(ESRS Concept Stage) Concept Environmental and Social Review Summary Concept Stage

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                                       The World Bank
                                       Renewable Energy Development Project (P170236)
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                                              Concept Environmental and Social Review Summary
                                                                          Concept Stage
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                                                                    (ESRS Concept Stage)
       Public Disclosure

                                                       Date Prepared/Updated: 08/26/2020 | Report No: ESRSC01557
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                               Aug 26, 2020                                                                        Page 1 of 12
The World Bank
                               Renewable Energy Development Project (P170236)

                     BASIC INFORMATION

                     A. Basic Project Data

                     Country                       Region                           Project ID                     Parent Project ID (if any)

                     Cabo Verde                    AFRICA WEST                      P170236

                     Project Name                  Renewable Energy Development Project

                     Practice Area (Lead)          Financing Instrument             Estimated Appraisal Date       Estimated Board Date

                     Energy & Extractives          Investment Project               11/26/2020                     3/31/2021
                                                   Financing

                     Borrower(s)                   Implementing Agency(ies)

                     Republic of Cabo Verde,       Special Project Management
                     Ministry of Finance           Unit

                     Proposed Development Objective
                     The proposed project development objective is to increase electricity generation from renewable energy sources in
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                     Cabo Verde.

                     Financing (in USD Million)                                                                                         Amount

                      Total Project Cost                                                                                                     15.00

                     B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF
                     Policy, para. 12?
                     No

                     C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and
                     Relationship to CPF]
                     The project is comprised of three components:

                     Component 1: Infrastructure investments (USD 11 million). This component will support the construction of small-
                     scale solar power plans as well as grid expansion / reinforcement and installation of energy storage facilities to
                     support renewable energy integration. Based on the priority needs of the GoCV, the proposed Project will support the
                     following projects, which are included in the first phase of the energy sector Master Plan: a) two solar PV IPPs: 5 MW
                     on São Vicente and 5.6 MW on Sal islands; and b) four small-scale solar PV projects: 1.3 MW on Fogo; 1.2 MW on
                     Santo Antão; 0.4 MW on Maio; and 0.4 MW on São Nicolas islands.

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The World Bank
                              Renewable Energy Development Project (P170236)

                     Sub-component 1a: Small-scale renewable energy generation (est. USD 4 million)

                     The small-scale power plants in the four small islands (1.3 MW on Fogo; 1.2 MW on Santo Antão; 0.4 MW on Maio;
                     and 0.4 MW on São Nicolas islands) are unlikely to attract private developers. This sub-component will therefore be
                     used to finance the development of those power plants.

                     Sub-component 1b: Grid improvements (est. USD 6 million)

                     This sub-component will finance new transmission and distribution lines required to connect the new generation
                     facilities (two IPPs in São Vicente and Sal as well as four power plants in Fogo, Santo Antão, Maio and São Nicolas) and
                     the reinforcement (substation upgrades) of Santiago’s transmission and distribution infrastructure. Those investments
                     will solve under-voltage and line over-loading issues resulting from the fact that the load areas are usually far away
                     from the RE generation sites.

                     Sub-component 1c: Energy storage facilities (USD 1 million)

                     In the short to medium term, the GoCV intends to explore the use of battery storage facilities to smoothen demand
                     and supply fluctuations, thereby supporting voltage and frequency regulation of the grid, particularly in smaller
                     islands of the archipelago where high-voltage grid is not available. An amount of USD 1 million will be used to finance
                     pilot facilities based on the results of the study that is being financed by the grant from ESMAP’s Integrating Variable
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                     Renewables program .

                     Component 2: Public Investment (USD 2 million)

                     This Component will focus on public investments in rooftop PV systems on public buildings, particularly those entities
                     with poor history of timely payment of electricity bills, such as the Ministry of Health (health centers and hospitals),
                     Ministry of Justice, and the National Police Directorate. This would have a positive financial impact on the
                     Government, who would benefit time from a reduction in the budget allocation required for public electricity bills,
                     and on Electra, which would see a reduction in outstanding debts from public sector clients.

                     Component 3: Technical assistance and capacity building (USD 2 million)

                     This sub-component will support expenses related to the project’s preparation and implementation, including an
                     owners engineer and/or consultants as well as stakeholder engagement, trainings, workshops, and travel.

