JAPAN BANK FOR INTERNATIONAL COOPERATIONGUIDELINES FOR CONFIRMATION OF
ENVIRONMENTAL AND SOCIAL CONSIDERATIONSJanuary 2015
JAPAN BANK FOR INTERNATIONAL COOPERATION

1

Preface
Japan Bank for International Cooperation (hereinafter referred to as“JBIC”) has revised the “Japan Bank for International Cooperation Guidelines for
Confirmation of Environmental and Social Considerations” (hereinafter referred
to as the “Guidelines”) enforced on April 1, 2012, and made these Guidelines
public. The Guidelines has the objective of contributing to the sound developmentof the international economy and society through environmental and social
considerations in all projects (hereinafter referred to as “project” or “projects”)
subject to lending, equity participation, and guarantee (hereinafter collectively
referred to as “funding”) by JBIC.

Environmental and social considerations refer

not only to the natural environment, but also to social issues such as involuntary
resettlement and respect for the human rights of indigenous peoples (hereinaftercollectively referred to as “environment”).
The Guidelines has been formulated on the basis of, among others,
discussions in the international framework on environmental and social
considerations and human rights, and discussions held at the Organisation for
Economic Co-Operation and Development (OECD) such as the “Recommendationof the Council on Common Approaches for Officially Supported Export Credits
and Environmental and Social Due Diligence”(hereinafter referred to as the“Common Approaches”), which requires consistency between public export credit
policies and environmental conservation policies. The Guidelines will be reviewed
as necessary in future, taking into account future progress made in these areas.
While encouraging appropriate environmental and social considerations inprojects subject to funding, JBIC will provide active support based on policies of
the Japanese government for projects that promote environmental conservation,and for projects that contribute to the preservation of the global environment,such as reduction of greenhouse gas emissions.

2Contents
Part 1
1. JBIC’s Basic Policies Regarding Confirmation of Environmental and Social
Considerations .................................................................................................... 4
2. Objectives and Meaning of the Guidelines ........................................................ 5
3. Basic Principles Regarding Confirmation of Environmental and Social
Considerations .................................................................................................... 5
4. Procedures for Confirmation of Environmental and Social Considerations .... 9
5. Disclosure of Information Regarding Confirmation of Environmental andSocial Considerations by JBIC ......................................................................... 13
6. Decision-making and Loan Agreements .......................................................... 15
7. Ensuring Appropriate Implementation of and Compliance with the Guidelines........................................................................................................................... 17
8. Application and Review of the Guidelines ....................................................... 17Part 2 (NB 1)
1. Environmental and Social Considerations Required for Funded Projects ..... 18
2. ESIA Reports for Category A Projects .............................................................. 24
3. Illustrative List of Sensitive Sectors, Characteristics and Areas ................... 25
4. Information Required for Screening Process ................................................... 27
5. Categories and Items in Checklist ................................................................... 28
6. Items Requiring Monitoring ............................................................................. 29

NB 1: Part 2 is inseparable from Part 1.
NB 2: If there is any ambiguity in English version and/or any inconsistency withJapanese version, the Japanese version prevails.

3[Part 1]
1. JBIC’s Basic Policies Regarding Confirmation of Environmental and Social
Considerations
JBIC confirms, through various measures, that project proponents
undertake appropriate environmental and social considerations so as to preventor minimize the impact on the environment and local communities, and notbring about unacceptable impacts which may be caused by the projects forwhich JBIC provides funding.
In its confirmation of environmental and social considerations, JBIC
places importance on dialogue with the host country (including local
governments), borrowers, and project proponents (hereinafter collectively
referred to as “borrowers and related parties”) regarding environmental andsocial considerations, while respecting the sovereignty of the host country.
JBIC also takes note of the importance of transparent and accountableprocesses, as well as the participation in those processes of stakeholders in the
project concerned, including local residents and local NGOs affected by the
project(hereinafterreferredtoas“stakeholders”).

JBIC

makes

the

environmental and social considerations required for projects to receive JBIC’s
funding clear in the Guidelines, and confirms those environmental and social
considerations.
In making its funding decisions, JBIC conducts screenings and reviews ofenvironmental and social considerations to confirm that the requirements are
duly satisfied.
JBIC makes the utmost efforts to ensure that appropriate environmental
and social considerations are undertaken in accordance with the nature of the
project for which JBIC provides funding as stated in the Guidelines, throughsuch means as agreements for funding (hereinafter referred to as “loanagreements”).
Over a certain period of time following funding decisions, JBIC will ifnecessary monitor or take steps to encourage borrowers and related parties toensurethat

appropriate

environmental4andsocialconsiderationsareundertaken.
In cases where it is involved in the planning and preparatory stages of a
project, JBIC will take steps to encourage borrowers and related parties toundertake appropriate environmental and social considerations from theearliest stage possible.
JBIC consistently strives to improve its organizational structure andoperational capacity to achieve sufficient and effective confirmation ofenvironmental and social considerations.

