OP 4.

01
October 1998
Page 1 of 5




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the subject. Additional copies are available to IFC staff in the Information Resources Center (Room L-124), and to the public through
the World Wide Web at http://www.ifc.org/enviro

International Finance Corporation
Operational Policies
Environmental Assessment

Note: OP 4.01 replaces the policy elements of IFCs Environmental Analysis and Review of International Finance
Corporation Projects (Washington, D.C.: IFC, 1993). IFCs Procedure for Environmental and Social Review went
into effect as of September 1, 1998. Instructions to staff on public consultation and disclosure are contained in
IFCs Policy on Disclosure of Information (Washington, D.C.: IFC, 1997). Additional information related to this
OP is provided in the Environmental Assessment Sourcebook (Washington, D.C.: World Bank, 1991) and
subsequent updates available from the Environment Sector Board and in the Pollution Prevention and Abatement
Handbook. Other IFC policies that relate to the environment include OP 4.04, Natural Habitats; OP 4.09, Pest
Management; OP 4.10, Indigenous Peoples (forthcoming); OP 4.11, Safeguarding Cultural Property in IFC-
Financed Projects (forthcoming); OP 4.12, Involuntary Resettlement (forthcoming); OP 4.36, Forestry; OP 4.37,
Safety of Dams (forthcoming), and OP 7.50, Projects on International Waterways. Questions may be addressed to
the Associate Director, IFCs Environment Division. Additional copies are available to IFC staff in the Information
Resources Center, Room L-124. The policy is available to the public through IFCs World Wide Web site at:
http//www.ifc.org/enviro.


1. IFC
1
requires environmental assessment (EA) of projects proposed for IFC financing to help ensure that
they are environmentally sound and sustainable, and thus to improve decision making.

2. EA is a process whose breadth, depth, and type of analysis depend on the nature, scale, and potential
environmental impact of the proposed project. EA evaluates a project's potential environmental risks and impacts in
its area of influence;
2
examines project alternatives; identifies ways of improving project selection, siting, planning,
design, and implementation by preventing, minimizing, mitigating, or compensating for adverse environmental
impacts and enhancing positive impacts; and includes the process of mitigating and managing adverse
environmental impacts throughout project implementation. IFC favors preventive measures over mitigatory or
compensatory measures, whenever feasible.

3. EA takes into account the natural environment (air, water, and land); human health and safety; and social
aspects (involuntary resettlement, indigenous peoples and cultural property);
3
and transboundary and global
environmental aspects
4
. EA considers natural and social aspects in an integrated way. It also takes into account the
variations in project and country conditions; the findings of country environmental studies; national environmental
action plans; the country's overall policy framework and national legislation; the project sponsors capabilities
related to the environment and social aspects, and obligations of the country, pertaining to project activities, under
relevant international environmental treaties and agreements. IFC does not finance project activities that would
contravene such country obligations, as identified during the EA. EA is initiated as early as possible in project

1
The International Finance Corporation (IFC) is the World Bank Group entity with a mandate to invest in private sector projects in
developing member countries. It lends directly to and makes equity investments in private companies without guarantees from
governments, and attracts other sources of funds for these projects. IFC also provides advisory services and technical assistance to
governments and businesses. This policy also covers projects funded under the Global Environment Facility (GEF).EA refers to the
entire process set out in OP 4.01
2
For definitions, see Annex A. The area of influence for any project is determined with the advice of environmental specialists and set
out in the EA terms of reference.
3
See OP 4.12, Involuntary Resettlement, and OP 4.10, Indigenous Peoples (forthcoming); OD 4.20, Indigenous Peoples; and OP
4.11, Safeguarding Cultural Property in IFC-Financed Projects (forthcoming).
4
Global environmental issues include climate change, ozone-depleting substances, pollution of international waters, and adverse
impacts on biodiversity.
OP 4.01
October 1998
Page 2 of 5




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the World Wide Web at http://www.ifc.org/enviro

International Finance Corporation
Operational Policies
processing and is integrated closely with the economic, financial, institutional, social, and technical analyses of a
proposed project.

4. The project sponsor is responsible for carrying out the EA. For Category A projects
5
the project sponsor
retains independent EA experts not affiliated with the project to carry out the EA.
6
For Category A projects that are
highly risky or contentious or that involve serious and multidimensional environmental concerns, the project sponsor
should normally also engage an advisory panel of independent, internationally recognized environmental specialists
to advise on all aspects of the project relevant to the EA.
7
The role of the advisory panel depends on the degree to
which project preparation has progressed, and on the extent and quality of any EA work completed, at the time IFC
begins to consider the project.

