SUSTAINABLE INDUSTRIAL ZONE DEVELOPMENT IN PERU GEF Project ID 9206

Environmental and Social Management Plan Management and mitigation measures to integrate environmental and social sustainability elements into project implementation Table of Contents 1. Project Description ...... 2 1.1. Project context ...... 2 1.2 Environmental characteristics of the project area ...... 4 Precipitation ...... 4 Temperature ...... 4 Relative Humidity ...... 5 Winds...... 5 Hydrogeology ...... 6 Vegetation ...... 6 Fauna ...... 7 Land use and urban zoning ...... 7 1.3 Demography and socio-economic conditions ...... 8 Socio-economic conditions ...... 9 Main socio-economic problems ...... 9 1.4 Socio-environmental Issues ...... 10 Noise pollution ...... 11 Atmospheric emissions and air quality ...... 12 Lead Contamination ...... 13 River and sea pollution ...... 14 Solid waste management ...... 14 2. Policy, legal, and administrative framework ...... 15 2.1 Policy Framework ...... 15 2.2 Legal and Administrative Framework ...... 16 2.3 Laws, Regulations, Guidelines and Standards ...... 16 2.4. Relevant international agreements ...... 18 3. Environmental and social impacts ...... 18 3.1 Positive environmental and social impacts ...... 18 3.2 Adverse socio-environmental impacts ...... 19 3.3 Mitigation Measures ...... 23 3.4 Environmental and social sustainability monitoring ...... 24 3.5 Capacity Development and Stakeholder Engagement ...... 25 Stakeholder Engagement ...... 25 Capacity Building ...... 26 3.6 Implementation of the ESMP ...... 26

1. Project Description 1.1. Project context The Project “Sustainable industrial zone development in Peru” focuses on the Constitutional Province of Callao1, seat of the city of Callao, a natural port of the metropolitan city of Lima, capital of Peru, founded in colonial times. Callao currently congregates the major industrial infrastructures of the country, along with Peru’s most important port and airport, the Jorge Chávez International Airport. The Province of Callao, comprising seven districts (Fig. No 1 and 2) - including the Callao District - has a total surface area of around 4,600 hectares, hosts 3,180 businesses (20% of the country's manufacturing industry) and - through its port - handles around 75% of Peruvian imports and exports. A total of 25,000 people are employed in several industrial areas (concentrated along the Gambetta, Faucett and Argentina Avenues) covering companies from a variety of industrial sectors, including food processing, chemicals and plastics production, foundries and metal processing, logistics, amongst others. Figure No 1 Map of the Constitutional Province of Callao in relation to Metropolitan Lima

Note: The new district of Mi Peru was formed from a division of the Ventanilla District in 2014.

1 The administrative and political denomination “Province of Callao” will be used in this document. This territory comprises 7 districts, including the Callao district also known as “Callao Cercado”, and its limits coincide with the jurisdiction of the Callao Region. From an environmental and resource perspective, Region and Province could be used interchangeably, but we prefer Province as urban land use zoning and other relevant environmental competencies belong to the provincial jurisdiction. Figure No. 2 Location map of the Constitutional Province of Callao

The 2010 PRODUCE Business Directory reports eight primary industrial sectors in the Callao District with a total of 358 companies and 14,435 employees. In the rest of the Province, covering the District Municipalities of Bellavista, Callao, Carmen de La Legua Reynoso, La Perla, La Punta and Ventanilla, there are 612 companies in these main sectors with almost 20,000 employees. Industrial activities located in Callao generate a wide range of pollutants. Air emissions (particulates, SO2, NOX) and GHG emissions from industrial activities are mainly caused by food, fish processing, chemical, metal/foundries, plastic and textile industries due to industrial operations with high heat requirements, inefficient technology (low tech and old technology), losses due to bad insulation and inadequate operation and maintenance. Further inadequate operation of cooling systems leads to the outflow of refrigerants with very high global warming potential (GWP). Other air pollutants, acting as precursors for GHG like NMVOC, SO2, NOx and CO have also been reported by the Regional Health Directorate (DIRESA-Callao). Considerable PCDD/PCDF emissions are produced from inadequate combustion and untreated emissions from, for example, the metallurgic industry. Lead pollution has been a historical problem derived from the transport of minerals in open trucks to the port area and from these to export containers.

1.2 Environmental characteristics of the project area Precipitation The area is characterized as having mild precipitation, in terms of intensity and volume, which originates from the cold oceanic mass of the Coastal Current (especially in the winter time) that gives rise to the formation of dense layers of fog or low clouds of stratocumulus. This generates a frequent and mild winter rain known as drizzle or garua, a type of precipitation characterized by having a very small droplet size (less than 0.5 mm diameter).

Results from 44 years of record-keeping at the Jorge Chávez meteorological station show periods of increased rainfall between June and September; indicating that the wet season is concentrated in these months. This rainfall, however, never reaches a high level, but only slightly moistens the surface soil and sometimes causes some slight flooding in paved areas and trenches. As of October, when the dry season begins, precipitation diminished significantly, reaching values lower than 0.1 mm/day (Table No 1).

Table No 1. Precipitation: Monthly Total Precipitation (with an average annual value of 7 mm)

Precipitation Jan Feb March April May June July Aug Sept Oct Nov Dec Maximum 10.5 2.9 2.5 0.7 3.2 4.8 3.3 6 6.7 2.9 1.5 1.8 Average 0.8 0.6 0.5 0.1 0.5 0.8 0.9 1.0 0.8 0.4 0.2 0.4 Minimum 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Source: CORPAC S.A. – Área de Meteorología Aeronáutica, 2014.

Given low monthly and annual rainfall, the climate of the coast in Callao is considered extremely arid, despite sporadic heavy rainfall in summer months, which are not necessarily linked to El Niño Phenomenon or to climate change. These rare occasions have been known to cause significant damage to people, infrastructure and services because the coastal zone and its urban areas are not prepared for this occurrence. Temperature The annual temperature pattern is clearly seasonal, with maximums in summer and minimums in winter. Monthly temperatures, as recorded by the International Jorge Chavez (IJCH) station (period 1979-2013), range from a minimum value of 16.7°C in the month of August and a maximum value of 23.3°C in the month of February. The multiyear average in this period is 19.6°C. With respect to the average maximum temperature, it varies from 18.9°C (August) to 27.4°C (February), with high temperatures between the months of December (24.5°C) to April (24.8°C). The average minimum temperature ranges from 15.3°C (September) to 20.6°C (February), with a multi-year average of 17.6°C (Table No 2).

