Environment | Environment Procedures and Guidelines | Annex A: International Guidelines

Table 2

Environmental Guidelines for Public Sector Category A Projects
(Government and Parastatal Buyers)

Note:  Application of the following Guidelines is Required for Public Sector, Category A projects (those having a government or parastatal buyer).   They also are optional for private sector Category A projects structured as corporate risk, although it is recommended that applicants/buyers involved in such projects instead comply with the Guidelines listed in Table 1.

Consistent with the OECD Common Approaches, public sector Category A projects (projects having government or parastatal buyers) will be evaluated using host country standards and the relevant aspects of all ten Operational Safeguard Policies (Operational Policies) of the World Bank and the Environmental Health and Safety Guidelines (EHS Guidelines) of the International Finance Corporation.

If Ex-Im Bank identifies an operational link or facility associated with the project and determines that the identified operations should be included within the scope of the environmental evaluation, it will inform the project as to the identity of the associated operations, the nature of the environmental information about the operations that it requires and the guidelines that will be used in evaluating the associated operations.

The applicant shall prepare and submit to Ex-Im Bank an Environmental Impact Assessment (EIA) of the project (and associated operations, if required) as described in Annex E as well as other environmental information sufficient to show compliance with the applicable Operational Policies and EHS Guidelines described in this Table.  This information will enable Ex-Im Bank to evaluate the project’s level of compliance with host country environmental guidelines as well as the applicable World Bank Operational Policies and EHS Guidelines.  Information about the Operational Policies and the EHS Guidelines is presented below:

The World Bank Operational Policies

The World Bank has established ten safeguard policies that address the various elements of the environmental evaluation process for projects. These policies are referred to as Operational Policies (OPs) and are formulated to apply mainly to projects that are government or state owned.   The OPs provide foreign buyers and project participants with the information necessary to structure, design, construct and operationally manage projects in an environmentally and socially acceptable manner, while describing measures to avoid or mitigate adverse environmental and social impacts resulting from the projects.

Following is a list of the ten World Bank Operational Policies:

OP 4.01 – Environmental Assessment
OP 4.04 – Natural Habitats
OP 4.09 – Pest Management
OP 4.10 – Indigenous Peoples
OP 4.11 – Physical Cultural Resources
OP 4.12 – Involuntary Resettlement
OP 4.36 – Forests
OP 4.37 – Safety of Dams
OP 7.50 – Projects on International Waterways
OP 7.60 – Projects in Disputed Areas

Copies of the full text of these Operational Policies are available from Ex-Im Bank, the World Bank, or they can be downloaded at: http://go.worldbank.org/WTA1ODE7T0. 

In order to assist users in understanding the scope and content of the World Bank Operational Policies, Ex-Im Bank’s Engineering & Environment Division has prepared a summary of the requirements associated with each Operational Policy.  In the case of ambiguity between the following summaries and the official language of the respective Operational Policy as set forth by the World Bank, the language of the World Bank will prevail.   Ex-Im Bank’s Engineering & Environment Division will decide on a case-by-case basis the appropriate application of the Operational Policies to a particular project in consultation with the transaction parties in a manner consistent with Ex-Im Bank’s Charter.

OP 4.01 – Environmental Assessment

Annex B of OP 4.01 sets forth the following requirements for an Environmental Assessment (EA), Environmental Impact Assessment (EIA) or Environmental and Social Impact Assessment (ESIA).   The content of the Assessment should focus on the significant environmental (and related social) issues of the project, and its scope and level of detail should be commensurate with the project’s potential impacts.

The Assessment should include the following:

