Strategic Environmental Assessment of the Energy Sector Policy in Rwanda – Terms of Reference
Strategic Environmental Assessment of the Energy Sector Policy in Rwanda
Terms of Reference
1. BACKGROUND
The guidelines of the European Development Fund (EDF) and Rwanda Environment Management Authority (REMA) strongly suggest a Strategic Environmental Assessment (SEA)of the energy sector policy in Rwanda be carried out in order to provide support and environmental guidance during the preparation and implementationof aSector Reform Contract (SRC) for Sustainable Energy funded under the 11thEDF.
The objective of the SRC for Sustainable Energywill be aligned with the national energy strategy. This strategy outlines its main objectives, which include the following: 1) to provide sufficient, reliable, affordable and sustainable energy supply with particular focus given to renewable, clean energy sources; 2) to assure the rational and efficient use of energy at all levels; and 3) to establish environmentally sound and sustainable systems of clean energy production, procurement, transportation, distribution and end use.
The major policies, strategic plans, programmes and guideline documents to be considered are:
- Draft version of Rwanda's National Energy Policy expected April 2014.
- Energy Sector Strategic Plan (2013-2018), Ministry of Infrastructure (MININFRA).
- Constitution of the Government of the Republic of Rwanda. May 26, 2003.
- Rwanda Vision 2020. Government of the Republic of Rwanda (GoR). 2000.
- Economic Development & Poverty Reduction Strategy 2013-2018. The Republic of Rwanda.
- Guidelines on the Integration of Environment and Climate Change in Development Cooperation, EuropeAid, December 2011.
- Environmental Integration Handbook for EC Development Co-operation. European Commission. 2007.
- Rwanda State of Environment and Outlook, REMA, 2009.
- Environmental Profile Rwanda, European Commission/Rep. of Rwanda, Kigali, July 2006.
- General Guidelines and Procedures for Strategic Environmental Assessment (SEA), REMA June 2011.
- General Guidelines and Procedures for Environmental Impact Assessment (EIA), REMA, November 2006.
- Rwanda Energy Sector Review and Action Plan. 2013. African Development Bank.
- Green Growth and Climate Resilience: National Strategy for Climate Change and Low Carbon Development. Republic of Rwanda. Kigali, October 2011.
- Karisimbi Geothermal Exploration Drilling Project: Environmental and Social Impact Assessment. EWSA. September 2013.
- Kinigi Geothermal Exploration Drilling Project: Environmental and Social Impact Assessment. EWSA. September 2013.
The key stakeholders for the SEA are:
Ministry of Infrastructure (MININFRA) is the lead Ministry and is charged with developing institutional and legal frameworks, policies, strategies and master plans relating to the Energy sector. One of its core functions is to initiate, develop and maintain sustainable power generation facilities to supply clean, cost-effective and uninterrupted energy for the country and the region. Furthermore, it has been tasked with supervising actions to mobilize resources and partnership in the area of energy at a national and regional level.
Rwanda Environment Management Authority (REMA) is required by law to oversee environmental assessment requirements in policies, plans, and development programmes and to advise the GoR on policies, strategies, and legislation related to the management of the environment. Under this mandate, REMA develops facilitative and legal instruments in the form of guidelines and regulations for implementing its oversight functions. Environmental assessment guidelines for Rwanda, including general guidelines for EIA and several sector-specific EIA guidelines as well as for Environmental Auditing have been developed and mainstreamed. SEA guidelines have been developed within this regulatory framework. The legal responsibility for conducting SEA of Policies, Plans and Programmes (PPPs) lies with the lead agency, while REMA provides the necessary oversight.
Ministry of Natural Resources' (MINIRENA) mandate includes the elaboration and dissemination of national policies, strategies and programs that aim at conserving the environment and ensuring optimal and rational utilization of natural resources; conducting exhaustive assessment of Rwanda's ground and surface natural resources and establish appropriate mechanisms for their national extraction and promotion; and monitoring and assessing the implementation and mainstreaming of policies and laws that enhance the protection of environment and the rational utilization of natural resources in all cross-cutting sectors in the country.
The Energy Water and Sanitation Authority's (EWSA) mission is to implement government policy for developing energy, water and sanitation sectors through the coordination, conception, development, monitoring and evaluation of the actions and programs that are within the framework of its mission. Specifically on energy, EWSA's key roles include the following: coordination of all activities related with and programs aimed at development and exploitation of energy sources; proper management of electricity infrastructure, gas and petroleum products; coordination of all activities related to programs aimed at promoting and exploiting energy resources in the country; and conducting analytical studies on energy supplies and demand, evaluation and programming of actions for energy sector activities.
The Ministry of Finance and Economic Planning (MINECOFIN) will ensure the provision of funding for the different Ministries that are party to the energy sector and operational/managerial agencies arising out of this policy. MINECOFIN requires sectors to demonstrate environmental sustainability in their mandated activities before operational budgets can be allocated. A funding mechanism for SEA (just as already established for EIA in Rwanda) may be considered in the near future.
