Integrated Safeguards Data Sheet (Updated)

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Integrated Safeguards Data Sheet (Updated) Section I - Basic Information Date Prepared/Updated: 02/02/2005 A. Basic Project Data (from PDS) I.A.1. Project Statistics Country: MEXICO Project: Mexico: Waste Management and Carbon Offset Project Authorized to Appraise Date: January 6, 2005 Bank Approval: March 31, 2005 Managing Unit: LCSFE Lending Instrument: Specific Investment Loan (SIL) Status: Lending Project ID: P Task Team Leader: Walter Vergara Report No: AC841 IBRD Amount ($m): IDA Amount ($m): Global Supplemental Amount ($m): Prototype Carbon Fund ($m): 0.86 Sector: Renewable energy (70%); Solid waste management (30%) Theme: Climate change (P); Pollution management and environmental health (S) I.A.2. Project Objectives (From PDS): Project development objective is to reduce the greenhouse gas emissions caused by methane released during land-filling of solid waste in Mexico. The project will support the development of 3 landfill gas facilities (Guadalajara and Monterrey II, where the methane will be captured and used for power generation with a nominal capacity of 9 Megawatts (MW), and Leon where the methane will be flared). The project is expected to displace an estimated 2.2 million metric tons of carbon dioxide equivalent (mtco2e) up to 2012 and 3 millions tons up to The project will contribute to improve solid waste management practices through a remediation program to strengthen the integrity of closed landfills. The project will also support a "proof of concept", off-grid renewable energy supply, at a poor community in Nuevo Leon. I.A.3. Project Description (From PDS): a) Landfill gas capture and use: The project will support the development of 3 landfill gas facilities, two for the generation of electricity and one for gas flaring, with a combined rated total equivalent capacity of about 10 MW. The 3 facilities are expected to be in operation by Support will be provided through the purchase of greenhouse gas (GHG) emission credits up to 2012, with an option to extend purchases up to b) Remediation program to improve the integrity of closed landfills. The project will support the implementation of specific actions to remediate closed landfills, with the objective of increasing its integrity and reducing impacts on the surrounding environment after closure. The program will be supported with 15% of the net revenues from the sale of GHG reductions from the Guadalajara and Leon sites, where the remediation actions will take place. c) Renewable energy supply at an Ejido in Nuevo Leon. In Monterrey, where there is no need for remediation actions, the project will dedicate 15% of the carbon revenues to support a renewable energy supply at a rural community in the Province of Nuevo Leon.

2 2 TIMETABLE Landfill Gas Capture and Leon Monterrey II Guadalajara Component Use Remediation program to improve the integrity of closed landfills Renewable energy supply at an Ejido in Nuevo Leon Calendar Year Components: Landfill gas capture and use Remediation program to improve the integrity of closed landfills.* Renewable energy supply at an Ejido in Nuevo Leon.* I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) The project will support the development of three landfill gas facilities which are located in the following municipalities in Mexico: Nuevo Leon (Monterrey II), Guanajuato (Leon), and Jalisco (Guadalajara). B. Check Environmental Classification: B (Partial Assessment) Comments: : An environmental analysis framework has been developed and was applied to the proposed landfill plants. Environmental management plans were also developed. The framework was developed on the basis of the successful experience obtained at the Monterrey Plant (see Annex 11 in the PAD). A social impact assessment was carried out and identified social issues in Guadalajara which imply the preparation of a mitigation plan by the municipality. The elements of this plan have been agreed to. The Guadalajara project will only move forward once the mitigation plan has been officially issued by the municipality and approved by the Bank. C. Safeguard Policies Triggered (from PDS) (click on for a detailed desciption or click on the policy number for a brief description)

3 3 Policy Triggered Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) Yes No Natural Habitats (OP 4.04, BP 4.04, GP 4.04) Yes No Forestry (OP 4.36, GP 4.36) Yes No Pest Management (OP 4.09) Yes No Cultural Property (OPN 11.03) Yes No Indigenous Peoples (OD 4.20) Yes No Involuntary Resettlement (OP/BP 4.12) Yes No Safety of Dams (OP 4.37, BP 4.37) Yes No Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) Yes No Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* Yes No Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D.1a. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. Environmental assessment: All three of the proposed projects (Leon, Guadalajara, and Monterrey II) involve the collection and combustion of landfill gas (LFG). Leon will combust the collected LFG in a flare. The Guadalajara and Monterrey II projects will use the collected LFG to fuel engine generators to produce electricity. Overall, the installation and operation of a LFG collection and control system will significantly improve the environment. The primary environmental benefit is the collection and destruction of volatile organic compounds (VOCs) and methane. VOCs contribute to low level ozone formation (a precursor to smog) and methane is a potent greenhouse gas. The secondary emissions of nitrogen oxides (another smog forming compound) and carbon monoxide by the flare will be more than offset by the destruction of VOCs. In addition to emissions reductions, LFG collection will control and reduce odors and subsurface methane migration. This projects will consist of the installation of a comprehensive LFG collection and control system at the Landfills. No project facilities will be constructed off site and no rights of way or easement are required for these projects. The major components of the LFG collection and control system to be constructed at the Landfill are as follows: LFG extraction wells, LFG collection piping, A blower flare station (Leon) LFG fueled power plant (Guadalajara and Monterrey II). During the construction and installation of the projects, potential environmental impacts could arise. Examples of potential impacts include: Noise during construction, Emissions from construction vehicles and equipment, Spilled fuel, engine oil, and lubricant during re-fueling and maintenance activities to support construction vehicles and equipment, Excavated MSW derived from drilling LFG extraction wells,

4 4 Air emissions from LFG extraction well boreholes prior to the wells being completed, and Distressed vegetation is the vicinity of the LFG extraction wells. To minimize the environmental impacts from the above items the following will be performed: Good housekeeping measures will be followed during vehicle and equipment maintenance and re-ueling activities. Spills or leaks of petroleum liquids will be quickly contained and cleaned. Excavated MSW derived from drilling LFG extraction wells will be relocated on the landfill and covered with soil to minimize odors and control vectors. LFG extraction wells will not be left open (i.e., unfinished) overnight unless the borehole is covered to protect air emissions. If significant disturbance of the landfill s vegetative cover occurs during construction, the disturbed areas will be re-vegetated. Noise: As the proposed sites of the plants are not adjacent to neighbors, noise from the engines is expected to be only an occupational safety problem for the workers at the plant. To mitigate effects of noise on employees will be required to use proper ear protection and the engine house will be located away form neighbors and constructed to reduce noise outside the building. The environmental management plan will be in place prior to start up of the units. This plan will use the successful experience and lessons learned from the Monterrey Plant and will cover at least the following topics: Monitoring of emissions from power plant; disposal of engine waste oil, landfill gas condensate; monitoring of groundwater, disposal and recycling of spent engine coolant, methane migration, work-related occupational health and safety issues. In the framework of the environmental management plan the treatment of the wastewater at each site will be analyzed. An annual environmental summary will be available for each plant on the implementation of the plan. Corrective actions would be tracked on an annual basis. Key Remediation Measures were identified to be implemented at the Guadalajara site, to minimize environmental impacts from the landfill after closure. The remediation consists on a revamping of the current ponds for collection of leachate, to be replaced by a collection and recycling system. A conceptual design for these measures has been prepared and is part of the project. Construction will be parallel to the development of the landfill gas unit. A similar arrangement will take place at the Leon site. A conceptual design of the leachate collection system has also been prepared. The implementation of these measures will be funded with 15% of the revenues from the sales of GHG abatement at the site. Some negative impacts are expected during construction of the plants (access road construction, increased traffic, disposal of construction materials, noise, etc.), but these will be mitigated by good construction practices; these practices were already in place during the construction of the Monterrey Plant. Mitigation measures: Two of the landfills in the project, Monterrey and Leon, have been closed for several years; both are well guarded, secured facilities where there are no remaining or expected social impacts. In the case of Guadalajara, the landfill only closed on October 20th, Effective participation of Guadalajara in the project is linked to preparation of a plan to mitigate the impact on 850 registered scavengers (pepenadores) who continue to work at the site on a provisional agreement with the municipality, recycling materials such as glass, cans and cardboard; and on the around 123 persons, who live in poor conditions within the boundaries of the facility. Scavengers, integrated in a union, are well organized and have been negotiating with municipal authorities alternatives to keep their source of income and to protect the housing of the relocate families currently living at the site. The municipality of Guadalajara has expressed a general commitment to mitigate these impacts of closing the dumpsite. The following mitigation measures are being

