25455 - Cai Mep Port

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Environmental & Social Review Summary

Project Number

25455

Company Name

SP-SSA INTERNATIONAL CONTAINER SEVICES JOINT VENTURE COMPANY

Date ESRS Disclosed

Sep 19, 2007

Country

Viet Nam

Region

East Asia and the Pacific

Last Updated Date

Jun 20, 2024

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Nov 1, 2007
Signed : Jun 29, 2009
Invested : Dec 17, 2009

Sector

Port and Harbor Operations

Industry

Infrastructure

Department

Regional Industry - INF Asia & Pac

Project Description

SP-SSA International Container Services Joint Venture Company (SSIT or the company) is developing a greenfield container terminal on the Cai Mep River in Ba Ria-Vung Tau province (the Terminal) to serve the Ho Chi Minh City (HCMC) area in Vietnam. Container volumes in the HCMC area have increased significantly in recent years, causing congestion at the region’s ports and within HCMC. The Terminal will help address this situation by providing much needed container handling capacity to relieve existing congestion. It will also be well positioned to capitalize on the region’s projected growth in container volumes. Located approximately 85 kilometers southeast of HCMC, the Terminal will have a draft of 14 meters and the latest container handling equipment, enabling it to serve today’s large containerships which cannot call at existing HCMC ports due to draft and LOA (turning) restrictions.

Overview of IFC's Scope of Review

IFC reviewed several documents related to the project’s development including:

- Vietnam Seaport System Development Master Plan -- 2010, prepared by VINAMARINE, 1999;
- Detailed Master Plan of Group No. 5 Seaports (2010 – 2020), prepared by VINAMARINE, 2005;
- Environmental Impact Assessment Report – Cai Mep-Thi Vai International Port Project, prepared by VINAMARINE, 2003;
- Environmental Impact Assessment Report – SP-SSA International Terminal, prepared by PORTCOAST Consultant Corporation, June 2007; and
- Minutes of Public Meeting to discuss project plans and compensation – Government Representatives and Affected Communities, December 8, 2005.

In addition, visits to the Cai Mep Port site and surrounds were conducted by IFC staff on February 5-7, 2007. Face-to-face meetings with SSIT operational and technical management staff (representing SSA Marine and Saigon Port sponsors) and PORTCOAST staff conducted during the site visits.

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:

- PS1 – Social and Environmental Assessment and Management Systems
- PS2 – Labor and Working Conditions
- PS3 – Pollution Prevention and Abatement
- PS5 – Land Acquisition and Involuntary Resettlement, and
- PS6 – Biodiversity Conservation and Sustainable Natural Resource Management.

Because SSIT is located within an existing industrial development zone, there are no communities or indigenous peoples adversely affected by the terminal development, nor is this in an area where cultural heritage is expected to be found. Owing to existing road capacity, increase in truck traffic along local highways will not significantly increase traffic problems and accidents.

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. The SSIT terminal is one of several container terminals being developed to serve the Ho Chi Minh City (HCMC) area, and is part of the Detailed Master Plan of Group No. 5 Seaports in the HCMC area (the “Master Plan”) approved by the Prime Minister of Vietnam in 2005. The site for the SSIT container terminal is selected for its minimal environmental and social impact, as well as its favorable economic costs and benefits. Specifically, a very small number (3) of local farmers were affected and subsequently compensated for their losses, and mangroves cleared from the site will be reforested nearby under a government-managed program.

Environmental and Social Mitigation Measures

- Environmental and Social Assessment and Management Systems:

The process of social and environmental assessment of SSIT began with GOV’s preparation in 1999 of Vietnam Seaport System Development Master Plan -- 2010 to establish a framework for the country-wide development of seaports. Next, the Detailed Master Plan of Group No. 5 Seaports serving the Ho Chi Minh City (HCMC) area (approved by the Prime Minister of Vietnam in 2005) provided a cumulative social and environmental impact analysis of aggregate port development activities in the Cai Mep Port area, the foundation of which centered upon the reduction of traffic congestion (both road- and maritime-based) and resulting environmental pollution in the HCMC center. The Detailed Master Plan selected the site for the SSIT container terminal as part of the larger, existing industrial zone owing to its minimal environmental and social impact, as well as its favorable economic costs and benefits. SSIT is one of an additional three new contiguous container terminals planned for development in the Port area. All considered, the site offers the most favorable alternative for the development of these terminals.

