Environmental and Social Management Framework(Draft)

for

Ethiopian Sustainable Tourism Development Project

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

G

Ministry of Culture and TourismFederal Democratic Republic of Ethiopia

THE FEDERAL REPUBLIC OF ETHIOPIA

Ministry of Culture and Tourism

Ethiopia - Sustainable Tourism Development Project- (ESTDP)

Environmental and Social Management Framework

March 11, 2009

E2095

ContentsList of acronyms.........................................................................................................................3Executive Summary...................................................................................................................41. Introduction........................................................................................................................72. Environmental and social attributes of tourism areas in Ethiopia........................................103. Description of ESTDP’s areas of influence.....................................................................124. Description of Ethiopia’s policies, legislations and legal regulatory frameworks...........135. Administrative arrangements (roles and responsibilities) to implement environmental policies and laws......................................................................................................................206. The World Bank Safeguard Policies................................................................................257. Methods and Techniques used in Assessing and Analyzing the Impacts........................288. Description of the Project.................................................................................................299. Potential Social and Environmental Impacts of ESTDP Project......................................3310. Potential environmental and social mitigation measures..............................................3611. Purpose of the ESMF....................................................................................................3712. Monitoring of ESMF Implementation..........................................................................4013. Capacity Building and Training for Environmental Management................................4014. Recommendations........................................................................................................42Annex 1: Environmental and Social Management Paln (ESMP) for mitigating potential environmental and social problems of ESTDP during implementation...................................46Annex 2: Proposed environmental and social screening form ................................................48Annex 3: Environmental and Social Checklist........................................................................56Annex 4: Environmental Guidelines for Contractors...............................................................57Annex 5: Terms of Reference for Environmental Impact Assessment....................................66Annex 6: Summary of the World Bank’s Safeguard Policies..................................................71Annex 7: List of individuals/institutions contacted..................................................................75Annex 8: Key References.........................................................................................................76

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List of acronyms

EPA Environmental Protection Authority

ESMF Environmental and Social Management Framework

ESMP Environmental and Social Management Plan

ESTDP Ethiopian Sustainable Tourism Development Project

GOE Government of Ethiopia

OP Operational Policy

PCU Project Coordination Unit

RPF Resettlement Policy Framework

TESFA Tourism in Ethiopia Sustainable Future Alternatives

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Executive Summary

1. Recognizing the importance of the tourism industry for Ethiopia, the Ministry of Culture and Tourism, in collaboration with the World Bank, is determined to implement measures and operations to develop and support tourism. These measures shall be implemented at all levels, from the identification of the tourist destination areas to the marketing and promotion stage.

2. The objective is to support the country’s efforts to derive maximum benefit from national, regional and international tourism in view of tourism's impact on economic development and to stimulate private financial flows from the community and other sources into the development of tourism in the country. Particular attention is given to the need to integrate tourism into the social, cultural, environmental and economic life of the people.

3. In line with the above objective, the general purpose of the Ethiopia - Sustainable Tourism Development Project (ESTDP) is to enhance the quality and variety of tourism products and services in targeted destinations so as to increase tourist flows, incomes and jobs. The project is designed to support infrastructure investments and service improvements in Lalibela, Axum and Addis Ababa. Some of the proposed activities may cause some level of environmental and social adversities at the proposed destination sites.

4. It is the World Bank’s requirement to evaluate the potential adverse environmental and social impacts of all development projects that it considers to finance, and to carry out the appropriate level of environmental work consistent with OP 4.01 Environmental Assessment. As regards the ESTDP, the development of an Environmental and Social Management Framework (ESMF) is required because the actual locations and potential localized adverse environmental and social impacts of future investments could not be determined prior to the appraisal of the ESTDP.

5. The ESMF mainly is an environmental and social screening process that guides future project implementers in the identification, assessment, mitigation and monitoring of potential adverse environmental and social impacts at the planning state of a development project. To facilitate the screening process, the ESMF describes the steps 1-7 of the proposed screening process, and includes, among others, an Environmental and Social Screening Form (ESSF); Environmental Guidelines for Contractors; an Environmental and Social Checklist; a summary of the Bank’s Safeguard Policies, and an Environmental and Social Management Plan (ESMP).

6. In the process of developing the ESMF, the consultants carried out policy analyses and visited potential investment sites to make direct observations and consult stakeholders. The analysis of Ethiopian policies showed that recent policies, proclamations and conventions are important stepping-stones for the improvement of the environment.

7. In addition, observance of the World Bank’s Safeguard policies created an opportunity to bridge the gap between the Bank’s OP 4.01 which requires the screening for potential adverse environmental and social impacts of all proposed investments, and Ethiopia’s environmental policies which do not require environmental and social screening of small-scale investments. Therefore, to ensure that future investments under ESTDP are compliant with the Bank’s

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safeguard policies as well as Ethiopia’s relevant environmental legislation, the borrower has prepared the ESMF and will implement its provisions as appropriate.

8. The site visits helped to gather information useful to determine potential environmental and social adversities that may result due to the implementation of the ESTDP. The most important potential environmental impacts that were identified include soil erosion, loss of vegetation, noise pollution, dust pollution, and water pollution, thus triggering OP 4.01 Environmental Assessment. The potential negative social impacts include resettlement of a portion of the local inhabitants and some form of loss of livelihood, thus triggering OP 4.12 Involuntary Resettlement. Given that the ESTDP intends to improve cultural heritage sites, the project also triggered OP 4.11 Physical Cultural Resources. OP 7.50 Projects on International Waterways is not triggered by ESTDP because the planned investments will be made either in existing water supply systems or will be covered by an earlier notification process for water sector investments.

9. To help minimize or eliminate potential negative environmental and social impacts of the project, an environmental and social screening process is developed and provided in the ESMF. An Environmental and Social Screening Form (ESSF) has been developed to collect relevant site specific information and to recommend the appropriate level of environmental work based on the screening results for a given future investment. The ESSF is central to the screening process outlined in the ESMF and assisting in the decision making process. Based on the screening results, qualified personnel will assign the appropriate environmental category (A, B, C, FI) as per OP 4.01. The information gathered through the use of the ESSF must be evaluated by relevant authorities to determine which impact category best fits a given project activity in compliance with the Bank’s safeguard policies. This will ensure the project is implemented in accordance with the requirements of the World Bank as well as Ethiopia’s environmental policies and legislation.

10. The technical and management capacity to implement the provisions of the ESMF are weak at the local level. Qualified staff in environmental management is very limited even at the Federal and Regional levels. Therefore, availability of qualified and well-trained personnel is crucial to effective implementation of the ESMF for ESTD Project. Training is needed particularly for regional and local staff working in Tourism Development and Environmental Management sectors as well as for local government leaders and decision makers. The ESMF includes an environmental training program for relevant stakeholders with a focus on the need to analyze potentially adverse environmental and social impacts, to prescribe mitigation approaches and measures, and to prepare and supervise the implementation of management plans. This training should address such matters as community participation needs and methods; environmental analysis; with the use of environmental screening and other checklist, reporting; and subproject supervision and monitoring as well as the implementation of the environmental and social screening process outlined in the ESMF.

11. It is recommended that

(a) The environmental training program is implemented prior to the commencement of the ESTDP activities to ensure that the relevant stakeholders are capable of implementing the environmental and social screening process outlined in the ESMF;

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(b) ESTDP coordinates its support for the provision of water supply and sanitation with the relevant municipalities and Regional Water Bureaus;

(c) ESTDP attaches the Environmental Guidelines for Contractors to the bidding documents to ensure the application of environmentally and socially sustainable construction techniques.

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1. Introduction

1.1 Recognizing the importance of the tourism industry for Ethiopia, the Ministry of Culture and Tourism, in collaboration with the World Bank, is determined to implement measures and operations to develop and support tourism. These measures shall be implemented at all levels, from the identification of the tourist destination areas to the marketing and promotion stage.

1.2 The aim is to support the country’s efforts to derive maximum benefits from national, regional and international tourism in view of tourism's impact on economic development and to stimulate private financial flows from the community and other sources into the development of tourism in the country. Particular attention is given to the need to integrate tourism into the social, cultural, environmental and economic life of the people.

1.3 Specific tourism development measures shall aim at the definition, adaptation and development of appropriate policies at national, regional, and local levels. The national level policy development is already at the draft stage. Tourism development programs and projects shall be based on this policy. In this context, ESTDP will lay the ground for future developments in the tourism sector.

1.4 Tourism development requires among others working on the following four components:

(a) Human resources and institutional development: o professional management development in specific skills and continuous training at

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

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

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

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

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

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

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

o provision of technical assistance for the hotel industry; o production of crafts of a cultural nature for the tourist market.

(c) Market development: o assistance for the definition and execution of objectives and market development plans at

national, sub-regional, regional and international levels;

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o provision of support to gain access to services for the tourist industry such as central reservation systems and air traffic control and security systems;

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

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

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

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

1.5 In line with such standard strategy, the Ministry of Culture and Tourism and the World Bank designed the Ethiopian Sustainable Tourism Development Project (ESTDP) targeting Lalibela, Axum and Addis Ababa. The general aim of the project is to enhance the tourism business generally in Ethiopia and the specific destination areas by investing on conservation of key resources and improvement/rehabilitation of service provision facilities. Achieving these targets is impossible with out causing some environmental and social negative changes.

1.6 To make the developmental outcomes of the project optimal and sustainable, an impact minimization mechanism and tool to assess the potential localized adverse environmental and social impacts of future investments must be in place before the implementation of the project. Towards this end, the Environmental and Social Management Framework (ESMF) has been prepared. The ESMF outlines an environmental and social screening process for future infrastructure investments to ensure that they are environmentally and socially sustainable and meet the requirements of the Bank’s safeguard policies.

1.7 The rationale for preparing the ESMF is that (i) the actual locations and potential localized adverse environmental and social impacts of future investments could not be determined prior to the appraisal of the ESTDP; and (ii) the Bank’s OP 4.01 requires the screening for potential adverse environmental and social impacts of all investments considered for Bank financing and carrying out of the appropriate level of environmental work based on the screening results – whereas Ethiopia’s environmental assessment procedure does not require the environmental and social screening of small-scale investments with unknown locations.

1.8 The most important outcome of this mission was the development of environmental and social screening process that will be used in the future by implementers of the sub-components of the ESTDP. This primarily requires determining the specific sub-components of the project and sub-projects that may potentially have adverse environmental and social impacts. The categories provided in the Bank’s OP 4.01 provide a framework for filtering anticipated project activities relative to attributes of sites that qualify as environmental and social issues of concern as per the Bank’s standards.

1.9 The first component of the project that aims to enhance the contribution of the tourism sector in Ethiopia through identification, conservation and improvements of tourist sites is

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identified as the most important project subcomponent with activity requirements that may potentially have environmental and social adverse impacts.

1.10 The Ethiopian Government must be appreciated highly for enthusiastically perusing this tourism enhancement project that has made the concepts of conservation and proper management of the tourism resource base the center of the whole initiative. It is also very important to note that the explicit use of the country’s cultural/historical heritages and biophysical resources for the purposes of strengthening the budding private sector, creation of jobs and alleviation of poverty would have a country wide impact on the populace regarding the value of nature and the astounding physical structures built by the country’s ancestor’s. It is also highly commendable that the project intends to establish indigenous woodlots in and around the church sites in Lalibela. Without question, if appropriately implemented, the project will improve substantially the conservation and appropriate use of resources of tourist attraction in the country. When the potential environmental and social adverse impacts of this project are evaluated in this document, it is with full awareness of its positive conservation and economic contributions.

1.11 Despite being a very good initiative that must be implemented, it also has the potential to affect the environment and society negatively. The consultants assessed the potential problems in the field to generate information useful to flag the most important environmental and social impacts as objectively as possible. It must also be noted that an environmentally and socially responsible project must set the example to other development initiatives that frequently have serious negative impacts on the very resources that makeup the foundation of its business/economic initiatives.

1.12 The ESMF that the consultants were expected to develop not only identified the likely issues of concern, but also produced an environmental and social screening process that will be used to mitigate the undesirable effects of the project up on implementation. It is at the stage of planning of project subcomponents that detailed, quantified environmental and social data are prepared both for the purposes of impact assessment and prevention. Thus, the consultants were content with the short field time assigned to them on a single working day per site basis. They have tried to collect environmental and social information as much as possible, and the synthesis produced a watertight procedure that will enable implementers to avoid the potential environmental and social impacts of the project.

1.13 Although the project sites are Lalibela, Axum and Addis Ababa, the consultants visited Lalibela, Axum, Awash and Abjata Shala National Parks with the intention of producing a document that would have value for mitigation of potential negative impacts of the ESTDP. From the discussions the consultants held with key informants, some of the project planning team (including consultation of their draft reports) and our first hand site evaluation revealed a list of constraints that the project must tackle to deliver the goods and services anticipated/expected in its overall integrated development destination tourism plan.

1.14 The assessment generally identified the following constraints, which must be positively changed to enhance the contribution of the tourism sector to the economy at all scales:

o Lack/shortage of international standard accommodations and may be some ‘modern’ communal facilities

o Lack/poor condition of roadso Poor condition of cultural/religious heritages.

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1.15 A process of removing these constraints will cause various types of environmental and social adversities. The consultants’ task has been to identify the causes of problems and anticipate the potential negative impacts that must be mitigated in the process of project implementation. There is no better argument for better environmental management than the enduring wondrous relics of Ethiopia’s past civilizations that undoubtedly collapsed as result of environmental crisis leaving us our current most important tourism attractions. Thus, it is to make the long-term contributions of the ESTDP sustainable, profitable and just that the consultants examined potential adverse environmental and social impacts and proposed mitigation measures.

2. Environmental and social attributes of tourism areas in Ethiopia

2.1 Natural habitats: The consultants’ definition of a natural habitat refers to any form of environmental component that constitutes life forms that are naturally interacting amongst themselves and their physical environment (Krebs 2001). Within the confines of this definition we recognized the following habitat types as existing across the proposed investment areas of the ESTDP.

2.1.2 Dry evergreen montane forest. This is a forest type that is found in the highlands of Ethiopia. It is dominated by tree species such as Juniperus procera and Olea africana. At Lalibela, particularly at Yimrhane Kiristos, this consultancy mission determined the existence of an intact forest in this category with species such as Acacia abyssinica that is disappearing in many of the highland forest areas across the country. The Yimrhane Kiristos forest and other similar habitats in Ethiopia provide homes to several endemic mammals and birds some of which are globally threatened. These habitat generally is highly threatened throughout the country mainly as result of the value of the defining tree species for construction and fuel purposes. In some of the tourist sites, such habitats enjoy some level of legal protection, but in others their survival mainly is result of the Christian belief that considers wooded yards of monasteries and churches as scared reflections of Adam’s and Eve’s Eden. It is because of such traditions cultivated and preserved by the Ethiopian Orthodox church that some highly valuable patches survived even in highly degraded urban sites. Such habitats have huge international importance for the conservation of global biodiversity (Williams et al. 2004) and bird conservation (EWNHS 1996, Fishpool et al. 2001). Almost invariably, such sites are sources of several streams and rivers that cross sometimes very long distances.

2.1.3 Such ecosystems are made of many organisms that are interacting in a resource-consumer system affecting the surrounding physical (organic and inorganic) environment forming what is infrequently but appropriately described as nature’s economy (Tilman et al. 2005). As result of mainly their function in the environment, species interact competitively with structural consequences that is mainly manifested as biodiversity which is the number of species of a given group that co-occur at a given location and time. Studies that evaluated the economic values of landscapes showed that productivity increased significantly with increases in species diversity (Tilman et al. 2005). The natural environment that operates in this manner provides many values and goods besides those gains generated through direct harvesting of the biological and other components (Tilman et al. 2005, de Groot 2005). Examples of ecosystem services range from availability of clean potable water, to

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productivity of soil, and the regulation or modification of climate. In addition to this, revenue generation through tourism as result of presence of natural attractions is one of the modern non-consumptive phenomena that resulted from good landscape conservation and management schemes around the world. In this regard, Ethiopia is by no means an exception.

2.1.4 As described in the previous section, some parts of the proposed investment areas are endowed with diverse ecosystems with large number of plant and animal species that are responsible for the maintenance of human life since time immemorial. Although nature based tourism in the country may not be a very recent economic event, in the past 17 years it demonstrably grew, generating a significant amount of hard currency for the country.

2.1.5 Recognizing the benefits of its biophysical resources, the Ethiopian government and its partners have been implementing conservation and management initiatives at various ecological scales across the country. Despite such commendable efforts, there exist nationwide serious constraints that result in loss of biological constituents and the associated quality of the environment. The country’s economy is growing with tangible promises to make most of the countries economic problems history. However, development at any sector cannot be realized without damaging highly valuable environmental attributes that may cost much more than the benefits gained both in the long and short-term considerations. Tourism is one of the most important sectors of the country’s economy that is growing, although not as much as it potentially can, considering the richness of the countries many attractions. If this potential is fully exploited, the realized growth may turn out to be much higher than what it currently is and requires a new investment to build new infrastructure and services and to reinvigorate the existing ones. It is highly likely that most of this is going to happen at the ‘traditional’ tourist destinations that are mainly known for their cultural/historical attractions. By no means can it be argued that the cultural/historical attractions are exploited to their full potential in increasing the number of tourists and time that they spend at a given site. These are the two main factors that increase the amount of revenue generated per tourist in a given country.

2.1.6 At some of such traditional sites such as Lalibela, recent innovative initiatives, by an NGO called TESFA, have refocused the direction of the tourism market by successfully exploiting the unparalleled beauty of the surrounding landscape and the unique wildlife, particularly birds. Considering this has been a very recent phenomenon and towns at tourist sites emerged from little villages, it is very easy to imagine that so much of high economic value was lost without any body noticing. This is not to mean that what remains is little and thus has no value. As was mentioned earlier, some very innovative initiatives demonstrated that even under its battered condition, nature in Ethiopia has immense potential to attract tourists and most importantly to use the revenue generated to alleviate poverty locally. This and other ecosystem provisions that are vital for human survival necessitate cautious undertaking of further infrastructure and service developments within and around tourism sites.

2.2 Socio-economic aspects: The sites of interest are occupied by Ethiopians drawn from different ethnic groups. Lalibela and Axum are inhabited by the main Semetic ethnic groups comprising mainly the Amhara and Tigre.

2.2.1 Means of livelihood include agriculture, livestock rearing and small to medium mercantile businesses. Most of the residents of the sites could be considered poor that depend on subsistence means of agriculture and livestock rearing. In towns although one may not

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encounter the very rich, there are all types of income categories between the poorest and the middle income households.

2.2.2 The residents of the sites mainly are Orthodox Christians. These Northern Christians practice ancient culture of the Ethiopian Orthodox Church in their daily worship procedures and during special annual celebrations like Ethiopian Christmas, Epiphany and Meskel. Traditional open markets are also very colorful events that serve as living displays of the indigenous culture.

2.3 Physical cultural resources across the tourism route

2.3.1 Due to their cultural/historical attractions, resources at Lalibela and Axum are considered as one of the eight wonders of the world. Many sites have qualified as World Heritage Sites fulfilling the standards of the UNESCO. Some of the structures, particularly in the north are considered as having political significance at the time of building to remind viewers of the timelessness of the greatness of the accomplishments of the individuals to whom they are dedicated. There are also structures built to capture the central meaning of Orthodox Christianity still magnificently serving the same purpose. Others are just parts of an ancient city continuing to give the same services that they were originally built for.

3. Description of ESTDP’s areas of influence

3.1 Areas of influence that may be affected as the project is implemented cover both environmental and socio-economic issues. The following is their description:

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

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3.1.2 Another potential source of negative influence to a larger water shade such as the one Lalibela and its environs are part may come from a likely periodic/continuous discharge of liquid and other organic human waste from communal latrine facilities in to the surrounding rivers that carry any potential risk to places that are found long distance away from a discharge point. There is no argument regarding the need for such essential service provision structures both for international visitors and local pilgrims, but the mechanism that relives them off the waste that they temporarily store must make sure that the negative impact on the immediate site environment and the general water shade area is at its minimum. Therefore, an alternative low impact means of waste disposal must be applied which significantly reduces the described negative influences and strictly forbids contamination/pollution of ground water and other natural systems in the immediate site environment.

3.1.3 Construction/rehabilitation of roads may result in partial/total loss of land and livelihood to some residents along construction/rehabilitation routes. Some level of loss of habitat and disturbance to wildlife may also be expected. Prior to construction detailed social and ecological surveys must be conducted to asses the potential impact at planned routes with objective of minimizing the adverse impacts.

3.1.4 Off-site resettlement areas: In many of the sites, it is unavoidable to affect farms when people removed from a tourist site are relocated. In such instances, farmers must be compensated appropriately and a new land or other means of livelihood with comparable benefits must be provided. Towards this end, the provisions of the Resettlement Policy Framework (RPF) will be implemented as appropriate.

4. Description of Ethiopia’s policies, legislations and legal regulatory frameworks

4.1 Environmental issue in Ethiopia became the government's agenda following the UN Conference on Environment and Development (UNCED or the Earth Summit) that was held in June 1992 in Rio de Janeiro, Brazil. In order to address the environmental problems and heading towards achieving sustainable development, the mechanism of environmental protection adopted by Ethiopia since 1992 could be characterized by a three-stage approach.

4.2 ` The Constitution of Ethiopia (1994): The first stage is marked by incorporation of environmental issues into the supreme law of the country. The 1994 Constitution of Ethiopia under Articles 43, 44 and 92 proclaims the following:

In Article 43: The Right to Development, where peoples' right to: o improved living standards and to sustainable development,o participate in national development and, in particular, to be consulted with respect to

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

boldly recognized.

Similarly, in article 44: Environmental Rights, all citizens are entitled to:

o live in a clean and healthy environment,

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o Compensation, including relocation with adequate state assistance.o Moreover, in article 92: Environmental objectives it is declared that,o Government shall endeavor to ensure that all Ethiopians live in a clean and healthy

environmento The design and implementation of programs and projects of development shall not

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

and implementation of environmental policies and projects that affect them directly.o Government and citizens shall have a duty to protect the environment.

The incorporation of these important provisions into the supreme law of the country uplifted environmental concerns to the level of fundamental human rights.

4.3 Environmental Policy of Ethiopia: The second stage was the formulation of a national policy on environmental management and protection. With a view to further amplifying the Constitutional provisions on environmental protection, the Environmental Policy and the Conservation Strategy of Ethiopia have been prepared. These policy and strategy documents recognized and addressed environmental issues in a more or less holistic manner, and were adopted as well as approved on 2nd April 1997.

4.4 Other National Policies Relevant to the Environment include:

o Agricultural Development Led Industrializationo Economic Policy During Transitiono Federal Water Resources Policyo Federal Energy Policyo Draft Industrial Environmental Policy and Strategyo Industrial Sector Strategyo Urban policy of Ethiopia

4.5 Incorporation of environmental rights under the Constitution, adoption of Environmental Policy and the Conservation Strategy of Ethiopia, ratification of multilateral environmental Conventions, establishment of the Environmental Protection Authority are some of the basic moves towards heading for environmental protection and sustainable development in Ethiopia.

4.6 The overall Environmental policy goal: The overall Ethiopian Environmental Policy Goal is to improve and enhance the health and quality of life of all citizens and to promote sustainable social and economic development through the sound management and use of natural, human-made and cultural resources and the environment as a whole so as to meet the needs of the present generation without compromising the ability of future generations to meet their own needs. Under the rubric of this overall policy goal, it has specific policy objectives including the improvement of the environment of human settlements, prevention of pollution of land, water and air, the improvement of the cultural and natural heritage of the country, to ensure empowerment and participation of the society in environmental management, the need for environmental education and environmental impact assessment.

4.7 Objective of Environmental Policy: The Policy seeks to:

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

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

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

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

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

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

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

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

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

4.7.1 The Policy is divided into 10 sectoral and 10 cross-sectoral issues.

4.8 Environmental protection laws: Policies are of a framework nature and thus they cannot implement themselves. They need the formulation and implementation of laws, standards and guidelines as well as institutional arrangement. Therefore, the third stage marks the formulation of environmental protection laws so as to reach the objectives fixed by the Constitution and the Environmental Policy as well as the Conservation Strategy of Ethiopia and the environmental Conventions to which Ethiopia is a party.

4.8.1 Federal Environmental Protection Laws include:

o Environnemental Protection Organs Establishment Proclamation (Proclamation No. 295/2002),

o Environnemental Impact Assessment Proclamation (Proclamation No. 299/2002), o Environnemental Pollution Control Proclamation (Proclamation No. 300/2002),o Solid waste management proclamationo Draft Industrial Pollution Prevention and Control Regulation, o Draft Industrial Environmental Policy and Strategy, o Industrial Sector Strategy,o Proclamation 2/01/1981 for the control of air pollutiono Proclamation 217/1981 for the control of water pollution

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o Proclamation 94/1994 legislation on Forest Conservation o Legal Notice No. 445 of 1970 on Wildlife Conservationo Special Decree No.20/1990 on Pesticide Controlo Proclamation No. 137/1998 on Pesticide controlo Plant Quarantine Council of Minister’s Regulation 4/1992o Proclamation No. 52/1993 Mining Proclamationo Regulation No.182/1994 Law on Mining and energy operations

4.8.2 Only those laws which have direct significance to environmental protection are discussed here.

4.9 Proclamation on the establishment of environmental protection organs

The main aim of the law is to establish a system that fosters coordinated but differentiated responsibilities among environmental protection agencies at federal and regional levels so as to foster sustainable use of environmental resources, thereby avoiding possible conflicts of interests and duplication of efforts.

4.10 Environmental impact assessment proclamation

Environmental impact assessment is used to predict and manage the environmental effects that a proposed development activity might entail and thus helps to bring about intended development. Furthermore, assessment of possible impacts on the environment prior to the approval of a public instrument is recognized as providing an effective means of harmonizing and integrating environmental, economic, cultural and social considerations into a decision making process in a manner that promotes sustainable development. To this end the law is prepared to facilitate the implementation of the environmental rights and objectives provided by the Constitution and the maximization of their socio-economic benefits by predicting and managing the environmental effects which a proposed development activity or public instruments might entail prior to their implementation.

4.11 Environmental pollution control proclamation

The law recognizes the fact that some social and economic development endeavors may inflict environmental harm that could make the endeavors counter-productive. It also underlines the fact that the protections of the environment, in general, and the safeguarding of human health and wellbeing, as well as the maintaining of the biota and the aesthetic value of nature, in particular, are the duty and responsibility of all. To this end the law aims to eliminate or, when not possible, to mitigate pollution as an undesirable consequence of social and economic development activities.

4.12 Solid Waste Management Proclamation

The objective of this proclamation is to enhance at all levels capacities to prevent the possible adverse impacts while creating economically and socially beneficial assets out of solid waste. Some of the important provisions include:

1. General obligations of Urban Administrations

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o Urban administrations shall create enabling conditions to promote investment on the provision of sold waste management services.

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

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

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

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

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

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

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

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

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

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

4.13.1 There are a number of international treaties and agreements on a range of environmental and natural resource issues (e.g. ozone depletion, global warming, pollution of international waters, marine environmental protection, transport of hazardous wastes and biodiversity). It requires these treaties and agreements to be considered in environmental analyses, where relevant and feasible, with a view to minimizing possible adverse impacts on global environmental quality.

4.13.2 Ethiopia has adopted and ratified several international conventions and agreements related to the environment. The major ones are:

4.13.3 Convention on Biological Diversity

The Convention on Biological Diversity has three goals: (i) the conservation of biodiversity; (ii) the sustainable use of the components of biodiversity; and (iii) the fair and equitable sharing of the benefits arising from the use of genetic resources. The Convention was ratified by Ethiopia by Proclamation 98/94, on May 31, 1994.

4.13.4 Various activities are being carried out towards the implementation of this convention. The following are some of the exemplary activities:

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

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

4.14 The United Nations Convention to Combat Desertification (UNCCD)

4.14.1 The objective of the Convention is to combat desertification and mitigate the effects of droughts in countries experiencing serious drought and/or desertification, particularly in Africa. Ethiopia has ratified the Convention by Proclamation No. 80/1997.

4.14.2 To implement the Convention the following activities are being carried out with the coordination of the Environmental Protection Authority. The following are some of the activities that have been and are being carried out:

o Completion of the drafting of a national programme for combating and controlling desertification;

o Providing some capacity building support and implementing awareness raising programmes in the regions;

o Preparation by some of the regions of regional programmes for combating and controlling desertification.

o Using participatory approaches, pilot projects designed to demonstrate for communities how degraded land can be rehabilitated are underway in four regions.

o The drafting of a gender strategy designed to facilitate the incorporation of gender issues into the programme for combating desertification is in the process of preparation.

o A draft document with respect to the establishment of a fund for combating desertification has been finalized.

4.15 The Vienna Convention for the Protection of the Ozone Layer

4.15.1 The basic objective of the Convention is to combat the negative impact on the environment and human beings resulting from ozone depleting substances by reducing the amounts released and eventually banning their commercial use through internationally agreed measures. The Montreal Protocol entered into force in 1989 to facilitate the implementation of the Convention.

4.15.2 Ethiopia has ratified and became party to the Vienna Convention and the Montreal Protocol in January 1996. The National Meteorological Services Agency has been mandated for the coordination and supervision of implementation of this convention in Ethiopia. The following activities have so far been conducted towards implementing this convention:

o A programme for controlling ozone-depleting substances in Ethiopia is in place.o A National Ozone Team has been established under the auspices of the National

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

CFC-based refrigerators have been developed;

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o A draft legislation for the control substances that deplete the ozone layer has been prepared; and

o Training on awareness creation has been conducted.

4.16 United Nations Framework Convention on Climate Change (UNFCCC)

4.16.1 Ethiopia has ratified this Convention by Proclamation No. 97/1994 on May 2/1994. This convention takes into account the fact that climate change has transboundary impacts. The basic objective of this Convention is to provide for agreed limits regarding the release of greenhouse gases into the atmosphere and to prevent the occurrence or minimizes the impact of climate change.

4.16.2 The following major activities have been undertaken to implement the Convention at national level:

o Within the National Meteorological Services Agency, a Climate Change and Air Pollution Research Team has been established;

o Major sources of greenhouse gases in the country have been registered. A preliminary research has also been conducted to verify the effect of climatic change on the water flow of the Awash River as well as on wheat production and forest resources;

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

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

4.17 The Basel Convention

4.17.1 The objective of the Basel Convention is to control and regulate the transboundary movement of hazardous waste. The Bamako Convention of 1991 plays a similar role at the level of the African continent. Ethiopia has ratified the Convention by Proclamation No. 192/2000.

4.17.2 At present measures designed to amend the Basel Protocol is in progress. In addition, activities related to prior informed consent are being carried out. Furthermore, to implement the Convention within the country, draft policies and legislation have been prepared and submitted to the government.

4.18 The Stockholm Convention

In the year 2002, Ethiopia fully accepted and ratified the Stockholm Convention designed to ban the use of persistent organic pollutants (POPS). The Environmental Protection Authority has the full mandate to implement the Convention at the national level. A project to develop an appropriate system for the realization of the objectives of the Convention in Ethiopia is in progress.

4.19 The Rotterdam Convention

This Convention relates to prior informed consent in the context of international trade in specific hazardous chemicals and pesticides. The Environmental Authority is the organ

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responsible for the domestic implementation of this convention, which has been ratified by Ethiopia in 2003. The Environmental Protection Authority is preparing a framework for its implementation.

4.20 International Convention on Trade in Endangered Species, Fauna and Flora

4.20.1 The objectives of the Convention are (i) to control international trade in endangered species and (ii) to ensure that international trade in non-endangered species is carried out in a manner which ensures stable markets and economic benefits for the exporting countries as well as to control and regulate illegal trade in such non-endangered species, fossils and/or their derivatives.

4.20.2 Ethiopia has ratified the Convention. The mandate to implement the Convention at the Federal level is bestowed upon the Ethiopian Wildlife Protection and Development Organization.

4.21 An analysis shows that recent policies, proclamations and conventions such as Environmental Protection Organs Establishment Proclamation (Proclamation No. 295/2002), Environmental Impact Assessment Proclamation (Proclamation No. 299/2002), Environmental Pollution Control Proclamation (Proclamation No. 300/2002), Draft Industrial Pollution Prevention and Control Regulation, Draft Industrial Environmental Policy and Strategy, Industrial Sector Strategy, together with Environmental Policy of Ethiopia and international conventions are important stepping-stones for the improvement of the environment in Ethiopia.

5. Administrative arrangements (roles and responsibilities) to implement environmental policies and laws

5.1 The administrative arrangements and the major role players in implementing environmental policies particularly an EIA process are the following:

o Competent agencyo Proponento Consultanto Interested and affected parties (IAPs)o Licensing Agency

5.2 The multitude of division of functions and variability of responsibilities inherent in the EA process calls for the clear definition and spelling out of roles and tasks of different stakeholders. Therefore, defining the roles and responsibilities of each party would enable to harmonize the various interests and foster cooperation in a manner that averts duplication of efforts and promote efficiency. Potentially, EA involves all members of society. For convenience and, above all in recognition of the common but differentiated roles each may manifest, the different actors are categorized in to the following five major groups:

5.3 Environmental Agency

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5.3.1 An Environmental Agency is either EPA or Regional Environmental Body that are mandated by a proclamation provided for the establishment of Environmental Protection Organs (Proc. no.295/2002) and Environmental Impact Assessment Proclamation (Proc.no.299/2002) and other relevant laws to oversee and facilitate the implementation or administration of EA.

5.3.2 An Environmental Agency has responsibility to make sure that:

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

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

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

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

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

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

relevant laws and in a manner that improve effectiveness and efficiency, o appropriate support is made available to build capacity and create awareness on EA, etc.

5.3.3 EPA as a Federal Environmental Agency is responsible for:

o the establishment of a required system for EA of public and private sector projects, as well as social and economic development policies, strategies, laws, and programs of federal level functions;

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

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

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

institutions and the proponents, o making its decisions and the EA report available to the public,o resolving all complaints and grievances in good faith and at the appropriate time,o develop incentive or disincentive structures o involve in EA awareness creation,

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5.3.4 Regional Environmental Agencies

5.3.4.1 In the Environmental Impact Assessment Process the regional environmental agencies or their equivalent Competent Authority are responsible to:

o adopt and interpret federal level EA policies and systems or requirements in line with their respective local realities,

o establish a system for EA of public and private projects, as well as social and economic development policies, strategies, laws, or programs of regional level functions;

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

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

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

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

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

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

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

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

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

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

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

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

5.4 Proponent

5.4.1 A proponent is any person or organization that initiates a project, policy or program. The proponent is responsible for complying with the requirements of the EIA process. The first responsibility of the proponent, however, is to appoint an independent consultant who will act on the proponent’s behalf in the EIA process. The proponent should ensure that the consultant has:

o Expertise in environmental assessment and management.

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o The ability to manage the required participation processo The ability to produce reports that are readable, comprehensive and informativeo A good working knowledge of environmental impact assessment and management

policies, legislation, guidelines and standards.

5.4.2 The proponent may appoint an individual consultant or a multi-disciplinary group of consultants. The proponent is responsible for all associated costs incurred when following the EIA process. The proponent must ensure that adequate participation of the competent agency and interested and affected parties has been carried out. The proponent is also responsible for public consultation. On Completion of the EIA, it will be the proponent’s responsibility to ensure that the conditions of approval are carried out (including monitoring and auditing).

5.4.3 A proponent is required to:

o proactively integrate an environmental concerns into its social and economic development project, program, policy, plan or strategic initiative as per the requirements of relevant environmental laws and directives,

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

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

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

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

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

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

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

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

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

interests,o develop standardize environmental management system;o be familiar with the pertinent EA related stipulations, etc.

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5.4.4 Consultant

5.4.4.1 A consultant is an individual or institution that can command the required qualified professional working individual or group that has demonstrated the ability to undertake the EA, and meets the requirements specified under the relevant law. The individual consultant acts on behalf of the proponent in complying to the EIA process and is responsible for all processes, plans and reports produced while following the EIA process and should have adequate access to facilities for storing this information. The consultant should also ensure that all of this information is made available to the competent Agency via the proponent. The consultant must ensure that adequate participation of the Competent Agency and interested and affected parties has been carried through his proponent.

5.4.4.2 The consultant that will be appointed to work on behalf of a proponent is expected to:

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

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

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

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

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

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

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

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

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

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

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

proposed activity, etc.

5.5 Interested and Affected Parties (IAPs)

5.5.1 Interested and Affected Parties (IAPs) are individuals or groups concerned with or affected by the proposed activity or its consequences. These may include local communities, customers and consumers, environmental interest groups and the general public.

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5.5.2 Interested and affected parties are key to a successful EIA and are responsible for providing input and comments at various stages in the EIA process. The input from interested and affected parties should be sought during the scoping phase, in assessing and mitigating impacts and in the review of the EIS. In accepting the responsibility to participate, IAPs should ensure that their inputs and comments are provided within the specified (reasonable) time limit set by the proponent and his/her consultant.

5.5.3 Interested and Affected Parties are expected to:

o provide comments at various stages of EA with reasonable time frame,o work in partnership with Environmental Agencies and proponents, o act and lobby in good faith, knowledge, reason and in a cooperative manner and use all

means and facilities to ensure fairness in EA administration, o follow and monitor changes and inform the environmental and sectoral agencies and local

administration the occurrence of adverse incidence or any other grievance in the course of implementation of a project or public instruments,

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

5.6 Licensing Agency

5.6.1 Licensing Agency is any organ of government empowered by law to issue an investment permit, trade or operating license or work permit or register business organization as a case may be. Licensing agencies are required to:

o ensure that prior to issuing their respective licenses and permits to require proponents to submit authorization, a letter of approval or Environmental Clearance Certificate awarded by the appropriate Environmental Agency,

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

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

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

6. The World Bank Safeguard Policies

6.2 The Bank’s ten Safeguard Policies are discussed below. OP 4.01 Environmental Assessment has been triggered due to the planned rehabilitation and construction of activities at the project sites; OP 4.12 Involuntary Resettlement has been triggered due to the potential for land acquisition to accommodate the planned facilities; and OP 4.11 Physical Cultural Resources has been triggered because the proposed project will improve the quality of the cultural sites to be supported under the proposed project.

6.3 A summary of the Bank’s safeguard policies is provided in Annex 6. This summary provides guidance to future project implementers as to how to design and implement sub-projects in compliance with the Bank’s safeguard policies. It should be noted that in the event that there is a discrepancy between Ethiopia’s resettlement policies and the Bank’s OP 4.12, the provisions of the latter policy apply for the duration of the implementation of ESTDP.

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6.4 OP 7.50 Projects on International Waterways has not been triggered by the ESTDP project because the riparian notification requirements have either already been complied with pursuant to the previous project, or else, are not required for the type and scale of development considered.

OP/BP 4.01 Environmental Assessment

The objective of this policy is to ensure that Bank-financed projects are environmentally sound and sustainable, and that decision-making is improved through appropriate analysis of actions and of their likely environmental impacts. This policy is triggered if a project is likely to have potential (adverse) environmental risks and impacts on its area of influence. OP 4.01 covers impacts on the natural environment (air, water and land); human health and safety; physical cultural resources; and transboundary and global environment concerns.

OP/BP 4.11 Physical Cultural Resources

The objective of this policy is to assist countries to avoid or mitigate adverse impacts of development projects on physical cultural resources. For purposes of this policy, “physical cultural resources” are defined as movable or immovable objects, sites, structures, groups of structures, natural features and landscapes that have archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Physical cultural resources may be located in urban or rural settings, and may be above ground, underground, or underwater. The cultural interest may be at the local, provincial or national level, or within the international community.

OP/BP 4.12 Involuntary Resettlement

The objective of this policy is to (i) avoid or minimize involuntary resettlement where feasible, exploring all viable alternative project designs; (ii) assist displaced persons in improving their former living standards, income earning capacity, and production levels, or at least in restoring them; (iii) encourage community participation in planning and implementing resettlement; and (iv) provide assistance to affected people regardless of the legality of land tenure. In cases where there is a discrepancy between national resettlement legislation and the Bank’s policy on involuntary resettlement, the provisions of the latter – OP 4.12 – apply for the duration of the implementation of ESTDP, superseding national legislation in this regard.

OP 7.50 Projects in International Waters

The objective of this policy is to ensure that Bank-financed projects affecting international waterways would not affect: (i) relations between the Bank and its borrowers and between states (whether members of the Bank or not); and (ii) the efficient utilization and protection of international waterways. The policy applies to the following types of projects: (a) Hydroelectric, irrigation, flood control, navigation, drainage, water and sewerage, industrial and similar projects that involve the use or potential pollution of international waterways; and (b) Detailed design and engineering studies of projects under (a) above, include those carried out by the Bank as executing agency or in any other capacity.

OP/BP 4.04 Natural Habitats

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This policy recognizes that the conservation of natural habitats is essential to safeguard their unique biodiversity and to maintain environmental services and products for human society and for long-term sustainable development. The Bank therefore supports the protection, management, and restoration of natural habitats in its project financing, as well as policy dialogue and economic and sector work. The Bank supports, and expects borrowers to apply, a precautionary approach to natural resource management to ensure opportunities for environmentally sustainable development. Natural habitats are land and water areas where most of the original native plant and animal species are still present. Natural habitats comprise many types of terrestrial, freshwater, coastal, and marine ecosystems. They include areas lightly modified by human activities, but retaining their ecological functions and most native species.

OP/BP 4.36 Forests

The objective of this policy is to assist borrowers to harness the potential of forests to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development and protect the vital local and global environmental services and values of forests. Where forest restoration and plantation development are necessary to meet these objectives, the Bank assists borrowers with forest restoration activities that maintain or enhance biodiversity and ecosystem functionality. The Bank assists borrowers with the establishment of environmentally appropriate, socially beneficial and economically viable forest plantations to help meet growing demands for forest goods and services.

OP 4.09 Pest Management

The objective of this policy is to (i) promote the use of biological or environmental control and reduce reliance on synthetic chemical pesticides; and (ii) strengthen the capacity of the country’s regulatory framework and institutions to promote and support safe, effective and environmentally sound pest management. More specifically, the policy aims to (a) Ascertain that pest management activities in Bank-financed operations are based on integrated approaches and seek to reduce reliance on synthetic chemical pesticides (Integrated Pest Management (IPM) in agricultural projects and Integrated Vector Management (IVM) in public health projects. (b) Ensure that health and environmental hazards associated with pest management, especially the use of pesticides are minimized and can be properly managed by the user. (c) As necessary, support policy reform and institutional capacity development to (i) enhance implementation of IPM-based pest management and (ii) regulate and monitor the distribution and use of pesticides.

OP/BP 4.10 Indigenous Peoples

The objective of this policy is to (i) ensure that the development process fosters full respect for the dignity, human rights, and cultural uniqueness of indigenous peoples; (ii) ensure that adverse effects during the development process are avoided, or if not feasible, ensure that these are minimized, mitigated or compensated; and (iii) ensure that indigenous peoples receive culturally appropriate and gender and intergenerationally inclusive social and economic benefits.

OP/BP 4.37 Safety of Dams

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The objectives of this policy are as follows: For new dams, to ensure that experienced and competent professionals design and supervise construction; the borrower adopts and implements dam safety measures for the dam and associated works. For existing dams, to ensure that any dam that can influence the performance of the project is identified, a dam safety assessment is carried out, and necessary additional dam safety measures and remedial work are implemented.

OP 7.60 Projects in Disputed Areas

The objective of this policy is to ensure that projects in disputed areas are dealt with at the earliest possible stage: (a) so as not to affect relations between the Bank and its member countries; (b) so as not to affect relations between the borrower and neighboring countries; and (c) so as not to prejudice the position of either the Bank or the countries concerned.

7. Methods and Techniques used in Assessing and Analyzing the Impacts

7.1 The World Bank has very clear environmental and social safeguard policies that are used in this report as the guiding principle to determine attributes of the tourism attraction sites that qualify as causes of environmental and social concerns relative to implementation of certain likely actions proposed by the ESTDP.

7.2 The cultural and natural areas were assessed for their physical, biological (excluding humans), socio-economic (where the case of humans was addressed) constituents. Assessment of biological resources involved determining the presence of indigenous natural habitats such as forests and woodlands mainly together with the bird species that inhabit them. In highly urbanized areas, the consultants made records of the presence of good or remnant patches of indigenous woodlands that are important for the health of the environment.

7.3 The consultants have assessed potential investment localities by being accompanied by relevant government officials to determine the potential socio-economic problems that may result from implementation of the project components that aim to improve the current state of mainly cultural attractions. In addition, the consultants had informal discussions with urban and rural residents of potential investment areas to generate information regarding how they use space in their locality for livelihood generation, residence and cultural purposes. This generated sufficient information to evaluate the potential negative social impacts of the project at different likely scales of implementation. As much as possible, efforts were made to have a good estimate of the magnitude of change due to project implementation through consultation of documents with proposed plans and local government representatives that worked on their own plans and those that are proposed by the current project.

7.4 The ESMF includes a requirement for public consultations and disclosure of EIA reports and/or environmental and social screening results to relevant stakeholders, including potentially affected persons.

7.5 Furthermore, the ESMF includes questions that will enable future project implementers to identify potential adverse social impacts due to land acquisition and to

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ensure that the appropriate mitigation measures are implemented in compliance with the provisions of OP 4.12 Involuntary Resettlement as outlined in the project’s Resettlement Policy Framework (RPF).

7.6 Consultation with potentially affected people: In the absence of an approved plan with all the necessary details, asking direct questions related to potential adverse impacts could cause several difficulties with unintended consequences, which may back fire on a project such as this. The most important one was we, the consultants, becoming agents of unintended process that may trigger individual and communal ‘unrest’ that may have very serious damaging effects both on the biophysical components of a site and also the psyche of the people concerned. The consultants thus conducted informal discussions particularly with local residents of potential investment areas on the various values of a site to them and other people in their community. This helped to determine the livelihood and other values of potential investment areas which was very useful to make indirect evaluation of the losses people may bear if their existing private and public establishments are going to be lost or changed as result of project implementation.

7.6.1 Whenever the consultants discussed the issues with local residents and key informants they carefully solicited ‘harmless’ information that is very helpful in making inferences. Where possible, we used experience from implemented resettlement cases and the knowledge that we gained through our observation of likely localities of changes to validate our inferences. Unless a measure of very high magnitude that may strongly present itself as an alternative to improve the state of Protected Areas is carried out, our observation led us to believe that there may not be a need for any investment that may lead to resettlement of rural communities in mass to new areas very far from sites of interest.

7.6.2 If implementation of an investment venture that will result in resettlement of residents of a locality to a new site is inevitable, the affected persons may experience a range of difficulties with impacts that include mild up setting of daily routines and some level of financial strains. First and for most, whatever the local way of life that people are accustomed to they have many good objective reasons for choosing to live in their current settlement area. Despite the evident poor condition they live in, many of those to whom we talked to perceive the environment they live in positively with a mix of spiritual and material justifications.

7.6.3 However, we understand that several essential measures with benefits that outweigh the individual and collective costs must be taken at many of the sites, at least by way of correcting the collective mistakes accumulated in time. In such a situation, a just compensation mechanism will address the most basic and the essential. Beyond that grievances may be caused by increased inconveniences in reaching/accessing locations and facilities related mainly to work (clergy, civil servants and merchants), worship, shopping (traditional and modern), and school (both children and adults). Various income and job creation schemes may be implemented to address most of this difficulties opening up a venue for solving problems of joblessness and poverty. Improvement of existing infrastructure such as roads as proposed by the ESTDP benefit not only tourists but also local residents of the investment areas. As the tourism sector in these areas grows there will be significant positive changes in the lives of local residents by way of creation of job and other income generating opportunities.

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8. Description of the Project

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

Project components

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

8.3. The project will have four components: (1) destination development, (2) market development, (3) institutional and capacity building, and (4) results monitoring and implementation support.

Component 1: Destination Development – US $15.43 million

8.4. This component will have three sub-components: (i) the rehabilitation and enhancement of basic infrastructure in key historic sites, (ii) visitor services enhancement in selected destinations, and (iii) tourism product development.

Sub-component 1.1: Rehabilitation of heritage sites and enhancement of basic infrastructure in selected destinations (US $10.33 million)

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

Sub-component 1.2: Visitor services enhancement in selected destinations (US $4.00 million)

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

Sub-component 1.3: Tourism product development(US $1.10 million)

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

Component 2: Market Development - US $7.84 million

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

Subcomponent 2.1: Positioning and marketing (US$2.69 million)

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

8.10. The following activities will be specifically financed: (i) positioning and marketing strategy, (ii) communication and promotion plan, (iii) promotional materials, (iv) participation in trade fairs, and (v) development of a tourism e-commerce online platform.

Subcomponent 2.2: Demand-driven linkages program (US$ 5.16 million)

8.11. This sub-component seeks to (i) enhance the competitiveness of the Ethiopian tourism private sector through a cost-sharing (50%-50%) matching grant scheme with an allocation of US $ 3.0 million, and (ii) foster community involvement in the sector so as to optimize benefits for the poor with an allocation of US $ 2.16 million. Beneficiaries in this category will not be required to match the support they receive through the project because it will not be feasible.

Matching grant scheme (US$3 million IDA financing and US$3 million beneficiary contribution)

8.12. The matching grant scheme will foster linkages by supporting small businesses mostly focusing on the selected destinations so that they can participate more fully in tourism sector activities through expanding their business skills and improving the quality of their products and services. For the destinations to become more attractive sites that offer comprehensive services (not just self-contained in high-end resorts), they need more active engagement from smaller businesses. This segment, however, tends to lack financial capacity or skills. Addressing this gap, the matching grant scheme will seek to finance projects (with

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both established and emerging entrepreneurs) that will allow entrepreneurs to increase, upgrade and innovate in the tourism value chain. The scheme will in particular help (i) upgrade technological and managerial skills, (ii) improve market intelligence and access, and (iii) foster backward and forward linkages within the private sector and eventually increase the spill-over effects of the entire sector. The matching grant scheme will be in the amount of $3 million, which will be matched dollar for dollar by private sector beneficiaries.

8.13. Implementation arrangements for this sub-component are discussed further in annex 4. There will be a dedicated specialist for the management of matching grants who will be supported by an international travel and hospitality expert working under the PCU. An implementation manual will be developed by the client governing the process. The basic principles will follow a competitive process. Key factors determining the selection process will be achievable outcomes expressed in measurable indicators contributing to the provision of improved products and services to tourists at the destinations. The PCU will provide free hand-holding support for the preparation of business plans that describe each beneficiary’s proposal. The grant scheme will operate on a reimbursement basis upon the successful implementation of approved proposals.

Community involvement (US$2.16 million)

8.14. With respect to community involvement, the project will provide support to communities in the form of (a) awareness-raising about how they can better participate in industry activities, (b) support to community organizations to benefit from tourism development and to address tourism’s social impacts, (c) training and skills enhancement in areas that can help increase their actual participation as employees, suppliers, and small business operators, and (d) develop partnerships with the private sector to develop linkages for common benefits. Economic opportunities for that will benefit communities cover a wide range of areas such as retail activities, crafts and souvenirs, tour guiding, catering, transportation services (e.g. mule renting), entertainment and performance arts, and possibly bed and breakfast operations. The expertise accumulated by NGOs working at the community level in tourism will be tapped in the process of the above activities and partnerships with private businesses will be encouraged in the three destinations of Axum, Lalibela and Addis Ababa and environs.

Component 3: Institutional Development and Capacity Building - US$7.04 million

8.15. This component will aim to build capacity in sector management through supporting existing and new institutions. It will consist of two sub-components: institutional development and capacity building.

Sub-component 3.1: Institutional development (US $3.92 million)

8.16. Specific activities that will be financed include: (i) Institutionalization of policies (including development of strategic plan based on the national tourism policy) and competitiveness enhancement activities; (ii) Strengthening of the MOCT (including the provision of a Tourism Advisor in the Minister’s Office) and of Regional Tourism Bureaus, (iii) Establishment of standards and rating schemes for tourism enterprises; (iv) Information systems strengthening (statistics); (v) Institutionalization of and support to the Tourism

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Council1; (vi) Establishment of a Tourism Board to foster public-private partnerships in the area of tourism promotion.

Sub-component 3.2: Capacity building (US $1.63 million)

8.17. To enhance the skills in the tourism sector and the quality of services that would contribute to higher tourist satisfaction, this sub-component will support (i) the development of a tourism education and training assessment and prioritized development plan, (ii) tourism training institutions’ programs, (iii) skills enhancement at the MOCT and other stakeholders, and (iv) the upgrading of guides and the hospitality industry workforce to standard levels of professionalization.

Component 4: Implementation Support and Results Monitoring (US $2.70 million)

8.18. The implementation arrangements are based on the set-up of a Project Coordination Unit, staffed with high-standard professionals who will be competitively selected. They will be assisted by experts who will support the Heads of Regional tourism bureaus in key destinations, particularly in the Amhara, Tigray and Addis Ababa Regions.

8.19. The PCU’s work will be advised and facilitated by a Steering Committee composed of public sector and private sector representatives, and reporting to the Minister of Culture and Tourism. The PCU will have responsibility for project implementation, monitoring and evaluation. Implementation support will be allocated as follows: (i) PCU implementation support (US$ 2.06 million) and (ii) monitoring and evaluation (US $0.64 million).

8.20. This component will particularly put an emphasis on fiduciary (procurement and financial management), and monitoring and evaluation. Safeguard capacities enhancement will also be supported throughout project implementation.

Further details are provided in Annex 4 of the Project Appraisal Document.

9. Potential Social and Environmental Impacts of ESTDP Project

9.1 Within the context of the ESTDP, the emphasis is strictly on the church sites at Lalibela, the clusters at Axum and also the activities to be carried out in Addis Ababa. It must be stressed that only two satellite churches in Lalibela have intact natural habitats around them and the ESTDP is not going to fund infrastructure development projects that are detrimental to these ecosystems. Hoping this understanding clarifies the use of the document, the consultants proceed describing the project component/s that most likely will have specific activities that will cause environmental and social problems.

9.2 The consultants proceed by examining and describing the potential negative impacts by dealing with likely infrastructure and other investment types with potential negative impacts. They identified that project component 1 will have to accomplish several very

1 Tourism Councils are initiated to operate at federal, regional and Woreda levels. There is a guideline governing their operation; they have a General Assembly, an Executive Council and specialized units. They are expected to (1) discuss and solve operational problems, (2) provide policy advice to government and (3) act as feed-back loop for general operational trends. Currently, their operation is minimal and this project aims to enhance their capacity for more effectiveness.

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obvious tasks to address problems that inhibit the tourism sector on the ground. These will include carrying out improvements of existing infrastructures and service provision facilities at the proposed investment areas. Relative to each anticipated/planned investment type the environmental, social negative outcomes are described, and mitigation plan for each adversity is provided.

9.3 Within the context of the ESTDP, the consultants’ assessment of the project components and their potential impacts showed the following Bank Safeguard Policies have been triggered: OP/BP 4.01 Environmental Assessment, OP/BP 4.11 Physical Cultural Resources, and OP/BP 4.12 Involuntary Resettlement.

9.4 Description of potential negative environmental impacts

9.4.1 In the course of preparing the ESMF, the consultants identified a number of potential localized adverse environmental and social impacts that could result from the planned construction and/or rehabilitation activities if left unattended.

Water and soil pollution: Water and soil pollution is likely to occur as a result of poor management of camp sites, poor construction techniques, and incorrect location of sanitation facilities in relation to water supply sources. Discharging human organic sewer in rivers will result in serious pollution and may affect the health of both on site and low-stream residents. A communal sewer drying facility, in a suitable low impact area, must be established so that the collected organic waste may be used to generate fertilizer or biogas/fuel. Burial of sewer storage structures if done where important vegetation areas are found, will interfere with the roots of mature trees and may inhibit germination and regeneration processes. Additional negative effects will be on underground invertebrates and other microorganisms that play important role in the maintenance of soil quality. This will result in reduction of food resources of, for example, ground foraging birds. Thus, up on establishment, such considerations must be taken in to account.

Soil erosion: Soil erosion is likely to occur during construction and/or rehabilitation of roads as well as buildings due to the application of environmentally and socially unsustainable construction practices.

Loss of vegetation: Loss of vegetation is likely to occur in cases where future investments such as the rehabilitation of roads and the provision of sanitation facilities require the removal of vegetation to accommodate the required investments. Improvisation of old roads and new ones may also have significant indirect negative effects on prime natural habitats that are not accessible to commercial prospectors of various forms with out the presence of a good all weather road. Particularly sites that are not legally but traditionally conserved are most vulnerable in this category. We determined that such sites exist and they have very high conservation and ecosystem service values (including tourism). In such cases, all existing conservation opportunities must be utilized (effective conservation institutions that are parts of local governments) including imposition of national legislations and policies including the country’s constitution to reduce the vulnerability of such sites.

Dust pollution: This is a temporary negative effect mainly is expected to occur during rehabilitation and improvement of existing roads. This may cause some health problems particularly in crowded urban areas, but for majority of the exposed the impact is not severe

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than a temporary nasal discomfort. This can be mitigated by regularly sprinkling water from trucks.

Noise pollution: In highly transformed landscape the impact of this both on humans and wildlife is quite minimal. In densely settled urban areas, the noise from heavy machinery may affect some of the daily activities of residents/site occupants, but significant disruptions are not expected. In areas where particularly globally threatened and restricted range species such as the Harwood’s Francolin (which we spotted but not with 100 % confirmation) and the Ruppell’s Black Chat occur the noise by machineries and trucks may cause some level of disturbance of breeding and feeding activities. If possible, it is most preferable that the nesting and feeding grounds of such species are identified at the planning stage of road construction so that positive route adjustments could be made.

Loss of remnant indigenous habitats: In some of the urbanized sites where the attractions are churches and other socio-cultural structures there are patches of mature indigenous woodlands that provide essential natural habitat to birds and other organisms. Some of the bird species in and around urban sites are globally threatened and restricted range species, in the case of the presence of which a site automatically qualifies as an internationally important site for conservation. In addition, the richness of urban tourist sites particularly in resident and migrant birds makes them highly attractive tourist destinations for those who are interested in both the natural and cultural attractions. Such habitats may get lost completely if they are removed for the purposes of construction of some mega-amphitheater/or roads. It is thus vital that the planning and construction of such facilities and infrastructures ensures the integration/maintenance of these habitats.

However, as indicated in the project description, ESTDP will not fund the construction of mega-amphitheaters, and therefore, impacts as described in this section will not occur. Furthermore, the summary table of the Bank’s Safeguard Policies indicates that investments that might negatively affect natural habitats will not be funded under ESTPD.

9.5 Description of potential negative social impacts

Resettlement: Upgrading of existing roads may involve expansion in width that may affect a few of the many houses located along the road, depending on the scale of expansion required and the pattern of human settlement. The issue of resettlement may also be caused by opening up of occupied space in the effort that must be made to enhance the tourist appeal of sites. As long as implementation of a given investment venture or conservation measure is inevitable, a resettlement initiative, that has a compensation package with all the input provisions must be implemented.

Implementation of such compensation packages will take place in compliance with the provisions of the Resettlement Policy Framework (RPF) which has been prepared for ESTDP in compliance with OP 4.12 Involuntary Resettlement. It should be noted that when there is a discrepancy between national resettlement legislation and OP 4.12, the provisions of the latter prevail for the duration of the ESTDP.

Livelihood: As roads are upgraded and sites are rehabilitated, people may loose a portion of their land, shops, bars, open market spaces and incomes from leasing houses for residence and other purposes. In all cases, compensation that is considered just by the law of the land must be applied as well as the provisions of OP 4.12 Involuntary Resettlement. Where the

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effect was on businesses of any scale, in addition to the compensations for the buildings lost (where ownerships is applicable) a new space with comparable benefits must be provided for business to reestablish and flourish. Such an initiative must be comprehensive, so that there may not be any loopholes that will result in severe negative consequences particularly on the already marginalized segments of society. For some, leasing their current houses for tenants may be their only means of livelihood and a compensation mechanism that provides them only with new houses built in areas that they may not be able to rent them out in any feasible future time scale may not be good enough. This may be much more severe on the old and the disabled. Thus, it is vital to make a detailed assessment of livelihood issues before making decisions on compensation packages.

Implementation of such compensation packages will take place in compliance with the provisions of the Resettlement Policy Framework (RPF) which has been prepared for ESTDP in compliance with OP 4.12 Involuntary Resettlement. It should be noted that when there is a discrepancy between national resettlement legislation and OP 4.12, the provisions of the latter prevail for the duration of the implementation of the project.

Potential adverse impacts on cultural/historical attractions: Maintenance of individual cultural/historical structures is being carried out by strictly following the UNESCO guidelines (Vienna Memorandum, 2005), thus other than lasting benefits we don’t foresee any damage caused by the preservation initiatives being carried out currently. Any future conservation scheme, we understand from our discussions with government officials, is not going to be carried out in a manner that is going to change the ancient design of any of the structures in any form. At some of the sites there are ancient houses that are still being used by people as residences. Evidently, some renovation utilizing local masonry skills have been carried out resulting in some level of undesirable changes. A project such as the ESTDP must target such scattered structures of very high value in its identification and conservation components. The main damage comes from the semi-modern urbanization of the areas surrounding most of the cultural/historical structures. Even in its current state, the surrounding urban environment built around the historical/cultural structures diminished the purpose and design of their building substantially. The subtlety of their enduring legacy that could have been reflected by the different aspects of the surrounding natural landscape is lost amidst the Ethiopian urban chaos that is mainly a result of ardent poverty.

Without question, detailed studies must be conducted to enhance the large scale view of most of these structures that in some cases, even the network of building locations may have some spiritual and historical significance. Maintenance of the kind of large-scale historical and cultural atmosphere may start by being careful about the architecture and location of various forms of new communal facilities that may be built through this project. Without such considerations, the consultants understood from our discussion with some tourists, permanent ultra modern structures may be built resulting in tourist disappointment rather than increased pleasure. Thus any new building scheme must have a design that captures and enhances the ancient spirit of the cultural sites particularly in Lalibela and Axum.

Very ancient manuscripts are also parts of the tourist attraction as they are being displayed to every visitor by priests in some of the sites. It is essential that the originals either be displayed insulated from physical contact with humans and very good copies must be produced for those who want to examine the contents.

9.6 Environment and Social Management Plan

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9.6.1 The potential environmental and social impacts have been discussed in this chapter, while the proposed mitigation and monitoring measures have been discussed in chapter 10.

9.6.2 Knowledge gained from field observations and experiences of the consultants and other project team members regarding the potential environmental and social impacts of the project were evaluated. It is thus vital that implementers of the project in the future will be able to take necessary measures to mitigate the different anticipated potential problems. With this requirement in mind a Summary Environmental and Social Management Plan (ESMP) is developed (Annex 1). The list of sensitive issues provided in the ESMP are based on the realities of the proposed investment sites relative to the impacts of the activities intended to be carried out by the ESTDP. This is expected to provide sufficient guiding information that helps to determine whether a planned activity is going to have the anticipated negative impact, measure its magnitude and devise a clear guideline to either eliminate or significantly reduce the negative change an activity causes to the specific location where it is planned to be executed.

9.6.3 The purpose of the ESMP is to ensure that (i) the institutional responsibilities and cost estimates for the effective management of the environmental and social aspects of ESTDP are clear and (ii) appropriate environmental and social management capacity is provided under ESTDP.

10. Potential environmental and social mitigation measures

10.1 As discussed in chapter 9, the potential localized adverse environmental and social impacts are expected to be limited. Potential mitigation measures related to air, noise, and water pollution, soil erosion, and loss of vegetation are mainly captured in the (i) Environmental and Social Checklist (Annex 3); and (ii) Environmental Guidelines for Contractors (Annex 4).

10.2 The Environmental and Social Checklist (Annex 3) will be used during the screening for potential localized adverse environmental and social impacts of future investment such as roads, water supply and sanitation systems, and solid waste management. The checklist will be adapted to the specific requirements of future specific investments by qualified personnel to ensure that potential adverse impacts on water sources and soils are avoided as much as possible. A consultant with relevant environmental and social impact assessment experience is expected to carryout the tasks of assessing the negative adverse consequences of specific project investments in collaboration with, the site Officers and relevant regional experts drawn from Addis Ababa, Amhara, Tigray and Ormiya regional government offices providing information regarding specifc investments and collection of Data.

