Morava Highway

MIGA has been requested to provide guarantees covering non-shareholder loans by JPMorgan Chase Bank N.A. London Branch (JPM) and other yet-to-be identified commercial lenders for the Morava Corridor Motorway (Morava motorway or the Project) developed by the Government of the Republic of Serbia (GoS). Further information on the proposed MIGA guarantee is available in the Summary of Proposed Guarantee. The Project is comprised of: (i) a 112 kilometer (km) greenfield dual-carriageway tolled motorway of which 10 km is an expansion of an existing road, and (ii) related river regulation works.  

The Morava motorway has a design speed of 130 km/h and is located approximately 200 km south of Belgrade in the West (Zapadna) Morava river valley, and largely follows approximately 138 km stretch of the 184 km long West Morava river. The Morava motorway will connect central Serbia and Pan-European Corridors 10 and 111. The Morava motorway, also known as the E761 Pojate-Preljina, spans from Pojate on the A1 (the North-South motorway in central Serbia) through Kruševac and up into Preljina near Čačak. The GoS considers the Morava motorway essential to building the economic corridor to the industrial city of Kruševac, connecting it with important regional commercial centers of Sarajevo, Bosnia and Herzegovina and the port city of Bar, Montenegro. 

The Morava motorway route alignment passes through predominantly agricultural areas, comprised of mixed irrigated and non-irrigated arable lands and areas with complex cultivation patterns, located across four Municipalities and three cities spanning 48 villages as follows: (i) Ćićevac Municipality (4 villages); (ii) Varvarin Municipality (2 villages); (iii) Trstenik Municipality (8 villages); (iv) Vrnjačka Banja Municipality (6 villages); (v) city of Kraljevo (11 villages); (vi) city of Kruševac (7 villages); and (vii) city of Čačak (10 villages). The motorway route is divided into three sectors and further into nine sections:  

• Sector 1 – Pojate-Krusevac (~ 28km) comprising Sections 1 to 3;  

• Sector 2 – Krusevac-Adrani (~ 53km) comprising Sections 4 to 7; and  

• Sector 3 – Adrani-Preljina (~ 31km) comprising Sections 8 and 9.   

Sector 1 provides a connection between Ćićevac and Varvarin municipalities and the city of Kruševac; Sector 2 provides a connection between Trstenik and Vrnjačka Banja municipalities and the city of Kraljevo and Sector 3 provides a connection between the cities of Kraljevo and Čačak. People have been living in the Project area for centuries and thus, there are multiple existing towns and roads and ongoing development activities from industrial activities to agricultural activities. 

The width of the Morava motorway right-of-way (RoW) varies between 700 and 900 meters (m) divided into six zones: (i) 2x15 m motorway; (ii) 5 m emergency zone on each side; (iii) 15 m fence zone (which considers land required for shoulders and the slopes of the embankment) - these 3 zones comprise the expropriation corridor of the motorway RoW noting that in some areas the expropriation corridor will be wider to account for river regulation works, motorway infrastructure and others; (iv) immediate protection zone of 40 m on each side; (v) wide protection zone of 40 m on each side; and (vi) large protection zone of 235 m on each side (the size of the protection zones will be further refined during detailed design) in some sections, the preliminary design of the motorway includes an additional 200 m (100 m each side) to the RoW to account for maintenance, parking, service areas and overpasses. Within the immediate protection zone (40 m on each side), land use restrictions, including prohibition of on any new construction, will be in place to allow safe operation and maintenance of the road.   

The motorway will also include the following components: (i) parking and rest areas accessible to road users; (ii) toll platforms for toll collection and access control; (iii) motorway infrastructure consisting of maintenance areas, bridges (ten bridge river crossings are planned, 9 crossing the West Morava river and 1 bridge crossing the Ibar river, with spans not exceeding 65 m and no piers exceeding 12 m height), overpasses and interchanges; (iv) telecommunication corridor within the 15 m fence zone, which includes building of ducts and manholes along the motorway at toe of the embankment infrastructure to allow for the future installation by CoS of fiber optic cable connected to mobile network base stations at rest areas and (v) temporary site facilities consisting of quarries and borrow pits, workers camp sites and storage and staging areas, and temporary access roads during construction.  

The current road infrastructure in the region is based on 100-year maximum flood protection level which was exceeded in the catastrophic 2014 flood event (largest flood on record in the Project area). Therefore, the Project also includes river regulation works along the West Morava river with the main objective of protecting the motorway from flooding. It will also provide some protection to assets in the valley from flooding (e.g. existing roads and bridges), stabilize the river route and control fluvial erosion. River regulation works are scattered along the 138 km stretch West Morava river and include bank protection, meander cut-offs (straightened, channelized sections of the river) and reconstruction of existing flood embankments. Total length of channelization of the main riverbed is approximately 30 km long, with the majority near Preljina, to control extremely pronounced meandering and fluvial erosion in the motorway vicinity. In total, 76.5 km of the West Morava river are estimated to be impacted by the river regulation works. As previously mentioned, the West Morava river is 184 km in length, meaning the Project will result in direct and indirect alterations to approximately 42% of the main river stem. 

Ownership of the Project sits with the Ministry of Construction, Transport and Infrastructure (MCTI). Corridors of Serbia (CoS) is fully owned by GoS, and was created in 2009 to lead the design, planning, commissioning, and supervision during construction of all national traffic infrastructure projects. CoS is overseeing the construction phase of the Project. Among others, CoS is responsible for land acquisition and expropriation activities. The operating entity for the Project will be Roads of Serbia (RoS), a State-owned enterprise which will be responsible for operations, maintenance, repair, and toll collection activities. The Serbian Public Water Management Company (PWMC) Srbijavode, also a State-owned enterprise will be responsible for the maintenance of the river regulation works.   

Most of the motorways in Serbia are tolled and road users who access the motorway are required to pay toll fees. The location, number of toll gates and toll booths was determined by RoS. Toll fees will be determined by RoS taking into account the existing road network system in Serbia. Local communities are not required to use the motorway (if they choose not to do so) and will still be able to use village roads to access their businesses, farms or any other local location. Landowners will also have access to their lands through overpasses and /or underpasses. 

The construction contract has been awarded to an international joint venture between Bechtel Corporation (Bechtel) of the United States and Enka İnşaat ve Sanayi A.Ş. (Enka) of Turkey operating as Bechtel ENKA UK Limited (BEJV) on a design and build basis. BEJV is responsible for the detailed design and construction of the motorway whereas the Jaroslav Cerni Institute for the Development of Water Resources (JCWI) together with the PWMC Srbijavode is responsible for the design of the river regulation after which BEJV is responsible for construction. Construction works are being undertaken in phases as follows:  

• Sector 1 – Construction started in November 2020 

• Sector 2 – Construction is anticipated to start in April 2022 

• Sector 3 – Construction started in June 2021. 

As of November 2020, construction activities have commenced in Sector 1, and include construction of the Krusevac Camp, preparatory works for the batch plant and beam production facility, bridge construction, clearing and grubbing activities at borrow pits. Execution designs or construction and final river regulation design are being developed. Construction completion and commencement of operations of the Project is expected in November 2023.  

An Early Disclosure of the Project’s Environmental and Social Impact Assessment (ESIA), comprising both the motorway and the river regulation works, was disclosed on MIGA’s website on January 8, 2021.  

The Project is a Category A under MIGA’s Policy on Environmental and Social Sustainability (2013) as it presents a number of significant risks and impacts, some of which are irreversible. Key environmental and social (E&S) risks/ impacts associated with the Project include physical and economic displacement; impacts on biodiversity, including on critical and natural habitat and ecosystem services. Other potential E&S risks and impacts include increase in noise, air emissions, contaminated stormwater, soil erosion, waste generation; flood risk and surface water run-off; occupational health and safety (including COVID-19 risks); influx management; and community health and safety, including traffic safety.  

As design responsibilities are divided between two separate entities for the motorway (BEJV) and for river regulations works (JCWI together with PWMC Srbijavode), there is a risk of lack of coordination between the two entities regarding operator interface and operational arrangements. Additionally, there is a risk incompatibility in the designs, resulting in inadequate flood protection if the designs are progressed separately or amended during construction without taking into account the need to integrate both designs which can only be effectively managed with good coordination and oversight. 

While all Performance Standards (PSs) are applicable to this Project, based on our current information, the Project will have impacts which must be managed in a manner consistent with the following Performance Standards: 

• PS1: Assessment and Management of Environmental and Social Risks and Impacts 

• PS2: Labor and Working Conditions 

• PS3: Resource Efficiency and Pollution Prevention  

• PS4: Community Health, Safety and Security 

• PS5: Land Acquisition and Involuntary Resettlement 

• PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources 

• PS8: Cultural Heritage 

PS 7 Indigenous Peoples is not applicable, since there are no Indigenous People (as defined in MIGA’s Performance Standards) in the Republic of Serbia. 

In addition, the following World Bank Group (WBG) Environmental, Health, and Safety (EHS) guidelines are applicable to the Project: 

• WBG General EHS Guidelines (2007) 

• WBG EHS Guidelines for Toll Roads (2007) 

• WBG EHS Guidelines for Construction Materials Extraction (2007). 

The IFC / EBRD guidance note Workers’ accommodation:  processes and standards (August 2009) was also considered in the context of the workers accommodation camps. 

