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Notice of Publication and Request for Comments
Note: EPA no longer updates this information, but it may be useful as a reference or resource.
[Federal Register: February 6, 1997 (Volume 62, Number 25)]
[Notices]
[Page 5645-5653]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
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INTERNATIONAL DEVELOPMENT COOPERATION AGENCY
Overseas Private Investment Corporation
Notice of Publication and Request for Comments
AGENCY: Overseas Private Investment Corporation, IDCA.
ACTION: Notice of Publication and Request for Comments.
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SUMMARY: The Overseas Private Investment Corporation (OPIC) has
published an ``Environmental Handbook'' which represents the current
environmental policies and procedures in use at the Agency. Section
231(n) of the Foreign Assistance Act of 1961 (Title 22 U.S.C. 2191
(k)(2)), as amended, requires OPIC to: ``Refuse to insure, reinsure,
guarantee, or finance any investment in connection with a project which
the Corporation determines will pose an unreasonable or major
environmental, health, or safety hazard, or will result in the
significant degradation of national parks or similar protected areas.''
The Handbook was published to consolidate a number of sources of
information into a single, easy-to-review and easily accessible
document. This Handbook is also available on OPIC's Internet web site
at www.OPIC.gov. Comments on the Handbook and its content are being
invited for Agency consideration. OPIC intends to consider revising the
Handbook based upon the comments received. OPIC encourages all
interested parties to respond within 120 calendar days of publication
of this Notice. The entire text of the Handbook appears below.
DATES: Comments must be received on or before June 6, 1997.
ADDRESSES: Comments should be submitted to Mr. Harvey Himberg,
Environmental Affairs, Overseas Private Investment Corporation, 1100
New York Ave., NW., Washington, DC 20527 USA.
FOR FURTHER INFORMATION CONTACT: Contact Mr. Himberg by phone at 202/
336-8414, by fax at 202/218-0177 or via Internet e-mail at /S=himberg/
G=harvey@mhs-opic.attmail.com.
TEXT OF HANDBOOK:
OPIC ENVIRONMENTAL HANDBOOK
December 1996
INTRODUCTION: STATEMENT OF PURPOSE AND OBJECTIVES
This Handbook is intended to provide guidance to OPIC's clients,
as well as the interested public, with respect to the environmental
standards, assessment and monitoring procedures that OPIC applies to
prospective and ongoing investment projects. The standards and
procedures described in this Handbook generally reflect existing
practice at OPIC as it has evolved since the enactment in 1985 of
statutory environmental provisions applicable to OPIC. (The
environmental provisions contained in OPIC's statute are reprinted
in Appendix A.) (OPIC is also subject to Executive Order 12114,
``Environmental Effects Abroad of Major Federal Actions.''
Environmental Assessment Procedures for EO 12114 are included in
Appendix A.)
Since 1985, OPIC has been required by statute to assess the
environmental impacts of projects under consideration for political
risk insurance and financing. OPIC's authorizing statute was amended
at that time with the congressional intent of ensuring that ``great
care * * * be paid to assuring the environmental soundness of U.S.
Government supported foreign assistance projects.'' This is
particularly important given OPIC's self-sustaining mandate. OPIC
strongly supports these principles on their own merits.
In addition, it is increasingly evident that responsible and
proactive environmental assessment and management enhance the
competitiveness of U.S. investors, as well as project developers,
suppliers and contractors associated with overseas investment
projects.
Whereas public policy considerations have spurred multilateral
and bilateral financial institutions such as OPIC to take the lead
in addressing environmental issues in project finance and political
risk insurance, private financial institutions both in the U.S. and
overseas also have recently begun to integrate environmental
concerns into their lending and insurance criteria.
Corporations themselves, through such initiatives as the ISO
14000 process, have undertaken to standardize environmental
management, auditing and labeling on an international basis. (ISO is
the International Standards Organization, a voluntary membership
body composed of private sector companies.)
Over the years OPIC has worked with counterpart organizations
providing similar services to investors in the U.S., overseas and on
a multilateral basis as environmental procedures were developed.
Many of the OPIC standards and procedures described in this Handbook
are also applied by organizations such as the International Finance
Corporation (IFC) and the Multilateral Investment Guarantee Agency
(MIGA), both affiliates of the World Bank; the European Bank for
Reconstruction and Development (EBRD); and the U.S. Export-Import
Bank (US Exim). In OPIC's experience, the application of standards
and procedures similar to those used by these organizations has
facilitated co-financing and co-insurance arrangements and made it
simpler for clients to address environmental requirements.
[[Page 5646]]
The Handbook is not designed to be a static document but rather
an evolving process. OPIC welcomes comments from business and public
interest organizations seeking to enhance OPIC's environmental
assessment and management process.
Environmental Assessment (EA)
By statute, OPIC is precluded from assisting any project that it
determines will pose an ``unreasonable or major environmental health
or safety hazard.'' (See Appendix A.)
Environmental assessment (EA) is the tool used by OPIC to make
this determination. The state-of-art of EA is steadily evolving
through experience with actual projects over time. EA is a
continuing activity through the life of a project, not a one-time
exercise. Effectively applied, it is integrated into the design and
operations of a project, rather than undertaken as an ``add-on'' to
satisfy a requirement external to the project. EA consists of
several stages of analysis--descriptive, prospective and
retrospective.
By statute, OPIC is required to provide some degree of EA to
every project considered for insurance or finance in determining
whether to provide support for the project. This requirement extends
to subprojects undertaken by OPIC-supported investment funds and on-
lending facilities. (See the discussion of financial intermediaries,
below.) OPIC cannot provide a final commitment to a project (i.e.,
issue an insurance contract, disburse a loan, or approve a
transaction by a financial intermediary) until its environmental
assessment is complete and a determination is made by OPIC that the
environmental, health and safety impacts of the project are
acceptable.
Different types of EAs are conducted by the applicant depending
on the nature of the project. The actual work may be conducted by
the applicant/sponsor or by a third party, such as an environmental
consultant. On the basis of its considerable experience in reviewing
such materials, OPIC can advise applicants regarding many aspects of
EA preparation.
EAs and other environmental reports should be provided to OPIC
as early as possible in the application process. This enables OPIC
to identify environmental issues that may require additional
attention before the EA can be considered to be complete.
Collaboration between OPIC and other official and private lenders
and insurers in reviewing environmental information is in the
interest of the applicant as it expedites the review process and
avoids delays and needless duplication with the requirements of
other lenders and insurers.
Once the EA is complete, OPIC will make every effort to review
the material within a two to four week time frame. In circumstances
where OPIC confronts a particularly full project pipeline, OPIC may
contract for outside expertise to enable it to complete the review
process in a timely manner.
In all cases, the cost of preparing the original EA is borne by
the applicant, sponsor or foreign enterprise. When OPIC engages
independent consultants to review all or part of the EA materials
submitted by the investor, to undertake an original assessment of
the project and/or to undertake a site visit as part of the
environmental review process, it requires the applicant to reimburse
the associated costs.
