26363 - Petropavlovsk Kamchatsky Municipality

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Environmental & Social Review Summary

Project Number

26363

Company Name

Administration of Petropavlovsk-Kamchatsky city district

Date ESRS Disclosed

Oct 10, 2007

Country

Russian Federation

Region

Europe

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Dec 21, 2007
Signed : Dec 27, 2007
Invested : Feb 8, 2008

Sector

Highway Operations (Includes Toll Roads)

Industry

Infrastructure

Department

Regional Industry INF LAC & EUR

Project Description

The proposed investment is a local currency loan of up to RUB 700 million to the Municipality of Petropavlovsk-Kamchatsky in Russia. The loan proceeds would finance part of the Municipality’s capital expenditure program for 2007 and 2008. The program involves mainly investments in street rehabilitation, and upgrading of health and education infrastructure.

Overview of IFC's Scope of Review

IFC has reviewed the current status of the project and the process followed to assess its environmental and social impacts. IFC’s appraisal consisted of desk review of information provided by the project sponsor in response to social and environmental questions, including:

- Capital expenditure program for 2007-2008 with the focus on new city roads construction;
- The process by which environmental and social assessment of new developments proposed under municipal investment program is conducted, and how the results are incorporated into a program of mitigation and improvement measures;
- Organization and responsibilities for implementing the mitigation program;
- Policies and procedures for consultation with the affected people regarding involuntary resettlement and economic displacement.

IFC’s environmental specialist also had a meeting with Vasily L. Nikiforov, a Deputy Mayor of Petropavlovsk-Kamchatsky, in Moscow in September 2007.

E & S Project Categorization and Applicable Standard

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 (PS):

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS5: Land Acquisition and Involuntary Resettlement

The following Performance Standards do not apply to the project:

- PS4: Community Health, Safety and Security:

The project is not likely to pose any significant risks to community health, safety and security. Nonetheless, potential risks to community health are evaluated on the design stage and reviewed by the State Sanitary Authorities. Traffic safety compliance (including proper design of roads and installation and maintenance of all signs, signals, marking and other devices to regulate traffic) is reviewed by the State Inspection of Traffic Safety.

- PS6: Biodiversity Conservation and Sustainable Natural Resources:

New roads will be constructed within city boundaries and, hence, are not likely to cause adverse impact on biodiversity. Nonetheless, all potential impacts on biodiversity will be evaluated through Environmental Impact Assessment (EIA) process.

- PS7: Indigenous People:

No indigenous peoples communities relying on traditional livelihood are living within the area of project influence.

- PS8: Cultural Heritage:

No cultural heritage sites have been identified within the scope of this project.

As new roads will be constructed in the developed city area, the likelihood of finding of unknown heritage resources, particularly archeological resources, during road construction is low.

Environmental and Social Mitigation Measures

Municipality of Petropavlovsk-Kamchatsky (MPK) has presented plans to address adverse impacts and to ensure that the proposed project will, upon implementation of the specific agreed measures, comply with the environmental and social requirements – Russian Federation laws and regulations and IFC PS and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the project is summarized in the paragraphs that follow.

- PS1: Social and Environmental Assessment and Management Systems

City Department of Capital Construction and Maintenance is the responsible Agency for implementation of Municipality’s capital expenditure program for 2007 and 2008, which mainly involves street rehabilitation, and upgrading of health and education infrastructure. Street rehabilitation involves resurfacing of the existing streets and construction of 9 km of new city roads.

The Agency is providing bids for engineering and construction contracts. New construction is the subject for environmental impact assessment (EIA) study, which is a responsibility of the project designers. This entails the evaluation of the potential environmental and social risks associated with the project, including associated facilities; and development of measures to avoid, minimize, mitigate or compensate for adverse social and environmental impacts. Public consultations are an integral part of the EIA process. Local authorities are responsible for organizing a consultation process with stakeholders affected by new construction. The EIA outcomes are reviewed for E&S compliance with Russian law by the state responsible agencies. Their positive opinion is required for construction permit and commencement of construction activities. National EIA procedure and system of state environmental control provide adequate capacity to manage direct environmental impacts of the project.

To minimize third party risks associated with client’s contracting activity, the Agency will introduce a screening mechanism to identify if contracts for which the Agency will provide bids are likely to be in significant non-compliance with IFC’s Performance Standards. The Agency will also monitor environmental and social performance of contractors on the implementation stage of the project. Issues of non-compliance will be addressed by the Agency via appropriate Action Plans.

- PS2: Labor and Working Conditions

Occupational health and safety (OHS) impacts associated with the construction and operation of roads primarily include noise, physical and chemical hazards. Through appropriate contract specifications and OHS monitoring, the Agency will ensure contractor’s compliance with Russian regulatory and IFC requirements.

- PS3: Pollution Prevention and Abatement

Potential environmental impacts during the construction and operation of roads mainly include increased rate of surface water runoff; usage of anti-icing chemicals, air emissions; and traffic and heavy equipment noise. Potential impacts on the environment are evaluated through the EIA process. The EIA study develops a Plan to minimize adverse environmental impacts to appropriate levels. Implementation of mitigation measures is supervised by the relevant local and federal agencies Rostechnadzor and Rosprirodnadzor. Through contract specifications and monitoring the Agency will ensure effective implementation of the Environmental Management Plans for each subproject.

- PS5: Land Acquisition and Involuntary Resettlement

Land needed for new city roads construction is owned by the municipality and does not require re-zoning. The project will require the demolition of 1 apartment building and resettlement of 3 people, demolition of 9 garages, moving of 30 private garages and replacement of small parking business.

In accordance with RF Civil Code, people and entities with registered property rights are entitled to compensation in cases of compulsory sale of land and property for municipal needs. Compensation for private owners can be paid in cash, based on the market value of property, or can consist of replacement property of equal or greater value and productive potential, plus the cost of moving.

The Agency will monitor judicial and administrative processes and practices of the responsible local governmental agencies and, if needed, will facilitate consultation process and participate in the decision-making process to achieve outcomes that are consistent with the objectives of PS5.

Stakeholder Engagement

Dialog and communication with affected communities including public consultation and disclosure of environmental and social information occurs through procedures established by host country regulations.

In accordance with the Law on Environmental Protection and EIA regulations, each new development should be a subject to environmental and social impact assessment, including public consultations with the affected population. Local governments are responsible for organizing public consultations with the local communities and making EIA outcomes publicly available.

The environmental documents will be made available at the following location:

Municipality of Petropavlovsk-Kamchatsky
14 Leninskaya St.
Petropavlovsk-Kamchatsky 683000
Russian Federation

For inquiries and comment about the project, please contact:

Vasiliy L. Nikiforov, Deputy Mayor
Telephone: +7-4152-23-50-06
Fax: +7-4152-23-51-00

**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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