Colombia - Amoya River Environmental Services Project

as~o* Integrated Safeguards Data Sheet Section I - Basic Information Date ISDS Preparedludated: A. Basic Project Data (from PDS) COUNTRY: Colombia PROJECT ID PO-78220 PROJECT: Amoya River Environmental TTL: Walter Vergara Services APPRAISAL DATE: 5/20/2003 EBRD AMOUNT ($m): Not applicable BOARD DATE: Not applicable IDA AMOUNT ($m): Not applicable ERPA DATE: IO/ 15/12003 MANAGING UNIT: LCSFE SECTOR: Renewable energy (100%) Climate change (P) LENDING INSTRUMENTS: CF (Carbon STATUS: There is no Bank lending or Finance) Grant envisioned. The Carbon Finance Unit will support the project through carbon emission reduction credits valued at US$17.8 million over the life of the __ _ project. Project Objectives (From PDS) The development objective of the Rio Amoya Environmental Services Project (Amoya Project, or AP) is to contribute to the reduction of greenhouse gas (GHG) emissions from the power sector in Colombia through the promotion of a 78 MW run of river generation facility. The project is expected to displace an estimated 8.78 million metric tons of carbon dioxide equivalent (mtCO2e) over an initial period of 14 years and will also support an environmental program in support of the protection of the Paramol Las Hermosas and a social program that will contnbute to improvements in the welfare of the local community. The Paramo is a unique wet ecosystem, of the northern Andes region, that appears at altitudes of 3,500 m and higher; the flora of the Paramo acts as a sponge capturng moisture from the atmosphere and releasing it in a controlled manner to feed downstream rivers and lakes.  Project Description (From PDS) The project supports three activities (components) a) A run of the nver power plant, with a nominal capacity of 78 MW and an anticipated generation of 546 GWh/year. The turbines and other ancillary facilities will be installed underground, along one side of the nver, thus minimizing impacts on the landscape. The po%%er plant will be connected to the grid through an 18km transmission line. The plant is expected to be in operation by the second half of 2005. Support will be pro- idedl through the purchase of ghg emission credits. b) Environment program for protection of the Piramo. The environmental program will include activities to support the long term sustainability of the ecosystem of the Paramo region and to divert anthropogenic interventions induced by global warmung These activities will be developed in consultation with the local community and are expected to include: i) a green employment, community-driven program that opens and maintains alternative occupations (reforestation, organic and conservation agriculture, water sanitation) targeted to improve environmental management in the area; and ii) a program of environmental education and awareness, on the services and role that the Paramo plays to sustain livelihoods in the area. Both programs will be outside of the boundaries of the National Park of Las Hermosas. The environrmental program will be financed with 10% of the value of the carbon credits and a matching grant from Conservation International. c) Social program. The social program will include activities defined in consultation with the local community (Municipality of Chaparral) and will be put in place during construction and the first two years of operation of the plant. The program will include health, education and other social services designed to improve the quality of life of the inhabitants in the area of influence of the project. The social program will be financed with 10% of the value of the carbon credits. Project Location (Geographic location, information about the key environmental and social characteristics of the arca and population likely to bc affected, and proximity to any protected areas, or sites or cntical natural habitats, or any other culturally or socially sensitive areas ) The Project will be located in the lower range of the Amoya River. The AMOYA River Hydroelectric Project, in the municipality of Chaparral (Tolima). The region is downstream of the Paramo de Las Hermosas, an ecosystem that occurs around the Amoya River Basin, and the source of the AMOYA River. The Municipality of Chaparral is located south of the department of Tolima at the Colombian Central Andes at an altitude ranging from 800m to 4500m. Chaparral has a population of 41,052 habitants, 51% of which live in urban areas. In the rural areas, the main activities are agnculture, with the most important crops being coffee, sugar cane, corn, and cattle. B. Check Environmental Classification A [ ], B [ X}, C [ 1, Fl [ J, TBD [ ]  * Comments: The project will contribute to sustainable development in various ways: * It will demonstrate the potential for run of river facilities as an alternative to standard hydro and thermal based plants, facilitating the further development of this option in the country. * It will contribute to the reduction in the emissions of local crieria pollutants (such as NOx, SOx, particulates and volatile hydrocarbons) which would otherwise be released through thermal-based power generation. The exposure of populations to these pollutants has been linked to health effects and associated increases in mortality and reductions in productivity. * It will add to the national private expertise in the installation and operation of on-grid run of river based power generation technology and strengthen institutional capacities with regards to national participation in international carbon markets. * Through the effective promotion of the run of river option, it will increase technology diversification in the power sector, enhancing the robustness of the power system and contributing to the security and reliance of supply. * It will demonstrate the potential for valuing environmental services in the region, in particular through recognition of the role that Paramo ecosystems play in power generation and facilitate investments in its conservation and protection. * Additionally, the Social Program will benefit the local population at the site addressing key local welfare issues and ensuring ownership and participation of the local community in the project. * Successful implementation will serve as an example of a new form of public-private partnership and community involvement for economic and social deve opment. Public funds will be used efficiently to leverage private investment in the energy sector. C. Applicability of Safeguard Policies (from PDS) Click on Policy name for bnef summary of objectives, triggers and requirements Click on Policy reference number for full polic Yes No TBD Environmental Assessment (OP/BP/GP 4 01) [ X] [] [I 1 Forestry (OP/GP 4 36) [ ] [X] ] Natural Habitats (OP/BP 4.04) [X I [1 I I Safety of Dams (OP/BP 4.37) [ ] [X] tI Pest Management (OP 4.09) [1 [ X] ]I Involuntary Resettlement (OD 4.30) [ ] _ H [ XI Indigenous Peoples (OD 4.20) [] [x I I Cultural Property (OPN 11.03) [] [ I x] Projects in Disputed Areas (OP/BP/GP 7.60) [] [X] l] By supporting the proposed project, the Bank does not intend to prejudice thefinal determinatwon of thte parties' claims on the disputed areas  Projects on International Waterways (OP/BP/GP 7.50) [I [X I I[] Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues Pleasc fill in all relevant questions If information is not available, dcscribe steps to be taken to obtain necessary data 1. Descnbe any safeguard issues and impacts associated with the proposed project Pelton turbines with vertical axis and a rated capacity of 39.8 MW each will be used to generate power making use of the kinetic energy carried by the fast flowing stream and the potential energy between the entry points and exit points of the tunnel. This will obviate the need for water storage and the use of reservoirs, therefore avoiding potential environmental and social impacts in the area. The power unit and the civil works will be. underground, therefore minimizing any impact on the landscape. A temporary access road will be constructed to reach the site but it will be reverted to natural landscape after construction. A transmission line will be built to connect the project site with the national grid. An environmental impact assessment has been prepared addressing any potential impact in the region caused by the project. This EIA is under review by the Bank and will be submitted by end of February 2003. Regarding social impacts, a preliminary EIA was conducted. Currently, Generadora Unton is carrying out a detailed social impact assessment. Through this study, those impact will be identified and assessed deeply. According to the results of this study, a Social Management Plan will be prepared. In case some of the social safeguards policies are triggered, adequate measures will be design to comply with the Bank's policies. 2. Identify and describe any potential large scale, significant and/or irrever