Environmental & Social Review Summary
Project Number
8588
Company Name
CORREO OFICIAL DE LA REPUBLICA ARGENTINA S.A.
Date ESRS Disclosed
Feb 5, 2010
Country
Argentina
Region
Latin America and the Caribbean
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jan 7, 1999
Signed : May 26, 1999
Invested : Jul 12, 1999
Sector
Other Support Activities for Transportation (Grain Terminals, Cargo Terminals, Airport Operations)
Industry
Infrastructure
Department
Regional Industry INF LAC & EUR
Project Description
Environmental Review Summary (ERS)
Project Name ARGENTINA: CORREO ARGENTINO
Region Latin America and Caribbean
Sector Infrastructure
Project No. 008588 November 17, 1998
1. The deregulation of the Argentine postal sector in 1993 was followed by subsequent decrees transforming the Argentine postal services to a corporate entity in order to increase competence, improve efficiency and reduce costs. Acknowledging the need to further improve efficiency and reduce high operation costs, in 1997 the Government of Argentina (GOA) decided to grant the concession for the operation of the Argentine official mail to the private sector. The Concession was awarded by the GOA to the consortium Correo Argentino S.A. (CASA) composed of Itron S.A., Sideco Americana S.A., Banco de Galicia y Buenos Aires S.A., and the employees of Correo, for 30 years, starting on September 1, 1997, to operate the official postal services in Argentina.
2. The concession of the official postal services comprises all the monetary and telegraphic postal services rendered by Empresa Nacional de Correos y Telegrafos S.A. (Encotesa) until the date of the Concession. These services include the obligation to render Universal Basic Postal services (mail, telegrams, and drafts) and other related services. CASA plans to improve regular postal services and introduce new products and services such as direct mail and financial products.
3. At concession CASA took responsibility for operating 1,315 post offices and 5,604 postal franchises within Argentina. The main post office in Buenos Aires, the Correo Central Palace building, has a built area of over 80,000 m2 with eight floors and two basements. This and several other buildings have been declared Historic Patrimony. Movement of mail is by truck and air, and third parties perform the transportation services.
4. CASA ''s four year investment program includes construction of a new mail sorting plant near Buenos Aires’ international airport in the town of Monte Grande, installation of new mail processing equipment, improvement of deficiencies in existing buildings based on a post-concession independent audit, general restoration of premises and equipment, improvements in computer and information systems, implementation of staff efficiency program and training of workers, improvements in the health, hygiene and safety program, and a voluntary retirement program.
5. 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 Technical and Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:
· implementation of an environmental management program that encompasses facilities management and employee training and health and safety programs; and
· labor issues related to the voluntary retirement program.
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.
6. CASA has established a formal health, safety and environmental affairs department that is headed by a medical doctor based at the company’s headquarters. Three specialists located in regional offices and one in Buenos Aires, each of whom have four technical staffers, form the basis of the group. This staff implement the company’s environmental, training, and health and safety programs in each of the operating regions.
7. The new 18,000 m2 mail sorting plant in Monte Grande will be located in a vacant parcel in an industrial zone. This site is well served by a dual carriage highway, which will minimize traffic impacts from mail trucks. To be completed in mid-1999, the new construction will meet all local requirements for sanitary systems, electric, fire protection and environmental protection.
8. Operating premises received by CASA as part of the concession include modern structures in good condition as well as facilities that have been used for more than half a century. An independent audit commissioned by CASA during the first three months of the concession established the liabilities to be assumed by the former operator, work priorities, schedules and amount of investment. Potential liabilities from asbestos and PCBs were not found during the audit. Inactive underground fuel storage tanks found in some buildings will be either removed or decommissioned in place, and active tanks will be fitted with secondary containment (if not already so equipped). Most of the buildings transferred to CASA are connected to public sewerage systems, although about 25% are not. These buildings will be connected or fitted with septic tank systems by no later than mid-1999.
9. CASA will undertake a general restoration of its premises and equipment necessary due to previous lack of maintenance and investment. Building modifications and repairs will include such items as roofs, elevators, walls, water tanks, sewerage piping, and painting. Equipment upgrades will include modern containers for postal transportation, new measuring machines, and new vehicles to be used in supervising operations.
10. Several of the buildings transferred to CASA are considered Historic Patrimony, and prior authorization of the competent authorities is required to modify the property. CASA will manage those facilities in accordance with government requirements and with due regard for their historic character.
11. Implementation of a staff efficiency program and worker training will be a major element of the initial investment plan. Workers will receive training to improve their abilities and tasks when performing operations in CASA. CASA will develop training that will include workshops on CASA''s products and services, competitiveness and efficiency, customer services and training in time quality management, quality control, and computers and systems.
12. The company has upgraded the existing health, hygiene and safety plan, aiming to improve the health and safety conditions of employees, pursuant to Argentine legislation. At concession, certain premises and equipment did not reach the minimum required standards, Level II, established by Argentine law. CASA will undertake the following measures: control and provision of fire protection elements; personal protection elements; sanitary installations; first aid equipment; electric devices for distribution and protection; adequate changing rooms and restaurants within 24 months from the date of the concession. CASA will also implement additional measures as part of the investment program to meet Level III requirements, and reach full compliance by the end of 1999.
13. The number of employees in CASA at turnover was greater than required for efficient operation. CASA initiated a voluntary retirement program that is being implemented according to the federal legislation and to the laws governing collective bargaining agreements. An optional training program for the employees who decided to take the retirement is implemented at local educational facilities by a group of contracted specialized counselors.
14. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Argentina requirements, and World Bank policies, and environmental, health and safety guidelines.
15. IFC will monitor CASA’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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November 17, 1998 11:41 AM
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