                     It will support the preparation of additional technical studies that may be required during preparation and/or
                     implementation, to be identified during the preparation phase. It will also support a communications campaign to
                     support scale-up of distributed generation. This component may also include support for transaction advisory for
                     future IPP structuring, if desired by the GoCV (to be confirmed during preparation).

                     D. Environmental and Social Overview

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The World Bank
                              Renewable Energy Development Project (P170236)

                     D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic,
                     environmental, social]
                     The Cape Verde Islands are situated in the eastern Atlantic, approximately 500 km off the coast of Senegal, West
                     Africa. The archipelago consists of 10 islands (nine of which are inhabited) and several uninhabited islets.
                     Cabo Verde’s population is growing at an average annual rate of 1.5% which, combined with the natural, landscape,
                     and cultural conditions, explains the importance of biodiversity conservation in the country, in all its aspects - genetic,
                     specific, taxonomic, ecological and functional. Apart from the ecological importance, biodiversity supports all
                     economic activities, particularly: (i) agriculture, forestry and livestock; (ii) fishing; (iii) seaside and beach tourism; (iv)
                     water, recreational and leisure sports; and (v) ecotourism / nature tourism.
                     The economy of Cape Verde is primarily based on agriculture, although only 10 percent of the land is arable. Roughly
                     one-third of the population are farmers. The islands produce bananas, corn, beans, sugarcane, coffee, and some fruits
                     and vegetables, but supply less than one-fifth of the country's needs. Remittances from Cape Verdeans living abroad
                     also make a considerable contribution to the economy and GNP. Farmers are generally the populations who settle on
                     unoccupied land to expand their crops, it is likely that these will be the target populations for social studies (RAP) to
                     be carried out.
                     Cabo Verde’s culture is defined by its colonial history as it was completely uninhabited when Portuguese sailors first
                     landed there between 1456 and 1460. The remains of this period are concentrated at the Cidade Velha and Alcatraz.
                     These are not cities impacted by the project.

                     The most important environmental aspect concerns the biodiversity-rich areas that could be impacted by the
                     investments under this Project. Several decrees have been drawn to classify certain areas as nature reserves, which
Public Disclosure

                     will allow the project to delimit the site and the passage of electricity lines near these areas in order to avoid having
                     an impact on these areas (e.g. Decreto-Regulamentar n.º 1/2014 : delimitation of the Monte Alto das Cabaças Nature
                     Reserve). The Fogo National Park, which hosts endemic species on the island of Fogo, is located outside the project
                     area, and the project team will ensure that the project intervention areas will not affect sensitive ecosystems, through
                     planned Environmental and Social Impact Assessments. A determination will be made by project appraisal, based on
                     the identified project areas.

                     On the social side, the installation of solar PV power plants, distributed generation and electrical networks will likely
                     present risks similar to those traditionally associated with infrastructure works. Land acquisition may be required. The
                     latter may also affect livelihood activities (e.g. roadside vending), especially if cable burying is required in or around
                     densely populated urban centers.
                     The scope of these activities implies environmental and social risks that will be assessed in-depth through the
                     Environmental and Social Impacts Assessments process during project preparation as technical details become
                     available.
                     D. 2. Borrower’s Institutional Capacity
                     The project implementation unit (PIU), the UGPE, has prior experience with World Bank investment projects. The PIU
                     has prepared and implemented 6 projects under the Operational Policies (Safeguards) and is currently preparing
                     another project under the ESF, the Enabling Digital Cabo Verde as a Regional ICT Hub project (P171099). PIU staff
                     benefited from several rounds of trainings on the World Bank’s Operational Policies and, more recently, on the ESF.

                     The PIU will constitute a project team to be headed by a project coordinator with day-to-day responsibility for
                     implementing the project. Component 3 Technical assistance and capacity building of the project will provide funding

                    Aug 26, 2020                                                                                                           Page 4 of 12
The World Bank
                              Renewable Energy Development Project (P170236)

                     to strengthen UGPE’s project implementation capacity. Environmental and social experts will be hired to help to
                     prepare and implement the environmental and social documents for this specific project.

