Environmental and Social Management Framework (Draft) for Ethiopian Sustainable Tourism Development Project

By Dr. Hailu Worku (Lead Consultant) Dr. Anteneh Shimelis (individual Consultant)

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Ministry of Culture and Tourism Federal Democratic Republic of Ethiopia

THE�FEDERAL REPUBLIC OF ETHIOPIA

Ministry of Culture and Tourism

Ethiopia - Sustainable Tourism Development Project- (ESTDP)

Environmental and Social Management Framework

March 11, 2009

E2095

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Contents List of acronyms.........................................................................................................................3 Executive Summary ...................................................................................................................4 1.  Introduction ........................................................................................................................7 2. Environmental and social attributes of tourism areas in Ethiopia........................................10 3.  Description of ESTDP’s areas of influence .....................................................................12 4.  Description of Ethiopia’s policies, legislations and legal regulatory frameworks...........13 5. Administrative arrangements (roles and responsibilities) to implement environmental policies and laws ......................................................................................................................20 6.  The World Bank Safeguard Policies ................................................................................25 7.  Methods and Techniques used in Assessing and Analyzing the Impacts ........................28 8.  Description of the Project.................................................................................................29 9.  Potential Social and Environmental Impacts of ESTDP Project......................................33 10.  Potential environmental and social mitigation measures ..............................................37 11.  Purpose of the ESMF ....................................................................................................38 12.  Monitoring of ESMF Implementation...........................................................................40 13.  Capacity Building and Training for Environmental Management................................41 14.  Recommendations ........................................................................................................42 Annex 1: Environmental and Social Management Paln (ESMP) for mitigating potential environmental and social problems of ESTDP during implementation.................................466Annex 2: Proposed environmental and social screening form ..............................................488Annex 3: Environmental and Social Checklist ......................................................................566Annex 4: Environmental Guidelines for Contractors.............................................................577Annex 5: Terms of Reference for Environmental Impact Assessment..................................666Annex 6: Summary of the World Bank’s Safeguard Policies................................................711Annex 7: List of individuals/institutions contacted .................................................................75 Annex 8: Key References.........................................................................................................76 

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List of acronyms EPA Environmental Protection Authority ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESTDP Ethiopian Sustainable Tourism Development Project GOE Government of Ethiopia OP Operational Policy PCU Project Coordination Unit RPF Resettlement Policy Framework TESFA Tourism in Ethiopia Sustainable Future Alternatives

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Executive Summary 1. Recognizing the importance of the tourism industry for Ethiopia, the Ministry of Culture and Tourism, in collaboration with the World Bank, is determined to implement measures and operations to develop and support tourism. These measures shall be implemented at all levels, from the identification of the tourist destination areas to the marketing and promotion stage. 2. The objective is to support the country’s efforts to derive maximum benefit from national, regional and international tourism in view of tourism's impact on economic development and to stimulate private financial flows from the community and other sources into the development of tourism in the country. Particular attention is given to the need to integrate tourism into the social, cultural, environmental and economic life of the people. 3. In line with the above objective, the general purpose of the Ethiopia - Sustainable Tourism Development Project (ESTDP) is to enhance the quality and variety of tourism products and services in targeted destinations so as to increase tourist flows, incomes and jobs. The project is designed to support infrastructure investments and service improvements in Lalibela, Axum and Addis Ababa. Some of the proposed activities may cause some level of environmental and social adversities at the proposed destination sites. 4. It is the World Bank’s requirement to evaluate the potential adverse environmental and social impacts of all development projects that it considers to finance, and to carry out the appropriate level of environmental work consistent with OP 4.01 Environmental Assessment. As regards the ESTDP, the development of an Environmental and Social Management Framework (ESMF) is required because the actual locations and potential localized adverse environmental and social impacts of future investments could not be determined prior to the appraisal of the ESTDP. 5. The ESMF mainly is an environmental and social screening process that guides future project implementers in the identification, assessment, mitigation and monitoring of potential adverse environmental and social impacts at the planning state of a development project. To facilitate the screening process, the ESMF describes the steps 1-7 of the proposed screening process, and includes, among others, an Environmental and Social Screening Form (ESSF); Environmental Guidelines for Contractors; an Environmental and Social Checklist; a summary of the Bank’s Safeguard Policies, and an Environmental and Social Management Plan (ESMP). 6. In the process of developing the ESMF, the consultants carried out policy analyses and visited potential investment sites to make direct observations and consult stakeholders. The analysis of Ethiopian policies showed that recent policies, proclamations and conventions are important stepping-stones for the improvement of the environment. 7. In addition, observance of the World Bank’s Safeguard policies created an opportunity to bridge the gap between the Bank’s OP 4.01 which requires the screening for potential adverse environmental and social impacts of all proposed investments, and Ethiopia’s environmental policies which do not require environmental and social screening of small-scale investments. Therefore, to ensure that future investments under ESTDP are compliant with the Bank’s

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safeguard policies as well as Ethiopia’s relevant environmental legislation, the borrower has prepared the ESMF and will implement its provisions as appropriate. 8. The site visits helped to gather information useful to determine potential environmental and social adversities that may result due to the implementation of the ESTDP. The most important potential environmental impacts that were identified include soil erosion, loss of vegetation, noise pollution, dust pollution, and water pollution, thus triggering OP 4.01 Environmental Assessment. The potential negative social impacts include resettlement of a portion of the local inhabitants and some form of loss of livelihood, thus triggering OP 4.12 Involuntary Resettlement. Given that the ESTDP intends to improve cultural heritage sites, the project also triggered OP 4.11 Physical Cultural Resources. OP 7.50 Projects on International Waterways is not triggered by ESTDP because the planned investments will be made either in existing water supply systems or will be covered by an earlier notification process for water sector investments. 9. To help minimize or eliminate potential negative environmental and social impacts of the project, an environmental and social screening process is developed and provided in the ESMF. An Environmental and Social Screening Form (ESSF) has been developed to collect relevant site specific information and to recommend the appropriate level of environmental work based on the screening results for a given future investment. The ESSF is central to the screening process outlined in the ESMF and assisting in the decision making process. Based on the screening results, qualified personnel will assign the appropriate environmental category (A, B, C, FI) as per OP 4.01. The information gathered through the use of the ESSF must be evaluated by relevant authorities to determine which impact category best fits a given project activity in compliance with the Bank’s safeguard policies. This will ensure the project is implemented in accordance with the requirements of the World Bank as well as Ethiopia’s environmental policies and legislation. 10. The technical and management capacity to implement the provisions of the ESMF are weak at the local level. Qualified staff in environmental management is very limited even at the Federal and Regional levels. Therefore, availability of qualified and well-trained personnel is crucial to effective implementation of the ESMF for ESTD Project. Training is needed particularly for regional and local staff working in Tourism Development and Environmental Management sectors as well as for local government leaders and decision makers. The ESMF includes an environmental training program for relevant stakeholders with a focus on the need to analyze potentially adverse environmental and social impacts, to prescribe mitigation approaches and measures, and to prepare and supervise the implementation of management plans. This training should address such matters as community participation needs and methods; environmental analysis; with the use of environmental screening and other checklist, reporting; and subproject supervision and monitoring as well as the implementation of the environmental and social screening process outlined in the ESMF. 11. It is recommended that (a) The environmental training program is implemented prior to the commencement of the ESTDP activities to ensure that the relevant stakeholders are capable of implementing the environmental and social screening process outlined in the ESMF;

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(b) ESTDP coordinates its support for the provision of water supply and sanitation with the relevant municipalities and Regional Water Bureaus; (c) ESTDP attaches the Environmental Guidelines for Contractors to the bidding documents to ensure the application of environmentally and socially sustainable construction techniques.

