24640 - Institute of Business Management

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Environmental & Social Review Summary

Project Number

24640

Company Name

INSTITUTE OF BUSINESS MANAGEMENT

Date ESRS Disclosed

May 31, 2006

Country

Pakistan

Region

Middle East

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Sep 12, 2006
Signed : Dec 19, 2006

Sector

Colleges, Universities, and Professional Schools

Industry

Health, Education and Life Sciences

Department

Regional Industry MAS MCT

Project Description

The Institute of Business Management (IOBM) is a premier private sector institution catering to the collegiate and pre-collegiate market in Karachi, Pakistan. The Institute is undertaking an investment program to increase its present enrollment capacity from 3,000 to 5,400 students including about 800 school students, and provide support services to students as well as faculty members. More specifically, the project consists of:

- the acquisition of up to 10 acres of land;
- construction of a new college building for holding of classes;
- construction of 50 apartments for faculty/staff members;
- construction of a 1,200 seat auditorium; and
- completion of on-going expansion activities.

IOBM is looking at becoming a center of excellence in its disciplines. The project will allow it to build on its continuous growth. The availability of residential facilities at the Institute will help attract and retain quality teaching faculty and at the same time increase space and services for visiting international faculty members. The proposed auditorium will be used by the Institute and other organizations to hold seminars and conferences.

Overview of IFC's Scope of Review

The review of this project consisted of appraising technical and environmental/social information submitted by IOBM and a site visit to the existing campus in Karachi. In addition, the following documents were reviewed:

- Site layout plan for the new campus;
- Environmental management program for the existing campus; and
- Proposed energy efficiency options for power plant(s) at new campus.

The appraisal team interviewed the following during the appraisal visit:

- Mr. Syed Ahsan Ali, Manager Engineering;
- Mr. M. W. Jahangir, Senior Manager, Internal Audit and Corporate Affairs;
- Mr. Talib S. Karim, Director, Academics and Business Support Center; and
- Ms. Naz A. Soomro, Controller of Examinations and Executive in Charge, SAC.

E & S Project Categorization and Applicable Standard

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 and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The project involves expansion of an institution of higher education currently occupying 9 acres of land in a peri-urban section of Karachi. An additional 5-10 acres will be acquired, adjacent to the current campus, on a willing buyer-willing seller basis.

Environmental and Social Mitigation Measures

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 host country laws and regulations and the World Bank/IFC (WBG) environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the Sponsor is summarized in the paragraphs that follow and in the attached Environmental and Social Action Plan.

- Site selection, acquisition, development and permitting

The IOBM campus is located in a peri-urban part of greater Karachi that is developing rapidly. The Karachi City Government has developed a master plan for the development of the city, including these areas of expansion. IOBM acquired all of the land for its present 9-acre campus from private owners on a willing buyer-willing seller basis. The additional 5-10 acres of land to be acquired for the project will be obtained on a similar basis, and documentation of the broad terms of the land sales agreement will be provided to IFC. All land sales in this part of Karachi must obtain a No Objection Certificate (NOC) from the provincial government. Construction plans for the expansion also must obtain approval of municipal authorities. The expansion plans are at an initial stage and dependent on the acquisition of land. Approval of the municipal authorities and other regulatory bodies will be obtained and copies provided to IFC after the acquisition of land is completed and expansion plans finalized. Although not under national or local regulations required to complete an Environmental Impact Assessment, IOBM has retained third party consultants to develop energy efficiency, waste water treatment and fire safety programs for both the existing campus and proposed expansion. IOBM has taken the lead in vegetating what is a fairly barren area, planting trees both on its own property and in the verge between its boundary and a municipal effluent drain, which runs parallel to the campus about 20 meters from IOBM’s boundary wall. Intended for storm water drainage and tidal control purposes, it is used by many industries in the area, including chemical plants and tanneries, as an effluent drain flowing to the sea. In conjunction with IUCN and the Sindh provincial Environmental Protection Agency (EPA), IOBM has undertaken a tree planting effort, both on its own property and in the verge outside its boundary that runs along the drain, to reduce the odor that comes from the drain.

- Quality and sustainability of potable water supply

The water requirement for the existing campus is 15,000 gallons (56,800 liters) per day, obtained from a combination of municipal supplies and private sources. Total requirement post-expansion is expected to be approximately 45,000 gallons (170,400 liters)/day. IOBM receives treated water of potable quality from the Karachi Water Board.

- Handling and disposal of hazardous and non-hazardous wastes

IOBM has a chemistry laboratory for its grade 11 and 12 students. The laboratory uses small amounts of solvents, acids and other chemicals. Chemicals are stored in locked and temperature controlled rooms and their use and handling is carefully monitored by the head of the Chemistry Department. Small amounts of dilute chemicals used in classroom experiments are discharged to the domestic waste water system. IOBM will undertake testing for residual amounts of these chemicals to ensure that levels conform to host country and WBG group limits and provide these results to IFC within an agreed timeframe. All solid wastes (paper, plastics, cardboard, used oil and lubricants) are sold to vendors for recycling. Used oil is used by the cement industry as a fuel supplement.