5. IFC advises the project sponsor on IFC's EA requirements. IFC reviews the findings and recommendations
of the EA to determine whether they provide an adequate basis for processing the project for IFC financing. When
the project sponsor has completed or partially completed EA work prior to IFC's involvement in a project, IFC reviews
the EA to ensure its consistency with this policy. IFC may, if appropriate, require additional EA work, including
public consultation and disclosure.

6. The Pollution Prevention and Abatement Handbook describes pollution prevention and abatement
measures and emission levels that are normally acceptable to IFC. However, taking into account country legislation
and local conditions, the EA may recommend alternative emission levels and approaches to pollution prevention and
abatement for the project. The EA report must provide full and detailed justification for the levels and approaches
chosen for the particular project or site.

EA Instruments

7. Depending on the project, a range of instruments can be used to satisfy IFCs EA requirement:
environmental impact assessment (EIA), environmental audit, hazard or risk assessment, and environmental action
plan (EAP).
8
EA applies one or more of these instruments, or elements of them, as appropriate.

Environmental Screening

8. IFC undertakes environmental screening of each proposed operation to determine the appropriate extent and
type of EA. IFC classifies the proposed project into one of four categories, depending on the type, location,
sensitivity, and scale of the project and the nature and magnitude of its potential environmental impacts.

a) Category A: A proposed project is classified as Category A if it is likely to have significant adverse
environmental impacts that are sensitive,
9
diverse, or unprecedented. These impacts may affect an area

5
For screening, see para. 8.
6
EA is closely integrated with the project's economic, financial, institutional, social, and technical analyses to ensure that (a)
environmental considerations are given adequate weight in project selection, siting, and design decisions; and (b) EA does not delay
project processing. However, the project sponsor ensures that when individuals or entities are engaged to carry out EA activities, any
conflict of interest is avoided. For example, when an independent EA is required, it is not carried out by the consultants hired to
prepare the engineering design.
7
The panel (which is different from the dam safety panel required under OP 4.37, Safety of Dams) advises the project sponsor
specifically on the following aspects: (a) the terms of reference for the EA, (b) key issues and methods for preparing the EA, (c)
recommendations and findings of the EA, (d) implementation of the EA's recommendations, and (e) development of environmental
management capacity.
8
These terms are defined in Annex A. Annexes B and C discuss the content of EA reports and EAPs.
OP 4.01
October 1998
Page 3 of 5




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broader than the sites or facilities subject to physical works. EA for a Category A project examines the
project's potential negative and positive environmental impacts, compares them with those of feasible
alternatives (including, the without project situation), and recommends any measures needed to
prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance.
For a Category A project, the project sponsor is responsible for preparing a report, normally an EIA that
includes, as necessary, elements of the other instruments referred to in para 7.

b) Category B: A proposed project is classified as Category B if its potential adverse environmental
impacts on human populations or environmentally important areasincluding wetlands, forests,
grasslands, and other natural habitatsare less adverse than those of Category A projects. These
impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measures can
be designed more readily than for Category A projects. The scope of EA for a Category B project may
vary from project to project, but it is narrower than that of Category A EA. Like Category A EA, it
examines the project's potential negative and positive environmental impacts and recommends any
measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve
environmental performance. The findings and results of Category B EA are described in the
Environmental Review Summary, which is prepared by IFC.
10


c) Category C: A proposed project is classified as Category C if it is likely to have minimal or no adverse
environmental impacts.
Beyond screening, no further EA action is required for a Category C project.

d) Category FI: A proposed project is classified as Category FI if it involves investment of IFC funds
through a financial intermediary, in subprojects that may result in adverse environmental impacts. In
addition, in some capital markets projects, IFC funds are not targeted to specific subprojects (e.g. equity
in a financial institution such as a commercial bank), but the financial institution has operations which
may have adverse environmental impacts (e.g. project finance). In such cases, IFC may also classify the
project as Category FI.

