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| TJH |
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| 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 | 26501 |
| Country | Jamaica |
| Sector | Transportation and Warehousing |
| Department | Infrastructure |
| Company name | Transjamaican Highway Ltd. |
| Environmental category | B |
| Status | Pending Approval |
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| Date ESRS disclosed | June 9, 2009 |
| Date revised ESRS disclosed | October 19, 2009 |
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| View Summary of Proposed Investment (SPI), click here |
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| Overview | Category & Applicable Standards | Key Issues & Mitigation | Community Engagements | Client's Documentation |
| Overview of IFC's scope of review |
Highway 2000 is the centerpiece of the multi-year Millennium Projects Programme initiated by the Government of Jamaica, and will connect the capital Kingston with the major north coast centers of Montego Bay and Ocho Rios. Highway 2000 is envisioned to serve as a catalyst for economic activities along the corridor and improve ground transportation within Jamaica. Phase 1 of Highway 2000 is being developed on a design, build, operate and transfer (“BOT”) basis by TransJamaican Highway Limited ("TJH” or the "Company"). The highway will be a four to six lane controlled-access, tolled motorway with fully grade separated interchanges and intersections built according to modern international standards. Phase 1A (section from Kingston to Sandy Bay and Portmore Causeway) was completed in phases between September 2003 and July 2006.
The Project is the extension (Phase 1B-1) from the current highway terminus at Sandy Bay, west to Four Paths, and the refinancing of an existing medium-term facility that was put in place for the financing of Phase 1A. The financing package is currently expected to be by a consortium of IFC, Inter-American Development Bank (“IDB”), Proparco, and European Investment Bank (“EIB”), with whom IFC coordinated its appraisal. IFC’s review consisted of appraising environmental, health and safety, human resources and social information provided by the company and through first-hand observation and data collection through meetings at the offices of TJH and the Jamaican implementing agency, National Road Operating & Construction Company Ltd. (“NROCC”). IFC also met with the Kingston-based EIA consultant, Environmental Solutions Ltd., regarding key issues/analyses and public consultation. Two site visits were conducted of the existing initial Phase 1A as well as the proposed new right-of-way for Phase 1B and portions of Phase 2 of Highway 2000 that are being constructed independently of the concession. IFC’s review included an assessment of labor relations, as well as interviews with senior management and human resources personnel of the highway operator, Jamaican Infrastructure Operator Ltd. Furthermore, IFC interviewed the fishermen affected by Phase 1A and other residents and business that will need to be affected or relocated in the context of Phase 1B-1 of this project and reviewed the resettlement and land acquisition framework and the public consultation undertaken by NROCC for this purpose. The ESRS has been revised to reflect additional information regarding mangrove removal and replanting and noise issues during operations. |
| Project description |
TransJamaican Highway Limited holds the concession for Phase 1 of Highway 2000 to connect the capital Kingston in the south east of Jamaica with Mandeville in the heart of the country. TJH is owned by Bouygues Travaux Publics (“Bouygues”) from France and Autoroutes du Sud de la France ("ASF") (the “Sponsors”). An affiliated company to TJH, Jamaican Infrastructure Operator Ltd. (“JIO”) is the operator of the concession, and Bouygues’ construction arm, Bouygues Travaux Publics (“BYTP”), is the prime contractor.
Phase 1A from Kingston to Sandy Bay has been completed and is already operational. Construction of Phase 1B has been subdivided into to two sections – Phase 1B-1 from Sandy Bay to Four Paths and Phase 1B-2 which will extend the toll road to Williamsfield (near Mandeville). The financing contemplated by IFC is for the expansion of the existing toll motorway west of Sandy Bay by an additional 17 km further west up to the town of Four Paths (Phase 1B-1) (2x2 lanes carriageway).
