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Environmental classification and rationale
The project is screened C/1, requiring an Environmental Audit of the two
distribution companies. Initial due diligence carried out by the client will
be complemented by comprehensive site audits to be completed by the end of
2005; these audits will establish the liabilities of the State of Bulgaria
with regards to environmental damages caused by former acts and omissions.
The findings of the audits will provided the basis on which an environmental
Action will be developed by the company and agreed with the Bank.
Key environmental issues and mitigation
Environmental issues
associated with electricity distribution are well understood, can be readily
identified were they occur, and mitigation measures can easily be put in place
where necessary. Issues characteristic for electricity distribution companies
include:
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occupational and public health and safety;
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storage, handling and disposal of hazardous substances (e.g. transformer oils
which may potentially include PCBs; lamps from public lighting operations;
paints and solvents);
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waste disposal associated with network rehabilitation and maintenance;
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nuisances related to the operation of maintenance depots and workshops and an
associated vehicle fleet;
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site related liabilities (e.g. localized oil contamination at transformer
substations);
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social impacts if company restructuring is involved.
Environmental opportunities
Investment plans relate to
renovation and re-enforcement of the network which is likely to reduce outages
and line losses, and to improve reliability and efficiency.
Summary of Environmental Action Plan
The company will by the
end of 2005 carry out comprehensive facility audits to establish the liability
of the State for ‘environmental damages caused by former acts or omissions’.
These audits will be the basis on which an Environmental Action Plan is to be
developed, agreed with the Bank, and subsequently implemented.
Disclosure of information and consultation
There are no formal
requirements for public information and disclosure associated with this
project. The company will, however, be encouraged to inform the public on its
activities and liase with its stakeholders.
Monitoring and reporting
The Company will monitor the
environmental impact of its operations in accordance with national law and
regulations. The Bank will evaluate the project's compliance with the
applicable environmental and social requirements during the lifetime of the
project by reviewing annual environmental reports prepared for the project and
may, if required, carry out monitoring visits.
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