Environmental & Social Review Summary
Project Number
9624
Company Name
C.A. La Electricidad de Caracas
Date ESRS Disclosed
Feb 5, 2010
Country
Venezuela, Republica Bolivariana de
Region
Latin America and the Caribbean
Last Updated Date
Jan 2, 2017
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 29, 1999
Signed : Jan 19, 2000
Invested : Feb 22, 2000
Sector
Distribution Business
Industry
Infrastructure
Department
Gbl Infrastructure & Natural Resources
Project Description
- 1 -
Project Name VENEZUELA: Electricidad de Caracas (EDC)
Region Latin America and Caribbean
Sector Infrastructure
Project No. 009624
1. C.A. La Electricidad de Caracas, S.A.C.A. (EDC) is a large, vertically integrated private electric utility serving the city of Caracas and surrounding districts. Including subsidiaries, EDC has approximately 1,000,000 customers. IFC’s investment (a corporate loan with A & B loans totaling $75 US million) will enable EDC to carry out important investments in the loss reduction and social areas including two new transmission lines along with substations to reduce technical losses of electricity, new electricity distribution lines to low-income areas, enhanced street lighting thereby improving public safety, telemetering and building capacity for demand side management.
2. This is a category B project according to IFC’s environmental and social 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 environmental and social review of this project consisted of appraising technical, environmental, and social information submitted by the project sponsor as well as a site visit by IFC’s technical and environment staff. The following environmental, social, health and safety aspects of the project were reviewed:
· the overall environmental, social and health and safety performance
capacity of EDC;
· the two new transmission lines and substations;
· the electricity distribution construction process;
· the project’s loss reduction and social development aspects; and
· the EDC generation assets compliance with World Bank thermal
power guidelines.
The information provided about how these potential impacts are to be addressed in the development of the project is summarized in the following paragraphs.
3. EDC’s corporate policy is “Protection of the environment in which we operate, discipline, transparency and safety in all of our actions”. EDC’s environmental policy is to “Promote the conservation, protection and improvement of the environment in areas influenced by our operations for the benefit of the quality of life for our employees and the community in general.” Responsibility for safety, industrial hygiene and environmental protection is the responsibility of the “Departamento de Seguridad Integral” which reports to the “Gerencia Ejecutiva Servicios Corporativos” which reports to the “Vicepresidencia de Servicios Compartidos”. The “Departamento de Seguridad Integral” has fifty staff members and has a long history of positive participation in EDC’s developmental and operational activities. Independent environmental audits of the “Departmento de Seguridad” in twenty areas were completed in 1995 and 1998 and a third audit is scheduled for 2000. The results of these audits are utilized to continually improve quality. EDC is committed to having all of its operations comply with Republic of Venezuela’s (ROV) environmental and social policies and guidelines.
4. The two new transmission lines are a 20 km, 230 kv line from the 1746 MW CGRZ (commonly called Tacoa) gas fixed power plant to the Boyacá substation and the 20 km, 69 kv Junquito line. The proposed 230 kv line will follow the existing transmission line ROW between Tacoa and Boyacá a part of which crosses the Parque Nacional El Avila. An EIA (including a committee of representative from EDC, the Parque Nacional El Avila and the Ministry of Environment) is evaluating alternatives for this new line (including removing old towers and replacing with new ones, adding circuits to existing towers or building new towers). Although this new line will pass through a protected area it is consistent with IFC’s National Habitat policy since it follows existing infrastructure. Most of both transmission lines pass through rugged mountainous territory and are to be constructed using helicopters. Land acquisition is handled by EDC after the design phase whereby landowners are contacted and negotiations entered into. If a negotiated settlement is not reached there is the right to expropriate (this has not occurred in the last ten years). The transmission lines will not involve any relocation.
5. The distribution component of the project consists of the installation of 51 new circuits (all except four in 12.47 kv). About half the circuits are in the municipalities of Libertador and Chacao where service to hillside slums will be expanded. The other new lines will serve new housing, commercial and industrial developments in Caracas. For each new circuit (thirty five percent will be above ground) a routing study is undertaken. It includes identification of key environmental and social receptors, assesses alterations ROWs, and identifies the landowners for which negotiations will be entered into.
6. The reduction of losses and electricity wastage program will substantially reduce carbon emissions. The extension of street lighting will enhance public safety and security.
7. While the corporate loan will not finance the generation side of EDC (EDC has two generation plants, both of which are normally operated on natural gas with respective installed capacities of 1746 MW and 360 MW) the review of this project assessed the environmental performance of these two plants. Only in one area is their non-compliance with the World Bank thermal power guideline. The older gas turbines do not comply with the World Bank guideline for NOx emissions. However, EDC has plans to phase out these gas turbines and replace them with combined cycle technology. This is anticipated to be achieved by 2002. All new EDC operations are PCB free. EDC has disposed of 99.8 percent of its accumulated PCBs with the remaining to be disposed of by the end of the first quarter of 2000. No herbicides are used by EDC in the maintenance of transmission/distribution line ROWs.
