Manzanillo International Terminal - II (Parent Proj. #4214)

completed

- 4 -International Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name PANAMA: Manzanillo International Terminal - II (MIT-II)Region Latin America and the CaribbeanSector InfrastructureProject No. 0095741. This project involves the expansion of an existing container port terminal in the Port of Manzanillo, located on Panama’s Atlantic coast near the entrance to the Panama Canal at Colon. IFC is an investor in the original project, which was approved in December 1994 (IFC/R94-265). Since operations began in April of 1995, the terminal has established itself as one of the most productive and efficient ports in the world with container handling volumes having increased more than fourfold. The expansion, which would increase the container handling capacity of the Port from 600,000 to about 900,000 moves annually, includes:· extension of the wharf and dock areas· expansion of the container yard· renovation/expansion of existing buildings· improvement of associated utility infrastructureMore than 50 hectares of additional land adjacent to the existing 40 hectare site, a former United States Navy seaplane base, will have to be developed by MIT to accommodate the expansion. Electricity is supplied through the existing power grid. The terminal also operates four enclosed diesel-fired generators for back-up electrical power. Potable water is provided by the local public (Colon) system. Almost 800 people, including 110 security personnel, are currently employed.2. This is a category B project according to IFC’s environmental review procedure because a limited number of specific environmental impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor and a site visit by IFC’s technical and environmental department staff. The following potential environmental, safety and health impacts of the project were analyzed:· contamination from past uses· vegetation protection and reforestation· stormwater management· dredging· oil/hazardous materials storage and handling· hazardous cargo management· solid and liquid waste management· sewage treatment· fire prevention and emergency response· employee health and safety and training programs· EHS organization and managementThe company has presented plans to address these issues and demonstrate that the proposed project will comply with applicable Panamanian and World Bank requirements. The information about how these potential impacts will be addressed by MIT is summarized in the paragraphs that follow.3. Contamination Clean up From Past Uses. A Preliminary Site Assessment of the new parcels of land needed for the expansion project identified three potential contamination issues: eight 25,000 gallon underground oil storage tanks (USTs) formerly used by the U.S. Navy; scattered piles of debris and empty drums on undeveloped land; and asbestos containing materials in the former high school buildings being renovated for use as offices. The USTs were excavated and removed in March 1999, and no evidence of residual contamination was found. MIT has not yet removed the debris and empty drums, but has plans to do so. Small amounts of asbestos were found in floor tiles (2%) and in cold water pipe insulation (10%) in the high school buildings. MIT will repair, contain and/or remove these materials during the building renovation process, as appropriate, and will continually monitor and maintain them to prevent release of asbestos fibers to the environment.4. Vegetation Protection and Reforestation. MIT recently completed (and received approval from Autoridad Nacional del Ambiente -- ANAM) a reforestation program in compensation for clearing 53 hectares of secondary rain forest, bushes and mangroves under the original Terminal project. No similar activities will be necessary for the expansion project, as none of the additional land to be developed will involve disturbing this type of forest land, or other similar natural terrestrial environments. Pursuant to Panamanian law, MIT has conducted, or is conducting, environmental assessments of the additional land parcels to be developed for ANAM’s approval, and will implement appropriate vegetation protection measures, as required.5. Stormwater Management. MIT is in the midst of a program to improve the terminal’s existing storm drainage system to alleviate local flooding problems caused by storm run-off, and to provide adequate drainage for the run-off from the new areas of the site being developed. The new drainage system is designed to handle 10-year storm flows, and will be completed by March 2000. Sediment collected in the system will be periodically removed by MIT using a newly purchased vacuum-type tanker truck.6. Dredging. MIT has already completed the dredging activities required for the expansion project. The program, which involved the preparation (and submission to the National Maritime Port Authority, AMP) of appropriate studies (hydrography, planimetry, topography) and plans to minimize turbidity at the dredge site, removal of 200,000 cu. m. of dredge spoil, and ocean disposal at a site designated by the Panama Canal Commission (PCC), Dredging Division north of Manzanillo Bay and approximately 3 km offshore. AMP approved this program. Future dredging activities will include chemical analyses of the sediments prior to disturbance to ensure that any toxic contaminants are below concentrations of concern to fish and shellfish that might be exposed during dredging and disposal activities.7. Oil/Hazardous Materials Storage and Handling. Hazardous materials are only an incidental part of the Terminal’s operations. Diesel oil is stored on-site and used as fuel for standby power generation and for eight diesel-operated ship-to-shore gantry cranes. Small amounts of paints, solvents and petroleum lubricants are used for maintenance and repair activities; and batteries are used to operate certain equipment (forklifts, etc.). Accordingly, MIT has established