Environmental & Social Review Summary
Project Number
8738
Company Name
Aguas De Illimani S.A.
Date ESRS Disclosed
Feb 5, 2010
Country
Bolivia
Region
Latin America and the Caribbean
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Dec 28, 1998
Signed : Nov 23, 1999
Invested : Sep 29, 2000
Sector
Water and Wastewater Utilities
Industry
Infrastructure
Department
Regional Industry INF LAC & EUR
Project Description
- 4 - August 31st 1998
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 BOLIVIA: Aguas del Illimani S.A.
Region Latin America and Caribbean
Sector Transportation and Utilities
Project No. 008738
1. In Bolivia, it is estimated that approximately 900,000 urban residents do not have access to centrally distributed water; over 2.3 million urban residents do not have access to sewerage facilities and water–borne diseases are the most common cause of child mortality. Rapid urban growth in the cities of La Paz and El Alto, caused primarily by rural-urban migration, has overloaded existing infrastructure and created public health risks. Following an international bidding process, the Government of Bolivia successfully awarded a 30-year concession for the provision of potable water and sewerage services in the cities of La Paz and El Alto to a consortium led by Suez-Lyonnaise des Eaux on June 26, 1997. This consortium was subsequently incorporated as Aguas del Illimani (ADI). This project comprises the financing of ADI’s first five-year capital expenditure plan covering the period between 1997-2001.
2. Expenditure during this first 5 year period is designed:- to provide 100% water distribution coverage in the La Paz systems (Achachicala and Pampahasi) and almost 100% coverage in the El Alto systems (El Alto and Tilata) through the installation of a minimum of 78,252 water connections, of which 71,752 will be located in the El Alto area; install 38,000 sewerage connections of which 27,000 will be located in the El Alto area; complete the construction of a 1.5 m3 /s wastewater treatment plant (the Puchuckollo sewage treatment plant) in El Alto, and allow for an increase in the water sourcing capacity.
3. This is a category B project according to IFC’s environmental review procedure because impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Environmental issues associated with this project include:
· water resource conservation;
· groundwater management;
· water quality impacts; disposal of water treatment sludge;
· soil and water contamination and odor control; and
· health and safety issues specifically worker safety and training and occupational health.
4. The sponsor has provided information about how these potential impacts will be addressed, and demonstrated that the proposed project will comply with applicable local regulations and World Bank Policies and Guidelines. This information, which is summarized in the paragraphs that follow, will be complemented by a Corrective Action Plan which will be completed by ADI prior to first disbursement under the proposed loan.
5. ADI sources its raw water from 5 reservoirs known as Tuni, Hampaturi (with an additional upstream reservoir called Ajuankhota), Milluni, Incachaca, and an underground aquifer, Tilata. These reservoirs and their associated small dams are located between 4,200 – 4,700 m above sea level (asl) and currently supply 87% of the surface water intake. All dams are located at high altitudes away from populated areas in areas with very scarce vegetation. The remaining 13% of water supply is satisfied by groundwater in the El Alto region (30 wells of about 90-105 m in depth). In this area, the two superficial aquifers are known to be contaminated and have not been used as a water source by ADI; the third level aquifer is being exploited in order to ensure that the water is of acceptable quality. At present, the Tilata wells are estimated to have a combined maximum production capacity of 347 l/s; their current production is estimated at 49 l/s. The sponsor will implement a long-term groundwater monitoring program to monitor and effect a controlled exploitation of this aquifer source.
6. Meeting the long-term goals of the Concession will require the construction of additional reservoirs of varying capacity during its life. The construction of reservoirs during the first 5 year period will be restricted to two sites adjacent to existing reservoirs to minimize environmental impact. The sponsor will also submit plans for construction supervision and quality assurance, instrumentation, operation and maintenance as well as emergency preparedness if any of the new dams is above a height limit of 15 meters, in compliance with the World Bank Safeguard Policy OP 4.37. Advice from an independent environmental advisory panel may also be required. The sponsor will address the active management of the watershed which will ensure a high quality for future water resources.
