The key environmental and social issues for this project include the following:
- Corporate environmental, health, and safety (EHS) management system
- EHS management for both construction and operation of the new phosphate jetty
- Road transportation safety of phosphate rocks from mines to terminal
- Coral preservation at the proposed jetty site and coral rehabilitation at the old phosphate jetty site.
JPMC 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 - the host country laws and regulations and the IFC Environment and Social Performance Standards and the World Bank Group (WBG) environmental, health and safety guidelines. The information about how these potential impacts will be addressed by JPMC is summarized in the paragraphs that follow. Further information is provided in the attached ESAP, which is agreed upon by IFC and JPMC and will address the compliance gaps with IFC’s requirements.
1. Social and Environmental Assessment and Management Systems
Land and natural environment: The proposed new JPMC terminal consists of a truck/train unloading facility, phosphate storage facility, a fully closed pipe conveyor, and a new jetty. The unloading and storage facilities are located inside the JPMC chemical complex in Aqaba, Jordan, and the new jetty is located to the north of the existing industrial jetty and to the south of Arab gas pipeline at Aqaba south port. There are corals along the 26 km Jordan coastline.
Environmental and Social Assessment: As noted, the JPMC terminal is part of a larger Aqaba ports relocation and development project being carried out under the direction of ADC. The current phosphate jetty at the north ports area near Aqaba city will be demolished according to ADC’s Master Plan for the entire Aqaba area and in accordance with requirements set forth by ADC and the Aqaba Special Economic Zone Authority (ASEZA), the regulator. ADC contracted an external party to prepare an environment impact statement (EIS) for the entire ports relocation project. Importantly, Jordan’s Marine Science Station (MSS) has been closely involved with the assessment of marine habitat in the entirety of the Southern Industrial Zone. IFC’s review of the EIS and the Master Plans (2006 and 2007) for the overall ports relocation project confirms that appropriate approaches have been considered to design and implement the project so as to minimize damage to the marine environment including coral, and that the proposed mitigation methods meet industrial good practices.
As indicated in the ESAP, JPMC will conduct an additional environmental impact assessment activities to establish detailed environmental baseline information for the marine jetty area, identify the environmental risks for both construction and operation phases, and propose appropriate mitigation methods to ensure the project meet the requirements of IFC’s Performance Standards, World Bank Group (WBG) EHS guidelines, and in accordance with the environmental mitigation and monitoring framework established by ADC.
Environmental, health, and safety (EHS) management and organization: JPMC has a corporate EHS management system. The corporate EHS office is located at the chemical complex in Aqaba, responsible for coordinating the Company’s overall EHS performance and reporting directly to corporate management. There are EHS managers/coordinators at each operational unit. The JPMC downstream chemical complex is certified by both ISO 14001 and OHSAS 18001. In addition, JPMC is currently working on ISO and OHSAS certifications for its three phosphate mines in Jordan.
Training, monitoring, and reporting: JPMC has an established program to provide necessary EHS training for all its employees related to their operations. JPMC conducts routine environmental, health and safety monitoring for its current operations, and also contracts external experts to monitor the marine environment, including the corals, at the existing jetty in Aqaba. JPMC maintains its environmental and social performance records through its internal reporting structure and reports to local authorities. Upon request, JPMC also discloses its EHS operation data to various civil societies.
2. Labor and Working Conditions
Human Resources Policy and Management: JPMC has in place a Human Resources (HR) policy that specifies the terms of employment and working conditions for all JPMC staff. These include procedures for hiring and recruiting, probation, training, performance review, promotion, insurance, salary and compensation, resignation, lay-off and firing, leave and vacation, and retiring. The human resources function is a corporate function and all the employees have access to these policies and rules. The compensation levels at JPMC are among the best in Jordan industries. All the employees have health insurance. There are established procedures for employees to report their grievances within the management structure. The labor union also works as an alternative grievance mechanism.
