Supplementary Lenders Information Package (SLIP) in complement of Environmental and Social Impact Assessment Vientos Neuquinos I Wind Farm Project (Neuquén, Argentina) 28 June 2019 Project No.: 0511812 The business of sustainability Document details The details entered below are automatically shown on the cover and the main page footer. PLEASE NOTE: This table must NOT be removed from this document. Document title Supplementary Lenders Information Package (SLIP) in complement of Environmental and Social Impact Assessment Document subtitle Vientos Neuquinos I Wind Farm Project (Neuquén, Argentina) Project No. 0511812 Date 28 June 2019 Version 1.0 Author ERM Client Name AES ARGENTINA www.erm.com Version: 1.0 Project No.: 0511812 Client: AES ARGENTINA 28 June 2019 Signature Page 28 June 2019 Supplementary Lenders Information Package (SLIP) in complement of Environmental and Social Impact Assessment Vientos Neuquinos I Wind Farm Project (Neuquén, Argentina) Leonardo Fantin Camille Maclet Business Unit Managing Partner Partner ERM Argentina S.A. Av. Cabildo 2677, Piso 6º (C1428AAI) 46 Buenos Aires, Argentina © Copyright 2019 by ERM Worldwide Group Ltd and / or its affiliates (“ERM”). All rights reserved. No part of this work may be reproduced or transmitted in any form, or by any means, without the prior written permission of ERM. www.erm.com Version: 1.0 Project No.: 0511812 Client: AES ARGENTINA 28 June 2019 SUPPLEMENTARY LENDERS INFORMATION PACKAGE (SLIP) IN CONTENTS COMPLEMENT OF ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT Vientos Neuquinos I Wind Farm Project (Neuquén, Argentina) CONTENTS EXECUTIVE SUMMARY ......................................................................................................................... 1 1 PROJECT DESCRIPTION ............................................................................................................. 1 1.1 Overview ........................................................................................................................................ 1 1.2 Project location ............................................................................................................................... 1 1.3 Access roads .................................................................................................................................. 1 1.4 Inner Site Areas .............................................................................................................................. 1 1.5 Construction ................................................................................................................................... 2 1.6 Operation and Maintenance ............................................................................................................ 2 1.7 Abandonment ................................................................................................................................. 2 1.8 Chronogram ................................................................................................................................... 3 2 LEGAL & ADMINISTRATIVE FRAMEWORK ................................................................................ 4 2.1 Overview of the Legal and Institutional Organization ........................................................................ 4 2.2 National vs. Provincial Regulatory Setting........................................................................................ 4 2.2.1 Environmental and Health and Safety Regulations........................................................... 5 2.3 Authorities ...................................................................................................................................... 5 2.4 Federal Regulations........................................................................................................................ 5 2.4.1 National Constitution....................................................................................................... 6 2.4.2 Human Rights ................................................................................................................ 6 2.4.3 Environmental Framework Law ....................................................................................... 7 2.4.4 Other Relevant Environmental Regulations ..................................................................... 7 2.4.5 Health and Safety Regulations ........................................................................................ 9 2.5 Neuquén Province Regulations ....................................................................................................... 9 2.5.1 Renewable Energies Regulations .................................................................................... 9 2.5.2 Environmental Impact Assessment and Environmental License ....................................... 9 2.5.3 Other Environmental Regulations .................................................................................. 10 2.6 International Treaties and Agreements .......................................................................................... 11 2.7 International Requirements ........................................................................................................... 12 2.7.1 IFC Guidelines, Standards and Policies ......................................................................... 12 2.7.2 World Bank Policies ...................................................................................................... 15 2.7.3 Equator Principles ........................................................................................................ 16 3 PROJECT ALTERNATIVES ........................................................................................................ 18 3.1 Overall Project context .................................................................................................................. 18 3.2 Site selection ................................................................................................................................ 18 3.2.1 Alternative Locations and Design for Wind Turbines ...................................................... 19 3.3 “No Project” Alternative ................................................................................................................. 20 3.4 References ................................................................................................................................... 20 4 AREAS OF INFLUENCE ............................................................................................................. 21 4.1 Direct Area of Influence ................................................................................................................ 25 4.1.1 Environmental buffer..................................................................................................... 25 4.1.2 Social buffer ................................................................................................................. 25 4.2 Indirect Area of Influence .............................................................................................................. 28 4.2.1 References................................................................................................................... 30 5 BASELINES ................................................................................................................................ 30 5.1 Biodiversity ................................................................................................................................... 31 www.erm.com Version: 1.0 Project No.: 0511812 Client: AES ARGENTINA 28 June 2019 Page i SUPPLEMENTARY LENDERS INFORMATION PACKAGE (SLIP) IN CONTENTS COMPLEMENT OF ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT Vientos Neuquinos I Wind Farm Project (Neuquén, Argentina) 5.1.1 Introduction .................................................................................................................. 31 5.1.2 Methodology ................................................................................................................ 35 5.1.3 Criteria used to select vulnerable species ...................................................................... 36 5.1.4 Results ......................................................................................................................... 38 5.1.5 Potentially distributed species ....................................................................................... 42 5.2 Socioeconomic Baseline ............................................................................................................... 50 5.2.1 Study area.................................................................................................................... 51 5.2.2 Governance and Administration .................................................................................... 52 5.2.3 Demographics .............................................................................................................. 53 5.2.4 Ethnicity, Language and Religion .................................................................................. 57 5.2.5 Gender and Gender Rights ........................................................................................... 58 5.2.6 Economy and Employment ........................................................................................... 58 5.2.7 Livelihoods and Income ...............................................................................................