2. Objectives and Meaning of the Guidelines
The objective of the Guidelines is to encourage project proponents toimplement appropriate environmental and social considerations in accordancewith the Guidelines by making their procedures (both before and after funding
decisions are made), criteria for decision-making, and requirements which
projects subject to funding are to meet clear. In so doing, JBIC endeavors toensure transparency, predictability, and accountability in its confirmation ofenvironmental and social considerations.
3. Basic Principles Regarding Confirmation of Environmental and Social
Considerations(1) Parties Responsible for Environmental and Social Considerations
It is the project proponents that are responsible for environmental andsocial considerations for the project, and JBIC confirms such considerations inlight of the Guidelines.
JBIC encourages project proponents of projects seeking funding from JBIC
toundertakeappropriate

environmentalandsocialconsiderations

inaccordance with the nature of the project, based on the principles listed in
Section 1 of Part 2 of the Guidelines. JBIC also promotes awareness of theOECD Guidelines for Multinational Enterprises among appropriate parties
such as project proponents.

5(2) Confirmation of Environmental and Social Considerations by JBIC
For confirmation of environmental and social considerations, JBIC
undertakes:(a) classification of the project into one of the categories listed in Section
4.(2) of Part 1 (hereinafter referred to as “screening”);(b) reviews on environmental and social considerations when making adecision on funding, to confirm that the requirements are duly satisfied(hereinafter referred to as “environmental reviews”); and(c) monitoring and follow-up after the decision on funding has been made(hereinafter, such monitoring and follow-up processes will be simply
referred to as “monitoring”).
JBIC conducts screening and environmental reviews of projects for which
it intends to provide funding before making a decision.
In light of the Guidelines and taking into account the characteristics of the
project and the particular circumstances of the country and its location, JBIC
confirms in its environmental reviews: 1) whether appropriate and sufficientconsideration is given to environmental and social issues before theimplementation of the project, 2) whether appropriate environmental and social
considerations can be expected after JBIC makes decisions on the funding of the
project in light of such factors as the state of preparation by the project
proponent and host government, their experience, operational capacity, and thestate of securing funds, as well as external factors of instability.
JBIC

recognizes

thatconfirmationofenvironmentalandsocialconsiderations is an important aspect in the risk assessment for the funding,and carries out environmental reviews in strict conjunction with its financial,economic, and technical review of projects.
JBIC undertakes efficient pre-funding screening and environmental
reviews through, amongst other means, the appropriate use of “screening forms”
and “environmental checklists”, and places emphasis on post-funding
monitoring.

6

(3) Information Required for Confirmation of Environmental and Social
Considerations
JBIC conducts screening and environmental reviews based principally on
information provided by borrowers and related parties (in the case of export
finance, including exporters). JBIC may request additional information fromthe borrowers and related parties when necessary.
JBIC recognizes the importance of information provided not only by theborrowers and related parties, but also by governments and organizations ofhost countries, co-financiers and stakeholders, and utilizes such information inits screening and environmental reviews.
With respect to projects that are co-financed by other financial
institution(s), JBIC endeavors to exchange information on environmental andsocial considerations with the other institution(s) concerned.
For Category A projects (see Section 4.(2) of Part 1), JBIC checks theextentofstakeholder

participation

andinformation

disclosure

being

undertaken for the project, in accordance with the environmental impact
assessment systems of the host country.
JBIC may conduct surveys of proposed project sites by dispatchingenvironmental experts to confirm environmental and social considerations if
necessary.
JBIC may, if necessary, seek and make use of opinions from outside
experts.

(4) Standards for Confirmation of Appropriateness of Environmental and Social
Considerations
JBIC in principle conducts environmental reviews to confirm that projects
meet the requirements for environmental and social considerations stated in
the Guidelines in the following ways:
1) JBIC ascertains whether a project complies with environmental laws and7standards of the host nation and local governments concerned, as well as
whether it conforms to their environmental policies and plans.
2) JBIC also ascertains, regarding environmental and social considerations,
whether the project meets following standards.
 World Bank Safeguard Policies or International Finance Corporation(hereinafter referred to as “IFC”) Performance Standards
 Notwithstanding the above, IFC Performance Standards in the cases of(i) limited recourse or non-recourse project finance projects, (ii)structured financing transactions that share characteristics withproject finance, (iii) other financial institutions who are forming asignificant part of the project applying IFC Performance Standards,and (iv) other projects recognized as appropriate.
In addition, if there is a relevant section of the Environmental,
Health, and Safety Guidelines (EHS Guidelines) of the World Bank
Group, JBIC will confirm whether the projects meet that section.
3) Where appropriate, JBIC also refers to standards established by otherinternational financial institutions, other internationally recognized
standards, and/or standards or good practices established by developed
countries

such

as

Japan

as

benchmarks.

