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 repeat investment consisted of appraising updated technical and environmental information submitted by MBJ, review of the most recent annual monitoring report submitted to IFC, as well as site visits by IFC staff. Environmental and social issues associated with this project are essentially the same as those identified for the original investment, and include: - Subsurface contamination monitoring; - Stormwater drainage, including impacts on marine ecosystems; - Solid waste management; - Liquid effluents and sewage discharge; - Fuel/Hazardous materials storage and handling, including emergency response; - Bird hazards to aircraft; - Aircraft noise; - Employee health and safety; - EHS management systems; and - Community development.

IFC’s ongoing monitoring of MBJ’s environmental and social performance, and this updated appraisal confirms that the Company is meeting the requirements of the original Loan Agreement, including the Environmental Action Plan, and continues to demonstrate that its activities comply with requirements of the Jamaican National Environmental Protection Agency (NEPA) and applicable World Bank Group policies and guidelines. Detail on how MBJ is addressing and managing the impacts associated with these issues is provided below. - Subsurface Contamination Monitoring MBJ installed and operates a network of nine groundwater wells across the airport property to monitor the status of any subsurface contamination that remains from historical fuel leaks and spills. The system is designed to detect and intercept any residual contamination before it moves offsite and to the sea. With the exception of the well in the area of the Texaco gasoline service station, sampling data indicate there is no remaining detectable hydrocarbon contamination of groundwater, and therefore corroborates that there is no petroleum hydrocarbon contamination moving off the property and to the nearby offshore coral reefs. Notwithstanding, MBJ will continue to collect quarterly samples to ensure no further impacts occur. Texaco has acknowledged their liability for the petroleum release from their service station, and is planning to decommission and remediate the property within the next 18 months. - Stormwater Drainage MBJ has significantly improved the management of stormwater drainage entering the airport site from all directions. Any sediments contained in these stormwaters now are removed in a series of settling ponds before the discharge continues, thereby preventing the solids from entering the sea. In addition, silt fences have been installed around the airport construction areas to prevent eroded solids from impacting the nearby coral reefs of the Montego Bay Marine Park. Ongoing monitoring of water quality leaving the property indicates suspended solids concentrations are within allowable limits. MBJ will continue to monitor solids concentrations in the airport drainage system, and investigate additional measures to reduce concentrations further. - Solid Waste Management MBJ commissioned the new solid waste incinerator furnished by AAJ in December 2004, after struggling with a number of technical difficulties. After manually separating glass bottles and metal cans, MBJ incinerates all waste from incoming international aircraft in accordance with Jamaican Public Health Regulations in this new unit. Emissions are being monitored to ensure compliance. Separated bottles and cans, as well as other wastes generated by the airport – terminal domestic wastes, wastes oils, scrap metals, etc. – are appropriately disposed or recycled. - Liquid Effluents and Sewage Discharges Improved management and increased levels of pollution control of wastewaters generated by maintenance activities conducted at the airport by MBJ and various tenants (e.g., Air Jamaica) have significantly reduced pollutant loads contributed by liquid effluents. Ongoing water quality monitoring has confirmed that the oil/water separators, which were installed at two maintenance facilities, are ensuring that discharges of oils do not exceed Jamaican and World Bank Group effluent limits. - Fuel/Hazardous Materials Storage and Handling The new tank farm for jet fuel storage constructed and operated by Esso and Shell is provided with appropriate secondary containment to prevent accidental spills from being released to the environment. MBJ developed and is implementing a comprehensive Emergency Response and Preparedness Plan with documented procedures for fuel and other chemical spills and other accidents. Appropriate emergency equipment is also provided. Since implementing the new Plan, MBJ has experienced and properly responded to and contained three fuel spills that occurred during aircraft fueling. In addition, MBJ properly disposed of the contaminated spill clean-up materials. Finally, MBJ put in place an appropriate, segregated storage area at the Maintenance Workshop for hazardous chemicals and substances used in these activities. - Bird Hazards to Aircraft As demonstrated by the low number of bird strikes recorded over the last year, MBJ’s bird habitat management program is proving successful in reducing this potential hazard. No significant damage was caused by these strikes. - Aircraft Noise To control aircraft noise impacts on surrounding communities, the Civil Aviation Authority imposes an operational curfew from midnight to 7 am on aircraft take-offs and landings. To date, there have been no complaints from communities particularly close to the airport’s runway – a combined fishing village (Whitehouse community) and small resort complex on the north coastal area, and the somewhat dispersed residential/ commercial development on the eastern perimeter known as the Flanker community. - Employee Health and Safety MBJ has a suitable employee health and safety program. Personnel are regularly trained on the hazards, safety procedures and emergency response procedures associated with their tasks. There have been no fatalities or significant incidents or accidents since MBJ assumed operational responsibility for the airport. - EHS Management System MBJ has developed and is implementing a joint Environmental, Health and Safety (EHS) management system in accordance with ISO 14001, the international environmental management system standard, consistent with the original investment’s Environmental Action Plan. Documentation for the EHS Management System was recently revised in January 2005. - Community Development MBJ is actively engaged with the local community and other stakeholders on a number of levels. Regular meetings and discussions are held with staff representing the Montego Bay Marine Park concerning marine and reef protection activities. One outgrowth of this engagement is the use of sea-based airport approach light supports for coral reef propagation anchors. In addition, MBJ continues to engage with the neighboring Whitehouse and Flanker communities and the broader Parish community with a view toward developing a formalized community development program to address community needs.

This ERS contains IFC's updated review of the environmental performance of the first two phases of the original project.

IFC's ongoing monitoring of MBJ's environmental and social performance, and this updated appraisal confirms that the Company is meeting the requirements of the original Loan Agreement, including the Environmental Action Plan, and continues to demonstrate that the activities associated with the final phase of the airport expansion will comply with requirements of the Jamaican National Environmental Protection Agency (NEPA) and applicable World Bank Group policies and guidelines.

IFC will continue to 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 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 will also continue to be conducted.