1. An Executive Summary that concisely discusses significant findings and recommended actions.
2. A discussion of the policy, legal and administrative framework within which the EIA is carried out, with explanations of environmental requirements of other lenders and the identification of relevant international environmental agreements to which the country is a party.
3. A concise description of the project, its geographic location (with maps) and area of influence as well as its ecological, social and temporal context and descriptions of related facilities (access roads, water supply, housing) associated with the project.  The need for any resettlement plan or indigenous peoples’ development plan should also be included.
4. Baseline data that assesses the dimension of the study area and describes relevant physical, biological and socioeconomic conditions.  Data sourcing should be referenced.
5. Assessment of the project’s potential positive and negative environmental impacts, as well as identified measures to mitigate negative impacts and opportunities for environmental enhancements.
6. An analysis of alternatives that systematically compares feasible alternatives to the project site, its technology, design and operation, including the “no-project” alternative, in terms of the environmental impacts and feasibility of impact mitigation, the costs and basis for selecting the particular project design, justification for emission and effluent levels and recommended measures for pollution abatement.
7. An Environmental Management Plan (EMP) or Environmental and Social Management Plan (ESMP) that covers mitigation measures and project monitoring.  The EMP must be finalized before project construction commences.  (see below)
8. The EIA should include appendices containing 1) information on the authors of the EIA, 2) references of written materials used in the study preparation, 3) records of all consultation meetings, including those for obtaining the informed views of affected people and local nongovernmental organizations (NGOs), survey records, etc., 4) tables presenting relevant data referred to or summarized in the EIA text, and 5) a listing of associated reports (e.g. resettlement plan, indigenous peoples development plan, etc.) 

The Environmental Management Plan (EMP) should include the following:

1. The set of feasible and cost-effective mitigation measures to reduce potentially significant adverse environmental impacts to acceptable levels and compensatory measures if mitigation measures are not feasible, cost effective or sufficient.
2. Linkage to other required mitigation plans (involuntary resettlement plan, etc)
3. A monitoring plan identifying objectives and specifics that provides information about key project environmental aspects to enable the buyer and lenders to evaluate the success of mitigation as part of project supervision, while allowing for corrective action to be taken as needed.  The monitoring framework should provide specific details of monitoring measures, the parameters to be measured, methods used, sampling locations, frequency of measurements, detection limits, definition of thresholds that will signal the need for corrective actions and reporting procedures to ensure early detection of conditions that require mitigation while furnishing information on the progress and results of mitigation. 
4. Information on capacity development and training, identifying the entity responsible for carrying out mitigation measures and monitoring, and any information to strengthen environmental management capability in the agencies responsible for implementation such as technical assistance programs.
5. Cost and scheduling estimates for mitigation, monitoring and capacity development.
6. Integration of the EMP into the overall project planning, design, budget and implementation so that the EMP will receive adequate funding and supervision.

OP 4.04 – Natural Habitats

1. Projects should be designed to integrate into national and regional development the conservation of natural habitats and the maintenance of ecological functions, while promoting the rehabilitation of degraded natural habitats.
2. Projects that involve the significant conversion or degradation of critical natural habitats will not be supported.
3. Projects that involve the significant conversion or degradation of natural habitats will not be supported unless there are no feasible alternatives for the project and its siting, and comprehensive analysis demonstrates that overall benefits from the project substantially outweigh the environmental costs.  When the EIA indicates that a project would significantly convert or degrade natural habitats, it must include acceptable mitigation measures (minimize habitat loss, post-development restoration, offsets, etc.)
4. When the potential for adverse impacts on a natural habitat are identified, the borrower’s ability to implement the appropriate conservation and mitigation measures will be evaluated, and if necessary, institutional capacity building measures at the national and local level may be required.
5.  For projects involving natural habitat components, adequate expertise should be engaged for project preparation and supervision to ensure adequate design and implementation of mitigation measures.
6. For projects impacting natural habitat, borrowers should take into account the views, roles and rights of groups, including NGOs and local communities affected by the project, and involve them in the planning, design, implementation and monitoring of the project.  Involvement may include managing protected areas, identifying certain conservation measures, monitoring and evaluating specific projects, etc.

  OP 4.09 – Pest Management

1. Strategies that promote the use of biological or environmental control methods and reduce reliance on synthetic chemical pesticides are supported.
2. In projects that will involve pest management, the capacity of the country’s regulatory framework and institutions to promote and support the safe, effective and environmentally sound application of pest management will be assessed.
3. Pesticide procurement is contingent on an assessment of the nature and degree of associated risks, taking into account the proposed use and intended users. The following criteria apply: 1) they must have negligible adverse human health effects; 2) they must be shown to be effective against the target species; 3) they must have minimal effect on non-target species and the natural environment, and 4) Their use must take into account the need to prevent the development of resistance in pests.
4. Pesticides must be manufactured, packaged, labeled, handled, stored, disposed of, and applied according to acceptable standards.    For formulated products that fall into WHO classes IA or IB, or formulations of products in Class II, the host country must have restriction on their distribution and use, and must not be used by, or be accessible to, lay personnel, farmers or others without training, equipment and facilities to handle, store and apply the products properly.

