The Company has presented plans to ensure that the Project will upon implementation of the specific agreed measures, address its environmental and social impacts and comply with environmental and social requirements including: the host country laws and regulations; IFC’s Performance Standards; and the World Bank Group (WBG)/IFC environmental, health and safety guidelines. The information about how these potential impacts will be addressed is summarized in the paragraphs that follow. A map of the site and layout of the proposed Terminal is provided in the attached documentation.
Social and Environmental Assessment
In 1998, Government of Vietnam undertook an environmental impact assessment (EIA) encompassing the expansion and development of the Cai Lan Port. The Cai Lan Port is located on the landward side of Bai Chay peninsula, which separates it from the Ha Long Bay, a UNESCO World Heritage Site. The GOV wanted to expand the Cai Lan Port from a single berth facility to a multi-berth deepwater port in two stages. The first stage consisted of: the development of berths 5, 6, and 7 to the east of the existing single berth (leaving a gap of 3 berths numbered 2, 3 and 4); construction of most of the port infrastructure and associated facilities including access road widening; and dredging of the access channel (which passes through the Ha Long Bay heritage site area) and turning basin in the port area. The Project represents the second stage and consists of the development of berths 2, 3, and 4 within the existing operational Cai Lan Port.
The 1998 EIA was undertaken in accordance with GOV requirements and the then international good practice, standards and guidelines on assessment and mitigation of impacts associated with port development including those from United Nations, the World Bank, the Asian Development Bank and Overseas Coastal Area Development Institute of Japan. The EIA details the impacts, mitigation measures and a monitoring plan: (a) for the entire stages 1 and 2 development; and (b) to manage potential negative risks and impacts due to construction and operation of the Cai Lan Port.
In 2009, CICT commissioned PortCoast to carry out an EIA specific to the Project. The EIA has been approved by Ministry of Natural Resources and Environment, Government of Vietnam. The EIA was completed in January 2010 and, based on the updated baseline data, identifies the environmental and socio-economic impacts of the Project and recommends mitigation measures to minimize negative risks and impacts. Further, CICT retained Environmental Resources Management (“ERM”) to review the PortCoast EIA and undertake a “gap analysis”, with respect to IFC Performance Standards. ERM’s key recommendations included: development of a Social and Environmental Management System for the Project encompassing both construction and operation phases; development of a marine dredging management program including assessment of the quality of material to be dredged, which the Company has since completed; and strengthening of programs to asses and manage impacts on marine biodiversity, social receptors, ambient air quality and those due to water way traffic increase, wastewater, solid waste, ship/vessel wastes and accidents/incidents. Based on the above gap analysis and recommendations, CICT has prepared an environmental and social action plan (“ESAP”), detailing measures it proposes to implement to ensure that the Project is implemented and operated in a manner consistent with IFC Performance Standards.
Social and Environmental Management System (SEMS)
As part of the ESAP, CICT has outlined an appropriate SEMS and identified the various management programs that will be developed and implemented during construction and operation to ensure that the Terminal is constructed and operated in accordance with national requirements and IFC Performance Standards. The aspects addressed include: excavation/backfilling at site and transportation of construction material; dredging, transport of dredged material and disposal; concrete mixing, casting and construction at site; equipment and barge operation; vessel waste management; Terminal equipment, containers and vessel operation, cleaning and repairs; hazardous cargos, hazardous materials and wastes; worker camp and activities of construction workers, employees and customers; occupational health and safety; local hiring and training; community engagement; emergency response plans; monitoring and reporting; and compliance requirements for contractors. The Company will contractually require the Project’s engineering and construction contractors to adhere to applicable social and environmental legal/national requirements and fully implement environmental and occupational health and safety (“EHS”) measures defined in project EIA, ESAP and CICT’s occupational health and safety plan and standards. The Company will put in place an appropriate EHS organization with roles and responsibilities clearly defined both during construction and operation. This includes deploying at least one fulltime dedicated EHS professional during construction and operation to ensure implementation of the management program and also requiring the construction contractor(s) to deploy EHS professionals during construction. While the contractor is required to ensure adherence to applicable social and environmental requirements, the Company will put in place detailed procedures to audit and document contractor compliance with national requirements and IFC Performance Standard provisions as part of the SEMS. The management programs to be developed and implemented by CICT have been outlined under the ESAP and the Company will detail operating procedures, including the appropriate EHS training, monitoring and reporting processes, to ensure effective implementation of the mitigation measures.
