This is a project that is expected to generate improved environmental and social conditions for the cities of Lima and El Callao through an increase on the reliability and supply of treated drinking water. The key potential Environmental and Social (E&S) issues are (a) potential reduction of the flow and negative hydrodynamics impacts of the Rimac river due to the Huachipa intake, and potential downstream social and ecological implication thereof, (b) potential social impacts associated to service fare increases, if planned, (c) any issues associated with land acquisition and easement required for the Right of Way of the water transmission lines, (d) SEDAPAL ''s capacity to identify and manage potential environmental, social, labor, and health and safety impacts and risks associated to their current business (including any existing environmental liability) and any civil works associated with its capital expenditure, and (e) environmental, social and occupational health and safety impacts and risks associate to any civil works (e.g. noise, dust and air emissions, solid and construction waste, hazardous waste, occupation accidents and incidents, etc).
PS1: Social and Environmental Assessment and Management System
Sedapal conducts environmental and social assessment of projects according the Ministry of Housing, Construction and Sanitation’s environmental management regulatory framework. In addition, Sedapal’s Environmental Control Action Plans are guided by the following national regulations: (a) Control of Gas Emission (DS 047-2001-MTC), (b) General Law of Solid Residues (Law No 27314) and Regulation (DS 057-2004-PCM), (c) Technical Norm on Waste Disposal (NTP 900.058-2005), (d) National Standard of Environmental Quality of the Air (DS 074-2001-PCM), and (e) National Standard of Quality of noise (DS 085-2003-PCM.
Sedapal has an integrated management system to monitor the work developed by its different units. Systems are ISO 9001 (quality), ISO 14001 (environment) and OHSAS 18001 (safety and health at work) certified. In addition, Sedapal has modern information management systems (SAP R3, OPEN SGC, OPEN SGI, SICAT, and SCADA).
According to the Ministry’s regulatory framework, and Sedapal’s management systems, Sedapal develops a Reclamation Plan to assure the restoration of the affected areas and to avoid any environmental liabilities. The implementation of the Reclamation Plan for this project is the responsibility of the Huachipa Consortium under the supervision and control of the Sedapal and Nippon Koei Cesel Oist Consortium. In the case of Sedapal, the Environmental Management Team (Equipo de Gestión Ambiental) and the Social Management Team (Equipo de Acompañamiento Social) undertake this supervision.
The Social Management Team is under the Projects and Works’ Department; and the Environmental Management Team is under the Logistic and Service’s Department. The company has a monitoring and supervising system, strengthened with the support of the Nippon Koei Cesel Oist Consortium, including the social and environmental aspects, human resources policy and work conditions.
Sedapal implements in all construction sites (intake, treatment plant, and tunnels/water transmission lines) of the Huachipa project a safety awareness system that shows a mapping of risks, identifying preventive measures and dangerous areas, both for the personnel of the company as well as visitors.
The staff of Camargo Correa’s social team, supervised by Sedapal and Nippon Koei Cesel Oist Consortium, elaborate monthly monitoring reports on the current status of community engagement issues.
PS2: Labor and Working Conditions
Sedapal complies with national labor laws and regulations for all its employment relationships, including requirements on acceptable work conditions. Sedapal’s Human Resources Department oversees and safeguards labor and working conditions for its 2,167 employees. Average wages are above market standards and employees have several social benefits related to retirement, health, and accident insurance.
Specifically for the Huachipa Project, the Camargo Correa Consortium has also devised an institutional policy to assure acceptable work conditions (e.g. 8 hours per day shifts including time for lunch, and day and night shifts are manned by different groups of workers). Professional staff has salaries with all the benefits of full-time employees. Workers are adequately hired as per the regulations of civil construction law. The Huachipa consortium has signed a collective agreement with a workers’ union so that they can benefit through employment in some areas, especially during the construction of tunnels and underground water transmission lines. The agreements signed with the workers’ union and the nearby population allows for an adequate, fare and transparent management of labor force supply, and minimizes potential conflict situations.
Sedapal and the Huachipa Consortium provide all workers with appropriate personal protection safety equipment (PEP) and have ongoing safety training each month according to a training plan. Camargo Correa Consortium has an Environmantal, Health and Safety Manual in place, which is distributed to worker’s at the time of recruitment and is used during project implementation. The Manual describes the occupational health and safety risks associated with the different construction tasks, the use of personal protection equipment (PPE), training/skill requirements and restrictions, as well as the adequate procedures for construction and operation of the treatment plan, tunnels and the underground water transmission lines. Use of appropriate equipment guarantees the safety and health conditions of the workers, especially in periods of detonations, excavations, and exposure to possible toxics gases and pollution (dust).
As part of its institutional policy, Sedapal’s construction sites maintain records of all safety incidents and accidents, and reports them periodically to the company’s Safety, Health and Environment Team and the corresponding Ministry. To date, there have been no fatal accidents in the implementation of the project. The Huachipa consortium has a health station for workers in each of the three areas of the project, with 24 health personnel. In addition, there is an ambulance available 24 hours per day for exclusive use of the project.
The Project has developed an Environmental Training Program for its workers and employees that is implemented by the Huachipa Consortium and Sedapal’s Safety, Health and Environment Team. The program comprises workshops, meetings, and dissemination of printed information and mass media to ensure awareness about prevention, protection, and preservation of the integrity and well-being of the population in the affected area, the workers themselves and the environment.