Through the services of a qualified, experienced external consultant (PORTCOAST), SSIT completed an environmental assessment (EIA) of the proposed SSIT development (June, 2007). Based on the requirements of the Vietnamese Ministry of Natural Resources and Environment (MONRE) and IFC’s Performance Standards, the EIA identified the environmental and socio-economic impacts of the project, and recommended mitigation measures to minimize negative risks and impacts. The EIA also presents the schedule and party responsible (i.e., SSIT or appropriate government authority) for implementing each of the mitigation measures during both the construction and operation phases.

Going forward, SSIT will establish specific operating procedures, including appropriate monitoring and reporting processes, to ensure effective implementation of the mitigation measures. The company will also put in place an organizational structure which clearly sets out the roles and responsibilities of the individual to be charged with managing environmental and social performance.

- Labor and Working Conditions:

The Vietnamese Constitution and Labor Law grant all persons the right to work in an occupation of their choice, and to improve their skills without discrimination on the basis of sex, social class, beliefs or religion. It prohibits all forms of forced labor, and provides for the right to strike in accordance with the law. It covers a broad range of labor matters, including trade apprenticeship and training; the form and content of employment contracts and collective agreements; conditions of employment; social security and occupational health and safety.

SSIT’s operations will ensure fair labor and working conditions for an estimated 300 employees according to these national protections, as well as internationally-recognized human rights principles. The company will also develop an appropriate human resources policy providing information on employee rights under Vietnamese labor law, and that will be accessible to all employees. Local residents will be given priority for employment.

The company will develop and implement an occupational health and safety program. Employees will be provided with personal protective equipment (PPE), and procedures will be developed to ensure their use. They also will be properly trained in the relevant hazards, safety procedures and emergency response. Safety rules and guidelines will be established and regularly communicated to employees through internal circulars and training programs. All new employees will receive a basic safety and security presentation and regular training will be conducted for first aid and CPR, fire fighting, and emergency response.

- Pollution Prevention and Abatement:

Pollution prevention and abatement issues of concern at SSIT include: construction impacts; dredging and dredge spoil disposal; terminal pollution control and waste management; ship support operations (such as sewage disposal, bilge waste effluent disposal and fueling services); handling and storage of dangerous cargoes; and emergency response planning and preparedness. The EIA recommends a number of mitigation measures to minimize associated impacts in both construction and operation phases.

- Construction Impacts:

The potential environmental impacts from construction activities (i.e., land clearing and reclamation, quay structure, container yard and buildings, access road) include fugitive dusts, soil erosion and sediment loading increases, noise, waste management, and construction vehicle traffic disruptions. SSIT and their contractors and subcontractors are expected to control these to acceptable levels through application of standard construction environmental controls and mitigation measures recommended in the environmental assessment, which will be incorporated into the construction contract documents.

Some of the specific mitigation measures to be applied include:
- Installation of sediment traps to reduce sediment in runoff generated during land reclamation;
- Collection, storage and off-site disposal of liquid and solid wastes generation during construction; and
- Provision of water sprays and wheel washes to control dust on roads and trucks, as well as covers on construction materials.

Dredging and Dredge Spoil Disposal:

Dredging of the navigational channel in the Thi Vai River will be necessary to provide sufficient water depths to enable container ships to call on the SSIT terminal. To minimize sediment disturbance within the channel and impact on aquatic organisms, dredging will be conducted using cutter suction or hopper dredging to reduce turbidity dispersion, and will be oriented to promote migration of aquatic organisms. Approximately 100,000 m3 of dredged material will be generated during construction. Preliminary sampling indicates it does not contain hazardous substances in concentrations of concern. The dredged material will be disposed at an offshore disposal site some 18 km off the Vung Tau Cape to be designated by the MONRE, the responsible government authority. The site will be an aerated, well-mixed water body with a depth sufficient to provide good dilution. Consistent with the Dredged Material Framework (DMAF) of the London Convention (1972), SSIT will characterize the chemical quality of the material to be disposed at the designated site to confirm that impacts will be minimized. In addition, SSIT will perform water quality monitoring of suspended solids and turbidity before, during and after dredging operations.

