Environmental and Social Review Summary (ESRS) PPP Vial Circuito 6 - URUGUAY
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Environmental and Social Review Summary (ESRS) PPP Vial Circuito 6 - URUGUAY Original language of the document: Spanish Review cut-off date: February 4, 2021 1. General Project information and scope of IDB Invest’s environmental and social review The Ministry of Transport and Public Works of Uruguay (“MTOP”, for its acronym in Spanish), acting as Executing Unit of the National Roads Directorate (“DNV”, for its acronym in Spanish), called for bids for the construction, operation (exploitation and maintenance) and financing of the 73.5-kilometer road infrastructure within the public domain strip of Route 6 from its intersection with Avenida Belloni (marker 16k879) and Route 12 (marker 90k442) to the north of the town of Chamizo, Department of Florida, Uruguay (the “Project”). Once the competitive bidding process concluded, the agreement was pregranted to Concesionario Circuito Seis Cuchilla Grande S.A. made up by the Spanish company Rover Infraestructura S.A. and the Uruguayan company Construcciones Viales y Civiles (CVC) S.A. (the “Client”, the “Company” or the “Consortium”). The Project works include widening and refurbishing the structure of the existing road surface, junctions in the intersections with crossing roads, secondary roads and accesses to the main road, two-lane expansion in each direction (between the intersections of Route 6 and Avenida Belloni and Route 74), the construction of bike lanes, refurbishing of the 11 existing bridges1, the construction of 5 new bridges, rain water drainage and animal crossings, and the installation of metal guardrails, lighting and signaling elements. The Project also entails building a bypass to the City of San Ramón (about 6 kilometers long and requiring the expropriation of 26 private plots) and a new bridge over the Tala brook located 3 kilometers south of San Ramón. The works will be carried out on one side of the road at a time to allow for traffic. The Project establishes the installation of a main construction camp on km 27 of Route 102 (which will include the asphalt plant), a secondary construction camp (where the concrete plant will be installed) at a location yet to be determined and additional camps with worker facilities. It will also have a gravel and stone quarry located in the Department of Canelones (Cantera Piedritas) and a gravel quarry located in the Department of Canelones (Cantera Tomás Aldabalde – La Paz), in addition to a chippings quarry (2) in the San Bautista area and a gravel quarry in Chamizo. More secondary working camps will be potentially set up and additional quarries will be exploited. The Consortium will thus request the related permits. Electric power will be obtained from the public grid or generated locally (diesel oil generators). The Project term will be 36 months and at its busiest time it will require about 160 workers. The environmental licenses have been requested from the National Environmental Agency (“DINAMA”, for its acronym in Spanish) for different areas, as follows: i) Toledo bridge and Canelón Grande bridge 1 The refurbishing of bridges will entail improving the surface course, widening and reinforcing the existing foundations or installing new foundations. 2 “CHIPPINGS” shall be understood to be the material from the Asencio Formation: well selected sandstones with secondary ferrification and silicification processes of a rusty color. From a structural standpoint, the performance of the road surface is similar to or better than that of gravel. p. 2 (both classified under Uruguayan legislation as Category A, with minimal environmental complexity) regarding which a Prior Environmental Authorization (“AAP”, for its acronym in Spanish) certificate was obtained; ii) bypass San Ramón and Tala bridge (Category B), whose APP certificate was requested and is pending; and iii) Chamizo, Santa Lucía Paso Viejo and Santa Lucía Route 6 bridges, whose related AAP certificates are still pending as well. The status of the quarries environmental licensing is as follows: i) Piedritas quarry, the AAP certificate and the environmental operation authorization (“AAO”, for its acronym in Spanish) have already been granted and ii) Aldabalde quarry, license is still pending. Owing to the mobility restrictions adopted by the Uruguayan government as a result of the COVID-19 pandemic, the Environmental and Social Due Diligence (ESDD) process carried out virtually in October 2020 and February 2021. During such a process, IDB Invest held online meetings with the personnel in charge from the Construction Consortium and personnel from the Land Topography Office of the MTOP to discuss issues related to expropriations. 