EP7.002.012 NEOM-NEV-PRC-601-01.00-Environmental and Social Assessment and Approval Procedure

ENVIRONMENTAL PROCEDURES
ENVIRONMENTAL AND SOCIAL ASSESSMENT AND

APPROVALS
NEOM-NEV-PRC-601, Rev 01.00, November 2021
©NEOM [2021]. All rights reserved.

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Document History
Revision Code Description of changes Purpose of issue Date
Rev 01.00 First Issue Issued for Implementation 14.11.2021
Document Approval
Prepared by Reviewed by Approved by
Name Peter Caron Dr. Barry Shepherd Damien Trinder
Job Title Manager for Assessment and Manager for Assessment and Acting Chief
Approvals Monitoring Environmental Officer
DOCUMENT CODE : NEOM -NEV-PRC-601 REVISION CODE: 01.00 PAGE 2 OF 24

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Contents
1 BACKGROUND ........................................................................................................... 5
2 PURPOSE .................................................................................................................... 5
3 SCOPE ......................................................................................................................... 5
4 DEFINITIONS AND ABBREVIATIONS ...................................................................... 5
5 RELATED NEOM SYSTEM DOCUMENTS ................................................................ 8
6 ROLES & RESPONSIBILITIES ................................................................................... 9
7 DEVELOPMENT CATEGORIZATION ...................................................................... 10
7.1 Environmental & Social Risk Categorization ............................................................. 10
7.1.1 Category I ................................................................................................................... 11
7.1.2 Category II .................................................................................................................. 12
7.1.3 Category III ................................................................................................................. 14
7.1.4 Category IV................................................................................................................. 15
7.2 Coastal Developments ............................................................................................... 16
8 PROCEDURE............................................................................................................. 18
8.1 Stage 1: Strategic Definition....................................................................................... 18
8.1.1 Baseline Surveys ........................................................................................................ 19
8.2 Stage 2: Masterplanning and Asset Brief .................................................................. 19
8.2.1 Scoping Workshop & Report ...................................................................................... 19
8.2.2 Strategic Environmental Assessment: ....................................................................... 19
8.2.3 Early Works Environmental & Social Management Plans ......................................... 20
8.2.4 Technical Environmental & Social Impact Studies .................................................... 20
8.2.5 Management of Change ............................................................................................. 20
8.3 Stage 3: Design & Tendering ..................................................................................... 21
8.3.1 Environmental & Social Impact Assessment Reports ............................................... 21
8.3.2 Management & Action Plans ...................................................................................... 22
8.3.3 NEOM Environmental Accord .................................................................................... 22
8.3.4 MEWA Environmental Permit..................................................................................... 22
8.4 Stage 4: Construction & Commissioning ................................................................... 23
8.4.1 Construction Commencement Notification ................................................................ 23
8.5 Stage 5: Operations ................................................................................................... 23
8.5.1 Operations Commencement Notification ................................................................... 23
9 DELIVERABLES ........................................................................................................ 24

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List of Tables
Table 1 : Table of Abbreviations ................................................................................................ 5
Table 2 : Table of Definitions ..................................................................................................... 7
Table 3 : Engineering Procedures ............................................................................................. 8
Table 4 : NEOM Regenerative Development Management System Documents..................... 8
Table 5 : NEOM Regenerative Development Categories by Project Typology ...................... 10
Table 6 : NEOM Regenerative Development Categories and Assessment and Compliance
Approach .................................................................................................................................. 11
Table 7 : Deliverable Submission Schedule ............................................................................ 24
List of Figures
Figure 1: Assessment and Approvals Procedure by Development Category ........................ 18

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1 Background
The NEOM Environmental Vision has set ambitious goals for Net Positive Outcomes for the Climate,
Biodiversity and Environmental Quality. The Vision also sets out to ensure sustainable use of
resources, the establishment of a truly circular economy and the engenderment of the most
environmentally conscious citizenry on the planet. In combination, these goals aim to not just maintain
the current environmental and social capital of NEOM, but to also build capacity into the future. The
idea of building environmental and social capital through development is a new and emerging concept
worldwide and is often referred to as Regenerative Development.
NEOM has developed a series of documents that comprise the NEOM Regenerative Development
Management System (RDMS), to guide NEOM Proponents to plan, design, assess, construct and
operate developments in NEOM to achieve economic growth and improve NEOM’s environmental and
social capital. Central to the RDMS is an Environmental, Social and Sustainability Integrated
Assessment Process (IAP) which will help ensure developments meet NEOM’s high demands.
2 Purpose
The purpose of this Procedure is to outline the requirements and key steps for all NEOM Developments
to:
• Assess and manage environmental and social risks in line with International Best Practice,
including but not limited to the International Finance Corporation (IFC) Environmental & Social
Performance Standards; and,
• Obtain Environmental Permits and Licenses from the Ministry of Environment, Water and
Agriculture (MEWA) and – for coastal developments – the Permanent Committee for Coastal
Zone Environmental Protection (PCCEP) as required under Kingdom of Saudi Arabia (KSA)
Environmental Law.
This Procedure is aligned with NEOM Plan of Work (NEOM-NEN-PRC-029), NEOM Regenerative
Development Procedure (NEOM-NEV-PRC-016) and Employer Requirements for Regenerative
Development (NEOM-NEV-EMR-401).
3 Scope
This Procedure is intended to be applied to all NEOM Developments, regardless of scale or level of
environmental and social risks.
This Procedure is for use by NEOM Proponents and relevant Planning, Design, Construction and
Operations Teams.
Specifically, this Procedure shall be used to obtain internal development approvals from the NEOM
Environment Department (NEV) as well as Environmental Permits and Licenses from the National
Centre for Environmental Compliance (NCEC), which is a part of the MEWA and, where applicable from
the PCCEP.
Exemptions and wavers are not permitted for this Procedure.
All users of this Procedure are encouraged to engage NEV at the earliest opportunity to enable smooth
and efficient implementation.
4 Definitions and Abbreviations