Table No 2. Temperature patterns: Monthly Maximum, Minimum and Average

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Average Max Mean 26.4 27.4 26.9 24.8 22.2 20.2 19.4 19.5 19.5 20.5 22.3 24.5 22.7 T° (°C) Monthly 22.6 23.3 22.9 21.0 19.0 17.8 17.2 16.7 16.8 17.6 19.0 21.0 19.6 T° (°C) Min Mean 20.1 20.6 20.2 18.5 16.9 16.3 15.8 15.3 15.3 15.9 17.0 18.8 17.6 T° (°C) Source: CORPAC S.A. Área de Meteorología Aeronáutica, 2014

Relative Humidity Data from 1979 to 2013, collected by the Jorge Chávez Airport indicates values between 79.1% and 83.4% with a multiyear average of 81.3%, close to the saturation percentage of the air (100%). In general, there is an inverse pattern with temperature, i.e. in the dry season with higher ambient temperatures, relative humidity is low, whilst in the wet or winter season, and relative humidity is high. During the months of January to March the percentage of humidity is almost constant, increasing progressively from April to November (Table No 3).

Table No 3. Relative humidity registers at the Jorge Chavez International Airport Station (IJCh) Relative Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Humidity Maximum 86 85 86 88 90 89 88 89 88 87 87 88 Average 79.3 79.1 79.5 81.6 83.4 82.7 81.9 82.9 83.1 81.9 80.3 79.7 Minimum 74 73 72 74 75 73 72 77 79 78 76 76 Fuente CORPAC S.A. Área de Meteorología Aeronáutica, 2014

Winds The Wind Chart shows a clear dominance of southern winds prevailing throughout the 35 years of monthly data collection from 1979 to 2013, with small variations ranging from 160°to 200 i.e. SSW-SSE (Fig. No 3). This directional uniformity of the prevailing winds is due to the general aerial circulation coming from the South Pacific anticyclone. However, minor variations are present throughout the year, mainly under the influence of local morning and evening oscillations, seasonal changes and sea-land breezes.

Figure No 3 Wind Chart (IJCh)

Fuente: Dirección y velocidad del viento de la estación meteorológica Aeropuerto Internacional “Jorge Chávez

Regarding speeds, the average monthly values are between 1.6 to 5.6 m/s (3.2 to 10.9 knots). According to the Beaufort scale, these winds are generally classified as very low intensity winds, qualified on the scale as Breeze (very weak breezes) and Loose (light breezes). The records of the period 1979 - 2013, have an average speed of 3.3 m/s (6.4 knots).

Hydrogeology The general hydrogeology is characterized mainly of shallow surface hydrogeological units as well as aquifers of low to moderate depth that supply groundwater wells. These superficial and moderate depth hydrogeological units are related to the wide Pleistocene alluvial fan deposited by the Rimac River. Pleistocene alluvial deposits are forming the conjectures and comprise conglomerates of intrusive and volcanic rocks, gravels, thick sands, silo-sandy and clay-loam. These sedimentary alluvial deposits contain large aquifers of moderate depth, of the porous type, limited in some cases by fine sediments of low to zero permeability.

Several hydrogeological studies carried out on major projects in the area, such as the expansion of the runway at Jorge Chavez International Airport as well as the new Gambetta department road - which includes a tunnel and the Gambetta bridge- allowed the identification of an aquifer body corresponding to the alluvial deposits of the cone of ejection of the rivers Rímac and Chillón, located to the South and North of the Jorge Chavez International Airport respectively. This aquifer is characterized by being mainly of the free and porous type. The recharge of the aquifer from alluvial deposits is generally by the direct precipitation of the rains and runoff waters that are generated in the outcrops and foothills of the Western Cordillera located towards the East as well as the lagoons and springs of the ravines that drain the rivers Rímac and Chillón with a groundwater flow direction East - West through its discharge in the Pacific Ocean. Vegetation The study area is located on the semi-desert belt of the Peruvian coast that contains a unique area of life: the desiccated subtropical desert (dd-S) (ONERN, 1976). According to the Map of the Peruvian Vegetation Coverage (MINAM, 2012), the project is within the areas of Coastal and Andean Agriculture (Agri) and Ciudad (Ciu); and according to the National Forest Patrimony Map 2010 (MINAM, 2010), it is found in the coastal desert with scarce vegetation and coastal urban and agricultural areas.

There are three dominant vegetation units: desert plains and slopes (UV01), vegetation associated with cultivated areas (UV02) and vegetation of parks and gardens (UV03).

A. Plains and desert slopes: the vegetation is composed of six (06) species and six (06) families of vascular plants. The vegetation registered consists mainly of herbaceous species with presence of weeds (invasive species) that originate from cultivated fields nearby. B. Vegetation associated with cultivated areas: it is located on a plain with plots of cultivation, which at present are mostly abandoned. 21% are vegetables or fruit trees, 49% of the species are weeds (invasive plants), while the rest is coastal habitats vegetation. C. Vegetation of parks and gardens: 76% of recorded species are exotic, while only 20% are native. According to their form of growth, 20% are trees, 28% are shrubs and 52% are herbs.

Fauna The extensive conversion of the landscape into urban and agricultural land has reduced the presence of natural fauna. Domestic animals and rats are the most abundant fauna species. Birds are represented by migratory species and species typical of the marine coastal habitat (seagulls, pelicans, cormorans, piqueros, guanay, amongst others). Land use and urban zoning The Urban Zoning developed by the Regional Government of Callao, describes 9 main areas, from residential and recreational, to industrial, logistics, commercial, etc. (Table No. 4. And Fig. No. 5). The Ecological-Economic Zoning also provides a microzoning of the Callao Region/Province (Fig. No. 6). Table No 4. Main zones identified in the Callao Development Plan (2011-2022)

Relevant features, as demonstrated in figure No 5, include:

- Consolidated residential areas in the districts of La Punta, Carmen de la Legua, Bella vista (in orange); - A dominant industrial area along the marine coastline, parallel to the Gambetta Avenue, three blocks towards the coastline in the Callao district and –partly- at the entrance of the Ventanilla districts (in purple); - A very extensive area zoned as “Other Uses” which comprises the port and airport infrastructure (in grey); - No environmental protection areas, except for the Ventanilla wetlands towards the north and marginal areas in the surrounding desert slopes (in green); - Mixed light industry, commercial and residential uses (dominantly orange), especially in the most consolidated urban areas, with a trend towards higher densification (from low to medium-high density, especially in the Callao district).

Fig. No 5. Callao Zoning, according to the Callao Development Plan 2011-2022

1.3 Demography and socio-economic conditions The National Institute of Statistics and Informatics (INEI) revealed that as of June 30, 2014, the population of the Constitutional Province of Callao was 999,976 inhabitants, distributed in the districts of Bellavista, Callao, Carmen de la Legua Reynoso, La Perla, La Punta, Ventanilla and the recently created Mi Peru. More than 700 thousand inhabitants reside in districts of Callao and Ventanilla. The district of Callao is the most populated of the First Port with 410,640 inhabitants followed by Ventanilla with 355,830 inhabitants. The district of La Perla has 59,518 inhabitants, Mi Peru 56,371 inhabitants, Carmen de la Legua Reynoso 41,431 inhabitants and La Punta 3,521 inhabitants.

The gender ration of the total population of the First Port consists of 50.2% (501,950) women and 49.8% (498,026) men. In all the provincial jurisdiction, the resident population is considered exclusively urban. According to INEI, since 2010, population growth rates in all districts of Callao are negative, with the exception of the Ventanilla district, projecting that in the year 2015 its population will surpass that of the Callao district. The INEI projections for the year 2014 show a decrease in the child population and a tendency for the adult and older adult population to increase.

