PROJECT

Projects

Environmental & Social Review Summary

Project Number

25783

Company Name

Consorcio Energetico Punta Cana Macao, S.A.

Date ESRS Disclosed

Apr 20, 2007

Country

Dominican Republic

Region

Latin America and the Caribbean

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 20, 2007
Signed : Jun 28, 2007
Invested : Sep 19, 2008

Sector

Electric Power Transmission

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

Consorcio Energético Punta Cana Macao (CEPM), and its wholly-owned subsidiary, Compañía Electricidad Bayahibe (CEB), are off-grid, vertically integrated private utilities. They serve resort hotels and their surrounding communities along the eastern and south-eastern shores respectively in the Dominican Republic. The CEPM plant has an installed capacity of 75 MW and the CEB plant has an installed capacity of 13 MW, all in diesel generation. CEPM and its subsidiary CEB have thus far generated all of their electricity requirements from their own generation facilities. However, in order to meet accelerated growth in peak demand, CEPM and CEB plan to interconnect to the Sultana del Este power plant, owned by their sister company, Empresa Generadora de Electricidad Haina, S.A. (EGE Haina) to benefit from its more cost-competitive electricity. EGE Haina is the largest generator in the country, which is majority owned and controlled by the sponsors of CEPM.

The proposed IFC investment, a corporate loan of $20 million to CEPM and CEB, will finance part of the construction of a 129 km overhead power transmission line with 100MW capacity, including three sub-stations. The transmission line will be off-grid and dedicated to transfer electricity from the EGE Haina’s Sultana del Este power plant in San Pedro de Macorís (a 150 MW diesel plant running on HFO) through a substation to be built by CEPM adjacent to Central Romana (a privately owned plant that provides energy to the Casa de Campo resort) to a substation to be built within the CEPM plant in Punta Cana. Total project costs are estimated at $35 million. ELECNOR of Spain will construct the transmission line, while ABB from Switzerland will be responsible for the substations. The construction period is expected to be 18 months. The Borrowers (CEPM and CEB) will purchase electricity from the EGE Haina under a power purchase agreement.


The transmission line will pass through three provinces: San Pedro de Macorís, La Romana and La Altagracia. The line will have two sections:

- from San Pedro de Macorís, where the 150MW Sultana power plant is located, to Central La Romana; and
- from Central La Romana to the locality of Bávaro in Punta Cana, Province of Altagracia, where the CEPM plant is located.

There will be three substations, one at the Sultana power plant in San Pedro de Macorís, another in the Central La Romana, and the third in the CEPM plant in Punta Cana. The transmission line will cross mostly rural areas of the eastern shore of the country. An existing 69 kV transmission line will connect the Central La Romana substation with the CEB substation in Bayahibe.

Overview of IFC's Scope of Review

IFC’s review included:

- the project components to be financed by the IFC loan (a 129 km transmission line and three substations);
- the plant that will generate the power to be transmitted by the 129 km line (the Sultana del Este plant, owned by Empresa Generadora de Energía Haina S.A. – EGE Haina S.A.); and
- two plants being operated by the project Sponsors, the Consorcio Energético Punta Cana Macao (CEPM) and its wholly-owned subsidiary, Compañía Electricidad Bayahibe (CEB).

Documents Reviewed:

- Environmental Policy – EGE Haina (Declaración y Política Medioambiental, Empresa Generadora de Electricidad Haina, S.A.), August 2005;
- Environmental Policy (Política Ambiental) – CEPM, October 2006;
- Environmental Policy (Política Ambiental) – CEB, October 2006;
- Environmental Management Plan – CEPM (Programa de Manejo y Adecuación Ambiental) prepared for CEPM by Ingeniería Civil y del Medio Ambiente, February 2003;
- Environmental Impact Assessment (Estudio de Impacto Ambiental) – EGE Haina Diesel (Sultana del Este), prepared for EGE Haina by ESG Internacional Inc., December 2000;
- Environmental Management Plan (Plan de Manejo y Adecuación Ambiental – Complemento del Estudio de Impacto Ambiental), Proyecto Haina Diesel (Sultana del Este), December, 2006;
- Corporate Social Responsibility (Responsabilidad Social Corporativa) – CEPM;
- Environmental Impact Assessment, 138 kV Transmisión Line (Estudio de Impacto Ambiental, Proyecto Energético Línea de Transmisión 138 kV San Pedro-La Romana-Bávaro), prepared for Consorcio Energético Punta Cana-Macao S.A. (CEPM) by MBG & Asociados, S. A., Julio 2006.

Site Visits:

Visits to the CEPM and CEB plants, CEPM’s Wind Project (Proyecto Parque Eólico de Cabo Engaño), and various sections of the 138 kV transmission line right of way. The visits were conducted on March 5-6, 2007.

Sponsor Interviews: Face-to-face meetings with operational and technical management staff of CEPM and EGE Haina conducted by IFC staff during March 7-8, 2007. Staff who were interviewed included:

- Tito Sanjuro, General Manager, CEPM;
- Alfredo Colombano, Project Evaluation Manager, CEPM;
- Ramón Then, Evironmental Manager, EGE Haina/CEPM;
- Martha Fernández, Communications Manager, EGE Haina/CEPM ;
- Nurys Peña, Director, Legal Department, EGE Haina/CEPM ;
- Kitty Cheang, Human Resources Coordinator, EGE Haina;
- Porfirio Guerrero, Operations Manager, EGE Haina’s Sultana del Este Plant;
- Dieter Sobek, Maintenance Manager, Haina’s Sultana del Este Plant;
- Carlos Silié, Project Manager, Consultores Ambientales y de Proyectos (CAPSA);
- Marcos Otega, Lawyer, EGE Haina.

Other:

Ongoing IFC supervision of IFC’s existing investment in CEPM (Basic Energy, project #21363).

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Client Documentation

File Name Actions
Attachment 1 - Environmental Policy - EGE Haina.pdf
Attachment 4 - Environmental Management Plan - CEPM.pdf
Attachment 2 - Environmental Policy - CEPM.pdf
Attachment 3 - Environmental Management Plan - CEB.pdf
Attachment 6 - Environmental Management Plan - Sultana del Este.pdf
Attachment 5 - EIA - Sultana del Este.pdf
Attachment 8 - EIA Transmission Line - Part 5 (Annex 5B).pdf
Attachment 7 - Corporate Social Responsibility.pdf
Attachment 8 - EIA Transmission Line - Part 1.pdf
Attachment 8 - EIA Transmission Line - Part 2.pdf
Attachment 8 - EIA Transmission Line - Part 3 (Annexes 2-4) .pdf
Attachment 8 - EIA Transmission Line - Part 4 (Annex 5A).pdf