The following documents were reviewed by MIGA:  

• Report on the Analysis of the Mutual Influence of the Water Regime and the Project Moravian Motorway E-761: Hydrological and hydraulic models and analysis. JCWI. April 2021 

• Morava Corridor Resettlement Action Plan (RAP) – Sector 2, prepared by ARUP,  September 2021 

• Morava Corridor Motorway Project, Serbia: Supplemental Lenders Information Package – Ecosystems Services Assessment (ESA), prepared by RINA, May 2021 

• Morava Corridor Motorway Project, Serbia: Supplementary Lender Information Package – Cultural Heritage Impact Assessment (CHIA), prepared by RINA, May 2021 

• Morava Corridor Motorway Project, Serbia: Supplementary Lender Information Package – Traffic Impact Assessment (TIA), prepared by RINA, May 2021 

• Morava Corridor Motorway Project, Serbia: Supplementary Lender Information Package – Alternative Analysis (AA), prepared by RINA, May 2021 

• Morava Corridor Motorway Project, Serbia: Supplementary Lender Information Package – Informed Consultation and Participation for River Regulation and Operational Noise Impact (ICP), prepared by RINA, April 2021 

• Biodiversity Offset Strategy, prepared by The Biodiversity Consultancy, February 2021 

• Critical Habitat Assessment, Morava Corridor Motorway Project, Serbia, prepared by The Biodiversity Consultancy (TBC), February 2021  

• Updated Biodiversity Impact Assessment, Morava Corridor Motorway Project, Serbia, prepared by The Biodiversity Consultancy, February 2021  

• Biodiversity Management Plan; prepared by The Biodiversity Consultancy, December 2020 

• Morava Corridor Resettlement Action Plan – Sectors 1 and 3, prepared by ARUP, December 2020 and February 2021 

• Morava Corridor Motorway Project – Lenders Technical Advisor Report, Prepared by Ramboll, November 2020 

• Morava Corridor Motorway Project – Climate Change Risk Assessment, Prepared by Ramboll, November 2020 

• Morava Corridor Motorway Project Environmental and Social Impact Assessment prepared by 2U1K, November 2020; 

• Morava Corridor Motorway Project Gap Analysis Report, prepared by Ramboll, April 2020 

• Resettlement and Livelihood Restoration Framework for Morava Corridor Motorway Project, prepared by 2U1K, January 2020 

Due to COVID-19 travel restrictions, MIGA was not able to undertake a due diligence site visit. In addition to reviewing the above documentation, MIGA’s due diligence has included ongoing discussions with the Project team (BEJV, Corridors of Serbia, JCWI, and consultants undertaking E&S and RAP studies) and lenders’ independent consultants. The Project lenders have engaged an independent environmental and social consultant (IESC) to review the E&S aspects of the Project against the Performance Standards (including climate-related aspects) and a lenders’ technical advisor (LTA) to review the motorway and river regulation design. The outcomes of these reviews have been shared with MIGA. In addition to reviewing the documents listed above, MIGA also reviewed BEJV’s draft environmental and social management plans for construction.  

MIGA’s due diligence review considered the E&S management planning process and documentation for the Project and identified gaps (if any) between these and MIGA’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable time period, are summarized in the paragraphs that follow and in the E&S Action Plan (ESAP) attached to this ESRS. Through the implementation of these measures, the Project is expected to be designed and operated in accordance with the Performance Standards. Key E&S issues associated with the Project business activities are summarized in the paragraphs that follow. 

PS1:  Assessment and Management of Environmental and Social Risks and Impacts 

Environmental and Social Assessment and Management System: Four national Environmental Impact Assessments (EIAs) were undertaken by GoS, namely the Institute of Transportation for sectors 1 (Sections 1,2, 3)and 2 (Sections 4, 5, 6, 7) and Highways Institute for sector 3 (Sections 8a 8b, 9)  were prepared to national standards. An additional Environmental and Social Impact Assessment (ESIA) to meet Performance Standard (PS) requirements commissioned by CoS was conducted in 2020.  

As part of the ESIA, an E&S Management System (ESMS) framework outlining the key elements to be developed as part of the ESMS was prepared for the Project. The ESMS framework outlines the different roles and responsibilities of CoS as the Project owner, BEJV as the construction contractor and RoS as the Project operator. The ESMS framework is aligned with PS1 requirements and includes the following elements: (i) policy; (ii) identification of risks and impacts; (iii) management programs; (iv) organizational capacity and competency; (v) emergency preparedness and response; (vi) stakeholder engagement; and (vii) monitoring and review. 

The Project will develop a  specific ESMS for the construction phase in line with CoS Integrated Management System (IMS) encompassing Quality, Environment, Health and Safety and in line with BEJV’s parent companies’ International Organization for Standardization (ISO)14001:2015 (environmental management) and ISO 45001:2018 (occupational health and safety management) standards which will be subject to continual improvement throughout the Project cycle. RoS has an ISO14001:2015 certified environmental management system in place. PWMC Srbijavode currently has a management system in place, components of which will be incorporated into the Project-specific ESMS.. As per the ESAP #1, CoS, BEJV, RoS and PWMC Srbijavode will be required to develop and implement Project-specific ESMSs for construction and operations phases of the Project respectively taking into account PS requirements.  

Policy: CoS has developed a draft E&S policy specific to the Project that sets out the Project’s commitments to prevent, minimize and otherwise mitigate environmental and social negative impacts with a commitment to continuously improve E&S performance which will be revised and updated to take into account the findings of the ESIA supplementary studies (ESAP #1). BEJV has also developed and implemented an Environment, Safety and Health (ES&H) policy (2020) applicable to the construction phase of the Project that includes among others, commitments to the “prevention of harm to the environment and the safety, health and well-being of employees and local communities”. 

Identification of Risks and Impacts: As previously mentioned, four national EIAs to assess the Project against national standards were undertaken. The current status of the national EIAs is as follows: 

• The EIAs for Sectors 1 (section 1, 2, 3) and 3 (section 8a, 8b and section 9, which were covered by 2 separate EIAs) have undergone a public disclosure process, and the EIA reports for section 1 and 3 were approved in 2020; 

• The EIA report for Sector 2 (section 4, 5, 6, and section 7) has been submitted for approval, final report is expected in the second half of 2021. The alignment in section 2 was shifted to avoid flood areas.   

A gap assessment between the national EIAs and PS requirements was carried out in April 2019. Gaps in relation to social, archeological and biodiversity assessment and PS requirements, among others were identified. In order to address these gaps, an ESIA which is overall in line with the PS and WBG EHS guidelines was prepared that built on the information in the national EIAs, looking at the entire motorway alignment (Sectors 1 to 3) and river regulation works. As part of the ESIA, additional baseline data and assessments were conducted to close the gaps identified. The ESIA process commenced in February 2019 and a final report was issued November 2020. The Project will also develop and maintain an E&S aspects and impacts register for construction and operations and will update the register in the event of any changes to Project design or execution methods that are not assessed in existing E&S documentation, supported by detailed supplementary impact assessments where required (e.g. changes to the telecommunication corridor, changes to downstream impacts following completion of 2D hydrological and hydraulic modelling) (ESAP #2 and #3). 

Supplemental studies that accompany the ESIA are being undertaken to address gaps identified during the independent review of the ESIA including an alternatives assessment for the borrow pit and quarries, impacts of the river regulation; risks associated with the changing climate; evaluation of critical habitat; ecosystem services assessment; cultural heritage assessment. The Project ESIA and supplemental studies which have already been completed accompany this disclosure.  

A cumulative impact assessment (CIA) was undertaken as part of the ESIA. Significant cumulative impacts as a result of the Project were not identified mainly because of the uncertainty around other future proposed projects including: (i) establishment of logistic centers in Čačak and Kraljevo cities, (ii) establishment of industrial centers in Kraljevo, Kruševac, Čačak cities and Trstenik, Varvarin and Ćićevac municipalities; and (iii) reconstruction and rehabilitation of railway systems. Information associated with these future projects such as location, size, start date of construction among others are not yet known. The CIA also addressed potential cumulative impacts associated with potential run of river dams along the West Morava River; however, these dams are no longer included in the approved spatial plan for the area. Nevertheless, this will not affect the commitments arising from the CIA. As stipulated in the ESIA, the findings of the CIA will be shared with the relevant Ministries, so that cumulative impacts can be considered as future developments take place.  

Assessment of alternatives regarding the river regulation and motorway alignment was undertaken throughout the various project feasibility, design and development stages. The general design of the river regulation commenced in 2007, and the process of defining the motorway alignment within the West Morava river valley started in 2008 with assessment of three potential routes as part of the general design and pre-feasibility study. In 2012 – 2013 preliminary and main designs were conducted, which informed the Spatial Plan of Special Purpose of the Infrastructure Corridor of the E761 Motorway2 (Spatial Plan). A Hydrotechnical Study was conducted in 2016 to take into account the 2014 flood event and integrate the motorway and river regulation designs. A new Spatial Plan was subsequently developed between 2017 – 2020, considering the Hydrotechnical Study (2016), additional baseline data and preliminary motorway and river regulation designs. In addition, extensive consultations on the Spatial Plan were undertaken with Project Affected Peoples (PAPs) and interested parties in July/August 2019. Construction permit designs for the motorway and river regulation designs commenced in 2020 and are ongoing. According to the ESIA, aspects such as the topography and the hydrological conditions of the West Morava river valley as well as avoidance of natural and archeological protected areas were considered in the selection of the final route alignment. The ESIA and supplemental studies were conducted based on a fixed route alignment, the focus of the mitigation measures was therefore in relation to the design of the motorway and river regulation works and management tools instead of route re-alignment.  

The West Morava river is characterized by significant meandering with a range of features such as eddies, pools, riffles, levees, point bars, and braided channels. The proposed river regulation works involves two main types of interventions: (i) protection and stabilization of riverbanks along the river channel in locations where the motorway route is in the immediate vicinity of the West Morava riverbanks and (ii) stabilization of the main river channel by meander cut-offs to minimize the potential for intensive erosion along the motorway route. The design of the river realignment is intended to alleviate flooding along the West Morava river valley, providing a shorter route with enhanced capacity, consequently allowing water to reach downstream more quickly. The potential for the realignment to exacerbate downstream flood events was considered initially through 1-dimensional (1D) and subsequently 2-dimensional (2D) hydraulic modelling. The design of the river regulation to date was initially based on a 1D hydraulic model that was completed in December 2016 to assess the flood hazard at the site and to inform flood risk management and preliminary designs for the proposed river regulation. The subsequent 2D hydrological and hydraulic model was undertaken by JCWI in early 2021 to optimize the design of the river regulation works and evaluate present-day and future potential flood risks at a catchment level enabling assessment of flood scenarios for the motorway and of impacts of receptors downstream of the Project. The 2D model The 2D model included  rainfall scenarios derived from an ensemble of climate models – these models have shown to provide reliable projections of potential changes in rainfall characteristics for the region over near, mid and long-term time horizons under multiple climate warming scenarios. Preliminary results of the 2D modelling show that, under both existing climate conditions and climate change scenarios, the construction of the proposed river regulation works, as currently designed, would reduce flooding in Sector 3; however, is likely to increase flood risk in Sectors 1 and 2. Detailed design of both the river regulation and motorway features (e.g. bridges and culverts) is ongoing, and JCWI have expressed confidence that flood risk can be reduced to acceptable levels in Sectors 1 and 2. No changes to flood patterns are anticipated further downstream beyond Sector 1. The 2D modelling also demonstrated that there are sufficient drainage allowances, that the motorway is climate resilient and should not flood under more frequent and intensified future extreme rainfall events. 

