INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA3350 Public Disclosure Copy Date ISDS Prepared/Updated: 05-Jun-2013 Date ISDS Approved/Disclosed: 05-Jun-2013 I. BASIC INFORMATION 1. Basic Project Data Country: Comoros Project ID: P131659 Project Name: KM-Electricity Sect. Recovery Proj(FY14) (P131659) Task Team Mustafa Zakir Hussain Leader: Estimated 03-Jun-2013 Estimated 26-Sep-2013 Appraisal Date: Board Date: Managing Unit: AFTG1 Lending Specific Investment Loan Instrument: Sector(s): General energy sector (100%) Theme(s): Infrastructure services for private sector development (65%), State-owned enterprise restructuring and privatization (35%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Financing (In USD Million) Public Disclosure Copy Total Project Cost: 5.00 Total Bank Financing: 5.00 Total Cofinancing: Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 0.00 IDA Grant 5.00 Total 5.00 Environmental C - Not Required Category: Is this a No Repeater project? 2. Project Development Objective(s) The Project Development Objective is to contribute to the improvement in the electricity sector's commercial and financial performance. 3. Project Description The proposed Project includes the following three components: Page 1 of 4 Component 1: Assistance to the Electricity State Owned Enterprises Commercial and Financial Performance Recovery. (Total Cost: US$3.50 million - IDA US$3.50 million). This component will Public Disclosure Copy include three related sub-components: - Sub-component 1.a: Commercial and Financial Technical Assistance. The Project will finance senior experts that will work with the current management to lead the commercial and financial restructuring of the utilities. Considering the small size of the Comorian system, the permanent presence of a relatively small number of senior experts is expected to go a long way towards reinstating the basics of sound power utility management. Key senior experts are expected to be hired once the Restructuring and Development Plan is finalized and accepted by the Comorian sector authorities and the Bank. The senior experts will be in place for at least two years (preferably three years) with the possibility of extension - and will initially support MA-MWE´s commercial and financial divisions, reporting directly to MA-MWE´s Managing Director. Once the plan for the recovery of MA-MWE is under implementation, and learning from that experience, the senior experts could also review the situation at EDA (if requested). - Sub-component 1.b. Commercial and Financial Performance Enhancement. This sub-component will provide the required resources for the implementation of the state-owned enterprises´ commercial recovery. One of the key functions of the senior experts procured under Component 1a will be to analyze the specific needs in terms of management systems for billing, accounting, customer management, etc. and equipment and recommend the most appropriate ones for the utility. This sub-component will complement the first by financing the acquisition of the recommended systems and raising public awareness of the GoC’s reform plan. It will include four main activities: • Purchase of management information systems (MIS) and hardware. • Purchase of Network Metering Equipment. • Poverty and Social Impact Analysis (PSIA). • Communications and Awareness Campaign. Component 2: Electricity Sector Governance. This component will finance technical assistance, capacity building activities and studies related to key aspects of sector governance. Specifically, this Public Disclosure Copy component would provide support to the energy sector institutions (Vice-presidency in charge of energy, department of energy, etc.) through the hiring of external experts and the provision of training (including workshops) to perform key functions from the following: i) definition of an energy policy including review of sector governance arrangements (i.e. appointment of MA-MWE Board and management to make the accountability framework clearer) and its implementation; ii) definition of a legal and regulatory framework and its implementation; and iii) development of planning capacity (through, among others, the preparation of a generation expansion plan and to provide the tools – training, capacity building, software, etc for investment decision making, implementation). Component 3: Project Management. This component would support the overall coordination, management and monitoring functions of the Project carried out by a Project Implementation Unit (PIU). It will also finance certain project preparation activities. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) Island of Grande Comore, Island of Anjouan, Island of Moheli. 5. Environmental and Social Safeguards Specialists Paul-Jean Feno (AFTN1) Page 2 of 4 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ No Public Disclosure Copy BP 4.01 Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 No Physical Cultural Resources OP/ No BP 4.11 Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP No 4.12 Safety of Dams OP/BP 4.37 No Projects on International No Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No 7.60 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the Restructured project. Public Disclosure Copy Identify and describe any potential large scale, significant and/or irreversible impacts: The Project will not finance construction of new infrastructure and it will not lead to land acquisition nor will it deprive people of access to their usual means of livelihood. The Project will fund consultancies for improvement of commercial and financial recovery of the utilities, studies for sector policy and the acquisition of electricity meters, management information systems, hardware and software equipment in the commercial and technical areas, thus, no significant adverse environmental or social impacts are anticipated. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: NA 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. NA 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. NA 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Page 3 of 4 NA B. Disclosure Requirements Public Disclosure Copy If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level OP 7.60 - Projects in Disputed Areas Yes [ ] No [ ] NA [ ] The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures Public Disclosure Copy related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader: Mustafa Zakir Hussain Approved By Sector Manager: Name: Lucio Monari (SM) Date: 05-Jun-2013 Page 4 of 4