While all Performance Standards are applicable to this investment, IFCs 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. If IFCs investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards

PS 1 – Assessment and Management of Environmental and Social Risks and Impacts
PS 2 - Labor and working conditions
PS 3 - Resource Efficiency and Pollution Prevention
PS 4 – Community Health, Safety and Security
PS 8 – Cultural Heritage
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards

The projects to be financed by IFC, although they cover a wide range of sectors and activities, have a potential for limited negative environmental and social impacts that are mainly activity- and site-specific, largely preventable and/or reversible, and that can be addressed through the development of specific mitigation measures and proper implementation. Risks discussed in this ESRS mainly consist of those associated with the development of urban infrastructure and include management of contractors, occupational health and safety (OHS) issues during construction/rehabilitation works, and community health and safety. Issues related to cultural heritage (PS8) are particularly associated with specific activities during the rehabilitation of the Citadel; these issues include the preservation and re-utilization of cobblestone pavement areas and potential findings during excavation works. Key mitigation measures are described in the ESAP.

No land acquisition or physical or economical displacement, conversion of habitats, or issues related to Indigenous Peoples are expected as part of this investment (projects are located on urban land owned by the Municipality, none of the projects require any resettlement, and there are no known indigenous people occupying any of the sites). Therefore, PS 5 “Land Acquisition and Involuntary Resettlement”, PS 6 “Biodiversity Conservation and Sustainable Natural Resource Management”, and PS 7 “Indigenous Peoples”, are not considered to be applicable.

Given the scope and scale of the potential impacts associated with the proposed investment, it has been identified as Category B under IFC’s 2012 Policy on Social and Environmental Sustainability.

IFC's appraisal considered the environmental and social management planning process and documentation for the project and gaps, if any, between these and IFCs requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through the implementation of these measures, the project is expected to be designed and operated in accordance with Performance Standards objectives.

IFC’s assessment considered the Municipality’s commitment to long term sustainable development in its investments and the following actions are expected to guide the Project and ensure compliance with PS1 provisions:



Environmental and Social Assessment:

All projects included under the investment program are approved for funding by the EU and had to go through an extensive approval process to qualify. Furthermore, according to Romanian legislation all new projects with potential for negative environmental impacts need to have an Environmental Impact Assessment (EIA). In general, EIA procedures are in compliance with EU requirements. The main legislation regulating the EIA process in Romania are: Order 863/2002, which outlines the guidelines for the three stages (screening, scoping, and quality analysis) of the EIA; Order 19/210, which describes guidelines for an appropriate assessment procedure; and Order 878/2005, which outlines the requirements for public access to environmental information.



All projects need to go through an assessment procedure (screening stage) by the competent authorities (Minister of Waters and Environment Protection and the Local Inspectorates for Environmental Protection) that may require, based on expected impacts, a full EIA with appropriate assessment (significant impacts ), an EIA with a limited assessment (limited impacts), or just an appropriate assessment (no significant impacts). The EIA should comprise an evaluation of the potential environmental impacts associated with the project and the development of measures to avoid, mitigate, or compensate for adverse impacts.



For the projects included in this investment, preliminary EIA studies were undertaken during the design phase and submitted for review to the Minister of Water and Environment Protection. Based on the Ministry review, none of the projects required the development of a full EIA. Approval was granted to all projects subject to certain permit conditions.



Management Program:

The Municipality has a certified ISO 9001 quality management system in place and plans to start the process for ISO 14001 (environmental management system) certification in the near future.



The actual execution of work for all projects is carried out by contractors selected through a strict tendering process regulated by local procurement law. In general, for each project the responsible department develops all the necessary technical documentation for the tendering stage, including minimum qualifications and EHS provisions as required by law. Contractors are required to develop the necessary OHS and EHS procedures, following requirements of Romanian law, which are then reviewed and approved by the project supervisor. In addition, the contractor is required to obtain and remain current on all the necessary permits for construction.



For the majority of the Projects the bidding process is either in an advanced stage, with individual tenders having be
en published, or in the bidding phase. Some contracts have already been awarded and several projects are at different stages of construction. As outlined in the ESAP, the Municipality will ensure that relevant IFC requirements and provisions related to Performance Standards, as well as general and sector specific EHS guidelines, are included in future tendering documentation and contract requirements.