Per ESAP # 3, the 2D hydrological and hydraulic model will among others, inform (i) the final river regulation design, including climate change allowance and (ii) the chemical and ecological status of waterbodies affected by the Project in line with the European Union (EU) Water Framework Directive (WFD)3 or similar assessment. The results of the 2D modelling highlight a requirement for several moderate improvements to the design of the river regulation and motorway works to further mitigate flood risks. Once the designs are updated and remodeled, the residual risks will be incorporated into an updated aspects and impacts register and relevant managements plans and procedures, including liaison with local authorities regarding development of a river basin / catchment management plan. The primary residual risk is likely to be flooding of some residential, industrial, and agricultural land during low frequency, extreme rainfall events. The scope of potential flooding prior to any mitigation or design changes is summarized under PS5. Following design optimization and consideration of mitigation measures, the amount of area affected by flooding is likely to be less than that presented under PS5.  

The West Morava river arises at the confluence of the Moravica and Djetina rivers and forms the headwater of the Great Morava river as it joins the South Morava river. The Great Morava river is a left tributary of the Danube river and runs for approximately 185 km from the confluence of the South Morava and West Morava rivers before joining the Danube river. Preliminary results of the 2D hydrological and hydraulic modelling indicate that transboundary impacts as a result of the river regulation works are unlikely. 

Climate change is likely to increase the frequency and intensity of precipitation and temperature related climate hazards for the Project region.  Site-specific observational data and climate change projections from an ensemble of climate models suggest a clear increasing trend for several climate hazards which could present challenges to the Project. These climate hazards include: flooding due to (i) an increasing intensity of short-duration extreme precipitation events, (ii) an increase in the number of consecutive precipitation days and heatwaves due to an increase in the number of consecutive days with temperatures exceeding 35 degrees Celsius. A climate change risk assessment has been conducted for the Project. As mentioned above, the 2D hydrological and hydraulic model also incorporates climate change projections to assess the materiality of flood risks on the lifecycle of the Project and to define a “climate change allowance” for critical drainage sections to further lower the risk of flooding over the long term (ESAP #3). Temperature related impacts on the Project are expected to be immaterial.  

The Social Impact Assessment in the ESIA, considered, among others gender based discrimination/ violence (GBV) and included the following mitigation measures which will be incorporated in the Project’s Construction Environmental and Social Management and Monitoring Plan (CESMMP): (i) hiring of women Community Relation Officers to support the Project to more freely engage with women in the affected communities; (ii) developing and implementing a workers’ code of conduct that includes provisions on gender equality and sexual harassment and training; (iii) providing cultural awareness training; and (iv) incorporating provisions in the grievance redress mechanism to adequately and sensitively address GBV complaints.  

Management Programs: The ESIA includes an Environmental and Social Management and Monitoring Plan (ESMMP) framework that captures the proposed mitigation and management measures to be implemented during design, construction and operation phases of the Project. The ESMMP describes the roles and responsibilities and the linkages of the different responsible parties in the Project – CoS, BEJV and RoS. PWMC Srbijavode will be responsible for the operations and maintenance of the river regulation works and will develop Project specific ESMMPs as described below.  

Per ESAP #4, the Project will develop a Construction ESMMP (CESMMP) and implementation plan  that links to the Project ESMS, including stakeholder mapping, clear roles and responsibilities, evidence of engagement and commitment from third parties, and E&S capacity for CoS, JWCI , BEJV and other stakeholders. In addition to the Project’s CESMMP, BEJV will also develop and implement a CESMMP. As part of the CESMMP, BEJV prepared two overarching plans to manage E&S impacts: the Environment, Safety and Health (ESH) Management Plan, and the Project Environmental Management Plan (PEMP) supported by other topic-specific E&S management plans (including but not limited to emergency preparedness and response, pandemic preparedness among others) which will be revised to incorporate lender comments. BEJV will require that all subcontractors, suppliers, visitors, and any parties undertaking work for BEJV adhere to these plans.  

The Project will be required to prepare an Operations ESMMP (OESMMP) for the road and river regulations operations and maintenance respectively prior to the commencement of operations (ESAP #5) which will include among others, a management of change procedure considering E&S implications when planning for changes in design, processes and activities and mitigation measures. 

Organizational Capacity and Competency: During construction, BEJV Project Management Team (PMT) has the responsibility for overall management of the Project and overall E&S accountability, reporting to CoS. The planned E&S organizational structure includes: (i) an Environment, Safety and Health (ESH) Manager who maintains overall responsibility for ESH matters under the direction of the PMT; (ii) Deputy ESH manager responsible for ensuring adequate resources are assigned to work sites and to directly manage the field execution team; (iii) Licensed Safety Engineer (as required by Serbian legislation) responsible for providing technical support to ensure compliance with Serbian legislation, regulation and Good International Industry Practice (GIIP); (iv) Environment Lead responsible for ensuring that environmental standards, requirements and commitments are adequately planned and implemented; and (v) field-based ESH supervisors/ specialists reporting to the Deputy EHS manager assigned to specific locations/ sections of the Project. BEJV also requires its subcontractors to assign field-based ESH personnel, the level of qualification and number of ESH personnel will vary depending on the level of risk and the number of workers involved in the activity. E&S training of BEJV and contractor workers will be provided by BEJV ESH specialists or subject matter experts, as required. Subcontractors are also required to develop and implement their specific ESH training program as well as participate in the Project training as per the Project training plan prepared by BEJV. 

There is also a separate Public Relations, Sustainability / Community Relations (PRSCR) department overseen by a PRSCR Manager  with the responsibility to manage social risks and performance focusing on impacts and benefits to communities supported by a Public Relations lead and a Community relations lead and three Community Relation Officers (CROs) (including a woman CROs). In addition to in-house specialists, BEJV also relies on corporate subject matter experts that provide functional support, expertise and assessment of the ESH program on a periodic basis. Per ESAP # 6 BEJV will fill all vacant E&S positions as per its staffing plan prior to the start of construction and maintain an adequate team throughout MIGA’s guarantee. Prior to the start of operations, roles and responsibilities for E&S staff will be outlined in the operations ESMS for the motorway and river regulations O&M. At a minimum, E&S staffing is expected to include an ESH Manager (or similar) supported by a team including health and safety, environment and community relations officers (ESAP #6).   

Emergency Preparedness and Response: BEJV has developed an Emergency Response and Incident Management Plan (ERIMP) (2020) covering BEJV’s activities associated with the construction of the Project. The ERIMP identifies among others, (i) key roles within BEJV and their responsibilities in an emergency situation, (ii) contingencies for a variety of potential emergency situations including fire, natural hazards, leaks and spills, security events among others. The ERIMP will be subject to internal monitoring and review, in response to changing circumstances as well as internal practices. The ERIMP references the Pandemic Preparedness Plan which provides information, guidance and specific actions to workers and dependents in the event of potential or actual exposure and reasoned proactive measures to prevent the spread of illness including viruses consistent with World Health Organization (WHO) Pandemic Influenza Preparedness Framework and guidance from the Ministry of Health in Serbia. The Pandemic Preparedness Plan will be revised to include a COVID-19 risk assessment prior to construction mobilization and workers’ camp management plan (ESAP #4). An ERIMP and Pandemic Preparedness Plan will also be prepared as part of the OESMMP for the motorway and river regulation prior to the start of operations (ESAP # 5).    

Monitoring and Review: BEJV and the Project operator will undertake regular E&S monitoring to demonstrate compliance with national environmental standards (in line with the Ministry of Environmental Protection requirements in Serbia) and PS requirements. E&S monitoring plans will be developed as part of the CESMMP and OESMMP, which will include parameters to be monitored; monitoring locations; methods and frequency of monitoring; and criteria against which compliance and performance will be assessed (ESAP #4 & 5). BEJV will be responsible for day to day monitoring during construction. In addition, CoS will conduct site visits and inspections of the Project and will raise findings with BEJV as part of its mandate. During construction, semi-annual E&S performance reports will be shared with MIGA and lenders (COVENANT). An Independent Environmental and Social Consultant (IESC) will be appointed to undertake independent monitoring of ESH, labor and social aspects of construction activities (COVENANT). A lenders technical advisor (LTA) will also be engaged to review detailed design of the motorway and river regulations and oversee the coordination and integration of both designs being undertaken by separate entities and that the findings from additional studies such as the hydrological study are incorporated in the designs (COVENANT). Once construction is complete and toll collection is implemented, the Project will be required to submit at least annual E&S monitoring reports to MIGA (COVENANT). 

Stakeholder Engagement: Stakeholder engagement for the Project has been undertaken through the disclosure and engagement on the Project Spatial Plans and the national EIAs, and through engagement on the ESIA. The original Project Spatial Plans were publicly disclosed through public participation meetings in 2012 and further disclosure took place in 2017 and 2019, following revisions made to the spatial plans after the 2014 flood event. Disclosure also included providing physical copies of the reports at local authority offices, electronic copies on the MCTI website. 

Public disclosure activities for the national EIAs as of January 2021 are as follows: 

• The EIA Study for Sector 1 was made available for review at the Municipality of Kruševac, Ćićevac and Varvarin or Ministry website and a public meeting was held in August 2019 at the Municipality of Kruševac 

• The EIA Study for Sector 3 was made available for review in January 2020, and a public meeting was held in February 2020 in Kraljevo 

• The EIA Study for Sector 2 is pending formal decision of acceptance by Ministry for Environmental Protection.   

Several rounds of stakeholder consultations, starting in March 2019, have taken place in preparation of the ESIAs, these included community level surveys and household surveys in all villages, focus group discussions, meetings with nongovernmental organizations (NGOs) and municipality leaders. More recently, ESIA consultations were undertaken in September 2020 in all affected municipalities and cities and included participation from the municipality officials, community members, business owners, NGOs and local media (TV and Newspaper).  Key concerns raised during these consultations included expropriation activities, river regulation works and others. These concerns have been included and addressed in the ESIA.  

