27215 - Waterhealth India Private Limited

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Environmental & Social Review Summary

Project Number

27215

Company Name

WATERHEALTH INDIA PRIVATE LIMITED

Date ESRS Disclosed

Jul 29, 2008

Country

India

Region

South Asia

Last Updated Date

Feb 28, 2026

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jan 30, 2009
Signed : Feb 13, 2009
Invested : Feb 13, 2009

Sector

Water and Wastewater Utilities

Industry

Infrastructure

Department

Regional Industry - INF Asia & Pac

Project Description

Waterhealth India Private Limited (WIPL or the company), a wholly owned subsidiary of WaterHealth International Inc. (WHI) currently provides distributed water services through its retail outlets or Water Centers (WCs) spread across approximately 150 villages in the State of Andhra Pradesh in India.

Each WC consists of equipment assets supplied by WIPL, which WIPL procures from a set of its approved vendors. WIPL, depending on the projected demand for a WC, typically installs either 65 kiloliters per day capacity (treated water) or 21 kiloliters per day capacity equipments. These assets are community-owned and operated, and provide potable water to the community. Typically, the land is provided by the village panchayat (village level elected local self government institution) or by a donor, who also provide the equity contribution for the WCs. The operations of each WC are entirely sustained through affordable user fees generated from sales of treated water, which includes cost of employment and wages of operators. WIPL in addition to the equipment also provides:

- technical skills and training to operators;
- maintenance support for equipment;
- oversight on adherence to quality system; and
- assurance on product/water quality.

A typical water center draws water from a village pond, which has been earmarked by the village panchayat for drinking water purposes. The water is pumped from the pond to the WC through buried HDPE pipes. The water treatment and disinfection involves filtration through pressure sand filter, activated carbon filter, cartridge filters of 5 and 1 micron size, activated carbon cartridge filter and UV irradiation (for disinfection). Treated water is stored in stainless steel tanks and dispensed through a tap manifold.

IFC has been approached for a loan to part finance increase in the number of WCs from the present 150 to more than 800 in Andhra Pradesh and other states of India.

Overview of IFC's Scope of Review

IFC’s review of this investment consisted of appraising technical, environmental and social information made available by Waterhealth India Private Limited (WIPL or the company) including the company’s:

- Business plans;
- Quality system manual and standard operating procedures;
- Human Resource (HR) policies;
- sample product/treated water quality test reports; and
- sample material safety data sheets.

The appraisal team also interviewed WIPL’s corporate management, human resources professionals and operators at water centers. The appraisal also included visits by IFC staff to two operational water centers located in villages Kavvali and Pulla in Eluru and West Godavari districts respectively both in Andhra Pradesh state of India.

E & S Project Categorization and Applicable Standard

IFC’s environmental and social due diligence indicates that this project will have impacts which must be managed in a manner consistent with the following Performance Standards (PS):

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

The project equipment, plants and infrastructure meet good industry practices and the Project is not expected to exacerbate community heath, safety and security risks or community exposure to disease either due to changes in land/hydrologic or other terrestrial/air quality/hydrologic regimes or due to influx of large pool of migrant laborers. Armed security guards are not deployed at the WCs or by the company at other locations. (PS4). Typically, the land (approximately 15 x 25 m) is provided by a donor or by the Panchayat from land available with it, so no involuntary resettlement (physical or economic) is expected as a result (PS5). Similarly, the WCs are located inside villages and do not have significant emissions and discharges, hence impacts on biodiversity are not expected. For the purposes of PS7, the WCs are not expected to impact indigenous peoples (i.e., scheduled tribes as per Indian law) or associated lands or resources on which indigenous peoples may be dependent. Similarly, the water centers are not expected to impact any cultural heritage (PS8) including sites, structures, natural relief or resources of cultural importance for the communities.

The proposed investment in WIPL’s program to increase the number of community owned water centers 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. Further, it is possible to readily design and implement engineering and management measures to mitigate the relatively limited impacts during both construction and operations.

Environmental and Social Mitigation Measures

The company has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements including: the host country laws and regulations; and IFC’s Performance Standards. The information about how these potential impacts will be addressed by the Company is summarized in the paragraphs that follow. Further information is provided in the attached documentation.

- PS1: Social and Environmental Assessment and Management System

WIPL’s management proactively addresses social, environmental, occupational health and safety (SEHS) aspects associated with its operations. The company has put in place a quality management system (QMS) which supports ISO 9001:2000 standards. The company has in place an environment, health and safety policy and the standard operating procedures (SOPs) for operation and maintenance (O&M) incorporates safety provisions. WIPL’s QMS includes SOPs for:

- technical services (O&M) including preventive and scheduled maintenance programs;
- personnel health and hygiene;
- marketing;
- procurement;
- calibration and laboratory/testing;
- training need analysis and training of employees;
- periodic monitoring and assessment of product quality and performance;
- internal audits and implementation of corrective action;
- reporting to senior management; and
- management review of the management system.

The company will build upon the existing QMS, to expand it into an integrated quality, social, environmental, health and safety management system (IMS), with IFC’s Performance Standards appropriately incorporated. The company will develop and implement formal SOPs in accordance with the Performance Standards particularly in the context of:

-obtaining applicable registrations, permits, consents and authorizations for both WIPL and WC operations;
- mitigating impacts associated with construction and discharges during operation; and
- ensuring that vendors approved for equipment and consumables purchase meet WIPL’s social and environmental standards.

WIPL will employ in-house one fulltime qualified professional, for oversight of social, environmental, occupational health and safety aspects across all of its operations.

