INTEGRATED SAFEGUARDS DATASHEET
APPRAISAL STAGE
I. Basic Information
Date prepared/updated: 05/31/2006 / Report No.: AC23771. Basic Project Data
Country: Madagascar / Project ID: P095240
Project Name: Power/Water Sectors Recovery and Restructuring Project
Task Team Leader: Stephan Claude Frederic G
Estimated Appraisal Date: May 19, 2006 / Estimated Board Date: July 13, 2006
Managing Unit: AFTEG / Lending Instrument: Adaptable Program Loan
Sector: General energy sector (100%)
Theme: Infrastructure services for private sector development (P)
IBRD Amount (US$m.): 0.00
IDA Amount (US$m.): 10.00
GEF Amount (US$m.): 0.00
PCF Amount (US$m.): 0.00
Other financing amounts by source:
BORROWER/RECIPIENT 1.00
1.00
Environmental Category: B - Partial Assessment
Simplified Processing / Simple [] / Repeater []
Is this project processed under OP 8.50 (Emergency Recovery) / Yes [ ] / No [ ]
2. Project Objectives
2.1 The aim of the project is to restore an adequate public utility service for electricity and water in urban areas of Madagascar and to create the foundation for a sustainable expansion of a commercially-oriented service in the most cost-efficient way.
3. Project Description
3.1 To address immediate technical shortcomings in the utility, JIRAMA has identified a short term investment plan estimated to cost approximately US$100 million for electricity and US$100 million for water, to lower the cost and improve the performance of its generation plants, cut technical losses and improve commercial performance. The Bank, in coordination with other donors would finance some of the most pressing and high-priority investments of this recovery plan. This is the centerpiece of APL-1. Specifically, the program would assist with:
(a) reduction of generation costs: rehabilitation of existing hydroelectric and thermal units, as well as conversion of some diesel generators to heavy fuel oil;
(b) reduction of technical losses in transmission and distribution: upgrading of key sections of MV lines, replacement of overloaded transformers and undersized distribution lines and cables;
(c) improvements to metering, billing and revenue collection: meter verification and replacement, high-value customer management, updating of customer records, introduction of prepayment meters and spot metering techniques in selected clusters.
(d) modernization of JIRAMA's information systems and IT equipment: installation of a company-wide computer network and associated hardware and software.
3.2 Only the most pressing needs of the electricity sector would be covered by APL-1, which is entirely focused on restoring JIRAMA to a minimum acceptable level of operational and financial performance, an essential precondition to attracting a private firm. The specific investments to be financed have been selected on the basis of their short payback periods and high impact on JIRAMA's earnings.
3.3 APL-1 would also support the long-term objectives of improving the electricity and water sectors'performance by assisting Madagascar in providing funds: (a) for complementary actions needed to accompany the transaction advisor (IFC) in the process of selecting and contracting a new private operator to take over JIRAMA; (b) for prolongation of the current management contract to avoid any hiatus before the takeover by the selected strategic partner; (c) TA to the Ministry of Energy (MEM) to steer the above process to a successful outcome and for capacity building within MEM; and (d) the technical and safeguard studies required for APL-2 as well as the due diligence requirements for private hydro generation investments to be eligible for IDA-backed guarantees in a subsequent PRG operation currently under preparation.
"In light of the forthcoming selection and contracting of a new private operator to take over JIRAMA at the end of the current management contract, the Government will prepare an environmental audit to address environmental, social and safety issues and liabilities resulting from JIRAMA's operation. Also under this component, the preparation of relevant safeguard studies (ESIAs with EMPs and RAPs, as applicable) for the Phase 2 will be conducted and submitted to ASPEN for review and clearance."
Phase II (or APL-2) of the Program
3.4 The funding needs for APL-2 (FY2009-2011) from IDA would tentatively be about US$30 million, covering investments in generation, transmission and distribution system expansion, as well as capacity building and consulting services for implementation of the institutional reform of the sector. The second phase would be conditioned on satisfactory progress towards financial recovery of JIRAMA and a signed PPP agreement for the long-term management of the utility by a private firm.
4. Project Location and salient physical characteristics relevant to the safeguard analysis
The project concerns the generation rehabilitation, the distribution reinforcement and rehabilitation of the existing lines in the various towns in Madagascar. The project therefore affects positive impacts on the urban populations, populations of secondary town.