If

JBIC

believes

theenvironmental and social considerations of the project substantiallydeviate from these standards and good practices, it will consult with thehost governments (including local governments), borrowers, and project
proponents to confirm the background and rationale for such deviation, andthe measures to rectify it if necessary.

JBIC takes note of the importance of good governance with regard toprojects for the sake of appropriate environmental and social considerations.

(5) Influence on Funding Decisions
JBIC takes the outcomes of its environmental reviews into account for
decisions on funding. If, as a result of its environmental reviews, JBIC judges
8that appropriate environmental and social considerations are not ensured, it
will encourage the project proponent through the borrower to undertake
appropriate

environmentalandsocialconsiderations.

Ifappropriate

environmental and social considerations are not undertaken, there may becases where funding is not extended.
4. Procedures for Confirmation of Environmental and Social Considerations(1) Screening
Before starting environmental reviews of a project, JBIC classifies the
project into one of the following categories. The subsequent environmental
reviews will then be conducted in accordance with the procedures for thatcategory.
JBIC requests the borrowers and related parties to submit the necessary
information promptly, so that it may perform the screening process at an earlystage.
During the screening process, JBIC classifies each project in terms of its
potential environmental impact, taking into account such factors as: the sector
and scale of the project, the substance, degree and uncertainty of its potential
environmental impact, and the environmental and social context of the
proposed project site and surrounding areas.
Even after the screening based on the information provided by theborrowers and related parties is performed, JBIC may revise the categorization
when necessary, e.g., in cases where environmental impact requiringconsideration comes to light.

(2) Categorization
Category A:

A proposed project is classified as Category A if it is likely tohave a significant adverse impact on the environment. A
project with complicated impact or impact which is difficult
to assess due to lack of precedence is also classified as
Category A. The impact of Category A projects may affect9

an area broader than the sites or facilities subject tophysical construction. Category A, in principle, includes
projects

insensitive

sectorsorwith

sensitive

characteristics, and projects located in or near sensitive
areas.

An

illustrative

list

of

sensitive

sectors,

characteristics, and areas is given in Section 3 of Part 2.
Category B:

A proposed project is classified as Category B if its potential
adverse environmental impact is less adverse than that ofCategory A projects. Typically, its impacts are site-specific,
few if any are irreversible, and mitigation measures are
more readily available.

Category C:

A proposed project is classified as Category C if it is likely
to have minimal or no adverse environmental impact.
Projects that correspond to one of the following are, in
principle, classified as Category C, with the exception ofprojects with sensitive characteristics and projects locatedin sensitive areas as indicated in Section 3 of Part 2:
1) Projects for which the JBIC’s share is not above SDR 10
million;2) Sectors

orprojects

in

which

no

particularenvironmental impact is normally expected (e.g.,
supportforinternationalbalanceofpayments,

maintenance of existing facilities, acquisition of rights
and interests without additional capital investment); or
3) Cases in which involvement in the project of theborrower or JBIC is minor, such as the export/import orlease of machinery or equipment that is not connectedwith a particular project, and where there would be
little reasonable significance in JBIC’s conducting anenvironmental reviews.
Category FI:

A proposed project is classified as Category FI if it satisfies
all of the following: JBIC’s funding of the project is provided
to a financial intermediary etc.; the selection and
10assessment of the actual sub-projects is substantially
undertaken by such an institution after JBIC’s approval of
the funding, and therefore the sub-projects cannot be
specified prior to JBIC’s approval of funding (or assessmentof the project); and those sub-projects are expected to havepotential impact on the environment.
(3) Environmental Reviews for Each Category
After the screening process, JBIC carries out environmental reviews
according to the following procedures for each category.
Category A:

JBIC examines the potential negative and positiveenvironmental impact

of projects.

