24758 - Geyser SA

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Environmental & Social Review Summary

Project Number

24758

Company Name

GEYSER SA

Date ESRS Disclosed

Mar 25, 2008

Country

Chad

Region

Africa

Last Updated Date

Aug 7, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Mar 25, 2009
Signed : May 12, 2009
Invested : Mar 17, 2010

Sector

Construction and Real Estate

Industry

Tourism, Retail and Property

Department

Regional Industry - MAS Africa

Project Description

The proposed expansion project is to upgrade and increase the water well-drilling capacity and hydraulics-related services for Geyser. To upgrade and sustain capacity, within the next 24 months Geyser needs to:

- acquire new heavy equipment including excavators, dozers, loaders and graders;
- renew and increase its fleet of vehicles and trucks; and
- refurbish its headquarters and construct two mobile workshops, one near the Kome oil fields in the south and the other in the eastern town of Abeche.

The total size of the project is estimated at $10.4 million and the total external financing needed is approximately $6.7 million.
A loan of $4.0 million for IFC’s own account is being requested from IFC.

Overview of IFC's Scope of Review

The review of this project consisted of appraising technical, environmental and social information submitted by the company including a review of:

- Geyser, SA. Safety/Health/Environmental & Socioeconomic Mini-Plan Chad Development Project Water-Well Drilling &Civil Works, June 2, 2006 (“the Management Plan”)
- Geyser, SA. Manuel Procédure de Gestion, Direction Kome. (Draft) May 1, 2007.

The review also included documentation of the company’s quality management plan, drug and alcohol policy, and driving policies.

The appraisal team, which included the technical specialist, has visited the site where vehicle maintenance is carried out, as well as drilling sites. Further, the team has conducted interviews with the company’s management concerning the social and environmental aspects of the project.

E & S Project Categorization and Applicable Standard

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS 1: Social and Environmental Assessment and Management Systems
- PS 2: Labor and Working Conditions
- PS 3: Pollution Prevention and Abatement
- PS 4: Community Health and Safety

Geyser SA primary business is the drilling of water wells for both the petroleum industry and donor-funded projects in Chad. As such it does not acquire land nor does it affect crops. All the same it does have in place a procedure for crop compensation should crops or other assets be accidentally affected. Similarly, the probability of encountering natural habitats or physical cultural heritage in this type of project is low. However, the Company’s management system includes procedures and training for situations where the drilling activities may impact on natural environments and has a chance finds procedure in place should archaeology artifacts be found. Thus, risks associated with PS 5, 6 and 8 are considered low, but the project has in place procedures to address them should issues arise. The project area of influence does not have Indigenous Peoples groups as defined for the purposes of PS 7.

The following key social and environmental issues were identified for this project:

- social and environmental assessment of potential project risk and issues;
- social and environmental management systems; and
- disposal of waste oil from maintenance of vehicles.

This is a Category B project according to IFC’s Environmental and Social Review Procedures, 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.

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 environmental and social requirements:

- the host country laws and regulations,
- the IFC environment and social Performance Standards and
- the IFC/ World Bank 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.

- PS 1: Social and Environmental Assessment and Management Systems:

- Social and environmental assessment.

As a contractor, Geyser has relied on the social and environmental due diligence of its major clients. In accepting contract work, it falls under the social and environmental management plans of the international companies and donors with which it works. As its reliance on international clients decreases as a percentage of its business, the company will need to carry out its own due diligence of projects to make sure that it can meet the requirements of the Performance Standards and other international stakeholder requirements. Geyser will develop project screens to ensure that it will bid on contracts according to the whether the projects will meet these requirements.

- Social and environmental management systems.

As a result of its contract work with Esso and international donors, Geyser has in place management systems that help it address project risks as identified by its clients. Its main management plan for working with Esso (“the Management Plan”), which incorporates fundamental principles for environment, health, safety and community engagement, will be applied to all projects whether required by the client or not. The management system and plan meet the requirements of PS 1. The management system will need to be guided by assessments, some of which, as noted, the company will need to carry out itself.

- Organization.

The company has developed an organization in which responsibility for environmental, health and safety (EHS) management is under each one of the three regional managers. This arrangement integrates the actual operational work with the EHS requirements of the company. The company has also integrated management of EHS performance into the quality management systems of the company, the head of which in turn reports to the administrative director. This organization supports both direct operations and overall company management in ensuring adherence to the Management Plan

- Training.

The company has a training plan that includes appropriate training for all staff employment for 14 days or longer in occupational health and safety, and avoidance of environmental impacts. IFC finds this plan acceptable.

- Community Engagement.

The Management Plan dictates that communities should be informed about: the nature of the work that will be performed; the duration of the work effort in a specific locale; temporary employment opportunities, and associated hiring procedures, for local inhabitants; project worker positions; and compensation in the unlikely event that agricultural or community resources are damaged while performing the work. As part of its overall due diligence in the future, the company will ensure that the project work it is asked to perform has been discussed with the community. Where questions arise as a result of community consultations, Geyser may need to inform its client that the community agreement or input into the project needs further clarification such as when the community finds the proposed location of a well inappropriate. Geyser will also set up a community grievance mechanism to ensure that its Management Plan is being followed on all of its projects.

- Monitoring and Reporting.

As part of its quality control system, the company has a monitoring program in place. Also, as a result of its contracting work with international clients, Geyser has to fill out reports on its performance, including incident reports, waste disposal reports, and chance archaeological find reports. The company will extend this monitoring to all contract work and will provide the results to central management as part of the quality control function. The quality control system is set up to address the underlying causes of non-compliance, and IFC expects that the company will revise its social and environmental management systems at least annually to ensure that consistent problems are addressed. Geyser will make the annual updates available to stakeholders, including communities where its work is on-going.

With the development of an in-house capacity for social and environmental assessment and community consultation, the project will meet the requirements of PS 1.

- PS 2: Labor and Working Conditions:

- Human Resources Policy.

Geyser will develop a human resources policy consistent with PS 2 and international norms. It will include provisions to ensure non-discrimination and equal opportunity.

- Worker organizations.

Geyser''s workers currently do not belong to labor unions. In its human resources policy, the Company will include a policy recognizing the right of its workers to bargain collectively and to join or form workers'' organizations.

- Occupational health and safety.

The principles, practices and training in the Management Plan should ensure that occupational health and safety are adequately addressed. These include provision of appropriate personal protective equipment, delineation of job sites where such equipment should be worn, and training for people working at a job site for longer than two weeks. The quality control function should make sure that these principles and practices are carried out effectively.

With the development of a human resources policy, the company will meet the requirements of PS 2.

- PS 3: Pollution Prevention and Abatement:

- Pollution prevention.

Geyser’s activities result in limited pollution. The company does ensure that no chemicals are used to flush wells, no oil-based drilling muds are employed, and the well casings are not connected with sealing glues, lubricants or tapes. Solid waste is removed from the site and is disposed of by the client. It is never burned. There are generally no effluent discharges associated with Geyser’s business. Vehicles are maintained in designated areas, and appropriate measures are taking to protect soil and save waste oil when maintenance has to be done in the field. IFC has asked that waste oil, which has been given in small volumes for use in a third wood preservation business be collected and disposed of by hazardous waste handling company. With this exception, the company has appropriate measures for addressing what small amounts of pollution, solid waste, and hazardous materials with which it must deal.

With the alternative disposal of waste oil, the Company will meet the requirements of PS 3.

- PS 4: Community Health, Safety and Security:

- Community health and safety.

Geyser follows strict speed standards when driving on highways. These are based on Esso standards. The company also has policies and training in place to address impacts from malaria and sexually transmitted in the communities where it works. This includes such practices as making sure that the ruts made by its truck tires are filled in to prevent creating breading grounds for mosquitoes.

The company meets the requirements of PS 4.

Stakeholder Engagement

As part of the company’s Management Plan, it informs communities about its well-drilling and civil works activities. Geyser will increase the depth of this engagement as it takes on contracts where the client has not undertaken prior consultation with communities. Geyser will make its Management Plan (and subsequent revisions) available to communities as part of its engagement. Furthermore, the procedure will include a grievance mechanism for instances where communities believe that procedures have not been followed. Finally, Geyser will make its Management Plan and annual revisions publicly available through its offices.

Client Documentation

File Name	Actions
Geyser CAP 180308.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).

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