The Rwanda Natural Resources Authority (RNRA), specifically the Lands and Mapping Department, will be consulted during the SEA as some of its main responsibilities are to prepare, publish and update all or parts of different maps of Rwanda including land use maps, to define standards for spatial information and land information data collection; and to be a customer point and provider for various digital and hard maps and digital data purchase. The information available from RNRA, as well as consultation with its authorities and technicians, would be fundamental for the achievement of a high quality SEA.
The Office of the Prime Minister has the general responsibility of coordinating and monitoring the implementation of government policies and programs. Specifically the PM Office has the responsibility of monitoring and submitting reports to the President of the Republic of Rwanda on the implementation of government policies and programs in both central and local government institutions as well as setting up tools and mechanisms for the monitoring and evaluation of government policies.
The Private Sector Federation – Rwanda (PSF) is a professional organization dedicated to the promotion and representation of the interests of the Rwandan business community. It is an umbrella organization that groups 9 professional chambers and replaced the former Chamber of Commerce and Industry in 1999.
The involvement of various Non-State Actors (NSAs), higher learning and research institutions in environment management in Rwanda will be important along the scoping and SEA study process.
The legal background for the SEA can be summarized as follows:
Principle 1 of Article 7 in Rwanda's Organic Law 04/2005 stipulates precautionary measures that are informed by the results of both environmental assessment of policies, plans, projects, and development activities and assessment of social well-being. Environmental Impact Assessments are adequately treated in the law, and steps are being taken to ensure the mainstreaming of Strategic Environmental Assessments. There is a Ministerial Order on SEA, and a list of programmes that must undergo a SEA is scheduled for completion in July 2014. The programmes included in the aforementioned list are required to undergo a SEA as it has now been mainstreamed in the Budget Call Circular of MINECOFIN. The SEA Directive 2001/42/EC of the European Parliament and of the Council on the Assessment of the Effects of Certain Plans and Programmes on the Environment applies to a wide range of public plans and programmes (e.g. on land use, transport, energy, waste, agriculture, etc). The SEA Directive, in force since 2001, does not refer to policies. Plans and programmes in the sense of the SEA Directive must be prepared or adopted by an authority (at national, regional or local level) and be required by legislative, regulatory or administrative provisions. An SEA is mandatory for plans/programmes which (i) are prepared for agriculture, forestry, fisheries, energy, industry, transport, waste/ water management, telecommunications, tourism, town & country planning or land use, and which set the framework for future development consent of projects listed in the EIA Directive; or (ii) have been determined to require an assessment under the Habitats Directive.
Environment and SEA within the context of Sector Reform / Sector Policy Support Programmes
SEA determines whether the Energy sector policy is consistent with the country's and the EU's environmental policy objectives[1], and whether the environmental impacts of energy policy implementation are likely to be significant. On the basis of this analysis it provides feedback to the Government to enhance the environmental dimension of the energy policy, and also enables improved integration of the environment into SRC formulation. In the context of EU development co-operation, SEA can take the form of an EU-driven process to provide an input into the formulation of the SRC. Only sector programmes with potential significant impacts on the environment when implemented will require an SEA, as determined through an SEA screening process.
2. DESCRIPTION OF THE ASSIGNMENT
2.1 GLOBAL OBJECTIVE
Ensure that environmental concerns are appropriately integrated in all Energy sector decision-making, implementation and monitoring processes. It is anticipated that the findings of the SEA may influence policy development in the Energy sector.
2.2 SPECIFIC OBJECTIVES
Describe, identify and assess the likely significant effects on the environment of implementing the energy policies from MININFRA,as well as the most important environmental and natural resource-related constraints bearing on the implementation of any related programmes.
Provide decision-makers of the GoR, the EU and other Development Partners (DPs) in Rwanda with relevant information (quantitative and qualitative) to assess the adequacy of environmental considerations when supporting the implementation of the Energy Sector Strategic Plan/Policy. This information should help ensure that environmental concerns are appropriately integrated in the decision-making processes at the stages of programming, planning and implementation.
Assess the degree to which the EU's planned Energy SRC programme addresses the major environmental sustainability challenges in the Energy sector and provide recommendations at strategic level on how potential negative effects can be minimized and how positive effects can be optimized. Particular focus will be given to the adequacy of institutional structure and capacities at the national and local level, as well as of the regulatory framework, to address key environmental concerns associated to the Energy sector.
2.3 REQUESTED SERVICES
The SEA is composed of two parts: a scoping study and an SEA study. The scoping study will define the issues that need to be addressed in the SEA study, considering the specific context in which the sector programme is being developed and is likely to be implemented. Precise activities and calendar for the SEA study will be determined on the basis of the conclusions of the scoping study.
