilities and the management

of healthcare waste?

12 Build or rehabilitate any structures or buildings?13 Support agricultural activities?14 Be located in or near an area where there is an important

historical, archaeological or cultural heritage site?15 Be located within or adjacent to any areas that are or may be

protected by government (e.g. national park, national reserve, world heritage site) or local tradition, or that might be a natural habitat?

16 Depend on water supply from an existing dam, weir, or other water diversion structure?If the answer to any of questions 1-16 is “Yes”, please refer to the ESMF for guidance on proposed activity’s eligibility under the project and on how to avoid or minimize typical impacts and risks.

B Environment – Will the subproject:17 Risk causing the contamination of drinking water?18 Cause poor water drainage and increase the risk of water-

related diseases such as malaria or bilharzia?19 Harvest or exploit a significant amount of natural resources

such as trees, fuel wood or water?20 Be located within or nearby environmentally sensitive areas

(e.g. intact natural forests, mangroves, wetlands) or threatened species?

21 Create a risk of increased soil degradation or erosion?22 Create a risk of increasing soil salinity?23 Produce, or increase the production of, solid or liquid wastes

(e.g. water, medical, domestic or construction wastes)?24 Affect the quantity or quality of surface waters (e.g. rivers,

streams, wetlands), or groundwater (e.g. wells)?

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Yes No Comments25 Result in the production of solid or liquid waste, or result in

an increase in waste production, during construction or operation?If the answer to any of questions 17-25 is “Yes”, please consult the ESMF and determine the extent of the impacts with the help of an environmental specialist. Category A type impacts would exclude the sub-project or activity from financing. For Category B type impacts, please include an Environmental Management Plan (EMP) with the subproject application.

C Land acquisition and access to resources – Will the subproject:26 Require that land (public or private) be acquired (temporarily

or permanently) for its development?27 Use land that is currently occupied or regularly used for

productive purposes (e.g. gardening, farming, pasture, fishing locations, forests)

28 Displace individuals, families or businesses?29 Result in the temporary or permanent loss of crops, fruit trees

or household infrastructure such as granaries, outside toilets and kitchens?

30 Result in the involuntary restriction of access by people to legally designated parks and protected areas?It the answer to any of the questions 26-29 is “Yes”, please consult the ESMF. The sub-project would not be eligible for financing.

D Pesticides and agricultural chemicals – Will the subproject:33 Involve the use of pesticides or other agricultural chemicals,

or increase existing use?If the answer to question 33 is “Yes”, please consult the ESMF and, if needed, prepare a Pest Management Plan (PMP).

E Dam safety – Will the subproject:34 Involve the construction of a dam or weir?35 Depend on water supplied from an existing dam or weir?

If the answer to question 34 is “Yes”, the sub-project is not be eligible for financing. If the answer to question 35 is “Yes”, please consult the ESMF.

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PART B

Environmental Screening Category: A____ [Excluded] B____ C____

Environmental Management Plan Required? YES____ NO____

* Environmental issues apparent at screening: What environmental issues are raised by the project? Reason for screening category? Reasons for request for a specific environmental assessment and the estimated cost?

* Terms of Reference for EMP to be prepared: Indicate briefly,scope, time frame, and approximate cost of EMP implementation.

* Compliance with national, regional, and local environmental laws:

* Community participation requirements: List any requirements under national or locallaws for the subproject sponsor to inform, consult or involve the public, NGOs, etc.

* List the Bank's disclosure requirements.

* Next Steps: List actions for GVEP, the borrowing enterprise, theenvironmental consultant (e.g., clearances required).

GVEP representative: DATE:

Environmental Screener: DATE:

Signatures:

CERTIFICATION

We certify that we have thoroughly examined all the potential adverse effects of this subproject. To the best of our knowledge, the subproject plan as described in the application and associated planning reports (e.g. EMP, PMP), if any, will be adequate to avoid or minimize all adverse environmental and social impacts.

Grant Applicant (signature): ………………………………………….……………

GVEP representative (signature): ……………………………………………………

Date: …………………………………………………

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Annex 2

Outline of an Environmental Management Plan

1. A project's environmental management plan (EMP) consists of the set of mitigation, monitoring, and institutional measures to be taken during implementation and operation to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels. The plan also includes the actions needed to implement these measures. Management plans are essential elements of environmental assessment reports for Category B projects. To prepare a management plan, the borrower and its environmental assessment design team (a) identify the set of responses to potentially adverse impacts; (b) determine requirements for ensuring that those responses are made effectively and in a timely manner; and (c) describe the means for meeting those requirements. More specifically, the environmental management plan includes the following components.