Of every 100 inhabitants of the Constitutional Province of Callao, 40 are between 30 and 59 years old. By age group, the majority of the population is between 30 and 59 years old with 400,619 inhabitants (40.1%), followed by the population groups from 18 to 29 years of age with 203,615 inhabitants (20.4%), aged 60 and over with 106,587 inhabitants (10.7%), 12 to 17 years of age with 98,120 inhabitants (9.8%), from 6 to 11 years old with 96, 629 (9.6%) and 0-5 years old with 94, 606 inhabitants (9.5%). Four districts of Callao concentrate the greater proportion of the minor population: the districts Mi Peru, Ventanilla, Callao and Carmen de la Legua Reynoso have the largest proportion of the population under 18 years of age.

Socio-economic conditions

In 2013 in the Constitutional Province of Callao 14 out of 100 people were considered poor. The incidence of poverty in the year 2013, reached 13.5% of its population, which represented a reduction of 5.2 percentage points compared to the year 2012, where 18.7% of its population had this condition.

In the year 2013, 94.0% of the households had potable water by public network, an increase of 2.1 percentage points compared to the year 2012, which registered coverage of this service of 91.9%. On the other hand, 99.4% of households in Callao have public lighting, followed by 0.3% using candles. In the year 2013, 92.3% of the households use gas for the preparation of their food.

According to the latest census, the predominant educational level is the secondary school, which has reached more than a third of the population. Primary education and non-university higher education continue in order of importance, each accounting for about 20.0% of the total. The proportion of people with university education in the Constitutional Province of Callao and in the district Callao, skirts 15.0% in each case. The most important changes in the intercensal period 1993-2007 correspond to the population with primary education (whose proportion decreased by approximately 10 percentage points) and to secondary education, which decreases between 4 and 5 percentage points. On the contrary, the proportion of people without educational level doubles, while access to non-university and university higher education is experiencing a general increase.

The 2007 census showed that the illiteracy rate was very low (1.6%), and that, in terms of gender, there were strong asymmetries to the detriment of women. However, these figures allowed Callao to be classified as a territory free from illiteracy.

The Regional Directorate of Health of Callao (DIRESA Callao) designs, proposes, executes and evaluates health care policies in Callao. It is in charge of 47 health facilities, distributed in 3 networks: BEPECA Health Network (Bellavista, La Perla and Callao), Red Bonilla and Red Ventanilla. The Constitutional Province of Callao has 3 hospitals: Daniel Alcides Carrión Hospital, San José Hospital and Ventanilla Hospital, which are technically and normatively dependent on DIRESA Callao. The BEPECA Health Network is a decentralized body of DIRESA Callao. It is responsible for conducting, organizing and managing health services, coordinating with other state sectors and local authorities. To fulfill this responsibility, it has 15 health establishments, organized in 4 micro-grids, on which health centers and posts depend. Main socio-economic problems The district of Callao has nearly half of the Economically Active Population (PEA) of the province, whilst a third corresponds to the population of Ventanilla (Table No 5). In the Province of Callao, out of 100 people of working age (from 14 up), 56 people are effectively active, either as employed or looking for occupation, with 53 people in paid employment. The other part of the population is unemployed or out of the labour force. 58 people out of 100 perform activities as an employee or worker in the private sector. 48 out of 100 people work in small production units.

Table No 5. PEA indicators in Callao districts, 2007

Description Province Bellavista Callao Carmen La La Ventanilla de la Perla Punta Legua Rate of activity or 55.7 52.9 55.3 56.3 53.8 52.0 57.8 economic participation Ratio 53.3 50.6 52.8 54.2 51.2 50.1 55.3 employment/population Rate of paid 58.2 63.4 59.1 59.1 64.3 56.0 53.6 employment Rate of self 47.9 37.0 47.5 47.1 36.2 28.6 54.8 employment or employment in MYPEs Unemployment rate 4.4 ------Vulnerable 19.6 10.2 19.2 22.2 10.3 6.0 24.9 employment rate % of people doing 25.7 24.1 26.15 10.8 23.6 18.0 26.2 homecaring

Crime and violence are a major social problem in the Province of Callao, the homicide rate reaches the highest level between 15-29 years of age (30.9 homicides per 100,000 inhabitants) and decreases quite rapidly in the older age groups. National indicators show homicide rates for the same age group of 9.3 homicides per 100 thousand inhabitants (approximately a third of Callao rates). By 2014, 30.6% of the population aged 15 and over in the Province of Callao were victims of some criminal offense, a figure reduced by 11.3 percentage points compared to 2011. In the period January - September 2015, this percentage reached 33.0%.

1.4 Socio-environmental Issues According to the environmental diagnosis of the Callao Environmental Planning and Assessment Plan – PLANEFA (2017), the main environmental problems in Callao are:  Urbanization processes and their impacts on the environment  Inadequate provision of basic sanitation services  Inadequate final disposal of solid waste  Conflicts arising from unclear environmental competences  Inadequate environmental habits of the population  Air and noise pollution  Contamination by lead and other heavy metals  Loss of natural ecosystems  Contamination of the Callao Bay

Some of these issues are driven by structural causes or environmental pressures (e.g. urbanization, inadequate habits, inadequate solid waste management), whilst others are environmental effects or impacts (loss of habitats, pollution, etc.). The most relevant to the project are described below. Noise pollution In Callao noise pollution occurs in different places with different intensities. Identified sources include industry, automotive traffic, air traffic, ambulatory commerce, construction. Industrial noise pollution varies considerably, depending on the type of industrial activity. This kind of noise, produced by machines of all kinds, increases parallel to the power of the machines. Higher noise levels are commonly caused by fans, steam pressure relief valves, or by stamping and riveting machines or tools. Industrial noise impacts employees within their working environment and has dramatic effects. This problem is mainly related to specific industries (textiles, metal-mechanics, packaging, etc.). Noise levels oscillate between 80 and 112 dB, with the lowest levels in the urbanizations Bocanegra, Grimanesa, Santa Beatriz, Marquez Oeste, and higher levels along the avenues: Nestor Gambetta, Argentina, Elmer Faucett, among others. Noise by vehicles is mainly produced by engines: the noise level of traffic is aggravated by the proportion of heavy vehicles which, together with mopeds, tend to produce a noise approximately two times more intense than that caused by cars. In automotive traffic, noise ranges from 70 to 140 dB. The main roads of Cercado del Callao have noise levels that exceed the limits allowed (between 72 to 74 DBA and 75 to 78 DBA), mainly due to vehicular congestion at peak times. Air traffic has also caused serious noise problems in the community. Jorge Chávez International Airport, aircraft traffic is responsible for the high noise levels affecting the population of the districts of Bellavista, Carmen de la Legua and surroundings: a Jet aircraft on average generates noise between 140 and 150 dB. Data for environmental noise reported by the Environmental Affairs Directorate of the Ministry of Transport for the buffer area around the airport, show daily values ranging from the lowest 52.4 dB(A) in the Juan XXIII Park to the highest 71.2 dB(A) in the Venezuela Avenue, close to an industrial area, and slightly lower values during night time (Table No.5). Noise levels are slightly higher than the national standards for the Gambetta area during the night (RA5, RA6, RA7, see Table No. 6). Noise levels are site-specific and appropriate measurements need to be taken in order to assess their incidence in the study area. Table No 6. Noise levels in the Callao province