Labor and Working Conditions
About 100 workers are expected to be deployed at the Project site during construction and about 450 workers are expected to be engaged in the Terminal during operations. The Vietnamese Constitution and Labor Law grant all persons the right to work in an occupation of their choice, and to improve their skills without discrimination on the basis of sex, social class, beliefs or religion. In addition the Labor Law prohibits all forms of forced labor, and provides for the right to strike in accordance with the law. It also covers a broad range of labor matters, including trade apprenticeship and training; the form and content of employment contracts and collective agreements; conditions of employment; social security and occupational health and safety.
Construction contractors are required to adhere to applicable labor laws including prevention of child labor and forced labor. CICT will put in place appropriate audit procedures to obtain assurance on construction contractor compliance with applicable labor laws. CICT has prepared a HR Policy to provide fair labor and working conditions and will communicate the same to all employees both electronically and in print. The HR Policies are generally consistent with IFC Performance Standard provisions and address: compliance with applicable labor laws; employment; training; performance appraisal; working hours; leaves; salaries, bonuses and other benefits; personal particulars; travel related reimbursement; office safety and security; harassment and intimidation; and discipline and disciplinary action. As part of the ESAP, the Company will further elaborate on procedures for disciplinary action, employee grievance redress and prevention/redress in the event of harassment and intimidation.
The Company has developed an occupational health and safety program and requires its contractors to abide by these standards. Under the standards, CICT will ensure that all contract workers and employees (both during construction and operations) be provided with personal protective equipment, and procedures will be developed to ensure their use. They also will be properly trained in the relevant hazards, safety procedures and emergency response. Safety rules and guidelines will be established and regularly communicated to employees through internal circulars and training programs.
Pollution Prevention and abatement
Pollution prevention and abatement aspects of relevance for CICT include: construction impacts; sourcing and transport of fill material; dredging and dredge spoil disposal; terminal pollution control and waste management; ship support operations; handling and storage of dangerous cargoes; impacts from increased vessel traffic on the Ha Long Bay; impact from increased road traffic on neighboring community; and emergency response planning and preparedness. The EIAs and CICT ESAP have delineated a number of mitigation measures to minimize associated impacts in both construction and operation phases.
CICT will ensure that its contractor sources the 272,000 m3 of fill material from an existing quarry/borrow area already identified and located on the hill (Ghen Tau mountain) South of the Cai Lan Port. Further, about 270,000 tons of other construction material (stone, concrete piles, cement, steel sheets etc) are expected to be transported to site both by barges and by road. The potential environmental impacts from construction activities (i.e., transport of fill material, land clearing and reclamation, cement concrete batching plant related activities, quay structure, container yard and buildings) include fugitive dusts, soil erosion and sediment loading increases, noise, waste management, spills of hazardous and other material during transport by barges, and construction vehicle traffic disruptions. CICT and their contractors are expected to control these to acceptable levels through application of standard construction environmental controls and mitigation measures recommended in the environmental assessment and ESAP, which will be incorporated into the construction contract documents. Some of the specific mitigation measures to be applied include: installation of sediment traps to reduce sediment in runoff generated during land reclamation; collection, storage and disposal of liquid and solid wastes generated during construction (including from barges used to transport construction material and dredged material) through appropriate and authorized treatment and disposal facilities; implement measures to minimize risk of spill, overflow and fugitive emissions during transportation; and provision of water sprays to control dust on roads and trucks, as well as covers on construction materials.
