J.1.23 Empower Nigeria IEE Draft.pdf

ECD tracking #

IEE Template Version 4.4 (1.24)

INITIAL ENVIRONMENTAL EXAMINATION (IEE)

Overview: This is the Initial Environmental Examination for a new activity, Empower Nigeria.

ORGANIZATIONAL DATA

Activity Name: Empower Nigeria

Geographic Location(s): Nigeria

Funding Operating Unit(s): Power Africa

Other Involved Operating Unit(s): Nigeria Mission

Funding Account(s):

Life of Project Funding (ceiling):

Activity Start/End Date If Amended, New End Date:

Solicitation/Contract/Award Number(s) :

Mechanism Type: Contract

Implementing Partner(s):

DOCUMENT TRACKING

Bureau Tracking ID:

If an Amendment, Tracking ID of Preceding Compliance Document(s):

None

Other Related Compliance Documents: None

Document Expiration Date:

Sector Type(s): Energy

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Environmental Determination(s): Categorical Exclusion Negative Determination Negative Determination w/ Conditions

Additional Analyses or Reporting Required: Environmental Mitigation & Monitoring Plan / Report (EMMP/R)

Activity will involve construction, as defined by ADS 201 and 303:

Yes

Potential Impact to Threatened or Endangered Species or Critical Habitat per 216.5:

Select from dropdown

Applicability of Safeguards for Activities Supporting Parks and Protected Areas:

No, this activitiy will not involve protected areas

Climate Risks Identified (#) in Annex 1:

Climate Risks Addressed (#) in Annex 1:

Low:Select Moderate:Select High:Select Low:Select Moderate:Select High:Select https://www.usaid.gov/about-us/agency-policy/series-200/references-chapter/201maw https://www.usaid.gov/about-us/agency-policy/series-200/references-chapter/201maw https://www.usaid.gov/about-us/agency-policy/series-300/references-chapter/303maw https://www.usaid.gov/environmental-procedures/environmental-compliance-esdm-program-cycle/safeguards-for-activities-supporting-parks-and-protected-areas

IEE Template Version 4.4 (1.24)

PURPOSE OF THIS DOCUMENT

In accordance with Title 22, Code of Federal Regulations, Part 216 (22 CFR 216), this document provides review of reasonably foreseeable effects of a proposed action on the environment. Its function is to document the factual basis as to whether an Environmental Assessment will be required. This document sets out conditions necessary to eliminate or mitigate significant adverse impacts. As needed, this document will be amended to provide further analysis when new activities are added or additional information is available that warrants further review.

This document also captures (in Annex 1) the results of the Climate Risk Management process, in accordance with USAID policy (ADS 201mal).

APPROVAL OF [ACTIVITY NAME] IEE

Approval:

Mission Director or Bureau/Independent Office Equivalent Date

Clearance:

Samson Masebinu, Project Design Team Lead Date

Nivann Govindasamy, Mission Environmental Officer Date

Regional Environmental Advisor [as appropriate] Date

Concurrence:

Brian Hirsch, Africa Bureau Environmental Officer Date

Other Clearance/ Concurrence:

[add as required by OU or Mission Order] Date

Distribution: Award File; Environmental Compliance Database https://www.usaid.gov/our_work/environment/compliance/22cfr216 https://www.usaid.gov/ads/policy/200/201mal

IEE Template Version 4.4 (1.24)

1. ACTIVITY DESCRIPTION

The Empower Nigeria program interventions will be delivered through targeted advisory services, technical assistance, capacity strengthening, catalytic grants, pilot activities, and investment mobilization to a range of institutions participating in the NESI and in the off-grid sector. These institutions include government ministries, generation, transmission and distribution companies, regulators, private sector stakeholders, trade groups and associations, investors, multilateral organizations and their initiatives, academic institutions and/or civil society organizations among others.

Illustrative interventions identified in the Empower Nigeria Statement of Work have been grouped into Intervention Categories. Table 1 maps each of the illustrative interventions to one of the six Intervention Categories listed below:.

Intervention Category A: Training- excluding hands-on Intervention Category B: Training - including hands-on Intervention Category C: Technical assistance for business processes Intervention Category D: Technical assistance for specific projects Intervention Category E: On-site field support Intervention Category F: Direct support or funding for specific projects Intervention Category G: Document interventions, processes, and impacts

TABLE 1: ILLUSTRATIVE INTERVENTIONS AND INTERVENTION CATEGORIES

Illustrative Interventions Intervention Category

Outcome 1 – Enabling Environment Enhanced for Sector-wide Impact and Improved Investment Opportunities

Intervention 1.1: Support to the Nigeria Electricity Regulatory Commission

Intervention 1.1.1: Provide extensive technical assistance, insight into the industry key metrics and improve NERC’s market direction instructions.

C: Technical assistance for business processes

Intervention 1.2: Support to relevant government institutions to strengthening governance and advance strategic policy initiatives

Intervention 1.2.1: Provide support to the Ministry of Power to advance strategic policy initiatives.

