THE UNITED REPUBLIC OF TANZANIA

El 608Vol. 4

TANZANIA ENERGY DEVELOPMENT AND ACCESS PROJECT

(TEDAP)PART B

ENVIRONMENTAL AND SOCIAL MANAGEMENTFRAMEWORK FOR THE OFF-GRID ELECTRIFICATION

COMPONENT

(ESMF)

(JULY 2007)

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List of acronyms

ALAT Association of Local Authorities in TanzaniaC02 Carbon dioxideEA Environmental AssessmentEIA Environmental Impact AssessmentESMF Environmental and Social Management FrameworkESMP Environmental and Social Management PlanESIA Environmental and Social Impact AssessmentEWURA Electricity and Water Utility Regulatory AuthorityGEF Global Environment FacilityGNI Gross National IncomeGDP Gross Domestic ProductGoT Government of TanzaniaIDA International Development AssociationJAS Joint Assistance StrategyMEM Ministry of Energy and MineralsMKUKUTA Mkakati wa Kukuza Uchumi na Kupunguza Umasikini Tanzania -

Tanzania's National Strategy for Growth and Reduction of PovertyNEMC National Environment Management CouncilNEAP National Environmental Action PlanNEP National Environmental PolicyPCF Prototype Carbon FundPEA Preliminary Environmental AssessmentPIU Project Implementation UnitPV PhotovoltaicRAP Resettlement Action PlanRE Rural electrificationREA Rural Energy AgencyREF Rural Energy FundRET Renewable energy technologiesRPF Resettlement Policy FrameworkTA Technical AssistanceTANESCO Tanzania Electric Supply Company LimitedTEDAP Tanzania Energy Development and Access ProjectToRs Terms of ReferenceTRC Technical Review CommitteeT&D Transmission and DistributionURT United Republic of Tanzania

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TABLE OF CONTENTS

List of acronyms ................................................... 21.0 Executive Summary ........................................... 62.0 Introduction ............................................ 153.0 Description of the Proposed Program ......................... 174.0 Baseline Data .......................................... 19

4.1 The Bio-Physical Environmental Features ......................... 194.2 Energy Resources .......................................... 214.3 The Key Social Environmental Features .......................... 214.4 Characteristics of Poverty .................................... 22

5.0 Description Of The World Bank's Safeguard Policies .................. 245.1 Environmental Assessment (OP4.01, BP 4.01, GP 4.01) ............... 255.2 Involuntary Resettlement (OP/BP 4.12) ........................... 265.3 Safety of Dams (OP 4.37, BP 4.37) .............................. 275.4 Projects on International Waters (OP 7.50, BP 7.50, GP 7.50) ........... 285.5 Cultural Property (OP/BP 4.11) ................................... 29

6.0 Description of the Administrative, Policy, Legislative and RegulatoryFramework ...................................................... 31

6.1 Administrative Structure for the Energy Sector ..................... 316.2 The Policy Framework for the Energy Sector ....................... 326.3 The Policy Framework for Decentralization by Devolution ............. 346.4 The Legislative and Regulatory Framework for the Energy Sector ........ 356.5 The Legislative and Regulatory Framework for Decentralization ........ 356.6 Management and Administration Framework for the Environment ........ 35

6.6.1 The Office of the Vice President ............................ 366.6.2 The National Environment Management Council (NEMC) .......... 366.6.3 Environmental Sections .................................. 37

6.9 Extent of public participation .................................. 386.10 Policy Framework for the Management of the Environment ............ 396.11 Legislative Framework for the Management of the Environment ......... 396.11 International Conventions .................................... 426.12 Membership of International River Basin Commissions ............... 42

7. Determination of Potential Environmental and Social Impacts .............. 437. 1 Potential Environmental Concerns and Impacts ..................... 43

7.1.1 Generic Environmental Concerns ........................... 437.1.2 Positive Environmental Impacts of the TEDAP off-grid component ........ 487.1.3 Potential Adverse Environmental Impacts from the TEDAP off-gridcomponent .................................................. 48

7.2 Potential Social Concerns and Impacts ........................... 497.2.1 Positive Social Impacts from the TEDAP off-grid component ....... 507.2.2 Potential Adverse Social Impacts from the TEDAP off-grid component.50

8.0. Institutional Arrangements and Framework for Environmental and SocialManagement for the TEDAP ......................................... 51

8.1 Institutional Roles and Responsibilities .......................... 51

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8.1.1 The Ministry of Energy and Minerals and Rural Energy Agency ...... 518.1.2 The National Environment Management Council (NEMC) .......... 518.1.3 The Districts ............................................. 528.1.4 Sub Project Operators ...................................... 528.1.5 The Regulator ......................................... 528.1.6 The Rural Energy Fund .................................. 538.1.7 Capacity Assessments ................................... 53

8.2 Training Needs ........................................... 568.2.1 Proposed Training Program ............................... 56

9.0 Environmental and Social Planning, Review and Clearing Process forThe Rural Electrification Packages under the TEDAP off-grid component ....... 5810.0 Monitoring Plan ............................................. 61

10.1 Monitoring Roles and Responsibilities (refer to Fig. 8.1) .............. 6210.1.1 Rural Electrification Service Providers and Operators (the operators): .... 6210.1.2 Districts (Environmental Coordinator): ........................ 6310.1.3 The National Environment Management Council (NEMC): ......... 6310.1.4 The Ministry of Energy and Minerals (MEM): .................. 64

Total Costs .................................................... 6511.0 ESMF Implementation Budget .................................. 66Annex A: Verification of Safeguards Policies triggered by Sub Projects ........... 67Annex B: Outline for an Environmental and Social Impact Assessment Report ...... 72Annex C: Guidelines for an Environmental and Social Management Plan (ESMP) ........ 74Annex D: ....................................................... 75

Table D. 1 Adverse Environmental and Social Impacts from Rural Energy Type SubProjects to be rated H, M, or L in ESIA/EMP ............................ 75

Annex E: Generic Mitigation Measures for adverse impacts .................. 77Table E.1 ..................................................... 77Table E.10 .................................................... 91

Annex F: Generic Guidelines for Preparing and Implementing a Public ConsultationPlan for an ESIA .................................................. 93

Table F. 1: Methods and Levels of Public Involvement ..................... 96Annex G: Environmental and Social Appraisal Form (ESAF) ...................................... 98Part 3: Environmental and Social Issues ............................ 98Part 4: Field Appraisal Decision ................................. 10...... 1Annex H: Guidelines for Assessment of Dams and Preparation of a Dam SafetyMeasures Report ................................................. 101

Purpose and Scope of Work ....................................... 101Qualifications of the Dam Specialist: ................................. 101Investigations of Operating Conditions: ............................... 101Investigations of Structural Conditions: ............................... 101Investigations of Regulatory Framework: .............................. 102Dam Safety Report: ............................................. 102

Annex I: Environmentally Sensitive Areas ( Esa's) And Ecosystems In Tanzania ... 103Annex J: REA Capacity Building Strategy ......................... 104

Capacity Building Strategy for REA ................................. 104Production of a Policy, Procedures and Guidelines Manual for REA staff ....... 104

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Develop a structure and operational framework for ESU ................... 105Develop environmental capacity within REA by conducting a training needsassessment and training staff ...................................... 105Indicative time required and budget for implementation .................... 107

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1.0 Executive Summary.

Tanzania's low electricity access rates are serious constraints in rural areas. Despitehealthy real economic growth (above 5% p.a. since 2001), low inflation and adequateforeign exchange reserves, access rates remain low for electricity: less than 10% of theoverall population and only about 1% of the rural population. These low rates are amajor constraint to higher rural non-farm incomes and an improved quality of life that canbe gained not just from improved household lighting, productive activities and improvedservice delivery in rural health, education and water facilities.

To address these constraints, the Government of Tanzania (GoT) has launched anambitious access scale-up program through an establishment of the Rural EnergyAgency and the Rural Energy Fund with a target to reach 25% electrification by 2010,using lower-cost technology and transparent, results-oriented subsidies delivered toTanzania Electric Supply Company Limited (TANESCO), a restructured parastatal utilityas well as to other competitive service providers (private, cooperatives, NGOs etc.). Tomaximize the impact, there will be a focus on electricity provision to rural enterprises andsocial facilities, the latter in order to provide the benefits of increased access to a farbroader cross-section of the population within ten years than is possible with just ahousehold connection program.

Following the launching of Tanzania's revised National Energy Policy, formally adoptedin 2003, a restructuring of the energy sector was initiated. The policy made a divisionbetween commercial and rural energy services, giving the Ministry of Energy andMinerals (MEM) the responsibility to increase government efforts to ensure that ruralareas and poor households have access to modern energy services. This required anew institutional set up, and a fund for subsidising non-profitable energy provision. In2005, a new law' was passed, enabling the establishment of a Rural Energy Agency(REA) and a Rural Energy Fund (REF). REA Board has been appointed and itsmanagement is being recruited.

As part of this strategy, the GoT has asked the World Bank to include an off-gridelectrification component in the proposed Tanzania Energy Development and AccessProject (TEDAP). The overall development objectives of this project are to (i) improvethe quality and efficiency of the provision of electric service, and to (ii) establish asustainable basis for access expansion. To that extent, the project will have a grid andan off-grid component. The present ESMF covers the off-grid component of TEDAP.Separate safeguard documents have been prepared and disclosed for the gridcomponent.

The purpose of the off-grid component is to support an institutional set-up for the newlyestablished Rural Energy Agency (REA) and develop and test new off-grid electrificationapproaches for future scale-up. The project will support this new approach to ruralelectricity access by funding capital subsidies, business development and operationalsupport, with technical assistance to build the capacity of sector institutions and newservice providers. The project will provide IDA funds, GEF grants, and facilitate "carbonfinance" for purchases of carbon reduction credits.

1 The Rural Energy Act, 2005

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Also, the project's global objective, in line with GEF OP6, is to remove the barriers to,and reduce the implementation costs of, renewable energy technologies to help mitigategreenhouse gas emissions. Proposed GEF co-financing supports OP6 strategic priorities- expanding productive uses of renewable energy (institutional solar PV systems forsocial services) and promoting power sector policy frameworks supportive of renewableenergy (stand-alone grids).

To achieve these objectives, the TEDAP is structured into three components as follows;

(i) The grid component to focus on urgent investments in Tanzania Electric SupplyCompany Limited (TANESCO) transmission and distribution network, tentatively US$85million.

There are large investment needs in transmission and distribution as little investmenthas gone into maintaining and replacing T&D systems since the late 1980's.TANESCO's current 5 years investment plan focuses on capacity expansion and needsto be complemented with measures to exploit recent advances in energy efficiency anddemand-side management interventions. Of a cumulative investment plan of about US$1.3 billion (which includes access expansion), TANESCO has identified urgent T&Dinvestments of over US$ 100 million for key urban areas, for which bidding packages areeither under preparation or can be prepared very quickly by technical consultants.

The grid component would improve the capacity of existing networks, thus contributingto the financial recovery of TANESCO; improve service quality for existing clients; andallow new clients to connect to the grid in the major urban areas, which are the maingrowth centers. The project would apply some innovative features for improved technicaland commercial performance in these areas, based on experiences in other countries(e.g. Nigeria) to maximize impact of the investments.

Specifically, these investments will improve the power system performance by reducingsystem losses, frequent outages due to overloaded transformers and old equipment, lowand fluctuating voltage conditions and poor system power factors. The investments willinclude adding, replacing or upgrading transmission and distribution lines andsubstations and medium and low voltage equipment, meters, spare parts and tools. Theproject will support investments that aim at improving (i) distribution networks for reliablesupply (ii) commercial character, (iii) customer interface of TANESCO, and possibly (iv)limited access expansion. The main rationale of these investments is to create value inthe electricity business, and to demonstrate its viability in a replicable manner. Thecomponent will be implemented by TANESCO.

(ii) The off-grid component of US$14 million (plus US$6.5 million of GEF) wouldsupport an institutional set-up for the newly established Rural Energy Agency (REA) anddevelop and test new off-grid electrification approaches for future scale-up. Theinvestments would concentrate particularly on the demonstration of sustainable solarmarket packages and PV market development (scaling up Sida's ongoing operation); theimplementation of several off-grid electrification mini-grids; and the testing of newservice provision models (including private sector, cooperatives and NGOs). The projectwould also support development of small, renewable, grid-connected projects.Consistent with the JAS growth strategy, the off-grid component will also focus primarilyon those off-grid areas where provision of electricity can spur economic growth (sub-

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project screening includes an analysis of the productive use potential). The componentwill be implemented initially by the Ministry of Energy and Minerals (MEM) and passedon to REA once REA's implementation capacity is established. (Sida would supportcapacity building TA for REA). The component would follow a phased approach, so thatthe model projects can be developed in line with the growing REA capacity.

(iii) The technical assistance (TA) component of US$ 6 million for a technicalassistance will support preparation of the comprehensive access expansion strategyand syndication plan, new investment packages (grid and off-grid), support forlegal/technical/financial advisory support for the next least cost IPP, technical studies tooptimize TANESCO operations, support to independent off-grid operators, capacitybuilding for TANESCO, REA, MEM and NEMC and monitoring and evaluation.

The proposed ESMF will regulate environmental and social aspects of the off-gridcomponent only. Safeguards documents for the grid component have been preparedseparately.

However, since the exact locations of the areas where potential operators would beinterested was not known at the time the TEDAP was being prepared, the Laws of theUnited Republic in Tanzania and Operational Policy 4.01 of the Bank requires theGovernment of Tanzania (GoT) to prepare an Environmental and Social ManagementFramework (ESMF) which is to establish a mechanism to determine and assess futurepotential environmental and social impacts of all program activities to be financed underTEDAP, and then to set out mitigation, monitoring and institutional measures to be takenduring implementation and operation of the program activities to eliminate adverseenvironmental and social impacts, offset them, or reduce them to acceptable levels

The GoT is further required to disclose both documents (the ESMF and the RPF) in-country as two separate and stand alone documents so that they are accessible by thegeneral public, local communities, potential project-affected groups, local NGO's and allother stakeholders and also at the Infoshop of the World Bank and the date fordisclosure must precede the date for appraisal of the program.

The key highlights in this ESMF report are as follows;

* Detailed and comprehensive environmental and social baseline data which willprovide the environmental and social management process with key baselineinformation when identifying adverse impacts. The information contains data onTanzania's bio-physical environmental features such as its ecosystems, geology,hydrology in terms of ground and surface water resources, major and sensitivewetlands, flora and fauna. On social baselines the report discusses the mainfeatures of Tanzania's demographics, public health features and poverty.

* A thorough review of the World Banks Safeguards Policies is made. Thetriggered policies are:

- OP 4.01 Environmental Assessment- OD 4.12 Involuntary Resettlement- OP 4.37 Safety of Dams- OP 4.11 Physical Cultural Resources- OP 7.50 Projects on International Waters

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Table 5.1 presents a summary of the requirements to comply with these polices. Thereport states that other Bank policies may apply and includes a summary in Annex A ofall the Bank Safeguards Policies that are likely to apply to the sub projects.

It should be noted that each individual sub-project to be conducted under theTEDAP off-grid component must be registered and subjected to environmentalscreening and environmental assessment conducted professionally by expertsand reviewed by mandated institution.

* The administrative, policy, legislative and regulatory framework in Tanzania forthe Energy Sector in particular and for environmental management in general ispresented in chapter 6.0.

* Generic potential adverse environmental and social concerns and impacts fromanticipated program/sub project activities with root and immediate causes ispresented in detail in Section 7.0

* The roles and responsibilities of key institutions and players for the purposes ofthis ESMF are discussed in Chapter 8.0 and they are;

* The Ministry of Energy and Minerals and Rural Energy Agency

As this is a program, there will be no PIU, per se. Coordination and oversight of the off-grid component of TEDAP will be initially the responsibility of the Commissioner forEnergy and Petroleum Affairs, at the Ministry of Energy and Minerals, and subsequentlytransferred to the Rural Energy Agency (REA) once adequate capacity in REA isestablished, satisfactory to the Bank, including its Environmental and Social Unit. REAstaff is currently being recruited and Sida project is being prepared to build REAcapacity. Sample capacity building strategy for REA's Environmental and Social Unit isincluded in Annex J.

* The National Environment Management Council (NEMC)

As the TEDAP has a Category B rating, the underlying assumption is that once thisESMF is reviewed by NEMC and approved by the Minister responsible for Environmentin the Vice President's office, the execution of the processes contained in this ESMF willbe reviewed, cleared and monitored by the NEMC, MEM and the Districts. NEMC stillreview and clears/approves ESIA's and ESMF of potential operators who would be thesub project implementers in line with the regulations and new mechanisms forimplementing EMA 2004.

Similarly, the NEMC which is also centrally located in Dar es Salaam and has nodecentralized structure will have insufficient capacity to carry out on the groundmonitoring of implementation of the mitigation measures and other activities of theprivate operators. Therefore, regular and intrusive monitoring would have to be carriedout at the district level, and NEMC will provide oversight to this process. The NEMCwould also provide periodic/oversight monitoring to ensure no adverse cumulativeimpacts from the activities of the operators at the national level and will provide oversightand technical assistance to the districts when required.

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Therefore, NEMC will perform three critically important and significant roles as follows;(i) Review, Clearance and Approval of the operators ESIA/process for Category A

and B sub projects.(ii) Training of District Staff to carry out monitoring.(iii) Monitoring Oversight.(iv) Mandated government institution to approve the document before they are

submitted to the WB for disclosure and subsequent approval.(v) Ensure that each individual project or subproject conducted under the TEDAP must

is registered and subjected to environmental screening and some form ofenvironmental assessment (PEA/LEA or EIA) conducted professionally by expertsand reviewed by mandated institution.

Thereby providing (i) on the ground ESMF performance reviews/audits both forenforcement purposes, but more importantly to reinforce the training and to keep theoperators and the District Environmental Coordinators cognizant of their ESMFresponsibilities, (ii) training and (iii) periodic/oversight monitoring. With regards training,the NEMC will train District Environmental Coordinators according to the TrainingProgram contained in section 8.2.1 of this report, thereby providing capacity for theDistricts to fill this position with suitably trained personnel.

The NEMC will also be responsible for carrying out the following; (i) ensuring theoperators comply with Tanzania's environmental laws and requirements, and that of theWorld Bank's triggered Safeguard Policies, (ii) for receiving, reviewing and commentingon, requiring revisions where necessary and clearing2 of operators completed ESIA's forcategory A and B sub projects prior to issuance of the license from the regulator andfinancing from the fund, (iii) reviewing and compiling monitoring reports of the DistrictCoordinators, (iv) issue directives based on monitoring and evaluation reports, to theoperators and the District Environmental Coordinators.

* The Districts

The Districts would be responsible for, (i) receiving, reviewing and commenting,requiring revisions where necessary for category C type sub projects, environmental andsocial management plan (ESMP), prior to issuance of the license from the regulator andfinancing from the fund, (ii) to carry out a regular and intrusive monitoring regime duringplanning, implementation, construction, operations and maintenance stages of theoperators sub project (iii) for preparing periodic monitoring reports on the operatorsactivities at all stages of the operations and to send these reports on a regular basis tothe NEMC for compiling and monitoring of cumulative impacts across Tanzania, (iv) tocomply with ( consistent with national laws) the directives of the NEMC and the MEMand (v) to issue directives to the sub project operators consistent with national laws onenvironmental requirements.

* Sub Project Operators

2 To aid this process, Annex G contains and Environmental and Social Appraisal Form for use bythe NEMC and the District Environmental Coordinator.

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The sub project operators will be responsible; (i) for complying with all national lawsregarding the environment and with all social/poverty guidelines, parameters and targetsset by the GoT, and of all triggered World Bank Safeguards policies, (ii) to implementtheir program activities according to and consistent with the provisions of this ESMF,implementing, inter alia, all appropriate mitigation measures identified in their completedESIA and/or environmental and social management plan (ESMP) into the constructionplanning cycle, technical and engineering designs and drawings, and civil workscontracts, etc. (iv) to ensure that these mitigation measures are complied with duringconstruction and post construction (i.e. operations ) stages of their activities, by selfmonitoring of their activities and by periodically reporting to their respective DistrictEnvironmental Coordinator and , (v) to maintain an adequate budget to implement theappropriate maintenance procedures and practices for their operations , to ensurerelevant mitigation measures identified in the ESIA and/or environmental and socialmanagement plan (ESMP) are implemented and sustained in their operations and (vi) tocomply with any directives that may be issued from time to time from the MEM, NEMCand the Districts.

* The Regulator

Electricity and Water Utilities Regulatory Authority (EWURA) will beresponsible, inter alia for regulating the rural electricity sub sector and will issuelicenses to the approved operators. With specific regards to this ESMF, EWURAwill only issue licenses after operators have received environmental and socialclearances from NEMC and/or the District Environmental Coordinators.

* The Rural Energy Fund

Rural Energy Fund (REF) would be managed by the Rural Energy Agency(REA) and would allocate one-off partial capital subsidies on a transparent andcompetitive basis for rural electrification sub projects. The capital subsidies willbe disbursed to the operators whose bids have been successful and onlyafter they have been issued the licenses from their respective regulator.

Section 8.0 also proposes a training program at a cost of US$400,000, which alsoincludes training to environmental and social staff of the newly established REA.

The Environmental and Social Management Process is contained in Section 9.0 with thefollowing key features/steps;

a) The FIRST step in the process begins with the preparation of the bid/tender packagethat potential operators will have to submit.

b) The first step is for the potential operator to assign an Environmental Category for hissub project type, using table 9.1 below.

c) The potential operators will be assisted throughout this process by their team ofengineers (consultants)/service providers.

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The guidelines in this ESMF are specific to small-scale non-renewable and renewableenergy sub projects in rural areas. The categorization in Table 9.1 is based on the extentof the potential impacts and not the generic "sub-project type", which in turn determinesthe extent of the environmental assessment required for it. Depending upon the natureof the sub project, its extent, and the extent of the potential impacts, the Category, andhence the level of rigor for environmental analysis, is determined. Table 9.1 provides alist of sub project types that may be considered by potential operators for fundingprogram under the TEDAP.

d) The SECOND step is to determine which of the World Bank's safeguards policies maybe triggered by the sub-project and what the requirements are to comply with thetriggered policy.

e) This requires the potential operator to use the Safeguards Tables in Annex A. Furtherinformation on these policies is available on the Bank's website, www.worldbank.org.

f) The assumption is that the Environment Assessment OP 4.01 is already triggered andhence the need for compliance with this ESMF. OP 4.01 is included in Annex A toprovide additional guidance and information to the potential operators. Therefore,potential operators' compliance with this ESMF process is deemed to be accepted ascompliance with OP 4.01.

