The Company has presented information on its planned policies and practices that will seek to address environmental and social risks and impacts to ensure that the proposed project will, upon implementation of specific additional agreed measures, comply with host country laws and regulations and the IFC Performance Standards on Social and Environment Sustainability. Findings of the IFC’s review and conclusions are summarized in the paragraphs below. Additional actions to be undertaken by the Company are listed in the attached Supplemental Environmental and Social Action Plan (“SESAP”), which will be made conditions of IFC’s investment.
PS1: SOCIAL AND ENVIRONMENTAL ASSESSMENT AND MANAGEMENT SYSTEMS
The Company commissioned Inros Lackner AG, who worked in collaboration with local resources to undertake the ESIA, developed for this Project. As required under Togolese Law, the draft ESIA, completed in February 2010, is comprehensive, includes the consultation process with the Project Affected People (“PAP”), and proposes steps to mitigate potential environmental and social impacts. The final ESIA is in the process of being revised following input from the public consultation and will then be resubmitted to the Environmental Ministry. The final ESIA will be disclosed by both IFC and the Company.
The Company’s team of Environmental, Health, Safety and Security (“EHSS”) professionals will be led by an EHSS Manager, who will report directly to the General Manager and who will ensure implementation of the Environmental and Social Management Systems (“ESMS”). TIL’s management team overseeing the implementation of the project comprises a broad range of staff with experience in large infrastructure implementation and in container terminal start-ups, both in the European and West African context. A comprehensive ESMS will be developed for the Project, using the experience available within TIL’s organization. The ESMS will take into account the Environmental and Social Action Plan (“ESAP”) outlined in the ESIA, identifying the various management programs that will need to be developed and implemented during both the construction and operational phases of the Project, in order to ensure that the Project is undertaken in a manner consistent with host country laws and IFC’s Performance Standards. The key E&S issues to be addressed by the management programs include: (i) transport and disposal of dredge spoil; (ii) storage, handling and disposal of raw material, fuel, chemicals, and waste from construction and operations; (iii) air emissions management; (iv) effluent treatment and discharge; (v) occupational health, safety and security; (vi) staff and contractor training; (vii) spill prevention and protection of marine resources; (viii) vessels waste management; (ix) compliance with permitting and certification requirements, and international maritime conventions such as MARPOL, and SOLAS; (x) contractors’ and subcontractors’ compliance requirements and auditing (particularly working conditions and occupational health and safety issues); (xi) fire protection and Emergency Preparedness and Response (EPR); (xii) monitoring of the implementation of the Resettlement Action Plans; (xiii) community engagement and grievance mechanism; (xiv) community health and safety including security control of pedestrians access to site; and (xv) monitoring and reporting on E&S performance. The Company will retain an independent third party expert to verify its monitoring information.
PS2: LABOUR AND WORKING CONDITIONS
As part of this investment, the Company will develop a Human Resources Policy and an Employee Handbook, to ensure compliance with the requirements of this Performance Standard, and in compliance with the national labor and employment laws. Although the legal employment age in Togo is 18, the Company may occasionally hire interns that are less than 18 years old. Prior to employment, potential candidates must present an identification card. The Project at the beginning of operations, will have approximately 385 full time employees, who will mainly be operational and administrative staff, and 100 stevedores from Société de Manutention et d’Opération Portuaire (“SMOP”), which is the Stevedores union. At full capacity, the Project will have 509 direct employees (100 white collar, 409 blue collar) and will employ a further 158 stevedores. The Company will sign an employment contract with each employee, which will contain terms and conditions of their employment (such as duration of the contract; job title and terms of reference; wages and benefits; hours of work; overtime arrangements and compensation; and probation period). Temporary workers should also be provided with an employment contract outlining, at a minimum, their contact information and conditions of employment. LCT is committed to paying its employees above the minimum wage set in Togo.
