PS1: Social and Environmental Assessment and Management Systems:
As required under Mexican law, an independent EIA was completed to obtain applicable local and national permits. Whilst these documents addressed a range of environmental and social issues, in order to meet IFC Performance Standards and the requirements of the IDB, an independent supplementary analysis and avian study was also completed to cover the Project. These associated supplementary reports include a discussion of environmental and social management, land negotiations, public consultation, site selection, noise impacts, drainage, and Project and cumulative avian impacts. EVM has developed an Integrated Social Management Plan (ISMP) and will develop and implement a Social and Environmental Management System (SEMS) and an Avian Monitoring and Shutdown System.
The wind farm has been constructed under a multi-contract structure, with separate contracts between EVM and specialist sub-contractors for each aspect of the work:, including
Turbine Supply contract with Clipper Turbine Works Inc. for the turbine supply delivery and commissioning.
Separate contract with GES-Scada for the wind turbine erection, including assembly and mechanical completion.
Further contract with Siemens Innovaciones, SA de CV, a specialist contractor, for the civil works, wind farm electrical infrastructure and wind farm substation (Balance of Plant).
These groups are working to their international corporate standards which have detailed requirements related to waste management, safety and human resources management. Construction activities on site are at a final stage, and no significant environmental liability has been reported.
A protocol for additional bird and bat monitoring, as defined below under PS6, will be determined following completion of ongoing Collision Risk Assessment (CRA) and development of an Avian Monitoring and Shutdown system. This process is expected to be developed over several seasons of avian monitoring.
All sites for turbines were selected based on voluntary participation by landowners; in addition EVM ensured that the sites chosen for individual turbines factored in:
-agricultural plot lines
-forested areas (of which none were cleared)
-irrigation channels (all have been maintained)
-existing roads (with proper drainage and erosion control)
-proximity to dwellings (no houses have been moved and all are beyond range of projected noise impacts) EVM is developing an Environmental Health and Safety (EHS) Management System that will address all potential environmental impacts and health and safety risks (both occupational and for the communities) related to the Project’s operation. The EHS Management System will cover organizational responsibilities, training, auditing, monitoring, and reporting arrangements, and resources to be made available to ensure adequate implementation of the environmental, health and safety plans and programs. Based on implementation of this system and the specific action and mitigation plans, this Project is expected to be designed, constructed and operated consistent with the applicable requirements of the IFC Performance Standards.
PS2: Labor and Working Conditions
During the construction period, the Project created approximately 150 temporary local jobs including workers from La Mata and La Ventosa. EVM is hiring local labor when skills match available jobs. The Company has also entered into an agreement with the Worker’s Unions having representatives of La Ventosa and La Mata through which it also sourced most transport trucks and some machinery. A reduced number of full time people will be required for the operation and maintenance of the Project. All construction contractors and subcontractors are in compliance with Mexican labor laws. EVM will revise its Human Resources policy for operations and include a clause requiring compliance with local labor laws and PS2 in all future contracts with contractors and subcontractors.
EVM’s contractor’s have in place occupational, health and safety (HS) procedures based on local requirements to manage risks and continuously improve the HS management of construction activities. The contractor’s have in place detailed procedures for different types of activities including work at heights, work with electrical equipment, and erection of towers. Accidents are duly documented and investigated and corrective actions identified. All construction activities are constantly supervised by EVM’s HS coordinator and all contractors are contractually required to abide by the project’s HS policies and procedures. Employees receive training and are provided, as evidenced during IFC’s appraisal, with the necessary safety equipment as required for their respective responsibilities and duties. As condition of IFC investment, the Company will update its HS policy and procedures in accordance to international standards for the Project’s operational phase.
PS 3 Pollution Prevention and Abatement
The Project is implicitly a net benefit from a pollution perspective as it will generate electricity from a renewable resource and help facilitate the Government of Mexico’s goal to reduce its greenhouse gas (GHG) emissions by 30 percent by 2020. The Project itself is expected to displace an estimated 156,000 tCO2e per annum.
Construction and maintenance will, nevertheless, generate a limited amount of general waste (packaging, metals, plastics, filters, oils etc.) which will be disposed of in designated places by contractors. Road maintenance and expansion required erosion and dust control. EVM implemented regular watering of roads and sourced water from municipal and Ejido authorized sites and no impact on other users occurred as a result of water usage.
Construction of the Project is substantially complete. Key impacts related to construction activities (e.g. soil erosion, noise, dust generation, traffic disruption, and worker safety) are being managed to international standard by Clipper, Siemens, and GES Scada. Written OHS procedures, including a written Labor Policy, are in place and are being monitored by Siemens and EVM. The Traffic Management Plan focuses on dust control, speed and junction control for oversize and heavy vehicle movement. The national environmental authority (SEMARNAT) conducts regular waste, dust, road safety, and reforestation monitoring.
Areas temporarily used or disturbed during construction will be reinstated at the end of construction; impacts are, however, small as the permanent footprint of each tower is relatively small at an average diameter of 4 square meters and is separated from the next turbine by twice the diameter of the rotor (89m). Total physical footprint of the Project (turbines, substation and roads) represents less than 0.5% of total La Mata and La Ventosa community/Ejido land. Ongoing maintenance of the Project will require periodic parts and fluid (hydraulic and lubricant oil) replacement. EVM will dispose of and manage wastes in accordance with national requirements and as per contractor corporate standards. Solid waste will be disposed of in designated landfills and oils/fluids will be recycled and/or sold to licensed companies for disposal.
PS4: Community Health, Safety and Security
The main risk to communities relates to the construction rather than operational phase of the Project. Key risks posed to the community relate to traffic movement, noise, visual impact, and shadow flicker. With regard to visual impacts it should be noted that the flat landscape and tree belts in the area cause turbines to disappear from sight at relatively short distances and the landscape already contains multiple operating wind farms which has already altered its character. No visual impact or noise concerns have been raised by community members within the sight lines of the turbines. Given that the nearest households are approximately 2.5 km from turbines, noise and shadow flicker impacts are negligible. Traffic safety procedures are being implemented by EVM and its contractors as part of the Project’s environmental and HS procedures. Additionally, there is restriction of access to specific areas/equipment that could pose any risk or hazard (e.g., electric shock, heavy equipment etc.) to community members.
Neither EVM nor its contractors employ armed security and all security guards will receive training consistent with PS4 to ensure any response to threats to the Project/personnel is in proportion the threat. Contractor contracts will contain a requirement to comply with this requirement.
PS5 Land Acquisition and Involuntary Resettlement
The Ejido system is the predominant land tenure system in the Project area, and in many other regions of Mexico, and it emerged in the last century as one of the main results of the Mexican Revolution. The Ejido system allows for large extensions of land to be communally owned with parcels set aside for individual use (ejitadario) or communal use. Individual ejidatarios are free to lease their lands to other ejidatarios or third parties, but Ejido lands cannot be sold or mortgaged without prior approval from the Ejido’s general assembly.
The Project is located in lands of the Ejidos of La Ventosa which comprises a total area of 5,904 hectares distributed among 176 ejidatarios of which 90 hectares pertaining to 24 ejidatarios are part of the Project and La Mata which comprises an area of 3,039 hectares distributed among 185 ejidatarios. Of which 290 hectares pertaining to 39 ejidatarios are part of the Project. Total Project final footprint from permanent structures such as substation, platforms, roads, etc, will affect approximately 16 hectares (equivalent to less than 0.5% of total Ejido land in La Ventosa and La Mata), including approximately 1 hectare for the substation. No physical resettlement will take place and impacts on livelihoods are minimal given the Project’s footprint and the fact that ejidatarios will continue having access to their lands and continue with their agricultural activities. The siting of platforms and other structures were modified in order to avoid the land of ejidatarios who declined to participate in the Project. It’s also worth noting that the Project was initially designed to utilize 75 generators with a nominal capacity of 900 kW each, along the same two rows as in current design, but was later modified to employ newer megawatt-scale turbine technology (i.e. bigger generators), which substantially reduced its footprint on the land.
In the early nineties, the Project entered into negotiations with the two Ejidos and between 1993 and 1994 both Ejido assemblies allowed for feasibility studies to be conducted on their lands under land reservation contracts for future wind development for which annual fees were paid. In 1994, the Project began discussing the compensation criteria and conditions of the Land Lease Agreements (Contractos de Usufructo) with the Ejidos. However, a number of factors subsequently led to delays in the Project implementation with very limited activity until 2001. Between 2002 and 2003, regular meetings and assemblies with the communities resumed and a total of 63 30-year Land Lease Agreements (39 in La Mata and 24 in La Ventosa) were signed with ejidatarios for parcels of individual use for the lands assigned to each of them pursuant to PROCEDE (Programa de Certificación de Derechos Ejidales y Titulación de Solares, an agrarian program implemented by the federal government which defines the extension of each of the lands that correspond to each Ejidatario, , covering a total area of 380 hectares which have been defined as the Project area (polígono).