  OP 4.10 – Indigenous Peoples

1. If indigenous peoples (indigenous ethnic minorities, aboriginals, hill tribes, minority nationalities, scheduled tribes, tribal groups) are present in, or have collective attachment to, the project area,  a Social Assessment must be undertaken [acceptable to Ex-Im Bank] to evaluate the project’s potential positive and adverse effects on the Indigenous Peoples, and to examine alternatives where adverse effects may be significant.  The breadth, depth and type of analysis in the social assessment should be proportional to the nature and scale of the project’s potential effects on the Indigenous Peoples.
2. Where the project affects Indigenous Peoples, the borrower shall engage in free, prior and informed consultation with them.  This includes: 1- establishment of an inclusive framework that provides opportunities for consultation at each stage of project preparation and implementation among the buyer, affected Indigenous Peoples’ communities and local Civil Society Organizations identified by the peoples’ communities;   2- use of consultation methods appropriate to the social and cultural values of the affected Indigenous Peoples’ communities and their local conditions, giving special attention to the concerns of the women, youth and children and their access to development opportunities and benefits; and 3 – availability to the Indigenous Peoples’ communities of all relevant information about the project (including an assessment of potential adverse effects of the project on the affected peoples’ communities) in a culturally appropriate manner.
3. If, on the basis of the Social Assessment and the results of the free, prior and informed consultation, the borrower ascertains that broad support for the project exists among the affected communities, the borrower should prepare a detailed report for Ex-Im Bank review that states the findings of the Social Assessment, describes the consultation process with the affected communities, notes additional measures that may be required to address adverse effects on indigenous peoples, states recommendations for free, prior and informed consent with, and participation by, the Indigenous Peoples’ communities through the project’s implementation and operations phase, and describes any formal agreements reached with Indigenous Peoples’ communities and/or organizations of the Indigenous Peoples.  Financial support for the project is contingent on Ex-Im Bank’s finding that such support indeed exists for the project.
4. The borrower shall prepare an Indigenous Peoples Plan (IPP).  The IPP shall be prepared on the basis of the Social Assessment and in consultation with the affected Indigenous Peoples’ communities, and shall set out the measures through which the borrower will ensure that 1) Indigenous Peoples affected by the project receive culturally appropriate social and economic benefits; and 2) when potential adverse effects on Indigenous Peoples are identified, those effects are avoided, minimized, mitigated or are the subject of compensation.   Annex B to the World Bank’s Operational Policy 4.10 contains further information on the preparation of an IPP.  
5. The borrower shall make the Social Assessment Report and a draft of the IPP available to the affected communities in an appropriate form, manner and language for review.  Once accepted by Ex-Im Bank, it will make the copies of the final Report and Plan available to the public, with the Borrower making these documents available in the same manner as the earlier draft to the affected Indigenous Peoples’ communities.
6. If the project affects the ties of the Indigenous Peoples to land, forests, water, wildlife and other natural resources, particular attention shall be paid to 1) the customary rights of the Indigenous Peoples pertaining to lands or territories that they traditionally owned or customarily used or occupied and where access to natural resources is vital to the sustainability of their cultures and livelihoods, 2) the need to protect such lands and resources against illegal intrusion or encroachment, 3) the cultural and spiritual values that the people attribute to such lands and resources, and 4) their natural resource management practices and the long term sustainability of such practices.
7. If the project involves activities that rely on establishment of legally recognized rights to (or the acquisition of) lands and territories that Indigenous Peoples have traditionally owned or customarily used or occupied, the IPP shall set forth an action plan to be carried out before project implementation, or concurrently with the project itself for the legal recognition of such ownership, occupation or usage.  The recognition may establish full legal recognition of existing customary land tenure systems of Indigenous Peoples or else convert customary usage rights to communal and/or individual ownership rights.  If domestic law precludes such recognition or conversion of rights, the IPP should include measures for legal recognition of perpetual or long-term renewable custodial or use rights.
8. If the project involves the commercial development of natural resources (minerals, hydrocarbons, forests, water or hunting/fishing grounds) on lands or territories owned, customarily used or occupied by Indigenous Peoples, the borrower shall ensure that as part of the free, prior and informed consultation process the affected communities are informed of their rights to such resources under statutory and customary law, of the scope and nature of the proposed development and of the potential effects of such development on their livelihoods, environments and use of these resources.  The Indigenous Peoples Plan should include arrangements to enable the Indigenous Peoples to share equitably in the benefits of the development and at a minimum the Plan arrangements must ensure that the Indigenous Peoples receive, in a culturally appropriate manner, benefits, compensation and rights to due process at least equivalent to that to which any landowner with full legal title to the land would be entitled in the case of commercial development on their land.
9. The borrower shall avoid relocation of Indigenous Peoples by exploring alternative project designs.  In exceptional cases when avoidance of relocation is not feasible, it must only be carried out with broad support from the affected peoples’ communities, following a resettlement plan prepared and implemented in accordance with Operational Policy 4.12 of the World Bank that is compatible with the Indigenous Peoples’ cultural preferences and includes a land-based resettlement strategy.
10. Involuntary restriction on Indigenous Peoples’ access to legally designated parks and protected areas, in particular access to their sacred sites, should be avoided. Where such avoidance is not feasible, the borrower shall prepare, with free, prior and informed consultation of the affected peoples’ communities, a process framework in accordance with the provisions of Operational Policy 4.12 that provides guidelines for preparation of a Management Plan of individual parks and protected areas and ensures participation in its design, implementation and benefits of the parks by Indigenous Peoples.