Mitigation

2. The environmental management plan identifies feasible and cost-effective measures that may reduce potentially significant adverse environmental impacts to acceptable levels. The plan includes compensatory measures if mitigation measures are not feasible, cost-effective, or sufficient. Specifically, the plan:

(a) identifies and summarizes all anticipated significant adverse environmental impacts;(b) describes - with technical details - each mitigation measure, including the type of impact to which it relates and the conditions under which it is required (e.g., continuously or in the event of contingencies), together with designs, equipment descriptions, and operating procedures, as appropriate; (c) estimates any potential environmental impacts of these measures; and(d) provides linkage with any other mitigation plans (e.g., for cultural property) required for the project.

Monitoring

3. Environmental monitoring during project implementation provides information about key environmental aspects of the project, particularly the environmental impacts of the subproject and the effectiveness of mitigation measures. Such information enables the PREM and GVEP to evaluate the success of mitigation as part of project supervision, and allows corrective action to be taken when needed. Therefore, the environmental management plan identifies monitoring objectives and specifies the type of monitoring, with linkages to the impacts assessed in the environmental assessment report and the mitigation measures described in the environmental management plan.Specifically, the monitoring section of the environmental management plan provides:(a) a specific description, and technical details, of monitoring measures, including the parameters to be measured, methods to be used, sampling locations, frequency of measurements, detection limits (where appropriate), and definition of thresholds that will signal the need for corrective actions; and

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(b) monitoring and reporting procedures to (i) ensure early detection of conditions that necessitate particular mitigation measures, and (ii) furnish information on the progress and results of mitigation.

Capacity Development and Training

4. To support timely and effective implementation of environmental project components and mitigation measures, the environmental management plan draws on the environmental assessment's assessment of the existence, role, and capability of environmental units on site or at the agency and ministry level. If necessary, the environmental management plan recommends the establishment or expansion of such units, and the training of staff, to allow implementation of EA recommendations. Specifically, the environmental management plan provides a specific description of institutional arrangements-who is responsible for carrying out the mitigatory and monitoring measures (e.g., for operation, supervision, enforcement, monitoring of implementation, remedial action, financing, reporting, and staff training). To strengthen environmental management capability in the agencies responsible for implementation, most environmental management plans cover one or more of the following additional topics: (a) technical assistance programs, (b) procurement of equipment and supplies, and(c) organizational changes.

Implementation Schedule and Cost Estimates

5. For all three aspects (mitigation, monitoring, and capacity development), the environmental management plan provides (a) an implementation schedule for measures that must be carried out as part of the project, showing phasing and coordination with overall project implementation plans; and (b) the capital and recurrent cost estimates and sources of funds for implementing the environmental management plan. These figures are also integrated into the total project cost tables.

Integration of Environmental Management Plan with Project

6. The borrower's decision to proceed with a project, and the Bank's decision to support it, are predicated in part on the expectation that the environmental management plan will be executed effectively. Consequently, the Bank expects the plan to be specific in its description of the individual mitigation and monitoring measures and its assignment of institutional responsibilities, and it must be integrated into the project's overall planning, design, budget, and implementation. Such integration is achieved by establishing the environmental management plan within the project so that the plan will receive funding and supervision along with the other components.

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Attachment to Annex 2

Environmental Management Plan Format

A. Mitigation Plan

Cost Institutional Responsibility Comments (e.g., secondary impacts)

Phase Environmental impact

Mitigation Measure

Install Operate Install Operate

Construction/InstallationOperation

Decommissioning

B. Monitoring Plan

Cost Responsibility

Phase Whatparameter is to be monitored?

Whereis the parameter to be monitored?

Howis the parmeter to be monitored/type of monitoring equipment?

Whenis the parameter to be monitored/ frequency of measurements or continuous?

Why is the parameter to be monitored (optional)?

Install Operate Install Operate

Baseline

Construction/Installation

Operation

Decommission

1

Annex 3

GUIDELINES FOR A PEST MANAGEMENT PLAN

1. Introduction

A pest management plan (PMP) is based on field evaluations of local conditions, and is best conducted by appropriate technical specialists with experience in participatory IPM. It determines whether current or proposed use of pesticides is justified under an IPM approach, and whether it is economic. Above all, a PMP emphasizes support for good, sustainable agricultural practice rather than mere compliance with pesticide management regulations.

A PMP identifies the main pest problems and their contexts (ecological, agricultural, public health, economic, and institutional), and develops specific operational plans to address these problems. Hazards associated with the transport, storage, handling, use and disposal of pesticides are identified and assessed. Measures are provided to reduce these hazards to a level that can be managed by the users of the products concerned. A PMP also includes procedures for screening pesticides.

These guidelines provide background information, and guidance, for preparing a PMP. They are addressed primarily at activities where there may be significant issues of pest management and pesticide use. At the same time, even a small, community-based project that might involve more modest need for pesticide use should prepare a PMP, in this case scaled appropriately to the nature of the subproject and its context.

Section 2 below outlines the elements of a PMP. Subsequent sections provide guidance on various aspects of IPM, risk management, and pesticide use.

