MODULE 5: PORT REDEVELOPMENT PROJECT

Module 5: Port Redevelopment Project

ENTER

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Topic: Welcome
Topic: Key Aspects of the Port Redevelopment Project
Topic: Community Health and Safety (ESS4)
Topic: Resource Efficiency and Pollution Prevention and Management (ESS3)
Topic: Labor and Working Conditions (ESS2)
Topic: Additional Issues
Topic: Summary

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Read More
This course aims to provide an in-depth introduction to the elements of the World
Bank’s Environmental and Social Framework for Investment Project Financing.
Before taking this course, you are encouraged to read the Environmental and
Social Framework itself and to use it as a reference document as needed, both
while taking the training and in the future.
This course was developed for World Bank staff and therefore some references
may be specific to World Bank staff.

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Introduction to the Module

Welcome to Module 5, The Port Redevelopment Project. This project scenario
illustrates the key elements and main applications of the Standards on:
 Labor and Working Conditions (ESS2)
 Resource Efficiency and Pollution Prevention and Management (ESS3)
 Community Health and Safety (ESS4)

The applicability of each of these Standards is established during the

environmental and social assessment set out in ESS1, and the World Bank’s own
due diligence process.

As for all Environmental and Social Standards, the following principles apply:
 The level of assessment and impact mitigation design should cover all
relevant issues while being proportionate to the level of risk
 The Mitigation Hierarchy should be used in all circumstances

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 Stakeholders should be engaged throughout the process

The following principles are particularly relevant to ESS2, ESS3 and ESS4:

 Apply national law and/or the Environmental, Health, and Safety Guidelines
or other recognized Good International Industry Practice (GIIP), whichever is
most stringent
 Apply the “Polluter Pays” principle
 Implement technically and financially feasible measures for efficient
consumption of resources, particularly water, energy, and raw materials
 Promote accessibility, safety and climate change considerations in the design
and construction of civil works

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Information on Annex 1 of ESS4 (Dam Safety) is covered in Module 6.

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Mitigation Hierarchy
Adopting a Mitigation Hierarchy approach means:
 Anticipate and avoid risks and impacts to the extent possible
 Where avoidance is not possible, minimize or reduce risks and impacts to
acceptable levels
 Once risks and impacts have been minimized or reduced, mitigate
 Where significant residual impacts remain, compensate for or offset them,
where technically and financially feasible

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Learning Objectives
By the end of this module, you will be able to:
 Explain the objectives and key requirements of ESS2, Labor and Working
Conditions; ESS3, Resource Efficiency and Pollution Prevention and
Management; and ESS4, Community Health and Safety
 Describe how they should be addressed during the preparation and
implementation of an investment project
 Recognize several Helpful Approaches, Mindsets, and Behaviors that are key
for successful implementation of the Environmental and Social Framework

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Meet the Team

In this module, you will observe and reflect upon conversations among members
of a World Bank team that is preparing for a Mission. Team members are:
Kofi: The Task Team Leader from the Transport Global Practice
Aisha: A Senior Environmental Specialist, whom you met earlier in this course
Cheung: A Senior Social Development Specialist

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Early Meeting with Environmental and Social Specialists

Members of the World Bank team for the Port Redevelopment Project meet to
discuss what needs to be done at project identification to prepare for the Project
Concept Note review.

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Good morning.
Thank you for joining the project team for this port redevelopment project that the
World Bank is considering financing.
As you know, we are currently at the identification stage and have a first draft
Project Concept Note that sets out the proposed scope of the project at this stage.

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It is fairly preliminary but there should be enough information to allow us to think

through the main potential environmental and social risks and to propose an initial
risk classification.
What I would like to do this afternoon is to identify the main issues that we will
need to cover during our mission in two weeks’ time.
This is my first project applying the Environmental and Social Framework, and I
understand there’s a lot that is new, so your guidance will be very helpful.

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We appreciate your involving both Cheung and me early in the project, so we can
work efficiently as a team to ensure that the project’s environmental and social
risks are identified and managed effectively.
And the fact that the Borrower has approached the World Bank to discuss the
social and environmental issues at such an early stage also gives us the
opportunity to ensure that these issues are addressed as part of the project
design, rather than as after-thoughts.
This should make managing any risks easier and less expensive and it should
lead to a more sustainable project.

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Excellent.
As we go through the relevant elements of the Environmental and Social
Standards, I think you’ll find that a lot of it is quite familiar. The Environmental and
Social Framework retains many elements of the former safeguard policies without
major changes.
And I can assure you that not everything in the Environmental and Social
Framework is new!

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In many cases, existing requirements have been better articulated, which should
be helpful.
Of course, there are also some aspects that are new, such as the objectives and
requirements relating to resource efficiency and climate change, and to working
conditions for workers hired under the project.