OP 4.11 –Physical Cultural Resources

1. Physical cultural resources are defined as movable or immovable objects, sites, structures, groups of structures and natural features and landscapes that have archaeological, paleontological, historical, architectural, religious, aesthetic or other cultural significance.  They may be located in urban or rural settings, and may be above or below ground, or under water.  Their cultural interest may be at the local, provincial, national or international level.
2. Physical cultural resources should be included in the baseline data collection phase of the EIA process wherein those likely to be affected by the project are identified and the degree of impact assessed.
3. When the project is likely to have adverse impacts on physical cultural resources, the borrower shall identify appropriate measures to avoid or mitigate these impacts as part of the EIA process. These measures may range from full site protection to selective mitigation, including salvage and documentation, in cases where a portion or all of the physical cultural resources may be lost.
4. The borrower shall develop a Physical Cultural Resources Management Plan (or include such a plan within its overall Environmental Management Plan) that includes measures for avoiding or mitigating any adverse impacts on physical cultural resources, provisions for managing chance finds, any necessary measures for strengthening institutional capacity and a monitoring system to track the progress of these activities.  The Plan should be consistent with the country’s overall policy framework and national legislation, taking into account institutional capabilities with regard to physical cultural resources.  The Plan and its recommendations will be reviewed by Ex-Im Bank, in consultation with the borrower, to determine whether it provides an adequate basis for proceeding with the processing of Bank financing.
5. The public consultation process of the EIA for the physical cultural resources component shall include relevant project-affected groups, concerned government authorities and relevant NGOs in documenting the presence and significance of physical cultural resources, assessing potential impacts and exploring avoidance and mitigation options.
6. The findings of the physical cultural resources component shall be disclosed as part of the EIA.  Exceptions would be considered when the disclosure would compromise or jeopardize the safety or integrity of the physical cultural resources or endanger the source of information about the resources, in which cases sensitive information relating to particular aspects of the resources may be omitted from the EIA.

