Environmental & Social Review Summary
Project Number
7906
Company Name
Usina Hidrelétrica Guilman Amorim S/A.
Date ESRS Disclosed
Feb 5, 2010
Country
Brazil
Region
Latin America and the Caribbean
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 23, 1997
Signed : Mar 30, 1998
Invested : Aug 13, 1998
Sector
Large Hydro - Renewable Energy Generation
Industry
Infrastructure
Department
Gbl Infrastructure & Natural Resources
Project Description
- 5 - 9 December 1996
International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)
Project Name Brazil-Guilman Amorim Hydropower
Region Latin America
Sector Power
Project No. 007906
This project involves construction and operation of a 140-MW run-of-river hydropower project on Rio Piracicaba in Minas Gerais State. The Guilman Amorim hydropower project is located on the Rio Piracicaba between the towns of New Era and Antônio Dias, about 170 km east of Belo Horizonte. The project consists of a 147-m long, 35-m high concrete diversion dam forming a 1-km2 reservoir at maximum and 0.75 km2 at minimum level. A 5.7 km tunnel will carry the diverted water to a powerhouse located 8 km downstream on the Rio Piracicaba. Because of the topography, the backwater of the reservoir is expected to reach approximately 8 km upstream from the diversion dam. The project area is the site of the 2 MW Amorim I hydropower project, built in the 1950s but now inoperational because of damage to the powerhouse. The old dam, which still exists, is located between the new dam site and the new powerhouse site. In addition to this existing dam at the project site, additional hydropower projects, also dating from mid-century, are located a few kilometers upstream and downstream of the project site. The river, therefore, has been modified by hydropower projects for over 40 years.
Initially, two separate power projects were planned for this project area by the public power authorities, and separate Environmental Impact Assessments (EIAs) for the two projects were prepared in 1991/1992 in accordance with local environmental requirements. With subsequent changes in project design and consolidation into one diversion dam and powerhouse to be financed and built by the private sector, an amended EIA was prepared which was based on the original EIA documents and submitted to the state environmental authorities for review and approval. The procedure for revising the EIA for the new project concept was developed in consultation with Fundação Estadual de Meio Ambiente (FEAM), the state environmental commission. The findings of the EIA were summarized in a non-technical environmental document (RIMA) that was then made available locally for public review and comment.
This is a category B project according to IFC''s environmental review procedure because environmental review shows that a limited number of specific impacts may result from this project which can be avoided or mitigated by adhering to generally recognized environmental performance standards, guidelines, or design criteria. However, as a hydropower project of moderate generating size, special attention has been given by IFC to the local public consultation and disclosure that occurred during preparation of the EIA/RIMA for this project. Following completion of the EIA in accordance with state requirements, a permit to install (i.e., construct) was issued on 10 April 1995 by the Minas Gerais state environmental authorities (FEAM and COPAM). IBAMA has reviewed and approved the project as part of the review of the license to construct, however, IBAMA will need to formally approve the removal of vegetation from the reservoir area before the license to operate will be issued.
Environmental issues associated with this project include: land use modification, erosion control, and effects on aquatic resources and water users. IFC’s Environment Division has reviewed the following environmental documents regarding the above project:
· August 1994 EIA for the project, prepared by Leme Engenharia;
· July 1995 Estudos Ambientais (Environmental Studies), prepared by Ecodinámica;
· March 1996 Gerenciamento e Implantação dos Programas Ambientais, prepared by Ecodinámica; and
· September 1996 Environmental Assessment update, prepared by Ecodinámica.
Staff from IFC’s Environment Division visited the project site in January 1996 and again in November 1996. The documents referenced above, site visits, and discussions with the project sponsors constitute the primary sources of information used by IFC in conducting its environmental review. The following is a summary of the findings of this environmental review.
The project area is located in a relatively narrow canyon; the river reach between diversion dam and powerhouse is relatively high gradient, consisting mostly of rapids. Fish resources in the project’s immediate zone of influence are negligible; the river''s name is from an indigenous language and reportedly means "fish-less." Sampling for fish in the project area shows only a small population consisting of seven species in three families. Data from the EIA indicate that one of the major reasons for the lack of fish is very poor conditions for food supply in the river, and natural barriers to migration and fish use in most of the tributaries. Historically high turbidity and poor water quality in the river is associated with a long and continuing history of mining in the upper watershed, long-standing conversion of steep slopes into agricultural use in the watershed, and the high susceptibility of the geological formations and soils in the watershed to erosion. The river’s water quality has also been adversely impacted by urban and industrial pollution sources in the upper watershed. In the upper watershed, mining has occurred since the colonial period, with very significant gold mining activity in the vicinity of Ouro Preto during the early colonial era. The project area, particularly in the area of the reservoir, still is frequently subjected to small-scale, unauthorized placer mining using diver-operated dredging equipment. The Rio Piracicaba watershed is considered one of the largest sources of sediment loading in the Rio Doce basin. Natural barriers to fish migration occur in most of the tributaries, and existing dams have been built both upstream (50 km) and downstream (10 km) of the project over 40 years ago. Therefore, the project will not have a significant adverse impact on fish resources or fish migrations.
Long term average flow in the river is 84.8 m³/sec at the project site, with monthly average peak flow during the rainy season at 570 m³/sec and monthly average minimum flow during the dry season at 19.6 m³/sec. Minimum flow discharge from the reservoir has been set by the state environmental authorities at 0.76 m3/sec. The minimum flow has been determined on the basis of a formula used by the state environmental authorities to calculate requirements to maintain habitat for fisheries in rivers in this region of the state. It does not reflect the existing poor quality habitat for fish in this particular river. About 1500 meters below the diversion, the first of three small tributaries begins to substantially augment the minimum flow regime in the dewatered stretch of river.
The Guilman Amorim hydropower project will be operated by CEMIG, the local electrical utility, as a peaking plant integrated into the national electrical grid. The sponsors are building the project under contract, with guarantees by CEMIG for power supply for their respective industrial operations. The arrangement with Guilman Amorim will provide power production during the hours of 5 PM to 8 PM, with a low level of generation (a minimum of about 24 MW during the dry season) during the remainder of the day. The Sá Carvalho hydropower project is an independent power producer located downstream of the project area, with its dam located just below the town of Antônio Dias, about 10 km below the Guilman Amorim powerhouse. The backwater of this reservoir extends almost to the Guilman Amorim powerhouse. The Sá Carvalho power project is connected to but not integrated into the national grid. The Sá Carvalho project, however, will also be operated under an agreement with CEMIG as a peaking plant with a moderate level of power generation throughout the day. Modeling indicates that the lag time in peaking operations between the two projects is 2 hours, which means that the peaking operations of the Sá Carvalho project will lag about 2 hours behind the Guilman Amorim project. Thus, the two projects will be coordinated in their operations through CEMIG. The operations of the two plants together will not significantly modify river flow regimes below the Sá Carvalho powerhouse to the confluence of Rio Piracicaba with Rio Doce. Thus, downstream resources and water users will not be affected by the peaking operations of the Guilman Amorim power project.
The project site is not located in an area of sensitive habitat or high biological diversity. Most of the vegetation in the project area is old eucalyptus plantation, established in the 1960s, with secondary forest remnants on steep slopes and patches of gallery forest along the river. One of the better stands of remaining forest is a 400 ha parcel extending from just a few hundred meters upstream of the dam site along the north bank (left bank) to the powerhouse site. This area is about 70% old eucalyptus plantation with a well-developed understory of native species, and 30% good quality secondary forest in native species on the steeper slopes. This parcel, averaging approximately 400 m in width and 9 km in length, has been set aside by the project sponsors as a habitat conservation area (Private Reserve of Natural Patrimony). Because of the topography, riparian vegetation (gallery forest) is very limited; much of the river bank is exposed rock surface. Studies indicate that species composition and plant communities at the existing river margin and the new reservoir elevation are very similar. Loss of habitat from the 1-km2 reservoir is minimal (about 6.5 ha total), and does not represent high quality or sensitive habitat. As a run-of-river operation, riparian vegetation will be re-established along the margins of the new waterline where soil conditions permit plant growth.
