ATI Environmental Manual

AFRICAN TRADE INSURANCE AGENCY
ENVIRONMENT OPERATIONS
MANUAL
All Rights Reserved. No part of this manual may be reproduced or

distributed in any form or by any means, or stored in a data base
or retrieval system, without prior written permission from the
African Trade Insurance Agency (ATI).
Draft 2 Environmental Operation Manual - BEA 1
TABLE OF CONTENTS
Abbreviations and definitions 2
CHAPTER 1 INTRODUCTION
1.1 Background 3
1.2 Objectives and tasks of the ATI 4
1.3 Why Environmental Assessment? 5
1.4 Summary of steps to be taken 6
CHAPTER 2 THE PROCESS OF ENVIRONMENTAL REVIEW AND ASSESSMENT

2.1 General principles 9
2.2 Tasks of the different parties in the process 10
2.3 Response schedules 13
CHAPTER 3 ENVIRONMENTAL SCREENING

3.1 Principles of screening 16
3.2 Screening categories 17
CHAPTER 4 ENVIRONMENTAL SCOPING

4.1 Principles of scoping 22
4.2 Defining TOR and choice of environmental instruments 22
CHAPTER 5 ENVIRONMENTAL ASSESSMENT

5.1 Guidance on Environmental Assessment 24
5.2 The Environmental Assessment Process 26
CHAPTER 6 MANAGEMENT AND MONITORING

6.1 Principles of Management and Monitoring 30
CHAPTER 7 COUNTRY SPECIFIC NATIONAL ENVIRONMENTAL REGULATIONS

7.1 Burundi, Country Specific National Environmental Regulations 32
7.2 Malawi, Country Specific National Environmental Regulations 33
7.3 Kenya, Country Specific National Environmental Regulations 35
7.4 Rwanda, Country Specific National Environmental Regulations 37
7.5 Tanzania, Country Specific National Environmental Regulations 37
7.6 Uganda, Country Specific National Environmental Regulations 40
7.7 Zambia, Country Specific National Environmental Regulations 43
References and Acknowledgements 45
ANNEXES
A.1 Environmental Information Note (EIN) 1
A.2 Sample format of an Environmental Assessment Report 5
A.3 Sample format of an Environmental Management Plan 6
A.4 Sample format of an Environmental Audit Report 8
A.5 Sample format of a Project Specific Major Hazard Assessment 10
A.6 Guidance for Preparation of a Public Consultation and Disclosure Plan 11
A.7 Information on Multilateral Environmental Agreements 13
A.8 List of excluded goods and products 16
A.9 List of National designated Institutions responsible for EA 17
A.10 Country information relating to the Prior Informed Consent mechanism 18
Abbreviations and Definitions

ATI African Trade Insurance Agency
CBD Convention on Biological Diversity
CITES Convention on International Trade in Endangered Species
EA Environmental Assessment: Analytical tool used to anticipate potential impacts of
particular activities on the environment and on human livelihood
EAP Environmental action plan: An instrument, which provides details of the measures to be
taken during the implementation and operation of a project to eliminate or offset adverse
environmental impacts or to reduce them to acceptable levels. Included are the actions
needed to implement them.
EBRD European Bank for Reconstruction and Development
EIA Environmental Impact Assessment: Comprehensive analytical effort designed to anticipate
environmental impacts of major projects having the potential to have significant, diverse
and irreversible impacts on the natural environment and on humans dependent on that
environment
EIN Environmental Information Note, see Annex 1
EIS Environmental Impact Statement: Comprehensive analytical effort designed to anticipate
environmental impacts of major national activities affecting the global commons outside of
the jurisdiction of any nation
EMP Environmental Management and Monitoring Plan: Systematic program designed to
prevent, mitigate and monitor anticipated environmental and related human impacts of
prospective and ongoing activities. Sometimes called an Environmental Action Plan (EAP)
ER Environmental Review
FAO Food and Agriculture Organisation
FI Financial Intermediary: Investment Fund, bank insurance agency or other financial
institution that lends directly to projects or investment funds.
UNFCCC United Nations Framework Convention on Climate Change
GMO Genetically modified organism
IFC International Finance Corporation: Affiliate of the World Bank group that makes loans to
and investments in private sector projects in developing countries and emerging markets
LCA Life cycle analysis
LEA Limited Environmental Assessment
LMO Living genetically modified organism
MHA Major Hazard Assessment: Analytical tool used for identifying, analysing and controlling
potential major hazards to human health and safety resulting from storage and processing
of toxic and hazardous substances
MEA Multilateral environmental agreement
NEAA National Environmental Assessment Authority
NGO Non-governmental organisation
PPHA Pollution Prevention and Abatement Handbook
ERA Environmental risk assessment: An instrument for estimating the probability of harm
occurring from the presence of dangerous conditions or materials at an installation. Risk
represents the likelihood and significance of a potential hazard being realised
PIC The Rotterdam Convention on the Prior Informed Consent: Procedure for Certain
Hazardous Chemicals and Pesticides in International Trade
POP Convention on the Control of Persistent Organic Pollutants
RTFP Regional Trade Facilitation Project
UPOV International Convention for the Protection of New Varieties of Plants
UNEP United Nations Environment Programme
WB World Bank: The International Bank for Reconstruction and Development
CHAPTER 1 INTRODUCTION
1.1 Background
1.1.1 The Common Market for Eastern and Southern Africa (COMESA) Treaty envisions a fully
integrated internationally competitive regional economic community. Within this vision, the
mission of COMESA is to achieve increased co-operation in all fields of development. A strategic
focus of COMESA over the next 3 to 5 years is i.a. to promote regional integration through trade
development and investment promotion.1
1.1.2 Even if several countries in the region have pursued a sound economic policy for many
years, thus creating a stable macroeconomic and investment friendly environment, the availability
of trade finance for productive activities is severely constrained. Assessments of this situation are
indicating a perception of high risk associated with Africa as a whole and with individual
countries. The risk is mostly associated with government behaviour and political events such as
wars and civil turmoil.2
1.1.3 The Regional Trade Facilitation Project, (RTFP), supported by the World Bank, aims to
address this problem by bringing together a core group of African countries that are willing to
challenge this perception by setting up a credible insurance mechanism against losses caused by
political risks. The governments of these countries agree to be the ultimate risk takers in the
mechanism, thus creating a strong disincentive to cause claims and strongly enhancing its
credibility in the market. COMESA has requested World Bank Group financing and technical
support to design, prepare and implement the RTFP. The governments of Burundi, Malawi,
Kenya, Rwanda, Tanzania, Uganda and Zambia have endorsed the project to improve the
situation for trade and investment in the region.
1.1.4 One of the prerequisites of the World Bank Group support, is that the facilitating institution
– the African Trade Insurance Agency (ATI) takes into account the requirements of
environmentally sound and sustainable practices as identified in laws and regulations of
participating countries, and the policy of the Bank on environmental assessment.3 This policy will
be adopted by the ATI, and procedures for screening and assessment of transactions seeking
insurance cover will be presented in this manual.
1.1.5 A mandatory screening /assessment of the proposed transactions will cover a wide spectre
of potential environmental impacts. The procedure and instruments of assessment will rely on
national environmental laws or regulations and must meet these relevant requirements prior to the
approval of an application for cover. For countries without suitable environmental standards and
environmental assessment procedures, World Bank policies and guidelines will apply.
1.1.6 As a financial intermediary, the ATI is responsible to the World Bank for the transactions
they support. ATI will therefore make an independent environmental review of all applications,
before it is sent to the World Bank for “no objection”
1
http://www.comesa.int/comesaqa.htm
2
http://www.worldbank.org/pics/pid/3a63683.txt
3
OP 4.01, Environmental Assessment, January 1999
1.2 Objectives and tasks of the African Trade Insurance Agency

1.2.1 The objective of ATI, as a new pan-African multilateral agency, is to provide insurance and
guarantees for purposes of trade, investments and other productive activities in Africa. ATI will
address the lack of political risk cover by implementing the Regional Trade Facilitation Project
(RTFP), which will develop a leveraged political risk insurance scheme covering export and
import transactions into, within and from the African region.
1.2.2 The term “political risks” is usually taken to mean events, actions or omissions that are
outside the control of the parties in a commercial transaction, and are here understood as breaches
of undertaking and agreements on the part of a government.4 This might be government
performance risks on the one hand or war, civil disturbance and embargo risks on the other hand.
1.2.3 ATI issues insurance policies for overseas entities or entities in a participating African
country that has financial exposure related to productive activity in another participating country
or a third country, such as suppliers of goods and services on credit terms. It is anticipated that
this service will play an important role in generating exporter confidence and therefore lead to
growth in foreign trade.
1.2.4 Since the purpose of the RTFP is to stimulate productive activity, any type of financial
exposure, other that equity investments, that promotes or allow for this effect, is eligible to
support. Notwithstanding this, it is anticipated that there will be a number of common types of
transactions that will represent most of the applications submitted for cover under this facility. As
general examples of common or typical transactions may be:
Sale of goods on credit terms Import of goods to stock;

Sale of goods on credit terms; Import of goods for processing
Financial and operational lease; and subsequent export; and
Import of capital equipment Commercial loans.
1.2.5 More specifically, requests for insurance cover might be related to:
o A three year financial lease of trucks for purpose of carrying timber logs;
o Sale and commissioning of mini hydro electric plant on five years payment terms;
o Import by a contractor of equipment used to pave airport;
o Import of fabric by garment supplier for conversion into garments
o Confirmation of a 60 day letter of credit for supply of raw materials to manufacture beer;
o Supply of generator on three year terms for use in hotel;
o Sale of oil on 60 days credit terms;
o 12 month bank loan for working capital for manufacture of soap;
o 5 year bond issue by medium sized Kenyan company to finance plastic extrusion plant;
o Sale of copper ore by a Zambian company to a Kenyan buyer on 60 days terms.
1.2.6 The transactions and their operative setting must be explained to be able to determine the
appropriate environmental category and best assessment instrument. The lease of trucks might be
related to a project with a valid logging concession that has undergone a previous EA. The issue
at hand will be if the new trucks make a difference compared to the existing permits and
conditions for the concession. Use of the oil to be sold, will be decisive. If it will be used for
4
ATI Operation Manual, Exports and Imports Facility chapter 3
purposes of warfare it is obviously not acceptable. If it will be used in a highly polluting facility,
it will also be ineligible. For use in a nationally licensed power plant, the import of oil should,
however, normally be a C transaction. For manufacturing of soap in an existing localisation, one
might need to establish information on past or present concerns for health, safety risks and
liabilities associated with the manufacturing and an environmental audit might be appropriate.
1.2.7 Where the insurance policy involves a credit period, the RTFP will normally not support
credits with repayment periods longer than the production cycle or the revenue producing
capacity of the item being financed. Otherwise the finance is not trade finance, but general
working capital finance. Any environmental impacts of ATI’s activities is expected to be of a
more indirect nature, associated with the application of the goods or services being
imported or exported.
1.2.8 The ATI will have a qualified environmental officer who will be responsible for the
environmental screening, assessment and monitoring of transactions.
1.3 Why environmental assessment?

