Environmental and Social Review Summary. Airport City Belgrade

Transcription

1 Environmental and Social Review Summary Airport City Belgrade This Environmental and Social Review Summary (ESRS) is prepared by MIGA staff and disclosed prior to the date on which MIGA s Board of Directors considers the proposed issuance of a Contract of Guarantee. Its purpose is to enhance the transparency of MIGA s activities. This document should not be construed as presuming the outcome of the decision by MIGA s Board of Directors. Board dates are estimates only. Any documentation that is attached to this ESRS has been prepared by the project sponsor, and authorization has been given for public release. MIGA has reviewed the attached documentation as provided by the applicant, and considers it of adequate quality to be released to the public, but does not endorse the content. Country: Serbia Sector: Services Project Enterprise: Airport City Belgrade Environmental Category: B Date ESRS Disclosed: May 14, 2014 Status: Due Diligence A. Project Description The project entails the expansion and operation of Airport City Belgrade ( ACB or the Project ), a commercial real estate complex in Belgrade, Serbia. ACB is developed on the site of a former airport, and comprise a number of office buildings and a hangar with administrational office space. The Project has been developed in four phases, and the proposed MIGA guarantee covers only Unicredit Bank Austria financing of phases I, II and IV. The first phase of ACB commenced in 2005, comprising 2 office buildings. The Project has since been extended in phases, with Phases II (2 buildings) and III (3 buildings) completed, and Phase IV currently under construction, comprising one additional building. Upon completion of Phase IV, ACB will offer more than 186,000 square meters of office and retail space in 8 buildings, and associated facilities such as underground parking garages. Two additional plots are available for potential further expansion of the Project, plans are being developed for another commercial/office building, and a conference hotel. The tenants in the office buildings are mainly international companies in the communications and financial sectors, the major clients include Telenor, Unicredit, Telenor Bank, Intesa Bank and PWC. In total, there are around 100 companies renting office space, with additional commercial tenants providing services including restaurants, cafes, travel agency, laundry, and car rentals.

2 Environmental and Social Review Summary -2 - May 14, 2015 B. Environmental and Social Categorization The Project is Category B under MIGA s Policy on Environmental and Social Sustainability (2013). The Project is expected to have limited environmental and social (E&S) impacts that are generally site-specific and largely reversible. Main E&S issues are related to construction impacts, particularly the Project s capacity to manage contractors environmental, social, health and safety performance; worker health and safety; and handling of hazardous wastes and emissions. Measures to mitigate these impacts have been identified. C. Applicable Standards While all Performance Standards (PS) are applicable to this Project, based on our current information the Project will have impacts that must be managed in a manner consistent with the following Performance Standards: PS1: Assessment and Management of Environmental and Social Risks and Impacts PS2: Labor and Working Conditions PS3: Resource Efficiency and Pollution Prevention PS4: Community Health, Safety and Security E&S issues associated with the following PSs were not encountered during the assessment of the Project: PS5: Land Acquisition and Involuntary Resettlement is not expected to be applicable as the Project involves no physical or economic displacement; PS6: Biodiversity Conservation and Sustainable Natural Resources Management is not triggered as there are no known impacts on conservation or biodiversity; PS7: Indigenous Peoples is not expected to be triggered as no known indigenous peoples are within the areas of the Project; and PS8: Cultural Heritage is not triggered as the Project is not located in areas of known historical or cultural significance

3 Environmental and Social Review Summary -3 - May 14, 2015 The following World Bank Group (WBG) Environmental, Health, and Safety (EHS) guidelines are applicable to the project: General EHS Guidelines D. Key Documents and Scope of MIGA Review In addition to reviewing environmental and social documentation, MIGA conducted an E&S site visit at the project site in March During the site visit, MIGA toured the Project site, and met with ACB staff and the building maintenance subsidiary. The following documents were reviewed by MIGA: Commence of Works Construction Permit. Issued by Department for Residential and Commercial Buildings, Belgrade. March 27 th, Occupational Health and Safety Manual for Contractors. Issued by Airport City Belgrade. Monitoring Report, Oil Separation. Issued by the Laboratory for Protection of Environment, November 28 th, Monitoring Report, Gaseous Emissions. Issued by the Laboratory for Protection of Environment, December 2 nd, Close-out Report Airport City Belgrade Phase III. Issued by EC Harris Build Asset Consultancy. April 27 th, Zero Report ACB Phase III. Issued by EC Harris Build Asset Consultancy. January Contract on Provision of Services, Safety at Work Supervisor for Airport City. Dec 12 th, Agreement on Providing Environmental Protection Services. March 4 th, Report on Status and Application of Proscribed Health & Safety Measures. Issued by the Agency for Consulting Safety and Health at Work, Fire Protection and Human Resources. E. Key Issues and Mitigation The Project has implemented a number of management and monitoring programs through third party contractors, related to for example, waste management, water and air emissions, fire safety and occupational health and safety. In most cases, the practices and procedures currently in place adequately address the environmental and social risks and impacts related to the project, as discussed below. PS1: Assessment and Management of Environmental and Social Risks and Impacts Environmental and Social Assessment: Construction of commercial buildings does not require an Environmental and Social Impact Assessment study in Serbia, yet for each Phase ACB has conducted a screening of potential impacts as part its application for Commence of Works permit. The permits define conditions and necessary risk mitigations for construction and operation of the Project, set out by 25 public companies and agencies governing for example water supply, waste water, waste management, air and water emissions, environmental protection, energy, etc.

