26878 - CTI Group II

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Environmental & Social Review Summary

Project Number

26878

Company Name

CTI GROUP INC.

Date ESRS Disclosed

May 19, 2008

Country

Jordan

Region

Middle East

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Dec 19, 2008
Signed : Dec 30, 2008
Invested : Mar 12, 2009

Sector

Water Transportation

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

Ranked among the largest specialized cement carrier fleet owners in the world, CTI Group Inc.’s (CTI or the company) activities cover all aspects of logistics for the specialized cement trade including trading, handling and transport, as well as operating a fleet of nine bulk carriers. Operating on a global basis, the company is embarking on an expansion program to expand its fleet of cement and dry bulk carriers. IFC’s financing would be used to cover part of the costs of acquiring the additional vessels, beginning with the purchase of a cement carrier which the company is already operating on a bareboat charter basis. This expansion will help CTI optimize its fleet structure and expand its transport operations.

Overview of IFC's Scope of Review

IFC’s review of this repeat investment relied on the periodic and ongoing supervision of CTI’s environmental and social performance per the conditions of IFC’s existing investment in the company. This included a review of the company’s Annual Monitoring Report for the 2007 reporting period (dated March 2008), as well as the Quality Performance Goals for 2008 developed as part of their certified ISO 9001 Quality Management System.

E & S Project Categorization and Applicable Standard

Since CTI’s activities are limited to the marine transport operations of its cement carrier shipping fleet, 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):

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

The five remaining Performance Standards are not applicable for purposes of this review. There is no community exposure to risks, or people affected by land acquisition. Shipping activities do not involve major threats to biodiversity or habitat destruction. Moreover, there are no indigenous people or cultural heritage issues associated with these activities.

Environmental and Social Mitigation Measures

Key environmental and social issues and mitigation are essentially the same as those described for the original investment, and CTI continues to demonstrate its ability to manage these appropriately. In particular, the company continues to comply with international maritime standards under SOLAS, MARPOL, the International Safety Management (ISM) code, and with IFC Performance Standards. The information about how these are being addressed by CTI is summarized below.

- Environmental and Social Assessment and Management

Certified to the international quality management systems standard (ISO 9001), CTI’s management processes are structured to meet the safety and environmental requirements of the relevant international maritime codes – IMO, ISM, MARPOL, SOLAS. The Technical Manager has the appropriate responsibility and authority to manage EHS matters, and EHS procedures for shipboard operations are described in the company’s policy and procedures manual. The company has well established training programs for both its shore-based and ship personnel. In the near term, CTI plans to also become certified to ISO 14001, the independent environmental management system standard.

Recently and during 2007, CTI was independently audited with respect to compliance with the ISM code for Bulk Carriers and other dry cargo vessels, and was found compliant. CTI has not experienced any incidents involving collision, grounding, fire, or spills recently. This is further evidence that the procedures in the ISM Procedures Manual are effective, appropriate, and strictly followed.

- Labor and Working Conditions

CTI currently employees 545 staff, comprising office staff, masters, engineers, and other crew members. The company will develop a Human Resource (HR) Policy and Manual linked to the safety and quality management system. Conditions of employment and wages and benefits are appropriately communicated to its employees in the appointment letter or contracts, as the case may be. The company’s policies will explicitly state that the company is an equal opportunity employer and procedures are designed to encourage equal opportunity and non discrimination.

CTI has an active occupational health and safety program designed to ensure the safety of their crews and workers, and recorded only 6 injuries in the last reporting period. The program includes a set of specific safety and health procedures for ship and shore-based activities, including onboard safety and security drills. Personnel are provided with appropriate personal protective equipment, and participate in extensive health and safety training programs covering fire fighting, hazardous work activities, life saving, and medical first aid. Seafarers and shore staff undergo periodic medical examinations.

- Pollution Prevention and Control

Engaged in the transportation, loading and discharging of bulk cement, CTI’s fleet is operated to comply with appropriate and relevant international safety and pollution control requirements. Hulls are periodically inspected for corrosion, and repaired to maintain structural integrity. Vessels can process certain ship-generated wastes and effluents – domestic solid wastes, oily wastewaters -- directly on board using installed treatment systems, such as oil/water separators and incinerators. Wastes not treated onboard, such as maintenance waste and oils, ballast water, and sanitary sewage, are stored in tanks and delivered to authorized on-shore port facilities for treatment and disposal. For ships traveling to Brazil, the US, and the EU, Ballast Water Management Plans are being developed and approved by the appropriate authorities.

Effluent discharge from ship-based oil/water separators does not exceed the allowable 15 ppm MARPOL limit for oil. Through development of vessel-specific fuel oil operating procedures, the company is addressing compliance with new MARPOL air pollution control standards (Annex VI, May 2005) governing sulfur oxide emissions from diesel engines. These standards require ships sailing in the Baltic Sea to use fuel with a maximum sulphur content of 1.5%, or to install an exhaust gas cleaning system to reduce emissions accordingly. The company will provide port inspectors with International Air Pollution Prevention (IAPP) certificates for applicable diesel engines along with other related documentation to permit operation of the ships with regard to safety and environmental protection.

The vessel permanently operating as a floating cement terminal in Stockton, California uses shore facilities operated by third parties for sewerage and waste disposal. Bag houses are installed on cement handling equipment to control dust emissions consistent with local air pollution permit requirements.

CTI has in place an adequate oil spill prevention policy and procedure, and has not experienced any oil spills over its operating history.

Stakeholder Engagement

Owing to the nature of CTI’s marine-based 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, CTI 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.

**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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