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RECOMMENDATIONS FOR PROJECT PROPONENTS AND FINANCIAL INSTITUTIONS
from MAPPING PATHWAYS: Towards a Holistic Model for Inclusive and Resilient Linear Infrastructure
by WWF-Myanmar
I. Project proponents should employ the upstream screening checklists provided in Annexes 4 and 5 as part of corporate environmental management systems and to ensure that due diligence is undertaken at all stages of the linear infrastructure project lifecycle.
J. Financial institutions, including multilateral development banks, should require evidence of due diligence that considers resilience and inclusivity issues (drawing upon the upstream screening checklists provided in Annexes 4 and 5) in discussing potential financing for linear infrastructure project proposals.
K. Project proponents and financial institutions should demonstrate that they are incorporating ESG criteria, including criteria that addresses resilience and inclusivity, in the pre-feasibility, design, and construction stages of the linear infrastructure project lifecycle.
L. All financial institutions and legal entities providing financial guarantees, financial assurances, or loans to linear infrastructure projects should conduct an ESG risk assessment that: a. determines if the project has fully assessed and considered potential environmental impacts in the design, construction, and operation of the project; b. ensures that the feasibility study for the proposed linear infrastructure project has included the costs of the EIA, the ongoing costs of complying with the EMP, all liabilities for resettlement, compensation for environmental harm, and all required payments for ecosystem services, as well as sufficient financial assurances for closure, restoration, remediation, or decommissioning as may be required to meet any relevant legal requirements.
M. All financial institutions and legal entities providing financial guarantees, financial assurances, or loans to linear infrastructure projects that do not undertake an ESG risk assessment should be fully liable for damages or compensation for significant impacts on the environment or the community.
N. All financial institutions and legal entities providing financial guarantees, financial assurances, or loans (including primary financing, construction financing, operational financing, and refinancing) for linear infrastructure projects should enter into an ESG covenant to promote the borrower’s compliance in all environmental and social obligations associated with the project (see template provided in Annex 6).
O. Project proponents should be required to provide commitments that they will obtain and maintain insurance coverage for environmental harms, workers’ accident and compensation insurance, and comply with all requirements for financial guarantees or financial bonds.
