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: - land acquisition; - tower and base station site selection, permitting, and construction; - impacts on environmentally or culturally sensitive areas; - air emissions and noise abatement; - hazardous materials use and disposal; - solid and liquid waste treatment and disposal; - life and fire safety; - corporate environmental and social management systems; and - worker health and safety.

The sponsor has committed to address these impacts to ensure that the proposed project will comply with applicable laws and regulations of Paraguay and World Bank/IFC requirements. How these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. - Land Acquisition and site selection: Telecel's expansion plans are to add 14 new radio base stations into the network and 24 new microwave links. The proposed locations of these stations will be a mix of urban, sub-urban and rural sites. Telecel primarily leases space for its antennae and base stations from land owners through a willing lessor/willing lessee relationship. It typically places its equipment on roof tops or existing structures to avoid cost, and most sites will be located within towns or cities. Thus, changes in on-the-ground land use are likely to be minimal. - Impacts on sensitive areas: Telecel has given assurances that new installations will minimize impacts on sensitive areas, such as national parks, forests, wetlands, or cultural sites; and existing installations will be used where feasible. In identifying new sites, Telecel assesses potential impacts on the local neighborhood and minimizes them. The neighborhood is informed about the project through local meetings, and Telecel seeks the approval of these neighbors. - Air emissions and noise abatement: Existing base station and tower sites have generators and batteries to protect strategic equipment from power loss, as will new sites. The generators are housed in their own noise-insulated structures and only operate in case of power failure. All of the generators are small in capacity and are considered under World Bank Group guidelines to have minimal impact on air emissions. Telecel will follow World Bank Group ambient noise guidelines. For example, ambient noise outside the generator room must be below 45 decibels in residential areas during the night. Telecel will follow a routine preventative maintenance schedule that ensures the generators operate according to manufacturers' specifications and, thus, minimizes the air emissions and ambient noise. - Hazardous materials, waste, and disposal: All solid and liquid waste management is carried out under maintenance and operations procedures that specify containers for handling, transportation, and disposal. Contractors are required to follow these procedures. Telecel is in the process of implementing ISO 9000 quality standards, which are expected to enhance the monitoring of actual practice to improve performance, and to result in improved documentation of procedures. Solid and liquid waste generated as part of the network installation and operations is limited and will be disposed of in accordance with local regulations. The equipment for the project does not use polychlorinated bi-phenols (PCBs) or chlorofluorocarbons (CFCs). Telecel will not install equipment that uses either of these substances. All fuel storage will have secondary containment. The batteries are acid-free and thus present a low risk for environmental damage. Additionally, Telecel uses special racks for their transportation and uses clear procedures for their handling to avoid accidents. A recycling program for batteries is in place. - Life and fire safety: To ensure adequate fire protection, all sites will have fire extinguishers for suppressing electrical or diesel fires, as appropriate, placed outside fire-risk areas against highly visible backgrounds. Telecel has a regular equipment inspection program in place that includes the testing of fire safety equipment. Telecel conducts regular drills for both fire and earthquakes. - Environmental/social management system and worker health/safety: Millicom has an Environmental and Social Management Policy and Procedures Plan (ESMP) at the corporate level. Telecel will be following the same approach to worker health and safety and environmental management as Millicom. With respect to worker health and safety, this approach will include a continuous assessment of occupational risks and improvement in internal procedures and processes; a Safety Management System; and a company-wide definition of responsibilities and training programs to implement the safety management system. With respect to environmental management, the approach will focus on minimizing electromagnetic emissions, visual impact, and management of the solid waste stream. The ESMP will be a vehicle for transferring the best practices of Millicom to Telecel.

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 environmental and social policies and the environmental, health and safety guidelines.

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 ongoing performance of project-specific environmental, social, health, and safety activities as reflected in the results of periodic and quantitative sampling and measuring programs; and - conducting periodic site supervision visits as needed.