(03). a0001 revised SoW C.6.docx

Statement of Work Sierra Leone Power Sector Infrastructure Feasibility Studies acronyms and abBreviations

DESCRIPTION

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Appendices

Table of COntents

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DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

INTRODUCTION

The Millennium Challenge Corporation (MCC) is a United States Government Agency established under the Millennium Challenge Act of 2003 (for more information on MCC, please visit www.mcc.gov). MCC works with developing countries and provides aid that reinforces sound political, economic, and social policies that promote poverty reduction through economic growth.

MCC Board of Directors selected Sierra Leone for compact development in December 2020, following the MCC Threshold Program, which was signed with the Government of Sierra Leone (GoSL) in 2015 and successfully completed in March 2021. Two projects were carried out in the power sector: Electricity Sector Reform Project and Regulatory Strengthening Project.

MCC has approved a grant of funds under the authority of Section 609(g) of the Millennium Challenge Act (609(g) Grant) for the purpose of procuring consulting services for feasibility and other studies necessary to advance development of an MCC Compact. The GoSL entity charged with leading compact development, the Sierra Leone Compact Development Unit (SLCDU), does not presently have the requisite fiscal and procurements in place to independently conduct the procurement and manage the contract. Therefore, MCC is procuring the consulting services. As such, MCC is the party contractually responsible for officially directing work, accepting deliverables and performing contract management actions, such as approving invoices. However, in order to be consistent with MCC’s model of country ownership and given that the 609(g) Grant is a grant to the GoSL to aide in compact development, the Contractor can expect to work in close coordination with SLCDU throughout the duration of the work. SLCDU will be responsible for obtaining and consolidating comments from power sector stakeholders in Sierra Leone on deliverables and will provide validation and comments to MCC.

BACKGROUND

The Sierra Leone Compact development process started in 2021 with a Constraints Analysis (CA) to identify the key constraints to economic growth in Sierra Leone. Working in close collaboration, MCC and the GoSL’s compact development team the Sierra Leone Compact Development Unit (SLCDU) identified power and food insecurity as the priority, binding constraints to growth in the country. Subsequently, the GoSL and MCC agreed to focus the Compact on the electricity sector, while evaluating opportunities to support the productive use of electricity in the food value chain.

The root cause analysis MCC and SLCDU conducted of the power constraint concluded that: “Sierra Leone has insufficient availability of affordable and reliable electricity to satisfy demand among households, businesses, and social institutions.” The four key challenges identified by MCC and SLCDU are (i) an unreliable power supply, (ii) the high cost of electricity, (iii) low access to electricity for productive use, and (iv) weaknesses in governance and institutional capacity within the power sector.

The root causes of these challenges include: (i) insufficient and costly generation sources, (ii) dilapidated and insufficient grid infrastructure that is susceptible to climate risks, (iii) need for technical capacity development in the sector institutions and (iv) the lack of financial viability of the sector (i.e. revenues are insufficient to cover costs, including operational and maintenance requirements as well as new investments). These root causes, which are interrelated, hinder the sustainable growth of the power sector, and deter much-needed private sector investment.

MCC received initial project proposals from SLCDU in February 2022, which proposed activities focusing on: (i) increase in lower-cost and low-carbon power supply, (ii) expansion of the transmission network, (iii) rehabilitation and expansion of grid access, including the promotion of the productive use of energy in the agriculture sector, and (iv) reform and capacity building in the sector that builds on the work done under the MCC Threshold Program. These proposals and subsequent discussions among MCC, SLCDU and key GoSL stakeholders serve as the basis for this feasibility assessments included in this scope of work. A number of the outputs of this assignment are required as inputs to the program design, costing, and economic return analysis that must be competed by Spring 2023, per the expected Compact development timeline.

MCC anticipates presenting the recommended program and supporting analyses to the MCC Investment Committee in June 2023. The Compact is expected to be signed in September 2023, and to Enter Into Force (EIF) twelve (12) to eighteen (18) months later. It should be noted that detailed project design activities and procurements can occur between Compact signing and EIF. However, award of construction/implementation contracts and subsequent implementation can only happen after EIF.

