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
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards

Key environmental and social issues include management of environmental, social, occupational health and safety issues in particular emissions control, occupational health and safety during the upgrade process and during operation, labor and working conditions, community health, safety and security risks and community engagement. This project has been classified as a Category B project according to IFC’s Environmental and Social Review Procedure as the expected E&S risks to be limited, generally site specific, and can be avoided or mitigated by adhering to generally recognized performance standards, procedures, guidelines or design criteria.

The net environmental impact is expected to be positive as a result of energy efficiency gains and reduced GHG emissions. There will be no land acquisition or resettlement required as the existing municipality-owned premises will continue to be used. No Indigenous People are affected by the project and as there is no new footprint no habitat or cultural heritage will be impacted. Thus no issues have been identified in relation to IFC Performance Standards 5-8.

Key environmental and social (E&S) issues and relevant mitigation measures are described in detail in the paragraphs below. In addition, Municipality and Modern Calor will implement the attached Environmental and Social Action Plan which is focused on priority mitigation measures to achieve compliance with IFC’s Performance Standards (PSs).

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.

Although the Municipality has no documented E&S system in place, MC has integrated and certified its quality - environment management system according to SR EN ISO 9001:2008 Quality Management System Standard and SR EN 14001:200 Environmental Management System Standard. MC has a water management permit as well as an integrated environmental permit related with its operations.



For phase 1, an environmental and social impact assessment (ESIA) was carried out by a third party consultancy company in late 2011 and approved by the related environmental authorities. . An Environmental Permit was issued prior to project execution commencing.



The municipality will provide an ESIA for phase 2 in line with IFC requirements, as well as an occupational health and safety risk analysis for phase 1 and 2 including both construction and operational phases.



Tender selection criteria include strict requirements for contractors to have ISO 14001/OHSAS 18001 certificates or equivalent management systems in order to bid.



For phase 1, the bidders had to provide the EOHS documents including a program to ensure safety and health at work and ensuring and managing environmental protection. The program had to include trainings to be undertaken and an organization (including EOHS) and work program.



The municipality is using a consultant for the daily monitoring of contractor OHS performance for phase 1 and will expand this for phase 2.



The municipality will (i) review standard contracts to incorporate clauses covering conditions for worker’s accommodation and access to grievance mechanisms, and any additional conditions derived from PSs; and (ii) provide evidence of an EOHS training program for contractors.



The municipality has an environmental, occupational health and safety (EOHS) team, consisting of a manager, 7 technicians and an consultant. The consultant conducts daily checks on project locations and report findings to the project manager, who is also the EOHS Manager. The EOHS manager prepares weekly reports on the progress of the project including EOHS issues for the City Manager’s and Mayor’s review. The municipality also has an OHS committee which meets annually to discuss EOHS issues of the subsidiaries and the city.



The municipality’s project manager (EOHS manager) has overall responsibility for contractor management for the project including the EOHS issues.



MC has its own EOHS engineer who is assigned to perform the risk assessment, provide feedback to management on EOHS performance and conduct EOHS trainings.



The majority of the employees working at MC have a technical background and management has a good understanding of environmental impacts and energy efficiency.



Botosani and MC have a documented emergency preparedness and response plan which was reviewed and approved by the local authorities. Emergency plans included disasters, first aid, fire, technological accidents, and accidental releases. Emergency exercises are per
formed periodically to test the plans.



Key EOHS performance indicators such as greenhouse gas emissions, wastewater effluent quality, underground water quality, soil quality, ambient noise level, are monitored periodically with the support of an accredited laboratory and findings are reviewed quarterly by MC management. Fuel consumption and energy production are monitored hourly and recorded in daily tracking sheets. Daily, weekly, monthly and annual reports are generated for further analysis.



An annual environmental report with all monitoring data, including waste amounts, is prepared by the Municipality and submitted to local authorities.

There are almost 250 employees within Municipality and 230 employees within MC. MC is working on 3 shifts and depending on the functions, provide services 7 days a week. The project is estimated to employ 150-200 during the construction phase.



All of the municipality’s subsidiaries have their own human resources organizations.



Both the Municipality and MC have documented Human Resources (HR) Procedures related with organization and functioning, recruitment, training, skills, awareness procedures, job descriptions, ethical rules, broadly in line with IFC PS2 and Romanian Labor Law requirements.



There is no prohibition or discouragement of freedom of association. Around 76% of MC’s and 90 % of municipal employees are members of a union; all employees benefit from the provisions of the collective bargaining agreement.



There is no discrimination allowed on the basis of personal beliefs, sex or characteristics, and the municipality and MC are not anticipating retrenchment. Both the Municipality and MC have documented internal grievance mechanisms where all employees can raise and register their concerns.



