GUIDELINES ON ENVIRONMENTAL AND SOCIAL CONSIDERATIONS

Transcription

1 GUIDELINES ON ENVIRONMENTAL AND SOCIAL CONSIDERATIONS IN TRADE INSURANCE January 2015 Incorporated Administrative Agency Nippon Export and Investment Insurance

2 GUIDELINES ON ENVIRONMENTAL AND SOCIAL CONSIDERATIONS IN TRADE INSURANCE - January Table of Contents I. Commitment of NEXI according to the captioned guidelines 1 II. Policy 1 (page) III. Procedures for Confirmation of and Social (Pre-commitment) 1. Screening 2 2. Categorization 2 3. Reviews 4 IV. Incorporating Reviews into Decision-making 5 V. Assurance of and Social (Post-Commitment) 6 VI. Disclosure of Information Regarding Confirmation of and Social 6 VII. Ensuring Compliance with the Guidelines 7 Exhibit 1 and Social Required of Covered Projects 8 Exhibit 2 ESIA Reports for A Projects 11 Appendix 1 Information Required for Screening Process 12 Appendix 2 Categories and s in Checklist 13 Appendix 3 s Requiring Monitoring 14 << References >> 15 I. Screening Form 17 II. Checklists 21 III. Monitoring Form 168 IV. Frequently Asked Questions (FAQ) 170 NB: If there is any ambiguity in English version and/or any inconsistency with Japanese version, the Japanese version prevails.

3 Established on April 1, 2001 Partially revised on April 1, 2002 Partially revised on March 29, 2005 Partially revised on November 29, 2006 Partially revised on July 21, 2009 Partially revised on January 28, 2015 GUIDELINES ON ENVIRONMENTAL AND SOCIAL CONSIDERATIONS IN TRADE INSURANCE I. Commitment of NEXI according to the captioned guidelines These guidelines (hereinafter referred to as the "Guidelines") provide Policy and procedures employed by Nippon Export and Investment Insurance (hereinafter referred to as "NEXI") to confirm environmental and social considerations in trade insurance. According to the Guidelines, NEXI commits itself, in accordance with the policy of the Japanese Government, to contribute to sound development of Japan's external transactions such as foreign trade by confirming whether the project sponsors and relevant parties (hereinafter referred to as the "project sponsors") have implemented appropriate environmental and social considerations in the projects (hereinafter referred to as the "project" or the "projects") subject to NEXI s insurance services. II. Policy The project sponsors are responsible for environmental and social considerations for the project. NEXI confirms such considerations in light of the Guidelines. NEXI encourages the project sponsors in the projects that are subject to NEXI s insurance services, via the applicants for insurance services such as exporters and others (hereinafter referred to as the "Applicants"), to undertake appropriate environmental and social considerations in accordance with the nature of the project, based on the principles listed in Exhibit 1 of the Guidelines. NEXI also promotes awareness of the OECD Guidelines for Multinational Enterprises among appropriate parties such as project sponsors via the Applicants. NEXI confirms whether the project sponsors implement appropriate environmental and social considerations, so as to prevent or mitigate potential impacts on environment (i.e. not only on the natural environment, but also on social issues such as involuntary resettlement and respect for the human rights of indigenous peoples: hereinafter referred to as the "environment") which may be caused by the projects relating to insurance (two years or more) services from NEXI. NEXI s confirmation of environmental and social considerations is one of the most important components in its risk assessment. NEXI incorporates the outcomes of its confirmation of environmental and social considerations in its decisions on issuance of commitment (or on conclusion of an insurance contract if application for commitment is not made. The same applies hereafter.). If, as a result of its confirmation of environmental and social considerations, NEXI judges that the relevant project will cause adverse impacts on the environment, it encourages the project sponsors, through the Applicants, to undertake appropriate environmental and social considerations, and there may be cases where a commitment letter is not issued. NEXI prescribes its procedures for confirmation of environmental and social considerations such as to classify the projects into 3 categories through screening and to implement Review for each category and engages to disclose information. In so doing, NEXI endeavors to ensure transparency, predictability and accountability in its decision on issuance of commitment from the viewpoint of environmental and social considerations, taking into account the constrains of the Applicants' business confidentiality and competitive concerns. Even after making a decision on issuance of commitment, NEXI will take appropriate actions to confirm the status of monitoring by the project sponsor via the Applicants when necessary. 1

4 III. Procedures for Confirmation of and Social (Pre-commitment) 1. Screening NEXI confirms environmental and social considerations in the projects to be applied by its insurance service, in principle, at the stage of risk assessment. The Applicants should submit a copy of the Screening Form to NEXI head office at the stage of application for commitment of NEXI's trade insurance for projects. Applicants who wish to apply for the above mentioned procedures through Internet service may apply in accordance with the Usage of Web Application Service that is provided separately. NEXI classifies the project into one of the categories prescribed in (2) below based on the Screening Form submitted by the Applicants at the earliest stage of risk assessment (this process is hereinafter referred to as screening ). NEXI may request the Applicants to submit additional information when necessary. NEXI conducts screening in terms of such factors as the project sponsor, the sector, size, location, and the potentiality of adverse environmental impacts by identifying its potential environmental impacts based on the information submitted by the Applicants (see Appendix 1), and by taking into consideration whether environmental review is necessary, and if necessary, the degree of necessity of such review. NEXI may revise the categorization of the projects when necessary, e.g., in cases where environmental impacts worth considering come to light after screening once being performed on the basis of information provided by the Applicants. 2. Categorization [ A] Projects that are likely to have significant adverse impacts on the environment are classified into A. Projects with complicated or unprecedented impacts that are difficult to assess are also classified as A. The impacts of A projects may affect an area broader than the sites or facilities subject to physical construction. A, in principle, includes projects in sensitive sectors (i.e., sectors that are liable to cause adverse environmental impacts) or with sensitive characteristics (i.e., characteristics that are liable to cause adverse environmental impacts) and projects located in or near sensitive areas. An illustrative list of sensitive sectors, sensitive characteristics and sensitive areas is given below: (1) Sensitive Sectors Large-scale projects in the following sectors: a) Mining b) Oil and natural gas development c) Pipelines d) Iron and steel (projects that include large furnaces) e) Non-ferrous metals smelting and refining f) Petrochemicals (manufacture of raw materials; including complexes) g) Petroleum refining h) Oil, gas and chemical terminals i) Paper and pulp j) Cement plants (including a greenfield quarry) k) Manufacture and transport of toxic or poisonous substances regulated by international treaties, etc. l) Thermal power m) Nuclear power 2

5 n) Hydropower, dams and reservoirs o) Power transmission and distribution lines involving large-scale involuntary resettlement, large-scale logging or submarine electrical cables p) Roads, railways and bridges q) Airports r) Ports and harbors s) Sewage and wastewater treatment having sensitive characteristics or located in sensitive areas or their vicinity t) Waste management and disposal u) Agriculture involving large-scale land-clearing or irrigation v) Forestry w) Tourism (construction of hotels, etc.) (2) Sensitive Characteristics a) Large-scale involuntary resettlement or large-scale loss of means of livelihood b) Large-scale groundwater pumping c) Large-scale land reclamation, land development and land-clearing d) Large-scale logging (3) Sensitive Areas Projects in the following areas or their vicinity a) National parks, nationally-designated protected areas (coastal areas, wetlands, areas for ethnic minorities or indigenous peoples, and cultural heritage, etc. designated by national governments) b) Areas considered to require careful consideration by the country or locality <Natural > i. Forests with important ecological value (including primary forests and natural forests in tropical areas) ii. Habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats) iii. Habitats of rare species requiring protection under domestic legislation, international treaties, etc. iv. Areas in danger of large-scale salt accumulation or soil erosion v. Areas with a remarkable tendency towards desertification [ B] <Social > i. Areas with unique archeological, historical or cultural value ii. Areas inhabited by ethnic minorities, indigenous peoples or nomadic peoples with traditional ways of life (including areas which are used for cultural or spiritual purposes) and other areas with special social value Projects with potential adverse environmental impacts less adverse than those of A are classified as B. Typically, these impacts are site-specific, few if any are irreversible, and in most cases normal mitigation measures can be designed more readily. [ C] A proposed project is classified as C, if it is likely to have minimal or no adverse environmental impacts. Projects that correspond to one of the following (1) to (3) are, in principle, classified as C, with the exception of projects with sensitive characteristics and projects located in or near sensitive areas as included in A: 3

6 a) Projects of which insurable value is SDR 10 million or less; b) Sectors or projects in which no particular environmental impact would be normally expected (e.g., maintenance of existing facilities and acquisition of equity interest without additional capital investment); or c) Cases in which involvement of the Applicants is only a minor part of a project, such as the export of items of machinery or equipment that is not connected with a particular project, and where there would be little reasonable significance in NEXI s conducting an environmental review. 3. Reviews After the screening process, NEXI carries out environmental reviews for the projects subject to NEXI's insurance services, according to the following procedures for each category. a) NEXI requests from the Applicants information on potential environmental impacts of the concerned project, environmental standards to be applied to the concerned project by the relevant parties and the results of public consultations with relevant stakeholders. Exchanging information with relevant institutions, NEXI conducts appropriate environmental reviews utilizing information provided by the stakeholders, including local residents and local NGOs (hereinafter referred to as the stakeholders ). Also, where appropriate, NEXI considers any statements or reports made publicly available by Japan s national contact point on the OECD Guidelines for Multinational Enterprises. b) NEXI ascertains whether a project complies with environmental laws and standards of the host national and local governments concerned. c) NEXI ascertains whether a project meets the following standards. World Bank Safeguard Policies or International Finance Corporation (hereinafter referred to as IFC ) Performance standards Notwithstanding the above, IFC Performance Standards in the cases of (i) limited recourse or non-recourse project finance projects, (ii) structured financing transactions that share characteristics with project finance, (iii) other financial institutions who are forming a significant part of the project applying IFC Performance Standards, and (iv) other projects recognized as appropriate. In addition, if there is a relevant section of the, Health, and Safety Guidelines (EHS Guidelines) of the World Bank Group, NEXI will confirm whether the projects meet that section. d) When deemed appropriate, NEXI also uses, as reference points or benchmarks, standards established by other international financial institutions, other internationally recognized standards, and standards or good practices established by developed countries such as Japan. e) If NEXI believes environmental and social considerations of the project substantially deviate from these standards and good practices, it confirms the background and rationale for this, and when necessary, countermeasures against such deviation. [ A] reviews for A projects examine the projects potential negative and positive environmental impacts as well as measures to prevent, minimize, mitigate or compensate for the potential negative impacts and to improve environmental performance. The Applicants must submit the following documents for A projects to NEXI s head office. and Social Impact Assessment (ESIA) reports (see Exhibit 2) and environmental permit certificates issued by the project country s government (hereinafter referred to as the ESIA reports, etc. ) 4

7 Resettlement action plans including livelihood restoration plans when necessary (see Exhibit 1(7) Involuntary Resettlement) in the case of projects involving large-scale involuntary resettlement or large-scale loss of means of livelihood Plans for indigenous peoples (see Exhibit 1(8)Indigenous Peoples)) in the case of projects in which measures for indigenous peoples are required. NEXI undertakes its environmental reviews based on these documents prepared by the project sponsors and submitted through the Applicants. During environmental reviews, NEXI confirms involvement of the stakeholders and the progress of disclosure in connection with the relevant projects, which are implemented according to the host country's system of environmental impact assessment. [ B] The scope of the environmental review may vary depending on each project and that for B projects is narrower than that for A projects. Similarly to A reviews, environmental reviews for category B projects examine the project's potential negative and positive environmental impacts, including measures necessary to prevent, minimize, mitigate or compensate for the potential negative impacts and to improve environmental performance. NEXI conducts environmental reviews based on the information provided by the Applicants. In cases where an ESIA procedure has been developed, the ESIA reports, etc. may be referred to, but this is not a mandatory requirement. [ C] For C projects, environmental reviews will be omitted. The corresponding environmental checklists (see Exhibit 2) for each sector will be referred to in conducting the aforementioned reviews. IV. Incorporating Reviews into Decision-making The outcome of screening and environmental review is taken into account in NEXI s decisions on issuance of commitment. In cases where a certain project might have any significant adverse environmental impact on the host country by lack of appropriate environmental and social considerations, NEXI will encourage the project sponsors, via the Applicants, to give such appropriate considerations. Under certain circumstances, where the project is not recognized to be contributive to sound development of Japan's external transactions or economic or social development of the host country, there may be cases where a commitment letter is not issued. NEXI may include additional requirements on environmental and social considerations (hereinafter referred to as the " Special Clauses, etc.") in the commitment letters, insurance policies and other accompanying documents to assure the implementation of environmental and social considerations by the Applicants or the project sponsors. Notwithstanding other provisions in the Guidelines, however, in exceptional cases where, given the nature of the project, documents necessary for environmental reviews are not available at the time when the decision on the commitment issuance is required, NEXI may make a decision on the commitment issuance based on the condition that it will undertake the environmental reviews after the commitment decision. In this case, NEXI makes confirmation and disclosure with respect to environmental and social considerations prior to the commitment decision to the extent possible, in addition to appropriately applying the policies and procedures of the Guidelines upon environmental reviews. If NEXI is unable to confirm the appropriate environmental and social considerations at the environmental review after the commitment decision, NEXI may cancel the commitment based on the Special Clauses, etc. or may terminate the insurance contract if the insurance contract has been signed already. 5

8 V. Assurance of and Social (Post-Commitment) (1) When necessary, even after commitment, NEXI requests the concerned project sponsors via the Applicants to provide information to judge whether environmental and social considerations are appropriately implemented. For A and B projects, in order to confirm the project sponsors' appropriate implementation of environmental and social considerations, NEXI in principle confirms through the Applicant for a certain period of time from issuance of commitment the results of monitoring by the project sponsors of items which could have significant environmental impacts (see Exhibit 3). (2) If NEXI judges that there is a need for improvement in the situation with respect to environmental and social considerations regarding the project to which a commitment letter has been issued, it may ask the relevant project sponsor through the Applicant to take appropriate actions, taking into account practicability of the measures and the extent of the Applicants involvement in the project. (3) NEXI may cancel the commitment (or the contract after conclusion of the insurance contract) in the following cases: a) Where it is proved that there is any false description in the Screening Form submitted by the Applicant at the time of commitment application; b) Where the Applicant has intentionally or unintentionally failed to report to NEXI any critical fact on its judgment in confirming environmental and social considerations or made a false report; or c) Where the Applicant has violated any of the Special Clauses, etc. VI. Disclosure of Information Regarding Confirmation of and Social NEXI respects business confidentiality of the Applicants and engages in disclosing information on confirmation of environmental and social considerations in accordance with the following clauses of 1) to 6) to ensure its transparency and accountability, taking into account the nature of each project. NEXI will strive for further information disclosure through its environmental review and monitoring by encouraging the project sponsors through the Applicants while complying with the relevant laws and ordinances in the project country. (1) Upon completion of the screening of a project, NEXI discloses, as soon as possible, the project name, country, location, an outline of the project and sector of the project, and its category classification, as well as the reasons for the classification. (2) For A and B projects, NEXI publishes on its website the status of acquirement of the ESIA reports, etc. obtained from the Applicants for confirming environmental and social considerations and promptly makes the ESIA reports, etc. available on its website. Of the documents other than the ESIA reports, etc. obtained by NEXI from the Applicants for confirming the environmental and social considerations, NEXI publishes the status of obtaining those that are being disclosed to the public in the project country and make them available on the NEXI website promptly. (3) NEXI endeavors to disclose information prescribed in (1) and (2) above in a manner that allows enough time before decision-making on covering by NEXI. (4) After conclusion of an insurance contract, NEXI provides on its website the results of its environmental reviews of the projects in Categories A and B for public perusal. (5) After conclusion of an insurance contract, NEXI provides on its website the results of monitoring conducted by project sponsors regarding the projects in Categories A and B only to the extent that the information of the project is disclosed to public in the project country. 6

9 (6) NEXI pays due consideration to the commercial confidentiality of the Applicants, taking into account their competitive relationships, and encourages them to exclude such confidential information from any documents on environmental and social considerations submitted by them which may later be subjected to public disclosure. Any information that is excluded from public disclosure in the contract between NEXI and the Applicants may only be disclosed either with the agreement of the Applicants or in accordance with legal requirements. VII. Ensuring Compliance with the Guidelines NEXI endeavors to ensure appropriate implementation of the policies and procedures stated in these Guidelines and compliance with the Guidelines. In order to ensure its compliance with the Guidelines, NEXI accepts objections regarding its non-compliance with the Guidelines and takes the necessary action. Supplementary Provision These Guidelines shall come into force from April 1, Supplementary Provisions <Effective date of these Guidelines> This Revised Guidelines shall come into force from October 1, <Interim Measure> The original Guidelines shall apply to the projects for which insurance applications have been made before the effective date of these revised Guidelines. <Review of the Guidelines> The Guidelines will be reviewed in future when necessary, taking into account future review progress of the Common Approaches at OECD Working Party on Export Credits and Credit Guarantees (hereinafter referred to as Common Approaches ) or the results of comprehensive review based on the confirmation on the implementation status of the Guidelines. In reviewing the Guidelines, NEXI will seek the opinions of, among others, the Japanese Government, Japanese companies, experts, and NGOs, while maintaining transparency in the process. However, if it is deemed necessary to make the Guidelines consistent with the Common Approaches or if a change is deemed be a minor change, the Guidelines may be reviewed based on the premise that transparency will be ensured. Supplementary Provisions This Revised Guidelines shall come into force from April 1, Supplementary Provisions This Revised Guidelines shall come into force from December 4, Supplementary Provisions The revised Guidelines shall come into force from October 1, To projects regarding which Screening Forms have been received by NEXI before the enforcement date, prior procedures including the previous Guidelines shall apply. Supplementary Provisions The revised Guidelines shall come into force from April 1, To projects regarding which Screening Forms have been received by NEXI before the enforcement date, prior procedures including the previous Guidelines shall apply. 7

10 Exhibit 1 and Social Required of Covered Projects In principle, appropriate environmental and social considerations shall be undertaken, according to the nature of the project, based on the following: (1) Underlying Principles impacts that may be caused by a project must be assessed and examined from the earliest planning stage possible. Alternative proposals or mitigation measures to prevent or minimize such adverse impacts must be examined, and the findings of such examinations shall be incorporated into the project plan: Such examination must include analysis of environmental costs and benefits in as quantitative terms as possible, and be conducted in close harmony with economic, financial, institutional, social, and technical analyses of the project; The findings of such examination of environmental and social considerations, including alternative proposals and mitigation measures, must be recorded as independent documents or as parts of other documents. and Social Impact Assessment (ESIA) reports must be produced for projects in which particularly large adverse impacts are expected; and For projects that have particularly significant adverse impacts or are highly contentious, a committee of experts may be formed to seek their opinions as appropriate, in order to increase accountability. (2) Examination of Measures Multiple alternative proposals must be examined to prevent or minimize adverse impacts and to choose a better project option in terms of environmental and social considerations. In examination of measures, priority is to be given to the prevention of environmental impacts, and when this is not possible, minimizing and mitigating impacts must be considered next. Compensation measures must be examined only when impacts cannot be prevented by any of the aforementioned measures; and Appropriate follow-up plans and systems, such as monitoring plans and environmental management plans, must be prepared; and costs of implementing such plans and systems, and financial methods of budgeting to obtain funds for such costs must be determined. Plans for projects with particularly large potential adverse impacts must be accompanied by detailed environmental management plans. (3) Scope of Impacts to be Examined impacts to be investigated and examined include factors that impact on human health and safety as well as the natural environment through air, water, soil, waste, accidents, water usage, ecosystems, and biota: social concerns including respect for human rights, such as involuntary resettlement, indigenous peoples, cultural heritage, landscape, gender, children s rights, communicable diseases such as HIV/AIDS, working conditions (including occupational safety) and community health, safety, and security; and impacts that may lead to trans-boundary and global environmental problems. While air could include greenhouse gases (GHG), specific requirements for environmental and social considerations on this issue are to be made based on the Common Approaches; and In addition to the direct and immediate impacts of projects, derivative, secondary, and cumulative impacts and impacts of associated facilities are also to be examined and investigated to a reasonable extent. It is also desirable to consider the impact throughout the life cycle of the project. 8

11 (4) Compliance with Laws, Standards and Plans Projects must comply with laws and regulations, and standards relating to environmental and social considerations established by the governments governing the project site (including both national and local governments). They must also conform to policies and plans relating to environmental and social considerations established by the governments governing the project site; and Projects must, in principle, be undertaken outside protected areas that are specifically designated by laws or regulations of the government for the conservation of nature or cultural heritage (excluding projects whose primary objectives are to promote the protection or restoration of such designated areas). Projects shall not impose significant adverse impacts on such designated conservation areas. (5) Social Acceptability and Social Impacts Projects must be adequately coordinated so that the projects are accepted in a manner that is socially appropriate to the country and locality in which the project is planned. For projects with potentially large environmental impacts in particular, sufficient consultations with stakeholders, such as local residents, must be conducted via disclosure of information from an early stage when alternative proposals for the project plans may be examined. The outcomes of such consultations must be incorporated into the contents of the project plan; and Appropriate consideration must be given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities, all of whom are susceptible to various environmental and social impacts and who may have little access, within society, to decision-making processes. (6) Ecosystem and Biota Projects must not involve significant conversion or significant degradation of critical natural habitats including critical forests areas In case the project involves the significant conversion or degradation of natural habitats including natural forests, priority is to be given to the prevention of environmental impact. When this is not possible, appropriate mitigation measures must be established. Evaluation of the impact on natural habitats by the project and consideration for the offset measures should be based on expert opinion. Illegal logging of forests must be avoided. For the projects involving commercial harvest, the project proponents are encouraged to obtain certifications by forest certification systems as a way to ensure prevention of illegal logging. Illegal logging of forests must be avoided. For the projects involving commercial harvest, the project proponents are encouraged to obtain certifications by forest certification systems as a way to ensure prevention of illegal logging. (7) Involuntary Resettlement Involuntary resettlement and loss of means of livelihood are to be avoided where feasible, exploring all viable alternatives. When it is not feasible to avoid them even after such examination, effective measures to minimize impacts and compensate for losses must be agreed upon with the people to be affected; People to be resettled involuntarily and people whose means of livelihood will be hindered or lost must be sufficiently compensated and supported by the project proponents, etc. at an appropriate time. Prior compensation, at full replacement cost, must be provided, to the extent possible. The project proponents, etc. must make efforts to enable such affected people to improve their standard of living, income opportunities, and production levels, or at least to restore them to pre-project levels. Measures to achieve this purpose may include providing land and monetary compensation for losses (to cover land and property losses), 9

