Appraisal Date: November 18, 2004

Board Date: January 27, 2005Other financing amounts by source: NordicDevelopment FundManaging Unit: AFTEGLending Instruments: Specific Investment Loan

Loan/Credit amount(Sm):IDA: 25

($m)6

Sector: Power(100%)

Integrated Safeguards Data Sheet (ISPS)Section I - Basic InformationDate ISPS Updated: October 25, 2004 Report No.;AC 1098A. Basic Project DataA.I. Project StatisticsCountry: RwandaProject: Urgent Electricity Rehabilitation

Project ID: P09Q194TTL: Malcolm Cosgrove-Davies

Total project cost (by component): see below

Is this project processed under OP 8.50 Yes? [] No? [X ]Environmental Category: BA.2. Project ObjectivesThe overall development objectives of the proposed project are to: (i) Alleviate powershortages; and (ii) enhance the capabilities of energy sector institutions.

Key performance indicators toward these objectives are:

Objective (i) - reduction in outages;Objective (ii) - Revised power sector framework, promoting private sector participation

A.3. Project Description(A) Power System Reinforcement (Total US$ 24.15 m, - IDA US$ 18 m; NDF US$ 6m;Electrogaz US$0.15m)This component supports the project objective of alleviating power shortages and improvingquality of power supply in the existing Electrogaz network. These investments will beimplemented in two phases. The first phase, for which bid packages are under preparation, wouldcover the provision of additional thermal generation to meet immediate shortfalls, urgent repairand refurbishment of network, and preparatory work for the balance investments. The secondphase investments would address remaining short term investment based on the recommendationsof the consultant, advising on implementation of the low cost network designs.

(B) Technical Assistance and Capacity Building (Total US$ 4.05 m -IDA US$ 4 m; GOR US$0.05)This component will finance studies required for policy/ program development of RURA andElectrogaz. It will also support training for Minlnfra, Rwanda Utility Regulatory Authority(RURA), and Electrogaz' personnel. A comprehensive needs review will be carried out by ProjectCoordination Unit PCU in consultation with all the agencies, to detail specific trainingrequirements and plan for provision of this training, which will be agreed with IDA.

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(C) Domestic Resource Development & Efficient Utilization : (Total US$ 3.05 m -IDA US$ 3m; IGOR US$ 0.05m)

This component will help prepare for the addition of more economic domestically available,hydro generation resources - to meet future demand growth in the main grid. The component alsoenvisages providing technical support to development & implementation of good carbonizationpractices and use of improved stoves for efficient utilization of available biomass resources inRwanda. It will also initiate a process of decentralized rural electrification via investments in high-priority micro-hydro based independent grids.

A.4. Project Location and salient physical characteristics relevant to the safeguard analysis:Diesel power plant: Kigali environs (near Jabana Substation)Substations: Congo border (Gisenyi & Mururu), Uganda border (Rulindo)Distribution rehabilitation and extension: country-wide in scope

B. Check Environmental Category A [ ], B [X], C LLFirj

Comments:C. Safeguard Policies Triggered

Environmental Assessment (OP/BP/GP 4.01)Natural Habitats (OP/BP 4.04)Pest Management (OP 4.09)Cultural Property (draft OP 4.1 1 - OPN 1 1 .03-)Involuntary Resettlement (OP/BP 4.12)Indigenous Peoples (OD 4.20)Forests (OP/BP 4.36)Safety of Dams (OP/BP 4.37)Projects in Disputed Areas (OP/BP/GP 7.60)'Projects on International Waterways (OP/BP/GP7.50)

Yes No[X] [][] [X][1 rxi[] [X]

[X] [][1 [XT[] [X][] [X][] [X]

[] [X]

Section II - Key Safeguard Issues and Their ManagementD. Summary of Key Safeguard Issues.D. 1 . Describe any safeguard issues and impacts associated with the proposed project. Identify anddescribe any potential large scale, significant and/or irreversible impacts.

Environmental management of impacts associated with this project have been addressed by theGovernment of Rwanda in their Environmental and Social Management framework (ESMF).

Project environmental impacts are mainly associated with component A, which are primarilyinvestments in the generation, transmission and distribution network.