Table 1 : Table of Abbreviations

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Abbreviation Explanation
AoI Area of Influence
CESMP Construction Environment & Social Management Plan
DFR Design Freeze Report
ENVID Environmental [& Social] Hazard Identification
ERIR Environmental Risk Identification Report
ESIA Environmental & Social Impact Assessment
ESMP Environmental and Social Management Plan
GER General Environmental Regulations
GRC Gate Review & Approval Committee
IAP Integrated Assessment Process
IFC International Finance Corporation
KSA Kingdom of Saudi Arabia
MEWA Ministry of Environment, Water and Agriculture
MoMRA Ministry of Municipal and Rural Affairs
MOU Memorandum of Understanding
NCEC National Centre for Environmental Compliance
NEV NEOM Environment Department
PCCEP Permanent Committee for Coastal Zone Environmental Protection
PER Preliminary Environmental Review
RDMS Regenerative Development Management System
SEA Strategic Environmental [& Social] Assessment

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Table 2 : Table of Definitions
Term Definition
Area of Influence The area where potential environmental or social sustainability risks may occur
(AoI) in relation to a proposed development. At a minimum this includes the defined
project boundary, but dependent on the scale, nature and complexity of the
development, the AoI may extend for hundreds of meters or even kilometres
beyond the project area boundary.
Construction NEOM Directors, Project Managers, Construction managers, Construction
Team Contractors and Suppliers responsible for mobilization, preparatory works,
construction, commissioning and post-construction site rectification of the
Development.
Delivery Team Organizational elements that form part of the NEOM organization and target
narrow aspects in the development process. For example, Design Team,
Planning Team, Construction Team and Operations Team.
Design Team Project Designers (including architects, interior designers and landscape
designers), Engineering Consultants, Environmental Consultants,
Sustainability Consultants, Specialist Consultants, and Sub consultants
responsible for the Design Deliverables during Stage 3 for the Development.
Early Works Early Works includes technical site studies to support asset design, as well as
establishment of support facilities and initial preparatory groundworks for
proposed developments. Under the Memorandum of Understanding (MOU)
with MEWA, NEOM can seek fast-track approvals to facilitate project schedules
to allow for Early Works to commence in advance of a full development
environmental approval being issued by MEWA.
Environmental Specialized Environmental Consultant selected from NEOM’s Environmental
Consultant Services Framework and engaged by NEV to independently review and advise
the development process and develop and implement environmental and social
risk management documentation and programs through to the end of
Construction.
Environment NEOM department tasked with the delivery of environmental protection and
Department sustainable land use and development.
Iconic (Campus) Large scale complex development projects which are critical to broad social or
Assets community needs. Iconic Assets may include masterplans for stadia, hospitals,
universities, airports and train stations.
Infrastructure Infrastructure and public realm networks that may serve and be part of a Master
and Public Realm Plan Development or connecting multiple developments. Infrastructure projects
may include infrastructure networks, power plants, desalination plants and
other infrastructure facilities. Public realm projects may include large scale
landscaping and hardscaping projects (e.g. parks, public squares, pathways,
and roadside landscaping).
Operations Team NEOM Directors, Project Managers, Facility Operations managers, Facility
Operations Contractors and Suppliers responsible for the start-up, operations,
maintenance, ongoing commissioning, shutdown and upgrade of the
Development.
Planning Team Project master-planners, Project Designers (including architects, urban
designers and landscape designers), Engineering Consultants, Environmental
Consultants, Sustainability Consultants, Specialist Consultants, and Sub
consultants responsible for the Planning Deliverables during Stages 1 & 2 of
the Development.
Proponent The Proponent is a NEOM entity, or a Developer designated by NEOM to
accept custody for the planning, designing, constructing or managing and
operating a particular asset or a group of assets.
Regenerative A development that regenerates its natural, physical, social and economic
Development capitals to a state beyond sustainability. The terminology implies a state of net
positive impact at a future state and requires a holistic approach to nature,
implementing systems thinking and true cost accounting i.e. ecosystems
services accounting.

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Term Definition
Regional Networks of standard and non-standard assets that serves the region such as
Infrastructure regional storage facilities and tanks, regional power stations, material supply
Networks depots (e.g. quarries or waste transfer stations) connected by extensive linear
infrastructure elements such as regional power transmission, water supply
pipelines and roads.
Region-wide Region wide programs contain a collection of individual sites or clusters
Programs dedicated to the implementation or activation of economic sector strategies
such as sports, strategic events and nature-based tourism, typically involving
the installation of a combination of temporary buildings or non-standard assets
and the presence of large numbers of visitors, guest or spectators
Signature Assets High-profile developments that will be indicative of what NEOM represents on
the international stage. These assets will fall within an SEA or masterplan area.
Standard Assets All building types otherwise not considered Iconic; including but not limited to
residential, commercial, hospitality, retail, healthcare, civic, and warehouse
buildings
5 Related NEOM System Documents
The requirements contained in the following documents apply to the extent specified in this
procedure.
Table 3 : Engineering Procedures
Document Code Document Name
NEOM-NEN-PRC-005 Design Stages and Deliverables Procedure
NEOM-NEN-PRC-021 Stage Review and Approval Procedure
NEOM-NEN-PRC-029 NEOM Plan of Work
Table 4 : NEOM Regenerative Development Management System Documents