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Map of Port and Project Area

Here are the main elements of the Port and Project Area.

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Let’s start by looking at this map and the aerial photos so we can build a shared
picture.

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As you can see, there is an existing port that has been in operation for over 70
years with an annual cargo tonnage of approximately 12 million tons.
The goods come in by road along the coast from the industrial zone, and by train
from the agriculturally rich Leugap River valley over here.
The redevelopment will require removing or upgrading some existing facilities,
and expanding the port.
The Borrower would like to see a tripling of the annual cargo tonnage, they want
to expand the type of goods that can be handled, and they want improved access
for bigger ships and better road access to accommodate a greater volume of
goods.
Then there will be some new warehouses in this area over here, and they also
plan to upgrade that access road from an unpaved one lane road with passing
bays to a full two lane tarmac road, so we can expect a substantial permanent
increase in the volume and speed of traffic, which raises road safety issues.

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Project Definition
Are all of those elements going to be part of the project?
Yes, as far as we know, the Borrower is planning to ask the Bank to contribute to
financing everything I’ve mentioned, so they will all be part of the project.
There have been some early discussions about possibly requesting another
multilateral or bilateral donor to co-finance the access road.

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What about the warehouses?

The Borrower has been trying to find alternative financing for them, but so far they
haven’t succeeded so I think we’ll be asked to add financing of the warehouses to
the project.
The Ministry of Environment has already approved the environmental impact
assessment. Would that present a problem from the environmental and social risk
perspective?

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No, it shouldn’t present a problem. We would need to review the environmental

and social assessment, in case anything further needs to be done for consistency
with ESS1 objectives.
And the construction of the warehouses will need to be consistent with the
relevant Environmental and Social Standards. We can work with the Borrower on
how best to achieve this.
After all, one objective of the new Environmental and Social Framework is to be
flexible and responsive to the needs of the Borrower and the particular project’s
circumstances.

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Helpful Approaches, Mindsets, and Behaviors

The Environmental and Social Framework is outcomes-oriented, so different
approaches may be considered, as long as it is expected that the results will be
consistent with the Environmental and Social Standards.

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It makes it easier that our requirements for environmental and social assessment
would be proportionate to the relatively low risk of this type of activity.
That is, unless there are specific issues, for example, if they are going to be used
to store hazardous materials.

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Discovery Question
If a project includes existing facilities or activities:
Correct Choice
It must meet all the relevant requirements of the Environmental
and Social Standards before the project is approved by the
World Bank
As part of the Environmental and Social Commitment Plan, the
Borrower is required to indicate which of the Environmental and
Social Standards are relevant
As part of the environmental and social assessment process,
the Borrower must demonstrate that the facilities or activities
are fully consistent with the World Bank Group’s Environmental,
Health, and Social Guidelines
X As part of the Environmental and Social Commitment Plan, the
Borrower is required to adopt and implement measures
satisfactory to the Bank so that the facilities or activities will

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meet the relevant requirements of the Environmental and Social

Standards within a timeframe acceptable to the Bank

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E&S Policy, Paragraph 18

If the project comprises or includes existing facilities or existing activities that do
not meet the requirements of the Environmental and Social Standards at the time
of approval by the Bank, the Bank will require the Borrower, as part of the ESCP,
to adopt and implement measures satisfactory to the Bank so that the material
aspects of such facilities or activities meet the requirements of the Environmental
and Social Standards within a timeframe acceptable to the Bank. In determining
satisfactory measures and an acceptable timeframe, the Bank will take into
account the nature and scope of the project and the technical and financial
feasibility of the proposed measures.

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Inter-connected Environmental and Social Objectives

In fact, is the Borrower considering opening the port to transporting hazardous
materials? This would have some important implications for both environmental
and social risks.
Absolutely. If the port will be handling hazardous chemicals or other hazardous
material, we need to consider the risk of accidents and spills not only within the
port complex itself but also along the access road.
It raises issues of exposure and health and safety concerns for both port workers
and local communities.

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And if there is runoff into the bay it could have serious environmental
consequences, including killing many fish or making them unfit for consumption.
Also, I understand there will be some dredging to enable the port to handle larger
ships, and there is a lot of heavy industry upstream.

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If the environmental and social assessment indicates there are heavy metals or
other toxins in the sediments,
there will be the issue of how the sediments can be contained during dredging
and where it can be disposed of afterwards.
There is also the issue of handling and disposal of any hazardous materials such
as asbestos or lead in the construction debris.

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Community Health and Safety Objectives

It’s clear there are many potential environmental and social risks that the
Borrower will need to manage, both during the construction phase and later
during the operation of the port.
I know there are other issues that we haven’t even touched on yet, such as
resettlement, but we agreed to focus on ESS2, ESS3, and ESS4 today.
Can we start with community health and safety?

