Turkey - Third Energy Community of South East Europe (APL 3) Project

Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 01/24/2006 Report No.: AC2074 1. Basic Project Data Country: Turkey Project ID: P096400 Project Name: Energy Community of South East Europe APL 3 Project Task Team Leader: Ranjit J. Lamech Estimated Appraisal Date: January 19, 2006 Estimated Board Date: March 23, 2006 Managing Unit: ECSIE Lending Instrument: Adaptable Program Loan Sector: Power (100%) Theme: Regional integration (P) IBRD Amount (US$m.): 150.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER 30.00 30.00 Environmental Category: B - Partial Assessment Simplified Processing Simple [X] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] 2. Project Objectives The development objective of Turkey ECSEE-APL3 is: To increase the safety, reliability, efficiency and capacity of the bulk power transmission system in Turkey and to improve market access for consumers and suppliers of electricity. This objective would be achieved by: (a) Completing major 154 kV and 380kV sub-stations and network expansions in rapidly expanding urban load centers; and (b) Upgrading the transmission network supplying the urban centers of Istanbul and Izmir. 3. Project Description The project will have two components: Component 1: Transmission Network Strengthening: This component entails construction of new GIS substations and a new 380 kV underground cable to strengthen the transmission networks in Istanbul and Izmir. The new GIS substations and underground cable will increase the capacity of the transmission networks in the cities and are necessary to meet the new and growing electricity demand in their local areas. Page 2 The construction of the GIS substations and the 380 kV underground cable is necessary to strengthen the reliability and capacity of the transmission networks in Istanbul and Izmir and will as a result provide the distribution companies, eligible customers and competing energy producers with adequate and reliable access to the local transmission grid and the future ECSEE regional wholesale power markets. Component 2: Urban Transmission Network Upgrading: This component involves construction of underground cables to replace existing 154 kV overhead transmission lines in densely populated areas of Istanbul and Izmir. The 154 kV overhead transmission lines proposed for replacement with underground cables have been enveloped in rapid, uncontrolled urban expansion with sections of the lines virtually passing over roofs of houses and with right-of-ways entirely lost to encroachment by streets and buildings. The underground cable projects in the two cities included in Component 2 will have positive impact on the operation of the transmission networks and will ensure the safety of the public and reliability of the energy supply to existing and future consumers. The Athens Memorandum clearly states that the safety and security of the electricity systems and the protection of public health and safety are necessary conditions to promote the functioning of effective markets. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The identified project components are located in the urban centers of Istanbul and Izmir. For component 1 -- the work involves the construction of new sub-stations in Istanbul and Izmir, and the laying of a new underground cable. Component 2, involves the replacement of existing overhead lines with underground cables. The construction of the underground cables and new substations will have minimal potential environmental impacts that are adequately addressed through environmental management plans (EMPs). The EMPs were reviewed by the Task Team and found to be of good technical quality and met World Bank requirements. All EMPs prepared included consultation with locally affected groups and were publicly disclosed by TEIAS prior to World Bank appraisal. The routes of the underground cable projects will be follow existing municipal roads and will not require acquisition of any land. However, acquisition of small (50 to 80 sq m) land lots will be necessary for the construction of the new substations. Land to be acquired in all cases belongs to public agencies. The project is not expected to require the acquisition of private land. Underground cables will all be located under city streets owned by the Municipalities. The substations are to be constructed on land that is either owned by TEIAS or transferred to TEIAS by Turkish State Railways, TEDAS or the Metropolitan Municipality of Istanbul. Thus the project is not expected to trigger OP/BP 4.12 for resettlement or land acquisition. Nevertheless, one of the substation sites may trigger the OP/BP because third parties may be affected by the transfer of land from the Metropolitan Municipality to TEIAS. The site currently under consideration is being used by a petrol station, LPG depot and a food and snack kiosk. The three enterprises may lease the land from the Municipality or some authority. Under Turkish law the Page 3 enterprises are eligible for compensation for lost assets if they are evicted from the land and their assets are demolished. OP/BP 4.12 also requires third parties to be compensated for lost assets and the cost of relocation and transition. The Municipality is responsible for preparing the land prior to transferring it to TEIAS, as well as compensating current land users for their losses, 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 environmental policies and procedures (OP/BP/GP 4.01 Environmental Assessment) the project has been assigned