INTEGRATED SAFEGUARDS DATA SHEET RESTRUCTURING STAGE Note: This ISDS will be considered effective only upon approval of the project restructuring Public Disclosure Copy Report No.: ISDSR8745 Date ISDS Prepared/Updated: 11-Jun-2014 Date ISDS Approved/Disclosed: 13-Jun-2014 I. BASIC INFORMATION 1. Basic Project Data Country: Egypt, Arab Republic of Project ID: P113416 Project Name: Egypt - Wind Power Development Project (P113416) Task Team Waleed Saleh I. Alsuraih Leader: Estimated 27-Apr-2010 Estimated 15-Jun-2010 Appraisal Date: Board Date: Managing Unit: MNSEE Lending Specific Investment Loan Instrument: Sector: Other Renewable Energy (100%) Theme: Climate change (100%) Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and No Emergencies)? Financing (in USD Million) Public Disclosure Copy Total Project Cost: 803.50 Total Bank Financing: 70.00 Financing Gap: 0.00 Financing Source Amount Borrower 62.30 International Bank for Reconstruction and Development 70.00 Borrowing Agency 450.00 Clean Technology Fund 150.00 EC European Investment Bank 70.00 GERMANY KREDITANSTALT FUR WIEDERAUFBAU (KF 0.70 Public-Private Infrastructure Advisory Facility 0.50 Total 803.50 Environmental B - Partial Assessment Category: Is this a No Repeater project? Page 1 of 10 2. Current Project Development Objectives The proposed project development objectives are to assist the Government of Egypt to commercialize and scale-up its Wind Energy program. Public Disclosure Copy Proposed New PDO (from Restructuring Paper) The proposed project development objectives are to assist the Government of Egypt to commercialize and scale-up its Wind Energy program. 3. Project Description The project comprises transmission infrastructure development and support for the construction of the first 250 MW BOO wind project along with technical assistance for (i) facilitating the competitive bidding and (ii) to establish procedures to enable the system operator to manage the integration of large blocks of intermittent wind generation within the power system. The transmission infrastructure development for wind power development in the Gulf of Suez and Gabel El-Zait area requires 220kV and 500kV transmission lines and associated substations to evacuate about 3000 MW of wind energy. By 2015 wind power would reach 2,530MW at Elzait and Ras Gharib in addition to the existing 545MW in Zafarana (1) and (2) and 540MW at Gulf of El-zait by 2013. The new 500 kV transmission line funded under the project would be required by 2015 to reinforce the capability of the grid to enable the evacuation of an additional 2,530 MW of wind power from Suez Gulf to distant load at the national network. The 500kV transmission line would initially transmit the power from the 250MW IPP wind farm along with another two upcoming wind farms to reach 2,530MW by 2015 in the Ras Gharib (Gulf of Suez). In particular, the project will be undertaken through the following major components: Component A- Transmission Infrastructure (US$ 343 million, of which IBRD is US$ 70 million, CTF is US$ 148.2 million, EIB is US$ 70million and GoE is US$ 54 million). This component involves several sub-components that together contribute to the full transmission infrastructure development and brings together financing from IBRD/CTF, European donors led by European Public Disclosure Copy Investment Bank (EIB), but including Agence Française de Développement (AfD)/Neighborhood Investment Funds (NIF) and Kreditanstalt für Wiederaufbau (KfW)/NIF. # A1- 500kV double-circuit Overhead Head Transmission Line (OHTL): This sub-component involves construction of the transmission line from Suez Gulf to Samallout (about 280 km). This includes the single responsibility Design, Supply and Installation rate based contract for all components (towers, cable, insulators and materials, ground wires with fiber optics communication links, and foundations for the complete construction of the Transmission Line. Tendering for the transmission line will be based on a preliminary route survey to provide estimated quantities of tower types, foundations, conductors, etc. provided by EETC’s consultant EPS. # A2 Construction of 500kV/220kV GIS Substation in Ras Gharib (at Suez Gulf): This sub- component to be financed by the EIB includes a single responsibility Design Supply and Install contract for the provision of all components (switchgear, breakers, switches, protection, control, telecommunication, etc.) for the complete construction of the Substation based on design details provided by EETC’s consultants. The sub-component also includes one Supply and Install contract for one transformer 500kV/220kV, 500 MVA. # A3 Extension of Samallout 500kV/220kV GIS substation: This sub-component to be financed by EIB includes a single responsibility Design, Supply and Install contract for the provision Page 2 of 10 of all components (switchgear, breakers, switches, protection, control, telecommunication, etc.) to accommodate a new 500MVA 55/22kV transformer and the associated GIS busbars. This contract will be based on a design provided by EETC’#s consultants that includes the supply and installation Public Disclosure Copy of one 500kV/220kV, 500 MVA transformer. # A 4 Construction of double-circuit 220 kV line from Ras Gharib to Gabel El-Zait: This sub- component involving construction of