Integrated Safeguards Data Sheet (Initial) Report No: AC1015 Section I - Basic Information Date ISDS Prepared/Updated: 09/01/2004 A. Basic Project Data (from PDS) I.A.1. Project Statistics Country: POLAND Project ID: P078250 Project: POLAND - Stargard Geothermal Project (PCF) Task Team Leader: Helmut Schreiber Authorized to Appraise Date: May 29, 2002 IBRD Amount ($m): Bank Approval: November 29, 2004 IDA Amount ($m): Global Supplemental Amount ($m): Prototype Carbon Fund ($m): 1.04 Managing Unit: ECSIE Sector: Renewable energy (50%); Power (50%) Lending Instrument: Specific Investment Loan (SIL) Theme: Climate change (P); Pollution management Status: Appraisal and environmental health (P); Infrastructure services for private sector development (S) I.A.2. Project Objectives (From PDS): The reduction of emissions of carbon dioxide through displacement of coal-fired heat with heat produced from renewable geothermal energy for the District Heating System of the City of Stargard Szczecinski. I.A.3. Project Description (From PDS): The proposed Project will establish a geothermal base-load heating plant with an installed capacity of about 14 MWt opposite the site of the coal fired heat plant of the District Heating Company PEC Stargard. The Project includes two new wells (production and re-injection well) drilled near the existing district heat plant to a depth of about 2,700 meters and the above ground connections to the existing district heating system. Above-ground plant components include a new building which will house heat exchangers, electrical equipment and installations, process equipment and controls and the piping connection to the existing district heating network of Stargard. Total project investment costs are estimated to be $8.6 million. Geothermal heat will be used to displace some of the heat previously provided by Stargard's existing coal-fired boilers. The Project will be financed, operated and managed by GEOTERMIA Stargard sp. zoo. (GP). I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) Stargard Szczecinski (Stargard), the third largest city in the new West Pomeranian Wojewodship, and capital of the new Powiat of Stargard, with a population of almost 75 thousand people, is located 36 km from Szczecin and about 180 km from Berlin. Stargard and Szczecin together form the agricultural and industrial centres of Western Pomerania and are important rail and road communication nodes. Primary economic activity in these cities includes food, clothing, electric machinery, building and tourism industries. Unemployment has risen to above 25% in recent years. Heat sales from the district heating company are about 67% to housing cooperatives, 25% to institutional buildings and the remainder to individual houses. 2 ISDS B. Check Environmental Classification: B (Partial Assessment) Comments: Very limited environmental impacts. Major environmental benefits (global and local). C. Safeguard Policies Triggered (from PDS) (click on for a detailed desciption or click on the policy number for a brief description) Policy Triggered Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) Yes No TBD Natural Habitats (OP 4.04, BP 4.04, GP 4.04) Yes No TBD Forestry (OP 4.36, GP 4.36) Yes No TBD Pest Management (OP 4.09) Yes No TBD Cultural Property (OPN 11.03) Yes No TBD Indigenous Peoples (OD 4.20) Yes No TBD Involuntary Resettlement (OP/BP 4.12) Yes No TBD Safety of Dams (OP 4.37, BP 4.37) Yes No TBD Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) Yes No TBD Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* Yes No TBD Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D.1a. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. The main risks ex ante for environmental damage and impacts were as follows: · Risk of damaging soil and road surfaces during construction works; · Risk of intrusion of geothermal water into the surface or deeper layers of the ground during well drilling; · Risk of contamination of ground water during well drilling; · Risk of damaging impact on the surface of the liquid waste generated by the process of washing out the cuttings during drilling; · Risk of de-stabilization of geological formations caused by well drilling; · Risk of causing damage to environmentally sensitive areas on the ground; These risks were minimized through appropriate mitigation measures as per EMP of 2002, prepared in close cooperation between the Geotermia Stargard Staff and a visiting World Bank team and updated in June 2004. Construction is now almost complete and the system is about to start operations. There are several identified environmental impacts during the imminent operation phase: · Impact on the Ina river of geothermal water occasionally discharged from the reservoir; · Potential impact on the ground water of geothermal water stored in the reservoir as a result of unexpected leakage; · Noise generated in the surface plant around the DH pumps. These impacts are minimized through agreed measures as follows: 3 ISDS · Discharged brines will be diluted with cleaned municipal sewage waters; · Ground water contamination to be monitored to allow timely counter measures; · Noise abatement below 70 dB will be sufficient in the industrial area location. The updated EMP (June 2004) reflects additional requirements for operations of the plant (discharge of limited amounts of geothermal brine). II.D.1b. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. None II.D.1c Describe any potential long term impacts due to anticipated future activities in the project area. None II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) Project is the best Alternative from environmental point of view. Otherwise continuation of full heat production from existing coal-fired heating plant with concomitant higher air pollution (global and local). II.D.3. Describe arrangement for the borrower to address safeguard issues Construction almost complete, and followed earlier EMP. For operations, agreed mitigation measures are as follows: · Discharged brines will be diluted with cleaned municipal sewage waters coming from the nearby municipal sewage treatment plant; · Ground water contamination to be monitored to allow timely counter measures; · Noise abatement below 70 dB will be adequate in the industrial area location. For public consultations see section below. II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Regarding public consultation, representatives of appropriate groups of people have been invited to participate in both administration procedures: for the "construction permit" and the "water permits" (see section above). Especially those few local residents (the Project is located in an industrial area) potentially affected by the project in any significant way have been invited. There was no interest, however, therefore a public meeting was not held. While the construction phase is close to completion now, consultations at this stage of the Project are deemed to be unnecessary. However, for better familiarization with the Project and its significant benefits, local residents and appropriate local authorities will be invited prior to the construction of a planned "Geothermal Business Development and Dissemination Center". The President of Geotermia Stargard will indicate in September 2004 a qualified employee who will be responsible for day-to-day collection of environmental data. The employee will be fully trained in the Polish Environmental Law. E. Safeguards Classification (select in SAP). Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. [ ] S1. ­ Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in 4 ISDS management of one or more safeguard areas [X] S2. ­ One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [ ] S3. ­ No safeguard issues [ ] SF. ­ Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan: Expected Actual Date of receipt by the Bank 12/31/2001 10/15/2001 Date of "in-country" disclosure 1/15/2002 12/10/2001 Date of submission to InfoShop 4/23/2002 Date of distributing the Exec. Summary of the EA to the Executive Not Available Not Available Directors (For category A projects) Resettlement Action Plan/Framework: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Indigenous Peoples Development Plan/Framework: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Pest Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Date of submission to InfoShop Dam Safety Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Helmut Schreiber August 30, 2004 Project Safeguards Specialists 1: Ryszard Malarski/Person/World Bank June 09, 2004 Project Safeguards Specialists 2: J. Christian Duvigneau/Person/World Bank June 09, 2004 Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Ronald N. Hoffer August 25, 2004 Sector Manager/Director Henk Busz August 31, 2004