The World Bank Serbia Railway Sector Modernization (P170868) Public Disclosure Authorized
For Official Use Only
Public Disclosure Authorized Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage)
Date Prepared/Updated: 11/02/2020 | Report No: ESRSA01081 Public Disclosure Public Public Disclosure Authorized Public Disclosure Authorized
Nov 02, 2020 Page 1 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
BASIC INFORMATION
A. Basic Project Data
Country Region Project ID Parent Project ID (if any)
Serbia EUROPE AND CENTRAL ASIA P170868
Project Name Serbia Railway Sector Modernization
Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date
Transport Investment Project 10/15/2020 1/28/2021 Financing For Official Use Only Borrower(s) Implementing Agency(ies)
Ministry of Finance Ministry of Construction, Infrastructure, and Transport, Serbia Railways Infrastructure
Proposed Development Objective MPA Program Development Objective: To improve the efficiency and safety of Serbia’s rail network and enhance the environmental sustainability of Serbia’s transport system. Public Disclosure Public Phase 1 Project Development Objective: To enhance the efficiency and safety of existing railway assets and improve governance and institutional capacity of the railway sector.
Financing (in USD Million) Amount
Total Project Cost 400.00
B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No
C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] 1. Phase 1 will focus on upgrading existing rail infrastructure and establishing the enabling environment for further corporatization of the railway companies and operationalization of sector reforms. This will be achieved through implementation of the following three components:
Nov 02, 2020 Page 2 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
1. Component 1. Infrastructure Investments and Asset Management (US$ 106.1) 2. Component 2. Institutional Strengthening and Project Management (US$ 9.5) 3. Component 3. Railway Modernization Enablers (US$ 9.4)
Component 1: Infrastructure Investments and Asset Management
2. This component focuses on improving the quality and safety of railway infrastructure and enhancing rail asset management practices. The quality of the railway network will be improved through targeted renewal interventions and preparation of technical documentation for the next phases of the Program. Railway safety will be improved through track renewal and also through upgrading of railway crossings throughout Serbia. To ensure the long-term sustainability of the GoS’s ambitious railway investment plan and to provide for systematic, transparent, and objective planning of investments in infrastructure maintenance and rehabilitation, the component will finance the introduction Asset Management Systems (including the capability to carry out LCC analyses). Accordingly, the For Official Use Only component will be implemented through the following subcomponents: (i) Subcomponent 1.1 Reliable and Safe Railway Infrastructure (US$ 96.8): This subcomponent will support IZS in carrying out a program of track renewal and safety interventions to restore service performance. The specific sections and components in each track segment have been selected from the National Program based on strategic importance, LCC analysis, and readiness for implementation. The investments will include renewal of critically important lines and tunnels in Belgrade city center, construction of the second stage of the main railway station in Belgrade center, installation of four wayside measurement stations, improvement of about 150 railway level crossings around the country, and establishment of the Level Crossing Safety Improvement Program. (ii) Subcomponent 1.2 Technical Documentation (US$ 4.1 million): This subcomponent will support preparatory technical work to ensure the readiness of the infrastructure investment pipeline for subsequent phases of the MPA, and, as such, increase the absorption capacity of IZS. Activities to be financed will include feasibility studies and/or preliminary designs, detailed designs, environmental management plans and environmental impact assessments, and
Public Disclosure Public resettlement plans if needed. (iii) Subcomponent 1.3 Asset Management (US$ 5.2 million): This subcomponent will support the adoption of specialized Railway Infrastructure Asset Management System encompassing the functionalities of the LCC analysis, cost-benefit, Failure Mode Effects and Criticality Analysis (FMECA) and Reliability, Availability, Maintainability, and Safety (RAMS) as IZS’s standard tool for planning and decision making for financing activities. Additionally, this subcomponent will include technical assistance to develop Railway Infrastructure Implementation Plans aiming at rationalizing the scheduling of railway improvements in such a way as to minimize delays and uncertainties for cargo and passenger operations as works are implemented.
Component 2: Institutional Strengthening and Project Management (US$ 9.5 million)
The component focuses on strengthening rail policies and institutions to deepen and sustain recent reforms. The activities will support GoS’s effort in continuing the sectoral reforms through institutional capacity building and the introduction of modern management systems and approaches, especially those that will promote more efficient, transparent, customer-responsive and commercially oriented ways of operating. To this end, the component will finance the following subcomponents: (i) Subcomponent 2.1 Sectoral Governance (US$ 4 million): This subcomponent will provide a mix of technical assistance and investments to strengthen the governance of the key railway agencies and improve their efficiency and results. Special focus will be on empowering RD to fulfill its role as a main driver of railway sector modernization.
Nov 02, 2020 Page 3 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
Furthermore, this subcomponent will provide support to IZS, SC and SV to adopt commercially oriented, independent management and modernize their outdated internal structures and systems through wider adoption of ICT technologies and introduction of business support systems, asset management systems, financial reporting systems, and document management systems. The subcomponent will assist in completing the network of contractual relationships between railway companies (“joined-up environment”) by developing and implementing a “statement of requirements”. (ii) Subcomponent 2.2 Human Capital (US$ 2.8 million): This subcomponent will finance a mix of technical assistance and capacity building activities to establish mechanisms and frameworks for long term development of human resources and knowledge sharing in the sector. The goal is to develop capacities and a pipeline of skilled staff in IZS, SC, and SV to increase the rate of investments, modernize operations, improve asset management, operate services that appeal to the market, and increase IT adoption, and to raise a profile of rail profession in academia by creating a first female cohort of researchers teaching subjects related to rail in the country. To ensure sustainability and reach of human capital development, the interventions will extend beyond internal measures with a focus on the For Official Use Only three key areas: (i) development and implementation of robust HR systems, HR strategies, and knowledge curricula with corresponding Gender Action Plans (GAPs) in each company; (ii) design of educational, training and retraining programs in cooperation with vocational schools and universities; and (iii) establishment of railway PhD program for women. (iii) Subcomponent 2.3. Project Management and Citizen Engagement (US$ 2.7 million): This subcomponent is designed to provide strong project management and ensure transparency and accountability of the project’s interventions and results. It will finance: (i) staff and technical support for the Project Implementation Unit (PIU) in the MCTI and the Project Implementation Teams (PITs) in RD, IZS, SC, and SV; (ii) training and knowledge exchange; (iii) communication and citizen engagement activities; (iv) Infrastructure works management plans; (v) office equipment; and (vi) operating costs. Collection of user feedback about railway services will be done through public and multi-stakeholder consultations and gender disaggregated citizen engagement surveys.
