Ministry of Environment, Energy and Telecommunications

Government of Costa Rica

Universal Service Fund for Telecommunications

(FONATEL)

Report

Table of Contents

Acronyms

Excecutive Summary

Introduction

Legislative and Institutional Background

Environmental and Social baseline

Potential impacts of the Project

Reference Framework for the Environmental Management of Telecommunication Projects

Screening, appraisal and implementation process for FONATEL

Action Plan for the Implementation of the Reference Framework

1Introduction

1.1Objective and Scope of the ESMF

1.2Contents of the ESMF

1.3Applicable guidelines

2Project description

2.1Background

2.2Objective

2.3Key Development Issues and Rationale for World Bank Involvement

2.3.1Proposed World Bank Objective(s)

2.3.2Preliminary description of the World Bank Project Components

2.4World Bank Safeguard Policies Triggered

3Legislative, Regulatory and institutional framework

3.1Executive Summary

3.2Institutional Roles and Responsibilities for the Telecommunications and Environmental Sector

3.2.1Ministry of Environment and Energy (MINAE)

3.2.2National Environmental Technical Secretariat (SETENA)

3.2.3The Costa Rican Institute of Electricity (ICE)

Description

3.2.4Radiográfica Costarricense S.A. (RACSA)

3.2.5Radio Control Office

3.2.6Public Services Regulatory Agency (ARESEP)

3.2.7Ministry of Health

3.2.8Ministry of Labor and Social Security

3.2.9Other Entities

3.3Legal Framework Of Costa Rica

Table 3.1Costa Rica’s Legal Framework

3.4Legislative Review of the Telecommunications Sector

3.4.1Relevant Regulations for Managing Environmental Impacts

Telecommunications Infrastructure in Protected Areas

EIA Regulations and Permitting Procedures

3.4.2Laws Regulating the Exploitation of Telecommunications Services

3.4.3Environmental, OHS, and Labor Regulations Applicable to Construction Works

3.5Gap Assessment of the Legislative and Institutional Framework in Costa Rica

3.5.1Analysis of Costa Rica’s Legislative and Institutional Framework

3.5.2Gap Analysis of the World Bank Safeguard Policies

3.6Future Regulatory Overview

3.6.1General Telecommunications Law (File N°16398)

3.6.2Law for the Strengthening and Modernization of Public Entities of the Telecommunications Sector (File N° 16524)

3.7Options for Modernizing the Existing Framework

4General environmental and social baseline

4.1General environmental baseline in Costa Rica

4.1.1Geography and Topography

Figure 4.1. Map of Central America

4.1.2Geology and vulnerability to natural disasters

Figure 4.2Most important earthquakes from 1983 to 2003

Figure 4.3Major Volcanoes of Costa Rica

4.1.3Hydrology

4.1.4Climate

Figure 4.4Precipitations in Costa Rica

4.1.5Ecosystems

4.1.6Vegetation

4.1.7Wetlands and Mangroves

4.1.8Land use

Figure 4.5 Extent of Forest and other wooded land

4.1.9Biodiversity in Costa Rica and Protected Areas

Figure 4.6 Conservation Areas as defined by SINAC

4.1.10Migratory Birds Corridors

Figure 4.7 Bird migration routes to the South (winter migration)

Figure 4.8 Bird migration routes to the North (spring migration)