Once the Compact is approved, feasibility studies completed under this assignment will form the basis for subsequent detailed design of projects, as well as Environmental and Social Impact Assessments (ESIAs), Environmental and Social Management Plans (ESMPs), project-focused trafficking in persons (TIP) assessment, Social and Gender Integration Plan (SGIP) and Resettlement Action Plans (RAPs), all to be procured after Compact signature.

Sierra Leone Background Sierra Leone is a small, resource‐rich country with a population of roughly 7 million people. Sierra Leone has followed a path of post-conflict transition following its brutal civil war (1991-2002), which destroyed the country’s infrastructure and hampered it’s political, social, and economic development. Internal/urban migration (particularly to Freetown and the Western Area) has increased. The country is characterized by high poverty (57%), repeated exposure to economic shocks (the 2014-2016 Ebola crisis, commodity price shocks, the COVID19 pandemic), and the lingering impact of the civil war. Sierra Leone’s population is young (41.7% under 15), chiefly rural (62%, but urbanizing at ~3% per year), and comparatively undereducated (43% adult literacy rate).

Total poverty has fallen slightly since an earlier round of surveys in 2011, but urban areas accounted for nearly all the improvement. That said, owing to Sierra Leone’s rapid population growth, the total number of poor and extreme poor in Sierra Leone actually rose, concentrating mostly in rural areas. Indeed, rural populations currently experience poverty at twice the rate of their urban counterparts, 74% and 35% respectively. Meanwhile, growth in the economy has not favored the poor.

In greater Freetown, the highest per capita consumers also experienced the highest rates of consumption growth, ranging from 30% to 50% in the highest decile. In rural areas and small towns, changes in consumption hovered around zero for the lowest half of the distribution and barely reached 5% in the upper half. These results reflect worsening inequality in the country, with the Gini coefficient for income rising from 0.33 to 0.37 over the period 2011-2018. The country is ranked the 23rd most vulnerable and 46th least ready to adapt to climate change in the world and identified by the United Nations as one of the 50 Least Developed Countries characterised by social, economic, political, and environmental factors that pose a major challenge to the delivery of climate-resilient goods and services.

According to the World Bank, the strongest predictor of poverty in Sierra Leone is agricultural activity. Nearly 75% of agricultural households fall below the national poverty line, an outcome largely due to low productivity subsistence farming. Climate change poses further disruptions to food availability, reducing access and affecting quality. Food production is primarily rainfed, so any significant shift in the already intense rainfall pattern will further expose crop and land management, livestock, rural transport and storage, and food processing to extreme conditions, undermining sustainable food production. Conversely, the biggest contributor to poverty reduction is urban residence, whether by birth or through migration.

The Energy Sector as a Compact Focus Sierra Leone lacks sufficient power resources, in terms of generation, transmission, and distribution, to meet current demand or to support economic growth. The lack of reliable service and low access to service in the country has direct impacts on private sector investment, incomes, time use, and health.

In Sierra Leone, inadequate power supply and distribution infrastructure along with weak institutional governance regularly result in frequent and prolonged outages in Freetown and other urban centers. Much of the remaining population—this includes virtually all of Sierra Leone’s rural population—remains completely disconnected from the country’s main grid. As a result, per capita and per GDP unit consumption rates are among the lowest in the world.

The availability of a reliable and affordable supply of electricity is key to Sierra Leone’s Medium Term National Development Plan (2019-2023) to transform the economy and attain middle-income status by 2039. The Plan states that the expansion of critical electricity infrastructure is necessary for economic expansion, diversification, competitiveness, green growth and shared prosperity. Further, expansion and diversification of the economy requires increasing agricultural productivity and promoting commercial scale agro-processing as a priority. This is expected to create inclusive opportunities for income generation for different segments of the population, notably youth and women who constitute a significant proportion of actors in the mostly rural agricultural sector. Thus, increasing the supply of reliable and affordable power for productive use is critical for realizing the developmental aspirations of the country and fostering inclusive growth.

The power sector is governed by the National Electricity Act and the Sierra Leone Electricity and Water Regulatory Commission (EWRC) Act, both promulgated in 2011. Through the National Electricity Act, the sector was unbundled, creating separate entities for generation and transmission- Electricity Generation and Transmission Company (EGTC) and distribution- Electricity Distribution Supply Authority (EDSA).

