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Calidda Peru

Environmental & Social Review Summary

This Environmental and Social Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.
Project number 28031
CountryPeru
SectorUtilities
DepartmentInfrastructure
Company nameGas Natural de Lima y Callao S.A.
Environmental categoryB
StatusPend PDS-IR
Date ESRS disclosedNovember 2, 2009
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OverviewCategory & Applicable StandardsKey Issues & MitigationCommunity EngagementsClient's Documentation

Overview of IFC's scope of review
IFC’s appraisal of this project consisted of a review of environmental, social, health and safety, and labor information provided by Cálidda, and site visits to Cálidda’s facilities, operations, and the proposed pipeline alignment, which were conducted by IFC’s Environmental and Social Specialists from March 2nd – 5th and from May 26th - 30th, 2009. Meetings were held with Cálidda’s management and staff, external environmental and archeological consultants, and with the corresponding government environmental agency.

Specific items reviewed include: an Operations, Maintenance, Engineering, Environmental, Health and Safety Risk Management Audit Report prepared by ERM for AEI (August, 2008); current Environmental Impact Assessments (EIAs), their amendments, and Environmental and Social Management Plans (PMA) as currently approved by the local environmental authorities; and an advanced draft dated Oct 2009 of the modified PMA customized to the new loop.
Project description
Gas Natural de Lima y Callao S.A. (“Cálidda”, or “the Company”) is the holder of a 33 year concession (extendable to a maximum of 60 years) granted by the Government of Peru (“GOP”) to build and operate the gas distribution network in Lima and Callao (“the concession area”). The Company started operations in 2004.

The Project consists of phase I of the expansion of Cálidda’s distribution network, designed to increase the distribution capacity of natural gas in the concession area from 255 to 420 million standard cubic feet per day. Total Project cost is calculated at $ 236 million, and will include: (i) the expansion and upgrades to the main grid, (ii) the expansion to the low pressure secondary grid, and (iii) refinancing of existing senior debt.

Cálidda is owned by AEI (60%) and Promigas (40%), sponsors with extensive experience in the natural gas industry. AEI is also the majority shareholder of Promigas.