JBIC

evaluates

measures necessary to prevent, minimize, mitigate, orcompensate for potential negative impact, and measures toimprove the environment if such measures are available.
For category A projects, borrowers, and related parties
must submit following documents and JBIC conducts
environmental reviews based on, and after the receipts ofthese documents:
1) Environmental and Social Impact Assessment reports(see Section 2 of Part 2) and environmental permit
certificates issued by the host governments or otherappropriate authority (hereinafter collectively referred
to as “ESIA reports and permit certificates”)
2) For projects that will result in large-scale involuntary
resettlement

or

loss

of

means

of

livelihood,resettlement action plans, including where necessary,
livelihood restoration plans, (see Sub-section 7 ofSection 1. (Involuntary Resettlement) of Part 2)
3) For projects that will require measures for indigenous
peoples, indigenous people’s plans (see sub-section 8 ofSection 1. (Indigenous Peoples) of Part 2)11

Category B:

The scope of environmental reviews for Category B projects
may vary from project to project, but it is narrower thanthat for Category A projects. The environmental reviews for
Category B projects are similar to those of Category A
projects in that JBIC examines the potential negative andpositive environmental impact of the projects, and evaluate
measures necessary to prevent, minimize, mitigate, orcompensate for the potential negative impact. As part of thereview process, JBIC also conducts measures to improvethe environment if any such measures are available. JBIC
undertakes its environmental reviews based on information
provided by borrowers and related parties.

Where anenvironment impact assessment procedure has been
conducted, JBIC may refer to the ESIA reports and permit
certificates. However, this is not a mandatory requirement.
Category C:

C: For projects in this category, JBIC does not undertake
environmental reviews beyond screening.

Category FI:

JBIC checks through the financial intermediary etc. to see
whether

appropriate

environmentalandsocialconsiderations as stated in the Guidelines are ensured for
projects in this category.
In

conducting

theaforementioned

reviews,

JBIC

referstothecorresponding environmental checklists for each sector, and also considers
where appropriate any statements or reports made publicly available byJapan’s national contact point on the OECD Guidelines for Multinational
Enterprises.

(4) Monitoring
For category A and B projects, JBIC in principle confirms through theborrower the results of monitoring undertaken by the project proponents on theitems which have a significant environmental impact over a certain period oftime. This is in order to confirm the project proponents’ undertaking of12

environmental and social considerations.
The information necessary for monitoring needs to be supplied by theborrowers and related parties by appropriate means. When necessary, JBIC
may also conduct its own investigations.
When third parties point out in concrete terms that environmental andsocial considerations are not being fully undertaken, JBIC forwards such claims
to the borrowers and, if necessary, encourages them to request the project
proponents to take appropriate action.

In the project proponents’ response to

the claim, JBIC confirms that they carry out the investigation of the specificclaim, the examination of countermeasures, and their incorporation into theproject plans through transparent and accountable processes.
Also, when necessary, JBIC may request the cooperation of the borrowers
and related parties in conducting its own investigations to confirm the state ofundertaking of environmental and social considerations.
If JBIC judges that there is a need for improvement in the situation withrespect to environmental and social considerations, it may ask the project
proponent to take appropriate actions through the borrower and in accordancewith the loan agreement.

If the response of the project proponent is

inappropriate, JBIC may consider taking its own actions in accordance with theloan agreement, including the suspension of the disbursement.

5. Disclosure of Information Regarding Confirmation of Environmental andSocial Considerations by JBIC
(1) Basic Principles
JBIC welcomes information provided by concerned organizations andstakeholders, so that it may consider a diverse range of opinions andinformation in its environmental reviews and monitoring.
In order to encourage concerned organizations and stakeholders to provide
information to JBIC at an early stage, and to ensure its accountability andtransparency in the environmental reviews process, JBIC makes important
information on environmental reviews in ways appropriate to the nature of the13

project publicly available, while the environmental reviews are in progress.
JBIC may also, when necessary, seek the opinions of concerned organizations
and stakeholders.
In addition to the aforementioned principles, if requested by third parties,
JBIC will provide them with information regarding environmental and social
considerations within its capacity to do so.
JBIC pays due consideration to the confidentiality of the commercial andother matters of the borrowers and related parties, and observes concurrently
the principles of information disclosure and such confidentiality. As part of thiseffort,

JBIC

encourages

theborrowerandrelatedpartiesthattheenvironment-related documents subject to disclosure to be submitted by them
do not include commercially confidential information. In addition, theinformation whose disclosure is prohibited by the agreement between JBIC andthe borrower is disclosed at the consent of the borrower or at the request of thelaw.

(2) Timing of Disclosure and Content of Disclosed Information
1) Overview
JBIC discloses information in principle as set out below, depending on thenature of the project. Such disclosure is made, in principle, on JBIC’s website assoon as it obtains the information.
Through environmental reviews and monitoring, JBIC endeavors toachieve further disclosure of information by encouraging project proponents
through the borrowers and related parties, in compliance with the relevant laws
and ordinances in the host country.