The following Safeguards Policies are not included in Annex A, because they are notlikely to apply for the reasons noted in brackets next to the OP.;

1. Pest Management (OP 4.09) (mostly for agriculture projects using inputs)2. Indigenous Peoples (OD 4.20) ( no recognized indigenous people in URT)3. Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60) (no disputed borders

with neighbors of Tanzania).4. Projects on International Waters (OP 7.50, BP 7.50, GP 7.50) ( To be addressed

at the national level by the government of the URT and not by sub projectoperators.)

g) However, Annex A contains information to help the potential operators determinewhich of the following Bank safeguard policies may be triggered by their sub project;

1. Environmental Assessment (OP4.01, BP 4.01, GP 4.01) (Always Applies)2. Natural Habitats (OP 4.04, BP 4.04, GP 4.04)3. Forestry (OP 4.36, GP 4.36)4. Cultural Property (OPN 11.03)5. Involuntary Resettlement (OP/BP 4.12)6. Safety of Dams (OP 4.37, BP 4.37)

h) If any of the Bank safeguards policies are triggered by sub project, the operator willmodify the design, implementation, operation, maintenance and decommissioningphases to ensure that the sub project satisfies the requirements of that particular policy.

i)The THIRD step is for the operator to prepare a comprehensive sub projectEnvironmental and Social Impact Assessment (ESIA) including an environmental andsocial management plan (ESMP) (see Annex C for guidelines on how to prepare anESMP). Additionally, for situations where OP 4.12 apply, the Operator will prepare a

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Resettlement Action Plan (RAP) consistent with the separately disclosed RPF. Forsituations where OP4.37 apply, the operator will prepare a Dam Safety MeasuresReport. Annex H has specific guidelines for the assessment and preparation of the DamSafety Measures Report.,

j) Annex B contains an example of a comprehensive Terms of Reference (ToRs) for theESIA.

k) For Category C sub projects, the operator is only required to prepare anEnvironmental and Social Management Plan (ESMP).

I) Annex C contains guidelines for the preparation of an ESMP for Category C subprojects and what the ESMP in Category A or B sub project ESIAs should also contain.

m) According to Tanzanian Law and World Bank OP4.01, Public Consultation is requiredas part of the ESIA and/or ESMP process.

n) Annex F has a generic guide to an acceptable public involvement process.

O) Step FOUR: Following compliance with these steps the operators submit their ESIAand or ESMP as part of their complete bid/tender package to the required authority asspecified in the specific requests for bids/tenders.

p) The ESIA for Category A and B sub projects will be reviewed and cleared by theNEMC.

q) The ESMP for Category C sub projects is to be reviewed and cleared by therespective District Environmental Coordinators.

r) Annex G contains a generic Environmental and Social Appraisal Form to be used byNEMC and the District Environmental Coordinators, to provide guidance to their reviewprocess and to notify the tender approving body of their decision before final award andfunding is made.

s) The first set of cleared ESIA's for Category A and B sub projects would also have tobe reviewed and cleared by the World Bank, to ensure compliance with its safeguardspolicies. The World Bank reserves the right to not allow funds under the TEDAP beapplied to sub projects that do not meet the requirements of its safeguards policies.

* Chapter 10.0 contains a detailed Monitoring plan, with verifiable indicators,monitoring roles and responsibilities and costs to implement this plan.

* Chapter 11.0 presents a Cost Table for the ESMF which is as follows;.

Cost for Environmental and Social mana ement f the TEDAP (in US$)Training 400,000Review of ESIAs/ESMPs 150,000Monitoring Plan 260,000Total Costs 810,000

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Annexes A- I contain tools that are designed to assist this process by providinginformation and methods to ensure the desired goal of satisfactory environmental andsocial management is achieved for the TEDAP off-grid component.

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2.0 Introduction.

the Government of Tanzania (GoT) has launched an ambitious access scale-up programthrough an establishment of the Rural Energy Agency and the Rural Energy Fund with atarget to reach 25% electrification by 2010, using lower-cost technology and transparent,results-oriented subsidies delivered to Tanzania Electric Supply Company Limited(TANESCO), a restructured parastatal utility as well as to other competitive serviceproviders (private, cooperatives, NGOs etc.). To maximize the impact, there will be afocus on electricity provision to rural enterprises and social facilities, the latter in order toprovide the benefits of increased access to a far broader cross-section of the populationwithin ten years than is possible with just a household connection program.

Following the launching of Tanzania's revised National Energy Policy, formally adoptedin 2003, a restructuring of the energy sector was initiated. The policy made a divisionbetween commercial and rural energy services, giving the Ministry of Energy andMinerals (MEM) the responsibility to increase government efforts to ensure that ruralareas and poor households have access to modern energy services. This required anew institutional set up, and a fund for subsidising non-profitable energy provision. In2005, a new law3 was passed, enabling the establishment of a Rural Energy Agency(REA) and a Rural Energy Fund (REF). REA Board has been appointed and itsmanagement is being recruited.

As part of this strategy, the GoT has asked the World Bank to include an off-gridelectrification component in the proposed Tanzania Energy Development and AccessProject (TEDAP).

However, since the exact locations of the areas where potential operators would beinterested was not known at the time the TEDAP was being prepared, the Laws of theUnited Republic in Tanzania and Operational Policy 4.01 of the Bank requires theGovernment of Tanzania (GoT) to prepare an Environmental and Social ManagementFramework (ESMF) which is to establish a mechanism to determine and assess futurepotential environmental and social impacts of all program activities to be financed underTEDAP, and then to set out mitigation , monitoring and institutional measures to betaken during implementation and operation of the program activities to eliminate adverseenvironmental and social impacts, offset them, or reduce them to acceptable levels.

Furthermore, the GoT is also required to prepare a Resettlement Policy Framework(RPF) to address the needs of those who might be affected when an operatorsoperations causes the involuntary taking of land and other assets resulting in: (a)relocation or loss of shelter, (b) loss of assets or access to assets (c) loss of incomesources or means of livelihoods, whether or not the affected person must move toanother location. The RPF has been prepared as a stand alone and separate document.

The GoT is further required to disclose both documents (the ESMF and the RPF) in-country as two separate and stand alone documents so that they are accessible by thegeneral public, local communities, potential project-affected groups, local NGO's and allother stakeholders and also at the Infoshop of the World Bank and the date fordisclosure must precede the date for appraisal of the program.

3 The Rural Energy Act, 2005

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Since the selection of operators will follow a highly competitive process, each locationthat is subsequently identified and approved by the regulators would be subjected toenvironmental and social planning prior to issuance of the license to the operator. Otherprogram activities under the off-grid component of TEDAP which may not be financed bythe World Bank are also subject to the provisions of OP 4.01 and hence this ESMF.

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3.0 Description of the Proposed Program

The overall development objectives of TEDAP are to (i) improve the quality andefficiency of the provision of electric service, and to (ii) establish a sustainable basis foraccess expansion. To that extent, the project will have a grid and an off-grid component.The present ESMF covers the off-grid component of TEDAP. Separate safeguarddocuments have been prepared and disclosed for the grid component.

The purpose of the off-grid component is to support an institutional set-up for the newlyestablished Rural Energy Agency (REA) and develop and test new off-grid electrificationapproaches for future scale-up.

The project's global objective, in line with GEF OP6, is to remove the barriers to, andreduce the implementation costs of, renewable energy technologies to help mitigategreenhouse gas emissions. Proposed GEF co-financing supports OP6 strategic priorities- expanding productive uses of renewable energy (institutional solar PV systems forsocial services) and promoting power sector policy frameworks supportive of renewableenergy (stand-alone grids).

To achieve these objectives, the TEDAP is structured into three components as follows;

(i) The grid component to focus on urgent investments in Tanzania Electric SupplyCompany Limited (TANESCO) transmission and distribution network, tentatively US$85million.

There are large investment needs in transmission and distribution as little investmenthas gone into maintaining and replacing T&D systems since the late 1980's.TANESCO's current 5-yr investment plan focuses on capacity expansion and needs tobe complemented with measures to exploit recent advances in energy efficiency anddemand-side management interventions. Of a cumulative investment plan of about US$1.3 billion (which includes access expansion), TANESCO has identified urgent T&Dinvestments of over US$ 100 million for key urban areas, for which bidding packages areeither under preparation or can be prepared very quickly by technical consultants.

The grid component would improve the capacity of existing networks, thus contributingto the financial recovery of TANESCO; improve service quality for existing clients; andallow new clients to connect to the grid in the major urban areas, which are the maingrowth centers. The project would apply some innovative features for improved technicaland commercial performance in these areas, based on experiences in other countries(e.g. Nigeria) to maximize impact of the investments.

Specifically, these investments will improve the power system performance by reducingsystem losses, frequent outages due to overloaded transformers and old equipment, lowand fluctuating voltage conditions and poor system power factors. The investments willinclude adding, replacing or upgrading transmission and distribution lines andsubstations and medium and low voltage equipment, meters, spare parts and tools. Theproject will support investments that aim at improving (i) distribution networks for reliablesupply (ii) commercial character, (iii) customer interface of TANESCO, and possibly (iv)limited access expansion. The main rationale of these investments is to create value in

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the electricity business, and to demonstrate its viability in a replicable manner. Thecomponent will be implemented by TANESCO.

(ii) The off-grid component of US$14 million (plus US$6.5 million of GEF) wouldsupport an institutional set-up for the newly established Rural Energy Agency (REA) anddevelop and test new off-grid electrification approaches for future scale-up. Theinvestments would concentrate particularly on the demonstration of sustainable solarmarket packages and PV market development (scaling up Sida's ongoing operation); theimplementation of several off-grid electrification mini-grids; and the testing of newservice provision models (including private sector, coops, NGOs). The project wouldalso support development of small, renewable, grid-connected projects. Consistent withthe JAS growth strategy, the off-grid component will also focus primarily on those off-gridareas where provision of electricity can spur economic growth (sub-project screeningincludes an analysis of the productive use potential). The component will beimplemented initially by the Ministry of Energy and Minerals (MEM) and passed on toREA once REA's implementation capacity is established. (Sida would support capacitybuilding TA for REA). The component would follow a phased approach, so that themodel projects can be developed in line with the growing REA capacity.

(iii) The technical assistance component of US$ 6 million for a technical assistancewill support preparation of the comprehensive access expansion strategy andsyndication plan, new investment packages (grid and off-grid), support forlegal/technical/financial advisory support for the next least cost IPP, technical studies tooptimize TANESCO operations, support to independent off-grid operators, capacitybuilding for TANESCO, REA, MEM and NEMC and monitoring and evaluation.

The proposed ESMF will regulate environmental and social aspects of the off-gridcomponent only. Safeguards documents for the grid component have also beenprepared and disclosed

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4.0 Baseline Data

4.1 The Bio-Physical Environmental Features

The United Republic of Tanzania lies between 29°30'E and 40030'E, and 1°00'S and11048'S. It is a land of contrasts, being the home of Africa's highest mountain(Kilimanjaro, at 5,895m and its lowest point (the floor of Lake Tanganyika, which is 1,470m deep). Located on the east coast of Africa, it covers an area of approximately 945,000kM2, of which the Zanzibar Islands cover 2,400 km2. The islands of Mafia, Pemba andZanzibar are included in this area. Of this area 61,495 km2 is covered by the inlandwaters of the Great Lakes (Victoria, Malawi and Tanganyika). The country is bordered byUganda to the north for 396km, Rwanda and Burundi to the north-west for 217km and451km respectively, the Democratic Republic of Congo (DRC) to the west for 459km (awater border on lake Tanganyika), Zambia and Malawi to the south-west for about338km and 475km respectively, Mozambique to the south for 756km, and Kenya to thenortheast for 769km. The Indian Ocean, whose shores are characterized by coral reefsand small islands, lies to the east. The continental shelf within the 200-m depth contourvaries from 4-60 km from the shore.

Tanzania experiences a variety of climatic conditions, ranging from the alpine deserts onthe top slopes of Mount Kilimanjaro that are permanently covered by snow, to thetropical coastal areas that are under the influence of two monsoon winds. The north-eastmonsoon wind which blows southwards from December to March brings the hottestweather, while the southeast monsoon winds which blow northwards from March toSeptember bring intermittent rains. The main rainy season on the coast is from March toMay (the 'long rains') with a second season between October and December (the 'shortrains'). Mean annual rainfall varies from 400 mm in the central regions to over 2,500 mmin the highlands and the western side of Lake Victoria. Mean annual temperatures areinfluenced by altitude, ranging from 21 0C in high mountain areas to 29 °C at sea level.

Except for the coastal belt and islands, most of the country is part of the Central AfricanPlateau (1,000-1,500 m above sea level) characterized by gently sloping plains andplateaux, broken by scattered hills and low-lying wetlands. The Central African Plateauis deeply incised by two arms of the Rift Valley: the eastern arm, which includes LakesNatron and Manyara, and the deeper western arm, which contains Lake Tanganyika.Both arms of the Rift converge in the south of the country near the northern end of LakeNyasa (Malawi).

There are seven agro-ecological zones of Tanzania based on climate, physicalgeography, soils, vegetation, land use and tsetse fly occurrence, which are the mainphysical factors that influence opportunities and constraints for crop and livestockproduction.

Tanzania shares three major lakes (Malawi/Nyasa, Tanganyika and Victoria) with othercountries in the region. Other lakes in the country include Masoko, Manyara, Natron andRukwa.

Tanzania also has many permanent and seasonal rivers. Main rivers include theKilombero, Mara, Pangani, Ruaha, Rufiji, Ruvu and Ruvuma.

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Tanzania's wetlands cover about 10% of the country. They are classified as marine andcoastal wetlands, inland wetland systems, rivers and inland flood plains, and artificialwetlands. The marine and coastal wetlands include the mangrove estuary swamps, coralreefs, seaweed and grasses, and intertidal mudflats. The inland wetlands include the RiftValley lakes (Balangida, Eyasi, Manyara, Natron, Nyasa, Rukwa, and Tanganyika),some depression swamps (Bahi and Wembere) and Lake Victoria. The shores of the RiftValley lakes provide a habitat for birds, while Lake Natron serves as the largest flamingobreeding ground in Africa. The soda lakes (Eyasi, Manyara, Natron and Ngorongoro) aretheir feeding grounds. The waters of these lakes and the adjacent land are ofteninhabited by wildlife, which is a major tourist attraction in Tanzania.

Some swamps are important breeding sites for fish. Lake Tanganyika is home to about217 endemic fish species, while Lake Malawi has the most diverse fish speciespopulation (over 600 species). Both lakes are world-famous for their diversity ofaquarium fish. Lake Tanganyika is important nationally for sardine, while Lake Victoriahas a naturally rich and diverse indigenous fish fauna (178-208 species). However, theintroduction of Nile perch has led to the disappearance of several indigenous species.

The flora of Tanzania is extremely diverse, with over 12,700 plant species - a figurecomprising more than one-third of the total plant species in Africa (UNEP 1998). Thishigh diversity of plants is not evenly distributed throughout the country, they are found insix specific ecological zones, namely -

* Moist Forest Mosaic* Coastal Forests and Thickets* Afromontane* Acacia-Savannah Grassland* Acacia-Commiphora Thornbush, and* Brachystegia-Julbernardia-Savannah Woodland.

Proportionately, Tanzania has a much bigger land surface area devoted to resourceconservation (29%) than most countries. The hierarchical protected-area systemconsists of national parks (12), game reserves (28), the Ngorongoro Conservation Area(1), and game-controlled areas (38), comprising a total of 240,000 km2. In addition to thewildlife-protected areas, there are 540 forest reserves covering 132,000 kM2, equivalentto 15% of the total woodland and forest area in Tanzania. There is also the Mafia IslandMarine Park.

Amphibians show high diversity and wide distribution, with high endemism in coastalforests and in the mountain forests of the Eastern Arc Mountains. Tanzania has 293reptile species, which have a wide distribution range and are not greatly threatened byhabitat change. The number of bird species found in Tanzania is 1,065. Of these, 25 areendemic, and all but 3 species are limited to forest habitats. Some 302 species ofterrestrial mammals occur in Tanzania. The keystone species of critical importanceinclude chimpanzee, colobus and mangabey monkeys, elephant, and a dwindlingpopulation of black rhinoceros. The larger carnivores include lion, leopard, cheetah andthe African wild dog. There are over 30 antelope species, and the giraffe populations arethe most numerous in Africa. Tanzania also has a rich menagerie of small mammalspecies, including bats (97species), shrews (32 species) and rodents (100 species).

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Of the 302 species of terrestrial mammals, 13 species (4%) and 5 subspecies areendemic to Tanzania and Kenya, and one subspecies is endemic to Tanzania andUganda. Tanzania also has high numbers and a great species diversity of millipedes,terrestrial molluscs and butterflies. The marine environment has more than 7,805invertebrate species, while about 789 species of freshwater invertebrates (mostlyaquatic insects) are known in Tanzania.

4.2 Energy Resources

Tanzania is well endowed with hydroelectric power whose potential is estimated to be4,700 MW with 21,000 GWH of firm annual energy. The major sites are Masigira (250MW), Mpanga (200MW), Stieglers George (1200 MW), Upper Kihansi (120 MW),Mandera (21MW), Ruhudji (358MW), and Rumakali (222MW). In addition, the potentialof mini/micro hydropower isabout 318 MW out of which only 4.7 has been developed.

The most important gas discoveries in Tanzania are Songo Songo and Mnazi Bay. Thereserves are estimated to be about 30 billion cubic meters and 15 billion cubic metersrespectively.

Coal reserves are found in western and southwestern Tanzania. The total reserve is ofthe order of 1.5 billion tones of which 320 million tones are proven.

4.3 The Key Social Environmental Features4

According to the latest estimates, the population of Tanzania is estimated at 36 millionpeople with a 2.5% growth rate and is made up of mostly around 130 Bantu tribes.

Despite its potential and rich resource endowment, Tanzania is one of the poorestcountries in the world with a per capita GNI of about US$350 in 2005. The economydepends heavily on agriculture, which accounts for over 40% of GDP, provides 85% ofexports, and employs about 80% of the work force. Nearly 90% of the poor in Tanzaniaare in rural areas and the sale of crop and livestock products accounts for about 75% ofrural households' cash income. The severe degradation of land, forests and waterresources that support agriculture has become an obstacle to the revival of the ruraleconomy.

Official estimates suggest that over half of Tanzania's 36 million population lives belowthe international "dolar a day" poverty line, 36% is very poor. Poverty is essentially arural phenomenon, with almost 61% of the rural population is poor compared to 39% ofthe urban population. Income distribution is uneven. In the 1998 rural survey the lowestquintile accounted for only 7% of mean expenditures.

Tanzania's low electricity access rates are serious constraints in rural areas. Despitehealthy real economic growth (above 5% p.a. since 2001), low inflation and adequateforeign exchange reserves, access rates remain low for electricity: less than 10% of theoverall population and only about 1% of the rural population. These low rates are amajor constraint to higher rural non-farm incomes and an improved quality of life that canbe gained not just from improved household lighting, productive activities and from

4Data from Joint Assistance Strategy for URT, March 2007 and Tanzania National Strategy forGrowth and Reduction of Poverty (MKUKUTA) of June 2005

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improved service delivery in rural health, education and water facilities. Biomass,particularly wood-fuel, constitutes 95% of rural energy consumption, contributing toenvironmental degradation.

The rural population with access to electricity is only about 1%. The low consumption ofcommercial energy in rural areas has suppressed economic growth, which is manifestedin low levels of agricultural mechanization and industrialization. Presently, the existingenergy supplies, especially electricity are delivered at high cost. There is lack ofadequate investment and insignificant private participation in rural energy development.

The health and education progress in Tanzania has been slow, although someachievements have been achieved in recent years. Life expectancy at birth increasedfrom 44% in 1978 to 54 years for males and 56 years for females in 2002; infantmortality dropped from 100 to 68 per 1000 between 2000 and 2004, while child mortalitydropped from 141 to 112 per 1000 in 2004. However, infant, child and maternalmortality rates still remain amongst the highest in the world, and more than one third ofall children under five are malnourished The proportion of the rural population withaccess to safe water remains low (47% in 2001). The incidence of HIV/AIDS is high,with 7.0% of the population aged between 15-49, seropositive. In the 1990's HIVinfection rates increased significantly among this group and was higher among women,but recent data indicate a stabilization trend. Communicable diseases (HIV/AIDS,persistent malaria, ARI5 and diarrhea), malnutrition and poor quality health care havebeen major factors in poor survival indicators.

Net primary school enrolment increased from 57 percent in 2000 to 95 percent in 2005,but the illiteracy rate remains high.

The age structure is as follows:

0-14 years: 44.3% (male 7,988,898; female 7,938,979)15-64 years: 53.1% (male 9,429,959; female 9,634,102)65 years and over; 2.6% (male 405,803, female 524,713)

Median age: total: 17.5years, male: 17.2 years and female: 17.7 years

In Tanzania, there are two official languages, Swahili and English.

4.4 Characteristics of Poverty

Based on the results of the in-country consultations with local communities, local andcentral governments and civil society members, during the preparation of this ESMF, thefollowing characteristics of poverty were derived:

Who are the Poor?* Rural households.* Female headed households, other households with less than two adult-members,

elderly and handicapped persons.* Large households.* Urban households.

5 ARI - Acute Respiratory Infection

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The groups are not mutually exclusive.

Why are they poor?

* Rural Households- low agricultural productivity, declining soil fertility and environmental degradation.- lack of access to land, land fragmentation, insecurity of land tenure.- lack of access to markets, absence of rural commercial activity and alternative

income earning opportunities.- poor quality education, lack of access to education, high cost of education.- poor health services and health standards and rise in HIV/AIDS incidence,

impacting negatively on productivity.- Poor nutritional intake- lack of access to low cost capital or micro-credit or micro-grants.- lack of access to affordable and sustainable household energy sources.- Vulnerability

* Female-headed households- shortage of household labor.- declining soil fertility.- many women have to take care of unemployed/unemployable husbands,

dependant parents, dependent orphans.- low education attainment, poor access to land, paid employment and credit.- poor social services, e.g. water, health, education, etc.