Planned and ongoing land acquisition consultations are incorporating appropriate COVID-19 measures such as virtual consultations. In addition, in December 2020 and January 2021 topic specific consultations with PAPs, NGOs, Municipality and city leaders and others were undertaken to present potentially significant impacts related to river regulation works (including habitat loss and impacts on ecosystem services associated with the river) and motorway noise. Following design updates and once the residual risk of flooding is confirmed, consultation will be undertaken with individual and / or communities who are potentially affected by flooding. 

A Stakeholder Engagement Plan (SEP) for the Project is disclosed with the ESIA, and identifies PAPs, vulnerable groups and other stakeholders (including governmental, technical, administrative, local communities, media, NGOs and Project employees). 

External Communications, Grievance Mechanisms and Ongoing Reporting to Affected Communities: The SEP sets out an overarching grievance redress mechanism (GRM) for the Project and includes channels for submitting grievances (including land-acquisition related grievances) and  the process for assessing grievances and timeframes for responding to the complainant (where known) with responses provided on the Project website (under development) for anonymous grievances. BEJV has developed a Community Grievance Mechanism procedure in line with the overarching GRM and in line with PS 1 requirements. Prior to the start of operations, a GRM will be developed and implemented as part of the operations ESMS (ESAP #5). BEJV, as per its Public Relations Plan, will publish a periodic project newsletter which will cover topics such as Project milestones, schedules, and safety messages. Additionally, affected communities will be regularly informed of Project progress through the activities listed in the SEP. CoS also publicly discloses key E&S assessment and management documents on its website, including the ESIA.  

PS2:  Labor and Working Conditions 

Working Conditions and Management of Worker Relationship: The Project is expected to employ around 3100 workers on average and 6000 during peak construction (60% are expected to be expatriates and 40% Serbian nationals). During recruitment, priority will be given to local community members and whilst qualified local community members will be prioritized, a large proportion of the workforce will likely be sourced from outside the project area. Expatriate staff will be retained for project management and specialized construction related work. During operations it is anticipated that between 20 to 50 permanent local employees will be hired by RoS for the tolling station and toll collection of the motorway. Operations and maintenance of river regulation works will require approximately 30 workers, which will be hired by PWMC.  

The construction phase may result in Project induced in-migration of potential job-seekers. A Recruitment Plan will be prepared as part of the CESMMP to minimize the incentive for in-migration through formal and well-established recruitment practices, contracting practices, camp management and workforce accommodation among others (ESAP #7). 

Human Resources (HR) Policies and Procedures: BEJV has drafted Project-specific HR policies and procedures, as required in the ESIA, that articulates BEJV’s commitments to labor and working conditions and sets out minimum requirements for labor management for the construction phase in line with PS2 requirements. Draft policies and procedures include: National Recruitment Policy, Labor Relations Management Plan, Human Resources General Procedure, Staff Discipline, Project Work Rules and Workers Grievance Mechanism. Per (ESAP #7) the draft HR policies and procedures will be finalized and will also include: (i) a worker code of conduct (taking into account GBV) (ii) freedom of association, and (iii) a demobilization plan following completion of construction. These HR requirements, including the labor grievance mechanism, will apply to all project workers including those employed by subcontractors and be made readily accessible and clearly communicated at induction and through the provision of additional sensitization and training. BEJV and CoS will undertake regular labor audits of the subcontractors, which will be shared with MIGA (ESAP #9). The Project will prepare human resources policies and procedures as specified in the Project’s ESIA and in line with PS2 requirements prior to the start of the operations phase (ESAP #8). 

Working Conditions and Terms of Employment: The ESIA commits the Project to ensure that workers have written contracts which state working conditions and the terms of employment are in line with the requirements of national legislation and PS2.  

Two temporary construction worker camps and possibly one additional camp are planned along the motorway route and are expected to accommodate approximately 2500 expatriate workers, depending on the Project needs, workers may also be accommodated in rented hotel rooms or apartments under the supervision of the Camp Operations. Local workers from nearby communities will be bussed daily to and from the Project work sites. No on-site accommodation is expected for the operations phase. Workers’ accommodations will be provided in line with the IFC / EBRD guidance note Workers’ accommodation:  processes and standards (August 2009) and documented in a Camp Operation Plan (ESAP #4). The Camp Operation Plan will also integrate COVID-19 precautions in line with the Pandemic Preparedness Plan and COVID-19 risk assessment such as process for isolation or high-risk workers, quarantine requirements.    

Workers’ Organization: The Constitution of Serbia guarantees the freedom to join and form political, trade union and all other forms of associations reinforced by the Labor Law. In addition, Serbia has ratified all of the eight International Labor Organization (ILO) core conventions; including Collective Bargaining. Workers will be able to join trade unions of their choice and have the right to collective bargaining at any stage, should they choose to do so, and this commitment will be included in the Project’s HR policies and procedures (ESAP #7 and 8). 

Non-discrimination and Equal Opportunity: Non-discrimination and equal opportunity provisions are incorporated in a number of laws (Labor Law, Law on Prohibition of Discrimination, Law on Prohibition of Discrimination of Persons with Disabilities, Law on Prevention of Harassment at Work, Law on Gender Equality). The Law on Prevention of Harassment at Work (LPHW) applies also to cases of sexual harassment. Per the LPHW requirements, harassment and sexual harassment at work or related to work is prohibited and it is the responsibility of the employer to inform the employee in writing. BEJV has explicitly incorporated non-discrimination, equal opportunity and sexual misconduct and harassment provisions including related disciplinary actions in their draft HR policies and procedures. 

Grievance Mechanism: In line with the commitments stipulated in the ESIA, a workers’ grievance mechanism will be developed and implemented for construction and operations phase (ESAP #7 and 8). BEJV’s draft workers’ grievance mechanism describes the steps to raise and submit grievances (including anonymous grievances) and how grievances will be managed (including monitoring and reporting) as well as how to adequately and sensitively address GBV related grievances. During onboarding, workers will be informed about Grievance Mechanism Procedure (which will be made available to all BEJV staff and subcontractors) and how to submit complaints.  

Protecting the Work Force: The Project will not employ any person under the age of 18. The Project will also prohibit the use of forced labor.  

Occupational Health and Safety: The ESIA notes that due to the nature of the activities being undertaken during construction, occupational health and safety (OHS) is a key risk with the potential for accidents that may result in personal injuries and fatalities, as well as lost job-hours. Consideration of OHS is incorporated into BEJV’s ESH management plan consistent with ISO45001:2018. BEJV is dedicated to the principle of zero incidents which is based on four key elements: (i) demonstrated management, commitment and leadership; (ii) employee commitment and active engagement; (iii) forward looking planning of work activities and (iv) prevention-based ESH programs. BEJV’s approach to health and safety as stipulated in the draft ESH management plan includes clearly defining roles and responsibilities, hazard identification and control, safety in design, job pre-task planning and resourcing, monitoring, assessing and improving ESH performance and appropriate incident/accident notification and investigation and training. 

BEJV has identified “life critical requirements (LCR)” in relation to 11 defined areas: (i) drug and alcohol policy; (ii) working at height; (iii) confined space entry; (iv) lockout/ tagout; (v) rigging, lifting operations and suspended personnel platforms; (vi) defeating safety devices; (vii) barricades (hard and soft); (viii) mobile elevated work platforms, aerial boom lifts; (ix) scaffolding; (x) excavation and trenching; and (xi) avoid the vehicle/ mobile equipment personnel interface. The purpose of the LCR is to provide clear and consistent set of requirements and create a culture of consistent compliance and consequences for violations. BEJV will also implement Project specific ESH training as per ESH Training and Competence Plan. Specifically, for this Project, BEJV has developed a Work on or Near Water procedure, primarily focused on construction activities involving work on or in close proximity to water and that work is conducted in a safe manner. As part of the OESMMP, an operations OHS plan for the motorway and river regulation works respectively will be submitted to MIGA prior to the start of operations (ESAP #5). 

Workers Engaged by Third Parties: BEJV includes ESH standards as Special Conditions in all subcontracts and service contracts. ESH performance and compliance are primary considerations when evaluating and selecting companies to submit bids and awarding contracts as stipulated in ESH Subcontractor Selection & Management Procedure. BEJV subcontractors are held responsible for the actions of their “lower-tiered” subcontractors (requiring flow down of ESH requirements down the subcontractors), suppliers and vendors who provide services, materials, and equipment while at the work site. BEJV is responsible for monitoring compliance of ESH requirements of its subcontractors. BEJV regularly conducts internal and external quality management system audits of its contractors and subcontractors. 

Supply Chain: Supply chain elements identified in the ESIA comprise construction vehicles and machinery, food, laundry, security and transport services and other services to support accommodation camps. BEJV has in place a supply chain strategy to identify primary suppliers and ensure that OHS and other labor requirements (i.e. minimum age of employment, no forced labor) are cascaded to the primary supply chain. 

PS3:  Resource Efficiency and Pollution Prevention 

Resource Efficiency: The Project will require several resources such as water, aggregate, and fuel. All required resources will need to be used efficiently and all wastes managed in accordance with the waste management hierarchy. The CESMMP will incorporate resource efficiency commitments. Resource efficiency commitments for operations will be demonstrated through the motorway detailed design. A summary design report demonstrating compliance with PS, EHS guidelines will be developed per ESAP #10.  

Greenhouse Gases (GHG): GHG emissions were calculated for the construction and operations phase of the Project in accordance with the Greenhouse Gas Protocol, considering scope 1 and 2. GHG emissions are estimated to be approximately 97,000 tonnes of Carbon Dioxide equivalent per year (CO2e/year) during construction and approximately 30,900 tonnes of CO2e/year during operations. The supplemental Alternatives Assessment will provide alternative options to reduce Project related GHG emissions during design, construction and operation of the Project which will be incorporated in the motorway detailed design and relevant management plans. GHG emissions accounting will be undertaken on an annual basis and provided to MIGA as part of the Annual Monitoring Report. 

Water Consumption: Water will be required by the Project for several uses including water for two worker camps (approx. 25,000 tons of water per month), batch plants (approx. 10,000 tons of water per month) and asphalt plants (approx. 3,500 tons per month for 6 months).  

