TABLE OF CONTENTS 3.0 PROJECT DESCRIPTION.......................................................................................... 3­1 3.1 Project Objectives and Justification ................................................................ 3­1 3.1.1 Background .......................................................................................... 3­2 3.1.1.1 Infrastructure of the Existing Canal........................................... 3­3 3.1.1.2 Improvement and Modernization of the Existing Canal............. 3­6 3.1.2 Objectives ...........................................................................................3­10 3.1.3 Justification .........................................................................................3­12 3.1.4 Analysis of Project Alternatives...........................................................3­15 3.1.4.1 Alternatives Studied................................................................3­14 3.1.4.2 Non­Implementation Alternative.............................................3­26 3.1.5 Selected Alternative............................................................................3­26 3.1.5.1 Locks Characteristics ..............................................................3­27 3.1.5.2 Access and Navigation Channels.............................................3­30 3.1.5.3 Measures to Ensure Water Supply...........................................3­31 3.1.5.4 Atlantic Side Vehicle Crossing................................................3­35 3.2 Geographical Location of the Project ..............................................................3­35 3.2.1 Location and Extension .......................................................................3­36 3.2.2 Description of Expansion Project Works .............................................3­36 3.2.2.1 General Outline of Works .......................................................3­39 3.2.2.2 Pacific Side Works..................................................................3­43 3.2.2.3 Atlantic Side Works................................................................3­46 3.2.2.4 Gaillard Cut and Gatun Lake Works.......................................3­49 3.2.2.5 Excavated and Dredged Material Disposal Sites......................3­47 3.3 Study Area ......................................................................................................3­49 3.3.1 Environmental Study Area (ESA)........................................................3­50 3.3.1.1 General Study Area (GSA)......................................................3­51 3.3.1.2 Specific Study Area (SSA)......................................................3­51 3.3.1.3 Direct Impact Area (DIA) .......................................................3­53 3.3.2 Socioeconomic Study Area (SESA).....................................................3­54 Category III Environmental Impact Study URS Holdings, Inc. i Panama Canal Expansion ­­ July 2007 Third Set of Locks Project 3.4 Legislation and Technical and Environmental Standards Applicable to the Sector and the Project ........................................................3­58 3.4.1 Relevant Panamanian Environmental Legislation ................................3­58 3.4.2 Executive Decree on the Environmental Impact Assessment Process .......3­60 3.4.3 Other Pertinent Panamanian Regulations .............................................3­63 3.4.4 The Panama Canal Authority...............................................................3­71 3.4.5 The Panama Canal in the International Context ...................................3­75 3.4.5.1 International Standards and Guidelines ...................................3­75 3.4.5.2 Bilateral, Multilateral and Regional Treaties and Agreements ...3­76 3.5 Description of Project Phases..........................................................................3­77 3.5.1 Planning Phase ....................................................................................3­77 3.5.2 Construction Phase ..............................................................................3­78 3.5.2.1 General Strategy .....................................................................3­79 3.5.2.2 Mobilization and Construction of Temporary and Support Facilities ....3­80 3.5.2.3 Borrow Materials and Production of Aggregates .....................3­88 3.5.2.4 Construction of Temporary and Permanent Access Roads.......3­83 3.5.2.5 Clearing, Stripping, and Grubbing ..........................................3­85 3.5.2.6 Runoff Control and Diversion ................................................3­86 3.5.2.7 Excavation and Backfill ..........................................................3­87 3.5.2.8 Blasting...................................................................................3­92 3.5.2.9 Slope and Cut Layout..............................................................3­96 3.5.2.10 Navigation and Access Channel Dredging and Deepening......3­98 3.5.2.11 Preparation and Management of Disposal Sites....................3­103 3.5.2.12 Construction of Locks and Water Saving Basins ..................3­104 3.5.2.13 Construction of the Borinquen Dikes....................................3­107 3.5.2.14 Raising the Level of Gatun Lake .........................................3­108 3.5.2.15 Mechanical and Electromechanical Installations...................3­114 3.5.3 Operations Phase ...............................................................................3­114 3.5.3.1 Routine Lockage Operations .................................................3­114 3.5.3.2 Gatun Lake Management ......................................................3­115 3.5.3.3 Locks Maintenance ...............................................................3­116 Category III Environmental Impact Study URS Holdings, Inc. ii Panama Canal Expansion ­­ July 2007 Third Set of Locks Project 3.5.3.4 Navigation and Access Channel Maintenance .......................3­116 3.5.4 Abandonment Phase ..........................................................................3­117 3.5.5 Flow Chart and Performance Schedule of Each Phase .......................3­119 3.6 Infrastructure and Equipment Required .........................................................3­120 3.6.1 Equipment to be Used During Construction.......................................3­121 3.6.2 Equipment Mobilization Frequency ..................................................3­123 3.6.3 Expected Vehicle Flow......................................................................3­123 3.6.4 Mapping Routes with the Heaviest Traffic.........................................3­124 3.7 Supplies Needed During Construction and Operation....................................3­126 3.7.1 Basic Services ...................................................................................3­127 3.7.1.1 Water....................................................................................3­127 3.7.1.2 Power....................................................................................3­128 3.7.1.3 Sewerage ..............................................................................3­129 3.7.1.4 Access Roads........................................................................3­130 3.7.1.5 Public Transportation............................................................3­131 3.7.1.6 Other Services.......................................................................3­132 3.7.2 Labor.................................................................................................3­131 3.7.3 Materials and Supplies Needed for the Works....................................3­134 3.7.3.1 Cement .................................................................................3­135 3.7.3.2 Concrete ...............................................................................3­135 3.7.3.3 Steel .....................................................................................3­136 3.7.3.4 Fuel.......................................................................................3­137 3.8 Waste Management and Disposal in All Phases.............................................3­137 3.8.1 Planning Phase Waste Management and Disposal..............................3­137 3.8.2 Construction Phase Waste Management and Disposal .......................3­137 3.8.2.1 Solid Waste...........................................................................3­137 3.8.2.2 Liquid Effluents ....................................................................3­138 3.8.2.3 Gaseous Emissions.................................................................3­138 3.8.2.4 Hazardous Waste ..................................................................3­139 3.8.3 Operations Phase Waste Management and Disposal ..........................3­139 3.8.3.1 Solid Waste...........................................................................3­139 Category III Environmental Impact Study URS Holdings, Inc. iii Panama Canal Expansion ­­ July 2007 Third Set of Locks Project 3.8.3.2 Liquid Effluents ...................................................................3­139 3.8.3.3 Gaseous Emissions...............................................................3­140 3.8.3.4 Hazardous Waste .................................................................3­140 3.9 Compliance with the Land Use Plan..............................................................3­140 3.10 Financial Study and Analysis ........................................................................3­141 3.10.1 Overall Investment Amount ..............................................................3­142