12 supporting the means for an alternative sustainable livelihood, and providing the expenses necessary for relocation and the re-establishment of a community at relocation sites; Appropriate participation by affected people and communities must be promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against loss of means of livelihood. In addition, grievance mechanisms must be established for the people affected and their communities; and For projects that will result in large-scale involuntary resettlement or large-scale loss of means of livelihood, resettlement action plans must be prepared and made available to the public. In preparing a resettlement action plan, consultations must be made with the affected people and communities based on sufficient information made available to them in advance. When consultations are held, explanations must be given in a form, manner, and language understandable to the affected people. It is desirable that the resettlement action plan include elements required under the standards of international financial institutions which NEXI benchmarks in its environmental reviews. (8) Indigenous Peoples Any adverse impacts a project may have on indigenous peoples are to be avoided where feasible, exploring all viable alternatives. When it is not feasible to avoid them even after such examination, effective measures to minimize impacts and compensate for their losses must be taken for indigenous peoples; When a project may have adverse impacts on indigenous peoples various rights in relation to land and resources, such rights must be respected in accordance with the spirit of the relevant international declarations and treaties, and free, prior, and informed consents must be obtained; and Measures for the affected indigenous peoples must be prepared as an indigenous peoples plan (which may constitute a part of other documents for environmental and social considerations) and made public in compliance with the relevant laws and regulations in the project country. In preparing the indigenous peoples plan, consultations must be made with the affected indigenous peoples based on sufficient information made available to them in advance. When consultations are held, it is desirable that explanations must be given in a form, manner, and language understandable to indigenous peoples. It is desirable that the indigenous peoples plan include the elements required under the standards of international financial institutions which NEXI benchmarks in its environmental reviews. (9) Monitoring and Follow-up It is desirable that, after a project begins, the project proponents monitor (i) whether any situations that were unforeseeable before the project begins have arisen and (ii) the implementation situation and effectiveness of the mitigation measures prepared in advance, and that they then take appropriate measures (together with a follow-up, hereinafter referred to as monitoring ) based on the results of such monitoring; In cases where sufficient monitoring is deemed essential for the achievement of appropriate environmental and social considerations such as the projects for which mitigation measures should be implemented while monitoring their effectiveness, project proponents must ensure that project plans include monitoring plans, and that such monitoring plans are feasible; It is desirable that project proponents make the results of monitoring processes available to project stakeholders; and When third parties point out, in concrete terms, that environmental and social considerations are not being fully undertaken, it is desirable that a forum for discussion and examination of countermeasures be established based on sufficient information disclosure and with the participation of stakeholders in the relevant project, and that an agreement be reached on procedures to be adopted with a view to resolving the problem. 10

13 Exhibit 2 ESIA Reports for A Projects The following conditions are met in principle: When assessment procedures already exist in host countries, and projects are subject to such procedures, borrowers and related parties must officially complete those procedures and obtain the approval of the government of the host country; ESIA reports (which may be referred to differently in different systems) must be written in the official language or a language widely used in the country where the project is to be implemented. When explaining projects to local residents, written materials must be provided in a language and form understandable to them; ESIA reports are required to be made available in the country where the project is to be implemented, including to the local residents. It is required that the ESIA reports be available at all times for perusal by project stakeholders such as local residents, and that copying be permitted; In preparing ESIA reports, consultation with stakeholders, such as local residents, must take place after sufficient information has been disclosed. Records, etc. of such consultations must be prepared; Consultations with relevant stakeholders, such as local residents, should take place if necessary throughout the preparation and implementation stages of a project. Having consultations is highly desirable, especially when the items to be considered in the ESIA are being selected (i.e., scoping), and when the draft report has been prepared; and It is desirable that ESIA reports cover the items stipulated in the Common Approaches. 11

14 Appendix 1 Information Required for Screening Process The following data shall be used in principle to conduct screening. When necessary, additional data may be required depending on the nature of the project and peripheral circumstances, etc. <s to be Listed> 1. Permits and Approvals Need for permits and approvals for Impact Assessment Status of acquisition of permits and approvals for EIA Date of issue of permits and approvals for EIA Names of organizations issuing permits and approvals for EIA Status of acquisition of other environmental permits and approvals 2. Project Details Location of project site Project Description Relevant sector Scale, etc. of project 3. Impacts Degree of environmental impacts Existence of sensitive areas Existence of sensitive characteristics Scale of sensitive characteristics 12

15 Appendix 2 Categories and s in Checklist The checklists include the following categories and items related to the environment. When using these checklists, the appropriate items should be checked based on the sector and nature of the project. <> <> 1. Permits and approvals, explanations EIA and environmental permits Explanations to the Public 2. Anti-pollution measures Air quality Water quality Waste Soil contamination Noise and vibration Subsidence Odor Sediment 3. Natural environment Protected areas Ecosystem and biota Hydrology Topography and geology Management of abandoned sites 4. Social environment Resettlement Living and livelihood Heritage Landscape Ethnic minorities and indigenous peoples Working conditions (including occupational safety) Community health, safety, and security 5. Other Impact during construction Accident prevention measures Monitoring 13

16 Appendix 3 s Requiring Monitoring s requiring monitoring shall be decided according to the sector and nature of the project, with reference to the following list of items. <s> 1. Permits and approvals, explanations Response to matters indicated by authorities 2. Anti-pollution measures Air quality : SO2, NO2, CO, O2, soot and dust, suspended particulate matter, coarse particulate, etc. Water quality : ph, SS (suspended solids), BOD (biochemical oxygen demand) / COD (chemical oxygen demand), DO (dissolved oxygen), total nitrogen, total phosphorus, heavy metals, hydrocarbons, phenols, cyanogen compounds, mineral oils, water temperature, etc. Waste Noise and vibration Odors 3. Natural environment Ecosystems : Impacts on valuable species, countermeasures, etc 4. Social environment NB: Resettlement Living and livelihood For air and water quality, specify whether you are monitoring emission levels or environmental levels. Also, it should be noted that the items requiring monitoring will differ depending on whether the impacts in question will occur during construction or during operation of the project. 14

17 << References >> (page) I. Screening Form 17 II. Checklists < List > Mining Oil and Gas Development Pipelines Iron and Steel Non-ferrous Metals Smelting and Refining Petrochemicals Petroleum Refining Paper and Pulp Chemical Manufacturing Cement Plants General Manufacturing Thermal Power Nuclear Power Hydro Power, Dams and Reservoirs Other Electric Generation Power Transmission and Distribution Lines Roads, Railways and Bridges Airports Ports and Harbors Water Supply Sewage and Wastewater Treatment Waste Management and Disposal River and Channel Projects Irrigation Projects Agriculture and Livestock Projects Forestry Projects Fishery Projects Other Infrastructure Projects 163 III. Monitoring Form 168 IV. Frequently Asked Questions (FAQ)

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19 I. Screening Form Name of Project: Name of Project Execution Organization: Name of Borrower: Please provide the name, department, job title, and contact details for the person who is responsible for filling out this form. Name: Department and title: Name of Company or Organization: Telephone number: Fax number: address: Date: Signature: Please provide the following information concerning the organization submitting this screening form. Name of Company or Organization: Name of a person in charge: Title: Telephone/Fax: (Note) 1. This Screening Form or the contents thereof may be made public. 2. When any description in this Screening Form has been found false or insufficient due to intent or negligence of the person who submitted this form, NEXI may refuse to pay part or all of the insurance claims or make them refund part or all of the insurance claims, or cancel the relevant insurance contract, based on the insurance contract. 17

20 Questions Q1. Please provide the address of the project site. Address of the project site: Q2. Please provide brief explanation of the project. Q3. Will NEXI insurance be applied to a new project or an executing project? In case of an executing project, please inform of strong claims by stakeholders such as local residents, as well as improvement guidance or cessation orders for construction work / operations, from environmental authorities. New Project Executing Project (with Claim etc.) Executing Project (without Claim etc.) Others (Please specify ) Q4. In case of this project, is it necessary to execute and Social Impact Assessment (ESIA) based on the laws or regulations of the country where the project is to be implemented? If necessary, please inform the progress of ESIA. Required (Completed) Required (Under execution or under planning) Not Required Others (Please specify ) Q5. In case that ESIA is already completed, please inform whether ESIA report is already approved based on the environmental and social assessment system of the country where the project is to be implemented or not. If ESIA report is already approved, please provide the date and name of authorities of the approval. Approved (without condition) Approved (conditional) Under approval process Others (Please specify ) Date of Approval: Name of Authorities: Q6. If environmental and social permit(s) other than ESIA is required, please provide the name of required permit(s). Have you obtained required permit(s)? Obtained Required, but not obtained yet Not required Others (Please specify ) Name(s) of required permit(s): Q7. Will the insurance be used for the undertaking that cannot specify the project at this stage (e.g. export or lease of machinery that has no relation with specific project, or Two Step Loan that cannot specify the project at the time of loan agreement)? (Yes / No) If you answered Yes, it is not necessary to reply to the following questions. If you answered No, please reply to the following questions. 18

21 Q8. Are there any environmentally sensitive area(s) shown below in and around project site(s)? (Yes / No) If you answered Yes, please select applicable items by marking, and reply to the following questions. If you answered No, please reply to the questions 9 and after. (1) National parks, nationally-designated protected areas (coastal areas, wetlands, areas for ethnic minorities or indigenous peoples and cultural heritage, etc. designated by national governments) (2) Forests with important ecological value (including primary forests and natural forests in tropical areas) (3) Habitats with important ecological value (including coral reefs, mangrove wetland and tidal flats) (4) Habitats of rare species requiring protection under domestic legislation, international treaties, etc. (5) Areas in danger of large-scale salt accumulation or soil erosion (6) Areas with a remarkable tendency towards desertification (7) Areas with unique archaeological, historical or cultural value (8) Areas inhabited by ethnic minorities, indigenous peoples or nomadic peoples with traditional ways of life (including areas which are used for cultural or spiritual purposes) and other areas with special social value Q9. Does the project involve following characteristics? (Yes / No) If you answered Yes, please describe the scale of applicable characteristics, and reply to the questions 10 and after. If you answered No, please reply to the questions 11 and after. (1) Involuntary resettlement and/or loss of means of livelihood (Number of affected people: ) (2) Pumping of groundwater (Scale: m3 /year) (3) Land reclamation, development and/or clearing (Scale: ha) (4) Deforestation (Scale: ha) Q10. Under the environmental and social impact assessment system of the country where the project is to be implemented, do the applicable characteristics from (1) (4) of the questions 9 and their scale serve as basis for executing an ESIA for the project? They do They do not Others (Please specify ) Q11. Will the value insured by NEXI in the export, loan or investment project be equal or less than 5% of the total project cost, or equal or less than SDR 10 million? (In the case of additional support for a past project, this shall be the accumulated total amount) (Yes / No) If you answered Yes, it is not necessary to reply to the following questions. If you answered No, please reply to the questions 12 and after. Q12. Does the project belong to either of the sectors that impact on the environment and society is deemed immaterial or is not anticipated under normal conditions (e.g. maintenance of the existing facilities, non-expansionary renovation project, and acquisition of rights and interests without additional capital investment)? (Yes / No) If you answered Yes, it is not necessary to reply to the following questions. If you answered No, please reply to the questions 13 and after. 19

22 Q13. Does the project belong to the following sectors? (Yes / No) If you answered Yes, please specify the sector by marking, and reply to the questions 14 and after. If you answered No, it is not necessary to reply to the following questions. (1) Mining (2) Oil and natural gas development (3) Pipelines (4) Iron and steel (projects that include large furnaces) (5) Non-ferrous metals smelting and refining (6) Petrochemicals (manufacture of raw materials; including complexes) (7) Petroleum refining (8) Oil, gas and chemical terminals (9) Paper and pulp (10) Cement plants (including a greenfield quarry) (11) Manufacturing and transport of toxic or poisonous substances regulated by international treaties, etc. (12) Thermal power (13) Nuclear power (14) Hydro power, dams and reservoirs (15) Power transmission and distribution lines involving large-scale involuntary resettlement, large-scale logging or submarine electrical cables (16) Roads, railways and bridges (17) Airports (18) Ports and harbors (19) Sewage and wastewater treatment having sensitive characteristics or located in sensitive areas or their vicinity (20) Waste management and disposal (21) Agriculture involving large-scale land clearing or irrigation (22) Forestry (23) Tourism (Construction of hotel, etc.) Q14. Please provide information on the scale of the project (project area, area of plants and buildings, production capacity, amounts of power generation, etc.) Further, pleased explain whether an execution of EISA is required on account of the large scale of the project in the country where the project is implemented. 20

23 II. Checklists No. of Checklist Other Infrastructure Projects Fishery Projects Forestry Projects Agriculture and Livestock Projects Irrigation Projects River and Channel Projects Waste Management and Disposal Sewage and Wastewater Treatment Water Supply Ports and Harbors Airports Roads, Railways and Bridges Power Transmission and Distribution Lines Other Electric Generation Hydro Power, Dams and Reservoirs Nuclear Power Thermal Power General Manufacturing Cement Plants Chemical Manufacturing Paper and Pulp Petroleum Refining Petrochemicals Non-ferrous Metals Smelting and Refining Iron and Steel Pipelines Oil and Natural Gas Development Mining Manufacturing Power Generation and Transmission Infrastructure Natural Resource Development s (1) ESIA and Permits 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (2) Explanations to the Public 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (1) Air Quality 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (2) Water Quality 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (3) Waste 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (4) Soil Contamination 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (5) Noise and Vibration 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (6) Subsidence 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (7) Odor 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (8) Sediment 〇 (1) Protected Areas 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (2) Ecosystem and Biota 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (3) Hydrology 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (4) Topography and Geology 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (5) Management of Abandoned Sites 〇 〇 〇 (1) Resettlement 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (2) Living and Livelihood 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (3) Heritage 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (4) Landscape 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 Ethnic Minorities and Indigenous Peoples (5) Working conditions (including occupational safety) (6) (1) Impact during construction 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (2) Accident Prevention Measures 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 (3) Monitoring 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 〇 Class 1. Permits & Approvals, Explanation 2. Anti-pollution Measures 3. Natural 4. Social 5. Other 21

24 Checklist: 1. Mining (1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social Antipollution Measures (1) Air Quality (2) Water Quality 1 Are any measures taken to minimize fugitive dust generated from mine workings and crushing plants? Does it comply with the host country s emission standards? 2 Do air pollutants other than fugitive dust comply with the host country s emission standards? 3 Do air pollutants emitted from the ancillary facilities, such as privately owned power plants comply with the host country s emission standards? 4 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 5 Are adequate measures taken to reduce GHG emissions from the project? 6 Does air quality within the working conditions comply with the host country s occupational health and safety standards? Are adequate worker protection measures, such as use of dust masks taken, if necessary? 1 Do pollutants, such as ph, SS, heavy metals contained in effluents from various sources, such as concentrators, mine drainage, stormwater runoff, waste rock disposal sites, and tailing impoundment sites comply with the host country s effluent standards? 2 Do effluents from the ancillary facilities, such as privately owned power plants comply with the host country s effluent standards? 3 Does the quality of sanitary wastewater from the buildings and housing complexes, such as accommodations and worker colonies comply with the host country s effluent standards?

25 Checklist: 1. Mining (2) Main Check s Confirmation of and Social (2) Water Quality 4 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 5 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? Antipollution Measures (3) Waste (4) Noise and Vibration (5) Subsidence 1 Are wastes containing hazardous substances, such as removed soils, waste rock, waste sand, sludge and tailings properly treated and disposed of in accordance with laws and regulations of the host country? 2 Are wastes (e.g. waste oil, waste reagents) generated by mine operations or wastes such as coal ash generated from the ancillary facilities, such as privately owned power plants properly treated and disposed of in accordance with laws and regulations of the host country? 3 Are adequate measures taken to prevent contamination of soil and groundwater by leachates from the waste disposal sites? 1 Do noise and vibrations generated from various sites, such as mine workings comply with the host country s standards? 2 Do noise and vibrations within working the environments comply with the host country s occupational health and safety standards? Are adequate protection measures, such as sound-proof barriers or ear plugs taken, if necessary? 1 Are considerations given to the possibility of a surface cave-in or subsidence associated with underground mining? Is there a possibility that the surface cave-in or subsidence will affect the property of inhabitants or cultural heritage sites? Are adequate measures, such as backfilling of the underground workings planned to deal with such a possibility? 2 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? 3. Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion?

26 Checklist: 1. Mining (3) 3. Natural (2) Ecosystem and Biota (3) Hydrology Main Check s 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 When diverting rivers and creeks with the development, are adequate protection measures taken to reduce the impacts on aquatic organisms? 7 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments, such as rivers? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 If the construction of pit and rubble deposition field causes adverse impacts on the flow of surface water and/or groundwater, are adequate measures taken to reduce them? Confirmation of and Social 24 (4) Management of Abandoned Sites 1 Are environmental protection and restoration plans for the abandoned sites (such as reclamation, reforestation, mine drainage treatment) after mine closure properly developed in accordance with the host country s laws and regulations? 2 Is a sustainable management framework for the abandoned sites established? 3 Are adequate financial provisions, such as a reserve fund secured to manage the abandoned sites? 4. Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people?

27 Checklist: 1. Mining (4) Main Check s Confirmation of and Social (1) Resettlement 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? Social (2) Living and Livelihood (3) Heritage 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Are impacts on the living conditions of inhabitants properly estimated and adequate measures planned for each phase of the mine s life-cycle (mine development, mine operation, mine closure, etc.)? 3 Are sufficient infrastructures (e.g. hospitals, schools, roads) available for project implementation? If existing infrastructure is insufficient, are plans developed to construct new infrastructures or improve existing infrastructures? 4 Is there a possibility that large vehicle traffic associated with the project will cause impacts on road traffic in the surrounding areas? Are adequate measures considered to reduce the impacts on traffic, if necessary? 5 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? (5) Ethnic Minorities and Indigenous Peoples 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained?

28 Checklist: 1. Mining (5) 4. Social (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security Main Check s 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? Confirmation of and Social Other (1) Impacts during Construction (2) Accident Prevention Measures (3) Monitoring 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? 2 Are adequate accident prevention measures (e.g. installation of prevention facilities and equipment, establishment of prevention management framework, etc.) taken for dangerous materials (e.g. explosives, fuels, floatation reagents)? 3 Are sufficient considerations given to the hazards associated with possible slope failures and erosion of soil storage stockpiles, waste rock dumps, and tailing impoundments when the sites were selected and the facilities were designed? Is there a possibility that hazards will affect the inhabitants living around the project site? 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities?

29 Checklist: 1. Mining (6) 5. Other (3) Monitoring Main Check s 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social 6. Notes (1) Reference to Checklists of Other Sectors 1 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. projects including construction of ports and harbors). 2 Where necessary, pertinent items described in the Forestry Projects checklist should also be checked (e.g. projects including large areas of deforestation). 3 Where necessary, pertinent items described in the Pipelines checklist should also be checked (e.g. projects including construction of pipelines). 4 Where necessary, pertinent items described in the Roads, Railways and Bridges checklist should also be checked (e.g. projects including construction of large-scale roads, railways and bridges). 5 Where necessary, pertinent items described in the Non-ferrous Metals Smelting and Refining checklist should also be checked (e.g. projects including construction of smelting works). 27 (2) Notes on Using Checklists 1 The impacts of the various phases of the project whole life cycle (mine development, mine operation, and mine closure, etc.) should be confirmed. 2 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, or global warming). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

30 Checklist: 2. Oil and Natural Gas Development(1) Main Check s Confirmation of and Social 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? Antipollution Measures (1) Air Quality (2) Water Quality 1 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), soot and dust emitted from the combustion facilities, processing / treatment facilities, and other ancillary facilities comply with the host country s emission standards? 2 Is there a possibility that air pollutants emitted from the flare system will adversely affect the surrounding environment? 3 Are adequate measures considered to reduce emissions and leakage of volatile organic compounds (VOCs)? 4 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 5 Are adequate measures taken to reduce GHG emissions from the project? 1 Do pollutants, such as ph, SS, BOD, oil and grease, phenols, organic compounds, sulfide, heavy metals contained in effluents from production facilities, processing / treatment facilities, drilling wastes, and related facilities comply with the host country s effluent standards? 2 Are drilling muds properly treated in accordance with the host country s standards? 3 Are adequate measures taken to prevent spills and discharges of crude oil and hazardous materials to the surrounding areas? 4 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 5 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards?

31 Checklist: 2. Oil and Natural Gas Development(2) Main Check s Confirmation of and Social (3) Waste 1 Are drilling wastes, including drilling muds, additives (polymers, oxygen scavengers, biocides, surfactants), lubricants, diesel oil, emulsifying agents, flocculating agents (bentonite), and weighting materials appropriately treated and disposed of in accordance with laws and regulations of the host country? 2 Are wastes and sludge from the processing / treatment facilities appropriately treated and disposed of in accordance with laws and regulation of the host country? 3 Are adequate measures taken to prevent contamination of soil and groundwater by leachates from the drilling waste ponds? 2. Antipollution Measures (4) Soil Contamination (5) Noise and Vibration (6) Subsidence 1 Has the soil of the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination by leaked materials, such as crude oil? (not applicable to offshore oil and gas development projects) 1 Do noise and vibrations from the drilling works, production and treatment facilities comply with the host country s standards? 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? 29 (7) Odor (1) Protected Areas 1 Are there any odor sources, such as hydrogen sulfide and mercaptans originating from crude oil (especially sour oil containing relatively high hydrogen sulfide)? Are adequate odor control measures taken? (not applicable to offshore oil and gas development projects) 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? 3. Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem?

