The sponsor has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific measures agreed, comply with applicable host country laws and regulations and World Bank/IFC requirements. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. Further information is provided in the attached documentation.
Corporate Performance and Capacity in the Environmental and Social Areas
. ISA Colombia has an environmental and social corporate policy and a strong team to deal with these matters. ISA Peru will contract the services of ISA Colombia to coordinate the development of ISA Peru''s environmental and social team. During the construction period, an inspector from the Colombia office is carrying out site visits every month and personnel from ISA Colombia will be deployed on a more permanent basis to Peru. ISA Peru will establish the standards and guidelines regarding environmental and social issues for any contractors that may be hired by the Company. In addition, ISA Peru will appoint a manager to cover Environmental and Social issues related to both transmission lines.
Land Acquisition and Associated Resettlement
. The construction of the transmission lines requires a 25-meter wide easement or right of way. The owners or occupants of land within the right of way will be prohibited from using the land for the construction of dwellings or any other buildings. They will also be unable to plant anything that will reach the height of the power lines, in accordance with the Electricity Code. They will only be allowed to utilize the land for lower crops such as vegetables and fruit trees.
. The easements will be established through a resolution of Ministry of Energia y Minas (MEM) called “Ministerial Resolution for the Imposition of Electrical Transmission Easements”. This resolution will be based on technical and legal information to be provided by ISA Peru, as the Concessionaire, to the Ministry of Energy and Mines. H. ABI Ingeniería, a consulting company hired by ISA’s contractor Grana y Montero (GyM), is currently assembling this information.
. In order to assemble the information required by MEM, H. ABI Ingeniería must (i) identify the owners and occupants of the land included in the right of way; (ii) verify land titles and other documents demonstrating property rights or possession rights; (iii) measure and categorize the lots affected by the easement; (iv) determine the value of the land within the right of way on the basis of the purchase price reported for taxation purposes, and updated using the consumer price indices and estimates of the market price that may be obtained in the region; (v) determine the value of the buildings within the right of way on the basis of a table used by the Ministry of Housing and Communications to value buildings and estimates of the market price that may be obtained in the region; (vi) determine the value of crops affected with the participation of an agricultural appraiser; (vii) reach an agreement with the owners and occupants on the compensation payment in order to avoid the arbitration of the National Valuation Council, which is called for by law in cases where disagreements persist; (viii) pay compensation to the affected owners after the signing of an out of court agreement with the owners or occupants (the payment must be made before a Notary Public); and produce a Final Report on the acquisition of easements.
. The Ministry of Energy and Mines will review this information and, if acceptable, will issue the Ministerial Resolution for the Imposition of Electrical Transmission Easement. ISA expects that Ministry to issue the resolution before the end of 2001. Construction activities can start prior to the issuance of the resolution, as long as ISA has obtained written authorization from the owners or occupants of the land required by such activities. The written authorization must indicate that the owner or occupant agrees with the compensation amount offered to them. Written authorizations have already been obtained from 53% of the owners or occupants of land between Oroya and Paragsha. The figure is lower for the sections Paragsha-Vizcarra (28%) and Aguaytía-Pucallpa (35%).
. Most of the land required for the expansion of substations and construction of new substations has already been acquired by ETECEN (the Government’s power company for the north central area of Peru--Empresa de Transmission de Electricidad Centro Norte) through the purchasing of land. The remaining land required was obtained as easement rights from the owners of the existing substations to be expanded. The easement rights were transferred from ETECEN to ISA Peru. Some adjustments are required in the existing easements for the Altamina substation in the Sierra region and the Aguaytía substation in the Amazon region.
. The transmission lines linking Oroya and Vizcarra and the related substations in the highlands will affect mostly idle land and pastures, while the transmission line Pucallpa-Aguaytía and the related substations in the Northeastern Amazon will affect primarily pastures, orchards and cropland. A total of 14 dwellings will be displaced by the project (five by the transmission line in the Amazon region and nine by the transmission line in the Sierra), along with four additional structures, including a church. ISA has submitted to IFC a Resettlement Action Plan (RAP) in order to ensure that the owners and occupants of land affected by the project receive adequate compensation and that the relocation of dwellings meet IFC standards.
