LUSAKO RAPHAEL SENIOR ENVIRONMETNAL CONSULTANT AUGUST 2015
LUSAKO RAPHAEL SENIOR ENVIRONMETNAL CONSULTANT AUGUST 2015
• A leading Tanzanian Company provider of environmental, health and safety, risk and social consulMng services
• Two broad pracMce areas are: – Impact Assessment and Planning – Performance, Assurance and Risk Management
• Served over 100 companies in and around Tanzania and East Africa • Performance assurance by implemenMng ISO 9001: 2015 requirements • Website: www.tansheq.com • Facebook: www.facebook.com/tansheq
Financial InsMtuMons involved in Project Finance recognize that social and environmental risks may affect the ability of
the project to generate revenues
Project Finance is a specific type of financial transacMon in which lenders rely solely on the revenues generated by a “project” as the source of repayment and security for the
loan (aka Revenue Based Finance)
WHY EQUATOR PRINCIPLES?
Which is formed by
On Behalf of
Are Created By
EQUATOR PRINCIPLES ASSOCIATION
STEERING COMMITTEE
EQUATOR PRINCIPLES ASSOCIATION
EQUATOR PRINCIPLES FINANCIAL
INSTITUTIONS (EPFI)
EQUATOR PRINCIPLES ASSOCIATION SECRETARIAT
Runs day to day business of
Private sectors financial insMtuMons which are members
of Equator Principles
HOW DOES IT WORK?
Scope of Projects Covered by Equator Principles
COVERED PRODUCTS 1. PROJECT FINANCE
ADVISORY SERVICES 2. PROJECT FINANCE 3. BRIDGE LOANS 4. PROJECT-‐RELATED
CORPORATE LOANS (including Export Finance in the form of Buyer Credit)
MAIN CRITERION (CAPITAL COST OF AT LEAST US$ 10 M)
1. REVIEW(AND(CATEGORIZATION(2. ENVIRONMENTAL(AND(SOCIAL(ASSESSMENTS(3. APPLICABLE(ENVIRONMENTAL(AND(SOCIAL(
STANDARDS(4. ENVIRONMENTAL(AND(SOCIAL(MANAGEMENT(
SYSTEM(AND(EQUATOR(PRINCIPLES(ACTION(PLAN(
5. STAKEHOLDER(ENGAGEMENT(6. GRIEVANCE(MECHANISM(7. INDEPENDENT(REVIEW(8. COVENANT(9. INDEPENDENT(MONITORING(AND(REPORTING(10. REPORTING(AND(TRANSPARENCY(
Principle 1: Review and CategorizaMon (1) EPFI categorize proposed finance bound project based on the magnitude of its potenMal environmental and social risks and impacts
SCREENING
CATEGORY A
potenMal significant adverse env & social risks and/or diverse, irreversible or unprecedented impacts
CATEGORY B
potenMal limited adverse env & social risks and/or few , site-‐specific, largely reversible and readily addressed impacts
CATEGORY C minimal or no adverse env and social risks and/or
impacts
Principle 2: Environmental & Social Assessment
SCREENING(
CATEGORY(A((Significant(env(and(
social(risks)(
ESIA(
SPECIALIST(STUDIES((HUMAN(RIGHT(DUE(
DILLIGENCE)((
CATEGORY(B((limited(adverse(env(and(social(risks)(
ESIA(
SPECIALIST(STUDIES(
CATEGORY(C((minimal/no(adverse)(
LIMITED(ENVIRONMENTAL(
ASSESSMENT((AUDIT)(
Environmental and Social Assessment Required
Project Category (as per screening)
• The Assessment process should address compliance with relevant country laws, regulaMons and permits;
• Projects in Designated Countries should comply with relevant country laws and regulaMons commensurate to Equator Principles 2, 4, 5 and 6;
• Projects located in Non-‐Designated Countries should comply with IFC Performance Standards & World Bank Group EHS Guidelines
Principle 3: Applicable Environmental and Social Standards (1)
Principle 3: Applicable Environmental and Social Standards (2)
Others which might be used by EPFIs in non designated countries: • World Bank Safeguard Policies • World Bank Group EHS Guidelines • ILO Core Labor Standards • EU Environmental LegislaMon • World Commission on Dams • EA and Involuntary Reseklement Sourcebooks • Pest Management Guidebook • Regulatory Framework for Dam Safety • PolluMon PrevenMon Abatement Handbook • OPCS Guidance Notes
Principle 4: Environmental and Social Management System & Equator Principle AcMon Plan
Category A & B Projects client develops Environmental and Social Management System (ESMS) detailing a systemaMc way of implemenMng an Environmental and Social Management Plan (ESMP)
Where the applicable standards are not met to the EPFI’s saMsfacMon, the client and the EPFI will agree an Equator Principles AcMon Plan (AP)
Principle 5: Stakeholder Engagement
• Category A and Category B Projects, requires effecMve Stakeholder Engagement
• Stakeholder Engagement should be an ongoing process in a structured and culturally appropriate manner with Affected CommuniMes and Other Stakeholders
• This process should be free from external manipulaMon, interference, coercion and inMmidaMon
Principle 6: Grievance Mechanism
Required for Category A and, as appropriate, Category B Projects, as part of the ESMS
The client will inform the Affected CommuniMes about the mechanism in the course of the Stakeholder Engagement process
Principle 7: Independent Review
• Independent Environmental & Social Consultant shall do independent review for Category A and/or B projects, or projects with high risk impacts
• High risk impacts includes, but not limited to, following:
adverse impacts on indigenous peoples; CriMcal Habitat impacts; significant cultural heritage impacts and large-‐scale reseklement
• Independent Review check compliance to EP, documentaMon to be reviewed include ESMPs, ESMS, and SEP and propose/opine EPAP
Principle 8: Covenants
• All Projects: Client will covenant in the financing documentaMon to comply with relevant host country environmental & social laws & regulaMons
• Category A & B Projects: Client will covenant the financial documentaMon: – to comply with the ESMPs and EPAP during construcMon & operaMon;
– to provide periodic (at least annually) reports; and – to decommission the faciliMes in accordance with decommissioning plan
Principle 9: Independent Monitoring and ReporMng
Category A and/or B Projects, require the appointment of an Independent Environmental and Social Consultant, to verify project’s monitoring informaMon which would be shared with the EPFI
Principle 10: ReporMng Transparency
• Client shall ensure:
– a summary of the ESIA is accessible and available online
– publicly report GHG emission levels (combined Scope 1 and Scope 2 Emissions) during the operaMonal phase for Projects emiong over 100,000 tonnes of CO2 equivalent annually
• EPFI will report publicly, at least annually, on transacMons that have reached Financial Close and on its Equator Principles implementaMon processes and experience.
What Tansheq Offers
• E&S due diligence for Project Lenders; • ESIA/ESMP for Project proponents; • Lenders’ Environmental and Social Advisor reviewing the
Project ESIA, ESMP, management system and loan covenants
• EHS management systems for Projects on behalf of Project proponents
• Training on EP and IFC PSs • Monitoring implementaMon of ESMP and compliance with
loan covenants
Contacts
Lusako Raphael Plot No. 83, Wakulima Road, Hananasif Estate
P. O. Box 31517, Dar es Salaam. Tel: +255713695552/+255684884665;
E-‐mail: [email protected]; Website: www.tansheq.com