INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized I. Basic Information Date prepared/updated: 10/14/2010 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE Report No.: AC Basic Project Data Country: Paraguay Project ID: P Project Name: PY Energy Sector Strengthening Project Task Team Leader: David Reinstein Estimated Appraisal Date: October 4, 2010 Estimated Board Date: December 2, 2010 Managing Unit: LCSEG Lending Instrument: Specific Investment Loan Sector: General energy sector (100%) Theme: Public expenditure, financial management and procurement (67%);Other rural development (33%) IBRD Amount (US$m.): IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) [ ] No [] 2. Project Objectives The development objective of the proposed Project is to increase the quantity and quality of the provision of electricity services by the Borrower, while improving the Borrower s performance. 3. Project Description The cost of the proposed Project is estimated to be US$125 million (including contingencies, taxes and duties applicable to ANDE) of which US$100 million would be provided by IBRD. The proposed Project would involve three components: the first component aims at providing ANDE with a state-of-the-art Electricity Distribution Management System to enhance the quality of its service, and the strengthening of the metering system to reduce losses and improve the utility s performance; the second component supports the implementation of priority transmission investments in substations and the installation of reactive compensation to increase the quantity and quality of electricity supplied; and the third component aims at strengthening ANDE#s capacity in investment planning and project preparation and at improving the sector and ANDE s performance and transparency.

2 Component 1: Modernizing the Borrower s Distribution Management System and Installing an Advanced Meter Infrastructure for Large Consumers. (Total cost: US$25 million; IBRD financing: US$20 million). This component includes: (i)installation of a state-of-the-art integrated distribution management system (Sistema de Gestión Integral de la Distribución Eléctrica # SGIDE) integrating technical and commercial operations through a turn-key contract procuring hardware, software, database set-up and maintenance, including the installation of the following functional modules: (i) planning, projects and works of the distribution system; (ii) supervisory control and data acquisition operating system and the corresponding remote terminal units; (iii) maintenance, including the provision of training of the Borrower#s staff in the use, maintenance and upgrading of the integrated distribution management system; (iv) technical and non-technical distribution losses; (v) client support (call center); and (vi) implementation of an incidence recording and management system. (ii) Installation of a 66kV and 23kV advanced metering system which allows remote consumption metering and disconnection or reconnection of the Borrower#s large customers. Component 2: Improving the Performance of the Transmission Network (Total cost: US$96.25 million; IBRD financing: US$77 million). This component will provide resources to support: (i)construction of new substations below the existing transmission lines (excluding transmission line investments), including: (i) the construction of a new 220/23kV substation in the area of Barrio San Pedro in the Paraguayan District of Guajayvi; and (ii) the construction of a new 66kV substation in the Paraguayan District of Minga Porá. (ii) Extension of about ten (10) existing substations including the expansion of the transformation capacity of said substations (excluding transmission line investments). (iii) Installation of reactive compensation at the Guarambaré substation in the Paraguayan Central Department. Component 3: Strengthening Paraguay's Electricity Sector and the Borrower's Institutional Capacity (Total cost: US$3.5 million; IBRD financing US$2.75 million). This component will provide resources to support: (i) Improvement of the performance of the electricity sector and in particular, the Borrower, through: (i) the carrying out of an independent institutional assessment of the legal framework, the organizational structure and operational procedures of the electric sector in Paraguay; (ii) the development of an action plan (acceptable to the Bank); and (iii) the implementation of the key priorities established in the action plan in a manner acceptable to the Bank and to the MH. (ii) Institutional strengthening of the Borrower#s capacity in investment and project planning and implementation, through, inter alia: (i) strategic advice to the Borrower#s Presidency on managerial decisions that will enhance its performance; (ii) strategic support from international consultants with successful experience in the implementation of a distribution management system during the first three years of implementation of Part 1 of the Project; (iii) strengthening of the Borrower#s environmental and social unit through provision of best practices and methodologies, and capacity building to ensure oversight of transmission investments under Part 2 of the Project; and (iv) strengthening

3 of the Borrower s financial and asset management practices, its internal auditing unit, and provision of external auditors for the Project. 4. Project Location and salient physical characteristics relevant to the safeguard analysis All investment works are located in the Eastern Region of Paraguay within urban or periurban areas of rural towns and Metropolitan Asuncion. A list of the most critical substations within the Master Plan was screened as also being of low environmental and social risks and impacts. These projects will be implemented mostly in rural or peri-urban areas. Already identified projects to be declared eligible for financing at appraisal will be developed in eight Departments, and include:(i) construction of two new rural substations (66 kv in Department of Alto Parana, District of Minga Pora; and 220 kv in Department of San Pedro, District of Guayaiby); (ii)addition of transformers to ten existing transformer stations in the departments of Central, Misiones, Paraguarí, Itapúa, Caazapá, and Caaguazú Departments, two of which are in urban areas; and (iii) installation of reactive compensation at the Guarambaré substation in the Paraguayan Central Department. No protected areas are near or around the proposed stations and existing forests are highly fragmented and degraded in the region. As deforestation is prohibited in this ecoregion, no forests or natural habitats will be impacted by the proposed works. The construction of two new substations will require purchase of private land (one ha. in one and 2 has. in the second site). Agreements with the land owners with ANDE are under discussions in accordance with OP 4.12 requirements. Both locations are within large mechanized farms of Eastern Paraguay and relatively distant from the local populations. Concerns may be expressed by neighborhood residents around their intended locations and perceived danger from substations due to their associated electromagnetic fields, the possibility of causing fires, among others. 5. Environmental and Social Safeguards Specialists Mr Francis V. Fragano (LCSDE) Ms Graciela Sanchez Martinez (LCSSO) 6. Safeguard Policies Triggered No Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60)