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ESS4, Community Health and Safety Objectives:

To anticipate and avoid adverse impacts on the health and safety of project-
affected communities during the project life-cycle from both routine and non-
routine circumstances.
To promote quality and safety, and considerations relating to climate change, in
the design and construction of infrastructure, including dams.
To avoid or minimize community exposure to project-related traffic and road
safety risks, diseases and hazardous materials.
To have in place effective measures to address emergency events.
To ensure that the safeguarding of personnel and property is carried out in a
manner that avoids or minimizes risks to project-affected communities.

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Of course. One thing I noticed right away from the map and aerial photos is that it
looks like the main port access road goes right through these coastal communities.
The aerial photos show a lot of homes and other buildings along the road, and
people have to cross the road to get to their fishing boats which are moored on
the other side.

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I think we should advise the Borrower to carry out a road safety assessment as
part of the environmental and social impact assessment, so the results can be
used as an input for the design of the project. On our site visit, we will need to
take a good look at the site of the proposed new port entrance, since operations
at this location could generate a lot of noise and dust and exhaust emissions from
trucks moving through or idling in the area for long periods.
This would have implications for health in the nearby residential areas and
possible disturbances from nighttime illumination. The Borrower should apply the
World Bank Group’s Environmental, Health, and Safety Guidelines for Ports,
Harbors, and Terminals or the local regulations, whichever is more stringent. This
comparison between the Environmental, Health, and Safety Guidelines, and the
local regulations should be part of the environmental and social assessment.
Aisha and I will be able to help you review the results and provide guidance to the
Borrower.

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Capacity Building, Transparency and Stakeholder Engagement

What do we know about the relevant local regulations?
There are fairly good regulations for some aspects, such as ambient air quality
and noise levels in urban areas.
But a study that we carried out recently and the latest Systematic Country
Diagnostic and Country Partnership Framework all show that enforcement is quite
weak.

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It would be helpful to include some capacity building components in the project,

not just for monitoring and enforcement of the regulations but also to strengthen
information disclosure and stakeholder engagement.
As you know, capacity building, transparency and stakeholder engagement are all
important objectives of the Environmental and Social Framework.
Speaking of stakeholder engagement, it’s important to remember that this will be
a large construction project so there could be risks associated with the influx of
labor, including the introduction of sexually transmitted diseases, pressure on
local services and increased crime, among other things.

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Accessibility and Security

ESS4 also calls for incorporating universal access, that is ensuring unimpeded
access to all, into a project design wherever possible.
In the context of this project, this is likely to come up in the design of the new
passenger terminal, for example, in terms of access for the elderly and disabled.
It will be important to make sure that disability organizations have input into this
design.
We will also need to check whether national law adequately covers this or
whether we need to propose additional measures.

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We should also check with our procurement colleagues about including

appropriate provisions in bidding documents and contracts.
Another thing I have some concerns about is security practices.
I understand that the government has sometimes used soldiers to secure
industrial sites, and there have been some incidents of violence.
If the Port Authority is thinking of making any type of security arrangements for
this project, we will need to ask for a risk assessment and advise them to ensure
that the security measures are consistent with our Standards and with national
laws.

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Ecosystem Services are Environmental and Social

Let’s not forget about what ESS4 says about ecosystem services.
That sounds like an environmental issue, not a social impact.
It’s actually both, because ecosystem services are the economic and social
benefits that people derive from nature.
For example, if some fish spawning areas are destroyed due to the port
expansion, this could have serious adverse impacts on the local economy.

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Ecosystem Services
Ecosystem services are generally divided into four types:
 Provisioning services, such as the production of food and water
 Regulating services, such as the control of climate and disease
 Supporting services, such as nutrient cycles and crop pollination
 Cultural services, such as spiritual and recreational benefits
ESS4 relates specifically to provisioning and regulating services.

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Helpful Approaches, Mindsets, and Behaviors

Each of the Environmental and Social Standards has inter-connected
environmental and social objectives. Environmental and social development
specialists should recognize and be familiar with both aspects and should
collaborate to help ensure that issues are understood and addressed in an
integrated manner.

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Emergency Response Plan

Going back to the earlier point about chemicals or other hazardous materials…
since we’ve identified some significant potential risks we will want the Terms of
Reference for the Borrower’s environmental and social assessment to include
carrying out a risk hazard assessment that would provide the basis for developing
an Emergency Response Plan to address the risk of an emergency event.

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Emergency Response Plan

This is often also referred to as a Spill Prevention and Emergency Response Plan
to emphasize the need to take preventive measures.