- PS2: Labor and Working Conditions

WIPL has employees on its rolls that are engaged by the company directly for O&M/construction; and contract workers have been engaged by the community as operators of the WCs. Typically, there are two operators at each WC of 65 klpd and one operator at WC of 21 klpd capacity. The operators engaged at each WC are usually from the same village. While the operators are engaged by the community (panchayat), WIPL is involved in their selection and provides intensive training to them including on safety, health and environment, to ensure that the WCs are operated in accordance with WIPL’s policies and procedures. The company has HR Policies and procedures, which include those for: recruitment, equal opportunity, non discrimination, training, leaves, grievance redress, retirement/separation, personnel health and hygiene, employee welfare and benefits. HR department is responsible for communicating the HR policies to employees. The terms of employment and working conditions are also communicated through the appointment letter/agreement. WPIL ensures that all of its employees and non employee workers (operators) engaged in process/production areas undergo periodic health check up. However, there are opportunities for further improving the HR procedures particularly those pertaining to:

- employee grievance redress, to ensure confidentiality and non retribution;
- disciplinary action/procedure; adherence to PS2 provisions as regards non employee workers/contract workers; and ensuring that the approved equipment and consumables vendors are in compliance with Indian labor laws.

WIPL’s technical services (O&M) SOPs include appropriate health and safety requirements. However, availability of personal protective equipment (PPE) at WCs needs to be improved. Further, while material safety data sheet (MSDS) for washing chemical was available, the company will:

- display these in the local language at the WCs; and
- ensure that antidotes in case of accidental exposure are readily available at each WC.

The employees and operators are trained in health and safety aspects of relevance to the operations. The company will as part of the IMS, implement SOPs to ensure that:

- occupational health and safety in design and construction of WCs meets IFC Performance Standards; and
- accidents/incidents during construction and operations are recorded, reported, monitored, investigated and corrective action implemented.
- PS3: Pollution Prevention and Abatement

Limited and temporary impact on ambient conditions (air quality and noise) may be expected during construction phase. The company will implement mitigation measures including dust suppression and management of pollution from vehicular and equipment emissions to minimize these impacts. Electricity is sourced from the grid (connection obtained by the village panchayat) and there are no emissions to air during operation stage. The company has implemented a QMS to ensure that the product meets Indian potable water quality standards. The product/treated water is tested every month and results displayed at each WC. Further, the company does more limited strip tests of the water on a daily basis. The company will:

- review and further strengthen its water quality monitoring protocol; and
- implement procedures to display the treated water testing/monitoring results in the relevant local language at each WC.

The company provides water cans to villagers who register to offtake water from the WC. Further, the company has procedures in place to ensure that these cans are periodically cleaned, with a cleaning chemical, to minimize risk of water contamination in the can. Wastewater generated in the process includes:

- treatment plant back wash water;
- raw water tank cleaning and settling discharge (after alum addition to raw water); (c) chlorine/hypo based sanitization wash/wastewater; and
- can and tank washing wastewater.

The wastewater at some locations, is treated in a settling tank and the overflow used on WC premises for irrigation/ horticulture. At other locations, the wastewater is discharged through the village drain. The company will undertake a benchmark testing of the wastewater at a few sample locations to assess adherence to IFC Performance Standard requirements, and if required implement appropriate mitigation measures to meet the Performance Standards. The WC’s draw water from village ponds or other local water sources that are earmarked for drinking water purposes and with due approvals from the panchayat. Material impact on water resources is not expected on account of the project.

The company has procedures in place for appropriate handling and storage of the washing agent (a hydrogen peroxide and acetic acid based agent). The company will put in place a procedure, in accordance with Performance Standards, for disposal of used/spent activated carbon, sand and other filter media through authorized entities only. Further, the company will implement measures to ensure that hazardous material (chlorine/hypo, paints, lubricants and oils etc) which are brought to the WC site during construction and operation; and hazardous wastes (used/waste left over paint, paint and oil soaked rags/material, empty oil/paint drums/carbuoys, filters etc.) generated at site (during construction) are:

- stored under segregation and containment;
- handled/used with appropriate care and personal protective equipment; and
- disposed off through entities authorized to handle and dispose hazardous wastes.

Stakeholder Engagement

The project, by virtue of its nature, involves extensive community engagement since:

- community is the owner of each WC; and
- community is the beneficiary/client group for the WCs.

The company and its partners (local NGOs), engage with the community at multiple levels. To obtain initial buy in/motivation of the community for starting a WC project, the company (and its NGO partners) engage with the community leaders and elected local self government institution, the panchayat. The panchayat also is often the custodian of village resources and makes available land for setting up of WC besides enabling access to community owned water resources. In view of the fact that local community is also the client group for the WCs, the company is in the process of implementing an extensive education and awareness program to increase the number of households seeking to use the WC’s treated water. The company will however also implement a formal procedure to receive and respond to community concerns and grievances. The company will display this community grievance redress procedure in the relevant local language at each WC.

The company will locally disclose, at its corporate office (location details provided below) and on its website (www.waterhealth.com), a document summarizing the measures WIPL 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:

Sudesh Menon
Waterhealth India Private Limited
206, 1-8-301, Ashok MyHome Chambers,
S.P. Road, Secunderabad-500 003
Andhra Pradesh, India

Telephone: +91 - 40 - 2789 0307/08/09
Fax: +91 - 40 - 2789 0309
E-mail: smenon@waterhealth.com

Client Documentation

File Name	Actions
Environment and Social Action Plan.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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