* Urban Poor- rapid increase in urban population.- no employment opportunities particularly among poorly educated young people.- poor basic social services and infrastructure.- lack of housing.- lack of land.- high food prices due to low agricultural productivity, high transport costs and

restrictions on petty trade.

* Where are the poor?

Poverty continues to be essentially a rural phenomenon.

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5.0 Description Of The World Bank's Safeguard Policies

This ESMF has been designed so that all investments under the TEDAP will comply withall the Environmental laws of the United Republic of Tanzania and the Environmentaland Social Safeguard Policies of the World Bank. In this chapter, the Bank's safeguardspolicies and their applicability is discussed and in the subsequent chapter those of theURT are presented.

The World Bank Safeguard Policies are;

1. Environmental Assessment (OP4.01, BP 4.01, GP 4.01)2. Natural Habitats (OP 4.04, BP 4.04, GP 4.04)3. Forestry (OP 4.36, GP 4.36)4. Pest Management (OP 4.09)5. Physical Cultural Resources (OP 4.11)6. Indigenous Peoples (OP 4.10)7. Involuntary Resettlement (OP/BP 4.12)8. Safety of Dams (OP 4.37, BP 4.37)9. Projects on International Waters (OP 7.50, BP 7.50, GP 7.50)10. Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)

These policies apply to all activities funded under the TEDAP off-grid componentirrespective of whether or not they are being funded in whole or in part by the WorldBank, Government of Tanzania or any other donor. Therefore, it inconsequential interms of the applicability of this ESMF (and the disclosed RPF) what the source offunding for any activity in TEDAP is. Once an activity is funded by the TEDAP off-gridcomponent, all of the World Bank's safeguards policies apply, if the Bank is to fund theTEDAP. In preparing this ESMF, a consideration of the type of future investmentsplanned vis-a-vis the baseline data presented in Chapter 4 against the requirements ofthe Bank Safeguard policies, has led to the determination that the following Bankpolicies are likely to apply.

OP 4.01 Environmental AssessmentOP 4.11 Physical Cultural ResourcesOP 4.12 Involuntary ResettlementOP 4.37 Safety of DamsOP 7.50 Projects on International Waters

Notwithstanding, since the exact location of the investments ( electrification/powerpackages) was not known at the time of preparation of the TEDAP, and since thegeographic coverage is expected to be country wide, other bank policies may apply andnot all policies selected above may apply simultaneously.

Therefore, a complete description of the bank safeguards and their triggers forapplicability can be found on the World Bank's official web site www.worldbank.org andsummarized in Annex 2.0, to be used as part of the Environmental and SocialManagement process presented in chapter 9. of this ESMF.

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5.1 Environmental Assessment (OP4.01, BP 4.01, GP 4.01)

This policy requires environmental assessment (EA) of projects/programs proposed forBank financing to help ensure that they are environmentally sound and sustainable, andthus to improve decision making. The EA is a process whose breadth, depth, and type ofanalysis depend on the nature, scale, and potential environmental impact of the programinvestments/sub projects under the TEDAP off-grid component. The EA process takesinto account the natural environment (air, water, and land); human health and safety;social aspects (involuntary resettlement, indigenous peoples, and cultural property) andtransboundary and global environmental aspects.

The environmental and social impacts of the TEDAP will come from the sub project/ruralelectrification packages activities of the operators (such as TANSECO and/or otherprivate operators) that will receive financing under the TEDAP for their activities.However, since the location of these sub projects/investments will not be identifiedbefore appraisal of the program, the EA process calls for the GoT to prepare anEnvironmental and Social Management Framework (ESMF) report which will establish amechanism to determine and assess future potential environmental and social impactsduring implementation of the sub project/rural electrification packages under theproposed TEDAP, and then to set out mitigation, monitoring and institutional measuresto be taken during operations of these activities, to eliminate adverse environmental andsocial impacts, offset them, or reduce them to acceptable levels.

OP 4.01 further requires that the ESMF report must be disclosed as a separate andstand alone document by the Government of Tanzania and the World Bank as acondition for bank Appraisal of the TEDAP. The disclosure should be both in Tanzaniawhere it can be accessed by the general public and local communities and at theInfoshop of the World Bank and the date for disclosure must precede the date forappraisal of the program.

The policy further calls for the TEDAP as a whole to be environmentally screened todetermine the extent and type of the EA process. The TEDAP has thus been screenedand assigned an EA Category B. This category of projects/programs is defined asfollows.

Category B projects are likely to have potential adverse environmental impactson human populations or environmentally important areas - including wetlands,forests, grasslands, and other natural habitats - and are less adverse than thoseof category A projects. These impacts are site specific, few if any of them areirreversible, and in most cases mitigation measures can be designed morereadily than for category A projects. The EA process for category B projectsexamines the potential negative and positive environmental impacts andrecommends any measures needed to prevent, minimize, mitigate, orcompensate for adverse impacts and improve environmental performance.

Therefore, this ESMF sets out to establish the EA process to be undertaken forimplementation of program activities in the proposed TEDAP off-grid component whenthey are being identified and implemented.

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This process requires the operators to use the screening form and checklist contained inAnnexes 3.0 and 4.0 respectively, to identify potential adverse impacts of their ruralelectrification package and thereby determine the corresponding mitigation measures toincorporate into their planned activities. Section 9.0 sets the relevant process andrequirements for environmental and social management.

5.2 Involuntary Resettlement (OP/BP 4.12)

The operators/sub project sponsors will make possible efforts to avoid impacts onpeople, land, property, including people's access to natural and other economicresources, as far as possible. Notwithstanding, land acquisition, compensation andresettlement of people seems inevitable for certain type of sub projects located in certainareas. This social issue is of crucial concern to the Government of Tanzania and theBank, as its impact on poverty, if left unmitigated, is negative, immediate andwidespread. Thus, OP 4.12 will be triggered in those cases. Thus a Resettlement PolicyFramework (RPF) has been prepared by the government and approved by the Bank incompliance with OP 4.12. The RPF sets the guidelines for the Resettlement andcompensation Action Plans (RAPs) that would have to be prepared when any programinvestment triggers this policy. The RAPs would be prepared by the sub projectoperators/sponsors and would have to be submitted to the respective District ExecutiveDirector for approval. In some cases the World Bank reserves the right to also any RAPas a condition for that particular sub project investment to be financed.

This policy would be triggered when a program activity, in this case a sub projectsponsors rural electrification package, for example, causes the involuntary taking of landand other assets resulting in: (a) relocation or loss of shelter, (b) loss of assets or accessto assets (c) loss of income sources or means of livelihood, whether or not the affectedpersons must move to another location.

The World Bank Safeguard policy OP 4.12, in most cases, is not triggered becausepeople are being affected by physical displacement. It is triggered because the programactivity causes land acquisition, whereby a physical piece of land is needed and peoplemay be affected because they are cultivating on that land, they may have buildings onthe land, they maybe using the land for water and grazing of animals or they mayotherwise access the land economically, spiritually or any other way which may not bepossible during and after the sub project is implemented. Therefore, people are in mostcases compensated for their loss (of land, property or access) either in kind or in cashor both.

The resettlement policy applies to all displaced persons regardless of the total numberaffected, the severity of the impact and whether or not they have legal title to the land.Particular attention should be paid to the needs of vulnerable groups among thosedisplaced. The policy also requires that the implementation of the resettlement plans area pre-requisite for the implementation/start of the construction to ensure thatdisplacement or restriction of access does not occur before necessary measures forresettlement and compensation are in place. For chosen sites involving land acquisition,it is further required that these measures include provision of compensation and of otherassistance required for relocation, prior to displacement, and preparation and provisionof resettlement sites with adequate facilities, where required. In particular, the taking ofland and related assets may take place only after compensation has been paid, andwhere applicable, resettlement sites, new homes, related infrastructure and moving

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allowances have been provided to displaced persons. For program activities requiringrelocation or loss of shelter, the policy further requires that measures to assist thedisplaced persons are implemented in accordance with the project resettlement plans ofaction. The policy aims to have the displaced persons perceive the process to be fairand transparent.

Where there is a conflict between the Laws of Tanzania and the Bank OP4.12, the lattermust take precedence if the Bank is to fund this project.

Finally, OP 4.12 also requires the RPF to be disclosed both in Tanzania and at theinfoshop of the Bank before appraisal.

5.3 Safety of Dams (OP 4.37, BP 4.37)

The Bank may finance types of projects/programs that do no include a new dam but willrely on the performance of an existing dam such as water supply systems that drawdirectly from a reservoir controlled by an existing dam, diversion dams or hydraulicstructures downstream from an existing dam, where failure of the upstream dam couldcause extensive damage to or failure of a new Bank-funded structure; and or irrigation orwater supply projects that will depend on the storage and operation of an existing dam.Projects/programs in this category also include operations that require increases in thecapacity of an existing dam, or changes in the characteristics of the impoundedmaterials, where failure of the existing dam could cause extensive damage to or failureof the Bank-funded facilities.

Activities in some types of electrification packages to receive financing under the TEDAPoff-grid component, such as hydropower type sub projects, may involve theuse/rehabilitation of existing dams (large and small), or the construction of new dams.Whereas other type sub projects may depend only on the use of existing dams. In theseparticular cases, the dams will probably used for one or a combination of these reasons;

i) as a reservoir.ii) to manage water flow and levels in rivers/lakes.iii) provision of head of water.

Therefore, for sub projects that involve the use of existing dams, the Bank requires thatthe sub project sponsors arrange for one or more independent dam specialists to:

(a) inspect and evaluate the safety status of the existing dams or theirappurtenances, and its performance history;

(b) review and evaluate the owner's operation and maintenance procedures; and

(c) provide a written report of findings and recommendations for any remedial workor safety-related measures necessary to upgrade the existing dams to anacceptable standard of safety.

The Bank may accept previous assessments of dam safety or recommendations orimprovements needed in the existing dam if the project sponsors or theowners/operators of the Dam provides evidence that;

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(a) an effective dam safety program is already in operation, and(b) full-level inspections and dam safety assessments of the existing dam, which are

satisfactory to the Bank, have already been conducted and documented.

For sub projects that involve the construction of new dams, the Bank requires that thedam be designed and its construction supervised by experienced and competentprofessional. It also requires that the sub project sponsor adopt and implement certaindam safety measure for the design, bid, tendering, construction, operation, andmaintenance of the dam and associated works. The Bank distinguishes between smalland large dams.

Small dams are normally less than 15m in height. This category includes, for example,low embankment tanks. Large dams at 15m or more in height. Dams that are between10 and 15m in height are treated as large meters in height are treated as large dams ifthey present special design complexities -for example, an unusually large flood-handlingrequirement, location in a zone of high seismicity, foundations that are complex anddifficult to prepare, or retention of toxic materials. Dams under 10 meters are treated aslarge dams if they are expected to become large dams during the operation of thefacility.

For small dams, generic dam safety measures designed by qualified engineers areusually adequate. For large dams, the Bank requires, (i) reviews by an independentpanel of experts of the investigation, design, and construction of the dam and the start ofoperations, (ii) preparation and implementation of detailed plans, a plan for constructionsupervision and quality assurance, an instrumentation plan, an operation andmaintenance plan, and an emergency preparedness, (iii) pre-qualification of biddersduring procurement and bid tendering, and (iv) periodic safety inspections of the damafter completion.

5.4 Projects on International Waters (OP 7.50, BP 7.50, GP 7.50)

This policy applies when potential international water rights may be an issue, for subprojects on the following type of international waterways in Tanzania:

(a) any river, canal, lake, or similar body of water that forms a boundary between, orany river or body of surface water that flows through, two or more states

The Lakes Victoria, Nyasa and Tanganyika, are on the borders with neighboringstates.

(b) Any tributary or other body of surface water that is a component of any waterwaydescribed in (a) above.

Many rivers in Tanzania get either their source or flow directly into one theselakes.

(c) Any bay, gulf, strait, or channel bounded by two or more states or, if within onestate, recognized as a necessary channel of communication between the open seaand other states, and any river flowing into such waters.

This policy applies to water and energy/power type projects funded by the Bank.

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Projects on international waterways may affect relations between the Bank and itsborrowers and between states (whether members of the Bank or not). The Bankrecognizes that the cooperation and goodwill of riparians is essential for the efficient useand protection of the waterway. Therefore, it attaches great importance to riparians'making appropriate agreements or arrangements for these purposes for the entirewaterway or any part thereof. The Bank stands ready to assist riparians in achieving thisend.

This policy requires the GoT, if it has not already done so, formally to notifyriparians of the proposed TEDAP and its details for the activities of sub projectoperators that are on international waterways as defined in 5.4 (a), (b) and (c)above, as soon as they known.

5.5 Cultural Property (OP/BP 4.11)

Cultural property includes sites having archaeological (prehistoric), palaentologicalhistorical, religious and unique natural values. The Bank will normally decline to financea sub project that will significantly damage non-replicable cultural property, and willassist only those sub projects that are sited or designed so as to prevent such damage.

It is not anticipated that the sub-projects will adversely affect sites having archeological,paleontological, historical, religious, or unique natural values as defined under the OP 4.11. However, a screening mechanism is proposed to ensure that any such sites areidentified and avoided or impacts are mitigated, in line with the cultural resources policy.Awareness of possible chance finds will be raised among the public, the projectcontractors and operators, and chance-find procedures will be included in constructioncontracts.

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The screening mechanism includes:

Summary of Requirements of Bank Safeguards Policies Triggered by the activitiesin the TEDAP.

Bank Safeguards Action Required by By Whom Date action requiredPolicy Triggered. Triggered Policy by.OP 4.01 1)Preparation of ESMF 1) ESMF by GoT 1) ESMF to be approvedEnvironmental (this document) by Bank and disclosed inAssessment Tanzania and Bank

2) Preparation of sub Infoshop before progranproject ESIA's ( see 2) Sub project appraisal date.section 9.0 of this ESIA's by subreport) project sponsors 2) Sub project ESIA's to

be approved by NEMCoffice and disclosed inTanzania before licenseis granted by theRegulator.

OP 4.12 1) Preparation of RPF. 1) RPF by GoT 1) RPF to be approvedInvoluntary by Bank and disclosed inResettlement 2) Preparation of Sub Tanzania and Bank

project RAPs. 2) RAPS by Sub Infoshop before programproject sponsors appraisal date.

2) Sub project RAPs tobe approved by therespective DistrictExecutive Director anddisclosed in Tanzaniabefore license is grantedby the Regulator.

OP 4.37 1) Preparation of Dam 1) and 2) By sub 1) and 2) To beSafety of Dams Safety Measures project sponsors. approved by NEMC and

Report for rehab. of disclosed in Tanzaniaexisting small dams. before license is granted

by the Regulator .2) Use of experiencedand competentprofessional .

OP 7.50 Notification of Riparian GoT Before Bank appraisal ofProjects on Countries TEDAP.International Waters

OP 4.11 Cultural Property 1) ESMF by GoT 1) Before appraisal

2) In construction 2) Before contract awardcontracts

Table 5.1

6.0 Description of the Administrative, Policy, Legislative andRegulatory Framework.

6.1 Administrative Structure for the Energy Sector

The United Republic of Tanzania is made of mainland Tanzania and the Indian Oceanislands of Zanzibar.

Administratively, the URT is divided into Regions, Districts, Divisions, Wards andVillages. The Village being the smallest administrative area and is closest to thecommunities.

The role of Government for the Energy Sector is to facilitate development, providestimulus for private investment initiatives, and promote effective regulation, monitoringand co-ordination of the sector.

The responsibility is with the Ministry of Energy and Minerals (MEM), which supervisesthe implementation of the energy policy, which is the main guidance for change, backedby legislation and regulation. The ministry will also facilitate mobilization of resourcesinto areas where market forces fail to ensure adequate energy services.

The roles and relation of the different actors, the ministry, regulators and operators of thesector are determined by legislation. Through the regulatory functions of the sector,operators will be licensed, markets and performance will be monitored and necessaryregulatory measures will be applied.

The mission of the MEM is to create conditions for the provision of safe, reliable,efficient, cost effective and environmentally appropriate energy services to all sectors ona sustainable basis and thereby contribute to the economic growth of the country. TheMEM has two technical divisions and four support departments. The technical divisionsare the Energy and Petroleum Affairs, and Minerals, while the support departments areAdministration and Personnel, Accounts, Internal Audit and Policy and Planning. TheDivision of Energy and Petroleum Affairs is divided into four sections. Through its foursections: Electricity, Petroleum and Gas Energy Development and Renewable Energy,the Energy and Petroleum Affairs Divisions is, inter alia, directly responsible for;

i) Formulation of sector policy and strategy formulation, implementation andmonitoring of the programmes with respect to power, petroleum, new andrenewable sources of energy sub-sectors, and energy efficiency;

ii) Major energy procurement, development, resource allocation and energypricing policy formulation;

iii) Coordination of energy sector development programmes with those ofother sectors and other countries in the region and beyond;

iv) Supply and distribution of petroleum products;

v) Development, promotion, dissemination or Renewable EnergyTechnologies (RET); and

vi) Promotion of energy efficiency in all sectors of the economy.

The main supplier of electricity in Tanzania is the Tanzania Electricity Supply Company(TANESCO), which is a state owned monopoly (parastatal). The existing installedgenerating capacity of TANESCO is 793MW comprising of 561MW Hydro, 202MWthermal and 30MW isolated diesel stations. Additional capacity in the form of a 100MWIPP medium speed diesel plant is expected on stream and the conversion of a 112MWgas turbine plant at Ubungo now running on liquid fuel to run on natural gas from SongoSongo gas fields.

Three independent power producers (IPPs) supply power to the national grid. A 100MWdiesel plant by Independent Power Tanzania Ltd., and two small plants of Kiwira CoalMine and Tanganyika Wattle Company, both supply bulk power of about 4MW. IPPcapacity will increase when the 112 MW Ubungo diesel turbines are converted into gasto electricity generation and privatized in 2004.

Tanzania also imports electricity through cross-border interconnections of about 8MWand 5MW from Uganda and Zambia, respectively.

6.2 The Policy Framework for the Energy Sector

The first National Energy Policy for Tanzania was formulated in April 1992, which wasrevised in 2003.

The overall policy objective is to "provide an input in the development process byestablishing and efficient energy production, procurement, transportation, distribution,and end-user systems in an environmentally sound manner and with due regard togender issues".

The key policy objectives are;

i) To increase access to affordable and reliable energy services, to meetthe basic needs of the poor, stimulate productive capacity and to meetenergy needs for community services such as schools, clinics, and watersupply facilities;

ii) To stimulate economic development to provide input into the developmentprocess by establishing an efficient energy production, transportation,distribution, and end users systems in an environmentally sound mannerwith due regards to gender issues.

iii) To build gender balanced capacity in planning, implementation andmonitoring the energy sector projects.

iv) To improve energy governance systems in the power sector bydifferentiating the roles for policy making and legislative functions,regulatory functions and the functions of the private and public operators.

v) To reform the market for energy services by restructuring the TanzaniaElectricity Supply Company (TANESCO) for increasing efficiency andattracting private investment in the sector.

vi) To adequately take into account the environmental considerations for allenergy activities by promoting access to improved technologies for

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promotion of energy efficiency and conservation in all sectors andreduction of the negative environmental impacts of energy consumption.

vii) To enhance the development and utilization of indigenous renewableenergy sources and technologies for expansion of electrification servicesto rural areas, in order to reduce deforestation, indoor health hazards,and time spent by rural women in search of firewood.

Specifically with regards Rural Energy, policy statements;

i) support research and development of rural energy.ii) Promote application of alternative energy sources other than fuelwood

and charcoal, in order to reduce deforestation, indoor health hazards andtime spent by rural women in search of firewood.

iii) Promote entrepreneurship and private initiative in production andmarketing of products and services for rural and renewable energy.

iv) Ensure continued electrification of rural economic centres and makeelectricity accessible and affordable to low income customers.

v) Facilitate increased availability of energy services, including grid and non-grid electrification to rural areas.

vi) Establish norms, codes of practice, standards and guidelines for costeffective energy supplies.

Following the launching of Tanzania's revised National Energy Policy, formally adoptedin 2003, a restructuring of the energy sector was initiated. The policy made a divisionbetween commercial and rural energy services, giving the Ministry of Energy andMinerals (MEM) the responsibility to increase government efforts to ensure that ruralareas and poor households have access to modern energy services. This required anew institutional set up, and a fund for subsidising non-profitable energy provision. In2005, a new law6 was passed, enabling the establishment of a Rural Energy Agency(REA) and a Rural Energy Fund (REF). REA Board has been appointed and itsmanagement is being recruited.

The Rural Energy Act 2005 which establishes "the Rural Energy Board, Fund andAgency to be responsible for promotion of improved access to modern energy servicesin the rural areas of Mainland Tanzania and through a Fund within the Agency Board toprovide for grants and subsidies to developers of rural energy projects and for relatedand consequential matters." The Act sets out the principles of rural energy development,procedures for establishment of the Rural Energy Board (REB), the Rural EnergyAgency (REA) and the Rural Energy Fund (REF), as well as guidelines for managementof the fund.

MEM is now launching an ambitious access scale-up program through an establishmentof the Rural Energy Agency and the Rural Energy Fund with a target to reach 25%electrification by 2010, using lower-cost technology and transparent, results-orientedsubsidies delivered to TANESCO as well as to other competitive service providers(private, cooperatives, NGOs etc.). To maximize the impact, there will be a focus onelectricity provision to rural enterprises and social facilities, the latter in order to provide

6The Rural Energy Act, 2005

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the benefits of increased access to a far broader cross-section of the population withinten years than is possible with just a household connection program.

6.3 The Policy Framework for Decentralization by Devolution

In 1998, the Prime Ministers office decided to make changes in the legislation which willenable the government to: (a) proceed with the implementation of the local governmentreform according to the government's visions and objectives for a strengthened localgovernment system; (b) co-ordinate and give direction to the work on sector reforms sothat they are consistent with objectives for the civil service and local government reform;and (c) to fulfill government commitments.

