TABLE 3

Environmental Guidelines for Category B Projects
Required Guidelines for all projects that are classified as "Category B"

1) Existing Projects Undergoing No Material Change in Output or Function

For existing physical projects undergoing no material change in output or function, applicants are required to furnish information relating to the project's environmental impacts, including information as to the project's level of compliance with host country environmental guidelines.  For such existing projects, Ex-Im Bank's review will focus on the environmental risks arising from the existing project, taking into account the project's industrial sector, location and other available information relating to environmental impacts.  Existing projects are expected to comply with host country environmental standards and guidelines.

2) New Projects and Projects Undergoing Material Change in Output or Function

Consistent with the OECD Common Approaches, all new projects or projects  undergoing material change in output or function ("expansion projects") that are subject to environmental review will be benchmarked against host country standards and  relevant aspects of the World Bank Group environmental guidelines.

The scope of environmental review for new and expansion projects classified as Category B may vary from project to project. Because the potential impacts of such Category B projects are less adverse (and generally narrower in scope) than Category A projects, Ex-Im Bank does not require the submission of an Environmental Impact Assessment (EIA) for Category B projects. For Category B projects, applicants are required to furnish environmental information sufficient for Ex-Im Bank to identify the extent of the adverse environmental impacts and to enable it to review the adequacy of measures to reduce, prevent or mitigate these impacts. For Category B projects, this type of information generally is focused on, but not necessarily limited to, the type and level of emissions, effluents and waste products produced by the project, the degree of the project's water usage, its noise levels and other information related to the expected environmental performance of the project. Such environmental information about the project should be readily available from the buyer and/or major suppliers.

The environmental effects of all new and expansion projects categorized as B will be evaluated against host country guidelines, and against the requirements and recommendations contained in the Environmental Health and Safety Guidelines (EHS) of the IFC that are relevant to the particular industrial sector of the project .  In addition, for those Category B projects for which certain more complex environmental effects are  identified, those project impacts may be evaluated against applicable elements of the World Bank Safeguard Policies (Operational Policies) (for public sector projects), or against applicable elements of the IFC Performance Standards (for private sector projects).  

In the case of Category B expansion projects, Ex-Im Bank's environmental review will focus on the environmental effects associated with the actual expansion/upgrade portion, including its adherence to host-county and relevant EHS Guidelines.  The existing portion of the project is expected to meet host country environmental standards and guidelines. If the existing facility is determined to have continuing serious adverse environmental effects, the expansion project is expected to include adoption of appropriate mitigation measures for the existing facility.

Ex-Im Bank will inform applicants if they are required to provide environmental information related to associated operations of a Category B project.

IFC Environmental Health and Safety (EHS) Guidelines

The EHS Guidelines are intended to supplement the IFC Performance Standards and the World Bank Safeguard Policies (Operational Policies).  These guidelines provide technical references with general and industry-specific examples of Good International Industry Practices and 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 and expansion facilities at reasonable costs using existing technology.  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.

The following is a list of the various EHS Guidelines:

II: Industry Sector Guidelines