Phase 1B-1 will begin at road km 33 at Sandy Bay, and pass through rolling terrain to the south of the right-of-way of the Jamaica Railway Corporation rail line. In this area the railway line forms the northern boundary of the Portland Bight Protected Area (PBPA) and the proposed highway traverses a small section of the PBPA. An interchange will be constructed at km 41 to provide access to the community of May Pen. The alignment then crosses the Rio Minho at km 44, parallel to and just south of where the existing A2 Road crosses the river. The river crossing was selected to minimize the bridge length for the river crossing, but as a result will require the partial relocation of two existing sand and gravel quarries.
West of the Rio Minho the alignment will be constructed approximately two meters above existing ground for drainage purposes, passing through sugarcane fields, crossing several gullies, local roads, field connectors and an existing railway spur line. At km 50, the alignment connects with the existing A2 Road near Four Paths (end of the Phase 1B-1 section), shortly after a Toll Plaza. Sanitary facilities will be provided at the toll plaza. The road will be fenced along its length. Crossings (overpasses and underpasses) will be provided for main/local roads and to maintain access to properties. The local road network will remain available for persons who do not wish to use a toll highway. Construction is expected to take 24 months. Traffic enforcement will be provided by the Government of Jamaica, while breakdown services will be provided by the toll road operator. |
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| Identified applicable performance standards |
While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:
PS1: Social and Environmental Assessment and Management System;
PS2: Labor and Working Conditions;
PS3 Pollution Prevention and Abatement;
PS4: Community Health, Safety and Security; and
PS5: Land Acquisition and Involuntary Resettlement.
The following PSs are not applicable or minimally relevant. Issues relating to PS6: Biodiversity Conservation and Sustainable Natural Resources Management have been reviewed and determined to be minimally relevant. The right of way encroaches slightly through the NW portion of the Portland Bight Protected area; however, the information from the Project EIA and Strategic EIA confirm that it is an area of secondary vegetative and opportunistic growth. Although TJH could source some material from a few existing quarries located within the Portland Bight Protected area, the company had agreed to source material from several quarries outside the Portland Bight Protected Area. Additionally, the environmental permit for the Portmore Causeway included approval for mangrove removal (approximately 7 ha) from the Hunts Bay area and subsequent restoration, which seems to be successful so far, and will be monitored going forward.
No issues relating to PS7: Indigenous Peoples or PS8: Cultural Heritage have been identified in the Project EIA or Strategic EIA. |
| Environmental and social categorization and rationale |
This is a category B project according to IFC’s Environmental and Social Review Procedures. The environmental and social (E&S) impacts expected are diverse, but risks can be avoided or managed with existing and readily available standard procedures and practices. The key E&S issues identified at appraisal included freedom of association and land acquisition. |
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| Key environmental and social issues and mitigation |
The company has presented IFC with extensive information both written and through interviews on its current practices and polices that seek to address E&S risks and impacts to ensure that the proposed project currently complies with or will comply with host country laws and regulations and IFC Performance Standards on Social and Environmental Sustainability upon implementation of specific additional measures agreed upon with the IDB, such as the implementation of the resettlement plan including completion of the resettlement of fishermen and vendors on the Portmore Causeway, development and implementation of a mangrove monitoring plan and noise monitoring and mitigation measures.
>> PS1: Social and Environmental Assessment and Management System
The Project is a component of Highway 2000, a Government of Jamaica (“GOJ”) proposal to build a multilane, limited access highway to link major towns with the capital Kingston. Originally, the project was conceived through the Agricultural Credit Bank of Jamaica, now the Development Bank of Jamaica, who commissioned a Strategic Environmental Assessment (SEA) to guide the design of the highway. These implementation responsibilities have since been taken over by NROCC. The SEA, completed in June 2000 by the Canadian consulting firm Dessau Soprin, analyzed six corridors in deriving the current alignment as the preferred route. Factors considered in the analysis included the location of population centers, environmentally sensitive and protected areas, and terrain. Six alternatives were considered, and the alignment chosen minimizes environmental disruption and the need for relocation of residents and businesses.