32 Checklist: 2. Oil and Natural Gas Development(3) Main Check s Confirmation of and Social (3) Hydrology 1 In the case of onshore oil and gas development, is there a possibility that groundwater system changes due to alteration of topographic features and surface water system changes due to installation of structures will adversely affect surface water and groundwater flows? 2 In the case of offshore oil and gas development, is there a possibility that oceanographic condition changes due to installation of structures will adversely affect oceanographic conditions, such as waves, and tidal currents? Is the possibility of water quality degradation by the development studied? Are adequate water quality control measures taken, if necessary? 3. Natural (4) Topography and Geology 1 Is there a possibility that a large-scale alteration of topographic features and geological structures around the project site will occur as a result of the project? (not applicable to offshore projects) 2 Is the stability of the existing topographic conditions adequately considered for alteration of topographic features, such as earth cut and fill operations? (not applicable to offshore projects) 3 Is there a possibility that soil runoff will result from earth cut and fill areas? (not applicable to offshore projects) 4 Is there a possibility that soil runoff will result from waste soil disposal sites and borrow sites? (not applicable to offshore projects) 5 In the case of offshore oil and gas development projects, is there a possibility that pipeline landings and installation of related facilities at the shoreline will cause a large-scale alteration of shorelines? 30 (5) Management of Abandoned Sites 1 Are the environmental conservation measures taken in the well abandonment based on the laws of the host country? 4. Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to pre-project levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan?

33 Checklist: 2. Oil and Natural Gas Development(4) Main Check s Confirmation of and Social (1) Resettlement 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 In the case of onshore oil and gas development projects, is there a possibility that large vehicle traffic associated with the project will cause impacts on road traffic in the surrounding areas? Are measures considered to reduce the impacts on traffic, if necessary? 3 In the case of offshore oil and gas development projects, is there a possibility that offshore facilities will affect vessel traffic and the existing water area uses? 4 In the case of offshore oil and gas development projects, is there a possibility that transportation means, such as vessels and helicopters will cause sea and air space traffic congestion, and result in increase in traffic accidents? Are measures taken to reduce the impacts on local traffic, if necessary? 5 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? Social (3) Heritage (4) Landscape 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? (5) Ethnic Minorities and Indigenous Peoples 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? 1 Is the project proponent not violating any laws and regulations associated with the working conditions of (6) Working the host country which the project proponent should observe in the project? Conditions 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation (including of safety equipment which prevents industrial accidents, and management of hazardous materials? occupational safety)

34 Checklist: 2. Oil and Natural Gas Development(5) Main Check s Confirmation of and Social 4. Social 3 Are intangible measures being planned and implemented for individuals involved in the project, such as (6) Working the establishment of a safety and health program, and safety training (including traffic safety and public Conditions sanitation) for workers etc.? (including occupational safety) (7) Community Health, Safety and Security 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? (1) Impacts during Construction 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? Other (2) Accident Prevention Measures 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? 2 Are adequate accident prevention measures (e.g. installation of prevention facilities and equipment and establishment of prevention management framework) taken to prevent spills from crude oil and gas storage facilities, loading/unloading operations, transportation, and blow out during drilling? (3) Monitoring 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? 6. Notes (1) Reference to Checklists of Other Sectors 1 Where necessary, pertinent items described in the Pipelines checklist should also be checked (e.g. projects including construction of pipelines). 2 Where necessary, pertinent items described in the Forestry Projects checklist should also be checked (e.g. projects including large areas of deforestation).

35 Checklist: 2. Oil and Natural Gas Development(6) Main Check s Confirmation of and Social 6. Notes (1) Reference to Checklists of Other Sectors 3 Where necessary, pertinent items described in the Roads, Railways and Bridges checklist should also be checked (e.g. projects including construction of roads railways and bridges). 4 In the case of offshore oil and gas development projects, where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. projects including construction of ports and harbors). (2) Notes on Using Checklists 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, or global warming). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project. 33

36 Checklist: 3. Pipelines (1) Main Check s Confirmation of and Social (1) ESIA and Permits 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1. Permits and Approvals, Explanations (2) Explanations to the Public 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? 34 (1) Air Quality 1 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust emitted from the pumps and other facilities comply with the host country s emission standards? 2 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 2. Antipollution Measures (2) Water Quality (3) Waste (4) Soil Contamination 1 Are adequate measures taken to prevent spills and discharges of crude oil and hazardous materials to the surrounding water areas? 2 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 3 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? 1 Are sludges containing pollutants, such as oil and grease, and heavy metals generated by pipeline cleaning (pigging operations) properly treated and disposed of in accordance with the laws and regulations of the host country? 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination by leaked materials, such as crude oil?

37 35 Checklist: 3. Pipelines (2) 2. Antipollution Measures 3. Natural (5) Noise and Vibration (6) Sediment (1) Protected Areas (2) Ecosystem and Biota (3) Hydrology (4) Topography and Geology (5) Management of Abandoned Sites Main Check s 1 Do noise and vibrations from facility operations, such as pumping operations comply with the host country s standards? 2 Is there a possibility that noise from facility operations, such as pumping operations will affect humans and animals (wildlife and livestock)? 1 Are adequate measures taken not to contaminate the bottom sediment when pipelines are constructed in the seabed? 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Are adequate protection measures taken to prevent impacts, such as disruption of migration routes and habitat fragmentation of wildlife and livestock? 7 Is there a possibility that installation of pipelines will cause impacts, such as deforestation, poaching, desertification, and acidification of wetland areas? Is there a possibility that the ecosystems will be disturbed due to introduction of exotic species (non-native inhabitants in the region) and pests? Are adequate measures for preventing such impacts considered? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 In the case of offshore pipeline installation, is there a possibility that the installation of structures will adversely affect oceanographic conditions, such as waves, and tidal currents? Is the possibility of water quality degradation by the installation of structures investigated? Are adequate water quality control measures taken, if necessary? 1 In the case of onshore pipeline installation, is there a possibility that the installation of structures will cause a large-scale alteration of topographic features and geological structures around the project site? In the case of coastal pipeline installation, is there a possibility that the installation of structures will result in elimination of beaches? 1 Are the environmental conservation measures at the time of the pipeline closedown (removal) taken based on the law of the host country? Confirmation of and Social

38 Checklist: 3. Pipelines (3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? 1 Is there a possibility that existence of pipeline will cause impacts on traffic in the surrounding areas, and impede the local transportations? 2 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (2) Living and Livelihood (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? (4) Landscape 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If (5) Ethnic unavoidable, are efforts made to minimize the impacts and to compensate for their losses? Minorities and 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, Indigenous Peoples is such rights respected?

39 37 Checklist: 3. Pipelines (4) 4. Social (5) Ethnic Minorities and Indigenous Peoples (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security Main Check s 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? Confirmation of and Social 5. Other (1) Impacts during Construction (2) Accident Prevention Measures (3) Monitoring 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce the impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce the impacts? 1 Are adequate accident prevention plans and the mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of safety facilities and equipment, and performance of safety trainings for workers? Are adequate measures for emergency response to accidental events considered? 2 Are adequate accident prevention measures (e.g. installation of safety facilities and equipment, and establishment of safety management framework) taken to prevent spills from crude oil and gas storage facilities, loading/unloading operations, transportation, and blow out during drilling? 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate?

40 Checklist: 3. Pipelines (5) 5. Other (3) Monitoring Main Check s 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social 6. Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Forestry Projects checklist should also be checked (e.g. projects including large areas of deforestation). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of ozone layer, global warming). 38 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

41 Checklist: 4. Iron and Steel(1) Main Check s Confirmation of and Social (1) ESIA and Permits 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1. Permits and Approvals, Explanations (2) Explanations to the Public 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? 39 (1) Air Quality 1 Are adequate measures taken to control fugitive dust from the coal piles and raw materials yards? 2 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), soot and dust, and fluorine emitted from the production processes, such as sintering, coke furnaces, blast furnaces, electric furnaces, revolving furnaces, casting, rolling, pickling, and plating comply with the host country s emission standards? 3 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 4 Are adequate measures taken to reduce GHG emissions from the project? 2. Antipollution Measures (2) Water Quality 1 Do the following pollutants contained in effluents from the production processes comply with the host country s effluent standards? - Coke furnace: SS, cyanide, phenols, etc. - Blast furnace, revolving furnace: SS, etc. - Casting, rolling: SS, oil and grease, etc. - Pickling, plating: SS, heavy metals (Cd, Cr, Pb, Hg, Zn, etc.), oil and grease, fluorine, cyanide, ph, etc. 2 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 3 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards?

42 Checklist: 4. Iron and Steel(2) Main Check s Confirmation of and Social (3) Waste 1 Are wastes, such as blast furnace slag, revolving furnace slag, collected dust, and sludges properly treated and disposed of in accordance with the laws and regulations of host country? 2 Are wastes, such as waste sand (when sand molding is used), slags, collected dust, sludge from wastewater treatment plants, waste oil, waste chemical agents, and waste fire protection linings properly treated and disposed of in accordance with the laws and regulations of host country? 3 Are sludges (containing heavy metals and hazardous organic compounds) from the plating process properly treated and disposed of in accordance with the laws and regulations of host country? 4 Are adequate measures taken to prevent contamination of soil and groundwater by leachates from the waste disposal sites? 2. Antipollution Measures (4) Soil Contamination (5) Noise and Vibration 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination by leaked materials, such as chemicals used? 1 Do noise and vibrations from the operation comply with the host country s standards? 2 Is there a possibility that noise generated by large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts? 40 (6) Subsidence (7) Odor 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? 1 Are there any odor sources? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? 3. Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.?

43 Checklist: 4. Iron and Steel(3) 3. Natural (2) Ecosystem and Biota Main Check s 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? Confirmation of and Social Social (3) Topography and Geology (1) Resettlement (2) Living and Livelihood 1 Is there a possibility that the project will cause a large-scale alteration of topographic features and geological structures around the project site? 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts on traffic in the surrounding areas, impede the local transportations, and cause risks to pedestrians?

44 42 Checklist: 4. Iron and Steel(4) 4. Social 5. Other (2) Living and Livelihood (3) Heritage (4) Landscape (5) Ethnic Minorities and Indigenous Peoples (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security (1) Impacts during Construction Main Check s 3 Is there a possibility that the amount of water used (e.g. surface water, groundwater) by the project will adversely affect the existing water uses and water area uses? 4 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public 1 Is i there i )f a possibility k that? diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce the impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce the impacts? Confirmation of and Social

45 Checklist: 4. Iron and Steel(5) Main Check s Confirmation of and Social (2) Accident Prevention Measures 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of safety facilities and equipment, and performance of safety trainings for workers? Are adequate measures for emergency response to accidental events considered? 2 Are adequate accident prevention measures (e.g. installation of safety facilities and equipment, and establishment of safety management framework) taken during storages, generations, and transportations of hazardous and dangerous materials? Other 6. Notes (3) Monitoring (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? 1 Where necessary, pertinent items described in the Mining checklist should also be checked (e.g. projects including mine development). 2 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. projects including construction of ports and harbors). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

46 Checklist: 5. Non-Ferrous Metals Smelting and Refining(1) Main Check s Confirmation of and Social (1) ESIA and Permits 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country's government? 1. Permits and Approvals, Explanations (2) Explanations to the Public 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? 44 (1) Air Quality 1 Do air pollutants, such as soot and dust (containing heavy metals, such as Cu, Fe, As, Cd, Pb, Hg, Zn), and sulfur oxides (SOx) emitted from the nonferrous smelting processes, including copper, lead and zinc, and the other ancillary facilities comply with the host country's emission standards? 2 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country's ambient air quality standards? 3 Are adequate measures taken to reduce GHG emissions from the project? 2. Antipollution Measures (2) Water Quality 1 Do pollutants, such as SS, heavy metals (Cu, Pb, Cd, Zn, As, Hg), ph contained in effluents from the smelting processes and other ancillary facilities comply with the host country's effluent standards? 2 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 3Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country's ambient water quality standards? (3) Waste 1 Are wastes, such as slag and sludge generated from copper and nickel smelting properly treated and disposed of in accordance with the laws and regulations of the host country? 2 Is red mud (an alkaline waste containing oxides of Al, Si, Fe, Ti, Na, Ca and others) generated from alumina plant properly treated and disposed of in accordance with the laws and regulations of the host country?

47 Checklist: 5. Non-Ferrous Metals Smelting and Refining(2) Main Check s Confirmation of and Social (3) Waste 3 Are wastes, such as spent cathodes, dross, and fluxing slag generated from aluminum smelting processes properly treated and disposed of in accordance with the laws and regulations of the host country? 4 Are adequate measures taken to prevent contamination of soil and groundwater by leachates from the waste disposal sites? 2. Antipollution Measures (4) Soil Contamination (5) Noise and Vibration 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination by leaked materials, such as chemicals used? 1 Do noise and vibrations from the project operation comply with the host country's standards? 2 Is there a possibility that noise generated by large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts? 45 (6) Subsidence (7) Odor (1) Protected Areas 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? 1 Are there any odor sources? Are adequate odor control measures taken? 1 Is the project site located in protected areas designated by the host country's laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? 3. Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms?

48 Checklist: 5. Non-Ferrous Metals Smelting and Refining(3) Main Check s Confirmation of and Social Natural 4. Social (2) Ecosystem and Biota (3) Topography and Geology (1) Resettlement (2) Living and Livelihood 7 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that the installation of structures will cause a large-scale alteration of topographic features and geological structures around the project site? 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts on traffic in the surrounding areas and impede the movement of inhabitants, and cause risks to pedestrians? 3 Is there a possibility that the amount of water used (e.g. surface water, groundwater) by the project will adversely affect the existing water uses and water area uses? 4 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples?

49 Checklist: 5. Non-Ferrous Metals Smelting and Refining(4) Main Check s Confirmation of and Social (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country's laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? 4. Social (5) Ethnic Minorities and Indigenous Peoples 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? 47 (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts?

50 Checklist: 5. Non-Ferrous Metals Smelting and Refining(5) Main Check s Confirmation of and Social (2) Accident Prevention Measures 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? 2 Are adequate accident prevention measures (e.g. installation of prevention facilities and equipment and establishment of prevention management framework) taken for storage, loading/unloading, and transportation of hazardous and dangerous materials? 5. Other (3) Monitoring 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Mining checklist should also be checked (e.g. project including mine development). 2 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. project including construction of ports and harbor facilities). 3 Where necessary, pertinent items described in the Thermal Power checklist should also be checked (e.g. project including construction of large-scale power plants used for smelting plants, such as aluminum smelters). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

51 49 Checklist: 6. Petrochemicals (1) 1. Permits and Approvals, Explanations 2. Antipollution Measures (1) ESIA and Permits (2) Explanations to the Public (1) Air Quality (2) Water Quality (3) Waste Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country's government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? 1 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), soot and dust, and hydrocarbons emitted from the various process facilities, such as furnaces and reactors comply with the host country's emission standards? 2 Is there a possibility that air pollutants emitted from the flare system will adversely affect the surrounding environment? 3 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country's ambient air quality standards? 4 Are adequate measures taken to reduce GHG emissions from the project? 1 Do effluents (containing BOD, COD, SS, oil and grease, Cd, Cr6+, Cu, sulfides, nitrogen, ph, and other chemicals that depend on the specific process configuration) from various processes comply with the host country's effluent standards? 2 Are adequate measures taken to prevent contamination of surface water, groundwater and soil by the effluents from storage areas, including raw materials, chemicals, intermediate products, final products, and wastes? 3 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 4Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country's ambient water quality standards? 1 Are wastes, such as spent catalysts, collected dust, liquid wastes, and sludge properly stabilized, treated, and disposed of in accordance with the laws and regulations of the host country? Confirmation of and Social

52 Checklist: 6. Petrochemicals (2) Main Check s Confirmation of and Social (4) Soil Contamination 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination by leaked materials, such as raw materials, products and chemicals used? 2. Antipollution Measures (5) Noise and Vibration (6) Subsidence 1 Do noise and vibrations from the project operation comply with the host country's standards? 2 Is there a possibility that noise generated by large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts? 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? Natural 4. Social (7) Odor (1) Protected Areas (2) Ecosystem and Biota (3) Topography and Geology (1) Resettlement 1 Are there any odor sources? Are adequate odor control measures taken? 1 Is the project site located in protected areas designated by the host country's laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that the installation of structures will cause a large-scale alteration of topographic features and geological structures around the project site? 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible?

53 Checklist: 6. Petrochemicals (3) Main Check s Confirmation of and Social (1) Resettlement 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? Social (2) Living and Livelihood (3) Heritage (4) Landscape 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts on traffic in the surrounding areas and impede the movement of inhabitants, and cause risks to pedestrians? 3 Is there a possibility that the amount of water used (e.g. surface water, groundwater) by the project will adversely affect the existing water uses and water area uses? 4 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country's laws? 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? (5) Ethnic Minorities and Indigenous Peoples 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected?

54 Checklist: 6. Petrochemicals (4) (5) Ethnic Minorities and Indigenous Peoples Main Check s 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security (1) Impacts during Construction 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 5. Other (2) Accident Prevention Measures 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? 2 Are adequate accident prevention measures (e.g. installation of prevention facilities and equipment and establishment of prevention management framework) taken for storage, loading/unloading, and transportation of hazardous and dangerous materials?

55 Checklist: 6. Petrochemicals (5) 5. Other (3) Monitoring Main Check s 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social 6. Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. project including construction of ports and harbor facilities). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 53 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project.

56 Checklist: 7. Petroleum Refining(1) Main Check s Confirmation of and Social Permits and Approvals, Explanations 2. Antipollution Measures (1) ESIA and Permits (2) Explanations to the Public (1) Air Quality (2) Water Quality 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? 1 Do air pollutants, such as soot and dust, heavy metals (such as Ni and V), sulfur oxides (SOx), nitrogen oxides (NOx), and hydrogen sulfide emitted from various sources, such as boilers, furnaces, catalytic converters, coking units (thermal cracking units for residual oils), and other ancillary facilities comply with the host country's emission standards? 2 Is there a possibility that air pollutants emitted from the flare system will adversely affect the surrounding environment? 3 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 4 Are adequate measures taken to reduce GHG emissions from the project? 1 Do pollutants, such as BOD, COD, oil and grease, phenols, benzene, and heavy metals contained in effluents (including cooling water) from various process units and other ancillary facilities comply with the host country s effluent standards? 2 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 3 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? (3) Waste 1 Are wastes, such as organic compounds and hazardous wastes containing heavy metals (such as spent catalysts, collected dust, liquid wastes, and sludges) from various process units properly stabilized, treated and disposed of in accordance with the laws and regulations of the host country? Are non-hazardous wastes also properly treated and disposed of in accordance with the laws and regulations of the host country? 2 Are adequate measures taken to prevent contamination of soil and groundwater by leachates from the waste disposal sites?

57 Checklist: 7. Petroleum Refining(2) Main Check s Confirmation of and Social 2. Antipollution Measures (4) Soil Contamination (5) Noise and Vibration (6) Subsidence (7) Odor 1 Has the soil in the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination by leaked materials, such as crued oil, products, and chemical agents? 1 Do noise and vibrations from the operation comply with the host country s standards? 2 Is there a possibility that noise generated by large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts? 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? 1 Are there any odor sources, such as hydrogen sulfide and mercaptans originating from crude oil (especially sour oil containing relatively high levels of hydrogen sulfide)? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? (3) Topography and Geology 1 Is there a possibility that the installation of structures will cause a large-scale alteration of topographic features and geological structures around the project site? 4. Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods?

58 Checklist: 7. Petroleum Refining(3) Main Check s Confirmation of and Social Social (1) Resettlement (2) Living and Livelihood (3) Heritage 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to pre-project levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts on traffic in the surrounding areas and impede the movement of inhabitants, and cause risks to pedestrians? 3 Is there a possibility that the amount of water used (e.g. surface water, groundwater) by the project will adversely affect the existing water uses and water area uses? 4 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape (5) Ethnic Minorities and Indigenous Peoples 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses?

59 Checklist: 7. Petroleum Refining(4) Main Check s Confirmation of and Social (5) Ethnic Minorities and Indigenous Peoples 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? 4. Social 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? (6) Working 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation Conditions of safety equipment which prevents industrial accidents, and management of hazardous materials? (including 3 Are intangible measures being planned and implemented for individuals involved in the project, such as occupational safety) the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 57 (7) Community Health, Safety and Security 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? (1) Impacts during Construction 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 5. Other (2) Accident Prevention Measures 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? 2 Are adequate accident prevention measures (e.g. installation of prevention facilities and equipment and establishment of prevention management framework) taken for storage, loading/unloading, and transportation of hazardous and dangerous materials?

60 Checklist: 7. Petroleum Refining(5) Main Check s Confirmation of and Social 5. Other (3) Monitoring 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? (1) Reference to Checklists of Other Sectors 1 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. projects including construction of ports and harbor facilities) Notes (2) Notes on Using Checklists 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

61 Checklist: 8. Paper and Pulp(1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social Antipollution Measures (1) Air Quality (2) Water Quality (3) Waste 1 Is fugitive chip dust generated from chip handling and stacking operations prevented by measures, such as net curtains? 2 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx) and soot and dust emitted from various sources, such as privately owned power plants, black liquor oxidation process, bleaching process, and other ancillary facilities comply with the host country s emission standards? 3 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 4 Are adequate measures taken to reduce GHG emissions from the project? 1 Do pollutants, such as BOD, COD, SS, phosphorus, and nitrogen contained in effluents from raw material preparation process, pulp digesting process, and paper process comply with the host country s effluent standards? 2 Are the bleaching chemicals, such as bleaching powder, chlorine, hydrogen peroxide, chlorite soda, and sulfite soda properly treated in accordance with the host country s standards? 3 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 4 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? 1 Are wastes, such as wastewater treatment sludges properly treated and disposed of in accordance with the laws and regulations of the host country?

62 Checklist: 8. Paper and Pulp(2) Main Check s Confirmation of and Social (4) Soil Contamination 1 Has the soil in the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination by leaked materials, such as raw materials and chemical agents? 2. Antipollution Measures (5) Noise and Vibration (6) Subsidence 1 Do noise and vibrations from the operation comply with the host country s standards? 2 Is there a possibility that noise generated by large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts? 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? (7) Odor 1 Are there any odor sources? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Natural (2) Ecosystem and Biota (3) Topography and Geology 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 Is there a possibility that the procurement of materials, such as wood chips as raw material will result in the destruction of tropical forest? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that the installation of structures will cause a large-scale alteration of topographic features and geological structures around the project site?

63 Checklist: 8. Paper and Pulp(3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts on traffic in the surrounding areas and impede the movement of inhabitants, and cause risks to pedestrians? 3 Is there a possibility that the amount of water used (e.g. surface water, groundwater) by the project will adversely affect the existing water uses and water area uses? 4 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

64 Checklist: 8. Paper and Pulp(4) (5) Ethnic Minorities and Indigenous Peoples Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? (7) Community Health, Safety and Security 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered?