Public Disclosure Public Component 3: Railway Modernization Enablers (US$ 9.4 million)
3. This component will finance measures to protect the vulnerable and poor and strengthen sectoral enablers for sustainable business growth and job creation. The focus will be on utilization of information technologies in railway transport, which is currently still in its infancy, and on deepening knowledge of market potentials and developing strategies for attracting unconventional users. Through a mix of technical assistance and pilot investments, the following three enabling elements will be supported: (i) Subcomponent 3.1 Intelligent Railway Systems and SMS (US$ 5.8 million): This subcomponent will support (i) the initiation of structured planning of IRS and (ii) the introduction of SMS in the railway sector. Technical assistance will be provided to help Serbian sector institutions to implement the ERTMS and deliver an implementation plan for IRS. To provide the opportunity for IZS technical staff to obtain experience in the selected IRS applications and the installation and operation of ERTMS, a demonstration project on one of the regional lines will be carried out. In addition, the subcomponent will finance set of activities that should set the foundations for full implementation of the SMS approach, in particular: (i) preparation of an SMS action plan; (ii) development of a railway network resilience and investment plan; (iii) selected SMS and resilience interventions; (iv) monitoring and safety equipment for IZS; (v) risk management plans and early warning systems to respond to natural disasters and pandemics more effectively; and (vi) necessary supervision. The latter should identify short term investments needed to respond to COVID-19 operating conditions such as social distancing in trains and stations, staffing safety and health measures, and adequate service design during a pandemic emergency.
Nov 02, 2020 Page 4 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
(ii) Subcomponent 3.2 Integrated Territorial Development (US$ 2.9 million): The goal of integrated territorial development (ITD) in the sector context is to attract new users to railways by providing better connectivity to and synchronization with other transport modes and improved accessibility of the train terminals. The activity requires public sector involvement through regulatory changes, incentives, and a proper public relations effort. This subcomponent will finance a comprehensive study to allow GoS and IZS to understand how railway services could attract more users through better integration with the existing and future urban landscape. The study will identify and prioritize short to long term investments, including smaller interventions that will be financed through selected pilot projects in this Phase 1 operation as well as more complex projects to be implemented in the next phases of the MPA. (iii) Subcomponent 3.3 Modal shift (US$ 0.7 million): This subcomponent will support essential first steps toward shifting traffic toward the railways as a greener and more affordable transport mode. To this end, a study will be financed to assess opportunities for increasing railway market share, including the potentials for attracting additional traffic, social implications, and impact on environmental footprint. In addition, this subcomponent will finance an analysis of the ownership alternatives for SC (SOE vs. privatization) and establish a roadmap for implementation of For Official Use Only the selected approaches.
D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] This ESRS covers phase 1 of the National Railways Program - the Project. Phase 1, the Project, has three components. Component 1: Infrastructure Investments and Asset Management focuses on improving the quality and safety of railway infrastructure and enhancing rail asset management practices through a series of infrastructure investments aimed at improving overall service quality as well as safety, including reconstruction and rehabilitation of tracks, rehabilitation of tunnels, replacement of switches, works on auxiliary infrastructure (e.g. station buildings), rehabilitation and safety upgrade of railway signs, and supporting railway infrastructure. Component 2: Institutional Public Disclosure Public Strengthening and Project Management focuses on strengthening rail policies and institutions to deepen and sustain recent reforms mainly through institutional capacity building and the introduction of modern management systems and approaches. Component 3: Railway Modernization Enablers will finance measures to protect the vulnerable and poor and strengthen sectoral enablers for sustainable business growth and job creation through a mix of technical assistance and pilot investments. The Project will take place countrywide (from the northern Romania border all the way to the border with North Macedonia), mostly on the existing national railway network in Serbia, and its vicinity. The Project will not support any activity carrying high E&S risk. The specific sections and components selection in each track segment for renewal is based on Life Cycle Cost - LCC method which established a sound asset management system. These segments were identified by Serbian Railways Infrastructure - IZS in direct consultation with the Ministry of Construction, Transport, and Infrastructure - MoCTI and support from TU Graz and the World Bank. The proposed sub-projects are still not fully defined, while their tentative list includes: under the sub-component 1.1: program of track rehabilitation and safety interventions to restore service performance including, but not limited to: renewal of existing lines in Pancevo and Belgrade encompassing also tunnels, safety improvements at approximately 150 railway level crossings, construction of the Bogojevo bypass and Construction of stage 2 of the main railway station Belgrade Center (Prokop). Under the sub-component 3.1 the Project will initiate a mix of technical assistance and pilot investments in Intelligent Railway Systems and Safety Management Systems (SMS) using technology to improve energy efficiency and reduce emissions, prevent collisions, increase capacity and asset utilization, improve reliability and other elements of service quality. Sub-component 3.1 also finances preparation of an SMS action plan;
Nov 02, 2020 Page 5 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