Both the transport (RATT) and district heating (COLTERM) companies have formal and certified environmental health and safety (ISO 14001), quality assurance (ISO 9001), and occupational health and safety (OSHAS 18001) systems in place. All key elements of the environmental management system, such as policies, procedures and practices, are therefore well established. Job risk assessments, relevant work safety training to general and specific jobs activities is provided to all employees.



Organization:

The Municipal Environmental Department is responsible, among other functions, for issuing environmental and waste management permits and to perform environment monitoring and to monitor ongoing projects for compliance. The environmental monitoring unit includes one director and four inspectors assigned to regularly visit on-going projects.



Standard contracts signed by the Municipality for any of its project required the main contractor to have a qualified person in charge of labor safety on site. Only recently, occupational health and safety (OHS) issues are under the responsibility of the technical director assigned by the Municipality to oversee the project technical implementation. Typically each technical director follows 3 to 4 projects and, although there is a weekly management meeting, there is no overall HS coordination between technical directors on HS matters. As outlined in the ESAP, the Municipality will appoint an OHS coordinator to oversee HS practices, to coordinate project technical managers, and to ensure OHS compliance at sites is achieved.



COLTERM and RATT have environmental and HS departments with enough personnel to provide sufficient coverage of EHS issues relevant to their specific operations.



Training:

Recently the technical directors have completed a one month HS training covering security plans, occupational health and safety plans, and site management.



COLTER and RAPP provide continuous training to their personnel following pre-defined schedules and according to job specifications.



Monitoring:

The municipality’s environmental personnel regularly inspect on-going projects for issues related to waste, water, air and soil. On-going projects are visited at least twice per week or more frequently if necessary or critical issues are present. Projects with potential significant impact are reported to be visited on a daily basis.

Contractors’ HS compliance at sites is supervised by the municipality technical director assigned to the project who is also responsible to verify that all contractor’s
EHS documentation submitted for the project is compliant with national and local requirements and standards. Technical directors visit work sites on a daily basis or, for smaller, non-critical projects, at least twice per week. There are no formal HS procedures or reports filed unless a contractors’ non-compliance is deemed serious enough. Most communication with the contractor is verbal and only in extreme cases the technical director exercises the option of halting activities until issue(s) are resolved. As outlined in the ESAP, the Municipality will develop framework HS procedures and reporting formats to ensure that contractor’s compliance at sites is documented and tracked.

The Romanian labor code law No. 53/2003 provides extensive protection for workers and ensures that a large set of worker benefits must be provided. National labor law addresses the right to work, prohibits forced labor, discrimination based on gender, race, age, ethnic association or nationality, and is consistent with the International Labor Organization’s core labor standards (Romania is signatory of all 8 IOL fundamental conventions) and IFC’s Performance Standard 2.



Human Resource Policy and Management:

The Municipal Human Resources (HR) department oversees all internal procedures related to employment, contract negotiation, and internal grievance protocols for the current 478 full time employees. The Municipality has not developed an internal HR policy or manual but follows the national labor code and relevant laws and regulations. All full time employees signed and retain a copy of their contracts in which all terms of employment, such as wages and benefits, hours of work, overtime arrangements and overtime compensation, annual and sick leave, maternity, vacation or holiday are specified or referenced to relevant national law provision.



COLTERM’s and RATT’s HR departments have developed internal manual and procedures based on national laws and, where in force, agreements with national labor associations (e.g. severance packages for RATT workers).



Labor unions are active at the Municipality and at the operating companies COLTERM and RATT. Membership varies from less than 50% at the Municipality to more than 90% at COLTERM.



Retrenchment:

No retrenchment is expected to be triggered by any of the projects to which IFC funds may be directed.



Grievance mechanism:

The Municipality and its two operating companies COLTERM and RATT have established formal internal grievance mechanisms. Forms are available to file formal complaints and procedures are in place to investigate grievances and to communicate the results to the interested parties. Appointed committees are in place to oversee the grievance process and to decide in these matters.



Protecting the Work Force:

The minimum legal employment age in Romania is 16 with strict terms defined by law on employment of workers under this age. No forced or child labor is used at the Municipality or its two operating companies (COLTERM and RATT) and the Municipality or its operating companies do not employ anybody below the age of 18.



