ENVIRONMENTAL MANAGEMENT PLAN FORMAT

ENVIRONMENTAL MANAGEMENT PLAN: MOJKOVAC SUBSTATIONANDTRANSMISSION LINE CONNECTOR IMPROVEMENT(WB-T-2)

Project Description

The project will consist of reinforcement of the existing connector line from the Mojkovac substation to the main transmission line by adding another line along the same route. The connector line will remain at 220 kV and will be about 2.5 km in length. An additional transformer bay will also be constructed adjacent to the site of the existing Mojkovac substation and will utilize about 2000-3000 m2 of land.

Mojkovac substation is situated on the site of a lead and zinc mine and ore processing facility that was abandoned about twenty years ago. The adjacent land site contains several old empty buildings that have been in disuse since the time the mining operation had ceased. The entire facility is about one kilometer from downtown Mojkovac, and the mine tailings pond that has caused some concern of water pollution to local residents is about 0.5 kilometers from the substation site. All local drinking water is derived from surface waters flowing from the nearby mountains. The connector line route is sparsely populated and very hilly with limited farming activities. The Site consists mostly of meadowland and some trees.

Some of the abandoned buildings will be demolished to provide space for the additional transformer bay.

A. MITIGATION PLAN

PhaseIssueMitigatingMeasureCost of Mitigation(If Substantial)Responsibility*Start DateEnd Date

ConstructionWorker health from dust inhalation of soils possibly contaminated with zinc or lead from mining activities Workers will be required to wear filter masks and eye protection

Dusty areas (demolition site, transformer bay site) will be sprayed with water, particularly during hot, windy weather Minor

MinorConstruction contractorBuilding demolition activities beginTransformer bay construction is complete

NoiseWork will be conducted weekdays from 8:00 AM-6:00 PMIf additional times are needed, local residents will be informed at least one week in advanceMinorConstruction contractorConstruction activities at substation and connection line beginConstruction activities at substation and connection line end

Machinery engine emissionsCombustion engine vehicles must have official valid emission certificationsMinorConstruction contractorConstruction activities at substation and connection line beginConstruction activities at substation and connection line end

Building demolition waste materialsRemoved by truck (covered and or watered) to local official municipal disposal siteMinorConstruction contractorBuilding demolition activities beginBuilding demolition activities end and site is cleared

Right-of-way (ROW) land clearance Clearance performed by manual and/or mechanical means-no pesticide use

Wood will be sold locally, vegetative scrap trucked to local official municipal disposal site Minor

MinorConstruction contractorROW clearance beginsROW clearance ends

ROW erosion controlSteep slopes will have minimal clearance of vegetation and replanted as a priorityMinorConstruction contractorROW clearance beginsROW clearance ends

Polychlorinated biphenyls (PCBs)Any electric equipment purchased for the project are prohibited from containing PCBsMinorConstruction contractorPrior to purchase of electrical equipmentAfter last piece of electrical equipment is purchased

Access road constructionExisting roads will be usedMinorConstruction contractorConstruction activities at connection line beginConstruction activities at connection line end

Disruption of local traffic patternsAlternative traffic routes will be designated, detailed traffic signs located strategically to avoid confusionMinorConstruction contractorConstruction activities at substation and connection line beginConstruction activities at substation and connection line end

Operation

Electric and magnetic field strength at ground levelTower heights will be designed and built to International Electric Commission (IEC) standards to assure ground level electric and magnetic fields meet standards:E 5kV/m

B 100TMinorConstruction contractorDuring tower design

After tower is constructed

*Items indicated to be the responsibility of the contractor shall be specified in the bid documents

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B. MONITORING PLANPhaseWhat parameter is to be monitored?Whereis the parameter to be monitored?Howis the parameter to be monitored/ type of monitoring equipment?Whenis the parameter to be monitored-frequency of measurement or continuous?Monitoring CostWhat is the cost of equipment or contractor charges to perform monitoringResponsibilityStart DateEnd Date

Construction

Worker health

Dust levelsAt construction siteVisual: Worker wearing equipment

Dust visibleWeekly: random times

Weekly, more frequently during dry, windy weatherMinor

MinorConstruction Contractor

Construction ContractorBuilding demolition activities beginTransformer bay construction is complete

NoiseAt construction sitedB meterWeekly or if there are local complaintsMinorConstruction ContractorConstruction activities at substation and connection line beginConstruction activities at substation and connection line end

Machinery engine emissionsAt construction siteVisual: Examine engine exhaust certificationEquipment first comes to project site MinorConstruction ContractorConstruction activities at substation and connection line beginConstruction activities at substation and connection line end

Building demolition waste materials transport and disposalAt construction site

At disposal siteVisual: Trucks covered or watered

Material properly depositedWeekly: random times

WeeklyMinor

MinorConstruction Contractor

Construction ContractorBuilding demolition activities beginTransformer bay construction is complete

Right-of-way (ROW) land clearanceROWVisual: Manual or Mechanical methods used

Wood properly disposedWeekly

WeeklyMinor

MinorConstruction Contractor

Construction ContractorROW clearance begins

ROW clearance beginsROW clearance ends

ROW clearance begins

ROW erosion controlROW (particularly at steep slopes)Visual:Proper procedures followedMonthly, and during or after heavy rainfallMinor