5 5 discussed: 1. Transfer Station: The purpose of this mitigation measure is to continue to partially maintain the source of employment, benefiting 250 affected people. This work will be carried out in two stages: a) Construction of the platform and road access for a total of $28.4 million pesos, to be carried out from September to November 2004; b) Construction of the metallic structure totaling $10.7 million pesos, to be carried out from April to June Repair of Sorting Belts This consists of carrying out greater maintenance of the sorting belts installed in the industrial section of the Los Laureles plant, totaling $14.5 million pesos to be carried out from February to March These facilities would provide employment to the scavengers displaced from the closed dump-site. 3. Cooperative For the purpose of increasing the culture of formal employment, the Guadalajara City Council and the Concessionaire of the new dump-site are promoting the creation of a scavenger s cooperative that would promote the organized and trained participation of these workers. To this end, the Concessionaire may subcontract scavengers to develop their activities. The Receivership of the Municipality of Guadalajara will be obliged to supervise the legal process of this subcontracting as part of the contact with the concessionaire. 4. Land purchase The purchase of 7.6 ha of land is being negotiated for 392 families. The scavengers leaders have been conducting negotiations to obtain land for those are being carried out by the leader of those affected. They have requested the purchase of 7.6 ha of land, land is located near the Los Laureles Sanitary Landfill to accommodate 392 families; this alternative would provide a new site for housing close to the source of work. This plan has not been officially presented to the Guadalajara City Council. This measure comes in response to the public request of those affected, as a means of retaining their source of employment.nevertheless, the Municipality has stated that there will not be involuntary resettlement and has granted permission to remain at the closed dumpsite to the persons currently living there. II.D.1b. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. None anticipated II.D.1c Describe any potential long term impacts due to anticipated future activities in the project area. No adverse impacts are expected as a direct consequence of the project. On the other hand, the project does support an social and environmental program benefiting the local communities and the global environment on a long term basis. II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) The long term positive impact will be enhanced through the implementation of the renewable energy supply project and environmental programs.

6 6 II.D.3. Describe arrangement for the borrower to address safeguard issues Environmental and social impact assessments were carried out for each site. The Borrower has agreed to implement the identified measures. II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The EMPs were discussed with the Municipalities and landfill operators. In Guadalajara, mmitigation plan alternatives have been discussed with the scavengers union for over a year. The new municipal authorities have continued negotiations along above-described lines and, as discussed during preparation, will continue with this participatory approach until an agreement, satisfactory to both parts, is reached. resettlement is satisfactorily completed. Remediation programs and the Mitigation Plan are being consulted with direct beneficiaries and will be open for public consultation once each project is approved and signed by the parties. In Guadalajara, an agency specialized in social issues (the Technical Secretariat) will overlook preparation, execution and monitoring of the plan in coordination with Public Works and Services Secretariat, which is in directly managing locally the project. E. Safeguards Classification (select in SAP). Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. [ ] S1. Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas [X] S2. One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [ ] S3. No safeguard issues [ ] SF. Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan: Expected Actual Date of receipt by the Bank 8/15/2004 9/13/2004 Date of distributing the Exec. Summary of the EA to the Executive Directors (For category A projects) Resettlement Action Plan/Framework: Expected Actual Date of receipt by the Bank 1/31/2005 Indigenous Peoples Development Plan/Framework: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable

7 7 Pest Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Dam Safety Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Walter Vergara 02/01/05 Project Safeguards Specialists 1: Walter Vergara 02/01/05 Project Safeguards Specialists 2: Maria E.Castro 02/01/05 Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Juan Quintero 4/16/04 Sector Manager/Director John Henry Stein 02/01/05

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