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1. Introduction 1.1 Recognizing the importance of the tourism industry for Ethiopia, the Ministry of Culture and Tourism, in collaboration with the World Bank, is determined to implement measures and operations to develop and support tourism. These measures shall be implemented at all levels, from the identification of the tourist destination areas to the marketing and promotion stage. 1.2 The aim is to support the country’s efforts to derive maximum benefits from national, regional and international tourism in view of tourism's impact on economic development and to stimulate private financial flows from the community and other sources into the development of tourism in the country. Particular attention is given to the need to integrate tourism into the social, cultural, environmental and economic life of the people. 1.3 Specific tourism development measures shall aim at the definition, adaptation and development of appropriate policies at national, regional, and local levels. The national level policy development is already at the draft stage. Tourism development programs and projects shall be based on this policy. In this context, ESTDP will lay the ground for future developments in the tourism sector. 1.4 Tourism development requires among others working on the following four components: (a) Human resources and institutional development:o professional management development in specific skills and continuous training at

appropriate levels in the private and public sectors to ensure adequate planning and development;

o establishment and strengthening of tourism promotion centers; o education and training for specific segments of the population and public/private

organizations active in the tourism sector, including personnel involved in the support sector of tourism;

o cooperation and exchanges in the fields of training, technical assistance and the development of institutions;

(b) Product development:o identification of the tourism product, development of nontraditional and new tourism

products, adaptation of existing products including the preservation and development of cultural heritage, ecological and environmental aspects, management, protection and conservation of flora and fauna, historical social and other natural assets, development of ancillary services;

o promotion of private investment in the tourist industry, including the creation of joint ventures;

o provision of technical assistance for the hotel industry; o production of crafts of a cultural nature for the tourist market. (c) Market development:o assistance for the definition and execution of objectives and market development plans at

national, sub-regional, regional and international levels; o provision of support to gain access to services for the tourist industry such as central

reservation systems and air traffic control and security systems;

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o provision of marketing and promotional measures and materials in the framework of integrated market development plans and programmes and with a view to improved market penetration, aimed at the main generators of tourism flows in traditional and non-traditional origin markets as well as specific activities such as participation at specialized trade events, such as fairs, production of quality literature, films and marketing aids.

(d) Research and information:o improving tourism information and collecting, analyzing, disseminating and utilizing

statistical data; o Assessment of the socio-economic impact of tourism on the economies of the country

with particular emphasis on the development of linkages to other sectors in the country such as food production, construction, technology and management.

1.5 In line with such standard strategy, the Ministry of Culture and Tourism and the World Bank designed the Ethiopian Sustainable Tourism Development Project (ESTDP) targeting Lalibela, Axum and Addis Ababa. The general aim of the project is to enhance the tourism business generally in Ethiopia and the specific destination areas by investing on conservation of key resources and improvement/rehabilitation of service provision facilities. Achieving these targets is impossible with out causing some environmental and social negative changes. 1.6 To make the developmental outcomes of the project optimal and sustainable, an impact minimization mechanism and tool to assess the potential localized adverse environmental and social impacts of future investments must be in place before the implementation of the project. Towards this end, the Environmental and Social Management Framework (ESMF) has been prepared. The ESMF outlines an environmental and social screening process for future infrastructure investments to ensure that they are environmentally and socially sustainable and meet the requirements of the Bank’s safeguard policies. 1.7 The rationale for preparing the ESMF is that (i) the actual locations and potential localized adverse environmental and social impacts of future investments could not be determined prior to the appraisal of the ESTDP; and (ii) the Bank’s OP 4.01 requires the screening for potential adverse environmental and social impacts of all investments considered for Bank financing and carrying out of the appropriate level of environmental work based on the screening results – whereas Ethiopia’s environmental assessment procedure does not require the environmental and social screening of small-scale investments with unknown locations. 1.8 The most important outcome of this mission was the development of environmental and social screening process that will be used in the future by implementers of the sub-components of the ESTDP. This primarily requires determining the specific sub-components of the project and sub-projects that may potentially have adverse environmental and social impacts. The categories provided in the Bank’s OP 4.01 provide a framework for filtering anticipated project activities relative to attributes of sites that qualify as environmental and social issues of concern as per the Bank’s standards. 1.9 The first component of the project that aims to enhance the contribution of the tourism sector in Ethiopia through identification, conservation and improvements of tourist sites is identified as the most important project subcomponent with activity requirements that may potentially have environmental and social adverse impacts.

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1.10 The Ethiopian Government must be appreciated highly for enthusiastically perusing this tourism enhancement project that has made the concepts of conservation and proper management of the tourism resource base the center of the whole initiative. It is also very important to note that the explicit use of the country’s cultural/historical heritages and biophysical resources for the purposes of strengthening the budding private sector, creation of jobs and alleviation of poverty would have a country wide impact on the populace regarding the value of nature and the astounding physical structures built by the country’s ancestor’s. It is also highly commendable that the project intends to establish indigenous woodlots in and around the church sites in Lalibela. Without question, if appropriately implemented, the project will improve substantially the conservation and appropriate use of resources of tourist attraction in the country. When the potential environmental and social adverse impacts of this project are evaluated in this document, it is with full awareness of its positive conservation and economic contributions. 1.11 Despite being a very good initiative that must be implemented, it also has the potential to affect the environment and society negatively. The consultants assessed the potential problems in the field to generate information useful to flag the most important environmental and social impacts as objectively as possible. It must also be noted that an environmentally and socially responsible project must set the example to other development initiatives that frequently have serious negative impacts on the very resources that makeup the foundation of its business/economic initiatives. 1.12 The ESMF that the consultants were expected to develop not only identified the likely issues of concern, but also produced an environmental and social screening process that will be used to mitigate the undesirable effects of the project up on implementation. It is at the stage of planning of project subcomponents that detailed, quantified environmental and social data are prepared both for the purposes of impact assessment and prevention. Thus, the consultants were content with the short field time assigned to them on a single working day per site basis. They have tried to collect environmental and social information as much as possible, and the synthesis produced a watertight procedure that will enable implementers to avoid the potential environmental and social impacts of the project. 1.13 Although the project sites are Lalibela, Axum and Addis Ababa, the consultants visited Lalibela, Axum, Awash and Abjata Shala National Parks with the intention of producing a document that would have value for mitigation of potential negative impacts of the ESTDP. From the discussions the consultants held with key informants, some of the project planning team (including consultation of their draft reports) and our first hand site evaluation revealed a list of constraints that the project must tackle to deliver the goods and services anticipated/expected in its overall integrated development destination tourism plan. 1.14 The assessment generally identified the following constraints, which must be positively changed to enhance the contribution of the tourism sector to the economy at all scales: o Lack/shortage of international standard accommodations and may be some ‘modern’

communal facilities o Lack/poor condition of roads o Poor condition of cultural/religious heritages. 1.15 A process of removing these constraints will cause various types of environmental and social adversities. The consultants’ task has been to identify the causes of problems and

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anticipate the potential negative impacts that must be mitigated in the process of project implementation. There is no better argument for better environmental management than the enduring wondrous relics of Ethiopia’s past civilizations that undoubtedly collapsed as result of environmental crisis leaving us our current most important tourism attractions. Thus, it is to make the long-term contributions of the ESTDP sustainable, profitable and just that the consultants examined potential adverse environmental and social impacts and proposed mitigation measures.

