Attachment J.3 IEE and Memo to File.pdf

U.S. Agency for International Development U.S. Embassy Madani Avenue, Baridhara Dhaka-1212, Bangladesh

Tel: (880-2) 885-5500 Fax: (880-2) 882-3648 www.usaid.gov/bd

Bangladesh Advancing Development and Growth through Energy (BADGE) Activity Memo to the File (MTF)

Development Objective DO4: Responsiveness to Climate Change Improved Country and/or Operating Unit

Bangladesh

Originating Office Economic Growth Office

Initial Environmental Examination (IEE)

Asia 19-013 IEE(https://ecd.usaid.gov/repository/pdf/51825.pdf) Energy IDIQ II 22 CFR 216 Deferral ASIA-OAPA Programmatic IEE Emerging Threats (COVID 19), (https://ecd.usaid.gov/repository/pdf/52764.pdf)

Activity Name Start/End Date

Bangladesh Advancing Development and Growth through Energy

(BADGE)

January 1, 2021 to December 31, 2025

Period of Coverage under current IEE Start/End Date

January 01, 2019 - December 31, 2023

Drafted By Shayan Shafi Funding Amount $ 15,000,000 Contract Award Number

TBD

I. Purpose:

The purpose of this MTF is to duly and timely recommend and establish that:

1. A new activity titled “Bangladesh Advancing Development and Growth through Energy (BADGE),” managed by the Economic Growth Office of USAID/Bangladesh, is covered by the Asia 19-013 IEE;

2. BADGE funding is within Asia 19-013 IEE LOP funding level;

3. BADGE is a task order under the E3 Bureau Energy IDIQ II, for which approved IEE/RCE has stipulated a “deferral,” and a condition of a supplemental environmental analysis, which is provided in this MTF;

4. The scope and nature of all activities proposed under the BADGE fall under Categorical Exclusion (CatEx) in accordance with 22 CFR 216.2(C)(2)(i,) (iii,)(v,)(xiv;)

5. For all activities under the CatEx, MEO/CIL reviews relevant scope of works/terms of

Asia 19-013-MTF-3 reference to ensure that environmental, social, climate change and other relevant aspects are fully incorporated therein;

6. For any potential procurement of electronic equipment an amendment to this MTF shall be prepared to ensure compliance with ADS 312, relevant laws and regulations of the Government of Bangladesh (GOB) and its obligations under ratified international agreements;

7. BADGE shall be implemented concurrently with the scope of the Categorical Exclusion Threshold Decision approved in Asia COVID 19 PIEE, Asia 20-042.

8. At the post-award conference, AOR and MEO/CIL shall explain the scope of this MTF to the implementing partner.

II. Background

Previously, USAID/Bangladesh has supported the country’s energy sector development for energy security, economic growth, and climate change mitigation through several activities. Over the past seven years, USAID has been collaborating with a number of stakeholders, both in-country and within the South Asia region, to increase adoption of renewable energy technologies and energy efficiency measures, to strengthen the regulatory climate of the energy sector in Bangladesh, promote clean energy development through technical assistance, capacity building, and incentive programs and promote regional energy security in South Asia.

Building on USAID’s past and ongoing interventions1, BADGE, a five-year, $15 million activity will continue to improve energy security and resilience in Bangladesh through better access to affordable, reliable, and sustainable energy systems and transparent and efficient energy markets.

Through the BADGE activity, USAID will support Bangladesh at a critical point as it endeavors to deploy advanced energy systems, implement more transparent and best-value procurement for energy methods, and increase the country’s participation in regional energy trade.

The BADGE activity supports the U.S Government’s Indo-Pacific Vision and specifically the Asia EDGE (Enhancing Development and Growth through Energy in Asia) initiative. This activity will be covered under the existing “Resilient Bangladesh” Project Appraisal Document (PAD), as amended. The BADGE activity was included in the Resilient Bangladesh PAD through an action memo (AM# 2020/04), that was approved on March 8, 2020. The Resilient Bangladesh PAD serves as the reference document for project authorization and subsequent implementation of USAID/Bangladesh Country Development Cooperation Strategy (CDCS) 2011- 2018 under the Development Objective 4: Strengthened Resilience to Natural Hazards.

The scope and nature of all interventions under this activity shall be limited to technical assistance to stakeholders and policy support to the GOB in the form of technical consultations, capacity

1 - Catalyzing Clean Energy in Bangladesh (CCEB) (Completed in September 2018)

- Rural Electrification and Renewable Energy Development (RERED)-II (Completed in June 2019)

- Bangladesh Wind Power Capacity Building activity (ongoing)

- Energy Regulatory Partnership Program (ongoing)

- Scaling Up Renewable Energy (SURE)/Bangladesh (ongoing) building, training, workshops and conferences, and information sharing and dissemination. All these activities fall under the environmental determination of Categorical Exclusion as per 22 CFR 216.

Table 1: Associated threshold decisions covered under this memorandum.

Planned Activity Types of Activities with Environmental Implications

Threshold Determination Remarks

Activity Name:

Bangladesh Advancing Development and Growth through Energy

(BADGE)

Implementer: TBD

LOP: January 1, 2021 to December 31, 2025

Funding Amount:

$ 15,000,000

Award Number: TBD

This activity is covered under the Asia 19-013 IEE to cover USAID/Bangladesh Strengthened Resilience to Natural Hazards Project, as amended.

A future IEE will likely cover the remainder of the funding period.

Also please refer to:

ASIA-OAPA

Programmatic IEE Emerging Threats

(COVID 19),

(https://ecd.usaid.gov/rep ository/pdf/52764.pdf)

All four work streams under the BADGE activity will have minimal environmental implications. The four work streams include:

- Create an enabling environment that is conducive for increased deployment of advanced energy technologies in Bangladesh.

- Provide technical support to energy institutions to increase operational and financial performance

- Support developing an efficient, transparent and competitive renewable energy market in Bangladesh

- Identify Bangladesh-specific needs and

- recommend interventions to facilitate Bangladesh’s

- participation in regional energy trades

CE (Categorical Exclusion) –Technical Assistance activities related to training and capacity building. No adverse environmental effect is anticipated.

With reference to ASIA- OAPA Programmatic IEE Emerging Threats (COVID 19), (https://ecd.usaid.gov/reposit ory/pdf/52764.pdf), this CE has additional requirements that these TA actions will be done maintaining social distancing, without direct contact with potentially affected people. In addition, Activity interventions will be conducted through video conferencing without gathering of any number of people in situ and without associated activities that are likely to have adverse environment, health or safety impacts.

If IP procures electronic equipment, like computers, etc. and transfers these to the beneficiary, a transfer document shall stipulate that these equipment shall be used in environment ally sustainable manner in accordance with respective manuals, and be disposed of at the end of useful life in accordance with applicable GOB laws and regulations.

Climate Risk Screening Analysis at the CDCS level for EG found that typical proposed interventions for the energy sector are moderate risk due to the nature of the climate risks, and adaptive capacity. In particular, adaptive challenges arise from the low capacity of the electricity infrastructure system to retain or restore services followed by an extreme event. Effective systems are not in place to monitor and identify damage and disruption to electricity infrastructure from extreme weather events. Climate change information is currently not being incorporated into strategic resource planning (e.g., maintenance and operations, infrastructure improvements, personnel and training) for electricity infrastructure services. Institutions, systems, and processes are not flexible and robust enough to manage electricity infrastructure to accommodate climate stressors. Technical and research organizations are not well equipped to train and support communities to adjust to climate impacts re: electricity infrastructure services.

Funding sources to address climate risks to electricity infrastructure assets and services are not currently available. The CDCS’ Climate analysis is under the process of approval. In addition, please refer to recent USAID analysis on climate risks.2

Table2. Climate risk management covered under this memorandum.

Defined or Anticipated Project Elements (Purpose/Sub-purpose, Area of Focus, or

Climate Risks - List key risks related to the project elements identified through

Risk Rating - Low/ Modera te/High

How Risks are Addressed at Project Level - Describe how risks have been addressed at the project level. If a decision has been

Further Analysis and Actions for Activity Design/ Implementation- Describe CRM measures to be integrated into activity design or

Opportuniti es to Strengthen Climate Resilience - Describe opportuniti es to

2 FRAGILITY AND CLIMATE RISKS IN BANGLADESH at:

https://pdf.usaid.gov/pdf_docs/PA00TBFJ.pdf, USAID/BANGLADESH COMPREHENSIVE RISK AND RESILIENCE ASSESSMENT at:

https://www.usaid.gov/sites/default/files/documents/1861/BNG_resilience_assessment_report_4 Apr2017_final.pdf, CLIMATE RISK PROFILE BANGLADESH at:

https://www.climatelinks.org/sites/default/files/asset/document/2018-02- Mar_CadmusCISF_Climate-Risk-Profile-Bangladesh.pdf, Climate Change Information Fact Sheet BANGLADESH at:

https://www.climatelinks.org/sites/default/files/asset/document/Bangladesh%20Climate%20Info %20Fact%20Sheet_FINAL.pdf, FAA 118/119 at:

https://www.usaid.gov/sites/default/files/documents/1865/Bangladesh-Tropical-Forests-and- Biodiversity-Assessment-2016.pdf, Climate Change and Education at:

https://www.unisdr.org/files/16355_climatechangeedbangladesh.pdf, CLIMATE CHANGE

AND COASTAL ZONES AN ANNEX TO THE USAID CLIMATE-RESILIENT

DEVELOPMENT FRAMEWORK at:

http://www.adaptationlearning.net/sites/default/files/resource-files/Coastal-Marine-Annex.pdf, http://sdwebx.worldbank.org/climateportal/countryprofile/doc/GFDRRCountryProfiles/wb_gfdrr _climate_change_country_profile_for_BGD.pdf , https://www.climatelinks.org/countries/bangladesh#climate-info

Activity/ Mechanism, etc.)

either the strategy or project level climate risk assessment.

made to accept the risk, briefly explain why.

implementation, including additional analysis, if applicable.

achieve developmen t objectives by integrating climate resilience or mitigation measures.

Bangladesh Advancing Development and Growth through Energy (BADGE)

Natural calamities may affect activity’s ability in conducting training/ capacity building and policy advocacy meetings.

Low The activity will include appropriate messaging and instructions, when applicable, in its training and orientations to prepare staff and beneficiaries on mitigating and managing climate change risks. The instructions and presentations will explain methods to assess and mitigate climate risks.

N/A USAID and its Implementin g Partner would work with other donors and the government to monitor and mitigate climate risks.

III. Revisions:

Pursuant to 22 CFR 2 16.3(a)(9), if new information becomes available which indicates that activities to be funded under the DO4 portfolio might have "major" and "significant" effect, or if additional activities are proposed that have not been assessed under this IEE that might be considered "major" and their effects significant, this categorical exclusion will be reviewed and revised and submitted to the Bureau Environmental Officer (BEO) for approval and, if appropriate, an environmental assessment will be prepared. It is the responsibility of the USAID Agreement Officer's Representative (AOR) to keep the Mission Environment Officer and the BEO informed of any new information or changes in the activity that might require revision of this IEE.

FROM:

-- SS --

Shayan Shafi, Senior Energy Advisor Office of Economic Growth

06/29/2020 Date

CLEARANCES:

____JSS_______________________

John Smith-Sreen EG Director

SS - Cleared by email Shahpar Selim Mission Environmental Officer USAID/Bangladesh

__07/07/2020_______ Date

7/7/2020______________ Date

_Cleared by email___________________________ Andrei Barannik

REA/SCA & OAPA

_7/15/2020_____________ Date

TO:

Teresa Bernhard, BEO/E3 Date

William Gibson, Asia BEO

Date

Distribution:

● Activity Files

● Mission Environmental Officer Tracking

● RLO

● OAA

William L Gibson Digitally signed by William L Gibson Date: 2020.07.23 08:48:08 -04'00'