Water that will be supplied by water wells, will be subject to approval by the local authorities based on groundwater availability. Permits will be secured before use and groundwater abstraction shall not exceed permitted levels. The majority of settlements along the proposed route either use spring or well water for household consumption and irrigation. Unconfined aquifers are common in the project area however in some parts of the Morava river valley aquifer capacities are low and localized. Per ESAP #11, the Project will conduct a water balance assessment that demonstrates sustainable water use during construction activities and that the Project water requirements do not impact community water availability and ecological systems such as wetlands; the findings of the water balance assessment will be incorporated in a the appropriate management plans and will include among others commitments to  minimize groundwater extraction and identify opportunities to collect and re-use water where appropriate, and monitoring of groundwater level from existing groundwater wells located near the construction site.  

Aggregates: The proposed motorway is constructed predominately on embankment, with only limited cuttings in particular locations. It is estimated that more than 20 million (M) cubic meters of materials will need to be sourced from existing and/ or new adjacent borrow pits. A total of 52 potential borrow pits and quarries have been identified along the motorway route. Excavated materials resulting from river regulation works may also be used for construction, undisturbed riverbed will not be used for material extraction. Remnant river meanders will not be used as borrow. Unsuitable Soil Deposit Areas will be established along the motorway route, and will include agricultural land, existing abandoned borrow pits, riparian forest, and sections of cut-off river meanders that must be filled in for structural and flood protection reasons. BEJV has conducted an alternatives assessment of aggregate sources that looked at prioritizing Modified Habitat locations as much as possible and provide justification of quarries, borrow areas and unsuitable soil deposit areas sited on Natural Habitat. Per ESAP #12 The Project will develop and implement a Materials Management Plan in conjunction with an Earthworks Strategy including a cut and fill analysis, detailed sources and volumes of construction materials, mass haulage strategy and identification of opportunities for beneficial reuse of materials. Pollution Prevention 

Air Emissions: Construction activities will result in impacts to air quality from machinery and vehicles, emissions from temporary facilities (borrow pits, quarries, crushers, etc) and others. Significant sources of air emissions are Nitrogen Oxide (NOx), Sulphur Oxide (SOx), Particulate Matter (PM)10, PM2.5, Carbon Monoxide and Volatile Organic Compound (VOC). Modelling in the ESIA, indicated that air quality impacts as a result of construction and operations would be below national, EU, and WHO Ambient Air Guidelines/ WBG General EHS Guidelines and that impacts on air quality associated with maintenance activities (e.g. repaving) during operations are not considered significant. The ESIA identifies a range of mitigation measures to reduce impact on air quality during construction, such as vehicle speed limits, dust suppression methods among others which have been incorporated in the Project Environmental Management Plan (PEMP) as part of the CESMMP and will be included in the Quarry Management Plan (ESAP #4).   

Noise: The ESIA considers noise and vibration during both construction and operation phases of the Project supported by a noise and vibration modelling assessment. Potential sources of noise and vibration during construction include machinery, equipment and vehicles, demolition activities, production of gravel and concrete and construction works and blasting activities (using explosives) at quarries. Noise and vibration sources during operations will be from road traffic. Seventy-one noise sensitive receptors (69 residential buildings, 1 commercial and 1 hotel) were identified within 900 m of the axis of motorway, of which 21 are within 100 m of the of the motorway centerline.   

The ESIA identifies methods for prevention and control of noise and vibration sources during construction and operations. Measures for operational noise focused on the use of engineering controls (use of noise barriers etc.) and other measures as necessary, with details to be confirmed following detailed design. After installation of noise barriers, conservative modelling indicating that two residential building receptors are still expected to experience high impacts (exceedances above 10 decibels A (dBA)) and five residential building receptors are expected to experience moderate impacts (exceedances above 5 dBA) compared to daytime (55dBA) and nighttime (45dBA) noise level guidelines per the WBG EHS guidelines and national requirements. Where high to moderate impacts are expected, further engineering controls to reduce noise levels will be undertaken to reduce noise levels to within WBG EHS Guideline requirements. Sensitive receptors near vibration sources will be identified, evaluated and documented prior to the start of construction. If vibration estimates or measurements show potential for building damage, alternative construction measures will be considered. According to the vibration modelling results, no vibration impacts are expected during operations.  Noise and vibration mitigation measures are incorporated in the PEMP.  A Noise and Vibration Management Plan will be developed for operations as part of the OESMMP (ESAP #5).  If residual impacts are identified during operations, resettlement and compensation measures will be undertaken and documented in the Resettlement Action Plan (RAP), including if needed, ex-post expropriation (ESAP #14). 

Water Quality and Hydrology: The ESIA identifies Project activities which may impact surface and groundwater quality during construction and operations of the motorway and river regulation works such as spills or accidental releases of oil and petroleum products, uncontrolled discharge of wastewater and others, the significance of which is considered low post mitigation. According to the ESIA, the water quality in the areas sampled in the West Morava river are within the Serbian national water quality standards for rivers, streams and lakes. However, as a result of human activities, the water quality of the river is degraded (impacted by organic pollutants and some heavy metals) particularly in sections of the river close and downstream to existing towns where there is a lower water quality compared to sections further away. According to the Biodiversity Impact Assessment (2021), the longitudinal or lateral connectivity of the river are not expected to be affected, and the reaches of the West Morava river that will be impacted by the river regulation are of lower quality, retaining on average approximately 70% of their integrity. Preliminary 2D hydrological model results indicate that the potential water quality impacts downstream of the Project as a result of channelization of the West Morava river are expected to be very minor or negligible. Mitigation measures identified in the ESIA for construction will be incorporated in the CESMMP and in the OESMMP for operations and will include spill response and prevention and water quality management and monitoring (ESAP #4 and 5). River regulation works will also affect the current natural water flow by increasing the maximum flow by between 2% for a 1 in 100 year rainfall event and 5% for a 1 in 50 year rainfall event, (potentially altering the rate of erosion and increased sediment deposition in different sections of the river),  flood risks further discussed in PS4 (as it relates to impacts to community health and safety) and impacts to biodiversity (discussed in PS6). The introduction of new structures (e.g. bridges, culverts, impoundments and intakes) in the watercourse will also cause sediment to build up under, in or around them. The ESIA identifies a range of mitigation measures to be implemented including: new riverbeds will be curved and not straight with asymmetrical and relatively “natural” cross sections with a coarse gravel (permeable) base so that exchange with groundwater can continue; (ii) natural materials will be used to protect and strengthen banks as much as possible, where geotextile liner is needed, specifications of the geotextile liner will consider permeability; (iii) only essential works will be performed to stabilize banks prone to erosion; (iv) drainage channels and ponds will be built to receive excess surface water discharge; and afforestation activities.  

Other measures for working in or near water in line with GIIP will also be considered and detailed in the CESMMP and OESMMP such as refueling and other preparation works at least 50 m from the watercourse; when working in water, implement diversion isolation techniques; use sediment traps, netting and other mitigation measure to minimize waste and other materials falling into the watercourse; and monitoring of water turbidity upstream and downstream of river works.  

In addition to erosion risks from the river regulations, the motorway may also exacerbate erosion rates as a result of natural subsurface characteristics and excavation works, soil movement and removal of top surface. A Soil Erosion, Reinstatement and Landscape Management Plan will be developed and implemented for construction and operations (ESAP #4 and 5) and will include measures such as scheduling of works to avoid the rainy season, contouring and minimizing length and steepness of slopes, mulching to stabilize exposed areas among others. 

Construction of sealed roads increases the amount of impermeable surface area, which increases the rate of surface water runoff. A stormwater drainage risk assessment will be conducted in order to confirm that temporary and permanent stormwater drainage is adequately sized to mitigate adverse impacts on land use, surface water and sensitive ecological sites and mitigation measures incorporated in relevant plans (ESAP #13). The Project has identified the need for oil separators to be used for silty/soiled water from construction activities in order to treat water to meet national and international requirements prior to discharge. During operation, runoff from the motorway surface will be directed to a closed system (e.g. a network of underground drainage pipes connected to oil separators via gullies and manholes, or other alternative equivalent system). During operations, regular inspection and maintenance of erosion and runoff control features of the Morava motorway and river regulation works will be undertaken by RoS and PWMC Srbijavode in line with the OESMMP. 

Waste Management: Wastes during construction include earth material from excavations, hazardous and domestic waste. During operations, there will be some waste as a result of maintenance activities  (such as road resurfacing waste, vegetation waste from RoW and sediment and sludge from stormwater maintenance) and other wastes such as road litter, general solid waste from rest areas, animal carcasses. During the maintenance of river regulation works, removal of deposited sediments may be required. Volumes of construction waste from excavation are anticipated to be small in comparison to total materials excavated. It is estimated that a total of 740 kg of domestic waste will be produced per camp per day. The Project will develop and implement a Waste Management Plan for construction and operations (ESAP #4 and 5). The ESIA undertook a preliminary review of the landfills along the motorway route and determined that some were lacking adequate sanitary conditions. Final location of adequate and sanitary landfills will be determined as part of the Waste Management Plan.  

Anticipated sources of wastewater during construction include stormwater, sanitary wastewater and process wastewater from temporary facilities including the asphalt plant and concrete batching plant. Wastewater from operational project facilities such as service stations and maintenance stations will be connected to local/ municipal sewage network where possible. Where not possible, wastewater will be collected in septic tanks and will be transported by a licensed contractor to the nearest licensed wastewater treatment facility. Wastewater sources, volumes, quality, discharge options management and monitoring to meet applicable WBG General EHS guideline values, will be identified as part of the Project’s Wastewater Management Plan for construction and operations phases (ESAP #4 and 5).  

Hazardous Materials: Hazardous materials such as fuel, chemicals, additives, paint and others will be used during construction and operations. A Hazardous Materials Management Plan will be development and implemented for construction and operations as part of the CESMMP and OESMMP respectively (ESAP #4 and 5) and will include a hazard exposure and risk assessment of the different hazardous materials, procedures for appropriate storage, transportation, and disposal of hazardous materials.  