- Liquid effluent management

As described above, effluents comprise only domestic waste water and small amounts of dilute chemicals from the chemistry laboratory. IOBM has installed a waste water treatment tower that treats to a standard that enables reuse of domestic waste water and grey water for irrigation purposes. A new treatment tower has been planned to handle the expanded amount of domestic waste water that will be generated after the expansion. IOBM also will confirm in writing that the proposed design for the expanded wastewater treatment plant will be able to ensure that treated wastewater will continue to meet these limits after the expansion is complete. As is presently done, treated waste water will be used for irrigation purposes on lawns and gardens on the campus.

- Air emissions

IOBM has installed a system of several small diesel generators to supply its entire power supply. The facility currently utilizes eight small diesel generators in two powerhouses located across the campus. Currently these generators provide a total of 1.8 MWh of electricity. After the expansion, the power plant will comprise a total of 2.6 MWh. The largest portion of the power demand is the air conditioning load, which comprises approximately 65% of the total load demand. As part of the expansion, IOBM hired a third party consultant to assess options for rationalizing its power supply system. On the basis of the consultant’s recommendations, IOBM intends to relocate all generators to one location, which will improve efficiency. In addition, IOBM is currently assessing a number of clean energy/energy efficiency options, including the use of natural gas to run the air conditioning system, and the use of liquefied petroleum gas (LPG) to replace up to 60% of diesel fuel used in generators. Either of these options would result in a net improvement in IOBM’s greenhouse gas (GHG) emissions, as well as lowering total energy costs.

Occupational health, safety and hygiene: Employee health and safety conditions at the existing facility are very good. Maintenance staff receive induction training on basic health, safety and housekeeping procedures. IOBM provides medical care to all staff, including routine inoculations and prescription medicines. Subsidized meals are provided to all employees in the student and faculty cafeterias. IOBM has designated the entire campus as a “no smoking” area, for both health and fire safety reasons. On the basis of the site visit undertaken, it appears that housekeeping and hygiene at the existing facility are similarly well managed.

- Workplace conditions and employee training programs during construction operations

All construction activities are undertaken by a private contractor. On the basis of observations made during the IFC site visit, occupational health, safety (OHS) and training for contractor personnel needs to be improved. Personal protective equipment for workers appears either not to be provided or its use not routinely enforced. Enforcement of safe working practices, such as use of safety harnesses when working at heights, similarly requires improvement. Within a timeframe to be agreed with IFC, IOBM will provide written documentation that it has included all relevant occupational safety and health requirements in its tender documents and standard operating procedures for construction contractors to ensure conformance with IFC’s Occupational Health and Safety guidelines.

- Life and fire safety in the design, construction and outfitting of new and existing facilities

The existing campus was designed to meet UK life and fire safety standards. All buildings are equipped with fire extinguishers (foam and CO2), fire blankets, smoke detectors and fire rated doors. The expansion design includes a plan for a fire ring and mains with connectable hoses, as well as a dedicated water supply for fire emergency use. The existing facility has 10 apartments for faculty/staff at the current facility, and expects to have a total of 50 apartments when the expansion is complete. All apartments are equipped with smoke detectors and fire extinguishers. The final design for residential facilities will be submitted to IFC for review of life and fire safety aspects, to ensure conformance to internationally accepted standards. Maintenance staff are trained in the use of all fire fighting equipment, and drills of simulated fire and other emergencies are held periodically. Security at the campus is a high priority. IOBM hires its own security staff rather than contract with a third party to provide this service. The reasons for this are to:

- ensure that security guards get to know the student body,
- reduce the sense of an academic institution having the feeling of being a “high security” facility, and
- prevent there being any mistaken identification of a student as a security threat.

- Systematic management of quality, environmental issues, and occupational health and safety

As noted above, IOBM has initiated a number of environmental management and improvement projects, especially in the areas of energy efficiency and greenbelt development. These initiatives are not at present part of an overall social, environmental, and health and safety (SEHS) management system, however. IOBM management recognizes the need to establish such a system, and has committed to developing a SEHS management system using in-house resources, supplemented by input from third party consultants on certain issues. Receipt of a draft SEHS management system acceptable to IFC will be covenanted as a condition of first disbursement.

- Corporate social responsibility efforts, including HIV/AIDS awareness

IOBM views its corporate citizenship role as a fundamental part of its operations. The institution will develop a strategic plan to identify appropriate and effective means for supporting community initiatives in its areas of influence. IFC will provide details on its IFC Against AIDS for possible dissemination among its students, staff and other stakeholder groups.

- Timely reporting on environmental and social performance to IFC

IOBM will, in a format to be agreed with IFC, submit Annual Environmental and Social Monitoring Reports (AMRs) timely within 90 days of the end of its financial year.

Stakeholder Engagement

IOBM has undertaken the following community engagement and improvement activities:

- Revegetation of the land adjacent to the effluent drain, in cooperation with the local office of the Pakistan Environmental Protection Agency, IUCN and other neighborhood organizations
- Establishment of a financial assistance program to provide scholarships to 350 low-income students; this program will be increased as a result of the proposed expansion.
- Development of a subsidized transport facility that is being currently being availed of by some 800 students; this service also will be extended as a result of the expansion.

Client Documentation

File Name	Actions
IOBM_ESAP.pdf

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and 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 an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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