C: Technical assistance for business processes

Intervention 1.2.2: Assess other government agencies, institutions, and ministries to identify policy, and other enabling environment gaps, opportunities, programs, activities and structure Empower Nigeria program support with high sector impact both in the short and long term.

C: Technical assistance for business processes

Intervention 1.2.3: Identify the NESI’s enabling environment bottlenecks that are cross-cutting and provide the necessary assistance to resolve them.

C: Technical assistance for business processes

Intervention 1.3: Support the implementation of the Electricity Act 2023 or other modifications of the Act

Intervention 1.3.1: Support a coordinated resource pool/central advisory facility across stakeholders for State governments that intend operationalizing this Act in their state.

C: Technical assistance for business processes

Intervention 1.3.2: Provide technical assistance and transaction advisory services as appropriate to enable the State Government, with high readiness level, to implement the Act with a positive impact on NESI.

C: Technical assistance for business processes

Intervention 1.4: Promote Gender equity and other marginalized communities in the NESI

Intervention 1.4.1: Identify barriers, and opportunities for inclusive programming and implement innovative solutions to advance gender equity and the inclusion of other marginalized communities in the NESI.

C: Technical assistance for business processes

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Illustrative Interventions Intervention Category

Intervention 1.4.2: Engage and seek the participation of groups and communities currently underserved by the sector, and under-represented in the sector’s leadership and workforce to increase diversity, equity, inclusivity and innovation in the planning, development and management of the power sector in Nigeria.

C: Technical assistance for business processes

Outcome 2 – Power Supply System is Expanded with Increased Operational Capacity, Reliability and System-wide Integration

Intervention 2.1: Improve installed generation plants availability, reliability and operational capacity

Intervention 2.1.1: Provide technical assistance and advisory services to identify supply bottlenecks (in terms of quantity, quality, and availability) that impair the majority of generation facilities from delivering reliable electricity supply to the grid.

C: Technical assistance for business processes

Intervention 2.1.2: Provide technical assistance and advisory services to support activities geared towards removing supply bottlenecks (in terms of quantity, quality, and availability) that impair the majority of generation facilities from delivering reliable electricity supply to the grid.

D: Technical assistance for specific projects

Intervention 2.2: Improve transmission infrastructure availability, reliability and operational capacity

Intervention 2.2.1: Identify ongoing initiatives by the Transmission Company of Nigeria (TCN) and other stakeholders to improve the operational efficiency of the electricity transmission system, and determine USAID/Power Africa support strategy, entry point and interventions with sector wide impact.

C: Technical assistance for business processes

Intervention 2.2.2: Support TCN to increase the technical operational capacity of the existing infrastructure to evacuate more power, reduce technical losses, accept grid-based renewable energy while still operating within acceptable ranges of the approved grid code.

D: Technical assistance for specific projects

Intervention 2.2.3: Assess TCN’s internal operating processes and procedures, conduct a benchmarking assessment, and assist TCN to implement more efficient standard operating procedures.

C: Technical assistance for business processes

Intervention 2.3: Support new and existing power supply transactions to advance Nigeria Energy Transition

Intervention 2.3.1: Build upon the Power Africa’s pipeline of clean energy generation and transmission transactions including, but not limited to those currently supported by Power Africa’s Nigeria Power Sector Program and aligned with the Nigerian Energy Transition Plan or similar national clean energy goals/programs.

D: Technical assistance for specific projects

Intervention 2.3.2: Identify and support initiatives for new clean on-grid and embedded generation projects that create opportunities for public and/or private sector investment in such projects.

D: Technical assistance for specific projects

Intervention 2.3.3: Enhance the investment appetite of the private sector, improve project attractiveness to investors and stakeholders and provide support in sourcing for both public and/or private capital whilst catalyzing already earmarked funds from other agencies to advance transactions.

D: Technical assistance for specific projects

Intervention 2.4: Capacity building to enhance planning, management and operations of the power supply systems

Intervention 2.4.1: Build the capacity of stakeholders to enhance planning, management and operations of both existing and new power supply systems within NESI.

A: Training - except hands-on

Outcome 3 – Offgrid Clean Generation, Connections and Utilization Increased

Intervention 3.1: Increase access to finance resulting in deployment of mini-grids, SHS and productive use equipment (PUE)

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Illustrative Interventions Intervention Category

Intervention 3.1.1: Develop and/or support and implement activities that increase access to both local and international sources of capital for off-grid companies, scale innovative financing structures, act as catalytic and/or first-loss capital, and de-risk investment.

D: Technical assistance for specific projects

Intervention 3.1.2: Support stakeholders to increase access to and availability of different financial instruments to mitigate currency volatility, devaluation risk, and increase the local currency pool of funds.

C: Technical assistance for business processes

Intervention 3.1.3: Provide targeted and fit-for-purpose transaction-related technical assistance and advisory services, for example legal and tax advisory services, environmental and social impact assessments, engineering services, or other types of technical support that unlock new off-grid capacity and/or new offgrid connections.

