While all Performance Standards are applicable to this investment, IFC’s review indicates that the investment has or will have impacts that must be managed in a manner consistent with the following Performance Standards: PS1: Social and Environmental Assessment and Management Systems, PS2: Labor and Working Conditions, PS3: Pollution Prevention and Abatement; PS4: Community Health, Safety and Security; . Magerwa’s current operations have no impacts related to Land Acquisition and Involuntary Resettlement (PS5) or Biodiversity Conservation and sustainable Natural Resource Management (PS6). However, future expansion of operations within Rwanda and neighboring countries may involve greenfield development. As such, as part of this investment’s Action Plan, the Sponsor will be required to undertake an environmental and social assessment of greenfield developments and manage risks and impacts associated with those developments in a manner consistent with the Performance Standards. Based on discussion with Magerwa management and on site visits, IFC has determined that there are no impacts related to Indigenous Peoples (PS7) or Cultural Heritage (PS8) associated with Magerwa’s current operations, nor are there likely to be such impacts with future expansion of those operations. In the latter case, development will be confined to Magerwa’s existing operating sites or to established port operations in neighboring countries.

This is a Category B project according to IFC’s Environmental and social Review Procedures. Construction and operation of warehousing and trans-shipment facilities pose limited adverse environmental and social risk. Issues related to this investment include: the Company’s capacity to manage the social, environmental, health and safety performance of its operations and potential future expansion in accordance with local requirements and IFC Performance Standards; assurance of fair, safe and healthy working conditions for employees and contract workers; handling and management of hazardous materials and hazardous wastes; and management of employee retrenchment resulting from privatization and redundancy.

