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, social, labor, and health and safety impacts of the projects were analyzed: - Flight operations safety and security; - Labor relations; - Maintenance-related hazardous materials, effluents, and waste management; - Dangerous cargo handling; - Aircraft noise and emissions control; - Employee health and safety, including workplace exposure to chemicals; - Environmental management systems; and - Social responsibility and cultural sponsorship. GOL operates in accordance with industry standards and has presented plans to continue to address these impacts to ensure that the proposed project will operate in a manner so as its activities comply with applicable host country laws and regulations and IFC’s environment and social requirements.

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 - the host country 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. - Flight operations safety and security: The Brazilian civil aviation industry follows the highest recognized safety standards in the world, and Brazil is classified as a Category 1 country (the same as United States and Canada) in flight safety standards by the International Civil Aviation Organization (ICAO). GOL maintains its aircraft in strict accordance with manufacturer specifications and all applicable safety regulations, and performs routine line maintenance every day. GOL’s pilots have extensive experience, with flight captains having more than 10,000 hours of career flight time. GOL conducts ongoing courses, extensive flight simulation training and seminars addressing the latest developments in safety and security issues. GOL also closely follows the standards established by the Air Accident Prevention Program of Brazil’s civil aviation authority (Departamento de Aviação Civil, DAC), and has installed the Flight Operations Quality Assurance (FOQA) system, which maximizes proactive prevention of incidents through the systematic analysis of the flight data recorder system. All of GOL’s aircraft are equipped with Maintenance Operations Quality Assurance (MOQA), a troubleshooting program that monitors performance and aircraft engine trends. Since the commencement of operation, GOL has had an excellent safety record with only minor operational incidents and no accidents involving injury to passengers or crew. GOL is also an active member of the Flight Safety Foundation, a foundation for the exchange of information about flight safety. GOL’s flight safety and accident prevention program complies with DAC requirements, as well as with relevant U.S. Federal Aviation Administration (FAA) and ICAO standards. - Labor Relations As of the end of 2005, GOL had nearly 5,500 employees - pilots, flight attendants, mechanics, customer service representatives, airport and flight operation personnel, and management and administrative personnel. GOL subcontracts certain services, such as cargo handling, information technology, call center and runway handling operations. A national aviators’ union represents Brazil’s pilots and flight attendants, and six other regional aviation unions represent ground employees of air transportation companies. Approximately 4% of GOL’s employees are members of unions. Negotiations in respect of wage and salary increases are conducted annually between the workers’ unions and a national association of airline companies. Work conditions and maximum work hours are regulated by government legislation and are not the subject of labor negotiations. Since the commencement of its operations, GOl has not experienced any work stoppages by its employees and GOL believes its relationship with its employees is good. - Maintenance-related hazardous materials, effluents, and waste management: Maintenance performed on GOL’s aircraft can be divided into two general categories: line and heavy maintenance. Line maintenance consists of routine, scheduled maintenance checks on the aircraft, including pre-flight, daily and overnight checks and any diagnostics and routine repairs. All line maintenance is performed by GOL’s technicians at its bases in São Paulo, Rio de Janeiro, Porto Alegre, Curitiba, Florianópolis, Brasília, Salvador, Campinas, Vitória, Navegantes, Maringa, Recife and Londrina. Heavy maintenance checks are performed following a pre-determined schedule of major overhauls defined by the aircraft’s manual, based on the number of flights flown by the aircraft. GOL has internalized heavy maintenance on its aircraft and is in the final stage of completing its new aircraft maintenance center at the Tancredo Neves International Airport in Confins in the State of Minas Gerais. The new facility is expected to be fully operational by mid-2006. GOL plans to use the new facility for airframe heavy checks, line maintenance, aircraft painting and aircraft interior refurbishment. The new maintenance facility will accommodate GOL’s fleet expansion, centralize its aircraft maintenance operations, reduce cost, and provide GOL with control and flexibility in scheduling of the heavy maintenance which so as to maximize its aircraft utilization. GOL has also been certified by the DAC under the Brazilian Aeronautical Certification