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Emergency Events
ESS4 Paragraphs 19 - 23:
An emergency event is an unanticipated incident, arising from either natural or
man-made hazards (such as fire, explosions, leaks or spills). It may occur for a
variety of reasons, from extreme weather to failure to implement preventative
procedures.
For projects having the potential to generate emergency events, the Borrowers
will put in place measures designed to address the event in a coordinated manner
in order to avoid injury to the extent possible and to minimize, mitigate and
compensate any impacts that occur.
The Borrower will conduct a risk hazard assessment as part of the environmental
and social assessment of the project, and prepare an Emergency Response Plan
in coordination with the relevant local authorities and the affected communities
and/or workers. The Emergency Response Plan will be proportionate to the
nature and scale of the hazard and will include (as appropriate):
 Engineering controls (such as containment and automatic shut-off systems)
 Secure access to emergency equipment on-site and nearby

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 Notification procedures for designated emergency responders

 Diverse media channels for notification of the affected workers, community and
other stakeholders
 Training for emergency responders, including regular drills
 Public evacuation procedures
 Designated coordinator for Emergency Response Plan implementation
 Measures for environmental clean-up and restoration following any major
accident

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We should flag now that an Emergency Response Plan will likely need to be a
component of the Environmental and Social Commitment Plan and remind our
counterparts that Environmental, Health, and Safety Guidelines for Ports, Harbors,
and Terminals provide a lot of guidance on good international practice for these
aspects.
So ESS4 is the Standard that addresses the requirements for dealing with
hazardous materials?
Actually, three of the Standards are relevant here.

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Knowledge Check
Drag Item Drop Target
ESS2 Protecting workers’ health and
safety
ESS4 Protecting community health and
safety
ESS3 Managing chemicals and hazardous
materials

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ESS3 Objectives
I guess this leads us to ESS3.
Aside from hazardous materials, is there anything else we should discuss in
relation to our pollution Standard?
Actually, ESS3 covers all types of pollution prevention and management,
and also efficient use of resources such as water, energy and raw materials.

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ESS3 Objectives
 To promote the sustainable use of resources, including energy, water, and raw
materials
 To avoid or minimize adverse impacts on human health and the environment
by avoiding or minimizing pollution from project activities
 To avoid or minimize project-related emissions of short- and long-lived climate
pollutants
 To avoid or minimize generation of hazardous and non-hazardous waste
 To minimize and manage the risks and impacts associated with pesticide use

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Pollution and Greenhouse Gas Emissions

So the environmental and social assessment will need to identify and characterize
any sources of air, water or land pollution related to the project,
during both the construction and operational phases, and recommend how these
can be managed.
In general, ESS3 calls for mitigation measures to be proportionate to the risks and
impacts associated with the project and consistent with Good International
Industry Practice, meaning the relevant World Bank Group’s Environmental,
Health, and Safety Guidelines in the first instance.

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I visited the port last year and it seemed to me that the area may already be fairly
polluted.
For example, there are a lot of areas where the soil looks contaminated with oil.
Since the port has been in operation for a long time already, it’s possible that
there is historical pollution at the site.
This will have to be considered during the scoping process for the environmental
and social assessment,

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because if historical pollution exists that could affect communities, workers or the
environment, then the Borrower would need to undertake a health and safety risk
assessment and carry out some site remediation if necessary.
Doesn’t ESS3 also say something about greenhouse gases?
Yes, that’s right.
We start by making an assessment as to whether the project could involve
significant greenhouse gas emissions.

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If so, the Borrower is responsible for estimating gross greenhouse gas emissions
related to the project, but we may provide assistance if they need it.
And finally, on the resource efficiency side, the environmental and social
assessment should look for opportunities to conserve water and energy as much
as is technically and financially feasible, particularly during the construction and
operational phases.

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Discovery Question
From each of the following pairs, select the statement that reflects the
requirements of ESS3.
Correct Choice
When the project is a potentially significant user of energy, the
Borrower will demonstrate that all available energy-reducing
technologies and measures have been incorporated in the
project design.
X When the project is a potentially significant user of energy, in
addition to applying the resource efficiency requirements of
ESS3, the Borrower will adopt measures specified in the
Environmental, Health, and Safety Guidelines to optimize
energy usage, to the extent technically and financially feasible.

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ESS3
Resource efficiency
The Borrower will implement technically and financially feasible measures for
improving efficient
consumption of energy, water and raw materials, as well as other resources. Such
measures will integrate the principles of cleaner production into product design
and production processes to conserve raw materials, energy and water, as well
as other resources. Where benchmarking data are available, the Borrower will
make a comparison to establish the relative level of efficiency.

A. Energy use
The efficient use of energy is an important way in which the Borrower can
contribute to sustainable development. When the project is a potentially significant
user of energy, in addition to applying the resource efficiency requirements of this
Environmental and Social Standard, the Borrower will adopt measures specified
in the Environmental, Health, and Safety Guidelines to optimize energy usage, to
the extent technically and financially feasible.