The EWRC Act sets up a framework for independent technical and economic regulation of the utilities. Moreover, there are several regulations such as licensing rules and terms and conditions, tariff methodology and performance standard regulations that have also become legal instruments that describe the mechanisms for licensing, tariff setting and utility performance monitoring. The Ministry of Energy provides policy oversight of the sector in collaboration with a multitude of other ministries, departments and agencies. Their roles and responsibilities are elaborated in Appendix A.

Despite the implementation of these critical reforms between 2011 and 2015 to improve efficiency and introduce private sector participation along the value chain, the sector remains extremely constrained. According to the World Bank (WB) Enterprise Survey (2017), on average, over 75% of firms indicated that they had experienced an electrical outage. Further, surveyed firms reported that outages lasted for more than 10 hours a day on average and losses incurred were as high as 16% of annual sales.

The energy sector’s distressed financial position is having deep implications for the entire economy. Historically, electricity tariffs have not been cost reflective and the situation remains the same today. As a result, significant subsides are directly provided to the electricity sector by the Ministry of Finance. Subsidies to the energy sector increased from approximately $1.7 million in 2016 to over $14 million in 2020, a more than 700% rise over 4 years based on data provided by the Ministry of Finance with EDSA receiving the highest share. Commercial and technical losses on the system are upwards of 40%. The annual losses of the sector account for about 1% of the GDP (Sierra Leone’ Constraints Analysis 2021, MCC).

Generation Current, installed capacity in the country is 270.5 MW of which 158 MW is provided by Independent Power Producers (IPPs). Of the total capacity, only 116 MW is available and cannot meet the estimated total demand of 435 MW (Electricity National Investment Plan Demand Estimates) for households, manufacturing firms and agrocenters. Poor planning, low investments, coupled with poor maintenance regimes and unavailability of spares for existing thermal plants are some of the key drivers for low availability of Government owned generation plants. On the side of the private sector, a financially unviable electricity distributor, weak implementation of the IPP framework and the poor and limited state of the transmission and distribution network are the main barriers to investment.

Growth in power demand is currently met by an expensive offshore Heavy-Fuel Oil (HFO) power-ship. Power demand is growing fast but current actual demand is less than 100 kWh per capita. Low demand per capita demonstrates the potential for substantial growth which will be met by the improvements of the transmission and distribution network to distribute power to more load centers, more reliably. The end-user tariff rate as mentioned earlier, though not cost-reflective is one of the highest in Sub-Saharan Africa (SSA) which constraints consumption among poor and vulnerable households. The high tariff is driven by the over reliance on expensive thermal generation as well as high transmission and distribution losses. However, the country is estimated to have abundant renewable energy resources especially hydro and solar potentials that could further diversify the energy mix and provide long-term and low-cost power. In addition to the low-cost power generation need, there is also strong demand for on- grid firm power that guarantees year-round power generation and offers the potential to meet peaking demand.

Transmission The Sierra Leone Investment Plan, 2016 prepared by National Rural Electric Cooperative Association (NRECA) identified the completion of the national transmission backbone as a priority of the Energy sector. Completing the national transmission backbone was also a key assumption of the Integrated Resource Plan (IRP) developed by the MCC funded Threshold Program (THP) to establish the least cost generation pathway.

Currently the only high voltage (HV) 161 kV transmission line is 205 km long and supplies power to Freetown from the Bumbuna 1 hydroelectric power station, which is being rehabilitated, and transports about 70 MW at optimal capacity. However, at loads exceeding 40 MW, its stability significantly deteriorates, limiting its actual evacuation capacity to just 57%. It is prone to trips and shutdowns.

Independent of the main 161 kV line is the Cote d’Ivoire-Liberia-Sierra Leone-Guinea (CLSG) line that is expected to be fully operationalized in 2022. The CLSG Interconnector project involves the construction of a 1,350 km transmission line allowing power exports from Côte d’Ivoire to Liberia, Sierra Leone, and Guinea. The interconnector aims to provide these countries with an increased supply of electricity to meet growing demand and to create incentive for hydropower potential, such as in Sierra Leone and Guinea, to be realised.

