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ÁGUA VIVA PROJECT OF UBERABA

Environmental Assessment

Executive Summary

1 - INTRODUCTION

The main objective of ÁGUA VIVA PROJECT is to improve the health quality of Uberaba’s population through an environmental sanitation and cultural and environmental preservation. The project comprises three main actions under discussion: (i) Environmental Integrated Sanitation, which foresees interventions in the sanitary sewer, water supply and urban drainage system; (ii) Uberaba’s Environmental and Cultural Preservation and Recovery, that foresees the environmental recovery of APA – Environmental Protection Area of Uberaba River, the implantation of a 25 ha urban Park and of the Fóssil Vivo Project; (iii) Management and Planning which foresees measures for improving the sanitation services, the environmental preservation and recovery, environmental education, social communication and institutional strengthening.

The Project has been rated “A” by the World Bank in compliance with its safeguard policies (OP 4.01). So, during the Project’s preparatory phase, there has been developed an Environmental Assessment Report for the Project in order to identify its potential environmental impacts, recommend mitigative and compensatory measures of the negative impacts and maximize the positive ones. There has been also proposed an Environmental Management Plan in which all these measures were foreseen as part of the Project. The following document summarizes the results of the Environmental Assessment Study.

2 – BACKGROUNDS

The Municipal District of Uberaba is located in the Triângulo Mineiro region in the State of Minas Gerais, about 494 Km away from the capital – Belo Horizonte. It has 251,159 inhabitants (IBGE – census 2000), and from this figure 243,406 are in the urban zone. All municipal territory is within the hydrographic basin of the Grande river. The Municipal District of Uberaba has one of the biggest and most important paleontologic sites of Brazil with 80-65 millions-year-old fossil registers.

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Uberaba’s main hydric body is the Uberaba river which crosses the Municipal District in the east/west direction. This river is the main water supply source of the city, however there is a serious aggravating problem that it does not supply the required supply quota during the dryness period. Besides, it is the receiver body of most part of the urban non-treated discharges of the Municipal District.

The main urban problems of Uberaba refer to: (i) pollution of watercourses arising from the discharge of non-treated sanitary sewer; (ii) water supply rationing during severe dry season due to the insufficient capacity of the current generator system; (iii) floods in downtown arising from the incapacity of the macro drainage system; and (iv) lack of public leisure areas.

Uberaba’s current sanitary sewage system already has a wide coverage concerning attendance of sewage collection (98% of the urban population). The discharge of non-treated sewage is performed in the several channels and streamlets that cross the city, what makes it the most responsible for the pollution of the streamlets of Lajes, Uberaba and Conquistinha rivers, determining a strong degradation of its waters quality, affecting, thus, the environmental quality of the region.

Despite the high attendance rate (98.1%), Uberaba’s water supply system has several problems, especially in relation to its productive capacity which is not sufficient during the dry season, when rationing measures are required. This scenery is worsened even more due to the high rate of losses which is about 37%.

Almost all Uberaba’s city is within the hydrographic basin of Lajes streamlet and its affluents have been channeled in concrete aisles. These aisles compound the macro drainage system of the Municipal District and Uberaba’s viary system has been built over them. With the increase of the areas which were rendered impermeable due to the progressive urbanization process, the flood in the main avenues and, this, in the central region of thebecame more frequent.

Measures developed by the Local Government (Local Government Authority and CODAU) led to the proposition of a plan of investment in sanitation, drainage and environmental management. The Project was then structured from this plan and its main objectives are the following ones:

(i) Institutional strengthening of the Local Government, including the CODAU, in order to guarantee the execution of the Project and its sustainability;

(ii) Recovery of the water quality and reduction of the environmental degradation of the basins of Uberaba and Conquistinha rivers caused mainly by the discharge of urban non-treated sewage;

(iii) Flood control in the central area of the city (basin of Lages streamlet); (iv) Development of a Public Urban Park and leisure equipment, providing population with

leisure opportunities and green areas near the urban area; (v) Environmental recovery of the Environmental Protection Area–APA of the Uberaba river,

including solutions for the preservation of the existent ecosystem and for a sustainable environmental zoning;

(vi) Investments for improving the facilities and construction of support areas to the Centro de Pesquisas Paleontológicas Llewellyn Ivor Price, that is liable for the researches and maintenance of the City District’s paleontological material.

During the Project’s preparatory phase there has been developed a series of studies by the Local Authority Government, with the support of the Japanese Government, under the management of the World Bank, among which, we can mention the following ones:

Conceptual study for central interceptors Standardization of water quality - QUAL2E and CEPIS for dam Study of the demands of the water supply system Dams’ security panel Conceptual study for ETA’S improvement Study of source alternatives for the water supply Conceptual study of macro drainage alternatives

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Institutional analysis of the executing and co-executing bodies of the program and development of the Institutional Strengthening Plan

Consolidation of the paleontologic property management – Fóssil Vivo Project

These studies have provided relevant technical, economical and environmental advantages to the Project, which were resultant from: (i) the introduction of the sewage interceptor system of the central area of the city in the sanitary sewage system; (ii) a change of the additional water supply source, extinguishing the requirement for the implementation of the regulatory dam which has been previously foreseen in Uberaba river; (iii) conceptual alteration of the flood control system proposed for the central area of the city.