7. Sourced water is currently transported through canals and mains to 4 separate subsystems for the treatment and distribution of water to the local metropolitan areas: Achachicala, Pampahasi, El Alto and Tilata. The majority of the network distribution system was built in the 1970’s. The first two systems are primarily dedicated to serving the La Paz area; the remaining two systems are primarily dedicated to the El Alto area.
8. Achachicala System:- This system’s water treatment plant was initially built in 1935 and expanded in 1971. Treatment consists of presedimentation, flocculation, sedimentation, filtration and chlorination plus magnesium and iron removal by superficial aeration. Pampahasi System:- This system’s water treatment plant was built in 1971, expanded in 1979 and again in 1994. Treatment consists of flocculation, filtration and chlorination. El Alto System:- This system’s water treatment plant was built in 1979 and provides water to the El Alto region. Treatment for source water consists of aeration, flocculation, filtration and chlorination. The sponsor will implement fire protection measures in all of the chlorine storage areas for the Achachicala, Pampahasi and El Alto treatment plants. Tilata System:- The water treatment plant for this system was built in 1990, and mainly provides pumping and chlorination to underground water sources. This plant exhibits good housekeeping and has a fire safety system.
9. Present raw water quality historic data is limited. Water for the Pampahasi and Tilata Systems is good based on its chemistry. For El Alto, the water source is high in iron and is corrosive thus posing a potential for pipe corrosion. The Achachicala system shows higher levels of conductivity, color, suspended solids, hardness and turbidity. However, treated water quality from all the plants meet Concession standards which are less stringent than US EPA standards but comparable to WHO Standards. For certain parameters, the Concession requires adherence to stricter treatment removal levels than WHO standards. For liquid effluents, the limits set by the Concession are in agreement with the World Bank guidelines with the exception of the following parameters:- total suspended solids, oil and grease, temperature and coliforms. The sponsor has accepted that the project will meet applicable World Bank Guidelines.
10. ADI has two separate sewerage systems currently in operation in La Paz and El Alto, which are also organized according to its water distribution systems. The sewage collection networks are most developed in the Pampahasi and El Alto systems. At present, ADI does not provide treatment to collected sewage, nor does it treat the sludge generated from its water treatment plants prior to disposal in the Choqueyapu and Rio Seco rivers, as well as other minor streams. ADI is currently evaluating options to treat these sludges and consider ultimate disposal to local landfill.
11. In La Paz, the first 5 year period of the Concession does not contemplate wastewater treatment. However, as part of its Concession obligations, ADI is required to complete the preparation of a Sanitation Master Plan before the end of 2001, presenting options to address collection and treatment of wastewaters currently discharged to the Choqueyapu River. These alternatives, together with the reflections of their costs in tariffs, will be presented to the Water Superintendency for approval at that time. As a pre-cursor to the development of such a plan, ADI is already working on the development of an industrial discharges registry and has initiated dialogue with the same industries with the aim of introducing pre-treatment of discharges, currently being released into the sewage system.
12. In El Alto, the Concession requires ADI to treat sewage at the Puchuckollo plant prior to discharge. Construction activities for this plant commenced under the previous municipal utility SAMAPA in 1997. The plant is anticipated to be in operation by December 1998. The Puchuckollo plant will operate through 4 process trains and stabilization lagoons (two anaerobic, two facultative and one polishing lagoon) covering a total surface area of 127 ha and have a total treatment capacity of 1.5m3 /s when all of its modules are operational. The treated effluent will comply with World Bank Guidelines and will be discharged into the nearby Rio Seco River.
13. ADI contracted a technical audit of the facilities which reported “all systems to be in good working condition, structures show no signs of major deficiencies, the equipment is in good working order and maintenance in being carried out. However, equipment at some of the facilities is old, and there is a chance of breakdown.” The technical audit also indicated that the treatment plants needed upgrading to improve dosification and monitoring of chemical additives. In addition, ADI contracted an environmental audit in accordance with IFC requirements. The environmental audit evaluated the environmental impact of the constituent parts of the water supply and treatment systems and identified practical solutions and monitoring programs, which can be implemented within a specific timeframe.
14. The actions identified as a result of the environmental audit are being incorporated by ADI into a Corrective Action Plan which will list the priorities to be carried out within the first years, as well as all environmental improvements to be initiated within the first 5 year period of the Concession. As part of the CAP, ADI will also provide IFC with details of future land acquisition, copies of Environmental Impact Statements prepared for any Category A capital investment projects, and comply with applicable World Bank policies and guidelines for the implementation of the project. It is expected that the CAP will include the need to perform technical studies to provide water treatment plant sludge treatment and disposal alternatives as well as evaluate the level of contaminants found within the filter bed medium and options for disposal. Finally, the CAP will include the development of an Environmental Health and Safety Master Plan, including training of ADI staff, improved health and safety monitoring, and the completion of additional studies to address such issues as fire safety.
13. ADI has established an environmental unit which will begin to address the issues identified in the environmental audit and ultimately reflected in the CAP, as well as the development of environmental management systems across the spectrum of project management and construction activities.
14. With respect to the local regulatory framework, Bolivian environmental legislation is fairly new and enforcement has only recently been initiated. New construction projects will be required to receive an appropriate environmental license from the La Paz prefecture. Depending upon the project category, ADI will need to prepare an Environmental Impact Statement in order to receive this environmental license. ADI will also need to prepare an Environmental Manifest for their existing operations in order to receive the requisite environmental license.
15. A reduction of personnel was carried out at the time of the handover of operations to ADI on August 1, 1997. At the time, SAMAPA’s labor force numbered 639 employees, a figure well in excess of operating requirements. ADI offered early retirement incentives to eligible employees which have been accepted by about 133 individuals since the beginning of operations. These incentives, according to the Bolivian law “Ley General del Trabajo”, offered compensation of one month’s salary per year of service, plus one additional month’s salary for each 5 year period previously worked at SAMAPA. A pro-rata portion of the year end bonus (equivalent to one month’s salary) was also paid depending on length of service. The voluntary early retirement process was well managed, and according to the Company did not face opposition from either existing employees or the general public.
16. IFC will monitor ongoing project compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by ADI and by conducting periodic supervision. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that following the implementation of the Corrective Action Plan, ADI’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.
L:\wpeu\Mainstream Projects\Bolivia\ADI-8738\ERS.doc
August 31, 1998 3:45 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 BOLIVIA: Aguas del Illimani S.A.
Region Latin America and Caribbean
Sector Transportation and Utilities
Project No. 008738
1. In Bolivia, it is estimated that approximately 900,000 urban residents do not have access to centrally distributed water; over 2.3 million urban residents do not have access to sewerage facilities and water–borne diseases are the most common cause of child mortality. Rapid urban growth in the cities of La Paz and El Alto, caused primarily by rural-urban migration, has overloaded existing infrastructure and created public health risks. Following an international bidding process, the Government of Bolivia successfully awarded a 30-year concession for the provision of potable water and sewerage services in the cities of La Paz and El Alto to a consortium led by Suez-Lyonnaise des Eaux on June 26, 1997. This consortium was subsequently incorporated as Aguas del Illimani (ADI). This project comprises the financing of ADI’s first five-year capital expenditure plan covering the period between 1997-2001.
2. Expenditure during this first 5 year period is designed:- to provide 100% water distribution coverage in the La Paz systems (Achachicala and Pampahasi) and almost 100% coverage in the El Alto systems (El Alto and Tilata) through the installation of a minimum of 78,252 water connections, of which 71,752 will be located in the El Alto area; install 38,000 sewerage connections of which 27,000 will be located in the El Alto area; complete the construction of a 1.5 m3 /s wastewater treatment plant (the Puchuckollo sewage treatment plant) in El Alto, and allow for an increase in the water sourcing capacity.
3. This is a category B project according to IFC’s environmental review procedure because impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Environmental issues associated with this project include:
· water resource conservation;
· groundwater management;
· water quality impacts; disposal of water treatment sludge;
· soil and water contamination and odor control; and
· health and safety issues specifically worker safety and training and occupational health.