The Land Lease Agreements have different payment rates depending on the stage of implementation of the Project, including annual land reservation fees before construction, annual payments during construction and monthly payments during operation. Annual payments are subject to adjustments according to the annual inflation rate published every year by the National Central Bank (Banco de México). Payment criteria was agreed upon by the 2 Ejido assemblies in both contract signing occasions in 1994 and 2002/2003, with 100% of the ejidatarios unanimously in favor of the contract clauses. Upon termination of the lease agreements, the Company must return the original quality of the affected soil in the parcel and remove all turbine equipment and structures, but will transfer to the ejidatarios all communication and transportation infrastructure on their parcels. In connection with the Land Lease Agreements, the Company provided support to register the titles of those ejidatarios who hadn’t done so by the time negotiations began in the National Agrarian Registry (Registro Agrario Nacional) In addition, the Company entered into a 30-year lease agreement for 1 hectare for the substation located in two parcels.
The Company can not resort to expropriation and the participation in the Project on behalf of the ejidatarios is voluntary. Given the type of population involved, the nature of the land lease contracts, and sensitivity in similar developments in the area, the Company has followed the PS5 approach in this Project. Based on the existing information and interviews with ejidatarios, it was confirmed that negotiations were based on informed and good faith basis, and that compensations are above market values.
It must be highlighted that EVM’s approach is also consistent with the recommendations of a study carried out in 2003 by Winrock International and financed by USAID on land leasing practices for wind power development in the Isthmus of Tehuantepec, that recommends fixed fee arrangements (in contrast to royalty arrangements) that benefit landowners by offering steady, predictable income and protection in years of low electricity generation or revenue, as well as a transparent calculation of payments.
EVM has developed an Integrated Social Management Plan (ISMP) that includes a section describing the land lease negotiations process and criteria to date and defines the process to conduct any future negotiations in the future in compliance with PS5 objectives.
PS6: Biodiversity Conservation and Sustainable Natural Resource Management
This Isthmus of Tehuantepec has an area of 6700 square km and is classified by BirdLife International, the major global avian NGO, as an Endemic Bird Area (EBA). The Project site, which occupies a total of 380 ha (but only 16 ha that include turbine platforms, the substation and roads), an infinitesimal fraction of the EBA, comprises farmland and sparse tree lines along roads, fields and several small streams. The land has significantly been altered by centuries of cultivation and human habitation. Sorghum cultivation and pastures dedicated to livestock dominate. No threatened, vulnerable, or endangered terrestrial species have been recorded in the Project’s site or in its surroundings. As defined below, no significant impact on any resident or migratory bird species is anticipated as per independent ornithological studies completed.
While its terrestrial footprint does not directly impact or touch any protected area, based on existing migratory and meteorological patterns, the space above the wind farm at times constitutes a natural habitat critical to the survival of migratory bird species. However, none of the key migratory bird species present in the Project area corridor or any of the resident species are endangered per the IUCN Red List. The sections of the Isthmus, particularly coastal areas and the Sierra Tolistoque mountain range, which form part of the main bird migration corridor which connects the Atlantic and Pacific Coasts, are not located above or directly adjacent to the Project site. Some bird species endemic to the Isthmus, in particular the Cinnamon-tailed Sparrow (Aimophila Sumichrasti) listed in the Near Threatened (NT) category in the 2008 IUCN Red List, are known to nest in the remaining patches of low deciduous forest found in some areas of the Project’s site. This has been taken into account in the siting of towers, for which no clearing of tree/forest belts has occurred.
For several bird species, none of which are endangered, 100 % of their regional population migrates through the Isthmus each year (spring and fall migrations). According to results of bird monitoring activities carried out in fall 2007 and spring 2008, the Project’s site is not located within a high bird traffic zone in either the fall or spring seasons, but is adjacent to the most important migratory flyways in the region. During the survey, about 600,000 individual birds were recorded with only 8 % of these individuals actually flying over the Project site of which the vast majority was flying at 300m plus, well above rotor or Project impact height. More than 99% of the birds observed flying over the Project site correspond to the following four species, all of them in the Least Concern (LC) category of the UICN Redlist: Turkey Vulture (Cathartes Aura), Swainson’s Hawk (Buteo Swainsoni), Broad-winged Hawk (Buteo Platypterus) and Franklin’s Gull (Larus Pipixcan). Whilst these species are not endangered, the significance of this issue relates to the importance of the area to migratory species and the proportion of any given species flying over the site.