development of a railway network resilience and investment plan; selected SMS and resilience interventions; monitoring and safety equipment for Serbia Railways Infrastructure (IZS); risk management plans and early warning systems to respond to natural disasters and pandemics more effectively. The latter should identify short term investments needed to respond to COVID-19 operating conditions such as social distancing in trains and stations, staffing safety and health measures, and adequate service design during a pandemic emergency. Most of the works will take place on the existing rail infrastructure, however, construction of smaller railway sections (e.g. by-passes) can be financed, provided that they do not entail activities with high E&S risk. A robust environmental and social screening will be conducted based on the procedures and guidelines provided in the ESMF to screen out high-risk activities. Some existing lines pass through protected areas/ecological networks, where the works will be kept under the existing footprint. Although the works will be performed on the railway track and the land section around the track, belonging, in the majority, to the IZS, minor land acquisition activities concentrated around agricultural land in rural areas are expected. France’s AFD (Agence Française de Développement) and possibly other IFOs are planning to co-finance support of the climate goals of the DPO and the Railway Sector Modernization Project. For Official Use Only Regardless of the financing source or supported undertaking, all Project activities will be implemented in line with the ESF and WB EHSG and the participating organizations will adopt ESF for managing activities under this Project. The project will benefit the population at large, in terms of better transportation of both goods and passengers. Poorer sections will benefit significantly as they are the biggest users of rail travel. Similarly, businesses will greatly benefit from better cargo transportation. The TA and improvement of the institutional structure of the Railways will also have a positive impact on its employees and contractors with regard to labor safety, standards, and grievance channels. Based on initial screening, vulnerable groups include: retired, elderly, and people with disabilities and chronic diseases; single-parent headed households, male and female; people with low literacy and ICT knowledge; economically marginalized and disadvantaged groups; persons living below the poverty line; Roma people; Ethnic minorities (e.g. Hungarians) and women. Since the Project is being implemented across the country the exact number of people within detected vulnerable groups is not known at this stage. However, the project will have no negative impact on vulnerable or excluded groups. Public Disclosure Public Under component 1 of this MPA, A significant part of the Serbian railway network will be renewed to their original specifications to restore quality service. Serbia's terrain ranges from fertile plains of northern Vojvodina to limestone ranges and basins in the east and ancient mountains and hills in the southeast. The north is dominated by the Danube River. The Morava River, a tributary of the Danube, flows through the more mountainous southern regions of Serbia. The terrain of central Serbia consists chiefly of hills and low to medium-high mountains, interspersed with numerous rivers and creeks. The main communication and development line stretch southeast of Belgrade towards Niš and Skopje (in North Macedonia), along the valley formed by the Great and South Morava rivers. Most major cities, as well as the main railroad and highway, are located on or around this line. To the east of this line, in an area that is relatively sparsely populated, the terrain rises to the limestone ranges of Stara Planina and the Serbian Carpathians. To the west, mountains slowly rise towards the southwest but do not form real ridges. Zlatibor and Kopaonik are the highest mountains in this area. Practically the entire territory (92%) of Serbia belongs to the Danube (Black Sea) drainage basin. The Danube flows 588 km through Serbia or as a border river (with Croatia in the northwest and Romania in the southeast). Other chief rivers in Serbia are tributaries of the Danube including the Sava (flowing from the west), Tisa (flowing from the north), Drina (flowing from the south, forming a natural border with Bosnia and Herzegovina), and Morava. Only the Morava flows nearly entirely through Serbia. Their tributaries form a dense network of smaller rivers and creeks that cover most of the country.
Nov 02, 2020 Page 6 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
The diverse landscape, climate, and hydrography create very rich ecosystem diversity. Five of 12 world biomes and of six Europe's biomes are represented in Serbia. Its territory also represents a significant center of diversity of endemic flora of the Balkan Peninsula. The total area protected is about 6.6 % of the country, including 4 National Parks, 11 parks of nature, and 7 Nature reserves. Serbia is rich in cultural heritage; The Central Register of Immovable Physical Culture of the Ministry of Culture lists 2,306 total cultural heritage including 2,023 cultural monuments, 66 cultural and historical entities, 151 archeological deposit, and 66 significant locations. Natural and cultural patrimony under international protection are eight Ramsar sites, one Biosphere reserve, many Important Bird Areas, Important Plant Areas, and Prime Butterfly Areas (IBA, IPA, and PBA), and seven UNESCO World Heritage cultural and natural sites.
D. 2. Borrower’s Institutional Capacity For Official Use Only There is a sectoral experience of working with the World Bank, but none in Safeguards or ESF. Since 2015, the Government of Serbia (GoS), closely supported by the World Bank and EU, implemented an EU-compliant railway reform. GoS transformed its vertically integrated railway (JSC Serbian Railways) into three operational companies – IZS, Serbia Voz, and Serbia Cargo. Under the current structure, the Ministry of Construction, Transport, and Infrastructure (MCTI) is responsible for policy; while the Serbian Railways Infrastructure, as an infrastructure manager, is responsible for construction, maintenance, operation, and management of the railway network; Serbia Voz is responsible for Passenger transport, and Serbia Cargo is responsible for cargo transport. The institutional structure for the sector is complemented with the Railways Directorate (‘RD’), as the railway safety and economic regulatory body. These WB supported reforms have placed the railway sector in line with the EU’s Acquis Communautaire and introduced the legal framework to drive for higher efficiencies by establishing contracts among the railway companies. The overall Project implementation responsibility lies with the MoCTI, while the activities will be implemented by the
Public Disclosure Public aforementioned state-owned companies: Serbia Cargo (SC), Serbia Voz (SV), and Serbian Railways Infrastructure (IZS). Neither of the companies has an Environmental Department or designated environmental staff. Social issues such as citizen engagement or labor-management are managed ad hoc on a case to case basis but in line with Serbia legal framework. Grievances can be filled but are not handled systematically, thus the Grievance system will need to be strengthened. Land acquisition is being managed by the legal department in IZS in cooperation with local authorities according to Serbian national policies. The infrastructure and the transport companies have closely worked with the World Bank-supported TA but there is no experience with investment operation from the World Bank, nor with the ESF. Project management responsibilities will be assumed by the existing PIU for the WB supported project Trade and Transport Facilitation in Serbia. Due to a lack of capacity for environmental and social management, the PIU will be supported by a full-time Environmental Specialist, a full-time Social Specialist, and a full-time Occupational Health and Safety (OHS) Specialist throughout project implementation. The World Bank Environmental and Social Specialists will also implement a capacity building program for the PIU (OHS, Environmental and Social Specialist within the PIU) regarding the implementation/preparation of SEP, RPF, RPs, ESMF, and ESMPs/ESMP Checklists and all other relevant topics. The training program will be conducted throughout the project implementation. Furthermore, the PIU will provide training for the contractors on the implementation of environmental and social due diligence documents prior to works.
