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 since a limited number of specific environmental and social impacts may result; these impacts can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental/social information submitted by the project sponsor. The following potential environment, health and safety and social impacts of the projects were analyzed. - Millicom Laos environmental and social policies and procedures; - environmental management and performance of existing network; - site selection, land acquisition procedures and construction impacts of proposed expansion of network (towers, switching center and base stations); - development of previously undisturbed land; - impacts on environmentally or culturally sensitive areas (national parks, forests and other cultural heritage features); - fuels/hazardous materials use; - waste management; - employee health and safety; - training and emergency response.

The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. - Environmental Management. Millicom Lao has an environmental policy in place, and the various procedural elements are described in the following paragraphs. - Performance of existing network. The company is in the early stage of network deployment, and its coverage area is currently limited only to major cities. This project is network expansion to increase coverage area. The project involves the construction of towers & shelters, and installation of cellular, microwave, and satellite receiver systems. Some of the towers are built on open land sites and some are on top of existing building roof-tops. If there are existing towers available to be shared, tower sharing will be preferred as oppose to building new ones. - Site selection and Acquisition. Technical Issues such as location of the coverage area, transmission feasibility, and power supply availability are all considered as part of site selection process. In tower sharing situations, engineering data of the tower such as height, maximum support weight, and others factors are taken into considerations. With regards to environmental consideration, the company will try to share existing tower/infrastructure whenever possible in order to utilize resources efficiently and to minimize the impact on land use. For cultural and historical consideration, the company avoids building towers at or nearby culturally sensitive areas and historical locations. Also, the company strictly follows local City Planning guidelines throughout site acquisition process. To avoid adverse impacts on communities, the company typically approaches and consults with provincial and district authorities during site selection, and most of the land that the company leases to build towers are the private lands. During the initial site survey, relevant Provincial Authorities and District Authorities are approached with introduction letters by enclosing a copy of Government approved network expansion document. Upon second trip for site location refinement, Provincial and District Authorities are approached to see if they have any available land in the specifically identified area. In most cases, government land is cheaper than private land, but it normally takes longer to negotiate and receive permits. Thus, a site is not selected based solely on price. Instead, the best sites for coverage purposes are chosen. When selecting a site, the following criteria are identified: - Distance to three phase power supply - Security issues. - An area of land suitable to erect the type of tower to get the height needed by engineering - 40 meters x 40 meters for a 65 meter guyed mast - 4 meters x 7 meters for a 35 meter self support (minimum) - Locations of major target areas (markets, residential areas, recreational areas, big secondary schools, etc) - Flooding & other natural catastrophe concerns Near the end of site selection process, the village chief is approached with the letter by enclosing a copy of the Government approved network expansion document. If private land is selected, the land owner is approached. Sometimes, it requires a lot of effort to locate the land owner. If they are not living on or near the site, the Village chief or Provincial or District authorities are approached to help find the owner of the land. Once the owner of a possible site is identified, he or she will be given blank copies of the lease agreement to read and study. The site owner will also be shown different types of installations. At this stage, the company also follow up on UXO issues if relevant and any sensitive cultural concern (such as old cemetery). All contracts are for a minimum of ten years with the option to extend for periods of five years. For contracts with private land owners, Millicom Lao will be responsible for paying the tax and will deduct the tax from the amount negotiated on the contract to ensure tax was paid in correct amount. For contracts with government departments, Millicom Lao will pay the full amount of the contract and the Leaser will be responsible for paying the tax. In Vientiane (Capital city), approval is required from the city planning authority for the erection of all towers. No approval is needed for using an existing tower. In the provinces, district approval and maybe provincial approval are required. The required documents for planning approval are: - A copy of Millicom Lao business license - A copy of the government approval for network - A layout drawing of the site showing the location of tower and shelter (in Lao) - An elevation drawing showing the type of tower (in Lao) - A letter of guarantee for a Lao Engineering company - A registered Site Lease Contract with Land little The company’s approach to land acquisition and use of sites is described in the previous paragraphs. - Hazardous material and wastes. The only possible hazardous waste stream relating to this project would be the batteries. Currently, as the company is a brand new network, the company has not had many batteries disposed. However, the company plans to have a maintenance contract with a supplier to check on battery status and replacement. This contract will include provisions for safe disposal. The level of PCB content in electrical transformers is “Not Detectable”. Effective from September 2004, Millicom Lao will add CFC-free equipment requirement for our Purchasing/Procurement procedures. - Waste Management. There are no liquid waste streams associated with this project. Solid wastes are mainly cartons and packaging materials for equipment. These are collected by the local people to reuse them for their own purposes. If these packaging materials are not collected by the local people, they are taken away by the contractor to dispose or recycle. - Employee Health and Safety. The office building is equipped with a split type air-conditioning system to ensure that employees are properly protected from exposures contaminated air and high noise levels. The company requires all employees to have medical check up prior to finalization of the recruitment process, and there is an annual medical check up program for all employees. Currently, there is no formal health and safety training, but the company plans to conduct a general safety program for all employees. This safety training program will be monitored by HR and the Administrative manager. Safety instructions and personal protective equipment for specific engineering tasks are available for the employees who perform them. - Emergency Response. Fire extinguishers are installed in both floors of the office and first aid medical care is provided at the office. In case of emergency, the administrative department is responsible for informing and coordinating with employees and other relevant parties. Emergency response contact numbers are prepared. In case of serious injuries, the employees will be taken to Nong-kai in Thailand where there are more advanced medical facilities and the expenses are covered by our health insurance. Emergency response procedure training is being developed and will be provided to all the employees (Target date: End of year 2004), and annually thereafter.

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 ongoing performance of project-specific environmental, health and safety and social activities contained in this ERS.