D: Technical assistance for specific projects

Intervention 3.2: Regulatory and coordination efforts improved to scale the offgrid sector

Intervention 3.2.1: Support the Government of Nigeria and its agencies to overcome regulatory challenges that impede the scaling of the off-grid sector in Nigeria such as implementing customs duties exemptions.

C: Technical assistance for business processes

Intervention 3.2.2: Support the regulatory agencies and work through the donor coordination group to systematically couple on-grid and off-grid expansion initiatives, embedded generation and sub-franchising with proactive interventions to promote productive use.

D: Technical assistance for specific projects

Intervention 3.2.3: Collaborate with other donor organizations, DFIs, and multilateral development banks on the implementation of power sector reform and development programs, particularly the World Bank’s Distributed Access through Renewable Energy Scale-up (DARES) project and potentially other programs by GEAPP, FCDO, EU, GIZ and others.

D: Technical assistance for specific projects

Intervention 3.3: Market intelligence and transaction support enhancing the quality of offgrid transactions

Intervention 3.3.1: Improve upon existing market intelligence tools/platforms or develop them where such products are non-existent and collaborate with relevant stakeholders to assume ownership and the on-going update of such products on delivery.

C: Technical assistance for business processes

Intervention 3.3.2: Conduct assessment of the market to identify critical missing information, bring its innovation in proposing and structuring its activities in developing appropriate information products or interventions for the sector.

C: Technical assistance for business processes

Intervention 3.3.3: Provide transaction-specific market intelligence support in order to help advance a specific transaction or portfolio of transactions.

C: Technical assistance for business processes

Intervention 3.4: Capacity building and innovation in sustaining the offgrid sector

Intervention 3.4.1: Conduct capacity building and innovation development assessment, map out the skill gaps in the sector, innovation opportunities, rank and prioritize interventions to fill the skills and innovation gaps with urgent and broad sector impact, ensuring the inclusion of women and other marginalized groups.

A: Training - except hands-on

Intervention 3.4.2: Develop targeted and appropriate programs for different tiers of off-grid stakeholders that bring efficiency to the sector and enable stakeholders to advance transactions, including for example business management and financial management capacity building for off-grid companies.

D: Technical assistance for specific projects

Intervention 3.4.3: Identify and work with selected organizations and academic institutions to enhance their training and capacity development offerings that increase access to human capacity for the off-grid sector.

A: Training - except hands-on

Outcome 4 – Improved Financial and Operational Performance of Nigerian Distribution Companies

Intervention 4.1a: Improve DISCO business practices to increase cash flows and reduce commercial and collection losses

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Illustrative Interventions Intervention Category

Intervention 4.1a.1: Assess DISCO meter networks and implement activities to reduce metering gaps with the greatest impact on reducing commercial and collection losses.

C: Technical assistance for business processes

Intervention 4.1a.2: Provide requisite support to the enumeration of DISCO customers.

This could include customer data analytics.

C: Technical assistance for business processes

Intervention 4.1a.3: Demonstrate some commercial loss reduction strategies with tangible results leveraging the Grants Under Contract facility.

F: Direct support or funding for specific projects

Intervention 4.1a.4: Undertake energy accounting and revenue protection initiatives. C: Technical assistance for business processes

Intervention 4.1a.5: Institutionalizing the ongoing implementation of these loss reduction strategies in the PA Partnership DISCOs beyond the life of the Empower Nigeria program.

C: Technical assistance for business processes

Intervention 4.1b: Provide technical services and other high impact solutions for DISCOs to reduce technical losses

Intervention 4.1b.1: Audit to establish technical loss levels, causes of the losses, and implement interventions required to remediate them.

E: On-site field support

Intervention 4.1b.2: Demonstrate some technical loss reduction strategies with tangible results leveraging the Grants Under Contract provision.

F: Direct support or funding for specific projects

Intervention 4.1b.3: Set up or operationalize DISCO operation and asset maintenance management plan.

C: Technical assistance for business processes

Intervention 4.1b.4: Institutionalizing the ongoing implementation of these loss reduction strategies in the PA Partnership DISCOs beyond the life of the Empower Nigeria program.

C: Technical assistance for business processes

Intervention 4.2: Support financial management and development of investible corporate structures in the distribution sub-sector

Intervention 4.2.1: Support the assessment of project investment pipeline, where available, or provide technical assistance in developing such.

C: Technical assistance for business processes

Intervention 4.2.2: Provide targeted due diligence, technical assistance, and transaction advisory services that enables the PA Partnership DISCOs to access financing and other types of investments into its operations.

D: Technical assistance for specific projects

Intervention 4.2.3: Develop a framework/methodology for establishing cost of service and regulated asset base towards improving the DISCO’s tariff case making to the regulator.

C: Technical assistance for business processes

Intervention 4.2.4: Document all interventions, processes and impacts. G: Document interventions, processes and impacts

Intervention 4.2.5: Leverage US Government, Donors, Local and International Finance institutions, Government and/or the Power Africa’s partnership network to invest in effective interventions to achieve similar outcomes with non-partner DISCOs and other stakeholders.

