LNG

7/2/2014
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Peru LNG
ENVIRONMENTAL & SOCIAL REVIEW SUMMARY
This Environm e ntal and Social R e vie w Sum m ary is pre pare d and distribute d in advance of the IFC Board of Dire ctors
conside ration of the propose d transaction. Its purpose is to e nhance the transpare ncy of IFC s activitie s, and this
docum e nt should not be construe d as pre sum ing the outcom e of the Board of Dire ctors de cision. Board date s are
e stim ate s only.
Any docum e ntation which is attache d to this Environm e ntal and Social R e vie w Sum m ary has be e n pre pare d by the proje ct
sponsor and authorization has be e n give n for public re le ase . IFC has re vie we d this docum e ntation and conside rs that it
is of ade quate quality to be re le ase d to the public but doe s not e ndorse the conte nt.
Project num ber
25390
Country
Peru
Region
Latin America and the Caribbean
Sector
Oil and Gas Production (Includes Development)
Departm ent
Reg Ind, Infra & Nat Res, CAF/CLA
Com pany nam e
Peru LNG
Environm ental category
Date ESRS disclosed
November 5, 2007
Last Updated Date
July 1, 2014
Status
Active
Previous Events
Invested: November 14, 2008

Signed: June 26, 2008
Approved: January 31, 2008
Overview of IFC's scope of review

The review of the PERU LNG Project consisted of a pre-appraisal mission in September 2006 to the project natural gas
liquefaction plant site (LNG Plant), the pipeline right of way (RoW), as well as the Upstream and Downstream Facilities
(Block 88, Block 56, the Malvinas Gas Separation Plant, Transportadora de Gas del Peru (TgP) pipeline, and the Pisco
Fractionation Plant). The appraisal mission was completed in four different trips, the first in May 2007 to the plant site
and to the pipeline RoW; a second trip to visit the Upstream and Downstream facilities in June 2007; a third trip to visit
Upstream facilities in September 2007; and a fourth trip to visit the pipeline RoW in October 2007. The document
review included the Projects technical, environmental and social reports and records and environmental and social
management plans. Additional information was obtained from interviews with key personnel of PERU LNG and a range
of representatives of communities affected and local NGOs. As part of the on-going due diligence process an
independent environmental and social monitoring program is being carried out to verify compliance of the company
with the project environmental and social commitments. This independent environmental and social monitoring
program started in September 2007.
Project description
The project involves the construction and operation of a LNG Plant and export facility on the Peruvian coast, which
includes a marine terminal, breakwater, and temporary rock quarry. Also, a new 34 inch diameter transportation
pipeline will be constructed to bring feed natural gas to the LNG Plant. The pipeline will be approximately 408
kilometers (km) in length, stretching from the C hiquintirca community in the Ayacucho Region of the Andes mountains
to the LNG Plant at Pampa Melchorita on the coast. A more detailed description of the Projects components is provided
as follows.
The LNG Plant is located at Pampa Melchorita on the Pacific coast near San Vicente de C aete, 169 km south of Lima.
Liquefied natural gas (LNG) is produced when natural gas is cooled to minus 163 C elsius (C ) at atmospheric pressure.
LNG occupies approximately 1/600 of the equivalent volume of natural gas, which facilitates the storage and transport
of bulk LNG using specialized ships.
The life span of the plant will be a minimum of 30 years and may be significantly extended depending on the operation
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and maintenance conditions. The plant site has space allocated for a potential expansion by adding a second train.
The liquefaction train uses the propane pre-cooled multi-component refrigerant liquefaction technology which is a
widely adopted technology.
The plant with a nominal capacity of 4.4 million metric tonnes per year (MMTY) will be comprised of the following
process areas:
Feed gas receiving, liquid separation, gas metering and pressure reduction - The Feed gas Receiving Unit (FRU) will be
designed to separate and store any liquids that might remain in the natural gas supply pipeline after initial hydrostatic
testing operations. An Inlet Knock Out (KO) Drum will remove any free liquids that collect in the pipeline.
Removal of carbon dioxide and water from the feed gas -The Acid Gas Removal Unit will remove carbon dioxide from
the natural gas as it arrives from the FRU. C arbon dioxide is removed because it would freeze in the cryogenic process
of converting gaseous methane to liquid methane, blocking the process flow. The technology for removing acid gas
from natural gas uses activated Methyl Diethanolamine (aMDEA), a tertiary amine.
Gas dehydration and carbon adsorption units - The Dehydration Unit removes water from the natural gas. The unit
uses a three-bed molecular sieve configuration two beds operating in the adsorption mode while the third bed is
undergoing regeneration. Each molecular sieve bed is regenerated every 24 hours. The Dehydration Unit dries the
natural gas until it contains less than one part per million (by volume) of water to prevent gas hydrates from freezing
and plugging in the cryogenic liquefaction unit. An Activated C arbon Adsorber will be provided as a safety measure to
ensure the removal of any heavy metals present in the feed gas. Heavy metal could cause corrosion problems in the
aluminum components of the liquefaction process equipment.
Facilities for refrigeration and liquefaction - The refrigerant process employed uses two types of refrigeration cycles to
pre-cool and liquefy the feed gas. The feed gas is first pre-cooled using propane refrigerant at four different
descending pressure and temperature levels. After pre-cooling, the feed gas enters the main cryogenic heat
exchanger (MC HE). In the MC HE, the feed gas is further cooled and totally condensed by the mixed refrigerant (MR).
The pressure of the LNG leaving the MC HE is reduced by a control valve and is then sent to the LNG storage tanks.
LNG enters the storage tanks at 1.08 bar pressure and minus 163.1 C .
LNG and refrigerant storage - Each of the two single containment LNG storage tanks has a capacity of 130,000 cubic
meters (m). The tanks will have a common secondary containment area, as required by National Fire Protection
Association (NFPA) standard 59A, which Peruvian regulations follow.
Propane and ethylene for refrigerant make-up will each be stored in horizontal, bullet-type storage tanks. Two
pressurized propane bullets will have a combined storage capacity of 602 m. Two pressurized and vacuum-jacketinsulated ethylene bullets will have a combined storage capacity of 230 m.
Utilities and infrastructure - The plant will be self sufficient for its water and electricity requirements. Natural gas
powered turbine generators will provide electric power and a desalination plant will provide process and potable water.
During the first year of construction (Phase 1), while the desalination plant is being built, water from the lower reaches
of the C aete River or other sources will be used to control dust that could be generated during ground preparation.
Additionally, fire fighting, flare, and venting systems will provide the necessary safety protection in case of a plant
upset or emergency during start-up and operation.
Trestle - A trestle will be constructed, extending perpendicularly from the shore to the LNG loading platform. The
trestle is approximately 1.35 km long and will consist of a steel superstructure supported by steel piles and a concrete
abutment. As an aid for the construction of the breakwater, a rock load-out jetty will be built approximately midway
along the trestle for use of loading barges with rock material. The dock face of the rock loadout jetty is 127 meters
long. The rock load-out jetty will remain in place following construction and will be used for as a berthing area for the
tugboats.
Breakwater - Because the Peruvian coastline is exposed to long period Pacific swells during parts of the year, a
breakwater will provide for safe berthing of LNG vessels and will allow the marine facilities to remain accessible yearround for a continuous supply of LNG. As designed, the breakwater will be situated in a depth of approximately 14
meters of water and aligned parallel to the coastline and the sea bottom contours. The length of the breakwater that is
visible above water is 800m. Also, a crest elevation of 11 meters above mean low water spring tide will provide
protection at the LNG berth from the 100 year design wave with no structural damage to the breakwater while
minimizing overtopping.
Navigational Access C hannel for LNG Tankers - A navigational channel will be dredged to provide access in and out of
the berth area for the LNG tankers. The entrance channel and egress channel and where the LNG carriers make turns
outside the protection of the breakwater will be dredged to -18 meters. The LNG berth area which is approximately 250
meter wide and 500 meter long is dredged to -15 meters.
LNG Tanker Berth and LNG Loading Arms - The LNG berth structures will consist of a 30 meter by 20 meter loading
platform, four breasting dolphins, and six mooring dolphins. The dolphin structures will consist of open grid decks on
beams supported by piles driven through jackets. LNG loading will be accomplished by using four 16 inch specialty
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pipe-and-swivel LNG loading arms. Three arms will normally be used for LNG loading and one will be used to return
vapor to the plant's Boil-Off Gas (BOG) C ompressors. A gangway is provided for access to and from the LNG ships.
Utility Dock - A small utility dock will be provided on the north side of the trestle approximately 90 meters from the
loading platform. The utility dock will contain a local control room for the loading dock, be used to berth tugs
temporarily, to support seawater intake equipment, and to provide a working area for a mobile crane to support
routine maintenance and tug supply operations. The Rock Load-out Facilities will also have the facilities and equipment
required for spill containment.
The quarry As stated above, in order to operate the marine facilities safely, it is necessary to build a breakwater for
protection of LNG tankers. The quarry site to supply rock for the breakwater was identified through an alternative
analysis process and it is nearby the LNG Plant. The selected site is called GNL-2 and will consist of a quarry and its 25
km long access road. The volume of rock required is estimated as 3.4 million metric tons for which a total of 7.6
million metric tonnes (including overburden and waste rock) will need to be quarried. The access road is located on
land that belongs to the Ministry of Agriculture which has issued the access road permit. No villages are close to the
quarry, the nearest being 7 km away. The area of influence is a desert and semi-desert zone with scarce xerophytic
vegetation. The overall Project construction is estimated to last 2 years (4 months for development of the quarry and
its facilities, 18 months for quarrying, and approximately 2 months for the decommissioning phase).
The new pipeline - The transportation of natural gas for the liquefaction plant will be through the existing C amiseaLima Pipeline Transportation System (PTS) up to kilometer post (kp) 211 at Huayahura. From this point, a 408 km long
34 inch diameter pipeline will be constructed and operated by PERU LNG to provide the required natural gas to the
plant. The pipeline will be designed to transport 677 million standard cubic feet per day (MMSC FD) of natural gas at a
pressure of 147 barg (2,160 psig). The natural gas pipeline will be buried for its 408 km length and will include surface
installations such as mainline valves, scraper traps, and a pressure reduction station. The burial depth is variable
between 1 to 2 meters depending on the sensitivity of the location and the RoW will be 25 meters wide during
construction and will be reduced to 20 meters for the operations phase. The route crosses 13 districts in 5 provinces
that belong to 2 departments (Ica and Lima). The population of settlements near the RoW is approximately 22,400
inhabitants.
Approximately 300 of the 402 km of the horizontal path of the PERU LNG pipeline will traverse the Andes mountains at
altitudes ranging from 1,500 to more than 5,000 meters above mean sea level. The regional climate along the new
pipeline path is extremely variable including hot, temperate, cold, and very cold climates; as well as conditions that
are arid, semiarid, sub-humid, humid, and very humid. The coastal region is very homogenous, covering the area
between 1,500 meters above mean sea level and the littoral zone, all of which is a desert landscape.
The pipeline will receive high-pressure natural gas from the Malvinas Gas Separation Plant during operation. The
pressure differentials between the Malvinas Gas Separation Plant and the LNG plant will allow the natural gas to reach
the delivery point.
Upstream Facilities: The Project receives its natural gas supplies from the separate C amisea natural gas liquids (NGL)
and natural gas Project (the C amisea Project) which has been in operation since 2004. The C amisea Project consists
of Blocks 88 and 56, a separation facility at Malvinas (the Malvinas Gas Separation Plant) in the Amazon rainforest, as
well as NGL and natural gas pipelines from the blocks to the C amisea fractionation plant on the coast at Pisco and to
Lima. A more detailed description of the upstream facilities and its environmental and social assessment is available at
the end of this report.
Projects C urrent Status
At the LNG Plant site all earth movements, clearing, grading, and leveling activities have been completed and concrete
foundations for the LNG tanks is in progress. The camp facilities, offices, and main warehouse are finished. The marine
facilities construction activities for the abutment are complete including the placement of the riprap on the abutment
tsunami run up slope. Quarry access road clearing is complete and the road surface grading is in progress. In respect
of the pipeline, the engineering is almost finished and the start-up of the pipelines construction is planned for January
2008.
Identified applicable performance standards

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:
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Performance
Performance
Performance
Performance
Performance
Performance
Performance
Performance
Standard
Standard
Standard
Standard
Standard
Standard
Standard
Standard
1:
2:
3:
4:
5:
6:
7:
8:
Social and Environmental Assessment and Management Systems

Labor and Working C onditions
Pollution Prevention and Abatement
C ommunity Health, Safety and Security
Land Acquisition and Involuntary Resettlement
Biodiversity C onservation and Sustainable Natural Resources Management
Indigenous peoples
C ultural Heritage
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Environmental and social categorization and rationale

The Peru LNG project including the construction and operation of an LNG plant, marine facilities, a quarry and a gas
pipeline, is a category A project according to IFC s Procedure for Environmental and Social Review of Projects because
there are potential significant adverse social and environmental impacts that may be diverse and irreversible. The IFC
made this categorization based on:
-
Site visits to the proposed project areas;

Meetings with management and key staff from the borrower;
Meetings with communities impacted by the project; and
Review of environmental and social documentation.
Through this assessment the IFC has been able to assess the magnitude of the potential impacts and it is considered
that the environmental and social impacts from the project will be addressed by the company upon the implementation
of the management plans and the mitigation measures described below.
Key environmental and social issues and mitigation

Key environmental and social issues relating to the project are summarized below along with specific information on
how potential impacts will be addressed by the company. Upon implementation of the mitigation measures described
below and in the attached Action Plans, the project will comply with environmental and social requirements, namely the
laws and regulations of Peru, IFC s Policy and Performance Standards on Social and Environmental Sustainability and
applicable World Bank/IFC environment, health and safety guidelines.
Performance Standard 1 Social and Environmental Assessment and Management System:
Environmental and Social Impact Assessments (ESIA)
The technical studies for the Project started with the Analysis of Alternatives (2001) and the Basic Engineering (2002).
Based on these documents the company started the ESIA studies in 2002.
LNG Plants ESIA: The ESIA for the Plant and the adjacent marine facilities was completed in July 2003 and approved
by Peruvian authorities in August 2004 after two rounds of observations and feedback. The public consultations were
carried out in three phases: a) during the baseline studies (May-November 2002); b) during the assessment of the E&S
impacts and for the management plan (April 2003); and c) once the final report was ready (August-September 2003).
After modifications to the Basic Engineering during 2004 and 2005, a complementary ESIA study was presented to the
authorities in November of 2005 and a new round of consultation with stakeholders was carried out. As a result an
amended ESIA was approved in September 2006.
The current site for the Plant and the adjacent marine facilities was selected after an extensive alternatives analysis
which included 17 different locations between the cities of Lima and Pisco. The main criteria applied to screen the
potential coastal sites were:
-
Minimum of 100 hectares (ha) of land space available;