PS3: Pollution Prevention and Abatement
Sedapal and the Huachipa Consortium implements a set of procedures for the management of environmental impacts related to dust, noise and vibrations that occurs during construction. The Ministry of Housing, Construction and Sanitation’s environmental management regulatory framework regulates these procedures. The laws decreed to implement the regulatory framework are: i) Health General Law No. 26842 (July 20, 1997) and ii) Solid Wasted General Law No. 27314 (July 21, 2000). In addition, there are three supreme decrees for environmental aspects D.S. 074-2001-PCM (particulate material and gas emission), D.S. 085-2003-PCM (noisy) and D.S. 054-2004-PCM (solid waste). The Environmental Office of the Ministry of Housing, Construction and Sanitation is responsible for auditing the Huachipa project. The last audit report was completed in August 2009. The report stated that the Huachipa project has complied with 65% of commitments in the EIA, after only one year of operation (Report Nº 375-2009-VIVIENDA/VMCS-OMA, October 02, 2009). The rest of the commitments will be complied with as the civil works continue to progress; the Huachipa Consortium is working to comply with most of the remaining commitments (25%) by the end of 2009.
Most of the Huachipa water transmission lines are being installed in areas of low population density. However, some transmission lines are being installed in low-income residential areas with dirt roads, where there already existed a high level of dust-related pollution before the project started. Local residents themselves perform illegal excavations of sand for sale to companies that manufacture bricks, further contributing to the dust pollution conditions in the area. Mitigation actions include dust minimization by wetting all roads and work areas. Impacts related to noise related to tunneling detonations or excavations follows the regulations for levels permitted by law. The vibrations caused by excavations and detonations have been minimal and were only experienced during the construction of the tunnel entrances.
The CORPLAB (Environmental Analytical Services) is the laboratory contracted to conduct noise and air quality analysis and produce periodical reports. Air quality control in the tunnel areas is performed every two months. The measurement of noise levels is undertaken as required according to the construction timetable. The testing of environmental quality (air and noise) is conducted according to the methodology certified by the American Society for Testing and Materials (ASTM) and the US’s Environmental Protection Agency (EPA), and the national standards for ambient air quality according to law 074-2001-PCM. Noise tests are conducted based on ISO 1996-1:2003/ and ISO 1996-2:2007/ standards, and the Company periodically reports compliance with local laws.
The flow of the Rimac River is regulated through dams and lagoons during the dry season (May through November) and remains at an average of 18.54 m 3 /s all year round. During the wet season the flow of the river sometimes reaches 70 m 3 /s, while it remains above 10 m 3 /s in the dry season. Without considering the Huascacocha water supply project, which will bring additional 2,80 m3/s of water from a nearby lake into the River Rimac between May and November, Huachipa will increase the average annual water supply to Lima by 1.67 m3/s. Considering both Huachipa and Huascacocha, the marginal increase in water supply will rise to an annual average of 3.16 m3/s. This will have marginal ecological impacts and/or downstream water uses implications, considering also that the water intake from the Atarjea plant will be reduced during the dry season. Huachipa and Huascacocha will increase potable water supply to Lima with marginal impact on the flow of the Rimac River. By bringing more water into the Rimac River, Huascacocha is expected to ultimately improve water quality and benefit the river ecosystem.
PS5: Land Acquisition and Involuntary Resettlement
The Huachipa project directly impacted a total of 114 families: (a) 19 families that were permanently relocated, (b) 82 families needed to be temporary relocated during construction of works, and (c) 13 families suffered various impacts on their houses during construction of works (e.g. cracks in housing structures due to vibration).
According to the information provided, Sedapal has land acquisition and resettlement procedures that, in some aspects, exceed the Ministry of Housing, Construction and Sanitation’s requirements. Implementation of these procedures for the project is the responsibility of the Camargo Correa Consortium under the supervision of Nippon Koei Cesel Oist Consortium and Sedapal. The Project reached an agreement with the affected families early in the process. During implementation, the Huachipa project managed all the social impacts with the goal of “improving the living conditions of the affected population". The project conducted direct negotiations with affected families aiming for a process that, while complying with the Contractor’s timetable, also ensured the fair and transparent compensation for the families. The Huachipa project conducted a detailed baseline study of all residential housing in the Project’s area.
In brief, the Company acted as follows: (a) houses and/or lands were purchased directly from the 19 affected owners before construction commenced. The prices paid took into consideration current real estate values in the area, opportunity cost, and replacement of lost assets, with an additional compensation for the moving costs and lost productivity; (b) 82 affected families were temporarily relocated for 5 months to housing with similar or better conditions to where they lived. In addition, the Huachipa Project covered moving expenses, among other additional expenses. Families living near the second tunnel which, because of relocation had to travel greater distances to work or school, received an economic compensation covering the additional transportation expenses; and (c) 13 families were identified as needing repairs to their homes. These repairs were made promptly and to the satisfaction of the families, as the repairs left the houses in better condition than they originally were. If needed, a corrective action plan will be agreed with the Company outlining any complementary measures to the ones describe above to achieve compliance with PS5.
PS8: Cultural Heritage
The National Institute of Culture (INC) is Peru’s governmental agency responsible for the protection of cultural heritage. Following its procedures and national laws, the INC issues certificates for non-existence of archeological remains (CIRAs) for the areas to be impacted by the Huachipa Project as the works progress.
Additionally, Sedapal and the Consortium have in place standard Chance Find Procedures for its construction activities by which all construction workers are trained by specialized professional of the INC and by 2 full-time archeologists of Camargo Correa’s Safety, Health and Environment Team on how to proceed in case an archeological artifact is found. This procedure consists of an immediate stoppage of works, closure of the area where the remains are found, and informing the Project’s archeologists and the INC, who define the next steps. The Project’s archeologists conduct daily inspections of construction fronts to ensure a rapid response to any chance findings.