The environmental licensing of the interventions are in the following phases: (i) Preparatory studies to request the Previous License (LP): Sewage Treatment Plants, emissaries of the Conquistinha system; (ii) installation license phase (LI): Interceptor of Uberaba river’s left margin, Leopoldino de Oliveira detaining basin. In relation to Leopoldino de Oliveira basin’s LI, which has been licensed by the municipal CODEMA, there is a dispute with the State licensing body (FEAM) that has not been solved. There are some temporary grants for the use of the waters of Uberaba river and for the transposition from Claro river, in which there has been provided a term so that the Municipal District can solve its problem of additional supply of water. There are some deforestation permits in the APPs areas with the respective mitigating and compensatory measures for the construction of the interceptors of Uberaba system and for the transposition works of Claro river.

3-MAIN ACTIVITIES OF THE PROJECT

Next, there shall be described the main activities of the Project with the potential environmental and social impacts.

3.1-ENVIRONMENTAL SANITATION

3.1.1 – Sewage Collection, Transportation and Treatment: Uberaba’s current sanitary sewage system has a wide coverage in relation to the sewage collection (98% of the urban population). However, the sewage is not treated and it is discharged in natura into the several channels and streamlets that cross the city. The Água Viva Project foresees the complementation of the existent system through the implementation of two independent sewage systems (Uberaba System and Conquistinha System), whose main characteristics are presented in Figure 1 and in Tables 1 and 2. Uberaba System shall be liable for attending about 75% of Uberaba’s urban population and Conquistinha System shall attend the rest of the population. There shall be built two sewage treatment plants [ETE]. Uberaba’s ETE shall be built 10 Km away from downtown, in the northwest direction, in an area of 5 ha. Conquistinha’s ETE shall be built in a 2,2 ha area in the southeast of the city. Uberaba System, in its original conception, did not foresee the implementation, in this phase, of the marginal interceptors of the Lajes streamlet and its affluents in the central area of the city. The system would operate from this point as “unitary”, i.e., the sewage would be discharged in the existent rain water aisles and then, they would be jointly directed with the drainage waters to Uberaba UTE. There would be built a diversor system which would discharge in Lajes streamlet flows which exceeded ETE’S capacity during the floods. Studies developed during the Project’s preparatory phase led to the proposal of implementation since now the sewage interceptors, forming, thus, an “absolute separator” system.

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Figure 1: Sanitary Sewage System proposed to Uberaba

Table 1: Proposed interventions for the Sanitary Sewage System of Uberaba River’s Basin.

Unit Characteristics

Central Interceptors

Lajes streamlet

Length: 21,048 m

Diameters varying according to Table 3.2

Uberaba river’s left margin interceptor

Length: 10,223 m (8.2 km are already completed downstream the Lajes streamlet)

Diameter: 500mm (3,843m), 800mm (2,908m) and 900mm (3,472m)

Elevatory Station of Raw Sewage

Power: 400cv

Maximum Flow: 745 L/s

Number of Pumps: 3 + 1

Pumping height: 20 m

Sewage Treatment Plant – Uberaba ETE

Attended population (end of the plan): 254,665 inhabitants

End of the Plan: 2027

AverageQ: 465 l/s – 40,155 m3/day

Load of BOD5: 12,224 kg/day

Load of Suspended Solids: 8,913 kg/day

Removal Efficiency: BOD (90%) – SS (90%)

Treatment process: UASB Reactors Aerated Lagoons complete mixture

Optional aerated lagoons Sludge Lagoon Mechanical dehidratation of the sludge

SISTEMA UBERABA

SISTEMA CONQUISTINHA

ETE UBERABA

ETE CONQUISTINHA

rio Uberaba

Ribeirão Conquistinha Emissário Proposto

Emissário Concluído

Interceptor Proposto

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Table 2: Proposed interventions for the Sanitary Sewage System of Conquistinha River’s Basin.

Unit Characteristics

Emissário Desbarrancado (Desbarrancado Emissary)

Extension: 9.000 m

Diameter: 700mm

Emissário Sucurí (Sucurí Emissary)

Extension: 7,259 m

Diameter: 400mm

Sewage Treatment Plant – Uberaba ETE

Attended Population (end of the plan): 80,421 inhabitants

End of the plan: 2027

AverageQ: 147 l/s – 12,680 m3/day

Load of BOD5: 3,860 kg/day

Load of Suspended Solids: 2,815 kg/day

Removal Efficiency: BOD (95%) – SS (90%)

Treatment Process: UASB Reactors Aerated lagoons complete mixture

Optional aerated lagoons Sludge drying beds

The material taken during the preliminary treatment as well as the mud produced in the treatment process after being properly dehydrated shall be disposed in the municipal sanitary landfill which has been recently built. Studies to be developed later shall evaluate the possibility of using the mud to manure agricultural lands. The receiver body elected to receive the treated influents of Uberaba river ETE is Uberaba river itself, about 10 Km downstream the city’s water capture, while the treated effluent of Conquistinha ETE shall be discharged in Conquistinha stream. Both receiving bodies are Grande river’s affluents.