Atmospheric emissions and air quality Pollution in Callao comes from two main sources: industry and motor vehicles. It is primarily associated with inefficient industrial processes and obsolete manufacturing technologies, as well as the informal and chaotic transport system, both for logistics and individual purposes. The type of fuel –dominantly dirty diesel- influences air quality. Air quality is influenced negatively by the scarcity of green areas, which reduces dust particle capture as well as the oxygenation potential provided by trees; and positively by the close presence of sea winds, which promotes pollutants dispersal. The distribution of pollutants in Callao responds to the south and southwest winds that disperse pollutants from the sea towards the continent (south-north direction); and the thermal inversion that makes contaminants dispersion towards the upper atmosphere more limited.

The quality of air in Callao is being deteriorated due to the growth, antiquity and lack of maintenance of the vehicle fleet. It is worth mentioning that progressively the automotive fleet is migrating to environmentally friendlier options such as the use of CNG and LPG. This change has generated the opening of 152 service stations and 219 authorized conversion workshops.

There is no air quality monitoring network which allows the consistent and permanent monitoring of air quality parameters. Measurements at the DIRESA 1 station in 2015 (the only monitoring point), show levels of PM10, SO2 and NOx below national standards; only PM2.5 is slightly higher than the national standard during the summer months (Table No.7). This pattern repeats itself for the specific measurements in 2016 and 2017 (MINSA, 2017).

Table N. 7. Monthly pollutants concentrations (2015). Estación D1 DIRESA Callao.

Air saturation studies carried out by DIGESA in 2000 and 2011, show that all parameters (SO2, NOx, PM10, ozone, bencene) are within the national air quality standards (ECAs) in Callao, but do exceed the WHO guidelines. An exception is PM2.5 which does exceed national ECAs (DIEGSA, 2012). Total Suspended Particle Levels (PTS) also exceed WHO ambient air quality standards (120 mg / m3) at all stations sampled, showing higher values during the winter period than in the summer.

The Ministry of Health mapped a number of critical points and their pollution sources (Table No. 8) and estimated the most exposed populations (Table No 9). Almost 200,000 people are estimated to be exposed to air pollution. Table No 8. Critical air pollution points in Callao

Point Risk to the population and the environment Av. Gambetta, Carretera Intensive light and heavy vehicular flow, generates Ventanilla emissions of particulate matter and gases Av. Faucett, Av. La Marina, Intensive light and moderately intensive heavy Av. Pacasmayo vehicular flow, generates emissions of particulate matter and gases Av. Argentina Intensive light vehicular flow, and moderate heavy vehicles generates emissions of particulate matter and gases Av. Colonial Intensive light vehicle flow

Table No 9. Potentially exposed populations to air pollution from industrial areas in Callao

Industrial Main Characteristics Nearby Exposed population area urbanizations (nr of inhabitants ) Oquendo It hosts various industries of AA.HH: Marquez, 18,000 industrial fiber, textiles, food, smelting, Oquendo, Santa zone fishing, chemical inputs, Beatriz, Faucett hydrocarbons. Possible emission of VOC particulate matter

Los It mainly hosts fishing industry, Urb. 200 Millas, 26,000 Ferroles pesticides, Arenado Faucett Industrial Zone Argentina It houses a variety of large and Urb. R. Castilla, 80,000 Industrial medium-sized industries Gambetta, Santa Area including: tire manufacturing, Cruz, Miguel Grau, food, grain storage, chemical Reynoso, Villa Sr. products, mattresses. Possible De los Milagros emissions of particulate matter and gases.

Bocanegra It has a diversity of industry Urb. 60,000 Industrial including plastics, food, Sesquicentenario, Area metallurgy, coffee processing. Aeropuerto, Possible generation of Bocanegra, Santa particulate matter and gases. Rosa

Lead Contamination Of all environmental problems of Callao, lead contamination is the most serious. It arises from the transport of mineral cargo from past decades, when no environmental controls were in place. Since 2014, the Consortium Transportadora Callao has put into operation the Mineral Conveyor Belt, thereby eliminating the transit of trucks transporting mineral cargo from deposits to the port of Callao, and reducing lead contamination. Studies carried out by DIGESA and the United States International Development Agency - USAID in 2009, showed high levels of lead in the children of Callao, especially in the Educational Institution "Maria Reiche" and the AAHH Puerto Nuevo, as well as nearby settlements such as Ciudadela Chalaca, Barrio Frigorífico, Chacaritas, San Juan Bosco and Annexes. Some estimates point to more than 200 hectares contaminated by lead throughout the province, which constitute an environmental liability yet to be addressed. River and sea pollution Monitoring for lead in the Rímac river, carried out by DIGESA from 2001-2010, show no presence of metals in the upper watershed and increasing levels in the medium and lower watershed, approaching the port: a number of monitoring sites exceed national river quality standards. In the lower basin, the river also receives inputs of solid waste from domestic and industrial sources, as well as construction residues and liquid discharges. The same situation applies to the marine coastal area, which also receives residues and effluents from port activities, including ballast waters. Industrial discharges from the fishing factories, chemical sites, food industry and others, create an intensive pressure on the quality of marine waters and ecosystems. The new Taboada treatment plant treats 14 m3/s of domestic sewage and has certainly improved the situation, but it does not provide a solution for industrial effluents. There is no specific information on industrial wastewater treatment facilities within individual companies located in the area. Solid waste management The Callao Province produces approximately 280,660 T/yr of domestic solid waste, with a per capita production of 0.62 kg/habitant/day (Table No10). Consistent volumes of hazardous solid waste from industrial origin are also produced (Table No11), however there is no updated registry of its production and management.

Table No10. Domestic solid waste production in Callao, 2016.

District Population Year 2016 2007 2016 Per capita Domestic production production (kg/hab/day) (ton/day ) Callao 415,888 406,760 0.718 292.05 Bellavista 75,163 71,859 0.670 48.15 C. de la Legua 41,863 40,765 0.540 22.01 La Perla 61,698 58,917 0.520 30.64 La Punta 4,370 3,270 0.690 2.26 Ventanilla 277,895 446,573 0.550 245.62 Total Provincial 876,877 1 028,144 0.615 640.73 Fuente: Estadisticas de Caracterización de los Residuos Sólidos Domiciliarios en la Provincia Constitucional del Callao 2013/ PIGARS 2013.

