PROJECT

Projects

Environmental & Social Review Summary

Project Number

7104

Company Name

Compañía Anónima Nacional Teléfonos de Venezuela

Date ESRS Disclosed

Feb 5, 2010

Country

Venezuela, Republica Bolivariana de

Region

Latin America and the Caribbean

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Apr 9, 1996
Signed : Jun 7, 1996
Invested : Jun 17, 1996

Sector

Fixed Telephony

Industry

Telecommunications and Technology

Department

TMT, Venture Capital & Funds

Project Description

March 8, 1996

Environmental Review Summary (ERS)

Project Name Venezuela- Communicacion Anonima Nacional Telefonos de Venezuela (CANTV)

Region Latin America and Caribbean

Sector Infrastructure

Project No. 007104



1. In 1991, CANTV was granted a license for the operation of the Venezuelan national and international telecommunications company, and implemented a major modernization and expansion program. The proposed project is to assist in the financing of the 1996-1997 investment program, which includes the installation of 771,600 new telephone lines, further modernization of the long distance network, and the expansion of CANTV’s cellular subsidiary. Project development and operation will involve above ground and buried telephone lines, microwave and radio towers, switching centers, and operations and maintenance facilities. Upgrades and replacement of existing equipment, and the identification and assessment of site contamination from present or past activities has largely been accomplished in the four year period since privatization.

2. This is a category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
The review of this project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal completed by IFC’s staff. The following potential environmental, health and safety impacts of the project were analyzed:

· right-of-way (ROW) alignment;
· development of previously undisturbed land;
· solid and liquid waste management;
· PCBs (polychlorinated biphenyls);
· fire prevention and emergency response; and
· general employee safety.

The information provided by the sponsor addressing the issues listed above is summarized below.

3. Laws in Venezuela applicable to ROW establishment are well developed. CANTV’s ROW activities will, in addition to complying with applicable World Bank policies and guidelines, be required to abide by the following Government Laws:

· Right -of-Way and Electric Conductors Law;
· Environmental and Organic Law;
· Law of Public and Common Lands;
· Law of Conservation and Maintenance of Public Works and Installations; and
· Forest Law of Land and Water.

CANTV have confirmed that no new ROW or other structures such as transmission stations are to be created/constructed in National Parks or other sensitive areas. In addition, no rainforest will be disturbed. No resettlement of people is anticipated as part of necessary land acquisition. For any new ROW or other structures (e.g., cable lines, cellular or microwave towers) traversing or located in National Parks or environmentally sensitive areas that may be established in the future, CANTV has committed to providing IFC with a ROW impact mitigation plan for clearance by IFC prior to implementation of the respective plan. These plans will address the following issues: what environmentally sensitive areas will be traversed (e.g., rainforest, mangroves, National Park etc.); what the environmental impacts will be; and how these impacts will be mitigated.

4. There are 21 existing Transmission Stations located within National Parks. Site selection for these stations was conducted in coordination with National Parks authorities, all sites are situated along existing roads within the parks. Several of these stations required construction of short (approximately 300 m) sections of access roads. Permission to construct these roads was obtained from park authorities, maintenance of roads as per park requirements will be the responsibility of the sponsor. These installations include single structures housing electrical equipment and small stand-by generators. Fuel stored on site is provided with secondary containment. Noise and air emissions from generators is minimal and not constant, as generators are only used when power from the national grid is not available. In addition, exhaust systems are equipped with filters to capture particulate matter. No PCB based equipment is present at these sites. The sponsor will also implement the collection of used motor oil from the stations for recycling.. Monitoring of these installations is essential, and the sponsor will specifically report on these sites in the overall annual monitoring reports they are required to submit to IFC.

5. Solid and liquid waste generated as part of construction and normal operations will be disposed of in accordance with local requirements. Where feasible contractors will be required to recycle waste. No new PCB-based equipment will be installed as part of the project. There are several existing PCB-based transformers in the network, CANTV has committed to replace these units with PCB-free equipment, in a manner consistent with the World Bank PCB guidelines, in the first quarter of 1996.


6. With regard to fire safety, the company will adhere to the requirements of the Venezuelan Industrial Security Manual. Employees will be trained in emergency response procedures and provided with safety equipment as appropriate. Existing halon- based fire fighting equipment and CFC-based cooling equipment will be phased out in accordance with Venezuela’s commitments to the Montreal Protocol. No new halon or CFC based equipment will be installed as part of the project.

7. The sponsor will monitor all work areas for ambient noise and air quality. Employees will be provided with the necessary protective equipment. Numerous training courses covering such topics as first aid, industrial security, electrical risks, and explosimetry will be conducted. The company maintains an emergency brigade of 40 staff members to deal with accidents and industrial safety concerns.

8. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures and commitments, IFC concludes that the proposed project is being designed to meet Government of Venezuela requirements, and World Bank policies, and environmental, health and safety guidelines.

9. IFC will monitor CANTV’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.



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Environmental and Social Mitigation Measures

Broad Community Support