OPIC may require one or more of the following documents to
satisfy a project's EA requirements:
Environmental Impact Statement (EIS). By statute and Executive
Order (EO) 12114 (See Appendix A), OPIC is required to prepare, and
to take fully into account, an EIS for any project ``significantly
affecting the environment of the global commons outside the
jurisdiction of any nation (e.g., the oceans or Antarctica).'' Given
the discrete nature of projects assisted by OPIC, it is considered
unlikely that any single project assisted by OPIC would have a
sufficiently large impact on the global commons to warrant an EIS.
However, the cumulative impacts of several large projects could
conceivably have an impact on extraterritorial waters or the
atmosphere sufficient to trigger the requirement.
As prescribed by EO 12114, such an EIS should be concise and no
longer than necessary to permit an informed consideration of the
environmental effects of the proposed project and the reasonable
alternatives. It should include the following sections: (1) Purpose
and need for the proposed project; (2) a sufficient description of
the environment of the global commons affected by the proposed
action; (3) an analysis, in comparative form, of the environmental
consequences on the global commons of the proposed action; and (4)
reasonable alternative means of structuring the project.
In lieu of preparing a new EIS, the Executive Order permits OPIC
to rely on one of the following: A pre-existing EIS for the same
project; a project involving similar environmental issues; a generic
EIS covering a number of similar projects; or an EIS obtained by
other agencies.
Environmental Impact Assessment (EIA). An EIA is a comprehensive
assessment of the diverse impacts of a project on the natural and
human environment. It includes a detailed description of pre-
existing conditions (``baseline assessment''), all project
activities having a potential environmental impact (from pre-
construction through decommissioning and site reclamation), and the
net impacts of the project, taking into account alternative
mitigative measures. It also considers the relationship of the
project to the natural and human environment in the affected area
and the cumulative impacts of those activities. The content and
format for an EIA will vary depending on industry sector, the site
and other project-specific factors. (A generic format for an EIA is
provided in Appendix B.)
Environmental Management and Monitoring Plan (EMMP). An EMMP is
designed to specify in detail the actions--both technical and
managerial--that the applicant or sponsor will undertake in order to
mitigate anticipated adverse impacts of the project on the
environment, health and safety. It also describes the technology and
methodology used to monitor the actual impacts of the project on the
environment and the standards and procedures to be used for
adjusting mitigative measures as necessary to maintain impacts
within an acceptable range. (A generic format for an EMMP is
suggested in Appendix C.) While ISO 14000 Environmental Management
Systems implementation is not a substitute for a project-specific
EMMP, a project sponsor's adherence to the ISO criteria can
facilitate the process of developing an acceptable EMMP.
Major Hazard Assessment (MHA). An MHA is a specialized form of
EA designed to identify and assess the risks of catastrophic events
resulting from the operation of an industrial facility. For projects
requiring an MHA, OPIC requires completion of the MHA, preferably as
part of the EIA process, but no later than the commencement of
project operations. The categories of facilities subject to an MHA
as well as the content and format of an MHA are outlined in the
``World Bank Guidelines for the Identification, Analysis and Control
of Major Hazard Installations in Developing Countries,'' a copy of
which is available from OPIC.
Environmental Audit (EAU). If the investment involves the
acquisition of a pre-existing facility or a site on which industrial
activity previously occurred, the project may also be subject to an
EAU. An EAU is designed to identify pre-existing adverse
environmental, health or safety conditions that could affect future
impacts from the facility or site. (A generic format for an EAU is
suggested in Appendix D.) ISO Environmental Auditing criteria are a
useful adjunct to, although not a substitute for, performance-based
auditing that is required to meet OPIC EAU requirements.
Environmental Remediation Plan (ENR). The project may involve
the remediation of environmentally adverse conditions at a site. In
this case the applicant will be required to provide OPIC with an
ENR, similar in format to an EMMP, and designed to address the
issues raised in the audit.
An EMMP, EAU or ENR may be included as part of an EIA. Other
documents prepared to satisfy the requirements of other lenders may
be submitted to OPIC so long as the documentation addresses the
substantive issues needed for OPIC to complete its review of the
project.
Screening
The type of EA required for a particular project, including the
timing and the level of effort involved, depends upon the nature of
the project. Therefore, the first step in OPIC's EA is screening, in
which OPIC's Environmental Unit assigns each project to one of the
following categories:
Category A: Projects in this category can be expected to have
potentially significant, diverse and irreversible environmental
impacts. Such projects can be readily identified on the basis of
industry sector or site sensitivity. They require a full-scale EIA,
as well as an EMMP. A fairly comprehensive
[[Page 5647]]
list of industries and sites within this category is provided in
Appendix E. Category B: Projects in this category may result in
specific environmental impacts and require adherence to certain
predetermined performance standards, guidelines, or design criteria
to avoid or mitigate impacts. Due to their nature, size or location,
such projects can be readily assessed in terms of their
environmental impacts and mitigation measures can be readily
identified. Projects not included in Categories A, C, or D (as
defined above and below) can be expected to belong to Category B.
Examples of such project categories include: Agriculture, electrical
distribution, electronics, food processing, light manufacturing,
telecommunications, textiles and tourism. Information required from
the applicant typically includes the following: Site description;
processes involved; materials used and stored on site; air, liquid,
and solid wastes generated in relation to applicable standards; and
occupational health and safety measures.
Category C: This category includes projects that are normally
exempt from all environmental assessment, analysis or review because
they do not normally result in any environmental impact. Examples of
such projects include branch banking and computer software
development.
Category D: This category includes financial intermediaries
(FIs) that make investments in or provide financing (loans, leases,
etc.) to multiple projects or enterprises (``subprojects'') engaged
in activities within categories A and B. OPIC screens these
subprojects to determine the type of environmental review required.
Also taken into account is the nature and size of the FI's
involvement in the subproject. Expedited reviews are conducted for
Category B subprojects involving less than $5.0 million in
investment, subject to further review if the FI proceeds with
additional investments in the same subproject.
Environmental Standards
All projects must comply with host country environmental
regulations. In addition, for most categories of activities, OPIC
requires that projects meet World Bank environmental, health and
safety guidelines. Therefore, whenever possible, applicants should
provide OPIC with summaries or copies of applicable host country
regulations as part of their EIA (for Category A projects) or as
information provided in support of their application (for Category B
projects). Government permits and certifications of compliance are
necessary in this regard, although not always sufficient to
establish compliance.
World Bank guidelines were most recently officially issued in
1988 and many of the guidelines themselves date from the early
1980s. For that reason, OPIC has opted to use the draft guidelines
prepared by the World Bank in May 1994 for the majority of
industrial categories. (Use of the 1994 draft guidelines is
consistent with the current practice of the International Finance
Corporation pending the issuance of revised World Bank guidelines.)