4 Environmental and Social Review Summary -4 - May 14, 2015 Management Program and Monitoring: ACB has a number of management and monitoring programs in place through third party contractors, related to for example waste management, water and air emissions, fire safety and occupational health and safety. Current systems and programs adequately reflect procedures to manage E&S risks associated with operation. ACB is expected to consolidate available procedures in an environmental and social management procedure in line with the requirements of Performance Standard 1. Emergency Preparedness Procedures: The Project has in place evacuation plans for both office buildings and the construction area. Signage and procedures have been developed by a licensed fire safety inspector in line with requirements set by national authority, who also conduct both planned and unscheduled inspection visits to the Project. Regular drills are held with tenants in the office buildings. Selected staff members have been identified as wardens, and received training related to emergency response including firefighting, first aid, and security. All subcontractor construction staff receive training on emergency response, including evacuating procedures and basic first aid and firefighting skills. Organizational Capacity and Training: The Project has an Environment, Health and Safety (EHS) Manager, reporting directly to the Chief engineer of ACB. A number of contractors have been engaged to provide advice and operational capacity, including environmental Protection services (matters related to water & air quality, recycling, etc.), waste management, health and safety at work supervisor, and fire protection. Each contractor also provide training to ACB and construction staff. PS2: Labor and Working Conditions ACB employs approximately 20 staff, managing and administrating the commercial operations as well as overseeing technical maintenance of the buildings and construction of Phase IV. A contractor has been engaged for maintenance services in the existing buildings. ACB manages the construction of Phase IV with in-house capacity and a number of subcontractors. Working Conditions: The Project indicated that ACB complies with all national requirements related to human resources and working conditions, as defined by the Serbian Labor Law. The law includes provisions for minimum wage, temporary employment contractors, working hours, severance pay etc. ACB has human resources procedures in place in line with the requirement on PS2. ACB is expected to develop and implement a grievance mechanism, accessible to both ACB employees and contractor s staff. Tenants of the office buildings can submit complaints or grievances through ACB s customer relations management. Worker Health and Safety: The Project manages Occupational Health and Safety (OHS) through a Health and Safety at Work Supervisor, who has developed instructions and procedures for OHS, including for both contractors and sub-contractors, and organizes trainings and monthly inspections at both the construction site and office buildings. The Supervisor s obligations include coordination with the Health at Work Department and ensure that legal requirements are met, monitoring of accidents and injuries, reporting to ACB, and providing advice and consultancy services as needed.

5 Environmental and Social Review Summary -5 - May 14, 2015 PS3: Resource Efficiency and Pollution Prevention Air quality: Air emissions arise from a construction site, consisting of mainly dust, and particular matter from construction machinery exhaust. To minimize impact on air quality, ACB sprays the construction area on an as-needed basis, pending weather conditions and construction activities. Emissions from the office buildings are minimized, and are regularly monitored by a licensed third party. Water quality and usage: The Project is connected to the municipal water supply network. Water use at the construction site includes spraying for dust control, cleaning of tools etc. and drinking water to workers. Pre-mixed cement is delivered to the project by trucks, hence there is no mixing at the site. Waste water from both construction site and office buildings are discharged to the municipal sewage system. The underground parking garages are equipped with separate water run-off systems with oil separation tanks. Separated oil is collected and transported for disposal by a licensed third party contractor. The same contractor also monitors the quality of spill water in the parking areas. According to available information, there is no record of levels of pollutants exceeding applicable limits, or spills in the construction area. Waste management: ACB indicated that waste management procedures at both construction site and office buildings follow legal requirements for recyclables, domestic, and hazardous waste. The procedures have been developed by the contractors for Environmental Protection Services, who also oversee and conduct inspections of waste management. Hazardous waste, including chemical containers, waste chemicals etc., is collected and stored in a dedicated storage facility, and transferred and disposed by a licensed contractor. Recyclables, including plastic, paper, metal etc., as well as domestic waste is collected by the building maintenance contractor, transferred to a temporary storage area designed for the purpose and collected by a licensed contractor.

6 Environmental and Social Review Summary -6 - May 14, 2015 PS4: Community Health, Safety and Security Land access for the Project was obtained through a tender process with the Belgrade municipality. At the time of construction of Phase 1, the area was surrounded by empty lots which since has been developed for both commercial and residential buildings. One vacant lot adjacent the Project remains, where there are plans for residential buildings. Third parties have been contracted to provide fire safety equipment and training for the office buildings and its tenants, as well as services related to health and safety at work. The obligations of the health and safety at work contractor include preventive and periodical testing of working environments and equipment in the office buildings; preparations of instructions for safety at work; monitoring of health and safety at work regulations; monthly reporting to ACB and coordination with the Health at Work Department. The obligations for the fire safety contractor include inter alia development and maintenance of fire installations, equipment, and systems related to fire protection; training in fire safety and use of firefighting equipment; regular inspections and visits; coordination with government authorities related to fire safety; inspecting and overseeing fire safety drills. Security Arrangements: The office complex has open access by several road entry points. A licensed security company is contracted to provide unarmed security guards for each building. A number of security cameras are installed both indoor and outdoor, which are supervised from the separate maintenance building. The construction area for Phase IV is fenced and gated, with 24 hours unarmed security guards on site, provided by the same security company. F. Environmental Permitting Process and Community Engagement ACB indicated that it maintains all permits and licenses necessary by Serbian regulation to operate the existing buildings while construction permits have been obtained for each of the Project Phases. G. Availability of Documentation There is no documentation attached to this ESRS.