HUNGARIAN TELECOMMUNICATIONS COMPANY LTD II

completed

HUNGARY: Hungarian Telecommunications Company Ltd. (HTC)Environmental Review Summary (ERS)1. This project involves the modernization and expansion of HTC, the largest telephone company in Hungary, which IFC assisted in privatizing in December 1993. The expansion and modernizatiuon involves increasing the number of lines in the network, automation of manual exchanges, installation of two international digital switches, completion of computer software support system installation, and further development of the national fiber optic network. 2. This is a category B project according to IFC''s environmental review procedure because a limited number of specific environmental impacts may result from construction activities. Key environmental issues that were considered during IFC''s environmental review of the reject included: • right-of-way alignment; • storage and disposal of polychlorinated biphenyls (PCBs); · solid waste disposal;· general employee health and safety issues; and· fire protection.3. HTC had conducted an environmental audit of it’s operations in 1993. The audit report was reviewed by IFC and found to be consistent with applicable World Bank policies and guidelines. More recently, in November 1994, HTC facilities were inspected by the Ministry of Environmental Protection and Development (MEPD). Deficiencies, primarily associated with hazardous and non-hazardous material storage and disposal, were identified. These materials include batteries and battery acid, condensors containing PCBs, used oil, paint residues, tar residues, spent fluorescent lamps, and various chemicals. Based on their site visit, the MEPD has required HTC to dispose of these materials through locally authorized agencies within calendar year 1995. HTC is now implementing control and disposal of these materials, and is required to report to IFC on this issue at the end of the year. address these issues. HTC has indicated to IFC that all disposal of materials by locally authorized agencies involves either recycling, incineration, chemical treatment, or storage.4.. While HTC has electrical equipment containing PCBs, no PCB based equipment has been installed since 1991. Existing PCB based equipment and storage of PCBs is being phased out and disposed of as per Hungarian requirements and as outlined above. There are transformer sites for power supply to HTC, whether these are PCB based is not clear, in any case these installations are owned and operated by local power suppliers. HTC will ensure that all PCB based equipment will be phased out in accordance with local and national laws, and HTC have committed to the handling of all PCBs and PCB based equipment as per the requirements of applicable World Bank policies and guidelines which have been provided to HTC.5. HTC will be installing fiber optic and wireline systems. Right-of-way for these lines will be determined in coordination with local and national authorities. All cable laying is required, as per Hungarian Law, to be at a minimum depth of 80 cm, and all land disturbed by cable laying activities must be restored to it’s original condition.6. HTC stores diesel and fuel oil for back-up power and heat generation purposes. All fuel is stored in underground tanks or secure rooms. Fire safety associated with these areas and overall fire protection involves use of halon -free systems. Appropriate staff are trained in emergency procedures, and fire protection is regulated as per the requirements of MT law 14/1973 (VI.2.) and BM 3./1980 (VIII.30.)..7. HTC worker safety programs are designed around the requirements of specific and comprehensive Hungarian labour safety laws. These laws (Hungarian Code XCIII./1993) are consistent with World Bank health and safety requirements and relate to training and provision of personal protective equipment. Issues relate mainly to safety around electrical equipment and operation of heavy equipment.8. The sponsor will annually submit to IFC a monitoring report outlining the environmental performance of the project. HTC has a full time staff member whose sole responsibility is to monitor the environmental performance of HTC, and implement corrective action as necessary.9. Based on the information provided, IFC''s Environment Division anticipates that this project will comply with applicable World Bank environmental, health and safety policies and guidelines, and host country requirements.