1.3.1 The productivity of land and waters and the sustainability of ecosystems are together with a
socially acceptable livelihood, a prerequisite for a sound development of communities and
nations. An increasing number of countries have therefore introduced environmental assessment
(EA) procedures as an instrument for protecting its environment and peoples from the adverse
impacts of economic activities of different kinds.
1.3.2 EA is a process where a proposed activity is assessed with regard its impacts on the physical
and biological environment, human health and safety, social and cultural heritage aspects as well
as transboundary and global effects. The objective is to identify positive and negative impacts of
the activity, and make sure that its negative consequences are prevented, minimised or mitigated.
Figure 1. Simplified overview of an EA process
Screening. If this activity causes environmental impacts, what

is the likely seriousness of these impacts?
Scoping. What are the main issues for the focus of a study? What
are the geographical area of influence and the timing of influence?
Definition of Terms of Reference.
EA report: Analyse the scope and nature of the impacts, the need for
permits, public response to the activity, possible modifications, mitigation
of impacts and need for monitoring schemes where appropriate
Review of EA report by designated authorities, public consultation and

possible monitoring schemes
Approval: ATI send the application and summary of EA report to the World
Bank for ”no objection”
1.2.3 Inadequate attention to environmental issues might lead to serious failures in economic
performance. Environmental charges, fines, clean-ups, mitigation and other damage
compensation costs might cause serious financial risks to otherwise successful businesses. These
risks are associated not just with direct financial losses and degradation of common resources, but
also with serious damage to the image and reputation of the involved parties.
1.4 Summary of steps to be taken for an environmental review of

transactions
I. The applicant will complete the Environmental Information Note (EIN)
1.4.1 The traded products or services to be insured by the ATI, as well as their intended use, must
satisfy national and World Bank environmental requirements. The applicant will present to the
ATI, through completion of the EIN enclosed as annex 1, all pertinent environmentally related
information about the trade transaction, as well as information about the need for permits,
licences, etc. that might be required.
II. The ATI will determine the environmental category of the transaction
1.4.2 Based on a delegation of authority from the member countries, the ATI will categorise the
transaction in accordance with guidelines in this manual, see chapter 3. If in doubt, consultations
will be made with the national environmental assessment authority (NEAA). The choice of
category will have the following implications:
Category A-transaction: There are potential significant environmental issues associated with
the products/services as such, or the use of these, requiring attention going beyond assurance
of compliance with environmental standards. The application will be forwarded to the NEAA
who will advise and guide the applicant on performing an environmental assessment (EA).
Category B-transaction: The products/services or the use of these may have environmental
implications. The ATI require the applicant to obtain all necessary environmental licences
and/or permits needed before applying for insurance. The application will be forwarded to the
NEAA for verification of licences/permits and for consideration of the need for additional
environmental assessment. If licences/permits are deemed valid and no further assessment
required, the NEAA will issue a “no objection” letter. The ATI will have the authority to
issue a policy of insurance subject to confirmation by the NEAA that the applicant is in
compliance with relevant laws and regulations and that no further assessments are needed.
The insurance policy might therefore be issued prior to hearing back from the NEAA, but the
policy will be conditional, pending on the issuance of “no objection” from the NEAA.
Category C-transaction: There are no foreseeable or negligible environmental impacts
associated with the products/services. The ATI will, based on a delegation of authority from
member countries, go ahead with the application with a notification to the NEAA.
Category D-transaction: The products/services are in violation of international environmental
law, national laws and regulations, or World Bank policies. The transaction is not eligible for
insurance cover under the ATI. The NEAA will be notified.
1.4.3 The ATI may, on the basis of a bilateral agreement, assume the duties of a NEAA if a
member country is without current satisfactory environmental legislation, standards or assessment
procedures.
III. The ATI will request a “no objection” letter from the World Bank
1.4.4 The ATI will only provide insurance for a category-A transaction if the EA process is
considered adequate. If ATI later finds that key EA requirements have been violated, the
insurance cover might be declared void. This might also be the case in situations where the
applicant has given inappropriate or misleading information leading to a wrong classification.
1.4.5 The ATI will need to make sure that the appropriate national requirements are met and that
the transaction meets the standard requirements of the World Bank. ATI will also reserve its right
to demand further information or action to satisfy environmental requirements. When information
and/or mitigation measures are regarded as satisfactory, ATI will send a recommendation to the
World Bank to request a “no objection” response.
Figure 2 Main procedural steps for environmental clearance
The applicant will complete the Environmental Information Note (EIN) and send to the ATI
The ATI will screen the transaction and determine its appropriate categorisation
Category A Category B Category C Category D
The ATI will The ATI will

forward forward application
application to the to the NEAA who
NEAA. The consider if permits/
applicant must licences are valid
abide by the and if further
regulations of the assessments are
NEAA, and required.
prepare an EA.
The ATI need the The ATI need a ”no No further The
NEAA to forward objection” from the environmental transaction is
a completed and NEAA to issue a analysis is not eligible
accepted EA- final insurance, but needed. The ATI for insurance
report to further may issue a can proceed with cover. ATI
assess and process conditional insurace consideration of rejects the
the application. before this response. the application. application
ATI will make sure that the appropriate national requirements are met and that the transaction meets
the standard requirements of the World Bank, and then forward the application to the World Bank
for ”no objection”
CHAPTER 2
THE PROCESS OF ENVIRONMENTAL REVIEW AND ASSESSMENT
2.1. General principles
2.1.1 A significant part of the World Bank's investment in its countries of operations is
channelled through financial intermediaries (FI’s) who act as the Bank's vehicles to provide
funding mainly for the small and medium-sized enterprise sector. They include regional, national
and sectoral investment funds, banks, insurance and leasing companies, and other financing
mechanisms. The Bank needs to ensure the proper implementation of its environmental mandate
in its FI operations while respecting the principle of delegated responsibility, which characterises
such operations. The ATI is therefore required to adhere, at a minimum, to the following basic
requirements:
1. The ATI will have to develop and implement environmental procedures satisfactory to
the Bank and integrate them as fully as possible into its application appraisal and
monitoring procedures.
2. The ATI will have to comply with the Bank's Environmental Exclusion List for FI’s. This
list includes activities prohibited by international environmental agreements or where the
Bank considers indirect financing inappropriate because of the significance of associated
environmental risks.
3. The ATI will have to submit to the Bank periodic reports on the implementation of its
environmental procedures and the environmental performance of its insurance portfolio.
2.1.2 Transactions applying for insurance cover under the ATI must comply with national laws
and regulations, in countries to which the goods or services are transferred. The state of
development of national legislation, standards and regulations relating to environmental
assessments are, however, highly variable. While some countries have established comprehensive
legislation and procedures for assessment of activities, others have a weaker or even missing
environmental legislative setting. Chapter 7 offers more information on the situation in the
individual countries. Some of the participating countries are in the process of harmonising their
environmental laws and development of common environmental standards.5
2.1.3 The ATI will have a qualified environmental officer who will deal with the environmental
aspects of applications and monitoring of issued insurance policies. He/she will co-operate
closely with national environmental assessment authorities (NEAA’s), and as a main rule, deem
the environmental impacts acceptable if the products/services or their application, comply with
national environmental legislation, standards or other national environmental requirements.
2.1.4 Based on a delegation of authority from the member countries of the facility, the ATI will
screen the information given by the applicant, determine the categorisation of the transaction and
submit the result to the NEAA in a note of orientation. Only when transactions are categorised as
5
UNEP/UNDP/Dutch Joint Project on Environmental Law and Institutions in Africa, ref.
[email protected]
A or B, or in situations of uncertainty, will the NEAA be asked to participate in the further

assessment procedure.
2.1.5 Countries are protecting their environmental resources, public health and seek to pursue a
sustainable development path through a variety of means. Of the greatest relevance to the
environment-trade interface, are the environmental standards—particularly those imposed on
traded goods. A large number and variety of standards, from extracting raw materials through
manufacture, transport, trade, sale, use and disposal, often in combination rather than alone, may
create difficult control and management structures. Effective use of these instruments represent
therefore a challenge both for institutions dealing with facilitation of economic activities and
trade as well as institutions responsible for protection of environmental values. The most common
concepts may be grouped under five headings.6
Table 1 Most common group of standards
Environmental quality standards can be concentrations of different substances in air, water

or soil. They can also be “critical loads” of deposition of pollutants below which, environment
is not seriously affected or they can be population standards, requiring the protection of
certain species that have become threatened or endangered.
Emission standards identify the amount of certain substances a facility may emit. Emission
standards can have a significant impact on production processes and is generally easier and
cheaper to avoid /minimise at the input side rather than at the output side of production
processes.
Product standards specify certain characteristics that are deemed necessary to avoid
environmental harm from the use or disposal of products. Product standards are often used to
protect human health.
Process and production standards specify how products are to be produced and what kind
of impacts the production may have on the environment. These standards are increasingly
internationalised and affect the setting of national standards.
Performance standards require certain actions, such as Environmental Assessment (EA),
which are expected to improve environmental management.
2.1.6 Many trade transactions will not need lengthy assessment procedures as they do not relate to
environmentally or socially sensitive issues or areas, or have impacts that are narrow in scope,
well defined, well understood, and straightforward to relate to certain predetermined performance
standards, guidelines, or criteria.
2.2 Tasks of the different parties in the process

2.2.1 The applicant must complete the Environmental Information Note (EIN) enclosed as annex
1 to this manual. The applicant or his/her environmental expert is required to provide all
information, necessary for a screening of possible direct and indirect environmental impacts of
the products/services and their intended use. Insufficient or misleading information might delay
the application process or, if discovered after the application has been processed, result in an
invalid insurance. This information will be sent to the ATI.
6
http://www.unep.ch/etu UNEP and IISD: Environment and Trade. A Handbook, 2000
2.2.2 If the applicant, during completion of the EIN finds that the transaction will be categorised
as a category D, he/she might save time and resources by discontinuing the application process. If
the transaction seems to be a category A, he/she should be aware that a somewhat time
consuming and costly environmental assessment (EA) is necessary before the application can be
further processed.
2.2.3 If the applicant finds that the activity may be modified or new information come available
before the approval, he/she is obliged to submit this information as soon as possible to the ATI,
who will decide if the chosen procedure should be changed.
2.2.4 The ATI will, based on this information, perform a screening as described in chapter 3, and
assign the transaction in question into one of four categories. There are five answers this
screening might give:
o Category A: There may be significant environmental and/or social impacts associated

with the products/services as such, or the use of these and an EA is needed. The
application will be forwarded to the NEAA who will advise and guide the applicant on
performing an environmental assessment (EA). If the transaction should be allowed,
mitigating measures may be required.
o Category B: The products/services as such or the use of these may have environmental
implications and may need permits or licences. The application will be forwarded to the
NEAA to verify licenses/ permits and seek advice whether additional assessment is
required.
o Category C: The products/services are perceived to have no or negligible
environmental impacts. An information note is sent to the NEAA, and the ATI will
continue to process the application.
o Category D: The transaction is not eligible for insurance cover due to international
and/or national environmental laws or regulations and/or excluded or goods or products
mentioned in this manual. An information note is sent to the applicant and the NEAA,
and the application process will be concluded.
o Need for more information: The information supplied was not sufficient for assigning
the product/services or its use to either of the categories mentioned above. The
application is returned to the applicant with directions for further information.
If category A ►
2.2.5 The applicant will communicate and co-operate with the NEAA for carrying out an EA.
Some countries have a prescribed application form, which must be completed before an EA may
be started. The applicant will need to hire an experienced consultant to carry the EA process
through and write a report. In most countries this consultant needs to be approved by the NEAA.
2.2.6 The applicant will need to perform a scoping as described in chapter 4. The scoping
process will identify the scale and character of the perceived impacts of the transaction and
suggest instruments of assessment and the terms of reference (TOR) for the EA process. The
suggested scope of assessment and draft TOR need to be approved by the NEAA. Involvement of
affected stakeholders through public disclosure and communication is also part of an EA
procedure, described in chapter 5 and 6, or according to special national regulations described in
chapter 7. The applicant will have to pay for the EA process.
2.2.7. The NEAA will need to decide if the scope of assessment and the TOR, as suggested by
the applicant, are acceptable. The NEAA should provide the applicant with the necessary
documentation, particularly on the legal and administrative requirements, relevant environmental