2. Environmental and social attributes of tourism areas in Ethiopia 2.1 Natural habitats: The consultants’ definition of a natural habitat refers to any form of environmental component that constitutes life forms that are naturally interacting amongst themselves and their physical environment (Krebs 2001). Within the confines of this definition we recognized the following habitat types as existing across the proposed investment areas of the ESTDP. 2.1.2 Dry evergreen montane forest. This is a forest type that is found in the highlands of Ethiopia. It is dominated by tree species such as Juniperus procera and Olea africana. At Lalibela, particularly at Yimrhane Kiristos, this consultancy mission determined the existence of an intact forest in this category with species such as Acacia abyssinica that is disappearing in many of the highland forest areas across the country. The Yimrhane Kiristos forest and other similar habitats in Ethiopia provide homes to several endemic mammals and birds some of which are globally threatened. These habitat generally is highly threatened throughout the country mainly as result of the value of the defining tree species for construction and fuel purposes. In some of the tourist sites, such habitats enjoy some level of legal protection, but in others their survival mainly is result of the Christian belief that considers wooded yards of monasteries and churches as scared reflections of Adam’s and Eve’s Eden. It is because of such traditions cultivated and preserved by the Ethiopian Orthodox church that some highly valuable patches survived even in highly degraded urban sites. Such habitats have huge international importance for the conservation of global biodiversity (Williams et al. 2004) and bird conservation (EWNHS 1996, Fishpool et al. 2001). Almost invariably, such sites are sources of several streams and rivers that cross sometimes very long distances. 2.1.3 Such ecosystems are made of many organisms that are interacting in a resource-consumer system affecting the surrounding physical (organic and inorganic) environment forming what is infrequently but appropriately described as nature’s economy (Tilman et al. 2005). As result of mainly their function in the environment, species interact competitively with structural consequences that is mainly manifested as biodiversity which is the number of species of a given group that co-occur at a given location and time. Studies that evaluated the economic values of landscapes showed that productivity increased significantly with increases in species diversity (Tilman et al. 2005). The natural environment that operates in this manner provides many values and goods besides those gains generated through direct harvesting of the biological and other components (Tilman et al. 2005, de Groot 2005). Examples of ecosystem services range from availability of clean potable water, to productivity of soil, and the regulation or modification of climate. In addition to this, revenue generation through tourism as result of presence of natural attractions is one of the modern

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non-consumptive phenomena that resulted from good landscape conservation and management schemes around the world. In this regard, Ethiopia is by no means an exception. 2.1.4 As described in the previous section, some parts of the proposed investment areas are endowed with diverse ecosystems with large number of plant and animal species that are responsible for the maintenance of human life since time immemorial. Although nature based tourism in the country may not be a very recent economic event, in the past 17 years it demonstrably grew, generating a significant amount of hard currency for the country. 2.1.5 Recognizing the benefits of its biophysical resources, the Ethiopian government and its partners have been implementing conservation and management initiatives at various ecological scales across the country. Despite such commendable efforts, there exist nationwide serious constraints that result in loss of biological constituents and the associated quality of the environment. The country’s economy is growing with tangible promises to make most of the countries economic problems history. However, development at any sector cannot be realized without damaging highly valuable environmental attributes that may cost much more than the benefits gained both in the long and short-term considerations. Tourism is one of the most important sectors of the country’s economy that is growing, although not as much as it potentially can, considering the richness of the countries many attractions. If this potential is fully exploited, the realized growth may turn out to be much higher than what it currently is and requires a new investment to build new infrastructure and services and to reinvigorate the existing ones. It is highly likely that most of this is going to happen at the ‘traditional’ tourist destinations that are mainly known for their cultural/historical attractions. By no means can it be argued that the cultural/historical attractions are exploited to their full potential in increasing the number of tourists and time that they spend at a given site. These are the two main factors that increase the amount of revenue generated per tourist in a given country. 2.1.6 At some of such traditional sites such as Lalibela, recent innovative initiatives, by an NGO called TESFA, have refocused the direction of the tourism market by successfully exploiting the unparalleled beauty of the surrounding landscape and the unique wildlife, particularly birds. Considering this has been a very recent phenomenon and towns at tourist sites emerged from little villages, it is very easy to imagine that so much of high economic value was lost without any body noticing. This is not to mean that what remains is little and thus has no value. As was mentioned earlier, some very innovative initiatives demonstrated that even under its battered condition, nature in Ethiopia has immense potential to attract tourists and most importantly to use the revenue generated to alleviate poverty locally. This and other ecosystem provisions that are vital for human survival necessitate cautious undertaking of further infrastructure and service developments within and around tourism sites. 2.2 Socio-economic aspects: The sites of interest are occupied by Ethiopians drawn from different ethnic groups. Lalibela and Axum are inhabited by the main Semetic ethnic groups comprising mainly the Amhara and Tigre. 2.2.1 Means of livelihood include agriculture, livestock rearing and small to medium mercantile businesses. Most of the residents of the sites could be considered poor that depend on subsistence means of agriculture and livestock rearing. In towns although one may not encounter the very rich, there are all types of income categories between the poorest and the middle income households.

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2.2.2 The residents of the sites mainly are Orthodox Christians. These Northern Christians practice ancient culture of the Ethiopian Orthodox Church in their daily worship procedures and during special annual celebrations like Ethiopian Christmas, Epiphany and Meskel. Traditional open markets are also very colorful events that serve as living displays of the indigenous culture. 2.3 Physical cultural resources across the tourism route 2.3.1 Due to their cultural/historical attractions, resources at Lalibela and Axum are considered as one of the eight wonders of the world. Many sites have qualified as World Heritage Sites fulfilling the standards of the UNESCO. Some of the structures, particularly in the north are considered as having political significance at the time of building to remind viewers of the timelessness of the greatness of the accomplishments of the individuals to whom they are dedicated. There are also structures built to capture the central meaning of Orthodox Christianity still magnificently serving the same purpose. Others are just parts of an ancient city continuing to give the same services that they were originally built for.

3. Description of ESTDP’s areas of influence 3.1 Areas of influence that may be affected as the project is implemented cover both environmental and socio-economic issues. The following is their description: 3.1.1 Water-shed: As described earlier the environment around Lalibela does have natural forests. In addition, there exists extensive area of rehabilitated scrubland and wooded valleys and mountain blocks that are interspersed with agricultural fields north-east and southeast of the town. These places are part of the larger catchment of the Tacazze River. Although their direct water contribution may be relatively smaller, they obviously have other hydrological functions that substantially determine the quality of the water that gets in to the river mainly through reduction of the magnitude of soil erosion. Further more, the rehabilitated and natural scrubland is the main source of cooking energy and other essentials for both Lalibela Town and the surrounding rural environment. In some of these areas reside endemic, restricted range and threatened bird species and other ‘less important’ wildlife. Such habitats and the organisms that reside in them may be exposed to some level of increased resource exploitation pressure. This effect mainly may come from enhancement of engagement of rural and urban local residents in small catering and other village based tourism businesses that may increase the demand for fuel and construction wood. As result, there may be an increase in the rate of vegetation clearance at the rehabilitated and other habitat continuum. It is thus essential to strengthen and take advantage of the current habitat rehabilitation practice that is being implemented with obvious encouraging results by putting in place a more focused conservation and management scheme that compensates for the loss of habitat components that result from increased rate of utilization. This would also ensure the continued availability of key natural resources for the local residents and more importantly diversifies the tourism business enhancing the site’s attractiveness for visitors that are interested in nature. Together with the direct conservation and management measures, setting up a mechanism that makes possible provision of cheap green energy technology to rural and urban users would reduce the impact substantially.

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3.1.2 Another potential source of negative influence to a larger water shade such as the one Lalibela and its environs are part may come from a likely periodic/continuous discharge of liquid and other organic human waste from communal latrine facilities in to the surrounding rivers that carry any potential risk to places that are found long distance away from a discharge point. There is no argument regarding the need for such essential service provision structures both for international visitors and local pilgrims, but the mechanism that relives them off the waste that they temporarily store must make sure that the negative impact on the immediate site environment and the general water shade area is at its minimum. Therefore, an alternative low impact means of waste disposal must be applied which significantly reduces the described negative influences and strictly forbids contamination/pollution of ground water and other natural systems in the immediate site environment. 3.1.3 Construction/rehabilitation of roads may result in partial/total loss of land and livelihood to some residents along construction/rehabilitation routes. Some level of loss of habitat and disturbance to wildlife may also be expected. Prior to construction detailed social and ecological surveys must be conducted to asses the potential impact at planned routes with objective of minimizing the adverse impacts. 3.1.4 Off-site resettlement areas: In many of the sites, it is unavoidable to affect farms when people removed from a tourist site are relocated. In such instances, farmers must be compensated appropriately and a new land or other means of livelihood with comparable benefits must be provided. Towards this end, the provisions of the Resettlement Policy Framework (RPF) will be implemented as appropriate.

