While all Performance Standards are applicable to this investment, IFCs 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. If IFCs investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards

PS 1 – Assessment and Management of Environmental and Social Risks and Impacts
PS 2 - Labor and working conditions
PS 3 - Resource Efficiency and Pollution Prevention
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards
PS5 is not applicable because the business activities of the Company are to provide rental power generation equipment to places owned by their clients and no land acquisition will be required.

Depending on the site specifications of the locations where future rental power generation equipment may be delivered and installed, other Performance Standards (such as PS4, PS6, PS7 or PS8) may become applicable. The Company has policies and practices in place to avoid adverse impacts at these future sites, such as existence of affected communities, sensitive biodiversity areas and areas providing ecosystem services, indigenous peoples or cultural heritage within the area of influences of the installed rental power generation equipment.

The Company’s business activities is to provide a small scale diesel-fired rental power generation equipment for a short period of time, delivered and installed in most of the cases in remote areas. Key environmental and social issues are air emissions and noise from gensets, environmental, health and safety management and performance during delivery, installation, operation of rental gensets. Such business activities have limited potential adverse environmental or social impacts and risks and therefore, the Project is a category B project in accordance with IFC Policy on Environmental and Social Sustainability. Upon application of the measures described below, the Company’s business activities will meet the requirements of the IFC Performance Standards.
**Information On IFCs Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC's appraisal considered the environmental and social management planning process and documentation for the project and gaps, if any, between these and IFCs requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through the implementation of these measures, the project is expected to be designed and operated in accordance with Performance Standards objectives. The key environmental and social risks and impacts are air emissions and noise from the rental power generation equipment, handling and storage of diesel fuel and its associated risks. These potential impacts and risks are mitigated by use of diesel fuel oil with maximum 0.05 % sulfur content, air emissions guarantee for NOx and particulate matter emissions by genset manufacturers, noise control measures such as sound mufflers, double bunded fuel tanks, and the Company’s environmental, health and safety (EHS) procedures.

The Company has Quality Control Policy and Health & Safety Policy Commitment statement. The Company is strengthening its corporate sustainability framework in 2012, and this will include establishment of a corporate policy which address the Company’s objectives to achieve sound environmental and social performance consistent with the requirements of the Performance Standards.

When the Company identifies potential business opportunities to provide rental power generation equipment, as part of the overall business opportunities review, the Company follows its environmental, health and safety (EHS) review process. The purpose of this EHS process is to conduct a detailed EHS review of the project. The key steps of this EHS review includes:
- review EHS lessons learned from previous projects;
- conduct initial review with customer EHS representative;
- review site assessment focusing on EHS risks;
- review equipment configuration and site layout to identify safety issues involving equipment on site;
- review air emission limitation and required permits;
- review and approve subcontractor safety procedure and organization chart;
- identify and order Personal Protective Equipment;
- develop and implement consolidated project EHS management plan;
- identify and conduct EHS awareness for all subcontractor;
- review communication plan to ensure communication in place to report any EHS concern or accident to the Company and its customer;
- communicate ongoing EHS commitment to project financial representatives to ensure EHS cost is captured; and
- review and update project risk assessment to identify critical risk items based on final contract terms.

To assist this EHS review process, the Company uses “New Project EHS Checklist” which is to raise awareness about issues that project teams should consider to address EHS issues. The checklist includes items related to EHS requirements / working conditions (e.g. chemical management, compressed gas, confined space entry, contractor safety, cranes and rigging, electrical safety, fall protection, fork truck safety, hazardous material deliveries, motor vehicle safety, PPE, welding programs), and exhaust emissions limitations (e.g. CO, SO2, NOx and particulates). The Company will incorporate IFC’s 2012 Performance Standards into their EHS review process, and will strengthen their existing air dispersion modeling tool to help conduct a quick assessment of air quality impacts for their medium sized installation (e.g. 30 MW or larger) in a more effective way.

Prior to installation of the genset equipment, the Company conducts a site assessment to evaluate the air dispersion capacity of the site. The assessment includes:
- collect the site data (i.e. checking for nearby building / restrictions etc.);
- ensure that no buildings or topography shall obstruct the flow of exhaust gas;
- check with customer for wind direction;
- if wind data is not available with customer, monitor wind direction or obtain local data;
- install the gensets intake to face the wind direction; and
- in case there is a limitation on the surrounding space (walls / hills), ensure to use remote radiator configuration gensets where the radiator fans and the engine compartment fans will work as a booster to push the exhaust gases / hot air up to 20 m above the container roof.

