Improving Governance in Africa
Addressing the potential negative effects of large hydro
Hydro projects that need to observe the strictest environmental and social impact standards require a full
Environmental and Social Impact Analysis (ESIA) when any of the following criteria are met:
☐ Dam projects involving the establishment of a reservoir of 1,000 ha or more affecting land used by local populations;
Power transmission lines of more than 110 kV, crossing highly populated, forested or cultivated areas;
Power generation plants of more than 30 MW.
Net proceeds of AfDB Green Bonds might finance large hydro as long as and only if net emission reductions
can be demonstrated (i.e. emission reductions from replacing fossil fuel generation minus emissions
generated from creating the reservoir e.g. cutting trees)
The Green Bonds project portfolio currently contains two hydro projects: ONEE Integrated Wind/Hydro in
Morocco and Itezhi-Tezhi in Zambia
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Case study: Itezhi-Tezhi hydro project
Planned electricity generation of clean hydro power will save an estimated 360,000 tonnes of CO2 emissions per year
As a category 1 project, a full ESIA was conducted for the Itezhi-Tezhi project which involved public consultations
(publicly available online*). A positive environmental externality of USD 39 million minimum is expected to be created
by the overall project
For the 404 persons affected by the project, a full Resettlement Action Plan was prepared and implemented in
accordance with the Bank's policy on involuntary resettlement including supporting the vulnerable to relocate. A
budgetary allocation was also provided by the Zambia Energy Utility Company (ZESCO) to ensure fair and timely
compensation of project affected persons
* http://www.afdb.org/fileadmin/uploads/afdb/Documents/Environmental-and-Social-Assessments/0305_Final%20Document%20_ITT_ESIA_RAP%20Summary.pdf
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