4. Description of Ethiopia’s policies, legislations and legal regulatory frameworks 4.1 Environmental issue in Ethiopia became the government’s agenda following the UN Conference on Environment and Development (UNCED or the Earth Summit) that was held in June 1992 in Rio de Janeiro, Brazil. In order to address the environmental problems and heading towards achieving sustainable development, the mechanism of environmental protection adopted by Ethiopia since 1992 could be characterized by a three-stage approach. 4.2 ‘ The Constitution of Ethiopia (1994): The first stage is marked by incorporation of environmental issues into the supreme law of the country. The 1994 Constitution of Ethiopia under Articles 43, 44 and 92 proclaims the following: In Article 43: The Right to Development, where peoples’ right to: o improved living standards and to sustainable development, o participate in national development and, in particular, to be consulted with respect to

policies and projects affecting their community, and o the enhancement of their capacities for development and to meet their basic needs, are

boldly recognized. Similarly, in article 44: Environmental Rights, all citizens are entitled to: o live in a clean and healthy environment, o Compensation, including relocation with adequate state assistance.

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o Moreover, in article 92: Environmental objectives it is declared that, o Government shall endeavor to ensure that all Ethiopians live in a clean and healthy

environment o The design and implementation of programs and projects of development shall not

damage or destroy the environment. o Peoples have the right to full consultation and to the expression of views in the planning

and implementation of environmental policies and projects that affect them directly. o Government and citizens shall have a duty to protect the environment. The incorporation of these important provisions into the supreme law of the country uplifted environmental concerns to the level of fundamental human rights. 4.3 Environmental Policy of Ethiopia: The second stage was the formulation of a national policy on environmental management and protection. With a view to further amplifying the Constitutional provisions on environmental protection, the Environmental Policy and the Conservation Strategy of Ethiopia have been prepared. These policy and strategy documents recognized and addressed environmental issues in a more or less holistic manner, and were adopted as well as approved on 2nd April 1997. 4.4 Other National Policies Relevant to the Environment include: o Agricultural Development Led Industrialization o Economic Policy During Transition o Federal Water Resources Policy o Federal Energy Policy o Draft Industrial Environmental Policy and Strategy o Industrial Sector Strategy o Urban policy of Ethiopia 4.5 Incorporation of environmental rights under the Constitution, adoption of Environmental Policy and the Conservation Strategy of Ethiopia, ratification of multilateral environmental Conventions, establishment of the Environmental Protection Authority are some of the basic moves towards heading for environmental protection and sustainable development in Ethiopia. 4.6 The overall Environmental policy goal: The overall Ethiopian Environmental Policy Goal is to improve and enhance the health and quality of life of all citizens and to promote sustainable social and economic development through the sound management and use of natural, human-made and cultural resources and the environment as a whole so as to meet the needs of the present generation without compromising the ability of future generations to meet their own needs. Under the rubric of this overall policy goal, it has specific policy objectives including the improvement of the environment of human settlements, prevention of pollution of land, water and air, the improvement of the cultural and natural heritage of the country, to ensure empowerment and participation of the society in environmental management, the need for environmental education and environmental impact assessment.

4.7 Objective of Environmental Policy: The Policy seeks to:

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o Ensure that essential ecological processes and life support systems are sustained, biological diversity is preserved and renewable natural resources are used in such a way that their regenerative and productive capabilities are maintained and, where possible, enhanced so that the satisfaction of the needs of future generations is not compromised; and, where this capability is already impaired, to seek through appropriate interventions a restoration of that capability;

o Ensure that the benefits from the exploitation of non-renewable resources are extended as far into the future as can be managed, and minimize the negative impacts of their exploitation on the use and management of other natural resources and the environment;

o Identify and develop natural resources that are currently under-utilized by finding new technologies and/or intensifying existing uses which are not widely applied;

o Incorporate the full economic, social and environmental costs and benefits of natural resource development into the planning, implementation and accounting processes by a comprehensive valuation of the environment and the services it provides, and by considering the social and environmental costs and benefits which cannot currently be measured in monetary terms;

o Improve the environment of human settlements to satisfy the physical, social, economic, cultural and other needs of their inhabitants on a sustainable basis;

o Prevent the pollution of land, air and water in the most cost-effective way so that the cost of effective preventive intervention would not exceed the benefits;

o Conserve, develop, sustainably manage and support Ethiopia’s rich and diverse cultural heritage;

o Ensure the empowerment and participation of the people and their organizations at all levels in environmental management activities; and

o Raise public awareness and promote understanding of the essential linkages between the environment and development.

4.7.1 The Policy is divided into 10 sectoral and 10 cross-sectoral issues. 4.8 Environmental protection laws: Policies are of a framework nature and thus they cannot implement themselves. They need the formulation and implementation of laws, standards and guidelines as well as institutional arrangement. Therefore, the third stage marks the formulation of environmental protection laws so as to reach the objectives fixed by the Constitution and the Environmental Policy as well as the Conservation Strategy of Ethiopia and the environmental Conventions to which Ethiopia is a party. 4.8.1 Federal Environmental Protection Laws include: o Environnemental Protection Organs Establishment Proclamation (Proclamation No.

295/2002), o Environnemental Impact Assessment Proclamation (Proclamation No. 299/2002), o Environnemental Pollution Control Proclamation (Proclamation No. 300/2002), o Solid waste management proclamation o Draft Industrial Pollution Prevention and Control Regulation, o Draft Industrial Environmental Policy and Strategy, o Industrial Sector Strategy, o Proclamation 2/01/1981 for the control of air pollution o Proclamation 217/1981 for the control of water pollution o Proclamation 94/1994 legislation on Forest Conservation o Legal Notice No. 445 of 1970 on Wildlife Conservation

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o Special Decree No.20/1990 on Pesticide Control o Proclamation No. 137/1998 on Pesticide control o Plant Quarantine Council of Minister’s Regulation 4/1992 o Proclamation No. 52/1993 Mining Proclamation o Regulation No.182/1994 Law on Mining and energy operations 4.8.2 Only those laws which have direct significance to environmental protection are discussed here. 4.9 Proclamation on the establishment of environmental protection organs The main aim of the law is to establish a system that fosters coordinated but differentiated responsibilities among environmental protection agencies at federal and regional levels so as to foster sustainable use of environmental resources, thereby avoiding possible conflicts of interests and duplication of efforts. 4.10 Environmental impact assessment proclamation Environmental impact assessment is used to predict and manage the environmental effects that a proposed development activity might entail and thus helps to bring about intended development. Furthermore, assessment of possible impacts on the environment prior to the approval of a public instrument is recognized as providing an effective means of harmonizing and integrating environmental, economic, cultural and social considerations into a decision making process in a manner that promotes sustainable development. To this end the law is prepared to facilitate the implementation of the environmental rights and objectives provided by the Constitution and the maximization of their socio-economic benefits by predicting and managing the environmental effects which a proposed development activity or public instruments might entail prior to their implementation.