CVRD’s rail line between its iron mines near Belo Horizonte and its port at Vitoria runs along the south canyon wall (right bank) in the project area. Significant cut and fill occurred during construction, and extensive terracing and reinforcement of slopes for erosion control and slope stability has significantly modified the landscape and habitat on this side of the river since the railroad was built over 60 years ago. Old waste mounds of soil from the railroad construction are located along the river margins in the project area and have been subjected to erosion over the years. Waste rock from the tunnel construction for the hydropower project has been used to help stabilize the old deposits of soil and prevent further erosion.
The only land for the project that was not already owned by Belgo Mineira, i.e., that needed to be purchased for the project, was 207 ha located in the area of the reservoir. The boundaries of the land purchase were based on the calculated reservoir height with a 1-in-10,000 year rainfall. These 207 ha belonged to eight families in nine parcels, with one family owning two parcels (totaling 38 ha). This one family lived on one of the parcels, and needed to be relocated; all other landowners lived on other properties and did not require relocation. The land was purchased through direct negotiations between the separate owners and the company at a price averaging approximately three times market value. The family that needed to relocate used the proceeds of the sale to purchase a new farm and to build a better house elsewhere in the municipality, closer to the town of Nova Era. With the exception of the old hydropower plant, the only other land use has been the tree plantations, and maintenance access (service roads) for the CVRD railroad.
A 3.5-km transmission line will connect the project to an existing powerline. The connecting transmission line and the new substation is located in eucalyptus plantation lands owned by Belgo Mineira. Topography is such that only eucalyptus plantation on hilltops has been cleared for construction of transmission line pylons, as well as the substation.
Copies of the EIA/RIMA and the subsequent Environmental Control Plan were provided to the local mayors and political party leaders. A full year elapsed between the time of submission of these documents to local community leaders and issuance by the state environmental authorities of the license to construct. The local community leaders and the local Departments of Education and Public Health were major instruments for informal information sessions between the communities and the project sponsors. In addition, copies of the EIA/RIMA were provided to Federal University of Minas Gerais, which has a program that includes water quality studies and water quality improvements in the Rio Piracicaba basin. The University, following its review of the EIA/RIMA, requested access to water quality data collected for the EIA/RIMA in order to expand its data base. During review of the EIA/RIMA, public perception surveys were carried out in the nearest communities of Nova Era and Antônio Dias during March and April 1995.
Upon issuance of the license to construct, the sponsors launched a formal Community Communications Program with announcements of formal public meetings in local newspapers and the radio. Posters announcing formal meetings were also erected 7 days in advance at post offices, banks, stores, and rural schools in the two municipalities. The purpose of the Community Communications Program is to provide information to local communities and ongoing opportunities to comment on the project. At the first formal meetings, it was noted that a common issue in both communities was confusion regarding the recent policy changes in the power sector and whether local residents would be required to pay the project sponsor for power. With respect to environmental concerns, the project’s impact on floods was of common concern among Nova Era residents, and the poor water quality in the river was a common concern among residents of Antônio Dias. Videos about the project concept were also shown in open public meetings in the communities. Subsequent public meetings have been held in the communities in October 1995, and March and September 1996. Additional public information meetings are planned in associated with completion of construction and filling of the reservoir. A bi-monthly newsletter is also circulated among residents of the two municipalities.
An Environmental Management and Monitoring Program is also being implemented by the project sponsor. One of the key components of the Environmental Management and Monitoring Program is determining the impacts of the project on river water quality, particularly in the dewatered stretch just below the dam. There is also interest in the impacts of the project on water quality in the Antônio Dias reservoir, which is the water supply for the town of Antônio Dias. The high aeration of the river provided by the falls and cascades between the Guilman Amorim dam and powerhouse may have provided a low level of treatment which helped to slightly reduce BOD levels in the river water. It is expected that a significant change in water quality will not be detected at Antônio Dias. Public health surveys of the existing reservoirs in the project area do not detect the presence of snails that are potential vectors for flukes and other parasites of public health concern. Public health and water quality are key components of the long-term environmental monitoring program.