According to the load forecast in the MCC funded IRP, power demand in the coming years is expected to grow at an annual rate of 7.2% and increase from its current level of about 696 GWh to 2,800 GWh in 2040. Also, household per capita power demand is expected to grow from 94 kWh to 392 kWh per capita during the same period. The IRP further estimated a peak demand of approximately 1,062 MW in 2040 from its current level of 170 MW. However, despite this high growth in expected demand, this potential may remain unrealized without a functional and stable national transmission grid.

Distribution Currently, the electricity access rate in Sierra Leone is estimated to be around 23%, one of the lowest in Sub-Saharan Africa as well as among its per capita income peers around the globe. Moreover, the absolute number of people without any form of grid and off-grid electricity as the population grows, has outpaced the number of connections. Connection rates between urban and rural areas is disproportionate with rural access at 4%, compared to about 48% in urban areas.

Rural households typically rely on batteries as well as solar panels for lighting and other needs. A small but rapidly growing number of solar mini-grid installations is emerging throughout Sierra Leone’s countryside, offering an increasingly viable alternative to traditional grid access or diesel-powered generation. Households, regardless of access, rely on firewood and charcoal for cooking, with implications not only for indoor air quality but also the sustainable management of renewable resources. Even in instances in urban areas where there is grid coverage, households and firms face inadequate supply reliability and brownouts are prevalent because of an overloaded and outstretched network.

Increasing access to a reliable and affordable power supply requires investments to strengthen, upgrade and expand the medium voltage and low voltage distribution network for the main load centers around the country as well as improvements in the institutional arrangements to deliver the power.

Additional details on the power sector are included in Appendices B to D.

OBJECTIVES

The overarching objective of this study is to conduct feasibility assessments that will inform MCC and the GoSL’s selection of investments under the Compact program to support the Sierra Leone power sector. MCC requires sufficient analysis and associated outputs in order to select and conduct an economic analysis of projects for inclusion in the Compact, by 31 March 2023. This is when MCC will draft its Investment Memo for the Compact.

SCOPE OF WORK

The scope of work comprises two parts:

1. Base Study (Part 1): Conduct feasibility analyses plus supporting analyses of proposed projects by MCC/SLCDU in the generation, transmission and distribution rehabilitation and expansion activities that will be considered for possible investment by MCC. This part covers:

a) Rehabilitation and Expansion of the National Transmission Network.

b) Rehabilitation and Upgrade of the Goma Hydroelectric Plant.

c) Rehabilitation, Expansion of Distribution Network, and provision of access to selected locations.

d) Construction of National Transmission and Distribution Dispatch Centers.

2. Optional Assessments (Part 2): Activities that MCC and SLCDU may opt to also conduct:

a) Upgrade of the Bumbuna I Hydroelectric plant.

b) Potential for grid connected solar plants and/or storage capacity.

c) Technical potential for additional hydro power development in Sierra Leone (to support planning for the future).

d) Power supply requirements for selected agribusiness opportunities (subject to the conclusions of another study MCC is conducting).

The Contractor is required to price the Base Study and each option separately.

The feasibility analysis will include technical assessments (requirements, costing, optimization to maximize benefits),as well as:

Environmental and social analyses, including a Resettlement Policy Framework.

Gender and Social inclusion assessments.

Trafficking in persons (TIP) assessment.

Climate change assessments.

Economic and financial analysis.

Monitoring and Evaluation: suggested indicators, baselines, and annual targets for the Compact program.

Over the course of the assignment, the Contractor shall be mindful that, to be selected for inclusion in the Compact program, activities must be consistent with MCC’s investment objectives:

Economic Rate of Return of at least 10% for each discrete project (as determined by the MCC economist based on outputs of this assignment).

Clear program logic, showing a clear link to the constraints identified in the constraints analysis and demonstrating how program activities will lead to a measurable and verifiable impact on specific beneficiaries and performance of the utilities.

Can be completed within 5 years.

Pro-poor, socially inclusive and with MCC Gender Policy and Gender Integration Guidelines integrated into design.

Attract capital from private sector/other donors and implement new financing structures and innovative delivery models.

Can be maintained post-Compact (operationally, financially, institutionally) and are therefore sustainable.

Adhere to the MCC Environmental Guidelines (2010), including the Performance Standards on Environmental and Social Sustainability of the International Finance Corporation (IFC).

Address climate change adaptation and mitigation opportunities in adherence with MCC’s Climate Strategy.