Dredging of the berth area and the basin near berth 2, 3 & 4 will generate approximately 515,000 m3 of dredged material. Dredging will be undertaken in a manner to minimize sediment disturbance and impact on marine organisms including minimization of suspension, turbidity and impact on migration of marine organisms. Maintenance dredging is expected to be undertaken every 3 years and will generate about 50,000 m3 of dredge material. All dredged material will be disposed at an offshore disposal site designated by the responsible government authority about 22 km from Cai Lan Port, outside the Ha Long Bay area near Long Chau Island 2 km from the access channel. The site has 20 m depth and has the capacity to take 12 million m3 of deposit. CICT has characterized the chemical quality of the material to be disposed at the designated site to confirm that it conforms to the allowable quality. In addition, CICT will perform water quality monitoring of suspended solids, turbidity and benthic community before, during and after dredging operations.
Power will be sourced from the grid but 3 x 750 KVA diesel generators will be provided as backup power. Short term increase in SPM, SO2 and NOx levels in the ambient air is expected during construction. However, during operation phase, with an expected truck traffic of 980 vehicles per day, it is expected that NOx levels will increase in the ambient but emissions are predicted to remain within national standards. It is estimated that 60m3/day of water will be required for domestic purposes and waste water generation will be 48 m3/day by CICT alone. Liquid effluents generated at the terminal will be treated in the Cai Lan port common wastewater treatment facility and discharged consistent with applicable national standards and good international practice. Storm water runoff free of contamination will be collected in open drains with sediment traps and discharged directly to the bay. Surface runoff from maintenance areas or areas where spills of chemicals might occur and cause contamination, will be separately collected and pre-treated in oil/water separators prior to discharge to the terminal central wastewater treatment system. Employee-generated sanitary wastewaters will be discharged through the municipal sewers to the Ha Long City sewage treatment plant. The Cai Lan central wastewater treatment plant has a capacity of 400 m3 per day and consists of primary, secondary, and related sludge treatment processes. Treated effluent will be disinfected and discharged to the bay consistent with applicable Vietnamese standards. Areas where fuels or other hazardous materials are stored will be constructed within secondary containment structures to contain and prevent any leaks from being released to the environment. Waste oils and other solid and hazardous wastes generated will be periodically collected by a licensed contractor and appropriately recycled as fuel, or disposed at the approved government-operated waste facilities.
No barge or ship/vessel generated waste including bilge water will be received and treated at CICT nor is bunkering proposed to be undertaken at CICT or at Cai Lan Port. However, Cai Lan port authorities will in accordance with applicable regulatory requirements make provisions for receipt, transport to an offsite location, treatment and disposal of all ship/vessel generated wastes. CICT will not permit vessels to discharge oily bilges, sludges, and water containing oily mixtures into the marine environment, and will conduct inspections regularly to ensure that vessel operators comply with all laws and regulations. Other solid waste generated at the Terminal will be treated and disposed through the solid waste treatment plant at Cai Lan Port.
Some of the containerized cargo handled at the Terminal may be hazardous under the International Maritime Organization’s (IMO) Dangerous Goods Code. This material could include flammable gases, poisons, flammable liquids, corrosives, reactive and spontaneously combustible substances, oxidizing substances, etc. Containerized hazardous cargo will be stored by material class in segregated areas within the container storage yard with good access to containment resources and emergency response equipment; no radioactive materials or explosives will be handled. The majority of containers with dangerous cargoes will be handled as full containers, and the inventory monitored continuously.
CICT will be responsible for coordinating the planning and response to hazardous materials accidents and emergencies at the terminal, and will put in place emergency action plans consistent with international maritime conventions (MARPOL 73/78). The Company will also coordinate its emergency response activities with those of Cai Lan port authorities, as well as with the Vietnamese maritime authorities responsible for general shipboard emergency response needs and related marine spill response activities. With regard to the landside terminal operations, CICT will also have procedures, trained personnel, and equipment in place for responding to emergencies, including fire, chemical spills and mishaps, accidental release of petroleum products, and medical emergencies. The emergency response plans will be designed to address potential risks from typhoons, storm surges as also risk of exacerbation of an accident due to natural disasters like typhoons and storm surges.