It is expected that the steps described in chapter 11 are going to be used during the screening of potential adverse impacts of a specific proposed project investment and also determining appropriate impact categories as per the standards set by the Bank.

10.3 The Environmental Guidelines for Contractors (Annex 4) will be attached to the bidding documents to ensure that environmentally and socially sustainable construction

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techniques will be used, thereby avoiding potential water and soil pollution or soil erosion. This, it is expected to be overseen by the ESTDP and relevant environmental authorities.

10.4 The summary of the Bank’s safeguard policies (Annex 6) provides guidance to future project implementers as to how to implement ESTDP activities in compliance with these safeguard policies.

10.5 The project’s Environmental and Social Management Plan (ESMP - Annex 1) summarizes the institutional responsibilities for implementing and monitoring the mitigation measures, including time horizons and cost estimates. The ESMP will be included in the Project Implementation Manual.

10.6 Appropriate implementation of the project’s Environmental and Social Management Plan is dependent on application of the recommended mitigation measures as they are in the plan or with further future refinements as found appropriate during implementation of specific project activities. The indicators in the mitigation plan (Annex 1) are expected to measure the successes of the project’s adherence to ESMF in implementing its proposed activities. This will be the responsibility of the relevant government environmental authorities of Addis Ababa, Oromiya, Amahara and Tigray regions and site officers of the ESTDP in collaboration with consultants of relevant expertise.

11. Purpose of the ESMF11.1 The rationale for developing the ESMF is that the exact locations of future sub-projects could not be identified prior to the appraisal of the ESTDP, and therefore could not be assessed and mitigation measures could not be proposed. To ensure that future investments are environmentally and socially sustainable, the ESMF has been prepared to enable future sub-project implementers to identify, assess, mitigate and monitor potential localized adverse environmental and social impacts of future investments.

11.2 The key component of the ESMF is the Environmental and Social Screening Form (ESSF - Annex 2) that must be filled for every investment that the ESTDP funds to determine the potential adverse environmental and social impacts and to develop appropriate mitigation and monitoring measures in compliance with the Bank’s safeguard policies as well as Ethiopia’s environmental policies and legislation.

11.3 The environmental and social screening process involves the following steps:

Step 1: Completion of the ESSF: Completion of the ESSF at the actual project sites will be the responsibility of the Site Officers in Lalibela and Axum, under the supervision of the ESTDP Environmental Specialist located in the Project Coordination Unit (PCU), Addis Ababa. In Addis Ababa, the PCU’s Environmental Specialist, with consultant support as necessary, will complete the ESSF.

Step 2: Assignment of the appropriate environmental category: Assignment of the appropriate environmental category based on the screening results and consistent with OP 4.01 will be the responsibility of the Site Officers in Lalibela and Axum, under the supervision of the ESTDP Environmental Specialist located in the PCU, Addis Ababa. In Addis Ababa, the PCU’s Environmental Specialist, with consultant support as necessary, will assign the appropriate environmental category to a planned investment activity. As per OP

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4.01, the following environmental categories will be considered during the environmental and social screening process:

(a) Category A: A proposed project is classified as Category A if it is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. EA for a Category A project examines the project's potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" situation), and recommends any measures needed to prevent, minimize, mitigate or compensate for adverse impacts and improve environmental performance. For a Category A project, the borrower is responsible for preparing a report, normally an EIA (or a suitably comprehensive or sectoral EA) that includes as necessary, elements such as environmental audits or hazard or risk assessments.

Note: It must be noted that sub-projects assigned the environmental category A will have to be either redesigned and rescreened or dropped because the parent project ESTDP has been assigned the environmental category B. Therefore, category A sub-projects cannot be funded under ESTDP.

(b) Category B: A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas - including wetlands, forests, grasslands, and other natural habitats - are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measures can be designed more readily than for Category A projects. The scope of EA for a Category B project may vary from project to project, but it is narrower than that of Category A. Like Category A, it examines the project's potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance.

Note: Since not all sub-projects are likely to require separate EIA reports, and to facilitate the implementation of future investments, it is recommended that project implementers assign the environmental category (a) B1 to sub-projects that require only the implementation of simple mitigation measures as per Environmental and Social Checklist (Annex 3 of the ESMF) or, (b) B 2 to sub-projects that are likely to have more complex impacts and thus would benefit from the recommendations of a separate EIA report, adapting the generic EA terms of reference in Annex 5 of the ESMF.

(c) A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EA action is required for a Category C project.

Note: In cases where the screening results indicate that no or insignificant adverse environmental and social impacts are likely, no additional environmental work will be required and the sub-project can proceed with implementation.

(d) Category FI: A proposed project is classified as Category FI if it involves investment of Bank funds through a financial intermediary, in subprojects that might result in adverse environmental impacts

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Note: This environmental category will not apply to any of ESTDP’s planned investments as none of them will involve the investment of Bank funds through financial intermediaries.

Step 3: Carrying out the appropriate level of environmental work: Based on the environmental and social screening results, the sub-project implementers will carry out the appropriate level of environmental work. Thus, in the case of sub-projects that have been assigned the environmental category B1, the screening results, including the proposed mitigation measures and summaries of public consultations carried out during the screening process will be forwarded by the Site Officers to the PCU’s Environmental Specialist as well as the responsible regional EPAs for review and clearance.

In the case of sub-projects that have been assigned the environmental category B2, the Site Officers, with support from the PCU’s Environmental Specialist, will adapt the generic EA terms of reference to the proposed sub-project and recruit qualified EA Specialists to carry out the EIA based on Ethiopia’s environmental impact assessment procedures.

Step 4: Public Consultations: Public consultations will be carried out by the Site Officer in the course of the environmental and social screening process, and the results will be documented at the end of the form, and the results will be disclosed in publicly accessible places. Once a decision is made to under take an EIA, public consultation will be carried out by the EIA consultant in the context of the EIA preparation and as required by Ethiopian legislation with potentially affected persons and relevant stakeholders and local NGOs.

Step 5: Review and clearance: The Site Officers, in consultation with the PCU’s Environmental Specialist, will forward the environmental and social screening results, along with the recommendations and public consultations outcomes to the responsible regional EPAs for review and clearance.

Similarly, separate EIA reports will be submitted by the Site Officers, in consultations with the PCU’s Environmental Specialist, to the responsible regional EPAs for review and clearance.

Step 6: Environmental monitoring: Environmental monitoring generally involves the evaluation of sub-project implementation in terms of following up on recommendations that are made by an EIA report or auditing report and in the case of the ESTDP the recommendations made in the ESSF. The responsibility of ensuring this lies with the PCU’s Environmental Specialist who is expected to actively liaise with the responsible regional EPAs.

12. Monitoring of ESMF Implementation

12.1 The monitoring procedure for the implementation of the ESMF will be included in the M&E Program for ESTDP. The ESTDP team includes management teams based in Addis and at the Amhara and Tigray Regions that regularly follow up the performance of the Site Officers who will be based at a destination site to implement plans and instructions that he/she receives and report on schedule to the PCU in Addis Ababa in appropriate offices in the two regions.

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12.2 The management team makes proper evaluations of the reported results to make sure the project is implemented as planned. The mitigation measures proposed in this document must be evaluated and regularly monitored according to the following schematic structure of project implementation.

12.3 Direct evaluation of implementation of the ESMF will be a collaborative task amongst consultants, the ESTDP and the respective environmental authorities and this will be reported and evaluated for congruence with the Bank’s standards as per the professional procedures of the lender.

13. Capacity Building and Training for Environmental Management

13.1 The technical and management capacity to execute ESMF weak at the local level. Qualified staff in Environmental Management are very limited even at the Federal and Regional levels. Availability of qualified and well-trained personnel is, therefore, crucial to effective implementation of ESMF for ESTD Project. Training is needed particularly for regional and local staff working in Tourism development and Environmental Management sectors as well as for local government leaders and decision makers. The geographic scope of this capacity building initiative will be limited to the regions where the ESTDP sites are found.

13.2 Detailed technical training for participants overall should focus on the need to analyze potentially adverse environmental impacts, to prescribe mitigation approaches and measures, and to prepare and supervise the implementation of management plans. This training should address such matters as community participation needs and methods; environmental analysis; with the use of environmental screening and other checklist, reporting; and subproject supervision and monitoring that is the implementation of the environmental and social screening process outlined in the ESMF.

13.3 To ensure efficient implementation of the ESMF, the PCU will hire an Environmental Specialist to be located in Addis Ababa. This Environmental Specialist will coordinate activities related to the implementation of the ESMF with the Site Officers, the regional EPAs and the relevant municipalities in the Addis Ababa, Oromiya, Amhara and Tigray Regions. In addition, the PCU will hire a Social Specialist, to be located in the Mayor’s Office in Lalibela to ensure efficient implementation of the provisions of the Resettlement Policy Framework (RPF).

Proposed Training Elements

The following provides some general items for training. These can be changed to accommodate any site-specific needs.

Proposed Training Item DurationEnvironmental and Social policies, procedures, guidelines and standards 5 days

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Review and discussion of Ethiopia National Environmental Policies, legislations, Procedures and Standards Review and discussion Bank’s safeguards policiesReview of Ethiopia’s cultural heritage policiesEnvironmental and Social Management Process:

Review of Environmental Social Management Process;Use of Screening form and Checklist to determine adverse impacts from sub projects activities;How to measure cumulative adverse impactsHow to manage social issues How to review and clear the sub projectsThe importance of public consultations in the ESMF process;How to monitor sub projects performance vis-à-vis ESTD objectives?How to monitor mitigation measures?How to manage cultural heritage sites in the context of ESTDP

5 days

Selected topics on environmental protection

National Resource Management, sustainable soil conservation and prevention of Deforestation;Solid Waste Management Pollution of Water resources; Soil ErosionRenewable energy use and energy conservationManagement of Quarry sites

3 Days

13.4 Capacity building measures for the management of social and environmental impacts require qualified personnel with necessary skills and training. The cost associated with implementing the ESMP include: training costs, labor costs associated with information dissemination, local travel costs for community members, cost of information materials, and the use of media such as radio and TV.

13.5 The following cost estimates are based on the assumption that the training will be held at the Wereda levels with one training session in Addis Ababa. Potential trainees are likely to come from all regions of Ethiopia. They will require per diem and travel allowance. The complete training costs are known only after carefully defining needs, venues, etc., and competitively selecting national firms specializing in environmental management. The total cost for the training and awareness raising activities is, however, estimated at about $200, 000 for all the two regions and two City states where the ESTDP will be implemented.

13.6 It is assumed that the mitigation costs will be included in each Civil Works Contractors’ negotiated final cost for a project. The cost of conducting an EIA for any sub-project will be part of the total cost of hiring a specialized sub-contractor, the cost of which depend on the number of projects requiring EIA.

14. Recommendations

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14.1 ESTDP: With regard to the ESTDP, it is recommended that the environmental training program be implemented before the start of the project to ensure that the relevant stakeholders are capable of implementing the provisions of the ESMF.

14.2 It will be important to attach the Environmental Guidelines for Contractors to the bidding documents to ensure the application of environmentally and socially sustainable construction techniques.

14.3 It will be further more important that the ESTDP coordinate its support for the provision of water supply and sanitation, including solid waste management, with the relevant municipalities and Regional Water Bureaus.

14.4 Long-term development: With respect to long-term tourism development, the following should be kept in mind.

o Tourist destination sites in the country are growing rapidly and the rapidly growing tourist destination sites affect the environment through five major routes:

o the unsustainable conversion of land,o the extraction, depletion and destruction of natural and cultural resourceso the disposal of wastes, emissions and pollution, o Overurbanization leading to lack of access to basic environmental infrastructure and

services such as inadequate water supply, sanitation, and drainage, inadequate municipal solid waste management (MSWM); and

o Occupation of hazard-prone areas and exposure of urban populations to natural and man-made hazards and aggravating natural or man-made hazards.

14.5 To reverse environmental degradation in tourist destination sites, it is essential to understand and specify the factors (root causes), that perpetuate the lack of appropriate preventive and curative environmental actions. In large part, environmental problems in these centers are attributed to population growth, accelerated urbanization and uncontrolled settlement patterns and dynamics, inadequate governance, lack of public and political awareness, institutional deficiencies, inadequate regulatory and economic policies and actions (or inaction) by public and private actors, the absence of full participation, and insufficient knowledge and information.

14.6 While most studied tourist centers share some of these common problems and causes, the specific environmental concerns of each area are different, depending on their economic status, the prevalence of poverty and unequal access to services, and other factors. Among the many environmental issues, the following key and major environmental priorities are identified for the tourist centers:

o Lack of proper land use planning and development control;o Problems related to the provision of environmental infrastructure and services;o Loss of environmental resources and prevalence of pollution and natural hazards;o the need for institutional strengthening and capacity building and environmental

information Network to help develop the tools needed to support the first three.

14.7 In preparing future site-specific environmental strategies the following recommendations should be taken into account:

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Identify Environmental Issues: To help identify priority problems in the specific tourist centers, the screening of environmental issues should include a comprehensive assessment of environmental conditions. The screening should cover such issues as: trends in urbanization; the economic importance of tourist centers; and the nature, magnitude, and costs of environmental problems; and the inter-relationships between poverty and environmental degradation, and between environmental problems and other resource management issues (for example energy conservation).

Set Priorities: Tourist centers need to be more rigorous in setting priorities among environmental problems. Among the various inter-related environmental issues confronting tourist centers identify one or more problems that should receive priority attention. Criteria to be considered in priority setting include:magnitude of health impacts associated with the problem,economic losses caused by the problem,number of people and income groups affected by the problem,degree to which unsustainable use of resources causes the problem, andwhether the problem leads to irreversible outcomes.

Identify Root Causes: Reversing environmental degradation requires a good understanding of the factors that perpetuate it. In formulating site-specific environmental strategy, it will be necessary to examine the causes of priority environmental problems to facilitate the identification of key actions, specifically those that may be needed to remove pricing distortions, establish the necessary policy and legal frameworks, and establish critical financial, technical assistance, or other types of capacity building programs.

Choose the Right Instruments: The environmental management programmme should specify the particular policies and instruments that should be adopted to resolve the problems as well as the specific institutional arrangements for implementing and enforcing them. No single instrument will be effective in achieving all environmental management objectives; there is a need to select an appropriate mix of instruments that match the special characteristics of each problem and locality, the specific actor whose behavior needs changing, and enforce the desired response.

Identify "Win-Win “Situations: In selecting the most appropriate instruments for addressing environmental problems, try to identify the "win-win" policies first.

Clarify Institutional Responsibilities and Capacity Building Needs: As the level of attention and involvement in environmental management intensifies, the possibility for duplication of effort and inefficient resource utilization increases. The management strategy should clearly delineate the institutional structure and responsibilities for implementing the recommended actions to improve environmental conditions as well as for guiding and coordinating the actions of the various government agencies, municipalities, NGOs, private sector, and donors. Similarly, environmental management requires substantial capacity building at the local level. The strategy should, therefore, specify the capacity building needs of key actors to implement its recommendations.

As much as the project is expected to involve the private sector as a beneficiary and a partner in the process of enhancing the contribution of the tourisms sector, there must be a process based collaboration in fulfilling the environmental and social responsibilities of the project.

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The public side of the project must take full responsibility in developing and implementing impact reduction mechanisms making the engagement of the private sector mandatory. The private sector must respond by sharing the burdens of financing, implementation, monitoring and reporting of impact mitigation measures that are essential for the sustainability of the tourism business.

The project will also open up venue for strengthening the ability of the poorest segments of urban and rural tourist sites by creating mechanisms that will enable them to access capital that will enhance substantially their living standards as well as their ownership of the project’s long-term economic, environmental and social purpose. In tourist areas where possible, it is vital if the current communal resource allocation mechanism, such as communal provision of condominium houses in towns across the country, may be imitated with substantial modifications that give unconditional emphasis to the recommendations made in the mitigation plan. This will help substantially to reduce some of the environmental and social pains at some of the sites that may be suitable for implementation of such intervention. In rural sites such as PAs, temporary or permanent engagement of local people in the provision of various services to tourists communally or individually as deemed appropriate, will enhance their partnership both in the fulfillment of the Project’s short and long-term purposes. Most importantly this is one of ‘carrots’ that must provided before the use of the ‘stick’ to implement several essential biodiversity conservation measures as long as it is an unavoidable fact that people and wildlife are going to cohabit such sites.