2. Elements of a Pest Management Plan

Pest Management Approacha. Current and anticipated pest problems relevant to the project

Common pest problems and estimated economic impactb. Current and proposed pest management practices

Describe current and proposed practices, including non-chemical preventative techniques, biological and chemical control. Is optimum use being made of agro-ecosystem management techniques to reduce pest pressure and of available non-chemical methods to control pests? Do farmers and extension staff get sufficient information about IPM approaches that reduce reliance on chemical control?

c. Relevant IPM experience within the project area, country or regionDescribe existing IPM practices, projects/programs, research

d. Assessment of proposed or current pest management approach and recommendations for adjustment where necessary

Where the current or proposed practices are not consistent with the principles of an IPM approach, the discrepancies should be discussed and a strategy should be proposed to bring pest management activities into line with IPM.

Pesticide Management

a. Describe present, proposed and/or envisaged pesticide use and assess whether such use is in line with IPM principles.

Provide purpose of pesticide use, type of products used, frequency of applications, application methods. Is pesticide use part of an IPM approach and is it justified? Justification of pesticide use under the project should (a) explain the IPM approach and the reason why pesticide use is considered, (b) provide an economic assessment demonstrating that the proposed pesticide use would increase farmers' net profits, or, for public health projects, provide evidence that the proposed pesticide use is justified from the best available (preferably WHO-supported) public health evidence.

b. Indication of type and quantity of pesticides envisaged to be financed by the project (in volume and dollar value) and/or assessment of increase in pesticide use resulting from the project

c. Circumstances of pesticide use and the capability and competence of end-users to handle products within acceptable risk margins (e.g. user access to, and use of, protective gear and appropriate application equipment; users' product knowledge and understanding of hazards and risks; appropriateness of on-farm storage facilities for pesticides).

d. Assessment of environmental, occupational and public health risks associated with the transport, storage, handling and use of the proposed products under local circumstances, and the disposal of empty containers

e. Pre-requisites and/or measures required to reduce specific risks associated with envisaged pesticide use under the project (e.g.: protective gear, training, upgrading of storage facilities, etc.).

f. Selection of pesticides authorized for use, taking into consideration: (a) criteria in Section 5 below; (b) the hazards and risks (Section 7 below); and (c) availability of newer and less hazardous products and techniques (e.g. bio-pesticides, traps)

Monitoring and Supervision a. Description of activities that require local monitoring during implementationb. Description of activities that require monitoring during supervision visits (e.g. regarding

effectiveness of measures to mitigate risks; progress in strengthening regulatory framework and institutional capacity; identification of new issues or risks arising during implementation)

c. Monitoring and supervision plan, implementation responsibilities, required expertise and budget

3. What is Integrated Pest Management (IPM)?

IPM refers to a mix of ecologically-based pest control practices in order to reduce reliance on synthetic chemical pesticides. It involves:a) Managing pests (keeping them below economically damaging levels) rather than seeking to

eradicate them;b) Relying, to the extent possible, on non-chemical measures to keep pest populations low; andc) Selecting and applying pesticides, when they have to be used, in a way that minimizes adverse

effects on beneficial organisms, humans, and the environment.

Key to IPM is maintaining a healthy agro-ecosystem and making optimum use of its natural functions to suppress pest problems. Pesticides often destabilizes agro-ecosystems and should thus be used only when necessary and in a selective and judicious manner. Steps in responsible pest management include:a) Make better use of available agronomic techniques to avoid or reduce pest problems in the first

place.b) If pest problems occur, first look for solutions that address the causes of development of pest

populations.

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c) If an intervention becomes justified because crop damage reaches levels causing economic damage that is higher than the cost of pest control, select pest control practices that have the least impact on the agro-ecosystem such as crop selection, rotation and management; biological control (e.g. natural enemies, microbial control, insect traps, and selective use of pesticides.

d) If application of pesticides is justified, select products and application techniques that have the least impact on the agro-ecosystem.

4. Reducing Health and Environmental Risks from Pesticides

Efforts to reduce health and environmental risks are important because pesticides are toxic and have the potential to harm users, the public and the environment. Moreover, government regulatory schemes are often inadequate in offering protection, and pesticide users often do not have the necessary application equipment, protective gear and knowledge to manage the hazards associated with pesticide use. In general, IPM strategies should reduce reliance on chemical control and contribute to reducing health and environmental risks.

Groups that may encounter health problems as a result of exposure to pesticides include: Users/applicators; Bystanders and people living next to treated areas (drift); Farmers working in treated areas; Processors of treated crops; Pesticide distributors; Workers in the industrial plants of pesticide manufacturers/formulators; Pesticide storekeepers; Consumers of treated crops or contaminated water; and Consumers of dairy products from livestock fed with contaminated crops.

The main health and environmental risks are: Acute poisoning (death, light to severe sickness, respiratory problems, etc.); Chronic poisoning (cancer, birth defects, reproductive disorders, skin problems, impairment of

immune system capabilities, etc.); Water, soil and air contamination; Impact on non-target organisms, including aquatic organisms, birds and wildlife; and Impact on the diversity of animal and plant species in an area.

