Turkey - Electricity Distribution Rehabilitation Project

43560 Authorized INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE Disclosure I. Basic Information Date prepared/updated: 03/22/2007 Report No.: AC2383 Public 1. Basic Project Data Country: Turkey Project ID: P096801 Project Name: Electricity Distribution Rehabilitation Project Task Team Leader: Sameer Shukla Estimated Appraisal Date: June 21, 2006 Estimated Board Date: April 19, 2007 Managing Unit: ECSSD Lending Instrument: Specific Investment Authorized Loan Sector: Power (100%) Theme: Other urban development (P);Infrastructure services for private sector Disclosure development (S) IBRD Amount (US$m.): 269.40 Public IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 75.00 75.00 Authorized Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] Disclosure 2. Project Objectives The Project Development Objective is to help improve the reliability of power supply to Public consumers in Turkey by supporting the implementation of the electricity distribution network rehabilitation program. 3. Project Description The Electricity Distribution Rehabilitation Project consists of the following investments: Distribution Network Rehabilitation and Expansion: This includes investment projects Authorized for distribution network rehabilitation and expansion in the TEDAS regional companies of Ayedas, Uludag, Meram, Gedez, Toroslar, Menderes, Osmangazi, and Akdeniz. The projects comprise medium and low voltage (34.5 kV, 0.4 kV) line replacements and extensions, substation upgrades, and upgrading of lines from non-standard medium Disclosure voltages and their conversion to underground cables. Public The distribution network projects to be financed by the Loan include rehabilitation and upgrading of existing distribution equipment and facilities, network expansion by constructing new distribution substations and feeders using predominantly underground cables, and replacement of existing run-down and aged medium and low voltage  overhead lines in densely populated areas with underground cables. While rehabilitating the networks, efforts would be made to reduce non-standard medium voltages (besides 34.5 kV) which are currently in operation at several locations. Network rehabilitation would help reduce losses, reduce network operation and maintenance costs, and reduce supply interruptions caused by equipment and facilities outages. In addition, these projects would also improve the safety of the network by reducing the potential for faults and accidents through over head lines; help minimize compensation payments made for material damages and ensure compliance with the Electricity Power Current Facilities Regulation of 2000 which has increased the minimum allowable distance between overhead power lines and buildings. Technical Assistance for supervision consultants: The project will also finance supervision consultants to assist TEDAS and the regional companies in managing and supervising the implementation of the investment projects. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The investment projects financed by this loan will be located in city centers, settlement communities and other urban areas whose electricity supply is provided by the following eight regional distribution companies: 1- Ayedas Regional Company 2- Uludag Regional Company 3- Meram Regional Company 4- Gediz Regional Company 5- Toroslar Regional Company 6- Menderes Regional Company 7- Osmangazi Regional Company 8- Akdeniz Regional Company The network rehabilitation projects financed by this Loan are not expected to have significant safeguard-related impacts. The projects will include works such as rehabilitation of existing equipment (transformers, capacitors etc.), replacement of low and medium overhead lines with underground cables and expansion of the network by construction of new underground cables and possibly overhead lines both at low and medium voltages. The potential impacts are considered to be minor, of limited duration and limited area. They are primarily associated with construction activities. All impacts can be readily managed with standard procedures of good engineering and construction practice. In the course of excavating the ditches to place any underground cable, there is a possibility of unearthing artifacts of cultural significance. The EMPs all include requirements to follow Turkish chance find procedures regarding cultural artifacts. During operation, the chief potential issues are effects on the public (if any) of exposure to electric and magnetic fields which also would be mitigated by burying cables at a depth to insure surface values will meet international standards.  The population of each of the respective areas will benefit from these projects. Existing electricity users will experience fewer accidents and safety risks as well as more reliable electricity supply; and consumers in expansion areas will immediately gain from the reliable distribution network. In several places, the existing overhead lines are hazardous and inconveniently located, due to inadequately planned investments. The incidence of accidents is expected to decrease markedly in project areas. There will be some temporary inconvenience as the overhead lines are buried in the streets but this should be minor. Underground cabling and rehabilitation of the network is expected to improve the reliability and safety of electricity supply in the areas during normal operation, but also during calamities like storms and earthquakes. These investments are also expected to enable the regional companies to serve more loads. Electricity tariffs may increase over time in order to cover rise in costs, and with better efficiency, bill collections should increase and illegal connections should decrease. Tariffs however are not expected to rise due to the project. No land acquisition is expected, as the underground cables will be located under public land (streets, sidewalks). Substation expansion and construction will be on land already owned and occupied by the distribution companies; they will not require land acquisition. 