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Discovery Question
Select the statement that reflects the requirements of ESS3.
Correct Choice
X For projects with a high water demand that have potentially
significant adverse impacts on communities, other users or the
environment, the requirements of ESS3 include:
Development and monitoring of a detailed water balance
Identifying opportunities for improvement in water use efficiency
Benchmarking to available industry standards of water use
efficiency
For projects with a high water demand that have potentially
significant adverse impacts on communities, other users or the
environment, the requirements of ESS3 include:

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Use of drip irrigation in any water-stressed area

Estimation of total water use over the life of the project with and
without adoption of water-efficient technologies
An assessment of water pricing policy to ensure affordability

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ESS3
B. Water use
When the project is a potentially significant user of water or will have potentially
significant impacts on water quality, in addition to applying the resource efficiency
requirements of this Environmental and Social Standard, the Borrower will adopt
measures, to the extent technically and financially feasible, that avoid or minimize
water usage so that the project’s water use does not have significant adverse
impacts on communities, other users and the environment. These measures
include, but are not limited to, the use of additional technically feasible water
conservation measures within the Borrower’s operations, the use of alternative
water supplies, water consumption offsets to maintain total demand for water
resources within the available supply, and evaluation of alternative project
locations.
Projects With High Water Demand
For projects with a high water demand that have potentially significant adverse
impacts on communities, other users or the environment, the following will apply:
 A detailed water balance will be developed, maintained, monitored and
reported periodically

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 Opportunities for improvement in water use efficiency will be identified and

implemented
 Specific water use (measured by volume of water used per unit production) will
be assessed
 Operations must be benchmarked to available industry standards of water use
efficiency

Objectives of ESS2
OK, I guess we’ve saved our new Standard on Labor and Working Conditions for
last.
I have to say, ESS2 is the one I know the least about.
It’s fairly new to me too, so I will probably need to consult with some of my
colleagues on how to apply it in the context of this project.

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ESS2 Objectives
 To promote safety and health at work
 To promote the fair treatment, non-discrimination and equal opportunity of
project workers
 To protect project workers, including vulnerable workers such as women,
persons with disabilities, children (of working age, in accordance with this
Environmental and Social Standard) and migrant workers, contracted workers,
community workers and primary supply workers, as appropriate
 To prevent the use of all forms of forced labor and child labor
 To support the principles of freedom of association and collective bargaining of
project workers in a manner consistent with national law
 To provide project workers with accessible means to raise workplace concerns

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The part of ESS2 that will probably be most familiar to you is occupational health
and safety.
We need to work with the Port Authority to make sure there are suitable plans for
occupational health and safety during construction, including things like the
provision of personal protection equipment, and accident, and incident reporting
procedures.
They should also have a system for monitoring and reporting on the
implementation of their occupational health and safety plan, including reporting
any fatalities or serious injuries to the World Bank.

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Occupational Health and Safety Requirements

 Identification of hazards
 Provision of preventative and protective measures for hazardous conditions or
substances
 Worker training
 Accident and incident reporting
 Emergency response
 Remedies for adverse impacts (occupational injuries, deaths, disability and
disease)

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Generally, the Borrower should develop and implement procedures to ensure a

safe working environment, and also to provide appropriate facilities for all workers,
paying particular attention to meeting the needs of those who may be vulnerable
in some way, such as women and disabled workers.
Migrant workers can also have different needs, such as for information provided in
their own languages.

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Discovery Question
What is normally the minimum age at which a person can be employed or
engaged in connection with a World Bank-financed project?
Correct Choice
12 years
X 14 years
16 years
18 years

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ESS2 Paragraphs 17-19

17. A child under the minimum age established in accordance with this
paragraph will not be employed or engaged in connection with the project. The
labor management procedures will specify the minimum age for employment or
engagement in connection with the project, which will be the age of 14 unless
national law specifies a higher age
18. A child over the minimum age and under the age of 18 may be employed or
engaged in connection with the project only under the following specific
conditions:
a) the work does not fall within paragraph 19 below
b) an appropriate risk assessment is conducted prior to the work commencing
and
c) the Borrower conducts regular monitoring of health, working conditions,
hours of work and the other requirement of this Environmental and Social
Standard
19. A child over the minimum age and under the age of 18 will not be employed
or engaged in connection with the project in a manner that is likely to be

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hazardous or interfere with the child’s education or be harmful to the child’s health
or physical, mental, spiritual, moral or social development

Discovery Question
ESS2 calls for workers to be informed or notified of which of the following?
Correct Choice
X Their rights related to hours of work, wages, overtime,
compensation, and benefits
X Conditions under which deductions will be made from wages
Their rights under national labor and employment law as well as
those arising from the requirements of ESS2 and from United
Nations/International Labor Organization Standards
Training opportunities to the extent that these may contribute
directly to opportunities for salary increase or promotion