Nov 02, 2020 Page 7 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
Serbia achieved various levels of progress in the approximation of its regulatory framework to EU Acquis in environmental protection. In the area of horizontal legislation (e.g. transposed EIA Directive), Serbia has achieved a high level of alignment with the EU acquis as well as in the management of waste (except hazardous and medical waste), energy efficiency, and noise. The level of alignment with the acquis in the field of nature protection, in particular the Habitats and Birds Directive, is moderate. However, the implementation for most of the aligned sectoral regulation is at an early stage.
II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS
A. Environmental and Social Risk Classification (ESRC) Substantial
Environmental Risk Rating Substantial For Official Use Only The project has substantial environmental risk as works planned under Component 1 and Component 3 are expected to be mostly temporary, localized, predictable, moderate in magnitude, and reversible, but are able to produce some significant impacts on the environment and human health. Adhering to mitigation measures is likely to prevent these adverse impacts from taking place. Under sub-component 1.1 the Project will carry out a program of track rehabilitation, construction, and safety interventions to enhance and restore service performance including, but not limited to: installation of measurement stations; renewal of existing lines in Pancevo and Belgrade; installation of measurement stations/defect detectors and approximately 150 railway level crossings; construction of the 2nd phase of Belgrade passengers train station Prokop (including reconstruction of existing lines, the first and second track with associated catenary network and platforms, walls and installations e.g. passenger walkways); installation of auxiliary infrastructure and equipment (escalators, lifts, etc.); and construction of access roads, but no works on supporting (load-bearing) structure, which will be finished by the Project start. Under the sub-component 3.1 the Project will initiate the structured planning of Public Disclosure Public intelligent railway systems. This sub-component will also finance the preparation of an SMS action plan and the implementation of selected SMS interventions (e.g. maintenance, inspection, and repair work). All interventions will be carried out on the already existing railway network and will include the renewal of existing lines and supporting infrastructure. Construction of new railway lines (routes) is not envisaged, however, shorter sections (e.g. Bogojevo bypasses) are planned under the tentative list of sub-projects. As details on exact locations and design of projects are unknown, the Borrower will develop an Environmental and Social Management Framework (ESMF) with comprehensive screening procedures designed to successfully screen out all high-risk activities, including those triggering significant issues related to land acquisition, impacts on natural habitats or cultural heritage, etc. Though the scope of works is not yet fully defined, the preliminary screening of planned interventions indicates the Project risks to include: noise and air pollution, occupational health and safety (OHS), community health and safety, surface and groundwater pollution, generation of large amounts of construction waste, hazardous waste (contaminated stone aggregate and sleepers, asbestos, PCB contaminated oil, and other) and mixed waste, use of chemicals, use of nonrenewable resources, and others typical for construction and railways works. Risks to sensitive and protected areas are possible as the existing lines may pass through protected areas. No works on cultural heritage will be supported, but impacts are possible during works on existing lines.. Consequent to the aforementioned, the following environmental and social (ESS) standards apply: ESS1 Environmental Assessment, ESS2 Labor and Working Conditions, ESS3 Resource Efficiency and Pollution Prevention and Management, ESS4 Community Health and Safety, ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement, ESS6 Biodiversity Conservation and Sustainable
Nov 02, 2020 Page 8 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
Management of Living Natural Resources, ESS8 Cultural Heritage and ESS10 Stakeholder Engagement and Information Disclosure. The Client will prepare an Environmental and Social Management Framework (ESMF) to address the E&S risks and guide the implementation of Project activities compliant with the goals and requirements of ESF as well as WB EHS Guidelines for Railways.
Social Risk Rating Substantial The project has substantial social risks although it finances rehabilitation of selected existing railway lines and For Official Use Only signalization. The works will be performed on the railway track and the land section around the track, belonging, in the majority, to the IZS, hence, land acquisition activities are expected to be minor and concentrated around agricultural land in rural areas. However, impacts on livelihood are possible and the scale of economic displacement is unknown. Moreover, negative social risks on communities nearby cannot be foreseen at the present, although it is not expected that heavy project-related traffic will pass near inhabited communities. Furthermore, the ESS2 Labor and Working Condition will apply regarding the direct, workers contracted through the contractors and primary supply. Given the rehabilitation nature of works no labor influx is expected, the risk is minor. As that the works will be of a rehabilitation nature and no labor influx is expected, the risk of Sexual Exploitation and Abuse (SEA) is minor. However, the risk of Sexual Harassment (SH) during the construction and operational phase is possible and will be mitigated through appropriate training of the PIU. Also, the PIU will conduct an information campaign for the general public on SEA/SH. It is to be noted that Serbia has respective legislation in place. Moreover, the project level grievance mechanism envisages a special treatment of SEA/SH grievances related to the project, which will be managed by a trained expert. The necessary training for the appointed staff member who is to deal with such Public Disclosure Public grievances will be financed by projects TA. Since there are a lot of companies within Serbia that are able to conduct rehabilitation works on railways, most probably the employment will be generated at the local level, thus minimizing the expectancy of workers from outside of the region or even less likely workers from foreign countries. The SEA/SH risk is expected to be minimal mostly because of the low number of workers at the site. It is expected that the Project, through the TA component, will help the passenger railway company, Srbija Voz, to improve customer relations which is proposed through the project-related Stakeholder Engagement Plan. The direct benefits of improvement of the customer relations for Serbia Voz will benefit the most vulnerable and poorest segment of society who are the biggest users of the low-cost public transport systems like the railways. Vulnerable groups which include retired, elderly, and people with disabilities and chronic disease; single-parent headed households, male and female; people with low literacy and ICT knowledge; economically marginalized and disadvantaged groups; persons living below the poverty line; Roma people and women, as well as ethnic minorities such as Hungarians are not likely to be negatively affected by the Project. Improvement of the customer relations for the Serbia Cargo will also benefit the business sector using the rail cargo transport Neither the MoCTI nor the implementing companies have any experience of environmental and social management under the World Bank-supported infrastructural investment. Therefore, the PIU will employ full-time experienced environmental and social specialists as a condition of effectiveness. The PIU will also include an OHS specialist. The Expert will be supported through external training, to be defined during the project implementation.
Nov 02, 2020 Page 9 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
The fact that the Project is part of a Multi-phase Programmatic Approach (MPA) and consequent lack of detailed knowledge on the works in the future phases, and the possibility for the design documents to be developed under this phase, also factors into the risk of the project. Given the structure of the MPA, uncertainty around subprojects, the Project will be subject to E&S corporate oversight.
B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered
B.1. General Assessment
ESS1 Assessment and Management of Environmental and Social Risks and Impacts For Official Use Only Overview of the relevance of the Standard for the Project: The standard is relevant. Within the first phase of the MPA, the Project will focus on upgrading existing rail infrastructure and establishing the enabling environment for further corporatization of the railway companies and operationalization of sector reforms. Two sub-components are relevant in the context of environmental and health protection: Sub-component 1.1 Reliable and Safe Railway Infrastructure under which the Project will support IZS in carrying out a program of track renewal and safety interventions to restore service performance. No construction of new railway lines (routes) is envisaged, but shorter sections such as bypasses (e.g. Bogojevo bypass) are planned. Activities under sub-component 3.1 Intelligent Railway Systems and Safety Management Systems will, through TA and pilots, support initiation of structured planning of Intelligent Railway Systems (IRS and introduction of Safety Management Systems (SMS) in the railway sector. The project may finance the completion of investments where construction has already started, such as Prokop station. Public Disclosure Public
The expected environmental impacts from works mostly include those typical for civil works (dust, noise, OHS risks, etc.), but also management of larger quantities of hazardous waste (contaminated aggregate and waste sleepers), use of chemicals (creosote), and disturbance of sensitive natural areas. Impacts are expected to be localized, mostly reversible, and shot term. To address the aforementioned risks, the Borrower prepared an Environmental and Social Management Framework (ESMF) that will guide the process of environmental due diligence for each proposed subproject in a manner consistent and compliant with the WB ESF. The ESMF provides an overview of the national regulatory and institutional framework, relevant WB ESF standards, project activities, risk classification, and relevant ESA documents (templates are also provided for ESMP and ESMP Checklist). Environmental review procedures, integrated into the ESMF include screening, eligibility criteria, environmental assessment, project monitoring, and reporting. All high-risk activities will be screened out of support under the Project through elaborated screening procedures. In particular, construction of new sections will be excluded if triggering significant E&S issues (including, but not limited to risks for natural areas of high value or sensitivity, significant health risks, large scale physical displacement, significant cumulative risks, and social conflicts, etc.). The screening process will include environmental and social questionnaires, desk reviews, and site-visits. Environmental Assessment, depending on the activity risk, can take a form of (full or shortened) Environmental and Social Impact Assessments (ESIA), site-specific Environmental and Social Management Plans (ESMP), and generic ESMP Checklist for small scale civil works. For the works on existing buildings/constructions as well as those that already commenced, such as Prokop station, Environmental and
Nov 02, 2020 Page 10 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
Social Audit will be required to assess the EHS performance against Bank requirements during the first phase of construction. Any related material gaps can be addressed as part of the Bank’s financing. In addition, existing ESIAs for Project financed activities will be examined and revised (as needed) for ESF alignment. The ESMF and subsequent Environmental Assessment Reports (ESIAs, ESMPs, etc.) will also include provisions on the management of all wastes, including the management of hazardous wastes. These provisions will be in line with the national legislation and WB Environmental, Health, and Safety Guidelines (EHSG) for Railways, and other applicable (e.g. waste). In the long run, the project will produce many positive impacts due to increased traffic safety, improved energy efficiency as well as advanced quality of services.
All site-specific ESIA and ESMPs acceptable to the Bank should be disclosed and consulted on prior to the bidding of works, while the ESMF will be prepared and disclosed prior to the appraisal.
It is expected that the Project will have a positive impact on the poorest and vulnerable sections of society who For Official Use Only constitute the biggest users of low-cost public transport systems like the railways. Expected social impacts under component 1 include: OHS risks in relation to civil works; Community health and safety risks including traffic, generation by the project, traffic interruptions and risk of inadequate waste management; and land loss due to land acquisition activities. Considering the sub-projects which potentially envisage land acquisition activities are not fully aligned, ESS5 is relevant on a precautionary basis. Social risks under components 2 and 3 are not anticipated at this stage. IFIs co-financing Railway Sector Modernization will adopt and apply ESF and WB EHSG in managing activities under the Project.
ESS10 Stakeholder Engagement and Information Disclosure
Public Disclosure Public The Project level Stakeholder Engagement Plan has been prepared by the implementing agency, proportionate to the nature and scale of the project, and its potential risks and impacts. The SEP is going to provide a strategic frame for stakeholder engagement by identifying different vulnerable groups and interested and affected parties and developing an appropriate engagement method for each stakeholder category. Given that the beneficiary enterprises (Serbia Voz, Serbia Kargo, and Serbia Infrastructure) all provide services to different users, the interested and affected parties will be different for each company ( i.e. The SEP will treat mostly users of the railway public transport service for Serbia Voz, whereas for Serbia Kargo the interested and affected stakeholders will be enterprises using freight transport). The ESMF along with the SEP, acceptable to the Bank, will be disclosed prior to the project Appraisal with meaningful public consultations following and will target the various levels of stakeholders at all levels. For each project activity and subproject, under all three components, a Stakeholder Engagement Plan will be developed according to the project level SEP. The SEP will identify all interested and affected parties and propose concrete action plans for engaging different stakeholders. The project SEF and SEPs will be used to improve outreach and dialogue between enterprises and service users. It will also ensure that communities around the construction sites are adequately informed and protected as per the ESMP. The project-related Grievance Readdress Mechanism (GRM) will be presented as part of the project level SEP, and consequently the sub-project level SEPs.
Nov 02, 2020 Page 11 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
Stakeholder engagement activities are a vital part of project implementation and will be conducted throughout the project lifecycle under all three Project components. The financing of stakeholder engagement activities is envisaged under component 2.3. Due to the COVID 19 pandemic outbreak, during the course of project implementation, limitations to traditional stakeholder engagement activities may be imposed (i.e. exercise social distancing and avoid public gatherings) to prevent and reduce the risk of the virus transmission. In such circumstances, citizen engagement will be performed as per specifications listed in the World Bank’s Technical Note: Public Consultations and Stakeholder Engagement in WB-supported operations when there are constraints on conducting public meetings.
B.2. Specific Risks and Impacts
A brief description of the potential environmental and social risks and impacts relevant to the Project. For Official Use Only ESS2 Labor and Working Conditions The standard is relevant. The standard will apply to (i) workers hired to implement the project (PIU), to (ii) workers engaged by the contractors and to sub-contractors if engaged, and to (iii) primary supply workers. LMP, acceptable to the Bank, has been prepared and disclosed prior to the appraisal. The LMP will be a part of tendering documents making it binding for the contractor. GRM for the employees will be established for works related to the project. Furthermore, the Contractors will be required to prepare Occupational Health and Safety (OHS) management plans for each sub-project, prior to works. Key labor risks of the Project are the following: electric and magnetic field risk for workers, accidents during soil stabilization, accidents during demolition works, exposure to chemicals (paints, solvents, refrigerant oil for transformers and switches, lubricants, and fuels, asphalt fumes, pulverized silica, rail lubricants, fuels, etc.), accidents relating chain saws and tree fall during timber cutting; traffic accidents, excavations hazards, exposure to
Public Disclosure Public construction airborne agents (dust, silica, and asbestos), exposure to chemicals (asphalt fumes, pulverized silica, rail lubricants, fuels, solvents, paints), welding hazards (aluminum termite welding fume emissions, burns, and radiation), lack of workers’ awareness on occupational health and safety requirements such as the use of Personal Protective Equipment (PPE) and safe workplace practices. It is expected that there will be no major labor influx and that labor will be generated locally since many companies within Serbia are capable of conducting the envisaged works. Although SEA/SH related risks are predicted to be low because of (i) low number of workers on site expected and (ii) locally generated employment, all contractors will adopt the Code of Conduct for Sexual exploitation and abuse/ Sexual harassment (SEA/SH). Risks of labor-management issues and the OHS are low to moderate given that the Labor-related laws in Serbia comply with ILO conventions and are most regularly enforced. The project will have a continuous need for suppling the following materials: Ballast (stone aggregate), possibly sand and gravel, sleepers (concrete or wood), fasteners, bolts, etc. Risks regarding respective industries have been assessed and no major risks including child labor or forced labor were detected. Although labor-related laws in Serbia comply with ILO conventions, we cannot say that they are fully enforced in every aspect. Hence, risks with respect to OHS issues can occur which will be mitigated through the use of the World Bank’s standard bidding documents which have provisions concerning this respective matter. OHS risks for primary suppliers are those typical for quarries/excavation sites and processing units (production of concrete, processing waste) and include risk from injuries due to falls, inadequate operating of machinery, malfunctioning machinery, lack of training, lack of safety
Nov 02, 2020 Page 12 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
procedures, PPP, etc. In this sense, request for proof of compliance with the national OHS regulation and GIIP towards primary suppliers will be integrated to all relevant ESAs (ESIA, ESMPs, etc.).
ESS3 Resource Efficiency and Pollution Prevention and Management This standard is relevant. The Project will produce large quantities of waste mostly from the rehabilitation of tracks, including removed contaminated stone aggregate (from lubricants, oils, and fuel) and waste wooden sleepers (creosote-treated). The amount of such waste cannot be determined at this stage; however, the largest quantities of hazardous pollutants are usually found in a 30 cm layer of aggregate/soil of the railway shoulder on both of its sides. It is estimated at 20-30 kilograms per meter length of the rail. Equally important, the number of waste sleepers generated in railway works is approximately 1600 pieces per kilometer. Ideally, inert construction waste will be reused while unusable and contaminated fractions will be disposed of or treated at licensed facilities. No contaminated fractions may be reused or placed on the market. Noise emissions and dust from the use of heavy For Official Use Only machinery, handling loads, and transport are unavoidable. The project will use considerable amounts of mineral non-renewable resources e.g. new stone aggregate and gravel from borrow pits and quarries, sand that is likely dredged, as well as the use of a range of materials like asphalt, cement, and others. Depending on the design of sub-projects, there may be significant use of timber and chemicals (for treatment of new wooden sleepers, etc.). It is not expected that the project is a significant user of energy. Herbicides/pesticides will not be purchased or used under the project. Use of larger amounts of water resources and production of wastewaters may occur in the cleaning of removed stone aggregate.