standards and applicable guidelines. In most countries, the issue of public participation in EA
processes is a shared responsibility between the applicant and the NEAA. The NEAA should
therefore participate actively with and guide the applicant in the process of public disclosure and
communications with affected groups and NGO’s. A guide is enclosed in annex 6.
2.2.8. After the NEAA has received the EA report, it will normally be made available to affected
stakeholders and NGO’s, and a public hearing will be held. On the basis of the final EA report, in
which the public response is taken into account, the NEAA will approve or disapprove of the
transaction, or in special cases, ask for more information. If appropriate, the NEAA will also need
to establish a monitoring schedule of mitigation measures.
2.2.9 The NEAA will, when satisfied send the EA report to the ATI with its approval.
If category B ►
2.2.10 For category B transactions, the environmental impacts are perceived to be moderate.
None of these impacts will be irreversible and remedial measures may be designed. The trade
transaction has a sound probability of being implemented, some times with modifications, extra
safeguards or mitigating measures.
2.2.11 It is the applicant’s responsibility to ensure that he/she has complied with national
environmental legislation and regulations. If an applicant states that he/she does not have the
necessary licenses/permits, ATI will advise the applicant to obtain these licenses before the
application may be processed.
2.2.12 The NEAA will receive the application and the EIN for verification of the validity of the
permits and/or licences obtained. The NEAA will also decide if the assessment of the
products/services and their properties relating to national/international environmental standards
represent a sufficient assessment, or if the application needs to go through a limited EA process
like a hazard or risk assessment. If there are no relevant national environmental standards in place
for a given product, but still reason for concern from a technical environmental point of view, the
NEAA should ensure that the applicant abide with relevant internationally recognised guidelines,
such as the Bank's Pollution Prevention and Abatement Handbook.
2.2.13 If the NEAA deems the applicant to be in compliance with national/international

legislation and no additional assessment is considered necessary, the NEAA will issue a letter of
“no objection”.
2.2.14 The ATI will have the authority to issue a policy of insurance subject to the “no objection”
letter from the NEAA. Thus the insurance policy might be issued prior to hearing back from the
NEAA, but the policy would be declared void if the NEAA states that the applicant is not in
compliance, or might remain conditional with approval of the NEAA.
2.2.15 If the information disclosed by the applicant is later revealed as erroneous, the related
insurance policy issued by ATI is void.
2.2.16 If the NEAA need to have a limited EA, it may, for example, be an environmental audit.
An environmental audit is carried out on existing plants and focuses on two elements: (a)
compliance of existing facilities and operations with relevant environmental (including
occupational health and safety) and social laws, regulations, and World Bank requirements; and
(b) the nature and extent of environmental impacts, including contamination to soils,
groundwater, and structures, as a result of past activities. A Corrective Action Plan is often an
outcome of an environmental audit. Such environmental reviews or assessments might however
take many forms, depending on the type of transaction proposed. Flexibility should be applied
and efforts made to find the best instruments and procedures for the transaction in question.
Sample contents of some limited environmental instruments are enclosed in annexes.
2.2.17 Although an application for necessary permits and licences will be forwarded by the ATI,
it is the applicant that is responsible for the information given, and who might be requested to
give additional information and/or must abide by other requirements as decided by the NEAA.
Further process►
2.2.16. The ATI will make sure that the national requirements are met and that the transaction
also meets the standard requirements of the World Bank.
2.2.17 The ATI will make every effort to review the material thoroughly and take public
comments into account. In circumstances where ATI confronts a particularly full project pipeline
or complex and difficult issues, ATI may contract outside expertise to enable it to complete the
review process in a timely manner. Any consultant hired to assist in the review would be required
to sign a confidentiality agreement to protect business sensitive information.
2.2.18 The ATI will, when information is regarded as satisfactory, send a recommendation to the
World Bank to obtain a “no objection” response.
2.2.19. The ATI may have to assume the duties of the NEAA, if the transaction is going to a
country without satisfactory environmental legislation, standards and assessment procedures.
2.3. Response schedules
2.3.1 The ATI is a trade facilitation agency, and there is a need to deal with applications in an
expeditious manner. The ATI should therefore respond to the applicant and the NEAA on an
orientation basis on the environmental categorisation within 5 days of the applicants registered
application and presentation of the EIN. In most cases, however, this categorization would not
require more than 2 days.
2.3.2 If the ATI decide on a category A, the NEAA should make a clearance for an EA process
within 15 days after receiving registered application and sufficient information from the ATI, and
notify the ATI and the applicant accordingly.
2.3.3 The NEAA should allow a response time to affected stakeholders and NGO’s on the EA
report submitted by the applicant of at least 30 days. After this period, a response to the applicant
and the ATI should be given within 15 days. Only in exceptional circumstances should these time
limits be exceeded, and then with an explanation of why the NEAA need more time.
2.3.4 If the ATI decide on a category B, the NEAA should respond to the ATI within 15 days
after receiving registered application and sufficient information from the ATI, with a letter of “no
objection” if all permits/licences are deemed valid and sufficient and no further assessment is
required, or a decision of “need for further assessment” if requirements are not met.
2.3.5 If the NEAA requires a limited EA, a response to the applicant and the ATI should be given
within 15 days after the review or assessment report has been presented or the deadline for public
response has elapsed. Only in exceptional circumstances should this time limit be exceeded, and
then with an explanation of why the NEAA need more time.
2.3.6 The ATI will however have the authority to issue a policy of insurance subject to a “no
objection” from the NEAA. Thus the insurance policy might be issued prior to hearing back from
the NEAA, but the policy would be declared void if the NEAA states that the applicant is not in
compliance, or may remain conditional with the NEAA’s response, pending the issuance of the
required permit/licenses or approved assessment report.
2.3.7 The ATI can submit a request for "no objection" to the World Bank prior to receiving
feedback from the NEAA for all transactions it has categorised B or C. In such cases, ATI will
subsequently advise the Bank that NEAA clearance has been received (either explicitly or
through non-response). In the contrary case, ATI should advise the Bank of cancellation of the
policy and/or any remedial measures agreed. For Category A transactions, the ATI must receive a
letter of "no objection" from the NEAA before it submits a request for "no objection" to the
World Bank.
2.3.8 This manual for the African Trade Insurance Facility (ATI) provides a framework for how it
should to deal with its environmental screening, assessments and monitoring. A main source of
guidance on the nature and scope of environmental requirements will be the relevant national
laws, regulations and assessment of national environmental assessment authorities. Therefore, if
an applicant is in compliance with national environmental laws and regulations, the transaction
would normally be eligible for issuance of an insurance policy under the ATI.
Table 2. Schematic procedure for an EA for category A transactions
Step Description Who is responsible *)
Applicant NEAA ATI
1 Description of transaction and completion of X

the EIN
2 Screening and categorisation of transaction X
3 Scoping and formulation of TOR X X (approve)
4 Hiring of environmental consultant X X (approve)

(This might also happen at an earlier stage)
5 A baseline study will describe the current X

environmental situation
6 Environmental Assessment Process X

o Gather information
o Analyse information
o Analyse mitigation options with cost
estimation
o Present information on impacts
o Get response from the affected public, NGO’s
and others
o Present a mitigation and monitoring plan
where appropriate
7 Present information and response in a report X X (approve)
8 Public disclosure and hearing X X
9 National approval, disapproval or need for X

more information, issuing of permits and
licences
10 Confirmation of whether national X

requirements are meet and an assessment of
whether the World Bank standards and
requirements are satisfied
11 Send a recommendation to the World Bank for X

“no objection”
*) In those situations where countries don’t have satisfactory environmental legislation, standards and
assessment procedures, the ATI will assume the responsibilities normally assigned to the NEAA
CHAPTER 3
ENVIRONMENTAL SCREENING
3.1 Principles and Methods of Screening
3.1.1 Screening is the first step in the process of an EA, which will assign the product/services in
question and their use to one of the four categories. This categorisation will decide the nature of
further environmental assessment and identify transactions to be excluded from insurance cover
at an early stage to save costly and time-consuming procedures and analysis.
3.1.2 Use of generic checklists that cover different types of products or services can often
facilitate the screening. If the nature of the products or services is modified or new information
becomes available, the ATI may demand reclassification. If a category B-transaction is later
changed to a category A-transaction, additional resources will be required for environmental
studies, public consultation, and report preparation. The time-schedule for the assessment process
will almost certainly be adversely affected.
3.1.3 The significance of impacts may be formulated in different ways. The most simple is the
presence or absence of impacts or a qualification of the degree of impact i.a as moderate,
significant or highly significant. In some cases a more complex quantification and/or qualification
need to be introduced. The assignment of the transaction to either of the categories depends on:
o The type and scale of the products/services and its use;

o The location and sensitivity of environmental issues; and
o The nature and magnitude of potential impacts.
3.1.4 In the process of impact prediction, one will address the issue of whether the impact is
reversible, and if so, the potential rate of recovery. The magnitude is considered to be serious if a
major adverse impact cannot be mitigated. A major adverse impact would affect the potential
subsistence, ecological, recreational or commercial use of biophysical resources. The spatial
extent of influence of the impact should always be determined. If the impact is limited to a
particular and relatively small area, it is categorised as a local impact, but transactions may have,
regional, national or even global impacts.
3.1.5 A numerical scale is often used to provide a quantitative assessment of various types of
predicted impacts. One example is:
Magnitude Extent Duration
High/Major Global Indefinitely

Moderate National Long-term
Minor Regional Medium-term
Negligible Local Short-term
If values are assigned to each of the categories above, a summary of the seriousness of the impact
may be quantified.
Guidance:
Screening is performed by the environmental officer of the ATI on the basis of information
presented in the Environmental Information Note (EIN).
Screening should be based on as professional judgement, and may be assisted by use of the
generic checklists in this chapter 3.
If in doubt, the ATI should consult with the NEAA or seek advise from external
environmental expertise.
3.2 Screening Categories

3.2.1 Category A
3.2.1.1 The following characteristics of possible impacts of the products/services or their
application should make the applicant consider a category A 7 The transaction and its operative
setting must be explained to be able to determine the appropriate environmental category.
Examples where the location for the use of the products or services may be:
• Near sensitive and valuable ecosystems, protected areas and habitat of endangered species;
• Near areas with archaeological and/or historic sites or existing cultural and social institutions
• In densely populated areas, where resettlement may be required or potential pollution impacts
and other disturbances may significantly affect communities;
• In regions where there are conflicts in natural resources allocation;
• Near watercourses, aquifer recharge areas or in reservoirs used for potable water supply; and
• In or close to lands or waters containing valuable resources.
Examples of sensitivity issues where the products or services or their application of can:
• Cause adverse global or regional environmental impacts;
• Concern the rights of indigenous people or vulnerable minorities;
• Lead to involuntary settlements; and
• Lead to toxic waste disposal.
Examples where the nature of the products or services or their use may:
• Cause irreversible degradation of natural resources; and
• Pose risks to human health and safety.
Examples of the magnitude of the application of the products or services where:
• A high amount of scarce resources may be to be at risk;
• The timing and duration of the negative impacts are long; and
• The cumulative effects of many similar, but individually small transactions together lead to
serious impacts.
3.2.1.2 Products/services or their use determined to be in category A are perceived to have

significant adverse environmental and/or social impacts, and mitigating measures might be
necessary to allow for this transaction to be supported. Transactions that might involve or cause
one or more of the following attributes may make the impacts “significant”:
7
World Bank: Revised Environmental Assessment Sourcebook Update, Environmental Screening,
November 1996
Direct pollutant discharges causing degradation of air, water or soil;