Table No11. Hazardous industrial waste production, 2007

Percentage Volume Type of waste T/year (%) Used oils 1700.70 2.77

Sand and slag 14863.40 24.18

Sawdust 108.60 0.18

Unused Batteries 2602.60 4.23

Plastics contaminated by chemical products 1135.90 1.85

Hazardous waste polluted cartons 892.50 1.45

Tóners and cartridges 3.10 0.01

Polluted metallic cylinders 1276.60 2.08

Filters and Fluorescents 100.80 0.16

Muds 7478.40 12.17

Rests of textiles polluted by solvents and adhesives 20102.90 32.70

Containers polluted by hazardous waste 1313.70 2.14

Rests of chemical products 9092.30 14.79

Other residues 796.90 1.30

TOTAL 61468.40 100.00

Fuente: Dirección de Asuntos Ambientales de Industria. Ministerio de la Producción 2008.

2. Policy, legal, and administrative framework

2.1 Policy Framework

 Política de Estado N° 19- Desarrollo Sostenible y Gestión Ambiental, 2004  Ley N° 27867 Ley orgánica de Gobiernos Regionales, su modificatoria Ley N° 27902. Diciembre 2002.  Ley General del Ambiente. N° 28611 / Junio 2005  D.S. N° 12-09-MINAM;Política Nacional del Ambiente en Perú; /2009  Decreto supremo N 011-2015-Minam; Plan estratégico de Cambio Climático; / 23-09- 2015  D.S. N° 011-2015-MINAM. Estrategia Nacional de Cambio Climático / 23-09-2015  R.M. N°161- 2016 – MINAM; Lineamientos de Crecimiento Verde/ 2016  D.S. N° 013-2015-produce; Plan Nacional de diversificación productiva /15-11-2014  Ley N°30078 Ley que promueve el desarrollo de parques industriales tecno ecológicos/21-08-2013

2.2 Legal and Administrative Framework

 Constitución Política del Perú; Art. 2do ; 1993  Ley N°27446; Sistema Nacional de Evaluación de Impacto Ambiental (SEIA) / 23 – 04- 2001  Ley N° 28245 Ley Marco del Sistema nacional de gestión Ambiental (SNGA) / 4 – 06 - 2004.  D.S. N°008-2005 - PCM ; Reglamento de la Ley Marco del SNGA. / 28 – 01 - 2005  Decreto legislativo N° 1013 Creación del Ministerio del Ambiente y del Organismo de Evaluación y Fiscalización Ambiental; / 13 -05- 2008  Ley N°29968; Ley de Creación del Senace/ 12-12- 2012  Ley N°29325; Ley de Sistema Nacional de Evaluación y Fiscalización Ambiental / 01- 03-2009  Ley N° 30011; Ley que modifica la ley 29325, Ley del Sistema Nacional de Evaluación y Fiscalización Ambiental./ 26-04-2013  Decreto Legislativo N° 1013 Ley de creación, organización y funciones del Ministerio del Ambiente, y del Organismo de Evaluación y Fiscalización Ambiental / 13-05-2005  Decreto legislativo N° 1039. Decreto que modifica disposiciones del Decreto legislativo 1013/ 25-06-2008  Decreto supremo N° 022-2009-MINAM, Reglamento de Organización y Funciones del Organismo de Evaluación y Fiscalización Ambiental /14-12-2009  Resolución Ministerial N° 268-2011- PRODUCE, que declara concluido en su totalidad el proceso de transferencia de funciones sectoriales al Gobierno Regional del Callao./22-09-2011  Resolución Ministerial N° 393-2003- PRODUCE a través del cual el vice ministerio de Pesquería delega en las direcciones regionales de producción la facultad de resolver procedimientos relacionados a la calificación de Declaración de Impacto Ambiental./ 17-10-2003  DS Nº 005-2017-MINAM. Aprueban Plan de acción para la implementación de las recomendaciones de la Evaluación de Desempeño Ambiental del Perú./ 21 – 06 - 2017

2.3 Laws, Regulations, Guidelines and Standards

 Ley N°27345 Law to Promote the Efficient Use of Energy / 05-09-2000  D. S. 087-2004-PCM Reglamento de Zonificación Ecológica y Económica 23-12-2004  Ley N° 28611: Ley General del Ambiente./ 13-10-2005  D.S. N° 44-98-PCM. Reglamento Nacional para la aprobación de los estándares de calidad ambiental y límites máximo permisibles. / 06-11-1998  Decreto Legislativo N° 757 Ley Marco para el crecimiento de la inversión privada./ 13- 11-1991  Decreto supremo N° 074 – 2001 – PCM Reglamento de estándares nacionales de calidad ambiental para aire/22-06-2001  Decreto Supremo N° 085 -2003 -PCM Reglamento de Estandares Nacionales de calidad ambiental para ruido / 30-10-2003.  D.S N° 003-2008- MINAM. Estándares de Calidad Ambiental para Aire/21-08-2008

 Decreto Supremo N° 069-2003-PCM "Establecen Valor Anual de Concentración de Plomo"./ 15-07 - 2003  D.S N° 047-2001-MTC, aprueba los Límites Máximos Permisibles de emisiones, para vehículos automotores que circulan en la red vial./ 30-10-2001  Decreto Supremo N° 062-2010-EM que aprueba los Límites Máximos Permisibles para las emisiones gaseosas y de partículas de las actividades de hidrocarburos./ 15-10-2010  Resolución Directoral N° 280-2007-MEM/AAM que aprueba la “Guía para la Evaluación de impactos en la calidad de aire para actividades minero -”/ 07-09-2007.  Resolución Ministerial N° 315-96-EM/VMM “Aprueba niveles máximos permisibles de elementos y compuestos presentes en emisiones gaseosas provenientes de las unidades minero metalúrgicas/.19-07-1996.  Decreto Supremo Nº 003-2002-PRODUCE “Aprueban Límites Máximos Permisibles y valores referenciales para las actividades industriales de cemento, cerveza, curtiembre, papel”./ 04 -10- 2002  DS Nº 017-2015-PRODUCE. Aprueban Reglamento de Gestión Ambiental de la Producción Manufacturera y Comercio Interno. Diario El Peruano,/ 06 -06- 2015.  RM Nº 435-2015-PRODUCE. Plan Estratégico Sectorial Multianual 2016-2021, PESEM./ 30-12-2015  Decreto Legislativo N° 1278 Nueva Ley de Gestión Integral de Residuos Sólidos / 23- 12-2016  Decreto Supremo N° 017-2015- PRODUCE Aprueban el Reglamento de Gestión Ambiental para la Industria Manufacturera y Comercio Interno/ 06-06-2015  Decreto supremo N° 015-2015-MINAM; Modifican los estándares de calidad Ambiental para agua y establecen disposiciones complementarias para su aplicación./ 19-12-2015  Decreto Supremo N° 004-2017-MINAM; Aprueban Estándares de calidad de agua y establecen disposiciones complementarias / 06-06-2017  Ordenanza Municipal N° 030-2016 ; Modifican la Ordenanza N° 000037, que aprobó la política Ambiental del Callao y crean el Sistema Local de Gestión Ambiental y la Comisión Ambiental Municipal del Callao / 25-11-2016  Ordenanza Nº 000021-2013- GORE Callao; Aprueban el “Plan Regional de Igualdad de Género 2013 – 2021 de la Región Callao / 17-12-2013  Ordenanza Nº 000003-2013; GORE -Callao; Aprueban el Plan de acción ambiental del callao 2013 – 2021/ 18-01-2013  Ordenanza municipal 018-2016 Aprueban el Plan de desarrollo Local Concertado de la Provincia Constitucional del Callao 2016 – 2021. /19-07-2016  Resolución de Alcaldia N° 131-2017-MPC – AL Aprueba el Plan Anual de Evaluación y Fiscalización Ambiental de la Municipalidad Provincial del Callao para el año 2017 / 07-02-2017  Resolución N° 000041-2015-GORE CALLAO .- PLANEFA 2015/ 05-01-2015  Decreto Regional N° 000003-2015-GOBIERNO REGIONAL DEL CALLAO .- Grupo Técnico Regional para la Prevención de la Contaminación por metales pesados en el distrito de Ventanilla/ 12-06-2015  Decreto Regional Nº 000010-2011/GORE CALLAO .- GRUPOS TÉCNICOS REGIONALES - CAR CALLAO./16-12-2011  Decreto de Consejo directivo N° 015-2001-CD/CONAM Creación de la Comisión Ambiental Regional Callao / 26-07-2001  Decreto Regional N° 000004 GORE Callao, Reglamento y Conformación de la comisión Ambiental Regional del Callao / 26-07-2011  Ordenanza Regional N° 008-2004 – Región Callao – CR; Crean el Sistema Regional de Gestión Ambiental / 19-05-2004  Decreto Regional N° 000007 GORE Callao crean Grupo Tecnico Regional de Cambio Climático y Diversidad Biológica del Callao, estableciéndose su finalidad, objetivos, funciones y las instituciones que lo integran/ 05-09-2011