(For certain industries not included in the 1994 draft, OPIC may
consider compliance with the 1988 guidelines acceptable.) As the
Bank continues to update its guidelines, OPIC will substitute more
current versions of particular guidelines on a case-by-case basis by
industry. (A comprehensive list of official and draft World Bank and
U.S. Exim guidelines for industry sectors as well as ecologically
sensitive sites is contained in Appendix F. All are available from
OPIC on request).
For certain environmentally sensitive industries or
circumstances, OPIC may require a project to meet a more restrictive
standard than the World Bank guidelines, including, in some cases,
emissions, effluent, ambient air and water quality limitations set
by the U.S. Environmental Protection Agency, the World Health
Organization or a similar authority.
OPIC does not attempt to prescribe to its potential clients the
choice of technologies or processes they must use to meet the
applicable guidelines. However, standards of best practice developed
by governments, industry and non-governmental organizations can be
useful in providing guidance to OPIC and its clients in assessing
alternatives and their feasibility. For this purpose OPIC is
developing, in consultation with experts, international best
practice guidelines for three sectors of particular importance to
OPIC's mandate with respect to environmental impact: power
generation; metals mining; and forestry (both tropical and
temperate/boreal). Copies of these best practice guidelines will be
available from OPIC on request.
Eligibility Determinations
The primary purpose of OPIC's environmental review is to
determine the eligibility of the project based on OPIC's statutory
obligation to decline support for projects posing ``unreasonable or
major environmental, health or safety hazards''. OPIC interprets
``health or safety'' to apply both to project employees and to the
affected public living or working in the vicinity of the project.
In addition, OPIC is also required by statute to operate its
programs in a manner consistent with sections 117, 118 and 119 of
the Foreign Assistance Act (FAA). These provisions pertain to
environmental assessment, and the protection of tropical forests and
endangered species, respectively.
Grounds for Declining Assistance to Projects. There are several
circumstances under which OPIC will decline support for a project on
environmental grounds:
The applicant fails to provide OPIC with an EIA for a
Category A project or with adequate information about a Category B
project to conduct a review sufficient to determine project
eligibility on environmental grounds.
The project will, in OPIC's determination, result in
--Significant degradation of a national park, similar protected area
or tropical rainforest;
--The destruction of or significant degradation in the habitat of an
endangered species; and/or
--Other ``unreasonable or major environmental, health or safety
hazards.''
OPIC provides applicants with the opportunity to demonstrate
that the proposed project does not pose an ``unreasonable or major
environmental or safety hazard'' and is otherwise consistent with
the letter and intent of the FAA provisions. However, at one time or
another, OPIC has declined to support projects on one or more of the
above grounds.
Conditionality. In many cases, determinations of eligibility
rely on critical representations made by the client with respect to
baseline environmental conditions, mitigative measures and net
impacts of proposed projects. In addition to the EMMP or ENR
submitted by the applicant, OPIC may require the application of
additional mitigative measures in order to ensure that a project
will not pose an unreasonable or major environmental, health or
safety hazard. These critical representations and those undertakings
agreed to by the applicant or sponsor may be included in project
documentation as preconditions to contract execution, conditions of
disbursement and/or ongoing covenants, depending on the type of
agreement entered into between OPIC and the applicant. Where OPIC
insures an institutional lender, contract conditions are
incorporated into the loan documentation.
Environmental conditions and covenants are developed in close
consultation with the client to minimize the cost to the project and
to ensure that they are consistent with the host country's legal
framework, objectively measurable and verifiable, and allow for
sufficient flexibility to address issues if circumstances change.
Monitoring and Compliance
OPIC's environmental assessment process is an ongoing one and
continues through the full term of OPIC's relationship with the
project sponsor.
Monitoring. OPIC reserves the right to monitor projects'
compliance with environmental representations and undertakings
throughout the term of its insurance or financing. Monitoring may
take the form of self-reporting by the investor of summaries and, in
specified cases, raw data obtained from monitoring a project's
environmental performance (emissions, effluents or other waste
discharges) as well as its environmental impacts (e.g., on ambient
conditions and biological resources). Monitoring may also take the
form of third party evaluation, including compliance information
developed by host government authorities, co-lenders/co-insurers and
independent auditors.
OPIC routinely conducts on-site monitoring of projects, using
OPIC staff and/or consultants, for environmental as well as U.S.
economic and host country development effects. OPIC endeavors to
monitor all Category A projects on-site at least once during the
first three years of project commitment, and more frequently
depending on the environmental sensitivity of the project. Category
B and D projects are also subject to monitoring on a random and
selective basis.
Non-compliance, Remediation and Termination. Material non-
compliance with environmental representations and
[[Page 5648]]
undertakings may constitute an event of default under the terms of
OPIC insurance contracts and loan agreements. Depending on the
severity and reversibility of the environmental impact and the
investor's responsibility and due diligence in attempting to prevent
the default and in curing the problem, OPIC may treat the default as
curable or incurable. In the case of a curable default, OPIC works
cooperatively with the investor to develop a feasible timetable for
remediation. In the case of an incurable default, OPIC may require
contract termination in the case of insurance, or acceleration of
repayment or other available lenders' remedies, in the case of a
loan. If an equity investment on the part of an FI is involved,
divestiture by the FI may be required. In all cases, OPIC seeks to
work cooperatively with investors and lenders to arrive at an
equitable resolution of the situation, subject, of course, to the
requirements of other lenders and insurers.
Public Consultation and Disclosure
The environmental assessment process has become an increasingly
public and transparent process among environmental regulatory
agencies in the United States and in some, although not all, foreign
countries. Likewise, multilateral development agencies that provide
assistance to governments and other public sector clients have also
made their activities more transparent to the public in both donor
and host countries.
OPIC recognizes the added value that interested and well-
informed members of the public can bring to the environmental
assessment process undertaken by its clients as well as by OPIC
itself. Grass roots as well as international non-governmental
organizations (NGOs) often have access to information and
perceptions about potential environmental impacts and resulting
social, economic and cultural impacts that need to be carefully
considered as early as possible in the assessment process.
At the same time, the plans and proposals of private sector
investors are often business confidential, and, in such cases, must
be strictly protected from disclosure. While OPIC is subject to the
disclosure requirements of the Freedom of Information Act, those
requirements contain an exemption for business confidential
information that is protected from disclosure under the Trade
Secrets Act.
In submitting project-specific information to OPIC, including
Environmental Impact Assessments, audits, management and remediation
plans as well as monitoring reports, applicants must specify which
information has been or will be made public in any format, including
in the host country. Because OPIC's goal is to provide the public
with a level of comfort about its environmental process, applicants
are strongly encouraged to submit environmental information in a
form that can be shared with the public without compromising
business confidentiality. Any information that is identified as a
public document will be treated as such by OPIC in a response to a
specific request for such information. Business confidential
information will be accorded confidential treatment to the full
extent permitted by law.
When OPIC receives an application for insurance or financing for
an environmentally sensitive project or subproject (coinciding with
all projects within Category A, as defined above) OPIC will list the
nature of the project and its location on OPIC's Home Page on the
World Wide Web (http://www.opic.gov). No business confidential
information will be disclosed. This list will be updated monthly,
and any comments received will be considered in OPIC's processing of
the application. Additional information about projects may be
provided to OPIC at any time throughout the term of the project.
Questions about this Environmental Handbook should be addressed
to the Director, Environmental Affairs, Overseas Private Investment
Corporation, 1100 New York Avenue, NW, Washington, DC 20527; Phone
(202) 336-8614; Fax (202) 218-0177.
Appendix A--OPIC Statute (Environmental Provisions)
All references are to the Foreign Assistance Act of 1961 (FAA),
as amended, most recently by the Jobs Through Exports Act of 1992.
Section 231 * * *. The Corporation, in determining whether to
provide insurance, financing or reinsurance for a project, shall
especially--
(3) ensure that the project is consistent with the provisions of
section 117, (as so redesignated by the Special Foreign Assistance
Act of 1986), section 118, and section 119 of this Act relating to
the environment and natural resources of, and tropical forests and
endangered species in, developing countries, and consistent with the
intent of regulations issued pursuant to sections 118 and 119 of
this Act.
In carrying out its purpose, the Corporation, utilizing broad
criteria, shall undertake--
(n) to refuse to ensure, reinsure, guarantee or finance any
investment in connection with a project which the Corporation
determines will pose a major or unreasonable environmental, health
or safety hazard, or will result in the significant degradation of
national parks or similar protected areas.
Section 237. General Provisions Relating to Insurance, Guaranty and
Financing Programs
(m)(1) Before finally issuing insurance, reinsurance,
guarantees, or financing under this title for any environmentally
sensitive investment in connection with a project in a country, the
Corporation shall notify appropriate government officials of that
country of--
(A) All guidelines and other standards adopted by the
International Bank for Reconstruction and Development and any other
international organization relating to the public health and safety
or the environment which are applicable to the project; and
(B) To the maximum extent practicable, any restriction under any
law of the United States relating to public health or safety or the
environment that would apply to the project if the project were
undertaken in the United States.
The notification under the preceding sentence shall include a
summary of the guidelines, standards and restrictions referred to in
subparagraphs (A) and (B), and may include any environmental impact
statement, assessment, review or study prepared with respect to the
investment pursuant to section 239(g).
Section 239. General Provisions and Powers
(g) The requirements of section 117(c) of this Act relating to
environmental impact statements and environmental assessments shall
apply to any investment which the Corporation insures, reinsures,
guarantees, or finances under this title in connection with a
project in a country.
Environmental Assessment Procedures for Executive Order 12114
On January 4, 1979 the President issued Executive Order 12114
(44 FR 1957) entitled ``Environmental Effects Abroad of Major
Federal Actions''. The Executive Order requires federal agencies
taking action encompassed by the Order, and not exempted from it, to
effectuate procedures to implement the Order. The Overseas Private
Investment Corporation (OPIC) is implementing the Executive Order by
the adoption of the following procedures to take effect on September
4, 1979.
Section 1. Purpose
As required by Executive Order 12114, issued January 4, 1979,
which is incorporated herein by reference, the following procedures
shall be used by OPIC to ensure that all significant environmental
effects of its actions outside the United States are considered by
OPIC in its review of proposed insurance and finance projects. These
procedures shall supplement OPIC's existing environmental procedures
and guidelines required by the Foreign Assistance Act as amended
(the ``Act''), as set forth in OPIC Board of Directors Resolution
(74) 16 * * * and the ``OPIC Environmental Handbook''.
Section 2. Definition
A. Application. The term ``application'' means a formal request
to OPIC in the manner specified by OPIC for assistance under an OPIC
program from an eligible private party interested in investing in a
project in a foreign nation.
B. Environment. The term ``environment'' means the natural and
physical environment and excludes social, economic, and other
environments.
C. Global Commons. The term ``global commons'' means areas
outside the exercise of any national jurisdiction.
D. Host Country. The term ``host country'' means the foreign
country in which a project for which OPIC assistance is sought is or
will be located.
E. Major Action. The term ``major action'' means a contractual
commitment by OPIC to provide assistance under an OPIC program
involving at least $1 million of insured investment, loan guaranties
or direct loans, if the applicant therefor has or will have
sufficient control over the design and/or operation of the project
to mitigate environmental concerns raised by OPIC.
F. OPIC Programs. The term ``OPIC programs'' includes OPIC's
insurance, direct loan and loan guaranty programs as authorized by
the Act.
[[Page 5649]]
G. Significant Effects. With respect to effects on the
environment outside the United States, a proposed action has a
significant effect on the environment if it does significant harm to
the environment even though on balance the action is believed to
result in beneficial effects on the environment.
Section 3. Applicability of Procedures
A. Scope. Except as provided in Subsections B, C, and D below,
these procedures shall apply with respect to OPIC's review of each
new application for assistance under an OPIC program, whether for
new projects or expansions of existing projects, if a favorable
decision on such application will result in a major action by OPIC.
B. Exemptions. If upon the initial review of an application the
OPIC insurance or finance officer making such review determines that
the project for which OPIC assistance is sought has no significant
effects upon the environment outside the United States, these
procedures shall not apply. If upon further review of the
application, and prior to taking action, it is determined that the
project may have a significant effect upon the environment, this
exemption shall no longer apply. Also exempt from these procedures
are actions falling within the categories listed in Section 2-5(ii)
through (vii) of the Executive Order, as limited by Section 2-5(d).
A concise administrative record will be prepared to document these
determinations.
C. Categorical Exclusions. These procedures shall not apply to
the review of an application for any project falling within the
scope of any category of projects which are determined to involve no
significant effects on the environment. OPIC's Investment Committee
shall have the authority to establish such categorical exclusions.
D. Special Exemptions. These procedures shall not apply to the
review of any application for which the General Counsel determines
that an exemption is necessary as a result of emergency
circumstances, situations involving exceptional foreign policy or
national security sensitivity or other special circumstances (except
as limited by Section 2-5(d) of the Executive Order). In utilizing
any such special exemption, OPIC, through its designated
Environmental Officer, shall consult as soon as feasible with the
Department of State and the Council on Environmental Quality.
Section 4. Initial Determinations
A. With respect to any application for OPIC assistance falling
within the scope of Section 3(A) above, the OPIC officer reviewing
such application shall make the following determinations which shall
be documented by a concise administrative record:
1. Whether the proposed project is likely to have a significant
effect on the environment of the global commons;
2. Whether the proposed project is likely to have a significant
effect on the environment of a foreign country other than the host
country; and
3. Whether the proposed project is likely to have a significant
effect on the environment of a foreign country because it would
provide to that country.
(a) A product, or physical project producing a principal product
or an emission or effluent, which is prohibited or strictly
regulated by Federal law in the United States because its toxic
effects on the environment create a serious public health risk, such
as asbestos, vinyl chloride, acrylonitrile, isocyanates,
polychlorinated biphenyls, mercury, beryllium, arsenic, cadmium, and
benzene; or
(b) A physical project which in the United States is prohibited
or strictly regulated by Federal law to protect the environment
against radioactive substances.
4. Whether the proposed project is likely to have a significant
effect on natural or ecological resources of global importance
hereafter designated for protection by the President or, in the case
of such a resource protected by international agreement binding on
the United States, by the Secretary of State.
B. The determination required in Subsection A above shall be
based upon the information contained in the application, information
reasonably available to OPIC and such additional information from
the applicant as deemed necessary by the reviewing officer.
C. In the event that the reviewing officer makes a positive
determination with respect to any of the categories specified in
Subsection A above (i.e. that a significant effect is likely to
result), and such determination is not reversed upon review by a
supervisory officer or by the Investment Committee, the finance or
insurance department, as the case may be, in consultation with
OPIC's Environmental Officer, shall take the following actions, as
appropriate, prior to acting on the application:
1. If the harmful effect is of the type described in Subsection
A(1) above, an environmental impact statement shall be obtained in
the manner specified in Section 5 below. Such an environmental
impact statement shall consider only the effects described in
Subsection A(1), regardless of whether the project would result in
other kinds of environmental effects.
2. If the harmful effect is of the type described in Subsection
A(2), A(3) or A(4) above, an environmental study or an environmental
review shall be prepared in the manner specified in Section 6 below.
Section 5. Environmental Impact Statement
A. If a department within OPIC is required by Section 4(C)(1) to
cause the preparation of an environmental impact statement for a
particular project, it shall do so in accordance with Subsection B
below. If an environmental impact statement for the proposed
project, a project involving similar environmental issues or a
generic statement covering a host of similar projects already
exists, no new environmental impact statement shall be required.
When one or more other agencies are also involved in a particular
project requiring an environmental impact statement OPIC may rely
upon an environmental impact statement obtained by one or more of
the other agencies.
B. Environmental impact statements shall be concise and no
longer than necessary to permit an informed consideration of the
environmental effects of the proposed project and the reasonable
alternatives. The statement shall include a section on the
consideration of the purpose of and need for the proposed project; a
section that provides a succinct description of the environment of
the global commons affected by the proposed action; and a section
that analyzes, in comparative form, the environmental consequences
on the global commons of the proposed action and of reasonable
alternative means of structuring the project.
Section 6. Environmental Studies and Reviews
A. If a department is required under Section 4(C)(2) to produce
an environmental study or review, it shall, in consultation with the
Environmental Officer, determine whether an environmental study as
described in Subsection B below which deals with the environmental
aspects of the proposed project is available or will be undertaken
elsewhere. If no relevant environmental study is or will be
available, the OPIC department, in consultation with the
Environmental Officer, shall undertake the preparation of an
environmental review as described in Subsection C below with, as
appropriate, the assistance of the applicant and of other federal
agencies having jurisdiction by law or special expertise. If an
environmental review for the proposed project or a project involving
similar environmental issues or a generic review covering a class of
similar projects already exists, no new environmental review shall
be required hereunder. When one or more agencies are involved with
OPIC on a particular project, a lead agency may be designated to
prepare the environmental review.
B. An environmental study shall consist of a bilateral or
multilateral study by the United States and one or more foreign
nations or by an international body or organization in which the
United States is a member or participant.
C. An environmental review shall consist of a concise analysis
of important environmental issues relating to a proposed project,
including identification of such issues and of the significant
effects to the environment. The department involved in the
preparation of an environmental review shall consider the following
factors in deciding the scope, substance, and timing of review and
the availability of the review to other agencies:
1. The need to avoid infringement or the appearance of
infringement on the sovereign responsibilities and internal affairs
of another government;
2. The availability of meaningful information on the environment
of a foreign nation;
3. The need to protect confidential business information and
trade secrets of the applicant;
4. The desirability of acting promptly upon applications under
OPIC programs;
5. The desirability of the project in terms of its export
promotion and developmental effects;
[[Page 5650]]
6. OPIC's ability to influence the design and/or implementation
of the proposed project; and
7. The need to protect sensitive foreign affairs information and
information received from another government with the understanding
that it will be protected from disclosure.
Section 7. Decision
The required environmental documents developed in accordance
with these Procedures shall accompany the application through the
review process to enable officers responsible for approving an
application and, if necessary, the Board of Directors, to be
informed and to take account of the environmental considerations
covered by such documents.
Section 8. Availability
Subject to the consideration of Section 6(C), environmental
documents developed under these procedures shall be available to the
Department of State, Council on Environmental Quality and other
federal agencies and shall be included in the public information
files for the pertinent applications. Foreign governments affected
thereby may also be informed of such documents after coordinating
with the Department of State regarding such communication with the
foreign government.
Effective Date. These procedures become effective on September
4, 1979.
Dated: August 27, 1979, J. Bryce Llewellyn, President.
Appendix B--Recommended Content and Format for Environmental Impact
Assessment (Category A Projects)
I. Executive Summary
A. Concise project description
B. Identification of project sponsors, operators and contractors
C. Baseline environmental conditions
D. Applicable environmental standards
E. Proposed mitigation measures
F. Net environmental impacts
II. Policy, Legal and Administrative Framework
A. Applicable host country environmental and occupational safety
and health laws and regulations
B. Relevant international agreements
C. Requirements of potential investors, lenders and insurers
III. Baseline Conditions in Area Potentially Affected by Project
(``Project Area'')
A. Designation of project area perimeters
B. Physical geography (climate, geology, topography)
C. Natural events history (earthquakes, floods, fires, storms,
volcanic eruptions, etc.)