Pesticide Use and Management: Pesticides will not be used during construction. During operations, maintenance of the motorway RoW is necessary to avoid interface with vehicle. Regular maintenance of RoW to control vegetation may involve the use of mechanical methods (e.g. mowing), manual methods (e.g. hand pruning), and the use of herbicides. RoS will be required to implement an integrated vegetation management covering the edge of the road to the boundary of the RoW as well as river regulation structures and give preference to biological, mechanical, and thermal vegetation control measures where practical and avoid the use of chemical herbicides (ESAP #5).  

PS4:  Community Health, Safety and Security 

Community Health and Safety: Potential negative community health and safety impacts during construction stem from dust and noise due to the movement of heavy equipment, materials and project personnel, traffic accidents as well as influx of workers. During operations, negative impacts are expected to be related to noise, air emissions, traffic and transport of hazardous materials, flood risks, earthquakes and potential emergency scenarios. During operations, RoS will be responsible for the maintenance of the motorway RoW to keep it clear of obstacles and hazards. A Social Management Plan for construction and operation will be developed and implemented (ESAP #4 and 5) that details management and mitigation measures outlined in the ESIA, RAP and supplemental studies.   

During construction, in order to avoid interferences with the local community and use of local roads, the motorway corridor will be used as a “hauling road” as much as possible. Interferences will be minimized as the motorway and permanent structures are built. The Project may also result in reduced access for people travelling within or between a community. The detailed design of the motorway will include measures to maintain access to residences and agriculture fields (based on consultations with affected people) such as underpasses and overpasses. Where access is significantly affected, consultation will occur with the affected person to establish appropriate measures, including resettlement. Underpasses will also be designed with consideration to community safety (e.g. use of lighting for pedestrians where required (ESAP #10). A Traffic Management Plan (TMP) (2020) for construction has also been drafted that includes control measures for the effective management of traffic, deliveries and people-vehicle-equipment interface. The TMP will be revised for operations and will among others include monitoring, tracking and assessing traffic accident statistics (ESAP #4 and 5).  

Infrastructure and Equipment Design and Safety: As previously mentioned, the design of two main elements of the Project - the motorway and river regulation works - will be undertaken by separate teams BEJV and JCWI4 in coordination with PWMC Srbijavode for the main design. Both elements will be constructed by BEJV. Having two separate design teams can increase the risk of incompatibilities between the two elements during design or as a result of changes in construction. An LTA was appointed to review the Morava motorway design and river regulation. According to the LTA, the proposed designs were found to be in compliance with standards and the two main elements are being developed in close coordination. The design standards adopted for the motorway are in compliance with the Serbian Roads Design Manual (SRDM) and there is also flexibility to work with other standards and technical regulations issued by a foreign standardization body such as ISO, European Standard (EN), German Institute of Standardization (Deutsches Institut für Normung – DIN) and American Society for Testing Materials (ASTM). The design standards used are considered appropriate and in line with GIIP for the intended use of the road which will assure a safe road with no exceptional risks for road users, operator or maintenance staff. As mentioned in PS3, BEJV will also prepare a summary design report that demonstrates specific design measures including pedestrian safety (e.g. separation, crossings, use of fencing in consultation with project affected people) and traffic safety (e.g. installation and maintenance of all signs, signals, markings, and other devices used to regulate traffic) and copies of check certificates as evidence of the ongoing development of a compliant and safe design (ESAP #10). 

Some sections of the Morava motorway currently pass through the potential flood zone of the West Morava river. River regulation works are being primarily planned to protect the Morava motorway and its road users from flooding (and management of erosion) but will also offer some degree of protection to settlements along the proposed works. Potential downstream impacts and mitigations measures as a result of river regulation will be incorporated in relevant CESMMP and OESMMP (refer to PS1 for more information). Seismic activity has also been considered in the design, as the Project is located along a seismic fault line in the West Morava river valley. As a result, the Project has been designed to meet Eurocode 8: design structures for earthquake resistance.  

Hazardous Materials Management and Safety: As noted in PS3 all hazardous materials will be managed in accordance with the Hazardous Management Plan for construction and operations. 

Ecosystem Services: The Project will impact ecosystem services that communities rely on for livelihood, health, safety and recreational purposes. Ecosystem services are discussed in more detail in PS6. In addition to biodiversity management programs, the Project’s existing management plans such as the PEMP and Resettlement Action Plan (including livelihood restoration) provide a combination of mitigation measures to manage these impacts. 

Community Exposure to Disease: The presence of an incoming construction workforce is likely to increase the risks of transmitting diseases from the workforce to the communities of communicable diseases including sexually transmitted illnesses and COVID-19. The ESIA has identified a number of mitigation measures that will be implemented through the Workers’ code of conduct, Pandemic Response and Preparedness and ESH plan. Monitoring for influx will also be coordinated with local officials to minimize adverse societal impacts. 

Emergency Preparedness and Response: As mentioned in PS1, an ERIMP will be developed and implemented for construction and operations (ESAP #4 and 5). BEJV has drafted an ERIMP for construction which will be revised in consultation with affected communities to incorporate procedures for addressing emergencies that could affect surrounding communities and the role of community infrastructure as appropriate in responding to emergency events. 

Security Personnel: During construction BEJV will engage security personnel to safeguard construction sites. Security will be required during operations to safeguard money transfers from toll stations. During construction, security will be managed by the Project Security Manager (PSM). The PSM is the main point of contact between BEJV corporate security, private security, contractors and local security authorities. BEJV has drafted a Security Management Plan (SMP) that includes threat assessment, contingency/ evacuation plan, incident reporting and resolution, description of physical security (fencing, lighting, access and others). The SMP will be revised to be in line with IFC’s “Good Practice Handbook on the Use of Security Forces: Assessing and Managing Risks and Impacts” and GIIP, namely the Voluntary Principles on Security and Human Rights (ESAP #4) and will include (i) assessment of risks posed by the Project security arrangements to those within and outside the Project site, (ii) defining rules of conduct with respect to the use of force; (iii) raising of security related grievances via the community grievance mechanism; and (iv) responding to security related complaints and investigating allegations of unlawful or abusive acts by security personnel. RoS will also develop and implement a SMP for operations (ESAP #5). 

PS5:  Land Acquisition and Involuntary Resettlement  

The Project will require permanent and temporary land acquisition for the construction of the Morava motorway encompassing all structures, and river regulation works of the West Morava river, as well as temporary facilities (e.g. access roads, borrow pits, deposit areas, construction camps, etc.). The motorway passes through 4 municipalities and 3 cities encompassing 48 villages. As indicated under PS1, while the river regulation works will reduce flooding overall (i.e. total flooded area will decrease by approximately 2,800 ha, including 12 ha that will no longer be flooded in Sector 1; 375 ha no longer flooded in Sector 2 and 2,400 ha no longer flooded in Sector 3), they are likely to cause flooding in some areas within these sectors that are not currently affected by flooding. Depending on the risk and magnitude of potential flooding, this may result in physical and / or economic displacement. 

The number of households in villages in the Project affected area range from approximately 56 in in Sokolići (Čačak municipality) to 1331 in Novo Selo (Vrnjačka Banja municipality). The average household size is 3 people. Common sources of income in the project affected area are agriculture, salary-based employment (from industry, tourism and others) and pension. The level of unemployment varies from municipality and cities, ranging between 15 to 30% unemployment rate resulting in out-migration of the younger generation from the area. Construction of the Project is estimated to require approximately a total of 2,667 hectares (ha) of land, including 1,117 ha for permanent infrastructure and 1,550 ha for temporary facilities related to construction activities (construction camps, batch plants, asphalt plants, concrete batching plants), as follows:   

• Sector 1: Approximately 267 ha of land is permanently required for the Morava motorway and approximately 600 ha is required for temporary facilities.  

• Sector 2: Approximately 530 ha of land is permanently required for the Morava motorway and approximately 750 ha is required for temporary facilities. 

• Sector 3: Approximately 320 ha of land is required permanently for the Morava motorway and 200 ha is required for temporary facilities. 

The extent of land that does not currently flood, but that could potentially flood following construction of the Project is still to be confirmed, as the design is currently being reviewed and optimized to minimize flooding; however, for a 1 in 100-year rainfall event, with no design optimization, potential impacts are as follows: 

• Sector 1: Approximately 7 ha of urban land; 1.5 ha of industrial land and 52 ha of agricultural land would be flooded.  

• Sector 2: Approximately 1 ha of urban land; 3 ha of industrial land and 215 ha of agricultural land.  

• Sector 3: Approximately 44 ha of agricultural land. 

For construction of the road and river regulation works, the Project requires large-scale expropriation of predominantly agricultural land which mostly belongs to private owners.  This expropriation will result in physical and economic displacement. Impacts on agricultural land affected by flooding are expected to be minor and not require expropriation; and expropriation of urban and industrial land due to flooding remains to be determined; however, it is expected to be unlikely. All land acquisition is the responsibility of CoS, and therefore, as per MIGA’s PS5, land acquisition for this Project is considered Government-led resettlement. Land acquisition in Serbia is governed by Expropriation Law “Official Gazette RS”, No. 53/95, including amendment 23/01, 20/09, and 55/13. CoS has minimized physical displacement as much as possible by revising the Morava motorway alignment, per the revisions in the Spatial Plans. According to CoS, land acquisition is undertaken in three steps:  

1. Initial agreement and compensation payment are based on cadastral maps and only includes the land parcel to be expropriated.  

2. After the initial agreement, a census is conducted to identify assets (e.g., trees, wells, barns, houses) on the parcel; additional compensation is paid for these assets based on a second agreement (where there are crops, CoS acquires the assets after harvest, or in cases where this is not possible CoS compensates for the lost crop); and  

3. Assessment of structures on the land parcel is conducted by a third-party expert designated by the Municipality authority. 

As per the Expropriation Law, the price of land is determined by the tax authority. The municipal tax administration provides estimates of market value of land subject to expropriation, based on the price of land recorded within the private transactions of ownership, in the municipality or in the area closest to the parcels which are subject to expropriation. Compensation for affected structures is based on individual valuations conducted by certified valuation experts to determine the market value of the property, i.e. the amount needed to re-establish the same structure within the area. The Expropriation Law foresees the rights of PAPs to appeal compensation amounts (Art. 70). During the land acquisition process, an agreement or non-agreement letter regarding the size of the land and compensation values is provided to the PAP. If a PAP chooses to sign a non-agreement letter, the Municipality will start court proceedings on behalf of the PAP. 

