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 PS5: Involuntary resettlement issues are not expected to arise in this project, as sites will not be developed if they would involve physical or economic displacement of people. 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 Tigo’s operations shall consider all relevant social and environmental risks and impacts, including issues covered in all IFC PSs.

This project involves the expansion, upgrade, and maintenance of Tigo operations. 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.

The proposed project will upon implementation of the specific agreed measures comply with IFC Performance Standards, IFC environmental, health and safety guidelines, and applicable rules and regulations from the Colombian Ministry of Environment, Ministry of Information Technologies and Communications, local municipalities, and other relevant regulatory bodies and authorities. The Company’s plans for environmental and social management are summarized as follows: Environmental, Health, Safety and Social Management Tigo uses some Millicom International environmental and social policies and procedures tailored to reflect local circumstances. Under IFC’s investment, Tigo will work further on adapting Millicom International environmental and social policies and procedures to local circumstances, as needed. All these policies and procedures are or will be in written form. They will include procedures for site selection, site construction, waste management, and human resources management. Tigo maps potential sites to be acquired or developed according to the need for signal transmission. Then the company or a contractor identifies and assesses risks and impacts relating to each potential site. For each potential site, Tigo or a contractor writes up a site survey report, which covers how all relevant environmental and social risks and impacts will be mitigated. These include visual and electromagnetic impacts and noise from generators in residential and commercial areas, or elsewhere according to applicable standards. Through its procedures for site selection, Tigo will practically always avoid acquiring or developing any site with sensitive environmental issues, or that would require physical or economic displacement of local community members. The company will always follow all processes and fulfill all requirements according to the timeframes required by local authorities to obtain all relevant permits for constructing or operating a tower, cable site, or retail operation. Colombian authorities have strict requirements for issuing permits, and have required that Tigo perform an environmental assessment at only one of its 2,716 sites prior to the issuance of a permit, in Barranquilla. Under IFC’s investment, potential leased sites for any new retail operations will be screened for life and fire safety issues, and Tigo will continuously ensure that adequate fire exits and fire extinguishers are available and operational. Tigo’s policies and procedures ensure that the company manages all relevant functions covered in IFC’s PS2 through PS8. Tigo employs a construction inspector who manages and monitors environmental and social issues with contractors, who are required to provide training to their employees as needed. Under IFC’s investment, Tigo will be required to add environmental and social terms as needed to its agreements with key contractors when any agreement comes up for renewal or rebidding. Tigo will always actively monitor compliance with these terms, and will consider terminating any contractor in the event of non-compliance. Labor and Working Conditions Tigo has 522 direct employees and uses about 3692 contracted employees. Detailed human resources policies and procedures are designed to ensure compliance with all applicable local labor laws and regulations. These include a workers’ rule book approved by the Ministry of Social Protection, and procedures to manage employee grievances. Tigo contracts with a risk insurance company to ensure compliance with applicable safety standards. This has helped the rate of accidents at Tigo to decrease yearly over the past four years. Annual safety reports show that Tigo significantly outperforms its competitors on major indicators of safety, through the use of induction and training programs that cover inter alia tower-climbing and personal employee protection, inspections, advisory committee meetings, regularly-scheduled maintenance activities, emergency response and business continuity programs, fire drills, ergonomic studies, and incident reporting. Tigo performs occasional staff surveys to ensure continuous improvement in its human resources procedures. It provides compensatory time off, and has procedures to ensure that salaries are paid on time. Tigo 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, Tigo employs appropriate measures for life and fire safety. Tigo makes commercially reasonable efforts to ensure that contractors’ employees who perform work at tower, cable, and retail 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 inclusion of appropriate terms in Requests For Proposal (RFPs) and monitoring of those terms. Pollution Prevention and Abatement Under IFC’s investment, Tigo will include conditions in its agreements with construction contractors and suppliers that cover pollution prevention, abatement, and mitigation measures for relevant impacts. These conditions will require compliance with local requirements for manufacturing, transportation, operations including hazardous materials management, and obtaining permits. Similar measures are also taken in the company own operations. Tigo has contracts with specialized companies in order to handle the disposal of batteries and waste materials. It also has an agreement with the Ministry of Environment in order to work together using the best practices for handsets disposal. Tigo installs backup generators with noise insulation. It uses battery power as backup for electricity needs at about half of its tower sites, and it is conducting pilot tests aimed at reducing the use of diesel-powered generators. For those sites that have generators, as a condition of IFC’s investment, Tigo will develop and implement an action plan to add secondary containment structures around fuel tanks as well as spill protection equipment. PS4: Community health, safety and security Tigo contracts armed security services from independent contractors for some of its operations. In the event that any grievance arises from local community members in relation to these services, such contractors will be required legally, and also contractually by Tigo, to address the situation and provide for appropriate resolution, consistent with PS4.

Tigo recognizes the importance of community engagement, and is committed to complying with IFC Performance Standards on disclosure and community engagement. Tigo has procedures for prior disclosure of the development of any new sites to local communities, as set forth in the current applicable regulation, emphasizing notification to the community about any future construction to be performed.  As a condition of IFC’s investment, Tigo will commit to maintain compliance of the current local regulation requirements, whereby at least one sign is posted at each planned construction site at least three days prior to construction. Tigo is committed to following up on any complaints from community members until they are resolved. If a substantial number of community members complain about the same issue, and circumstances indicate that a meeting for Tigo to engage with community members may be useful, then Tigo will organize such a meeting. Tigo will always provide information to community members on electromagnetic radiation from tower sites as needed, consistent with IFC’s Telecommunications Guidelines.

Erwin Duncan, CTO Colombia Móvil S.A. ESP 571-3303000 ext 1205 erwin.duncan@tigo.com.co