The main steps involved in reducing risks from pesticides are:a) Reduce pesticide use by making optimum use of non-chemical pest control methods;b) Where chemical control remains necessary, identify health and environmental risks;c) Carefully select products and application techniques to minimize impact on health and the

environment; andd) Design and implement risk reduction measures (see Section 7 below).

5. Screening Pesticides

The use of any pesticide should be based on an assessment of the nature and degree of associated risks, taking into account the intended users. With respect to the classification of pesticides and their specific formulations, the Bank refers to the World Health Organization's Recommended Classification of Pesticides by Hazard and Guidelines to Classification.

The Bank requires that the following criteria apply to the selection and use of pesticides: a) They must have negligible adverse human health effects.

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b) They must be shown to be effective against the target species.c) They must have minimal effect on non-target species and the natural environment. The methods,

timing, and frequency of pesticide application are aimed at minimizing damage to natural enemies. Pesticides used in public health programs must be demonstrably safe for inhabitants and domestic animals in the treated areas, as well as for personnel applying them.

d) Their use must take into account the need to prevent the development of resistance in pests.e) They do no fall in WHO classes IA and IB, or formulations of products in Class II, if (a) the

country lacks restrictions on their distribution and use; or (b) they are likely to be used by, or be accessible to, lay personnel, farmers, or others without training, equipment, and facilities to handle, store, and apply these products properly.

6. When is Pesticide Use Justified Under an IPM Approach?

In many cases, present levels of pesticide use are unnecessarily high, uneconomic and/or unsustainable. There often is a narrow focus on chemical control without considering available alternative non-chemical pest management techniques that are more sustainable. Determining the justification of pesticide use involves both technical and economic factors:

Technical justification: Is the proposed use part of an IPM approach? Economic justification: Will the proposed use have a positive effect on farmer profits that is

not offset by additional hidden and external costs?

Technical Justification

Justifying pesticide use under an IPM approach is best done by examining current practice and experience, and considers a variety of factors. Note that the justification of pesticide use under an IPM approach involves much more than safe handling and judicious use of pesticides.

Pesticide use can be considered to be in line with IPM principles if: Users are aware of non-chemical techniques to prevent or control pests, and understand the

ecological, health and economic risks of pesticide use. Various non-chemical methods of agro-ecosystem management are used to keep pest

populations low. Preventing pests and diseases is a major component of the strategy. Decisions to apply pesticides as supplementary control are made locally, are based on

monitoring of pest incidence, and are site-specific. Selection of pesticides is based on minimizing negative impact on the agro-ecosystem. Use of

non-conventional pest control practices (biological control, biopesticides, growth regulators, pheromones, etc.) is considered before considering application of conventional pesticides.

Judicious and selective use of pesticides is employed when compatible with other pest management practices or when other economically viable alternatives are not available, when damage or loss levels are exceeding thresholds, and other control methods have failed.

Application techniques are selected that minimize impact on the agro-ecosystem. Use of pesticides is economically justifiable in terms of having a positive effect on net farm

profits that is not offset by increased short and long term risks to health, environment or profit. Compared to present practices, proposed pesticide use diminishes the social costs of pesticide

use such as environmental and health costs.

Pesticide use is most probably not in line with IPM principles if: Pesticides are the single or primary means of pest management (including weed or rodent

control); Pest control schemes are based on calendar spraying rather than on scouting or monitoring for

pests.

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Input or rural credit packages obligate inclusion of chemical pest control. Centrally designed pest control schemes are followed that do not take into account local

conditions and seasonal variations. Pesticide use is likely to lead to long term dependency, pest resurgence, secondary pest

outbreaks or pest resistance. Farmers are not involved in taking decisions to apply pesticides. Pesticide distribution is free or subsidized. Persistent and/or non-selective pesticides are used, such as broad-spectrum pesticides, that

significantly affect non-target organisms and reduce the natural control capacity of the agro-ecosystem.

There is no economic analysis demonstrating the positive impact of pesticide use on farmers' net incomes.

There is no evidence demonstrating cost-effectiveness in terms of public health gains for pesticides used in disease vector control.

There are evident environmental contamination and health risks. Farmers receive advisory services from organizations that sell pesticides.

Economic Justification

Case studies indicate that, in developing countries, the external costs per unit of pesticide expenditure sometimes may be as high as the private costs. It is always important to ask:

What is the anticipated magnitude of economic damage caused by the pest problem? Is the assessment of damage based on accurate and representative field data? What are the direct and indirect costs of chemical pest control? What alternatives are available and how do the costs compare? Does the envisaged damage justify the expenditure?