Construction Contractor

ROW clearance begins

ROW clearance ends

PCBsAt delivery siteVisual:Review equipment invoice Before equipment delivery is acceptedMinorConstruction ContractorPrior to accepting delivery of electrical equipmentAfter last piece of electrical equipment is delivered

Access road constructionEquipment and material delivery routesVisual: Existing roads usedWeeklyMinorConstruction ContractorConstruction activities at connection line beginConstruction activities at connection line end

Disruption of local traffic patternsRoads at or near construction siteVisual:Alternate routes clearly indicatedMonthlyMinorConstruction contractorConstruction activities at substation and connection line beginConstruction activities at substation and connection line end

Operate

Electric and magnetic field strength at ground levelLowest cable point under connector line, and edge of ROWElectrometerOnceMinorConstruction contractorWhen line is energizedWhen line is energized

C. INSTITUTIONAL ARRANGEMENTS

The Project will be implemented, in each of its phases, in compliance with applicable Montenegrin Environmental Low and Construction Low. At the same time, EPCG accepts the obligation to follow rules of World Bank and arrange conduction of EMP in following way:

Construction contractor will be obliged to collect environmental data, and to inform EPCG about data relevant for conduction of EMP. The representative of EPCG from the Transmission Functional Entity who is in charge of EMP will be in the role of supervisor at site, to review and analyze environmental data. There is a quality system office in charge of system quality and environmental safeguarding which will prepare reports monthly or more frequently if required. If problems emerge, this office recommends measures for solving the problem. The Manager of the Transmission Functional Entity and the Head of PMU shall receive monthly reports and decide about implementing recommendations (such as with-holding of payments to contractor, repeated tests, dismissing contractor, etc.).

D. CONSULTATION WITH LOCAL NGOs AND PROJECT-AFFECTED GROUPS

Following the World Banks review and approval of the proposed EMP (Enviromental Management Plan for Mojkovac Substation and Transmission Line Connector Improvement) on February 14 and 27, 2006, the Electric Power Company of Montenegro has undertaken a series of activities in order to promote the concepts of transparency and providing the participation of citizens in the project implementation process, particularly of the population affected. A notice inviting public to consultations on the EMP was prepared and circulated through various media in time sufficient to provide public insight into and review of the EMP in advance of public consultation meeting. The notice also announced availability of the corresponding Land Acquisition Policy Framework (LAPF) paper, and opportunity of the public to review it together with the EMP.

The notice was also sent by fax directly to two NGOs who have been active in the field of environmental protection in the area of Mojkovac. The public consultation notice, as published and in translation, is given in Attachments 1 and 2. The list of various media where the notice appeared, as well as availability of the EMP in hard copy and electronically, is presented in Attachment 3.

Public consultation on EMP took place on March 16, 2006 in the premises of the Electricity Distribution Unit of Mojkovac, from 12:20 to 14:30 hours. In addition to the participants who signed the Participation List (Attachment 4) the public consultation session was attended by representatives of press and electronic media and the head of local government, the Mayor of Mojkovac.

Introductory presentation of the EMP was given by Messrs. Branislav Medojevic, Director of ED Mojkovac, Dusan Vukasovic, Chief Engineer of the Project, the EPCG Transmission Functional Entity and Ph.D. Veselin Ilic, and was followed by a discussion as recorded in the Minutes of the Public Consultation (Atachment 5).

The public consultation session and the expectations from the Project were reported in the press, daily Pobjeda and Vijesti (Attachment 6) and broadcasted on the government TV channel 1 RTCG 1 in two evening news programmes on Friday, March 17 and morning news on March 18, 2006.

The above EMP, Enviromental Management Plan for Mojkovac Substation and Transmission Line Connector Improvement (WB-T-2), together with all its attachments is officially disclosed to public, following the order no. 10-00-4739 dated March 31, 2006 passed by Executive Director of EPCG, at the EPCG web site www.epcg.cg.yu as of March 31, 2006.

Attachment 1

Attachment 2(Translation)

Electric Power Company of Montenegro, a Joint Stock Company, NikiFunctional Entity TRANSMISSIONPODGORICABulevar Svetog Petra Cetinjskog 18

PUBLIC CONSULTATION NOTICE(WB-T-2)

The Electric Power Company of Montenegro hereby announces that public consultation will take place on March 16, 2006 at 12:00 in the hall of ED Mojkovac with the following topic for discussion:

PROPOSAL OF ENVIRONMENTAL MANAGEMENT PLAN FOR IMPLEMENTATION OF 220/110/35 kV MOJKOVAC SUBSTATION EXTENSION AND ADDITIONAL 220 kV OHL ERECTION PROJECT

The discussion is open for all interested persons.

The PROPOSAL of this PLAN, together with the LAND ACQUISITION POLICY FRAMEWORK related to the implementation of the above Project, are available as hard copies in Mojkovac Town Hall, in Town Planning and Civil Engineering Office and in ED Mojkovac, in Technical Service, as well as on EPCG site www.epcg.cg.yu, Press Reports.

