27777 - Mytischi heating

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Environmental & Social Review Summary

Project Number

27777

Company Name

UZ ZHKKH G. ASBESTA, MKU

Date ESRS Disclosed

May 4, 2009

Country

Russian Federation

Region

Europe

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 22, 2009
Signed : Jun 25, 2009
Invested : Dec 18, 2009

Sector

Water and Wastewater Utilities

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

The proposed investment is a loan to the municipal management company “UEZ ZhKKh” (“Upravlenie Edinogo Zakazchika Zhilischno-Kommunalnogo Khozyaistva”) (the “Company”) to support the rehabilitation program for the heating infrastructure of the city of Mytischi, a rapidly developing municipality neighboring Moscow with about 170 thousand residents and a strong need to rehabilitate and grow its infrastructure.

The loan will be used for the installation of 81 automated individual heating substations and the rehabilitation of about 14.5 kilometers of the heating distribution network using modern pre-insulated water pipelines. This covers approximately one third of the city’s rehabilitation plan for 2009-2010 (the “Project”). The heating system will be maintained by the company “Mytischi Teploset” (the “Operator”). The project will be a continuation of the IBRD Municipal Heating Project (2003-2008).

Overview of IFC's Scope of Review

The environmental and social review of the project included site visits; meeting with the Administration of Mytischi Settlement; discussions with key managers and specialists of the municipal management company, the company-operator maintaining the heating system of Mytischi; appraising technical, environmental, health & safety and social information provided in response to IFC requests.

E & S Project Categorization and Applicable Standard

IFC''s environmental and social review indicates that the investment will have impacts which must be managed in compliance with the following Performance Standards:

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

No land acquisitions are foreseen for the project implementation except temporary allocation of small areas for pipe laying (PS 5: Land Acquisition and Involuntary Resettlement). The project will not affect natural or modified habitats, cultural heritage, or indigenous people (PS6: Biodiversity Conservation and Sustainable Natural Resource Management, PS 8: Cultural Heritage, and PS7: Indigenous Peoples) since the infrastructure being upgraded is located in fully developed parts of the greater Moscow urban territory.

This is a category B project according to IFC’s environmental and social review procedure.

Implementation of this project will improve quality of heating and hot water services to residents; reduce heat losses and maintenance costs, improve energy efficiency by optimizing gas and electricity consumption for heat generation, and promote sound cost recovery practices. The project will also contribute to reduction of CO2 emission and other pollutants.

The project’s limited environmental and social adverse impacts can be avoided or mitigated by adhering to national laws and regulations, generally recognized performance standards, guidelines and design criteria.

The following potential environmental, health, safety, and social (EHSS) issues were analyzed:

- Environmental and social management system;
- Environmental and social assessment of more recent heat distribution system upgrades;
- Implementation of mitigation measures and procedures during construction phase;
- Labor and working conditions, including occupational health and safety of contractors during construction;
- Community health and safety.

Environmental and Social Mitigation Measures

The company has presented its plans to address any 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’s Policy and Performance Standards on Social and Environmental Sustainability (PS or Performance Standard) and IFC’s Environmental and Social 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:

Under Russian legislation, each new development, modernization or upgrading of existing operations are required to be evaluated through environmental impact assessment (EIA) studies. This comprises the evaluation of the potential environmental and social risks (E&S risks) associated with a project and development of measures to avoid, mitigate, or compensate for adverse social and environmental impacts. EIA studies are undertaken during design works, and the authorities review the design documentation, including environmental protection measures for its compliance with Russian laws and regulations before a project can proceed.

To ensure the appropriate EHSS performance of the project and address the requirements of IFC’s Performance Standards, the company will, in addition to the above:

- request bidders (design and construction contractors) to include information on their EHSS management systems and key EHSS performance in the Tender Offer/Proposal;
- include contract specifications ensuring implementation of EHSS criteria/specifications consistent with national laws and IFC’s Performance Standards in the contracts with winning bidders,
- contractually oblige construction contractors to inform the company of any significant EHSS accidents and events.

The attached Environmental and Social Action Plan (ESAP) contains specific tasks that the company will undertake to mitigate perceived risks and impacts from the planned upgrading, and to ensure compliance with IFC’s Performance Standards.

The federal and local legal and regulatory framework establishes a satisfactory institutional system for monitoring, evaluation and control of the construction and further operation.

PS2: Labor and Working Conditions:

Protection of the work force in Russia is provided through federal/national legislation, in particular the Labor Code. The Labor Code provides extensive protection for workers and ensures that a large set of social benefits must be provided. National labor laws specify rights and responsibilities of an employer and employees, guarantees employees’ rights for labor protection, and are consistent with the International Labor Organization’s core labor standards and IFC’s Performance Standard 2.

The company is 100% owned by the Mytischi municipal authority and strictly adheres to the national labor laws. The hiring, both within the company and the operator and among contractors and subcontractors is conducted in accordance with the Russian Labor Code with a strict policy against discrimination based on gender, race, age, ethnic association or nationality, hereby fulfilling IFC’s Performance Standards. Employees have the right to collective bargaining and freedom of association.

Moreover, the high standard of the operator’s social corporate responsibility is demonstrated by receiving an award of the Moscow Region Trade Union Committee of municipal enterprise for the best collective agreement in the Region. Furthermore, 95% of the employees are members of a trade union.

The standard operation of the heating system (including underground pipelines, individual heating substations and gas-fired boiler houses) do not result in significant adverse operational health and safety issues upon implementation of the requirements and measures set up in the design documentation, national laws and regulations. To ensure occupational health and safety (OHS) performance of the project’s operational phase, the Operator has implemented a standard for OHS management that comprises identification of OHS risks and hazards, development of preventive and mitigation measures and monitoring of their implementation. Occupational Health and Safety issues are also addressed via training of all staff and the provision of appropriate personal protective equipment for staff.

The operator in accordance with the national laws and regulations established the emergency preparedness and response plan, as well as other measures consistent with PS2 requirements.

The main occupational health and safety issues of the Project are associated with the construction phase, including potential exposures to dust, noise, physical strain, pipe welding and trench excavation hazards. The management of the construction phase hazards is addressed through training of personnel in safety procedures; regulation of working hours; provision of appropriate personal protective equipment. In order to minimize risks associated with the construction, construction contractors and subcontractors will be obliged contractually to adhere to EHSS specifications consistent with national federal and regional Labor and Occupational Health and Safety laws and, additionally, to IFC’s Performance Standards.

PS3: Pollution Prevention and Abatement:

Implementation of this project will reduce heat losses and water consumption; and improve energy efficiency of the distribution system. In addition, replacement of the current pipes with the ones that have foaming polyurethane insulation will reduce heat losses from the current 12% to 3% and mitigate thermal impacts on soils and vegetation during heat transmission. Installation of individual heat substations/exchangers that automatically adjust temperature of supplied water depending on ambient air temperature will reduce gas consumption for heat generation and, subsequently, air emissions, including greenhouse gases from gas-fired boilers. Installation of wireless dispatching system SCADA (Supervisory Control and Data Acquisition) to control leak detection and temperatures of water streams will also reduce water losses.

The standard operation of the heating system is not associated with adverse environmental impacts upon implementation of the requirements and measures established in the national laws and regulations. Common environmental impacts of the construction operations including exhaust emissions from machinery and waste handling are local and limited. Impacts on soil and underground waters are negligible since only narrow and light depth tranches (1.5-2 m) are used for the pipe laying. Waste generated from the construction operations are removed by specialized organizations and disposed at the local landfills.

Local regulations adopted by the Mytischi municipal authorities have established strong safeguards for cutting down green plantation during preparation of construction areas and rehabilitation of land plots. Through contract EHSS specifications and monitoring, the company will ensure implementation of these preventive and mitigation measures. Additionally, this will be supported by the regular inspections of the relevant local authorities and agencies.

PS4: Community Health, Safety and Security:

Implementation of the project will improve household living conditions by improving the quality of heating and hot water services to residents, and reducing the frequency of maintenance impacts for the heating distribution network. Reduction of gas consumption for heat generation will improve ambient air quality due to reduction of air emissions from boiler houses.

The main community health and safety issues of the project are associated with the construction phase and include temporary switch-off of hot water supply to residents; dust, noise and vibration from construction vehicles and moving equipment; obstacles in passageways and emergency preparedness. Potential risks to community health and safety are evaluated in the planning and design stage and appropriate measures are incorporated in the specific sub-projects. Temporary switch-off of hot water supply would not exceed 8 hours according to the design specifications. Construction contractors and subcontractors will be prescribed in the contracts to: only use heavy machinery during daylight and within limited period to ensure noise and vibration impacts are minimal; fence and post relevant information at the construction sites; install safe barriers / passageways / crossing of trenches during pipe laying; present their specific work plans to ensure public safety. Monitoring and regular inspections of the company, local municipal agencies and relevant authorities will ensure implementation of measures for community health and safety.

The operator has established regular monitoring of ambient air quality and noise level at the areas adjacent to boiler houses, and undertakes inspections of these areas to ensure sufficient housekeeping of the territories and hygienic conditions of solid domestic waste storage and removal. In addition, the operator undertakes regular monitoring of supplied hot water quality including analyses of chemical, microbiological and organoleptic parameters.

A grievance mechanism is in place. Residents have an extensive variety of options to resolve their concerns: visit the company’s responsible managers and specialists in ‘the reception hours’; send a written request to the municipal authorities; use an “electronic reception” of the Municipal district of Mytischi; call “hot-line service”. The numbers for the hot-line service are available at the official web-portal of the Municipal district of Mytischi http://www.mytyshi.ru/raznoe/telephones/. Relevant contacts are published at the official web-portal of the City of Mytischi http://www.mytischi-city.ru/.

Stakeholder Engagement

Relevant information about the municipal heating program is disclosed through: publications in the local mass media, advertizing on the official web-portal of the City of Mytischi http://www.mytischi-city.ru/ and information on the Operator’s website http://www.m-teploset.ru/.

In addition, the company is committed to arrange public consultations in the form of meetings with affected residents and disclose the project environmental and social benefits and issues.

Design documentation including environmental protection measures is retained by the company and the operator and accessible for all interested parties.

To obtain more information about the Project please contact:

Mr. Biryukov Nikolai Kuzmich, Head First Deputy, municipal settlement of Mytischi
Tel: +7 495 586 3125, fax: +7 495 582 7666
394008, Russian Federation, Mytischi, Moscow Region, Novomytischinsky pr-t, 36/7
http://www.mytischi-city.ru/

Mr. Kazanov Yury Nikolaevich, Director General, “Mytischi Teploset” company
Tel.: +7 495 583 0700; fax: +7 495 583 8721; email: zteploset@mtu-net.ru
394008, Russian Federation, Mytischi, Moscow Region, Kolpakova str., 20
http://www.m-teploset.ru/

Mr. Sidorov Andrei Nikolaevich, Director of the municipal management company “UEZ ZhKKh”
Tel.: +7 495 581 6183; fax: +7 495 582 7622
394018, Russian Federation, Mytischi, Moscow Region, Sukromka, 6
http://mupuez@yandex.tu

Client Documentation

File Name	Actions
ESAP Mytischi.pdf
ESRS Mytischi Russian.pdf
ESAP Mytischi Russian.pdf

**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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