2) Information disclosure at environmental reviews
JBIC discloses the following information before decision-making on
funding. It endeavors to make such disclosure well in advance of thedecision-making.

14 Upon completion of the screening, the name, country, location, outline,
and sector of the project, as well as its category classification and thereasons for such classification;
 For Category A and Category B projects, the status of acquirement of
the ESIA reports and permit certificates, and such ESIA reports andpermit certificates obtained from the borrowers and related parties forconfirming environmental and social considerations.
 The status of acquirement of documents other than ESIA reports andpermit certificates, and such documents obtained from the borrowers
andrelatedpartiesforconfirming

environmentandsocialconsiderations if such documents are publicly available in the hostcountry.
3) Information disclosure after signing of loan agreements
JBIC discloses the following information after signing the loan
agreements:
 For Categories A, B, and FI projects, results of its environmental
reviews
 For Categories A and B projects, results of the monitoring conducted by
the project proponents to the extent they are made public in the hostcountry.

6. Decision-making and Loan Agreements(1) Decision-making
JBIC takes the results of environmental reviews into account for its
decision-making on funding. If JBIC considers that a project is likely to have an
adverse impact on the environment due to inappropriate environmental andsocial considerations, it will encourage through the borrower the project
proponent to undertake appropriate environmental and social considerations. If
appropriate environmental and social considerations are not undertaken, JBIC
may decide not to extend funding.
15

Notwithstanding other provisions in the Guidelines, however, in
exceptional cases where, given the nature of the project, documents necessaryfor environmental reviews are not available at the time that a decision on thefunding must be made, JBIC may make a decision on the funding on thecondition that it will undertake the environmental reviews after decision
making. In this case, JBIC makes confirmation and disclosure with respect toenvironmental and social considerations prior to the decision-making to theextent possible, in addition to appropriately applying the policies andprocedures of the Guidelines upon environmental reviews. JBIC suspends
disbursement of the loan and declares all the outstanding principal at the time,with interest and any other charges thereon, to be payable immediately, if it isunable to confirm the appropriate environmental and social considerations
upon environmental reviews after decision making.

(2) Loan agreements
JBIC will make its utmost effort to ensure the following requirements in
its loan agreements or their attached documents, when it considers it necessary
to ensure undertaking of environmental and social considerations by borrowers
and related parties:
 The borrower shall report to JBIC on measures and monitoring related
to environmental and social considerations undertaken by the project
proponents. If, due to unforeseen circumstances, there is a possibility
that the requirements for environmental and social consideration may
not be fulfilled, the borrower shall report it to JBIC;
 If any problems regarding environmental and social considerations
arise, the borrower shall make efforts for discussions to be held
between the project proponents and project stakeholders; When project proponents and the host governments (including local
governments) other than the borrower have important roles to play interms of environmental and social considerations, the borrower shallendeavor to include these parties in entering into agreements; andIf it becomes evident that the borrower and the project proponents have not met
16the conditions required by JBIC under the Guidelines, or if it becomes apparent
that the project will have an adverse impact on the environment after funding is
extended due to the borrower’s or related parties’ failure to supply correct
information during the environmental reviews process, JBIC may, in accordancewith the loan agreement, suspend the disbursement or declare all the outstanding
principal at the time, with interest and any other charges thereon, to be payable
immediately.
7. Ensuring Appropriate Implementation of and Compliance with the Guidelines
JBIC endeavors to ensure appropriate implementation of the policies andprocedures stated in the Guidelines and compliance with the Guidelines.

In

order to ensure its compliance with the Guidelines, JBIC accepts objections
regarding its non-compliance with the Guidelines and takes necessary actions.

8. Application and Review of the Guidelines
After five (5) years have passed since the enforcement of the Guidelines,
JBIC verifies how the Guidelines was implemented for those five years, andbased on its findings, conducts a comprehensive review of the Guidelines. JBIC
may revise the Guidelines as needed. When making revisions, JBIC will seek
the opinions of, among others, the Japanese government, the governments ofdeveloping countries, Japanese companies, experts, and NGOs, while
maintaining transparency in the process. Notwithstanding the foregoing,
revisions of the Guidelines could be made when JBIC deems it necessary tokeep them in line with the Common Approaches, provided that JBIC shallsecure the transparency of the process.
These Guidelines will come into force from April 1, 2015.

