INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 04/30/2009 Report No.

: AC4272

1. Basic Project Data Country: Pakistan Project ID: P114278 Project Name: Thar Coal and Power Technical Assistance Project Task Team Leader: Michael C. Stanley Estimated Appraisal Date: April 27, 2009 Estimated Board Date: June 25, 2009 Managing Unit: COCPO Lending Instrument: Technical Assistance Loan Sector: Mining and other extractive (55%);Power (45%) Theme: Other environment and natural resources management (P) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 30.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 4.20 4.20 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] or OP 8.00 (Rapid Response to Crises and Emergencies) 2. Project Objectives Project Developmental Objectives is to help the government strengthen the enabling policy, legal, and regulatory frameworks suitable to attract qualified investors to develop the coal-to-power sector in an economic, environmentally and socially acceptable manner. Expected Project outcomes would be as follows: Implementation of enabling policy, legal, and regulatory frameworks Efficiently operating regulatory and investment agencies Qualified investors are attracted to Thar Block I (given the state of financial markets in 2009 and uncertainty over their performance over the next few years, financial close for an investment of this size may become problematic for reasons beyond control of the project. However, the transaction advisory Terms of Reference will include assistance to the Governments of Pakistan and Sindh through negotiations towards financial close.) 3. Project Description The project will be implemented as a partnership between the Province of Sindh (coal mining) and Government of Pakistan (coal-fired power development). The Project

activities will be implemented along the following three components: (i) overarching legal, regulatory and institutional strengthening; (ii) transaction advice for Thar Block I; and (iii) project management. Component 1: Sector Governance and Capacity Building The objective of this component is to facilitate coal-to-power sector development based on international good standards, including ancillary infrastructure development, by building the governments capacity to manage and supervise the sector. To this end, the component will comprise: A. Thar Coal assessment and technical studies (partially co-financed with the Government of Sindh under approved PC-IIs schemes): (i) field surveying and data interpretation related to Thar coalfield and in greater detail for Thar Block I for which more detailed technical assessment will be undertaken (ii) supervision / technical assistance with the interpretation of the regional hydro geological study (in coordination with surface water assessment under the Banks Sindh Water Sector Improvement Project) (iii) transmission needs study (in coordination with the Bank energy sector projects) (iv) environmental and social sector work, including environmental and social baseline assessments for the Thar coalfield, a strategic environmental and social assessment for coal-to-power sector, development of a general land-use plan for Thar coalfield and a Spatial Development Plan for Block I B. Policy, legal, regulatory and safeguards advice (i) developing overarching coal and coal bed methane to power sector policy/ legal/ regulatory / safeguards (including those related to mineral licensing and tendering procedures) (ii) setting up an operational environmental and social management framework for coal-to-power sector C. Institutional Reform and Capacity Building (i) strengthen the capacity of the provincial and federal governments to improve sector governance and attract quality private investments for coal and CBM (ii) strengthen and make operational TCEB, including development of procedures, guidelines, staff plans and capacity building (iii) Improve regulatory efficiency of the Government of Sindh, including setting up computerized mining cadastre system, geographical information system, (iv) build capacity of the Directorate General for Mines and Minerals (licensing authority), the Chief Mine Inspectorate, and Sindh Coal Authority Component 2: Transaction Advisory Services The objective of this component is to provide expert advisory services to help attract quality private investors to develop Thar Block I. The methodology and documentation that will be developed for this transaction will be applicable to forthcoming developments and will assist the government in structuring future coal-to-power transactions. Proposed

bid methodology is provided in Annex 4.1. The activities to be supported under this component will include: (i) Finalizing bid methodology for a coal mine and power plant(s), Information Memorandum, and Transaction Principles and Intentions policy document for Thar Block #1 (work will commence under the PPF funding) which will guide the transaction(s) (ii) Provision of transaction advisory services for a coal mine and power plant(s) transaction in Thar Block I, including preparation / issuance of requests for proposals, and assistance to the government with bid evaluations, negotiations, and financial closing. Component 3: Project Management and Communications The objective of this component is to ensure that project financed activities are supervised and managed in accordance with the Bank standards. The component will finance: (i) PMU staff costs, including sector specialists (mining, energy), procurement, financial management, environmental specialist, social specialist, water specialist, and communications specialist (ii) develop communications and outreach strategy in regards to the Project and to improve public consultations (iii) training, including short courses, and study tours (not covered under the consultants assignments) (iv) equipment for the project management (v) security contractors 4. Project Location and salient physical characteristics relevant to the safeguard analysis The project will be implemented in both urban and local areas. The federal level components will be implemented in Islamabad, provincial level - in Sindh Province (Karachi and Thar Coal area). 5. Environmental and Social Safeguards Specialists Mr Ernesto Sanchez-Triana (SASDI) Mr Chaohua Zhang (SASDI) Mr Mohammad Omar Khalid (SASDI) 6. Safeguard Policies Triggered Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) Yes X No X X X X X X X X X

II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The proposed project is limited to the provision of technical assistance and is not expected to result in any negative environmental or social impacts. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The anticipated future activities in the project area include development and opration of coal mine, construction and operation of coal-based power plants, and establishment and operation of associated ancillaries and support facilities. These activities may have significant potential impacts including changes in topography, land forms and land use; soil erosion/contamination; water consumption and/or contamination; air quality deterioration; loss of natural habitat and vegetation, and threat/damage to wildlife resources; land acquisition and involuntary resettlement issues; effects on the livelihoods of the local population; employment opportunities; safety and public health hazards for the local community; influx of workforce; and other environmental and social issues. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. NA 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. No safeguard policy issues are triggered for the proposed TA project. The TA will assist the government to assess salient issues and design social and environmental management systems to facilitate planning for activities needed to address potential social impacts of future coal mining and coal-based power production. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. NA

B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank 04/30/2009 Date of "in-country" disclosure 04/30/2009 Date of submission to InfoShop 04/30/2009 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors

Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: This a TA project which will support an environmental and social management framework and a strategic environment and social assessment. Details of the approach and content of these two outputs are publically disclosed. The disclosure note referred to above has been sent to the InfoShop for concurrent release. C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project N/A N/A N/A N/A N/A

N/A N/A

cost? Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by:
Task Team Leader: Environmental Specialist: Social Development Specialist Additional Environmental and/or Social Development Specialist(s):

N/A N/A

Name
Mr Michael C. Stanley Mr Mohammad Omar Khalid Mr Chaohua Zhang Mr Ernesto Sanchez-Triana

Date
04/20/2009 03/11/2009 03/11/2009

Approved by:
Regional Safeguards Coordinator: Mr Frederick Edmund Brusberg 04/23/2009 Comments: This TA project is cleared on the understanding that ISDS and ToR for ESMF and SESA will be disclosed. Sector Manager: Mr Paulo De Sa 04/29/2009 Comments: Cleared by Salman Zaheer, Sector Manager, Energy, SAR - 04/28/2009 and by Paulo de Sa, Sector Minager Oil, Gas & Mining, on 04/29/2009