D. Biological environment
1. Proximity to national parks and other protected areas
2. Identification of unique or sensitive natural habitats of
internationally or locally recognized rare, threatened or endangered
species
3. Renewable and non-renewable natural resources
E. Human environment
1. Distribution of residential and occupational population in
project area
2. Description of previous, current and planned land use
activities in or near project area
3. Habitation or use of project area by indigenous peoples
F. Environmental quality of project area
1. Ambient air conditions (including seasonal variations)
(a) Sulfur dioxide
(b) Particulates
(c) Nitrogen oxides
(d) Carbon monoxides
(e) Airborne toxics
2. Water supply, quality and end use (human consumption,
agriculture, plant and animal habitat)
(a) Marine waters, including estuaries
(b) Surface waters (rivers, streams, lakes)
(c) Groundwater
3. Noise levels
4. Soil conditions, including contamination from previous or
current activities
G. Archeological, historical or cultural resources
IV. Potential (Unmitigated) Environmental, Health and Safety Impacts
A. Sources and volumes of untreated airborne, liquid, and solid
waste and potential impacts of unmitigated discharge on the
environment
B. Potential impacts on natural and biological resources
C. Potential human impacts:
1. Positive: Employment, services, economic opportunities
2. Negative: Resettlement and economic displacement
D. Potential occupational health and safety hazards
E. Potential for major safety and health hazards beyond the
workplace
V. Proposed Environmental Prevention and Mitigation Measures
(including a thorough discussion of alternatives and justifications
for measures selected)
A. Waste minimization measures
B. Waste treatment and disposal measures
C. Natural resource management (e.g. sustainable management of
biological resources and protection of endangered species and their
habitats)
D. Mitigation of human impacts: compensation, training, etc.
E. Occupational safety and health measures
F. Major hazard prevention and emergency response
VI. Projected Net Environmental Impacts (post-mitigation)
A. Physical impacts (e.g., topography, ground and surface water
supply, soil conservation)
B. Biological impacts (flora, fauna and related habitat with
particular attention to threatened and endangered species; natural
resources, e.g. primary forests, coral reefs, mangroves, etc.)
C. Net discharges of airborne, liquid and solid wastes and
resulting ambient impacts as compared to applicable host country,
World Bank and other relevant regulatory standards and guidelines
D. Net exposures by workers to safety and health hazards
E. Net potential for major hazards
F. Consistency with applicable international agreements
VII. Appendices
A. Permits issued and pending from environmental authorities
B. Author information
1. Names, affiliations and qualifications of project team
2. Relationship of authors to project sponsors
C. Record of meetings held as part of EIA, including public
hearings and consultations with government and non-governmental
organizations
D. Reference bibliography
E. Technical data not included in text
Appendix C--Recommended Content and Format for Environmental Management
and Monitoring Plan
I. Applicable Regulatory Standards and Guidelines
A. Host country laws and regulations
B. Sponsor, investor, lender and insurance requirements
C. International agreements
II. Environmental Management Measures
A. Potential impacts and corresponding preventive and mitigative
measures
B. Equipment specifications for preventive and mitigative
measures
C. Operational and maintenance procedures
III. Organizational Responsibilities and Management Issues
A. Operations
B. Supervision
C. Internal enforcement
D. Monitoring
E. Remedial actions
IV. Training Requirements
V. Monitoring and Reporting Procedures
A. Parameters to be monitored
1. airborne emissions and corresponding ambient air impacts
2. liquid effluents and corresponding ambient impacts on
receiving waters
3. Physical impacts
4. Natural resource and biological impacts
5. Human impacts
6. Workplace conditions
(a) Accident frequency and severity
(b) Worker exposures to hazardous substances
7. Impacts of dedicated offsite infrastructure and facilities
B. Frequency of monitoring
C. Monitoring techniques and procedures
1. Equipment and instrumentation
2. Quality assurance/quality control (QA/QC) procedures
3. Personnel and training requirements
D. Reporting procedures
1. Internal
2. External (e.g. to local authorities)
Appendix D--Recommended Content and Format For Environmental Audit
I. Executive Summary
A. Environmental, safety and health areas of concern
B. Recommended mitigation measures/enhancement opportunities:
priorities
C. Implementation schedule
II. Project Description
A. Location
[[Page 5651]]
B. Past operations history
C. Current operations
III. Applicable Regulations and Guidelines
IV. Audit Procedure (protocol)
A. Historical research
B. Records review
C. Interviews
D. Site inspections
E. Sampling and analysis (quality assurance and control)
procedures
V. Review of Environmental Management
A. Environmental management structure
B. Emergency, security and safety plans
C. Company-community interaction program
D. Handling of complaints and media coverage
VI. Environmental Impacts
A. Air emissions
B. Liquid effluents
C. Solid (non-hazardous) waste treatment
D. Hazardous materials and management
E. Noise and vibration
F. Groundwater and soil contamination
VII. Occupational Safety and Health
A. Summary of accident reporting, recording and investigation
B. Health and safety management
C. Site safety procedures
D. Medical monitoring program
E. Air quality
F. Noise level exposure
G. Chemical/material handling
H. Temperature exposure
I. Personal protective equipment
J. Emergency response capability
K. Fire protection
L. Training programs
VIII. Conclusions
IX. Mitigation Recommendations
A. Identify appropriate measures
B. Priorities
C. Implementation schedule
X. Environmental Enhancement Opportunities
A. Energy and energy conservation
B. Waste minimization
C. Cleaner technology initiatives
D. Training programs
XI. Annexes
A. Names of those responsible for preparing audit
B. Written material references used
C. Records of consultations
D. Other data
Audit checklists for specific industry sectors are available
from OPIC.