The Employee Handbook will outline the employees’ rights under national labor and employment laws, including the right to freedom of association, compensation system including overtime, working conditions and terms of employment, holidays, sick leave, maternity and other type of leave, insurance benefit, access to training, performance evaluation system and promotion, anti-harassment policy, termination of employment, retirement, grievance and feedback mechanism, and disciplinary action. Furthermore, the Company will practice non discrimination with regards to the aforementioned matters. Togo has a social security system called “La Caisse Nationale de Sécurité Sociale” (“CNSS”) to which employees and the Company contribute. In addition to the CNSS, the Company will provide medical insurance for its own staff and their families. The statute for dockworkers in the port is currently being established by all actors concerned. It is likely that part of the labour on the terminal will need to be recruited among these dockworkers. Recruitment of dockworkers shall of course be in accordance with law and regulations in force at the time of entering into operation of the facility. LCT intends to use best industry practice in terms of human resources and other activities. A full time Human Resources Administrator will be recruited in 2012 to coincide with the Project ramping up its operation.
Training is a very important component of the Project; the organizational chart includes a person in charge of training. Each employee will be trained on (i) health, safety and security; (ii) code of conduct; and (iii) International Ship and Port Security (ISPS) guidelines. For the operators of the container handling equipment, the Company shall adopt a training program that will include technical training using simulators and on-the job training at TIL’s other facilities.
The Company will begin construction of the spur groin between end of 2010 and early 2011. Towards mid 2011, construction of the main terminal infrastructure is expected to start, extending over a timeframe of approximately 2 years. Over this period approximately 1,200 jobs will be created, most of which will be filled by locals and, if the needed skill is not available, then by people within the region. There will be no construction workers’ camp. The Company will develop a contractor screening mechanism to assist in undertaking its supply chain due diligence. Furthermore, the Company will build local capacity through a training program. LCT will ensure that its Contractors’ site workers are provide with and are wearing personal protective equipment (“PPE”), such as boots, hard hats, masks, goggles, gloves, vests, and/or ear plugs, as would be relevant to the activity undertaken. LCT’s Project Director and EHSS team will exercise rigor to ensure compliance in the use of PPE.
Designated staff will be trained in fire safety and spill response. Fire extinguishers, hydrants and pumps will be readily available at the construction site and at LCT offices. Emergency plans and drawings should be available and mock drills for fire fighting and spill response undertaken regularly. All fire equipment will be tested regularly by a third party firm.
PS3: POLLUTION PREVENTION AND ABATEMENT
The Terminal will run parallel to the existing terminal basin and will be able to accommodate 11,300 TEU vessels. Although maintenance dredging of the quay is the responsibility of the Company, only minor dredging in the future will be needed as very little sediment is expected to be deposited.
The ESIA raises several potential environmental and social impacts from both construction as well as operation activities, and has outlined a number of mitigation measures to avoid or minimize these impacts. The key pollution prevention and abatement aspects from the Project include:
Water quality: the impact of certain construction activities, such as dredging, may result in a temporary increase of sea water turbidity levels; dredging spoil will be disposed offshore, as the ESIA indicates low level contamination of sediments, a criteria for offshore disposal. The exact disposal location will be designated by the Port Authority and the Ministry of Environment. The construction works include the construction of a breakwater extension (spur groin), which should reduce the frequency of future dredging activities. The monitoring program should include water quality monitoring of suspended solids and turbidity before, during, and after dredging operations. .
Air quality: air quality control from soot, dust, sulfur dioxide, nitrogen dioxide, etc., generated from construction work, handling of dry bulk cargo, road traffic, and operation of land equipments such as gantry cranes, forklifts, trucks which run on diesel, and the onsite refueling station. The ESMS will include programs to ensure that equipment is regularly maintained, avoiding excess fumes from exhausts, and to minimize dust. The use of state-of-the-art container handling equipment should result in a reduced impact on air quality compared to today’s container handling operations.
Solid and waste management: solid waste will be disposed of in a municipal landfill, and the Company is committed to undertaking a recycling initiative. Waste oil from vehicle maintenance and other activities will be sent to a third party, licensed waste contractor. The Company indicated that there is no local capacity to treat this type of waste, and that it is likely that it will either have to be shipped to Ghana, Western Europe or another destination for treatment.
Liquid Waste Management: a storm water drainage system will be designed allowing surface run-off water to pass through oil/water separators prior to discharge into the port basin. Outlets to the basin shall be closable. Terminal waste water from the office buildings shall be collected and treated in a septic tank with 3 compartments. Liquids will be drained-off to buried pipes discharging into the port basin and solids shall be removed at regular intervals. Waste water from the workshop, fuel station and washing bay shall pass dedicated separators with run-off to the drainage system.