4. The sponsor has provided information about how these potential impacts will be addressed, and demonstrated that the proposed project will comply with applicable local regulations and World Bank Policies and Guidelines. This information, which is summarized in the paragraphs that follow, will be complemented by a Corrective Action Plan which will be completed by ADI prior to first disbursement under the proposed loan.
5. ADI sources its raw water from 5 reservoirs known as Tuni, Hampaturi (with an additional upstream reservoir called Ajuankhota), Milluni, Incachaca, and an underground aquifer, Tilata. These reservoirs and their associated small dams are located between 4,200 – 4,700 m above sea level (asl) and currently supply 87% of the surface water intake. All dams are located at high altitudes away from populated areas in areas with very scarce vegetation. The remaining 13% of water supply is satisfied by groundwater in the El Alto region (30 wells of about 90-105 m in depth). In this area, the two superficial aquifers are known to be contaminated and have not been used as a water source by ADI; the third level aquifer is being exploited in order to ensure that the water is of acceptable quality. At present, the Tilata wells are estimated to have a combined maximum production capacity of 347 l/s; their current production is estimated at 49 l/s. The sponsor will implement a long-term groundwater monitoring program to monitor and effect a controlled exploitation of this aquifer source.
6. Meeting the long-term goals of the Concession will require the construction of additional reservoirs of varying capacity during its life. The construction of reservoirs during the first 5 year period will be restricted to two sites adjacent to existing reservoirs to minimize environmental impact. The sponsor will also submit plans for construction supervision and quality assurance, instrumentation, operation and maintenance as well as emergency preparedness if any of the new dams is above a height limit of 15 meters, in compliance with the World Bank Safeguard Policy OP 4.37. Advice from an independent environmental advisory panel may also be required. The sponsor will address the active management of the watershed which will ensure a high quality for future water resources.
7. Sourced water is currently transported through canals and mains to 4 separate subsystems for the treatment and distribution of water to the local metropolitan areas: Achachicala, Pampahasi, El Alto and Tilata. The majority of the network distribution system was built in the 1970’s. The first two systems are primarily dedicated to serving the La Paz area; the remaining two systems are primarily dedicated to the El Alto area.
8. Achachicala System:- This system’s water treatment plant was initially built in 1935 and expanded in 1971. Treatment consists of presedimentation, flocculation, sedimentation, filtration and chlorination plus magnesium and iron removal by superficial aeration. Pampahasi System:- This system’s water treatment plant was built in 1971, expanded in 1979 and again in 1994. Treatment consists of flocculation, filtration and chlorination. El Alto System:- This system’s water treatment plant was built in 1979 and provides water to the El Alto region. Treatment for source water consists of aeration, flocculation, filtration and chlorination. The sponsor will implement fire protection measures in all of the chlorine storage areas for the Achachicala, Pampahasi and El Alto treatment plants. Tilata System:- The water treatment plant for this system was built in 1990, and mainly provides pumping and chlorination to underground water sources. This plant exhibits good housekeeping and has a fire safety system.
9. Present raw water quality historic data is limited. Water for the Pampahasi and Tilata Systems is good based on its chemistry. For El Alto, the water source is high in iron and is corrosive thus posing a potential for pipe corrosion. The Achachicala system shows higher levels of conductivity, color, suspended solids, hardness and turbidity. However, treated water quality from all the plants meet Concession standards which are less stringent than US EPA standards but comparable to WHO Standards. For certain parameters, the Concession requires adherence to stricter treatment removal levels than WHO standards. For liquid effluents, the limits set by the Concession are in agreement with the World Bank guidelines with the exception of the following parameters:- total suspended solids, oil and grease, temperature and coliforms. The sponsor has accepted that the project will meet applicable World Bank Guidelines.
10. ADI has two separate sewerage systems currently in operation in La Paz and El Alto, which are also organized according to its water distribution systems. The sewage collection networks are most developed in the Pampahasi and El Alto systems. At present, ADI does not provide treatment to collected sewage, nor does it treat the sludge generated from its water treatment plants prior to disposal in the Choqueyapu and Rio Seco rivers, as well as other minor streams. ADI is currently evaluating options to treat these sludges and consider ultimate disposal to local landfill.