Scalable, preferably, given that compacts have a fixed budget in U.S. dollars over a fiveyear period.

It should be noted that, in parallel with this assignment, complementary assignments by other contractors will be carried out, e.g. to assess willingness-to-pay, private sector participation options for EDSA, and opportunities to support the food value chain in Sierra Leone. Given the potential for overlapping analysis, the Consultant is expected to collaborate as needed with other MCC consultants supporting Compact development to ensure the timely sharing of key data and assumptions. This is elaborated further in Section C.4 through a series of coordination workshops aimed at promoting discussions among the various Consultants.

TASKS TO BE PERFORMED

The projects and areas for evaluation are described in the subsections below.

Section C.4.A describes the required types of analyses. The Contractor is expected to tailor the analyses to the needs of each specific project. The areas of study, detailed in section C.4.A, are as follows:

Engineering and Implementation assessments for infrastructure.

Environmental and Social impact assessments.

Resettlement Policy Framework (RPF).

Trafficking in Persons (TIP) Risk assessment.

Social and gender inclusion assessment.

Climate Change Mitigation, Transition And Resiliency Assessment.

Economic and financial assessments and monitoring and evaluation.

Given the various projects under consideration, detailed tasks will be developed based on the following approach:

1. Preliminary assessment of each project: As an intermediate step, Contractor will perform a preliminary assessment for MCC/SLCDU to confirm the requirements for completing the feasibility assessments.

2. Pre-feasibility assessment.

3. Feasibility assessment.

For purpose of clarity, description of the content of the deliverables is provided in each subsection of C.4.B to F.

Deliverable milestones are specified in Section F.3.

The proposed projects covered by this assignment are as follows:

Base Period

1. Rehabilitation and Expansion of National Transmission Network (C.4.B):

· Southern Transmission Corridor and sub-transmission.

· Northern Corridor sub-transmission.

· Upgrade of the 161 kV Freetown Bumbuna line.

2. Generation of low cost and low carbon electricity (C.4.C):

· Rehabilitation and upgrade of the Goma Hydroelectric Plant.

3. Increased access to affordable and reliable electricity (C.4.D):

· Rehabilitation and Upgrade of distribution network in Sierra Leone.

· Expansion of the Distribution Network to Unserved Areas in Sierra Leone.

· Access and Last Mile Connection to Poor Households.

4. National Transmission and Distribution Dispatch Center along with telecommunication infrastructure (C.4.E).

Optional Assessments

1. Upgrade of Bumbuna I Hydroelectric Plant (C.4.C.2).

2. Grid connected Solar/Storage Potential Assessment (C.4.C.4).

3. Hydro Potential Assessment (C.4.C.6).

4. Power supply requirements for selected agribusiness opportunities (C.4.F).

The Contractor may not proceed with Optional Tasks without the written approval of the COR/PM.

REQUIRED ANALYSES

Engineering and Implementation assessments for INFRASTRUCTURE This section gives an overview of the analyses required for the assessments of transmission, distribution, and generation.

For each project, the consultant shall prepare preliminary engineering assessments at a level suitable to analyze trade-offs and risks, costs and benefits for the purposes of making investment decisions and assessing capabilities of implementing partners and successor entities responsible for operating and managing delivered assets. These assessments include all appropriate simulations, field investigations, and calculations required to size and site proposed infrastructure and are in addition to specific tasks that are highlighted in the sections that follow describing project context and components.

The consultant shall prepare and submit the following for all infrastructure under consideration.

1. Maps, site plans, schematics and profiles for linear infrastructure (such as transmission lines) at a scale suitable to orient the project to the geography, relevant constraints and adjacent settlements. This includes the development and use of geo-referenced, GIS data in order to document and evaluate information. The consultant should reference the Geographic Data File Requirements and Sensitive Geospatial Data Administration sections in Appendix F for specific information on the collection, use, management, sharing and handover of geo-referenced data in addition to sensitive data requirements.

2. Works packaging and implementation strategy, including recommendations for the procurement and market sounding approach (identification of appropriate MCC standard bidding documents, which are based on forms of contract from the International Federation of Consulting Engineers, FIDIC).