Terminal Pollution Control and Waste Management:

Liquid effluents generated at the terminal will be treated and discharged consistent with good international practice. Stormwater runoff free of contamination will be collected in open drains with sediment traps and discharged directly to the River. Surface runoff from maintenance areas or areas where spills of chemicals might occur, and which in turn may cause contamination, will be separately collected and pre-treated in oil/water separators prior to discharge to the terminal central wastewater treatment system. Employee-generated sanitary wastewaters will be pre-treated in a 3-chambered septic tank and the effluent directed to the central wastewater treatment system for the terminal at large. The terminal central wastewater treatment plant shall have a capacity of 150 m3 per day, and consist of primary, secondary, and related sludge treatment processes. Treated effluent will be disinfected and discharge to the River consistent with Vietnamese standards (TCVN 5945: 2005; Class B). Areas where fuels or other hazardous materials are stored will be constructed within secondary containment structures to contain and prevent any leaks from being released to the environment. Waste oils and other solid and hazardous wastes generated will be periodically collected by a licensed contractor and appropriately recycled as fuel, or disposed at the approved government-operated waste facilities at Toc Tien.

Ship Support Operations:

SSIT will ensure that any vessel support services involving bilge and other ship-generated wastewaters and wastes management will be provided consistent with MARPOL requirements, including those ship-generated wastewaters treated at the terminal central wastewater treatment plant. SSIT will not permit vessels to discharge oily bilges, sludges, and water containing oily mixtures into the River, and will conduct inspections regularly to ensure that vessel operators comply with all laws and regulations.

Handling and Storage of Dangerous Cargoes:

Some of the containerized cargo handled at SSIT’s terminal may be hazardous under the International Maritime Organization’s (IMO) Dangerous Goods Code. This material would includes flammable gases, poisons, flammable liquids, corrosives, reactive and spontaneously combustible substances, oxidizing substances, etc. Containerized hazardous cargo will be stored by material class in segregated areas within the container storage yard with good access to containment resources and emergency response equipment; no radioactive materials or explosives will be handled. The majority of containers with dangerous cargoes will be handled as full containers, and the inventory is monitored continuously.

Emergency Response Planning and Preparedness:

SSIT will be responsible for coordinating the planning and response to hazardous materials accidents and emergencies at the terminal, and will put in place emergency action plans consistent with international maritime conventions (MARPOL 73/78). The company will also coordinate its emergency response activities with those of other nearby port and terminal operators, as well as with the Vietnamese maritime authorities responsible for general shipboard emergency response needs and related marine spill response activities. With regard to the landside terminal operations, SSIT will also have procedures, trained personnel, and equipment in place for responding to emergencies, including fire, chemical spills and mishaps, accidental release of petroleum products, and medical emergencies.

- Land Acquisition and Involuntary Resettlement:

No people physically resided on the SSIT site and only three households were using it for conducting shrimp farming and harvesting of fire wood. Prior to SSIT’s involvement in the project and as part of the Government of Vietnam’s (GOV) master planning efforts, government representatives (from Tan Thanh District and Phuoc Hoa Hamlet) established and implemented a resettlement and compensation process to address asset and income losses for these affected people. In November 2005, the GOV provided the families with a description of the compensation and resettlement proposals. This was then followed up with a meeting among all the parties in December 2005 to discuss concerns and answer questions from the affected parties, including the quantities and unit costs of various products and structures, the basis of calculations and the details of the compensation payments. The affected households unanimously agreed to and accepted the GOV’s payment terms, which included one-time cash payments. The compensation structure was then officially documented between the parties, including the details of payment amounts.

- Sustainable Natural Resource Management:

The SSIT site is part of a mangrove forest region that is habitat to many species of mangrove trees. The dense forest on the site itself is a mix of older and younger growing trees, most of which were planted and are being harvested for firewood. The forested area of the site is also being used for shrimp farming. According to the Mangrove Reforestation Plan developed by the Provincial Department of Agriculture and Rural Development (DARD), the forest will be cleared of mangrove trees prior to commencement of terminal construction, and a new area proposed in the Plan will be reforested in kind.

The Can Gio Mangrove Reserve is located across the Thi Vai River from the project site. UNESCO designated this as a Biosphere Reserve in 2000, and the Can Gio District People’s Committee has established a Board for managing this resource. SSIT does not threaten the viability of the Reserve.

Stakeholder Engagement

Government representatives responsible for the Cai Mep Port development have engaged with the local (Phuoc Hoa) community by holding consultation meetings to discuss the development of the container terminals prior to SSIT’s involvement in the project. No people physically reside on the SSIT site and only three households were using it for conducting shrimp hatching and forest harvesting. Compensation for lost assets for these households was discussed and unanimously agreed in December 2005.

For information about the project, contact:

Mr. Bob Watters, Board Member
SP-SSA International Container Services Joint Venture Company
Unit 805, Me Linh Point Tower
2 Ngo Duc Ke St, District 1
Ho Chi Minh City, Vietnam

Telephone: +1-206-654-3575
Fax: +1-206-623-0179

**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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