This policy paper on Local Government Reform is based on recommendations from theNational Conference on a shared vision for local government in Tanzania, May 1996; thelocal Government Reform Agenda of November 1996; discussions andrecommendations with the Association of Local Authorities in Tanzania (ALAT),representatives from local authorities, sector ministries and other central governmentorgans in various for fora.

The Tanzania local government system is based on political devolution anddecentralization of functions and finances within the framework of a unitary state. Localgovernments will be holistic, i.e. multi-sectoral, government units with a legal status (body corporate) operating on the basis of discretionary, but general powers under thelegal framework constituted by the national legislation. Local governments have theresponsibility for social development and public provision within their jurisdiction,facilitation of maintenance of law and order and issues of national importance such aseducation, health, water, roads and agriculture. Local governments have constitutedunitary governance systems all over the country based on elected councils andcommittees and a professional administration.

Decentralization of government thus includes four main policy areas;

B. Political decentralization is a devolution of powers and the setting of the rulesfor councils and committees, etc.

C. Financial decentralization is based on a definition of the principles of financialdiscretionary powers of local councils, i.e powers to levy local taxes and theobligation of central government to supply local governments with adequateunconditional grants and other forms of grants.

D. Administrative decentralization involves de-linking local authority staff fromtheir respective ministries and procedures for establishment of a local payroll.Local governments will thus have and recruit their own personnel, makingthem accountable to their local councils.

E. Changed central-local relations: The role of central government vis-a- vislocal councils will be changed into a system of inter-governmental relationswith central government having the over-riding powers within the frameworkof the constitution. Line ministries will change their role and functions intobecoming, (i) policy making bodies, (ii) supportive and capacity buildingbodies, (iii) monitoring and quality assurance bodies within the localgovernment legislation framework, and (iv) regulatory bodies (legal controland audit).

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The Minister responsible for local government will co-ordinate central-local relationsand in particular all initiatives from sectoral ministries on matters relating to localgovernment.

6.4 The Legislative and Regulatory Framework for the Energy Sector

The principal legislation is the Electricity Ordinance (Cap. 131) which is the governinglaw of the sector that dates back to 1931. Since it enactment, it has been amend in 1957and 1961. More recently also, a Water and Electricity Regulatory Act has been passedby Parliament and establishment of the Regulator is expected later this year.

An Electricity Sector Reform bill has been drafted, and is also expected to be passed byparliament later this year.

The Electricity and Water Utility Regulatory Agency (EWURA), will issue the licenseto the operators.

The Rural Energy Act of 2005 established "the Rural Energy Board, Fund and Agencyto be responsible for promotion of improved access to modern energy services in therural areas of Mainland Tanzania and through a Fund within the Agency Board toprovide for grants and subsidies to developers of rural energy projects and for relatedand consequential matters." The Act sets out the principles of rural energy development,procedures for establishment of the Rural Energy Board (REB), the Rural EnergyAgency (REA) and the Rural Energy Fund (REF), as well as guidelines for managementof the fund.

6.5 The Legislative and Regulatory Framework for Decentralization

The principal legislation for decentralization by devolution are the following

* The Local Government ( District Authorities) Act, No. 7 of 1982* The Local Government ( Urban Authorities) Act, No. 8 of 1982* The Local Government Finances Act, No. 9 of 1982* The Local Government Negotiating Machinery Act, No. 11 of 1982* The Local Government Services Act, No. 10 of 1982* The Urban Authorities (Rating) Act, No. 2 of 1983* The Local Authorities Elections Act, No. 4 of 1979* The Local Government Authorities ( Decoration of Building) Act, No. 9 of 1968* The Regional Administration Act, No. 19 of 1997

6.6 Management and Administration Framework for the Environment

With regards to the management of the bio-physical environment throughout Tanzania,the overall responsibility lies with the Office of the Vice President. There is also a cross-sectoral technical committee composed of members from various sectors. The membersof the Technical Review Committee (TRC) are:

* The Ministry responsible for Environment ( Vice President's Office)* Ministry responsible for forestry, fisheries, wildlife and tourism

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* Ministry responsible for Urban and Rural Planning* Ministry responsible for Agriculture* Ministry responsible for Water* Ministry responsible for Energy and Minerals* Ministry responsible for Works and Communication* Ministry responsible for Industry and Trade* Institute of Resource Assessment - University of Dar es Salaam* National Environment Management Council (NEMC)

NEMC is the secretariat to the TRC.

6.6.1 The Office of the Vice President

The vision of the Ministry of Environment of the Office of the Vice President is "to attainsustainable human development, eradication of poverty, security and equitable use ofresources on a sustainable basis to meet the basic needs of the present and futuregenerations without degrading the environment or risking health or safety and alsomaintain the union between the mainland Tanzania and Zanzibar".

The mission of the Vice-President's office is "to formulate policies and strategies onpoverty eradication, protection of environment and non-governmental organizations aswell as co-ordinate all issues pertaining to the mainland Tanzania and Zanzibar".

The Office of the Vice President (VP's office) is the ministry responsible for policy,planning and implementation oversight on issues relating to the Environment inTanzania. The VP's office is therefore responsible for overall policy guidance and adviceon the development of strategic environmental vision, including formulation, analysis andappraisal of broad environmental policy, as well as formulation and review of broadenvironmental goals, in conformity with such vision. The VP's office provides a basis fora broad political legitimacy for the administration of strategic policy decisions on aroutine and continuous basis for coordinated environmental management.

6.6.2 The National Environment Management Council (NEMC)

The National Environment Management Council (NEMC) is a semi autonomousgovernment organization/council under the Vice President's Office,answerable directly to the Permanent Secretary in the VPO.

The EMA 2004 states that the object and purpose for which NEMC is established is toundertake enforcement, compliance, review and monitoring of environmental impactassessment and in that regard, shall facilitate public participation in environmentaldecision making, exercise general supervision and coordination over all matters relatingto the environment assigned to the Council, under this Act or any other written law.

Among the specific functions of the NEMC are;

* Review and recommend for approval of environment impact statements.* Identify projects and programs or types of projects and programs, for which

environmental audit or environmental monitoring must be conducted.* Enforce and ensure compliance of the national environmental quality standards.

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NEMC has prepared a comprehensive EIA procedure and guidelines dated March 2002.

6.6.3 Environmental Sections

Environmental sections at sectoral and district level are the collaborating partners in theEIA process. The linkages between NEMC and the sectoral and district environmentalunits are legally binding to ensure clear lines of command to facilitate effectiveimplementation. The roles and responsibilities of these units shall be the following:

Sectoral Environmental Sections

a) with assistance from NEMC to develop sectoral guidelines within the frameworkof the national EIA guidelines,

b) to issues EIA registration forms to operators and provide relevant information onpolicies and other administrative requirements

c) to assist the general EIA process administration at sectoral level.

District Environment Committees

a) to issue EIA registration forms to operators and provide relevant information onpolicy, legal and other administrative requirements at the district level,

b) to co-ordinate EIA process at district levelc) to link and liaise with the NEMC on all undertakings within the district.

The composition of the District Environmental Committee

* District Planning Officer - as coordinator of the planning process.* District Natural Resources Officer - manages the development of natural

resources/forestry, wildlife, bee keeping, fisheries etc.)* District Agricultural and Livestock Development Officer - responsible for land-use

and management* District Water Engineer* District Health Officer* Co-opted members ( depending on nature of project)

* 6.7 The EIA Process in Tanzania

The EIA process in Tanzania is presented in Part VI of the EMA 2004 and also in the"General Environmental Impact Assessment Guidelines and Procedure", prepared byNEMC ( revised March 2002), which contains five volumes as follows:

* Volume 1: The main document that elaborates the proposed EIA procedure.* Volume 2: Screening and scoping guidelines.* Volume 3: Guidelines on report-writing.* Volume 4: Guidelines for EIA review and monitoring.* Volume 5: A checklist of environmental characteristics (i.e physical, ecological,land use, cultural and socio-economic characteristics).

Where there is a conflict between the two, the EMA 2004 governs.

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It should be noted that each individual sub-project to be conducted under theTEDAP off-grid component must be registered and subjected to environmentalscreening and environmental assessment conducted professionally by expertsand reviewed by mandated institution.

The EIA procedure involves the following:

* Registering a project: The operator is required to register the project with the NEMC.

* Screening: The project is classified to determine the level at which the environmentalimpact assessment (EIA) should be carried out. Environmental 'Screening' isobligatory/mandatory for all projects be micro/small or macro.

* Scoping: This involves producing a Scoping Report together with a draft Terms ofReference for conducting the proposed EIA study. The Scoping Report and draft TORare submitted to NEMC for review, improvement and approval.

* Conducting an EIA:

* Reviewing the EIA: A Technical Review Committee established by the NEMC reviewsthe EIA and recommends to the Minister responsible for Environment whether the EIA isacceptable or not.

* Issuing the relevant permits: The Minister responsible for the environment may uponthe recommendation of the NEMC approve the EIA and issue an Environmental ImpactAssessment Certificate.

The Minister may delegate power of approval of EIA to the Director of Environment, localgovernment authorities or sector ministries.

* Decision-making: A decision is made as to whether a proposal is approved or not; arecord of decision explains how environmental issues were taken into consideration.

* Monitoring project implementation: The operator prepares and executes anappropriate monitoring program (i.e. an environmental management program).

* Auditing the completed project: The NEMC undertakes periodic and independentaudits of the project. Depending on its findings, it will issue an Environmental AuditingReport.

* Decommissioning the project upon its completion: A decommissioning report isprepared at the end of the project life. This report outlines the restoration/rehabilitationactivities to be carried out by the operator and is lodged with the NEMC.

6.9 Extent of public participation

Public participation is required during the scoping stages and while fulfilling the terms ofreference for the impact assessment of the EIA process. The operator is responsible foridentifying interested and affected parties and ensuring that all parties concerned are

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given adequate opportunity to participate in the process. A public information program isinitiated, and public notices are issued during the scoping and EIA stages.Whenever a strong public concern over the proposed project is indicated and impactsare extensive and far-reaching, the NEMC is required to organize a public hearing. Theresults of the public hearing should be taken into account when a decision is takenwhether or not a permit is to be issued.

6.10 Policy Framework for the Management of the Environment

Tanzania published its National Environmental Policy (NEP) in December 1997 and theNational Conservation Strategy for Sustainable Development, the NationalEnvironmental Action Plan (NEAP) and specific sectoral policies such as those on land,mining, energy, water, agriculture, population and fisheries. The NEP recognizes the EIAprocess as a means of ensuring that natural resources are soundly managed, and ofavoiding exploitation in ways that would cause irreparable damage and social costs.

The NEP seeks to provide the framework for making the fundamental changes that areneeded in order to incorporate environmental considerations into the mainstream ofdecision making. The NEP seeks to provide guidance and planning strategies indetermining how actions should be prioritized, and provides for the monitoring andregular review of policies, plans and programs. It further provides for sectoral and cross-sectoral policy analysis, so that compatibility among sectors and interest groups can beachieved and the synergies between them exploited. The overall objectives of the NEPare, therefore, the following:

* To ensure the sustainability, security and equitable use of resources in meeting thebasic needs of present and future generations without degrading the environment orrisking health and safety.

* To prevent and control the degradation of land, water, vegetation, and air, whichconstitute our life support systems.

* To conserve and enhance our natural and man-made heritage, including the biologicaldiversity of Tanzania's unique ecosystems.

* To improve the condition and productivity of degraded areas, as well as rural and urbansettlements, in order that all Tanzanians may live in safe, healthy, productive andaesthetically pleasing surroundings.

* To raise public awareness and understanding of the essential links between theenvironment and development, and to promote individual and community participation inenvironmental action, and

* To promote international cooperation on the environment agenda, and expandparticipation and contribution to relevant bilateral, sub regional, regional, and globalorganizations and programs, including the implementation of treaties.

6.11 Legislative Framework for the Management of the Environment

Under Article 27 of the Constitution, the public is called upon to ensure that the naturalresources of the country are managed properly:

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(1) Every person is obliged to safeguard and protect the natural resources of the UnitedRepublic, State property and all property jointly owned by the people ...

(2) All persons shall by law be required to safeguard State and communal property, tocombat all forms of misappropriation and wastage and to run the economy of the nationassiduously, with the attitude of people who are masters of the fate of their nation.

On February 8th, 2005, the Environment Management Act, 2004, was assented into lawby the President of the URT, an act which provides legal and institutional framework forsustainable management of the environment; to outline principles for management,impact and risk assessments, prevention and control of pollution, waste management,environmental quality standards, public participation, compliance and enforcement; toprovide basis for implementation of international instruments on environment; to providefor implementation of the National Environment Policy; to repeal the NationalEnvironment Management Act , 1983 and provide for continued existence of theNational Environment Management Council; to provide for establishment of the NationalEnvironmental Trust Fund and to provide for other related matters.

Table 6.1: Other Existing key policies and laws relating to EnvironmentalManagement Act or policy Key elements implementing authority

Act Key Elements Implementing AuthorityNational Environmental The Act provides for the National EnvironmentalManagement Council (NEMC) establishment of the NEMC, as Management CouncilAct, No. 19 of 1983 (repealed by well as all functions and otherEMA 2004) matters related and incidental to

its establishment.Wildlife Conservation Act, The Act protects wildlife and Ministry of Tourism and NaturalNo. 12 of 1974, as amended vegetation by restricting the Resources

utilization of wildlife to license-holders. The use of sensitivewildlife habitats is restrictedduring certain times of the year orfor specified periods.

Fisheries Act, No. 6 of 1970 The Act limits annual catches. Division of Fisheries,Specific regulations were Ministry of Tourism and Naturalintroduced in 1973 and 1982, Resourcesputting limitations on methods offish harvesting, includingoutlawing of dynamiting andpoisoning.

Water Utilization and Control The Act establishes temporary Ministry of Water and LivestockAct, No. 42 of 1974 standards for public use, as well Development

as effluent discharge standards.Urban Water Supply The Act gives the National Urban National Urban Water Authority,Act, No. 7 of 1981 Water Authority powers to monitor Ministry of Water and Livestock

and control surface water and Developmentgroundwater pollution andspecifies punitive measures forviolators of this act.

Mining Act, No. 17 of 1980, as The Act sets out government Ministry of Energy and Mineralsamended policy on all forms of mining and

is supported by variousregulations covering claims,prospecting rights, mining rightsand royalties. Mining license

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applicants are required to submitplans for environmentalprotection. Each industry isrequired to establish realisticresource recovery standards andto adhere to them. Mining plansare required to be presentedbefore operations begin.

Forestry Policy of 1993 The revised Policy continues to Division of Forestry,recognize the important role of Ministry of Tourism and Naturalforests in the maintenance of the Resourcesenvironment, the provision offorestry products and theprotection of watersheds andbiodiversity.

Land Act, No. 4 of 1999 Private Group Property is given Ministry of Lands and Humaneither through Granted Rights in SettlementGeneral and Reserved Land(Land Act, Section 19) or throughCustomary Rights in VillageLands (Village Land Act, Section22). Provision is also made forholding land by joint occupancy oroccupancy in common(Land Act, Part XIII).

Village Land Act, No. 5 of 1999 The Act requires each village to Ministry of Lands and Humanidentify and register all communal Settlementland, and obtain the approval ofall members of the village foridentification and registration(Village Assembly, Section 13). ARegister of Communal Land(Section 13(6)) is to bemaintained by each Village LandCouncil, and land cannot beallocated to individuals, families,or groups for private ownership(Section 12(1)(a)).

Local (District and Urban) Local Authorities are empowered Local AuthoritiesAuthorities Act, No. 7 of 1982 to make by-laws regarding the

protection of soil, agriculture,water supplies and other naturalresources. The Act containsprovisions to protect humanhealth and regulate pollutionproblems.

Merchant Shipping Act of 1967 Atmospheric pollution isaddressed only minimally inTanzanian legislation. The Actprohibits the emission of darksmoke from ships for more thanfive minutes in any hour within thelimits of a port.

Town and Country Planning The Ordinance was intended to National Land Use PlanningOrdinance, of 1966, Chapter 378 establish a land-use planning Commission

scheme for designated areas. TheNational Land Use PlanningCommission was established toadvise Government on land

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conservation and development.Public Health, Sewerage and The Ordinance prohibits the Ministry of Health and SocialDrainage Ordinance, discharge of certain substances WelfareChapter 336 into sewers. Violation of the

Ordinance is an offence, andpenalties may be imposed onoffenders.

6.11 International Conventions

Tanzania is a party to many international agreements on Biodiversity, Climate Change,Desertification, Endangered Species, Ozone layer protection, Marine Life Conservation,etc. Examples are:

* Basel Convention on the Control of Transboundary Movements of HazardousWastes and their Disposal (1989)

* Convention Concerning the Protection of the World Cultural and NaturalHeritage, Paris (1972)

* Development, Production and Stockpiling of Bacteriological ( Biological) andToxin Weapons, and their Destruction, London (1972)

* Convention on Biological Diversity* Convention on International Trade in Endangered Species of Wild Fauna and

Flora (CITES) (1973)* Convention on the Ban of the Import into Africa and the Control of

Transboundary Movement and Management of Hazardous Wastes Within Africa,Bamako, Mali (1991)

* UN Convention to Combat Desertification in Countries Experiencing SeriousDrought and/or Desertification particularly in Africa (1994)

* Lusaka Agreement on Co-operative Enforcement Operations Directed at illegalTrade in Wild Fauna and Flora (1994)

* Montreal Protocol on Substances that Deplete the Ozone Layer (1987)* Phyto-sanitary Convention for Africa, Kinshasa (1967)* UN Convention on the Law of the Sea (1982)* UN Framework Convention on Climate Change (1983)* Vienna Convention for the Protection of the Ozone Layer.

6.12 Membership of International River Basin Commissions.

Tanzania is a member of the following international River Basin Commissions:

Nile Basin Commission.

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7. Determination of Potential Environmental and Social Impacts

7.1 Potential Environmental Concerns and Impacts

7.1.1 Generic Environmental Concerns

The National Environment Policy (NEP) identifies the following as the critical

environmental problems facing Tanzania today:

* Land Degradation* Lack of accessible, good quality water for both urban and rural inhabitants

* Environmental Pollution, e.g. Water Contamination* Loss of Biodiversity, Habitat and Wetlands* Deterioration of Aquatic Systems* Deforestation

The Tables 7.1 to 7.7 presents the root and immediate causes for these environmental

problems and discusses the impacts and their severity, providing the background

against which any potential adverse impacts on the environment from the activities of the

TEDAP can be determined and analyzed.

Land Degradation: From soil erosion, soil exhaustion and overgrazing. A problem throughout Tanzania.

Particularly around the steep hills in Mwanza, Mara, and Kagera region; lakeshores

Immediate Causes Root Causes Impacts Severity

. Massive continued loss of . Population pressure and * Loss of top soil and HIGH

vegetative cover due to poverty leading to reduction of soil fertility

deforestation and loss of other unsustainable land use leading to decrease in

land cover, deterioration of practices. agricultural production and

catchment buffer zones. food security.

* Topography (uneven relief,

* Inappropriate agricultural high stream flow velocities) * Reduction of vegetative

practices leading to decreased and rainfall patterns (floods, cover and loss of habitats

soil quality and erosion, such as droughts, climate variability) and biodiversity.

use of marginal lands,overgrazing and free grazing. . Lack of land use policies and * Water quality degradation

improper land use from high sediment loads,

* Lack of soil and water management; weak siltation of shallow lakes,

conservation measures and/or extension service on soil wetlands, reservoirs, and

abandonment and poor conservation often valley bottoms and other

maintenance of anti-erosion connected with prevalent low lying lands

works. land tenure system. downstream.

* Bush fires and slash and burn . High livestock density * Degradation of river beds

practices. and river bank erosion;

. Lack of awareness of land- desertification and windwater interaction erosion (northern arid

regions), sheet and rill

. Lack of systematic erosion and gully formationimplementation of EIA for (after heavy rainfall) ininfrastructure projects due to highlands.lack of financial and humanresources. . Landslides and flooding

leading to destruction ofinfrastructure (houses,means of communication,communal facilities, etc.)

Table 7.1 43

River Bank and Lakeshore Degradation. For e.g. at River estuaries into lakes.

. Poor land use and agricultural * Lack of or insufficient * Destruction of vegetative MODERATEpractices such as dry season national land use plans, laws cover especially lake shorecultivation near banks and and regulations, and/or buffer zones.destruction of vegetative cover to enforcement of existing laws. . Erosion, landslides, andincrease arable land area; high downstream sedimentationanimal density. * Population pressure and leading to change in river

rapid growth of urban course.. Drop in water levels and drying centers. * Adverse effects on riverine

up of waterways. aquatic life and lake. Expansion of farm lands and ecosystems.

* Increased urban development inadequate agriculturaland construction and industrial practices near river banksactivities near river banks; poorly and shores, includingplanned tourism centers. overgrazing.

* Land subsistence; relief andmorphological structure ofsoil.

* Climatic variability andconditions; seasonal floodsand intermittent increase inlake levels.

Table 7.2

Mining: For instance, Mara, Mwanza, parts of Shinyanga, and Kagera regions

Immediate Causes Root Causes Impacts Severity

. Use of toxic chemicals and lack . Inadequate policy guidance, . Water and air pollution. HIGH inof containment and treatment lack of or insufficient certainfacilities (esp. mercury use in safeguards (EIA, anti- * Soil degradation and locationsgold mining). pollution/environmental erosion of sites and

legislation. adjacent river banks;. Lack of adequate site deforestation and

rehabilitation. * No regulation/enforcement of landslides leading to riverprivate mining siltation.

. Inadequate mining practices. entrepreneurs.* Adverse impact on flora

* High demand for construction . Lack of (government) and fauna.materials and indiscriminate planning and oversightclearing of vegetation.

Table 7.3

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Water Contamination: Pollution. Point source pollution localized around urban/growth centers. Non point sources generally are a

regional problem mostly from agricultural sources.