3. A detailed project execution schedule indicating the anticipated progress of works and expenditures, taking into account seasonal climate conditions and other anticipated challenges, including any dependencies on non-Compact projects that are planned or in progress, and identifying the critical path for completion/handover within the Compact’s 5-yr period. The proposed implementation schedule should explicitly take into account time required for:

· Any technical study or additional investigation needed.

· The development of tender documents for construction.

· The preparation and implementation of Resettlement Action Plans (RAPs).

· Environmental and construction/work/labor permits (according to MCC’s guidelines and Sierra Leone regulations).

· Testing, commissioning and handover.

· The appropriate defects liability period (DLP) (Works handover must be completed prior to the Compact end date, while DLPs may extend beyond).

· Float for possible delays.

4. Sustainability strategy/requirements, including asset ownership and operational and maintenance requirements.

5. Geotechnical Assessment of the nature and sequence of the subsurface strata and the physical properties of the soils and rock underlying the site, in order to assess preliminary cut and fill volumes; identify potential risk areas (i.e., landslide, liquefaction potential, etc. Before outlining the details of the geotechnical investigation, the Contractor shall collect existing topo maps, light detection and ranging (LIDAR), aerial survey; soil conditions from geological and geotechnical maps and reports; historical hazard occurrences in the region. For Transmission lines/linear infrastructure, information should be collected on the probable soil conditions by analysis of geological and geotechnical reports, maps, aerial and satellite photographs, and reviewed by an experienced geotechnical engineer who will identify any potential risk (landslide, flood zones, erosion, rock falls, etc.) that could affect the safety and the longevity of the project. For each risk listed, an investigation program to mitigate those risks, or an alternative scenario, will be proposed.

6. Cost estimates with detailed assumptions. The estimates shall include the following:

· Equipment and all costs for construction contract estimates.

· Administrative and project management costs.

· Resettlement and environmental/social mitigation costs.

· Clear assumptions for inflation and commodity prices (reflecting projected risk).

· The level of confidence and recommended budget contingency.

· Projected allocation of costs over compact implementation period (by year), assuming a 12month period before compact entry into force (when detailed designs can be completed), plus the Compact period of 5 years (6 years in total).

7. Risk assessment that covers schedule, cost, quality, and other risks and recommends mitigation measures. Any dependencies on other GoSL or donor-funded projects should be highlighted.

Details of tasks/deliverables required for each project is stated in the relevant subsection.

Environmental and social impact assessments This section gives an overview of the analyses required for all projects. As an integral part of the present Scope of Work, preliminary Environmental and Social Impact Assessments (ESIAs) are required as appropriate for all proposed MCC investment. The scope of those assessments will be commensurate to the expected associated environmental and social issues associated with proposed investments. The scope of work described below must be completed for all proposed compact projects, though some modification may be necessary to account for differences in scope and impact.

Preliminary Environmental and Social Impact Assessments (ESIAs) must be undertaken in compliance with national legal and regulatory requirements, and relevant international conventions related to environmental and social matters to which Sierra Leone is signatory. The environmental and social assessment process shall also be conducted in accordance with the MCC Environmental Guidelines (HTTPS://WWW.MCC.GOV/RESOURCES/DOC/ENVIRONMENTAL-GUIDELINES), including the International Finance Corporation (IFC) Performance Standards on Environmental and Social Sustainability (https://www.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/Sustainability-At-IFC/Policies-Standards/Performance-Standards).

The Contractor shall complete all screening and scoping activities necessary to compile Preliminary Environmental and Social Impact Assessments (Preliminary ESIA) to be integrated in the Detailed Feasibility Study for each proposed project.

One objective of this task is to inform the selection process to identify Compact projects, to provide MCC with the information necessary to determine potential fatal flaws, and to provide estimates of the costs associated with development of Environmental and Social Impact Assessments (ESIA), necessary Environmental and Social Management Plan (ESMP), implementation of the Resettlement Action Plan (RAP), including compensation payment, and implementation of mitigation measures (as best as possible based on available information). Key critical environmental and social aspects associated with each investment projects should be highlighted to allow MCC to compare proposed projects and associated components and alternatives, as well as to determine optimal and sustainable investment opportunities. At project level, a multi-criteria alternatives analysis should be conducted for line-route selection and siting of infrastructure to avoid and reduce some of the environmental and social impacts during project design.