Document Code Document Name
NEOM-NEV-PRC-016 Regenerative Development Procedure
NEOM-NEV-FRM-401 Regenerative Development Initiation Form
NEOM-NEV-EMR-401 Employer Requirements for Regenerative Development
NEOM-NEV-FRM-402 Environmental Accord Form
NEOM-NEV-PRC-501 Interim Sustainability Requirements Procedure
NEOM-NEV-PRC- Environmental Risk Identification Report Template
601_TMP01
NEOM-NEV-GGD-601 Scoping Workshop Guideline
NEOM-NEV-TGD-601 Technical Guideline on Environmental & Social Assessment Reporting
NEOM-NEV-TGD-602 Environmental and Social Management Plan Template and Guideline
NEOM-NEV-PRC-602 Environmental & Social Risk & Opportunities Assessment for Development
Projects
NEOM-NEV-FRM-603 Preliminary Environmental Review Form
NEOM-NEV-PRC-706 Waste Management Procedure
NEOM-NEV-PRC-702 Environmental Management of Change Procedure

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6 Roles & Responsibilities
There are several key user groups of this Procedure. They are noted below along with a high-level
description of their respective roles and responsibilities:
• Proponent is ultimately accountable for the achievement of Regenerative Development

objectives through the full Development cycle and for ensuring the Delivery Teams execute in
line with the NEOM RDMS.
• Delivery Teams include, and are responsible for the following:
o Design Team is responsible for all planning and design and engineering deliverables
required during Stages 2 and 3, including design drawings, schedules, material levels
and layouts and engaging with NEV and/or the Environmental Consultant to ensure all
inputs
o Construction Team is responsible for providing Construction Execution Plans, Work
Method Statements and other information required by the Environmental Consultant
(refer below) to prepare assessment reports and management plans. The Construction
Team is also responsible for ensuring compliance with all commitments and
requirements set out in approved assessment documents and management plans
during Stage 4.
o Operations Team is responsible for providing Operations Plans, Standard Operating
Procedures and other information required by the Environmental Consultant (refer
below) to prepare assessment reports and management plans need to obtain
Environmental Licenses from MEWA. The Operations Team is also responsible for
ensuring compliance with all commitments and requirements set out in approved
assessment documents and management plans during Stage 5.
• Environment Department (NEV) is responsible for:
o Facilitating baseline surveys for proposed developments.
o Contracting Environmental Consultants responsible for providing technical advice, risk
assessment and management relating to all environmental and social values of the
Development, unless otherwise agreed with the Proponent.
o Reviewing all assessment documentation to ensure it meets or exceed KSA National
regulations as well as applicable international standards including but not limited to the
IFC Environmental & Social Performance Standards.
o Obtaining environmental approvals from the MEWA. This will include reviewing all
relevant documentation required to obtain environmental approvals and submitting
these to MEWA (as part of the Joint Team under the MOU with MEWA).
o Liaising with MEWA during the approval process as part of the Joint Team under the
MOU with MEWA (in conjunction with Government Affairs)
• Government Affairs is responsible for liaising with MEWA during the approval process as part
of the Joint Team under the MOU with MEWA (in conjunction with NEV).

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7 Development Categorization
7.1 Environmental & Social Risk Categorization
All NEOM developments are assigned to one of four (4) categories based on a combination of spatial
scale, complexity, and apparent environmental and social risks.
Developments are defined using the IFC Performance Standards definition…
“… a defined set of business activities, including those where specific physical elements, aspects, and
facilities likely to generate risks and impacts, have yet to be identified. Where applicable, this could
include aspects from the early developmental stages through the entire life cycle (design, construction,
commissioning, operation, decommissioning, closure or, where applicable, post-closure) of a physical
asset.”
NEOM development categories have been benchmarked against:
• KSA Ministry of Municipal and Rural Affairs (MoMRA) Planning Levels

• KSA General Environmental Regulations 1 (GERs) Project Categories
• IFC Performance Standards2 Development Categories.
The IFC Performance Standards are globally recognized as an international benchmark for identifying
and managing environmental and social risk and have been adopted for all NEOM Developments.
Where differences were identified between KSA and IFC approaches in the assignment of project
typologies, NEOM has assigned the project typology to the higher of the two categories to ensure best
practice outcomes can be demonstrated. In addition, where quantitative thresholds have been used to
categorize different scale developments from a single project typology, NEOM has applied a
precautionary approach and lowered the corresponding values. This ensures that the treatment of
NEOM projects in relation to sustainable planning and design, and environmental assessment and
compliance, will always meet or exceed the standard practices under Base Economy regulations.
High level descriptions of the general project typologies under each NEOM development category and
the corresponding external categories for KSA and IFC are shown in Table 5.
Table 5 : NEOM Regenerative Development Categories by Project Typology

Category Typology External
KSA IFC
I Upgrades & renovations to existing standard assets, temporary I C
structures, minor infrastructure components, occurring within an
approved Category IV or III Development
II Standard assets occurring within an approved Category IV or III II B

Development
1 Kingdom of Saudi Arabia Presidency of Meteorology and Environment KSA General Environmental
Regulations and Rules for Implementation (15 October 2001) - Appendix 2.1 Guidelines for
Classification of Industrial and Development Projects
2 FIRST for Sustainability, an Innovation of the International Finance Corporation – Risk
Categorization Table. Website viewed 07/01/2020 - https://firstforsustainability.org/risk-

management/risk-categorization-table/

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Category Typology External

KSA IFC
III Major infrastructure assets, high-risk projects wherever they III A
occur as well as iconic and signature assets occurring within an
approved Category IV Development
IV District & regional structural plans, regional activation programs, N/A

construction support network
The level of compliance applied by NEV to the four Development Categories varies according to their
scale, complexity and potential environmental and social risks. The level of assessment and
compliance approach is detailed in Table 6.
Table 6 : NEOM Regenerative Development Categories and Assessment and Compliance Approach
Category Approach Level of review and approvals
Require a high level of integration of NEV into the planning stages

with a corresponding strategic level (Strategic Environmental
Assessment (SEA)) of sustainability planning, environmental and
IV Strategic social assessment and monitoring. Integration to Design Stages
and level of oversight on Performance management in
Construction and Operation are deferred to the related Category III,
II and I Developments
Require a high level of integration of NEV in planning and design

