Project Name Mexico-Punta Langosta Cruise Ship Terminal

Region Latin America & Caribbean

Sector Infrastructure

Project No. 008383

1. The project involves the construction and operation of a cruise ship terminal adjacent to downtown Cozumel. The terminal will be constructed adjacent to San Miguel, the only city in Cozumel where the commercial infrastructure of the island is located, and will consist of an L-shaped dock and a passenger land terminal. The dock will have two docking positions: one for third generation cruise ships (42,000 tons, 180 meters) carrying up to 750 passengers and one for fourth generation cruise ships (75,000 tons, 300 meters) carrying up to 2,200 passengers.

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. The following potential environmental, health and safety impacts of the project were analyzed:

· air emissions;
· liquid effluents;
· spill prevention;
· solid waste;
· protection of coastal resources;
· general employee safety;
· fire prevention and emergency response; and
· employee exposure to noise and hazardous materials.

3. The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.

4. The project site is located in the western part of the island. It is surrounded by residential and commercial areas to the north and by a fuel terminal to the south. There are some homes and unoccupied lots to the east and a main road to the west. The project has a land and a marine components. The surface areas for the land and marine structures are 25,000 m2 and 7,500 m2 respectively. Dredging will not be required and neither the port nor its area of influence will affect any coral formations. Neither land acquisition nor relocation of families will occur as part of the project.

5. The sponsor will implement an environmental management plan during construction to ensure that air emissions, liquid effluents, solid residues, and noise are properly controlled and handled and employee health and safety measures are implemented. Vehicles carrying construction materials will be covered and the materials and roads will be wetted to avoid dispersion of dust. The construction vehicles and heavy machinery will be properly maintained and will have mufflers to reduce noise. The liquid effluents will be discharged in septic tanks. Solid residues will be collected by the sponsor and will be finally disposed by the local authorities. The working areas will be equipped with baths. Commercially bottled drinking water will be available for employee use.

6. During the construction phase of the marine structure, the sponsor will implement controls to avoid that resuspended sediments be carried by the marine currents towards the coral reef area. Sheet piling will be used for the marine construction and the working area will be surrounded by a geotextile screen to contain the suspended solid generated during the construction operations. In addition, biodegradable and non-toxic construction materials will be use in the marine structure. Monthly water monitoring samples will be taken during the construction phase to determine whether additional mitigation actions are needed to avoid affecting the characteristics of the marine waters. The initial reconnaissance visits to the ocean bottom, performed by the sponsor, showed significant accumulation of debris from past coastal activities. These debris will be removed as part of the construction phase and will be disposed following local authorities guidelines.

7. The sponsor is considering options to minimally affect the sunken vessel found in the area of influence since this vessel has become substratum for aquatic flora and fauna in the area. The sponsor will inform IFC about the specific actions to be taken prior to their implementation.

8. The combustibles to be used during construction will be stored in double containment tanks to avoid soil or marine contamination in case of accidental spills. The filling of the tanks for heavy equipment, during construction, will be performed in a manner that will significantly reduce the risk of any spill to the ocean.

9. The sponsor will reforest project site areas potentially affected by erosion to ensure habitat maintenance. In coordination with the municipality, the sponsor will implement a solid residues handling program for the operation phase. The sponsor will built a pedestrian passway to avoid the direct crossing of a main intersection.

10. The potable water needed for the operation of the terminal will be supplied from the municipal water supply. The sponsor will inform IFC of any change in water requirements should the sponsor decide to sell potable water to the arriving ships. In such case, the sponsor will indicate the water sources and the water treatment types to be used if deemed necessary. Domestic sewage will be discharged to the municipal system and the solid waste will be finally disposed by the local authorities. No burning of vegetal material will take place.

11. No ships wastes or domestic sewage will be handled by the sponsor. The sponsor will inform IFC, if at a later date, Punta Langosta Terminal decides to dispose solid residues from the ships. Not machinery or vessels fuel dispensing nor maintenance will be conducted at the terminal. Punta Langosta Marine Terminal is committed to operating the terminal in accordance with international and governmental regulations for port operations and protection of the environment.

12. Fire prevention equipment will be installed at the terminal and fire prevention operating and housekeeping practices will be implemented in addition to the stringent fire prevention measures the docked ships already have. Fire protection will be provided by a pressure system with hydrants located throughout the terminal, together with fire extinguishers at key locations. A well trained fire brigade will be readily available. The sponsor has prepared an emergency response plan and its implementation includes coordination with the community and port authority. The sponsor has prepared a hurricane contingency plan since the area of influence of the projects is part of the hurricane trajectory for the period June-November.

13. The sponsor will have a strict training program in place. Employees will be trained in accident prevention, in the proper safety procedures for terminal operations and in how best to respond to earthquakes, hurricanes, flood, and fire. The facilities will have all necessary equipment to respond to any of these events. Personnel protective equipment will be provided to employees potentially exposed to dust and hazardous materials.

14. Public consultation was conducted and the sponsor held several meetings and made a presentation of the project to local citizens, authorities and community organizations in the project area. In addition, the sponsor placed advertisements on radio and in local newspapers about the project developments. It is clear that due to the economic opportunities the project will create, local communities are in favor of the project. The sponsor will maintain close contact with the relevant local communities throughout the life of the project.

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

16. IFC will monitor Punta Langosta Marine Terminal’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating the environmental performance reports submitted annually (coinciding with the anniversary of the signing of the investment agreement) to IFC by the sponsor and by conducting periodic site reviews during project supervision.