2.4. Relevant international agreements

 Convention of the World Meteorological Organization (1950)  Convenio de Viena para la protección de la capa de Ozono (1985)  Protocolo de Montreal relativo a sustancias agotadoras de la capa de Ozono (1967)  Convenio Macro de las Naciones Unidas sobre Cambio Climático (1992)  Convención de las Naciones Unidas de Lucha contra la Desertificación en los Países afectados por Sequía Grave o desertificación (1994)  Protocolo de Kyoto de la Convención Marco de las Naciones Unidas sobre cambio Climático (1997)  Acuerdo de París sobre el clima (COP21) (2015).  Convenio de Minamata (2013).  Convenio de Basilea sobre Movimientos Transfronterizos y Eliminación de los Desechos Peligrosos, de la Organización de las Naciones Unidas (ONU) (1989)  Convenio de Estocolmo sobre contaminantes orgánicos persistentes (2001)  Convenio de Rotterdam (2005)

3. Environmental and social impacts

3.1 Positive environmental and social impacts

The project will generate the following benefits:

 The use of low-carbon technologies and the implementation of preventive energy efficiency measures in production processes in IZ companies will significantly reduce energy consumption. Direct benefits include lower consumption of fuels, including dirty diesel and, indirectly, improved air quality.

 The substitution of toxic chemicals and optimized processing through training and improved business models on chemicals management will have a positive effect on the health of the workforce, and help ensure better working conditions. It will also contribute to a reduction in hazardous waste production and will indirectly benefit ecosystem health and quality.

 Reduction of air emissions through optimized processes will contribute to an improvement in environmental (air) quality, thus improving the health conditions of local populations.

 The reduction of volumes of hazardous and other industrial waste, as well as the reduction of soil, water, air pollution through improvement in waste and wastewater management and disposal practices by the Callao companies, will contribute to reduce environmental pressures on local and regional ecosystems and habitats.

 Promoting clean and low-carbon technologies will furthermore facilitate the creation of a market for these products and multiply their economic and environmental benefits resulting in generation of livelihood, special expertise and health benefits.

 Inclusive socio-economic projects and other investments will improve local services, increase standards of living of the surrounding area and improve relationships with local populations.

 Future management of the industrial zone, according to sustainability criteria, will improve companies´ reputation and their relationship with different stakeholders, including local and national authorities, local population, shareholders and investors. It will also contribute to an increase in the economic value of industrial land in Callao and surrounding areas.

 The employees of the participating companies will benefit from access to capacity building trainings, and improved working conditions, including improved gender equality, health and safety. Their community will have access to cleaner air and less pollution from solid wastes, resulting in a better quality of life. Additionally, through community outreach initiatives, the local community will be able to interact and engage with companies in the industrial zone and jointly develop solutions to societal- and environmental-problems.

 The local, regional, and national government agencies will benefit from streamlined and optimised policy frameworks to support sustainable industrial zone development. They will gain access to capacity building trainings, lessons learned from international good practices and new tools (such as risk assessment and evaluation tools for monitoring company performance). Additionally, the government will benefit from strengthened stakeholder collaboration (public-private) and increased compliance with national regulations on behalf of companies.

 The results of the project, in terms of reductions in GHG emissions and effective policy development will feed into UNIDO's global knowledge pool, to enable replication first within Peru and then in other countries. By scaling-up and mainstreaming this approach, the project will trigger wider adoption of clean and low-carbon technologies, translating into greater reductions in GHG emissions.

In general, the main economic benefits are increased productivity and cost savings due to reductions in waste disposal, resource and energy consumption and increased competitiveness. Improving IZ operations through resource-efficient and cleaner production, companies in Callao will improve their competitiveness. This means that these companies will appear more successful in both national and international markets, with supplier companies also benefiting. Optimized IZ companies will also be more attractive, a consequence of which will be the attraction of a better-qualified workforce and, in particular, international investors.

Development of a governance structure, to be implemented by the Technical Unit in Callao would increase collaboration and trust between key stakeholders (e.g. industries, local and regional authorities, national government agencies, local community). These collaborations will be the basis to work more constructively towards effective risk management, knowledge sharing, maintenance management, improved planning of industrial activities, identification and implementation of cleaner production and industrial synergies, and tailored training and awareness raising efforts in Callao.

3.2 Adverse socio-environmental impacts

Activities that may affect the environment during the organization and implementation of the sustainable industrial zone of the Constitutional province of Callao were identified (Table No 12). After selecting the main environmental factors to be considered (Table 13), a cause-effect matrix was prepared (Table 14).

