Evaluation

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Special Evaluation Study on Environmental Mitigation Measures in Selected ADB-Financed Projects
Completed: 1998

Completed in 1998, this study aims to assess the effectiveness of measures included in selected ADB-financed projects to mitigate adverse environmental impacts. The study examines whether the measures produced the anticipated benefits, and if not, the factors that contributed to the failure.

The purpose is to examine whether ADB is emphasizing the correct expenditure and mitigation measures and what could be done to implement them more effectively. The study pays particular attention to internal or controllable factors, particularly those relating to ADB's internal business processes, and provides some recommendations for operational improvement.

The study focuses on thermal energy generation projects (plus two urban development projects) selected from projects in People's Republic of China, India, Indonesia, and Philippines. These four countries account for about half of all ADB lending in the power sector.

  Summary of Findings

• The Environmental Impact Assessment (EIA) process required and supported by ADB resulted in successful identification, design, and mitigation of major environmental impacts.
• Environmental personnel, management plans, and monitoring programs had variable success in applying Environmental Mitigation Measures (EMM) during operations phases in the case studies.
• Environmental protection needs greater attention in the planning and feasibility study stage.
• Site location, technology, and management expertise are the most important factors affecting the success of EMM.
• Public promotion and awareness campaigns during design, as well as implementation can help realize targeted goals for environmental achievements.
• The urban development projects studied had similar problems/issues with respect to EMM as for the thermal power generation projects.

  Recommendations

• ADB should consider more detailed itemizing and earmarking greater portions of a loan or project financing to implement EMM.
• ADB should develop and implement an EMM evaluation and reporting system for sensitive projects on a project-specific basis, which should become an operational procedure.
• ADB should promote regular (annual) external audits of the large power plants to ensure actual compliance with the regulations.
• The EIA should be done during the feasibility phase prior to finalizing the site and type of technology. It should also include strategic, regional, and cumulative studies, as well as risk assessment and emergency response planning for some projects.
• Adequate attention needs to be given at the planning stage to prepare realistic demand for environmental services and preparing contingency plans for EMM.
• Plant operators need to carefully itemize the budget for EMM and build in penalty schemes for contractors for failure to implement them.
• To be cost-effective in a broader sense, designing of EMM should evaluate the possibility of common wastewater treatment facilities, solid waste management systems, cogeneration plants, etc.
• ADB should support public participation in all aspects of projects, especially during project planning and design stage, including during the development of detailed terms of reference for the EIA.