In line with the Romanian laws, there is no child labor and/or forced labor employed by the municipality and MC.



MC has several programs to ensure occupational health and safety for the employees. Internal and external OHS trainings including emergency preparedness and response were conducted periodically. Mitigation measures such as personnel protective equipment, work place / equipment improvement etc. related with the workplace risks were implemented.



The staff to be employed is subject to medical testing and analysis specific to the job where he/she will be employed. The health tests including eye checks, psychological exam, blood tests and EKG for both Municipality and MC staff is done periodically, according to the legislation in force.



No serious work accidents have been recorded in the last three years, since 2010.



The municipality has a documented procedure to define EOHS requirements for contractors, as described above in the PS 1 section.

Modernization of the CHP plant will eliminate fuel oil usage and natural gas consumption will be reduced dramatically with rehabilitation of the network, as a result of improvement in heat losses. The heat losses will be reduced from 50 percent to 15 percent upon project completion. The state-of-the-art gas engines will significantly improve combined heat-and-electricity generation efficiency. Assuming a 20 year lifetime of the project, it is estimated that a total of 684,131 tons of CO2 will be avoided (or 34,207 tons of CO2 / per year).



Water is supplied from the municipality. Makeup water consumption of the transportation and distribution network was 265,852 m3/year as of 2009. It is expected that rehabilitation of the network will reduce the makeup water amount to 150,092 m3/year starting with 2012.



The municipality will ensure that effluent waste water quality (which is generated from domestic usage and water change during system maintenance) will be in line with Romanian Regulations and norms regarding the conditions of release of wastewater to the aquatic environment, which are in line with WBG’s General EHS Guidelines requirements.



Upon the completion of the project, it is estimated that NOx emissions will drop from 340 t/year to 168 t/year, SO2 from 597 t/year to 0 t/year and dust from 25.4 t/year to 0 t/year which are in line with WBG’s General EHS Guidelines.



There is a waste segregation system in place at MC. Construction wastes including used pipeline, isolation material, excavated soil, and operational wastes including waste oil, office wastes, etc. are transported, recycled and / or disposed by third party licensed waste companies and/or Municipality’s subsidiaries.



The hazardous materials usage is mainly related with water treatment, cleaning and maintenance purposes. Aluminum hydroxide, hydrochloric acid, oil and grease are the main hazardous materials in use. There is no PCB or asbestos in use in the demolished or new equipment.



There is soil contamination in the MC’s old fuel oil unloading area. As a part of phase 1, MC and the municipality have developed soil decontamination – rehabilitation plan for the contaminated area. The municipality will provide IFC with a progress report on implementation of the decontamination plan on an ongoing basis.

The project sites are within the city and construction area safety measures were in place to protect the community, including clear demarcation of construction areas; restricted access to work areas.



Modernization of the CHP plant included installation of a sprinkler system, smoke detectors and explosion proof electrical installations. Fire exits are clearly marked and signaled and a fire alarm system is installed.



The municipality and MC employ unarmed private security guards at the entrances of their facilities.

MC is owned by the municipality and shareholders are represented by members of Botosani City Council.
The municipality has procedures for communication and management of complaints to record and register the concerns of interested parties. There is an information center within the Municipality and weekly meetings are conducted with interested parties to discuss and solve any concerns.

For EU funded projects like phase 1, the Municipality shares information on project progress on its web page. Per the EU requirement, the municipality will continue to provide progress reports including E&S issues to affected communities.

The municipality and MC maintain good relations with local communities and their customers. The municipality has a formal external grievance mechanism where affected communities can raise and register their concerns and obtain information about its projects.

The municipality has a department for community engagement, “Information Center” where NGOs can attend and discuss their concerns. Citizens can also attend weekly meetings organized by the Information Center.

Detailed project information will be shared on the municipality’s and MC’s websites, the entrances of their facilities and group heat substations’ doors.

For more information please contact:

Name : Ovidiu Portariuc
Address: 1 Revolutiei Square Botosani 710236 Romania
e-mail: mailto:primaria@primariabt.ro
http://www.http://www.primariabt.ro

Broad Community Support is not applicable for this project

Botosani Heating(33606) Supervision Disclosure Snapshot – Version 2
Description	Anticipated Completion Date	Status	Comments	Completion Date
Provide an environmental and social impact assessment for phase 2 in line with IFC’s PS requirements, as well as an occupational health and safety risk analysis for phase 2 including both construction and operational	30-Jun-2014	Completed	Completed
a) For phase 2, review contracts to incorporate clauses including conditions for worker’s accommodation and access to grievance mechanisms b)Provide IFC a training program to ensure contractors will be trained.	30-Jun-2014	Completed	Completed