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Annex 1Environment and Social Management Plan (ESMP) for mitigating potential

environmental and social problems of the ESTDP during implementation

Activity Potential environmental

and social impacts

Mitigation measures

Indicators Responsibility of

implementation

Monitoring responsibility

Time Horizon Cost estimate (US$)

Rehabilitation of existing facilities; construction of new facilities as necessary

Soil erosion, loss of vegetation, pollution, loss of land and/or livelihoods

Application of Environmental Guidelines for contractors

Implementation of simple mitigation measures as per screening results

Preparation of a separate EIA report if necessary

Implementation of RPF as necessary

Restoration of indigenous habitats of sites

Soil erosion reduced, minimum loss of existing indigenous vegetation and its appropriate expansion through enrichment and other planting, appropriate compensation for land/livelihood loss, minimum dust and noise pollution

Contractor

Sub project proponent

EA consultant

Social consultant

Contractors

Federal and regional EPA/Site Officer PCU Safeguard Specialist/Site Officer

Ongoing

As required

As required

As per contract

Contractor’s cost

Included in Municipality Budet

Included in Municipality Budget

Included in contract costs

Rehabilitating existing short roads in Lalibela

Soil erosion, water pollution, loss of livelihoods and/or land

Preparation of EIA Report

Application of environmental guideline for contractors

Implementation of RPF as necessary

Restoration of indigenous habitats of the area

Soil erosion reduced, minimum loss of existing indigenous vegetation and its appropriate expansion through enrichment and other planting, appropriate compensation for land/livelihood loss, minimum dust and noise pollution

EA Consultants/ Municipality

Contractors

Social Specialist

Contractors

Site Officer/ PCU Env. Specialist

Site Officer/ PCU Env. Specialist

Muncipality/ Social Specialist

Site Officer/ PCU Env. Specialist

On going

Ongoing

As required

As per contract

Included in Municipality Budget

Included in contract costs

Improvement of water supply and sanitation, including solid waste management

Soil erosion, water and soil pollution, loss of livelihoods and/or land

Refer to local plans for water management and ensure safe management of the water sources

Follow sector guidelines for water supply and sanitation, including solid waste management

Implementation of RPF as necessary

Application of Environmental Guidelines for

Organic waste storage facilities built in environmentally non-sensitive areas, organic waste treatment facilities built and used to either completely avoid its discharge in to the surrounding rivers and streams or to reduce its pollutant attributes to an acceptable discharge standard, appropriate compensation for

Local Water Desk/ Contractors

Social Specialist

Contractors

Site Officer/ Regional Water Bureaus

Municipality/ Social Specialist

Site Officer/ PCU-Env. Specialist

As required Included in Municipality Budget

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Contractors land/livelihood loss, minimum dust and noise pollution

Rehabilitation of the National Museum in Addis Ababa

Application of Environmental Guidelines for Contractors

Contractor PCU/Site Officer As required Included in project costs

Strengthen capacity in Environmental and social management capacity

Contract international and local trainers

Apply the learnt theory and methods of the field

Implement Environmental Training Program as per the ESMF

PCU/Site Officer Federal EPA During the project implementation period

200,000

Total Costs 200,000

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Annex 2Proposed Environmental and Social Screening Form

The Environmental and Social Screening Form (ESSF) has been designed to assist in the evaluation of planed projects of the tourist sites and destination in Ethiopia. This ESSF will help future project implementers and reviewers in assessing potential environmental and social issues and impacts of the proposed project activities and also propose mitigation measures, if any.

The ESSF can also help identify the appropriate level of environmental work, e.g., whether a separate EIA may be required for a proposed project activity, or, whether the application of simple mitigation measures will suffice, or, whether no additional environmental work will be required.

The ESSF will allow reviewers to determine the characterization of the prevailing local biophysical and social environment and will also help identify potential socio-economic impacts that will require mitigation measures and/or resettlement and compensation. It is important that all the following sections of ESSF are fully and accurately completed by qualified environmental professional(s).

Name of project: ----------------------------------------------------------------------Sector: -----------------------------------------------------------------------------------Name of the region/zone/woreda in which the project is to take place: -----------------------------------------------------------------------------------Name of implementing Agency: -----------------------------------------------------------------Name of the Approving Authority: ------------------------------------------------------------------Name, job title, and contact details of the person responsible for filling out this ESSF:

Name: ------------------------------------Job title: ------------------------------------Telephone numbers: ------------------------------------Fax Number: ------------------------------------E-mail address: ------------------------------------Date: ------------------------------------Signature: ------------------------------------

Part A: Brief description of the proposed activities

Please provide information on the type and scale of the project (area, required land, approximate size of total building floor area).

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Please provide information about actions needed during the construction of facilities including support/ancillary structures and activities required to build them, e.g. need to: excavate borrow materials, lay pipes/lines to connect to energy or water source, access road etc.

____________________________________________________________

Please describe how the construction activities will be carried out, including support/activities and resources required to operate for example roads, disposal site, water supply, and others.

_______________________________________________________________

Part B: Brief description of the environmental situation and identification of potential environmental and social impacts

Describe the project’s (existing or proposed) location, sitting, surroundings (include a map, even if a sketch map ________________________________________________________________________________________________________________________________________________Describe the land formation, topography, and vegetation in/adjacent to the project area ________________________________________________________________________________________________________________________________________________

Estimate and indicate where and what type(s) of vegetation might need to be cleared.________________________________________________________________________________________________________________________________________________

Environmentally sensitive areas or threatened species

Are there any environmentally sensitive areas or threatened species (specify below) that could be adversely affected by the project?

(i) Intact natural forests: Yes __________No ___________(ii) Revering Forest: Yes ______________ No ___________(iii) Surface water courses, natural springs: Yes ___________ No ___________(iv) Wetlands (lakes, rivers, swamp, seasonally inundated areas): Yes ________No

______(v) How far is the nearest wetland (lakes, rivers, seasonally inundated areas)?

______________________ Km.(vi) Area of high biodiversity: Yes ___________ No ___________

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(vii) Habitats of endangered/threatened or rare species for which protection is required under the GEO’s national law/local law and/or international agreements. Yes ___________ No __________

(viii) Others (describe): Yes ____________ No ______________

Rivers and Lakes Ecology

Is there a possibility that, due to construction and operation of the training facility, the river and lake ecology will be adversely affected? Attention should be paid to water quality and quantity; the nature, productivity and use of aquatic habitats, and potential variations of these over time.Yes ______________ No ______________

Protected areas

Is the project (or parts of it) located within/adjacent to any protected areas designated by the government (national park, national reserve, world heritage site etc.)?Yes _________ No ____________

If the project is outside of, but close to, any protected area, is it likely to adversely affect the ecology within the protected areas (e.g. interference with the migration routes of mammals or birds, etc.)Yes __________ No ____________

Geology and Soils

Describe the Site Geology (according to available geological map):

Describe the soil as follows:Type of soilSensitivity to erosion, subsidence and slideExtent of erosion already taking place on site

Based upon visual inspection or available literature, are there areas of possible geologic or soil instability (prone to: soil erosion, landslide, subsidence, earthquake etc)?Yes ____________ No ____________

Based upon visual inspection or available literature, are there areas that have risks of large scale increase in soil salinity?Yes _____________ No _____________

Based upon visual inspection or available literature, are there areas prone to floods, poorly drained, low-lying, or in a depression or block run-off waterYes _____________ No _____________

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Site Hydrogeology:

Type of aquifer (continuous, fracture)Depth of aquiferSeasonal fluctuationsKnown quality problems

Surface Water

What is the water course in the surroundings of the site:Nature (river, stream, spring, lake)Distance to siteDownstream/upstream the siteGive an assessment of potential water course sensitivity to water point construction

and operation

Drainage conditions on-site

Description of present drainage conditions on site (site topography, infiltration capacity of soil):

Risks of water retention (site in a low point):

Feasibility of simple drainage improvements to eliminate water retention problems:

Water Use and Water Users

Describe the water use in the vicinity of the siteNature of water pointDistanceDownstream/upstreamType of usageGive an assessment of potential water use sensitivity to water point construction and

operationIs there potential for conflict between users; if so, how should this conflict be solved?

Does the municipality has a plan for portable water provision for tourist facilities separately from the local residents?

Has the municipality been consulted regarding water supply tourist facilities?

Would this cause stress on the water supply to local residents?

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Contamination and Pollution Hazards

Is there a possibility that the Tourism Facility will be a source of contamination and pollution (from latrines, dumpsites, industrial discharges etc?)Yes _____________ No _____________

Landscape/aesthetics

Is there a possibility that the Tourism Facility will adversely affect the aesthetic attractiveness of the local landscape?Yes __________ No ____________

Is there a need for environmental rehabilitation of the proposed investment area?

Yes____________, No_____________

If yes please identify the appropriate indigenous species in consultation with the local forestry/agriculture department.

Historical, archaeological or Cultural Heritage Site

Based on available sources, consultation with local authorities, local knowledge and/or observations, could the education facility alter any historical, archaeological, cultural heritage traditional (sacred, ritual area) site or require excavation near same?Yes ___________ No ____________

In the event of a chance find, please contact the appropriate authorities:- Regional Bureau of Culture and Tourism for chance finds encountered at the

regional level;- The Authority of Research, Conservation and Cultural Heritage (ARCCH) for

chance finds encountered at the federal level.

Resettlement and/or Land Acquisition

Will involuntary resettlement, land acquisition, relocation of property, or loss, denial or restriction of access to land and other economic resources be caused by project implementation?Yes ___________ No _________________

If “Yes” Involuntary Resettlement OP 4.12 is triggered. Please refer to the Resettlement Policy Framework (RPF) for appropriate mitigation measures to be taken.

Loss of Crops, Fruit Trees and Household Infrastructure

Will the project result in the permanent or temporary loss of crops, fruit trees and household infra-structure (such as granaries, outside toilets and kitchens, livestock shed etc)?

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Yes ____________ No ______________

Block of access and routes or disrupt normal operations in the general area

Will the project interfere or block access, routes etc (for people, livestock and wildlife) or traffic routing and flows?Yes ____________ No ______________

Noise and Dust Pollution during Construction and Operation

Will the operating noise level from the operation of equipment, machinery etc. used during rehabilitation exceed the allowable noise limits?Yes ___________ No _______________

Will the construction result in emission of significant amounts of dust or hazardous fumes?Yes ___________ No _______________

Will the operation result in emission of significant amounts of dust or hazardous fumes?

Yes ___________ No _______________

Degradation and/or depletion of resources during construction and operation

Will the operation involve use of considerable amounts of natural resources (construction materials, water spillage, land, energy from biomass etc.) or may lead to their depletion or degradation at points of source?Yes ___________ No _______________

Will the quarries have to be rehabilitated?Yes ____________________ No________________________

Solid or Liquid Wastes

Will the project generate solid or liquid wastes? (including human excreta/sewage, hospital waste, asbestos, PCB)Yes _______________ No ______________

If “Yes”, does the project include a plan for their adequate collection and disposal?Yes _______________No._____________________

Are there guidelines for the safe disposal of asbestos?Yes ________________ No ______________

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Public Health

Will the project contribute to an increase in malaria due to an increase in water supply?Yes: ____________________No._______________

Describe the current situation regarding malaria, assess potential impacts due to the project, and recommend an appropriate mitigation measure_______________________________________________________

Occupational health hazards

Will the project require large number of staff and laborers?Yes ________________ No ______________

Will the project require a large/long-term construction camp?Yes ________________ No ______________

Are the project activities prone to hazards, risks and could result in accidents and injuries to workers during construction or operation?Yes ________________ No ______________

Could project activities result in accidents and injuries to third parties during construction or operation?Yes ________________ No ______________

Will the project require frequent maintenance and or repairYes ________________ No ______________

Public Consultation

Has public consultation and participation been sought?Yes ______________ No _______________

Document meetings in the Meeting Form and attach to this ESSF.

PART C: General Mitigation Measures

For all “Yes” responses, describe briefly the mitigation measures taken in order to meet the compliance requirements of the World Bank and/or GOE, whichever are more stringent.

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Identified Impact Mitigation

RECOMMENDATIONS:

Based on the above, the proposed project will fall under:

(a) Category C and it will not require any environmental work; project implementation therefore can precede immediately________

(b) Category B 1 and it will require the implementation of simple mitigation measures as per Environmental and Social Checklist (Annex 3)________

(c) Has been categorized as category B 2 and will require preparation of a separate EA report; (for generic EA terms of reference refer to Annex 4)_______

Note: Projects assigned the environmental category A as a result of the environmental and social screening process will have to be either redesigned or dropped as these projects cannot be funded under ESTDP because the latter has been assigned the environmental category B.

Prepared by (name, position, signature):------------------------------------------------

Date:--------------------------------------------

Reviewed by (name, position, signature):-----------------------------------------------------

Date:---------------------------------------------

Cleared by (name, position, signature):--------------------------------------------------------

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Annex 3: Environmental and Social ChecklistThis checklist will be used by qualified personnel in the process of screening the investments for potential environmental and social impacts of the ESTDP. Activities such as road construction, rehabilitation of tourism centers, enhancing provision of portable water, imposition of conservation measures etc. Filling each section with the relevant checklist of questions as yes and no and proposing relevant mitigation measures will lead to decisions regarding the application of the proposed mitigation measures.

ESTDP activity

Potential issues Yes No If Yes

Road construction

Will there be a problem of dust pollution?

Municipality/Site Officer to ensure that Environmental Guidelines for Contractors are followed

Restore indigenous habitats of the project sites

Ensure proper disposal of wastes and test water quality if necessary

Implement the RPF

Plant indigenous vegetation that are ecologically suitable

Will there be a problem of noise pollution?

Will there be loss of vegetation?

Will there likely be water and/or soil pollution?

Will there be a problem of resettlement and/.or loss of livelihoods?Will there be increased soil erosion?

Building of communal facilities

Will there be loss of vegetation? Ensure that construction design and location takes in to account measures that help avoid substantial loss of indigenous habitats

Restore as appropriate indigenous habitats

Ensure presence and operation of waste treatment facilities

Ensure waste storage and discharge is not going to pollute ground and surface water sources

Implement RPF

Ensure activities are carried out in accordance with the UNESCO Guidelines

Will there be a threat of contamination/pollution of rivers/lakes and other wetlands?Will there be a negative impact on soil micro-organisms/invertebrates/plant roots?Will there be a negative impact on ground water/springs/streams?Will there be a resettlement and/or loss of livelihoods problem?Will there be an effect that diminishes the cultural/historical significance of edifices and their general environment?

Provision of portable water?

Will there be a threat of imbalance in availability and consumption?

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Annex 4: Environmental Guidelines for Contractors

Contractor(s) hired for civil works would be required to incorporate applicable environmental mitigation measures. In addition, as applicable, contractors will also adhere to the following guidelines.

General:

1. These general environmental guidelines apply to any work to be undertaken under the Sustainable Tourism Development Project (STDP). For certain work sites entailing specific environmental and/or social issues, a specific Environmental and Social Impact Assessment, including an Environmental and Social Management Plan (ESMP), has been prepared to address the above-mentioned specific issues in addition to these general environmental guidelines.

In addition to these general Environmental Guidelines, the Contractor shall therefore comply with any specific ESMP for the works he is responsible for. The Contractor shall be informed by the Client about such an ESMP for certain work sites, and prepare his work strategy and plan to fully take into account relevant provisions of that ESMP. If the Contractor fails to implement the approved ESMP after written instruction by the works supervisor to fulfill his obligation within the requested time, the Client reserves the right to arrange for execution of the missing action by a third party on account of the Contractor.

2. Notwithstanding the Contractor’s obligation under the above clause, the Contractor shall implement all measures necessary to avoid undesirable adverse environmental and social impacts wherever possible, restore work sites to acceptable standards, and abide by any environmental performance requirements specified in an ESMP where such an ESMP applies.

3. These Environmental Guidelines, as well as any specific ESMP, apply to the Contractor. They also apply to any sub-contractors present on Project work sites at the request of the Contractor with permission from the Client.

General Environmental Protection Measures4. In general, environmental protection measures to be taken at any work site shall include but not be limited to:

(a) Minimize the effect of dust on the environment resulting from earth mixing sites, vibrating equipment, construction related traffic on temporary or existing access roads, etc. to ensure safety, health and the protection of workers and communities living in the vicinity of work sites and access roads.