The implementation of the sanitary sewage system may just require dispossessions of lands which are within the area of direct performance of the measures of the proposed enterprise, totalizing approximately 49 ha. The ETE’S are located in a rural area about 800 meters away from urban settlements and there shall not be required families’ relocation. 3.1.2 – Urban Drainage and Flood Control: The main problem of the urban drainage of the city of Uberaba results from the frequent floods of its central area arising from the insufficiency of the main existent channels and aisles. Previously, the Municipal District had already hired a Plan for the Control of urban Floods whose hydrological and hydraulic studies recommended the implantation of 4 detaining basins to dampen the flow peaks so as to reduce them to the discharge capacity of the existent aisles. One of these basins, the biggest one, has been implemented. Recently, during the Project’s preparatory phase there were developed new hydrological and hydraulic studies by Fundação Cristiano Ottoni [Christiano Ottoni Foundation] of Universidade Federal de Minas Gerais – UFMG [Federal University of Minas Gerais], in order to: (i) assess the rain water discharge conditions in the main channels and aisles in a variety or urban development sceneries; (ii) asses the current and future risks and their consequences; (iii) identify flood control and risk’s reduction alternatives; (iv) propose a more advantageous solution under the environmental and economical point of view. In the said study, several alternatives had been proposed and studied, including the construction of detaining basins, implementation of additional aisles or tunnels in order to increase de discharge capacity of the flood flows. These alternatives were assessed individually or jointly in order to get the most proper solution under the technical, economical and environmental points of view.

The results of the hydrological and hydraulic studies developed shows that keeping the system with the current configuration would mean the submission of the population to losses and damages with a non-acceptable recurrence (2 years), also involving the risk of loosing human lives. The initial proposal of complementing the existent system with detaining basins in the drainage sub-basins of the Lages streamlet also showed itself insufficient to guarantee the flood control with a recurrence period superior to 5 years.

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Frequent floods - central área of Uberaba

The other alternatives were proposed and analyzed in order to guarantee the flood control with a 25-year-recurrence. Among them, the one which has been distinguished as the most technically, economically and environmentally feasible is the alternative which considers the complementation of the capacity of the current system, including the detaining basin which has been constructed recently and the implementation of additional aisles in the drainage system. This proposed alternative is summarized in Figure 2 and Table 3, below:

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Figure 2. Hydrographic Basin of Lajes Streamlet – Unifilar Chart considering the use of reinforcement channels as conventional aisles.

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Table 3: Reinforcement of the Current System with Aisles

3.1.3 – Improvement of the Water Supply System: Comprises a series of interventions in the water production and distribution systems in order to regularize the water supply and attend a future demand. The improvement of the water supply system shall be accomplished through three main actions: (i) Reinforcement of the water supply, considering that the captured source does not have water availability during the dry season to attend the city’s demand; (ii) implementation of the loss control system in order to reduce the current loss rate which, nowadays, is 37% of the dammed up water; (iii) automatization of the water damming up and treatment systems.

The current sources availability is just 380 l/s, for supplying a demand of 1.100 l/s. Uberaba river, the main supplying source of the city considering the grant limits of water usage, may supply only 230 l/s and the artesian wells complete the offer with more150 l/s. The difference between the demand and the availability has been obtained through a temporary grant for taking additional flow from Uberaba river, what does not solve the problem during the most severe dry seasons due to the absolute non-availability of water during these periods. This situation is currently solved by the transposition of Claro river’s waters to the Uberaba river’s basin, which is also performed with a temporary license issued by state body that manages the hydric resources (Instituto Mineiro de Gestão das Águas- IGAM). It is clear that the current water supply system presents a high unsafeness level. Uberaba’s local management has already developed studies which led to the proposal of obtaining the required additional supply through the regularization of Uberaba’s river flow and, for this purpose, it proposed the construction of a regularization dam in a place called Prainha. The Basic Project defined a 16-meter high dam with a flood area of 43.4 hectares.

During the preparatory phase, the Security Panel was put into action, which concluded that the dam had geotechnical conception problems and did not have the required regularization capacity. Studies of the water quality additionally showed a strong hypereutrophication of the reservoir. The studies which have been performed showed that the proposed solution of the dam was not proper under the technical and environmental aspects.

New studies were developed during the Project’s preparatory phase and several additional or substitutive supply sources were analyzed, namely: (i) regularization of the Uberaba river’s flow with other dams’ analysis; (ii) Use of Claro river, either through the current reversion implemented definitively or through a direct aduction up to the city; (iii) capture in Grande river; (iv) capture in Araguari river, and (v) Increase of the number of artesian wells.