D: Technical assistance for specific projects

Intervention 4.3: Modernization and improvement of DISCOs business operations

Intervention 4.3.1: Establish a baseline as-is assessment, and support the DISCOs’ business process re-engineering with targeted interventions.

C: Technical assistance for business processes

Intervention 4.3.2: Support DISCOs in the identification of supply areas suitable for Distributed Renewable Energy (DRE) technologies and other franchise models, the needed infrastructure upgrades, loss management interventions, revenue allocation and the potential impacts to both the DISCOs and customers within the supply area.

D: Technical assistance for specific projects

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Illustrative Interventions Intervention Category

Intervention 4.3.3: Support the implementation of strategies that enhance operational/business process efficiency that affect service reliability metrics such SAIFI and SAIDI and/or customer satisfaction.

C: Technical assistance for business processes

Intervention 4.3.4: Leverage technological tools/software to improve upon decision making, planning, monitoring of its performance (business, financial and technical), and adherence to regulatory requirements.

C: Technical assistance for business processes

Intervention 4.3.5: Support the implementation of the World Bank funded Nigeria Distribution Sector Recovery Program (DISREP) project.

D: Technical assistance for specific projects

Intervention 4.3.6: Document all interventions, processes and impacts. G: Document interventions, processes and impacts

Intervention 4.37: Leverage US Government, Donors, Local and International Finance institutions, Government and/or the Power Africa’s partnership network to invest in effective interventions to achieve similar outcomes with non-partner DISCOs and other stakeholders.

D: Technical assistance for specific projects

Intervention 4.4: Training and capacity development to bring about operational efficiency within DISCOs

Intervention 4.4.1: Assess the workforce development needs, specify and develop appropriate capacity development activities at the program intervention level as needed and secondarily based on demand by the sector or as identified by the contractor.

A: Training - except hands-on

Intervention 4.4.2: Develop knowledge products that would support PA Partnership DISCOs in utility business operations, distribution infrastructure planning, design and sizing, extension, operation and maintenance, project structuring and financing.

A: Training - except hands-on

Intervention 4.4.3: Expand capacity development activities to other DISCOs and sector stakeholders.

A: Training - except hands-on

Intervention 4.4.4: Support a delivery process/platform to share knowledge and knowledge products to all DISCOs.

A: Training - except hands-on

Intervention 4.4.5: Engage with relevant government training institutes, industry approved training organizations and academic institutions to enhance their capacity to increase the capabilities of technicians, graduates and utility staff to respond to the needs of DISCOs for improved service delivery.

A: Training - except hands-on

2. BASELINE ENVIRONMENTAL INFORMATION

2.1. ENVIRONMENTAL BASELINE CONDITIONS

Nigeria is located on the western coast of Africa bordered by Niger in the north, Benin to the west, and Chad and Cameroon to the east. Nigeria has a diverse geography, with climates ranging from arid to humid equatorial. The country has abundant natural resources, notably large deposits of petroleum and natural gas. Nigeria is also Africa’s most populous country, with a 2023 population of 230 million. With a total area of 923,768 km2, it is the most densely populated country in Africa.

In general, the topography of Nigeria consists of plains in the north and south interrupted by plateaus and hills in the center of the country. The major watersheds are the Niger-Benue basin, the Lake Chad basin, and the Gulf of Guinea basin. The Niger River, for which the country is named, and the Benue, its largest tributary, are the principal rivers. The Niger delta is a vast low-lying region through which the waters of the Niger River drain into the Gulf of Guinea. Characteristic landforms in this region include oxbow lakes, river meander belts, and prominent levees. Large freshwater swamps give way to brackish mangrove thickets near the seacoast.

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Nigeria has a tropical climate with variable rainy and dry seasons, depending on location. It is hot and wet most of the year in the southeast but dry in the southwest and farther inland. A savanna climate, with marked wet and dry seasons, prevails in the north and west, while a steppe climate with little precipitation is found in the far north. Temperature and humidity remain relatively constant throughout the year in the south, while the seasons vary considerably in the north. In general, mean maximum temperatures are higher in the north, while mean minimum temperatures are lower.

The main vegetation patterns run in broad east-west belts, parallel to the Equator. Mangrove and freshwater swamps occur along the coast and in the Niger delta. A short way inland, the swamps give way to dense tropical rainforests. Economically valuable, the oil palm grows wild and is usually preserved when forest is cleared for cultivation. In the more densely populated parts of the southeast, the original forest vegetation has been replaced by open palm bush. In the southwest large areas of forest have been replaced by cacao and rubber plantations. Tropical grassland occupies the area north of the forest belt and is studded with baobab, tamarind, and locust bean trees. The savanna becomes more open in the far north and is characterized by scattered stunted trees and short grasses. Semidesert conditions exist in the Lake Chad region, where various species of acacia and the doum species of palm are common. In densely populated areas of the savanna, the vegetation has been removed by continuous cropping, overgrazing, and bush burning. In the far northern areas, the nearly total disappearance of plant life has facilitated a gradual southward advance of the Sahara.