17

[Part 2]
1. Environmental and Social Considerations Required for Funded Projects
In principle, appropriate environmental and social considerations shall be
undertaken, according to the nature of the project, based on the following:(1) Underlying Principles
 Environmental impact which may be caused by a project must be
assessed and examined from the earliest planning stage possible.
Alternative proposals or mitigation measures to prevent or minimize
adverse impact must be examined, and the findings of such examinations
shall be incorporated into the project plan: Such examination must include analysis of environmental costs andbenefits in as quantitative terms as possible and be conducted in close
harmony with economic, financial, institutional, social, and technicalanalysis of the project;
 Thefindings

oftheexaminationofenvironmentalandsocialconsiderations, including alternative proposals and mitigation measures,must be recorded as independent documents or as a part of otherdocuments.

Environmental and Social Impact Assessment (ESIA)

reports must be produced for projects in which particularly large adverse
environmental impact is expected; and For projects that have particularly significant adverse impact or are
highly contentious, a committee of experts may be formed to seek theiropinions as appropriate, in order to increase accountability.

(2) Examination of Measures Multiple alternative proposals must be examined to prevent or minimize
adverse impact and to choose a better project option in terms ofenvironmental and social considerations.

18

In examination of measures,priority is to be given to the prevention of environmental impact, andwhen this is not possible, minimizing and mitigating impact must be
considered next. Compensation measures must be examined only when
impact cannot be prevented by any of the aforementioned measures; and Appropriate follow-up plans and systems, such as monitoring plans andenvironmental management plans, must be prepared; and costs ofimplementing such plans and systems, and financial methods to fundsuch costs, must be determined.

Plans for projects with particularly

large potential adverse impact must be accompanied by detailed
environmental management plans.

(3) Scope of Impact to be Examined Environmental impact to be investigated and examined includes impact
on human health and safety as well as the natural environment throughair, water, soil, waste, accidents, water usage, ecosystem and biota; social
concerns including respect for human rights, such as involuntary
resettlement, indigenous people, cultural heritage, landscape, gender,
children’s rights, communicable diseases such as HIV/AIDS, working
conditions (including occupational safety) and community health, safety,
and security; and impact that may lead to trans-boundary and global
environmental problems. While air could include greenhouse gases (GHG),
specific requirements for environmental and social considerations on thisissue are to be made based on the Common Approaches; and In addition to the direct and immediate impact of projects, derivative,
secondary, and cumulative impact and impact of associated facilities arealso to be examined and investigated to a reasonable extent.

It is also

desirable to consider the impact throughout the life cycle of the project.
(4) Compliance with Laws, Standards and Plans
 Projects must comply with laws and regulations, and standards relating
toenvironmentalandsocialconsiderations

established

by

the

governments governing the project site (including both national and local
governments). They must also conform to policies and plans relating to19

environmental and social considerations established by the governments
governing the project site; and Projects must, in principle, be undertaken outside protected areas thatare specifically designated by laws or regulations of the government forthe conservation of nature or cultural heritage (excluding projects whose
primary objectives are to promote the protection or restoration of suchdesignated areas). Projects shall not impose significant adverse impact ondesignated conservation areas.
(5) Social Acceptability and Social Impacts
 Projects must be adequately coordinated so that they are accepted in amanner that is socially appropriate to the country and locality in which
the project is planned.

For projects with a potentially large

environmental impact, sufficient consultations with stakeholders, such as
local residents, must be conducted via disclosure of information from anearly stage where alternative proposals for the project plans may be
examined.

The outcome of such consultations must be incorporated into

the contents of the project plan; and Appropriate consideration must be given to vulnerable social groups, suchas women, children, the elderly, the poor, and ethnic minorities, all ofwhom are susceptible to environmental and social impact and who may
have little access to the decision-making process within society.
(6) Ecosystem and Biota
 Projects

must

not

involvesignificant

conversion

orsignificant

degradation of critical natural habitats including critical forests areas
 In case the project involves the significant conversion or degradation ofnatural habitats including natural forests, priority is to be given to theprevention of environmental impact. When this is not possible,
appropriate mitigation measures must be established. Evaluation of the
impact on natural habitats by the project and consideration for the offset
measures should be based on expert opinion.
 Illegal logging of forests must be avoided.

For the projects involving

commercial harvest, the project proponents are encouraged to obtain
20

certifications by forest certification systems as a way to ensure preventionof illegal logging.
(7) Involuntary Resettlement
 Involuntary resettlement and loss of means of livelihood are to be avoided
where feasible, exploring all viable alternatives.

When, after suchexamination, it is proved unfeasible, effective measures to minimize
impact and to compensate for losses must be agreed upon with the people
who will be affected;
 People to be resettled involuntarily and people whose means of livelihood
will be hindered or lost must be sufficiently compensated and supportedby the project proponents, etc. in a timely manner.