65 Checklist: 8. Paper and Pulp(5) Main Check s Confirmation of and Social (2) Accident Prevention Measures 2 Are adequate accident prevention measures (e.g. installation of prevention facilities and equipment and establishment of prevention management framework) taken for storage, loading/unloading, and transportation of hazardous and dangerous materials? 5. Other (3) Monitoring 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. projects including construction of ports and harbor facilities). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

66 Checklist: 9. Chemical Manufacturing(1) Main Check s Confirmation of and Social (1) ESIA and Permits 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1. Permits and Approvals, Explanations (2) Explanations to the Public 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? 64 (1) Air Quality 1 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust emitted from the project comply with the host country s emission standards? 2 Are adequate measures taken to prevent air pollution by the leakage of hazardous chemical substances? 3 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 4 Are adequate measures taken to reduce GHG emissions from the project? 2. Antipollution Measures (2) Water Quality (3) Waste 1 Do effluents (containing BOD, COD, SS, oil and grease, ph, and other chemicals that depend on the specific process configuration) from various processes comply with the host country s effluent standards? 2 Are adequate measures taken to prevent contamination of surface water, groundwater and soil by the effluents from storage areas, including raw materials, chemicals, intermediate products, final products, and wastes? 3 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 4 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? 1 Are hazardous wastes generated from various facilities properly stabilized, treated, and disposed of in accordance with the laws and regulations of the host country? Are non-hazardous wastes also properly treated and disposed of in accordance with the laws and regulations of the host country?

67 Checklist: 9. Chemical Manufacturing(2) Main Check s Confirmation of and Social (3) Waste 2 Are adequate measures taken to prevent contamination of soil and groundwater by leachates from the waste storage/disposal sites? (4) Soil Contamination 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination by leaked materials, such as raw materials and chemicals used? 2. Antipollution Measures (5) Noise and Vibration 1 Do noise and vibrations from the operation comply with the host country s standards? 2 Is there a possibility that noise generated by large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts? (6) Subsidence 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? (7) Odor 1 Are there any odor sources? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Natural (2) Ecosystem and Biota (3) Topography and Geology 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that the installation of structures will cause a large-scale alteration of topographic features and geological structures around the project site?

68 Checklist: 9. Chemical Manufacturing(3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts on traffic in the surrounding areas and impede the movement of inhabitants, and cause risks to pedestrians? 3 Is there a possibility that the amount of water used (e.g. surface water, groundwater) by the project will adversely affect the existing water uses and water area uses? 4 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? (4) Landscape

69 Checklist: 9. Chemical Manufacturing(4) (5) Ethnic Minorities and Indigenous Peoples Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? (7) Community Health, Safety and Security 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered?

70 Checklist: 9. Chemical Manufacturing(5) Main Check s Confirmation of and Social (2) Accident Prevention Measures 2 Are adequate accident prevention measures (e.g. installation of prevention facilities and equipment and establishment of prevention management framework) taken for storage, loading/unloading, and transportation of hazardous and dangerous materials? 5. Other (3) Monitoring 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 For petrochemical manufacturing projects, the Petrochemicals checklist should be used. 2 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. projects including construction of ports and harbor facilities). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 2 The chemicals used in chemical manufacturing differ depending on the specific process configuration. It should be confirmed that adequate environmental protection measures, including wastewater treatment for each process are implemented. 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

71 Checklist: 10. Cement Plants (1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social Antipollution Measures (1) Air Quality 1 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), soot, dust and heavy metals (including lead, cadmium, mercury, etc.), emitted from facilities including the kiln comply with the host country s emission standards? 2 Does particulate matter emitted from clinker coolers, mills, quarry sites, crushing plants, etc. comply with the host country's emission standards? 3 Is there a possibility that scattering coal dust from coal storage sites and coal conveyance facilities cause air pollution? Are adequate measures taken to prevent such air pollution. 4 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 5 Are adequate measures taken to reduce GHG emissions from the project? 6 Does air quality in the working conditions comply with the host country's occupational health and safety standards? Are adequate worker protection measures, such as wearing dust masks taken, if necessary? (2) Water Quality 1 Do effluents (SS, ph, etc.) from production facilities, quarry sites, etc. comply with the host country s effluent standards? 2 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 3 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards?

72 Checklist: 10. Cement Plants (2) Main Check s Confirmation of and Social (3) Waste 1 Are wastes generated from clinker production process, cement kiln dust, etc. properly treated and disposed of in accordance with the laws and regulations of the host country? 2 Are adequate measures taken to prevent contamination of soil and groundwater by leachates from the waste storage/disposal sites? 3 Are wastes such as removed soils and waste rock properly treated and disposed of in accordance with the host country's laws and regulations? (4) Soil Contamination 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination by leaked materials, such as raw materials and products? 2. Antipollution Measures (5) Noise and Vibration 1 Do noise and vibrations generated from the plant and quarry operation comply with the host country s standards? 2 Is there a possibility that noise generated by large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts? 3 Do noise and vibrations within working the environments comply with the host country s occupational health and safety standards? Are adequate protection measures, such as sound-proof barriers or ear plugs taken, if necessary? 70 (6) Subsidence (7) Odor 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? 1 Are there any odor sources? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? 3. Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms?

73 Checklist: 10. Cement Plants (3) 3. Natural (2) Ecosystem and Biota (3) Topography and Geology (4) Management of Abandoned Sites Main Check s 7 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that the project will cause a large-scale alteration of topographic features and geological structures around the project site? 1 Are environmental protection and restoration plans for the abandoned sites (such as reclamation and reforestation) after quarry sites closure properly developed in accordance with the host country s laws and regulations? 2 Is a sustainable management framework for the abandoned quarry site established? 3 Are adequate financial provisions, such as a reserve fund secured to manage the abandoned quarry sites? Confirmation of and Social Social (1) Resettlement (2) Living and Livelihood 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts on traffic in the surrounding areas and impede the movement of inhabitants, and cause risks to pedestrians?

74 Checklist: 10. Cement Plants (4) Main Check s Confirmation of and Social (2) Living and Livelihood 3 Is there a possibility that the amount of water used (e.g. surface water, groundwater) by the project will adversely affect the existing water uses and water area uses? 4 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? Social (3) Heritage (4) Landscape (5) Ethnic Minorities and Indigenous Peoples 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? 5. Other (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security (1) Impacts during Construction 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts?

75 Checklist: 10. Cement Plants (5) Main Check s Confirmation of and Social (1) Impacts during Construction 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? Other (2) Accident Prevention Measures (3) Monitoring (1) Reference to Checklists of Other Sectors 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? 2 Are adequate accident prevention measures (e.g. installations of prevention facilities and equipment and establishment of prevention management framework) taken for storage, loading/unloading, and transportation of hazardous and dangerous materials? 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? 1 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. projects including construction of ports and harbors). 2 Where necessary, pertinent items described in the Power Generation checklist should also be checked (e.g. projects including construction of own power plant). 6. Notes (2) Notes on Using Checklists 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 2 Pay full consideration to the impacts when using waste-derived raw materials (blast furnace slag, coal ash, sludge, etc.) and fuel (spent solvents, waste oil, waste tires, waste plastic, organic chemistry waste, etc.). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

76 74 Checklist: 11. General Manufacturing(1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public (1) Air Quality Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? 1 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust emitted from the project comply with the host country s emission standards? 2 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 3 Are adequate measures taken to reduce GHG emissions from the project? Confirmation of and Social 2. Antipollution Measures (2) Water Quality (3) Waste (4) Soil Contamination 1 Do effluents (containing BOD, COD, SS and other chemicals) comply with the host country s effluent standards? 2 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 3 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? 1 Are wastes (hazardous wastes and other industrial wastes) generated from various facilities properly treated and disposed of in accordance with the laws and regulations of the host country? 2 Are adequate measures taken to prevent contamination of soil and groundwater by leachates from the waste storage/disposal sites? 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination by leaked materials, such as raw materials, products and chemicals used?

77 Checklist: 11. General Manufacturing(2) Main Check s Confirmation of and Social 2. Antipollution Measures (5) Noise and Vibration (6) Subsidence 1 Do noise and vibrations from the operation comply with the host country s standards? 2 Is there a possibility that noise generated by large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts? 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? (7) Odor 1 Are there any odor sources? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Natural (2) Ecosystem and Biota (3) Topography and Geology 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that the installation of structures will cause a large-scale alteration of topographic features and geological structures around the project site? 4. Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible?

78 Checklist: 11. General Manufacturing(3) Main Check s Confirmation of and Social (1) Resettlement 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? Social (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts on traffic in the surrounding areas and impede the movement of inhabitants, and cause risks to pedestrians? 3 Is there a possibility that the amount of water used (e.g. surface water, groundwater) by the project will adversely affect the existing water uses and water area uses? 4 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If (5) Ethnic unavoidable, are efforts made to minimize the impacts and to compensate for their losses? Minorities and 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, Indigenous Peoples is such rights respected?

79 Checklist: 11. General Manufacturing(4) (5) Ethnic Minorities and Indigenous Peoples Main Check s 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? (1) Impacts during Construction 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 5. Other (2) Accident Prevention Measures 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? 2 Are adequate accident prevention measures (e.g. installation of prevention facilities and equipment and establishment of prevention management framework) taken for storage, loading/unloading, and transportation of hazardous and dangerous materials?

80 Checklist: 11. General Manufacturing(5) 5. Other (3) Monitoring Main Check s 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. projects including construction of ports and harbor facilities). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 2 When special contaminants are generated by the site-specific production process, particular attention should be paid to the impacts that may be caused by the pollutants. For example, chromium and sulfide for tanning and leather finishing; heavy metals such as cadmium for glass manufacturing; and organic solvents for electronics board manufacturing should be expected as contaminants from these specific processes. 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

81 Checklist: 12. Thermal Power (1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social 79 (1) Air Quality 1 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust emitted by the power plant operations comply with the host country s emission standards? 2 Are adequate measures taken to prevent air pollution by coal dust scattering from coal storage and coal transport facilities, dust from the coal ash disposal sites, in the case of coal-fired power plants? 3 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 4 Are adequate measures taken to reduce GHG emissions from the project? 2. Antipollution Measures (2) Water Quality (3) Waste 1 Do effluents including thermal effluents from the power plant comply with the host country's effluent standards? 2 In the case of coal-fired power plants, do leachates from coal piles and coal ash disposal sites comply with the host country's effluent standards? 3 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 4 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? 1 Are wastes, (such as waste oil, and waste chemical agents), coal ash, and by-product gypsum from flue gas desulfurization generated by the power plant operations properly treated and disposed of in accordance with the laws and regulations of the host country?

82 Checklist: 12. Thermal Power (2) Main Check s Confirmation of and Social (4) Soil Contamination 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination? 2. Antipollution Measures (5) Noise and Vibration (6) Subsidence 1 Do noise and vibrations from the operation comply with the country s standards? 2 Is there a possibility that noise generated by large vehicle traffic for transportation of materials, such as raw materials and products will cause impacts? 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? (7) Odor 1 Are there any odor sources? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 Is there a possibility that discharge of thermal effluents, intake of a large volume of cooling water or discharge of leachateswill adversely affect the ecosystem of surrounding water areas? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? (3) Topography and Geology 1 Is there a possibility that the installation of structures will cause a large-scale alteration of topographic features and geological structures in and around the project site?

83 Checklist: 12. Thermal Power (3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Are sufficient infrastructures (e.g. hospitals, schools, roads) available for project implementation? If existing infrastructure is insufficient, are plans developed to construct new infrastructures or improve existing infrastructures? 3 Is there a possibility that large vehicle traffic associated with the project will cause impacts on road traffic in the surrounding areas? Are adequate measures considered to reduce the impacts on traffic, if necessary? 4 Is there a possibility that the amount of water used (including surface water, groundwater) and discharge of thermal effluents by the project will adversely affect existing water uses and uses of water areas (especially fishing)? 5 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples?

84 Checklist: 12. Thermal Power (4) Main Check s Confirmation of and Social (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? Social (4) Landscape (5) Ethnic Minorities and Indigenous Peoples (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts?

85 Checklist: 12. Thermal Power (5) Main Check s Confirmation of and Social (2) Accident Prevention Measures 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? (2) Accident Prevention Measures 2 Are adequate accident prevention measures (e.g. installation of prevention facilities and equipment and establishment of prevention management framework) taken for storage, loading/unloading, and transportation of hazardous and dangerous materials? 5. Other (3) Monitoring 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? 83 (1) Reference to Checklists of Other Sectors 1 Where necessary, pertinent items described in the Power Transmission and Distribution Lines checklist should also be checked (e.g. projects including installation of electric transmission lines and/or electric distribution facilities). 2 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. projects including construction of port and harbor facilities). 6. Notes (2) Notes on Using Checklists 1 In the case of coal-fired power plants, the following items should be confirmed: Are coal quality standards established? Are the electric generation facilities planned by considering coal quality? 2 If necessary, the impacts to transboundary or global issues should be confirmed (including the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

86 Checklist: 13. Nuclear Power (1) Main Check s Confirmation of and Social (1) ESIA and Permits 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1. Permits and Approvals, Explanations (2) Explanations to the Public 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? 84 (1) Air Quality 1 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust emitted by power plant operations comply with the host country emission standards? 2 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country ambient air quality standards? 2. Antipollution Measures (2) Water Quality (3) Waste (4) Soil Contamination (5) Noise and Vibration 1 Do effluents including thermal effluents from the power plant comply with the host country effluent standards? 2 Does the quality of sanitary wastewater and stormwater from complex and rainwater drainage comply with the host country effluent standards? 3 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country ambient water quality standards? 1 Are wastes generated by the power plant operations properly treated and disposed of in accordance with the laws and regulations of the host country? 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination? 1 Do noise and vibrations from the operation comply with the country s standards?

87 Checklist: 13. Nuclear Power (2) Main Check s Confirmation of and Social 2. Antipollution Measures (6) Subsidence (7) Odor 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? 1 Are there any odor sources? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 Is there a possibility that discharge of thermal effluents, intake of a large volume of cooling water or discharge of leachateswill adversely affect the ecosystem of surrounding water areas? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? (3) Topography and Geology 1 Is there a possibility that the installation of structures will cause a large-scale alteration of topographic features and geological structures in and around the project site? 4. Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to pre-project levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities?

88 Checklist: 13. Nuclear Power (3) Main Check s Confirmation of and Social (1) Resettlement 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? Social (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Are sufficient infrastructures (e.g. hospitals, schools, roads) available for project implementation? If existing infrastructure is insufficient, are plans developed to construct new infrastructures or improve existing infrastructures? 3 Is there a possibility that large vehicle traffic associated with the project will cause impacts on road traffic in the surrounding areas? Are adequate measures considered to reduce the impacts on traffic, if necessary? 4 Is there a possibility that the amount of water used (including surface water, groundwater) and discharge of thermal effluents by the project will adversely affect existing water uses and uses of water areas (especially fishing)? 5 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? (5) Ethnic Minorities and Indigenous Peoples 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected?

89 Checklist: 13. Nuclear Power (4) Main Check s Confirmation of and Social (5) Ethnic Minorities and Indigenous Peoples 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? 4. Social (6) Working Conditions (including occupational safety) 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 87 (7) Community Health, Safety and Security 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? (1) Impacts during Construction 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 5. Other (2) Accident Prevention Measures 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? (3) Monitoring 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)?

90 Checklist: 13. Nuclear Power (5) Main Check s Confirmation of and Social 5. Other (3) Monitoring 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? 6. Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Power Transmission and Distribution Lines checklist should also be checked (e.g. projects including installation of electric transmission lines and/or electric distribution facilities). 2 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. projects including construction of port and harbor facilities). 1 If necessary, safety considerations on exporting nuclear equipment and materials verified by the Ministry of Economy, Trade and Industry (METI), should be confirmed. 2 If necessary, the impacts to transboundary or global issues should be confirmed (including the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 88 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

91 Checklist: 14. HydroPower, Dams and Reservoirs (1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5 Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social Antipollution Measures (1) Water Quality 1 Do water quality of dam pond/reservoir comply with the country s ambient water quality standards? Is there a possibility that proliferation of phytoplankton and zooplankton will occur? 2 Does the quality of water discharged from the dam pond/reservoir comply with the country s ambient water quality standards? 3 Are adequate measures, such as clearance of woody vegetation from the inundation zone prior to flooding planned to prevent water quality degradation in the dam pond/reservoir? 4 Is there a possibility that reduced the river flow downstream will cause water quality degradation resulting in areas that do not comply with the country s ambient water quality standards? 5 Is the discharge of water from the lower portion of the dam pond/reservoir (the water temperature of the lower portion is generally lower than the water temperature of the upper portion) planned by considering the impacts to downstream areas? 6 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 1 Are earth and sand generated by excavation properly treated and disposed of in accordance with the laws and regulations of the host country? (2) Waste 3. Natural (1) Protected Areas (2) Ecosystem and Biota 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)?

92 Checklist: 14. HydroPower, Dams and Reservoirs (2) Main Check s Confirmation of and Social Natural (2) Ecosystem and Biota (3) Topography and Geology 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the project will adversely affect downstream aquatic environments? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 Will the structure of the project such as dam wall, disturb the migration of migratory fishes (including salmon, trout, eel, which migrate from the sea to fresh water to spawn)? Are adequate measures taken to reduce the impacts on migratory species? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that reductions in sediment loads downstream due to settling of suspended particles in the reservoir will cause impacts, such as scouring of the downstream riverbeds and soil erosion? Is there a possibility that sedimentation of the reservoir will cause loss of storage capacity, water logging upstream, and formation of sediment deposits at the reservoir entrance? Are the possibilities of the impacts studied, and adequate prevention measures taken? 4. Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan?

93 Checklist: 14. HydroPower, Dams and Reservoirs (3) Main Check s Confirmation of and Social (1) Resettlement 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? Social (2) Living and Livelihood (3) Heritage (4) Landscape 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that the project will adversely affect the downstream land uses? In particular, is there a possibility that reductions in the supply of fertile soils to downstream areas will adversely affect agricultural production? 3 Is sufficient infrastructure (e.g. hospitals, schools, roads) available for project implementation? If existing infrastructure is insufficient, is a plan developed to construct new infrastructure or improve existing infrastructure? 4 Is there a possibility that the existence of the dam will cause impacts on water navigation, such as limitations of vessel traffic and water area uses by local inhabitants? 5 Is the minimum flow required for maintaining downstream water uses secured? 6 Is there a possibility that reductions in water flow downstream or seawater intrusion will cause impacts on downstream water uses and land uses? 7 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? (5) Ethnic Minorities and Indigenous Peoples 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained?

94 92 Checklist: 14. HydroPower, Dams and Reservoirs (4) (6) Working Conditions (including occupational safety) 4. Social (7) Community Health, Safety and Security (1) Impacts during Construction Main Check s 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Is there possibility of diseases related to water or caused by water such as schistosomiasis, malaria, filariasis will be introduced? 3 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 4 In the case of the projects including borrow sites, if construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? Confirmation of and Social 5. Other (2) Accident Prevention Measures (3) Monitoring 1 Are adequate contingency plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as accident prevention programs, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? 2 Is a warning system established to alert the inhabitants to water discharge from the dam? 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties?

95 Checklist: 14. HydroPower, Dams and Reservoirs (5) 6. Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists Main Check s 1 Where necessary, pertinent items described in the Forestry Projects checklist should also be checked (e.g. projects in the mountains including large areas of deforestation). 2 In the case of dams and reservoirs, such as irrigation, water supply, and industrial water purposes, where necessary, pertinent items described in the Irrigation Projects, and Water Supply checklists should also be checked. 3 Where necessary, pertinent items described in the Power Transmission and Distribution Lines checklist should also be checked (e.g. projects including installation of electric transmission lines and/or electric distribution facilities). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, or global warming). Confirmation of and Social 93 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

96 Checklist: 15. Other Electric Generation (1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social Antipollution Measures (1) Air Quality 1 In the case that electric power is generated by combustion, such as biomass energy projects, do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust emitted by power plant operations comply with the country s emission standards and ambient air quality standards? 2 Do air pollutants, such as hydrogen sulfide emitted from geothermal power plants comply with the country s standards? Is there a possibility that emitted hydrogen sulfide will cause impacts on the surrounding areas, including vegetation? 3 Do air pollutants emitted from other facilities comply with the country s emission standards? 4 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the country s ambient air quality standards? 5 Are adequate measures taken to reduce GHG emissions from the project?

97 Checklist: 15. Other Electric Generation (2) Main Check s Confirmation of and Social 2. Antipollution Measures (2) Water Quality (3) Waste 1 Do effluents (including thermal effluent) from various facilities, such as power generation facilities comply with the country s effluent standards? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? 2 In the case of geothermal power plants, is there a possibility that geothermal utilization will cause water pollution by pollutants, such as As and Hg contained in geothermal fluids? If water pollution is anticipated, are adequate measures considered? 3 Do leachates from the waste disposal sites comply with the host country s effluent standards and ambient water quality standards? Are adequate measures taken to prevent contamination of soil, groundwater, and seawater by leachates? 4 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 5 Are adequate measures taken to prevent contamination of surface water and groundwater by the effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the country s ambient water quality standards? 1 Are wastes generated by the plant operations properly treated and disposed of in accordance with the laws and regulations of the host country (especially biomass energy projects)? 95 (4) Soil Contamination (5) Noise and Vibration (6) Subsidence (7) Odor 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination? 1 Do noise and vibrations from the operation comply with the host country s standards? 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? 1 Are there any odor sources? Are adequate odor control measures taken?

98 Checklist: 15. Other Electric Generation (3) (1) Protected Areas Main Check s 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Confirmation of and Social Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the country s laws or international treaties etc.? 6 Is there a possibility that localized micro-meteorological changes due to wind power generation will affect valuable vegetation in the surrounding areas? (Is there valuable vegetation in the vicinity of the wind power generation facilities?) If impacts on vegetation are anticipated, are adequate measures considered? 7 Are the wind power generation facilities (wind turbines) sited by considering the habitats and migration routes of sensitive or potentially affected bird species? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? (3) Hydrology (4) Topography and Geology 1 Is there a possibility that hydrological changes due to installation of structures, such as weirs will adversely affect the surface and groundwater flows (especially in "run of the river generation" projects)? 1 Is there a possibility that the project will cause a large-scale alteration of the topographic features and geological structures in the surrounding areas (especially in run-of-river dams projects and geothermal power generation projects)?