4.2General socioeconomic baseline in Costa Rica

4.2.1Political Divisions

Figure 4.9 Political Map of Costa

4.2.2Population

Figure 4.10Distribution of Population in Urban and Rural Areas

Figure 4.11Distribution of Population per region

4.2.3Indigenous Communities

Figure 4.12Indigenous Reserves in Costa Rica

4.2.4Economy in Costa Rica

4.2.5Telecommunication infrastructure

4.2.6Other infrastructure

4.3Rapid risk assessment baseline

4.3.1Technical Risk Assessment

Figure 4.13Environmental Constraints

4.3.2Environmental Risk Assessment

4.3.3Socioeconomic Risk Assessment

5potential l impacts of the project

5.1Introduction

5.2Potential Environmental Impacts

5.2.1Terrestrial Habitat Alteration

5.2.2Migratory Birds

5.2.3Aquatic Habitat Alteration

5.2.4Visual Impacts

5.2.5Hazardous and Non-Hazardous Materials and Waste

5.2.6Emissions to Air

5.2.7Noise

Table 5.1 Potential Environmental Impacts

5.3Potential socio-economic, community health and safety impacts

5.3.1Investments in the telecommunications sector

5.3.2Economic conditions

5.3.3Indigenous Communities

5.3.4Land acquisition and modification of land use

5.3.5Cultural and archaeological findings

5.3.6Public health and EMF

5.3.7Public Safety

5.3.8Physical and aircraft security

Table 5.2 Potential Socio-economic Impacts

5.4Potential Occupational Health And Safety Risks

5.4.1Contingencies

5.4.2Electrical safety

5.4.3Electromagnetic fields (occupational)

5.4.4Optical fiber safety

5.4.5Elevated and overhead work

5.4.6Fall protection

5.4.7Confined space entry

5.4.8Motor vehicle safety

Table 5.3 Potential Occupational Health and Safety Hazards

6Reference framework for the environmental management of telecommunications projects

6.1Project Implementing Agency

Figure 6.1. Screening, appraisal and implementation process for FONATEL

6.2Project screening, review and implementation Process

6.3Step 1: Site Selection and Screening

Table 6-2Risk assessment for subproject categories

6.3.1Evaluation Criteria

Table 6.3Pass-fail criteria

6.3.2Evaluation of Site Criteria

6.4Step 2: Categorization and Appraisal process

6.4.1Categorization

Table 6.4. Category scoring in appraisal procedure following Form D1

Figure 6.5. Decision paths in the project categorization and appraisal process by SETENA

6.4.2Appraisal

6.5Step 3: Approval, Disclosure and Public Consultation

6.5.1Approval

6.5.2Disclosure and Public Consultation

6.6Step 4: Implementation

Figure 6.6. Subproject implementation supervision

6.7Step 5: Monitoring and evaluation

7Action plan for implementation of the reference Framework and urgent regulatory measures

7.1Contents

7.2Action Plan for the Implementation of the Reference Framework

7.2.1Capacity building and technical assistance requirements

Table 6.2Action Plan for implementation of the framework

7.3Guidelines for the development of regulations for environmental protection

7.4Guidelines for the development of regulations for sharing of telecommunication infrastructure

7.5Environmental and Social Assessment Manual for FONATEL Projects

8Public consultation and disclosure process

8.1Process for Public Consultation

Table 8.1Key stakeholder groups identified

8.2Proposed Disclosure Plan

LIST OF ANNEXES

Annex 1World Bank Group, Environmental, Health, and Safety Guidelines: Telecommunications, Environmental, Occupational Health and Safety, Community Health and Safety (April 30, 2007)

Annex 2EBRD Sub-Sectoral Environmental Guidelines for Telecommunications

Annex 3World Bank Safeguard Polices

Annex 4GIS Maps

Annex 5Inventory of International Best Practice for Managing Environmental Impacts in the Telecommunications Sector

Annex 6Rapid Environmental Valorization (Valoración Ambiental Rápida or VAR)

Annex 7Protocol for Establishing Telecommunications Facilities in Costa Rica

Annex 8Measures for Mitigating Environmental and Social Impacts

Annex 9Environmental and Social Assessment Manual for Subprojects Funded by FONATEL

Annex 10Sample Language of Environmental Contract Clauses

Annex 11World Bank Environmental Site Sensitivity Compliance Criteria

Annex 12Content of an Environmental Monitoring Report

Annex 13Guidelines for Regulations for Environmental Protection in the Telecommunications Sector

