4. Monitoring
JBIC Guidelines for Confirmation of Environmental and Social Considerations

Here are JBIC's answers to Frequently Asked Questions (FAQs) about the Environmental Guidelines.


4.1Q. What is the purpose of monitoring?

A. JBIC conducts monitoring to ascertain that the project proponent makes appropriate environmental and social considerations. Monitoring is also carried out in order to contribute to the early detection of initially unforeseen adverse impacts. Therefore, when a problem is identified through monitoring, JBIC promptly informs the borrower and urges him to take an appropriate action.
The Environmental Guidelines stipulates in Section 1 (9) of Part 2 "It is desirable, after a project begins, the project proponents monitor … and that they then take appropriate measures based on the results of such monitoring." It further provides that in the case a problem is identified as a result of monitoring, JBIC "may ask the project proponent to take appropriate action through the borrower" (Section 4-(4), Part 1), thereby addressing unforeseen impacts.

4.2Q. Why do the Environmental Guidelines not stipulate in advance items requiring monitoring and the monitoring period?

A. The Environmental Guidelines is based on an idea that monitoring plays an important role in checking whether the measures have been implemented as initially planned, whether the initial plan itself was sufficient, and whether any unexpected external changes have had adverse effects on the environment. JBIC thus confirms the results of monitoring conducted by the project proponents for category A and B projects.
JBIC does not think it appropriate to determine in advance, across the board, which items need to be monitored and for how long. They are decided after considering various factors including the sector, nature and characteristics of the project and conditions in surrounding areas.
The main items requiring monitoring are considered as follows:

  • Permits and approvals, explanations (Response to matters indicated by authorities)
  • Anti-pollution measures (Air quality and water quality etc.)
  • Natural environment (Ecosystems: Impact on valuable species, countermeasures, etc ); and
  • Social environment (Resettlement etc.)

These are laid out in advance under "Items Requiring Monitoring" in Section 6 of Part 2 in the Environmental Guidelines.
Monitoring will be carried out in accordance with an agreement reached with the borrower on the frequency of monitoring and items requiring monitoring.

4.3Q. Are studies of proposed project sites JBIC conducts for monitoring different from field studies implemented already?

A. Monitoring results are submitted by the project proponent. As stipulated in Section 4-(4) of Part 1 in the Environmental Guidelines, where necessary, JBIC may conduct its own field study. To date JBIC has carried out such field studies while consulting with outside experts when necessary and intends to continue to do so in the future.

4.4Q. It is important to conduct monitoring appropriately. What specific measures is JBIC taking to strengthen the environmental monitoring system?

A. Checking monitoring is recognized as important for confirming whether planned measures have been steadily implemented, whether these measures are adequate, and whether any unforeseen changes in the external conditions are causing adverse impacts on the environment. As such, JBIC has been making efforts to strengthen the system for checking monitoring.
For example, in some projects, third party environmental consultants have evaluated environmental monitoring conducted by the project proponent.

4.5Q. How long is the monitoring period? Even when it is clear that project operation is appropriate, isn't it inefficient to continue monitoring that project?

A. It is appropriate to determine the monitoring period for each project in accordance with the nature of the project, the seriousness of potential environmental impacts, uncertainties and other factors.
When JBIC confirms that the project is operated properly in light of the nature and actual conditions of the project and the sector it belongs to, JBIC's check of monitoring will be simplified or brought to an end after a certain period of time in order to achieve operational efficiency.

4.6Q. Doesn't JBIC conduct monitoring for sub-projects of Category FI projects?

A. Regarding the environmental reviews or monitoring conducted when sub-projects of Category FI projects are categorized as A or B, either JBIC itself or financial intermediaries conduct them, depending on the capabilities, experience and stance of the financial intermediaries.
When financial intermediaries conduct environmental reviews or monitoring, JBIC ascertains information on sub-projects for which investments or loans are provided through financial intermediaries and, where necessary, receives reports from the financial intermediaries, etc.