Immediate Causes Root Causes Impacts Severity

. Discharge of run-off of untreated . Weak policies, laws and * Degradation of water MODERATEwater from urban and industrial regulations for environmental quality, renderingsources containing dissolved protections (e.g. EIA); insufficient water unsuitable fornutrients, industrial pollutants, enforcement and monitoring domestic, agricultural,agricultural chemicals/fertilizers; lack especially in respect to industrial industrial and otherof recycling of waste matter; facilities; low budgetary provision uses.uncontrolled dumping of waste. for enforcement of existing

regulations, lack of sufficient * Adverse impacts on. Non-point source pollution from human resources. water dependent flora

agriculture due to improper and high and fauna, loss ofapplication rates of agro-chemicals. * Point Sources: Inadequate habitats and bio-

funding of investments, high diversity, nutrient. Degradation of vegetative cover capital costs, high operation and discharges leading to

especially wetlands, in basins which maintenance costs, inadequate increasedcould act as filters. containment and treatment of eutrophication. .

wastes and lack of sanitaryfacilities. . Pollution of lakes and

tributaries, resulting in. Non-point sources: Unsustainable contamination of

land use practices in combination drinking water.with lack of security of landtenure. * Lack of adequate

liquid and solid waste. Inadequate zoning regulations disposal systems and

and/or enforcement; inadequate accumulation ofenvironmental and land use refuse.planning.

. Decrease in* Low environmental awareness environmental quality,

and sense of value or disappearance ofenvironmental protection. natural habitats and

proliferation of waterhyacinth.

Table 7.4

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Deforestation:

Immediate Causes Root Causes Impacts Severity

* Land use conversion due to . Poverty and population * Decreasing HIGHincreasing need for arable land pressure leading to vegetation/forest cover;and grazing areas; burning unsustainable pressure on loss of density andpractices for land clearing and resources; absence of diversity.shifting cultivation. alternative livelihoods and

weak capacity to increase * Deterioration of watershed:. Uncontrolled logging for fuelwood unit agricultural production. high run-off associated with

and charcoal production for increased erosion leadingdomestic/household energy . Insufficient energy to loss of fertile soils andconsumption, construction alternatives to fuelwood. sedimentation and siltationmaterial and local industry fuel downstream.needs. * Insufficient awareness and

knowledge of sustainable * Energy crisis associated. Unsustainable and inefficient land use practices and with price increases due to

resource use (e.g. overgrazing, effects of deforestation. decreased availability ofextensive cultivation on steep hill fuelwood and charcoal.slopes and uncontrolled logging). * Land tenure system leading

to allocation and use of . Large scale habitat. Lack of local planting/replanting. marginal lands and lack of destruction and loss of

incentives for sustainable wildlife in terms of numbers. Human migration and land use practices. and biodiversity;

resettlement due to increasing progressive disappearancenumbers of returnees and other * Drought and overall arid of National Parks.war affected groups, encroaching climate and topography.into forested areas. * Variability in climate and

rainfall patterns.

|Table 7.5

Water Contamination: Sanitation Aspects

* Lack of water supply systems . Lack of environmental * Pollution of drinking SEVEREand/or other reliable drinking regulations and laws, monitoring water sources (groundwater source; drinking water and enforcement and general and surface water) andcontamination with fecal matter waste management strategies. high dissolved nutrientleading to spread of pathogens. loads resulting in

Rapid growth of urban centers increasing. Lack of or insufficient sewerage and lack of financial resource eutrophication and

or alternative sanitation systems; base to build needed water spread of infectiousleaks and insufficient supply and sanitation diseases ( diarrhea,maintenance of existing facilities; infrastructure combined with malaria, bilharzias,lack of urban storm water sewers lack of planning for urban dysentery, and intestinaland solid waste disposal facilities. expansion and required worms).

infrastructure.* Insufficient sanitation and hygiene . Risks to public health

training in conjunction with . High capital costs for due to poor sanitationwidespread poor sanitary investments; high operation and conditions, especiallyconditions. maintenance costs. during rainy season and

floods.. Increased breeding ground for * Previous low priority given to

mosquitoes in water weed sanitation by government and . Increased absence frominfested areas and irrigation agencies, lack of awareness of work due to sickness;canals. connection between sanitation increase in malnutrition

and safe drinking water; need and death ratesfor better hygiene education, especially among

vulnerable groups such* Poverty and poor health as small children, the

condition of large parts of the displaced and thepopulation. elderly.

Table 7.646

Loss of Biodiversity and Habitats.

Immediate Causes Root Causes Impacts Severity

Species loss and decline of ecosystems . Population pressure and poverty Species loss and decline of SEVERE

and unique habitats. combined with high reliance on ecosystems and uniqueprimary natural resources and habitats.

. Poaching and illegal trade in valuable income from agriculture.species as well as intensive and . Disappearance of

unsustainable resource use and land * Low financial and staff capacity in unique animal and

management, such as deforestation, management of protected areas plant species,

wetlands conversion, expansion of and associated lack of control especially endemic

agriculture (crops and livestock and monitoring; poor enforcement ones; decline of

farming, overfishing, uncontrolled of laws protecting gazetted species diversity.

burning and forest fires). forests and game sanctuaries;lack of financial resources for * Decrease in numbers

. Lack of alternative income sources development and implementation of large mammals with

especially in areas or resettlement. of effective and relevant negative impact onprograms. tourism and

Loss of agrodiversity. associated decrease. Weak agricultural extension in revenue.

. Expansion of hybrid/high yielding crop services.and livestock varieties leading to * Decrease in forest

decrease of genetic diversity of . Lack of awareness of biodiversity cover constituting

domestic/national species. concerns and benefits from decrease in food, fuelconservation. timber and shelter.

* Introduction of exotic species.* Lack of regulations to prevent Loss of agrodiversity.

introduction of exotic species.. Loss of genetic base

* Inadequate and unregulated land (cattle breeds, crops,use practices; insufficient vegetables/fruits); lossintegrated programs for people of benefits from localliving in protected areas. variety qualities

(tolerance productivity,resilience);dependency on exoticseeds andbreeds/importedvarieties.

Wetlands Degradation; e.g. Simiyu River, Lake Victoria Shores, banks of Kagera River/swamps

* Reclamation of wetlands to expand . Lack of wetland protection and . Decrease and SEVERE

agricultural production. management regulations and degradation of wetlandmeasures and/or lack of areas ( reclamation,

* Deforestation, erosion and implementation. siltation, flood

sedimentation. damage; water weed

* Poverty and population infestation)

. Overuse of natural resources pressures; shortage of land;(overfishing/hunting/over- inadequate land use policies . Decreased benefits

grazing,farming practices) from functioning* Lack of awareness of wetlands wetlands, e.g. less

. Pollution from industrial, agricultural function and value, cultural groundwater re-charge

and domestic sources. habits. decreased buffering offloods, loss of filterfunction to absorb anddegrade pollutantsand associateddecrease in waterquality; decreasingability to act assediment trap;destruction of habitatsand loss ofbiodiversity.

Table 7.747

7.1.2 Positive Environmental Impacts of the TEDAP off-grid component

Overall, the TEDAP is likely to have a positive impact on the environment in Tanzania, inthe short, medium and long term, for the following reasons;

* The implementation of this ESMF will increase in Tanzania the practice ofsubjecting development projects (especially energy and power projects) to anenvironmental management process, in the prevailing situation where a nationalenvironmental policy and regulatory framework are weakly enforced. The ESMFoffers the opportunity to identify potential project impacts, mitigate them verifiablythrough monitoring while building capacity for environmental management withininstitutions, local governments and private operators.

* The ERT will alleviate some of the root causes of Deforestation in Tanzania inthose areas where rural electrification succeeds, by reducing the demand forfuelwood and charcoal as the main source of energy. Therefore this will have acumulative positive impact on conservation of forest ecosystems and theirservice as a natural habitat.

* The ERT offers opportunities for development and exploitation of renewablesources of energy, limiting C02 and local pollutants. The project will facilitateadditional funding for reduced greenhouse gas emissions through carbon financefacilities, such as Prototype Carbon Fund (PCF).

7.1.3 Potential Adverse Environmental Impacts from the TEDAP off-gridcomponent

* Poor planning resulting in poor choice of location of power systems andinfrastructure, that ultimately lead to land degradation and soil erosion, water(surface and ground) contamination, degradation/loss of natural habitats andwetland ecosystems. For hydro power, the size of the reservoir is more of anissue, especially if there is no compatibility with other use of water such asirrigation or its impact on agriculture.

* During construction - poor performance of civil works contractors (and theirsupervisors) leading to unsuccessful implementation of the required mitigationmeasures.

* Poor implementation of maintenance plan during operational phases of theinfrastructure and generation facilities if the private operators, maybe due to lackof funds, negligence of staff or failure in the monitoring this stage.

* Impacts of Greenhouse Gas Emissions - because of the potential impacts ofclimate change, it is import to assess greenhouse gas emissions of energysystems of any option/bid considered. CO2 and CH4 are considered the mostimportant gases contributing to the greenhouse effect. The project will howeversupport primarily RET solutions, therefore the overall effect on GHG emissions isexpected to be positive.

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7.2 Potential Social Concerns and Impacts

The main social issues in Tanzania today are:

Acute Poverty - poverty is wide spread in Tanzania. Despite its potential and richresource endowment, Tanzania is one of the poorest countries in the world with a percapita GNI of about US$350 in 2005. Official estimates suggest that over half ofTanzania's 36million population lives below the international "dollar a day" poverty line,36% is very poor. Poverty is essentially a rural phenomenon, with almost 61% of therural population is poor compared to 39% of the urban population.

The Tragedy of HIV/AIDS -HIV/AIDS affects both education coverage and quality. Itdampens the demand for education as affected households have fewer resources tospend on education either because of reduced income due to morbidity of incomeearners or diversion of scarce resources for health care. Children in these householdsare often taken out of school to care for ill parents or have to work to make up for losthousehold income, and an increasing number are becoming orphans. At the same time,the epidemic affects the supply of educational services at all levels through increasedmortality, morbidity and absenteeism among teachers and education personnel.

The lack of access to modern energy services. Tanzania's low electricity accessrates are serious constraints in rural areas. . Biomass, particularly wood-fuel,constitutes 95% of rural energy consumption, contributing to environmental degradation.Despite healthy real economic growth (above 5% p.a. since 2001), low inflation andadequate foreign exchange reserves, access rates remain low for electricity -- less than10% of the overall population and only about 1% of the rural population have access tothese services. These low rates are a major constraint to higher rural non-farm incomesand an improved quality of life that can be gained not just from improved householdlighting and communications, but also from improved service delivery in rural health,education and water facilities.

Gender Issues - Women are often poorer than men, own less land and livestock, havefewer years of schooling and have the responsibility of sourcing and providing thehousehold energy. Therefore, on the demand side, especially in rural areas, there isneed to relieve women from the burden of searching for energy, especially fire wood.Whereas, the contrary is true on the commercial energy supply side, where it is clearthat women are under-represented at all levels of energy generation, transmission anddistribution. Gender imbalances are rooted and sustained by traditional and culturalvalues. In 1990, the Government established the Ministry of Women Affairs and Childrenwith a view to promote gender equality. A gender committee has been created to ensurethat sectoral investments respond to the priority needs of both men and women. Thenew land legislation has represented an encouraging step towards securing the right ofwomen to own, dispose of and inherit land7. Additionally, all stakeholders within theenergy sector need to participate and take deliberate sensitization actions to encouragewomen participation in energy related education, training, programs and projects,planning, decision-making and, not least, energy policy implementation. Thegovernment's national energy policy states;

7 See the Resettlement Policy Framework for this project for more information on land regulation.

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I. To promote gender equality within the energy sub-sectors both on the demandand supply.

II. To facilitate education and training for women in all energy aspects.Ill. To promote awareness on gender issues concerning men and women's social

roles in the energy sector, including training on appropriate technologies.IV. To promote awareness and advocacy on gender issues in the energy sector.

7.2.1 Positive Social Impacts from the TEDAP off-grid component.

Overall, the TEDAP off-grid component is likely to have a positive socio-economicimpact in Tanzania, in the short, medium and long term, for the following reasons;

* The TEDAP off-grid component will address the following two main issues;(a) Low access to reliable and clean energy services in rural areas.(b) Access to energy services for public (cross-sectoral) facilities in health

education and agriculture.

* Increased quality from public services due to availability of access to energyservices from education, health and agriculture services.

* Implementation of Resettlement Policy Framework which has been prepared anddisclosed.

7.2.2 Potential Adverse Social Impacts from the TEDAP off-grid component

The risks include:* No participatory process involving local communities in the choice of location of

facilities or areas to be served.

* Exclusion of vulnerable groups from participating in and benefiting from projectactivities, i.e., from barriers to access due to stigmatization, harmful culturalpractices, acute poverty among vulnerable groups, discrimination, lack ofparticipation in the planning process etc.

* Land acquisitions/use resulting in involuntary resettlement from impacts onpeople, land, property, including access to natural and other economicresources.

The environmental and social screening form and checklist are specifically designed toensure that adverse social impacts from TEDAP off-grid activities are identified andcaptured in the planning stages and there-in effectively mitigated. Both environmentaland social mitigation measures would be verifiable monitored during the various stagesof the program cycle.

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8.0. Institutional Arrangements and Framework for Environmental and

Social Management for the TEDAP

8.1 Institutional Roles and Responsibilities

The main institutions with key responsibilities for environmental and social managementare:

8.1.1 The Ministry of Energy and Minerals and Rural Energy Agency

As this is a program, there will be no PIU, per se. Coordination and oversight of the off-grid component of TEDAP will be initially the responsibility of the Commissioner forEnergy, at the Ministry of Energy and Minerals, and subsequently transferred to theRural Energy Agency (REA) once adequate capacity in REA is established, satisfactoryto the Bank, including its Environmental and Social Unit. REA staff is currently beingrecruited and Sida project is being prepared to build REA capacity. Sample capacitybuilding strategy for REA's Environmental and Social Unit are included in Annex J.

8.1.2 The National Environment Management Council (NEMC)

As the TEDAP has an EA Category B rating, the underlying assumption is that once thisESMF is reviewed by NEMC and approved by mandated Government institution, theexecution of the processes contained in this ESMF will be reviewed, cleared andmonitored by the NEMC, MEM and the Districts. The Vice President's office does nothave the capacity to clear the sub project ESIA's or ESMP's of potential operators whowould be the sub project implementers.

Similarly, the NEMC which is also centrally located in Dar es Salaam and has nodecentralized structure will have insufficient capacity to carry out on the groundmonitoring of implementation of the mitigation measures and other activities of theprivate operators. Therefore, regular and intrusive monitoring would have to be carriedout at the district level, and NEMC will provide oversight to this process. The NEMCwould also provide periodic/oversight monitoring to ensure no adverse cumulativeimpacts from the activities of the operators at the national level and will provide oversightand technical assistance to the districts when required.

Therefore, NEMC will perform three critically important and significant roles as follows;(i) Review, Clearance and Approval of the operators ESIA/process for Category A

and B sub projects.(ii) Training of District Staff to carry out monitoring.(iii) Monitoring Oversight.

Thereby providing (i) on the ground ESMF performance reviews/audits both forenforcement purposes, but more importantly to reinforce the training and to keep theoperators and the District Environmental Coordinators cognizant of their ESMFresponsibilities, (ii) training and (iii) periodic/oversight monitoring. With regards training,the NEMC will train District Environmental Coordinators according to the TrainingProgram contained in section 8.2.1 of this report, thereby providing capacity for theDistricts to fill this position with suitably trained personnel.

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The NEMC will also be responsible for carrying out the following; (i) ensuring theoperators comply with Tanzania's environmental laws and requirements, and that of theWorld Bank's triggered Safeguard Policies, (ii) for receiving, reviewing and commentingon, requiring revisions where necessary and clearing8 of operators completed ESIA's forcategory A and B sub projects prior to issuance of the license from the regulator andfinancing from the fund, (iii) reviewing and compiling monitoring reports of the DistrictCoordinators, (iv) issue directives based on monitoring and evaluation reports, to theoperators and the District Environmental Coordinators, undertake, in cooperation withother Ministries' programmes intended to enhance environmental education and publicawareness, .

8.1.3 The Districts

The Districts would be responsible for, (i) receiving, reviewing and commenting,requiring revisions where necessary for category C type sub projects, environmental andsocial management plan (ESMP), prior to issuance of the license from the regulator andfinancing from the fund, (ii) to carry out a regular and intrusive monitoring regime duringplanning, implementation, construction, operations and maintenance stages of theoperators sub project (iii) for preparing periodic monitoring reports on the operatorsactivities at all stages of the operations and to send these reports on a regular basis tothe NEMC for compiling and monitoring of cumulative impacts across Tanzania, (iv) tocomply with ( consistent with national laws) the directives of the NEMC and the MEMand (v) to issue directives to the sub project operators consistent with national laws onenvironmental requirements.

8.1.4 Sub Project Operators

The sub project operators will be responsible ; (i) for complying with all national lawsregarding the environment and with all social/poverty guidelines, parameters and targetsset by the GoT, and of all triggered World Bank Safeguards policies, (ii) to implementtheir program activities according to and consistent with the provisions of this ESMF,implementing, inter alia, all appropriate mitigation measures identified in their completedESIA and/or environmental and social management plan (ESMP) into the constructionplanning cycle, technical and engineering designs and drawings, and civil workscontracts, etc. (iv) to ensure that these mitigation measures are complied with duringconstruction and post construction (i.e. operations ) stages of their activities, by selfmonitoring of their activities and by periodically reporting to their respective DistrictEnvironmental Coordinator and , (v) to maintain an adequate budget to implement theappropriate maintenance procedures and practices for their operations , to ensurerelevant mitigation measures identified in the ESIA and/or environmental and socialmanagement plan (ESMP) are implemented and sustained in their operations and (vi) tocomply with any directives that may be issued from time to time from the MEM, NEMCand the Districts.

8.1.5 The Regulator

Electricity and Water Utility Regulatory Authority (EWURA) will be responsible, interalia for regulating the rural electricity sub sector and will issue licenses to the approved

aTo aid this process, Annex G contains and Environmental and Social Appraisal Form for use bythe NEMC and the District Environmental Coordinator.

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operators. With specific regards to this ESMF, EWURA will only issue licenses afteroperators have received environmental and social clearances from NEMC and/or theDistrict Environmental Coordinators.

8.1.6 The Rural Energy Fund

Rural Energy Fund (REF) would be managed by the Rural Energy Agency (REA) andwould allocate one-off partial capital subsidies on a transparent and competitive basis forrural electrification sub projects. These capital subsidies will be disbursed to theoperators whose bids have been successful and only after they have been issued thelicenses from their respective regulator.

8.1.7 Capacity Assessments

As more development assistance pours into Tanzania, the country's technical capacityfor effective environmental management is being addressed. In February 2005, a newlaw known as the Environment Management Act, 2004 was signed into law, as theumbrella law governing the management of the environment in Tanzania.

Also, other ongoing and planned Bank financed operations such as the SecondaryEducation Development Program (SEDP), the Agricultural Sector Development Program(ASDP) , Tanzania Social Action Fund (TASAF) and the Participatory AgriculturalDevelopment Project (PADEP), will all be implementing sub project type activities at theDistrict level and will be providing some form of training to District staff onenvironmentally similar issues, and hence the synergies and complimentarity of theseongoing efforts will build enormous capacity at the district level which will support theTEDAP.

On the other hand, potential operators are expected to clearly have the capacity to carryout the environmental and social management requirements in this ESMF either fromtheir own staff or through the use of private consultants.

The District Councils have the post for a District Environmental Coordinator, but many ofthese positions are not filled. The District Environmental Coordinators where they existwill review, clear, approves (for Category C sub projects) and monitor sub projectimplementation, as per section 8.1.4 above. The Districts will also be assisted by serviceproviders in situations where there is no in-house capacity to perform these roles orwhen the District Environmental Coordinator of their District is unavailable or not in post.

Initial capacity building will be also needed for the new REA Environmental and SocialUnit. This will be primarily undertaken under Sida capacity building project for REA, butUS$50,000 are also allocated in this project for that purpose. See Annex J - REAcapacity building strategy.

The NEMC will have access to funds under this program to cover their additional costsrequired to carryout their responsibilities identified in Section 8.1.2 above, either forexpenses or cost of local consultants.

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The costs for this are accounted for in Table 11.1 or elsewhere in overall programbudget.

54

A

National Environment I 'Management Council

(NEMC) J

MEMIREAA (EWURA for regulation)

DistrictAEnvironmental

Coordinator

( Privte RE Opertr

Fig 8.1: Flow Chart of Institutional Roles and Responsibilities.

Monitoring Reporting

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8.2 Training Needs

Training will be provided to REA, District authorities and operators. REA capacitybuilding strategy is included in the Annex J.

8.2.1 Proposed Training Program

Duration

Environmental and Social Management process 5 days

* NEMC's EIA Training Manual 2004 for Districts including social issues such asHIV/Aids, Poverty alleviation, cultural values and their linkages with environmentalgovernance.

* Review of Environmental and Social Management Process.* Review of Standard Operator design packages.* Review of Annexes and Section 9. in this ESMF.* How to prepare ESIA's and ESMP's.* How to measure cumulative adverse impacts.* Design of appropriate mitigation measures.* How to review and clear the operators RE sub packages.* The importance of public consultations in the EA process.* How to monitor mitigation measures.* How to embed the Environmental and Social Management process into the civil works

contract.

Environmental and Social policies, procedures and guidelines 3 days

* Review and discussion of Tanzania's national environmental policies, procedures, andlegislation.

* Review and discussion of the Bank's safeguards policies.* Strategies for consultation, participation and social inclusion.

Selected topics on environmental protection 1 day

* Land use, land degradation and soil erosion in the local community area.* Preparation of Dam Safety Reports.* Safe management of waste disposal and implications on public health.* Environmental protection of Water resources.* Disaster Preparedness for floods and Droughts.

The district training will use the already successfully tested NEMC's EIA Training Manualfor Districts of 2004, which includes not only environmental impact assessment issuesbut also social issues, such as HIV/AIDS, Poverty Alleviation, Cultural Values etc. andtheir linkage with environmental governance.