EA for Special Project Types

Financial Intermediary Lending

9. For a financial intermediary (FI) operation targeting specific subprojects, IFC requires that each FI screen
proposed subprojects and ensure that subproject sponsors carry out appropriate EA for each subproject. Before
approving a subproject, the FI verifies (through its own staff, outside experts, or existing environmental institutions)
that the subproject meets the environmental requirements of appropriate national and local authorities and is

9
A potential impact is considered sensitive if it may be irreversible (e.g., lead to loss of a major natural habitat) or raise issues
covered by OP 4.10, Indigenous Peoples (forthcoming); OP 4.04, Natural Habitats; OP 4.11, Safeguarding Cultural Property in IFC-
Financed Projects (forthcoming); or OP 4.12, Involuntary Resettlement.
10
When the screening process determines, or national legislation requires, that any of the environmental issues identified warrant
special attention, the findings and results of the Category B EA may be set out in a separate report. Depending on the type of project
and the nature and magnitude of the impacts, this report may include, for example, a limited environmental impact assessment, an
environmental mitigation or action plan, an environmental audit, or a hazard assessment. For Category B projects that are not in
environmentally sensitive areas and that present well-defined and well-understood issues of narrow scope, IFC may accept alternative
approaches for meeting EA requirements: for example, environmentally sound design criteria, siting criteria, or pollution standards for
small-scale industrial plants or rural works; environmentally sound siting criteria, construction standards, or inspection procedures for
housing projects; or environmentally sound operating procedures for road rehabilitation projects.
OP 4.01
October 1998
Page 4 of 5




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International Finance Corporation
Operational Policies
consistent with this OP and other applicable environmental policies of IFC.
11
When IFC funds are not targeted to
specific subprojects (e.g. equity in a financial institution such as a commercial bank) but the financial institution has
operations which may have adverse environmental impacts, IFC will require the FI to receive training on
environmental management, if necessary. In addition, IFC requires that investments under the relevant operations
comply with host country environmental, health and safety requirements; no further environmental requirements
would normally be applied to these operations.

10. In appraising a proposed FI investment by IFC, IFC reviews the adequacy of the proposed FIs EA
arrangements for subprojects, including the mechanisms and responsibilities for environmental screening and review
of EA results. When necessary, IFC ensures that the project includes components to strengthen such EA
arrangements. For FI operations expected to have Category A subprojects, during appraisal IFC examines the FIs
institutional capacity for its subproject EA work and identifies, as necessary, measures to strengthen capacity. If IFC
is not satisfied that adequate capacity exists for carrying out EA, all Category A subprojects and, as appropriate,
Category B subprojectsincluding EA reportsare subject to prior review and approval by IFC.
12


Institutional Capacity

11. When the project sponsor has inadequate environmental capacity to carry out key EA-related functions
(such as review of EA, environmental monitoring, inspections, or management of mitigation measures) for a proposed
project, IFC requires the project sponsor to strengthen internal staff capacity or retain qualified outside expertise.

Public Consultation

12. For all Category A projects and as appropriate for Category B projects during the EA process, the project
sponsor consults project-affected groups and local nongovernmental organizations (NGOs) about the project's
environmental aspects and takes their views into account. The project sponsor initiates such consultations as early
as possible. For Category A projects, the project sponsor consults these groups at least twice: (a) shortly after
environmental screening and before the terms of reference for the EA are finalized, and (b) once a draft EA report is
prepared. In addition, the project sponsor consults with such groups throughout project implementation, as
necessary to address EA related issues that affect them.
13


13. In those cases where the Category A EA has been completed prior to IFC involvement in a project, IFC
reviews the public consultation and disclosure carried out by the project sponsor during and after EA preparation. If
necessary IFC and the project sponsor then agree on a supplemental public consultation and disclosure program to
address any deficiencies identified by IFC. On completion of the supplemental program the project sponsor prepares
a report detailing the results of the full public consultation and disclosure program. The Category A EA will only be
made available to the World Banks InfoShop once this report is complete.

Disclosure


11
The requirements for FI operations are derived from the EA process, and are consistent with the provisions of para 6 of this OP.
The EA process takes into account the type of finance being considered, the nature and scale of anticipated subprojects, and the
environmental requirements of the jurisdiction in which subprojects will be located.
12
The criteria for prior review of Category B subprojects, which are based on such factors as type or size of the subproject and the EA
capacity of the financial intermediary, are set out in the legal agreements for the project.
13
For projects with major social components, consultations are also required by other IFC policiesfor example OP 4.10, Indigenous
Peoples (forthcoming), and OP 4.12, Involuntary Resettlement.
OP 4.01
October 1998
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the World Wide Web at http://www.ifc.org/enviro

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14. For meaningful consultations between the project sponsor and project-affected groups and local NGOs on
all Category A and as appropriate for Category B projects, the project sponsor provides relevant material in a timely
manner prior to consultation and in a form and language that are understandable and accessible to the groups being
consulted.

