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MINISTRY OF ENERGY AND COAL INDUSTRY OF UKRAINE
                    (MECIU)




    Second Power Transmission Project (PTP – 2)




       (Component 3 “Institutional Strengthening of MoECI�)




                           June 2014




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INTRODUCTION

This Environmental Management Framework (EMF) has been prepared for the Second Power
Transmission Project (PTP2), which will be financed by the World Bank Loan. Component 3
“Institutional Strengthening of MoECI� (US$2.5 million IBRD) will finance technical assistance
to MoECI on (a) procurement, financial management and project management; (b) development of
feasibility studies for future projects in the energy sector, and financing of training, and (c) carry out
analytical work related to implementing Energy Sector Reforms based on action plans (Annex 8-1
of the PAD) designed and agreed with MoECI and other stakeholders. Environmental safeguard
policies of the Bank are being applied to both investment and technical assistance projects or project
components.

Objective

This EMF is designed to ensure that sustainable environmental management principles and practices
are integral part of the technical assistance to be financed by the PTP-2. The EMF aims to establish
a process to implement key principles of environmental sustainability in future projects, for which
feasibility studies will be prepared under the TA (Component 3), identify and assess potential
environmental and social impacts and incorporate measures that ensure compliance with both GoU
and the World Bank safeguards and maximize environmental benefits. Specifically, under the PTP-
2 financed feasibility studies, environmental sustainability, protection of human health and
ecosystems will be an objective.

World Bank Safeguard Policies

The Integrated Safeguards Data Sheets (ISDS) prepared for the PTP-2 classified the project as
Category “B�, triggering the WB safeguard policy for environmental assessment.
Environmental Assessment (OP 4.01).The potential environmental impacts resulting from the
technical assistance activities (e.g. for the development of feasibility studies for future projects in
the energy sector and carrying out analytical work related to implementing Energy Sector Reforms
based on action plans, etc.) in the PTP-2 trigger this safeguard policy. Potential impacts are
anticipated to be positive rather than negative in nature and any potential adverse impacts will be
prevented or reduced through appropriate screening procedures and technical assistance. This EMF
ensures that principles and approaches of environmental and social sustainability are applied in the
process of implementation of the technical assistance to satisfy this safeguard policy.


The Process of Integration of Environmental and Social Aspects

To ensure that technical assistance activities financed under the PTP-2 reflect sound principles of
environmental management and social sustainability, the project would aim to integrate - to
maximum extent possible - principles and approaches towards environmental and social
sustainability into formulation of the technical assistance/feasibility studies TORs, tasks of the extert
teams, work of specialists and representatives of energy (transmission/generation) companies and
other actors broadly. For this purpose, the Project Implementation Unit (PIU) within the MoECI will
contract environmental/social expertise in order to ensure these environmental and social
sustainability aspects are integrated. The process will have two stages. During the first stage, the
TORs for specific TA tasks/feasibility studies will be reviewed and, if necessary, modified to ensure
their compliance with principles of environmental sustainability, pollution prevention and
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minimization of human health risks. In addition to ensure social sustainability, the TORs will also be
reviewed to ensure all interested stakeholders will have the opportunity participate in planning and
decision-making processes. In case of non-compliance with above principles, the TORs will have to
be revised. Later on the draft TA outputs (feasibility studies, recommendations, action plans,
investment programs, etc.) will be reviewed and, if needed, revised to ensure that the above
integration of environmental and social sustainability aspect has in fact been done effectively.

Capacity Building for Environmental Screening, Assessment and Management

The PTP-2 will provide national expertise to deliver capacity building and training to PIU
management and staff to build capacity for effective environmental management under the project,
including environmental screening, assessment, and mitigation of potential negative impacts that
may result from implementation of TA (feasibility studies, recommendations, action plans,
investment programs, etc.). Such capacity building will be provided to the PIU staff and specialists
of the MoECI and will include participatory training on the specific environmental issues and
mitigation measures identified by the screening.

Disclosure and Consultations

Draft EMF will be published prior to project appraisal for comments and consultation, to be
incorporated in a final EMF which also will be published.

Disclosure and consultation procedures will apply to feasibility studies for investment projects and
other documents which outline options for potential investments entailing environmental impacts.
For these documents public consultations will be organized in order make an inventory of potential
environmental issues of public interest which should be taken into account during preparation of
feasibility studies or documents mentioned above.

Implementation Arrangements

Implementation of the EMF will be done by the PIU established within the MoECI. The PIU has
overall responsibility for implementation of the PTP-2 and will ensure that the EMF is fully
integrated into implementation of the project. In order to ensure integration of potential
environmental and social sustainability aspects into the expected project outputs, the PIU will
contract environmental and social expertise to undertake review of the TORs and draft TA outputs
with regard to their compliance with principles of environmental and social sustainability. The PIU
on behalf of the MoECI will be responsible to conduct the screening process, disclosure of
documents, training and other activities related to maximizing environmental benefits of the project.




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