Based on its environmental review, IFC’s Environment Division concludes that this project is in compliance with local environmental requirements and consistent with applicable World Bank environmental policies. Staff from IFC’s Environment Division will monitor erosion control measures and other environmental management practices during the construction period. The sponsor will be required to submit an annual monitoring report to IFC regarding implementation and findings of its Environmental Management and Monitoring Program.
brazil\guilman.ers
P:\CTEEU\GUILMAN.ERS
December 11, 1996 1:44 PM
International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)
Project Name Brazil-Guilman Amorim Hydropower
Region Latin America
Sector Power
Project No. 007906
This project involves construction and operation of a 140-MW run-of-river hydropower project on Rio Piracicaba in Minas Gerais State. The Guilman Amorim hydropower project is located on the Rio Piracicaba between the towns of New Era and Antônio Dias, about 170 km east of Belo Horizonte. The project consists of a 147-m long, 35-m high concrete diversion dam forming a 1-km2 reservoir at maximum and 0.75 km2 at minimum level. A 5.7 km tunnel will carry the diverted water to a powerhouse located 8 km downstream on the Rio Piracicaba. Because of the topography, the backwater of the reservoir is expected to reach approximately 8 km upstream from the diversion dam. The project area is the site of the 2 MW Amorim I hydropower project, built in the 1950s but now inoperational because of damage to the powerhouse. The old dam, which still exists, is located between the new dam site and the new powerhouse site. In addition to this existing dam at the project site, additional hydropower projects, also dating from mid-century, are located a few kilometers upstream and downstream of the project site. The river, therefore, has been modified by hydropower projects for over 40 years.
Initially, two separate power projects were planned for this project area by the public power authorities, and separate Environmental Impact Assessments (EIAs) for the two projects were prepared in 1991/1992 in accordance with local environmental requirements. With subsequent changes in project design and consolidation into one diversion dam and powerhouse to be financed and built by the private sector, an amended EIA was prepared which was based on the original EIA documents and submitted to the state environmental authorities for review and approval. The procedure for revising the EIA for the new project concept was developed in consultation with Fundação Estadual de Meio Ambiente (FEAM), the state environmental commission. The findings of the EIA were summarized in a non-technical environmental document (RIMA) that was then made available locally for public review and comment.
This is a category B project according to IFC''s environmental review procedure because environmental review shows that a limited number of specific impacts may result from this project which can be avoided or mitigated by adhering to generally recognized environmental performance standards, guidelines, or design criteria. However, as a hydropower project of moderate generating size, special attention has been given by IFC to the local public consultation and disclosure that occurred during preparation of the EIA/RIMA for this project. Following completion of the EIA in accordance with state requirements, a permit to install (i.e., construct) was issued on 10 April 1995 by the Minas Gerais state environmental authorities (FEAM and COPAM). IBAMA has reviewed and approved the project as part of the review of the license to construct, however, IBAMA will need to formally approve the removal of vegetation from the reservoir area before the license to operate will be issued.
Environmental issues associated with this project include: land use modification, erosion control, and effects on aquatic resources and water users. IFC’s Environment Division has reviewed the following environmental documents regarding the above project:
· August 1994 EIA for the project, prepared by Leme Engenharia;
· July 1995 Estudos Ambientais (Environmental Studies), prepared by Ecodinámica;
· March 1996 Gerenciamento e Implantação dos Programas Ambientais, prepared by Ecodinámica; and
· September 1996 Environmental Assessment update, prepared by Ecodinámica.
Staff from IFC’s Environment Division visited the project site in January 1996 and again in November 1996. The documents referenced above, site visits, and discussions with the project sponsors constitute the primary sources of information used by IFC in conducting its environmental review. The following is a summary of the findings of this environmental review.