It is important to consider the economics of pesticide use since there often is a tendency to focus solely on the technical issue of protecting a crop, without considering the costs and benefits. In many cases the economics of pesticide use are questionable, and pesticide use levels are often above their economic optimum. Moreover:

Negative environmental and social costs are often not considered. Indirect costs such as transport, storage, protective gear, application equipment and health

costs (doctors fees, medicine, loss of labor) are often not considered. Estimates of crop damage are often based on exaggerated extrapolations that are not supported

by accurate field data. The ability of plants to recover from damage is often overlooked. Crop damage is often expressed in loss of yield, instead of loss of farmer income. The economics of pesticide use are rarely compared to those of alternative approaches.

An assessment of the economics of pesticide use should, as much as possible, take into consideration the broad range of direct and indirect costs. The true cost of pesticide use includes both the private farm household costs and the social costs associated with damage and/or prevention. These can include hidden and external costs that are often difficult to determine.

Obvious private costs at the user's level: Cost of pesticides (farm gate price) Farmer's cost of transport, storage and disposal Cost of application (hired labor, opportunity cost of family labor, spraying equipment) Cost of protective gear and other risk reduction measures

Hidden private costs:

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Acute and chronic health effects of pesticide poisoning (medical treatment, labor productivity loss)

Reduction of beneficial organisms and other functions of the agro-ecosystem Build-up of on-farm pest resistance On-farm production loss due to negative side effects (crop damage due to pesticide drift; losses

in animal, honey bee, fish production) Decreased marketability of produce due to high pesticide residue levels

External costs: Health damage to the public through consumption of pesticide residues and exposure to

contaminated material Damage to natural resources (ground and surface water, natural habitats, biodiversity) Off-farm losses in crop and animal production Costs of preventative measures to avoid damage (e.g. residue monitoring and control in food

and water, avoidance of pesticide contamination) Regulatory control (pesticide registration, monitoring and law enforcement)

7. Identifying and Managing the Risks of Pesticides

Pesticides should have minimal effect on non-target species and the natural environment, and especially on predators of common pests that may affect the crop concerned. Ignoring this requirement may lead to further pest outbreaks with significant negative effect on yields and unnecessary increase in cost of chemical control. Factors relevant to a hazard/risk assessment are:

Health: Toxicity of the product, intensity of use, and mode of application User-knowledge about the product, its associated hazards and management of these hazards Trader/distributors knowledge about the product Availability of adequate and affordable protective gear, and its actual use Availability of appropriate application equipment Availability of appropriate storage facilities Disposal practices for leftover pesticides, empty containers and rinsing water by end-users Occupational safety and risk reduction methods for persons handling and using the product Risk of residues on treated food crops Risk of contamination of water resources

Environment: Impact on agro-ecosystem and beneficial non-target organisms (natural enemies of potential

pests, pollinators, ants, earth worms, fish, etc.) Impact on aquatic organisms and wildlife Risk of unintended exposure (drift, spills) Persistence of the product (half-life) Behavior and toxicity of break down products

General: Adequacy of regulations Institutional ability to implement/enforce regulations Risks of unauthorised use (product or use are not approved by local regulatory authority) Risks associated with transport and storage

Reducing the risk of pesticides involves the development of measures appropriate to the scale, type and context of their use. Typically, these will include:

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Use: Sufficient quantities of appropriate protective gear for pesticide users, taking into consideration

recommended replacement schedules Appropriate application equipment with spare parts Training in risk reduction including proper use of protective gear and proper application of

products Impact monitoring Where relevant, additional labels in the local language

Storage: Appropriate storage facilities (see below) Appropriate protective gear and materials for store keepers to handle emergencies Material Safety Data Sheets (product information with emergency instructions)

Treatment of poisoning: for products that may cause intoxication of users: Training of relevant medical staff in recognition and treatment of poisoning cases Antidotes for use at hospitals or health posts in the areas where the products may be used

Minimum requirements for a pesticide storage facility are: Impermeable floor; Adequate ventilation; Lockable door; Secured site; Location that does not pose specific health or environmental hazards (distance from homes,

schools and water); Managed by store-keeper with knowledge about hazards, and capable of handling leakage and

other emergencies; and Emergency materials and protective gear needed to deal with emergencies (including

emergency plan, Material Safety Data Sheets for products kept in store, fire extinguisher, emergency shower for staff).

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Annex 4Annex 4.1: Environmental Legal Framework in Senegal

Law No. 2001-01 of 15 January 2001. Code of the Environment (Legislative Part).

The establishment of an updated legal framework for the proper management of the environment is a major concern for the public authorities of Senegal. Law No. 83-05 of 28 January 1983 promulgating the Code of the Environment was drafted on the basis of well-defined priorities: Classified installations; Water pollution; Noise pollution; and Air pollution and disagreeable odors.

