27021 - OceanSparkle III

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Environmental & Social Review Summary

Project Number

27021

Company Name

OCEAN SPARKLE LIMITED

Date ESRS Disclosed

Jun 30, 2008

Country

India

Region

South Asia

Last Updated Date

Jul 21, 2022

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 24, 2009
Signed : Jun 29, 2009
Invested : Jul 20, 2009

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 management services such as harbor towage, mooring, pilotage, ship-to-ship transfer of cargo, and control tower operations. It currently owns and/or manages one of India’s largest fleets of harbor vessels (including 42 tugs and 19 other vessels such as dredgers, pilot tugs, mooring boats etc.) and provides port services to fifteen ports across India. Over the next two years, OSL expects to invest in several additional new/second-hand vessels to expand its operations at ports, energy and offshore terminals in the country. This project involves an IFC loan to support these investments.

Overview of IFC's Scope of Review

The review of this project builds upon the appraisal for IFC’s previous investment in the company (Ocean Sparkle II, project # 25169) and consisted of appraising technical, environmental and social information submitted by the company including a review of:

- OSL’s 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. Further, the appraisal included a site visit to the company’s operations at Kakinada port in the state of Andhra Pradesh, India.

E & S Project Categorization and Applicable Standard

While all Performance Standards (PS) 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 System;
- PS2: Labor and Working Conditions; and
- PS3: Pollution Prevention and Abatement

There is no land acquisition and involuntary resettlement, and no impact on indigenous people or cultural property under the project, nor is it expected to impact 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; and
- most likely will be limited to project site.

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;
- applicable Indian Merchant Shipping Rules with respect to environmental, health and safety and labor 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 in the process of implementing an environment, management system based on ISO 14001 standards and an occupational health and safety management system certified to OHSAS 18001 by March 2009 and December 2009 respectively.

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. While OSL has expanded the composition of its internal safety committees to include representatives from on-shore staff at most locations, the company will complete this process to cover all of its operating locations by July 2008. OSL has processes in place for bi-annual 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) displayed on vessel notice boards, which have also been translated into relevant local language and displayed at OSL’s various operating facilities. The company will ensure that the standing orders translated into relevant local language, is displayed at all operating locations (including new locations as and when these become operational). 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. The company has upgraded its procedures with regard to disciplinary action, employee grievance redress, contract labor management and maternity benefits in accordance with statutory and Performance Standard requirements. OSL will, within a timeframe agreed with IFC, ensure and demonstrate full adherence to these upgraded procedures.

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 for its use. Onboard seafarers 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. The company has upgraded the hazardous waste management practices including provision of secondary containment at applicable onshore hazardous material and waste storage locations.

- 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 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. Notwithstanding, and as part of the ISO 14001 certification process, 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.

OSL undertakes several corporate social responsibility (CSR) initiatives including assistance to local schools, beach cleaning, support to coast guards and tree plantation initiatives. For more information see the company’s website: www.oceansparkle.com.

The company will locally disclose, at its corporate office (location details provided below) and on its website (www.oceansparkle.com) a document summarizing the measures OSL proposes to implement to manage social and environmental risks associated with its operations.

Any queries and/or comments about the project may be directed to:

Capt. S.V. Subhedar

Ocean Sparkle LimitedPlot No. 128, 1st Floor, Srinagar Colony, Hyderabad, Andhra PradeshIndia - 500 073

Tel :040 - 23741138 / 23743507 / 23754600
Fax: 040 - 23748752
E-mail: oslhyd@oceansparkle.com

Client Documentation

File Name	Actions
OSL_III_ESAP_June_30_2008.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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