25977 - TS (Expansion)

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Environmental & Social Review Summary

Project Number

25977

Company Name

Tecon Salvador S/A.

Date ESRS Disclosed

Jun 21, 2007

Country

Brazil

Region

Latin America and the Caribbean

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Nov 28, 2007
Signed : Nov 29, 2007
Invested : May 15, 2008

Sector

Port and Harbor Operations

Industry

Infrastructure

Department

Regional Industry - INF LAC

Project Description

The proposed IFC financing entails a repeat investment in Tecon Salvador (or the company), a container terminal located in the Port of Salvador, in the state of Bahia in North East Brazil. The Port of Salvador comprises 9 berths, of which two are leased to Tecon Salvador, and seven remain under public ownership. It is the largest port in the North East region. Tecon Salvador serves a regional, export-orientated market, mainly concentrated in Bahia.

IFC made an initial investment in the company in 2001, when Tecon Salvador was awarded the right to operate the terminal under a 25 year concession.

The proposed new financing will support Tecon Salvador’s capital expenditure plans for 2007 and 2008, the most important aspect of which is the purchase of equipment, and accompanying civil works, required in order to optimize operations.

Overview of IFC's Scope of Review

IFC’s environmental and social review of this investment relied on the following information:

- EHS Audit of Tecon Salvador, prepared by GAIA for the IFC (May 2000);
- Environmental Performance Annual Monitoring Reports, submitted annually by Tecon Salvador (2002 through 2006);
- Expanded Project Supervision Report, prepared by IFC and rated as Best Practice (2005)
- Environmental and Social Review, Independent Evaluation Group-IFC (March 2006).

In addition, IFC has conducted periodic and ongoing IFC supervision of Tecon Salvador’s environmental and social performance per the conditions of IFC’s existing investment in Tecon Salvador (#10201) since 2001. Finally, the most recent site visit was conducted in March 2006 by IFC as part of the Independent Evaluation Group’s Environmental and Social Review.

E & S Project Categorization and Applicable Standard

The following Performance Standards apply to this repeat investment:

- PS1 – Social and Environmental Assessment and Management;
- PS2 – Labor and Working Conditions;
- PS3 – Pollution Prevention and Abatement.

Tecon Salvador’s container terminal activities are confined to an existing industrialized area, and there is no community exposure to risks and impacts or people affected by land acquisition. Terminal activities do not extend to any ecologically sensitive areas. Moreover, there are no indigenous people or cultural heritage issues associated with its activities.

IFC’s ongoing review and supervision of the existing investment in Tecon Salvador have shown the company is continuing to meet its environmental, health and safety, and social compliance obligations, including the applicable and relevant IFC policies and guidelines. The 2006 environmental and social review conducted by IFC’s Independent Evaluation Group rated the overall environmental, social, and health and safety performance as Satisfactory, and the current Environmental and Social Risk Rating (ESRR) for the project is B – 2 – Average.

Environmental and Social Mitigation Measures

Because the Expansion project will not materially change the footprint of the existing terminal activities, no further social and environmental assessment (beyond that which was undertaken originally) is needed. Key potential social and environmental risks and impacts were considered in the establishment of the original terminal concession in 2000. The company subsequently received its environmental operating license from CRA, and is operating in compliance with its conditions.

Environmental and Social Management.

Tecon Salvador has established an environmental management system, including an individual designated as Environmental Coordinator with the authority and responsibility to manage environmental performance. Appropriate policies and procedures are in place to ensure ongoing compliance with environmental obligations, as evidenced by the company’s having recently received certification to ISO 9001, the international quality management standard. In 2007 and relying on the ISO 9001 framework, Tecon Salvador intends to become certified to the related ISO 14001 environmental management system standard.

Labor and Working Conditions.

At the end of 2006, the company employed a total of 348 staff. Consistent with Brazilian labor legislation, personnel have the right to organize and bargain collectively. The workforce has been steadily increasing since operations began in 2000, at which time only 149 staff were employed. Other than the minor amount of retrenchment of CODEBA personnel that occurred in 2000 at the time the operation was privatized (which was appropriately managed in accordance with Brazilian requirements), no further retrenchment is contemplated. Tecon Salvador has an ongoing training program that enables dismissed employees to secure employment at other companies in the area.

Tecon Salvador, like other private entities operating within the Port, outsources its occupational health and safety management activities to OGMOSA, a separate organization within the Port of Salvador established for this purpose. With the support and resources of OGMOSA, an effective employee health and safety program for Tecon Salvador is functioning properly and in compliance with Brazilian requirements, which are consistent with internationally recognized norms. In accordance with relevant legislation, medical control and occupational health programs (PCMSO), workplace risk prevention programs (PPRA), and mandatory procedures and equipment providing protection against accidents and diseases at work (including first aid to injured personnel) are in place. Training on all the main elements is provided to employees, including training in emergency response (fire, spill response, and medical evacuations). Accidents/incidents/near misses events are documented and analyses of causes are conducted to prevent reoccurrence in the future. Over the company’s six year operating history, only one fatality has occurred. Other than this, other incidents over the years have been minor and typical of international container terminal operations.

Pollution Prevention and Control.

Tecon Salvador actively practices, or otherwise ensures, appropriate pollution prevention and control of the following aspects of its activities:

- Maintenance dredging and dredge spoil disposal;
- Stormwater drainage;
- Liquid, solid, and hazardous waste disposal;
- Oil/hazardous materials storage and handling;
- Handling and storage of dangerous cargos;
- Ship-support operations; and
- Emergency response planning and preparedness.

Maintenance dredging of the harbor is the responsibility of the Port Authority (CODEBA), although there has little need for dredging owing to the harbor’s natural conditions. Stormwater collection is adequately managed. Employee-generated sanitary wastewaters continue to be managed via a simple anaerobic filter and septic tank system. The contents of the septic tank are removed monthly by a licensed contractor and disposed properly. Contaminated oily wastewaters from the maintenance shop and chemical storage area are collected and treated with four gravel-aided oil/water separators. Waste oils are periodically removed by a licensed oil recycler. A scrap recycler regularly collects scrap metal and empty canisters. A segregated hazardous cargo area with separate containment and drainage systems has been established, and is operating properly. Ships calling on the Terminal understand that no ship support services, such as bilge waste removal or fuel bunkering, are provided. Tecon Salvador has prepared and implemented its own Terminal Emergency Plan, which addresses fires and oil and chemical spills, and includes information on organizational responsibilities, procedures, resources, and cooperation with CODEBA’s port-wide, marine-based emergency policies and procedures (provided by Hidroclean, the Port’s marine spill control contractor), as well as with the Salvador State Fire Authority. Along with these authorities and other terminal operators, Tecon Salvador conducts regular emergency training exercises. The company received its ISPS (port security) certification in June 2004.

Stakeholder Engagement

Owing to the location of Tecon Salvador’s container terminal activities within the larger, industrial Port of Salvador, the company is not directly involved in formal information dissemination regarding the management of environmental risks and impacts. Instead, CODEBA, the government entity managing the Port maintains a constructive relationship with the nearby communities consistent with the requirements of current Brazilian legislation. Notwithstanding, and as part of the ISO 14001 certification process, which the company proposes to commence, Tecon Salvador 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.

Company Contact Details:

Mr. Demir Lourenço Júnior
Executive Director
Tecon Salvador S.A.,
Av, Eng. Oscar Pontes,
97/Portão n°3,
Porto de Salvador,
Comércio,
Salvador,
BA. CEP 40460-130,
Brazil

Tel: 011-55-71-2106-1502
Fax: 011-55-71-2106-1544

**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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