Streamlet Local Flow Length Transverse section

Q [m3/s] L [m] Length [m] Height [m]

Igreja G. Ferreira 32 670 3.5 2.0

G. Ferreira 37 670 3.5 2.3

Comercio Fidelis Reis 6 320 2.0 1.2

Manteiga P. Salomão 17 434 2.5 1.8

Bicas St. Beatriz 14 306 2.5 1.5

18 340 2.5 1.5

22 417 3.0 2.0

Bicas Sts. Dumont 50 548 4.0 2.5

55 709 4.5 3.0

Lajes L. Oliveira 35 360 4.0 2.0

73 1,071 5.0 3.0

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The studies concluded that the best solution, under the technical, economical and environmental aspects, is the definitive implementation of the current temporary solution of reversion of the Claro river waters to the Uberaba river basin. This alternative, which shall be detailed in a subsequent stage, shall be submitted to IGAM in order to get the definitive grant of the right of use.

The system improvement also foresees a loss reduction program whose importance can be measured by the fact that its success shall release the Municipal District from the burden of increasing the system capacity within Project’s validity, as evidenced by the study of demand which was developed. In other words, the loss reduction from about 37% to 15% assures that the generator system which shall be implemented shall attend the period of 25 years.

In relation to the water treatment plant, the proposed improvements aim at assuring the quality of the treated water, operational costs reduction and implantation of a residues treatment unit, that, currently, are discharged in city’s rainwater net without any control. This unit, besides the resulting environmental benefit, shall also allow the recovery of the waters used to wash filters and decanters, contributing, thus, for the loss reduction.

3.2-UBERABA’S ENVIRONMENTAL AND CULTURAL PRESERVATION AND RECOVERY

Despite it is the main public supply source of the Municipal District, the Uberaba river Basin faces a relevant environmental problem: the water quality of Uberaba river and its main affluents. Among the main reasons of Uberaba river and its affluents’ environmental degradation, there must be pointed out the following ones: (i) discharge of non-treated sanitary sewage; (ii) excessive removal of water for several uses; (iii) non-existence of a proper treatment of valley’s bottom; (iv) non-controlled discharge of residues and waste material; (v) poor environmental education.

The Água Viva Project proposes measures to reduce the environmental degradation of Uberaba river and its affluents within the area that crosses Uberaba’s Municipal District and prevent the recurrence of the environmental problems presently identified in this area. Besides the expected interventions in the urban sanitary sewage collection and treatment system, which has already been described herein, the Project also proposes a set of interventions in order to improve the water quality of Uberaba’s river and its affluents.

On the other hand, the Project also proposes the paisagistic recovery of Lajes streamlet’s margins, through the construction of a linear park, including the construction of bicycle paths, activities of re-planting and gardening and construction of urban facilities (kiosks, convenience centers, stagnant waters, etc).

3.2.1 – Environmental Recovery of Uberaba river’s APA: It refers to the hydrographic basin area of Uberaba river upstream from the present dam, with an area of 463km2, which has already been defined by State Law No. 13,183 of January 21st, 1999 as an “Environmental Protection Area – APA”. The environmental recovery of Uberaba river’s APA shall occur as from the following activities: (i) development and implantation of a handling plan; (ii) recovery of ciliary, top and hillside forests; (iii) development of a plan in order to prevent risk of accidents with dangerous loads (iv) Hydric management system; (v) geoprocessing service.

3.2.2- Córrego das Lajes Park: By means of an urbanistic and paisagistic treatment, there is the intention to implement a Linear Park of approximately 25 hectares along the Lages river, downstream the city until the confluence with Uberaba river, that shall provide a leisure area of metropolitan importance to the population of the city and surroundings. The project comprises the construction of leisure, sport, culture and meditation complexes, for any age, social and race ranges, democratizing the public area and allowing a better view of a strategic area of the city.

3.2.3- Fóssil Vivo Project: The Fóssil Vivo Project performs the association between the scientific research activity and the measures directed to education, protection of fossiliferous deposits and stimulation of the economic activity in Peirópolis area, through the scientific tourism. It is foreseen investments for the improvement of facilities and construction of supporting areas to the Centro de

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Pesquisas Paleontológicas Llewellyn Ivor Price. The following specific activities are also foreseen: (i) structuring of the paleontologic safeguard and recovery for the increase of the existent annual collection; (ii) repair and enlargement of the Dinosaurs Museum; (iii) repair and installation of geo-paleontology labs; (iv) construction of public WC’S; (v) construction and repair of the Centro de Apoio ao Turismo, Ensino, Pesquisa e Extensão [Tourism, Instruction, Research and Extension Supporting Center]; (vi) urbanization of the internal and external areas of Centro Price; (vii) plan and communication and marketing; (viii) purchase of equipment, furniture and thematic park for children recreation; (ix) revitalization and recovery of the old Caieira do Meio; (x) development and implantation of the paisagistic project, including the Jardim Paleontológico;

3.3-MANAGEMENT AND PLANNING

Comprise a series of measures which aims at contributing so that Uberaba’s Local Authority bodies may perform more effectively and efficiently the functions proper to it through direct assignments within the Project’s action field. So, it shall include efforts in order to increase personnel qualification in several thematic areas of Project’s interest, operational updating, reinforcement of Local Authority’s environmental inspection ability and development of specific studies. It is foreseen the performance of activities for reinforcing actions within environmental sanitation, preservation and recovery areas (by equipping the Environmental Guard and the Environmental Municipal Secretariat; development of technical and operational procedures manuals). Environmental educational projects, social communication plan, personnel qualification, implementation of geoprocessing and structuring of the Project’s management system.