Occupational Health and Safety:

The main OHS issues of the Projects are associated with the construction phase. Issues include, among others, potential exposure to fugitive dust emissions; movement of heavy equipment; noise, working at heights; trenching and excavation hazards; and traffic. The management of construction hazards is the responsibility of the project contractor(s) that have to comply with all local and national regulation and standards throughout the construction phase. As part of the contractual agreement, the contrac
tor(s) have to submit their own OHS and health plan to the Municipality for approval. Compliance is supervised by Municipal project technical managers assigned to the working sites.

However, it has been observed during the pre-appraisal and appraisal visits that contractors’ compliance with OHS at certain sites leaves room for improvement. As listed in the ESAP, the Municipality will develop and implement site specific OHS checklists, based on local and IFC standards, and reporting procedures to inform management of non-compliances. In addition, a tier-based protocol, based on significance and recurrence of non-compliances, will be developed to help inspecting personnel ensure contractors’ compliance with OHS standards and procedures.



COLTERM and RATT, as part of their integrated management system, have assessed OHS risks for relevant tasks performed as part of their operations and have developed relevant standard operating procedures. Standard PPE for personnel is provided, and compliance enforced, to all workers and additional PPE requirements (e.g. ear protection, welder’s mask) are required for specific tasks.



All employees undergo a preliminary medical check before hiring and on a yearly basis as mandated by law.

Potential negative environmental impacts during the Projects implementation are principally associated with construction activities and include: increased rate of surface water runoff; generation of solid waste; air emissions; truck and heavy equipment traffic and noise; potential hazardous materials and hydrocarbon spills associated with heavy equipment operation.



Similar to OHS, and as specified in contract requirements, management and mitigating measures for environmental issues during the construction phase is the responsibility of the contractor(s) as they have to comply with all local and national regulation and standards and construction permits. Compliance is ensured through supervision by Municipal personnel monitoring the working sites. However, several environmental issues were observed during IFC visits that need improvement. As listed in the ESAP, the Municipality will develop and implement site specific environmental check lists, based on local and IFC standards, and reporting procedures to inform management of non-compliances. In addition, a tier-based protocol, based on significance and recurrence of non-compliance, will be developed to help inspecting personnel ensure contractors’ compliance with environmental standards and procedures.



Resource Conservation, Energy Efficiency:

The Municipality has developed an overall strategy to reduce emissions. In 2010 the Municipality approved a Sustainable Energy Action Plan that spells out the steps the Municipality will take to reduce its overall greenhouse gases (GHG) emissions 20% by the year 2020. Baseline values for each of the main sectors (i.e. transport, energy, residential, institutions, waste, agriculture, water, industry and business) were measured in 2008 and specific reduction targets established for each industry. Currently the Municipality has completed the scheduled 5 year assessment to monitor progress against target values.



Currently, the estimated GHG emission from the municipality district heating (fuel) and electricity consumption are 360,254 and 283,153 metric tonnes of CO2 equivalent per year respectively. Improvements related to the district heating project will have significant positive impacts on GHG emission with an average reduction estimated of about 50,760 tonnes of CO2 equivalent per year. Furthermore, this project will reduce nitrogen oxides (NOx) and sulfur dioxide (SO2) emissions from the plant by bringing emission values within EU standards. Additional GHG reduction will derive from several components of the traffic sector projects (e.g. traffic management system).



Contractors for each project are responsible to apply and obtain the required waste permit, which includes hazardous and non-hazardous waste, from the Municipality before they start construction. Inspections, from both the environmental monitoring and waste management department, are carried out on a regular basis to ensure compliance.



Dust emissions and noise a
re routinely checked by the environmental team during site visits; if potential problems are observed the inspector notifies the environmental monitoring department for further testing.

The main community health and safety risks associated with the Project relate to work sites access, traffic and pedestrian safety. Other impacts include localized dust and noise generation, traffic and pedestrian safety in connection with road and sidewalk works, and emergency preparedness. Potential risks to community health, safety and security are evaluated in the planning and design stage but implementation of appropriate measures and mitigations during the construction phase are under the contractor(s) responsibility. As part of the contractual agreement the management of site security and public safety is the responsibility of the project contractor(s) that have to comply with all local and national regulation and standards throughout the construction phase. However, as observed during certain site visits, site security and public access control should be better enforced. As outlined in the ESAP, the Municipality will develop specific checklist to ensure that all worksites are fully secure, are not accessible to the general public, and that provisions are in place to ensure public safety during construction activities that may endanger pedestrians and local traffic. Furthermore, the Municipality will develop specific procedures and liaise with contractors and the general public to ensure minimum disturbance of local business and commercial activities during road works.