Appendix E-- Category A: Projects Requiring Environmental Impact
Assessment
I. Industrial Categories
A. Large-scale industrial plants
B. Industrial estates
C. Crude oil refineries
D. Large thermal power projects (200 megawatts or more)
E. Major installations for initial smelting of cast iron and
steel and production of non-ferrous metals
F. Chemicals
1. Manufacture and transportation of pesticides
2. Manufacture and transportation of hazardous or toxic
chemicals or other materials
G. All projects which pose potential serious occupational or
health risks
H. Transportation infrastructure
1. Roadways
2. Railroads
3. Airports (runway length of 2,100 meters or more)
4. Large port and harbor developments
5. Inland waterways and ports that permit passage of vessels of
over 1,350 tons
I. Major oil and gas developments
J. Oil and gas pipelines
K. Disposal of toxic or dangerous wastes
1. Incineration
2. Chemical treatment
L. Landfills
M. Large dams and reservoirs
N. Pulp and paper manufacturing
O. Mining
P. Offshore hydrocarbon production
Q. Major storage of petroleum, petrochemical and chemical
products
R. Forestry/large-scale logging
S. Large-scale wastewater treatment
T. Domestic solid waste processing facilities
U. Large-scale tourism development
V. Large-scale power transmission
W. Large-scale reclamation
X. Large-scale agriculture involving the intensification or
development of previously undisturbed land
Y. All projects with potentially major impacts on people or
serious socioeconomic concerns
II. Projects in, or Sufficiently Near Sensitive Locations of
National or Regional Importance, to Have Perceptible Environmental
Effects on:
A. National parks
B. Wetlands
C. Areas of archeological significance
D. Areas prone to erosion and/or desertification
E. Areas of importance to ethnic groups/indigenous peoples
F. Natural forests
G. Protected wildlands
H. Nationally designated refuges
I. Coral reefs
J. Mangrove swamps
K. Nationally designated seashore areas
L. Endangered species habitat
M. Properties on the World Heritage List
Appendix F--Index of World Bank and U.S. Export-Import Bank
Environmental, Health and Safety Guidelines
I. Guidelines: Impacts
A. Air quality (Exim, WB 94, WB pending)
1. Sulfur dioxide
(a) Ambient levels (WB 88)
(b) Emissions standards (WB 88)
(c) Sampling and analysis (WB 88)
(d) Sulfur oxides (WB 95)
2. Airborne particulates (WB 95)
(a) Dust emissions (WB 88)
(b) Electrostatic precipitators (WB 88)
3. Nitrogen oxides (WB 95)
(a) Emissions (WB 88)
(b) Sampling and analysis (WB 88)
4. Transboundary pollution (WB 91)
(a) Acid rain (WB pending)
5. Airshed modeling (WB pending)
6. Emissions monitoring (WB pending)
7. Elimination of ozone-depleting substances (WB 3/96)
B. Water use and quality (Exim)
1. Irrigation and drainage (WB 88*, 91)
2. Water supply (WB 91)
C. Wastewater treatment (WB pending)
1. Effluents, disposal of industrial wastes (WB 88)
2. Wastewater collection, treatment, reuse and disposal (WB 91)
(a) Reuse (WB 94)
3. Liquid effluents: land disposal and treatment (WB 88)
4. Sludge treatment (WB pending)
D. Solid waste collection and disposal
E. Management of hazardous and toxic materials and waste (Exim,
WB pending)
F. Occupational health
1. General guidelines (WB 88)
2. Safety (WB 88)
G. Sludge treatment (WB pending)
H. Site planning and management (WB 91, WB pending)
I. Hazardous materials management (WB 91)
1. In small and medium scale industries (WB 85)
2. Polychlorinated biphenyls (PCBs) (WB 94)
3. Asbestos
(a) Sampling and analysis of airborne asbestos (WB 88)
(a) Use in manufacturing industries (WB 88)
J. Natural hazards (Exim, WB 91)
1. Earthquake protection (WB 88, 93)
K. Major industrial hazards (WB 85, 91)
L. Socioeconomic and sociocultural effects (Exim)
1. Core issues (WB 91)
2. Induced development (WB 91)
3. Ecologically sensitive areas (WB 91)
4. Indigenous peoples (WB 91)
5. Cultural property (WB 91)
6. Cultural heritage in environmental assessment (WB 9/94)
M. Resettlement (WB 91, 94)
N. Wildland management (WB 91, 94)
O. Wetlands (WB 91)
P. Tropical forests (WB 91)
Q. Arid and semi-arid lands (WB 91)
R. Coastal zone management (WB 91)
S. Land and water resource management (WB 91)
T. Noise (Exim, WB 88)
U. International treaties and agreements (WB 91)
V. International waterways (WB 91)
W. Biological diversity (WB 91)
X. Secondary environmental effects (WB 88)
Y. Privatization (WB 4/94)
II. Guidelines: Industries
A. General industry and energy (Exim, WB 94)
1. Small and medium scale industries (WB 91)
B. Heavy machinery (WB pending)
C. Cleaner production (WB pending)
D. Rehabilitation of old plants (WB pending)
E. Aluminum (WB 88, 88, WB pending)
F. Iron and steel (Exim, WB 88, 91, 94, 95)
1. General considerations (WB 88)
2. Blast furnaces (WB 88)
3. Coke ovens (WB 88, 88)
4. Ore preparation, sintering and pelletizing (WB 88)
[[Page 5652]]
5. Rolling and finishing operations (WB 88)
6. Steel making process (WB 88, 88)
7. Foundries (WB pending)
(a) Iron and steel (WB 88)
(b) Non-ferrous (WB 88)
(c) Mini-steel mills (WB 95)
G. Mining and milling (Exim, WB 91)
1. Strip/surface: sediment and erosion control, land reclamation
(WB 88)
2. Open pit (WB 88, 94)
3. Underground (WB 88, 94)
4. Base metal and iron ore (WB 95)
5. Non-ferrous (WB 88, 91)
6. Coal mining (WB 88, 88, 95)
7. Asbestos mining and milling (WB 88)
H. Mineral processing
1. Copper and nickel (WB 88, 94, WB pending)
2. Lead and zinc (WB 88, 88 (lead))
3. Silver, tungsten, columbium and tantalum (WB 88)
4. Metal fabrication (WB pending)
5. Sulfuric acid plants (WB 88)
I. Oil and gas development (Exim, WB pending)
1. Onshore (WB 94)
2. Offshore (WB 88)
J. Pipelines: Oil and gas (WB 91)
1. Oil pipelines (WB 88)
2. Oil and gas pipelines onshore (WB 91)
3. Oil and gas pipelines offshore(WB 91)
K. Geothermal energy (WB 88, WB pending)
L. Hydroelectric projects (WB 91)
M. Power plants: General (Exim)
1. Thermoelectric projects: general (WB 88, 91)
2. Rehabilitation (WB pending)
3. Emissions: General (WB 94)
4. Thermal (WB 94, 95)
5. Gas turbine (Exim 94)
6. Engine driven (WB 94)
7. Small scale boilers (WB pending)
N. Electric power transmission and distribution (WB 91, 94)
O. Battery manufacturing (WB 88)
P. Forestry
1. Natural forest management (WB 91)
2. Logging (Exim, WB 94)
Q. Plantations/reforestation (WB 91, 94)
R. Palm oil industry (WB 88)
S. Sawmills (WB 88, 94)
T. Wood products industries (WB 94)
1. Plywood (WB 88, 88) and furniture (WB pending)
2. Wood preserving (WB pending)
U. Pulp and paper (Exim, WB 88, 88, 91, 94, WB pending)
V. Petroleum refineries (Exim, WB 88, 91, 94, 95)
W. Rubber (WB 88) and plastics (WB pending)
X. Chemicals and petrochemicals (WB 91)
1. Organic chemicals (WB pending)
2. Inorganic chemicals (WB pending)
3. Nitric acid plants (WB 88)
4. Petrochemical facilities (Exim, WB pending)
5. Polyvinyl chloride processing (WB 88)
Y. Ethanol production (WB 88)
Z. Printing (WB pending)
AA. Pharmaceuticals (WB pending)
BB. Cement (WB 88, 88, 91, 94, 95)
CC. Chlor-alkali (WB 88, 95)
DD. Coke manufacturing (WB 95)
EE. Fertilizer (WB 91, 94)
1. Fertilizer manufacturing wastes (WB 88)
2. Mixed fertilizer (WB 95)
3. Nitrogenous fertilizer (WB 95)
4. Phosphate fertilizer (WB 95)
FF. Pesticides
1. Pesticides manufacturing (WB 88, WB pending)
2. Pesticides formulation (WB pending)
3. Packaging and labeling (WB 88)