Annex 14Photo Log of the Environmental Assessment during ERM site visit (June 2007)

Annex 15Data Sources

Anexo 16Marco de Planificación para Poblaciones Indígenas (IPPF)

Acronyms

AFOM / French Association of Mobile Phone Operators
AGL / Above ground level
ARESEP / Regulatory Authority for Public Services
CAS / Country Assistance Strategy
CFC / Chlorofluorocarbons
COMEX / Ministry of Foreign Trade
DGAC / General Office of Civil Aviation
DJCA / Sworn Statement on Environmental Commitments
DNCR / Dirección Nacional de Control de Radio
EA / Environmental Assessment
EBRD / European Bank for Reconstruction and Development
ED / Executive Director
EHS / Environment, Health and Safety
EHS / Electromagnetic Hypersensitivity
ESHS / Environment, Social, Health and Safety
EIA / Environment Impact Assessment
EMF / Electromagnetic Fields
EMP / Environmental Management Plan
EsIA / Environmental Impact Study
ESMF / Environmental and Social Management Framework
FAA / Federal Aviation Administration
FCC / US Federal Communication Commission
FIAS / Foreign Investment Advisory Service
FONATEL / Universal Service Fund for Telecommunications
FWS / Fish and Wildlife Service
GIS / Geographic Information System
GoCR / Government of Costa Rica
GPS / Global Positioning System
IBRD / International Bank for Development and Reconstruction
ICE / Costa Rican Institute of Electricity and Telecommunications
ICT / Information and Communication Technology
ICNIRP / International Commission on Non-Ionizing Radiation Protection
IFC / International Finance Corporation
IPPF / Indigenous Peoples Planning Framework
ITC / International Telecommunication Convention
LNG / Federal Aviation Administration
MINAE / Ministry for Environment and Energy
MINAET / Ministry of Environment, Energy, and Telecommunications
NEXRAD / Next Generation Radar
NGO / Non-governmental Organization
ODS / Ozone depleting substances
OHS / Occupational, health and safety
OP / Operational Policy
OVSICORI-UNA / Volcanological and Seismological Observatory of the NationalUniversity of Costa Rica
PIA / Project Implementation Agency
PPE / Personal Protective Equipment
PPIAF / Public-Private Infrastructure Advisory Facility
POTS / Basic telephone services
P-PGA / Forecast - Environmental Management Plan
PR / Land use plan approved by SETENA
RACSA / Radiográfica Costarricense S.A.
RF / Radio Frequency
ROW / Right of Way
SENARA / Servicio Nacional de Aguas Subterraneas, Riego y Avenamiento
SETENA / Technical Environmental Office
SIL / sector investment loans
SINAC / National System for Conservation Areas
SNE / Servicio Nacional de Electricidad
SUTEL / The Telecommunication Regulatory Entity to be created under the General Telecommunications Law
ToR / terms of reference
USFWS / United States Fish and Wildlife Service
VAR / Rapid Environmental Valorisation
WB / World Bank
WHO / World Health Organization

Excecutive Summary

Introduction

The telecommunications sector in Costa Rica is currently at a turning point. The GoCR has developed an explicit national telecommunications sector modernization policy, as one of the pillars in its effort to increase the global competitiveness of the country.

The GoCR’s telecommunications sector modernization policy is based on principles that are deeply rooted in the national tradition, in particular: (i) gradual, selective and regulated liberalization without privatization; and (ii) benefit to the user in compliance with the social objectives of universality and solidarity.

Against this background, and under the heading of the social objective of universality and solidarity, the general telecommunications law envisages the creation of a Universal Service Fund for Telecommunications, FONATEL, one of whose objectives will be to promote investments in the deployment of telecommunications networks and provision of services to rural areas. The initial round of FONATEL projects will be financed with the support of a World Bank project.