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ESS2 Paragraphs 10-12

10. Project workers will be provided with information and documentation that is
clear and understandable regarding their terms and conditions of
employment. The information and documentation will set out their rights
under national labor and employment law (which will include any applicable
collective agreements), including their rights related to hours of work, wages,
overtime, compensation and benefits, as well as those arising from the
requirements of this Environmental and Social Standard. This information
and documentation will be provided at the beginning of the working
relationship and when any material changes to the terms or conditions of
employment occur.
11. Project workers will be paid on a regular basis as required by national law
and labor management procedures. Deductions from payment of wages will
only be made as allowed by national law or the labor management
procedures, and project workers will be informed of the conditions under
which such deductions will be made. Project workers will be provided with
adequate periods of rest per week, annual holiday and sick, maternity and
family leave, as required by national law and labor management procedures.
12. Where required by national law or the labor management procedures, project

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workers will receive written notice of termination of employment and details of

severance payments in a timely manner. All wages that have been earned,
social security benefits, pension contributions and any other entitlements will
be paid on or before termination of the working relationship, either directly to
the project workers or where appropriate, for the benefit of the project
workers. Where payments are made for the benefit of project workers, project
workers will be provided with evidence of such payments.

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Terms of Employment, Non-discrimination and Right to Organize

I’m familiar with occupational health and safety.
But I’m a bit at a loss about the other aspects since we haven’t really dealt with
them before.
Of course. Let’s go down this checklist I prepared for our meeting.
The first thing you need to know is that the Borrower needs to prepare and
implement written labor management procedures applicable to the project.

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The procedures should include provisions on terms of employment (such as their

rights to wages, benefits and timely notice of termination), non-discrimination and
equal opportunity for employment, the right to organize, prohibitions against child
labor, and forced labor and access to a grievance mechanism, in addition to safe
working conditions through the occupational health and safety measures.
And by the way, this has to be a separate grievance mechanism specifically for
direct and contracted workers, not the same as the one for project-affected people.

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Terms of Employment
Project workers will be provided with information and documentation that is clear
and understandable regarding their terms and conditions of employment. The
information and documentation will set out their rights under national labor and
employment law (which will include any applicable collective agreements),
including their rights related to hours of work, wages, overtime, compensation,
and benefits, as well as those arising from the requirements of this Environmental
and Social Standard. This information and documentation will be provided at the
beginning of the working relationship and when any material changes to the terms
or conditions of employment occur.
Project workers will be paid on a regular basis as required by national law and
labor management procedures. Deductions from payment of wages will only be
made as allowed by national law or the labor management procedures, and
project workers will be informed of the conditions under which such deductions
will be made. Project workers will be provided with adequate periods of rest per
week, annual holiday, and sick, maternity and family leave, as required by
national law and labor management procedures.
Where required by national law or the labor management procedures, project
workers will receive written notice of termination of employment and details of

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severance payments in a timely manner. All wages that have been earned, social
security benefits, pension contributions and any other entitlements will be paid on
or before termination of the working relationship, either directly to the project
workers or where appropriate, for the benefit of the project workers. Where
payments are made for the benefit of project workers, project workers will be
provided with evidence of such payments.

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Non-discrimination and Equal Opportunity

Decisions relating to the employment or treatment of project workers will not be
made on the basis of personal characteristics unrelated to inherent job
requirements. The employment of project workers will be based on the principle of
equal opportunity and fair treatment, and there will be no discrimination with
respect to any aspects of the employment relationship, such as recruitment and
hiring, compensation (including wages and benefits), working conditions and
terms of employment, access to training, job assignment, promotion, termination
of employment or retirement, or disciplinary practices. The labor management
procedures will set out measures to prevent and address harassment, intimidation
and/or exploitation. Where national law is inconsistent with this paragraph, the
project will seek to carry out project activities in a manner that is consistent with
the requirements of this paragraph to the extent possible.

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Right to Organize
In countries where national law recognizes workers’ rights to form and to join
workers’ organizations of their choosing and to bargain collectively without
interference, the project will be implemented in accordance with national law. In
such circumstances, the role of legally established workers’ organizations and
legitimate workers’ representatives will be respected, and they will be provided
with information needed for meaningful negotiation in a timely manner. Where
national law restricts workers’ organizations, the project will not restrict project
workers from developing alternative mechanisms to express their grievances and
protect their rights regarding working conditions and terms of employment. The
Borrower should not seek to influence or control these alternative mechanisms.
The Borrower will not discriminate or retaliate against project workers who
participate, or seek to participate, in such workers’ organizations and collective
bargaining or alternative mechanisms.