Hazardous materials (such as flammable gases and liquids, corrosives, oxidizing substances etc): the Terminal design indicates a dedicated and separate area for the storage of dangerous products. The area will have a secondary containment in compliance with the requirements of the International Maritime Organization - International Convention for the Prevention of Pollution from Ships”.
Soil and groundwater contamination: The refueling station will be equipped with above ground storage tanks, which will prevent soil and ground water pollution and reduce the risk of explosions. Use of underground storage tanks is not anticipated.
Noise: noise from increasing vessel traffic and slightly increased road traffic will not be significant in the short and medium terms as most of the truck traffic will consist of diverted traffic from the existing port to the new one. Noise from cargo handling and generators will also be addressed.
Emergency Preparedness and Response: the Company will develop oil and chemical spill contingency plan and procedures, as well as a disaster management plan. The Company will put in place an EPR Action Plan that is consistent with the International Convention for Prevention of the Pollution from Ships - MARPOL 73/78 and will be consistent with IMO guidelines. Mock drills will be undertaken regularly. The Company will put in place procedures and train an EPR team to ensure quick isolation/capture/minimization of incidents such as a fire or the accidental release of chemicals and petroleum products. .
The proposed mitigation measures in the ESIA for pre-construction, construction, and post- construction phases will be incorporated into contractors’ environmental management plans. The mitigation measures for the operational phase will be incorporated into the Company’s ESMS.
The Togolese State is responsible for supplying the Company with its energy and water needs. Electricity will mainly be sourced from the grid. However, as peak demand levels up to 20 MW are needed, with steep rates of change of the power demand. The Company is therefore studying to supplement its energy needs with a certain level of auto-production, combining conventional diesel generators with renewable sources. The existing port is in the process of building a water tower (height of 40 m and a volume of 650 m3) as well as a deep well to meet the Port’s water needs. The Company will be connected to this new network.
The Company is considering the use of renewal energy features, such as: (i) photovoltaic panels to reduce grid consumption; (ii) hybrid RTGs to reduce fuel consumption and air emissions; (iii) treated/sea water for toilet flushing to reduce water usage; (iv) sea water to pre-cool the air for air conditioning to save energy. Furthermore, the Company will explore opportunities to recycle waste.
PS4: COMMUNITY HEALTH SAFETY AND SECURITY
The Project is located in a commercial-industrial area immediately west of the existing port, and the closest urban population is located 200 m away from the entrance of the port. The anticipated impacts on the communities are expected to be minimal as the port operation will not contribute to a significant increase in road traffic in the medium term. The Company indicated that in the short to medium term there will be approximately 200 trucks redirected daily to the new port from the existing port and approximately an additional 200 in the long run, once there is increased distribution into the regional market. The Company will establish awareness campaigns to motivate transporters to adopt defensive driving principles.
As the Togolese coast is not home to rich fisheries, the strip closest to the coast is not much frequented by artisanal fishing activities and therefore the risk of accident with large ships should be minimal.
There will be a small influx of construction workers from nearby countries (e.g., Ghana and Benin) as not all positions can be filled locally. The hiring process will need to be carefully managed to ensure that local communities are given priority employment where there is a skill set – job match. The influx of workers might create opportunities for local communities to earn rental income and may be beneficial to small food vendors around the port area who will have a significant increase in their customer base.
The Company will source security services from a third party licensed firm and will undertake due diligence on the firm prior to hiring. The firm will be expected to screen its security personnel’s past record and train them in fire arms handling, human rights principles, and security incident investigation. The Company will incorporate in its contract with the firm the requirements of the IFC Performance Standards with respect to security. The Company is committed to investigate any credible allegation of unlawful and/or abusive acts by the security providers, and will urge the Port Authority to take appropriate action within their authority.
PS5: LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT
The concession covers an area of 53 hectares, with a possible future expansion into an additional 40 hectares. Under the terms of the concession, the Port Authority of Lomé (the PAL) is responsible for delivering the Project site to the Company free of any encroachment.
