9 Power Africa EWA IEE_Final.pdf

Empower West Africa (EWA) IEE 1

INITIAL ENVIRONMENTAL EXAMINATION

DOCUMENT PURPOSE

This Initial Environmental Examination (IEE) is the required pre-implementation review for the Empower West Africa (EWA) program which is designed to increase the availability of and access to affordable, reliable, sustainable, and clean energy in West Africa. The activity will cover all intervention points for energy development from training to business development to contributing to funding of specific energy infrastructure.

PROJECT/ACTIVITY DATA

Project/Activity Name: Empower West Africa (EWA) Geographic Location(s) (Country/Region): West Africa Amendment (Yes/No), if Yes indicate # (1, 2...): No Implementation Start/End Date (FY or M/D/Y): July 2024 - December 2029 If Amended, specify New End Date: N/A Solicitation/Contract/Award Number(s): TBD Implementing Partner(s): TBD Bureau Tracking ID: Power Africa (EWA) IEE https://ecd.usaid.gov/document.php?doc_id=60833 Tracking ID of Related RCE/IEE (if any): None Tracking ID of Other, Related Analyses: None

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit(s):

(e.g., Mission, Bureau, or Office)

Power Africa

Other Affected Operating Unit(s): N/A Lead BEO Bureau: AFR Bureau Funding Account(s) (if available): DA Prepared by: Power Africa Date Prepared: 16 September 2023

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Analysis Type: ☒Environmental Examination ☐Deferral Environmental Determination(s): ☒Categorical Exclusion(s)

☒Negative https://ecd.usaid.gov/document.php?doc_id=60833

Empower West Africa (EWA) IEE 2

☒Positive ☐Deferred (per 22 CFR 216.3(a)(7)(iv)

IEE Expiration Date (if applicable): March 31, 2030 Additional Analyses/Reporting Required: EMMP, EA Climate Risks Identified (#): Low ___8___ Moderate ___5___ High ___1___ Climate Risks Addressed (#): Low ___8___ Moderate ___5___ High ___1___

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

PROJECT/ACTIVITY SUMMARY

The purpose of the Empower West Africa (EWA) program is to increase the availability of and access to affordable, reliable, sustainable, and modern electricity in West Africa. This program will connect more West African homes, businesses, and institutions to electricity on the grid and beyond the grid; reduce greenhouse gas emissions from the energy sector by supporting cleaner electricity generation delivered by the grid and accelerating distributed renewable energy (DRE);

and, working in partnership with the Power Africa Coordinators Office, USAID Missions in West Africa, West African governments, and regional institutions, improve the enabling environment for energy sector investment (including climate finance), energy trade, and innovations in the energy sector.

EWA will be delivered through targeted advisory services, technical assistance, capacity strengthening, catalytic grants, and investment mobilization to a range of energy sector institutions including government ministries, utilities, regulators, private sector energy companies and their trade groups, investors, multilateral organizations and initiatives, academic institutions and/or civil society organizations.

EWA seeks to strengthen and expand grids to deliver more power to the end user. EWA also seeks to mitigate critical barriers to attracting and sustaining necessary investment in electrical power generation, transmission, and distribution. Mitigating these barriers will facilitate an expanded supply of and access to affordable and reliable grid-based and beyond the grid electricity services in West Africa.

ENVIRONMENTAL DETERMINATIONS

Twenty four illustrative sub-activities identified for EWA have been grouped into four corresponding Intervention Categories (as mapped in Table 2). The threshold environmental determinations for the Intervention Categories are listed in Table 1 below. Upon approval of this document, the determinations become affirmed, per Agency regulations (22 CFR 216).

TABLE 1: ENVIRONMENTAL DETERMINATIONS BY INTERVENTION CATEGORY

Intervention Categories Threshold Determinations

1. Training - except hands-on

● Classroom training

Categorical Exclusion about:blank about:blank about:blank about:blank

Empower West Africa (EWA) IEE 3

Intervention Categories Threshold Determinations

● Meetings, workshops

● Onsite observational training

2. Technical assistance for business processes

● Power supply and demand analyses

● Financial analyses

● Financing strategies

● Market assessments

● Regulatory analysis or support

Categorical Exclusion

3. Technical assistance leading to specific projects.

● Transaction advisory services

● Preparation of tender documents or investment contracts

● Developing project design criteria.

● Site selection

● Closure/remediation of fossil fuel generation plants

Negative Determination

4. Direct support or funding for specific projects

● Mini-grids

● PUE projects

● Standalone solar PV systems

● Diesel backup systems

● Distribution lines

● Advance energy projects

Negative Determination or Positive Determination

SUMMARY OF CONDITIONS

Screening: All interventions with a Negative Determination and Positive Determination require use of a screening tool to evaluate potential environmental and social impacts and to develop specific mitigation measures to reduce any impacts below the level of significance. Intervention Category 3 has a Negative Determination. Intervention Category 4 may have either a Negative or Positive Determination.

The Implementing Partner (IP) shall develop a screening tool with the appropriate level of detail to adequately assess the potential environmental and social impacts of the interventions in the IP’s approved work plan. The screening tool may be developed for site-specific interventions or for one or more categories of similar interventions. The screening tool will be approved by the A/COR, Power Africa MEO (Mission Environmental Officer), and the AFR BEO.