Avoidance of locations of high degree of environmental sensitivity;
Avoidance of densely populated areas;
A minimum site elevation of 20 meters above mean sea level, to mitigate tsunami effects;
Exclusion of areas with potential for soil liquefaction, soil instability or nearby faulting to minimize seismic impacts;
Exclusion of marine areas where intensive dredging will be required;
Preference of areas with oceanic conditions suitable for reliable tanker berthing operations; and
Preference of locations relatively close to commercial centers that can provide raw materials and labor.
Three sites were pre-selected for further studies. The first one Punta C orriente (122 km south of Lima) was discarded
for the limited space availability and for being in a heavily developed area. The second one Pampa C larita (154 km
south of Lima) was considered unsuitable because of poor soil foundation conditions and the high potential for some
significant archaeological sites. The third one Pampa Melchorita (170 km south of Lima) was the preferred site even
though the site is 135 meters above mean sea level and required additional earth movement for road coastal access.
This portion of the Project is located along the central coastline of Peru which is a known seismically active region that
could also be affected by tsunamis. However, the high topographical location above sea level will keep the plant
facilities safe from wash-out effects. The bathymetric conditions for the siting of marine facilities are reported to be
exceptionally uniform with a relatively horizontal seafloor and therefore considered optimum for the project.
Quarrys ESIA:
The company completed an ESIA for the quarry in April 2005, which includes the quarry location and development
activities, construction of an access road and the transportation of the rock material for the marine facilities
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construction. Following two sets of observations from the Ministry of Energy and Mines (MEM), the Ministry approved
the ESIA in June 2006.
The alternatives analysis identified four potential sites for the quarry location:
a) GNL and GNL-2 located relatively close to the future LNG Plant in the Department of Lima;
b) Los Molinos located 150 km south east of LNG Plant;
c) El Sol-Punta Olleros 200 km south of the LNG Plant; and
d) Jatun in the desert valley of the Rio Seco (Department of Ica).
This analysis concluded that only GNL-GNL2 and Jatun were suitable locations. Further analysis demonstrated that the
GNL-2 site was the best environmental, social, technical and cost-effective option because:
a) its relative proximity to the plant site will reduce transport distance, improving costs and safety;
b) it is 7 km away from the closest community and thus blasting noise impacts are limited;
c) potential impacts on groundwater are minimal, if any; and
d) impacts on local fauna will be temporary and reversible and will be minimized through the implementation of the
environmental management plans.
A 25 km long access road is being constructed to access the GNL-2 site. The quarry development will be done by
surface mining including grading, drilling, blasting, loading, and transportation activities.
PERU LNG Pipelines ESIA: In May 2004 the company completed a preliminary study on the pipeline corridor
alternatives analysis which addressed four key areas: biological sensitivity, geomorphology, archaeology and social
issues. The assessment compared two corridors as follows:
(i) following the direct route (between Huayahura or pipeline kp0 and Melchorita); and
(ii) the parallel route that approximately follows the route of the RoW of the existing TgP pipeline.
The study showed that the corridor with the fewest impacts on the environment was the parallel route, as it uses the
same RoW and much of the existing infrastructure (roads, yards, camps, etc.) as the pre-existing pipeline. The
alternative analysis was revisited for the ESIA (November 2005) and alternative routes within the parallel corridor
were further assessed. An optimized route minimizing river crossings, Andean wetland crossings, and archaeological
site impacts was selected. The MEM approved the ESIA after PERU LNG addressed all the ESIA observations in
September of 2006.
The above mentioned ESIA fulfilled the local legislation requirements and were thus approved. However, their scope
does not fully address the requirements of the IFC s Performance Standards; therefore, supplemental reports and
management plans were prepared by the company. These supplementary documents called SLIP (supplementary
lenders information package) were issued as follows: LNG Plant and Marine facilities SLIP was issued in June 2007,
Pipeline SLIP was issued in June 2007, and Quarry SLIP was issued in July 2006. The ESIA and the SLIPs are publicly
accessible at the PERU LNG webpage
(http://w w w .perulng.com).
C umulative Effects Assessment:
A C umulative Effects Assessment (C EA) was prepared by the company in August 2007. The assessment describes the
potential cumulative effects directly related to the PERU LNG Project within its area of influence, and the potential
cumulative effects driven by induced actions in the Upstream Projects (Block 56 and the Malvinas Gas Separation Plant
and expansion).
- C EA in the Projects area of influence:
The projects area of influence is defined as the area that extends approximately 20 km to either side of the
pipeline,including the LNG Plant, the marine facilities, and the quarry. It also covers the area occupied by the existing
TgP pipeline, in those places where both pipelines RoWs are less than 20 km apart.
In order to assess the interactions with other projects in the PERU LNGs area of influence the project company
reviewed more than 2,000 plans, programs, and projects in the Departments of Ayacucho, Huancavelica, Ica, and
Lima. A total of 35 of those projects were identified as potentially relevant and thus further assessed. The assessment
concluded that only four of those are likely to have any interaction with the pipeline, but none of them could result in
medium to long term adverse cumulative impacts.
The C EA concludes that no significant adverse cumulative effects are likely in relation to the PERU LNG Project due to
the lack of significant interactions with third party projects. However, from a regional and national perspective, the
PERU LNG Project is expected to have a net positive cumulative impact as a result of a combination of factors: tax
revenues, royalties, job creation, and export revenues. The regional significance of the job creation opportunities, and
any inward investment resulting from linkage and additionality programs or other sources could serve as an important
stimulus given the depressed socio-economic condition of the area.
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The TgP pipeline is the most relevant project in terms of interactions with the PERU LNG pipeline. The C EA identified
four main aspects of interactions, namely: erosion and sedimentation, sensitive ecosystems, visual impact, and
impacts on social resources. Of particular concern are the potential impacts along the pipeline in areas of bofedales
or peat bogs, which are critical habitats. The following C ontractor Management Plans (C MPs) specifically address these
potential impacts: Ecological C MP, Biorestoration C MP, and Erosion C ontrol and Reinstatement C MP.
No significant cumulative effects would arise from interactions with the Port of San Martin and Paracas Bay, given the
distance from PERU LNG Project activities. The increase in marine traffic in the area is considered relatively low.
- C EA in the Upstream Project:
The study area for the Upstream Projects encompasses the drainage basins of all tributaries of the Lower Urubamba,
from the Pongo de Mainique (which is the upper end of the Lower Urubamba River) as far as the mouth of the Sepahua
River. In relation to the potential cumulative effects on the upstream facilities, the C EA concludes that third party
projects, including the development of Block 88, exploration activities in Blocks 57 and 58, and management of
protected natural areas that lie partially within or about portions of Block 56, have the potential to interact with the
Upstream Projects and result in cumulative effects on social resources, biological resources, water quality, and air
quality. Specifically, the analysis indicates that the cumulative effects on biological resources, water quality, and air
quality would be minor. C umulative effects are expected to impact social resources, especially at the local community
level; however, with mitigation, the cumulative effects on social resources are considered moderate to minor.
Environmental and Social Management System:
C onstruction phase:
The company has developed an Environmental, Social, Health and Safety Management System (ESHS-MS) following
the specifications of the ISO 14001 and OHSAS 18001 standards. The system comprises three different document tiers
as follows:
- Tier 1: includes the ESHS policies, ESHS management manual, ESHS legal and adopted standards, and the
commitments register (ESHS commitments are compiled in a single document);
- Tier 2: includes PERU LNG Management Plans, the C MPs, and the C ontingency Plans; and
- Tier 3: includes the Environmental and Social Implementation Plans (ESIPs) prepared by the contractors and
approved by PERU LNG, the ESHS performance reports, and the ESHS records.
The ESHS-MS is in its implementation phase for construction activities and the company has prepared an
implementation timeline to ensure that all relevant management tools are applied in a timely manner. C ompliance with
this implementation timeline is included as part of the attached Action Plan. During the transition from the construction
phase to the operation and maintenance phase, the company will adapt its management plans to address the potential
impacts of the new phase. Preparation of this new set of management plans is also included as a requirement of the
attached Action Plan.
A procedure to ensure ongoing compliance with existing and emerging government laws, regulations, and industry
standards is being applied. The company procedures will undergo a periodic review to address any new requirement
from applicable legislation and adopted industry standards, and changes to procedures will be communicated to
employees and contractors for compliance.
The company conducted a review of all potentially applicable environmental, social, and occupational health and safety
standards and prepared a comprehensive summary of these standards in a management document called Project
Environmental and Social Standards. This document includes references to environmental and safety laws, guidelines,
conventions, policies, international treaties, voluntary codes, and corporate policies. C ompliance with some standards
are mandatory (e.g. national law, IFC s Performance Standards), while others are voluntarily adopted. Industry best
practices have been incorporated as project standards.
Each contractor is required to develop ESHS plans that are aligned with the companys ESHS-MS requirements. Prior to
engagement, each contractor presents to PERU LNG its ESIPs, which include procedures and method statements that
specify how the activities relevant to their area of work will be carried out. The ESIPs are based on the requirements
of PERU LNG C MPs. All contractors ESIPs are approved by the company prior to implementation. This condition has
been already fulfilled by the LNG Plant, marine facilities, and quarry construction contractors. The pipeline construction
contractor has been selected and is currently preparing the ESIPs to be submitted to the company for approval. These
ESIPs are required as part of the Action Plan.
C ompliance Assurance:
To ensure that all the requirements within the ESIAs and C MPs have been met, the company has developed an
Environmental and Social C ompliance Assurance Plan including such management tools as site supervision,
monitoring, inspections, and audits.
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The methods used depend on the scope of the assurance activity from management review down to checking
individual activities, which may be short lived or continuous during construction. Monitoring is an ongoing activity,
whereas inspections are more formal but less frequent. Inspections will be carried out in the form of a site walkaround, observing conditions, and identifying non-conformances. Inspections will be conducted as part of the routine
work of the field staff and will cover all areas of construction and operation.
Audits are carried out less frequently than inspections but are also aimed to identify the adequacy of management
systems. Environmental, social, and occupational health and safety Key Performance Indicators (KPIs) were
established for the most significant aspects of the Project construction. Each audit carried out will be documented in the
form of a written report. This will include all identified non-compliances and observations. All non-conformances
identified during audits will be recorded into an action tracking system. The system will allow supervisors to act timely
upon any outstanding corrective action.
The company has defined a Management Review procedure to assess the ESHS-MS strengths and weaknesses and to
determine if there is a need to adjust PERU LNGs policies, objectives, and standards of operation. The review process
takes into account the results of performance measures, inspections, and audits. The companys Senior Management
will review the ESHS-MS on a regular basis (at least annually during construction) for further improvement if needed.
In order to develop the management tools to implement the requirements of:
a) the
b) the
c) the
d) the
-
legal requirements;
ESIAs environmental, social, and health and safety management plans;
Project adopted standards; and
IFC Performance Standards requirements, the company prepared the following PERU LNG management plans:
Environmental and Social C ompliance Assurance Plan;