about 50 km of 220 kv transmission line that will be financed by the borrower in accordance with EETC’s standard procurement practice. Component B Technical Assistance to support the expansion of Egypt's wind generation program (US$ 2.9 million of which CTF is US$ 1.75 million) # B1 Technical Assistance for the development of the wind BOO program ( US$ 1.5 million of which CTF is US$ 1 million): This component would provide consultant support to the EETC in the competitive bidding program for the first 250 MW project. The advisory services are being provided in two phases with the first phase having already commenced with support from the PPIAF to provide support in the preparation of the Request for Proposals (RFP) and the second phase to be supported under the CTF to provide legal and financial advisory support through financial closure. # B2 Technical Assistance to support Management of Wind Power Integration in Egyptian Power Market (CTF $500,000): This objective of this component is to support the rapid development of the wind energy market in Egypt by recommending guidelines to the system operator for the optimal scheduling of complementary generation and demand so as to integrate wind generated power into the Egyptian power market while ensuring the security of the transmission system operations # B3 Technical Assistance to perform Environmental Assessment including Ornithological survey (KfW $650,000) An environmental and social assessment including ornithological survey is underway covering roughly 200 Sq km area (roughly 1000 MW) including the site of the proposed Public Disclosure Copy 250 MW BOOT project with support from the KfW. # B4 Knowledge Management (CTF $ 250,000) This sub-component would be expected to address three basic elements : (i) communications with local stakeholders, including Civil Society Organizations (CSOs) and the private sector on project activities, results and lessons; (ii) capture of lessons during the project implementation process; and (iii) the sharing of such lessons with other CTF country partners. # Component C- Gulf of Suez 250 MW BOO project (US$ 450 million): This component will involve development and construction of a 250 MW wind farm in Gulf of Suez by a private sector operator under a BOO approach. As described earlier, the pre-qualification of bidders has been completed and the wind measurement program is scheduled to begin during July 2010. This will be the first in a series of competitive bidding tenders for wind power. The EETC is considering monetization of the GHG benefits of the overall competitive bidding program including this first project through the development of a CDM program of activities. The additional sub-components to be financed by the project savings under Component A consist of: A5) A5- extension of the 220 kV network along Suez Gulf Coastal area; A6) rehabilitating five existing transmission lines which are mostly located within the Nile Delta Governorates where there is a significant amount of agricultural lands. All the routes of these OHTLs when constructed were Page 3 of 10 on barren desert, but now, four of them have been reclaimed and became agricultural lands, and the fifth is still desert owned by the government .The details these two sub-components are the following: Public Disclosure Copy A5) extension of the 220 kV network along Suez Gulf Coastal area i) Hurghada North GIS Substation and its interconnections The component includes constructing a GIS Substation with 2x125MVA, 220/66kV, 2×40 MVA 66/22 kV at North Hurghada; and its connection with the national grid through 2km 220kV and 7km 66kV Double Circuit overhead transmission lines, both as In/Out connections to North Hurghada. The substation is located in plain desert area north Hurghada City, off the OHTL of Gabal El Zeit Hurgahda South which is under construction. The total area of the land is 300 m x 300 m and the land was owned by the Governorate and the ownership was transferred to EETC. The in/out opening from the substation was observed in terms of lengths to be less than2km to be crossing the road and pass through plain desert area until it connects to transmission line of Gabal El Zeit-Hurgahda South. ii) Al-Qusair GIS Substation and its interconnections The component includes constructing a GIS Substation with 2x125MVA, 220/66kV, 2×40 MVA 66/22 kV at El-Qusair ; and its Connection with the national grid through 90km 220kV Double circuit overhead transmission line- scope details are as follows. The substation is located in plain desert area west El Qusseir City off Qeft road. The total area of the land for the substation is 225 m x 375 m and the land was owned by the Governorate and the ownership was transferred to EETC. The initial routing for the 90 km length OHTL has been determined in coordination with the Military authorities and it will be located in a distance that will vary between 500m to 3 km from the main road and inside the desert/ mountainous areas. It is quite Public Disclosure Copy unlikely that the OHTL will affect any of these residential and tourism communities. A6) Rehabilitation of the existing 232 km of Overhead Transmission Lines This will include the following five existing transmission lines i) 220kV, OHTL, Menouf/ Tahrir Badr with a length of 35Km in Alex & West Delta Zone ii) 220kV, OHTL, Menouf/ Basous with a length of 32 Km in Alex & West Delta Zone iii) 220kV, OHTL, Menouf/ Basous with a length of 45Km in the Delta Zone iv) 220kV, OHTL, El-Manayef/ Abu-Soltan with a length of 40 km in Canal Zone v) 220kV, OHTL, Suez2/ Badr with a length of 80 km in Canal Zone Around 152 km of the total 232 km targeted routes are located in agriculture land, while 80 km are desert areas. The rehabilitation of the existing OHTL will not involve any need for additional land. The process will only include temporary disturbance for the cultivation activities due to the use of the rehabilitation machines/equipment in the farms. In case damaging crops proved unavoidable, EETC will prepare a RAP/ARAP and will be paying compensation to PAPs based on the requirements of OP 4.12 on Involuntary Resettlement and the Egyptian legislations. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) TThe 250 MW wind farm will be located at Ras Gharib in the Red Sea Governorate and the Page 4 of 10 transmission line will run from Ras Gharib in the Red Sea Governorate to Samallout 500 KV substation west of Nile river in the Al-Minya Governorate. The route all along the Red Sea Governorate goes through an empty, uninhabitated, uncultivated, state- owned land area. With the Public Disclosure Copy exception of about 30-35 km near the Nile River where the 280 km 500kV double circuit east-west line would cross agricultural land, the line will go through uninhabited desert land. On the east-west route no population or human settlements were observed between the Samallout 500kV substation in Al-Minya Governorate and Ras Gharib in the Red Sea Governorate. 5. Environmental and Social Safeguards Specialists Knut Opsal (AFTCS) Chaogang Wang (MNSSU) Sanjay Srivastava (AFTN3) Africa Eshogba Olojoba (MNSEE) Amal Nabil Faltas Bastorous (MNSSU) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes Environmental Category: B - Partial Assessment BP 4.01 Based on the project scope, it was determined that the social and environmental impact are limited and the transmission line will pass through a large land tract of desert with minimal environmental and social issues. Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Public Disclosure Copy Pest Management OP 4.09 No Physical Cultural Resources OP/ No BP 4.11 Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP Yes Based on the project scope, it was determined that 4.12 the social and environmental impact are limited and the transmission line will pass through a large land tract of desert with minimal environmental and social issues. Safety of Dams OP/BP 4.37 No Projects on International No Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No 7.60 Page 5 of 10 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues Public Disclosure Copy 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts: The Environmental and Social Impact Assessment (ESIA) indicates that the proposed transmission schemes and substation are expected to be generally environmentally clean and non- polluting in nature as most of the area is characterized by uninhabited and uncultivated desert land. The anticipate environment and social impacts on the surrounding environment will be restricted to rights of way (ROW) and substations. The study presents baseline of flora and fauna known to exist in the region, particularly around Red sea and Nile valley as well analyses of alternative routes. The ESIA does not indicate presence of any sensitive habitat (mangroves, wetlands or coral reef); receptors or archeological sites within or along the proposed alignment that may be affected by the proposed project activities. The study does indicate that some part of the anticipated 500 KV transmission line route between Samallout and Suez Gulf, particularly at Jabal El-Zayt may fall under the known migratory route of birds with potential to impact migratory birds if project results in removal and destruction of surrounding vegetation near tower footings or sub stations. These impacts will be mitigated by avoiding removal or clearance of vegetation in the Jabal El- Zayt area, where strain towers will provide additional roosting and nesting platform for large raptors such as vultures and Eagles. The design of transmission lines under the project will also include providing colored markers on the transmission lines to deflect any potential birds and providing bird friendly design of towers. The ESIAstudy indicate that the impact of potential collision of birds with T- line is, however, unlikely. The study assessed current and anticipated environmental impacts during the construction phase of power transmission line including impacts on terrestrial and aquatic habitat and humans due to electric and magnetic fields and hazardous materials. Given the geographical and ecological features of the area through the proposed transmission routes as well as transmission line route Public Disclosure Copy selection based on principles of avoidance, the project environmental impacts are expected to be construction related and not significant. The Environment and Social Management Plan (ESMP) details measures to minimize environmental, health and safety impacts during planning, design, construction and supervision, including recommendations for mitigating habitat loss, vegetation damage