                     The wide geographic scope of the proposed operation and the technical skills required for this project may require
                     additional staffing that will be determined during preparation. During preparation, the World Bank project Team
                     (including E&S specialists) will discuss with the PIU to determine team deployment and identify what additional
                     resources, skill sets, or capacities will need to be strengthened. These will be reflected in the Appraisal ESRS.

                     II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS

                     A. Environmental and Social Risk Classification (ESRC)                                                          Moderate

                     Environmental Risk Rating                                                                                       Moderate
                     The environmental risk classification for the Project is moderate at this concept stage, as potential risks and impacts
                     on the environment are not expected to be irreversible, based on the nature and location of the project activities as
                     presently known. According to the transmission it will be a medium voltage (20 kV) transmission/distribution lines (in
                     those small islands, to simply connect the power plants to the grid within a relatively short distance. The
                     Environmental risks that may arise during the construction phase are : (i) habitat disruption from the civil work
                     activities of laying cables, (ii) disposal and management of generic waste (iii) occupational health and safety of
                     workers, (iv) nuisances related to air and noise emissions, (v) community health and safety, (vi) cultural heritage.
                     During the exploitation phase, only a few maintenance works could generate moderate risks related to the
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                     occupational health and safety of workers and the disposal and management of generic waste.
                     The general areas of the projet selected for the installation of solar panels have been defined by Decree Law (Decree
                     Law no. 1/2011 - Renewable Energy Development Zones (Zonas de Desenvolimento de Energia Renovável, or ZDERs)
                     for, inter alia, their location denied of all sensitive ecosystems or particular risks. Nevertheless the project team will
                     ensure that the project intervention areas will not affect sensitive ecosystems, through Environmental and Social
                     Impact Assessments.

                     For one of the most ecologically sensitive part of Cape Verde, the Fogo National Park, which hosts endemic species on
                     the island of Fogo, the project team will ensure that the project interventions areas is located outside the project
                     area, through Environmental and Social Impact Assessments. A determination will be made by project appraisal,
                     based on the identified project areas.

                     The project will cover a wide geographical area that spreads across the islands. Based on the nature and scale of the
                     proposed project activities identified – construction of small-scale solar power plans, grid expansion/reinforcement
                     and installation of energy storage facilities to support renewable energy integration, as well as distributed generation
                     investments – this operation entails moderate environmental risks.

                     However, majority of the impacts likely to be generated from the project activities can be mitigated with measures
                     that are readily identifiable. The risk rating will be revisited when more details are known.
                     Social Risk Rating                                                                                              Moderate

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The World Bank
                              Renewable Energy Development Project (P170236)

                     The main social risk relates to the planned infrastructure works, including the construction of the six power plants,
                     grid reinforcements and battery storage. These civil works might entail land acquisition, leading to temporary or
                     permanent physical or economic displacement. The scope and exact location of these potential impacts will only
                     emerge during the feasibility studies. Another risk associated with the civil works are negative impacts on
                     communities as a result of labor influx during construction, including the risk of gender-based violence and/or sexual
                     exploitation. The scope of this risk will become clearer once the labor needs have been identified during project
                     preparation. Similarly, any construction project raises the issue of labor conditions, including working hours,
                     occupational health and safety, etc.

                     The project will prepare instruments in accordance with the requirements of the applicable environmental and social
                     standard of the Bank (ESS5, Land Acquisition, Restriction on land use and Involuntary resettlement). As the exact sites
                     for the construction are not known, a Resettlement Policy Framework will be prepared to guide the preparation of
                     site-specific RAPs to be prepared once the technical studies and designs have been completed.

                     B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered

                     B.1. General Assessment

                     ESS1 Assessment and Management of Environmental and Social Risks and Impacts
                     Overview of the relevance of the Standard for the Project:
                     The review considered the anticipated environmental, social and health risks presented by the project and the
                     requirements to manage the risks in compliance with the Bank’s ESF(i.e. IBAT, E&S consultant reports, PCN,
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                     documents on biodiversity in Cape Verde). The specific locations at the level of the selected islands for the
                     implementation of the project activities is not yet known. Based on previous Bank experience of Cabo Verde, the
                     scope and scale of the anticipated risks are expected to be site-specific, limited, localized and largely manageable.
                     The proposed project is anticipated to have direct and indirect environmental and social benefits, including the
                     decrease of CO2 emission and other air pollutants through the integration of more clean electricity from renewable
                     sources, possible reduction in the price of electricity and increase in PIU capacity building. At the same time, potential
                     negative environmental impacts and safety risks are also expected. The main environmental and social risks could be
                     related to the civil works, environmental disturbances, and land acquisition and resettlement.