Prior compensation,

at full replacement cost, must be provided as much as possible.
 The project proponents, etc. must make efforts to enable the people
affected by the project to improve their standard of living, income
opportunities, and production levels, or at least to restore them topre-project levels.

Measures to achieve this may include: providing land

and monetary compensation for losses (to cover land and property losses),
supporting the means for an alternative sustainable livelihood, andproviding the expenses necessary for relocation and the re-establishmentof a community at relocation sites; Appropriate participation by the people affected and their communities
must be promoted in planning, implementation, and monitoring of
involuntary resettlement action plans and measures against the loss of
their means of livelihood.

In addition, appropriate and accessible

grievance mechanisms must be established for the people affected andtheir communities; and For projects that will result in large-scale involuntary resettlement orlarge-scale loss of means of livelihood, resettlement action plans must be
prepared and made available to the public. In preparing a resettlement
action plan, consultations must be made with the affected people andtheir communities based on sufficient information made available to themin advance.

When consultations are held, explanations must be given in

a form, manner, and language that are understandable to the affected21

people.

It is desirable that the resettlement action plan include

elements required in the standard of the international financial
institution which JBIC benchmarks in its environmental reviews.
(8) Indigenous Peoples
 Any adverse impact a project may have on indigenous peoples is to be
avoided where feasible, exploring all viable alternatives.

When, after

such examination, it is proved unfeasible, effective measures to minimize
impact and to compensate for their losses must be taken for indigenous
peoples; When a project may have adverse impact on indigenous peoples’ various
rights in relation to land and resources, such rights must be respected inaccordance with the spirit of the relevant international declarations andtreaties, and free, prior, and informed consents must be obtained; and Measures for the affected indigenous peoples must be prepared as an
indigenous peoples plan (which may constitute a part of other documents
for environmental and social considerations) and made public incompliance with the relevant laws and regulations in the host country.
In preparing the indigenous peoples plan, consultations must be madewith the affected indigenous peoples based on sufficient information madeavailable to them in advance.

When consultations are held, it isdesirable that explanations be given in a form, manner, and languagethat are understandable to indigenous peoples.

It is desirable that theindigenous peoples plan include the elements required in the standard of
the international financial institution which JBIC benchmarks in its
environmental reviews.
(9) Monitoring It is desirable that, after a project begins, the project proponents monitor:(i) whether any situations that were unforeseeable before the project
began have arisen, (ii) the implementation situation and the effectivenessof the mitigation measures prepared in advance, and that they then takeappropriate measures based on the results of such monitoring;22 In cases where sufficient monitoring is deemed essential for theachievement of appropriate environmental and social considerations,such as the projects for which mitigation measures should be
implemented while monitoring their effectiveness, project proponents
must ensure that project plans include monitoring plans which arefeasible; It is desirable that project proponents make the results of the monitoringprocess available to project stakeholders; and When third parties point out, in concrete terms, that environmental andsocial considerations are not being fully undertaken, it is desirable that aforum for discussion and examination of countermeasures be establishedbased on sufficient information disclosure and with the participation of
stakeholders in the relevant project. It is also desirable that anagreement be reached on procedures to be adopted with a view toresolving the problem.

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2. ESIA Reports for Category A Projects
The following conditions are met in principle:
 When assessment procedures already exist in host countries, andprojects are subject to such procedures, borrowers and related parties
must officially complete those procedures and obtain the approval of thegovernment of the host country;
 ESIA reports (which may be referred to differently in different systems)
must be written in the official language or a language widely used in
the country where the project is to be implemented.

When explaining

projects to local residents, written materials must be provided in alanguage and form understandable to them;
 ESIA reports are required to be made available in the country and to
the local residents where the project is to be implemented.

The ESIA

reports are required to be available at all times for perusal by projectstakeholders such as local residents, and copying of the reports
permitted;
 In preparing ESIA reports, consultation with stakeholders, such as
local residents, must take place after sufficient information has been
disclosed.

Records, etc. of such consultations must be prepared; Consultations with relevant stakeholders, such as local residents,
should take place if necessary throughout the preparation andimplementation stages of a project.

Having consultations is highly

desirable, especially when the items to be considered in the ESIA are
being selected, and when the draft report is being prepared; and It is desirable that ESIA reports cover the items stipulated in the
Common Approaches.