designated, dedicated storage areas with adequate containment and spill control features for all of these materials. Paints, solvents, batteries, and lubricants are stored in designated areas within the recently completed, new maintenance and repair shop building. Diesel oil is stored in the concrete-diked and floored tank farm.8. Hazardous Cargo Management. Some of the containerized cargo handled at the terminal (less than 1% of the total throughput) is considered to be hazardous under the International Maritime Code (IMC). This material includes flammable gases, poisons, flammable liquids, corrosives, reactive and spontaneously combustible substances, oxidizing substances, etc. Containerized hazardous cargo are stored by material class in segregated areas within the container storage yard with good access to containment resources and emergency response equipment; no radioactive materials or explosives are handled. The majority of containers with dangerous cargoes are handled as full containers, and the inventory is monitored continuously.9. Solid and Liquid Waste Management. Wastes managed at the terminal consist primarily of waste oil, domestic waste, and construction debris. Waste oil is stored in a waste oil tank located inside the diked, diesel tank farm, and is recycled back to the local Texaco refinery. Domestic solid waste is collected by the local, Colon sanitation authorities (DIMA), and disposed at the local public landfill in Mount Hope. Construction debris is also disposed at this landfill. MIT does not manage any ship-generated wastes. These are all handled by a private marine pollution control concession awarded by the Port Authority, and are not the responsibility of MIT. Wastewaters generated during container washing activities are separately collected and treated in an oil/water separator fitted with an ozone treatment system, and is recycled. Waste oils removed from the treated washwaters are managed with the other waste oils.10. Sewage Treatment. Currently, and since project inception, MIT has relied upon an existing, publicly owned and operated sewage treatment plant for the management of the sanitary wastewaters it generates. Originally designed to serve the former military base and associated residential areas, this primary treatment plant is located in the immediate area of the terminal site and discharges to a public drainage canal which, in turn drains to Manzanillo Bay. To comply with the new Panamanian regulatory requirements, MIT is constructing its own new sewage plant (and ancillary pumping station) to replace this old treatment system. Scheduled to be completed by the end of 1999, MIT’s new plant will treat terminal sanitary effluents to secondary levels prior to discharge to the Bay, and therefore, meet Panama and current World Bank requirements. The 200,000 gallons per day capacity, secondary biological treatment process plant will be owned and operated by MIT, who is seeking appropriate approvals and licenses to operate from the national environmental authority: ANAM.11. Fire Protection and Emergency Response. MIT has had procedures, trained personnel, and equipment in place for responding to emergencies, including fire, chemical spills and mishaps, accidental release of petroleum products, and medical emergencies. Activities are coordinated with the local Colon Fire Department and the Panama Canal Commission Emergency and Hazardous Material response teams. MIT recently developed a Terminal Emergency Action Plan (June 1999) which provides:· Procedures for Plan review, periodic training of employees, schedules for drills, and a EAP Planning Committee function· Spill record-keeping requirements· Procedures for conducting annual “area threat analyses”· Description of the Emergency Response Organization· Description of Hazardous Material Cargo Segregation Program· Documentation and reporting requirements (including notification requirements and contacts, incident reports and post incident reviews)· Emergency equipment inventory· Resource and agency directory · Internal and external communications planIt is important to note that the National Port Authority (AMP) is responsible for responding to general shipboard emergency response needs in Manzanillo Bay (through a marine spill response concessionaire).12. Employee Health and Safety. MIT has implemented programs to ensure the health and safety of all employees. Personnel are issued appropriate Personal Protective Equipment (PPE), are briefed on its mandatory use, and are regularly monitored to ensure it is used properly. Safety rules and guidelines have been established and are regularly communicated to employees through internal circulars and training programs. All new employees receive a basic safety and security presentation and regular training is conducted for first aid and CPR, fire fighting, and emergency response. A Safety Committee has also been established (and chaired by the Safety Manager), and meets monthly to discuss employee safety issues. MIT is currently completing construction of a new, on-site medical clinic for improved services to employees in case of accidents and emergencies, as well as the installation of a terminal exercise and fitness center.13. EHS Organization and Management. Most environmental management activities are the responsibility of the Construction and Facilities Manager. The HR Manager has responsibility for employee training programs. Health and safety is the responsibility of the Safety Manager. All of these individuals report to the Port Administrator, who is ultimately responsible for ensuring adequate management of EHS recordkeeping, monitoring and reporting activities.14. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that MIT’s proposed project would meet World Bank environmental, health and safety policies and guidelines and Panamanian requirements.15. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by MIT and by conducting periodic site reviews during project supervision.