Rehabilitation of existing building will comply with local fire regulations. Rehabilitation work only involves minor structural work (e.g. foundation strengthening, some interior upgrading). New buildings will be designed and constructed according to local codes that are generally in line with EU standards.

The rehabilitation of the Citadel will involve excavations to change and/or improve underground utilities (e.g. water, sewage, electricity, heating, gas, telecommunications), and the resurfacing of several streets and squares. In particular, rehabilitation works will include Union square where the old granite cobblestones pavement will be lifted, saved, and put back in place. Other small areas where old cobblestones are present (e.g. at the base of historical buildings around Union square) will also be preserved. In addition to the general requirements with respect to archeological artifacts or elements of cultural significance outlined in the contract specifications, particular attention will be placed in the lifting and storage of the cobblestones to avoid damages and theft. As specified in the ESAP, the Municipality will develop a monitoring procedure to ensure the proper lifting and storage of the old cobblestones by contractor(s). Furthermore, a chance find procedure and specific provisions will be developed to ensure that any artifact and/or historical finding encountered during excavation work will be preserved and/or handled in coordination with the proper authorities.

In general, the required public participation during the EIA process depends on the particular characteristics of the project or site. The process is co-coordinated by the competent authorities and includes identification of stakeholders, public concerns, location and instruments of information dissemination, and identification of the appropriate ways for public consultation.

As part of project development, the Municipality has had extensive consultations with the public. Community engagement included consultation and debates with neighborhood advisory councils, interested groups and associations, and non-government organizations and institutions. Individual projects, where required, have been modified to accommodate public requests or concerns. For example, the final design for the rehabilitation of the Citadel project include several modifications (e.g. height of the sidewalks was reduced and connection of individual buildings telephone and electrical utilities run underground to eliminate hanging wires) to address public concerns and suggestions. Work groups and forums were organized to include the participation of interested SMEs a well as business and environmental representatives of the civic society. Individual project information is also available at the Municipality website http://www.primariatm.ro.

External Grievance:
Complaints and grievances from the general public or associations can be submitted to the Municipality in written form, by calling the Municipality Call Center, or by e-mail. Each complaint is forwarded to the competent department, it is verified and discussed with the interested parties, and petitioner(s) informed of the outcome. Grievances on specific projects can be also directed to individual project directors.

City Hall of Timisoara
Boulevard C. D. Loga Number 1
Timisoara, 300030, Romania

Broad Community Support is not applicable for this project

Title	Anticipated completion Date	Status	Comments	Completion Date
Ensure that relevant IFC requirements and provisions related to Performance Standards, as well as general and sector specific EHS guidelines, are included in future tendering documentation and contract requirements related to the IFC-financed projects	12/29/2014 05:00:00 PM	Completed	Completed	04/22/2014 05:00:00 PM
Appoint an OHS coordinator to oversee OHS practices, to coordinate technical directors, and to ensure OHS compliance at sites is achieved.	01/30/2014 01:30:00 PM	Completed	Completed	05/29/2014 05:00:00 PM
Develop and implement the following: · framework OHS procedures and reporting formats to ensure that contractor’s compliance at sites is documented and tracked. · site specific OHS and Environmental check lists, based on local and IFC standards, and reporting procedures to inform management of non-compliances · a tier-based protocol, based on significance and recurrence of non-compliances, to help inspecting personnel ensure contractors’ compliance with OHS and Environmental standards and procedures. Protocol to ensure that all worksites are not easily accessible to the general public, and that provisions are in place to ensure pedestrian and traffic safety during construction activities.	03/30/2014 02:30:00 PM	Completed	Completed	11/20/2014 05:00:00 PM
Develop and implement a procedure and liaison between contractors and the general public to ensure minimum disturbance of local business and commercial activities during road works.	03/30/2014 02:30:00 PM	Completed	Completed	11/20/2014 05:00:00 PM
Monitor the proper lifting and storage of the old cobblestones by contractors to ensure that this is conducted properly.	12/30/2014 05:00:00 PM	Completed	Completed	02/15/2015 05:00:00 PM
Develop chance find procedure and specific provisions will be developed to ensure that any artifact and/or historical findings encountered during excavation work will be preserved and/or handled in coordination with the proper authorities.	01/30/2014 01:30:00 PM	Completed	Completed	08/03/2014 05:00:00 PM