Market gardeners (‘maraichers’) and sand miners are currently using the concession site and will be displaced. Currently 175 people (105 men and 70 women) use the site for agricultural purposes, according to the latest census carried out in 2010. In addition, there is a sand mining operation west of the Project site. It comprises 1,494 people, among who sand miners and truckers who dig and haul sand that is used for construction, but also vendors and buyers. Both the market gardeners and the sand miners will have to be displaced from the concession area.
The PAL is responsible for the compensation of the market gardeners, but has to coordinate with the Ministry of Mining and Energy for addressing the displacement of the sand miners. In the case of the market gardeners, the responsibility falls on the PAL because the site falls within port territory. However, because the sand miners are tolerated (yet unauthorized) by the Ministry of Mines to carry out their activities, an alternative arrangement for them was sought through that Ministry. Two separate resettlement action plans have, thus, been prepared. Despite the fact that the responsibility for these resettlements lie with the authorities, the Company has played a pivotal role in managing the affected people engagement process and coordination between the PAL, the Ministry of Mining and Energy and the Ministry of Environment. The Company has been seeking to ensure that the PAL and the Ministry of Mines are developing these plans in a manner consistent with the provisions of PS 5 covering government-led resettlements.
Market gardening is the main commercial activity on the site and employs 175 people. Twenty-seven households are present on the site, with 30 adults and 58 children of school age (the number of children below school age is not known). Thus the impact on the market gardeners will be both physical and economic displacement. The market gardens are not just for subsistence, but also provide cash income from sales in the city’s markets. According to the 2009 census (done for the ESIA), 86% of the people rely on the site as their sole source of income. While most of the people using the site have been there ten years or less, at least 11 people have been there for 21 years or more. The market gardeners belong to three associations supporting their gardening, but with additional objectives for protecting the environment and mutual aid. These associations form the major social networks binding the people on the site together. The figure of 175 people used above is from a recent census, which found a greater number of market gardeners than were originally reported in the ESIA. The ESIA census was undertaken during the rainy season, and market gardeners had temporarily left the site because of flooding. The recent census has been approved by the association of gardeners. A survey with 78 of the affected market gardeners (representing approximately 44% of the population) has been undertaken to establish a baseline standard of living. This survey was carried out among 50 men (31 individual questionnaires and 19 people in focus groups) and 28 women (19 individual questionnaires and 9 people in focus groups).
The resettlement action plan for the market gardeners includes a combination of compensation and the provision of a new area in which to continue their activity. The identification of this area is the responsibility of the market gardener association. Several sites are still under consideration. There is a provision in the RAP that allows the PAL to designate a location if the association of the market gardeners has not done so by end of October 2010.
The sand mining operation employs sand miners and truckers (approximately 900 drivers and assistant drivers), who dig and haul sand that is used for construction, but also vendors and buyers. The sand miners are united under the umbrella of the Union des transporteurs de sable de mer (‘Union of Ocean Sand Transporters’ or UTRANSAM). In Togo, any activity resulting in the exploitation of resources for construction purposes requires a permit from the Mining and Geology Directorate (“Direction Générale des Mines et de la Géologie”). Whilst such a permit is not in place for the ongoing sand mining operations, the activity is tolerated (yet unauthorized) and a tax is perceived per truckload of sand. The total volume of sand taken from the site was estimated in the ESIA as 1.25 million cubic meters per year. No sand miners live on the site and so they will only be economically displaced. Since the technology used is largely shovels, and transport to and from sites is provided by the truck drivers, the relocation of this activity should be straightforward in its implementation. The Ministry of Mining and Energy, through its Mining and Geology Directorate (“Direction Générale des Mines et de la Géologie”) has identified 3 alternative continental sites for their activities. The resettlement action plan outlines the potential areas identified. The Ministry of Mining and Energy, through the committee formed to relocate the sand mining activity, is in consultation with UTRANSAM, and has proposed alternative sites in writing, which should be acceptable. The conditions for development and exploitation of these alternative sites are currently under discussion between the Ministry of Mining and Energy and UTRANSAM.
UTRANSAM began an awareness campaign to inform sand miners of the proposed relocation agreement. The Association has agreed to in principle, but has not yet signed pending the completion of the full consultation with its members.
Both resettlement action plans include adequate grievance mechanisms. In the case of the market gardeners the grievance mechanism has been tested and is well functioning.
