Tansheq Limited is an environmental consulting firm capable to implement projects as per IFC environmental social and health requirements

1. LUSAKO
RAPHAEL
SENIOR
ENVIRONMETNAL
CONSULTANT
AUGUST
2015

2. • A
leading
Tanzanian
Company
provider
of
environmental,
health
and
safety,
risk
and
social
consulMng
services
• Two
broad
pracMce
areas
are:
– Impact
Assessment
and
Planning
– Performance,
Assurance
and
Risk
Management
• Served
over
100
companies
in
and
around
Tanzania
and
East
Africa
• Performance
assurance
by
implemenMng
ISO
9001:
2015
requirements
• Website:
www.tansheq.com
• Facebook:
www.facebook.com/tansheq

3. Financial
InsMtuMons
involved
in
Project
Finance
recognize
that
social
and
environmental
risks
may
affect
the
ability
of
the
project
to
generate
revenues
Project
Finance
is
a
specific
type
of
financial
transacMon
in
which
lenders
rely
solely
on
the
revenues
generated
by
a
“project”
as
the
source
of
repayment
and
security
for
the
loan
(aka
Revenue
Based
Finance)
WHY
EQUATOR
PRINCIPLES?

4. Which
is
formed
by
On
Behalf
of
Are
Created
By
EQUATOR PRINCIPLES
ASSOCIATION
STEERING COMMITTEE
EQUATOR PRINCIPLES
ASSOCIATION
EQUATOR PRINCIPLES
FINANCIAL
INSTITUTIONS (EPFI)
EQUATOR PRINCIPLES
ASSOCIATION
SECRETARIAT
Runs
day
to
day
business
of
Private
sectors
financial
insMtuMons
which
are
members
of
Equator
Principles
HOW
DOES
IT
WORK?

5. Scope
of
Projects
Covered
by
Equator
Principles
COVERED
PRODUCTS
1. PROJECT
FINANCE
ADVISORY
SERVICES
2. PROJECT
FINANCE
3. BRIDGE
LOANS
4. PROJECT-­‐RELATED
CORPORATE
LOANS
(including
Export
Finance
in
the
form
of
Buyer
Credit)
MAIN
CRITERION
(CAPITAL
COST
OF
AT
LEAST
US$
10
M)

6. 1. REVIEW(AND(CATEGORIZATION(
2. ENVIRONMENTAL(AND(SOCIAL(ASSESSMENTS(
3. APPLICABLE(ENVIRONMENTAL(AND(SOCIAL(
STANDARDS(
4. ENVIRONMENTAL(AND(SOCIAL(MANAGEMENT(
SYSTEM(AND(EQUATOR(PRINCIPLES(ACTION(
PLAN(
5. STAKEHOLDER(ENGAGEMENT(
6. GRIEVANCE(MECHANISM(
7. INDEPENDENT(REVIEW(
8. COVENANT(
9. INDEPENDENT(MONITORING(AND(REPORTING(
10. REPORTING(AND(TRANSPARENCY(

7. Principle
1:
Review
and
CategorizaMon
(1)
EPFI
categorize
proposed
finance
bound
project
based
on
the
magnitude
of
its
potenMal
environmental
and
social
risks
and
impacts
SCREENING
CATEGORY
A
potenMal
significant
adverse
env
&
social
risks
and/or
diverse,
irreversible
or
unprecedented
impacts
CATEGORY
B
potenMal
limited
adverse
env
&
social
risks
and/or
few
,
site-­‐specific,
largely
reversible
and
readily
addressed
impacts
CATEGORY
C
minimal
or
no
adverse
env
and
social
risks
and/or
impacts

8. Principle
2:
Environmental
&
Social
Assessment
ENING(
CATEGORY(A(
(Significant(env(and(
social(risks)(
ESIA(
SPECIALIST(STUDIES(
(HUMAN(RIGHT(DUE(
DILLIGENCE)((
CATEGORY(B(
(limited(adverse(env(
and(social(risks)(
ESIA(
SPECIALIST(STUDIES(
CATEGORY(C(
(minimal/no(adverse)(
LIMITED(
ENVIRONMENTAL(
ASSESSMENT((AUDIT)(
Environmental
and
Social
Assessment
Required
Project
Category
(as
per
screening)

9. • The
Assessment
process
should
address
compliance
with
relevant
country
laws,
regulaMons
and
permits;
• Projects
in
Designated
Countries
should
comply
with
relevant
country
laws
and
regulaMons
commensurate
to
Equator
Principles
2,
4,
5
and
6;
• Projects
located
in
Non-­‐Designated
Countries
should
comply
with
IFC
Performance
Standards
&
World
Bank
Group
EHS
Guidelines
Principle
3:
Applicable
Environmental
and
Social
Standards
(1)