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Training Cost Estimates

The Training program is to be implemented by the National Environment ManagementCouncil (NEMC). The costs estimates are based on the assumption that the trainingprogram for the District Environmental Coordinators and potential service providers willbe held at the regional or district levels; resource persons are likely to come from otherparts of the country and therefore will require travel allowances; participants will comefrom the District staff and staff of potential operators and attend during the day only butwill receive a per diem. These estimates include an allowance for travel expenses andall costs of the consultants. It is proposed that the training program for the DistrictEnvironmental Coordinator will be implemented four times a year, at least once in eachquarter in each Region over the first two years of the program cycle.

The Total Training Budget is estimated at US$400,000.

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9.0 Environmental and Social Planning, Review and Clearing Process for theRural Electrification Packages under the TEDAP off-grid component

This section describes the environmental and social management process that will formpart of the bidding requirements and processes that interested operators would have tocomply with. Compliance with this environmental and social management process willconstitute part of the evaluation methodology for bids/tenders from potential operatorsleading to award of a license to operate their sub project package. These processesincorporate guidelines from both the National Environment Management Council(NEMC) of Tanzania and the World Bank's OP 4.01.

a) The FIRST step in the process begins with the preparation of the bid/tender packagethat potential operators will have to submit.

b) The first step is for the potential operator to assign an Environmental Category for hissub project type, using table 9.1 below.

c) The potential operators will be assisted throughout this process by their team ofengineers (consultants)/service providers.

The guidelines in this ESMF are specific to small-scale non-renewable and renewableenergy sub projects to provide services in rural areas. The categorization in Table 9.1 isbased on the extent of the potential impacts and not the generic "sub-project type",which in turn determines the extent of the environmental assessment required for it.Depending upon the nature of the sub project, its extent, and the extent of the potentialimpacts, the Category, and hence the level of rigor for environmental analysis, isdetermined. Table 9.1 provides a list of sub project types that may be considered bypotential operators for funding program under the TEDAP.

Table 9.1: Rural Electrification Sub Project Types, Major Environmental andSocial Concerns and Probable Category

Project Type* Potential Major Environmental and Sub Project+Social Concerns Environmental

CategoryA. Renewable

Sources/Energy for RuralElectrification

Waste Sugar Conversion Waste disposal, pollution control, safety B

Biomass Energy Air emissions; loss of soil fertility and soil Borganic matter

Methane Capture/Conversion Waste Disposal/Safety BBiogas Production Loss of soil fertility BWind Power Aesthetics; noise pollution BMini - Hydro Power Loss of natural habitat; resettlement A] B**Decentralized Solar PV Recycling of batteries and parts BEnergy

B. Non Renewable Resettlement; loss of natural habitat; BSources/Energy for Rural aesthetics

Electrification

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Thermal Generation Plants Emission of GHG, Air, land and water Bpollution, noise

Transmission and Resettlement; loss of natural habitat; A/Bdistribution

* Resettlement is also likely to be a factor for most sub project types involving land acquisition or restrictionfor new Transmission and Distribution Grids or extension of grids.** Although most mini-hydro sub projects are expected to be run-of-river and fall within a Category B, it ispossible that some may require water storage. This could include the impoundment of large relatively flatareas. As such, these areas could remove land from cultivation and possibly result in involuntaryresettlement. In such cases, the sub project would fall into a Category A.+ The TEDAP Category is B for the program as a whole. Not to be confused with sub project category.

d) The SECOND step is to determine which of the World Bank's safeguards policies maybe triggered by the sub-project and what the requirements are to comply with thetriggered policy.

e) This requires the potential operator to use the Safeguards Tables in Annex A. Furtherinformation on these policies is available on the Bank's website, www.worldbank.orq.

f) The assumption is that the Environment Assessment OP 4.01 is already triggered andhence the need for compliance with this ESMF. OP 4.01 is included in Annex A toprovide additional guidance and information to the potential operators. Therefore,potential operators' compliance with this ESMF process is deemed to be accepted ascompliance with OP 4.01.

The following Safeguards Policies are not included in Annex A, because they are notlikely to apply for the reasons noted in brackets next to the OP.;

1. Pest Management (OP 4.09) (mostly for agriculture projects using inputs)2. Indigenous Peoples (OD 4.20) (no recognized indigenous people in URT)3. Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60) (no disputed borders withneighbors of Tanzania).4. Projects on International Waters (OP 7.50, BP 7.50, and GP 7.50) (To be addressedat the national level by the government of the URT and not by sub project operators.)

g) However, Annex A contains information to help the potential operators determinewhich of the following Bank safeguard policies may be triggered by their sub project;

1. Environmental Assessment (OP4.01, BP 4.01, and GP 4.01) (Always Applies)2. Natural Habitats (OP 4.04, BP 4.04, GP 4.04)3. Forestry (OP 4.36, GP 4.36)4. Cultural Property (OPN 11.03)5. Involuntary Resettlement (OP/BP 4.12)6. Safety of Dams (OP 4.37, BP 4.37)

h) If any of the Bank safeguards policies are triggered by sub project, the operator willmodify the design, implementation, operation, maintenance and decommissioningphases to ensure that the sub project satisfies the requirements of that particular policy.

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i) The THIRD step is for the operator to prepare a comprehensive sub projectEnvironmental and Social Impact Assessment (ESIA) including an environmental andsocial management plan (ESMP) (see Annex C for guidelines on how to prepare anESMP). Additionally, for situations where OP 4.12 apply, the Operator will prepare aResettlement Action Plan (RAP) consistent with the separately disclosed RPF. Forsituations where OP4.37 apply, the operator will prepare a Dam Safety MeasuresReport. Annex H has specific guidelines for the assessment and preparation of the DamSafety Measures Report.

j) Annex B contains an example of comprehensive terms of reference (TORs) for theESIA.

k) For Category C sub projects the operator is only required to prepare an Environmentaland Social Management Plan (ESMP).

L) Annex C contains guidelines for the preparation of an ESMP for Category C subprojects and what the ESMP in Category A or B sub project ESIAs should also contain.

m) According to Tanzanian Law and World Bank OP4.01, Public Consultation is requiredas part of the ESIA and/or ESMP process.

n) Annex F has a generic guide to an acceptable public involvement process.

o) Step FOUR: Following compliance with these steps the operators submit their ESIAand or ESMP as part of their complete bid/tender package to the required authority asspecified in the specific requests for bids/tenders.

p) The ESIA for Category A and B sub projects will be reviewed and cleared by theNEMC.

q) The ESMP for Category C sub projects is to be reviewed and cleared by therespective District Environmental Coordinators.

r) Annex G contains a generic Environmental and Social Appraisal Form to be used byNEMC and the District Environmental Coordinators, to provide guidance to their reviewprocess and to notify the approving body of the operators tender of their decision beforefinal award and funding is made.

s) The first set of cleared ESIA's for Category A and B sub projects would also have tobe reviewed and cleared by the World Bank, to ensure compliance with its safeguardspolicies. The World Bank reserves the right to not allow funds under the TEDAP off-gridcomponent be applied to sub projects that do not meet the requirements of itssafeguards policies.

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10.0 Monitoring Plan

The objective for monitoring is two fold.

1) to alert project authorities and to provide timely information about the effectiveness ofthe Environmental and Social Management process outlined in the ESMF in such amanner that changes can be made as required to ensure continuous improvement to theprocess.

2) to make a final evaluation in order to determine whether the mitigation measuresdesigned into the operators sub project/activities have been successful in such a waythat the pre- program (pre-TEDAP) environmental and social condition has beenrestored, improved upon or worst than before and to determine what further mitigationmeasures may be required.

A number of indicators would be used in order to determine the status of affected peopleand their environment (land being used compared to before, how many ruralplaces/areas/communities have access to electricity compared to before, aremarginalized groups being included etc). Therefore, the programs Environmental andSocial Management process will set two major socio-economic goals by which toevaluate its success:

* Has the pre-project environmental state of natural resources, bio-diversity andflora and fauna, been maintained or improved upon at the sub project sites, and

* The effectiveness of the ESMF technical assistance, review, approval andmonitoring process.

In order to assess whether these goals are met, the Districts and NEMC will indicateparameters to be monitored, institute monitoring milestones and provide resources9necessary to carry out the monitoring activities.

The following are some pertinent parameters and verifiable indicators to be used tomeasure the ESMF process, mitigation plans and performance;

* Number of District Environmental Coordinators who have successfully receivedESMF training .

* Number of sub project ESIA's/ESMP's cleared and approved and number notapproved or referred for additional work.

* Number of sub projects implementing ESMP's during construction and post-construction.

* Percentage number of impacts successfully mitigated in sample number of subprojects using measures contained in approved ESIA/ESMP, at certain periodicintervals in the sub projects life.

* Efficiency of operators maintenance and operating performance.* How many RAPS have been fully executed before PAPS are physically

displaced.* How many recorded grievances cases have been settled within one year?

9 These resources would be provided under the ERTP budget and are indicated in Table 11.1

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* For sub projects involving Dams, Number of Dams implementing Dam SafetyMeasures during construction and lyr, 2yr 3yr, 4yr after construction.

* Out of the number of poor and vulnerable areas identified in each District in theSocial Assessment Studies/Rural Electrification Master Plan, how many of themare;(i) targeted for provision of electricity? ii) at what rate are they beingprovided? and (iii) how many have benefited from this TEDAP?

* What techniques are the District's/Operators employing to ensure vulnerablegroups are consulted and are benefiting from project activities? Are thesetechniques working?

* At what frequency and rate are the Districts monitoring the activities of theoperators at all stages of operations?

* How many Districts are up to date with their periodic monitoring reports?* Is NEMC receiving the periodic monitoring reports of the Districts and what are

the main concerns of the NEMC at this stage?* Is the NEMC compiling the periodic reports of the Districts and is it forwarding it

to the MEM?

Other indicators can be developed based on the results of the socialassessment/participatory consultation.

10.1 Monitoring Roles and Responsibilities10 (refer to Fig. 8.1)

10.1.1 Rural Electrification Service Providers and Operators (the operators):

It is planned that the environmental and social impacts and their designed mitigationmeasures are to be monitored during implementation (construction/rehabilitation works)and operation (including maintenance) stages of the sub projects by the operators,themselves. No assignment of monitoring responsibilities to other parties will absolvewhatsoever, the operators of their responsibility to successfully manage, mitigate ormonitor any adverse impacts caused by their sub project. The main roles andresponsibilities of the operators for monitoring impacts of their sub projects and theircorresponding mitigation measures will be as follows; the operators assisted by theirservice providers/consultants/experts, will monitor the environmental and social impactsand mitigation measures of their own sub project activities as contained in their clearedand approved ESIA/ESMP and all other documents in their individual application1". Theoperator's will monitor and evaluate the environmental and social impacts of their subproject and the mitigation measures designed, regularly and as frequently as specified intheir application and will maintain suitable records to be made available to theirrespective District, NEMC and the MEM. The operator's will monitor the impacts andmitigation measures during all phases of their sub project execution cycle, i.e., fromplanning stage to construction, operations and maintenance stages. The operators willalso be responsible for monitoring the environmental and social impacts and mitigationmeasures resulting from the action of their contractors, sub contractors, transporters,suppliers and all other third parties in the course of their duties. Further, the operatorswould also be responsible for monitoring the environmental and social impacts andmitigation measures of their sub project activities at other locations beyond their sub

10 Capacity building needs to achieve and sustain this have been addressed in Section 811 Application refers to the complete set of operators bid/tender documents including thecompleted ESIA, ESMP, technical designs, drawings, civil works contracts, etc.

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project sites, at end user locations such as in rights of way, servitudes etc. and onnearby wetlands, game parks etc.

Therefore, wherever environmental and social impacts are or can be attributed to theirsub project activities the appropriate mitigation measures will apply consistent with thisESMF and their ESIA and/or ESMP, and the operators would be responsible formonitoring and evaluating the same. The operators will prepare and submit periodicmonitoring reports to their respective Districts and NEMC.

10.1.2 Districts (Environmental Coordinator):

The Districts will play the leading role of monitoring the activities of the operator'sin their District. The District will carry out this role by ensuring that the operatorsenvironmental and social management plan (ESMP) contained in the clearedsub project application/design package is being implemented as specifiedtherein. That is to say that the Districts will monitor the operators monitoringprocedures and reports on a regular basis, perhaps quarterly. They will rely on abottom up feed back system to them from the operators by going through theirmonitoring reports and making regular site visits to inspect and verify forthemselves the nature and extent of the impacts and the success or lack off, ofthe mitigation measures.

The Districts will prepare consolidated periodic monitoring reports for submission to theNEMC. The Districts will need equipment and transportation to carryout their taskeffectively and this will be provided by the TEDAP and is budgeted for in Section 11.0 ofthis ESMF.

10.1.3 The National Environment Management Council (NEMC):

The NEMC will do on the ground ESMF performance reviews/audits both forenforcement purposes and to reinforce the training and to keep the operatorsand the District Environmental Coordinators cognizant of their responsibilities.The NEMC's will carry out this role by reviewing in each District; (i) the ESIA forCategory A and B sub projects and the ESMP for Category C sub projectssubmitted to their District Environmental Coordinator, (ii) the appraisal formcompleted by the District Environmental Coordinators and the clearance decisioncontained therein (iii) a visit to the sub project site during construction to ensureconstruction activities are going on as per ESMP and civil works contract andafter construction completion to ensure sub project is being implemented and isoperational as designed.

In addition to the ground environmental reviews and implementing the training program,the role of the NEMC will be monitoring as detailed in Section 8.0. They will perform thisrole by reviewing periodic reports from the Districts, prepare consolidated periodicmonitoring reports and make spot/unannounced site inspections at the District level andat sub project site locations. The NEMC will report its findings to the MEM and theDistricts.

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10.1.4 The Ministry of Energy and Minerals (MEM):

The MEM will monitor the activities of the Districts and the roles of the NEMC byreviewing the consolidated periodic monitoring reports of the NEMC and by conductingperiodic technical audits of the operators and their sub projects.

In conclusion therefore, the system for monitoring functions on a bottom up approach, onthe one hand, in terms of placing monitoring responsibilities on the operators and localcommunities who are then supervised and monitored by their District who in turn areaccountable to the MEM and the NEMC. On the other hand, this system is madefunctional by the transfer of appropriate technology, capacity building through training(mostly through learning by doing) and technical assistance and, budget support in thetop down direction. This system for monitoring is thus strengthened and sustainable andshould yield successful results overall.

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Table 10.1: Environmental Mitigation Plan for the TEDAP

Project Mitigation Implementing Monitoring Timing CostsActivities Measures Agencies ResponsibilityRural Environmental Operators District During IncludedElectrification and social Environmental preparation insub project Impact Operators Coordinator of Bids programpackages Assessments service

(ESIA) providers/Cons NEMC During didcontaining ultants evaluation IncludedEnvironmental MEM in sub-and Social District projectsManagement GovernmentsPlans (ESMP) NEMC

Public Operators District TBDconsultations/ Environmental Includedsensitization Coordinator in

programPrepare RAPsas necessary Operators District Before

Environmental implementat IncludedPrepare Dam Operators Coordinator ion of sub in contractSafety service assisted by projects.Measures providers/Cons NEMC.Report as ultants. Includednecessary in

program.Environmental NEMC TBDguidelines forcontractors

DistrictRegular Operators Environmental Ongoingmaintenance of Coordinatoroperators assisted byoperations. NEMC.

Prepare cultural Operators / District Before Includedproperty construction Environmental implementat in contractmeasures as companies Coordinator ion of subnecessary projects

Training of NEMC MEM TBD $4000,000(DistrictEnvironmentCoordinators/serviceproviders forNEMC)

Total Costs $810,000

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11.0 ESMF Implementation Budget

Cost for Environmental and Social Management of theTEDAP(in US$)

Training 400,000Review of ESIAs/ESMPs .... 150,000Monitoring Plan 260,000Total Costs ... 810,000

Table 11.1

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Annex A: Verification of Safeguards Policies triggered by Sub Projects.

I. Environmental Assessment (OP 4.01)Summary: The Bank requires environmental and social impact assessment (ESIA) of sub-projects proposed for Bank financing to help ensure that they are environmentally sound andsustainable. The environmental assessment is a process that is conducted to identify thenegative impacts that a project may have on aspects of the biophysical and social environment. Itanalysis the impacts of project alternatives, provides mitigation measures to be undertaken toeliminate or minimize the impacts identified. A more comprehensive description is provided inSection 5 of these guidelines.Objective: To identify potential impacts that a project may have on the environment and toprovide mitigative solutions to eliminate or minimize these impacts.

The Sub project operator automatically complies with this policy by complying with themeasures described in this ESMF. Preparation of ESIA's including ESMP's are required forCategory A and B sub projects, and only an ESMP is required for Category C sub projects.

II. Natural Habitat (OP 4.04)Summary: The conservation of natural habitats is essential for long-term sustainabledevelopment. The Bank supports, and expects sub project operators to apply, a precautionaryapproach to natural resource management to ensure opportunities for environmentallysustainable development. The Bank will not support sub projects that, in its opinion, involves thesignificant conversion or degradation of critical natural habitats.Objective: To ensure the protection, maintenance and rehabilitation of natural habitats and theirfunctions within the financed su project.

Questions: Actions:i) Will the sub project be sited If 'yes', and in the Bank's opinion that site had been a significanton lands that were converted habitat, the Bank will not support the sub project.from natural habitat inanticipation of the sub project?ii) Will the project be sited on If 'yes' and in the Bank's opinion the natural habitat is notlands that require conversion significant, the project may proceed. If 'yes', and the naturalof natural habitat? habitat is significant, proceed to question iii). If 'no', proceed

with the sub project.iii) On a site with significant If, 'yes' go to the feasible alternative. If 'no', go to question iv)natural habitat, are therefeasible alternatives for thesub project?iv) Do the overall benefits of If 'yes', the Bank may support the sub project. If thethe sub project substantially environmental and social impact assessment indicates that aoutweigh the environmental project would significantly convert or degrade natural habitats,costs? the sub project will include mitigation measures acceptable to

the Bank and these could include minimizing habitat loss,and/or establishing and maintaining an ecologically similarprotected area. Other forms of mitigation will be approved if theyare technically feasible.

If 'no', the Bank will not support the sub project.Other comments:

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i) In deciding whether to support a sub project with potential impacts on a natural habitat, theBank takes into account the operator's and the GoT's ability to implement the appropriateconservation and mitigation measures. If there are potential institutional capacity problems, thesub project and overall TEDAP includes activities that develop the capacity of national and localinstitutions for effective environmental and social planning and management.ii) The Bank expects the operator and the GoT to take into account the views, roles and rights ofinterest groups including NGOs and local communities affected by the sub project. It expects thatsuch interested parties be involved in the planning, design, implementing and evaluating of suchsub projects.

Ill. Forestry (OP 4.36)Summary: The Bank's lending operations in the forest sector are conditional on governmentcommitment to undertake sustainable management and conservation-oriented forestry. It doesnot finance commercial logging operations or the purchase of logging equipment for use inprimary tropical moist forest. Where logging is being carried out in borrowing countries the Bankseeks government's commitment to move towards the sustainable management of those forests.Objective: To reduce deforestation, enhance the environmental contribution of forested areas,promote afforestation, reduce p verty, and encourage economic development.

Questions: Actions:i) Will the sub project involve If 'yes', the Bank will not approve the sub project.the harvesting of tropical moistforest cover or the purchase ofharvesting equipment toundertake such harvesting?ii) Will the project involve the If 'yes' the Bank will require that GoT and the operator tomanagement of forests? demonstrate its commitment towards sustainable management

and conservation oriented forestry. This will include theadoption of appropriate policies and a legal and institutionalframework. It will also require the adoption of a comprehensiveand environmentally and socially sound forestry conservationand development plan identifying the roles and rights ofgovernment, the private sector and local people.

iii) Does the forest area have If 'yes', the Bank will only finance preservation and light, non-high ecological value? extractive use of forest resources.Other comments:i) The Bank requires that that GoT and operators identify and consult with local interest groupsinvolved in the forest area within which the project will occur.ii) The Bank finances plantations only on non forested areas (including previously planted areas)or on heavily degraded forest land.

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IV. Involuntary Resettlement (OP 4.12)Summary: Bank experience indicates that involuntary resettlement under development projects,if left unmitigated, often gives rise to severe economic, social and environmental risks: productionsystems are dismantled; people face impoverishment when their production assets or incomesources are lost; people are relocated to environments where their productive skills may by lessapplicable and the competition for resources greater; community institutions and social networksare weakened; kin groups are dispersed; and cultural identity, traditional authority, and thepotential for mutual help are diminished or lost. Where people are forced into resettling as a resultof a Bank project or a component of the project that may be under other financial arrangements,the Bank requires that those who are affected are treated in such a way so as way as tominimize their disruption and to compensate for their losses. The borrower will be responsible forpreparing, implementing, and monitoring a resettlement plan, a resettlement policy framework, ora process framework, as appropriate, that conforms to the policy. The GoT has prepared anddisclosed the Resettlement Policy Framework (RPF) which the operator is supposed to complywith should his sub project trigger this policy.Objective: Involuntary resettlement will be avoided where feasible, or minimized. Whereresettlement is required, resettlement activities will be conceived and executed as sustainabledevelopment programs, providing sufficient investment resources to enable the personsdisplaced by the project to share in project benefits. Displaced persons should be assisted in theirefforts to improve their livelihoods and standards of living or at least to restore them to levelsprevailing prior to the beginning of project implementation.

Questions: Actions:i) Is there any land acquisition If the answer to one or more of the questions is yes, then aresettling in loss of access, resettlement action plan (RAP) consistent with the disclosedrestriction or denial of access RPF is to be prepared by the operator. Depending upon theto that acquired land? significance of the impacts (e.g. minor or less than 200ii) Will the taking of land result resettled) an abbreviated resettlement plan would be requiredin relocation or loss of shelter? only). The plans will ensure that: i) people are informed of theiii) Will the taking of land result their options and rights pertaining to resettlement; ii) they arein a loss of assets or access to consulted and given feasible resettlement alternatives; iii) theyassets? are provided prompt and full compensation for losses incurred.iv) Will the taking of land result If physical relocation is required the plan will: i) providein the loss of income sources assistance during relocation; ii) be provided with housing,or means of livelihood? housing sites, or agricultural sites; iii) offered support after

resettlement; iv) provided with development assistance,monitored and granted access to grievance redressmechanisms.

