28005 - Comunicaciones Celulares S.A.

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Environmental & Social Review Summary

Project Number

28005

Company Name

Comunicaciones Celulares S.A.

Date ESRS Disclosed

May 22, 2009

Country

Guatemala

Region

Latin America and the Caribbean

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Dec 10, 2009
Signed : Dec 11, 2009
Invested : Dec 21, 2009

Sector

Mobile Telephony

Industry

Telecommunications and Technology

Department

WBG Digital and AI

Project Description

The project consists of a corporate loan for the expansion and upgrade of Comcel S.A.’s 2G and 3G mobile network throughout Guatemala, including rural areas of the country. Comcel S.A. is the largest mobile telephony operator in Guatemala, with 4.5 million subscribers and approximately 45% market share.

Overview of IFC's Scope of Review

The review of this project consisted of a visit by IFC staff to the project site, to meet with and interview Comcel management and to have a first-hand look at operational activities. IFC staff also appraised technical, environmental and social information submitted by Comcel, including:

- Technical specifications for site construction;
- Rollout process and Corporate Social Responsibility documentation; and
- Human resources policies and procedures.

E & S Project Categorization and Applicable Standard

IFC’s environmental and social due diligence indicates that the principal Performance Standards (PSs) to be applied to this investment are:

- PS1: Social and Environmental Assessment and Management Systems;
- PS2: Labor and Working Conditions;
- PS3: Pollution Prevention and Abatement; and
- PS4: Community Health, Safety and Security.

PS5: Involuntary resettlement issues are not expected to arise in this project, as sites will not be developed if they would require resettlement.
PS6: Biodiversity conservation and natural habitat issues are not expected to arise in this project, as sites are chosen only in already-developed areas.
PS7: Indigenous peoples issues are not expected to arise in this project, as no local community members around sites will be from peoples defined as indigenous under PS7.
PS8: Cultural heritage issues are not expected to arise in this project, as sites will not be developed where such issues would arise.

Nevertheless, a condition of IFC’s investment will be that Comcel’s operations shall consider all relevant social and environmental risks and impacts, including issues covered in all IFC PSs.

This project involves the development of cellular tower sites. The key issues associated with the project are environmental, health, safety, and social management; construction of towers; labor and working conditions (including occupational health and safety); pollution prevention and abatement, and community security. The nature of the Company’s operations is such that no major adverse environmental or social impacts are expected to result from the project, and that it will be possible to avoid or mitigate any limited adverse impacts that might result. As a result, it has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

Environmental and Social Mitigation Measures

The proposed project will upon implementation of the specific agreed measures comply with applicable standards including host country laws and regulations, IFC Performance Standards, and IFC environmental, health and safety guidelines. Comcel’s plans for environmental and social management are summarized as follows:

Environmental, Health, Safety and Social Management:

Comcel has adapted Millicom Group environmental and social policies and procedures to local circumstances, including procedures for site selection, site construction, waste management, and human resources management. These policies and procedures are in written form, and were being implemented well before IFC’s appraisal.

Comcel assesses risks and impacts relating to each potential tower site, and through its procedures for site selection, will avoid developing any site with sensitive environmental issues, or that would require physical or economic displacement of local community members. All relevant permits are obtained for each site.

Comcel’s policies and procedures will ensure that the company manages all relevant functions covered in IFC’s PS2 through PS8. Relevant environmental and social terms will be included in any agreements with contractors, and compliance with such terms will be monitored by Comcel.

Comcel has established a new, proactive Corporate Responsibility Program that has begun to implement initiatives in the areas of education, environmental protection, public health, poverty eradication, and disaster recovery. Comcel will consider merging responsibility for environmental and social management across its operations into its Corporate Responsibility Program.

Labor and Working Conditions

Comcel has 600 direct collaborators (i.e., workers), and 400 indirect collaborators who provide security, housekeeping, and sales. Detailed human resources policies and procedures are designed to ensure compliance with all applicable local labor laws and regulations. These policies and procedures promote the fair treatment, non-discrimination and equal opportunity of its collaborators, and include written procedures for handling grievances by collaborators. Recent surveys show satisfaction at work by 85% of Comcel collaboratorss, and Comcel has been ranked a the sixth best employer in Guatemala.

Comcel ensures that its collaborators are provided with appropriate personal protective equipment and health and safety training for the type of work in which they are engaged. For all of its offices, operational sites, switching centers, and retail outlets, Comcel employs appropriate measures for life and fire safety.

Retail operations are conducted through 60,000 points of sale. Vendors are typically not Comcel collaborators. Each one typically manages a small leased space, and not only sells products from other telecom companies, but often also sells various sundries.

Comcel will make commercially reasonable efforts to ensure that contractors’ employees who perform work related to core functions of Comcel for a substantial duration shall be provided a safe and healthy work environment, including appropriate training, protective clothing and equipment, and are not below the legal employment age.

Pollution Prevention and Abatement

Comcel will include relevant terms in agreements with contractors that cover pollution prevention and abatement. These terms shall require compliance with local requirements for manufacturing, transportation, operations including hazardous materials management, and obtaining permits. As a condition of IFC’s investment, Comcel will develop and implement an action plan – which it will reflect in its policies and procedures for site construction – to add secondary containment structures around fuel tanks as well as spill protection equipment at all Comcel facilities no later than the end of 2010.

The Company is developing an aggressive alternative energy program to roll out a network of solar panels that will power or partially power more than 60 of the company’s cell sites. This is expected to be the first telecom project financed by IFC that would finance the use of solar panels. The proposed use of solar panels can be expected to reduce impacts associated with generators and fuel tanks normally used in such a project.

Community Health, Safety and Security

Comcel engages security contractors who employ armed guards after performing background checks on candidates. The company will establish its own mechanism to receive and resolve any potential complaints from local community members on the use of force by any Comcel security services provider, and will ensure compliance with PS4.

The company will include terms in every security services contract to provide for a written procedure on the proportional use of force, and for training on the use of force to be provided to each guard on a regular basis. Comcel has committed to monitor compliance with such terms.

Stakeholder Engagement

Comcel recognizes has in place procedures for prior disclosure of the development of new tower sites to local communities 30 days before construction begins, and for resolving complaints or grievances. It employs a senior officer to work full time on disclosure and community engagement. Comcel is committed to complying with local codes and IFC Performance Standards on disclosure and community engagement.

**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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Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

Stakeholder Engagement

Stakeholder Engagement

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