                     Ahead of the project appraisal, and consistent with ESS1, the Borrower will prepare, for the transmission lines, an
                     Environment and Social Management Framework (ESMF) and a Ressetlement Policy Framework (RPF) acceptable to
                     the Bank. ESIAs/ESMPs, RAPs would be completed at a later stage once the specific sites are known. The ESIA will be
                     consulted on with stakeholders prior to finalization, reviewed and approved by the Bank, and publicly disclosed.
                     For the sites of solar panel, the Borrower is required to prepare Environmental & Social Impact Assessments (ESIAs),
                     Environmental and Social Management Plans (ESMPs) prior to Appraisal. Site-specific resettlement action plans
                     (RAPs) will be prepared in line with the technical studies to address any identified land acquisition needs, prior to
                     Appraisal. A GBV assessment and an Action plan including an Accountability and Response Framework needs to be
                     developed as part of each site-specific ESMP.
                     The ESIAs should provide an overview of key risks and impacts per potential solar power plant/per island and provide
                     inputs into the project design and analysis of alternatives. Each ESIA/ESMP will clearly define mitigation measures for
                     construction and operational phases, roles and responsibilities, time plans, costs and implementation procedures for
                     each mitigation measures recommended.

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                              Renewable Energy Development Project (P170236)

                     Contractors will be required, as a condition of their contracts with the Project, to implement and comply with the
                     ESMPs, including Labor Management Procedures and Occupational Health and Safety measures outlined in the
                     ESMPs. Contractors and their workers will also be subject to and trained on codes of conduct which includes GBV/SEA
                     measures, interacting with local communities and security provisions.
                     Labor and working conditions (including labor influx) and GBV Management and Mitigation: The findings of the
                     Bank’s initaial GBV Risk Assessment will guide the identification of GBV risks and the subsequent development of
                     mitigation plans. This assessment will be carried out before appraisal during the ESIA preparation. The LMP will also
                     describe the working conditions and include measures for any gaps with the Bank’s ESF. There is a priori no
                     vulnerable groups in the surroundings of the project sites. The presence of vulnerable groups will be determined
                     during the preparation of the ESMF, RPF and ESIA. Additional measures will be added to support the vulnerable
                     groups.
                     GRM: A project-wide GRM, proportionate to the potential risks and impacts of the project, will be established. In
                     addition, a GRM specifically for direct and contracted workers will be established, taking into account national law
                     and the requirements of ESS 2. Both GRMs will be designed at an early stage and will be established by project
                     effectiveness. IPPs will also be required to prepare a GRM.
                     The ESMPs and Bidding Documents prepared for the project will include a Health, Safety and Environmental (HSE)
                     plan in line with World Bank Group Environment, Health and Safety (EHS) Guidelines.
                     The Environmental and Social Commitment Plan (ESCP) will summarize the material measures and actions for the
                     project to meet the ESSs requirements. The agreed measures and actions between the Borrower and the Bank will be
                     outlined in the ESCP with the timeline for completion and responsible parties, including the preparation of site
                     specific ESMPs and RAPs, as needed, and additional risk management documents that may be identified during
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                     project preparation or during the elaboration of the ESIA.
                     Areas where “Use of Borrower Framework” is being considered:
                     The operation will not use the Borrower’s E&S Framework in the assessment, development and implementation of
                     subprojects. During preparation, relevant domestic regulations and their enforcement will be reviewed against the
                     requirements of ESS4 and the World Bank’s applicable Environmental, Health and Safety Guidelines to support the
                     assessment and mitigation measures proposed in the ESMP/ESCP.