4 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: All impacts both environmental and social are expected to be low given the small scale of the works, low sensitivity of the sites, and the nature of the investments which entail primarily temporary construction impacts and environmental management of operations and installation of new transformers in existing stations. The Project does not plan to finance transmission lines. The EA process has confirmed low expected environmental and social impacts for the project investments. The sub-projects are subject to local government approval, licensing requirements of the Secretary of Environment, and Environmental Impact Assessments (EIAs) and Environmental and Social Management Plans (ESMP) have been prepared under Bank and national standards. Component 1: Modernizing the Borrower s Distribution Management System and Installing an Advanced Meter Infrastructure for Large Consumers. (Total cost: US$25 million; IBRD financing: US$20 million). This component improves the technical and commercial performance of ANDE s distribution activities, by providing the tools for modern and efficient distribution management system and the improvement of the metering system for large consumers. It will not involve construction or other aspects that would generate environmental impacts while social impacts would be positive from greater efficiency in the management of the electricity distribution system. Component 2: Improving the Performance of the Transmission Network (Total cost: US$96.25 million; IBRD financing: US$77 million). This component will focus on implementing part of the high priority investments delineated in ANDE s transmission Master Plan for the country and including new and upgrading of 220 kv and 66 kv substations. Works to be financed through the loan and associated likely impacts are: New Construction and Expansion of Sub-stations. The environmental risks are expected to be low. Adverse impacts potentially resulting from both the construction and operational phases of the sub-projects should be short-term, small scale and reversible. During the construction phase likely impacts include those commonly associated with infrastructure construction projects. They typically include dust and noise control, traffic congestion, management of construction and demolition waste materials, loss of local habitats through land clearing, management and disposal of hazardous construction materials such as fuels and lubricants. During the operational phase of sub-projects, potential environmental impacts are mainly related to the operation of these types of facilities. Possible environmental impacts include management and disposal of transformer fluids, impacts to birds and other smaller wildlife, and noise from transformers. The project will incorporate standards for construction to manage the potential impacts during that phase of the project. Transformers will not utilize PCBs and will be specifically ruled out under the specific ESMP s for each work, while ANDE is implementing a corporate-wide program for elimination of PCB s in its existing transformers. Support is being provided by the IDB to the Environmental Unit of ANDE

5 to foster the ongoing efforts, in coordination with SEAM under the international treaties that apply in this regard. Component 3: Strengthening Paraguay#s Electricity Sector and the Borrower s Institutional Capacity (Total cost: US$3.5 million; IBRD financing US$2.75 million) focusing on: (i) implementing key recommendations to improve the performance of the electric sector, including ANDE, which will result from an integral assessment of the sector; and (ii) strengthening ANDE s capacity in strategic planning, financial management and in investment planning, design and implementation, in particular with respect to mainstreaming and implementing social and environmental safeguards. Expected Social Impacts and Benefits Potential social positive impacts during the construction or updating phase of subprojects are of small scale, creating some unqualified employment opportunities and indirectly increasing the local economy. Negative direct impacts during this phase; include public safety, noise and other nuisance or disruptions, which will be addressed by the environmental and social plans of the subprojects. No indirect social impacts during construction phase such as changes in the demographic dynamic, community or cultural way of living of local residents will be produced since the sub-projects mobilize a small number of workers, not more than 60 at peak stage of the works. Resettlement As stated above ANDE has prepared two Resettlement Plans (RPs) complying with World Bank policies and focused on land acquisition for the two new transformer substations to be sited at San Pedro (acquisition of about 2 has.) and Minga Pora (acquisition of about 1 ha.). At Minga Pora, the land plot will be next to ANDE s existing property, and is a preventive measure for a possible future expansion. Discussions with land owners are underway, and payments will be done at the total reposition cost as defined in the OP4.12, and prior to initiation of the works. Indigenous Peoples As stated previously (section 6- Indigenous People) an Indigenous Peoples Policy Framework (IPF) has also been developed to guide the preparation of specific Indigenous Peoples Plans (IPPs) during project 5-year implementation in cases of site changes, additional investments, etc. The IPF provides adequate guidance to fullfill the principles aiming at enabling free, prior informed, and respectful treatment to the culture of affected indigenous communities. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: No long-term negative environmental and social impacts will ensue because of project activities while positive effects will accrue from support and strengthening of ANDE s environmental and social technical capacities, including their programs for proper management of hazardous wastes and chemicals, and people s security. In the long term, these sub-stations will provide favor social benefits though the availability of increased quantity and quality of the service and expansion of the coverage