Resettlement planning includes early screening, scoping of keyissues, the choice of resettlement instrument, and theinformation required to prepare the resettlement component. Toprepare the plan the borrower will draw upon appropriate social,technical, and legal expertise and on relevant community basedorganizations and NGOs.

Other comments:i) At the GoT's request the Bank may provide technical, legal and financial support forresettlement planning and for institutional capacity strengthening as this relates to resettlementplanning and implementation.ii) The full cost of resettlement activities to achieve the objectives of the project is included in thetotal costs of the sub project to be paid for by the operator.iii) The borrower is responsible for adequate monitoring and evaluation of the activities set forth inthe resettlement instrument (i.e RAP).

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V. Cultural Property (OP 4.11)Summary: Cultural property includes sites having archaeological (prehistoric), palaeontological,historical, religious and unique natural values. The Bank will normally decline to finance a subproject that will significantly damage non-replicable cultural property, and will assist only thosesub projects that are sited or designed so as to prevent such damage. The policy pertains to anyproject/sub project in which the Bank is involved; irrespective of the whether the Bank is itselffinancing the part of the project that may affect cultural property.Objective: To assist in the preservation, and to seek to avoid elimination of cultural property.

Questions: Actions:i) Will the sub project damage If 'yes', the operator must take appropriate action to meet theor remove cultural property? Bank requirements of cultural property protection. If the project

benefits are great and the loss or damage of the culturalproperty is judged by competent authorities to be unavoidable,minor, or otherwise acceptable, the Bank may waive the policy.

If significant damage to non-replicable cultural property is likely,the Bank will normally decline its support for the sub project.

Other comments:i) The Bank will assist in the protection and enhancement of cultural properties encountered inBank-financed projects, rather than leaving their protection to chance. In some cases, the subproject is best relocated in order that sites and structures can be preserved, studied, and restoredin situ. In other cases, structures can be relocated, preserved, studied, and restored onalternative sites, Often, scientific study, selective salvage, and museum preservation beforedestruction is all that is necessary. Such actions, including the necessary training andstrengthening of the relevant institutions (e.g. local museum specialists) should be included in thescope of the sub project.VI. Safety of Dams (OP 4.37)Summary: For the life of any dam, the owner is responsible for ensuring that appropriatemeasures are taken and sufficient resources provided for dam safety, irrespective of its fundingsources or construction status. For new dams, construction must be supervised by experiencedand competent professionals and the GoT/operator must adopt and implement certain dam safetymeasures for the design, bid tendering, construction, operation and maintenance of the dam andassociated works.Objective: To ensure that all dams designed and builtrehabilitated with, in part or whole, Bankfunding will function properly and will not fail under any circumstances.

Questions: Actions:i) What is the height of the Dams less than 15 meters in height, generic dam safetyproposed dam? measures designed by qualified engineers are usually

adequate. Dams between 10 and 15 meters in height aretreated as large dams if they present design complexities. Damsfewer than 10 meters in height are treated as large dams if theyare expected to become large dams during the operationfacility.

Construction of Large Dams will not by financed by the TEDAP.

ii) Is the dam an existing dam If yes, the operator/GoT must arrange for one or moreor one under construction? independent dam specialists to inspect and evaluate; review

and evaluate owner's 0 and M procedures; and provide writtenreport of remedial work or safety measures required to upgradeexisting dam

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Other comments:i) If substantial remedial work is required the work must be designed and supervised by trainedand competent professionals and, a panel of experts may be required in the case of high-hazarddams involving significant and complex remedial work.

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Annex B: Outline for an Environmental and Social Impact AssessmentReport

The following is a recommended outline for an ESIA that would be required for CategoryA and Category B projects. The operator of sub project for which he is requestingTEDAP funds will be required to submit such a report if the activity falls within one ofthese two categories. The rigor of the environmental analysis for a Category B report willbe significantly less than that required for a Category A report. In the outlineaccompanied by brief descriptions, the differences for addressing each of the Categoriesare provided where appropriate and necessary for clarity.

Report Category A Category BSections

Executive Stand alone document; comprehensive and Same but may beSummary summarizing all of the salient points of the ESIA; not to shorter in length

exceed 15 pagesAcknowledge Acknowledgements to all of those who were Samements instrumental in the carrying out and completion of the

ESIA.Introduction Explains the purpose of the ESIA, its structure and Same

audience; describes the WB and Tanzania's needs foran ESIA

Sub Project Describes the sub project in detail. Describes sub Same but the moreDescription project goals, objectives, beneficiaries, outcomes, value, general description

schedule, and implementing bodies of the sub projectmay be given.

Legal and Describes the main legal instrumentation for Same, but theAdministrative environmental control and management, particularly analysis may not beFramework specific instrumentation relating to the type of sub as rigorous.

project (e.g. hydro-power/dams), and the generaleffectiveness of the legal instruments. Indicatesgovernment bodies responsible for each of the relevantinstruments.Lists relevant ratified international conventions andwhere appropriate and relevant, track record of ensuringthat conventions are adhered to.Describes the institutional framework for theadministration of the relevant environmental legislationand implementation of policy, and analyzes the capacityand effectiveness of the institutions.

Alternatives Discusses the various sub project alternatives that were Sameconsidered and weighs the environmental merits ofeach. Rationalizes the selected project on variousgrounds including environmental.

Methodology Describes how the assessment was conducted Sameincluding: screening, scoping and bounding; thecomposition of the assessment team; the impact scoringsystem (if utilized) employed; the public participationprogram (refer to Annex H); sources of data andinformation; field studies conducted and other majorinputs to the assessment

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The Bio- Describes both the physical and social environment Same but will relyphysical and within which the project will take place. This will include mostly on secondarySocial the soils, fauna, flora, protected areas, other special dataEnvironment areas, biodiversity, population, ethnicity, relevant cultural

patterns and traits, employment, health and relationshipof the people to the resources, land use, anddevelopment patterns.Selected areas of the above will involve surveys toobtain primary data.

Potential12 Identifies the important potential impacts (biophysical Same, but someEnvironmental and social), the most effective mitigation to conduct, the assessmentand Social residual impacts to be expected, and the cumulative examinations mayImpacts effect to be expected. Impacts may or may not be rated not be as rigorous

on a scale of, for instance, very significant, significant,moderately significant, low significance, or nosignificance.Descriptions of those safeguard policies that may beaffected and how these will be addressed.

Environmental A detailed description of how each of the impacts will be SameManagement mitigated included cost, scheduling and the responsible13 body.

Includes a monitoring procedure with schedule, cost andresponsibilities, including monitoring feedbackmechanism.Includes a self assessment of institutional capacitybuilding needs for effective environmental managementwith a schedule and cost of various types of capacitybuilding required.

Literature A complete reference to all literature cited in the Samecited conducting of the assessment and preparation of the

ESIA report.Annexes Various volumes covering separate studies (e.g. social Same, but separate

assessment, biological studies, etc.) as well as an annex studies probably notincluding detailed descriptions of impacts and most required since mosteffective mitigation. of the data will be

I secondary.

12 Annex D contains Adverse Environmental and Social Impacts from Rural Energy Type SubProjects to be Rated H, M, or L in ESIA/EMP.13 Annex E contains Generic Mitigation Measures for adverse impacts in Annex D.

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Annex C: Guidelines for an Environmental and Social Management Plan(ESMP)

EMP Contents usually are:

* Description of adverse impacts: The anticipated impacts are identified andsummarized .

* Description of,Mitigation Measure: Each measure is described with reference tothe effects it is intended to deal with. As needed, detailed plans, designs,equipment description, and operating procedures are described.

* Description of monitorinq program: Monitoring provides information on theoccurrence of impacts. It helps identify how well mitigation measures areworking, and where better mitigation may be needed. The monitoring programshould identify what information will be collected, how, where and how often. Itshould also indicate at what level of effect there will be a need for furthermitigation. How environmental impacts are monitored is discussed below.

* Responsibilities: The people, groups, or organizations that will carry out themitigation and monitoring activities are defined, as well as to whom they reportand are responsible. There nay be a need to train people to carry out theseresponsibilities, and to provide them with equipment and supplies.

* Implementation Schedule: The timing, frequency and duration of mitigationmeasure and monitoring are specified in an implementation schedule, and linkedto the overall sub project schedule.

* Cost Estimates and Source of Funds: These are specified for the initial subproject investment and for the mitigation and monitoring activities as a subproject is implemented. Funds to implement the EMP will predominantly comefrom the operator with possible assistance from the TEDAP.

Monitoring methods:

Methods for monitoring the implementation of mitigation measures or environmental andsocial impacts should be as simple as possible, consistent with collecting usefulinformation, so that the operator can apply them. For instance, they could just be regularobservations of the sub project activities or sites during construction and then when inuse. Are plant/equipment being maintained and damages repaired, does a water sourcelook muddier/cloudier different than it should, if so, why and where is the potentialsource of contamination. Most observations of inappropriate behavior or adverseimpacts should lead to common sense solutions. In some case, e.g. high emission ofgreen house gases or loss/death of flora and fauna, there may be need to requireinvestigation by a technically qualified person.

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Annex D:

Table D.1 Adverse Environmental and Social Impacts from Rural Energy Type Sub Projects to berated H, M, or L in ESIA/EMP

IMPORTANT ENVIRONMENTAL COMPONENT EDvs DIFFERENT RURAL ENERGY TYPE SUB . CD c C - n

co -D -4 CDPROJECTS 0oC.c 0 (a

CDDO

BIOPHYSICAL

Micro climateAir qualityGreenhouse gasesWater quality - chemicalWater quality - physicalSoil quality - chemicalSoil quality - physical

Soil ErosionSoil FertilitySalinizationWater logging _ X X

Increased surface drainage ===-Groundwater lossesSurface water lossesBiodiversity lossLoss of natural ecosystemsNatural forest lossOther natural vegetationWeed invasionInvasion of new speciesModification of natural ecosystemsSedimentationFood contaminationIncreased flooding = = === =Increased mudflows/ landslidesDesertification

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SOCIAL / CULTURAL

Health and safetyLoss of livelihoodLoss of goods and servicesSocial/cultural lossesLoss of empowermentGender inequalityLoss of LandLoss of cultural resourcesLoss of aesthetics

H = highly significant potential impactM = moderately significant potential impactL = low significant potential impact

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Annex E: Generic Mitigation Measures for adverse impacts

Table E.1

Mini - hydro: Mini-hydro schemes can take advantage of local water courses to generate electrical energy to meet local rural needsor to sell back into the National grid system. A real threat would be mismanagement of upstream watershed resources that wouldaffect water flows available to the hydro scheme.Potential Impact Consequences Mitigation Measures Legal Instrumentation RemarksHabitat loss Important downstream Downstream surveys to List Applicable Local Natural Habitats OP 4.04

habitats may rely on determine water needs Laws/ Internationalregular water flows and of important habitats Agreements/Conventiominimum flows for their and ecosystems. ns.maintenance Avoid schemes on water

courses with significantdownstream habitats,flora and fauna

Loss of water resources Loss of domestic supply Schemes should be List Applicable Local Involuntary Resettlementto downstream users Loss of irrigation water established only where Laws/ International (OP4.12)Downstream users may downstream effects are Agreements/Conventiohave to relocate negligible or where ns.

water used is quicklyreturned to the watercourse.

Water and soil Lubricating oils and Ensure proper handling List Applicable Localcontamination greases on machinery and storage of lubricants Laws/ International

can contaminate and storage and Agreements/Conventiodownstream domestic disposal of used ns.water supplies and lubricants.effect downstreamaquatic communities

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Personal injury as a Loss of life, limb and Ensure site and allresult of accessible injuries requiring equipment well shieldedequipment medical attention from human interference

Loss of productivity and Safety warnings -family income community workshops

and signageMajor Benefits:Local supply of affordable electricity; community economic development possible re: light industry; non-reliance on national grid and

power provided through non-renewable sources or sources that create emissions and greenhouse gases; opportunity to sell excesspower through the national grid; reliable supply not dependent on national supply; all of the other benefits of rural electrification.

Table E.2

Other Water power: Water power can be used to create the necessary energy for operating a variety of processing machinery suchas sawmills, grist mills and other simple machinery. Modification of hydrological cycle through watershed mismanagement upstreamthat could result in unreliable supply of water.Potential Impact Consequences Mitigation Measures Legal Instrumentation RemarksPersonal injury due to Health costs Ensure that all moving List Applicable Local

moving parts of Lost work days parts are well protected Laws/ Internationalunprotected machinery Ensure safety Agreements/Conventio

instructions to local ns.people; provideadequate andappropriate safetysignage

Water contamination Wastes and lubricants Ensure proper List Applicable Local Natural Habitats OP 4.04find their way back into management of wastes Laws/ Internationalthe water course and and effluents Agreements/Conventiothreaten aquatic ns. Example, Ramsar.ecosystems Convention ondownstream as well as Wetlands (1971)

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downstream usersMajor Benefits:Opportunity to establish basic primary processing industries in rural communities which leads to the socioeconomic uplifting of thecommunity. No reliance on fossil fuels and thus, no air emissions and contribution to greenhouse gases.

Table E.3

Solar Energy: This free source of energy can be tapped to provide a clean source of useable energy through the installation ofphotovoltaic (PV) cells. Could be easily fitted for schools and for EPI in Health Centers.Potential Impact Consequences Mitigation Measures Legal Instrumentation RemarksSurface water and Depending upon the Proper List Applicable Local Pilot stage PVs containgroundwater type of cell, chemical decommissioning of PV Laws/ International cadmium and copper.contamination as a constituents can units, recycling and Agreements/Conventio Some PVs containresult of disposal of PV significantly affect disposal of constituent ns. gallium arsenidecells after expiration downstream users and parts and materials

aquatic ecosystemsSafety - installers are Deaths and injury Ensure proper safetyusually on rooftops resulting in lost days of procedures are followed(falls); electrocution is a work and health costs and that installers arepossibility well trainedMajor Benefits: Utilization of the ultimate free renewable energy source. Provides relief from high priced fossil fuels and avoidssome of the impacts that would be experienced through the use of other renewable forms of energy. One kW of PV created energycan offset 600-2300kg of CO2 annually as well as other pollutants.

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Table E.4

Wind Energy: Wind farms located on sites of constant wind would be able to provide generation of electricity for a community, aregion and for the sale of surplus electricity to the national grid. Individual wind generators or small groups of generators couldprovide the power for individual or large irrigation schemes.Potential Impact Consequences Mitigation Measures Legal Instrumentation RemarksAesthetics In areas of natural Seek out wind farm sites List Applicable Local Aesthetics is a matter of

beauty which attract where aesthetics will not Laws/ International opinion although ainternational tourists and be an issue Agreements/Conventio conflict with internationalforeign exchange, ns. tourism opportunitiesestablishment wind should be avoidedfarms would reduce theaesthetic s of thelocation

Natural habitat Optimal sites for wind Seek out wind farm sites List Applicable Local Natural Habitats OP4.04farms may be in areas where significant natural Laws/ Internationalof significant natural habitats will not be Agreements/Conventiohabitat and some or all threatened ns.of this habitat may haveto be removed ormodified (e.g. highnatural forest)

Involuntary Favorable sites may be Avoid such sites but if Involuntary ResettlementResettlement of people inhabited, necessitating not possible, ensure full (OP4.12)leading to physical re- the involuntary and satisfactorylocation resettlement of people resettlement and

compensation

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Soil erosion During construction and Construction to be List Applicable Local This impact will probablymaintenance heavy carried out carefully to Laws/ International be of low significanceequipment could cause avoid unnecessary Agreements/Conventioremoval of vegetation disturbance of soil ns.and soil erosion, Avoid constructionparticularly since best during rainy seasonslocations are likely to beon high, and possiblysteep, sites.

Personal injury due to Health costs Ensure that all moving List Applicable Localmoving parts of Lost work days parts are well protected Laws/ Internationalunprotected machinery Ensure safety Agreements/Conventio

instructions to local ns.people; provideadequate andappropriate safetysignage

Major Benefits:Local supply of affordable electricity; community economic development possible re: light industry; non-reliance on national grid andpower provided through non-renewable sources or sources that create emissions and greenhouse gases; opportunity to sell excesspower through the national grid; reliable supply not dependent on national supply; all of the other benefits of rural electrification.

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Table E.5

Methane Gas Capture: Large municipal waste dumps generate vast amounts of methane gas which eventually escapes andcontributes to global warming. Methane gas can be captured and converted to a useful form of energy (e.g. electricity). Capture canalso be made from municipal and industrial wastewater systems.Potential Impact Consequences Mitigation Measures Legal Instrumentation RemarksIncrease gas amounts to Increased greenhouse Effective management List Applicable Localthe atmosphere as a gas emissions to ensure that gases Laws/ Internationalresult of operator pulling from all areas of the Agreements/Conventiogas from the rich 'core' dump site are extracted. ns.and ignoring theperipheryNatural habitat loss Biodiversity loss Ensure location of List Applicable Local Natural Habitats

thermal plant does not Laws/ International (OP4.04)remove significant Agreements/Conventiohabitat ns.

Relocation of PAPs as a Resettlement and Ensure location of List Applicable Local Involuntary Resettlementresult of location of compensation required thermal plant is not in an Laws/ International (OP4.12)thermal plant area of habitation or Agreements/Conventio

where it will disturb ns.existing communitiesand/orProvide resettlementand full compensationfor any lossesencountered

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Loss of surface water Effect on aquatic Closed system recycling International Waterwaysand increasing water ecosystem of water if possible (OP7.50); Naturaltemperatures as a result Habitats(OP4.04)of drawing surface waterfor evaporative cooling

Major Benefits: Capture of a by-product (methane) of waste dumps that contributes to global warming as much as 21 times theequivalent amount of CO2. Where the sub project focuses on municipal and industrial waste, these sources of pollution will bepartially cleaned.

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Table E.6

Wood Resources (existing forested areas): Forests and other sources of rural wood supply are the most common form of ruralenergy utilized for both cooking and heating purposes. Wooded areas managed effectively can ensure that rural populations have acontinuous supply of fuelwood to meet daily needs.Potential Impact Consequences Mitigation Measures Legal Instrumentation RemarksAir emissions and the Contribution to global Introduction of fuel List Applicable Local The contribution to theproduction of warming efficient stoves; Laws/ International global cumulative impactgreenhouse gases Respiratory problems Supplementing of wood Agreements/Conventio is minor.

with LPG, ns. Whether forest wood isImplementation of used for heating andCommunity Forest cooking or it is left toManagement Plans decay naturally, the

amount of CO2 releasedis the same.

Loss of CO2 absorptive Contribution to global Forest management on List Applicable Localcapacity warming a sustained yield basis Laws/ International

Agreements/Conventions. Example is theKyoto Protocol

Loss of biodiversity Loss of other forest Forest management on List Applicable Local Before forests arevalues (medicines, food) a sustained yield basis Laws/ International designated to beLoss of species whose Protection of special Agreements/Conventio managed for fuelbeneficial properties yet areas and species at ns. supplies, ecologicalto be discovered risk surveys should probably

be conducted.Natural Habitats(OP4.04) and Forestry(OP4.36)

Loss of habitat Modification to forest Forest management on List Applicable Local Any natural forest that isstructure could lead to a sustained yield basis Laws/ International to be used as a basis forthe loss of important but also taking into Agreements/Conventio wood energy productionfloral and faunal habitats account important ns. should be subjected to

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species and habitats an ecological survey tothat require protection identify important

features to be protected.

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Increased soil erosion Loss of basis for Wood extractionproductivity; surface methods not prone towater sedimentation; resulting in soil erosionaquatic ecosystem Selective harvestingmodification; loss of If forest roads to beflood control created, design andmechanisms implementation to be in

a ecologically suitablemanner

Local climate change Agricultural production Forest management on This situation could occurreduced a sustainable basis where a large forestedDiscomfort level area is entirely removedModification of local and Irrigation from both Forest management on List Applicable Localregional hydrological groundwater and a sustainable basis Laws/ Internationalregimes surface water sources Agreements/Conventiocould be affected. ns.Flooding, leading toproperty losses and lossof productive land

Loss of cultural values Local culture is eroded Avoid areas of cultural Forests and individualsignificance groups of trees and

single trees may havereligious and otherceremonial significancefor local peopleCultural Properties(OPN 11.03)Loss of livelihood Increased Poverty Avoid areas of important Involuntary Resettlement

to livelihood sustenance (OP4.12)

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Major Benefits: Source of fuel is a renewable resource and is local. Removes dependence upon high costs, price fluctuations, andoften, foreign non-renewable fossil fuels. If owned and managed by the local community on a sustainable basis, provides manybenefits both locally and globally (the benefits gained are the impacts (indicated above) not encountered). Although burned woodemits similar amounts of C02 as decaying wood, the wood burned would replace the need for C02emitting fossil fuels.

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Table E.7

Wood Resources (establishment of new forest areas): In areas where it is feasible to establish fast growing plantations, annualincremental growth can be harvested for domestic fuel for heating and cooking as well as for purposes ele trical generation.Potential Impact Consequences Mitigation Measures Legal Instrumentation RemarksLoss of groundwater Loss of resource for Select species that do List Applicable Local

other users including not place burden on Laws/ Internationaldomestic water supply local groundwater Agreements/Conventioand irrigation from both supplies ns.surface and Select areas ofgroundwater establishment where

groundwater resourcesare not critical for otheruses

Loss of biodiversity Natural areas to be used Avoid natural non- List Applicable Local Natural Habitatsfor forest establishment forested areas (e.g. Laws/ International (OP4.04)could contain important mountains, grasslands, Agreements/Conventioflora and fauna as well wetlands) that are ns.as important habitats important sources of

biodiversityRelocation of People living in the Avoid areas where List Applicable Local Involuntary Resettlementsettlements proposed area for forest people are settled and Laws/ International (OP4.12)

establishment will have where land is important Agreements/Conventioto be resettled and/or for grazing, cropping or ns.compensated for other livelihood uses.resource losses (e.g. Where difficult to avoid,grazing rights) ensure full resettlement

and /or compensationfor losses.