Information concerning how these potential issues are or will be addressed by the Magerwa is summarized in the paragraphs that follow. PS 1: Social and Environmental Assessment and Management Systems – IFC’s assessment considered the Company’s management of its environmental, health and safety performance in the establishment and operation of its facilities; compliance with national and local permitting requirements; and the Company’s engagement with local communities regarding environmental, health and safety performance. All of Magerwa’s facilities are simple, enclosed areas with warehousing and administrative blocks – facilities whose limited scale and complexity has exempted their construction and operations from Rwandan Environmental Management Agency (REMA) environmental impact assessment requirements. Administrative blocks are typically shared with officers of REMA, the Rwandan Bureau of Standards (RBS) and national customs and related revenue collection authorities and, as such, the Company operates under the direct supervision of the national environmental and quality assurance regulatory agencies. Magerwa staff maintain close working relations at the operational level with the staff of these regulatory bodies Magerwa’s operations meet all requirements established by REMA and RBS for the handling and warehousing of goods imported to, trans-shipped through and exported from Rwanda. The Company’s environmental health and safety (EHS) performance is managed at the corporate level by the Director of Operations who has oversight of occupational health and safety of staff, contract workers and equipment operations, environmental compliance, hazardous materials handling and storage and coordination of emergency management with the Rwandan National Police. A Manager employed at each of Magerwa’s facilities (warehouse complexes, transit yards and border posts) has the responsibility for EHS performance at the operational level and reports directly to the Director of Operations. As part of its investment in Magerwa, Portek will incorporate appropriate and relevant requirements of the IFC’s Performance Standards into the Company’s existing business processes for establishing new facilities and expanding its existing scope of operations. Magerwa’s Director of Operations participates in a monthly “Stakeholders’ Meeting” with representatives of REMA, RBS, customs, security and Kigali municipal authorities to review issues related to cargo import and export, and coordinate appropriate responses to those issues. Minuted agendas for these meetings include: management of hazardous cargo transiting through the country; safe disposal of cargo abandoned by consigners that is lying in Company warehouses; and the implications of Rwanda’s ban on plastic packaging. The concerns of these Stakeholder Meetings are reported to be increasingly focused on quality standards as Rwanda becomes progressively more integrated with the East African Community in trade and administration, and seeks a wider regional and international market for its goods. Once each month, the Director of Operations and the managers of the Company’s facilities throughout the country join their surrounding communities to participate in a government mandated community service day. This event provides the opportunity for community members to voice any grievance concerning the operation of any Magerwa facility. Traffic safety, noise, light pollution and security are some of the issues that have been raised in past events. PS 2: Labor and Working Conditions. IFC’s review considered Magerwa’s operations with regard to fair, safe and healthy working conditions in its operations. The Company currently employs 146 professional staff, ranging from corporate operations and services, to warehouse management to equipment operators, 14 of whom occupy management positions. Personnel policies and procedures are detailed in the Company’s “Statut de Personnel des Magerwa”, a document that includes: guidelines for recruitment, selection and continuity in service; standardized skill competencies; salary scales and benefits; performance appraisal; career progression; professional development; rewards and recognition; professional ethics and disciplinary procedures; and superannuation. Salary and benefit packages for all employees are competitive and reviewed annually. The Company’s Human Resources Department is currently revising these policies and procedures to conform with the May 2009 revision of the national Labor Law. The national labor law guarantees the rights of employees to freedom of association, collective bargaining, non-discrimination, individual worker grievance resolution and arbitration of labor disputes. As part of its personnel policy revision process the Company plans to reconstitute the non-management Staff Committee which has become moribund due to employee transfers, attrition and a number of organizational restructurings over the last five years. Magerwa sub-contracts all non-mechanized handling of goods at its facilities with a Cooperative Association based on a man-hour per ton of cargo basis. The Company’s contract with Cooperative includes salary, tax and contributions to the members’ welfare fund, and on-site workers are covered by the Company’s insurance in the event of accident and injury. The Company has no formal training policy but it has provided a small number of operations staff with comprehensive training in logistics and warehouse management at regional and international training centers. Staff who have received such training transfer their knowledge to other operations staff through “in-house” training sessions. Magerwa management is also developing stronger ties with regional trade facilitation organizations (e.g., the Northern Transit Transport Coordination Authority in Mombasa and the Transit and Transport Facilitation Agency in Dar-es-Salaam) to create more opportunities for staff capacity building through training and information exchange. Good housekeeping and adequate fire suppression is apparent throughout all the Company’s facilities visited by IFC and the Company boasts a policy of “zero tolerance” for violation of safety procedures. However, there is evident need for improvement in some areas to protect contract labor such as the segregation of hazardous materials and the stacking methods of palleted goods. Facility managers are required to report accidents immediately to the HR department for onward reporting to the Company’s insurance providers, but Magerwa management reports that there has no record of a serious lost-time accident. As a condition of its investment, IFC will require an occupational health and safety audit of all Magerwa facilities and implementation of recommended corrective actions. PS 3: Pollution Prevention and Abatement. IFC’s review considered the Company’s management of resource use and waste disposal on the surrounding human and natural environment in its operations. Magerwa facilities’ water requirements are limited to sanitary requirements for offices, administration blocks and transit yard, which provide bathing facilities for truck drivers awaiting delivery of their supplies to Kigali’s limited capacity fuel depots. The majority of these facilities draw ground water from tube wells but more remote border posts rely on natural streams. All sanitary wastewater is discharged to engineered septic systems, as at the Company’s Gikonda headquarters, or to soak pits. Warehousing operations are not energy intensive and the majority of Magerwa’s facilities draw their electricity from the grid, which is based predominantly on hydropower. More remote facilities rely on diesel generators for power supply. The Company promotes energy conservation at its administrative facilities as a cost-savings measure. A cold storage facility operated by Magerwa at the Kigali International Airport is a non-CFC system that is regularly inspected and maintained by the German supplier. Solid waste from Magerwa operations primarily comprise discarded packaging materials, including cardboard, styrofoam and wooden pallets, is sold to scrap dealers for sale locally and in neighboring countries. Prohibited items, such as expired pharmaceuticals, are consigned to one of Kigali’s three incinerators under the supervision of REMA and the Ministry of Health. Abandoned consignments are auctioned under the supervision of the customs authorities and recycled. Waste oil and hydraulic fluids from the Company’s warehousing vehicle operations are collected, stored and sold to recyclers. The Company plans to develop a fuel oil depot in a new industrial zone being developed by the government near Kigali International Airport. The project concept is still being formulated but, as part of IFC’s investment, the Company will be required to demonstrate that international standards of pollution control are applied to the design, construction and operations of this facility. Storage and use of fuel represents potential hazards from accidental spills, fires, or explosions. Consistent with good international practice, the Company will develop Emergency Preparedness Plans, as well as an Oil Spill Contingency Plans for the proposed depot. Specific measures will include: fuel tank storage alarm systems; engine hall alarm systems; and fire protection equipment. Employees will be trained in their responsibilities under each of these plans. The Company will also coordinate its emergency response activities with the surrounding industrial units and neighboring communities PS 4: Community Health, Safety and Security. IFC’s review considered the Company’s capacity with regard to the impacts of the construction and operation of its facilities on the health, safety and security of surrounding communities. The Company’s operations have limited impact on surrounding communities apart from the handling of hazardous materials. Representatives of the major airlines servicing Kigali International Airport regularly inspect the physical plant and handling procedures of ground staff and Magerwa personnel to ensure safe handling of hazardous cargo and reduced liability. Emergency response planning for the proposed fuel oil depot (see above) will also include specific aspects and actions to mitigate the potential hazards associated with the delivery of fuel. These will include: i) emergency call lists of key outside parties; ii) community liaison procedures; iii) coordination with the local fire department in the event of a fire or explosion; iv) evacuation routes, where applicable; and v) provision of emergency response training to these various parties. Magerwa facilities are secured with walls, fencing and gates to restrict access to all but authorized personnel. Security of border facilities and those at the Kigali International Airport is maintained by the national police; for all other facilities, the Company contracts a large well established security company for armed and unarmed security guards. In its equipment rental operations, the Company ensures that all vehicles are properly maintained and that only its own trained personnel operate those vehicles.

In addition to the monthly participation in a day of community service, Magerwa management collaborates with representatives of district level Joint Development Action Forums to assist in the financing of public works such as school construction. The Company also engages in a variety of activities to support the survivors of the Rwandan genocide.

Portek and Magerwa will provide information to the public on greenfield site development and associated management and emergency response plans in accordance with local and IFC requirements through media and web-based outlets, including their respective websites: www.magerwa.co.rwan and www.Portek.com. For further information on Portek’s proposed investment in Magerwa, contact: Adam Iskounen General Manager Portek International Limited 20 Harbour Drive #02-01 PSA Vista Singapore 117612 Tel: (65) - 6873 1114 Fax: (65) - 6873 2224 Email: adam@portek.com Website: http://www.portek.com

Current client performance is aligned with applicable Performance Standards and EHS Guideline requirements. No ESAP is required.