stages gateway review committees only with a corresponding
comprehensive (Environmental and Social Impact Assessment
III Comprehensive
(ESIA)), detailed supporting studies and action plans and close
oversight of environmental and social performance management
during construction and operations
Require oversight of design stages through compliance submittals,

and a highly focused assessment or detailed review of related
II Focused assessments prior to construction. Attracts a standard audit-based
approach to assurance of environmental and social performance
management
Requires limited oversight of design stages, a preliminary

assessment of environmental risks, restricted oversight during
I Preliminary
construction to site mobilization and demobilization activities, and
routine reporting.
The following sections describe how the categories are applied to NEOM Developments.
7.1.1 Category I
Overview
Category I Developments are those projects whose planning and design present negligible
opportunities to achieve NEOM’s Regenerative Development goals and/or whose construction and
operation pose potentially low risks to people and the environment.
The general approach to Category I developments is for a simple compliance reporting process
involving the submittal of design compliance, management plans, site Acceptance and Handover

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Inspection and ongoing performance reports by the Proponents Team. Environmental compliance also
relies on the monitoring and surveillance work undertaken as part of the related strategic program.
Category I Developments typically comprise elements or activities of an existing Category IV

development which has already undergone extensive integrated planning, design, assessment,
management and monitoring and can therefore be assessed in a streamlined approach.
Category I Developments are closely aligned to KSA Category I and IFC Performance Standard
Category C.
A Preliminary Environmental Review (PER) is a simplified environmental and social assessment that is
completed in conjunction with NEV for Category I Developments using the PER Form (NEOM-NEV-
FRM-603).
Project Typologies
Project typologies occurring in Category I, include but are not limited to:
• Commercial and service industry activities occurring within approved standard assets.
• Manufacturing and production facilities, such as fashion manufacturing including clothing,
shoes, luggage and jewellery, leather, textile, rubber and plastic, which do not generate
hazardous emissions or liquid wastes.
• Minor expansion of irrigation and drainage installations that do not otherwise terminate in a
discharge point to the natural environment.
• Minor expansions of linear infrastructure including pipelines, power lines, local and temporary
roads, not exceeding 20 km in length or 10 hectares in area.
• Temporary buildings and structures used for events or short-term periods (less than 2-years).
• Temporary construction support areas, such as access roads or laydown areas not exceeding
10 km in length or 10 hectares in area.
• Where any of the above listed project typologies are proposed for an area outside of an existing
approved Category IV development, NEV may determine that is managed and assessed as
Category III Development, requiring an ESIA of limited or focused scope.
7.1.2 Category II
Overview
Category II Developments are those projects whose planning and design present some opportunities
to achieve NEOM’s Regenerative Development goals and objectives and/or whose construction and
operation pose potentially moderate risks to people and the environment, but which are otherwise well
known and readily managed and mitigated using standard controls.
The general approach to Category II Developments is for a sustainable planning and design processes
to be integrated on the Proponent side only, with NEV acting as a reviewer and approver of design
compliance reports submitted by the Design Team. Environmental assessment and compliance for
Category II is either by a very targeted risk review and reporting process that relies on the information
from the strategic assessment as well as the monitoring and surveillance work undertaken as part of
the related Category IV Development.
Category II Developments are closely aligned with IFC Performance Standard Project Category B and
Category II Projects as described under the KSA GERs (Appendix 2.1 Guidelines for Classification of
Industrial and Development Projects).

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Consistent with IFC Performance Standard 1 relating to the risk assessment and management of
“greenfield sites”3, Category II developments occurring outside an approved Category IV Development
will be treated as a Category III Development, and subject to assessment via ESIA, with a limited or
focused scope.
Category II Developments typically occur within a Category IV Development, which has already
undergone extensive integrated planning, design. All NEOM standard assets are classified as Category
II and are required to comply with Interim Sustainability Requirements Procedure (NEOM-NEV-PRC-
501)
Sustainable design should follow a standard design guideline developed as part of the approved
Category IV Development. Asset design review and approval is by submission of a set of design
compliance reports at each sub-stage of design.
Category II Developments are assessed using an Environmental Hazard Identification (ENVID)

workshop process and report, which is intended to review the project in the context of a related Detailed
SEA and associated Environmental and Social Management Plan (ESMP) developed using the ESMP
Template and Guideline (NEOM-NEV-TGD-602).
This approach enables rapid approval and implementation of Category II Developments as the low to
moderate nature of the risks associated with these developments can be readily managed by a set of
over-arching documents approved as part of the related Category IV Development.
This Procedure is applicable to Category II Developments during Plan of Work Stages 1, 3, 4 and 5
(NEOM-NEN-PRC-029).
Project Typologies
Category II Project Typologies include, but are not limited to:
• Bulk and wholesale food production such as grain mills, food preparation, processing, refining,
beverage processing and canning factories and abattoirs.
• Construction material production including glass factories, block, brick, ceramic, china and
porcelain factories.
• Expansion and modification of existing linear infrastructure including roads, linear
infrastructure, irrigation and drainage projects and systems, exceeding 20 km in length or
10 hectares in total area.
• Individual Construction Support Facilities such as quarries, crushing, asphalt and batching and
mixing and prefab and concrete plants, not occurring in a complex of three or more separate
operations.
• Local, mobile small-scale power generation including hydrocarbon and thermal power stations,
less than 30 megawatts capacity and associated power transmission lines or transformer
stations.
• Medical and pharmaceutical production facilities including hospitals, drug and medical chemical
production.
• New permanent roads more than 20 km but less than 50 km in length, excluding highways,
tunnels, causeways, bridges and railroads.
• Steel manufacturing and fabrication including engine shops, machine, pipe and boiler works.
Auto and vehicle fabrication and assembly works.
3 IFC Guidance Note 1: Assessment and Management of Environmental and Social Risks and
Impacts. Policy GN, page 7). International Finance Corporation.