15. For a Category A project, the project sponsor provides for the initial consultation a summary of the
proposed projects objectives, description, and potential impacts; for consultation after the draft EA report is
prepared, the project sponsor provides a summary of the EAs conclusions. In addition, for a Category A project, the
project sponsor makes the draft EA report available at a public place accessible to project-affected groups and local
NGOs. For FI operations, the FI ensures that EA reports for Category A subprojects are made available in a public
place accessible to affected groups and local NGOs.

16. The Category B report (Environmental Review Summary) for a project is made available to project affected
groups and local NGOs.

17. Once the project sponsor officially provides a Category A EA report to IFC, IFC distributes the summary (in
English) to the members of IFCs Board of Directors. As required under its policy on disclosure, IFC also makes the
Category A EA and Category B environmental information available through the World Bank InfoShop.
14
If the
project sponsor objects to IFCs releasing this environmental information through the World Bank InfoShop, IFC
staff do not continue work on the project. In rare and compelling circumstances and for Category B projects only, an
exception to the time deadline associated with this public disclosure requirement may be granted in writing by the
Vice President, Investment Operations.

Implementation

18. During project implementation, the project sponsor reports on compliance with (a) measures agreed with IFC
on the basis of the findings and results of the EA, including implementation of any EAP, as set out in the project
documents; (b) the status of mitigatory measures; and (c) the findings of monitoring programs. IFC bases
supervision of the project's environmental aspects on the findings and recommendations of the EA, including
measures set out in the legal agreements, any EAP, and other project documents.


14
For a further discussion of IFCs disclosure procedures, see IFCs Policy on Disclosure of Information. Specific requirements for
disclosure of resettlement plans and indigenous peoples development plans are set out in OP 4.12, Involuntary Resettlement
(forthcoming), and OP 4.10, Indigenous Peoples (forthcoming).
OP 4.01, Annex A
October 1998
Page 1 of 1




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Annex ADefinitions

1. Environmental audit: An instrument to determine the nature and extent of all environmental areas of
concern at an existing facility. The audit identifies and justifies appropriate measures to mitigate the areas of concern,
estimates the cost of the measures, and recommends a schedule for implementing them. For certain projects, the EA
report may consist of an environmental audit alone; in other cases, the audit is part of the EA documentation.

2. Environmental impact assessment (EIA): An instrument to identify and assess the potential environmental
impacts of a proposed project, evaluate alternatives, and design appropriate mitigation, management, and monitoring
measures.

3. Environmental action plan: (EAP) An instrument that details (a) the measures to be taken during the
implementation and operation of a project to eliminate or offset adverse environmental impacts, or to reduce them to
acceptable levels; and (b) the actions needed to implement these measures. The EAP is an integral part of Category A
EAs (irrespective of other instruments used). EAs for Category B projects may also result in an EAP.

4. Hazard assessment: An instrument for identifying, analyzing, and controlling hazards associated with the
presence of dangerous materials and conditions at an installation. IFC requires a hazard assessment for projects
involving certain inflammable, explosive, reactive, and toxic materials when they are present at a site in quantities
above a specified threshold level. For certain projects, the EA report may consist of the hazard assessment alone; in
other cases, the hazard assessment is part of the EA documentation.

5. Project area of influence: The area likely to be affected by the project, including all its ancillary aspects,
such as power transmission corridors, pipelines, canals, tunnels, relocation and access roads, borrow and disposal
areas, and construction camps, as well as unplanned developments induced by the project (e.g., spontaneous
settlement, logging, or shifting agriculture along access roads). The area of influence may include, for example, (i) the
watershed within which the project is located; (ii) any affected estuary and coastal zone; (iii) off-site areas required
for resettlement or compensatory tracts; (iv) the airshed (e.g., where airborne pollution such as smoke or dust may
enter or leave the area of influence); (v) migratory routes of humans, wildlife, or fish, particularly where they relate to
public health, economic activities, or environmental conservation; and (vi) areas used for livelihood activities
(hunting, fishing, grazing, gathering, agriculture, etc.) or religious or ceremonial purposes of a customary nature.