99 Checklist: 15. Other Electric Generation (4) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that the amount of water (e.g. surface water, groundwater) used and discharge of effluents by the project will adversely affect the existing water uses and water area uses? 3 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

100 Checklist: 15. Other Electric Generation (5) (5) Ethnic Minorities and Indigenous Peoples Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? (7) Community Health, Safety and Security 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate contingency plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as accident prevention programs, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered?

101 Checklist: 15. Other Electric Generation (6) 5. Other (3) Monitoring Main Check s 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social 6. Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Power Transmission and Distribution Lines checklist should also be checked (e.g. projects including installation of electric transmission lines and/or electric distribution facilities). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, or global warming). 99 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

102 Checklist: 16. Power Transmission and Distribution Lines(1) Main Check s Confirmation of and Social (1) ESIA and Permits 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? Permits and Approvals, Explanations 2. Antipollution Measures (2) Explanations to the Public (1) Water Quality (2) Waste 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? 1 Is there a possibility that soil runoff from the bare lands resulting from earthmoving activities, such as cutting and filling will cause water quality degradation in downstream water areas? If water quality degradation is anticipated, are adequate measures considered? 2 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 3 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? 1 Are wastes properly treated and disposed of in accordance with the laws and regulations of the host country? (3) Soil Contamination 1 Has the soil in at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination?

103 Checklist: 16. Power Transmission and Distribution Lines(2) (1) Protected Areas Main Check s 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Confirmation of and Social Natural (2) Ecosystem and Biota (3) Topography and Geology 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the country s laws or international treaties etc.? 6 Are adequate protection measures taken to prevent impacts, such as disruption of migration routes and habitat fragmentation of wildlife and livestock? 7 Is there a possibility that improved access by the project will cause impacts, such as destruction of forest, poaching, desertification, reduction in wetland areas, and disturbance of ecosystem due to introduction of exotic (non-native invasive) species and pests? Are adequate measures for preventing such impacts considered? 8 In cases where the project site is located in undeveloped areas, is there a possibility that the new development will result in extensive loss of natural environments? 9 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a soft ground on the route of power transmission lines that may cause slope failures or landslides? Are adequate measures considered to prevent slope failures or landslides, where needed? 2 Is there a possibility that civil works, such as cutting and filling will cause slope failures or landslides? Are adequate measures considered to prevent slope failures or landslides? 3 Is there a possibility that soil runoff will result from cut and fill areas, waste soil disposal sites, and borrow sites? Are adequate measures taken to prevent soil runoff?

104 Checklist: 16. Power Transmission and Distribution Lines(3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that installation of structures, such as power line towers will cause a radio interference? If significant radio interference is anticipated, are adequate measures considered? 3 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

105 103 Checklist: 16. Power Transmission and Distribution Lines(4) 4. Social (5) Ethnic Minorities and Indigenous Peoples (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? Confirmation of and Social 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate contingency plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as accident prevention programs, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered?

106 Checklist: 16. Power Transmission and Distribution Lines(5) 5. Other (3) Monitoring Main Check s 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Road, railways and briges checklist should also be checked (e.g. projects including installation of access roads). 2 Where necessary, pertinent items described in the Forestry checklist should also be checked (e.g. projects including a large-scale logging of woods). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, or global warming). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

107 Checklist: 17. Roads, Railways and Bridges(1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social 105 (1) Air Quality 1 Is there a possibility that air pollutants emitted from various sources, such as vehicle traffic will affect ambient air quality? Does ambient air quality comply with the host country s ambient air quality standards? 2 Where industrial areas already exist near the route, is there a possibility that the project will make air pollution worse? 2. Antipollution Measures (2) Water Quality 1 Is there a possibility that soil runoff from the bare lands resulting from earthmoving activities, such as cutting and filling will cause water quality degradation in downstream water areas? 2 Is there a possibility that surface runoff from roads will contaminate water sources, such as groundwater? 3 Do effluents (including sanitary wastewater and rainwater drainage) from various facilities, such as stations and parking areas/service areas comply with the host country s effluent standards and ambient water quality standards? 4 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards?

108 Checklist: 17. Roads, Railways and Bridges(2) Main Check s Confirmation of and Social (3) Waste 1 Are wastes from various facilities, such as stations and parking areas/service areas properly treated and disposed of in accordance with the laws and regulations of the host country? 2 Are surplus soil from the tunnel and subway construction contaminated with heavy metals derived from naturalwastes? Are they properly treated and disposed of in accordance with the laws and regulations of the host country? 2. Antipollution Measures (4) Soil Contamination (5) Noise and Vibration 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination? 1 Do noise and vibrations from vehicle and train traffic comply with the host country s standards? (6) Odor 1 Are there any odor sources? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the country s laws or international treaties etc.? 6 Are adequate protection measures taken to prevent impacts, such as disruption of migration routes and habitat fragmentation of wildlife and livestock? 7 Is there a possibility that installation of roads will cause impacts, such as destruction of forest, poaching, desertification, reduction in wetlands areas, and disturbance of ecosystems due to introduction of exotic (non-native invasive) species and pests? Are adequate measures for preventing such impacts considered? 8 In case where the project site is located at undeveloped areas, is there a possibility that the new development will result in extensive loss of natural environments? 9 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem?

109 Checklist: 17. Roads, Railways and Bridges(3) Main Check s Confirmation of and Social (3) Hydrology 1 Is there a possibility that alteration of topographic features due to the installation of structures, such as tunnels will adversely affect surface water and groundwater flows? 3. Natural (4) Topography and Geology 1 Is there a soft ground on the route that may cause slope failures or landslides? Are adequate measures considered to prevent slope failures or landslides, where needed? 2 Is there a possibility that civil works, such as cutting and filling will cause slope failures or landslides? Are adequate measures considered to prevent slope failures or landslides? 3 Is there a possibility that soil runoff will result from cut and fill areas, waste soil disposal sites, and borrow sites? Are adequate measures taken to prevent soil runoff? Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement?

110 Checklist: 17. Roads, Railways and Bridges(4) Main Check s Confirmation of and Social (2) Living and Livelihood 1 Where roads or railways are newly installed, is there a possibility that the project will affect the existing means of transportation and the associated workers? Is there a possibility that the project will cause significant impacts, such as extensive alteration of existing land uses, changes in sources of livelihood, or unemployment? Are adequate measures considered for preventing these impacts? 2 Is there a possibility that the project will adversely affect the living conditions of inhabitants other than the affected inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 3 Is there a possibility that the project will adversely affect road traffic in the surrounding areas (e.g. by causing increases in traffic congestion and traffic accidents)? 4 Is there a possibility that roads and railways will cause impede the movement of inhabitants? 5 Is there a possibility that structures associated with roads (such as bridges) will cause a sun shading and radio interference? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? 4. Social (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? 108 (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? (5) Ethnic Minorities and Indigenous Peoples 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained?

111 Checklist: 17. Roads, Railways and Bridges(5) 4. Social (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security Main Check s 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? Confirmation of and Social 109 (1) Impacts during Construction 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 5. Other (2) Accident Prevention Measures (3) Monitoring 1 Are adequate contingency plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as accident prevention programs, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties?

112 Checklist: 17. Roads, Railways and Bridges(6) 6. Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists Main Check s 1 Where necessary, pertinent items described in the Forestry Projects checklist should also be checked (e.g. projects including large areas of deforestation). 2 Where necessary, pertinent items described in the Power Transmission and Distribution Lines checklist should also be checked (e.g. projects including installation of power transmission lines and/or electric distribution facilities). 1 If necessary, the impacts to transboundary or global issues should be confirmed, if necessary (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, or global warming). Confirmation of and Social 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project 110

113 Checklist: 18. Airports (1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social 111 (1) Air Quality 1 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust emitted from various sources, such as aircraft, vehicles (including airport users vehicles), and ancillary facilities comply with the host country s emission standards? 2 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 3 Are adequate measures taken to reduce GHG emissions from the project? 2. Antipollution Measures (2) Water Quality 1 Do pollutants, such as BOD, COD, SS, oil and grease contained in effluents from various facilities, such as related facilities and ancillary facilities comply with the host country's effluent standards? 2 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 3 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? (3) Waste (4) Soil Contamination 1 Are wastes from the airport and ancillary facilities properly treated and disposed of in accordance with the laws and regulations of the host country? 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination by leaked materials, such as jet fuel?

114 Checklist: 18. Airports (2) Main Check s Confirmation of and Social (5) Noise and Vibration 1 Does noise from aircraft comply with the host country s standards? 2 Is there a possibility that noise and vibrations from various sources, such as airport users vehicles and vehicles for airport operations will adversely affect ambient noise levels? If impacts are anticipated, are adequate noise mitigation measures considered? 2. Antipollution Measures (6) Subsidence 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? (7) Odor 1 Are there any odor sources? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Natural (2) Ecosystem and Biota (3) Hydrology 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that hydrological changes due to the installation of airport and related facilities will adversely affect surface water and groundwater flows? 2 In the case of offshore airport projects, is there a possibility that the project will adversely affect hydrological conditions, such as waves, tidal currents, and river flows?

115 Checklist: 18. Airports (3) 3. Natural (4) Topography and Geology Main Check s 1 Is there a possibility that extensive area of site preparation will adversely alter topographic features and geological structures in the surrounding areas? 2 Is the stability of the existing topographic conditions adequately considered for alteration of topographic features, such as earth cut and fill operations? 3 Is there a possibility that soil runoff will result from cut and fill areas, waste soil disposal sites, and borrow sites? Are adequate mitigation measures taken to prevent soil runoff? 4 In the case of offshore airport projects, is there a possibility that the project will eliminate natural beaches? Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement?

116 Checklist: 18. Airports (4) Main Check s Confirmation of and Social (2) Living and Livelihood (3) Heritage 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that the project will affect road traffic in the surrounding areas, and land and water area uses? 3 Is sufficient infrastructure (e.g. access roads) available for the project implementation? If existing infrastructure is insufficient, is a plan developed to construct new infrastructure or improve existing infrastructure? 4 Is there a possibility that airport facilities and structures will cause a sun shading and radio interference? 5 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? Social (5) Ethnic Minorities and Indigenous Peoples 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? (6) Working Conditions (including occupational safety) 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.?

117 Checklist: 18. Airports (5) 4. Social (7) Community Health, Safety and Security Main Check s 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? Confirmation of and Social 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate contingency plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as accident prevention programs, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? 115 (3) Monitoring 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? 6. Notes (1) Reference to Checklists of Other Sectors 1 Where necessary, pertinent items described in the Roads, Railways and bridges checklist should also be checked (e.g. projects including access roads to the airport). 2 In the case of offshore airport projects, where necessary, pertinent items described in the Ports and Harbors checklist should also be checked. 3 Where necessary, pertinent items described in the Forestry Projects checklist should also be checked (e.g. projects including large areas of deforestation). 6. Notes (2) Notes on Using Checklists 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, or global warming).

118 Checklist: 18. Airports (6) Main Check s Confirmation of and Social 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project 116

119 Checklist: 19. Ports and Harbors (1) Main Check s Confirmation of and Social (1) ESIA and Permits 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1. Permits and Approvals, Explanations (2) Explanations to the Public 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? Antipollution Measures (1) Air Quality 1 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust emitted from various sources, such as ships, vehicles, and the ancillary facilities comply with the host country s emission standards? 2 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 3 Are adequate measures taken to reduce GHG emissions from the project?

120 Checklist: 19. Ports and Harbors (2) Main Check s Confirmation of and Social (2) Water Quality 1 Do general effluents from the related facilities comply with the host country s effluent standards and ambient water quality standards? 2 Do effluents from ships and ancillary facilities (e.g. dock) comply with the host country s effluent standards and ambient water quality standards? 3 Are adequate measures taken to prevent spills and discharges of materials, such as oils and hazardous materials to the surrounding water areas? 4 Is there a possibility that oceanographic changes, such as alteration of ocean currents, and reduction in seawater exchange rates (deterioration of seawater circulation) due to modification of water areas, such as shoreline modifications, reduction in water areas, and creation of new water areas will cause changes in water temperature and water quality? 5 In the case of the projects including land reclamation, are adequate measures taken to prevent contamination of surface water, seawater, and groundwater by leachates from the reclamation areas? 6 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? Antipollution Measures (3) Waste 1 Are wastes from ships and the related facilities properly treated and disposed of in accordance with the laws and regulations for the host country? 2 Is offshore dumping of dredged materials and soils properly treated and disposed of in accordance with the laws and regulations of the host country to prevent impacts on the surrounding waters? 3 Are adequate measures taken to prevent discharge or dumping of hazardous materials to the surrounding water areas? (4) Soil Contamination 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination? (5) Noise and Vibration 1 Do noise and vibrations from the operation comply with the host country s standards? 1 Are there any odor sources? Are adequate odor control measures taken? (6) Odor (7) Sediment 1 Are adequate measures taken to prevent contamination of sediments by discharges or dumping of materials, such as hazardous materials from ships and the related facilities?

121 Checklist: 19. Ports and Harbors (3) (1) Protected Areas Main Check s 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Confirmation of and Social Natural (2) Ecosystem and Biota (3) Hydrology (4) Topography and Geology 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the project will adversely affect aquatic organisms? If impacts are anticipated, are adequate measures taken to reduce the impacts on aquatic organisms? 7 Is there a possibility that the project will adversely affect vegetation and wildlife of coastal zones? If significant impacts are anticipated, are adequate measures taken to reduce the impacts on vegetation and wildlife? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that the installation of port and harbor facilities will cause oceanographic changes? Is there a possibility that the installation of the facilities will adversely affect oceanographic conditions, such as waves, and tidal currents? 1 Is there a possibility that installation of port and harbor facilities will cause a large-scale alteration of topographic features and geological structures in the surrounding areas or elimination of natural beaches?

122 Checklist: 19. Ports and Harbors (4) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that changes in water uses (including fisheries and recreational uses) in the surrounding areas due to project will adversely affect the livelihoods of inhabitants? 3 Is there a possibility that port and harbor facilities will adversely affect the existing water traffic and road traffic in the surrounding areas? 4 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

123 Checklist: 19. Ports and Harbors (5) (5) Ethnic Minorities and Indigenous Peoples Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate contingency plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as accident prevention programs, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered?

124 Checklist: 19. Ports and Harbors (6) 5. Other (3) Monitoring Main Check s 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Roads, Railways and bridges checklist should also be checked (e.g. projects including access roads to the ports). 1 Where necessary, impacts on groundwater hydrology (groundwater level drawdown and salinization) that may be caused by alteration of topography, such as land reclamation and canal excavation should be considered, and impacts, such as land subsidence that may be caused by groundwater uses should be considered. Adequate mitigation measures should be taken. 2 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

125 Checklist: 20. Water Supply(1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social Antipollution Measures (1) Air Quality (2) Water Quality 1 Is there a possibility that chlorine emitted from chlorine storage facilities and chlorine injection facilities will cause air pollution? Do chlorine concentrations within the working conditions comply with the host country s occupational health and safety standards? 2 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust comply with the host country s emission standards? 3 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 4 Are adequate measures taken to reduce GHG emissions from the project? 1 Do pollutants, such as SS, BOD, COD, ph contained in effluents discharged by the facility operations comply with the country s effluent standards? 2 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 3 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? (3) Waste (4) Soil Contamination 1 Are wastes, such as sludge generated by the facility operations properly treated and disposed of in accordance with the laws and regulations of the host country? 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination?

126 Checklist: 20. Water Supply(2) Main Check s Confirmation of and Social 2. Antipollution Measures (5) Noise and Vibration (6) Subsidence 1 Do noise and vibrations from pumping facility comply with the host country s standards? 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? (7) Odor 1 Are there any odor sources? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? (3) Hydrology (4) Topography and Geology 1 Is there a possibility that hydrological changes due to the installation of water intake facility will adversely affect surface water and groundwater flows? 1 Is there a possibility that the project will cause a large-scale alteration of topographic features and geological structures in the surrounding areas?

127 Checklist: 20. Water Supply(3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that water intake (e.g. surface water, groundwater) and water use in the surrounding areas due to project will adversely affect the livelihoods of inhabitants? 3 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

128 Checklist: 20. Water Supply(4) (5) Ethnic Minorities and Indigenous Peoples Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered?

129 Checklist: 20. Water Supply(5) 5. Other (3) Monitoring Main Check s 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social 6. Notes (1) Notes on Using Checklists 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming) ) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

130 Checklist: 21. Sewage and Wastewater Treatment (1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social 128 (1) Air Quality 1 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust comply with the host country s emission standards? 2 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 3 Are adequate measures taken to reduce GHG emissions from the project? 2. Antipollution Measures (2) Water Quality 1 Do pollutants, such as SS, BOD, COD, ph contained in effluents discharged by the facility operations comply with the host country s effluent standards? 2 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 3 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country's ambient water quality standards? (3) Waste (4) Soil Contamination 1 Are wastes, such as sludge generated by the facility operations properly treated and disposed of in accordance with the laws and regulations of the host country? 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination? If wastes, such as sludge are suspected to contain heavy metals, are adequate measures taken to prevent contamination of soil and groundwater by leachates from the wastes?

131 Checklist: 21. Sewage and Wastewater Treatment (2) Main Check s Confirmation of and Social (5) Noise and Vibration 1 Do noise and vibrations from sludge treatment facility and pumping facility comply with the host country s standards? 2. Antipollution Measures (6) Subsidence (7) Odor 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? 1 Are adequate odor control measures for any odor from sewage treatment facility taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Natural (2) Ecosystem and Biota (3) Topography and Geology 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the project will adversely affect aquatic environments, such as rivers? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that the project will cause a large-scale alteration of topographic features and geological structures in the surrounding areas?

132 Checklist: 21. Sewage and Wastewater Treatment (3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that changes in land uses and water uses due to the project will adversely affect the living conditions of inhabitants? 2 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 3 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

133 Checklist: 21. Sewage and Wastewater Treatment (4) (5) Ethnic Minorities and Indigenous Peoples Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered?

134 Checklist: 21. Sewage and Wastewater Treatment (5) 5. Other (3) Monitoring Main Check s 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social 6. Notes (1) Notes on Using Checklist 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming) ) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

135 Checklist: 22. Wastes Management and Disposal(1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social 133 (1) Air Quality 1 Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), soot and dust, and dioxins emitted from various sources (e.g. incinerators, waste collection vehicles) comply with the host country s emission standards? 2 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 3 Are adequate measures taken to reduce GHG emissions from the project? 2. Antipollution Measures (2) Water Quality (3) Waste 1 Do pollutants discharged by the facility operations comply with the host country s effluent standards and ambient water quality standards? 2 Do leachates from the waste disposal sites comply with the host country s effluent standards? 3 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 4 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country's ambient water quality standards? 1 Are wastes, such as treatment residues, cinder, and fly ash generated from crushing and segregation processes, and diverted wastes from composting process properly treated and disposed of in accordance with the laws and regulations of the host country? 2 Are hazardous and dangerous wastes properly segregated from other wastes, stabilized, treated, and disposed of in accordance with the laws and regulations of the host country?

136 Checklist: 22. Wastes Management and Disposal(2) Main Check s Confirmation of and Social (4) Soil Contamination 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contamination? If leachates seep from the waste disposal sites, are adequate measures taken to prevent contamination of soil and groundwater by leachates from the wastes? 2. Antipollution Measures (5) Noise and Vibration (6) Subsidence 1 Do noise and vibrations generated by the facility operations (especially incinerators, waste segregation and crushing facilities), and vehicle traffic for waste collection and transportation comply with the host country s standards? 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? (7) Odor 1 Are there any odor sources? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Natural (2) Ecosystem and Biota (3) Topography and Geology 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the project will adversely affect aquatic organisms? If impacts are anticipated, are adequate measures taken to reduce the impacts on aquatic organisms? 7 Is there a possibility that the project will adversely affect vegetation and wildlife? If impacts are anticipated, are adequate measures taken to reduce the impacts on vegetation and wildlife? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1Is there a possibility that the project will cause a large-scale alteration of topographic features and geological structures in the surrounding areas?

137 Checklist: 22. Wastes Management and Disposal(3) 3. Natural (4) Management of Abandoned Sites Main Check s 1 Are environmental protection and restoration plans (such as landfill gas and leachate collection and treatment systems, prevention of illegal dumping, and reforestation) after facility closure considered? 2 Is a sustainable management framework for the abandoned sites established? 3 Are adequate financial provisions secured to manage the abandoned sites? Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Are considerations given to the existing recovery systems, including waste pickers? 3 Is there a possibility that waste transportation will adversely affect the regional traffic? 4 Is there a possibility that effluents from the project and leachates form the waste disposal sites will adversely affect fisheries and other water uses by local inhabitants (especially drinking water)? 5 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples?

138 Checklist: 22. Wastes Management and Disposal(4) Main Check s Confirmation of and Social (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? 4. Social (5) Ethnic Minorities and Indigenous Peoples 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? 136 (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Is there possibility that pathologic insects or other disease vectors will breed as a result of the project? 3 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents?

139 Checklist: 22. Wastes Management and Disposal(5) Main Check s Confirmation of and Social (1) Impacts during Construction 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 5. Other (2) Accident Prevention Measures 1 Are adequate accident prevention plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as establishment of safety rules, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? 137 (3) Monitoring 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? 6. Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Forestry Projects checklist should also be checked (e.g. projects including large areas of deforestation). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

140 Checklist: 23. River and Channel Projects(1) Main Check s Confirmation of and Social (1) ESIA and Permits 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1. Permits and Approvals, Explanations (2) Explanations to the Public 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? 138 (1) Water Quality 1 Is there a possibility that changes in river flow downstream (mainly water level drawdown) due to the project will cause areas that do not comply with the country s ambient water quality standards? 2. Antipollution Measures (2) Waste (3) Subsidence 1 In the case of that large volumes of excavated/dredged materials are generated, are the excavated/dredged materials properly treated and disposed of in accordance with the laws and regulations of the host country? 1 Is there a possibility that the excavation of waterways will cause groundwater level drawdown or subsidence? Are adequate measures taken, if necessary? 3. Natural (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas?

141 Checklist: 23. River and Channel Projects(2) Main Check s Confirmation of and Social 3. Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that hydrologic changes, such as reduction of the river flow, and seawater intrusion up the river will adversely affect downstream aquatic organisms, animals, vegetation, and ecosystems? 7 Is there a possibility that the changes in water flows due to the project will adversely affect aquatic environments in the river? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 139 (3) Hydrology 1 Is there a possibility that hydrological changes due to the project will adversely affect surface water and groundwater flows? (4) Topography and Geology 1 Is there a possibility that excavation of rivers and channels will cause a large-scale alteration of the topographic features and geological structures in the surrounding areas?