This report, commissioned by the government of Costa Rica (GoCR) presents a sectoral environmental assessment of the Costa Rican telecommunications sector, as well as options for an environmental management plan, which will strengthen the environmental management of the telecommunications sector in Costa Rica. It also provides guidelines for (1) the selection of sites for the construction activities related to the implementation of the proposed World Bank Telecommunications Sector Modernization Project, particularly with regards to the rural telecommunications component, and (2) the design of mitigation measures of environmental impacts.

This report, commissioned by the government of Costa Rica (GoCR) provides an Environmental and Social Management Framework (ESMF) for the proposed Telecommunications Sector Modernization Project in Costa Rica. It includes:

A project description, its components and implementation arrangements;
An understanding of the legislative, regulatory and institutional framework that the Project will operate within, including an analysis of new laws, regulations and agencies, with a focus on requirements that will apply to the planning, approval and implementation of the ESMF for the telecommunication sector;
A general environmental and social baseline of Costa Rica, in order to identify and evaluate potential impact that may arise from the project;
Identification of potential environmental, socioeconomic and health and safety impacts derived from the subprojects to be financed under the Telecommunications Sector Modernization project; including measures to mitigate and manage said impacts;
A management system (called ‘reference framework’) designed to identify and effectively mitigate potential future impacts of telecommunication subprojects which the project is likely to finance;
An action plan for the implementation of the reference framework including: training and capacity building program for the institutions responsible for implementing the ESMF; budget for implementing the ESMF; guidelines for enhancing regulations applicable to the project; and a Manual to assist project proponents in screening proposed subproject sites for potential environmental and social impacts in accordance with criteria defined in the ESMF prior to submitting proposals to the PIA for funding.

Legislative and Institutional Background

The Ministry of Environment and Energy (MINAE) is the main institution responsible for environmental matters in Costa Rica. The National Environmental Technical Secretariat (SETENA) is a technically independent agency from MINAE. Its main purpose is to achieve harmony between the productive industrial processes and their environmental impacts by reviewing and approving environmental impact assessments for activities that alter or affect environmental elements or generate toxic or dangerous materials.

The Costa Rican Institute of Electricity (ICE) administers the electricity and telecommunications sectors. To date, ICE is the sole concessionaire for the exploitation of the electricity and telecommunications services, making ICE a de facto monopoly. ICE currently provides all telephone services in the country, including basic telephone services (POTS), public pay phones, automatic telephones, cellular, commercial communication, international services, and internet access.

In addition, there are a number of institutions that have partial responsibility over telecommunications and environmental matters (such as The Public Services Regulatory Agency, ARESEP, the Radio Control Office, RACSA, and the Ministries of Health and Labor). To date, Costa Rica does not have an integrated legal framework to regulate the telecommunications sector or an integrated set of environmental provisions specifically applicable to the telecommunications sector. Most of the current environmental provisions in Costa Rica are applicable to all types of projects and do not consider telecommunications as an independent category.

The applicable legislation in Costa Ricais consistent with most of the requirements established by the World Bank; however, some of the World Bank’s requirements are not or are only partially met by national legislation. Adjustment measures should be taken to upgrade some of these procedures to ensure full compliance. Such measures should include:

Upgrading the screening and scoping processes;
Developing requirements to consider alternative sites during the site selection process;
Implementing mitigation measures such as tower sharing;
Applying more stringent requirements for EMPs, Sworn Statements, or other instruments for environmental management;
Requiring environmental monitoring of projects, where appropriate; and
Improving public consultation and communication about projects by involving stakeholders in management of natural habitats at project locations.

At the time of this report, two telecommunications bills were under discussion in Congress: the General Telecommunications Law, recently approved, designed to create the legal framework for an open market; and the Law for the strengthening and modernization of public entities of the telecommunications sector, designed to prepare ICE for future competition. Under the current provisions of these laws, MINAE will oversee the telecommunications sector under the new name of Ministry of Environment, Energy, and Telecommunications (MINAET).