Loss of cultural values Local culture is eroded Avoid establishing Cultural Propertiesforests in areas of (OPN1 1.03)cultural significance

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Deteriorating health as a Health costs Avoid establishing List Applicable Local Pest Managementresult of handling and Loss of work days species with known pest Laws/ International (OP4.09)use of pesticides problems Agreements/Conventio

Use integrated pest ns.management approachUse only WHOapproved pesticidesProvide proper trainingin handling andapplication of pesticidesProvide effective andsafe storage ofpesticides

Contaminated water and Loss/modification of Same as above List Applicable Local Pest Managementsoil as a result of use of aquatic ecosystems Laws/ International (OP4.09)pesticides Loss of domestic water Agreements/Conventio

supply ns.Health deterioration as aresult of drinkingcontaminated waterLoss of soil productivity

Loss of livelihood Increased poverty Avoid areas to be List Applicable Local Involuntary Resettlementestablished that are Laws/ International (OP4.12)important to livelihood of Agreements/Conventioindigenous groups ns.

Major Benefits: Source of fuel is a renewable resource and is local. Removes dependence upon price fluctuations, and often,foreign non-renewable fossil fuels. If owned and managed by the local community on a sustainable basis, provides many benefitsboth locally and globally (the benefits gained are the impacts (indicated above) not encountered.Increases region's and country's C02 absorptive capacity base; reduces threat of soil erosion and restores and improves thehydrological cycle; local climate improvement; improved flood control; local people remain in area and don't migrate to urban areas.

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Table E.8

Biomass (agricultural and forestry wastes): Large forestry (e.g. logging and sawmilling) and agricultural (e.g. sugar cane)operations produce significant amounts of biomass waste that can be used for energy production.Potential Impact Consequences Mitigation Measures Legal Instrumentation RemarksLoss of nutrient and Impoverished soils Ensure that a significant List Applicable Localorganic matter to the soil resulting in lowered amount of agricultural Laws/ International

productivity and forest residue Agreements/ConventioSoil moisture holding remains on site ns.capacity reduced

Air emissions Burning of organic No mitigation List Applicable Localwastes to produce Laws/ Internationalelectricity results in Agreements/Conventiogreenhouse gas ns.emissionsHealth hazards fromemissions

Loss of natural habitat Forest waste provides Ensure that a significant List Applicable Localand biodiversity habitat for a myriad of amount of forest residue Laws/ International

organisms, some of remains on site Agreements/Conventiowhich could be ns.beneficial to the forestecosystem

Major Benefits: Reduces reliance on costly non-renewable fossil fuels; provides additional income for forest and agriculturalowners/operators.

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Table E.9

Biogas production: In rural communities small digesters can produce methane from animal manure which can then be used forcooking and heating. Residue from the digestion process can be put back on the soil.Potential Impact Consequences Mitigation Measures Legal Instrumentation RemarksLoss of organic matter Loss of crop production Return vegetation List Applicable Localto the soil and loss of moisture matter to the soil Laws/ International

holding capacity in the Agreements/Conventiosoil ns.

Safety - villagers Deaths and injuries Training in the use andcareless in the handling handling of gasof gas IMajor Benefits: Inexpensive source of cooking and heating fuel for impoverished communities. Reduces reliance on commercialsupplies of gas and on forested areas that would be allowed to recover. Reduces natural habitat destruction.

Table E.10

Energy Efficient Buildings: Energy efficient design and construction for rural public/commercial buildings can lead to less energyconsumed for lighting, air conditioning, water heating and space heating.Potential Impact Consequences Mitigation Measures Legal Instrumentation RemarksAesthetics Buildings designed with Energy efficient designs Local building by-laws

more glass for heating to be incorporated intoand lighting and with new buildings in newsolar panels, may not be sections of urban areas.aesthetically pleasing, Energy efficient designparticularly if such for old historicalbuildings are designated buildings should befor sections of urban incorporated internallyareas designated without affectinghistorically significant external features.with a concentration ofhistorically significantbuildings (purpose and

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I design) I I II Major Benefits: Reduced fossil fuel based electricity consumption for air conditioning, water heating, space heating and lighting.

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Annex F: Generic Guidelines for Preparing and Implementing aPublic Consultation Plan for an ESIA

The purpose of community involvement is not to find the 'right' answer from thecommunity, but to engage the community in the sub project so that they can shareownership and to give them the opportunity to inform the design process. It will also givethe community the comfort of knowing early on in the process the mechanism throughwhich affected individuals/households will be treated. In developing strategy for publicinvolvement there are a number of key issues that must be considered:

* Define goals clearly* Secure commitment to effective implementation* Plan consultation timing and phasing* Provide adequate resources* Be aware of site specific sensitivities* Be aware of the historical context* Recognize the interest of developers/operators* Be prepared to hear different views.

In planning for the process of a public involvement program, the followingprincipals must be followed:

* Identify all stakeholder groups (typically integrated with social assessment). Whowill be affected directly and indirectly? Who else might have an interest or feelthat they are affected?

* Identify the key issues around which public involvement will be required(scoping). These key issues would include:

> environmental and social issues, or decisions at stake> key organizations and interested parties involved> local authorities and the agencies involved> size of the issue or importance of the decision> urgency and time frame

* Understand the decision making process

> identification of parties making the decisions> where in the project cycle decisions are made

* Determine the necessary level of involvement. Meaningful public involvementtakes place at three levels:

> conveying information to the public> listening to the opinions and preferences of the public> involving the public in making decisions

The nature and size of the project, combined with both the nature and number ofstakeholders and the status of national legislation, will largely define when,

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where, and at what level public involvement is required for an EA and theenvironmental management plan.

* Identify key points to be included in the public involvement process

Timely disclosure of information is key and it may be useful to develop systems toensure that stakeholders receive information on time and in an accessible format.Whilst it is important that consultation take place before major decision points, theaim should be to facilitate consultation throughout the preparation andimplementation phases. This implies that consultation will often be necessary as partof the research effort of the EA and in the development of mitigation measuresduring the analysis phase of the study.

* Select most effective involvement techniques to be used* Define a communication methodology* Develop a budget

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I

II

Table F. 1: Methods and Levels of Public Involvement

Method Description Target Level of Public Public InvolvementInvolvement AnalysisMedia * operator will describe what is General public * education * no participationannouncement occurring;

* operator could solicit input fromthe general public * information * some participation

feedbackStore front * operator has open door policy for General public * education to * none to someaccess public to "walk in" and discuss information participation

project, issues and offer input feedbackNewsletter * operator forwards regular progress Identified * education * no participationnewsletters to selected individuals stakeholders -

and groups (stakeholders) groups / individualsQuestionnaire * this method is more for gathering General public * education and * could be reasonableinformation as input to the project information participation

gathering butcould becategorized asconsultation aswell

Interest group * operator holds regular meetings Identified * education * no participationmeetings with different interest groups to stakeholders -educate groups

* for information feedback * information * some participation* for input to decision making feedback * more and possibly* consultation or significant participation

. _ joint planningAdvisory groups * operator formulates an advisory Advisory groups * consultation * some participationgroup comprised of comprised of * joint planning * significant participationrepresentatives of various selected individuals

stakeholder groups

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General * operator holds general meetings at General public * education * no participationmeetings strategic times during the process * information * some participation

feedbackKnowledgeable * operator identifies the Knowledgeable * education * no participationand influential knowledgeable and influential and influential * information * some participationpersons individuals in the community persons feedback * some participation but

* consultation could be very significantPlanning group * operator assembles a group from Planning group * joint planning * very significant

the stakeholders who will provide comprised of participationplanning input selected or elected

individuals

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Annex G: Environmental and Social Appraisal Form (ESAF)

The Environmental and Social Appraisal Form (ESAF) has been designed to assist inthe evaluation of design tender/bid proposals for the Rural Electrification packages forthe TEDAP. The form is designed to place information in the hands of the DistrictEnvironmental Coordinators and the NEMC so that the operators applications forenvironmental and social clearance can be reviewed and cleared.

The ESAF contains information that will allow reviewers to determine thecharacterization of the prevailing local bio-physical and social environment with the aimto assess the potential sub project impacts on it. The ESAF will also identify potentialsocio-economic impacts that will require mitigation measures and or resettlement andcompensation.

Operator Bid Application Number:....................

Part 1: Identification

1. Operators Name:

2. Operators intended Sub project Location (this may be more than one location for abid package):

3. Reason for Field Appraisal: Summarize the issues from the ESIA or ESMP thatdetermined the need for a Field Appraisal.

4. Date(s) of Field Appraisal:

5. Field Appraisal Officer and Address:

6. Service Provider/Operators ESIA Consultant's Representative and Address:

7. Operators Representative and Address:

Part 2: Description of the Operators Bid Application

8. RE Application Details: Provide details that are not adequately presented in theoperator's application. If needed to clarify application details, attach sketches of thesubproject component(s) in relation to the community and to existing facilities

Part 3: Environmental and Social Issues

9. Will the sub project:* Need to acquire land? Yes . ..... .......* Affect an individual or the community's access to land or available resources?

Yes . No.* Displace or result in the involuntary resettlement of an individual or family?

Yes . No.

If "Yes", tick one of the following boxes:

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[]The Resettlement Action Plan (RAP) included in the subproject application isadequate. No further action required.O]The RAP included in the subproject application must be improved before theapplication can be considered further.OA RAP must be prepared and approved before the application can be consideredfurther.

10. Will the sub project:* Encroach onto an important natural habitat? Yes ...... No.* Negatively affect ecologically sensitive ecosystems? Yes ... No.

If "Yes", tick one of the following boxes:FIThe ESIA and or ESMP included in the operator's application is adequate. No furtheraction required.n]The ESIA and or ESMP included in the operators application must be improved beforethe application can be considered further.[]An EMP must be prepared and approved before the application can be consideredfurther.

11. Will this project involve or result in:

* Diversion or use of surface waters?* Construction and/or rehabilitation of Dams?

If "Yes", tick one of the following boxes:oThe application describes suitable measures for managing the potential adverseenvironmental effects of these activities. No further action required.[]The application does not describe suitable measures for managing the potentialadverse environmental effects of these activities. An Environmental Management Planmust be prepared and approved before the application is considered further.nThe application describes suitable Dam Safety measures. No further action required.[]The application does not include a Dam Safety Measures. A Dam Safety MeasuresReport must be prepared and approved before the application is considered further.nThe application describes Dam Safety measures that are not adequate. A Dam SafetyMeasures Report that provides suitable and acceptable dam safety measures must beprepared and approved before the application is considered further.

12. Are there any other environmental or social issues that have not been adequatelyaddressed?

If "Yes", summarize them:

and tick one of the following boxes:

o Before it is considered further, the application needs to be amended to includesuitable measures for addressing these environmental or social issues.nI .An Environmental Management Plan needs to be prepared and approved beforethe application is considered further.

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Part 4: Field Appraisal Decision

nThe operator's application can be considered for approval.

Based on a site visit and consultations with both interested and affected parties, the fieldappraisal determined that the community and the proposed operator adequately addressenvironmental and/or social issues as required by the TEDAP's ESMF and meets therequirements of Environment Act, in Tanzania, NEMC and the World Bank OP4.01

nFurther subproject preparation work is required before the application can beconsidered further.

The field appraisal has identified environmental and/or social issues that have not beenadequately addressed. The following work needs to be undertaken before furtherconsideration of the application:

All required documentation such as an amended application, EMP, RAP, Dam SafetyMeasures Report. Screening Forms, draft Civil works contracts, etc., will be added to theoperators application package before it is considered further.

Name of District Environmental Coordinator and NEMC's Head of EIA Division (print):

Signature:

Date: .....................................

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Annex H: Guidelines for Assessment of Dams and Preparation of aDam Safety Measures Report

Purpose and Scope of Work

The purpose of the dam safety assessment is to prepare a reconnaissance-levelassessment of quality management of a dam or weir, and of the reliability of the watersource. The work will involve initial and wrap-up meetings with personnel responsiblefor the dam/weir; a field examination; and a Dam Safety Report of findings andrecommendations. If deemed necessary, the report will provide terms of reference formore thorough follow-up activities to identify (to feasibility level with cost estimates) theinvestments and other measures needed to ensure the safety of the dam/weir.

Qualifications of the Dam Specialist:

The work will be carried out by a Dam Specialist (DS) of suitable independence from theowner/operator of the dam/weir, and who has not been associated with the design,construction, and operation of the dam/weir. The DS will have appropriate qualificationsand substantial experience with the design, construction, operation and maintenance ofdams, especially in developing countries.

Investigations of Operating Conditions:

The owner/operator of the dam/weir will provide the DS with the following information:a) Construction year, first impoundment;b) Dam size: height (m), crest length (m);c) Reservoir size (m3);d) Dam type;e) Estimated population downstream that would be threatened by dam failure; andf) Estimated replacement cost.

The DS will discuss with the owner/operator past and current O&M practice withparticular reference to:

a) Existing records;b) Maintenance logbooks;c) Instrumentation and monitoring;d) Emergency preparedness;e) O&M resources (human and financial); andf) Status of reservoir sedimentation and measures to prolong the life of storage

(reservoir conservation).

Investigations of Structural Conditions:

Depending on the type of dam/weir, a suitable checklist for the inspection activities willbe used. Inspection details are left to the DS who will carry out the task; however theinspection report should contain the following information:

a) Construction year, first impoundment;b) Dam/weir size: height (m), crest length (m);c) Reservoir size (m3);d) Dam type;

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e) Geotechnical aspects of foundations;f) Design flood return period (years);g) Availability of as-built drawings;h) Spillway reliability assessment;i) Bottom outlet reliability assessment;j) Seepage;k) Deformations, settlements;I) Conditions of slopes/concrete structures;m) Active storage (m3);

n) Estimated population downstream that would be threatened by dam failure; ando) Estimated replacement cost.

Investigations of Regulatory Framework:

The DS will:* Discuss with relevant authorities (regulator, line ministries, utilities, etc.) the

existing regulatory framework for dam/weir safety;* Compare the existing regulatory framework, in a matrix format, with comments as

necessary, to the "essential elements" identified in the World Bank publication"Regulatory Frameworks for Dam Safety - A Comparative Study"'4;

* Identify opportunities and constraints to the achievement of the "essentialelements"; and

* If judged feasible, develop terms of reference for an action plan aimed atachieving the "essential elements" in the national context (priorities, institutionalreforms, incentives, enforcements, etc.)

Dam Safety Report:

The DS will produce a Dam Safety Report that includes:* Description of the dam/weir, ownership, and regulatory framework.* Dam safety assessment according to international standards (ICOLD).* Structural measures required to bring safety to acceptable standards, including a

preliminary cost estimate differentiating interventions in three categories: a)emergency (human life at immediate risk); b) urgent (likely to pose a risk tohuman life, major assets at risk); c) significant (any needed rehabilitation beyondmeaningful maintenance).

* Non-structural measures (instrumentation and monitoring, stand-by electricitysupply, training, dam safety plans) to be implemented to make dam safetysustainable after rehabilitation; reference should be made to OP4.37 "Safety ofDams", and appendices to the publication "Regulatory Frameworks for DamSafety - A Comparative Study".

* Preliminary assessment of reservoir sedimentation status, and recommendationsaimed at prolonging the life of storage facilities.

* Resources needed for reliable O&M (human resources and recurrent costs).* Overall assessment of challenges and opportunities for the management of the

dam/weir.* Terms of reference for the preparation of feasibility studies for any required

rehabilitation measures (structural and non-structural).

14 D. Bradlow, et al. (2002) "Regulatory Frameworks for Dam Safety - A Comparative Study" TheWorld Bank Law, Justice, and Development Series. ISBN 0-8213-5191-5.

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Annex 115: Environmentally Sensitive Areas ( ESA's) And EcosystemsIn Tanzania

1. Areas prone to natural disasters (geological hazards, floods, rain storms,earthquakes, landslides, volcanic activity, etc.)

2. Wetlands: (Flood plains, Swamps, lakes, rivers, etc.) water bodies.

3. Areas susceptible to erosion e.g. (a) hilly areas with critical slopes and (b)unprotected or bare lands.

4. Areas of importance to threatened cultural groups.

5. Areas with rare/endangered/or threatened plants and animals.

6. Areas of unique socio-cultural, historic archaeological, scientific, tourist areas.

7. Polluted areas.

8. Area subject to desertification and bush fires.

9. Coastal areas and Marine ecosystems, such as coral reefs, Islands, lagoons andestuaries, continental shelves, beach fronts and inter tidal zones.

11. Areas declared as, national parks, water shed reserves, forest reserves, wildlifereserves and sanctuaries, sacred areas wildlife corridors and hot spring areas.

12. Mountainous areas, water catchment areas and recharge areas of aquifers.

13. Areas classified as prime agricultural lands or range lands.

14. Green belts or public open spaces in urban areas.

15. Burial sites and graves.

15 Culled from Appendix 10 of Vol. 1, Tanzania Environmental Impact Assessment Procedure andGuidelines (rev. March 2002).

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Annex J: REA Capacity Building Strategy

Capacity Building Strategy for REA

REA will establish Environmental and Social Unit (ESU). A key requirement forsuccessful implementation of rural electrification projects is to develop a clearunderstanding of environmental management requirements for the construction,operation and maintenance of RE projects (grid and off-grid). This will enableREA to ensure that appropriate clauses concerning all aspects of environmentalmanagement (especially mitigation and clean up) are included in future contractswith service providers. This will enable REA to clearly define and implementmonitoring programs to ensure compliance with these contractual obligations.

The proposal to develop environmental capacity in REA comprises three inter-related actions:

* Production of Policy, Procedures and Guidelines Manual for REA staff

* Map out structure, staffing requirement, and operational framework for thenew Environmental and Social Unit

* Develop environmental and social capacity within REA by conducting atraining needs assessment and training staff

Production of a Policy, Procedures and Guidelines Manual for REA staff

Foremost it is necessary for REA to clearly define its environmental policy andstrategy. This activity should be driven by the ESU in REA and the resultantpolicy should be approved by the REA Board. Development of an environmentaland social policy should not be a difficult task given that there are numerousexamples from other countries, which could be used as a point of departure fordeveloping a policy for REA. Following this it will be possible to establish anenvironmental management system.

The proposed manual should detail the regulations and procedures applicable to:

Determination of the level of environmental (including socio-economic)study to which a proposed project is to be subjected;Ensuring that the requirement to undertake environmental studies isincluded in Terms of Reference for detailed project design studies (forexample, that the ESU should review all such terms of reference);Compensation and resettlement;Appraisal and approval of ElAs, EMPs, RAPs and other safeguarddocuments;

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* Ensuring that EMPs are included in the tender and contract documents forRE sub-projects;

* Monitoring of compliance by contracted service providers with the requiredmeasures of the EMP during construction, operation and maintenance;Co-ordination and collaboration with NMEC and district authorities inrespect of environmental and social issues.

Develop a structure and operational framework for ESU

The development of a comprehensive set of policies, procedures and guidelinesis one step to achieving integration of environmental and social management intothe day-to-day work of the agency. However, it is important that personnelresponsible for implementing the policy and strategy are equipped with thenecessary knowledge and skills to fulfill their functions.

The main areas where increased capacity is required include management of theenvironmental assessment and planning process undertaken either internally orby consultants and compliance with national and corporate environmental andsocial policies, regulations and practices during the planning, construction andoperation stages.

ESU structure, operational framework and TORs of key staff should beestablished.

Develop environmental capacity within REA by conducting a training needsassessment and training staff

Continuous in-service training in respect of environmental issues needs to beprovided at the various levels within REA. It is recommended that emphasis beplaced on developing capacity within the company to deliver training on acontinuous basis to existing and new staff (i.e. training of trainers), rather thanproviding once-off training to staff in general. NEMC experts may be used toprovide such in-house or on the project site training.

In the first instance a functional analysis should be used to define the capacitybuilding requirements (e.g. training and communications equipment) for REAstaff. The functional analysis and capacity needs assessment should be carriedout across all the sectors of REA. This will also allow for a harmonized trainingprogramme to be instituted particularly where personnel from different sectorsattend common training courses at the same time.

It is proposed that environmental and social issues are integrated in Sida capacitybuilding program and followed up as needed under the TEDAP. The outputs ofthis exercise could include, for example, a long-term training plan for professionalpersonnel involving:

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Three levels of training are envisaged:

In-depth training, including technical procedures where relevant, to a levelthat allows trainees to go on to train others;Sensitisation, in which the trainees become familiar with the issues to asufficient extent that they are able to precisely define their requirementsfor further technical assistance; and

* Awareness-raising, in which the participants acknowledge the significanceor relevance of the issues but are not required to have technical or in-depth knowledge of the issues.

Much of the capacity building can be provided through the mechanism of two,three or four day workshops. The training materials developed for the workshopshould include at least the following components:

Case studies (where possible developed by the workshop participants)based on the environmental studies of other energy projects in Tanzaniaor the region that can be used to demonstrate the basic principles ofenvironmental assessment and management planning and highlightissues related to protected areas, wetlands, sensitive habitats andaffected people;Workshopping the screening guidelines

* An overview of environmental and social assessments (scoping, baselinemethodologies, impacts and mitigation measures, environmentalmanagement planning, public participation, monitoring and evaluation).

* Review of relevant national, corporate and donor environmental policies,legislation, regulations, procedures and guidelines;

* Designing effective public awareness campaigns; and* Training of trainers to provide in-house capacity development (to be

developed as a distinct separate component).

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Indicative time required and budget for implementation

The indicative time required and budget for implementing these capacity building

components is shown in Table 1 below:

Table 1: Capacity building measures per component

Indicative Budget

. . Individual(s) Indicative (US Dollars)Isu cin eurd responsible Teqimed Shared between

Erequired TEDAP and Sida

Produce Policy, Environmental

Corporate Procedures and ecialistalenvironmental Guidelines manual Specialist inpolicronmentalu Ges frE mstanual collaboration with 4 m/m US$20,000policy, procedures for EdM staff local (Sida)

and guidelines environmental

consultantEdM

. Map out framework EnvironmentalEnvironmental for transforming Specialist in US$ 10,000

management and existing EU into collaboration with 2 m/m (Sida)

co-ordination in Environment, Health local

and Safety Unit environmentalconsultant

US$ 20,000

Capacity Conduct needs Local (consulting fees)

Development in assessment. environmental 6 m/m over (Sida)

the Environment Train staff training consultant a twoy US$ 50 000

(logistical support:training in districts)TEDAP

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