25169 - Ocean Sparkle II

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Environmental & Social Review Summary

Project Number

25169

Company Name

OCEAN SPARKLE LIMITED

Date ESRS Disclosed

Sep 5, 2006

Country

India

Region

South Asia

Last Updated Date

Jun 11, 2022

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jan 29, 2007
Signed : Jan 30, 2007
Invested : Feb 9, 2007

Sector

Port and Harbor Operations

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

Ocean Sparkle Ltd. (OSL or the company) is the leading Indian provider of comprehensive port services such as harbor towage, mooring, pilotage, ship-to-ship transfer of cargo, and control tower operations. It currently owns and manages one of India’s largest fleets of harbor vessels (including 28 tugs and 17 other vessels) and provides port services to eight key ports across India. Over the next three years, OSL expects to invest in several additional new/second-hand vessels for operations at ports, energy and offshore terminals in the country, which OSL does not now serve. This project involves an IFC loan to support these investments.

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:

- OSL’s business plan;
- Safety and Quality System Manual;
- Human Resource Manual;
- Incident Monitoring Records; and
- Safety Equipment (on board) inspection and testing logs.

The appraisal team interviewed the corporate and site operations managers, and site EHS managers. Further, the appraisal included a site visit to the company’s operations at Dahej in the state of Gujarat, India.

E & S Project Categorization and Applicable Standard

The following performance standards are applicable to the project:

- PS1: Social and Environmental Assessment and Management System
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement

There are no land acquisition and involuntary resettlement, and no impact on indigenous people or cultural property under the project, nor is it expected to have any impacts on natural habitats, forests, or protected or sensitive areas.

This is a Category B project 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.

Mitigation measures can be readily designed and any adverse impacts:

- are not likely to be diverse;
- are not likely to be irreversible;
- most likely will be limited to project site; and
- not likely to impact environmentally sensitive areas.

The key social, environmental, health and safety impacts associated with the project will include:

- Environmental, Health and Safety Management Systems;
- Labor working conditions, including occupational health and safety;
- Vessel safety and pollution control; and
- Oil/chemical spill containment and recovery.

Environmental and Social Mitigation Measures

Ocean Sparkle has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific agreed measures, comply with applicable environmental, health and safety and social requirements, including:

- International maritime standards under MARPOL, SOLAS, and IMO;
- Indian Merchant Shipping Rules and environmental, health and safety laws; and
- The IFC Social and Environmental Performance Standards.

The information about how these potential impacts will be addressed by OSL is summarized in the paragraphs that follow.

- Environmental, Health and Safety Management Systems:

OSL’s management is sensitive to environmental, social, occupational health and safety (EHS) aspects of their operations. The company has implemented an integrated certified safety and quality management system (IMS) based on ISO 9001:2000 standards and International Safety Management (ISM) Code. The safety and quality system addresses besides quality, occupational health, safety and environment (HSE) aspects. The IMS supports Safety of Life at Sea (SOLAS) and Marine Pollution Prevention (MARPOL) standards. Further, the company is planning to implement an environment, occupational health and safety management system based on ISO 14001 and OHSAS 18000 standards. Going forward and as part of the legal and other requirements of the IMS, OSL will adopt IFC’s Performance Standards.

Under the IMS, a well defined organizational structure and processes are in place and qualified professionals have been appointed. OSL already has internal on-board safety committees for all its vessels; in addition, management representatives also participate in port-level safety committees. Within a timeframe to be agreed with IFC, OSL will expand the composition of its internal safety committees to include representatives from on-shore staff as well. OSL has processes for quarterly internal HSEQ audits and bi-annual third party surveillance audits. The company has procedures for periodic reporting of HSE information to Senior Management.

- Labor and Working Conditions:

The company has a documented Human Resource (HR) Policy and Manual, which is linked to the safety and quality management system (IMS). Conditions of employment as also wages and benefits are communicated to employees/contract workers/pilots/masters and crews in the appointment letter or contracts, as the case may be. The company has standing orders (conditions of work), which the company will, within a timeframe to be agreed with IFC, translate into local language and display at its various operating facilities. The company’s policies explicitly state that the company is an equal opportunity employer and procedures are designed to encourage equal opportunity and non discrimination. Within a timeframe to be agreed with IFC, OSL will further strengthen its HR policies and procedures with regard to disciplinary procedures, grievance redress mechanisms, and maternity benefits.

OSL has an effective employee health and safety program, much of which is detailed in stringent written work procedures. Personal protective equipment is provided, as are instructions in its use. Seafarers and shore staff undergo periodic medical examinations. OSL crew complete basic safety training, and officers undertake advance courses in fire fighting, life saving and medical first aid. Regular mock drills for fire, spill response, and medical evacuation are conducted on vessels. In addition, OSL employees participate in many port-sponsored safety training programs. Accidents/incidents/near misses events are documented and analyses of causes are conducted to prevent reoccurrence in the future.

- Vessel Safety and Pollution Control:

All of OSL’s ships have certificates issued by regulatory authorities appropriate to their tonnage indicating compliance with Indian and international safety and pollution prevention requirements. Ships are regularly inspected, and all inspections are up to date. OSL ships are fueled at designated port facilities according to port/terminal procedures.

Ship-generated solid waste (kitchen waste, engine maintenance wastes, plastics, glass, etc.) and waste oil are segregated and periodically brought ashore to be disposed at authorized port reception facilities in a manner consistent with Indian and MARPOL requirements. In accordance with Hazardous Waste Management and Handling Rules of GoI, the management of hazardous materials and wastes will be improved through the provision of secondary containment in areas where these are stored.

- Oil/Chemical Spill Containment and Recovery:

The ports and terminals in which OSL operates are required by Indian law to have in place oil/chemical spill contingency plans and procedures, and OSL actively participates in each of these respective emergency response activities. In addition, the company has prepared a Disaster Management Plan (DMP) that covers the procedures for responding to collision, grounding, fire and oil spill events. OSL’s tug boats are suitably equipped with spill clean-up and fire fighting equipment consistent with the emergency response requirements of the various ports and terminals in which they operate. OSL’s Quality Manual contains the company’s Emergency Response Plan which provides for shipboard and shore side response in the event of a spill resulting from OSL operations. On-board equipment is periodically tested, and OSL crews are trained in emergency response by responsible port and terminal authorities. There have been no significant spill incidents from OSL operations.

Stakeholder Engagement

Owing to the nature of OSL’s marine-based port services activities, no local communities are affected by risks or impacts from this project. As a result, no formal information dissemination activities have been undertaken. Notwithstanding, and as part of the ISO 14001 certification process, which the company proposes to commence, OSL will be establishing methods for communication of the environmental aspects to external interested parties. In addition, the company will establish and maintain procedures for receiving, documenting and responding to concerns from any external interested parties relating to the project.

While OSL undertakes several corporate social responsibility (CSR) initiatives including assistance to local schools and tree plantation initiatives. OSL and IFC will jointly explore ways to further strengthen these initiatives.

For more information see the company’s website: www.oceansparkle.com, or contact:

Ocean Sparkle Limited Plot No. 128, 1st Floor, Srinagar Colony, Hyderabad, Andhra Pradesh INDIA - 500 073 Telephone: 040 - 23741138 / 23743507 / 23754600
Fax: 040 – 23748752
E-mail: oslhyd@oceansparkle.com

Client Documentation

File Name	Actions
FinalESAP.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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