Its rather restrictive scope prevented it from taking into account all the fundamental elements of environmental protection and from constituting a basic text to serve as a framework law for Senegal. Moreover, the development of the national policy for the protection of environmental resources and the proliferation of international standards and principles endorsed by Senegal necessitated a recasting of the Code of the Environment. The following elements in particular may be cited as reinforcing the need for recasting and updating:

The implementation of the principles and measures set out in Agenda 21; The transfer of natural resource & environmental management skills to local authorities since 1996; The adoption of new strategic planning instruments; The adoption of new legal texts in 1997 and 1998 (the Forestry Code, Decrees implementing the

Water Code, the Petroleum Code, and the Marine Fisheries Code, etc.); The importance of impact assessments as part of the environmental decision-making process; The conformity of national law with international conventions signed and ratified by Senegal; and The taking into account of certain important principles in the field of environmental protection

(sustainable development, conservation, and sustainable use). In the light of the long-standing practice of administrations responsible for the environment, and in order to avoid any confusion in the application of legal texts, it is necessary for the Code that determines and guides environmental policy to be in conformity with all existing legislative texts.

The initial structure of the draft Code has been retained (four Titles) with internal readjustments in order to take account of important new elements and rebalance the content of certain Chapters. Thus:

Title I (General provisions) has been entirely remodeled and now comprises three Chapters dealing with definitions, basic principles, and environmental protection instruments.

Title II (Prevention and control of pollution and nuisances) has been retained in essence with six Chapters dealing with installations classified for the protection of the environment, human establishments, waste management, harmful and hazardous chemical substances, impact assessments, and emergency plans.

The system of two Classes has been retained for classified installations: the new proposal is to make Class I subject to the authorization system and Class II subject to the declaration system. Thus, the new declaration system for Class II installations will make it possible to lighten the examination procedure in so far as it will no longer be necessary to prepare an order, but rather a receipt of

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declaration signed by the Director of the Environment and Classified Installations. Compliance with the receipt requirement will be a substantial formality prior to the putting into service of Class II installations. The management of wastes and hazardous chemical substances is dealt with in separate Chapters, taking account of the international conventions to which Senegal is a party. Provisions relating to control and surveillance have been reinforced.

In the draft Code the Chapter on impact assessment lays down the general principles, leaving it to the Regulatory Part to determine the appropriate procedures and methods to be followed for all activities likely to cause direct or indirect damage to the environment.

Title III (Protection and enhancement of receiving media) comprises four Chapters: Water pollution, Air pollution and disagreeable odors, Pollution and degradation of the soil and subsoil, and Noise pollution. The content of the Chapters has been retained so as to constitute the reference framework for sectoral legislation and regulation (water, mines & quarries, hygiene, and transport).

Title IV (Sanctions and miscellaneous provisions) comprises three Chapters: Penal sanctions, administrative sanctions, and miscellaneous provisions."

Decree No. 2001-282 of 12 April 2001. Code of the Environment (Regulatory Part).

Made in pursuance of the Legislative Part of the Code of the Environment (see IDHL, 2004, 55, Sen. 04.003), this Decree provides for the regulation of the priority sectors of environmental management. It comprises the following Titles: I. Installations classified for the protection of the environment; II. Environmental impact assessment; III. Water pollution; IV. Water control; V. Air pollution; and VI. Noise pollution.

There are two Annexes: I. List of projects and programs for which a thorough Environmental Impact Study (Category 1); and II. List of projects and programs requiring an Initial Environmental Analysis (Category 2).

Ministerial Order No. 9470 of 28 November 2001. Establishing the conditions governing the granting of approval to carry out activities relating to environmental impact assessments.

Applications for approval are to be examined by a technical commission presided by the Minister responsible for the Environment or his representative. Details are given of the commission's composition and working procedures, the content of the files submitted for approval, and the conditions for granting approval.

Ministerial Order No. 9469 MJEHP-DEEC of 28 November 2001. On the organization and operation of the Technical Committee on the Environment.

Under Article R. 43 of Decree No. 2001-182 of 12 April 2001 promulgating the Code of the Environment (see IDHL, 2005, 56, Sen. 05.004), the Technical Committee is responsible for the administration and management of environmental impact assessments. It is to support the Minister responsible for the Environment through the performance of a number of functions. In particular, it is to: ensure that the environmental dimension is taken into account in development projects; manage the process of environmental impact assessment; advise the Minister on his responsibilities under the law; provide the public with the opportunity of participating in the environmental impact assessment process; promote cooperation between the various actors in the assessment process; issue an opinion on each project subject to environmental impact assessment; ensure that recommendations are observed;

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promote the adoption of good practices in the assessment process; and promote research in the field of environmental impact assessment.

Ministerial Order No. 9468 MJEHP-DEEC of 28 November 2001 regulating public participation in environmental impact assessment.

