IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS 1: Social and Environmental Assessment and Management System; PS 2: Labor and Working Conditions; PS 3: Pollution Prevention and Abatement; and PS 4: Community Health, Safety and Security. The Project is located on primarily agricultural land in the vicinity of an existing highway. The land for the Project was purchased on a willing seller/buyer basis and any significant impacts of the type contemplated by PS5: Land Acquisition and Involuntary Resettlement, PS6: Biodiversity Conservation and Sustainable Natural Resource Management, PS7: Indigenous People and PS8: Cultural Heritage, are not expected on account of the proposed Project.

This is a Category B project because a limited number of specific environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The key environmental and social aspects in the Project are the identification and mitigation of social and environmental impacts of the Companies; social, environmental, health and safety management systems; labor working conditions during construction and operation; pollution prevention and abatement during construction and operation; community health, safety and security; and community consultation and engagement. Potential E&S impacts are mainly expected to be during the construction phase. These, besides being mitigable are likely to be limited to project sites; short term; and will likely not have any impact on environmentally sensitive areas. Further, it is possible to readily design and implement engineering and management measures to mitigate adverse impacts during construction and operations. SPC will manage its environmental and social performance in accordance with applicable local laws and regulations and international standards, including IFC’s Performance Standards on Social and Environmental Sustainability.