Large scale physical disturbances of a site and/or surroundings;
Extraction, consumption or conversion of large amounts of natural resources;
Measurable modification of the hydrological cycle;
Hazardous materials in more than incidental quantities; and/or
Involuntary displacement of people and other significant social disturbances.
3.2.1.3 Transactions involving products or services that are applied with effects as described,
must, due to their scale, complexity and/or specific characteristics, be subject to a full EA carried
out by an independent expert/entity that are not affiliated with the applicant. For those
transactions that are perceived as highly risky or contentious or involve serious and
multidimensional environmental concerns, the applicant should consider engaging internationally
recognised environmental specialists to advise on relevant aspects of the effects of the
transaction.8
3.2.1.4 Examples of products/services in this category are:
Import/export of:
• Hazardous substances; Chemical and petrochemical products; Pesticides and herbicides; or products
or equipment for tanning and dyeing of hides.
• Equipment or products for manufacture of cement, plaster and lime; fertilisers; synthetic detergents,
cleaning agents, paints, varnishes, lacquers; leaded glass or glass products; ferrous and non-ferrous
metal; metal casting; pharmaceuticals; and waste management projects and disposal operations.
• Equipment and services for use relating to mineral, coal, oil and gas extraction and building of oil
and gas pipelines; thermal and hydropower development or expansion, including dams and
reservoirs; large transportation projects, airports, highways, and long distance railway lines; large
scale industrial plants and estates; large scale tourism development; port, harbour and inland
waterway development and large scale groundwater extraction; and urban water supply, irrigation
and drainage.
3.2.1.5 It should be underlined that the products of the transaction as such might not be the main
decisive issue for categorisation, but rather the application and context of the products or services
in question. Therefore might a transaction involving i.a. the sale of oil be categorised as an A, B
or C category depending on the state of the power plant in which it will be used and whether the
plant complies with national environmental laws and regulations.
Guidance:
If the products/services falls within this category, go to chapter 4, 5 and 6
8
http://www.ifc.org/enviro/OP_401/op_401.html
3.2.2 Category B
3.2.2.1 Products/services or their use determined to be in category B often differ from category A
only in scale. Transactions entailing products or services for rehabilitation, maintenance or
upgrading, rather than new constructions are less likely to be “significant” and will often have
impacts that are easily identified and quantified. The scope of the requirements or assessment
instruments should correspond to the perceived environmental impacts. Assurance of compliance
with existing environmental standards might be the most viable way of handling the application.
In some cases an environmental audit, risk or hazard assessment might also be most appropriate.
3.2.2.2. As mentioned in the previous section, the application and context of the products or
services might be as important as the transaction or the products as such. Therefore a transaction,
i.a. involving the import of equipment for fruit and vegetable processing might be an B or C
category depending on the state of affairs of the pollution prevention equipment, previous permits
and licences etc. Some examples of products where a category B should be considered are:
Import/export of:
• Refrigeration equipment; film processing establishments; fleet cars, motorcycles, tractors, spare
parts and equipment, parts and equipment for constructing electrical transmission lines and energy
efficiency and energy conservation; instruments and material for rehabilitation and maintenance of
roads, watersheds, rural water supply and sanitation; and purchase of equipment for metal industries.
• Rubber products (not rubber itself); basic industrial chemicals (dry ice, inorganic salt, alcohol);
waxes and polishes; plastic products (not the plastics themselves) from PVC, HDPE, LDPE;
• Irrigation equipment; agricultural inputs by individual farmers, equipment for manufacture of wines
and other fermented beverages; equipment related to livestock industries; meat and poultry
industries; fruit and vegetable processing, preserving and canning; fish processing, preserving and
canning; and vegetable/animal oil production and processing.
• Equipment for manufacture, assembly and repair of engines and machinery; manufacture, assembly
and repair of electrical equipment, not refrigeration and air-conditioning units and oil-cooled
transformers and capacitors; manufacture and assembly of optical instruments and equipment;
manufacture of laser lenses; and manufacture of jewellery, gold-smiting and precious metal plating.
• Equipment for manufacture of clay products; manufacture of glass products (excluding glass
containing lead); manufacture of structural clay products; spinning, weaving and finishing of natural
and synthetic fibres; manufacture of textile goods; manufacture of leather products and clothing.
• Equipment used for processing of pulp to paper and board; manufacture of paper and board
products; publishing of books, newspapers etc.
• Equipment used for saw milling; manufacture of veneer, plywood and other wood-based materials;
treating preserving wood; manufacture of wood products (carving, crafting, cooperage).
• Equipment used for manufacturing, alteration and repair of small boats and ships; repair and
maintenance shops and garages9; and manufacture and/or assembly of vehicle parts and bodies.
Guidance:
If the product/services falls within this category, the applicant should obtain the required
permits and /or licences or initiate a limited EA as decided by the NEAA.
9
In some cases, e.g. in such operations when discharge of machine oil and other toxic substances is
involved, the vehicle repair shops might be attached to Category A of high environmental risk
3.2.3 Category C
3.2.3.1 This category comprises products/services that are perceived to have none or minimal
environmental impacts. Approval of these types of trade transactions generally does not require
preparation of environmental documentation by the applicant other than the EIN.
3.2.3.2 Examples in this category are:
Examples of products and services in this category may be:

• Training and education (except school construction); Management development and technical
assistance (e.g. pre-feasibility studies); Establishment of business services (business consulting;
accountancy; auditing, etc.); and Software development and production.
Import/export of equipment or goods for:
• Manufacture of wood products (small-scale furniture manufacturing, carving, crafting, etc.); small
scale stone crafting; small scale metal fabrication and upgrading; small scale communication
upgrading; health (except hospital construction) and family planning; Small scale instruments and
hardware replacement; Establishment and equipping of art, design, telecommunications studios;
Broadcasting (TV, radio, satellite); Recreational facilities (except construction); Establishment of
restaurants and other food premises; Establishment and stocking of retail kiosks; Establishment or
renovation of retail shops; Import/export of food, horticultural products and agricultural crops;
Computer equipment; Warehousing and archiving of materials and documents; Manufacture,
assembly, and repair of watches and clocks; as well as sport-related equipment and establishment of
sport facilities;
• Transportation (not including transport of hazardous materials or construction of new roads).
Guidance:
If the project falls in this category, no other information on environmental aspects than the
EIN is required.
3.2.4 Category D
3.2.4.1 This category comprises products/services deemed illegal by national or international laws
or agreements, most often because of environmental and health hazards, and are not eligible for
coverage. A list of excluded products and substances is given in annex 9
3.2.4.2 Examples of such transactions are:
• Trade in weapons and munitions;

• Goods or services related to manufacturing of tobacco products;
• Trading in wildlife or wildlife products prohibited by the Convention on Trade in Endangered
Species of Wild Fauna and Flora (CITES);
• Goods or services involving radioactive materials;
• Projects involving the production or use of products containing chlorofluorcarbons (CFCs) or other
materials prohibited under the Montreal Protocol on Substances that Deplete the Ozone Layer;
• Goods involving production of electric products containing polychlorinated biphenyls (PCBs);
• Trade in products containing asbestos;

• Products and services related to the production of lead paint; and
• Equipment or services related to the introduction of genetically altered organisms.
3.2.4.3 Six of the most important multilateral environmental agreements (MEA) in the context of
the ATI are presented below, while annex 7 is giving information in greater detail.
Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)—
1975 *)
The Vienna Convention on Substances that Deplete the Stratospheric Ozone Layer, with the
Montreal Protocol—1987 *)
Basel Convention on the Control of Transboundary Movement of Hazardous Wastes and their
Disposal—1992 *)
Convention on Biological Diversity—1993, with its Cartagena Protocol on Biosafety—2000 *)
Framework Convention on Climate Change (FCCC)—1994; with its Kyoto Protocol —1997 *)
Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals
and Pesticides in International Trade (PIC)—1998 *)
*) The dates indicate entry into force, except for the PIC Convention, the Cartagena Protocol and the Kyoto
Protocol, which have not yet entered into force. Here, the dates refer to the completion of negotiations.)
3.2.4.4 In addition to the categorical prohibitions outlined above there are several circumstances
under which ATI will decline support for a transaction on environmental grounds:
a) The applicant fails to provide the NEAA and/or the ATI with a satisfactory EA to conduct a
review sufficient to determine project eligibility on environmental grounds.
b) The EA has identified negative impacts of a significant size that can not be mitigated;
c) The transaction will, in ATI’s a priori or subsequent determination, result in direct, indirect
or cumulative impacts that violate the following prohibitions:
• Significant degradation of a national park, similar protected area or tropical rainforest;
• Destruction of or significant degradation in the habitat of an endangered species; and/or
• Other "unreasonable or major environmental, health or safety hazards."
3.2.4.5 Knowledge about environmental impact of various substances and processes increases
over time. Thus, any categorisation of economic activities based on environmental criteria shall
always be partially arbitrary. Today, the world scientific community is extensively involved in
life cycle analysis of environmental impact of various products. Based on these research findings
countries and institutions are designing different environmental policy models. Therefore, the
ATI, before covering a transaction, should be aware of potential failure of the product because it
is banned due to newly discovered negative environmental impact.
Guidance:
If the transaction falls in this category, it is not eligible for insurance cover under the ATI.
CHAPTER 4
ENVIRONMENTAL SCOPING FOR CATEGORY A-TRANSACTIONS
4.1 Principles for Scoping
4.1.1. Once a decision is taken to proceed with an environmental assessment, a scoping process
should start. This process will identify the geographical extent of the likely impacts, the scale of
impacts and basically all relevant issues to be taken into account in the assessment. A key product
coming out of the scoping is a detailed Terms of Reference (TOR) for the preparation of an EA
report.
4.1.2. A careful scoping may benefit the EA process by identification of significant issues and the
most important impacts and avoid delays and additional costs in the later process. The early
appraisal of environmental issues is also important in assessing and mitigating the financial risks
of an operation. Failure to take sufficient account of the costs of compliance with applicable
environmental legislation and standards may significantly increase the time schedule for
processing the application.
4.2 Defining TOR and choice of assessment instruments

4.2.1 A task force under the Development Assistance Committee of the OECD presented a
definition of a TOR for a development co-operation project.10
“A set of administrative, procedural, and technical requirements in sufficient detail to

ensure the completion of a full environmental assessment and the presentation of the
results in a manner which meet the legal and decision-making requirements of the
sponsoring donor agency and the recipient country.”
4.2.2 While the applicant will provide a draft TOR, it is the NEAA that has the authority to accept
or modify the TOR. This process is often a co-operation between the applicant and/or his
consultant and the NEAA. A generic TOR is difficult to provide while giving due credit to
different kinds of specific environmental situations and types of transactions under the ATI.
4.2.3 The NEAA will normally be able to assist in the selection of environmental consultants. In
most countries, the consultants will also need to be approved by the NEAA. The authority should
assist the applicant and the consultants, as necessary, during the conduct of the investigations.
4.3.4 An environmental scoping will result in a choice of appropriate of assessment instrument(s).

Environmental investigations or assessments are undertaken with the objective of providing
information to the concerned stakeholders and to identify possible mitigating actions before the
10
OECD: Coherence in Environmental Assessment, Paris 1996
activity is considered for approval. Under the general concept of “environmental assessment”
(EA), there is a long range of more specific instruments. Some of those considered most relevant
for the kind of transactions expected under the ATI, are presented below.11 Some operations will
require a combination of these instruments, while some transactions or perceived impacts may
require other instruments not described in this manual.
4.3.5 Different instruments can be used to satisfy environmental assessment requirements. These
include environmental impact assessment; environmental audit; hazard or environmental risk
assessment; and an environmental action plan. Environmental assessment applies one or more of
these instruments, or elements of them, as appropriate.
4.3.6 Sample contents of some assessment instruments and guidance on preparation of a public
consultation and disclosure plan are enclosed as annex 2 –6.
Guidance:
The TOR should be a clear and concise “working order” to the applicant/consultant to avoid
unnecessary work and time delays.
Go to chapters 5 and 6 for further guidance on the EA process.
11
http://www.miga.org/screens/projects/disclose/environ.htm
CHAPTER 5
ENVIRONMENTAL ASSESSMENT OF CATEGORY A-TRANSACTIONS
5.1 Guidance on Environmental Assessment
5.1.1 The applicant is responsible for carrying out the EA guided by the TOR as approved by the
NEAA. For category A-transactions the applicant should hire an independent environmental
assessment expert, not affiliated with the transaction in question, to avoid a potential conflict of
interest. If the applicant has completed the EA with in-house expertise prior to the time ATI
considers insurance coverage, independent expertise must be engaged to review the EA.
5.1.2 The hiring of an environmental consultant might be well advised also for some category B-
transactions and will in some countries be required by the NEAA. The hiring of experienced
personnel will often be a cost-effective way of clarifying the environmental impacts and to run a
smooth procedure that is acceptable to the authorities.
5.1.3 A sample set of steps for carrying out an EA is listed below. National regulations and
procedures might vary, and are presented in chapter 7. Not all procedures for environmental
assessments are appropriate to the nature of applications for insurance cover. Flexibility should be
applied and efforts made to find the best instruments and procedures for the transaction.
5.1.4 In exceptional circumstances where a category A transaction is highly risky or contentious

or involves serious and multidimensional environmental and social concerns, the applicant should
engage an advisory panel of independent, internationally recognised environmental specialists to
advise on all aspects of the project relevant to the EA. ATI should independently consider
whether a category A trade transaction might require such a step in light of applicable World
Bank policies.
5.1.5 As with economic, financial and technical appraisal, environmental appraisal is, essentially,
the responsibility of the applicant. If the EA report is not acceptable to the NEAA or the ATI, the
authorities may require additional work before it can be accepted as a basis for decision-making.
5.1.6 IFC and the World Bank Group have developed a set of sectoral guidelines - environmental,
health, and safety guidelines specific to particular industries, sectors, or types of project. These
guidelines are derived from years of extensive experience developing projects around the world,
and give the applicant a powerful tool for avoiding mistakes, reducing development costs, and
improving project sustainability.
5.1.7 IFC is currently using two sets of guidelines for its projects:
IFC is using all the environmental guidelines contained in the “Pollution Prevention and
Abatement Handbook” (PPHA). This Handbook went into official use on July 1, 1998.
IFC is also using a series of environmental, health and safety guidelines that were written in
1991-1993 and for which there are no parallel guidelines in the PPHA. Ultimately new
guidelines, incorporating the concepts of cleaner production and environmental management
systems, will be written to replace this series of IFC guidelines. When completed these new
guidelines will also be included in the PPHA.
5.1.8 Where no sector specific guideline exists for a particular project then the World Bank
“General Environmental Guidelines” and the IFC General Health and Safety Guidelines will be
applied, with modifications as necessary to suit the project. These are shown in the table below:
Figure 3 General Environmental Guidelines.
World Bank Group Guidelines IFC guidelines
1. Aluminium Manufacturing 1. Airports;