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7.1.3 Category III

Overview
Category III Developments provide significant opportunities for ensuring net positive outcomes through
integrated sustainable design and environmental protection considerations. Category III Developments
also present potentially significant environmental and social risks which typically require specific sets
of management controls relevant to the nature and scale of the project.
The general approach to Category III Developments is for a highly integrated planning and design
process, involving NEV as a key decision maker as part of Gate Review and Approval Committees
(GRCs) and a comprehensive approach to environmental and social impact assessment, management,
compliance assurance and emergency response planning.
Category III Developments are closely aligned with IFC Performance Standard Project Category A and
Category III Projects as described under the KSA GERs (Appendix 2.1 Guidelines for Classification of
Industrial and Development Projects).
In line with IFC Performance Standards Category A, all developments involving the resettlement of local
communities or families, or potential risks to areas of high biodiversity (including for example: wetlands,
mangroves, corals) or to cultural heritage are automatically considered a Category III NEOM
Development.
Additionally, all NEOM Iconic and Signature assets are also classified as Category III to ensure these
developments demonstrate the highest level of environmental and social sustainability, providing a
series of showcases for NEOM’s environmental vision.
Category III Developments require careful and integrated planning, design, assessment, management
and monitoring through the full development cycle, and it is NEOM’s intent to take an open and engaged
approach to assessment and approval at each development stage.
Category III Developments shall be designed to meet or exceed international best practice and as a
minimum meet NEOM’s Regenerative Development Technical Standards. This is particularly important
for Iconic and Signature Assets but is also relevant for other typologies.
Due to the high-risk nature of Category III Developments the assessment of environmental and social
risks is undertaken using an ESIA process, consistent with IFC Performance Standard 1. These are
presented in an ESIA report, which is the principal, but not only, assessment document.
While ESIA’s require detailed design information, baseline data and clear consideration of execution
tasks, the scope of the ESIA will be highly focused on those aspects which are not adequately
addressed in the SEA for the related Category IV Development.
This nested approach, enables simplified and rapid assessment of individual assets, as well known and
readily managed risks can be addressed through management documentation submitted as part of the
SEA.
Where NEV considers that the SEA for a Category IV Development has sufficient information and detail
to manage the risks for a related Category III Development, NEV may consider that the development
can be treated under this Procedure as a Category II development, further reducing the requirements
for individual assets.
This Procedure for Category III Developments is to be applied to Plan of Work Stages 1 through 5,
inclusive (NEOM-NEN-PRC-029).
Project Typologies
Project Typologies for Category III Developments include, but are not limited to, the following typologies:

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• Agricultural, aquaculture, excluding domestic, artisanal and subsistence production systems,

as well as vegetable and animal oil and fat refining processes.
• Construction material production facilities including cement plants, consolidated complexes of
crushers, cement and asphalt batching facilities.
• Major chemical and petrochemical industry facilities, such as fertilizers, ammonia, paint, solvent
and detergent industries which produce in excess of 50 tonnes per day. Pesticide and
insecticide plants.
• Major linear infrastructure assets such as pipelines and transmission cables with marine or
trans-boundary crossings.
• Major mobility systems such as bridges, causeways, underground transport tunnels, above
ground railways, express ways and roads in excess of 50 km in length.
• Major power generation facilities including thermal, wind, solar and nuclear power stations.
• Major transport and logistics hubs, such as airports, ports, expansions in berths, yards,
marinas, railway stations, highways and railway lines.
• Major water infrastructure assets including desalination plants, wastewater treatment plants,
dams and all intake/outfall into natural marine or land areas.
• Manufacturing facilities and complexes including but not limited to textile dyeing works
producing in excess of 10 tonnes per day. Major paper production plants.
• Metal production and refinery facilities including Steel and cast-iron plants with a production
capacity in excess of 150 tonnes per day. Metal electroplating plants with a capacity in excess
of 25 tonnes per day.
• Mineral exploration and extraction operations including greenfield quarries.
• Tourist resorts and projects in the vicinity of sensitive ecosystems, significant archaeological
sites, sanctuaries, residential developments and the coastline.
• Waste management facilities including municipal public waste liquid waste disposal and
storage facilities (in the absence of processing plants in the area). Medical waste disposal
projects (transportation, collection, treatment and disposal). Domestic waste treatment and
municipal disposal facilities. Toxic and hazardous waste storage, treatment and disposal
facilities.
• Metal refineries, lead smelting plants.
• Oil and gas separation and treatment facilities, petroleum and petroleum product storage
facilities in oil refining installations, petrochemical industries.
7.1.4 Category IV
Overview
Category IV Developments are planning projects occurring at the local to regional scale (e.g. city
developments, regional infrastructure networks) and incorporate a combination of multiple assets that
are individually classified under Categories III, II or I.
The general approach to Category IV Developments is for a fully integrated planning and design
process with a strategic approach to environmental and social risk assessment and performance
management. The risk assessment approach is also used to determine where potential opportunities
exist for positive effects. The NEV will be a key technical reviewer and decision maker.
Category IV Developments correspond to IFC Performance Standard Project Category A, which

includes “master economic development plans, country or regional plans, feasibility studies, alternatives

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analyses, and cumulative, regional, sectoral, or strategic environmental” 4. For such developments, IFC
recommends a strategic, regional or sector assessment, and this Procedure has been tailored
accordingly to include this level of assessment.
There is no corresponding KSA project category identified in the GERs. However, as subcomponents
of the NEOM Regional Plan, these developments align with local and regional level planning projects
managed by MoMRA and are similar in nature and scale to most Special Economic Zone developments
in KSA, such as the King Salman Energy Park (SPARK).
Category IV Developments present significant opportunities to achieve NEOM’s Regenerative

