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Project screening
Screened B/1. Following an Initial Environmental Examination (IEE) the project has been screened B/1 requiring an environmental audit of existing assets to assess current environmental status and an environmental analysis to ascertain whether the investment programme will allow the plant to meet EU environmental standard
Summary or Environmental and Social Due diligence undertaken and key findings
Following the IEE of the Bank an independent consultant was retained to undertake the environmental and social due diligence of the power plant complex and the associated lignite mines. The independent environmental and social due diligence confirmed that the project is structured to meet EU environmental standards and will result in significant environmental benefits in terms of reducing environmental emissions notably sulphur dioxide (SO2) and allow the plant to meet EU Large Combustion Plant standards and requirements of EU Accession Treaty.
The planned installation of Flue Gas Desulphurisation (FGD) on Units 3 to 6 and the rehabilitation and upgrade of the nitrous oxide (NOx) control for Units 4 and 5, will allow the plant to meet EU complaint emissions standards. The plant will meet among other requirements the more stringent NOx level emission post 2016 (200 mg/Nm3). This has been confirmed as part of the environmental and technical due diligence undertaken by the Bank.
The future transport of limestone to the plant may have some environmental and social impacts. The plant will continuously monitor the situation and assess alternative limestone suppliers and transport routes. A review will be made in 2013 to assess the impact of the adopted solution for limestone transport. The Company will use, among others, environmental and social criteria in the assessment of transport mode solution.
Continued environmental authorisation of the TPP is contingent on improvements being made to the site (the current IPPC permit expires in 2013). There are plans by the Company to bring about the extension of the Ash Pond at Valea Ceplea to allow it to take ash deposits through to 2012 and then it will be subject to a conservation process. The plant is investing in the development of a dense ash transport system and the development of a new ash pond adjacent to Ash Pond Number 2. Ash Pond Number 2 will be, in part, covered by the new development. This should allow better management of the transport water and create a landfill in-line with the EU Landfill Directive design parameters. It should reduce the risk of Valea Ceplea causing harm to the local environment.
Lignite mining operations are being carried out in a generally satisfactory manner but the management of surface waters in and adjacent to the mining pits and overburden dump are in need of improvement, particularly as this may lead to some instability of parts of the overburden dump.
Turceni needs to extend the mining areas both within its current exploitation licence area and into the wider area of the licensed reserve. There are a few legacy issues associated with previous resettlement and with acquiring land for the extension into the existing exploitation area (mainly to do with finance and appropriate incentives), with the main social issues likely to arise in ten to fifteen years time when development of the wider area is needed. These include issues relating to resettlement of households and the removal of a church and of a graveyard.
Clear and very complete guidance in relation to resettlement and compensation has been adopted in September 2005 for the mine sector and a Ministry of Economy and Commerce Order has been issued for approval in October 2005. This takes account of many previous experiences and provides formal templates for all aspects of the process, including inventories of land, crops, houses and other building, their construction and fittings, formal documentary agreements by asset category for transfer and for development of compensatory assets. The guidance improved the resettlement process. The Bank has reviewed this as part of the due diligence and provided additional guidance on the social and resettlement action plan to enable best practice to be met, including in the implementation of an appropriate grievance procedure.
The environmental and social action plan (ESAP) was agreed with the company, and it includes specific measures for implementing the investment programme at the company in terms of the planned modernization and attained LCPD and IPPC standards for the plant. In addition the ESAP addresses a number of managerial issues, such as environmental and health and safety management systems and social issues associated with the planned mine expansions, notably future resettlement plans
The Bank will monitoring the progress of implementation of the ESAP, and is investigating ways of helping the Company with the social and resettlement issues through technical assistance funding.
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