2. Base Metal and Iron Ore Mining 2. Ceramic tile Manufacturing;
3. Breweries 3. Construction Material Plants;
4. Cement Manufacturing 4. Electric Power Transmission and Distribution;
5. Chlor-Alkali Plants 5. Fish Processing;
6. Coal Mining and Production 6. Food and Beverage Processing;
7. Coke Manufacturing 7. Forestry Operations and Logging;
8. Copper Smelting 8. Gas Terminal Systems;
9. Dairy Industry 9. General Health and Safety Guidelines;
10. Dye Manufacturing 10. Geothermal Projects;
11. Electronics Manufacturing 11. Hospitals;
12. Electroplating Industry 12. Office Buildings;
13. Foundries 13. Offshore Hydrocarbon Projects;
14. Fruit and Vegetable Processing 14. Polychlorinated Biphenyls (PCB’s);
15. General Environmental Guidelines 15. Pesticide Handling and Application;
16. Glass Manufacturing 16. Plantations;
17. Industrial Estates 17. Port and Harbour Facilities;
18. Iron and Steel Manufacturing 18. Rail Transit Systems;
19. Lead and Zinc Smelting 19. Roads and Highways;
20. Meat Processing and Rendering 20. Telecommunications;
21. Mini Steel Mills 21. Tourism and Hospitality Development;
22. Mixed Fertiliser Plants 22. Wild land Development;
23. Monitoring 23. Wind Energy Conversion Systems;
24. Nickel Smelting and Refining 24. Wood Product Industries;
25. Nitrogenous Fertiliser Plants 25. Waste Management Facilities;
26. Oil and Gas Development (Onshore) 26. Wastewater Reuse.
27. Pesticides Formulation
28. Pesticides Manufacturing
29. Petrochemicals Manufacturing
30. Petroleum Refining
31. Pharmaceutical Manufacturing
32. Phosphate Fertiliser Plants
33. Printing Industry
34. Pulp and Paper Mills
35. Sugar Manufacturing
36. Tanning and Leather Finishing
37. Textiles Industry
38. Thermal Power Guidelines for New
Plants
39. Thermal Power Rehabilitation of
Existing Plants
40. Vegetable Oil Processing
41. Wood Preserving Industry
5.1.9 The EA report has the objective of providing the NEAA and other stakeholders with
sufficient information to enable judgement on whether to issue or refuse an authorisation of the
transaction. The scope and level of detail in the report should correspond with the transaction's
potential impacts and include the following basic items:12 A sample content of an EA report is
enclosed as annex 2.
An executive summary; Description and objective of the transaction; The setting in which
the transaction will take place; The environmental baseline conditions; environmental
regulatory framework; major environmental concerns associated with the transaction,
taking into account direct, indirect and cumulative impacts; any opportunities for
environmental enhancement or compensatory measures; mitigation plan, monitoring plan,
as well as institutional arrangements for the implementation of environmental safeguards.
5.1.10. Failure to take sufficient account of the costs of ongoing compliance with applicable
environmental legislation and standards may significantly increase overall operation costs, both in
terms of capital expenditure for investments needed to achieve compliance, as well as
enforcement measures in case of non-compliance, e.g. increased charges, fines or even the closure
of the operation by environmental authorities. There may be an additional financial risk resulting
from legal uncertainties in connection with liabilities for historical pollution whether or not these
were caused by the enterprise itself. At the same time, the incorporation of environmental
enhancement measures into the operation design is likely to improve the overall efficiency of an
enterprise and thus increase its medium to long-term profitability.
5.2 The Environmental Assessment Process

5.2.1 After previous work related to screening and scoping, the EA process will continue with a
number of steps described below. Flexibility should be observed to best fit the nature of the
products/services in question and their intended use.
Step 1. The applicant will, based on the preliminary findings of the scoping process
and views expressed, plan the EA process
5.2.2 The TOR should guide the process, and be the basis for choice of assessment instrument(s),
information and analysis that are required to assess environmental risks, liabilities, regulatory
compliance and any adverse environmental impacts, as well as to comply with the applicable
environmental legislation and standards.
Step 2. The applicant will normally engage an environmental expert to perform the
assessment.
5.2.3 The NEAA will be able to assist the applicant in choosing among consultants with
internationally recognised qualifications. To ensure that the studies are conducted according to
acceptable standards, national law usually employs a variety of mechanisms. In most countries,
participating under the ATI, the designated national authority is required to approve the names
12
http://www.ifc.org/enviro/OP_401/op_401.html
and qualifications of persons to undertake the study and require that they sign the report before it
is submitted. Such a measure will help to discourage production of reports that are below
acceptable standards.
Step 3. The applicant will produce a draft assessment report.
5.2.4 The EA report should present the products/services and their intended use along with
presentation of the existing environmental (“baseline”) situation. It will present the analysis,
findings, and recommendations clearly and concisely, in a non-technical language, so that it may
be easily to reproduce, disseminate and understand for affected peoples and societies.
5.2.5 The EA report is prepared for the use of effective communication with its audience and
should be brief. The World Bank provides further guidance in the Environmental Assessment
Sourcebook: that has been issued, with updates, periodically since 1993. This information is
available electronically and in hard copy from the World Bank. It may be found on the internet at
http/www.worldbank.org
5.2.6 The Pollution Prevention and Abatement Handbook describe pollution prevention,
abatement measures and emission levels that are normally acceptable to the World Bank.
However, taking into account national legislation and local conditions, the transaction may have
to comply with other emission levels and approaches to pollution prevention and abatement. The
EA report must provide full and detailed justification for the levels applied and how it relates to
applicable standards. Levels lower than the WB standards are not acceptable to the ATI.
5.2.7 If any of the World Bank policies listed in table 3 below, are relevant to the transaction in
question, special attention should be placed on ensuring compliance with them.
Table 4 List of safeguard policies of the World Bank
4.04 - Natural Habitats

4.07 – Water Resources Management
4.09 - Pest Management,
4.10 – Indigenous Peoples, (forthcoming)
4.11 - Cultural Property,
4.12 – Involuntary settlements, (forthcoming)
4.20 - Indigenous Peoples
4.36 - Forestry
4.37 - Safety of Dams
7.50 - Projects on International Waterways
7.60 - Projects in Disputed Areas
8.50 – Emergency Recovery Assistance,
Step 4. The applicant organises consultation with, and encourages a response from
affected people, local communities and NGO’s
5.2.8 The assessment process must be transparent. The applicant should take the added value that
locally affected people can bring to the assessment process into account. NGO’s and individuals
have often access to information and perceptions about potential environmental impacts and
resulting social, economic and cultural impacts that need to be carefully considered as early as
possible in the assessment process. Calling attention to environmental and related social issues by
involving stakeholders helps avoid costs and delays in transaction implementation and reduces
the need for project conditionality to the extent that appropriate measures are incorporated into
the application.
Step 5. An EA report, containing responses from the public disclosure is submitted to the
NEAA
5.2.9 The EA report is submitted to the NEAA with the prescribed number of copies, and one
copy to the ATI with information of the date of delivery. In addition to referring to comments
made, responses to these comments should also be reflected in the EA report, i.a. in the
Mitigation Plan.
Step 6. The NEAA might arrange a public hearing on the basis of the EA report or assist
the applicant to do so.
5.2.10 Before making a final decision on whether to allow transaction, the NEAA may wish to
disclose the applicant’s EA to the public.
Step 7. The applicant needs to obtain the required permits and licenses.
5.2.11 The applicant has to obtain a permit for the use of natural resources and pollution
discharges prior to final appraisal of the project. The planned transaction needs to comply with
the environmental standards and requirements defined in this permit. Usually, the permits
comprises the following issues and respective parts: water supply, consumption and discharge;
pollution discharges to wastewater; air emission from stationary sources; solid waste generation
and management; extraction of raw materials and re-cultivation of damaged soil. Different kinds
of permits may be grouped in three:
o Permit for Design;