Health and Safety Plan;
Environment, Social, Health and Safety Training Plan;
Transport Management Plan;
Framework Plan for Investment in C ommunity Development;
Security Management Strategy;
C ontingency Plans;
Pipeline C ompensation Plan;
Fishermen C ompensation Plan;
Rural Andean C ommunities Management Strategy;
Stakeholders Engagement Plan;
C ultural Heritage Management Plan;
C ommunity Health Guidance Document;
Local Hiring and Purchasing Plan;
Biodiversity Action Plan; and
Marine Monitoring Program.
PERU LNG is also developing an Environmental Investment Plan and a Biodiversity Monitoring Program. In addition,
PERU LNG is developing a C orporate Ecological and Biorestoration Management Plan for the pipeline construction
phase. A description of all four of these documents is presented in the Biodiversity Action Plan. Their completion is a
requirement of the attached Action Plan. The respective Ecological and Biorestoration C MPs have been completed and
have been provided to the pipeline construction contractor.
- Operation and maintenance phase:
During the transition period from construction to operation and maintenance the company will need a program to
develop new plans and procedures to address the potential impacts associated with the new phase. This program has
been included in the Action Plan. Operation and maintenance contractors of the PERU LNG facilities will develop or
adapt their management system to satisfy the companys ESHS requirements for operation and maintenance activities.
Organizational C apacity:
Key roles and responsibilities are identified and described in detail in the ESHS-MS Manual. The company has a
dedicated and professional ESHS team with sound experience at local and international levels. For the construction
phase the entire ESHS management team will consist of approximately 30 people for C ommunity Affairs (currently
there are 22 people and the full team will be completed before the pipeline construction starts) and 20 people for
environmental, health and safety (EHS). A team of 5 archaeologists will be responsible for supervision of the C ultural
Heritage Management Plan. Additionally, several consultants have joined the company to serve as advisors and to
conduct studies when needed. The ESHS management team for the operation and maintenance phase would be
significantly smaller; however, this will be defined during the transition from one phase to the next.
Training:
The company has developed an ESHS training program for its own personnel and will provide oversight for contractor
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training to assure that the workers have the skills to perform their activities in a safe, healthy and environmentally
responsible manner. The training includes new or transferred worker orientation, regulatory training, and operator
skills training. An ESHS training matrix has been developed and is based on the Needs Assessment documented in
the ESIA and hazard analysis. The training matrix is updated annually or when required by new legislation or industry
standards. All new contractors will receive an orientation on ESHS management prior to starting work, and new or
transferred workers will receive a work-site orientation and on-the-job or formal training prior to being assigned a job.
C ontractors and subcontractors must provide proof of certification to PERU LNG that their workers are competent to do
their jobs safely.
Monitoring:
The projects ESIAs have established the environmental baseline for its area of influence. This baseline is used as a
reference to assess the results of the environmental monitoring program. The company has procedures in place that
describe how to measure and monitor the implementation of its operational control tools and their effectiveness in
minimizing the identified potential impacts. The performance measures are reported monthly to ensure that PERU
LNGs management can compare outcomes against the set goals and to act promptly to solve deviations.
The KPIs, and leading and lagging metrics, are used to track ESHS performance to ensure planned objectives and
targets are achieved, and that operations are in compliance with the ESHS-MS. Leading metrics indicators include
scheduled training versus completed training, number of audits, job observations, critical task analysis, risk
management, and contractor evaluations. Lagging metrics include the number of incidents, medical or first aid
treatment, spills, temporary work suspension notices, corrective action requests, work improvement notices, and
observations. In addition, recordable and reportable incident rates track man-hours since last incident.
C urrent monitoring programs at the LNG Plant site include air emissions, C aete river water quality, potable water
quality, wastewater, noise, solid wastes and biological monitoring (terrestrial flora and fauna).
PERU LNG has commenced a Marine Monitoring Program in the coastal waters adjacent to the LNG Plant site. The
objectives of the program are to:
(a) characterize the coastal environment and local artisanal fishing activities; and
(b) allow for early detection of any potentially significant impacts related to construction of the breakwater and loading
trestle.
- The Marine Monitoring Program includes the following components:
- Marine ecosystem (which includes seawater quality, sediments, microbiology, and organic contamination);
- Biology (plankton, macrobenthos, fish);
- Hydro-biological monitoring (abundance of fish, plankton, and selected benthic communities, diversity, spatial and
temporal distribution, chemical contaminants of fish tissue, quarterly ranking of commercial fish species); and
- Artisanal fishing with the aim of estimating the amounts of fish captured seasonally, including the variety of species,
and to identify any changes attributable to the marine facilities construction activities.
The information will help to estimate relative abundance of fish, seasonal distribution, community composition, and
population dynamics.
The Marine Monitoring Program is conducted on a quarterly basis at sampling stations near Pampa Melchorita and at
control stations 2.5 and 5 km to the south and north of the trestle location.
The company is carrying out a groundwater monitoring program at Topar Valley, since impacts from quarrying
activities on local water quality and yields was a potential issue of concern raised by the local population. Topar
Valley is 7 km away from the quarry site and studies performed during the ESIA showed that impacts to water supplies
linked to the quarry are unlikely. However, the company started monitoring in January 2007, before opening the
quarry, in order to respond to the concerns of the local population. The development of the monitoring program has
involved consultants, representatives of local communities, and government agencies. The program consists of
monthly water table measurements and quarterly water quality analysis from 8 groundwater wells.
Reporting:
The ESHS-MS Manual divides the reporting system into internal reports and external reports. The internal reports
include KPIs, monthly ESHS statistical report, community relations report, and an archaeological report. The external
reports include the reports required by OSINERGMIN (Peruvian Environmental Regulator for Hydrocarbons) and waste
management reports required by DIGESA (Peruvian Environmental Health Regulator).
The company has currently disclosed through its internet webpage (http://www.perulng.com) relevant information
about the Project, including the approved ESIA, the C EA, and the SLIPs for the LNG Plant and for the pipeline. The
company will prepare on an annual basis an Environmental Report, which includes the description and results of the
environmental monitoring programs, the description of environmental incidents, and the corrective actions taken and
the relevant environmental authorizations and permits obtained. This report is presented to OSINERGMIN for review
and approval.
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C ommunity Engagement:
C onsultation:
The PERU LNG Project has raised a significant level of interest, in particular amongst some national and international
NGOs, not only for its potential social and environmental impacts, but also for its relation to the C amisea Project and
TgP pipeline. For this reason the project has been under extensive public scrutiny. Taking this into account, PERU LNG
conducted an early and comprehensive consultation process designed in accordance with Peruvian regulations and
international best practice (including IFC s Performance Standards). A Stakeholder Engagement Plan (SEP) was
developed describing the consultations that were conducted for each one of the ESIAs (Plant, Plant Amendment,
Quarry, and Pipeline); the consultations that have occurred since each of the ESIAs was disclosed, and consultations
that have been planned for the future. Project information is also disclosed in the website of the MEM
(http://www.minem.gob.pe/).
In total, the consultation process for the four ESIAs included 171 workshops, conducted from June 2002 to March 2006,
involving over 15,000 people from communities located in the projects area of influence, and representatives from
local and national authorities, NGOs, and other institutions. Twenty-one out of these 171 workshops were with various
NGOs, authorities, and government institutions. In the coastal area a total of 11 districts within the Provinces of Pisco,
C hincha, and C aete took part in consultation meetings and workshops. This consultation process also included specific
meetings with local fishermen. In the Andean segment, 34 directly affected Rural Andean C ommunities (RAC ),
subdivided into 36 annexes, distributed in 16 districts, took part in the consultation process. In addition PERU LNG also
consulted with some communities outside the direct area of project influence. In addition to the workshops, informal
consultations were conducted during the pipeline route selection process and archaeological evaluations. Workshops
were announced in advance through coordination meetings and invitation letters to local authorities and land owners,
posters in community areas, leaflets, radio, and newspaper advertisements. C ommunity members located far from the
workshop sites were offered transportation, lodging, and subsistence to facilitate their participation.
For each ESIA, the consultation process included different rounds of meetings to discuss scoping of the ESIAs,
description of findings, development of mitigation measures, and discussion of the final ESIAs. The concerns,
comments, and on-going feedback from participants were documented and considered by the ESIAs. As an example,
additional studies on potential impacts of the pipeline on spring water sites in the Andean section were commissioned
to address community concerns and the resulting pipeline re-routing recommendations were followed. C onsultations
were undertaken mainly through workshops, but also included focus groups and in-depth interviews with key
stakeholders. Special measures and methodologies were adopted for the RAC s to ensure that all consultations were
conducted in a culturally appropriate manner, and took into consideration the low literacy levels in the area and the
logistical difficulties posed by the mountainous landscape. In this region consultations were conducted at the district
level, qualitative data collection techniques such as Participatory Rural Assessment Workshops (PRAW) were used and
presentations and documentation were provided in Quechua and Spanish.
PERU LNG is also conducting extensive additional on-going consultations for the easement acquisition along the
pipelines RoW in the Andean section (more than 400 workshops and meetings). PERU LNGs Pipeline C ompensation
Management Plan (PC MP) includes an information and consultation component aimed at ensuring that Project affected
people (PAP), households, and communities are aware of the process and have opportunities to have their concerns
heard and addressed. This component includes provisions to ensure that consultations are easily accessible; inclusive
of men and women; culturally appropriate; respectful of communities decision-making procedures; free of external
coercion; and that the information is accurate, relevant and understandable (in Spanish and Quechua) and provided in
a timely manner. PERU LNG prepared a Guide to Land and Easement Acquisition and C ompensation. This easy-toread brochure designed for use by affected local households has been, and is still used, in these on-going consultations
with local communities. In addition, PERU LNG encourages Project affected households and communities to seek
external advice during the negotiations and helps to pay the transportation costs of some outside advisors. The whole
process is being thoroughly documented by PERU LNG. IFC witnessed negotiations being conducted in the Departments
of Ayacucho and Huancavelica wherein the above described measures were applied.
As part of its SEP, PERU LNG is engaging and training representatives from government agencies and local fishermen
associations to participate in its Marine Monitoring Program for the Plant. PERU LNG has also engaged communities and
authorities around the Quarry to become active participants of the Groundwater Monitoring Program in the area.
C ommunity participation is also considered in other key documents and programs of its ESHS-MS (i.e. Pipeline
C ompensation Plan, Grievance Procedure, Local Hiring and Purchasing Plan, Framework Plan for Investment in
C ommunity Development, Biorestoration Plan, Biodiversity Monitoring Program, C ontingency Plans, and C ultural
Heritage Management Plan).
PERU LNG has to-date conducted the consultation process for the ESIAs and all land acquisition in a manner consistent
with Free, Prior and Informed C onsultation (FPIC ). In the case of the RAC s, the land easement acquisition process also
included consultation measures consistent with good faith negotiations. The consultation process included on-going
reiterative contacts with communities and individuals over long periods of time; signing of formal agreements with
communal counsels demonstrating that at least two thirds of community members agreed with commencing
negotiations through community-elected representatives (as is required by Peruvian law for transactions involving
communal lands); provision of timely information and time for decision-making according to local cultural practices;
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and registering of signed agreements in public registries, including the outcome of negotiations and clear commitments
for all parties involved. PERU LNG will also implement procedures in line with its SEP to ensure that communities are
informed and consulted on an on-going basis throughout the life of the project.
- Grievance Redress:
PERU LNG has designed a procedure to receive, register, redress, and monitor grievances as part of its ESHS-MS for
the project, with specific considerations for the pre-construction, construction, and operational phases of the project.
This procedure has been designed to be easily accessible at no-cost for complainants, and to be efficient and to
respond to grievances in a culturally suitable way. C omplaints are received through PERU LNG offices located in the
projects area of influence, by PERU LNG C ommunity Relations personnel, as well as by phone, internet, and through
suggestion boxes located in the communities. This process is being publicized to ensure that communities are aware of
its existence and how to use it. A specific grievance redress procedure has been designed for the land acquisition
process and is being communicated to those directly affected as part of the information phase of the negotiation
process.
- C ommunity Relations Team:
C urrently PERU LNG has a C ommunity Relations field team of 22 persons, 9 for the coastal region and 13 for the
Andean region. All are Peruvian and the personnel working in the Andean region are Quechua speakers. Some of them
are members of communities located in the projects area of influence and interact with community members on a
daily basis.
In August 2005, PERU LNG established two permanent public information offices for the coast, one in the city of C aete
and another in the city of C hincha. To date these offices have received nearly 20,000 inquiries, most of them related
to employment opportunities. Through the C hincha and C aete offices, PERU LNG provides information and attention to
questions and concerns from local stakeholders. In the Andean highlands the rugged landscape, long distances, and
rough roads make it difficult for the largely rural population to visit project offices in Ayacucho, so PERU LNG conducts
visits to the communities, which are planned and scheduled in advance by C ommunity Relations officers with local
leaders.
- C ommunity Development:
PERU LNG developed a Framework Plan for Investment in C ommunity Development (FPIC D) to support sustainable
and community needs-based projects. These will be implemented in the projects area of influence and will be aligned
with regional and national priorities through expert implementing partners (including NGOs with local experience). As
part of the FPIC D, PERU LNG commissioned a study of needs and opportunities, which included the identification of
potential community development projects and detailed profiles for two priority projects, called Vientos del Mar for
the communities of C aete and C hincha with the participation of key local stakeholders. This process was conducted
following a participatory planning approach and included capacity building workshops, consultations and surveys.
C ommunity priorities and potential pilot projects were identified as a result of this process. In response to the August
15th, 2007 earthquake that had disastrous impacts in these communities, PERU LNG and its construction contractors, in
coordination with local authorities, provided emergency support mainly through supplying machinery to move debris
and repair roads and bridges. PERU LNG also provided emergency meals and set up field kitchens in the critical first
few days after the earthquake. PERU LNG is in the process of incorporating post-disaster reconstruction and
rehabilitation considerations and is reassessing community priorities for the FPIC D in the coastal region.
- Local hiring:
PERU LNG has developed a Local Hiring and Purchasing Plan (LHPP) to be implemented by PERU LNG and its
contractors, aimed at enhancing local benefits by maximizing local hiring and by purchasing supplies in the projects
area of influence. Local hires will receive all the benefits to which they are legally entitled and all employees will
receive similar pay for similar work, with no discrimination against local hires. While the communities understand that
most of the local hiring will be of unskilled workers, appropriately qualified and experienced local people will also
receive preferential hiring for semi-skilled and skilled jobs. PERU LNG has clearly communicated the number of
potential job openings to local communities in order to avoid raising expectations that cannot be met. For the Plant and
Quarry, PERU LNG will hire unskilled workers in equal numbers from C hincha and C aete, based on an agreement with
the local population and elected officials. In the pipeline section, provisions are in place to ensure that jobs are
distributed proportionately among local villages and communities, particularly those directly impacted. The LHPP will be
implemented in close co-ordination with the C ommunity Relations Team, and includes clear recruitment criteria,
particularly for the Andean section, where traditional decision making mechanisms and cultural particularities are
addressed. For example, contractors will communicate their labor needs to the C ommunity Relations Team, who will
meet with local communities in order to request workers. The communities will propose a list of job candidates to the
C ommunity Relations Team. This will help to ensure community participation and will help to minimize bringing outside
laborers into vulnerable communities.
- IFC Additionality:
IFC and PERU LNG are exploring opportunities to build on the s existing social investment programs and develop new
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areas for collaboration to enhance local benefits. The following areas have been identified:
(i) develop a program to further develop local government capacity in managing the use of revenues and enhance
social accountability to improve the impact of local public investments, building on previous IFC experience in the
mining sector in Peru;
(ii) improve PERU LNGs social investment strategy and enhance stakeholder participation in its design and
implementation, including discussion of developing third party evaluation and monitoring capacity; and
(iii) enhance PERU LNGs strategy for local procurement and promotion of small and medium enterprises (SMEs) to
include SMEs in the supply chain, helping to ensure long term sustainability and contribution to the local economy.
Performance Standard 2: Labor and working conditions:
PERU LNG has developed Human Resources policies and procedures in accordance with local regulations, ILO
C onventions, and IFC s Performance Standard 2, and these are appropriately communicated to employees. The
company protects the integrity of its workforce by imposing best practice occupational health and safety management
plans. Local employees will receive the same personal safety equipment as other employees. Local employees will also
receive safety training to minimize work-related accidents. Local employees will be transported to the work site in
project vehicles, which will also help to minimize the risk of traffic accidents.
Occupational Health and Safety:
One of the key components of the companys ESHS-MS is the Health and Safety Plan. This is particularly critical during
the construction phase because of the diversity of contractors and subcontractor, activities, and work fronts. The peak
demand for workers at the LNG Plant & marine facilities is expected to be 3,245 workers during construction activities.
During the operational phase the average number of employees and contractors is expected to be less than 130
people. The pipeline construction phase will have a peak demand of 3,750 workers. The influx of new workers and the
spread of different work fronts make the health and safety performance a key challenge for the project.
This Health and Safety Plan includes provisions for effective communication of health and safety policies, plans and
procedures, safety performance measurement, hazard assessment and risk management programs; incident reporting
and investigation, personal protective equipment, hazardous material controls, traffic safety regulations, workplace
violence and harassment, ergonomics, excavations and openings, electrical equipment, emergency response plans,
medical and first aid services, alcohol and drugs, and fire prevention and protection programs. It is the responsibility
of PERU LNG and its contractors to ensure that all their workers are adequately trained for the job to be performed,
that all potential hazards are reviewed, and that all measures are taken to eliminate or minimize the hazards prior to
starting the job. The Health and Safety Plan applies to PERU LNG, contractor and subcontractor staff.
There are provisions for contractor selection ESHS criteria and for contractor ESHS performance assessment, based on
demonstrated commitment, incident records, outcomes of inspections and audits, training and experience, emergency
response plans, and when applicable the specific contractors Health and Safety Plan. Even though subcontractors are
defined as part of the prime contractor, major subcontractors will be approved by PERU LNG before starting work.
C ontractors are obliged to comply with PERU LNG ESHS requirements and to avoid operational risks, preventing
injuries to persons, damage to properties or adverse effects on the environment.
C ontractors will conduct work site hazard assessments (including, physical, chemical and biological hazards) and
implement a Safe Work Permit system. Pre-job or tailgate safety meetings will be part of the contractors training plan.
- Safety Properties of LNG:
There is a very low probability of release of LNG during normal industry operations due to the safety systems that are
in place. Methane gas ignites only if the ratio of gas vapor to air is within the limited flammability range. The
flammability limits of methane, the dominant component of LNG vapor, are 5 % and 15 % by volume, respectively.
When fuel concentration exceeds its upper flammability limit, it cannot burn because too little oxygen is present. This
situation exists, for example, in a closed, secure storage tank where the vapor concentration is approximately 100 %
methane. When fuel concentration is below the lower flammability limit, it cannot burn because too little methane is
present, LNG is less dense than water, and LNG vapors are relatively hard to ignite. Above -110C LNG vapor is lighter
than air. If LNG spills on the ground or on water and the resulting flammable mixture of vapor and air does not
encounter an ignition source, it will warm, rise, and dissipate into the atmosphere.
Use of personal protective equipment:
The procedure for use of Personal Protective Equipment (PPE) is compulsory to all employees of PERU LNG,
contractors, and visitors. All employees sign a PPE policy notification and a PPE reception note. Records of this are
kept to track compliance.
- Transportation management:
As failure to adhere to vehicular safety procedures is commonly one of the more frequent causes of personal
incidents, the company has developed a Transport Management Plan. This plan specifies responsibilities for drivers and
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operators of heavy equipment, their supervisors, the contractors ESHS department as well as passengers. As
management tools, the plan includes route selection, traffic management, real time GPS tracking, vehicle condition and
safety equipment, transportation risk assessment, and emergency procedures.
Hazardous substances:
The Health and Safety Plan states that a hazard assessment must be carried out for every substance brought into the
work site. C opies of the assessment and Material Safety Data Sheets (MSDS) are available for PERU LNG to examine
and are accessible at work sites as needed. No chemical or any other hazardous material should be brought into PERU
LNG facilities unless approved in writing by PERU LNGs management.
Occupational Health:
A preventive program to ensure occupational hygiene (personal and environmental hygiene, vision, noise, ergonomics,
etc.) has been established and conducted by the Health and Safety Department. Pre-occupational medical evaluations,
annual control evaluations, and retirement evaluations are performed for all employees. An inoculation plan applies to
all employees and visitors to the project. PERU LNG strictly requires that no alcohol and/or nonprescription drugs be
consumed by any worker while they are on duty (including PERU LNGs own personnel and contractors).
Employment C onditions:
PERU LNG is an equal employment opportunity employer, and its Human Resources (HR) policy includes specific
provisions on sexual harassment, non-discrimination, fair salaries, preferential local hiring, recruitment transparency,
and health and safety. As part of this project, PERU LNG has a C ode of C onduct that outlines employee entitlement to
lodge a claim in case of work related disagreement and will develop a grievance procedure for employees based on
international best practices. As part of its policy of not engaging in forced or manipulated labor, PERU LNG does not
hire workers through unauthorized third parties, such as job brokers, and does not engage any child labor. Peruvian
national law provides for non-discrimination and protects freedom of association and collective bargaining. The
reputation and previous work of all contractors is assessed, prior to awarding them work, through the completion of a
health and safety questionnaire , and all of them are contractually obliged to comply with local labor laws and PERU
LNGs HR and ESHS policies (which include IFC s Performance Standard 2). Should any contractor breach the policies
of the project or any legislative requirements, PERU LNG has the ability to employ disciplinary action up to and
including removal from the project or termination.
Performance Standard 3: Pollution Prevention and Abatement:
As part of its ESHS-MS the company has developed Pollution Prevention C MPs for the LNG Plant, the marine facilities
construction, the quarry, and for the pipeline construction. C ontractors have to submit to PERU LNG for approval a
Pollution Prevention ESIP before starting their jobs. The management plan addresses as needed, air emissions,
campsites management, dust control, water abstraction procedures, wastewaters management, river crossings, noise
abatement, vehicle maintenance, fuel and chemical storage and handling procedures, and oil spill control
management.
The investment decision for PERU LNG was made in December 2006 and the notice to proceed on the LNG Plant EPC
contract was given in January 2007. Long lead equipment has thus been ordered and is being manufactured to the
project specifications in force at the time, that is, World Bank Pollution Prevention and Abatement Handbook (July,
1998). This Handbook has since been superseded by the IFC Industry Sector Environmental, Health and Safety (EHS)
Guidelines (April, 2007). PERU LNG has performed a review of the adopted project Standards against these latest IFC
EHS Guidelines. The project complies with most of the IFC EHS Guidelines and with the EHS Guidelines for Liquefied
Natural Gas (LNG) Facilities. There are two exceptions one is related to the quality of the sanitary sewage treatment
effluents, described in the following paragraph, and the second is related to noise described in the section on Noise.
With regards to the sanitary sewage treatment plant, the manufacturer warranties a performance that will produce an
effluent with chemical oxygen demand (C OD) of 250 mg/L and a biological oxygen demand (BOD) of 50 mg/L (which
were the former WB/IFC standards) and not the new requirements which are C OD of 125 mg/L and BOD of 30 mg/L.
The equipment could reach these values under optimal conditions subject to careful management. However, the
manufacturer does not warranty such performance. The company will do its best to operate the wastewater treatment
equipment at such optimum conditions, however, cannot commit at this stage to comply with this standard. This
deviation does not pose a major environmental risk as the treatment plant discharge will be used for irrigation of
green areas in the plant site.
Atmospheric emissions:
- C onstruction phase:
The LNG Plant project site is located in a rural area where the air quality is considered representative of arid areas
with wind-transported particulate matter. There are no major sources of air pollution other than motor vehicle
emissions. C onstruction equipment used to prepare the site will produce emissions to the atmosphere from the
combustion of fuels such as diesel and gasoline. These gases include nitrogen oxide (NO 2 ), carbon monoxide (C O),
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particulate matter (PM10), and sulfur dioxide (SO 2 ). The emissions are expected to be temporary and intermittent
during the construction phase, producing minimal air quality impacts. Dust will be controlled by periodically wetting
access roads and RoW areas and by imposing vehicle speed restrictions in the work and nearby areas. Proper and
systematic maintenance will be carried out on vehicles, power generators, and heavy machinery to improve
combustion efficiency and emissions quality.
For the pipeline, a specific risk study will be conducted by the C ontractor to identify sensitive areas along access roads
(near towns, crops, etc.). For these areas, the contractor will propose specific mitigation measures tailored to those
identified sensitive areas.
Air quality impacts during construction are considered to be local, since the dispersion of dust will be less than 1 km
from the site. Ambient air quality impacts associated with the construction phase are considered insignificant.
Operation and maintenance phase:
As reported in the ESIA, the maximum NO 2 , PM10, SO 2 , and C O concentrations predicted for the LNG Plant comply
with the IFC EHS General Guidelines (2007), the Peru Air Quality Standards, and U.S. Ambient Air Quality Standards.
The concentrations predicted to occur within 1 km of the site are only 66 % of the ambient air quality limits. The air
quality modeling during the operation phase for the proposed Plant indicates that the total air quality concentrations on
site for NO 2 , SO 2 , and C O are predicted to be less than 20 % of the ambient air quality guidelines or standards. The
project sources contribute less than 1 % to the total PM10 concentration, as the majority of the PM10 is due to
background concentrations estimated from monitoring data. Similarly, the majority of the total SO 2 and C O
concentrations are also due to background concentrations; the project sources contribute 30 % or less to the
maximum total concentrations.
The potential incremental concentrations of other pollutants at the closest human receptors (the two closest
communities are approximately 4 km and 8 km to the south of the project respectively) are expected to be much
lower than the maximum pollutant concentrations reported for the project.
Fugitive emissions:
Sources of fugitive emissions of volatile organic compounds (VOC s) during commissioning, start-up, and operations
are typically from valves, flanges, pump, and compressor seals. Measures taken to minimize emissions from these
sources include:
Valves All cryogenic valves will be tested in shop to ensure zero leakage (<0.0005mL/s) to atmosphere by
pressuring to 1.1 times design pressure with helium, and measuring leakage with a mass spectrometer;
Flanges These are minimized, especially in the cryogenic sections of the plant as per NFPA 59A;
Pumps All pumps in hydrocarbon service have either tandem seals or are canned pumps with the motor submerged
in the can; and
C ompressors All compressors in hydrocarbon service have dry gas seals with the hydrocarbon contaminated seal
gas being piped to the flare system.
In addition all drains and vents to atmosphere are blinded and all gas sampling points are routed to the flare system.
Boil-Off Gas (BOG) C ontrol:
LNG loading facilities include four 16 inch specialty pipe-and-swivel LNG loading arms. Three arms will normally be
used for LNG loading and the fourth one will be used to return vapor to the plant's BOG C ompressors.
BOG is generated by a heat leak into the storage tanks and LNG lines, flash from LNG rundown, and vapor return from
the LNG ship during ship loading mode. The priority for LNG vapor disposal is the vapor return to the LNG tank by
pressure differential; or the vapor return to plant for fuel gas using BOG compressors. Venting of the vapor from the
LNG storage tank to the BOG flare may take place in the rare event that all boil-off compressors are down.
Greenhouse Gas Emissions:
During operations the primary combustion emissions from the LNG Plant will be through the turbine, compressor, and
gas-fired heater exhaust stacks.
Vented emissions from the LNG Plant will be the acid gases removed from dry natural gas. The acid gas will be largely
C O 2 (no sulfur content has been detected in the raw gas) which will be vented to the atmosphere.
Approximately 1,150,000 tonnes/year of C O 2 equivalent will be emitted in total (inclusive of 56,000 tonnes/year of
C O 2 vented from the AGRU; and 7,500 tonnes/year of methane via fugitive emissions converted to C O 2 equivalent).
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Pressure relief valves are routed to the flare header, with the exception of the pressure relief valve to the inlet KO
drum.
All power needs will be generated at the LNG Plant site using part of the natural gas received from Malvinas Gas
Separation Plant (refer to next heading). High efficiency gas turbines for power generation will be installed. The
company will monitor its GHG emissions and will report these emissions annually to IFC through the Annual Monitoring
Report (AMR).
The company will also provide dual fuel generators and an early fuel gas line for the construction camp to reduce the
level of emissions that would have been generated by diesel driven generators. In addition, during construction and
commissioning the ompany will use nitrogen rather than refrigerant for initial compressor run-in, limiting refrigerant
flaring during commissioning.
Energy Efficiency:
The volume of feed gas that will be used to power the LNG Plant is approximately 47 MMC FD. This equates to
approximately 7.6 % of the 620 MMC FD of feed gas delivered to the LNG Plant. The following measures have been
taken as part of the design of the LNG Plant to maximize energy efficiency and minimize consumption of feed gas:
Gas turbine generators will have high fuel efficiency, and will have a lower heat rating than the turbines used in the
original design and lower emissions with dry, low-NO X burners on generators and compressor drivers;
A burner management control systems will be installed for the gas-fired oil heaters and the dehydrator regeneration
heater;
A policy of no flaring during ship loading operations has been adopted, with boil-off gases being compressed and recirculated into the fuel system; and
A proprietary energy efficient Amine system, designed by BASF, has been selected for the project.
The ompany has also reduced the length of time for the permanent power generators to run during commissioning by
8 months, thus reducing natural gas usage. The ompany has not identified any other cost effective means to improve
efficiency during operations other than those previously identified. However, energy and emissions savings will be
continuously evaluated in the operational phase.
Pollution Prevention:
Major natural hazards:
The LNG Plant and the LNG storage tanks will be located at a site sufficiently elevated to withstand a tsunami. The
foundation design, particularly for the LNG storage tanks, and the improved slope stability measures are planned to
avoid serious damage including spills, after foreseeable earthquake impacts. The trestle is designed to withstand
earthquake loadings, as well as the force of a tsunami wave.
LNG Tanks Safety:
The tanks pressure is controlled by the operation of the BOG compressors. When outside of the BOG compressor
control range, other control systems like relief valves are used to protect the tank. The tank venting control valve
opens on high pressure sending tank vapor to the BOG flare. Relief valves on the tank open to control the maximum
pressure.
To avoid any roll-over situation at the LNG tanks, density and temperature measurement devices throughout the full
working volume of the tanks will be installed on each tank to ensure no component stratification, or significant LNG
temperature variances developing within the tanks. Pump withdrawal is from the bottom of each tank. The top fill from
the LNG rundown line and a top return of the cooling recirculation line ensure that adequate mixing of the tank
contents prevents any stratification of LNG.
LNG loading pollution control:
At the LNG loading system two dedicated liquid loading arms, plus one arm dedicated for vapor return, are to be
installed on the jetty. One additional dual use arm will be provided, which can operate as either a LNG loading arm or
vapor return arm. All four LNG loading arms will be provided with powered emergency release couplings (PERC ) that
have two valves mechanically interlinked that will close within 5 seconds. Upon closure, the PERC can then release
along with the operation of quick disconnect mooring line couplings to enable the ship to move away from the berth
quickly, if required, due to wave conditions or other circumstances. For the PERC on each loading arm, one valve
would go with the ship to maintain the ship LNG containment while the other valve remains with the loading arm to
maintain the plant LNG containment.
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Pipeline pollution control:

The pipeline design has provisions for preventing external corrosion effects by cathodic protection and a 3 layered
polyethylene coating. Internal coating for flow enhancing is part of the design. As part of the maintenance
infrastructure, scraper traps will be installed and block valves will be located approximately every 30 km. A System
C ontrol and Data Acquisition (SC ADA) system independent from the existing TgP system shall provide monitoring and
control abilities for supervision. The pipeline will have a natural gas leak detection system based on pressure sensors
situated along the pipe. Blocking valves are planned all along the pipeline to minimize significant loss of inventories
due to any breakages. The pipeline will be buried and the minimum depth in normal soil conditions will be 0.9 meters.
In rock areas the minimum depth of cover will be 0.6 meters.
Noise:
During the construction phase a temporary increase in noise levels will take place in all work areas. However with
proper motor maintenance, and the use of mufflers on exhaust pipes and acoustic insulation of generators, the noise
will be mitigated to acceptable occupational health levels. Those areas near equipment where hearing protection may
be required when in operation are required to be identified by signs. Personnel will be trained on the consequences
from exposure to excessive noise levels and the correct use of hearing personal protective equipment, such as ear
plugs or suitable ear protectors.
The project is unlikely to increase background noise levels by 3 dB; however, this may prove difficult to achieve in
some circumstances, especially during construction. The project is committed to constructing and operating the
facilities in accordance with OSHA, wherein exposure to impulsive or impact noise is limited to a 140 dB peak sound
pressure level. In emergency or upset conditions the pressure relief valves (PRVs) and ground flare at the LNG Plant
have the potential to exceed the IFC EHS Guidelines (April 2007), but will be compliant with OSHA requirements.
C urrent noise monitoring campaigns demonstrate compliance with noise level standards for ambient noise and
occupational health requirements.
The ESIA for the Plant and the Marine facilities considers that underwater noise produced by piling and other
construction activities will be localized, intermittent, and of short-term duration. The company has adopted a soft start
procedure for pile driving to reduce the underwater noise impact.
Marine Environment:
The main potential environmental impacts identified for the LNG Plant relate to potential impacts to the marine
environment associated with dredging, the potential for spills, and ship traffic.
Intertidal and subtidal planktonic and benthic communities will support impacts from dredging activities assessed as
moderate. Local fishing activity is more likely to suffer impacts due to substrate removal and increased turbidity;
however, these impacts would be temporary and localized. Dredging will be another source of impacts for the marine
area of influence because it will increase turbidity levels. Management plans require the contractor to conduct physical
and chemical analyses of sediments prior to commencing dredging operations, and to implement measures to
minimize sediment re-suspension. Dredging will be planned to take place during low flow and turbidity levels will be
below 200 m/L, as much as local conditions allow. The dredged material will be placed in a designated area located 6.5
km southwest of the dredging area. In this case the same standard applies to maximum turbidity levels at the disposal
site.
Project Footprint:
Plant and quarry sites:
The total area available for the LNG Plant site is 520 ha, and since the plant site is in an arid area with little or no
vegetation the impacts of clearing and grading activities will be relatively small. No natural or critical habitats have
been identified in the area occupied by LNG Plant site, quarry or its access road. Impacts to some endemic plant
species in the area have been addressed in the Ecological Management Plan. The site selection criteria to minimize the
footprint are described in the Performance Standard 1 section of this document.
Pipeline RoW:
The risks of slope instability during pipeline construction will be reduced by cutting, filling, land leveling, appropriate
methods of trench excavation, construction of shooflies, and establishment of areas for deposit of excess material.
Erosion may be significant due to relatively high rainfall in the highlands and strong winds along the coast that may
temporarily affect exposed and unprotected soils. PERU LNG has committed to implement measures for erosion control
to mitigate the impact, and this will be addressed in the pipeline C MPs.
Mitigation procedures will be put into effect during trench excavation, pipe installation, and pipe covering at river
crossings to preserve aquatic habitats, minimize diversions, maintain uninterrupted water flow, avoid water use
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conflicts, and preserve the landscape in crossing areas. Areas with erosion problems, steep slopes, and a high risk of
landslides will be avoided wherever possible. This includes areas that are currently cleared of brush with a slope
exceeding 50 %. Grading will follow the natural contours of the land wherever possible.
Field surveys identified some 40 river and seasonal creek crossings along the pipeline, of which 9 are significant:
namely the Altomayo, Torobamba, Yucay, Vinchos, Palmitos, Pampas, Pisco, Matagente, and C hico perennial river
crossings. Detailed studies were undertaken in order to design adequate and environmentally safe crossings. Water
bodies within 100 meters on each side of the pipeline route were identified and classified as wetlands, aquifers, rivers,
and/or irrigation channels. River crossing procedures and special measures to protect stream banks and nearby water
bodies will be part of the pipeline C MPs. In addition, specific method statements will be prepared by the pipeline
construction contractor and approved by PERU LNG for wetland crossings.
During construction downstream flow will be maintained to avoid serious impacts to streams. All water diversion
structures and dikes will be removed once river crossing installations are completed in order to restore the normal
flow. In small water courses culverts and other materials will be used temporarily to avoid sediment disturbance due to
vehicular and machinery transportation. All temporary crossings will be removed once construction activities are
completed.
Topsoil will be salvaged where feasible from disturbed areas, including the RoW, access roads, camps facilities, and all
other project facilities. Areas subject to topsoil stripping will be identified prior to starting grading activities. Topsoil will
be stockpiled separately from subsoil for the pipeline trench and will be protected by diversion ditches, slope breakers,
and silt fences, as needed. Restored soil cover will be stabilized and seeded as soon as possible after construction.
Existing agricultural land will be impacted during pipeline construction, particularly in the Pisco, Torobamba, Vinchos,
Alfarpampa, and Sachapampa Valleys. Restoration measures will be taken shortly after pipeline burial, to return the
land to its previous agricultural yields.
Erosion control matting will be used as required to protect slopes, and ensure adequate drainage, soil reinforcement,
erosion control, and subsoil stabilization. Impermeable, contoured crowned channels will be constructed at the top of
the cut-bank in order to adequately intercept and rapidly evacuate rainwater, so as to avoid possible water logging and
soil instability.
The number of shooflies and access roads will be limited in order to minimize footprint impacts. It is estimated that 85
% of roads used by the project will be existing roads (which will be improved or restored as necessary) and 15 % of
project access roads will be newly constructed. Any new road required by the pipeline construction contractor will be
previously assessed to identify its potential environmental, social, and archeological impacts and justify the need to
open a new access. PERU LNG has the final decision to approve or not the new road request.
Special measures will be undertaken to limit impacts to movement and access by local communities, domestic stock
(including cattle, goats and high Andean camelids) and wildlife. These measures will include ensuring periodic gaps
during construction, constructing temporary cross over facilities and limiting the time during which each section of
trench will be open.
Excess material from RoW leveling will be used in backfill or in re-contouring in the same locations, and may be
temporarily stockpiled in stable areas with adequate erosion and sediment control. Sites for storing excess excavated
material will be situated away from settlement areas, channels, water bodies, reservoirs, public service infrastructure,
ecologically sensitive areas (i.e. wetlands, nesting areas and areas of high biodiversity), cultural or archaeological
sites, and cultivated areas. Reasonable best efforts will be made to restore the natural slope of the land, replace
topsoil, and re-vegetate as close to native conditions as possible.
C onstruction camps:
Impact mitigation measures will be implemented to minimize the environmental, social, and archeological impacts of
camps. The camp setup will conform to the topography of the natural terrain as closely as feasible, and soil will only be
moved or graded when approved infrastructure is being built or set up. Excessive earth moving is to be avoided.
Wastes and wastewaters generated in the camp will be managed in accordance with the Waste Management C MP.
Machinery washing, refueling, and oil changing will be conducted in the machinery yards built on impervious surfaces
specific for the purpose. Fuels and lubricants will be stored in adequately labeled drums in properly designed areas. Oil
and fuel depots, as well as refueling areas, will be designed to avoid leaks. C amps will be dismantled once construction
of a particular spread or section of RoW has been completed. All the equipment will be cleaned and any type of waste
present in the machinery maintenance and fuel storage areas will be removed and disposed. After all wastes have
been removed and properly disposed, soils will be treated to alleviate compaction in those areas that have suffered
the greatest soil compaction. The disturbed surface will be tilled and topsoil replaced. The surface will then be fully revegetated in accordance with Biorestoration C MP.
- Quarries and Borrow Pits:
All new quarries opened exclusively for and by the project used for extracting materials during pipeline construction
will be closed with the land surface being naturally contoured using leftover waste rock. Quarry recontouring work (and
if necessary terraces) and topsoil reinstatement will be undertaken to ensure slope stability. Finally, the layer of topsoil
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will be reinstated and re-vegetated as appropriate.