The SEA provided guidelines for design and alignment within the context of a 1 km corridor, and recommended issues and areas for further study in detailed project-level EIAs. As the concessionaire for Highway 2000, TJH is required to prepare an environmental impact assessment for each phase/subphase of work. TJH’s consultant initiated work on the EIA for Phase 1B in early 2007. The analysis built on the experience of the design, construction, and operation of earlier segments of Highway 2000. Issues identified from past experience and during consultation and for which mitigation was presented in the EIA included drainage and flooding; slope stability in roadway cut and fill areas; air quality; noise; habitat modifications; parks and protected areas management; locations of toll plazas, highway entrances/exits, and crossings; waste management; and land acquisition and resettlement. The final EIA report was submitted in September 2007 and an environmental permit was granted, based on this EIA, by NEPA in January 2008.
TJH’s role in the design, construction, and operation of the concession is that of program manager. The Operator, JIO, has implemented a Quality, Safety & Environmental (“QSE”) program that satisfies IFC’s requirements under PS1. The operations and procedures were recently audited in line with ISO 9001:2000 for Quality and 14001:2004 Environmental standards, and certification was obtained. TJH submits detailed reports to NROCC on a monthly basis that include Quality Assurance/Quality Control management and any non-conformances experienced; traffic data; accident statistics and reports, environmental issues, including corrective actions taken; comments from customers; and performance indicators.
>> PS2: Labor and Working Conditions
TJH currently has only a few, headquarters-level employees and its Human Resource Policy and Management is under Bouygues TP SA and Autoroutes du Sud de la France SA. TJH will require the design and construction contractor, BYTP, to meet the requirements under PS2 Labor and Working Conditions. IFC appraised the JIO’s Human Resource Policies and Management.
JIO directly employs most management and administrative personnel, and outsources the toll collection and maintenance functions. The total number of employee and contractor personnel at JIO is about 160, who, with the exception of the General Manager who is an expatriate, are Jamaicans. Women are represented in JIO’s senior management. 75% of toll collectors employed by the subcontractor are women which is not unusual in the service sector in Jamaica.
JIO has well-conceived and documented HR policies and procedures, which are also required of its contractors. JIO’s employee handbook covers aspects of working hours and overtime, holiday, sick and annual leave, jury duty and voting time off, health insurance and other benefits, training plan, performance evaluation, employees’ and employers’ responsibilities, disciplinary practices, grievance mechanism, and safety and sexual harassment. The handbook is readily available to all employees. The Policy and Procedures are communicated to employees during training and through an employment contract. The minimum age of employment is 18 years and national identification as well as police record verification is undertaken. Normal working hours are 40 per week based on a 5 day working schedule. Overtime is paid at 1.5 after 40.5 hours and holidays are double pay. JIO wages and benefit compensation is above industry standards. Turnover rate is very low (less than 1%). The company promotes within, and provides training opportunities (i.e. English, mathematics, accounting, and high school degree) based on needs identified during performance evaluations.
National Law recognizes worker’s rights to join a union and to bargain collectively. The union representing some JIO workers is University and Allied Worker’s Union. In the past most of the toll road operators were part of the union and currently only a few remain. The relationship between the Union and JIO management has been strained over the past few years as a result of several aggressive disputes. In August 2008, a settlement was awarded to the Union by the courts increasing the benefits of toll road operators. In May 2008, JIO revamped its labor strategy to subcontracting model for the required labor for the toll operation and by doing so shifted potential union interaction to the subcontractor. As a consequence, Toll Road operators were made redundant and approximately 90% were rehired by the subcontractor. JIO followed due process to ensure that redundancy took place in accordance to the Jamaican Labor Law. The staff hired through the subcontractor has increased wages and benefits compared to when employed directly by JIO due to the settlement award.
As most employees are not unionized, IFC recommended to management that JIO reinforce its support for freedom of association by taking the following action:
>> JIO explicitly stated in the Employment Handbook that Freedom of Association is supported by management. A copy of the revised handbook was distributed to all employees. In addition to an already good grievance mechanism in place, staff will elect (through a voting system) a worker’s representative (one each for the contractors and for JIO direct employees) who will serve as liaisons with management. JIO will facilitate this process, and JIO along with its subcontractor will ensure that Unions are not discouraged to interact with JIO employees (direct or contracted) as long as it is not disruptive to employees’ work.