Worker’s Organization: There is one labor union in JPMC, which is part of a nationwide union for mining and chemical industries. All employees at JPMC are union members. The union represents employees for salary and benefit negotiation every year. There has been no strike or union unrest at any JPMC facility in the past 10 years.
Non-Discrimination and Equal Opportunity: No discrimination procedure or practice was identified during the appraisal. Hiring and promotion are merit-based, and JPMC prefers to hire local employees whenever appropriately qualified candidates can be identified. As stated in the ESAP, JPMC has made it a corporate priority to hire female employees wherever possible.
Retrenchment: Retrenchment is not expected for this project. The company will hire approximately 500 contractor labors during three years construction period, and hire 50 new employees for the operation.
Protecting the Work Force: JPMC complies with all national labor laws and does not hire workers below the age of 18.
Occupational health and safety (OHS): The EHS department leads the OHS works at JPMC. Operational safety is highly emphasized at all JPMC facilities. There are effective OHS procedures and adequate personal protection equipment for each position at the existing jetty operations, which are implemented strictly. The Company conducts routine OHS trainings including annual refreshers for its employees. All employees undergo annual physical check-ups. In accordance with the ESAP, JPMC will monitor fugitive dust levels at the phosphate storage facility and jetty once the new terminal is put into operation. JPMC will also start monitoring and reporting on OHS statistical trends for the terminal, chemical complex, and mine operations.
3. Pollution Prevention and Abatement
Environmental Compliances: The major environmental compliance issue for the terminal operation will be fugitive dust emissions. According to the master plan proposed by JPMC, unloading of phosphate at the storage area will take place inside closed dump pits equipped with dust suppression grids, dust control devices, and electronically controlled doors. All delivery trucks will be vacuum cleaned after unloading of phosphate. Transportation of phosphate from the unloading/storage area to the jetty will be through fully closed pipe conveyors. Ship loaders are equipped with covered belt conveyors where possible and dust controlled loading bellows. Based on the design, it is expected that fugitive dust emissions will be minimized effectively. As required in the ESAP, JPMC will monitor ambient particulate matter and seawater quality during the operation to ensure the operation meet WBG EHS guideline requirements. The existing industrial jetty will also be fully renovated with the same technologies to control dust and fugitive emissions.
Wastewater and Solid wastes: There is no manufacturing process for this project. Discharges from cleaning and sanitary wastewater will be treated at a wastewater treatment unit in the JPMC chemical complex. Treated water will be reused in the phosphoric acid manufacturing process at the chemical complex. Solid waste will be transferred to licensed government contractors for disposal.
Fire prevention and emergency response: JPMC has a dedicated fire fighting brigade with two fire trucks at its chemical complex, which will be used for fire fighting and emergence response (ER) of the terminal project as well. There is one onsite clinic for routine medical service and ER. JPMC conducts routine internal fire/ER drills and conducts one joint fire/ER drills with local civil defense agency.
Greenhouse gases (GHG): The only energy requirement for the terminal operation is electricity, which will be supplied from the national grid. The JPMC terminal project will consume 8,758.4 MWhr per year and its use of electricity will generate approximately 6,900 ton/y GHG.
Associated Facility: JPMC owns three phosphate mines in Jordan. Since the terminal is designed for use as a phosphate facility, the phosphate mines are considered associated facilities for this project. All three mines are located in the desert with no communities or sensitive ecosystems nearby. The major concerns are operation safety and dense dusts. There are strict safety procedures for mine operations, and there has been no serious accident in the past few years. During appraisal, the personal protection equipment (PPE) was found to be adequate and enforced strictly, with the exception of safety goggles and dust masks. As stated in the ESAP, JPMC will implement strict PPE procedures and all field staff at mine will be required to wear masks and goggles, in addition to other requisite PPE.
4. Community Health, Safety, and Security
Community safety and security: There are no communities near any of JPMC’s operations. However, although the road conditions throughout Jordan are fairly good, the trucking transportation of phosphate from mines to the terminal may pose certain safety and environment impacts to the residents along the transportation routes. As required by the ESAP, JPMC is committed to only contract with transportation companies that have defensive driving programs, acceptable safe driving records, and sufficient emergency response methods.