142 Checklist: 23. River and Channel Projects(3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will cause adverse impacts to the downstream fisheries and other water uses? 3 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? (4) Landscape

143 Checklist: 23. River and Channel Projects(4) (5) Ethnic Minorities and Indigenous Peoples Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Is there possibility of diseases related to water or caused by water such as schistosomiasis, malaria, filariasis will be introduced? 3 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate contingency plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as accident prevention programs, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered?

144 Checklist: 23. River and Channel Projects(5) 5. Other (3) Monitoring Main Check s 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social 6. Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. projects including access roads to the ports). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming) ) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

145 143 Checklist: 24. Irrigation Projects(1) 1. Permits and Approvals, Explanations 2. Antipollution Measures (1) ESIA and Permits (2) Explanations to the Public (1) Water Quality (2) Waste Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? 1 Are considerations given to water pollution of the surrounding water bodies, such as rivers and groundwater by the effluents or leachates from irrigation ponds? Are adequate use/disposal standards for chemicals, such as fertilizers and agrochemicals established? Is a framework established to increase awareness of the standards among farmers? 2 Do effluents and ambient water quality of the surrounding water bodies comply with the host country s effluent standards and ambient water quality standards? 3 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 4 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? 1 Are wastes properly treated and disposed of in accordance with the laws and regulations of the host country? Confirmation of and Social (3) Soil Contamination (4) Subsidence (5) Odor 1 Is there a possibility that impacts in irrigated lands, such as salinization of soils will result? 2 Are adequate measures taken to prevent soil contamination of irrigated lands by agrochemicals, heavy metals and other hazardous substances? 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? 1 Are there any odor sources? Are adequate odor control measures taken?

146 Checklist: 24. Irrigation Projects(2) (1) Protected Areas Main Check s 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Confirmation of and Social Natural (2) Ecosystem and Biota (3) Hydrology 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 7 Is there a possibility that installation of structures, such as intake weirs will block the migration of migratory fishes (including salmon, trout, eel, which migrate from the sea to fresh water to spawn)? Are adequate measures taken to reduce the impacts on these species? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that hydrological changes due to the installation of water intake facility will adversely affect surface water and groundwater flows?

147 Checklist: 24. Irrigation Projects(3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood (3) Heritage 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Are proper allotments, such as water rights allotment in the project area made? Is there a possibility that the allotments will result in inequitable distribution or usurpation of water rights and available resources? 3 Is there a possibility that the amount of water used (surface water, groundwater) by the project will adversely affect the downstream fisheries and water uses? 4 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

148 Checklist: 24. Irrigation Projects(4) (5) Ethnic Minorities and Indigenous Peoples Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Is there possibility of diseases related to water or caused by water such as schistosomiasis, malaria, filariasis will be introduced? 3 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts?

149 Checklist: 24. Irrigation Projects(5) Main Check s Confirmation of and Social (2) Accident Prevention Measures 1 Are adequate contingency plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as accident prevention programs, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered? 5. Other (3) Monitoring 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Forestry Projects checklist should also be checked (e.g. projects including large areas of deforestation). 2 For the projects including construction of large-scale weirs, reservoirs, and dams, where necessary, pertinent items described in the Hydropower, Dams and Reservoirs checklist should also be checked. 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

150 Checklist: 25. Agriculture and Livestock Projects(1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social 148 (1) Air Quality 1 Is there a possibility that air pollutants such as ammonia and methane emitted from facilities of raising livestocks will adversely affect the surrounding environment? 2Are adequate measures taken to reduce GHG emissions from the project? 2. Antipollution Measures (2) Water Quality (3) Waste (4) Soil Contamination 1Are considerations given to water pollution of the surrounding water bodies, such as rivers and groundwater by effluents or leachates from agricultural lands and rangelands? Are adequate use/disposal standards for fertilizers, agrochemicals, and livestock wastes established? Is a framework established to increase awareness of the standards among farmers? 2 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 3 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? 1 Are wastes properly treated and disposed of in accordance with the laws and regulations of the host country? 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil contaminations?

151 Checklist: 25. Agriculture and Livestock Projects(2) 2. Antipollution Measures (5) Noise and Vibration (6) Subsidence (7) Odor (1) Protected Areas Main Check s 1 Do noise and vibrations generated by the facility operations, especially from processing facilities, comply with the host country s standards? 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? 1 Are there any odor sources? Are adequate odor control measures taken? 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Confirmation of and Social Natural (2) Ecosystem and Biota 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the project will result in the loss of breeding and feeding grounds for valuable wildlife? If they are lost, are there substitutes for the grounds near the original locations? 7 Is there a possibility that overgrazing will cause ecological degradation, such as impacts on wildlife habitats and desertification? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem?

152 Checklist: 25. Agriculture and Livestock Projects(3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitats? Are adequate measures considered to reduce the impacts, if necessary? 2 Is proper allotment made for rights to agricultural land use? Is there a possibility that the allotment will result in inequitable distribution or usurpation of land and available resources? 3 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

153 151 Checklist: 25. Agriculture and Livestock Projects(4) 4. Social (5) Ethnic Minorities and Indigenous Peoples (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? Confirmation of and Social 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate contingency plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as accident prevention programs, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered?

154 Checklist: 25. Agriculture and Livestock Projects(5) 5. Other (3) Monitoring Main Check s 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social 6. Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Forestry Projects checklists should also be checked. 2 Where necessary, pertinent items described in the Irrigation Projects checklists should also be checked. 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming) ) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

155 153 Checklist: 26. Forestry Projects(1) 1. Permits and Approvals, Explanations 2. Antipollution Measures (1) ESIA and Permits (2) Explanations to the Public (1) Air Quality (2) Water Quality (3) Waste (4) Soil Contamination (5) Odor Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? 1 Do air pollutants, such as dust, soot, sulfur oxides (SOx), nitrogen oxides (NOx), and organic chemical substances emitted from various sources, such as logging operations, forest products manufacturing processes, and incinerators comply with the host country s emission standards? 2 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 3 Are adequate measures taken to reduce GHG emissions from the project? 1 Is there a possibility that the use of chemicals, such as fertilizers, and agrochemicals will cause water pollution? 2 Where facilities, such as forest products manufacturing facilities are installed, do effluents from the facilities comply with the host country s effluent standards? 3 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 4 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? 1 Are wastes properly treated and disposed of in accordance with the laws and regulations of the host country? 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent soil and groundwater contamination caused by the use of chemicals, such as agrochemicals? 1 Are there any odor sources? Are adequate odor control measures taken? Confirmation of and Social

156 Checklist: 26. Forestry Projects(2) (1) Protected Areas Main Check s 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Confirmation of and Social Natural (2) Ecosystem and Biota (3) Hydrology (4) Topography and Geology 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided, or is an acquisition of the forest certification by the project proponent being carried out? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that changes in localized micro-meteorological conditions, such as solar radiation, temperature, and humidity due to a large-scale logging will affect the surrounding vegetation? 7 Is there a possibility that a large-scale logging will result in loss of breeding and feeding grounds for wildlife? 8 In the case of reforestation projects, is there a possibility that mono-species plantations will adversely affect wildlife habitats? Is there a possibility that monospecies plantations will cause outbreaks of pests? 9 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that alteration of rainwater runoff and runoff characteristics due to a large-scale timber harvesting and access road construction will cause adverse impacts on the hydrology of the surrounding areas? 2 Is there a possibility that decreased water retention capacity due to deforestation will affect the existing drainage patterns of the forest? 1 Is there a possibility that loss of forest stability due to timber harvesting will cause slope failures or landslides? (5) Management of Abandoned Sites 1 Are adequate restoration and vegetation plans considered for the harvested areas? In particular, are adequate measures taken to prevent soil runoff from the harvested areas? 2 Is a sustainable management system for the harvested areas established? 3 Are adequate financial provisions secured to manage the harvested areas?

157 Checklist: 26. Forestry Projects(3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? Is particular attention paid to the inhabitants whose livelihoods are based on primary industries, such as farming, raising livestock, or hunting and gathering in the forests? 2 Are adequate measures taken to prevent illegal entry into the forestry resource areas from the outside through newly constructed access roads? 3 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

158 Checklist: 26. Forestry Projects(4) (5) Ethnic Minorities and Indigenous Peoples Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate contingency plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as accident prevention programs, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered?

159 Checklist: 26. Forestry Projects(5) 5. Other (3) Monitoring Main Check s 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social 6. Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Irrigation Projects checklists should also be checked. 2 Where necessary, pertinent items described in the Agriculture and Livestock Projects checklists should also be checked. 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming) ) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

160 Checklist: 27. Fishery Projects(1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social Antipollution Measures (1) Water Quality (2) Waste 1 Are considerations given to water pollution of the surrounding water areas by effluents, such as fish pond effluents? Are adequate standards for the use of feeds and agents/antibiotics established? Is a framework established to increase awareness of these standards? 2 Do effluents from various sources, such as fish ponds, processing facilities, and fishing boats, and water quality of the surrounding water areas comply with the host country s effluent standards and the country s ambient water quality standards? 3 Does the quality of sanitary wastewater and stormwater comply with the host country's effluent standards? 4 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? 1 Are wastes from the projects (especially from processing facilities) properly treated and disposed of in accordance with the laws and regulations of the host country? (3) Noise and Vibration 1 Do noise and vibrations from the operation, especially from processing facility, comply with the host country s standards? (4) Odor 1 Are there any odor sources? Are adequate odor control measures, especially at processing facility, taken?

161 Checklist: 27. Fishery Projects(2) (1) Protected Areas Main Check s 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Confirmation of and Social Natural (2) Ecosystem and Biota (3) Hydrology (4) Topography and Geology 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 6 Is there a possibility that the project will adversely affect aquatic organisms? If significant impacts are anticipated, are adequate protection measures taken to reduce the impacts on aquatic organisms? 7 Is there a possibility that the project will adversely affect vegetation and wildlife? If significant impacts are anticipated, are adequate measures taken to reduce the impacts on vegetation and wild life? 8 Is there a possibility that aquatic organisms and fish will be overexploited? Are fishery practices that reduce impacts on ecosystems employed? Is there a possibility that lost or discarded fishing nets, traps and other fishing gear will adversely affect ecosystems? 9 Is there a possibility that the feeding associated with aquaculture activities will cause eutrophication of water bodies and result in red tide blooms? Are adequate measures for eutrophication considered? 10 Is there a possibility that introduction of exotic species (non-native invasive species) and migration of disease-carrying pests will disturb ecosystems? Are adequate pest control measures considered? 11 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that hydrological changes due to installation of facilities, such as fish ponds in inland and coastal areas will adversely affect surface water and groundwater flows? 1 Is there a possibility that development in coastal zones will cause a large-scale of alteration of topographic features and geological structures, subsidence and elimination of natural beaches around the project site?

162 Checklist: 27. Fishery Projects(3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Are proper allotments for rights to water area use (e.g. fishing rights) made? 3 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

163 Checklist: 27. Fishery Projects(4) (5) Ethnic Minorities and Indigenous Peoples Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security 1 Is the project proponent not violating any laws and regulations associated with the working conditions of the host country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Is there possibility of diseases related to water or caused by water such as schistosomiasis, malaria, filariasis will be introduced? 3 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate contingency plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as accident prevention programs, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered?

164 Checklist: 27. Fishery Projects(5) 5. Other (3) Monitoring Main Check s 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 For processing and storage facilities, where necessary, pertinent items described in the General Manufacturing checklist should also be checked. 2 Where necessary, pertinent items described in the Ports and Harbors checklist should also be checked (e.g. projects including construction of ports and harbor facilities). 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

165 Checklist: 28. Other Infrastructure Projects(1) 1. Permits and Approvals, Explanations (1) ESIA and Permits (2) Explanations to the Public Main Check s 1 Have ESIA reports been officially completed? Have ESIA reports been written in the official language or a language widely used in the country of the host country? 2 Have ESIA reports been approved by the government of the host country? 3 Have ESIA reports been unconditionally approved? If conditions are imposed on the approval of ESIA reports, are the conditions satisfied? 4 In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country s government? 1 Is the project accepted in a manner that is socially appropriate to the country and locality throughout the preparation and implementation stages of the project based on sufficient consultations with stakeholders, such as local residents, conducted via disclosure of project information and potential impacts? 2 Are the records of such consultations with the stakeholders, such as local residents, prepared? 3 Are the written materials for the disclosure prepared in a language and form understandable to the local residents? 4 Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copying of the reports permitted? 5Are proper responses made to comments from the public and regulatory authorities? Confirmation of and Social Antipollution Measures (1) Air Quality (2) Water Quality (3) Waste (4) Soil Contamination (5) Noise and Vibration 1 Do air pollutants, (such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust) emitted from the proposed infrastructure facilities and ancillary facilities comply with the host country s emission standards? 2 Is there a possibility that air pollutants emitted from the project will cause areas that do not comply with the host country s ambient air quality standards? 3 Are adequate measures taken to reduce GHG emissions from the project? 1 Do effluents or leachates from various facilities, such as infrastructure facilities and the ancillary facilities comply with the host country s effluent standards? 2 Does the quality of the sanitary wastewater and stormwater comply with the host country's effluent standards? 3 Are adequate measures taken to prevent contamination of surface water and groundwater by these effluents? Is there a possibility that the effluents from the project will cause areas that do not comply with the host country s ambient water quality standards? 1 Are wastes from the infrastructure facilities and ancillary facilities properly treated and disposed of in accordance with the laws and regulations of the host country? 1 Has the soil at the project site been contaminated in the past, and are adequate measures taken to prevent contamination of soil and groundwater caused by effluents or leachates from various facilities, such as infrastructures facilities and the ancillary facilities? 1 Do noise and vibrations from the operation comply with the host country s standards?

166 Checklist: 28. Other Infrastructure Projects(2) Main Check s Confirmation of and Social 2. Antipollution Measures (6) Subsidence (7) Odor 1 In the case of withdrawal of a large volume of groundwater, is there a possibility that it will cause subsidence? 1 Are there any odor sources? Are adequate odor control measures taken? (1) Protected Areas 1 Is the project site located in protected areas designated by the host country s laws or international treaties etc.? Is there a possibility that the project will significantly affect the protected areas? Natural (2) Ecosystem and Biota (3) Hydrology (4) Topography and Geology 1 Does the project cause significant conversion or significant degradation of forests with important ecologically value (including primary forests and natural forests in tropical areas) and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 2 In case the projects involve the significant conversion or degradation of natural habitats including natural forests, is the avoidance of impacted considered preferentially? If the impacts are unavoidable, will the appropriate mitigation measures be taken? 3 Will the evaluation of the impacts on natural habitats by the project and consideration for the offset measures be carried out based on expert opinion? 4 Is the illegal logging of the forest avoided? 5 Does the project site encompass primary forests, natural forests in tropical areas and habitats with important ecological value (including coral reefs, mangrove wetlands and tidal flats)? 6 Does the project site encompass the protected habitats of endangered species designated by the host country's laws or international treaties etc.? 7 Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the project will adversely affect aquatic environments such as rivers, in the case of development in the land area? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms? 8 If any adverse impacts on ecosystem are predicted, are adequate measures taken to reduce the impacts on ecosystem? 1 Is there a possibility that hydrological changes due to the project will adversely affect surface water and groundwater flows? 1 Is there a possibility that the project will cause a large-scale alteration of topographic features and geological structures in the surrounding areas?

167 Checklist: 28. Other Infrastructure Projects(3) Main Check s Confirmation of and Social Social (1) Resettlement 1 Are involuntary resettlement and loss of means of livelihoods avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts caused by the resettlement and loss of means of livelihoods? 2 Are the people affected by the project provided with adequate compensation and supports to improve their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? 3 Is the participation of the people affected and their communities promoted in planning, implementation, and monitoring of involuntary resettlement action plans and measures against the loss of their means of livelihood? In addition, will appropriate and accessible grievance mechanisms be established for the people affected and their communities? 4 Is the resettlement action plan (including livelihood restoration plan as needed) prepared and disclosed to the public for the project which will results in a large-scale resettlement or large-scale loss of means of livelihood? Does the resettlement action plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 5 In preparing a resettlement action plan, is consultation made with the affected people and their communities based on sufficient information made available to them in advance and is explanations given in a form, manner, and language that are understandable to the affected people? 6 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities in the resettlement action plan? 7 Are agreements with the affected people obtained prior to the resettlement? 8 Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the resettlement action plan? 9 Is a plan developed to monitor the impacts of resettlement? (2) Living and Livelihood 1 Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? 2 Has appropriate consideration been given to vulnerable social groups, such as women, children, the elderly, the poor, ethnic minorities and indigenous peoples? (3) Heritage 1 Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the host country s laws? (4) Landscape 1 Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

168 Checklist: 28. Other Infrastructure Projects(4) (5) Ethnic Minorities and Indigenous Peoples Main Check s 1 Are the impacts to ethnic minorities and indigenous peoples avoidable by project implementation? If unavoidable, are efforts made to minimize the impacts and to compensate for their losses? 2 If the project has adverse impacts on indigenous peoples' various rights in relation to land and resources, is such rights respected? 3 Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include elements required in the standard of the international financial institution benchmarked in its environmental reviews? 4 In preparing the indigenous peoples plan, is consultation made with the affected ethnic minorities and indigenous peoples based on sufficient information made available to them in advance and are explanations given in a form, manner, and language that are understandable to them? 5 Are the free, prior, and informed consents of the indigenous peoples obtained? Confirmation of and Social Social (6) Working Conditions (including occupational safety) (7) Community Health, Safety and Security 1 Is the project proponent not violating any laws and ordinances associated with the working conditions of the country which the project proponent should observe in the project? 2 Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? 3 Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.? 1 Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? 2 Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents? 5. Other (1) Impacts during Construction (2) Accident Prevention Measures 1 Are adequate measures considered to reduce impacts during construction (e.g. noise, vibrations, turbid water, dust, exhaust gases, and wastes)? 2 If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? 3 If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? 1 Are adequate contingency plans and mitigation measures developed to cover both the soft and hard aspects of the project, such as accident prevention programs, installation of prevention facilities and equipment, and safety education for workers? Are adequate measures for emergency response to accidental events considered?

169 Checklist: 28. Other Infrastructure Projects(5) 5. Other (3) Monitoring Main Check s 1 Are the monitoring programs and environmental management plans of the project prepared? 2 Are the items, methods and frequencies included in the monitoring program judged to be appropriate? 3 Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? 4 Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities? 5 Are the results of monitoring planned to be disclosed to the stakeholders of the project? 6 Is there a processing mechanism in place, for solving problems related to environmental and social considerations pointed out by third parties? Confirmation of and Social Notes (1) Reference to Checklists of Other Sectors (2) Notes on Using Checklists 1 Where necessary, pertinent items described in the Roads, Railways and Bridges checklist should also be checked (e.g. projects including access roads to the infrastructure facilities). 2For projects, such as installation of telecommunication cables, power line towers, and submarine cables, where necessary, pertinent items described in the Electric Power Transmission and Distribution Lines, and Pipelines checklists should also be checked. 1 If necessary, the impacts to transboundary or global issues should be confirmed (e.g. the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, and global warming). * For the communication infrastructure projects, applicable items are 1(1)(2), 3(1)(2), 4(1)-(5), 5(1)(3) and 6(1)(2), and only these items should be checked. 1) Regarding the Standards for Confirmation of Appropriateness of and Social, confirm the background and rationale for deviation and the measures to rectify it if necessary, when the environmental and social considerations of the project substantially deviate from the World Bank Safeguard Policies or IFC Performance Standards and a relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host nation and local governments concerned. For standards that current regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Safeguard Policies and the standards of developed countries such as Japan. 2) checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout the life cycle of the project

170 III. Monitoring Form - If environmental reviews indicate the need of monitoring by NEXI, NEXI undertakes monitoring for necessary items that are decided by environmental reviews. NEXI undertakes monitoring based on regular reports including measured data submitted by the project proponent. When necessary, the project proponent should refer to the following monitoring form for submitting reports. - When monitoring plans including monitoring items, frequencies and methods are decided, project phase or project life cycle (such as construction phase and operation phase or development, operation and mine closure) should be considered. 1. Permits and Public Explanation Monitoring ex.) Response/Actions to Comments and Guidance from Government Authorities Monitoring Results during Report Period 2. Mitigation Measures - Air Quality (Emission Gas / Ambient Air Quality) SO2 NO2 CO O2 Soot and dust SPM Dust Unit Measured Value (Mean) Measured Value (Max.) Country s Standards Referred International Standards Remarks (Measurement Point, Frequency, Method, etc.) - Water Quality (Effluent/Wastewater/Ambient Water Quality) ph SS (Suspended Solid) BOD COD DO Total Nitrogen Total Phosphorus Heavy Metals Hydrocarbons / Mineral Oils Phenols Cyanide Temperature Unit Measured Value (Mean) Measured Value (Max.) Country s Standards Referred International Standards Remarks (Measurement Point, Frequency, Method, etc.) - Waste Monitoring Monitoring Results during Report Period 168

171 - Noise / Vibration Noise level Vibration level Unit Measured Value (Mean) Measured Value (Max.) Country s Standards Referred International Standards Remarks (Measurement Point, Frequency, Method, etc.) - Odor Monitoring Monitoring Results during Report Period 3. Natural - Ecosystem Monitoring ex.) Negative effects/actions to Valuable species Monitoring Results during Report Period 4. Social - Resettlement Monitoring Monitoring Results during Report Period - Living / Livelihood Monitoring Monitoring Results during Report Period 169