CLIMATE RISK MANAGEMENT

Section 4.2 summarizes the methodology used and findings of the Climate Risk Management (CRM) Screening performed in accordance with ADS 201mal. In consultation with the Climate Integration Lead (CIL), the project design team considered the potential effect of climate risks/stressors on the sustainability of the project (changing precipitation patterns, rising temperature, floods, droughts, fires, landslides, etc.). See Annex 1 for the complete CRM table.

West Africa's energy sector is facing climate risks that include extreme weather like storms, flooding, and landslides, which can damage energy infrastructure and hamper critical activities

Empower West Africa (EWA) IEE 4 such as training and technical assistance. Energy facilities might suffer from power outages due to damaged generation and transmission assets, disrupting essential evaluations and inspections.

Climate effects like excessive rainfall can destroy vital infrastructure and extreme heat may result in dangerous work conditions and reduced efficiency of solar PV systems. Moreover, about 20% of West Africa's electricity is generated by hydropower, which is vulnerable to climate-induced variations in rainfall and river flow, while thermal power plants, supplying around 80% of electricity, face challenges from rising temperatures and changing rainfall that affect cooling and steam generation, as well as coastal risks like flooding and saltwater intrusion. Despite these challenges, West Africa has the opportunity to shift towards renewable energy sources such as solar, wind, and biomass, which can provide more resilient and diverse energy options, although these solutions also come with challenges related to costs, policy, and technical feasibility.

Construction activities are generally assigned a high climate risk. However, construction in this activity primarily falls into design assistance and small-scale construction for the purposes of environmental review. Solar PV systems could be included in this project and are identified as construction for environmental review but do not meet the threshold for construction under FAR 36 (i.e, architect-engineering services contracting).

BEO SPECIFIED CONDITIONS OF APPROVAL

Reporting Conditions: The AFR BEO requests that the activity managers/AORs/CORs upload this document to the appropriate sub-folder(s) of the Environmental Compliance Library (EC Library) Google Drive folder. In addition, implementation documents such as Environmental Mitigation and Monitoring Plans (EMMPs), sub-project screening documents, etc., should be maintained in this EC Library folder. Using this common folder will facilitate access by all parties who need these documents, including the Mission Environmental Officer and the AOR/COR, as well as the REA and the BEO Team.

IMPLEMENTATION

In accordance with 22 CFR 216 and Agency policy, this document's conditions and requirements become mandatory upon approval. This includes the relevant limitations, conditions, and requirements in this document, as stated in Sections 3, 4, and 5 of the IEE and any BEO Specified Conditions of Approval.

https://drive.google.com/drive/folders/1q7HGMzgopJ-MuKxkQEJ4GSPp9R7Qzv-5?usp=sharing https://drive.google.com/drive/folders/1q7HGMzgopJ-MuKxkQEJ4GSPp9R7Qzv-5?usp=sharing

Empower West Africa (EWA) IEE 5

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION

PROJECT/ACTIVITY NAME: Empowering West Africa (EWA)

Bureau Tracking ID: https://ecd.usaid.gov/document.php?doc_id=60833

Approval: /s/ David Thompson 11/01/2023

David Thompson, Acting Power Africa Coordinator Date

Clearance: /s/ Michael Oppong-Adjei 10/30/2023

Michael Oppong-Adjei, Contracting Officer’s Representative

(COR)

Date

Clearance: /s/ Veronica Lee 10/30/2023

Veronica Lee, Acting Energy Office Director Date

Clearance: /s/ Nivann Govindasamy 10/26/2023

Nivann Govindasamy, Mission Environmental Officer Date

Clearance: /s/ Daniel Hollander 10/30/2023

Daniel Hollander, Acting Program Office Director Date

Clearance:

/s/ Lisa Witte

10/31/2023

Lisa Witte, Acting Deputy Coordinator Date

Clearance: /s/ Henry Aryeetey 10/27/2023

Henry Aryeetey, Regional Environmental Advisor, West Africa Date

Clearance: /s/ Tashiana Osborne 11/07/2023

Tashiana Osborne, AFR Bureau Climate Integration Lead Date

Concurrence: /s/ Brian Hirsch 11/07/2023

Brian Hirsch, AFR Bureau Environmental Officer Date

DISTRIBUTION:

https://ecd.usaid.gov/document.php?doc_id=60833

Empower West Africa (EWA) IEE 6

INITIAL ENVIRONMENTAL EXAMINATION

CONTENTS

1.0 PROJECT/ACTIVITY DESCRIPTION 7

1.1 PURPOSE OF THE IEE 7

1.2 PROJECT/ACTIVITY OVERVIEW 7

1.3 PROJECT/ACTIVITY DESCRIPTION 7

2.0 BASELINE ENVIRONMENTAL INFORMATION 11

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT

(ENVIRONMENT, PHYSICAL, CLIMATE, SOCIAL, THREATENED AND

ENDANGERED SPECIES) 11

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER

INTERNATIONAL STANDARDS (E.G. WHO), ENVIRONMENTAL AND SOCIAL

LAWS, POLICIES, AND REGULATIONS 14

2.3 COUNTRY/MINISTRY/MUNICIPALITY ENVIRONMENTAL CAPACITY

ANALYSIS (AS APPROPRIATE) 15

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK 16

4.0 ENVIRONMENTAL DETERMINATIONS 18

4.1 RECOMMENDED ENVIRONMENTAL DETERMINATIONS 18

4.2 CLIMATE RISK MANAGEMENT 20

5.0 CONDITIONS AND MITIGATION MEASURES 25

5.1 CONDITIONS 25

5.2 AGENCY CONDITIONS 26

5.3 ADDITIONAL CONDITIONS 27

5.4 MITIGATION MEASURES 28

6.0 LIMITATIONS OF THIS INITIAL ENVIRONMENTAL EXAMINATION 33

7.0 REVISIONS 35

Annex 1. Activity Climate Risk Management Summary Table 36

Empower West Africa (EWA) IEE 7

1.0 PROJECT/ACTIVITY DESCRIPTION

1.1 PURPOSE OF THE IEE

The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22 CFR 216), is to provide a preliminary review of the foreseeable effects on the environment of the USAID intervention described herein and recommend determinations and, as appropriate, conditions, for these activities. Upon approval, these determinations become affirmed, and specified conditions become mandatory obligations of implementation. This IEE also documents the results of the Climate Risk Management process in accordance with Climate Risk Management process's results per USAID policy (specifically, ADS 201mal).

This IEE is a critical element of USAID’s mandatory environmental review and compliance process to achieve environmentally sound design and implementation. Potential environmental impacts should be addressed through formal environmental mitigation and monitoring plans (EMMPs) and/or Environmental Assessments (EAs), if needed.

1.2 PROJECT/ACTIVITY OVERVIEW

The purpose of the Empower West Africa (EWA) program is to increase the availability of and access to affordable, reliable, sustainable, and clean energy in West Africa to reach measurable economic growth and development outcomes, such as reducing poverty, improving livelihoods, and increasing inclusive access to electricity enabled services in such areas as health, education, and food security. The activity will support the accelerated connection of more homes, businesses, and institutions in the region to electricity and increase its productive use; reduce greenhouse gas emissions from the energy sector by supporting cleaner electricity generation delivered by the grid and accelerating distributed renewable energy (DRE); support the transition of host government’s resource planning, leading to the adoption and integration of renewable energy sources and solutions to meet climate action commitments; crowd-in new technologies and innovations that scale access and impact; and increase access to private capital investment, including improved uptake of climate funds, while working in partnership with West African governments to improve the enabling environment for energy sector investment and innovation.

1.3 PROJECT/ACTIVITY DESCRIPTION

Table 2 below lists the tasks and sub-activities under each of EWA’s four (4) outcomes and maps each sub-activity to one of the following four intervention categories:

1. Training- excluding hands-on (3 illustrative sub-activities)

● Classroom training

● Meetings, workshops

● Onsite observational training

2. Technical assistance for business processes (16 illustrative sub-activities)

● Power supply and demand analyses

● Financial analyses

● Financing strategies

● Market assessments

● Regulatory analysis or support https://www.usaid.gov/our_work/environment/compliance/22cfr216 https://www.usaid.gov/ads/policy/200/201mal

Empower West Africa (EWA) IEE 8

3. Technical assistance for specific projects (2 illustrative sub-activities)

● Transaction advisory services

● Preparation of tender documents or investment contracts

● Developing project design criteria.

● Site selection

● Closure/remediation of fossil fuel generation plants

4. Direct support or funding for specific projects (3 illustrative sub-activities)

● Mini-grids

● PUE projects

● Standalone solar PV systems

● Diesel backup systems

● Distribution lines

● Advance energy projects

Refer to Tables 3, 4 and 5 for identified potential environmental impacts, recommended environmental determinations and mitigation measures for each Intervention Category.

TABLE 2: ILLUSTRATIVE ACTIVITIES AND INTERVENTION CATEGORIES

Illustrative Activities Intervention Category

Outcome 1 – Optimizing utility performance to increase access

Task 1.1: Enhance the capacity of utilities to reduce commercial and collection losses and increase the positive cash flow of the utilities Sub-activity 1.1.1: Provide technical assistance to electric utility companies to implement business strategies and improve business management practices toward electricity loss reduction activities, including supporting the utility to make improvements to customer relations and services, billing and collections, operations and maintenance, financial and investment planning, capacity building and training, skills transfer, as well as a broad range of operational and administrative improvements.

2. Technical assistance for business processes

Task 1.2: High impact solutions to reduce technical losses

Sub-activity 1.2.1: Identify technical challenges that impact operational efficiency of the utility, or part of the utility supply area.

2. Technical assistance for business processes

Sub-activity 1.2.2: Develop strategies such as grid infrastructure upgrades and grid reliability metrics.

2. Technical assistance for business processes

Task 1.3: Promote the use of demand side management and energy efficiency strategies.

Sub-activity 1.3.1: Provide technical advisory services to improve on or develop demand side management/energy efficiency strategies and promote implementation of these strategies.

2. Technical assistance for business processes

Task 1.4: Provide technical and advisory support to lower the up-front cost of connection and/or household wiring.

Sub-activity 1.4.1: Provide technical, analytic, and business advisory support to relevant stakeholders including distribution utilities to identify and assess opportunities to lower the upfront cost of connection.

2. Technical assistance for business processes

Empower West Africa (EWA) IEE 9

Illustrative Activities Intervention Category

Sub-activity 1.4.2: Provide targeted technical support to help relevant officials revise end-user payment structures.