- Revegetation:
The Biorestoration C MP describes site surface preparation, plant species selection, planting procedures and the type of
monitoring that should be applied in different environments. The re-vegetation program will use native or naturalized
species, based on an existing assessment of re-vegetation projects implemented in the Andean valleys and cloud
forest areas, particularly with respect to practices such as species used, seeds and seedlings, plantations, and direct
sowing. The re-vegetation program will include the participation of local communities to build on their experience and
knowledge of the area. Advice has also been provided by the Ministry of Agriculture through PRONAMAC HC S (National
Program of Hydrographic Basin Management and Soil C onservation).
Water Use:
The LNG Plant site is located between the Topar Valley (12 km to the southeast) and the C aete River (15 km to the
northwest). These rivers predominantly recharge from precipitation in the Andean mountain range and recharge from
the arid lower basin is insignificant.
In the medium to long term all water required for plant operations and for on-site project personnel will be processed
from raw seawater. A system of reverse osmosis will be used to produce potable water, demineralized water, service
water and firewater. In the short term initial fresh water abstraction from the C aete River will be temporarily used
(through 2008) until the desalinization plant is installed. Fresh water will be abstracted from near the C aete River
mouth and will neither impact other users of this resource nor biotic life. Polymers will be used for dust control along
the quarry access road. Any impacts on the groundwater quality or level in the Topar Valley (located 7 km away from
the quarry) due to the ground vibrations generated by the quarry exploitation are highly unlikely due to the large
distance, and that the aquifers at GNL-2 Quarry and Topar are not hydraulically connected.
Waste Management:
The Waste Management C MP focuses on the incorporation of both general and specific practices including:
minimization of residues, segregation at source or other appropriate point, temporary storage, collection, transport,
treatment, reuse and recycling, and final disposal. Any onsite contractors who generate hazardous waste will submit to
PERU LNG ESHS Department a specific waste management plan, which will incorporate guidelines and procedures to
manage and control this waste (solids, semi-solids, and liquids) as outlined in PERU LNGs Waste Management C MP.
C ontractors Waste Management ESIP will comply with relevant environmental legislation that controls the final
disposal of waste, such as regional and municipal by-laws, including by-laws established by DIGESA. A survey and
assessment was undertaken of all available contractors and their capability to comply with PERU LNG standards, prior
to final selection of qualified waste management contractors.
Waste oils, lubricants, and fuels will be stored in clearly marked drums which will be treated by a waste services
provider approved by DIGESA.
Wastewaters:
For the treatment of domestic liquid wastes, a package treatment plant (or plants) will be utilized, which use an
activated sludge treatment process with extended aeration. The sludge will be treated through processes of
dehydration, biological or chemical stabilization before its final disposal. Treatment plant discharge will be used for
irrigation of green areas in the plant site. Portable toilets for the use of work personnel in the dock area will be
installed.
As mentioned previously the sanitary sewage treatment plant was ordered prior to the release of the IFC new
guidelines in April 2007. The manufacturer warranties a performance that will produce an effluent with C OD of 250
mg/L and BOD of 50 mg/L (which were the former World Bank/IFC standards) while the Guidelines new requirements
are C OD of 125 mg/L and BOD of 30 mg/L. The equipment could reach these values under optimal conditions subject
to careful management. The company will undertake best efforts to operate the wastewater treatment equipment at
such optimum conditions, but cannot commit at this stage to comply with this standard.
Oily water from the process units, the loading dock area, and the drainage of paved areas will be conveyed and
treated in API/C PI separators. Oily effluents from the API/C PI systems will be stored in a slop oil tank for their
subsequent transportation in trucks to incineration facilities or external treatment/recycling. Treated water from the
separation process in the API system will be mixed with brine from the desalinization plant, and will then be discharged
to the ocean through an effluent outfall. Water from the C PI separator process will be reprocessed in the API separator
system. This wastewater will meet project environmental standards after treatment and prior to being discharged.
Waste streams from the desalination unit will be concentrated brine (up to 60 m3 /hr), and filter backwash (intermittent
flow), and since this is non-hazardous effluent it will be discharged via an outfall sewer to the sea.
Used lubricants, hydraulic liquids, and solvents will be collected in suitable containers and placed in a hazardous waste
storage area, with an impermeable secondary containment system, until final transportation to a recycling or disposal
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site.
- Hydrotest Plan:
Prior to commencing any hydrostatic tests, the contractor will prepare a Hydrostatic Test Water ESIP for review and
approval by PERU LNG. The Hydrostatic Test Water ESIP will follow internationally accepted hydrotest practices such as
the C ode of Practice for the release of Hydrostatic Test Water from Hydrostatic Testing of Petroleum Liquid and Gas
Pipelines, Alberta Environmental Protection, 1999; Hydrostatic Test Water Management Guidelines from C anadian
Association of Petroleum Producers, 1996.
Hydrostatic test headers will not be placed within wetlands. Once the test sections have been identified, full information
on the water requirements, specific water intake points, and the final disposal of the used water will be obtained and
evaluated. Sections of pipeline crossing major rivers will be hydrostatically tested prior to installation to identify any
leaks.
All abstraction and disposal sites will be subject to an environmental risk assessment. The risk assessment must
demonstrate that abstraction and discharge will have minimal environmental effect on the receiving waters prior to
commencing activities. Water for hydrostatic testing will not be sourced from potable water supplies but from
watercourses. Where possible, test water will be reused in adjacent test segments. Abstraction rates from surface
water bodies such as streams and rivers will not exceed 10 % of the flow rate of the stream or river at the time of
abstraction, nor cause an effect on the water level in a natural water body. However, in some areas along the RoW
abstraction levels may be up to 30% of the flow rate of the stream or river, although the project is committed not to
impact water availability for users upstream or significantly impact wildlife.
The water to be used for hydrostatic testing purposes will only be treated with oxygen inhibitors. No biocides or
chemicals will be required for treatment unless detailed studies and justification are carried out by PERU LNGs Pipeline
C ontractor and approved by PERU LNG. Prior to the discharge of treated test water, field sampling will be conducted to
ensure that the quality of such water complies with the established standards.
Hazardous Material Management:
Fuel is required to be transported from local supply centers located in Lima, Pisco, and Ayacucho to storage areas in
each camp, and from the storage areas to the work site. Only authorized companies registered with the General
Bureau of Hydrocarbons (DGH) of the MEM can be used as fuel suppliers and transporters. Fuel trucks must be duly
identified with safety signs or warning signs from the National Fire Protection Association (i.e. danger, fuel or
danger, flammable), and must be equipped with the appropriate safety equipment. The trucks have to carry MSDS
and relevant permits. Fuel truck drivers are certified and trained by the project for the specific activity and in
compliance with the project Health and Safety Plan. Drivers are trained in initial emergency response for spills, and all
trucks are equipped with a communication system connected to the base camps and refueling areas.
Fuel storage facilities are equipped with a containment basin with impervious lining and compacted base. The minimum
volume of the containment area will be 110% of the volume of the largest tank or container. In areas prone to
electrical storms (especially between Huaytar to C hiquintirca) facilities will be equipped with lightning rods and all
electrical equipment and motors will always be grounded.
All project chemicals must be stored in covered and lockable buildings equipped with shelves or pallets with plastic
liners, and a containment feature to prevent any spill from reaching a floor drain. Temperature, ventilation, and
humidity conditions are monitored when such conditions are important for chemical safety. Staff is trained on the
proper handling of these products. During pipeline construction a machinery yard will be set up in the camps to
perform maintenance work on construction machinery and vehicles, as needed. As lubricants, fuel and other
potentially hazardous substances are handled in these areas, the machinery yard will be protected by gutters or berms
and other containment measures in the event of a spill incident.
Decommissioning:
The ESIA and the ESHS management plans make provision for decommissioning. The final abandonment of the project
facilities is expected to depend on the duration of existing natural gas reserves as well as the possibility that additional
natural gas reserves are found. Other factors, such as economic or market conditions, may also play a role in
determining the timing of abandonment. The final abandonment will consist of dismantling permanent installations that
were used during the projects operations, permanent closing of the RoW and the final pipeline abandonment.
All infrastructures that can be dismantled will be disassembled and transported to PERU LNGs warehouses. C ement
slabs can be left in a designated area with the landowners consent or will be demolished and fragments will be buried
in waste pits or separate pits prepared for this purpose that comply with PERU LNG safety, location, and design
requirements. The piping that connects surface installations with the pipeline will be cut under the surface, sealed with
cement stoppers at their openings, and covered with soil for revegetation.
The evacuation of natural gas in the pipeline will begin through depressurization by opening blocking valves or specific
valves installed for this purpose. This operation will be implemented with strict safety controls and will use equipment
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to measure explosive mixing to identify risk. Once the natural gas is evacuated, the pipeline will not present a risk to
the population or environment because of its inert nature. Leaving pipes buried will have the least social and
environmental impact of any alternative, and would only require some work in specific places to reduce pipe
interference in future land use. Therefore, impacts of decommissioning are likely to be limited.
PERU LNG will inspect the area during and after final abandonment to confirm the effectiveness of restoration and
closure of the pipeline. Monitoring activity will be carried out in places where closeout activities are implemented to
verify the fulfillment of plan objectives. Monitoring of the RoW will include an evaluation of the correct functioning of
necessary geotechnical control, erosion and re-vegetation measures. PERU LNG will inventory affected areas and
newly identified areas. Once stability is accomplished, evaluation and monitoring activities will be terminated.
A detailed C losure and Abandonment Plan will be submitted to the national authorities. Article 56 of the Regulations for
Environmental Protection in Hydrocarbon Activities (DS No. 046-96-EM) stipulates that an abandonment plan must be
presented to the proper authorities 45 calendar days before the end of operational activities. The plan will include
description of existing environmental conditions, actions to remediate any contamination, and details of the
abandonment process. Prior to abandonment the company will establish a fund to provide for closure of operations.
Emergency Response:
PERU LNG has developed a C ontingency Plan for the construction phase of the LNG Plant based on a risk analysis of
identified potential hazards, which were classified and ranked as follows:
-
hazards
hazards
hazards
hazards
hazards
to
to
to
to
to
people;
environment;
property;
production; and
reputation.
The C ontingency Plan presents details for initial response to any incident at a construction site, and roles and
responsibilities in the event of an emergency. Additionally, the C ontingency Plan describes different emergency
scenarios including: vehicle incidents, fires, explosions, natural disasters, landslides, social disturbance, sabotage,
storm and windy conditions at sea, and spills. The C ontingency Plan for the pipeline construction will be completed
prior to the commencement of construction in 2008 and is committed in the Action Plan. The C ontingency Plan for the
operations phase for the entire project will be prepared prior to commencement of operations and will be subject to an
expert review as noted in the Action Plan.
Performance Standard 4: C ommunity Health, Safety and Security:
The closest community to the LNG Plant is located 4 km to the South and the quarry is located approximately 7 km
South of the nearest villages. Groups of make-shift huts around the LNG Plant site are not occupied permanently and
are located beyond the defined buffer zone, which was designed to minimize safety risks. The pipeline does not cross
through any villages; however there are a few houses in the vicinity of the pipelines RoW (but more than 25 meters
away from it).
C ommunity Safety:
project vehicular traffic has been identified as the main area of risk for community safety. PERU LNGs Transport
Management Plan (TMP) includes the following provisions:
(i) supply communities affected by traffic with sufficient information on project-specific traffic patterns and an
opportunity to participate in finding solutions to any traffic-related problems;
(ii) ensure limitations on the size, number, frequency, and timing of project-related vehicles on specific roads, to
minimize any negative impacts;
(iii) control hazards through the establishment of speed limits, driver training, journey management protocols, and
appropriate signage; and
(iv) reduce impacts through effective emissions control, adequate vehicle maintenance, adherence to relevant
standards including noise emissions, and defined working hours.
The contractor will ensure communities are advised in advance of near term activities where transport issues have the
potential to impact local communities.
PERU LNG has constructed two underpass accesses to the LNG Plant below the Pan-American Highway to ensure traffic
safety and avoid disruptions generated by project-related traffic, especially traffic from the quarry site. During
preparation and operation of the quarry site, noise will be generated locally in the quarrying zone, particularly by
shallow blasting. Noise levels will be significant, though of short duration, and restricted mainly to the quarrying area.
Given that the quarry area is over 7 km from populated areas and because of a natural acoustic barrier formed by the
presence of intervening high ground, impacts to surrounding communities will be low. For the same reasons, noise
impacts related to traffic on the access road will also be low.
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Risks associated with natural gas pipeline breaks and explosions are of very low probability, however redundancy
monitoring and safety measures were incorporated in the design and the contingency plan; these will have provisions
for drills in which the potentially affected population will take part. The pipeline will be segmented with valves located
all along it, in order to minimize the amount of natural gas that could leak. A system using real-time leak detection
implemented by the SC ADA is used to detect a leak in the pipeline. The system detects variations in volume, pressure,
and temperature all along the pipeline. This detection system receives information from instruments installed in the
field, then processes, analyzes, and detects a leak, should one exist:
All pipeline valves have a rupture detection system, which automatically closes the valves if a leak is detected;
After the system has closed a valve, the valve inhibition system can be reset manually;
The rupture detectors report to SC ADA to provide immediate notice to the operation control center; and
The Leakage Detection Procedure outlines the procedure for locating a natural gas leak.
The following steps are taken when a leakage of considerable size is detected:
All valves (via SC ADA) will be closed automatically or remotely; and
All station entry and exit valves will be closed, so as to completely block each pipeline station.
This will completely stop natural gas transportation. As the natural gas moves from greater to lesser pressure, the
entire content of the section will leak through the puncture that caused the initial discharge. The volume lost is
calculated using the diameter of the pipe in the sector with the least thickness. As the NG is lighter than air, in the
event of a leak, it will dissipate into the atmosphere, and therefore the risk decreases dramatically in a short time once
the natural gas flow is stopped. The risk of explosion is relatively low as an ignition source is needed close to the
explosive atmosphere. This has happened on other pipeline projects only in some exceptional cases.
C ommunity Health:
An inoculation and vaccination strategy has been implemented by PERU LNG to protect local communities from the
possibility of outbreak of infectious diseases. Pollution control management and monitoring programs will minimize any
potential incidence of water-borne or water related diseases for communities along the pipeline RoW. PERU LNG has
established a C ode of C onduct for project workers that among other things, limits interaction between non-local
project employees and local communities. For example, non-local employees will be confined to the camps when not
on the work site. They will not be allowed to interact with local people or to visit local communities for recreation in an
effort to avoid disease transmission, including sexually transmitted diseases.
Security:
PERU LNG will communicate frequently with local communities regarding security issues using a participatory approach.
PERU LNG security arrangements will follow principles of proportionality, best international hiring rules of conduct,
training, equipping and monitoring of security personnel. None of the private security groups working for PERU LNG, or
contractors security staff, will be armed. Private security groups will observe the policies of PERU LNG regarding
ethical conduct and human rights, Peruvian law and international humanitarian law. All allegations of human rights
abuses by private security personnel will be recorded and properly investigated. If allegations against private security
providers are reported to the national law enforcement agencies, PERU LNG will monitor the status of the investigation
for full and proper resolution.
Performance Standard 5: Land Acquisition and Involuntary Resettlement:
Pipeline Land and Easement Acquisition:
The RoW land and easement acquisition process commenced in April 2006. C onstruction is due to commence in
January 2008 and restoration is expected to be completed by April 2010. By October 2007, the project had acquired
53% of the land and easement required by the project and was on schedule to acquire all land for construction. A
PC MP has been prepared which includes procedures to conduct consultations, appraisal, negotiation, and compensation
for land acquisition in the pipeline RoW, and also for use of local roads, infrastructure, and natural resources such as
water, rock, timber, and other removable resources. The PC MP includes a Monitoring and Evaluation Framework with
specific indicators aimed at measuring livelihood restoration. PERU LNG is conducting an additional household baseline
survey to form the basis for ongoing monitoring and to allow for a conclusive PC MP C ompletion Audit to be conducted
approximately 36 months after completion of construction.
The pipeline routing was designed to minimize impacts and no physical resettlement is expected. To date, 61 micro reroutings have been implemented to avoid impacts such as resettlement, disruption of water supply and irrigation
channels, and impacts to archeological sites. Most of micro re-routings have been implemented in areas utilized by
communities that have been identified as highly or moderately vulnerable. In general, expected impacts of land take
for pipeline construction on directly affected households and communities are relatively limited (mostly short-term
temporary disruption of farming, herding, and grazing activities). Although physical resettlement is unlikely, in case it
becomes necessary PERU LNG will develop a Framework Resettlement Action Plan in accordance with the IFC
Performance Standard 5, favoring land-for-land approaches as detailed in the attached Action Plan.
The most common land acquisition activity will be easement acquisition for the RoW. The RoW strip for the construction
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period (3 years) is 25 meters wide along the pipelines 408 km length (1,020 ha in total extent). During the operation
period (37 years after construction), the RoW strip will be 20 meters wide (816 ha in total extent). However, during the
operation period land users may make use of the surface of the soil in the RoW, with the following restrictions:
a) only erecting buildings or fences with PERU LNGs authorization;
b) only growing farm crops with shallow roots; and
c) not planting trees in a 15 meters wide strip within the center of the RoW.
A limited number of sites will experience permanent loss of use of land that is required for the above ground
installations, totaling a combined area of 2.6 ha.
Approximately 66% (673 ha) of the land within the pipelines RoW is community owned, 25% (255 ha) is owned by the
State and 9% (92 ha) is privately owned. The RoW traverses the Departments of Ayacucho, Huancavelica, Ica, and
Lima and intersects 1,580 land parcels belonging to 34 Rural Andean C ommunities and 36 Annexes (sub-divisions of
communities), including approximately 1,296 possessors (community members with land use rights but not property
ownership rights), 187 individual owners, and the State.
C ompensation procedures and valuation methodologies are described in the PC MP, which has been developed and
disclosed in accordance with local regulations and IFC Performance Standard 5 guidelines. In addition, PERU LNG has
developed a Guide to Land and Easement Acquisition and C ompensation a brochure which has been distributed
amongst affected communities describing the process in Spanish and Quechua. PERU LNG is making efforts to acquire
all easements through negotiated settlements thereby avoiding the need to establish easement rights by administrative
means. C ompensation for land easement is paid to land owners. C ompensation for crops and improvements are paid
to those parties currently using the land, including land owners, possessors, and including persons with no recognizable
legal rights occupying the RoW prior to the cut-off date. Valuation of properties, improvements, and crops are based
on full replacement cost assessed by both the Ministry of Housing and by a private contractor (Meridian Proyectos
S.A.C ) using land experts and agronomists. When these two appraisers offer different estimates of values, PERU LNG
accepts the higher of the two figures to start the negotiation process.
Those households directly affected by land acquisition for pipeline construction are being engaged individually and in a
culturally appropriate manner before, and during, the negotiations process. These households are provided the
opportunity to obtain advice from external independent parties of their own choosing (e.g. local leaders, NGOs, family
members). The negotiation process is duly documented. PERU LNG has also defined a specific grievance mechanism
for land and easement acquisition issues. PERU LNG will identify and coordinate suitable means to address outstanding
issues where the TgP pipeline is in close proximity to the PERU LNG pipeline and where these issues also affect PERU
LNGs PAPs. This is in an effort to learn and benefit to the greatest degree possible from TgPs experiences in dealing
with landowner issues and challenges with re-instatement.
PERU LNG makes provision for assistance programs for PAPs on a voluntary basis aimed at enhancing opportunities
arising from the compensation process, through coaching in decision taking to maximize use of compensation for
livelihood re-establishment, to improve farmland productivity and cattle husbandry, or to develop alternative income
generating activities. As a requirement of the Action Plan more detailed plans will be prepared to provide independent
advice to local households and for livelihood restoration assistance. All communities in the RoW will also be considered
for PERU LNGs Framework Plan for Investment in C ommunity Development (FPIC D).
Fishermen C ompensation Program:
For safety reasons, PERU LNG and contractors must restrict access to the beach area adjacent to the Pampa Melchorita
Plant site, and to the sea around the marine facilities. This will divide a 28 km section of the beach in two, preventing
some movement of fishermen who occasionally walk along the beach seeking fishing sites. The restrictions will result
in some negative impacts on the livelihoods of local small-scale artisanal shore fishermen from the cities of C hincha
and C aete. However, realizing the importance of the beach to these artisanal fishermen, PERU LNG has posted
C ommunity Relations Officers (C ROs) at either end of the restricted zone. The C ROs coordinate access by fishermen
to the beach with the construction supervisors.
These impacts were identified during the ESIA process and PERU LNG has engaged consultants to conduct
complementary social baseline studies and to use participatory means to develop a Fishermens C ompensation
Management Plan (FC MP) in accordance with local and IFC Performance Standard 5 requirements. The FC MP includes,
among other aspects, the description of the measures adopted to avoid and minimize economic displacement, the
identification of impacts and corresponding compensation and mitigation measures, and a Monitoring and Evaluation
Framework with specific indicators aimed at measuring livelihood restoration and satisfaction.
A C ompletion Audit of the FC MP will be conducted and PERU LNG will consider that livelihood restoration is completed
when the catch-effort ratio has been restored and/or alternative sources of income have been secured. The
C ompletion Audit is a requirement of the attached Action Plan.
To date approximately 700 people and 14 fishermen organizations, including individual non-affiliated fishermen, have
been engaged since the early stages of the process and have been participating in the identification of affected groups,
potential impacts and mitigation alternatives, such as: i) technical assistance to strengthen productive capacities,
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improve catch, improve storage, etc.; ii) support for the sustainability and effectiveness of fishermens associations;
and iii) support for groups of affected fishermen, such as provision of fish storage facilities; and scholarships for the
sons and daughters of fishermen. PERU LNG will select jointly with the fishermen which activities to implement through
experienced partners (such as locally experienced NGOs).
Regular meetings are conducted with these groups and the process is being fully documented and supervised by local
and national authorities. In addition, representatives from the fishermens associations have been participating in the
Marine Monitoring process being conducted by PERU LNG for the construction of the marine facilities.
Performance Standard 6: Biodiversity C onservation and Sustainable Natural Resources Management:

Biodiversity baselines of the different facilities locations were described and assessed as part of the three ESIA
reports. In the case of the pipeline a second study called Ecological Field Survey (EFS) provides a more detailed
survey and assessment and complementary preventive and corrective action to those proposed by the ESHS
management plans.
LNG Plant and Quarry:
No critical habitats have been identified in the area occupied by the LNG Plant, the quarry and the quarry access road.
They do qualify however as natural habitats. The only impact identified is the loss of Tillandsia latifolia, a small
bromeliad (members of the pineapple family) which form carpet patches or mats in coastal desert areas of Peru and
north of C hile. Vegetation clearing will be a significant impact to the sparse plant coverage during construction.
Tillandsia latifolia is not classified as endangered and its presence at the plant and quarry sites is not considered an
indication of the presence of a critical habitat. The company has plans to establish a nursery area to supply this
species for replanting purposes. Specifically, at the quarry area, similar considerations apply to some cactacea species
(gen. Haageocereus and Nolana). Impacts on fauna within the LNG Plant and quarry area of influence are considered
moderate, but of short-term. Lower mobility animals such as some reptiles and amphibians, would be more vulnerable
but the impact will not threaten their populations.
Marine facilities:
The ESIA for the LNG Plant states that there are no formally designated marine critical habitats and no sea grass
communities or any other sensitive biological community within the project area. Intertidal and subtidal planktonic and
benthic communities will be affected by dredging activities; however, dredging impacts were assessed as moderate.
The company has developed a Dredging C MP to minimize the potential impacts and a monitoring plan to control
turbidity and physical and chemical properties of suspended sediments.
Pipeline:
The baseline biological study has identified a number of sectors of the pipeline as being ecologically sensitive. In
general terms, the most sensitive ecosystems are the dry forest river valleys of the Apurimac and Mantaro basins, the
western Andean scrublands and cactus formations, the hydromorphic habitat islands of the Pisco sand plains, and the
riverine ecosystems of the coastal plain.
The EFS, completed in May 2007, identified 14 Ecological Landscape Units (ELUs) within the 50 meter width of the 408
km pipeline RoW, based on bio-geographical information and ecological criteria. Habitats within every ELU were
identified by association with specific vegetation units, and relative sensitivity of each habitat was determined by
considering the species sensitivity. Species sensitivity was determined for each species documented by the EFS on the
basis of four characteristics:
-
protected status;
geographic distribution;
use by local communities; and
mobility (ability to flee from a disturbance).
The overall results in terms of habitat sensitivity along the RoW can be found in the Sensitivity attachment under "Full
Documentation":
The designation of High Sensitivity Habitat Type used by the EFS report is relatively closely aligned with the
designation of critical habitats of Performance Standard 6. The EFS identified 7 highly sensitive habitats that are
described as follows:
1. Torobamba River Valley C ultivated Areas.
Patches and corridors of native vegetation are observed between the crop fields. These patches contain listed and
endemic species typical of dry forests and scrublands of the Apurimac Dry Forest System. Among these species are
the endangered cactus Corryocactus quadrangularis and the critically endangered rosaceous shrub Kageneckia
lanceolata.
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2. Torobamba River Valley Thorny Scrub.

Higher up the valley slopes, patches of thorny scrub harbor the critically endangered rosaceous shrub Kageneckia
lanceolata and other sensitive dry forest and scrub plants, as well as the endangered white-tailed shrike tyrant, a bird
of the flycatcher family.
3. Yucay River Valley Resinous Scrub.
The dry Yucay River Valley contains patches of native vegetation belonging to the Mantaro Dry Forest System,
including populations of the endangered cactus Corryocactus quadrangularis and the vulnerable cactus Echinopsis
peruviana puquiensis.
4. Pisco-Ica Watershed Divide Mixed and Thorny Scrub.
The upper slopes of the western Andes which drain to the Pacific Ocean support highly adapted plant species such as
the critically endangered composite shrub Chersodoma arequipensis and the regional endemic Aequatorium tovarii.
Also, these habitats may support populations of the endangered rufous-breasted warbling finch, as documented by the
ESIA.
5. C oastal Bat Hills Desert Scrub and C olumnar C acti.
The lower desert slopes of the Andean foothills support sparse yet diverse vegetation with various threatened and
endemic species of cacti and shrubs, including the endangered Cleistocactus acanthurus. This habitat supports
populations of the critically endangered long-snouted bat (Platalina genovensium), a species that feeds exclusively on
the pollen and nectar of night-blooming cacti.
6. Pisco Sand Plains Hydromorphic Islands and Lagoons.
Among the sand dunes south of the lower Pisco River, there are small oases of wetland vegetation, often surrounding
small permanent waterbodies such as the Bernal and Moron lagoons. These unusual habitat islands support fauna that
could not otherwise survive in the surrounding desert environment. For example, the vulnerable slender-billed finch,
an endemic coastal desert bird that nests only in hydromorphic thickets and riparian areas. While not containing any
highly sensitive species, these habitats are considered to be highly sensitive due to their uniqueness, limited
geographic distribution, presence of various medium sensitivity species, and loss of similar habitats in the region to
agricultural conversion.
7. Ica-Lima C oastal Plain Riverine C orridors.
The coastal plain of south-central Peru is traversed by various highly seasonal rivers and streams. The natural
vegetation along these streams was formerly a dense riparian woodland and thicket, but these have largely been lost
with the development of irrigated agriculture in the narrow river valleys. Only small fragments of these habitats
remain. The rivers themselves have been affected by agriculture and urbanization. Nevertheless, the Pisco River
supports a critical species from a socioeconomic perspective, the freshwater river shrimp Cryphiops caementarius, an
important fishery species with an important contribution to the local economy.
Of particular concern are the Andean wetlands or bofedales which the EFS considers as a component of the identified
ecological landscape units. Bofedales are found throughout Perus C entral Andes and have high biological sensitivity.
The ESIA reports that the bofedales cover approximately 6,330 ha of the corridor (4.15% of its total) and 30.8 ha in
the RoW (2.55%). The bofedales are described as peat bogs located in depressions and undulations on the Andean
plateau, and in valleys containing hydromorphic soils perennially saturated with water, small lakes and runoff
channels. These peat bogs are recognized sensitive features of the region and are of social, hydrological, and
ecological value. These are commonly the only source of water during the dry season for the local population,
domestic livestock, and wild life. Peat bogs occur in seven of the fourteen ELUs, east of kp 250 which forms the edge
of the Andean high plains and ridges. The peat bogs are hydrologically critical for their high water retention and
storage capacity, serving as sources and regulators of water for the lower reaches of the basins. Their biodiversity
significance can also be demonstrated by the presence of locally adapted species, e.g. small orchids of the genus
Myrosmodes occupy some peat bog wetlands (cataloged by INRENA as near threatened). Mineral-rich peat bogs are
the sole habitat of the white-bellied cinclodes (Cinclodes palliatus), an IUC N-endangered, and INRENA-critically
endangered bird, endemic to the central Peruvian Andes. Therefore the bofedales are considered critical habitats.
None of the critically endangered plant or animal species has a distribution restricted to the PERU LNG Pipeline RoW
area of influence and the construction and operation of the PERU LNG Pipeline will not affect the routes of any
migratory species.
The bofedales will require special consideration and measures to avoid and minimize impacts by construction works,
including accelerated construction work programs to limit the period of disturbance and to protect the topsoil and the
natural vegetation during the construction phase, in order to restore the habitat as close as possible to its prehttp://ifcext.ifc.org/ifcext/spiwebsite1.nsf/DocsByUNIDForPrint/00DB06A86B84D253852576BA000E2AF0?opendocument
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construction condition. The Action Plan includes a company commitment to avoid the construction of temporary
facilities at bofedales unless there are no other feasible options.
The EFS proposed a set of actions and procedures to be implemented during the pipeline construction that will ensure
that there are no adverse impacts to the habitats to support their current species abundance and composition (even
when some individuals would be sacrificed) so that no measurable impacts on biodiversity will be noticed. The
recommendations from the EFS, along with some good practices for biodiversity conservation, were included in the
Ecological C MP and the Biorestoration C MP.
Overall, PERU LNG seeks to restore all habitats to pre-construction condition to the extent practicable, and will take
actions appropriate to protect threatened species during all phases of the project. Monitoring of biodiversity during
construction and operation of the project will be carried out by PERU LNG to ensure that the project does not result in
any significant adverse impacts on ecosystems, habitats, and species.
PERU LNGs Ecological C MP is a preventative plan that covers flora and fauna protection, wetlands, water crossings,
top soil management, and pollution protection and was designed to interact with the Biorestoration C MP. This Plan also
addresses planning/design/pre-construction stages of the construction phase. The scope of the plan at field level
includes the RoW, borrow pits, roads, shooflies, pipeyards, campsites, storage areas, and any other off-RoW sites. The
main mitigation measures include: taking cognizance of biological seasonal factors (e.g. mating, nesting, and
migration) in planning construction activities, pre-construction surveys, pre-clearance surveys, wetland crossings, river
crossings, cross-over above pipeline trenches, noise abatement, flora protection, animal protection, signage
(prohibition of fires, hunting, fishing, and collecting plants or animals). The Plan contains measures to protect streams,
lagoons, and bogs along the RoW as well as procedures for the protection and maintenance of topsoil and natural
vegetation during the construction phase, in order to restore the habitat as close as possible to its pre-construction
condition.
The Biorestoration C MP is complementary to the Ecological C MP and is specifically designed to mitigate impacts on
flora and fauna. The plan describes the actions to be taken for physical reinstatement and biological restoration of the
RoW, borrow pits, access roads, shooflies, pipeyards, and campsites.
The main objectives are:
- Restore the land affected by project activities along the RoW, campsites, surplus material depots, access roads, and
other work areas;
- Protect the topsoil and restore vegetation cover as quickly as possible after construction in order to stabilize the
ground surface, avoid soil erosion and mass wasting, and protect pipeline integrity;
- Return the ground to its original pre-construction condition to re-establish original biodiversity, natural habitats or
human land use activities; and
- Promote re-vegetation as quickly as possible to protect the soil against erosion and safeguard sensitive ecological
habitats, such as water bodies and wetlands, against sediment deposition.
The company has not yet put together the corporate Ecological and the Biorestoration Management Plans which are
parent documents for the C ontractor Plans. While the existing C MPs satisfy the needs for the pipeline construction
phase, the corporate plans will be useful to guide the development of new C ontractors Ecological or Biorestoration
ESIPs for the operation and maintenance phase, or the building of new facilities. The Action Plan has provisions for the
completion of the above mentioned PERU LNGs Ecological and Biorestoration Management Plans.
A detailed Biodiversity Monitoring Plan (BMP) is currently being prepared. PERU LNG is currently working with some
national and international scientific and institutional communities to design a BMP that is consistent with accepted
standard international monitoring and assessment practices, and also to ensure that the results of the monitoring are
made available in an open and timely fashion to researchers and policy makers, in addition to the general public and
local communities.
Field monitoring will be performed by Peruvian consultants and researchers, with PERU LNG oversight and international
expert quality control and verification. Preparation of a final detailed version of the BMP is a requirement of the Action
Plan.
Invasive alien species:
The Biorestoration C MP for the pipeline proposes the use of native or naturalized species favorably adapted to the
local environment without being invasive or intrusive. Additional detailed evaluations will be carried out as part of the
C orporate Biorestoration Management Plan to make sure the most appropriate species are selected along the RoW,
based on such aspects as topographical conditions, precipitation, and erosion risk areas.
Re-vegetation of the RoW will comprise natural re-vegetation based on the seed bank preserved within topsoil
stockpiles, that will be prepared during the preliminary clearing and grading activities of construction, and also assisted
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re-vegetation using a combination of naturalized species from commercial sources and native species collected from
the pipeline route and surrounding area. Assisted re-vegetation will aim to be representative of the natural and original
biodiversity of the area prior to construction. There will be no use by of non-native, invasive species by contractors in
any reinstated areas.
Performance Standard 7: Indigenous Peoples:
- Rural Andean C ommunities (RAC )
As stated in Performance Standard 1, the Andean section of the proposed pipeline crosses the departments of
Ayacucho and Huancavelica and involves 34 RAC s and 36 subdivisions (annexes) of those communities. C ommunal
land ownership and community use of natural resources (e.g. pasture lands), and traditional decision-making
arrangements are common in RAC s. Quechua and Spanish are their spoken languages (both recognized as official by
the Peruvian C onstitution). Most RAC s are poor, vulnerable, and dependent on small-scale farming, herding, and
grazing and agricultural wage labor for their livelihoods. RAC s have different levels of access to social services, roads,
and markets. The Peruvian legal framework recognizes and protects the land rights and cultural particularities of the
RAC s.
The identification of RAC members as indigenous peoples is a complex issue that is subject to on-going debate, given
the different levels of integration of these communities into the broader society and the fact that generally the
members of these communities do not self-identify as indigenous. However, given the above described cultural and
socioeconomic characteristics of the RAC s, the project will treat them in accordance with the requirements of IFC s
Performance Standard 7.
Accordingly, PERU LNG has prepared a Rural Andean C ommunities Management Strategy (RAC MS) aimed at
minimizing and mitigating potential impacts and enhancing benefits in accordance with Performance Standard 7
objectives. The RAC MS includes culturally appropriate provisions for: minimizing impacts and mitigating unavoidable
impacts; continuous and on-going information sharing and consultation; free and easily accessible attention to
grievances; preferential hiring of local people; and compensation at full replacement cost for the use of land and other
resources (refer to Land Acquisition and Involuntary Resettlement section) as required in Performance Standard 1,
Performance Standard 5, and Performance Standard 7. PERU LNG has also included specific considerations regarding
RAC s in other key documents of its ESHS-MS (i.e. Pipeline C ompensation Plan, Grievance Procedure, Local Hiring and
Purchasing Plan, Framework Plan for Investment in C ommunity Development, Stakeholder Engagement Plan, and
C ultural Heritage Management Plan).
The process of community engagement described in Performance Standard 1 has been designed to be culturally
appropriate and to enable an on-gong process of free, prior, and informed consultation with participation by local
community representative bodies, and inclusive of both women and men and various age groups. Agreements
concerning the nature of the on-going consultation and land acquisition process were signed with each community
representative body prior to detailed discussions with land users. Specific measures have been taken to minimize
impacts, including micro-rerouting after discussion with communities to avoid built structures, cultural property and
other sensitive areas.
In addition to the ESIA, PERU LNG has conducted a Social Vulnerability Analysis for the RAC s with input from local
experts. The analysis was based on potential impacts, recovery capacity, use of resources, and socioeconomic
standards, to design specific procedures for those that were found to be most vulnerable. Six RAC s were found to be
highly vulnerable; 23 to be of moderate vulnerability and 4 of low vulnerability. There is still one RAC under analysis.
These communities were consulted during the ESIA process and their concerns addressed, including small-scale
pipeline re-routes to avoid impacts on sacred sites, wells, and houses (refer to C ommunity Engagement section). As a
requirement of Performance Standard 7, and as part of the Rural Andean C ommunities Management Strategy
(RAC MS), a socio-cultural assessment will also be conducted to identify if there are any cultural particularities,
including sacred sites and land uses, in these communities that would make them more vulnerable and to define
mitigation measures accordingly (refer to attached Action Plan).
As described in Performance Standard 1, PERU LNG has developed a Framework Plan for Investment in C ommunity
Development (FPIC D), and this involves a participatory planning approach to ensure free, prior and informed
consultation with affected communities, and their informed participation in identifying opportunities for culturally
appropriate development benefits. This consultation process will be followed in the on-going detailed planning and
implementation of development projects.
As part of the Action Plan requirements, a C ommunity Environmental Monitoring program will be prepared to ensure
participation of the community in verifying compliance with environmental and social standards and commitments.
C ommunities will choose their own representatives, who will be trained to monitor the environmental and social
impacts of the project in their area, and they will provide feedback to their communities.
Performance Standard 8: C ultural Heritage:
LNG Plant:
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Archaeological surveys of the Pampa Melchorita LNG Plant site undertaken prior to construction encountered no
remains or artifacts. A C ertificate of Non-existence of Archaeological Remains (C IRA) was issued by the INC (Peruvian
National C ultural Institute) on 8 January 2003. During construction of the LNG Plant one isolated burial site with
skeletal remains was encountered as a chance find and this discovery was appropriately reported and rescued by the
INC . Ongoing construction work continues to follow protocols for chance finds.
Quarry:
C ultural resource management activities are almost complete in the area of the quarry as well, except for possible
chance finds, and a small rescue project is currently underway along the haul road which proved unavoidable. In the
area of the quarry and along the quarry access road, many archaeological sites were identified during the ESIA field
surveys. An ancient road was identified and marked to protect it during the construction phase. The access road was
rerouted as much as possible to avoid these sites. The INC has approved the archaeological assessment and provided
PERU LNG with the required C IRA certificate. Subsequently, PERU LNG has provided monitoring reports to the INC .
Pipeline:
The area surveyed for the purpose of the ESIA is the pipeline RoW and an adjacent 50 meter wide strip. Additional
sites identified (through bibliographic review or previous projects) have also been included within the ESIA corridor.
Archaeological information from the TgP project was used as a reference point due to its proximity to the future PERU
LNG pipeline.
A total of 465 archaeological sites were identified in the corridor during the ESIA. Of these, 132 were sites previously
recorded during construction of the TgP pipeline and have been included in this study due to their proximity to the area
of direct impact. The remaining 333 archaeological sites were recorded during field work for route selection. Of the
total sites identified, most were avoided during the route selection but 177 are located directly within the current route.
These 117 sites are being rescued (totally or partially) according to the INC requirements. There are also 170 sites
adjacent to the current RoW. A total of 156 sites were registered adjacent to access roads. Along the pipeline route,
detailed and well organized archaeological studies are currently ongoing with the intent of mitigating the sites that
cannot be avoided. It is expected that INC will issue the C IRA before the end of 2007.
PERU LNG and contractor archaeological work is done in consultation with area communities with public meetings
attended jointly by PERU LNG C ommunity Relations staff and the archaeologists.
- C ultural Heritage Management Plan:
PERU LNG has prepared a C ultural Heritage Management Plan to describe the management tools and procedures that
will be applied during the construction phase. PERU LNG currently employs an archaeologist for the Plant and the
quarry areas who work with the contractors during ground disturbing construction activities. This arrangement is
according to the guidelines established by the INC .
Three full-time field based archaeologists along the pipeline RoW, supervise the handling of any unexpected finds to
prevent damage. In the event that any artifacts are found, construction work will be stopped to allow for inspection
and appropriate notifications in accordance with INC requirements. A PERU LNG policy that no worker may possess or
remove an archaeological artifact from the project area will be strictly enforced. Technical staff of PERU LNG and its
contractors will regularly attend seminars to learn to recognize archaeological material, how to care for it, and the
steps to take in the event of a chance find.
The pipeline C ontractors C ultural Heritage ESIP will identify, at a minimum, the following:
C lose coordination with PERU LNG pipeline archaeological staff;
The monitoring process that will report and record such chance finds;
Internal and external finds recording and notification procedures to be followed;
C ontractor actions that may be required to minimize impacts to the chance finds, and the relevant responsibilities of
the projects personnel; and
C ontractors C hance Find Procedure.
The Pipeline contractor staff counterparts will include a project C ultural Heritage Manager and a Field C ultural Heritage
Manager/Supervisor. The contractor will also ensure that there are adequate field-based cultural heritage officers to
undertake monitoring, especially during intrusive or earth-handling construction activities such as clearing and grading,
topsoil stripping, and trenching.
Any proposals by the contractor to undertake works outside the project-defined RoW footprint (e.g. for borrow pits,
access roads and shooflies, rock disposal sites, topsoil, subsoil and temporary rock storage areas especially at steep
slopes, side slopes and river crossings) require the contractor to consult with INC and obtain a C IRA for each area.
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C ultural Heritage C hance Find Procedure:

PERU LNG has prepared a procedure to manage late chance finds and this forms part of the C ultural Heritage
Management Plan. In the case of a C hance Find, activity will cease and the area will be marked for avoidance;
supervisors, field personnel, and project and government cultural heritage representatives will be notified; and
appropriate treatment strategies developed. Site treatment scenarios to be considered will include preservation in
place through rerouting or specialized construction techniques, and rescue excavations in advance of additional
construction work, if avoidance is not possible. Only after all treatment work is agreed and any required excavations
carried out, will project activity be allowed to resume in the area.
Upstream Facilities Assessment:
The Upstream Facilities are not funded as part of the IFC s financing, and are composed of Block 88, Block 56, the
Malvinas Gas Separation Plant, and the TgP pipeline facilities. Under Performance Standard 1 Social and Environmental
Assessment and Management Plan, IFC has determined that these facilities are not associated facilities because they
do not meet the definition which requires that associated facilities that are not funded as part of the project (funding
may be provided separately by the client or by third parties including the government) and whose viability and
existence depend exclusively on the project and whose goods or services are essential for the successful operation of
the project. In other words, these facilities would exist even if the PERU LNG project was never constructed and
implemented. However, as there might be significant business risks for the PERU LNG project arising from actions or
non-performance of these upstream facilities, and as part of IFC s due diligence process they have been examined on
a risk basis.
In the event that a risk is considered as high for the project, and when the company has control or influence over the
actions and behavior of the third party, IFC requires the company to collaborate with the third party to achieve the
outcomes consistent with the Performance Standards (IFC s Policy on Social and Environmental Sustainability).
Pluspetrols and TgPs operations (Block 88, Block 56, Malvinas Gas Separation Plant, and TgP pipeline) were assessed
through a review of environmental and social issues and their related relevant management actions. The focus of the
review was limited to those activities which may cause (or contribute to cause) significant impacts and constitute a high
risk, and did not cover in detail all other potential environmental and social impacts and their mitigation plans for the
entire scope of the upstream projects.
The review involved interviews with Pluspetrol and TgP key personnel; field visits (one in 2006 and two in 2007); and
the review of environmental and social impact assessments for upstream facilities and other documents provided by
the project, including recent independent evaluations and audits of the C amisea project.
Pluspetrol, the operator of Block 88, Block 56, and the Malvinas Gas Separation Plant (herein referred to as the
Operator) has implemented Environmental, Health and Safety, and Social Management Plans in accordance with ISO
14001 and OSHAS 18001 standards and international best practices. The review of the Operators management system
was limited to an assessment to identify significant risks and thus did not cover every aspect in detail. The Operators
management system has been in operation for several years and consequently has evolved and improved its control
over social and environmental impacts. The operational aspects of environmental, social, health and safety
management have a sound level of supervision and control. The Operator has C ontingency Plans that are adequate to
deal with different possible emergency scenarios. This management system includes a plan to address biodiversity
issues based on biological information obtained from the current Biodiversity Monitoring Program (BMP). Social issues
and impacts on local indigenous peoples are complex. The Operator has developed a detailed Social Relations Plan and
assembled an experienced team of social development specialists to work with local communities using participatory
methodologies to address these issues and impacts.
Two high risk aspects were identified from the review, namely existing and potential impacts to the biodiversity and
indigenous peoples of the area. These issues are discussed in the following sections. PERU LNG, working with the
Operator, will undertake best efforts to address these risks by building on existing activities as well as mitigation
measures as detailed in the attached Upstream Facilities Action Plan, which has been developed by PERU LNG with
extensive consultation and input from the Operator.
Block 56 and 88:
The Block 56 field license area is located in the Lower Urubamba Region of the C usco Department in southeastern
Peru, and has a total surface area of 58,500 ha and comprises two natural gas fields, Pagoreni and Mipaya. Block 56 is
adjacent to the existing Block 88, and therefore has many similar biophysical characteristics.
The majority of the Indigenous Peoples of the Machiguenga population within Block 56 is located in settlements along
the banks of the Urubamba River. These communities hold legal land titles to about 82.5 % of the Block. Of the
remaining land, 12.5 % is comprised of lands reserved for the Government and this area is known as Shintorini, a
small portion of which is occupied by colonist farms. The remaining 5 % of the area is made up of various water
bodies, mainly the Urubamba River.
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The natural gas reserves of the area, (including reserves in Block 56 and 88) are located in the rainforest of the
Amazon Basin, a globally recognized center of biodiversity because of its biological richness, high number of endemic
species, and the presence of threatened species.
The BMP for 2006 indicates that the estimated project footprint for Block 56 is as follows: 63 ha used for seismic lines;
8.8 ha for heliports and camps for seismic development; 14.3 ha for Pagoreni A (7.1 ha for the well pad and 7.2 ha for
the surrounding disturbed area); 14.4 ha for Pagoreni B (6.6 ha for the well pad and 7.8 ha for the surrounding
disturbed area); 0.85 ha for Pagoreni heliport and base camp; 59.7 ha of flowline; 54.7 ha for additional facilities and
earthworks associated with the flowline (e.g. pipeyards, shooflies, directional crossings). Excluding the seismic lines
(which have been completed), the total project footprint is 153.1 ha. This represents 0.26 % of the total 58,500 ha
concession. The Lower Urubamba Region is part of the 74.9 million ha Southwest Amazon Moist Forest ecoregion,
which extends over much of lowland eastern Peru, northern Bolivia, and western Brazil.
In Block 56 the Pagoreni field is being developed by directional drilling of wells from two platforms (Pagoreni A and B)
and the development of a flowlines system from the natural gas platforms to the cryogenic separation facility located
in the Malvinas Gas Separation Plant. The flowlines subproject, with a total length of 25.6 km of 24 inch pipe, will be
constructed from the Malvinas plant to the two drilling platforms. The NGL generated from the separation of the natural
gas from Block 56 will commence production in April 2008, more than two years before PERU LNG natural gas is
produced and transported. Once the PERU LNG facility is operational, natural gas from Block 56 will serve as feedstock
to the PERU LNG Plant, but in the meantime natural gas will be re-injected.
Block 88 comprises 120,000 ha and two fields, San Martin and C ashiriari, and is located adjacent to Block 56. Both
blocks are located between two areas recognized for their high bio-diversity: the Machiguenga C ommunal Reserve on
the West and the Manu National Park to the East.
C urrently, Block 88 production is generated from the San Martin field, which started producing hydrocarbons (NGL and
natural gas) in 2004. This field has 8 wells, 5 for NGL and natural gas production and 3 for natural gas injection. The
drilling operations have been developed using the offshore-inland concept where all wells were drilled as clusters
using only two wellpads and equipment and personnel accessed the site via helicopter to avoid the need for any access
roads.
As part of IFC s risk-based review, all aspects of the Upstream Facilities activities have been examined, and it has
been determined that high risk issues associated with impacts to the biodiversity and indigenous peoples in Block 88
and 56 have high significance to the PERU LNG project. The Operator of Block 88, 56, and the Malvinas Gas Separation
Plant has in place programs to address these two areas of concern, including a BMP and various indigenous peoples
programs. Direct impacts identified that have a high risk include:
(i) invasive species used for cover control in the Malvinas Gas Separation Plant with the potential of spreading to other
areas;
(ii) potential loss of fauna and flora in Blocks 88 and 56;
(iii) potential erosion and sedimentation during construction of flowlines;
(iv) socio-economic and cultural transformations; and
(iv) potential impacts to hunting and fishing livelihood activities.
The Operator of Block 88, 56, and the Malvinas Gas Separation Plant has developed plans to mitigate and monitor
these aspects. The direct, indirect, and cumulative impacts will require additional studies and assessment to show that
no significant impacts have resulted from the project activities.
The Operator of Block 88 and 56 has developed and is in the process of implementation of a BMP which is being
carried out by a group of experts in the various fields of biodiversity, including Universities from Peru, Argentina, and
Spain. The gathering of data and analysis is conducted every year and a report is then prepared and made available
through the BMP website. Early results indicate that Block 88 and Block 56 activities have not had a significant impact
to the biodiversity in the direct area of influence; however, the report also presents recommendations for actions to
minimize further impacts.
Regarding indigenous peoples in Block 88 and 56, a number of efforts have been underway for several years
regarding consultation and provision of development opportunities for indigenous peoples in the rainforest. Despite
these efforts there are currently some negative perceptions amongst some local stakeholders and outsiders
concerning the consultation process, benefits, and community development in the area. In order to address these
issues and reduce risk for local people and the project, the Operator will integrate all ongoing efforts in Block 88 and
56 into a robust Indigenous Peoples Development Plan (IPDP) according to IFC s Performance Standard 7 on
indigenous peoples.
This Plan will seek to improve existing mechanisms and procedures to ensure that on-going consultation concerning
future activities will allow for prior, free and informed consultation (FPIC ), and that indigenous peoples are actively
engaged in development projects through participatory methodologies to maximize opportunities and benefits. The
IPDP will also include long term objectives to:
i) ensure adequate on-going coordination and synergy among existing development projects;
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ii) provide an integrated development framework to enhance positive impacts and attract and facilitate input from a
wide range of relevant stakeholders (local people, community based organizations, government, non-governmental
organizations, international aid organizations, etc);
iii) identify potential inputs and projects and provide an action plan with targets, schedule, budget, and responsibilities;
and
iv) establish a monitoring and evaluation framework to assess outcomes and provide feedback.
PERU LNG with assistance from the Operator of Block 88, Block 56, and Malvinas Gas Separation Plant has developed
an Upstream Facilities Action Plan which addresses these issues and which will enhance the current programs for
biodiversity protection and indigenous peoples.
The Malvinas Gas Separation Plant:
The raw natural gas production from Block 88 and Block 56 will be transported to the Malvinas Gas Separation Plant
located 50 km away from the natural gas wells. The plant is located at the Malvinas site on the eastern bank of the
Urubamba River, but outside the boundaries of Blocks 88 and 56.
The Malvinas Gas Separation Plant will require additional capacity to process the natural gas delivered by Block 56.
The Malvinas Gas Separation Plant expansion activities are planned within the currently occupied property and
footprint. There will be no impact to the local flora and fauna as a result of the expansion. The Operator of Block 88,
Block 56, and the Malvinas Gas Separation Plant has management plans in place to address any potential impacts that
may result from these activities.
Increased river traffic is one of the activities that represent a potential significant risk in regard to disturbance to
aquatic fauna. River traffic will be mainly concentrated on the Ucayali and Urubamba Rivers due to their location in
relation to the plant. The Operator has a Fluvial Transportation Management Plan in place. This includes a River
Transportation Surveillance Program, which monitors the convoys (barges plus a tugboat) used by the Operator in the
Lower Urubamba Region, both for upstream and downstream trips. In addition, local communities have their own
surveillance program which includes community monitors that report the compliance to the fluvial transport
procedures.
With the exception to those impacts related to the river traffic increase, all other ESHS impacts related to the Malvinas
Gas Separation Plant expansion are of local, temporary, and manageable nature. The impacts associated with an
increase in river transportation are significant, but temporary, because they are mostly limited to the construction
phase. The Malvinas Gas Separation Plant Operator has developed management plans and monitoring programs to
minimize the potential impacts on aquatic fauna.
TgP Pipeline:
The natural gas is transported by TgP from the Malvinas Gas Separation Plant. The TgP natural gas export pipeline is
700 km long, commencing at Malvinas in the C uzco Department and traverses Ayacucho, Huancavelica, Ica and Lima
Departments. The rainforest portion of this pipeline (from C uzco to near Ayacucho) was oversized to avoid the need of
new pipelines if the natural gas demand increased. This is the section of the pipeline (approximately 200 km long) that
will service PERU LNG up to Ayacucho. From this point, a new 408 km long 34 inch pipeline will be constructed and
operated by PERU LNG to provide the required natural gas to the LNG Plant. The TgP natural gas pipeline does not
require any new facilities to transport the natural gas from Block 56, and therefore no additional footprint is triggered
from the needs of the PERU LNG project.
Though not directly associated with the PERU LNG project it is noted that TgPs NGL are transported along the same
RoW as the TgP natural gas pipeline. TgPs NGL pipeline has suffered six leak events of different magnitudes during the
operating period since 2004. The leaks to date have been in the rainforest portion and, apart from one leak caused by
a welding failure, all the rest were related to landslides and/or flash flooding. The TgP natural gas pipeline has suffered
no leaks or failures. TgP has adopted a geotechnical risk assessment methodology and has classified the risks
identified along the NGL pipeline according to a categorization system. Subsequently implementation of mitigation
activities, based on the risk assessment, has substantially eliminated most of the sites currently considered to be high
risk. Mitigation programs for TgPs NGL pipeline are being implemented for the natural gas pipeline as well, and this will
contribute to further reduce the probability of failures. Geotechnical stabilization measures constructed during 2006 are
considered reliable and robust by technical consultants to the operators and lenders.
Client's community engagement

As detailed under Performance Standard 1, the PERU LNG project has taken cognizance of the significant level of
interest in the project and conducted an early and comprehensive consultation process designed in accordance with
Peruvian regulations and international best practice (including IFC s Performance Standards). A Stakeholder
Engagement Plan (SEP) was developed describing the consultations that were conducted for each one of the ESIAs
(Plant, Plant Amendment, Quarry, and Pipeline); the consultations that have occurred since each of the ESIAs was
disclosed, and consultations that have been planned for the future.
In total, the consultation process for the four ESIAs included 171 workshops, conducted from June 2002 to March 2006,
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involving over 15,000 people from communities located in the projects area of influence, and representatives from
local and national authorities, NGOs, and other institutions. Twenty-one out of these 171 workshops were with various
NGOs, authorities, and government institutions. In the coastal area a total of 11 districts within the Provinces of Pisco,
C hincha, and C aete took part in consultation meetings and workshops. This consultation process also included specific
meetings with local fishermen. In the Andean segment, 34 directly affected Rural Andean C ommunities (RAC ),
subdivided into 36 annexes, distributed in 16 districts, took part in the consultation process. In addition to the
workshops, informal consultations were conducted during the pipeline route selection process and archaeological
evaluations. Workshops were announced in advance through coordination meetings and invitation letters to local
authorities and land owners, posters in community areas, leaflets, radio, and newspaper advertisements. C ommunity
members located far from the workshop sites were offered transportation, lodging, and subsistence to facilitate their
participation.
For each ESIA, the consultation process included different rounds of meetings to discuss scoping of the ESIAs,
description of findings, development of mitigation measures, and discussion of the final ESIAs. The concerns,
comments, and on-going feedback from participants were documented and considered by the ESIAs. As an example,
additional studies on potential impacts of the pipeline on spring water sites in the Andean section were commissioned
to address community concerns and the resulting pipeline re-routing recommendations were followed. C onsultations
were undertaken mainly through workshops, but also included focus groups and in-depth interviews with key
stakeholders. Special measures and methodologies were adopted for the RAC s to ensure that all consultations were
conducted in a culturally appropriate manner, and took into consideration the low literacy levels in the area and the
logistical difficulties posed by the mountainous landscape. In this region consultations were conducted at the district
level, qualitative data collection techniques such as Participatory Rural Assessment Workshops (PRAW) were used and
presentations and documentation were provided in Quechua and Spanish.
PERU LNG is also conducting extensive additional on-going consultations for the easement acquisition along the
pipelines RoW in the Andean section (more than 400 workshops and meetings). PERU LNGs Pipeline C ompensation
Management Plan (PC MP) includes an information and consultation component aimed at ensuring that project affected
people (PAP), households, and communities are aware of the process and have opportunities to have their concerns
heard and addressed. This component includes provisions to ensure that consultations are easily accessible; inclusive
of men and women; culturally appropriate; respectful of communities decision-making procedures; free of external
coercion; and that the information is accurate, relevant and understandable (in Spanish and Quechua) and provided in
a timely manner.
PERU LNG has to-date conducted the consultation process for the ESIAs and all land acquisition in a manner consistent
with Free, Prior and Informed C onsultation (FPIC ). In the case of the RAC s, the land easement acquisition process also
included consultation measures consistent with good faith negotiations. The consultation process includes on-going
reiterative contacts with communities and individuals over long periods of time; signing of formal agreements with
communal counsels demonstrating that at least two thirds of community members agreed with commencing
negotiations through community-elected representatives (as is required by Peruvian law for transactions involving
communal lands); provision of timely information and time for decision-making according to local cultural practices;
and registering of signed agreements in public registries, including the outcome of negotiations and clear commitments
for all parties involved. PERU LNG will also implement procedures in line with its SEP to ensure that communities are
informed and consulted on an on-going basis throughout the life of the project.
Local access of project documentation