The scoping study will provide:
- a description of the sector programme concerned;
- a brief description of the environmental requirements of the EU relevant to the Energy sector;
- a brief description of the institutional and legislative framework of the Energy sector in Rwanda;
- a brief presentation of the relevant environmental policy and objectives in the country;
- an identification of the key stakeholders and relevant authorities for the SEA and their concerns, as this is critical to ensure buy-in and ownership (see step 6 of SEA Guidelines for Rwanda);
- an identification of the key sector programme-environment interactions (potential environmental and environmentally-linked social impacts of its implementation, the degree to which the SRC programme addresses the key environmental concerns of the Energy sector);
- a description of the scope of the environmental baseline to be prepared during the SEA study and the main sources from which the baseline will be compiled;
- an identification of the impact identification and evaluation methodologies to be used in the SEA study;
- a description of the stakeholder engagement mechanisms proposed for the SEA study;
- an indication of the time frames (person-days), costs and resources needed to carry out the SEA study;
- a proposal of the methodology for the SEA(see Annex).
The SEA study will deliver the following results:
- an environmental assessment of the EU's planned SRC programme for Sustainable Energy, taking into account the potential environmental impacts of their implementation and their consistency with the GoR's and EU's environmental policies and objectives;
- recommendations for SRC formulation (including performance indicators, use of technical assistance and other aid delivery methods) and for sector programme enhancement;
- recommendations to the EU which may include possible adjustments of environmental and socio-economic performance indicators, accompanying measures to deal with identified challenges (notably in the area of M&E capacities), as well as priority issues for policy dialogue and coordination with GoR and DPs.
2.4 REQUIRED OUTPUTS
2.4.1. Scoping Study
Overview of the sector programme and its institutional and legislative framework
The policy-making and/or planning process relating to the sector under assessment should be presented, including alternative options that may be under discussion. If deemed necessary and with adequate justification, additional options should be suggested for consideration in the SEA study. Where a sector policy/programme already exists, its main features should be described.
The institutional and legislative framework relating to the sector should be described. Particular attention should be paid to institutions and entities responsible for dealing with environmental aspects involved in the implementation of the sector policy and programme, as well as to the relevant environmental policy and legislation and wider policy framework related to the sector policy and programme.
The links between the policy-making/planning process and the SEA must be described, i.e. which outputs of the policy-making/planning process should feed into the SEA process and vice-versa. The specific policy-making/planning decisions and processes that should be influenced by the SEA must be identified, especially aspects of SRC formulation.
Description of key stakeholders and their concerns
The involvement and active participation of stakeholders in the SEA process is a key success factor. Key stakeholders should be identified: key groups and institutions, environmental agencies, non-governmental organisations, representatives of the public and others, including those groups potentially affected by the likely environmental impacts of implementing the sector programme. Particular attention should be paid to involving typically less represented groups such as women, indigenous peoples and minority groups.
The Consultants must review records of any national public consultation processes that may have taken place as part of the sector programme preparation process. Based on this review and on additional consultations, they should identify key stakeholders’ concerns and values with respect to the sector programme under consideration and propose a stakeholder engagement strategy. The stakeholder engagement strategy to be employed has to be agreed with the EU Delegation and MININFRA before being implemented, in order to avoid unnecessary conflicts or raising of expectations. This strategy should provide stakeholders with an opportunity to influence decisions. If some of the identified stakeholders are not used to being engaged, particularly at the strategic level, and if there are no precedents, it would be important to include an education component in the stakeholder engagement process.
The Consultants must keep records of all consultation held and comments received. The outcome of these consultations will have important implications for the direction and focus of the SEA study. Consequently, a structured analysis of the available material will be needed to determine the key conclusions and areas of concern. The Consultants will have to ensure wide participation, but at the same time consider the possibility of participation 'fatigue'.
Description of key environmental aspects to be addressed in the SEA
On the basis of the policy, institutional and legislative framework analysis, as well as the participation of stakeholders, the key environmental aspects (including climate-related ones) that should be addressed in the SEA study should be identified – that is, the key sector programme–environment interactions that need to be given special consideration and emphasis.
The Government of Rwanda has placed considerable emphasis on geothermal energy as a part of their roadmap towards substantially increasing energy generation. Since the GoR has only recently started exploring geothermal energy, and only a few geothermal Environmental Impact Assessments have been conducted in Rwanda, a particular focus should be placed on geothermal energy during the scoping study.
Specific aspects to be explored include (non-exhaustive list):
- Sustainable energy included as a priority issue in national-level policies and strategies;
- Explore how sustainable energy is integrated into other sector policies;
- Dialogue and coordination mechanisms for environmental cross-sector interventions;
- Impact of geothermal drilling on air quality and acoustics
- Deforestation and forest degradation as a result of fuel wood harvesting;
- Risk of soil erosion and impact on biodiversity as a result of deforestation;
- Indoor air pollution associated with fuel wood and charcoal stoves;
- Impact of increased climate variability on sustainable energy supply;
- Impact of rainfall variability on availability of water for hydropower;
- Impact of the extraction of peat on biodiversity and habitats;
- Energy efficiency and conservation;
- Impact of dammed reservoirs on wildlife, such as aquatic ecosystems;
- Macro level impact of various cooking fuel alternatives
- The direct and indirect impacts of sector programme implementation on climate change.
Description of the scope of the environmental baseline to be prepared in the SEA study