All interested persons and legal entities, and any other organization and institution can submit their possible comments, remarks, observations and suggestions to the following address: Elektroprivreda Crne Gore, A.D. FC Prenos, Podgorica, Bul. Sv. Petra Cetinjskog 18, Podgorica (n/r Duan Vukasovi, dipl.el.ing) or email vukas@cg.yu by March 15, 2006.

Attachment 3

EMP Proposal of Environmental Management Plan for Implementation of 220/110/35 kV Mojkovac Substation Extension and Additional 220 kV OHL Erection Project (WB-T-2)

0. Public Consultation Notice:0. EPCG website on March 6, 20060. Daily Newspaper Pobjeda on March 4 and 11, 2006 0. Notice board of ED Mojkovac on March 6, 20060. Notice board of the Town Planning and Civil Engineering Office of the Mojkovac Municipality, on March 6, 20060. Local Radio Mojkovac, in three news programmes, on March 7 and 8 and March 14 and 15, 20060. Direct invitation sent by fax to NGO Dzambas Mojkovac, on March 10, 20060. Direct invitation sent by fax to NGO Ekoturs Mojkovac, on March 10, 2006

0. Proposal of EMP available as hard copy:

1. In the local Town Planning and Civil Engineering Office of the Mojkovac Municipality, from March 6 to the date of public consultation on March 16, 20061. In the premises of ED Mojkovac, from March 6 to the date of public consultation on March 16, 2006

0. Proposal of EMP available electronically:

1. At the EPCG web site www.epcg.cg.yu, section of Press Communications, as of March 6, 2006 until the final EMP will be posted on-line

Attachment 4

Attachment 5

(Translation)

M I N U T E S

of the Public Consultation held at ED Mojkovac offices in Mojkovacon March 16, 2006 at 12.20 AM

The topic of the Consultation was Environmental Management Plan proposal for implementation of 220/110/35 kV Mojkovac SS Extension and 220 kV Transmission Line Construction Project.

Attendees: Other attendees:

Project-holder Representatives 1. Mayor of Mojkovac 1. Duan Vukasovi2. Radio Mojkovac Representatives2. Vera urovi3. Vijesti reporters3. Dr.Veselin Ili4. NGO Planinar Representatives 5. Citizens

Mr. Branislav Medojevi, manager of ED Mojkovac, opened the discussion and greeted those present, and afterwards Mr. Duan Vukasovi informed everyone about the objective and importance of the project 220/110/35 kV Mojkovac SS Extension and 220 kV Transmission Line Construction. After Mr. Vukasovi discussion, Dr. Veselin Ili advised those present on the proposal of Environmental Management Plan for implementation of 220/110/35 kV Mojkovac SS Extension and 220 kV Transmission Line Construction Project.

Following the introductory part the discussion was open, and citizens and representatives of NGO mountain climbing club "Dambas" Mojkovac took part in it. Mr. Borislav Radovi asked whether elaboration of environmental evaluation was prepared? and suggested to propose to Mojkovac Community to harmonize this project with Detailed urban plans and comply it with the Law on Construction Land and Law on Planning. Mr. Stevan Grdini representative of NGO "Planinar" asked the following: What are the line height and length? Would this be the same line or would there be another one designed? Mr. Grdini said that to citizens of Mojkovac suited to have regular electricity supply, but that they were also concerned to protect the woods, so he suggested that the OHL design should take care to cut as less trees as possible in. Mr. Grdini also warned about and called attention to substantial environmental problem regarding tailings pond 30 m, that is located near SS and other two tailings ponds 18 m and 12 m. His suggestion was to empty these ponds before the project start into existing barren land, because their waste can not be disposed of at the disposal site.

Dr. Veselin Ili, the representative of citizens, explained the situation with the existing SS and said that it was necessary to implement this Project. He thinks that it would be more sensible to add one more line route. Dr. Ili said that OHL had no harmful impact on the environment, and emphasized the problem of tailing pond 30 m, that was located on the former Mine site, where he used to work, and that it should be determined how much dirt there was? and where should it be disposed? According to him the only solution is the existing barren land that is submerged, because the waste should not be disposed of on surface excavation site.

Mr. Branislav Medojevi, president of NGO mountain climbing club "Dambas" Mojkovac, thinks that importance of the project for Mojkovac and the entire northern region should not be repeated. No one made the environment more beautiful by putting the poles, and we should take care of number of poles, but if we were aware of our gain and our loss, he would support the project. Concerning harmful effects on the environment, he thinks there is no major impact and he would always decide to support to the project.

Mr. Mini Milisav, citizen representative, asked whether anyone thought to apply underground solution for OHL? There is a plan to build a cable railway on that site, and the line would obstruct it.

Mr. Duan Vukasovi replied to the questions asked and said that there was no consideration of this issue because the price was considerably higher, but that this issue, together with all remarks from this discussion, would be considered while designing the OHL.

The Public Consultation ended at 2.30 PM.

Duan Vukasovi, Assistant Director of Electrical Transmission

Vera urovi, Chief of Legal, HR and General Affairs Department of FE Transmission

Attachment 6