2. Environmental and Social Classification, and Rationale In conformity with IDB Invest’s Environmental and Social Sustainability Policy, the Project was classified as a Category B project since the environmental and social impacts, as well as the occupational risks related to the construction and operation phases, are deemed medium, reversible and manageable through management plans and programs that are well-known in the sector. The Performance Standards (“PS”) of the International Finance Corporation (IFC) triggered by the Project are: PS 1: Assessment and Management of Environmental and Social Risks and Impacts; PS 2: Labor and Working Conditions; PS 3: Resource Efficiency and Pollution Prevention; PS 4: Community Health, Safety and Security; PS 5: Land Acquisition and Involuntary Resettlement; PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources; and PS 8: Cultural Heritage. 3. Environmental and Social Context 3.1 Project Area Overview Most Project activities relate to refurbishing and constructing a new road on the existing public domain strip of Route 6. The route runs through the Departments of Canelones and Florida and south- north across areas close to the cities of Toledo, Sauce, Santa Rosa, San Bautista, Castellanos, San Ramón and Chamizo. The population of the Departments of Canelones and Florida is 520,187 and 67,048 inhabitants, respectively. The mean annual temperature in the Project area is 16.5°C, whereas the mean annual precipitation stands at 1,098 mm; the main winds blow south-east and east-north east. Route 6 landscape shows a high degree of anthropization owing to the agriculture and dairy production activities carried out in the region. The San Ramón bypass runs across a rural area mainly characterized by crops and natural grasslands, two sections of native forest extending along 280 meters (located north of the Santa Lucía river) and the riparian ecosystem of the Santa Lucía river. p. 3 4. Environmental Risks and Impacts and Proposed Mitigation and Compensation Measures 4.1 Assessment and Management of E&S Risks and Impacts 4.1.a Environmental and Social Management System The Consortium companies have in place environmental and social management systems (ESMS) certified under the ISO 9001 (quality system), ISO 14.001 (environmental management system) and OHSAS 18.001 (occupational health and safety system) standards. Based on the integrated management system prepared by the CVC, the Consortium will design and implement an Integrated Environmental, Social, and Health and Safety System (IMS) applicable to work fronts, quarries and surplus material storage sites, including: i) the Environmental Management Plans approved by the DINAMA; ii) the Health and Safety Plan approved by the Ministry of Labor and Social Security (“MTSS”, for its acronym in Spanish) for each Project component; and iii) the requirements of the Project’s Environmental and Social Action Plan (ESAP). The IMS will be led by the Environmental, Social, and Health and Safety Manager, who will directly report to the Technical Management Area and the Executive Management Area of the Consortium. Their duties will include representing the Consortium before local authorities, financing institutions and third-party representatives. The Consortium will also hire a Health and Safety professional, who will lead the team of Health and Safety technicians and supervisors and will report to the IMS Manager. In addition, the Consortium will have a social specialist to manage the social aspects of the Project and will provide for the potential hiring of an archeologist to act in the event of chance finds. 4.1.b Policy CVC’s IMS includes an integrated management policy prepared for the execution of road infrastructure works. However, the Consortium will prepare and adopt an Environmental, Social, and Health and Safety Policy for the Project, whose objectives will explicitly incorporate the legal and PS requirements applicable to the Project regarding labor and working conditions, resource efficiency and pollution prevention, community health and safety, and biodiversity conservation and cultural heritage. 4.1.c Identification of Risks and Impacts CVC’s IMS includes a procedure to identify and assess environmental issues. However, the Consortium will prepare an E&S aspects identification and assessment matrix for the Project, which will consider all its facilities and activities. Likewise, the Consortium will prepare an occupational hazards identification and assessment matrix for all the planned activities. 4.1.c.1 Direct and Indirect Impacts and Risks Some of the main expected impacts and risks during the Project’s construction phase include generation of noise and dust, the potential impact on third parties of quarry activities (mainly explosions and truck traffic), vegetation loss (in the San Ramón bypass area with a slight impact on