The environmental documents associated with Peru LNGs operations have been disclosed at the following location:
Peru LNG
Av. Victor Andres Belaunde 147,
Va Real 185 - Torre Real 12 Piso 1.
San Isidro, Lima, Per
Client's Documentation
Appendix A.pdf (1007Kb)
Appendix B.pdf (34Kb)
Appendix C Rev.pdf (1941Kb)
ATTGH3ZU (1174Kb)
Biodiversity Action Plan.pdf (17035Kb)
CEA.pdf (14719Kb)
Community Health Guidance D...pdf (112Kb)
Contingency Plan - Plant.pdf (1447Kb)
Contingency Plan Pipeline -...pdf (39140Kb)
Cultural Heritage Managemen...pdf (132Kb)
EFS.pdf (10139Kb)
EIA Marine Terminal ANNEX 6...pdf (466Kb)
Environmental Impact Identi...pdf (55Kb)
Equipo de especialistas.pdf (10Kb)
ES Compliance Assurance Pla...pdf (486Kb)
ESHS-MS Implementation Time...pdf (62Kb)
ESHS MS Manual.pdf (1218Kb)
ESHS Training Plan.pdf (168Kb)
ESIA Pipeline ambito de es...pdf (849Kb)
ESIA Pipeline lista de esp...pdf (107Kb)
ESIA Pipeline Metodolia ge...pdf (13Kb)
ESIA Distribucion Altitudin...pdf (37Kb)
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ESIA Metodologia de evaluac...pdf (76Kb)
ESIA piipeline Metodologica...pdf (13Kb)
ESIA pipeline Especificaci...pdf (23Kb)
ESIA pipeline informe de e...pdf (69Kb)
ESIA pipeline Certificados ...pdf (19Kb)
ESIA pipeline Precipitacion...pdf (645Kb)
ESIA Pipeline Certificados...pdf (77Kb)
ESIA Pipeline Data Meteoro...pdf (94Kb)
ESIA Pipeline equipe de ge...pdf (802Kb)
ESIA Pipeline listas de no...pdf (72Kb)
ESIA Pipeline Lista de Ave...pdf (451Kb)
ESIA Pipeline Analisis Desc...pdf (765Kb)
ESIA Pipeline Anexo 4.6.10 ...pdf (105Kb)
ESIA Pipeline Anexo 4.6.4 L...pdf (123Kb)
ESIA Pipeline Anexo 4.6.7 C...pdf (67Kb)
ESIA Pipeline Anexo de sism...pdf (157Kb)
ESIA Pipeline Anexo de unid...pdf (195Kb)
ESIA Pipeline Anexo Drenaje...pdf (152Kb)
ESIA Pipeline Antecedentes ...pdf (376Kb)
ESIA Pipeline Calculos de c...pdf (23Kb)
ESIA Pipeline Caracteristic...pdf (143Kb)
ESIA Pipeline Composicion f...pdf (557Kb)
ESIA Pipeline Data Meteorol...pdf (1046Kb)
ESIA Pipeline Data Meteorol...pdf (2062Kb)
ESIA Pipeline Datos de Hidr...pdf (166Kb)
ESIA Pipeline Definicion al...pdf (76Kb)
ESIA Pipeline Descripcion d...pdf (709Kb)
ESIA Pipeline Description d...pdf (851Kb)
ESIA Pipeline Estudio cuali...pdf (855Kb)
ESIA Pipeline Hidrogeologia...pdf (103Kb)
ESIA Pipeline Hidrogeologic...pdf (100Kb)
ESIA Pipeline Informe Lagu...pdf (764Kb)
ESIA Pipeline Informe de so...pdf (4454Kb)
ESIA Pipeline Informe de ta...pdf (1009Kb)
ESIA Pipeline lista de espe...pdf (38Kb)
ESIA Pipeline Lista de espe...pdf (223Kb)
ESIA Pipeline Lista de espe...pdf (350Kb)
ESIA Pipeline Mapa Comunal ...pdf (2771Kb)
ESIA Pipeline Mapa Comunale...pdf (3212Kb)
ESIA Pipeline Metodologia d...pdf (112Kb)
ESIA Pipeline Metodologica ...pdf (149Kb)
ESIA Pipeline Perfiles Long...pdf (3Kb)
ESIA Pipeline Ponderacion d...pdf (24Kb)
ESIA Pipeline Principale ca...pdf (105Kb)
ESIA Pipeline Propriedad Ge...pdf (396Kb)
ESIA Pipeline ranking de se...pdf (28Kb)
ESIA Pipeline Ranking total...pdf (70Kb)
ESIA Pipeline Registros Dia...pdf (68Kb)
ESIA Pipeline Sectores Fisi...pdf (136Kb)
ESIA Pipeline Transectos de...pdf (64Kb)
ESIA Pipeline Ubicacion de ...pdf (316Kb)
Fishermen Compensation Mana...pdf (678Kb)
Framework Plan for Investme...pdf (337Kb)
Grievance Procedure.pdf (3722Kb)
Hazard Assessment and Risk ...pdf (318Kb)
Health and Safety Plan.pdf (1070Kb)
Informe de taller de avaluc...pdf (853Kb)
Legal and Other Requirement...pdf (521Kb)
Local Hiring Purchasing Pl...pdf (205Kb)
Marine Monitoring Program.pdf (3091Kb)
MAPA_ALB - 01.pdf (510Kb)
MAPA_ALB - 02.pdf (591Kb)
MoC Procedure.pdf (303Kb)
Non Compliance Corrective A...pdf (142Kb)
plant ESIA Vol II Anexo4.pdf (1069Kb)
PERU LNG Action Plan.pdf (107Kb)
PERU LNG Pipeline Commitmen...pdf (1898Kb)
PERU LNG Plant Commitment R...pdf (212Kb)
Pipeline SLIP.pdf (1502Kb)
Pipeline_Compensat MP.pdf (3539Kb)
Plant Esia Vol I Chap 1 Fin...pdf (221Kb)
Plant ESIA Vol I Chap 7 Fi...pdf (116Kb)
Plant ESIA Vol II Anexo+6.pdf (1224Kb)
Plant ESIA amdt approval.pdf (3899Kb)
Plant ESIA amdt VOl II A ...pdf (12506Kb)
Plant ESIA amnd Vol I Secti...pdf (185Kb)
Plant ESIA AMND Vol I Secti...pdf (391Kb)
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Plant ESIA AMND Vol II B An...pdf (389Kb)
Plant ESIA AMND Vol II B Ap...pdf (308Kb)
Plant ESIA AMND VOL I Execu...pdf (445Kb)
Plant ESIA Vol I- Chap 3 Se...pdf (172Kb)
Plant ESIA Vol I- GENERALCh...pdf (56Kb)
Plant ESIA Vol I - Chap 3 S...pdf (21139Kb)
Plant ESIA Vol I Chap 2 Fin...pdf (7689Kb)
Plant ESIA Vol I Chap 5 Fin...pdf (26283Kb)
Plant ESIA Vol I Cover EX S...pdf (31Kb)
Plant ESIA Vol I EIA_Approv...pdf (6645Kb)
Plant ESIA Vol I Ex Sum.pdf (920Kb)
Plant ESIA Vol II Anexo5.pdf (38560Kb)
Plant ESIA Vol II Appendix1...pdf (721Kb)
Plant ESIA Vol II contingen...pdf (1280Kb)
Plant ESIA Vol II Cover Vol...pdf (31Kb)
Plant ESIA Vol II EIA Dredg...pdf (696Kb)
Plant ESIA Vol II EIA Marin...pdf (466Kb)
Plant Influx Management Sta...pdf (1255Kb)
Plant SLIP.pdf (629Kb)
Project Standards[1].pdf (797Kb)
Quarrry ESIA Vol 2 Apendice...pdf (35Kb)
Quarry ESIA Vol II ANEXO ...pdf (19Kb)
Quarry Esia Vol II Anexo 5....pdf (169Kb)
Quarry ESiA Vol 3 M 5-7a vi...JPG (1184Kb)
Quarry ESIA Vol 3 M 5-2 ge...JPG (10964Kb)
Quarry ESIA Vol II 523LIS~...pdf (1228Kb)
Quarry ESIA Vol II 524PRE~...pdf (4767Kb)
Quarry ESIA Vol II 528INF~...pdf (266Kb)
Quarry ESIA Vol II 545INF~...pdf (970Kb)
Quarry ESIA Vol II Anexo 1...pdf (654Kb)
Quarry ESIA Vol II CARTAS~...pdf (836Kb)
Quarry ESIA Vol II Indice ...pdf (22Kb)
Quarry ESIA Vol III Indice...pdf (19Kb)
Quarry ESIA vol 2 3.1 Metod...pdf (48Kb)
Quarry ESIA Vol 2 2.2.1 An...pdf (124Kb)
Quarry ESIA Vol 2 2.2.4 SE...pdf (2851Kb)
Quarry ESIA Vol 2 .4 Evalu...pdf (140Kb)
Quarry ESIA Vol 2 3.2 Lista...pdf (41Kb)
Quarry ESIA Vol 2 A NEXO2~3...pdf (266Kb)
Quarry ESIA Vol 2 Anexo 2.1...pdf (374Kb)
Quarry ESIA Vol 2 Anexo 2.1...pdf (26Kb)
Quarry ESIA Vol 2 ANE69E~1.pdf (754Kb)
Quarry ESIA Vol 2 ANEXO2~4.pdf (44Kb)
Quarry ESIA Vol 2 Apendice ...pdf (33Kb)
Quarry ESIA Vol 2 Apendice ...pdf (23Kb)
Quarry ESIA Vol 2 Apendice1...pdf (213Kb)
Quarry ESIA Vol 3 M 3-1 alt...JPG (2111Kb)
Quarry ESIA Vol 3 M 4-1 ubi...JPG (1439Kb)
Quarry ESIA Vol 3 M 4-2 Pla...JPG (1432Kb)
Quarry ESIA Vol 3 M 5-1 Met...JPG (666Kb)
Quarry ESIA Vol 3 M 5-10 ar...JPG (9052Kb)
Quarry ESIA Vol 3 M 5-11 So...JPG (1411Kb)
Quarry ESIA Vol 3 M 5-12 ik...JPG (7515Kb)
Quarry ESIA Vol 3 M 5-3 geo...JPG (13316Kb)
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Quarry ESIA Vol 3 M 5-4 est...JPG (8272Kb)
Quarry ESIA Vol 3 M 5-6 cum...JPG (9057Kb)
Quarry ESIA Vol 3 M 5-7b vi...JPG (1796Kb)
Quarry ESIA Vol 3 M 5-7c vi...JPG (2069Kb)
Quarry ESIA Vol 3 M 5-7d vi...JPG (1660Kb)
Quarry ESIA Vol 3 M 5-7e vi...JPG (1718Kb)
Quarry ESIA Vol 3 M 5-8 uso...JPG (10496Kb)
Quarry ESIA Vol 3 M 5-9 Mon...JPG (9857Kb)
Quarry ESIA Vol 3 M A8-1 Mo...JPG (1771Kb)
Quarry ESIA Vol I EIA GNL-...pdf (7221Kb)
Quarry ESIA Vol I Aprobacio...pdf (3429Kb)
Quarry ESIA Vol I Executive...pdf (450Kb)
Quarry ESIA Vol I Index Can...pdf (128Kb)
Quarry ESIA Vol II 1.1 List...pdf (17Kb)
Quarry ESIA Vol II 4.1 PEA ...pdf (162Kb)
Quarry ESIA Vol II Anexo 5....pdf (1852Kb)
Quarry ESIA Vol II Anexo 8 ...pdf (153Kb)
Quarry ESIA Vol II Bibliogr...pdf (49Kb)
Quarry ESIA Vol II Informe ...pdf (213Kb)
Quarry ESIA Vol II Qvol II ...pdf (1079Kb)
Quarry ESIA Vol II QvolI I ...pdf (12283Kb)
Quarry ESIA Vol III Indice ...pdf (19Kb)
Quarry ESIA VOl 3 M 5-5 Sue...JPG (9736Kb)
Quarry SLIP.pdf (365Kb)
Rural Andean Community Mngm...pdf (906Kb)
Security Management Strateg...pdf (88Kb)
Sensitivity_chart.pdf (39Kb)
Stakeholder Engagement Plan...pdf (2338Kb)
Transport Management Plan.pdf (24224Kb)
Upstream Facilities Action ...pdf (105Kb)
33/33

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7/2/2014

Project num ber

Latin America and the Caribbean

Oil and Gas Production (Includes Development)

Reg Ind, Infra & Nat Res, CAF/CLA

Com pany nam e

Environm ental category

Date ESRS disclosed

Last Updated Date

Invested: November 14, 2008

Overview of IFC's scope of review

Identified applicable performance standards

Social and Environmental Assessment and Management Systems

Environmental and social categorization and rationale

Site visits to the proposed project areas;

Key environmental and social issues and mitigation

Minimum of 100 hectares (ha) of land space available;

Environmental and Social C ompliance Assurance Plan;

Pipeline pollution control:

will be reinstated and re-vegetated as appropriate.

Performance Standard 6: Biodiversity C onservation and Sustainable Natural Resources Management:

2. Torobamba River Valley Thorny Scrub.

C ultural Heritage C hance Find Procedure:

Client's community engagement

Local access of project documentation

Appendix B.pdf (34Kb)

Appendix C Rev.pdf (1941Kb)

Biodiversity Action Plan.pdf (17035Kb)

Community Health Guidance D...pdf (112Kb)

Contingency Plan - Plant.pdf (1447Kb)

Contingency Plan Pipeline -...pdf (39140Kb)

Cultural Heritage Managemen...pdf (132Kb)

EIA Marine Terminal ANNEX 6...pdf (466Kb)

Environmental Impact Identi...pdf (55Kb)

Equipo de especialistas.pdf (10Kb)

ES Compliance Assurance Pla...pdf (486Kb)

ESHS-MS Implementation Time...pdf (62Kb)

ESHS MS Manual.pdf (1218Kb)

ESHS Training Plan.pdf (168Kb)

ESIA Pipeline ambito de es...pdf (849Kb)

ESIA Pipeline lista de esp...pdf (107Kb)

ESIA Pipeline Metodolia ge...pdf (13Kb)

ESIA Distribucion Altitudin...pdf (37Kb)

ESIA Metodologia de evaluac...pdf (76Kb)

ESIA piipeline Metodologica...pdf (13Kb)

ESIA pipeline Especificaci...pdf (23Kb)

ESIA pipeline informe de e...pdf (69Kb)

ESIA pipeline Certificados ...pdf (19Kb)

ESIA pipeline Precipitacion...pdf (645Kb)

ESIA Pipeline Certificados...pdf (77Kb)

ESIA Pipeline Data Meteoro...pdf (94Kb)

ESIA Pipeline equipe de ge...pdf (802Kb)

ESIA Pipeline listas de no...pdf (72Kb)

ESIA Pipeline Lista de Ave...pdf (451Kb)

ESIA Pipeline Analisis Desc...pdf (765Kb)

ESIA Pipeline Anexo 4.6.10 ...pdf (105Kb)

ESIA Pipeline Anexo 4.6.10 ...pdf (129Kb)

ESIA Pipeline Anexo 4.6.10 ...pdf (128Kb)

ESIA Pipeline Anexo 4.6.11 ...pdf (106Kb)

ESIA Pipeline Anexo 4.6.11 ...pdf (106Kb)

ESIA Pipeline Anexo 4.6.11 ...pdf (103Kb)

ESIA Pipeline Anexo 4.6.11 ...pdf (86Kb)

ESIA Pipeline Anexo 4.6.12 ...pdf (103Kb)

ESIA Pipeline Anexo 4.6.4 L...pdf (123Kb)