o Permit for Construction;
o Permit for the Use of Natural Resources and Discharge of Pollutants.
The issuance of those permits most often requires environmental approval by one or several
governmental authorities.
Step 8. The NEAA reviews the report and public response and, if satisfactory, issue a
“letter of clearance” to the applicant
5.2 12 It is the responsibility of the NEAA to review the EA report, the results of public
consultation, regulatory compliance issues and the adequacy of mitigation plans. References to
standards often need to be incorporated in the legal documentation, and the covenants will, in
such cases specify conditions to ensure compliance with the relevant standards, regulations and
laws. The review should draw attention to any outstanding environmental issues needing
clarification. If the EA is not completely satisfactory, the NEAA may recommend that certain
issues should be re-examined. In those cases where the need for an environmental management
plan (EMP) is required, the EA report alone should not be acceptable as a basis for appraisal by
the NEAA.
Step 9. The NEAA considers the need for monitoring
5.2.13 In some cases, the NEAA may reserve the right to monitor the environmental effect of the
transaction, and possible compliance with environmental requirements. There are three main
types of monitoring that may be established: Compliance monitoring, mitigation monitoring and
impact monitoring. Monitoring may also take the form of self-reporting by the investor of
summaries and, in specified cases, raw data obtained from monitoring a project’s environmental
performance (emissions, effluents or other waste discharges) as well as its environmental impacts
(e.g., on ambient conditions and biological resources).
5.2.14 The NEAA may require applicants to submit annual self-monitoring reports. Such annual
reports will provide the designated authority with regular testing results for any emission
standards, effluent standards, ambient air limitations or water quality limitations where relevant.
Monitoring may also take the form of third party evaluation, including compliance information
developed by national government authorities.
5.2.15 It may be required to conduct certified independent audits if the applicant fails to submit
contractually required annual self-monitoring reports in a timely manner or if other information
indicates a need for further independent audits. Business confidential information in these audits
will be accorded confidential treatment to the full extent permitted by national law.
5.2.16 Monitoring may form an important aspect of the environmental assessment process and
may serve two purposes. The first is to ensure that the applicant complies with applicable
environmental standards and regulations, included in legal agreements. The second is to keep
track of ongoing environmental impacts associated with the transaction in question, and the
effectiveness of mitigation measures as a "feedback" mechanism. Where environmental
monitoring is required, specific provisions should be included in the legal documentation.
Step 10. The ATI will review the documentation from national institutions and assess the
information with respect to World Bank standards and regulations
5.2.17 The ATI will review the application and documentation from the applicant when he/she
has the environmental clearance from the NEAA. The ATI will make certain that the national
requirements are meet, and may in some cases need to consult with the NEAA. ATI will also
review the application and the documentation given in light of World Bank’s standards and
requirements. In some cases additional environmental assessment work may be required.
Step 11. The ATI send the information to the World Bank and request a “no
objection” response.
CHAPTER 6
MANAGEMENT AND MONITORING
6.1 Principles of Management and Monitoring
6.1.1 Where environmental monitoring is required, specific provisions should be included in the
legal documentation, such as requirements for periodic environmental reports, environmental
audits by independent experts and the inclusion of environmental performance criteria.
6.1.2. Monitoring is often an important aspect of the environmental appraisal process. It serves
two purposes. The first is to ensure that the applicant complies with the relevant environmental
standards and mitigation components that are required. The second is to keep track of the ongoing
environmental impacts associated with the products/services and the effectiveness of mitigation
measures as a "feedback" mechanism. The environmental monitoring requirements may exist
until the time at which the insurance period has elapsed or the transaction is cancelled.
6.1.3. Changes can occur in the nature and scope of trade transactions following final approval
and signing, and have significant environmental implications. When such changes are envisaged,
the ATI should co-operate with the NEAA to determine if a re-appraisal is needed for the
modified/restructured transaction. A re-appraisal will be required if a change in the physical
components associated with the transaction may involve environmental issues which were not
subject to the initial appraisal. The NEAA may determine which additional investigations, if any,
are needed, and agree with the applicant on the time schedule for carrying them out. Based on the
outcome of the environmental investigations, the ATI will determine which, if any, conditions
need to be included in the agreements on insurance cover for the transaction.
6.1.4. The NEAA will normally reserve its right to monitor compliance with environmental
mitigation requirements and given standards throughout the term of the insurance period.
Monitoring may take the form of self-reporting by the applicant in the form of summaries and, in
specified cases, raw data obtained from monitoring a project’s environmental performance
(emissions, effluents or other waste discharges) as well as its environmental impacts (e.g., on
ambient conditions and biological resources). Monitoring might also take the form of third party
evaluation. Annual self-monitoring reports might often be the preferred choice of reporting, and
where impacts are less serious, monitoring might be on a random or selective basis. Copies of
monitoring reports should also be sent to the ATI.
6.1.5. The NEAA may require applicants to conduct, and certify that they have conducted, third-
party independent audits for all category A-transactions. The purpose of such audits is to evaluate
a the compliance with all environmental conditions that are reflected in national and Bank
environmental requirements with respect to the transaction and to validate the methodology used
for all self-monitoring reports.
6.1.6 Category A transactions will be required to conduct further certified independent audits if
the applicant fails to submit contractually required annual self-monitoring reports in a timely
manner or if information indicates a need for further independent audits. Business confidential
information in these audits will be accorded confidential treatment to the full extent permitted by
national law. Independent third-party compliance audits allow ATI-supported projects to be
evaluated in an objective and systematic manner based on defined criteria. Proper execution of an
audit requires active co-operation of applicants, good co-ordination of all stakeholders in order to
reduce costs and a carefully documented inspection to support all findings and recommendations.
6.1.7. Material misrepresentation or non-compliance with environmental undertakings may

constitute an event of default under the terms of ATI insurance contracts. Depending on the
severity and reversibility of the environmental impact and the applicant’s responsibility and due
diligence in attempting to prevent the default and in curing the problem, the NEAA may in
consultation with ATI, treat the default as curable or incurable. In the case of a curable default,
NEAA/ATI works with the applicant to develop a feasible timetable for remediation. In the case
of an incurable default, NEAA/ATI may require contract termination in the case of insurance.
Additionally, failure to meet contractually required reporting requirements can constitute a
default. In all cases, NEAA/ATI seeks to work co-operatively with applicants to arrive at an
equitable resolution of the situation, taking into account the requirements of other insurers.
CHAPTER 7
COUNTRY SPECIFIC NATIONAL ENVIRONMENTAL REGULATIONS
7.1 Burundi
Environment policy and Legal Framework
7.1.1 The government has adopted regulations which introduce environmental management and
environmental protection against all forms of degradations. These regulations are aimed to
prevent exploitation of the natural resources, to fight against the various forms of pollution and
harmful effects and to improve the living conditions of the population, while respecting the
balance of the ecosystem.
7.1.2 Protection and enhancement of the environment are integral parts of the Environment
National Strategy (ENS) in Burundi. The action plan identified within this framework will
contribute to the integration of the issues of environment and of sustainable development in
policies, sectoral and economic strategies.
Environmental Assessment
7.1.3 When installations, projects or activities might, because of their dimensions or character,
damage the environment, the applicant must develop and submit an environmental assessment
(EA) to the Administration of the Environment in order for them to be able to assess the direct or
indirect project impacts on the ecological balance, the quality of the life of the population and the
issue of the protection of natural resources in general
7.1.4 The EA must include the following sections:

• Analysis of the initial state of the site and its environment;
• Evaluation of the foreseeable consequences of the implementation of the project/activity on
the site and on its natural and human environment;
• The statement and the description of the measures considered by the applicant of the activity
to remove, reduce, and/or if possible to compensate for the detrimental consequences of the
project;
• The estimated corresponding expenditure; and
• Presentation of possible alternative solutions and the reasons why the suggested
project/activity is preferred.
7.1.5 Non-observance by the applicant of the previous measures authorizes the

administration to warn the applicant by giving him a term, which cannot exceed 3
months, during which the applicant have to comply with the measures listed in EA. If at
the expiry of the fixed period, the formal warning was not followed, the administration will
be able to order the suspension of the operations or to withdraw the authorization. The
applicant can claim no allowance.
7.1.6 In collaboration with the concerned Ministry, the Administration of the Environment
will control the project execution by monitoring the measures listed in the EA.
7.1.7 Maintenance of installations and the major repairs are not subjected to an environmental
assessment.
Environmental Standards
7.1.8 The statute part III “Protection et mise en valeur des ressources naturelles” provides a
framework for the establishment of environmental standards to govern air, water, soil, forest.
Wildlife, protection of the human environment, is also covered under the statute.
7.1.9 Control of pollution and the harmful effects are developed under part V “Lutte
contre les pollutions et nuisances” and are relatively complete.
7.2 Malawi
Environment Policy and Legal Framework
7.2.1 The government has developed a national environment action plan, the purpose of which is
to promote and facilitate the integration of strategies and measures for the protection and
management of the environment. In the context of this plan, Malawi adopted the Environment
Management Act in 1996. This framework is governed by certain basic principles, the most
important of which centre on the need:
o To conserve and ensure sustainable use of natural resources.
o To prevent any act or omission which is deleterious or injurious to any segment of the
environment.
o To provide public awareness and participation in the formulation and implementation of
environmental and conservation policies of the government.
7.2.2 The Environment Management Act makes provision for establishment of the National
Council for the Environment (NEC) whose main task is to advise the Minister on all matters and
issues affecting the protection and management of the environment. Basically, the Council,
though subordinate to the Minister, is responsible for the implementation of the provisions of the
Act through the Director of Environment Affairs. The Council has a Technical Committee whose
members are appointed on the basis of their qualifications in environmental matters.
7.2.3 The Act is comprehensive and covers the environment assessment (EA) process. The
Minister under the Act can by notice publish in the Gazette and specify the types and sizes of
projects that cannot be implemented unless an environmental impact assessment (EIA) is carried
out. Before implementing any project for which an EIA is required, the developer must submit to
the Director a project brief which, must include:
o Description of the project;
o Location;
o Purpose and scope of the project;
o Potential impacts on the environment: and
o Any such matter that the Director may in writing require from the developer.
7.2.4 The Director will determine from the project brief whether a full scale EIA should be
conducted. If a full scale EIA is needed, the Minister will, based on the advice of the Director set
the terms of reference (TOR) for the study, which is published in the Gazette, making the
guidelines or TOR public.
7.2.5 The developer is required to submit to the Director an environmental impact assessment
report or statement (EIS) giving:
o a description of the project and the activities to be undertaken to implement the project;
o the description of the segment or segments of the project likely to be affected by the
project;
o the means of identifying, monitoring and assessing the environmental effects of the
project;
o the description of the technology to be used;
o the reasons for selecting the proposed site and other available alternative site;
o likely impact the project may have on the environment;
o measures proposed for eliminating, reducing or mitigating any anticipated adverse effects
on the environment; and
o an indication of whether the environment of any other country will be affected.
If the Director is satisfied with the project, the developer will be issued with a letter of approval
from the Minister.
Public Participation and Disclosure

7.2.6 The environmental assessment report when submitted is open to public inspection. The
Director is required to invite written and oral comments from the public on the report. He can also
conduct where necessary; a public hearing at such place or places for the purpose of assessing
public opinion and to obtain a fair and just decision. It is underlined in the Act, section (52), that
every person has access to any information submitted to the Director or any lead agency relating
to the provisions of the Act.
Monitoring
7.2.7 Under the Act the Director may carry out or caused to be carried out periodic audit of any
project for the purpose of enforcing the provisions of the Act. The developer is required to keep
accurate record, which should be made available for inspection. To ensure compliance with the
provision of the Act, inspectors appointed under the Act have the power to examine any activity,
which they consider to be detrimental to the environment.
Enforcement
7.2.8 There are specific provisions under part (XI) of the Act relating to the giving of false
information in an environmental assessment reports, the keeping of reports and violation of
environmental standards and guidelines which can lead to heavy fines and even imprisonment.
7.2.9 Malawi like other countries in East Africa is in the process of developing environmental
quality standards generally, and in particular for air, water, soil, noise, vibrations, radiation,
effluent and solid waste. The environmental framework law is relatively complete. Environmental
assessment regulations need however, to be developed to guide developers in all the phases of the
assessment process. Meanwhile the Authority can use the powers provided by the Act under
section 43(1) to grant licence for the discharge of pollutants into the environment as well as the
power to regulate water, pesticides and hazardous substances and enforce guidelines they have
developed.
7.3 Kenya
Policy and Legislative Framework
7.3.1 Kenya has articulated a comprehensive policy on the environment embodied in the
Sessional paper No 6 of 1999 entitled Environment and Development. The government’s policy
on the environment is based on some fundamental principles, objectives and goals, which echo
the Bank’s own policies on the environment. The Kenya government recognises that
environmental protection as integral to the process of sustainable development. In this context a
multi-sectoral approach to environmental planning is adopted to ensure consistency and to
address the totality of the environment in all its aspects.
7.3.2 To achieve the many objectives the government has set for itself in the Sessional paper, it
has developed an environmental action plan and has adopted a framework Act, The
Environmental Management and Co-ordination Act of 14th, January 2000 through which it hopes
to achieve the objectives outlined in the policy document.
7.3.3 The operational measures set out in the Act recognises in part (vi), the need for
environmental assessment. The provisions in the Act state that “any person being a proponent of a
project shall before financing, commencing or proceeding with, carrying out, executing or
conducting or causing to be financed, commenced, proceeded with, carried out executed or
conducted by any other person any undertaking specified in the second schedule of the Act,
submit a report to the Authority in the prescribed form giving the prescribed information etc.”
7.3.4 The Act went on to specify under Clause 58(5), that environment impact assessment studies
required under the Act must be conducted or prepared respectively by individual experts or a firm
of experts authorised in that behalf by the Authority. The Authority is required to maintain a
register of all individual experts or firms of all experts duly authorised by it to conduct or prepare
environmental impact assessment studies and reports respectively. The register shall be a public
document. The Act also provides that the proponent shall undertake at his own expense an EIA
study.
7.3.5 The assessment report should contain:

o Title, with a description of the project;
o Description of the project initiator;
o Statement of need for the project;
o Project description;
o Description of existing environment;
o Description of the results of preliminary assessment:
o Detailed examination of the impacts;
o Suggested mitigation and abatement measures;
o Description of residual impacts;
o Evaluation of the project; and
o Indication of data sources, consultation and public participation.
7.3.6 The Act provides that the Director General shall respond to the applications for impact
assessment within three months. The Authority may ask the proponent to carry out at his own
expense further evaluation or environmental impact assessment to ensure that the EIA study,
review or evaluation report is as accurate and exhaustive as possible. The Authority will issue an
environmental assessment licence to the proponent on such terms and conditions as may be
appropriate if satisfied as to the adequacy of the environmental assessment study.