The Company has a standard procedure to conduct job risk analysis on each project. Analysis is conducted for different steps of genset rental activities (e.g. preparation, installation, fuelling, maintenance, general work on site, work at height, use of mobile equipment such as fork lift trucks, positioning of equipment, confined spaces, security situation, and demobilization). For each step, relevant environmental, health and safety (EHS) risks and potential outcomes are identified. For each identified EHS potential outcome, risk severity is evaluated, and relevant precautions / checklist items are proposed.

The Company has various environmental, health and safety (EHS) procedures in place. They include EHS Procedure No. 1 (Fueling Procedure), No. 2 (Electrical Safety), and No. 3 (Logout/Tagout (LOTO). The EHS Procedure No. 1 (Fueling Procedure) provides equipment fueling instructions for depot personnel both on and off the Company’s property. This procedure includes specific instructions when adding and constructing fueling equipment and fuel tanks, steps to ensure compliance with applicable fire codes and standards, instructions for fuel operation, emergency planning and training, fuel vendor requirements, best management practices and training, and warning light or physical barrier system. The EHS Procedure No. 2 (Electrical Safety) defines the requirements and procedures necessary for safeguarding the Company’s employees who work near, with or on electrical equipment (including generators). The EHS Procedure No. 3 (Lockout/Tagout (LOTO)) outlines the Company’s LOTO program and includes general energy isolation procedures, Red Tags and LOTO Padlocks, Yellow Caution “Do Not Operate” tags and Facility / Maintenance Padlocks, Customer LOTO Procedures, Training, Auditing and Responsibilities.

The Company’s organizational structure is divided in two teams headed by two managing directors with experience in the power equipment rental business and technical expertise. The first team is to handle Inquiry-To-Order (ITO) phase of the business activities and the second team is to handle Order-To-Remittance (OTR) phase. The ITO team has a commercial director and a technical manager who handles EHS aspects of the business. The OTR team has an EHS manager who provides support to both ITO and OTR teams to conduct EHS review process, initial site assessment and to manage implementation of EHS procedures.

For each project site, the site team typically consists of Project Manager, Field Engineer, Supervisors (daytime and nighttime), Lead Technician, Store Keeper and several labor staff. EHS issues are managed by Field Engineer and the Project Manager.

The Company establishes and maintains an emergency preparedness and response system for each site. The system includes an emergency response communication plan, a site evacuation plan, and spillage emergency plan. An emergency contact list is prepared at each site listing contact details of the Company’s emergency reporting lines, subcontractors and the hotlines such as police, fire station and the Company’s client using the rented equipment. The Company’s communication plan shows a systematic categorization of emergency situation (e.g. Human Risk – minor injury to fatal, Environmental Risk – minor spill to fire / explosion, and Equipment Risk – breakdown to fire / explosion) for prompt and effective communication. For each site, the Company’s Project Manager maintains control of project personnel at all times to include monitoring their locations and travel plans. On a monthly basis, the Project manager reviews emergency contact information with project personnel. The Project Manager establishes and briefs his/her personnel on a pre-determined assembly point at site for all personnel in case of an emergency. The Company’s regional EHS manager is notified for assistance and guidance as appropriate. The Spillage Emergency Plan provides sequential guidance on preventing spillage, identification of spillage if happened (e.g. oils, lubricants, hydraulic fluids), early capturing and preventing spread, use of spillage kit (e.g. absorbent materials, absorbent granules), protection of all drains and perimeter areas, and collection of all used absorbent materials and placement in a container that is leak proof. The Company’s EHS training programs includes courses on emergency preparedness and accident prevention.

The Company’s monitoring programs on site includes implementation of handling of non-hazardous and hazardous materials and noise control. Key EHS performance data (accidents, environmental incidents, thermal generating efficiency) are regularly collected, reported internally, and analyzed for further improvement.

SES has direct employees, based out of the Company HQ in Jebel but also employs third parties as technical, labor and security workers at each site, and uses commercially reasonable efforts to incorporate the Company’s requirements on working conditions and health and safety requirements in contractual agreements with such third parties. The Company’s Human Resources (HR) Department established, and is implementing, various HR policies and procedures (e.g. annual leave, travel and living, payroll, overtime, sick leave) in line with IFC PS2. The principle of non-discrimination and equal opportunity is reflected in those policies.

The Company’s management makes it clear in its communication with employees that every employee is free to join a workers organization. The Company’s benefits and salaries are competitive compared with competing companies in the similar sector, and the Company does not have any ongoing legal actions or disputes related to labor aspects. The Company does not employ children – none of the employees is under the age of 18.

Occupational Health and Safety:
For each project, the Company conducts a job safety assessment for each job step (e.g. lifting and placement of gensets by crane or forklift, working at height, installation of gensets / transformers / switchgear panels / cables, installation of fuel tanks and associated piping, diesel fuel filing, removal of lockout & tagout from the gensets breaker, starting the gensets, etc.). For each step, potential hazards are identified, and relevant safe job procedures are recommended.