. Of the 14 dwellings that will be displaced by the project, 12 can be rebuilt in another part of the affected land plot, but some of the owners prefer cash payment instead of rebuilding of the dwelling. ISA Peru will negotiate for the best agreement with the owners. Resettlement sites near the existing road from Pucallpa to Aguaytía need to be acquired for two dwellings that also have commercial use.
. ISA’s contractor GyM is not planning to build campsites. Instead, the company will rent dwellings for its workers in various localities with easy access and is already doing so in Cerro de Pasco, Ninacaca and La Unión. GyM will use rented buildings to store construction materials and is not planning to build permanent access roads.
Protection of Natural Habitats
. A portion of the Aguaytia-Pucallpa transmission line will run parallel to the Von Huboldt National Park (NP). This portion of the line will be built on a corridor of 6 km (3 km each side) along the stretch of the NP where activities. ISA Peru will coordinate with the NP authorities on the management of the park and its contractors will follow all the regulations established by park authorities. In addition, ISA Peru has prepared a management plan for the park which includes training for employees on the treatment of protected areas, and prohibition of hunting in the project area.
. The portion of Carhuamayo Nueva - La Oroya transmission line will run close to the Lago de Chinchaycocha (Lago Junin) which is within the National Reserve of Junin (Reserva Nacional de Junin). ISA Peru will coordinate with the "Jefatura de la Reserva Nacional Junin" to coordinate the protection of the Reserve. ISA Peru will provide training courses including environmental education in the protection of protected areas.
Management of Cultural Property
. According to the preliminary design of the 220 kV transmission line Oroya-Vizcarra, the section Paragsha-Vizcarra loosely follows the Inca Trail in an area where 20 archeological sites have been identified. ISA Peru prepared an archaeology study to assess these areas. The study found that the preliminary routing of the transmission line was too close to some archaeological sites. As result, the routing of the line was modified. The final routing in some areas is 10 km apart from the preliminary routing. During construction the "Instituto Nacional de Cultura" (INC) will monitor the construction process and impacts of the project. ISA Peru has developed a Chance Finds Procedure to be implemented in the event of any findings during construction.
. The Environmental Impact Assessment prepared for the Aguaytia-Pucallpa concluded that there are no archeological sites in the area of the Aguaytia-Pucallpa transmission line. The INC has issued a "Certificado de Inexistencia de Restos Arqueologicos" for the 138 kV transmission line project; however, ISA Peru will maintain an archaeologist on-site during the construction period and will implement a Chance Finds Procedure in the event of any discovery.
Positive socioeconomic impacts
. The 242 km 220 kV primary power transmission line Oroya – Carhuamayo - Paragsha and Vizcarra in the central Sierra region will transmit electricity generated at the main power plants in the region to mining centers, cement plants, agro-industries, and residential areas. The 131 km 138 kV secondary transmission line Pucallpa - Aguaytía in the northeastern section of the Amazon region will connect the Pucallpa power system to the national grid, which will increase the reliability of power supply to the region. The line will also contribute to the electrification of the provinces of Coronel Portillo and Padre Abad. When complete, the project will represent about 5% of the Peruvian high voltage transmission network.
Greenhouse Gas (GHG) Emission
. The project will link Pucallpa, Peru''s most important town in the Amazon region with a population of about 240,000 to the national grid, thus reducing the need to utilize power plants fired with diesel fuel. This will result in the reduction of Greenhouse Gas emission in the order of magnitude of 140,000 tons CO2/year.
Public Consultation (PC)
. Public consultation activities were carried out as part of the EIA. ISA Peru has prepared a "Programa de Informacion and Participacion Comunitaria" (Program for Community Information and Participation) for both transmission lines in order to complement previous consultation activities. As part of this program ISA Peru conducted four public consultation meetings during October 2001. These meetings enabled ISA Peru to inform various communities about the project, its impacts and the ways in which ISA Peru will address them. The meetings also enabled ISA Peru to learn about the concerns of the communities.
Worker Health and Safety Training Programs
. ISA Peru through its contractors will provide training to its employees including emergency and preparedness.
ISA Peru has prepared an Environmental Management Plan and a Resettlement Action Plan for both transmission lines.
