IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social 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/social information submitted by the project sponsor. The following potential environment, health and safety, and social impacts of the projects were analyzed: - site acquisition and possible economic and/or physical displacement; - environmental conditions of existing buildings and sites; - affects on cultural property; - source and adequacy of water supply; - sewage treatment and disposal; - waste/garbage management and disposal; including hazardous wastes from labs; - use of asbestos-containing building materials and CFC refrigerants; - fire and life safety; - employee general health and safety training.

The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements - Peruvian laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. - Project Description, Site Selection and Land Acquisition USMP plans to expand the Communication Sciences Campus; construct and equip a new building for the University’s Dentistry School; and upgrade the existing facilities of the University clinic at their locations in Lima. The university facilities are primarily located in the urban core of the city. The land for both the new Communication Sciences and Dentistry Buildings, was acquired through a negotiated, willing buyer/willing seller process with an individual seller. There were no other people affected by the land acquisition process. The Communication Science Center will take up a proposed 10, 000m2 and the Dentistry Building approximately 15,000 m2. A Transportation Impact Study was required by the Municipality and was completed for the Dentistry Campus, which will be reviewed by IFC. USMP has plans to expand into three provincial cities where they will build new education facilities (proposed area of facilities is in brackets). These are Chiclayo (12,000 m2), Arequipa (10,000 m2) and Huancayo (12,600 m2). The sites for these buildings have not been selected yet, but the land acquisition process will be a negotiated process with individual land owners. In most cases the facilities are located in residential neighborhoods. The university has good relationships with the communities and municipal authorities surrounding their facilities, carrying out meetings to update them of their plans. As well, USMP has a Communities Connections Program where they identify opportunities to help the local communities in which they are located. Some examples of these program include sponsorship of cultural events such as the Opera and Municipal Theatre Ballet and community programs such as: reproductive health information dissemination program; dental health check-ups for children; senior years health issues conferences and short courses for medical school neighborhood; family planning and sexual health conferences; free law advisory services in poor areas.; small and medium business management consulting; free accounting audits for small businesses in poor areas; entrepreneurship workshop for emerging businesses and vocational advice for high school seniors. - Permitting Process The university, in order to receive Municipal authorization for the project’s construction, must certify that they will be able to manage waste streams according to legal requirements (IFC has received and reviewed). As well as meeting fire regulations (see below) they must also get a safety certification of the plans from the National Authority of Civil Safety (Sistema Nacional de Defensa Civil) once the construction is completed. They then receive a final certification (Conformidad de Obra) from the municipality. This certificate requires the municipal supervisors to review the whole project and verify it actually complies with all requirements. The firefighting department must review firefighting issues and Defensa Civil issue a safety certificate which are required to get the authorization to open the facility. Once the Conformidad de Obra has been received, USMP may apply for an operations authorization (Autorización Municipal de Funcionamiento) which is required to begin using the building. The building permit includes detailed plans of water and sewage systems that must be compliant with legal requirements. - Liquid and Solid Waste USMP relies on the Municipality to collect waste and it is disposed in a land fill. They have a contract with local charities to recycle glass and paper, which is collected on campuses. Liquid effluent is also discharged to the public sewerage system and is treated by the local waste and water management service, SEDAPAL, a public company providing water and sewerage services in Lima, according to established parameters. Waste that is created at the Medical and Dental Facilities, such as needles, chemicals/anatomy used in class is disposed of according to the required procedures either as the law mandates or what the supplier recommends. One of the sites recently acquired by the university for their expansion plans, consists of an old gas station, which is still operational. IFC requires, at this time, that a survey be completed by qualified Environmental/Engineering Specialists, to assess the issue of land and/or ground water contamination from the activities and the storage tanks located on the site. This assessment and report will be reviewed and approved by IFC Environmental Specialists, and will contain a Corrective Action Plan suggesting remediation activities if necessary, which must take place prior to any construction activities on the site regarding new build. Approval of the CAP for the gas station site by IFC will be a Condition of Commitment. - Water and Electricity Supply All facilities use or will use the local electricity grid, no generators are required and water supplied by the municipal utility. The local water facility will provide USMP details on the water quality which will be forwarded to IFC for review. - Use of asbestos-containing building materials and CFC refrigerants The sponsor has committed to not using any asbestos-containing building materials in new buildings. Any other existing buildings will, in cases that asbestos exists, have it removed and replaced by appropriate materials. All cooling systems will be CFC-free. - Fire and Life Safety The sponsor is required to comply with the requirements of the IFC Guidelines on Fire and Life safety which have been issued and reviewed with them on appraisal. The sponsor needs to complete a Corrective Action Plan (CAP) to address issues of non compliance and will review this CAP with IFC specialists prior to commitment. USMP will also meet all local firefighting legal requirements which the sponsor must comply with in order to for the buildings to be authorized to open to the general public. All of the Buildings on the University's 12 campuses currently do not comply with the IFC Fire and Life Safety Guidelines to varying degrees. There appear to be three distinct categories: - the oldest buildings which do not comply in any way, having no smoke detection equipment, no acceptable alternate means of access and no acceptable fire fighting equipment; - less older buildings, some of which have acceptable alternate means of access, but no fire detection equipment and marginal fire fighting equipment; - quite recent to new (under construction) buildings, that have some fire detection equipment, some fire fighting equipment and acceptable alternate means of access. Following the disastrous disco fire in Lima in 2002, the local fire codes are being updated but currently do not require a level of compliance that would met the requirements of the IFC Fire and Life Safety Guidelines. The University's Architectural Consultants have been voluntarily working on a Corrective Action Plan (CAP) of their own to bring the University buildings on all of their Campuses up to local code and have agreed to expand that CAP to have the buildings meet the requirements of the IFC Fire and Life Safety Guidelines. The preparation of this CAP will take approximately two months for the some 30 buildings involved in all Campuses. IFC will review and approve the CAP as a Condition of Commitment. There are some 30,000 students spread over all campuses and the risk of injury or worse to these students is high considering the low standard of fire protection currently in place. - Labour Issues The minimum age for employment in Peru, and at USMP, is 18 years of age. There is no harmful child or forced labour employed by USMP. The minimum wage for USMP is almost double the Peruvian minimum wage of 460 pesos/month. USMP employees receive training on a number of issues such as induction, security and industrial hygiene, office systems, client services, writing, editorial and language skills. There are approximately 2100 employees at the various facilities and 3 million man hours were worked during 2003 with 22 lost workdays, due to 8 accidents. During the construction phase of the new facilities a total estimated 700 local people will be employed on the three main projects in Lima. - Environmental Management Systems USMP has an Internal Quality Assurance System which includes an Evaluation and Accreditation Unit. All EMS issues are managed by the local architects, PERGOLA, and Building SAC, a construction company, contracted by USMP to complete the new facilities and take care of environmental issues, which includes applying for the appropriate permits and approvals needed for the project, as required by local law.

This ERS contains the full environmental and social documentation prepared for the project.

Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation of the agreed mitigation measures.

IFC will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering: - the status of implementation of any measures contained in the Corrective Action Plans for Environmental Remediation of the Gas Station Site and the Corrective Action Plan for Fire and Life Safety - ongoing performance of project-specific environmental, health and safety and social activities, as reflected in the results of periodic and quantitative sampling and measuring programs. Periodic site supervision visits may also be conducted.