The Preliminary ESIA shall include:

1. Regulatory and Institutional Framework Review:

a. An overview of relevant policy, legal and institutional frameworks will be provided to the Contractor. The Contractor will rely on the information related to the environmental and social assessment process and will supplement this information, as necessary, to compile a regulatory and institutional framework review suitable for inclusion in the Preliminary ESIA.

An update of this framework will be particularly important as the Ministry of Environment has recently passed new Acts and Bills which may be relevant for the proposed investments projects planning and implementation.

b. The environmental assessment process shall be conducted in accordance with the MCC Environmental Guidelines, including the International Finance Corporation (IFC) Performance Standards on Environmental and Social Sustainability, as well as all applicable local and national policies and regulations, and relevant international environmental and social agreements to which Sierra Leone is a party.

c. The ESIA shall take into account key requirements of relevant national and international legislations and mainstreaming plans on gender equality and inclusion, including National Action Plan (2019-2023).

d. The regulatory review shall also include a gap assessment comparing local and national regulations with the IFC Performance Standards.

2. Initial Stakeholder Engagement and Consultation:

SLCDU will secure a separate local consultant for the purposes of stakeholder engagement on MCC Compact development. Close collaboration between the Consultant’s stakeholder engagement team, local consultant and SLCDU will be important to ensure that the communication of technical, environmental and social information is timely and appropriate and that the input from relevant stakeholders, specifically at the local and communities level, is fully understood and considered in the identification of the investment projects and in Compact planning.

The Contractor shall ensure that stakeholder engagement for the feasibility study is prepared in consultation and in coordination with SLCDU.

a. Conduct initial social and gender inclusive stakeholder identification and stakeholder mapping for all categories of stakeholders affected by or with influence over the project, including vulnerable groups and indigenous people, as applicable, following the SLCDU Stakeholder Engagement Framework which will be provided at the time of contract award.

b. Establish and implement a gender and social inclusive stakeholder engagement and consultation plan, which notably includes a grievance mechanism, for the feasibility phase in alignment with the MCC Guidelines for Public Consultations and Stakeholder Engagement, the SLCDU Stakeholder Engagement Framework and its existing relationships with civil society organizations.

c. Feasibility phase consultation and engagement shall:

· Provide stakeholders with preliminary information regarding the proposed projects, project assessment processes (feasibility, ESIA, RAP, etc.) and associated focussed studies, including gender and social inclusion, Trafficking in Persons (TIP) and Climate Change Mitigation, Transition and Resilience.

· Solicit and receive stakeholder input on the proposed project and assessment processes.

· Solicit and receive stakeholder input on gender aspects, including safety and security, Gender Based Violence (GBV) related risks such as sexual harassment, gender equality in employment and community, gender inclusion in the development decision-making process.

· Facilitate and supplement work performed by MCC’s due diligence consultants and finalize a participatory project selection process (The methodology could be used to select the preferable option, based on an analytical approach that incorporates comparative criteria grouped into three main groups (technical, environmental and social). It includes the identification of selection criteria, the weighting of these criteria, followed by the comparison of the various line route variants on the basis of this criteria). The identification and the weighting of the selection criteria should be established using a participative approach involving the participation of a working group to be identified together with MCC and SLCDU. The stakeholder engagement activities to be conducted will also contribute to the identification of main issues, concerns, fatal flaws and expectations associated with the proposed projects and the receiving environment to guide the identification and selection optimal projects and associated alternatives.

· Disclose, as appropriate and necessary under Sierra Leone law and MCC Environmental Guidelines, the Feasibility Study, Preliminary ESIA and RPF.

e. All stakeholder engagement and consultations shall avoid raising expectations that the proposed projects have been approved, and shall instead highlight the preliminary nature of screening and scoping activities as a prerequisite for further evaluation of project suitability.

f. Formal questions, views and concerns expressed by stakeholders shall be collected and documented and should be included in the environmental and social studies and results.

g. Consultation and engagement shall be conducted in a manner and language acceptable to each respective stakeholder group and the length of the consultations might differ among stakeholders groups to guarantee that each different groups fully comprehend the proposed projects.

h. Consultations on gender aspects in relation to any sensitive issues such as sexual harassment shall be kept confidential. Consultations with women shall be undertaken in a focus group format to ensure targeted approach on gender related issues.

