Environmental & Social (E&S) Safeguards Guidelines
The primary purpose of this section is to provide an overview of the overarching guidelines, policy and legal requirements relevant for PPP projects. See the general E&S Safeguard guidelines and legal documents here below:
- Environmental impacts arising from construction and operation of PPP Projects can either be positive or negative.
- Assessment of the environmental feasibility is therefore necessary.
- In our case we require compliance with local laws – National Environmental Management Agency (NEMA) requirements as well as world bank environmental standards.
- Environmental and Social Impact Assessment (ESIA) is also important for project bankability. Most lenders such as the World Bank are very sensitive about the environmental and social impacts of a project.
- The ESIA will also cover site conditions such as does the site have any encumbrances?
- The PPP Act, 2021 requires Project Sponsors to give priority to locally available workforce, services and supplies and the systematic development of mechanisms for technology transfer.
- A “local content clause” needs to be included in a project agreement (s.83)
- The PPP Committee, on the advise of the PPP Directorate to issue local content guidelines, practice notes and standards. Entrenchment of local content in the development of PPPs.
- Directorate will formulate local content guidelines which will provide clarity on implications for investors.
