Turkey - Electricity Distribution Rehabilitation Project

Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 06/27/2006 Report No.: AC2383 1. Basic Project Data Country: Turkey Project ID: P096801 Project Name: Electricity Distribution Rehabilitation Project Task Team Leader: Ranjit J. Lamech Estimated Appraisal Date: June 12, 2006 Estimated Board Date: August 29, 2006 Managing Unit: ECSIE Lending Instrument: Specific Investment Loan Sector: Power (100%) Theme: Other urban development (P);Infrastructure services for private sector development (S) IBRD Amount (US$m.): 380.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER 76.00 Financing Gap 0.00 76.00 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] 2. Project Objectives The Project Development Objective is to improve the reliability of power supply to 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 for distribution network rehabilitation and expansion in the TEDAS regional companies of Ayedas, Uludag, Meram, Gedez, Toroslar, Menderes and Osmangazi. 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 voltages and their conversion to underground cables. 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 Page 2 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 provide by the following seven 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 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 implementation of the investment projects will not require the acquisition of private land. Underground cables will all be located under city streets owned by the Municipalities. The transformer substations upgrades or expansion will be carried out on Page 3 existing substations or land that is owned by TEDAS or by the Municipalities. Therefore, the projects financed by this Loan will not entail any resettlement and the project will not trigger OP 4.12, Involuntary Resettlement. 5. Environmental and Social Safeguards Specialists Mr Norval Stanley Peabody (ECSSD) Mr Bernard Baratz (ECSIE) 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 Cultural Property (OPN 11.03) 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. Page 4 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. Page 5 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 Cultural Property, 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) review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes Page 6 D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Ranjit J. Lamech 06/20/2006 Environmental Specialist: Mr Bernard Baratz 06/20/2006 Social Development Specialist Mr Norval Stanley Peabody 06/20/2006 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Ronald N. Hoffer 06/21/2006 Comments: Sector Manager: Mr Peter D. Thomson 06/27/2006 Comments: