Ukraine - Coal Pilot Project
Serven, Luis
The central objective of the Coal Pilot Project is to mitigate the social and environmental consequences that arise from the government's decision to close uneconomic coal mines, as part of government's overall restructuring program for the coal sector. The project seeks to: 1) test ways to implement the government's decision to close mines safely, with due regard to technical, environmental, economic, financial and social aspects; 2) ensure that mine workers are afforded opportunities to either transfer to other jobs in the sector or exit the industry with reasonable compensation and a choice of assistance for seeking other employment; 3) transfer social assets to municipal management, support their rationalization and help ensure that adequate social protection measures are put in place to support the most vulnerable people; and 4) through monitoring and feedback, gain experience from the project for subsequent bank assistance operations in the sector. The project consists of the following five components which will serve as the basic framework for mitigation initiatives in subsequent sector operations requested by the government: 1) mitigation of mine closure including physical closure and environmental mitigation; 2) social mitigation; 3) social infrastructure divestiture; 4) institutional strengthening and job counseling; and 5) technical assistance.
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