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LEGENDA

EMISSÁRIO PROPOSTO

INTERCEPTOR PROPOSTO

ETE UBERABA

ETE CONQUISTINHA

RESERVATÓRIOS DE AMORTECIMENTO DE CHEIAS

INTERCEPTOR RIO UBERABA MARGEM ESQUERDA - CONCLUÍDO

PARQUE URBANO

CANAIS PROPOSTOS

PROJETO ÁGUA VIVA – MAPA DE INTERVENÇÕES

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4 – ENVIRONMENTAL ANALYSIS

4.1-SAFEGUARDS OF THE WORLD BANK

The Project was rated in the “A” category, pursuant to the environmental policies of the World Bank, and the following “Safeguards” have been requested: (i) Environmental Assessment (OP 4.01); (ii) Natural Habitats (OP 4.04); (iii) Cultural Property (OP 4.11.03); (iv) Dams’ Security. The project properly approached in details the impacts related to these safeguards and proposed the required mitigating measures.

4.1.1-OP 4.01 Environmental Assessment

There has been developed an Environmental Assessment Report in compliance with the environmental policies of the Bank, applicable to the “A”Category Projects. The Project comprises the interventions related to the improvement of the sanitation public services (Water supply and sanitary sewage), flood control in the urban area, environmental recovery of Uberaba river’s basin, which has been legally defined as an “environmental protection area”, measures to support the preservation of city’s cultural inheritance, construction of the urban park and government and planning actions. The mitigating measure of the negative impacts have been included in an Environmental Management Plan, with the associated costs, the responsibilities for its implementation and the schedules.

There were public consultations during the environmental licensing of the Project’s components and during the studies of the social evaluation. They were complemented by a consultation during the Project’s preparatory phase, which occurred on February 2nd, 2005, in which the Environmental Assessment Report which has been previously developed was presented and discussed.

4.1.2-OP 4.04 Natural Habitats

The Safeguard Policy of Natural Habitat was demanded by the Água Viva Project due to the fact that there are proposals of interventions in Uberaba river’s Environmental Protection Area – APA, a maintenance unit of sustainable use and in permanent preservation areas (areas of 30 m of each side of the seasonal bed of watercourses) according to the Forest Code.

Uberaba river’s APA was organized with the object of protecting the hydric resources of the basin as the main water supply source of the city of Uberaba. Initially, the Project planned the construction of a dam in the Uberaba river within an APA area. During the Project’s elaboration, this dam was not considered due to technical and environmental reasons and the proposed production system foresees the consolidation of the reversion from Claro river’s basin waters, being in compliance with APA’S objectives.

Regarding the intervention in the APPs, they are limited to the interceptor of the left margin of Uberaba river, which has already been constructed, to the interceptors that shall be implemented in Uberaba and Conquistinha’s systems, out of the urban area, and to the construction of the linear park along the Lages’ streamlet. The environmental law allows the performance of these kind of actions in the APPs. In addition, it is already foreseen recovery measures of the area affected by the interceptor which has been recently concluded, inclusively the vegetation recomposition. In relation to the interceptors that shall be built, there were advised some special cares in order to limit the suppression of the vegetation and measures to recover the vegetation that might be affected. The construction of the Linear Park of the Lajes’ streamlet is deemed a compensatory measure.

4.1.3- OP 4.11 Cultural Property

The Safeguard of the Cultural Property was demanded by the Água Viva Project due to the fact that Uberaba Municipal District comprises one of the larger and more important Paleontologic Sites in Brazil, with fossil records dated of 80 to 65 million years. Although the interventions expected by the Project are initially located in areas of non-potential occurrence of fossiliferous deposits, the Project, besides the measures for the strengthening the management of the paleontologic inheritance, foresees special procedures which shall

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be adopted during the construction phase with the support and supervision of the Centro de Pesquisas Paleontológicas. These procedures comprised in the Environmental Manual of Construction foresee: (i) previous field inspection (before issuance of the notice to bid for the works) of all expected interventions by a team of the Centro Paleontológico, evaluation of the possibility of sites’ occurrence and the measures to be adopted; (ii) definition of the general procedures of a “lucky safeguard” already defined in the manual and including training of the builder’s team, provision of explicative booklets, etc.

4.1.4- OP 4.37 Dam’s Security

The original conception of the Project foresaw: (i) the construction of the regulatory dam as a generator source for the water supply system of the city; (ii) dams forming detaining basins for the macro drainage system, i.e. the Leopoldino de Oliveira dam, already constructed, and three other proposed dams.