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SUMMARY
ESS2 Requirements
 The Borrower prepares and implements written labor management procedures
applicable to the project. This:
o Documents a clear agreement between the World Bank and the
Borrower and
o Provides the basis for the World Bank’s monitoring and due diligence
during project implementation

 Labor management procedures should include provisions on:

o Terms of employment (such as their rights to wages, benefits, and timely
notice of termination)

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o Non-discrimination and equal opportunity for employment

o The right to organize
o Prohibitions against child labor and forced labor
o Access to a grievance mechanism specifically for direct and contracted
workers

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Types of Workers
The second thing to know is that ESS2 has different requirements that apply to
different types of workers.
You mean, like men and women? Or skilled and unskilled workers?
No, I mean direct workers employed by the Borrower specifically to work on the
project, subcontractors, community workers, people employed by the Borrower’s
primary suppliers, and civil servants who contribute to project implementation but
are not employed under the project.
And the Standard applies not only to full-time workers, but also to part-time,
temporary, seasonal and migrant workers.

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Primary Suppliers
Primary suppliers are those suppliers who, on an ongoing basis, directly provide
goods or materials essential for the core functions of the project.

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ESS2 Requirements for Each Type of Worker

For direct workers, the Borrower has the responsibility to ensure that all the
requirements of ESS2 are met.
For contracted workers, the Borrower makes reasonable efforts to ascertain that
the third parties who engage the workers are legitimate and reliable. The
Borrowers are required to incorporate the requirements of ESS2 into the contracts
they make with the third parties, including remedies for non-compliance. The
Borrower also requires those contractors to include the same types of provisions
in any contracts they in turn make with sub-contractors. The Borrower also needs
to manage and monitor the performance of its contractors in relation to these
requirements.
For community workers, ESS2 requirements are to be applied to them in a
proportionate way. The idea is that some elements of the requirements, such as
ensuring that workers are paid regularly and have safe working conditions, and
avoiding child and forced labor apply in all cases, while some other standard
ESS2 requirements may not be relevant sometimes, depending on the nature and
scope of the project, the specific activities the workers are engaged to do, and the
types of potential risks and impacts involved.

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For primary supply workers, the Borrower will identify potential risks of child labor,
forced labor and serious safety issues which may arise in relation to primary
suppliers. Where there is a significant risk of child labor or forced labor related to
primary supply workers, the Borrower will require the primary supplier to identify
those risks, consistent with the Environmental and Social Standards requirements
relating to child or forced labor. If child labor or forced labor cases are identified,
the Borrower will require the primary supplier to take appropriate steps to remedy
them. Where there is a significant risk of serious safety issues related to primary
supply workers, the Borrower will require the relevant primary supplier to
introduce procedures and mitigation measures to address such safety issues.
Such procedures and mitigation measures will be reviewed periodically to
ascertain their effectiveness. The labor management procedures will set out roles
and responsibilities for monitoring primary suppliers. The ability of the Borrower to
address these risks will depend upon the Borrower’s level of control or influence
over its primary suppliers. Where remedy is not possible, the Borrower will, within
a reasonable period, shift the project’s primary suppliers to suppliers that can
demonstrate that they are meeting the relevant requirements of this
Environmental and Social Standard.

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Discovery Question
Does ESS2 apply to government civil servants who are working in connection with
a project?
Correct Choice
Yes, they are treated as direct workers
No ESS2 requirements apply to them
X All ESS2 requirements apply to them if there has been a legal
transfer of their employment to the project
X If not legally transferred, only the provisions on child and forced
labor and Occupational Health and Safety apply to them

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ESS2 Paragraph 8
Where government civil servants are working in connection with the project,
whether full-time or part-time, they will remain subject to the terms and conditions
of their existing public sector employment agreement or arrangement, unless
there has been an effective legal transfer of their employment or engagement to
the project. ESS2 will not apply to such government civil servants, except for the
provisions of paragraphs 17 to 20 (Protecting the Work Force) and paragraphs 24
to 30 (Occupational Health and Safety).

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Primary Supply Workers

And what is this about “primary supply workers?”
What is the Borrower expected to do there?
That one is a bit complicated.
To start with, as part of the environmental and social assessment for the project,
the Borrower needs to identify potential risks of child labor, forced labor and
serious safety issues in relation to primary suppliers.

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If the environmental and social assessment concludes there are significant risks,
the Borrower needs to require the relevant suppliers to introduce procedures and
measures to address them and to review the situation periodically to ascertain
that they are effective.
In the case of child and forced labor, the Borrower has to monitor the primary
suppliers, and if any cases are identified, require the suppliers to take steps to
remedy them.
The Borrower’s specific responsibilities for all of this are set out in the labor
management procedure.

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One last thing: you remember I mentioned labor influx earlier, as a potential issue
for community health and safety.
Well, bringing a large labor force to a worksite is also an issue for workers’ health
and safety and general working conditions, particularly if there will be a labor
camp for the workers.
The labor management procedures should set out criteria for their living
conditions, and this needs to be incorporated into any contracts which will involve
the use of contracted workers.