6. Risk assessment: An instrument for estimating the probability of harm occurring from the presence of
dangerous conditions or materials at an installation. Risk represents the likelihood and significance of a potential
hazard being realized; therefore, a hazard assessment often precedes a risk assessment, or the two are conducted as
one exercise. Risk assessment is a flexible method of analysis; a systematic approach to organizing and analyzing
information about potentially hazardous activities or about substances that might pose risks under specified
conditions. IFC routinely requires risk assessment for projects involving handling, storage, or disposal of hazardous
materials and waste; the construction of dams; or major construction works in locations vulnerable to seismic activity
or other potentially damaging natural events. For certain projects, the EA report may consist of the risk assessment
alone; in other cases, the risk assessment is part of the EA documentation.
OP 4.01, Annex B
October 1998
Page 1 of 2




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Annex BContent of an Environmental
Assessment Report for a Category A Project

1. An environmental assessment (EA) report for a Category A project
1
focuses on the significant
environmental issues of a project. The report's scope and level of detail should be commensurate with the project's
potential impacts. The report submitted to IFC is prepared in English, French, or Spanis h, and the executive summary
in English.

2. The EA report should include the following items (not necessarily in the order shown):

a) Executive summary. Concisely discusses significant findings and recommended actions.

b) Policy, legal, and administrative framework. Discusses the policy, legal, and administrative
framework within which the EA is carried out. Explains the environmental requirements of any
cofinanciers. Identifies relevant international environmental agreements to which the country is a
party.

c) Project description. Concisely describes the proposed project and its geographic, ecological,
social, and temporal context, including any off-site investments that may be required (e.g.,
dedicated pipelines, access roads, power plants, water supply, housing, and raw material and
product storage facilities). Indicates the need for any resettlement plan or indigenous peoples
development plan
2
(see also subpara (h)(v) below). Normally includes a map showing the project
site and the project's area of influence.

d) Baseline data. Assesses the dimensions of the study area and describes relevant physical,
biological, and socioeconomic conditions, including any changes anticipated before the project
commences. Also takes into account current and proposed development activities within the
project area but not directly connected to the project. Data should be relevant to decisions about
project location, design, operation, or mitigatory measures. The section indicates the accuracy,
reliability, and sources of the data.

e) Environmental impacts. Predicts and assesses the project's likely positive and negative impacts, in
quantitative terms to the extent possible. Identifies mitigation measures and any residual negative
impacts that cannot be mitigated. Explores opportunities for environmental enhancement. Identifies
and estimates the extent and quality of available data, key data gaps, and uncertainties associated
with predictions, and specifies topics that do not require further attention.

f) Analysis of alternatives.
3
Systematically compares feasible alternatives to the proposed project
site, technology, design, and operationincluding, the without project situationin terms of

1
The EA report for a Category A project is normally an environmental impact assessment, with elements of other instruments
included as appropriate. Any report for a Category A operation uses the components described in this annex. IFCs Environment
Division can provide detailed guidance on the focus and components of the various EA instruments.
2
See OP 4.12, Involuntary Resettlement and OP 4.10, Indigenous Peoples (forthcoming) .
3
EIA is normally best suited to the analysis of alternatives within a given project concept (e.g., a geothermal power plant, or a project
aimed at meeting local energy demand), including detailed site, technology, design, and operational alternatives. Where a project has
OP 4.01, Annex B
October 1998
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their potential environmental impacts; the feasibility of mitigating these impacts; their capital and
recurrent costs; their suitability under local conditions; and their institutional, training, and
monitoring requirements. For each of the alternatives, quantifies the environmental impacts to the
extent possible, and attaches economic values where feasible. States the basis for selecting the
particular project design proposed and justifies recommended emission levels and approaches to
pollution prevention and abatement.

g) Environmental action plan (EAP) . Covers mitigation measures, monitoring, and institutional
strengthening; see outline in OP 4.01, Annex C.

h) Appendixes

i) List of EA report preparersindividuals and organizations.

ii) Referenceswritten materials, both published and unpublished, used in study
preparation.

iii) Record of interagency and consultation meetings, including consultations for obtaining
the informed views of the affected people and local nongovernmental organizations
(NGOs). The record specifies any means other than consultations (e.g., surveys) that were
used to obtain the views of affected groups and local NGOs.

iv) Tables presenting the relevant data referred to or summarized in the main text.

v) List of associated reports (e.g., resettlement plan or indigenous peoples development
plan).

broad environmental implications (e.g. a large reservoir), these should be addressed through a careful and comprehensive analysis of the
projects area of influence and the proper scoping of the EIA.
OP 4.01, Annex C
October 1998
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Annex CEnvironmental Action Plan