Table No. 12. Main project activities and their environmental effects

Implementation Phase Operational Phase Closing Phase Machinery movement Increased transit of heavy Generation of demolition Transit of heavy vehicles and vehicles waste transport of materials Physical presence of the Unemployment Implementation of small enterprise Cessation of activities works Productive process: Generation of demolition and technological or process construction waste adaptation/optimization Generation of solid waste, inc. hazardous residues Generation of liquid effluents Generation of gaseous emissions Extraction of groundwater

Table No 13. Environmental factors

Physical Environment Biological Environment Superficial waters Flora Soil and subsoil Fauna

Air Noise level Anthropic environment Other factors Population Landscape Economy Social Perception Infrastructure Occupational health

Table No14. Interaction Matrix (Project Activities vs Environmental Factors)

Environmental Factors Impacting Activities in the implementation phase Increase in Increase in Small Demolition and Heavy Load Heavy Load works construction Vehicles Vehicles work waste Transit Transit and Materials/eq uipment Transport Physical Superficial waters X Environment Soil and subsoil X X X Air X X X X Noise levels X X Biological Fauna X Environment Flora X Anthropic Population X X X Environment Economy X X X Infrastructure X X Other factors Landscape X X Social Perception X X X X Occupational X X X health

Environmental Factors Impacting Activities in the implementation phase Impact Impact Positive Negative/ Direct/ Indirect Significance Physical Superficial and Alteration in Negative / Low Direct Environment subterranean quality and Importance waters quantity Soil and subsoil Alteration in Negative / Medium Direct quality Importance Air Alteration in Negative / Medium Direct and indirect quality Importance Noise Increase in noise Negative / Medium Direct and indirect levels Importance Biological Fauna Avifauna Negative / No Direct Environment alteration importance Flora Change in Green Negative / No Direct areas importance Anthropic Population Change in transit Negative / Low Indirect Environment flows; Importance Increase in local migrations Economy Employment Positive Indirect Generation Increase in commerce and services Infrastructure Increase in big Negative / No Direct and indirect scale importance infrastructure Other factors Landscape Landscape Negative / No Indirect changes importance Social Perception Risk in Negative / No Indirect expectations of importance relocation and employment generation Occupational Increased risk of Negative /Medium Direct health occupational importance related diseases

Environmental Factors Impacting activities in the Operational Phase Equi Physic Product Solid Liquid Air Subterr pmen al ive waste dischar emission anean t and Presen process producti ges s water mach ce of on (sewage extracti inery Compa ) on move ny ment s Physical Superficia X X X X Environment l and subterrane an waters Soil and X X X X subsoil Air X X X X Noise X X levels Biological Flora X X X Environment Fauna X X X Anthropic Populatio X X Environment n Economy X X Infrastruct X X ure Other factors Landscape X X X X X Social X X X X X perception Occupatio X X X X X X n health

Environmental Factors Impacting activities in the Operation Phase Impact Condition Impact Positive/Negative Direct / Significance Indirect Physical Superficial and Changes in quality Negative / Low Direct Environment subterranean waters and quantity Importance Soil and subsoil Quality changes Negative / Low Direct Importance Air Increase in noise Negative / Low Direct e levels Importance indirect Noise levels Quality changes Increase in the level Direct e of noise indirect Biological Fauna Changes in avifauna Negative / No Direct Environment importance Flora Green áreas changes Negative / No Direct importance Anthropic Population Vehicular flow Negative / Low Indirect Environment changes Importance Increase in local migrations Economy Employment Negative / Low Indirect generation Importance Increase in commerce and services Infrastructure Increase in big scale Negative / Low Direct & infrastructures Importance indirect Other factors Landscape Landscape alterations Negative / Low Indirect Importance Social Perception Risks related to Negative / Low Indirect relocation Importance expectations and employment generation Occupational health Changes in industrial Negative/ Medium Direct workers health importance Potential adverse impacts of the project include:  Increase in noise levels  Air pollution  Changes in soil quality  Production of solid waste, including chemical waste  Changes in local landscape. The section below identifies the main mitigation measures suggested for each impact. These measures are general, as project and site specific actions will have to be defined according to the particular industrial conversion project that will be implemented. If major process changes will be implemented, or major technological investments will be carried out, the company will have to update the relevant applicable environmental instrument (DIA, EIA, PAMA, PMA) according to national regulations. This implies identifying and applying appropriate environmental and social prevention and mitigation measures in order to minimize impacts, as well as monitoring their performance.

3.3 Mitigation Measures Most mitigation measures are related to preventing or reducing environmental risks within manufacturing processes and will therefore have to be carried out by individual companies. The table below lists the general actions that need to be taken. A project specific environmental and social management assessment and plan will have to be carried out during project implementation at each manufacturing site where pilot demonstration projects will be implemented. Table No. 15. Main mitigation measures for identified impacts

Impact Mitigation measure Mitigation Responsibility Timeline Cost Technology/ Procedure Generation of Perform preventive and periodic Routine Companies The N.D noise maintenance to the machinery and preventive control entire equipment used in order to ensure its and safety Project good condition by controlling its procedure guide life noise level through Reviews Techniques. Prohibit the unnecessary use of sirens or other sources of noise, with the aim of preventing increase of noise levels

Generation of Establish operational controls Routine Companies The N.D gases (periodic technical revisions) to preventive control entire ensure that sources do not emit and safety Project combustion gases that raise procedure guide life concentration of pollutants in the air above RCTs. Perform preventive and periodic maintenance of the machinery and equipment to be used to ensure their good condition and reduce emissions. Transport the removed or construction material safely, Protect with a cover or canvas that limits and controls emissions of dust. Moisten the work area when necessary to avoid possible dust generation as a result of the movement of machinery

Changes in Soil Ensure that no fuel handling and Routine Companies The N.D quality lubricating manoeuvres are preventive control entire performed in the area when these and safety Project can be performed in facilities near procedure guide life the project. In case it is necessary to refuel a minor equipment (for example, a roller), protective measures must be applied to avoid environmental accidents through the use of metal or plastic trays. Develop a Contingency protocol to deal with possible spills. Additionally, maintain appropriate fire extinguishers in the work area. Maintenance and repair of vehicles and equipment with internal combustion engines shall be carried out outside the work area, in duly authorized workshops.

Solid waste Implement a recycling program and Management plan Companies The N-D generation optimize use of materials and sub- entire products Project Promote the valorization and life commercialization of solid waste Landscape Limit activities to the industrial zone Management plan Local and The N.D and respect urban parameters national entire government Project life N.D. Not defined, An assessment of cost can only be done with detailed manufacturing process information related to volumes and types of materials, emissions, waste, effluents to be managed

3.4 Environmental and social sustainability monitoring As baseline environmental quality information is very limited for Callao, it is suggested that the project strengthen national capacities for environmental data collection during its implementation. This would allow to estimate the real extent and gravity of environmental problems and would support the deployment of the provincial and district governments´ resources for improving local environmental monitoring and management. It would also be useful to carry out a Comparative Risk Assessment (CRA) such as the Ecorisk assessment developed in the early 1990´s for the area, in order to quantify health risks related to pollution and their impact on economic activities. Alliance with the Ministry of Health through the local DIRESA and a national NGO/University would provide the scientific knowledge for its deployment. Such studies would be the basis for improving the quality of the environmental instruments designed by the district and provincial environmental management Directions of Callao (Agenda Ambiental, PLANEFA) which suffer from loss of legitimacy because of their poor design and implementation. A basic environmental monitoring scheme could also be carried out during project implementation for the general area and for specific companies (Table No. 15 and 16). In order to improve environmental quality and aesthetic characteristics of the area, it is also suggested that a vegetation and green areas plan de designed for the IZ and its surrounding areas. Its development should be carried out by the Callao district and provincial governments, in collaboration with local companies, including the airport and port concessionaries. Main responsibility for the actions proposed lies with the PMU, in collaboration with national Executing Partners.