8. 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 ROV requirements, as well as World Bank policies, and environmental, social, health and safety guidelines.
9. IFC will monitor 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.
Environmental Review Summary (ERS)
Project Name VENEZUELA: Electricidad de Caracas (EDC)
Region Latin America and Caribbean
Sector Infrastructure
Project No. 009624
1. C.A. La Electricidad de Caracas, S.A.C.A. (EDC) is a large, vertically integrated private electric utility serving the city of Caracas and surrounding districts. Including subsidiaries, EDC has approximately 1,000,000 customers. IFC’s investment (a corporate loan with A & B loans totaling $75 US million) will enable EDC to carry out important investments in the loss reduction and social areas including two new transmission lines along with substations to reduce technical losses of electricity, new electricity distribution lines to low-income areas, enhanced street lighting thereby improving public safety, telemetering and building capacity for demand side management.
2. This is a category B project according to IFC’s environmental and social 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 environmental and social review of this project consisted of appraising technical, environmental, and social information submitted by the project sponsor as well as a site visit by IFC’s technical and environment staff. The following environmental, social, health and safety aspects of the project were reviewed:
· the overall environmental, social and health and safety performance
capacity of EDC;
· the two new transmission lines and substations;
· the electricity distribution construction process;
· the project’s loss reduction and social development aspects; and
· the EDC generation assets compliance with World Bank thermal
power guidelines.
The information provided about how these potential impacts are to be addressed in the development of the project is summarized in the following paragraphs.
3. EDC’s corporate policy is “Protection of the environment in which we operate, discipline, transparency and safety in all of our actions”. EDC’s environmental policy is to “Promote the conservation, protection and improvement of the environment in areas influenced by our operations for the benefit of the quality of life for our employees and the community in general.” Responsibility for safety, industrial hygiene and environmental protection is the responsibility of the “Departamento de Seguridad Integral” which reports to the “Gerencia Ejecutiva Servicios Corporativos” which reports to the “Vicepresidencia de Servicios Compartidos”. The “Departamento de Seguridad Integral” has fifty staff members and has a long history of positive participation in EDC’s developmental and operational activities. Independent environmental audits of the “Departmento de Seguridad” in twenty areas were completed in 1995 and 1998 and a third audit is scheduled for 2000. The results of these audits are utilized to continually improve quality. EDC is committed to having all of its operations comply with Republic of Venezuela’s (ROV) environmental and social policies and guidelines.
4. The two new transmission lines are a 20 km, 230 kv line from the 1746 MW CGRZ (commonly called Tacoa) gas fixed power plant to the Boyacá substation and the 20 km, 69 kv Junquito line. The proposed 230 kv line will follow the existing transmission line ROW between Tacoa and Boyacá a part of which crosses the Parque Nacional El Avila. An EIA (including a committee of representative from EDC, the Parque Nacional El Avila and the Ministry of Environment) is evaluating alternatives for this new line (including removing old towers and replacing with new ones, adding circuits to existing towers or building new towers). Although this new line will pass through a protected area it is consistent with IFC’s National Habitat policy since it follows existing infrastructure. Most of both transmission lines pass through rugged mountainous territory and are to be constructed using helicopters. Land acquisition is handled by EDC after the design phase whereby landowners are contacted and negotiations entered into. If a negotiated settlement is not reached there is the right to expropriate (this has not occurred in the last ten years). The transmission lines will not involve any relocation.
5. The distribution component of the project consists of the installation of 51 new circuits (all except four in 12.47 kv). About half the circuits are in the municipalities of Libertador and Chacao where service to hillside slums will be expanded. The other new lines will serve new housing, commercial and industrial developments in Caracas. For each new circuit (thirty five percent will be above ground) a routing study is undertaken. It includes identification of key environmental and social receptors, assesses alterations ROWs, and identifies the landowners for which negotiations will be entered into.
6. The reduction of losses and electricity wastage program will substantially reduce carbon emissions. The extension of street lighting will enhance public safety and security.
7. While the corporate loan will not finance the generation side of EDC (EDC has two generation plants, both of which are normally operated on natural gas with respective installed capacities of 1746 MW and 360 MW) the review of this project assessed the environmental performance of these two plants. Only in one area is their non-compliance with the World Bank thermal power guideline. The older gas turbines do not comply with the World Bank guideline for NOx emissions. However, EDC has plans to phase out these gas turbines and replace them with combined cycle technology. This is anticipated to be achieved by 2002. All new EDC operations are PCB free. EDC has disposed of 99.8 percent of its accumulated PCBs with the remaining to be disposed of by the end of the first quarter of 2000. No herbicides are used by EDC in the maintenance of transmission/distribution line ROWs.
8. 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 ROV requirements, as well as World Bank policies, and environmental, social, health and safety guidelines.
9. IFC will monitor 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.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