The company has a comprehensive grievance mechanism. Employees can express their grievances through (i) their direct supervisor, (ii) Human Resources (there is conflict resolution process outlined in the employee handbook), (iii) the Union for those employees that are unionized, (iv) Management Team, and (v) suggestion box.
JIO requires that contractors complete and sign a Quality Form-Supplier Evaluation that encompass quality system, procurement practices, material control, training and material datasheet.
>> PS3: Pollution Prevention and Abatement
Bouygues construction arm, BYTP, will design and construct all of Phase 1B, and obtain all permits and approvals, with the exception of the NEPA Permit which is the responsibility of TJH and was obtained in January 2008. BYTP is required by its contract to execute the construction in accordance with environmental protection regulations of the GOJ and to implement an Environmental Management Plan and monitoring program based on the mitigation measures in the EIA and permits.
Noise has been identified as a potential issue for few houses located in the edge of the road’s right of way in some section of the road. The Company has in place a noise monitoring and mitigation plan for equipment and construction processes. Additional studies will be conducted to determine potential impacts on sensitive receptors during operations and, if required, define mitigation measures accordingly.
>> PS4: Community Health, Safety, and Security
Flooding has repeatedly been identified during EIA consultation as a concern of local communities. JIO has in place mitigation measures to reduce flooding and a hurricane preparedness plan that includes radio announcement on toll road operation hours and staff security. Unarmed Patrol guards make rounds to provide road side assistance or call for help (except during hurricanes – in this occasions, one office is on duty in each toll plaza, but there is no patrol officer on the toll road). Storm water management is surveyed bi-annually to identify any defects in drainage networks. The toll road will be fenced on both sides to ensure community safety. Furthermore, regular overpasses and other crossings will be available to ensure pedestrian safety. Emergency preparedness and response in order to provide timely first aid response in the event of accident and hazardous material spills is included in QSE Program. Accident and fatality rate of automobilists is tracked by JIO, and JIO provides annual safety training for toll road users. In addition, grievances can be expressed through completing a form that is available at each toll collection booth, calling the toll authority which is committed to respond within 24 hrs. Issues that cannot be resolved are escalated to senior management.
>> PS5: Land Acquisition and Involuntary Resettlement
The current alignment considered is the outcome of the Strategic EIA which assessed a 1 km wide corridor to identify the best alignment for Highway 2000 project while minimizing environmental and social impacts. As currently configured, Phase 1B-1 involves the acquisition of 139 parcels of land totaling 170 hectares over a distance of 17 km. Approximately 84 persons will be resettled and 34 parcels with structures (39 structures) affected by the acquisition. The land acquisition process is managed by the National Road Operating and Construction Company Limited (NROCC), which is a special purpose governmental organization created in 2001 to act as the implementing agency for the management of the land acquisition process as well as other services. NROCC has contracted independent chartered valuation surveyors to handle the notification, detailed inspection, and valuation and negotiation process for households and farmlands while it focuses on the larger commercial entities.
IFC assessed the ongoing land acquisition and resettlement process and, together with IDB, provided guidance to NROCC for the preparation of a Resettlement Action Plan (RAP) based on the Jamaican Land Acquisition Act of 1947, IFC’s Performance Standard 5 and IDB’s Resettlement Policy. The RAP (attached) documents all project-related activities to-date; defines the procedures, principles and criteria for ongoing resettlement activities; and serves as a framework for future interventions by NROCC.
All persons affected will be consulted and given the opportunity to participate in the planning and implementation of their own resettlement. Assistance will be provided in helping individuals to restore their standard of living or even to raise them, but no individual should suffer a lowering of their standard of living as a consequence of the project. Particular attention will be given to groups such as the elderly, those living below the poverty line, women and children, and those without land tenure.
