28919 - Mariy El II

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Environmental & Social Review Summary

Project Number

28919

Company Name

REPUBLIC OF MARYI EL

Date ESRS Disclosed

Feb 22, 2010

Country

Russian Federation

Region

Europe

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Mar 29, 2010
Signed : Mar 31, 2010
Invested : May 14, 2010

Sector

Highway Operations (Includes Toll Roads)

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

The proposed Project envisages a 3-year program of financial support to the Republic over the period of 2010-2012. This multi-year engagement is aimed at helping the Republic to make meaningful progress on the road sector reforms agreed under the first IFC loan which was fully disbursed in June 2009. The proposed Project consists of investments in the Republic’s core road network and refinancing of the Republic’s short term debt taken by the Republic to finance its 2009-2010 capital investment program.

The first phase of the 3-year program will be implemented in 2010 and includes resurfacing and improvement of safety of about 30 km of the Republic’s core road network and some refinancing of the Republic’s short term debt taken to finance its 2009 capital investment program.

Overview of IFC's Scope of Review

The proposed Project is a follow up to an existing IFC investment in the road infrastructure of the Republic of Mariy El (“the Republic’). The environmental and social (E&S) review of the existing project was conducted in 2008. The summary of the review (ESRS) and the Action Plan (ESAP) can be found at the following link: #27781

To determine the compliance of the existing investment with at-approval agreements and to evaluate the new proposed investment, an IFC environmental specialist visited the Republic in February 2010. Implementation of the ESAP agreed under the first IFC loan was evaluated during this visit and further steps to enhance the environmental, health and safety (EHS) aspects of the Project were agreed upon. These actions will be implemented in the framework of the existing ESAP, which will also be applicable for the second project.

The evaluation of the proposed investment included meetings with the specialists of the responsible Road Agency, MariyskAvtoDor (MAD), as well as with Human Resources and Occupational Health and Safety (OHS) specialists of the selected contractors.

Site visits to the road sections to be repaired under the proposed Project as well as to the production yard of one of the state contractors were also carried out as part of the appraisal visit.

The environmental specialist further participated in discussions on road safety in a joint meeting with IFC’s industry specialist, MAD and the Republic’s Traffic Police.

E & S Project Categorization and Applicable Standard

While all IFC’s Performance Standards (PS) 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 land acquisitions (PS5) are foreseen as a consequence of the project, since the project is focusing on (re-) establishing a sustainable quality of the existing road network. The project will therefore also not affect natural or modified habitats (PS6), and no impacts are expected on cultural heritage (PS8). The Republic of Maryi El has two main ethnic groups; Ethnic Russians represent approximately 47 % of the population, while the Mari ethnic group represents approximately 43% of the population. The Mari ethnic population is present in both rural and urban areas of the Republic and is represented in the local legislative and executive bodies of the Government. The Republic of Maryi El has two accepted languages, Mari and Russian, used in its school system based on local preference. The Mari are not identified as distinct group and are not collectively attached to geographically distinct habitat or ancestral territories in the project area, and, thus, are not considered Indigenous Peoples under the PS7.

This is a Category B project according to IFC''s Environmental and Social Review Procedure, because the Project is aimed at conserving the Republic’s existing road network and minimal adverse impacts on environment or community health and safety are expected. Potential adverse social and environmental impacts are limited and readily mitigable, as described in the following sections.

Environmental and Social Mitigation Measures

PS1: Social and Environmental Assessment and Management Systems:

E&S assessment practices required by Russian legislation were evaluated during the first IFC project and proved to provide adequate capacity to manage direct impacts of road (re)construction. Environmental protection measures constitute an integral part of the design documentation. These measures are the subject for approval by state regulators and, when approved, are mandatory for implementation by construction contractors as part of the construction project.

MariyskAvtoDor (MAD), which is implementing the projects under the loan, is indirectly exposed to the E&S risks associated with the environmental, health and safety performance of their contractors. These risks are mainly related to occupational health and safety risks arising from physical hazards of moving vehicles and operating machinery. Reportedly, there were no safety incidents with the project workers for the last three years at least. However, MAD acknowledges these risks and includes specific EHS contract requirements in the tender documents aimed at avoiding accidents among subcontracted project workers. The tender documents require: (i) the winning bidders to develop a transportation management plan for road repairs that include measures to ensure work zone safety for construction workers and the travelling public; and (ii) the transportation management plan should be approved by the Traffic Police prior to commence of any construction/repair works. Further, the contractors are obliged to follow regulative requirements of the Russian Federation related to traffic safety, occupational health and safety; fire safety; environmental protection; and community health and safety.

The inclusion of the above requirements ensures the fulfillment of item 2 of the ESAP agreed under first IFC loan.
To further enforce contractors'' compliance with the EHS requirements, in line with item 3 of the ESAP, MAD will:

1) Include key EHS indicators to its regular inspection''s checklist (including conformity to the transportation management plan; use of personal protective equipment and high-visibility safety apparel; implementation of work rotation programs to reduce cumulative exposure to noise and other physical hazards; etc.).

