INTEGRATED SAFEGUARDS DATASHEET
UPDATE - ADDITIONAL FINANCING APPRAISAL STAGE
I. Basic Information
Date prepared/updated: 12/17/2010
Report No.: 58725
1. Basic Project Data
Country: Croatia
Project ID: P093767/P118260
Project Name: TRADE AND TRANSPORT INTEGRATION
Task Team Leader: Gerald Paul Ollivier
Estimated Appraisal Date: May 23, 2006
Estimated Board Date: November 14, 2006
Estimated Appraisal Date (additional
Estimated Board Date (additional
Financing): January 3, 2011
financing): March 29, 2011
Managing Unit: ECSIE
Lending Instrument: Specific Investment
Loan
Sector: Ports, waterways and shipping (100%)
Theme: Infrastructure services for private sector development (P);Trade facilitation and
market access (P)
IBRD Amount (EURm.):
Other financing amounts by source:
BORROWER
EBRD
108.8
21.1
11.2
141.1
Environmental Category: A - Full Assessment
Simplified Processing
Simple [X]
Is this project processed under OP 8.50 (Emergency Recovery)
Repeater []
Yes [ ]
No [X ]
2. Project Objectives
The overall development objective is to develop trade along Corridor Vc by improving
the capacity, efficiency and quality of services on the southern end of Corridor Vc with
particular focus on the port of Ploce and on coordination aspects among all corridor
participants. The project seeks to achieve this objective through: (i) increased throughput
capacity of the port and railway infrastructure; (ii) efficient operation of the corridor
including the Port of Ploce; (iii) high quality of services; (iv) competitive alternative to
other corridors; and, (v) increased private sector involvement to address these priorities,
reduce commercial risks and secure financing for port cargo handling equipment.
3. Project Description
The following describe the project, including the additional financing and scaling up.
Project cost and components. The total project cost is estimated at €141.1 million, with
€58.8 million from a World Bank loan (US$78.2 million equivalent) approved in 2006,
supported by additional financing of €50 million (US$ 66.5 million equivalent), €11.2
million from EBRD, €21.0 million from the Government, and €0.1 million from PPA.
This includes the interest during implementation and loan fees and charges. The project
includes three components: (i) Port Infrastructure Development of Ploče, (ii) Trade and
Transport Integration, and (iii) Project Implementation. In parallel, the Government will
finance upgrades for the Croatian Railways (HZ) in Ploče, defined during preparation but
not included under this project.
Component 1: (total cost with contingencies - €127.8 million). The Port Infrastructure
Development component includes the following subcomponents: (i) construction of a
new container terminal (CT), with an initial capacity of 66,000 TEU, increasing over time
with investments financed by the concessionaire to 270,000 TEU; (ii) construction of
infrastructure for a new bulk cargo terminal (BT), scaled up compared to the original
project, with an initial capacity of 4.6 million tons (instead of 4), able to accommodate
vessels up to 120,000 DWT (instead of 80,000 DWT) with increased productivity (of
about +30 percent); and (iii) construction/rehabilitation of the supporting port
infrastructure (road, rail, water, wastewater and power supply) within the port area
including a new entrance facility, connecting the new terminals with the existing utility
infrastructure.
Component 2: (total cost with contingencies - €1.5 million). The Trade and Transport
Integration Component includes the development and rollout of a modern electronic port
community system, integrating all members of the port community (shipping lines,
shipping agent, stevedoring companies, banks, rail, road transport, border agencies…)
into a seamless information system enabling accurate and timely exchange of information
and automated processing, where appropriate. It includes: (i) necessary hardware (e.g.
servers, computers); (ii) networking cost; (iii) software; (iv) training of users and
administrators; (v) technical services; and (vi) security features. The system will facilitate
integration of information flows along the corridor Vc by defining document exchange
interfaces based on international standards. These interfaces will facilitate systematic
performance measurement across the transport chain.
Component 3: (total cost with contingencies - €5.4 million). The Project
Implementation Component includes the services required to support the successful
implementation of the project. This covers in particular: (i) technical assistance to PPA
to implement its business plan and establish the concession for new terminals; (ii)
technical services required for the supervision of project components; (iii) audit services
for the project and PPA; (iv) training on project management, procurement and financial
management; (v) procurement support; and (vi) incremental implementation costs.
