Environmental and Social Management Framework for the Costa Rica Telecommunications Sector Modernization Project



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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 Rica is 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.




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