Development goals and objectives at the city to regional scale. To achieve this, the subsequent design,
assessment, management and monitoring of the related Assets will require careful and integrated
planning to ensure they also contribute to NEOM’s Vision and goals.
Category IV Developments must also meet or exceed international best practice in sustainability
planning standards through the same careful, integrated planning. As a minimum, standards achieved
in each associated masterplan should meet NEOM’s Regenerative Development Technical Standards.
This is particularly important for urban / city developments but is also relevant for other typologies.
Due to the high-level details and long, staged implementation associated with Category IV
Developments, the assessment of environmental and social risks is undertaken using a SEA, consistent
with IFC Performance Standard 1.
Construction and operations cannot occur under an approved Category IV approval, without separate
and additional approvals for related individual assets. However, the IAP uses a nested approach, so
that the subsequent assessment of Category III, II and I developments focuses only on those aspects
that were not fully described or understood in the SEA. This nested approach, enables simplified and
rapid assessment of individual assets, as well known and readily managed risks can be addressed
through management documentation submitted as part of the SEA.
Due to the planning nature of Category IV developments, this Procedure only applies during Work Plan
Stages 1 and 2 (NEOM-NEN-PRC-029).
Project Typologies
Project typologies associated with Category IV Developments include:
• City urban development projects identified in the NEOM Regional Spatial Framework.
• Regional infrastructure networks identified in the NEOM Regional Technical Framework.
• Nature/cultural-based tourism, sport and conservation activation programs identified in the
NEOM Regional Conservation Framework and Sector strategies.
• Logistics networks required to support regional construction activities.
7.2 Coastal Developments
The PCCEP – sometimes known as the Coastal Committee, or Committee of Eight – was established
to assess application for coastal development (including development in the marine environment). The
PCCEP considers approval for coastal developments and comprises the following government entities:
• NCEC
4IFC Guidance Note 1: Assessment and Management of Environmental and Social Risks and
Impacts. Policy Item 11, page 7). International Finance Corporation.

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• Ministry of Finance
• MEWA
• Ministry of Industry and Mineral Resources
• Heritage Commission
• National Centre for Wildlife
• Coast Guard
• MoMRA.
PCCEP Resolutions to date imply approval is required for developments up to 400 m of the mean high
tide mark. In agreeing to the proposal, the Committee may prescribe specific conditions it feels are
necessary to minimize impacts, including protection of public access to the shoreline and coral reefs.

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8 Procedure
The key assessment and approvals steps for the four different development categories are outlined in
Figure 1. The links between Figure 1 and the Plan of Work Stages is described in the sections that
follow.
Regenerative
Project Initiation Development
Initiation Form
NEOM-NEV-FRM-401
Category I Category II Category III Category IV
Preliminary
Environmental Surveys Surveys Surveys
Review (PER)
NEOM-NEV-FRM-603
ENVID ESIA Scoping SEA Scoping
Management Plan
or Work Method
Statement
NEOM-NEV-GGD-601 NEOM-NEV-GGD-601
Environmental and Environmental and Strategic

Social Management Social Impact Environmental
Plans (ESMPs) Assessment (ESIA) Assessment (SEA)
NEOM-NEV -TGD-702 NEOM-NEV-TGD-601 NEOM-NEV-TGD-602
Environmental Risk Environmental and Master Plan

Identification Social Management Environmental
Report (ERIR) Plans (ESMPs) Management Plans
NEOM-NEV-TGD-602 NEOM-NEV-TGD-602
Authority Approval
Figure 1: Assessment and Approvals Procedure by Development Category
8.1 Stage 1: Strategic Definition
Stage 1 is used to define the key project requirements and relevant environmental baseline conditions
for a proposed Development.
During Stage 1, the Proponent (Regional CEO or Sector Head), shall inform the NEV of the
development using the Regenerative Development Initiation Form (NEOM-NEV-FRM-401), as

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described in the NEOM Regenerative Development Procedure (NEOM-NEV-PRC-016). The Project

shall be introduced at a Project Induction Workshop attended by the Proponent and NEV.
8.1.1 Baseline Surveys

The NEV will undertake a baseline survey of the Area of Influence (AoI) for the proposed development
site. An Environmental Baseline Report is prepared for issue during Stage 2 to inform environmental
scoping and assessment. The Environmental Baseline Report is also used by the Proponent and
Delivery Teams in planning and design for the proposed development.
8.2 Stage 2: Masterplanning and Asset Brief
Stage 2 establishes the scope, strategic (or high level) risks and technical studies required to support
the environmental assessment, approval and management of development projects.
Documentation prepared during this stage may also support a staged development approach by
facilitating the environmental permitting and commencement of early works while asset design is being
completed (refer to Stage 3).
8.2.1 Scoping Workshop & Report
During Stage 2A, the Environment Consultant will prepare and facilitate a scoping workshop that shall
be attended by relevant members of the Proponent’s Organization and Delivery Teams.
The Scoping Workshop will be conducted in line with the NEOM Scoping Workshop Guidelines (NEOM-
NEV-GGD-601). Participants in the workshop will agree:
• Planning, design and construction elements to be included in the assessment, including

identification of any development stages to be addressed in subsequent revisions.
• The adequacy of available information and requirement for further baseline surveys or studies
• Any necessary secondary assessment reports.

Within 10 days of completion of the Scoping Workshop the Environmental Consultant shall prepare a
Scoping Report using the ESIA Report Template and Technical Guideline on Environmental & Social
Assessment Reporting (NEOM-NEV-TGD-601).
The Environmental Consultant shall submit the completed Scoping Report to NEV for review. On
successful acceptance of the Scoping Report, the Joint Team under the MOU with MEWA submits the
Scoping Report to MEWA for their review and approval.
Neither the Proponent, the Environmental Consultant, or other parties are to engage with MEWA unless
invited by the Joint Team.
8.2.2 Strategic Environmental Assessment:

For Category IV or III Developments
During Stage 2B the Environmental Consultant shall prepare a SEA Report that is based on the Detailed
Masterplan and incorporates all available desktop and baseline survey information relevant to the
Development.
The SEA shall be prepared using the NEOM ESIA Report Template (NEOM-NEV-TGD-601_TMP01)
and Technical Guideline on Environmental & Social Assessment Reporting (NEOM-NEV-TGD-601).
The recommendations of the SEA shall be incorporated in the final submission of the Detailed
Masterplan and will comprise the conditions by which the Detailed Masterplan is approved by NEV as
a member of the Development GRC.