Public participation is an essential part of environmental impact assessment. It involves the public announcement of plans through display by the local authorities and/or written or oral press releases, the deposit of documents with the local authorities, the convening of an information meeting, the collecting of written and oral comments, negotiations where appropriate, and the drawing up of a report (Sec. 1). The Law promulgating the Code of the Environment (see IDHL, 2005, 56, Sen. 05.003) authorizes public participation at all stages of the environmental impact assessment of projects in order to improve decision-making (Sec. 2). Following the registration of a project, the Technical Committee is to disseminate information concerning the environmental impact assessment in progress, thereby allowing the public access to technical information and the opportunity to express opinions prior to decision-making (Sec. 3). The dissemination of information is the responsibility of the promoter and involves the participation of the Technical Committee and the local authorities. The rules governing public hearings are to be agreed by the parties concerned (Sec. 4). Upon reception of an environmental impact assessment report, the Technical Committee is to deposit a copy with the local authority concerned, which has 10 days to make its views known in writing (Sec. 5).

Ministerial Order No. 9472 MJEHP-DEEC of 28 November 2001 on the content of the environmental impact assessment report.

Under Sec. 1, the environmental impact assessment report is to include: a general or non-technical summary; an introduction setting out the broad outline of the report; an analysis of the initial state of the site and its environment (data on water, soil, flora, fauna, air, physic-chemical and biological conditions, and socioeconomic and cultural conditions); an assessment of the probable impacts (positive, negative, direct, indirect, and short-, medium-, or long-term cumulative) that the project is likely to leave in its wake; an analysis of the risks of technological accidents, safety measures, and emergency plan; an identification and description of measures to prevent, control, attenuate, and compensate for negative impacts; a framework environmental surveillance and monitoring plan; and a general conclusion dealing with the principal measures to be taken to limit or prevent the most significant negative effects and highlight the inadequacies likely to detract from the validity of the results obtained.

Ministerial Order No. 9471 MJEHP-DEEC of 28 January 2002 on the content of the terms of reference of environmental impact assessments.

The terms of reference of an environmental impact assessment are to include: a description of the environment in which the project is to be set up, with emphasis on the factors likely to give rise to cumulative effects; an evaluation of the effects on the environment of plans for, inter alia, the supply of water, energy, and raw materials; an analysis of the project's impact on local populations, natural resources, health, and cultural heritage; an evaluation of plans for the disposal of wastewater and solid waste and emission reduction; the identification of positive and negative impacts on the environment; an analysis of the prospects for environmental enhancement; a presentation of the legal and institutional framework, including environmental standards and the procedures for issuing licenses; an evaluation of the effects of provisions concerning the fixing of prices, fees, and subsidies having an effect on the environment; an evaluation of principal alternative solutions and the consequences of the outright rejection of the project; a list of measures concerning the protection and resettlement of the population groups affected; and a non-technical overview of principal recommendations.

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Annex 4.2: List of projects and programs that requires an EIS or IEA under Senegalese law

Appendix 1: List of projects and programs that requires an EIS (Category 1 projects)

1. The projects and programs that might cause changes important in the exploitation of renewable resources;

2. Projects and programs that deeply modify the practices used in agriculture and fishing;3. Exploitation of water resources;4. Infrastructure works;5. Industrial activities;6. Mining and extractive industries;7. The production or expansion of hydroelectric and thermal energy;8. The management and disposal of waste;9. The manufacture, transport, storage and use of pesticides or other hazardous and/or toxic;10. The hospital and educational facilities (large scale);11. The new construction or improvements of road network or rural roads;12. The projects undertaken in areas ecologically fragile areas protected;13. Projects that may have harmful effects on wildlife species and at risk or their critical habitat or

adverse consequences for biological diversity; and14. The transfer of populations (travel and resettlement);

Appendix 2: List of projects or programs that requires an IEA (Category 2)

1. Small and medium-sized agro-industrial enterprises;2. Rehabilitation or modification of existing industrial facilities of small scale;3. Electrical transmission lines;4. Irrigation and drainage of small scale;5. Renewable energy (other than hydroelectric dams);6. Rural Electrification;7. Projects, housing and trade;8. Rehabilitation or maintenance of highways and rural roads;9. Tourism;10. Rural and urban water supply and sanitation;11. Plants recycling and household waste disposal units;12. Irrigation projects ranging from 100 to 500 hectares, surface water and water underground ranging

from 200 to 1,000 hectares.13. Intensive farming of livestock (more than 50 heads), of poultry (more than 500 head);14. Extraction and processing of minerals, metal or energy-producing and aggregate (marble, sand,

gravel, shale, salt, potash and phosphate);15. Protected areas and conservation of biological diversity;16. Energy efficiency and energy conservation.