and fragmentation; avoid inconvenience to local community due increased access to wild lands, paths/access roads; avoid run off and sedimentation from grading of access roads; fully avoid chemical contamination by using only manual maintenance techniques; avoid procuring or using PCBs in electrical equipment; mitigate the impact as a result of change in land use and population relocation due to location of towers and substations, including induced secondary development during construction; minimizing avian hazards by selecting appropriate design for transmission lines and towers; avoid impairment of cultural and aesthetic resources, health and safety, fire hazards and pollution; prevent loss of agriculture/community land by avoiding physical displacement of population, and minimize, if not avoid, displacement of population and ensure that the livelihood of those affected is improved or restored Land acquisition along the expected 280 km transmission line will be limited to compensation for areas covered by the tower footings, if located on private land and a Resettlement Policy Framework has been prepared. However with the exception of the first 30-35 km near Samallout on the Nile River which may affect agricultural areas, most of the proposed routing passes through uninhabited desert land which is owned by the State. At Samallout, 500 KV/220/132/66/33 Page 6 of 10 substation is located at the desert edge, west of Nile river. This substation will be expanded to house new equipment associated with the construction and operation of new transmission lines. No land taking or resettlement is associated with this site of substation. At Suez Gulf and Jabal Public Disclosure Copy El-Zayt, area for substation has been allocated and the land has been transferred to EETC by the local authorities of Red Sea Governorate. The area is free of encumberance and is located on uncultivated desert land. The site of the substations and the entire route of transmission line are accessible through the regional road from El-Sheikh Fadl ro R as Gareb, therefore no access road is envisaged as part of the project. Overall the social and environmental impacts of the project interventions are not significant, unprecedented or irreversible. A supplementary ESIA has been prepared to address the environmental and social impacts of the additional subcomponents, including an ESMP for management and monitoring of potential environmental and social impacts. A supplementary RPF has also been prepared to address resettlement issues. The supplementary ESIA described the baseline environmental and social conditions at the location of these subcomponents, it has indicated that two main environmental and social sensitivities could be related to the project activities: 1- Possible locations of the new OHTL in the Red Sea near birds migration corridors, this has been addressed in the ESMP through initiating a special ornithological study s before construction works, this study could be carried out in two stages: the first will include a rapid assessment to indicate if the proposed routes of the OHTLs need to be modified, then the second stage will include more detailed assessment in autumn and spring seasons to recommend certain mitigation measures to avoid birds fatalities at certain stretches of the lines. 2- Possible temporary damages to crops in the agriculture areas of the existing lines that will be rehabilitated. Around 152 km of the total 232 km targeted routes are located in agriculture land, while 80 km are desert areas. The rehabilitation of the existing OHTL will not involve any need for additional land. The process will only include temporary disturbance for the cultivation activities due to the use of the rehabilitation machines/equipment in the farms. In case damaging crops proved unavoidable, EETC will prepare a RAP/ARAP and will be paying compensation to PAPs based on the requirements of OP 4.12 on Involuntary Resettlement and the Egyptian legislations. Public Disclosure Copy The supplementary ESIA of indicated that the environmental and social impacts of the additional subcomponents are expected to be limited and could be mitigated following the measures of the ESMP. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The Bank financed project does not anticipate any indirect or long term impacts that will be adverse due to anticipated future activities. However, the area around the proposed wind generation projects to be financed by private investors will develop in future for which an environment and social impact assessment will be undertaken after establishing feasibility. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The EA studied three alternative routes and recommended the 3rd alignment, as the best option. There are three proposed routes in the green area at Samallout route segment: # The first options included alignment that would have passed close to existing housing blocks and crossing the Nile River at 600 m width, and therefore rejected. # The second option was not preferred as it passes through mining area located at the eastern side of the Nile River and constitutes a source of pollution, which may adversely affect the line Page 7 of 10 insulators, in addition to crossing the Nile River at 900m width. # The third option, which is the preferable and the selected alignment route allows the project in avoiding all housing blocks and passes far from the mining area and crosses the Nile Public Disclosure Copy River at its narrowest width, i.e. 600 m distance. The ESMP and the RPF follow the basic principles of avoidance, minimization and mitigation. As part of the EA, several alternative alignments are analyzed and choice is made on the basis of several criteria including environmental and social sensitivity of the routes. Near Samallout different options are being considered to minimize land acquisition. The supplementary ESIA studied two alternative routes for the Safaga Qussair OHTLs: # The first is to go parallel to the coastal road, # The second is to further west in the mountains The second alternative has been preferred as It will cause less visual impacts and nuisance for the users of the coastal road, less potential for interfering with future tourism or urban development and less potential for interfering with any bird routes (if exist). The supplementary ESIA has also studied two alternatives for increasing the capacity of the existing lines: # The first is constructing a parallel ACSR line # The second is replacing the existing conductors with the more capacity INVAR conductors. From the environmental and social perspective the second alternative is preferred as it will not require new ROW and it will have less impacts during the construction. 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. The Project Management Unit will have the overall responsibility for implementation of Public Disclosure Copy Environment and Social Management Plan and the RPF. The PMU will hire environmental and social specialists who will work closely with contractors and sub-contractors to ensure that all environment and social impact mitigation measures including occupation, health and safety guidelines are mainstreamed into the project design; monitored and supervised. These specialists will have direct responsibility for implementation of the Environment, Health and Safety measures as well as the RPF for the site during construction and operation. Relevant staff will be trained in identification of key environmental and social issues as well as in implementation of management, mitigation and monitoring measures, including occupational health and safety; and contingency plans and emergency procedures. This staffing arrangement will also cover the supervision and reporting on the ESMP and RPF of the additional subcomponents. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The ESIA has been consulted with the project stakeholders including the Red Sea Governorate, El Menya Governorate, NREA, EEAA, General Organization for Physical Planning, Suez Gulf Development Organization, Electric Project Services Company, different scientific and research organizations, Local People Councils, Different NGOs and general citizens. The supplementary ESIA and the RPF of the additional subcomponents have been consulted with Page 8 of 10 the local community at the locations of these Subcomponents. For the subcomponent of the rehabilitation of the existing OHTL, EETC has been consulting sample of the farmers and agriculture associations along the targeted existing OHTL. Inviting and collecting the farmers have Public Disclosure Copy been done in coordination with the agriculture associations and the interviews were mostly conducted in small discussion groups. For the 2 substations and their interconnections, EETC cooperated with the Red Sear Governorate and affiliate local units to announce for and host one public consultation in Safaga City. Diverse group of stakeholders were involved in the consultation. EETC has prepared Arabic material including brief on the projects and has distributed to the participants of the various consultation events. The content of this brief has been also verbally explained to farmers who participated in the consultation for the rehabilitation of the OHTL. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 10-Jun-2010 Date of submission to InfoShop 11-Jun-2010 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure Egypt, Arab Republic of 11-Jun-2010 Comments: Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 10-Jun-2014 Date of submission to InfoShop 11-Jun-2014 "In country" Disclosure Egypt, Arab Republic of 11-Jun-2014 Public Disclosure Copy Comments: If the project triggers the Pest Management and/or Physical Cultural Resources policies, 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 OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? If yes, then did the Regional Environment Unit or Sector Yes [ ] No [ ] NA [ ] Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/ Yes [ ] No [ ] NA [ ] process framework (as appropriate) been prepared? Page 9 of 10 If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Sector Manager review the plan? The World Bank Policy on Disclosure of Information Public Disclosure Copy Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] 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 Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader: Waleed Saleh I. Alsuraih Approved By Regional Safeguards Name: Nina Chee (RSA) Date: 13-Jun-2014 Coordinator: Public Disclosure Copy Sector Manager: Name: Charles Joseph Cormier (SM) Date: 13-Jun-2014 Page 10 of 10