The project area is located in a relatively narrow canyon; the river reach between diversion dam and powerhouse is relatively high gradient, consisting mostly of rapids. Fish resources in the project’s immediate zone of influence are negligible; the river''s name is from an indigenous language and reportedly means "fish-less." Sampling for fish in the project area shows only a small population consisting of seven species in three families. Data from the EIA indicate that one of the major reasons for the lack of fish is very poor conditions for food supply in the river, and natural barriers to migration and fish use in most of the tributaries. Historically high turbidity and poor water quality in the river is associated with a long and continuing history of mining in the upper watershed, long-standing conversion of steep slopes into agricultural use in the watershed, and the high susceptibility of the geological formations and soils in the watershed to erosion. The river’s water quality has also been adversely impacted by urban and industrial pollution sources in the upper watershed. In the upper watershed, mining has occurred since the colonial period, with very significant gold mining activity in the vicinity of Ouro Preto during the early colonial era. The project area, particularly in the area of the reservoir, still is frequently subjected to small-scale, unauthorized placer mining using diver-operated dredging equipment. The Rio Piracicaba watershed is considered one of the largest sources of sediment loading in the Rio Doce basin. Natural barriers to fish migration occur in most of the tributaries, and existing dams have been built both upstream (50 km) and downstream (10 km) of the project over 40 years ago. Therefore, the project will not have a significant adverse impact on fish resources or fish migrations.
Long term average flow in the river is 84.8 m³/sec at the project site, with monthly average peak flow during the rainy season at 570 m³/sec and monthly average minimum flow during the dry season at 19.6 m³/sec. Minimum flow discharge from the reservoir has been set by the state environmental authorities at 0.76 m3/sec. The minimum flow has been determined on the basis of a formula used by the state environmental authorities to calculate requirements to maintain habitat for fisheries in rivers in this region of the state. It does not reflect the existing poor quality habitat for fish in this particular river. About 1500 meters below the diversion, the first of three small tributaries begins to substantially augment the minimum flow regime in the dewatered stretch of river.
The Guilman Amorim hydropower project will be operated by CEMIG, the local electrical utility, as a peaking plant integrated into the national electrical grid. The sponsors are building the project under contract, with guarantees by CEMIG for power supply for their respective industrial operations. The arrangement with Guilman Amorim will provide power production during the hours of 5 PM to 8 PM, with a low level of generation (a minimum of about 24 MW during the dry season) during the remainder of the day. The Sá Carvalho hydropower project is an independent power producer located downstream of the project area, with its dam located just below the town of Antônio Dias, about 10 km below the Guilman Amorim powerhouse. The backwater of this reservoir extends almost to the Guilman Amorim powerhouse. The Sá Carvalho power project is connected to but not integrated into the national grid. The Sá Carvalho project, however, will also be operated under an agreement with CEMIG as a peaking plant with a moderate level of power generation throughout the day. Modeling indicates that the lag time in peaking operations between the two projects is 2 hours, which means that the peaking operations of the Sá Carvalho project will lag about 2 hours behind the Guilman Amorim project. Thus, the two projects will be coordinated in their operations through CEMIG. The operations of the two plants together will not significantly modify river flow regimes below the Sá Carvalho powerhouse to the confluence of Rio Piracicaba with Rio Doce. Thus, downstream resources and water users will not be affected by the peaking operations of the Guilman Amorim power project.
The project site is not located in an area of sensitive habitat or high biological diversity. Most of the vegetation in the project area is old eucalyptus plantation, established in the 1960s, with secondary forest remnants on steep slopes and patches of gallery forest along the river. One of the better stands of remaining forest is a 400 ha parcel extending from just a few hundred meters upstream of the dam site along the north bank (left bank) to the powerhouse site. This area is about 70% old eucalyptus plantation with a well-developed understory of native species, and 30% good quality secondary forest in native species on the steeper slopes. This parcel, averaging approximately 400 m in width and 9 km in length, has been set aside by the project sponsors as a habitat conservation area (Private Reserve of Natural Patrimony). Because of the topography, riparian vegetation (gallery forest) is very limited; much of the river bank is exposed rock surface. Studies indicate that species composition and plant communities at the existing river margin and the new reservoir elevation are very similar. Loss of habitat from the 1-km2 reservoir is minimal (about 6.5 ha total), and does not represent high quality or sensitive habitat. As a run-of-river operation, riparian vegetation will be re-established along the margins of the new waterline where soil conditions permit plant growth.
CVRD’s rail line between its iron mines near Belo Horizonte and its port at Vitoria runs along the south canyon wall (right bank) in the project area. Significant cut and fill occurred during construction, and extensive terracing and reinforcement of slopes for erosion control and slope stability has significantly modified the landscape and habitat on this side of the river since the railroad was built over 60 years ago. Old waste mounds of soil from the railroad construction are located along the river margins in the project area and have been subjected to erosion over the years. Waste rock from the tunnel construction for the hydropower project has been used to help stabilize the old deposits of soil and prevent further erosion.