In addition, the project includes financial costs, such as front end fees, commitment
charges and interest during construction. (€6.3 million)
The additional financing would change the design of the BT as follows:
1.The layout of the quay structure will now be 317 x 30/35 m compared to the original
design solution (350 x 28 m);
2. An access structure of about 56 x 23 m will be constructed in the berth’s longitudinal
axis to provide access to the 317 m long quay. In the original design solution the access
was enabled from the storage area behind the quay. The access structure will not affect
the channel width or current, as it will bridge mainly the rock-armored channel slope
between the quay and the storage area.
3. A change in quay structure type (steel pile with rear slope) will result in increased
quantities of dredging (from 600,000 m3 to an estimated 1,280,000 m3). The change is
warranted by the physical load and geotechnical characteristics, and the need to comply
with new standards adopted as part of the EU convergence process. The new channel will
be 18 m deep and 120 m wide compared to the original dredged channel of 15 m depth
and 120 m width in order to accommodate larger vessels. Dredging will take place to
minus 20 meters under the quay.
4. As part of the CT construction contract, there will also be additional dredging in the
existing harbor basin near pier 5 (opposite of planned container terminal), where the draft
will be increased from 12 to 15 m on an area measuring about 170 x 85 m. This will
produce additional 59,000 m3 of dredging spoils.
4. Project Location and salient physical characteristics relevant to the safeguard
analysis
The proposed project comes in response to the restructuring of heavy industries in Bosnia
and Herzegovina (BiH), which is leading to strong traffic growth on the Pan-European
Corridor Vc, which connects the port of Ploce, in Croatia, to major BiH cities and
industrial centers (Mostar, Sarajevo, Zenica, Zvornik), both by road and rail. The corridor
has a comparative advantage to serve these markets, providing the shortest and lowest
cost land route to the Sea compared to its main competitors. Besides good maritime
conditions and a natural bay, there is an attractive lowland railway connection towards
the inland. The Port of Ploce, located on the Adriatic coast at mid-distance of Split and
Dubrovnik, is the gateway to the corridor. It is the second port after Rijeka in terms of
national significance. Its further development is stated in Government policy and
strategy. About 80 percent of the traffic transits to/from BiH. The port site is well
protected by the peninsula of Peljesac and offers large available areas for existing and
forthcoming activities.
The Corridor and the port of Ploce border an area proposed for protection called the
Neretva Valley, which includes a significant wetland on the Eastern Adriatic Coast. This
wetland is protected under the Ramsar Convention on Wetlands and is included in the
Important Bird Areas Program by BirdLife International. As such any project in its
vicinity requires careful analysis, planning, and design of suitable environmental
management plans, as was done for this project.
The project includes the construction of a container terminal (now completed) and a bulk
terminal (BT) with supporting port infrastructure (road, rail, water, wastewater and power
supply) within the port area. Preparatory works for the construction of the new BT are
almost completed, in a previously undeveloped area of the port. Prior to these preparatory
works, it included meager vegetation growing on material dredged from the sea (over
several decades) and deposited over large parts of the area. In terms of environmental
protection, this area does not have either local or regional importance. It is located more
than two kilometers away from the city of Ploce and a kilometer away from the existing
terminal. The relocation of the terminals will result in substantial reduction of current
nuisances from both noise and dust, even prior to additional mitigation measures included
in the Project.
Under the proposed additional financing, the following additional activities are proposed
to be carried out: (i) covering of financial gap created during the CT construction; and (ii)
BT construction with a changed layout compared to the originally planned structure, as
indicated in section 3.
