IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising updated technical and environmental information submitted by PICT, as well as recent site visits conducted by IFC staff. The following potential environment, health and safety impacts of the projects were analyzed. - Environmental, health and safety management; - Maintenance dredging and dredge spoil disposal; - Stormwater management; - Oil/hazardous materials storage and handling; - Liquid, solid and hazardous waste disposal (including waste oils and other maintenance wastes); - Ship support operations (such as sewage disposal, bilge waste effluent disposal, and fueling services); - Handling and storage of dangerous cargoes; - Emergency response planning and preparedness; and - Employee health and safety (including training).

PICT continues to demonstrate that its activities substantially comply with applicable Pakistan laws and regulations, and World Bank requirements. The company also continues to make progress on implementing the specific measures agreed with IFC in the first investment and still applicable. The details about how PICT is addressing these potential impacts is summarized in the paragraphs that follow. - Environmental, Health and Safety Management PICT has a full-time safety officer and an environmental coordinator with responsibility for all safety and environmental matters at the terminal. The role of the Safety and Environment Officer is clearly defined within the Terminal organizational structure, including a detailed written job description. Consistent with its operating agreement with the Port of Karachi (KPT), PICT also will obtain ISO 9000 certification of its quality management system within one year of the agreement's first completion date. PICT's quality management system framework will integrate all safety and environmental aspects of the operations. - Maintenance Dredging and Dredge Spoil DisposalOngoing maintenance dredging of the approach channel and harbor is the responsibility of KPT, who owns and operates a fleet of dredgers and hopper barges for this purpose. KPT disposes dredge spoil at two designated marine sites in the open sea away from the channel. - Stormwater Management Stormwater is collected separately from the various operating areas of the terminal with uncontaminated runoff directed to the harbor through four outfalls. Leaking containers are segregated and stored on a platform in a designated area within the container yard provided with containment walls and a collection tank. Material collected in this tank is disposed through an approved, licensed waste disposal contractor. - Oil/Hazardous Materials Storage and Handling Because of the limited day-to-day maintenance activities conducted at the terminal, only incidental amounts of hazardous materials – paints, solvents, and petroleum lubricants – are stored and handled in the workshop areas. Operated by KPT, truck fueling facilities comprise two underground tanks located within a larger area surrounded by containment walls. There are no ship fueling facilities at the terminal. The fuel tank for the terminal standby power generator has appropriate containment features to prevent spills from being released to the environment. - Liquid, Solid and Hazardous Waste Disposal Sanitary sewage generated by employees is currently partially treated in septic tanks serving various buildings and areas of the terminal prior to eventual discharge to the harbor. Going forward and as a replacement to this arrangement, PICT will install a new sewage pre-treatment facility to treat these wastewaters to levels consistent with Pakistan laws and regulations prior to discharge to the municipal sewerage system. Sludge generated by this new facility will periodically be removed by a licensed waste removal contractor. Oily wastewaters generated from the equipment washing area in the maintenance workshop will be treated in a dedicated oil/water separator. The small amounts of solid and hazardous wastes generated by the workshop along with any oils recovered by the oil/water separator will be collected by a licensed contractor and properly disposed at approved government-operated landfills. - Ship Support Operations KPT controls and has responsibility for vessel support operations involving bilge and other ship-generated wastewaters and wastes management, and relies on licensed contractors to provide these services to vessels. The ship's agent arranges for supply of provisions, potable water, fuel with responsible third parties while berthed at the terminal. KPT does not permit vessels to discharge oily bilges, sludges, and water containing oily mixtures into the harbor, and conducts inspections regularly to ensure that vessel operators comply with all laws and regulations. - Handling and Storage of Dangerous Cargoes PICT stores containers in accordance with IMO conventions to prevent potentially dangerous combinations of goods coming into contact with one another. Customer-identified IMO Dangerous and Hazardous (D&H) containers are transferred to and stored in KPT's designated D&H Container sheds (located at the east wharf and the west wharf) separated from PICT's container storage yard. Each having capacities of 2000 tons, KPT's D&H sheds have separate areas allocated for various categories of dangerous cargo, including appropriately ventilated areas for cargo with the potential to emit vapors. In the event any container is found leaking, trained KPT staff relocate it to a designated area where leaky cargo is removed and properly disposed according to applicable environmental requirements. - Emergency Preparedness and Response KPT provides port-wide fire-fighting and emergency response services consistent with international maritime conventions (MARPOL 73/78) through its Marine Pollution Control Department (MPCD). Services include harbor oil spill response and clean-up, harbor water quality monitoring, vessel surveillance and inspection, and fire fighting. The equipment which MPCD employs includes specially provisioned ships, skimmers, and oil containment booms. PICT coordinates with KPT for responding to incidents that occur on the terminal property. PICT has its own emergency plans and procedures and the necessary equipment for preventing and combating oil and chemical spills and fires and major accidents during terminal operation, including coordination with KPT fire and spill response brigades. PICT's emergency response program includes appropriate personnel training in emergency response. - Employee Health and Safety PICT is developing an Occupational Safety and Health (OH&S) program that includes an OH&S management system to enable the Company to ensure the health and safety of all employees, including pre-employment and periodic medical evaluations, provision of Personal Protective Equipment (PPE), and regular training in hazards, safe work procedures, and emergency response activities. Policies and supporting documentation (i.e., a health & safety manual) have been developed, and PICT is in the process of implementing detailed procedures and the specifics of how performance is to be measured and monitored.

This ERS contains the full environmental and social documentation prepared for the project.

Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation of the agreed mitigation measures.

IFC will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering: - the status of implementation of any measures described above and - ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programs. Periodic site supervision visits will also be conducted.