With regard to the key species listed above, anticipated Project level impacts are not deemed to be significant with regard to population viability for any given species. Given that there are no internationally established models (e.g., Scottish National Heritage Model) or thresholds for management of wind farms with regard to impact on incremental mortality of species, the Project will, until a regionally specific model is developed, operate the wind farm to ensure incremental mortality (caused by its operations) does not exceed 1% of natural background mortality for any given species – i.e., the threshold as set by the Scottish National Heritage Model. Based on a preliminary collision risk assessment completed for the Project, no mortality is expected to result which is in excess of 1% of natural background mortality for any species. This threshold has been used in other countries, especially in the UK and is widely accepted, though not mandated due to geographic and species variation and behavior, as a good benchmark. EVM’s proposed Project level monitoring will have several key components, as follows: - measurement of bird use of the area within the wind farm; - measurement of bird flight activity through the wind farm site (including flight height) throughout the year. This will be over a sufficiently wide area to cover the wind farm site and it’s expected area of influence; - detailed monitoring of bird flight activity during spring and fall migration periods (as part of a turbine shut-down program to be developed and implemented); - monitoring of collision victims around the wind turbines; - use of data collected to update the collision risk model and test its output; - establish, where possible, links with other bird monitoring programs at other wind farms to facilitate data-sharing and a wider-scale analysis of effects; and - independent ornithological review and input.
Given that multiple wind farms currently exist, avian impacts are being assessed at the cumulative level as part of this Project in order to meet IFC''s Performance Standards. In cooperation with another wind project for which IFC is considering an investment (the EURUS project being developed by Acciona), EVM is currently finalizing completion of a study by international ornithologists to assess the cumulative impact and cumulative collision risk of development of large scale wind power projects in the Juchitan area of the Isthmus of Tehuantepec. This study is currently underway, however, preliminary indications based on the analysis of the international consultant are that cumulative incremental mortality is not anticipated to be significant and will probably meet the 1% threshold. When completed, its main results will be disclosed and presented to various stakeholders, including SEMARNAT, wind power project developers and key birds NGOs. With respect to migratory birds, the study will include and define the following: - collision risk analysis (CRA); - a proposed turbine shutdown program, as needed; - detailed monitoring scheme; and - cumulative ornithological impact assessment (defined as all existing, permitted and wind development under construction within the Project’s area of influence). It should be noted that populations and impacts on bats are also being assessed and will be input into the CRA, however due to turbine heights, this is not anticipated to be a significant issue. Cumulative assessment of bird impacts will be a first in this geographic area and it is hoped ongoing monitoring and collection of additional bird data is anticipated to eventually result in development of a standard collision risk model for avian impact assessment for the wind sector in the Isthmus. This will be a significant tool for assessing wind project impacts and have a demonstration effect for the industry and would ultimately support and enable Government policy. Cumulative avian assessment in the wind power industry is a new subject area that many countries are currently grappling with, including the US and the UK. Lessons learned in those industries are being applied in the assessment and review of this Project. BirdLife lists the Isthmus as having incomplete data – population estimates for certain species in this area have huge ranges (in some case from 500,000 to several million). It is hoped that over time, the Project can help close this gap and contribute to avian knowledge in the region.
PS7 Indigenous Peoples
Even though not all Ejidos in Mexico are indigenous, the Project is located in a geographical area generally identified as Zapotec traditional territory and the communities of La Ventosa and La Mata are considered indigenous given their ethnicity, traditions and language. Almost all inhabitants from these Ejidos speak Spanish, however, a majority also speaks Zapotec (approximately 65%) and in some cases (approximately 5%) it constitutes their primary language, particularly for elder community members.
Potential adverse impacts on community members are likely to be minimal to moderate since the permanent footprint on the land is small, it won’t affect land productivity or irrigation, and current users will be able to continue their past agricultural activities such as farming or cattle grazing. Some ejidatarios will be benefiting directly from the Project through payments of annual fees for their lands, access to jobs and improved roads, and both Ejidos as a whole will be benefiting from annual payments of fees for communal lands and the social investment program being developed by the Company based on needs assessment and consultations with the Ejidos.
As discussed under PS5, the Company has conducted land lease negotiations on good faith basis over 16 years and it has ensured free, prior and informed consultation (FPIC) of the Ejidos and the ejidatarios. The Company’s ISMP has been designed to incorporate the elements of an Indigenous Peoples Development Plan (IPDP) and documents the consultation and land negotiation process to date and define measures to establish and ongoing and culturally appropriated engagement with the community throughout the life of the Project. The ISMP also describes the steps that the Company will take to develop its social development program.
