25895 - MEB Port

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Environmental & Social Review Summary

Project Number

25895

Company Name

COMPAS SA

Date ESRS Disclosed

May 10, 2007

Country

Colombia

Region

Latin America and the Caribbean

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Aug 21, 2007
Signed : Aug 23, 2007
Invested : Oct 17, 2007

Sector

Port and Harbor Operations

Industry

Infrastructure

Department

Regional Industry INF LAC & EUR

Project Description

In 1992 Terminal Marítimo Muelles el Bosque S.A. (MEB) began executing a 20-year concession (extended in 2005 for another 20 years until 2032) to develop and manage a new multipurpose port in the Bay of Cartagena, on Colombia’s Atlantic coast. Muelles el Bosque Operadores Portuarios S.A. (MBO and together with MEB the company), a sister company to MEB, is the operator of the port facility. The port occupies and area of 13 hectares and is the second largest in the city of Cartagena and the fifth largest in Colombia. In 2006 it received 438 ships and handled 46,278 containers, 253,179 tons of general cargo, 412,714 tons of grains and 52,760 tons of coke (fuel). The Port is located in an industrial and commercial zone next to the residential area of El Bosque.
The proposed project includes:

- the extension of the south container terminal berth by 180 meters;
- the expansion of the container yard by 3.2 hectares and the paving of the existing container yard;
- the acquisition of an additional mobile crane and other container yard equipment;
- the extension of the north berth by 50 meters;
- the building of two additional warehouses/silos;
- purchase of land to increase container storage space; and
- the upgrade of the port’s IT systems.

Overview of IFC's Scope of Review

In March 2007 IFC conducted a site visit to the Port and Terminal site, held meetings with the regional environmental agency (Corporación Autónoma Regional del Canal del Dique -CARDIQUE), the National Maritime Authority (Dirección General Marítima - DIMAR) and the Port Authority of Cartagena (Capitanía de Puerto de Cartagena). IFC also reviewed the following documents prepared by the company:

- Environmental Management Plan for Port Operations (February 28, 2007)
- Forest Compensation Plan (March 5, 2007)
- Environmental Management Plan Extension – Expansion Project (May 5, 2007)
- Occupational Health and Safety Program (2007)

E & S Project Categorization and Applicable Standard

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security

No resettlement is expected to be generated by the project. However, according to Colombian law (Maritime Ports Law 1, 1991, art. 16) if attempts by the owner of a port concession to acquire privately owned land required for its operation on voluntary basis fail, it can then request the State to invoke eminent domain and expropriate the land. The company will abstain from acquiring land under this procedure without previously informing IFC and presenting a Land Acquisition and Resettlement Plan in accordance to IFC’s performance standards. No protected areas or sensitive natural habitats are anticipated to be impacted by the project. There are no known Indigenous Groups or Cultural Property in the project area.

This is a Category B project according to IFC’s Environmental and Social Review procedures 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.

Muelles el Bosque is an existing port that has been in operation since 1992. The proposed expansion will not significantly modify the company’s existing environmental and social footprint in the area. The company has received the required environmental license to operate and is monitored by CARDIQUE. The Cartagena Port Authority and the association of companies operating in the area (Fundación Mamonal) maintain emergency response, fire protection and spill control procedures and equipment.

Environmental and Social Mitigation Measures

The company has presented plans to address the environmental and social impacts detailed below to ensure compliance with the environmental and social requirements, the host country laws and regulations and the IFC Policies and Performance Standards. The information about how these potential impacts will be addressed by the company is summarized in the paragraphs that follow.

- PS1: Social and Environmental Assessment and Management System

Community and environmental sustainability, labor conditions, occupational health and safety are part of the company’s mission and vision. The company has completed a detailed Environmental Impact Assessment (EIA) and is implementing an Environmental Management Plan (EMP) for the existing operation and the expansion project. These documents have been approved by CARDIQUE. The company is currently developing a specific EMP for the construction of a 50 meter expansion of the north dock, and the environmental license will be received before starting construction. The company is developing a corporate Environmental Management System (EMS) and expects to receive ISO 14001 certification by March 2008. This EMS will be integrated into the company’s organizational/management structure and will cover environmental, health, safety and community issues.

The company’s EMP includes the following elements: solid waste management (since May 1996); control of residual and marine waters (since October 1999); air emissions and noise levels; hydrocarbons control; contingencies plan; monitoring plan (since April 2004) and forest compensation plan (March 2007). The company receives support from an environmental consultant (INGCOSTA Ltda) and retains the services of 3 junior environmental engineers. Results and progress of the EMP is periodically reported to the company’s management. The company has been certified by the Business Anti-Smuggling coalition (BASC) and fallows MARPOL regulations for its operations.