Regulations to perform heavy maintenance services for third parties. GOL intends to offer these services on competitive terms shortly after the completion of the new maintenance facility. During the building of its maintenance facility in Minas Gerais state, GOL’s design concept has been to preserve not only the hangar site but the neighborhood as well. Waste water collection and treatment plus solid waste collection, treatment and recycling were of paramount attention in all phases of the project and construction. A fully sealed painting hangar will prevent release of airborne contaminants and an internal air filtering system gives GOL the necessary assurance that normal activities in the new facility will not expose workers the local environment to any detrimental affect derived from such activities. - Dangerous cargo handling: GOL operates in compliance with the conventions, technical instructions, and standards of these international organizations, as well as with the legal requirements of the countries in which it operates. The company has an organization and procedures in place to ensure compliance. GOL does not transport dangerous cargo on its aircraft. The company periodically conducts dangerous cargo training for its ground workers to be able to identify and to refuse such cargo. - Aircraft noise and emissions control GOL currently leases all of its aircraft, which have an average age of less than 9 years. The fleet is based on Boeing 737-700 Next Generation (NG) and 737-800 NG aircraft, and the company expects to purchase and take delivery of 16 additional NG aircraft during 2006. GOL’s Boeing 737-300’s currently in service will be retired by 2010; by which time the Company expects to have a total of 88 aircraft in service. Due to its relatively low age, GOL’s aircraft fleet complies with noise guidelines and standards established by ICAO and the FAA. The new aircraft will allow GOL to better service airports such as Rio de Janeiro’s Santo Dumont, which has nighttime noise restrictions. New aircraft will also have better fuel efficiency than the models they will be replacing, and thus generate reduced air emissions. - Employee health and safety, including workplace exposure to chemicals GOL has an active occupational health and safety program, which is documented in its PPRA - Programa de Prevenção de Riscos Ambientais and PCMSO - Programa de Controle Médico e Saúde Ocupacional. A program for workplace noise controls and hearing protection is in development. Areas of coverage include: workplace air quality and respiratory protection; ergonomic risks and hazards; prevention of contact with dangerous equipment and moving parts and electrical hazards. Appropriate personnel protective equipment is provided. Maintenance facilities are designed and operated to protect the health and safety of employees, and accident prevention procedures are in place. Personnel participate in extensive health and safety training programs, including emergency response and fire fighting. - Environmental management systems GOL is in the process of formalizing its quality and environmental management systems (EMS), with the objective of certifying them to international standards. The Company is conducting planning for these activities, including preparing the necessary documentation, various operating procedures, as well as establishing organizational responsibilities and monitoring protocols. - Social Responsibility and Cultural Sponsorship GOL’s values are based upon growth, respect, and incentives for teamwork for our employees, and the fulfillment of its social and environmental obligations. GOL has committed to being a good corporate citizen in Brazil by participating in projects dedicated to improving the education, health and nutrition of the underprivileged portion of Brazil’s population, particularly children. GOL are the largest individual sponsor of Pastoral da Criança, a non-governmental organization that has assisted in the health and education needs of more than 1.8 million children in Brazil from infancy to age six. The Company also supports other non-governmental organizations, such as Fundação GOL de Letra, a foundation dedicated to educating underprivileged children and teenagers; Projeto Felicidade, a project that provides assistance to children with cancer; and Projeto Solidariedade ao Nordeste, a project that provides food donations to poor families in the northeastern region of Brazil. GOL sponsor numerous cultural and sports activities, such as theater plays and dance shows and sports events, to help promote travel and tourism in Brazil. In addition to making a difference for those in need, GOL also believes that its social responsibility and cultural sponsorship initiatives benefit us by enhancing our corporate image and promoting awareness of our brand. In December 2005, GOL’s shares were included in the Corporate Sustainability Index (ISE) Bovespa. It is the first stock index in Latin America comprising companies with responsible views towards the environment, society, customers, suppliers and other stakeholders.

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. Periodic site supervision visits will also be conducted.