OP 4.12 – Involuntary Resettlement

1. Upon identification of the need for involuntary resettlement in a project, the borrower shall carry out a census to identify the persons affected by the project with baseline data to determine who will be eligible for assistance and to discourage inflow of people ineligible for assistance.  The borrower shall develop a procedure satisfactory to Ex-Im Bank that includes provisions for meaningful consultation with affected persons and communities, local authorities and, as appropriate, NGOs, for establishing the criteria by which displaced persons will be deemed eligible for resettlement, compensation or other resettlement assistance.
2. For projects that cause the involuntary taking of land that results in relocation or loss of shelters, loss of assets or access to assets, loss of income sources or means of livelihood (whether or not the affected persons must move to another location) or the involuntary restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of the displaced persons, the borrower shall prepare a “Resettlement Plan” to address the impacts caused by these actions.
3. Where impacts on the displaced population are minor, or fewer than 200 people are displaced, the borrower shall prepare an abbreviated resettlement plan, acceptable to Ex-Im Bank.
4. Elements required within the Resettlement Plan and an Abbreviated Resettlement Plan are set forth and described in the language of Annex A of Operational Policy 4.12 of the World Bank.   
5. The Resettlement Plan (RP) shall include measures to ensure that displaced persons are 1) informed about their options and rights pertaining to resettlement, 2) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives, and 3) provided prompt and effective compensation at full replacement cost for losses or assets attributable directly to the project.
6. If the impacts include physical relocation, the RP shall include measures to ensure that displaced persons are 1) provided assistance (moving allowances) during relocation and provided with residential housing or housing sites, or as required, agricultural sites for which a combination of productive potential, location advantages and other factors is at least equivalent to the advantages of the old site.
7. Where necessary, the RP should also include measures to ensure that displaced persons are 1) offered support after displacement for a transition period based on a reasonable estimate of the time likely needed to restore their livelihood and living standards, and provided with development assistance in addition to compensation measures such as land preparation, credit facilities, training or job opportunities.
8. In projects involving involuntary restriction of access to legally designated parks and protected areas, the nature of restrictions and type of measures needed to mitigate adverse impacts shall be determined with participation of the displaced persons during the design and implementation for the project, in accordance with a process framework describing the participatory process by which 1) specific components of the project will be prepared and implemented, 2) the criteria for eligibility of displaced persons will be determined, 3) measures to assist the displaced persons in the efforts to improve their livelihoods or at least restore them while maintaining the sustainability of the park or protected areas will be identified, and 4) potential conflicts involving displaced persons will be resolved.
9. Particular attention shall be paid to the needs of vulnerable groups among those displaced, especially those below the poverty line, the landless, the elderly, women and children, indigenous peoples, ethnic minorities or others who may not be protected through national land compensation legislation.
10. In the case of indigenous peoples with traditional land-based modes of production, the borrower shall explore all viable alternative project designs to avoid physical displacement.  When avoidance is not feasible, preference shall be given to land-based resettlement strategies for these groups that are compatible with their cultural preferences and prepared in consultation with them.
11. The implementation of the resettlement activities must be linked to the implementation of the investment component of the project to ensure that necessary measures are in place before any displacement or access restriction occurs.
12. Preference should be given to land-based resettlement for displaced persons whose livelihoods are land-based, to include resettlement on public land or on private land acquired or purchased for resettlement. The productive potential, location advantages and other factors should be at least equivalent to that of the land taken.  In cases where land is not the option of the displaced persons, or the provision of land would adversely affect a park or protected area, or sufficient land is demonstrated to the satisfaction of Ex-Im Bank as being unavailable, options built around opportunities for employment or self-employment should be provided in addition to compensation for the land and other assets lost. 
13. Payment of cash compensation at levels sufficient to replace lost land and other assets at full replacement cost for lost assets may be appropriate where 1) a small fraction of the land is taken from persons having land-based livelihoods, and that fraction does not affect the viability of the residual land, 2) active markets for, and sufficient supply of land, housing and labor exist and are available to the displaced persons, and 3) livelihoods are not land-based.
14. Displaced persons, their communities, and any host communities receiving them, shall be provided timely and relevant information, consulted on options and offered opportunities to participate in planning, implementing and monitoring resettlement.  Appropriate and accessible grievance mechanisms shall be established for these groups. 
15. In new resettlement sites or host communities, infrastructure and public services shall be provided as needed to improve, restore or maintain accessibility and levels of service.  Alternative or similar resources shall be provided to compensate for loss of access to resources such as fishing areas, grazing areas, fuel or fodder.
16. To the extent possible, the existing social and cultural institutions of resettlers and any host communities should be preserved and resettlers’ preferences with respect to relocating in preexisting communities and groups should be honored.
17. Displaced persons who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country, and those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets that are recognized under the laws of the country (or become recognized through a process identified in the RP) shall be provided assistance or compensation in accordance with paragraphs e, f, and g above.
18. Displaced persons who have no recognizable legal right or claim to the land they are occupying, provided they occupy the project area prior to a “cut-off” date established by the borrower and acceptable to Ex-Im Bank, should be provided resettlement assistance in lieu of compensation for the land they occupy and other assistance, as necessary, to improve their livelihood and standard of living, or at least to restore them to pre-displacement levels.
19. Persons who encroach on the project area after the cut-off date are not entitled to compensation or other resettlement assistance. 
20. The borrower is responsible for preparing, implementing and monitoring the RP and reporting on the progress and subsequent status of the resettlement activities.

