Roles and Responsibilities in the loan life cycle

Roles and Responsibilities in the loan life cycle

START

Roles and Responsibilities in the loan life cycle

Step 2 - Preparation Identify for the project

• Type of activities
• Infrastructure size
• Location
• Overall footprint
• Impacts and risks
• Mitigations

Step 4 - Execution Ensure that measures included in ESRS and ESMP are implemented and monitored

Step 3 - Approval

• Environmental and Social Review Summary (ESRS)
• Environmental and Social Management Programs (ESMP)

Become contractual requirements

Step 5 - Completion

• Approve Project completion report (PCR)
• Ensure:
• There are no environmental or social liabilities
• Executing Agency continues to apply the ESMP

Step 1 - Pre-identification and Identification Provides the basis for determining the application of ESPS 3 and anticipating potential sources of pollution and their risks

Roles and responsibilities

Roles and Responsibilities in the loan life cycle

Preliminary project information

• Sector
• Location
• Operation activities
• Expected infrastructure
• Environmental and social context

It is the basis for

• Applying ESPS 3
• Anticipating potential sources of pollution
• Identifying risks for the Environmental and Social Review Summary (ESRS)

Reference information to anticipate risks and impacts Key Responsibilities

STEP 1

Close

Pre-identification and Identification

Roles and Responsibilities in the loan life cycle

More detail for

• Type of activities
• Infrastructure size
• Location
• Overall footprint

In this stage, identify and characterize

• Potential sources of pollution
• Opportunities to optimize resources
• Strategies to mitigate and manage impacts/risks

Environmental and social analysis and programs Key Responsibilities

STEP 2

Close

Preparation

Roles and Responsibilities in the loan life cycle

Contract signing

Contractual requirements

• Environmental and Social Review Summary (ESRS)
• ESMP
• Other environmental and social management documents

Board Approval

STEP 3

Close

Approval

Key Responsibilities

• Project / ESG Team: verifies that the contract incorporates the Environmental and Social design, management, and monitoring requirements, as per ESMP and ESRS
• Executing Agency: designates internal environmental and social roles and responsibilities to follow up on these requirements

Roles and Responsibilities in the loan life cycle

Includes

• Project implementation
• Operational monitoring

Ensure that ESMP or ESRS measures for pollution prevention/control and resource efficiency are implemented and monitored

• Effectively
• As per contractual agreements
• According to key performance indicators

Key Responsibilities

STEP 4

Close

Execution

Roles and Responsibilities in the loan life cycle

• Approval of Project Completion Report (PCR)
• Ends IDB Environmental and Social supervision
• Project operated by the Executing Agency or a third party, with no IDB Environmental and Social supervision

Key Responsibilities Before Completion, the IDB team:

• Ensure there are no outstanding socio-environmental liabilities
• Soil or water pollution
• Untreated waste
• Environmental fines
• Others
• Ensure the Executing Agency still applies
• ESMP
• Other management instruments for pending activities

STEP 5

Close

Completion

Roles and Responsibilities in the loan life cycle

IDB project team

• Ensure that the Borrower and Executing Agencies understand potential risks and impacts

• Review Environmental and Social documents to ensure compliance with ESPS 3

Close

Borrower

Roles and responsibilities

• Identify risks and impacts of activities and mitigation

• Monitor these actions

• Assess project potential to affect climate change, quantify GHG emissions

• Identify cost-effective and technically feasible solutions consistent with GIIP to ensure efficient use of resources and pollution control

Consultants

• Support creating and reviewing environmental and social studies

• Advise the IDB and the borrower to ensure that impacts and risks are
• Identified
• Assessed

• Propose adequate mitigation measures

Each team must understand its role and responsibility in identifying and managing the project’s environmental and social risks