5. Environmental and Social Safeguards Specialists Mr Norval Stanley Peabody (ECSSD) Mr Bernard Baratz (EASTE) 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: In accordance with World Bank policies and procedures for Environmental Assessment (OP/BP/GP 4.01), the Electricity Distribution Rehabilitation Project is rated Category B. TEDAS has prepared very good quality draft Environmental Management Plans (EMPs) to mitigate and monitor potential environmental impacts of the distribution network projects financed by the Loan. TEDAS has also completed before the appraisal mission, the consultation and disclosure of the EMPs for the projects included in the first group of projects financed by loan. Consultation and disclosure of the next group projects will be  completed after the completion of their feasibility reports and before issuance of their bidding documents. The network rehabilitation projects financed by this Loan are not expected to have significant safeguard-related impacts. The projects will include works such as rehabilitation of existing equipment (transformers, capacitors etc.), replacement of low and medium overhead lines with underground cables and expansion of the network by construction of new underground cables and possibly overhead lines both at low and medium voltages. The potential impacts are considered to be minor of limited duration and limited area. They are primarily associated with construction activities. All impacts can be readily managed with standard procedures of good engineering and construction practice. During operation, the chief potential issues are effects on the public (if any) of exposure to electric and magnetic fields which also would be mitigated by burying cables at a depth to insure surface values will meet international standards. There are no known areas that are of significance with regard to cultural properties. However, if artifacts are uncovered in the course of excavation, they would be subjected to Turkish chance find procedures, which are consistent with World Bank safeguard policy on cultural properties. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The investments will have significant positive impacts primarily through improving the safety of the distribution networks in the urban areas and increasing the reliability of the electricity supply to consumers. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. TEDAS has considered various alternative designs to prepare the least cost rehabilitation program. The alternatives included new overhead lines in replacement of the old overhead network; using aerial bunched cables; and underground cable network. Since old networks at several places are of non-standard voltage, the new network (at voltage level different from the existing network) would need to be constructed in parallel with the old network in order to keep serving existing consumers during the construction period. The right of way is inadequate to run two medium voltage overhead networks in parallel, which makes the alternative of overhead lines technically infeasible. The alternative of aerial bunched cables also would require additional supports for which right of way does not exist at several locations. In addition, the aerial bunched cable would also impact the aesthetics of tourist places and city centers and breach municipal regulations. TEDAS has finally adopted underground cabling as the optimal alternative for the expansion and rehabilitation of existing distribution network. The utilization of cabling technology in the development and operation of distribution networks is common in most Western European countries. One of the principal advantages of the underground cables in urban areas is that they improve the safety of electric facilities and reduce the environmental and aesthetic adverse impacts.  4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The Borrower has prepared high-quality environmental management plans (EMPs) after due consultations in the areas where projects are proposed. The EMPs have also been disclosed on the website of TEDAS. The EMP requirements will be part of the bidding documents, and will be regularly monitored by TEDAS staff supported by supervision consultants. The quality of the EMPs, and the quality of consultations demonstrate that there is adequate capacity and appreciation of safeguards issues among TEDAS staff. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Key stakeholders are the people living in the vicinity of the project areas and the regional distribution companies. TEDAS has conducted public notifications, consultation and disclosure for the investment projects included in the first group of projects financed by the loan. EMPs, along with their consultation and disclosure, of other project financed by the loan will be completed after their feasibility reports are prepared, closer to the time of implementation. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Date of receipt by the Bank 05/29/2006 Date of "in-country" disclosure 06/19/2006 Date of submission to InfoShop 06/20/2006 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Sector Manager (SM) Yes review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the Yes credit/loan?  The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Yes Infoshop? Have relevant documents been disclosed in-country in a public place in a Yes form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities Yes been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the Yes monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the Yes borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Sameer Shukla 03/15/2007 Environmental Specialist: Mr Bernard Baratz 03/20/2007 Social Development Specialist Mr Norval Stanley Peabody 03/22/2007 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Ronald N. Hoffer 03/22/2007 Comments: Cleared for safeguards Sector Manager: Mr Peter D. Thomson 03/22/2007 Comments: