PROJECT

Projects

Environmental & Social Review Summary

Project Number

7283

Company Name

PROMIGAS SA ESP

Date ESRS Disclosed

Feb 5, 2010

Country

Colombia

Region

Latin America and the Caribbean

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 26, 1996
Signed : Dec 4, 1996
Invested : Apr 18, 1997

Sector

Oil and Gas Transport or Pipeline

Industry

Metals and Mining

Department

Gbl Infrastructure & Natural Resources

Project Description

-5- May 14, 1996

Environmental Review Summary (ERS)

Project Name Colombia-Promigas

Region Latin America & Caribbean

Sector Infrastructure

Project No. 007283


1. This project involves Promigas’ three year expansion plan which consists primarily of: (i) the construction of a 25 kilometer loop to its main pipeline which transports gas from the Guajira gas fields to Cartagena in northern Colombia; (ii) the acquisition of an existing 192 kilometer pipeline which connects Cartagena and Promigas’ main pipeline with the Jobo-El Tablon gas field in north-central Colombia; (iii) the exercise of an option for the acquisition of a 25 percent stake in Centragas, the Colombian gas transportation company operating the 575 km gas pipeline from Ballena to Barrancabermeja; and (iv) investments to support the expansion programs of three of its affiliated gas transportation and distribution companies: Transmetano S.A., in Medellin; Transoriente S.A., in Bucaramanga; and Gases de Occidente S.A., in Cali.

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

· right-of-way construction impacts, including sensitive habitats and stream crossings;
· right-of-way maintenance and mitigation implementation;
· indigenous populations;
· solid and liquid waste disposal; and
· employee and public safety.

The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable Government of Colombia (GOC) and World Bank environmental policies and guidelines. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.

Guajira-Cartagena Pipeline Loop

3. The proposed route of the 25 km loop is parallel to an existing pipeline; acquisition of the additional right of way required for the loop has been completed. In 1991, Promigas submitted an Environmental Assessment (EA) for this loop to INDERENA. On the basis of the EA, INDERENA issued an environmental permit for the construction of the loop to the existing main gas pipeline and required the implementation of the Environmental Management Plan (EMP). The Ministry of Mines and Energy also issued a resolution in October 1991 authorizing the construction of this loop.

4. The EMP includes appropriate handling of residues, restoration of access roads after construction, reclamation of vegetation, prevention and stabilization of erosion, protection and reclamation of water crossings, detailing of operation and maintenance manuals for technical and professional workers use, assignment of two environmental inspectors who will report to INDERENA and public consultation and community participation programs.

5. The EMP also lists specific actions related to the proximity of the pipeline to the Salamanca and Sierra Nevada de Santa Maria National Parks including appropriate final disposal of excavated material next to mangrove areas, reclamation of vegetation in mangrove areas, strict prohibition of installation of compression stations or receiving tramps in any area within the natural parks, and construction of additional box-culverts to increase the interchange of water between the sea and the Santa Maria wetlands per INDERENA specific recommendations.

Cartagena to Jobo-El Tablon

6. Promigas acquired this existing 192 km pipeline to transport and distribute the natural gas between Cartagena and Jobo-El Tablon. In May 1995, an environmental audit prepared by Cigam Ltda. on behalf of Promigas was completed. This environmental audit established the existing environmental situation along the pipeline and identified that past environmental practices along the pipeline have been poor. The main findings of the audit included advanced erosion levels along the right of way and dangerous exposure of the pipeline as a result of erosion, poor pipeline cathodic protection, limited inspection and maintenance during the 30 years of operation of the pipeline, occurrence of leaks and ruptures, no signalization along the pipeline path, deterioration of accessories such as valves, tramps, etc., and lack of environmental management and contingency plans.

7. Remediation actions recommended in the environmental audit include: erosion control and pipeline protection programs; consideration of alternate routes for the portions of the pipeline in close proximity to populations; in collaboration with the local authorities, the initiation of educational programs in the affected communities to ensure they will respond appropriately in case of potential accidents; the commencement of a signaling program in the neighboring populated areas and at water and road crossings; reconsideration of valve locations and distances as well as the installation of additional valves; the commencement of the evaluation of the internal conditions of the pipeline; and the development of a pipeline maintenance program including reclamation of vegetation and early detection of erosion. Other recommendations include the detailing of environmental management and contingency plans including permanent pipeline supervision and maintenance, annual environmental audits, and public consultation and community participation programs.

8. Although the pipeline was built prior tothe GOC requirements for environmental permits, the results of the 1995 environmental audit have served as the basis for Promigas’ Corrective Action Plan (CAP) for this component of the project to ensure the pipeline is upgraded to meet GOC and World Bank environmental policies and guidelines. The CAP identifies the specific actions required at the pipeline as well as the estimated cost and implementation schedule for each mitigation action. The CAP will be implemented between 1996 and through 1997. The EMP and the Contingency Plan for this CAP will be completed by June 30, 1996.

Ballena-Barrancabermeja

9. This component of the project involved the construction of a 575 km gas pipeline, 31 laterals, a dehydration plant, a telecommunication system, and metering and regulation systems. The pipeline was completed in February 1996. In November 1993, Ecoforest Ltda. prepared an EA on behalf of the sponsor for this component of the project. The EA evaluated the hydrological and environmental conditions of the water bodies to be crossed by the pipeline as well as the archeological situation in the area of influence of the project. The EA presented the socioeconomic characteristics of the area affected by the project. It evaluated the conditions of the affected properties in the area and identified three groups of the Wayuu community, in la Guajira in the northern part of Colombia. This is the only indigenous community in the area of influence of the project. The EA also identified the types of vegetation along the right-of- way concluding that for the most part the natural forest has been replaced by timber harvesters and agricultural and livestock activities. Very low percentage of primary forest can be found between Cuestecita and Ballena in the Wayuu indigenous community settlement.