The only land for the project that was not already owned by Belgo Mineira, i.e., that needed to be purchased for the project, was 207 ha located in the area of the reservoir. The boundaries of the land purchase were based on the calculated reservoir height with a 1-in-10,000 year rainfall. These 207 ha belonged to eight families in nine parcels, with one family owning two parcels (totaling 38 ha). This one family lived on one of the parcels, and needed to be relocated; all other landowners lived on other properties and did not require relocation. The land was purchased through direct negotiations between the separate owners and the company at a price averaging approximately three times market value. The family that needed to relocate used the proceeds of the sale to purchase a new farm and to build a better house elsewhere in the municipality, closer to the town of Nova Era. With the exception of the old hydropower plant, the only other land use has been the tree plantations, and maintenance access (service roads) for the CVRD railroad.
A 3.5-km transmission line will connect the project to an existing powerline. The connecting transmission line and the new substation is located in eucalyptus plantation lands owned by Belgo Mineira. Topography is such that only eucalyptus plantation on hilltops has been cleared for construction of transmission line pylons, as well as the substation.
Copies of the EIA/RIMA and the subsequent Environmental Control Plan were provided to the local mayors and political party leaders. A full year elapsed between the time of submission of these documents to local community leaders and issuance by the state environmental authorities of the license to construct. The local community leaders and the local Departments of Education and Public Health were major instruments for informal information sessions between the communities and the project sponsors. In addition, copies of the EIA/RIMA were provided to Federal University of Minas Gerais, which has a program that includes water quality studies and water quality improvements in the Rio Piracicaba basin. The University, following its review of the EIA/RIMA, requested access to water quality data collected for the EIA/RIMA in order to expand its data base. During review of the EIA/RIMA, public perception surveys were carried out in the nearest communities of Nova Era and Antônio Dias during March and April 1995.
Upon issuance of the license to construct, the sponsors launched a formal Community Communications Program with announcements of formal public meetings in local newspapers and the radio. Posters announcing formal meetings were also erected 7 days in advance at post offices, banks, stores, and rural schools in the two municipalities. The purpose of the Community Communications Program is to provide information to local communities and ongoing opportunities to comment on the project. At the first formal meetings, it was noted that a common issue in both communities was confusion regarding the recent policy changes in the power sector and whether local residents would be required to pay the project sponsor for power. With respect to environmental concerns, the project’s impact on floods was of common concern among Nova Era residents, and the poor water quality in the river was a common concern among residents of Antônio Dias. Videos about the project concept were also shown in open public meetings in the communities. Subsequent public meetings have been held in the communities in October 1995, and March and September 1996. Additional public information meetings are planned in associated with completion of construction and filling of the reservoir. A bi-monthly newsletter is also circulated among residents of the two municipalities.
An Environmental Management and Monitoring Program is also being implemented by the project sponsor. One of the key components of the Environmental Management and Monitoring Program is determining the impacts of the project on river water quality, particularly in the dewatered stretch just below the dam. There is also interest in the impacts of the project on water quality in the Antônio Dias reservoir, which is the water supply for the town of Antônio Dias. The high aeration of the river provided by the falls and cascades between the Guilman Amorim dam and powerhouse may have provided a low level of treatment which helped to slightly reduce BOD levels in the river water. It is expected that a significant change in water quality will not be detected at Antônio Dias. Public health surveys of the existing reservoirs in the project area do not detect the presence of snails that are potential vectors for flukes and other parasites of public health concern. Public health and water quality are key components of the long-term environmental monitoring program.
Based on its environmental review, IFC’s Environment Division concludes that this project is in compliance with local environmental requirements and consistent with applicable World Bank environmental policies. Staff from IFC’s Environment Division will monitor erosion control measures and other environmental management practices during the construction period. The sponsor will be required to submit an annual monitoring report to IFC regarding implementation and findings of its Environmental Management and Monitoring Program.
brazil\guilman.ers
P:\CTEEU\GUILMAN.ERS
December 11, 1996 1:44 PM
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