5. Environmental and Social Safeguards Specialists
Ms Kristine Schwebach (AFTS1)
Mr Amadou Konare (AFTS1)
Mr Paul-Jean Feno (AFTS1)
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:
(a) Rehabilitation of thermal power station
Rehabilitation of thermal power station of Ambohimanambola, Mahajanga, Toamasina, Toliary, Antsiranana consist of the replacements of group or spare parts, with rehabilitation of the circuits and auxiliaries and with a general revision of groups.
The environmental examination of the projects related to the rehabilitation of power station reveals that the environmental impacts are generally neutral. However, their impacts cannot be considered independently from the whole installations and the current environmental situation in which they are. The main impacts are the noise, the atmospheric emissions, the pollution of the ground and water because the management of the effluents is not efficient, and the danger and risk management: absence of emergency plan.
(b) Rehabilitation of hydroelectric power station
Rehabilitation of hydroelectric power station of Antelomita 1, Ankazobe, Tsiazompaniry, Vatomandry, Andekaleka and Volobe, consist of replacement of the used parts, of wheel of turbine, "hydrorefrigerants"; of general revision of group, alternator; and, of restoration of the equipment and the rehabilitation of the civil engineering works.
The analysis of the environmental impacts of the projects came up to the conclusion that impacts are non-significant and reversible except for the environmental impacts of the restoration of the civil engineering works planned for the hydroelectric power station in Vatomandry. In the meantime, a detailed attention is to be granted to the transformers in which the PCB (Polychlorinated Biphenyl) represents environmental risk. The Malagasy Environmental Administration with JIRAMA and the coordination committee of POP (Persistent Organic Pollutant) supported by the UNEP, elaborate the national action plan for the elimination of the POP. Now, JIRAMA ensures the storage in safety of the old transformers.
Rehabilitation of power lines
The projects of rehabilitation of power lines relate to the rehabilitation of the distribution networks MT and BT of the interconnected network of Antananarivo (RI Tana) and some centers, the rehabilitation of the line of transport of 63kV of RI Tana. These projects include the reinforcement of the networks, the replacement or the permutation of the transformers as well as the replacement of the faulty equipment. The current problems especially deal with acts of vandalism, the rust of the pylons of the line 63kV and the outdatedness of the equipment. Generally, the probable environmental impacts are non significant for the line of transport 63kV.
2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area:
There are no significant safeguards risks at the rehabilitation of power station, rehabilitation of power lines, and reinforcement of the drinkable water conveyances. The environmental impacts are generally neutral. However, projects like their impacts cannot be considered independently from the whole installations and the current environmental situation in which they are. With reinforcement of the drinkable water conveyances, the significant risk are the environmental impacts of the restoration of the civil engineering works planned for the hydroelectric power station in Vatomandry and the PCB (Polychlorinated Biphenyl) within the transformers.
3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts.
There are no project alternatives considered because the project concerns the rehabilitation, the reinforcement of the existing infrastructures and materiel.
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.
Rehabilitation of hydroelectric power station
For the hydroelectric power station in Vatomandry (192KW), JIRAMA must meet the requirements of the safeguard policy OP 4.37 on the Safety of Dams. This rehabilitation will be realized only after an expertise report on the dam safety, carried out by an independent expert, judged satisfactory to IDA.
5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people.
In the context of the project, the Borrower prepared an ESMF, which has been approved by ASPEN and disclosed in-country and at Bank Infoshop on May 17, 2006; The elaboration of ESMF followed a broad based public consultation involving all relevant stakeholders groups throughout project's preparation.
B. Disclosure Requirements DateEnvironmental Assessment/Audit/Management Plan/Other:
Date of receipt by the Bank / 05/26/2005
Date of "in-country" disclosure / 05/16/2006
Date of submission to InfoShop / 05/17/2006
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 AssessmentDoes 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
OP/BP 4.37 - Safety of Dams
Have dam safety plans been prepared? / Yes
Have the TORs as well as composition for the independent Panel of Experts (POE) been reviewed and approved by the Bank? / Yes
Has an Emergency Preparedness Plan (EPP) been prepared and arrangements been made for public awareness and training? / 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
D. Approvals
Signed and submitted by: / Name / DateTask Team Leader: / Mr Stephan Claude Frederic Garnier / 05/30/2006
Environmental Specialist: / Mr Paul-Jean Feno / 05/30/2006
Social Development Specialist / Ms Kristine Schwebach / 05/30/2006
Additional Environmental and/or Social Development Specialist(s): / Mr Amadou Konare / 05/30/2006
Approved by:
Sector Manager: / Mr Philippe Charles Benoit / 05/31/2006
Comments: