The government is negotiating a loan from the African Development Bank (AfDB) to finance a national skills development and enterprise acceleration project aimed at creating jobs in priority economic sectors.
According to a Ministry of Finance document, the proposed financing for the Botswana Skills, Entrepreneurship and Enterprise Acceleration for Job Creation in Priority Sectors project has yet to receive approval from the bank and the Botswana government through Parliament.
The Environmental and Social Management Plan (ESMP), which must be attached to the financing agreement, states that the “Government of Botswana is currently negotiating a loan with the African Development Bank to finance the Botswana Skills, Entrepreneurship And Enterprise Acceleration For Job Creation In Priority Sectors (RBF) Project”.
“The Government of Botswana is responsible for compliance with all requirements of the ESMP even when implementation of specific measures and actions is conducted by an entity different from the Project Management Office (PMO),” the document states.
The document does not disclose the proposed loan amount, the expected number of jobs to be created, the project’s implementation period or the specific economic sectors targeted for intervention. It states that once the financing is approved by both the bank and the government, AfDB will provide funding, implementation support and monitoring for the project.
“The Bank will provide financing, implementation support and monitoring for the Project,” the document says. It is understood that the loan negotiations come as the government seeks to use skills development, entrepreneurship and enterprise growth to expand employment opportunities. However, the ESMP does not provide numerical targets against which the project’s promised job-creation impact could be measured. Under the proposed arrangement, the government will remain responsible for ensuring compliance with the bank’s environmental and social safeguards, even where specific activities are carried out by institutions outside the project management office.
“The Government of Botswana is responsible for compliance with all requirements of the ESMP even when implementation of specific measures and actions is conducted by an entity different from the Project Management Office (PMO),” the document states.
The safeguards require the establishment of a project grievance redress mechanism within six months of the loan agreement. The mechanism must be capable of receiving and addressing complaints within 30 days, with records kept to demonstrate that grievances have been handled.
The government must also recruit experienced environmental and social specialists into the project management office within six months of the financing agreement.
The document further requires the submission of quarterly environmental and social implementation reports to AfDB with the reports due no later than the 15th day of the first month following each quarter. Annual environmental and social audit reports must be submitted by March 30 of the following year.
The plan also provides for the suspension of work where environmental, occupational health or safety risks or incidents arise. The bank must be notified immediately, and no later than 72 hours after an incident, while work can only resume after the bank has issued its no-objection.
The requirements are intended to ensure that project implementation complies with AfDB’s operational safeguards and Botswana’s national laws. The government will also be required to disclose the project’s environmental and social reports to the public throughout implementation.
“Implementation of the material measures and actions set out in this ESMP will be monitored and reported to the Bank by the GOVERNMENT OF BOTSWANA,” the document says.
AfDB will, in turn, monitor progress and assess whether the government has fulfilled the agreed requirements throughout the project’s implementation.
The plan also provides for the suspension of work where environmental, occupational health or safety risks or incidents arise. The bank must be notified immediately, and no later than 72 hours after an incident, while work can only resume after the bank has issued its no-objection.
For fatal occupational, environmental or health and safety incidents, the government must ensure that a root-cause analysis is prepared and corrective measures implemented within one month of the occurrence.