OP 4.36 – Forests

1. Projects that have or may have impacts on the health and quality of forests, that affect the rights and welfare of people and their level of dependence upon or interaction with forests, and projects that aim to bring about changes in the management, protection or utilization of natural forests or plantations, whether they are publicly, privately, or communally owned are subject to the provisions of this Operational Policy.  (Definitions of forests, natural forests, critical forest areas, etc. are provided in OP 4.36 of the World Bank.)
2.  Ex-Im Bank may not support projects that it determines would involve significant conversion or degradation of critical forest areas or related critical natural habitats. In the case of natural forests (as opposed to critical forest areas) if there are no feasible alternatives to the project and its siting, and a comprehensive analysis demonstrates that overall benefits from the project substantially outweigh the environmental costs, Ex-Im Bank may finance the project provided that it incorporates appropriate mitigation measures.  Ex-Im Bank will not provide financial support for forestry projects that contravene applicable international environmental agreements.
3. Ex-Im Bank may provide financial support for commercial harvesting operations though only when it determines, on the basis of the applicable environmental assessment or other relevant information, that the areas affected by the harvesting are not critical forests or related critical natural habitats.
4. To be eligible for Ex-Im Bank financing, industrial-scale commercial harvesting operations must also 1) be certified under an independent forest certification system acceptable to Ex-Im Bank as meeting standards of responsible forest management and use, or 2) where a pre-assessment under such an independent forest certification system determines that the operation does not yet meet such requirements, it must adhere to a time-bound phased action plan acceptable to Ex-Im Bank for achieving certification to such standards.
5. The forest certification system must require 1) compliance with relevant laws, 2) recognition of and respect for any legally documented or customary land tenure and use rights as well as the rights of indigenous peoples and workers, 3)  measures to maintain or enhance sound and effective community relations, 4) conservation of biological diversity and ecological functions, 5) measures to maintain or enhance environmentally sound multiple benefits accruing from the forest, 6) prevention or minimization of the adverse environmental impacts from forest use, 7) effective forest management planning, 8) active monitoring and assessment of relevant forest management areas, and 9) the maintenance of critical forest areas and other critical natural habitats affected by the operation.
6. The forest certification system must be independent, cost effective and based on objective and measurable performance standards defined at the national level and compatible with internationally accepted principles and criteria of sustainable forest management.  It must require independent, third-party assessment of forest management performance, and its standards must be developed with meaningful participation of local people and communities, indigenous peoples, NGOs representing consumer, producer and conservation interests, and other members of civil society, including the private sector.  Decision-making procedures of the certification system shall be fair, transparent, independent and designed to avoid conflicts of interest.
7. As appropriate, the design of projects that use forest resources or provide environmental services should include an evaluation of the prospects for the development of new markets and marketing arrangements for non-timber forest products and related forest goods and services, taking into account the full range of goods and environmental services from well-managed forests.

OP 4.37 – Safety of Dams

1. For the life of any dam, the owner is responsible for ensuring that appropriate measures are taken and sufficient resources provided for the safety of the dam, irrespective of its funding sources or construction status.
2. All new dams supported by Ex-Im Bank shall be designed and supervised during construction by experienced and competent professionals, and the borrower shall adopt and implement certain dam safety measures for the design, bid tendering, construction, operation and maintenance of the dam and associated works.
3. For small dams, normally less than 15 meters in height (farm ponds, local silt retention dams and low embankment tanks) generic dam safety measures designed by qualified engineers generally suffice.
4. For large dams (generally 15 meters or more in height, or less than 15 meters depending on design such as large flood-handling requirements, high seismicity zones, etc.)  Ex-Im Bank shall require 1) reviews by an independent Panel of Experts of the investigation, design, construction and start of operations, 2) preparation and implementation of detailed construction supervision, quality assurance, instrumentation operations & maintenance and emergency preparedness plans, 3) prequalification of bidders during the procurement and bid tendering, and 4) periodic safety inspections following completion.
5. The Panel shall consist of three or more experts appointed by the borrower and acceptable to Ex-Im Bank, with expertise in the various technical fields relevant to the safety aspects of the particular dam.  The primary purpose of the Panel is to review and advise the borrower on matters relative to dam safety and other critical aspects such as the appurtenant structures, catchment area, area surrounding the reservoir and downstream areas.  The borrower is encouraged to extend the Panel’s composition and terms of reference beyond safety to cover such areas as technical design, construction procedures, river diversion, power facilities, river navigation channels & locks, and fish ladders.
6. The borrower contracts the services of the Panel and provides it with administrative support.  Beginning as early in project preparation as possible and continuing through the investigation, design, construction, reservoir filling and start-up phases, the borrower shall arrange for periodic Panel meetings and reviews, and it shall inform Ex-Im Bank in advance of such meetings in order to enable it to attend and monitor.   After each meeting, the Panel shall provide the borrower a written report of its conclusions and recommendations, signed by each participating member, and the borrower shall promptly forward a copy of the report to Ex-Im Bank for its review.
7. Requirements for projects that rely on the performance of an existing dam or a dam under construction are set forth in Operational Policy 4.37 of the World Bank.

