Telecomunicaciones Movilnet C.A.

completed

Environmental Review Summary (ERS)Project Name: Venezuela- MovilnetRegion: Latin AmericaSector: TelecommunicationsProject No.: 008210 1. The project is to help finance Movilnet’s capital expenditure program for 1997 and 1998. The program consists of: expanding the mobile cellular network throughout the country; providing new services to Movilnet subscribers; and continuing the program to install digital technology. A key aspect of the expansion program is to expand existing coverage in Caracas, and expand the network to the eastern and western regions of the country, and to the major mining and oil production areas, and the major interstate roadways. Movilnet was created in 1992 as the wholly-owned cellular and paging subsidiary of CANTV, Venezuela’s national and international telecommunications carrier. IFC provided CANTV with long-term loans in 1996 for modernization and expansion of the CANTV wireline network and for financial restructuring. An Environmental Review Summary for IFC’s investment in CANTV was released to the Bank’s Public Information Center in March 1996.2. This is a category B project according to IFC''s environmental review procedure because specific 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. The following key environmental, health and safety issues that were considered in this project include: · microwave tower site selection;· right-of-way (ROW) alignment; and· land use modification.3. Laws in Venezuela applicable to right-of-way (ROW) establishment are well developed. Movilnet’s ROW activities will, in addition to complying with applicable World Bank policies and guidelines, be required to abide by the following Government Laws:· Right -of-Way and Electric Conductors Law;· Environmental and Organic Law;· Law of Public and Common Lands;· Law of Conservation and Maintenance of Public Works and Installations; and· Forest Law of Land and Water.- 2 -Movilnet has confirmed that no new ROW or other structures such as transmission stations are to be created/constructed in National Parks or other sensitive areas without first obtaining Government authorization. In addition, no rainforest will be disturbed. No resettlement of people is anticipated as part of necessary land acquisition. For any new ROW or other structures (e.g., cellular or microwave towers) traversing or located in National Parks or environmentally sensitive areas that may be established in the future, Movilnet has committed to providing IFC with a ROW impact mitigation plan for clearance by IFC prior to implementation of the respective plan. These plans must address the following issues:· ROW Alignment: Information must be provided detailing: what environmentally sensitive areas will be traversed (e.g., forest, mangroves, national park etc.); what the environmental impacts will be; and how these impacts will be mitigated. Measures to prevent the use of rights-of-way by non-authorized personnel must be identified. Construction and maintenance will take into account erosion and sediment control.· Resettlement: If land acquisition is to take place or if resettlement will occur, Movilnet must provide IFC with a resettlement plan and/or summary of the compensation mechanisms for loss of land incurred. In the case of resettlement of people, the resettlement plan should: (i) identify the number of people that will be displaced; (ii) identify where they will be resettled; (iii) how they will be compensated and rehabilitated; and (iv) identify how this will be equitably achieved.4. There are 21 existing transmission stations located within national parks. Site selection for these stations was conducted in coordination with National Parks authorities, all sites are situated along existing roads within the parks. Several of these stations required construction of short (approximately 300 m) access roads. Permission to construct these roads was obtained from park authorities; maintenance of roads as per park requirements will be the responsibility of the sponsor. These installations include small structures housing electrical equipment and small stand-by generators. Fuel stored on site is provided with secondary containment. Noise and air emissions from generators is minimal and not constant, as generators are only used when power from the national grid is not available. Exhaust systems are equipped with filters to capture particulate matter. No equipment containing PCB is present at these sites. The sponsor will also implement the collection of used motor oil from the stations for recycling.5. Solid and liquid waste generated as part of construction and normal operations will be disposed of in accordance with local requirements. Where feasible contractors will be required to recycle waste.- 3 -6. With regard to fire safety, the company will adhere to the requirements of the Venezuelan Industrial Security Manual. Employees will be trained in emergency response procedures and provided with safety equipment as appropriate. Existing halon-based fire fighting equipment and CFC-based cooling equipment (if any) will be phased out in accordance with Venezuela’s commitments to the Montreal Protocol. No new halon or CFC based equipment will be installed as part of the project.7. The sponsor will monitor all work areas for ambient noise and air quality. Employees will be provided with the necessary protective equipment. Numerous training courses covering such topics as first aid, industrial security, electrical risks, and explosimetry will be conducted.8. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures and commitments, IFC concludes that the proposed project is being designed to meet Government of Venezuela requirements, and World Bank policies, and environmental, health and safety guidelines.9. IFC will monitor Movilnet’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.