2. Technical assistance for business processes

Outcome 2 – Off-grid generation and connections increased

Task 2.1: Engage with rural electrification agencies and offgrid companies to expand the number of minigrid and standalone energy systems deployed and utilized Sub-activity 2.1.1: Provide transaction advisory services and technical assistance to renewable energy minigrid (including hybrid systems) and standalone energy companies to increase availability and access to finance, utilization rate of commissioned minigrid systems, profitability of minigrid systems and standalone solar companies.

2. Technical assistance for business processes

Sub-activity 2.1.2: Develop catalytic grant programs that unlock opportunities including leveraging other sources of capital, and technology demonstration/pilots that promote new innovative renewable technologies and/or business models.

4. Direct support or funding for specific projects

Task 2.2: Increase the adoption of productive use equipment.

Sub-activity 2.2.1: Support interventions that increase service hours or improve access to clients (from small to large industrial and commercial clients) whose businesses, agricultural activities, or other livelihood-supporting endeavors would benefit from or become more productive with improved electricity supply.

4. Direct support or funding for specific projects

Sub-activity 2.2.2: Develop interventions to both utilities and offgrid companies that increase the uptake of appliances or increase electricity consumption in a way that supports income generation for end users across appropriate electricity demand sectors of the economy.

4. Direct support or funding for specific projects

Outcome 3 – Transition to clean energy development and deployment accelerated

Task 3.1: Deliver transaction advisory support to the development of new clean energy generation capacity.

Sub-activity 3.1.1: Provide targeted transaction advisory assistance to relevant private sector actors (including, but not limited to, developers, sponsors, suppliers, and investors), to help advance new clean generation capacity.

2. Technical assistance for business processes

Task 3.2: Support the transition and investment plan for cleaner energy production.

Sub-activity 3.2.1: Contribute to government initiatives, policy documents, and activities that support a transition to a cleaner energy production with attributable emission reduction impact.

2. Technical assistance for business processes

Outcome 4 – Private sector investment and innovation in the energy sector enhanced for domestic and regional infrastructure

Task 4.1: Provide support to Planning/Regulatory institutions that advance power infrastructure transactions and cross-border power trade.

Sub-activity 4.1.1: Provide technical assistance and transaction advisory support to national Ministries of Energy and other relevant government agencies for improving energy sector regulation, strategic planning, improving quality assurance standards, building capacity of utility and service providers, strengthening skills transfer, strengthening holistic rural electrification plans with on- and off-grid delineations, and strengthening implementation of sound policies and strategies.

2. Technical assistance for business processes

Task 4.2: Support national and regional generation and transmission planning efforts.

Empower West Africa (EWA) IEE 10

Illustrative Activities Intervention Category

Sub-activity 4.2.1: Provide a range of technical, analytic, and advisory assistance to entities responsible for energy sector planning to improve generation and transmission planning in West Africa.

2. Technical assistance for business processes

Sub-activity 4.2.2: Provide targeted assistance to develop, review, and/or strengthen specific planning aspects including planning horizons, demand projections, timelines, consideration of least-cost solutions, and alignment with other elements of energy sector planning (including electrification, upstream development, regional, etc.).

2. Technical assistance for business processes

Sub-activity 4.2.3: Provide technical assistance to help relevant entities develop integrated energy sector plans.

2. Technical assistance for business processes

Task 4.3: Provide analyses and advisory services to advance national transition efforts from fossil fuel to clean energy.

Sub-activity 4.3.1: Provide technical assistance and analytical support to help relevant stakeholders assess, identify, and/or pursue plans for transitioning from reliance on fossil fuel generation to much cleaner sources such as solar, wind and hydro.

3. Technical assistance leading to specific projects

Sub-activity 4.3.2: Develop analyses related to factors including cost comparisons, timelines, and projected impacts on other infrastructure or development priorities.

3. Technical assistance leading to specific projects

Sub-activity 4.3.3: Develop reviews and/or revisions of existing planning documents. 2. Technical assistance for business processes

Sub-activity 4.3.4: Development and implement associated training and materials to share these analyses with relevant stakeholders.

1. Training - except hands-on

Task 4.4: Support legal and regulatory framework reforms for private sector investment.

Sub-activity 4.4.1: Provide a range of technical and advisory assistance to strengthen legal and regulatory frameworks

2. Technical assistance for business processes

Task 4.5: Promote gender equity, and the inclusion of marginalized communities in power sector planning.

Sub-activity 4.5.1: Develop activities and interventions including environmental mitigation and monitoring plans, gender analysis, among others impact analysis and remediation assessments to provide social and environmental safeguards against unintended and consequential impacts of developing electricity infrastructure projects.

2. Technical assistance for business processes

Task 4.6 Enhance Partnership Coordination

Sub-activity 4.6.1: Provide proactive outreach, coordination, and report dissemination to the larger Power Africa partnership network.

1. Training - except hands-on

Sub-activity 4.6.2: Facilitate in-person, virtual, or hybrid partner coordination events such as an annual partners meeting, invitations to work plan reviews, pause and reflect sessions, learning events, and any other such partners information sharing type activity.

1. Training - except hands-on

Will this project/activity involve construction1 as defined by ADS 201 and 303? Yes ☒ No ☐

1 Construction, as defined by ADS 201 and 303, includes: construction, alteration, or repair (including dredging and excavation) of buildings, structures, or other real property and includes, without limitation, improvements, renovation, alteration and refurbishment. The term includes, without limitation, roads, power plants, buildings, bridges, water treatment facilities, and vertical structures. In the box below, Empower West Africa (EWA) IEE 11

Construction and ancillary construction associated with mini-grids and back-ups, off-grids, Standalone Home Solar (SHS), and advanced technologies energy systems. Construction and ancillary construction for productive use of energy (PUE) projects supporting economic development sectors such as irrigation, grain milling, oil expelling, refrigeration, transport, and the operation of small businesses.

2.0 BASELINE ENVIRONMENTAL INFORMATION

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT, PHYSICAL,

CLIMATE, SOCIAL, THREATENED AND ENDANGERED SPECIES)

EWA activities will focus on priority countries within the West African Region, including Benin, Burkina Faso, Cameroon, Cape Verde, Chad, Côte d’Ivoire, Equatorial Guinea, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Senegal, Sierra Leone and Togo.

Environment

West Africa is a region with diverse and rich ecosystems, but also faces many environmental challenges. Some of the key issues affecting the state of the environment in West Africa are:

Biodiversity loss and habitat degradation: West Africa is home to some of the world's most biodiverse and endangered landscapes, such as the Guinean Forests, which host a high diversity of plants and animals. However, these ecosystems are under threat from increasing population, poverty, unsustainable and illegal land use practices, logging, climate change, poor governance, and ineffective policies. These threats have led to deforestation, fragmentation, overexploitation, and pollution of natural resources, which in turn affect the livelihoods and well-being of millions of people who depend on them2.

Water stress and hazards: Water is essential for life, health, food security and economic development. However, water resources in West Africa are limited and unevenly distributed, and face increasing pressure from climate variability and change, population growth, urbanization, industrialization, and agriculture. Many people in West Africa lack access to safe drinking water and sanitation services, which increases the risk of waterborne diseases and conflicts. Water stress also affects the productivity and sustainability of key sectors such as agriculture, energy, and tourism. Moreover, water-related hazards such as droughts and floods are becoming more frequent and severe due to climate change, causing loss of lives, property damage and displacement2.

Climate change impacts and adaptation: Climate change is a global phenomenon that has significant implications for West Africa. The region has experienced a warming trend since pre-industrial times (1850-1900), which is projected to continue in the future. This will result in changes in rainfall patterns, temperature extremes, sea level rise, ocean acidification and other climate variables. These changes will have diverse and complex impacts on the natural and human systems in West Africa, affecting their vulnerability and resilience. Some sectors most sensitive to climate change include agriculture, health, water resources, biodiversity, coastal zones, and human describe any construction planned for this project/activity. Refer to ADS 201maw for required Construction Risk Management procedures.

2 Environment - Biodiversity and Climate Change | West Africa Regional .... https://www.usaid.gov/west-africa-regional/environment-biodiversty-and-climate-change https://www.usaid.gov/sites/default/files/documents/1865/201maw.pdf https://www.usaid.gov/west-africa-regional/environment-biodiversty-and-climate-change https://www.usaid.gov/west-africa-regional/environment-biodiversty-and-climate-change

Empower West Africa (EWA) IEE 12 settlements. Therefore, there is a need for effective adaptation strategies and actions to reduce the risks and enhance the opportunities associated with climate change3.

These represent the main environmental issues facing the West Africa region today that are driven by the pressure of rapidly growing human populations. They pose serious challenges for the region’s development, food security, poverty alleviation, and human health. Therefore, it is important to implement effective policies and strategies to manage the population growth rate, conserve and restore natural resources, and promote sustainable development in West Africa.

However, there are also many opportunities and initiatives to address the said challenges. For instance, the African Union Commission (AUC) has developed several policies and frameworks to promote sustainable development and environmental management in the region4. The World Meteorological Organization (WMO) has also produced a series of reports on the state of the climate in Africa, providing scientific information and guidance for decision-making5.

Furthermore, there are many regional and national organizations, civil society groups, development partners and climate experts who are working together to protect the environment and improve the lives of people in West Africa.

West Africa has grasslands, also known as savannas, which cover about 40 percent of the region’s land area6. The grasslands of West Africa are not uniform, but vary in vegetation, climate, and soil conditions. Some of the main types of grasslands are Wet savanna, Dry savanna, Wooded savanna, and Shrub savanna, These grasslands are home to a rich diversity of plants and animals, including many iconic species such as elephants, lions, giraffes, and zebras. They are also important for the livelihoods of millions of people who depend on them for agriculture, grazing, and tourism.

West Africa’s grasslands are facing threats from human activities and environmental changes. The main challenges include land degradation and desertification, Biodiversity loss and habitat fragmentation, and climate change.

The grasslands are vital for the ecological balance and economic development of the region.

Therefore, it is essential to conserve and restore them by implementing effective policies and strategies that involve local communities, governments, nongovernmental organizations (NGOs), researchers, and international organizations.

West Africa is also home to the world’s significant tropical forests, which cover about 15% of the region’s land area. These forests are part of the Guinean Forests of West Africa biodiversity hotspot, which is one of the thirty-six most biologically rich and threatened regions in the world.

The Guinean Forests span eleven countries, from Guinea and Sierra Leone in the west to Cameroon and the island of Bioko in the east. These constitute two main blocks: the Upper Guinean Forests, which cover the coastal areas of West Africa, and the Lower Guinean Forests, which extend

3 West Africa - Wikipedia. https://en.wikipedia.org/wiki/West_Africa

4 Landscapes of West Africa: A Window on a Changing World https://www.usgs.gov/centers/eros/science/landscapes-west-africa-a-window-a-changing-world 5 State of Climate in Africa highlights water stress and hazards. https://public.wmo.int/en/media/press-release/state-of-climate-africa-highlights-water-stress-and-hazards 6 Savanna | African Grasslands, Wildlife & Climate | Britannica, https://www.britannica.com/science/savanna https://en.wikipedia.org/wiki/West_Africa https://www.usgs.gov/centers/eros/science/landscapes-west-africa-a-window-a-changing-world https://public.wmo.int/en/media/press-release/state-of-climate-africa-highlights-water-stress-and-hazards https://public.wmo.int/en/media/press-release/state-of-climate-africa-highlights-water-stress-and-hazards https://www.britannica.com/science/savanna

Empower West Africa (EWA) IEE 13 inland from Nigeria to Cameroon. These forests harbor more than 9,000 plant species, of which about 20% are endemic. They also support over 600 bird species, over 200 mammal species, and over 200 reptile and amphibian species, many of which are also endemic or endangered. Some of the iconic animals that live in these forests include the chimpanzee, the pygmy hippopotamus, the forest elephant, and the zebra duiker.

West Africa’s tropical forests are not only important for biodiversity, but also for human well-being. They provide livelihoods, food security, and cultural values for millions of people who depend on them for their survival. They also play a key role in regulating the climate, water cycle, and soil fertility of the region. However, these forests are under severe threat from deforestation, degradation, fragmentation, and climate change. According to a recent study, West Africa has lost about 80% of its original forest cover since 1900.

The main drivers of forest cover loss in the region are agriculture expansion, logging, mining, infrastructure development, and urbanization. These activities not only reduce the forest area, but also degrade its quality and connectivity, making it more vulnerable to fires, pests, diseases, and invasive species. To conserve and restore West Africa’s tropical forests, there is an urgent need for coordinated action among governments, civil society, private sector, and local communities.

Some of the strategies that can help protect these forests include creating and enforcing protected areas, promoting sustainable forest management, supporting community-based conservation initiatives, enhancing forest governance and law enforcement, reducing forest fires and illegal logging, restoring degraded lands, and integrating forest conservation into national development plans.

Population According to the United Nations Tuesday, September 19, 2023, estimates the current population of Western Africa is 442,251,7017. This represents a 4-fold increase in the last 50 years and is equivalent to 5.47% of the current total world population. The population density in West Africa is seventy-three (73) per Sq. Km. The largest country in West Africa by population is Nigeria, with about 223.8 million people. The smallest is Cape Verde with about 600,000 people.

West Africa has experienced accelerated urbanization, with cities hosting 48% of the population.

The population is mostly concentrated in the coastal areas, while landlocked countries experience lower density. 8 Economy West Africa is a region with diverse and dynamic economies.

Oil and gas are important sources of revenue and exports for Nigeria, which is the largest oil producer and exporter in Africa9. Other West African countries that produce oil and gas include Ghana, Senegal, Mauritania, Côte d’Ivoire, Equatorial Guinea, Gabon, and Congo. These countries

7 Population of Western Africa (2023) - Worldometer https://www.worldometers.info/world-population/western-africa-population/ 8 https://www.worldbank.org/en/region/afr/western-and-central-africa

9 https://www.globenewswire.com/news-release/2021/03/26/2199897/28124/en/West-Africa-Mining- Industry-Report-2020-with-Profiles-of-Aluminium-Corp-of-China-Barrick-Gold-and-Newmont-Mining- AngloGold-Ashanti-Iamgold.html https://www.worldometers.info/world-population/western-africa-population/ https://www.worldometers.info/world-population/western-africa-population/ https://www.worldbank.org/en/region/afr/western-and-central-africa https://www.globenewswire.com/news-release/2021/03/26/2199897/28124/en/West-Africa-Mining-Industry-Report-2020-with-Profiles-of-Aluminium-Corp-of-China-Barrick-Gold-and-Newmont-Mining-AngloGold-Ashanti-Iamgold.html https://www.globenewswire.com/news-release/2021/03/26/2199897/28124/en/West-Africa-Mining-Industry-Report-2020-with-Profiles-of-Aluminium-Corp-of-China-Barrick-Gold-and-Newmont-Mining-AngloGold-Ashanti-Iamgold.html https://www.globenewswire.com/news-release/2021/03/26/2199897/28124/en/West-Africa-Mining-Industry-Report-2020-with-Profiles-of-Aluminium-Corp-of-China-Barrick-Gold-and-Newmont-Mining-AngloGold-Ashanti-Iamgold.html https://www.globenewswire.com/news-release/2021/03/26/2199897/28124/en/West-Africa-Mining-Industry-Report-2020-with-Profiles-of-Aluminium-Corp-of-China-Barrick-Gold-and-Newmont-Mining-AngloGold-Ashanti-Iamgold.html https://www.globenewswire.com/news-release/2021/03/26/2199897/28124/en/West-Africa-Mining-Industry-Report-2020-with-Profiles-of-Aluminium-Corp-of-China-Barrick-Gold-and-Newmont-Mining-AngloGold-Ashanti-Iamgold.html

Empower West Africa (EWA) IEE 14 have varying degrees of dependence on the oil and gas sector, ranging from 3% to 60% of their

GDP.