Installation and operation of gensets involve some certain physical and chemical hazards in the working conditions. Personal Protective Equipment (PPE) including safety helmets, safety footwear, eye protection, gloves for hand protection, hi visibility garment and hearing protection protect against engine noise of gensets, are provided to workers. The Company conducts regular training for all the employees on a periodic basis. The training includes areas on electrical safety, health safety, first aid and hazardous material. Furthermore, depending on customer requirements or site restrictions, the Company conducts site specific and job specific safety training as well. The Company also conducts onsite safety training and site orientation / induction for the Company’s subcontractors.

The Company has not recorded any major injuries or accidents till date.

Resource Efficiency:
The Company’s typical genset size is 1 MW capacity using Cummins engines. The genset energy utilization efficiency varies on fuel quality, ambient operational temperature and altitude. The Company conducts regular scheduled maintenance including overhaul to maintain the designed energy efficiency as high as possible. When old gensets come to the end of life, the Company replaces them with new gensets and the Company’s corporate average energy efficiency continue to remain high. The gensets are designed with use of closed circuit cooling system with very limited water consumption at site.

The Company’s greenhouse gas emissions will depend on the dispatch levels of the gensets that are determined by the Company’s clients. Assuming that the Company’s 150MW gensets operate at 30 percent annual capacity factor with CO2 emissions of 650 gCO2/kWh, the Company’s annual CO2 emissions are estimated as 256,000 ton CO2/year.

Pollution Prevention:

Non-hazardous / hazardous material (including fuel): All non-hazardous garbage generated at site is dispatched in special tanks for disposal by the municipality in which the operation is located. Non-hazardous liquids are withdrawn using special trucks where they are sent to a local treatment facility. Hazardous material (such as new and used oil, cooling) is stored in tightly sealed steel barrels. These barrels are then put in a steel or concrete bund to ensure containment in case of any accidental spillage from barrels. All fuel tanks are double bunded and ensure atmost safety at site.

Noise: All the gensets (1MW size) are installed within a container with sound proof design. Sound mufflers are installed in the inlet air side and outlet airside of the genset. Installation is done in such a way the noise level at 1 meter from the gensets will not exceed 85 dBA. Most of SES’s projects are installed in remote areas away from residential areas. When gensets are required to be installed in urban areas, the Company assesses the noise levels, and takes additional mitigation measures (e.g. minimum 3 m height concrete fence to reduce noise impacts) to make sure that noise levels at residential areas are in compliance with relevant ambient standards.

Air emissions: The typical equipment that the Company currently operates are Cummins KTA50-G3 reciprocating engines. KTA50-G3 Exhaust Emissions Data Sheet specifies NOx emissions (9.0 g/BHP-h, 4,500 mg/m3 at 5%O2), PM emissions (0.11 g/BHP-h, 55 mg/m3 at 5%O2), and SO2 emissions (0.12 g/BHP-h, 57 mg/m3 at 5%O2, assuming 0.035% sulfur content of diesel fuel oil) that are generally consistent with World Bank Group guidelines and international good practice. As newer, less polluting gensets become commercially available (e.g., the Cummins QSK50 engine with NOx emissions about half of that of KTA50-G3 model), the Company will procure and deploy these cleaner-burning units as part of their corporate NOx emission reduction strategy.

Considering the rural locations of most operations, the standard stack height configurations of each genset are normally sufficient in terms of adequately reducing ambient air quality impacts. Where site specific conditions dictate, such as existence of nearby buildings, the Company raises the stack height to appropriate levels to minimize ambient air quality impacts.

Because the Company’s business activities are restricted to providing small scale rental power generation equipment for relatively short durations in remote locations generally devoid of nearby affected communities, the Company’s community engagement activities are necessarily limited. Nevertheless and going forward, the Company will develop and maintain a procedure for external communications that includes methods to receive and register external communications from the public; screen and assess the issues raised and determine how to address them; provide, track, and document responses, if any; and adjust the management program, as appropriate.

In addition, the Company, where possible and relevant, will continue to assist communities in their projects sites through purchase of required materials / services locally and employment of local citizens in addition to providing training services / construction on power generation matters to local community free of cost.

Further information about the Company’s environmental and social performance can be obtained at:
Waleed Isaac
Managing Director
Sakr Energy Solution FZCO
Warehouse RA08XB06
P.O. Box 18051
Dubai
United Arab Emirates

Telephone: +97148862067
Fax: +97148862067

Broad Community Support is not applicable for this project