Formerly present wildlife - such as camels, antelopes, hyenas, lions, baboons, giraffes, leopards, golden cats, monkeys, gorillas, and wild pigs - now only exist in protected areas.

Nigeria has sub-Saharan Africa’s largest oil and gas sector, which is the main source of government revenue. Since the 2008-09 financial crisis, Nigeria has seen growth in the agriculture, telecommunications, and services sectors. Despite significant economic growth, 62% of Nigerians live in poverty. Growth is constrained by a lack of reliable power supply, infrastructure, weak legislative and regulatory environment, insecurity, and corruption.

Despite owning large energy reserves and generation capacity, only 60% of the total population has access to electricity. Around 89% of the urban population has access and only 26% of the rural population has access (2021). Nigeria has about 12 GW of installed generation capacity; however, much less is generated and transmitted daily due to limitations in transmission and distribution infrastructure, which is insufficient to meet national demand. Around 78% of the total capacity comes from fossil fuel generators and the remaining capacity comes from hydroelectric plants.

2.2. ENVIRONMENTAL AND SOCIAL LEGISLATIVE AND REGULATORY FRAMEWORK

The Constitution of the Federal Republic of Nigeria recognizes the importance of improving and protecting the environment. Section 20 makes it an objective to improve and protect air, land, water, forest, and wildlife. Section 12 establishes that international treaties (including environmental treaties) ratified by the National Assembly should be implemented as law. Sections 33 and 34 guarantee fundamental human rights to life and human dignity and to a healthy and safe environment.

The National Environmental Standards And Regulations Enforcement Agency (NESREA) has the responsibility for environmental protection, conservation of biodiversity, and the sustainable development of natural resources in Nigeria.

http://www.nesrea.gov.ng/our-functions/

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The National Environmental (Energy Sector) Regulations (No. 63 of 2014), 2014, prevent and minimize pollution and strengthen energy efficiency in the energy sector, promote sustainable economic development in the country, improve the use of indigenous energy resources, reduce emissions of greenhouse gasses (GHGs), encourage investment in renewable and ecologically sustainable energy, and address environmental degradation. These Regulations concern power generation, transmission, and distribution from nuclear and renewable sources and fossil fuels.

Other pertinent environmental regulations include:

● National Environmental (Wetlands, River Banks and Lake Shores) Regulations, 2009. S.I. No. 26.

● National Environmental (Watershed, Mountainous, Hilly and Catchments Areas) Regulations, 2009. S.I. No. 27.

● National Environmental (Permitting and Licensing System) Regulations, 2009. S.I. No. 29.

● Cross River State Forestry Commission Law (No. 3 of 2010).

● National Environmental (Desertification Control and Drought Mitigation) Regulations, 2010. S.I.

No. 13.

● National Environmental (Construction Sector) Regulations, 2010. S.I. No. 19.

● National Environmental (Soil Erosion and Flood Control) Regulations, 2011. S.I. No. 12.

● National Environmental (Surface and Groundwater Quality Control) Regulations, 2011. S.I. No.

22.

● Ekiti State Forestry Law (No.1 of 2016).

● Kaduna State Forestry Law, 2019.

● National Climate Change Policy for Nigeria: 2021-2030, 2020.

● Climate Change Act, 2021.

Nigeria’s Treaties and Conventions Related to Environmental Matters.

● Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) 1974

● Convention concerning the Protection of the World Cultural and Natural Heritage (1975)

● Convention on the Conservation of Migratory Species of Wild Animals (1987)

● Convention on Biological Diversity (Rio Conference) (1992)

● Framework Convention on Climate Change (1992)

● Amendment to the Montreal Protocol on Substances that deplete the Ozone Layer

● Nigeria's First Nationally Determined Contribution to the UN Framework Convention on Climate

Change (2021)

3. DETERMINATION OF CATEGORICAL EXCLUSIONS

A categorical exclusion is recommended for the following activities or interventions (sub-activities) that fall under the classes of actions defined in §216.2(c)(2). No further analysis is required for the activities/interventions identified in the table below.

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TABLE 2: CATEGORICAL EXCLUSIONS

Intervention Category Recommended Determination for Categorical Exclusion

A: Training - except hands-on

● Classroom training

● Meetings, workshops

● Onsite observational training

§216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.)

C: Technical assistance for business processes

● Power supply and demand analyses

● Financial analyses

● Financing strategies

● Market assessments

● Regulatory analysis or support

§216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.)

G: Document interventions, processes, and impacts

§216.2(c)(2)(v) Document and information transfers

4. ENVIRONMENTAL DETERMINATIONS, IMPACTS, AND MITIGATION MEASURES

The following section provides the mandatory analysis of impacts for all activities that are NOT Categorically Excluded per Section 3 of this IEE. Upon approval of this document, the determinations become affirmed, per Agency regulations (22 CFR 216).

4.1. NEGATIVE DETERMINATION

Negative determinations are made when activities or interventions will not have a significant effect on the environment, but for which a Determination of Categorical Exclusion does not apply. In this case, there will be no further action required.

Negative Determinations with Conditions are made when activities or interventions will not have a significant effect on the environment and/or when potential adverse impacts can be avoided or minimized by application of suitable mitigation measures.