In compliance with the Bank’s policies and safeguards, there has been formed a Dam’s Security Panel during the development of the Project. In relation to the regulatory dam of Uberaba river, the Panel’s studies evidenced its technical non-feasibility, under the geotechnical and hydrologic aspects (required regularization ability).

In relation to the detaining basins, the studies of the macro drainage alternatives evidenced its insufficiency as a solution for the reduction of floods in the city within a recurrence period superior to 5 years. So, there only remains in the project the existent dam in Leopoldino de Oliveira detaining dam. In relation to it, the Dams’ Panel considered the existent documents of the project (executive and “as built” project) insufficient to make a safe assessment and suggested the performance of technical surveys, reference files and the exploration to know the site and specific essays to allow the analysis of the work stability. These studies shall be performed during the first execution year of the Project , in the basic project stage of the macro drainage system in order to assess the possibility of permanence of the detaining basin in the system and its operative rules.

It is important to emphasize that the studies of macro drainage alternatives, of the water supply alternatives, as well as the conclusions provided by the Dams’ Panel itself, resulted in beneficial changes under the technical, economical and environmental aspects in the conceptions of the flood control and water supply systems, with the elimination of the dams which were expected to be constructed.

4.2- GENERAL ENVIRONMENTAL IMPACTS

There has been identified, evaluated and interpreted the possible environmental impacts that may be caused by the implementation of the interventions proposed by the Água Viva project in the planning, implementing and operational phases of the enterprise, as well as proposal of mitigating measures of the negative impacts and the maximizing measures of the positive ones. There has been also assessed the impact of the solutions alternatives, even the dismissed ones, as these analyses were useful in the selection process of the solutions. The projects shall directly or indirectly benefit all Municipal District’s population.

4.2.1 – Positive Impacts

During the Planning and the Work Execution Phases

During the planning phase the main positive impacts are the increase of the associative forms of performance, the incentive to the gathering between the Municipal Secretariats and other intervening bodies in the Project. In order to reinforce these beneficial effects, there shall be developed social communication, environmental education, community participation, social and environmental management measures. During the work execution phase, the main positive impact refers to an increase of employment offer to the city’s population and the reinforcement to be adopted is to recommend the builders to give priority to the hiring of the local population.

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During the Operation Phase

The implementation of the Project shall result in the main positive impacts:

Recovery of the water quality of the region’s hydric resources – Lages streamlet, Conquistinha stream and Uberaba river.

Assurance of water supply to the city population even during critical dry seasons. Significant reduction of the flood events in the city, with the consequential economical benefits. Offer of public leisure areas to the population with the consequent social benefits.

In addition, the interventions of the Project shall have the following positive impacts:

Sanitary Sewage System: (i) improvement of the water quality of Uberaba and Conquistinha rivers; (ii) improvement of population’s health conditions. These impacts shall be reinforced with measures aimed at eliminating the crossed connections, monitoring of the water quality and health conditions. The simulations made with Qual 2E evidenced the following impacts in relation to the dissolved oxygen, under minimum flow conditions (Q7,10) of the receiver bodies: (i) no treatment: conditions consistent with class 4 (CONAMA Resolution 20/86), with the possibility of anaerobiosis along all Conquistinha and within 30 km of Uberaba River; (ii) with a preliminary treatment: the same conditions as the previous ones noticed in Conquistinha and in 10 Km of Uberaba River; (iii) treatment with a 90% reduction efficiency of the organic load: class 2 conditions in Uberaba river and class 3 in Conquistinha; In relation to the fecal coliforms, the class 2 conditions shall only occur with the implementation of ETEs disinfection. This measure shall be conditioned to the downstream uses. Water Supply System: (i) Assurance of water supply throughout the year, inclusively during the dry seasons; (ii) reduction of the water loss rate in the system, including recovery of part of wash water of ETA’s units; (iii) environmental improvement due to the elimination of ETA’S residues discharge; (iv) reduction of the system’s operational cost. These impacts shall be reinforced by operational improvement and maintenance measures of the system’s units.

Urban Drainage System: The flood control in the central area of Uberaba is the significant impact obtained with the implementation of the drainage system proposed in the Project. The implementation of the drainage system assures the control for a recurrence period of 25 years. Operational and maintenance measures shall reinforce this benefit.

Uberaba’s Environmental and Cultural Preservation/Recovery: The positive impacts of this component are: (i) the physical and environmental recovery and preservation of Uberaba river’s APA; (ii) consolidation of the cultural values and environmental focus; (iii) enlargement of the green and leisure areas; (iv) valorization of the real estates near the park; (v) increase of the fossil collection of Uberaba; (vi) potentialization of the paleontologic tourism; (vii) improvement of the social and economical conditions of Peirópolis. These impacts shall be reinforced by the implementation of environmental education measures.

Governing and Planning: The expected actions shall result in positive impacts for the Project’s implementation and to assure the sustainability in the long run.