Based on the review of the existing legal framework, the opening of the market perspective and the future investments to be made by the project, it is advisable that the government of Costa Rica issue regulations with the objective of creating a clear legal framework for managing environmental issues in the telecommunications sector.

Provisions for strengthening environmental management of telecommunications sector in Costa Rica should address the following:

Specific environmental impact requirements for the construction and installation of infrastructure, including a clear definition of the requirements associated with each phase of the project;
Adequate planning for the location of the infrastructure, including a site selection process with a “no go” option;
Provisions to manage telecommunications facilities’ visual impacts, including considering access for maintenance, appointing maintenance staff, provisions to camouflage the radio bases, especially in the most vulnerable environmental areas;
Regular environmental monitoring, including monitoring of electromagnetic fields emissions;
Disposal and recycle of telecommunications related wastes; and
Public participation.

Environmental and Social baseline

A high level desktop review of the environmental and social characteristics of Costa Rica, relevant to the project,was performed. Geographical Information System (GIS) based maps were developed to support the baseline.

The environmental baseline addresses issues such as: geography and topography; geology and vulnerability to natural disasters; hydrology; climate; ecosystems; vegetation; wetlands and mangroves; land use; biodiversity; and migratory birds.

Issues discussed under the socioeconomic baseline include: political divisions; population; indigenous communities; economy; telecommunication infrastructure; and other infrastructure.

In addition, a rapid risk assessment was performed to evaluate the technical, environmental and socioeconomic risks. Based on a technical standpoint, the most vulnerable areas for construction of cell towers are those with major risks of natural disasters and erosion, i.e. areas with steep slopes, frequent flooding, risk of volcano activity and areas that are prone to hurricanes and earthquakes. The most vulnerable areas from an environmental point of view are areas formed by wetlands, mangroves and protected areas. The most vulnerable areas from a social standpoint are the indigenous communities.

Potential impacts of the Project

The potential positive and negative environmental, socio-economic and health and safety related impacts foreseen as part of the project are based on:

ERM’s firm experience and understanding of the potential environmental, socio-economic and health and safety related impacts in the telecommunications sector;
A review of IFC’s EHS Guidelines for Telecommunications, dated April 30 2007; IFC’s General Environmental, Occupational, Health and Safety Guidelines and EBRD’s Sub-sectoral Environmental Guidelines for Telecommunications;
A constraints analysis for the project based on a general geographical and economic baseline of Costa Rica, supported by a Geographic Information System (GIS);
A rapid assessment of existing facility impacts performed during ERM’s field visit in June 2007; and
A preliminary analysis of possible impacts likely to arise from the planned investments to be financed by the World Bank under the FONATEL project.

The potential environmental impacts associated with this project are minimal to minor. They are notably associated with the construction of access roads for installation of cell towers and masts, primarily in rural areas (including protected areas), which require cutting of vegetation.

The environmental impacts that have been identified fall under the following main issues:

Terrestrial habitat
Migratory birds
Aquatic habitat
Noise pollution
Hazardous materials and toxic waste
Air emissions

Potentially considerable impacts are on migratory birds due to collisions with towers and masts.The impacts of telecommunications towers on birds is not well known in Costa Rica but is well documented in the United States where migrating bird mortality under certain conditions can be extreme, suggesting a precautionary approach in Costa Rica.

Socioeconomic impacts are usually not significant in the telecommunication sector. The major socio-economic impacts related to this project are linked to the following issues:

Land acquisition and land use
Indigenous Peoples
Physical cultural resources
Public health and EMF
Public safety
Physical and aircraft security
Visual Impacts

Impacts on community health and safety are generally minimal for the telecommunication sector. However, there is public concern regarding potential impacts of electromagnetic fields (EMFs). Other concerns include security of the radio bases and their surroundings because of theft incidences that occur on a regular basis.