Intervention Categories B, D, E, and F have Negative Determinations with Conditions.

The impacts, mitigation, and monitoring measures identified below are provided as a starting point to inform planning. Further review and consideration by the implementing partner will usually be required to properly assess impacts and adjust the measures. Additional guidance is available on the USAID Environmental Procedures Hub, including Sectoral Environmental and Social Best Practices that should be consulted while preparing Environmental Mitigation and Monitoring Plan(s).

https://www.usaid.gov/environmental-procedures https://www.usaid.gov/environmental-procedures https://www.usaid.gov/environmental-procedures https://www.usaid.gov/environmental-procedures/sectoral-environmental-social-best-practices https://www.usaid.gov/environmental-procedures/sectoral-environmental-social-best-practices

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TABLE 3: NEGATIVE DETERMINATIONS WITH CONDITIONS

Intervention Category Potential Impacts ● Mitigation (minimum)

○ Monitoring Measures

B: Training - including hands-on

● Practical hands-on training in an industrial setting or with tools, equipment, or materials

● Equipment installation or maintenance procedures

● Poor training oversight leads to health and safety incidents or adverse environmental impacts

● Improper storage, handling, processing, or final disposal of wastes, waste byproducts, or wastewater generated during training or project activities

● Conduct risk assessments to identify occupational and community health and safety risks and hazards

● Ensure that an appropriate Environmental, Health and Safety plan is in place to minimize incidents and respond accordingly in the event of incidents

● Conduct installation of equipment in accordance with supplier specifications

● Properly manage all waste materials generated during trainings

IP to develop a single Environmental, Health and Safety (EHS) plan for USAID approval to protect from occupational risks and hazards in the training environment and provide restrictive conditions for avoiding environmental, health and safety impacts and incidents. EHS plan must include a monitoring and evaluation form to be completed for each training site.

D: Technical assistance for specific projects

● Technical advisory services

● Transaction advisory services

● Environmental and social impact assessments

● Engineering services

● Project support, whether direct or indirect, generation or transmission, on-grid or off-grid, at utility or distributed scale

● 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 of sensitive habitat, species of conservation concern, agricultural land, or sites of cultural significance

● Involuntary displacement of people, triggering physical resettlement

● Loss of communal land and farmland, triggering economic resettlement

● Landscape intrusion and visual impacts from infrastructure

Implement Screening system identified in Section 4.2.

In addition, EMMPs tiered from the screening should, where applicable:

Regulatory capacity

● Ensure that country regulatory capacity for decision making and environmental compliance activities is not overwhelmed by the number, scale, or complexity of the proposed power projects.

If necessary, support capacity building through programs providing content on good international industry practice.

Procurement

● Include environmental and social compliance requirements in tender documentation, including requirements for undertaking environmental review or the preparation of environmental assessments, as appropriate.

● Ensure that sustainable end-of-life requirements for products and materials are considered in the procurement process to facilitate recycling and material recovery.

Environmental Assessment

● Ensure that feasibility studies consider environmental and social risks, adaptability to climate change, country land codes, and land tenure requirements as part of project site selection

● Ensure that each transaction has or will be subjected to an environmental review process (as applicable) in line with country environmental requirements and international environmental and social safeguard policies and guidelines

● Confirm that partners engage qualified and experienced environmental and social experts to undertake ESIA studies

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Intervention Category Potential Impacts ● Mitigation (minimum)

○ Monitoring Measures

● Air pollution and dust from vehicular and machinery sources during construction

● Water pollution and siltation during construction due to ineffective 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

● Improper storage, handling, processing, or final disposal of wastes, waste byproducts, or wastewater generated during project activities

● Obtain and review copies of any ESIAs, resettlement action plans (RAPs) and livelihood restoration plans (LRPs) and evaluate compliance against country regulations, good international industry practice, and USAID requirements.

● Confirm that environmental assessments consider air, water, and soil pollution; habitat and biodiversity conservation; land take and land tenure issues; potential climate change; stakeholder engagement and consultation; and waste management.

● To the extent possible, encourage developers / partners to address any vulnerabilities or gaps in any ESIA or RAP/LRP.

● Ensure that project specific EMMPs are responsive to impacts and that the mitigation measures become contractual requirements.

● Implement a community grievance mechanism

E: On-site field support ● Inadequate compliance to health and safety regulations leading to in-field incidents and accidents

● Improper storage, handling, processing, or final disposal of wastes, waste byproducts, or wastewater generated during field support activities

● Ensure that site safety risk assessments are undertaken and contingencies are in place

● IP to adhere to EHS plans of operational power plants at all times, as well as IP’s own EHS plan prior to conducting site visits

● Ensure that waste management practices cover handling, storage, processing, and final disposal of wastes

IP to develop a single Environmental, Health and Safety (EHS) plan for USAID approval to provide restrictive conditions and protective measures for avoiding adverse environmental, health, and safety impacts. The EHS plan must include a form for identifying and communicating site hazards at each field support site.