4.2.2- Negative Impacts

During the Planning and Work Execution Phases

During the planning phase the main impact shall be the generation of expectations in the population that resides within the Project’s intervention areas. The development of the expected measures of social communication, environmental education and community participation in order to explain and stimulate population shall be the instruments to be used in order to assure full compliance of the population, considering the Project’s benefits. In relation to population’s expectations in relation to eventual problems of ETES’ operation, the local government has arranged for the community in the vicinity to visit Brasilia’s ETEs, showing its operation.

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During the work execution there are typical impacts of this phase related to the construction activities, especially in urban areas where the interface with the activity and the population is greater. The following impacts are common ones: (i) increase of the noise, dust, motor gas; (ii) interdiction of paths, pavements and accesses; (iii) traffic deviations and traffic of heavy vehicles; (iv) transit of people strange to neighborhood; (v) damages to public equipment and houses; (vi) damages to local business; (vii) deterioration of the urbanistic and paisagistic conditions; (viii) risk to the water quality,; (ix) workers and passers-by’s security, etc . These impacts are temporary and reversible and can be minimized through the adoption of proper preventive measures and constructive procedures and methods which are detailed in the Environmental Manual of Construction that is an integrating part of the Environmental Report.

The need to discharge materials, especially those deriving from the construction of drain galleries, requires specific measures for the selection and protection of the areas that shall be used and for the transportation of the materials. There shall be defined the specific routes and security conditions which are foreseen in the Environmental Manual of Construction.

The works of the sanitary sewage shall further require dispossessions and may cause vegetation suppression as well as the disturbance of the fauna, in a smaller scale. Some mitigating measures have been proposed in order to assure fair conditions for the compensation of the real estates and recovery of the vegetation affected.

Uberaba’s Municipal District has one of the largest and most important Paleontologic Site of Brazil. During the implantation of the interventions, the soil excavation may expose a great amount of sedimentary rocks from the cretaceous period, which may present fossils. The implementation of joint specific procedures with the Centro de Pesquisas Paleontológicas and those listed in the Environmental Manual of Construction is the proper measure to avoid damages to this cultural inheritance. On the other hand, these procedures guarantee the recovery, rescuing and maintenance of this material.

During the Operation Phase

Sanitary Sewage System: The negative impacts of this system within the operational phase shall be limited to: the possibility of obstruction and rupture of the collecting nets, odor emissions in the ETEs, eventual overflow of effluents to the watercourses and increase of the sewage fees collected from the attended population. Measures for the system’s operational improvement and maintenance, creation of a green belt in the ETEs, social communication and creation of a social fee have been suggested in order to mitigate the impacts considered hereinbefore.

Water Supply System: The negative impact of this system that is deemed significant is related to the flow alterations in Claro (downstream the water taking) and Saudade (downstream from the point where it receives the reverted flow of Claro river). It is advised the performance of the hydraulic/hydrological monitoring of the said courses in order to notify eventual control and repair measures.

Urban Drainage System: The system causes impacts especially in the work execution phase, as it has already been described. During the operation phase the transference of the flowing peaks downstream is the main negative impact of the proposed system. The system project shall foresee the implementation of energy dissipators and the protection of the natural imaginary line that crosses the deepest part of the valley itself.

Uberaba’s Cultural and Environmental Preservation /Recovery: There shall occur negative impacts from the persons affluence and to Peirópolis region due to the measures foreseen in the Fóssil Vivo Project. Valorization of sites, changes regarding the soil use, environmental degradation, increase in the water and electric energy consumption, vandalism and sound pollution are foreseeable consequences from an increase of the number of visitors to a place that is, presently, typically rural. The new direction of the economic activities requires qualification of the local labor, such as training to work in hotels, restaurant, execution of handcrafts and tourism guide. Besides, there must be established from now on a program for improving the security, the environmental education, planning and regulations for the zoning of the soil’s use.

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4.4- ENVIRONMENTAL MANAGEMENT PLAN

The Environmental Assessment Report comprises several mitigating, compensatory and reinforcement measures to assure the reduction of the negative impacts and the extension of the positive ones. These measures, as well as their costs, schedules and persons in charge for its implementation constitute the Environmental Management Plan, which shall be exposed next. Most part of the activities included in the Environmental Management Plan is included in the engineering project itself, and does not require a separate document.

4.4.1 – Environmental Management System: The Água Viva Project shall have as Borrower, before the World Bank, the Local Government of Uberaba and as the general coordinating body the Centro Operacional de Desenvolvimento e Saneamento de Uberaba – CODAU. One Program Management Unit- UGP – shall be implemented within CODAU’S scope and shall have the competition of the Technical Units, on behalf of other bodies of the local government pertaining to the sectors involved with the Program. The Environmental and Social Management System – SGSA – integrates itself to the Project Management System and shall be liable for: (i) coordinating the social and environmental measures of the Project; (ii) inspecting, following-up and directing the execution of the mitigating measures required in the environmental licenses and the recommendations of the Environmental Manual of Construction; (iii) implementing the subcomponents of the environmental educational and institutional strengthening. The costs of this activity are included in the Project’s Management and Administration.