OP 7.50 Projects on International Waterways 

1. Recognizing the importance of cooperation and goodwill of riparian states for the efficient use and protection of international waterways, great importance is attached to the making of appropriate agreements or arrangements by these states that address the  waterway or a part of the waterway (any river, canal, lake or similar body of water  that form a boundary between, or any river or body of surface water that flows through two or more states or any bay, gulf, strait or channel bounded by two or more states or, if within one state, is recognized as a necessary channel of communication between the open sea and other states, and any river flowing into such waters).
2. The international aspects of a project on an international waterway should be dealt with at the earliest possible opportunity.  The state that proposed to undertake the project (beneficiary state) is required to formally notify the other riparian states of the proposed project and the project details.
3. If a prospective borrower objects to notifying other riparian states of the proposed project, Ex-Im Bank will cease processing the application for financing. 
4. Following notification, if the other riparian states raise objections to the proposed project, then, as appropriate, one or more independent experts, acceptable to Ex-Im Bank should be appointed to examine the issues in accordance with this Operational Policy.  The other riparian states should be formally notified of a decision to proceed with the project despite objections of these riparian states.
5. In the case of ongoing projects involving additions or alterations that require rehabilitation, construction or other changes that will not adversely change the quality or quantity of water flows to the other riparian states, nor adversely affect their possible water use, notification of the other riparian states is not required.

OP 7.60 – Projects in Disputed Areas

1. Any dispute over an area in which a proposed project is located should be dealt with at the earliest possible stage.
2. Ex-Im Bank may support a project in a disputed area if the governments concerned agree that, pending the settlement of the dispute, the project proposed for country A should go forward without prejudice to the claims of country B.

IFC Environmental Health and Safety (EHS) Guidelines

The EHS Guidelines of the IFC are intended to supplement the World Bank Operational Safeguard Policies.  They provide technical references with general and industry-specific examples of Good International Industry Practices on pollution prevention and abatement as referenced in Operational Policy 4.01.  Although OP 4.01 refers to measures described in the Pollution Prevention and Abatement Handbook (PPAH) that was published in 1998, Ex-Im Bank will evaluate projects on the more current measures and guidelines described in the EHS that were recently approved by the IFC.  Copies of the EHS Guidelines are available from Ex-Im Bank or can be downloaded at:
http://www.ifc.org/ifcext/enviro.nsf/Content/EnvironmentalGuidelines

The EHS Guidelines contain environmental performance levels and measures for projects in various industrial sectors that are considered to be achievable in new facilities at reasonable costs using existing technology.   The EIA process may recommend alternative levels or measures, which, if acceptable to Ex-Im Bank, become project requirements.  When host country regulations differ from the levels and measures presented in the EHS Guidelines, projects are expected to achieve whichever is more stringent.  If less stringent levels or measures are proposed in view of project circumstances, a full and detailed justification for any proposed alternatives is required as part of the site-specific environmental assessment, demonstrating that selection of the alternative performance level is protective of human health and the environment.

Ex-Im Bank’s Engineering & Environment Division will decide on a case-by-case basis the appropriate application of the EHS Guidelines to a particular project in consultation with the transaction parties, in a manner consistent with Ex-Im Bank’s charter.

The following is a list of the various EHS Guidelines:

II: Industry Sector Guidelines