TRANSCONOR

completed

Environmental Review Summary (ERS)Project Name Argentina-Transportadora de Gas del Norte (Transconor) Region Northern and Central Argentina Sector Infrastructure Project No. 007024 1. Transconor is one of two gas transmission companies created as part of the Government of Argentina’s privatization of Gas del Estato, the state-owned gas transmission and distribution system at the end of 1992. The Transconor system is directly connected to two of Argentina’s principal gas fields in northern and central-western Argentina, and receives supplemental gas from the gas fields in Bolivia. Transconor’s principal clients are gas distribution companies which serve north and central Argentina, including the Buenos Aires metropolitan area.2. This project involves the upgrading, expansion and operation of the “Transconor” gas transmission facilities, a 4,400 km system which includes 14 compressor stations. The planned capital investment will increase the system’s efficiency and reliability as well as increase the capacity of the distribution system by 29 percent; achieved by installing parallel pipelines within the existing right of way. Additional compression at existing stations or new compressor stations may also be constructed. An existing gas-liquid recovery plant will be sold.3. 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, and the technical appraisal and site review completed by IFC’s staff. The following potential environmental, health and safety impacts of the project were analyzed:· air emissions;· liquid effluents;· disposal of waste residues;· spill prevention;· emergency response planning; and· employee exposure to hazardous substances.The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow.4. Transconor is making significant progress in implementing a Corrective Action Plan (CAP) based on the findings of an Environmental, Health and Safety audit which was conducted by an independent consultant. Most of the compressor stations transferred to Transconor at the time of the privatization used burn pits for disposal of flammable liquid wastes generated onsite from motor vehicles and compressor engines. Use of the pits resulted in air pollution and contamination of the sites. As part of the company’s implementation of its CAP, these pits will be eliminated and the contamination at the sites remediated by the end of 1997. Waste liquids will be collected in closed tanks to be installed at each compressor station; following separation of water, the waste liquids will be reprocessed and reusable materials recycled. Modular separation plants will be used to replace burn pits at two compressor stations.5. Transconor has initiated a program to eliminate diesel and gasoline underground storage tanks (USTs) at compressor stations and remediate contaminated soil resulting from leaking tanks. This program began with three USTs at the Pacheco Maintenance Base, which were replaced with aboveground storage tanks (ASTs). Purchase of oil in 55 gallon drums will also be replaced with bulk storage in ASTs. The tank removal and replacement program will be completed by the end of 1997.6. A comprehensive program of inspection, studies and audits is currently being implemented (third quarter 1995), which will include regular inspections of compressors, metering stations and maintenance bases, and the implementation of warranted corrective actions resulting from the program. 7. Spill prevention, emergency response planning, employee training and employee safety programs have been established and are being formalized in the current TGN Emergency Preparedness and Response Plan developed by the Safety, Hygiene and Environment Department.8. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the CAP, the proposed project is being designed to meet Government of Argentina requirements, and World Bank policies, and environmental, health and safety guidelines.9. IFC will monitor Transconor’s progress of implementing the CAP as well as 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.L:\WPEU\JOHN\ARGENTIN\TGN.ERSNovember 9, 1995 10:25 AM