US Agency for International Development (USAID) USAID Bosnia and Herzegovina Amendment to the Initial Environmental Examination (IEE) for the USAID Energy Investment Activity Program/Project/Activity Data Activity/Project Name: USAID Energy Investment Activity (EIA) Assistance Objective: Economic Development Program Area: Economic Growth Country(ies) and/or Operating Unit: USAID/ Bosnia-Herzegovina Originating Office: USAID/Bosnia & Herzegovina, Economic Development Date: 11/24/17 PAD Level IEE: Yes No Supplemental IEE: Yes NoRCE/IEE Amendment: Yes No DCN of Original RCE/IEE: DCN of Amendment(s): n/a If Yes, Purpose of Amendment (AMD): To determine mitigation measures for adding natural gas activities that will increase the ceiling, time, and expand SoW by adding Gas SOW DCN(s) of All Related EA/IEE/RCE/ER(s): PAD-level IEE: DCN: 2014-BOS-009 Energy Investment Activity IEE: DCN: 2014-BOS-016 Implementation Start/End: AMD: FY 2018- 9/2019 LOP: 9/2014-9/2019 Funding Amount: LOP Amount: $7.18 million (PAD is $32.5) Contract/Award Number (if known): AID-168-C-14-00002 IEE Expiration Date (if any): n/a Reporting due dates (if any): n/a Background and Project Description 1.1. The purpose of this IEE is to recommend a Threshold Decision applicable to the scope of work proposed under the Energy Investment Activity (EIA) award modification to include work in the BiH gas sector. The modification will increase the award ceiling by $1.7 million. The activity will not be extended beyond its September 2019 close-out date; however this IEE reflects an “extension” through September 2019 in order to indicate changes to the IEE, per the Bureau Environmental Officer’s request. The initial Statement of Work remains unchanged from the originally approved IEE – aside from the added activities in the gas sector – and all conditions of the original IEE remain in effect. All added gas sector activities will be technical assistance (TA)
1.3. TA to develop recommendations for a minimum legal and regulatory framework for the BiH gas sector. Air, water, soil, waste, human health Low Low Opportunity to include all legislation and regulations in accordance with EU energy and environment Acquis, per Energy Treaty requirements. 2.7. Component 2: Analysis and recommendations for necessary legislative and regulatory framework for development of natural gas market processes. Defined/Illustrative Activities Potential Impacts Potential Climate Risk Climate Risk Rating Opportunities for Climate Resiliency 2.1 Develop a gap Analysis of existing BiH gas legislation and regulations. In addition, this analysis will consider the existing draft state Law on Regulator for Electricity, Natural Gas, Transmission and Electricity Market in Bosnia and Herzegovina in Order to identify changes that must be made in the Law to make connection of the BiH gas network to alternative gas supply sources possible. Particular attention will be paid to internal gas market development as well as integration of the BiH gas sector into the regional gas market. Also, consider in this activity the need to identify permanent utility corridors so other development does not occur by the pipeline Air, water, soil, waste, human health Low risk Low A Gap Analyses will identify legislation and regulations that are not in accordance with EU energy and environment Acquis, per Energy Treaty requirements. Stakeholders will use this analysis to improve legislation so that it is in line with EU requirements.
network. 2..2. The gap analysis will also address impediments for investment in the gas sector. Air, water, soil, waste, human health Low Low All draft changes of laws and regulations must fully include relevant and obligatory EU energy and environment Acquis, per Energy Treaty requirements 2.3. Draft changes in the existing or draft laws and regulations to enable gas sector development. Air, water, soil, waste, human health Low risk Low All draft changes of laws and regulations must fully include relevant and obligatory EU energy and environment Acquis, per Energy Treaty requirements. 2.8. Component 3: Nothing will be added 2.9. Component 4: On-going technical assistance to MOFTER and other relevant stakeholders on establishment of the legislative framework for gas sector in BiH, including assistance to public outreach and independent institutions that can promote and effectively regulate a more environmentally sustainable, secure, transparent and EU-oriented market-based energy sector. Defined/Illustrative Activities Potential Impacts Potential Climate Risk Climate Risk Rating Opportunities for Climate Resiliency 4.1. Provide TA to MOFTER and host country partners to advance implementation of the Third Liberalization Package in relations to all the above components Air, water, soil, waste, human health Low risk. Low TA will focus on assisting MOFTER in implementing EU Energy and Environmental regulations pertaining to climate change, water, and air quality, waste management, nature protection, industrial
Defined/Illustrative Activities Potential Impacts Mitigation Measures Recommended Threshold Determination Component 1: Analysis and recommendations to remove obstacles for investment in gas sector. 1.1.Technical assistance (TA) to review of gas pipelines development and sources of gas supply in the context of security of supply. 1.2. Technical assistance (TA) to recommend proposals for the development of the BiH gas pipeline network 1.3. TA to develop recommendations for a minimum legal and regulatory framework for the BiH gas sector. Air, water, soil, waste, human health Identification and analysis of applicable EU Acquis requirements and other relevant environmental considerations. Revised legislation and regulation will be in accordance with EU requirements and must meet all applicable EU environmental standards. The implementer will prepare such analysis as part of the intervention and the analysis will be subject to approval by the COR and MEO in consultation with the BEO. Under Component 2: Analysis and recommendations for necessary legislative and regulatory framework for development of natural gas market processes. 2.1. Technical Assistance (TA) to develop a Gap Analysis of existing BiH gas legislation and regulations. 2.2. Provide TA to develop gap analysis to address impediments for investment in the gas sector 2.3. Provide TA to draft changes in the existing or draft laws and regulations to enable gas sector development. Air, water, soil, waste, human health Identification and analysis of applicable EU Acquis requirements and other relevant environmental considerations. Revised legislation and regulation will be in accordance with EU requirements and must meet all applicable EU environmental standards. The implementer will prepare such analysis as part of the intervention and the analysis will be subject to approval by the COR and MEO in consultation with the BEO.