5. Environmental and Social Safeguards Specialists
Ms Natasa Vetma (ECSS3)
Mr Wolfhart Pohl (ECSS3)
6. Safeguard Policies Triggered
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Forests (OP/BP 4.36)
Pest Management (OP 4.09)
Physical Cultural Resources (OP/BP 4.11)
Indigenous Peoples (OP/BP 4.10)
Involuntary Resettlement (OP/BP 4.12)
Safety of Dams (OP/BP 4.37)
Projects on International Waterways (OP/BP 7.50)
Projects in Disputed Areas (OP/BP 7.60)
Yes
X
X
No
X
X
X
X
X
X
X
X
II. Key Safeguard Policy Issues and Their Management
A. Summary of Key Safeguard Issues
1. Describe any safeguard issues and impacts associated with the proposed project.
Identify and describe any potential large scale, significant and/or irreversible impacts:
The incremental activities resulting from the currently planned project up-scaling will not
have significant additional environmental impacts. The overall impact of the original
Project extended with its additional financing will be an improvement of the present
environmental situation. Most bulk handling will be relocated two kilometers away from
the urban area of Ploce instead of one kilometer away as it currently is, thereby reducing
noise and dust impact.
The proposed measures under the Environmental Management Plan (EMP) and
addendum for the EIA and EMP prepared by PPA will benefit the environment as well as
the inhabitants of Ploce. These measures consist of: (a) treatment of polluted storm water
in regard to suspended solids, oil, grease, etc.; (b) reduction of dust from handling of bulk
material through installation of a sprinkling system and use of polymers to bind the finest
dust particles, and the use of covered conveyor belts for the transport of bulk material to
the storage area; (c) installation of reception facilities for hazardous waste, wastewater
from arriving vessels, and bilge water; and (d) treatment of sanitary wastewater generated
inside the Port in a two-stage treatment plant including a biological step.
The largest potential impact on sea water and marine communities will come as a result
of the dredging necessary to provide ship access to the new terminals. As a result, the
project is classified as a Category A project in accordance with OP 4.01. The total
amount of dredging masses under the original project was estimated at about 600,000 ton,
all within the existing port area. With the Additional Financing, the amount of dredged
material will increase to about 1.28 million ton on the BT and an additional 59,000 m3 on
the Container Terminal.
The dredging operations are not expected to have any significant negative impact on the
marine or aquatic ecosystems of the delta. Dredged material will be removed from an
area which, according to the EA, does not include biologically important or unique
ecosystems.
The increased dredging works (in terms of dredged volume and to a lesser extent in area)
would be carried on in the coastal waters and Vlaska channels adjacent to the port, but
largely in the same locations as originally foreseen. The dredged material would be
deposited in the same area as originally foreseen, which is an existing reclamation area
on the port perimeter with sufficient storage capacity. That area will be constructed as a
confined and sealed area before the dredging masses are deposited. Sediment at the Port
of Ploce was classified as second class sediment, i.e. slightly polluted sediment. The
leachete test also indicated that the concentrations of hazardous substances in sediment
eluat are low.
The original project EIA defines mitigation measures and practices for disposal /
handling of dredged material, and the same measures would be followed for the handling
of additional dredged material. Water draining from the dredging masses will be
discharged into the sea. In order to prevent the possibility that such a discharge would
create problems with emissions of different types of pollutants, as well as turbidity
caused by suspended solids, the drainage water will first be treated in a settling pond and,
before being discharged to the sea, filtered through a geo-membrane placed inside the
wall of the confined and reclaimed area, to ensure that the eventual turbidity effect is
minimized and that suspended solids stay inside the confined area. The coastal waters in
front of the reclamation area and along Vlaska channel, and in the existing harbor basin
near port 5 (opposite of the CT) are characterized by existing anthropogenic impacts
consisting of regular dredging (every 3-5 years) and marine construction. The redesigned,
wider dredging cross-section in the Vlaska Channel area will remain within the limits of
the already existing technologically maintained channel.
In addition, the provisions in the EMP restrict dredging in seasons of enhanced
spawning/migration activity of sensitive marine species. The situation was reconfirmed
by a recent repeated benthic survey in May 2009.
Other adjustments to the original project would not have any significant, large scale or
irreversible impact.
OP7.50 is triggered for the project and notification has been done for the original project.
The scaling up is a small part of the additional financing (about EUR5 million), which
leads to a relatively small increase in the overall port capacity. Accordingly, it was
determined that the original notification would suffice for the purpose of OP7.50.