4.11 Environmental pollution control proclamation The law recognizes the fact that some social and economic development endeavors may inflict environmental harm that could make the endeavors counter-productive. It also underlines the fact that the protections of the environment, in general, and the safeguarding of human health and wellbeing, as well as the maintaining of the biota and the aesthetic value of nature, in particular, are the duty and responsibility of all. To this end the law aims to eliminate or, when not possible, to mitigate pollution as an undesirable consequence of social and economic development activities. 4.12 Solid Waste Management Proclamation The objective of this proclamation is to enhance at all levels capacities to prevent the possible adverse impacts while creating economically and socially beneficial assets out of solid waste. Some of the important provisions include: 1. General obligations of Urban Administrations o Urban administrations shall create enabling conditions to promote investment on the

provision of sold waste management services.

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o Any person shall obtain a permit from the concerned body of an urban administration prior to his engagement in the collection, transportation, use or disposal of solid waste.

2. Solid Waste management planning o Urban Administrations shall ensure the participation of the lowest administrative levels

and their respective local communities in designing and implementing their respective solid waste management plans.

o Each Region or urban administration shall set its own schedule and, based on that, prepare its solid waste management plan and report of implementation.

3. Inter-Regional Movement of Sold Wastes o Each Regional State shall keep the shipment of solid waste to other regions for final

disposal at the minimum possible. o Regional States may require any transit of solid waste through their region to be packaged

and transported in conformity with the directives and standards issued by the concerned environmental agency.

o Solid waste may be transported form one Regional State or urban administration to another Regional State or urban Administration only if the recipient Regional State or urban administration has notified the sender in writing of its capacity to recycle or dispose of it in an environmentally sound manner.

o 4 International Environmental Conventions and Protocols Signed or signed and ratified by Ethiopia

4.13 International Environmental Conventions and Protocols Signed or Signed and Ratified by Ethiopia

4.13.1 There are a number of international treaties and agreements on a range of environmental and natural resource issues (e.g. ozone depletion, global warming, pollution of international waters, marine environmental protection, transport of hazardous wastes and biodiversity). It requires these treaties and agreements to be considered in environmental analyses, where relevant and feasible, with a view to minimizing possible adverse impacts on global environmental quality. 4.13.2 Ethiopia has adopted and ratified several international conventions and agreements related to the environment. The major ones are: 4.13.3 Convention on Biological Diversity The Convention on Biological Diversity has three goals: (i) the conservation of biodiversity; (ii) the sustainable use of the components of biodiversity; and (iii) the fair and equitable sharing of the benefits arising from the use of genetic resources. The Convention was ratified by Ethiopia by Proclamation 98/94, on May 31, 1994. 4.13.4 Various activities are being carried out towards the implementation of this convention. The following are some of the exemplary activities:

o Prior to 1998, the Institute of Biodiversity whose responsibility was to sample and conserve the country’s plant genetic resources has now been transformed itself into the Institute of Biodiversity Conservation and Research with additional duties regarding animal life and microorganisms.

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o A National Biodiversity Protection and Research Policy has been prepared; o National Biodiversity Strategy and Programme has been developed.

4.14 The United Nations Convention to Combat Desertification (UNCCD) 4.14.1 The objective of the Convention is to combat desertification and mitigate the effects of droughts in countries experiencing serious drought and/or desertification, particularly in Africa. Ethiopia has ratified the Convention by Proclamation No. 80/1997. 4.14.2 To implement the Convention the following activities are being carried out with the coordination of the Environmental Protection Authority. The following are some of the activities that have been and are being carried out: o Completion of the drafting of a national programme for combating and controlling

desertification; o Providing some capacity building support and implementing awareness raising

programmes in the regions; o Preparation by some of the regions of regional programmes for combating and controlling

desertification. o Using participatory approaches, pilot projects designed to demonstrate for communities

how degraded land can be rehabilitated are underway in four regions. o The drafting of a gender strategy designed to facilitate the incorporation of gender issues

into the programme for combating desertification is in the process of preparation. o A draft document with respect to the establishment of a fund for combating

desertification has been finalized. 4.15 The Vienna Convention for the Protection of the Ozone Layer 4.15.1 The basic objective of the Convention is to combat the negative impact on the environment and human beings resulting from ozone depleting substances by reducing the amounts released and eventually banning their commercial use through internationally agreed measures. The Montreal Protocol entered into force in 1989 to facilitate the implementation of the Convention. 4.15.2 Ethiopia has ratified and became party to the Vienna Convention and the Montreal Protocol in January 1996. The National Meteorological Services Agency has been mandated for the coordination and supervision of implementation of this convention in Ethiopia. The following activities have so far been conducted towards implementing this convention: o A programme for controlling ozone-depleting substances in Ethiopia is in place. o A National Ozone Team has been established under the auspices of the National

Meteorological Services Agency. o A project for the repair and reuse as well as a programme with respect to the handling of

CFC-based refrigerators have been developed; o A draft legislation for the control substances that deplete the ozone layer has been

prepared; and o Training on awareness creation has been conducted. 4.16 United Nations Framework Convention on Climate Change (UNFCCC)

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4.16.1 Ethiopia has ratified this Convention by Proclamation No. 97/1994 on May 2/1994. This convention takes into account the fact that climate change has transboundary impacts. The basic objective of this Convention is to provide for agreed limits regarding the release of greenhouse gases into the atmosphere and to prevent the occurrence or minimizes the impact of climate change. 4.16.2 The following major activities have been undertaken to implement the Convention at national level: o Within the National Meteorological Services Agency, a Climate Change and Air

Pollution Research Team has been established; o Major sources of greenhouse gases in the country have been registered. A preliminary

research has also been conducted to verify the effect of climatic change on the water flow of the Awash River as well as on wheat production and forest resources;

o Research has been undertaken on the best possible measures to minimize greenhouse gas emissions associated with energy utilization as well as from grazing and livestock production.

o A National Climate Change Report has been prepared for the first time in the country and submitted to the Secretariat of the Convention.

4.17 The Basel Convention 4.17.1 The objective of the Basel Convention is to control and regulate the transboundary movement of hazardous waste. The Bamako Convention of 1991 plays a similar role at the level of the African continent. Ethiopia has ratified the Convention by Proclamation No. 192/2000. 4.17.2 At present measures designed to amend the Basel Protocol is in progress. In addition, activities related to prior informed consent are being carried out. Furthermore, to implement the Convention within the country, draft policies and legislation have been prepared and submitted to the government. 4.18 The Stockholm Convention In the year 2002, Ethiopia fully accepted and ratified the Stockholm Convention designed to ban the use of persistent organic pollutants (POPS). The Environmental Protection Authority has the full mandate to implement the Convention at the national level. A project to develop an appropriate system for the realization of the objectives of the Convention in Ethiopia is in progress. 4.19 The Rotterdam Convention This Convention relates to prior informed consent in the context of international trade in specific hazardous chemicals and pesticides. The Environmental Authority is the organ responsible for the domestic implementation of this convention, which has been ratified by Ethiopia in 2003. The Environmental Protection Authority is preparing a framework for its implementation. 4.20 International Convention on Trade in Endangered Species, Fauna and Flora

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4.20.1 The objectives of the Convention are (i) to control international trade in endangered species and (ii) to ensure that international trade in non-endangered species is carried out in a manner which ensures stable markets and economic benefits for the exporting countries as well as to control and regulate illegal trade in such non-endangered species, fossils and/or their derivatives. 4.20.2 Ethiopia has ratified the Convention. The mandate to implement the Convention at the Federal level is bestowed upon the Ethiopian Wildlife Protection and Development Organization. 4.21 An analysis shows that recent policies, proclamations and conventions such as Environmental Protection Organs Establishment Proclamation (Proclamation No. 295/2002), Environmental Impact Assessment Proclamation (Proclamation No. 299/2002), Environmental Pollution Control Proclamation (Proclamation No. 300/2002), Draft Industrial Pollution Prevention and Control Regulation, Draft Industrial Environmental Policy and Strategy, Industrial Sector Strategy, together with Environmental Policy of Ethiopia and international conventions are important stepping-stones for the improvement of the environment in Ethiopia.