By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties'claims on the disputed areas

For Generation, investments will be made to increase capacity through thermal generating unitsand rehabilitation of small hydro units. Impacts associated with the thermal generating units areexpected to be those associated with civil/construction works for housing of these units. Duringoperations, impacts associated with air quality in the immediate vicinity of the power stations,emission of GHG's, impacts from water and soil contamination from fuel leaks due totransportation, storage and handling of fuels and lubricants, and noise pollution.

With regards the small hydro units, these are all run-off-river type units, below 500kw each andtherefore, there will be no ponding, inundation or flooding associated with these units. Impactsassociated with this are therefore expected to be local and not significant, and are not expected toimpact the local aquatic ecosystems.

With regards project investments in transmission and distribution networks, environmentalimpacts will be insignificant in most cases since investments will be limited to rehabilitation ofexisting lines on existing routes. In cases where new lines are required to extend the network andto connect the small hydro units, impacts will be minimized by ensuring routes do not impactnatural habitats, such as wetlands and forest areas.

Social impacts cannot be ruled out, since land acquisition will be required. The Government hasprepared and disclosed a Resettlement Policy Framework (RPF) that is consistent with the Bank'sPolicy on Involuntary Resettlement, OP 4.12.

The Transmission Line for Lake Kivu Gas Development and Power Generation Project is subjectto the conclusion of a satisfactory Power Purchase Agreement with the developer. When theagreement is reached, to address significant impacts that may be associated with this line, theGovernment will conduct and prepare a specific EA as part of the feasibility studies package, thatwill address these impacts. At this stage, planning information on the line is not available.

D.2 Describe any potential indirect and/or long term impacts due to anticipated future activities inthe project area.

This project has the potential to alleviate some of the root causes of Deforestation in Rwanda inthose areas where electrical power supply is restored on a predictable and more reliable basis, byreducing the demand for fuelwood and charcoal as the main source of energy. Therefore, this willhave a cumulative positive impact on the conservation of forest ecosystems and their function asa natural habitat.

Also, due to the unreliability of the rains over the recent past associated partly with the ongoingcrisis with low water levels in the lakes that provide the source for the major hydro-power plants (not covered by this project), this project will support the increased reliance on electrical powergeneration and supply from diesel engines in the short term, thereby relieving pressure on thelakes allowing them to raise and stabilize their water levels so that the ecosystems andbiodiversity of species they sustain are not irreparably affected.

D.3. Describe the treatment of alternatives (if relevant)

N/A

D.4. Describe measures taken by the borrower to address safeguard issues. Provide an assessment

of borrower capacity to plan and implement the measures described.

The borrower has prepared an Environmental and Social Management Framework (ESMF) thatestablishes tangible institutional and budgetary provisions to ensure environmental and socialmanagement plans are prepared at the appropriate time that address the impacts discussed in Dl.above.

Furthermore, the government has also prepared a Resettlement Policy Framework (RPF) toaddress the needs of those communities and households who may be affected by the landacquisition needs of the project.

The government has experience of implementing these type of instruments from other ongoingbank projects in Rwanda and measures to mitigate any gaps in their capacity to address this havebeen included in the project.

D.5. Identify the key stakeholders and describe the mechanisms for consultation and disclosureon safeguard policies, with an emphasis on potentially affected people.

Both the RPF and ESMF are consistent with bank safeguards policies, were subjected torepresentative consultations in Rwanda. Further consultations, with potentially affected peoplewhen they are identified, will be done as part of the preparation of the environmental and socialmanagement plans as stated in the ESMF and RPF.

The documents have also been disclosed in Rwanda and at the infoshop of the Bank.

F. Disclosure Requirements DateEnvironmental Assessment/Audit/Management Plan/Other:Date of receipt by the Bank 10/31/2004Date of "in-country" disclosure 11/10/2004Date of submission to InfoShop 11/03/2004For category A projects, date of distributing the Executive Summary of the EA to the ExecutiveDirectors Not ApplicableResettlement Action Plan/Framework/Policy Process:Date of receipt by the Bank 10/31 /2004Date of "in-country" disclosure 11/10/2004Date of submission to InfoShop 11/03/2004Indigenous Peoples Development Plan/Framework:Date of receipt by the Bank Not ApplicableDate of "in-country" disclosure Not ApplicableDate of submission to InfoShop Not ApplicablePest Management Plan:Date of receipt by the Bank Not ApplicableDate of "in-country" disclosure Not ApplicableDate of submission to InfoShop Not ApplicableDam Safety Management Plan:Date of receipt by the Bank Not ApplicableDate of "in-country" disclosure Not ApplicableDate of submission to InfoShop Not ApplicableIf in-country disclosure of any of the above documents is not expected, please explain why.