2) Oblige Contractors to i) promptly report any significant environmental and social events related to the Project (including traffic accidents within work zone; injuries and fatalities of working personnel; ecological damage/destruction; legal/administrative notice of violation; negative media attention; labor unrest or disputes; grievances received from local communities and travelling public); ii) describe measures the Contractor is taking, or plan to take to address the issue and prevent its re-occurrence in the future; and iii) keep MAD informed of the on-going implementation of those measures within the agreed timeframe.

3) Introduce financial penalties if agreed measures to address deficiencies identified during the physical inspection of the site or provided in the contractor’s report are not timely implemented.

To enhance its E&S management practices, MAD will strengthen its internal capacity by assigning a designated professional to oversee EHS related issues and will train its key employees as well as selected contractors in environmental, health and safety management through a workshop facilitated by IFC at the end of March 2010, in line with item 1 of the ESAP.

PS2: Labor and Working Conditions:

The employment, both within the Road Agency and among contractors, is conducted in accordance with Russian Labor Code. Russia fully endorses the ILO core labor standards and these are incorporated in the national labor laws. Hereby the core labor standards, as defined in Performance Standard 2, are guaranteed for employees at companies, which strictly follow the legal requirements.

Employees of the large state contractors are organized in trade unions. In addition to the requirements of the national legislation, terms of employment and dismissal, working conditions, wages and social benefits for employees are addressed in collective agreements. State companies exceed legislated standards of workers’ benefits.
Working conditions and terms of employment that are compliant with national law are also guaranteed to seasonal workers, which are hired for road works during construction season (up to 6 months).

Both state and private contractors have documented working conditions and terms of employment, which are communicated to all workers in a written form prior to their start of work.

The companies awarded contracts from MAD strictly follow the commitment to minimum age requirements. Schoolchildren older than 13 are only accepted for non-harmful works during their summer vacation. OHS issues are addressed via training and through the provision of appropriate personal protective equipment for all (permanent and temporary) staff.

The safety data for the years 2007-2009 have been reviewed for Medvedevskoye DRSGUP, one of the state contractors. It shows steady performance with Lost-Day-Accident/Million-Man-Hours (LDA/MMH) ranging from 0 to 1. The three year average below 1 LDA/MMH represents a fully acceptable performance, better than the international average incidence rate in road sector.

PS3: Pollution Prevention and Abatement:

Limited environmental impacts, which may arise from road repair and reconstruction mainly include generation of road resurfacing waste; fugitive dust emissions; and exhaust emissions and oil spills associated with heavy equipment operation.

During the physical inspections of the work zones, specialists from MAD will monitor environmental performance of contractors and will agree on specific corrective measures in case of excessive air emissions or disorderly handling of waste. Typically proper maintenance of work vehicles should minimize air emissions to acceptable levels.

Road resurfacing waste is to a high rate recycled as reclaimed asphalt pavement or as a base.

Associated environmental impacts of the Project include air emissions from asphalt production plants. These facilities can be a source of significant air emissions, if not properly controlled. State regulatory authorities are inspecting asphalt production plants at the beginning of construction season and verify that actual air emissions are not in excess of limits specified in the permit. MAD will ensure, through contract specifications, that each plant within the territory of the Republic, which is supplying asphalt for the Project, has the required environmental certification.

PS4: Community Health and Safety:

Significant community health and safety issues associated with the Project mainly include pedestrian and traffic safety.

The planning process for the road reconstruction has in the past included special measures to be taken where roads have revealed “black spot” locations. The “black spot” approach used has, however, not shown consistency in identifying long term risks but rather revealed human error patterns, resulting in the identified “black spot” locations migrating year on year even without actions taken.

As part of the proposed Project, MAD and IFC agreed to carry out a safety inspection of the Republic’s core road network with the use of iRAP (International Road Assessment Programme) consultants and methodology. Following the inspection, road safety countermeasures will be developed forming a basis for a Safer Roads Investment Program. Priority countermeasures agreed between the Republic and IFC will be implemented under the 3-year program financed by IFC.

Stakeholder Engagement

To facilitate the inclusion of concerns and complaints of the communities and travelling public, MAD will oblige its contractors to place telephone numbers and contact person names of MAD and the Contractor on the Information Board installed in front of any given work zone. Contact information for grievances will be supported by the recording and handling system, including assigning of the trained responsible staff.

The Project does not involve any new construction and, therefore, no environmental impact assessment was carried out for this Project. Local disclosure of environmental and social information related to the Project will include publishing of this ESRS in Russian and Mari on official website of the government of Republic of Mariy El: http://gov.mari.ru/minfin

For inquires about the Project please contact:

Salnikov Alexander Anatolyevich,
Director of Mariyskavtodor
Russian Federation,
Republic of Mariy El,
424036, the City of Yoshkar-Ola
Proletarskaya street, 26

Tel.: +7 (8362) 686-105
Fax: +7 (8362) 460-665

E-mail: avtodor@mari-el.ru

**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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