10. The Environmental Management Plan (EMP) implemented in the project is also part of the EA. The plan includes specific actions which were used to mitigate the different activities in the project, including construction and maintenance of temporary work facilities, pipe transportation and handling, clearing the right-of-way, dredging of trenches, laying pipe, road crossing, hydrostatic tests, archeological surveys prior to any movement of soil, or crossing of river streams and swamps. The EMP includes specific actions which were used to manage appropriate handling of both solid and liquid wastes from the temporary work sites, reclaim vegetation along the right-of-way with the same type of vegetation found originally , protect and reclaim water crossings, restore aquatic habitat, protect wildlife, protect archeological sites if found, and prevent and stabilize erosion.

11. The EMP details actions to improve the infrastructure of indigenous communities not impinging on their lands and lifestyle. The mitigating actions for the potential impacts in the indigenous communities established in the EMP respond to the expectations of the community. Based on conversations with Wayuu community leaders, rather than monetary indemnization they requested assistance in the construction of schools, water supply facilities, ponds for livestock, and health centers. This was carried out during construction.

12. The EMP details the control monitoring and maintenance procedures for each project activity. An environmental inspection team appointed by Centragas, the operating company, is in charge of conducting periodic inspections for each of these activities during and after construction to ensure compliance with the objectives of the EMP. The team maintains logs of the various inspections, including, effectiveness of erosion measures, vegetation reclamation results, wildlife finds, archeological discoveries, and stream and water crossing monitoring samples results.

13. The EMP also contains an emergency response and contingency plan to minimize the potential impacts caused by: natural gas leaks to the atmosphere, fire, explosions, the presence of toxic gases, and fuel and lubricant spills. Occupational health and safety issues, including general worker safety are adequately covered in the EMP.

14. Construction contractors are required to conduct a risk analysis and prepare an action plan for their activities in the project. In addition, contractors were required to receive environmental training prior to commencing construction activities.


Affiliated Gas Distribution Companies

15. The project includes investments in the expansion of three of its affiliated gas distribution companies: Transmetano S.A., Transoriente, S.A. and Gases de Occidente, S.A.

16. Transmetano S.A. This component of the project includes the construction of a 149 km gas pipeline between Sebastopol and Medellin and of twelve laterals along the main pipeline. Transmetano S.A. will design, construct, operate, and implement the EMP. The sponsor has incorporated environmental planning since the inception of the project and will continue during planning, construction, operation, and close-up.

17. In April 1995, Transmetano prepared an EA responding to the GOC environmental regulatory requirements for projects of this nature. The EA evaluates alternatives and impacts for the twelve laterals to be built as part of this component, identifies control and mitigation actions for the alternatives considered, includes a preliminary Environmental Management Plan (EMP) and presents recommendations. Three alternatives for each one of the twelve laterals were considered. The parameters considered in the evaluation of the alternatives included erosion, vegetation, earth movement, sources of construction materials, residues final disposal, and seismic aspects. The preliminary EMP outlines environmental mitigating actions during construction and operation, contingency plan actions, and community participation programs. It also includes monitoring plans and proposes sensitive forest areas and seismic studies.

18. Transoriente S.A. This project’s component includes the construction of a 104.2 km gas pipeline connecting Barrancabermeja-Payoa-Bucaramanga. In April 1996, Transoriente produced an EIS that identifies and qualifies the environmental impacts and presents an Environmental Management Plan (EMP). The EMP identifies twenty areas of concern, including communication, access roads, right-of-way access, pipeline installation, erosion and sedimentation, environmental training, and public consultation. For each area evaluated, the EMP specifies the actions that generate the impact, identifies the impacts, presents mitigation actions, presents control and monitoring programs, and identifies responsible parties to implement the actions. The EMP also includes a contingency plan. Implementation and updating of the EMP is the responsibility of the company.

19. On March 19, 1996, the Ministry of Environment issued an environmental permit. This permit outlines environmental actions to be implemented by Transoriente S.A. These actions are in line with the World Bank requirements as it relates to the selection of the best environmental alternative, public consultation, and the submittal of reports demonstrating the implementation of the EMP.

20. Gases de Occidente S.A. In November 1995, Gases de Occidente S.A. prepared an EA responding to the GOC environmental regulatory requirements for projects of this nature. The EA evaluates alternatives and impacts, identifies control and mitigation actions, includes an Environmental Management Plan (EMP) an a preliminary Contingency Plan. The EMP identifies the areas of concern including activities during construction, handling of construction debris, erosion and sedimentation, environmental management practices in the temporary working and staging areas, public consultation activities, seismic risk prevention, and workers health and safety programs. Implementation and updating of the EMP is the responsibility of the sponsor. The Contingency Plan presents the issues to be considered in the plan including: Personnel training, workers safety, public education and awareness, type of emergencies and procedures to be implemented in case of accidents.

21. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the CAP, in the Cartagena to Jobo-El Tablon component, the proposed project is being designed to meet Government of Colombia requirements, and World Bank policies, and environmental, health and safety guidelines.

22. IFC will monitor the progress of implementing the CAP as well as ongoing compliance with Government of Colombia and World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by Promigas and by conducting periodic site reviews during project supervision.



L:\WPEU\JOSEFINA\COLOMBIA\PROMIGAS.ERS
May 17, 1996 5:05 PM

Environmental and Social Mitigation Measures

Broad Community Support