1. A project's environmental action plan (EAP) consists of the set of mitigation, management, monitoring, and
institutional measures to be taken during implementation and operation to eliminate adverse environmental and social
impacts, offset them, or reduce them to acceptable levels. The plan also includes the actions needed to implement
these measures.
1
Action plans are essential elements of EA reports for Category A projects; for many Category B
projects, the EA may result in an action plan only. To prepare an action plan, project sponsors and their EA design
team (a) identify the set of responses to potentially adverse impacts; (b) determine requirements for ensuring that
those responses are made effectively and in a timely manner; and (c) describe the means for meeting those
requirements.
2
More specifically, the EAP includes the following components.

Mitigation

2. The EAP identifies feasible and cost-effective measures that may reduce potentially significant adverse
environmental impacts to acceptable levels. The plan includes compensatory measures if mitigation measures are not
feasible, cost-effective, or sufficient. Specifically, the EAP

a) identifies and summarizes all anticipated significant adverse environmental impacts (including
those involving indigenous people or involuntary resettlement);

b) describeswith technical details each mitigation measure, including the type of impact to which
it relates and the conditions under which it is required (e.g., continuously or in the event of
contingencies), together with designs, equipment descriptions, and operating procedures, as
appropriate;

c) estimates any potential environmental impacts of these measures; and

d) provides linkage with any other mitigation plans (e.g., for involuntary resettlement or indigenous
peoples) required for the project.

Monitoring

3. Environmental monitoring during project implementation provides information about key environmental
aspects of the project, particularly the environmental impacts of the project and the effectiveness of mitigation
measures. Such information enables the project sponsor and IFC to evaluate the success of mitigation as part of
project supervision, and allows corrective action to be taken when needed. Therefore, the EAP identifies monitoring
objectives and specifies the type of monitoring, with linkages to the impacts assessed in the EA report and the
mitigation measures described in the EAP. Specifically, the monitoring section of the EAP provides

a) a specific description, and technical details, of monitoring measures, including the parameters to be
measured, methods to be used, sampling locations, frequency of measurements, detection limits
(where appropriate), and definition of thresholds that will signal the need for corrective actions; and

1
The action plan is sometimes known as a management plan.
2
For projects involving rehabilitation, upgrading, expansion, or privatization of existing facilities, remediation of existing
environmental problems may be more important than mitigation and monitoring of expected impacts. For such projects, the action
plan focuses on cost -effective measures to remediate and manage these problems.
OP 4.01, Annex C
October 1998
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b) monitoring and reporting procedures to (i) ensure early detection of conditions that necessitate
particular mitigation measures, and (ii) furnish information on the progress and results of mitigation.

Capacity Development and Training

4. To support timely and effective implementation of environmental project components and mitigation
measures, the EAP draws on the EA's assessment of the existence, role, and capability of environmental units on
site.
3
If necessary, the EAP recommends the establishment or expansion of such units, and the training of staff, to
allow implementation of EA recommendations. Specifically, the EAP provides a specific description of the project
sponsors arrangementswho is responsible for carrying out the mitigatory and monitoring measures (e.g., for
operation, supervision, monit oring of implementation, remedial action, financing, reporting, and staff training). To
strengthen the project sponsors environmental management capability, most EAPs cover one or more of the
following additional topics: (a) technical assistance programs, (b) procurement of equipment and supplies, and (c)
organizational changes.

Implementation Schedule and Cost Estimates

5. For all three aspects (mitigation, monitoring, and capacity development), the EAP provides (a)
an implementation schedule for measures that must be carried out as part of the project, showing phasing and
coordination with overall project implementation plans; and (b) the capital and recurrent cost estimates and sources
of funds for implementing the EMP.

Integration of EAP with Project

6. The project sponsors decision to proceed with a project, and IFCs decision to support it, are predicated in
part on the expectation that the EAP will be executed effectively. Consequently, IFC expects the plan to be specific in
its description of the individual mitigation, management and monitoring measures and its assignment of
responsibilities, and it must be integrated into the project's overall planning, design, budget, and implementation.
Such integration is achieved by establishing the EMP within the project so that the plan will receive funding and
supervision along with the other components.





3
For projects having significant environmental implications, it is particularly important that the project sponsor have an in-house
environmental unit with adequate budget and professional staffing strong in expertise relevant to the project.