- E & S
- ACADEMIC CORNER
Sound management of environmental and social risks protects the environment, safeguards project-affected people and workers, secures a social license to operate and guards against a variety of risks during construction and operation.
Projects receiving GET FiT support are therefore expected to comply with Ugandan regulations as well as international standards, particularly the environmental and social performance standards (PS) of the International Finance Corporation (IFC). The IFC PS act as a global benchmark and are widely applied by international financing institutions and private investors, which also make these a convenient common reference point in multi-donor funded initiatives like GET FiT.
It is important to note that the Ugandan regulations and the IFC PS overlap greatly, though there are also some important differences. Examples of differences include the IFC PS requirement of compensation for loss of assets based on full replacement cost (market value + transaction costs) rather than Uganda’s requirement of using depreciated value, and the IFC PS requirement for biodiversity offsets when a project impacts a protected area such as a national park (no such requirement in current Ugandan legislation).