N/A. All documents disclosed locally

Section HI - Compliance Monitoring Indicators at the Corporate Level(To be filled in when the ISPS is finalized by the project decision meeting)OP/BP 4.01 - Environment Assessment: Yes NoDoes the project require a stand-alone EA (including EMP) report? ESMF XIf yes, then did the Regional Environment Unit review and approve the EAreport? This is a delegated project and clearance was granted by SM as Xadvised by task team.Are the cost and the accountabilities for the EMP incorporated in the ,,credit/loan?OP/BP 4.04 - Natural Habitats: Yes NoWould the project result in any significant conversion or degradation of „.. „..critical natural habitats?If the project would result in significant conversion or degradation of other(non-critical) natural habitats, does the project include mitigation measures N/A N/Aacceptable to the Bank?OP 4.09 - Pest Management: Yes NoDoes the EA adequately address the pest management issues? N/A N/AIs a separate PMP required? N/A N/AIf yes, are PMP requirements included in project design? N/A N/ADraft OP 4.11 (OPN 11.03)- Cultural Property: Yes NoDoes the EA include adequate measures? N/A N/ADoes the credit/loan incorporate mechanisms to mitigate the potential adverse -, , . ...impacts on physical cultural resources? '_'

OD 4.20 - Indigenous Peoples:Has a separate indigenous people development plan been prepared inconsultation with the Indigenous People?If yes, then did the Regional Social Development Unit review and approve theplan?If the whole project is designed to benefit IP, has the design been reviewedand approved by the Regional Social Development Unit?OP/BP 4.12 - Involuntary Resettlement:Has a resettlement action plan, policy framework or policy process beenprepared? A RPF was prepared.If yes, then did the Regional Social Development Unit review and approve theplan / policy framework / policy process? Cleared by SM as advised by taskteam.OP/BP 4.36 - Forests:Has the sector- wide analysis of policy and institutional issues and constraintsbeen carried out?Does the project design include satisfactory measures to overcome theseconstraints?Does the project finance commercial harvesting, and if so, does it includeprovisions for certification system?OP/BP 4.37- Safety of Dams:Have dam safety plans been prepared?Have the TORs as well as composition for the independent Panel of Experts(POE) been reviewed and approved by the Bank?Has an Emergency Preparedness Plan (EPP) been prepared and arrangementsbeen made for public awareness and training?OP 7.50 - Projects on International Waterways:Have the other riparians been notified of the project?If the project falls under one of the exceptions to the notification requirement,then has this been cleared with the Legal Department, and the memo to theRVP prepared and sent?What are the reasons for the exception?

Please explain:Has the RVP approved such an exception?OP 7.60 - Projects in Disputed Areas:Has the memo conveying all pertinent information on the international aspectsof the project, including the procedures to be followed, and therecommendations for dealing with the issue, been prepared, cleared with theLegal Department and sent to the RVP?Does the PAD/MOP include the standard disclaimer referred to in the OP?BP 17.50- Public Disclosure:Have relevant safeguard policies documents been sent to the World Bank'sInfoshop?Have relevant documents been disclosed in-country in a public place in a formand language that are understandable and accessible to project-affected groupsand local NGOs?All Safeguard Policies:Have satisfactory calendar, budget and clear institutional responsibilities beenprepared for the implementation of the safeguard measures?Have safeguard measures costs been included in project cost?

Yes

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Will the safeguard measures costs be funded as part of projectimplementation?Does the Monitoring and Evaluation system of the project include themonitoring of safeguard impacts and measures?Have satisfactory implementation arrangements been agreed with theborrower and the same been adequately reflected in the project legaldocuments?

X

X

X

Signed and submitted by:Task Team Leader:

Project Safeguards Specialist 1:

Project Safeguards Specialist 2:Project Safeguards Specialist 3:

Name

Malcolm Cosgrove-Davies r\-

James Orehmie Monday

DateJanuary 18,

2005uary 18,2005

Approved by:Regional SafeguardsCoordinator:Comments:Acting, Sector Manager:

Comments:

Name

N/A Delegated Project

Joel Maweni

Date

N/A

January 18,2005