Rwanda: Accelerating Sustainable and Clean Energy Transformation (ASCENT) Rwanda

OBJECTIVE

The Project objective is to increase access to sustainable and clean energy in the Republic of Rwanda.

DESCRIPTION

The Project will increase access of households and businesses to less carbon intensive and lower greenhouse gas (GHG) emitting sources of energy by increasing grid electrification and enhancing the availability of and access to clean cooking solutions. The Project comprises: (i) provision of grid-based electricity connections through grid densification in areas already covered by the grid and through grid extension to new areas; (ii) provision of off-grid electricity solutions; and (iii) provision of clean cooking solutions. Specifically, the Project scope involves:

1. Provision of 420,000 grid connections including related backbone infrastructure.

2. Upgrade of four 110/30kV and two 110/15kV transformers in five existing substations; construction of one 110/30kV substation, two 20 megavolt-amperes (MVA) transformers and one 110kV transmission line (21km); construction of one 220kV transmission line (56km); construction of four 30/15kV, 5MVA substations and associated medium voltage (MV) feeder lines; construction of three MV switching cabins; and extension and/or upgrade of 160km of MV lines and rehabilitation of low voltage (LV) lines in Kigali City, Southern Province and Western Province, to reinforce the transmission and distribution system and increase system efficiency and reliability.

3. Provision of at least 50,000 solar home systems (SHS), 80,000 household clean cooking technologies and 60 institutional clean cooking solutions.

The Project will be jointly co-financed with the World Bank (WB) as the lead cofinancer.

ENVIRONMENTAL AND SOCIAL INFORMATION

Environmental and Social Policy. The loan will be co-financed with the WB as lead co-financier, and the Project’s environmental and social (ES) risks and impacts have been assessed in accordance with the WB’s Environmental and Social Framework (ESF). To provide for a harmonized approach to addressing the ES risks and impacts of the project, and as permitted under AIIB’s Environmental and Social Policy (ESP), the WB’s ESF will apply to the Project in lieu of AIIB’s ESP. AIIB has reviewed the WB’s ESF and is satisfied that: (i) it is consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of AIIB’s ESP, including the Environmental and Social Exclusion List (ESEL) and the relevant Environmental and Social Standards (ESSs); and (ii) the monitoring procedures that are in place are appropriate for the Project.

Environmental and Social Instruments. To mitigate ES risks and impacts, in compliance with WB’s ESF, the Client has prepared appropriate ES instruments: the Environment and Social Commitment Plan (ESCP), Environmental and Social Management Framework (ESMF), Resettlement Policy Framework (RPF), Stakeholder Engagement Plan (SEP), Labor Management Procedures (LMP). The ESMF will provide for an exclusion list to exclude high-risk activities, particularly interventions in protected areas and critical habitats, and will incorporate Biodiversity Management Plans if significant impacts are anticipated. Site-specific ES risk management instruments required for the respective subproject activities will be ready before launching of the related contractor bidding process. For the sub-components being implemented by Development Bank of Rwanda (BRD), ES risks and impacts will be managed through BRD’s existing Environmental and Social Management System (ESMS). AIIB and WB will review the ESMS to assess its adequacy, and any necessary changes will be completed prior to implementation of these activities.

Environmental Aspects. The potential environment risks and impacts related to the Project during the construction and operation/maintenance phases are diverse and are expected to have both positive and negative impacts on the environment, as well as potential occupational health and safety (OHS) risks to workers and communities if not managed properly. The proposed activities under the Project, including civil works related to MV and LV power transmission and distribution lines, may have potential risks and impacts on biodiversity, natural resources, and/or cultural heritage sites. The planned activities could also pose environmental and OHS risks during replacement of transformers in the existing substations and construction of new ones and associated feeder connections. The Project’s technical assistance involving improvements in sector performance and policy/regulations may also entail direct and indirect ES risks. Furthermore, there are potential ES risks related to off grid solutions, which include electronic waste management issues comprising storage and final disposal of used batteries containing hazardous waste, recycling/disposal of solar panels from stand-alone SHS and related OHS issues such as fire and explosion risks from clean cooking solutions. The Project will not finance any activities that could adversely affect biodiversity conservation or the sustainable management of living resources.

Social Aspect. The Project will have both positive and negative social impacts on people and communities in implementation areas. There will be no significant land conversion as a result of the Project, the key social risks and potential adverse impacts are related to project activities to scale up grid electricity access and clean cooking solutions in schools. These may include impacts on people’s livelihoods due to restrictions on land use and land acquisition, gender-based violence (GBV) brought about by labor influx at electricity construction sites and in schools where clean cooking infrastructures will be installed, and risks related to discrimination in accessibility of project services including solar systems. Social risks and impacts are expected to be site specific, predictable, and temporary, which may be prevented, managed and/or mitigated through the application of established mitigation measures, as detailed in the Project’s ES instruments.

Gender. The Project will build on the efforts made under ongoing projects and help to address gender equality gaps, specifically by strengthening women’s access to new and improved energy, namely grid and off-grid electricity, clean cooking solutions and productive use of energy technologies, and by creating energy sector jobs for females in the science, technology, engineering and mathematics fields. Progress towards closing these gender gaps in Rwanda’s energy sector will be monitored through indicators in the results monitoring framework.

Project Grievance Redress Mechanism. Per the SEP, an operational grievance redress mechanism (GRM) at the level of the implementing agencies and at subproject level will be established prior to commencement of Project activities and will be operationalized and maintained throughout Project implementation. The GRM will be accessible to stakeholders at both Project and sub-project level and the information of established GRM and the Independent Accountability Mechanism (IAM) of World Bank will be disclosed in a timely and appropriate manner. In addition, a commensurate mechanism will be made available at the contractor level for workers’ grievances.

Monitoring and Supervision Arrangements. The implementing entities will prepare and submit quarterly monitoring reports on the Project’s ES performance throughout the Project implementation period. AIIB will monitor the Project’s ES management performance together with WB through these reports and during its implementation support missions.