                     ESS10 Stakeholder Engagement and Information Disclosure
                     At this concept stage, there is limited information on all the likely stakeholders. However, the identified stakeholders
                     are: Ministry of Energy, ELECTRA (electricity utility company), the Bank, Chamber of Commerce NGOs local
                     communities on the islands where project activities will take place, Regulatory agencies, ministry of environment and
                     all non-governmental organizations that provide a link between local people and governments. The Borrower will, - in
                     collaboration with the Bank - prepare, by project appraisal, an inclusive Stakeholder Engagement Plan (SEP)
                     proportional to the nature and scale of the project and associated risks and impacts identified.
                     Stakeholder engagement will be an integral part of the preparation and overall project design process and will
                     continue throughout preparation.
                     The Stakeholder Engagement Plan will include consultations on the proposed location of plants, particularly where
                     encroachment has taken place in designated public areas, temporary or permanent physical displacement and/or
                     economic losses as a result of project activities, etc.
                     The interest for the population is a wider and cheaper access to electricity. The project team will make sure that the
                     populations impacted by the project works will be very limited and compensated if necessary.

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The World Bank
                              Renewable Energy Development Project (P170236)

                     The SEP will include differentiated measures to allow the effective participation of and communication with
                     disadvantaged or vulnerable groups. The Borrower will seek stakeholder feedback and opportunities for proposed
                     future engagement, ensuring that all consultations are accessible, inclusive and through suitable channels in the local
                     context. The project will include appropriate institutional arrangements to carry out the stakeholder engagement
                     process. The project will also include a grievance redress mechanism (GRM) to handle complaints by project-affected
                     people regarding adverse temporary or permanent project impacts. The GRM will be responsive to the risk of GBV by
                     including an appropriate channel for handling GBV complaints with sensitivity and in confidence, and the need to be
                     accessible to a wide diversity of stakeholder groups. It will also serve as a platform for continuous feedback from
                     project-affected communities, other interested stakeholders and implementing structures.

                     B.2. Specific Risks and Impacts

                     A brief description of the potential environmental and social risks and impacts relevant to the Project.
                     ESS2 Labor and Working Conditions
                     The project footprint will certainly require a moderate amount of labor - some construction machines and workers
                     for the installation of solar panels and transmission lines - due to the works that the project will undertake in the
                     project area (Four small-scale solar PV plants: 1.3 MW on Fogo; 1.2 MW on Santo Antão; 0.4 MW on Maio; and 0.4
                     MW on São Nicolas islands).

                     The project activities will require the engagement and deployment of moderate amounts of labor - direct workers
                     and contractors - on a short-term basis mainly and some people needed during the operational phase. There is a risk
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                     that these project workers might be subject to unfavorable contractual arrangements and working conditions. The
                     categories of workers likely to be included in the project are : PIU employees; construction firm and subcontractors
                     employees.

                     There is the possibility that the project will also hire local unskilled labor, to the extent possible, for some works, in
                     order to minimize the influx of unskilled labor and reduce the potential for harm and to encourage the local
                     economy. The Borrower will develop and implement Labor Management Procedures (LMP) which will contain, inter
                     alia, detailed information on working conditions, equal opportunities for employment (including women) and
                     measures to protect the health and safety of workers. The LMP will also explicitly prohibit child and forced labor and
                     include a grievance redress mechanism for projects workers and an explanation of the roles and responsibilities for
                     monitoring such workers.

                     ESMPs and Bidding Documents prepared for the project will include a Health, Safety and Environmental (HSE) plan in
                     line with World Bank Group Environment, Health and Safety (EHS) Guidelines. A Worker Health and Safety Plan will
                     also be developed to cover site-specific job hazards, provision of preventive and protective measures for all hazards;
                     information about safe working methods; and road safety measures. The plan will also include procedures on
                     incident investigation and reporting, recording and reporting of non-conformances, emergency preparedness and
                     response procedures and continuous training and awareness to workers.
                     Civil works contracts will incorporate E&S mitigation measures from the ESMP; LMP, EHS guidelines and OHS Plan. All
                     civil works contracts will include Codes of Conduct and other measures specified in the GBV action plan to prevent

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                              Renewable Energy Development Project (P170236)

                     GBV/SEA. For workers' accommodations, the Construction-ESMP will confirm if there will be onsite accommodation
                     of works.