5. Administrative arrangements (roles and responsibilities) to implement environmental policies and laws 5.1 The administrative arrangements and the major role players in implementing environmental policies particularly an EIA process are the following: o Competent agency o Proponent o Consultant o Interested and affected parties (IAPs) o Licensing Agency 5.2 The multitude of division of functions and variability of responsibilities inherent in the EA process calls for the clear definition and spelling out of roles and tasks of different stakeholders. Therefore, defining the roles and responsibilities of each party would enable to harmonize the various interests and foster cooperation in a manner that averts duplication of efforts and promote efficiency. Potentially, EA involves all members of society. For convenience and, above all in recognition of the common but differentiated roles each may manifest, the different actors are categorized in to the following five major groups: 5.3 Environmental Agency 5.3.1 An Environmental Agency is either EPA or Regional Environmental Body that are mandated by a proclamation provided for the establishment of Environmental Protection Organs (Proc. no.295/2002) and Environmental Impact Assessment Proclamation (Proc.no.299/2002) and other relevant laws to oversee and facilitate the implementation or administration of EA. 5.3.2 An Environmental Agency has responsibility to make sure that:

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o the necessary system that contains procedural and technical guidelines is prepared and implemented,

o the public, especially affected communities are given meaningful opportunity in the EA process,

o views, concerns and position of IAPs are taken into account during assessment, reviewing, auditing and at all stages of decision making,

o all processes in EA administration is made in transparent, participatory and accountable manner,

o the proponent’s right to appeal and understanding of the process is respected at all times, o incentives structures are prepared to encourage environmentally friendly practices, o EA audits are conducted at various stages in EA process and at the corresponding levels

in the project cycle and a step wise approval is done. o liaison with relevant licensing agencies is maintained. o activities' schedules are continuously updated, o appeals and grievance are entertained and decisions are communicated in good time, o proponents are provided with advice that help them best comply with EA requirements, o decisions are made without unnecessary delay and within the time frame stipulated in the

relevant laws and in a manner that improve effectiveness and efficiency, o appropriate support is made available to build capacity and create awareness on EA, etc. 5.3.3 EPA as a Federal Environmental Agency is responsible for: o the establishment of a required system for EA of public and private sector projects, as

well as social and economic development policies, strategies, laws, and programs of federal level functions;

o reviewing and pass decisions and follow-up its implementations of Environmental Impact Study Reports of projects, as well as social and economic development programs or plans where they are,

o subjects to federal licensing, execution or supervision, o likely to entail inter or transregional, and international impacts o notifying its decision to the concerned licensing agency at or before the time specified in

the appropriate law or directives, o auditing and regulating the implementation of the conditions attached to the decision, o provide advice and technical support to the regional environmental agencies, sectoral

institutions and the proponents, o making its decisions and the EA report available to the public, o resolving all complaints and grievances in good faith and at the appropriate time, o develop incentive or disincentive structures o involve in EA awareness creation, 5.3.4 Regional Environmental Agencies 5.3.4.1 In the Environmental Impact Assessment Process the regional environmental agencies or their equivalent Competent Authority are responsible to: o adopt and interpret federal level EA policies and systems or requirements in line with

their respective local realities, o establish a system for EA of public and private projects, as well as social and economic

development policies, strategies, laws, or programs of regional level functions;

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o inform EPA about malpractices that affect the sustainability of the environment regarding EA and cooperate with EPA in compliant investigations,

o administer, oversee, and pass major decisions regarding impact assessment of: o project subjects to licensing by regional agency o project subjects to execution by a regional agency o project likely to have regional impacts o the biophysical and socio-economic baseline conditions are adequately and truly

described, o during scoping major issues are well defined and explicitly indicated in the Term of

Reference (TOR), o interested and especially the affected parties or their true representatives are provided

with all means and facilities (e.g. notice, assembly holes, reasonable time, understandable language) that enable them to adequately air their views and concerns,

o IAPs have agreed to and satisfied with the terms of compensations and the appropriateness of the EMP,

o the environmental monitoring activities are undertaken in appropriate time with the involvement of the IAPs and regular reporting is made in good faith and time to all concerned,

o the proponent/consultant fulfill the local and regional legal and policy requirements and obtain the necessary permits,

o the envisaged benefits to that communities and the regions are tangible, o the monitoring plan are logical and allows the participation of relevant bodies in the

region, o the strategy for impact communication and reporting was understandable and

appropriate at regional level stakeholders, o the minutes of the consultation process reflects the true and unbiased accounts of the

opinions and interests of the IAPs at the local level. o establish the necessary condition for the creation of awareness on EA, o develop the necessary incentive and disincentive system, etc.

5.4 Proponent 5.4.1 A proponent is any person or organization that initiates a project, policy or program. The proponent is responsible for complying with the requirements of the EIA process. The first responsibility of the proponent, however, is to appoint an independent consultant who will act on the proponent’s behalf in the EIA process. The proponent should ensure that the consultant has: o Expertise in environmental assessment and management. o The ability to manage the required participation process o The ability to produce reports that are readable, comprehensive and informative o A good working knowledge of environmental impact assessment and management

policies, legislation, guidelines and standards. 5.4.2 The proponent may appoint an individual consultant or a multi-disciplinary group of consultants. The proponent is responsible for all associated costs incurred when following the EIA process. The proponent must ensure that adequate participation of the competent agency and interested and affected parties has been carried out. The proponent is also responsible for

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public consultation. On Completion of the EIA, it will be the proponent’s responsibility to ensure that the conditions of approval are carried out (including monitoring and auditing). 5.4.3 A proponent is required to: o proactively integrate an environmental concerns into its social and economic development

project, program, policy, plan or strategic initiative as per the requirements of relevant environmental laws and directives,

o ensure that positive effects are optimized and strive to promote conservation based development and work with objectives of continuous improvement,

o initiate the EA process and create the necessary ground for undertaking EA, o appoint an eligible independent consulting firm who shall seek to undertake EA , o Cover all expense associated with the Environmental Impact Assessment. This may

include the costs of: o undertaking EA, o public participation process, o reviewing EIA report as the need arise, o preparation and implementation of EMP, that include both mitigation and monitoring

measures and the associated institutional and human resources, o closure plan as the case may be, o Environmental Management System, o contingency plan, o reporting, environmental education, etc. o submit to EPA or the relevant regional environmental agency an EIA report together with

the necessary documents requested both in an electronic and hard copies, o observe the terms and conditions of authorization and work in partnership and

cooperation with all responsible and interested parties, o provide the necessary reports for stepwise decisions required for approval of the

proposal, o involve all interested and affected parties, and to that effect take all reasonable and

practical measures to notify the latter in good time, o establish environmental units to monitor the environmental performance of the project in

a proactive manner to ensure sustainable development, o consult relevant government institutions as the case may be, o report on a regular bases about its environmental performance, o establish database and network with all concerned parties, and respect local values and

interests, o develop standardize environmental management system; o be familiar with the pertinent EA related stipulations, etc. 5.4.4 Consultant 5.4.4.1 A consultant is an individual or institution that can command the required qualified professional working individual or group that has demonstrated the ability to undertake the EA, and meets the requirements specified under the relevant law. The individual consultant acts on behalf of the proponent in complying to the EIA process and is responsible for all processes, plans and reports produced while following the EIA process and should have adequate access to facilities for storing this information. The consultant should also ensure that all of this information is made available to the competent Agency via the proponent. The

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consultant must ensure that adequate participation of the Competent Agency and interested and affected parties has been carried through his proponent. 5.4.4.2 The consultant that will be appointed to work on behalf of a proponent is expected to:

o Have the expertise in environmental impact assessment and management commensurate with the nature of the proposed activity and legal requirements,

o A good working knowledge of environmental impact assessment and management policies, legislation, guidelines and standards.