4.4.2 – Social Communication Program (R$ 150,000.00): The objective of this program is to favor the Project implementation through the participation of the population which has been directly or indirectly affected by the interventions and, finally, of all the Municipal District’s population. The most active segments of the public and private community shall be notified about the Project’s main activities and implementation phases and shall be encouraged to participate actively of the enterprise. The Planning Municipal Secretariat shall be in charge of this activity.

4.4.3 – Sanitary and Environmental Education Program (R$ 300,000.00): There shall be implemented an environmental and sanitary program with local and extensive approaches. The extensive approach aims at diffusing to population in general the environmental values, concepts and information in order to increase the perception of the importance of the environment to the water quality, the biodiversity, the public health and, in short, the health quality. This is expected to motivate community to have an active participation in the environmental protection and preservation measures. The local approach shall be more directly directed to the population around the physical interventions and aims at subordinating and transforming the sanitary and environmental care into an effective event, having as its central axle the reality daily lived and experienced. There shall also be developed a Social and Environmental Monitoring program for the quality and quantity assessment of the social perception of the meaning of the Água Viva Project along the period and for a systematic follow-up of the values, concepts, assessments and collectivity practices, and their respective changes due to the environmental education measures. The Environmental and Sanitary Education program shall be held during the Project’s implementation period and the Environment Municipal Secretariat – SEMEA – shall be in charge of it, under the coordination of a Management Group comprised by representatives of UGP, of the Social Communication Advising Department, of the Education Municipal Secretariat and of SEMEA itself.

4.4.4 – Program for the Extinction of Crossed Connections (R$ 500,000.00): the

implementation of this program is essential to guarantee that the benefits arising from the

improvement of the water quality comprised in the Project are accomplished. The city’s sewage

and rainwater nets have been constructed along the term, being the sewage discharge into drain

pipes and vice-versa a common practice. The program shall be implemented by CODAU,

simultaneously with the interceptors works of each basin, and it shall be concluded six months

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after conclusion of the last interceptor.

4.4.5 – Operation and Security Program of Leopoldino de Oliveira Detaining Basin (R$ 35,000.00): In compliance with the recommendations of the Dams’ Security Panel, there shall be implemented an operation and security plan for the Leopoldino de Oliveira dam, in order to assure: (i) the correct operation of the equipment in relation to its specific function of preventing the flood; (ii) the security of the solid pieces of stonework of the dam against rupture risks and downstream damages; (iii) an alert system for all contingencies that may involve risks for the population; (iv) an assessment of the feasibility and security to use the area with leisure activities during the dry seasons. The program has been initiated in 2004 with the Dams’ Security Panel and shall be terminated in 2005.

4.4.6 – Monitoring of the Water Quality of Uberaba River and Conquistinha Stream. (R$ 120,000.00): There shall be implemented a monitoring plan of the waters of Uberaba river basin and of the Conquistinha stream, whose main objective shall be the verification of the efficiency of the measures implemented in the Project for the improvement of the water quality of these basins. It will also allow the acknowledge and repair of eventual problems concerning the water quality of the basins. Its results may be integrated to the Brazilian System of Information about the Hydric Resources. The Environment Municipal Secretariat – SEMEA - shall be liable for the implementation of the program. Other institutions shall take part of the production of information, diagnosis and monitoring of the waters within this Project scope, namely: FEAM, IGAM, CODAU.

4.4.7 – Hydrologic Monitoring (R$ 500,000.00): The proposed hydrologic monitoring shall provide information in order to assess Uberaba’s urban drainage system, improve the consistency of the hydrologic studies, allow the use of standards of hydrologic simulation which are more trustful and implement preventive and corrective measures for the urban drainage problems, i.e., to improve the urban drainage management system of the Municipal District. Its execution term is estimated in 5 years.

4.4.8 – Construction Environmental Manual: This Manual was developed to be used as a proper environmental practices guide which shall be defined by the companies that shall be hired for the execution of the works. So, it must be attached to the bidding process so that the companies may be previously instructed about the requirements. UGP and the constructing companies are liable for its implementation.

4.4.9 – Institutional Strengthening (R$ 2,900,000.00): From the characterization and analysis of the institutional environment of the Água Viva Project, an harmonic set of measures was defined considering the improvement of the legal, technical and management abilities of the municipal organizations involved in the execution of the Project and in the operation of the systems resulting from the investments foreseen therein. This set of measures is the vehicle (measure- medium) of institutional increment for the execution of the environmental and social programs of the Água Viva Project. So, the Institutional Strengthening Plan shall provide qualification of the organizations directly in charge of provision of public services related to environmental, urban infrastructure and sanitation management. The Environmental and the Work Planning Municipal Secretariats and the CODAU shall be the organizations which shall be prioritarily considered. There shall be implemented measures in order to equip the organizations, train personnel and develop technical and operational manuals.