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3. Illustrative List of Sensitive Sectors, Characteristics and Areas
１． Sensitive Sectors
Large-scale projects in the following sectors:(1)

Mining(2)

Oil and natural gas development(3)

Pipelines(4)

Iron and steel (projects that include large furnaces)(5)

Non-ferrous metals smelting and refining(6)

Petrochemicals (manufacture of raw materials; including complexes)(7)

Petroleum refining(8)

Oil, gas and chemical terminals(9)Paper and pulp(10) Cement plants (including a greenfield quarry)(11) Manufacture and transport of toxic or poisonous substances regulated
by international treaties, etc.
(12) Thermal power(13) Nuclear power(14) Hydropower, dams and reservoirs(15) Power transmission and distribution lines involving large-scale
involuntary resettlement, large-scale logging or submarine electricalcables(16) Roads, railways and bridges(17) Airports(18) Ports and harbors(19) Sewage and wastewater treatment having sensitive characteristics or
located in sensitive areas or their vicinity(20) Waste management and disposal(21) Agriculture involving large-scale land-clearing or irrigation(22) Forestry(23) Tourism (construction of hotels, etc.)
２． Sensitive Characteristics(1)

Large-scale involuntary resettlement or large-scale loss of means of25

livelihood(2)

Large-scale groundwater pumping(3)

Large-scale land reclamation, land development and land-clearing(4)

Large-scale logging

３． Sensitive Areas
Projects in the following areas or their vicinity:(1)

National parks, nationally-designated protected areas (coastal areas,
wetlands, areas for ethnic minorities or indigenous peoples andcultural heritage, etc. designated by national governments)(2)

Areas considered to require careful consideration by the country or
locality< Natural Environment>a)Forests with important ecological value (including primary
forests and natural forests in tropical areas)b)

Habitats with important ecological value (including coral reefs,
mangrove wetlands and tidal flats)c)

Habitats of rare species requiring protection under domestic
legislation, international treaties, etc.

d) Areas in danger of large-scale salt accumulation or soil erosione)Areas with a remarkable tendency towards desertification< Social Environment>a)Areas with unique archeological, historical or cultural valueb)Areas inhabited by ethnic minorities, indigenous peoples or
nomadic peoples with traditional ways of life (including areas
which are used for cultural and spiritual purposes) and otherareas with special social value

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4. Information Required for Screening Process
The following data shall be used in principle to conduct screening.

When

necessary, additional data may be required depending on the nature of the
project and peripheral circumstances, etc.

(Items to be Listed)
１． Permits and Approvals
 Need for permits and approvals for Environmental Impact Assessment
 Status of acquisition of permits and approvals for EIA
 Date of issue of permits and approvals for EIA
 Names of organizations issuing permits and approvals for EIA
 Status of acquisition of other environmental permits and approvals
２． Project Details
 Location of project site
 Project Description
 Relevant sector
 Scale, etc. of project
３． Environmental Impact
 Degree of environmental impact
 Existence of sensitive areas
 Existence of sensitive characteristics
 Scale of sensitive characteristics

27

5. Categories and Items in Checklist
The checklists include the following categories and items related to theenvironment.

When using these checklists, the appropriate items should bechecked based on the sector and nature of the project.
(Category)(Item)

1. Permits and approvals, 
explanations
2. Anti-pollution measures

3. 3. Natural environment

4. Social environment

EIA and environmental permitsExplanations to the PublicAir quality



Water quality



Waste



Soil contamination

Noise and vibration

Subsidence



Odor



SedimentProtected areasEcosystem and biotaHydrologyTopography and geologyManagement of abandoned sites



Resettlement

Living and livelihoodHeritageLandscape Ethnic minorities and indigenous peoples
 Working conditions (including occupationalsafety) Community health, safety, and security
5. OtherImpact during construction

Accident prevention measuresMonitoring28

6. Items Requiring Monitoring
Items requiring monitoring shall be decided according to the sector andnature of the project, with reference to the following list of items.
(Items)
1. Permitsand 

Response to matters indicated by authorities

approvals,
explanations
2. Anti-pollution

Air quality: SO2, No2, CO, O2, soot and dust,

measuressuspendedparticulatematter,coarseparticulate, etc.


Water quality: pH, SS (suspended solids), BOD(biochemical oxygen demand) / COD (chemical
oxygen demand), DO (dissolved oxygen), total
nitrogen, total phosphorus, heavy metals,
hydrocarbons, phenols, cyanogen compounds,
mineral oils, water temperature, etc.

3. Natural



Waste



Noise and vibration



Odors



Ecosystems:

environment
4. Socialenvironment

Impactonvaluable

species,countermeasures, etc


Resettlement

Living and livelihood

NB: For air and water quality, specify whether you are monitoring emission levels
or environmental levels.

Also, it should be noted that the items which

require monitoring will differ depending on whether the impact in question
will occur during construction or during the operation of the project.

29