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Pest and Pesticide Management

OK, I think we’re just about ready for the mission.
Just to be sure, are there any other issues under ESS2, ESS3, or ESS4 that we
need to be thinking about?
ESS3 also covers management of pesticides and integrated pest management.
This may be less intuitive, but I remember a similar major construction near a river
in another project.
The construction and disturbance resulted in movement of rats and snakes out
into the surrounding areas, creating a lot of problems for residents.

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Pesticide Management
Where it has been determined that pesticides are needed to address significant
economic or health impacts of pests or vector-borne diseases, they should be
selected, formulated, packaged, handled, stored, disposed of and applied
according to relevant international Standards (e.g., the Food and Agricultural
Organization’s International Code of Conduct on Pesticide Management) and the
World Bank Group Environmental, Health, and Safety Guidelines. Key elements
of good pesticide management include:
 Avoid pesticide products containing active ingredients that are restricted under
national laws or international conventions, except for purposes defined as
acceptable under the relevant laws or conventions
 Avoid formulated pesticide products that fall within criteria of carcinogenicity,
mutagenicity or reproductive toxicity as set forth by relevant international
agencies
 Avoid use of any other pesticide products that are internationally recognized to
pose other potentially serious risks to human health or the environment if the
country lacks restrictions on their distribution and use or if they are likely to be
used by, or accessible to, farmers or others without the training, equipment

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and facilities to handle, store and apply them properly

 Demonstrate that pesticides used for public health purposes are safe for
inhabitants and domestic animals in the treated areas as well as for the
personnel applying them
 Use pesticides only for the purposes for which they are legally registered or
otherwise authorized
 When using pesticides, take into account the need to prevent the development
of resistance in the target species

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Integrated Pest/Vector Management

Where a project creates the need for pest management measures the Borrower
should give preference to Integrated Pest Management or Integrated Vector
Management approaches. These refer to ecologically based pest control practices
that seek to reduce reliance on synthetic chemical pesticides. Main elements
include:
 Managing pests/vectors by keeping them below economically damaging levels
rather than seeking to eradicate them
Integrating multiple control methods, relying on non-chemical methods as
much as possible
 Applying pesticides only when monitoring indicates they are reaching
damaging levels, and then selecting and applying them in ways that minimize
adverse effects on humans, the environment and beneficial organisms such as
natural enemies of pest species
 For any project involving significant pest management issues or activities that
may lead to significant pest and pesticide management issues, or when
proposed the financing of pest control products represents a large component
of the project, the Borrower will prepare a Pest Management Plan.

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There’s also a risk of increased mosquitoes and an increased prevalence of

mosquito-borne diseases if the port construction or operation leads to new areas
of standing water.
Again, the environmental and social assessment should look at these aspects and
recommend whether the Borrower needs to develop a pest or vector management
plan.
If this is likely to involve the use of pesticides, ESS3 includes specific
requirements for selecting and handling them in order to minimize risks to people
and the environment.

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Recap
Here is a quick recap of the main points covered in this module.
 ESS2
 ESS 3
 ESS4
 Helpful Approaches, Mindsets, and Behaviors

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ESS2
 Promote safety and health at work
 Promote the fair treatment, non-discrimination and equal opportunity of project
workers
 Protect project workers, including vulnerable workers, children (of working age)
and migrant workers, contracted workers, community workers and primary
supply workers, as appropriate
 Prevent the use of all forms of forced labor and child labor
 Support the principles of freedom of association and collective bargaining of
project workers
 Provide project workers with accessible means to raise workplace concerns

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ESS 3
 Promote the sustainable use of resources, including energy, water and raw
materials
 Avoid or minimize adverse impacts on human health and the environment by
avoiding or minimizing pollution from project activities
 Avoid or minimize project-related emissions of short and long-lived climate
pollutants
 Avoid or minimize the generation of hazardous and non-hazardous waste
 Minimize and manage the risks and impacts associated with pesticide use

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ESS4
 Anticipate and avoid adverse impacts on the health and safety of project-
affected communities
 Promote quality and safety, and considerations relating to climate change, in
the design and construction of infrastructure, including dams
 Avoid or minimize community exposure to project-related traffic and road
safety risks, diseases and hazardous materials
 Have in place effective measures to address emergency events

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Helpful Approaches, Mindsets, and Behaviors

 Include both Environmental and Social Development Specialists in the project
team from an early stage
 Each of the Environmental and Social Standards has inter-connected
environmental and social objectives
 Environmental and Social Development Specialists should recognize and be
familiar with both aspects
 Environmental and Social Specialists should collaborate to ensure that issues
are understood and addressed in an integrated manner

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