6 in at least eight departments of Eastern Paraguay, where electricity is a key constraint to social and economic development. The works that will be supported by the project would increase electricity supply availability to households, commercial and industrial activities. It is estimated that in 2015 about 1.3 million persons will directly benefit from the project. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. A review and a rapid risk-assessment of potential sub-projects included in ANDE Master Plan indicated that several packages might have greater social and environmental risks and concerns associated. An initial screening of the Master Plan was done to prioritize sub-project groups of high priority but of lesser environmental and social concern. As an added risk mitigation strategy, an ESMF has been prepared and disclosed by ANDE and the Bank in case any changes occur during implementation regarding site locations or if funds permit other infrastructure to be constructed. The ESMF would ensure that high risk activities are screened-out and Bank safeguards integrated into any environmental and social assessment process and management plan to be developed. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The EA has reviewed a number of weaknesses and opportunities for improving and strengthening the social and environmental management capacity of ANDE including potential policy or regulatory issues that may need to be considered for improved environmental and social management. The institutional capacity-building plan is proposing specific actions including support from an environmental and from a social consultant, training, and software and equipment to strengthen ANDE s environmental and social unit (ESU) and project resources have been allocated for project implementation. There is full agreement with the Borrower on the actions required to strengthen institutional capacity, and staff with expertise in these areas have already been hired, indicating commitment on the part of the Borrower to address these issues in an integrated manner. This is also reflected in the organizational structure, where environmental and social management is integrated with planning units rather than working in isolation. Capacity-building of human resources, as well as support from an environmental and a social consultant, to comply with the functions expected from ANDE#s Environmental and Social Unit (ESU), and the implementation of requirements previously described. This includes: (i) supervision of compliance with social and environmental laws, decrees, instructions, procedures, and manuals; (ii) preparation of TORs and budgets for the execution of the environmental and social studies and works; (iii) support to ANDE#s Procurement and Contracting units during preparation and evaluation of bids, contracts discussions and compliance supervision of ; (iv) coordination of the dissemination of informative publications, and their integration into the institutional information system; (v) measurement of the results of the activities and comparison with expected outcomes and results and if necessary; and (vi) proposal of corrective measures.

7 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Public Consultation and Disclosure in Designing the EIA, ESMP, RP and ESMF, including IPF and IRLAPF: The development of these instruments was informed by a consultative process which sought feedback from key stakeholders including potentially consumers, municipalities and departments involved, government institutions, and NGO s. Disclosure and consultation of these environmental and social instruments was carried out. Project preparation: Multiple stakeholder groups were involved in environmental and social assessments defining the overall framework for environmental and social management scope both for the plans (EIA, ESMF and RP) as well for the ESMF. Consultation and Disclosure During Project Implementation: All documents are published in ANDE s website and in the Bank s Public Information Center of Asuncion (Paraguay) and in the Bank s website (Infoshop) in Washington. Disclosure will continue as required during the implementation of the project. Disclosure and consultation were consistent with the national regulations and the provisions of the Bank s Operational Policies. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Date of receipt by the Bank 10/13/2010 Date of "in-country" disclosure 10/14/2010 Date of submission to InfoShop 10/15/2010 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Date of receipt by the Bank 10/13/2010 Date of "in-country" disclosure 10/14/2010 Date of submission to InfoShop 10/15/2010 Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank 10/13/2010 Date of "in-country" disclosure 10/14/2010 Date of submission to InfoShop 10/15/2010 Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop

8 * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP Environment Assessment Does the project require a stand-alone EA (including EMP) report? If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? OP/BP Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? OP/BP Physical Cultural Resources Does the EA include adequate measures related to cultural property? Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? OP/BP Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate) been prepared in consultation with affected Indigenous Peoples? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? If the whole project is designed to benefit IP, has the design been reviewed and approved by the Regional Social Development Unit or Sector Manager? OP/BP Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? OP/BP Forests Has the sector-wide analysis of policy and institutional issues and constraints been carried out? Does the project design include satisfactory measures to overcome these constraints? Does the project finance commercial harvesting, and if so, does it include provisions for certification system? No N/A N/A N/A No

9 The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank s Infoshop? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? No No D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr David Reinstein 10/14/2010 Environmental Specialist: Mr Francis V. Fragano 10/14/2010 Social Development Specialist Ms Graciela Sanchez Martinez 10/14/2010 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Glenn S. Morgan 10/14/2010 Comments: Sector Manager: Mr Luis Augusto Yepes Gallego Comments: Mr Yepes as Acting Energy Sector Manager