Immanent and subsequent contamination, disturbance, and inefficient use of non-renewables will be prevented through the careful selection and implementation of procedures and measures aligned with requirements of the ESF, WB EHSG, and national regulation. These measures will be integrated into mitigation plans of ESMF, ESIAs, site- specific ESMPs, and ESMP checklist. The existing ESIAs (finalized according to the national procedures), as well as EHS
Public Disclosure Public Performance Audit for commenced projects (such as the construction of the Prokop station), will be weighed against these measures to ensure that what is currently in place is operating in accordance with Bank requirements. EAS mitigation measures will include waste classification parameters and procedures, appropriate/acceptable handling, storage, disposal, and treatment methods. Mitigation for activities of primary suppliers will also be integrated to site- specific ESAs; only licensed quarries, excavation sites (and other that qualify as the primary supplier) that comply to national regulation, WB EHG, and GIIP through the application of valid concessions (matching the production and supply), environmental permits and other permissions of competent authorities (e.g. Serbia Waters) will be considered. ESMPs (stand-alone or as part of the EIAS) and ESMP Checklists will be included in bidding and contracting documentation.
ESS4 Community Health and Safety This Standard is relevant. It is not expected that a significant volume of traffic is generated by the project, however, there will be rail and traffic interruptions caused by works on railway lines and rail-road crossings. In case the works will be carried near inhabited areas, traffic management plans will be prepared in site-specific ESMPs based on the principles and procedures provided in the ESMF, and accordingly followed. The measures will include, but not be limited to: ensuring safe corridors and crossings for pedestrian movement, safety systems at a railway crossing
Nov 02, 2020 Page 13 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
(sound and visual warnings, gate arms), resting areas, noise, and vibrations. Implementation of rail operational safety procedures aimed at reducing the likelihood of train collisions such as a positive train control (PTC) system will be a part of the Safety Management System applied at all WBs financed lines. Management of construction wastes and hazardous wastes will be conducted in a manner that would safeguard the environment and the communities where the disposal is planned, based on the principles and procedures provided in the ESMF. All waste management activities will include adequate mitigation and rehabilitation practices to prevent the spreading of odors, water, and soil contamination and the consequent impact on human health. Risks to the community stemming from unauthorized access to working sites will be prevented through a set of measures specified in ESAs such as allowing access only to Contractors’ employees, supervision engineers, and otherwise authorized persons with informational and warning signs and fences. Emergency preparedness and response plan for both during the construction and operational stages will be integrated into all ESAs. For freight operations of the railway, specific guidance for the transport of dangerous goods will be included in the ESMF. Community health and safety measures will be included in ESAs (ESIAs, site-specific ESMPs, and ESMP Checklist) based on the principles and procedures provided in the For Official Use Only ESMF. Where ESIAs and ESMPs already exist or are under development, where planned activities are already at some stage of preparation or implementation, they will be reviewed and revised accordingly (if needed) to meet the requirements of the ESF, World Bank Group General EHS guidelines, and Railway EHS guidelines and national regulation. The E&S (EHS) Performance Audit for commenced projects will be assessed against these measures/requirements and identified gaps be closed to ensure that they are implemented in accordance with Bank requirements. The E&S Audit for construction of the Prokop railway station will include necessary structural measures for adaptation of climate and geophysical hazards considering safety risks to the communities. Given that the works will be of rehabilitation nature and there are a lot of companies within Serbia that are able to conduct rehabilitation works on railways, the employment will most probably be generated at the local level, thus minimizing the risk of labor influx and the expectancy of workers from outside of the region. Ergo, no Sexual Exploitation and Abuse (SEA) is expected but Sexual Harassment (SH) during construction and operation is possible. This risk has been noted in the risk section.
Public Disclosure Public Since the project is financing the development of sub-project designs and technical documentation under subcomponent 1.2., the principles of universal access will be incorporated into the design for the construction of the main railway station - Belgrade Centre (Prokop), as well as into the designs for all relevant reconstruction/rehabilitation sub-projects. Universal access will be considered and enabled for all relevant (e.g. accessibility to trains, tracks, train stations, places where citizen engagement activities will be conducted) subprojects and activities under all three Project components Life and Fire Safety (LFS) measures will be implemented in an LFS Master Plan in accordance with specifications in the WBG EHS guidelines, required for the Public Access structures (e.g stations, train) of the project.
ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement The standard is relevant for the Project. Although the Project is going to finance rehabilitation works on selected existing railway lines, minor land acquisition activities are expected. Land acquisition impacts will be limited to proposed activities under Component 1, Sub-Component1.1: Reliable and Safe Railway Infrastructure with regard to (i) work concerning the construction of rail level crossings and (ii) Construction of the new bypass as part of the alternative transport route to diverse the rail lines during the construction, modernization and rehabilitation of E-85:
Nov 02, 2020 Page 14 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
(Beograd Centar) – Stara Pazova – Novi Sad – Subotica –State border – (Kelebija), section Novi Sad-Subotica-border with Hungary. It is understood that the land requirements for the footprint of the project will be minor to moderate in scale. Where private land needs to be acquired, it will be mostly agricultural land, since the construction of a new railway bypass is envisaged through arable agricultural cultivated land in Serbia (Vojvodina) The exact project footprint is currently not known. Immovable assets attached to the land are not anticipated, since the area of the new bypass construction is exclusively agricultural and no structures have been detected. Potential livelihood impacts and scale of economic displacement still needs to be identified. Although the Project does finance construction activities in urban areas (e.g. works on Prokop station in Belgrade) land acquisition is not foreseen on such sub-projects because all construction in urban areas will be conducted within the existing right of way. Works on the construction of the second stage of Prokop station in Belgrade center will be confined within the existing footprint. The existing structure built under stage one does not accommodate any businesses, thus eliminating the risk of potential temporary impacts on shop owners, vendors, hawkers, etc. during construction works. Land acquisition activities needed for the construction of For Official Use Only the station have been completed in 1974. There are no land acquisition legacies related to the project In order to address the aforementioned risks, the borrower prepared a Resettlement Policy Framework (RPF) to establish resettlement principles, organizational arrangements, and design criteria to be applied to subprojects, and to mitigate potential resettlement impacts. Moreover, the RPF sets out guidance for a detailed Social Analysis and screening procedure to assess the potential scale and scope of the loss of private assets and determine the potential relevance of the ESS5 for each selected sub-project. If the ESS5 is found as relevant, a sub-project level Resettlement Action Plan (RAP) is to be developed per RPF by the borrower prior to any land acquisition activities. The RPF acceptable to the Bank will be disclosed and meaningfully consulted prior to project Appraisal.
ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources
Public Disclosure Public The standard is relevant. While no new construction or other works that can significantly impact sensitive or valuable natural habitats will be supported under the Project, some of the project activities on the existing railway tracks (such as maintenance and rehabilitation) may take place within the ecological network; E.g. proposed sub-project for regular maintenance of the left track from Pancevo bridge to Vrsac and state border, partly takes place in an area that is an integral part of the ecological network of Serbia, ecologically important area for birds-IBA, as well as the ecological corridor – Danube and Banks). Should a project within a protected area (or one that may affect critical habitats or protected species) be proposed, site-specific ESAs will include provisions to identify risks coming from e.g. right of way, noise, and human presence and propose adequate mitigation measures based on principles and procedures defined in ESMF, that includes but is not limited to Biodiversity Management Plan (prepared as part of an ESA or stand-alone document), avoidance of breeding/nesting periods for sensitive/protected species, strict control of movement, expert oversight, use of rail track machinery for maintenance). Construction of the new lines or any other activity that produces significant stress to high value or sensitive natural areas (such as habitat alteration and fragmentation) will be excluded from financing through a comprehensive screening process defined in the ESMF. Impacts to sensitive natural areas from activities of primary suppliers, such as quarrying and excavation of e.g. gravel or sand, is possible even if they do not take place in the protected area. Risk is also present in the case of the supply of larger amounts of wooden sleepers is procured. These risks will be addressed through site-specific ESAs ensuring impacts are adequately mitigated through the application of permits, licenses, concessions, ESIAs, environmental permits, certificates (e.g. FSC) but also a dialogue with nature protection competent authorities.
Nov 02, 2020 Page 15 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities The standard is not relevant for the project
ESS8 Cultural Heritage The Standard is relevant. No works on cultural heritage facilities are planned and significant impacts are not envisaged. However, the standard is relevant as it is likely that some works that will be carried out within the existing railway network, and also the routes of proposed new sections, may pass within the range of impact to cultural heritage (CH; including archeological) protected objects and zones. Construction and use of access roads, vibrations from the use of heavy machinery, etc. are possible sources of impact to CH. To address the risks (i) cultural heritage (CH) will be integrated into the screening inquiry, (ii) Cultural Heritage Management Plans will be developed (as part For Official Use Only of the ESIA/ESMP) for all works with identified CH risks (iii) the ESMF and the site-specific ESIA/ESMP, ESMP Checklists will include precautionary provisions on chance finds.
ESS9 Financial Intermediaries The standard is not relevant for the project
C. Legal Operational Policies that Apply
OP 7.50 Projects on International Waterways No The Project will not support any works directly on international waterways or tributaries there of. There will be works on bridge rehabilitation, and the ESMF and site-specific ESMPs will provide guidance for protecting river bed from Public Disclosure Public pollution and littering during works on bridges. As such, there are no possible impacts on the water quality or quantity to the riparians associated with these works. OP 7.60 Projects in Disputed Areas No
B.3. Reliance on Borrower’s policy, legal and institutional framework, relevant to the Project risks and impacts
Is this project being prepared for use of Borrower Framework? No
Areas where “Use of Borrower Framework” is being considered: Borrower Framework will not be used but the Borrower is advised to combine the procedures on meeting the World Bank ESF with the environmental permitting as prescribed by the Serbian law, so as not to duplicate efforts.
IV. CONTACT POINTS
Nov 02, 2020 Page 16 of 17 The World Bank Serbia Railway Sector Modernization (P170868)
World Bank Contact: Victor A Aragones Title: Senior Transport Economist
Telephone No: 5220+30091 Email: [email protected]
Contact: Svetlana Vukanovic Title: Senior Transport Specialist
Telephone No: 5265+3708 / 381-11-3023708 Email: [email protected]
Borrower/Client/Recipient Borrower: Ministry of Finance
Implementing Agency(ies) For Official Use Only Implementing Agency: Ministry of Construction, Infrastructure, and Transport
Implementing Agency: Serbia Railways Infrastructure
V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects
Public Disclosure Public VI. APPROVAL
Task Team Leader(s): Victor A Aragones, Svetlana Vukanovic
Practice Manager (ENR/Social) Anne Olufunke Asaolu Cleared on 02-Nov-2020 at 11:31:13 GMT-05:00
Nov 02, 2020 Page 17 of 17