172 IV. Frequently Asked Questions (FAQ) 1. General Q1. How have the most recently revised Guidelines been established and revised? A1. The NEXI Guidelines (hereinafter referred to as the Guidelines ) were first established in 2001 and then underwent major revision in 2002, 2009 and The newest revision in 2015 was made by taking into account public opinions including industrial associations, private businesses, NGOs, and governmental organizations. The revised Guidelines consultation meetings were held 11 times by November 2014 including a preparatory meeting held in December We also received valuable public comments during the one-month hearing period from 21 November 2014 to 22 December The Guidelines were then revised and finalized. Q2. How different are the NEXI Guidelines from those of the Japan Bank for International Cooperation (JBIC)? (Do you have any plan to develop common guidelines with JBIC?) A2. There is not much difference between JBIC and NEXI Guidelines though each was established and revised (the latest revision in 2015) based on its own nature of business. As the OECD Common Approaches encourage information sharing among ECAs, NEXI will share its information with JBIC so that we can reasonably implement confirmation process on environmental and social considerations by addressing the following: (1) Standardization of a screening form which includes questions for the Applicant and a checklist of items to be confirmed for each sector (2) Sharing information pertaining to environmental and social considerations; (3) Dispatch of field study missions to coincide with those dispatched by JBIC, if at all possible (4) Exchange of views with JBIC on findings of respective environmental reviews Q3. As NEXI is an institution working to promote Japanese trade, shouldn't NEXI give sufficient consideration to helping Japanese companies maintain international competitiveness? A3. The purpose of the Guidelines is, in light of the policy of the Japanese government, to promote the sound development of external transactions, such as foreign trade, by confirming whether the project sponsors have implemented appropriate environmental and social considerations in the projects subject to NEXI insurance services. The OECD Common Approaches also advocate coherence among policies regarding officially supported export credits, and policies for the protection of the environment. NEXI will continue to take into account the preservation of Japanese competitiveness, with due regard to business confidentiality, while securing appropriate environmental and social considerations. 2. Policy Q4. With regard to expressions such as environmental guidelines and environmental and social considerations, how is the term environment defined in the Guidelines? A4. NEXI thinks that Guidelines should take into account social environment in addition to the natural environment, as important factors. The Guidelines define environment as not only the natural environment, but also social aspects such as involuntary resettlement and respect for the human rights of indigenous peoples. NEXI has used the abbreviated name of Guidelines, instead of and Social Guidelines, in order to clarify our stance to make it sound familiar to general public. On the other hand, NEXI has used the expression environmental and social considerations, instead of environmental considerations, to clarify our stance that it is extremely important to confirm the consideration for social aspects such as involuntary resettlement and indigenous peoples. 170

173 Q5. In the Guidelines, confirmation of environmental and social considerations and environmental review appear frequently. In what sense are these used? A5. NEXI confirms the appropriateness of environmental and social considerations in three stages: Screening, Review, and Assurance of and Social (Post-Commitment). Review is a component of the process of confirming environmental and social considerations. In the Guidelines, they are as follows: <Screening> To classify insurable projects into 3 categories (Categories A, B, and C) based on the magnitude of impact < Review> To confirm the environmental and social considerations required for each category <Assurance of and Social (Post-Commitment))> To request the concerned project sponsors via the Applicants to provide information. (For A and B projects, to confirm via the Applicants the results of monitoring conducted by the project sponsors concerning items which could have significant environmental impacts) and to ask the relevant project sponsors through the Applicants to take appropriate actions, taking into account practicability of the measures and the extent of the Applicants involvement in the project if NEXI judges that there is a need for improvement in the situation with respect to environmental and social considerations. Q6. The Guidelines paragraph 2. stipulates that NEXI confirms whether the project sponsors implement appropriate environmental and social considerations, so as to.by the projects relating to insurance (two years or more) services from NEXI. Regarding projects that already underwent screening and environmental reviews, is it necessary under the Guidelines to conduct another screening and review if they require additional insurance coverage? A6. Regarding the existing projects that underwent screening and environmental review in the past, it is necessary in principle to submit a screening form for each insurance application. However, there may be cases where another screening or environmental review is not required if the screening and (or) review conducted in the past encompasses the entire project including a newly insurable part of the project and if the project's potential impact on the environment does not differ significantly from that foreseen by the initial screening and review. Q7. What provisions do the Guidelines contain to reflect the opinions of local residents affected by the project? A7. NEXI considers it necessary to take into account the opinions of people likely to be affected by the project. According to the Exhibit 1 (5) of the Guidelines, sufficient consultations with stakeholders, such as local residents, must be conducted via disclosure of information from an early stage when alternative proposals for the project plans may be examined. The outcome of such consultations must be incorporated into the contents of the project plan. Further, Appropriate consideration must be given to vulnerable social groups, such as women, children, the elderly, the poor, and ethnic minorities all of whom are susceptible to various environmental and social impacts and who may have little access, within society, to decision-making processes within society. And with regard to environmental and social consideration confirmation, the paragraph 3.(3) states, NEXI conducts appropriate environmental reviews utilizing information provided by the stakeholders, including local residents and local NGOs. 171

174 3. Screening Q8. When should the screening form be submitted? A8. The screening form should be submitted: (1) Before applying for Commitment of an insurance contract, or (2) Before applying for an insurance contract Q9. Is it possible to submit the screening form in English? A9. Yes. An English version of the screening form is also available on the NEXI website. Q10. After screening information has been made public, is there any possibility that NEXI may change the classification of the project? And how will such classification information be disclosed? A10. The Guidelines paragraph 3.(1) stipulates, NEXI may revise the categorization of projects when necessary, e.g., in cases where environmental impacts worth considering come to light after screening has been performed once on the basis of information provided by the Applicants. NEXI will immediately announce such revisions on its website. Q11. If a significant adverse impact on the environment becomes known after initial classification, and this leads to a change in classification from B to A, will the project need to meet requirements for A projects under the Guidelines? A11. In principle, when the category changes, the project sponsor will be asked through the Applicant or other parties to make appropriate environmental and social considerations so as to meet the requirements based on the new category. However, when such adverse impact occurs while the project is already in progress, NEXI considers it more important to take measures to resolve the problem that has emerged, rather than meeting the requirements of the new category. NEXI will therefore encourage the project sponsor, via the Applicant, to this end. 172

175 4. Categorization Q12. With regard to classification in the paragraph 3.(2) of the Guidelines, how do you decide whether the involvement of the Applicants is only a minor part of a project? A12. If the Applicants involvement in the project is extremely small and thus they are not allowed to express an opinion on the project design, it is deemed that the involvement of the Applicants is only minor. For example, if the insurable value is small compared with the total capital of the project (5% or less), NEXI regards it as minor. Q13. Under the Guidelines, would projects that will acquire equity interest without additional capital investment be automatically categorized as C? A13. NEXI would check through the screening form and hearing to the Applicants if the project does not have sensitive characteristics or is not located in a sensitive area, or if the executing project has not been received any strong complaints from local residents (negative check). NEXI then would decide that further environmental impact would not occur as the project is for acquisition of equity interest without additional capital investment. As a result NEXI would categorize the project as C. Q14. With regard to classification in the Guidelines, SDR 10 million is used as a threshold. What exchange rate is applied for converting SDR to yen? A14. SDR stands for Special Drawing Rights set by IMF agreement. SDR 10 million is about 1.69 billion yen (as of March 2, 2015). Please check the exchange rates in the IMF website - SDR Valuation. Q15. There are some cases where JBIC and NEXI provide different amounts of financing and insurance coverage, respectively, for the same project. Will this result in the same project being classified in different categories, depending on the organization? A15. That is theoretically possible. For the convenience of Applicants, however, it is desirable that NEXI and JBIC should cooperate as much as possible, in order to classify projects in the same category. Q16. Regarding the sensitive areas that should be considered at the time of categorization, Natural of Sensitive Areas in the paragraph 3.(2) of the Guidelines stipulates, habitats of rare species requiring protection under domestic legislation, international treaties, etc. Are standards set by the international organizations included in the international treaties, etc. stipulated in the Guidelines? A16. The international treaties, etc. stipulated in the Sensitive Areas do not necessarily include all the standards set by the international organizations. For categorization, however, standards referred to by the World Bank and International Financial Corporation (IFC) such as the IUCN Red List of Threatened Species will be considered. 173

176 5. Review Q17. What is the criterion for making environmental and social considerations in an environmental review? A17. In confirming environmental and social considerations, NEXI confirms compliance with environmental laws and regulations established by the government (central or local) of the project country and confirms whether a project meets the following international standards. World Bank Safeguard Policies or IFC Performance Standards Notwithstanding the above, IFC Performance Standards in the cases of (i) limited recourse or non-recourse project finance projects, (ii) structured financing transactions that share characteristics with project finance, (iii) other financial institutions who are forming a significant part of the project applying IFC Performance Standards, and (iv) other projects recognized as appropriate. In addition, if there is a relevant section of the, Health, and Safety Guidelines (EHS Guidelines) of the World Bank Group, NEXI will confirm whether the projects meet that section. When deemed appropriate, NEXI also uses, as reference points or benchmarks, standards established by other international financial institutions, other internationally recognized standards, and standards or good practices established by developed countries such as Japan. In addition, the Guidelines stipulates, If NEXI believes environmental and social considerations of the project substantially deviate from these standards and good practices, it confirms the background and rationale for this, and, when necessary, countermeasures against such deviation. (For details, please refer to the paragraph 3.(3) of the Guidelines.) Q18. Specifically, what are the World Bank s Safeguard Policies and IFC s Performance Standards? A18. They are the following policies and standards. World Bank Safeguard Policies Assessment (OP 4.01) Natural Habitats (OP 4.04) Pest Management (OP 4.09) Indigenous Peoples (OP 4.10) Physical Cultural Resources (OP 4.11) Involuntary Resettlement (OP 4.12) Forests (OP 4.36) Safety of Dams (OP 4.37) International Waterways (OP 7.50) Disputed Areas (OP 7.60) IFC Performance Standards Assessment and Management of and Social Risks and Impacts (PS1) Labor and Working Conditions (PS2) Resource Efficiency and Pollution Prevention (PS3) Community Health, Safety, and Security (PS4) Land Acquisition and Involuntary Resettlement (PS5) Biodiversity Conservation and Sustainable Management of Living Natural Resources (PS6) Indigenous Peoples (PS7) Cultural Heritage (PS8) 174

177 Q19. What kinds of international standards and good practices are referred to in the Guidelines? A19. There are numerous standards and good practices to be referred to individually, as the paragraph 3.(3) of the Guidelines states comprehensively as follows: NEXI also uses, as reference points or benchmarks, standards established by other international financial institutions, other internationally recognized standards, and standards or good practices established by developed countries such as Japan. Examples are indicated below: (1) Pollution prevention/abatement Regulatory standards of advanced regions, e.g. Japan and the U.S Malpol Convention, and others (2) Natural environment World Heritage Convention Ramsar Convention Washington Treaty Red List of IUCN, etc. (3) Social environment World Heritage Convention (4) Particular sectors Relevant aspects of Convention on Nuclear Safety and IAEA standards World Commission on Dams Report, etc. Q20. If a third party, with intent to thwart the project, provides NEXI with information which that third party cannot validate, how will NEXI deal with the information? A20. NEXI carries out environmental reviews by also utilizing information provided by the stakeholders. A wide variety of information is received, and NEXI is unable to confirm the veracity of all of it. Spending considerable time and cost to review based on unreliable information from unspecified sources would hinder the efficient operation required of an official institution. NEXI asks third parties to provide information which is as accurate as possible. Q21. From what sources does NEXI collect environmental information on projects? A21. NEXI collects information from Applicants concerning potential environmental impacts, environmental standards that the project sponsors are going to apply, and the results of public consultations. NEXI is also collecting information from sources other than Applicants through site visit. Q22. What is the scope of the stakeholders described in the Guidelines? A22. The Guidelines paragraph 3.(3) stipulates that stakeholders include local residents and local NGOs. However, NEXI believes that those living in the area where there is a risk of being adversely affected by the project, whether or not it is a project site, may become stakeholders. Such areas may extend to neighboring countries. NEXI considers that people in the vicinity of the project site should not be excluded just because they reside in different countries but rather included as stakeholders. assessment is conducted based on procedures of the project country. Consultations with stakeholders take place under this procedural framework. Consultations will be held on a case-by-case basis, taking into account individual projects and conditions in the surrounding areas. 175

178 Q23. Specifically, where is Japan s national contact point on the OECD Guidelines for Multinational Enterprises described in the paragraph 3.(3) of the Guidelines? A23. Japan s national contact points are as follows. OECD Division, Economic Affairs Bureau, Ministry of Foreign Affairs International Affairs Division, Minister's Secretariat, Ministry of Health, Labour and Welfare Trade and Investment Facilitation Division, Trade and Economic Cooperation Bureau, Ministry of Economy, Trade and Industry Q24. Who will conduct environmental assessment and monitoring? A24. assessment and monitoring should be conducted by the project sponsor, who has good knowledge of the project and a sense of ownership. Q25. Is the information NEXI seeks on the environment actually available? A25. NEXI believes the information can be procured through cooperation of the Applicants and other stakeholders. Q26. How do the Guidelines address human rights issues? A26. The Guidelines indicate that it is necessary to confirm proper consideration for human rights which may be dealt with in a concrete sense and which have clear criteria. The Exhibit 1 (3) of the Guidelines ( Scope of Impacts to be Examined ) describes about the social concerns including respect for human rights, illustrating the items to be considered in the project such as involuntary resettlement, indigenous people, gender, and the rights of children. Q27. What should be considered with regard to gender, children's rights, HIV/AIDS, and other communicable diseases? A27. According to the Guidelines, issues which should be considered appropriate according to the characteristics of each project will be checked and confirmed. The scope of impacts to be considered may vary from project to project, and thus it is more appropriate to consider issues for specific projects, rather than to apply a uniform rule. Some examples are provided below: <Gender> In case of resettlement, whether or not a mechanism is in place for providing adequate respect for women's opinions and views, and not excluding them. <Children's rights> In case of resettlement, whether or not there are adequate preparations for schools and healthcare facilities for children at the relocated site. <HIV/AIDS and other communicable diseases> In cases where large civil works including camps for workers, it is necessary to confirm whether or not workers will be able to receive adequate education on such diseases and infection controls measures. 176

179 Q28. According to the Exhibit 1 (3) of the Guidelines, community health, safety, and security is listed as one issue of the scope of impacts to be examined. What does NEXI confirm, in particular, regarding the use of security personnel in this respect? A28. In using security personnel, the Checklist stipulated Are appropriate measures being taken to ensure that security personnel involved in the project do not violate safety of other individuals involved, or local residents? as an item to be confirmed. IFC Performance Standard 4 requires more specifically that the project proponents should meet appropriately the following items, and it is our understanding that the World Bank Safeguard Policy is being considered for revision in a similar manner. (1) When the client retains direct or contracted workers to provide security, Client will assess risks posed by its security arrangements to those within and outside the project site. In making such arrangements, the client will be guided by the principles of proportionality and good international practice in relation to hiring, rules of conduct, training, equipping, and monitoring of such workers, and by applicable law. Client will make reasonable inquiries to ensure that those providing security are not implicated in past abuses; will train them adequately in the use of force (and where applicable, firearms), and appropriate conduct toward workers and Affected Communities; and require them to act within the applicable law. Client will provide a grievance mechanism for Affected Communities to express concerns about the security arrangements and acts of security personnel. (2) When the client uses government security personnel deployed to provide security services, Client will seek to ensure that security personnel will act in a manner consistent above. Client will encourage the relevant public authorities to disclose the security arrangements for the client s facilities to the public, subject to overriding security concerns. Q29. According to the Exhibit 1 (3) of the Guidelines, While air could include greenhouse gases (GHG), specific requirements for environmental and social considerations on this issue are to be made based on the Common Approaches. What provisions exist in the Common Approaches? Let us also know about the state of standards of international financial institutions used as benchmarks. A29. (1) Common Approaches GHG is referred to in the Common Approaches as examples of environmental impacts of environmental and social impacts to be specified in the passage generation of significant air emissions, including greenhouse gas emissions (IV CLASSIFICATION, Paragraph 10). However, our understanding is that this does not require additional measures with respect to environmental reviews, monitoring and information disclosure. On the other hand, the Common Approaches set forth that OECD members shall continue to build a body of experience on the application of the Common Approaches through regular reporting and exchanges of information, and as part of this proposition, the Common Approaches requires reporting to the OECD on projected annual emissions during the operations phase of projects, where such emissions are projected to be in excess of tonnes CO2-equivalent annually and where the member is in possession of necessary information, e.g. via ESIA report (VIII REPORTING AND MONITORING OF THE RECOMMENDATION, paragraph 42). The Common Approaches also listed support for thermal power plants as one of the issues that requires further consideration, and this will go further based on reporting of any actions taken to avoid, minimize and/or offset CO2 emissions for all new thermal power projects exceeding 700g/kWh emission intensity (Paragraph 43). At present (March 2015), OECD is further considering and building a body of experience with respect to the methodologies of accounting GHG emissions and reporting or support for thermal power plants based on the above paragraphs. In the case that the Common Approaches are revised based on such considerations, NEXI intends to conduct operations in accordance with the Common Approaches. 177

180 (2) International Standards used as benchmarks IFC Performance Standard 3, which is one of the international standards used as a benchmark, makes the following requirements for project sponsors with respect to GHG emissions. Client will consider alternatives and implement technically and financially feasible and cost-effective options to reduce project-related GHG emissions during the design and operation of the project (Paragraph 7). For projects that are expected to or currently produce more than 25,000 tonnes of CO2-equivalent annually, the client will quantify direct emissions from the facilities owned or controlled within the physical project boundary, as well as indirect emissions associated with the off-site production of energy used by the project. Quantification of GHG emissions will be conducted by the client annually in accordance with internationally recognized methodologies and good practice. Although the World Bank Safeguard Policies does not set forth requirements for GHG emissions, our understanding is that it is under consideration for revision in the similar manner as in IFC Performance Standards. Q30. What is the associated facilities expressed in the Exhibit 1 (3) of the Guidelines? A30. The associated facilities has the same meaning as associated facilities defined in the Common Approaches. The associated facilities are those facilities that are not a component of the project but that would not be constructed or expanded if the project did not exist and on whose existence the viability of the project depends. Such facilities may be funded, owned, managed, constructed and operated by the buyer and/or project sponsor or separately from the project. When undertaking a review of associated facilities, NEXI should, to a reasonable extent, assess the potential environmental and social impacts of associated facilities, taking into account the timing and location of their construction. Q31. The Guidelines Exhibit 1 (6) states, critical natural habitats (including critical forests) and natural habitats (including natural forests). Please identify specifically what they are. Also, please provide specific examples of significant conversion and significant degradation. A31. Based on the international standards used for benchmarks, the critical natural habitats (including critical forests) and natural habitats (including natural forests) are deemed to be the following: <World Bank Safeguard Policies (OP 4.04 Annex A, OP 4.36 Annex A)> (1) Critical natural habitats (including critical forests) (a) Existing protected areas and areas officially proposed by governments as protected areas, areas initially recognized as protected by traditional local communities, and sites that maintain conditions vital for the viability of these protected areas. (b) Other examples similar to the regions specified in (1) above, may include areas recognized by traditional local communities as having the same level of importance as protected areas, areas with known high suitability for bio-diversity conservation, and sites that are critical for rare, vulnerable, migratory, or endangered species. (c) Critical forests are the forest areas that qualify as the critical natural habitats indicated above. (2) Natural habitats (including natural forests) (a) Land and water areas where (i) the ecosystems' bio-logical communities are formed largely by native plant and animal species, and (ii) human activity has not essentially modified the area's primary ecological functions (b) Natural forests are forest land and associated waterways that qualify as the natural habitats indicated above. 178

181 <IFC Performance Standard 6 (Paragraphs 13 and 16)> (1) Critical habitats (including critical forests) Critical habitats are areas with high biodiversity value, including: (a) habitat of significant importance to Critically Endangered and/or Endangered species (b) habitat of significant importance to endemic and/or restricted-range species (c) habitat supporting globally significant concentrations of migratory species and/or congregatory species (d) highly threatened and/or unique ecosystems (e) areas associated with key evolutionary processes. (2) Natural habitats (including natural forests) (a) areas composed of viable assemblages of plant and/or animal species of largely native origin (b) areas where human activity has not essentially modified an area s primary ecological functions and species composition We recognize the significant conversion and significant degradation as follows based on the international standards used as benchmarks. <World Bank Safeguard Policies (OP 4.04 Annex A)> (1) Significant conversion (a) Elimination or severe diminution of the integrity of a critical or other natural habitat caused by a major, long-term change in land or water use. (2) Significant degradation (a) Modification of a critical or other natural habitat that substantially reduces the habitat's ability to maintain viable populations of its native species. <IFC Performance Standard 6 (Note 7)> (1) Significant conversion or degradation (a) Elimination or severe diminution of the integrity of a habitat caused by a major and/or long-term change in land or water use. (b) Modification that substantially minimizes the habitat's ability to maintain viable populations of its native species. Q32. What does NEXI confirm in the case of projects which involve involuntary resettlement? A32. The Guidelines emphasize appropriate dialogue with local residents in order to implement appropriate environmental and social considerations, as indicated in the Exhibit 2. NEXI will confirm, based on the information provided by the Applicants and other relevant parties, whether a consensus has been reached among residents by going through appropriate procedures. Besides information from the Applicants, NEXI acknowledges and utilizes the information provided by the host government and its agencies, international financial institutions, ECAs, and other stakeholders. As indicated in the Guidelines Exhibit 1 (7), NEXI will confirm if the project meets the World Bank Safeguard Policies or IFC Performance Standards concerning loss of means of livelihood that occurs without room of choice due to the project as well as involuntary resettlement. (For details please see the paragraph 3.(3) of the Guidelines) 179

182 Q33. The Guidelines Exhibit 1 (7) states, It is desirable that the resettlement action plan include elements required under the standards of international financial institutions which NEXI benchmarks in its environmental reviews. What are the elements specifically? A33. When NEXI uses the World Bank Safeguard Policies as a benchmark, it means OP 4.12 Annex A. When NEXI uses the IFC Performance Standards as a benchmark, it means the IFC s Guidance Note* 5 Annex A. For details, please see the website of World Bank and IFC. * Guidance Note to Performance Standards The main points in OP 4.12 Annex A are as follows. Results of socioeconomic studies on resettlement Definition of resettlers and eligibility for compensation and other support Valuation of and compensation for losses Detailed compensation and support plan Housing, infrastructure, and social services Resettled community participation Grievance procedures Implementation schedule Costs and budget Monitoring and evaluation IFC s Guidance Note 5 Annex A also lists almost the same items. Q34. The Guidelines Exhibit 1 (8) states, It is desirable that the indigenous peoples plan include the elements required under the standards of international financial institutions which NEXI benchmarks in its environmental reviews. What are the elements specifically? A34. When NEXI uses the World Bank Safeguard Policies as a benchmark purpose, it means OP 4.10 Annex B. When NEXI uses the IFC Performance Standards a benchmark purpose, it means the IFC s Guidance Note* 7 Annex A.. For details, please see the website of World Bank and IFC. * Guidance Note to Performance Standards The main points in OP 4.10 Annex B are as follows. A summary of the social assessment focused on indigenous peoples A summary of results of the free, prior, and informed consultation with the affected Indigenous Peoples communities An action plan of measures to ensure that the Indigenous Peoples receive social and economic benefits An appropriate action plan of measures to avoid, minimize, mitigate, or compensate for these adverse effects The cost estimates and financing plan for the IPP Accessible procedures appropriate to the project to address grievances by the affected Indigenous Peoples communities arising from project implementation The monitoring and evaluation mechanisms IFC s Guidance Note 7 Annex A also lists almost the same items. 180