o Make available an interdisciplinary team, having solid technical skills and legal know-how, and local knowledge,

o The ability to manage the required participation of interested and affected parties in acceptable manner,

o have the facility to produce readable reports that are through and informative, o declare and ensure at all times that he has no vested interest in the proposed activity

and observe all ethical values, o familiarize his/herself with legal and technical requirements of all the concerned

bodies such as regional environmental agencies, sectoral agencies, local administration, and an endorsed minutes of public consultation process by appropriate local authority, as the verification of the truthfulness of all information contained in the EIA-report as well as fairness of the process,

o provide additional detailed information related to the environmental impact study report as may be requested,

o ensure that Interested and Affected Parties are provided with all means and facilities (e.g. notice, assembly holes, reasonable time, understandable language, fair representation, etc.) enabling them to adequately air their views and concerns,

o fulfill that they are legally registered and licensed to conduct the task, o capable of presenting an authentic complete CV of experts to be employed for the

task, o present a true, pragmatic, analytical, understandable, and impartial account of the

proposed activity, etc. 5.5 Interested and Affected Parties (IAPs) 5.5.1 Interested and Affected Parties (IAPs) are individuals or groups concerned with or affected by the proposed activity or its consequences. These may include local communities, customers and consumers, environmental interest groups and the general public. 5.5.2 Interested and affected parties are key to a successful EIA and are responsible for providing input and comments at various stages in the EIA process. The input from interested and affected parties should be sought during the scoping phase, in assessing and mitigating impacts and in the review of the EIS. In accepting the responsibility to participate, IAPs should ensure that their inputs and comments are provided within the specified (reasonable) time limit set by the proponent and his/her consultant. 5.5.3 Interested and Affected Parties are expected to: o provide comments at various stages of EA with reasonable time frame, o work in partnership with Environmental Agencies and proponents,

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o act and lobby in good faith, knowledge, reason and in a cooperative manner and use all means and facilities to ensure fairness in EA administration,

o follow and monitor changes and inform the environmental and sectoral agencies and local administration the occurrence of adverse incidence or any other grievance in the course of implementation of a project or public instruments,

o advocate and uphold the principle and values of environmentally sustainable development, etc.

5.6 Licensing Agency 5.6.1 Licensing Agency is any organ of government empowered by law to issue an investment permit, trade or operating license or work permit or register business organization as a case may be. Licensing agencies are required to: o ensure that prior to issuing their respective licenses and permits to require proponents to

submit authorization, a letter of approval or Environmental Clearance Certificate awarded by the appropriate Environmental Agency,

o ensure that environmental performance criteria are included in their respective sectoral incentive or disincentive structure,

o ensure that renewal or additional permits issuance should also considers integration of environmental concerns; and

o seek advice or opinion from the appropriate environmental agency, etc.

6. The World Bank Safeguard Policies 6.2 The Bank’s ten Safeguard Policies are discussed below. OP 4.01 Environmental Assessment has been triggered due to the planned rehabilitation and construction of activities at the project sites; OP 4.12 Involuntary Resettlement has been triggered due to the potential for land acquisition to accommodate the planned facilities; and OP 4.11 Physical Cultural Resources has been triggered because the proposed project will improve the quality of the cultural sites to be supported under the proposed project. 6.3 A summary of the Bank’s safeguard policies is provided in Annex 6. This summary provides guidance to future project implementers as to how to design and implement sub-projects in compliance with the Bank’s safeguard policies. It should be noted that in the event that there is a discrepancy between Ethiopia’s resettlement policies and the Bank’s OP 4.12, the provisions of the latter policy apply for the duration of the implementation of ESTDP. 6.4 OP 7.50 Projects on International Waterways has not been triggered by the ESTDP project because the riparian notification requirements have either already been complied with pursuant to the previous project, or else, are not required for the type and scale of development considered. OP/BP 4.01 Environmental Assessment The objective of this policy 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. This policy is triggered if a project is likely to have potential (adverse) environmental risks and impacts on its area of influence. OP 4.01

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covers impacts on the natural environment (air, water and land); human health and safety; physical cultural resources; and transboundary and global environment concerns. OP/BP 4.11 Physical Cultural Resources The objective of this policy is to assist countries to avoid or mitigate adverse impacts of development projects on physical cultural resources. For purposes of this policy, “physical cultural resources” are defined as movable or immovable objects, sites, structures, groups of structures, natural features and landscapes that have archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Physical cultural resources may be located in urban or rural settings, and may be above ground, underground, or underwater. The cultural interest may be at the local, provincial or national level, or within the international community. OP/BP 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. In cases where there is a discrepancy between national resettlement legislation and the Bank’s policy on involuntary resettlement, the provisions of the latter – OP 4.12 – apply for the duration of the implementation of ESTDP, superseding national legislation in this regard. OP 7.50 Projects in International Waters The objective 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. The policy applies to the following types of projects: (a) Hydroelectric, irrigation, flood control, navigation, drainage, water and sewerage, industrial and similar projects that involve the use or potential pollution of international waterways; and (b) Detailed design and engineering studies of projects under (a) above, include those carried out by the Bank as executing agency or in any other capacity. OP/BP 4.04 Natural Habitats This policy recognizes that 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 Bank therefore supports the protection, management, and restoration of natural habitats in its project financing, as well as policy dialogue and economic and sector work. The Bank supports, and expects borrowers to apply, a precautionary approach to natural resource management to ensure opportunities for environmentally sustainable development. Natural habitats are land and water areas where most of the original native plant and animal species are still present. Natural habitats comprise many types of terrestrial, freshwater, coastal, and marine ecosystems. They include areas lightly modified by human activities, but retaining their ecological functions and most native species.

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OP/BP 4.36 Forests The objective of this policy is to assist borrowers to harness the potential of forests to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development and protect the vital local and global environmental services and values of forests. Where forest restoration and plantation development are necessary to meet these objectives, the Bank assists borrowers with forest restoration activities that maintain or enhance biodiversity and ecosystem functionality. The Bank assists borrowers with the establishment of environmentally appropriate, socially beneficial and economically viable forest plantations to help meet growing demands for forest goods and services. 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; and (ii) strengthen the capacity of the country’s regulatory framework and institutions to promote and support safe, effective and environmentally sound pest management. More specifically, the policy aims to (a) Ascertain that pest management activities in Bank-financed operations are based on integrated approaches and seek to reduce reliance on synthetic chemical pesticides (Integrated Pest Management (IPM) in agricultural projects and Integrated Vector Management (IVM) in public health projects. (b) Ensure that health and environmental hazards associated with pest management, especially the use of pesticides are minimized and can be properly managed by the user. (c) As necessary, support policy reform and institutional capacity development to (i) enhance implementation of IPM-based pest management and (ii) regulate and monitor the distribution and use of pesticides. OP/BP 4.10 Indigenous Peoples The objective of this policy is to (i) ensure that the development process fosters full respect for the dignity, human rights, and cultural uniqueness of indigenous peoples; (ii) ensure that adverse effects during the development process are avoided, or if not feasible, ensure that these are minimized, mitigated or compensated; and (iii) ensure that indigenous peoples receive culturally appropriate and gender and intergenerationally inclusive social and economic benefits. OP/BP 4.37 Safety of Dams The objectives of this policy are as follows: For new dams, to ensure that experienced and competent professionals design and supervise construction; the borrower adopts and implements dam safety measures for the dam and associated works. For existing dams, to ensure that any dam that can influence the performance of the project is identified, a dam safety assessment is carried out, and necessary additional dam safety measures and remedial work are implemented. OP 7.60 Projects in Disputed Areas The objective of this policy is to ensure that projects in disputed areas are dealt with at the earliest possible stage: (a) so as not to affect relations between the Bank and its member

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countries; (b) so as not to affect relations between the borrower and neighboring countries; and (c) so as not to prejudice the position of either the Bank or the countries concerned.