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The NEOM Environment Department will submit the SEA to MEWA for approval and may use the SEA
to initiate engagement with the PCCEP for coastal projects.
8.2.3 Early Works Environmental & Social Management Plans

For All Development Categories with critical early works requirements:
Under the MOU with MEWA, NEOM can seek fast-track approvals to facilitate project schedules to
allow for Early Works to commence in advance of a full development environmental approval being
issued by MEWA.
During Stage 2B, The Environmental Consultant shall prepare an Early Works ESMP Plan using the
NEOM ESMP Template and Guideline (NEOM-NEV-TGD-602). The Early Works ESMP shall include,
but not be limited to:
• Site investigations
• Supporting facilities, including construction worker camps
• Preparatory works, including any demolition
• Earthworks
• Waste Management Plan consistent with the NEOM Waste Management Procedure (NEOM-
NEV-PRC-706)
• Environmental & Social Emergency Response Plan.
The Design and/or Construction Teams shall support the Environmental Consultant by providing
specific project information required as inputs to the Early Works ESMP, including, but not limited to,
design drawings, equipment schedules, construction methodologies, materials lists, contractor details,
etc.
8.2.4 Technical Environmental & Social Impact Studies

During Stage 2B and 2C, the Environmental Consultant may be required to undertake one or more
technical environmental or social impact studies, to support the preparation and submission of ESIA
Reports (refer to Section 8.3.1).
Potential technical studies may include, but are not limited to, social impact assessments,
environmental health risk assessments, numerical or quantitative modelling, hydrology and flood risk
studies, dredge plume modelling, air quality or noise modelling, light-spill modelling.
specific project information required as inputs to relevant technical studies, including, but not limited to,
design drawings, equipment schedules, construction / dredging methodologies, lighting system
specifications, etc.
8.2.5 Management of Change

At any time during the Plan of Work, should the Design, Construction and / or Operations Teams require
a change to an element of the proposed Development, it shall notify the NEV using the NEOM
Environmental Management of Change Procedure (NEOM-NEV-PRC-702).
Once notified, NEV will undertake a preliminary assessment of the proposed change to identify if further
assessment, management or monitoring is required.
The NEV will inform the Proponent in writing of its assessment within two business days of being notified
by the Proponent.

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8.3 Stage 3: Design & Tendering
Stage 3 is a critical stage under this Procedure as the preparation, review and submission of
documentation to support Environmental Permitting is required during this stage.
8.3.1 Environmental & Social Impact Assessment Reports

During Stage 3B, the Environmental Consultant will finalise the primary reports required to understand
potential environmental and social risks for developments. The documents finalised during this stage
will vary based on Development Category. Assessment reporting for the various Development
Categories is provided below as follows:
• Category IV & III – SEA/ESIA

• Category II – Environmental Risk Identification Report (ERIR)
• Category I – PER.
specific Project information required as inputs to Assessment Reports, including, but not limited to,
design drawings, equipment schedules, construction / dredging methodologies etc.
For Category IV or III Developments
The Environmental Consultant shall prepare a SEA or ESIA (Detailed ESIA) Report using the NEOM
ESIA Report Template (NEOM-NEV-TGD-601_TMP01) and Technical Guideline on Environmental &
Social Assessment Reporting (NEOM-NEV-TGD-601).
The ESIA should incorporate baseline data, including information from Baseline Survey Reports
provided by NEV, additional studies where required, and shall ensure that all critical decisions or design
elements which have arisen during Stage 2B, and which may have a material significance for
environmental or social values or sustainability are presented and assessed.
Where a staged approval of a Category IV Development is required, the Planning Team will prepare a
Design Freeze Report and submit to NEV and the Environmental Consultant, within the timeframe
agreed at the Scoping Workshop.
The Design Freeze Report (DFR) shall be prepared consistent with the requirements of the NEOM ESIA
Report Template and Technical Guideline on Environmental & Social Assessment Reporting (NEOM-
NEV-TGD-601) and shall include but not be limited to the following:
• Sustainability Basis of Design (NEOM-NEV-PRC-501_FRM01)

• Design drawings, specifications, schedules and calculations.
The DFR shall include only those elements or designs that are agreed in the Scoping Report (refer
below) and shall be submitted to NEV as well as the Environmental Consultant, within the timeframe
agreed during the Scoping Workshop.
The Environmental Consultant shall prepare and submit for NEV approval all supporting technical
studies as required by the approved Scoping Report for the Development.
Supporting technical studies may include, but are not limited to:
• Targeted environment surveys and monitoring data

• Numerical, statistical or predictive modelling studies
• Stakeholder engagement reports.
For Category II Developments only

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The Environmental Consultant shall prepare an ERIR using the Environmental Risk Identification
Report Template (NEOM-NEV-PRC-601_TMP01).
To prepare the Report, the Environmental Consultant shall facilitate an ENVID Workshop, attended by
Subject Matter Experts from NEV, the Design Team and the Construction Team.
All ENVID workshops shall be recorded using the NEOM ENVID Workbook Template. An ESMP must
be developed in accordance with the ESMP Template and Guideline (NEOM-NEV-TGD-602).
For Category I Developments only
The Environmental Consultant shall prepare in coordination with the Proponent, a PER for approval by
MEWA using the PER Form (NEOM-NEV-FRM-603).
8.3.2 Management & Action Plans

