PAKISTAN: ENERGY EFFICIENCY INVESTMENT PROGRAM
environmental impact Assessment">environmental assessment AND REVIEW FRAMEWORK
The Government of Pakistan (GoP) has requested the Asian Development Bank (ADB) to provide a multitranche financing facility (MFF) to implement a systemic energy efficiency investment program under a flexible public sector financing mechanism to (i) scale up the deployment of proven energy efficiency technologies in energy supply and use, and (ii) establish a viable energy efficiency market. The proposed MFF will establish a dynamic business environment and transform the energy efficiency market in Pakistan. This MFF will finance priority projects that (i) increase energy supply and (ii) reduce peak loads. This will help strengthen Pakistan’s energy security, optimize the energy mix and balance energy demand and supply.
Energy efficiency and conservation has been a concern in today’s culture. Global warming, energy security and fossil fuel depletion have people concerned about their consumption of energy. Lifestyle changes had to be made to become less energy dependent and more energy conscious. People have made personal changes to take their part in saving the planet but some may wonder if their contribution ...
This Environmental Assessment and Review Framework (EARF) identifies the broad scope of the MFF and outlines the policy, procedures, and institutional requirements for preparing the environmental assessments of the subsequent projects under the MFF loan. This EARF shall apply to all projects under the MFF, so as to ensure that the environmental impacts are appropriately addressed and mitigated to acceptable levels.
The MFF funding from the ADB is expected to be released in stages (tranches).
Under the MFF loan procedures of the ADB, implementation of safeguards is to be achieved by environmental assessment of every project to be undertaken following the ADB’s Environment Policy 2002. The constituent projects in the Program generally concern investments in existing institutions and are not be likely to affect sensitive areas, forests or wetlands, and might typically be expected to been classified as Category B or C under the ADB’s Environmental Assessment Guidelines 2003 that will be followed for all projects.
GoP regulations (Pakistan Environmental Protection Agency Review of Initial Environmental Examination and Environmental impact assessment Regulations 2000) categorize development projects into two schedules, according to their potential environmental impacts. Proponents of projects that have reasonably foreseeable impacts are required to submit an initial environmental examination (IEE) for their respective projects (Schedule I).
Projects that have potentially more adverse environmental impact (Schedule II) are required to submit an environmental impact assessment (EIA) to the respective provincial Environmental Protection Agency (EPA).
The requirements for EIA and IEE for different projects under the EEIP Program will vary.
INVESTMENT PROGRAM DESCRIPTION
Since 2006, Pakistan has been facing an acute energy crisis caused by (i) insufficient energy supply capacity, (ii) poor sector performance, (iii) increasing demand, and (iv) inefficient use of energy resources. The Government of Pakistan is struggling to resolve the crisis. Currently planned capacity additions will take at least another five years to start coming online. Ad hoc measures are therefore being taken, to little immediate avail, while more shortages loom over an already overstretched energy system. As Pakistan’s economy grows and industrializes, standards of living continue to improve consequently. Coupled with rapid population growth, this is causing a steep increase in energy demand. Energy efficiency is identified as the least-cost
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