Donor Co-Financing Assessment for New Country Strategy
7. Implementation Risks, Environmental and Social
Implications
Risks to Strategy Implementation
Probability Effect
European Bank
for Reconstruction and Development
•
•
Absence of reforms that could attract FDI
or increase private investment
No progress in advancing renewable
energy regulatory reform
No progress towards EU candidacy as a
result of political stalemate and the
pandemic
Continued stalemate in SOE reform
Decrease in donor support hindering
EBRD activities reliant on concessional
co-financing
Low competitiveness on pricing of private
sector loans, compared to a liquid
domestic banking sector, hampering the
Bank's ability to deliver Transition Impact
through private sector projects.
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•
Environmental and Social Implications
Assessment and Management of E&S Impacts: Ensure that direct, indirect, cumulative and
transboundary E&S impacts of projects are appropriately assessed and mitigated in
accordance with the EU EIA Directive and EBRD ESP and Performance Requirements (PRS).
TC support to clients with the implementation of E&S management systems and contractor
management according to international standards may be required.
Labour and Working Conditions: Ensure that clients' labour practices comply with EBRD
PR2, particularly in respect of labour rights and working conditions; contractor management
and primary supply chain, as well as prevention of gender-based violence and harassment
(GBVH) and sexual exploitation and abuse (SEA).
Resource Efficiency and Pollution Prevention and Control: Challenges remain in waste &
wastewater collection and treatment and air pollution. Support clients to comply with
relevant EU Directives and improve the efficiency of industry-specific processes in line with
BAT as part of GET mandate. Develop circular economy and resource efficiency projects and
transition to a low carbon economy through renewable energy projects, and strengthen
resilience and adaptation to climate change.
Health, Safety and Security: Assist in improvement of occupational and community health
and safety inter alia infrastructure and energy projects. TC funds may be required to
improve road and rail safety.
Land Acquisition, Involuntary Resettlement and Economic Displacement: Ensure that any
projects requiring acquisition of land, either permanently or temporarily, comply with
compensation and livelihood restoration requirements of the Bank, and impacted
stakeholders including vulnerable groups are meaningfully engaged and consulted.
Biodiversity Conservation and Sustainable Management of Living Natural Resources:
Challenges remain concerning the need to adequately consider the potential risks and
impacts of project related activities to sensitive and/or legally protected and internationally
recognised areas of biodiversity value. Ensure that species and habitats of conservation
importance are protected particularly where projects encroach upon protected areas,
Emerald sites, IBA and/or Key Biodiversity Areas. TC funds for robust biodiversity
assessments and/or implementation of particular biodiversity mitigation plans may be
required.
Cultural Heritage: Work with clients to ensure appropriate assessment processes and
mitigation plans are in place to protect tangible and intangible cultural heritage and to
identify and consult with key stakeholders.
Financial Intermediaries: Ensure that FI partners have adequate E&S capacity and risk
management procedures in place.
High Medium
Low
•
Stakeholder Engagement: Support clients in developing and implementing stakeholder
engagement plans to ensure meaningful consultation and public disclosure are carried out
effectively throughout the project lifecycle.
PUBLIC
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