For All Development Categories:
The Environmental Consultant shall prepare and submit for NEV approval a set of Management &
Action Plans for the Development that could include the following:
• One or more ESMPs covering Earth Works, Construction and/or Operations consistent with the
NEOM ESMP Template and Guideline (NEOM-NEV-TGD-602)
• Waste Management Plan consistent with the NEOM Waste Management Procedure (NEOM-
NEV-PRC-706).
• Environmental and Social Emergency Response Plan
• Site Reinstatement and Rehabilitation Plan.
Additional action and management plans may be required subject to the nature and scale of the
Development and the approved Scoping Report, including but not limited to:
• Dredging Environmental Management Plan

• Greenhouse Gas Emissions Reduction Plan
• Discharge / Emissions Management Plan
• Biodiversity Action Plan.
specific project information required as inputs to the Early Works ESMP, including, but not limited to,
design drawings, equipment schedules, construction / dredging methodologies, materials lists,
contractor details, etc.
8.3.3 NEOM Environmental Accord

During Stage 3B the Proponent shall sign an Environmental Accord with NEV that sets out the key
deliverables to be prepared and submitted for NEV approval during Stage 4 and 5, as well as the
overarching management conditions for subsequent construction and operations activities.
Proponent shall include the ESIA, secondary assessment documentation, construction ESMPs
(CESMPs) as part of the Tender Documents for Construction Contractors engaged for Stage 4.
The Construction Team shall issue the NEOM Employer Requirements for Regenerative Development
(NEOM-NEV-EMR-401), and all relevant deliverables approved by NEV to all contractors.
8.3.4 MEWA Environmental Permit

The environmental assessment documents are provided to NEOM Government Affairs by NEV to
submit to MEWA. For coastal developments, NEV engage the PCCEP. Where required, NEV shall

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engage with the Proponent and/or the Environmental Consultant to address comments or requirements
resulting from the MEWA/PCCEP submission.
Neither the Proponent, the Environmental Consultant, or other parties are to engage with MEWA or the
PCCEP, unless invited by NEV.

Refer to Section 8.2.5.
8.4 Stage 4: Construction & Commissioning
8.4.1 Construction Commencement Notification

Following issuance of the relevant Environmental Accord, construction can commence in line with the
commitments made in the relevant ESMPs and conditions of the Accord. The Proponent shall notify
NEV of the intended date for commencement of construction for the Proposal and invite NEV to
participate in a mobilization inspection no earlier than seven (7) days prior to the commencement date.

8.5 Stage 5: Operations
8.5.1 Operations Commencement Notification

Following issuance of the relevant Environmental Accord, operations can commence in line with the
commitments made in the relevant ESMPs and conditions of the Accord. The Proponent shall notify
NEV of the intended date for commencement of operations for the Proposal and invite NEV to
participate in an inspection of relevant facilities or assets no earlier than seven (7) days prior to the
commencement date.


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9 Deliverables
Table 7 identifies the key deliverables that require preparation and submission to NEV for review. It
should be noted that whilst Table 7 identifies the submission dates, the preparation of deliverables will
commence during the earlier project stages.
Table 7 : Deliverable Submission Schedule
Stages Deliverable Responsible
1 Regenerative Development Initiation Form Proponent
2A Scoping Report Consultant
Environmental Baseline Report NEOM Env Department

2B Strategic Environmental Assessment (Category IV) Consultant
Early Works ESMP Consultant
2C Environmental or social technical studies Consultant
3A N/A N/A
PER (Category I)
ENVID Report
3B ERIR (Category II) Consultant
ESIA (Category III)
Management/Action Plans (e.g. ESMPs)
3C N/A N/A
3D N/A N/A
4 N/A N/A
5 N/A N/A

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ENVIRONMENTAL PROCEDURES

ENVIRONMENTAL AND SOCIAL ASSESSMENT AND

NEOM-NEV-PRC-601, Rev 01.00, November 2021

©NEOM [2021]. All rights reserved.

Revision Code Description of changes Purpose of issue Date

Rev 01.00 First Issue Issued for Implementation 14.11.2021

Prepared by Reviewed by Approved by

Name Peter Caron Dr. Barry Shepherd Damien Trinder

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©NEOM [2021]. All rights reserved.

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©NEOM [2021]. All rights reserved.

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Exemptions and wavers are not permitted for this Procedure.

4 Definitions and Abbreviations

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©NEOM [2021]. All rights reserved.

AoI Area of Influence

CESMP Construction Environment & Social Management Plan

DFR Design Freeze Report

ENVID Environmental [& Social] Hazard Identification

ERIR Environmental Risk Identification Report

ESIA Environmental & Social Impact Assessment

ESMP Environmental and Social Management Plan

GER General Environmental Regulations

GRC Gate Review & Approval Committee

IAP Integrated Assessment Process

IFC International Finance Corporation

KSA Kingdom of Saudi Arabia

MEWA Ministry of Environment, Water and Agriculture

MoMRA Ministry of Municipal and Rural Affairs

MOU Memorandum of Understanding

NCEC National Centre for Environmental Compliance

NEV NEOM Environment Department

PCCEP Permanent Committee for Coastal Zone Environmental Protection

PER Preliminary Environmental Review

RDMS Regenerative Development Management System

SEA Strategic Environmental [& Social] Assessment

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©NEOM [2021]. All rights reserved.

Table 2 : Table of Definitions

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5 Related NEOM System Documents

Table 4 : NEOM Regenerative Development Management System Documents

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6 Roles & Responsibilities

• Proponent is ultimately accountable for the achievement of Regenerative Development

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©NEOM [2021]. All rights reserved.

7.1 Environmental & Social Risk Categorization

Developments are defined using the IFC Performance Standards definition…

NEOM development categories have been benchmarked against:

• KSA Ministry of Municipal and Rural Affairs (MoMRA) Planning Levels

Table 5 : NEOM Regenerative Development Categories by Project Typology

II Standard assets occurring within an approved Category IV or III II B

Categorization Table. Website viewed 07/01/2020 - https://firstforsustainability.org/risk-

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