                     ESS3 Resource Efficiency and Pollution Prevention and Management
                     The ESIAs will include an assessment of how resources will be managed efficiently to minimize waste generation,
                     harm to the environment, and the potential adverse impacts on human health. The ESMP in turn will present risk
                     management procedures to manage these issues using the mitigation hierarchy and to deal with construction debris
                     and hazardous or non-hazardous materials that may need to be disposed of. The ESIA will outline measures to ensure
                     the resilience of the investments by electricity network from storm surges or from human activities.
                     The need for natural resources (water, electricity, raw materials) and greenhouse gas emissions should be very
                     limited on these construction sites.

                     ESS4 Community Health and Safety
                     During construction: The Borrower will ensure that plans are in place to mitigate the risks associated with
                     construction activities to direct beneficiaries and neighbors. Key risks relate to construction works required to install
                     the solar panels and lay the electrical cables. These construction works may change traffic patterns impacting road
                     safety conditions, dust, noise and vibration, safety for construction areas including exposure to hazardous materials
                     and possible health risks associated with inappropriate storage/use of chemicals; health risks linked to inappropriate
                     disposal of waste. Other risks related to potential issues related to labor influx, including GBV/SEA, will be
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                     determined before appraisal.
                     During operation: the ESMP will include guidelines for the development of site-specific Emergency Response and
                     Preparedness Plans, which will include preparedness planning and training procedures, as well as operations-phase
                     facility maintenance requirements.
                     During preparation, relevant domestic regulations and their enforcement will be reviewed against the requirements
                     of ESS4 and the World Bank’s applicable Environmental, Health and Safety Guidelines to support the assessment and
                     mitigation measures proposed in the ESMP/ESCP. They will also be included as a requirement in civil works bidding
                     documents.

                     ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement
                     The implementation of the Component 1, will support the development of four small power plants in four Islands,
                     the two power plants in São Vincente and Sal and the electricity network to link them. This could lead to a land
                     acquisition.

                     The general areas of the projet selected for the installation of solar panels have been defined by Decree Law (Decree
                     Law no. 1/2011 - Renewable Energy Development Zones (Zonas de Desenvolimento de Energia Renovável, or ZDERs).
                     These areas were chosen because they are reserved for renewable energy projects and should be free of populations
                     and not cause involuntary resettlement. Nevertheless, compliance with this decree law has not always been enforced
                     at municipal level and parts of these areas have been sold to private individuals. This could lead to land acquisition
                     resulting in economic displacement and/or involuntary resettlement. The project will prepare, consult upon and

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                              Renewable Energy Development Project (P170236)

                     disclose Resettlement Action Plans (RAP) for the sites of the Solar Panel and Resettlement Policy Framework (RPF) for
                     the transmission line before project appraisal.

                     ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources
                     This standard is relevant. The project will cover a wide geographically area that spreads across the islands, indeed,
                     the project activities are likely to take place on 6 islands of Cape Verde, these islands are endowed with natural
                     resources and ecological sensitive ecosystems.

                     The sites selected for the installation of solar panels have been defined by Decree Law (Decree Law no. 1/2011 -
                     Renewable Energy Development Zones (Zonas de Desenvolimento de Energia Renovável, or ZDERs) for their location
                     denied of all sensitive ecosystems or particular risks. Nevertheless the project team will ensure that the project
                     intervention areas will not affect sensitive ecosystems.

                     For the most ecologically sensitive part of Cape Verde, the Fogo National Park, which hosts endemic species on the
                     island of Fogo, the project team will ensure that the project interventions areas are located outside the project area,
                     through Environmental and Social Impact Assessments. A determination will be made by project appraisal, based on
                     the identified project areas.

                     Biodiversity studies in the vicinity of the sites will be prepared before appraisal, as part of the Environmental and
                     Social Impact Assessments expected for the project. The ESMPs will provide mitigation measures to ensure that
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                     project activities, if any, does not cause any harm or alter habitat. The ESIAs will present alternatives to avoid harm to
                     ecologically sensitive areas, whether such areas exist in the vicinity of the areas selected for the project.

                     ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities
                     This standard is not relevant as there are no Indigenous Peoples/Sub-Saharan African Historically Underserved
                     Traditional Local Communities in the project area.