Assistance and compensation eligibility is based on the following categories of ownership and title status: informal settlers/squatters; informal purchasers/family lands; registered owners; tenants/tenant farmers; and businesses. Compensation will be prompt, effective and at full replacement cost for losses such as lands, structures, crops, trees, businesses and incomes lost. In accordance with the size of the affected lot, NROCC will either acquire the total lot or compensate the owner for that portion of land and other assets that will be affected.
NROCC engages continuously with the communities along the Sub-Phase 1B-1alignment. During initial meetings the project’s impacts as well as suggestions from the communities on how impacts can be mitigated were discussed. These initial meetings were followed by smaller group meetings in the field to discuss specific issues of concern from the community or affected persons. To mitigate any negative perceptions and to keep the affected communities involved NROCC will create local offices where the affected communities can go and obtain responses to any concerns through the grievance redress mechanism and obtain current information.
The acquisition of 117 parcels and resettlement of 41 people required for the construction of Phase 1A was completed in 2006. During the same process 74 fishermen (Boat Owners) and 23 vendors located on both sides of the Portmore Causeway were relocated by NROCC on temporary facilities in the Kingston Harbor side of the new highway. In discussions with the fishermen and vendors it was agreed that a new and permanent “Fishing Village” with access to the beach and road traffic would be built to include 81 storage units for the fishermen and 23 stalls for the vendors. Works on these new facilities commenced in 2008 and they are now substantially completed with the exception of dredging works which started the last week of April 2009 and are expected to be completed by August 2009. A more detailed review on the relocation of the fisherfolks is discussed in the attached report entitled “Relocation for Portmore Causeway Fishing Village” dated 2008.
NROCC has included follow-up monitoring and evaluation procedures in the RAP and will engage an independent third party audit that will enable NROCC to assess the socio-economic outcome of the land acquisition and resettlement process and verify that livelihoods of the affected persons and businesses were restored. TJH has agreed to actively collaborate with NROCC to achieve outcomes that are consistent with the objectives of IFC’s PS5. |
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| Client's community engagement |
As the concessionaire for Highway 2000 TJH is required to prepare an environmental impact assessment for each Phase. Jamaican agencies provide guidance on conducting EIAs and public consultation. The public consultation process for Phase 1B included individual stakeholder meetings and interviews with over 300 persons in 20 communities; meetings with Government of Jamaica agencies and public and private sector stakeholders; information sharing with and requests to NGOs in particular the Caribbean Coastal Area Management Foundation (“CCAM”) the co-managers of the Portland Bight Protected Area; meetings with Parish Councils in Manchester and Clarendon; public notification of the national newspaper; and public consultation/presentation meetings at the initiation of the EIA process. Once the EIA was completed, two public presentations were made of the findings.
Going forward, community engagement during the operation phase is mainly the responsibility of the operator, JIO. JIO has a sustainable development program that through outreach actions provides skills training workshops targeted mostly to unemployed youth and provides jobs within communities surrounding the toll road through casual employment (grass cutters, sweepers). Employment is done on a community rotation basis so that the various communities along the toll road can equally benefit from job opportunities. JIO also provides financial support to various organizations involved with social outreach programs. |
| Local access of project documentation |
Inquiries about the project can be directed to:
Guillaume Dubois
General Manager
TransJamaican Highway Ltd
8 Olivier Road Kingston 8 Jamaica, W.I.
Tel: +1 (876) 925 62 22
Fax: +1 (876) 969 37 30
E-mail: g.dubois@h2k-tjh.com
The Strategic EIA and other technical reports for Highway 2000 can be viewed on the website of the National Road Operating & Construction Company Ltd at: www.h2kjamaica.com
The Environmental Impact Assessment prepared in September 2007 for Phase 1B of Highway 2000:
>> can be viewed on the website of the National Environment and Planning Agency (NEPA) at: www.nepa.gov.jm ;
>> is available at the following locations:
Manchester and Clarendon Parish Libraries;
Manchester and Clarendon Parish Councils Offices;
NEPA documentation center. |
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| Availability of Full Documentation |
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| Information Disclosed |
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