PROJECT

Projects

Environmental & Social Review Summary

Project Number

9896

Company Name

STRADCOM Corporation

Date ESRS Disclosed

Feb 5, 2010

Country

Philippines

Region

East Asia and the Pacific

Last Updated Date

Jan 2, 2017

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Mar 28, 2000
Signed : Jul 27, 2000
Invested : Dec 26, 2001

Sector

Other Support Activities for Transportation (Grain Terminals, Cargo Terminals, Airport Operations)

Industry

Infrastructure

Department

Regional Industry - INF Asia & Pac

Project Description

Environmental Review Summary (ERS)


Project Name Philippines - Land Transportation Office - Information Technology Project

Region Asia and the Pacific

Sector Infrastructure

Project No. 009896


1. The Philippines Land Transportation Office-Information Technology Project (LTO-IT) is a Build-Own-Operate concession granted to Stradcom Corporation for an initial term of ten years to computerize and interconnect the 247 offices of the LTO. The project aims to enhance public service by ensuring faster on-line transaction processing for driver’s licensing and motor vehicle registrations. Processing time for the various LTO services (e.g., motor vehicle registration, driver’s license renewal, and new license and permit issuance) is expected to decrease by 75-95%. Other project goals include improvement in revenue collection in the LTO system, reduction of criminal activities such as car-napping and falsification of official documents, development of a database on the land transport industry and its users, and provision of real-time flow of information among the different LTO offices.

2. Stradcom Corporation is a consortium formed for the purpose of this concession, and is owned by Strategic Alliance Development Corporation, a private Philippine company whose primary business is project management and financial consultancy for infrastructure, information technology and industrial development projects; and Comfac Corporation, also a private Philippine company that is a local leader in information technology planning and management. Stradcom has hired the Philippines operations of Unisys Corporation to be the systems integrator for the project, which entails provision of appropriate hardware, development of appropriate software packages, and training of personnel.

3. Detailed software design for the LTO core applications has been completed. Site surveys of the 31 offices in the National Capital Region have been carried out, and no environmentally sensitive issues have been found. Construction on the project headquarters is expected to be completed by April 2000. The first phase of project implementation, which involves the modernization of the 31 offices in the National Capital Region, is expected by July 1, 2000 and rollout to the remaining 216 offices nationwide is expected by December 31, 2000.

4. 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 review of this project consisted of appraising technical, environmental, and social information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s staff and its technical consultant. The following potential environmental, social, health, and safety impacts of the project were analyzed:

· implementation of a program-wide environmental, health and safety management program; and
· fire and life safety compliance of company facilities.

Information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.

5. Environmental and social issues associated with this project arise from construction and operation of the central office facility in Manila, the establishing of an offsite data recovery center, network connections between the Manila facility and LTO’s regional and district offices, and the installation and maintenance of computer systems in LTO offices. Stradcom has developed and is implementing a program-wide environmental and social management plan that encompasses facilities development and operation, and employee training and health and safety programs.

6. The central facility in metro Manila is a new, purpose-built four story building being constructed by Stradcom to administer the contract and operate the network. The building site was formerly used by the LTO for its operations, and no resettlement of people or remediation of contamination was required. Utilities will be provided by municipal systems, and the company has confirmed that air conditioning and fire systems will be CFC-free. Stradcom has arranged for an independent fire and life safety audit of the facility; completion of the audit and commitment by the company to implement its recommendations will be a condition of IFC’s disbursement. The data recovery center is expected to be in leased space and would be required to conform to IFC environmental and health and safety guidelines.

7. Land lines and wireless links between project facilities will be established and maintained by service providers. Stradcom will coordinate with its service providers and make its best efforts to ensure that any new links installed to support the project are constructed in accordance with Government of Philippines and World Bank Group requirements. Each LTO regional and district office will require renovation of the public facilities to incorporate the new IT systems. Stradcom’s environmental and social management plan includes provisions for control of construction forces and removal and disposal of obsolete equipment.

8. The company has included in its plan provisions for development of safe and healthful workplace conditions, training programs, and other support actions. The project will be providing valuable technical training to almost 2,800 LTO employees of a total of approximately 3,500. The rehabilitation of the LTO offices is expected to improve working conditions, and the introduction of new technology is expected to result in more motivated and productive staff. Stradcom will not be responsible for any of the existing LTO personnel; LTO expects that no staff redundancies will result from the project, as opportunities are available within LTO’s other operations for those employees who are displaced by the modernization.

9. The LTO-IT project will improve the LTO''s efficiency and quality of service, as well as reduce the time people spend in obtaining and renewing their licenses/registrations. The project will also introduce state-of-the-art computer technology to the government, not only in Manila but also throughout the country. The computerization of the LTO will allow people in different parts of the country to access their records and services in any LTO branch location; the increased accessibility will also improve the country''s safety/driving standards by making it easier to monitor and prosecute people who commit driving-related offenses.

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

11. IFC will monitor Stradcom Corporation’s ongoing compliance with World Bank Group 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