- PS2: Labor and Working Conditions

The company employs 160 people (20 women and 140 men), who reside in Cartagena or in the neighboring community of El Bosque. The company has in place Human Resources and Health and Safety policies that are consistent with Colombian law, this PS and based on international best practice. All employees receive copies of their contracts upon being hired and their rights and benefits are clearly defined and provided to them in writing. Currently workers are not unionized, but in compliance with Colombian law, workers are allowed to form or join worker’s organizations and to bargain collectively. The company has non-discrimination policy and grievance redress mechanisms which allow employees to raise issues of concern related to their jobs, remuneration, benefits or other work related aspects. The company does not employ minors or engage in forced labor.

A comprehensive Occupational Health and Safety Plan is also being developed by the company and it expects to receive OSHA 18001 certification by March 2008. In accordance to Colombian law, all employees including contractors and their employees, are covered by an Occupational Risk Insurance and are required to abide by the company’s OHS guidelines. The Occupational Risks Insurance Company, SURATEP SA, conducts periodic risk surveys, audits and provides recommendations for corrective actions. The company will include IFC Occupational Health and Safety Guidelines in its OHS plan. All employees, direct and indirect, are provided with training and personal protective equipment (PPE) relevant to their assignment. The Cartagena Port Authority and the association of companies operating in the area (Fundación Mamonal) maintain emergency response, fire protection and spill control procedures and equipment. The company does not handle hazardous materials, including oil or liquid fuels.

The company gives priority to hiring local people where their skills match available jobs.

- PS3: Pollution Prevention and Abatement

The company is not a significant producer of greenhouse gases. All utility needs of the company are provided by local utilities companies, this includes water supply, power, sewage plants, and solid waste management services. The company has 6 power generators (diesel) for backup with a capacity of 1,539 KVA.

The general wastes generated by the project includes office waste (handled in accordance to the company’s solid waste and recycling management plan and disposed of by licensed contractors); effluents are minor and are channeled to the City’s sewerage system; waste oils (collected and returned to suppliers); and storm water runoff (channeled to drains and passed through oil and grit separators).

Refueling services and ship waste management (solid, bilge waste, ballast water, sewage, and used oils) is conducted by third parties. These companies have to be licensed, insured to cover potential damages and have an environmental management plan. In accordance to MARPOL guidelines and under the Port Authority supervision, a Pollution Auditor is present during these operations. The company requires contractors to dispose of all waste in accordance with municipal requirements at designated sites. In case of accidental release of ballast water the Port Authority, in coordination with the company and the Fundación Mamonal, provide emergency response.

Dust and noise emissions are periodically monitored by the Occupational Risk Insurance Company and are within permissible limits.
The key waste management issue that has to be carefully managed by the company relates to dredging and dredge material disposal in order to maintain channel and basin, which will be used to expand the existing Terminal area. Technical and environmental issues related to dredging operations are supervised by the Port Authority. Additionally, the EMP approved by CARDIQUE includes the dredging operation. Accretion and erosion due to this operation are minimal. As stated in the EMP, there are no sensitive marine habitats or species in the area.

- PS4: Community Health, Safety and Security

Impacts on communities are expected to be minimal. Noise and dust level are within permissible limits. No impact on agricultural land or irrigation is expected. Given that the Port is located in an industrial and commercial area impacts associated with construction influx are anticipated to be minimal. The company will nevertheless coordinate with the Municipality with regard to increased traffic and develop a Traffic Plan that covers the Terminal and surrounding streets. The company receives security services from a security firm that provides guards, who receive training on emergency and security procedures and on how to respond commensurate with the risk or security issue at hand. The security company is supervised by the National Security Companies Superintendence and abides by Colombian regulations. There is a small National Police Anti-Narcotics team based at the Terminal that acts in close coordination with the security company.

Stakeholder Engagement

In 2006 the company conducted a consultation process for its EMP. Special consideration was given to the mitigation of potential impacts generated by coke (fuel) handling by the company. This consultation process was conducted jointly with CARDIQUE and key stakeholders from Cartagena and representatives of the Community Action Councils of neighboring communities participated. The company gives preference to hiring local people where their skills match available jobs. The company supports various community development initiatives, including direct support to a recyclers’ association that participates in the company’s solid waste management plan. It also supports specific activities geared towards raising awareness on environmental issues. The EMP and other related documentation will be made are available locally in Spanish at the company’s offices and CARDIQUE.

Contacts:

Terminal Marítimo Muelles el Bosque
Mr. Alberto Jiménez
El Bosque, Av. Pedro Vélez No. 48-14
Cartagena de Indias – Colombia

Telephone: (95) 662 5042
Website: http://www.elbosque.com/

Corporación Autónoma Regional del Canal del Dique (CARDIQUE)

Mr. Agustín Chávez, Director General
Bosque, Sector Manzanillo Transversal 52 No. 16-190
Cartagena de Indias - Colombia
E-mail: direccion@cardique.gov.co

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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