Other aspects are not triggering safeguard issues: (i) all land necessary for establishing
the new terminals, as well as the additional sub-component 1 (iii) is within the existing
port area, so there is no need to acquire additional land or resettle inhabitants (OP 4.12
does not apply accordingly); (ii) the area was never populated nor used for settlement and
it is not expected that anything of cultural value could be found (OP 11.03 is not
triggered). A chance find clause will nonetheless be added to construction contracts.
2. Describe any potential indirect and/or long term impacts due to anticipated future
activities in the project area:
The project is not expected to result in any substantial indirect and long term impacts.
Aside from dredging, the main potential impacts that were analyzed include: (a) impact
on the adjacent RAMSAR site Neretva Valley; and (b) impact of additional traffic in the
port and along the corridor.
The proposed area for protection called Neretva Delta, as part of the Neretva Valley, is
located just about 150 meters from the planned location of the new BT. The Neretva
Valley, an area on the Eastern Adriatic Coast including a significant wetland, is protected
under the RAMSAR Convention on Wetlands. The Valley is also included in the
Important Bird Areas Program by Bird Life International. The RAMSAR site is
proposed to become a Natural Park, but no decision on that has been taken up to now.
During initial consultation, NGOs interested in the protection of the Neretva Valley
raised several issues of concern. These led to a reduction of the dredging quantities to
avoid any dredging in the RAMSAR site. In addition, the berth for the BT has been
moved to the early entrance of the Vlaska Channel, thereby also reducing the need for
dredging within the channel.
The EA concludes that the impact of the Project on the RAMSAR site is expected to be
very limited. While the Neretva Valley has become famous for its bird sanctuaries, these
sanctuaries are located in different places 12-16 km away from the Port, with no impact
on those during construction or operation. Two other areas of biological significance that
are closer to the Port include a fish and ornithological reserve (Usce Neretve), which is
located two kilometers South of the port; and Lake Parila proposed ornithological
reserve, which is adjacent to the proposed BT. No impact is expected on Usce Neretve.
Impacts on the Lake Parila area is likely to be temporary and short term and associated
with noise disturbance and dust coming from construction and heavy vehicle traffic.
Proper mitigation measures are integrated in the project design to avoid any significant
impact on the RAMSAR site during later port operations. Monitoring of current noise and
dust emission related to the existing location shows that all monitored results are within
Croatian regulations. The RAMSAR Secretariat was informed on March 6, 2006, and
provided the links to PPA's website, where the EAs as well as the EMPs are made
available.
The project will not result in any significant conversion or degradation of natural habitats.
Special attention will be paid during supervision to ensure that the construction and
operation of the new terminals do not have any significant negative impact on the nearby
habitats in the protected area. The project does not extend to such areas, and it includes
measures on dredging disposal within the port area and limits regarding noise level and
dust level. The Port of Ploce is maintaining regular communication with Local NGOs and
Ministry of Culture on the progress of works. The additional financing investments were
as well presented and discussed with the State and County Nature Protection Agency.
Another aspect which was reviewed is the foreseen traffic expansion and the impact of
this additional activity within the port and on the corridor. Even after construction of
those terminals, Ploce will remain a mid-size port by international standards and traffic
will remain within very reasonable limits. Container traffic will translate on average in
about 150 trucks per day, while bulk traffic will represent about 20 to 30 pairs of trains
per day. These levels of traffic are relatively modest by international standards,
particularly since new connecting infrastructure is being constructed outside this project
(e.g., motorway to Split). The scaling up aims at attracting a broader range of clients to
reduce traffic fluctuations, but does not anticipate a significantly higher volume of traffic
than previously in the long term.
The environmental management plans include mitigation measures to reduce several
environmental nuisances currently generated by the existing port activities such as noise,
dust and water supply, and to properly address earlier NGO concerns. Noise levels and
air quality for the new terminals were simulated and will not impact populated areas in
Ploce. These measures consist of: (a) treatment of polluted storm water in regard to
suspended solids, oil, grease, etc.; (b) reduction of dust from handling of bulk material
through installation of a sprinkling system and use of polymers to bind the finest dust
particles, and the use of covered conveyor belts for the transport of bulk material to the
storage area; (c) installation of reception facilities for hazardous waste, wastewater from
arriving vessels, and bilge water; and (d) treatment of sanitary wastewater generated
inside the Port.
