25230 - Warid Telecom

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Environmental & Social Review Summary

Project Number

25230

Company Name

WARID TELECOM INTERNATIONAL - L L C

Date ESRS Disclosed

Apr 20, 2007

Country

Pakistan

Region

Middle East

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Sector

Mobile Telephony

Industry

Telecommunications and Technology

Department

WBG Digital and AI

Project Description

The project consists of the construction of a nationwide GSM cellular network in Pakistan by Warid Telecom (Warid or the company). The project includes capital expenditures for Warid’s network roll-out and expansion which includes IP technology in Warid’s core network, increasing subscriber capacity, and providing cellular coverage across Pakistan. The project covers a three year period from June 2006 to June 2009. Warid’s operations in Pakistan began in its financial year 2005, so nearly half of the physical project has already been completed. IFC’s investment would consist of an IFC A loan of up to $100 million, and an IFC B loan of $140 million.

Overview of IFC's Scope of Review

The following potential environment, health and safety and social aspects of the project were analyzed:

- the company''s management system for environmental, health and safety issues;
- tower siting and land use issues;
- compliance with national, local, and IFC standards;
- impacts on environmentally or culturally sensitive areas;
- storage, treatment and disposal of hazardous material (e.g., fuel oil, PCBs and CFCs including Halons);
- fair, safe and healthy working conditions; and
- security personnel hired by the company.

The review of this project consisted of appraising technical, environmental and social information submitted by Warid, and a visit by IFC investment and engineering staff to the project site, to meet with Warid management and to have a first-hand look at operational activities.

E & S Project Categorization and Applicable Standard

- PS1: Social and Environmental Assessment and Management Systems;
- PS2: Labor and Working Conditions; and
- PS4: Community Health, Safety and Security.

Besides PS1, PS2, and PS4, the project appraisal also assessed the applicability of PS3 Pollution Prevention and Abatement, PS5 Land Acquisition and Involuntary Resettlement, PS6 Biodiversity Conservation and Sustainable Natural Resource Management, PS7 Indigenous People, and PS8 Cultural Heritage.

With respect to PS3, there is no significant pollution from this project needing to be managed by Warid.

With respect to PS5, Warid has a policy not to acquire land if involuntary resettlement would be involved with it.

With respect to PS6, the project’s operations are located in urban and suburban areas where issues of biodiversity conservation and natural resource management are minimal or non-existent.

With respect to PS7, there are no indigenous people impacted by the project.

With respect to PS8, Warid has a policy not to develop a site if it would involve issues of cultural heritage.

Therefore, the assessment concluded that PS3, PS5, PS6, PS7 and PS8 are not applicable.

This project involves expansion of a cellular network, with construction and maintenance of cellular tower sites and construction and maintenance of office buildings, and warehouses. Key impacts associated with the project include:

- Environmental, Health, Safety, and Social Management;
- Labor and working conditions, including employee and contractor occupational health and safety; and
- Management of security personnel.

The nature of the company’s operations is such that no major adverse environmental or social impacts are expected to result from the project, and that it will be possible to avoid or mitigate any limited adverse impacts that might result. As a result, it has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

Environmental and Social Mitigation Measures

Warid has presented information and plans to address key 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 applicable IFC Performance Standards and IFC environmental, health and safety guidelines. The information about how these potential impacts will be addressed by Warid is summarized in the paragraphs that follow.

- PS1: Social and Environmental Assessment and Management Systems

For managing environmental, health, safety and social issues involved in its operations, including the development of any new sites and the maintenance of existing ones, Warid has agreed to develop a more formal and integrated set of policies and procedures. These shall reflect that some functions such as construction and maintenance of tower sites are outsourced. As a condition of IFC’s investment, these policies and procedures shall be drafted by Warid and submitted to IFC for review.

- PS2: Labor and Working Conditions

Human Resources Policy and Working Conditions:

There are approximately 1500 people presently employed directly as staff, all at least 18 years old. Site build-out, construction work, and maintenance of sites are outsourced. Warid has an existing employee recruitment and selection policy and procedures, with an individual responsible for HR and personnel management issues, including management of contractors. Warid has a procedure in place to ensure that no employee is below the legal employment age.

Warid’s policies and procedures will be revised as needed to promote the fair treatment, non-discrimination and equal opportunity of workers according to PS2. Warid will make commercially reasonable efforts to ensure that no contractors’ employee who performs work related to core functions of Warid for a substantial duration is below the legal employment age.

Occupational Health and Safety:

Warid will make commercially reasonable efforts to ensure that contractors’ employees who perform work related to core functions of Warid for a substantial duration shall be provided a safe and healthy work environment, including appropriate training, protective clothing and equipment, according to the requirements of PS2.

Life and Fire Safety:

Warid leases almost all of its office and operational sites, and owns only a few switching centers. For all these sites, appropriate measures for life and fire safety will be included in Warid’s policies and procedures.

- PS4: Community Health, Safety and Security

Security personnel are outsourced. Warid will evaluate risks and impacts relating to outsourced security personnel, to comply with the requirements of PS4. Any needed new measures will be included in Warid’s policies and procedures, and in contracts with security providers.

Stakeholder Engagement

Warid recognizes the importance of community engagement. For acquisition of tower sites, Warid’s procedure provides that when the contractor searches for sites, it assesses the legality of building and ownership, obtains agreement by land/building owners, and meets all requirements of local authorities.

Any complaints or grievances received from community members regarding this project are handled by relevant Warid staff who try to resolve the issue with the individual/community. If a case about the choice of a tower site cannot be resolved through discussions, Warid’s policy is to relocate the site.

For new tower sites developed, a clear procedure for disclosure to the local community will be included in Warid’s policies and procedures.

Questions or comments can be directed to:

Mr. Abdul Aziz, Chief Financial Officer
Warid Telecom (Pvt) Ltd.
9th Floor, EFU House
Jail Road,
Lahore, Pakistan
Telephone: +92 42 5715750 - 54

**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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Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

Stakeholder Engagement

Stakeholder Engagement

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