4. Transportation and distribution (WB 88)
5. Handling and application (WB 88, 88, 91, 94)
6. Rodenticides (WB 88, 88)
GG. Fishing and shipbuilding (WB 88, 91)
HH. Watershed development (WB 91)
II. Dams and reservoirs (WB 91)
JJ. Flood protection (WB 91)
KK. Agriculture
1. Production management (WB 91)
2. Integrated pest management (WB 91)
LL. Livestock and rangeland management (WB 91)
MM. Food and beverage processing (WB 91, 94)
1. Agroindustry (WB 91)
2. Dairy (WB 88, 88, 94, 95)
3. Fruit and vegetable processing (WB 88, 88, 95)
4. Vegetable oils (WB pending)
5. Tea and coffee (WB 88, WB pending)
(a) Coffee (WB 88)
(b) Tea (WB 88)
6. Breweries (WB pending)
7. Poultry processing (WB 88)
8. Fish processing (WB 88, 88, 94, WB pending)
9. Meat processing (WB 88, 88, 94, 95)
(a) Slaughterhouses: industrial waste disposal (WB 88)
(b) Slaughterhouses: design (WB 88)
(c) Slaughterhouses: occupational safety (WB 88)
10. Cane sugar (WB 88, WB pending)
(a) Agricultural operations (WB 88)
(b) Mill and refinery operations (WB 88)
11. Grain handling and storage (WB 88)
NN. Gas terminals (WB 94)
OO. Glass manufacturing (WB 88, WB pending)
1. Flat glass manufacturing (WB 94)
PP. Electronics (WB pending)
QQ. Instruments (WB pending)
RR. Plating and electroplating (WB 88, 88, 95)
SS. Dye manufacturing (WB pending)
TT. Coatings manufacturing (WB pending)
UU. Hospitals (WB 94)
VV. Tourism and hospitality (WB pending)
1. Hotels and resorts (WB 94)
WW. Rail transit systems (WB 94)
XX. Roads and highways (WB 91)
1. Rural roads (WB 91)
YY. Ports and harbor facilities (WB 91)
ZZ. Inland navigation (WB 91)
AAA. Large-scale housing projects (WB 91)
BBB. Telecommunications (WB 94)
CCC. Textiles (WB 88, 88, 94, 95)
1. Wool scouring (WB 88)
2. Cotton ginning (WB 88)
DDD. Tanning (WB 88, 88, 95)
References. (Appendix F)
WB 88--The World Bank, Environmental Guidelines, September 1988
WB 88--The World Bank, Occupational Health and Safety Guidelines,
September 1988
WB 91--The World Bank, Environmental Assessment Sourcebook, (3
volumes) 1991
WB 94--``World Bank Environment, Health and Safety Guidelines,''
Draft 1994
WB 95--The World Bank, Industrial Pollution Prevention and Abatement
Handbook, Preliminary Version (June 1995)
WB pending--World Bank guidelines under development
Exim--Export-Import Bank of the United States, ``Environmental
Procedures and Guidelines,'' April 2, 1996
Appendix G--Format for Host Government Notification Letter
[date]
Minister of State for Environment
Republic of------------------------------------------------------------
Dear Mr./Madam Minister: The Overseas Private Investment
Corporation (OPIC) is proposing to issue financing/insurance for an
investment in [name of host country] by a U.S. company. OPIC is an
agency of the United States Government, with the mandate of
facilitating economically productive and environmentally sound U.S.
private investments in developing countries and emerging economies.
OPIC is required by U.S. law to notify appropriate host
government authorities of investments under consideration for OPIC
assistance, which have the potential to pose significant
consequences for the environment. The project that is the subject of
this notification involves an investment by [name of applicant] in
the construction and operation of [concise description of project].
The potential environmental hazards associated with [industry
sector] includes [air, water, solid/hazardous waste, etc.].
Based on information provided to us by the investor, the project
does not appear to pose significant hazards to the environment,
public health, or safety resulting from the diverse impacts of
[industry sector].
OPIC is also required to provide your government with
information about standards and guidelines applicable to such
investments that have been developed by international organizations
or by federal environmental regulatory authorities of the United
States. The relevant World Bank and U.S. Environmental Protection
Agency guidelines are attached for your information.
We understand, of course, that the project will be subject to
the laws of [name of host country] with respect to the protection of
the environment as well as occupational health and safety.
If you have any questions about OPIC's environmental assessment
of this project, you may contact OPIC's Director of Environmental
Affairs at the above address or [phone/fax].
Sincerely yours,
[Name]-----------------------------------------------------------------
President and Chief Executive Officer
Enclosures
Appendix H--Glossary
Environmental Assessment (EA)--analytical tool used to
anticipate potential impacts of particular activities on the natural
[[Page 5653]]
environment and on humans dependent on that environment.
Environmental Audit (EAU)--assessment of environmental and
related human impacts of pre-existing or ongoing activities.
Environmental Impact Assessment (EIA)--comprehensive analytical
effort designed to anticipate environmental impacts of major
projects having the potential to have significant, diverse and
irreversible impacts on the natural environment and on humans
dependent on that environment.
Environmental Impact Statement (EIS)--comprehensive analytical
effort designed to anticipate environmental impacts of major federal
actions affecting the global commons outside of the jurisdiction of
any nation.
Environmental Management and Monitoring Plan (EMMP)--systematic
program designed to prevent, mitigate and monitor anticipated
environmental and related human impacts of prospective and ongoing
activities.
Environmental Remediation Plan (ENR)--systematic program
designed to reverse adverse environmental impacts of previous
activities at a site.
European Bank for Reconstruction and Development (EBRD)--
multilateral development bank established in 1990 to assist in the
economic, social and political development of Central and Eastern
Europe and the New Independent States of the former Soviet Union.
Other members include the European Community and the United States.
Export-Import Bank of the United States (Exim)--independent U.S.
government agency that helps finance the overseas sales of U.S.
goods and services.
Financial Intermediary (FI)--investment fund, bank, or other
financial institution that lends directly to projects or investment
funds guaranteed or insured by OPIC that invest in projects
(``subprojects'') subject to OPIC approval on policy grounds.
Foreign Assistance Act (FAA)--Foreign Assistance Act of the
United States International Finance Corporation (IFC)--affiliate of
the World Bank group that makes loans to and investments in private
sector projects in developing countries and emerging markets.
ISO 14000--basic elements of an effective environmental
management system as developed by the Technical Committee of the
International Standards Organization to provide organizations
worldwide with a common approach to environmental management.
Major Hazard Assessment (MHA)--analytical tool used for
identifying, analyzing and controlling potential major hazards to
human health and safety resulting from storage and processing of
toxic and hazardous substances.
World Bank (WB)--International Bank for Reconstruction and
Development.
Dated: March 31, 1997.
James Offutt,
Assistant General Counsel, Administrative Affairs.
[FR Doc. 97-2874 Filed 2-5-97; 8:45 am]
BILLING CODE 3210-01-P