                     ESS8 Cultural Heritage
                     This standard is potentially relevant.
                     Though there is a priori no cultural site in the project areas and the proposed operation will have limited
                     infrastructure works, excavations, movement of earth, quarrying and impounding and associated works will be
                     undertaken. These types of activities may lead to the discovery of known and unknown physical and cultural
                     resources. The Borrower will avoid impacts on both tangible and intangible cultural heritage and where such
                     avoidance is not possible, will identify and implement measures to address these impacts in accordance with the
                     mitigation hierarchy. The treatment of Cultural Heritage, including archaeological relics, fossils, human graves,
                     shrines that may be encountered will follow Chance Finds Procedures that will be developed in the Environmental
                     and Social Management Plan. These procedures will also be included as a requirement in the civil works bidding
                     documents.

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                              Renewable Energy Development Project (P170236)

                     ESS9 Financial Intermediaries
                     No Financial Intermediaries are financed under the project.

                     C. Legal Operational Policies that Apply

                     OP 7.50 Projects on International Waterways                                                                         No

                     OP 7.60 Projects in Disputed Areas                                                                                  No

                     III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE

                     A. Is a common approach being considered?                                                                           No
                     Financing Partners
                     None

                     B. Proposed Measures, Actions and Timing (Borrower’s commitments)
                     Actions to be completed prior to Bank Board Approval:
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                     Actions to be completed prior to Project Appraisal:

                     Prior to appraisal, the Borrower will prepare, for the sites of solar panels, Environment and Social Impact Assessments
                     (ESIAs) and Resettlement Action plan one per site and per island if necessary and draft Environmental and Social
                     Management Plans (ESMPs)acceptable to the Bank.
                     Prior to appraisal, the Borrower will prepare, for the transmission lines, an Environment and Social Management
                     Framework (ESMF) and a Resettlement Policy Framework (RPF) acceptable to the Bank. ESIAs/ESMPs, RAPs would be
                     completed at a later stage once the specific sites are known. The ESIA will be consulted on with stakeholders prior to
                     finalization, reviewed and approved by the Bank, and publicly disclosed.
                     Labor Management Procedures
                     Preparation and disclosure of Stakeholder Engagement Plan (SEP)
                     Preparation of the ESCP
                     Hiring of key environmental and social specialists with adequate qualifications to implement E&S requirements.
                     Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP):
                     Preparation and Implementation of ESMPs as and when required per ESMF and schedule for monitoring
                     implementation of ESMPs.
                     Preparation and implementation of RAPs as and when required per RPF
                     Labor Management Procedures (LMP) & GBV Action Plan
                     Development and implementation of a proportional Health, Safety and Environmental (HSE) plan in line with World
                     Bank Group Environment, Health and Safety (EHS) Guidelines (for construction activities);
                     Details about the elements and timing of activities for delivery and implementation of the SEP

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                     Implementation of the Stakeholder Engagement Plan (SEP)
                     Establishment and implementation of GRM

                     C. Timing
                     Tentative target date for preparing the Appraisal Stage ESRS                                        30-Nov-2020

                     IV. CONTACT POINTS

                     World Bank
                     Contact:            Thierno Bah                          Title:          Senior Energy Specialist

                     Telephone No:       5331+3411                            Email:          tbah@worldbank.org

                     Contact:            Megan Meyer                          Title:          Senior Energy Specialist

                     Telephone No:       +1-202-458-8178                      Email:          mmeyer1@worldbank.org

                     Borrower/Client/Recipient
                     Borrower:              Republic of Cabo Verde, Ministry of Finance

                     Implementing Agency(ies)
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                     Implementing Agency: Special Project Management Unit

                     V. FOR MORE INFORMATION CONTACT
                     The World Bank
                     1818 H Street, NW
                     Washington, D.C. 20433
                     Telephone: (202) 473-1000
                     Web: http://www.worldbank.org/projects

                     VI. APPROVAL

                     Task Team Leader(s):                Megan Meyer, Thierno Bah

                     Practice Manager (ENR/Social)       Maria Sarraf Recommended on 20-Aug-2020 at 08:49:29 EDT

                     Safeguards Advisor ESSA             Nathalie S. Munzberg (SAESSA) Cleared on 26-Aug-2020 at 08:44:49 EDT

                    Aug 26, 2020                                                                                                Page 12 of 12
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