PS 1: SOCIAL AND ENVIRONMENTAL ASSESSMENT AND MANAGEMENT SYSTEM SPC’s objective of developing grid connected solar power projects - and thus the proposed Project – is in itself socially and environmentally desirable and the Sponsor is committed to ensuring high social and environmental outcomes. SPC’s present approach to managing social and environmental performance is consistent with IFC Performance Standard provisions. To ensure that the proposed Project is developed and operated in compliance with IFC Performance Standards, SPC will implement an action plan that will include the measures set out below. SOCIAL AND ENVIRONMENTAL ASSESSMENT The Companies, as per national regulatory requirements, commissioned independent experts to conduct an Environment Impact and Safety Assessment (ESA) for the Project. The ESA is now completed for both Companies. The ESA addresses social, environmental, occupational health and safety aspects and impacts associated with the proposed Project’s construction and operation, and includes: a baseline assessment of the Project’s sites (soil, geology, water resources, meteorology, ambient air quality, land use, accessing the site and traffic on the nearest highway); and a management plan that addresses wastewater, sanitary and sewage facilities, security, drinking water, garbage disposal, and community engagement. The ESA reports are disclosed locally at the Project’s sites and is also attached to this ESRS. MANAGEMENT PROGRAM The ESA reports recommend measures to mitigate the impacts arising during construction as well as operation at each Company. In addition, SPC has laid out standard procedures and practices for all its subsidiaries, to ensure that the Project is implemented in compliance with high E&S standards. At its operational Korat 1 solar power plant, SPC has implemented Environmental Management System (EMS) certified compliant with ISO 14001. Similarly, the Companies will implement EMS after construction is complete at the Project sites, and subsequently, seek an independent certification. ORGANIZATION SPC has appointed a Project Manager at each site, who is responsible for the implementation of the Project as per the local regulatory requirements as well as procedures and practices laid out by the Sponsor for all its subsidiaries. The Project Manager is responsible for all the operational matters related to the construction of the Project, including occupational health and safety management on site as well as the contractors. COMMUNITY ENGAGEMENT The Companies have conducted public consultation for the proposed Project in accordance with local regulatory requirements, as a part of the permitting process. The public consultations were chaired by senior local government officials, and attended by villagers in the vicinity of the proposed Project sites and local representatives of various other government agencies and PEA. All the public consultations resulted in a vote recommending implementation of the Project at each of its sites. For the SPKR2 project, some community members raised concerns about the movement of heavy trucks during construction and its potential impacts on the village roads. Accordingly, SPKR2, in consultation with relevant government departments, developed and implemented an alternative transportation plan whereby light trucks with limited loading were deployed, suitable for the existing rural roads. As a result of a continuous communication and engagement, SPC has developed a good relationship and is receiving good cooperation from the neighboring communities. In accordance with SPC’s practices, SPKR2 and SPLO1 are making the maximum use of locally available manpower and machinery during the construction phase, thus benefitting the local economy. As the SPK2 project is located next to SPC’s completed “Korat 1” project, SPKR2 plans to leverage the experience gained by local villagers during the construction of the previous project. PS 2: LABOR AND WORKING CONDITIONS SPC currently has 31 permanent employees on its rolls. This number is expected to increase with growth in the number of projects under implementation, and also due to the expected increase in EPC and O&M operations. For the proposed Project, total peak manpower requirement would be 130 during construction and 5-8 during operation at each site including contract workers as well as about 40 panel cleaning workers occasionally employed (every quarter on average). WORKING CONDITIONS AND RELATIONSHIP To meet national legal requirements, SPC has developed a Human Resources (HR) Policies and Procedures Manual. It sets out work rules and HR Policies and Procedures applicable to SPC and all its subsidiaries – including SPKR2 and SPLO1. The work rules and HR Policies and Procedures accord with Thai labor law, which in turn is consistent with the provisions of Performance Standard 2. The majority of the workforce at the Project’s sites - during both construction and operation phases - will be sourced from nearby local villages. Local authorities are involved in ensuring that appropriate wage and working condition requirements are adhered to. Wages to the workers are directly distributed to workers. While most workers go home every day after work, some workers (engaged for land filling and pile driving) have set up family camp/accommodations on public land adjoining the project site. Day workers bring their own food from home and a temporary canteen has been set up at the site. Packaged potable water is provided to the workers. OCCUPATIONAL HEALTH AND SAFETY The ESA has identified occupational health and safety risks and mitigation measures to be managed by the Companies. Workers are trained on occupational health and safety as part of the skill training imparted by local authorities. A licensed safety officer is deployed at each site, responsible for safety and environmental management on site as per Thai law. Safety Officer submits monthly safety assessment report to management. PS 3: POLLUTION PREVENTION AND ABATEMENT The proposed Projects will increase renewable energy in Thailand, which will reduce the country’s greenhouse gas emissions. While baseline ambient air quality has been assessed as part of the ESA, material impact on ambient air quality is not expected on account of this project. However, minor temporary impact on ambient air quality and noise levels may be expected during construction. The Companies will implement measures during construction: for management of fill/excavated earth and construction rubble; and for minimization of fugitive dust emissions as articulated in the ESA. Further, the Companies will ensure that other wastes (packing material, metal, debris, cement bags, drums etc.) are collected, stored and disposed off to re-users or in appropriate debris disposal areas. There will be no concrete batching plant at site since significant concreting work is not expected. Pre-cast piles, sourced from a pile manufacturer, are driven and used as a panel frame foundation. Limited concreting work is expected for the sub-station, transformer yard and transmission line poles. Pile driving, use of earth moving equipment and increased traffic for material movement are expected to result in increase in ambient noise levels. However, this increase is short term during construction stage only. The construction work is carried out only during day time and no noise generating equipment will be operated at night. In the operation phase, water use will be for domestic and panel washing purposes only. Approximately 40 m3/day of water is expected to be consumed for each of the Projects. This will come from an artesian well within each project site, which can supply water without any local impact. Material impact on groundwater resources is not expected on account of the Project. Significant quantities of hazardous materials and wastes are not expected to be generated during construction or operation. Nevertheless, the Companies will ensure that hazardous material and hazardous wastes handled/generated at site (both during construction and operation) are: stored under segregation and containment; handled/used with appropriate care and personal protective equipment; and disposed off through entities authorized to handle and dispose hazardous wastes. PS 4: COMMUNITY HEALTH, SAFETY AND SECURITY The nearest resident communities are about 100m from the periphery of the proposed Project sites. However, no equipment and material is expected to be transported through local communities. As described above, SPC has satisfactorily addressed local community concerns related to traffic movement during construction phase. An irrigation and drainage system has been installed in the Project’s sites to collect and store as much rainwater as possible. There will be no water draining or flooding in adjacent agricultural areas. Security personnel will be contracted from reputed security firms. They will not carry firearms. As a part of its screening process, SPC reviews the past records of security personnel prior to employing them on site. Security guards are trained about their interaction with the community and make a daily report to the project manager.

As described above, SPC has actively engaged and developed cordial relationship with local communities and has gained their support for the Project. Going forward, the Companies will develop and implement procedure for heeding and responding to community interest, information requests and grievances on an ongoing basis.  In addition, the Sponsor has commenced an active corporate social responsibility program focused on supporting education and health.

The Company will disclose the project documentation locally at the following addresses: For SPKR2 Project: Moo 11, Baan Jok, Don Chomphu Sub-district, Non Sung District, Nakhon Ratchasima Province For SPLO1 Project: Moo9, Nong Nor, Nong Ya Plong Sub-district, Wang Saphung District, Loei Province. For Inquiries and Information about the Project Contact: Thamapon SupachanprapaFinance DirectorSolar Power Company Limited333/22 Soi Sukhumvit 55Klongton Nua, WattanaBangkok 10110 ThailandTel: +662-381-4504Fax: +662-381-4507Email: thamapon_s@solarpower.co.th