Grievances related to land acquisition can also be raised through the Project’s overarching GRM referenced in PS1. In addition, land acquisition related grievances can be raised to BEJV team in the field who will subsequently inform CoS that is responsible for managing and responding to all land acquisition related grievances. 

The land acquisition process for Sector 1 started in February 2019 with the identification of landowners and the expropriation process started in April 2019 and is ongoing for those PAPs that did not sign the compensation agreement. 4059 parcels were identified corresponding to 3290 PAPs. Of the 4059 parcels, 66 parcels have structures that will be affected by the Project: 1 residential structure, 2 business structures (restaurant and farm) and 10 weekend houses and garden cottages as well as  auxiliary structures (water pipes, fences, wells among others)  corresponding to 109 PAPs including 1 residential owner, 2 business owners, 15 owners of weekend houses and garden cottages and 91 owners of auxiliary structures. In Sector 1, one PAP will be physically displaced and 74 PAPs who have chosen not to continue farming are considered to be moderately impacted and the remaining 3215 PAPs minorly impacted. The average affected land area ranges from 0.0001 ha to 1.11 ha. As of January 2021, there were 5 judicial court cases relating to Sector 1 and most resulted from disagreement with the land value assessment provided by the tax administration.  

The land acquisition process for Sector 3 started in April 2019 with the identification of landowners. The process identified 3,105 parcels corresponding to 2730 PAPs. Of the 3105 parcels, 49 parcels have structures that will be affected by the Project including: 5 residential structures, 2 business structures (car dealer shop and manufacturing shop) and 5 weekend houses and garden cottages as well as auxiliary structures (water pipes, fences, wells among others) corresponding to 98 PAPs including 7 residential owner, 5 owners of residential structures, 9 owners of weekend houses and garden cottages 2 business owners and 80 owners of auxiliary structures.  In Sector 3, 4 PAPs will be physically displaced (one of the residential owners does not live in the area) and 58 PAPs who have chosen not to continue farming are considered to be moderately impacted  and the remaining 2672 PAPs minorly impacted by economic displacement. The average affected land area ranges from 0.0001 ha to 1.95 ha. As of February 2021, there were 160 judicial court cases relating to Sector 3 and most resulted from disagreement with the land value assessment provided by the tax administration.  

The land acquisition process for Sector 2 started in December 2020. Review of Real Estate Cadastre data identified 3,244 privately-owned parcels of which, 45 parcels have structures used as permanent residence, 24 parcels have weekend houses and structures not used for permanent residence, 7 parcels have business structures and 197 have auxiliary structures. The remaining parcels are primarily agricultural land though some are also barren land and forested land.  The census and socio-economic surveys for Sector 2 representing 607 land parcels (including all parcels with structures).

CoS (through its consultants) developed a Resettlement and Livelihood Restoration Framework (RLRF) (2020) which outlines key land acquisition and resettlement principles and objectives to be followed, and the organizational arrangements and other criteria to be applied during Project implementation to ensure government-led land acquisition and compensation in line with PS5 requirements. The RLRF (disclosed with the ESRS) included a gap assessment between national legislation and PS5 as well as recommendations to be incorporated in the Resettlement Action Plan (RAP) to close the gaps. Key gaps relate to additional assistance to PAPs after physical and/ or economic resettlement and livelihood restoration, recognition of informal land owners or users, a requirement to establish a GRM among others. 

The RLRF includes a requirement for a Resettlement Action Plan (RAP) to be implemented prior to commencing any construction activities in the Sector. The RAP incorporates livelihood restoration activities to be developed once the physical footprint for the Project and individual Project components are defined and the necessary information becomes available. The RAPs for Sector 1 and Sector 3 have been prepared in line with PS5 requirements, setting out actions to close gaps between national legislation and PS5 requirements. The RAP for Sector 2 has been prepared and will be publicly disclosed per ESAP #14.   

A series of consultations have been undertaken in relation to land acquisition and resettlement with PAPs. As part of the expropriation process, individual consultation with PAPs is conducted by affected municipalities with the supervision of CoS. RLRF consultations were also carried out to obtain feedback on the RLRF in February 2020. Additional consultations were also undertaken in February 2021 as part of the RAP process for Sector 1 and consultations as part of the RAP process for Sector 3 were completed in April 2021. Consultations  undertaken as part of the RAP process for Sector 2 were completed in August 2021. 

During construction works BEJV may need to temporarily occupy privately-owned land for off-site locations. This process will be managed by BEJV. BEJV will notify CoS of any upcoming need for temporary occupancy of land along with the draft lease agreement with the landowner.   Temporary land lease agreements will be prepared in line with the RAP, RLRF and ESIA and will be subject to CoS review as requested. 

In line with the RAP, CoS will monitor the land acquisition process through internal, official institutional arrangements and prepare quarterly summaries to lenders. After construction, the RAPs may need to be revised to address residual impacts that will become evident after completion of construction (i.e. residual noise impacts) (ESAP #14). A completion audit will be conducted for each Sector no later than 12 months of the completion of the land acquisition process by an independent third party, to assess among others, that commitments in the RAP have been delivered and all services provided and that the mitigation actions prescribed have had the desired effect against baseline conditions (ESAP #15). Upon completion of a satisfactory audit and close-out of any related corrective actions, the resettlement process will be deemed complete. 

Any resettlement and / or compensation required due to flooding will be undertaken in line with the RLRF and following the process undertaken for the Sectors 1, 2 and 3 RAPs (ESAP #3). 

PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources 

To align with PS6, the Project has undertaken an ESIA (2020), a Critical Habitat Assessment (CHA) (2021), an updated habitat map and Biodiversity Impact Assessment (BIA) (2021), a Biodiversity Management Plan (BMP) (2021), and an Offset Strategy (2021). Consultation took place in November 2020 with species experts at relevant organizations, including the Hungarian Natural History Museum, the National Institute of the Republic of Serbia, and the University of Belgrade and the Institute of Nature Protection. 

The ESIA defined the environmental Area of Influence (AoI) as 500 m each side from the center line of the motorway and a 500 m buffer around all Project infrastructure. The ESIA and CHA determined that most terrestrial habitats in the AoI are modified, comprising intensive agricultural crops. The West Morava river is moderately impacted by organic pollution and some heavy metals and the riverine and terrestrial habitats are under pressure from agricultural, commercial, and residential activities. Nevertheless, there are also areas of Natural Habitat including the West Morava river and associated alder, birch, poplar, and willow riparian woodland. In addition, there are pockets of thermophile deciduous oak woodland, permanent mesotrophic pastures and aftermath-grazed meadows, and smaller artificial water bodies/ponds supporting a wide variety of native plant and bird species, described in detail in the ESIA. In the wider Ecologically Appropriate Area of Analysis (EAAA) defined as part of the CHA, encompassing but extending beyond the AoI, there are five Key Biodiversity Areas (KBA), a special nature reserve (SNR), as well as some areas of karst limestone.  

The CHA determined that two natural habitats in the EAAA support or are highly likely to support populations of Critical Habitat (CH) qualifying species under criteria 1 (critically endangered (CR) and/or endangered (EN) species), and 2 (endemic and/or restricted-range species), and therefore are considered to be Natural Critical Habitat. These include the karst limestone areas; the permanent mesotrophic pastures. The karst areas support Xerocampylaea zelebori, a restricted range karst snail classified by IUCN as least concern (LC). The area may also maintain populations of three other restricted range CH qualifying gastropods, Chilostoma kollari (LC), Macedonica frauenfeldi (LC) and the Near Threatened Agardhiella serbica (NT). The permanent mesotrophic pastures overlap with the expected area of occupancy of the restricted range Domogled Meadow Bush-cricket Broughtonia domogledi (NT). The presence of the freshwater snail the Striped Nerite Theodoxus transversalis (EN) in the West Morava river was assessed through Environmental DNA (eDNA) samples and results did not confirm its presence, hence the river is assessed as Natural Habitat. Although not Critical Habitat qualifying species, the Endangered Thick Shelled River Mussel Unio crassus (EN) is present and considered a species of concern. There is no evidence to suggest that the study area supports significant numbers of  migratory and/or congregatory species (CH criterion 3,) highly threatened ecosystems (CH criterion 4) or significant evolutionary process (CH criterion 5), and Project infrastructure (including temporary facilities) is not sited within or likely to impact legally protected areas or internationally recognized areas of high biodiversity value. 

Protection and Conservation of Biodiversity: Construction and operational impacts to Natural and Critical terrestrial habitat include direct loss of habitat, habitat degradation due to noise, vibration and dust, change in flooding regimes, groundwater regimes, and habitat fragmentation. Impacts to aquatic habitats include direct loss of habitat (including natural riverbanks), impacts to habitat integrity, hydrological changes due to the river regulation works and changes to water quality during construction. Significant indirect impacts are not anticipated.  

The direct Project footprint was assessed in the updated BIA by overlaying the Project footprint with the habitat map. Approximately 72% of land in the area immediately under and around the Project infrastructure and temporary facilities is Modified Habitat. However, the Project is estimated to impact a total of 962 hectares (ha) of terrestrial Natural and Critical Habitat, equivalent to 593 quality hectares (QH5). The largest impacts are to riparian and gallery woodland amounting to 337.5 QH. 234.1 QH of thermophilous deciduous woodland, 16 QH of permanent mesotrophic pastures and 5.7 QH of ponds will also be impacted. Project impacts to these terrestrial Natural Habitat features are unlikely to be significant at the landscape level and quarry sites do not impact karst limestone areas.   

The river regulation work is estimated to directly impact approximately 30 km of river. The BIA assessed this to be equivalent to 9.6 Quality Km (QKm) of Natural Habitat in Sectors 1 and 2, and 16.3 QKm of Natural Habitat in Sector 3.   There will be changes to habitat, downstream hydrology, and functionality of the river. As per ESAP #3, once the river regulation design is updated and the residual risks identified by the 2D hydrological and hydraulic model, the BIA, BMP, as well as other management plans will be updated.   