7.3.7 The procedure laid down in the Act under Section (59) requires the Authority on receipt of
an environmental impact study to publish the report in for two successive weeks in the Gazette
and a newspaper circulating in the area or the proposed area of the project a notice which shall
state:
o A summary description of the project;
o The place where the project is to be carried out;
o The place where the environmental impact statement. Evaluation or review report may be
inspected; and
o A time limit of not exceeding sixty days for the submission of oral or written comments
on the study, evaluation and review.
7.3.8 The period stipulated above can be extended to afford reasonable opportunity to any person
to submit comments on application to the Authority. Members of the public are involved at the
decision making stage. It is not clear at all whether the public is consulted at the crucial scoping
stage. This issue may be clarified when the EIA regulations and guidelines are issued
Monitoring
7.3.9 The Act is strong on environmental audit and monitoring. Parts (vii) and (x) cover these
aspects in terms of compliance with the terms and conditions of an environmental impact
assessment licence issued under the Act. The Authority is responsible for carrying out
environmental audit on all activities that .are likely to have significant effect on the environment.
The Authority is expected to ensure that the project conforms in operation with the statement
made in the environmental impact assessment study report. The operator of the project is
expected to take all reasonable measures to mitigate any undesirable effects not contemplated in
the environmental impact study.
7.3.10 The owner or operator of a project for which an environmental impact assessment study
report has been made shall keep accurate records and make annual reports to the Authority
describing how far the project conforms with the environmental impact statement. The Authority
may cancel, review or suspend an EA licence for up to twenty-four months. The developer can
appeal against the Authority’s decision to the National Environmental Tribunal.
Environment Standards
7.3.11 The Act part (viii) establish a Standards and Enforcement Review Committee as a
committee of the Authority. Its main function is to recommend to the Authority minimum quality
standards on air, water for different uses, waste of all kinds, noise and pesticide and toxic
substances. The Act provides for penalties against water pollution (section 72(1), discharge of
effluents without licence section 75(1), air pollution (section 78(2), 86(9) (98)) on the treatment
of waste and pesticide and toxic substances.
7.3.12 The Authority is developing standards in all the areas mentioned above. Meanwhile
guidelines have been developed on water pollution. The Authority for this media has adopted the
British Royal Commission standards on the protection of water and WHO standards. The
Guidelines cover the discharge of effluents in aquatic environment and industry specific effluent
discharge standards. These guidelines are technical guidelines. They are yet to be gazetted and
therefore do not have the force of law.
7.3.13 Nevertheless, Kenya has several pieces of current laws and regulations that address air and
water pollution. For water there is the Water Act and the Water (General) Rules (legal notice of
1964), which subject the discharge of effluents, trade and solid waste in or near a water body to
strict control. The Public Health Act concerns itself mainly with domestic water supplies and
sources of water used for humans. The Merchant Shipping Act focuses on the pollution of coastal
and marine waters. The Penal Code section (191) penalises the corruption of waters of any public
spring or reservoir. Several laws cover air pollution. The control and prevention of air pollution is
dealt with under the Public Health Act, The Traffic Act (ch.403), the Fisheries Act (ch.514) and
the Penal Code.
7.3.14 The quality of soils is managed under the Agricultural Act (ch.318), the Land Planning Act
(ch.303) and the Fertiliser and Animal Foodstuffs Act (ch.345). In part (viii) stringent quality
standards have been set to cover pesticide management, control, packaging, labelling,
distribution, storage as well as the handling of chemicals and materials destined for domestic and
industrial use.
Institutional Arrangements
7.3.15 The Act establishes a National Environmental Council (NEC) as the policy making and co-
ordinating institution and a National Environmental Management Authority (NEMA) as the
administrative arm of the Council. The Authority is supported at the District level by District
Environment committees, which work through the District Development committees. Inter
District projects are regulated through the Provincial Environmental Committees, which work at
the planning level under the provincial Monitoring and Evaluation Committee.
7.4 Rwanda
Policy and Legal Framework
7.4.1 Rwanda has yet to develop the required environmental laws and regulations. Nonetheless,
the government is, in its effort to normalise Rwandan society, developing policies in all sectors.
In the context of the transitional programme of the Government, the Ministry of Agriculture,
Livestock, Environment and Rural Development is beginning to address the issue of resource
management, the development and conservation of resources for sustainable development. In this
regard it has developed a National water resources management policy (1998) to address the
country’s most abundant natural resource, water. In the policy document the government has
shown a keen awareness of the need for environmental assessment for the sustainable use of
natural resources. The government has to develop the necessary legal framework and regulations
to govern the management of the environment to put these ideas into effect.
7.5 Tanzania
Policy and Legal Framework
7.5.1 Tanzania has a national environment policy, which was developed and issued from the Vice
President’s Office in 1977. The policy document spells out the objective of the policy, which
seeks to ensure sustainability, security and equitable use of resources for meeting the basic needs
of present and future generations without degrading the environment or risking health and safety.
The policy recognises the relationship between poverty and environment degradation and accepts
the challenge of integrating environmental issues into the core of national development policy
making.
7.5.2 The government recognises that many individuals, interest groups including indigenous
people have an interest in the environment. The implementation of the environment policy
therefore requires co-ordinated action. In this respect the government recognises that the multi-
focus approach will be central to environmental management and an institutional mechanism has
to be established to foster and enhance effective co-operation and co-ordination among relevant
organs of the government.
7.5.3 The government has therefore designated the Ministry responsible for the environment as
the authoritative voice and catalyst for action on behalf of government and shall exercise overall
policy, planning and implementation oversight on environmental matters. In furtherance of this
policy the National Environmental Management Council (NEMC) was established under the
National Environment Act No 19 of 1983.
7.5.4 This Act as it stands cannot govern the entire pattern of environmental management as spelt
out in the National Environment Policy (NEP). The Act needs to be replaced by a more
comprehensive legal framework, which will take into consideration the structure and division of
government functions and the many stakeholders involved in the various sectors affecting the
environment. Environmental management in Tanzania is today carried by a myriad of institutions
contrary to the integrated management approach put forward by the NEP. Currently, there is no
integrated system to enforce standards and issue licences to projects.
7.5.5 One of the functions of the NEMC according to the Act, clause 4(h) is to specify standards,
norms and criteria for the protection of beneficial uses and maintenance of the quality of the
environment. The law did not specify that the NEMC have the mandate to enforce those
standards. The government is giving priority to setting standards and the NEMC together with the
Tanzania Bureau of Standards are jointly working with research institutions, universities, NGOs,
government agencies and a cross section of industries to deal with specific areas of environmental
standardisation.
7.5.6 There are current legislation which are still operational in respect of the pollution of water,
air and the soil. Examples are the Water Supply Act and the Water Utilisation (Control and
Regulations) 1981, which establish control and regulatory mechanism for water and water
pollution. The Public Health (Sewerage and Drainage Ordnance (Cap. 336). The Act empowers
urban authorities to prohibit the discharge of certain substances into the public sewers. The
Fisheries Act provides regulatory powers on the flow of water into any lake, river, dam estuary or
seawater. The Penal Code and the Local Government Acts No.788 of 1982 deal with air quality.
7.5.7 The National Environment Management Act needs to be amended to provide for the
administration of the environmental assessment process and give enforcement powers to the
NEMC in relation to the environmental management in general and the EIA process in particular.
Management of environmental resources is conducted through a series of sectoral
environmentally related legislation. Among these, the only Acts that make provision for the EIA
process as a planning tool, are the Marine Parks Reserves Act of 1994 and the Mining Act of
1998.
7.5.8 Nonetheless NEMC has developed guidelines and specific criteria for the conduct of
environmental impact assessment (EIA), and has in this context produced a list of projects that
may require EIA. It has also produced a second list of small-scale activities and enterprises that
require registration but may or may not require EIA. The guide covers all the steps required in the
EIA process from registration, screening, preliminary assessment and any detailed study to
follow.
Screening
7.5.9 The screening process is important in the context of the Regional Trade Facilitation Project.
The screening process will show whether a project is likely to have serious adverse environmental
consequences and thereby establish whether the project require detailed assessment. The
following factors are considered during screening:
o location and scale of project;
o technology used ;
o public concern ;
o land use consideration;
o environmental impacts; and
o any factors relevant to the project.
On the basis of the submission made a decision will be taken as to whether a full EIA is required
or not or the proposal rejected
Scoping
7.5.10 This aspect is used to determine information needs and review alternative options to the
project. It is used also for the preparation of the terms of reference for the EIA. The EIS should
contain the following:
o executive summary of the EIA findings;
o description of project;
o baseline data;
o statement of predicted impacts, their likely significance;
o statement of the proposed mitigation measures;
o statement of those impacts that are likely to remain after mitigation is implemented: and
o description of the monitoring procedures required to ensure that mitigation and
unforeseen impacts are assessed once project implementation begins.
Monitoring
7.5.11 The monitoring process will ensure that mitigation measures are carried out in time and in
the manner prescribed in the environmental impact statement as well as in the environmental plan
itself. The guide is silent as to who should carry out the monitoring
Public Participation
7.5.12 The government is determined as indicated in the National Environment Policy that
individuals, groups, and organisations participate in environmental impact issues and in decisions
particularly those which affect the communities in which they live.
7.6 Uganda
Environmental Policy and Legal Framework
7.6.1 The Uganda government developed a comprehensive environment policy in 1994. In the
policy document entitled The Environmental Management Policy for Uganda, 1994, the
government elaborated a strategy for integrating environmental concerns into the national socio-
economic development process. The policy recognises the serious environmental problems the
country was facing and set out broad objectives, principles, and strategies to address these
problems. The policy document provides policy makers with a dynamic framework for
sustainable use of resources and the basis for the establishment of an appropriate institutional and
legal framework for the management of national environment policy. The country has since 1994
moved forward in this area and adopted the National Environment Statute in 1995. This statute
made it possible for the government to develop an Environmental Impact Assessment Regulations
in 1998.
7.6.2 The Environmental Impact Assessment Regulations (EIA) gives a comprehensive and
detailed description of the EIA process. The Regulations apply to all projects included in the third
schedule of the Statute which broadly cover; urban development, transportation, Dams, rivers and
water resources, aerial spraying, mining, forestry, agriculture, natural conservation areas,
processing and manufacturing industries, hydrocarbon, waste disposal, electrical infrastructure.
The regulations are quite clear as to the distribution of tasks and is categorical as indicated under
section (3) of the regulations that “ a licensing Authority under any law in force in Uganda shall
require the production of a certificate of approval of environmental impact assessment before
issuing a licence for any project under the third schedule of the Statute”. The officer designated
for issuing the certificate of approval of environment Impact assessment under the regulations is
the Executive Director of the National Environment Management Authority
7.6.3 According to the EIA, three important documents will be necessary for projects covered by
the regulations: 1) A project brief. In the project brief the developer is required to prepare a brief
statement on the nature of the project, the activities that shall be undertaken, the projected area of
land, air and water to be affected, the activities of the project and the environmental effect of the
project taking into account ecological and social considerations, land use and landscape. 2) An
Environmental Impact Statement (EIS) stating the findings and recommendations of the
environment impact study. 3) Certificate of Approval of Environmental Impact Assessment
signed by the Executive Director under his seal.
Environmental Screening
7.6.4 The EIA regulations cover a wide range of projects under schedule (3) of the Statute. All
developers are required to submit project briefs to the Executive Director. If the Executive
Director is satisfied that the project will have no significant impact on the environment or that the
project brief discloses sufficient mitigation measures to cope with the anticipated impacts, he may
approve the project. If on the other hand the Executive Director finds that the project will have
significant impacts on the environment and the project brief discloses no sufficient mitigation
measures to cope with anticipated impacts, he shall require that the developer undertake an
environmental impact study. The Executive Director takes these decisions after consultations with
other agencies. The lead agency has to be satisfied that an environmental impact review has been
properly conducted.
Environmental Scoping
7.6.5 The proponent will develop the terms of reference (TOR) for the project after consultation
with the Authority. The TOR will have to include all matters required to be included in the
environment statement as provided for in regulation (14) and such other matters as the Executive
Director may in writing provide. The EIS shall provide a description of:
o the project and the activities it is likely to generate.
o the proposed site and reasons for rejecting alternative sites
o a description of the potentially affected environment
o the material inputs into the project and their potential environmental effect.
o an economic analysis of the project.
o the technology and processes that shall be used, alternative technologies and processes.
o the products and by products of the project.
o the environmental effects of the project including the direct, indirect , cumulative, short
term and long term effects and possible alternatives.
o the measures proposed for eliminating, minimising or mitigating adverse impacts.
o an identification of gaps in knowledge and uncertainties encountered in compiling the
required information
o an indication of whether the environment of any other state is likely to be affected.
The Authority has the right to approve or reject the names of persons presented to conduct the
study.
Public Participation
7.6.6 The responsibility for ensuring that the public is consulted is shared between the proponent
(developer) and the Authority. In the first place, the proponents are supposed to take the initiative
to obtain the views of the people in the communities, which may be affected by the project during
the process of the EIA studies. When the studies are completed and an environmental statement is
submitted, the Executive Director in addition to seeking the comments of lead agencies will also
invite the general public to make written comments on the proposal The Executive Director will
further seek the comments of those affected by the project. The invitation will state the nature of
the project location, anticipated positive and negative impact of the project. The Executive
Director could even go further, for the purposes of good governance, hold a public hearing
presided over by a suitably qualified person to enable the Director to obtain a fair and just
decision.
7.6.7 The environmental impact statement is a public document and may be inspected at any
reasonable time by any person as provided for under section 21(5) of the Statute. In fact any
project brief, environmental impact review report, environmental impact statement, terms of
reference, public comments, reports of the presiding officer at a public hearing or any other
information, except proprietary information, submitted to the Executive Director are regarded as
public documents according to section (29) of the Regulations.
Monitoring of Impacts and Mitigation Measures