Community Health, Safety and Security
CICT will construct infrastructure and use equipment that meet good industry practices. The Company will design, construct, operate, maintain and monitor the Terminal, to ensure minimal community, environment, health and safety impacts. The entire construction work will be within the existing Cai Lan Port. Truck and barge traffic is expected during construction. Further, it is expected that about 980 trucks per day will visit the Terminal during operations. CICT will ensure that the construction contractors adopt good EHS practices during construction, train equipment operators and drivers in safe driving techniques; develop a materials movement plan to ensure that vehicle movement during construction has minimal impact on daily life patterns of nearby communities; undertake appropriate measures to reduce fugitive emissions from storage and transport of construction and waste material; and periodically monitor ambient air quality as well as noise levels in potentially affected communities/villages, and implement mitigation measures where required. The Company will develop an appropriate traffic management plan to minimize risk to communities that are in the vicinity of the Cai Lan Port and on the key transport route, during operations.
While the effort will be to maximize use of local labor during construction, a construction worker camp to house about 100 workers will be set up by the contractor. CICT will ensure that the camp conforms to the good international industry and benchmark practices including those defined in the IFC Guidance on Worker Accommodation. CICT will also develop a plan and require the contractor, to implement measures to minimize/mitigate risk on account of influx of labor. Further, the Company will provide appropriate facilities and amenities for truck drivers at the Terminal.
CICT will develop and implement procedures for ensuring that: past records of security personnel employed are screened; security personnel have clear objectives and permissible actions laid out; security personnel are trained in avoidance of human rights violations, use of fire arms and handling various situations with clear procedures; security incidents are recorded, investigated and corrective action implemented; bona fide complaints against security personnel are investigated/disciplinary actions implemented; and there is a grievance mechanism for aggrieved members of community or employees in the event of a violation of the code for security personnel.
CICT has prepared an emergency response plan (ERP) and will include measures in the plan to address offsite emergencies. The Company will: communicate the ERP to stakeholders and also link the ERP to the district/local government ERP; undertake drills on emergency response including participation of nearby communities; and continually improve the ERP based on outcome of the drills.
Biodiversity Conservation and Sustainable Natural Resource Management and Cultural Heritage
The Project site lies within the Cai Lan Port and is heavily modified. Within the Port itself there are considerable areas with no vegetation and all the vegetation present is re growth, primarily grasses and herbs. The 130 m wide access/navigation channel to the Cai Lan Port is 36 km long and approximately 15 kilometers of the approach channel passes through the UNESCO World Heritage Site located in Ha Long Bay.
In 1994, an area of 434 km2 in Ha Long Bay, including 788 islands was declared a World Heritage Site by the Ministry of Culture, Information and Sports, GOV and UNESCO. This includes a buffer zone of approximately 1000 km2 with focused management of environmental impacts. The Ha Long Bay was designated a World Heritage site due to its: unusual geological features; important marine and coastal ecosystem; value as a cultural, historical and archaeological area; and importance for tourism based on natural resources. In keeping with the requirements for UNESCO World Heritage Sites, GOV had developed a conservation and management plan for the site which addresses issues pertaining to pollution, ecosystem restoration, protection and encouragement of appropriate tourist activities. Further, Cat Ba island, which is approximately 10 kilometers from the Cai Lan Port (Project site) and is an important coral reef location that has been designated a national park by GOV.
The 1998 EIA for the Cai Lan Port determined that the most significant potential environmental impact on the UNESCO World Heritage site in Ha Long Bay will likely result from dredging operations. Because of the contaminants in the dredged material and potential impacts to Ha Long Bay it was agreed that all dredged material be disposed of outside Ha Long Bay in the Gulf of Tonkin. Short term changes in the water quality during dredging are not expected to be significant over the long term. Once the Terminal is operational, increase in vessel traffic is expected to be about 400 vessels per year (say an average of 1.2 vessels per day) and increase in barge traffic of about 8 per day. With modern large size container vessels, while the magnitude of impact from any accident may increase, the sophisticated navigation aids and controls on larger vessels are expected to overall reduce the risk of marine accidents.
While the Project’s impact is expected to be limited, any adverse impact on the marine environment and the Ha Long Bay and its biodiversity can be minimized through application of the mitigation and management measures mentioned here above including through: use of appropriate dredging technology to remove, transport and dispose dredged material; disposal of the dredged material at the identified offshore location; management of port storm water and sewage, vehicle maintenance; and appropriate accident contingency planning.