Table No 15. Environmental Monitoring Scheme Environmental Monitoring Frequency Main concept aspects Location

Air Quality: dust Site and access road Biannually Sample taking and analyses Air Quality: PM 10 Site and access road Biannually Sample taking and analyses & PM 2.5 Noise Site and access road Monthly Monitoring costs TOTAL

Table No 16. Companies´ site specific measures Waste and Site Quarterly Preparation and submission of Hazardous Waste generation report (each company) Management Traffic Management Access road Quarterly Training on traffic management and transit for industry personnel Solid Waste disposal Site Biannually Supervision and surveillance of adequate disposal Emergency Site Monthly Preventive training for industries monitoring personnel Social/labor Site Biannually Induction training within recruitment industries

3.5 Capacity Development and Stakeholder Engagement Stakeholder Engagement The Stakeholder Engagement Strategy encompasses the development of activities with the purpose of establishing a fluent communication with stakeholders, in order to motivate their participation by expressing their perceptions and providing recommendations on project activities.

The dimension of the project implies a medium level of exposure that requires a communication strategy in order to avoid and manage conflicts with stakeholders. On the other hand, the great diversity of interest groups involved demands differentiated relationship strategies, as these include neighborhood groups, NGOs, producers associations, unions, national and local government organizations.

The objective of the public consultation is to ensure access to project information to the population in the direct and indirect area of influence of the project through a clear, precise and transparent communication; generate dialogue with different stakeholders; register and analyze social complaints and demands, if they arise, and provide appropriate answers or solutions.

Foreseen activities include:  A communication strategy will be developed for large stakeholders, organizations and public and private institutions with interest in the project.  A permanent information module to be installed where the population can access information material about the project, possibly the local Municipality and other focal points.  Dialogue through informative talks directed to different interest groups.

Capacity Building An integral part of this project is capacity building for national policy makers in PRODUCE and other government institutions to facilitate substantive and comprehensive planning of sustainable industrial zones, focusing on brown field operations. Public officers from national, regional and municipal governments will have the means to support and implement plans for sustainable industrial zones, with a focus on SME. Personnel from PRODUCE, MINAM, MEF and MINEM, and other institutions including the private sector (SNI, CONFIEP Chambers of Commerce, etc.) will be invited. This outcome will also result in increased market demand through increased awareness and know-how among industrial business on low-carbon and cleaner production technologies, including their potential for increasing productivity, resource- efficiency and cost reduction which can translate into increased profitability and competitiveness.

The training modules will address the 6 key components of SIZ: 1) sustainable industrial zones and parks management, (2) company level resource efficiency and cleaner production, (3) industrial symbiosis and synergies, (4) integration with local community and natural environment, (5) spatial planning and zoning, and (6) collective park and zone level infrastructure and utility services.

Capacity building further extends to the supply chain for RECP methodologies and SAICM by raising the skills and competence of practitioners and increasing the number of service suppliers in these fields. A national database of qualified RECP professionals will be delivered to increase industry confidence in the quality of the RECP services supplied. Partnerships with relevant stakeholders such as NGOs, Grupo GEA-CER (National Cleaner Production Centre of Peru) and industry associations will be established, not only to act as a host for the training Programme, but also as part of an effort to institutionalize training curricula as part of the Project’s exit strategy. Grupo GEA-CER will engage relevant universities (the Catholic University of Peru (PUCP), the National University of Engineering (UNI), the National University of Callao.) to deliver training modules in line with UNIDO methodologies.

Following UNIDO’s RECP methodology, it is planned to deliver three main training modules and adapt these to meet local conditions: (a) Training in clean and low carbon technology assessments to be developed with the participation of local technology providers; (b) Train-the- trainer courses on resource efficient and cleaner production; (c) Training of service suppliers on the application of industrial clean development methodologies (ISO, HACCP, SAICM).

3.6 Implementation of the ESMP Implementation of the ESMP will require the commitment of the PMU as well as specialized personnel and equipment such as:

- Technical monitoring staff - Social communication experts

Their first task should be the development of a detailed planning of environmental monitoring activities. An overview of the measures suggested above is provided in Table 17.

Table No 17. Main environmental actions suggested for the PMU

Action Main purpose Main partner Time Environmental Improve the quality of Callao district and 6 months baseline study information available provincial government on the environmental situation of Callao Comparative Assess and quantify Ministry of Health 4 months risk assessment socio-economic Callao district and impacts of provincial government environmental pollution problems and climate change risks Local and Improve effectiveness Callao district and 12 months provincial and legitimacy of provincial government government environmental Ministry of Production environmental management Ministry of Environment plans and tools instruments Project Implement a basic Callao district and Throughout project environmental environmental provincial government implementation (4 monitoring monitoring scheme years) for the project Awareness Deliver training Callao district and Throughout project raising and modules on resource provincial government implementation capacity efficient and cleaner Ministry of Production building production, clean and low-carbon technologies TOTAL *Activities will be implemented by the PMU, in close collaboration with national partners

References CER-Grupo GEA, 2015. Parque industrial ecoeficiente del Callao. Ed. CER-Grupo GEA. Lima, Perú. Gobierno Regional del Callao, GORE Callao. 2011. Plan de Desarrollo Concertado del Callao 2011-2021. Acuerdo de Consejo Regional Nº 062-2010. Gobierno Regional del Callao, GORE Callao. 2013. Aprueban Plan de Acción Ambiental del Callao 2013-2021. Ordenanza Nº 000003-2013. Grupo GEA, 2010. Informe GEO Lima y Callao. Ed Grupo GEA, Universidad Científica del Sur. Lima, Perú DIGESA, 2012. Estudio de saturación del aire de Lima y Callao 2011. http://www.digesa.minsa.gob.pe/depa/informes_tecnicos/Estudio%20de%20Saturacion%20201 2.pdf

Municipalidad Provincial del Callao. Plan Anual de Evaluación y Fiscalización Ambiental del Callao 2017. http://www.regioncallao.gob.pe/contenidos/contenidosGRC/filesContenido/file57864.pdf

Municipalidad Provincial del Callao. Plan de desarrollo urbano de la Provincia Constitucional del Callao 2011- 2022 http://www.municallao.gob.pe/index.php/planos-y-zonificacion

Gobierno Regional del Callao. Microzonificación Ecológica y Económica de la Región Callao. http://www.municallao.gob.pe/contenidosMPC/downloads/flash/animacion_region/Mapas/Mze e/Estudio/CAPITULO%20I.pdf

Dirección General de Salud Ambiental, Programa Nacional de vigilancia sanitaria de calidad del aire http://www.digesa.minsa.gob.pe/DEPA/aire_lc/lima_callao.asp

OEFA: Informe de mediciones de ruido ambiental en los seis (06) distritos que conforman la provincia constitucional del Callao. http://sinia.minam.gob.pe/documentos/informe-ruido- ambiental-distritos-callao-2015