A limited additional number of food vendors, who cater to the market gardeners, are also present. The census included the gardeners but not the vendors as affected people as the food vendors are a secondary economy dependent at present on the market gardeners. The vendors generally use portable structures and can move easily relocate. Furthermore, it is likely that these vendors will remain in the surrounding to take advantage of the new clientele that the expansion of the port will bring.
Finally, there is a restaurant, which has reached an agreement with the PAL to move.
PS6: BIODIVERSITY CONSERVATION AND SUSTAINABLE NATURAL RESOURCE MANAGEMENT
The Project consists of: (i) constructing a 1,050 meter quay on the northern side of the newly constructed port basin; (ii) dredging along the quays, access channel, and turning basin to 16.6 meters depth (from the current depth of approximately 14 meters); and (iv) developing 53 hectares of terminal area and container yard.
The Project site lies within a territory reserved for expansion of the Port and is located in an artificially created and heavily modified habitat. As a result of further artificial creation of favorable conditions, parts of the Project site are covered by mangrove. Furthermore, the project site is within the Togolese coastline which is visited by 4 species of marine turtles listed in IUCN red list (i) dermochelys coriacea (leather back turtle) - critically endangered; (ii) chelonian mydas (green sea turtle) - endangered; (iii) lepidochelys olivacea (olive ridley) - endangered; (iv) eretmochelys imbricata (hawksbill turtle)- endangered.
These turtles use the beach area to the west of the existing port, all the way down the Ghanaian coastline, as their nesting grounds. The area in which the Project site sits is placed third in terms of area of importance for the nesting of these turtles. Of this area, only 400m is within the Project footprint. Construction activities may have a temporary negative impact on the turtle nesting behavior as they are sensitive to both light and noise. As the sea turtles tend to stay only for a few weeks around the same area during nesting season, this enables the Company to ensure construction is not undertaken in the areas where turtle nesting activities take place during this period. For the period of September 2010 to March 2011 nesting period, there should be no impact as the main construction works will begin after this period. For the period of September 2011 to March 2012, appropriate measures will be taken to ensure that there will be no impacts to the turtles. Thereafter, the turtles will progressively have alternative viable new habitat to lay their eggs such as the beach area currently occupied by the sand miners.
As discussed above, the turtles will be temporarily on the beach, and measures will be taken to not disturb their nesting activities; the issue at hand is the conservation of the turtle eggs as they are considered as local delicacies in Togo as well as other parts of the world. There are currently several NGOs, such as Friends of the Earth Togo (“Les Amis de la Terre - Togo”) and GEPIB (“Groupement Environnemental pour la Protection des Initiatives à la Base”, one of the three market gardeners’ associations) working in the area ensuring the protection of turtle eggs (video of such activity can be found at the following link
http://www.youtube.com/watch?v=gJUxmGpyzfo). Activities include an awareness campaign and teaching locals how to protect/hide the eggs from poachers. The security arrangements preventing access to the construction site will prevent poachers from accessing the turtle eggs. The Company will in addition engage with some of these experts and ensure that they continue their activities (including monitoring and reporting) on the Project site. Furthermore, the Company will ensure the aforementioned measures will be incorporated into the construction contractor’s EMP and implemented during construction activities to avoid or minimize the impacts.
Adjacent to the area where the market gardening activities take place, there are some avicenia germinans (black mangrove), conocarpus erectus (mangrove shrubs), shoreline purslane, and mangrove shrubs covering an area of approximately 6.5 ha. Togolese scientists consider this area of mangrove and mangrove shrubs to represent an area of particular ecological interest. Because this area will be cleared during construction of the terminal, an offset program will be implemented to replant twice the surface of this vegetation. The specific areas to be replanted will be identified with the help of recognized experts; it’s important to note that these mangroves at the site were planted and therefore the given the right habitat the offset program should be successful. This vegetative area also serve as a temporary resting and feeding ground for a limited number of migratory birds. However, it is anticipated that they will migrate further west of the Project including area where mangroves will be replanted or in other places in Togo.
The authorities will put in place a committee comprised of experts, NGOs, and other stakeholders to develop a mangrove management plan that will outline new habitats for mangroves, undertake monitoring and reporting activities, and ensure optimal result are obtained. As with the resettlement action plans, the Company intends to play a pivotal role in the management of these activities to ensure compliance with the provisions of IFC’s PS6.