7. Methods and Techniques used in Assessing and Analyzing the Impacts 7.1 The World Bank has very clear environmental and social safeguard policies that are used in this report as the guiding principle to determine attributes of the tourism attraction sites that qualify as causes of environmental and social concerns relative to implementation of certain likely actions proposed by the ESTDP. 7.2 The cultural and natural areas were assessed for their physical, biological (excluding humans), socio-economic (where the case of humans was addressed) constituents. Assessment of biological resources involved determining the presence of indigenous natural habitats such as forests and woodlands mainly together with the bird species that inhabit them. In highly urbanized areas, the consultants made records of the presence of good or remnant patches of indigenous woodlands that are important for the health of the environment. 7.3 The consultants have assessed potential investment localities by being accompanied by relevant government officials to determine the potential socio-economic problems that may result from implementation of the project components that aim to improve the current state of mainly cultural attractions. In addition, the consultants had informal discussions with urban and rural residents of potential investment areas to generate information regarding how they use space in their locality for livelihood generation, residence and cultural purposes. This generated sufficient information to evaluate the potential negative social impacts of the project at different likely scales of implementation. As much as possible, efforts were made to have a good estimate of the magnitude of change due to project implementation through consultation of documents with proposed plans and local government representatives that worked on their own plans and those that are proposed by the current project. 7.4 The ESMF includes a requirement for public consultations and disclosure of EIA reports and/or environmental and social screening results to relevant stakeholders, including potentially affected persons. 7.5 Furthermore, the ESMF includes questions that will enable future project implementers to identify potential adverse social impacts due to land acquisition and to ensure that the appropriate mitigation measures are implemented in compliance with the provisions of OP 4.12 Involuntary Resettlement as outlined in the project’s Resettlement Policy Framework (RPF). 7.6 Consultation with potentially affected people: In the absence of an approved plan with all the necessary details, asking direct questions related to potential adverse impacts could cause several difficulties with unintended consequences, which may back fire on a project such as this. The most important one was we, the consultants, becoming agents of unintended process that may trigger individual and communal ‘unrest’ that may have very serious damaging effects both on the biophysical components of a site and also the psyche of the people concerned. The consultants thus conducted informal discussions particularly with

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local residents of potential investment areas on the various values of a site to them and other people in their community. This helped to determine the livelihood and other values of potential investment areas which was very useful to make indirect evaluation of the losses people may bear if their existing private and public establishments are going to be lost or changed as result of project implementation. 7.6.1 Whenever the consultants discussed the issues with local residents and key informants they carefully solicited ‘harmless’ information that is very helpful in making inferences. Where possible, we used experience from implemented resettlement cases and the knowledge that we gained through our observation of likely localities of changes to validate our inferences. Unless a measure of very high magnitude that may strongly present itself as an alternative to improve the state of Protected Areas is carried out, our observation led us to believe that there may not be a need for any investment that may lead to resettlement of rural communities in mass to new areas very far from sites of interest. 7.6.2 If implementation of an investment venture that will result in resettlement of residents of a locality to a new site is inevitable, the affected persons may experience a range of difficulties with impacts that include mild up setting of daily routines and some level of financial strains. First and for most, whatever the local way of life that people are accustomed to they have many good objective reasons for choosing to live in their current settlement area. Despite the evident poor condition they live in, many of those to whom we talked to perceive the environment they live in positively with a mix of spiritual and material justifications. 7.6.3 However, we understand that several essential measures with benefits that outweigh the individual and collective costs must be taken at many of the sites, at least by way of correcting the collective mistakes accumulated in time. In such a situation, a just compensation mechanism will address the most basic and the essential. Beyond that grievances may be caused by increased inconveniences in reaching/accessing locations and facilities related mainly to work (clergy, civil servants and merchants), worship, shopping (traditional and modern), and school (both children and adults). Various income and job creation schemes may be implemented to address most of this difficulties opening up a venue for solving problems of joblessness and poverty. Improvement of existing infrastructure such as roads as proposed by the ESTDP benefit not only tourists but also local residents of the investment areas. As the tourism sector in these areas grows there will be significant positive changes in the lives of local residents by way of creation of job and other income generating opportunities.

8. Description of the Project 8.1 The Ethiopia - Sustainable Tourism Development Project (ESTDP) is considered by the government of Ethiopia as one of the means to enhance the contribution of the tourism sector to address the multifaceted poverty and developmental problems in the country. The project aims to use the country’s rich and magnificent cultural heritages as the centerpieces of increasing the international tourist flow to increase the revenue the sector generates. The project will be financed by the World Bank, and it is expected to make a significant contribution to the conservation of cultural resources and improve the network of infrastructure in the targeted destination areas. These areas are Lalibela, Axum and Addis Ababa.

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Project components 8.2. The proposed project will have four components: (i) destination development, (ii) market development, (iii) institutional and capacity building, and (iv) implementation support and results monitoring. Of these components, component 1 is most likely to incur localized adverse environmental and social impacts. 8.3. The project will have four components: (1) destination development, (2) market development, (3) institutional and capacity building, and (4) results monitoring and implementation support.

Component 1: Destination Development – US $15.43 million 8.4. This component will have three sub-components: (i) the rehabilitation and enhancement of basic infrastructure in key historic sites, (ii) visitor services enhancement in selected destinations, and (iii) tourism product development.

Sub-component 1.1: Rehabilitation of heritage sites and enhancement of basic infrastructure in selected destinations (US $10.33 million) 8.5. Under this sub-component, the project will finance the following activities: (a) maintenance and improvement of selected historic churches in Lalibela and satellite sites; (b) improvement of basic infrastructure including access and by-pass roads, water supply and sanitation in Lalibela; (c) improvement of stelae field, archeological museum and monuments in Axum; and (d) improvement and renovation of the Addis Ababa Museum.

Sub-component 1.2: Visitor services enhancement in selected destinations (US $4.00 million) 8.6. This sub-component will be comprised of the following activities: (a) rehabilitation and upgrading of tourists/visitor facilities, including interpretative services in key destinations (i.e. Lalibela, Axum, and Addis Ababa and environs); (b) signage and trail enhancement proximate to tourism sites; (c) documentation and exhibitions at historic sites; and (d) handicraft development to leverage tourist spending for increased local economic development.

Sub-component 1.3: Tourism product development(US $1.10 million) 8.7. The sub-component will finance activities seeking to diversify offerings, with a particular focus on asset inventory in emerging destinations through: (a) surveys of vernacular architectural and intangible heritage as well as an inventory of landscape features with potential for tourism development: (b) studies on adaptive reuse of vernacular homes and the establishment of a historical district management framework in Axum; (c) technical studies for the development of various products including museums and old houses in Addis Ababa and environs (e.g. Adadi Mariam,Melka Kunture and Tiya); (d) feasibility studies for the development of various tourism products and human resource development plans for the Eastern—including the Somali cluster—and Western routes; (e) diversification of tourism products in and around Harar; and (f) a site development study and tourism development plan in Hadar (Lucy’s site) and Arte Ele.

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Component 2: Market Development - US $7.84 million 8.8. This component will focus on promotion and marketing activities. It will have the following two sub-components: (i) positioning and marketing, and (ii) a demand-driven linkages program utilizing a matching grant scheme and providing support to communities.

Subcomponent 2.1: Positioning and marketing (US$2.69 million) 8.9. This sub-component’s activities will enable Ethiopia to develop and implement strategies to attract specific target segments from key markets. Attracting target segments involves development of: (i) a competitive position through defining target markets, (ii) collaterals accessible and attractive to target markets; and (iii) a program for on-going marketing, communication and promotion.

8.10. The following activities will be specifically financed: (i) positioning and marke