3. Preliminary Baseline Data:

a. Gather existing sex-disaggregated baseline data and/or conduct field reconnaissance and initial baseline data collection to support the projects selection process and provide preliminary characterization of the receiving environment to facilitate the preliminary impacts assessment. Determine any potential fatal flaws for proposed investments and their associated alternatives. Describe relevant physical, biological, and socio-cultural/economic conditions, including any changes anticipated before the project commences. Key issues to be addressed by the preliminary ESIA include all 8 elements of the IFC Performance Standards with particular attention on:

· Identification of modified, natural and critical or sensitive habitats within the Project area of influence; and description of general terrestrial and aquatic ecology including any possible protected, endangered, threatened or endemic species/habitats, and identification or areas of importance for biodiversity.

· Land use classifications within the area of influence (urban, human settlement, agriculture, pastoral, forest, etc.), including any formally designated land use or protection categories; land use rights for both men and women, status of the land (public or private domain of the state); land conflict information (if any) and what are the mechanisms in place to address these conflicts.

· Land use planning, including land use plans from cities and municipalities, current and proposed development activities within the project area that may affect or be affected by the project, existing and proposed infrastructures (i.e. access roads and substations).

· Existing climate impacts, modeled climate change projections and climate change issues that would affect project design or planning. MCC will make available its initial power sector climate vulnerability assessment, relevant GIS data layers and access to an existing ArcGIS online platform built for compact due diligence available to the Consultant.

· Climate resilience in terms of capacities of local community in tackling climate changes impacts, including proposed climate change adaptation measures for women and vulnerable groups as they are further exposed to climate change impacts.

· Collection of preliminary sex-disaggregated demographic and socio-economic information for potentially affected female/male headed households/communities, including estimates of population (gender disaggregated), ethnicity/culture, language, economic activity, household marital profile and other relevant data.

· Geo-referenced location, estimated number and general characteristics of physically and economically Project Affected Persons (PAPs) such as average household size, estimated income source, occupation, gender, and local ethnicity profiles, vulnerable groups among other relevant and available baseline data.

· Areas used by affected individuals, households, and communities for livelihood, to identify and assess potential resettlement and livelihood related impacts and risks.

· Description of site-specific land use, land ownership and type of ownership (customary rights), responsible institutions, customs or practices and identification of any land related conflicts.

· Labor and working conditions (including human trafficking, forced labor, child labor, freedom of association).

· Identification of indigenous peoples and ethnic groups within the project area, including population estimates, summaries of governance institutions or practices, description of formal or traditional territorial rights, land use, and economic activities.

· Gender relations and identifying existing trends in relation to issues surrounding women such as GBV, safety and security, equal access to health and other welfare facilities.

· Preliminary risks of negative impacts associated with pollution at proposed project sites (whether new project sites, or rehabilitation of existing sites), including long-term management of wastes/pollution associated with proposed activities.

· Characterization of existing portrait of the local power generation (eg. Thermal plant, commercial and residential private generators), local users and uses, including information on informal connections.

· Location and description of known cultural resources (archaeological, historic or other) within or close to transmission line routes and other proposed activities.

· Identification of geo-physical risk areas associated with floods, seismic instability, erosion, soil stability, etc.

· Preliminary identification of ecosystem processes or services which could be affected, including provisioning, regulating, cultural or supporting services.

· Identification of any potential fatal flaws associated with suggested projects and associated alternatives.

b. Transmission and distribution lines: General baseline data will be needed for each proposed line route for the purpose of the route selection process and alternatives analysis; additional details may then be gathered for the selected route(s), as necessary.

c. Hydropower projects: General baseline information should be gathered at a watershed level and more detailed information should be provided inside the sub-watershed where the hydropower project is located. Additionally, to the information described above, a land-use change analysis will be required for the surface area located inside the investigated sub-watersheds as sedimentation linked with deforestation and land-use change is a significant problem for hydropower plants in Sierra Leone. The Contractor should work with available historical satellite imageries and more recent ones to identify changes in land-use overtime and describe associated tendencies. Undertake baseline characterization of river flows (monthly and annual), sediments loads and sedimentation process based on the results of activities planned in section C.4.C.3.