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Intervention Category Potential Impacts ● Mitigation (minimum)

○ Monitoring Measures

F: Direct support or funding for specific projects

Site selection

● Site selection with inadequate consideration of environmental factors increasing cost of mitigation or rendering project fatally flawed

● Involuntary displacement of people, triggering physical resettlement

● Siting of energy generation and distribution systems on communal land or farmland, triggering economic resettlement

Construction

● Loss of sensitive habitat, species of conservation concern, agricultural land, or sites of cultural significance during construction

● Air pollution and dust from vehicular and machinery sources during construction

● Pollution from discarded waste materials during construction

● Leaching pollutants into the environment resulting in water and soil contamination

● Siltation during construction due to ineffective erosion control

Operation

● Diminished air quality from thermal power systems, including biomass and diesel backup systems, resulting in community health concerns during operation

● Public health and environmental risks from inappropriate storage, handling, processing, and final disposal of wastes, Implement Screening system identified in Section 4.2.

In addition, EMMPs tiered from the screening should, where applicable:

Funding

● Prior to the design stage, identify activities in project pipelines / work plans potentially requiring funding of Scoping Statements and Environmental Assessments (EA) consistent with a Positive Determination

Site selection

● Incorporate environmental and social risk into site or right-of-way selection criteria and consider alternatives sites or alignments in feasibility studies

● Avoid siting projects and distribution lines in sensitive habitats or areas of biodiversity concern

● Avoid siting projects in areas requiring physical human resettlement.

● Limit economic resettlement as far as possible, including disruptions due to land use changes or disturbance of communal land

● Align distribution rights-of-way as close as possible to other linear infrastructure to minimize disturbance of natural resources and minimize land take that may lead to economic resettlement

● Where possible, select project sites in transformed or degraded areas already impacted by infrastructure development

Design

● IP to obtain copies of any ESIA studies and resettlement action plans (RAP) and/or livelihood restoration plans (LRP) in the event of physical and/or economic resettlement. Evaluate compliance against country regulations and good international industry practice to ensure that reporting is of an acceptable standard and that project environmental and social impacts are acceptable to the IP and USAID

● Obtain environmental permits and clearances in accordance with country legislative requirements

● Undertake stakeholder engagement processes including authorities and local communities in accordance with good international industry practice

● For thermal power projects / systems, ensure that air quality thresholds are not adversely affected or that installations do not degrade local air quality

● For projects extracting groundwater or surface water, implement monitoring measures to prevent over-abstraction of water

● Conduct comprehensive waste management screening to identify potential wastes to be generated through project planned activities.

● Ensure that risks and impacts underlying improper waste management such as inappropriate handling, storage, processing, and final disposal associated with waste streams are taken into account in the project IWMP

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Intervention Category Potential Impacts ● Mitigation (minimum)

○ Monitoring Measures waste byproducts, domestic wastes, or wastewater.

● Improper end-of-life disposal of PV panels and batteries

Procurement

● Articulate environmental and social compliance requirements in tender documentation

● Require a project-specific ESMP to be in place prior to construction

● Consider sustainable end-of-life (EOL) requirements of products/ materials in the procurement process to facilitate appropriate final disposal

Construction

● Inform local communities of the intended work plan and construction schedule

● Ensure a project-specific ESMP is in place prior to construction

● Limit construction footprint as much as possible to minimize disturbance to natural resources and communities

● Implement a community grievance mechanism

● Ensure that construction/ site-specific wastes management practices adhere to the project’s integrated waste management plan (IWMP)

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4.2. SCREENING SPECIFIC PROJECTS

Intervention Categories D (Technical assistance for specific projects) and F (Direct support or funding for specific projects) require use of a screening tool to evaluate the potential environmental and social impacts of the specific projects and to develop mitigation measures to reduce any impacts below the level of significance.

The 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 IPs approved work plan that involve technical assistance, direct support, or funding for specific projects. The screening tool may be developed to focus on site-specific interventions or to cover one or more categories of substantially similar interventions. The screening tool developed by the IP must be approved by the AOR/COR, Power Africa MEO, and the AFR Bureau BEO before implementation. No interventions subject to screening may proceed until and unless the screening tool has been completed and approved.

Tool components. The screening tools should include:

● A tracking system for the screening actions and for recording the results of the screening.

● A detailed description of the planned intervention. The description should explain the physical actions planned, the materials and resources to be used, and the baseline conditions at the site where the intervention will occur.

● Identification of the potential environmental and social impacts of the planned intervention.

● If baseline conditions or impacts are substantially different amongst interventions within a grouped analysis, this likely indicates a separate screening is necessary for that intervention.

Categorization following screening. The screening process will fit each proposed action into one of the following categories:

1) The proposed action(s) have no expected significant environmental impacts and may proceed without further review;

2) The action(s) are expect to have impacts that can be mitigated; an EMMP must be prepared for the planned action(s) (see EMMP guidance below);

3) The action is expected to have the potential for significant environmental impacts and appears to warrant a Positive Determination. In the event of a proposed action with the potential for significant environmental impacts that would justify a Positive Determination, Power Africa will consult the AFR BEO to verify the screening result and to decide on a way forward. If the action does warrant a Positive Determination, and if Power Africa chooses to move forward with the activity as designed, then a Scoping Statement and an Environmental Assessment would normally follow. Alternative paths forward in such a case could include redesigning the activity to avoid the impactful elements, or choosing not to pursue the activity.

