Public Announcement - African Development Bank's Integrated Safeguards System Update

21 December 2021
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African Development Bank (Abidjan)
press release

The Integrated Safeguards System (ISS) of the African Development Bank is a cornerstone of the institution's vision to support economic transformation in our regional member countries by ensuring that growth is inclusive and achieved in an environmentally and socially sustainable manner.

The ISS, which was adopted in 2014, provides details of the policy requirements - the operational safeguards and procedures - which the Bank applies in supporting borrowers and clients to identify and manage the environmental and social (E&S) risks of development projects, reduce development costs and improve project sustainability.

In 2019, the Bank's Independent Evaluation Unit assessed the relevance and robustness of the ISS design, and the efficiency of its systems, processes, resources and incentives. The assessment also covered ISS's effectiveness in achieving the Bank's safeguard objectives. Based on the findings of the evaluation process, the Bank embarked on a consultative process to update the ISS.

The principal objective of the update is to improve the ISS in view of the evaluation findings and the additional insights gained since the ISS was adopted, and in the light of the evolving broader context of safeguards in multilateral development banks (MDBs).

The ISS update will seek to identify and respond to ISS implementation issues, potential adjustments to its provisions and procedures, and, where needed, amendments to its scope.

The specific objectives of the update process are:

Provide clarity on emerging E&S risk management topics that are relevant to the African context.

Ensure harmonization with the policies of peer institutions with which the Bank co-finances operations in Africa, for better efficiency and mutual benefits.

Ensure cost-efficiency and flexibility in the management of E&S risk and impacts in Bank support to African sustainable development agenda.

The methodology for the ISS update is designed to benefit from extensive internal and external consultation with all the stakeholders. The different stages of the process and their timelines are as follows:

Restructuring the current ISS (which has one policy statement and five operational safeguards) to harmonize it with those of MDB peers (one policy statement and 10 operational safeguards) -Completed

Internal technical review by a Bank-wide Inter-Departmental Working Group (the ISS Technical Reference Group), to ensure all the lessons learned and operational challenges are fully covered and conducive to greater efficiency. -Completed

Endorsement by the Bank Senior Management Coordination Committee, of the draft updated ISS proposed by the Technical Reference Group. -Completed on 11 November 2021

Clearance of the draft updated ISS by the Committee for Development Effectiveness (CODE) of the Bank's Executive Board of Directors -Scheduled for end-January 2022

External consultations with all stakeholders (including civil society organisations, non-governmental organizations, regional and non-regional member countries, other international finance institutions and private sector entities, etc.). -Scheduled for Q1 2022

The draft version that incorporates CODE's inputs will be disseminated to the public at large on the Bank's external website for 45 calendar days, during which stakeholders and the general public may provide feedback and comments. In parallel to this , additional dedicated interactive consultation sessions will be held with agencies and authorities in the following categories:

01 for Anglophone regional member countries

01 for Francophone regional member countries

01 for Lusophone regional member countries

01 for Civil society organizations

The Bank's Management will incorporate all the relevant and feasible contributions and submit the final version to the Board of Directors for consideration (expected by Quarter 3, 2022).

For further questions on the ISS update process please contact:

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