Other countries rely on other sectors such as agriculture, mining, manufacturing, services, and tourism for their economic activities. For example, Burkina Faso is one of the fastest-growing economies in the region, driven by gold mining and agricultural exports. Benin is another example of a non-oil producing country that has achieved high economic growth rates in recent years, thanks to its diversified economy and improved business environment.

Minerals produced in West Africa include bauxite, coal, copper, diamonds, gemstones, gold, ilmenite, iron ore, lead, manganese, nickel, phosphate rock, rutile, silver, columbite-tantalite, tin, uranium, zinc, and zircon. There are many formal companies and artisanal miners engaged in the region’s mining sector. Some of them have recently discovered new oil and gas reserves or started production from existing fields, which could boost their economic growth and development prospects.

According to the latest data from the World Bank, the region’s economic growth rate fell to 3.8% in 2022, down from 4.4% in 2021, due to the impact of the Covid-19 pandemic, geopolitical tensions, and commodity price fluctuations. However, the 2023 West Africa Economic Outlook forecasts10 that the region will recover gradually and reach a 4.2% growth rate by 2024, driven by domestic demand, public investment, and improved trade conditions.

Some of the challenges that the region faces include extreme poverty and inequality, low human capital development, weak governance and institutions, and vulnerability to climate change and natural disasters. Opportunities that the region offers include abundant natural resources, a large and young population, a growing digital sector, and regional integration initiatives.

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER INTERNATIONAL

STANDARDS (E.G. WHO), ENVIRONMENTAL AND SOCIAL LAWS, POLICIES, AND REGULATIONS

West Africa has opportunities to advance sustainability and compliance with environmental, social, and governance (ESG) imperatives in the energy sector. Here are some of the reasons why:

West Africa is rich in renewable energy resources, such as solar, wind, hydro, and biomass, that can provide clean and affordable electricity for its growing population and economy. It is also a signatory to the Paris Agreement on climate change and has committed to reducing its greenhouse gas emissions and enhancing its resilience to climate impacts.

The region has a framework for cooperation and integration, led by the Economic Community of West African States (ECOWAS), that can facilitate the harmonization of policies, regulations, standards, and incentives for sustainable energy development. It can attract green, social, and sustainable (GSS) bonds, which are innovative financing instruments that direct funds to projects with positive environmental and social outcomes. GSS bonds can help fill the financing gap for sustainable development goals (SDGs) in the region11.

102023 West Africa Economic Outlook https://www.afdb.org/en/news-and-events/2023-west-africa-economic-outlook-regions-economic-growth-falls-medium-term-forecast-suggests-return-level-above-4- 63487

11 Africa Renewal Magazine - June-2022 https://www.afdb.org/en/news-and-events/2023-west-africa-economic-outlook-regions-economic-growth-falls-medium-term-forecast-suggests-return-level-above-4-63487 https://www.afdb.org/en/news-and-events/2023-west-africa-economic-outlook-regions-economic-growth-falls-medium-term-forecast-suggests-return-level-above-4-63487 https://www.afdb.org/en/news-and-events/2023-west-africa-economic-outlook-regions-economic-growth-falls-medium-term-forecast-suggests-return-level-above-4-63487 https://www.un.org/africarenewal/magazine/june-2022/green-bonds-serve-africa%E2%80%99s-sustainable-investment-needs#:%7E:text=Green%2C%20Social%2C%20and%20Sustainable%20%28GSS%29%20bonds%20market%20is,and%20peer%20sovereign%20issuers%20from%20across%20West%20Africa

Empower West Africa (EWA) IEE 15

West Africa can benefit from the support of development partners, such as the African Development Bank (AfDB), the World Bank, and the United Nations, that can provide technical assistance, capacity building, knowledge sharing, and funding for ESG initiatives in the energy sector. All West African countries are parties to the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement on climate change. Most West African countries are also parties to the Convention on Biological Diversity (CBD), the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), the Ramsar Convention on Wetlands and the World Heritage Convention.

To realize this opportunity, West African countries need to overcome some of the challenges and barriers that hinder their progress towards sustainability and compliance with ESG imperatives in the energy sector.

These challenges include: lack of adequate data and information on the environmental and social impacts of energy projects and activities; weak institutional capacity and coordination among relevant stakeholders at the national and regional levels; inadequate legal and regulatory frameworks and enforcement mechanisms for environmental and social safeguards; limited public awareness and participation in environmental decision-making processes; and high costs of capital and perceived risks for investing in green, sustainable, or social sectors.

To address these challenges, West Africa needs to adopt a holistic and integrated approach that considers the interlinkages between environmental, social, and governance aspects of energy development. Illustrative actions that can be taken include: Strengthening environmental and social impact assessment (ESIA) systems and practices to ensure that energy projects and activities comply with national and international standards and best practices; Enhancing policy dialogue and collaboration among ECOWAS member states and other regional bodies to harmonize ESG policies, regulations, standards, and incentives for the energy sector; Developing regional environmental governance mechanisms, such as regular environmental assessments, reporting systems, monitoring frameworks, and dispute resolution mechanisms; Promoting public awareness and education on ESG issues and opportunities in the energy sector through various media platforms and channels; Developing joint regional programmes and projects that address common ESG challenges and opportunities in the energy sector, such as climate change adaptation and mitigation, energy access and affordability, gender equality and social inclusion; and Mobilizing resources from domestic and external sources, including GSS bonds, for ESG initiatives in the energy sector.