7.6.8 In executing the project, the developer shall take all practical measures to ensure that the
requirements of the environmental impact statement is complied with. In this respect according
to section (31) of the Regulations, the developer will undertake an initial environmental audit of
the project within twelve and thirty six months after the commencement of the operations or
completion of the project. The initial environmental audit has to be carried out by persons
approved by the Executive Director. The developer may be required by the Executive Director to
carry out such other audits as may be required subsequent to the initial audit. After each audit an
environmental audit report is submitted to the Executive Director.
7.6.9 The Authority itself can carry out its own monitoring through an inspector designated under
section (86) of the Statute. An inspector may at all reasonable times enter on any land, premises
or facility related to a project for which a project brief or an environmental impact statement has
been made to determine how far the predictions made in the project brief or the environmental
statement are complied with.
7.6.10 A member of the public after showing reasonable cause may petition the Executive
Director to cause an audit to be carried out on any project. The Director after studying the audit
report may require the developer to take specific mitigation measures to ensure compliance with
the predictions made in the project brief or environment statement. Where the developer fails to
implement the mitigation measures, an inspector may issue an improvement notice to the
developer under Section (81) of the Statute, which may result in civil or criminal proceedings
taken against the developer if the developer fails to implement the recommended measures.
Enforcement of EIA Legislation and Regulations

7.6.11 The National Environment Management Authority has the responsibility of enforcing the
National Environment Statute 1995. At the policy level, a high-powered committee is responsible
for setting of EIA legislation and policy. The National Environment Management Authority
(NEMA) has the authority to delegate some of its functions to an agency, and any public officer.
It has also the authority to provide guidelines for environmental management at the District level
through District Environment Committees. The District Committees co-ordinate with NEMA on
all issues relating to the environment, and assist in the development of by-laws relating to the
management of the environment at the local government level. The Executive Director of the
Authority acts as Secretary to the committee. The Authority is the principal agency in Uganda for
the management of the environment and it is required to co-ordinate and monitor all activities in
the field of environment. It has among its functions the authority to review and approve
environmental impact assessments and environmental impact statements submitted in accordance
with the Statute.
7.6.12 The Statute part (vi) provides a framework for the establishment of environmental
standards to govern air, water and soil quality for individual products in agriculture and products
destined for domestic consumption as well standards for waste disposal. The government under
part (vii) of the Statute take measures to protect natural habitats, the land, rivers and lakes, and
wetlands. The management of the forests, rangelands and wildlife is covered under the Statute.
7.6.13 The Statute Section 58(4) provides for the control and regulation of pollution through
licensing. The Section states that “ No person shall carry out any activity which is likely to
pollute the air, the water or land in excess of any standards or guidelines prescribed or issued
under the Statute except under and in accordance with a pollution licence.” This integrative
approach to licensing incorporating all the affected media would help the Authority to regulate
those emissions to which it has not developed complete standards on the basis of temporary
guidelines.
7.6.14 Uganda has entered into a co-operation agreement on an environment management with its
neighbours Tanzania and Kenya. The partner states under this agreement will co-operate to
develop and harmonise national and sectoral laws, regulations, standards as well as environmental
impact processes and procedures.
7.7 Zambia
Environment Policy and Legal Framework
7.7.1 Zambia was among the first countries to develop a national conservation strategy in 1985.
The national conservation strategy helped to identify and highlight key environmental issues and
recommended a series of initiatives and programmes to address these issues. The strategy led to
the development of a legal framework for the environment. The Environmental Protection and
Pollution Act was passed in 1990.
7.7.2 The Environmental Council of Zambia is established under part (ii) of the Environmental
Protection and Pollution Control Act, 1990. The Council (ECZ) has the main responsibility of
enforcing the provision of the Act and the EIA regulations. The ECZ is expected to co-ordinate
the activities of all agencies regarding environmental protection and advise the government on the
formulation of policies relating to the good management of the environment. A Director is
responsible for the overall management and administration of the Council. The work of the ECZ
is further buttressed by an advisory committee whose membership is made of officers from all the
competent Ministries as well as the National Commission for Development and Planning, the
National Council for Scientific Research, Universities, representatives of the industrial sector and
civil society (NGOs)
7.7.3 The environmental Impact Assessment (EIA) Regulations were developed and adopted in
1997. The EIA regulations give a comprehensive description of the EIA process and the formal
requirements attached to the process. The proponent of a project under the regulations will require
three documents before the project can be implemented: 1) A project brief providing information
on the nature of the project, the environmental effect of the project.2) An environmental impact
statement (EIS) produced as a result of environmental impact assessment work. 3) A letter of
approval from the Environmental Council of Zambia.
7.7.4 The EIA regulations cover a long list of projects. For projects listed in the first schedule, the
Council will determine in each case if an EIA is required. If the project is expected to cause
significant environmental impacts, the Council will require that an environmental impact
assessment to be carried out. The EIA is required to address impacts regarding the ecology,
natural resources and social and cultural impacts. Thresholds are given in the regulations for
projects that fall under the following broad categories; urban development, transportation, dams,
rivers and water resources projects, mining, agriculture, forestry related projects, nature
conservation areas, processing and manufacturing industries, electrical infrastructure and waste
disposal. The EIA process for most projects, from the initial brief to formal approval, takes three
to five months. The ECZ can ask for EIA for projects not listed in the first and second schedule of
the regulation.
Scoping
7.7.5 The ECZ approves the terms of reference for the environmental impact assessments and
consultants appointed to carry out the studies.
Monitoring and Enforcement

7.7.6 An Environmental Management plan has to be incorporated in the Environmental Impact
Statement. The plan should include suggestions for mitigating measures and a programme for
monitoring impacts. It is incumbent on all developers to send progress reports to the ECZ
showing impacts and mitigation measures and that the project is progressing according to the
environmental management plan. The Council itself should carry out its own audit three years
after the commencement or completion of the project. The Act provides for an elaborate system
of inspection on water and air quality, the disposal of waste and the control of pesticides and toxic
substances.
7.7.7 The Environmental Council of Zambia is responsible for conducting studies and making
recommendations on standards relating to the improvement of the environment and the
maintenance of sound ecological standards. In this respect the Council is giving priority to setting
quality and pollution control standards for water, air, soil, waste and for the control and regulation
of pesticides and toxic waste. Although Zambia lack clear environmental emission standards to
use when considering impacts and effects of different projects, the National Environmental
Council (NEC) can still enforce environmental standards though out the system through the
powers given to it by the Act.
7.7.8 The NEC has the power to grant licences relating to the discharge of effluents, emissions,
hazardous waste as well as licence for the operation of a waste disposal sites. The authority to
register pesticide or toxic substances also rests with the Council. While the necessary standards
are being developed, the country has to use current laws and regulations governing the
exploitation of the country’s natural resources to regulate environmental standards.

7.7.9 According to the EIA regulations the public should be consulted at all levels of the decision
making process and the different phases of that process. The responsibility of ensuring public
participation is shared between the developer and the ECZ. The involvement of the public
particularly those affected by the project are secured through the media, meetings, and public
hearings where necessary to obtain a fair and just decision. All documents submitted to the
Council are public documents and can be inspected by any interested person with the minimum of
conditions.

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AFRICAN TRADE INSURANCE AGENCY

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Abbreviations and definitions 2

CHAPTER 2 THE PROCESS OF ENVIRONMENTAL REVIEW AND ASSESSMENT

CHAPTER 3 ENVIRONMENTAL SCREENING

CHAPTER 4 ENVIRONMENTAL SCOPING

CHAPTER 5 ENVIRONMENTAL ASSESSMENT

CHAPTER 6 MANAGEMENT AND MONITORING

CHAPTER 7 COUNTRY SPECIFIC NATIONAL ENVIRONMENTAL REGULATIONS

References and Acknowledgements 45

Abbreviations and Definitions

1.2 Objectives and tasks of the African Trade Insurance Agency

Sale of goods on credit terms Import of goods to stock;

1.3 Why environmental assessment?

Figure 1. Simplified overview of an EA process

Screening. If this activity causes environmental impacts, what

Review of EA report by designated authorities, public consultation and

1.4 Summary of steps to be taken for an environmental review of

Figure 2 Main procedural steps for environmental clearance

Category A Category B Category C Category D

The ATI will The ATI will

A or B, or in situations of uncertainty, will the NEAA be asked to participate in the further

Table 1 Most common group of standards

Environmental quality standards can be concentrations of different substances in air, water

2.2 Tasks of the different parties in the process

o Category A: There may be significant environmental and/or social impacts associated

documentation, particularly on the legal and administrative requirements, relevant environmental

2.2.13 If the NEAA deems the applicant to be in compliance with national/international

2.3. Response schedules

Table 2. Schematic procedure for an EA for category A transactions

Step Description Who is responsible *)

Applicant NEAA ATI

1 Description of transaction and completion of X

2 Screening and categorisation of transaction X

3 Scoping and formulation of TOR X X (approve)

4 Hiring of environmental consultant X X (approve)

5 A baseline study will describe the current X

6 Environmental Assessment Process X

7 Present information and response in a report X X (approve)

8 Public disclosure and hearing X X

9 National approval, disapproval or need for X

10 Confirmation of whether national X

11 Send a recommendation to the World Bank for X

o The type and scale of the products/services and its use;

Magnitude Extent Duration

High/Major Global Indefinitely

3.2 Screening Categories

3.2.1.2 Products/services or their use determined to be in category A are perceived to have

Direct pollutant discharges causing degradation of air, water or soil;

3.2.1.4 Examples of products/services in this category are:

If the products/services falls within this category, go to chapter 4, 5 and 6

3.2.3.2 Examples in this category are:

Examples of products and services in this category may be:

3.2.4.2 Examples of such transactions are:

• Trade in weapons and munitions;

• Trade in products containing asbestos;

4.2 Defining TOR and choice of assessment instruments

“A set of administrative, procedural, and technical requirements in sufficient detail to

4.3.4 An environmental scoping will result in a choice of appropriate of assessment instrument(s).

5.1.4 In exceptional circumstances where a category A transaction is highly risky or contentious