3. Describe any project alternatives (if relevant) considered to help avoid or minimize
adverse impacts.
The berth for the bulk terminal was moved to avoid any physical impact on the
RAMSAR site. Five alternative locations were studied during the preparation, and the
final location chosen is the one with least impact on both the aquatic life and the
RAMSAR site. The type of vessels to be accommodated by the new BT was scaled back
significantly to ensure that dredging materials could be deposited on shore with no
dredging taking place in the RAMSAR site.
4. Describe measures taken by the borrower to address safeguard policy issues. Provide
an assessment of borrower capacity to plan and implement the measures described.
PPA commissioned the preparation of an EA for the CT in 2003. In 2004, the Ministry of
Environment (MoE) launched on that basis the statutory procedure for issuance of a
location permit, with proper public consultation. By law, such process requires the
consultant to observe all relevant Croatian laws, by-laws, and regulations, as well as
applicable international agreements signed by the Republic of Croatia. This EA was
approved by the corresponding MoE Committee in March 2005, before preparation of
this Project started. After further review of the EA, coverage of some aspects was
expanded to meet World Bank OP 4.01 requirements. The Final EA was issued to the
InfoShop in February 2006. Similarly the EA for the BT has been finalized, presented to
NGOs and issued to the InfoShop.
An Overarching EA was prepared to address the cumulative impacts of the port
expansion and is disclosed in Infoshop and in Croatia.
PPA had to renew its request for a location permit to reflect the proposed changed/
upgrades in the BT. PPA originally obtained the location permit on May 8, 2007 from
MEPPPC. Prior to obtaining the location permit for BT, PPA requested an Opinion from
the Directorate for Environmental Management, Sector for Environmental Assessment
and Industrial Pollution of MEPPPC on the need to updating the EIA based on Croatian
EIA legislation. The opinion stated that the scaling up is not expected to result in any
significant incremental change from an environmental point of view, compared to the
original design for the BT. Thus, from the perspective of the permitting authority, PPA is
required to implement measures of environmental protection and monitoring already
established in the approved EIAs / EMPs on all activities covered by the additional
financing. In accordance with the changed conditions, PPA requested amendments to the
location permit, which were approved on 7 July 2009.
In a spirit of creating clear, unambiguous safeguards documentation PPA prepared an
addendum to the EIA/EMP as part of the additional financing preparation, outlining the
context, identifying environmentally relevant activities as well as their diligent
management under World Bank safeguards policies. These were disclosed in February
2010.
The component Port supporting infrastructure (component 1 (iii)) is of a category B
nature and has been reviewed through a limited environmental analysis included in
Annex 10 of the original project PAD.
PPA has its own environmental specialist who has so far successfully supported
implementation of the EMPs for the construction works for the CT and BT and followed
up all indicators in accordance with the Monitoring Plans. Furthermore, the Government
through its MEPPP and its Ministry of Culture has followed up on the implementation of
EMPs as well. PPA shares the results of ecological / environmental studies with the
competent bodies in the county, municipality and at the state level on an annual basis. In
addition to these requirements, PPA shares the results with four major NGOs in the
county to keep them well informed.
Separate EMPs for both terminals have been prepared, as well as a separate updated EMP
for the additional activities mentioned above. The EMPs outlines all the parameters to be
monitored to control quality of wastewater, storm water, drainage water from dredging
masses, noise, air pollution, management of both construction waste and waste generated
by arriving ships, during both construction and operation, as well as amount of dredging
masses.
As a result of the Croatian EA consultation process, concerns were raised about the
possible impacts of the port development on birds that use the port development and
adjacent conservation areas of the Neretva Delta. As a consequence, PPA agreed to
monitor usage of the port and adjacent areas by migratory and breeding species of birds
before, and then during, port development. In the event significant impact on bird usage
is detected, appropriate additional remedial measures will be designed.
5. Identify the key stakeholders and describe the mechanisms for consultation and
disclosure on safeguard policies, with an emphasis on potentially affected people.