2.3 COUNTRY/MINISTRY/MUNICIPALITY ENVIRONMENTAL CAPACITY ANALYSIS (AS

APPROPRIATE)

Power sector market development West Africa has a rapidly growing population and persistently high rates of poverty. It faces a prevalent energy conundrum that if solved, has the potential to unleash economic development, drive down poverty, and improve the quality of life of millions of the region’s population.

While West Africa has made great strides in electrification, there is still a long way to go to connect the entire region’s population and provide reliable and affordable energy. The region has immense electrical energy resources capable of meeting long term demand. But these are mostly in countries where there is a significant lack of the means and enabling conditions to develop them.

Empower West Africa (EWA) IEE 16

The energy sector in West Africa faces various challenges including low access to electricity, unreliable power supply, and high dependence on fossil fuels. Governance and regulation are key issues that influence the performance of the sector and the business operating environment. Energy utilities suffer from mismanagement and inefficiency. A lack of accountability and transparency nurtures corruption. These are serious and persistent problems, yet they are solvable, (see PwC report)12. Governance also affects the quality of public services, the rule of law, the protection of human rights, and the participation of citizens in decision-making.

Cross border cooperation and regulation Players for the development of regional energy trade in the West Africa region with environmental resources and capacity include:

● The Economic Community of West African States (ECOWAS) – a regional association that promotes cooperation among its fifteen member-states13, seeking to achieve collective self-sufficiency for its member.

● The ECOWAS Regional Electricity Regulatory Authority (ERERA) is the regulator of regional cross-border trade of electricity in West Africa and the regional regulator of cross border electricity interconnections in West Africa.

● The West African Power Pool (WAPP) - a specialized agency of ECOWAS that covers 14 of its 15 member countries14. WAPP’s aim is to interconnect the electricity grids of the member countries to facilitate the trading of electric power between the members.

● The ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) - a specialized agency of ECOWAS that aims to develop renewable energy sectors and technologies in West Africa

Implementing Partner requirements At the time of implementation, the implementing partner (IP) will review national environmental legislations and assess the capacity of host-country counterparts, primarily the national utilities (the generation, transmission, and distribution companies) and environmental authorities, to determine the level of environmental capacity that it will seek to strengthen within the terms of the contract’s scope of work and to the extent that funding permits.

12 PwC Publications/Africa-Business-Agenda/Operating-Environment-Perspective-2023

13 The 15 ECOWAS members are: Benin, Côte d'Ivoire, Burkina Faso, Ghana, Gambia, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Cape Verde, and Togo.

14 Excluding Cape Verde https://www.pwc.co.za/en/publications/africa-business-agenda/operating-environment-perspective-2023.html

Empower West Africa (EWA) IEE 17

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK

The mitigation measures presented in this section constitute the minimum required based on available information at the time of this IEE and the environmental analysis. These measures shall provide general direction for completing the project/activity Environmental Mitigation and monitoring plan (EMMP).

TABLE 3: POTENTIAL IMPACTS

Intervention Categories Potential environmental and social impacts

1. Training - except hands-on Classroom training Meetings, workshops Onsite observational training

Negligible adverse environmental impacts associated with these activities are foreseeable

2. Technical assistance for business processes Power supply and demand analyses Financial analyses Financing strategies Market assessments Regulatory analysis or support

Negligible adverse environmental impacts associated with these activities are foreseeable

3. Technical assistance leading to specific projects.

Transaction advisory services Preparation of tender documents or investment contracts Developing project design criteria.

Site selection Closure/remediation of fossil fuel generation plants

Transaction advisory services, including direct and indirect support of power generation and distribution projects at the utility or distributed energy scale, the implementation of which could including the following adverse environmental and social impacts:

● Overwhelmed institutional capacity for safeguard oversight hampered by substantial renewable energy project pipeline.

● Inadequate identification of sensitive environmental and social receptors or red flags during project site selection leading to the selection of unsuitable sites

● Site selection and project design unresponsive to in-country strategic environmental support strategies resulting in impacts on biodiversity.

● Loss and disturbance of areas including protected areas, areas of biodiversity concern or conservation significance, sensitive agricultural areas, and areas of cultural importance.

● Diminished ecosystem services of in sensitive habitats such as erosion control, water and air purification, fuel supply, and education

● Disturbance and loss of vulnerable and endangered wildlife during implementation and interaction and mortality of wildlife during operations

● Loss of sensitive habitat, species of conservation concern, and agricultural land

● Human displacement of people, triggering physical resettlement

● Loss of communal land and farmland, triggering economic resettlement

● Landscape intrusion and visual impacts through the implementation of infrastructure unrelated to the natural surroundings

● Air pollution and dust from vehicular and machinery sources during construction and during the operational stages of thermal power plants

● Water pollution and siltation during construction due to ineffective

Empower West Africa (EWA) IEE 18 waste management and erosion control

● Risk of fire, electrocution, and pollution from components such as PV panels and battery energy storage systems containing hazardous materials

● Improper disposal of components such as PV panels and battery energy storage systems at the end of their lifecycle presenting environmental health and safety risks

● Cumulative environmental effects resulting from several power projects implemented in similar areas or in combination with other developments.

● Stakeholder and community consultation not undertaken effectively or in accordance with good practices.

● Closure and rehabilitation activities of decommissioned fossil fuel generation facilities results in environmental and social impacts.

● Community and environmental health and safety…