Assess gaps and impacts between national law and IFC PS (PS 6) biodiversity requirements for the Oil Pipeline and Railway Projects in Tanzania for the project financing process and impacts.
The gaps between national and lender requirements affect biodiversity risk, impacts, and mitigation measures, as well as project implementation, schedule, and cost. Project financing in Tanzania depends on external markets, including Development Finance Institutions and commercial banks, which requires compliance with the IFC Performance Standards. The Lenders' credit risk management process, including Environmental and Social Due Diligence under the IFC Performance Standards, indicated that the ESIA reports and the biodiversity risk assessment are inadequate and not sufficiently bankable.
The national environmental impact assessment regulatory framework has not been amended adequately to address the challenges of the current dynamic global environment and the evolving Good International Industry Practice and therefore does not align with the IFC PS.
The late start of the project financing process mid-project implementation results in conducting the studies retrospectively and minimize outcome of these biodiversity studies and assessments because, most of the time, the project detailed engineering design and construction have substantially progressed and approved per the Contract provision under the FIDIC contracts. The changes trigger contract management, disputes and variations.
There is a need to streamline national regulatory frameworks with IFC PS to optimise benefits of the IA during project planning and especially feasibility studies (ESIA/BIA) to inform the project design and facilitate a timely project financing process.
Maria Holo Gaganija is an environmentalist with demonstratable experience of 15 years working in Tanzania and Africa in linear infrastructure , mining and oil and gas projects.