As mentioned above, the EA for the CT was prepared before the Bank became involved
in the Project, and its preparation has followed the Croatian legislation, which does not
have an EA screening system similar to Bank's OP 4.01. However, main stakeholders
were involved in the review and approval process, to which the public were also invited,
as required by the Government's review procedure.
Concerning the EA for the BT, stakeholders representing different governmental
organizations, NGOs and the public were involved in discussion of the TOR for the EA
before the work was started as well as during its preparation. As part of the preparation
of the BT EA, public meetings were held in June and October 2005, and comments
received were fully incorporated in the Draft Final Report. On March 16, 2006, a new
public meeting was organized, with the public having access to the EA Report both in
English and Croatian two weeks ahead of the meeting. During the last meeting no new
issues were brought forward. The meetings were all announced in both local and
regional press, and people and NGOs (or their local partners) which were known having a
special interest in the Project were personally contacted and informed about the meetings.
During the Government's review of the EA, an additional public meeting will be
announced, but it is not expected that any new issues will be brought up during that
meeting, which have not already been covered and presented in the EAs.
The addendum to the EIAs and EMP for TTI project was disclosed on the website of PPA
in January 2010 and distributed to Infoshop and within the Bank on February 19, 2010. In
addition all projects environmental due diligence documents were re-disclosed.
B. Disclosure Requirements Date
Environmental Assessment/Audit/Management Plan/Other:
Date of receipt by the Bank
02/19/2010
Date of "in-country" disclosure
02/19/2010
Date of submission to InfoShop
02/19/2010
For category A projects, date of distributing the Executive
Summary of the EA to the Executive Directors
* If the project triggers the Pest Management and/or Physical Cultural Resources,
the respective issues are to be addressed and disclosed as part of the Environmental
Assessment/Audit/or EMP.
If in-country disclosure of any of the above documents is not expected, please
explain why:
C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the
ISDS is finalized by the project decision meeting)
OP/BP/GP 4.01 - Environment Assessment
Does the project require a stand-alone EA (including EMP) report?
If yes, then did the Regional Environment Unit or Sector Manager (SM)
review and approve the EA report?
Are the cost and the accountabilities for the EMP incorporated in the
credit/loan?
OP/BP 4.04 - Natural Habitats
Would the project result in any significant conversion or degradation of
critical natural habitats?
If the project would result in significant conversion or degradation of other
(non-critical) natural habitats, does the project include mitigation measures
acceptable to the Bank?
OP 7.50 - Projects on International Waterways
Have the other riparians been notified of the project?
If the project falls under one of the exceptions to the notification
requirement, has this been cleared with the Legal Department, and the memo
to the RVP prepared and sent?
What are the reasons for the exception? Please explain:
Has the RVP approved such an exception?
The World Bank Policy on Disclosure of Information
Have relevant safeguard policies documents been sent to the World Bank's
Infoshop?
Yes
Yes
Yes
No
Yes
Yes
N/A
N/A
N/A
Yes
Have relevant documents been disclosed in-country in a public place in a
form and language that are understandable and accessible to project-affected
groups and local NGOs?
All Safeguard Policies
Have satisfactory calendar, budget and clear institutional responsibilities
been prepared for the implementation of measures related to safeguard
policies?
Have costs related to safeguard policy measures been included in the project
cost?
Does the Monitoring and Evaluation system of the project include the
monitoring of safeguard impacts and measures related to safeguard policies?
Have satisfactory implementation arrangements been agreed with the
borrower and the same been adequately reflected in the project legal
documents?
Yes
Yes
Yes
Yes
Yes
D. Approvals
Signed and submitted by:
Task Team Leader:
Environmental Specialist:
Social Development Specialist
Additional Environmental and/or
Social Development Specialist(s):
Name
Mr Gerald Paul Ollivier
Ms Natasa Vetma
Date
12/16/2010
12/15/2010
Approved by:
Regional Safeguards Coordinator:
Ruxandra Floroiu
Comments: cleared on behalf of Agi Kiss
Sector Manager: Henry Kerali
Comments: Approved
12/17/2010
12/27/2010