Security personnel requirement: JPMC has its own unarmed security guards for routine ID checks at the gates and security monitoring. In addition, it contracts armed public security forces for the security patrols of mines, chemical complex, and terminal. There are documented procedures in place for the use of firearms. There had been no security incident in the past few years.
5. Biodiversity Conservation and Sustainable Natural Resource Management
Corals exist along the entirety of the 26 km coastline in Jordan. Corals with the highest biodiversity value are located in the Aqaba Marine Park and in Dirreh Bay, situated to the north and to the south, respectively, of the proposed phosphate jetty. Some corals along Jordan’s coastline are well-preserved, while others have been damaged by industrial activities and/or port operations over the past 30 years. Working in cooperation with the ADC, the Marine Science Station (MSS), an independent research institution affiliated with the University of Jordan and Yarmouk University, has conducted a survey and other assessments of corals in the Southern Industrial Zone as part of the overall port relocation project.
The proposed JPMC jetty is adjacent to the north of the existing industrial jetty, in an area that is characterized by significantly damaged marine habitat due to chemicals, solid waste and sediment accumulation over the past 30 years. The marine habitat in the immediate vicinity of the phosphate jetty contains batches of coral aggregates at shallow depths and a coral garden in the deeper depths (starting around -10 m). The coverage of hard corals vary between less than 40 percent to 90 percent (depending on depth), however corals at shallower depths (within - 15 m contour line) are of lower biodiversity value, especially when considering existing damage caused by the construction of the Arab gas pipeline in 2003, located adjacent to the north of the proposed jetty. Based on the MSS coral survey, the coral habitat at the proposed JPMC jetty area is categorized as largely modified habitat with patches of natural coral habitat potentially located at ~10 m depth or greater. The jetty itself will be situated approximately along the 15 m contour line.
One of the most important mitigation measures implemented as part of JPMC activities is avoidance. As mentioned above, the jetty itself will be located in largely modified habitat, and there will be no dredging in the jetty construction. Furthermore, JPMC will contract external consultants to conduct detailed coral mapping during the additional environmental and social impact assessment with special attention to corals in the water deeper than 10 meters. If deep water hard corals of importance to marine biodiversity are identified, JPMC will work with MSS to relocate these patches of ‘natural habitat’ to the Aqaba Marine Park or to some other appropriate area, as necessary and on-site rehabilitation and post-construction monitoring of coral habitat will take place. External consultants will also help JPMC to propose coral protection mitigation methods for both construction and operations. It should be noted that as part of ADC’s overall port development planning and management, the MSS aims to achieve “no net loss” (and in some instances “net positive gain”) of Aqaba’s coral resources. Both the ADC and the MSS work in close coordination with the ASEZA, which is a financially and administratively autonomous governmental agency responsible for the management, regulation, and the development of the Aqaba Special Economic Zone (ASEZ). Aqaba’s coral resources are highly valued by the ASEZA for their intrinsic biodiversity value and their tourism potential; hence the management of potential project-related impacts is a high priority of both the project and the government of Jordan. The MSS has identified mitigation, management and monitoring plans for the entire Southern Industrial Site.
As required in the ESAP, JPMC will consult with MSS to develop a coral conservation plan for the proposed jetty area in south port, and to assist the institutions responsible for coral rehabilitation works at the old phosphate jetty area in the north port. Furthermore, as the habitat of the proposed jetty is largely modified, JPMC will work with the MSS to identify opportunities to enhance coral habitat and protect and conserve marine biodiversity along Aqaba’s coastline in line with IFC’s client requirements for modified habitat. Regarding potential patches of natural habitat, the above mentioned mitigation measures are sufficient to ensure that JPMC will not significantly convert or degrade such habitat and, in cooperation with the MSS, will aim to achieve no net loss of such habitat along Jordan’s coastline.