Mitigation measures to further avoid, minimize and restore these habitat types and associated species are presented in the CESMMP and BMP per ESAP #4 and 17 and are designed to achieve a “no net loss of Natural Habitat and net gain of Critical Habitat”. Measures include timing construction activities to avoid sensitive breeding and wintering periods for key biodiversity features; pre-construction surveys for target fauna (such as the otter Lutra lutra (NT) and Domogled Meadow Bush-cricket by a competent ecologist; implementing pollution control measures; allowing artificial wetlands to form from borrow pits; creating fauna crossing points (i.e., culverts) along the Morava motorway with a ledge so species such as otters and reptiles can cross alongside the river even at times of high flow and rehabilitation and restoration of impacted areas. 

The new river sections will be reinstated to include riverbeds with specific bed material (coarse gravel) that is characteristic of the natural environment, and vegetated banks that resemble the features of the natural reaches of river to allow native aquatic plants to establish and colonize to serve as suitable spawning and sheltering areas for fish species. The banks of the regulation channel will be re-vegetated with native species associated with riparian habitat. The cut-off meanders will create naturalized pond habitat. During construction water flow in the river will not be fully blocked, and continuity of the flow will be maintained as much as possible. During river regulation or diversion works, fish species stranded in the natural small ponds (puddle) will be transported to the riverbed by a competent biologist (ESAP #6). Translocation of the Thick-shelled river mussel is not recommended due to the low feasibility of success.  

The mitigation hierarchy was applied to the Project to avoid, and where not possible to avoid, minimize impact on natural and critical habitats. Where impacts could not be avoided, measures were put in place to restore affected habitats. Biodiversity offsets will also be necessary to compensate for residual impacts to Natural and Critical Habitat to achieve no net loss where feasible and where appropriate net gain. An Offset Strategy has been developed following a virtual workshop organized by the biodiversity consultant, with BEJV, CoS, RoS, JCWI, government, academic and NGO stakeholders on November 30 and December 1, 2020. It provides a framework under which the offsets program will be developed and financed. The Strategy outlines offset options, and presents a high-level feasibility assessment of the options, together with key risks to offset success and enabling mechanisms for success. The Strategy will be followed by a planning phase with key stakeholders to better understand the feasibility of the options and to develop the Offset Management Plan including a detailed budget and financing for the offset program (ESAP #17).  

The Project will also design and implement an appropriate Rehabilitation Plan and Biodiversity Monitoring and Evaluation Program (BMEP) to monitor and adaptively manage mitigation and offset actions using the State-Pressure-Response framework (ESAP #4 and 5) 

Protected Areas: Five KBAs and a SNR overlap with or are located within the wider EAAA. The KBAs include the Valjevske mountains (‘Valjevske planine’), Ovcar-Kablar gorge (‘Ovcarsko-Kablarska klisura’), Kopaonik, Gornje Pomoravlje and Akumulacija Gruza. None of the KBA sites qualify for CH and do not overlap with the Project infrastructure or temporary facilities. Gornje Pomoravlje KBA is downstream of the Project on the western end of the motorway. Based on available information and expert opinion, changes are unlikely to affect the KBA on the Velika Morava river as it is c. 13.6 km downstream of the final instream river works in Sector 1 and the effects of river regulation are expected to dissipate before reaching the KBA. The Osredak SNR covers a section of the West Morava river as well as adjacent wetland habitat. The nearest river regulation is the reconstruction of a dike approximately 5 km upstream. There will be one borrow area located upstream of the SNR (approx. 1 km) and one borrow area located downstream, (approx. 0.5 km). Significant impacts to the SNR are unlikely, but any increases in sediment load in the river as a result of erosion from the borrow area and associated stockpiles may result in localized degradation of water quality. Measures to minimize such effects are outlined in the BMP.  

Invasive species: An Invasive Species Management Plan will be developed to minimize the spread of invasive species. Measures outlined in the BMP and CESMMP include vehicle and equipment washing; the prevention of employees bringing in live animals or plants into the construction site; prohibition of planting of alien species in revegetated areas; and avoiding the transfer sand or gravel from Sector 1 and 2 riverine areas to other sites due to the presence of Corbicula fluminea, an invasive competitor of the Thick Shelled River Mussell (ESAP #4) 

Ecosystem Services: The area supports a range of provisioning, regulating and cultural ecosystem services. Priority services are those that beneficiaries depend on and are not able to access alternatives to if they are impacted. Priority services in the area were determined through a desktop review and social surveys as part of the supplemental Ecosystem Services Assessment (2021). These services include: (i) freshwater obtained from the river or from groundwater in connectivity with the river; (ii) flood protection; (iii) fishing for protein and cultural enjoyment; (iv) heating from firewood; and (v) food, good nutrition or income from crop production. Impacts to ecosystem services include change in ecosystem services supply, use or benefit. Mitigation measures identified in the supplemental Ecosystem Services Assessment will be incorporated in the Project’s relevant management plans and procedures ESAP #18. 

Supply Chains: Material procured from quarries and suppliers that are not directly owned by the CoS or BEJV have been evaluated to assess whether they impact NH and CH (for further information see PS 3 on aggregates). Extension of existing quarries as a result of the Project’s need for materials will take into account measures outlined in the BMP. 

PS8: Cultural Heritage 

Protection of Cultural Heritage in Project Design and Execution: The Morava river valley was part of the inner Pannonian Sea in the Neogene. The valley was once a deep bay, which makes it interesting today in terms of fossil remains and geological features. A total of 244 cultural heritage sites (60 for Sector 1, 150 for Sector 2, and 34 for Sector 3) were mapped in the ESIA of which, 59 cultural heritage sites are located in within the Project’s AoI (500 m buffer either side of the centerline of the motorway). Project affected areas are differentiated as follows in the AoI: (i) Project footprint: related to the motorway, river regulation works, temporary facilities and construction activities; (ii) potential direct impacts: 50 m buffer from the motorway route river regulation works, temporary facilities and construction activities; and (iii) potential indirect impacts: 500 m buffer either side of the motorway. 

Cultural Heritage sites may be directly impacted as a result of construction activities (top-soil stripping, geological and geotechnical studies, material storage and excavation) or indirectly impacted by altering the surrounding environment (building a road into a previously inaccessible area that may affect the sustainability of tangible Cultural Heritage and indirect temporary or permanent impacts related to noise and visual impacts). The Project’s final route was defined taking into account the presence of Cultural Heritage sites and the area of the river so to not directly impact these areas. 

All the identified Cultural Heritage sites in the AoI are tangible features, either of archeological value (49 sites), cultural heritage buildings (6), and registered immovable cultural sites of non-replicable6 form  (2)  and monumental trees (2) of cultural importance to local communities. Out of the 59 cultural heritage sites, 15 archaeological sites fall within the 50m buffer and may be potentially directly affected by construction impacts.  

A supplementary Cultural Heritage Impact Assessment has been undertaken to assess cultural heritage impacts and includes mitigation, management and monitoring measures that will be incorporated in a Cultural Heritage Management Plan for construction and operations (ESAP #19). BEJV will also develop and implement a chance find procedure and Corridors of Serbia will appoint a dedicated archeological supervisor to monitor construction activities in line with National requirements (ESAP #19). 

A Broad Community Support determination is not required for the Project.  

The documentation listed below is available electronically as PDF attachments to this ESRS at www.miga.org.   

• Morava Corridor Resettlement Action Plan – Sector 1, prepared by ARUP, December 2020 

• Morava Corridor  Resettlement Action Plan – Sector 2, prepared by ARUP,  November 2021 

• Morava Corridor Resettlement Action Plan – Sector 3, prepared by ARUP, April 2021 

• Critical Habitat Assessment, Morava Corridor Motorway Project, Serbia, prepared by The Biodiversity Consultancy (TBC), February 2021 

• Updated Biodiversity Impact Assessment, Morava Corridor Motorway Project, Serbia, prepared by The Biodiversity Consultancy, February 2021 

• Biodiversity Management Plan; prepared by The Biodiversity Consultancy, December 2020 

• Biodiversity Offset Strategy, prepared by The Biodiversity Consultancy, February 2021 

• Morava Corridor Motorway Project, Serbia: Supplementary Lender Information Package:  
• Alternative Analysis, prepared by RINA Consultancy, May 2021 
• Traffic Impact Assessment, prepared by RINA Consultancy, May 2021 
• Ecosystem Services Assessment, prepared by RINA Consultancy, May 2021 
• Cultural Heritage Assessment, prepared by RINA Consultancy, May 2021 
• Informed Consultation and Participation for River Regulation prepared by RINA Consultancy, April 2021 
• Informed Consultation and Participation for Operational Noise Impacts, prepared by RINA Consultancy, April 2021 

• Morava Corridor Motorway Project Environmental and Social Impact Assessment (ESIA) prepared by 2U1K, November 2020; 

• Morava Corridor Motorway Project Stakeholder Engagement Plan prepared by 2U1K, October 2020 [disclosed together with the ESIA - Appendix 3].  

• Resettlement and Livelihood Restoration Framework for Morava Corridor Motorway Project, prepared by 2U1K, January 2020 

For additional information on the Project, please contact: 

• LEONID VUKOVIĆ Project Manager, Morava Corridor Motorway Project  
  Koridori Srbije d.o.o 

Address: Kralja Petra 21, Beograd, 11000 

E-mail: office@koridorisrbije.rs 

Phone: +381 11 3344 148; +381 11 3344 174 

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MIGA supports its clients (as defined in MIGA Policy on Environmental and Social Sustainability) in addressing environmental and social issues arising from their business activities by requiring them to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities. 

In addition, Affected Communities have unrestricted access to the Compliance Advisor/Ombudsman (CAO), the independent accountability mechanism for MIGA. The CAO is mandated to address complaints from people affected by MIGA-guaranteed business activities in a manner that is fair, objective, and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of MIGA. 

Independent of MIGA management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of MIGA’s environmental and social performance through its compliance arm. 

Complaints may relate to any aspect of MIGA-guaranteed business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of a MIGA-guaranteed business activity. Complaints can be submitted to the CAO in writing to the address below: 

Compliance Advisor/Ombudsman 
International Finance Corporation 
2121 Pennsylvania Avenue NW 
Room F11K-232 
Washington, DC 20433 USA 
Tel: 1 202 458 1973 
Fax: 1 202 522 7400 
E-mail: cao-compliance@ifc.org