28033 - Millicom DRC

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Environmental & Social Review Summary

Project Number

28033

Company Name

Tigo RDC - MIC Ltd

Date ESRS Disclosed

May 14, 2009

Country

Congo, Democratic Republic of

Region

Africa

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Sep 25, 2009
Signed : Sep 30, 2009
Invested : Jul 22, 2010

Sector

Mobile Telephony

Industry

Telecommunications and Technology

Department

WBG Digital and AI

Project Description

The project consists of the expansion of an operating mobile cellular telephone network in DRC, sponsored by Milicom International Corporation (“Millicom DRC” or the “Company”). The Company is planning an expansion project covering 2009-2011 to enhance its network capacity and geographical coverage. Total capital expenditures under this project are estimated at $285 million equivalent, including up to $20 million equivalent for the installation of solar panels. The company plans 300 tower sites to be built in all regions of DRC in the next five years.

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 Millicom DRC management and to have a first-hand look at operational activities. IFC staff also appraised technical, environmental and social information submitted by Millicom DRC, including:

- A supplier code of conduct;
- Human resources policies and procedures;
- Millicom position papers on environmental and social issues; and
- A list of Millicom DRC mobile cellular antennae tower sites.

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; and
- PS3: Pollution Prevention and Abatement.

PS4: Community health, safety and security issues are not expected to arise in this project, as the impacts of tower sites do not extend into communities (e.g., security guards do not carry guns).
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 Millicom DRC’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 employee and contractor occupational health and safety); and pollution prevention and abatement. 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. Millicom DRC’s plans for environmental and social management are summarized as follows:

Environmental, Health, Safety and Social Management

Millicom DRC has adapted Millicom Group environmental and social policies and procedures to local circumstances. These policies and procedures are in written form, and were being implemented well before IFC’s appraisal.

The Company DRC outsources construction of new tower sites to contractors that are asked to sign a supplier code of conduct that includes conditions requiring compliance with applicable standards on ethics and integrity, workers’ rights, workers’ protection, prohibition of child labor, environmental protection, and monitoring and reporting, including monitoring of compliance with the code of conduct. Environmental and social terms are included in contracts, with a provision for termination of a contract in the event of non-compliance. The Company monitors compliance with these terms.

Millicom DRC manages site selection and assessment using procedures that include providing contractors with technical site survey forms, which include sections for assessment of environmental and social issues, and for written procedures to resolve any issues. The Company avoids 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.

Millicom DRC’s policies and procedures will ensure that the Company manages all relevant functions covered in IFC’s PS2 through PS8.

Labor and Working Conditions

Millicom DRC has 360 direct employees and a sales force of 2224 indirect employees, projected to increase to 2700 by the end of 2009. 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 employees, and include written procedures for handling employee grievances. There is a possibility of retrenchment in some regions, and the Company commits to notifying IFC in advance if this happens and developing procedures that would comply with PS2.

Millicom DRC ensures that its employees 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, and switching centers, Millicom DRC employs appropriate measures for life and fire safety. When new employees are hired locally, they are provided training in safety measures.

Retail operations are conducted via a pyramid distribution system, whereby the Company employs representatives for different territories. The actual vendors are typically not Millicom DRC employees, and each one typically manages a small leased space, sometimes just a spot on a sidewalk under an umbrella, and sells products from multiple telecom companies. Yet Company representatives check identification cards of all vendors in order to avoid underage vendors, collecting data electronically which is then reviewed by Millicom.

Millicom DRC makes commercially reasonable efforts to ensure that contractors’ employees who perform work at tower sites shall be provided a safe and healthy work environment, including appropriate training, protective clothing and equipment, and are not below the legal employment age. This is done by asking contractors to sign a code of conduct, as well as by inclusion of terms in contracts and monitoring of those terms.

Pollution Prevention and Abatement

Millicom DRC includes conditions in its code of conduct with contractors that cover pollution prevention and abatement. These conditions require compliance with local requirements for manufacturing, transportation, operations including hazardous materials management, and obtaining permits.

The Company is developing an aggressive alternative energy program to roll out a network of solar panels that will power or partially power probably at least 60 of the Company’s tower sites by the end of 2010, and probably at least 175 sites by the end of 2012. 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.

As a condition of IFC’s investment, Millicom DRC will develop and implement an action plan to add secondary containment structures around fuel tanks as well as spill protection equipment at all Millicom DRC facilities no later than the end of 2010.

Stakeholder Engagement

Millicom DRC recognizes the importance of community engagement. The Company 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. The Company signed a voluntary convention in November 2008 that commits it not to develop sites near any schools, and it has followed through with this commitment. Millicom DRC 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.

Projects

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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