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Annex 4.3: Guidelines to prepare an Initial Environmental Analysis (Senegalese law)

A proponent shall prepare a project report stating:

a. The nature of the project;

b. The location of the project including the physical area that may be affected by the project's activities;

c. The activities that shall be undertaken during the project construction, operation and decommissioning phases;

d. The design of the project;

e. The materials to be used, products and by-products, including waste to be generated by the project and the methods of their disposal;

f. The potential environmental impacts of the project and the mitigation measures to be taken during and after implementation of the project (Environmental Management Plan - EMP);

g. An action plan for the prevention and management of possible accidents during the project cycle;

h. A plan to ensure the health and safety of the workers and neighboring communities;

i. The economic and socio-cultural impacts to the local community and the nation in general;

j. The project budget; and

k. Any other information the Authority may require.

In preparing a project report under this regulation, the proponent shall pay particular attention to the issues specified in the Second Schedule to these Regulations (Issues to be considered in Environmental Impact Assessment).

A project report shall be prepared by an environmental impact assessment expert registered as such under these Regulations.

A proponent shall submit at least ten copies of the project report to the Authority or the Authority's appointed agent in the prescribed form accompanied by the prescribed fees.

Where the project report conforms to the requirements of regulation, the Authority shall within seven days upon receipt of the project report, submit a copy of the project report to:

a. Each of the relevant lead agencies;

b. The relevant District Environment Committee; and

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c. Where more than one district is involved, to the relevant Provincial Environment Committee, for their written comments which comments shall be submitted to the Authority within twenty one days from the date of receipt of the project report from the Authority, or such other period as the Authority may prescribe.

On receipt of the comments or where no comments have been received by the end of the period of thirty days from the date of receipt of the project report, the Authority shall proceed to determine the Project Report.

On determination of the Project Report, the decision of the Authority, together with the reasons thereof, shall be communicated to the proponent within forty-five days of the submission of the project report.

Where the Authority is satisfied that the project will have no significant impact on the environment, or that the project report discloses sufficient mitigation measures, the Authority may issue a License in Form 3 set out in the First Schedule to the EIA Regulations.

If the Authority finds that the project will have a significant impact on the environment, and the project report discloses no sufficient mitigation measures, the Authority shall require that the proponent undertake an environmental impact assessment study in accordance with the EIA Regulations.

A proponent who is dissatisfied with the Authority's decision that an environmental impact assessment study is required within fourteen days of the Authority's decision appeal against the decision to the Tribunal in accordance with regulation 46 the EIA Regulations.

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Annex 5 – World Bank Group’s Environmental, Health, and Safety Guidelines.

General EHS Guidelineshttp://www1.ifc.org/wps/wcm/connect/554e8d80488658e4b76af76a6515bb18/Final%2B-%2BGeneral%2BEHS%2BGuidelines.pdf?MOD=AJPERES

French version:http://www1.ifc.org/wps/wcm/connect/00dbdb8048855b7588f4da6a6515bb18/010_General%2BGuidelines.pdf?MOD=AJPERES&CACHEID=00dbdb8048855b7588f4da6a6515bb18

Industry-sector EHS Guidelines

EHS Guidelines for Annual Crop Productionhttp://www1.ifc.org/wps/wcm/connect/077b7f004885533bae2cfe6a6515bb18/Final%2B-%2BAnnual%2BCrop%2BProduction.pdf?MOD=AJPERESFrench version: http://www1.ifc.org/wps/wcm/connect/ee432e80488555d7b864fa6a6515bb18/056_Annual%2BCrop%2BProduction.pdf?MOD=AJPERES

EHS Guidelines for Poultry Protectionhttp://www1.ifc.org/wps/wcm/connect/26baaf004886581fb43ef66a6515bb18/Final%2B-%2BPoultry%2BProduction.pdf?MOD=AJPERESFrench version: http://www1.ifc.org/wps/wcm/connect/37a7f68048855b6188ccda6a6515bb18/035_Poultry%2BProduction.pdf?MOD=AJPERES

EHS Guidelines for Dairy Processinghttp://www1.ifc.org/wps/wcm/connect/534a1a8048855373af34ff6a6515bb18/Final%2B-%2BDairy%2BProcessing.pdf?MOD=AJPERESFrench version: http://www1.ifc.org/wps/wcm/connect/7c4f9400488658d1b722f76a6515bb18/003_Dairy%2BProcessing.pdf?MOD=AJPERES

EHS Guidelines for Tourism and Hospitality Developmenthttp://www1.ifc.org/wps/wcm/connect/e9f48800488559c0840cd66a6515bb18/Final%2B-%2BTourism%2Band%2BHospitality%2BDevelopment.pdf?MOD=AJPERES&id=1323162543953French version: http://www1.ifc.org/wps/wcm/connect/75ddd28048855a0884ecd66a6515bb18/049_Tourism%2Band%2BHospitality%2BDevelopment.pdf?MOD=AJPERES&CACHEID=75ddd28048855a0884ecd66a6515bb18

Although this annex only provides links to the electronic copies of these guidelines, a hard copy of the guidelines should be attached to this ESMF when the document is disclosed in hard copy format.

The EHS guidelines are also available in French and the French version of the guidelines should be printed when disclosing ESMF locally in Senegal.

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