11. In La Paz, the first 5 year period of the Concession does not contemplate wastewater treatment. However, as part of its Concession obligations, ADI is required to complete the preparation of a Sanitation Master Plan before the end of 2001, presenting options to address collection and treatment of wastewaters currently discharged to the Choqueyapu River. These alternatives, together with the reflections of their costs in tariffs, will be presented to the Water Superintendency for approval at that time. As a pre-cursor to the development of such a plan, ADI is already working on the development of an industrial discharges registry and has initiated dialogue with the same industries with the aim of introducing pre-treatment of discharges, currently being released into the sewage system.
12. In El Alto, the Concession requires ADI to treat sewage at the Puchuckollo plant prior to discharge. Construction activities for this plant commenced under the previous municipal utility SAMAPA in 1997. The plant is anticipated to be in operation by December 1998. The Puchuckollo plant will operate through 4 process trains and stabilization lagoons (two anaerobic, two facultative and one polishing lagoon) covering a total surface area of 127 ha and have a total treatment capacity of 1.5m3 /s when all of its modules are operational. The treated effluent will comply with World Bank Guidelines and will be discharged into the nearby Rio Seco River.
13. ADI contracted a technical audit of the facilities which reported “all systems to be in good working condition, structures show no signs of major deficiencies, the equipment is in good working order and maintenance in being carried out. However, equipment at some of the facilities is old, and there is a chance of breakdown.” The technical audit also indicated that the treatment plants needed upgrading to improve dosification and monitoring of chemical additives. In addition, ADI contracted an environmental audit in accordance with IFC requirements. The environmental audit evaluated the environmental impact of the constituent parts of the water supply and treatment systems and identified practical solutions and monitoring programs, which can be implemented within a specific timeframe.
14. The actions identified as a result of the environmental audit are being incorporated by ADI into a Corrective Action Plan which will list the priorities to be carried out within the first years, as well as all environmental improvements to be initiated within the first 5 year period of the Concession. As part of the CAP, ADI will also provide IFC with details of future land acquisition, copies of Environmental Impact Statements prepared for any Category A capital investment projects, and comply with applicable World Bank policies and guidelines for the implementation of the project. It is expected that the CAP will include the need to perform technical studies to provide water treatment plant sludge treatment and disposal alternatives as well as evaluate the level of contaminants found within the filter bed medium and options for disposal. Finally, the CAP will include the development of an Environmental Health and Safety Master Plan, including training of ADI staff, improved health and safety monitoring, and the completion of additional studies to address such issues as fire safety.
13. ADI has established an environmental unit which will begin to address the issues identified in the environmental audit and ultimately reflected in the CAP, as well as the development of environmental management systems across the spectrum of project management and construction activities.
14. With respect to the local regulatory framework, Bolivian environmental legislation is fairly new and enforcement has only recently been initiated. New construction projects will be required to receive an appropriate environmental license from the La Paz prefecture. Depending upon the project category, ADI will need to prepare an Environmental Impact Statement in order to receive this environmental license. ADI will also need to prepare an Environmental Manifest for their existing operations in order to receive the requisite environmental license.
15. A reduction of personnel was carried out at the time of the handover of operations to ADI on August 1, 1997. At the time, SAMAPA’s labor force numbered 639 employees, a figure well in excess of operating requirements. ADI offered early retirement incentives to eligible employees which have been accepted by about 133 individuals since the beginning of operations. These incentives, according to the Bolivian law “Ley General del Trabajo”, offered compensation of one month’s salary per year of service, plus one additional month’s salary for each 5 year period previously worked at SAMAPA. A pro-rata portion of the year end bonus (equivalent to one month’s salary) was also paid depending on length of service. The voluntary early retirement process was well managed, and according to the Company did not face opposition from either existing employees or the general public.
16. IFC will monitor ongoing project compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by ADI and by conducting periodic supervision. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that following the implementation of the Corrective Action Plan, ADI’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.
L:\wpeu\Mainstream Projects\Bolivia\ADI-8738\ERS.doc
August 31, 1998 3:45 PM
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