(b) Ensure that noise levels emanating from machinery, vehicles and noisy construction activities (e.g. excavation, blasting) comply with Ethiopian standards and are generally kept at a minimum for the safety, health and protection of workers within the vicinity of high noise levels and nearby communities.

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(c) Ensure that existing water flow regimes in rivers, streams and other natural or irrigation channels are maintained and/or re-established where they are disrupted due to works being carried out.

(d) Prevent any construction-generated substance, including bitumen, oils, lubricants and waste water used or produced during the execution of works, from entering into rivers, streams, irrigation channels and other natural water bodies/reservoirs.

(e) Avoid or minimize the occurrence of standing water in holes, trenches, borrow areas, etc…

(f) Prevent and minimize the impacts of quarrying, earth borrowing, piling and building of temporary construction camps and access roads on the biophysical environment including protected areas and arable lands; local communities and their settlements. Restore/rehabilitate all sites to acceptable standards.

(g) Upon discovery of graves, cemeteries, cultural sites of any kind, including ancient heritage, relics or anything that might or believed to be of archeological or historical importance during the execution of works, immediately report such findings to the Client so that the Ministry in charge of Culture may be expeditiously contacted for fulfillment of the measures aimed at protecting such historical or archaeological resources.

In the event that the Contractor encounters chance finds during construction and/or rehabilitation activities, he will contact (a) the Regional Bureau of Culture and Tourism for chance finds encountered at the regional level; and (b) the Authority of Research, Conservation and Cultural Heritage (ARCCH) for chance finds encountered at the federal level. Should there be no Regional Bureau of Culture and Tourism, the Contractor will contact the ARCCH in Addis Ababa directly.

(h) Prohibit construction workers from engaging in the exploitation of natural resources such as hunting, fishing, and collection of forest products or any other activity that might have a negative impact on the social and economic welfare of the local communities. Prohibit explicitly the transport of any bush meat in Contractor’s vehicles.

(i) Prohibit the transport of firearms in Project-related vehicles.

(j) Prohibit the transport of third parties in Project-related vehicles.

(k) Implement soil erosion control measures in order to avoid surface run off and prevent siltation, etc.

(l) Ensure that garbage, sanitation and drinking water facilities are provided in construction workers camps.

(m) Ensure that, in as much as possible, local materials are used to avoid importation of foreign material and long distance transportation.

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(n) Ensure public safety, and meet Ethiopian traffic safety requirements for the operation of work to avoid accidents.

(o) Ensure that any trench, pit, excavation, hole or other hazardous feature is appropriately demarcated and signposted to prevent third-party intrusion and any safety hazard to third parties.

(p) Comply with Ethiopian speed limits, and for any traffic related with construction at STDP sites, comply with the following speed limits unless Ethiopian speed limits are lower:

Inhabited areas: 50 km/h Open road: 90 km/h.

(q) Ensure that, where unskilled daily-hired workforce is necessary, such workers are hired from neighboring communities.

(r) Generally comply with any requirements of Ethiopian law and regulations.

5. Besides the regular inspection of the sites by the supervisor appointed by the Client for adherence to the Contract conditions and specifications, the Client may appoint an environmental inspector to oversee the compliance with these environmental conditions and any proposed mitigation measures. State or Regional Environmental Authorities may carry out similar inspection duties. In all cases, as directed by the Client’s supervisor, the Contractor shall comply with directives from such inspectors.

Drilling6. The Contractor will make sure that any drilling fluid, drilling mud, mud additives, and any other chemicals used for drilling at any STDP construction site complies with Ethiopian health and safety requirements. In general, only bio-degradable materials will be used. The Contractor may be required to provide the detailed description of the materials he intends to use for review and approval by the Client. Where chemicals are used, general prescriptions of the World Bank’s safeguard policy OP 4.09 “Pest Management” shall be complied with.

7. Drilling fluids will be recycled or disposed of in compliance with Ethiopian regulations in an authorized disposal site. If drilling fluids cannot be disposed of in a practical manner, and if land is available near the drilling site that is free of any usage rights, the Contractor may be authorized to dispose of drilling fluids near the drilling site. In this occurrence, the Contractor will be required to provide to the Client due evidence of their total absence of potential environmental impacts, such as leachate tests certified by an agreed laboratory. In this case, drilling fluids will be dried at site, mixed with earth and spread at site.

8. Any site affected by drilling work will be restored to its initial condition. This applies to drilling pads, access roads, staging areas, etc… Topsoil will be stripped ahead of any earthmoving, stored near the construction site, and replaced in its original location after the recontouring of the area affected by the works.

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9. Where successive aquifers are intersected by the drilling works, and upon order by the work supervisor, the Contractor may be required to take measures to isolate aquifers from contamination by each other.

10. The Contractor will take all measures to avoid bacteriological or chemical contamination of the intersected aquifers by the drilling equipment. Similarly, the Contractor will take all measures to avoid bacteriological or chemical contamination of the intersected aquifers from the surface by providing an adequately sealed well-head.

11. When greasing drilling equipment, the Contractor will avoid any soil contamination. In the event of a limited hydrocarbon spill, the Contractor will recover spilled hydrocarbons and contaminated soils in sealed drums and dispose of them in an authorized waste management facility.

12. Unless duly requested by the Contractor and authorized by the supervisor, no servicing of drilling equipment or vehicles is permitted at the drilling site.

Pipelines13. No trench shall be left open for more than 7 days, unless duly authorized by the supervisor upon Contractor’s request. Trenches and other excavation works shall be demarcated and/or signposted to avoid third party intrusion.

14. General conditions related with topsoil stripping, storage and restoration apply.

15. The Contractor will take measures to dispose of water used for pressure tests in a manner that does not affect neighboring settlements.

Waste Management16. All drums, containers, bags, etc. containing oil/fuel/surfacing materials and other hazardous chemicals shall be stored at construction sites on a sealed and/or bonded area in order to contain potential spillage. All waste containers, litter and any other waste generated during the construction shall be collected and disposed off at designated disposal sites in line with applicable Ethiopian government waste management laws/regulations.

17. All drainage and effluent from storage areas, workshops, housing quarters and generally from camp sites shall be captured and treated before being discharged into the drainage system in line with applicable government water pollution control regulations.

18. Used oil from maintenance shall be collected, properly stored in sealed containers, and either disposed of appropriately at designated sites or be re-cycled.

19. Entry of runoff into construction sites, staging areas, camp sites, shall be restricted by constructing diversion channels or holding structures such as berms, drains, dams, etc. to reduce the potential of soil erosion and water pollution.

20. Construction waste shall not be left in stockpiles along the road, but removed and reused or disposed of on a daily basis.

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21. Where temporary dump sites for clean excavated material are necessary, they shall be located in areas, approved by the Client’s supervisor, where they will not result in supplemental erosion. Any compensation related with the use of such sites shall be settled prior to their use.

22. Areas for temporary storage of hazardous materials such as contaminated liquid and solid materials shall be approved by the supervisor and appropriate local and/or relevant national or local authorities before the commencement of work. Disposal of such waste shall be in existing, approved sites.

Quarries and Borrow Areas23. The Contractor shall obtain appropriate licenses/permits from relevant authorities to operate quarries or borrow areas. The location of quarries and borrow areas shall be subject to review and approval by relevant local and national authorities.

24. New extraction sites:

a) Shall not be located less than 1km from settlement areas, archaeological areas, cultural sites – including churches and cemeteries, wetlands or any other valued ecosystem component, or on high or steep ground.

b) Shall not be located in water bodies, or adjacent to them, as well as to springs, wells, well fields.

c) Shall not be located in or near forest reserves, natural habitats or national parks.

d) Shall be designed and operated in the perspective of an easy and effective rehabilitation. Areas with minimal vegetation cover such as flat and bare ground, or areas covered with grass only or covered with shrubs less than 1.5m in height, are preferred.

e) Shall have clearly demarcated and marked boundaries to minimize vegetation clearing and safety hazards for third parties.

25. Vegetation clearing shall be restricted to the area required for safe operation of construction work. Vegetation clearing shall not be done more than two months in advance of operations.

26. Stockpile areas shall be located in areas where trees or other natural obstacles can act as buffers to prevent dust pollution, and generally at a distance from human settlements. Wind shall be taken into consideration when siting stockpile areas. Perimeter drains shall be built around stockpile areas.

27. The Contractor shall deposit any excess material in accordance with the principles of these guidelines, and any applicable ESMP, in areas approved by local authorities and/or the supervisor.

Rehabilitation of Work and Camp Sites

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28. Topsoil shall be stripped, removed and stored for subsequent rehabilitation. Soils shall not be stripped when they are wet. Topsoil shall not be stored in large or high heaps. Low mounds of no more than 1 to 2m high are recommended.

29. Generally, rehabilitation of work and camp sites shall follow the following principles:

- To the extent practicable, reinstate natural drainage patterns where they have been altered or impaired.

- Remove toxic materials and dispose of them in designated sites. Backfill excavated areas with soils or overburden that is free of foreign material that could pollute groundwater and soil.

- Ensure reshaped land is formed so as to be stable, adequately drained and suitable for the desired long-term land use, and allow natural regeneration of vegetation.

- Minimize erosion by wind and water both during and after the process of reinstatement.

- Compacted surfaces shall be deep ripped to relieve compaction unless subsurface conditions dictate otherwise.

Management of Water Needed for Construction Purposes30. The Contractor shall at all costs avoid conflicting with water needs of local communities. To this effect, any temporary water abstraction for construction needs from either ground or surface water shall be submitted to the following community consultation process:

- Identification of water uses that may be affected by the planned water abstraction,

- Consultation with all identified groups of users about the planned water abstraction,

- In the event that a potential conflict is identified, report to the supervising authority.

This consultation process shall be documented by the Contractor (minutes of meeting) for review and eventual authorization of the water withdrawal by the Client’s supervisor.

31. Abstraction of both surface and underground water shall only be done with the consultation of the local community as mentioned and after obtaining a permit from the relevant authority.

32. Abstraction of water from wetlands is prohibited.

33. Temporary damming of streams and rivers is submitted to approval by the supervisor. It shall be done in such a way as to avoid disrupting water supplies to communities downstream, and to maintain the ecological balance of the river system.

34. No construction water containing spoils or site effluent, especially cement and oil, shall be allowed to flow into natural water drainage courses. Similarly, wash water from washing out of equipment shall not be discharged into water courses or road

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drains. Washing bays shall be sited accordingly. Unless site conditions are not favorable, it will generally be infiltrated through soak pits or similar.

35. Site spoils and temporary stockpiles shall be located away from the drainage system, and surface run off shall be directed away from stockpiles to prevent erosion.

Traffic Management and Community Safety36. Location of temporary access roads shall be done in consultation with the local community and based on the screening results, especially in important or sensitive environments. Temporary access roads shall not traverse wetland areas or other ecologically sensitive areas. The construction of any access roads shall be submitted to a prior consultation process with potentially affected communities that will have to be documented (minutes of meetings) for supervisor’s review and approval.

37. Upon the completion of civil works, all temporary access roads shall be ripped and rehabilitated.

38. Measures shall be taken to suppress dust emissions generated by Project traffic.

39. Maximum speed limits for any traffic related with construction at STDP sites shall be the following, unless Ethiopian speed limits are locally lower:

- Inhabited areas: 50 km/h- Open road: 90 km/h.

Salvaging and Disposal of Obsolete Components Found by Rehabilitation Works40. Obsolete materials and construction elements such as electro-mechanical equipment, pipes, accessories and demolished structures shall be salvaged and disposed of in a manner approved by the supervisor. The Contractor has to agree with the supervisor which elements are to be surrendered to the Client’s premises, which will be recycled or reused, and which will be disposed of at approved landfill sites.

41. Any asbestos cement material that might be uncovered when performing rehabilitation works will be considered as as hazardous material and disposed of in a designated facility.

Compensation of Damage to Property42. Compensation of land acquired permanently for Project purposes will be handled under Client responsibility based on the provisions of the RPF. However, in the event that the Contractor, deliberately or accidentally, damages property, he shall repair the property to the owner’s satisfaction and at his own cost. For each repair, the Contractor shall obtain from the owner/user a certificate that the damage has been made good satisfactorily in order to indemnify the Client from subsequent claims.

43. In any case where compensation for inconveniences, damage of crops etc. are claimed by the owner, the Client has to be informed by the Contractor through the supervisor.

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Contractor’s Health, Safety and Environment Management Plan (HSE-MP)44. Within 6 weeks of signing the Contract, the Contractor shall prepare an HSE-MP to ensure the adequate management of the health, safety, environmental and social aspects of the works, including implementation of the requirements of these general conditions and any specific requirements of an ESMP for the works. The Contractor’s EHS-MP will serve two main purposes:

45. The Contractor’s HSE-MP shall provide at least:- a description of procedures and methods for complying with these

general environmental management conditions, and any specific conditions specified in an ESMP;

- a description of specific mitigation measures that will be implemented in order to minimize adverse impacts;

- a description of all planned monitoring activities and the reporting thereof; and

- the internal organizational, management and reporting mechanisms put in place for such.

46. The Contractor’s HSE-MP will be reviewed and approved by the Client before start of the works. This review should demonstrate if the Contractor’s HSE-MP covers all of the identified impacts, and has defined appropriate measures to counteract any potential impacts.

HSE Reporting47. The Contractor shall prepare bi-monthly progress reports to the Client on compliance with these general conditions, the project ESMP if any, and his own HSE-MP. The Contractor’s reports will include information on:

- HSE management actions/measures taken, including approvals sought from local or national authorities;

- Problems encountered in relation to HSE aspects (incidents, including delays, cost consequences, etc. as a result thereof);

- Non-compliance with contract requirements on the part of the Contractor;

- Changes of assumptions, conditions, measures, designs and actual works in relation to HSE aspects; and

- Observations, concerns raised and/or decisions taken with regard to HSE management during site meetings.

48. The reporting of any significant HSE incidents shall be done as soon as practicable. Such incident reporting shall therefore be done individually. The Contractor should keep his own records on health, safety and welfare of persons, and damage to property. It is advisable to include such records, as well as copies of incident reports, as appendixes to the bi-monthly reports. Details of HSE performance will be reported to the Client.

Training of Contractor’s Personnel49. The Contractor shall provide sufficient training to his own personnel to ensure that they are all aware of the relevant aspects of these general conditions, any project ESMP, and his own HSE-MP, and are able to fulfill their expected roles and functions. Specific training will be provided to those employees that have particular

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responsibilities associated with the implementation of the HSE-MP. Training activities will be documented for potential review by the Client.

50. Amongst other issues, training will include an awareness session for all employees on HIV-AIDS addressing the following topics:

- What is HIV/AIDS?- How is HIV/AIDS contracted?- HIV/AIDS prevention.