183 Q35. The Guidelines Exhibit 1 (8) states, when a project may have adverse impacts on indigenous peoples various rights in relation to land and resources, free, prior, and informed consents must be obtained. Specifically, what kinds of procedure and agreements are required? A35. When a project may have adverse impacts on indigenous peoples, sufficient consultations with them or their participation procedures must be taken based on information disclosure in a similar manner as in the case of ordinary local residents (This is stipulated in the Exhibit 1 (5) of the Guidelines.). On the other hand, regarding the various rights that indigenous peoples have on their land and resources, Free, Prior, and Informed Consent (FPIC)) is required in addition to such ordinary procedures in light of their vulnerability. Although there is no universally accepted definition of FPIC, we consider that it will be established through good faith negotiations between the project proponents and the affected communities of indigenous peoples, in addition to usual consultations and procedures for participation. What is called consent here does not necessarily require unanimity by all the participants and may be achieved even when individuals or groups within the community explicitly disagree. FPIC is required in the circumstances that the inherent rights of indigenous peoples are affected, as shown below. The circumstance that a project site is located on the lands traditionally owned and customarily used, and that when natural resources are commercially developed on such land, adverse impact is expected. The circumstance that indigenous peoples are relocated from communally held lands and their natural resources. The circumstance that a project may significantly impacts on their critical cultural heritage. This concept is in line with the interpretation of FPIC in IFC Performance Standard 7, and our understanding is that the World Bank is under consideration toward the revision of its Safeguard Policies in this manner. Q36. The Guidelines Exhibit 1 (8) states, when a project may have adverse impacts on indigenous peoples various rights in relation to land and resources, such rights must be respected in accordance with the spirit of the relevant international declarations and treaties, and free, prior, and informed consents must be obtained. What are the international declarations and treaties relating to indigenous peoples? A36. The following declaration and convention correspond to the international declarations and treaties relating to indigenous peoples mentioned. These are international documents pertaining to the rights of indigenous peoples. They are not international standards such as the World Bank Safeguard Policies, of which NEXI ascertains whether a project meets the relevant aspects. United Nations Declaration on the Rights of Indigenous Peoples Convention concerning Indigenous and Tribal Peoples in Independent Countries (International Labor Organization (ILO) Convention No.169) Q37. The Guidelines Exhibit 2 states, consultation with stakeholders, such as local residents, must take place after sufficient information has been disclosed. Records, etc. of such consultations must be prepared. Will NEXI confirm whether consultations have taken place? A37. The Guidelines acknowledge the significance of dialogue with local residents to ensure appropriate environmental and social considerations. In conducting environmental reviews, the Guidelines stipulate for A projects that NEXI confirms involvement of the stakeholders and the progress of disclosure in connection with the relevant projects. NEXI will confirm whether or not consultations with stakeholders have taken place. 181

184 Q38. The Guidelines Exhibit 2 states, It is desirable that ESIA reports cover the items stipulated in the Common Approaches. Which part of the Common Approaches is referred? A38. s that are desired to be included in the ESIA reports are stipulated in Annex II of the Common Approaches. ANNEX II: and Social Impact Assessment (ESIA) Report* An and Social Impact Assessment (ESIA) report focuses on the significant issues of a project. The report's scope and level of detail should be commensurate with the project's potential impacts and risks, and should address the issues set out in the international standards applied to the project in accordance with paragraphs of this Recommendation. The ESIA report typically includes the following items (not necessarily in the order shown): 1. Non-technical executive summary: concisely discusses significant findings and recommended actions in lay language. 2. Policy, legal, and administrative framework: discusses the policy, legal, and administrative framework within which the Assessment is carried out, including host country regulations, including obligations implementing relevant international social and environmental treaties, agreements, and conventions, the international standards applied to the project, as well as any additional priorities and objectives for social or environmental performance identified by the buyer/project sponsor. Explains the environmental requirements of any co-financiers. 3. Project description: concisely describes the proposed project and its geographic, ecological, social, health and temporal context, including any additional project components that may be required (e.g. dedicated pipelines, access roads, power plants, water supply, housing, and raw material and product storage facilities). Encompasses facilities and activities by third parties that are essential for the successful operation of the project. Normally includes maps showing the project site and the project's area of influence. 4. Baseline data: assesses the dimensions of the study area and describes relevant physical, biological, socioeconomic, health and labour 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 mitigation measures. The section indicates the accuracy, reliability, and sources of the data. 5. and Social 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 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. Evaluates impacts and risks from associated facilities and other third party activities. Examines global, transboundary, and cumulative impacts as appropriate. 6. Analysis of Alternatives: compares reasonable alternatives to the proposed project site, technology, design, and operation in terms of their potential environmental and social impacts; the feasibility of mitigating these impacts; their capital and recurrent costs; their suitability under local conditions; and their institutional, training, and monitoring requirements. States the basis for selecting the particular project design proposed and justifies recommended emission levels, including where relevant for greenhouse gases, and approaches to pollution prevention and abatement. 7. Management Programme: consists of the set of mitigation and management measures to be taken during implementation of the project to avoid, reduce, mitigate, or remedy for adverse social and environmental impacts, in the order of priority, and their timelines. May include multiple policies, procedures, practices, and management plans and actions. Describes the desired outcomes as measurable events to the extent possible, such as performance indicators, targets or acceptance criteria that can be tracked over defined time periods, and indicates the resources, including budget, and responsibilities required for implementation. Where the buyer/project sponsor identifies measures and actions necessary for the project to comply with applicable laws and regulations and to meet the international standards applied to the project, the management programme will include 182

185 an Action Plan, which is subject to disclosure to the affected communities and on-going reporting and updating. 8. Appendices: List of ESIA report preparers individuals and organisations. References written materials, both published and unpublished, used in study preparation. Record of interagency and consultation meetings, including consultations for obtaining the informed views of the affected communities and/or their legitimate representatives and other interested parties, such as civil society organisations. The record specifies any means other than consultations (e.g. surveys) that were used to obtain the views of affected groups. Tables presenting the relevant data referred to, or summarised in, the main text. Associated reports, audits, and plans (e.g. Resettlement Action Plan or Indigenous Peoples/ Natural Resource Dependent Community plan, community health plan). Action Plan that (i) describes the actions necessary to implement the various sets of mitigation measures or corrective actions to be undertaken, (ii) prioritises these actions, (iii) includes the time-line for their implementation, and (iv) describes the schedule for communicating with affected communities when on-going disclosure or consultation is expected. * This Annex is based on the IFC Guidance Notes: Performance Standards on Social and Sustainability of 31 July 2007; however, for the purposes of this Recommendation, the text has been adapted. Q39. In cases where the project may have significant impacts on local residents around project site, should interviews with the affected people be conducted during the project site visit in environmental review? A39. The project sponsor is responsible for environmental and social considerations for the project, and NEXI confirms such considerations. Response to the project stakeholders including the affected people should be made primarily by the project sponsor. NEXI is, through its environmental review, to check and confirm if the appropriate response is made. As part of such confirmation procedure, when the people are significantly affected by the project because it involves large-scale involuntary resettlement or because indigenous people live near the project site, and when the stakeholders directly send their opinions to NEXI, we will conduct interviews if NEXI finds it necessary to do so on a case-by-case judgment. Q40. The Guidelines require disclosure of an and Social Impact Assessment (ESIA) report, but in some countries the disclosure of the ESIA reports is not legally required. How will NEXI deal with this issue? A40. In the case of a project in a country that does not legally require the ESIA disclosure, NEXI would like to work on the project sponsor via the applicants to disclose further information. 183

186 6. Decision-making Q41. How will results of environmental reviews be used in the decision-making/insurance contract process? A41. NEXI may take the following actions based on the results of environmental reviews. (1) Regarding a project which may adversely affect the environment, NEXI may ask the relevant project sponsor, via the Applicant, to take appropriate action. (2) NEXI may refuse insurance coverage for projects which NEXI does not consider beneficial to the sound development of Japanese foreign trade, or economic improvement in the project countries. (3) NEXI may incorporate additional conditions into the insurance policy which are regarded as necessary to ensure the project sponsor's environmental and social considerations. Q42. The Guidelines paragraph 4. states, in exceptional cases where, given the nature of the project, documents necessary for environmental reviews are not available at the time when the decision on the commitment issuance is required, NEXI may make a decision on the commitment issuance based on the condition that it will undertake the environmental reviews after the commitment decision. Specifically, in what cases and in what procedures is this stipulation applicable? A42. For example, there may be a case of acquisition of rights and interests in the early stage of a natural resource development project. In this case, NEXI will classify the categories of the project based on the information obtained from the Applicant. If the project is classified as A or B, environmental and social considerations are ascertained in the following processes. <Before Decision-making> Although sufficient materials are not obtainable for conducing environmental reviews, arrangements on environmental and social considerations are ascertained to the extent possible based on the information obtained through the Applicant. The information used for confirmation is disclosed to the public to the extent possible in addition to the information written in the screening form, while taking account of confidential matters in business. The result of the confirmation will be posted on our website immediately after the signing of the insurance contract although the result is provisional. NEXI will explicitly stipulate in the Special Clauses, etc. that development will not be made in the project until the environmental reviews indicated below are conducted. [After Decision-making] After we receive documents necessary for environmental reviews such as and Social Impact Assessment (ESIA) report, we conduct our ordinary environmental reviews. The ESIA report used for the environmental reviews and the environmental review results are disclosed on the website in an ordinary way. Also, if appropriate environmental and social considerations have not been confirmed at the environmental reviews, NEXI may cancel the commitment based on the Special Clauses, etc. or may terminate the insurance contract if the insurance contract has been signed already 184

187 7. Monitoring Q43. What is the purpose of monitoring? How will you respond to the results of monitoring? A43. Although monitoring is conducted by the project sponsors themselves, NEXI considers monitoring to be important in assessing whether planned measures have been steadily implemented, whether these measures are adequate, and whether any unforeseen changes in external conditions have caused adverse impacts on the environment. As for A or B projects, NEXI also confirms the monitoring results of the project sponsors through the Applicants with regard to important issues during the certain period. If any problems are found as a result of monitoring, NEXI will encourage the project sponsor, via the Applicant, to take appropriate action. Q44. Specifically, how will NEXI confirm the important items of the monitoring results? A44. NEXI does not think it is appropriate to pre-determine the specific items or period and they should be decided by taking into account various factors including sector, nature and characteristics of the project, and conditions in the surrounding areas. To cite a few items requiring: Permits and approvals, explanations (Response to matters indicated by authorities) Anti-pollution measures (Air quality, Water quality, etc.) Natural environment (Ecosystems etc.) Social environment (Resettlement etc.) These are described in advance, under s Requiring Monitoring in Appendix 3 of the Guidelines. 8. Disclosure of Information Q45. What is the idea underlying the provision on information disclosure under the Guidelines? A45. NEXI works to maintain a good balance between two principles: information disclosure and business confidentiality. Disclosure of information is very important in ensuring sustainable project implementation and management while giving due consideration to the environment, as well as in ensuring the accountability of the project sponsor and NEXI. On the other hand, private business transactions deserve special consideration in connection with confidentiality. Thus, NEXI strives to promote disclosure, while recognizing business confidentiality. Q46. Where does information disclosure under the Guidelines stand in relation to information disclosure under the Law Concerning Access to Information Held by Incorporated Administrative Agencies, Etc. (the Information Disclosure Law )? A46. NEXI determines whether or not it should disclose information it possesses under the Information Disclosure Law, upon request for disclosure by a member of the public. In contrast, under the Guidelines, NEXI provides, on its own initiative, important information on screening and environmental review, and thereby secures the transparency and accountability of its business operations; it also encourages third parties, including related agencies and stakeholders, to provide information. Q47. Are information disclosure provisions of the Guidelines in line with OECD Common Approaches? A47. OECD Common Approaches provides that, for A projects, Members should disclose information on the project, and seek to make information such as ESIAs publicly available. In addition, subject to the legal provisions on public disclosure in Members countries, Members should make available to the public at least annually environmental and social information on projects classified in A and B for which a Member has made a final commitment with respect to providing official support. In principle, NEXI also requests the project sponsors to disclose information on the project in the project country. NEXI itself will take applicant business confidentiality into account, and disclose information on environmental and social considerations at the same time. 185

188 Q48. Do the Guidelines stipulate any sort of information disclosure to be made during the stage of monitoring too? A48. The Guidelines stipulate that the monitoring results made by the project sponsors should be disclosed on NEXI Website to the extent that the information has been disclosed to the public in the project country. The Exhibit 1 (9) of the Guidelines states, It is desirable that project proponents make the results of the monitoring process available to project stakeholders, so as to encourage project sponsors to take action. Q49. The Guidelines paragraph 6. states, NEXI will strive for further information disclosure through its environmental review and monitoring by encouraging the project sponsors through the Applicants. Specifically, what information do you have in mind? A49. We would like to encourage disclosure of information on overall environmental and social consideration in the project. Such information will include Japanese and English translations of ESIA report (if it was developed in a local language) and results of monitoring conducted by the project sponsor. Q50. What is the timing of information disclosure and what is included in the disclosed information? A50. The Guidelines stipulate that upon completion of the screening of a project, NEXI discloses, as soon as possible and in a manner that allows enough time before decision-making on covering by NEXI. Specifically, when screening of a project has been completed, NEXI discloses on its website, the project name, country, location, outline of the project, sector of the project, and its category classification, as well as reasons for the classification. In the case of projects classified as A and B projects, NEXI discloses an ESIA report and notifies its receipt on its website upon receipt as well as documents generally disclosed to the public in the project country out of the documents other than the ESIA reports, etc. obtained by NEXI from the Applicants for confirming environmental and social considerations. The environmental review results regarding the A and B projects are disclosed on NEXI s website upon insurance contract conclusion. NEXI must take into account competitive relationships of Applicants when disclosing information. Information connected to the commercial confidentiality of the Applicants, such as the name of the specific project company, insured amount, and type of insurance, is not disclosed on the website. Q51. The Guidelines paragraph 6.(2) states, Of the documents other than the ESIA reports, etc. obtained by NEXI from the Applicants for confirming environmental and social considerations. What kinds of documents does this refer to? A51. As applicable documents, there are documents with a variety of names, contents and formats, depending on the characteristics of each project. For example, such documents could include but not limited to, environmental management plans, resettlement action plans (including livelihood restoration plans if necessary) for projects in which large-scale involuntary resettlement or large-scale loss of means of livelihood is expected, and indigenous peoples plans (in projects which have an effect on indigenous peoples). In the event that translations of such documents, including the ESIA report etc., are obtained from the Applicants, these are also applicable. Q52. Can't environmental review results be disclosed at an early date? A52. As the insurance contract terms and conditions may include conditions that have important bearing on the environment, NEXI thinks that the timing of final decision on issuance of commitment based on the results of environmental review occurs at the stage of signing of an insurance contract. In this light, environmental review results are disclosed after the signing of an insurance contract. Q53. Will the insurance contract be made public after its signing, just like results of environmental review? A53. Insurance contracts will not be disclosed, due to the need to maintain the Applicant s commercial confidentiality. 186

189 Q54. How long will be the disclosure period for screening and environmental review results? A54. It is difficult to set a uniform disclosure period for all the projects. This is because NEXI gets involved in projects at different timings, and it is necessary for NEXI to respond flexibly to the development of private-sector business. For A projects that are likely to have a significant adverse impact on the environment, however, NEXI will make an effort to disclose information on screening results for about 45 days, drawing on examples of other countries. No specific disclosure period is set for environmental review results. Q55. Isn't it inappropriate to exempt some information from disclosure on the grounds of business confidentiality? A55. Since policyholders (the insured) of NEXI insurance are private businesses, it is essential to consider their commercial confidentiality. Thus the Guidelines state, Any information that is excluded from public disclosure in the contract between NEXI and the Applicants may only be disclosed either with the agreement of the Applicants or in accordance with legal requirements. Q56. In many cases, the local residents affected by the project may have no access to the NEXI website. How can these people obtain information on the project? A56. The Exhibit 1 (5) of the Guidelines defines the principle of environmental and social considerations required for the project, and stipulates sufficient consultations with stakeholders, such as local residents, must be conducted via disclosure of information from an early stage when alternative proposals for the project plans may be examined. NEXI ensures adequate disclosure of information made by the project sponsor to the local residents. 9. Ensuring Compliance with the Guidelines Q57. The Guidelines stipulate, In order to ensure its compliance with the Guidelines, NEXI accepts objections regarding its non-compliance with the Guidelines, and takes the necessary action. Specifically how will NEXI take necessary action? A57. With regard to the procedures for objections, please see Procedures for Submitting Objections on Guidelines of and Social in Trade Insurance ( Objections Procedures on Guidelines ), established on September 4, The complete procedures are available on the NEXI website. Q58. Is it possible to submit objections before conclusion of the insurance contract concerned? A58. Before conclusion of an insurance contract, when the project contract concerned has not yet been awarded officially, Objections Procedures could be abused and could result in impeding fair competition. In order to avoid such risks and disadvantages in competition with other foreign countries, objections are accepted only after the relevant insurance contract is concluded. If an outside person submits comments on non-compliance with the Guidelines to the Examiner before conclusion of the insurance contract, however, the following procedures will be taken so that an appropriate treatment will be given concerning social and environmental considerations: The Examiner will transfer the comments to NEXI's underwriting section and environment group, if necessary, and the underwriting section will then report to the Chairman and the Examiner on the results of its investigation. In addition, if an outside person makes a charge of significant non-compliance by NEXI with the Guidelines, NEXI will comprehensively take into account the magnitude of the impact of the project concerned on the environment and society, the possibility for the project to impact, and benefits of the project, based on report by the NEXI underwriting section. The Examiner may subsequently be asked to investigate the possibility of NEXI's non-compliance based on only the applicable part of the Procedures for Objections. These procedures are within the scope of the Chairman's authority. 187

190 10. Supplementary Provisions Q59. How do you plan to review the Guidelines? A59. As the Supplementary Provision of the Guidelines indicates, the Guidelines will be reviewed when necessary taking into account future review progress of the Common Approaches or the results of comprehensive review based on the confirmation on the implementation status of the Guidelines. The Guidelines will be reviewed as necessary as well as the timing when Japan Bank of International Cooperation (JBIC) revises the environmental guidelines that are similar to NEXI s. The Supplementary Provision of the Guidelines also states, if it is deemed necessary to make the Guidelines consistent with the Common Approaches or if a change is deemed be a minor change, the Guidelines may be reviewed based on the premise that transparency will be ensured. As specific procedure, we disclose the draft revision on the website and have opportunities to seek opinions of stakeholders through, for example, briefing session or public comment. Q60. The Guidelines revised in January 2015 will be applied from April Will the said Guidelines be applied to projects for which screening forms have been accepted before April 2015? A60. The previous Guidelines apply to projects where screening forms have been accepted before March 31, The most recently revised Guidelines are applied to projects where NEXI accepted screening forms on and after April 1, Others Q61. The Exhibit 1 (1) of the Guidelines states,...a committee of experts may be formed to seek their opinions, in order to increase accountability. Does this mean NEXI may form a committee of experts to seek the opinions of outside experts? A61. NEXI believes that the process of seeking experts' opinions should take place as part of the environmental and social considerations made by project sponsors. Establishment of a committee of experts is thus stipulated in the Exhibit 1 of the Guidelines, and Social Required of Covered Projects. Q62. Who bears the expenses for environmental review? A62. In the case of a large-scale project in an environmentally sensitive sector, a project in an environmentally sensitive area such as a coral reef or mangrove wetlands, or a project with sensitive characteristics, such as one involving large-scale involuntary resettlement, in which environmental reviews by outside experts may be required, the Applicant may be required to bear the cost associated with this review. reviews will be carried out in a manner to minimize the Applicant's burden. Q63. In the Guidelines, the phrase "when necessary" is sometimes used. Why is it used? A63. The Guidelines are intended to cover a whole range of projects containing different elements, such as type of insurance facilities, the nature of each project, and the timing of NEXI involvement. It is almost impossible, not to mention impractical, to cover all potential projects in the Guidelines. It is more appropriate to deal with different projects on a case-by-case basis, rather than include them in the Guidelines, and that is why the phrase when necessary is sometimes used in the Guidelines. 188

191 Q64. Regarding nuclear power plant projects, how are checks for ensuring safety and so on, in the export of nuclear power generation-related materials and equipment, being carried out? A64. When considering insurance coverage for projects in which equipment and materials related to nuclear power generation are exported, NEXI requests that the Ministry of Economy, Trade and Industry perform a check of the considerations pertaining to safety assurance and so on, in the corresponding export project. The Ministry of Economy, Trade and Industry checks that the export is carried out based on appropriate safety considerations from the perspective of safety, radioactive waste and nuclear accident measures so that the project will not lead to nuclear accident or inappropriate disposal of nuclear waste in the export destination. * A check of the considerations pertaining to safety assurance and so on is now discussed in Japanese government. And based on the result of the discussion, where necessary, NEXI will review this FAQ. Q65. Please provide specific points to be checked in safety and other perspectives by the Ministry of Economy, Trade and Industry. A65. The Ministry of Economy, Trade and Industry checks the following three points; (1) Whether the partner countries and regions have systems in place so that safety regulations can be appropriately implemented. (2) Whether the partner countries and regions have accepted and observed international agreements that are provided for the purpose of ensuring safety. (3) Whether the manufacturers of the export equipment have a clear perception that it is their responsibility to ensure quality and long-term maintenance, as well as to carry out the related training programs for the exported equipment. * A check of the considerations pertaining to safety assurance and so on is now discussed in Japanese government. And based on the result of the discussion, where necessary, NEXI will review this FAQ. 189

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193 Guidelines on and Social in Trade Insurance - January Nippon Export and Investment Insurance (NEXI) Group, Credit Department East Wing 3 rd floor, Chiyoda First Building, Nishikanda, Chiyoda-ku, Tokyo Japan Phone Fax URL

194 Nippon Export and Investment Insurance Chiyoda First Building, East Wing 3 rd Floor Nishikanda, Chiyoda-ku, Tokyo Japan