Mitigation and monitoring. EMMPs will include and expand upon the information in the screening tool, plus include:

● Mitigation measures to reduce any impacts below the level of significance.

● An explanation of how the effectiveness of the mitigation measures will be monitored.

● A description of how the environmental and social outcomes of the intervention will be reported to Power Africa.

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5. MANAGEMENT AND REPORTING

5.1. USAID IMPLEMENTATION AND MONITORING REQUIREMENTS FOR AWARDS

The environmental determinations in this IEE are contingent upon full implementation of the following pre- and post-award requirements.

Changes to scope of awards require a determination be made as to whether such change may have an environmental impact not previously assessed (per §216.3(a)(9)). Per ADS 204, it is the responsibility of the AOR/COR to keep the MEO/REA and BEO informed of any new information or changes in the activity(ies) subject to this IEE.

5.1.1. During Pre-Award:

5.1.1.1. Pre-Award Briefings: As feasible, the design team and/or the cognizant environmental officer(s) (e.g., MEO, REA, BEO) will provide a pre-award briefing for potential offerors on environmental compliance responsibilities at bidders’ conferences.

5.1.1.2. Awards: The AOR/COR, in coordination with the AO/CO, will ensure all awards and sub-awards include environmental compliance requirements stated in this IEE. See ADS 204sac for recommended language for use in solicitations and awards.

5.1.2. During Implementation:

5.1.2.1. Post-Award Briefings: The AOR/COR and/or the cognizant environmental officer(s) (e.g., MEO, REA, BEO) will provide post-award briefings for the IP on environmental compliance responsibilities, including applicable environmental requirements in the country.

5.1.2.2. Work Plans and Budgeting: The AOR/COR will ensure that activities remain within the scope accessed in this IEE and that IPs integrate environmental compliance requirements though work plans and budgets to comply with specified requirements, including Environmental Mitigation and Monitoring Plan (EMMP) implementation and monitoring (if required by the IEE).

5.1.2.3. Environmental Mitigation and Monitoring Plan: The AOR/COR, in consultation with the MEO and/or REA, will ensure the IP develops, obtains approval for, and implements EMMPs to adequately address impacts. The AOR/COR must approve the EMMP and the cognizant environmental officer(s) (e.g., MEO, REA, or BEO) should provide clearance.

5.1.2.4. Records Management: The AOR/COR will maintain environmental compliance documents in the official activity file and upload records to the USAID Environmental Compliance Database.

5.1.2.5. Monitoring Oversight: The AOR/COR or designee, with the support of the cognizant environmental officer(s) (e.g., MEO, REA, or BEO), will ensure compliance with established requirements in the IEE and EMMPs is properly monitored, e.g., desktop reviews, site visits, etc.

https://www.usaid.gov/about-us/agency-policy/series-200/references-chapter/204sac

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5.1.2.6. Environmental Compliance Reporting: The AOR/COR, in consultation with the cognizant environmental officer(s) (e.g., MEO, REA, or BEO), will ensure the IP includes environmental compliance in regular activity reports, using indicators as appropriate; develops and submits the Environmental Mitigation and Monitoring Reports (EMMRs), describing implementation of EMMP requirements..

5.1.2.7. Corrective Action: When noncompliance or unforeseen impacts are identified, the AOR/COR will initiate the corrective action process, in consultation with the cognizant environmental officer(s) (e.g., MEO, REA, or BEO). The Corrective Action Plan is used to document findings, recommendations, and a timeline for making the corrections.

5.1.2.8. Activity Closeout: AOR/CORs must ensure that compliance with this IEE is verified during the closeout process. A summary of how mitigation and monitoring requirements were met should be included in the verification. The Record of Compliance may be used to document this requirement.

5.2. SPECIAL INSTRUCTIONS FOR ENVIRONMENTAL COMPLIANCE

5.2.1. Sub-award (Grant and Sub-contract) Screening: The AOR/COR will require the IP to use appropriate screening tools for ensuring activities described in the sub-award application are within the scope of the prime award IEE and that adequate environmental safeguards are part of sub-award implementation.

ATTACHMENTS: Annex 1: Climate Risk Management Summary and Table

BUREAU RESOURCE LINKS: If desired, add URLs to Bureau specific resources and guidance

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ANNEX 1. CLIMATE RISK MANAGEMENT SUMMARY AND TABLE

CLIMATE RISK MANAGEMENT SUMMARY

This section summarizes the methodology used and findings of the CRM Screening, in accordance with ADS 201mal. The design team, in consultation with the CIL, considered the potential effect of climate risks/stressors on the sustainability of the activity in the table below (changing precipitation patterns, rising temperature, floods, droughts, fires, landslides, etc.) in addition to the…