10. Principle
3:
Applicable
Environmental
and
Social
Standards
(2)
Others
which
might
be
used
by
EPFIs
in
non
designated
countries:
• World
Bank
Safeguard
Policies
• World
Bank
Group
EHS
Guidelines
• ILO
Core
Labor
Standards
• EU
Environmental
LegislaMon
• World
Commission
on
Dams
• EA
and
Involuntary
Reseklement
Sourcebooks
• Pest
Management
Guidebook
• Regulatory
Framework
for
Dam
Safety
• PolluMon
PrevenMon
Abatement
Handbook
• OPCS
Guidance
Notes

11. Principle
4:
Environmental
and
Social
Management
System
&
Equator
Principle
AcMon
Plan
Category
A
&
B
Projects
client
develops
Environmental
and
Social
Management
System
(ESMS)
detailing
a
systemaMc
way
of
implemenMng
an
Environmental
and
Social
Management
Plan
(ESMP)
Where
the
applicable
standards
are
not
met
to
the
EPFI’s
saMsfacMon,
the
client
and
the
EPFI
will
agree
an
Equator
Principles
AcMon
Plan
(AP)

12. Principle
5:
Stakeholder
Engagement
• Category
A
and
Category
B
Projects,
requires
effecMve
Stakeholder
Engagement
• Stakeholder
Engagement
should
be
an
ongoing
process
in
a
structured
and
culturally
appropriate
manner
with
Affected
CommuniMes
and
Other
Stakeholders
• This
process
should
be
free
from
external
manipulaMon,
interference,
coercion
and
inMmidaMon

13. Principle
6:
Grievance
Mechanism
Required
for
Category
A
and,
as
appropriate,
Category
B
Projects,
as
part
of
the
ESMS
The
client
will
inform
the
Affected
CommuniMes
about
the
mechanism
in
the
course
of
the
Stakeholder
Engagement
process

14. Principle
7:
Independent
Review
• Independent
Environmental
&
Social
Consultant
shall
do
independent
review
for
Category
A
and/or
B
projects,
or
projects
with
high
risk
impacts
• High
risk
impacts
includes,
but
not
limited
to,
following:
adverse
impacts
on
indigenous
peoples;
CriMcal
Habitat
impacts;
significant
cultural
heritage
impacts
and
large-­‐scale
reseklement
• Independent
Review
check
compliance
to
EP,
documentaMon
to
be
reviewed
include
ESMPs,
ESMS,
and
SEP
and
propose/opine
EPAP

15. Principle
8:
Covenants
• All
Projects:
Client
will
covenant
in
the
financing
documentaMon
to
comply
with
relevant
host
country
environmental
&
social
laws
&
regulaMons
• Category
A
&
B
Projects:
Client
will
covenant
the
financial
documentaMon:
– to
comply
with
the
ESMPs
and
EPAP
during
construcMon
&
operaMon;
– to
provide
periodic
(at
least
annually)
reports;
and
– to
decommission
the
faciliMes
in
accordance
with
decommissioning
plan

16. Principle
9:
Independent
Monitoring
and
ReporMng
Category
A
and/or
B
Projects,
require
the
appointment
of
an
Independent
Environmental
and
Social
Consultant,
to
verify
project’s
monitoring
informaMon
which
would
be
shared
with
the
EPFI

17. Principle
10:
ReporMng
Transparency
• Client
shall
ensure:
– a
summary
of
the
ESIA
is
accessible
and
available
online
– publicly
report
GHG
emission
levels
(combined
Scope
1
and
Scope
2
Emissions)
during
the
operaMonal
phase
for
Projects
emiong
over
100,000
tonnes
of
CO2
equivalent
annually
• EPFI
will
report
publicly,
at
least
annually,
on
transacMons
that
have
reached
Financial
Close
and
on
its
Equator
Principles
implementaMon
processes
and
experience.

18. What
Tansheq
Offers
• E&S
due
diligence
for
Project
Lenders;
• ESIA/ESMP
for
Project
proponents;
• Lenders’
Environmental
and
Social
Advisor
reviewing
the
Project
ESIA,
ESMP,
management
system
and
loan
covenants
• EHS
management
systems
for
Projects
on
behalf
of
Project
proponents
• Training
on
EP
and
IFC
PSs
• Monitoring
implementaMon
of
ESMP
and
compliance
with
loan
covenants

19. Contacts
Lusako
Raphael
Plot
No.
83,
Wakulima
Road,
Hananasif
Estate
P.
O.
Box
31517,
Dar
es
Salaam.
Tel:
+255713695552/+255684884665;
E-­‐mail:
lusako@tansheq.com;
Website:
www.tansheq.com