Environmental and Social Risk Management (ESRM) Training Specialist
POSITION: Environmental and Social Risk Management (ESRM) Training Specialist
TYPE OF EMPLOYMENT: Short Term Technical Assistance (STTA)
PERIOD OF PERFORMANCE: On/about April 1, 2020 – July 31, 2020
LEVEL OF EFFORT: Up to 25 days, including travel to Kathmandu
BASE OF OPERATIONS: Kathmandu
The Paani Program—also known in Nepali as the “USAID Water Project”, यएसएडपानीपįरयोजना—is a 5 year, $25 million USAID-funded Project in Nepal. Water is the single most important natural resource underpinning Nepal’s economy and livelihoods. The sustainable management of water resources in Nepal depends on addressing climate change and protecting healthy, biodiverse ecosystems. Paani aims to enhance Nepal’s ability to manage water resources for multiple uses and users through climate change adaptation and the conservation of freshwater biodiversity. Paani employs an integrated, whole-of-basin approach with activities under four “intermediate result” (IR) areas at the watershed, river basin, and national scales, to reduce threats to freshwater biodiversity and strengthen the resilience of targeted human and ecological communities in the Karnali, Mahakali, and Rapti river basins through improved water management.
Under the contract Task 3.2.1 under SA 3b, Advocacy for sustainable hydropower development, Paani is developing and conducting trainings for Banks/FIs (B/FIs)on responsible lending that emphasizes the importance of encouraging sustainable infrastructure development, including sustainable hydropower projects, not only to reduce investment risk, but also environmental and social risks.
Within the international financial sector, new standards and codes of conduct have been developed for environment and social risk management by banks and financial institutions. The goals of such standards are to promote corporate accountability and transparency with respect to the impacts of businesses on environment and society, and to encourage sustainable development. The role of environmental and social risk management in B/FIs is to reduce the transaction risks resulting from environmental and social risk factors associated with their clients’ business activities. With a view to integrating sustainability into credit risk management in the financial sector, Nepal Rastra Bank (NRB) has released a Guideline on Environmental & Social Risk Management (ESRM) for B/FIs. The objective is to establish the Environmental & Social Risk Management Framework as the standard process for proactive evaluation and integration of environmental and social issues into the credit risk assessment process of B/FIs.
Paani has been approached by the Nepal Bankers Association (NBA), which represents 27 commercial class A banks of Nepal to provide training on enhancing their understanding of ESR and implementing the NRB ESRM guideline. NRB’s risk management committee has conducted a needs assessment across their members that have requested for a great need for understanding E&S safeguards and implementing the guidelines for their credit managers, head of risk, commercial loan officers, and CEOs.
3. RESPONSIBILITIES AND TASKS:
In close coordination with Paani’s Senior Communications Specialist and Deputy Chief of Party/Chief of Party, and other Paani program’s team members, the training specialist will complete the following tasks:
- Review Central Bank of Nepal’s (Nepal Rastriya Bank, [NRB]) ESRM Guidelines, Government of Nepal’s (GON) policies and laws related to environmental protection, and the International Finance Corporation’s (IFC) ESR guidelines, and other relevant literature.
- With input from Paani, develop a customized training package (including ESRM overview, case studies and tools) for enhancing capacity of Nepalese Banks/FIs on implementation of NRB’s ESRM guideline, and assessment, monitoring, mitigation and management of environmental and social risks associated with lending to the following sectors: hydropower, irrigation, tourism, hospitality, agriculture, cement, pharmaceuticals, among others using interactive training methods such as case studies, group exercises, panel discussions, etc.
- Conduct two-day training for representatives from different B/FIs in Nepal. The first component of the training should provide a general overview of ESRM associated with lending to the various sectors mentioned above and will include incentives for compliance or penalties for non-compliance. The second component should focus on the hydropower sector and other sectors that impact watershed and river system health. Topics included in the course may include, but are not limited to, the following:
- Case studies of actual projects that have benefitted from implementing E&S safeguards, including cost benefits, and projects that have had problems from not implementing E&S safeguards to demonstrate the risks / problems of non-compliance
- Participants sharing of their experiences
- Effective use of NRB provided scorecard
- Integration of ESMS in banks’ credit processing system
- Identification of E & S risk, and reporting of the identified risk
- E & S safeguards, procedures and tools
- Monitoring and processes for following up with client
- Journey to IFC performance standards
- Agreement terms to be included in Credit Facility Offer Letter
- The third component of the training should include facilitation of an interactive discussion and sharing among Banks/FIs and the regulator to arrive at developing sustainable solutions for implementing the NRB’s ESRM guidelines.
- Course outline – reviewed and approved by PAANI and NBA team
- Draft training package – including power point presentations, training lesson plans, referenced documents, group work exercises, case studies, ESRM tools, etc.
- Final training package reviewed by NBA and Paani
- Consultant’s report synthesizing the task/event and lessons learned and recommendations for NBA and members on how to implement ESRM guideline in Nepal
5. LEVEL OF EFFORT/ TIMELINE:
The Environmental and Social Risk Management (ESRM) Training Specialist position is based outside Nepal and will travel to Kathmandu for the training. The level of effort is up to 25 days.
The Environmental and Social Risk Management (ESRM) Training Specialist will work under the direct supervision of Paani’s Senior Communications Specialist and in close coordination with Deputy Chief of Party/Chief of Party, Sustainable Hydropower Specialist, and the Paani Program’s technical team.
- Extensive knowledge on ESRM is required
- Extensive training and facilitation experience for B/FIs is required
- Experience with B/FIs sector in Asia, particularily Nepal, highly preferred