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Annex 5: Terms of Reference for Environmental Impact Assessment

Scope of Work for Typical Environmental and Social Impact Assessment includes:

Initial consultation: with the implementing agency (identify the implementing agency), with the EPA at federal level, with the regional EPA, with the World Bank’s country office,

Review of the regulatory and policy background: Based on Ethiopian pieces of legislation and regulation identified in the

ESMF, the Consultant will identify any relevant changes occurred since the time the ESMF was prepared, and identify the practical implications thereof in preparing the ESIA,

Based on World Bank policies identified as applicable in the ESMF, the Consultant will review any relevant changes and identify practical implications thereof,

The Consultant will summarize in the ESIA report the applicable regulatory and policy background with a focus on practical implications in terms of:

ESIA process, including public consultation and disclosure, ESIA scope of work, Contents of the ESIA report

Project description: Based on documentation prepared by the implementing agency, the

Consultant will prepare a brief project description, with a focus on those physical components of the project that may entail environmental and/or social impacts,

The Consultant will prepare a brief summary of the project description for purpose of presenting the project to identified interested parties;

Public consultation: The Consultant will implement the following phases of public

consultation, in coordination with the implementing agency, which may be willing to participate in this public consultation process:

Identification of interested parties (beneficiary neighboring communities, communities potentially affected by the project, downstream water users, local authorities, regional authorities);

Initial step of consultation, before further environmental assessment work is undertaken: one initial meeting with each of the identified parties, presenting the project and seeking input on the scope of work for further environmental assessment work;

Second step of consultation, after further environmental assessment work is complete: presentation of the results of the environmental assessment, including presentation of identified impacts and proposed mitigations, seeking input on these proposed environmental management measures; this second step will include dissemination to

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identified interested parties of a brief summary of the environmental assessment in local language;

Any public consultation meeting undertaken by the Consultant will be documented using the form appended to these Terms of Reference;

Main issues raised during consultation meetings will be summarized in the ESIA report, with a description of the manner in which these issues were addressed in the ESIA process;

Baseline assessment: The baseline assessment will address:

Physical and bio-physical environment (climate, topography at the project site(s), geology, hydrogeology, surface water, soils, erosion sensitivity, flora, fauna, including the identification of any protected or endangered species),

Land use at the project site(s) and in its (their) vicinity, Human environment: description of neighboring communities

(population size, population structure and demography, socio-political organization, livelihoods, access to public services),

The baseline assessment will be summarized using the format presented in the “typical ESIA report structure” hereunder;

Reports of field observations and bibliography used will be presented as appendices;

Impact assessment: The methodology for impact assessment shall be briefly presented; Typically, impacts will be assessed along the following lines:

Extension in space, Duration in time, Probability of occurrence, Magnitude

The combination of these parameters will be summarized in an all-encompassing measure of “significance”, which will be the basis for impact assessment and prioritization of mitigations;

Where changes in the project design (such as the re-siting or re-routing of a project facility) may allow to eliminate one or several identified impacts, these changes (and generally any project alternative) will be discussed;

Mitigations and ESMP: Based on the typical Environmental and Social Management Plan

(ESMP) presented in the WSS Environmental and Social Management Framework and the guidance provided at mid-term, the Consultant will develop a project ESMP, which will include as a minimum for each identified impact:

A description of the mitigation measures, A description of monitoring measures, Implementation responsibilities, Cost, Assessment of residual impact after implementation of the mitigation; If any changes to the Environmental Guidelines for Construction

Contractors are warranted, the Consultant will propose such changes. Deliverables:

The Consultant will produce:

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A summary project description in local language for purposes of public consultation (see above),

A draft 1 ESIA report for submission to the Client and the World Bank, After initial Client’s and World Bank’s comments have been included in a

revised version, a draft 2 ESIA report, including a brief summary in local language for purposes of public consultation,

After public consultation results have been included, a final ESIA report will be publicly disclosed in Ethiopia and at the World Bank’s Infoshop.

Typical Structure of an EIA Report

Cover page Table of contents List of acronyms Executive summary Introduction

Scope of the EIA Team in charge of the EIA, with list of consultants involved and task of

each Summary of requirements applying to the EIA: General Ethiopian legal requirements ESMF requirements & guidance per Project Implementation Manual RPF requirements Other World Bank requirements if applicable Time frame for implementation of the EIA

Description of the Proposed Development Project Technical components, including description of the methods used for

construction and operation Outline of the main alternatives Project decommissioning at the end of the operation period Implementation arrangements Implementation schedule and cost

EIA Methods Terms of Reference of the EIA, and process through which they were

arrived at Description of the methods used for the EIA, including description of field

investigations, mathematical models, social investigations, available literature

Description of standards and guidelines used Statement on the extent of involvement Identification of information gaps and uncertainties

Consultation Identification of interested parties Description of consultation with affected parties (timeframe, methods) Main issues arising from consultation and how they were addressed in

the ESIA process

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Description of the baseline environmental, socio-economic and health conditions

Focus of the baseline assessment depending on the nature of the project and on its likely impacts

Description of the physical environment (climate, topography, geology, hydrogeology, surface water, soils in the project area)

Flora and fauna – brief description of the baseline situation at the project site, with a specific focus on endangered species if any, and assessment of the general biodiversity situation in the project area

Description of the human environment: Identification of neighboring communities, description thereof –

demography, socio-political organization), Land use pattern, land tenure, and related social organization, Livelihoods Water usages Noise Health situation

Project Impacts Generally, prediction and assessment of each impact at all stages of the

project cycle for each alternative, including, but not limited to; Construction phase Employment Impact on land use Impact on flora and fauna, with a specific focus on endangered species if

any Noise and Vibration Dust Impact on ground water quality Impact on surface water quality (related with erosion at the vicinity of the

work site for example) Impact on surface water usage Impact on ground water usage Impact on soils (compaction by drilling equipment, removal of top soil) Potential uses of the environment that will be affected Operation phase Impact on ground water levels, flow and quality Impact on surface water (quantity - flow, quality) Impact on surface water usage with a focus on potential conflicts

between upstream and downstream users if relevant Impact on ground water usage Impact of changes in water regimes on flora and fauna, and bio-diversity

in general, with a specific focus on wet zones if any Potential uses of the environment that will be affected Decommissioning phase Summary table assessing the significance of each identified impact in

terms of magnitude, extension, duration or frequency of occurrence and probability of occurrence

Consultation Process

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Description of the consultation process (who was consulted, how, when) Results: main issues raised and how they are addressed in the project

design and in the EIA in general

Mitigation Measures Table showing for each identified impact at each of the main three

phases of the project the proposed mitigation measures, with narrative justifying them

Table showing the residual impacts once the mitigation measures are implemented

Monitoring & Evaluation Table showing for each identified impact the monitoring measures that

will be taken, with indication of indicators used, frequency of measurement, frequency of reporting and any relevant details on the methods to be used for collecting and treating monitoring data

Environmental and Social Management Plan (ESMP) Table showing for each identified impact both the mitigation and the

monitoring measures proposed in the EIA, with for each the implementation arrangements, including responsibilities for implementation, the timeframe, and the budgetary implications.

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Annex 6: Summary of the World Bank’s Safeguard Policies

Policy Number Key Objectives Tools/ImplicationsOP/BP 4.01 Environmental Assessment

The objective of this policy is to ensure that Bank-financed projects are environmentally sound and sustainable, and that decision-making is improved through appropriate analysis of actions and of their likely environmental impacts. This policy is triggered if a project is likely to have potential (adverse) environmental risks and impacts on its area of influence. OP 4.01 covers impacts on the natural environment (air, water and land); human health and safety; physical cultural resources; and transboundary and global environment concerns.

Depending on the project, and nature of impacts a range of instruments can be used: EIA, environmental audit, hazard or risk assessment and environmental management plan (EMP).When a project is likely to have sectoral or regional impacts, sectoral or regional EA is required. The Borrower is responsible for carrying out the EA.

Since the locations and potential adverse localized impacts of projects could not be identified prior to the appraisal of the ESTDP, the Borrower has prepared an Environmental and Social Management Framework (ESMF).

OP/BP 4.04 Natural Habitats

This policy recognizes that the conservation of natural habitats is essential to safeguard their unique biodiversity and to maintain environmental services and products for human society and for long-term sustainable development. The Bank therefore supports the protection, management, and restoration of natural habitats in its project financing, as well as policy dialogue and economic and sector work. The Bank supports, and expects borrowers to apply, a precautionary approach to natural resource management to ensure opportunities for environmentally sustainable development. Natural habitats are land and water areas where most of the original native plant and animal species are still present. Natural habitats comprise many types of terrestrial, freshwater, coastal, and marine ecosystems. They include areas lightly modified by human activities, but retaining their ecological functions and most native species.

This policy is triggered by any project (including any project under a sector investment or financial intermediary) with the potential to cause significant conversion (loss) or degradation of natural habitats, whether directly (through construction) or indirectly (through human activities induced by the project).

Projects that could have a negative impact on natural habitats will not be funded under the STDP.

OP/BP 4.36 Forests The objective of this policy is to assist borrowers to harness the potential of forests to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development and protect the vital local and global environmental services and values of forests. Where forest restoration and plantation development are necessary to meet these objectives, the Bank assists borrowers with forest restoration

This policy is triggered whenever any Bank-financed investment project (i) has the potential to have impacts on the health and quality of forests or the rights and welfare of people and their level of dependence upon or interaction with forests; or (ii) aims to bring about changes in the management, protection or utilization of natural forests or plantations.

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Policy Number Key Objectives Tools/Implicationsactivities that maintain or enhance biodiversity and ecosystem functionality. The Bank assists borrowers with the establishment of environmentally appropriate, socially beneficial and economically viable forest plantations to help meet growing demands for forest goods and services.

ESTDP will not fund any projects that will have negative impacts on forests.

OP 4.09 Pest Management

The objective of this policy is to (i) promote the use of biological or environmental control and reduce reliance on synthetic chemical pesticides; and (ii) strengthen the capacity of the country’s regulatory framework and institutions to promote and support safe, effective and environmentally sound pest management. More specifically, the policy aims to (a) Ascertain that pest management activities in Bank-financed operations are based on integrated approaches and seek to reduce reliance on synthetic chemical pesticides (Integrated Pest Management (IPM) in agricultural projects and Integrated Vector Management (IVM) in public health projects. (b) Ensure that health and environmental hazards associated with pest management, especially the use of pesticides are minimized and can be properly managed by the user. (c) As necessary, support policy reform and institutional capacity development to (i) enhance implementation of IPM-based pest management and (ii) regulate and monitor the distribution and use of pesticides.

The policy is triggered if: (i) procurement of pesticides or pesticide application equipment is envisaged (either directly through the project, or indirectly through on-lending, co-financing, or government counterpart funding); (ii) the project may affect pest management in a way that harm could be done, even though the project is not envisaged to procure pesticides. This includes projects that may (i) lead to substantially increased pesticide use and subsequent increase in health and environmental risk; (ii) maintain or expand present pest management practices that are unsustainable, not based on an IPM approach, and/or pose significant health or environmental risks.

ESTDP will not fund any activities that will involve pest management.

OP/BP 4.11Physical Cultural Resources

The objective of this policy is to assist countries to avoid or mitigate adverse impacts of development projects on physical cultural resources. For purposes of this policy, “physical cultural resources” are defined as movable or immovable objects, sites, structures, groups of structures, natural features and landscapes that have archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Physical cultural resources may be located in urban or rural settings, and may be above ground, underground, or underwater. The cultural interest may be at the local, provincial or national level, or within the international community.

This policy applies to all projects requiring a Category A or B Environmental Assessment under OP 4.01, project located in, or in the vicinity of, recognized cultural heritage sites, and projects designed to support the management or conservation of physical cultural resources.

ESTDP will not fund any projects that will have negative impacts on cultural resources.

In the event of chance finds, please contact the appropriate authorities: (i) the Regional Bureau of Culture and Tourism for chance finds encountered at the regional level; (ii) the Authority of Research, Conservation and Cultural Heritage (ARCCH) for chance finds encountered at the federal level. If

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Policy Number Key Objectives Tools/Implicationsthere is no Regional Bureau of Culture and Tourism, contact the ARCCH directly.

OP/BP 4.10 Indigenous Peoples

The objective of this policy is to (i) ensure that the development process fosters full respect for the dignity, human rights, and cultural uniqueness of indigenous peoples; (ii) ensure that adverse effects during the development process are avoided, or if not feasible, ensure that these are minimized, mitigated or compensated; and (iii) ensure that indigenous peoples receive culturally appropriate and gender and intergenerationally inclusive social and economic benefits.

The policy is triggered when the project affects the indigenous peoples in the project area.

ESTDP will not fund any projects that negatively affect the lives of indigenous peoples.

OP/BP 4.12 Involuntary Resettlement

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

This policy covers not only physical relocation, but any loss of land or other assets resulting in: (i) relocation or loss of shelter; (ii) loss of assets or access to assets; (iii) loss of income sources or means of livelihood, whether or not the affected people must move to another location.This policy also applies to the involuntary restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of the displaced persons.

Since the locations and potential adverse localized impacts of projects could not be identified prior to the appraisal of the ESTDP, the Borrower has prepared and disclosed a Resettlement Policy Framework (RPF).

OP/BP 4.37 Safety of Dams

The objectives of this policy are as follows: For new dams, to ensure that experienced and competent professionals design and supervise construction; the borrower adopts and implements dam safety measures for the dam and associated works. For existing dams, to ensure that any dam that can influence the performance of the project is identified, a dam safety assessment is carried out, and necessary additional dam safety measures and remedial work are implemented.

This policy is triggered when the Bank finances: (i) a project involving construction of a large dam (15 m or higher) or a high hazard dam; and (ii) a project which is dependent on an existing dam. For small dams, generic dam safety measures designed by qualified engineers are usually adequate.

ESTDP will neither fund projects involving the construction of dams, nor the construction of projects that would depend on a functioning dam..

OP 7.50 Projects in International Waters

The objective of this policy is to ensure that Bank-financed projects affecting international waterways would not affect: (i) relations between the Bank and its borrowers and between states (whether

This policy is triggered if (a) any river, canal, lake or similar body of water that forms a boundary between, or any river or body of surface water that flows through two or more

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Policy Number Key Objectives Tools/Implicationsmembers of the Bank or not); and (ii) the efficient utilization and protection of international waterways.

The policy applies to the following types of projects: (a) Hydroelectric, irrigation, flood control, navigation, drainage, water and sewerage, industrial and similar projects that involve the use or potential pollution of international waterways; and (b) Detailed design and engineering studies of projects under (a) above, include those carried out by the Bank as executing agency or in any other capacity.

states, whether Bank members or not; (b) any tributary or other body of surface water that is a component of any waterway described under (a); and (c) any bay, gulf strait, or channel bounded by two or more states, or if within one state recognized as a necessary channel of communication between the open sea and other states, and any river flowing into such waters.

ESTDP has not triggered this policy, and will not fund any investments that could negatively impact international water sources.

OP 7.60 Projects in Disputed Areas

The objective of this policy is to ensure that projects in disputed areas are dealt with at the earliest possible stage: (a) so as not to affect relations between the Bank and its member countries; (b) so as not to affect relations between the borrower and neighboring countries; and (c) so as not to prejudice the position of either the Bank or the countries concerned.

This policy is triggered if the proposed project will be in a “disputed area”. Questions to be answered include: Is the borrower involved in any disputes over an area with any of its neighbors. Is the project situated in a disputed area? Could any component financed or likely to be financed as part of the project be situated in a disputed area?

ESTDP will not fund any projects in disputed areas.

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Annex 7: List of individuals/institutions contacted

Institution Name AddressAmhara Region Culture and Tourism Offica

Ato Wagaw Hailu Bahirdar

Amhara Region Parks Authority Ato Birhanu Gebre BahirdarLalibela Wereda Culture and Tourism Office

Ato Belete Wedaje Lalibela

Private investor Ato Fikru LalibelaA farming woman Yimrhane KiristosA farming man Yimrhane KiristosA school administrator Yimrhane KiristosA priest Yimrhane KiristosAxum Tourism and Culture office Ato Redae Tesfaye AxumA tourist LalibelaBale Mountains National Park Ato Awel Haji Adem DinshooDinsho Wereda Agriculture Office Ato Shibru Dinshoo

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Annex 8: Key References

EWNHS. 1996. Important Bird Areas of Ethiopia. Ethiopian Wildlife and Natural History Society, Addis Ababa.

The World Bank Operational Manual Bank Procedures Environmental Assessment BP 4.01 January 1999

The World Bank Operational Manuel Bank Procedures Environmental Assessment BP 4.01 Annex A January 1999

The World Bank Operational Manual Operational Policies OP 4.01 Environmental Assessment January 1999

The World Bank Operational Manual Operational Policies OP 4.01 Annex C Environmental Management Plan January 1999

Environmental policy of Ethiopia (1997) Environmental Protection Organs Establishment Proclamation (Proclamation

No. 295/2002), Environmental Impact Assessment Proclamation (Proclamation No.

299/2002), Environmental Pollution Control Proclamation (Proclamation No. 300/2002), Solid waste management proclamation Draft Industrial Pollution Prevention and Control Regulation, Draft Industrial Environmental Policy and Strategy, Industrial Sector Strategy, Proclamation 2/01/1981 for the control of air pollution Proclamation 217/1981 for the control of water pollution Proclamation 94/1994 legislation on Forest Conservation Legal Notice No. 445 of 1970 on Wildlife Conservation Special Decree No.20/1990 on Pesticide Control Proclamation No. 137/1998 on Pesticide control Plant Quarantine Council of Minister’s Regulation 4/1992 Proclamation No. 52/1993 Mining Proclamation Regulation No.182/1994 Law on Mining and energy operations

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